SAN MARCOS, Calif., Sept. 28 /PRNewswire-FirstCall/ -- Natural
Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading
formulator, manufacturer and marketer of customized nutritional
supplements, today announced it will be unable to file its Annual Report on
Form 10-K for the fiscal year ended June 30, 2007 on a timely basis because
it requires additional time to complete its annual goodwill impairment
testing. NAI expects to file its Annual Report on Form 10-K no later than
October 15, 2007.
While NAI is in the process of finalizing its annual goodwill
impairment testing, it anticipates it will report revenue of $97.1 million
for the fiscal year ended June 30, 2007 compared to $99.6 million for the
fiscal year ended June 30, 2006, a 2.5% decrease, and revenue of $24.1
million for the fourth quarter of fiscal 2007, a 29.8% decrease from the
comparable quarter last year. NAI also anticipates that it will report
significantly lower operating income, net income and net income per share
for the fourth quarter of fiscal 2007 and for the fiscal year ended June
30, 2007, as compared with its results for the comparable periods for
fiscal 2006, due primarily to the decrease in revenue and, with respect to
the fiscal year results, higher selling, general and administrative
expenses. Selling, general and administrative expenses increased $2.3
million, or 14.1%, to $19.0 million for the fiscal year ended June 30, 2007
from $16.6 million for the fiscal year ended June 30, 2006, and decreased
$875,000, or 15.6%, to $4.7 million for the fourth quarter of fiscal 2007
from $5.6 million for the fourth quarter of fiscal 2006. The increase in
selling, general and administrative expenses was due primarily to the
inclusion of the results from NAI's acquisition of Real Health
Laboratories, Inc. for a full year in fiscal 2007 as compared to a partial
year in fiscal 2006. The decrease in selling, general and administrative
expenses for the fourth quarter of fiscal 2007 from the comparable quarter
in the prior year was primarily due to reduced personnel expenses from the
termination of certain sales and marketing personnel in June 2006.
Additionally, NAI believes it will be required to recognize a non-cash,
material goodwill impairment charge, which will have a negative effect on
its results of operations but will not impact its cash flows or cash
position. As NAI has not yet completed its annual goodwill impairment
testing, it is unable to provide a reasonable estimate of the amount of
such charge at this time.
President Randell Weaver said, "Revenue for the fourth quarter of
fiscal 2007 was slightly higher than third quarter revenue though it was
down compared to the year ago quarter because the fourth quarter of fiscal
2006 included significant initial shipments of a single product for a new
customer. Revenue in the first quarter of fiscal 2008 is expected to exceed
revenue in the fourth quarter of fiscal 2007 and is expected to be in line
with revenue in the first quarter of fiscal 2007. We expect to report
working capital of $16.1 million at June 30, 2007 compared to $13.2 million
at June 30, 2006. We also expect to report cash at June 30, 2007 of $4.9
million. As of June 30, 2007, there were no outstanding borrowings under
our working capital line of credit. We expect to finalize our annual
goodwill impairment testing no later than October 15, 2007 and issue a
release of our final corporate earnings at that time."
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 our clients 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
revenue, the final results of our year-end financial reporting for fiscal
2007, the timing of the filing of our Annual Report on Form 10-K for fiscal
2007, the timing and content of any future press releases, and the amount
of the goodwill impairment charge. 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.
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., +1-760-736-7700,
investor@nai-online.com
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