NAI Continues to Have Profit Losses

NAI Continues to Have Profit Losses

SAN MARCOS, Calif.--Natural Alternatives International Inc.(NASDAQ:NAII) posted decreased sales and a continued net loss for the 2001 fiscal year (FY01) ended June 30. NAI reported revenues of $42.2 million for FY01, an 11.7-percent drop from $47.8 million logged for 2000. Gross profit for fiscal 2001 increased to $8.2 million, 19.4 percent of net sales, from $3.7 million, or 7.7 percent of net sales, for fiscal 2000. Gross profit for FY01 improved mainly because of savings achieved through bringing the company's packaging operations in-house, a gross savings of $4.6 million. Operating expenses went up to $8.8 million from last year's $8.7 million. The company continued to see negative profits, punching in a net loss of $4.9 million ($0.85 per share lost) compared to $4.5 million ($0.78 per share lost) in the year prior.

"Revenues for 2001 included a $4.8 million increase to $5.7 million in our Direct-to-Consumer (DTC) business launched only 14 months ago," explained Mark LeDoux, chief executive officer, adding that FY00 revenues from DTC were $.88 million. "Our efforts to diversify distribution channels are beginning to generate significant revenue. We are working to create additional growth opportunities and we believe the investments we have been making and continue to make, such as expanding our international sales and manufacturing capacity, will serve us well this year and beyond."