Natural Alternatives Internatio (NAII) research, news, and more from GeoInvesting

Company description

Tue, 03 Aug 2010 04:00:00 GMT

NAI, headquartered in San Marcos, California, is a leading formulator, manufacturer and marketer of nutritional supplements and provides strategic partnering services to its customers. Our comprehensive partnership approach offers a wide range of innovative nutritional products and services to our clients including: scientific research, clinical studies, proprietary ingredients, customer-specific nutritional product formulation, product testing and evaluation, marketing management and support, packaging and delivery system design, regulatory review and international product registration assistance.

Research

Tue, 07 May 2019 16:22:20 GMT

Natural Alternatives International (NASDAQ:NAII) ($13.68; $102M market cap) a leading formulator, manufacturer and marketer of customized nutritional supplements saw shares hit a new 52 week high in yesterday’s trading session. With a trailing 12 month EPS of $1.53 and recent approval to enter the Japanese Market after a 3 year application process, we are keeping NAII on close watch.

This is not our first go around with NAII - we have been tracking the Company for years but always with a cautious eye due to its customer concentration and sporadic earnings history. While earnings have steadied some, its largest customer accounted for 58% of overall sales in 2018, a trend the company sees continuing for 2019. However, we want to learn more about the potential impact Japan could have on diversifying its revenue base.

Research

Tue, 20 Sep 2016 16:25:58 GMT

NAII ($10.16; was marked up 20%)announced Q4 2016 results:

Sales of $35.7 vs $22.6 million in the prior year
Non GAAP EPS of $0.55 vs $0.22

Quotes from management:

"Fiscal year 2016 will go down as a landmark year for the company in sales and earnings per share. On a quarterly basis, the fourth quarter also generated considerable growth in EPS. This result was achieved through the hard work of many team members of the company. We remain debt-free with a strong balance sheet and continue to seek ways of expanding our presence in the international marketplace and leading by example.

We recently completed an expansion of our state of the art facilities in Lugano, Switzerland, increasing our capacity to produce powdered supplement products and solid dose forms. We continue to invest in essential research, and we are undertaking expansion of our solid dose coating systems in California and have also recently increased our encapsulation capacity there.”

On May 12, 2016 westated we had been tracking NAII for years but always with a cautious eye due to its customer concentration and sporadic earnings history. The stock was at $12.60 at the time of that note and has since pulled back to low $10 level, prior to this mornings mark up.

The customer concentration issue remains with its largest customer accounting for 43%. However, its second largest customer has come down as a % sales from 16%to 12%.

Research

Thu, 12 May 2016 16:44:52 GMT

Taking A Closer Look at NAII

We have been tracking NAII ($12.62) for years but always with a cautious eye due to its customer concentration and sporadic earnings history. After reporting 3 straight quarters of strong top and bottom line growth we have decided to dig into the story further. Yesterday the Company reported strong Q3 2016 results, with Non-GAAP EPS of $0.31 on 53% sales growth. NAII is now trading at a trailing P/E of 13.7; if we apply a trailing P/E of 17, which it was trading at prior to this quarter, we get a near term price target of $15.50. However, we are looking into the claims raised by a Seeking Alpha contributor last week regarding a large insider being accused of stock manipulation and claims of growth slowing in its Carnosyn product line which accounts for 20% of sales.

http://seekingalpha.com/article/3969471-large-downside-expected-near-term-natural-alternatives-international-inc

Comments & Business Outlook

Mon, 14 Nov 2011 05:00:00 GMT

First Quarter 2012 Results

Net sales during the three months ended September 30, 2011 increased $5.0 million or 37.3% from $13.4 million recorded in the comparable prior year period
Net income in the first quarter of fiscal 2012 was $1.5 million or $0.22 per diluted share compared to net income of $912,000 or $0.13 per diluted share in the first quarter of fiscal 2011.

Mark A. LeDoux, NAI Chairman and Chief Executive Officer, commented, "The first quarter of this fiscal year has demonstrated the power of focus and execution, coupled with improvement in product requirements by our current customers. We believe our customers engaged in direct sales to consumers are experiencing some measure of growth as a result of improved economic conditions in their distribution channels. By managing our fixed costs, expanding market presence with intellectual property unique to NAI, and executing on our corporate business plan, we are starting to see significant benefits to both the top line and more importantly the bottom line of our business. We continue to work hard as an international team to focus on exceeding our customers' expectations, while delivering excellent value to our esteemed clients."