Nutrastar Announces Full Year 2012 Results, Issues 2013 Revenue Guidance
Core Consumer Product Cordyceps Militaris Continues to Drive Growth; Annual Sales Up 7.5% Year-Over-Year; Gross Margin at 76.2%
Expanded Production Capacity Expected to Augment Future Growth; 2013 Revenue Anticipated at Between $44 Million and $46 Million, Representing an Increase of Between 19% and 25% YOY
HARBIN, China, March 29, 2013 /PRNewswire-FirstCall/ -- Nutrastar International Inc. (OTCBB: 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 results for the year ended December 31, 2012.
Financial Highlights
- Net revenue was $36.77 million, an increase of 7.5% from full year 2011.
- Gross profit was $28.03 million, representing a gross margin of 76.2%, an increase of 0.3% from the previous year.
- Net income was $17.24 million, representing a net margin of 46.9%.
- Basic and diluted EPS were $1.10 and $1.04, respectively, with 15.45 million basic shares and 16.60 million diluted shares outstanding.
Management Commentary
"While we were quite pleased with our 2012 financial results, as mentioned last quarter, the Company experienced a supply shortage due to required operational maintenance that occurred within our facilities – resulting in full year sales being lower than expected. Despite this short disruption, total sales for the year ended December 31, 2012 grew by 7.5% reaching approximately $36.8 million, as compared to the previous year's sales of $34.2 million. High demand led to a 9.5% year-over-year increase in sales of our core consumer product, Cordyceps; while organic specialty foods sales saw a 4.7% increase and functional health beverages saw a 0.9% increase. Gross profit remained strong at 76.2%. The year of 2012 was also marked by the completion of our large multi-phase, multi-year production capacity expansion project, which overall boosted capacity from 55 tons to 100 tons, a huge milestone achieved for the Company and the team," Ms. Lianyun Han, CEO of Nutrastar, commented.
On the subject of the Company's financial position, Ms. Han stated, "As vouched and verified by our independent auditor, we closed the year with a cash balance of approximately $75.5 million, equivalent to roughly $4.55 per diluted share. These funds are being managed wisely and conservatively, and are set aside for the Company's future organic and inorganic growth initiatives such as brand and product development, as well as marketing & advertising designed to promote our consumer product portfolio in cities deemed most opportunistic."
Ms. Han continued, "Looking at 2013, current demographical and market conditions in China seemingly continue to remain advantageous to our businesses and our premium consumer product offerings, particularly as the country becomes more affluent; its citizens become more health conscious; and rising healthcare costs continue to result in increasing demand for alternative medicines and preventative measures such as our core product Cordyceps. We expect this year to be one of substantial expansion in both our top and bottom line as well as within our product offerings and overall market presence. Equipped with heightened capacity, we also expect to see improvements related to our costs and operations, and anticipate that with the proper, intelligent allocation of funds, we will continue building greater market awareness for our premium functional health beverages and other products in China with the larger goal to expand distribution into the international arena. We look forward to the remainder of the year ahead and encourage any interested party to reach out to us directly for more information on Nutrastar and our innovative, premium consumer product portfolio."
Outlook for the Year Ending December 31, 2013
Based on management's current expectations, the Company projects 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 year ended December 31, 2012, please refer to the Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on or about March 29, 2013.
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 332 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]
Make sure you are first to receive timely up-to-date information on Nutrastar. Sign up for Nutrastar's email news alert system today at: http://www.nutrastarintl.com/alerts
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," "projects," "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 |
||||||
| CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
||||||
| (AMOUNTS EXPRESSED IN US DOLLARS) |
||||||
| Year Ended December 31, |
||||||
| 2012 |
2011 |
|||||
| REVENUE |
$ |
36,771,176 |
$ |
34,205,954 |
||
| Cost of goods sold |
(8,742,166) |
(8,246,853) |
||||
| GROSS PROFIT |
28,029,010 |
25,959,101 |
||||
| Selling expenses |
(1,658,956) |
(1,640,796) |
||||
| General and administrative expenses |
(3,102,070) |
(2,843,298) |
||||
| Income from operations |
23,267,984 |
21,475,007 |
||||
| Other income (expenses): |
||||||
| Interest income |
255,918 |
193,742 |
||||
| Foreign exchange differences |
5,610 |
60, 988 |
||||
| Change in fair value of warrants |
144,238 |
1,053,862 |
||||
| Other income |
7,921 |
- |
||||
| Total other income (expenses) |
413,687 |
1,308,592 |
||||
| Income before income taxes |
23,681,671 |
22,783,599 |
||||
| Provision for income taxes |
(6,438,960) |
(5,800,632) |
||||
| NET INCOME |
17,242,711 |
16,982,967 |
||||
| OTHER COMPREHENSIVE INCOME: |
||||||
| Foreign currency translation adjustments |
250,445 |
2,956,953 |
||||
| COMPREHENSIVE INCOME |
$ |
17,493,156 |
$ |
19,939,920 |
||
| Earnings per share |
||||||
| Basic |
$ |
1.10 |
$ |
1.12 |
||
| Diluted |
$ |
1.04 |
$ |
1.04 |
||
| Weighted average number of shares outstanding |
||||||
| Basic |
15,453,656 |
14,784,564 |
||||
| Diluted |
16,600,053 |
16,339,999 |
||||
| NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES |
||||||
| CONSOLIDATED BALANCE SHEETS |
||||||
| (AMOUNTS EXPRESSED IN US DOLLARS) |
||||||
| December 31, |
||||||
| 2012 |
2011 |
|||||
| ASSETS |
||||||
| CURRENT ASSETS |
||||||
| Cash and cash equivalents |
$ |
75,526,533 |
$ |
54,556,329 |
||
| Restricted cash |
- |
4,170 |
||||
| Accounts receivable |
81,497 |
82,516 |
||||
| Inventories |
965,251 |
898,871 |
||||
| Prepayments and other receivables |
1,321,726 |
1,194,466 |
||||
| Total current assets |
77,895,007 |
56,736,352 |
||||
| OTHER ASSETS |
||||||
| Intangible assets, net |
1,552,022 |
2,024,593 |
||||
| Property, plant and equipment, net |
15,991,060 |
12,395,567 |
||||
| Construction in process |
- |
5,271,609 |
||||
| Total assets |
$ |
95,438,089 |
$ |
76,428,121 |
||
| LIABILITIES AND STOCKHOLDERS' EQUITY |
||||||
| CURRENT LIABILITIES |
||||||
| Accounts payable |
$ |
- |
$ |
6,339 |
||
| Other payables and accruals |
1,481,198 |
1,064,045 |
||||
| Taxes payable |
2,981,136 |
2,585,738 |
||||
| Due to a related party |
150,036 |
80,648 |
||||
| Preferred stock dividend payable |
528,528 |
529,851 |
||||
| Warrants liabilities |
173 |
144,411 |
||||
| Total current liabilities |
5,141,071 |
4,411,032 |
||||
| Total liabilities |
5,141,071 |
4,411,032 |
||||
| COMMITMENTS AND CONTINGENCIES (Note 19) |
||||||
| STOCKHOLDERS' EQUITY |
||||||
| Preferred Stock, $0.001 par value, (1,000,000 shares authorized, |
2,577,324 |
3,371,206 |
||||
| Common stock, $0.001 par value, 190,000,000 shares authorized, |
15,908 |
14,963 |
||||
| Additional paid-in capital |
19,029,586 |
17,180,280 |
||||
| Statutory reserves |
4,960,023 |
3,076,552 |
||||
| Treasury stock, at cost, 43,555 shares and 4,661 shares |
(78,767) |
(9,553) |
||||
| Retained earnings |
58,325,932 |
43,167,074 |
||||
| Accumulated other comprehensive income |
5,467,012 |
5,216,567 |
||||
| Total stockholders' equity |
90,297,018 |
72,017,089 |
||||
| Total liabilities and stockholders' equity |
$ |
95,438,089 |
$ |
76,428,121 |
||
| NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES |
||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||
| (AMOUNTS EXPRESSED IN US DOLLARS) |
||||||
| Year Ended December 31, |
||||||
| 2012 |
2011 |
|||||
| CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||
| Net income |
$ |
17,242,711 |
$ |
16,982,967 |
||
| Adjustments to reconcile net income to cash provided by operating activities: |
||||||
| Change in fair value of warrants |
(144,238) |
(1,053,862) |
||||
| IR warrant and restricted stock expense |
45,000 |
79,415 |
||||
| Depreciation and amortization |
1,235,468 |
1,142,635 |
||||
| Loss on disposal of property and equipment |
76,219 |
- |
||||
| Share-based compensation expense |
809,664 |
394,207 |
||||
| (Increase) decrease in assets: |
||||||
| Accounts receivable |
1,216 |
187, 353 |
||||
| Inventories |
(63,903) |
12,885 |
||||
| Prepayments and other receivables |
(123,802) |
(912,759) |
||||
| Increase (decrease) in liabilities: |
||||||
| Accounts payable |
(6,327) |
(122,853) |
||||
| Other payables and accruals |
412,785 |
277,540 |
||||
| Taxes payable |
387,399 |
1,808,330 |
||||
| Net cash provided by operating activities |
19,872,192 |
18,795,858 |
||||
| CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||
| Purchase of property, plant and equipment |
(315,257) |
(7,613,286) |
||||
| Proceeds from disposal of fixed assets |
- |
209,177 |
||||
| Refund of payments for building construction |
1,267,327 |
- |
||||
| Net cash provided by (used in) investing activities |
952,070 |
(7,404,109) |
||||
| CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||
| Purchase of common stock |
(69,214) |
(9,553) |
||||
| Decrease in restricted cash |
4,170 |
188,905 |
||||
| Advance from a related party |
64,829 |
29,309 |
||||
| Net cash (used in) provided by financing activities |
(215) |
208,661 |
||||
| Foreign currency translation adjustment |
146,157 |
2,197,071 |
||||
| INCREASE IN CASH AND CASH EQUIVALENTS |
20,970,204 |
13,797,481 |
||||
| CASH AND CASH EQUIVALENTS, at the beginning of the year |
54,556,329 |
40,758,848 |
||||
| CASH AND CASH EQUIVALENTS, at the end of the year |
$ |
75,526,533 |
$ |
54,556,329 |
||
| NON-CASH TRANSACTIONS |
||||||
| Preferred stock and dividend converted into common stock |
$ |
995,587 |
$ |
1,203,346 |
||
| Preferred stock dividend payable |
200,382 |
414,308 |
||||
| Share-based payment to officers and directors under equity incentive plan |
809,664 |
394,207 |
||||
| Share-based payment – IR warrants and restricted shares |
45,000 |
42,150 |
||||
| SUPPLEMENTAL DISCLOSURE INFORMATION |
||||||
| Income taxes paid |
$ |
6,179,713 |
$ |
4,210,323 |
||
SOURCE Nutrastar International Inc.
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