SAN MARCOS, Calif., Feb. 14 /PRNewswire-FirstCall/ -- Natural Alternatives International (NAI), Inc. (Nasdaq: NAII), a leading formulator and manufacturer of customized nutritional supplements, announced today its financial results for the second quarter and first six months of fiscal 2002. In addition, NAI announced the completion of further management restructuring and cost reductions and the receipt of additional settlement proceeds from pending litigation.
NAI reported a 28% increase in second quarter revenue of $12.7 million compared to first quarter revenue of $9.9 million this fiscal year. Net income for the second quarter was $64,000, a $722,000 improvement over the net loss of ($658,000) in the first quarter. Diluted net income per share was $0.01 for the second quarter compared to a diluted net loss per share of ($0.11) for the first quarter of this fiscal year.
Chairman and CEO Mark LeDoux said, "I am pleased with the revenue increase this quarter and applaud the efforts of our entire workforce in controlling cash and improving productivity."
CFO Randell Weaver said, "The improved results for the second quarter are another step forward in our effort to demonstrate sustained profitability. We experienced a number of challenges in the quarter including margin pressure in our core business and increased costs in our DTC product line related to the inadequate performance of an outsourced service provider who was replaced. In spite of these challenges, we experienced sustainable growth and posted a small profit."
Net revenues were $12.7 million in the second quarter of fiscal 2002, compared to $11.2 million in the second quarter of fiscal 2001, an increase of $1.4 million or 12.6%. Net income was $64,000 (or $0.01 per diluted share) in the second quarter of fiscal 2002 compared to the net income of $443,000 (or $0.08 per diluted share) in the second quarter of fiscal 2001.
Net revenues were $22.5 million for the six months ended December 31, 2001, compared to $21.5 million for the six months ended December 31, 2000, an increase of $1.1 million, or 5%. NAI's net loss was ($594,000) (or $0.10 per diluted share) for the six months ended December 31, 2001 compared to the net income of $648,000 (or $0.11 per diluted share) for the six months ended December 31, 2000.
NAI also reported that it received additional settlement proceeds of approximately $1.0 million from pending litigation in January 2002. This amount is not reflected in the financial statements as of December 31, 2001, and will be included in the financial statements for the quarter ended March 31, 2002.
In January 2002, the Company completed further management restructuring and cost reductions expected to generate annual savings in excess of $1.0 million.
Mr. Weaver commented, "I believe we have made progress thus far and are working toward continued improvement in our financial results, but we are cautious. During the third quarter we will incur additional separation costs related to the management restructuring. We may also experience increased costs in our DTC product line as we complete our transition to a new outsourced service provider."
Weaver added, "With the approximate $1.0 million received in January 2002, we will be able to reduce outstanding accounts payable and long-term debt."
Natural Alternatives International, Inc., headquartered in San Marcos, California, is a leading formulator and manufacturer of nutritional supplements providing strategic partnering services to its customers. The Company's comprehensive partnership approach offers a wide range of innovative nutritional products and services to the client including: scientific research, clinical studies demonstrating product efficacy, 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 Natural Alternatives International, please see our Web site 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 the Company's intentions, expectations and beliefs concerning future events, including, among other things, expectations and beliefs with respect to future financial and operating results; the ability to sustain profitability, contain costs, maintain adequate financing, improve liquidity, enhance direct-to-consumer programs, and implement its strategic plan. The Company wishes to caution and advise readers that 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. The Company'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 the Company with the Securities and Exchange Commission, including the Company's most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K.
SOURCE Natural Alternatives International, Inc.