CARLSBAD, Calif,, Nov. 10, 2020 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $2.3 million, or $0.35 per diluted share, on net sales of $39.7 million for the first quarter of fiscal year 2021 ended September 30, 2020 compared to net income of $0.01 million, or $0.01 per diluted share, in the first quarter of our prior fiscal year.  Net income during the first quarter of fiscal 2021 also included a discrete tax benefit of $0.9 million.

Net sales during the three months ended September 30, 2020 increased $10.5 million, or 36.1%, from $29.2 million recorded in the comparable prior year period.  During the same period, private-label contract manufacturing sales increased $11.0 million, or 42.4%, from the comparable quarter last year. Private-label contract manufacturing sales increased primarily due to higher sales to our largest customer including increased shipments of existing products and sales of a newly awarded product, as well as sales of new products to other new and existing customers, partially offset by a reduction due to a discontinued customer relationship.  A significant portion of these sales were related to higher sales of immune and wellness products sold by our customers during the COVID-19 pandemic.  We currently believe this sales trend will continue for at least the remainder of our fiscal 2021 year.  CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 15.9% to $2.7 million during the first quarter of fiscal 2021, as compared to $3.2 million for the first quarter of fiscal 2020.

Based on our current sales order volumes and future period sales forecasts we have received from our customers, we expect our annualized fiscal 2021 net sales to increase between 30% to 50% as compared to fiscal 2020.  We also expect to generate operating income between 5% to 7% of net sales for our fiscal year ending June 30, 2021. 

As of September 30, 2020, NAI had cash and cash equivalents of $27.4 million and working capital of $49.3 million compared to $30.5 million and $51.2 million, respectively, as of June 30, 2020.  As of September 30, 2020, we owed $10.0 million under our line of credit facility.

Mark A. LeDoux, Chairman and Chief Executive Officer stated, "Our first quarter sales set a new watermark for sales and production activity and we have an unprecedented pipeline of orders for delivery in the coming months.  We, like many others in our industry, are experiencing an increase in activity as the global population appears to realize they need to take an active role in their health and wellness, which includes the intake of dietary supplements."

"While nobody can predict when the pandemic will ultimately subside, we believe the pandemic has increased consumer awareness of their health and wellness, a trend that we believe will benefit us going forward."

"We believe our strong working capital position, available capacity, and reputation have positioned us for this growth opportunity.  We also remain committed to buying back our shares anytime we believe it is in our stockholders' long-term best interest, while continuing to be cautious about our liquidity and the unknown impact of the current health crisis."

NAI, headquartered in Carlsbad, 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, the impact of COVID-19 and our ability to remain operational, our future revenue profits and financial condition, our ability to introduce products in new sales channels, 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 that 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 investor@nai-online.com.

Web site: http://www.nai-online.com

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SOURCE Natural Alternatives International, Inc.