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Filed Pursuant to Rule 424(b)(3)
Registration No. 333-52109
PROSPECTUS SUPPLEMENT DATED AUGUST 11, 1998
TO PROSPECTUS DATED JULY 22, 1998
[LOGO]
Natrol, Inc. (the "Company" or "Natrol") calls your attention to the
following press release which was released by the Company on August 10, 1998:
NATROL POSTS RECORD QUARTER
DOUBLING SALES VERSUS 1997
CHATSWORTH, Calif.--(BUSINESS WIRE)--Aug. 10, 1998--Natrol Inc. (NASDAQ:
NTOL-- news) a manufacturer and distributor of nationally branded
dietary supplements, today announced sales and earnings results for the
three and six months ending June 30, 1998.
Net sales for the quarter ending June 30, 1998 reached record levels
increasing 98.9%, or $8.1 million, to $16.3 million for the three months
ended June 30, 1998 from $8.2 million for the three months ended June,
1997.
The Company noted that of the $8.1 million increase, $2.6 million, or
32.1%, was attributable to net sales of Pure-Gar, acquired in February
1998, with the remainder due to increases in net sales of the Company's
other dietary supplement products. A combination of new product
introductions, increases of existing product sales and increased
penetration in the Company's traditional channels of distribution
contributed to the Company's net sales growth.
Net sales increased 62.5%, or $11.3 million, to $29.4 million for the
six months ended June 30, 1998 from $18.1 million for the six months
ended June 30, 1997. Of the $11.3 million increase, $3.8 million, or
33.6%, was attributable to net sales of Pure-Gar.
Net income after taxes for the quarter ending June 30 grew 470% in the
quarter from $277,000 or $0.03 per fully diluted share to $1.6 million
or $0.15 per fully diluted share. For the six months period ending June
30, 1998 profits reached 2.8 million from $1.1 million in 1997,
producing fully diluted earnings per share of $0.26 versus $0.11 in
1997.
Natrol manufactures and markets branded, high-quality dietary
supplements. The Company sells its products under the Natrol brand name
through multiple distribution channels throughout the United States,
including domestic health food stores and mass market drug, retail and
grocery store chains. In July, the Company completed an initial public
offering and its stock is traded on the NASDAQ.
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CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS)
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<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30, JUNE 30,
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<S> <C> <C> <C> <C>
1997 1998 1997 1998
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<CAPTION>
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net sales....................................... $ 8,191 $ 16,290 $ 18,100 $ 29,407
Cost of goods sold.............................. 3,815 7,933 8,290 14,254
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Gross Profit.................................. 4,376 8,357 9,810 15,153
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Selling and marketing expenses.................. 2,825 4,254 5,815 7,731
General and administrative expenses............. 1,046 1,272 2,101 2,503
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Total operating expenses...................... 3,871 5,526 7,916 10,234
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Operating income................................ 505 2,831 1,894 4,919
Interest income................................. -- 22 -- 43
Interest expense................................ (41) (222) (76) (375)
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Income before income tax provision.............. 464 2,631 1,818 4,587
Income tax provision............................ 187 1,052 731 1,834
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Net income...................................... $ 277 $ 1,579 $ 1,087 $ 2,753
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Basic earnings per share........................ $ 0.04 $ 0.22 $ 0.15 $ 0.39
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Diluted earnings per share...................... $ 0.03 $ 0.15 $ 0.11 $ 0.26
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Weighted average shares outstanding-- basic..... 7,100,000 7,100,000 7,100,000 7,100,000
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Weighted average shares outstanding-- diluted... 10,261,538 10,619,120 10,261,538 10,562,163
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