Full Press Release Details
CARLSBAD, Calif., Feb. 14, 2025 (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 $2.2 million, or $0.37 per diluted share, on net sales of $34.1 million for the second quarter of fiscal year 2025 compared to a net loss of $3.1 million, or $0.52 per diluted share, in the second quarter of the prior fiscal year.
Net sales during the three months ended December 31, 2024, increased $8.9 million, or 35%, to $34.1 million as compared to $25.2 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales increased 40% to $32.3 million. Private-label contract manufacturing sales increased primarily due to increased orders from two of our larger customers and shipments to new customers, partially offset by decreased shipments to other existing customers.
CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 18% to $1.8 million during the second quarter of fiscal year 2025, as compared to $2.2 million for the second quarter of fiscal year 2024. The decrease in CarnoSyn® beta-alanine royalty, licensing, and raw material sales revenue during the second quarter of fiscal 2025 was primarily due to a decrease in orders from existing customers.
Our net loss for the six months ended December 31, 2024, was $4.2 million, or $0.70 per diluted share, compared to a net loss of $3.8 million, or $0.64 per diluted share, for the six months ended December 31, 2023.
Net sales during the six months ended December 31, 2024, increased $8.1 million, or 14%, to $67.2 million as compared to $59.2 million recorded in the comparable prior year period. During the six months ended December 31, 2024, private-label contract manufacturing sales increased 14% to $62.9 million, as compared to $55.2 million in the comparable prior period. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 9% to $4.3 million during the first six months of fiscal 2025, as compared to $3.9 million for the first six months of fiscal 2024.
We experienced a loss from operations during the three and six months ended December 31, 2024. This operating loss was primarily due to a change in sales mix from our private-label contract manufacturing segment, increased manufacturing and selling and general administrative costs, and increased legal costs associated with expanding our beta-alanine patent estate. Although our overall sales forecast for fiscal 2025 includes an increase in sales as compared to fiscal 2024, we anticipate we will experience a net loss in the second half of fiscal 2025, and an overall net loss for the fiscal 2025 year.
As of December 31, 2024, we had cash of $8.7 million and working capital of $36.9 million, compared to $12.0 million and $38.1 million respectively, as of June 30, 2024. As of December 31, 2024, we had $10.8 million of borrowing capacity on our credit facility of which we had outstanding borrowings of $5.0 million.
Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “We are pleased to have seen growth in our revenues this last quarter leading to significant reductions in anticipated losses. Consistent customer order flow and currency valuations provided significant headwinds during the past six months. As we begin the second half of our fiscal year, we remain dedicated to restoring profitability in what remains a challenging environment, and steadfast in our commitment to excellent customer service, continued product innovation along with patent expansion with our new TriBSyn™ product offerings.”
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: http://www.nai-online.com
| NATURAL ALTERNATIVES INTERNATIONAL, INC. | ||||||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||||||
| (In thousands, except per share data) | ||||||||||||||||||||||||||||
| (Unaudited) | (Unaudited) | |||||||||||||||||||||||||||
| Three Months Ended | Six Months Ended | |||||||||||||||||||||||||||
| December 31, | December 31, | |||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||||||||||||||
| NET SALES | $ | 34,078 | 100.0 | % | $ | 25,202 | 100.0 | % | $ | 67,228 | 100.0 | % | $ | 59,171 | 100.0 | % | ||||||||||||
| Cost of goods sold | 32,409 | 95.1 | % | 24,815 | 98.5 | % | 63,300 | 94.2 | % | 55,647 | 94.0 | % | ||||||||||||||||
| Gross profit | 1,669 | 4.9 | % | 387 | 1.5 | % | 3,928 | 5.8 | % | 3,524 | 6.0 | % | ||||||||||||||||
| Selling, general & administrative expenses | 4,449 | 13.1 | % | 3,900 | 15.5 | % | 8,544 | 12.7 | % | 7,581 | 12.8 | % | ||||||||||||||||
| LOSS FROM OPERATIONS | (2,780 | ) | -8.2 | % | (3,513 | ) | -13.9 | % | (4,616 | ) | -6.9 | % | (4,057 | ) | -6.9 | % | ||||||||||||
| Other expense, net | (86 | ) | -0.3 | % | (318 | ) | -1.3 | % | (663 | ) | -1.0 | % | (658 | ) | -1.1 | % | ||||||||||||
| LOSS BEFORE TAXES | (2,866 | ) | -8.4 | % | (3,831 | ) | -15.2 | % | (5,279 | ) | -7.9 | % | (4,715 | ) | -8.0 | % | ||||||||||||
| Income tax benefit | (675 | ) | (761 | ) | (1,106 | ) | (950 | ) | ||||||||||||||||||||
| NET LOSS | $ | (2,191 | ) | $ | (3,070 | ) | $ | (4,173 | ) | $ | (3,765 | ) | ||||||||||||||||
| NET LOSS PER COMMON SHARE: | ||||||||||||||||||||||||||||
| Basic: | ($ | 0.37 | ) | ($ | 0.52 | ) | ($ | 0.70 | ) | ($ | 0.64 | ) | ||||||||||||||||
| Diluted: | ($ | 0.37 | ) | ($ | 0.52 | ) | ($ | 0.70 | ) | ($ | 0.64 | ) | ||||||||||||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ||||||||||||||||||||||||||||
| Basic | 5,921 | 5,850 | 5,920 | 5,850 | ||||||||||||||||||||||||
| Diluted | 5,921 | 5,850 | 5,920 | 5,850 |
| NATURAL ALTERNATIVES INTERNATIONAL, INC. | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| (In thousands) | |||||
| (unaudited) | |||||
| December 31, | June 30, | ||||
| 2024 | 2024 | ||||
| ASSETS | |||||
| Cash and cash equivalents | $ | 8,663 | $ | 11,981 | |
| Accounts receivable, net | 16,898 | 16,891 | |||
| Inventories, net | 23,036 | 24,249 | |||
| Other current assets | 9,950 | 8,489 | |||
| Total current assets | 58,547 | 61,610 | |||
| Property and equipment, net | 50,939 | 52,211 | |||
| Operating lease right-of-use assets | 42,303 | 43,537 | |||
| Other noncurrent assets, net | 4,339 | 4,984 | |||
| Total Assets | $ | 156,128 | $ | 162,342 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Accounts payable and accrued liabilities | 15,314 | 19,456 | |||
| Line of Credit | 5,000 | 3,400 | |||
| Mortgage note payable | 9,082 | 9,229 | |||
| Operating lease liability | 47,591 | 47,662 | |||
| Total Liabilities | 76,987 | 79,747 | |||
| Stockholders’ Equity | 79,141 | 82,595 | |||
| Total Liabilities and Stockholders’ Equity | $ | 156,128 | $ | 162,342 |