Real Health Boosts Sales and Operations at Natural Alternatives

SAN MARCOS, Calif.—Revenues increased by 15 percent in third quarter at Natural Alternative International (NASDAQ:NAII), reaching $25.2 million and driving growth in operating income by 23 percent. Despite the sales and operating gains, net income fell to $0.39 million or $0.05 per share from $0.41 million or $0.06 per share earned in the same quarter last year.

"We are pleased to see 15-percent growth in revenue resulting from $1.1 million of additional contract manufacturing sales along with an increase in revenue from branded products resulting primarily from our acquisition of Real Health Laboratories (RHL)," said Randell Weaver, president of NAII (www.nai-online.com), who also highlighted the solid growth in operating income. "Our growth in operating income in the first quarter was offset by additional interest expense, relating to the acquisition of RHL and carrying costs of accounts receivable and inventory for a new contract manufacturing relationship, which led to a slight decline in net income and earnings per share compared to last year's first quarter." Weaver expressed confidence revenues in the second quarter will also outpace its comparable previous year's mark.