<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 1998
Commission file number 000-23731
NUTRACEUTICAL INTERNATIONAL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 87-0515089
(State of incorporation) (IRS Employer Identification No.)
1400 Kearns Boulevard, 2nd Floor, Park City, Utah 84060
(Address of principal executive office) (Zip code)
(435) 655-6106
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
YES X NO
----- -----
At February 16, 1999 the registrant had 11,676,047 shares of common stock
outstanding.
<PAGE>
NUTRACEUTICAL INTERNATIONAL CORPORATION
INDEX
<TABLE>
<CAPTION>
Description Page No.
Part I. Financial Information
<S> <C>
Item 1. Financial Statements 3
Condensed Consolidated Balance Sheets - 3
September 30, 1998 and December 31, 1998
Condensed Consolidated Statements of Operations - 4
Three Months Ended December 31, 1997 and 1998
Condensed Consolidated Statements of Cash Flows - 5
Three Months Ended December 31, 1997 and 1998
Notes to Condensed Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of Financial 9
Condition and Results of Operations
</TABLE>
<TABLE>
<CAPTION>
Part II. Other Information
<S> <C>
Item 1. Legal Proceedings 16
Item 6. Exhibits and Reports on Form 8-K 16
</TABLE>
2
<PAGE>
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
NUTRACEUTICAL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited)
(dollars in thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
September 30, December 31,
----------------------------------------
1998 (1) 1998
ASSETS
Current assets:
Cash $ 1,967 $ 213
Accounts receivable, net 9,149 10,716
Inventories, net 23,935 27,892
Prepaid expenses and other assets 1,649 1,754
Deferred income taxes 1,101 1,077
------------------ ------------------
Total current assets 37,801 41,652
Property, plant and equipment, net 10,770 10,871
Goodwill, net 54,375 53,955
Other assets, net 1,362 1,296
------------------ ------------------
$ 104,308 $ 107,774
================== ==================
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current portion of capital lease obligations $ 53 $ 54
Accounts payable 9,614 11,057
Accrued expenses 4,087 3,987
------------------ ------------------
Total current liabilities 13,754 15,098
Long-term debt 37,000 37,500
Capital lease obligations 80 66
Deferred income taxes, net 1,852 2,036
------------------ ------------------
Total liabilities 52,686 54,700
------------------ ------------------
Commitments and contingencies
Stockholders' equity:
Common stock 118 118
Additional paid-in capital 42,515 42,546
Retained earnings 9,277 11,090
Cumulative translation adjustment 13 12
Treasury stock (301) (692)
------------------ ------------------
Total stockholders' equity 51,622 53,074
================== ==================
$ 104,308 $ 107,774
================== ==================
</TABLE>
(1) The condensed consolidated balance sheet as of September 30, 1998 has been
prepared using information from the audited financial statements at that
date.
The accompanying notes are an integral part of these condensed consolidated
financial statements.
3
<PAGE>
NUTRACEUTICAL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(dollars in thousands, except per share data)
<TABLE>
<CAPTION>
<S> <C> <C>
Three months ended December 31,
---------------------------------------------
1997 1998
Net sales $ 25,857 $ 27,213
Cost of sales 13,857 15,024
-------------------- --------------------
Gross profit 12,000 12,189
-------------------- --------------------
Operating expenses:
Selling, general and administrative 7,696 8,213
Amortization of intangibles 332 437
Non-recurring payments to management advisors 75 -
-------------------- --------------------
8,103 8,650
-------------------- --------------------
Income from operations 3,897 3,539
Interest expense, net 1,568 591
-------------------- --------------------
Income before provision for income taxes 2,329 2,948
Provision for income taxes 897 1,135
-------------------- --------------------
Net income $ 1,432 $ 1,813
==================== ====================
Net income per common share:
Basic $ 0.15 $ 0.16
Diluted $ 0.14 $ 0.15
Weighted average common shares outstanding:
Basic 9,308,583 11,672,439
Diluted 10,565,905 12,498,733
</TABLE>
The accompanying notes are an integral part of these condensed consolidated
financial statements.
4
<PAGE>
NUTRACEUTICAL INTERNATIONAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(dollars in thousands)
<TABLE>
<CAPTION>
<S> <C> <C>
Three months ended December 31,
-------------------------------------------
1997 1998
Cash flows from operating activities:
Net income $ 1,432 $ 1,813
Adjustments to reconcile net income to net cash used in
operating activities:
Depreciation and amortization 1,114 1,369
Amortization of debt issuance costs 211 54
Changes in assets and liabilities:
Accounts receivable (723) (1,567)
Inventories (4,502) (3,957)
Prepaid expenses and other assets 219 (105)
Deferred income taxes 204 208
Other assets - (5)
Accounts payable 1,157 1,443
Accrued expenses (563) (100)
------------------ ------------------
Net cash used in operating activities (1,451) (847)
------------------ ------------------
Cash flows from investing activities:
Purchases of property and equipment (668) (1,033)
------------------ ------------------
Net cash used in investing activities (668) (1,033)
------------------ ------------------
Cash flows from financing activities:
Proceeds from long-term debt 1,500 1,000
Payments on long-term debt (3,062) (500)
Payments on capital lease obligations (43) (13)
Receipt of subscriptions receivable 20 -
Proceeds from issuance of common stock - 31
Purchase of treasury shares - (391)
------------------ ------------------
Net cash provided by (used in) financing activities (1,585) 127
------------------ ------------------
Effect of exchange rate changes on cash - (1)
------------------ ------------------
Net decrease in cash (3,704) (1,754)
Cash at beginning of period 4,415 1,967
================== ==================
Cash at end of period $ 711 $ 213
================== ==================
</TABLE>
The accompanying notes are an integral part of these condensed
consolidated financial statements.
5
<PAGE>
NUTRACEUTICAL INTERNATIONAL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
(dollars in thousands, except per share data)
1. INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
In the opinion of management, the accompanying unaudited condensed consolidated
financial statements include all necessary adjustments (consisting of normal
recurring accruals) to present fairly the financial position of Nutraceutical
International Corporation (the Company) and its subsidiaries as of December 31,
1998, the results of its operations for the three months ended December 31, 1997
and 1998, and its cash flows for the three months ended December 31, 1997 and
1998, in conformity with generally accepted accounting principles for interim
financial information applied on a consistent basis. The results for the three
months ended December 31, 1998 are not necessarily indicative of the results to
be expected for the full fiscal year.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been omitted. Accordingly, these financial statements should be read in
conjunction with the Company's Form 10-K for the fiscal year ended September 30,
1998 which was filed with the Securities and Exchange Commission on December 29,
1998.
2. INVENTORIES, NET
Inventories, net of reserves for obsolete and slow moving inventory, are
comprised of the following:
September 30, December 31,
1998 1998
------------- ------------
Raw materials $ 8,562 $ 10,280
Work-in-process 4,981 4,881
Finished goods 10,392 12,731
------------- ------------
$ 23,935 $ 27,892
============= ============
6
<PAGE>
NUTRACEUTICAL INTERNATIONAL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
(dollars in thousands, except per share data)
3. CAPITAL STOCK
The Company has adopted Statement of Financial Accounting Standards No. 128,
Earnings per Share (SFAS 128). Under this statement, both "basic" earnings per
share and "diluted" earnings per share are presented on the face of the income
statement. As required under SFAS 128, both basic earnings per share and diluted
earnings per share for the three months ended December 31, 1997 and 1998 have
been calculated giving retroactive effect to the Company's stock
reclassification and stock split which occurred in conjunction with the
Company's initial public offering in February 1998. The following table provides
a reconciliation of both net income and the number of common shares used in the
computations of basic earnings per share, which utilizes the weighted average
number of common shares outstanding without regard to potential common shares,
and diluted earnings per share, which includes all such shares:
<TABLE>
<CAPTION>
Three months ended December 31,
--------------------------------------------
1997 1998
<S> <C> <C>
Net income (Numerator): $ 1,432 $ 1,813
Weighted average common shares (Denominator):
Basic weighted average common shares 9,308,583 11,672,439
Add: Dilutive effect of stock options and warrants 1,257,322 826,294
------------------- ------------------
Diluted weighted average common shares 10,565,905 12,498,733
=================== ==================
Net income per common share:
Basic $ 0.15 $ 0.16
Diluted $ 0.14 $ 0.15
</TABLE>
7
<PAGE>
NUTRACEUTICAL INTERNATIONAL CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
(dollars in thousands, except per share data)
During the year ended September 30, 1998, the Company's Board of Directors
approved a stock repurchase program to repurchase up to 400,000 shares of the
Company's common stock. As of September 30, 1998, the Company had repurchased
41,800 shares of common stock at an aggregate price of $301. In October 1998,
the Company repurchased an additional 57,500 shares of common stock at an
aggregate price of $391. As of December 31, 1998, a total of 99,300 shares of
common stock had been repurchased by the Company at an aggregate price of $692.
8
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
General
The following discussion and analysis should be read in conjunction with the
response to Part I, Item 1 of this report.
The Company was formed in 1993 by key members of the current management team and
Bain Capital, Inc. to effect a consolidation strategy in the highly fragmented
vitamin, mineral, herbal and other nutritional supplements industry (the VMS
Industry). The Company purchased Solaray, Inc. in October 1993 with a view
toward using it as a platform for future acquisitions of businesses in the VMS
Industry. In fiscal 1995, the Company completed three additional acquisitions
with the purchases of Premier One Products, Inc. in October 1994, Makers of KAL,
Inc. in January 1995 and Monarch Nutritional Laboratories, Inc. in September
1995. In fiscal 1998, the Company completed two additional acquisitions with the
purchases of Action Labs, Inc. in July 1998 and Nutraforce (Canada)
International, Inc. in August 1998.
Results of Operations
The following table sets forth certain consolidated statement of operations data
as a percentage of net sales for the periods indicated:
Three months ended December 31,
-------------------------------
1997 1998
Net sales 100.0% 100.0%
Cost of sales 53.6% 55.2%
------------- -------------
Gross profit 46.4% 44.8%
Selling, general and administrative 29.7% 30.2%
Amortization of intangibles 1.3% 1.6%
Non-recurring payments to management advisors 0.3% -
------------- -------------
Income from operations 15.1% 13.0%
Interest expense, net 6.1% 2.2%
------------- -------------
Income before provision for income taxes 9.0% 10.8%
Provision for income taxes 3.5% 4.1%
============= =============
Net income 5.5% 6.7%
============= =============
Adjusted EBITDA (1) 19.7% 18.0%
============= =============
(1) See "- Adjusted EBITDA."
9
<PAGE>
Comparison of the Three Months Ended December 31, 1998 to the Three Months Ended
December 31, 1997
Net Sales. Net sales increased by $1.3 million, or 5.2%, to $27.2 million for
the three months ended December 31, 1998 (first quarter of fiscal 1999) from
$25.9 million for the three months ended December 31, 1997 (first quarter of
fiscal 1998). This increase in net sales was primarily the result of increased
sales volume which the Company believes was primarily attributable to industry
growth as well as to the success of the Company's acquisitions and new product
introductions.
Gross Profit. Gross profit increased by $0.2 million, or 1.6%, to $12.2
million for the first quarter of fiscal 1999 from $12.0 million for the first
quarter of fiscal 1998. This increase in gross profit was primarily
attributable to growth in sales volume. As a percentage of net sales, gross
profit decreased to 44.8% for the first quarter of fiscal 1999 from 46.4% for
the first quarter of fiscal 1998. This decrease in gross profit as a percentage
of net sales can be attributed to, among other things, higher packaging costs
associated with label conversions that are and were necessitated by FDA
regulations that become effective in March 1999.
Selling, General and Administrative Expenses. Selling, general and
administrative expenses increased by $0.5 million, or 6.7%, to $8.2 million for
the first quarter of fiscal 1999 from $7.7 million for the first quarter of
fiscal 1998. As a percentage of net sales, selling, general and administrative
expenses increased to 30.2% for the first quarter of fiscal 1999 from 29.7% for
the first quarter of fiscal 1998. This increase in selling, general and
administrative expenses as a percentage of net sales was primarily attributable
to the Company's investment in facility consolidation and information systems,
including increased depreciation associated with prior year capital
expenditures.
Amortization of Intangibles. Amortization of intangibles was $0.4 million for
the first quarter of fiscal 1999 and $0.3 million for the first quarter of
fiscal 1998. As a percentage of net sales, amortization of intangibles
increased to 1.6% for the first quarter of fiscal 1999 from 1.3% for the first
quarter of fiscal 1998. This increase is primarily attributable to the
amortization of goodwill associated with the Action Labs, Inc. acquisition in
July 1998.
Non-recurring Payments to Management Advisors. No non-recurring payments to
management advisors were made during the first quarter of fiscal 1999. Non-
recurring payments to management advisors of $0.1 million were recognized for
the first quarter of fiscal 1998 pursuant to an advisory agreement which was
terminated in connection with the Company's initial public offering. The
Company does not expect to incur such payments in the future.
Interest Expense, Net. Interest expense decreased by $1.0 million, or 62.3%,
to $0.6 million for the first quarter of fiscal 1999 from $1.6 million for
the first quarter of fiscal
10
<PAGE>
1998. As a percentage of net sales, interest expense decreased to 2.2% for the
first quarter of fiscal 1999 from 6.1% for the first quarter of fiscal 1998.
This decrease in interest expense was primarily attributable to decreased
indebtedness resulting from the Company's use of proceeds generated in its
initial public offering.
Provision for Income Taxes. The Company's effective tax rate was 38.5% for
both the first quarter of fiscal 1999 and the first quarter of fiscal 1998. In
each fiscal quarter, the effective tax rate is higher than statutory rates
primarily due to the non-deductibility for tax purposes of goodwill amortization
arising from the Solaray acquisition.
Adjusted EBITDA
Adjusted EBITDA (earnings before net interest expense, taxes, depreciation and
amortization) is a commonly reported standard measure that is widely used by
analysts and investors in the VMS Industry. The following Adjusted EBITDA
information provides additional information for determining the ability of the
Company to meet its debt service requirements and for other comparative analyses
of the Company's operating performance relative to other nutritional supplement
companies:
Three months ended December 31,
-------------------------------
1997 1998
Net income $ 1,432 $ 1,813
Provision for income taxes 897 1,135
Interest expense, net (1) 1,568 591
Depreciation and amortization 1,114 1,369
Non-recurring payments to management advisors (2) 75 -
------------- ------------
Adjusted EBITDA $ 5,086 $ 4,908
============= ============
(1) Includes amortization of capitalized debt issuance costs.
(2) Represents payments to management advisors for services provided. The
Company does not expect to incur such payments in the future.
The Company's Adjusted EBITDA decreased $0.2 million to $4.9 million for the
first quarter of fiscal 1999 from $5.1 million for the first quarter of fiscal
1998. Adjusted EBITDA as a percentage of net sales decreased to 18.0% for the
first quarter of fiscal 1999 from 19.7% for the first quarter of fiscal 1998.
Decreased gross margins related to higher packaging costs associated with label
conversions contributed to this decrease in Adjusted EBITDA.
11
<PAGE>
Seasonality
The Company believes that its business is characterized by minor seasonality.
Furthermore, sales to any particular customer can vary substantially from one
quarter to the next based on such factors as industry trends, timing of
promotional discounts, international economic conditions and acquisition-related
activities. Historically, the Company has recorded higher sales volume during
the second fiscal quarter due to increased interest in health-related products
among consumers following the holiday season and in anticipation of the summer
months. The Company does not believe that the impact of seasonality on its
results of operations is material. In addition, the Company's sales of premium
bulk formulations are characterized by periodic shipments to certain customers
and can vary from quarter to quarter.
Year 2000 Issue
Many existing computer programs use only two digits to identify years. These
programs were designed without consideration for the effect of the upcoming
change in century, and if not corrected, could fail or create erroneous results
by or at the year 2000. Essentially all the Company's information technology
based systems, as well as many non-information technology based systems, are
affected by the Year 2000 issue. Specific systems include accounting, payroll,
financial reporting, product formulation and development, manufacturing,
inventory tracking and control, business planning, tax, accounts receivable,
accounts payable, purchasing, distribution and numerous word processing and
similar applications. Non-information technology based systems include
equipment and services containing imbedded microprocessors, such as
manufacturing and bottling equipment, clocks, security systems and building
management systems. The Company also has relationships with numerous third
parties, including material suppliers, utility companies, transportation
companies, and banks and brokerage firms that may be affected by the Year 2000
issue.
Remediation plans have been established for all major systems potentially
affected by the Year 2000 issue. These remediation plans constitute an ongoing
process that the Company expects to adequately complete before the Year 2000.
Identification of areas of potential third-party risk is currently in process.
Plans will be developed and implemented based on the results of such
identification and assessment. No areas of material risk have been identified
to date.
The Company is in the process of determining the risks it would face in the
event certain aspects of its Year 2000 remediation plan fail. It is also
developing contingency plans for all mission-critical processes. Under a "worst
case" scenario, the Company's manufacturing operations would be unable to build
and deliver products in a timely fashion due to internal systems failures and/or
the inability of vendors to deliver raw materials and components. Alternative
suppliers are being identified (where possible) and inventory levels of certain
key components may be temporarily increased. While virtually all internal
systems can be replaced with manual systems on a temporary basis, the failure of
mission-critical systems would have at least a short-term negative affect on
12
<PAGE>
operations. The failure of national and worldwide banking systems could result
in the inability of many businesses, including the Company, to conduct business.
Remediation, risk assessment and contingency plans are expected to be completed
in a timely enough manner before the Company experiences any material adverse
impact to its ongoing operations. The total cost to the Company of achieving
Year 2000 compliance is not expected to exceed $200,000, not including internal
resources. Spending to date totals approximately $20,000.
Liquidity and Capital Resources
The Company had working capital of $26.6 million as of December 31, 1998,
compared to $24.0 million as of September 30, 1998. This increase in working
capital was primarily the result of increases in inventory and accounts
receivable due to higher sales levels and the Company's efforts to expand
inventory levels in connection with the expected consolidation of certain
distribution and other operations, offset by an increase in accounts payable and
a decrease in cash.
Net cash used in operating activities for the three months ended December 31,
1998 was $0.8 million compared to $1.5 million for the comparable period in
fiscal 1998. Net cash used in operating activities decreased primarily due to
increases in net income before depreciation and amortization.
Net cash used in investing activities was $1.0 million for the three months
ended December 31, 1998 compared to $0.7 million for the comparable period in
fiscal 1998. Investing activities during these periods relate entirely to
capital expenditures.
Net cash provided by (used in) financing activities was $0.1 million for the
three months ended December 31, 1998 compared to ($1.6) million for the
comparable period in fiscal 1998. Net cash provided by financing activities
increased primarily due to reduced principal payments on long-term debt.
A key component of the Company's business strategy is to seek to make additional
acquisitions, which could require the Company to incur substantial additional
indebtedness. The Company believes that based on current levels of operations
and anticipated growth, borrowings under the Company's current credit agreement,
together with cash flows from operating activities, will be sufficient to make
anticipated capital expenditures and fund working capital needs for fiscal 1999.
13
<PAGE>
New Accounting Standards
The Financial Accounting Standards Board issued SFAS No. 130, Reporting
Comprehensive Income, which became effective for fiscal years beginning after
December 15, 1997 and established standards for the way companies report and
display comprehensive income and its components in a full set of general purpose
financial statements. The impact of SFAS No. 130 on the Company's financial
statements is immaterial for disclosure in the periods presented.
The Financial Accounting Standards Board issued SFAS No. 131, Disclosures about
Segments of an Enterprise and Related Information, which became effective for
fiscal years beginning after December 15, 1997 and established standards for the
way that public business enterprises report information about operating segments
in financial statements. SFAS No. 131 also established standards for related
disclosures about products and services, geographic areas and major customers.
This statement need not be applied to interim financial statements in the
initial year of its application. The Company is currently assessing the impact
of SFAS No. 131 disclosure requirements on its financial statements.
The American Institute of Certified Public Accountants issued SOP 98-1,
Accounting for the Costs of Computer Software Developed or Obtained for Internal
Use, which became effective for fiscal years beginning after December 15, 1998
and established standards for the way that public business enterprises account
for the costs of internal use computer software. The Company is currently
assessing the impact of SOP 98-1 on its financial statements.
Inflation
Inflation affects the cost of raw materials, goods and services used by the
Company. In recent years, inflation has been modest. The competitive
environment somewhat limits the ability of the Company to recover higher costs
resulting from inflation by raising prices. Overall, product prices have
generally been stable, and the Company seeks to mitigate the adverse effects of
inflation primarily through improved productivity and cost containment programs.
The Company does not believe that inflation has had a material impact on its
results of operations for the periods presented.
Forward-Looking Statements
This Management's Discussion and Analysis of Financial Condition and Results of
Operations (MD&A) contains forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended (the Securities Act).
Such forward-looking statements are based on the beliefs of the Company's
management as well as on assumptions made by and information currently available
to the Company at the time such statements were made. When used in this MD&A,
the words "anticipate," "believe," "estimate," "expect," "intends" and similar
expressions, as they relate to the
14
<PAGE>
Company, are intended to identify forward-looking statements, which include
statements relating to, among other things: (i) the ability of the Company to
continue to successfully compete in the nutritional supplements market; (ii) the
anticipated benefits from new product introductions; (iii) the continued
effectiveness of the Company's sales and marketing strategy; and (iv) the
ability of the Company to continue to successfully develop and launch new
products. Actual results could differ materially from those projected in the
forward-looking statements as a result of the matters discussed herein and
certain economic and business factors, some of which may be beyond the control
of the Company.
15
<PAGE>
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
As discussed in the Registration Statement, the Company's Form 10-K and
other filings, the Company is subject to regulation by a number of federal,
state and foreign agencies and is involved in various legal matters arising
in the normal course of business. Recent material developments in regulatory and
legal matters referred to in the Registration Statement and in previous filings,
as well as new matters, include the following: (i) as disclosed in the
Registration Statement and in previous filings, the FDA has continued its
investigation of certain matters originating with the January 20, 1998
Proposition 65 notice received by Monarch Nutritional Laboratories, Inc. and has
recently subpoenaed documents with respect to its investigation--the Company
continues to cooperate with the FDA in its investigation of these matters; (ii)
the Company has recently been sued by American Home Products, the owner of the
Solgar line of dietary supplements. The lawsuit alleges that the Company's
registered mark Solar Green infringes on the registered mark Solgar that is now
owned by American Home Products.
The Company carries insurance coverage in the types and amounts
that management considers reasonably adequate to cover the risks it faces in the
industry in which it competes. There can be no assurance, however, that such
insurance coverage will be adequate to cover all losses which the Company may
incur in future periods or that coverage will be available for all of the types
of claims the Company faces or may face.
In the opinion of management, the Company's liability, if any, arising from
regulatory and legal proceedings related to these matters, and others in which
it is involved, is not expected to have a material adverse impact on the
Company's financial position, results of operations or cash flows.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits:
27.1 Financial Data Schedule
(b) Reports on Form 8-K:
None
16
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
NUTRACEUTICAL INTERNATIONAL CORPORATION
(Registrant)
Dated: February 16, 1999 By: /s/ Leslie M. Brown, Jr.
----------------- -------------------------
Leslie M. Brown, Jr.
Senior Vice President, Finance and Chief Financial
Officer
17
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
NUTRACEUTICAL INTERNATIONAL CORPORATION'S FINANCIAL POSITION AS OF DECEMBER 31,
1998 AND THE RESULTS OF ITS OPERATIONS FOR THE THREE MONTHS ENDED DECEMBER 31,
1998 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-START> OCT-01-1998
<PERIOD-END> DEC-31-1998
<CASH> 213
<SECURITIES> 0
<RECEIVABLES> 11,838
<ALLOWANCES> 1,122
<INVENTORY> 27,892
<CURRENT-ASSETS> 41,652
<PP&E> 20,121
<DEPRECIATION> (9,250)
<TOTAL-ASSETS> 107,774
<CURRENT-LIABILITIES> 15,098
<BONDS> 0
0
0
<COMMON> 118
<OTHER-SE> 52,956
<TOTAL-LIABILITY-AND-EQUITY> 107,774
<SALES> 27,213
<TOTAL-REVENUES> 27,213
<CGS> 15,024
<TOTAL-COSTS> 15,024
<OTHER-EXPENSES> 8,650
<LOSS-PROVISION> 46
<INTEREST-EXPENSE> 591
<INCOME-PRETAX> 2,948
<INCOME-TAX> 1,135
<INCOME-CONTINUING> 1,813
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1,813
<EPS-PRIMARY> 0.16
<EPS-DILUTED> 0.15
</TABLE>
