Natural Alternatives International, Inc. Announces Fiscal 2013 Q1 Results

SAN MARCOS, Calif., Nov. 14, 2012 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $697,000 or $0.10 per diluted share on net sales of $16.5 million for the quarter ended September 30, 2012.

Net sales during the three months ended September 30, 2012 decreased $1.8 million or 10.3% from $18.3 million recorded in the comparable prior year period.  For the quarter ended September 30, 2012, private label contract manufacturing sales decreased $1.9 million or 11.2% from the comparable quarter last year due primarily to lower sales to our two largest customers and unfavorable foreign currency exchange rates which generated lower average sales prices during the current year period. Patent and trademark licensing revenue increased to $1.4 million or 3.0% during the first quarter of fiscal 2013 as compared to $1.3 million for the comparable prior year period. Our branded products sales totaled $342,000 for the first quarter of fiscal 2013 as compared to $401,000 for the comparable prior year period.

Our revenue concentration risk for our two largest customers decreased to 72% as a percentage of our total private label contract manufacturing sales for the first three months of fiscal 2013 compared to 77% in the first three months of fiscal 2012.

Net income in the first quarter of fiscal 2013 was $697,000 or $0.10 per diluted share compared to net income of $1.5 million or $0.22 per diluted share in the first quarter of fiscal 2012. The decrease was primarily attributable to lower consolidated sales, increased manufacturing costs associated with lower units of production and increased legal expenses related to our beta-alanine patent estate.

As of September 30, 2012, NAI had cash of $14.4 million and working capital of $28.6 million compared to $14.5 million and $27.7 million, respectively, as of June 30, 2012.  As of September 30, 2012, we had $5.5 million available under our line of credit agreements.

Mark A. Le Doux, Chairman and Chief Executive Officer, noted, "NAI continues to demonstrate leadership in dietary supplement research, intellectual property, and manufacturing of supplements. Recently the United States Patent Office has provided a notice of allowance for one of our latest patent applications in the field of timed-release beta-alanine. Timed-released beta-alanine is now available from Natural Alternatives International in the form of SR CarnoSyn® 800 milligram tablets.  With research demonstrating the added value of this dosage form, we are actively promoting this remarkable product in various channels of commerce. In addition to this new patent allowance in the U.S., we have secured similar responses from patent agencies in Canada and South Korea.  In addition, we have additional patent applications pending globally.  While NAI experienced a reduction in contract manufacturing requirements from its clients in this quarter, we are seeing signs of additional opportunities on the horizon and are planning to generate additional revenues while expanding our client base globally."   

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, revenue, profits and financial condition, our ability to expand our contract manufacturing business, contain our fixed costs, expand our market presence, protect our intellectual property and manage the costs thereof, our ability to 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.