Natural Alternatives International, Inc. Announces Fiscal 2014 Q2 Results

  Natural Alternatives International, Inc. Announces Fiscal 2014 Q2 Results

PR Newswire

SAN MARCOS, Calif., Feb. 12, 2014

SAN MARCOS, Calif., Feb. 12, 2014 /PRNewswire/ --Natural Alternatives
International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer
and marketer of customized nutritional supplements, today announced net income
of $194,000 or $0.03 per diluted share on net sales of $16.5 million for the
quarter ended December 31, 2013.

Net sales for the three months ended December 31, 2013 increased by $2.8
million or 20.4% from $13.7 million recorded in the comparable prior year
period. For the quarter ended December 31, 2013, contract manufacturing sales
increased $2.5 million or 20.1% from the comparable quarter last year due
primarily to higher sales of established products from existing costumers and
new product sales from new customers. Patent and trademark licensing revenue
increased 39.9% to $1.2 million during the quarter ended December 31, 2013 as
compared to the prior year period. Our branded products sales totaled $278,000
for the second quarter of fiscal 2014 as compared to $338,000 for the
comparable prior year period.

Net sales for the six months ended December 31, 2013 increased 11.6% to $33.6
million from $30.1 million recorded in the comparable prior year period.
Contract manufacturing sales during the first six months of fiscal 2014
increased $3.1 million or 11.4% from the comparable prior year period and
patent and trademark licensing revenue increased $500,000 or 21.5% during this
same period. Our branded products sales decreased $85,000 or 12.5% for the
first six months of fiscal 2014.

Net income for the first six months of fiscal 2014 totaled $282,000 or $0.04
per diluted share compared to net income of $799,000 or $0.12 per diluted
share in the comparable prior year period. The decline in net income was
primarily attributable to lower average sales prices for a portion of our
higher volume products, an unfavorable international sales mix and lower
average EUR exchange rates. Patent litigation and prosecution expenses totaled
$1.3 million for the first six months of fiscal 2014 as compared to $1.4
million for the comparable prior year period.

As of December 31, 2013, we had cash of $16.4 million and working capital of
$29.2 million compared to $16.7 million and $29.4 million, respectively, as of
June 30, 2013. As of December 31, 2013, we had $5.6 million available under
our line of credit agreements with no amount outstanding.

Mark A. LeDoux, Chairman and Chief Executive Officer commented, "As we exited
our fiscal second quarter we realized an improvement in the sales order flow
from several customers who completed their inventory reduction and product and
packaging reconfiguration programs that we reported during the prior quarter.
We continue to see significant growth in multiple Asian markets and continued
business opportunities driven from what we believe is a growing trend to do
business with companies like NAI with a positive regulatory reputation in the
global markets.

"New products have been launched and more are anticipated from our Swiss
subsidiary in Europe, many of which take advantage of the 'approved health
claims' we can help to deliver. With the Sochi Olympics under way, we are
gratified to know that many of the participating Olympians have been training
on our patented CarnoSyn® brand of beta-alanine. We also remain hopeful the
litigation we have initiated against several infringers of our beta-alanine
patents will conclude favorably in the not too distant future. We are
optimistic as we enter the second half of our fiscal year that our financial
performance should continue to improve."

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, our ability to expand our 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

NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
               Three Months Ended                Six Months Ended
               December 31,                      December 31,
               2013             2012             2013             2012
NET SALES      $16,475  100.0%  $13,686  100.0%  $33,630  100.0%  $30,146  100.0%
Cost of goods  13,950   84.7%   11,627   85.0%   28,371   84.4%   24,385   80.9%
sold
Gross profit   2,525    15.3%   2,059    15.0%   5,259    15.6%   5,761    19.1%
Selling,
general &      2,261    13.7%   2,332    17.0%   4,905    14.6%   5,005    16.6%
administrative
expenses
INCOME (LOSS)
FROM           264      1.6%    (273)    -2.0%   354      1.1%    756      2.5%
OPERATIONS
Other income
(expense) ,    1        0.0%    7        0.1%    33       0.1%    (5)      0.0%
net
INCOME (LOSS)  265      1.6%    (266)    -1.9%   387      1.2%    751      2.5%
BEFORE TAXES
Income tax     71               (368)            105              (48)
expense
NET INCOME     $              $              $              $  
               194             102             282             799
NET INCOME PER
COMMON SHARE:
Basic:         $0.03            $0.01            $0.04            $0.12
Diluted:       $0.03            $0.01            $0.04            $0.12
WEIGHTED
AVERAGE COMMON
SHARES
OUTSTANDING:
Basic          6,817            6,891            6,817            6,904
Diluted        6,850            6,900            6,847            6,915



NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
                                               December 31,  June 30,
                                               2013          2013
ASSETS
Cash and cash equivalents                      $16,415       $16,697
Accounts receivable, net                       5,639         6,605
Inventories, net                               11,777        10,035
Deferred income taxes                          609           609
Other current assets                           1,214         1,377
 Total current assets                       35,654        35,323
Property and equipment, net                    9,298         9,205
Deferred income taxes                          1,527         1,527
Other noncurrent assets, net                   746           585
 Total Assets                               $47,225       $46,640
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities      $6,653        $6,076
Deferred rent                                  75            225
 Total Liabilities                          6,728         6,301
Stockholders' Equity                           40,497        40,339
 Total Liabilities and Stockholders' Equity $47,225       $46,640



SOURCE Natural Alternatives International, Inc.

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