FitLife Brands, Inc. Provides Earnings Guidance for Fourth Quarter and Full Year Ended December 31, 2015
March 10, 2016 at 01:55 pm
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FitLife Brands, Inc. provided earnings guidance for fourth quarter and full year ended December 31, 2015. Total revenue is estimated to be approximately $3.8 million for the fiscal fourth quarter ended December 31, 2015, compared to $2.0 million in the prior year period. Included in the total revenue figure is an approximate $1.4 million contribution from the iSatori acquisition. Excluding iSatori-related contribution, the Company expects to report fourth quarter 2015 FitLife revenue of approximately $2.4 million, a 19% increase from $2.0 million last year. The accounting change reduced revenue by $412,000 in the quarter and by $117,000 in the fourth quarter of 2014. Net income for the fourth quarter is expected to be a loss of approximately $1.8 million compared to a loss of $509,000 in the same period a year ago. Approximately $0.7 million of the loss was attributable to iSatori and $1.1 million to the core FitLife business. The decrease in net income was principally attributable to approximately $200,000 of non-recurring costs incurred in connection with merger with iSatori and nearly $150,000 investment in its new Metis line for advertising and new product development.
For the full year 2015, total revenue is estimated at $17.9 million, including iSatori's fourth quarter contribution, versus $19.6 million in 2014. Core FitLife revenue for the year was approximately $16.5 million. The decrease in annual revenue was primarily attributable to the shift to GNC's centralized distribution where the Company now sells its products at an approximate 15% discount to the prior model. This is more evident as core revenue was down approximately 15%. Revenue for 2015 and 2014, was lowered by approximately $1.5 million and $0.4 million, respectively, due to the reclassification of indirect product rebates from sales and marketing expense to a reduction in revenue. Net income for fiscal year 2015 is estimated at a loss of $1.2 million compared to a profit of $1.7 million in 2014. The core FitLife business' expected loss is approximately $0.5 million. Contributing to the loss was approximately $750,000 in merger related expenses, a noncash stock expense of $400,000 earlier in the year, and previously addressed investments in the new Metis product line.
FitLife Brands, Inc. is a developer and marketer proprietary nutritional supplements and wellness products for health-conscious consumers. It markets approximately 300 different products primarily online, through domestic and international GNC franchise locations as well as through more than 17,000 additional domestic retail locations. It offers NDS Nutrition, PMD Sports, SirenLabs, Core Active, Nutrology, and Metis Nutrition (together, NDS Products); iSatori, BioGenetic Laboratories, and Energize (together, the iSatori Products); Dr. Tobias, All Natural Advice, and Maritime Naturals (together, the MRC Products) and MusclePharm. Its NDS brand includes premium weight loss, sports nutrition, and general health products. Its PMD brand includes premium sports nutrition products. Its Nutrology brand included sports nutrition and general wellness products with an emphasis on natural, vegan, and organic ingredients. Its SirenLabs brand includes weight loss and sports nutrition products.