News Category: Uncategorized

CARLSBAD, CALIF, September 21, 2023 /PRNewswire/ –Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, today announced net income of $2.0 million, or $0.35 per diluted share, on net sales of $35.9 million for the fourth quarter of fiscal year 2023 compared to net income of $3.1 million, or $0.52 per diluted share, in the fourth quarter of the prior fiscal year.

Net sales during the three months ended June 30, 2023, decreased $16.6 million, or 31.7%, to $35.9 million as compared to $52.5 million recorded in the comparable prior year period.  During the same period, private-label contract manufacturing sales decreased 35.2% to $32.3 million. Private-label contract manufacturing sales decreased for most of our customers primarily due to excess inventory levels associated with softening consumer demand. Many of our customers maintained larger inventory balances during the previous twelve months due to concerns about supply constraints and now that supply chain conditions are improving they have begun to release these excess inventory positions.

CarnoSyn^® beta-alanine royalty, licensing and raw material sales revenue increased 36.1% to $3.6 million during the fourth quarter of fiscal year 2023, as compared to $2.6 million for the fourth quarter of fiscal year 2022. The increase was primarily due to increased raw material sales and favorable changes in estimates for volume rebates.

Net income for fiscal year 2023 was $2.5 million, or $0.43 per diluted share, compared to net income of $10.7 million, or $1.74 per diluted share, for fiscal year 2022. Net income for fiscal year 2023 included a  benefit of $3.5 million related to anticipated refunds from the Employee Retention Tax Credit program and $1.4 million in recovery of accounts receivable written-off in a prior fiscal year.

Net sales during the year ended June 30, 2023, decreased $17.0 million, or 9.9%, to $154.0 million as compared to $171.0 million recorded in the comparable prior year.  During the year ended June 30, 2023, private-label contract manufacturing sales decreased $9.5 million, or 6.1%, from the comparable period last year. CarnoSyn^® beta-alanine royalty, licensing and raw material sales revenue decreased 46.1% to $8.7 million during the year ended June 30, 2023, as compared to $16.2 million in the prior year ended June 30, 2022.

On August 16, 2023, we announced the temporary closure of our new facility in Carlsbad, California which is anticipated to occur in October 2023. The closure was necessitated primarily due to excess inventory levels at one of our largest customers. We expect this facility will re-open and our prior level of operations will resume late in our third fiscal quarter of 2024. Subject to this, and our overall sales forecast, we currently anticipate we will experience a net loss in the first half of fiscal 2024, net income in the second half and an overall net loss in fiscal 2024.

As of June 30, 2023, we had cash of $13.6 million and working capital of $41.1 million, compared to $21.8 million and $52.9 million respectively, as of June 30, 2022. As of June 30, 2023, we had $20.0 million available under our line of credit agreement.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “Despite our near-term challenges and continued headwinds within our industry and the economy in general, we remain optimistic about our future growth. We continue to aggressively seek opportunities to diversify and increase our sales both through relationship development and product innovation.”

“We believe the foundation we have built over the past several years, including the strength of our balance sheet, will help us weather the turbulence we expect to encounter over the next several quarters.”

An updated investor presentation will be posted to the investor relations page on our website later today (https://www.nai-online.com/our-company/investors/).

NAI, headquartered in Carlsbad, 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 https://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 ability to develop, maintain or increase sales to new and existing customers, our ability to timely attract and retain sufficient labor, the availability of raw materials, our future revenue profits and financial condition, 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.

CONTACT – Michael Fortin, Chief Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or [email protected].

Web site: https://www.nai-online.com

CARLSBAD, Calif., Aug. 16, 2023 /PRNewswire/ — Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, today announced a temporary closure of its new facility in Carlsbad, California, opened earlier this year to expand NAI’s production and add high-speed powder blending and packaging to its manufacturing capabilities, with an initial objective of handling current and estimated orders from one of its largest customers.

Due to this customer’s efforts to rebalance supply and demand, it is temporarily ceasing purchases from Natural Alternatives. As a result, NAI has determined to temporarily close its new high-speed powder blending and packaging facility and has provided sixty days advance notice to most of the staff at that facility, who will be furloughed starting in early October and lasting until approximately December 31, 2023. NAI currently expects these economic factors will be short lived, and in order to influence furloughed employees to return, NAI will pay for the health insurance costs of all furloughed employees during the employee’s furlough period, through December 31, 2023. NAI expects to begin shipping new orders to this customer during the first quarter of calendar 2024.

Reduction of these anticipated orders and the closure of the facility is anticipated to have an adverse effect on our results of operations and financial condition primarily during the last calendar quarter of this year, and possibly into the early part of 2024.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “Despite the recent volatility in our industry, we remain optimistic about the long-term growth trends for nutritional supplements. We anticipate continued near term headwinds associated with both the overall macro-economic environment and factors specific to our industry. We will continue to aggressively seek opportunities to increase our sales, our customer base, and evaluate further cost reduction opportunities.”

NAI, headquartered in Carlsbad, 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 https://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 ability to increase sales to new and existing customers, our ability to retain and hire new employees when the cause of the current furloughs lift, and our future revenue profits and financial condition. 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.

CONTACT – Michael Fortin, Chief Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or [email protected].

Web site: https://nai-online.com

CARLSBAD, CA, JULY 25, 2023—Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII) ), a leading formulator, manufacturer, and marketer of customized nutritional supplements, announced that sales executive Shane Conti has joined the company as the Vice President of Global Sales and will be a key driver of global expansion and growth.

Over the course of his 25 plus year career in the domestic and international nutritional supplement industry, Conti has established a proven track record of success in building new business within multiple markets.

“Shane is a skilled relationship builder and comes to NAI with a rich knowledge of our company, having worked here in a Senior Business Development Manager role from 2016 to 2021. We are thrilled to welcome him back,” said Ken Wolf, President of NAI. “His leadership, wealth of experience and network of global contacts will help to accelerate our new business objectives while strengthening existing customer relationships.”

In his role as Vice President of Global Sales, Conti oversees the development and implementation of sales strategies, and leads the NAI sales team and client service departments to meet or exceed sales revenue, sales profitability, and budgetary objectives.

Conti shared, “I’m excited to be back at NAI to lead global sales. I look forward to showcasing NAI’s contract manufacturing capabilities and capacities—especially with the recent addition of the new state-of-the-art powder blending and packaging facility in Carlsbad, California.”

About NAI:

NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. NAI’s comprehensive partnership approach offers a wide range of innovative nutritional products and services to clients including scientific research, 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 visit  www.nai-online.com.

Contact:
Renee Michaelson
Director of Global Marketing
NAI/CarnoSyn^® Brands
(760) 736-7700
[email protected]

CARLSBAD, CA, MAY 31, 2023—CarnoSyn^® Brands and parent company Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), are proud to announce that SR CarnoSyn^® sustained release beta-alanine has been selected as a finalist in this year’s NutraIngredients-USA Awards in two categories: Ingredient of the Year: Healthy Aging and Ingredient of the Year: Cognitive Function.

The NutraIngredients-USA Awards honors excellence and innovation in ingredients, finished products, companies, people, and initiatives in the nutrition and dietary supplements industry. The Ingredient of the Year category for Healthy Aging celebrates the best the industry has to offer in tailored solutions to remain physically and mentally healthy as we age. The Ingredient of the Year in the Cognitive Function category recognizes the best ingredients dedicated to supporting cognition, memory, alertness, and other cognitive processes. The 2023 NutraIngredients-USA Awards presentation will be a virtual event taking place on Wednesday, July 12, at 11:00 a.m. CT in Chicago.

“The designation of Award Finalist is an honor and a tribute to the many years of rigorous clinical testing and tremendous financial investment in patenting the sustained release formulation,” said Aaron Starr, Vice President, CarnoSyn^® Brands. “SR CarnoSyn^® beta-alanine is truly a game changer when it comes to healthy aging and cognitive function. Consumers are more focused than ever on improving overall health and seek new solutions to stay healthy and active with vitality. By adding SR CarnoSyn^® sustained release tablets to their product portfolio as a turnkey private label or custom formulation, wellness brands can answer consumer demand—with a strong focus on the latest in health science innovation.”

Backed by years of clinical research, SR CarnoSyn^® unlocks the many benefits of the antioxidant carnosine to help people get more out of life. As we age, our carnosine levels decrease. SR CarnoSyn^® is a patented, sustained release form of beta-alanine that stays in the body longer to enable the synthesis of more carnosine for greater bioavailability within the brain, muscles, and other tissues. SR CarnoSyn^® supports the body in five important ways: brain health, heart health, bone health, muscle function, and system immunity—all while limiting the paresthesia normally associated with an efficacious dosage of beta-alanine.

“NAI’s expert team has formulated one of the most science-backed dietary supplements available,” said Dr. Di Tan, Director of Scientific Affairs, CarnoSyn^® Brands. “As pioneers in science, NAI goes beyond just following set rules to test extensive parameters and biomarkers; NAI explores what the world of healthy aging and longevity has yet to uncover.”

About CarnoSyn^® Brands:
CarnoSyn^® Brands feature two clinically studied, patented ingredients available exclusively from Natural Alternatives International, Inc.: CarnoSyn^® instant release beta-alanine powder and SR CarnoSyn^® sustained release beta-alanine tablets. In 2019, CarnoSyn^® beta-alanine successfully obtained NDI status from the FDA and received Self-Affirmed GRAS (Generally Recognized as Safe) status. SR CarnoSyn^®, an advanced delivery form of CarnoSyn^®, received GRAS affirmation in 2017. The GRAS affirmation allows NAI to broaden their product offerings within the food and beverage industries, including medical and other fortified food products. For information on SR CarnoSyn^® in healthy aging and wellness, visit www.srcarnosyn.com. For more information about CarnoSyn^® in sports nutrition, please visit: www.carnosyn.com.

About NAI:
NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. NAI’s comprehensive partnership approach offers a wide range of innovative nutritional products and services to clients including scientific research, 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 visit www.nai-online.com.

Contact:
Renee Michaelson
Director of Global Marketing
NAI/CarnoSyn^® Brands
(760) 736-7700
[email protected]

Carlsbad, California Plant Allows Greater Supply Chain Flexibility
and Supports Higher Volume of Production

CARLSBAD, CA, MAY 24, 2023—Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII) today announced the expansion of its global dietary supplement contract manufacturing network, providing the ability to better service existing customers, attract new customers, expand sales, and provide potential for channel and customer diversification.

The state-of-the-art high-volume powder blending and packaging facility will provide an annual plant capacity of over 26 million pounds of powder. The new facility employs 84 and is comprised of 54,154 square feet of manufacturing and warehouse space for raw material and finished product storage. New equipment technologies include two 400 cubic foot fluidizing paddle blenders, high speed rotary pouchers, and gravity flow racking.

Mark A. LeDoux, Chairman and Chief Executive Officer of NAI stated, “We’re very pleased to announce the commercial opening of our new Carlsbad facility. This milestone presents a valuable opportunity to bring more jobs to the area and to allow NAI to further expand our manufacturing capabilities and meet the growing needs of the dietary supplement powder market. The Carlsbad expansion adds to our existing full-service manufacturing facilities in Vista, California and Manno, Switzerland, expanding our capacity to provide high-quality capsule, tablet and powder supplements for an international audience.”

NAI purchased the facility in August 2021 and has spent the past 21 months retrofitting the space with a heavy focus on transferring powder with gravity. The design team utilized every vertical inch to maximize gravity transfer and leverages large containers called super sacks, to transfer powder from one process to the next (i.e., weighing to blending then packaging). This resulted in different ceiling heights for various parts of the plant. For example, the weigh room ceiling height is higher than the packaging room height, although they both are on the ground floor.

Quality was a key priority in the space design and layout. The site has excellent ingredient sampling at receiving and a physical laboratory for on-site evaluation prior to releasing materials to production. Employee Good Manufacturing Practices were well planned. The flow into and out of the plant is supported by a gowning room at the entrance, a de-gowning room for the exit, with an in process gowning room as well. The final packaged product is 100% inspected by an X-ray and check-weigher combination unit to ensure quality prior to casing.

NAI’s dedication to environmental responsibility is noted with a fully integrated building management system (light, HVAC, etc.), high bay lighting motion sensors which effectively cycle on and off based on high ceiling mounted sensors. A maximized solar panel installation is planned in fall 2023.

“A broad NAI team came together to plan and execute this state-of-the-art manufacturing facility—management, engineers, mechanics, and hourly staff—were all involved and supported by our external team of engineers and architects,” shared Kenneth Wolf, President and Chief Operating Officer of NAI. “With over 40 years in the supplement manufacturing industry, our expertise grows stronger every year, supported by quality through proven performance. That’s the NAI difference.”

About NAI:
NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. NAI’s comprehensive partnership approach offers a wide range of innovative nutritional products and services to clients including scientific research, 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 visit www.nai-online.com.

Contact:
Renee Michaelson
Director of Global Marketing
NAI/CarnoSyn^® Brands
(760) 736-7700
[email protected]

CARLSBAD, CA, MAY 17, 2023—CarnoSyn^® Brands and parent company Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), are proud to sponsor Dr. Guilherme G. Artioli and announce that several other leading CarnoSyn^® beta-alanine researchers will be presenting at the American College of Sports Medicine and Exercise Science (ACSM) Annual Meeting and World Congresses Conference in Denver, CO on May 30-June 2, 2023.

Dr. Guilherme G. Artioli, of Manchester Metropolitan University, is a senior researcher and lecturer in physiology. Dr. Artioli has conducted and published 8 clinical studies around SR CarnoSyn^® beta-alanine and carnosine health benefits. His beta-alanine supplementation research highlights include the positive impacts on cardio health, long term safety, and other health benefits beyond exercise physiology.

Dr. Artioli will be joined by other prominent CarnoSyn® research scientists, Drs. Jay Hoffman and Bryan Saunders, presenting at the same symposium, Build Your Base: New Developments on the Use of Buffering Ergogenic Aids, on Thursday, June 1 at 1:30 p.m. In addition, Drs. Jay Hoffman and Ishay Ostfeld will be presenting a thematic research poster, the Role of β-Alanine Ingestion on Cognitive Function, Mood, and Physical Function in Older Adults, on Thursday June 1 at 3:45 p.m. The research poster is based on a clinical study published on February 23, 2023 (Nutrients), which provided the biggest scale of participants with precise experimental designs and showed SR CarnoSyn^® beta-alanine supplementation benefited cognitive function in sedentary older adults. This clinical study was the first conducted with SR CarnoSyn^® beta-alanine 600 milligram tablets, providing 2.4 grams of daily supplementation. The study results indicated improved cognitive function in older adults whose cognitive function at baseline was at or below normal. In addition, results indicated significant depression score reductions using the Geriatric Depression Scale (GDS).

“CarnoSyn^® Brands and NAI are especially proud to be sponsoring Dr. Artioli as he shares his expertise and discoveries at the ACSM symposium,” said Aaron Starr, Vice President, CarnoSyn^® Brands. “As a science-based company, CarnoSyn^® Brands has built a firm network with the top academic researchers across the globe—including Drs. Hoffman, Saunders, and Ostfeld. CarnoSyn^® Brands goes to great lengths to not only verify our product claims via research, but to also sponsor ongoing exploration and examination to better understand the mechanisms behind the functions and benefits for the end user.”

About CarnoSyn^® Brands:
CarnoSyn^® Brands feature two clinically studied, patented ingredients available exclusively from Natural Alternatives International, Inc.: CarnoSyn^® instant release beta-alanine powder and SR CarnoSyn^® sustained release beta-alanine tablets. In 2019, CarnoSyn^® beta-alanine successfully obtained NDI status from the FDA and received Self-Affirmed GRAS (Generally Recognized as Safe) status. SR CarnoSyn^®, an advanced delivery form of CarnoSyn^®, received GRAS affirmation in 2017. The GRAS affirmation allows NAI to broaden their product offerings within the food and beverage industries, including medical and other fortified food products. For more information about CarnoSyn^® in sports nutrition, please visit: www.carnosyn.com. For information on SR CarnoSyn^® in healthy aging and wellness, visit www.srcarnosyn.com.

About NAI:
NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. NAI’s comprehensive partnership approach offers a wide range of innovative nutritional products and services to clients including scientific research, 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 visit www.nai-online.com.

Contact:
Renee Michaelson
Director of Global Marketing
NAI/CarnoSyn^® Brands
(760) 736-7700
[email protected]

CARLSBAD, CALIF., May 15, 2023 /PRNewswire/ — Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, today announced a net loss of $2.4 million, or $0.41 per diluted share, on net sales of $32.7 million for the third quarter of fiscal year 2023 compared to net income of $2.5 million, or $0.41 per diluted share, in the third quarter of the prior fiscal year.

Net sales during the three months ended March 31, 2023, decreased $9.7 million, or 22.8%, to $32.7 million as compared to $42.4 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales decreased 19.3% to $30.4 million. Private-label contract manufacturing sales decreased for most of our customers including two key customers, partially offset by increased sales to our largest customer. The primary driver for our sales decline relates to our customers’ excess on-hand inventory levels associated with softening consumer demand. In addition, many of our customers maintained larger inventory balances during the previous twelve months related to supply constraints and have now begun to release these excess inventory positions associated with improving supply chain conditions. Sales were also negatively impacted by lower average exchange rates applied to sales denominated in Euro as compared to the prior year period.

CarnoSyn^® beta-alanine royalty, licensing and raw material sales revenue decreased 50.6% to $2.3 million during the third quarter of fiscal year 2023, as compared to $4.8 million for the third quarter of fiscal year 2022. This decrease was primarily due to fewer orders from existing customers as a result of market and inflationary factors along with a general slowdown in the Sports Nutrition sales channel. In addition, the three months ended March 31, 2022, included an unusual ramp up of Sports Nutrition sales activity due to easing COVID restrictions on athletic activities with no corresponding factors in the three months ended March 31, 2023.

Net income for the nine months ended March 31, 2023, was $0.5 million, or $0.08 per diluted share, compared to net income of $7.6 million, or $1.22 per diluted share, for the nine months ended March 31, 2022.

Net sales during the nine months ended March 31, 2023, decreased $0.3 million, or 0.3%, to $118.1 million as compared to $118.4 million recorded in the comparable prior year period. During the nine months ended March 31, 2023, private-label contract manufacturing sales increased 7.7% to $113.0 million, while CarnoSyn^® beta-alanine royalty, licensing and raw material sales revenue decreased 62.0% to $5.2 million compared to $13.5 million for the first nine months of fiscal 2022.

While our sales decreased further than anticipated during the third quarter of fiscal 2023, we expect our sales during the fourth quarter of fiscal 2023 will increase as compared to the third quarter.

Based on our current sales order volumes and our customers’ forecasts, we anticipate our fiscal 2023 consolidated net sales will decrease between 10% to 12% compared to fiscal 2022, and we will still generate net operating income for our fourth quarter of fiscal 2023 and for the fiscal year ended June 30, 2023. We believe this decline in near term demand from our customer base is consistent with the overall economic trends in our industry. Changes in sales mix, unfavorable foreign exchange rates, and inflationary factors including increased operational costs, increased labor rates, raw material, freight and supply chain costs are anticipated to negatively impact our near-term financial results.

In March 2023, we implemented a workforce restructuring plan eliminating 32 employee positions, representing approximately 9% of our global workforce. The reduction in workforce impacted all of our global locations and is expected to result in reduced operating expenses of approximately $1.8 million on an annualized basis. During the quarter ended March 31, 2023, we recognized restructuring charges of $449,000, primarily related to severance payments associated with this workforce restructuring plan.

We continue to evaluate further cost reduction opportunities, including working with both suppliers and customers, to mitigate the impact of order reductions and higher operational costs.

As of March 31, 2023, we had cash of $15.6 million and working capital of $40.7 million, compared to $21.8 million and $53.5 million respectively, as of June 30, 2022. As of March 31, 2023, we had $10.9 million available under our line of credit.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “Despite the recent volatility in our industry, we remain optimistic about the long-term growth trends for nutritional supplements. We anticipate continued near term headwinds associated with both the overall macro-economic environment and factors specific to our industry.”

“While we are seeing some normalization with freight costs, these and other costs continue to trend higher than pre-pandemic levels and future operating costs are expected to be impacted by inflationary pressures and are an area of our focus.”

“We continue to aggressively seek opportunities to increase our sales and customer base. I’m excited to report that construction on our new powder manufacturing facility in Carlsbad, California is now complete, and this state-of-the art powder plant began full operations in April 2023.”

An updated investor presentation will be posted to the investor relations page on our website later today (https://www.nai-online.com/our-company/investors/).

NAI, headquartered in Carlsbad, 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 https://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 ability to increase sales to new and existing customers, our future revenue profits and financial condition, 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.

CONTACT – Michael Fortin, Chief Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or [email protected].

Web site: https://www.nai-online.com

CARLSBAD, CA, February 23, 2023—Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), an international leader in custom contract nutritional supplement manufacturing for over four decades, today announced that new research on the cognitive benefits of SR CarnoSyn^® beta-alanine tablets, a patented sustained release delivery system owned by NAI, has been published in Nutrients.

The benefits of CarnoSyn^® Brands’ beta-alanine supplementation on functional performance in older adults has been reported in several prior clinical studies. These human studies have demonstrated that supplementing with CarnoSyn^® beta-alanine can delay fatigue, increase strength, and improve functional performance. Various clinical studies concluded that CarnoSyn^® beta-alanine supplementation is associated with improved executive function and that the anti-inflammatory and antioxidant effects of increased tissue carnosine levels supports improved health in older adults.

This new clinical study provided the biggest scale of participants with precise experimental designs, showing SR CarnoSyn^® beta-alanine supplementation benefits cognitive function in sedentary older adults. This clinical study is also the first conducted with a 600 milligram SR CarnoSyn^® beta-alanine tablet providing 2.4 grams of daily supplementation. The study results indicated improved cognitive function in older adults whose cognitive function at baseline was at or below normal. In addition, results indicated significant depression score reductions using the Geriatric Depression Scale (GDS).

The study included one hundred older adults between the ages of 60-80 who volunteered to participate in this double-blind, randomized controlled study. Any participant who had underlying neurological conditions was not eligible to enroll in the study. All interviews were conducted by a licensed physician. Participants were not permitted to use any additional nutritional supplements for at least six weeks prior to the study.

Before taking their first supplement, participants completed several tests consisting of written questionnaires to assess cognitive function and mood, and a computer-based exam to measure cognitive and executive function. In addition, a series of physical function tests were performed.

Testing occurred prior to supplementation, at the midpoint, and at week ten. Participants were instructed to consume two 600 mg tablets twice per day for the duration of the ten-week study. The SR CarnoSyn^® beta-alanine supplement and the placebo were identical in appearance.

Cognitive and mood measures consisted of cognitive function assessments, including the Montreal Cognitive Assessment (MoCA), the Stroop pattern recognition test, and the Profile of Mood States (POMS). In addition, participants were also asked to complete the Geriatric Depression Scale (GDS) and the Geriatric Anxiety Scale (GAS).

SR CarnoSyn^® has six research studies showing brain health and mood improvement, with numerous benefits for users:

• Improves executive functioning, mental clarity and enhances cognitive process.
• Reduces mental fatigue.
• Supports brain health, cognitive function, and memory.
• Studies show improved attention and task focus in adults.
• Helps boost mental clarity, concentration, and alertness.
• Promotes a healthy response to everyday stress.
• Fosters a more balanced mood and supports a sense of calm.

About CarnoSyn^® Brands:
CarnoSyn^® Brands feature two clinically studied, patented ingredients available exclusively from Natural Alternatives International, Inc.: CarnoSyn^® instant release beta-alanine powder and SR CarnoSyn^® sustained release beta-alanine tablets. In 2019, CarnoSyn^® beta-alanine successfully obtained NDI status from the FDA and received Self-Affirmed GRAS (Generally Recognized as Safe) status. SR CarnoSyn^®, an advanced delivery form of CarnoSyn^®, received GRAS affirmation in 2017. The GRAS affirmation allows NAI to broaden their product offerings within the food and beverage industries, including medical and other fortified food products.

About NAI:
NAI, headquartered in Carlsbad, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. NAI’s comprehensive partnership approach offers a wide range of innovative nutritional products and services to clients including scientific research, 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 visit www.nai-online.com.

For more information, visit: www.srcarnosyn.com

Contact:

Renee Michaelson
Director of Global Marketing
NAI/CarnoSyn^® Brands
(760) 736-7700
[email protected] 

CARLSBAD, Calif., Feb. 8, 2023 /PRNewswire/ — Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, today announced net income of $1.8 million, or $0.31 per diluted share, on net sales of $42.3 million for the second quarter of fiscal year 2023 compared to net income of $1.8 million, or $0.30 per diluted share, in the second quarter of the prior fiscal year.

Net sales during the three months ended December 31, 2022, increased $4.6 million, or 12.1%, to $42.3 million as compared to $37.7 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales increased 21.3% to $40.8 million. Private-label contract manufacturing sales increased primarily due to increased sales to two of our largest customers, partially offset by decreased sales to other customers and lower average exchange rates applied to sales denominated in Euro as compared to the prior year period. Sales backlog for the quarter ended December 31, 2022 was approximately $2.2 million, which was a decrease of approximately $6.0 million from the quarter ended September 30, 2022.

CarnoSyn^® beta-alanine royalty, licensing and raw material sales revenue decreased 64.0% to $1.5 million during the second quarter of fiscal year 2023, as compared to $4.1 million for the second quarter of fiscal year 2022. The decrease in CaronSyn^® beta-alanine royalty, licensing and raw material sales revenue during the second quarter of fiscal 2023 was primarily due to a decrease in orders from existing customers as a result of market and inflationary factors along with a general slowdown in the Sports Nutrition sales channel. Included in the market factors in the three months ended December 31, 2021 was a unique ramp up of Sports Nutrition sales activity due to easing COVID restrictions on athletic activities with no corresponding factors in the three months ended December 31, 2022.

Net income for the six months ended December 31, 2022 was $2.9 million, or $0.49 per diluted share, compared to net income of $5.1 million, or $0.81 per diluted share, for the six months ended December 31, 2021.

Net sales during the six months ended December 31, 2022, increased $9.3 million, or 12.3%, to $85.4 million as compared to $76.1 million recorded in the comparable prior year period. During the six months ended December 31, 2022, private-label contract manufacturing sales increased 22.8% to $82.6 million. CarnoSyn^® beta-alanine royalty, licensing and raw material sales revenue decreased 68.1% to $2.8 million during the first six months of fiscal 2023, as compared to $8.8 million for the first six months of fiscal 2022.

Based on our current sales order volumes and forecasts we have received from our customers, we now anticipate our fiscal year 2023 consolidated net sales will decrease slightly compared to fiscal 2022. We anticipate operating income will be negatively impacted by changes in sales mix, unfavorable foreign exchange rates, and inflationary factors including increased operational costs, increased labor, raw material, freight and supply chain costs. We anticipate the negative effects of these factors will have a more significant impact to our operating income in the second half of fiscal 2023. We are actively evaluating cost reduction opportunities, including working with both suppliers and customers, to mitigate the impact of these higher operational costs on our financial results. There can be no assurance our expectations will result in the currently anticipated net sales or financial results.

As of December 31, 2022, we had cash of $12.8 million and working capital of $44.5 million, compared to $21.8 million and $53.5 million respectively, as of June 30, 2022. As of December 31, 2022, we had $20.0 million available under our line of credit.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “While overall contract manufacturing sales activities remain strong, we continue to face challenges related to sales mix and increased operating costs that will negatively affect our profitability over the next couple of quarters. We continue to navigate the current economic environment which has resulted in inflationary cost increases across all our operating segments, while actively evaluating cost savings initiatives to help offset these impacts.”

“These challenges are not unique to our company as many other companies in our industry along with other industries are facing the same headwinds. Given our strong balance sheet and the long-term tailwinds in the nutritional space, we believe we will be able to weather this storm while still allowing us to seek opportunities for growth. As a management team, our goal of delivering for both our shareholders and customers remains unchanged.”

“Construction on our new powder manufacturing facility in Carlsbad, California is nearly complete, and we still anticipate this state-of-the art powder plant will be operational by the spring of calendar year 2023.”

An updated investor presentation will be posted to the investor relations page on our website later today (https://www.nai-online.com/our-company/investors/).

NAI, headquartered in Carlsbad, 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 https://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 ability to develop, maintain or increase sales to new and existing customers, our ability to attract and retain sufficient labor, COVID-19 and related impacts on the availability of raw materials, our future revenue profits and financial condition, 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.

CONTACT – Michael Fortin, Chief Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or [email protected].

Web site: https://www.nai-online.com

CARLSBAD, Calif., Nov. 9, 2022 /PRNewswire/ — Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, today announced net income of $1.1 million, or $0.18 per diluted share, on net sales of $43.1 million for the first quarter of fiscal year 2023 compared to net income of $3.3 million, or $0.51 per diluted share, in the first quarter of the prior fiscal year.

Net sales during the three months ended September 30, 2022 increased $4.8 million, or 12.5%, to $43.1 million as compared to $38.3 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales increased $8.2 million, a 24.4% increase from the comparable quarter last year. Private-label contract manufacturing sales increased primarily due to higher sales to our two largest customers, partially offset by decreased sales to other smaller customers and lower average exchange rates applied to sales denominated in Euro as compared to the prior year period. Our foreign exchange rates as applied to sales denominated in Euro decreased to a weighted average of 1.12 EUR/USD in the first three months of fiscal 2023 compared to a weighted average of 1.18 EUR/USD during the first three months of fiscal 2022. Sales backlog for the quarter ended September 30, 2022, totaled approximately $8.0 million primarily related to supply chain and logistical constraints.

CarnoSyn^® beta-alanine royalty, licensing and raw material sales revenue decreased 71.5% to $1.4 million during the first quarter of fiscal year 2023, as compared to $4.7 million for the first quarter of fiscal year 2022. The decrease in patent and trademark licensing revenue during the first quarter of fiscal 2022 was primarily due to a decrease in orders from existing customers as a result of market and inflationary factors along with a general slowdown in the Sports Nutrition sales channel. Included in the market factors is the fact that the first three months of fiscal 2022 benefited from a ramp up of Sports Nutrition sales activity due to easing COVID restrictions on athletic activities with no corresponding activity in the first three months of fiscal 2023.

Based on our current sales order volumes and forecasts we have received from our customers, we now anticipate our fiscal 2023 consolidated net sales will be slightly up as compared to fiscal 2022. While sales are expected to increase during fiscal 2023 when compared to fiscal 2022, we anticipate operating income will be negatively impacted by changes in sales mix, unfavorable foreign exchange rates, and inflationary factors including increased operational costs impacted by increased labor, raw material, freight and supply chain costs. We are working with both suppliers and customers to attempt to mitigate the expected negative impact on our fiscal 2023 financial results. There can be no assurances our expectations will result in the currently anticipated increase in net sales and expected operating income levels.

As of September 30, 2022, we had cash of $12.3 million and working capital of $47.6 million compared to $21.8 million and $53.5 million respectively, as of June 30, 2022. As of September 30, 2022, we owed $3.4 million and had $16.6 million available under our line of credit agreement.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “Despite persistent economic headwinds, we are encouraged by the growth in our contract manufacturing sales. However, the continued impact of inflation has and will continue to have a negative impact on our net financial results. We are actively evaluating a variety of cost savings programs in order to preserve margins as much as possible, but these challenges are likely to persist into the near future.”

“Much like many other industries, we believe the dietary supplement industry has entered a period of constrained growth due to the effect inflation is having on consumer behaviors. This inflationary impact appears to have affected the Sports Nutrition Industry most significantly, but there are indications that other areas of the dietary supplement industry are experiencing the same economic pressures. We believe we have a strong core business and this foundation coupled with the strength of our balance sheet will help us weather this economic storm.”

“Construction on our new powder manufacturing facility in Carlsbad, California continues to progress, and we still anticipate this state-of-the art powder plant will be operational by the middle of our fiscal year 2023.”

“We remain committed to delivering value for our shareholders as we repurchased 46,795 shares of our common stock in the first quarter of fiscal 2023 and intend to continue to opportunistically buy back shares in the future. While we see macro challenges across the economy ahead, our team is working hard across all departments to navigate these obstacles, deliver superior service for our customers and drive sales growth and profitability.”

An updated investor presentation will be posted to the investor relations page on our website later today (https://www.nai-online.com/our-company/investors/).

NAI, headquartered in Carlsbad, 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://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 ability to develop, maintain or increase sales to new and existing customers, our ability to attract and retain sufficient labor, COVID-19 and related impacts on the availability of raw materials, our future revenue profits and financial condition, 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.

CONTACT – Michael Fortin, Chief Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or [email protected].

Web site: https://www.nai-online.com