FitLife Brands, Inc. Provides Preliminary Earnings Guidance for the Third Quarter and Nine Months Ended September 30, 2016
November 08, 2016 at 07:30 am EST
Share
FitLife Brands, Inc. provided preliminary earnings guidance for the third quarter and nine months ended September 30, 2016. For the quarter ended September 30, 2016 total revenue is estimated to be approximately $5.3 compared to $6.3 million revenue reported in the prior year period. On a quarterly basis, and adjusting for uniform accounting treatment in the two periods, the quarterly decline in revenue was primarily attributable to a calendar shift of the GNC franchise convention. While the company generated record sales during the 2016 convention, approximately $1.3 million related to convention orders shipped during the second quarter, whereas in 2015 the first orders related to convention did not ship until the third quarter. Net income for the third quarter of 2016 is estimated to be a loss of $0.4 million or $0.03 per share compared to a gain of $0.4 million or $0.04 per share in the prior year period. The decline in net income is a result of lower sales volumes in the iSatori sales channel.
For the nine months, total revenue is estimated to be $21.6 million compared to $15.1 million in the same period of 2015. Effective the beginning of 2016, the Company adopted the previously discussed accounting change for vendor-funded discounts (VFD) which for all periods thereafter has the impact on reducing GAAP revenue and reducing expenses, without any impact on operating income. Net income for the first nine months of 2016 is estimated to be approximately $1.5 million or $0.13 per share versus $0.6 million or $0.07 per share a year ago.
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.