Nutraceutical Reports Fourth Quarter and Year End Results

PARK CITY, Utah, Dec. 12 /PRNewswire-FirstCall/ -- Nutraceutical
International Corporation (Nasdaq: NUTR) today reported results for the fourth
quarter and year ended September 30, 2002.

Net sales for the fiscal 2002 fourth quarter were $29.3 million compared
to $24.6 million for the same quarter of fiscal 2001. For the fourth quarter,
net income was $2.8 million compared to $1.9 million for the same quarter of
fiscal 2001. Fourth quarter diluted earnings per share were $0.25 compared to
$0.17 in the same quarter of fiscal 2001. In the fourth quarter, the Company
recognized pre-tax other income of $0.3 million ($0.2 million after tax
effect), or $0.02 per share as diluted earnings after tax, for payment
received in settlement of price-fixing litigation to which the Company was a

Net sales for the fiscal year ended September 30, 2002 were $110.9 million
compared to $103.6 million for fiscal 2001. During fiscal 2002, income before
change in accounting principle was $12.4 million compared to $7.0 million
during fiscal 2001. Diluted earnings per share before change in accounting
principle were $1.09 compared to $0.64 during fiscal 2001. During fiscal
2002, the Company recognized pre-tax other income of $2.9 million
($1.8 million after tax effect), or $0.16 per share as diluted earnings after
tax, for payment received in settlement of price-fixing litigation to which
the Company was a plaintiff.

Bill Gay, chairman and chief executive officer, commented, "We are pleased
with the Company's most recent quarter and the overall results for fiscal
2002. It was great to have a solid year despite tough economic and nutrition
industry conditions, and we are honored that we were selected by Forbes
Magazine as one of The 200 Best Small Companies in America for 2002. The
increases in sales and income reflect moderate improvements in our core
domestic and international branded business as well as contributions from our
new neighborhood natural food markets, which were acquired in mid-2002. We
are also pleased with the continued strength of our balance sheet and cash
flow. During fiscal 2002, the Company reduced inventories, made investments
for the future and repaid $13.0 million in outstanding bank debt. As we move
forward into continuing economic and industry uncertainty in 2003,
management's focus is to leverage our strategic and financial strengths and to
continue to make operational improvements."

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 2,600 stock keeping units
(SKUs), including over 600 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 Securities and Exchange Commission ("SEC") encourages companies to
disclose forward-looking information so that investors can better understand a
company's future prospects and make informed investment decisions. Any
statements contained herein that are not statements of historical fact may be
deemed to be forward-looking statements. Without limitation, the words "may,"
"will," "should," "believes," "anticipates," "plans," "expects," "intends" and
similar expressions are intended to identify forward-looking statements,
although not all forward-looking statements contain these words. There are a
number of important factors that could cause actual events or the Company's
actual results to differ materially from those indicated by such
forward-looking statements, including, without limitation, (i) changing
domestic and international market and political conditions; (ii) interruption
of business or negative impact on sales and earnings due to acts of war,
terrorism, bio-terrorism, civil unrest or disruption of mail service; (iii)
changes in laws and regulations, including adverse federal, state or foreign
legislation or regulation or adverse determinations or actions by regulators;
(iv) import/export controls with respect to products sold into foreign
markets, as well as other restrictions on the sale of the Company's products
in such countries; (v) the unavailability of or interruption in the supply of
utilities, including electricity and telecommunications; (vi) slow or negative
growth in the nutritional supplement industry; (vii) increased product
competition; (viii) adverse publicity regarding the consumption of nutritional
supplements; (ix) increased costs, including raw material and labor costs; (x)
the inability of the Company to gain and/or hold market share of its health
and natural food store customers and bulk material customers; (xi) loss or
retirement of key members of management; (xii) inability of the Company to
successfully implement its business strategy or plan or otherwise manage
growth, including the Company's ability to locate and consummate advantageous
acquisitions, or otherwise integrate acquired operations, including the
ability to retain customers of existing and acquired operations; (xiii)
product development efforts and consumer acceptance of the Company's products;
(xiv) the absence of clinical trials for many of the Company's products; (xv)
availability and price of raw materials; (xvi) the Company's ability to
manufacture its products efficiently; (xvii) the mix of the Company's products
and their related profit margins; (xviii) dependence on distributors and
customers; (xix) sales and earnings volatility; (xx) adequacy and availability
of insurance coverage, and any losses or damages sustained by the Company not
covered by insurance; (xxi) exposure to and expense of prosecuting, defending
and/or resolving and defending claims or litigation, including but not limited
to product liability claims, class action suits, stockholder derivative suits,
patent or trademark infringements suits and other litigation which may arise
from time to time; (xxii) other factors discussed in the Company's filings
with the Securities and Exchange Commission or referenced in its press
releases and (xxiii) other factors beyond the Company's control.

In addition, any forward-looking statements represent the Company's
estimates only as of the day of this press release and should not be relied
upon as representing the Company's estimates as of any subsequent date. No
assurance can be given that the future results covered by such forward-looking
statements will be achieved and readers are cautioned not to place undue
reliance on forward-looking statements. While the Company may elect to update
forward-looking statements at some point in the future, the Company
specifically disclaims any obligation to do so. 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.

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