FitLife Brands Announces Fourth Quarter and Full-Year 2024 Results
FitLife Brands (FTLF) reported strong financial results for Q4 and full-year 2024. Q4 revenue reached $15.0 million, up 13% year-over-year, with online sales accounting for 67% at $10.1 million. Net income grew to $2.1 million with EPS of $0.23 basic and $0.21 diluted.
Full-year 2024 highlights include: revenue of $64.5 million (+22% YoY), online sales of $43.0 million (+29% YoY), net income of $9.0 million (+70% YoY), and Adjusted EBITDA of $14.1 million (+39% YoY). Gross margin improved to 43.6% from 40.7% in 2023.
The company ended 2024 with $13.1 million in term loans and $4.5 million in cash, resulting in net debt of $8.6 million. A commercial dispute with GNC was resolved in January 2025. New tariffs on Chinese imports implemented in early 2025 are expected to impact future costs.
FitLife Brands (FTLF) ha riportato risultati finanziari solidi per il Q4 e l'intero anno 2024. Il fatturato del Q4 ha raggiunto i 15,0 milioni di dollari, in aumento del 13% rispetto all'anno precedente, con le vendite online che rappresentano il 67% a 10,1 milioni di dollari. L'utile netto è cresciuto a 2,1 milioni di dollari con un EPS di 0,23 dollari base e 0,21 dollari diluiti.
I punti salienti dell'anno 2024 includono: fatturato di 64,5 milioni di dollari (+22% rispetto all'anno precedente), vendite online di 43,0 milioni di dollari (+29% rispetto all'anno precedente), utile netto di 9,0 milioni di dollari (+70% rispetto all'anno precedente) e EBITDA rettificato di 14,1 milioni di dollari (+39% rispetto all'anno precedente). Il margine lordo è migliorato al 43,6% rispetto al 40,7% del 2023.
L'azienda ha concluso il 2024 con 13,1 milioni di dollari in prestiti a termine e 4,5 milioni di dollari in contante, risultando in un debito netto di 8,6 milioni di dollari. Una controversia commerciale con GNC è stata risolta a gennaio 2025. Si prevede che i nuovi dazi sulle importazioni cinesi, attuati all'inizio del 2025, influenzeranno i costi futuri.
FitLife Brands (FTLF) reportó resultados financieros sólidos para el cuarto trimestre y el año completo 2024. Los ingresos del cuarto trimestre alcanzaron los 15,0 millones de dólares, un aumento del 13% interanual, con las ventas en línea representando el 67% con 10,1 millones de dólares. El ingreso neto creció a 2,1 millones de dólares con un EPS de 0,23 dólares básico y 0,21 dólares diluido.
Los aspectos destacados del año completo 2024 incluyen: ingresos de 64,5 millones de dólares (+22% interanual), ventas en línea de 43,0 millones de dólares (+29% interanual), ingreso neto de 9,0 millones de dólares (+70% interanual) y EBITDA ajustado de 14,1 millones de dólares (+39% interanual). El margen bruto mejoró al 43,6% desde el 40,7% en 2023.
La compañía terminó 2024 con 13,1 millones de dólares en préstamos a plazo y 4,5 millones de dólares en efectivo, resultando en una deuda neta de 8,6 millones de dólares. Una disputa comercial con GNC se resolvió en enero de 2025. Se espera que los nuevos aranceles sobre las importaciones chinas implementados a principios de 2025 impacten los costos futuros.
FitLife Brands (FTLF)는 2024년 4분기 및 연간 강력한 재무 결과를 보고했습니다. 4분기 매출은 1,500만 달러에 달하며, 전년 대비 13% 증가했으며, 온라인 판매가 67%를 차지하여 1,010만 달러를 기록했습니다. 순이익은 210만 달러로 증가했으며, 기본 EPS는 0.23달러, 희석 EPS는 0.21달러입니다.
2024년 전체 하이라이트에는 6,450만 달러의 매출(+22% 전년 대비), 4,300만 달러의 온라인 판매(+29% 전년 대비), 900만 달러의 순이익(+70% 전년 대비), 조정 EBITDA 1,410만 달러(+39% 전년 대비)가 포함됩니다. 총 마진은 2023년 40.7%에서 43.6%로 개선되었습니다.
회사는 2024년을 1,310만 달러의 장기 대출과 450만 달러의 현금으로 마감하여 순부채는 860만 달러로 나타났습니다. GNC와의 상업적 분쟁은 2025년 1월에 해결되었습니다. 2025년 초에 시행된 중국 수입품에 대한 새로운 관세는 향후 비용에 영향을 미칠 것으로 예상됩니다.
FitLife Brands (FTLF) a rapporté de solides résultats financiers pour le quatrième trimestre et l'année entière 2024. Le chiffre d'affaires du quatrième trimestre a atteint 15,0 millions de dollars, soit une augmentation de 13 % par rapport à l'année précédente, les ventes en ligne représentant 67 % avec 10,1 millions de dollars. Le bénéfice net a augmenté à 2,1 millions de dollars avec un BPA de 0,23 dollar de base et 0,21 dollar dilué.
Les points forts de l'année 2024 comprennent : un chiffre d'affaires de 64,5 millions de dollars (+22 % par rapport à l'année précédente), des ventes en ligne de 43,0 millions de dollars (+29 % par rapport à l'année précédente), un bénéfice net de 9,0 millions de dollars (+70 % par rapport à l'année précédente) et un EBITDA ajusté de 14,1 millions de dollars (+39 % par rapport à l'année précédente). La marge brute s'est améliorée à 43,6 % contre 40,7 % en 2023.
L'entreprise a terminé 2024 avec 13,1 millions de dollars en prêts à terme et 4,5 millions de dollars en espèces, ce qui a donné lieu à une dette nette de 8,6 millions de dollars. Un litige commercial avec GNC a été résolu en janvier 2025. De nouveaux tarifs sur les importations chinoises mis en œuvre début 2025 devraient avoir un impact sur les coûts futurs.
FitLife Brands (FTLF) hat starke finanzielle Ergebnisse für das 4. Quartal und das gesamte Jahr 2024 gemeldet. Der Umsatz im 4. Quartal erreichte 15,0 Millionen Dollar, was einem Anstieg von 13 % im Vergleich zum Vorjahr entspricht, wobei der Online-Verkauf 67 % mit 10,1 Millionen Dollar ausmachte. Der Nettogewinn stieg auf 2,1 Millionen Dollar mit einem EPS von 0,23 Dollar basis und 0,21 Dollar verwässert.
Die Höhepunkte des Jahres 2024 umfassen: einen Umsatz von 64,5 Millionen Dollar (+22 % im Vergleich zum Vorjahr), Online-Verkäufe von 43,0 Millionen Dollar (+29 % im Vergleich zum Vorjahr), einen Nettogewinn von 9,0 Millionen Dollar (+70 % im Vergleich zum Vorjahr) und ein bereinigtes EBITDA von 14,1 Millionen Dollar (+39 % im Vergleich zum Vorjahr). Die Bruttomarge verbesserte sich auf 43,6 % gegenüber 40,7 % im Jahr 2023.
Das Unternehmen schloss das Jahr 2024 mit 13,1 Millionen Dollar an Terminkrediten und 4,5 Millionen Dollar in bar ab, was zu einer Nettoverschuldung von 8,6 Millionen Dollar führte. Ein Handelsstreit mit GNC wurde im Januar 2025 gelöst. Neue Zölle auf chinesische Importe, die Anfang 2025 eingeführt wurden, werden voraussichtlich die zukünftigen Kosten beeinflussen.
- Revenue grew 22% to $64.5M in 2024
- Net income increased 70% to $9.0M in 2024
- Online sales grew 29% to $43.0M
- Gross margin improved to 43.6% from 40.7%
- Adjusted EBITDA increased 39% to $14.1M
- Strong debt reduction with net debt at only 0.6x adjusted EBITDA
- Legacy FitLife revenue declined 13% in Q4 2024
- New Chinese tariffs will increase cost of goods sold
- Q1 2025 revenue expected to decline 4-6%
- Commercial dispute with GNC affected Q4 2024 sales
- Wholesale revenue faces challenges from declining brick-and-mortar store traffic
Insights
FitLife Brands delivered impressive financial results for both Q4 and full-year 2024, demonstrating strong execution of its multi-brand strategy. The company achieved 22% annual revenue growth to
Online channel performance continues to be the growth engine, representing
The company's debt management deserves attention - they've repaid
The temporary commercial dispute with GNC appears resolved without lasting damage. Looking ahead, management has flagged potential headwinds for Q1 2025, projecting a
Omaha, March 27, 2025 (GLOBE NEWSWIRE) -- FitLife Brands, Inc. (“FitLife” or the “Company”) (Nasdaq: FTLF), a provider of innovative and proprietary nutritional supplements and wellness products, today announced financial results for the fourth quarter and full year ended December 31, 2024.
Highlights for the fourth quarter ended December 31, 2024 include:
- Total revenue was
$15.0 million , an increase of13% compared to the fourth quarter of 2023. - Online sales were
$10.1 million , representing67% of total revenue and an increase of12% compared to the fourth quarter of 2023. - Gross margin was
41.4% compared to40.3% during the fourth quarter of 2023. - Net income was
$2.1 million compared to$1.5 million during the fourth quarter of 2023. - Basic earnings per share and diluted earnings per share were
$0.23 and$0.21 , respectively, compared to$0.16 and$0.15 during the fourth quarter of 2023. - Adjusted EBITDA was
$3.1 million , a31% increase compared to the fourth quarter of 2023.
Highlights for the year ended December 31, 2024 include:
- Total revenue was
$64.5 million , an increase of22% compared to the prior year. - Online sales were
$43.0 million , representing67% of total revenue and an increase of29% compared to 2023. - Gross margin was
43.6% compared to40.7% during 2023. - Net income was
$9.0 million , an increase of70% from the prior year. - Basic earnings per share increased
66% to$0.98 and diluted earnings per share increased69% to$0.91 . - Adjusted EBITDA was
$14.1 million compared to$10.2 million in the prior year, an increase of39% . - The Company ended the year with
$13.1 million outstanding on its term loans and cash of$4.5 million , or total net debt of$8.6 million , equivalent to 0.6x adjusted EBITDA.
For the fourth quarter ended December 31, 2024, total revenue was
Wholesale revenue for the quarter ended December 31, 2024 was
For the year ended December 31, 2024, total revenue was
Gross margin for the quarter ended December 31, 2024 was
Net income for the fourth quarter of 2024 was
Net income for the year ended December 31, 2024 was
Adjusted EBITDA for the quarter ended December 31, 2024 was
As of December 31, 2024, the Company had
Performance of Brands
One of the primary metrics used by management to evaluate the performance of the Company’s brands is contribution, a non-GAAP financial measure which management defines as gross profit less advertising and marketing expenditures. Other companies may also report contribution as a performance metric, but their definition or calculation of contribution may differ from the Company’s. Management believes that contribution, as defined by the Company, is a particularly relevant performance metric since it incorporates the gross profit associated with a specific brand or collection of brands as well as the advertising and marketing expenditures associated with the same brand or brands. With limited exceptions, other operating expenses incurred by the Company are generally not allocable to a specific brand or collection of brands.
Other than for MusclePharm, the numbers in the contribution tables presented below in the body of the press release represent the performance of a collection of brands. Legacy FitLife consists of nine brands and MRC consists of three brands. These collections of brands do not meet the definition of operating segments and are not managed as such.
| Legacy FitLife | |||||||||||
| (Unaudited) | |||||||||||
| 2023 | 2024 | ||||||||||
| Q4 | Q1 | Q2 | Q3 | Q4 | |||||||
| Wholesale revenue | 4,011 | 4,506 | 4,224 | 3,859 | 3,210 | ||||||
| Online revenue | 2,134 | 2,455 | 2,578 | 2,443 | 2,112 | ||||||
| Total revenue | 6,145 | 6,961 | 6,802 | 6,302 | 5,322 | ||||||
| Gross profit | 2,480 | 2,928 | 3,006 | 2,684 | 2,115 | ||||||
| Gross margin | 40.4 | % | 42.1 | % | 44.2 | % | 42.6 | % | 39.7 | % | |
| Advertising and marketing | 71 | 80 | 94 | 70 | 59 | ||||||
| Contribution | 2,409 | 2,848 | 2,912 | 2,614 | 2,056 | ||||||
| Contribution as a % of revenue | 39.2 | % | 40.9 | % | 42.8 | % | 41.5 | % | 38.6 | % | |
For the fourth quarter of 2024, Legacy FitLife revenue declined
Gross profit and contribution for Legacy FitLife decreased by
During the fourth quarter, a commercial dispute with GNC, the Company’s largest customer, resulted in the Company rejecting all purchase orders from GNC beginning on December 1, 2024. However, any product that was ordered by GNC prior to December 1, 2024 continued to be shipped and was all received by GNC during the month of December.
Subsequent to the end of the fourth quarter, in early January 2025, the Company began selling and shipping product directly to its GNC franchisee customers. On January 23, 2025, the Company and GNC settled their commercial dispute and the Company immediately began accepting purchase orders from GNC, with shipments to the GNC distribution centers beginning approximately two weeks later. The Company continued shipping directly to GNC franchisees until the GNC distribution centers were restocked.
The Company’s wholesale revenue continues to be challenged by declining customer counts in the brick-and-mortar stores of our wholesale partners. In addition, due to the size and timing of wholesale orders, wholesale revenue recognized by the Company during one quarter may not necessarily be reflective of the retail demand for the Company’s products.
| Mimi's Rock (MRC) | |||||||||||
| (Unaudited) | |||||||||||
| 2023 | 2024 | ||||||||||
| Q4 | Q1 | Q2 | Q3 | Q4 | |||||||
| Wholesale revenue | 91 | 94 | 90 | 71 | 40 | ||||||
| Online revenue | 6,811 | 7,399 | 7,371 | 7,139 | 6,832 | ||||||
| Total revenue | 6,902 | 7,493 | 7,461 | 7,210 | 6,872 | ||||||
| Gross profit | 2,790 | 3,520 | 3,597 | 3,441 | 3,350 | ||||||
| Gross margin | 40.4 | % | 47.0 | % | 48.2 | % | 47.7 | % | 48.7 | % | |
| Advertising and marketing | 846 | 1,062 | 1,071 | 929 | 803 | ||||||
| Contribution | 1,944 | 2,458 | 2,526 | 2,512 | 2,547 | ||||||
| Contribution as % of revenue | 28.2 | % | 32.8 | % | 33.9 | % | 34.8 | % | 37.1 | % | |
For the fourth quarter of 2024, MRC revenue declined less than one percent compared to the same period in 2023. Over the same time period, despite the slight decline in total revenue, gross profit increased
Revenue for the largest MRC brand—Dr. Tobias—increased
As previously disclosed, at the time of the MRC acquisition in 2023, the skin care brands were sold in a number of countries. Analysis subsequent to the acquisition determined that—in almost all countries other than Canada and the US—the products were being sold at levels resulting in negative contribution. Even worse, in many of those countries, the products were being sold at negative gross margins.
To optimize performance of the skin care brands, management exited a number of countries and raised prices in other countries. As a result of these changes, a substantial amount of unprofitable revenue was eliminated.
The substantial year-over-year increase in contribution for the MRC brands is a function of the optimization of the skin care brands, beneficial product mix within the Dr. Tobias brand, as well as the optimization of advertising spend across all MRC brands.
| MusclePharm | |||||||||||
| (Unaudited) | |||||||||||
| 2023 | 2024 | ||||||||||
| Q4 | Q1 | Q2 | Q3 | Q4 | |||||||
| Wholesale revenue | 180 | 1,117 | 1,388 | 1,231 | 1,689 | ||||||
| Online revenue | 73 | 978 | 1,279 | 1,234 | 1,130 | ||||||
| Total revenue | 253 | 2,095 | 2,667 | 2,465 | 2,819 | ||||||
| Gross profit | 93 | 839 | 977 | 876 | 747 | ||||||
| Gross margin | 36.8 | % | 40.0 | % | 36.6 | % | 35.5 | % | 26.5 | % | |
| Advertising and marketing | - | 86 | 161 | 94 | 117 | ||||||
| Contribution | 93 | 753 | 816 | 782 | 630 | ||||||
| Contribution as % of revenue | 36.8 | % | 35.9 | % | 30.6 | % | 31.7 | % | 22.3 | % | |
MusclePharm revenue increased
Total MusclePharm revenue in the fourth quarter of 2024 was the highest quarterly revenue for the brand since it was acquired by the Company in October 2023. The strong growth in wholesale revenue during the quarter was driven by (1) some revenue from orders received in September slipping in October, as previously disclosed, and (2) increased promotional efforts by the Company in an attempt to drive increased sales of the Company’s MusclePharm products.
The Company’s investment in promotion of the MusclePharm products primarily consisted of increased marketing allowances to wholesale customers. Under GAAP, these marketing allowances are accounted for as a price reduction, which results in a reduction in reported net revenue and gross profit, and therefore gross margin. The increased promotional spend during the fourth quarter represents an intentional investment in growth, and the Company intends to continue providing elevated marketing support for the MusclePharm products in future quarters.
The Company also continues to invest in efforts to revitalize the MusclePharm brand. More specifically, the Company has completed a rebranding of the legacy MusclePharm products. The new packaging, which can be seen on MusclePharm’s website, began rolling out late during the fourth quarter and will continue through the first half of 2025.
In addition, the Company continues to launch new MusclePharm products. As previously announced, in mid-March the Company launched the new MusclePharm Pro Series—a collection of 9 SKUs of premium sports nutrition products—in a two-month pilot in high-volume Vitamin Shoppe stores (consisting of approximately
Additionally, the Company has also recently launched two new flavors of the MusclePharm protein bars as well as three flavors of a new ready-to-drink (RTD) protein. The RTDs, which contain 40 grams of protein and no added sugar, are initially being sold through wholesale distributors as well as through the Company’s online sales channels. The Company is also in the process of presenting the RTDs to its existing wholesale customers.
| FitLife Consolidated | |||||||||||
| (Unaudited) | |||||||||||
| 2023 | 2024 | ||||||||||
| Q4 | Q1 | Q2 | Q3 | Q4 | |||||||
| Wholesale revenue | 4,282 | 5,717 | 5,702 | 5,161 | 4,939 | ||||||
| Online revenue | 9,018 | 10,832 | 11,228 | 10,816 | 10,074 | ||||||
| Total revenue | 13,300 | 16,549 | 16,930 | 15,977 | 15,013 | ||||||
| Gross profit | 5,363 | 7,287 | 7,580 | 7,001 | 6,212 | ||||||
| Gross margin | 40.3 | % | 44.0 | % | 44.8 | % | 43.8 | % | 41.4 | % | |
| Advertising and marketing | 917 | 1,228 | 1,326 | 1,093 | 979 | ||||||
| Contribution | 4,446 | 6,059 | 6,254 | 5,908 | 5,233 | ||||||
| Contribution as % of revenue | 33.4 | % | 36.6 | % | 36.9 | % | 37.0 | % | 34.9 | % | |
For the Company overall, revenue for the fourth quarter of 2024 increased
Preliminary Comments on the First Quarter of 2025
For the first quarter of 2025, both MusclePharm and Legacy FitLife are anticipated to achieve strong double-digit year-over-year online revenue growth. However, online revenue for MRC is expected to decline approximately 10
During February 2024, the Company implemented new subscription discounts for Dr. Tobias products on Amazon, which contributed to strong sales growth in the first quarter of 2024 and throughout much of 2024. The Dr. Tobias brand remains relatively stable for the first quarter of 2025 as compared to the fourth quarter of 2024, but it is down year-over-year due to the weaker seasonality trends.
On a consolidated basis, the Company currently anticipates a revenue decline of approximately 4
Despite the anticipated revenue decline, the Company expects adjusted EBITDA for the first quarter of 2025 to be approximately flat compared to the first quarter of 2024. For the full year ended December 31, 2025, the Company expects to deliver organic revenue and EBITDA growth.
Management Commentary
Dayton Judd, the Company’s Chairman and CEO commented, “Overall, I am pleased with the Company’s progress in 2024. During the fourth quarter, the Company’s revenue, gross profit, gross margin, contribution, and contribution as a percent of revenue all increased compared to the same period in 2023.
“Over the last several weeks, there has been significant turmoil in the markets, at least partially driven by recessionary concerns and uncertainty related to tariffs. With regard to tariffs, a number of ingredients used in nutritional supplements come predominantly from China. On February 4, 2025, the Trump administration implemented a
“I am proud of what the FitLife team accomplished in 2024 and am excited about future opportunities for our brands and our company. During 2023, we borrowed
Earnings Conference Call
The Company will hold an investor conference call on Thursday, March 27, 2025 at 4:30 pm ET. Investors interested in participating in the live call can dial (833) 492-0064 from the U.S. and provide the conference identification code of 133626. International participants can dial (973) 528-0163 and provide the same code.
About FitLife Brands
FitLife Brands is a developer and marketer of innovative and proprietary nutritional supplements and wellness products for health-conscious consumers. FitLife markets more than 250 different products primarily online, but also through domestic and international GNC® franchise locations as well as through various retail locations. 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 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.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share amounts)
| December 31, 2024 | December 31, 2023 | |||||||
| ASSETS: | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 4,468 | $ | 1,139 | ||||
| Restricted cash | 52 | 759 | ||||||
| Accounts receivable, net of allowance of doubtful accounts of | 1,626 | 2,046 | ||||||
| Inventories, net of allowance for obsolescence of | 11,074 | 9,091 | ||||||
| Sales tax receivable | 25 | 1,019 | ||||||
| Prepaid expense and other current assets | 898 | 639 | ||||||
| Total current assets | 18,143 | 14,693 | ||||||
| Property and equipment, net | 75 | 137 | ||||||
| Right of use asset | 412 | 121 | ||||||
| Intangibles, net of amortization of | 26,235 | 26,309 | ||||||
| Goodwill | 13,022 | 13,294 | ||||||
| Deferred tax asset | 644 | 792 | ||||||
| TOTAL ASSETS | $ | 58,531 | $ | 55,346 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 4,067 | $ | 3,261 | ||||
| Accrued expense and other liabilities | 684 | 1,026 | ||||||
| Income taxes payable | 1,415 | 892 | ||||||
| Product returns | 564 | 571 | ||||||
| Term loan – current portion | 4,500 | 4,500 | ||||||
| Lease liability - current portion | 81 | 87 | ||||||
| Total current liabilities | 11,311 | 10,337 | ||||||
| Term loan, net of current portion and unamortized deferred finance costs | 8,550 | 15,509 | ||||||
| Long-term lease liability, net of current portion | 331 | 51 | ||||||
| Deferred tax liability | 2,213 | 2,413 | ||||||
| TOTAL LIABILITIES | 22,405 | 28,310 | ||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Preferred stock, | - | - | ||||||
| Common stock, | 92 | 92 | ||||||
| Additional paid-in capital | 31,129 | 30,653 | ||||||
| Retained earnings (accumulated deficit) | 5,567 | (3,417 | ) | |||||
| Foreign currency translation adjustment | (662 | ) | (292 | ) | ||||
| TOTAL STOCKHOLDERS' EQUITY | 36,126 | 27,036 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 58,531 | $ | 55,346 | ||||
FITLIFE BRANDS, INC.
CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share amounts)
| Years ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| Revenue | $ | 64,469 | $ | 52,700 | ||||
| Cost of goods sold | 36,389 | 31,268 | ||||||
| Gross profit | 28,080 | 21,432 | ||||||
| OPERATING EXPENSE: | ||||||||
| Advertising and marketing | 4,626 | 4,276 | ||||||
| Selling, general and administrative | 9,972 | 7,885 | ||||||
| Merger and acquisition related | 255 | 1,627 | ||||||
| Depreciation and amortization | 108 | 94 | ||||||
| Total operating expense | 14,961 | 13,882 | ||||||
| OPERATING INCOME | 13,119 | 7,550 | ||||||
| OTHER EXPENSE (INCOME) | ||||||||
| Interest income | (69 | ) | (289 | ) | ||||
| Interest expense | 1,367 | 1,025 | ||||||
| Foreign exchange gain | (50 | ) | (189 | ) | ||||
| Total other expense, net | 1,248 | 547 | ||||||
| INCOME BEFORE INCOME TAX PROVISION | 11,871 | 7,003 | ||||||
| PROVISION FOR INCOME TAXES | 2,887 | 1,707 | ||||||
| NET INCOME | $ | 8,984 | $ | 5,296 | ||||
| NET INCOME PER SHARE | ||||||||
| Basic | $ | 0.98 | $ | 0.59 | ||||
| Diluted | $ | 0.91 | $ | 0.54 | ||||
| Basic weighted average common shares | 9,197 | 8,980 | ||||||
| Diluted weighted average common shares | 9,898 | 9,810 | ||||||
| | ||||||||
FITLIFE BRANDS, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
| Years ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 8,984 | $ | 5,296 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 108 | 94 | ||||||
| Allowance for doubtful accounts | 24 | (33 | ) | |||||
| Allowance for inventory obsolescence | (62 | ) | 55 | |||||
| Stock-based compensation | 459 | 473 | ||||||
| Amortization of deferred finance costs | 41 | 15 | ||||||
| Amortization of inventory step-up | - | 323 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | 361 | (882 | ) | |||||
| Inventories | (2,109 | ) | 1,026 | |||||
| Deferred taxes | 148 | 957 | ||||||
| Prepaid expense, other assets and sales tax receivable | 692 | (178 | ) | |||||
| Right of use asset | 90 | 83 | ||||||
| Accounts payable | 866 | (2,679 | ) | |||||
| Income taxes payable | 634 | (356 | ) | |||||
| Lease liability | (107 | ) | (77 | ) | ||||
| Accrued liabilities and other liabilities | (512 | ) | 122 | |||||
| Product returns | (7 | ) | (19 | ) | ||||
| Net cash provided by operating activities | 9,610 | 4,220 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of property and equipment | (10 | ) | (106 | ) | ||||
| Cash paid for acquisition of Mimi’s Rock Corp. | - | (17,099 | ) | |||||
| Cash paid for acquisition of MusclePharm assets | - | (18,788 | ) | |||||
| Net cash used in investing activities | (10 | ) | (35,993 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from exercise of stock options and warrants | 17 | 171 | ||||||
| Borrowings on term loans | - | 22,500 | ||||||
| Payments on term loans | (7,000 | ) | (2,375 | ) | ||||
| Net cash provided by (used in) financing activities | (6,983 | ) | 20,296 | |||||
| Foreign currency impact on cash | 5 | 98 | ||||||
| CHANGE IN CASH AND RESTRICTED CASH | 2,622 | (11,379 | ) | |||||
| CASH AND RESTRICTED CASH, BEGINNING OF PERIOD | 1,898 | 13,277 | ||||||
| CASH AND RESTRICTED CASH, END OF PERIOD | $ | 4,520 | $ | 1,898 | ||||
| Supplemental cash flow disclosure | ||||||||
| Cash paid for income taxes | $ | 2,498 | $ | 698 | ||||
| Cash paid for interest, net of amounts capitalized | $ | 1,361 | $ | 777 | ||||
Non-GAAP Financial Measures
The financial information included in this release and the presentation below contain certain financial measures defined as “non-GAAP financial measures” by the SEC, including non-GAAP EBITDA and non-GAAP adjusted 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 accordance with GAAP.
As presented below, non-GAAP EBITDA excludes interest, foreign currency gain/loss, income taxes, and depreciation and amortization. Adjusted non-GAAP EBITDA excludes, in addition to interest, foreign currency gain/loss, taxes, depreciation and amortization, equity-based compensation, M&A/integration expense, restructuring 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.
The Company’s calculation of Adjusted EBITDA for the year ended December 31, 2024 and 2023 is as follows:
| Year ended December 31, | ||||||||
| 2024 | 2023 | |||||||
| (Unaudited) | (Unaudited) | |||||||
| Net income | $ | 8,984 | $ | 5,296 | ||||
| Interest expense | 1,367 | 1,025 | ||||||
| Interest income | (69 | ) | (289 | ) | ||||
| Foreign exchange gain | (50 | ) | (189 | ) | ||||
| Provision for income taxes | 2,887 | 1,707 | ||||||
| Depreciation and amortization | 108 | 94 | ||||||
| EBITDA | 13,227 | 7,644 | ||||||
| Non-cash and non-recurring adjustments | ||||||||
| Stock-based compensation | 459 | 473 | ||||||
| Merger and acquisition related | 255 | 1,627 | ||||||
| Restructuring costs | 184 | - | ||||||
| Amortization of inventory step-up | - | 323 | ||||||
| Non-recurring loss on foreign currency forward contract | - | 112 | ||||||
| Adjusted EBITDA | $ | 14,125 | $ | 10,179 | ||||
investor@fitlifebrands.com
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