FitLife Brands(US:FTLF)2025-05-15 11:30Financial Performance - Total revenue for Q1 2025 was $15,936, a decrease of 3.7% from $16,549 in Q1 2024[14] - Gross profit for Q1 2025 was $6,874, down 5.7% from $7,287 in Q1 2024[14] - Operating income decreased to $2,958 in Q1 2025, compared to $3,381 in Q1 2024, reflecting a decline of 12.5%[14] - Net income for Q1 2025 was $2,018, a decrease of 6.6% from $2,160 in Q1 2024[14] - Revenue for the three months ended March 31, 2025 decreased 4% to $15,936 compared to $16,549 for the same period in 2024[94] - Gross profit for the three months ended March 31, 2025 decreased 6% to $6,874 compared to $7,287 for the same period in 2024[99] - Net income for the three months ended March 31, 2025 was $2,018, a decrease of 7% from $2,160 in the same period in 2024[103] - Total operating expenses for the three months ended March 31, 2025 were $3,916, slightly up from $3,906 in the same period in 2024[94] Cash Flow and Assets - Cash and cash equivalents increased to $5,941 as of March 31, 2025, up from $4,468 at the end of 2024[13] - Total assets rose to $62,193 as of March 31, 2025, compared to $58,531 at the end of 2024, marking an increase of 6.3%[13] - Total stockholders' equity increased to $38,918 as of March 31, 2025, up from $36,126 at the end of 2024, reflecting a growth of 7.7%[13] - Net cash provided by operating activities for Q1 2025 was $2,328, down from $5,036 in Q1 2024[19] - Cash provided by operating activities decreased to $2,328 for the three months ended March 31, 2025, down from $5,036 for the same period in 2024, primarily due to increases in working capital[134] - Cash used in financing activities decreased to $866 for the three months ended March 31, 2025, compared to $3,625 for the same period in 2024, mainly due to voluntary debt repayment[135] Inventory and Debt - As of March 31, 2025, the total inventory amounted to $12,131 million, an increase from $11,074 million as of December 31, 2024, with finished goods at $10,881 million and components at $1,326 million[63] - The total allowance for obsolescence for inventory items decreased to $76 million as of March 31, 2025, from $100 million as of December 31, 2024[63] - The Company’s total debt obligations decreased to $11,936 million as of March 31, 2025, down from $13,050 million as of December 31, 2024[65] - The outstanding balance on Term Loans was $12,000 million as of March 31, 2025, down from $13,125 million as of December 31, 2024[72] - The borrowings outstanding on the Term Loans as of March 31, 2025, were $12,000 million, with no outstanding balance on the Line of Credit[131] Revenue Sources and Trends - Online revenue accounted for approximately 67% of net revenue for the quarter ended March 31, 2025, compared to 65% in the same period of the prior year, indicating a growth in online sales[33] - Sales to customers in the U.S. remained stable at approximately 96% for both the three months ended March 31, 2025, and 2024[34] - Total net sales to GNC represented 16% of total revenue for the three months ended March 31, 2025, down from 25% in the same period of 2024[38] - MusclePharm revenue decreased 6% to $1,963 for the three months ended March 31, 2025, compared to $2,095 for the same period in 2024[97] - MRC revenue decreased 11% to $6,674 for the three months ended March 31, 2025, compared to $7,493 for the same period in 2024[96] - Legacy FitLife revenue increased 5% to $7,299 for the three months ended March 31, 2025, driven by an 11% increase in online revenue and a 2% increase in wholesale revenue[96] Marketing and Product Development - The Company continues to focus on expanding its product offerings and distribution channels, including e-commerce platforms[20] - The Company launched the new MusclePharm Pro Series in March 2025, targeting high-volume Vitamin Shoppe stores[116] - The Company is investing $1 million in research and development for new health and wellness products[170] - The company plans to implement a new marketing strategy focusing on digital channels, expecting a 30% increase in online engagement[170] - FitLife Brands, Inc. has introduced a new line of protein supplements, projected to contribute $500,000 in revenue within the first six months[170] Compliance and Governance - The Company operates as a single reportable segment, with financial performance evaluated on a consolidated basis[56] - The Company is in compliance with all covenants as of March 31, 2025, including maintaining a Fixed Charge Coverage Ratio of not less than 1.25 to 1.00[71] - Management believes that cash flow from operations and available borrowings under the Line of Credit will provide sufficient capital necessary to operate the business over the next twelve months[133] - Management concluded that no triggering event for impairment occurred during the three months ended March 31, 2025[142] - The Company evaluates its estimates and assumptions regularly, with actual results potentially differing from these estimates[140] Sustainability and Future Outlook - The management emphasized a commitment to sustainability, aiming for a 25% reduction in packaging waste by 2026[170] - FitLife Brands, Inc. anticipates a revenue growth forecast of 12% for the upcoming quarter, driven by new product launches[170] - The company is exploring potential acquisition opportunities to enhance its product portfolio[170] - User data showed a growth in active subscribers by 10,000, reaching a total of 150,000 subscribers[170]