SAN MARCOS, Calif., May 14, 2013 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $178,000 or $0.03 per diluted share on net sales of $15.8 million for the quarter ended March 31, 2013. 

Net sales for the three months ended March 31, 2013 decreased $1.6 million or 9.1% from $17.4 million recorded in the comparable prior year period.  For the quarter ended March 31, 2013, contract manufacturing sales decreased $438,000 or 2.9% from the comparable quarter last year due primarily to lower sales to existing customers, lower average sales prices for a portion of our higher volume products and lower average EUR exchange rates. Patent and trademark licensing revenue decreased 51.8% to $1.0 million during the quarter ended March 31, 2013 as compared to $2.1 million for the prior year period. This decrease resulted from lower patent licensing fee payments totaling $654,000 along with a reduction in beta-alanine raw material sales totaling $418,000. This licensing revenue was generated from our patent estate pursuant to license and supply agreements with third parties for the use and distribution of the ingredient known as beta-alanine sold under our CarnoSyn® trade name.  Our branded products sales totaled $321,000 for the third quarter of fiscal 2013 as compared to $387,000 for the comparable prior year period.

Net sales for the nine months ended March 31, 2013 decreased to $46.0 million or 11.5% from $51.9 million recorded in the comparable prior year period.  Contract manufacturing sales during the first nine months of fiscal 2013 decreased $4.8 million or 10.3% from the comparable prior year period and patent and trademark licensing revenue decreased 22.7% or $939,000 during this same period. Our branded products sales decreased $191,000 or 16.0% for the first nine months of fiscal 2013.

Net income for the first nine months of fiscal 2013 totaled $977,000 or $0.14 per diluted share compared to net income of $3.4 million or $0.48 per diluted share in the comparable prior year period. The decrease was primarily attributable to lower contract manufacturing sales and patent and trademark licensing revenue, increased raw material and manufacturing production costs, unfavorable foreign currency exchange rates and increased patent and prosecution expenses which totaled $1.8 million for the first nine months of fiscal 2013.

As of March 31, 2013, we had cash of $14.6 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 March 31, 2013, we had $5.5 million available under our line of credit agreements.

"As anticipated, the quarter ended March 31, 2013 experienced various headwinds, but I am gratified we achieved a profit for the quarter in spite of these factors," noted Chairman and Chief Executive Officer Mark A. Le Doux. "As the Food and Drug Administration continues in its efforts to point out significant failings in compliance of the Good Manufacturing Practices with others in our industry, we continue to receive inquiries from a variety of potential customers who wish to protect their brand reputations by upgrading their supply chain relationships through a partnership with NAI.

"During the current quarter we have begun to see traction building with certain client initiatives which we believe should result in increased orders in future periods.  While we continue to support research in the uses for CarnoSyn® beta-alanine and at the same time actively pursue infringers, we are seeing continued growth in the adoption of CarnoSyn® beta-alanine in more and more product offerings."

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, including the amount of our future revenue and profits and our future financial condition, market acceptance and media attention towards our CarnoSyn® beta-alanine, our ability to expand our domestic and international contract manufacturing business and patent estate, comply with Good Manufacturing Practices and other applicable regulations and standards, improve stockholder value, remain debt free, develop, maintain or increase sales to new and existing customers, and successfully maintain and enforce our intellectual property rights, 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 investor@nai-online.com.

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

SOURCE Natural Alternatives International, Inc.