HARBIN, China, Aug. 12, 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 quarter and six months ended June 30, 2013.
Three Months Ended June 30, 2013 Financial Highlights
Six Months Ended June 30, 2013 Financial Highlights
"In line with expectations, our financial results showed continued top-line growth, coupled with the robust progression of our bottom line. Gross margin expanded in the second quarter by 1.6% as a result of economics of scale due to increased capacity as well as an attractive product mix. The majority of revenues, roughly 74% in Q2, stemmed from our higher margin commercially cultivated Cordyceps, which saw sales hit $8.8 million, up 17.1% year-over-year. Premium functional health beverages contributed $2.5 million in the quarter, up 26.7% as a result of prior company-led marketing initiatives specifically designed to grow this market," stated, Ms. Lianyun Han, CEO of Nutrastar.
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 2013 revenue guidance. Demand for our premium consumer products remains steadfast and robust, especially among the affluent and elderly population. We remain committed to expanding our market, growing our brand awareness and bringing more products into the hands of health-conscious consumers. To this end, we plan to embark on new, fresh campaigns geared towards better informing and promoting the health benefits of our premium consumer products, especially our on-the-go functional health beverages and instant soluble drinks, which we believe will be key market drivers in the future. We look forward to updating our shareholders and the investment community on our progress on these initiatives in the coming months. Nutrastar is committed to full disclosure, we encourage any interested investor to visit our Cordyceps production facilities and experience the company's products firsthand."
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 over last year.
Nutrastar is providing the above guidance as a convenience to investors and assumes no obligation to update it.
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 June 30, 2013, please refer to the Quarterly Report Form 10-Q to be filed with the Securities and Exchange Commission on or about August 12, 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, with 330 employees, including 21 in R&D and 149 in sales and marketing, is located in Harbin, with its main operations in Heilongjiang Province. 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, financial guidance, 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 SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(AMOUNTS EXPRESSED IN US DOLLARS) For the Three MonthsFor the Six MonthsEnded June 30,Ended June 30,2013201220132012NET REVENUE
16,896,446Cost of goods sold (2,731,416)(2,472,094)(4,503,704)(4,250,662)GROSS PROFIT 9,142,9187,563,33414,781,76612,645,784Selling expenses (473,793)(465,650)(904,256)(848,008)General and administrative expenses (696,752)(664,538)(1,289,267)(1,329,243)Income from operations 7,972,3736,433,14612,588,24310,468,533Other income (expenses): Interest income 78,74866,664162,489133,882Foreign exchange differences 31,644(13,571)26,457(11,167)Change in fair value of warrants 173144,788173140,759Total other income 110,565197,881189,119263,474Income before income taxes 8,082,9386,631,02712,777,36210,732,007Provision for income taxes (2,120,129)(1,729,994)(3,399,869)(2,881,396)NET INCOME 5,962,8094,901,0339,377,4937,850,611Earnings per share: Basic
0.48Weighted average number of shares outstanding: Basic 15,863,82615,384,18015,863,82615,370,851Diluted 16,993,92616,517,69916,993,92616,513,952 NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS
(AMOUNTS EXPRESSED IN US DOLLARS) June 30,December 31,20132012(Unaudited)ASSETSCURRENT ASSETS Cash and cash equivalents
75,526,533 Accounts receivable 91,53181,497 Inventories 1,250,539965,251 Prepayments and other receivables 449,9211,321,726Total current assets 89,639,91877,895,007OTHER ASSETS Intangible assets, net 1,335,9561,552,022 Property, plant and equipment, net 15,771,79015,991,060Total assets$106,747,664$95,438,089LIABILITIES AND STOCKHOLDERS' EQUITYCURRENT LIABILITIES Other payables and accruals
1,481,198 Taxes payable 2,833,0022,981,136 Due to a related party 159,360150,036 Preferred stock dividend payable 640,774528,528 Warrants liabilities -173Total current liabilities 5,447,4945,141,071Total liabilities 5,447,4945,141,071COMMITMENTS 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 $640,774
and $528,528, at June 30, 2013 and December 31, 2012, respectively 2,577,3242,577,324 Common stock, $0.001 par value, 190,000,000 shares authorized,
5,907,381 shares issued and 15,863,826 shares outstanding at
June 30, 2013 and December 31, 201215,90815,908 Additional paid-in capital 19,138,19919,029,586 Statutory reserves 4,964,5624,960,023 Treasury stock, at cost, 43,555 shares
as of June 30, 2013 and December 31, 2012(78,767)(78,767) Retained earnings 67,586,64058,325,932 Accumulated other comprehensive income 7,096,3045,467,012Total stockholders' equity 101,300,17090,297,018Total liabilities and stockholders' equity$106,747,664$95,438,089 NUTRASTAR INTERNATIONAL INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(AMOUNTS EXPRESSED IN US DOLLARS) For the Six Months EndedJune 30,20132012CASH FLOWS FROM OPERATING ACTIVITIES: Net income
7,850,611Adjustments to reconcile net income to cash provided by operating activities: Change in fair value of warrants (173)(140,759)Depreciation and amortization 731,128618,482Share-based compensation expense 108,613207,964(Increase) decrease in assets: Accounts receivable (8,537)(6,744)Inventories (265,896)(492,222)Prepayments and other receivables 885,634912,912Increase (decrease) in liabilities: Accounts payable -(6,332)Other payables and accruals 305,355155,434Taxes payable (197,651)(217,584)Net cash provided by operating activities 10,935,9668,881,762CASH FLOWS FROM INVESTING ACTIVITIES: Advances from sale of fixed assets -1,268,351Purchase of property, plant and equipment -(15,926)Net cash provided by investing activities -1,252,425CASH FLOWS FROM FINANCING ACTIVITIES: Decrease in restricted cash -4,170Purchase of common stock -(69,214)(Repayment to) advance from related party (27,009)77,143Net cash (used in) provided by financing activities (27,009)12,099Foreign currency translation adjustment 1,412,437(232,209)INCREASE IN CASH AND CASH EQUIVALENTS12,321,3949,914,077CASH AND CASH EQUIVALENTS, at the beginning of the period 75,526,53354,556,329CASH AND CASH EQUIVALENTS, at the end of the period$87,847,927$64,470,406NON-CASH TRANSACTIONS Preferred stock and dividend converted into common stock
995,587Preferred stock dividend payable 112,246138,874Share-based payment to officers and directors under equity incentive plan 108,613207,964SUPPLEMENTAL DISCLOSURE INFORMATION Income taxes paid
|SOURCE Nutrastar International Inc.|
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