SAN MARCOS, Calif., Oct. 25 /PRNewswire-FirstCall/ -- Natural Alternatives
International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator and
manufacturer of customized nutritional supplements, today announced net income
of $852,000 or $0.13 per diluted share on net sales of $22.7 million for the
three months ended September 30, 2004.
First quarter net sales increased 36% to $22.7 million from $16.7 million
for the comparable quarter last year. Net sales growth resulted in part from
a 50% increase in private label contract manufacturing sales. Income from
operations increased by 121% to $1.4 million from $630,000 in the comparable
quarter last year. Net income increased to $852,000 or $0.13 per diluted
share from $567,000 or $0.09 per diluted share for the comparable quarter last
year.
As of September 30, 2004, NAI had cash and working capital of
approximately $3.2 million and $16.3 million, respectively, compared to
$7.5 million and $17.5 million, respectively, at June 30, 2004. First quarter
cash used in operating activities was $1.6 million principally due to
compensation payments of $1.6 million under our fiscal 2004 Management
Incentive Plan resulting from our growth in earnings in 2004. Additionally,
first quarter capital expenditures of $2.6 million resulted from our
investment in the expansion of our Vista, California facility and acquisition
of additional manufacturing equipment to expand production capacity. We
funded our capital expenditures from available cash on hand. As of
September 30, 2004 we had $7.6 million available under our working capital
line of credit.
"We begin our 25th year building upon the remarkable financial performance
of fiscal 2004. First quarter income from operations improved 16% over the
fourth quarter of fiscal 2004," stated CEO Mark Le Doux. "Our first quarter
net sales were in line with our growth plans for fiscal 2005. Building on our
reputation of quality products and turnkey services, we are beginning to see
brand preference develop in our contract manufacturing business. We look to
increase our net sales and expand our customer base, while serving the needs
of our valued primary customers who contribute to the foundation of our
sustainable growth plans."
President Randell Weaver commented, "Growth like we experienced in fiscal
2004 requires investment in expansion. We look forward to consolidating our
manufacturing activities into our new manufacturing space in our fiscal third
quarter. We believe our Vista, California expansion into an additional 46,000
square-foot production facility will meet increased demand and further
streamline our manufacturing capabilities. We are pleased that capital
expenditures, working capital, total debt and cash used in operations were in
line with our growth plans for fiscal 2005."
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, our expectations and beliefs with respect to future financial and
operating results and our ability to continue to improve profitability,
maintain adequate financing, improve liquidity, maintain revenue growth,
complete the expansion of our manufacturing facilities and implement our
strategic plans. We wish 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. 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.
For further information, please contact John R. Reaves, Chief Financial
Officer of Natural Alternatives International, Inc., +1-760-736-7700,
investor@nai-online.com.
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, June 30,
2004 2004
------------ ----------
(Unaudited)
ASSETS
Cash and cash equivalents $3,204 $7,495
Accounts receivable, net 9,394 8,889
Inventories, net 13,882 12,863
Deferred income taxes 951 1,010
Other current assets 1,199 633
------------ ----------
Total current assets 28,630 30,890
Property and equipment, net 13,334 11,380
Other assets 185 198
------------ ----------
Total Assets $42,149 $42,468
============ ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $12,363 $13,422
Long-term debt, less current installments 3,632 3,841
Deferred income taxes 717 717
Deferred rent 256 220
Long-term pension liability 146 140
------------ ----------
Total Liabilities 17,114 18,340
------------ ----------
Stockholders' Equity 25,035 24,128
------------ ----------
Total Liabilities and Stockholders' Equity $42,149 $42,468
============ ==========
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Three months ended
September 30,
-------------------------
2004 2003
------------ ----------
(Unaudited)
NET SALES $22,727 $16,721
Cost of goods sold 17,409 12,575
------------ ----------
Gross profit 5,318 4,146
Selling, general & administrative expenses 3,924 3,516
------------ ----------
INCOME FROM OPERATIONS 1,394 630
Other expense, net 50 41
------------ ----------
INCOME BEFORE INCOME TAXES 1,344 589
Provision for income taxes 492 22
------------ ----------
NET INCOME $852 $567
============ ==========
NET INCOME PER COMMON SHARE:
Basic $0.14 $0.10
============ ==========
Diluted $0.13 $0.09
============ ==========
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic shares 5,923,766 5,820,709
============ ==========
Diluted shares 6,447,677 6,106,834
============ ==========
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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