Natural Alternatives International, Inc. Announces Fiscal 2014 Q3 Results - NBC12.com - Richmond, VA News

Natural Alternatives International, Inc. Announces Fiscal 2014 Q3 Results

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SOURCE Natural Alternatives International, Inc.

SAN MARCOS, Calif., May 13, 2014 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $622,000 or $0.09 per diluted share on net sales of $19.1 million for the quarter ended March 31, 2014.

Net sales for the three months ended March 31, 2014 increased by $3.3 million or 20.8% from $15.8 million recorded in the comparable prior year period.  For the quarter ended March 31, 2014, contract manufacturing sales increased $3.2 million or 22.0% from the comparable quarter last year due primarily to higher sales of established products to existing costumers and new product sales to new customers. Patent and trademark licensing revenue increased 13.1% to $1.1 million during the quarter ended March 31, 2014 as compared to the prior year period. Our branded products sales totaled $294,000 for the third quarter of fiscal 2014 as compared to $321,000 for the comparable prior year period.

Net sales for the nine months ended March 31, 2014 increased 14.7% to $52.8 million from $46.0 million recorded in the comparable prior year period. Contract manufacturing sales during the first nine months of fiscal 2014 increased $6.3 million or 15.0% from the comparable prior year period and patent and trademark licensing revenue increased $605,000 or 18.9% during this same period. Our branded products sales decreased $112,000 or 11.2% for the first nine months of fiscal 2014.

Net income for the first nine months of fiscal 2014 totaled $904,000 or $0.13 per diluted share compared to net income of $977,000 or $0.14 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 $1.7 million for the first nine months of fiscal 2014 as compared to $1.8 million for the comparable prior year period.

As of March 31, 2014, we had cash of $15.2 million and working capital of $30.5 million compared to $16.7 million and $29.4 million, respectively, as of June 30, 2013. As of March 31, 2014, we had $5.6 million available under our line of credit agreements with no amount outstanding.

Mark A. LeDoux, Chairman and Chief Executive Officer remarked, "The third quarter ending March 31, 2014 demonstrated growth in sales and profitability over the prior period, yielding an increase of over $3 million in revenues and a tripling of profitability.  This growth materialized from a variety of venues, particularly from contract manufacturing requirements for Asia, Europe and North America.  With higher capacity utilization, NAI experienced greater efficiencies in throughput and overhead absorption, and continues to see growth potential in the future in a variety of markets.

"In the last several months we have seen two seminal studies published in peer-reviewed journals extolling the virtues and benefits from the ingestion of our CarnoSyn® and sustained release SR CarnoSyn® beta-alanine ingredient. We continue to seek additional growth opportunities from clinical research surrounding beta-alanine and remain confident the validity and enforceability of our beta-alanine patents will be judicially upheld in the not too distant future." 

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.

Website:  http://www.nai-online.com

 

NATURAL ALTERNATIVES INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except per share data)

(Unaudited)



Three Months Ended


Nine Months Ended



March 31,


March 31,



2014


2013


2014


2013



NET SALES

$19,127


100.0%


$15,835


100.0%


$52,757


100.0%


$45,981


100.0%

Cost of goods sold

15,685


82.0%


12,972


81.9%


44,056


83.5%


37,357


81.2%

Gross profit

3,442


18.0%


2,863


18.1%


8,701


16.5%


8,624


18.8%


Selling, general & administrative expenses

2,274


11.9%


2,294


14.5%


7,179


13.6%


7,299


15.9%


INCOME FROM OPERATIONS

1,168


6.1%


569


3.6%


1,522


2.9%


1,325


2.9%


Other expense , net

(115)


-0.6%


(48)


-0.3%


(82)


-0.2%


(53)


-0.1%

INCOME BEFORE TAXES

1,053


5.5%


521


3.3%


1,440


2.7%


1,272


2.8%


Income tax expense

431




343




536




295




NET INCOME

$     622




$     178




$     904




$     977





NET INCOME PER COMMON SHARE:


Basic:

$0.09




$0.03




$0.13




$0.14




Diluted:

$0.09




$0.03




$0.13




$0.14




WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:


Basic

6,819




6,841




6,818




6,883



Diluted

6,843




6,844




6,846




6,891



 

 

NATURAL ALTERNATIVES INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands)

(Unaudited)



March 31,


June 30,


2014


2013


ASSETS


Cash and cash equivalents

$15,217


$16,697

Accounts receivable, net

6,843


6,605

Inventories, net

14,367


10,035

Deferred income taxes

567


609

Other current assets

1,642


1,377

    Total current assets

38,636


35,323

Property and equipment, net

8,875


9,205

Deferred income taxes

1,116


1,527

Other noncurrent assets, net

902


585

    Total Assets

$49,529


$46,640


LIABILITIES AND STOCKHOLDERS' EQUITY


Accounts payable and accrued liabilities 

$8,354


$6,076

Deferred rent

-


225

    Total Liabilities

8,354


6,301

Stockholders' Equity

41,175


40,339

    Total Liabilities and Stockholders' Equity

$49,529


$46,640

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