CARLSBAD, Calif., Sept. 19, 2016 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $9.5 million, or $1.44 per diluted share, on net sales of $114.2 million for the fiscal year ended June 30, 2016.  Fiscal 2016 results were favorably impacted by the sale of our domestic corporate headquarters in San Marcos, CA during the third quarter 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 fiscal 2016 was $8.5 million, or $1.29 per diluted share.

Fiscal 2016 net sales from private-label contract manufacturing activities increased $22.8 million, or 32.7%, from the prior year, due primarily to the sale of higher volumes of existing products to existing customers and new product sales to new and existing customers, partially offset by unfavorable foreign exchange rates as compared to the prior year. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 138.3% to $21.8 million during fiscal 2016 as compared to $9.1 million for fiscal 2015.  The increase in CarnoSyn® beta-alanine revenue in 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 fiscal 2016 as compared to $698,000 for fiscal 2015 due to the discontinuation of the product line effective December 31, 2014.

Net sales during the three months ended June 30, 2016 increased 58.1% to $35.7 million from $22.6 million recorded in the same period last year.  Private label contract manufacturing sales increased $11.9 million, or 65.5%, from the same quarter last year, due primarily to the sale of higher volumes of existing products to existing customers and new product sales to new and existing customers, partially offset by unfavorable foreign exchange rates as compared to the same period last year. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 27.6% to $5.7 million during the fourth quarter of fiscal 2016 as compared to $4.4 million for the fourth quarter of fiscal 2015.  The increase in CarnoSyn® beta-alanine revenue was primarily due to an increase in raw material sales to new and existing customers.

Net income during the quarter ended June 30, 2016 was $3.4 million, or $0.52 per diluted share, compared to net income of $1.0 million, or $0.15 per diluted share, in fiscal 2015.  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 June 30, 2016, NAI had cash of $19.7 million and working capital of $36.7 million compared to $18.6 million and $34.5 million, respectively, as of June 30, 2015.  As of June 30, 2016, we had $10.5 million available under our line of credit agreements.

Mark A. Le Doux, Chairman and Chief Executive Officer stated, "Fiscal year 2016 will go down as a landmark year for the company in sales and earnings per share.  On a quarterly basis, the fourth quarter also generated considerable growth in EPS.  This result was achieved through the hard work of many team members of the company.  We remain debt-free with a strong balance sheet and continue to seek ways of expanding our presence in the international marketplace and leading by example.

"We recently completed an expansion of our state of the art facilities in Lugano, Switzerland, increasing our capacity to produce powdered supplement products and solid dose forms.  We continue to invest in essential research, and we are undertaking expansion of our solid dose coating systems in California and have also recently increased our encapsulation capacity there.

"In August we were audited once again by the Therapeutic Goods Administration of Australia, and the recommendation from the TGA is for another three-year extension or 20 consecutive years of TGA certification.  As signators to the Pharmaceutical Inspection Co-operation Scheme, this certification opens the door for us to fast-track registration of products in over 48 countries around the world."

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, our future revenue profits and financial condition, and our ability to develop, maintain or increase sales to new and existing 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.

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.