FitLife Brands Reports Second Quarter 2014 Financial Results

Company Reports 18.4 and 54.2 Percent Increase in Revenue and Net Income

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 second quarter ended June 30, 2014.

Highlights for the second quarter of 2014 include:

  • Revenue increased 18.4% to $6.0 million
  • Operating income increased 340 basis points to 13.6% versus the prior year quarter
  • Net income of $725,215 versus $470,211, an increase of 54.2% during the same period last year
  • Diluted earnings per share of $0.08 versus $0.05 in the previous year quarter

Revenue for the three months ended June 30, 2014 was $6.0 million as compared to $5.1 million for the comparable period in 2013, an increase of 18.4%. For the three month period ended June 30, 2014, the Company reported net income of $725,215 versus net income of $470,211 in the comparable period in 2013.

For the first half of 2014, revenue was $12.3 million as compared to $11.1 million for the first half of 2013, an increase of 10.8%. For the six month period ended June 30, 2014, the Company reported net income of $1.6 million versus $1.1 million in the comparable period in 2013, an increase of 53.0%.

The Company ended the quarter with $3.9 million in cash on the balance sheet, versus $3.3 million at the end of 2013, and generated $811,692 of cash flow from operations during the first half of 2014.

“We believe our second quarter results reflect the underlying strength of our business and execution of our strategic plans,” stated John S. Wilson, Chief Executive Officer of FitLife Brands. “We remain very excited about our opportunities for the remainder of this year and beyond. We are on track to launch our new product line in GNC corporate stores during the fourth quarter of this year or first quarter of 2015, which represents a compelling growth opportunity for us with a domestic footprint of more than 3,000 stores. We continue to expand our domestic and international distribution networks, and are now in more than 1,200 franchised locations. In addition, we will continue to be innovative, offering new product formulations and flavors, as well as new packaging options focused on meeting the needs of our diverse and loyal customer base.”

Following the issuance of this release, the company will provide recorded comments by John S. Wilson and Michael S. Abrams, FitLife Brands’ Chief Executive Officer and Chief Financial Officer, respectively which can be accessed on the FitLife Brands website under the “Investor Relations” section.

About FitLife Brands
FitLife Brands is a marketer and 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. 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: June 30, December 31,
2014 2013
 
CURRENT ASSETS
Cash $ 3,924,474 $ 3,305,179
Accounts receivable, net 2,502,414 1,259,887
Inventory 3,175,205 2,752,636
Deferred tax asset 689,000 689,000
Prepaid expenses and other current assets   84,574     127,448  
Total current assets 10,375,667 8,134,150
 
PROPERTY AND EQUIPMENT, net 2,965 5,988
 
Intangible assets, net 1,147,243 1,037,117
Long-term investments - 50,000
Deposits   3,048     3,048  
TOTAL ASSETS $ 11,528,924   $ 9,230,303  
 
LIABILITIES AND STOCKHOLDERS' EQUITY:
 
CURRENT LIABILITIES:
Accounts payable $ 1,975,854 $ 1,204,894
Accrued expenses and other liabilities 181,383 280,402
Income tax payable 87,000 48,000
Line of Credit 437,089 437,089
Current portion of term loan agreement 498,000 489,129
Redemption of preferred stock payable   15,459     15,459  
Total current liabilities 3,194,786 2,474,974
 
LONG-TERM DEBT 1,695,465 1,946,733
   
TOTAL LIABILITIES 4,890,251 4,421,707
 
CONTINGENCIES AND COMMITMENTS - -
 
STOCKHOLDERS' EQUITY:

Common stock, $.01 par value, 150,000,000 shares authorized; 8,190,368 and 8,110,853 issued and outstanding as of June 30, 2014 and December 31, 2013, respectively

81,904 81,109
Subscribed common stock 44 66
Additional paid-in capital 26,260,462 26,049,722
Accumulated deficit   (19,703,738 )   (21,322,299 )

Total stockholders' equity

$ 6,638,673   $ 4,808,598  
 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 11,528,924   $ 9,230,303  
 
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 SIX MONTHS ENDED JUNE 30, 2014 AND 2013
  (Unaudited)   (Unaudited)
Three Months Ended Six Months Ended
June 30 June 30
2014   2013 2014   2013
 
Revenue $ 5,986,686 $ 5,055,035 $ 12,319,763   $ 11,116,176
Total 5,986,686 5,055,035 12,319,763 11,116,176
 
Cost of Goods Sold   3,738,337   3,189,188   7,714,736     6,980,421
Gross Profit 2,248,350 1,865,847 4,605,027 4,135,755
 
OPERATING EXPENSES:
General and administrative 786,799 668,234 1,592,026 1,665,977
Selling and marketing 588,512 624,762 1,156,878 1,234,851
Depreciation and amortization   56,448   57,971   112,897     116,762
Total operating expenses   1,431,759   1,350,967   2,861,801     3,017,590
OPERATING INCOME (LOSS)   816,591   514,880   1,743,226     1,118,165
 
OTHER (INCOME) AND EXPENSES
Interest expense 24,375 3,669 49,393 8,040
Other income - - (87,500 ) -
Loss on the sale of assets   -   -   -     -
Total other (income) expense 24,375 3,669 (38,107 ) 8,040
 
INCOME TAXES (BENEFIT) 67,000 41,000 162,771 52,500
       
NET INCOME (LOSS) $ 725,215 $ 470,211 $ 1,618,561   $ 1,057,625
 
NET INCOME (LOSS) PER SHARE:
Basic $ 0.09 $ 0.06 $ 0.20   $ 0.14
 
Diluted $ 0.08 $ 0.05 $ 0.19   $ 0.12
 
Basic   8,190,368   7,775,348   8,164,193     7,713,682
 
Diluted   8,613,227   9,054,740   8,570,527     9,032,907
 
The accompanying notes are an integral part of these condensed consolidated financial statements
FITLIFE BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2014 AND 2013
   
(Unaudited)
2014 2013
 
Net income $ 1,618,561 $ 1,057,625

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

Depreciation and amortization 112,897 116,762
Common stock and options issued for services 129,014 349,670
Gain on write-up of investment (137,500 ) -
Changes in operating assets and liabilities:
Accounts receivables (1,242,527 ) (833,908 )
Inventory (422,569 ) 706,447
Prepaid expenses 42,874 1,752
Deposits - -
Accounts payable 770,960 107,968
Accrued liabilities (99,019 ) 11,018
Income tax payable   39,000     10,000  
Net cash provided by / (used in) operating activities   811,692     1,527,334  
 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property and equipment - -
Long-term investment 50,000 (100,000 )
Proceeds from sale of assets   -     -  
Net cash provided by / (used in) investing activities   50,000     (100,000 )
 
CASH FLOWS FROM FINANCING ACTIVITIES:
Repayments of note payable   (242,397 )   -  
Net cash provided by / (used in) financing activities   (242,397 )   -  
 
INCREASE (DECREASE) IN CASH 619,295 1,427,334
CASH, BEGINNING OF PERIOD   3,305,179     936,911  
CASH, END OF PERIOD $ 3,924,474   $ 2,364,244  
 
Supplemental disclosure operating activities
 
Cash paid for interest $ 49,393   $ 8,040  
 
The accompanying notes are an integral part of these condensed consolidated financial statements

Contacts

Three Part Advisors, LLC for FitLife Brands, Inc.
David Mossberg, 817-310-0051
or
Dan Griffith, 817-310-8776

Contacts

Three Part Advisors, LLC for FitLife Brands, Inc.
David Mossberg, 817-310-0051
or
Dan Griffith, 817-310-8776