FitLife Brands(US:FTLF)2025-11-13 12:30Financial Performance - Revenue for Q3 2025 reached $23,485,000, a 46.7% increase from $15,977,000 in Q3 2024[16] - Gross profit for Q3 2025 was $8,736,000, compared to $7,001,000 in Q3 2024, reflecting a 24.8% increase[16] - Net income for Q3 2025 was $921,000, down 56.7% from $2,126,000 in Q3 2024[16] - Operating income for Q3 2025 was $2,318,000, down from $3,182,000 in Q3 2024, a decrease of 27.1%[16] - The company reported a comprehensive income of $847,000 for Q3 2025, compared to $2,161,000 in Q3 2024, a decline of 60.8%[16] - Net income for the nine months ended September 30, 2025, was $4,686,000, a decrease of 32.2% compared to $6,914,000 for the same period in 2024[19] - Total revenue for the nine months ended September 30, 2025, was $55,548,000, an increase of 12.3% from $49,456,000 in 2024[40] Assets and Liabilities - Total current assets increased to $37,400,000 in Q3 2025 from $18,143,000 in Q4 2024, a growth of 106.5%[14] - Total liabilities rose to $68,092,000 in Q3 2025, compared to $22,405,000 in Q4 2024, an increase of 203.5%[14] - Stockholders' equity increased to $41,892,000 in Q3 2025 from $36,126,000 in Q4 2024, a rise of 15.5%[14] - Cash and cash equivalents of $3,512,000 as of September 30, 2025, down from $4,468,000 as of December 31, 2024[14] - Cash and restricted cash at the end of the period was $3,512,000, down from $4,720,000 at the end of the same period in 2024, a decrease of 25.6%[19] - The Company reported a total debt of $46,457 as of September 30, 2025, compared to $13,050 as of December 31, 2024[68] Revenue Sources - Online revenue accounted for approximately 56% of net revenue for the nine months ended September 30, 2025, down from 66% in the same period of 2024[37] - Wholesale revenue represented approximately 44% of net revenue for the nine months ended September 30, 2025, compared to 34% in the prior year[37] - The Company’s sales to customers in the U.S. were approximately 95% during the three months ended September 30, 2025, consistent with 96% in the same period of 2024[38] - Net sales to GNC represented 13% of total net revenue for the three months ended September 30, 2025, down from 23% in the same period of 2024[44] Acquisition Details - The Company acquired Irwin Naturals for approximately $42,500,000 in August 2025, funded by a combination of term loans and available cash[24] - The Company acquired substantially all of the assets of Irwin for approximately $42,500 on August 8, 2025, funded primarily through a new term loan and a revolving line of credit[93] - Irwin generated revenue of $6,821 and net income of $504 from August 8, 2025 through September 30, 2025[99] Expenses and Costs - The cost of goods sold for Q3 2025 was $14,749,000, which is a 64.5% increase from $8,976,000 in Q3 2024[16] - SG&A expenses increased 55% to $4,105 for the three months ended September 30, 2025, largely due to the acquisition of Irwin[122] - Cost of goods sold for the nine months ended September 30, 2025 increased 20% to $33,034 million, primarily due to the increase in revenue from the acquisition of Irwin[128] - Gross margin for the nine months ended September 30, 2025 decreased to 40.5% from 44.2% for the comparable prior period, primarily due to the acquisition of Irwin[130] Cash Flow and Financing - Net cash provided by operating activities for the nine months ended September 30, 2025, was $7,195,000, down from $8,653,000 in 2024, reflecting a decline of 16.8%[19] - Cash used in investing activities for the nine months ended September 30, 2025, was $42,537 million, significantly higher than $10 million in the same period of 2024, primarily due to the acquisition of Irwin for $42,500 million[160] - Cash provided by financing activities for the nine months ended September 30, 2025, was $34,009 million, compared to cash used of $5,875 million during the same period in 2024, driven by borrowings under the Credit Agreement for the acquisition of Irwin[161] - The Company entered into a new credit agreement on August 8, 2025, providing a five-year term loan of $40,625 million and a three-year revolving line of credit of up to $10,000 million[155] Tax and Compliance - Cash paid for income taxes in the nine months ended September 30, 2025, was $2,278,000, compared to $1,105,000 in 2024, indicating an increase of 106.5%[19] - The effective income tax rate increased to 32% for the nine months ended September 30, 2025, compared to 25% for the same period in 2024[54] Shareholder Information - Basic weighted average shares outstanding for the three months ended September 30, 2025, were 9,391, up from 9,196 in 2024[56] - The Company has authorized a share repurchase program of up to $5,000 over 24 months, with no repurchases made during the nine months ended September 30, 2025[82][83] - As of September 30, 2025, the intrinsic value of outstanding options was $12,875, based on a closing stock price of $19.89[85] Risk Management - The Company has not entered into any foreign currency hedging transactions during the nine months ended September 30, 2025, increasing exposure to foreign currency fluctuations[182] - Management believes that product returns are immaterial and unlikely to cause significant revenue reversals in the future[179] - The Company is not involved in any litigation that could materially affect its financial condition or results of operations[190] - Management is not aware of any material changes to the risk factors discussed in the Annual Report for the fiscal year ended December 31, 2024[191]