Natural Alternatives International (NAII) is primarily a producer of vitamins, herbal extracts, and other nutrition and health products. The bulk of the company's income comes from manufacturing these private label products in its two facilities, one in California and the other in Switzerland. The company also owns a sheaf of patents regarding the use of a supplement called beta-alanine which combats muscle fatigue. These patents have been a significant source of licensing revenue for the firm, but have also entailed substantial legal expenses for the firm to pursue infringement claims. Natural Alternatives also produces its own line of products called Pathway to Healing.
What should be of interest to investors, though, is Natural Alternatives's impressive free cash flow...
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