SAN MARCOS, Calif., May 3 /PRNewswire-FirstCall/ -- Natural Alternatives
International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator and
manufacturer of customized nutritional supplements, today announced net income
of $277,000 or $0.04 per diluted share on revenue of $22.5 million for the
third quarter ended March 31, 2005.
For the first nine months of fiscal 2005, revenue increased 21% to
$66.8 million from $55.2 million for the comparable period last year. The
growth in revenue resulted primarily from a 28% increase in contract
manufacturing sales. Income before income taxes increased 34% to $2.8 million
from $2.1 million for the comparable period last year. Net income decreased
to $1.9 million or $0.30 per diluted share compared to $2.0 million or
$0.32 per diluted share in the comparable period last year.
Third quarter revenue increased 6% to $22.5 million from $21.3 million for
the comparable quarter last year. Revenue growth resulted primarily from an
8% increase in contract manufacturing sales. Income before income taxes
decreased to $398,000 from $868,000 in the comparable quarter last year. Net
income decreased to $277,000 or $0.04 per diluted share from $855,000 or
$0.13 per diluted share for the comparable quarter last year.
As of March 31, 2005, NAI had cash and working capital of $3.5 million and
$15.2 million, respectively, compared to $7.5 million and $17.5 million,
respectively, at June 30, 2004. Cash flow from operating activities for the
first nine months of fiscal 2005 was $1.9 million. We invested $6.3 million
in the expansion of our Vista, California manufacturing facility, which
included the acquisition of additional manufacturing equipment. We funded our
capital expenditures primarily from available cash on hand. As of March 31,
2005, we had $6.1 million available under our working capital line of credit.
President Randell Weaver stated, "We are pleased with the $700,000
improvement in pretax income despite incurring high regulatory compliance and
related costs primarily relating to the Good Manufacturing Practices audit by
the Therapeutic Goods Administration of Australia (TGA). The TGA performed
their physical audit of our facilities during this past quarter. There can be
no assurance that we will receive the TGA's final certification, however, we
expect we will receive it this quarter. Third quarter revenue and earnings
were in line with our previous statements. We currently anticipate revenue
and profitability for our fourth quarter to be consistent with our third
quarter."
CEO Mark Le Doux commented, "We have extended our business relationship
with NSA. The strategic relationship between NSA and NAI has prospered over
the last thirteen years and we look forward to assisting NSA in its continuing
growth."
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, receiving TGA certification, receiving continuing support from our
larger customers, future financial and operating results and our strategic
plans. 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)
March 31, June 30,
2005 2004
----------- ----------
(Unaudited)
ASSETS
Cash and cash equivalents $3,492 $7,495
Accounts receivable, net 8,666 8,889
Inventories, net 13,776 12,863
Deferred income taxes 951 1,010
Other current assets 1,387 633
----------- ----------
Total current assets 28,272 30,890
Property and equipment, net 16,392 11,380
Other assets 185 198
----------- ----------
Total Assets $44,849 $42,468
=========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $13,108 $13,422
Long-term debt, less
current installments 3,216 3,841
Deferred income taxes 717 717
Deferred rent 1,262 220
Long-term pension liability 196 140
----------- ----------
Total Liabilities 18,499 18,340
----------- ----------
Stockholders' Equity 26,350 24,128
----------- ----------
Total Liabilities and
Stockholders' Equity $44,849 $42,468
=========== ==========
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
Three months ended Nine months ended
March 31, March 31,
--------------------- ---------------------
2005 2004 2005 2004
---------- ---------- --------- ----------
(Unaudited) (Unaudited)
NET SALES $22,490 $21,268 $66,762 $55,184
Cost of goods sold 18,277 16,215 52,639 42,090
---------- ---------- ---------- ----------
Gross profit 4,213 5,053 14,123 13,094
Selling, general &
administrative expenses 3,538 4,047 11,172 10,909
---------- ---------- ---------- ----------
INCOME FROM OPERATIONS 675 1,006 2,951 2,185
Other expense, net 277 138 182 116
---------- ---------- ---------- ----------
INCOME BEFORE INCOME TAXES 398 868 2,769 2,069
Provision for income taxes 121 13 855 71
---------- ---------- ---------- ----------
NET INCOME $277 $855 $1,914 $1,998
========== ========= ========== ==========
NET INCOME PER COMMON SHARE:
Basic $0.05 $0.15 $0.32 $0.34
========== ========= ========== ==========
Diluted $0.04 $0.13 $0.30 $0.32
========== ========= ========== ==========
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic shares 5,957,923 5,848,841 5,938,322 5,830,508
========== ========== ========== ===========
Diluted shares 6,420,671 6,335,462 6,481,623 6,201,686
========== ========== ========== ===========
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., +1-760-736-7700,
investor@nai-online.com
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