Business
Natural Alternatives International, Inc. Announces 2024 Q1 Results
CARLSBAD, Calif., Nov. 9, 2023 /PRNewswire/ -- Natural Alternatives International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator, manufacturer, and
About this update from Natural Alternatives International, Inc.
[{"type":"text","content":"CARLSBAD, Calif., Nov. 9, 2023 /PRNewswire/ -- Natural Alternatives International, Inc. (\"NAI\") (Nasdaq: NAII), a leading formulator, manufacturer, and marketer of customized nutritional supplements, today announced a net loss of $0.7 million, or $0.12 per diluted share, on net sales of $34.0 million for the first quarter of fiscal year 2024 compared to net income of $1.1 million, or $0.18 per diluted share, in the first quarter of the prior fiscal year. \n\nNet sales during the three months ended September 30, 2023, decreased $9.2 million, or 21.2%, to $34.0 million as compared to $43.1 million recorded in the comparable prior year period. During the same period, private-label contract manufacturing sales decreased $9.6 million, a 22.9% decrease from the comparable quarter last year. Private-label contract manufacturing sales decreased primarily due to reduced orders from several of our larger customers associated with their efforts to reduce excess on-hand inventories.\nCarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 31.8% to $1.8 million during the first quarter of fiscal year 2024, as compared to $1.4 million for the first quarter of fiscal year 2023. The increase in patent and trademark licensing revenue during the first quarter of fiscal 2023 was primarily due to an increase in orders from existing customers and increased royalty income, partially offset by increased volume rebates.\nWe experienced a loss from operations during the three months ended September 30, 2023. This was primarily due to a slowdown in sales across our private label contract manufacturing segment. We previously 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. We now expect this facility will re-open and our prior level of operations will resume in our fourth fiscal quarter of 2024. Subject to this uncertainty, and our overall sales forecast, we currently anticipate we will experience a net loss in the first half of fiscal 2024, net income in the second half and an overall net loss in fiscal 2024.\nAs of September 30, 2023, we had cash of $16.7 million and working capital of $42.3 million compared to $13.6 million and $41.1 million respectively, as of...