Natural Alternatives International, Inc. Announces Fiscal 2013 Q3 and YTD Results

  Natural Alternatives International, Inc. Announces Fiscal 2013 Q3 and YTD
                                   Results

PR Newswire

SAN MARCOS, Calif., May 14, 2013

SAN MARCOS, Calif., May 14, 2013 /PRNewswire/ -- Natural Alternatives
International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer
and marketer of customized nutritional supplements, today announced net income
of $178,000 or $0.03 per diluted share on net sales of $15.8 million for the
quarter ended March 31, 2013.

Net sales for the three months ended March 31, 2013 decreased $1.6 million or
9.1% from $17.4 million recorded in the comparable prior year period. For the
quarter ended March 31, 2013, contract manufacturing sales decreased $438,000
or 2.9% from the comparable quarter last year due primarily to lower sales to
existing customers, lower average sales prices for a portion of our higher
volume products and lower average EUR exchange rates. Patent and trademark
licensing revenue decreased 51.8% to $1.0 million during the quarter ended
March 31, 2013 as compared to $2.1 million for the prior year period. This
decrease resulted from lower patent licensing fee payments totaling $654,000
along with a reduction in beta-alanine raw material sales totaling $418,000.
This licensing revenue was generated from our patent estate pursuant to
license and supply agreements with third parties for the use and distribution
of the ingredient known as beta-alanine sold under our CarnoSyn® trade name.
Our branded products sales totaled $321,000 for the third quarter of fiscal
2013 as compared to $387,000 for the comparable prior year period.

Net sales for the nine months ended March 31, 2013 decreased to $46.0 million
or 11.5% from $51.9 million recorded in the comparable prior year period.
Contract manufacturing sales during the first nine months of fiscal 2013
decreased $4.8 million or 10.3% from the comparable prior year period and
patent and trademark licensing revenue decreased 22.7% or $939,000 during this
same period. Our branded products sales decreased $191,000 or 16.0% for the
first nine months of fiscal 2013.

Net income for the first nine months of fiscal 2013 totaled $977,000 or $0.14
per diluted share compared to net income of $3.4 million or $0.48 per diluted
share in the comparable prior year period. The decrease was primarily
attributable to lower contract manufacturing sales and patent and trademark
licensing revenue, increased raw material and manufacturing production costs,
unfavorable foreign currency exchange rates and increased patent and
prosecution expenses which totaled $1.8 million for the first nine months of
fiscal 2013.

As of March 31, 2013, we had cash of $14.6 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 March 31, 2013, we had $5.5 million available under our
line of credit agreements.

"As anticipated, the quarter ended March 31, 2013 experienced various
headwinds, but I am gratified we achieved a profit for the quarter in spite of
these factors," noted Chairman and Chief Executive Officer Mark A. Le Doux.
"As the Food and Drug Administration continues in its efforts to point out
significant failings in compliance of the Good Manufacturing Practices with
others in our industry, we continue to receive inquiries from a variety of
potential customers who wish to protect their brand reputations by upgrading
their supply chain relationships through a partnership with NAI.

"During the current quarter we have begun to see traction building with
certain client initiatives which we believe should result in increased orders
in future periods. While we continue to support research in the uses for
CarnoSyn® beta-alanine and at the same time actively pursue infringers, we are
seeing continued growth in the adoption of CarnoSyn® beta-alanine in more and
more product offerings."

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, including the amount of our future revenue and profits and our future
financial condition, market acceptance and media attention towards our
CarnoSyn® beta-alanine, our ability to expand our domestic and international
contract manufacturing business and patent estate, comply with Good
Manufacturing Practices and other applicable regulations and standards,
improve stockholder value, remain debt free, develop, maintain or increase
sales to new and existing customers, and successfully maintain and enforce our
intellectual property rights, 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



CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
               Three Months Ended                Nine Months Ended
               March 31,                         March 31,
               2013             2012             2013             2012
NET SALES      $15,835  100.0%  $17,422  100.0%  $45,981  100.0%  $51,924  100.0%
Cost of goods  13,057   82.5%   13,299   76.3%   37,700   82.0%   39,765   76.6%
sold
Gross profit   2,778    17.5%   4,123    23.7%   8,281    18.0%   12,159   23.4%
Selling,
general &      2,209    14.0%   2,493    14.3%   6,956    15.1%   6,956    13.4%
administrative
expenses
INCOME FROM    569      3.6%    1,630    9.4%    1,325    2.9%    5,203    10.0%
OPERATIONS
Other
(expense)      (48)     -0.3%   (19)     -0.1%   (53)     -0.1%   37       0.1%
income, net
INCOME BEFORE  521      3.3%    1,611    9.2%    1,272    2.8%    5,240    10.1%
TAXES
Income tax     343              543              295              1,859
expense
NET INCOME     $              $               $              $ 
               178             1,068            977             3,381
NET INCOME PER
COMMON SHARE:
Basic:         $0.03            $0.15            $0.14            $0.48
Diluted:       $0.03            $0.15            $0.14            $0.48
WEIGHTED
AVERAGE COMMON
SHARES
OUTSTANDING:
Basic          6,841            6,969            6,883            6,984
Diluted        6,844            6,979            6,891            6,993



NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                               March 31  June 30,
                                               2013      2012
ASSETS
Cash and cash equivalents                      $14,638   $14,478
Accounts receivable, net                       6,115     8,751
Inventories, net                               10,080    8,355
Deferred income taxes                          699       699
Other current assets                           1,890     2,236
 Total current assets                       33,422    34,519
Property and equipment, net                    9,717     10,647
Deferred income taxes                          1,471     1,471
Other noncurrent assets, net                   493       560
 Total Assets                               $45,103   $47,197
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities      $4,794    $6,836
Deferred rent                                  300       493
 Total Liabilities                          5,094     7,329
Stockholders' Equity                           40,009    39,868
 Total Liabilities and Stockholders' Equity $45,103   $47,197



SOURCE Natural Alternatives International, Inc.

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