NUTRASTAR INTERNATIONAL INC HARBIN, China, Aug. 13, 2015 /PRNewswire/ -- Nutrastar International Inc. (OTC: 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 three months and six months ended June 30, 2015.
Financial Highlights for the Three Months Ended June 30, 2015
-- Net revenue was $13.24 million, representing an increase of $0.24
million or 1.8% from $13.00 million in the comparable 2014 three month
period.
-- Gross profit was $10.32 million, representing a gross margin of 77.9%.
-- Net income was $7.08 million, representing a net margin of 53.4%.
-- Basic and diluted EPS were $0.41 and $0.40, respectively, with 16.99
million basic shares and 17.74 million diluted shares outstanding.
Financial Highlights for the Six Months Ended June 30, 2015
-- Net revenue was $20.29 million, representing an increase of $0.41
million or 2.0% from $19.87 million in the comparable 2014 six month
period.
-- Gross profit was $15.78 million, representing a gross margin of 77.8%.
-- Net income was $10.61 million, representing a net margin of 52.3%.
-- Basic and diluted EPS were $0.62 and $0.60, respectively, with 16.98
million basic shares and 17.74 million diluted shares outstanding.
Management Commentary
Ms. Lianyun Han, CEO of Nutrastar, commented, "For the first half of 2015, we performed in line with our expectations. Sales of our core premium consumer product Cordyceps came in at $17.29 million, up 3.1% year-over-year, functional health beverages contributed $1.83 million and organic and specialty foods segment, our third consumer product category, contributing $1.17 million to revenues. Gross margin expanded in the first half of the year by 0.9% to 77.8% as a result of economics of scale and an attractive product mix. Overall, we're delighted with the outcome of the second quarter and first six months of the year -- both periods marked by continued strong margins and an overall increase in revenue thanks to continued Cordyceps demand."
Ms. Han continued, "As for the remainder of the year, we are confident in the continuation of our growth and expect to meet our full year 2015 revenue guidance. Demand for our premium consumer products remains steadfast and robust. We remain committed to growing our brand awareness, bringing more products into the hands of health-conscious consumers and expanding our market internationally."
"As far as composition of our Board of Directors, after the resignation of Mr. Zhang Chunming due to personal health reasons, the Board currently comprised of six members, four of whom are independent directors. I would like to thank Mr. Zhang for his service over the past few years and wish him well in his future endeavors. The Company has started the recruitment process of a new director to fulfill the vacancy. We expect bringing on someone who can assist the Company in areas of product development and market expansion," added Ms. Han.
Outlook for the Year Ending December 31, 2015
Based on management's current expectations, full year 2015 revenue remains in the range of $43 million to $45 million.
For more information regarding Nutrastar's financial performance during the three and six months ended June 30, 2015, please refer to the Quarterly Report on Form 10-Q to be filed with the Securities and Exchange Commission on or about August 13, 2015.
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 336 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:
Investor Relations
Tel: 408-368-0254
Email: ir@nutrastarintl.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 Six Months
Ended June 30, Ended June 30,
-------------- --------------
2015 2014 2015 2014
---- ---- ---- ----
NET REVENUE $13,243,223 $13,004,562 $20,285,550 $19,871,243
Cost of goods sold (2,921,381) (2,953,060) (4,505,641) (4,581,314)
---------- ---------- ---------- ----------
GROSS PROFIT 10,321,842 10,051,502 15,779,909 15,289,929
Selling expenses (427,661) (478,832) (725,286) (725,895)
General and administrative expenses (594,449) (533,618) (1,085,732) (1,206,633)
-------- -------- ---------- ----------
Income from operations 9,299,732 9,039,052 13,968,891 13,357,401
--------- --------- ---------- ----------
Other income (expenses):
Interest income 114,822 97,226 226,229 189,084
Foreign exchange differences 6,240 (1,639) (1,831) (19,728)
----- ------ ------ -------
Total other income 121,062 95,587 224,398 169,356
------- ------ ------- -------
Income before income taxes 9,420,794 9,134,639 14,193,289 13,526,757
Provision for income taxes (2,342,967) (2,338,917) (3,584,285) (3,497,461)
---------- ---------- ---------- ----------
NET INCOME 7,077,827 6,795,722 10,609,004 10,029,296
OTHER COMPREHENSIVE INCOME:
Foreign currency translation adjustments 674,919 (17,913) 149,745 (1,070,742)
------- ------- ------- ----------
COMPREHENSIVE INCOME $7,752,746 $6,777,809 $10,758,749 $8,958,554
---------- ---------- ----------- ----------
Earnings per share:
Basic $0.41 $0.40 $0.62 $0.59
===== ===== ===== =====
Diluted $0.40 $0.38 $0.60 $0.57
===== ===== ===== =====
Weighted average number of shares outstanding:
Basic 16,996,396 16,858,667 16,977,221 16,758,599
========== ========== ========== ==========
Diluted 17,739,156 17,694,270 17,738,285 17,657,471
========== ========== ========== ==========
NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS EXPRESSED IN US DOLLARS)
June 30, 2015 December 31, 2014
------------- -----------------
(Unaudited)
ASSETS
------
CURRENT ASSETS
Cash and cash equivalents $137,730,508 $126,542,564
Accounts receivable 95,620 93,066
Inventories 922,555 635,409
Prepayments and other receivables 1,706,928 1,489,800
--------- ---------
Total current assets 140,455,611 128,760,839
OTHER ASSETS
Intangible assets, net 368,430 613,315
Property, plant and equipment, net 13,944,027 14,424,942
---------- ----------
Total assets $154,768,068 $143,799,096
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
CURRENT LIABILITIES
Other payables and accruals $954,724 $990,290
Taxes payable 2,899,998 2,748,583
Due to a related party 524,212 511,054
Preferred stock dividend payable 742,778 690,662
------- -------
Total current liabilities 5,121,712 4,940,589
--------- ---------
Total liabilities 5,121,712 4,940,589
--------- ---------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred Stock, $0.001 par value, 1,000,000 shares authorized, 74,276 shares 1,693,950 1,773,772
and 77,776 shares issued and outstanding at June 30, 2015 and December
31, 2014, respectively; aggregate liquidation preference amount: $2,079,728
and $ 2,177,728, plus accrued but unpaid dividend of $742,778 and
$690,662, at June 30, 2015 and December 31, 2014, respectively
Common stock, $0.001 par value, 190,000,000 shares authorized, 17,039,951 17,040 16,954
shares issued and 16,996,396 shares outstanding at June 30, 2015;
16,953,541 shares issued and 16,909,986 shares outstanding at December
31, 2014
Additional paid-in capital 21,315,259 21,122,372
Statutory reserves 4,989,033 4,989,033
Treasury stock, at cost, 43,555 shares as of June 30, 2015 and December (78,767) (78,767)
31,2014
Retained earnings 113,308,261 102,783,308
Accumulated other comprehensive income 8,401,580 8,251,835
--------- ---------
Total stockholders' equity 149,646,356 138,858,507
----------- -----------
Total liabilities and stockholders' equity $154,768,068 $143,799,096
============ ============
NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(AMOUNTS EXPRESSED IN US DOLLARS)
For the Six Months Ended June 30,
---------------------------------
2015 2014
---- ----
CASH FLOWS FROM OPERATING
ACTIVITIES:
Net income $10,609,004 $10,029,296
Adjustments to reconcile net income
to cash provided by operating
activities:
Depreciation and amortization 737,238 743,052
Share-based compensation expense 81,216 66,463
IR unregistered stock compensation
expense - 53,371
(Increase) decrease in assets:
Accounts receivable (2,466) (37,370)
Inventories (285,869) (136,651)
Prepayments and other receivables (215,274) (68,381)
Increase (decrease) in liabilities:
Other payables and accruals (36,264) (127,833)
Advance from related party - 179,980
Taxes payable 148,615 (46,908)
------- -------
Net cash provided by operating
activities 11,036,200 10,655,019
---------- ----------
CASH FLOWS FROM FINANCING
ACTIVITIES:
Advance from related party 10,951 29,704
------ ------
Net cash provided by financing
activities 10,951 29,704
------ ------
Foreign currency translation
adjustment 140,793 (960,635)
------- --------
INCREASE IN CASH AND CASH
EQUIVALENTS 11,187,944 9,724,088
CASH AND CASH EQUIVALENTS, at the
beginning of the period 126,542,564 102,599,186
----------- -----------
CASH AND CASH EQUIVALENTS,
at the end of the period $137,730,508 $112,323,274
============ ============
NON-CASH TRANSACTIONS
Preferred stock and
dividend converted into
common stock $111,757 $958,897
Preferred stock dividend payable 84,051 88,249
Share-based payment to officers and
directors under equity incentive
plan 81,216 66,463
Share-based payment - IR
unregistered stock compensation
expense - 53,371
SUPPLEMENTAL DISCLOSURE INFORMATION
Income taxes paid $3,494,213 $3,502,450
========== ==========
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SOURCE Nutrastar International Inc.
