CARLSBAD, Calif., Nov. 13, 2018 /PRNewswire/ -- Natural
Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading
formulator, manufacturer and marketer of customized nutritional
supplements, today announced net income of $2.6 million, or $0.37 per diluted share, on net sales of
$36.5 million for the quarter ended
September 30, 2018
Net sales during the three months ended September 30, 2018 increased $8.5 million, or 30.1%, from $28.1 million recorded in the comparable prior
year period. For the quarter ended September 30, 2018, private label contract
manufacturing sales increased $8.9
million, or 39.9%, from the comparable quarter last year.
First quarter contract manufacturing sales increased primarily due
to the sale of new products to existing customers and higher
volumes of current products to existing customers. The
increase in sales included shipment of new products and increased
sales of existing products to our largest customer under our
previously announced expanded relationship.
CarnoSyn® beta-alanine royalty, licensing and raw
material sales revenue decreased 6.9% to $5.4 million during the first quarter of fiscal
2019, as compared to $5.9 million for
the first quarter of fiscal 2018. The decrease in
CarnoSyn® revenue was primarily due to lower average
material sales prices.
Net income for our first quarter of fiscal 2019 was $2.6 million, or $0.37 per diluted share, compared to net income
of $1.4 million, or $0.21 per diluted share, in the first quarter of
fiscal 2018. The increase in net income is primarily due to
increased private label contract manufacturing sales, favorable
interest income associated with our foreign currency hedging
program, and a lower effective tax rate associated with the Tax
Cuts and Jobs Act enacted in December 2017.
As of September 30, 2018, NAI had
cash of $27.6 million and working
capital of $54.5 million compared to
$23.6 million and $50.9 million, respectively, as of June 30, 2018. As of September 30, 2018, we had $10.0 million available under our line of credit
agreement.
Mark A. Le Doux, Chairman and
Chief Executive Officer stated, "As anticipated, we have
experienced growth in existing markets and are beginning to see new
revenue sources from new customers to complement our core
customers. More and more companies recognize the true
value-add that NAI brings as a manufacturing partner, not only in
production of dietary supplements, but in applying the discipline
of sound research in formulating, applying rigorous standards in
product and pilot development, and using our many years of
experience in sourcing the finest ingredients to deploy for our
customers, assuring quality and consistency."
"We have added seasoned personnel with great reputations into
our business at a variety of levels, and are excited at the
prospects for entering new channels of commerce with our robust
intellectual property estate surrounding sustained release
CarnoSyn® beta-alanine. We continue to provide
leadership for the natural products industry by continuing to
advance the efforts of the Supplement Safety Compliance Initiative,
which seeks to solidify consumer trust in our products and which is
led by major retailers with huge footprints in this industry, while
also serving the members of the Natural Products Association in
Washington D.C. at the Board of
Director level. With the latest election results, there will
be much opportunity for discussion as we seek to educate the newest
members of Congress on the virtues of preventive approaches to
disease development, and the significant benefit to the nation in
terms of reduction of cost to the health care system and the
taxpayer."
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, our ability to maintain
our patents, generate revenues from the commercialization of our
patents and trademarks, secure compliance with our intellectual
property rights, and develop, maintain or increase sales to new and
existing customers, as well as future economic conditions and the
impact of such conditions on our business. We wish to caution
readers that 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,
|
|
|
|
2018
|
|
|
|
2017
|
|
|
NET
SALES
|
36,532
|
|
100.0%
|
|
28,074
|
|
100.0%
|
Cost of goods
sold
|
29,369
|
|
80.4%
|
|
21,704
|
|
77.3%
|
Gross
profit
|
7,163
|
|
19.6%
|
|
6,370
|
|
22.7%
|
|
|
|
|
|
|
|
|
Selling, general
& administrative expenses
|
4,439
|
|
12.2%
|
|
4,487
|
|
16.0%
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
2,724
|
|
7.5%
|
|
1,883
|
|
6.7%
|
|
|
|
|
|
|
|
|
Other income,
net
|
497
|
|
1.4%
|
|
108
|
|
0.4%
|
INCOME BEFORE
TAXES
|
3,221
|
|
8.8%
|
|
1,991
|
|
7.1%
|
|
|
|
|
|
|
|
|
Income tax
expense
|
662
|
|
|
|
557
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$2,559
|
|
|
|
$1,434
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER
COMMON SHARE:
|
|
|
|
|
|
|
|
Basic:
|
$0.38
|
|
|
|
$0.22
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
$0.37
|
|
|
|
$0.21
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
Basic
|
6,765
|
|
|
|
6,607
|
|
|
Diluted
|
6,965
|
|
|
|
6,831
|
|
|
NATURAL
ALTERNATIVES INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
September
30,
|
|
June
30,
|
|
2018
|
|
2018
|
|
|
|
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$27,613
|
|
$23,613
|
Accounts receivable,
net
|
12,733
|
|
14,621
|
Inventories,
net
|
24,972
|
|
23,567
|
Other current
assets
|
4,587
|
|
3,382
|
Total current assets
|
69,905
|
|
65,183
|
Property and
equipment, net
|
19,277
|
|
19,290
|
Other noncurrent
assets, net
|
920
|
|
734
|
Total Assets
|
$90,102
|
|
$85,207
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Accounts payable and
accrued liabilities
|
17,671
|
|
16,403
|
Deferred
rent
|
555
|
|
556
|
Total Liabilities
|
18,226
|
|
16,959
|
Stockholders'
Equity
|
71,876
|
|
68,248
|
Total Liabilities and Stockholders' Equity
|
$90,102
|
|
$85,207
|
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content:http://www.prnewswire.com/news-releases/natural-alternatives-international-inc-announces-2019-q1-results-300749588.html
SOURCE Natural Alternatives International, Inc.