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 Many first-time heart attack victims don't get second chances — about 50% die. The same can be true for a business. At-risk businesses can succumb to pressures and fail - or they can learn from the experience, make adjustments and get healthy. |
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Fiscal 2002 was about getting a second chance. For NAI, the second chance meant dealing with fundamental issues affecting our performance. For me, it meant experiencing a first heart attack at the age of 47.
Many first-time heart attack victims don't get second chances - about 50% die. The same can be true for a business. At-risk businesses can succumb to pressures and fail - or they can learn from the experience, make adjustments and get healthy. In fiscal 2002, the NAI business and my personal health were at-risk. In both cases, the result was a commitment to get healthy by asking the tough questions needed to make intelligent choices and set focused priorities. The questions are quite similar for restoring business health and personal health: How do I repair the damage? How do I avoid these challenges in the future? How do I make certain the people who depend on the business (and me) can be assured the business (and I) will be there for them? For NAI, the answers included reducing debt, focusing on our core competence, ensuring adequate professional resources were in place for new initiatives, and delivering on our promises to customers. So how are we doing? In fiscal year 2002, NAI returned to health. Sales rose 19% to $50 million. Net income rose to $3.88 million from the prior year's net loss of $4.89 million. Income from operations improved considerably and debt was reduced. A strengthened management team was put in place and is seizing the opportunity for success. The NAI workforce is energized by our accomplishments. Our partnerships continue to be strong and enduring. Our vision is clear and our goals achievable because we are focusing on the fundamentals and executing on our commitments. Our vision is to make a positive difference in the health of people all over the world. We do this responsibly by investing in science-based research that produces quality supplements offering positive results. We invest in quality processes and quality people. And we energize people and empower them to succeed. We believe that delivering products of unassailable quality and science-based efficacy is the foundation for driving revenues higher and increasing profits. As a result, we believe NAI employees, shareholders and customers will prosper. At NAI, we are committed to investor confidence by providing financial information that is accurate, complete and timely. NAI is a company of substance — management does not engage in off-balance sheet transactions or derivative accounting. NAI deals primarily with tangible assets. What you see is what you get. As for me, I am now healthy and grateful to be here to see the results of our hard work. I am also pleased to report that NAI and I look forward to a strong and healthy 2003. Sincerely,
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