Published:
Nutraceutical Reports 2008 Fiscal Year End Results
PARK CITY, Utah, Nov. 20 /PRNewswire-FirstCall/ -- Nutraceutical
International Corporation (Nasdaq: NUTR) today reported results for the fiscal
2008 fourth quarter and year ended September 30, 2008.
Net sales for the fiscal 2008 fourth quarter were $40.9 million compared
to $39.9 million for the same quarter of fiscal 2007. For the fourth quarter
of fiscal 2008, net income was $1.5 million, or $0.14 diluted earnings per
share, compared to net income of $2.6 million, or $0.23 diluted earnings per
share, for the same quarter of fiscal 2007. Net income for the fourth quarter
of fiscal 2008 included a non-cash goodwill impairment charge of $1.8 million
(net of tax), or $0.17 per diluted share, related to the company's health food
stores. Net income for the fourth quarter of fiscal 2007 included a non-cash
intangible asset impairment charge of $0.3 million (net of tax), or $0.02 per
diluted share, related to the re-branding of certain health food stores.
Net sales for the fiscal year ended September 30, 2008 were $166.9 million
compared to $156.5 million for fiscal 2007. For fiscal 2008, net income was
$11.9 million (including the $1.8 million goodwill impairment charge), or
$1.07 diluted earnings per share (including the goodwill impairment charge of
$0.16 per share), compared to net income of $13.0 million (including the $0.3
million intangible asset impairment charge), or $1.15 diluted earnings per
share (including the intangible asset impairment charge of $0.02 per share),
for fiscal 2007.
Operating cash flow for the fiscal year ended September 30, 2008 was $20.3
million compared to $23.8 million for the same period of fiscal 2007. This
operating cash flow, combined with net borrowings of $8.0 million, was used to
invest $17.9 million in property and equipment, $5.9 million in acquisitions
of branded natural product businesses and $4.5 million in repurchases of
common stock.
Bill Gay, chairman and chief executive officer, commented, "Fiscal 2008
revenues were the highest in company history and reflect the positive
contributions of our fiscal 2007 and 2008 acquisitions. Fiscal 2008 gross
profit margins were strong and improved slightly to 54.4% as a result of our
focus on raw material sourcing and controlling manufacturing costs. Our
management team has been successful during these challenging economic times by
focusing on cost containment throughout the company to offset costs that are
outside of our control and inflationary pressures. We believe that the
strength of our balance sheet, operating cash flows and bank relationships are
important and will enable us to execute our business strategy and pursue
acquisition opportunities that can enhance EBITDA and profitability. We are
appreciative of our customers, employees and investors that support us in our
efforts to improve our business and achieve leadership in the Healthy Foods
Channel."
ABOUT NUTRACEUTICAL
We are an integrated manufacturer, marketer, distributor and retailer of
branded nutritional supplements and other natural products sold primarily to
and through domestic health and natural food stores. Internationally, we
market and distribute branded nutritional supplements and other natural
products to and through health and natural product distributors and retailers.
Our core business strategy is to acquire, integrate and operate, from
beginning to end, the manufacturing, marketing and distribution of branded
nutritional supplement businesses in the natural products industry. We
believe that the consolidation and integration of these acquired businesses
provides ongoing financial synergies through increased scale and market
penetration, as well as strengthened customer relationships.
We sell branded nutritional supplements and other natural products under
the trademarks Solaray(R), VegLife(R), KAL(R), Nature's Life(R), Sunny
Green(R), Action Labs(R), Natural Balance(R), NaturalMax(R), bioAllers(R),
Herbs for Kids(TM), Natra-Bio(R), NaturalCare(R), Zand(R), Health from the
Sun(R), Life-flo(R), Larenim(R), Living Flower Essences(R), Pioneer(R),
Thompson(R), Natural Sport(R), Supplement Training Systems(R), Premier One(R),
Montana Big Sky(TM), ActiPet(R), FunFresh Foods(TM), Dowd & Rogers(TM),
CompliMed(R), AllVia(TM), Oakmont Labs(R), Healthway(R), Body Gold(R), Sayge
Biosciences(TM), Monarch Nutraceuticals(TM) and Great Basin Botanicals(TM).
Under the name Woodland Publishing(TM), we publish, print and market a line of
books and booklets to, among others, book distributors, national retail
bookstores and health and natural food stores. We also distribute branded
products of certain third parties.
We own neighborhood natural food markets, which operate under the trade
names The Real Food Company (TM), Thom's Natural Foods(TM) and Cornucopia
Community Market(TM). We also own health food stores, which operate under the
trade names Fresh Vitamins(TM), Granola's(TM) and Pilgrim's Natureway(TM).
We manufacture and/or distribute one of the broadest branded product lines
in the industry with over 4,000 SKUs, including over 700 SKUs sold
internationally. We believe that as a result of our emphasis on innovation,
quality, loyalty, education and customer service, our brands are widely
recognized in health and natural food stores and among their customers.
This Press Release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. These statements relate to our future plans, objectives,
expectations, intentions and financial performance and the assumptions that
underlie these statements. These statements involve known and unknown risks,
uncertainties and other factors that may cause our actual results, level of
activity, performance or achievements to be materially different from any
future results, levels of activity, performance or achievements expressed or
implied by these statements. We undertake no obligation to update
forward-looking statements to reflect events or circumstances occurring after
the date of this Press Release. Important factors that may cause our results
to differ from these forward-looking statements include, but are not limited
to, government regulations, product liability claims and litigation, insurance
coverage issues, a decrease in or slowing of the growth rate of the vitamin,
mineral and supplement market, the success of the healthy foods channel,
consumer perception of safety and quality of our products and similar
products, competition, intellectual property rights of other parties, the loss
of key personnel, disruptions from acquisitions, issues with obtaining raw
materials of adequate quality or quantity, problems with information
management systems, manufacturing efficiencies and operations, litigation
generally, the volatility of the stock market generally and of our stock
specifically, a general lack of adequate industry analyst coverage, and other
factors indicated from time to time in our SEC reports, copies of which are
available upon request from our investor relations group or which may be
obtained at the SEC's website (http://www.sec.gov).
(C) 2008 Nutraceutical Corporation. All rights reserved.
NUTRACEUTICAL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited; dollars in thousands)
September 30, September 30,
2008 2007
Assets
Current assets, net $55,577 $51,534
Property, plant and equipment, net 52,356 39,506
Goodwill 37,632 38,978
Other non-current assets, net 16,099 16,384
$161,664 $146,402
Liabilities and Stockholders' Equity
Current liabilities $19,239 $20,275
Long-term liabilities 28,965 20,208
Stockholders' equity 113,460 105,919
$161,664 $146,402
NUTRACEUTICAL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; dollars in thousands, except per share data)
Three months ended Twelve months ended
September 30, September 30,
2008 2007 2008 2007
Net sales $40,899 $39,902 $166,885 $156,548
Cost of sales 18,914 18,429 76,106 71,622
Gross profit 21,985 21,473 90,779 84,926
Operating expenses
Selling, general and
administrative 16,434 16,217 66,973 61,905
Amortization of
intangible assets 179 161 701 391
Impairment of goodwill
and intangible asset 2,875 450 2,875 450
Income from operations 2,497 4,645 20,230 22,180
Interest and other
(income)/expense, net 262 443 1,270 1,257
Income before provision
for income taxes 2,235 4,202 18,960 20,923
Provision for income taxes 708 1,597 7,017 7,951
Net income $1,527 $2,605 $11,943 $12,972
Net income per common share
Basic $0.14 $0.23 $1.09 $1.17
Diluted 0.14 0.23 1.07 1.15
Weighted average common
shares outstanding
Basic 10,846,018 11,136,702 10,993,505 11,054,828
Diluted 10,966,785 11,307,910 11,127,634 11,253,283
NUTRACEUTICAL INTERNATIONAL CORPORATION
ADJUSTED EBITDA SCHEDULE
(unaudited; dollars in thousands)
Three months Twelve months
ended ended
September 30, September 30,
2008 2007 2008 2007
Net income $1,527 $2,605 $11,943 $12,972
Provision for income taxes 708 1,597 7,017 7,951
Interest and other (income)/expense,
net (1) 262 443 1,270 1,257
Depreciation and amortization 1,603 1,292 5,859 4,793
Impairment of goodwill and intangible
asset (2) 2,875 450 2,875 450
Adjusted EBITDA $6,975 $6,387 $28,964 $27,423
(1) Includes amortization of deferred financing fees.
(2) A non-cash goodwill impairment charge of $2,875 related to the
company's health food stores was recorded for the three months and
twelve months ended September 30, 2008. A non-cash intangible asset
impairment charge of $450 related to the re-branding of certain health
food stores was recorded for the three months and twelve months ended
September 30, 2007.
SOURCE Nutraceutical International Corporation
Copyright © 2009, PRNewswire
Copyright © 2009, NewsBlaze,
Daily NewsTags: ,REA,HEA,SPM,ERN,UT-Nutraceutical-EARN
_ _Is your favorite bookmark site missing?
Ask for it.
Search News
Daily News
