Nutraceutical International Corporation reported results for the fiscal 2011 third quarter ended June 30, 2011. Net sales for the fiscal 2011 third quarter were $47.5 million compared to $44.5 million for the same quarter of fiscal 2010. For the third quarter of fiscal 2011, net income was $3.9 million, or $0.38 diluted earnings per share, compared to net income of $3.8 million, or$0.36 diluted earnings per share, for the same quarter of fiscal 2010.
Net sales for the nine months ended June 30, 2011 were $142.2 million compared to $137.2 million for the same period in fiscal 2010. For the nine months ended June 30, 2011, net income was $12.4 million, or $1.19 diluted earnings per share, compared to net income of $12.8 million, or $1.22 diluted earnings per share, for the same period of fiscal 2010.
Operating cash flow for the nine months ended June 30, 2011 was $21.3 million compared to $13.3 million for the same period of fiscal 2010. This operating cash flow was primarily used to invest $9.3 million in acquisitions of branded natural product businesses, $9.2 million in purchases of property and equipment, $1.9 million in repurchases of common stock and $1.0 million to repay net borrowings on the Company's revolving credit facility.
Bill Gay, chairman and chief executive officer, commented, "We are pleased with our fiscal 2011 third quarter net sales and net income growth. Cash flow and EBITDA remained strong despite ongoing expenses associated with the integration of our recently acquired businesses. Management continues to focus on controllable expenses in an effort to offset and balance increases associated with utilities, freight and labor. In this slow-growth environment, acquisitions that are synergistic to our business model remain critical to our long-term success."
Mr. Gay continued, "The business uncertainties associated with the economy have continued to unfavorably impact the perspectives of many of our primary health food store retailers. Fortunately, long-term loyal consumers of our brands remain eager for the health benefits our products provide them. Management believes this dichotomy will continue as long as there are no additional economic shocks. We intend to aggressively promote and market our brands and look for additional ways to reduce or hold costs. Management remains optimistic about its ability to grow the company and appreciates all those stakeholders that support us in this effort."
We are an integrated manufacturer, marketer, distributor and retailer of branded nutritional supplements and other natural products sold primarily to and through domestic health and natural food stores. Internationally, we market and distribute branded nutritional supplements and other natural products to and through health and natural product distributors and retailers. Our core business strategy is to acquire, integrate and operate businesses in the natural products industry that manufacture, market and distribute branded nutritional supplements. We believe that the consolidation and integration of these acquired businesses provides ongoing financial synergies through increased scale and market penetration, as well as strengthened customer relationships.
We manufacture and sell nutritional supplements and other natural products under numerous brands includingSolaray®, KAL®, Nature's Life®, LifeTime®, Natural Balance®, bioAllers®, Herbs for Kids™, NaturalCare®,Health from the Sun®, Life-flo®, Organix South®, Pioneer® and Monarch Nutraceuticals™.
We own neighborhood natural food markets, which operate under the trade names The Real Food Company™,Thom's Natural Foods™ and Cornucopia Community Market™. We also own health food stores, which operate under the trade names Fresh Vitamins™ and Granola's™.
We manufacture and/or distribute one of the broadest branded product lines in the industry with over 5,500 SKUs, including over 700 SKUs sold internationally. We believe that as a result of our emphasis on innovation, quality, loyalty, education and customer service, our brands are widely recognized in health and natural food stores and among their customers.