CARLSBAD, Calif., Aug. 16,
2023 /PRNewswire/ -- Natural Alternatives
International, Inc. ("NAI") (Nasdaq: NAII), a leading formulator,
manufacturer, and marketer of customized nutritional supplements,
today announced a temporary closure of its new facility in
Carlsbad, California, opened
earlier this year to expand NAI's production and add high-speed
powder blending and packaging to its manufacturing capabilities,
with an initial objective of handling current and estimated orders
from one of its largest customers.
Due to this customer's efforts to rebalance supply and
demand, it is temporarily ceasing purchases from Natural
Alternatives. As a result, NAI has determined to temporarily close
its new high-speed powder blending and packaging facility and has
provided sixty days advance notice to most of the staff at that
facility, who will be furloughed starting in early October and
lasting until approximately December 31,
2023. NAI currently expects these economic factors will be
short lived, and in order to influence furloughed employees to
return, NAI will pay for the health insurance costs of all
furloughed employees during the employee's furlough period, through
December 31, 2023. NAI expects to
begin shipping new orders to this customer during the first quarter
of calendar 2024.
Reduction of these anticipated orders and the closure of the
facility is anticipated to have an adverse effect on our results of
operations and financial condition primarily during the last
calendar quarter of this year, and possibly into the early part of
2024.
Mark A. Le Doux, Chairman and
Chief Executive Officer of NAI stated, "Despite the recent
volatility in our industry, we remain optimistic about the
long-term growth trends for nutritional supplements. We anticipate
continued near term headwinds associated with both the overall
macro-economic environment and factors specific to our industry. We
will continue to aggressively seek opportunities to increase our
sales, our customer base, and evaluate further cost reduction
opportunities."
NAI, headquartered in Carlsbad,
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. For more information about NAI, please see our
website at http://www.nai-online.com.
This press release contains forward-looking statements within
the meaning of Section 21E of the Securities Exchange Act of 1934
that are not historical facts and information. These statements
represent our intentions, expectations and beliefs concerning
future events, including, among other things, our ability to
increase sales to new and existing customers, our ability to retain
and hire new employees when the cause of the current furloughs
lift, and our future revenue profits and financial condition. We
wish to caution readers these statements involve risks and
uncertainties that could cause actual results and outcomes for
future periods to differ materially from any forward-looking
statement or views expressed herein. NAI's financial performance
and the forward-looking statements contained herein are further
qualified by other risks, including those set forth from time to
time in the documents filed by us with the Securities and Exchange
Commission, including our most recent Annual Report on Form
10-K.
CONTACT – Michael Fortin, Chief
Financial Officer, Natural Alternatives International, Inc., at
760-736-7700 or investor@nai-online.com.
Website: http://www.nai-online.com
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SOURCE Natural Alternatives International, Inc.
