FitLife Brands Reports 2013 Results

Fourth Quarter and Full-year Revenue Growth of 9%

OMAHA, Neb.--()--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 fiscal year ended December 31, 2013.

Highlights for the fourth quarter and full year 2013 included:

  • 4Q13 revenue increased 9% to $3.7 million from $3.4 million in 4Q12
  • FY13 revenue increased 9% to $19.7 million from $18.1 million in FY12
  • FY13 net income was $1.3 million as compared to $1.9 million for FY12, net of the tax benefit
  • FY13 and FY12 net income excluding the tax benefit and non-cash expense related to the issuance of equity to certain employees, consultants and directors was $1.7 million and $1.9 million, respectively
  • Sales to international locations for the full year ended December 31, 2013 exceeded $1.0 million for the first time ever, representing approximately 6.0% of total revenue
  • Recapitalized the Company to simplify the capital structure, reduce the diluted share count and lower the cost of capital
  • Cash balance as of December 31, 2013 increased by $2.4 million to $3.3 million from $0.9 million at the same time last year

“2013 was a year of important milestones for FitLife,” stated John S. Wilson, Chief Executive Officer of FitLife Brands. “We grew revenue, expanded internationally, launched SirenLabs®, simplified our capital structure, strengthened our balance sheet, changed the Company’s name to FitLife Brands, increased our cash position by $2.4 million, and positioned the Company for a future uplisting to a national exchange. Domestic and international market expansion and expanded distribution channel opportunities remain key elements of our long-term growth plan. I am proud of the progress we have made and remain very excited about the opportunities ahead of the Company in 2014 and beyond,” concluded Mr. Wilson.

About FitLife Brands

FitLife Brands is a manufacturer and marketer 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 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 maintain 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.
CONSOLIDATED BALANCE SHEETS
         
 
ASSETS: December 31, December 31,
2013 2012
 
CURRENT ASSETS
Cash $ 3,305,179 $ 936,911
Accounts receivable, net 1,259,887 969,111
Inventory 2,752,636 3,684,991
Deferred Taxes 689,000 689,000
Prepaid expenses and other current assets   127,448     117,059  
Total current assets 8,134,150 6,397,072
 
PROPERTY AND EQUIPMENT, net 5,988 18,577
 
Intangibles assets, net 1,037,117 1,256,866
Long-term investments 50,000 -
Deposits   3,048     3,048  
TOTAL ASSETS $ 9,230,303   $ 7,675,563  
 
LIABILITIES AND STOCKHOLDERS' EQUITY:
 
CURRENT LIABILITIES:
Accounts payable $ 1,204,894 $ 1,209,380
Accrued expenses and other liabilities 280,402 191,787
Income tax payable 48,000 32,000
Line of credit 437,089 437,089
Current Portion of Term Loan Agreement 489,129
Redemption of preferred stock payable   15,459     -  
Total current liabilities 2,474,973 1,870,256
 
LONG-TERM DEBT 1,946,733 -
           
TOTAL LIABILITIES 4,421,706 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 December 31, 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 December 31, 2013 and December 31, 2012, respectively

- 50,756

Common stock, $.01 par value, 150,000,000 shares authorized; 8,110,853 and 74,753,482 issued and outstanding as of December 31, 2013 and December 31, 2012, respectively

81,109 747,535
Subscribed common stock 66 -
Additional paid-in capital 26,049,722 26,864,676
Accumulated deficit   (21,322,299 )   (22,614,724 )
Total stockholders' equity $ 4,808,598   $ 5,805,307  
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 9,230,303   $ 7,675,563  
 
The accompanying notes are an integral part of these consolidated financial statements
 
FITLIFE BRANDS, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
       
 
2013 2012
 
Revenue $ 19,684,030   $ 18,093,202  
Total 19,684,030 18,093,202
 
Cost of Goods Sold   12,548,637     11,568,240  
Gross Profit 7,135,393 6,524,962
 
OPERATING EXPENSES:
General and administrative 3,100,320 2,190,343
Selling and marketing 2,415,183 2,209,207
Depreciation and amortization   232,338     244,059  
Total operating expenses   5,747,841     4,643,609  
OPERATING INCOME (LOSS)   1,387,552     1,881,353  
 
OTHER (INCOME) AND EXPENSES
Interest expense 40,906 18,404
Other expense (income)   (36,279 )   (12,584 )
Total other (income) expense 4,627 5,820
 
INCOME TAXES (BENEFIT) 90,500 (648,743 )
           
NET INCOME (LOSS) $ 1,292,425   $ 2,524,276  
 
NET INCOME (LOSS) PER SHARE:
Basic $ 0.17   $ 0.03  
 
Diluted $ 0.14   $ 0.03  
 
Basic   7,830,909     74,465,509  
 
Diluted   8,951,051     93,779,867  
 
The accompanying notes are an integral part of these consolidated financial statements
 
FITLIFE BRANDS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012
       
 
2013 2012
 
Net income $ 1,292,425 $ 2,524,276

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization 232,338 244,059
Common stock issued (cancelled) for services 354,039 52,064
Warrants and options issued (cancelled) for services 40,896 22,643
Gain on redemption of preferred stock and warrants (86,278 ) -
Increase / (Decrease) in Litigation reserve - (250,000 )
Changes in operating assets and liabilities:
Accounts receivable (290,776 ) 73,637
Inventory 932,355 (1,807,709 )
Deferred tax asset - (689,000 )
Prepaid expenses (10,389 ) (95,638 )
Deposits - 3,782
Accounts payable (4,486 ) 442,209
Accrued liabilities 88,615 29,659
Income tax payable   16,000     32,000  
Net cash provided by (used in) operating activities   2,564,740     581,982  
 
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 -
Payments for redemption of preferred stock (2,582,333 ) -
Repayments of note payable   (164,139 )   -  
Net cash provided by (used in) financing activities   (146,472 )   -  
 
INCREASE (DECREASE) IN CASH 2,368,268 581,982
CASH, BEGINNING OF PERIOD   936,911     354,929  
CASH, END OF PERIOD $ 3,305,179   $ 936,911  
 
Supplemental disclosure operating activities
 
Cash paid for interest $ 40,906   $ 18,404  
 
The accompanying notes are an integral part of these consolidated financial statements

Contacts

Three Part Advisors, LLC
David Mossberg, 817-310-0051
Dan Griffith, 817-310-8776

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Contacts

Three Part Advisors, LLC
David Mossberg, 817-310-0051
Dan Griffith, 817-310-8776