FitLife Brands reports Q3 EPS 43c vs. 35c last year

Reports Q3 revenue $16M vs. $13.9M last year. Dayton Judd, the Company’s Chairman and CEO commented, “I am pleased with the Company’s continued strong performance. At MRC, the Dr. Tobias brand-which represents just over 90% of the MRC business-continued to grow despite significant year-over-year reductions in advertising and marketing spend. And although revenue for MRC’s skin care brands has declined significantly due to our decision to exit unprofitable markets and raise prices in others, the brands are substantially more profitable. The MRC brands’ collective contribution of approximately $9.4 million over the last twelve months compares very favorably to the $17.1 million acquisition price the Company paid for MRC. For the past couple of years following the COVID pandemic, we have experienced declining sales of our products through brick-and-mortar retailers, primarily due to store closures and declining foot traffic. For the first eight months of 2024, the year-over-year percentage declines in retail sales of FitLife products were in the low double digits. We are encouraged that the rate of decline has improved sequentially in each month over the past four months, with year-over-year declines now in the single digits. Also, as a reminder, the profit impact of wholesale declines for our Legacy FitLife brands (FTLF) are largely offset by the continued growth in high-margin online sales of those products. With regard to MusclePharm, we are encouraged by the recent wins we have had for the MusclePharm Combat Sport bars and the new MusclePharm Pro Series, and we remain engaged with a number of other prospective customers as we seek to continue to grow the brand. Overall, I am pleased with the strong performance of our brands, which would not be possible without the continued dedication of each FitLife team member. The Company’s balance sheet is strong, with net debt now representing approximately only 0.7x adjusted LTM EBITDA. During 2023, we borrowed $22.5 million to help fund the purchase of MRC and the MusclePharm assets. As of the end of the third quarter of 2024, we had repaid $8.25 million of those borrowings, and on a net debt basis only $9.5 million remains outstanding. The Company continues to evaluate potential M&A opportunities with a specific focus on accretive, non-dilutive transactions.”