Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2015 | Jul. 27, 2015 | |
Document and Entity Information | ||
Entity Registrant Name | NUTRACEUTICAL INTERNATIONAL CORP | |
Entity Central Index Key | 1,050,007 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 9,532,469 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Current assets: | ||
Cash | $ 4,902 | $ 6,232 |
Accounts receivable, net | 14,186 | 15,118 |
Inventories | 59,318 | 57,914 |
Prepaid expenses and other current assets | 2,774 | 3,364 |
Deferred income taxes | 1,245 | 1,222 |
Total current assets | 82,425 | 83,850 |
Property, plant and equipment, net | 78,350 | 79,244 |
Goodwill | 24,384 | 23,622 |
Intangible assets, net | 20,108 | 21,965 |
Other non-current assets | 1,692 | 1,203 |
Deferred income taxes, net | 3,946 | 4,894 |
Total assets | 210,905 | 214,778 |
Current liabilities: | ||
Accounts payable | 14,218 | 14,874 |
Accrued expenses | 5,852 | 6,835 |
Total current liabilities | 20,070 | 21,709 |
Long-term debt | 32,000 | 43,000 |
Other non-current liabilities | 171 | 456 |
Total liabilities | 52,241 | 65,165 |
Stockholders' equity: | ||
Common stock | 96 | 97 |
Additional paid-in capital | 8,488 | 11,112 |
Retained earnings | 150,244 | 138,347 |
Accumulated other comprehensive income | (139) | 79 |
Treasury stock | (25) | (22) |
Total stockholders' equity | 158,664 | 149,613 |
Total liabilities and stockholders' equity | $ 210,905 | $ 214,778 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||
Net sales | $ 54,382 | $ 55,625 | $ 162,830 | $ 162,034 |
Cost of sales | 27,955 | 28,473 | 83,293 | 81,660 |
Gross profit | 26,427 | 27,152 | 79,537 | 80,374 |
Operating expenses | ||||
Selling, general and administrative | 19,061 | 19,762 | 58,404 | 57,625 |
Amortization of intangible assets | 729 | 704 | 2,189 | 1,940 |
Income from operations | 6,637 | 6,686 | 18,944 | 20,809 |
Interest and other expense, net | 257 | 356 | 827 | 1,024 |
Income before provision for income taxes | 6,380 | 6,330 | 18,117 | 19,785 |
Provision for income taxes | 1,930 | 2,333 | 6,220 | 7,329 |
Net income | 4,450 | 3,997 | 11,897 | 12,456 |
Other comprehensive income (loss) | ||||
Foreign currency translation adjustment, net of tax | 112 | 1 | (218) | 49 |
Comprehensive income | $ 4,562 | $ 3,998 | $ 11,679 | $ 12,505 |
Net income per common share | ||||
Basic (in dollars per share) | $ 0.47 | $ 0.41 | $ 1.24 | $ 1.27 |
Diluted (in dollars per share) | $ 0.47 | $ 0.41 | $ 1.24 | $ 1.27 |
Weighted average common shares outstanding | ||||
Basic (in shares) | 9,561,008 | 9,798,393 | 9,612,171 | 9,826,516 |
Dilutive effect of stock options (in shares) | 2,991 | 8,400 | 4,920 | 9,150 |
Diluted (in shares) | 9,563,999 | 9,806,793 | 9,617,091 | 9,835,666 |
CONDENSED CONSOLIDATED STATEME4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 11,897 | $ 12,456 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 9,702 | 8,357 |
Amortization of deferred financing fees | 99 | 138 |
Losses on disposals of property, plant and equipment | 9 | 2 |
Tax benefit from stock option exercises | (55) | (51) |
Deferred income taxes, net | 925 | 289 |
Changes in assets and liabilities, net of effects of acquisitions: | ||
Accounts receivable, net | 964 | (377) |
Inventories | (1,340) | (4,601) |
Prepaid expenses and other current assets | 605 | (484) |
Other non-current assets | (107) | (114) |
Accounts payable | (761) | (197) |
Accrued expenses | (774) | 705 |
Other non-current liabilities | 19 | 2 |
Net cash provided by operating activities | 21,183 | 16,125 |
Cash flows from investing activities: | ||
Acquisitions of businesses | (1,266) | (16,211) |
Purchases of property, plant and equipment | (6,523) | (8,577) |
Net cash used in investing activities | (7,789) | (24,788) |
Cash flows from financing activities: | ||
Proceeds from debt | 2,500 | 19,500 |
Payments on debt | (13,500) | (10,500) |
Payments of deferred financing fees | (420) | |
Proceeds from issuances of common stock | 432 | 193 |
Purchases of common stock for treasury | (3,618) | (3,798) |
Tax benefit from stock option exercises | 55 | 51 |
Net cash provided by (used in) financing activities | (14,551) | 5,446 |
Effect of exchange rate changes on cash | (173) | 33 |
Net decrease in cash | (1,330) | (3,184) |
Cash at beginning of period | 6,232 | 8,235 |
Cash at end of period | $ 4,902 | $ 5,051 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Jun. 30, 2015 | |
BASIS OF PRESENTATION | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION Nutraceutical International Corporation and its subsidiaries (the "Company") is an integrated manufacturer, marketer, distributor and retailer of branded nutritional supplements and other natural products sold primarily to and through domestic health and natural food stores. Internationally, the Company markets and distributes branded nutritional supplements and other natural products to and through health and natural product distributors and retailers. The Company's core business strategy is to acquire, integrate and operate businesses in the natural products industry that manufacture, market and distribute branded nutritional supplements. The Company believes that the consolidation and integration of these acquired businesses provide ongoing financial synergies through increased scale and market penetration, as well as strengthened customer relationships. The Company manufactures and sells nutritional supplements and other natural products under numerous brands, including Solaray ®, KAL ®, Nature's Life ®, LifeTime ®, Natural Balance ® , NaturalCare ®, Health from the Sun ®, Pioneer ®, Nutra BioGenesis ™, Life-flo ®, Organix South ®, Heritage Store ® and Monarch Nutraceuticals ™. The Company owns neighborhood natural food markets, which operate under the trade names The Real Food Company ™, Thom's Natural Foods ™, Cornucopia Community Market™ and Granola's ™. The Company also owns health food stores, which operate under various trade names, including Fresh Vitamins ™ and Peachtree Natural Foods ®. In the opinion of management, the accompanying unaudited condensed consolidated financial statements include all necessary adjustments, consisting of normal recurring adjustments, to state fairly the consolidated financial position of the Company as of June 30, 2015, the results of its operations for the three and nine months ended June 30, 2015 and 2014 and its cash flows for the nine months ended June 30, 2015 and 2014, in conformity with accounting principles generally accepted in the United States of America ("US GAAP") for interim financial information applied on a consistent basis. Results for the three and nine months ended June 30, 2015 are not necessarily indicative of the results to be expected for the full fiscal year. Certain information and footnote disclosures normally included in the annual financial statements prepared in accordance with US GAAP 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, 2014, which was filed with the Securities and Exchange Commission on November 20, 2014. Use of Estimates The preparation of these financial statements in conformity with US GAAP required management to make estimates and assumptions that affected the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of net sales and expenses during the reported periods. Significant estimates included values and lives assigned to acquired intangible assets, reserves for customer returns and allowances, uncollectible accounts receivable, valuation adjustments for slow-moving, obsolete and/or damaged inventory and valuation and recoverability of long-lived assets. Actual results may differ from these estimates. New Accounting Standards In May 2014, the Financial Accounting Standards Board ("FASB") issued authoritative guidance, which is included in Accounting Standards Codification ("ASC") 606, " Revenue from Contracts with Customers ." This guidance provides a single, comprehensive revenue recognition model for all contracts with customers and requires that a company recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. In July 2015, the FASB delayed the effective date of this guidance by one year. As a result, this guidance is effective for the Company as of October 1, 2018 and shall be applied either retrospectively to each period presented or as a cumulative-effect adjustment as of the date of adoption. The Company is currently evaluating the impact this standard may have on its consolidated financial statements. The Company periodically reviews new accounting standards that are issued. Although some of these accounting standards may be applicable to the Company, the Company has not identified any other new standards that it believes merit further discussion, and the Company expects that none would have a significant impact on its consolidated financial statements. |
ACCOUNTS RECEIVABLE
ACCOUNTS RECEIVABLE | 9 Months Ended |
Jun. 30, 2015 | |
ACCOUNTS RECEIVABLE | |
ACCOUNTS RECEIVABLE | 2. ACCOUNTS RECEIVABLE Accounts receivable, net of allowances for sales returns and doubtful accounts, consisted of the following: June 30, 2015 September 30, 2014 Accounts receivable $ $ Less allowances ) ) $ $ |
INVENTORIES
INVENTORIES | 9 Months Ended |
Jun. 30, 2015 | |
INVENTORIES | |
INVENTORIES | 3. INVENTORIES Inventories were comprised of the following: June 30, 2015 September 30, 2014 Raw materials $ $ Work-in-process Finished goods $ $ |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Jun. 30, 2015 | |
ACQUISITIONS. | |
ACQUISITIONS | 4. ACQUISITIONS During the nine months ended June 30, 2015, the Company made two acquisitions of businesses. On November 18, 2014, the Company acquired certain operating assets of Agape Health Products. On June 4, 2015, the Company acquired certain operating assets of ProClay, LLC. The aggregate purchase price of these acquisitions was $1,266 in cash. During the nine months ended June 30, 2014, the Company made six acquisitions of businesses. On October 16, 2013, the Company acquired certain operating assets of TCCD International, Inc. On November 25, 2013, the Company acquired certain operating assets of Green Luxury Brands, Inc. On December 19, 2013, the Company acquired certain operating assets of Twinlab Corporation. On January 15, 2014, the Company acquired certain operating assets of Peachtree Natural Foods, Inc. On April 11, 2014, the Company acquired certain operating assets of Northwest Health Foods, Inc. On April 17, 2014, the Company acquired certain operating assets of Bio-Genesis Nutraceuticals, Inc. The aggregate purchase price of these acquisitions was $16,211 in cash. The Condensed Consolidated Statements of Comprehensive Income and the Condensed Consolidated Statements of Cash Flows presented herein include the activities of these acquired businesses from their respective dates of acquisition. The expected long-term sales and expense synergies of acquired businesses generally are not realized immediately following acquisition, as certain transition and integration matters must be completed. These acquisitions are in keeping with the Company's business strategy of consolidating the fragmented industry in which it competes. These acquisitions were accounted for using the acquisition method of accounting. Accordingly, the aggregate purchase price was assigned to the assets acquired based on their fair values at their respective dates of acquisition. The excess of aggregate purchase price over the fair values of the assets acquired was classified as goodwill. The goodwill relates to expected synergies from these acquisitions. The following reflects the final allocation of the aggregate purchase price for these acquisitions to the aggregate assets acquired: Fiscal 2015 Acquisitions Fiscal 2014 Acquisitions Aggregate assets acquired: Current assets $ $ Goodwill Intangible assets $ $ The fiscal 2015 and fiscal 2014 acquired intangible assets totaling $393 and $5,803, respectively, related to trademarks, tradenames and customer relationships, and are being amortized over periods of two to twelve years for financial statement purposes. The fiscal 2015 and fiscal 2014 acquired intangible assets are expected to be deductible for tax purposes over fifteen years. Goodwill, which is not subject to amortization for financial statement purposes, of $762 for fiscal 2015 and $7,675 for fiscal 2014, is expected to be deductible for tax purposes over fifteen years. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Jun. 30, 2015 | |
GOODWILL AND INTANGIBLE ASSETS | |
GOODWILL AND INTANGIBLE ASSETS | 5. GOODWILL AND INTANGIBLE ASSETS The change in the carrying amount of goodwill from September 30, 2014 to June 30, 2015 was as follows: Goodwill Accumulated Impairment Net Balance as of October 1, 2014 $ $ ) $ Goodwill attributable to fiscal 2015 acquisition — Balance as of June 30, 2015 ) The carrying amounts of intangible assets at June 30, 2015 and September 30, 2014 were as follows: June 30, 2015 September 30, 2014 Gross Carrying Amount(1) Accumulated Amortization(1) Net Carrying Amount Gross Carrying Amount(1) Accumulated Amortization(1) Net Carrying Amount Weighted- Average Amortization Period (Years) Intangible assets subject to amortization: Trademarks/tradenames/patents $ $ ) $ $ $ ) $ Customer relationships/distribution rights/ non-compete agreements ) ) Developed software and technology ) — ) — ) ) Intangible assets not subject to amortization: Trademarks/tradenames/licenses — — $ $ ) $ $ $ ) $ (1) Amounts include the impact of foreign currency translation adjustments. Estimated future amortization expense related to the June 30, 2015 net carrying amount of $11,308 for intangible assets subject to amortization is as follows: Year Ending September 30, Estimated Amortization Expense 2015(1) $ 2016 2017 2018 2019 Thereafter $ (1) Estimated amortization expense for the year ending September 30, 2015 includes only amortization to be recorded after June 30, 2015. General and economic conditions may continue to impact retail and consumer demand, as well as the market price of the Company's common stock, and could negatively impact the Company's future operating performance, cash flow and/or stock price and could result in additional goodwill and/or intangible asset impairment charges being recorded in future periods. Also, the Company periodically reviews its brands to achieve marketing, sales and operational synergies. These reviews could result in brands being consolidated or discontinued and could result in intangible asset impairment charges being recorded in future periods. Such goodwill and/or intangible asset impairment charges could materially impact the Company's consolidated financial statements. The valuation of goodwill and intangible assets is subject to a high degree of judgment, uncertainty and complexity. |
DEBT
DEBT | 9 Months Ended |
Jun. 30, 2015 | |
DEBT | |
DEBT | 6. DEBT Debt was comprised of the following: June 30, 2015 September 30, 2014 Long-term debt—revolving credit facility $ $ The carrying value of the Company's debt approximates fair value at June 30, 2015 and September 30, 2014. Estimated fair values for debt have been determined based on borrowing rates currently available to the Company for bank loans with similar terms and maturities and are classified as Level 2 (significant observable inputs other than quoted prices) in the FASB's fair value hierarchy. On November 4, 2014, the Company amended its revolving credit facility (the "Credit Agreement"). The Credit Agreement extends the term of the credit facility to November 2019, increases the available credit borrowings to $100,000 with no automatic reductions and provides an accordion feature that can increase the available credit borrowings to $130,000, subject to approval by the lenders and compliance with certain covenants and conditions. The lenders under the Credit Agreement continue to be Rabobank International and Wells Fargo. To date, the Company has not experienced any difficulties in accessing the available funds under the Credit Agreement. Deferred financing fees of $420 related to the Credit Agreement are being amortized over the term of the Credit Agreement. At June 30, 2015, the Company had outstanding revolving credit borrowings of $32,000 under the Credit Agreement. Borrowings under the Credit Agreement are collateralized by substantially all assets of the Company. At the Company's election, borrowings bear interest at the applicable Eurodollar Rate plus a variable margin or at a Base Rate plus a variable margin. Base Rate is the higher of: (i) the Prime Lending Rate, (ii) the Federal Funds Rate plus 0.5% or (iii) the one-month Eurodollar Rate multiplied by the Statutory Reserve Rate plus 1.0% (capitalized terms are defined in the Credit Agreement, a copy of which was filed with the Securities and Exchange Commission on November 5, 2014). At June 30, 2015, the applicable weighted-average interest rate for outstanding borrowings was 1.78%. The Company is also required to pay a variable quarterly fee on the unused balance under the Credit Agreement. At June 30, 2015, the applicable rate was 0.25%. Accrued interest on Eurodollar Rate borrowings is payable based on elected intervals of one, two or three months. Accrued interest on Base Rate borrowings is payable quarterly. The Credit Agreement matures on November 4, 2019, and the Company is required to repay all principal and interest outstanding under the Credit Agreement on such date. The Credit Agreement contains restrictive covenants, including limitations on incurring other indebtedness and requirements that the Company maintain certain financial ratios. As of June 30, 2015, the Company was in compliance with the restrictive covenants. Upon the occurrence of a default, the lender has various remedies or rights, which may include proceeding against the collateral or requiring the Company to repay all amounts outstanding under the Credit Agreement. |
SHARE PURCHASES
SHARE PURCHASES | 9 Months Ended |
Jun. 30, 2015 | |
SHARE PURCHASES | |
SHARE PURCHASES | 7. SHARE PURCHASES During the three and nine months ended June 30, 2015, the Company purchased 63,276 and 180,301 shares of common stock for an aggregate price of $1,266 and $3,618, respectively. During the three and nine months ended June 30, 2014, the Company purchased 99,541 and 156,661 shares of common stock for an aggregate price of $2,368 and $3,798, respectively. All of these shares of common stock held in treasury were retired prior to June 30 in the respective quarter of purchase, except at June 30, 2015 and 2014, the Company held 1,000 and 9,673 shares of common stock in treasury, respectively. As of June 30, 2015, the Company was permitted to purchase up to 551,723 additional shares under its approved purchase plan, with no expiration date or restrictions. The Company accounts for treasury shares using the cost method. |
STOCK OPTIONS AND OTHER EQUITY
STOCK OPTIONS AND OTHER EQUITY AWARDS | 9 Months Ended |
Jun. 30, 2015 | |
STOCK OPTIONS AND OTHER EQUITY AWARDS | |
STOCK OPTIONS AND OTHER EQUITY AWARDS | 8. STOCK OPTIONS AND OTHER EQUITY AWARDS The following table summarizes stock option activity during the nine months ended June 30, 2015: Number of Options Weighted-Average Exercise Price Options outstanding and exercisable at September 30, 2014 $ Exercised ) Options outstanding and exercisable at June 30, 2015 All stock options outstanding at June 30, 2015 expire on September 30, 2015. No options to purchase shares of common stock for the three and nine months ended June 30, 2015 and 2014 were excluded from the computation of diluted earnings per share because none of the stock options were anti-dilutive. During the nine months ended June 30, 2015, the Company received proceeds of $356 related to the exercise of stock options. During this same period, the Company recorded a tax benefit of $55 and optionees realized an aggregate pre-tax gain of $141 from these stock option exercises. During the nine months ended June 30, 2014, the Company received proceeds of $115 related to the exercise of stock options. During this same period, the Company recorded a tax benefit of $51 and optionees realized an aggregate pre-tax gain of $133 from these stock option exercises. On January 28, 2013, stockholders approved the Nutraceutical International Corporation 2013 Long-Term Equity Incentive Plan (the "2013 Plan") and the reservation of 800,000 shares of the Company's common stock for issuance under the 2013 Plan. Equity awards available under the 2013 Plan include stock options, stock appreciation rights and stock awards. In conjunction with the Company's fiscal 2014 and fiscal 2013 incentive compensation (bonus) payments, 24,827 and 31,788 shares of the Company's common stock were issued, respectively. These non-cash stock awards were granted on December 11, 2014 and December 11, 2013 at an aggregate fair value of $504 and $775, respectively, with fair value being determined by the closing price of the Company's common stock on the grant date. These stock awards were registered, unrestricted and fully vested on the grant date. As of June 30, 2015, 743,385 shares of the Company's common stock were available for issuance under the 2013 Plan. |
SEGMENTS
SEGMENTS | 9 Months Ended |
Jun. 30, 2015 | |
SEGMENTS | |
SEGMENTS | 9. SEGMENTS Segment identification and selection is consistent with the management structure used by the Company's chief operating decision maker to evaluate performance and make decisions regarding resource allocation, as well as the materiality of financial results consistent with that structure. Based on the Company's management structure and method of internal reporting, the Company has one operating segment. The Company's chief operating decision maker does not review operating results on a disaggregated basis; rather, the chief operating decision maker reviews operating results on an aggregate basis. Net sales attributed to customers in the United States and foreign countries for the three and nine months ended June 30, 2015 and 2014 were as follows: Three months ended June 30, Nine months ended June 30, 2015 2014 2015 2014 United States $ $ $ $ Foreign countries $ $ $ $ Certain net sales attributed to customers in the United States are sold to customers who in turn may sell such products to customers in foreign countries, while certain net sales attributed to customers in foreign countries are sold to customers who in turn may sell such products to customers in the United States. The Company's net sales by product group for the three and nine months ended June 30, 2015 and 2014 were as follows: Three months ended June 30, Nine months ended June 30, 2015 2014 2015 2014 Branded nutritional supplements and other natural products $ $ $ $ Other(1) $ $ $ $ (1) Net sales for any other product or group of similar products are less than 10% of consolidated net sales. |
ACCOUNTS RECEIVABLE (Tables)
ACCOUNTS RECEIVABLE (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
ACCOUNTS RECEIVABLE | |
Schedule of accounts receivable, net of allowances for sales returns and doubtful accounts | June 30, 2015 September 30, 2014 Accounts receivable $ $ Less allowances ) ) $ $ |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
INVENTORIES | |
Schedule of inventories | June 30, 2015 September 30, 2014 Raw materials $ $ Work-in-process Finished goods $ $ |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
ACQUISITIONS. | |
Schedule of final allocation of the aggregate purchase price for the acquisitions to the aggregate assets acquired | Fiscal 2015 Acquisitions Fiscal 2014 Acquisitions Aggregate assets acquired: Current assets $ $ Goodwill Intangible assets $ $ |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
GOODWILL AND INTANGIBLE ASSETS | |
Schedule of changes in the carrying amount of goodwill | Goodwill Accumulated Impairment Net Balance as of October 1, 2014 $ $ ) $ Goodwill attributable to fiscal 2015 acquisition — Balance as of June 30, 2015 ) |
Schedule of carrying amounts of intangible assets | June 30, 2015 September 30, 2014 Gross Carrying Amount(1) Accumulated Amortization(1) Net Carrying Amount Gross Carrying Amount(1) Accumulated Amortization(1) Net Carrying Amount Weighted- Average Amortization Period (Years) Intangible assets subject to amortization: Trademarks/tradenames/patents $ $ ) $ $ $ ) $ Customer relationships/distribution rights/ non-compete agreements ) ) Developed software and technology ) — ) — ) ) Intangible assets not subject to amortization: Trademarks/tradenames/licenses — — $ $ ) $ $ $ ) $ (1) Amounts include the impact of foreign currency translation adjustments. |
Schedule of estimated amortization expense related to intangible assets subject to amortization | Year Ending September 30, Estimated Amortization Expense 2015(1) $ 2016 2017 2018 2019 Thereafter $ (1) Estimated amortization expense for the year ending September 30, 2015 includes only amortization to be recorded after June 30, 2015. |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
DEBT | |
Schedule of debt | June 30, 2015 September 30, 2014 Long-term debt—revolving credit facility $ $ |
STOCK OPTIONS AND OTHER EQUIT19
STOCK OPTIONS AND OTHER EQUITY AWARDS (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
STOCK OPTIONS AND OTHER EQUITY AWARDS | |
Schedule of stock option activity | Number of Options Weighted-Average Exercise Price Options outstanding and exercisable at September 30, 2014 $ Exercised ) Options outstanding and exercisable at June 30, 2015 |
SEGMENTS (Tables)
SEGMENTS (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
SEGMENTS | |
Schedule of net sales attributed to customers in the United States and foreign countries | Three months ended June 30, Nine months ended June 30, 2015 2014 2015 2014 United States $ $ $ $ Foreign countries $ $ $ $ |
Schedule of net sales by product group | Three months ended June 30, Nine months ended June 30, 2015 2014 2015 2014 Branded nutritional supplements and other natural products $ $ $ $ Other(1) $ $ $ $ (1) Net sales for any other product or group of similar products are less than 10% of consolidated net sales. |
ACCOUNTS RECEIVABLE (Details)
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
ACCOUNTS RECEIVABLE | ||
Accounts receivable | $ 15,259 | $ 16,352 |
Less allowances | (1,073) | (1,234) |
Accounts receivable, net | $ 14,186 | $ 15,118 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
INVENTORIES | ||
Raw materials | $ 22,485 | $ 20,559 |
Work-in-process | 8,668 | 6,909 |
Finished goods | 28,165 | 30,446 |
Inventories | $ 59,318 | $ 57,914 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) $ in Thousands | 9 Months Ended | ||
Jun. 30, 2015USD ($)item | Jun. 30, 2014USD ($)item | Sep. 30, 2014USD ($) | |
ACQUISITIONS. | |||
Number of business acquisitions | item | 2 | 6 | |
Aggregate assets acquired: | |||
Goodwill | $ 24,384 | $ 23,622 | |
Minimum | |||
Aggregate assets acquired: | |||
Amortization period | 2 years | ||
Maximum | |||
Aggregate assets acquired: | |||
Amortization period | 12 years | ||
Acquisitions | |||
ACQUISITIONS | |||
Aggregate purchase price in cash | $ 1,266 | $ 16,211 | |
Aggregate assets acquired: | |||
Current assets | 111 | 2,733 | |
Goodwill | 762 | 7,675 | |
Intangible assets | 393 | 5,803 | |
Aggregate purchase price | 1,266 | 16,211 | |
Acquired intangible assets expected to be deductible for tax purposes | 393 | 5,803 | |
Goodwill expected to be deductible for tax purposes | $ 762 | $ 7,675 | |
Expected period for deduction of acquired intangible assets for tax purposes | 15 years | ||
Expected period for deduction of acquired goodwill for tax purposes | 15 years |
GOODWILL AND INTANGIBLE ASSET24
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2014 | |
GOODWILL | ||
Goodwill | $ 64,778 | $ 64,016 |
Accumulated Impairment | (40,394) | (40,394) |
Goodwill attributable to fiscal 2015 acquisitions | 762 | |
Carrying amount of goodwill | 24,384 | 23,622 |
Intangible assets subject to amortization: | ||
Gross Carrying Amount | 23,139 | 22,707 |
Accumulated Amortization | (11,831) | (9,642) |
Net Carrying Amount | 11,308 | 13,065 |
Total intangible assets | ||
Gross Carrying Amount | 31,939 | 31,607 |
Net Carrying Amount | 20,108 | 21,965 |
Estimated future amortization expense related to intangible assets | ||
2,015 | 679 | |
2,016 | 2,227 | |
2,017 | 1,852 | |
2,018 | 1,662 | |
2,019 | 1,235 | |
Thereafter | 3,653 | |
Net Carrying Amount | 11,308 | 13,065 |
Trademarks/tradenames/licenses | ||
Intangible assets not subject to amortization: | ||
Carrying Amount | 8,800 | 8,900 |
Trademarks/tradenames/patents | ||
Intangible assets subject to amortization: | ||
Gross Carrying Amount | 5,530 | 5,418 |
Accumulated Amortization | (1,842) | (1,480) |
Net Carrying Amount | 3,688 | 3,938 |
Estimated future amortization expense related to intangible assets | ||
Net Carrying Amount | $ 3,688 | 3,938 |
Trademarks/tradenames/patents | Weighted average | ||
Intangible assets subject to amortization: | ||
Weighted-Average Amortization Period | 11 years | |
Customer relationships/distribution rights/ non-compete agreements | ||
Intangible assets subject to amortization: | ||
Gross Carrying Amount | $ 16,837 | 16,517 |
Accumulated Amortization | (9,217) | (7,390) |
Net Carrying Amount | 7,620 | 9,127 |
Estimated future amortization expense related to intangible assets | ||
Net Carrying Amount | $ 7,620 | 9,127 |
Customer relationships/distribution rights/ non-compete agreements | Weighted average | ||
Intangible assets subject to amortization: | ||
Weighted-Average Amortization Period | 7 years | |
Developed software and technology | ||
Intangible assets subject to amortization: | ||
Gross Carrying Amount | $ 772 | 772 |
Accumulated Amortization | $ (772) | $ (772) |
Developed software and technology | Weighted average | ||
Intangible assets subject to amortization: | ||
Weighted-Average Amortization Period | 5 years |
DEBT (Details)
DEBT (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jun. 30, 2015 | Nov. 04, 2014 | Sep. 30, 2014 | |
DEBT | |||
Long-term debt-revolving credit facility | $ 32,000 | $ 43,000 | |
Statutory Reserve Rate | |||
DEBT | |||
Reference rate | one-month Eurodollar Rate | ||
Margin over reference rate (as a percent) | 1.00% | ||
Restated Credit Agreement | |||
DEBT | |||
Available credit borrowings | $ 100,000 | ||
Deferred financing cost | 420 | ||
Outstanding revolving credit borrowings | $ 32,000 | ||
Weighted-average interest rate (as a percent) | 1.78% | ||
Quarterly fee on the unused balance (as a percent) | 0.25% | ||
Restated Credit Agreement | Federal Funds Rate | |||
DEBT | |||
Reference rate | the Federal Funds Rate | ||
Margin over reference rate (as a percent) | 0.50% | ||
Restated Credit Agreement | Eurodollar Rate | |||
DEBT | |||
Reference rate | Eurodollar Rate | ||
Interval for payment of accrued interest under option one | 1 month | ||
Interval for payment of accrued interest under option two | 2 months | ||
Interval for payment of accrued interest under option three | 3 months | ||
Restated Credit Agreement | Prime Lending Rate | |||
DEBT | |||
Reference rate | the Prime Lending Rate | ||
Credit Agreement, accordion feature | |||
DEBT | |||
Available credit borrowings | $ 130,000 |
SHARE PURCHASES (Details)
SHARE PURCHASES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share purchases | ||||
Number of shares of common stock held in treasury | 1,000 | 9,673 | 1,000 | 9,673 |
Additional number of shares authorized to be repurchased | 551,723 | 551,723 | ||
Common Stock | ||||
Share purchases | ||||
Shares of common stock purchased | 63,276 | 99,541 | 180,301 | 156,661 |
Aggregate price at which shares of common stock purchased (in dollars) | $ 1,266 | $ 2,368 | $ 3,618 | $ 3,798 |
STOCK OPTIONS AND OTHER EQUIT27
STOCK OPTIONS AND OTHER EQUITY AWARDS (Details) - 9 months ended Jun. 30, 2015 - $ / shares | Total |
Number of Options | |
Options outstanding and exercisable at the beginning of the period (in shares) | 32,500 |
Exercised (in shares) | (25,000) |
Options outstanding and exercisable at the end of the period (in shares) | 7,500 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |
Options outstanding and exercisable at the beginning of the period (in dollars per share) | $ 14.22 |
Exercised (in dollars per share) | 14.22 |
Options outstanding and exercisable at the ending of the period (in dollars per share) | $ 14.22 |
STOCK OPTIONS AND OTHER EQUIT28
STOCK OPTIONS AND OTHER EQUITY AWARDS (Details 2) - shares | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Sep. 30, 2014 | |
Stock options | ||
Antidilutive securities | ||
Options to purchase shares of common stock excluded from the computation of diluted earnings per share (in shares) | 0 | 0 |
STOCK OPTIONS AND OTHER EQUIT29
STOCK OPTIONS AND OTHER EQUITY AWARDS (Details 3) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
STOCK OPTIONS AND OTHER EQUITY AWARDS | ||
Proceeds from exercise of stock options | $ 356 | $ 115 |
Tax benefit from stock option exercises | 55 | 51 |
Pre-tax gain from exercise of stock options | $ 141 | $ 133 |
STOCK OPTIONS AND OTHER EQUIT30
STOCK OPTIONS AND OTHER EQUITY AWARDS (Details 4) - 2013 Plan - USD ($) $ in Thousands | Dec. 11, 2014 | Dec. 11, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Jun. 30, 2015 | Jan. 28, 2013 |
STOCK OPTIONS AND OTHER EQUITY AWARDS | ||||||
Shares of common stock reserved for issuance | 800,000 | |||||
Equity compensation payments (in shares) | 24,827 | 31,788 | ||||
Equity compensation payments | $ 504 | $ 775 | ||||
Shares of common stock available for issuance | 743,385 |
SEGMENTS (Details)
SEGMENTS (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)segment | Jun. 30, 2014USD ($) | |
SEGMENTS | ||||
Number of operating segments | segment | 1 | |||
SEGMENTS | ||||
Net sales | $ 54,382 | $ 55,625 | $ 162,830 | $ 162,034 |
Branded nutritional supplements and other natural products | ||||
SEGMENTS | ||||
Net sales | 49,258 | 50,161 | 147,018 | 146,636 |
Other | ||||
SEGMENTS | ||||
Net sales | 5,124 | 5,464 | 15,812 | 15,398 |
United States | ||||
SEGMENTS | ||||
Net sales | 47,671 | 47,804 | 143,203 | 140,089 |
Foreign countries | ||||
SEGMENTS | ||||
Net sales | $ 6,711 | $ 7,821 | $ 19,627 | $ 21,945 |