HARBIN, China, March 29, 2013 /PRNewswire-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, 2012.
"While we were quite pleased with our 2012 financial results, as mentioned last quarter, the Company experienced a supply shortage due to required operational maintenance that occurred within our facilities – resulting in full year sales being lower than expected. Despite this short disruption, total sales for the year ended December 31, 2012 grew by 7.5% reaching approximately $36.8 million, as compared to the previous year's sales of $34.2 million. High demand led to a 9.5% year-over-year increase in sales of our core consumer product, Cordyceps; while organic specialty foods sales saw a 4.7% increase and functional health beverages saw a 0.9% increase. Gross profit remained strong at 76.2%. The year of 2012 was also marked by the completion of our large multi-phase, multi-year production capacity expansion project, which overall boosted capacity from 55 tons to 100 tons, a huge milestone achieved for the Company and the team," Ms. Lianyun Han, CEO of Nutrastar, commented.
On the subject of the Company's financial position, Ms. Han stated, "As vouched and verified by our independent auditor, we closed the year with a cash balance of approximately $75.5 million, equivalent to roughly $4.55 per diluted share. These funds are being managed wisely and conservatively, and are set aside for the Company's future organic and inorganic growth initiatives such as brand and product development, as well as marketing & advertising designed to promote our consumer product portfolio in cities deemed most opportunistic."
Ms. Han continued, "Looking at 2013, current demographical and market conditions in China seemingly continue to remain advantageous to our businesses and our premium consumer product offerings, particularly as the country becomes more affluent; its citizens become more health conscious; and rising healthcare costs continue to result in increasing demand for alternative medicines and preventative measures such as our core product Cordyceps. We expect this year to be one of substantial expansion in both our top and bottom line as well as within our product offerings and overall market presence. Equipped with heightened capacity, we also expect to see improvements related to our costs and operations, and anticipate that with the proper, intelligent allocation of funds, we will continue building greater market awareness for our premium functional health beverages and other products in China with the larger goal to expand distribution into the international arena. We look forward to the remainder of the year ahead and encourage any interested party to reach out to us directly for more information on Nutrastar and our innovative, premium consumer product portfolio."
Outlook for the Year Ending December 31, 2013
Based on management's current expectations, the Company projects 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 year ended December 31, 2012, please refer to the Annual Report on Form 10-K to be filed with the Securities and Exchange Commission on or about March 29, 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 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: firstname.lastname@example.org
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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," "projects," "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 SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME(AMOUNTS EXPRESSED IN US DOLLARS) Year Ended December 31,20122011REVENUE$36,771,176$34,205,954Cost of goods sold (8,742,166)(8,246,853)GROSS PROFIT 28,029,01025,959,101Selling expenses (1,658,956)(1,640,796)General and administrative expenses (3,102,070)(2,843,298)Income from operations 23,267,98421,475,007Other income (expenses): Interest income 255,918193,742Foreign exchange differences 5,61060, 988Change in fair value of warrants 144,2381,053,862Other income 7,921-Total other income (expenses) 413,6871,308,592Income before income taxes 23,681,67122,783,599Provision for income taxes (6,438,960)(5,800,632)NET INCOME17,242,71116,982,967OTHER COMPREHENSIVE INCOME: Foreign currency translation adjustments 250,4452,956,953COMPREHENSIVE INCOME$17,493,156$19,939,920Earnings per share Basic
1.04Weighted average number of shares outstanding Basic 15,453,65614,784,564Diluted 16,600,05316,339,999NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(AMOUNTS EXPRESSED IN US DOLLARS) December 31,20122011ASSETSCURRENT ASSETS Cash and cash equivalents
54,556,329 Restricted cash -4,170 Accounts receivable 81,49782,516 Inventories 965,251898,871 Prepayments and other receivables 1,321,7261,194,466Total current assets 77,895,00756,736,352OTHER ASSETS Intangible assets, net 1,552,0222,024,593 Property, plant and equipment, net15,991,06012,395,567 Construction in process -5,271,609Total assets$95,438,089$76,428,121LIABILITIES AND STOCKHOLDERS' EQUITYCURRENT LIABILITIES Accounts payable
6,339 Other payables and accruals 1,481,1981,064,045 Taxes payable 2,981,1362,585,738 Due to a related party 150,03680,648 Preferred stock dividend payable 528,528529,851 Warrants liabilities 173144,411Total current liabilities 5,141,0714,411,032Total liabilities 5,141,0714,411,032COMMITMENTS AND CONTINGENCIES (Note 19) STOCKHOLDERS' EQUITY Preferred Stock, $0.001 par value, (1,000,000 shares authorized,
113,010 shares and 147,820 shares issued and outstanding, respectively;
aggregate liquidation preference amount: $3,164,280 and $4,138,960,
plus accrued but unpaid dividend of $528,528 and $529,851,
at December 31, 2012 and 2011, respectively 2,577,3243,371,206 Common stock, $0.001 par value, 190,000,000 shares authorized,
5,907,381 shares issued and 15,863,826 shares outstanding at
December 31, 2012; 14,962,631 shares issued and 14,957,970 shares
outstanding at December 31, 2011 15,90814,963 Additional paid-in capital 19,029,58617,180,280 Statutory reserves 4,960,0233,076,552 Treasury stock, at cost, 43,555 shares and 4,661 shares
as of December 31, 2012 and December 31,2011, respectively (78,767)(9,553) Retained earnings 58,325,93243,167,074 Accumulated other comprehensive income 5,467,0125,216,567Total stockholders' equity 90,297,01872,017,089Total liabilities and stockholders' equity$95,438,089$76,428,121 NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(AMOUNTS EXPRESSED IN US DOLLARS) Year Ended December 31,20122011CASH FLOWS FROM OPERATING ACTIVITIES: Net income
16,982,967Adjustments to reconcile net income to cash provided by operating activities: Change in fair value of warrants (144,238)(1,053,862)IR warrant and restricted stock expense 45,00079,415Depreciation and amortization 1,235,4681,142,635Loss on disposal of property and equipment76,219-Share-based compensation expense 809,664394,207(Increase) decrease in assets: Accounts receivable 1,216187, 353Inventories (63,903)12,885Prepayments and other receivables (123,802)(912,759)Increase (decrease) in liabilities: Accounts payable (6,327)(122,853)Other payables and accruals 412,785277,540Taxes payable 387,3991,808,330Net cash provided by operating activities 19,872,19218,795,858CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of property, plant and equipment (315,257)(7,613,286)Proceeds from disposal of fixed assets -209,177Refund of payments for building construction 1,267,327-Net cash provided by (used in) investing activities 952,070(7,404,109)CASH FLOWS FROM FINANCING ACTIVITIES: Purchase of common stock (69,214)(9,553)Decrease in restricted cash 4,170188,905Advance from a related party 64,82929,309Net cash (used in) provided by financing activities (215)208,661Foreign currency translation adjustment 146,1572,197,071INCREASE IN CASH AND CASH EQUIVALENTS20,970,20413,797,481CASH AND CASH EQUIVALENTS, at the beginning of the year 54,556,32940,758,848CASH AND CASH EQUIVALENTS, at the end of the year$75,526,533$54,556,329NON-CASH TRANSACTIONS Preferred stock and dividend converted into common stock
1,203,346Preferred stock dividend payable 200,382414,308Share-based payment to officers and directors under equity incentive plan 809,664394,207Share-based payment – IR warrants and restricted shares 45,00042,150SUPPLEMENTAL DISCLOSURE INFORMATION Income taxes paid
|SOURCE Nutrastar International Inc.|
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