Highlights
- Third quarter fiscal 2008 revenue of $21.9 million versus $23.8 million
in the same quarter last year.
- On target to meet new FDA published GMP requirements for Dietary
Supplement Manufacturing Companies.
SAN MARCOS, Calif., May 13 /PRNewswire-FirstCall/ -- Natural
Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading
formulator, manufacturer and marketer of customized nutritional
supplements, today announced revenue of $21.9 million and a net loss of
$446,000 or $0.06 per share for the three months ended March 31, 2008.
Net sales of $21.9 million in the third quarter of fiscal 2008 declined
$1.9 million from the same quarter last year. The decrease included a $2.5
million decline in our domestic private label contract manufacturing sales
associated primarily with the continued softness in sales from one of our
largest customers, partially offset by a $1.0 million increase in our
international private label contract manufacturing business related to
higher sales volumes of established products to existing markets. Our
branded product sales declined $342,000 during the current quarter
primarily related to our Dr. Cherry Pathway to Healing (R) product line.
Gross profit totaled $4.1 million or 18.6% as compared to $5.4 million
or 22.7% during the prior year quarter. The decrease in gross profit as a
percentage of sales was primarily due to higher per unit private label
manufacturing costs associated with lower production levels, increased
product testing costs associated with new product offerings and system and
process validation costs related to improving our existing processes and
implementing newly required good manufacturing practices (GMPs).
For the fiscal 2008 third quarter we reported a net loss of $446,000,
or $0.06 per share, on 7.0 million weighted-average shares outstanding. For
the third quarter of fiscal 2007 we reported net income of $369,000, or
$0.05 per diluted share, on 7.2 million weighted-average shares
outstanding.
Cash flows from operating activities for the nine months ended March
31, 2008 were $1.7 million. As of March 31, 2008, NAI had cash and working
capital of $3.8 million and $16.6 million, respectively, compared to $4.9
million and $16.2 million, respectively, as of June 30, 2007. As of March
31, 2008, we had $7.5 million available under our working capital line of
credit.
President Randell Weaver stated, "Our third quarter results were
negatively affected by the continued softness in business from one of our
largest contract manufacturing clients and the slower than expected
increase in sales volumes from our new customers. During the third quarter
we also continued to experience decreased revenues from our branded
products business compared to the year ago quarter primarily due to lower
sales of the Dr. Cherry Pathway to Healing(R) product line. These decreases
along with the increased testing, documentation and validation expenses
associated with new product introductions and our ongoing GMP programs
negatively impacted our operating income. As we enter the fourth quarter,
we anticipate our contract manufacturing sales volume will improve as we
expect to deliver initial shipments to one of our new customers and sales
to one of our largest customers to trend towards historical sales levels
experienced in the comparable prior year period."
Chairman and Chief Executive Officer Mark LeDoux added, "Although the
cost of compliance is significant, we believe our unwavering commitment to
quality and our steadfast support of the FDA published GMPs makes us well
positioned to meet the higher standards of the new law."
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
and profits, our ability to meet the new FDA published GMPs, to continue to
implement our strategic plans, to expand and successfully market our
brands, and to develop, maintain or increase sales to new and existing
customers, and the timing of shipments to 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 - Kenneth Wolf, 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)
March 31, June 30,
2008 2007
(Unaudited)
ASSETS
Cash and cash equivalents $3,804 $4,876
Accounts receivable, net 4,773 5,264
Inventories, net 17,792 14,099
Deferred income taxes 1,441 1,441
Other current assets 3,103 2,204
Total current assets 30,913 27,884
Property and equipment, net 13,872 15,059
Goodwill and purchased intangibles, net 4,078 4,268
Other noncurrent assets, net 169 169
Total Assets $49,032 $47,380
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $14,325 $11,668
Long-term debt, less current portion 1,656 2,756
Deferred income taxes 1,620 1,620
Deferred rent 1,190 1,238
Long-term pension liability 113 76
Total Liabilities 18,904 17,358
Stockholders' Equity 30,128 30,022
Total Liabilities and Stockholders' Equity $49,032 $47,380
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF (LOSS) INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended Nine Months Ended
March 31, March 31,
2008 2007 2008 2007
NET SALES $21,929 100.0% $23,791 100.0% $67,858 100.0% $73,001 100.0%
Cost of goods
sold 17,856 81.4% 18,394 77.3% 54,239 79.9% 56,387 77.2%
Gross profit 4,073 18.6% 5,397 22.7% 13,619 20.1% 16,614 22.8%
Selling,
general &
administrative
expenses 5,019 22.9% 4,801 20.2% 14,168 20.9% 14,221 19.5%
(LOSS) INCOME
FROM OPERATIONS (946) -4.3% 596 2.5% (549) -0.8% 2,393 3.3%
Other income
(expense), net 153 0.7% (117) -0.5% 98 0.1% (466) -0.6%
(LOSS) INCOME
BEFORE INCOME
TAXES (793) -3.6% 479 2.0% (451) -0.7% 1,927 2.6%
(Benefit)
provision for
income taxes (347) 110 (248) 617
NET (LOSS)
INCOME ($446) -2.0% $369 1.6% ($203) -0.3% $1,310 1.8%
NET (LOSS)
INCOME PER
COMMON SHARE:
Basic ($0.06) $0.05 ($0.03) $0.19
Diluted ($0.06) $0.05 ($0.03) $0.18
WEIGHTED
AVERAGE COMMON
SHARES
OUTSTANDING:
Basic 7,014 6,885 6,969 6,815
Diluted 7,014 7,202 6,969 7,194
SOURCE Natural Alternatives International, Inc.
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Related links:
http://www.nai-online.com
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