PARK CITY, Utah—A strong fourth quarter (4Q) finish marked an otherwise down fiscal year 2009 (FY09) for Nutraceutical International Corp. (NASDAQ:NUTR), which saw annual sales dip to $162.3 million from $166.9 million sold the previous year, and annual net earnings plummet to a net loss of $14.0 million or $1.29 per share from a net gain of $11.9 million or $1.07 per share in 2008. Affecting the FY09 earnings was a pre-tax, non-cash goodwill impairment charge of $37.5 million charged to the second quarter.
Sales in 4Q09 were up to $41.4 million from $40.9 million for the same quarter in 2008, and 4Q09 net income was $3.2 million, or $0.29 diluted earnings per share, doubling net income of $1.5 million, or $0.14 for 4Q08.
According to Bill Gay, chairman and CEO, health and natural food store sales improved in the fourth quarter despite the ongoing economic uncertainties. “Net income for the fourth quarter remained solid and cash flows increased as a result of inventory reductions,” he added. However, gross margins declined slightly due to increased raw material prices and manufacturing overhead costs related to inventory decreases. “Selling, general and administrative expense improvements throughout the fiscal year offset gross margin decreases,” he countered. “Our core customers are regaining confidence in their businesses and we remain optimistic about the coming year. Ongoing sales programs and promotions appear to be benefiting stores, consumers and our company. It is encouraging that the public market has responded favorably to the company's recent addition to the Russell 2000 stock index and we believe our financial strength and position as a value based stock will bring awareness to new investors this coming year."
