Highlights for the fourth quarter and full year ended
- Total revenue for the fourth quarter was
$3.7 million . - Core FitLife revenue increased 16% to
$2.8 million from$2.4 million in the fourth quarter of 2015. - Net loss for the fourth quarter was
$1.2 million or ($0.11 ) per share. - For the full year ended
December 31 , total revenue increased 41% to$25.3 million versus$17.9 million for 2015. - Core FitLife revenue for the year was
$18.3 million , an increase of 10.7% over$16.5 million in the same period a year ago. - iSatori contributed
$7.1 million in revenue for the year. - Net income for the full year ended
December 31, 2016 was$0.4 million or$0.03 per share compared to a loss of$1.1 million or ($0.13 ) per share last year.
For the fourth quarter ended
Gross margin was 25.0% for the quarter compared to 31.6% in the same period a year ago. The reduction in gross margin is due to a non-cash charge for inventory adjustments of approximately
Net loss for the fourth quarter of 2016 was
For the full year ended
Net income for the year ended
The Company ended the year with
“We are encouraged by our revenue performance for the fourth quarter and full year given the industry headwinds we are currently facing,” said John S Wilson, CEO of
“Innovation and new product introductions remain a key element of our business. Revenue from new products, which includes new products, reformulated products and new flavors, consistently account for 25% of revenue on a trailing 12-month basis. That said, the number of new products introduced within any specific quarter can vary greatly. Case in point, during the first quarter of 2016 we introduced 36 new products as compared to only 6 new products during the first quarter of 2017. The timing of such introductions causes a degree of lumpiness to certain quarterly comparisons.”
Following the issuance of fourth quarter financial results, the company will provide recorded comments that can be accessed on the
About
Forward-Looking Statement
Statements in this release that are forward looking involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to be materially different from any future performance that may be suggested in this news release. Such factors may include, but are not limited to: the ability to of the Company to continue to grow revenue; and the Company’s ability to continue to achieve positive cash flow given the Company’s existing and anticipated operating and other costs. Many of these risks and uncertainties are beyond the Company’s control. Reference is made to the discussion of risk factors detailed in The Company’s filings with the
Non-GAAP Financial Measures
This press release includes the following financial measures defined as “non-GAAP financial measures” by the
Non-GAAP net income excludes items such as impairment charges, allowance for doubtful accounts, charges to consolidate and integrate recently acquired businesses, costs of closing corporate facilities, non-cash stock based compensation and other one-time cash and non-cash charges. Non-GAAP EPS excludes items such as non-cash stock based compensation, charges to consolidate and integrate recently acquired businesses, costs for closing corporate facilities, amortization of acquired intangible assets and other one-time cash and non-cash charges. The Company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expenses, gains and losses or net purchases of property and equipment, as the case may be, which may not be indicative of its core operation results and business outlook.
| |
||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||
| FOR THE YEARS ENDED |
||||||||
| 2016 | 2015 | |||||||
| Revenue | $ | 25,313,601 | $ | 17,931,464 | ||||
| Total | 25,313,601 | 17,931,464 | ||||||
| Cost of Goods Sold | 15,242,537 | 11,653,057 | ||||||
| Gross Profit | 10,071,064 | 6,278,407 | ||||||
| OPERATING EXPENSES: | ||||||||
| General and administrative | 5,002,149 | 4,141,937 | ||||||
| Selling and marketing | 4,118,414 | 2,926,063 | ||||||
|
Depreciation and amortization |
478,235 | 300,141 | ||||||
| Total operating expenses | 9,598,798 | 7,368,141 | ||||||
| OPERATING INCOME (LOSS) | 472,265 | (1,089,734 | ) | |||||
| OTHER (INCOME) AND EXPENSES | ||||||||
| Interest expense | 109,391 | 90,410 | ||||||
| Other expense (income) | (5,204 | ) | 13,768 | |||||
| Total other (income) expense | 104,187 | 104,178 | ||||||
| INCOME TAXES (BENEFIT) | – | (27,972 | ) | |||||
| NET INCOME (LOSS) | $ | 368,078 | $ | (1,165,940 | ) | |||
| NET INCOME (LOSS) PER SHARE: | ||||||||
| Basic | $ | 0.04 | $ | (0.13 | ) | |||
| Diluted | $ | 0.03 | $ | (0.13 | ) | |||
| Basic | 10,429,452 | 8,677,433 | ||||||
| Diluted | 11,521,344 | 8,677,433 | ||||||
|
The accompanying notes are an integral part of these consolidated financial statements |
||||||||
| |
||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| ASSETS: | |
|
||||||
| 2016 | 2015 | |||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 1,293,041 | $ | 1,532,550 | ||||
| Accounts receivable, net | 2,792,649 | 2,684,567 | ||||||
| Security deposits | 24,956 | 26,077 | ||||||
| Inventory | 3,756,716 | 4,790,301 | ||||||
| Note receivable, current portion | 2,782 | 16,517 | ||||||
| Prepaid income tax | 120,000 | 152,000 | ||||||
| Prepaid expenses and other current assets | 136,014 | 334,483 | ||||||
| Total current assets | 8,126,158 | 9,536,493 | ||||||
| PROPERTY AND EQUIPMENT, net | 171,004 | 226,804 | ||||||
| Note receivable, net of current portion | 52,695 | 52,695 | ||||||
| Deferred Taxes | 689,000 | 812,879 | ||||||
| Intangibles assets, net | 6,507,505 | 6,929,505 | ||||||
| TOTAL ASSETS | $ | 15,546,363 | $ | 17,558,378 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY: | ||||||||
| CURRENT LIABILITIES: | ||||||||
| Accounts payable | $ | 1,596,748 | $ | 3,363,906 | ||||
| Accrued expenses and other liabilities | 539,765 | 1,003,832 | ||||||
| Litigation Reserve | – | 95,775 | ||||||
| Line of credit | 1,950,000 | 1,490,305 | ||||||
| Term loan agreement, current portion | 544,825 | 525,589 | ||||||
| Notes payable | 12,700 | 54,036 | ||||||
| Total current liabilities | 4,644,038 | 6,533,443 | ||||||
| LONG-TERM DEBT, net of current portion | 369,177 | 914,138 | ||||||
| TOTAL LIABILITIES | 5,013,215 | 7,447,581 | ||||||
| CONTINGENCIES AND COMMITMENTS | – | – | ||||||
| STOCKHOLDERS’ EQUITY: | ||||||||
|
Preferred stock, |
||||||||
|
Preferred stock Series A; 10,000,000 shares authorized; 0 shares issued and outstanding as of |
– |
– |
||||||
|
Preferred stock Series B; 1,000 shares authorized; 0 shares issued and outstanding as of |
– |
– |
||||||
|
Preferred stock Series C; 500 shares authorized; 0 shares issued and outstanding as of |
– |
– |
||||||
|
Common stock, |
104,495 |
104,443 |
||||||
|
Subscribed common stock: 33,869 and 9,688 shares pending issuance as of |
339 |
97 |
||||||
| |
(44,417 | ) | (142,228 | ) | ||||
| Additional paid-in capital | 30,919,289 | 30,963,122 | ||||||
| Accumulated deficit | (20,446,559 | ) | (20,814,637 | ) | ||||
| Total stockholders’ equity | $ | 10,533,147 | $ | 10,110,797 | ||||
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ | 15,546,363 | $ | 17,558,378 | ||||
| The accompanying notes are an integral part of these consolidated financial statements | ||||||||
| |
||||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
| FOR THE YEARS ENDED |
||||||||
|
2016 |
2015 | |||||||
| Net income | $ | 368,078 | $ | (1,165,940 | ) | |||
|
Adjustments to reconcile net income to net cash used in operating activities: |
||||||||
| Depreciation and amortization | 478,235 | 300,141 | ||||||
| Capitalization of select merger costs | – | (57,507 | ) | |||||
| Common stock issued (cancelled) for services | 40,508 | 453,779 | ||||||
| Warrants and options issued (cancelled) for services | 58,178 | – | ||||||
| Gain on write-up of investment | – | – | ||||||
| Intercompany transfer | – | (746,784 | ) | |||||
| Changes in operating assets and liabilities: | ||||||||
| Accounts receivable | (108,082 | ) | (116,269 | ) | ||||
| Inventory | 1,033,585 | (1,559,392 | ) | |||||
| Deferred tax asset | 123,879 | (66,565 | ) | |||||
| Prepaid income tax | 32,000 | (152,000 | ) | |||||
| Prepaid expenses | 198,469 | 195,430 | ||||||
| Note receivable | 13,735 | 4,074 | ||||||
| Deposits | – | 1,060 | ||||||
| Accounts payable | (1,767,159 | ) | 522,591 | |||||
| Accrued liabilities | (464,067 | ) | (123,814 | ) | ||||
| Litigation reserve | (95,775 | ) | 95,775 | |||||
| Income tax payable | – | (40,000 | ) | |||||
| Net cash provided by (used in) operating activities | (88,416 | ) | (2,455,421 | ) | ||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
| Purchase of property and equipment | (23,405 | ) | (12,833 | ) | ||||
| Proceeds from sale of assets | (3,177 | ) | – | |||||
| Repurchases of common stock | (44,413 | ) | (398,209 | ) | ||||
| Net cash provided by (used in) investing activities | (70,995 | ) | (411,042 | ) | ||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
| Proceeds from issuance of long-term debt | 459,695 | – | ||||||
| Payments for redemption of preferred stock | – | – | ||||||
| Repayments of note payable | (539,794 | ) | (660,201 | ) | ||||
| Net cash provided by (used in) financing activities | (80,099 | ) | (660,201 | ) | ||||
| INCREASE (DECREASE) IN CASH | (239,510 | ) | (3,526,665 | ) | ||||
| CASH, BEGINNING OF PERIOD | 1,532,551 | 5,059,215 | ||||||
| CASH, END OF PERIOD | $ | 1,293,041 | $ | 1,532,550 | ||||
| Supplemental disclosure operating activities | ||||||||
| Cash paid for interest | $ | 109,391 | $ | 90,410 | ||||
| The accompanying notes are an integral part of these consolidated financial statements | ||||||||
View source version on businesswire.com: http://www.businesswire.com/news/home/20170418005594/en/
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