Natural Alternatives International, Inc. Announces Fiscal 2013 Results

    Natural Alternatives International, Inc. Announces Fiscal 2013 Results

PR Newswire

SAN MARCOS, Calif., Sept. 19, 2013

SAN MARCOS, Calif., Sept. 19, 2013 /PRNewswire/ -- Natural Alternatives
International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer
and marketer of customized nutritional supplements, today announced net income
of $1.6 million, or $0.23 per diluted share, on net sales of $62.8 million for
the fiscal year ended June 30, 2013.

Fiscal 2013 net sales from contract manufacturing activities decreased $6.6
million as compared to the prior fiscal year due primarily to lower volumes of
existing products in existing markets, lower average sales prices for a
portion of our higher volume products and lower average EUR exchange rates.
Royalty and licensing income related to license agreements for the use of our
CarnoSyn® beta-alanine related patents and trademarks increased 2% to $4.7
million during fiscal 2013 as compared to $4.6 million for fiscal 2012, and
raw material sales of beta-alanine totaled $103,000 during fiscal 2013 as
compared to $3.4 million for fiscal 2012. During the second and third quarters
of fiscal 2012, NAI purchased approximately $3.2 million of beta-alanine raw
material to help ensure sufficient inventory to meet anticipated future
customer demand. The majority of this raw material was sold or consumed during
the third and fourth quarters of fiscal 2012. Due to the improvement in the
worldwide supply of beta-alanine during late fiscal 2012, NAI discontinued its
purchase and sale of beta-alanine raw materials during fiscal 2013. Net sales
from our branded products declined $238,000 to $1.3 million during fiscal 2013
as compared to the prior fiscal year.

The fiscal 2013 net sales decreases, coupled with higher per unit
manufacturing costs associated with lower production levels, contributed to a
$4.0 million decrease in income from operations during fiscal 2013 as compared
to the prior fiscal year.

Net income for fiscal 2013 was $1.6 million, or $0.23 per diluted share, as
compared to net income of $4.2 million for fiscal 2012, or $0.59 per diluted
share.

Net sales for the fourth quarter ended June 30, 2013 decreased to $16.8
million as compared to $20.9 million for the prior year period. The decrease
in net sales during the current quarter was primarily related to a $3.0
million of reduction in beta-alanine raw material sales and decreased contract
manufacturing sales from existing customers, which was partially offset by a
$708,000 increase in royalty and licensing income. Net income in the fourth
quarter of fiscal 2013 was $593,000, or $0.09 per diluted share, as compared
to net income of $777,000, or $0.11 per diluted share, in the fourth quarter
of fiscal 2012. The decrease in net income on a quarter over quarter basis was
attributable primarily to lower contract manufacturing sales and beta-alanine
raw material sales.

As of June 30, 2013, NAI had cash and cash equivalents of $16.7 million and
working capital of $29.4 million compared to $14.5 million and $27.7 million,
respectively, as of June 30, 2012. As of June 30, 2013, we had no debt
outstanding and $5.5 million available under our working capital lines of
credit.

Mark A. LeDoux, Chairman and Chief Executive Officer, stated, "During fiscal
2013 NAI experienced variable conditions in business activities that included
customer driven inventory reductions, product pricing pressures and delayed
new product launches. Even in the face of these headwinds, and our continued
significant investment in prosecuting our growing patent estate, the fourth
quarter demonstrated increases in patent and trademark royalty and licensing
income through expanding acceptance of the usage of CarnoSyn® beta-alanine.
While contract manufacturing sales were lower for a variety of reasons in the
last fiscal year, we believe we remain poised to experience meaningful growth
in both our top line sales and operating income for the entirety of fiscal
2014 primarily as a result of expanded demand from various existing and new
customer relationships."

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
future financial and operating results, including the amount of our future
revenue and profits and our future 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 the availability of beta-alanine, 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 – 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                Twelve Months Ended
               June 30,                          June 30,
               2013             2012             2013             2012
NET SALES      $        100.0%  $        100.0%  $        100.0%  $      100.0%
               16,816          20,898          62,797          72,822
Cost of goods  13,347   79.4%   17,606   84.2%   51,047   81.3%   57,371  78.8%
sold
Gross profit   3,469    20.6%   3,292    15.8%   11,750   18.7%   15,451  21.2%
Selling,
general &      2,641    15.7%   2,295    11.0%   9,597    15.3%   9,251   12.7%
administrative
expenses
INCOME FROM    828      4.9%    997      4.8%    2,153    3.4%    6,200   8.5%
OPERATIONS
Other
(expense)      (7)      0.0%    5        0.0%    (60)     -0.1%   42      0.1%
income, net
INCOME BEFORE  821      4.9%    1,002    4.8%    2,093    3.3%    6,242   8.6%
TAXES
Income tax     228              225              523              2,084
expense
NET INCOME     $             $             $              $  
               593             777             1,570            4,158
NET INCOME PER
COMMON SHARE:
Basic:         $0.09            $0.11            $0.23            $0.60
Diluted:       $0.09            $0.11            $0.23            $0.59
WEIGHTED
AVERAGE COMMON
SHARES
OUTSTANDING:
Basic          6,827            6,960            6,869            6,978
Diluted        6,867            6,975            6,885            6,988



NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                               June 30  June 30,
                                               2013     2012
ASSETS
Cash and cash equivalents                      $16,697  $14,478
Accounts receivable, net                       6,605    8,751
Inventories, net                               10,035   8,355
Deferred income taxes                          609      699
Other current assets                           1,377    2,236
 Total current assets                       35,323   34,519
Property and equipment, net                    9,205    10,647
Deferred income taxes                          1,527    1,471
Other noncurrent assets, net                   585      560
 Total Assets                               $46,640  $47,197
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities      $6,076   $6,836
Deferred rent                                  225      493
 Total Liabilities                          6,301    7,329
Stockholders' Equity                           40,339   39,868
 Total Liabilities and Stockholders' Equity $46,640  $47,197

SOURCE Natural Alternatives International, Inc.

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