CARLSBAD, Calif., Sept. 19, 2016 /PRNewswire/ -- Natural
Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading
formulator, manufacturer and marketer of customized nutritional
supplements, today announced net income of $9.5 million, or $1.44 per diluted share, on net sales of
$114.2 million for the fiscal year
ended June 30, 2016. Fiscal
2016 results were favorably impacted by the sale of our domestic
corporate headquarters in San Marcos,
CA during the third quarter that resulted in a one-time gain
on the sale, net of tax, equal to $1.0
million, or $0.15 per diluted
share. Excluding this transaction, our net income from
recurring business during fiscal 2016 was $8.5 million, or $1.29 per diluted share.
Fiscal 2016 net sales from private-label contract manufacturing
activities increased $22.8 million,
or 32.7%, from the prior year, due primarily to the sale of higher
volumes of existing products to existing customers and new product
sales to new and existing customers, partially offset by
unfavorable foreign exchange rates as compared to the prior year.
CarnoSyn® beta-alanine royalty, licensing and raw material sales
revenue increased 138.3% to $21.8
million during fiscal 2016 as compared to $9.1 million for fiscal 2015. The increase
in CarnoSyn® beta-alanine revenue in fiscal 2016 was primarily due
to an increase in raw material sales as a result of taking over the
direct sale and distribution of CarnoSyn® beta-alanine effective
April 1, 2015. Our branded
products sales declined to zero in fiscal 2016 as compared to
$698,000 for fiscal 2015 due to the
discontinuation of the product line effective December 31, 2014.
Net sales during the three months ended June 30, 2016 increased 58.1% to $35.7 million from $22.6
million recorded in the same period last year. Private
label contract manufacturing sales increased $11.9 million, or 65.5%, from the same quarter
last year, due primarily to the sale of higher volumes of existing
products to existing customers and new product sales to new and
existing customers, partially offset by unfavorable foreign
exchange rates as compared to the same period last year. CarnoSyn®
beta-alanine royalty, licensing and raw material sales revenue
increased 27.6% to $5.7 million
during the fourth quarter of fiscal 2016 as compared to
$4.4 million for the fourth quarter
of fiscal 2015. The increase in CarnoSyn® beta-alanine
revenue was primarily due to an increase in raw material sales to
new and existing customers.
Net income during the quarter ended June
30, 2016 was $3.4 million, or
$0.52 per diluted share, compared to
net income of $1.0 million, or
$0.15 per diluted share, in fiscal
2015. This increase was primarily attributable to improved
operational throughput and lower per unit manufacturing costs
partially offset by lower average Euro exchange rates related to
our private label contract manufacturing segment, and increased
CarnoSyn® beta-alanine revenue.
As of June 30, 2016, NAI had cash
of $19.7 million and working capital
of $36.7 million compared to
$18.6 million and $34.5 million, respectively, as of June 30, 2015. As of June 30, 2016, we had $10.5 million available under our line of credit
agreements.
Mark A. Le Doux, Chairman and
Chief Executive Officer stated, "Fiscal year 2016 will go down as a
landmark year for the company in sales and earnings per share.
On a quarterly basis, the fourth quarter also generated
considerable growth in EPS. This result was achieved through
the hard work of many team members of the company. We remain
debt-free with a strong balance sheet and continue to seek ways of
expanding our presence in the international marketplace and leading
by example.
"We recently completed an expansion of our state of the art
facilities in Lugano, Switzerland,
increasing our capacity to produce powdered supplement products and
solid dose forms. We continue to invest in essential
research, and we are undertaking expansion of our solid dose
coating systems in California and
have also recently increased our encapsulation capacity there.
"In August we were audited once again by the Therapeutic Goods
Administration of Australia, and
the recommendation from the TGA is for another three-year extension
or 20 consecutive years of TGA certification. As signators to
the Pharmaceutical Inspection Co-operation Scheme, this
certification opens the door for us to fast-track registration of
products in over 48 countries around the world."
NAI, headquartered in Carlsbad,
California, is a leading formulator, manufacturer and
marketer of nutritional supplements and provides strategic
partnering services to its customers. Our comprehensive partnership
approach offers a wide range of innovative nutritional products and
services to our clients including: scientific research, clinical
studies, proprietary ingredients, customer-specific nutritional
product formulation, product testing and evaluation, marketing
management and support, packaging and delivery system design,
regulatory review and international product registration
assistance. For more information about NAI, please see our website
at http://www.nai-online.com.
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934
that are not historical facts and information. These statements
represent our intentions, expectations and beliefs concerning
future events, including, among other things, our future revenue
profits and financial condition, and our ability to develop,
maintain or increase sales to new and existing customers. We wish
to caution readers these statements involve risks and uncertainties
that could cause actual results and outcomes for future periods to
differ materially from any forward-looking statement or views
expressed herein. NAI's financial performance and the
forward-looking statements contained herein are further qualified
by other risks including those set forth from time to time in the
documents filed by us with the Securities and Exchange Commission,
including our most recent Annual Report on Form 10-K.
CONTACT – Michael Fortin, Chief
Financial Officer, Natural Alternatives International, Inc., at
760-736-7700 or investor@nai-online.com.
Web site: http://www.nai-online.com
NATURAL
ALTERNATIVES INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(In thousands, except
per share data)
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Twelve Months
Ended
|
|
|
|
June
30,
|
|
|
|
June 30,
|
|
|
|
2016
|
|
|
|
2015
|
|
|
|
2016
|
|
|
|
2015
|
|
|
NET
SALES
|
$35,699
|
|
100.0%
|
|
$22,582
|
|
100.0%
|
|
$114,201
|
|
100.0%
|
|
$79,508
|
|
100.0%
|
Cost of goods
sold
|
27,300
|
|
76.5%
|
|
18,689
|
|
82.8%
|
|
88,943
|
|
77.9%
|
|
65,169
|
|
82.0%
|
Gross
profit
|
8,399
|
|
23.5%
|
|
3,893
|
|
17.2%
|
|
25,258
|
|
22.1%
|
|
14,339
|
|
18.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
& administrative expenses
|
3,709
|
|
10.4%
|
|
2,723
|
|
12.1%
|
|
13,000
|
|
11.4%
|
|
10,180
|
|
12.8%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
4,690
|
|
13.1%
|
|
1,170
|
|
5.2%
|
|
12,258
|
|
10.7%
|
|
4,159
|
|
5.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
-127
|
|
-0.4%
|
|
6
|
|
0.0%
|
|
1,314
|
|
1.2%
|
|
148
|
|
0.2%
|
INCOME BEFORE
TAXES
|
4,563
|
|
12.8%
|
|
1,176
|
|
5.2%
|
|
13,572
|
|
11.9%
|
|
4,307
|
|
5.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
1,121
|
|
|
|
186
|
|
|
|
4,026
|
|
|
|
961
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$
3,442
|
|
|
|
$
990
|
|
|
|
$
9,546
|
|
|
|
$
3,346
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER
COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
$0.52
|
|
|
|
$0.15
|
|
|
|
$1.46
|
|
|
|
$0.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
$0.52
|
|
|
|
$0.15
|
|
|
|
$1.44
|
|
|
|
$0.49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
6,553
|
|
|
|
6,621
|
|
|
|
6,524
|
|
|
|
6,753
|
|
|
Diluted
|
6,676
|
|
|
|
6,729
|
|
|
|
6,641
|
|
|
|
6,806
|
|
|
NATURAL
ALTERNATIVES INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
2016
|
|
2015
|
|
|
|
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$19,747
|
|
$18,551
|
Accounts receivable,
net
|
13,217
|
|
9,895
|
Inventories,
net
|
20,768
|
|
12,564
|
Deferred income
taxes
|
-
|
|
367
|
Other current
assets
|
2,150
|
|
2,223
|
Total current assets
|
55,882
|
|
43,600
|
Property and
equipment, net
|
15,167
|
|
7,633
|
Deferred income
taxes
|
2,227
|
|
1,663
|
Other noncurrent
assets, net
|
899
|
|
920
|
Total Assets
|
$74,175
|
|
$53,816
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Accounts payable and
accrued liabilities
|
$19,963
|
|
$9,553
|
Deferred
rent
|
486
|
|
403
|
Total Liabilities
|
20,449
|
|
9,956
|
Stockholders'
Equity
|
53,726
|
|
43,860
|
Total Liabilities and Stockholders' Equity
|
$74,175
|
|
$53,816
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/natural-alternatives-international-inc-announces-fiscal-2016-q4-results-300329675.html
SOURCE Natural Alternatives International, Inc.