Natural Alternatives International, Inc. Announces Fiscal 2014 Results

SAN MARCOS, Calif., Sept. 25, 2014 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $2.0 million, or $0.29 per diluted share, on net sales of $73.9 million for the fiscal year ended June 30, 2014. 

Fiscal 2014 net sales from contract manufacturing activities increased $10.7 million or 18.8% as compared to the prior fiscal year due primarily to higher sales volumes of existing products in existing markets and new product sales to new customers. These increases were partially offset by lower average sales prices for a portion of our higher volume products and lower average EUR exchange rates. Royalty and licensing income related to license agreements for the use of our CarnoSyn® beta-alanine related patents and trademarks increased 13.4% to $5.4 million during fiscal 2014 as compared to $4.8 million for fiscal 2013. Net sales from our branded products declined 12.6% to $1.2 million during fiscal 2014 as compared to $1.3 million in the prior fiscal year.

We have historically developed, manufactured and marketed our own branded products under the Pathway to Healing® product line. Due to the steady decline in sales of this product line over the past several years we elected to discontinue this business during the fourth quarter of fiscal 2014. This decision resulted in an inventory write-down charge totaling $320,000 which was included in our fourth quarter operating results. We anticipate that all termination activities related to the cessation of our branded business will be completed by the end of our second quarter of fiscal 2015. 

Net income for fiscal 2014 was $2.0 million, or $0.29 per diluted share, as compared to net income of $1.6 million for fiscal 2013, or $0.23 per diluted share.

Net sales for the fourth quarter ended June 30, 2014 increased to $21.2 million or 26% as compared to $16.8 million for the prior year period. The increase in net sales during the fourth quarter was primarily related to higher sales volumes of existing products in existing markets and new product sales to new customers. Net income in the fourth quarter of fiscal 2014 was $1.1 million or $0.16 per diluted share, as compared to net income of $593,000 or $0.09 per diluted share in the fourth quarter of fiscal 2013.

As of June 30, 2014, NAI had cash and cash equivalents of $19.5 million and working capital of $31.3 million compared to $16.7 million and $29.4 million, respectively, as of June 30, 2013. As of June 30, 2014, we had no debt outstanding and $5.6 million available under our working capital lines of credit.

Mark A. LeDoux, Chairman and Chief Executive Officer, stated, "We continue to focus on product integrity and quality, and to invest in our capacity to produce such products in the U.S. and abroad. We remain steadfast in our commitment to clients who are unwilling to forsake product integrity for short term savings.  We also continue to support appropriate enforcement by regulatory agencies worldwide to help rid the industry of poor manufacturing processes and fraudulent mislabeling.

"In the year ahead we will extend our active participation in the efforts of industry responsible organizations such as the Council for Responsible Nutrition and the Natural Products Association to influence various worldwide regulators including those involved with the Codex Alimentarius Commission and their efforts to improve international standards and allow for greater access to properly made nutritional supplements."

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 future financial and operating results, including the amount of our future revenue and profits and our future financial condition, our ability to maintain our patents, generate revenues from the commercialization of our patents and trademarks, secure compliance with our intellectual property rights, 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.

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.