NATROL REPORTS FIRST QUARTER EARNINGS
14/May/2004
Natrol, Inc. (NASDAQ: NTOL - news) today announced financial results for the quarter ended March 31, 2004.
CHATSWORTH, Calif. - (BUSINESS WIRE)-May 14, 2004 - Natrol, Inc. (NASDAQ: NTOL - news) today announced financial results for the quarter ended March 31, 2004.
The Company recorded net income and income from continuing operations of $450,000 or $0.03 per share for the quarter ended March 31, 2004 as compared to income from continuing operations of $228,000 or $0.02 per share and a net loss of $124,000 or $0.01 per share in the quarter ended March 31, 2003. During the first quarter of 2003, the Company recorded a loss of $352,000 or ($0.03) from operations which were discontinued in the fourth quarter of 2003.
Net sales from continuing operations increased 7.5%, or $1.4 million, to $20.4 million for the three months ended March 31, 2004 from $19.0 million for the three months ended March 31, 2003.
"From a revenue perspective, Q-1 2004 was our best quarter since Q-3 of 2000,"noted Elliott Balbert, Natrolâs President and Chairman. "It is the first quarter Natrol has broken the $20 million barrier in more than two years. Although a single quarter cannot be characterized as a trend, management is nonetheless pleased to be able to announce top line momentum. The doubling of our net income from continuing operations is a second positive step. Our balance sheet is strong. We closed the quarter with $5.4 million in cash, a current ratio of 2.4 to 1, and more than $2.50 per share of equity. As a Company, Natrol closed 2003 committed to delivering meaningful top and bottom line results during 2004. Our focus is on our core Natrol supplement, Prolab sports nutrition and Laci Le Beau tea brands. We will continue focusing on our brands as we seek to improve quarter over quarter and year over year performance."
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, the Company'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, 2003 and in the Companyâs other filings with Securities and Exchange Commission.
Contact:
Dennis Jolicoeur
(818) 739-6000
djolicoeur@natrol.com
| Natrol, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except share and per share data) (Unaudited) | |||
|---|---|---|---|
| March 31, | December 31, | ||
| 2004 | 2003 | ||
| Assets | |||
| Current assets: | |||
| Cash and cash equivalents..................................... | $5,432 | $2,599 | |
| Accounts receivable, net of allowances of $683 and $635 at March 31, 2004 and December 31, 2003, respectively.............................................. | 9,163 | 7,698 | |
| Inventory.............................................. | 10,534 | 9,053 | |
| Income taxes receivable.............................................. | 61 | 349 | |
| Deferred income taxes.............................................. | 1,110 | 1,110 | |
| Prepaid expenses and other current assets.............................................. | 978 | 914 | |
| Net assets of discontinued operations...................................... | 86 | 35 | |
| Total current assets.............................................. | 27,364 | 21,758 | |
| Property and equipment: | |||
| Building and improvements.......................................... | 15,626 | 15,612 | |
| Machinery and equipment............................................ | 5,154 | 5,215 | |
| Furniture and office equipment..................................... | 2,872 | 3,158 | |
| 23,652 | 23,985 | ||
| Accumulated depreciation.............................................. | (7,224) | (7,315) | |
| Property and equipment, net | 16,428 | 16,670 | |
| Restricted cash | 5,000 | 5,000 | |
| Deferred income taxes.............................................. | 3,902 | 3,902 | |
| Goodwill, net of accumulated amortization and impairment charge of $37,381.......................................... | 2,026 | 4,026 | |
| Other assets.............................................. | 119 | 83 | |
| Total assets.............................................. | $54,839 | $51,439 | |
| Liabilities and stockholders' equity | |||
| Current liabilities: | |||
| Accounts payable.............................................. | $8,063 | $5,601 | |
| Accrued expenses.............................................. | 1,794 | 1,732 | |
| Accrued payroll and related liabilities................................................................. | 1,169 | 772 | |
| Current portion of long-term debt...................................................................... | 332 | 325 | |
| Total current liabilities.............................................. | 11,358 | 8,430 | |
| Long-term debt, less current portion..................................................................... | 7,364 | 7,451 | |
| Commitments and contingencies | |||
| Stockholders' equity: | |||
| Preferred stock, par value of $0.01 per share: | |||
| Authorized shares÷2,000,000; Issued and outstanding shares÷none | |||
| Common stock, par value of $0.01 per share: | |||
| Authorized shares÷50,000,000 | |||
Issued and outstanding shares÷14,127,536 | 141 | 141 | |
| Additional paid-in capital........................................ | 62,486 | 62,377 | |
| Accumulated deficit.............................................. | (23,629) | (24,079) | |
| 38,998 | 38,439 | ||
| Shares held in treasury, at cost÷921,900 shares at March 31, 2004 and December 31, 2003.............................................. | (2,881) | (2,881) | |
| Total stockholders' equity.......................................... | 36,117 | 35,558 | |
| Total liabilities and stockholders' equity................................................................ | $54,839 | $51,439 | |
| Natrol, Inc. and Subsidiaries Consolidated Statements of Operations (In thousands, except share and per share data) | |||
|---|---|---|---|
| Three Months Ended March 31, | |||
| 2004 | 2003 | ||
| (Unaudited) | |||
| Net sales................................................... | $20,425 | $18,995 | |
| Cost of goods sold.......................................... | 12,595 | 10,866 | |
| Gross profit................................................... | 7,830 | 8,129 | |
| Selling and marketing expenses................................................... | 4,619 | 4,969 | |
| General and administrative expenses................................................... | 2,325 | 2,639 | |
| Total operating expenses................................................... | 6,944 | 7,608 | |
| Operating income from continuing operations................................................... | 886 | 521 | |
| Interest income........................................... | 22 | 10 | |
| Interest expense.......................................... | (158) | (162) | |
| Income from continuing operations before income taxes.................................... | 750 | 369 | |
| Income tax provision .................................. | 300 | 141 | |
| Income from continuing operations | 450 | 228 | |
| Discontinued operations: | |||
| (Loss) from operations | - | (573) | |
| Income tax benefit | - | 221 | |
| Loss on discontinued operations | - | (352) | |
| Net Income (loss)....................................... | $450 | $(124) | |
| Basic and Diluted income (loss) per share: | |||
| Income (loss) per share from continuing operations................................................... | $0.03 | $0.02 | |
| Loss per share from discontinued operations................................................... | $- | $(0.03) | |
| Income (loss) per share................................ | $0.03 | $(0.01) | |
| Weighted-average shares outstanding:............................................ | |||
| Basic | 13,162,459 | 12,870,598 | |
| Diluted | 14,175,061 | 12,879,181 | |