Natural Alternatives International, Inc. Announces Fiscal 2013 Q2 Results
SAN MARCOS, Calif., Feb. 12, 2013 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $102,000 or $0.01 per diluted share on net sales of $13.7 million for the quarter ended December 31, 2012.
Net sales for the three months ended December 31, 2012 decreased by $2.5 million or 15.3% from $16.2 million recorded in the comparable prior year period. For the quarter ended December 31, 2012, contract manufacturing sales decreased $2.5 million or 16.7% from the comparable quarter last year due primarily to lower sales of established products associated with lower consumer demand, delayed customer product launches and customer inventory reduction programs. Patent royalty and trademark licensing revenue increased 14.4% to $824,000 during the quarter ended December 31, 2012 as compared to the prior year period. Royalty and licensing revenue was derived through the sale and licensing of the ingredient known as beta-alanine sold under our CarnoSyn® trade name. Our branded products sales totaled $338,000 for the second quarter of fiscal 2013 as compared to $403,000 for the comparable prior year period.
Net sales for the six months ended December 31, 2012 decreased 12.6% to $30.1 million from $34.5 million recorded in the comparable prior year period. Contract manufacturing sales during the first six months of fiscal 2013 decreased $4.4 million or 13.8% from the comparable prior year period and patent and trademark licensing revenue increased $144,000 or 7% during this same period. Our branded products sales decreased $124,000 or 15.4% for the first six months of fiscal 2013.
Net income for the first six months of fiscal 2013 totaled $799,000 or $0.12 per diluted share compared to net income of $2.3 million or $0.33 per diluted share in the comparable prior year period. The decline in net income was primarily attributable to decreased contract manufacturing sales, increased raw material and manufacturing production costs, unfavorable foreign currency exchange rates and increased patent litigation and prosecution expenses which totaled $1.4 million for the first six months of fiscal 2013.
As of December 31, 2012, we had cash of $17.0 million and working capital of $27.9 million compared to $14.5 million and $27.7 million, respectively, as of June 30, 2012. As of December 31, 2012, we had $5.5 million available under our line of credit agreements.
Mark A. LeDoux, Chairman and Chief Executive Officer commented, "The quarter ending December 2012 was clearly disappointing in terms of revenue and profitability. The trend for the current period remains difficult as well given the uncertainty of the timing of sales associated with our current customers' new product launches and planned initial sales of new customer products."
"We were however, very pleased to recently receive notice of a positive ruling by the Chief Judge of the Delaware Federal District Court, which granted NAI's motion to dismiss a declaratory judgment patent case filed against it in Delaware in favor of the action properly brought by NAI in Houston, TX. With this recent development, we believe we are well positioned to move forward with our allegations in the Texas case against a significant infringer of our beta-alanine patent estate."
"On December 11, 2012 we received our newest patent in the USA related to sustained release CarnoSyn® beta-alanine, US Patent Number 8329207, and are happy to announce that we received a notice of allowance on December 13, 2012 that a second sustained release CarnoSyn® beta-alanine patent has been approved for issuance by the US Patent Office."
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 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 expectations and beliefs with respect to our future financial and operating results, including the amount of our future revenue and profits and our future financial condition, our ability to expand our contract manufacturing business and patent estate, comply with Good Manufacturing Practices and other applicable regulations and standards, improve stockholder value, remain debt free, develop, maintain or increase sales to new and existing customers, and successfully maintain and enforce our intellectual property rights, 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 and Quarterly Report on Form 10-Q.
CONTACT – Kenneth Wolf, Chief Operating and Chief Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or investor@nai-online.com.
Press Release $NAII Natural Alternatives International Inc.
SAN MARCOS, Calif., Feb. 12, 2013 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $102,000 or $0.01 per diluted share on net sales of $13.7 million for the quarter ended December 31, 2012.
Net sales for the three months ended December 31, 2012 decreased by $2.5 million or 15.3% from $16.2 million recorded in the comparable prior year period. For the quarter ended December 31, 2012, contract manufacturing sales decreased $2.5 million or 16.7% from the comparable quarter last year due primarily to lower sales of established products associated with lower consumer demand, delayed customer product launches and customer inventory reduction programs. Patent royalty and trademark licensing revenue increased 14.4% to $824,000 during the quarter ended December 31, 2012 as compared to the prior year period. Royalty and licensing revenue was derived through the sale and licensing of the ingredient known as beta-alanine sold under our CarnoSyn® trade name. Our branded products sales totaled $338,000 for the second quarter of fiscal 2013 as compared to $403,000 for the comparable prior year period.
Net sales for the six months ended December 31, 2012 decreased 12.6% to $30.1 million from $34.5 million recorded in the comparable prior year period. Contract manufacturing sales during the first six months of fiscal 2013 decreased $4.4 million or 13.8% from the comparable prior year period and patent and trademark licensing revenue increased $144,000 or 7% during this same period. Our branded products sales decreased $124,000 or 15.4% for the first six months of fiscal 2013.
Net income for the first six months of fiscal 2013 totaled $799,000 or $0.12 per diluted share compared to net income of $2.3 million or $0.33 per diluted share in the comparable prior year period. The decline in net income was primarily attributable to decreased contract manufacturing sales, increased raw material and manufacturing production costs, unfavorable foreign currency exchange rates and increased patent litigation and prosecution expenses which totaled $1.4 million for the first six months of fiscal 2013.
As of December 31, 2012, we had cash of $17.0 million and working capital of $27.9 million compared to $14.5 million and $27.7 million, respectively, as of June 30, 2012. As of December 31, 2012, we had $5.5 million available under our line of credit agreements.
Mark A. LeDoux, Chairman and Chief Executive Officer commented, "The quarter ending December 2012 was clearly disappointing in terms of revenue and profitability. The trend for the current period remains difficult as well given the uncertainty of the timing of sales associated with our current customers' new product launches and planned initial sales of new customer products."
"We were however, very pleased to recently receive notice of a positive ruling by the Chief Judge of the Delaware Federal District Court, which granted NAI's motion to dismiss a declaratory judgment patent case filed against it in Delaware in favor of the action properly brought by NAI in Houston, TX. With this recent development, we believe we are well positioned to move forward with our allegations in the Texas case against a significant infringer of our beta-alanine patent estate."
"On December 11, 2012 we received our newest patent in the USA related to sustained release CarnoSyn® beta-alanine, US Patent Number 8329207, and are happy to announce that we received a notice of allowance on December 13, 2012 that a second sustained release CarnoSyn® beta-alanine patent has been approved for issuance by the US Patent Office."
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 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 expectations and beliefs with respect to our future financial and operating results, including the amount of our future revenue and profits and our future financial condition, our ability to expand our contract manufacturing business and patent estate, comply with Good Manufacturing Practices and other applicable regulations and standards, improve stockholder value, remain debt free, develop, maintain or increase sales to new and existing customers, and successfully maintain and enforce our intellectual property rights, 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 and Quarterly Report on Form 10-Q.
CONTACT – Kenneth Wolf, Chief Operating and Chief Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or investor@nai-online.com.
Web site: http://www.nai-online.com
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)
Three Months Ended
Six Months Ended
December 31,
December 31,
2012
2011
2012
2011
NET SALES
$13,686
100.0%
$16,161
100.0%
$30,146
100.0%
$34,502
100.0%
Cost of goods sold
11,767
86.0%
12,808
79.3%
24,643
81.7%
26,466
76.7%
Gross profit
1,919
14.0%
3,353
20.7%
5,503
18.3%
8,036
23.3%
Selling, general & administrative expenses
2,192
16.0%
2,127
13.2%
4,747
15.7%
4,463
12.9%
(LOSS) INCOME FROM OPERATIONS
(273)
-2.0%
1,226
7.6%
756
2.5%
3,573
10.4%
Other income (expense), net
7
0.1%
(27)
-0.2%
(5)
0.0%
56
0.2%
(LOSS) INCOME BEFORE TAXES
(266)
-1.9%
1,199
7.4%
751
2.5%
3,629
10.5%
Income tax (benefit) expense
(368)
414
(48)
1,316
NET INCOME
$ 102
$ 785
$ 799
$ 2,313
NET INCOME PER COMMON SHARE:
Basic:
$0.01
$0.11
$0.12
$0.33
Diluted:
$0.01
$0.11
$0.12
$0.33
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:
Basic
6,891
6,971
6,905
6,992
Diluted
6,900
6,985
6,915
7,000
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
December 31
June 30
2012
2012
ASSETS
Cash and cash equivalents
$16,996
$14,478
Accounts receivable, net
3,313
8,751
Inventories, net
9,433
8,355
Deferred income taxes
699
699
Other current assets
1,964
2,236
Total current assets
32,405
34,519
Property and equipment, net
10,271
10,647
Deferred income taxes
1,471
1,471
Other noncurrent assets, net
434
560
Total Assets
$44,581
$47,197
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities
$4,558
$6,836
Deferred rent
364
493
Total Liabilities
4,922
7,329
Stockholders' Equity
39,659
39,868
Total Liabilities and Stockholders' Equity
$44,581
$47,197
SOURCE Natural Alternatives International, Inc.