HARBIN, China, Nov. 13, 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"), 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
Nine Months Ended September 30, 2013 Financial Highlights
"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: 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.
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NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) (AMOUNTS EXPRESSED IN US DOLLARS) For the Three MonthsFor the Nine MonthsEnded September 30,Ended September 30,2013201220132012NET REVENUE
24,468,889Cost of goods sold (2,159,255)(1,559,180)(6,662,959)(5,809,842)GROSS PROFIT 8,776,6956,013,26323,558,46118,659,047Selling 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 7,752,4005,111,48920,340,64315,580,022Other income (expenses): Interest income 72,63359,957235,122193,839Foreign exchange differences 21,517(3,440)47,974(14,607)Change in fair value of warrants -(25,915)173114,845Total other income 94,15030,602283,269294,077Income before income taxes 7,846,5505,142,09120,623,91215,874,099Provision for income taxes (2,066,105)(1,397,501)(5,465,974)(4,278,897)NET INCOME 5,780,4453,744,59015,157,93811,595,202OTHER COMPREHENSIVE INCOME: Foreign currency translation adjustments 521,176(199,602)2,150,468(486,711)COMPREHENSIVE INCOME
11,108,491Earnings per share: Basic
0.70Weighted average number of shares
outstanding: Basic 15,919,26115,402,19615,882,50715,376,476Diluted 17,060,11916,532,29617,018,12216,515,212
NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (AMOUNTS EXPRESSED IN US DOLLARS) For the Nine Months EndedSeptember 30,20132012CASH FLOWS FROM OPERATING ACTIVITIES: Net income
11,595,202Adjustments to reconcile net income to cash provided by operating activities: Change in fair value of warrants (173)(114,845)Depreciation and amortization 1,101,320926,272Share-based compensation expense – employees142,653313,262Share-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 127,818109,625Increase (decrease) in liabilities: Accounts payable (6,323)Other payables and accruals 421,181277,756Taxes payable (489,557)(737,396)Net cash provided by operating activities 15,814,50612,040,830CASH FLOWS FROM INVESTING ACTIVITIES: Refund of prepayments for cold studios -1,266,424Purchase of property, plant and equipment -(15,903)Net cash provided by investing activities -1,250,521CASH FLOWS FROM FINANCING ACTIVITIES: Decrease in restricted cash -4,170Purchase of common stock -(69,214)(Repayment to) advance from related party (36,106)82,674Net cash (used in) provided by financing activities (36,106)17,630Foreign currency translation adjustment 1,855,165(390,824)INCREASE IN CASH AND CASH EQUIVALENTS17,633,56512,918,157CASH AND CASH EQUIVALENTS, at the beginning of the period 75,526,53354,556,329CASH AND CASH EQUIVALENTS, at the end of the period$93,160,098$67,474,486NON-CASH TRANSACTIONS Preferred stock and dividend converted into common stock
995,587Preferred stock dividend payable 170,601218,685Share-based payment to officers and directors under equity incentive plan 142,653313,262Share-based payment to non-employees4,767-SUPPLEMENTAL DISCLOSURE INFORMATION Income taxes paid
4,773,432 NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (AMOUNTS EXPRESSED IN US DOLLARS)September 30,December 31,20132012(Unaudited)ASSETSCURRENT ASSETS Cash and cash equivalents
75,526,533 Accounts receivable 89,73781,497 Inventories 1,638,953965,251 Prepayments and other receivables 1,222,0771,321,726Total current assets 96,110,86577,895,007OTHER ASSETS Intangible assets, net 1,220,5741,552,022 Property, plant and equipment, net 15,601,55515,991,060Total assets$112,932,994$95,438,089LIABILITIES AND STOCKHOLDERS' EQUITYCURRENT LIABILITIES Other payables and accruals
1,481,198 Taxes payable 2,552,9242,981,136 Due to a related party 159,763150,036 Preferred stock dividend payable 699,129528,528 Warrants liabilities -173Total current liabilities 5,350,7515,141,071Total liabilities 5,350,7515,141,071COMMITMENTS 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
$699,129 and $528,528, at September 30, 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; 15,953,826 shares and 15,863,826 shares
outstanding at September 30, 2013 and December 31, 2012, respectively 15,99815,908 Additional paid-in capital 19,176,91619,029,586 Statutory reserves 4,966,4574,960,023 Treasury stock, at cost, 43,555 shares as of September 30, 2013 and
December 31, 2012 (78,767)(78,767) Retained earnings 73,306,83558,325,932 Accumulated other comprehensive income 7,617,4805,467,012Total stockholders' equity 107,582,24390,297,018Total liabilities and stockholders' equity$112,932,994$95,438,089
|SOURCE Nutrastar International Inc.|
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