FitLife Brands Announces Second Quarter 2024 Results
FitLife Brands (NASDAQ: FTLF) reported strong Q2 2024 results with total revenue up 15% to $16.9 million. Online sales grew 13% to $11.2 million, representing 66% of total revenue. Gross margin improved to 44.8% from 40.4% in Q2 2023. Net income increased to $2.6 million, with basic EPS of $0.57 and diluted EPS of $0.53. Adjusted EBITDA rose 29% to $3.8 million.
The company's recent acquisitions of Mimi's Rock Corp and MusclePharm assets contributed $1.5 million in wholesale revenue. Legacy FitLife brands faced challenges in wholesale but saw growth online. The Mimi's Rock brands showed significant improvement in profitability despite lower revenue. MusclePharm revenue grew 27% sequentially from Q1 2024.
FitLife ended the quarter with $11.7 million in net debt, representing about 0.9x adjusted EBITDA. The company is building cash while evaluating M&A opportunities.
FitLife Brands (NASDAQ: FTLF) ha riportato risultati solidi per il secondo trimestre del 2024, con un aumento del fatturato del 15% a 16,9 milioni di dollari. Le vendite online sono cresciute del 13% a 11,2 milioni di dollari, rappresentando il 66% del fatturato totale. Il margine lordo è migliorato al 44,8% rispetto al 40,4% del Q2 2023. L'utile netto è aumentato a 2,6 milioni di dollari, con un utile per azione base di 0,57 dollari e un utile per azione diluito di 0,53 dollari. L'EBITDA rettificato è cresciuto del 29%, raggiungendo 3,8 milioni di dollari.
Le recenti acquisizioni di Mimi's Rock Corp e degli asset di MusclePharm hanno contribuito con 1,5 milioni di dollari in fatturato all'ingrosso. I marchi storici di FitLife hanno affrontato sfide nel canale all'ingrosso, ma hanno visto una crescita online. I marchi di Mimi's Rock hanno mostrato un notevole miglioramento nella redditività, nonostante un fatturato più basso. Il fatturato di MusclePharm è cresciuto del 27% rispetto al primo trimestre del 2024.
FitLife ha concluso il trimestre con 11,7 milioni di dollari di debito netto, che rappresentano circa 0,9 volte l'EBITDA rettificato. L'azienda sta accumulando liquidità mentre valuta opportunità di fusione e acquisizione.
FitLife Brands (NASDAQ: FTLF) reportó resultados sólidos en el segundo trimestre de 2024, con un aumento del 15% en ingresos totales a 16,9 millones de dólares. Las ventas en línea crecieron un 13%, alcanzando 11,2 millones de dólares, lo que representó el 66% de los ingresos totales. El margen bruto mejoró al 44,8% desde el 40,4% en el Q2 de 2023. El ingreso neto aumentó a 2,6 millones de dólares, con un EPS básico de 0,57 dólares y un EPS diluido de 0,53 dólares. El EBITDA ajustado creció un 29% a 3,8 millones de dólares.
Las adquisiciones recientes de Mimi's Rock Corp y los activos de MusclePharm aportaron 1,5 millones de dólares en ingresos al por mayor. Las marcas históricas de FitLife enfrentaron desafíos en el canal mayorista, pero vieron crecimiento en línea. Las marcas de Mimi's Rock mostraron una mejora significativa en rentabilidad a pesar de la disminución de ingresos. Los ingresos de MusclePharm crecieron un 27% secuencialmente desde el Q1 de 2024.
FitLife terminó el trimestre con 11,7 millones de dólares en deuda neta, lo que representa aproximadamente 0,9 veces el EBITDA ajustado. La empresa está acumulando efectivo mientras evalúa oportunidades de fusiones y adquisiciones.
FitLife Brands (NASDAQ: FTLF)는 2024년 2분기 실적이 강력했다며 총 수익이 15% 증가하여 1,690만 달러에 도달했다고 보고했다. 온라인 매출은 13% 증가하여 1,120만 달러에 이르렀으며, 이는 총 수익의 66%를 차지한다. 총 이익률은 40.4%에서 44.8%로 개선됐다 (2023년 2분기 기준). 순이익은 260만 달러로 증가했으며, 기본 주당 순이익이 0.57달러, 희석 주당 순이익이 0.53달러이다. 조정 EBITDA는 29% 증가하여 380만 달러에 달했다.
회사 최근 인수한 Mimi's Rock Corp와 MusclePharm 자산은 도매 수익으로 150만 달러를 기여하였다. 기존 FitLife 브랜드는 도매에서 어려움을 겪고 있지만 온라인에서 성장을 경험하고 있다. Mimi's Rock 브랜드는 수익이 감소했음에도 불구하고 수익성에서 상당한 개선을 보였다. MusclePharm의 수익은 2024년 1분기 대비 27% 증가했다.
FitLife는 1,170만 달러의 순부채로 분기를 마감했으며, 이는 조정 EBITDA의 약 0.9배에 해당한다. 회사는 M&A 기회를 평가하면서 현금을 축적하고 있다.
FitLife Brands (NASDAQ: FTLF) a annoncé de solides résultats pour le deuxième trimestre 2024, avec une augmentation de 15% du chiffre d'affaires total à 16,9 millions de dollars. Les ventes en ligne ont crû de 13% pour atteindre 11,2 millions de dollars, représentant 66% du chiffre d'affaires total. La marge brute s'est améliorée pour atteindre 44,8%, contre 40,4% au Q2 2023. Le bénéfice net a augmenté à 2,6 millions de dollars, avec un BPA de base de 0,57 dollar et un BPA dilué de 0,53 dollar. L'EBITDA ajusté a augmenté de 29% pour atteindre 3,8 millions de dollars.
Les récentes acquisitions de Mimi's Rock Corp et des actifs de MusclePharm ont contribué à 1,5 million de dollars de revenus en gros. Les marques historiques de FitLife ont rencontré des défis dans le secteur de gros, mais ont vu une croissance en ligne. Les marques de Mimi's Rock ont montré une amélioration significative de la rentabilité malgré une diminution des revenus. Le chiffre d'affaires de MusclePharm a augmenté de 27% par rapport au premier trimestre 2024.
FitLife a terminé le trimestre avec 11,7 millions de dollars de dette nette, ce qui représente environ 0,9 fois l'EBITDA ajusté. L'entreprise construit des liquidités tout en évaluant les opportunités de fusions et acquisitions.
FitLife Brands (NASDAQ: FTLF) berichtete über starke Ergebnisse im Q2 2024, mit einem Anstieg des Gesamtumsatzes um 15% auf 16,9 Millionen Dollar. Der Online-Verkauf wuchs um 13% auf 11,2 Millionen Dollar und machte 66% des Gesamtumsatzes aus. Die Bruttomarge verbesserte sich auf 44,8% gegenüber 40,4% im Q2 2023. Der Nettogewinn stieg auf 2,6 Millionen Dollar, mit einem Basis-EPS von 0,57 Dollar und einem verwässerten EPS von 0,53 Dollar. Das angepasste EBITDA stieg um 29% auf 3,8 Millionen Dollar.
Die jüngsten Übernahmen von Mimi's Rock Corp und Vermögenswerten von MusclePharm trugen 1,5 Millionen Dollar zum Großhandelsumsatz bei. Die traditionellen FitLife-Marken hatten im Großhandel Herausforderungen, verzeichneten jedoch im Online-Bereich Wachstum. Die Marken von Mimi's Rock zeigten trotz geringerer Einnahmen eine signifikante Verbesserung der Rentabilität. Der Umsatz von MusclePharm stieg sequenziell um 27% im Vergleich zum Q1 2024.
FitLife beendete das Quartal mit 11,7 Millionen Dollar an Nettoschulden, was etwa dem 0,9-fachen des angepassten EBITDA entspricht. Das Unternehmen baut Bargeld auf, während es M&A-Möglichkeiten evaluiert.
- Total revenue increased 15% year-over-year to $16.9 million
- Online sales grew 13% to $11.2 million, representing 66% of total revenue
- Gross margin improved to 44.8% from 40.4% in Q2 2023
- Net income increased to $2.6 million from $2.0 million in Q2 2023
- Adjusted EBITDA rose 29% to $3.8 million
- MusclePharm revenue grew 27% sequentially from Q1 2024
- Net debt reduced to approximately 0.9x adjusted EBITDA
- Legacy FitLife wholesale revenue declined 10% year-over-year
- Mimi's Rock Corp revenue declined 2% compared to Q2 2023
- Skin care brands revenue (Maritime Naturals and All Natural Advice) declined 37% in Q2 2024
Insights
FitLife Brands' Q2 2024 results show strong growth and improved profitability. Total revenue increased by
Key positives include:
- Adjusted EBITDA growth of
29% to$3.8 million - Improved earnings per share:
$0.57 basic and$0.53 diluted - Strong cash position with
$3.7 million in cash and an undrawn$3.5 million credit line
FitLife's results reflect broader trends in the nutritional supplements industry. The
The company's strategic decisions, such as exiting unprofitable markets for skin care brands and optimizing advertising spend, demonstrate a focus on profitability over pure revenue growth. This approach has led to significant improvements in gross margin and contribution as a percentage of revenue.
The MusclePharm acquisition shows promise, with
Omaha, Aug. 14, 2024 (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 second quarter ended June 30, 2024.
Highlights for the second quarter ended June 30, 2024 include:
- Total revenue was
$16.9 million , an increase of15% compared to the second quarter of 2023. - Online sales were
$11.2 million , representing66% of total revenue and an increase of13% compared to the second quarter of 2023. - Gross margin was
44.8% compared to40.4% during the second quarter of 2023. - Net income was
$2.6 million compared to$2.0 million during the second quarter of 2023. - Basic earnings per share and diluted earnings per share were
$0.57 and$0.53 , respectively, compared to$0.44 and$0.40 during the second quarter of 2023. - Adjusted EBITDA was
$3.8 million , a29% increase compared to the second quarter of 2023. - The Company ended the quarter with
$15.4 million outstanding on its term loans and cash of$3.7 million , or total net debt of$11.7 million .
For the second quarter ended June 30, 2024, total revenue was
Wholesale revenue for the quarter ended June 30, 2024 was
Gross margin for the quarter ended June 30, 2024 was
Net income for the second quarter of 2024 was
Adjusted EBITDA for the quarter ended June 30, 2024 was
As of June 30, 2024, the Company had
Performance of Acquired Brands
Management frequently receives questions from investors regarding the performance of brands subsequent to their acquisition by the Company. In an effort to be responsive to these questions, the Company has provided additional disclosure in this press release and in the Management’s Discussion and Analysis section of the Company’s Form 10-Q filed with the SEC. The Company currently intends to provide this level of disclosure for no more than two years following a transaction, after which the performance of acquired brands will be reported as part of Legacy FitLife results.
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 | ||||||||||
| Q2 | Q3 | Q4 | Q1 | Q2 | |||||||
| Wholesale revenue | 4,715 | 4,361 | 4,011 | 4,506 | 4,224 | ||||||
| Online revenue | 2,418 | 2,339 | 2,134 | 2,455 | 2,578 | ||||||
| Total revenue | 7,133 | 6,700 | 6,145 | 6,961 | 6,802 | ||||||
| Gross profit | 2,999 | 2,490 | 2,480 | 2,928 | 3,006 | ||||||
| Gross margin | 42.0 | % | 37.2 | % | 40.4 | % | 42.1 | % | 44.2 | % | |
| Advertising and marketing | 63 | 79 | 71 | 80 | 94 | ||||||
| Contribution | 2,936 | 2,411 | 2,409 | 2,848 | 2,912 | ||||||
| Contribution as a % of revenue | 41.2 | % | 36.0 | % | 39.2 | % | 40.9 | % | 42.8 | % | |
For the second quarter of 2024, legacy FitLife revenue declined
Despite the revenue decline, gross profit for legacy FitLife increased slightly and contribution decreased slightly compared to the same period last year. Gross margin increased from
The Company’s wholesale revenue continues to be challenged by declining customer counts in the brick-and-mortar stores of our wholesale partners. However, at least some of the customers choosing to no longer shop in brick-and-mortar locations continue to purchase legacy FitLife products online, and when a customer buys online the Company earns substantially higher gross profit and contribution. More specifically, on a year-over-year basis during the second quarter of 2024, wholesale revenue for legacy FitLife declined by
| Mimi's Rock (MRC) | ||||||||||||
| (Unaudited) | ||||||||||||
| 2023 | 2024 | |||||||||||
| Q2 | Q3 | Q4 | Q1 | Q2 | ||||||||
| Wholesale revenue | 137 | 85 | 91 | 94 | 90 | |||||||
| Online revenue | 7,490 | 7,117 | 6,811 | 7,399 | 7,371 | |||||||
| Total revenue | 7,627 | 7,202 | 6,902 | 7,493 | 7,461 | |||||||
| Gross profit | 2,966 | 3,206 | 2,790 | 3,520 | 3,597 | |||||||
| Gross margin | 38.9 | % | 44.5 | % | 40.4 | % | 47.0 | % | 48.2 | % | ||
| Advertising and marketing | 1,394 | 1,196 | 846 | 1,062 | 1,071 | |||||||
| Contribution | 1,572 | 2,010 | 1,944 | 2,458 | 2,526 | |||||||
| Contribution as % of revenue | 20.6 | % | 27.9 | % | 28.2 | % | 32.8 | % | 33.9 | % | ||
For the second quarter of 2024, MRC revenue declined
For the second quarter of 2024, gross margin increased to
Revenue for the largest MRC brand—Dr. Tobias—increased
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 gross profit for the MRC brands is primarily the result of this optimization of the skin care brands as well as beneficial product mix within the Dr. Tobias brand. 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 | |||||||||||
| Q2 | Q3 | Q4 | Q1 | Q2 | ||||||||
| Wholesale revenue | - | - | 180 | 1,117 | 1,388 | |||||||
| Online revenue | - | - | 73 | 978 | 1,279 | |||||||
| Total revenue | - | - | 253 | 2,095 | 2,667 | |||||||
| Gross profit | - | - | 93 | 839 | 977 | |||||||
| Gross margin | 0.0 | % | 0.0 | % | 36.8 | % | 40.0 | % | 36.6 | % | ||
| Advertising and marketing | - | - | - | 86 | 161 | |||||||
| Contribution | - | - | 93 | 753 | 816 | |||||||
| Contribution as % of revenue | 0.0 | % | 0.0 | % | 36.8 | % | 35.9 | % | 30.6 | % | ||
MusclePharm revenue increased
In an effort to drive revenue growth, the Company is making targeted investments in advertising and promotion in both the wholesale and online channels. As a result of these investments, gross margin and contribution as a percentage of revenue declined, although total gross profit and contribution in dollar terms increased sequentially.
In addition, the Company is exploring additional new product launches and continues to have productive discussions with a number of potential new wholesale partners.
| FitLife Consolidated | ||||||||||||
| (Unaudited) | ||||||||||||
| 2023 | 2024 | |||||||||||
| Q2 | Q3 | Q4 | Q1 | Q2 | ||||||||
| Wholesale revenue | 4,852 | 4,446 | 4,282 | 5,717 | 5,702 | |||||||
| Online revenue | 9,908 | 9,456 | 9,018 | 10,832 | 11,228 | |||||||
| Total revenue | 14,760 | 13,902 | 13,300 | 16,549 | 16,930 | |||||||
| Gross profit | 5,965 | 5,696 | 5,363 | 7,287 | 7,580 | |||||||
| Gross margin | 40.4 | % | 41.0 | % | 40.3 | % | 44.0 | % | 44.8 | % | ||
| Advertising and marketing | 1,457 | 1,275 | 917 | 1,228 | 1,326 | |||||||
| Contribution | 4,508 | 4,421 | 4,446 | 6,059 | 6,254 | |||||||
| Contribution as % of revenue | 30.5 | % | 31.8 | % | 33.4 | % | 36.6 | % | 36.9 | % | ||
For the Company overall, revenue increased
Gross margin increased to
Contribution as a percentage of revenue increased to
Management Commentary
Dayton Judd, the Company’s Chairman and CEO commented, “During the second quarter of 2024, the Company continued to see many bright spots in our business. At MRC, the Dr. Tobias brand—which represents approximately
“Although our legacy FitLife brands continue to face headwinds in the wholesale channel due to declining foot traffic at our brick-and-mortar retail partners, the transition of even a small portion of that lost wholesale revenue to the online channel means the Company’s profitability is not diminished. Online revenue growth for the legacy FitLife brands thus far during the third quarter continues to be encouraging.
“With regard to MusclePharm, we are encouraged by the sequential growth the brand has experienced under our ownership and we intend to invest in advertising and promotion to drive continued growth.
“Overall, I am pleased with the strong performance of our brands, which would not be possible without the continued dedication of each FitLife team member. The Company’s balance sheet is strong, with net debt now representing approximately only 0.9x adjusted EBITDA. Although no transaction is imminent, the Company is currently electing to build cash as it continues to evaluate M&A opportunities. As of August 13, 2024, the Company’s cash balance was
Earnings Conference Call
The Company will hold an investor conference call on Wednesday, August 14, 2024 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 266347. 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 approximately 16,000 additional domestic 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.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
| June 30, 2024 | December 31, 2023 | |||||||
| (Unaudited) | ||||||||
| ASSETS: | ||||||||
| CURRENT ASSETS | ||||||||
| Cash and cash equivalents | $ | 3,680 | $ | 1,139 | ||||
| Restricted cash | 55 | 759 | ||||||
| Accounts receivable, net of allowance of doubtful accounts of | 2,498 | 2,046 | ||||||
| Inventories, net of allowance for obsolescence of | 9,779 | 9,091 | ||||||
| Sales tax receivable | 111 | 1,019 | ||||||
| Prepaid expense and other current assets | 911 | 639 | ||||||
| Total current assets | 17,034 | 14,693 | ||||||
| Property and equipment, net | 106 | 137 | ||||||
| Right of use asset | 73 | 121 | ||||||
| Intangibles, net of amortization of | 26,308 | 26,309 | ||||||
| Goodwill | 13,108 | 13,294 | ||||||
| Deferred tax asset | 682 | 792 | ||||||
| TOTAL ASSETS | $ | 57,311 | $ | 55,346 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY: | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 4,309 | $ | 3,261 | ||||
| Accrued expense and other liabilities | 1,082 | 1,026 | ||||||
| Income taxes payable | 1,844 | 892 | ||||||
| Product returns | 530 | 571 | ||||||
| Term loan – current portion | 4,500 | 4,500 | ||||||
| Lease liability - current portion | 58 | 87 | ||||||
| Total current liabilities | 12,323 | 10,337 | ||||||
| Term loan, net of current portion and unamortized deferred finance costs | 10,778 | 15,509 | ||||||
| Long-term lease liability, net of current portion | 25 | 51 | ||||||
| Deferred tax liability | 2,329 | 2,413 | ||||||
| TOTAL LIABILITIES | 25,455 | 28,310 | ||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
| Preferred stock, | - | - | ||||||
| Common stock, | 46 | 46 | ||||||
| Additional paid-in capital | 30,902 | 30,699 | ||||||
| Retained earnings (accumulated deficit) | 1,371 | (3,417 | ) | |||||
| Foreign currency translation adjustment | (463 | ) | (292 | ) | ||||
| TOTAL STOCKHOLDERS' EQUITY | 31,856 | 27,036 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 57,311 | $ | 55,346 | ||||
FITLIFE BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(In thousands, except per share data)
(Unaudited)
| Three months ended June 30 | Six months ended June 30 | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Revenue | $ | 16,930 | $ | 14,760 | $ | 33,479 | $ | 25,498 | ||||||||
| Cost of goods sold | 9,350 | 8,795 | 18,612 | 15,125 | ||||||||||||
| Gross profit | 7,580 | 5,965 | 14,867 | 10,373 | ||||||||||||
| OPERATING EXPENSE: | ||||||||||||||||
| Advertising and marketing | 1,326 | 1,457 | 2,554 | 2,084 | ||||||||||||
| Selling, general and administrative | 2,528 | 1,786 | 5,036 | 3,502 | ||||||||||||
| Merger and acquisition related | 24 | 115 | 158 | 1,487 | ||||||||||||
| Depreciation and amortization | 27 | 23 | 63 | 42 | ||||||||||||
| Total operating expense | 3,905 | 3,381 | 7,811 | 7,115 | ||||||||||||
| OPERATING INCOME | 3,675 | 2,584 | 7,056 | 3,258 | ||||||||||||
| OTHER EXPENSE (INCOME) | ||||||||||||||||
| Interest income | (17 | ) | (66 | ) | (22 | ) | (150 | ) | ||||||||
| Interest expense | 345 | 251 | 759 | 349 | ||||||||||||
| Foreign exchange (gain) loss | (10 | ) | (200 | ) | (5 | ) | (117 | ) | ||||||||
| Total other expense (income) | 318 | (15 | ) | 732 | 82 | |||||||||||
| INCOME BEFORE INCOME TAX PROVISION | 3,357 | 2,599 | 6,324 | 3,176 | ||||||||||||
| PROVISION FOR INCOME TAXES | 729 | 635 | 1,536 | 1,056 | ||||||||||||
| NET INCOME | $ | 2,628 | $ | 1,964 | $ | 4,788 | $ | 2,120 | ||||||||
| NET INCOME PER SHARE | ||||||||||||||||
| Basic | $ | 0.57 | $ | 0.44 | $ | 1.04 | $ | 0.47 | ||||||||
| Diluted | $ | 0.53 | $ | 0.40 | $ | 0.97 | $ | 0.43 | ||||||||
| Basic weighted average common shares | 4,598 | 4,446 | 4,598 | 4,464 | ||||||||||||
| Diluted weighted average common shares | 4,950 | 4,887 | 4,931 | 4,906 | ||||||||||||
FITLIFE BRANDS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2024 AND 2023
(In thousands)
(Unaudited)
| Six months ended June 30, | ||||||||
| 2024 | 2023 | |||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
| Net income | $ | 4,788 | $ | 2,120 | ||||
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
| Depreciation and amortization | 63 | 42 | ||||||
| Allowance for doubtful accounts | 1 | (17 | ) | |||||
| Allowance for inventory obsolescence | (93 | ) | 15 | |||||
| Stock-based compensation | 203 | 74 | ||||||
| Amortization of deferred financing costs | 19 | 5 | ||||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable - trade | (480 | ) | (429 | ) | ||||
| Inventories | (641 | ) | 1,164 | |||||
| Deferred tax asset | 110 | 503 | ||||||
| Prepaid expense, other current assets and sales tax receivable | 770 | (472 | ) | |||||
| Right-of-use asset | 45 | 38 | ||||||
| Accounts payable | 1,064 | (1,611 | ) | |||||
| Lease liability | (53 | ) | (39 | ) | ||||
| Accrued expense, other liabilities and income taxes payable | 851 | 401 | ||||||
| Product returns | (41 | ) | - | |||||
| Net cash provided by operating activities | 6,606 | 1,794 | ||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of property and equipment | (10 | ) | (54 | ) | ||||
| Cash paid for acquisition of Mimi’s Rock Corp. | - | (17,099 | ) | |||||
| Net cash used in investing activities | (10 | ) | (17,153 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Payments on term loans | (4,750 | ) | (625 | ) | ||||
| Proceeds from term loans | - | 12,500 | ||||||
| Net cash provided by (used in) financing activities | (4,750 | ) | 11,875 | |||||
| Foreign currency impact on cash | (9 | ) | 40 | |||||
| CHANGE IN CASH AND RESTRICTED CASH | 1,837 | (3,444 | ) | |||||
| CASH AND RESTRICTED CASH, BEGINNING OF PERIOD | 1,898 | 13,277 | ||||||
| CASH AND RESTRICTED CASH, END OF PERIOD | $ | 3,735 | $ | 9,833 | ||||
| Supplemental cash flow disclosure | ||||||||
| Cash paid for income taxes | $ | 517 | $ | 241 | ||||
| Cash paid for interest, net of amounts capitalized | $ | 761 | $ | 213 |
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, income taxes, depreciation and amortization and foreign currency gain/loss. Adjusted non-GAAP EBITDA excludes, in addition to interest, taxes, depreciation and amortization and foreign currency gain/loss, equity-based compensation, M&A/integration expense 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 three and six months ended June 30, 2024 and 2023 is as follows:
| For the three months ended June 30, | For the six months ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| (Unaudited) | (Unaudited) | (Unaudited) | (Unaudited) | |||||||||||||
| Net income | $ | 2,628 | $ | 1,964 | $ | 4,788 | $ | 2,120 | ||||||||
| Interest expense | 345 | 251 | 759 | 349 | ||||||||||||
| Interest income | (17 | ) | (66 | ) | (22 | ) | (150 | ) | ||||||||
| Foreign exchange (gain) loss | (10 | ) | (200 | ) | (5 | ) | (117 | ) | ||||||||
| Provision for income taxes | 729 | 635 | 1,536 | 1,056 | ||||||||||||
| Depreciation and amortization | 27 | 23 | 63 | 42 | ||||||||||||
| EBITDA | 3,702 | 2,607 | 7,119 | 3,300 | ||||||||||||
| Non-cash and non-recurring adjustments | ||||||||||||||||
| Stock-based compensation | 101 | 31 | 203 | 74 | ||||||||||||
| Merger and acquisition related | 24 | 115 | 158 | 1,487 | ||||||||||||
| Amortization of inventory step-up | - | 213 | - | 323 | ||||||||||||
| Non-recurring loss on foreign currency forward contract | - | - | - | 112 | ||||||||||||
| Adjusted EBITDA | $ | 3,827 | $ | 2,966 | $ | 7,480 | $ | 5,296 | ||||||||
FAQ
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