CARLSBAD, Calif., Sept. 18, 2017 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $7.2 million, or $1.09 per diluted share, on net sales of $121.9 million for the fiscal year ended June 30, 2017.  

During fiscal 2017, our net sales were 7% higher than in fiscal 2016.  Fiscal 2017 net sales from private-label contract manufacturing activities increased $2.6 million, or 3%, 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 reductions in orders related to certain domestic and Asian customers. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 24% to $26.9 million during fiscal 2017 as compared to $21.8 million for fiscal 2016. 

Net income for fiscal 2017 was $7.2 million, or $1.09 per diluted share, compared to net income of $9.5 million, or $1.44 per diluted share, in fiscal 2016.  The comparable results in fiscal 2016 were favorably impacted by the sale of our domestic corporate headquarters in San Marcos, CA, resulting in a one-time gain on the sale, net of tax, equal to $1.0M, 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.  The decrease in net income was primarily attributable to increased litigation expenses incurred in connection with efforts to enforce compliance with our existing patents, fees and expenses related to new patent applications and to protect our trade name in the marketplace against parties who are using it without our consent, partially offset by favorable sales and foreign exchange activity. 

Net sales during the three months ended June 30, 2017 decreased 9.8% to $32.2 million from $35.7 million recorded in the same period last year.  Private-label contract manufacturing sales decreased $4.8 million, or 16.0%, from the same quarter last year. Beginning in the third quarter of fiscal 2017 our contract manufacturing sales were unfavorably impacted due to reductions in orders related to the Asian and European markets. Our international sales improved during our fourth quarter of fiscal 2017 and we expect this sales trend to continue during fiscal 2018, which includes our extended partnership with The Juice Plus+ Company that is expected to begin favorably impacting sales in the second quarter of fiscal 2018.  CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 22.8% to $6.9 million during the fourth quarter of fiscal 2017 as compared to $5.7 million for the fourth quarter of fiscal 2016.  The increase in CarnoSyn® beta-alanine revenue was primarily due to growth in our customer base and increased material shipments.

Net income during the quarter ended June 30, 2017 was $1.5 million, or $0.23 per diluted share, compared to net income of $3.4 million, or $0.52 per diluted share, in fiscal 2016.  This decrease was primarily attributable to decreased sales and increased litigation expenses incurred in connection with efforts to enforce compliance with our existing patents, fees and expenses related to new patent applications and to protect our trade name in the marketplace against parties who are using it without our consent. 

As of June 30, 2017, NAI had cash of $27.8 million and working capital of $41.4 million compared to $19.7 million and $36.7 million, respectively, as of June 30, 2016.  As of June 30, 2017, we had $10.0 million available under our line of credit agreements.

Mark A. LeDoux, Chairman and Chief Executive Officer stated, "I am delighted with the performance of our company this past year, in spite of several challenging circumstances. As the world continues to reset regulatory guidelines, and markets seek various levels of protection or expansion, our industry has been adversely impacted in several markets in Asia. During this past fiscal year, we saw regulatory changes in places like China cause significant disruption and diminution of product sales to some of our Australian based customers and, as a consequence, sales expectations were substantially reduced in light of the uncertainty of the regulatory environment.

"We believe that our next fiscal year should see a resurgence of growth in our contract manufacturing services from a variety of markets based on our expanded capabilities in both the USA and Switzerland."

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.