Fitlife Brands, Inc. (NASDAQ:FTLF)

WEB NEWS

Monday, November 13, 2023

Research

FitLife Brands, Inc. (Nasdaq: FTLF) ($22.0, $109 million market cap),a provider of innovative and proprietary nutritional supplements and wellness products, has released its financial results for the third quarter of 2023. Here is a summary of the key points along with management commentary:

Financial Highlights:

Sales and Earnings Highlights:

  • Total Revenue: Increased by 67% to $13.9 million, primarily due to an increase in revenue from its recently acquired business, Mimi’s Rock Corp.
  • Net Income: Grew by 39% to $1.7 million.
  • Earnings per Share: Basic EPS up by 41% to $0.38
  • Diluted EPS up by 46% to $0.35.

Other Financial Highlights:

  • Adjusted EBITDA: Rose by 36% to $2.5 million.
  • Online Revenue: Constituted 68% of total revenue, a significant increase from the previous year.
  • Gross Margin: Improved to 41.0% from 39.0%??.

Operational Highlights:

  • MRC Integration: Achieved cost reductions and improved profitability at Mimi’s Rock Corp (recent acquisition), with significant cuts in advertising expenses, but still leading to increased profitability.
  • Legacy FitLife: Encountered a 19% decline in revenue, with a strategy to explore new international opportunities and improve online performance??.
  • MusclePharm Acquisition: Closed the acquisition and initiated the re-launch of successful products, with expectations for online revenue to exceed $5 million in 2024??.

Management Commentary:

Dayton Judd, FitLife’s Chairman and CEO, commented, “Although the third and fourth quarters of each year are traditionally the slowest for the Company, I am pleased with our overall performance.  While recent legacy FitLife performance has not met expectations, the weakness has been largely offset by strong financial performance at MRC.  Going forward, I am optimistic that legacy FitLife performance will improve, and I am excited about the continued improvements at MRC as well as the potential of the MusclePharm brand to create additional stockholder value.”


Monday, August 14, 2023

Research

Fitlife Brands Inc (OTC:FTLF) ($17.97; $79.8M market cap), a manufacturer and marketer nutritional supplements for health conscious consumers in the United States and internationally, announced Q2 2023 results:

  • Sales of $14.8 million vs $7.8 million in the prior year
  • Non-GAAP EPS of $0.46 vs EPS of $0.33 in the prior year

“I am pleased with the Company’s performance.  In particular, the integration of MRC has been encouraging and we are quickly achieving the anticipated benefits of the acquisition.  With regard to the Legacy FitLife business, although wholesale traffic is down, we remain encouraged by the continued growth of our online business.  And given the success of our acquisition strategy thus far, we continue to pursue other possible transactions that we believe will be materially accretive to our shareholders.”


Tuesday, May 16, 2023

Research

Fitlife Brands Inc (OTC:FTLF) ($17.00; $76.4M market cap), a manufacturer and marketer nutritional supplements for health conscious consumers in the United States and internationally, announced Q1 2023 results:

  • Sales of $10.7 million vs $7.2 million in the prior year
  • Non-GAAP EPS of $0.31 vs EPS of $0.26 in the prior year

“I am excited about the future potential for the FitLife and MRC businesses.  The combined business performed well during the first quarter, and we are making great progress on a number of initiatives to drive improvement in revenue and gross margins as well as reductions in SG&A and the effective tax rate.  Presently, although wholesale traffic is somewhat challenged, we continue to see strong growth in our online business.”


Wednesday, March 1, 2023

Research

Fitlife Brands Inc (OTC:FTLF) ($19.00; $86.3M market cap), manufactures and markets nutritional supplements for health conscious consumers in the United States and internationally announced it has completed the acquisition of Mimi’s Rock Corp. 

“Transformative acquisition will double the size of FitLife with minimal leverage and no dilution to shareholders”

“We are excited to welcome Mimi’s Rock to the FitLife family.  We look forward to working closely with the talented team at Mimi’s Rock to help drive further growth and profitability for their brands.”

On December 5, 2022 we highlighted that the company had entered into a definitive agreement with Mimi Rock. 


Friday, November 11, 2022

Research

Fitlife Brands Inc (OTC:FTLF) ($16.00; $72.8M market cap), manufactures and markets nutritional supplements for health conscious consumers in the United States and internationally announced Q3 2022 results:

  • Sales of $8.3 million vs $6.7 million in the prior year
  • EPS of $0.24 vs EPS of $0.23 in the prior year

“Management expects the Company’s wholesale revenue trends to remain lumpy based on the ordering patterns of our customers. As a result, we encourage investors to evaluate revenue trends for the wholesale channel over periods of two or more quarters. Growth in consumer purchases of the Company’s products in the wholesale channel, which tends to be a more stable indicator of demand, was positive during the third quarter, and remains positive thus far in the fourth quarter.

Despite a somewhat challenging operating environment, I am encouraged by the continued growth in our wholesale and online businesses. We continue to actively pursue opportunities to deploy our strong and growing cash balance into accretive acquisitions.”


Sunday, September 25, 2022

Research

Fitlife Brands Inc (OTC:FTLF) is a manufacturer and marketer of nutritional supplements for health conscious consumers in the United States and internationally. The company issued an 8K with its restated financials for the periods of 2019 through June 2021. It is nice to see the company is making good progress to become current with its financials and commitment not to go dark.

Summary below:

  • 2019 - Previously reported sales of $19.5 mil restated to $19.1 mil with EPS of $2.41 restated to $2.33

  • 2020 - Previously reported sales of $19.5 mil restated to $19.1 mil with EPS of $2.41 restated to $2.33

  • First half 2021 - Previously reported sales of $14.2 mil restated to $14.0 mil with EPS of $2.69 restated to $2.57

Management's comments on becoming current:

“Immediately preceding the filing of the 2020 Form 10-K/A and the 2021 Form 10-K, management currently intends to withdraw its Form 15 filed with the Securities and Exchange Commission, and thereafter file its quarterly reports on Form 10-Q for the first two quarters of 2022.”


Wednesday, December 8, 2021

Research

Fitlife Brands Inc (OTC:FTLF) ($50.00; $56.2M market cap), a manufacturer and marketer of nutritional supplements for health conscious consumers in the United States and internationally, announced the board of directors has authorized a forward stock split of 4 for 1 to begin on December 8, 2021. 

You can see our prior coverage on FTLF here.


Tuesday, August 17, 2021

Research

Fitlife Brands Inc (OTC:FTLF) ($41.75; $45.7M market cap), manufactures and markets nutritional supplements for health conscious consumers in the United States and internationally announced Q2 2021 results:

  • Sales of $8.1 million vs $2.7 million in the prior year
  • EPS of $1.26 vs a loss of $0.09 in the prior year

“The second quarter of 2021 was one of the strongest quarters in the Company’s history. We continue to experience robust organic growth in both our wholesale and our online businesses. We have successfully integrated Nutrology into our operations, and we continue to look for opportunities to deploy our strong and growing cash balance into additional accretive acquisitions.”

You can see our prior coverage on FTLF here. The stock is now up ~202% since GeoInvesting research contributor, Avram Fisher, published his bullish thesis at a price of $13.80 in July 2016 and up over 600% since we published an RFT on the company in November 2018 at a price of $5.30.


Friday, May 14, 2021

Research

Fitlife Brands Inc (OTC:FTLF) ($38.0 prior close; $41.1M market cap), manufactures and markets nutritional supplements for health conscious consumers in the United States and internationally announced Q1 2021 results:

  • Sales of $6.2 million vs $6.2 million in the prior year
  • EPS of $1.56 vs $1.43 in the prior year

For the first quarter ended March 31, 2021, total revenue was approximately flat at $6.2 million. As previously mentioned, the Company believes that a portion of the wholesale revenue that historically would have been received during the first quarter shifted into the fourth quarter of 2020. For the first quarter of 2021, online sales increased 89.2% to $1.6 million and accounted for approximately 26% of the Company’s total revenue compared to 14% during the first quarter of 2020.

Dayton Judd, the Company’s Chairman and CEO, commented, “I am pleased that we continue to experience organic growth in both our wholesale and our online businesses. And as our online revenue becomes a larger portion of our business, we benefit from higher margins, as evidenced by the 50% gross margins we achieved during the first quarter.”  

“Over the past several months, the global supply chain for nutritional supplement ingredients and packaging has become increasingly challenging. Production lead times for many of our products have increased from two months to as much as six months in some cases. In an effort to ensure our products stay in stock, we are placing orders much earlier than usual and carrying larger quantities of inventory. We will continue to adapt our operations as necessary to compete effectively in the current environment.”


Wednesday, April 14, 2021

Research

Fitlife Brands Inc (OTC:FTLF) ($32.00; $38.2M market cap), a company that manufactures and markets nutritional supplements for health conscious consumers in the United States and internationally, announced the acquisition of Nutrology, which caters to consumers who prioritize all-natural and plant-based nutritional supplements.  It is an all cash transaction and expected to be immediately accretive to earnings. Financial details have not yet been disclosed.


Monday, March 29, 2021

Research

Fitlife Brands Inc (OTC:FTLF) ($24.04 prior close; $37.1M market cap), manufactures and markets nutritional supplements for health conscious consumers in the United States and internationally announced Q4 2020 results:

  • Sales of $5.9 million vs $3.7 million in the prior year
  • Non-GAAP EPS of $1.17 vs $0.04 in the prior year

“The Company’s performance continues to exceed expectations in both our wholesale and direct-to-consumer channels.  As a result, the Company has been able to achieve strong revenue growth and profitability, and our balance sheet continues to strengthen, despite the effects of the COVID-19 pandemic and the bankruptcy of the Company’s largest customer during 2020.  The Company continues to search for opportunities to deploy cash for prudent, immediately accretive acquisitions.” 

FTLF's financial performance, along with other companies in the nutritional supplement and healthy lifestyle products industry has us excited to see Muscle Pharm Corp (NASDAQ:MSLP) 2020 Q4 financial results which are due out soon. You can read more about why we began covering MSLP here.


Monday, March 30, 2020

Research

Fitlife Brands Inc (OTC:FTLF) ($8.55; $7.9M market cap), manufactures and markets nutritional supplements for health conscious consumers in the United States and internationally announced Q4 2019 results:

  • Sales of $3.7 million vs $3.5 million in the prior year
  • EPS of $0.33 vs a loss of $0.28 in the prior year

“By all accounts, the Company’s performance during 2019 was solid.  We have returned to growth in old channels and continued growth in new channels, all while reducing operating expenses and improving the balance sheet.  That said, the current economic environment is expected to materially impact the Company’s brick and mortar wholesale customers. In light of the uncertainty and in order to preserve its financial flexibility, the Company elected to draw the full $2.5 million available under its line of credit.”

FTLF remains a small long position.


Monday, November 11, 2019

Research

Fitlife Brands Inc (OTC:FTLF) ($10.11; $10.2M market cap), manufactures and markets nutritional supplements for health conscious consumers in the United States and internationally, announced Q3 2019 results:

  • Sales of $5.3 million vs $4.6 million in the prior year

  • EPS of $0.72 vs $0.31 in the prior year

“I continue to be pleased with the Company’s performance.  After many quarters of decline, the Company’s wholesale business returned to growth with GNC as well as with other wholesale partners.  And we are excited about the launch of our liquid L-Carnitine product in 3,700 Walmart stores throughout the US. In addition, we continue to experience growth in online revenue, and recently launched new online-exclusive products during the fourth quarter.

Mr. Judd continued, “Going forward, we intend to focus on driving continued organic growth.  In addition, given our improved performance and strong balance sheet, the Company intends to explore opportunities to grow through prudent acquisitions.  And, the Company intends to continue to repurchase shares as long as they remain an attractive investment option.”


Thursday, October 8, 2009

Comments & Business Outlook

John S. Wilson, CEO of Bond Laboratories Inc., added, “NDS is on pace in 2009 to significantly exceed prior year financial performance and anticipates strong revenue and profitability growth through 2010 driven by continued efforts to reduce costs, expand distribution capabilities, and develop market leading products.

Source: Business Wire (October 7, 2009)