Natural Alternatives International, Inc. Announces Fiscal 2024 Q3 and YTD Results

Core Insights - Natural Alternatives International, Inc. (NAI) reported a net loss of $1.6 million, or ($0.27) per diluted share, on net sales of $25.1 million for Q3 FY2024, an improvement from a net loss of $2.4 million, or ($0.41) per diluted share, in the same quarter of the previous fiscal year [1][4]. Financial Performance - Net sales for the three months ended March 31, 2024, decreased by $7.6 million, or 23%, to $25.1 million compared to $32.7 million in the same period last year [2]. - Private-label contract manufacturing sales fell by 26% to $22.4 million, primarily due to reduced orders from larger customers aiming to decrease excess inventory [2]. - For the nine months ended March 31, 2024, net sales decreased by $33.8 million, or 29%, to $84.3 million compared to $118.1 million in the prior year [5]. Revenue Streams - CarnoSyn® beta-alanine royalty, licensing, and raw material sales revenue increased by 13% to $2.7 million in Q3 FY2024, driven by higher royalty income and favorable volume rebate activity [3]. - For the first nine months of FY2024, CarnoSyn® revenue rose by 28% to $6.6 million compared to $5.2 million in the same period of FY2023 [5]. Operational Challenges - The company experienced a loss from operations due to a slowdown in sales within the private-label contract manufacturing segment [6]. - A temporary closure of the high-speed powder processing facility in Carlsbad, California, was announced on August 16, 2023, due to excess inventory at a major customer [6]. Future Outlook - The company anticipates a net loss in Q4 FY2024 and an overall net loss for FY2024 based on current sales forecasts [7]. - The reopening of the Carlsbad powder facility is expected to resume commercial production later in May 2024, with optimism for future sales growth and return to profitability [8]. Balance Sheet Highlights - As of March 31, 2024, the company had cash of $12.4 million and working capital of $40.7 million, slightly down from $13.6 million and $41.1 million, respectively, as of June 30, 2023 [7]. - Total assets increased to $153.2 million as of March 31, 2024, compared to $134.2 million as of June 30, 2023 [13].