Nutraceutical Reports Fiscal 2015 Q2 Results

PARK CITY, Utah, April 30, 2015 /PRNewswire/ -- Nutraceutical International Corporation (NASDAQ: NUTR) today reported results for the fiscal 2015 second quarter ended March 31, 2015.  Net sales for the fiscal 2015 second quarter were $55.4 million compared to $54.9 million for the same quarter of fiscal 2014.  For the second quarter of fiscal 2015, net income was $4.1 million, or $0.43 diluted earnings per share, compared to net income of $4.3 million, or $0.44 diluted earnings per share, for the same quarter of fiscal 2014.    

Net sales for the six months ended March 31, 2015 were $108.4 million compared to $106.4 million for the same period of fiscal 2014.  For the six months ended March 31, 2015, net income was $7.4 million, or $0.77 diluted earnings per share, compared to net income of $8.5 million, or $0.86 diluted earnings per share, for the same period of fiscal 2014. 

Operating cash flow for the six months ended March 31, 2015 was $11.2 million compared to $10.8 million for the same period of fiscal 2014.  The operating cash flow for the six months ended March 31, 2015, combined with existing cash, was primarily used to invest $4.2 million in purchases of property, plant and equipment, $2.4 million in purchases of common stock for treasury and to repay net borrowings of $5.0 million on the Company's revolving credit facility.

Bill Gay, chairman and chief executive officer, commented, "Our overall results for the second quarter of 2015 were an improvement over our first quarter results. Fiscal 2015 second quarter net sales growth of 1.0% was primarily the result of fiscal 2014 acquisitions and a slight increase in domestic sales.  Unfortunately, international sales were impacted negatively by a stronger U.S. dollar and decreased orders from international customers. Out-of-stocks continue to be a key priority for management. We continue to focus on integrating the fiscal 2014 acquisitions and believe these efforts, along with other operational enhancements we have made, will lead to further improvements in our business by the latter part of calendar 2015."

Mr. Gay stated, "Operating cash flow and Adjusted EBITDA remained strong for the second quarter.  This provided the financial resources for us to continue to re-purchase stock and pay down debt.  The decrease in fiscal 2015 second quarter net income was primarily a result of increased depreciation and amortization expense. Throughout this fiscal year, we have invested considerable time and financial resources conducting due diligence on potential acquisitions.  The larger opportunities pursued so far this year did not provide the synergies we require.  Fortunately, the market continues to provide additional potential acquisitions to evaluate.  In reviewing these, we intend to remain selective. Acquisitions are a primary long-term component of our growth and we do not anticipate this changing."

Mr. Gay continued, "We compete in the fragmented healthy foods channel.  This channel is comprised of over 17,000 retail stores, many operating independently.  We offer over 8,000 SKUs to our customers – and no product or customer represents over ten percent of our sales. We rely on numerous long-term customer relationships that grow with us as we add brands and new products.  Our business strategy and operational model is complex, which is both a challenge and opportunity.  Focusing on this opportunity has served our stakeholders for many years.  Management appreciates everyone that enables us to focus on growing our business over the long term."

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 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 provide 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®, NaturalCare®, Health from the Sun®, Pioneer®, Nutra BioGenesis™, Life-flo®, Organix South®, Heritage Store® 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™ and Peachtree Natural Foods®.

We manufacture and/or distribute one of the broadest branded product lines in the industry with over 8,000 SKUs, including approximately 800 SKUs exclusively 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 the Private Securities Litigation Reform Act of 1995 with respect to our financial condition, results of operations and business. These forward-looking statements can be identified by the use of terms such as "believe," "expects," "plan," "intend," "may," "will," "should," "can," or "anticipates," or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause industry trends or our actual results to be materially different from any future results expressed or implied by these statements.  Important factors that may cause our results to differ from these forward-looking statements include, but are not limited to: (i) changes in or new government regulations or increased enforcement of the same; (ii) unavailability of desirable acquisitions, inability to complete them or inability to integrate them; (iii) increased costs, including from increased raw material or energy prices; (iv) changes in general worldwide economic or political conditions; (v) adverse publicity or negative consumer perception regarding nutritional supplements; (vi) issues with obtaining raw materials of adequate quality or quantity; (vii) litigation and claims, including product liability, intellectual property and other types;  (viii) disruptions from or following acquisitions including the loss of customers; (ix) increased competition; (x) slow or negative growth in the nutritional supplement industry or the healthy foods channel; (xi) the loss of key personnel or the inability to manage our operations efficiently; (xii) problems with information management systems, manufacturing efficiencies and operations; (xiii) insurance coverage issues; (xiv) the volatility of the stock market generally and of our stock specifically; (xv) increases in the cost of borrowings or unavailability of additional debt or equity capital, or both, or fluctuations in foreign currencies; and (xvi) interruption of business or negative impact on sales and earnings due to acts of God, acts of war, terrorism, bio-terrorism, civil unrest and other factors outside of our control.  Copies of our SEC reports are available upon request from our investor relations department or may be obtained at the SEC's website (www.sec.gov).

SOURCE Nutraceutical International Corporation

Related Links

www.nutraceutical.com