Natural Alternatives Intl (NAII): Jumps 17%; Solid Earnings; Moving HQ to Carlsbad

Bolton Flautt  |

Shares of Natural Alternatives International (NAII) were being bought fairly rapidly compared to its average daily volume. The share price flirted with its 52-week high in early trading, jumping all the way up to $13.50 per share before settling to its current price of $12.72, which is still a 10.6 percent gain on volume of 183,000 shares. NAII has a market capitalization of $86 million and an average daily volume of 80,826 shares. The company has a 52-week range between $5.40 and $14.50 per share.

Positive quarterly results announce on Tuesday fueled NAII’s jump today. The company is a leading formulator, manufacturer, and marketer of customized nutritional supplements and on Tuesday announced net income of $3.0 million, or $0.46 per diluted share, on net sales of $30.0 million for the quarter ended March 31, 2016. Quarterly results were favorably impacted by the sale of NAII’s domestic corporate headquarters in San Marcos, CA, that resulted in a one-time gain on the sale, net of tax, equal to $1.0 million, or $0.15 per diluted share. Excluding this transaction, our net income from recurring business during the third quarter of fiscal 2016 was $2.0 million, or $0.31 per diluted share.

Net sales during the three months ended March 31, 2016 increased $10.4 million, or 53.0%, from $19.6 million recorded in the same period last year. Net sales during the nine months ended March 31, 2016 increased 37.9% to $78.5 million from $56.9 million recorded in the same period last year.

Net income in the first nine months of fiscal 2016 was $6.1 million, or $0.92 per diluted share, compared to net income of $2.4 million, or $0.35 per diluted share, in the same period of fiscal 2015.

As of March 31, 2016, NAI had cash of $16.3 million and working capital of $36.5 million compared to $18.6 million and $34.5 million, respectively, as of June 30, 2015.

Mark A. Le Doux, Chairman and Chief Executive Officer stated, "Our Q3 and year to date results represent a culmination of focused customer support on existing and new product launches as well as effective operational execution by our various operating divisions. Higher capacity utilization resulted in greater efficiencies in overhead absorption and economies of scale demonstrating improvements in our operations while maintaining our debt-free balance sheet. In the coming months NAI will be moving its corporate headquarters to a recently purchased and fully paid for facility in Carlsbad California."

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Companies

Symbol Name Price Change % Volume
NAII Natural Alternatives International Inc. 9.61 0.36 3.89 6,191 Trade

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