CARLSBAD, Calif., Sept. 18,
2017 /PRNewswire/ -- Natural Alternatives
International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator,
manufacturer and marketer of customized nutritional supplements,
today announced net income of $7.2
million, or $1.09 per diluted
share, on net sales of $121.9 million
for the fiscal year ended June 30,
2017.
During fiscal 2017, our net sales were 7% higher than in fiscal
2016. Fiscal 2017 net sales from private-label contract
manufacturing activities increased $2.6
million, or 3%, 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 reductions in orders related to certain domestic and
Asian customers. CarnoSyn® beta-alanine royalty, licensing and raw
material sales revenue increased 24% to $26.9 million during fiscal 2017 as compared to
$21.8 million for fiscal
2016.
Net income for fiscal 2017 was $7.2
million, or $1.09 per diluted
share, compared to net income of $9.5
million, or $1.44 per diluted
share, in fiscal 2016. The comparable results in fiscal 2016
were favorably impacted by the sale of our domestic corporate
headquarters in San Marcos, CA,
resulting in a one-time gain on the sale, net of tax, equal to
$1.0M, 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. The
decrease in net income was primarily attributable to increased
litigation expenses incurred in connection with efforts to enforce
compliance with our existing patents, fees and expenses related to
new patent applications and to protect our trade name in the
marketplace against parties who are using it without our consent,
partially offset by favorable sales and foreign exchange
activity.
Net sales during the three months ended June 30, 2017 decreased 9.8% to $32.2 million from $35.7
million recorded in the same period last year.
Private-label contract manufacturing sales decreased $4.8 million, or 16.0%, from the same quarter
last year. Beginning in the third quarter of fiscal 2017 our
contract manufacturing sales were unfavorably impacted due to
reductions in orders related to the Asian and European markets. Our
international sales improved during our fourth quarter of fiscal
2017 and we expect this sales trend to continue during fiscal 2018,
which includes our extended partnership with The Juice Plus+
Company that is expected to begin favorably impacting sales in the
second quarter of fiscal 2018. CarnoSyn® beta-alanine
royalty, licensing and raw material sales revenue increased 22.8%
to $6.9 million during the fourth
quarter of fiscal 2017 as compared to $5.7
million for the fourth quarter of fiscal 2016. The
increase in CarnoSyn® beta-alanine revenue was primarily due to
growth in our customer base and increased material shipments.
Net income during the quarter ended June
30, 2017 was $1.5 million, or
$0.23 per diluted share, compared to
net income of $3.4 million, or
$0.52 per diluted share, in fiscal
2016. This decrease was primarily attributable to decreased
sales and increased litigation expenses incurred in connection with
efforts to enforce compliance with our existing patents, fees and
expenses related to new patent applications and to protect our
trade name in the marketplace against parties who are using it
without our consent.
As of June 30, 2017, NAI had cash
of $27.8 million and working capital
of $41.4 million compared to
$19.7 million and $36.7 million, respectively, as of June 30, 2016. As of June 30, 2017, we had $10.0 million available under our line of credit
agreements.
Mark A. LeDoux, Chairman and
Chief Executive Officer stated, "I am delighted with the
performance of our company this past year, in spite of several
challenging circumstances. As the world continues to reset
regulatory guidelines, and markets seek various levels of
protection or expansion, our industry has been adversely impacted
in several markets in Asia. During this past fiscal year, we
saw regulatory changes in places like China cause significant disruption and
diminution of product sales to some of our Australian based
customers and, as a consequence, sales expectations were
substantially reduced in light of the uncertainty of the regulatory
environment.
"We believe that our next fiscal year should see a resurgence of
growth in our contract manufacturing services from a variety of
markets based on our expanded capabilities in both the USA and Switzerland."
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,
|
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
2017
|
|
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
SALES
|
$
32,185
|
|
100.0%
|
|
$
35,699
|
|
100.0%
|
|
$121,946
|
|
100.0%
|
|
$
114,201
|
|
100.0%
|
|
Cost of goods
sold
|
25,263
|
|
78.5%
|
|
27,300
|
|
76.5%
|
|
95,742
|
|
78.5%
|
|
88,943
|
|
77.9%
|
|
Gross
profit
|
6,922
|
|
21.5%
|
|
8,399
|
|
23.5%
|
|
26,204
|
|
21.5%
|
|
25,258
|
|
22.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
& administrative expenses
|
4,862
|
|
15.1%
|
|
3,709
|
|
10.4%
|
|
16,502
|
|
13.5%
|
|
13,000
|
|
11.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
2,060
|
|
6.4%
|
|
4,690
|
|
13.1%
|
|
9,702
|
|
8.0%
|
|
12,258
|
|
10.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income,
net
|
-85
|
|
-0.3%
|
|
-127
|
|
-0.4%
|
|
409
|
|
0.3%
|
|
1,314
|
|
1.2%
|
|
INCOME BEFORE
TAXES
|
1,975
|
|
6.1%
|
|
4,563
|
|
12.8%
|
|
10,111
|
|
8.3%
|
|
13,572
|
|
11.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
441
|
|
|
|
1,121
|
|
|
|
2,876
|
|
|
|
4,026
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$
1,534
|
|
|
|
$
3,442
|
|
|
|
$
7,235
|
|
|
|
$
9,546
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER
COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
$0.23
|
|
|
|
$0.52
|
|
|
|
$1.10
|
|
|
|
$1.46
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
$0.23
|
|
|
|
$0.52
|
|
|
|
$1.09
|
|
|
|
$1.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
6,599
|
|
|
|
6,553
|
|
|
|
6,577
|
|
|
|
6,524
|
|
|
|
Diluted
|
6,678
|
|
|
|
6,676
|
|
|
|
6,656
|
|
|
|
6,641
|
|
|
|
NATURAL
ALTERNATIVES INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
2017
|
|
2016
|
|
|
|
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$27,843
|
|
$19,747
|
Accounts receivable,
net
|
8,410
|
|
13,217
|
Inventories,
net
|
13,729
|
|
20,768
|
Deferred income
taxes
|
-
|
|
-
|
Other current
assets
|
1,717
|
|
2,150
|
Total current assets
|
51,699
|
|
55,882
|
Property and
equipment, net
|
18,136
|
|
15,167
|
Deferred income
taxes
|
2,002
|
|
2,227
|
Other noncurrent
assets, net
|
774
|
|
899
|
Total Assets
|
$72,611
|
|
$74,175
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Accounts payable and
accrued liabilities
|
10,926
|
|
$19,963
|
Deferred
rent
|
537
|
|
486
|
Total Liabilities
|
11,463
|
|
20,449
|
Stockholders'
Equity
|
61,148
|
|
53,726
|
Total Liabilities and Stockholders' Equity
|
$72,611
|
|
$74,175
|
View original
content:http://www.prnewswire.com/news-releases/natural-alternatives-international-inc-announces-fiscal-2017-and-q4-results-300520774.html
SOURCE Natural Alternatives International, Inc.