SAN MARCOS, Calif., Nov. 13 /PRNewswire-FirstCall/ -- Natural Alternatives
International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer
and marketer of customized nutritional supplements, today announced a net loss
from continuing operations of $349,000 or $0.05 per share on net sales from
continuing operations of $19.5 million for the quarter ended September 30,
2008.
The net sales from continuing operations of $19.5 million in the first
quarter represented a decrease of $3.4 million or 14.8% from $22.9 million in
the comparable prior year quarter. For the quarter ended September 30, 2008,
contract manufacturing sales declined $3.1 million or 14.1% from the
comparable quarter last year due to lower sales volumes to one of our largest
customers and the impact of unfavorable foreign currency fluctuations. Net
sales from our branded products declined $282,000 or 26.5% in the first
quarter of fiscal 2009 compared to the first quarter of fiscal 2008 due to the
continued softening of our Pathway to Healing(R) product line.
The net loss from continuing operations in the first quarter of fiscal
2009 was $349,000 or $0.05 per share compared to net income of $751,000 or
$0.11 per diluted share in the first quarter of fiscal 2008. The net loss
from continuing operations was primarily attributable to lower net sales and
higher per unit manufacturing costs due to the lower sales volumes. We also
incurred a net loss from discontinued operations of $1.048 million or $0.15
per share in the first quarter of fiscal 2009 compared to a loss of $328,000
or $0.05 per share in the first quarter of fiscal 2008. The increased net
loss from discontinued operations was primarily attributable to employee
termination costs, facility closure costs and loss on the sale of the As We
Change(R) catalog. Overall, the first quarter loss was $1.397 million or
$0.20 per share compared to income of $423,000 or $0.06 per diluted share in
the comparable quarter last year.
As of September 30, 2008, NAI had cash and certificates of deposit of $3.8
million and working capital of $16.1 million compared to $3.5 million and
$18.1 million, respectively, in the comparable prior year quarter. As of
September 30, 2008, we had $6.6 million available under our working capital
line of credit.
President Randell Weaver stated, "Like many other companies, the recent
economic conditions have impacted our operations. During the remainder of
fiscal 2009 we intend to aggressively manage our business to reduce costs as
appropriate and leverage our state of the art and certified manufacturing
facilities in an effort to expand our contract manufacturing customer base.
For the second quarter of fiscal 2009, we expect net sales to be in line with
first quarter net sales, to incur a smaller overall loss and to maintain a
strong balance sheet. If current economic conditions continue, we expect
continued pressure on our customers, vendors and ourselves, as well as our
competitors. We believe we are well positioned to respond appropriately to
current economic conditions and capitalize on changing economic conditions
because of our cash reserves, excellent manufacturing facilities, good
customer relationships and industry standing."
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
expectations and beliefs with respect to our future financial and operating
results, including the amount of our future revenue and profits and our future
financial condition, and our ability to reduce operating costs, expand our
contract manufacturing business, 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 and Quarterly Report on Form 10-Q.
CONTACT - Kenneth Wolf, 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 BALANCE SHEETS
(In thousands)
(Unaudited)
September 30, June 30,
2008 2008
-------------- --------------
ASSETS
Cash and cash equivalents $3,066 $3,518
Certificate of deposit 699 -
Accounts receivable, net 3,881 6,401
Inventories, net 15,842 14,135
Income tax receivable 2,189 1,354
Current assets of discontinued operations 2,908 6,379
Other current assets 1,941 1,969
-------------- --------------
Total current assets 30,526 33,756
Property and equipment, net 13,566 12,823
Other noncurrent assets, net 431 431
-------------- --------------
Total Assets $44,523 $47,010
============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued liabilities $9,377 $10,034
Line of credit 595 -
Current portion of long-term debt 2,363 2,730
Current liabilities of discontinued operations 2,121 2,882
Deferred rent 1,139 1,164
Long-term pension liability 211 198
-------------- --------------
Total Liabilities 15,806 17,008
Stockholders' Equity 28,717 30,002
-------------- --------------
Total Liabilities and Stockholders'
Equity $44,523 $47,010
============== ==============
NATURAL ALTERNATIVES INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except per share data)
(Unaudited)
Three Months Ended
September 30,
------------------------------
2008 2007
--------- ---------
NET SALES $19,526 100.0% $22,885 100.0%
Cost of goods sold 17,126 87.7% 18,945 82.8%
--------- -------- --------- --------
Gross profit 2,400 12.3% 3,940 17.2%
Selling, general & administrative
expenses 2,618 13.4% 2,892 12.6%
--------- ---------
OPERATING (LOSS) INCOME FROM
CONTINUING OPERATIONS (218) -1.1% 1,048 4.6%
Other expense, net 313 1.6% 11 0.0%
--------- -------- --------- --------
(LOSS) INCOME FROM CONTINUING
OPERATIONS BEFORE TAXES (531) -2.7% 1,037 4.5%
(Benefit) provision for income
taxes (182) 286
--------- ---------
(LOSS) INCOME FROM CONTINUING
OPERATIONS (349) -1.8% 751 3.3%
LOSS FROM DISCONTINUED
OPERATIONS, NET OF TAX (1,048) -5.4% (328) -1.4%
--------- ---------
NET (LOSS) INCOME $(1,397) $423
========= =========
NET INCOME (LOSS) PER COMMON SHARE:
Basic:
Continuing Operations ($0.05) $0.11
Discontinued Operations ($0.15) ($0.05)
--------- ---------
Net (Loss) Income ($0.20) $0.06
========= =========
Diluted:
Continuing Operations ($0.05) $0.11
Discontinued Operations ($0.15) ($0.05)
--------- ---------
Net (Loss) Income ($0.20) $0.06
========= =========
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING:
Basic 7,033 6,914
========= =========
Diluted 7,033 7,022
========= =========
