Highlights
- Second quarter fiscal 2008 net sales of $20.4 million versus $24.1
million in the same quarter last year.
- New private label contract manufacturing relationships established with
initial shipments expected during the second half of fiscal 2008.
SAN MARCOS, Calif., Feb. 8 /PRNewswire-FirstCall/ -- Natural
Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading
formulator, manufacturer and marketer of customized nutritional
supplements, today announced net sales of $20.4 million and a net loss of
$180,000 or $0.03 per share for the three months ended December 31, 2007.
Net sales of $20.4 million in the second quarter of fiscal 2008
declined $3.7 million as compared to $24.1 million for the same quarter
last year. The decrease included a $2.8 million decline in private label
contract manufacturing sales associated primarily with one of our largest
customers and a $900,000 decrease in our branded product business related
primarily to the continued softening of our Dr. Cherry Pathway to
Healing(R) product line.
For the second quarter of fiscal 2008 we reported a net loss of
$180,000, or $0.03 per share, on 7.0 million weighted-average shares
outstanding. For the second quarter of fiscal 2007 we reported net income
of $554,000, or $0.08 per diluted share, on 7.2 million weighted-average
shares outstanding.
Cash flows provided by operating activities for the six months ended
December 31, 2007 were $2.0 million. As of December 31, 2007, NAI had cash
and working capital of $5.0 million and $16.8 million, respectively,
compared to $4.9 million and $16.2 million, respectively, as of June 30,
2007. As of December 31, 2007, we had $7.5 million available under our
working capital line of credit.
President Randell Weaver commented, "As we previously anticipated, our
second quarter sales and profits were significantly impacted by the
reduction in volume from one of our largest private label customers.
Looking forward, during the second half of fiscal 2008 we anticipate sales
to this customer will trend towards sales levels experienced during the
comparable period of fiscal 2007. Additionally, we have established
relationships with two new customers and anticipate initial shipments of
these products during late third or early fourth quarter of this year. We
also expect our branded product sales to improve over our second quarter
results as we enter our stronger catalog season during the third and fourth
quarters."
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 future
financial and operating results, including the amount of our future net
sales and profits, our ability to develop, maintain or increase sales to
new and existing customers and within our branded products business, and
the timing of shipments to new customers. 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 -- Randell L. Weaver, President,
Natural Alternatives International, Inc.,
760-736-7700 or investor@nai-online.com.
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
December 31, June 30,
2007 2007
(Unaudited)
ASSETS
Cash and cash equivalents $5,000 $4,876
Accounts receivable, net 5,839 5,264
Inventories, net 12,890 14,099
Deferred income taxes 1,441 1,441
Other current assets 1,949 2,204
Total current assets 27,119 27,884
Property and equipment, net 14,084 15,059
Goodwill and purchased intangibles, net 4,141 4,268
Other assets 169 169
Total Assets $45,513 $47,380
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $10,283 $11,668
Long-term debt, less current portion 2,050 2,756
Deferred income taxes 1,620 1,620
Deferred rent 1,205 1,238
Long-term pension liability 101 76
Total Liabilities 15,259 17,358
Stockholders' Equity 30,254 30,022
Total Liabilities and Stockholders' Equity $45,513 $47,380
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three Months
Ended Six Months Ended
December 31, December 31,
2007 2006 2007 2006
NET SALES $20,410 $24,049 $45,929 $49,210
Cost of goods sold 16,158 18,347 36,383 37,993
Gross profit 4,252 5,702 9,546 11,217
Selling, general &
administrative expenses 4,524 4,737 9,149 9,420
(LOSS) INCOME FROM OPERATIONS (272) 965 397 1,797
Other expense, net 27 119 55 349
(LOSS) INCOME BEFORE INCOME TAXES (299) 846 342 1,448
(Benefit) Provision for
income taxes (119) 292 99 507
NET (LOSS) INCOME $(180) $554 $243 $941
NET (LOSS) INCOME PER COMMON
SHARE:
Basic $(0.03) $0.08 $0.03 $0.14
Diluted $(0.03) $0.08 $0.03 $0.13
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic 6,980,195 6,840,314 6,947,155 6,780,240
Diluted 6,980,195 7,184,910 7,044,402 7,189,213
SOURCE Natural Alternatives International, Inc.
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Related links:
http://www.nai-online.com
CONTACT:
Randell L. Weaver, President of Natural
Alternatives International, Inc., +1-760-736-7700,
investor@nai-online.com
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