Natural Alternatives International, Inc. Announces Fiscal 2016 Q1 Results

SAN MARCOS, Calif., Nov. 12, 2015 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $1.2 million or $0.18 per diluted share on net sales of $21.6 million for the quarter ended September 30, 2015.

Net sales during the three months ended September 30, 2015 increased $2.9 million or 15.5% from $18.7 million recorded in the comparable prior year period.  For the quarter ended September 30, 2015, private label contract manufacturing sales decreased $1.2 million or 6.9% from the comparable quarter last year due primarily to timing of shipments of new and existing products and unfavorable foreign exchange rates. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 453.6% to $5.3 million during the first quarter of fiscal 2016 as compared to $961,000 for the first quarter of fiscal 2015.  The increase in CarnoSyn® beta-alanine revenue was primarily due to the increase in raw material sales as a result of taking over the direct sale and distribution of CarnoSyn® beta-alanine effective April 1, 2015.  Our branded products sales declined to zero in the first quarter of fiscal 2016 as compared to $269,000 for the first quarter of fiscal 2015 due to the discontinuation of this product line effective December 31, 2014.

Net income in the first quarter of fiscal 2016 was $1.2 million or $0.18 per diluted share compared to net income of $487,000 or $0.07 per diluted share in the first quarter of fiscal 2015. This increase was primarily attributable to improved operational throughput and lower per unit manufacturing costs partially offset by lower average Euro exchange rates related to our private label contract manufacturing segment, and increased CarnoSyn® beta-alanine revenue as a result of our directly taking over the raw material sales and licensing  activities effective April 1, 2015.

As of September 30, 2015, NAI had cash of $16.4 million and working capital of $36.3 million compared to $18.6 million and $34.5 million, respectively, as of June 30, 2015.  As of September 30, 2015, we had $5.5 million available under our line of credit agreements.

Mark A. Le Doux, Chairman and Chief Executive Officer stated, "We experienced increased profitability for the quarter by achieving more facility utilization, thereby absorbing more fixed overhead, as well as taking over the raw material sales and the licensing of our patented CarnoSyn® beta-alanine.  We anticipate future growth in several categories of our business units, and we are continuing expansion of our facilities in Switzerland in anticipation of higher demand from multi-national clientele.

"Our sales product mix improved as well and our gross margin improved primarily as a result of the increased sales of CarnoSyn®.  We are very pleased with these results in spite of the challenges presented by negative currency translation impact, where on a year over year basis the Euro dropped over 18%."

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 revenue profits and 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 – Michael Fortin, 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.

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