Natrol Announces Second Quarter Earnings
01/Aug/2002
Natrol, Inc. (NASDAQ:NTOL - News), a manufacturer and distributor of nationally branded dietary supplements, today reported results for the second quarter ended June 30, 2002, announcing earnings of $36,000 on net sales of $17.8 million.
CHATSWORTH, Calif.--(BUSINESS WIRE)--Aug. 1, 2002--Natrol, Inc. (NASDAQ:NTOL - News), a manufacturer and distributor of nationally branded dietary supplements, today reported results for the second quarter ended June 30, 2002, announcing earnings of $36,000 on net sales of $17.8 million.
Net sales decreased 7.4% when compared to the second quarter of 2001 when the Company posted $19.3 million in net sales. Sales for the period were affected by a general industry slowdown and a continued high rate of returns due to realignment of inventory and shelf space within the retail trade. Net income for the second quarter of 2001 amounted to $920,000.
Net sales for the six months ended June 30, 2002 amounted to $35.4 million, 7.7% less than the $38.3 million in net sales reported during the same period in 2001. Net income for the six months ended June 30, 2002 amounted to $63,000 or $0.00 per diluted share for the first six months of 2002 as compared to net income of $1.6 million or $0.12 per diluted share for the six months ended June 30, 2001.
"Significantly, our cash flow has remained strong allowing us to build our cash balances from $5.5 million at year end to $11.2 million at June 30," said Elliott Balbert, President and Chairman of Natrol, when making the earnings announcement. "This reserve gives us substantial strength in facing the challenges ahead. We are focused on developing stronger, broader distribution in multiple business areas and on developing products consumers demand. Our Prolab division will launch a new meal replacement product (MRP), which is core to the sports nutrition arena. We are investing in products that are showing positive strength in a negative marketplace such as Complete Balance and Ester-C. Our strong balance sheet, unencumbered by debt, allows us to continue to invest in talented people. Such investment we believe ensures that Natrol will strengthen its position within the nutraceutical industry."
The statements made in this press release which are not historical facts including statements regarding expectations for future growth of revenue and profits and trends concerning net sales, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. As a result of a number of factors, including the factors described above that Natrol may not currently foresee, Natrol's actual results could differ materially from those set forth in the forward-looking statements. Certain factors that might cause Natrol's actual results to differ materially from those set forth in the forward-looking statements include adverse trends in the dietary supplements industry, intense competition, adverse effects of unfavorable publicity regarding particular products or the Company's industry generally, the Company's dependence on the introduction of successful new products, the Company's ability to gain market share and shelf space in each of its distribution channels, the Company experiencing high rates of product returns, and adverse government regulation, as well as those factors set forth under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ended December 31, 2001 and in the Company's other filings with the Securities and Exchange Commission.
Contact:
Natrol Inc., Chatsworth
Dennis Jolicoeur, 818/739-6000
NATROL, INC. | ||||
June 30, 2002 | Dec. 31, 2001 | |||
Assets | ||||
Current assets: | ||||
Cash and cash equivalents | ||||