Natural Alternatives International, Inc. Announces Fiscal 2013 Q1 Results

  Natural Alternatives International, Inc. Announces Fiscal 2013 Q1 Results

PR Newswire

SAN MARCOS, Calif., Nov. 14, 2012

SAN MARCOS, Calif., Nov. 14, 2012 /PRNewswire/ --Natural Alternatives
International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer
and marketer of customized nutritional supplements, today announced net income
of $697,000 or $0.10 per diluted share on net sales of $16.5 million for the
quarter ended September 30, 2012.

Net sales during the three months ended September 30, 2012 decreased $1.8
million or 10.3% from $18.3 million recorded in the comparable prior year
period. For the quarter ended September 30, 2012, private label contract
manufacturing sales decreased $1.9 million or 11.2% from the comparable
quarter last year due primarily to lower sales to our two largest customers
and unfavorable foreign currency exchange rates which generated lower average
sales prices during the current year period. Patent and trademark licensing
revenue increased to $1.4 million or 3.0% during the first quarter of fiscal
2013 as compared to $1.3 million for the comparable prior year period. Our
branded products sales totaled $342,000 for the first quarter of fiscal 2013
as compared to $401,000 for the comparable prior year period.

Our revenue concentration risk for our two largest customers decreased to 72%
as a percentage of our total private label contract manufacturing sales for
the first three months of fiscal 2013 compared to 77% in the first three
months of fiscal 2012.

Net income in the first quarter of fiscal 2013 was $697,000 or $0.10 per
diluted share compared to net income of $1.5 million or $0.22 per diluted
share in the first quarter of fiscal 2012. The decrease was primarily
attributable to lower consolidated sales, increased manufacturing costs
associated with lower units of production and increased legal expenses related
to our beta-alanine patent estate.

As of September 30, 2012, NAI had cash of $14.4 million and working capital of
$28.6 million compared to $14.5 million and $27.7 million, respectively, as of
June 30, 2012. As of September 30, 2012, we had $5.5 million available under
our line of credit agreements.

Mark A. Le Doux, Chairman and Chief Executive Officer, noted, "NAI continues
to demonstrate leadership in dietary supplement research, intellectual
property, and manufacturing of supplements. Recently the United States Patent
Office has provided a notice of allowance for one of our latest patent
applications in the field of timed-release beta-alanine. Timed-released
beta-alanine is now available from Natural Alternatives International in the
form of SR CarnoSyn® 800 milligram tablets. With research demonstrating the
added value of this dosage form, we are actively promoting this remarkable
product in various channels of commerce. In addition to this new patent
allowance in the U.S., we have secured similar responses from patent agencies
in Canada and South Korea. In addition, we have additional patent
applications pending globally. While NAI experienced a reduction in contract
manufacturing requirements from its clients in this quarter, we are seeing
signs of additional opportunities on the horizon and are planning to generate
additional revenues while expanding our client base globally."

NAI, headquartered in San Marcos, 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
expectations and beliefs with respect to: our future financial and operating
results, revenue, profits and financial condition, our ability to expand our
contract manufacturing business, contain our fixed costs, expand our market
presence, protect our intellectual property and manage the costs thereof, our
ability to execute our business plan, 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 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 and Quarterly Report on Form 10-Q.

CONTACT – Kenneth Wolf, Chief Operating and 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,
                                         2012                2011
NET SALES                                $ 16,460    100.0%  $ 18,341   100.0%
Cost of goods sold                       12,876      78.2%   13,658     74.5%
Gross profit                             3,584       21.8%   4,683      25.5%
Selling, general & administrative        2,555       15.5%   2,336      12.7%
expenses
INCOME FROM OPERATIONS                   1,029       6.3%    2,347      12.8%
Other (expense) income, net              (12)        -0.1%   83         0.5%
INCOME BEFORE TAXES                      1,017       6.2%    2,430      13.2%
Income tax expense                       320                 902
NET INCOME                               $   697          $  1,528
NET INCOME PER COMMON SHARE:
Basic:                                   $0.10               $0.22
Diluted:                                 $0.10               $0.22
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic                                    6,918               7,013
Diluted                                  6,929               7,014





NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                               September 30  June 30
                                               2012          2012
ASSETS
Cash and cash equivalents                      $14,419       $14,478
Accounts receivable, net                       7,298         8,751
Inventories, net                               9,295         8,355
Deferred income taxes                          699           699
Other current assets                           1,630         2,236
 Total current assets                       33,341        34,519
Property and equipment, net                    10,125        10,647
Deferred income taxes                          1,471         1,471
Other noncurrent assets, net                   471           560
 Total Assets                               $45,408       $47,197
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities      $4,732        $6,836
Deferred rent                                  428           493
 Total Liabilities                          5,160         7,329
Stockholders' Equity                           40,248        39,868
 Total Liabilities and Stockholders' Equity $45,408       $47,197

SOURCE Natural Alternatives International, Inc.

Website: http://www.nai-online.com