omniture

Nutrastar Announces First Quarter 2013 Results, Maintains Full Year Revenue Guidance Range of $44 million to $46 Million

2013-05-14 20:00 1754

HARBIN, China, May 14, 2013 /PRNewswire-FirstCall/ -- Nutrastar International Inc. (OTCQB: NUIN; "Nutrastar" or the "Company"), a leading producer and supplier of premium branded consumer products, including commercially cultivated Cordyceps Militaris ("Cordyceps"), functional health beverages and organic and specialty foods, today announced its financial results for the quarter ended March 31, 2013.

Financial Highlights

  • Net revenue increased 8.0% to $7.41 million, as compared to $6.86 million in the quarter ended March 31, 2012.
  • Gross profit increased 11.0% to $5.64 million, up from $5.08 million in the comparable 2012 quarter, representing a gross margin of 76.1%.
  • Net income was $3.41 million, as compared to $2.95 million in Q1 2012.
  • Basic and diluted EPS were $0.21 and $0.20, respectively, with 15.86 million basic shares and 16.99 million diluted shares outstanding.

Management Commentary

"Nutrastar's first quarter 2013 was marked by continued sales growth, increased profitability and a growing balance sheet. Commercially cultivated Cordyceps, our core consumer product business, saw a year-over-year sales increase of 11.4%. Our functional health beverages and organic specialty products businesses experienced a sales decrease of 7.9% and 1.1% in the quarter, respectively, due to the timing of the reorder cycle from the beverage distributors. As a percentage of revenue, gross profit increased by 2% year-over-year, reaching 76.1%. As expected, we saw a slight improvement in our cost of goods sold on a percentage basis resulting from our increased production capacity and utilization. Our cash balance at the end of the quarter remained at a strong $77.9 million or approximately $4.59 per diluted share, as seen and verified at the bank by our independent auditor," stated, Ms. Lianyun Han, CEO of Nutrastar.

Ms. Han continued, "Looking into Q2 and the remainder of 2013, we are confident in our ability to maintain our upward momentum and capitalize on rising demand stemming from China's young, increasing affluent and aging populations. Strategic advertising and marketing initiatives will remain steadfast and continue to be aimed at these consumer populations and others. We will continue to seek out and identify new and attractive markets within China for our premium consumer products as well as consider complementary acquisitions that are accretive to the company and our shareholders."

Outlook for the Year Ending December 31, 2013

Based on management's current expectations, the Company maintains its expectation that 2013 revenue will be in the range of $44 million to $46 million, representing an approximate 19% to 25% top line increase year-over-year.

Request for Call with Management

Investors are invited to request a call with Nutrastar's management team. For those investors who are interested in speaking with management, please contact American Capital Ventures at +1-305-918-7000 to schedule.

For more information regarding Nutrastar's financial performance during the quarter ended March 31, 2013, please refer to the Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on or about May 14, 2013. Management is available to discuss the financial results with investors should they have any questions. To arrange a call with the management team, please contact Investor Relations at 305-918-7000.

About Nutrastar International Inc.

Nutrastar is a China based leading producer and supplier of premium branded consumer products including commercially cultivated Cordyceps Militaris, functional health beverages as well as specialty and organic foods. Cordyceps Militaris is one of the most highly regarded herbal nutrients in Traditional Chinese Medicine. The Company is headquartered in Harbin, capital of Heilongjiang Province, with 330 employees, including 21 in R&D, and 149 in sales and marketing. The products of Nutrastar are sold throughout China via a sales and distribution network that covers more than 10 provinces. More information may be found at http://www.nutrastarintl.com/ or e-mail: ir@nutrastarintl.com

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Safe Harbor Statement

This news release contains "forward-looking statements" relating to the business of Nutrastar International Inc., its subsidiaries and other affiliate companies. All statements, other than statements of historical fact included herein are "forward-looking statements" including statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. These forward-looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions. These statements are subject to uncertainties and risks including, but not limited to, product and service demand and acceptance, changes in technology, economic conditions, the impact of competition and pricing, government regulation, and other risks contained in reports filed by the Company with the Securities and Exchange Commission. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Other than as required under the securities laws, the Company does not assume a duty to update any forward-looking statements to reflect events or circumstances after the date hereof.

For more information, please contact:

Howard Gostfrand
American Capital Ventures
Tel: +1-305-918-7000
Email: info@amcapventures.com

NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME

(Unaudited)

(AMOUNTS EXPRESSED IN US DOLLARS)






For the Three Months Ended



March 31,



2013


2012









REVENUE

$

7,411,136


$

6,861,018


Cost of goods sold


(1,772,288)



(1,778,568)


GROSS PROFIT


5,638,848



5,082,450


Selling expenses


(430,463)



(382,358)


General and administrative expenses


(592,515)



(664,705)


Income from operations


4,615,870



4,035,387


Other income (expenses):







Interest income


83,741



67,218


Foreign exchange differences


(5,187)



2,404


Change in fair value of warrants


-



(4,029)


Total other income (expenses)


78,554



65,593


Income before income taxes


4,694,424



4,100,980


Provision for income taxes


(1,279,740)



(1,151,402)


NET INCOME


3,414,684



2,949,578


OTHER COMPREHENSIVE INCOME:







Foreign currency translation adjustments


239,747



79,753


COMPREHENSIVE INCOME

$

3,654,431


$

3 ,029,331


Earnings per share







Basic

$

0.21


$

0.19


Diluted

$

0.20


$

0.18


Weighted average number of shares outstanding







Basic


15,863,826



15,361,458


Diluted


16,995,928



16,512,858









See accompanying notes to consolidated financial statements

NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(AMOUNTS EXPRESSED IN US DOLLARS)









March 31,


December 31,



2013


2012



(Unaudited)





ASSETS







CURRENT ASSETS







Cash and cash equivalents

$

77,942,113


$

75,526,533


Accounts receivable


82,299



81,497


Inventories


1,723,342



965,251


Prepayments and other receivables


879,310



1,321,726


Total current assets


80,627,064



77,895,007


OTHER ASSETS







Intangible assets, net


1,436,433



1,552,022


Property, plant and equipment, net


15,789,127



15,991,060









Total assets

$

97,852,624


$

95,438,089


LIABILITIES AND STOCKHOLDERS' EQUITY





CURRENT LIABILITIES







Other payables and accruals

$

1,625,902


$

1,481,198


Taxes payable


1,534,366



2,981,136


Due to a related party


158,200



150,036


Preferred stock dividend payable


583,920



528,528


Warrants liabilities


173



173


Total current liabilities


3,902,561



5,141,071


Total liabilities


3,902,561



5,141,071


COMMITMENTS AND CONTINGENCIES (Note 17)














STOCKHOLDERS' EQUITY







Preferred Stock, $0.001 par value, 1,000,000 shares authorized, 113,010
shares issued and outstanding; aggregate liquidation preference amount:
$3,164,280 and $3,164,280, plus accrued but unpaid dividend of $583,920
and $528,528, at March 31, 2013 and December 31, 2012, respectively


2,577,324



2,577,324









Common stock, $0.001 par value, 190,000,000 shares authorized,
15,907,381 shares issued and 15,863,826 shares outstanding at
March 31, 2013 and December 31, 2012


15,908



15,908









Additional paid-in capital


19,083,592



19,029,586


Statutory reserves


5,327,241



4,960,023


Treasury stock, at cost, 43,555 shares
as of March 31, 2013 and December 31, 2012


(78,767)



(78,767)


Retained earnings


61,318,006



58,325,932


Accumulated other comprehensive income


5,706,759



5,467,012


Total stockholders' equity


93,950,063



90,297,018









Total liabilities and stockholders' equity

$

97,852,624


$

95,438,089









See accompanying notes to consolidated financial statements


NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(AMOUNTS EXPRESSED IN US DOLLARS)






For the Three Months Ended



March 31,



2013


2012


CASH FLOWS FROM OPERATING ACTIVITIES:







Net income

$

3,414,684


$

2,949,578


Adjustments to reconcile net income to cash provided by operating activities:







Change in fair value of warrants


-



4,029


Depreciation and amortization


362,996



309,252


Loss on disposal of property and equipment







Share-based compensation expense


54,006



101,483


(Increase) decrease in assets:







Accounts receivable


(584)



(7,911)


Inventories


(754,380)



(430,950)


Prepayments and other receivables


445,232



516,790


Increase (decrease) in liabilities:







Accounts payable


-



(6,332)


Other payables and accruals


83,749



48,578


Taxes payable


(1,452,440)



(1,092,388)


Net cash provided by operating activities


2,153,263



2,392,129









CASH FLOWS FROM INVESTING ACTIVITIES:







Purchase of property, plant and equipment


-



(15,927)


Net cash used in investing activities


-



(15,927)









CASH FLOWS FROM FINANCING ACTIVITIES:







Decrease in restricted cash


-



4,170


Net cash (used in) provided by financing activities


-



4,170









Foreign currency translation adjustment


262,317



59,349









INCREASE IN CASH AND CASH EQUIVALENTS


2,415,580



2,439,721


CASH AND CASH EQUIVALENTS, at the beginning of the period


75,526,533



54,556,329









CASH AND CASH EQUIVALENTS, at the end of the period

$

77,942,113


$

56, 996,050









NON-CASH TRANSACTIONS







Preferred stock and dividend converted into common stock

$

-


$

978,282


Preferred stock dividend payable


55,392



65,144


Share-based payment to officers and directors under equity incentive plan


54,006



101,483


SUPPLEMENTAL DISCLOSURE INFORMATION







Income taxes paid

$

2,168,693


$

1,899,301









See accompanying notes to consolidated financial statements

Source: Nutrastar International Inc.
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