Prolab deal pushes Natrol into the red

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Related tags: Generally accepted accounting principles

A charge of $20 million (€22.8m) related to the write-down of
goodwill following the acquisition of Prolab Nutrition pushed
nutritional supplement manufacturer Natrol further into the red in
the fourth quarter of 2001.

A charge of $20 million (€22.8m) related to the write-down of goodwill following the acquisition of Prolab Nutrition pushed nutritional supplement manufacturer Natrol further into the red in the fourth quarter of 2001.

The company posted losses of $23 million compared to losses of $3 million in the same three-month period of 2000. Sales for the quarter were $14.9 million compared to $18.0 million in the comparable quarter the previous year.

For the year as a whole, net sales were down to $76.2 million from $87.1 million a year earlier, while losses deepened to $20.3 million from $5.2 million. The loss in 2001 includes the $20 million impairment charge.

"Operating income, once the $20 million write-down of goodwill is eliminated, was positive in 2001. This marks a significant improvement over 2000 when we experienced an operating loss of $6.4 million,"​ said Elliott Balbert, Natrol's president and chairman.

"Our industry is still weak and that weakness is reflected in our revenue numbers. Even so, financially, the company made progress in 2001. We reduced debt by more than $8 million and generated $4.7 million of EBITDA. Until we see better industry numbers, we are cautionary about the future but will continue to manage the business in what we believe is a fiscally prudent manner."

Related topics: Suppliers

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