Natrol Back in Black,CEO Still Goes Without Pay

Natrol Back in Black,CEO Still Goes Without Pay

CHATSWORTH, Calif.--After three consecutive quarters of net losses, Natrol Inc.(NASDAQ:NTOL) posted positive earnings despite a decrease in revenues for its first quarter ended March 31. Net sales fell 12.8 percent to $19.8 million from $22.7 million sold in the same period in 2000, showing the effects of a continued industry slowdown. Gross margin sank 3.5 points, but operating expenses were trimmed to 37.6 percent of sales from 41.2 percent of sales spent in the comparable 2000 quarter. On the strength of cost cutting, net income reached $.66 million or $.05 per basic share, slightly lower than $.74 million or $.06 per basic share earned in the same quarter last year but a significant improvement over the previous three quarters.

"The reduction of expenses in the first quarter of this year was significant in assisting the company rebound from the losses the company experienced in the second, third and fourth quarters of 2000," said Elliott Balbert, president and chief executive officer. "While one profitable quarter does not establish a firm trend in returning the company to profit levels that are more in line with historical five- and 10-year performance levels, the quarter's results are one positive step in the right direction."

Balbert will still continue to work without pay, after promising last year to go without pay until the company returned to profitability. "He is waiting for at least two quarters of positive earnings," explained Dennis Jolicoeur, chief financial officer. "It is a personal decision by Elliott." Jolicoeur noted that the move by Balbert has been good for employee morale, as has the company's early 2001 decision to give every salaried employee 1,000 stock options at $1.50 per share. "The idea is that a good performance and consistent profit by Natrol will drive the share price up and give each Natrol employee a nice bonus," he said.