Nutraceutical Reports Fiscal 2017 Q3 Results

PARK CITY, Utah, July 27, 2017/PRNewswire/—Nutraceutical International Corporation (NASDAQ:  NUTR) today reported results for the fiscal 2017 third quarter ended June 30, 2017.  Net sales for the fiscal 2017 third quarter were $65.0 million, compared to $60.8 million for the same quarter of fiscal 2016.  For the third quarter of fiscal 2017, net income was $1.9 million, or $0.20 diluted earnings per share, compared to net income of $6.0 million, or $0.65 diluted earnings per share, for the same quarter of fiscal 2016.  Net income for the third quarter of fiscal 2017 included costs of $2.6 million, or $0.28 per diluted share, related to entering into a definitive merger agreement to be acquired by an affiliate of HGGC, LLC (“HGGC”), a leading middle-market private equity firm.

Net sales for the nine months ended June 30, 2017 were $182.8 million, compared to $176.3 million for the same period of fiscal 2016.  For the nine months ended June 30, 2017, net income was $10.5 million, or $1.14 diluted earnings per share, compared to net income of $14.9 million, or $1.59 diluted earnings per share, for the same period of fiscal 2016.  Net income for the nine months ended June 30, 2017 included costs of $2.8 million, or $0.30 per diluted share, related to the definitive merger agreement.

Operating cash flow for the nine months ended June 30, 2017 was $16.9 million, compared to $23.5 million for the same period of fiscal 2016.  The operating cash flow for the nine months ended June 30, 2017, combined with net borrowings of $7.0 million and existing cash, was primarily used to invest $17.7 million in the acquisition of Zhou Nutrition, to invest $6.5 million in purchases of property, plant and equipment and to pay cash dividends to stockholders of $2.3 million.

Bill Gay, chairman and chief executive officer, commented, “Our fiscal 2017 third quarter net sales growth of 6.8% was primarily driven by our April 2017 acquisition of Zhou Nutrition.  Gross profit remained solid at 51.4% for the third quarter.  Net income and Adjusted EBITDA for the third quarter were impacted by merger-related costs of $2.6 million.  Also, the third quarter included $1.7 million in costs related to the write up of Zhou Nutrition inventory to fair value and $0.4 million in severance costs related to the on-going re-alignment of our marketing, sales and administrative groups. Most channels we serve remain extremely competitive and many channels are evolving due in part to changes in consumer buying patterns.”

Mr. Gay continued, “As always, we remain committed to our employees, to our customers and to our world-wide consumers. We also want to thank our stockholders for their long-term support of our business strategy.”

 

ABOUT NUTRACEUTICAL

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, including Solaray®, KAL®, Dynamic Health®, Nature’s Life®, LifeTime®, Natural Balance®, NaturalCare®, Health from the Sun®, Zhou Nutrition®, Pioneer®, Nutra BioGenesis®, Life-flo®, Organix South®, Heritage Store® and Monarch Nutraceuticals®.

We own neighborhood natural food markets, which operate under the trade names The Real Food Company™, Thom’s Natural Foods™, Cornucopia Community Market™ and Granola’s®.  We also own health food stores, which operate under the trade name Fresh Vitamins®.

We manufacture and/or distribute one of the broadest branded product lines in the industry, with approximately 7,500 SKUs, including approximately 750 SKUs exclusively 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.

 

ADDITIONAL INFORMATION AND WHERE TO FIND IT

This Press Release may be deemed solicitation material in respect of the proposed acquisition of Nutraceutical by an affiliate of HGGC (the “Merger”). In connection with the Merger, Nutraceutical filed a definitive proxy statement on Schedule 14A with the Securities and Exchange Commission (the “SEC”) on July 24, 2017, and furnished the proxy statement to Nutraceutical’s stockholders beginning on July 24, 2017.  Additionally, Nutraceutical will file other relevant materials with the SEC in connection with the proposed transaction.

The materials to be filed by Nutraceutical with the SEC may be obtained free of charge at the SEC’s web site at www.sec.gov. In addition, stockholders also may obtain free copies of the proxy statement from Nutraceutical by contacting Nutraceutical Investor Relations at 1400 Kearns Blvd., 2nd Floor, Park City, UT 84060, telephone number (435) 655-6106 or investor@nutraceutical.com. INVESTORS AND STOCKHOLDERS OF THE COMPANY ARE URGED TO READ THE PROXY STATEMENT AND THE OTHER RELEVANT MATERIALS WHEN THEY BECOME AVAILABLE BEFORE MAKING ANY VOTING OR INVESTMENT DECISION WITH RESPECT TO THE PROPOSED MERGER BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT THE MERGER AND THE PARTIES TO THE MERGER

 

PARTICIPANTS IN THE SOLICITATION

Nutraceutical and its directors, executive officers and other members of management and employees, under the SEC rules, may be deemed to be participants in the solicitation of proxies of Nutraceutical’s stockholders in connection with the proposed Merger. Investors and security holders may obtain more detailed information regarding the names, affiliations and interests of certain of Nutraceutical’s executive officers and directors in the solicitation by reading the proxy statement for its 2017 annual meeting of stockholders and the proxy statement and other relevant materials which may be filed with the SEC in connection with the Merger when and if they become available. Information concerning the interests of Nutraceutical’s participants in the solicitation, which may, in some cases, be different than those of its stockholders generally, are set forth in the proxy statement relating to the Merger. Additional information regarding Nutraceutical’s executive officers and directors in the solicitation is available by reading Nutraceutical’s proxy statement for its 2017 annual meeting of stockholders.

 

FORWARD LOOKING STATEMENTS

This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to our financial condition, results of operations and business as well as with respect to the Merger, including the expected timing of the completion of the Merger and the ability to complete the Merger. These forward-looking statements can be identified by the use of terms such as “believe,” “expects,” “plan,” “intend,” “may,” “will,” “should,” “can,” or “anticipates,” or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause industry trends, our actual results of operations or the actual results of the Merger to be materially different from any future results expressed or implied by these statements.  Important factors that may cause our results to differ from these forward-looking statements include, but are not limited to: (i) changes in or new government regulations or increased enforcement of the same, including adverse determinations by regulators; (ii) unavailability of desirable acquisitions, inability to complete them or inability to integrate them; (iii) increased costs, including from increased raw material or energy prices; (iv) changes in general worldwide economic or political conditions; (v) adverse publicity or negative consumer perception regarding nutritional supplements; (vi) issues with obtaining raw materials of adequate quality or quantity; (vii) litigation and claims, including product liability, intellectual property and other types; (viii) disruptions from or following acquisitions including the loss of customers; (ix) increased competition; (x) slow or negative growth in the nutritional supplement industry or the healthy foods channel; (xi) the loss of key personnel or the inability to manage our operations efficiently; (xii) problems with information management systems, manufacturing efficiencies and operations, including system interruptions and security/cybersecurity breaches; (xiii) insurance coverage issues; (xiv) the volatility of the stock market generally and of our stock specifically; (xv) increases in the cost of borrowings or unavailability of additional debt or equity capital, or both, or fluctuations in foreign currencies; and (xvi) interruption of business or negative impact on sales and earnings due to acts of God, acts of war, terrorism, bio-terrorism, civil unrest and other factors outside of our control. In addition, the actual results of the Merger could vary materially as a result of number of factors, including, but not limited to: (i) the possibility that competing offers will be made; (ii) the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement; and (iii) the inability to complete the Merger due to the failure to obtain stockholder approval for the Merger or the failure to satisfy other conditions to completion of the Merger. Other factors that may cause actual results of operations or the results of the Merger to differ materially include those set forth in the reports that Nutraceutical files from time to time with the SEC, including its annual report on Form 10-K for the year ended September 30, 2016 and quarterly and current reports on Form 10-Q and 8-K. These forward-looking statements reflect Nutraceutical’s expectations as of the date of this press release. Nutraceutical undertakes no obligation to update the information provided herein. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date hereof.

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Nutraceutical Reports Fiscal 2017 Q2 Results

PARK CITY, Utah, Apr 27, 2017/PRNewswire/—Nutraceutical International Corporation (NASDAQ:  NUTR) today reported results for the fiscal 2017 second quarter ended March 31, 2017.  Net sales for the fiscal 2017 second quarter were $61.2 million, compared to $59.5 million for the same quarter of fiscal 2016.  For the second quarter of fiscal 2017, net income was $4.5 million, or $0.48 diluted earnings per share, compared to net income of $4.6 million, or $0.49 diluted earnings per share, for the same quarter of fiscal 2016.

Net sales for the six months ended March 31, 2017 were $117.8 million, compared to $115.5 million for the same period of fiscal 2016.  For the six months ended March 31, 2017, net income was $8.7 million, or $0.94 diluted earnings per share, compared to net income of $8.9 million, or $0.94 diluted earnings per share, for the same period of fiscal 2016.

Operating cash flow for the six months ended March 31, 2017 was $11.8 million, compared to $17.3 million for the same period of fiscal 2016.  The operating cash flow for the six months ended March 31, 2017, combined with existing cash, was primarily used to repay net borrowings of $7.0 million on the Company’s revolving credit facility, to invest $4.3 million in purchases of property, plant and equipment and to pay a cash dividend to stockholders of $1.2 million.

Bill Gay, chairman and chief executive officer, commented, “Our fiscal 2017 second quarter net sales grew at 2.9% over the prior year, which included growth both domestically and internationally.  Gross profit, net income and Adjusted EBITDA remained solid.  A number of enhanced marketing and sales initiatives were rolled out in the second quarter, which we are hopeful will expand customer sales in several of our business channels throughout 2017 and beyond.  Additional initiatives are in development.”

Mr. Gay continued, “Our pursuit of complementary growth opportunities in alternative natural product channels, like the direct-to-consumer channel, led us to complete the acquisition of the Zhou Nutrition brand in the first week of April.  This approximate $19.8 million acquisition accelerated our entrance into internet sales, which was already a key 2016 internal investment initiative.  During the first quarter of fiscal 2017, we commenced a re-alignment of our marketing, sales and administrative groups.  We expect that by the end of fiscal 2017, the annualized reduction in employee expenses going forward will exceed $4.0 million per year.”

On a final note, Mr. Gay commented that, “The company is remodeling and investing in new equipment for its Tulsa, Oklahoma facility so it can increase efficiency and accommodate the relocation of its New York liquid fill operations. We feel that we are at an exciting juncture for the company’s future.  We believe that the various initiatives we are pursuing present an exceptional opportunity for future organic and new channel growth and we are optimistic about their potential.  Management is appreciative of our stakeholders’ support for our long-term business strategy.”

 

ABOUT NUTRACEUTICAL

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, including Solaray®, KAL®, Dynamic Health®, Nature’s Life®, LifeTime®, Natural Balance®, NaturalCare®, Health from the Sun®, Pioneer®, Nutra BioGenesis®, Life-flo®, Organix South®, Heritage Store® and Monarch Nutraceuticals®.

We own neighborhood natural food markets, which operate under the trade names The Real Food Company™, Thom’s Natural Foods™, Cornucopia Community Market™ and Granola’s®.  We also own health food stores, which operate under the trade name Fresh Vitamins®.

We manufacture and/or distribute one of the broadest branded product lines in the industry, with approximately 7,500 SKUs, including approximately 750 SKUs exclusively 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.

             This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to our financial condition, results of operations and business. These forward-looking statements can be identified by the use of terms such as “believe,” “expects,” “plan,” “intend,” “may,” “will,” “should,” “can,” or “anticipates,” or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause industry trends or our actual results to be materially different from any future results expressed or implied by these statements.  Important factors that may cause our results to differ from these forward-looking statements include, but are not limited to: (i) changes in or new government regulations or increased enforcement of the same, including adverse determinations by regulators; (ii) unavailability of desirable acquisitions, inability to complete them or inability to integrate them; (iii) increased costs, including from increased raw material or energy prices; (iv) changes in general worldwide economic or political conditions; (v) adverse publicity or negative consumer perception regarding nutritional supplements; (vi) issues with obtaining raw materials of adequate quality or quantity; (vii) litigation and claims, including product liability, intellectual property and other types;  (viii) disruptions from or following acquisitions including the loss of customers; (ix) increased competition; (x) slow or negative growth in the nutritional supplement industry or the healthy foods channel; (xi) the loss of key personnel or the inability to manage our operations efficiently; (xii) problems with information management systems, manufacturing efficiencies and operations, including system interruptions and security/cybersecurity breaches; (xiii) insurance coverage issues; (xiv) the volatility of the stock market generally and of our stock specifically; (xv) increases in the cost of borrowings or unavailability of additional debt or equity capital, or both, or fluctuations in foreign currencies; and (xvi) interruption of business or negative impact on sales and earnings due to acts of God, acts of war, terrorism, bio-terrorism, civil unrest and other factors outside of our control.  Copies of our SEC reports are available upon request from our investor relations department or may be obtained at the SEC’s website (www.sec.gov).

Nutraceutical Reports Fiscal 2017 Q1 Results

PARK CITY, Utah, Jan 26, 2017/PRNewswire/—Nutraceutical International Corporation (NASDAQ:  NUTR) today reported results for the fiscal 2017 first quarter ended December 31, 2016.  Net sales for the fiscal 2017 first quarter were $56.6 million, compared to $56.0 million for the same quarter of fiscal 2016.  For the first quarter of fiscal 2017, net income was $4.2 million, or $0.46 diluted earnings per share, compared to net income of $4.2 million, or $0.45 diluted earnings per share, for the same quarter of fiscal 2016.

Operating cash flow for the fiscal 2017 first quarter was $4.9 million, compared to $6.9 million for the same quarter of fiscal 2016.  The fiscal 2017 first quarter operating cash flow, combined with existing cash, primarily was used to repay net borrowings of $4.0 million on the Company’s revolving credit facility and to invest $1.3 million in purchases of property, plant and equipment.

Bill Gay, chairman and chief executive officer, commented, “Our fiscal 2017 first quarter net sales, gross profit and Adjusted EBITDA all remained strong and reflect the continued success of our overall business strategy, which includes a focus on maintaining and growing our core branded business while continuing to acquire and integrate new brands.  Management is hopeful that financial improvements may be realized from capital investments and operational consolidations at certain of its manufacturing facilities by the end of this calendar year.  During the remainder of fiscal 2017, a key management focus will be on increasing market share in the health and natural food stores we serve through enhancements to our sales and marketing programs.  We also continue to pursue expansion and growth opportunities into complementary natural product channels including internet retailers and the professional and direct-to-consumer channels.  Management continually reviews our cost structure with a focus on reducing controllable expenses and improving efficiencies in all areas of the company.  We appreciate the long-term support of our customers and stockholders as we pursue our business strategy and strive for continued financial success.”

 

ABOUT NUTRACEUTICAL

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, including Solaray®, KAL®, Dynamic Health®, Nature’s Life®, LifeTime®, Natural Balance®, NaturalCare®, Health from the Sun®, Pioneer®, Nutra BioGenesis®, Life-flo®, Organix South®, Heritage Store® and Monarch Nutraceuticals®.

We own neighborhood natural food markets, which operate under the trade names The Real Food Company™, Thom’s Natural Foods™, Cornucopia Community Market™ and Granola’s®.  We also own health food stores, which operate under various trade names, including Fresh Vitamins® and Peachtree Natural Foods®.

We manufacture and/or distribute one of the broadest branded product lines in the industry, with approximately 7,500 SKUs, including approximately 750 SKUs exclusively 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.

             This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to our financial condition, results of operations and business. These forward-looking statements can be identified by the use of terms such as “believe,” “expects,” “plan,” “intend,” “may,” “will,” “should,” “can,” or “anticipates,” or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause industry trends or our actual results to be materially different from any future results expressed or implied by these statements.  Important factors that may cause our results to differ from these forward-looking statements include, but are not limited to: (i) changes in or new government regulations or increased enforcement of the same, including adverse determinations by regulators; (ii) unavailability of desirable acquisitions, inability to complete them or inability to integrate them; (iii) increased costs, including from increased raw material or energy prices; (iv) changes in general worldwide economic or political conditions; (v) adverse publicity or negative consumer perception regarding nutritional supplements; (vi) issues with obtaining raw materials of adequate quality or quantity; (vii) litigation and claims, including product liability, intellectual property and other types;  (viii) disruptions from or following acquisitions including the loss of customers; (ix) increased competition; (x) slow or negative growth in the nutritional supplement industry or the healthy foods channel; (xi) the loss of key personnel or the inability to manage our operations efficiently; (xii) problems with information management systems, manufacturing efficiencies and operations, including system interruptions and security/cybersecurity breaches; (xiii) insurance coverage issues; (xiv) the volatility of the stock market generally and of our stock specifically; (xv) increases in the cost of borrowings or unavailability of additional debt or equity capital, or both, or fluctuations in foreign currencies; and (xvi) interruption of business or negative impact on sales and earnings due to acts of God, acts of war, terrorism, bio-terrorism, civil unrest and other factors outside of our control.  Copies of our SEC reports are available upon request from our investor relations department or may be obtained at the SEC’s website (www.sec.gov).

Nutraceutical Announces Quarterly Dividend

PARK CITY, Utah, Dec 1, 2016/PRNewswire/—Nutraceutical International Corporation (NASDAQ:  NUTR) today announced that its Board of Directors has declared a quarterly cash dividend on Nutraceutical International Corporation common stock.  The declared quarterly dividend of $0.125 per share is payable on January 5, 2017 to stockholders of record on December 20, 2016.

Bill Gay, chairman and chief executive officer, commented, “Our business fundamentals and cash flows remain strong.  The payment of a quarterly cash dividend allows us to return some cash to our stockholders while still maintaining sufficient capital to meet our strategic objectives.”

ABOUT NUTRACEUTICAL

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, including Solaray®, KAL®, Dynamic Health®, Nature’s Life®, LifeTime®, Natural Balance®, NaturalCare®, Health from the Sun®, Pioneer®, Nutra BioGenesis®, Life-flo®, Organix South®, Heritage Store® and Monarch Nutraceuticals®.

We own neighborhood natural food markets, which operate under the trade names The Real Food Company™, Thom’s Natural Foods™, Cornucopia Community Market™ and Granola’s®.  We also own health food stores, which operate under various trade names, including Fresh Vitamins® and Peachtree Natural Foods®.

We manufacture and/or distribute one of the broadest branded product lines in the industry, with approximately 7,500 SKUs, including approximately 750 SKUs exclusively 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.

            This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to our financial condition, results of operations and business. These forward-looking statements can be identified by the use of terms such as “believe,” “expects,” “plan,” “intend,” “may,” “will,” “should,” “can,” or “anticipates,” or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause industry trends or our actual results to be materially different from any future results expressed or implied by these statements.  Important factors that may cause our results to differ from these forward-looking statements include, but are not limited to: (i) changes in or new government regulations or increased enforcement of the same, including adverse determinations by regulators; (ii) unavailability of desirable acquisitions, inability to complete them or inability to integrate them; (iii) increased costs, including from increased raw material or energy prices; (iv) changes in general worldwide economic or political conditions; (v) adverse publicity or negative consumer perception regarding nutritional supplements; (vi) issues with obtaining raw materials of adequate quality or quantity; (vii) litigation and claims, including product liability, intellectual property and other types;  (viii) disruptions from or following acquisitions including the loss of customers; (ix) increased competition; (x) slow or negative growth in the nutritional supplement industry or the healthy foods channel; (xi) the loss of key personnel or the inability to manage our operations efficiently; (xii) problems with information management systems, manufacturing efficiencies and operations, including system interruptions and security/cybersecurity breaches; (xiii) insurance coverage issues; (xiv) the volatility of the stock market generally and of our stock specifically; (xv) increases in the cost of borrowings or unavailability of additional debt or equity capital, or both, or fluctuations in foreign currencies; and (xvi) interruption of business or negative impact on sales and earnings due to acts of God, acts of war, terrorism, bio-terrorism, civil unrest and other factors outside of our control.  Copies of our SEC reports are available upon request from our investor relations department or may be obtained at the SEC’s website (www.sec.gov).

Nutraceutical Reports Fiscal 2016 Year End Results

PARK CITY, Utah, Nov 17, 2016/PRNewswire/—Nutraceutical International Corporation (NASDAQ: NUTR) today reported results for the fiscal 2016 fourth quarter ended September 30, 2016. Net sales for the fiscal 2016 fourth quarter were $56.7 million, compared to $53.6 million for the same quarter of fiscal 2015. For the fourth quarter of fiscal 2016, net income was $3.8 million, or $0.41 diluted earnings per share, compared to net income of $3.4 million, or $0.35 diluted earnings per share, for the same quarter of fiscal 2015. Net income for the fourth quarter of fiscal 2015 included non-cash intangible asset impairment charges related to certain tradenames of $1.1 million, net of tax, or $0.12 per diluted share.

Net sales for the fiscal year ended September 30, 2016 were $233.0 million, compared to $216.5 million for fiscal 2015. For the fiscal year ended September 30, 2016, net income was $18.7 million, or $2.00 diluted earnings per share, compared to net income of $15.3 million, or $1.59 diluted earnings per share (including the intangible asset impairment charges), for fiscal 2015.

Operating cash flow for the fiscal year ended September 30, 2016 was $32.8 million, compared to $25.0 million for the same period of fiscal 2015. The operating cash flow for the fiscal year ended September 30, 2016, combined with net borrowings of $12.0 million, was primarily used to invest $26.2 million in acquisitions of natural product businesses, $9.0 million in purchases of property, plant and equipment and $7.5 million in purchases of common stock for treasury.

Bill Gay, chairman and chief executive officer, commented, “Our fiscal 2016 net sales grew by $16.5 million, or 7.6%, primarily as a result of the Dynamic Health and Aubrey Organics acquisitions that were completed in the first two quarters of the fiscal year. Fiscal 2016 net income increased by $3.4 million, or 22.2%, and Adjusted EBITDA increased by $4.5 million, or 11.6%, to $43.4 million. We are optimistic that these acquisitions will continue to contribute during fiscal 2017. We continue to pursue potential acquisitions as a core component of our business strategy.”

Mr. Gay continued, “Our strong cash flows and banking relationships should enable management to continue to acquire new brands to strengthen our presence on retailer shelves, purchase stock on the open market– depending on market conditions–and invest capital into our business. During fiscal 2017, management will focus on reducing raw material costs, consolidating facilities and lowering operating costs by reducing controllable expenses and improving operational efficiencies. We continue to develop new products and enhanced product formulations to increase our presence in the healthy foods channel. We have an exceptional marketing and sales organization and additional programs are being developed to motivate our customers and consumers. We appreciate the trust and confidence our customers, employees and stockholders have placed in us.”

ABOUT NUTRACEUTICAL

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, including Solaray®, KAL®, Dynamic Health®, Nature’s Life®, LifeTime®, Natural Balance®, NaturalCare®, Health from the Sun®, Pioneer®, Nutra BioGenesis®, Life-flo®, Organix South®, Heritage Store® and Monarch Nutraceuticals®.
We own neighborhood natural food markets, which operate under the trade names The Real Food Company™, Thom’s Natural Foods™, Cornucopia Community Market™ and Granola’s™. We also own health food stores, which operate under various trade names, including Fresh Vitamins™ and Peachtree Natural Foods®.

We manufacture and/or distribute one of the broadest branded product lines in the industry, with approximately 7,500 SKUs, including approximately 750 SKUs exclusively 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.

This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to our financial condition, results of operations and business. These forward-looking statements can be identified by the use of terms such as “believe,” “expects,” “plan,” “intend,” “may,” “will,” “should,” “can,” or “anticipates,” or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause industry trends or our actual results to be materially different from any future results expressed or implied by these statements. Important factors that may cause our results to differ from these forward-looking statements include, but are not limited to: (i) changes in or new government regulations or increased enforcement of the same, including adverse determinations by regulators; (ii) unavailability of desirable acquisitions, inability to complete them or inability to integrate them; (iii) increased costs, including from increased raw material or energy prices; (iv) changes in general worldwide economic or political conditions; (v) adverse publicity or negative consumer perception regarding nutritional supplements; (vi) issues with obtaining raw materials of adequate quality or quantity; (vii) litigation and claims, including product liability, intellectual property and other types; (viii) disruptions from or following acquisitions including the loss of customers; (ix) increased competition; (x) slow or negative growth in the nutritional supplement industry or the healthy foods channel; (xi) the loss of key personnel or the inability to manage our operations efficiently; (xii) problems with information management systems, manufacturing efficiencies and operations, including system interruptions and security/cybersecurity breaches; (xiii) insurance coverage issues; (xiv) the volatility of the stock market generally and of our stock specifically; (xv) increases in the cost of borrowings or unavailability of additional debt or equity capital, or both, or fluctuations in foreign currencies; and (xvi) interruption of business or negative impact on sales and earnings due to acts of God, acts of war, terrorism, bio-terrorism, civil unrest and other factors outside of our control. Copies of our SEC reports are available upon request from our investor relations department or may be obtained at the SEC’s website (www.sec.gov).

Nutraceutical Reports Fiscal 2016 Q3 Results and Expands Share Repurchase Program

PARK CITY, Utah, July 28, 2016/PRNewswire/—Nutraceutical International Corporation (NASDAQ:  NUTR) today reported results for the fiscal 2016 third quarter ended June 30, 2016.  Net sales for the fiscal 2016 third quarter were $60.8 million, compared to $54.4 million for the same quarter of fiscal 2015.  For the third quarter of fiscal 2016, net income was $6.0 million, or $0.65 diluted earnings per share, compared to net income of $4.5 million, or $0.47 diluted earnings per share, for the same quarter of fiscal 2015.

Net sales for the nine months ended June 30, 2016 were $176.3 million compared to $162.8 million for the same period of fiscal 2015.  For the nine months ended June 30, 2016, net income was $14.9 million, or $1.59 diluted earnings per share, compared to net income of $11.9 million, or $1.24 diluted earnings per share, for the same period of fiscal 2015.

Operating cash flow for the nine months ended June 30, 2016 was $23.5 million, compared to $21.2 million for the same period of fiscal 2015.  The operating cash flow for the nine months ended June 30, 2016, combined with net borrowings of $14.5 million and existing cash, was primarily used to invest $26.2 million in acquisitions of natural product businesses, $6.4 million in purchases of property, plant and equipment and $6.4 million in purchases of common stock for treasury.

Bill Gay, chairman and chief executive officer, commented, “Our fiscal 2016 third quarter net sales grew by 12% primarily as a result of stronger international sales as well as sales from acquisitions completed during this fiscal year.  Third quarter net income increased by $1.5 million and Adjusted EBITDA increased by $2.3 million.  Management believes that the strong results during our last two quarters reflect the leverage and synergies generated from increased net sales.  We are hopeful that our international business will continue to improve during the balance of calendar 2016.  We plan to continue to carefully work through the integration of our fiscal 2016 acquisitions, including completing the transition of operations into company-owned facilities, which will take some period of time to complete.  We are pleased with the overall contributions these acquisitions have produced to date.”

Mr. Gay continued, “We are actively pursuing complementary acquisitions that can leverage our physical and human infrastructure.  The strength of our cash flow and banking relationships should enable management to follow its stated strategy of growing through acquisitions and investing in automation to lower costs.  We are considering a number of internal initiatives that could assist management in limiting labor cost pressures through technology.  We continue to consolidate our manufacturing and branded business operations into company-owned facilities to gain operational efficiencies.  We believe that our branded product portfolio and innovative product formulations, along with our strength in manufacturing, distribution and sales, will continue to provide a solid foundation for the growth of our business in the healthy foods channel and other channels.”

Mr. Gay added, “I am also pleased to announce that on July 26, 2016, our Board of Directors agreed to add an additional one million shares to our previously approved share purchase program, which means the Company is now authorized to buy up to approximately 1.2 million total additional shares of our outstanding common stock.  Under this approved share purchase program, the Company may purchase common stock from time to time on the open market and in individually negotiated transactions.  The amount and timing of any purchases will be dependent upon a number of factors, including the price and availability of the Company’s shares and general market conditions.  The Company currently has approximately 9.2 million shares of its common stock outstanding.  The Company has purchased over 1.3 million shares in the last five fiscal years.  We thank our customers, employees, and stockholders for continuing to support our long-term business strategy.”

 

ABOUT NUTRACEUTICAL

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 provide 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, including Solaray®, KAL®, Dynamic Health™, Nature’s Life®, LifeTime®, Natural Balance®, NaturalCare®, Health from the Sun®, Pioneer®, Nutra BioGenesis™, Life-flo®, Organix South®, Heritage Store® and Monarch Nutraceuticals™.

We own neighborhood natural food markets, which operate under the trade names The Real Food Company™, Thom’s Natural Foods™, Cornucopia Community Market™ and Granola’s™.  We also own health food stores, which operate under various trade names, including Fresh Vitamins™ and Peachtree Natural Foods®.

We manufacture and/or distribute one of the broadest branded product lines in the industry, with approximately 7,500 SKUs, including approximately 750 SKUs exclusively 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.

             This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to our financial condition, results of operations and business. These forward-looking statements can be identified by the use of terms such as “believe,” “expects,” “plan,” “intend,” “may,” “will,” “should,” “can,” or “anticipates,” or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause industry trends or our actual results to be materially different from any future results expressed or implied by these statements.  Important factors that may cause our results to differ from these forward-looking statements include, but are not limited to: (i) changes in or new government regulations or increased enforcement of the same including adverse determinations by regulators; (ii) unavailability of desirable acquisitions, inability to complete them or inability to integrate them; (iii) increased costs, including from increased raw material or energy prices; (iv) changes in general worldwide economic or political conditions; (v) adverse publicity or negative consumer perception regarding nutritional supplements; (vi) issues with obtaining raw materials of adequate quality or quantity; (vii) litigation and claims, including product liability, intellectual property and other types;  (viii) disruptions from or following acquisitions including the loss of customers; (ix) increased competition; (x) slow or negative growth in the nutritional supplement industry or the healthy foods channel; (xi) the loss of key personnel or the inability to manage our operations efficiently; (xii) problems with information management systems, manufacturing efficiencies and operations, including system interruptions and security/cybersecurity breaches; (xiii) insurance coverage issues; (xiv) the volatility of the stock market generally and of our stock specifically; (xv) increases in the cost of borrowings or unavailability of additional debt or equity capital, or both, or fluctuations in foreign currencies; and (xvi) interruption of business or negative impact on sales and earnings due to acts of God, acts of war, terrorism, bio-terrorism, civil unrest and other factors outside of our control.  Copies of our SEC reports are available upon request from our investor relations department or may be obtained at the SEC’s website (www.sec.gov).

Nutraceutical Reports Fiscal 2016 Q2 Results

PARK CITY, Utah, April 28, 2016/PRNewswire/—Nutraceutical International Corporation (NASDAQ:  NUTR) today reported results for the fiscal 2016 second quarter ended March 31, 2016.  Net sales for the fiscal 2016 second quarter were $59.5 million, compared to $55.4 million for the same quarter of fiscal 2015.  For the second quarter of fiscal 2016, net income was $4.6 million, or $0.49 diluted earnings per share, compared to net income of $4.1 million, or $0.43 diluted earnings per share, for the same quarter of fiscal 2015.

Net sales for the six months ended March 31, 2016 were $115.5 million compared to $108.4 million for the same period of fiscal 2015.  For the six months ended March 31, 2016, net income was $8.9 million, or $0.94 diluted earnings per share, compared to net income of $7.4 million, or $0.77 diluted earnings per share, for the same period of fiscal 2015.

Operating cash flow for the six months ended March 31, 2016 was $17.3 million, compared to $11.2 million for the same period of fiscal 2015.  The operating cash flow for the six months ended March 31, 2016, combined with net borrowings of $16.0 million, was primarily used to invest $26.2 million in acquisitions of natural product businesses, $4.0 million in purchases of property, plant and equipment and $3.6 million in purchases of common stock for treasury.

Bill Gay, chairman and chief executive officer, commented, “Fiscal 2016 second quarter net sales grew by 7.4%, Adjusted EBITDA increased by $1.1M, or 10.8%, and we added $0.06 per share to diluted EPS.  Management is pleased with the overall growth and direction of our business and with the gains generated by recent acquisitions.  We are hopeful the softness in certain areas of our international business will improve later in the year.  Management now believes that consolidation synergies from the October 2015 Dynamic Health acquisition will not become fully realized until later in calendar 2017.  Our February 2016 acquisition of Aubrey Organics in Tampa, Florida will enable us to consolidate certain branded offices and manufacturing operations for our personal care business. Both of these new businesses expand our current branded portfolio of products with many unique offerings for our health and natural food store customers.  We are excited about the long-term growth potential these two businesses provide to our company.”

Mr. Gay continued, “Our operating cash flow and banking relationships provide a strong foundation for future acquisitions, investments in property and equipment as well as stock repurchases.  The competitive and regulatory environment of our industry requires us to continually invest in updating and improving our manufacturing equipment and facilities. Management remains focused on reducing costs and improving margins in all areas of our business through process and technology innovation as well as facility integration and consolidation. Additionally, through the process of reviewing and completing acquisitions, we are continually evaluating opportunities to leverage lower-cost markets to operate parts of our business and further reduce operating costs.  We thank our customers, employees, and stockholders for the support of our long-term business strategy.”

 

ABOUT NUTRACEUTICAL

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 provide 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, including Solaray®, KAL®, Dynamic Health™, Nature’s Life®, LifeTime®, Natural Balance®, NaturalCare®, Health from the Sun®, Pioneer®, Nutra BioGenesis™, Life-flo®, Organix South®, Heritage Store® and Monarch Nutraceuticals™.

We own neighborhood natural food markets, which operate under the trade names The Real Food Company™, Thom’s Natural Foods™, Cornucopia Community Market™ and Granola’s™.  We also own health food stores, which operate under various trade names, including Fresh Vitamins™ and Peachtree Natural Foods®.

We manufacture and/or distribute one of the broadest branded product lines in the industry, with approximately 7,500 SKUs, including approximately 750 SKUs exclusively 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.

             This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to our financial condition, results of operations and business. These forward-looking statements can be identified by the use of terms such as “believe,” “expects,” “plan,” “intend,” “may,” “will,” “should,” “can,” or “anticipates,” or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause industry trends or our actual results to be materially different from any future results expressed or implied by these statements.  Important factors that may cause our results to differ from these forward-looking statements include, but are not limited to: (i) changes in or new government regulations or increased enforcement of the same including adverse determinations by regulators; (ii) unavailability of desirable acquisitions, inability to complete them or inability to integrate them; (iii) increased costs, including from increased raw material or energy prices; (iv) changes in general worldwide economic or political conditions; (v) adverse publicity or negative consumer perception regarding nutritional supplements; (vi) issues with obtaining raw materials of adequate quality or quantity; (vii) litigation and claims, including product liability, intellectual property and other types;  (viii) disruptions from or following acquisitions including the loss of customers; (ix) increased competition; (x) slow or negative growth in the nutritional supplement industry or the healthy foods channel; (xi) the loss of key personnel or the inability to manage our operations efficiently; (xii) problems with information management systems, manufacturing efficiencies and operations, including system interruptions and security/cybersecurity breaches; (xiii) insurance coverage issues; (xiv) the volatility of the stock market generally and of our stock specifically; (xv) increases in the cost of borrowings or unavailability of additional debt or equity capital, or both, or fluctuations in foreign currencies; and (xvi) interruption of business or negative impact on sales and earnings due to acts of God, acts of war, terrorism, bio-terrorism, civil unrest and other factors outside of our control.  Copies of our SEC reports are available upon request from our investor relations department or may be obtained at the SEC’s website (www.sec.gov).

Nutraceutical Reports Fiscal 2016 Q1 Results

PARK CITY, Utah, Jan 28, 2016/PRNewswire/—Nutraceutical International Corporation (NASDAQ:  NUTR) today reported results for the fiscal 2016 first quarter ended December 31, 2015.  Net sales for the fiscal 2016 first quarter were $56.0 million, compared to $53.0 million for the same quarter of fiscal 2015.  For the first quarter of fiscal 2016, net income was $4.2 million, or $0.45 diluted earnings per share, compared to net income of $3.4 million, or $0.35 diluted earnings per share, for the same quarter of fiscal 2015.

Operating cash flow for the fiscal 2016 first quarter was $6.9 million, compared to $3.0 million for the same quarter of fiscal 2015.  The fiscal 2016 first quarter operating cash flow, combined with net borrowings of $16.5 million, was primarily used to invest $19.0 million in an acquisition of a natural product business, $2.1 million in purchases of property, plant and equipment and $1.6 million in purchases of common stock for treasury.

Bill Gay, chairman and chief executive officer, commented, “Our fiscal 2016 first quarter net sales growth of 5.5% was primarily generated from our October 2015 acquisition of Dynamic Health. Operational leverage relating to this acquisition enabled quarterly Adjusted EBITDA to expand by $1.5 million to $10.3 million and net income to increase by $0.8 million to $4.2 million. We are hopeful that future potential synergies from this acquisition will continue to strengthen our business following the relocation of Dynamic Health’s manufacturing operations to Tulsa, OK, which we are targeting for the last half of calendar 2016.”

Mr. Gay stated, “The acquisition and integration of innovative brands like Dynamic Health, which has liquid manufacturing capabilities, is fundamentally important to our long-term growth objectives.  Management seeks to acquire unique brands and products that are complementary to our existing business model and enhance our ability to serve our key customer base, the health and natural food channel.  Dynamic Health’s liquid production expertise expands our product offerings into faster growing product categories such as therapeutic organic fruit juice concentrates, organic and non-organic liquid nutritional supplements, organic liquid consumable juice drinks and organic vegetable drinks.  Business integrations of any size are complex and time-consuming, but we believe we have the management talent and resources to accomplish this relocation and integration while minimizing disruption.”

Mr. Gay continued, “Our balance sheet and cash flows remain strong and this recent purchase will provide a solid base for additional acquisitions over the coming years.  Key stakeholders such as our lending group continue to be supportive of our strategy. The integration of numerous acquisitions over the past 20 plus years has demonstrated the potential of our platform business model.  Our focus remains on identifying acquisition opportunities that offer a unique add-on to our existing product mix.  Equally important is leveraging anticipated operational synergies to achieve our long-term growth and financial objectives.  For over 20 years, our strategy has been to actively acquire quality brands and integrate their operations, which includes centralizing and consolidating distribution, marketing, sales and administrative functions and costs.”

Mr. Gay also stated, “These integration steps have been critical to the long-term success of the business model.  For example, depending on the size of the business acquired, we have made an effort to discontinue underperforming products where possible and we have been successful combining brands into brand collections.  Eliminating or combining duplicative products across brands has the effect of reducing sales slightly while enhancing gross margins. We have also tried to limit product and customer concentrations, which helps reduce excessive financial exposure and volatility.  However, as we have repeated this acquisition and integration process many times over the years, we believe the overall result is becoming more obvious—the creation of a business that has the potential to generate positive returns on a relatively consistent basis, even in difficult environments.  We thank our shareholders, managers, employees and customers for their ongoing support of this effort and of our business.”

 

ABOUT NUTRACEUTICAL

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 provide 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, including Solaray®, KAL®, Dynamic Health™, Nature’s Life®, LifeTime®, Natural Balance®, NaturalCare®, Health from the Sun®, Pioneer®, Nutra BioGenesis™, Life-flo®, Organix South®, Heritage Store® and Monarch Nutraceuticals™.

We own neighborhood natural food markets, which operate under the trade names The Real Food Company™, Thom’s Natural Foods™, Cornucopia Community Market™ and Granola’s™.  We also own health food stores, which operate under various trade names, including Fresh Vitamins™ and Peachtree Natural Foods®.

We manufacture and/or distribute one of the broadest branded product lines in the industry, with approximately 7,500 SKUs, including approximately 750 SKUs exclusively 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.

             This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to our financial condition, results of operations and business. These forward-looking statements can be identified by the use of terms such as “believe,” “expects,” “plan,” “intend,” “may,” “will,” “should,” “can,” or “anticipates,” or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause industry trends or our actual results to be materially different from any future results expressed or implied by these statements.  Important factors that may cause our results to differ from these forward-looking statements include, but are not limited to: (i) changes in or new government regulations or increased enforcement of the same including adverse determinations by regulators; (ii) unavailability of desirable acquisitions, inability to complete them or inability to integrate them; (iii) increased costs, including from increased raw material or energy prices; (iv) changes in general worldwide economic or political conditions; (v) adverse publicity or negative consumer perception regarding nutritional supplements; (vi) issues with obtaining raw materials of adequate quality or quantity; (vii) litigation and claims, including product liability, intellectual property and other types;  (viii) disruptions from or following acquisitions including the loss of customers; (ix) increased competition; (x) slow or negative growth in the nutritional supplement industry or the healthy foods channel; (xi) the loss of key personnel or the inability to manage our operations efficiently; (xii) problems with information management systems, manufacturing efficiencies and operations, including system interruptions and security/cybersecurity breaches; (xiii) insurance coverage issues; (xiv) the volatility of the stock market generally and of our stock specifically; (xv) increases in the cost of borrowings or unavailability of additional debt or equity capital, or both, or fluctuations in foreign currencies; and (xvi) interruption of business or negative impact on sales and earnings due to acts of God, acts of war, terrorism, bio-terrorism, civil unrest and other factors outside of our control.  Copies of our SEC reports are available upon request from our investor relations department or may be obtained at the SEC’s website (www.sec.gov).

Nutraceutical Reports Fiscal 2015 Year End Results

PARK CITY, Utah, Nov 19, 2015/PRNewswire/—Nutraceutical International Corporation (NASDAQ:  NUTR) today reported results for the fiscal 2015 fourth quarter ended September 30, 2015.  Net sales for the fiscal 2015 fourth quarter were $53.6 million, compared to $52.4 million for the same quarter of fiscal 2014.  For the fourth quarter of fiscal 2015, net income was $3.4 million, or $0.35 diluted earnings per share, compared to net income of $3.4 million, or $0.35 diluted earnings per share, for the same quarter of fiscal 2014.

Net sales for the fiscal year ended September 30, 2015 were $216.5 million, compared to $214.5 million for fiscal 2014.  For the fiscal year ended September 30, 2015, net income was $15.3 million, or $1.59 diluted earnings per share, compared to net income of $15.9 million, or $1.62 diluted earnings per share, for fiscal 2014.

In September 2015, the Company decided to implement an expanded brand consolidation plan in an effort to simplify its brand offerings, which should make marketing and sales activities more efficient and facilitate customer ordering.  As part of this plan, the Company determined, as of September 30, 2015, its indefinite-lived tradenames should be assigned finite useful lives.  In connection with this change and the Company’s annual impairment test, non-cash intangible asset impairment charges were recorded totaling $1.8 million ($1.1 million, net of tax, or $0.12 per diluted share), which are included in net income for the fourth quarter and fiscal year ended September 30, 2015.  Net income for the fourth quarter and fiscal year ended September 30, 2014  also included a non-cash intangible asset intangible asset impairment charge related to a tradename of $0.3 million ($0.2 million, net of tax, or $0.02 per diluted share).

Operating cash flow for the fiscal year ended September 30, 2015 was $25.0 million, compared to $20.0 million for fiscal 2014.  The operating cash flow for the fiscal year ended September 30, 2015, combined with existing cash, was primarily used to repay net borrowings of $11.5 million on the Company’s revolving credit facility and to invest $8.6 million in purchases of property, plant and equipment, $5.3 million in purchases of common stock for treasury and $1.3 million in acquisitions of natural product businesses.

Bill Gay, chairman and chief executive officer, commented, “Our fiscal 2015 fourth quarter showed solid improvements in net sales and Adjusted EBITDA.   Acquisitions completed in the last two fiscal years contributed to the net sales growth for fiscal 2015.  International net sales rebounded in the fourth quarter, although for the full fiscal year they still were $1.8 million less than fiscal 2014.  Operational synergies, cost reductions and automation had a positive impact in the fourth quarter.”

Mr. Gay stated, “Net income for the fourth quarter and fiscal year were slightly down primarily due to the $1.8 million non-cash expense relating to our expanded brand consolidation plan.  The consolidation of brands should provide for marketing and operational efficiencies.  Operating cash flows in fiscal 2015 enabled stock repurchases, debt reductions and investments in property and acquisitions for future growth.”

Mr. Gay continued, “In October 2015, we completed the acquisition of Dynamic Health, a liquid manufacturing business in Brooklyn, New York.  This acquisition expands our product offering of organic and nutritional juice concentrates. Dynamic Health’s 100 plus branded products are primarily sold through health food distributors and internet accounts.  Dynamic Health also sells private label products to domestic and international customers.  We are targeting integration of the Dynamic Health business into our Tulsa, Oklahoma manufacturing facility over the next 12-15 months. Dynamic Health’s net sales, which we anticipate will be over $15 million annually, should positively contribute to Adjusted EBITDA during fiscal 2016.”

According to Mr. Gay, “Management is committed to finding additional operational efficiencies in all areas of the company during fiscal 2016, including raw materials, labor and overhead. Management would like to thank our employees and stakeholders for their ongoing support of our long-term business strategy.”

 

ABOUT NUTRACEUTICAL

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 provide 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, including Solaray®, KAL®, Nature’s Life®, LifeTime®, Natural Balance®, NaturalCare®, Health from the Sun®, Pioneer®, Nutra BioGenesis™, Life-flo®, Organix South®, Heritage Store® and Monarch Nutraceuticals™.

We own neighborhood natural food markets, which operate under the trade names The Real Food Company™, Thom’s Natural Foods™, Cornucopia Community Market™ and Granola’s™.  We also own health food stores, which operate under various trade names, including Fresh Vitamins™ and Peachtree Natural Foods®.

We manufacture and/or distribute one of the broadest branded product lines in the industry, with approximately 7,500 SKUs, including approximately 750 SKUs exclusively 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.

            This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to our financial condition, results of operations and business. These forward-looking statements can be identified by the use of terms such as “believe,” “expects,” “plan,” “intend,” “may,” “will,” “should,” “can,” or “anticipates,” or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause industry trends or our actual results to be materially different from any future results expressed or implied by these statements.  Important factors that may cause our results to differ from these forward-looking statements include, but are not limited to: (i) changes in or new government regulations or increased enforcement of the same including adverse determinations by regulators; (ii) unavailability of desirable acquisitions, inability to complete them or inability to integrate them; (iii) increased costs, including from increased raw material or energy prices; (iv) changes in general worldwide economic or political conditions; (v) adverse publicity or negative consumer perception regarding nutritional supplements; (vi) issues with obtaining raw materials of adequate quality or quantity; (vii) litigation and claims, including product liability, intellectual property and other types;  (viii) disruptions from or following acquisitions including the loss of customers; (ix) increased competition; (x) slow or negative growth in the nutritional supplement industry or the healthy foods channel; (xi) the loss of key personnel or the inability to manage our operations efficiently; (xii) problems with information management systems, manufacturing efficiencies and operations, including system interruptions and security/cybersecurity breaches; (xiii) insurance coverage issues; (xiv) the volatility of the stock market generally and of our stock specifically; (xv) increases in the cost of borrowings or unavailability of additional debt or equity capital, or both, or fluctuations in foreign currencies; and (xvi) interruption of business or negative impact on sales and earnings due to acts of God, acts of war, terrorism, bio-terrorism, civil unrest and other factors outside of our control.  Copies of our SEC reports are available upon request from our investor relations department or may be obtained at the SEC’s website (www.sec.gov).

Nutraceutical Reports Fiscal 2015 Q3 Results

PARK CITY, Utah, July 30, 2015/PRNewswire/—Nutraceutical International Corporation (NASDAQ: NUTR) today reported results for the fiscal 2015 third quarter ended June 30, 2015. Net sales for the fiscal 2015 third quarter were $54.4 million compared to $55.6 million for the same quarter of fiscal 2014. For the third quarter of fiscal 2015, net income was $4.5 million, or $0.47 diluted earnings per share, compared to net income of $4.0 million, or $0.41 diluted earnings per share, for the same quarter of fiscal 2014.

Net sales for the nine months ended June 30, 2015 were $162.8 million compared to $162.0 million for the same period of fiscal 2014. For the nine months ended June 30, 2015, net income was $11.9 million, or $1.24 diluted earnings per share, compared to net income of $12.5 million, or $1.27 diluted earnings per share, for the same period of fiscal 2014.

Operating cash flow for the nine months ended June 30, 2015 was $21.2 million compared to $16.1 million for the same period of fiscal 2014. The operating cash flow for the nine months ended June 30, 2015, combined with existing cash, was primarily used to repay net borrowings of $11.0 million on the Company’s revolving credit facility and to invest $6.5 million in purchases of property, plant and equipment, $3.6 million in purchases of common stock for treasury and $1.3 million in acquisitions of natural product businesses.

Bill Gay, chairman and chief executive officer, commented, “Our Adjusted EBITDA, net income and operating cash flow for the third quarter of fiscal 2015 strengthened. The decrease in fiscal 2015 third quarter net sales of 2.2% was primarily related to international customers and, to a lesser extent, private label accounts. International sales continued to be impacted negatively by the stronger U.S. dollar and fewer orders from certain international customers. Our focus on only purchasing the highest quality raw materials means that sourcing and related out-of-stocks continued to be a challenge for our manufacturing operations. Management believes that ongoing synergies from acquisitions and operational changes that have been implemented will enhance our overall results by the end of this calendar year.”

Mr. Gay stated, “Our operating cash flow provided the financial resources required to re-purchase stock, make capital investments, pay down debt and acquire competitive businesses. Management seeks to acquire niche companies that fill gaps in our existing product coverage. Acquisitions remain a key component to our long-term growth.”

Mr. Gay continued, “Larger natural food market chains continue their roll-out in most major US markets. This is requiring the smaller and medium sized health food stores to become more competitive in order to prosper or even survive. While we continue our historical support of these independent health food stores, some are not responding quickly enough and are struggling and facing the choice of closing or selling locations. This is resulting in a pronounced shift of customers to larger natural food stores. Fortunately, the growth of these larger chains seems to be offsetting corresponding declines in smaller stores. We believe that the size and breadth of our brand and product offering should enable us to continue to be a primary supplier for larger stores and that we are positioned to capitalize on this changing marketplace. Management would like to express our appreciation and thanks to our employees and stakeholders for their ongoing support of our company’s long-term growth goals.”

ABOUT NUTRACEUTICAL

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 provide 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, including Solaray®, KAL®, Nature’s Life®, LifeTime®, Natural Balance®, NaturalCare®, Health from the Sun®, Pioneer®, Nutra BioGenesis™, Life-flo®, Organix South®, Heritage Store® and Monarch Nutraceuticals™.
We own neighborhood natural food markets, which operate under the trade names The Real Food Company™, Thom’s Natural Foods™, Cornucopia Community Market™ and Granola’s™. We also own health food stores, which operate under various trade names, including Fresh Vitamins™ and Peachtree Natural Foods®.

We manufacture and/or distribute one of the broadest branded product lines in the industry with over 8,000 SKUs, including approximately 800 SKUs exclusively 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.

This Press Release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 with respect to our financial condition, results of operations and business. These forward-looking statements can be identified by the use of terms such as “believe,” “expects,” “plan,” “intend,” “may,” “will,” “should,” “can,” or “anticipates,” or the negative thereof, or variations thereon, or comparable terminology, or by discussions of strategy. These statements involve known and unknown risks, uncertainties and other factors that may cause industry trends or our actual results to be materially different from any future results expressed or implied by these statements. Important factors that may cause our results to differ from these forward-looking statements include, but are not limited to: (i) changes in or new government regulations or increased enforcement of the same; (ii) unavailability of desirable acquisitions, inability to complete them or inability to integrate them; (iii) increased costs, including from increased raw material or energy prices; (iv) changes in general worldwide economic or political conditions; (v) adverse publicity or negative consumer perception regarding nutritional supplements; (vi) issues with obtaining raw materials of adequate quality or quantity; (vii) litigation and claims, including product liability, intellectual property and other types; (viii) disruptions from or following acquisitions including the loss of customers; (ix) increased competition; (x) slow or negative growth in the nutritional supplement industry or the healthy foods channel; (xi) the loss of key personnel or the inability to manage our operations efficiently; (xii) problems with information management systems, manufacturing efficiencies and operations; (xiii) insurance coverage issues; (xiv) the volatility of the stock market generally and of our stock specifically; (xv) increases in the cost of borrowings or unavailability of additional debt or equity capital, or both, or fluctuations in foreign currencies; and (xvi) interruption of business or negative impact on sales and earnings due to acts of God, acts of war, terrorism, bio-terrorism, civil unrest and other factors outside of our control. Copies of our SEC reports are available upon request from our investor relations department or may be obtained at the SEC’s website (www.sec.gov).