CARLSBAD, Calif., Sept. 21, 2020 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today reported financial operating results for the fourth quarter and fiscal year ended June 30, 2020. 

Consolidated net sales during the three months ended June 30, 2020, increased $4.8 million, or 16%, from $30.3 million recorded in the comparable prior year period.  For the quarter ended June 30, 2020, private-label contract manufacturing sales increased $5.7 million, or 21%, from the comparable quarter last year. CarnoSyn® beta-alanine licensing and raw material sales decreased 28% to $2.3 million during the fourth quarter of fiscal year 2020, as compared to $3.2 million for the fourth quarter of fiscal 2019. Net income was $1.8 million, or $0.27 per diluted share, for the fourth quarter of fiscal year 2020, compared to a net loss of $0.02 million, or $0.03 per diluted share, in the fourth quarter of fiscal year 2019.

Consolidated net sales during fiscal 2020 decreased $19.4 million, or 14%, from $138.3 million recorded in fiscal 2019.  For fiscal 2020, private-label contract manufacturing sales decreased $15.3 million, or 13%, from the comparable period last year. A majority of this decline occurred during the first nine months of fiscal 2020 while the fourth quarter of fiscal 2020 included a year over year increase. 

CarnoSyn® beta-alanine licensing and raw material sales during fiscal 2020 decreased $4.1 million, or 25%, from $16.7 million during fiscal 2019. This decrease was due in part to lower overall consumer demand for our customers' CarnoSyn® products, which included the negative impact COVID-19 had on the sports nutrition industry in the latter part of fiscal 2020 due to the shutdown of athletic activities and gyms across the USA.

For fiscal year 2020, we had a net loss of $1.6 million, or $0.25 per diluted share, compared to net income of $6.5 million, or $0.92 per diluted share, for fiscal 2019.  Our results for fiscal 2020 were negatively impacted by a non-cash $4.3 million accounts receivable and inventory reserve related to a former customer.

Based on our current sales order volumes and forecasts we have received from our customers, we expect our fiscal 2021 consolidated net sales to increase as compared to fiscal 2020.  We also expect operating income will increase in fiscal 2021 primarily due to increased sales. As of June 30, 2020, we had cash of $30.5 million (including the $10.0 million we withdrew from our credit facility with Wells Fargo during March 2020 out of an abundance of caution due to the COVID-19 pandemic) and working capital of $51.2 million compared to $25.0 million and $57.1 million, respectively, as of June 30, 2019.

On September 18, 2020 our Board of Directors authorized a $2.0 million increase to our stock repurchase plan bringing the total plan authorized repurchase amount to $12.0 million. Under the repurchase plan, NAI may, from time to time, purchase shares of its common stock, depending upon market conditions, in open market or privately negotiated transactions. Since June 30, 2020, we have purchased an additional 230,451 shares of our common stock under this plan bringing our total plan purchases to date to 1.5 million shares. With this additional authorization there is $2.0 million remaining available for stock repurchases under the plan.

Mark A. LeDoux, Chairman and Chief Executive Officer stated, "Our fourth quarter sales and profits were encouraging.  While nobody could have predicted the emergence of a pandemic earlier this year, our efforts to address these challenges have been rewarded and our business saw a significant surge in sales and commensurate profitability in the fourth quarter."

"At the moment, we see continued strength in the marketplace for nutritional dietary supplements.  Recognizing that good health is an essential defense, consumers are turning to supplements as an intelligent resource to help strengthen their systems and their overall health during these uncertain times."

"With the current growth in demand, we are actively increasing our manufacturing head-count and operational capabilities in the USA and Switzerland.  This is in direct response to significant increases in contract manufacturing demand across a variety of channels as well as geographically."

"With our current working capital and customer base positioning, and given the increased utilization of our production assets on both continents, we expect to realize solid growth in both sales and profits during fiscal 2021. We remain committed to buying back shares anytime we believe it is in our stockholders' long term best interest, while continuing to be cautious about our liquidity and the unknown impact of the current health crisis."

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, the impact of COVID-19 and our ability to remain operational, our future revenue profits and financial condition, our ability to introduce products in new sales channels, 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 that 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.

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SOURCE Natural Alternatives International, Inc.