SAN MARCOS, Calif., Oct. 15 /PRNewswire-FirstCall/ -- Natural
Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading
formulator, manufacturer and marketer of customized nutritional
supplements, today announced a net loss of $5.3 million or $0.77 per share
for fiscal year 2007 on revenues of $97.1 million and a fourth quarter net
loss of $6.6 million or $0.96 per share on revenues of $24.1 million.
Included in the fourth quarter and full year results is a non-cash goodwill
impairment charge of $7.0 million.
For the fiscal year ended June 30, 2007, revenues decreased 2.5% to
$97.1 million from $99.6 million in the prior year. The net loss in fiscal
2007 was $5.3 million or $0.77 per share compared to a profit of $2.7
million or $0.39 per fully diluted share in fiscal 2006. The decline in net
income and resulting net loss was primarily attributable to a $7.0 million
non-cash goodwill impairment charge recorded in the fourth quarter.
For the fourth quarter of fiscal 2007 revenues decreased 29.8% to $24.1
million from $34.4 million in the prior year. The decrease in revenues for
the fourth quarter and fiscal 2007 was primarily due to significant initial
shipments in our fiscal 2006 fourth quarter of a single product to one of
our new customers. Shipments to our new customer continued in fiscal 2007
at a lower volume. The net loss in the fourth quarter of fiscal 2007 was
$6.6 million or $0.96 per share compared to a profit of $1.2 million or
$0.16 per fully diluted share in the prior year. The reduction in net
income and resulting net loss was primarily attributable to the $7.0
million non-cash goodwill impairment charge and lower revenues.
As of June 30, 2007, NAI had cash and working capital of $4.9 million
and $16.2 million, respectively, compared to $2.2 million and $13.2
million, respectively, in the prior year. As of June 30, 2007, we had $7.5
million available under our working capital line of credit and no
outstanding borrowings under the credit line.
President Randell Weaver stated, "While not pleased with the goodwill
impairment charge related to our branded products business, we believe our
position in the market will provide many opportunities for growth. In our
contract manufacturing business, we are exploring international
opportunities for delivery of products into Australia, New Zealand,
Malaysia and other Asian countries by potential, new U.S. contract
manufacturing customers. We plan to continue building our branded products
business and expanding on the progress we have made. We are exploring new
options for distribution and working to extend our reach in the retail
market."
CEO Mark LeDoux added, "We believe our balance sheet is strong and
positions us well for future growth. We have invested heavily in our
business and our facilities and intend to continue our efforts to maintain
world-class standards of excellence, building solid and enduring
partnerships, and enriching the world through the best of nutrition."
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 our
competitive positioning and our future growth and financial and operating
results, including the amount of our future revenue and profits, our
ability to implement our strategic plans, to grow our contract
manufacturing business, to enter new markets, to expand and successfully
market our branded products and extend our distribution channels, and to
develop, maintain or increase sales to new and existing customers. 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 -- Randy L. Weaver, President, Natural Alternatives
International, Inc., 760-736-7700 or investor@nai-online.com.
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
June 30, June 30,
2007 2006
--------- ---------
ASSETS
Cash and cash equivalents $4,876 $2,157
Accounts receivable, net 5,264 12,839
Inventories, net 14,099 17,054
Deferred income taxes 1,441 1,059
Other current assets 2,204 1,916
--------- ---------
Total current assets 27,884 35,025
Property and equipment, net 15,059 15,943
Goodwill and purchased intangibles, net 4,268 11,303
Other assets, net 169 182
--------- ---------
Total Assets $47,380 $62,453
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $11,668 $21,853
Long-term debt, less current portion 2,756 4,596
Deferred income taxes 1,620 1,260
Deferred rent 1,238 1,262
Long-term pension liability 76 191
--------- ---------
Total Liabilities 17,358 29,162
--------- ---------
Stockholders' Equity 30,022 33,291
--------- ---------
Total Liabilities and Stockholders' Equity $47,380 $62,453
========= =========
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
(Unaudited)
Three months ended Year ended
June 30, June 30,
------------------------ --------------------------
2007 2006 2007 2006
---------- ----------- ------------ ------------
NET SALES $24,127 $34,380 $97,128 $99,612
Cost of goods sold 19,455 26,808 75,842 78,364
---------- ----------- ------------ ------------
Gross profit 4,672 7,572 21,286 21,248
Selling, general &
administrative
expenses 4,747 5,622 18,968 16,630
Non-cash goodwill
impairment charge 7,037 - 7,037 -
---------- ----------- ------------ ------------
INCOME (LOSS) FROM
OPERATIONS (7,112) 1,950 (4,719) 4,618
Other income (expense),
net 19 (217) (447) (507)
---------- ----------- ------------ ------------
INCOME (LOSS) BEFORE
INCOME TAXES (7,093) 1,733 (5,166) 4,111
Provision for (benefit
from) income taxes (498) 557 119 1,441
---------- ----------- ------------ ------------
NET INCOME (LOSS) $(6,595) $1,176 $(5,285) $2,670
========== =========== ============ ============
NET INCOME (LOSS)
PER COMMON SHARE:
Basic $(0.96) $0.18 $(0.77) $0.42
========== =========== ============ ============
Diluted $(0.96) $0.16 $(0.77) $0.39
========== =========== ============ ============
WEIGHTED AVERAGE
COMMON SHARES
OUTSTANDING:
Basic shares 6,898,101 6,589,308 6,836,018 6,340,110
========== =========== ============ ============
Diluted shares 6,898,101 7,168,908 6,836,018 6,775,661
========== =========== ============ ============
SOURCE Natural Alternatives International, Inc.
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Related links:
http://www.nai-online.com/
CONTACT:
Randy L. Weaver, President of Natural
Alternatives International, Inc., +1-760-736-7700,
investor@nai-online.com
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