GlobeNewswire Inc | Aug 16, 2021 05:50PM EDT

August 16, 2021

Omaha, Aug. 16, 2021 (GLOBE NEWSWIRE) -- FitLife Brands AnnouncesSecond Quarter 2021 Results

OMAHA, NE August 16, 2021 -- FitLife Brands, Inc. (FitLife or the Company) (OTCQX: FTLF), an international provider of innovative and proprietary nutritional supplements for health-conscious consumers marketed under the brand names NDS Nutrition, PMD, SirenLabs, Nutrology, CoreActive, Metis Nutrition, iSatori, Energize, and BioGenetic Laboratories, today announced results for the three and six months ended June 30, 2021.

Highlights for the second quarter ended June 30, 2021 include:

-- Total revenue increased 197% to $8.1 million. -- Direct-to-consumer online sales increased 52% and accounted for 21% of total revenue. -- Gross profit increased 170% to $3.6 million. -- The Company generated net income of $1.5 million compared to a net loss of ($0.1) million during the same quarter last year. -- Adjusted EBITDA increased to $2.0 million compared to an adjusted EBITDA loss of ($0.1) million during the second quarter of 2020. -- Adjusted EBITDA for the trailing twelve months increased to $6.8 million. -- The Company ended the quarter with no debt and $8.4 million of cash.

For the second quarter ended June 30, 2021, total revenue was $8.1 million compared to $2.7 million in the same quarter last year, an increase of 197%. The increase was attributable to the closure of some of our retail partners store locations and the stay-at-home orders during the second quarter of 2020 caused by the COVID-19 pandemic, continued organic growth in our online and wholesale businesses, and the acquisition of Nutrology. During the quarter, online sales increased 52% and accounted for approximately 21% of the Companys revenue.

Gross profit increased 170% to $3.6 million, driven primarily by higher revenue. Gross margin declined to 43.7% due primarily to a reduction in higher-margin online sales as a percent of total revenue during the quarter.

Net income for the second quarter of 2021 was $1.5 million compared to a net loss ($0.1) million during the same quarter in 2020. Basic earnings per share was $1.37 and diluted earnings per share was $1.26, compared to a loss of ($0.09) per basic and diluted share during the same quarter last year.

Subsequent to releasing a substantial portion of the reserve against its deferred tax assets at the end of 2020, the Company now reports a provision for income taxes, which is largely non-cash. In an effort to provide a more cash-based earnings metric, and to allow better comparability to prior periods, the Company has begun reporting adjusted EBITDA, a non-GAAP measure that is not subject to procedures by our Independent Registered Public Accounting Firm. Please see the non-GAAP financial measures table below for a reconciliation of net income to adjusted EBITDA. For the quarter ended June 30, 2021, adjusted EBITDA was $2.0 million compared to an adjusted EBITDA loss of ($0.1) million in the same period last year. As of June 30, 2021, adjusted EBITDA for the trailing twelve months was $6.8 million.

Dayton Judd, the Companys Chairman and CEO, commented, The second quarter of 2021 was one of the strongest quarters in the Companys history. We continue to experience robust organic growth in both our wholesale and our online businesses. We have successfully integrated Nutrology into our operations, and we continue to look for opportunities to deploy our strong and growing cash balance into additional accretive acquisitions.

About FitLife BrandsFitLife Brands is a developer and marketer of innovative and proprietary nutritional supplements for health-conscious consumers. FitLife markets over 130 different dietary supplements to promote sports nutrition, improved performance, weight loss and general health primarily through domestic and international GNC franchise locations as well as through more than 17,000 additional domestic retail locations and, increasingly, online. FitLife is headquartered in Omaha, Nebraska. For more information please visit our website at www.fitlifebrands.com.

Forward-Looking StatementsStatements 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 Securities and Exchange Commission including its reports on Form 10-K and 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

Non-GAAP Financial Measures

The financial presentation below contains certain financial measures defined as non-GAAP financial measures by the SEC, including non-GAAP EBITDA and adjusted non-GAAP EBITDA. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in this Annual Report in accordance with GAAP.

As presented below, non-GAAP EBITDA excludes interest, income taxes, and depreciation and amortization. Adjusted non-GAAP EBITDAexcludes, in addition to interest, taxes, depreciation and amortization, equity-based compensation and non-recurring gains or losses. The Company believes the non-GAAP measures provide useful information to both management and investors by excluding certain expense and other items that may not be indicative of its core operating results and business outlook. The Company believes that the inclusion of non-GAAP measures in the financial presentation below allows investors to compare the Companys financial results with the Companys historical financial results and is an important measure of the Companys comparative financial performance.

FITLIFE BRANDS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS ASSETS: June 30, December 31, 2021 2020 (Unaudited) CURRENT ASSETS Cash $ 8,425,000 $ 6,336,000 Accounts receivable, net ofallowance of doubtful accounts of 1,757,000 2,044,000 $59,000 and $51,000, respectivelyInventories, net of allowance forobsolescence of $28,000 and 4,834,000 3,401,000 $56,000, respectivelyIncome tax receivable 40,000 40,000 Prepaid expenses and other current 228,000 52,000 assetsTotal current assets 15,284,000 11,873,000 Property and equipment, net 85,000 98,000 Right of use asset, net ofamortization of $296,000 and 183,000 208,000 $272,000, respectivelyIntangibles, net of amortization 212,000 - of $10,000 and $0, respectivelyGoodwill 358,000 225,000 Deferred tax asset 3,639,000 4,370,000 TOTAL ASSETS $ 19,761,000 $ 16,774,000 LIABILITIES AND STOCKHOLDERS' EQUITY: CURRENT LIABILITIES: Accounts payable $ 3,542,000 $ 3,246,000 Accrued expense and other 635,000 498,000 liabilitiesProduct returns 326,000 335,000 Lease liability - current 53,000 50,000 portionTotal current 4,556,000 4,129,000 liabilities Long-term lease liability, net of 131,000 158,000 current portionPPP loan - 453,000 TOTAL LIABILITIES 4,687,000 4,740,000 STOCKHOLDERS' EQUITY: Preferred stock, $0.01 par value,10,000,000 shares authorized, none outstandingas of June 30, 2021 and December - - 31, 2020Common stock, $0.01 parvalue, 15,000,000 shares authorized; 1,105,690 and1,060,818issued and outstanding as of June30, 2021 and December 31, 2020, 12,000 12,000 respectivelyTreasury stock, 219,654 and (2,050,000 ) (1,790,000 ) 210,631 shares, respectivelyAdditional paid-in capital 32,312,000 32,204,000 Accumulated deficit (15,200,000 ) (18,392,000 ) TOTAL STOCKHOLDERS' 15,074,000 12,034,000 EQUITY TOTAL LIABILITIES AND $ 19,761,000 $ 16,774,000 STOCKHOLDERS' EQUITY The accompanying notes are an integral part of these condensed consolidated financial statements

FITLIFE BRANDS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020 (Unaudited) Three months ended Six months Ended June 30 June 30 2021 2020 2021 2020 Revenue $ 8,141,000 $ 2,740,000 $ 14,299,000 $ 8,891,000 Cost of goods sold 4,580,000 1,421,000 7,661,000 4,835,000 Gross profit 3,561,000 1,319,000 6,638,000 4,056,000 OPERATING EXPENSES: General and administrative 917,000 1,001,000 1,774,000 1,734,000 Selling and marketing 716,000 435,000 1,385,000 1,106,000 Depreciation and amortization 15,000 10,000 23,000 23,000 Total operating expenses 1,648,000 1,446,000 3,182,000 2,863,000 OPERATING INCOME (LOSS) 1,913,000 (127,000 ) 3,456,000 1,193,000 OTHER EXPENSES (INCOME) Interest expense (income) (5,000 ) 5,000 (11,000 ) 8,000 Gain on settlement - - - (70,000 ) Gain on debt forgiveness - - (453,000 ) - Total other expenses (income) (5,000 ) 5,000 (464,000 ) (62,000 ) PRE-TAX NET INCOME (LOSS) 1,918,000 (132,000 ) 3,920,000 1,255,000 PROVISION (BENEFIT) FOR INCOME TAXES 410,000 (40,000 ) 728,000 (81,000 ) NET INCOME (LOSS) $ 1,508,000 $ (92,000 ) $ 3,192,000 $ 1,336,000 NET INCOME (LOSS) PER SHARE Basic $ 1.37 $ (0.09 ) $ 2.94 $ 1.27 Diluted $ 1.26 $ (0.09 ) $ 2.68 $ 1.19 Basic weighted average common shares 1,098,000 1,060,033 1,087,385 1,055,893 Diluted weighted average common shares 1,194,880 1,060,033 1,189,069 1,126,631 Theaccompanying notes are an integral part of these condensed consolidated financial statements

FITLIFE BRANDS, INC. CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2021 AND 2020 (Unaudited) Additional Common Stock Treasury Paid-in Accumulated Shares Amount Stock Capital Deficit Total THREE MONTHSENDED JUNE 30, 2021 MARCH 31, 1,090,818 $ 12,000 $ (1,790,000 ) $ 32,335,000 $ (16,708,000 ) $ 13,849,000 2021 Repurchaseof common (9,023 ) - (260,000 ) - - (260,000 ) stockExercise ofstock 3,895 - - 54,000 - 54,000 optionsRepurchase - - - (184,000 ) - (184,000 ) of optionsStock-based 20,000 - - 107,000 - 107,000 compensationNet income - - - - 1,508,000 1,508,000 JUNE 30, 1,105,690 $ 12,000 $ (2,050,000 ) $ 32,312,000 $ (15,200,000 ) $ 15,074,000 2021 THREE MONTHSENDED JUNE 30, 2020 MARCH 31, 1,060,033 $ 12,000 $ (1,790,000 ) $ 32,154,000 $ (25,678,000 ) $ 4,698,000 2020 Fair valueof common - - - 10,000 - 10,000 stock issuedfor servicesRepurchaseof common - - - - - - stockExercise ofstock - - - - - - optionsStock-based - - - 12,000 - 12,000 compensationNet income - - - - (92,000 ) (92,000 ) JUNE 30, 1,060,033 $ 12,000 $ (1,790,000 ) $ 32,176,000 $ (25,770,000 ) $ 4,628,000 2020 SIX MONTHSENDED JUNE 30, 2021 DECEMBER 31, 1,060,818 $ 12,000 $ (1,790,000 ) $ 32,204,000 $ (18,392,000 ) $ 12,034,000 2020Repurchaseof common (9,023 ) - (260,000 ) - - (260,000 ) stockExercise ofstock 3,895 - - 54,000 - 54,000 optionsRepurchase - - - (184,000 ) - (184,000 ) of optionsStock-based 50,000 - - 238,000 - 238,000 compensationNet income - - - - 3,192,000 3,192,000 JUNE 30, 1,105,690 $ 12,000 $ (2,050,000 ) $ 32,312,000 $ (15,200,000 ) $ 15,074,000 2021 SIX MONTHSENDED JUNE 30, 2020 DECEMBER 31, 1,054,516 $ 12,000 $ (1,619,000 ) $ 32,055,000 $ (27,106,000 ) $ 3,342,000 2019Fair valueof common 417 - - 26,000 - 26,000 stock issuedfor servicesRepurchaseof common (11,900 ) - (171,000 ) - - (171,000 ) stockExercise ofstock 17,000 - - 71,000 - 71,000 optionsStock-based - - - 24,000 - 24,000 compensationNet income - - - - 1,336,000 1,336,000 JUNE 30, 1,060,033 $ 12,000 $ (1,790,000 ) $ 32,176,000 $ (25,770,000 ) $ 4,628,000 2020 The accompanying notes are an integral part of these condensed consolidated financial statements

For the three months ended June For the six months ended June 30, 30, 2021 2020 2021 2020 (Unaudited) (Unaudited) (Unaudited) (Unaudited)Net income $ 1,508,000 $ (92,000 ) $ 3,192,000 $ 1,336,000 Interest (5,000 ) 5,000 (11,000 ) 8,000 expense (income)Provision(benefit) for 410,000 (40,000 ) 728,000 (81,000 )income taxesDepreciation 15,000 10,000 23,000 23,000 and amortizationEBITDA 1,928,000 (117,000 ) 3,932,000 1,286,000 Non-cash andnon-recurring adjustmentsStockcompensation 107,000 26,000 238,000 54,000 expenseNon-recurring - - (453,000 ) (70,000 )losses (gains)Adjusted EBITDA $ 2,035,000 $ (91,000 ) $ 3,717,000 $ 1,270,000

investor@fitlifebrands.com