Nutrastar Announces Strong Second Quarter 2012 Results

HARBIN, China, Aug. 13, 2012 /PRNewswire-Asia-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 three months and six months ended June 30, 2012.

Financial Highlights for the Three Months Ended June 30, 2012
 

• Net revenue was $10.04 million, an increase of 30.6% from $7.68 million in the quarter ended June 30, 2011.
• Gross profit increased 27.2% to $7.56 million, up from $5.95 million in the comparable 2011 quarter, representing a gross margin of 75.4%.
• Net income was $4.90 million, up 25.6% from $3.90 million in Q2 2011.
• Basic and diluted EPS were $0.31 and $0.30, respectively, with 15.38 million basic shares and 16.52 million diluted shares outstanding.

Financial Highlights for the Six Months Ended June 30, 2012
 

• Net revenue was $16.90 million, an increase of 25.3% from $13.48 million in the six months ended June 30, 2011.
• Gross profit increased 21.9% to $12.65 million, up from $10.37 million in the comparable 2011 six month period, representing a gross margin of 74.8%.
• Net income was $7.85 million, up 13.6% from $6.91 million in the first six months of 2011.
• Basic and diluted EPS were $0.50 and $0.48, respectively, with 15.37 million basic shares and 16.51 million diluted shares outstanding.

Management Commentary

"We are quite pleased with our progress in the second quarter and first six months of 2012. While tough macroeconomic conditions remained steadfast, we continued to execute on our growth strategy and yield lucrative results," Ms. Lianyun Han, CEO of Nutrastar, commented. "By focusing on growing our sales volume through existing distribution channels, we saw revenue from product sales reach $10.04 million in second quarter, up 30.6% year-over-year and $16.9 million in the first six months, up 25.3% year over year. Demand for both our core consumer product Cordyceps and functional health drinks stayed strong with second quarter sales up 23.8% and 76.8% from the comparable 2011 period, respectively. Moreover, net income rose 25.6% in the second quarter and 13.6% in the first six months, while gross margin came in at a robust 75.4%, good indications of a strong and growing business."

Commenting on the company's cash position, Ms. Han stated, "As noted in our filings with the Securities & Exchange Commission and verified by our independent auditor, we've had and continue to have an extremely solid balance sheet, comprised of very little debt and a substantial cash position. Amidst volatile financial markets and an uncertain future, our strong balance sheet and large cash position, roughly $3.90 per diluted share, puts us in a powerful position as a company and opens the doors of opportunity that might not otherwise be present. It's important that we continue to manage this cash wisely and conservatively and use it towards growing the business organically and through acquisition if the right opportunities present themselves."

Ms. Han added, "Looking ahead, in terms of production capacity, our Cordyceps expansion project is expected to stay on track throughout the rest of 2012 to meet our goal of 100 tons production capacity by end of year 2013, an increase of 14.9% from current levels. We are eagerly awaiting and excited for the completion of this final stage which will allow us to better meet growing demand of our Cordyceps-related consumer products and further strengthen our top and bottom line."

Financial Position as of June 30, 2012


The Company had cash and cash equivalents totaling $64.47 million or $3.90 per diluted share, total assets of approximately $83.98 million or $5.08 per diluted share, working capital of $62.03 million or $3.76 per diluted share, and stockholders' equity of $79.78 million. Net cash generated from operating activities during the six months ended June 30, 2012 was $8.88 million up from $6.00 million in the comparable 2011 period. 

Outlook for the Year Ending December 31, 2012


Based on management's current expectations, it is still believed that revenue will be in the range of $40 million to $44 million, representing an approximate top line increase of 17% to 29% year over year.

Financial Results Conference Call

Nutrastar will host a conference call at 9:00 a.m. ET on Monday, August 13, 2012 to discuss the Company's second quarter 2012 results. Ms. Lianyun Han, Chief Executive Officer, and Mr. Robert Tick, Chief Financial Officer, will be hosting the call.

Investors are invited to participate on the live call by dialing +1 (877) 407- 0784 for domestic and +1 (201) 689-8560 for international.  Please reference event ID: 398605.

For investors that would like to listen to the call via webcast, please log on to http://public.viavid.com/index.php?id=101375 approximately 5 minutes before the start of the call.

A replay of the call will be available for two (2) weeks following the call starting at 12:00 p.m. Noon ET on August 13, 2012 and ending at 11:59 p.m. ET on August 27, 2012. To list to the replay, investors can dial +1 (877) 870-5176 for domestic and +1 (858) 384-5517 for international.  The pass code for the replay is: 398605.

For more information regarding Nutrastar's financial performance during the quarter ended June 30, 2012, please refer to the Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on or about August 13, 2012.

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," "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]

SOURCE Nutrastar International Inc.

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