SAN MARCOS, Calif., Feb. 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 $1.1 million or $0.16 per diluted share on net sales of $18.6 million for the quarter ended December 31, 2014.

Net sales during the three months ended December 31, 2014 increased $2.1 million or 13.0% from $16.5 million recorded in the comparable prior year period. For the quarter ended December 31, 2014, private label contract manufacturing sales increased $1.7 million or 11.2% from the comparable quarter last year due primarily to higher sales of existing products and new customer product sales. Patent and trademark licensing revenue increased 26.5% to $1.5 million during the second quarter of fiscal 2015 as compared to $1.2 million for the comparable prior year period. This increase related primarily to the timing of current year shipments to various customers as compared to the prior year period.  Our branded products sales totaled $428,000 for the second quarter of fiscal 2015 as compared to $278,000 for the comparable prior year period. As previously reported, we elected to discontinue our Pathway to Healing® branded product line and all termination activities were substantially completed as of December 31, 2014.

Net sales for the six months ended December 31, 2014 increased 11.0% to $37.3 million from $33.6 million recorded in the comparable prior year period. Contract manufacturing sales during the first six months of fiscal 2015 increased $3.8 million or 12.6% from the comparable prior year period and patent and trademark licensing revenue decreased $252,000 or 9.4% during this same period. Our branded products sales increased $102,000 or 17.1% for the first six months of fiscal 2015.

Net income for the first six months of fiscal 2015 totaled $1.6 million or $0.23 per diluted share compared to net income of $282,000 or $0.04 per diluted share in the comparable prior year period. The increase in net income was primarily attributable to increased customer demand and a favorable international sales mix along with higher average EUR exchange rates which included the benefit of our currency hedging program. Our Patent litigation and prosecution expenses also declined to $524,000 for the first six months of fiscal 2015 as compared to $1.3 million for the comparable prior year period.

As of December 31, 2014, NAI had cash of $20.1 million and working capital of $33.9 million compared to $19.5 million and $31.3 million, respectively, as of June 30, 2014.  As of December 31, 2014, we had $5.5 million available under our line of credit agreements.

Mark A. Le Doux, Chairman and Chief Executive Officer stated, "The results for this quarter are superior to the year earlier largely due to a favorable mix of product sales during the first half of fiscal 2015.  While management is pleased with the operating results in the first half of the year, and especially in the quarter just ended,  we anticipate risks during the second half of our fiscal year associated with changing sales patterns initiated by our customers, currency translation challenges, conflicted consumer perceptions brought on by recent regulatory actions involving several mass market retailers and their suppliers, and ongoing efforts to further manage our CarnoSyn® licensing and sublicensing activities. We continue to invest in keeping our facilities state of the art on both continents, and providing our  customers with the levels of quality assurance unsurpassed in the industry."

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, revenue, profits and financial condition, our ability to expand our contract manufacturing business, contain our fixed costs, expand our market presence, protect our intellectual property and manage the costs thereof, our ability to execute our business plan, 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 – 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

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SOURCE Natural Alternatives International, Inc.