SAN MARCOS, Calif., May 3 /PRNewswire-FirstCall/ -- Natural Alternatives
International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator and
manufacturer of customized nutritional supplements, reported net income of
$855,000 or $0.13 per diluted share on revenue of $21.3 million for the
quarter ended March 31, 2004.
Third quarter revenue increased 55% to $21.3 million from $13.8 million
for the comparable quarter last year. Revenue growth resulted from a 68%
increase in private label contract manufacturing sales partially offset by an
8% decrease in Direct-to-Consumer ("DTC") sales. Income from operations
increased to $1.0 million from $211,000 in the comparable quarter last year.
Net income increased to $855,000 or $0.13 per diluted share from $172,000 or
$0.03 per diluted share for the comparable quarter last year, representing an
earning per share increase of 333%.
For the first nine months of fiscal 2004, revenue increased 38% to
$55.2 million from $39.9 million for the comparable period last year. Revenue
growth resulted from a 46% increase in private label contract manufacturing
sales and a 3% increase in DTC sales. Income from operations increased to
$2.2 million from $869,000 for the comparable period last year. Net income
increased to $2.0 million or $0.32 per diluted share compared to $858,000 or
$0.14 per diluted share in the comparable period last year, an increase of
$1.1 million or $0.18 per diluted share. Excluding the effects of litigation
settlement proceeds of $225,000 in the first quarter of the prior fiscal year,
net income increased $1.4 million or $0.21 per diluted share.
As of March 31, 2004, NAI had cash and working capital of approximately
$3.2 million and $14.2 million, respectively, compared to $5.5 million and
$12.3 million, respectively, at June 30, 2003. During the first nine months
of fiscal 2004, inventory increased $4.4 million in response to higher
anticipated revenue. Additionally, $2.0 million was invested in capital
expenditures for the first nine months of fiscal 2004. These expenditures
were primarily continuing investment in our domestic manufacturing equipment.
Chairman and CEO Mark LeDoux commented, "It is most gratifying to report
record setting revenue in addition to robust earnings per share growth. Our
investments in human and capital resources have yielded definite improvements
in shareholder value. We anticipate continued revenue and earnings growth
emanating from our commitments to excellence in product development,
regulatory assistance, manufacturing and distribution in multiple channels
around the globe."
President Randell Weaver commented, "Recent additions to our product
development and regulatory compliance capabilities demonstrate our continued
focus on developing sustainable competitive advantages that can lead to long-
term growth. In the third quarter we initiated our plans to build out and
occupy newly leased 46,000 square feet of space contiguous to our existing
manufacturing facility in Vista, California. We continue to evaluate
expansion opportunities that could increase product lines, enhance our
manufacturing capabilities or reduce risks associated with a variety of
factors. In the near term we anticipate strengthening our capitalization
through refinancing of our credit facilities."
NAI, headquartered in San Marcos, California, is a leading formulator and
manufacturer 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 and our ability to sustain profitability, maintain adequate
financing, improve liquidity, maintain revenue growth, and implement our
strategic plan. We wish to caution readers that 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.
For further information please contact John R. Reaves, Chief Financial
Officer of Natural Alternatives International, Inc., +1-760-744-7340,
info@nai-online.com.
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
March 31, June 30,
2004 2003
-------- --------
(Unaudited)
ASSETS
Cash and cash equivalents $3,162 $5,482
Accounts receivable, net 6,329 5,668
Inventories, net 12,270 7,845
Other current assets 1,166 766
-------- --------
Total current assets 22,927 19,761
Property and equipment, net 10,804 10,820
Other assets 201 143
-------- --------
Total Assets $33,932 $30,724
-------- --------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $8,731 $7,440
Long-term debt, less current installments 1,955 2,386
Long-term pension liability 200 121
-------- --------
Total Liabilities 10,886 9,947
-------- --------
Stockholders' Equity 23,046 20,777
-------- --------
Total Liabilities and Stockholders'
Equity $33,932 $30,724
-------- --------
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Three months ended Nine months ended
March 31, March 31,
---------------- ----------------
2004 2003 2004 2003
------- ------- ------- -------
(Unaudited) (Unaudited)
NET SALES $21,268 $13,755 $55,184 $39,901
Cost of goods sold 16,215 10,468 42,090 30,367
------- ------- ------- -------
Gross profit 5,053 3,287 13,094 9,534
Selling, general &
administrative expenses 4,047 3,076 10,909 8,665
------- ------- ------- -------
INCOME FROM OPERATIONS 1,006 211 2,185 869
Other income (expense) (138) (33) (116) 10
------- ------- ------- -------
INCOME BEFORE INCOME TAXES 868 178 2,069 879
Provision for income taxes 13 6 71 21
------- ------- ------- -------
NET INCOME $855 $172 $1,998 $858
------- ------- ------- -------
NET INCOME PER COMMON
SHARE:
Basic $0.15 $0.03 $0.34 $0.15
------- ------- ------- -------
Diluted $0.13 $0.03 $0.32 $0.14
------- ------- ------- -------
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING:
Basic shares 5,848,841 5,814,258 5,830,508 5,807,143
------- ------- ------- -------
Diluted shares 6,335,462 6,061,391 6,201,686 6,004,304
------- ------- ------- -------
SOURCE Natural Alternatives International, Inc.
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Related links:
http://www.nai-online.com
CONTACT:
John R. Reaves, Chief Financial Officer of
Natural Alternatives International, Inc., +1-760-744-7340,
info@nai-online.com
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