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Highlights
- First quarter fiscal 2008 revenue of $25.5 million, an increase of
$360,000, or 1.4%, from $25.2 million in the same quarter last year.
- First quarter fiscal 2008 net income of $423,000, an increase of
$36,000, or 9%, from $387,000 in the same quarter last year.
SAN MARCOS, Calif., Nov. 14 /PRNewswire-FirstCall/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced revenue of $25.5 million and net income of $423,000 or $0.06 per diluted share for the three months ended September 30, 2007.
Revenue of $25.5 million in the first quarter of fiscal 2008 represented an increase of $360,000 from the same quarter last year. The increase was primarily due to a $848,000, or 4%, increase in private label contract manufacturing sales partially offset by a $488,000, or 12%, decrease in branded products sales.
Net income in the first quarter of fiscal 2008 increased to $423,000 or $0.06 per diluted share from $387,000 or $0.05 per diluted share in the comparable quarter last year. Income from operations in the first quarter of fiscal 2008 decreased to $670,000 from $832,000 in the comparable quarter last year.
Cash flows used in operating activities for the three months ended September 30, 2007 were $578,000. As of September 30, 2007, NAI had cash and working capital of $3.2 million and $16.6 million, respectively, compared to $4.9 million and $16.2 million, respectively, as of June 30, 2007. As of September 30, 2007, we had $8.2 million available under our working capital line of credit.
CEO Mark LeDoux stated, "We are generally pleased with our financial results for the first quarter and are also pleased with the progress we have made in new business development. The investments we have made in our facility along with our TGA certification are being well received by potential customers both internationally and domestically. Our Dr. Cherry Pathway to Healing(R) product line continued to be negatively impacted by the cessation of Dr. Cherry's weekly television program. We intend to continue working with Dr. Cherry to evaluate alternative marketing programs and revise marketing plans to replace the weekly television program."
President Randell Weaver commented, "Looking forward, we expect reduced net sales of approximately $3 million to $5 million, in the aggregate, in both private label contract manufacturing and branded products in the second quarter of fiscal 2008, as compared to the second quarter in fiscal 2007. The anticipated reduction in second quarter revenues is primarily attributable to a single contract manufacturing customer. We are in discussions with several potential new private label contract manufacturing customers and expect to begin shipments to at least some of these customers in the second half of fiscal 2008."
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 future financial and operating results, including the amount of our future net sales and profits, our ability to develop, maintain or increase sales to new and existing customers and to support the Dr. Cherry product line, and the timing of shipments to potential new customers. 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.
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
September 30, June 30,
2007 2007
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ASSETS
Cash and cash equivalents $3,240 $4,876
Accounts receivable, net 6,799 5,264
Inventories, net 13,845 14,099
Deferred income taxes 1,441 1,441
Other current assets 1,542 2,204
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Total current assets 26,867 27,884
Property and equipment, net 14,565 15,059
Goodwill and purchased intangibles, net 4,204 4,268
Other assets 169 169
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Total Assets $45,805 $47,380
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $10,253 $11,668
Long-term debt, less current
installments 2,407 2,756
Deferred income taxes 1,620 1,620
Deferred rent 1,222 1,238
Long-term pension liability 88 76
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Total Liabilities 15,590 17,358
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Stockholders' Equity 30,215 30,022
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Total Liabilities and Stockholders' Equity $45,805 $47,380
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NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
(Unaudited)
Three Months Ended
September 30,
-------------------------
2007 2006
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NET SALES $25,521 $25,161
Cost of goods sold 20,226 19,646
------------ -----------
Gross profit 5,295 5,515
Selling, general & administrative
expenses 4,625 4,683
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INCOME FROM OPERATIONS 670 832
Other expense, net 29 230
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INCOME BEFORE INCOME TAXES 641 602
Provision for income taxes 218 215
------------ -----------
NET INCOME $423 $387
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NET INCOME PER COMMON SHARE:
Basic $0.06 $0.06
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Diluted $0.06 $0.05
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic 6,914,114 6,720,167
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Diluted 7,021,691 7,200,944
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SOURCE Natural Alternatives International, Inc.
CONTACT: Randell L. Weaver, President of Natural Alternatives
International, Inc., +1-760-736-7700, investor@nai-online.com/
Web site: http://www.nai-online.com /