SAN MARCOS, Calif., May 1 /PRNewswire-FirstCall/ -- Natural
Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading
formulator, manufacturer and marketer of customized nutritional
supplements, today announced net income of $621,000 or $0.09 per diluted
share on net sales of $23.3 million for the third quarter ended March 31,
2006.
Net income increased 124% to $621,000 or $0.09 per diluted share from
$277,000 or $0.04 per diluted share for the comparable quarter last year.
Income from operations was $1.1 million compared to $675,000 in the
comparable quarter last year. Third quarter net sales increased 4% to $23.3
million from $22.5 million for the comparable quarter last year. Net sales
from our recent acquisition of Real Health Laboratories, Inc. ("RHL") were
$2.7 million in the quarter.
As of March 31, 2006, NAI had cash and working capital of $1.6 million
and $12.7 million, compared to $1.9 million and $14.4 million at June 30,
2005, respectively.
CEO Mark LeDoux commented, "During the third quarter we integrated
previously outsourced fulfillment activities for our Dr. Cherry Pathway to
Healing(R) product line into RHL's existing operation, which should
generate cost savings in future periods. We are pleased with our progress
related to the integration of RHL and expect to realize additional
strategic and operational benefits."
President Randell Weaver added, "During the third quarter, we invested
in inventory and made substantial progress in completing orders for our two
new contract manufacturing customers. Though deliveries through March 31
were limited, in April we began regular deliveries and expect to continue
for the remainder of the fourth quarter. We expect consolidated net sales
to exceed $33 million in the fourth quarter. We are committed to growing
and strengthening the relationships with our new and existing highly valued
customers."
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 the client 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, our ability to successfully integrate RHL's operations and the
impact on profitability of such integration, our ability to realize
strategic, operational and financial benefits from the acquisition and
integration of RHL, to continue to implement our strategic plans, to
complete orders and make deliveries to our new customers within specified
time periods, and to develop and increase sales to new and existing
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 -- John R. Reaves, Chief Financial Officer, Natural Alternatives
International, Inc., 760-736-7700 or investor@nai-online.com.
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
March 31, June 30,
2006 2005
---------- ----------
ASSETS
Cash and cash equivalents $1,566 $1,916
Accounts receivable, net 6,420 10,834
Inventories, net 23,484 12,987
Deferred income taxes 559 421
Other current assets 2,156 1,012
---------- ----------
Total Current Assets 34,185 27,170
Property and equipment, net 15,664 16,507
Goodwill and purchased intangibles, net 11,446 -
Deferred income taxes 276 276
Other noncurrent assets, net 194 185
---------- ----------
Total Assets $61,765 $44,138
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $21,471 $12,772
Deferred tax liability 1,737 -
Long-term debt, less current installments 5,095 2,979
Deferred rent 1,269 1,264
Long-term pension liability 283 206
---------- ----------
Total Liabilities 29,855 17,221
---------- ----------
Stockholders' Equity 31,910 26,917
---------- ----------
Total Liabilities and Stockholders' Equity $61,765 $44,138
========== ==========
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
--------------------- ---------------------
2006 2005 2006 2005
--------- --------- --------- ---------
NET SALES $23,284 $22,490 $64,885 $66,762
Cost of goods sold 17,285 18,277 50,640 52,639
--------- --------- --------- ---------
Gross profit 5,999 4,213 14,245 14,123
Selling, general &
administrative expenses 4,852 3,538 11,577 11,172
--------- --------- --------- ---------
INCOME FROM OPERATIONS 1,147 675 2,668 2,951
Other expense, net 170 277 290 182
--------- --------- --------- ---------
INCOME BEFORE INCOME TAXES 977 398 2,378 2,769
Provision for income taxes 356 121 884 855
--------- --------- --------- ---------
NET INCOME $621 $277 $1,494 $1,914
========= ========= ========= =========
NET INCOME PER COMMON SHARE:
Basic $0.09 $0.05 $0.24 $0.32
========= ========= ========= =========
Diluted $0.09 $0.04 $0.22 $0.30
========= ========= ========= =========
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
Basic 6,571,924 5,957,923 6,257,043 5,938,322
========= ========= ========= =========
Diluted 7,005,954 6,420,671 6,653,383 6,481,623
========= ========= ========= =========
SOURCE Natural Alternatives International, Inc.
 back to top
Related links:
http://www.nai-online.com
CONTACT:
John R. Reaves, Chief Financial Officer of
Natural Alternatives International, Inc., +1-760-736-7700,
investor@nai-online.com
|
