Natural Alternatives International, Inc. Announces Fiscal 2012 Q1 Results

SAN MARCOS, Calif., Nov. 14, 2011 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $1.5 million or $0.22 per diluted share on net sales of $18.3 million for the quarter ended September 30, 2011.

Net sales during the three months ended September 30, 2011 increased $5.0 million or 37.3% from $13.4 million recorded in the comparable prior year period.  For the quarter ended September 30, 2011, contract manufacturing sales increased $4.1 million or 32.4% from the comparable quarter last year due primarily to higher sales to new and existing customers. Patent and trademark licensing revenue increased to $1.3 million or 322% during the first quarter of fiscal 2012 as compared to $316,000 for the comparable prior year period. This licensing revenue was derived through the sale of the ingredient known as beta-alanine sold under our CarnoSyn® trademark and resulted from increased popularity of beta-alanine as a sports nutrition supplement and through expanded licensing distribution. The increases in manufacturing and licensing revenues were partially offset by a decline in our branded products sales, which totaled $401,000 for the first quarter of fiscal 2012 as compared to $492,000 for the comparable prior year period.

Our revenue concentration risk for our two largest customers decreased to 69% as a percentage of our total sales for the first three months of fiscal 2012 compared to 71% in the first three months of fiscal 2011.

Net income in the first quarter of fiscal 2012 was $1.5 million or $0.22 per diluted share compared to net income of $912,000 or $0.13 per diluted share in the first quarter of fiscal 2011. The increase was primarily attributable to higher sales and patent and trademark licensing revenue, along with a reduction in per unit manufacturing costs associated with the increased sales volume.

As of September 30, 2011, NAI had cash of $13.6 million and working capital of $25.2 million compared to $15.5 million and $22.9 million, respectively, as of June 30, 2011.  As of September 30, 2011, we had $5.7 million available under our line of credit agreements.

Mark A. LeDoux, NAI Chairman and Chief Executive Officer, commented, "The first quarter of this fiscal year has demonstrated the power of focus and execution, coupled with improvement in product requirements by our current customers.  We believe our customers engaged in direct sales to consumers are experiencing some measure of growth as a result of improved economic conditions in their distribution channels.  By managing our fixed costs, expanding market presence with intellectual property unique to NAI, and executing on our corporate business plan, we are starting to see significant benefits to both the top line and more importantly the bottom line of our business.  We continue to work hard as an international team to focus on exceeding our customers' expectations, while delivering excellent value to our esteemed clients."

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 future financial and operating results, including the amount of our future revenue and profits and our future financial condition, our ability to expand our contract manufacturing business, including the amount of growth with respect to our customers engaged in direct sales to consumers, manage our fixed costs, expand our market presence, protect our intellectual property and trademark rights and the costs of doing so, execute our business plan, and develop, maintain or increase sales to new and existing customers, as well as future economic conditions and the impact of such conditions on our business. 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 Operating and Chief Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or [email protected].
Web site: http://www.nai-online.com

SOURCE Natural Alternatives International, Inc.