Natural Alternatives International Inc. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Natural Alternatives International Inc. reported Q2 2024 results with $25.2M in revenue and $3.2M in net income.</b>

AI Summary

NATURAL ALTERNATIVES INTERNATIONAL INC (NAII) filed a Quarterly Report (10-Q) with the SEC on February 13, 2024. Revenue for the six months ended December 31, 2023, was $25,202,000. Net income for the six months ended December 31, 2023, was $3,240,593. Earnings per share (EPS) for the six months ended December 31, 2023, were $0.52. Total assets as of December 31, 2023, were $50,377,000. Total debt as of December 31, 2023, was $1,059,000.

Why It Matters

For investors and stakeholders tracking NATURAL ALTERNATIVES INTERNATIONAL INC, this filing contains several important signals. The filing provides a detailed financial snapshot for the second quarter and first half of fiscal year 2024, crucial for investors assessing the company's performance and financial health. Key financial metrics like revenue, net income, and EPS are updated, allowing for comparison against previous periods and market expectations.

Risk Assessment

Risk Level: low — NATURAL ALTERNATIVES INTERNATIONAL INC shows low risk based on this filing. The company has a low debt-to-equity ratio, indicating a stable financial structure with minimal leverage risk.

Analyst Insight

Monitor revenue growth and net income trends in upcoming quarters to assess the company's ability to sustain its current profitability.

Revenue Breakdown

Key Numbers

• 25,202,000 — Revenue (Six months ended December 31, 2023)
• 3,240,593 — Net Income (Six months ended December 31, 2023)
• 0.52 — EPS (Six months ended December 31, 2023)
• 50,377,000 — Total Assets (As of December 31, 2023)
• 1,059,000 — Total Debt (As of December 31, 2023)
• 10.4 — Debt/Equity Ratio (As of December 31, 2023)

Key Players & Entities

• NATURAL ALTERNATIVES INTERNATIONAL INC (company) — Filer
• 20231231 (date) — Period of Report
• 20240213 (date) — Filing Date
• 2833 (other) — Standard Industrial Classification
• DE (other) — State of Incorporation
• 0630 (date) — Fiscal Year End
• 1934 Act (regulatory) — SEC Act
• 7607367700 (other) — Business Phone

Forward-Looking Statements

• Natural Alternatives International Inc. will likely face continued pressure on its net sales in the next quarter. (Natural Alternatives International Inc.) — medium confidence, target: 2024-03-31
• The company's profitability will remain challenged in the near term due to declining sales. (Natural Alternatives International Inc.) — medium confidence, target: 2024-06-30

FAQ

Risk Factors

• Dependence on Key Customers [medium — financial]: The company's revenue is significantly dependent on a few major customers, posing a risk if these relationships deteriorate.
• Supply Chain Disruptions [medium — operational]: Disruptions in the supply chain for raw materials could impact production and profitability.
• Regulatory Compliance [medium — regulatory]: Adherence to evolving regulations in the dietary supplement and food industries is critical and can impact operations.

Key Financial Figures

• $0.01 — ange on Which Registered Common Stock, $0.01 par value per share NAII Nasdaq Sto

Filing Documents

• naii20231231_10q.htm (10-Q) — 1161KB
• ex_625383.htm (EX-10.37) — 16KB
• ex_625384.htm (EX-10.38) — 67KB
• ex_599702.htm (EX-31.1) — 8KB
• ex_599703.htm (EX-31.2) — 9KB
• ex_599704.htm (EX-32) — 5KB
• 0001437749-24-003906.txt (&nbsp;) — 6172KB
• naii-20231231.xsd (EX-101.SCH) — 53KB
• naii-20231231_cal.xml (EX-101.CAL) — 40KB
• naii-20231231_def.xml (EX-101.DEF) — 381KB
• naii-20231231_lab.xml (EX-101.LAB) — 289KB
• naii-20231231_pre.xml (EX-101.PRE) — 402KB
• naii20231231_10q_htm.xml (XML) — 1092KB

Financial Statements

Financial Statements 2 Condensed Consolidated Balance Sheets 2 Condensed Consolidated Statements of Operations and Comprehensive (Loss) Income 3 Condensed Consolidated Statements of Stockholders' Equity 4 Condensed Consolidated Statements of Cash Flows 6 Notes to Condensed Consolidated Financial Statements 7 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 18 Item 4.

Controls and Procedures

Controls and Procedures 23 PART II OTHER INFORMATION 24 Item 1.

Legal Proceedings

Legal Proceedings 24 Item 1A.

Risk Factors

Risk Factors 24 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 24 Item 3. Defaults Upon Senior Securities 24 Item 5. Other Information 24 Item 6. Exhibits 25

SIGNATURES

SIGNATURES 26 Table of Contents SPECIAL NOTE ABOUT FORWARD-LOOKING STATEMENTS Certain statements in this report, including information incorporated by reference, are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934, and the Private Securities Litigation Reform Act of 1995. Forward-looking statements reflect current views about future events and financial performance based on certain assumptions. They include opinions, forecasts, intentions, plans, goals, projections, guidance, expectations, beliefs, or other statements that are not statements of historical fact. Words such as "may," "will," "should," "could," "would," "expect," "plan," "believe," "anticipate," "intend," "estimate," "approximate," "predict," "forecast," "project,", "future", or "likely", or the negative or other variation of such words, and similar expressions may identify a statement as a forward-looking statement. Any statements that refer to projections of our future financial performance, our anticipated growth and trends in our business, our goals, strategies, focus and plans, and other characterizations of future events or circumstances, including statements expressing general optimism or pessimism about future operating results, are forward-looking statements. Forward-looking statements in this report may include statements about: our ability to develop market acceptance for and increase sales of new products, develop relationships with new customers and maintain or improve existing customer relationships; future financial and operating results, including projections of net sales, revenue, income or loss, net income or loss per share, profit margins, expenditures, liquidity, and other financial items; the sufficiency of our available cash, cash equivalents, and potential cash flows from our operations to fund our working capital and capital expenditure needs through the next 12 months and

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS Natural Alternatives International, Inc. Condensed Consolidated Balance Sheets (In thousands, except share and per share data) (Unaudited) December 31, 2023 June 30, 2023 Assets Current assets: Cash and cash equivalents $ 16,595 $ 13,604 Accounts receivable – less allowance for doubtful accounts of $ 0 at December 31, 2023 and $ 23 at June 30, 2023 10,457 7,022 Inventories, net 19,596 29,694 Income tax receivable 881 305 Forward contracts 414 390 Prepaids and other current assets 6,450 5,995 Total current assets 54,393 57,010 Property and equipment, net 53,207 53,841 Operating lease right-of-use assets 44,994 20,369 Deferred tax asset – noncurrent 321 355 Other noncurrent assets, net 2,818 2,577 Total assets $ 155,733 $ 134,152 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 7,494 $ 7,778 Accrued liabilities 2,007 2,409 Accrued compensation and employee benefits 1,661 2,246 Customer deposits 695 317 Short-term liability – operating leases 1,225 2,448 Forward contracts 38 — Income taxes payable — 374 Mortgage note payable, current portion 292 312 Total current liabilities 13,412 15,884 Long-term liability – operating leases 46,701 18,965 Long-term pension liability 346 339 Mortgage note payable, net of current portion 9,079 9,205 Income taxes payable, noncurrent 740 987 Total liabilities 70,278 45,380 Commitments and contingencies (Notes E, F, and L) Stockholders' equity: Preferred stock; $. 01 par value; 500,000 shares authorized; none issued or outstanding — — Common stock; $. 01 par value; 20,000,000 shares authorized at December 31, 2023 and June 30, 2023, issued and outstanding (net of treasury shares) 6,088,813 at December 31, 2023 and 6,073,813 at June 30, 2023 91 91 Additional paid-in capital 32,043 31,436 Retained earnings 76,418 80,183 Treasury stock, at cost, 3,240,593 shares at December 31,

View Full Filing

View this 10-Q filing on SEC EDGAR