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 investor@nai-online.com.
Web site: http://www.nai-online.com
NATURAL
ALTERNATIVES INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF INCOME
|
(In thousands, except
per share data)
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
(Unaudited)
|
|
|
|
Three Months
Ended
|
|
|
|
Six Months
Ended
|
|
|
|
December
31,
|
|
|
|
December
31,
|
|
|
|
2021
|
|
|
|
2020
|
|
|
|
2021
|
|
|
|
2020
|
|
|
NET
SALES
|
$
37,727
|
|
100.0%
|
|
48,083
|
|
100.0%
|
|
76,067
|
|
100.0%
|
|
87,809
|
|
100.0%
|
Cost of goods
sold
|
31,181
|
|
82.6%
|
|
38,409
|
|
79.9%
|
|
61,240
|
|
80.5%
|
|
72,130
|
|
82.1%
|
Gross
profit
|
6,546
|
|
17.4%
|
|
9,674
|
|
20.1%
|
|
14,827
|
|
19.5%
|
|
15,679
|
|
17.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general
& administrative expenses
|
4,145
|
|
11.0%
|
|
4,282
|
|
8.9%
|
|
8,198
|
|
10.8%
|
|
8,202
|
|
9.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
2,401
|
|
6.4%
|
|
5,392
|
|
11.2%
|
|
6,629
|
|
8.7%
|
|
7,477
|
|
8.5%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other expense,
net
|
(9)
|
|
0.0%
|
|
(806)
|
|
-1.7%
|
|
(35)
|
|
0.0%
|
|
(1,127)
|
|
-1.3%
|
INCOME BEFORE
TAXES
|
2,392
|
|
6.3%
|
|
4,586
|
|
9.5%
|
|
6,594
|
|
8.7%
|
|
6,350
|
|
7.2%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
545
|
|
|
|
954
|
|
|
|
1,491
|
|
|
|
460
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$
1,847
|
|
|
|
$
3,632
|
|
|
|
$
5,103
|
|
|
|
$
5,890
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER
COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
$0.30
|
|
|
|
$0.58
|
|
|
|
$0.82
|
|
|
|
$0.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
$0.30
|
|
|
|
$0.57
|
|
|
|
$0.81
|
|
|
|
$0.91
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE
COMMON SHARES OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
6,212
|
|
|
|
6,270
|
|
|
|
6,250
|
|
|
|
6,344
|
|
|
Diluted
|
6,256
|
|
|
|
6,405
|
|
|
|
6,304
|
|
|
|
6,438
|
|
|
NATURAL
ALTERNATIVES INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
(unaudited)
|
|
|
|
December
31,
|
|
June
30,
|
|
2021
|
|
2021
|
|
|
|
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$19,352
|
|
$32,133
|
Accounts receivable,
net
|
15,065
|
|
17,946
|
Inventories,
net
|
31,828
|
|
27,006
|
Other current
assets
|
4,316
|
|
3,263
|
Total current assets
|
70,561
|
|
80,348
|
Property and
equipment, net
|
39,741
|
|
22,271
|
Operating lease
right-of-use assets
|
14,542
|
|
15,877
|
Other noncurrent
assets, net
|
2,514
|
|
1,785
|
Total Assets
|
$127,358
|
|
$120,281
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Accounts payable and
accrued liabilities
|
17,874
|
|
23,717
|
Mortgage note
payable
|
9,932
|
|
-
|
Long-term liability -
operating leases
|
15,151
|
|
16,481
|
Total Liabilities
|
42,957
|
|
40,198
|
Stockholders'
Equity
|
84,401
|
|
80,083
|
Total Liabilities and Stockholders' Equity
|
$127,358
|
|
$120,281
|
View original
content:https://www.prnewswire.com/news-releases/natural-alternatives-international-inc-announces-2022-q2-and-ytd-results-301479169.html
SOURCE Natural Alternatives International, Inc.