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].

Financial Performance - Revenue for Q3 2024 reached $15,977,000, a 15% increase from $13,902,000 in Q3 2023[7] - Gross profit for Q3 2024 was $7,001,000, up 23% from $5,696,000 in Q3 2023[7] - Operating income for Q3 2024 increased to $3,182,000, compared to $2,470,000 in Q3 2023, reflecting a 29% growth[7] - Net income for Q3 2024 was $2,126,000, a 25% increase from $1,696,000 in Q3 2023[7] - Basic net income per share for Q3 2024 was $0.46, up from $0.38 in Q3 2023, representing a 21% increase[7] - Comprehensive income for Q3 2024 was $2,161,000, compared to $1,378,000 in Q3 2023, reflecting a 57% increase[7] - Net income for the nine months ended September 30, 2024, was $6,914,000, compared to $3,816,000 for the same period in 2023, representing an increase of 81.5%[13] Operating Expenses - Total operating expenses for Q3 2024 were $3,819,000, compared to $3,226,000 in Q3 2023, an increase of 18%[7] - Advertising and marketing expenses decreased to $1,093,000 in Q3 2024 from $1,275,000 in Q3 2023, a reduction of 14%[7] - Stock-based compensation for the nine months ended September 30, 2024, was $344,000, compared to $94,000 in 2023, reflecting increased compensation expenses[13] - The Company recognized stock-based compensation of $141 million for the three months ended September 30, 2024, compared to $21 million for the same period in 2023, indicating a significant increase[78] Cash Flow and Assets - 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 in cash flow[13] - Total cash and restricted cash at the end of the period on September 30, 2024, was $4,720,000, compared to $8,312,000 at the end of the same period in 2023[13] - The Company had total notes payable of $14,164 million as of September 30, 2024, down from $20,009 million as of December 31, 2023, a decrease of 29.5%[63] - The Company has approximately $56 million in short-term interest-earning accounts pledged as collateral for financing arrangements as of September 30, 2024[37] Revenue Sources - For the nine months ended September 30, 2024, revenue was $49,456,000, a 25% increase from $39,401,000 in the same period of 2023[7] - Online revenue accounted for approximately 68% of net revenue for the three months ended September 30, 2024 and 2023, compared to 32% for the wholesale channel[28] - Sales to customers in the U.S. represented approximately 95% and 93% of total sales during the three months ended September 30, 2024 and 2023, respectively[30] - Net sales to GNC accounted for 23% and 30% of total net revenue for the three-month periods ended September 30, 2024 and 2023, respectively[35] Inventory and Obsolescence - The total allowance for obsolescence for inventory items as of September 30, 2024, was $86 million, down from $162 million as of December 31, 2023, indicating a 46.3% reduction[59] - The Company's total inventory as of September 30, 2024, was $10,371 million, an increase from $9,091 million as of December 31, 2023, representing a 14.1% rise[59] Acquisitions and Investments - The company incurred $17,099,000 for the acquisition of Mimi's Rock Corp. during the nine months ended September 30, 2023[13] - The acquisition of Mimi's Rock Corp. was completed for a purchase price of $17.1 million, with recorded intangible assets of $7.63 million and goodwill of $12.76 million[79][80] - The Company acquired assets from MusclePharm for a total consideration of $18.79 million, including legal expenses, focusing on indefinite life intellectual property valued at $18.59 million[85][86] - The Company expects to achieve future synergies from the MRC acquisition, enhancing its product offerings in the nutritional supplement and wellness business[81] Tax and Compliance - The effective income tax rate was 25% for the nine months ended September 30, 2024, down from 28% for the same period in 2023[44] - The Company has determined no indicators of impairment for goodwill as of September 30, 2024[41] Financial Structure - The Company entered into a Second Amended and Restated Credit Agreement on October 10, 2023, which included an additional Term Loan B of $10,000 million[65] - As of September 30, 2024, the Company had $14.25 million outstanding on its Term Loans and no balance under its Line of Credit[172] Foreign Currency Impact - The company reported a foreign currency translation adjustment of $35,000 in Q3 2024, compared to a loss of $318,000 in Q3 2023[7] - The company experienced a foreign currency impact on cash of $54,000 for the nine months ended September 30, 2024, compared to a negative impact of $3,000 in 2023[13] - The Company entered into a foreign currency hedging transaction to purchase CAD $25 million to mitigate risks associated with the acquisition of MRC[171]

Core Viewpoint - FitLife Brands, Inc. is set to report its financial performance for Q3 of fiscal 2024 on November 14, 2024, indicating a focus on transparency and communication with investors [1]. Group 1: Financial Reporting - The company will announce its financial results for the third quarter of fiscal 2024 on November 14, 2024 [1]. - An investor conference call is scheduled for the same day at 4:30 pm ET, allowing investors to engage directly with the company's financial updates [2]. Group 2: Company Overview - FitLife Brands is a developer and marketer of innovative nutritional supplements and wellness products, catering to health-conscious consumers [3]. - The company offers over 250 different products, primarily marketed online and through GNC® franchise locations, as well as various retail outlets [3]. - FitLife Brands is headquartered in Omaha, Nebraska, emphasizing its operational base in the U.S. [3].

Company Overview - FitLife Brands Inc. (FTLF) shares increased by 5.7% to close at $32.25, following a notable trading volume, contrasting with an 8.9% loss over the past four weeks [1] - The company has achieved a year-to-date return of 65.5%, indicating strong market sentiment and consistent profitability and revenue growth in 2024 [1] Financial Performance - FitLife is expected to report quarterly earnings of $0.50 per share, reflecting a year-over-year increase of 42.9% [1] - Revenue projections for the upcoming report stand at $16.95 million, which is a 21.9% increase compared to the same quarter last year [1] Market Sentiment and Stock Trends - The consensus EPS estimate for FitLife has remained unchanged over the last 30 days, suggesting that stock price movements may stabilize without revisions in earnings estimates [2] - The stock currently holds a Zacks Rank of 3 (Hold), indicating a neutral outlook [2] Industry Comparison - FitLife Brands is part of the Zacks Medical - Products industry, where BioRad Laboratories (BIO) experienced a 1% decline to $339.84, with a 5.1% return over the past month [2] - BioRad's consensus EPS estimate has decreased by 0.4% to $1.28, representing a significant year-over-year decline of 45.1%, and it currently holds a Zacks Rank of 4 (Sell) [3]

Core Insights - FitLife Brands (NASDAQ: FTLF) has been undergoing a turnaround since the appointment of CEO Dayton Judd, who has implemented successful cost-saving strategies [1] Company Overview - The company is managed by a hedge fund with a value philosophy, indicating a focus on long-term fundamentals and cost efficiency [1] Investment Philosophy - The investment approach emphasizes quality-growth companies that can provide approximately a 15% return over the next five years, with a focus on sustained top-line growth, profitability, a healthy balance sheet, free cash flow generation, high return on capital employed (ROCE), and attractive market potential [1]

Zacks recently upgraded 2 small caps from Neutral to Outperform based on recent strategy execution by these companies which appears sustainable. Fitlife Brands, Inc. (FTLF) is a provider of nutritional supplements serving the wellness and fitness markets. With a market cap of $153 m, Fitlife Brands, Inc. has $59 m of TTM sales. In Q2 Fitlife Brands (FTLF) grew revenue 14.7% YOY while adj. EBITDA grew 29%. Gross Margin increased 480 bps YOY to 44.8% as higher margin online sales now comprise nearly two-third ...

Financial Data and Key Metrics Changes - Total revenue for Q2 2024 increased by 15% year-over-year, with wholesale revenue up 18% and online revenue up 13% [4] - Gross profit increased by 27%, and gross margin expanded from 41.9% to 44.8% [4] - Contribution increased by 39%, driven by the addition of MusclePharm and gross margin expansion [4] - Net income rose by 34%, with basic earnings per share increasing by 30% and fully diluted earnings per share increasing by 33% [4] - Adjusted EBITDA for Q2 2024 increased by 29% to $3.8 million, bringing LTM adjusted EBITDA to $12.4 million [5][14] Business Line Data and Key Metrics Changes - Legacy FitLife revenue for Q2 2024 was $6.8 million, with 62% from wholesale and 38% from online sales, representing a 10% decline in wholesale revenue and a 7% increase in online revenue [5][6] - MRC revenue for Q2 2024 was $7.5 million, with a 2% year-over-year decline; Dr. Tobias brand revenue increased by 4%, while skin care brands revenue decreased by 37% [7][8] - MusclePharm revenue was approximately $2.7 million for Q2 2024, with a sequential increase of 27% from Q1 2024 [10][11] Market Data and Key Metrics Changes - Approximately two-thirds of total revenue now comes from online sales, a significant increase from less than 1% in 2018 [12] - Amazon subscribers for MRC products grew by 5% year-over-year, with Dr. Tobias subscribers increasing by approximately 8% [9][10] Company Strategy and Development Direction - The company aims to consolidate within the supplement industry, focusing on acquiring brands at attractive multiples [18] - The management plans to continue investing in growth through promotional offers and increased advertising [16][17] - The company expects to deliver double-digit year-over-year revenue growth for the remainder of 2024 [13] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the ongoing dialogue with potential wholesale partners for MusclePharm, indicating positive trends in customer engagement [20][21] - The company is focused on reducing net debt, which decreased by 36% during the first half of 2024 [14] Other Important Information - The company has a strong balance sheet with $15.4 million of term loan outstanding and no balance on its revolver [14] - The company surpassed over 100,000 subscribers on Amazon, indicating a significant milestone in customer acquisition [13] Q&A Session Summary Question: What are the goals management has for the company in five to ten years? - Management believes the biggest opportunity lies in consolidating within the supplement industry and is actively looking at potential acquisitions [18] Question: Will share buybacks be reinitiated? - Currently, the best use of capital is seen as acquiring other brands, with share buybacks considered only if there is a significant pullback in stock [16][17] Question: Is a dividend being considered? - Similar to share buybacks, dividends are not currently prioritized, with a focus on M&A instead [16][17] Question: What revenue can be expected from MusclePharm when it levels out? - Management is reluctant to provide specific revenue estimates but expects to double the run rate in the next 12 months [16]

FitLife Brands, Inc. (FTLF) reported earnings per share of 53 cents in the second quarter of 2024, which increased 32.5% from the year-ago figure of 40 cents. Revenues in Detail FitLife Brands registered revenues of $16.9 million in the second quarter, up 14.7% year over year. The revenue uptick primarily resulted from the acquisition of the MusclePharm assets, which were acquired in October 2023. However, this was partially offset by a decline in legacy FitLife revenues. Online revenues were 66% of net rev ...

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 of 15% compared to the second quarter of 2023. Online sales were $11.2 million, representing 66% of total revenue and an increase o ...

Small-cap stocks have gotten a bad rap lately, and I get it. Most of them have severely underperformed the broader market rally we've seen. Sky-high interest rates have crushed the growth prospects for many of these fledgling companies. And let's be real. A lot of small-caps are unprofitable anyway, so why even bother investing in them? Well, I respectfully disagree with that sentiment. Painting all small-cap stocks with the same broad brush is a mistake, in my view. Many of today's most successful large-ca ...