Omaha, Aug. 16, 2021 (GLOBE NEWSWIRE) -- FitLife Brands Announces Second Quarter 2021 Results
OMAHA, NE – August 16, 2021 -- FitLife Brands, Inc. (“FitLife” or the “Company”) (OTCQX: FTLF), an international provider of innovative and proprietary nutritional supplements for health-conscious consumers marketed under the brand names NDS Nutrition, PMD, SirenLabs, Nutrology, CoreActive, Metis Nutrition, iSatori, Energize, and BioGenetic Laboratories, today announced results for the three and six months ended June 30, 2021.
Highlights for the second quarter ended June 30, 2021 include:
- Total revenue increased 197% to $8.1 million.
- Direct-to-consumer online sales increased 52% and accounted for 21% of total revenue.
- Gross profit increased 170% to $3.6 million.
- The Company generated net income of $1.5 million compared to a net loss of ($0.1) million during the same quarter last year.
- Adjusted EBITDA increased to $2.0 million compared to an adjusted EBITDA loss of ($0.1) million during the second quarter of 2020.
- Adjusted EBITDA for the trailing twelve months increased to $6.8 million.
- The Company ended the quarter with no debt and $8.4 million of cash.
For the second quarter ended June 30, 2021, total revenue was $8.1 million compared to $2.7 million in the same quarter last year, an increase of 197%. The increase was attributable to the closure of some of our retail partners’ store locations and the stay-at-home orders during the second quarter of 2020 caused by the COVID-19 pandemic, continued organic growth in our online and wholesale businesses, and the acquisition of Nutrology. During the quarter, online sales increased 52% and accounted for approximately 21% of the Company’s revenue.
Gross profit increased 170% to $3.6 million, driven primarily by higher revenue. Gross margin declined to 43.7% due primarily to a reduction in higher-margin online sales as a percent of total revenue during the quarter.
Net income for the second quarter of 2021 was $1.5 million compared to a net loss ($0.1) million during the same quarter in 2020. Basic earnings per share was $1.37 and diluted earnings per share was $1.26, compared to a loss of ($0.09) per basic and diluted share during the same quarter last year.
Subsequent to releasing a substantial portion of the reserve against its deferred tax assets at the end of 2020, the Company now reports a provision for income taxes, which is largely non-cash. In an effort to provide a more cash-based earnings metric, and to allow better comparability to prior periods, the Company has begun reporting adjusted EBITDA, a non-GAAP measure that is not subject to procedures by our Independent Registered Public Accounting Firm. Please see the non-GAAP financial measures table below for a reconciliation of net income to adjusted EBITDA. For the quarter ended June 30, 2021, adjusted EBITDA was $2.0 million compared to an adjusted EBITDA loss of ($0.1) million in the same period last year. As of June 30, 2021, adjusted EBITDA for the trailing twelve months was $6.8 million.
Dayton Judd, the Company’s Chairman and CEO, commented, “The second quarter of 2021 was one of the strongest quarters in the Company’s history. We continue to experience robust organic growth in both our wholesale and our online businesses. We have successfully integrated Nutrology into our operations, and we continue to look for opportunities to deploy our strong and growing cash balance into additional accretive acquisitions.”
About FitLife Brands
FitLife Brands is a developer and marketer of innovative and proprietary nutritional supplements for health-conscious consumers. FitLife markets over 130 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 17,000 additional domestic retail locations and, increasingly, online. FitLife is headquartered in Omaha, Nebraska. For more information please visit our website at www.fitlifebrands.com.
Forward-Looking Statements
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.
Non-GAAP Financial Measures
The financial presentation below contains certain financial measures defined as “non-GAAP financial measures” by the SEC, including non-GAAP EBITDA and adjusted non-GAAP EBITDA. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in this Annual Report in accordance with GAAP.
As presented below, non-GAAP EBITDA excludes interest, income taxes, and depreciation and amortization. Adjusted non-GAAP EBITDA excludes, in addition to interest, taxes, depreciation and amortization, equity-based compensation and non-recurring gains or losses. The Company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expense and other items that may not be indicative of its core operating results and business outlook. The Company believes that the inclusion of non-GAAP measures in the financial presentation below allows investors to compare the Company’s financial results with the Company’s historical financial results and is an important measure of the Company’s comparative financial performance.
| FITLIFE BRANDS, INC. | |||||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
| ASSETS: | June 30, | December 31, | |||||||
| 2021 | 2020 | ||||||||
| (Unaudited) | |||||||||
| CURRENT ASSETS | |||||||||
| Cash | $ | 8,425,000 | $ | 6,336,000 | |||||
| Accounts receivable, net of allowance of doubtful accounts of $59,000 and $51,000, respectively | 1,757,000 | 2,044,000 | |||||||
| Inventories, net of allowance for obsolescence of $28,000 and $56,000, respectively | 4,834,000 | 3,401,000 | |||||||
| Income tax receivable | 40,000 | 40,000 | |||||||
| Prepaid expenses and other current assets | 228,000 | 52,000 | |||||||
| Total current assets | 15,284,000 | 11,873,000 | |||||||
| Property and equipment, net | 85,000 | 98,000 | |||||||
| Right of use asset, net of amortization of $296,000 and $272,000, respectively | 183,000 | 208,000 | |||||||
| Intangibles, net of amortization of $10,000 and $0, respectively | 212,000 | - | |||||||
| Goodwill | 358,000 | 225,000 | |||||||
| Deferred tax asset | 3,639,000 | 4,370,000 | |||||||
| TOTAL ASSETS | $ | 19,761,000 | $ | 16,774,000 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||||||
| CURRENT LIABILITIES: | |||||||||
| Accounts payable | $ | 3,542,000 | $ | 3,246,000 | |||||
| Accrued expense and other liabilities | 635,000 | 498,000 | |||||||
| Product returns | 326,000 | 335,000 | |||||||
| Lease liability - current portion | 53,000 | 50,000 | |||||||
| Total current liabilities | 4,556,000 | 4,129,000 | |||||||
| Long-term lease liability, net of current portion | 131,000 | 158,000 | |||||||
| PPP loan | - | 453,000 | |||||||
| TOTAL LIABILITIES | 4,687,000 | 4,740,000 | |||||||
| STOCKHOLDERS' EQUITY: | |||||||||
| Preferred stock, $0.01 par value, 10,000,000 shares authorized, none outstanding | |||||||||
| as of June 30, 2021 and December 31, 2020 | - | - | |||||||
| Common stock, $0.01 par value, 15,000,000 shares authorized; 1,105,690 and 1,060,818 | |||||||||
| issued and outstanding as of June 30, 2021 and December 31, 2020, respectively | 12,000 | 12,000 | |||||||
| Treasury stock, 219,654 and 210,631 shares, respectively | (2,050,000 | ) | (1,790,000 | ) | |||||
| Additional paid-in capital | 32,312,000 | 32,204,000 | |||||||
| Accumulated deficit | (15,200,000 | ) | (18,392,000 | ) | |||||
| TOTAL STOCKHOLDERS' EQUITY | 15,074,000 | 12,034,000 | |||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 19,761,000 | $ | 16,774,000 | |||||
| The accompanying notes are an integral part of these condensed consolidated financial statements | |||||||||
| FITLIFE BRANDS, INC. | |||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||||
| FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020 | |||||||||||||||||
| (Unaudited) | |||||||||||||||||
| Three months ended | Six months Ended | ||||||||||||||||
| June 30 | June 30 | ||||||||||||||||
| 2021 | 2020 | 2021 | 2020 | ||||||||||||||
| Revenue | $ | 8,141,000 | $ | 2,740,000 | $ | 14,299,000 | $ | 8,891,000 | |||||||||
| Cost of goods sold | 4,580,000 | 1,421,000 | 7,661,000 | 4,835,000 | |||||||||||||
| Gross profit | 3,561,000 | 1,319,000 | 6,638,000 | 4,056,000 | |||||||||||||
| OPERATING EXPENSES: | |||||||||||||||||
| General and administrative | 917,000 | 1,001,000 | 1,774,000 | 1,734,000 | |||||||||||||
| Selling and marketing | 716,000 | 435,000 | 1,385,000 | 1,106,000 | |||||||||||||
| Depreciation and amortization | 15,000 | 10,000 | 23,000 | 23,000 | |||||||||||||
| Total operating expenses | 1,648,000 | 1,446,000 | 3,182,000 | 2,863,000 | |||||||||||||
| OPERATING INCOME (LOSS) | 1,913,000 | (127,000 | ) | 3,456,000 | 1,193,000 | ||||||||||||
| OTHER EXPENSES (INCOME) | |||||||||||||||||
| Interest expense (income) | (5,000 | ) | 5,000 | (11,000 | ) | 8,000 | |||||||||||
| Gain on settlement | - | - | - | (70,000 | ) | ||||||||||||
| Gain on debt forgiveness | - | - | (453,000 | ) | - | ||||||||||||
| Total other expenses (income) | (5,000 | ) | 5,000 | (464,000 | ) | (62,000 | ) | ||||||||||
| PRE-TAX NET INCOME (LOSS) | 1,918,000 | (132,000 | ) | 3,920,000 | 1,255,000 | ||||||||||||
| PROVISION (BENEFIT) FOR INCOME TAXES | 410,000 | (40,000 | ) | 728,000 | (81,000 | ) | |||||||||||
| NET INCOME (LOSS) | $ | 1,508,000 | $ | (92,000 | ) | $ | 3,192,000 | $ | 1,336,000 | ||||||||
| NET INCOME (LOSS) PER SHARE | |||||||||||||||||
| Basic | $ | 1.37 | $ | (0.09 | ) | $ | 2.94 | $ | 1.27 | ||||||||
| Diluted | $ | 1.26 | $ | (0.09 | ) | $ | 2.68 | $ | 1.19 | ||||||||
| Basic weighted average common shares | 1,098,000 | 1,060,033 | 1,087,385 | 1,055,893 | |||||||||||||
| Diluted weighted average common shares | 1,194,880 | 1,060,033 | 1,189,069 | 1,126,631 | |||||||||||||
| The accompanying notes are an integral part of these condensed consolidated financial statements | |||||||||||||||||
| FITLIFE BRANDS, INC. | |||||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY | |||||||||||||||||||||||||
| FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020 | |||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||
| Additional | |||||||||||||||||||||||||
| Common Stock | Treasury | Paid-in | Accumulated | ||||||||||||||||||||||
| Shares | Amount | Stock | Capital | Deficit | Total | ||||||||||||||||||||
| THREE MONTHS ENDED JUNE 30, 2021 | |||||||||||||||||||||||||
| MARCH 31, 2021 | 1,090,818 | $ | 12,000 | $ | (1,790,000 | ) | $ | 32,335,000 | $ | (16,708,000 | ) | $ | 13,849,000 | ||||||||||||
| Repurchase of common stock | (9,023 | ) | - | (260,000 | ) | - | - | (260,000 | ) | ||||||||||||||||
| Exercise of stock options | 3,895 | - | - | 54,000 | - | 54,000 | |||||||||||||||||||
| Repurchase of options | - | - | - | (184,000 | ) | - | (184,000 | ) | |||||||||||||||||
| Stock-based compensation | 20,000 | - | - | 107,000 | - | 107,000 | |||||||||||||||||||
| Net income | - | - | - | - | 1,508,000 | 1,508,000 | |||||||||||||||||||
| JUNE 30, 2021 | 1,105,690 | $ | 12,000 | $ | (2,050,000 | ) | $ | 32,312,000 | $ | (15,200,000 | ) | $ | 15,074,000 | ||||||||||||
| THREE MONTHS ENDED JUNE 30, 2020 | |||||||||||||||||||||||||
| MARCH 31, 2020 | 1,060,033 | $ | 12,000 | $ | (1,790,000 | ) | $ | 32,154,000 | $ | (25,678,000 | ) | $ | 4,698,000 | ||||||||||||
| Fair value of common stock issued for services | - | - | - | 10,000 | - | 10,000 | |||||||||||||||||||
| Repurchase of common stock | - | - | - | - | - | - | |||||||||||||||||||
| Exercise of stock options | - | - | - | - | - | - | |||||||||||||||||||
| Stock-based compensation | - | - | - | 12,000 | - | 12,000 | |||||||||||||||||||
| Net income | - | - | - | - | (92,000 | ) | (92,000 | ) | |||||||||||||||||
| JUNE 30, 2020 | 1,060,033 | $ | 12,000 | $ | (1,790,000 | ) | $ | 32,176,000 | $ | (25,770,000 | ) | $ | 4,628,000 | ||||||||||||
| SIX MONTHS ENDED JUNE 30, 2021 | |||||||||||||||||||||||||
| DECEMBER 31, 2020 | 1,060,818 | $ | 12,000 | $ | (1,790,000 | ) | $ | 32,204,000 | $ | (18,392,000 | ) | $ | 12,034,000 | ||||||||||||
| Repurchase of common stock | (9,023 | ) | - | (260,000 | ) | - | - | (260,000 | ) | ||||||||||||||||
| Exercise of stock options | 3,895 | - | - | 54,000 | - | 54,000 | |||||||||||||||||||
| Repurchase of options | - | - | - | (184,000 | ) | - | (184,000 | ) | |||||||||||||||||
| Stock-based compensation | 50,000 | - | - | 238,000 | - | 238,000 | |||||||||||||||||||
| Net income | - | - | - | - | 3,192,000 | 3,192,000 | |||||||||||||||||||
| JUNE 30, 2021 | 1,105,690 | $ | 12,000 | $ | (2,050,000 | ) | $ | 32,312,000 | $ | (15,200,000 | ) | $ | 15,074,000 | ||||||||||||
| SIX MONTHS ENDED JUNE 30, 2020 | |||||||||||||||||||||||||
| DECEMBER 31, 2019 | 1,054,516 | $ | 12,000 | $ | (1,619,000 | ) | $ | 32,055,000 | $ | (27,106,000 | ) | $ | 3,342,000 | ||||||||||||
| Fair value of common stock issued for services | 417 | - | - | 26,000 | - | 26,000 | |||||||||||||||||||
| Repurchase of common stock | (11,900 | ) | - | (171,000 | ) | - | - | (171,000 | ) | ||||||||||||||||
| Exercise of stock options | 17,000 | - | - | 71,000 | - | 71,000 | |||||||||||||||||||
| Stock-based compensation | - | - | - | 24,000 | - | 24,000 | |||||||||||||||||||
| Net income | - | - | - | - | 1,336,000 | 1,336,000 | |||||||||||||||||||
| JUNE 30, 2020 | 1,060,033 | $ | 12,000 | $ | (1,790,000 | ) | $ | 32,176,000 | $ | (25,770,000 | ) | $ | 4,628,000 | ||||||||||||
| The accompanying notes are an integral part of these condensed consolidated financial statements | |||||||||||||||||||||||||
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Net income | $ | 1,508,000 | $ | (92,000 | ) | $ | 3,192,000 | $ | 1,336,000 | |||||||
| Interest expense (income) | (5,000 | ) | 5,000 | (11,000 | ) | 8,000 | ||||||||||
| Provision (benefit) for income taxes | 410,000 | (40,000 | ) | 728,000 | (81,000 | ) | ||||||||||
| Depreciation and amortization | 15,000 | 10,000 | 23,000 | 23,000 | ||||||||||||
| EBITDA | 1,928,000 | (117,000 | ) | 3,932,000 | 1,286,000 | |||||||||||
| Non-cash and non-recurring adjustments | ||||||||||||||||
| Stock compensation expense | 107,000 | 26,000 | 238,000 | 54,000 | ||||||||||||
| Non-recurring losses (gains) | - | - | (453,000 | ) | (70,000 | ) | ||||||||||
| Adjusted EBITDA | $ | 2,035,000 | $ | (91,000 | ) | $ | 3,717,000 | $ | 1,270,000 | |||||||
