CARLSBAD, Calif., Nov. 13, 2024 (GLOBE NEWSWIRE) -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, today announced a net loss of $2.0 million, or $0.33 per diluted share, on net sales of $33.2 million for the first quarter of fiscal year 2025 compared to a net loss of $0.7 million, or $0.12 per diluted share, in the first quarter of the prior fiscal year.
Net sales during the three months ended September 30, 2024, decreased $0.8 million, or 2.4%, to $33.2 million as compared to $34.0 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales decreased $1.6 million, a 4.8% decrease from the comparable quarter last year. Private-label contract manufacturing sales decreased primarily due to reduced orders from one of our larger customers, partially offset by increased shipments from a majority of other existing customers and shipments to new customers.
CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 41.6% to $2.5 million during the first quarter of fiscal year 2025, as compared to $1.8 million for the first quarter of fiscal year 2024. The increase in patent and trademark licensing revenue during the first quarter of fiscal 2025 was primarily due to decreased volume rebates and an increase in orders from existing customers.
We experienced a loss from operations during the three months ended September 30, 2024, primarily due to reduced sales and a change in sales mix from our private-label contract manufacturing segment and increased manufacturing costs. Manufacturing costs were negatively impacted by increased labor, supplies, rent, and freight costs. Although our overall sales forecast for fiscal 2025 includes a significant increase in sales as compared to fiscal 2024, we now anticipate we will experience a net loss in the first half of fiscal 2025, net income in the second half of fiscal 2025, and an overall net loss for the fiscal 2025 year.
As of September 30, 2024, we had cash of $10.1 million and working capital of $38.0 million compared to $12.0 million and $38.1 million respectively, as of June 30, 2024. As of September 30, 2024, we had $12.5 million of borrowing capacity on our credit facility of which we had outstanding borrowings of $5.4 million.
Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, "While experiencing recent losses from operations due to anomalies in demand from various markets, I remain encouraged by our efforts to secure additional revenues and commensurate profitability through expanded product offerings and new client relationships. The recent election in the USA has underlined a consumer driven mandate to 'make America Healthy Again.' Such a statement from the likes of Robert F. Kennedy Jr., along with the President Elect demonstrate their desire to eliminate the aggressive suppression of consumer use of nutraceuticals, vitamins, and anything else that advances human health and cannot be patented by Pharma. With a renewed emphasis on becoming healthy and not just treating diseases, our entire industry stands ready to meet the quality standards consumers will demand as they seek to foster their health. We remain committed to working with the new administration in fostering a greater understanding and acceptance of properly made products in this noble effort."
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 future revenue, profits and financial condition, as well as current and 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 investor@nai-online.com.
Web site: https://www.nai-online.com
| NATURAL ALTERNATIVES INTERNATIONAL, INC. | |||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||
| (In thousands, except per share data) | |||||||||||||
| (Unaudited) | |||||||||||||
| Three Months Ended | |||||||||||||
| September 30, | |||||||||||||
| 2024 | 2023 | ||||||||||||
| NET SALES | $ | 33,150 | 100.0 | % | $ | 33,969 | 100.0 | % | |||||
| Cost of goods sold | 30,891 | 93.2 | % | 30,832 | 90.8 | % | |||||||
| Gross profit | 2,259 | 6.8 | % | 3,137 | 9.2 | % | |||||||
| Selling, general & administrative expenses | 4,095 | 12.4 | % | 3,681 | 10.8 | % | |||||||
| LOSS FROM OPERATIONS | (1,836 | ) | -5.5 | % | (544 | ) | -1.6 | % | |||||
| Other expense, net | (577 | ) | -1.7 | % | (340 | ) | -1.0 | % | |||||
| LOSS BEFORE TAXES | (2,413 | ) | -7.3 | % | (884 | ) | -2.6 | % | |||||
| Income tax benefit | (431 | ) | (189 | ) | |||||||||
| NET LOSS | $ | (1,982 | ) | $ | (695 | ) | |||||||
| NET LOSS PER COMMON SHARE: | |||||||||||||
| Basic: | ($0.33 | ) | ($0.12 | ) | |||||||||
| Diluted: | ($0.33 | ) | ($0.12 | ) | |||||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||||
| Basic | 5,919 | 5,850 | |||||||||||
| Diluted | 5,919 | 5,850 | |||||||||||
| NATURAL ALTERNATIVES INTERNATIONAL, INC. | |||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||
| (In thousands) | |||||||
| September 30, | June 30, | ||||||
| 2024 | 2024 | ||||||
| (Unaudited) | |||||||
| ASSETS | |||||||
| Cash and cash equivalents | $ | 10,156 | $ | 11,981 | |||
| Accounts receivable, net | 17,623 | 16,891 | |||||
| Inventories, net | 25,927 | 24,249 | |||||
| Other current assets | 8,775 | 8,489 | |||||
| Total current assets | 62,481 | 61,610 | |||||
| Property and equipment, net | 51,060 | 52,211 | |||||
| Operating lease right-of-use assets | 42,919 | 43,537 | |||||
| Other noncurrent assets, net | 4,810 | 4,984 | |||||
| Total Assets | $ | 161,270 | $ | 162,342 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||
| Accounts payable and accrued liabilities | 17,657 | 19,456 | |||||
| Line of Credit | 5,400 | 3,400 | |||||
| Mortgage note payable | 9,156 | 9,229 | |||||
| Operating lease liability | 48,872 | 47,662 | |||||
| Total Liabilities | 81,085 | 79,747 | |||||
| Stockholders' Equity | 80,185 | 82,595 | |||||
| Total Liabilities and Stockholders' Equity | $ | 161,270 | $ | 162,342 | |||
