Nutraceutical International Corporation ( NUTR) today reported results for the fiscal 2010 first quarter ended December 31, 2009. Net sales for the fiscal 2010 first quarter were $44.8 million compared to $39.6 million for the same quarter of fiscal 2009. For the first quarter of fiscal 2010, net income was $3.9 million, or $0.37 diluted earnings per share, compared to net income of $3.1 million, or $0.28 diluted earnings per share, for the same quarter of fiscal 2009.
Operating cash flow for the fiscal 2010 first quarter ended December 31, 2009 was $6.0 million compared to $3.1 million for the same period of fiscal 2009. This operating cash flow, combined with net borrowings of $12.0 million, was primarily used to invest $5.2 million in purchases of property and equipment, $11.6 million in the acquisitions of branded natural product businesses and $2.2 million in repurchases of common stock.
Bill Gay, chairman and chief executive officer, commented, "In spite of a lethargic economic environment, we started off fiscal 2010 with a solid first quarter. Net sales increased significantly because of acquisitions completed over the last six months. Additionally, both domestic and international sales of our branded products grew year over year. EBITDA, cash flow and net income expanded in the first quarter as stronger sales allowed us to leverage our general and administrative cost structure."
Mr. Gay continued, "Our recent acquisitions have enhanced our offerings of liquid and powdered nutritional supplements and health and beauty products. We believe our expanded product offerings provide regional opportunities for our marketing and sales organization to gain additional shelf space and better serve our customers. Operationally, we will continue to cut controllable expenses and further integrate our acquisitions. We continue to believe that our core health and natural food store customers are regaining confidence in their businesses and we remain positive about our prospects for 2010."