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And First Quarter Net Income Improvement of $1.2 Million
SAN MARCOS, Calif., Nov. 5 /PRNewswire-FirstCall/ -- Natural Alternatives International ("NAI"), Inc. (Nasdaq: NAII), a leading formulator and manufacturer of customized nutritional supplements, today reported net income of $537,000 or $0.09 per diluted share on net sales of $13.1 million in its fiscal first quarter ended September 30, 2002.
First quarter net income increased $1.2 million to $537,000 or $0.09 per diluted share from a net loss of ($658,000) or ($0.11) per diluted share for the comparable quarter last year. Revenues increased 32% to $13.1 million from $9.9 million for the comparable quarter last year. The revenue growth resulted primarily from a 34% increase in contract manufacturing sales and a 29% increase in direct-to-consumer sales. Additionally, first quarter results included receipt of the previously disclosed final litigation settlement payment of $225,000. First quarter net income excluding the settlement payment was $332,000 or $0.06 per diluted share.
At September 30, 2002, NAI had cash and working capital of approximately $2.8 million and $9.6 million, respectively, compared to $640,000 and $8.7 million, respectively, at June 30, 2002. Long-term debt was reduced by $141,000 to $2.0 million during the quarter.
COO Randell Weaver said, "We are pleased that we have been able to continue the turn around and see those efforts generate revenue growth and improved profitability. We are focused on maintaining profitability on limited revenue growth in the near future. The recent refinancing of NAI's credit facility along with the cash flow generated from operations provides us with the capital necessary to implement our business strategies."
CEO Mark LeDoux said, "Our quarterly results demonstrate our management team is effectively leading NAI toward maintaining sustainable and profitable growth. Our balance sheet continues to strengthen which will allow us to capitalize on opportunities that may arise in the future."
NAI, headquartered in San Marcos, California, is a leading formulator and manufacturer of nutritional supplements that provides strategic partnering services to its customers. The Company's comprehensive partnership approach offers a wide range of innovative nutritional products and services to the client including: scientific research, clinical studies, 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 the Company's intentions, expectations and beliefs concerning future events, including, among other things, expectations and beliefs with respect to future financial and operating results; the ability to sustain profitability, maintain adequate financing, improve liquidity, maintain revenue growth, and implement its strategic plan. The Company wishes to caution and advise 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. The Company'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 the Company with the Securities and Exchange Commission, including NAI's most recent Annual Report on Form 10-K.
For further information please contact: Randell Weaver, Chief Operating
Officer of Natural Alternatives International, Inc., 1-760-744-7340,
or info@nai-online.com.
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
September 30, June 30,
2002 2002
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(Unaudited)
ASSETS
Cash and cash equivalents $2,824 $640
Restricted cash 1,500 1,500
Accounts receivable, net 3,698 3,536
Inventories 7,521 7,871
Income tax refund receivable 701 701
Other current assets 1,205 604
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Total current assets 17,449 14,852
Property and equipment, net 11,996 12,439
Related parties notes receivable 116 118
Other assets 101 101
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Total Assets $29,662 $27,510
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LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities $7,891 $6,127
Long-term debt, less current installments 1,421 1,576
Long-term pension liability 172 199
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Total Liabilities 9,484 7,902
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Stockholders' Equity 20,178 19,608
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Total Liabilities and Stockholders' Equity $29,662 $27,510
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except share data)
(Unaudited)
Three months ended
March 31,
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2002 2001
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NET SALES $13,136 $9,887
Cost of goods sold 9,941 7,863
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Gross profit 3,195 2,024
Selling, general & administrative expenses 2,792 2,454
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INCOME (LOSS) FROM OPERATIONS 403 (430)
Other income (expense) 142 (214)
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INCOME (LOSS) BEFORE INCOME TAXES 545 (644)
Provision for income taxes 8 14
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NET INCOME (LOSS) $537 $(658)
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NET INCOME (LOSS) PER COMMON SHARE:
Basic $0.09 $(0.11)
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Diluted $0.09 $(0.11)
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WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic shares 5,802,864 5,785,606
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Diluted shares 5,928,884 5,785,606
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