CHATSWORTH, Calif.--(BUSINESS WIRE)—August 16, 2004—Natrol, Inc. (NASDAQ: NTOL - news), a manufacturer and distributor of nationally branded dietary supplements, today reported results for the second quarter ended June 30, 2004, announcing net income of $769,000 or $0.05 per diluted share on net sales of $20.7 million. For the six months ended June 30, 2004, the Company recorded net income of $1.2 million or $0.09 per diluted share.
Net sales increased 9.6% or $1.8 million when compared to the second quarter of 2003 when the Company posted $18.9 million in net sales.During the second quarter of 2003, the Company recorded a net loss from continuing operations of $246,000.Losses from discontinued operations in the second quarter of 2003 amounted to $304,000 and the Company recorded a net loss of $550,000 or $0.04 per share.
Net sales for the six months ended June 30, 2004 were $41.1 million, 8.6% more than the $37.9 million in net sales reported during the same period in 2003.The Company posted a net loss from continuing operations for the six months ended June 30, 2003 of $18,000. Losses from discontinued operations for the same period amounted to $656,000 and the Company recorded a net loss of $674,000 or $0.05 per share.
“The engine of growth in 2004 has been the core Natrol brand,” noted Elliott Balbert, Natrol’s President and Chairman when making the earnings announcement.“Our 2004 plan was to focus on our core business and we have.The consolidation of Prolab operations to the West Coast and continued distribution gains of our weight loss products contributed to our improved profitability.Our balance sheet continues to be strong and our equity at the end of the quarter was a respectable $2.78 per share.As we head into the second half of the year, we are optimistic these assets will continue to assist in the current revitalization of the brand.”
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, 2003and in the Company’s other filings with Securities and Exchange Commission.
Natrol Inc., Chatsworth
Dennis Jolicoeur, 818/739-6000