EX-99.1 2 dex991.htm PRESS RELEASE Press release

Exhibit 99.1

 

LOGO

 

Natural Alternatives International, Inc.

Announces First Quarter Results

 

SAN MARCOS, CALIF, October 24, 2005 /PRNewswire/ —Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator and manufacturer of customized nutritional supplements, today announced net income of $412,000 or $0.06 per diluted share on net sales of $21.7 million for the three months ended September 30, 2005.

 

First quarter net sales decreased 4% to $21.7 million from $22.7 million for the comparable quarter last year. The reduction in net sales resulted primarily from the decrease in private label contract manufacturing sales. Income from operations decreased to $678,000 from $1.4 million in the comparable quarter last year. Net income decreased to $412,000 or $0.06 per diluted share from $852,000 or $0.13 per diluted share for the comparable quarter last year.

 

As of September 30, 2005, NAI had cash and working capital of $5.6 million and $15.3 million compared to $1.9 million and $14.4 million at June 30, 2005, respectively. Cash flows from operating activities for the first quarter were $3.8 million.

 

President Randell Weaver commented, “An increase in revenue from our largest customer was offset by a reduction in revenue from our second largest and other contract manufacturing customers. As we anticipate the decline in revenue to continue in the second quarter of fiscal 2006, we are responding appropriately to reduce our cost structure and remain profitable. We continue to identify and evaluate acquisition opportunities that could increase product lines, expand distribution channels or enhance manufacturing capabilities.”

 

CEO Mark LeDoux added, “We have made a considerable investment in our recent facility expansion and TGA recertification in an effort to develop new relationships with large, quality


oriented contract manufacturing customers. We believe this strategy is beginning to be rewarded. We have received initial purchase orders from two new customers who are leaders in the direct sales marketing channel. We expect to fill the initial orders in our fiscal third and fourth quarters and are optimistic our relationships with these new customers will continue to grow.”

 

NAI, headquartered in San Marcos, California, is a leading formulator and manufacturer 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 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 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, receiving continuing support from our larger customers, our expectations and beliefs with respect to future financial and operating results, and our ability to continue to implement our strategic plans and develop and increase sales to new 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)

 

     September 30,
2005


   June 30,
2005


ASSETS

             

Cash and cash equivalents

   $ 5,585    $ 1,916

Accounts receivable, net

     5,929      10,834

Inventories, net

     14,079      12,987

Deferred income taxes

     451      421

Other current assets

     1,120      1,012
    

  

Total current assets

     27,164      27,170

Property and equipment, net

     15,913      16,507

Deferred income taxes

     276      276

Other assets

     185      185
    

  

Total Assets

   $ 43,538    $ 44,138
    

  

LIABILITIES AND STOCKHOLDERS’ EQUITY

             

Current liabilities

   $ 11,836    $ 12,772

Long-term debt, less current installments

     2,772      2,979

Deferred rent

     1,266      1,264

Long-term pension liability

     221      206
    

  

Total Liabilities

     16,095      17,221
    

  

Stockholders’ Equity

     27,443      26,917
    

  

Total Liabilities and Stockholders’ Equity

   $ 43,538    $ 44,138
    

  

 

NATURAL ALTERNATIVES INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(In thousands, except share and per share data)

(Unaudited)

 

    

Three months ended

September 30,


     2005

   2004

NET SALES

   $ 21,733    $ 22,727

Cost of goods sold

     17,677      17,409
    

  

Gross profit

     4,056      5,318

Selling, general & administrative expenses

     3,378      3,924
    

  

INCOME FROM OPERATIONS

     678      1,394

Other expense, net

     27      50
    

  

INCOME BEFORE INCOME TAXES

     651      1,344

Provision for income taxes

     239      492
    

  

NET INCOME

   $ 412    $ 852
    

  

NET INCOME PER COMMON SHARE:

             

Basic

   $ 0.07    $ 0.14
    

  

Diluted

   $ 0.06    $ 0.13
    

  

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING:

             

Basic shares

     6,013,390      5,923,766
    

  

Diluted shares

     6,469,104      6,447,677