CARLSBAD, Calif., Nov. 9, 2022
/PRNewswire/ -- Natural Alternatives International, Inc. ("NAI")
(Nasdaq: NAII), a leading formulator, manufacturer, and marketer of
customized nutritional supplements, today announced net income of
$1.1 million, or $0.18 per diluted share, on net sales of
$43.1 million for the first quarter
of fiscal year 2023 compared to net income of $3.3 million, or $0.51 per diluted share, in the first quarter of
the prior fiscal year.
Net sales during the three months ended September 30, 2022 increased $4.8 million, or 12.5%, to $43.1 million as compared to $38.3 million recorded in the comparable prior
year period. During the same period, private-label contract
manufacturing sales increased $8.2
million, a 24.4% increase from the comparable quarter last
year. Private-label contract manufacturing sales increased
primarily due to higher sales to our two largest customers,
partially offset by decreased sales to other smaller customers and
lower average exchange rates applied to sales denominated in Euro
as compared to the prior year period. Our foreign exchange rates as
applied to sales denominated in Euro decreased to a weighted
average of 1.12 EUR/USD in the first
three months of fiscal 2023 compared to a weighted average of
1.18 EUR/USD during the first three
months of fiscal 2022. Sales backlog for the quarter ended
September 30, 2022, totaled
approximately $8.0 million primarily
related to supply chain and logistical constraints.
CarnoSyn® beta-alanine royalty, licensing and raw material sales
revenue decreased 71.5% to $1.4
million during the first quarter of fiscal year 2023, as
compared to $4.7 million for the
first quarter of fiscal year 2022. The decrease in patent and
trademark licensing revenue during the first quarter of fiscal 2022
was primarily due to a decrease in orders from existing customers
as a result of market and inflationary factors along with a general
slowdown in the Sports Nutrition sales channel. Included in
the market factors is the fact that the first three months of
fiscal 2022 benefited from a ramp up of Sports Nutrition sales
activity due to easing COVID restrictions on athletic activities
with no corresponding activity in the first three months of fiscal
2023.
Based on our current sales order volumes and forecasts we have
received from our customers, we now anticipate our fiscal 2023
consolidated net sales will be slightly up as compared to fiscal
2022. While sales are expected to increase during fiscal 2023 when
compared to fiscal 2022, we anticipate operating income will be
negatively impacted by changes in sales mix, unfavorable foreign
exchange rates, and inflationary factors including increased
operational costs impacted by increased labor, raw material,
freight and supply chain costs. We are working with both
suppliers and customers to attempt to mitigate the expected
negative impact on our fiscal 2023 financial results. There
can be no assurances our expectations will result in the currently
anticipated increase in net sales and expected operating income
levels.
As of September 30, 2022, we had
cash of $12.3 million and working
capital of $47.6 million compared to
$21.8 million and $53.5 million respectively, as of June 30, 2022. As of September 30, 2022, we owed $3.4 million and had $16.6
million available under our line of credit agreement.
Mark A. Le Doux, Chairman and
Chief Executive Officer of NAI stated, "Despite persistent economic
headwinds, we are encouraged by the growth in our contract
manufacturing sales. However, the continued impact of inflation has
and will continue to have a negative impact on our net financial
results. We are actively evaluating a variety of cost savings
programs in order to preserve margins as much as possible, but
these challenges are likely to persist into the near future."
"Much like many other industries, we believe the dietary
supplement industry has entered a period of constrained growth due
to the effect inflation is having on consumer behaviors. This
inflationary impact appears to have affected the Sports Nutrition
Industry most significantly, but there are indications that other
areas of the dietary supplement industry are experiencing the same
economic pressures. We believe we have a strong core business and
this foundation coupled with the strength of our balance sheet will
help us weather this economic storm."
"Construction on our new powder manufacturing facility in
Carlsbad, California continues to
progress, and we still anticipate this state-of-the art powder
plant will be operational by the middle of our fiscal year
2023."
"We remain committed to delivering value for our shareholders as
we repurchased 46,795 shares of our common stock in the first
quarter of fiscal 2023 and intend to continue to opportunistically
buy back shares in the future. While we see macro challenges across
the economy ahead, our team is working hard across all departments
to navigate these obstacles, deliver superior service for our
customers and drive sales growth and profitability."
An updated investor presentation will be posted to the investor
relations page on our website later today
(https://www.nai-online.com/our-company/investors/).
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
ability to develop, maintain or increase sales to new and existing
customers, our ability to attract and retain sufficient labor,
COVID-19 and related impacts on the availability of raw materials,
our future revenue profits and financial condition, as well as
future economic conditions and the impact of such conditions on our
business. 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
|
|
|
|
September
30,
|
|
|
|
2022
|
|
|
|
2021
|
|
|
NET
SALES
|
$43,127
|
|
100.0 %
|
|
$38,340
|
|
100.0 %
|
Cost of goods
sold
|
37,756
|
|
87.5 %
|
|
30,059
|
|
78.4 %
|
Gross profit
|
5,371
|
|
12.5 %
|
|
8,281
|
|
21.6 %
|
|
|
|
|
|
|
|
|
Selling, general &
administrative expenses
|
3,829
|
|
8.9 %
|
|
4,053
|
|
10.6 %
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
1,542
|
|
3.6 %
|
|
4,228
|
|
11.0 %
|
|
|
|
|
|
|
|
|
Other loss,
net
|
(224)
|
|
-0.5 %
|
|
(26)
|
|
-0.1 %
|
INCOME BEFORE
TAXES
|
1,318
|
|
3.1 %
|
|
4,202
|
|
11.0 %
|
|
|
|
|
|
|
|
|
Income tax
expense
|
265
|
|
|
|
946
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$
1,053
|
|
|
|
$
3,256
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER
COMMON SHARE:
|
|
|
|
|
|
|
|
Basic:
|
$0.18
|
|
|
|
$0.52
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
$0.18
|
|
|
|
$0.51
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
Basic
|
5,920
|
|
|
|
6,288
|
|
|
Diluted
|
5,943
|
|
|
|
6,351
|
|
|
NATURAL ALTERNATIVES
INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
2022
|
|
2022
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$12,341
|
|
$21,833
|
Accounts receivable,
net
|
14,822
|
|
17,422
|
Inventories,
net
|
39,990
|
|
32,475
|
Other current
assets
|
7,251
|
|
5,016
|
Total current assets
|
74,404
|
|
76,746
|
Property and equipment,
net
|
51,384
|
|
44,573
|
Operating lease
right-of-use assets
|
21,136
|
|
21,701
|
Other noncurrent
assets, net
|
2,644
|
|
2,983
|
Total Assets
|
$149,568
|
|
$146,003
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Accounts payable and
accrued liabilities
|
25,441
|
|
25,641
|
Line of
Credit
|
3,400
|
|
-
|
Mortgage note
payable
|
9,727
|
|
9,795
|
Long-term liability -
operating leases
|
21,144
|
|
22,047
|
Total Liabilities
|
59,712
|
|
57,483
|
Stockholders'
Equity
|
89,856
|
|
88,520
|
Total Liabilities and Stockholders' Equity
|
$149,568
|
|
$146,003
|
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content:https://www.prnewswire.com/news-releases/natural-alternatives-international-inc-announces-2023-q1-results-301673666.html
SOURCE Natural Alternatives International, Inc.