Nutrastar Announces First Quarter 2013 Results, Maintains Full Year Revenue Guidance Range of $44 million to $46 Million
HARBIN, China, May 14, 2013 /PRNewswire-FirstCall/ -- Nutrastar International Inc. (OTCQB: NUIN; "Nutrastar" or the "Company"), a leading producer and supplier of premium branded consumer products, including commercially cultivated Cordyceps Militaris ("Cordyceps"), functional health beverages and organic and specialty foods, today announced its financial results for the quarter ended March 31, 2013.
Financial Highlights
- Net revenue increased 8.0% to $7.41 million, as compared to $6.86 million in the quarter ended March 31, 2012.
- Gross profit increased 11.0% to $5.64 million, up from $5.08 million in the comparable 2012 quarter, representing a gross margin of 76.1%.
- Net income was $3.41 million, as compared to $2.95 million in Q1 2012.
- Basic and diluted EPS were $0.21 and $0.20, respectively, with 15.86 million basic shares and 16.99 million diluted shares outstanding.
Management Commentary
"Nutrastar's first quarter 2013 was marked by continued sales growth, increased profitability and a growing balance sheet. Commercially cultivated Cordyceps, our core consumer product business, saw a year-over-year sales increase of 11.4%. Our functional health beverages and organic specialty products businesses experienced a sales decrease of 7.9% and 1.1% in the quarter, respectively, due to the timing of the reorder cycle from the beverage distributors. As a percentage of revenue, gross profit increased by 2% year-over-year, reaching 76.1%. As expected, we saw a slight improvement in our cost of goods sold on a percentage basis resulting from our increased production capacity and utilization. Our cash balance at the end of the quarter remained at a strong $77.9 million or approximately $4.59 per diluted share, as seen and verified at the bank by our independent auditor," stated, Ms. Lianyun Han, CEO of Nutrastar.
Ms. Han continued, "Looking into Q2 and the remainder of 2013, we are confident in our ability to maintain our upward momentum and capitalize on rising demand stemming from China's young, increasing affluent and aging populations. Strategic advertising and marketing initiatives will remain steadfast and continue to be aimed at these consumer populations and others. We will continue to seek out and identify new and attractive markets within China for our premium consumer products as well as consider complementary acquisitions that are accretive to the company and our shareholders."
Outlook for the Year Ending December 31, 2013
Based on management's current expectations, the Company maintains its expectation that 2013 revenue will be in the range of $44 million to $46 million, representing an approximate 19% to 25% top line increase year-over-year.
Request for Call with Management
Investors are invited to request a call with Nutrastar's management team. For those investors who are interested in speaking with management, please contact American Capital Ventures at +1-305-918-7000 to schedule.
For more information regarding Nutrastar's financial performance during the quarter ended March 31, 2013, please refer to the Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on or about May 14, 2013. Management is available to discuss the financial results with investors should they have any questions. To arrange a call with the management team, please contact Investor Relations at 305-918-7000.
About Nutrastar International Inc.
Nutrastar is a China based leading producer and supplier of premium branded consumer products including commercially cultivated Cordyceps Militaris, functional health beverages as well as specialty and organic foods. Cordyceps Militaris is one of the most highly regarded herbal nutrients in Traditional Chinese Medicine. The Company is headquartered in Harbin, capital of Heilongjiang Province, with 330 employees, including 21 in R&D, and 149 in sales and marketing. The products of Nutrastar are sold throughout China via a sales and distribution network that covers more than 10 provinces. More information may be found at http://www.nutrastarintl.com/ or e-mail: [email protected]
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Safe Harbor Statement
This news release contains "forward-looking statements" relating to the business of Nutrastar International Inc., its subsidiaries and other affiliate companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the Company with the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, the Company does not assume a duty to update any forward-looking statements to reflect events or circumstances after the date hereof.
For more information, please contact:
Howard Gostfrand
American Capital Ventures
Tel: +1-305-918-7000
Email: [email protected]
| NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES |
||||||
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
||||||
| (Unaudited) |
||||||
| (AMOUNTS EXPRESSED IN US DOLLARS) |
||||||
|
For the Three Months Ended |
||||||
| March 31, |
||||||
| 2013 |
2012 |
|||||
| REVENUE |
$ |
7,411,136 |
$ |
6,861,018 |
||
| Cost of goods sold |
(1,772,288) |
(1,778,568) |
||||
| GROSS PROFIT |
5,638,848 |
5,082,450 |
||||
| Selling expenses |
(430,463) |
(382,358) |
||||
| General and administrative expenses |
(592,515) |
(664,705) |
||||
| Income from operations |
4,615,870 |
4,035,387 |
||||
| Other income (expenses): |
||||||
| Interest income |
83,741 |
67,218 |
||||
| Foreign exchange differences |
(5,187) |
2,404 |
||||
| Change in fair value of warrants |
- |
(4,029) |
||||
| Total other income (expenses) |
78,554 |
65,593 |
||||
| Income before income taxes |
4,694,424 |
4,100,980 |
||||
| Provision for income taxes |
(1,279,740) |
(1,151,402) |
||||
| NET INCOME |
3,414,684 |
2,949,578 |
||||
| OTHER COMPREHENSIVE INCOME: |
||||||
| Foreign currency translation adjustments |
239,747 |
79,753 |
||||
| COMPREHENSIVE INCOME |
$ |
3,654,431 |
$ |
3 ,029,331 |
||
| Earnings per share |
||||||
| Basic |
$ |
0.21 |
$ |
0.19 |
||
| Diluted |
$ |
0.20 |
$ |
0.18 |
||
| Weighted average number of shares outstanding |
||||||
| Basic |
15,863,826 |
15,361,458 |
||||
| Diluted |
16,995,928 |
16,512,858 |
||||
| See accompanying notes to consolidated financial statements |
||||||
| NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES |
||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
| (AMOUNTS EXPRESSED IN US DOLLARS) |
||||||
| March 31, |
December 31, |
|||||
| 2013 |
2012 |
|||||
| (Unaudited) |
||||||
| ASSETS |
||||||
| CURRENT ASSETS |
||||||
| Cash and cash equivalents |
$ |
77,942,113 |
$ |
75,526,533 |
||
| Accounts receivable |
82,299 |
81,497 |
||||
| Inventories |
1,723,342 |
965,251 |
||||
| Prepayments and other receivables |
879,310 |
1,321,726 |
||||
| Total current assets |
80,627,064 |
77,895,007 |
||||
| OTHER ASSETS |
||||||
| Intangible assets, net |
1,436,433 |
1,552,022 |
||||
| Property, plant and equipment, net |
15,789,127 |
15,991,060 |
||||
| Total assets |
$ |
97,852,624 |
$ |
95,438,089 |
||
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
| CURRENT LIABILITIES |
||||||
| Other payables and accruals |
$ |
1,625,902 |
$ |
1,481,198 |
||
| Taxes payable |
1,534,366 |
2,981,136 |
||||
| Due to a related party |
158,200 |
150,036 |
||||
| Preferred stock dividend payable |
583,920 |
528,528 |
||||
| Warrants liabilities |
173 |
173 |
||||
| Total current liabilities |
3,902,561 |
5,141,071 |
||||
| Total liabilities |
3,902,561 |
5,141,071 |
||||
| COMMITMENTS AND CONTINGENCIES (Note 17) |
||||||
| STOCKHOLDERS' EQUITY |
||||||
| Preferred Stock, $0.001 par value, 1,000,000 shares authorized, 113,010 |
2,577,324 |
2,577,324 |
||||
| Common stock, $0.001 par value, 190,000,000 shares authorized, |
15,908 |
15,908 |
||||
| Additional paid-in capital |
19,083,592 |
19,029,586 |
||||
| Statutory reserves |
5,327,241 |
4,960,023 |
||||
| Treasury stock, at cost, 43,555 shares |
(78,767) |
(78,767) |
||||
| Retained earnings |
61,318,006 |
58,325,932 |
||||
| Accumulated other comprehensive income |
5,706,759 |
5,467,012 |
||||
| Total stockholders' equity |
93,950,063 |
90,297,018 |
||||
| Total liabilities and stockholders' equity |
$ |
97,852,624 |
$ |
95,438,089 |
||
| See accompanying notes to consolidated financial statements |
||||||
| NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES |
||||||
| CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
| (Unaudited) |
||||||
| (AMOUNTS EXPRESSED IN US DOLLARS) |
||||||
| For the Three Months Ended |
||||||
| March 31, |
||||||
| 2013 |
2012 |
|||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||
| Net income |
$ |
3,414,684 |
$ |
2,949,578 |
||
| Adjustments to reconcile net income to cash provided by operating activities: |
||||||
| Change in fair value of warrants |
- |
4,029 |
||||
| Depreciation and amortization |
362,996 |
309,252 |
||||
| Loss on disposal of property and equipment |
||||||
| Share-based compensation expense |
54,006 |
101,483 |
||||
| (Increase) decrease in assets: |
||||||
| Accounts receivable |
(584) |
(7,911) |
||||
| Inventories |
(754,380) |
(430,950) |
||||
| Prepayments and other receivables |
445,232 |
516,790 |
||||
| Increase (decrease) in liabilities: |
||||||
| Accounts payable |
- |
(6,332) |
||||
| Other payables and accruals |
83,749 |
48,578 |
||||
| Taxes payable |
(1,452,440) |
(1,092,388) |
||||
| Net cash provided by operating activities |
2,153,263 |
2,392,129 |
||||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||
| Purchase of property, plant and equipment |
- |
(15,927) |
||||
| Net cash used in investing activities |
- |
(15,927) |
||||
| CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||
| Decrease in restricted cash |
- |
4,170 |
||||
| Net cash (used in) provided by financing activities |
- |
4,170 |
||||
| Foreign currency translation adjustment |
262,317 |
59,349 |
||||
| INCREASE IN CASH AND CASH EQUIVALENTS |
2,415,580 |
2,439,721 |
||||
| CASH AND CASH EQUIVALENTS, at the beginning of the period |
75,526,533 |
54,556,329 |
||||
| CASH AND CASH EQUIVALENTS, at the end of the period |
$ |
77,942,113 |
$ |
56, 996,050 |
||
| NON-CASH TRANSACTIONS |
||||||
| Preferred stock and dividend converted into common stock |
$ |
- |
$ |
978,282 |
||
| Preferred stock dividend payable |
55,392 |
65,144 |
||||
| Share-based payment to officers and directors under equity incentive plan |
54,006 |
101,483 |
||||
| SUPPLEMENTAL DISCLOSURE INFORMATION |
||||||
| Income taxes paid |
$ |
2,168,693 |
$ |
1,899,301 |
||
| See accompanying notes to consolidated financial statements |
||||||
SOURCE Nutrastar International Inc.
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