Business
Natural Alternatives International, Inc. Announces Fiscal Year 2019 and Q4 Results
CARLSBAD, Calif., Sept. 24, 2019 /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., Sept. 24, 2019 /PRNewswire/ -- Natural Alternatives International, Inc. (\"NAI\") (Nasdaq: NAII), a leading formulator, manufacturer and marketer of customized nutritional supplements, today reported financial operating results for the fourth quarter and fiscal year ended June 30, 2019. \nFor the fiscal year 2019, net income was $6.5 million, or $0.92 per diluted share, on net sales of $138.3 million, compared to net income of $5.1 million, or $0.73 per diluted share, on net sales of $132.4 million for fiscal year 2018. \nThe previous period's results were unfavorably impacted by one-time discrete tax expense amounts recorded in connection with the 2017 U.S. Tax Cuts and Jobs Act. These one-time charges totaled $3.0 million, or approximately $0.44 per diluted share. Excluding these discrete tax items, our adjusted net income during the fiscal 2018 was $8.1 million, or $1.17 per diluted share.\nNet sales during fiscal year 2019 increased $5.9 million, or 4%, from $132.4 million recorded in the prior year. For fiscal year 2019, private-label contract manufacturing sales increased $10.6 million, or 10%, from the comparable period last year. The increase was due primarily to the sale of new products to new and existing customers, and higher volumes of current products to existing customers located primarily in the U.S. and Asian markets. Sales to our largest private-label contract manufacturing customer decreased 8.3%, however, sales to all other private-label contract manufacturing customers increased more than 40%. The sales decline from our largest private-label contract manufacturing customer primarily related to reduced demand in their international operations. Their sales decline accelerated during the fourth quarter of fiscal year 2019 and resulted in lower product re-orders. \nCarnoSyn® beta-alanine royalty, licensing and raw material sales revenue decreased 22% to $16.7 million during fiscal year 2019 as compared to $21.4 million for fiscal year 2018. We believe this sales decline was impacted by certain customers discontinuing the use of our CarnoSyn® beta-alanine in favor of generic beta-alanine. We expect the recent ruling from the U.S. Court of Appeals for the Federal Circuit in favor of NAI's CarnoSyn® beta-alanine patents, along with our CarnoSyn® beta-alanine New Dietary Ingredient (NDI) status from...