News Category: Uncategorized

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 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 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: http://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://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: http://www.nai-online.com

 

 

CARLSBAD, CA, April 21, 2022—Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), an international leader in custom contract nutritional supplement manufacturing for over four decades, announced Aaron Starr has been promoted to Vice President of CarnoSyn^® Brands. In his new role, Starr will be responsible for the leadership of business teams and for overseeing operational performance and the advancement of CarnoSyn^® Brands.

“I am pleased to announce Aaron Starr has been named Vice President of CarnoSyn^® Brands,” said Kenneth Wolf, President and Chief Operating Officer, Natural Alternatives International. “Aaron has been a valued member of our team for many years, directly managing customer relationships and operations and bolstering sales for NAI and CarnoSyn^® Brands. We are excited to see the impact his leadership will have within our organization and with valued customers as he works to develop new and existing opportunities for CarnoSyn^® Brands within the sports nutrition industry as well as the health and wellness business sector.”

As Vice President of CarnoSyn^® Brands, Aaron Starr will oversee overall operating performance and business objectives for the division. Responsibilities include management of P&L, short and long-term strategic planning, sales and marketing management and new product introductions. He will lead teams including sales, marketing, customer service, operations and science, and will drive performance through development and management of strategies to yield profitable performance and exceptional customer service.

Aaron Starr has a wealth of sales, marketing, and operations management experience, most recently as Senior Account Manager and Operations Manager at NAI and CarnoSyn^® Brands. His career also includes roles as Executive Editor and Marketing Director at DailyeDeals.com and as Managing Partner at O’Riordan & Associates/NFP. He earned an MBA in Financial Management from National University, and earned a Bachelor of Science degree, Exercise and Physiology/Kinesiology from Bridgewater State University.

Learn more about NAI at https://www.nai-online.com, and discover more about SR CarnoSyn^® at https://www.srcarnosyn.com or CarnoSyn^® at https://www.carnosyn.com.

About CarnoSyn^® Brands:
CarnoSyn^® Brands feature two clinically studied, patented ingredients available exclusively from Natural Alternatives International, Inc.: CarnoSyn^® instant release beta-alanine and SR CarnoSyn^® sustained release beta-alanine. 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.

— $37.7 million Net Sales, $1.8 million Net Income, $0.30 diluted EPS

CARLSBAD, Calif., Feb. 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 $1.8 million, or $0.30 per diluted share, on net sales of $37.7 million for the second quarter of fiscal year 2022 compared to net income of $3.6 million, or $0.57 per diluted share, in the second quarter of the prior fiscal year.

Net sales during the three months ended December 31, 2021, decreased $10.4 million, or 21.5%, to $37.7 million as compared to $48.1 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales decreased 25.7% to $33.7 million. Private-label contract manufacturing sales decreased primarily due to a 48% reduction in sales to our largest customer, combined with supply chain and labor constraints that negatively affected our production capacity during the quarter. Sales backlog for the quarter ended December 31, 2021 exceeded $12.0 million primarily related to supply chain, labor shortages, and logistical constraints.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 46.9% to $4.1 million during the second quarter of fiscal year 2022, as compared to $2.8 million for the second quarter of fiscal year 2021. The increase in patent and trademark licensing revenue during the second quarter of fiscal 2022 was primarily due to increased shipments to existing customers, combined with sales to new customers, and higher average sales prices. We believe increased sales are largely related to athletic activities and gyms reopening in accordance with easing COVID-19 restrictions across the USA as compared to significant restrictions in such activities in the first and second quarters of fiscal 2021.

Net income for the six months ended December 31, 2021 was $5.1 million, or $0.81 per diluted share, compared to net income of $5.9 million, or $0.91 per diluted share, for the six months ended December 31, 2020.

Net sales during the six months ended December 31, 2021 decreased $11.7 million, or 13.4%, from $87.8 million recorded in the comparable prior year period. For the six months ended December 31, 2021, private-label contract manufacturing sales decreased $15.1 million, or 18.3%, from the comparable period last year. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 61.8% to $8.8 million during the first six months of fiscal 2022, as compared to $5.4 million for the first six months of fiscal 2021.

Based on our current sales order volumes and forecasts we have received from our customers, along with the continued challenges with supply chain and staffing shortages, including challenges from COVID-19 absences, we now anticipate our fiscal 2022 consolidated net sales will be flat to slightly up as compared to fiscal 2021. We also anticipate we will generate operating income between 8.0% and 11.0% of net sales for our fiscal year ending June 30, 2022. As we previously estimated it would, sales and profitability during the first half of fiscal 2022 declined when compared to the same period of fiscal 2021 primarily related to lower sales to our largest contract manufacturing customer. During the second half of fiscal 2022, we expect net sales to increase 10.0% to 13.0% as compared to the same period in fiscal 2021, and operating income to increase to between 8.0% and 11.0% of net sales. The improvement in net sales and operating profitability is expected to be generated from continued growth from sales and improved sales mix and staffing levels.

As of December 31, 2021, we had cash of $19.4 million and working capital of $54.1 million, compared to $32.1 million and $58.3 million respectively, as of June 30, 2021. As of December 31, 2021, we had $20.0 million available under our line of credit agreement.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “Our results for the second quarter and first half of fiscal 2022 were in line with our expectations despite continuing supply chain and labor challenges in addition to a decline in sales to our largest customer. Our backlog going into the third quarter remains strong and we are working hard to add staff in order to support our anticipated sales growth in the second half of the year while also maneuvering the daily reality of COVID-19. We also brought online new blending capacity in our Vista, CA plant that will increase our operational throughput and is necessary to support current demand and future growth expectations.”

“We believe our balance sheet is still a significant strength for us and we will continue to utilize our recently increased stock buyback program as long as our stock trades at levels we believe are below the true value of our Company.”

“While our expected growth in the second half of the year is not as robust as we previously anticipated, we still see significant opportunities with both existing and new customers. Our team is working hard to navigate these near-term challenges and position the Company for long term 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://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: http://www.nai-online.com

 

 

Carlsbad, Calif., January 18, 2022 /PRNewswire/ — Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced its Board of Directors authorized a $3.0 million increase to its stock repurchase plan bringing the total plan authorized repurchase amount to
$18.0 million. Under the repurchase plan, NAI may, from time to time, purchase shares of its common stock, depending upon market conditions, in open market or privately negotiated transactions. To date, we have purchased 1.9 million shares under this repurchase plan, including the purchase of 237,000 shares since September 30, 2021, and after this increase we will have
$3.0 million available for stock repurchases under the plan.

Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “Since the inception of our stock repurchase plan, we have purchased our shares at an average cost of less than $8 per share. We believe our stock continues to trade at levels significantly below the fair value of our company and we have increased our buyback authority to allow us to continue to purchase our shares. Our management team remains confident in our long-term success and the growth potential of our business. We have expanded our customer base over the last year, and work continues on our new manufacturing and warehouse facility in Carlsbad, CA that we anticipate will be fully operational in the Fall of 2022.”

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://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, the fair value of our company, the growth potential of our business, our ability to acquire our shares on a reasonable basis, development of our new manufacturing and warehouse facility, 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: http://www.nai-online.com/ 

Jennifer Grebow
Nutritional Outlook
The beta-alanine market is primed for growth, bolstered by consumers’ increased focus on health and wellness in the wake of the COVID-19 pandemic, the company said.

The beta-alanine market is primed for growth, bolstered by consumers’ increased focus on health and wellness in the wake of the COVID-19 pandemic, said Mark LeDoux, CEO and chairman of the board of directors for Natural Alternatives International Inc. (NAI; Carlsbad, CA), during the SupplySide West trade show. This bodes well for NAI’s flagship CarnoSyn and SR CarnoSyn beta-alanine ingredients, which LeDoux said he expects to see significant business gains for in both the sports nutrition and healthy aging markets moving forward.

“CarnoSyn has had a wonderful run of late,” said LeDoux at the show, “and I think it’s only going to get started again.” CarnoSyn, like many sports nutrition ingredients, saw sales decline last year when gyms closed—but not for long, said LeDoux. “Once the gyms started opening in different venues, we’ve seen a very good uptake again in revenue,” he said, “and we think that’s only going to grow.”

The healthy aging market looks promising for SR CarnoSyn, which is a sustained-release version of CarnoSyn designed for the healthy aging market and providing benefits for muscle function, brain health, heart health, bone health, and systemic health, among others.

Consumers’ increased focused on health and wellness post-COVID is a boon for SR CarnoSyn. “The adoption of material into the healthy living space is really getting interesting,” said LeDoux, “and we think within the next year, it’s going to grab some serious momentum. We think calendar year 2022 is going to be quite dramatic when it comes to SR CarnoSyn.”

The growing aging demographic globally will play a role, and so will the pandemic. One of the things the pandemic has done—“pretty much globally”—LeDoux said, is “reinforced the people’s intuition that taking supplements is not a luxury; it’s a necessity.”

Part of NAI’s focus is now on expanding delivery formats for SR CarnoSyn, which include a tablet and a powder.

Growing Pros—and Pains

The contract manufacturing side of NAI’s business is experiencing the same overwhelming growth seen throughout the dietary supplements industry especially during the pandemic. Since the pandemic started, said LeDoux, NAI’s sales “were up 100%.”

“I mean, our forecast this year is almost meaningless at this point because we took that snapshot three months ago,” he added. “When we release earnings in a couple of weeks, we’re going to have to adjust it again.”

That said, like businesses within and outside of the supplements industry, NAI isn’t immune to the worldwide labor shortages and supply chain problems. But LeDoux said his team is working out the challenges.

“Every supplements supplier I’ve talked to in the last few weeks is suffering the same problem,” he said. “It’s not so much lack of material, although there are some spot shortages of hard-to-get ingredients that are seasonal. It’s lack of staff. Lack of personnel. Now, if you’re just running 9-5, five days a week, you’re probably doing fairly well, but you’re also not experiencing the same growth that most of the industry in our area is experiencing. We could run our plants 24/7 for the foreseeable future and in about nine months we might catch up. And that’s the reality of it.”

Between NAI’s facilities, including in Carlsbad, CA, and Switzerland, the company employs hundreds of staff. It also plans to open a new facility next year that LeDoux said “will generate millions of dollars’ worth of product.” For now, the company is looking to offer employment opportunities to repatriated veterans in the U.S., and it may temporarily shift some employees between sites, including from Switzerland. “We have the benefit of having a really nice facility in Switzerland, and they don’t have labor shortages in Switzerland,” said LeDoux. “In fact, we have a labor surplus.”

Source: Nutritional Outlook

• 2022 Q1: $38.3 million Net Sales, $3.3 million Net Income, $0.51 diluted EPS

CARLSBAD, CALIF, November 9, 2021 /PRNewswire/ –Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, today announced net income of $3.3 million, or $0.51 per diluted share, on net sales of $38.3 million for the first quarter of fiscal year 2022 compared to net income of $2.3 million, or $0.35 per diluted share, in the first quarter of the prior fiscal year.

Net sales during the three months ended September 30, 2021 decreased $1.4 million, or 3.5%, to $38.3 million as compared to $39.7 million recorded in the comparable prior year period.  During the same period, private-label contract manufacturing sales decreased to $33.6 million, a 9.3% decrease from the comparable quarter last year. Private-label contract manufacturing sales decreased primarily due to a 45% decrease in sales to our largest customer primarily associated with their European markets. This sales decline was largely offset by  increased sales to new and existing customers including significant sales from a new customer operating in the direct-to-consumer marketplace. Sales backlog for the quarter ended September 30, 2021 exceeded $8.0 million and was primarily related to supply chain and logistical constraints.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 77.1% to $4.7 million during the first quarter of fiscal year 2022, as compared to $2.7 million for the first quarter of fiscal year 2021. The increase in patent and trademark licensing revenue during the first quarter of fiscal 2022 was primarily due to increased shipments to existing customers related to athletic activities and gyms reopening in accordance with easing COVID-19 restrictions across the USA as compared to significant restrictions in athletic activities in the first quarter of fiscal 2021 combined with sales to new customers and higher average sales prices.

Based on our current sales order volumes, backlog and forecasts we have received from our customers; we now anticipate our fiscal year 2022 consolidated net sales will increase between 7.0% and 10.0% as compared to fiscal year 2021. We also now anticipate we will generate operating income between 10.0% and 13.0% of net sales for our fiscal year ending June 30, 2022. Sales and profitability during the first half of fiscal 2022 are anticipated to decline when compared to the same period of fiscal 2021. Our expectations for the first half of fiscal 2022 are being driven by continuing supply chain, labor, and logistical constraints, all of which are expected to result in a backlog of existing orders that may not be fully cleared until the second half of fiscal 2022. We currently anticipate these supply chain and manufacturing challenges will mostly resolve themselves during the second half of fiscal 2022. As a result, we expect sales and profitability in the second half of fiscal 2022 to exceed the comparable period in fiscal 2021, with the overall fiscal 2022 results reflecting an increase in both sales and profitability on a full year basis.

As of September 30, 2021, we had cash of $20.0 million and working capital of $54.6 million compared to $32.1 million and $58.3 million respectively, as of June 30, 2021. As of September 30, 2021, 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 a decline in sales from our largest customer, we have been able to make significant progress in growing our business with other customers in a variety of channels, including the recent acquisition of a new direct to consumer based customer we expect will help drive significant future growth for our company.  We believe the dietary supplement industry is in a period of meaningful growth, and we find ourselves in the enviable position where we are able to capitalize on new opportunities leveraging our reputation of quality and integrity along with our available equipment capacity supported by the strength of our balance sheet.”

“We continue to navigate challenges related to supply chain and staffing that have resulted in larger than normal backlog, but we believe we will be able to overcome these challenges by the end of this calendar year. Our investments related to securing adequate supplies of inventory and labor are expected to pay dividends in the second half of our current fiscal year.”

“We believe our favorable profitability as a percentage of sales is a trend that will be fully realized on a full year basis supported by improved customer mix, capacity utilization, favorable currency translation on foreign sales, and improved contribution from our CarnoSyn® business.”

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://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.

SOURCE – Natural Alternatives International, Inc.

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

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

 

CARLSBAD, Calif., Nov. 3, 2021 /PRNewswire/ — Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAIi), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced that it will release its first quarter 2022 financial results on Tuesday, November 9, 2021 after the market close. An updated investor presentation will be available on the investor relations tab of the Company’s website after the release.

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://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 regarding the release of our first quarter earnings. 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. NAl’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: http://www.nai-online.com

Natural Alternatives International, Inc. (“NAI”), an international leader in custom contract nutritional supplement manufacturing for over four decades, is inviting SupplySide West (SSW) attendees to visit booth #5472 and learn more about how the team can help brand partners create and deliver the next best-selling nutritional supplement.

NAI applies a science-based approach to help clients design customized nutritional products to meet their unique needs, and is the exclusive provider of CarnoSyn^® and SR CarnoSyn^® beta-alanine–the only patented beta-alanine on the market–offering enhanced performance for sports nutrition, everyday wellness and healthy aging benefits for all.

“Our team is very excited to have the opportunity to meet in person with SupplySide West attendees,” said Renee Michaelson, Director of Global Marketing, Natural Alternatives International, Inc. and CarnoSyn^® Brands. “Now more than ever, consumers are focusing on their health and wellness, seeking new solutions to help them stay proactive when it comes to strengthening their bodies, their immune system and balancing their mood. And that’s where CarnoSyn^® and SR CarnoSyn^® can provide support.”

NAI will highlight several key solutions at SSW, including:

• NAI Contract Manufacturing – over 40 years’ experience providing the highest standards for quality, purity and safety.
• SR CarnoSyn^® for Wellness & Healthy Aging – a patented and branded turnkey tablet solution to quickly bring new products to market.
• CarnoSyn^® for Sports Nutrition – scientifically-proven to achieve top performance in strength, speed, stamina and recovery.

“We are also celebrating with our team while at SupplySide West this year,” said Mark LeDoux, Chairman and CEO, Natural Alternatives International, Inc. “I am extremely proud to share that NAI recently became the first company to meet new safety and benchmarking standards created by the Supplement Safety & Compliance Initiative (SSCI).”

This follows more than a five-year effort by the world’s leading nutritional supplement retailers–including Walmart and GNC–in collaboration with the Natural Products Association (NPA) and its members, to set globally harmonized benchmarking standards for natural products. Some of the world’s largest nutritional supplement retailers have acknowledged SSCI as a benchmarking standard that companies must meet in order to sell products on their platforms.

“SSCI certification reflects the stringent dedication to quality, purity and safety NAI shows with each of our customer’s projects,” said LeDoux. “Our goal is that our partners have no need to worry about the safety and efficacy of their brands.”

“NAI is committed to changing the approach to manufacturing natural supplements worldwide, which we support with our global footprint with offices and manufacturing facilities in the United States and Switzerland,” added LeDoux. “We recently expanded our US manufacturing capabilities and further built out our footprint with the purchase of a new manufacturing and warehouse facility in Carlsbad, CA. Once this new facility is fully built-out, it will provide NAI with state-of-the-art high speed powder production capabilities. Powder packaged delivery systems are a growing segment within our industry and this facility will provide us with the ability to better service existing customers, attract new customers, expand our sales, and provide potential for channel and customer diversification.”

SupplySide West is a great opportunity to learn more by visiting booth #5472, or visit NAI’s website at https://www.nai-online.com, and discover more about SR CarnoSyn^® at https://www.srcarnosyn.com or CarnoSyn^® at https://www.carnosyn.com.