Nutraceutical reports Q1 results

Nutraceutical reports Q1 results

Fiscal 2013 first quarter net sales growth of $3.1 million came principally from fiscal 2012 acquisitions and increased branded domestic sales.

Nutraceutical International Corp. (NASDAQ: NUTR) reported results for the fiscal 2013 first quarter ended Dec. 31, 2012. Net sales for the fiscal 2013 first quarter were $49.7 million compared to $46.6 million for the same quarter of fiscal 2012. For the first quarter of fiscal 2013, net income was $3.5 million, or $0.36 diluted earnings per share, compared to net income of $3.4 million, or $0.34 diluted earnings per share, for the same quarter of fiscal 2012.

Operating cash flow for the fiscal 2013 first quarter was $6.8 million compared to $7.6 million for the same period of fiscal 2012. The fiscal 2013 first quarter operating cash flow, combined with net borrowings of $6.0 million, was primarily used to pay a special cash dividend to stockholders on December 28, 2012 totaling $9.8 million and to invest $2.2 million in purchases of property, plant and equipment and $1.2 million in purchases of common stock for treasury.

Bill Gay, chairman and chief executive officer, commented, "Our fiscal 2013 first quarter net sales growth of $3.1 million came principally from fiscal 2012 acquisitions and increased branded domestic sales. International branded sales were flat overall; however, this appeared to be a positive sign considering challenging world economic conditions. Management is encouraged by the incremental sales growth we experienced in many of the health and natural food stores we serve, particularly since it occurred during a historically slow quarter. EBITDA continued to grow and net income improved despite an increase in our effective tax rate. We expect that our ongoing efforts to innovate, control material costs, reduce labor expenses and streamline our manufacturing, marketing and sales infrastructure should provide improved results throughout this calendar year."

Mr. Gay stated, "For the last twenty years, management has believed that an undeviating focus on pursuing our established long-term business strategy is the best way to create and sustain value for stockholders. First, we have aimed to increase market share by building a superior marketing and sales organization that takes measured risks and executes consistently. Second, our goal is to increase market share by making strategic acquisitions that fulfill customer needs and are synergistic to our current brands and product offerings. Third, we strive to increase market share by expanding into complimentary natural product channels and international markets. We have pursued this strategy, with the support of our Board and stockholders, by consistently focusing on achieving excellence during both strong and weak economic cycles and by providing management with appropriate financial incentives based on balanced net sales growth and EBITDA performance targets. Additionally, we have enhanced stockholder returns by repurchasing stock in the open market at reasonable multiples. Our Board, stockholders and employees are very much appreciated and we look forward to another twenty years."

 

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