Natural Alternatives International, Inc.Announces First Quarter 2022 Results

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CARLSBAD, California, November 9, 2021 / PRNewswire / – -Natural Alternatives International, Inc. (“NAI”) (Nasdaq: NAII), a leading formulator, manufacturer and distributor of personalized nutritional supplements, today announced net earnings of $ 3.3 million, Where $ 0.51 per diluted share, on sales of $ 38.3 million for the first quarter of fiscal year 2022 compared to the net income of $ 2.3 million, Where $ 0.35 per diluted share, in the first quarter of the previous fiscal year.

Net sales during the three months ended September 30, 2021 decreases $ 1.4 million, or 3.5%, to $ 38.3 million compared to $ 39.7 million recognized during the comparable period of the previous financial year. During the same period, private label contract manufacturing sales declined to $ 33.6 million, a decrease of 9.3% compared to the comparable quarter of the previous fiscal year. Private label manufacturing sales declined primarily due to a 45% drop in sales to our largest customer, primarily associated with their European markets. This decline in sales was largely offset by increased sales to new and existing customers, including significant sales from a new customer operating in the direct-to-consumer market. Sales book for the quarter ended September 30, 2021 outmoded $ 8.0 million and was mainly related to the supply chain and logistical constraints.

CarnoSyn® beta-alanine royalty, license and raw material sales revenues increased by 77.1% to $ 4.7 million during the first quarter of fiscal 2022, compared to $ 2.7 million for the first quarter of fiscal 2021. The increase in patent and trademark licensing revenues in the first quarter of fiscal 2022 is mainly due to increased shipments to existing customers related to sports activities and the reopening of gymnasiums in accordance with the easing of COVID-19 restrictions through the United States compared to significant restrictions in sporting activities in the first quarter of fiscal 2021 combined with sales to new customers and higher average selling prices.

Based on our current customer order volumes, our order book and the forecasts we have received from our customers; we now expect our consolidated revenue for fiscal 2022 to grow between 7.0% and 10.0% compared to fiscal 2021. We also now expect that we will generate operating profit between 10.0% and 13.0% of sales for our year ending June 30, 2022. Sales and profitability in the first half of fiscal 2022 are expected to decrease compared to the same period of fiscal 2021. Our expectations for the first half of fiscal 2022 are driven by supply chain, labor and logistical constraints, which are expected to result in a backlog of existing orders that may not be fully resolved until the second half of fiscal 2022. We currently expect these supply chain and manufacturing issues to continue. will resolve mainly in the second half of fiscal 2022. As a result, we expect sales and profitability for the second half of fiscal 2022 to exceed the comparable period of fiscal 2021, the overall results year 2022 reflecting an increase in sales and profitability over a full year.

From September 30, 2021, we had cash from $ 20.0 million and working capital of $ 54.6 million compared to $ 32.1 million and $ 58.3 million respectively, from June 30, 2021. From September 30, 2021, we have had $ 20.0 million available under our line of credit agreement.

Marc A. The Sweet, Chairman and CEO of NAI said, “Despite a decline in sales from our largest client, we have been able to make significant progress in growing our business with other clients in a variety of of channels, including the recent acquisition of a new one We believe that the dietary supplement industry is in a period of significant growth and we find ourselves in the enviable position where we are able to capitalize on new opportunities by leveraging built on our reputation for quality and integrity as well as our available equipment capacity supported by the strength of our balance sheet. ”

“We continue to address the supply chain and staffing challenges that have resulted in a larger than normal backlog, but we believe we will be able to overcome these challenges by the end of this year. calendar year. The workforce is expected to pay dividends in the second half of our current fiscal year. “

“We believe our favorable profitability as a percentage of sales is a trend that will be fully realized over a full year, supported by an improved customer mix, capacity utilization, favorable currency conversion on overseas sales and a contribution improvement of our CarnoSyn® business. “

An updated investor presentation will be posted on the Investor Relations page on our website later today (https://www.nai-online.com/our-company/investors/).

NAI, headquartered at Carlsbad, California, is one of the leading formulators, manufacturers and distributors of nutritional supplements and provides strategic partnership 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, client specific nutritional product formulation, product testing and evaluation, management and marketing support, design of packaging and delivery systems, regulatory review and assistance with international product registration. For more information on NAI, please visit 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 regarding future events, including, but not limited to, our ability to develop, maintain or increase sales to new and existing customers, our ability to attract and retain sufficient workforce. , COVID-19 and related impacts on the availability of raw materials, our future profits and financial condition, as well as future economic conditions and the impact of these conditions on our business. We caution readers that these statements involve risks and uncertainties that could cause actual results and results for future periods to differ materially from any forward-looking statement or view expressed in this document. The financial performance of NAI and the forward-looking statements contained herein are further subject to other risks, including those set forth from time to time in documents that we have filed with the Securities and Exchange Commission, including our most recent annual report on Form 10-K.

CONTACT – Michel Fortin, Chief Financial Officer, Natural Alternatives International, Inc., at 760-736-7700 or [email protected].

Website: http://www.nai-online.com

NATURAL ALTERNATIVES INTERNATIONAL, INC.

CONDENSED CONSOLIDATED INCOME STATEMENTS

(In thousands, except per share data)



(Unaudited)





Three months ended





September 30





2021




2020




NET SALES

$ 38,340


100.0%


$ 39,726


100.0%


Cost of goods sold

30,059


78.4%


33 721


84.9%


Gross profit

8 281


21.6%


6,005


15.1%











Selling, general and administrative expenses

4,053


10.6%


3 920


9.9%











REVENUE FROM OPERATIONS

4 228


11.0%


2,085


5.2%











Other expenses, net

(26)


-0.1%


(321)


-0.8%


INCOME BEFORE TAX

4,202


11.0%


1764


4.4%











Tax expense (benefit)

946




(494)













NET REVENUE

$ 3,256




$ 2,258






















NET EARNINGS PER ORDINARY SHARE:









Basic:

$ 0.52




$ 0.35













Diluted:

$ 0.51




$ 0.35













WEIGHTED AVERAGE OF ORDINARY SHARES OUTSTANDING:









Basic

6 288




6,418




Diluted

6,351




6,471













NATURAL ALTERNATIVES INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEET

(In thousands)






(unaudited)




September 30


June 30th


2021


2021





ASSETS




Cash and cash equivalents

$ 20,028


$ 32,133

Accounts receivable, net

20 245


17 946

Net stocks

31,709


27,006

Other current assets

3,254


3 263

Total current assets

75,236


80 348

Property and equipment, net

39,504


22,271

Operating right of use assets

15,212


15 877

Other non-current assets, net

2,211


1785

Total assets

$ 132,163


$ 120,281





LIABILITIES AND EQUITY




Accounts payable and accrued liabilities

21 921


23 717

Credit line

10,000


Long-term liabilities – operating leases

15,737


16,481

Total responsibilities

47,658


40,198

Equity

84,505


80,083

Total liabilities and equity

$ 132,163


$ 120,281





SOURCE Natural Alternatives International, Inc.


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