CARLSBAD, Calif., May 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 $28.8 million for the third quarter of fiscal year 2025 compared to a net loss of $1.6 million, or $0.27 per diluted share, in the third quarter of the prior fiscal year.
Net sales during the three months ended March 31, 2025, increased $3.6 million, or 14%, to $28.8 million as compared to $25.1 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales increased 20% to $27.1 million, primarily due to increased orders from several of our larger customers and shipments to new customers.
CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 36% to $1.7 million during the third quarter of fiscal year 2025, as compared to $2.7 million for the third quarter of fiscal year 2024, primarily due to a decrease in orders from existing customers.
Our net loss for the nine months ended March 31, 2025, was $6.4 million, or $1.07 per diluted share, compared to a net loss of $5.3 million, or $0.91 per diluted share, for the nine months ended March 31, 2024.
Net sales during the nine months ended March 31, 2025, increased $11.7 million, or 14%, to $96.0 million as compared to $84.3 million recorded in the comparable prior year period. During the nine months ended March 31, 2025, private-label contract manufacturing sales increased 16% to $90.0 million, as compared to $77.7 million in the comparable prior period. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 9% to $6.0 million during the first nine months of fiscal 2025, as compared to $6.6 million for the first nine months of fiscal 2024.
While we grew our net sales during the three and nine months ended March 31, 2025 as compared to the prior year periods, we continued to experience a loss from operations due primarily to the underutilization of our factory capacities, lower beta-alanine royalty and licensing revenue, and increased operating expenses primarily related to legal costs, selling, general and administrative, salaries and wages. Manufacturing costs were also negatively impacted by increased labor, foreign currency exchange rates, operating supplies, rent, and freight costs. Although our overall sales forecast for the fourth quarter of fiscal 2025 includes an increase in sales as compared to fiscal 2024, we anticipate we will experience an overall net loss for fiscal 2025.
As of March 31, 2025, we had cash of $10.6 million and working capital of $35.2 million, compared to $12.0 million and $38.1 million respectively, as of June 30, 2024. As of March 31, 2025, we had $8.5 million of borrowing capacity on our credit facility of which we had outstanding borrowings of $2.0 million.
Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, "We are encouraged by our continued growth in top line revenue as it reflects the accomplishments our sales teams have garnered in cultivating new customer relationships along with organic sales growth from our current customer base. We believe these sales efforts will lead back to profitability in the year ahead. Supply chain, customer order flow, and currency valuations continue to provide significant headwinds that we are monitoring closely. We are also encouraged by the interest level of our new TriBsyn product offering, and we are optimistic new products containing this innovative ingredient will be launching commercially in retail channels in the near future."
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 | Nine Months Ended | ||||||||||||||||||||||||||
| March 31, | March 31, | ||||||||||||||||||||||||||
| 2025 | 2024 | 2025 | 2024 | ||||||||||||||||||||||||
| NET SALES | $ | 28,766 | 100.0 | % | $ | 25,136 | 100.0 | % | $ | 95,994 | 100.0 | % | $ | 84,307 | 100.0 | % | |||||||||||
| Cost of goods sold | 26,940 | 93.7 | % | 23,214 | 92.4 | % | 90,240 | 94.0 | % | 78,861 | 93.5 | % | |||||||||||||||
| Gross profit | 1,826 | 6.3 | % | 1,922 | 7.6 | % | 5,754 | 6.0 | % | 5,446 | 6.5 | % | |||||||||||||||
| Selling, general & administrative expenses | 3,926 | 13.6 | % | 3,874 | 15.4 | % | 12,470 | 13.0 | % | 11,455 | 13.6 | % | |||||||||||||||
| LOSS FROM OPERATIONS | (2,100 | ) | -7.3 | % | (1,952 | ) | -7.8 | % | (6,716 | ) | -7.0 | % | (6,009 | ) | -7.1 | % | |||||||||||
| Other expense, net | (542 | ) | -1.9 | % | (16 | ) | -0.1 | % | (1,205 | ) | -1.3 | % | (674 | ) | -0.8 | % | |||||||||||
| LOSS BEFORE TAXES | (2,642 | ) | -9.2 | % | (1,968 | ) | -7.8 | % | (7,921 | ) | -8.3 | % | (6,683 | ) | -7.9 | % | |||||||||||
| Income tax benefit | (456 | ) | (390 | ) | (1,562 | ) | (1,340 | ) | |||||||||||||||||||
| NET LOSS | $ | (2,186 | ) | $ | (1,578 | ) | $ | (6,359 | ) | $ | (5,343 | ) | |||||||||||||||
| NET LOSS PER COMMON SHARE: | |||||||||||||||||||||||||||
| Basic: | ($0.37 | ) | ($0.27 | ) | ($1.07 | ) | ($0.91 | ) | |||||||||||||||||||
| Diluted: | ($0.37 | ) | ($0.27 | ) | ($1.07 | ) | ($0.91 | ) | |||||||||||||||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||||||||||||||||||
| Basic | 5,943 | 5,868 | 5,928 | 5,856 | |||||||||||||||||||||||
| Diluted | 5,943 | 5,868 | 5,928 | 5,856 | |||||||||||||||||||||||
| NATURAL ALTERNATIVES INTERNATIONAL, INC. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| (In thousands) | ||||||
| (unaudited) | ||||||
| March 31, | June 30, | |||||
| 2025 | 2024 | |||||
| ASSETS | ||||||
| Cash and cash equivalents | $10,611 | $11,981 | ||||
| Accounts receivable, net | 11,650 | 16,891 | ||||
| Inventories, net | 26,991 | 24,249 | ||||
| Other current assets | 9,267 | 8,489 | ||||
| Total current assets | 58,519 | 61,610 | ||||
| Property and equipment, net | 50,564 | 52,211 | ||||
| Operating lease right-of-use assets | 41,682 | 43,537 | ||||
| Other noncurrent assets, net | 4,179 | 4,984 | ||||
| Total Assets | $154,944 | $162,342 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Accounts payable and accrued liabilities | $19,893 | $19,456 | ||||
| Line of Credit | 2,000 | 3,400 | ||||
| Mortgage note payable | 9,007 | 9,229 | ||||
| Operating lease liability | 47,425 | 47,662 | ||||
| Total Liabilities | 78,325 | 79,747 | ||||
| Stockholders' Equity | 76,619 | 82,595 | ||||
| Total Liabilities and Stockholders' Equity | $154,944 | $162,342 | ||||
