UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 27, 2003
Commission file number 0-15701
NATURAL ALTERNATIVES INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
Delaware (State or other jurisdiction of incorporation or organization) |
84-1007839 (I.R.S. Employer Identification No.) |
1185 Linda Vista Drive
San Marcos, California 92069
(Address of principal executive offices, including zip code)
(760) 744-7340
(Registrants telephone number, including area code)
Item 7. | Financial Statements, Pro Forma Financial Information and Exhibits. |
(c) | Exhibits. |
99.1 | Press release dated October 27, 2003 of the registrant |
Item 12. | Results of Operations and Financial Condition. |
On October 27, 2003, the registrant issued a press release announcing financial results for the first quarter ended September 30, 2003. A copy of this press release is attached hereto as Exhibit 99.1.
The information in this report and the exhibits hereto shall not be deemed to be filed for the purposes of Section 18 of the Securities and Exchange Act of 1934 or otherwise subject to the liabilities of that Section. The information in this report shall not be incorporated by reference into any filing of the registrant with the SEC, whether made before or after the date hereof, regardless of any general incorporation language in such filings.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Natural Alternatives International, Inc. | ||||||
Date: October 27, 2003 |
By: | /s/ John R. Reaves | ||||
John R. Reaves Chief Financial Officer |
Exhibit 99.1
Natural Alternatives International, Inc. Reports 27% Revenue Increase and Net Income of $0.09 per Diluted Share for the First Three Months of Fiscal 2004
SAN MARCOS, CALIF, October 27, 2003 /PRNewswire/ Natural Alternatives International (NAI), Inc. (Nasdaq: NAII), a leading formulator and manufacturer of customized nutritional supplements, reported net income of $567,000 or $0.09 per diluted share on revenue of $16.7 million for the three months ended September 30, 2003.
First quarter revenue increased 27% to $16.7 million from $13.1 million for the comparable quarter last year. The revenue growth resulted from a 30% increase in private label contract manufacturing sales and a 15% increase in Direct-to-Consumer (DTC) sales. Income from operations increased $227,000 to $630,000 from $403,000 for the same period of the prior fiscal year. Excluding the effects of litigation settlement proceeds of $225,000 in the prior fiscal year, net income increased $255,000 to $567,000 or $0.09 per diluted share from $312,000 or $0.05 per diluted share for the same period of the prior fiscal year. Net income as reported increased $30,000 from $537,000 or $0.09 per diluted share for the comparable quarter last year.
As of September 30, 2003, NAI had cash and working capital of approximately $3.2 million and $13.1 million, respectively, compared to $5.5 million and $12.3 million, respectively, at June 30, 2003.
Chairman and CEO Mark LeDoux commented, We begin fiscal 2004 building upon the groundwork established in fiscal 2003. Our focus on serving the needs of our valued primary customers continues to produce significant private label contract manufacturing sales growth. Additionally, our investment in marketing the Dr. Cherry Pathway to Healing brand combined with new product introductions resulted in record quarterly DTC revenues of $3 million for the first quarter of fiscal 2004. Looking forward we anticipate moderate revenue growth for the second quarter of fiscal 2004 from incremental production for existing customers and continued growth of our DTC marketing program.
President Randell Weaver commented that, We are encouraged that while we continue to invest in quality assurance, regulatory compliance and strategies to provide long-term revenue growth, our income from operations still improved to $630,000. We anticipate strengthening our investment in NAIs long-term growth and improving operational efficiency while maintaining current profitability levels in the near term. Additionally, we continue to evaluate expansion opportunities that could increase product lines, enhance our manufacturing capabilities or reduce risks associated with reliance on a limited number of customers.
NAI, headquartered in San Marcos, California, is a leading formulator and manufacturer of nutritional supplements that provides strategic partnering services to its customers. The Companys comprehensive partnership approach offers a wide range of innovative nutritional products and services to the client 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 the Companys intentions, expectations and beliefs concerning future events, including, among other things, expectations and beliefs with respect to future financial and operating results and the ability to sustain profitability, maintain adequate financing, improve liquidity, maintain revenue growth, and implement its strategic plan. The Company wishes 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. The Companys 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 NAIs most recent Annual Report on Form 10-K.
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SOURCENatural Alternatives International, Inc.
CONTACTJohn R. Reaves, Chief Financial Officer, Natural Alternatives International, Inc., 760-744-7340 or info@nai-online.com.
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NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
September 30, 2003 |
June 30, 2003 | |||||
(Unaudited) | ||||||
ASSETS |
||||||
Cash and cash equivalents |
$ | 3,179 | $ | 5,482 | ||
Accounts receivable, net |
6,150 | 5,668 | ||||
Inventories, net |
10,443 | 7,845 | ||||
Other current assets |
1,356 | 766 | ||||
Total current assets |
21,128 | 19,761 | ||||
Property and equipment, net |
10,541 | 10,820 | ||||
Other assets |
134 | 143 | ||||
Total Assets |
$ | 31,803 | $ | 30,724 | ||
LIABILITIES AND STOCKHOLDERS EQUITY |
||||||
Current liabilities |
$ | 8,029 | $ | 7,440 | ||
Long-term debt, less current installments |
2,243 | 2,386 | ||||
Long-term pension liability |
156 | 121 | ||||
Total Liabilities |
10,428 | 9,947 | ||||
Stockholders Equity |
21,375 | 20,777 | ||||
Total Liabilities and Stockholders Equity |
$ | 31,803 | $ | 30,724 | ||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)
Three months ended September 30, | |||||||
2003 |
2002 | ||||||
(Unaudited) | |||||||
NET SALES |
$ | 16,721 | $ | 13,136 | |||
Cost of goods sold |
12,575 | 9,941 | |||||
Gross profit |
4,146 | 3,195 | |||||
Selling, general & administrative expenses |
3,516 | 2,792 | |||||
INCOME FROM OPERATIONS |
630 | 403 | |||||
Other income (expense) |
(41 | ) | 142 | ||||
INCOME BEFORE INCOME TAXES |
589 | 545 | |||||
Provision for income taxes |
22 | 8 | |||||
NET INCOME |
$ | 567 | $ | 537 | |||
NET INCOME PER COMMON SHARE: |
|||||||
Basic |
$ | 0.10 | $ | 0.09 | |||
Diluted |
$ | 0.09 | $ | 0.09 | |||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
|||||||
Basic shares |
5,820,709 | 5,804,267 | |||||
Diluted shares |
6,106,834 | 5,928,884 | |||||