OMAHA, Neb.--(BUSINESS WIRE)--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 preliminary revenue for its fiscal first quarter ended March 31, 2015.
The Company estimates that revenue for the first quarter 2015 will be approximately $3.8 million, as compared to $6.3 million during the first quarter of 2014. As previously discussed, year-over-year revenue comparisons were impacted by the transition during 2014 to the GNC centralized distribution platform. This transition resulted in accelerated inventory purchases from many franchisees during the first half of 2014 and lower average selling prices in the first quarter of 2015, as compared to the same period last year. In addition to the foregoing, the Company also experienced an unexpected short-term supply disruption at the end of the first quarter, which shifted a significant amount of revenue that the Company had expected to recognize during March into the second quarter. The short-term supply disruption contributed to an aggregate backlog, or accepted purchase orders pending shipment, of $1.3 million as of the beginning of the second quarter, which is substantially larger relative to other periods. Despite disappointing first quarter sales figures, the Company expects to report positive net income for the first quarter and maintains a strong cash position. Moreover, the Company believes that it is on target to achieve improved sequential revenue and net income during the second quarter of 2015 compared to the first quarter of 2015.
Sales of the Company’s products at retail, which is a critical business metric as it reflects consumer demand, remain strong. Despite numerous broad industry challenges encountered during the period, total units of the Company’s products sold at retail for the first quarter ended March 31, 2015 were up slightly compared the same period last year with retail unit volume for the Company’s sports nutrition segment increasing almost 10%. Sports Nutrition consistently accounts for more than two-thirds of the Company’s annual revenue and remains a key focus of management.
“In many respects, 2014 was a year of transition for FitLife. We are mindful that our year-over-year quarterly comparisons are complicated by the previously discussed changes at GNC. We are confident that our strategy of providing innovative and differentiated premium products will continue to drive strong brand loyalty and retail demand, a fact that is supported by our continued strong sell-through volumes at retail,” said John Wilson, CEO of FitLife Brands. “We remain the leading third party vendor measured by retail sales dollars within the GNC franchise system, and are enthusiastic about the opportunity to build on that success with the launch of our first brand for GNC corporate stores, Metis Nutrition, in the second quarter,” concluded Mr. Wilson.
The Company is providing certain preliminary estimates of the results of operations that it expects to report for the fiscal first quarter ended March 31, 2015. The financial results provided in this release are prior to the completion of the review by FitLife’s external auditor and therefore are subject to change.
FitLife Brands will issue a press release with full financial results for the first quarter fiscal 2015, on or before Thursday, May 14, 2015. Following the issuance of this release, the Company will provide recorded comments 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 60 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.
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.