Attached files
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| 8-K - FORM 8-K - Nutrastar International Inc. | form8k.htm |
Exhibit 99.1
Nutrastar Releases Record Third Quarter 2013 Results
Harbin, China, November 13, 2013-- 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”), health beverages and organic and specialty foods, today announced its financial results for the three and nine months ended September 30, 2013.
Three Months Ended September 30, 2013 Financial Highlights
-
Net revenue increased 44.4% to $10.94 million, up from $7.57 million in the three months ended September 30, 2012.
-
Gross profit increased 46% to $8.78 million, up from $6.01 million in the comparable third quarter 2012
-
Gross margin was 80.3% compared with 79.4% in the third quarter 2012.
-
Net income was $5.78 million, up 54.4% from $3.74 million recorded in Q3 2012.
-
Basic and diluted EPS were $0.36 and $0.34, respectively, with 15.92 million basic and 17.06 million diluted shares outstanding.
Nine Months Ended September 30, 2013 Financial Highlights
-
Net revenue increased 23.5% to $30.22 million, compared to $24.47 million in the nine months ended September 30, 2012.
-
Gross profit increased 26.3% to $23.56 million, up from $18.66 million in the comparable 2012 nine month period.
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Gross margin was 78.0%, compared to 76.3% in the first nine months of 2012.
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Net income was $15.16 million, up 30.7% from $11.6 million in the nine months ended September 30, 2012.
-
Basic and diluted EPS were $0.94 and $0.89, respectively, with 15.88 million basic and 17.02 million diluted shares outstanding.
Management Commentary
“In the three and nine months ended September 20, 2013, our numbers reflected continued and significant growth in sales, gross profit, and income. Gross margin further improved to 80.3% in the third quarter thanks to our increased capacity as well as an attractive product mix comprised mainly of our high margin commercially cultivated Cordyceps. Cordyceps, functional health beverage and organic specialty food sales specifically were up 48.5%, 39.7% and 5.9%, respectively, in the third quarter of 2013 versus the comparable 2012 quarter. Increases in sales this quarter came from increased capacity as well as company-led marketing initiatives.” stated, Ms. Lianyun Han, CEO of Nutrastar.
Ms. Han continued, “With the production means necessary to expand our market, we are focused on further extending our brand awareness and product offering to better and more comprehensively serve our customers. Prior launched marketing campaigns are working to promote the health benefits of our premium consumer products, especially our on-the-go functional health beverage and instant soluble drink. We also began testing sales of our instant soluble drink at the Bao Feng specialty drug store in Harbin for an initial trial period of up to six months that began this month. Bao Feng is a direct consumer specialty drug store that has approximately 1,000 stores nationwide. Depending on how sales do in the trial store, this may or may not be a channel for us moving forward. On the new product front, we have started developing Cordyceps capsules and tablets, designed to complement our current premium consumer product offering and cater to our everyday customer looking for an on-the-go health supplement similar to other vitamin-type supplements. It’s estimated that the product development process for both capsules and tablets will take approximately 12 – 18 months to complete.”
In closing, Ms. Han stated, “With consumer demand for our premium products remaining strong and persistent, particularly among the wealthier and aging population, we are quite confident in our ability to meet our full year revenue guidance and continue to grow thereafter. We look forward to updating our shareholders and the investment community on our progress in these areas and more in the time ahead.”
Request for Call with Management
Investors are invited to schedule 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 September 30, 2013, please refer to the Quarterly Report Form 10-Q to be filed with the Securities and Exchange Commission on or about November 13, 2013.
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
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
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
COMPREHENSIVE INCOME
(Unaudited)
(AMOUNTS EXPRESSED IN US
DOLLARS)
| For the Three Months | For the Nine Months | |||||||||||
| Ended September 30, | Ended September 30, | |||||||||||
| 2013 | 2012 | 2013 | 2012 | |||||||||
| NET REVENUE | $ | 10,935,950 | $ | 7,572,443 | $ | 30,221,420 | $ | 24,468,889 | ||||
| Cost of goods sold | (2,159,255 | ) | (1,559,180 | ) | (6,662,959 | ) | (5,809,842 | ) | ||||
| GROSS PROFIT | 8,776,695 | 6,013,263 | 23,558,461 | 18,659,047 | ||||||||
| Selling expenses | (435,920 | ) | (350,426 | ) | (1,340,176 | ) | (1,198,434 | ) | ||||
| General and administrative expenses | (588,375 | ) | (551,348 | ) | (1,877,642 | ) | (1,880,591 | ) | ||||
| Income from operations | 7,752,400 | 5,111,489 | 20,340,643 | 15,580,022 | ||||||||
| Other income (expenses): | ||||||||||||
| Interest income | 72,633 | 59,957 | 235,122 | 193,839 | ||||||||
| Foreign exchange differences | 21,517 | (3,440 | ) | 47,974 | (14,607 | ) | ||||||
| Change in fair value of warrants | - | (25,915 | ) | 173 | 114,845 | |||||||
| Total other income | 94,150 | 30,602 | 283,269 | 294,077 | ||||||||
| Income before income taxes | 7,846,550 | 5,142,091 | 20,623,912 | 15,874,099 | ||||||||
| Provision for income taxes | (2,066,105 | ) | (1,397,501 | ) | (5,465,974 | ) | (4,278,897 | ) | ||||
| NET INCOME | 5,780,445 | 3,744,590 | 15,157,938 | 11,595,202 | ||||||||
| OTHER COMPREHENSIVE INCOME: | ||||||||||||
| Foreign currency translation adjustments | 521,176 | (199,602 | ) | 2,150,468 | (486,711 | ) | ||||||
| COMPREHENSIVE INCOME | $ | 6,301,621 | $ | 3,544,988 | $ | 17,308, 406 | $ | 11,108,491 | ||||
| Earnings per share: | ||||||||||||
| Basic | $ | 0.36 | $ | 0.24 | $ | 0.94 | $ | 0.74 | ||||
| Diluted | $ | 0.34 | $ | 0.23 | $ | 0.89 | $ | 0.70 | ||||
| Weighted average number of shares outstanding: | ||||||||||||
| Basic | 15,919,261 | 15,402,196 | 15,882,507 | 15,376,476 | ||||||||
| Diluted | 17,060,119 | 16,532,296 | 17,018,122 | 16,515,212 | ||||||||
NUTRASTAR INTERNATIONAL INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(AMOUNTS EXPRESSED IN US DOLLARS)
| For the Nine Months Ended | ||||||
| September 30, | ||||||
| 2013 | 2012 | |||||
|
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||
|
Net income |
$ | 15,157,938 | $ | 11,595,202 | ||
|
Adjustments to reconcile net income to cash provided by operating activities: |
||||||
|
Change in fair value of warrants |
(173 | ) | (114,845 | ) | ||
|
Depreciation and amortization |
1,101,320 | 926,272 | ||||
|
Share-based compensation expense – employees |
142,653 | 313,262 | ||||
|
Share-based compensation expense – non employees |
4,767 | - | ||||
|
(Increase) decrease in assets: |
||||||
|
Accounts receivable |
(6,347 | ) | (1,110 | ) | ||
|
Inventories |
(645,094 | ) | (321,613 | ) | ||
|
Prepayments and other receivables |
127,818 | 109,625 | ||||
|
Increase (decrease) in liabilities: |
||||||
|
Accounts payable |
(6,323 | ) | ||||
|
Other payables and accruals |
421,181 | 277,756 | ||||
|
Taxes payable |
(489,557 | ) | (737,396 | ) | ||
|
Net cash provided by operating activities |
15,814,506 | 12,040,830 | ||||
|
|
||||||
|
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||
|
Refund of prepayments for cold studios |
- | 1,266,424 | ||||
|
Purchase of property, plant and equipment |
- | (15,903 | ) | |||
|
Net cash provided by investing activities |
- | 1,250,521 | ||||
|
|
||||||
|
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||
|
Decrease in restricted cash |
- | 4,170 | ||||
|
Purchase of common stock |
- | (69,214 | ) | |||
|
(Repayment to) advance from related party |
(36,106 | ) | 82,674 | |||
|
Net cash (used in) provided by financing activities |
(36,106 | ) | 17,630 | |||
|
|
||||||
|
Foreign currency translation adjustment |
1,855,165 | (390,824 | ) | |||
|
|
||||||
|
INCREASE IN CASH AND CASH EQUIVALENTS |
17,633,565 | 12,918,157 | ||||
|
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 |
$ | 93,160,098 | $ | 67,474,486 | ||
|
|
||||||
|
NON-CASH TRANSACTIONS |
||||||
|
Preferred stock and dividend converted into common stock |
$ | - | $ | 995,587 | ||
|
Preferred stock dividend payable |
170,601 | 218,685 | ||||
|
Share-based payment to officers and directors under equity incentive plan |
142,653 | 313,262 | ||||
|
Share-based payment to non-employees |
4,767 | - | ||||
|
SUPPLEMENTAL DISCLOSURE INFORMATION |
||||||
|
Income taxes paid |
$ | 5,605,361 | $ | 4,773,432 | ||
NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS EXPRESSED IN US
DOLLARS)
| September 30, | December 31, | |||||
| 2013 | 2012 | |||||
| (Unaudited) | ||||||
| ASSETS | ||||||
| CURRENT ASSETS | ||||||
| Cash and cash equivalents | $ | 93,160,098 | $ | 75,526,533 | ||
| Accounts receivable | 89,737 | 81,497 | ||||
| Inventories | 1,638,953 | 965,251 | ||||
| Prepayments and other receivables | 1,222,077 | 1,321,726 | ||||
| Total current assets | 96,110,865 | 77,895,007 | ||||
| OTHER ASSETS | ||||||
| Intangible assets, net | 1,220,574 | 1,552,022 | ||||
| Property, plant and equipment, net | 15,601,555 | 15,991,060 | ||||
| Total assets | $ | 112,932,994 | $ | 95,438,089 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| CURRENT LIABILITIES | ||||||
| Other payables and accruals | $ | 1,938,935 | $ | 1,481,198 | ||
| Taxes payable | 2,552,924 | 2,981,136 | ||||
| Due to a related party | 159,763 | 150,036 | ||||
| Preferred stock dividend payable | 699,129 | 528,528 | ||||
| Warrants liabilities | - | 173 | ||||
| Total current liabilities | 5,350,751 | 5,141,071 | ||||
| Total liabilities | 5,350,751 | 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 $699,129 and $528,528, at September 30, 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; 15,953,826 shares and 15,863,826 shares outstanding at September 30, 2013 and December 31, 2012, respectively |
15,998 | 15,908 | ||||
| Additional paid-in capital | 19,176,916 | 19,029,586 | ||||
| Statutory reserves | 4,966,457 | 4,960,023 | ||||
|
Treasury stock, at cost, 43,555 shares as of September 30, 2013 and December 31, 2012 |
(78,767 | ) | (78,767 | ) | ||
| Retained earnings | 73,306,835 | 58,325,932 | ||||
| Accumulated other comprehensive income | 7,617,480 | 5,467,012 | ||||
| Total stockholders' equity | 107,582,243 | 90,297,018 | ||||
| Total liabilities and stockholders' equity | $ | 112,932,994 | $ | 95,438,089 |