omniture

Nutrastar Announces Record Full Year 2011 Results

2012-03-28 19:00 951

HARBIN, China, March 28, 2012 /PRNewswire-Asia-FirstCall/ -- Nutrastar International Inc. (OTCBB: 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 results for the year ended December 31, 2011.

Financial Highlights for the Year Ended December 31, 2011:

  • Revenues increased 41.1% to $34.21 million compared to $24.24 million in the year ended December 31, 2010.
  • Gross profit increased 32.4% to $25.96 million, up from $19.6 million in the comparable 2010 year, representing a gross margin of 75.9%.
  • Net income rose 26.3% to $17.00 million, up from $13.44 million in 2010, representing a net margin of 49.7%.
  • Basic and diluted EPS were $1.12 and $1.04, respectively with 14.78 million basic shares and 16.34 million diluted shares outstanding.

Ms. Lianyun Han, CEO of Nutrastar, commented, "2011 marked another year of record sales for Nutrastar. With Chinese consumer demand for our premium products remaining strong, we met our revenue guidance for the year with total revenues reaching $34.21 million, up 41% year-over-year. Orders for our core consumer product, Cordyceps remained robust, contributing $25.34 million to our top line, while our organic and specialty food business contributed roughly $2.02 million. As a result of our marketing and branding efforts, our functional health beverages saw sales grow to $6.85 million for 2011 with $3.38 million in sales recorded in the fourth quarter alone, up 60% from third quarter sales of $2.11 million. While still high, gross margins declined to 75.9% from 80.9% in 2010 due to the increased contribution of our beverage products which incur a higher cost of production than our core consumer product, Cordyceps."

"In addition to sales growth, Nutrastar was active in corporate and product development initiatives. In 2011, we adopted a share repurchase program in August and grew our internal Cordyceps production capacity to 72 tons representing an increase of 30%," stated Ms. Han. "We are also in the process of strategically diversifying our product offerings with the addition of an instant soluble drink powder as well as a forthcoming variety of organic products stemming from the sizeable expansion of our organic & specialty foods business that is currently underway. We expect to see a revenue stream from these products in the near future."

Commenting on 2012, Ms. Han stated, "We foresee a continuation of our production capacity expansion, solid sales of our core consumer product, Cordyceps, growing sales of both our functional health beverages and organic & specialty foods, and the introduction of new premium consumer products to the market such as our Cordyceps-infused alcohol product. We also expect, with market and regulatory conditions permitting, to continue to purchase additional shares under our share repurchase program. Armed with augmented capacity, in-demand consumer products and the expectation of new premium consumer products being introduced to the market, we are confident that 2012 will be an even better year for Nutrastar than the previous."

Financial Position as of December 31, 2011

The Company had cash and cash equivalents totaling $54.56 million or $3.34 per diluted share, total assets of approximately $76.43 million or $4.68 per diluted share, working capital of $52.33 million or $3.20 per diluted share, and stockholders' equity of $72.02 million. The Net cash generated from operating activities was $18.80 million for the year ended December 31, 2011 as compared to $15.35 million in the comparable 2010 period. As part of the year end audit, the Company's cash on hand was vouched for and verified by our independent auditors in person.

Outlook for the Year Ending December 31, 2012

Based on management's current expectations, the Company maintains its belief that revenue will be in the range of $40 million to $44 million, representing an approximate 17% to 29% top line increase year over year.

Conference Call

Nutrastar will host a conference call at 8:30 a.m. EDT on Wednesday, March 28, 2012 to discuss the Company's full year 2011 results. Ms. Lianyun Han, Chief Executive Officer, and Mr. Robert Tick, Chief Financial Officer, will be hosting the call.

Investors can participate on the live call by dialing +1 (877) 407-0784 for domestic investors and +1 (201) 689-8560 for international investors. Please reference event ID: 390950.

For investors that would like to listen to the webcast, please log on to http://viavid.net/dce.aspx?sid=000094F8 approximately 5 minutes before the start of the call.

If you are unable to participate in the call at this time, a replay of the call will be available for two weeks following the call starting at 11:30 a.m. EDT, March 28, 2012 and ending at 11:59 p.m. EDT on April 11, 2012. To listen to the replay, domestic investors can dial +1 (877) 870-5176 and international investors can dial +1 (858) 384-5517. The pass code for the replay is: 390950.

For more information regarding Nutrastar's financial performance during the year ended December 31, 2011, please refer to the Annual Report on Form 10-K filed with the Securities and Exchange Commission.

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 332 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

Make sure you are first to receive timely up-to-date information on Nutrastar. Sign up for Nutrastar's email news alert system today at: http://www.nutrastarintl.com/alerts

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
CONSOLIDATED BALANCE SHEETS
(AMOUNTS EXPRESSED IN US DOLLARS)

December 31,

2011

2010

ASSETS

CURRENT ASSETS

Cash and cash equivalents

$

54,556,329

$

40,758,848

Restricted cash

4,170

193,075

Accounts receivable

82,516

261,223

Inventories

898,871

867,761

Prepayments and other receivables

1,194,466

289,502

Total current assets

56,736,352

42,370,409

OTHER ASSETS

Intangible assets, net

2,024,593

2,379,435

Property, plant and equipment, net

12,395,567

10,248,989

Construction in process

5,271,609

-

Total assets

$

76,428,121

$

54,998,833

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES

Accounts payable

$

6,339

$

125,843

Other payables and accruals

1,064,045

746,643

Taxes payable

2,585,738

696,519

Due to a related party

80,648

51,339

Preferred stock dividend payable

529,851

181,181

Warrants liabilities

144,411

1,198,273

Total current liabilities

4,411,032

2,999,798

Total liabilities

4,411,032

2,999,798

COMMITMENTS AND CONTINGENCIES (Note 19)

STOCKHOLDERS' EQUITY

Preferred Stock, $0.001 par value, (1,000,000 shares authorized,

147,820 shares and 197,706 shares issued and outstanding, respectively;

aggregate liquidation preference amount: $4,138,960 and $5,535,768,

plus accrued but unpaid dividend of $529,851 and $181,181,

3,371,206

4,508,914

at December 31, 2011 and 2010, respectively

Common stock, $0.001 par value, 190,000,000 shares authorized;

14,962,631 shares issued and 14,957,970 shares outstanding at December

14,963

14,333

31, 2011; 14,332,731 issued and outstanding at December 31, 2010

Additional paid-in capital

17,180,280

15,541,207

Treasury stock, at cost, 4,661 shares and nil as of December 31, 2011

and December 31, 2010, respectively

(9,553)

-

Statutory reserves

3,076,552

1,348,071

Retained earnings

43,167,074

28,326,896

Accumulated other comprehensive income

5,216,567

2,259,614

Total stockholders' equity

72,017,089

51,999,035

Total liabilities and stockholders' equity

$

76,428,121

$

54,998,833


NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(AMOUNTS EXPRESSED IN US DOLLARS)

Year Ended December 31,

2011

2010

NET REVENUE

$

34,205,954

$

24,241,688

Cost of goods sold

(8,246,853)

(4,637,951)

GROSS PROFIT

25,959,101

19,603,737

Selling expenses

(1,640,796)

(1,092,598)

General and administrative expenses

(2,843,298)

(2,722,939)

Income from operations

21,475,007

15,788,200

Other income (expenses):

Interest income

193,742

124,036

Foreign exchange differences

60,988

(130,779)

Loss on disposal of fixed assets

-

(102,675)

Change in fair value of warrants

1,053,862

(15,413)

Total other income (expenses)

1,308,592

(124,831)

Income before income taxes

22,783,599

15,663,369

Provision for income taxes

(5,800,632)

(2,219,190)

NET INCOME

16,982,967

13,444,179

OTHER COMPREHENSIVE INCOME:

Foreign currency translation adjustments

2,956,953

1,286,698

COMPREHENSIVE INCOME

$

19,939,920

$

14,730,877

Earnings per share

Basic

$

1.12

$

0.80

Diluted

$

1.04

$

0.79

Weighted average number of shares outstanding

Basic

14,784,564

14,327,799

Diluted

16,339,999

14,476,349

NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(AMOUNTS EXPRESSED IN US DOLLARS)

Year Ended December 31,

2011

2010

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income

$

16,982,967

$

13,444,179

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

Change in fair value of warrants

(1,053,862)

15,413

IR warrant and restricted stock expense

79,415

52,170

Depreciation and amortization

1,142,635

1,019,188

Share-based compensation expense

394,207

219,891

Loss from disposal of fixed assets

-

102,675

(Increase) decrease in assets:

Accounts receivable

187,353

(38,204)

Inventories

12,885

(227,528)

Prepayments and other receivables

(912,759)

1,406

Increase (decrease) in liabilities:

Accounts payable

(122,853)

122,243

Other payables and accruals

277,540

275,183

Taxes payable

1,808,330

358,768

Net cash provided by operating activities

18,795,858

15,345,384

CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of property, plant and equipment and construction in progress

(7,613,286)

(421,638)

Proceeds from disposal of fixed assets

209,177

203,086

Net cash used in investing activities

(7,404,109)

(218,552)

CASH FLOWS FROM FINANCING ACTIVITIES:

Repurchase of common stock

(9,553)

-

Net proceeds from Private Placement

-

5,483,919

Decrease in restricted cash

188,905

(193,075)

Repayment of payables for intangible asset

-

(886,328)

Advance from a related party

29,309

-

Net cash provided by financing activities

208,661

4,404,516

Foreign currency translation adjustment

2,197,071

1,111,823

INCREASE IN CASH AND CASH EQUIVALENTS

13,797,481

20,643,171

CASH AND CASH EQUIVALENTS, at the beginning of the year

40,758,848

20,115,677

CASH AND CASH EQUIVALENTS, at the end of the year

$

54,556,329

$

40,758,848

NON-CASH TRANSACTIONS

Preferred stock and dividend converted into common stock

$

1,203,346

$

-

Preferred stock dividend payable

414,308

181,181

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

394,207

219,891

Share-based payment - IR warrants and restricted stock

42,150

52,170

Release of VIE acquisition payable

-

8,936,150

SUPPLEMENTAL DISCLOSURE INFORMATION

Income taxes paid

$

4,210,323

$

2,214,334


Source: Nutrastar International Inc.
Related Stocks:
OTC:NUIN
collection