EX-99.1 2 a08-28897_1ex99d1.htm EX-99.1

Exhibit 99.1

 

FOR:

 

NUTRACEUTICAL INTERNATIONAL CORPORATION

 

 

 

CONTACT:

 

Cory J. McQueen

 

 

Vice President and

 

 

Chief Financial Officer

 

 

(435) 655-6106

 

NUTRACEUTICAL REPORTS 2008 FISCAL YEAR END RESULTS

 

PARK CITY, Utah, November 20/PRNewswire-First Call/—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®, VegLife®, KAL®, Nature’s Life®, Sunny Green®, Action Labs®, Natural Balance®, NaturalMax®, bioAllers®, Herbs for KidsTM, Natra-Bio®, NaturalCare®, Zand®, Health from the Sun®, Life-flo®, Larénim®, Living Flower Essences®, Pioneer®, Thompson®, Natural Sport®, Supplement Training Systems®, Premier One®, Montana Big Sky™, ActiPet®, FunFresh Foods™, Dowd & Rogers™, CompliMed®, AllVia™, Oakmont Labs®, Healthway®, Body Gold®, Sayge Biosciences, Monarch Nutraceuticals™ and Great Basin Botanicals™.  Under the name Woodland Publishing™, 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 ™, Thom’s Natural Foods™ and Cornucopia Community Market™.  We also own health food stores, which operate under the trade names Fresh Vitamins™, Granola’s™ and Pilgrim’s Natureway™.

 

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 (www.sec.gov).

 

© 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 September 30,

 

Twelve months ended 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 ended September 30,

 

Twelve months ended 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.