PARK CITY, Utah, Aug. 2 /PRNewswire-FirstCall/ -- Nutraceutical International Corporation (Nasdaq: NUTR) today reported results for the fiscal 2002 third quarter ended June 30, 2002.
Net sales for the third quarter were $29.5 million compared to $26.7 million for the same quarter of fiscal 2001. For the third quarter, net income was $4.2 million compared to $2.0 million for the same quarter of fiscal 2001. Third quarter diluted earnings per share were $0.36 compared to $0.18 in the same quarter of fiscal 2001. In the third quarter, the Company recognized pre-tax other income of $1.8 million ($1.1 million after tax effect), or $0.10 per share as diluted earnings after tax, for payment received in settlement of price-fixing litigation to which the Company is a plaintiff.
Net sales for the nine months ended June 30, 2002 were $81.6 million compared to $79.0 million for the same nine-month period of fiscal 2001. During this nine-month period, net income before change in accounting principle was $9.5 million compared to $5.1 million during the same prior-year period. Diluted earnings per share before change in accounting principle were $0.85 compared to $0.47 during the same prior-year period.
Bill Gay, chairman and chief executive officer, commented, "The increases in sales and net income during the third quarter reflect market and operating improvements in our core branded business as well as contributions from our recently acquired neighborhood natural food markets. We are pleased with the continued strength of our balance sheet, earnings and cash flow during the first nine months of this fiscal year. Management continues to seek ways to leverage the Company's strengths and further improve our financial performance."
Nutraceutical is one of the nation's largest manufacturers and marketers of quality branded nutritional supplements sold to health and natural food stores. The Company sells its branded products under the brand names Solaray(R), KAL(R), NaturalMax(R), VegLife(R), Premier One(R), Sunny Green(TM), Natural Sport(R), ActiPet(R), Action Labs(R) and Thompson(R) to health and natural food stores in the United States, and to distributors and stores worldwide. Under the name Woodland Publishing(TM), the Company publishes, prints and markets a line of books and booklets to, among others, book distributors, national retail bookstores and health and natural food stores. The Company manufactures and/or distributes one of the broadest branded product lines in the industry with over 2,500 stock keeping units (SKUs), including over 400 SKUs exclusively sold internationally. The Company believes that as a result of its emphasis on innovation, quality, loyalty, education and customer service, the Company's brands are widely recognized in health and natural food stores and among their customers.
In addition to its branded products, the Company manufactures bulk materials for use in its own products and for sale to other manufacturers and marketers in the nutritional supplement industry under the trade names Monarch Nutritional Laboratories(TM) and Great Basin Botanicals(TM). The Company also operates neighborhood natural food markets.
The statements contained in this release, including those regarding the Company's business strategy, cost improvements, industry performance and the impact of these activities on the Company's future success, and all other statements that are not purely historical, are forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Many of the factors that will determine the Company's financial results are beyond the ability of the Company to control or predict. These factors include, among other things, changing domestic and international market and political conditions, product competition, the nature of product development, adverse publicity regarding the consumption of nutritional supplements, changes in laws and regulations, adequacy and availability of insurance coverage, availability of raw materials, dependence on distributors and customers, litigation, limitations on future financings, increased costs, the Company's ability to manufacture its products efficiently, sales and earnings volatility, acts of war and terrorist activities, and the uncertainties relating to acquisitions. Actual events or the Company's actual results could differ materially from those indicated in the forward-looking statements contained in this press release. All such forward-looking statements are based upon information available to the Company as of the date hereof, and the Company disclaims any intention or obligation to update any forward-looking statements contained herein. For further details and a discussion of these risks and uncertainties, see the Company's SEC filings, which are updated from time to time, copies of which are available upon request from the Company at 435-655-6106.