CARLSBAD, Calif., Nov. 9, 2021 /PRNewswire/ -- -Natural
Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading
formulator, manufacturer, and marketer of customized nutritional
supplements, today announced net income of $3.3 million, or $0.51 per diluted share, on net sales of
$38.3 million for the first quarter
of fiscal year 2022 compared to net income of $2.3 million, or $0.35 per diluted share, in the first quarter of
the prior fiscal year.
Net sales during the three months ended September 30, 2021 decreased $1.4 million, or 3.5%, to $38.3 million as compared to $39.7 million recorded in the comparable prior
year period. During the same period, private-label contract
manufacturing sales decreased to $33.6
million, a 9.3% decrease from the comparable quarter last
year. Private-label contract manufacturing sales decreased
primarily due to a 45% decrease in sales to our largest customer
primarily associated with their European markets. This sales
decline was largely offset by increased sales to new and
existing customers including significant sales from a new customer
operating in the direct-to-consumer marketplace. Sales backlog for
the quarter ended September 30, 2021
exceeded $8.0 million and was
primarily related to supply chain and logistical constraints.
CarnoSyn® beta-alanine royalty, licensing and raw material sales
revenue increased 77.1% to $4.7
million during the first quarter of fiscal year 2022, as
compared to $2.7 million for the
first quarter of fiscal year 2021. The increase in patent and
trademark licensing revenue during the first quarter of fiscal 2022
was primarily due to increased shipments to existing customers
related to athletic activities and gyms reopening in accordance
with easing COVID-19 restrictions across the USA as compared to significant restrictions in
athletic activities in the first quarter of fiscal 2021 combined
with sales to new customers and higher average sales prices.
Based on our current sales order volumes, backlog and forecasts
we have received from our customers; we now anticipate our fiscal
year 2022 consolidated net sales will increase between 7.0% and
10.0% as compared to fiscal year 2021. We also now anticipate we
will generate operating income between 10.0% and 13.0% of net sales
for our fiscal year ending June 30,
2022. Sales and profitability during the first half of
fiscal 2022 are anticipated to decline when compared to the same
period of fiscal 2021. Our expectations for the first half of
fiscal 2022 are being driven by continuing supply chain, labor, and
logistical constraints, all of which are expected to result in a
backlog of existing orders that may not be fully cleared until the
second half of fiscal 2022. We currently anticipate these supply
chain and manufacturing challenges will mostly resolve themselves
during the second half of fiscal 2022. As a result, we expect sales
and profitability in the second half of fiscal 2022 to exceed the
comparable period in fiscal 2021, with the overall fiscal 2022
results reflecting an increase in both sales and profitability on a
full year basis.
As of September 30, 2021, we had
cash of $20.0 million and working
capital of $54.6 million compared to
$32.1 million and $58.3 million respectively, as of June 30, 2021. As of September 30, 2021, we had $20.0 million available under our line of credit
agreement.
Mark A. Le Doux, Chairman and
Chief Executive Officer of NAI stated, "Despite a decline in sales
from our largest customer, we have been able to make significant
progress in growing our business with other customers in a variety
of channels, including the recent acquisition of a new direct to
consumer based customer we expect will help drive significant
future growth for our company. We believe the dietary
supplement industry is in a period of meaningful growth, and we
find ourselves in the enviable position where we are able to
capitalize on new opportunities leveraging our reputation of
quality and integrity along with our available equipment capacity
supported by the strength of our balance sheet."
"We continue to navigate challenges related to supply chain and
staffing that have resulted in larger than normal backlog, but we
believe we will be able to overcome these challenges by the end of
this calendar year. Our investments related to securing adequate
supplies of inventory and labor are expected to pay dividends in
the second half of our current fiscal year."
"We believe our favorable profitability as a percentage of sales
is a trend that will be fully realized on a full year basis
supported by improved customer mix, capacity utilization, favorable
currency translation on foreign sales, and improved contribution
from our CarnoSyn® business."
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,
|
|
|
|
|
2021
|
|
|
|
2020
|
|
|
|
NET
SALES
|
$
38,340
|
|
100.0%
|
|
$
39,726
|
|
100.0%
|
|
Cost of goods
sold
|
30,059
|
|
78.4%
|
|
33,721
|
|
84.9%
|
|
Gross
profit
|
8,281
|
|
21.6%
|
|
6,005
|
|
15.1%
|
|
|
|
|
|
|
|
|
|
|
Selling, general
& administrative expenses
|
4,053
|
|
10.6%
|
|
3,920
|
|
9.9%
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
4,228
|
|
11.0%
|
|
2,085
|
|
5.2%
|
|
|
|
|
|
|
|
|
|
|
Other expense,
net
|
(26)
|
|
-0.1%
|
|
(321)
|
|
-0.8%
|
|
INCOME BEFORE
TAXES
|
4,202
|
|
11.0%
|
|
1,764
|
|
4.4%
|
|
|
|
|
|
|
|
|
|
|
Income tax expense
(benefit)
|
946
|
|
|
|
(494)
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$
3,256
|
|
|
|
$
2,258
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER
COMMON SHARE:
|
|
|
|
|
|
|
|
|
Basic:
|
$0.52
|
|
|
|
$0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
$0.51
|
|
|
|
$0.35
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
Basic
|
6,288
|
|
|
|
6,418
|
|
|
|
Diluted
|
6,351
|
|
|
|
6,471
|
|
|
|
|
|
|
|
|
|
|
|
|
NATURAL
ALTERNATIVES INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
(unaudited)
|
|
|
|
September
30,
|
|
June
30,
|
|
2021
|
|
2021
|
|
|
|
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$20,028
|
|
$32,133
|
Accounts receivable,
net
|
20,245
|
|
17,946
|
Inventories,
net
|
31,709
|
|
27,006
|
Other current
assets
|
3,254
|
|
3,263
|
Total current assets
|
75,236
|
|
80,348
|
Property and
equipment, net
|
39,504
|
|
22,271
|
Operating lease
right-of-use assets
|
15,212
|
|
15,877
|
Other noncurrent
assets, net
|
2,211
|
|
1,785
|
Total Assets
|
$132,163
|
|
$120,281
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Accounts payable and
accrued liabilities
|
21,921
|
|
23,717
|
Line of
credit
|
10,000
|
|
-
|
Long-term liability -
operating leases
|
15,737
|
|
16,481
|
Total Liabilities
|
47,658
|
|
40,198
|
Stockholders'
Equity
|
84,505
|
|
80,083
|
Total Liabilities and Stockholders' Equity
|
$132,163
|
|
$120,281
|
|
|
|
|
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content:https://www.prnewswire.com/news-releases/natural-alternatives-international-inc-announces-2022-q1-results-301420305.html
SOURCE Natural Alternatives International, Inc.