Natural Alternatives International, Inc. Announces Fiscal 2014 Q1 Results
SAN MARCOS, Calif., Nov. 13, 2013
SAN MARCOS, Calif., Nov. 13, 2013 /PRNewswire/ -- Natural Alternatives
International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer
and marketer of customized nutritional supplements, today announced net income
of $88,000 or $0.01 per diluted share on net sales of $17.2 million for the
quarter ended September 30, 2013.
Net sales during the three months ended September 30, 2013 increased $700,000
or 4.2% from $16.5 million recorded in the comparable prior year period. For
the quarter ended September 30, 2013, private label contract manufacturing
sales increased $600,000 or 4.0% from the comparable quarter last year due
primarily to higher sales of existing products and new customer product sales.
This increase was partially offset by lower average sales prices for a portion
of our higher volume products, an unfavorable sales mix and lower average EUR
foreign exchange rates. Patent and trademark licensing revenue increased to
$1.52 million or 10.5% during the first quarter of fiscal 2013 as compared to
$1.37 million for the comparable prior year period. Our branded products sales
totaled $317,000 for the first quarter of fiscal 2013 as compared to $342,000
for the comparable prior year period.
Our revenue concentration risk for our two largest customers decreased to 58%
as a percentage of our total private label contract manufacturing sales for
the first three months of fiscal 2014 compared to 72% in the first three
months of fiscal 2013.
Net income in the first quarter of fiscal 2014 was $88,000 or $0.01 per
diluted share compared to net income of $697,000 or $0.10 per diluted share in
the first quarter of fiscal 2013. The decrease was primarily attributable to
an unfavorable sales mix, lower average sales prices and lower average EUR
foreign exchange rates.
As of September 30, 2013, NAI had cash of $14.8 million and working capital of
$29.5 million compared to $16.7 million and $29.4 million, respectively, as of
June 30, 2013. As of September 30, 2013, we had $5.6 million available under
our line of credit agreements.
Mark A. Le Doux, Chairman and Chief Executive Officer noted, "There is no
doubt that NAI management is disappointed with our profitability performance
during this past quarter, however the customer driven activities that resulted
in our profit shortfalls including inventory reductions, new packaging
reconfigurations and shipment delays are expected to be completed during the
present quarter. We have also added new clients who are experiencing
successful launches in their target markets, and continue to see growth in
certain parts of Europe as well as Asia. Several of our existing customers
have also increased their order requirements from NAI to meet demand in
markets such as Australia, Malaysia and South Korea. As a result, we believe
our future operating results will improve as evidenced by our expanding open
order backlog. We remain committed to executing on our business strategy and
growing the business both domestically and internationally."
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.
CONTACT – Kenneth Wolf, Chief Operating and Chief Financial Officer, Natural
Alternatives International, Inc., at 760-736-7700 or email@example.com.
Web site: http://www.nai-online.com
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended
NET SALES $17,155 100.0% $16,460 100.0%
Cost of goods sold 14,421 84.1% 12,758 77.5%
Gross profit 2,734 15.9% 3,702 22.5%
Selling, general & administrative 2,644 15.4% 2,673 16.2%
INCOME FROM OPERATIONS 90 0.5% 1,029 6.3%
Other income (expense) , net 32 0.2% (12) -0.1%
INCOME BEFORE TAXES 122 0.7% 1,017 6.2%
Income tax expense 34 320
NET INCOME $ 88 $ 697
NET INCOME PER COMMON SHARE:
Basic: $0.01 $0.10
Diluted: $0.01 $0.10
WEIGHTED AVERAGE COMMON SHARES
Basic 6,817 6,918
Diluted 6,844 6,929
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
September 30, June 30,
Cash and cash equivalents $14,782 $16,697
Accounts receivable, net 8,185 6,605
Inventories, net 11,510 10,035
Deferred income taxes 609 609
Other current assets 1,400 1,377
Total current assets 36,486 35,323
Property and equipment, net 8,877 9,205
Deferred income taxes 1,527 1,527
Other noncurrent assets, net 664 585
Total Assets $47,554 $46,640
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities $7,148 $6,076
Deferred rent 150 225
Total Liabilities 7,298 6,301
Stockholders' Equity 40,256 40,339
Total Liabilities and Stockholders' Equity $47,554 $46,640
SOURCE Natural Alternatives International, Inc.
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