Omaha, Aug. 15, 2022 (GLOBE NEWSWIRE) -- FitLife Brands Announces Preliminary Second
Quarter 2022 Results and Hiring of New CFO
OMAHA, NE – August 15, 2022 – FitLife Brands, Inc. (“FitLife” or the “Company”) (OTC PINK: FTLF), a provider of innovative and proprietary nutritional supplements for health-conscious consumers marketed under the brand names NDS Nutrition, PMD, SirenLabs, Nutrology, CoreActive, Metis Nutrition, iSatori, Energize, and BioGenetic Laboratories, today announced preliminary financial results for the three months ended June 30, 2022.
The Company is providing the following preliminary update, not subject to any procedures by our independent registered public accounting firm, regarding its performance for the second quarter ended June 30, 2022 (unaudited):
Total revenue is anticipated to be $7.9-8.1 million, of which online revenue is anticipated to be approximately $2.1 million.
Gross profit is anticipated to be $3.6-3.7 million.
Net income is anticipated to be $1.4-1.5 million.
Adjusted EBITDA is anticipated to be $1.9-2.0 million.
The Company ended the second quarter with no debt and a cash balance of $12.3 million.
During the second quarter, the Company received supplier rebates of approximately $250,000 that historically were received during the first quarter. In addition, included in the Company’s preliminary second quarter results are approximately $200,000 of M&A expenses related to a transaction that the Company ultimately elected not to pursue and approximately $70,000 of non-recurring expenses relating to the Company’s ongoing work regarding a potential restatement of historical financial statements. The Company continues to make progress on the analysis of a potential restatement and anticipates completing the process prior to the end of the third quarter.
The Company’s performance has continued to be strong thus far during the third quarter. From January through late July, the Company’s online revenue growth rate was approximately 21-22% on a year-over-year basis. Beginning in late July, we began to experience an acceleration in our online revenue growth rate. For the first two weeks of August, our year-over-year online revenue growth rate was approximately 42%.
The retail sales growth rate of our products through our wholesale channels also increased over the past four weeks, although the increase has not been as pronounced as in the online business. The Company’s cash balance, which was $13.5 million as of August 14, 2022, continues to grow.
On August 15, 2022, the Company hired Jakob York as its new Chief Financial Officer. Susan Kinnaman, the Company’s previous CFO, will remain with the Company as VP of Finance. Prior to joining FitLife, Jakob served as Controller for Greenidge Generation Holdings (NASDAQ: GREE). Prior to Greenidge, Jakob worked in various controller and financial reporting capacities, primarily at Allied Motion Technologies (NASDAQ: AMOT). Jakob began his career working for PwC. Jakob, who is a Certified Public Accountant, holds Bachelors and Masters degrees in Accounting from Brigham Young University.
Jakob York, the Company’s new CFO, commented, “I am thrilled to join FitLife, and I look forward to working with the rest of the management team to drive further growth and profitability.” Dayton Judd, the Company’s Chairman and CEO, commented, “I am excited to welcome Jakob to the team. And I am encouraged by the Company’s continued strong performance, particularly the recent acceleration in our online revenue growth rate. We continue to actively evaluate opportunities to deploy our strong and growing cash balance into accretive acquisitions.”
About FitLife Brands
FitLife Brands is a developer and marketer of innovative and proprietary nutritional supplements for health-conscious consumers. FitLife markets over 130 different dietary supplements to promote sports nutrition, improved performance, weight loss and general health primarily through domestic and international GNC franchise locations as well as through more than 17,000 additional domestic retail locations and, increasingly, online. FitLife is headquartered in Omaha, Nebraska. For more information please visit our 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 for the year ended December 31, 2021 or 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, analysis of and impact resulting from certain revenue recognition procedures discussed in this press release, including, but not limited to the potential of adjustments to revenue reported in prior periods, as well as 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.
Non-GAAP Financial Measures
Certain information set forth above represent “non-GAAP financial measures” as defined by the SEC, including adjusted EBITDA. These measures may be different from non-GAAP financial measures used by other companies. 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 to be prepared and presented in the Company’s Annual Report in accordance with GAAP.
Non-GAAP adjusted EBITDA excludes interest, income taxes, depreciation and amortization, equity-based compensation 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 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.