FTLF FitLife Brands Reports Third Quarter Earnings
Post# of 94279
Posted On: 11/15/2013 7:51:52 AM
FTLF FitLife Brands Reports Third Quarter Earnings
Growth Trend Continues
FitLife Brands, Inc. (“FitLife”) (OTCBB: FTLF), an international provider of innovative and proprietary nutritional supplements for health conscious consumers marketed under the brand names NDS Nutrition Products™ (“NDS”) (www.ndsnutrition.com), PMD® (www.pmdsports.com), SirenLabs® (www.sirenlabs.com) and CoreActive® (www.coreactivenutrition.com) today announced financial results for the third fiscal quarter and nine months ended September 30, 2013.
Highlights for the third quarter and nine months included:
3Q13 revenue increased 6.6% to $4.9 million
3Q13 revenue increased 18.0%, excluding prior year’s non-recurring revenue
International revenue for the nine month period increased to $1.0 million, representing 6.0% of total revenue
Net cash balance as of September 30, 2013 increased to $3.4 million versus $0.9 million at the same time last year
Revenue for the three months ended September 30, 2013 was $4.9 million as compared to $4.6 million for the comparable period in 2012, an increase of 6.6%. Revenue for the nine months ended September 30, 2013 was $16.0 million as compared to $14.7 million for the comparable period in 2012, an increase of 8.7%. Revenue for the three and nine month periods ended September 30, 2012 included $0.4 million and $2.1 million of revenue, respectively, related to the previously disclosed formula change that management believes is non-recurring in nature. Excluding such non-recurring sources, revenue for the three and nine month periods ended September 30, 2013 increased 18.0% and 26.6%, respectively, as compared to the comparable periods in 2012.
The Company continues to make ongoing investment to enhance sales and marketing, which management believes will drive future domestic and international growth. Revenue from international sources represented 6.0% of total revenue for the nine month period ended September 30, 2013, as compared to just 1.6% for the comparable period in 2012.
Net income for the three and nine month periods ended September 30, 2013 was $0.5 million and $1.5 million, respectively, as compared to $0.5 million and $2.0 million, respectively, for the comparable periods in 2012. In addition to approximately $0.3 million of incremental non-cash issuance costs incurred year-to-date during 2013 and the impact of the non-recurring revenue, net income comparisons for the three and nine months periods ended September 30, 2013 reflect ongoing investment by the Company to enhance its sales and marketing efforts.
During the nine month period ended September 30, 2013, FitLife generated $2.6 million of cash flow from operations as compared to just $0.8 million for the comparable nine month period ended September 30, 2012. The Company ended the quarter with a net cash balance (after disbursements to be made in connection with the completed recapitalization) of more than $3.4 million, versus a $0.9 million cash balance as of the September 30, 2012.
“2013 is proving to be a year of important milestones for FitLife,” stated John S. Wilson, Chief Executive Officer of FitLife. “We saw another quarter of continued strong financial performance, a significant increase in our cash position, and continued top-line growth. The investment in international expansion, while still early, is beginning to show momentum. We have many exciting opportunities still ahead of us, as we continue to expand distribution both domestically and internationally. The successful launch of SirenLabs® earlier this year was a strong validation of our brand-centric growth strategy and I look forward to continuing to execute our strategic growth plan to drive diversity and scale.”
About FitLife Brands
FitLife Brands is a manufacturer of innovative and proprietary nutritional supplements for health conscious consumers. FitLife markets over 50 different dietary supplements to promote sports nutrition, improved performance, weight loss and general health primarily through domestic and international GNC® franchise locations. Concurrent with the September 2013 recapitalization, the company changed its name from Bond Labs, Inc. to FitLife Brands, Inc. FitLife is headquartered in Omaha, Nebraska. For more information please visit our new website at www.fitlifebrands.com
Forward-Looking Statement
Statements in this release that are forward looking involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to be materially different from any future performance that may be suggested in this news release. Such factors may include, but are not limited to: the ability to of the Company to continue to grow revenue; and the Company’s ability to continue to achieve positive cash flow given the Company's existing and anticipated operating and other costs. Many of these risks and uncertainties are beyond the Company's control. Reference is made to the discussion of risk factors detailed in The Company’s filings with the Securities and Exchange Commission including its reports on Form 10-K and 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
FITLIFE BRANDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS: September 30, December 31,
2013 2012
CURRENT ASSETS
Cash $ 6,026,135 $ 936,911
Accounts receivable, net 1,526,489 969,111
Inventory 2,494,298 3,684,991
Deferred tax asset 689,000 689,000
Prepaid expenses and other current assets 69,756 117,059
Total current assets 10,805,678 6,397,072
PROPERTY AND EQUIPMENT, net 8,839 18,577
Intangibles assets, net 1,092,055 1,256,866
Long-term investments 50,000 -
Deposits 3,048 3,048
TOTAL ASSETS $ 11,959,620 $ 7,675,563
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Accounts payable $ 1,129,386 $ 1,209,380
Accrued expenses and other liabilities 172,846 191,787
Income tax payable 53,000 32,000
Line of credit 437,089 437,089
Redemption of preferred stock payable 2,597,792 -
Total current liabilities 4,390,113 1,870,256
LONG-TERM DEBT 2,555,384 -
TOTAL LIABILITIES 6,945,497 1,870,256
CONTINGENCIES AND COMMITMENTS - -
STOCKHOLDERS' EQUITY:
Preferred stock series B, $.01 par value, 1,000 shares authorized; 0 and 103.3 issued and outstanding of its 10% Perpetual Preferred with a Stated Value of $10,000 per share with a cumulative dividend of $0 and $757,063 as of September 30, 2013 and December 31, 2012, respectively
- 757,064
Preferred stock series C, $.01 par value, 500 shares authorized; 0 and 125 issued and outstanding of its convertible preferred stock with a Stated Value of $10,000 per share with a $0.25 conversion price and a cumulative dividend of $0 and $50,755 as of September 30, 2013 and December 31, 2012, respectively
- 50,756
Common stock, $.01 par value, 150,000,000 shares authorized; 7,775,322 and 74,753,482 issued and outstanding as of September 30, 2013 and December 31, 2012, respectively
77,753 747,535
Subscribed common stock 3,306
Additional paid-in capital 26,004,573 26,864,676
Accumulated deficit (21,071,509 ) (22,614,724 )
Total stockholders' equity $ 5,014,123 $ 5,805,307
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 11,959,620 $ 7,675,563
The accompanying notes are an integral part of these condensed consolidated financial statements
FITLIFE BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
(Unaudited) (Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
2013 2012 2013 2012
Revenue $ 4,892,256 $ 4,591,182 $ 16,008,432 $ 14,722,334
Total 4,892,256 4,591,182 16,008,432 14,722,334
Cost of Goods Sold 3,142,718 2,956,672 10,123,140 9,365,222
Gross Profit 1,749,538 1,634,510 5,885,292 5,357,112
OPERATING EXPENSES:
General and administrative 615,005 451,270 2,280,983 1,570,407
Selling and marketing 594,013 653,151 1,828,864 1,635,677
Depreciation and amortization 57,788 60,640 174,549 183,911
Total operating expenses 1,266,806 1,165,061 4,284,396 3,389,995
OPERATING INCOME (LOSS) 482,732 469,449 1,600,896 1,967,117
OTHER (INCOME) AND EXPENSES
Interest expense 6,419 4,624 14,459 13,936
Other income (36,278 ) (8,084 ) (36,278 ) (12,584 )
Loss on the sale of assets - - - -
Total other (income) expense (29,859 ) (3,460 ) (21,819 ) 1,352
INCOME TAXES (BENEFIT) 27,000 5,500 79,500 5,500
NET INCOME (LOSS) $ 485,591 $ 467,409 $ 1,543,215 $ 1,960,265
NET INCOME (LOSS) PER SHARE:
Basic $ 0.06 $ 0.01 $ 0.20 $ 0.03
Diluted $ 0.05 $ 0.00 $ 0.17 $ 0.02
Basic 7,786,366 74,538,448 7,737,910 74,423,788
Diluted 9,065,758 94,982,968 9,043,857 95,117,313
The accompanying notes are an integral part of these condensed consolidated financial statements
FITLIFE BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
(Unaudited)
2013 2012
Net income $ 1,543,215 $ 1,960,265
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 174,549 183,911
Common stock and options issued for services 349,670 60,054
Gain on redemption of preferred stock and warrants (86,278 ) -
Changes in operating assets and liabilities:
Accounts receivables (557,378 ) (352,273 )
Inventory 1,190,693 (594,234 )
Prepaid expenses 47,303 (155,144 )
Deposits - 3,782
Accounts payable (79,994 ) (28,398 )
Accrued liabilities (18,941 ) (35,524 )
Litigation reserve
- (210,000 )
Income tax payable 21,000 -
Net cash provided by / (used in) operating activities 2,583,841 832,440
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment - -
Long-term investment (50,000 ) -
Proceeds from sale of assets - -
Net cash provided by / (used in) investing activities (50,000 ) -
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt 2,600,000 -
Principal repayments on long-term debt (44,616 ) -
Net cash provided by / (used in) financing activities 2,555,384 -
INCREASE (DECREASE) IN CASH 5,089,225 832,440
CASH, BEGINNING OF PERIOD 936,911 354,929
CASH, END OF PERIOD $ 6,026,135 $ 1,187,369
Supplemental disclosure for operating activities
Cash paid for interest $ 14,459 $ 13,936
The accompanying notes are an integral part of these condensed consolidated financial statements
Three Part Advisors, LLC for FitLife Brands, Inc.
David Mossberg, 817-310-0051
Growth Trend Continues
FitLife Brands, Inc. (“FitLife”) (OTCBB: FTLF), an international provider of innovative and proprietary nutritional supplements for health conscious consumers marketed under the brand names NDS Nutrition Products™ (“NDS”) (www.ndsnutrition.com), PMD® (www.pmdsports.com), SirenLabs® (www.sirenlabs.com) and CoreActive® (www.coreactivenutrition.com) today announced financial results for the third fiscal quarter and nine months ended September 30, 2013.
Highlights for the third quarter and nine months included:
3Q13 revenue increased 6.6% to $4.9 million
3Q13 revenue increased 18.0%, excluding prior year’s non-recurring revenue
International revenue for the nine month period increased to $1.0 million, representing 6.0% of total revenue
Net cash balance as of September 30, 2013 increased to $3.4 million versus $0.9 million at the same time last year
Revenue for the three months ended September 30, 2013 was $4.9 million as compared to $4.6 million for the comparable period in 2012, an increase of 6.6%. Revenue for the nine months ended September 30, 2013 was $16.0 million as compared to $14.7 million for the comparable period in 2012, an increase of 8.7%. Revenue for the three and nine month periods ended September 30, 2012 included $0.4 million and $2.1 million of revenue, respectively, related to the previously disclosed formula change that management believes is non-recurring in nature. Excluding such non-recurring sources, revenue for the three and nine month periods ended September 30, 2013 increased 18.0% and 26.6%, respectively, as compared to the comparable periods in 2012.
The Company continues to make ongoing investment to enhance sales and marketing, which management believes will drive future domestic and international growth. Revenue from international sources represented 6.0% of total revenue for the nine month period ended September 30, 2013, as compared to just 1.6% for the comparable period in 2012.
Net income for the three and nine month periods ended September 30, 2013 was $0.5 million and $1.5 million, respectively, as compared to $0.5 million and $2.0 million, respectively, for the comparable periods in 2012. In addition to approximately $0.3 million of incremental non-cash issuance costs incurred year-to-date during 2013 and the impact of the non-recurring revenue, net income comparisons for the three and nine months periods ended September 30, 2013 reflect ongoing investment by the Company to enhance its sales and marketing efforts.
During the nine month period ended September 30, 2013, FitLife generated $2.6 million of cash flow from operations as compared to just $0.8 million for the comparable nine month period ended September 30, 2012. The Company ended the quarter with a net cash balance (after disbursements to be made in connection with the completed recapitalization) of more than $3.4 million, versus a $0.9 million cash balance as of the September 30, 2012.
“2013 is proving to be a year of important milestones for FitLife,” stated John S. Wilson, Chief Executive Officer of FitLife. “We saw another quarter of continued strong financial performance, a significant increase in our cash position, and continued top-line growth. The investment in international expansion, while still early, is beginning to show momentum. We have many exciting opportunities still ahead of us, as we continue to expand distribution both domestically and internationally. The successful launch of SirenLabs® earlier this year was a strong validation of our brand-centric growth strategy and I look forward to continuing to execute our strategic growth plan to drive diversity and scale.”
About FitLife Brands
FitLife Brands is a manufacturer of innovative and proprietary nutritional supplements for health conscious consumers. FitLife markets over 50 different dietary supplements to promote sports nutrition, improved performance, weight loss and general health primarily through domestic and international GNC® franchise locations. Concurrent with the September 2013 recapitalization, the company changed its name from Bond Labs, Inc. to FitLife Brands, Inc. FitLife is headquartered in Omaha, Nebraska. For more information please visit our new website at www.fitlifebrands.com
Forward-Looking Statement
Statements in this release that are forward looking involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to be materially different from any future performance that may be suggested in this news release. Such factors may include, but are not limited to: the ability to of the Company to continue to grow revenue; and the Company’s ability to continue to achieve positive cash flow given the Company's existing and anticipated operating and other costs. Many of these risks and uncertainties are beyond the Company's control. Reference is made to the discussion of risk factors detailed in The Company’s filings with the Securities and Exchange Commission including its reports on Form 10-K and 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.
FITLIFE BRANDS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
ASSETS: September 30, December 31,
2013 2012
CURRENT ASSETS
Cash $ 6,026,135 $ 936,911
Accounts receivable, net 1,526,489 969,111
Inventory 2,494,298 3,684,991
Deferred tax asset 689,000 689,000
Prepaid expenses and other current assets 69,756 117,059
Total current assets 10,805,678 6,397,072
PROPERTY AND EQUIPMENT, net 8,839 18,577
Intangibles assets, net 1,092,055 1,256,866
Long-term investments 50,000 -
Deposits 3,048 3,048
TOTAL ASSETS $ 11,959,620 $ 7,675,563
LIABILITIES AND STOCKHOLDERS' EQUITY:
CURRENT LIABILITIES:
Accounts payable $ 1,129,386 $ 1,209,380
Accrued expenses and other liabilities 172,846 191,787
Income tax payable 53,000 32,000
Line of credit 437,089 437,089
Redemption of preferred stock payable 2,597,792 -
Total current liabilities 4,390,113 1,870,256
LONG-TERM DEBT 2,555,384 -
TOTAL LIABILITIES 6,945,497 1,870,256
CONTINGENCIES AND COMMITMENTS - -
STOCKHOLDERS' EQUITY:
Preferred stock series B, $.01 par value, 1,000 shares authorized; 0 and 103.3 issued and outstanding of its 10% Perpetual Preferred with a Stated Value of $10,000 per share with a cumulative dividend of $0 and $757,063 as of September 30, 2013 and December 31, 2012, respectively
- 757,064
Preferred stock series C, $.01 par value, 500 shares authorized; 0 and 125 issued and outstanding of its convertible preferred stock with a Stated Value of $10,000 per share with a $0.25 conversion price and a cumulative dividend of $0 and $50,755 as of September 30, 2013 and December 31, 2012, respectively
- 50,756
Common stock, $.01 par value, 150,000,000 shares authorized; 7,775,322 and 74,753,482 issued and outstanding as of September 30, 2013 and December 31, 2012, respectively
77,753 747,535
Subscribed common stock 3,306
Additional paid-in capital 26,004,573 26,864,676
Accumulated deficit (21,071,509 ) (22,614,724 )
Total stockholders' equity $ 5,014,123 $ 5,805,307
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 11,959,620 $ 7,675,563
The accompanying notes are an integral part of these condensed consolidated financial statements
FITLIFE BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE AND NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
(Unaudited) (Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
2013 2012 2013 2012
Revenue $ 4,892,256 $ 4,591,182 $ 16,008,432 $ 14,722,334
Total 4,892,256 4,591,182 16,008,432 14,722,334
Cost of Goods Sold 3,142,718 2,956,672 10,123,140 9,365,222
Gross Profit 1,749,538 1,634,510 5,885,292 5,357,112
OPERATING EXPENSES:
General and administrative 615,005 451,270 2,280,983 1,570,407
Selling and marketing 594,013 653,151 1,828,864 1,635,677
Depreciation and amortization 57,788 60,640 174,549 183,911
Total operating expenses 1,266,806 1,165,061 4,284,396 3,389,995
OPERATING INCOME (LOSS) 482,732 469,449 1,600,896 1,967,117
OTHER (INCOME) AND EXPENSES
Interest expense 6,419 4,624 14,459 13,936
Other income (36,278 ) (8,084 ) (36,278 ) (12,584 )
Loss on the sale of assets - - - -
Total other (income) expense (29,859 ) (3,460 ) (21,819 ) 1,352
INCOME TAXES (BENEFIT) 27,000 5,500 79,500 5,500
NET INCOME (LOSS) $ 485,591 $ 467,409 $ 1,543,215 $ 1,960,265
NET INCOME (LOSS) PER SHARE:
Basic $ 0.06 $ 0.01 $ 0.20 $ 0.03
Diluted $ 0.05 $ 0.00 $ 0.17 $ 0.02
Basic 7,786,366 74,538,448 7,737,910 74,423,788
Diluted 9,065,758 94,982,968 9,043,857 95,117,313
The accompanying notes are an integral part of these condensed consolidated financial statements
FITLIFE BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2013 AND 2012
(Unaudited)
2013 2012
Net income $ 1,543,215 $ 1,960,265
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and amortization 174,549 183,911
Common stock and options issued for services 349,670 60,054
Gain on redemption of preferred stock and warrants (86,278 ) -
Changes in operating assets and liabilities:
Accounts receivables (557,378 ) (352,273 )
Inventory 1,190,693 (594,234 )
Prepaid expenses 47,303 (155,144 )
Deposits - 3,782
Accounts payable (79,994 ) (28,398 )
Accrued liabilities (18,941 ) (35,524 )
Litigation reserve
- (210,000 )
Income tax payable 21,000 -
Net cash provided by / (used in) operating activities 2,583,841 832,440
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment - -
Long-term investment (50,000 ) -
Proceeds from sale of assets - -
Net cash provided by / (used in) investing activities (50,000 ) -
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of long-term debt 2,600,000 -
Principal repayments on long-term debt (44,616 ) -
Net cash provided by / (used in) financing activities 2,555,384 -
INCREASE (DECREASE) IN CASH 5,089,225 832,440
CASH, BEGINNING OF PERIOD 936,911 354,929
CASH, END OF PERIOD $ 6,026,135 $ 1,187,369
Supplemental disclosure for operating activities
Cash paid for interest $ 14,459 $ 13,936
The accompanying notes are an integral part of these condensed consolidated financial statements
Three Part Advisors, LLC for FitLife Brands, Inc.
David Mossberg, 817-310-0051
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