Full Press Release Details
FitLife Brands Announces First Quarter 2019 Results
NE May 15, 2019 -- FitLife Brands, Inc.
( FitLife or the Company ) (OTC Pink:
FTLF), an international provider of innovative and proprietary
nutritional supplements for health-conscious consumers marketed
under the brand names NDS Nutrition , PMD ,
SirenLabs , CoreActive , Metis Nutrition ,
iSatori , Energize, and BioGenetic Laboratories, today
announced results for the three months ended March 31,
Highlights for the quarter ended March 31, 2019
increased 27.4% to $5.9 million.
online sales increased to 10% of total revenue, compared to 1% in
the same quarter last year, with Energize and select iSatori
products achieving the strongest unit movement.
improved 32.7% to $2.5 million.
increased to 43.2% compared to 41.5% in the same quarter last
declined 21.0% to $1.3 million.
to $1.2 million compared to $0.2 million in the same quarter last
$1.07 per share, or $0.94 per diluted share, compared to $0.20 per
share in the same quarter last year
For the first quarter ended March 31, 2019, total revenue was $5.9
million versus $4.6 million in the same quarter last year, an
increase of 27.4%. The increase was primarily attributable to
increased wholesale purchases from our retail partners coupled with
a significant increase in online direct-to-consumer sales. During
the first quarter of 2019, online sales accounted for approximately
10% of the Company's revenue, compared to 1% during the first
Gross profit improved to $2.5 million, an increase of 32.7% from
the first quarter of 2018. Gross margin improved from 41.5% to
43.2% over the same time period. The improvement in gross margin
was driven by higher total sales volume, reduced returns, and the
increase in online revenue, which delivers a substantially higher
gross margin for the Company.
Total operating expenses declined 21% to $1.3 million, driven by
ongoing cost reduction initiatives and budgetary
Net income for the first quarter of 2019 was $1.2 million, which
represents the largest quarterly profit the company has ever
achieved. The Company delivered basic earnings per share of
$1.07 or $0.94 per diluted share in the quarter,
compared to $0.20 per share in the same quarter last
As previously announced, subsequent to the end of the first quarter
of 2019, the Company implemented a 1-for-8,000 reverse stock split,
which was followed immediately thereafter by an 800-for-1 forward
stock split (the Reverse/Forward Split ). As a result
of the Reverse/Forward Split, holders of fewer than 8,000 pre-split
shares of the Company's common stock received cash in lieu of
fractional shares at a value of $0.57 per pre-split share. The
Reverse/Forward Split resulted in the repurchase of fractional
shares equivalent to 992,659 pre-split shares, or approximately
8.9% of our shares of common stock outstanding prior to the
Reverse/Forward Split. Following the Reverse/Forward Split, there
are 1,014,740 shares of the Company's common stock
Dayton Judd, the Company's Chairman and CEO, commented
I am pleased with the Company's performance during the
first quarter of 2019. Our team has improved the performance of
almost all of our brands, and our efforts to diversify into online
revenue sources are off to a good start. The combination of
stronger top-line performance, expanding margins due to online
sales, and lower operating costs resulted in a record quarter for
Mr. Judd continued, Our online strategy varies by brand. For
our GNC-exclusive brands, our focus is on eliminating unauthorized
online resellers in order to protect our GNC franchise partners.
For our other brands, we are pricing our products competitively to
drive revenue and unit growth. Given this strategy, our top-selling
products online include Energize as well as some of our iSatori
products. Going forward, we intend to continue executing our
strategy. With our improved performance and stronger balance sheet,
we also intend to invest more money into marketing in an effort to
continue to drive profitable top-line growth for all of our
About FitLife Brands
Brands is a developer and marketer of innovative and proprietary
nutritional supplements for health-conscious consumers. FitLife
markets over 80 different dietary supplements to promote sports
nutrition, improved performance, weight loss and general health
primarily through domestic and international GNC franchise
locations as well as through more than 25,000 additional domestic
retail locations and, increasingly, online. FitLife is
headquartered in Omaha, Nebraska. For more information please visit
our new website at www.fitlifebrands.com.
Forward-Looking 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 STATEMENTS OF OPERATIONS | ||
| FOR THE THREE MONTHS ENDED MARCH 31, 2019 AND 2018 |
| Three Months Ended | ||
| March 31 | ||
| (Unaudited) | ||
| 2019 | 2018 | |
| Revenue | $ 5,878,000 | $ 4,614,000 |
| Cost of Goods Sold | 3,337,000 | 2,699,000 |
| Gross Profit | 2,541,000 | 1,915,000 |
| OPERATING EXPENSES: | ||
| General and administrative | 774,000 | 870,000 |
| Selling and marketing | 550,000 | 806,000 |
| Depreciation and amortization | 15,000 | 19,000 |
| Total operating expenses | 1,339,000 | 1,695,000 |
| OPERATING INCOME | 1,202,000 | 220,000 |
| OTHER INCOME (EXPENSES) | ||
| Interest expense | 15,000 | 3,000 |
| Other | - | (1,000 ) |
| Total other expense | 15,000 | 2,000 |
| NET INCOME | $ 1,187,000 | $ 218,000 |
| NET INCOME PER SHARE | ||
| Basic | $ 1.07 | $ 0.20 |
| Diluted | $ 0.94 | $ 0.20 |
| Basic weighted average common shares | 1,111,943 | 1,072,671 |
| Diluted weighted average common shares | 1,268,526 | 1,072,671 |
The accompanying notes are an integral part of these condensed
consolidated financial statements
| FITLIFE BRANDS, INC. |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| ASSETS: | March 31, | December 31, |
| 2019 | 2018 | |
| (Unaudited) | ||
| CURRENT ASSETS | ||
| Cash | $ 438,000 | $ 259,000 |
| Accounts receivable, net of allowance of doubtful accounts, product returns, | ||
| sales returns and incentive programs of $315,000 and $455,000, respectively | 3,817,000 | 1,433,000 |
| Inventories, net of allowance for obsolescence of $119,000 and $107,000, respectively | 2,338,000 | 3,523,000 |
| Prepaid expenses and other current assets | 113,000 | 223,000 |
| Total current assets | 6,706,000 | 5,438,000 |
| Property and equipment, net | 174,000 | 189,000 |
| Right of use asset | 320,000 | - |
| Goodwill | 225,000 | 225,000 |
| Security deposits | 10,000 | 10,000 |
| TOTAL ASSETS | $ 7,435,000 | $ 5,862,000 |
| LIABILITIES AND STOCKHOLDERS' EQUITY: | ||
| CURRENT LIABILITIES: | ||
| Accounts payable | $ 2,307,000 | $ 2,628,000 |
| Accrued expenses and other liabilities | 440,000 | 420,000 |
| Lease liability - current portion | 83,000 | - |
| Notes payable - Related Parties | 815,000 | 500,000 |
| Total current liabilities | 3,645,000 | 3,548,000 |
| LONG-TERM LEASE LIABILITY, net of current portion | 240,000 | - |
| TOTAL LIABILITIES | 3,885,000 | 3,548,000 |
| STOCKHOLDERS' EQUITY: | ||
| Preferred Stock, $0.01 par value, 10,000,000 shares authorized, none outstanding | ||
| as of March 31, 2019 and December 31, 2018: | ||
| Preferred Stock Series A Preferred, $0.01 par value 1,000 shares authorized; 600 | ||
| and 0 shares issued and outstanding as of March 31, 2019 and December 31, 2018, respectively | - | - |
| Common stock, $0.01 par value, 15,000,000 shares authorized; | ||
| 1,113,952 and 1,111,943 issued and outstanding | ||
| as of March 31, 2019 and December 31, 2018, respectively | 111,000 | 111,000 |
| Additional paid-in capital | 32,056,000 | 32,007,000 |
| Accumulated deficit | (28,617,000 ) | (29,804,000 ) |
| Total stockholders' equity | 3,550,000 | $ 2,314,000 |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 7,435,000 | $ 5,862,000 |