Park City, Utah, Jan. 29 -Nutraceutical International Corporation today reported results for the fiscal 2009 first quarter ended December 31, 2008.
Net sales for the fiscal 2009 first quarter were $39.6 million compared to $41.1 million for the same quarter of fiscal 2008. For the first quarter of fiscal 2009, net income was $3.1 million, or $0.28 diluted earnings per share, compared to net income of $3.2 million, or $0.28 diluted earnings per share, for the same quarter of fiscal 2008.
Operating cash flow for the fiscal 2009 first quarter ended December 31, 2008 was $3.1 million compared to $2.8 million for the same period of fiscal 2008. This operating cash flow, combined with net borrowings of $1.5 million, was used to invest $4.8 million in purchases of property and equipment.
Bill Gay, chairman and chief executive officer, commented, "Net income, cash flow and EBITDA remained strong under very difficult retail conditions. Net sales to many of our domestic and international customers were adversely affected by the accelerated decline in world economies during the first quarter of fiscal 2009. Management was able to partially mitigate the decline through promotional activities targeted at helping Health and Natural Food Stores overcome the reluctance to maintain normal inventory levels. Despite this decrease in net sales, we were able to maintain gross profit margins of 54.1% as a result of our continued focus on raw material sourcing and control of manufacturing costs. Additionally, synergies were achieved through reductions in operational and transitional costs related to businesses acquired in fiscal 2007 and fiscal 2008 as well as year-over-year cost improvements in many of our selling, general and administrative areas."
Mr. Gay continued, "The U.S. and global economic environment will continue to present ongoing uncertainties and challenges as we strive to serve our customers and maintain our competitive position within the Healthy Foods Channel. Management will focus on preserving our revenue base through continued promotions and reducing controllable costs. Our long term business strategy of selling primarily to the Healthy Foods Channel and growing through add-on acquisitions has served our stakeholders well over the last ten years as a public company and we are appreciative of those who support us in our efforts."
NUTRACEUTICAL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited; dollars in thousands)
December 31, September 30,
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2008 2008
Assets
Current assets, net $51,891 $55,577
Property, plant and equipment, net 55,633 52,356
Goodwill 37,161 37,632
Other non-current assets, net 16,123 16,099
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$160,808 $161,664
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Liabilities and Stockholders' Equity
Current liabilities $14,258 $19,239
Long-term liabilities 30,613 28,965
Stockholders' equity 115,937 113,460
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$160,808 $161,664
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NUTRACEUTICAL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; dollars in thousands, except per share data)
Three months ended
December 31,
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2008 2007
Net sales $39,629 $41,086
Cost of sales 18,197 18,773
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Gross profit 21,432 22,313
Operating expenses
Selling, general and administrative 15,773 16,628
Amortization of intangible assets 159 167
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Income from operations 5,500 5,518
Interest and other (income)/expense, net 510 380
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Income before provision for income taxes 4,990 5,138
Provision for income taxes 1,878 1,927
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Net income $3,112 $3,211
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Net income per common share
Basic $0.29 $0.29
Diluted 0.28 0.28
Weighted average common shares outstanding
Basic 10,849,221 11,123,792
Diluted 10,931,812 11,270,089
NUTRACEUTICAL INTERNATIONAL CORPORATION
EBITDA SCHEDULE
(unaudited; dollars in thousands)
Three months ended December 31,
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2008 2007
Net income $3,112 $3,211
Provision for income taxes 1,878 1,927
Interest and other (income)/ expense, net (1) 510 380
Depreciation and amortization 1,634 1,312
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EBITDA $7,134 $6,830
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(1) Includes amortization of deferred financing fees.