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): APRIL 27, 2007
000-15701
(Commission file number)
NATURAL ALTERNATIVES INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
| Delaware | 84-1007839 | |
| (State of incorporation) | (IRS Employer Identification No.) | |
| 1185 Linda Vista Drive San Marcos, California 92078 |
(760) 744-7340 | |
| (Address of principal executive offices) | (Registrant’s telephone number) | |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
| Item 2.02. | Results of Operations and Financial Condition. |
On April 27, 2007, the registrant issued a press release announcing financial results for the third quarter ended March 31, 2007. A copy of this press release is attached hereto as Exhibit 99.1.
The information in this report furnished pursuant to this Item 2.02 and the exhibits hereto shall not be deemed to be “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise subject to the liabilities of such Section 18. The information in this report shall not be incorporated by reference into any filing of the registrant with the United States Securities and Exchange Commission , whether made before or after the date hereof, regardless of any general incorporation language in such filings.
| Item 9.01. | Financial Statements and Exhibits. |
| (d) | Exhibits. |
| 99.1 | Press release dated April 27, 2007 of NAI. |
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: April 30, 2007 | By: | /s/ John Reaves | ||
| John Reaves | ||||
| Chief Financial Officer | ||||
Exhibit 99.1
Natural Alternatives International, Inc.
Announces Third Quarter Results
Highlights
| • | Third quarter fiscal 2007 revenue of $23.8 million, an increase of $404,000, or 2%, from $23.4 million in the same quarter last year. |
| • | Third quarter fiscal 2007 net income of $369,000, a decrease of $252,000, or 41%, from $621,000 in the same quarter last year. |
SAN MARCOS, CALIF, April 27, 2007 /PRNewswire/ —Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced revenue of $23.8 million and net income of $369,000 or $0.05 per diluted share for the three months ended March 31, 2007.
Revenue of $23.8 million in the third quarter of fiscal 2007 represented an increase of $404,000 from the same quarter last year. The increase was primarily due to a $923,000, or 5%, increase in private label contract manufacturing sales partially offset by a $519,000, or 11%, decrease in branded products sales.
Net income in the third quarter of fiscal 2007 decreased to $369,000 or $0.05 per diluted share from $621,000 or $0.09 per diluted share in the comparable quarter last year. Income from operations in the third quarter of fiscal 2007 decreased to $596,000 from $1.1 million in the comparable quarter last year.
Cash flows from operating activities for the nine months ended March 31, 2007 were $13.4 million. As of March 31, 2007, NAI had cash and working capital of $3.8 million and $14.9 million, respectively, compared to $2.2 million and $13.2 million, respectively, as of June 30, 2006. As of March 31, 2007, we had $6.4 million available under our working capital line of credit.
President Randell Weaver stated, “We are pleased with our strong balance sheet and continued profitability. During the third quarter we experienced a decrease in branded products revenue compared to the year ago quarter primarily due to lower sales of the Dr. Cherry Pathway to Healing® product line. This decrease, along with a shift in mix from our higher margin branded products sales to lower margin contract manufacturing sales, negatively impacted our operating income. As of April 2007, Dr. Cherry is no longer airing his weekly television program, which served as the primary customer acquisition vehicle in marketing the Pathway to Healing® product line. We have been working with Dr. Cherry to finalize marketing plans to replace the weekly television program.”
Mr. Weaver added, “In the fourth quarter of fiscal 2006, we enjoyed a record quarter for revenue. During that quarter, we shipped significant initial orders to a new customer and are now shipping additional orders to that customer. We do not expect to repeat last year’s record fourth quarter, and we anticipate revenue in the fourth quarter of fiscal 2007 will be in line with revenue in the just completed third quarter.”
NAI, headquartered in San Marcos, 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 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 expectations and beliefs with respect to future financial and operating results, including the amount of our future revenue and profits, our ability to continue to diversify our sources of revenue and the means by which we may be able to do so, and our ability to continue to implement our strategic plans, to expand and successfully market our brands, and 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 and Quarterly Report on Form 10-Q.
SOURCE – Natural Alternatives International, Inc.
CONTACT – John R. Reaves, Chief Financial Officer, Natural Alternatives International, Inc.,
760-736-7700 or investor@nai-online.com.
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
| March 31, 2007 |
June 30, 2006 | |||||
| ASSETS |
||||||
| Cash and cash equivalents |
$ | 3,788 | $ | 2,157 | ||
| Accounts receivable, net |
3,980 | 12,839 | ||||
| Inventories, net |
17,505 | 17,054 | ||||
| Deferred income taxes |
1,251 | 1,059 | ||||
| Other current assets |
2,213 | 1,916 | ||||
| Total current assets |
28,737 | 35,025 | ||||
| Property and equipment, net |
15,571 | 15,943 | ||||
| Goodwill and purchased intangibles, net |
11,403 | 11,303 | ||||
| Other assets |
168 | 182 | ||||
| Total Assets |
$ | 55,879 | $ | 62,453 | ||
| LIABILITIES AND STOCKHOLDERS’ EQUITY |
||||||
| Current liabilities |
$ | 13,844 | $ | 21,853 | ||
| Long-term debt, less current installments |
3,240 | 4,596 | ||||
| Deferred income taxes |
1,260 | 1,260 | ||||
| Deferred rent |
1,241 | 1,262 | ||||
| Long-term pension liability |
234 | 191 | ||||
| Total Liabilities |
19,819 | 29,162 | ||||
| Stockholders’ Equity |
36,060 | 33,291 | ||||
| Total Liabilities and Stockholders’ Equity |
$ | 55,879 | $ | 62,453 | ||
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share and per share data)
(Unaudited)
| Three Months Ended March 31, |
Nine Months Ended March 31, | |||||||||||
| 2007 | 2006 | 2007 | 2006 | |||||||||
| NET SALES |
$ | 23,791 | $ | 23,387 | $ | 73,001 | $ | 65,232 | ||||
| Cost of goods sold |
18,394 | 17,585 | 56,387 | 51,556 | ||||||||
| Gross profit |
5,397 | 5,802 | 16,614 | 13,676 | ||||||||
| Selling, general & administrative expenses |
4,801 | 4,655 | 14,221 | 11,008 | ||||||||
| INCOME FROM OPERATIONS |
596 | 1,147 | 2,393 | 2,668 | ||||||||
| Other expense, net |
117 | 170 | 466 | 290 | ||||||||
| INCOME BEFORE INCOME TAXES |
479 | 977 | 1,927 | 2,378 | ||||||||
| Provision for income taxes |
110 | 356 | 617 | 884 | ||||||||
| NET INCOME |
$ | 369 | $ | 621 | $ | 1,310 | $ | 1,494 | ||||
| NET INCOME PER COMMON SHARE: |
||||||||||||
| Basic |
$ | 0.05 | $ | 0.09 | $ | 0.19 | $ | 0.24 | ||||
| Diluted |
$ | 0.05 | $ | 0.09 | $ | 0.18 | $ | 0.22 | ||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
||||||||||||
| Basic |
6,885,489 | 6,571,924 | 6,815,323 | 6,257,043 | ||||||||
| Diluted |
7,202,454 | 7,005,954 | 7,193,626 | 6,653,383 | ||||||||