Financial Data and Key Metrics Changes - For the full year 2024, total revenue increased by 22% year over year to $64.5 million, with online sales growing by 29% and representing 67% of total revenue [3] - Gross profit increased by 31%, and gross margin expanded from 40.7% to 43.6% [3] - Net income rose by 70% to $9 million, with basic EPS increasing by 66% to $0.98 and fully diluted EPS increasing by 69% to $0.91 [3] - Adjusted EBITDA for the full year increased by 39% to $14.1 million [4] - For Q4 2024, total revenue increased by 13% to $15 million, with online revenue increasing by 12% to $10.1 million [4] Business Line Data and Key Metrics Changes - Legacy Fitlife revenue for Q4 2024 was $5.3 million, with a 20% decline in wholesale revenue and a 1% decline in online revenue, totaling a 13% decline [5][6] - MRC revenue for Q4 2024 was $6.9 million, down slightly by 0.4% year over year, but gross margin increased from 40.4% to 48.7% [9][10] - MusclePharm revenue for Q4 2024 was the strongest since acquisition, with total revenue increasing by 14% sequentially, driven by a 37% increase in wholesale revenue [13][14] Market Data and Key Metrics Changes - The company expects MRC online revenue to decline by 10-13% in Q1 2025 due to tough year-over-year comparisons [11] - The first quarter of 2025 is anticipated to see a consolidated revenue decline of 4% to 6% compared to Q1 2024, primarily due to MRC's performance [18] Company Strategy and Development Direction - The company is focused on increasing promotional spending to drive sales growth, particularly for MusclePharm, while managing gross margins [14][45] - The company is actively evaluating M&A opportunities, prioritizing larger transactions while maintaining a strong balance sheet [19][55] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q1 2025, expecting strong performance for legacy Fitlife despite challenges in Q4 2024 [8] - The company is taking steps to mitigate tariff impacts by exploring alternative sourcing options, particularly from India [24][28] - Management noted that while there is uncertainty in the market, they are seeing an uptick in deal flow, particularly from over-leveraged companies [60] Other Important Information - The company completed a two-for-one forward stock split on February 7, 2025, with all per-share amounts adjusted retroactively [3] - The balance sheet remains strong, with net debt at $8.6 million, equivalent to 0.6 times the company's LTM adjusted EBITDA [4][19] Q&A Session Summary Question: What is the potential tariff impact and sourcing from China? - The company does not source products from China but is assessing where manufacturers obtain ingredients, with India emerging as a promising alternative [22][24] Question: What are the dynamics affecting MRC's performance? - The decline in MRC revenue is attributed to tough year-over-year comparisons and changes in customer purchasing behavior [29][30] Question: What are the expectations for MusclePharm's ramp-up throughout the year? - The company is optimistic about MusclePharm's growth potential, particularly with new product launches and rebranding efforts [39][42] Question: Can gross margins be increased? - Gross margins could be increased by stopping promotional spending, but the focus is on growth rather than immediate margin improvement [71][73] Question: What is the company's approach to promotional expenses? - Promotional expenses are used to incentivize retailers to promote products, and the company can adjust these as needed based on performance [45][51]

Financial Data and Key Metrics Changes - For the full year 2024, total revenue increased by 22% year over year to $64.5 million, with online sales growing by 29% and representing 67% of total revenue [3][4] - Gross profit increased by 31%, and gross margin expanded from 40.7% to 43.6% [3] - Net income rose by 70% to $9 million, with basic EPS increasing by 66% to $0.98 and fully diluted EPS increasing by 69% to $0.91 [3] - Adjusted EBITDA for the full year increased by 39% to $14.1 million [4] - For Q4 2024, total revenue increased by 13% to $15 million, with online revenue increasing by 12% to $10.1 million [4] Business Line Data and Key Metrics Changes - Legacy Fitlife revenue for Q4 2024 was $5.3 million, with a 20% decline in wholesale revenue and a 1% decline in online revenue, totaling a 13% decline [5][6] - MRC revenue for Q4 2024 was $6.9 million, down slightly by 0.4% year over year, but gross margin increased from 40.4% to 48.7% [9][10] - MusclePharm revenue for Q4 2024 was the strongest since acquisition, with total revenue increasing by 14% sequentially, driven by a 37% increase in wholesale revenue [13][14] Market Data and Key Metrics Changes - The company expects MRC online revenue to decline by 10-13% in Q1 2025 due to tough year-over-year comparisons [11] - The first quarter of 2025 is anticipated to see a consolidated revenue decline of 4% to 6% compared to the first quarter of 2024 [18] Company Strategy and Development Direction - The company is focused on transitioning to direct fulfillment for GNC franchisees after resolving a commercial dispute [8] - There is an ongoing effort to optimize the skincare brands acquired in the MRC transaction, which had unprofitable revenue [10] - The company is actively evaluating M&A opportunities, prioritizing larger transactions while maintaining a strong balance sheet [19][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for Q1 2025, expecting strong performance for legacy Fitlife despite challenges in wholesale [9] - The company is taking proactive steps to mitigate potential tariff impacts by sourcing ingredients from alternative suppliers [24][28] - Management noted that while there is uncertainty in the market, they are seeing an uptick in deal flow, particularly from over-leveraged companies [60] Other Important Information - The company completed a two-for-one forward stock split on February 7, 2025, with all per-share amounts adjusted retroactively [3] - The balance sheet remains strong, with net debt at $8.6 million, equivalent to 0.6 times the company's LTM adjusted EBITDA [4][19] Q&A Session Summary Question: What is the potential tariff impact and sourcing from China? - The company does not source products from China but is assessing where manufacturers obtain ingredients, with India emerging as a promising alternative [22][24] Question: What are the dynamics affecting MRC business? - The decline in MRC revenue is attributed to tough year-over-year comparisons and changes in customer purchasing behavior [29][34] Question: What are the expectations for MusclePharm's ramp-up? - The company is optimistic about MusclePharm's growth potential but cannot provide specific numbers at this time [39][42] Question: How does promotional spending affect gross margins? - Promotional spending is typical in the industry and is accounted for as a reduction in gross revenue, impacting reported gross margins [45][49] Question: What is the company's approach to M&A targets? - The company is looking for larger M&A opportunities and can leverage its strong balance sheet to finance acquisitions [56][60] Question: What were MusclePharm's peak sales and future potential? - MusclePharm's peak revenue was over $175 million, and the company aims to recover a significant portion of that in the future [63][66]

Acquisitions - FitLife Brands acquired MusclePharm on October 10, 2023, enhancing its portfolio of nutritional supplements and wellness products[21]. - The Company completed the acquisition of Mimi's Rock Corp. on February 28, 2023, and the acquisition of substantially all assets of MusclePharm on October 10, 2023[97]. - The Company acquired Mimi's Rock Corp. on February 28, 2023, and MusclePharm on October 10, 2023, expanding its product offerings significantly[127]. Product Development and Launches - The company launched a total of 23 new products in 2024, including 19 completely new products and 4 reformulations, while 18 new products were introduced in 2023[24]. - FitLife Brands' marketing strategy includes social media campaigns and online advertising to build brand awareness and drive sales[30]. - The Company continues to reformulate and introduce new products while expanding its e-commerce capabilities to drive incremental sales[162]. - MusclePharm launched the new Pro Series in a pilot program in mid-March 2025, targeting high-volume Vitamin Shoppe stores[185]. Sales and Revenue - Revenue for the year ended December 31, 2024 increased 22% to $64,469 million compared to $52,700 million for the year ended December 31, 2023[158]. - Online revenue accounted for approximately 67% of total revenue for the year ended December 31, 2024, up from roughly 63% in 2023[150]. - MRC revenue for the year ended December 31, 2024 was $29,036 million, with MusclePharm generating $10,046 million in revenue[160]. - FitLife Consolidated's total revenue for Q4 2024 was $15,013 million, a 13% increase compared to Q4 2023, with gross profit rising by 16%[187]. Financial Performance - Gross profit for the year ended December 31, 2024 increased 31% to $28,080 million from $21,432 million in the previous year[164]. - Net income for the year ended December 31, 2024 was $8,984 million, a 70% increase compared to $5,296 million for the year ended December 31, 2023[169]. - The company's adjusted EBITDA for 2024 was $14,125 million, up from $10,179 million in 2023[192]. - As of December 31, 2024, the Company had positive working capital of $6,832 million, an increase from $4,356 million at the end of 2023[193]. Market and Competition - The company operates in a highly competitive nutrition industry, differentiating its products based on quality and functional ingredients[33]. - The company faces significant competition in the nutritional supplements market, with competitors often offering a wider range of products and more competitive pricing[50]. - The nutritional supplement industry has been growing, but a slower growth rate could lead to reduced revenue and challenges in sustaining consistent growth[70]. Regulatory Compliance and Risks - The company is committed to regulatory compliance across various authorities, including the FDA and FTC, to ensure product safety and accurate marketing[34][40]. - Legal and regulatory risks could lead to significant compliance costs and negatively impact the marketing of the company's products[90]. - Certain products are subject to heightened regulatory scrutiny, resulting in increased operational costs and potential delays in product sales[92]. Debt and Financial Obligations - As of December 31, 2024, the company had approximately $13.0 million in total debt, with potential for additional indebtedness to fund future acquisitions[80]. - The company’s ability to meet debt service obligations will depend on future performance, which is influenced by various external factors[81]. - Rising interest rates may increase the cost of servicing debt, negatively affecting profitability and cash flows[87]. - The Company amended the Line of Credit Agreement to increase the Line of Credit to $3.5 million and extended the maturity date to December 23, 2023[195]. Operational Efficiency - The company relies on third-party manufacturers for product supply, which could lead to product recalls and reduced revenue if errors occur[91]. - The company is currently dependent on a limited number of independent suppliers and manufacturers, which may affect timely product deliveries and revenue[66]. - The company has never paid cash dividends on its Common Stock and does not anticipate paying any cash dividends in the foreseeable future[103]. Employee and Workforce - As of December 31, 2024, the company had 39 full-time employees, an increase from 37 in 2023[45]. Stock Performance - The closing price of the company's Common Stock ranged from a high of $17.50 to a low of $9.60 during the year ending December 31, 2024[100]. - The high and low closing prices for Common Stock in Q2 2024 were $17.50 and $12.25, respectively, indicating a price increase of approximately 103% from Q1 2024[117]. - The Share Repurchase Program allows the Company to repurchase up to $5,000,000 of Common Stock over the subsequent 24 months, with no shares repurchased during the year ended December 31, 2024[120][119].

FitLife Brands Inc. (FTLF) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price.The earnings report, which is expected to be released on March 27, 2025, might help the stock move higher if these key numbers are bett ...

Financial Results - FitLife Brands, Inc. announced preliminary financial results for the fiscal year ended December 31, 2024[5]. - The financial results include key metrics that will be elaborated in the attached press release[5]. Corporate Communications - The company issued a press release on March 13, 2025, detailing its financial performance[5]. - A new corporate presentation was introduced for business purposes on the same date[6]. - The press release and corporate presentation are attached as Exhibits 99.1 and 99.2, respectively[8]. Company Information - The company is registered under the trading symbol FTLF on the Nasdaq Capital Market[3]. - FitLife Brands, Inc. has not elected to use the extended transition period for new financial accounting standards[4]. - The company is not classified as an emerging growth company[3]. - The company’s headquarters is located in Omaha, Nebraska[2]. - The report was signed by CEO Dayton Judd on March 13, 2025[12].

Core Viewpoint - FitLife Brands, Inc. is set to participate in the 37th Annual Roth Conference on March 17-18, 2025, and will provide an updated investor presentation prior to the event [1][2]. Financial Performance Update - The company plans to report its financial performance for Q4 and the full year of 2024 on March 27, 2025, and has provided preliminary financial and operational updates [3]. - Anticipated net revenue for the full year 2024 is projected to be between $64-65 million, reflecting a 21-23% increase compared to 2023 [7]. - Adjusted EBITDA for the full year 2024 is expected to be between $14.0-14.2 million, indicating a 38-40% increase compared to 2023 [7]. - Projected net income for the full year 2024 is estimated to be between $8.9-9.1 million, representing a 68-72% increase compared to 2023 [7]. - As of December 31, 2024, the company had $13.1 million outstanding on its term loan and no balance on its revolver, with $4.5 million in cash [7]. - The number of shares outstanding as of March 12, 2025, was 9,218,528 [7]. Company Overview - FitLife Brands is a developer and marketer of innovative nutritional supplements and wellness products, offering over 250 products primarily online and through various retail locations, including GNC® franchises [3].

Core Viewpoint - FitLife Brands, Inc. is set to report its financial performance for Q4 and the full year of fiscal 2024 on March 27, 2025 [1]. Company Overview - FitLife Brands is a developer and marketer of innovative and proprietary nutritional supplements and wellness products aimed at health-conscious consumers [3]. - The company offers over 250 different products, primarily marketed online, but also available through domestic and international GNC® franchise locations and various retail outlets [3]. - FitLife Brands is headquartered in Omaha, Nebraska [3].

Core Insights - The investment philosophy emphasizes avoiding errors of commission in favor of errors of omission, as the latter are less costly [1] - The focus is on identifying clear and obvious investment opportunities that warrant significant portfolio allocation, typically 5-10% or more [1] - The approach suggests that smaller investments may not justify the effort, advocating for index fund investments instead [1] Investment Strategy - The strategy involves a concentrated investment approach, seeking opportunities that are strikingly apparent and compelling [1] - The intention is to issue fewer buy recommendations, making those that are suggested more significant [1] - The investment process includes a continuous learning aspect from the investment community, indicating a collaborative approach to investment decisions [1]

Core Viewpoint - FitLife Brands, Inc. announced a 2-for-1 forward stock split to enhance trading volumes and make the stock more accessible to a broader range of investors, reflecting confidence in the company's future [1][3]. Group 1: Stock Split Details - The forward stock split will take effect on February 7, 2025, changing the CUSIP number to 33817P405 [1]. - Prior to the split, there were 4,605,108 shares outstanding, which will increase to 9,210,216 shares post-split [2]. - The stock split does not affect stockholders' percentage ownership or voting power [2]. Group 2: Company Overview - FitLife Brands is a developer and marketer of nutritional supplements and wellness products, offering over 250 products primarily online and through GNC® franchise locations [3]. - The company is headquartered in Omaha, Nebraska, and targets health-conscious consumers [3].

Financial Performance - Total revenue for Q3 2024 was $16.0 million, a 15% increase compared to $13.9 million in Q3 2023[1][4]. - Online sales reached $10.8 million, accounting for 68% of total revenue, and increased by 14% year-over-year[2][4]. - Gross margin improved to 43.8% from 41.0% in Q3 2023[2][26]. - Net income for Q3 2024 was $2.1 million, up from $1.7 million in the same quarter last year[2][6]. - Adjusted EBITDA was $3.6 million, representing a 41% increase compared to Q3 2023[3][7]. - Wholesale revenue for Q3 2024 was $5.2 million, a 16% increase year-over-year, with acquisitions contributing $1.3 million[5][26]. - Revenue for the three months ended September 30, 2024, was $15.977 million, a 15% increase from $13.902 million in the same period of 2023[37]. - Gross profit for the nine months ended September 30, 2024, was $21.868 million, up 36% from $16.069 million in the same period of 2023[37]. - Operating income for the three months ended September 30, 2024, was $3.182 million, compared to $2.470 million in the same period of 2023, reflecting a 29% increase[37]. - Net income for the nine months ended September 30, 2024, was $6.914 million, a 81% increase from $3.816 million in the same period of 2023[37]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $11,068,000, compared to $7,840,000 for the same period in 2023, reflecting a growth of 41%[42]. Cash Flow and Assets - Net cash provided by operating activities for the nine months ended September 30, 2024, was $8,653,000, up from $2,772,000 in 2023, indicating a significant improvement[38]. - Cash paid for income taxes increased to $1,105,000 for the nine months ended September 30, 2024, from $593,000 in 2023[38]. - The company reported a net cash used in investing activities of $(10,000) for the nine months ended September 30, 2024, compared to $(18,984,000) in 2023, showing a reduction in cash outflow[38]. - Cash and restricted cash at the end of the period was $4,720,000, down from $8,312,000 at the end of September 30, 2023[38]. - The foreign currency impact on cash was $54,000 for the nine months ended September 30, 2024, compared to a loss of $(3,000) in 2023[38]. - The company reported a decrease in inventories, with a change of $(1,223,000) for the nine months ended September 30, 2024, compared to an increase of $2,534,000 in 2023[38]. Debt and Liabilities - The company's net debt is approximately 0.7x adjusted LTM EBITDA, with $22.5 million borrowed for MRC and MusclePharm asset purchases, and $9.5 million remaining outstanding[31]. - Total current assets increased to $18.099 million as of September 30, 2024, from $14.693 million at the end of 2023[36]. - Total liabilities decreased to $24.429 million as of September 30, 2024, from $28.310 million at the end of 2023[36]. - The company had borrowings on term loans of $12,500,000 in the previous year, with payments on term loans amounting to $(5,875,000) in 2024[38]. Business Developments - The Company is launching the new MusclePharm Pro Series in early 2025, initially in select Vitamin Shoppe stores[23][24]. - MusclePharm Combat Sport bars and the new MusclePharm Pro Series have shown recent wins, indicating brand growth[30]. - The company continues to evaluate potential M&A opportunities, focusing on accretive, non-dilutive transactions[31]. - The MRC brands' contribution over the last twelve months was approximately $9.4 million, favorably comparing to the $17.1 million acquisition price[27]. Upcoming Events - The company will hold an investor conference call on November 14, 2024, to discuss financial results and future outlook[32]. Compensation and Expenses - The company incurred stock-based compensation of $344,000 for the nine months ended September 30, 2024, compared to $94,000 in 2023, indicating increased compensation expenses[38].