- 2022 Q4: $52.5 million Net
Sales (+18%), $3.1 million Net
Income, and $0.52 Diluted
EPS
CARLSBAD, Calif., Sept. 21,
2022 /PRNewswire/ -- Natural Alternatives
International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator,
manufacturer, and marketer of customized nutritional supplements,
today announced net income of $3.1
million, or $0.52 per diluted
share, on net sales of $52.5 million
for the fourth quarter of fiscal year 2022 compared to net
income of $3.0 million, or
$0.47 per diluted share, in the
fourth quarter of the prior fiscal year.
Net sales during the three months ended June 30, 2022 increased $8.1 million, or 18.3%, to $52.5 million as compared to $44.4 million recorded in the comparable prior
year period. During the same period, private-label contract
manufacturing sales increased 25.6% to $49.9
million. Private-label contract manufacturing sales
increased primarily due to sales to a new customer that sells meal
replacement type products through retail e-commerce. The
increase from this customer was partially offset by a reduction in
sales to our largest customer. Sales backlog for the quarter ended
June 30, 2022, totaled approximately
$8.0 million primarily related to
supply chain issues, labor shortages, and logistical
constraints.
CarnoSyn® beta-alanine royalty, licensing and raw material sales
revenue decreased 43.6% to $2.6
million during the fourth quarter of fiscal year 2022, as
compared to $4.7 million for the
fourth quarter of fiscal year 2021. The decrease in patent and
trademark licensing and raw material revenues during the fourth
quarter of fiscal 2022 was primarily due to decreased shipments to
existing customers as a result of market and seasonal factors. In
particular, Q4 fiscal 2021 CarnoSyn® sales benefited from an
increase in athletic activities due to easing COVID restrictions
resulting in our customers ramping up their sales activities and
inventory levels.
Net income for fiscal year 2022 was $10.7
million, or $1.74 per diluted
share, compared to net income of $10.8
million, or $1.69 per diluted
share, for fiscal year 2021. Net income for fiscal year 2021
included a $0.9 million discrete tax
benefit while the fiscal year 2022 did not have a corresponding
discrete item.
Net sales during the year ended June 30,
2022, decreased $7.6 million,
or 4.2%, to $171.0 million as
compared to $178.5 million recorded
in the comparable prior year. During the year ended
June 30, 2022, private-label contract
manufacturing sales decreased $9.5
million, or 5.8%, from the comparable period last year.
CarnoSyn® beta-alanine royalty, licensing and raw material sales
revenue increased 13.8% to $16.2
million during the year ended June
30, 2022, as compared to $14.2
million in the prior year ended June
30, 2021.
Based on our current sales order volumes, sales backlog and
forecasts we have received from our customers, we anticipate our
fiscal 2023 consolidated net sales will increase between 10.0% and
15.0% as compared to fiscal 2022. We also anticipate we will
generate operating income between 5.0% and 7.0% of net sales for
our fiscal year ending June 30, 2023.
While sales are expected to increase during fiscal 2023 when
compared to fiscal 2022, we anticipate operating income will be
negatively impacted by changes in sales mix and increased
operational costs primarily due to increased labor and supply chain
costs and other inflationary factors. We anticipate current
inflation rates will have a negative impact on our fiscal 2023
operations and we are monitoring the drivers and working with
suppliers and customers to mitigate the impact on our results.
There can be no assurance our expectations of an increase in
net sales or operating income levels will actually occur or if they
do the results will be in the amounts anticipated.
As of June 30, 2022, we had cash
of $21.8 million and working capital
of $53.5 million, compared to
$32.1 million and $58.3 million respectively, as of June 30, 2021. As of June
30, 2022, we had $20.0 million
available under our line of credit agreement.
Mark A. Le Doux, Chairman and
Chief Executive Officer of NAI stated, "We are proud of finishing
the fourth quarter of fiscal 2022 with a new record for quarterly
sales and we are very grateful to the perseverance and dedication
from our team to achieve this success, despite many on-going
challenges. We have made significant strides in resolving our
staffing shortfall in our domestic manufacturing operations;
however, we continue to face challenges with the cost of labor and
other rising operational costs related to inflation. We are
diligently working with our supply chain and customers to look for
ways to minimize the impact of these rising costs, but these
obstacles and circumstances are not isolated to our company or
industry."
"While we anticipate sales growth during our next fiscal year,
there are headwinds within our industry, like many others,
indicating that consumer demand is slowing as a result of
inflation. These challenges are causing consumers to make
difficult decisions each month regarding where to allocate their
disposable income."
"Construction on our new manufacturing facility in Carlsbad, California is progressing, and we
now anticipate this state-of-the art powder plant will be
operational by the middle of our fiscal year 2023."
"Finally, we are committed to delivering value for our
shareholders as we repurchased 406,817 shares in fiscal 2022. We
will continue to opportunistically buy back shares given our
current valuation. While we see macro challenges across the economy
ahead, our team is working hard across all departments to navigate
these obstacles, deliver superior service for our customers and
drive sales 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.
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 INCOME
|
(In thousands, except
per share data)
|
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Year Ended
|
|
|
|
June
30,
|
|
|
|
June
30,
|
|
|
|
2022
|
|
|
|
2021
|
|
|
|
2022
|
|
|
|
2021
|
|
|
NET
SALES
|
$ 52,526
|
|
100.0 %
|
|
$ 44,391
|
|
100.0 %
|
|
$ 170,966
|
|
100.0 %
|
|
$
178,520
|
|
100.0 %
|
Cost of goods
sold
|
44,237
|
|
84.2 %
|
|
36,464
|
|
82.1 %
|
|
140,457
|
|
82.2 %
|
|
148,078
|
|
82.9 %
|
Gross profit
|
8,289
|
|
15.8 %
|
|
7,927
|
|
17.9 %
|
|
30,509
|
|
17.8 %
|
|
30,442
|
|
17.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general &
administrative expenses
|
4,513
|
|
8.6 %
|
|
4,432
|
|
10.0 %
|
|
16,830
|
|
9.8 %
|
|
16,770
|
|
9.4 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME FROM
OPERATIONS
|
3,776
|
|
7.2 %
|
|
3,495
|
|
7.9 %
|
|
13,679
|
|
8.0 %
|
|
13,672
|
|
7.7 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income (loss),
net
|
103
|
|
0.2 %
|
|
(94)
|
|
-0.2 %
|
|
(20)
|
|
0.0 %
|
|
(1,547)
|
|
-0.9 %
|
INCOME BEFORE
TAXES
|
3,879
|
|
7.4 %
|
|
3,401
|
|
7.7 %
|
|
13,659
|
|
8.0 %
|
|
12,125
|
|
6.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
774
|
|
|
|
439
|
|
|
|
2,947
|
|
|
|
1,357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$ 3,105
|
|
|
|
$ 2,962
|
|
|
|
$ 10,712
|
|
|
|
$ 10,768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER
COMMON SHARE:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic:
|
$0.52
|
|
|
|
$0.47
|
|
|
|
$1.75
|
|
|
|
$1.71
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted:
|
$0.52
|
|
|
|
$0.47
|
|
|
|
$1.74
|
|
|
|
$1.69
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WEIGHTED AVERAGE COMMON
SHARES
OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
5,966
|
|
|
|
6,274
|
|
|
|
6,117
|
|
|
|
6,291
|
|
|
Diluted
|
5,971
|
|
|
|
6,315
|
|
|
|
6,155
|
|
|
|
6,379
|
|
|
NATURAL ALTERNATIVES
INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
2022
|
|
2021
|
|
|
|
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$21,833
|
|
$32,133
|
Accounts receivable,
net
|
17,422
|
|
17,946
|
Inventories,
net
|
32,475
|
|
27,006
|
Other current
assets
|
5,016
|
|
3,263
|
Total current assets
|
76,746
|
|
80,348
|
Property and equipment,
net
|
44,573
|
|
22,271
|
Operating lease
right-of-use assets
|
21,701
|
|
15,877
|
Other noncurrent
assets, net
|
2,983
|
|
1,785
|
Total Assets
|
$146,003
|
|
$120,281
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
Accounts payable and
accrued liabilities
|
25,641
|
|
23,717
|
Mortgage note
payable
|
9,795
|
|
-
|
Long-term liability -
operating leases
|
22,047
|
|
16,481
|
Total Liabilities
|
57,483
|
|
40,198
|
Stockholders'
Equity
|
88,520
|
|
80,083
|
Total Liabilities and Stockholders' Equity
|
$146,003
|
|
$120,281
|
View original
content:https://www.prnewswire.com/news-releases/natural-alternatives-international-inc-announces-2022-q4-and-ytd-results-301630255.html
SOURCE Natural Alternatives International, Inc.