SAN MARCOS, Calif., Sept. 9 /PRNewswire/ --Natural Alternatives
International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator and
manufacturer of customized nutritional supplements, reported net income of
$1.1 million or $0.18 per diluted share on revenue of $56.0 million for its
fiscal year ended June 30, 2003.
Fiscal 2003 revenue increased 12% to $56.0 million from $50.0 million in
the prior fiscal year. The revenue growth resulted from a 22% increase in
Direct-to-Consumer ("DTC") sales and a 10% increase in contract manufacturing
sales. Income from operations increased $884,000 to $1.2 million from
$285,000 in the prior fiscal year. Excluding the effects of litigation
settlement proceeds and the income tax refund of $701,000 in the prior fiscal
year, net income increased $1.1 million to $880,000 or $0.15 per diluted share
from a net loss of ($232,000) or ($0.04) per share in the prior fiscal year.
Net income as reported was $1.1 million or $0.18 per diluted share compared to
$3.9 million or $0.67 per diluted share in the prior fiscal year. Fiscal 2003
and 2002 results included receipt of litigation settlement proceeds of
$225,000 and $3.4 million, respectively.
Fourth quarter revenue increased 10% to $16.1 million from $14.7 million
for the comparable quarter last year. The revenue growth resulted from an 11%
increase in contract manufacturing sales and a 3% increase in DTC sales.
Income from operations decreased $229,000 to $300,000 from $529,000 for the
same period of the prior fiscal year. Excluding the effect of the prior year
litigation settlement proceeds of $2.4 million and the income tax refund,
fourth quarter net income decreased $356,000 to $247,000 or $0.04 per diluted
share compared to $603,000 or $0.10 per diluted share for the same period of
the prior fiscal year. Overall, fourth quarter net income as reported
decreased $3.5 million to $247,000 or $0.04 per diluted share from $3.7
million or $0.64 per diluted share for the same period of the prior fiscal
year.
As of June 30, 2003, NAI had cash and working capital of approximately
$5.5 million and $12.3 million, respectively, compared to $640,000 and $8.7
million, respectively, at June 30, 2002.
Chairman and CEO Mark LeDoux commented, " We are encouraged as we conclude
fiscal 2003 by recording our fifth consecutive quarter of sustained income
from operations. Our efforts to develop relationships with new contract
manufacturing customers while strengthening our position with existing
contract manufacturing customers are beginning to produce results. We
anticipate moderate net sales growth for the first quarter of fiscal 2004 from
securing new customers, increasing our production for existing customers and
growing our DTC business."
President Randell Weaver noted that, "During the fiscal fourth quarter we
increased investment in marketing our DTC brands, strengthening our
resources to insure regulatory compliance and conducting clinical studies to
validate product efficacy. We are committing to continue these investments to
provide long-term revenue growth while managing our costs to maintain
profitability in the near term. Additionally, our operating results and
capitalization allow us to begin evaluating expansion opportunities that could
increase our product lines, enhance our manufacturing capabilities or reduce
our risks associated with reliance on a limited number of customers."
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.
CONTACT - John R. Reaves, Chief Financial Officer, Natural Alternatives
International, Inc., 760-744-7340 or info@nai-online.com.
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
June 30, June 30,
2003 2002
________ ________
ASSETS
Cash and cash equivalents $5,482 $640
Restricted cash -- 1,500
Accounts receivable, net 5,668 3,536
Inventories, net 7,845 7,871
Income tax refund receivable -- 701
Other current assets 766 604
________ ________
Total current assets 19,761 14,852
Property and equipment, net 10,820 12,439
Related parties notes receivable 29 118
Other assets 114 101
________ ________
Total Assets $30,724 $27,510
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $7,440 $6,127
Long-term debt, less current installments 2,386 1,576
Long-term pension liability 121 199
________ ________
Total Liabilities 9,947 7,902
________ ________
Stockholders' Equity 20,777 19,608
________ ________
Total Liabilities and Stockholders' Equity $30,724 $27,510
======== ========
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Three months ended Year ended
June 30, June 30,
_______________________ _______________________
2003 2002 2003 2002
__________ __________ __________ __________
(Unaudited)
NET SALES $16,061 $14,652 $55,962 $50,037
Cost of goods sold 12,414 11,300 42,781 39,068
__________ __________ __________ __________
Gross profit 3,647 3,352 13,181 10,969
Selling, general &
administrative
expenses 3,347 2,823 12,012 10,684
__________ __________ __________ __________
INCOME FROM OPERATIONS 300 529 1,169 285
Other income (expense) (27) 2,480 (17) 2,952
__________ __________ __________ __________
INCOME BEFORE
INCOME TAXES 273 3,009 1,152 3,237
Provision for
(benefit from)
income taxes 26 (705) 47 (642)
__________ __________ __________ __________
NET INCOME $247 $3,714 $1,105 $3,879
========== ========== ========== ==========
NET INCOME PER
COMMON SHARE:
Basic $0.04 $0.64 $0.19 $0.67
========== ========== ========== ==========
Diluted $0.04 $0.64 $0.18 $0.67
========== ========== ========== ==========
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
Basic shares 5,815,132 5,785,024 5,809,140 5,787,712
========== ========== ========== ==========
Diluted shares 6,071,709 5,821,026 6,021,155 5,798,453
========== ========== ========== ==========
SOURCE Natural Alternatives International, Inc.
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Related links:
http://www.nai-online.com
CONTACT:
John R. Reaves, Chief Financial Officer,
Natural Alternatives International, Inc., +1-760-744-7340,
info@nai-online.com
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