On August 14, 2024, FitLife Brands Inc (FTLF, Financial) released its 8-K filing detailing the financial results for the second quarter ended June 30, 2024. FitLife Brands Inc is a provider of proprietary nutritional supplements for health-conscious consumers, marketing its products under various brand names including NDS, PMD, Siren Labs, Core Active, Metis Nutrition, Isatori, and Biogenetic Laboratories.
Performance Overview
For the second quarter of 2024, FitLife Brands Inc reported total revenue of $16.9 million, marking a 15% increase from $14.8 million in the same period last year. Online revenue for the quarter was $11.2 million, up 13% year-over-year, accounting for 66% of the company's total revenue. Wholesale revenue also saw an 18% increase, reaching $5.7 million, bolstered by recent acquisitions of Mimi’s Rock Corp (MRC) and MusclePharm assets.
Financial Achievements
FitLife Brands Inc achieved a gross margin of 44.8% for the quarter, compared to 40.4% in the prior year. Net income for Q2 2024 was $2.6 million, up from $2.0 million in Q2 2023. Basic and diluted earnings per share were $0.57 and $0.53, respectively, compared to $0.44 and $0.40 in the same period last year. Adjusted EBITDA for the quarter was $3.8 million, a 31% increase year-over-year.
Income Statement Highlights
| Metric | Q2 2024 | Q2 2023 |
|---|---|---|
| Total Revenue | $16.9 million | $14.8 million |
| Gross Profit | $7.58 million | $5.97 million |
| Net Income | $2.6 million | $2.0 million |
| Adjusted EBITDA | $3.8 million | $2.9 million |
Balance Sheet and Cash Flow
As of June 30, 2024, FitLife Brands Inc had $15.4 million outstanding on its term loans and $3.7 million in cash, resulting in a total net debt of approximately $11.7 million. The company's $3.5 million revolving line of credit remains undrawn. The balance sheet shows total assets of $57.3 million, up from $55.3 million at the end of 2023.
Performance of Acquired Brands
Legacy FitLife revenue declined by 5% year-over-year, driven by a 10% decrease in wholesale revenue, partially offset by a 7% increase in online revenue. Despite the revenue decline, gross profit and contribution remained relatively stable. MRC revenue declined by 2%, but gross profit and contribution saw significant increases of 21% and 61%, respectively. MusclePharm revenue increased by 27% sequentially from Q1 2024 to Q2 2024.
Management Commentary
"During the second quarter of 2024, the Company continued to see many bright spots in our business. At MRC, the Dr. Tobias brand—which represents approximately 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," said Dayton Judd, the Company’s Chairman and CEO.
Conclusion
FitLife Brands Inc's Q2 2024 earnings report highlights strong revenue growth and improved profitability, driven by strategic acquisitions and effective cost management. The company's focus on optimizing its product mix and expanding its online presence has yielded positive results, positioning it well for future growth in the competitive nutritional supplements market.
For more detailed financial information, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from FitLife Brands Inc for further details.
