Nutraceutical International reports fiscal Q1 net earnings of US$4.1M, compared to year-ago earnings of US$3.5M, as net sales rise 3.8% to US$51.6M
PARK CITY, Utah
January 30, 2014
– Nutraceutical International Corporation (NASDAQ: NUTR) today reported results for the fiscal 2014 first quarter ended December 31, 2013. Net sales for the fiscal 2014 first quarter were $51.6 million compared to $49.7 million for the same quarter of fiscal 2013. For the first quarter of fiscal 2014, net income was $4.1 million, or $0.42 diluted earnings per share, compared to net income of $3.5 million, or $0.36 diluted earnings per share, for the same quarter of fiscal 2013.
Operating cash flow for the fiscal 2014 first quarter was $5.5 million compared to $6.8 million for the same period of fiscal 2013. The fiscal 2014 first quarter operating cash flow, combined with net borrowings of $2.0 million and existing cash, was primarily used to invest $6.2 million in acquisitions of natural product businesses, $3.1 million in purchases of property, plant and equipment and $0.5 million in purchases of common stock for treasury.
Bill Gay, chairman and chief executive officer, commented, "Our fiscal 2014 first quarter results were a reflection of core strength in our branded business. We believe these results correspond to a long-term macro trend of individuals seeking healthier and more active lifestyles as they age. Positive growth in quarterly net sales, net income and Adjusted EBITDA continued. Management is focused on niche acquisitions that round out the branded product offering available to our health and natural food store customers. Three small acquisitions were completed during the fiscal first quarter. Enhancing in-store service and educational relationships with retail stores that we serve remain the primary objective in 2014 for our marketing and sales organizations. This is critical as we expand our branded portfolio of supplement, beauty and nutritional products."
Mr. Gay stated, "Ongoing efforts to innovate operationally, control material costs, reduce labor expenses and streamline our marketing and sales infrastructure remain a key management focus this fiscal year. Our larger corporate customers have continued to expand and consolidate their geographic influence in many major US markets. Small to medium chains of health food stores and natural food markets that aggressively market and promote are experiencing revenue expansion, while some smaller retailers that fail to implement these competitive tactics face an uphill battle. Management and our employees would like to express appreciation to our customers and stockholders for their ongoing support."
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 businesses in the natural products industry that manufacture, market and distribute branded nutritional supplements. 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 manufacture and sell nutritional supplements and other natural products under numerous brands including Solaray®, KAL®, Nature's Life®, LifeTime®, Natural Balance®, bioAllers®, Herbs for Kids®, NaturalCare®, Health from the Sun®, Life-flo®, Organix South®, Pioneer® and Monarch Nutraceuticals™.
We own neighborhood natural food markets, which operate under the trade names The Real Food Company™, Thom's Natural Foods™ and Cornucopia Community Market™. We also own health food stores, which operate under various trade names including Fresh Vitamins™, Granola's™, Nature's Discount® and Warehouse Vitamins™.
We manufacture and/or distribute one of the broadest branded product lines in the industry with approximately 7,500 SKUs, including approximately 1,000 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.