CARLSBAD, Calif., Feb. 9, 2021 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $3.6 million, or $0.57 per diluted share, on net sales of $48.1 million for the second quarter of fiscal year 2021 ended December 31, 2020 compared to net income of $0.5 million, or $0.07 per diluted share, in the second quarter of the prior fiscal year. 

Net sales during the three months ended December 31, 2020 increased $19.0 million, or 65.2%, from $29.1 million recorded in the comparable prior year period.  During the same period, private-label contract manufacturing sales increased $20.5 million, or 82.5%, from the comparable quarter last year. Private-label contract manufacturing sales increased for a majority of our distribution channels worldwide primarily due to increased shipments of existing products and sales of newly awarded products.  CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 35.5% to $2.8 million during the second quarter of fiscal 2021, as compared to $4.3 million for the second quarter of fiscal 2020.  CarnoSyn® sales have been negatively impacted due to continued competition from generic forms of beta-alanine and the impact the COVID-19 pandemic has had on the sports nutrition industry with limitations on athletic activities, including gyms.

Net income for the six months ended December 31, 2020 was $5.9 million, or $0.91 per diluted share, compared to net income of $0.6 million, or $0.08 per diluted share, for the six months ended December 31, 2019.

Net sales during the six months ended December 31, 2020 increased $29.5 million, or 50.6%, from $58.3 million recorded in the comparable prior year period.  For the six months ended December 31, 2020, private-label contract manufacturing sales increased $31.5 million, or 62.0%, from the comparable period last year. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 27.1% to $5.4 million during the first six months of fiscal 2021, as compared to $7.5 million for first six months of fiscal 2020. 

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

As of December 31, 2020, we had cash of $28.6 million and working capital of $50.7 million compared to $30.5 million and $51.2 million, respectively, as of June 30, 2020.  As of December 31, 2020, we owed $10.0 million on our line of credit.  This amount was fully repaid February 2, 2021.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, "Our second quarter sales set another new record for sales and profitability, and we continue to have a strong pipeline of orders for delivery in the coming months.  The first six months of revenue and profits in this current fiscal year are a testament to the hard work and dedication of all of our team members both in the USA and in Switzerland."

"The continued strength of our sales and order pipeline are consistent with trends we are seeing in the dietary supplement market and point towards the fact consumers are more aware than ever they need to take an active role in their health and wellness and they recognize dietary supplements are an important component of their daily regimen."

"We continue to seek additional growth opportunities both organic and strategic and we believe we are well positioned to take advantage of such opportunities based on our strong working capital position, available capacity, and stellar reputation for excellence within our industry."

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,  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 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.