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.
"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: email@example.com
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Safe Harbor StatementThis 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:
American Capital Ventures
NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME(Unaudited)(AMOUNTS EXPRESSED IN US DOLLARS)
For the Three Months EndedMarch 31,20132012REVENUE$7,411,136$6,861,018Cost of goods sold (1,772,288)(1,778,568)GROSS PROFIT 5,638,8485,082,450Selling expenses (430,463)(382,358)General and administrative expenses (592,515)(664,705)Income from operations 4,615,8704,035,387Other income (expenses): Interest income 83,74167,218Foreign exchange differences (5,187)2,404Change in fair value of warrants -(4,029)Total other income (expenses) 78,55465,593Income before income taxes 4,694,4244,100,980Provision for income taxes (1,279,740)(1,151,402)NET INCOME3,414,6842,949,578OTHER COMPREHENSIVE INCOME: Foreign currency translation adjustments 239,74779,753COMPREHENSIVE INCOME$3,654,431$3 ,029,331Earnings per share Basic
0.18Weighted average number of shares outstanding Basic 15,863,82615,361,458Diluted 16,995,92816,512,858See accompanying notes to consolidated financial statements NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(AMOUNTS EXPRESSED IN US DOLLARS) March 31,December 31,20132012(Unaudited)ASSETSCURRENT ASSETS Cash and cash equivalents
75,526,533 Accounts receivable 82,29981,497 Inventories 1,723,342965,251 Prepayments and other receivables 879,3101,321,726Total current assets 80,627,06477,895,007OTHER ASSETS Intangible assets, net 1,436,4331,552,022 Property, plant and equipment, net 15,789,12715,991,060Total assets$97,852,624$95,438,089LIABILITIES AND STOCKHOLDERS' EQUITYCURRENT LIABILITIES Other payables and accruals
1,481,198 Taxes payable 1,534,3662,981,136 Due to a related party 158,200150,036 Preferred stock dividend payable 583,920528,528 Warrants liabilities 173173Total current liabilities 3,902,5615,141,071Total liabilities 3,902,5615,141,071COMMITMENTS 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 2,577,3242,577,324Common stock, $0.001 par value, 190,000,000 shares authorized,
5,907,381 shares issued and 15,863,826 shares outstanding at
March 31, 2013 and December 31, 201215,90815,908 Additional paid-in capital 19,083,59219,029,586 Statutory reserves 5,327,2414,960,023 Treasury stock, at cost, 43,555 shares
as of March 31, 2013 and December 31, 2012(78,767)(78,767) Retained earnings 61,318,00658,325,932 Accumulated other comprehensive income 5,706,7595,467,012Total stockholders' equity 93,950,06390,297,018Total liabilities and stockholders' equity$97,852,624$95,438,089See accompanying notes to consolidated financial statements NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited)(AMOUNTS EXPRESSED IN US DOLLARS) For the Three Months EndedMarch 31,20132012CASH FLOWS FROM OPERATING ACTIVITIES: Net income
2,949,578Adjustments to reconcile net income to cash provided by operating activities: Change in fair value of warrants -4,029Depreciation and amortization 362,996309,252Loss on disposal of property and equipment Share-based compensation expense 54,006101,483(Increase) decrease in assets: Accounts receivable (584)(7,911)Inventories (754,380)(430,950)Prepayments and other receivables 445,232516,790Increase (decrease) in liabilities: Accounts payable -(6,332)Other payables and accruals 83,74948,578Taxes payable (1,452,440)(1,092,388)Net cash provided by operating activities 2,153,2632,392,129CASH 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 -4,170Net cash (used in) provided by financing activities -4,170Foreign currency translation adjustment 262,31759,349INCREASE IN CASH AND CASH EQUIVALENTS2,415,5802,439,721CASH AND CASH EQUIVALENTS, at the beginning of the period 75,526,53354,556,329CASH AND CASH EQUIVALENTS, at the end of the period$77,942,113$56, 996,050NON-CASH TRANSACTIONS Preferred stock and dividend converted into common stock
978,282Preferred stock dividend payable 55,39265,144Share-based payment to officers and directors under equity incentive plan 54,006101,483SUPPLEMENTAL DISCLOSURE INFORMATION Income taxes paid
1,899,301See accompanying notes to consolidated financial statements
|SOURCE Nutrastar International Inc.|
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