MUSCLE PHARM CORP (MSLPQ) research, news, and more from GeoInvesting

Company description

Fri, 15 Jan 2021 17:57:41 GMT

MusclePharm Corporation is a US-based performance lifestyle company. It develops, manufactures, markets and distributes branded nutritional supplements. It offers various types of powders, capsules, tablets and gels. Geographically, the firm has its business presence across the region of US and in the international market of which the US accounts for the majority of revenue. The company's MusclePharm Hybrid series products include Assault, Amino1, and Combat Protein Powder; and MusclePharm Core products comprise BCAA 3:1:2, CLA Core, and Fish Oil. The group sells its products to various fitness enthusiasts, such as professional, combat sport, weight training, bodybuilding, running, and various team and individual sports, and others.

Research

Mon, 18 Apr 2022 11:47:42 GMT

Muscle Pharm Corp (NASDAQ:MSLP) a global provider of leading sports nutrition & lifestyle branded nutritional supplements announced Q4 2021 results:

$10.0 million vs $15.1 million in the prior year
Loss per share of $0.20 vs EPS of $0.03

“Sales and margins in the fourth quarter and full year 2021 were impacted by industry wide supply chain shortages; however, our continued focus on operating expense reduction helped to mitigate and we were able to deliver $50.0 million in revenue for the full year. I am incredibly proud of the team and we are on track to delivery sequential growth in sales in the second quarter of 2022. We believe we have the right team and offerings in place to deliver significant long-term growth.”

Back in early March, the company provided preliminary results for Q4 21 and Q1 22 where the company expects to report $13 to $15 million. The Company reiterated this guidance on the conference call and mentioned cost cutting measures have led to March being a cash flow positive month.

Research

Fri, 11 Mar 2022 15:08:53 GMT

Muscle Pharm Corp (NASDAQ:MSLP) ($0.35 $11.6M market cap), a global provider of leading sports nutrition & lifestyle branded nutritional supplements announced preliminary fourth quarter 2021 and fiscal Q1 2022 results:

Preliminary revenue for the fourth quarter 2021 will be approximately $9-10 million. A portion of revenue shifted from the fourth quarter 2021 to the first quarter of 2022 due to temporary industry wide supply chain and logistical delays.
The Company generated preliminary revenue for the full year of 2021 of $49-50 million
Well positioned to achieve revenue in the range of $13-$15 million revenue for the first quarter

“We are extremely well positioned for growth in 2022 due to many factors validated by our strong first quarter performance. Throughout 2021 our entire team worked extremely hard to position our company for long term growth by improving our infrastructure, expanding our management team, leveraging our brands for the energy drink category, reformulating select existing offerings and dramatically expanding our distribution channels with leading omni channel retailers.”

We recently removed MSLP from our Top 5 Faves Model Portfolio due to, as the company explained, the delays it experienced in 2021, resulting in what we felt to be a lower level of timeliness as an investment. However, the stock still remains in several other Model Portfolios while we continue to track its progress and achievements going forward.

Research

Thu, 03 Feb 2022 18:11:19 GMT

In yesterday’s Live Open Forum, a replay of which will be published today, we discussed the removal of Muscle Pharm Corp (NASDAQ:MSLP) from our Top 5 Favorites Model Portfolio and added Richardson Electronics, Ltd. (NASDAQ:RELL) in its place.

While MSLP continues to be a turnaround story and remains in our Select Long Disclosures Model Portfolio, we feel RELL is more timely and has the potential for strong top and bottom line growth for several years to come. Please see our recent Reasons for Tracking commentary for more color on the RELL story. MSLP announced distribution with AMZN which could accelerate the turnaround, see more below.

Muscle Pharm Corp (NASDAQ:MSLP) ($0.45 $14.9M market cap), a global provider of leading sports nutrition & lifestyle branded nutritional supplements, announced a partnership with Amazon.com to offer its recently launched fully functional energy drink line, MP Combat Energy. Amazon.com will initially feature three flavors, Green Apple, Grapefruit Lime and Black Cherry to its 200 Million Prime Members.

“The customer feedback and sell-thru of our recently launched energy drink line has exceeded our expectations and the addition of Amazon as our largest distributor will greatly strengthen our multi-channel expansion strategy. We have assembled a strong and growing beverage team of top industry veterans and are very confident their many years of experience have us well positioned for many years of strong growth.”

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Research

Tue, 16 Nov 2021 18:04:19 GMT

Muscle Pharm Corp (NASDAQ:MSLP) ($0.75 $25.1M market cap), a global provider of leading sports nutrition & lifestyle branded nutritional supplements, announced Q3 2021 results:

Sales of $11.9 million vs $16.0 million in the prior year
Loss per share of $0.12 vs EPS of $0.01

“Sales and margins in the third quarter were impacted by supply chain shortages which were mitigated by our continued focus on operating expense reduction...new product formulation, along with the continued production of the MP Energy drink line, is expected to drive sequential revenue growth in the fourth quarter of 2021. Also, as mentioned on our second quarter earnings call, we brought on T.J. Dillashaw for marketing and business development and have already seen a significant impact on our business through the formation of marketing partnerships that will support our expected fourth quarter revenue growth.

In addition, our recent $7.0 million senior secured notes offering has us well positioned to capture market share in the functional energy drink segment, and we believe we can grow the business to $30.0 million in annual sales starting in 2023.”

Conference call highlights:

“We made strategic operational decisions this quarter to set our company up for success and strong sales growth in the fourth quarter and subsequent year. This, combined with the supply chain shortages across our industry did, however, come at the expense of our top and bottom line in the third quarter.

We stand by our conviction that the functional energy drink market is a massive opportunity for MusclePharm, and we believe we can capture enough market share to grow the business to $30 million in annual sales starting in 2023. This, combined with our focus on growing the base business, sets us up for a strong fourth quarter and full year 2022 growth.”

Research

Mon, 18 Oct 2021 11:23:40 GMT

Muscle Pharm Corp (NASDAQ:MSLP), a global provider of leading sports nutrition & lifestyle brands, recently entered the energy drink market. The company has been highlighting pre-order momentum in its recent press releases, and the energy drinks are now available to purchase. On the negative side, the company announced a highly dilutive financing deal to combat liquidity issues due to supply chain gross margin pressure from escalating freight and elevated whey protein prices. However, proceeds will also be used to launch the company's new functional beverage product now listed on muscleandstrength.com.

Research

Tue, 17 Aug 2021 16:25:20 GMT

Muscle Pharm Corp (NASDAQ:MSLP) ($1.65 $55.2M market cap), a global provider of leading sports nutrition & lifestyle branded nutritional supplements announced Q2 2021 results:

Sales of $14.9 million vs $17 million in the prior year
Loss per share of $0.07 vs loss of $0.01

“I’m encouraged despite the headwinds affecting our industry, we were able to finish the second quarter with a 14% increase in net revenue over the first quarter of 2021. In the second quarter we experienced significant increases in protein prices affecting our industry which reduced our gross margins, however this was partially offset by a 15% reduction in operating expenses. With the strength of our brand and the restructuring we undertook two years ago, we are well positioned to return to profitability when the protein market normalizes.

We are excited to officially rollout MP Performance Energy drink later this month with our eight signed distributors. Initial reaction to this new line is very strong and we believe we have the leadership, network and brand name to achieve $30 million of MP and FitMiss Energy product sales in 2023 by expanding our leading brand into the energy beverage market. This is only the beginning for our Company’s expansion as we continue to unlock the long-term opportunity for MusclePharm.”

Research

Tue, 27 Jul 2021 16:53:54 GMT

Muscle Pharm Corp (NASDAQ:MSLP) ($1.59 $53.2M market cap), a global provider of leading sports nutrition & lifestyle branded nutritional supplements, announced it has closed a $7.3 million liability with the IRS.

“On April 4, 2017, MusclePharm received a letter from the IRS asserting back taxes and penalties of approximately $7.3 million dollars owed for the 2014 restricted stock grants. MusclePharm submitted a formal protest disputing the matter on several grounds and has been pursuing this matter vigorously through the IRS appeals process. On June 29, 2021, an IRS Appeals Officer confirmed that the tax matter had exceeded the applicable statute of limitations and was deemed closed from any further assessment by the IRS.”

See our article discussing why we feel the company is at an inflection point in its growth trajectory here.

Research

Tue, 25 May 2021 14:45:35 GMT

Muscle Pharm Corp (NASDAQ:MSLP) ($1.26 $34.3M market cap), a global provider of leading sports nutrition & lifestyle branded nutritional supplements, announced Q1 2021 results:

Sales of $13.1 million vs $16.2 million in the prior year
Net income of $90,000 vs loss of $60,000
EPS of $0.00 vs $0.00

The company is still in the very early stages of its turnaround strategy. Phase one of the growth strategy was to control costs and focus on selling higher margin products. Phase 2 is now in play, where the company will focus on growing revenue with higher margin products and entering new high growth product categories. We like these set-ups because even though sales are not growing yet, the company is starting to show profitability at lower revenue levels, meaning that once revenues begin to increase we can see a huge jump in earnings. However, MSLP still may not screen favorably because of the low revenue performance. This provides us with the opportunity to buy shares when others are ignoring the company. We remain extremely excited about this growth story.

“I am very pleased with our profitable quarter, despite the sales shortfall due to the temporary supply shortage affecting our industry. With March and April achieving sales increases over the prior year periods we have momentum going into the second quarter, which indicates the great strides we have made during the past year. We have some of the leading brands in the health and fitness industry and are proud to be leveraging the tremendous reach they offer by entering new categories such as energy beverages. With the rollout of three new energy beverages, in addition to tapping into the gender specific market with our popular FitMiss brand, we are very well positioned to capture a meaningful share of this rapidly growing market.”

"We have delivered positive profit for the last two quarters and it is a testament that the turnaround strategy we started two years ago to dramatically restructure MusclePharm and increase our focus on profitability is working. The expansion into the energy beverage market is only the beginning for our Company and I am optimistic we are in the very early stages of a tremendous long-term growth opportunity at MusclePharm,”

We encourage you to read the full conference call transcript which is very bullish in our opinion. One particular statement stands out:

“As I mentioned in the earnings release, we ended the quarter $3 million short in sales versus prior year. With the supply shortages easing we are seeing sales pick up in April and May, and we expect this trend to continue. We hope to have Q2 end with comparable sales to prior year."

The company has not had flat to improved sales on a year over year basis since Q2 2019

Research

Thu, 01 Apr 2021 16:24:21 GMT

*Model Portfolio Update

Yesterday we added Muscle Pharm Corp (NASDAQ:MSLP) to our Top 5 Favorite Model Portfolio, filling the spot left vacant by our removal of Tss Inc (NASDAQ:TSSI). The decision to add the company to this portfolio occurred after it reported record Q4 2020 results, setting the stage for long term profitable growth.

Research

Tue, 30 Mar 2021 15:17:17 GMT

Muscle Pharm Corp (NASDAQ:MSLP) ($0.64; $21.4M market cap), a global provider of leading sports nutrition & lifestyle branded nutritional supplements, announced Q4 2020 results:

$15.1 million vs $17.4 million in the prior year
EPS of $0.06 vs a loss of $0.11 in the prior year
Non-GAAP EPS of $0.04 vs loss $0.11 in the prior year

Despite 2020 being a challenging year due to Covid-19, we executed at the highest level achieving strong results by turning a profit for the first time in our Company's history. We reduced operating expenses by 29%, expanded our gross margins to over 30% and strategically expanded our omni-channel strategy by increasing penetration with our largest online customers. Our results this year are a testament to the turnaround strategy we set forth two years ago to dramatically restructure MusclePharm and increase our focus on profitability, and I'm incredibly proud of the hard work put forth by the entire MusclePharm team."

Mr. Drexler continued, "We have one of the strongest brands in the health and fitness industry and are very optimistic that we will continue to turnaround our business in 2021 by focusing on higher margin channels, offering customers products where they prefer to shop, improved cost containment and implementing additional pricing controls. Our Company is well known for providing superior products and we expect new distribution and brand expansion opportunities that will enable us to generate long-term profitable growth."

Recall, from the RFT (Reasons For Tracking) we recently published, the company is shifting its focus to sell higher margin products which could result in a flattening out of revenues in the short term, while positioning the company for significant profitable growth in the long run. Q4 EPS results indicate that we are beginning to see the fruits of this labor.

Research

Sun, 06 Dec 2020 05:00:00 GMT

Notable MSLP Commentary

“Our management team has spent the last two years dramatically restructuring MusclePharm and are now generating positive cash flow and well positioned for long-term profitable growth even in the current COVID-19 pandemic environment. The business turnaround was driven by reducing low margin sales into inefficient channels, increasing gross margins, decreasing operating expenses and improving our overall EBITDA. We have many of the leading brands in nutrition but we needed to do a much better job of realizing the value of our brands by reducing product discounts and being more efficient in our promotional activity, reducing SKU’s that are not properly positioned, and better aligning our operations with repositioned top-line growth. We have strengthened our scalable platform in 2020, with a focus on increased profitability. Our omni-channel strategy is working and enables us to capture a greater share of this large and growing space. We also believe we are very well positioned to utilize our leading brands to expand outside of the nutraceutical space in the near future.”