Natural Alternatives International, Inc. Announces 2019 Q1 Results

– Net Sales increase 30% compared to the first quarter of the prior year
– Net Income and EPS increase over 75% compared to the first quarter of the prior year

CARLSBAD, Calif., Nov. 13, 2018 /PRNewswire/ — Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $2.6 million, or $0.37 per diluted share, on net sales of $36.5 million for the quarter ended September 30, 2018

Net sales during the three months ended September 30, 2018 increased $8.5 million, or 30.1%, from $28.1 million recorded in the comparable prior year period. For the quarter ended September 30, 2018, private label contract manufacturing sales increased $8.9 million, or 39.9%, from the comparable quarter last year. First quarter contract manufacturing sales increased primarily due to the sale of new products to existing customers and higher volumes of current products to existing customers. The increase in sales included shipment of new products and increased sales of existing products to our largest customer under our previously announced expanded relationship.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 6.9% to $5.4 million during the first quarter of fiscal 2019, as compared to $5.9 million for the first quarter of fiscal 2018. The decrease in CarnoSyn® revenue was primarily due to lower average material sales prices.

Net income for our first quarter of fiscal 2019 was $2.6 million, or $0.37 per diluted share, compared to net income of $1.4 million, or $0.21 per diluted share, in the first quarter of fiscal 2018. The increase in net income is primarily due to increased private label contract manufacturing sales, favorable interest income associated with our foreign currency hedging program, and a lower effective tax rate associated with the Tax Cuts and Jobs Act enacted in December 2017.

As of September 30, 2018, NAI had cash of $27.6 million and working capital of $54.5 million compared to $23.6 million and $50.9 million, respectively, as of June 30, 2018. As of September 30, 2018, we had $10.0 million available under our line of credit agreement.

Mark A. Le Doux, Chairman and Chief Executive Officer stated, “As anticipated, we have experienced growth in existing markets and are beginning to see new revenue sources from new customers to complement our core customers. More and more companies recognize the true value-add that NAI brings as a manufacturing partner, not only in production of dietary supplements, but in applying the discipline of sound research in formulating, applying rigorous standards in product and pilot development, and using our many years of experience in sourcing the finest ingredients to deploy for our customers, assuring quality and consistency.”

“We have added seasoned personnel with great reputations into our business at a variety of levels, and are excited at the prospects for entering new channels of commerce with our robust intellectual property estate surrounding sustained release CarnoSyn® beta-alanine. We continue to provide leadership for the natural products industry by continuing to advance the efforts of the Supplement Safety Compliance Initiative, which seeks to solidify consumer trust in our products and which is led by major retailers with huge footprints in this industry, while also serving the members of the Natural Products Association in Washington D.C. at the Board of Director level. With the latest election results, there will be much opportunity for discussion as we seek to educate the newest members of Congress on the virtues of preventive approaches to disease development, and the significant benefit to the nation in terms of reduction of cost to the health care system and the taxpayer.”

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 future revenue profits and financial condition, our ability to maintain our patents, generate revenues from the commercialization of our patents and trademarks, secure compliance with our intellectual property rights, and develop, maintain or increase sales to new and existing customers, as well as future economic conditions and the impact of such conditions on our business. We wish to caution readers that 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

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SOURCE Natural Alternatives International, Inc.

Natural Alternatives International Announces New Website Launch To Support Market Expansion Initiative into Healthy Aging & Everyday Wellness

CARLSBAD, Calif., Nov. 5, 2018 /PRNewswire/ — Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII) is pleased to announce the launch of a new website to promote the SR CarnoSyn® beta-alanine market expansion into the healthy aging and general wellness markets. The newly designed website offers insightful information on the top five health benefits of SR CarnoSyn®, research, product formats, FAQs and contact information.

NAI will debut the healthy aging & wellness expansion at SupplySide West in Las Vegas, November 8-9, 2018. Dr. Jay Hoffman will be a featured guest at NAI’s booth #4933 on November 8th, from 10:00 am – 12:00 pm, and will be available to speak to industry contacts who are seeking to learn more about the latest advances with SR CarnoSyn® in the general wellness and healthy aging.

“We are excited about our new website launch and supporting sales collateral,” stated Nicole Burbank, CarnoSyn® Brands Vice President. “NAI is aggressively pursuing partnerships with key players in the general wellness and healthy aging markets to provide unique SR CarnoSyn® product offerings to the supplement and specialty food categories. SupplySide West will provide a good starting point for this endeavor.”

The new website has a clean, modern design and will allow visitors to have a very informative experience as the brand continues to grow and increase market presence. NAI invites visitors to explore the website and to sign up for direct emails from the company at www.srcarnosyn.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 the sports nutrition segment, both ingredients are well known to deliver benefits for athletic performance: Increased strength, enhanced endurance, faster recovery, and greater mental focus.

SR CarnoSyn® is an advanced delivery form of CarnoSyn®, which delivers higher dosing levels of beta-alanine, and is proven to provide benefits for both brain health and muscle function and capacity. In 2017, SR CarnoSyn® was determined to be safe through independent scientific procedures, thus satisfying the technical element of the Generally Recognized as Safe (GRAS) determination. The GRAS affirmation allows NAI to broaden their product offerings beyond the sports nutrition space and focus on the dietary supplement and food and beverage industries, including medical and other fortified food products.

CarnoSyn® and SR CarnoSyn® are ultra-pure amino acids and banned substance free, backed by NAI’s commitment to the highest quality, potency, and manufacturing standards. For more information about CarnoSyn® and SR CarnoSyn®, please visit www.carnosyn.com and 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 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 visit 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 future revenue profits and financial condition, our ability to maintain our patents, generate revenues from the commercialization of our patents and trademarks, secure compliance with our intellectual property rights, and develop, maintain or increase sales to new and existing customers, as well as future economic conditions and the impact of such conditions on our business. We wish to caution readers that 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:
Renee Michaelson, CarnoSyn® Marketing Manager, Natural Alternatives International, Inc., at 760-736-7700 or [email protected].
Website: http://www.carnosyn.com and http://www.nai-online.com

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SOURCE Natural Alternatives International, Inc.

Natural Alternatives International, Inc. Announces Fiscal 2018 and Q4 Results

– Fourth quarter fiscal 2018 Net Sales increase 22% compared to the fourth quarter of fiscal 2017
– Fourth quarter fiscal 2018 Net Income and EPS increase over 80% compared to the fourth quarter of fiscal 2017

CARLSBAD, Calif., Sept. 19, 2018 /PRNewswire/ — Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $2.9 million, or $0.41 per diluted share, on net sales of $39.2 million for the quarter ended June 30, 2018. This represents an increase of $0.18 per diluted share as compared to the same quarter in fiscal 2017 and was primarily attributable to increased private label contract manufacturing sales, reduced legal expenses associated with our CarnoSyn® beta-alanine business, and favorable other income associated with our foreign currency hedging program, partially offset by lower CarnoSyn® beta-alanine sales. Quarterly results were also favorably impacted by one-time tax amounts recorded in connection with revisions to our estimates associated with the Tax Cuts and Jobs Act (the “Act”) that was enacted on December 22, 2017. These one-time adjustments totaled $0.2 million, or approximately $0.03 per diluted share. Excluding these one-time tax items, our adjusted net income during the fourth quarter of fiscal 2018 was $2.7 million, or $0.38 per diluted share.

Net sales during the three months ended June 30, 2018 increased $7.0 million, or 21.8%, from $32.2 million recorded in the comparable prior year period. For the quarter ended June 30, 2018, private label contract manufacturing sales increased $8.5 million, or 33.8%, from the comparable quarter last year. Fourth quarter contract manufacturing sales increased primarily due to sales to Asian and European markets returning to historical levels and an increase in sales to our largest customer, including shipment of new products under our previously announced expanded relationship.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 21.6% to $5.4 million during the fourth quarter of fiscal 2018 as compared to $6.9 million for the fourth quarter of fiscal 2017. The decrease in CarnoSyn® revenue was primarily due to decreased beta-alanine shipments as a result of market and seasonal factors and lower average beta-alanine sales prices.

Net sales during fiscal 2018 increased $10.5 million to $132.4 million, or 8.6%, from $121.9 million recorded in the comparable prior year period. Fiscal 2018 private label contract manufacturing net sales increased $16.0 million, or 16.8%, from the comparable period last year. The increase was primarily related to the sale of new products to existing customers and higher volumes of current products to existing customers located primarily in U.S., Asian, and European markets. These increases were partially offset by discontinued U.S. customer relationships. The increase in sales included shipment of new products and increased sales of existing products to our largest customer under our previously announced expanded relationship.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 20.3% to $21.4 million during fiscal 2018 as compared to $26.9 million for fiscal 2017. The decrease in CarnoSyn® revenue was primarily due to decreased beta-alanine shipments as a result of market and seasonal factors and lower average beta-alanine sales prices. During the quarter ended December 31, 2017, sports nutrition retail market conditions declined most notably in the older “brick and mortar” sales channels as products transitioned to higher levels of internet based sales. This transition resulted in excess inventory in certain channels and delayed the re-order rates for many of our customer brands. Additionally, while we still have active patents covering instant release CarnoSyn® beta-alanine, we experienced increased competition from companies selling generic beta-alanine beginning in the second quarter of fiscal 2018, resulting in certain customers discontinuing the use of our CarnoSyn® beta-alanine. To offset this decline, and in addition to legal actions we have prosecuted and others we may institute, we have increased our sales and marketing activities to consumers, customers, potential customers, and brand owners on multiple platforms to promote and reinforce the features and benefits of utilizing CarnoSyn® beta-alanine. During the second half of fiscal 2018, our re-order rates improved and reached near historical levels, suggesting to us both improved sports nutrition retail market conditions and potentially a positive impact from our marketing activities. Additionally, our SR CarnoSyn® product and raw material sales continued to rise as more brands adopted product offerings of this sustained release delivery system. There can be no assurance our sales and marketing efforts or the recent apparent improvement in retail market conditions will continue.

Net income for fiscal 2018 was $5.1 million, or $0.73 per diluted share, compared to net income of $7.2 million, or $1.09 per diluted share, in the comparable prior year period. Our 2018 results were unfavorably impacted by one-time tax expenses recorded in connection with the revised U.S. tax code. These one-time charges totaled $3.0 million, or approximately $0.44 per diluted share. Excluding these one-time tax items, our adjusted net income during fiscal 2018 was $8.1 million, or $1.17 per diluted share. The increase in net income adjusted for one-time tax adjustments is primarily due to increased private label contract manufacturing net sales, favorable other income associated with our foreign currency hedging program, and a lower effective tax rate associated with the tax reform, partially offset by decreased CarnoSyn® beta-alanine sales.

As of June 30, 2018, NAI had cash of $23.6 million and working capital of $50.9 million compared to $27.8 million and $41.4 million, respectively, as of June 30, 2017. As of June 30, 2018, we had $10.0 million available under our line of credit agreement.

Mark A. Le Doux, Chairman and Chief Executive Officer stated, “Fiscal Year 2018 was a record year in sales for NAI. As we enter fiscal 2019, we are planning for continued growth in our existing markets and anticipate new revenue sources as we expand our footprint in the natural products industry. We are forecasting growth with current relationships and a continued expansion of our client base with an emphasis on high-quality consumer products delivering exceptional value.”

“We continue adding talented people into our businesses, with the experience and gravitas to expand our CarnoSyn® Brands reach into the wellness markets, the health care practitioner space, clinics and other sales channels, while continuing to find ways to innovate based on sound science and ethical business principles.”

“Our solid financial strength and ability to generate significant cash flow should provide us ample opportunities to facilitate our growth objectives in fiscal 2019 and beyond. I am deeply grateful to my team of professionals for their continued dedication and focus, helping us reach new heights in sales and profitability as we seek to enrich the world through the best of nutrition.”

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 future revenue profits and financial condition, our ability to maintain our patents, generate revenues from the commercialization of our patents and trademarks, secure compliance with our intellectual property rights, and develop, maintain or increase sales to new and existing customers, as well as future economic conditions and the impact of such conditions on our business. We wish to caution readers that 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

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SOURCE Natural Alternatives International, Inc.

Natural Alternatives International, Inc. Announces Fiscal 2018 Q3 Results

CARLSBAD, Calif., May 14, 2018 /PRNewswire/ — Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $2.1 million, or $0.30 per diluted share, on net sales of $31.8 million for the quarter ended March 31, 2018.

Net income for the third quarter of fiscal 2018 was $2.1 million, or $0.30 per diluted share, compared to net income of $0.7 million, or $0.11 per diluted share, in the comparable prior year period.  This increase was primarily attributable to growth in net sales associated with our private label contract manufacturing business.

Net sales during the three months ended March 31, 2018 increased $6.7 million, or 26.6%, from $25.1 million recorded in the comparable prior year period.  For the quarter ended March 31, 2018, private label contract manufacturing sales increased $7.1 million, or 38.3%, from the comparable quarter last year. Third quarter contract manufacturing sales increased primarily due to sales to Asian and European markets returning to historical levels and an increase in sales to our largest customer including shipment of new products under our previously announced expanded relationship.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 6.4% to $6.2 million during the third quarter of fiscal 2018 as compared to $6.6 million for the third quarter of fiscal 2017.  On a trailing quarter basis, CarnoSyn® beta-alanine royalty, licensing and raw material sales increased 55.0%, or $2.2 million, during the third quarter of fiscal 2018 as compared to the second quarter of fiscal 2018.  During our third quarter ending March 31, 2018, re-order rates improved for many of our customer brands. Additionally, our SR CarnoSyn® raw material sales continued to increase during the third quarter of fiscal 2018 as more brands adopted product offerings using our proprietary and effective sustained release delivery system.

Net sales during the nine months ended March 31, 2018 increased $3.5 million to $93.2 million, or 3.9%, from $89.8 million recorded in the comparable prior year period.  For the nine months ended March 31, 2018, private label contract manufacturing sales increased $7.4 million, or 10.7%, from the comparable period last year. The increase was primarily due to higher volumes of current products to existing customers located in Asian and European markets and shipment of new products under our previously announced expanded relationship with our largest customer.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 19.9% to $16.0 million during the first nine months of fiscal 2018 as compared to $20.0 million for the comparable prior year period.

Net income for the first nine months of fiscal 2018 was $2.2 million, or $0.32 per diluted share, compared to net income of $5.7 million, or $0.86 per diluted share, in the comparable prior year period. Our year-to-date fiscal 2018 results were unfavorably impacted by one-time tax expense recorded in connection with the revised U.S. tax code.  These one-time charges totaled $3.3 million, or approximately $0.47 per diluted share.  Excluding these one-time tax items, our adjusted net income during the first nine months of fiscal 2018 was $5.4 million, or $0.79 per diluted share.  Other than the one time tax expense the decrease in adjusted net income was primarily attributable to increased selling, general & administrative expenses from our patent and trademark licensing segment and increased marketing, advertising, and research and development costs supporting our CarnoSyn® and SR CarnoSyn® brands. These cost increases were partially offset by a reduction in patent litigation costs and increased gross profit from increased sales.

As of March 31, 2018, NAI had cash of $27.6 million and working capital of $45.3 million compared to $27.8 million and $41.4 million, respectively, as of June 30, 2017.  As of March 31, 2018, we had $10.0 million available under our line of credit agreement.

Mark A. Le Doux, Chairman and Chief Executive Officer stated, “Our investment in the expansion of market awareness of CarnoSyn® in addition to our commitment to ongoing research has born the anticipated positive results with a return to a more normal level of sales for this remarkable product. The recent success of our ‘team’ of supported athletes with four of the five sponsored athletes developing relationships with NFL teams during the NFL Draft demonstrates the intrinsic value of the correct supplementation of CarnoSyn®. The enhanced performance metrics achieved with this safe and legal supplement speaks volumes to athletes of all ages and aspirations.

“Equally gratifying was the growth experienced in our custom contract manufacturing business both in the US and in Switzerland. Continued expansion of customer needs in Australasia, Europe and North America have engendered revenue growth.  We expect this trend to continue with the normal potential for some seasonality to emerge in later periods. The larger progression we believe is occurring in our industry is a shift by quality conscious consumer brands to highly qualified and financially stable producer partners with the types of domestic and international quality certifications and capability uniquely found at NAI.  Our inventories increased in the period as these materials will be necessary to meet expanded demand in our system.”

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 future revenue profits and financial condition, our ability to maintain our patents, generate revenues from the commercialization of our patents and trademarks, secure compliance with our intellectual property rights, and develop, maintain or increase sales to new and existing customers, 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

Natural Alternatives International, Inc. Announces Fiscal 2018 Q2 Results

CARLSBAD, Calif., Feb. 13, 2018 /PRNewswire/ — Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced a net loss of $1.3 million, or $0.20 per diluted share, on net sales of $33.3 million for the quarter ended December 31, 2017.  Quarterly results were unfavorably impacted by one-time tax expense amounts recorded in connection with the Tax Cuts and Jobs Act (the “Act”) that was enacted on December 22, 2017.  These one-time charges totaled $3.3 million, or approximately $0.49 per diluted share.  Excluding these one-time tax items, our adjusted net income during the second quarter of fiscal 2018 was $1.9 million, or $0.29 per diluted share.

Net sales during the three months ended December 31, 2017 increased $2.8 million, or 9.1%, from $30.6 million recorded in the comparable prior year period.  For the quarter ended December 31, 2017, private label contract manufacturing sales increased $5.5 million, or 23.0%, from the comparable quarter last year.  Our second quarter fiscal 2018 contract manufacturing sales increased primarily due to an increase in sales to our largest customer to historical levels and shipment of new products under our previously announced expanded relationship with the same customer.  Additionally, we experienced increased sales of current products to other existing customers partially offset by the timing and shipment of orders of current products to existing customers and discontinued customer relationships.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 40.6% to $4.0 million during the second quarter of fiscal 2018 as compared to $6.7 million for the second quarter of fiscal 2017.  The decrease in beta-alanine revenue was primarily due to decreased material shipments as a result of market and seasonal factors and lower average material sales prices.  During the quarter ended December 31, 2017, the sports nutrition retail market conditions declined most notably in the standard “brick and mortar” sales channels as products transitioned to higher levels of internet based sales.  This transition resulted in excess inventory in certain channels and delayed the re-order rates for many of our customer brands.  To date in our third quarter ending March 31, 2018, our re-order rates have improved for many of our customer brands suggesting improved sports nutrition retail market conditions. Additionally, our SR CarnoSyn® raw material sales have continued to increase during the current quarter as more brands adopted product offerings using this effective delivery system. There can be no assurance our sales and marketing efforts or the recent apparent improvement in retail market conditions will reverse or decelerate potential future declines of our CarnoSyn® beta-alanine sales.

Net sales during the six months ended December 31, 2017 decreased $3.2 million to $61.4 million, or 5.0%, from $64.6 million recorded in the comparable prior year period.  For the six months ended December 31, 2017, private label contract manufacturing sales increased $0.3 million, or 1.0%, from the comparable period last year.  The increase in private label contract manufacturing sales included an 18.8% decrease during our first quarter, primarily from reduced orders from our largest customer for specific products associated with an inventory reduction program, that was offset by a 23.0% increase in sales during our second quarter primarily due to the increase in sales to our largest customer to historical levels and shipment of new products under our previously announced expanded relationship.

CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 26.5% to $9.8 million during the first half of fiscal 2018 as compared to $13.4 million for the comparable prior year period.  The decrease in CarnoSyn® beta-alanine revenue was primarily due to decreased material shipments as a result of market and seasonal factors, and lower average material sales prices.

Net income for the first six months of fiscal 2018 was $0.1 million, or $0.02 per diluted share, compared to net income of $5.0 million, or $0.74 per diluted share, in the comparable prior year period.  Our year-to-date fiscal 2018 results were unfavorably impacted by one-time tax expense amounts recorded in connection with the Act.  These one-time charges totaled $3.3 million, or approximately $0.48 per diluted share.  Excluding these one-time tax items, our adjusted net income during the first half of fiscal 2018 was $3.4 million, or $0.50 per diluted share.  This decrease was primarily attributable to decreased sales from our patent and trademark licensing segment.

As of December 31, 2017, NAI had cash of $28.8 million and working capital of $43.5 million compared to $27.8 million and $41.4 million, respectively, as of June 30, 2017.  As of December 31, 2017, we had $10.0 million available under our line of credit agreements.

Mark A. Le Doux, Chairman and Chief Executive Officer stated, “While our net income for our second fiscal quarter of 2018 was negatively impacted by one-time expenses as a result of the implementation of the new tax legislation, I am pleased with our pre-tax earnings results and our sequential quarterly profit trend. We believe the decline in our global effective tax rate will have a positive impact on our profitability and cash flow in the future.  Our second quarter of fiscal 2018 also reflected the positive impact of increased and new deliveries from our expanded relationship with our largest customer.

“While brick and mortar locations have suffered significant disruptions due to internet sales co-opting in-person transactions, we are seeing re-order rates of CarnoSyn® trending towards historical levels along with more market adoption of SR CarnoSyn®.  Furthermore, our contract manufacturing expansion in the second quarter bodes well for the balance of this fiscal year.”

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 future revenue profits and financial condition, our ability to maintain our patents, generate revenues from the commercialization of our patents and trademarks, secure compliance with our intellectual property rights, and develop, maintain or increase sales to new and existing customers, 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

 

NAI, Inc Announces Allowance of New US Instant Release Beta-Alanine Patent Application

January 17, 2018 CARLSBAD, CA

 

CARLSBAD, Calif., Jan. 17, 2018 /PRNewswire/ — Natural Alternatives International, Inc. (“NAI”) (NASDAQ: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, announced today that the U.S. Patent and Trademark Office has issued a Notice of Allowance for NAI instant release beta-alanine patent application entitled “Methods And Compositions For Increasing The Anaerobic Working Capacity In Tissues.”  The newly allowed application becomes part of NAI’s global patent estate covering its CarnoSyn® instant release beta-alanine product.

Mark A. LeDoux, NAI’s CEO and Chairman of the Board, said that “this patent provides athletes with important guidance related to increasing muscle carnosine levels and achieving a maintenance level from which the athlete can build as desired over time with varying amounts of beta-alanine supplementation.”  As another important piece to NAI’s global strategy for providing performance increases well beyond those achievable through normal diets, this patent “will insure that athletes have the appropriate information and abilities to adequately reach their competitive goals,” said Mr. LeDoux.  NAI’s allowed claims are directed to methods of delaying muscle fatigue through supplementation with instant release beta-alanine in times and amounts to increase muscle carnosine levels beyond that obtainable through diet alone.  The claimed methods allow for a loading phase and a maintenance phase of supplementation, and allows for further loading after achieving and maintaining a desired level of muscle carnosine.

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 NAI’s 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 its website at http://www.nai-online.com.

This press release contains forward-looking statements within the meaning of applicable securities laws that are not historical facts and information. These statements represent our intentions, expectations and beliefs concerning future events, including, among other things, our expectations and beliefs with respect to our future financial and operating results, the outcome of pending litigation, the continued validity of our patents, and our ability to successfully develop, license and enforce our intellectual property rights. We wish to caution readers these statements involve risks and uncertainties that could cause actual results and outcomes for future periods to differ materially from any forward-looking statement or views expressed herein. NAI’s financial performance and the forward-looking statements contained herein are further qualified by other risks including those set forth from time to time in the documents filed by us with the Securities and Exchange Commission, including our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q.

CONTACT: Kenneth Wolf, President, Natural Alternatives International, Inc., at 760-736-7700 or [email protected]

WEBSITE:  http://www.nai-online.com and http://www.carnosyn.com