SAN MARCOS, Calif., May 10, 2016 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $3.0 million, or $0.46 per diluted share, on net sales of $30.0 million for the quarter ended March 31, 2016.  Quarterly results were favorably impacted by the sale of our domestic corporate headquarters in San Marcos, CA, that resulted in a one-time gain on the sale, net of tax, equal to $1.0 million, or $0.15 per diluted share.  Excluding this transaction, our net income from recurring business during the third quarter of fiscal 2016 was $2.0 million, or $0.31 per diluted share.

Net sales during the three months ended March 31, 2016 increased $10.4 million, or 53.0%, from $19.6 million recorded in the same period last year.  Private label contract manufacturing sales increased $7.2 million, or 41.4%, from the same quarter last year, due primarily to increased volumes of existing products and new product sales to new and existing customers partially offset by unfavorable foreign exchange rates. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 140.7% to $5.5 million during the third quarter of fiscal 2016 as compared to $2.3 million for the third quarter of fiscal 2015.  The increase in CarnoSyn® beta-alanine revenue was primarily due to an increase in raw material sales as a result of taking over the direct sale and distribution of CarnoSyn® beta-alanine effective April 1, 2015. 

Net sales during the nine months ended March 31, 2016 increased 37.9% to $78.5 million from $56.9 million recorded in the same period last year.  For the nine months ended March 31, 2016, private label contract manufacturing sales increased $10.9 million, or 21.1%, from the same period last year, due primarily to increased volumes of existing products and new product sales to new and existing customers partially offset by unfavorable foreign exchange rates. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 242.4% to $16.1 million during the first nine months of fiscal 2016 as compared to $4.7 million for the same period in fiscal 2015.  The increase in CarnoSyn® beta-alanine revenue in the first nine months of fiscal 2016 was primarily due to an increase in raw material sales as a result of taking over the direct sale and distribution of CarnoSyn® beta-alanine effective April 1, 2015.  Our branded products sales declined to zero in the first nine months of fiscal 2016 as compared to $698,000 for the same period in fiscal 2015 due to the discontinuation of the product line effective December 31, 2014.

Net income in the first nine months of fiscal 2016 was $6.1 million, or $0.92 per diluted share, compared to net income of $2.4 million, or $0.35 per diluted share, in the same period of fiscal 2015. Our year-to-date results were favorably impacted by the sale of our domestic corporate headquarters in San Marcos, CA, that resulted in a one-time gain on the sale, net of tax, equal to $1.0 million, or $0.15 per diluted share.  Excluding this transaction, our net income from recurring business during the first nine months of fiscal 2016 was $5.1 million, or $0.77 per diluted share.  This increase was primarily attributable to improved operational throughput and lower per unit manufacturing costs partially offset by lower average Euro exchange rates related to our private label contract manufacturing segment, and increased CarnoSyn® beta-alanine revenue.

As of March 31, 2016, NAI had cash of $16.3 million and working capital of $36.5 million compared to $18.6 million and $34.5 million, respectively, as of June 30, 2015.  As of March 31, 2016, we had $10.5 million available under our line of credit agreements.

Mark A. Le Doux, Chairman and Chief Executive Officer stated, "Our Q3 and year to date results represent a culmination of focused customer support on existing and new product launches as well as effective operational execution by our various operating divisions.  Higher capacity utilization resulted in greater efficiencies in overhead absorption and economies of scale demonstrating improvements in our operations while maintaining our debt-free balance sheet.

"NAIE's plant expansion is almost complete, and throughput should start in the first quarter of fiscal 2017, commencing July 1, 2016.  We continue to see new future demand opportunities from Asia, Europe, North America and Australia. 

"With the cessation of the majority of litigation surrounding our CarnoSyn® patent estate and the execution of appropriate license agreements between the parties, we can focus on our continued investment in research, and further expanding and enforcing our patents and trademarks, as we seek to enlarge our footprint in various commercial areas where CarnoSyn® has demonstrated excellent outcomes for health."

Mr. LeDoux also stated that, "In the coming months NAI will be moving its corporate headquarters to a recently purchased and fully paid for facility in Carlsbad California."

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 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 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.