Natrol (NASDAQ:NTOL)
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Natrol, Inc. (Nasdaq:NTOL), a premier manufacturer and marketer of
nationally branded nutritional products, today announced that it has
closed on a sale/leaseback transaction with an affiliate of TA
Associates Realty for its corporate headquarters and shipping
facilities, both located in Chatsworth, California. The sale price of
the real estate was $26 million. After paying off the associated
mortgage debt, taxes and expenses that relate to the transaction, the
Company received approximately $12 million in free cash at closing.
“During the last year, we have been a
disciplined company, building profits quarter by quarter,”
said Wayne Bos, Natrol’s President and CEO,
when making the announcement. “We unlocked a
hidden asset, our real estate. Twelve million dollars equates to
approximately 30 percent of our current market capitalization. We
believe that releasing the cash will help us drive capitalization up by
utilizing what was a dormant resource to stimulate growth. We believe
this will benefit our shareholders. We understand the importance of
leveraging the cash generated to make the type of strategic investments
to drive top line growth and meaningful profits.”
The Company will continue to occupy the two facilities, leasing back the
space at market rates for a 5-year term, with two 5-year renewal
options. Approximately half of the gain on the sale will be recorded in
the second quarter of 2007. The remainder will be amortized over 5 years
and will offset rental expenses per US GAAP rules.
About Natrol – Nourishing the Potential
of Mind and BodySM
Natrol, Inc. (Nasdaq:NTOL), headquartered in Chatsworth, California, has
a portfolio of health and wellness brands representing quality
nutritional supplements, functional herbal teas, and sports nutrition
products. Established in 1980, Natrol’s
portfolio of brands includes: Natrol®, Prolab®,
Laci Le Beau®, Nu Hair®,
Shen Min®, Promensil®
and Trinovin®. The Company also manufactures
supplements for its own brands and on behalf of third parties.
Natrol distributes products nationally through more than 54,000
retailers, as well as internationally in over 40 other countries through
distribution partners and a wholly owned subsidiary in the UK. Natrol’s
dedication to quality is evidenced by its commitment to high
manufacturing standards, earning the company an “A”
rating from the Natural Products Association’s
Good Manufacturing Practices (“GMP”)
Certification Program — a designation
achieved by less than ten percent of U.S. nutrition companies. For more
information, visit www.Natrol.com.
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 and Section 21E of the Securities Exchange Act of 1934. As a result
of a number of factors, our actual results could differ materially from
those set forth in the forward-looking statements. Certain factors that
might cause our actual results to differ materially from those in the
forward-looking statements include, without limitation: (i) our ability
to develop and execute our business plans, (ii) our ability to respond
to competitive challenges and changing consumer preferences, (iii) our
ability to consummate and integrate acquisitions, (iv) greater than
expected product returns, (v) increased competition, (vi) unfavorable
publicity about dietary supplements in general or regarding our products
or similar products sold by others, (vii) our exposure to product
liability claims, (viii) natural disasters involving our manufacturing
and warehouse facilities, (ix) our ability to continue to obtain raw
materials for our Ester-C® line of products,
(x) our dependence upon certain large customers, and (xi) our ability to
retain and attract talented management and other key employees, as well
as those factors set forth under the heading “Risk
Factors” in our annual report on Form 10-K
for the year ended December 31, 2006, and in our other filings with the
Securities and Exchange Commission.
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