Natural Alternatives 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://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://nai-online.com
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SOURCE Natural Alternatives International, Inc.