Full Press Release Details
FitLife Brands Announces First Quarter 2020 Results
NE May 15, 2020 -- 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, 2020
increased 4.6% to $6.2 million.
online sales increased to 14% of total revenue, compared to 10% in
the same quarter last year.
improved 7.7% to $2.7 million.
increased to 44.5% compared to 43.2% in the same quarter last
increased 20.3% to $1.4 million.
share increased to $1.36 per share, or $1.27 per diluted share,
compared to $1.07 per share, or $0.94 per diluted share, in the
same quarter last year.
For the first quarter ended March 31, 2020, total revenue was $6.2
million versus $5.9 million in the same quarter last year, an
increase of 4.6%. The increase was primarily attributable to
continued growth in our online direct-to-consumer business. During
the first quarter of 2020, online sales accounted for approximately
14% of the Company's revenue, compared to 10% during the
first quarter of 2019.
Gross profit improved to $2.7 million, an increase of 7.7% from the
first quarter of 2019. Gross margin improved from 43.2% to 44.5%
over the same time period. The improvement in gross margin was
driven by product mix and higher online sales volumes.
Total operating expenses increased 5.8% from $1.3 million to $1.4
million, driven by an increased investment in sales and
Net income for the first quarter of 2020 was $1.4 million, an
increase of 20.3% over the same quarter in 2019. The Company
delivered basic earnings per share of $1.36 in the first quarter of
2020, compared to $1.07 in the same quarter last year. Diluted
earnings per share increased from $0.94 in the first quarter of
last year to $1.27 this year.
Dayton Judd, the Company's Chairman and CEO, commented
I am very pleased with the Company's performance
during the first quarter, especially given the disruption that
began in mid-March due to the COVID-19 pandemic. That said, given
the uncertainty brought on by the current environment, I know our
stakeholders are more interested in how the business is performing
during the second quarter. Therefore, to be as transparent as
possible, the Company provides the following information, not
subject to any procedures by our Independent Registered Public
Accounting Firm, regarding its performance and position as of May
accounts receivable outstanding is $1.1 million, of which
approximately 66% is due from GNC.
of our customers continue to pay us timely in the ordinary course
of business. However, several customers owing a combined total of
$0.1 million are currently three or more weeks behind in making
payments, and roughly 30% of that amount has already been fully
reserved and is not included in the total accounts receivable
balance reported above.
Company repaid its line of credit in late April, and the full
balance of the $2.5 million facility is available to draw again in
the future as needed, subject to any borrowing base
cash on hand is $2.9 million.
Company continues to pay all of its vendors timely in the ordinary
far during the second quarter, the Company's
direct-to-consumer online revenue is pacing roughly 100% higher
than online revenue during the same time period last
sales of the Company's products through GNC franchise
locations experienced a year-over-year decline of 50-55% during
late March and early April, but have been improving consistently
each week since then, with recent declines in the 10-20% range
relative to the same time period last year.
Company generated no revenue from GNC during April, as the
warehouses and the franchisees worked through existing
in the first half of May, the Company received orders from and has
begun shipping products to GNC. Nevertheless, the Company
anticipates that its revenue from GNC will be materially lower
during the second quarter of 2020 compared to the same quarter last
to cost-cutting efforts, the Company anticipates that operating
expense for the second quarter of 2020 will be at least 7-10% lower
than the first quarter of 2020.
Mr. Judd continued, While much uncertainty remains, I am
pleased with how our team is navigating this pandemic. The Company
will provide additional updates as warranted.
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