Natrol operations improve on prior year
operating income of $1.8 million for the year ended December 31,
2002 with sales down slightly on the previous year.
California-based dietary supplement maker Natrol this week reported operating income of $1.8 million for the year ended December 31, 2002 with sales down slightly on the previous year.
Results were impacted by a change in accounting standards, with the company writing off $11.0 million of its goodwill from prior acquisitions, which, net of tax, resulted in a $6.8 million charge to earnings. Net income was $693,000 before the cumulative effect of the accounting change brought about a net loss of $6.1 million for the year ended December 31, 2002, said Natrol.
The net loss for 2002 amounted to $20.3 million against operating earnings of $1.0 million in 2001 (without the impairment charge due to the purchase of Prolab Nutrition). Sales also dropped to $70.3 million for the whole year, versus $71.8 million for the prior year, but picked up considerably in the fourth quarter - net revenue was $17.0 million, a 29 per cent increase over the last quarter of 2001.
This helped net income for the 2002 fourth quarter, which came to $913,000 versus a loss of $23.0 million in 2001.
Elliot Balbert, Natrol's chairman and CEO, said: "For the year, we are pleased to announce positive operating earnings. Moreover, our operating earnings come after Natrol invested and expensed $1.1 million to prepare for its full 2003 launch of Annasa."
Announced early last year, the company will be hoping that the new multi-level marketing company can drive revenues for 2003.
Balbert added that the strength of the final quarter of 2002 was a positive note and despite current difficulties in the industry, "we believe we have the resources to meet the challenges ahead and improve revenue and earnings as we move forward."
