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]