SAN MARCOS, Calif., Oct. 24 /PRNewswire-FirstCall/ -- Natural Alternatives
International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator and
manufacturer of customized nutritional supplements, today announced net income
of $412,000 or $0.06 per diluted share on net sales of $21.7 million for the
three months ended September 30, 2005.
First quarter net sales decreased 4% to $21.7 million from $22.7 million
for the comparable quarter last year. The reduction in net sales resulted
primarily from the decrease in private label contract manufacturing sales.
Income from operations decreased to $678,000 from $1.4 million in the
comparable quarter last year. Net income decreased to $412,000 or $0.06 per
diluted share from $852,000 or $0.13 per diluted share for the comparable
quarter last year.
As of September 30, 2005, NAI had cash and working capital of $5.6 million
and $15.3 million compared to $1.9 million and $14.4 million at June 30, 2005,
respectively. Cash flows from operating activities for the first quarter were
$3.8 million.
President Randell Weaver commented, "An increase in revenue from our
largest customer was offset by a reduction in revenue from our second largest
and other contract manufacturing customers. As we anticipate the decline in
revenue to continue in the second quarter of fiscal 2006, we are responding
appropriately to reduce our cost structure and remain profitable. We continue
to identify and evaluate acquisition opportunities that could increase product
lines, expand distribution channels or enhance manufacturing capabilities."
CEO Mark LeDoux added, "We have made a considerable investment in our
recent facility expansion and TGA recertification in an effort to develop new
relationships with large, quality oriented contract manufacturing customers.
We believe this strategy is beginning to be rewarded. We have received
initial purchase orders from two new customers who are leaders in the direct
sales marketing channel. We expect to fill the initial orders in our fiscal
third and fourth quarters and are optimistic our relationships with these new
customers will continue to grow."
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 continuing support from our larger customers, our
expectations and beliefs with respect to future financial and operating
results, and our ability to continue to implement our strategic plans and
develop and increase sales to new 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: 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)
(Unaudited)
September 30, June 30,
2005 2005
------------ ------------
ASSETS
Cash and cash equivalents $5,585 $1,916
Accounts receivable, net 5,929 10,834
Inventories, net 14,079 12,987
Deferred income taxes 451 421
Other current assets 1,120 1,012
------------ ------------
Total current assets 27,164 27,170
Property and equipment, net 15,913 16,507
Deferred income taxes 276 276
Other assets 185 185
------------ ------------
Total Assets $43,538 $44,138
------------ ------------
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $11,836 $12,772
Long-term debt, less current installments 2,772 2,979
Deferred rent 1,266 1,264
Long-term pension liability 221 206
------------ ------------
Total Liabilities 16,095 17,221
------------ ------------
Stockholders' Equity 27,443 26,917
------------ ------------
Total Liabilities and Stockholders' Equity $43,538 $44,138
------------ ------------
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
(Unaudited)
Three months ended
September 30,
--------------------------
2005 2004
------------ ------------
NET SALES $21,733 $22,727
Cost of goods sold 17,677 17,409
------------ ------------
Gross profit 4,056 5,318
Selling, general & administrative expenses 3,378 3,924
------------ ------------
INCOME FROM OPERATIONS 678 1,394
Other expense, net 27 50
------------ ------------
INCOME BEFORE INCOME TAXES 651 1,344
Provision for income taxes 239 492
------------ ------------
NET INCOME $412 $852
------------ ------------
NET INCOME PER COMMON SHARE:
Basic $0.07 $0.14
------------ ------------
Diluted $0.06 $0.13
------------ ------------
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic shares 6,013,390 5,923,766
------------ ------------
Diluted shares 6,469,104 6,447,677
------------ ------------
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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