CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 15.2% to $4.8 million during the third quarter of the fiscal year 2022, as compared to $4.1 million for the third quarter of the fiscal year 2021. The increase in patent and trademark licensing revenue during the third quarter of fiscal 2022 was primarily due to increased shipments to existing customers related in part to athletic activities and gyms reopening in accordance with easing COVID-19 restrictions across the USA as compared to significant restrictions in athletic activities primarily impacting the first nine months of fiscal 2021.
Net income for the nine months ended March 31, 2022, was $7.6 million, or $1.22 per diluted share, compared to net income of $7.8 million, also $1.22 per diluted share, for the nine months ended March 31, 2021. Net income for the first nine months of fiscal 2021 included a $0.9 million discrete tax benefit while the first nine months of fiscal 2022 did not have a corresponding discrete item.
Net sales during the nine months ended March 31, 2022, decreased $15.7 million, or 11.7%, from $134.1 million recorded in the comparable prior year period. For the nine months ended March 31, 2022, private-label contract manufacturing sales decreased by $19.7 million, or 15.8%, from the comparable period last year. CarnoSyn® beta-alanine royalty, licensing and raw material sales revenue increased 41.7% to $13.5 million during the first nine months of fiscal 2022, as compared to $9.6 million for the first nine months of fiscal 2021.
Based on our current sales order volumes and forecasts we have received from our customers, and despite the continued challenges with supply chain and staffing shortages, including challenges from COVID-19 employee absences, we now anticipate our consolidated net sales during the fourth quarter of fiscal 2022 will increase between 18.0% to 21.0% as compared to the fourth quarter of fiscal 2021. We also anticipate operating income as a percent of net sales will increase to between 9.0% and 12.0% for our fourth quarter ending June 30, 2022. The improvement in net sales and operating profitability is expected to be generated from continued growth from one of our newest customers, improved sales demand from our largest customer, improved sales mix and improved staffing levels which will increase our production capacities.
As of March 31, 2022, we had cash of $18.6 million and working capital of $53.8 million, compared to $32.1 million and $58.3 million respectively, as of June 30, 2021. As of March 31, 2022, we had $20.0 million available under our line of credit agreement.
Mark A. Le Doux, Chairman and Chief Executive Officer of NAI stated, “Considering our ongoing staffing and supply chain challenges combined with a decline in sales from our largest customer, we are pleased with the results of our third quarter and first nine months of fiscal 2022. We successfully increased the capacity of our Vista California facility with the installation of a new high-capacity blender, which increased our throughput potential and enabled us to better meet the demands of our customers while we continue construction on our new powder facility. While we were able to partially reduce our backlog going into the fourth quarter, demand remains strong, and we are continuing to add staff and navigate supply chain challenges. We expect to make significant strides to further reduce our backlog during our fourth quarter.”
“We will continue to utilize our robust balance sheet and free cash flow to drive shareholder value through both share buybacks and investments in our business. We continue to believe our stock is trading well below the true value of our Company.”
“I am proud of the efforts of our team as they have diligently navigated the mercurial landscapes of staffing and supply chain combined with the evolving needs of our clients. We still see significant opportunity for growth in both the near and long term and I believe the foundation we have laid over the past couple of years will pave the way for future growth opportunities.”
