WEB NEWS Special Dividend
PARK CITY, Utah, December 11, 2012/
PR Newswire. Nutraceutical International Corporation (NASDAQ: NUTR) today announced that its Board of Directors has declared a first ever, special cash dividend on Nutraceutical International Corporation common stock of $1.00 per share payable December 28, 2012, to shareholders of record on December 21, 2012. The aggregate amount of payments to be made in connection with this special dividend will be approximately $9.8 million. “Today’s announcement of a $1.00 special dividend, payable prior to the end of the calendar year, provides us with an opportunity to return some capital to our shareholders,” said Bill Gay, chairman and chief executive officer. “We have had a strong year, our business fundamentals remain strong, we believe the company is well positioned to move forward aggressively and we are confident in our ability to fund our growth and acquisition plans and continue our stock repurchase program.”
Comments & Business Outlook
Bill Gay, chairman and chief executive officer, commented, “Our fiscal 2012 annual net sales reached $200 million. Fiscal 2012 net sales growth of 6.5% resulted primarily from acquisitions and increased branded domestic sales. Net sales from our international markets continued to be soft throughout the year. Adjusted EBITDA grew to over $35 million for the fiscal year. Substantial progress has been made in maximizing utilization of our manufacturing facilities but we believe that more synergies are possible in fiscal 2013. We will continue to focus on raw material cost savings, labor expense management and consolidating our marketing and sales infrastructure.” Mr. Gay stated, “The Health and Natural Foods Markets that we serve appear to remain strong with ongoing expansions at many chain stores in spite of challenges in other retail segments and in national and international markets. We will continue to make acquisitions that complement our current brands and product offerings. All in all, we believe it was a very good year when one considers that we were confronted by increasingly difficult economic headwinds. We remain optimistic but cautious as we approach next year. Our investors, management and employees are very much appreciated.”
Research
The GeoTeam ® is taking a closer look at Nutraceutical Intl.:
After 11 quarters of inconsistent EPS growth, NUTR has posted four consecutive quarters of 30%+ EPS growth. It appears that recent acquisitions have begun to have a synergistic impact on margins.
What we don't like:
NUTR has been stuck in a tight revenue range of $36.0 million to $48.0 million for 15 straight quarters . Although positive, its recent financial press release contained no guidance or insight into revenue outlook.
Mr. Gay continued, "We believe that the best-managed health food stores have been able to weather the ongoing US economic chaos because their customers place high priorities on personal health and individual well being. Retail store innovation, competitive expansion and new product selection has been stronger in many of the Western States. We continue to make substantial investments in our manufacturing and distribution operations to facilitate future acquisitions and internal growth opportunities. As facility improvements are completed, there are additional areas where savings will be generated. We appreciate the support our stakeholders provide us in allowing us to execute a plan based on fundamental business principles and long-term growth. We firmly believe a good business plan combined with a well-managed company produces the most stable shareholder value and positions the company to take advantage of opportunities as they arise."
If available, we will listen to the conference call replays to see if management has addressed our concerns.
