Welcome!

News Feed Item

Natural Alternatives International, Inc. Announces Fiscal 2014 Q2 Results

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 [email protected].

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 sold

13,950


84.7%


11,627


85.0%


28,371


84.4%


24,385


80.9%

Gross profit

2,525


15.3%


2,059


15.0%


5,259


15.6%


5,761


19.1%

















Selling, general & administrative expenses

2,261


13.7%


2,332


17.0%


4,905


14.6%


5,005


16.6%

















INCOME (LOSS) FROM OPERATIONS

264


1.6%


(273)


-2.0%


354


1.1%


756


2.5%

















Other income (expense) , net

1


0.0%


7


0.1%


33


0.1%


(5)


0.0%

INCOME (LOSS) BEFORE TAXES

265


1.6%


(266)


-1.9%


387


1.2%


751


2.5%

















Income tax expense

71




(368)




105




(48)



















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.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
"MathFreeOn.com is a line coding platform for engineers and scientists. When they want to solve an engineering problem and they have to use software - they have to pay a lot of money for licenses - but with MathFreeOn you don't have to pay a lot of money. Just go to our site and write the code and you can check the result right away," explained Simon Lee, CMO of MathFreeOn, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Cla...
Enterprise IT has been in the era of Hybrid Cloud for some time now. But it seems most conversations about Hybrid are focused on integrating AWS, Microsoft Azure, or Google ECM into existing on-premises systems. Where is all the Private Cloud? What do technology providers need to do to make their offerings more compelling? How should enterprise IT executives and buyers define their focus, needs, and roadmap, and communicate that clearly to the providers?
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, Dave McCarthy, Director of Products at Bsquare Corporation; Alan Williamson, Principal...
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, discussed how VPaaS enables you to move fast, creating scalable video experiences that reach your aud...
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
Amazon has gradually rolled out parts of its IoT offerings in the last year, but these are just the tip of the iceberg. In addition to optimizing their back-end AWS offerings, Amazon is laying the ground work to be a major force in IoT – especially in the connected home and office. Amazon is extending its reach by building on its dominant Cloud IoT platform, its Dash Button strategy, recently announced Replenishment Services, the Echo/Alexa voice recognition control platform, the 6-7 strategic...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
"We are a leader in the market space called network visibility solutions - it enables monitoring tools and Big Data analysis to access the data and be able to see the performance," explained Shay Morag, VP of Sales and Marketing at Niagara Networks, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smart...
Complete Internet of Things (IoT) embedded device security is not just about the device but involves the entire product’s identity, data and control integrity, and services traversing the cloud. A device can no longer be looked at as an island; it is a part of a system. In fact, given the cross-domain interactions enabled by IoT it could be a part of many systems. Also, depending on where the device is deployed, for example, in the office building versus a factory floor or oil field, security ha...
An IoT product’s log files speak volumes about what’s happening with your products in the field, pinpointing current and potential issues, and enabling you to predict failures and save millions of dollars in inventory. But until recently, no one knew how to listen. In his session at @ThingsExpo, Dan Gettens, Chief Research Officer at OnProcess, discussed recent research by Massachusetts Institute of Technology and OnProcess Technology, where MIT created a new, breakthrough analytics model for s...
In IT, we sometimes coin terms for things before we know exactly what they are and how they’ll be used. The resulting terms may capture a common set of aspirations and goals – as “cloud” did broadly for on-demand, self-service, and flexible computing. But such a term can also lump together diverse and even competing practices, technologies, and priorities to the point where important distinctions are glossed over and lost.