SAN MARCOS, Calif., May 6 /PRNewswire-FirstCall/ --Natural Alternatives
International ("NAI"), Inc. (Nasdaq: NAII), a leading formulator and
manufacturer of customized nutritional supplements, reported net income of
$858,000 or $0.14 per diluted share on revenue of $39.9 million in its first
nine months of fiscal 2003 and net income of $172,000 or $0.03 per diluted
share on revenue of $13.8 million for the three months ended March 31, 2003.
Third quarter revenue increased 7% to $13.8 million from $12.8 million for
the comparable quarter last year. The revenue growth resulted from a 24%
increase in Direct-to-Consumer ("DTC") sales combined with a 4% increase in
contract manufacturing sales. Income from operations increased $270,000 to
$211,000 from a loss from operations of ($59,000) for the same period of the
prior year. Excluding the effect of the prior year litigation settlement
proceeds of $1 million, third quarter net income increased $413,000 to
$172,000 or $0.03 per diluted share compared to a net loss of ($241,000) or
($0.04) per share for the same period of the prior year. Overall, third
quarter net income as reported decreased $587,000 to $172,000 or $0.03 per
diluted share from $759,000 or $0.13 per diluted share for the comparable
quarter last year due to litigation settlement proceeds received in the prior
year.
For the first nine months of fiscal 2003, revenue increased 13% to
$39.9 million from $35.4 million for the comparable period last year. The
revenue growth resulted from a 30% increase in DTC sales and a 9% increase in
contract manufacturing sales. For the first nine months of fiscal 2003, net
income increased $693,000 to $858,000 or $0.14 per diluted share from $165,000
or $0.03 per diluted share for the comparable period last year. The first
nine months of fiscal 2003 and 2002 included receipt of litigation settlement
proceeds of $225,000 and $1.0 million, respectively. Excluding the effects of
litigation settlement proceeds, net income increased $1.5 million to $633,000
or $0.11 per diluted share from a net loss of ($835,000) or ($0.14) per share
for the same period of the prior year.
As of March 31, 2003, NAI had cash and working capital of approximately
$4.2 million and $11.8 million, respectively, compared to $640,000 and
$8.7 million, respectively, as of June 30, 2002.
Chairman and CEO Mark LeDoux said, "During the fiscal third quarter, we
began to increase spending in marketing and brand development in our DTC
business with the announced signing of Jennifer O'Neill and testing of Dr.
Cherry's Pathway to Healing(TM) brand in several new television markets. We
are actively pursuing additional licensees and other initiatives to build our
DTC business. We continue to focus on serving our valued primary customers
and developing relationships with other strong prospective contract
manufacturing customers while we pursue strategic partnerships for the
development and marketing of proprietary products. Looking ahead, we
anticipate revenue growth to be moderate in the fiscal fourth quarter and
marketing expenses to increase while we continue to maintain consistent
operating profitability."
NAI, headquartered in San Marcos, California, is a leading formulator and
manufacturer of nutritional supplements that provides strategic partnering
services to its customers. The Company's 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 the Company's intentions,
expectations and beliefs concerning future events, including, among other
things, expectations and beliefs with respect to future financial and
operating results and the ability to sustain profitability, maintain adequate
financing, improve liquidity, maintain revenue growth, and implement its
strategic plan. The Company wishes 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. The Company'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
the Company with the Securities and Exchange Commission, including NAI's most
recent Quarterly Report on Form 10Q and Annual Report on Form 10-K.
For further information please contact: John R. Reaves, Chief Financial
Officer, Natural Alternatives International, Inc., +1-760-744-7340 or
info@nai-online.com.
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
March 31, June 30,
2003 2002
------------- ------------
(Unaudited)
ASSETS
Cash and cash equivalents $4,218 $640
Restricted cash -- 1,500
Accounts receivable, net 4,508 3,536
Inventories, net 8,474 7,871
Income tax refund receivable -- 701
Other current assets 1,190 604
------------- ------------
Total current assets 18,390 14,852
Property and equipment, net 11,248 12,439
Related parties notes receivable 47 118
Other assets 127 101
------------- ------------
Total Assets $29,812 $27,510
============= ============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $6,596 $6,127
Long-term debt, less current installments 2,529 1,576
Long-term pension liability 135 199
------------- ------------
Total Liabilities 9,260 7,902
------------- ------------
Stockholders' Equity 20,552 19,608
------------- ------------
Total Liabilities and
Stockholders' Equity $29,812 $27,510
============= ============
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
(Unaudited)
Three months ended Nine months ended
March 31, March 31,
------------------------ -------------------------
2003 2002 2003 2002
----------- ----------- ----------- -----------
NET SALES $13,755 $12,843 $39,901 $35,385
Cost of goods sold 10,468 9,956 30,367 27,768
----------- ----------- ----------- -----------
Gross profit 3,287 2,887 9,534 7,617
Selling, general &
administrative
expenses 3,076 2,946 8,665 7,861
----------- ----------- ----------- -----------
INCOME (LOSS)
FROM OPERATIONS 211 (59) 869 (244)
Other income
(expense) (33) 839 10 472
----------- ----------- ----------- -----------
INCOME BEFORE
INCOME TAXES 178 780 879 228
Provision for
income taxes 6 21 21 63
----------- ----------- ----------- -----------
NET INCOME $172 $759 $858 $165
=========== =========== =========== ===========
NET INCOME PER
COMMON SHARE:
Basic $0.03 $0.13 $0.15 $0.03
=========== =========== =========== ===========
Diluted $0.03 $0.13 $0.14 $0.03
=========== =========== =========== ===========
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
Basic shares 5,814,258 5,794,613 5,807,143 5,788,608
=========== =========== =========== ===========
Diluted shares 6,061,391 5,795,833 6,004,304 5,789,015
=========== =========== =========== ===========
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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