CARLSBAD, Calif., May 14, 2025 (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 $2.2 million, or $0.37 per diluted share, on net sales of $28.8 million for the third quarter of fiscal year 2025 compared to a net loss of $1.6 million, or $0.27 per diluted share, in the third quarter of the prior fiscal year. Net sales during the three months ended March 31, ...

Financial Performance - Net sales for the nine months ended March 31, 2025, increased by 14% to $95.994 million compared to $84.307 million for the same period in 2024[98] - Private-label contract manufacturing sales rose by 16% during the nine months ended March 31, 2025, primarily due to increased orders from a larger customer and new customer shipments[98] - Patent and trademark licensing revenue decreased by 9% to $6.0 million for the nine months ended March 31, 2025, down from $6.6 million in the prior year[99] - The company experienced a net loss of $6.359 million for the nine months ended March 31, 2025, compared to a net loss of $5.343 million for the same period in 2024, representing a 19% increase in loss[106] - Selling, general, and administrative expenses increased by 9% to $12.470 million for the nine months ended March 31, 2025, compared to $11.455 million in the prior year[110] - The gross profit margin for the nine months ended March 31, 2025, was 6.0%, a decrease from 6.5% in the prior year[106] Cash Flow and Liquidity - Net cash provided by operating activities was $2.6 million for the nine months ended March 31, 2025, compared to $1.2 million in the prior year[113] - Cash used in investing activities increased to $2.2 million for the nine months ended March 31, 2025, compared to $2.0 million in the prior year, mainly due to capital expenditures for solar energy generation equipment[118] - Cash used in financing activities rose to $1.8 million for the nine months ended March 31, 2025, compared to $0.4 million in the prior year, reflecting increased usage of the credit facility[119] - As of March 31, 2025, the company had $10.6 million in cash and cash equivalents, with $10.0 million held by NAIE, sufficient to fund current working capital needs for at least the next 12 months[122] Credit Facility and Debt - As of March 31, 2025, the company had $8.5 million of borrowing capacity available on its credit facility, with outstanding borrowings of $2.0 million[120] - The company anticipates non-compliance with financial covenants related to net income requirements and fixed charge coverage ratio in the fourth quarter of fiscal 2025[122] - A tentative agreement with Wells Fargo is in place regarding proposed amended terms to the credit facility, which may include waiving current and past covenant violations[122] - The maturity date of the credit facility was extended from May 23, 2025, to June 23, 2025, allowing time to finalize negotiations for an amended credit agreement[122] - As of March 31, 2025, the company had no off-balance sheet debt or significant transactions that could materially affect its financial condition[123] Operational Focus - The company plans to continue focusing on expanding the commercialization of its beta-alanine patent estate and developing new sales distribution channels[107] - The company incurred litigation and patent compliance expenses of approximately $0.3 million during the nine months ended March 31, 2025[101] Sales Metrics - Days sales outstanding increased to 41 days during the nine months ended March 31, 2025, compared to 30 days in the prior year[114] - Private-label contract manufacturing gross profit margin increased by 1.2 percentage points to a percentage of consolidated net sales for the three months ended March 31, 2025, primarily due to increased sales volume and a favorable product sales mix[116] - Patent and trademark licensing gross profit margin decreased by 2.5 percentage points during the three months ended March 31, 2025, attributed to decreased net sales in this segment[116]

Core Insights - Natural Alternatives International, Inc. (NAI) and CarnoSyn® Brands announced positive clinical trial results for TriBsyn™, demonstrating enhanced bioavailability and efficiency of beta-alanine while eliminating paresthesia, a common side effect [1][5]. Product Overview - TriBsyn™ is a carnosine booster derived from CarnoSyn® beta-alanine, utilizing proprietary Hydro Oleo technology for higher bioavailability and potency, allowing for effective dosages at lower volumes [2][5]. - The formulation enables absorption through multiple pathways, including direct cellular uptake and traditional gastrointestinal routes, enhancing delivery at both cellular and systemic levels [2]. Clinical Study Details - The study evaluated the bioavailability, pharmacokinetics, and tolerability of a 400 mg Hydro Oleo encapsulated beta-alanine complex (TriBsyn™) designed to reduce paresthesia [3]. - A randomized, double-blind, single-dose, three-treatment, three-way crossover study was conducted in healthy older adults, showing that TriBsyn™ (400 mg) achieved a nearly 4.5-fold increase in circulating beta-alanine plasma concentrations compared to 400 mg and a 1.3-fold increase compared to 1200 mg of conventional beta-alanine [3][7]. Sensory Side Effects Assessment - Sensory side effects were assessed using Visual Analogue Score (VAS) and Qualitative Light Symptoms Inventory (QLSI), with no paresthesia reported in the TriBsyn™ group, while conventional beta-alanine groups exhibited increasing paresthesia with dose [4]. - TriBsyn™ recorded a VAS score of 0.62, indicating almost absent symptoms, compared to scores of 2.02 and 4.01 for conventional beta-alanine at 400 mg and 1200 mg, respectively [4]. Market Implications - The results confirm TriBsyn™ as a significant advancement in beta-alanine supplementation, providing scientifically proven claims to improve muscle vitality, working capacity, and cognitive performance, particularly beneficial for the active aging population and those with plant-based diets [5][6]. - NAI's new "paresthesia-free" TriBsyn™ powder allows the company to expand its product offerings within dietary supplements, medical food, and fortified food products [6].

Core Insights - Natural Alternatives International, Inc. (NAI) and CarnoSyn® Brands announced positive clinical trial results for TriBsyn™, demonstrating enhanced bioavailability and efficiency of beta-alanine while eliminating paresthesia, a common side effect [1][5] Product Overview - TriBsyn™ is a carnosine booster derived from CarnoSyn beta-alanine, utilizing proprietary Hydro Oleo technology for higher bioavailability and potency, allowing for effective dosages at lower volumes [2][5] - The formulation enables absorption through multiple pathways, including direct cellular uptake and traditional gastrointestinal routes, enhancing delivery at both cellular and systemic levels [2] Clinical Study Details - The study evaluated the bioavailability, pharmacokinetics, and tolerability of a 400 mg Hydro Oleo encapsulated beta-alanine complex (TriBsyn™) designed to reduce paresthesia [3] - A randomized, double-blind, single-dose, three-treatment, three-way crossover study was conducted in healthy older adults, showing TriBsyn™ (400 mg) achieved a 4.5-fold increase in circulating beta-alanine plasma concentrations compared to 400 mg of conventional beta-alanine and a 1.3-fold increase compared to 1200 mg of conventional beta-alanine [3][7] Sensory Side Effects Assessment - No paresthesia or adverse effects were reported in the TriBsyn™ group, while conventional beta-alanine groups exhibited increasing paresthesia with dose [4] - TriBsyn™ recorded a Visual Analogue Score (VAS) of 0.62, indicating almost absent symptoms, compared to scores of 2.02 and 4.01 for conventional beta-alanine at 400 mg and 1200 mg, respectively [4] Market Implications - The results confirm TriBsyn™ as a new standard in beta-alanine supplementation, particularly beneficial for the active aging population, GLP-1 users, and those with plant-based diets [5] - NAI aims to broaden its product offerings within the dietary supplement category, medical food, and other fortified food products with the introduction of the "paresthesia-free" TriBsyn™ powder [6]

Core Viewpoint - Natural Alternatives International, Inc. reported a net loss of $2.2 million for Q2 FY2025, an improvement from a net loss of $3.1 million in the same quarter of the previous year, with net sales increasing to $34.1 million, a 35% rise compared to $25.2 million in Q2 FY2024 [1][2]. Financial Performance - Net sales for the three months ended December 31, 2024, increased by $8.9 million, or 35%, reaching $34.1 million compared to $25.2 million in the prior year [2]. - For the six months ended December 31, 2024, net sales rose by $8.1 million, or 14%, totaling $67.2 million compared to $59.2 million in the same period of the previous year [5]. - Private-label contract manufacturing sales increased by 40% to $32.3 million in Q2 FY2025, driven by higher orders from major customers and new customer shipments [2]. - CarnoSyn beta-alanine royalty, licensing, and raw material sales revenue decreased by 18% to $1.8 million in Q2 FY2025, primarily due to reduced orders from existing customers [3]. Losses and Expenses - The company reported a net loss of $4.2 million, or $0.70 per diluted share, for the six months ended December 31, 2024, compared to a net loss of $3.8 million, or $0.64 per diluted share, for the same period in 2023 [4]. - The loss from operations for the three and six months ended December 31, 2024, was attributed to a change in sales mix, increased manufacturing costs, and higher legal expenses related to patent expansion [6]. Cash and Working Capital - As of December 31, 2024, the company had cash of $8.7 million and working capital of $36.9 million, down from $12.0 million and $38.1 million, respectively, as of June 30, 2024 [7]. Management Commentary - The CEO expressed satisfaction with revenue growth and reduced anticipated losses, while acknowledging challenges such as customer order flow and currency valuations [8].

Financial Performance - Net sales for the six months ended December 31, 2024, increased by 14% to $67.2 million compared to $59.2 million for the same period in 2023[97] - The company experienced a net loss of $4.2 million for the six months ended December 31, 2024, an 11% increase compared to a net loss of $3.8 million in the same period of 2023[102] - Patent and trademark licensing revenue increased by 9% to $4.3 million for the six months ended December 31, 2024, compared to $3.9 million in the prior year[98] Expenses - Selling, general, and administrative expenses increased by 14% to $8.5 million during the six months ended December 31, 2024, primarily due to higher compensation and legal expenses[110] - The company incurred litigation and patent compliance expenses of approximately $0.3 million during the six months ended December 31, 2024, compared to $0.1 million in the prior year[100] Profit Margins - The gross profit margin for the six months ended December 31, 2024, was 5.8%, slightly down from 6.0% in the prior year[106] - Private-label contract manufacturing gross profit margin increased by 5.5 percentage points during the three months ended December 31, 2024, primarily due to increased sales volume[116] - Patent and trademark licensing gross profit margin decreased by 2.1 percentage points during the three months ended December 31, 2024, due to decreased net sales in this segment[116] Cash Flow and Financing - Cash used in investing activities was $1.4 million for the six months ended December 31, 2024, down from $1.7 million in the prior year[117] - Cash provided by financing activities was $1.4 million for the six months ended December 31, 2024, compared to using $0.1 million in the prior year[118] - As of December 31, 2024, the company had $10.8 million of borrowing capacity available on its credit facility, with outstanding borrowings of $5.0 million[119] - The company had $8.7 million in cash and cash equivalents as of December 31, 2024, with $8.2 million held by NAIE[120] Future Outlook - The company anticipates a net loss in the second half of fiscal 2025, despite an overall increase in sales forecasted for the year[102] - The company plans to continue focusing on expanding its beta-alanine patent estate and developing new sales channels in the Wellness and Healthy Aging category[107] - The company anticipates non-compliance with financial covenants related to net income requirements and fixed charge coverage ratio in the next two quarters of fiscal 2025[120] Inventory and Sales - Days sales outstanding increased to 46 days during the six months ended December 31, 2024, compared to 27 days in the prior year[114] - Changes in inventory provided $1.2 million in cash during the six months ended December 31, 2024, compared to $10.1 million in the prior year period[115] Compliance and Accounting - There were no off-balance sheet arrangements or debt as of December 31, 2024, that would materially affect the company's financial condition[122] - Recent accounting pronouncements do not materially affect the company's financial position or results of operations[123]

Financial Performance - Net sales for the three months ended September 30, 2024, were $33.15 million, a 2% decrease compared to $33.97 million for the same period in 2023[97]. - Private-label contract manufacturing sales decreased by 5% to $30.63 million, primarily due to reduced orders from a larger customer[87]. - Patent and trademark licensing revenue increased by 42% to $2.5 million, up from $1.78 million in the prior year[88]. - Gross profit for the three months ended September 30, 2024, was $2.26 million, representing a gross profit margin of 6.8%, down from 9.2% in the prior year[97]. - Loss from operations was $1.84 million, a 238% increase compared to a loss of $0.54 million in the same period last year[92]. - Selling, general, and administrative expenses rose by 11% to $4.1 million, primarily due to increased compensation and legal fees[101]. - Cash used in operating activities was $3.4 million for the three months ended September 30, 2024, compared to cash provided of $4.5 million in the same period last year[104]. Strategic Initiatives - The company plans to continue focusing on expanding its beta-alanine patent estate and developing new sales channels in the Wellness and Healthy Aging markets[94]. - The new product TriBsyn™ was announced in August 2024, aimed at enhancing market penetration in the Wellness and Healthy Aging segments[89]. Financial Position and Liquidity - As of September 30, 2024, the company had $12.5 million of borrowing capacity on its credit facility, with outstanding borrowings of $5.4 million[109]. - As of September 30, 2024, the company had $10.2 million in cash and cash equivalents, with $9.9 million held by NAIE[110]. - The company anticipates non-compliance with financial covenants related to net income requirements and fixed charge coverage ratio in the next two quarters of fiscal 2025[110]. - The company is negotiating a potential revised credit facility or waiver with Wells Fargo, which has not yet exercised any options under the Credit Agreement[110]. - There is no assurance that the company will successfully negotiate a revised credit facility or the terms of such a facility[110]. - As of September 30, 2024, the company did not have any off-balance sheet debt or significant relationships that could materially affect its financial condition[111]. - Recent accounting pronouncements are discussed in the notes to the consolidated financial statements, with no material effects on financial position or results of operations identified[112].

Financial Performance - The company reported a net loss of $2.0 million, or $0.33 per diluted share, on net sales of $33.2 million for the first quarter of fiscal year 2025, compared to a net loss of $0.7 million, or $0.12 per diluted share, in the same period of the prior fiscal year [1] - Net sales decreased by $0.8 million, or 2.4%, to $33.2 million compared to $34.0 million in the prior year period [2] - Private-label contract manufacturing sales decreased by $1.6 million, or 4.8%, primarily due to reduced orders from one larger customer, partially offset by increased shipments from other existing and new customers [2] - CarnoSyn® beta-alanine royalty, licensing, and raw material sales revenue increased by 41.6% to $2.5 million compared to $1.8 million in the prior year period [3] - The company anticipates a net loss in the first half of fiscal 2025, net income in the second half, and an overall net loss for the fiscal year [4] Operational Challenges - The loss from operations was primarily due to reduced sales, a change in sales mix from the private-label contract manufacturing segment, and increased manufacturing costs, including labor, supplies, rent, and freight [4] - Selling, general, and administrative expenses increased to $4.095 million, or 12.4% of net sales, compared to $3.681 million, or 10.8% of net sales, in the prior year period [10] Liquidity and Capital - As of September 30, 2024, the company had $10.1 million in cash and $38.0 million in working capital, compared to $12.0 million and $38.1 million, respectively, as of June 30, 2024 [5] - The company had $12.5 million of borrowing capacity on its credit facility, with $5.4 million in outstanding borrowings [5] Strategic Outlook - The company remains optimistic about securing additional revenues and profitability through expanded product offerings and new client relationships [6] - The recent U.S. election has highlighted a consumer-driven mandate to promote health, which could benefit the nutraceutical and vitamin industry [6] - The company is committed to working with the new administration to foster greater understanding and acceptance of properly made health products [6] Industry Context - The company operates in the nutritional supplements industry, providing customized products and strategic partnering services, including scientific research, clinical studies, and regulatory assistance [7] - The industry is poised to meet increasing consumer demand for high-quality health products, driven by a renewed emphasis on health and wellness [6]

Company Overview - Natural Alternatives International, Inc. (NAI) is a leading formulator, manufacturer, and marketer of nutritional supplements, headquartered in Carlsbad, California [6] - NAI offers a comprehensive partnership approach that includes scientific research, proprietary ingredients, product formulation, testing, marketing management, and regulatory review [6] Product Launch - NAI has introduced a new carnosine booster called TriBsyn™, which utilizes proprietary technology to enhance beta-alanine bioavailability and absorption while eliminating the common paresthesia sensation [2] - TriBsyn™ is positioned to appeal to a wide range of consumers, including older adults, vegetarians, and vegans, looking to increase their carnosine levels [2] Strategic Partnership - NAI has formed a distribution partnership with B&D Nutritional Ingredients, effective October 1, 2024, to distribute TriBsyn™ in the U.S. dietary supplement, functional food, and beverage markets [1][2] - B&D Nutritional Ingredients has been a prominent raw material distributor in the dietary supplement industry since 1993 and is recognized for its commitment to customer service [3][4] Market Positioning - TriBsyn™ is expected to enhance B&D's specialty ingredient portfolio, which includes clinically supported and unique dietary ingredients [4] - The partnership aims to drive awareness and growth of TriBsyn™, which was launched in August 2024 [3] Industry Context - B&D Nutritional Ingredients specializes in the sales, distribution, and marketing of high-quality dietary ingredients across various sectors, including dietary supplements and functional foods [4] - The dietary supplement industry is increasingly focused on innovative ingredients that support health benefits such as anti-aging, cognitive function, and physical activity [4]

Core Viewpoint - Natural Alternatives International, Inc. reported a significant decline in both net sales and profitability for the fourth quarter and fiscal year 2024, indicating challenges in their private-label contract manufacturing segment and overall market conditions [1][4]. Financial Performance - The company experienced a net loss of $1.9 million, or ($0.32) per diluted share, for Q4 FY 2024, compared to a net income of $2.0 million, or $0.35 per diluted share, in Q4 FY 2023 [1]. - For the fiscal year 2024, the net loss was $7.2 million, or ($1.23) per diluted share, compared to a net income of $2.5 million, or $0.43 per diluted share, for fiscal year 2023 [4]. - Net sales for Q4 FY 2024 decreased by $6.4 million, or 18%, to $29.5 million from $35.9 million in the same period last year [2]. - Annual net sales for FY 2024 decreased by $40.2 million, or 26%, to $113.8 million compared to $154.0 million in FY 2023 [5]. Segment Performance - Private-label contract manufacturing sales fell by 14% to $27.6 million in Q4 FY 2024, primarily due to reduced orders from a major customer aiming to cut excess inventory [2]. - CarnoSyn® beta-alanine royalty, licensing, and raw material sales revenue decreased by 48% to $1.85 million in Q4 FY 2024, down from $3.57 million in Q4 FY 2023, attributed to lower raw material sales and unfavorable volume rebate estimates [3]. Operational Insights - The company reported a loss from operations for both the three and twelve months ended June 30, 2024, mainly due to a slowdown in sales within the private-label contract manufacturing segment [6]. - Despite the current challenges, the company anticipates a significant increase in sales for fiscal 2025, projecting a net loss in the first half but expecting net income in the second half [6]. Cash and Working Capital - As of June 30, 2024, the company had cash of $12.0 million and working capital of $38.1 million, a decrease from $13.6 million and $41.1 million, respectively, as of June 30, 2023 [7]. Strategic Developments - The company re-opened its Carlsbad powder facility in Q4 FY 2024 to meet customer demands and is optimistic about new business opportunities, including the introduction of a new ingredient, TriBsynTM, at the ESPEN conference [8].