Natural Alternatives International, Inc. Announces Fiscal 2016 Q2 Results
SAN MARCOS, Calif., Feb. 9, 2016 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today announced net income of $1.9 million, or $0.28 per diluted share, on net sales of $26.9 million for the quarter ended December 31, 2015.
Net sales during the three months ended December 31, 2015 increased $8.3 million, or 44.5%, from $18.6 million recorded in the same period last year. For the quarter ended December 31, 2015, private label contract manufacturing sales increased $4.9 million, or 29.2%, from the same quarter last year, due primarily to increased volumes of existing products and new product sales to new and existing customers partially offset by unfavorable foreign exchange rates. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 263.0% to $5.3 million during the second quarter of fiscal 2016 as compared to $1.5 million for the second quarter of fiscal 2015. The increase in CarnoSyn® beta-alanine revenue was primarily due to an increase in raw material sales as a result of taking over the direct sale and distribution of CarnoSyn® beta-alanine effective April 1, 2015. Our branded products sales declined to zero in the second quarter of fiscal 2016 as compared to $428,000 for the second quarter of fiscal 2015 due to the discontinuation of the product line effective December 31, 2014.
Net sales during the six months ended December 31, 2015 increased 30.0% to $48.5 million from $37.3 million recorded in the same period last year. For the six months ended December 31, 2015, private label contract manufacturing sales increased $3.7 million, or 10.8%, from the same period last year, due primarily to the timing of product shipments, partially offset by unfavorable foreign exchange rates compared to the prior year. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 338.7% to $10.6 million during the first half of fiscal 2016 as compared to $2.4 million for the same period in fiscal 2015. The increase in CarnoSyn® beta-alanine revenue in the first six months of 2016 was also primarily due to an increase in raw material sales as a result of taking over the direct sale and distribution of CarnoSyn® beta-alanine effective April 1, 2015. Our branded products sales declined to zero in the first half of fiscal 2016 as compared to $697,000 for the same period in fiscal 2015 due to the discontinuation of the product line effective December 31, 2014.
Net income in the first six months of fiscal 2016 was $3.1 million, or $0.46 per diluted share, compared to net income of $1.6 million, or $0.23 per diluted share, in the same period of fiscal 2015. This increase was primarily attributable to improved operational throughput and lower per unit manufacturing costs partially offset by lower average Euro exchange rates related to our private label contract manufacturing segment, and increased CarnoSyn® beta-alanine revenue.
As of December 31, 2015, NAI had cash of $22.6 million and working capital of $37.9 million compared to $18.6 million and $34.5 million, respectively, as of June 30, 2015. As of December 31, 2015, we had $5.5 million available under our line of credit agreements.
Mark A. Le Doux, Chairman and Chief Executive Officer stated, "Our results reported today demonstrate the efforts of a cohesive team of professionals whom I am privileged to lead. For the quarter ended December 31, 2015, our revenues increased to just under $27.0 million from a year earlier performance of $18.6 million. Sales came from a variety of channels, but the significant growth happened in our contract manufacturing segment as many companies upgrade their supply chain partnerships. Sales of our patented CarnoSyn® beta-alanine products continued on track and also contributed positively to our consolidated sales and profitability growth.
"Through capturing more overhead allocation with manufacturing plants running with greater efficiencies, and increased contract manufacturing volumes, NAII was able to demonstrate very good profitability of $0.28 per diluted share for the second quarter of fiscal 2016 and $0.46 for the first half of fiscal 2016. Our facility expansion in Europe continues to plan and we expect to see new production throughput from Switzerland starting in our fourth quarter of fiscal 2016. Growth in the US also remains significant due to our strategic partnerships with large clients in the North American and Australasia markets."
NAI, headquartered in San Marcos, 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 firstname.lastname@example.org.
Web site: http://www.nai-online.com
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SOURCE Natural Alternatives International, Inc.