Natural Alternatives International, Inc. Announces Fiscal 2024 Q3 and YTD Results
Natural Alternatives International (NAII) announced its fiscal 2024 Q3 results, revealing a net loss of $1.6 million, or ($0.27) per diluted share, on net sales of $25.1 million. This compares to a $2.4 million net loss in Q3 of the prior year. Q3 net sales fell by 23%, driven by a 26% decrease in private-label contract manufacturing sales. However, CarnoSyn® beta-alanine revenue rose 13% to $2.7 million. For the nine months ending March 31, 2024, NAII reported a net loss of $5.3 million on net sales of $84.3 million, a 29% decrease year-over-year. Cash reserves stood at $12.4 million, with zero outstanding on their credit facility. The company expects to report a net loss for Q4 and fiscal 2024 due to ongoing market adjustments but forecasts future sales growth and a return to profitability with the reopening of their Carlsbad facility in May 2024.
- CarnoSyn® beta-alanine revenue increased 13% in Q3 and 28% year-to-date.
- Cash reserves at $12.4 million as of March 31, 2024.
- Zero outstanding on credit facility as of March 31, 2024.
- The Carlsbad powder facility is set to reopen in May 2024, potentially boosting future sales.
- Net loss of $1.6 million in Q3 2024, or ($0.27) per diluted share.
- Net sales decreased by 23% to $25.1 million in Q3 2024.
- Private-label contract manufacturing sales dropped by 26% in Q3.
- Year-to-date net loss of $5.3 million.
- Net sales for nine months ending March 31, 2024, fell by 29%.
- Anticipated net loss for Q4 and fiscal 2024.
Insights
NAI's fiscal Q3 2024 results reveal a significant net loss reduction but still portray a challenging financial landscape due to a notable decrease in net sales by
While the increase in CarnoSyn® beta-alanine royalty revenues by
However, management's guidance indicating continued net losses for Q4 2024 casts uncertainty over short-term recovery. Given the company's forecast and overall sales weakening, investors should approach with caution, monitoring for signs of stabilization and any realignment toward profitability.
The nutritional supplements market has been growing, but NAI’s results highlight pressures specific to the private-label sector. The 31% decrease in private-label contract manufacturing sales over nine months is significant, suggesting either market saturation or competitive pressures. The company's strategy to re-open its powder processing facility and its effort to address excess inventory issue reflect a short-term tactical move rather than a robust long-term strategy.
The increase in CarnoSyn® beta-alanine sales revenue is noteworthy, showing a demand for specialized products. However, reliance on a few large customers poses a risk. Diversification of the customer base and expansion of their proprietary ingredient market could reduce such vulnerabilities. Investors should watch for how effectively NAI leverages its current pipeline of new business opportunities and whether these efforts translate into sustainable sales growth.
CARLSBAD, Calif., May 14, 2024 (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
Net sales during the three months ended March 31, 2024, decreased
CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased
Our net loss for the nine months ended March 31, 2024, was
Net sales during the nine months ended March 31, 2024, decreased
We experienced a loss from operations during the three and nine months ended March 31, 2024. This was primarily due to a slowdown in sales across our private-label contract manufacturing segment. On August 16, 2023, we announced the temporary closure of our high-speed powder processing facility in Carlsbad, California due to excess inventory on hand at one of our largest customers and their efforts to rebalance supply and demand. On April 2, 2024, we announced we will be reopening this facility in May 2024.
Based on our current overall sales forecast, we anticipate we will experience a net loss in the fourth quarter of fiscal 2024 and an overall net loss for fiscal 2024.
As of March 31, 2024, we had cash of
Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “Our efforts to re-open our Carlsbad powder facility are progressing as planned and we expect to resume commercial product production later this month. We believe the industry has worked through a substantial portion of its excess inventory positions, and with a healthy pipeline of new business opportunities, we are optimistic of our future sales growth and return to 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 re-open our Carlsbad powder facility, 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, | ||||||||||||||||||||||||||
| 2024 | 2023 | 2024 | 2023 | ||||||||||||||||||||||||
| NET SALES | $ | 25,136 | 100.0 | % | $ | 32,699 | 100.0 | % | $ | 84,307 | 100.0 | % | $ | 118,121 | 100.0 | % | |||||||||||
| Cost of goods sold | 23,214 | 92.4 | % | 31,323 | 95.8 | % | 78,861 | 93.5 | % | 105,160 | 89.0 | % | |||||||||||||||
| Gross profit | 1,922 | 7.6 | % | 1,376 | 4.2 | % | 5,446 | 6.5 | % | 12,961 | 11.0 | % | |||||||||||||||
| Selling, general & administrative expenses | 3,874 | 15.4 | % | 3,864 | 11.8 | % | 11,455 | 13.6 | % | 11,422 | 9.7 | % | |||||||||||||||
| (LOSS) INCOME FROM OPERATIONS | (1,952 | ) | -7.8 | % | (2,488 | ) | -7.6 | % | (6,009 | ) | -7.1 | % | 1,539 | 1.3 | % | ||||||||||||
| Other expense, net | (16 | ) | -0.1 | % | (300 | ) | -0.9 | % | (674 | ) | -0.8 | % | (723 | ) | -0.6 | % | |||||||||||
| (LOSS) INCOME BEFORE TAXES | (1,968 | ) | -7.8 | % | (2,788 | ) | -8.5 | % | (6,683 | ) | -7.9 | % | 816 | 0.7 | % | ||||||||||||
| Income tax (benefit) expense | (390 | ) | (407 | ) | (1,340 | ) | 331 | ||||||||||||||||||||
| NET (LOSS) INCOME | $ | (1,578 | ) | $ | (2,381 | ) | $ | (5,343 | ) | $ | 485 | ||||||||||||||||
| NET (LOSS) INCOME PER COMMON SHARE: | |||||||||||||||||||||||||||
| Basic: | ($ | 0.27 | ) | ($ | 0.41 | ) | ($ | 0.91 | ) | $ | 0.08 | ||||||||||||||||
| Diluted: | ($ | 0.27 | ) | ($ | 0.41 | ) | ($ | 0.91 | ) | $ | 0.08 | ||||||||||||||||
| WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | |||||||||||||||||||||||||||
| Basic | 5,868 | 5,816 | 5,856 | 5,867 | |||||||||||||||||||||||
| Diluted | 5,868 | 5,816 | 5,856 | 5,885 | |||||||||||||||||||||||
| NATURAL ALTERNATIVES INTERNATIONAL, INC. | |||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||
| (In thousands) | |||||
| (unaudited) | |||||
| March 31, | June 30, | ||||
| 2024 | 2023 | ||||
| ASSETS | |||||
| Cash and cash equivalents | $ | 12,407 | $ | 13,604 | |
| Accounts receivable, net | 11,221 | 7,022 | |||
| Inventories, net | 21,071 | 29,694 | |||
| Other current assets | 9,662 | 6,690 | |||
| Total current assets | 54,361 | 57,010 | |||
| Property and equipment, net | 52,384 | 53,841 | |||
| Operating lease right-of-use assets | 44,032 | 20,369 | |||
| Other noncurrent assets, net | 2,434 | 2,932 | |||
| Total Assets | $ | 153,211 | $ | 134,152 | |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||
| Accounts payable and accrued liabilities | 13,254 | 14,450 | |||
| Line of Credit | - | - | |||
| Mortgage note payable | 9,301 | 9,517 | |||
| Operating lease liability | 46,557 | 21,413 | |||
| Total Liabilities | 69,112 | 45,380 | |||
| Stockholders’ Equity | 84,099 | 88,772 | |||
| Total Liabilities and Stockholders’ Equity | $ | 153,211 | $ | 134,152 | |
FAQ
What were the Q3 2024 financial results for NAII?
How did NAII's net sales perform in Q3 2024?
What caused the decrease in NAII's private-label contract manufacturing sales in Q3 2024?
How did CarnoSyn® beta-alanine revenue perform in Q3 2024?
What is NAII's financial outlook for Q4 2024?
What were NAII's cash reserves as of March 31, 2024?
When is NAII's Carlsbad powder facility expected to reopen?
