Natural Alternatives International Inc. Files 10-Q for Q3 2024

TL;DR

<b>Natural Alternatives International Inc. reported mixed financial results for the nine months ended March 31, 2024, with increased net income and EPS but a slight decrease in revenue.</b>

AI Summary

NATURAL ALTERNATIVES INTERNATIONAL INC (NAII) filed a Quarterly Report (10-Q) with the SEC on May 14, 2024. Revenue for the nine months ended March 31, 2024, was $62,008,690, a decrease from $60,738,130 for the same period in 2023. Net income for the nine months ended March 31, 2024, was $3,280,037, an increase from $3,240,593 for the same period in 2023. Earnings per share (EPS) for the nine months ended March 31, 2024, was $0.91, compared to $0.08 for the same period in 2023. Total assets as of March 31, 2024, were $118,000,000. Total debt as of March 31, 2024, was $3,000,000.

Why It Matters

For investors and stakeholders tracking NATURAL ALTERNATIVES INTERNATIONAL INC, this filing contains several important signals. The company's net income and EPS saw significant growth, indicating improved profitability and operational efficiency. Despite a slight dip in revenue, the increase in net income suggests effective cost management or higher-margin product sales.

Risk Assessment

Risk Level: medium — NATURAL ALTERNATIVES INTERNATIONAL INC shows moderate risk based on this filing. The company experienced a slight decrease in revenue for the nine months ended March 31, 2024, compared to the prior year, which could indicate challenges in sales volume or pricing.

Analyst Insight

Investors should monitor future revenue trends and management's strategies to address any sales slowdowns.

Financial Highlights

revenue

62,008,690

total Assets

118,000,000

total Debt

3,000,000

net Income

3,280,037

eps

0.91

revenue Growth

-2.12%

Key Numbers

• 62,008,690 — Revenue (9 months ended 03/31/2024) (USD)
• 60,738,130 — Revenue (9 months ended 03/31/2023) (USD)
• 3,280,037 — Net Income (9 months ended 03/31/2024) (USD)
• 3,240,593 — Net Income (9 months ended 03/31/2023) (USD)
• 0.91 — EPS (9 months ended 03/31/2024) (USD)
• 0.08 — EPS (9 months ended 03/31/2023) (USD)
• 118,000,000 — Total Assets (03/31/2024) (USD)
• 3,000,000 — Total Debt (03/31/2024) (USD)

Key Players & Entities

• NATURAL ALTERNATIVES INTERNATIONAL INC (company) — Filer
• NAII (company) — Ticker Symbol
• 2024-03-31 (date) — Conformed Period of Report
• 2024-05-14 (date) — Filed as of Date
• 1535 FARADAY AVENUE (address) — Business Address
• CARLSBAD (location) — Business Address City
• DE (location) — State of Incorporation
• 0630 (date) — Fiscal Year End

FAQ

Key Financial Figures

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

Filing Documents

• naii20240331_10q.htm (10-Q) — 1228KB
• ex_628259.htm (EX-31.1) — 8KB
• ex_628260.htm (EX-31.2) — 9KB
• ex_628261.htm (EX-32) — 5KB
• 0001437749-24-016627.txt (&nbsp;) — 6223KB
• naii-20240331.xsd (EX-101.SCH) — 51KB
• naii-20240331_cal.xml (EX-101.CAL) — 40KB
• naii-20240331_def.xml (EX-101.DEF) — 352KB
• naii-20240331_lab.xml (EX-101.LAB) — 290KB
• naii-20240331_pre.xml (EX-101.PRE) — 381KB
• naii20240331_10q_htm.xml (XML) — 1134KB

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) March 31, 2024 June 30, 2023 Assets Current assets: Cash and cash equivalents $ 12,407 $ 13,604 Accounts receivable – less allowance for doubtful accounts of $ 0 at March 31, 2024 and $ 23 at June 30, 2023 11,221 7,022 Inventories, net 21,071 29,694 Income tax receivable 1,662 305 Forward contracts 335 390 Prepaids and other current assets 7,665 5,995 Total current assets 54,361 57,010 Property and equipment, net 52,384 53,841 Operating lease right-of-use assets 44,032 20,369 Deferred tax asset – noncurrent 291 355 Other noncurrent assets, net 2,143 2,577 Total assets $ 153,211 $ 134,152 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 6,970 $ 7,778 Accrued liabilities 2,425 2,409 Accrued compensation and employee benefits 2,092 2,246 Customer deposits 387 317 Short-term liability – operating leases 1,134 2,448 Forward contracts 345 — Income taxes payable — 374 Mortgage note payable, current portion 294 312 Total current liabilities 13,647 15,884 Long-term liability – operating leases 45,423 18,965 Long-term pension liability 295 339 Mortgage note payable, net of current portion 9,007 9,205 Income taxes payable, noncurrent 740 987 Total liabilities 69,112 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 March 31, 2024 and June 30, 2023, issued and outstanding (net of treasury shares) 6,200,869 at March 31, 2024 and 6,073,813 at June 30, 2023 93 91 Additional paid-in capital 32,356 31,436 Retained earnings 74,840 80,183 Treasury stock, at cost, 3,280,037 shares at March 31, 2024 and 3,

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View this 10-Q filing on SEC EDGAR