CARLSBAD, Calif., Feb. 14, 2017 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $2.5 million, or $0.37 per diluted share, on net sales of $30.6 million for the quarter ended December 31, 2016.

Net sales during the three months ended December 31, 2016 increased $3.6 million, or 13.6%, from $26.9 million recorded in the comparable prior year period.  For the quarter ended December 31, 2016, private label contract manufacturing sales increased $2.2 million, or 10.4%, from the comparable quarter last year.  Our second quarter fiscal 2017 contract manufacturing sales were favorably impacted due to timing and shipment of orders and new product launches. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 26.5% to $6.7 million during the second quarter of fiscal 2017 as compared to $5.3 million for the second quarter of fiscal 2016.  The increase in CarnoSyn® beta-alanine revenue was primarily due to the addition of new customers and increased material shipments to existing customers. 

Net sales during the six months ended December 31, 2016 increased $16.1 million, or 33.3%, from $48.5 million recorded in the comparable prior year period.  For the six months ended December 31, 2016, private label contract manufacturing sales increased $13.4 million, or 35.3%, from the comparable quarter last year.  CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 26.1% to $13.4 million during the first half of fiscal 2017 as compared to $10.6 million for the comparable prior year period.  The increase in CarnoSyn® beta-alanine revenue was primarily due to the addition of new customers and increased material shipments to existing customers. 

On an annualized basis, we now expect our consolidated fiscal 2017 revenue growth percentage to be approximately 5% to 10% due to reductions in contract manufacturing orders and customer forecasts from Australia, Asia, and Europe.  We expect a majority of this decline to occur in our third fiscal quarter ending March 31, 2017 and to a lesser extent in our fourth fiscal quarter. We believe this international revenue decline will be temporary in nature and will reverse as we enter fiscal 2018 beginning July 1, 2017.  With respect to our CarnoSyn® beta-alanine business, we expect our current sales growth rate to continue for the balance of this fiscal year as we continue to expand our research, our patent estate and our client base.

Net income for the first six months of fiscal 2017 was $5.0 million, or $0.74 per diluted share, compared to net income of $3.1 million, or $0.46 per diluted share, in the comparable prior year period. This increase was primarily attributable to increased sales related to our private label contract manufacturing segment and increased product margin from CarnoSyn® beta-alanine sales due to increased sales and lower supply chain costs, partially offset by increased legal costs associated with our efforts to enforce compliance with our patents related to instant release CarnoSyn® and to protect our trade name in the market place against parties who are using it without our consent.

As of December 31, 2016, NAI had cash of $21.4 million and working capital of $40.8 million compared to $19.7 million and $36.7 million, respectively, as of June 30, 2016.  As of December 31, 2016, we had $10.0 million available under our line of credit agreements.

Mark A. Le Doux, Chairman and Chief Executive Officer stated, "I am pleased with the performance of the company for the first half of this fiscal year. While several challenges from the contract manufacturing side of the business exist through the balance of this year, I remain confident our continued investment in research, production efficiencies, sales initiatives and patent prosecution should help us achieve double digit growth in the approaching fiscal year in all our business segments."

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, 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.