FitLife Brands(FTLF) - 2024 Q3 - Quarterly Results

Financial Performance - Total revenue for Q3 2024 was $16.0 million, a 15$13.9 million in Q3 2023[1][4]. - Online sales reached $10.8 million, accounting for 68$2.1 million, up from $1.7 million in the same quarter last year[2][6]. - Adjusted EBITDA was$3.6 million, representing a 41% increase compared to Q3 2023[3][7]. - Wholesale revenue for Q3 2024 was $5.2 million, a 16$1.3 million[5][26]. - Revenue for the three months ended September 30, 2024, was $15.977 million, a 15$13.902 million in the same period of 2023[37]. - Gross profit for the nine months ended September 30, 2024, was $21.868 million, up 36$16.069 million in the same period of 2023[37]. - Operating income for the three months ended September 30, 2024, was $3.182 million, compared to$2.470 million in the same period of 2023, reflecting a 29% increase[37]. - Net income for the nine months ended September 30, 2024, was $6.914 million, a 81$3.816 million in the same period of 2023[37]. - Adjusted EBITDA for the nine months ended September 30, 2024, was $11,068,000, compared to$7,840,000 for the same period in 2023, reflecting a growth of 41%[42]. Cash Flow and Assets - Net cash provided by operating activities for the nine months ended September 30, 2024, was $8,653,000, up from$2,772,000 in 2023, indicating a significant improvement[38]. - Cash paid for income taxes increased to $1,105,000 for the nine months ended September 30, 2024, from$593,000 in 2023[38]. - The company reported a net cash used in investing activities of $(10,000) for the nine months ended September 30, 2024, compared to$(18,984,000) in 2023, showing a reduction in cash outflow[38]. - Cash and restricted cash at the end of the period was $4,720,000, down from$8,312,000 at the end of September 30, 2023[38]. - The foreign currency impact on cash was $54,000 for the nine months ended September 30, 2024, compared to a loss of$(3,000) in 2023[38]. - The company reported a decrease in inventories, with a change of $(1,223,000) for the nine months ended September 30, 2024, compared to an increase of$2,534,000 in 2023[38]. Debt and Liabilities - The company's net debt is approximately 0.7x adjusted LTM EBITDA, with $22.5 million borrowed for MRC and MusclePharm asset purchases, and$9.5 million remaining outstanding[31]. - Total current assets increased to $18.099 million as of September 30, 2024, from$14.693 million at the end of 2023[36]. - Total liabilities decreased to $24.429 million as of September 30, 2024, from$28.310 million at the end of 2023[36]. - The company had borrowings on term loans of $12,500,000 in the previous year, with payments on term loans amounting to$(5,875,000) in 2024[38]. Business Developments - The Company is launching the new MusclePharm Pro Series in early 2025, initially in select Vitamin Shoppe stores[23][24]. - MusclePharm Combat Sport bars and the new MusclePharm Pro Series have shown recent wins, indicating brand growth[30]. - The company continues to evaluate potential M&A opportunities, focusing on accretive, non-dilutive transactions[31]. - The MRC brands' contribution over the last twelve months was approximately $9.4 million, favorably comparing to the$17.1 million acquisition price[27]. Upcoming Events - The company will hold an investor conference call on November 14, 2024, to discuss financial results and future outlook[32]. Compensation and Expenses - The company incurred stock-based compensation of $344,000 for the nine months ended September 30, 2024, compared to$94,000 in 2023, indicating increased compensation expenses[38].