FitLife Brands Announces Fourth Quarter and Full-Year 2024 Results
Omaha, March 27, 2025 (GLOBE NEWSWIRE) -- FitLife Brands, Inc. ("FitLife" or the "Company") (NASDAQ:FTLF), a provider of innovative and proprietary nutritional supplements and wellness products, today announced financial results for the fourth quarter and full year ended December 31, 2024.
Highlights for the fourth quarter ended December 31, 2024 include:
Total revenue was $15.0 million, an increase of 13% compared to the fourth quarter of 2023.
Online sales were $10.1 million, representing 67% of total revenue and an increase of 12% compared to the fourth quarter of 2023.
Gross margin was 41.4% compared to 40.3% during the fourth quarter of 2023.
Net income was $2.1 million compared to $1.5 million during the fourth quarter of 2023.
Basic earnings per share and diluted earnings per share were $0.23 and $0.21, respectively, compared to $0.16 and $0.15 during the fourth quarter of 2023.
Adjusted EBITDA was $3.1 million, a 31% increase compared to the fourth quarter of 2023.
Highlights for the year ended December 31, 2024 include:
Total revenue was $64.5 million, an increase of 22% compared to the prior year.
Online sales were $43.0 million, representing 67% of total revenue and an increase of 29% compared to 2023.
Gross margin was 43.6% compared to 40.7% during 2023.
Net income was $9.0 million, an increase of 70% from the prior year.
Basic earnings per share increased 66% to $0.98 and diluted earnings per share increased 69% to $0.91.
Adjusted EBITDA was $14.1 million compared to $10.2 million in the prior year, an increase of 39%.
The Company ended the year with $13.1 million outstanding on its term loans and cash of $4.5 million, or total net debt of $8.6 million, equivalent to 0.6x adjusted EBITDA.
For the fourth quarter ended December 31, 2024, total revenue was $15.0 million, an increase of 13% compared to $13.3 million during the same period last year. Online revenue for the quarter was $10.1 million, an increase of 12% compared to the quarter ended December 31, 2023. Online revenue accounted for 67% and 68% of the Company's total revenue during the quarters ended December 31, 2024 and 2023, respectively.
Wholesale revenue for the quarter ended December 31, 2024 was $4.9 million, an increase of 15% compared to the same period last year. The Company's recent acquisitions of Mimi's Rock Corp ("MRC") and the MusclePharm assets contributed $1.7 million of wholesale revenue during the fourth quarter of 2024, while Legacy FitLife wholesale revenue was down $0.8 million, or 20%, compared to the same period last year.
For the year ended December 31, 2024, total revenue was $64.5 million, an increase of 22% compared to $52.7 million in the prior year. Online revenue for the full year was $43.0 million, an increase of 29% compared to $33.4 million in the prior year. Wholesale revenue for the full year was $21.5 million, an increase of 11% compared to $19.3 million in the prior year.
Gross margin for the quarter ended December 31, 2024 was 41.4% compared to 40.3% during the same period in the prior year. Gross margin for the full year ended December 31, 2024 was 43.6% compared to 40.7% during the prior year. Excluding the one-time impact of the fair value adjustment to inventory acquired as part of the MRC transaction, gross margin for fiscal 2023 would have been 41.3%
Net income for the fourth quarter of 2024 was $2.1 million compared to $1.5 million during the quarter ended December 31, 2023. Basic and diluted earnings per share were $0.23 and $0.21 respectively, compared to $0.16 and $0.15 during the fourth quarter of 2023.
Net income for the year ended December 31, 2024 was $9.0 million compared to $5.3 million during the prior year. Basic earnings per share increased 66% to $0.98 and diluted earnings per share increased 69% to $0.91 compared to the prior year.
Adjusted EBITDA for the quarter ended December 31, 2024 was $3.1 million, an increase of 31% compared to the same period in 2023. Adjusted EBITDA for the year ended December 31, 2024, which includes four full quarters of MRC's and MusclePharm's financial performance, was $14.1 million, an increase of 39% compared to $10.2 million during the prior year.
As of December 31, 2024, the Company had $13.1 million outstanding on its term loans and cash of $4.5 million, or total net debt of approximately $8.6 million. The Company's $3.5 million revolving line of credit remains undrawn.
Performance of Brands
One of the primary metrics used by management to evaluate the performance of the Company's brands is contribution, a non-GAAP financial measure which management defines as gross profit less advertising and marketing expenditures. Other companies may also report contribution as a performance metric, but their definition or calculation of contribution may differ from the Company's. Management believes that contribution, as defined by the Company, is a particularly relevant performance metric since it incorporates the gross profit associated with a specific brand or collection of brands as well as the advertising and marketing expenditures associated with the same brand or brands. With limited exceptions, other operating expenses incurred by the Company are generally not allocable to a specific brand or collection of brands.
Other than for MusclePharm, the numbers in the contribution tables presented below in the body of the press release represent the performance of a collection of brands. Legacy FitLife consists of nine brands and MRC consists of three brands. These collections of brands do not meet the definition of operating segments and are not managed as such.
Legacy FitLife
(Unaudited)
2023
2024
Q4
Q1
Q2
Q3
Q4
Wholesale revenue
4,011
4,506
4,224
3,859
3,210
Online revenue
2,134
2,455
2,578
2,443
2,112
Total revenue
6,145
6,961
6,802
6,302
5,322
Gross profit
2,480
2,928
3,006
2,684
2,115
Gross margin
40.4
%
42.1
%
44.2
%
42.6
%
39.7
%
Advertising and marketing
71
80
94
70
59
Contribution
2,409
2,848
2,912
2,614
2,056
Contribution as a % of revenue
39.2
%
40.9
%
42.8
%
41.5
%
38.6
%
For the fourth quarter of 2024, Legacy FitLife revenue declined 13% compared to the same period last year, driven by a 20% decline in wholesale revenue and a 1% decrease in online revenue.
Gross profit and contribution for Legacy FitLife decreased by 15% compared to the same period last year. Gross margin decreased from 40.4% during the fourth quarter of 2023 to 39.7% during the fourth quarter of 2024. Contribution as a percentage of revenue decreased from 39.2% to 38.6% over the same time period.
During the fourth quarter, a commercial dispute with GNC, the Company's largest customer, resulted in the Company rejecting all purchase orders from GNC beginning on December 1, 2024. However, any product that was ordered by GNC prior to December 1, 2024 continued to be shipped and was all received by GNC during the month of December.
Subsequent to the end of the fourth quarter, in early January 2025, the Company began selling and shipping product directly to its GNC franchisee customers. On January 23, 2025, the Company and GNC settled their commercial dispute and the Company immediately began accepting purchase orders from GNC, with shipments to the GNC distribution centers beginning approximately two weeks later. The Company continued shipping directly to GNC franchisees until the GNC distribution centers were restocked.
The Company's wholesale revenue continues to be challenged by declining customer counts in the brick-and-mortar stores of our wholesale partners. In addition, due to the size and timing of wholesale orders, wholesale revenue recognized by the Company during one quarter may not necessarily be reflective of the retail demand for the Company's products.
Mimi's Rock (MRC)
(Unaudited)
2023
2024
Q4
Q1
Q2
Q3
Q4
Wholesale revenue
91
94
90
71
40
Online revenue
6,811
7,399
7,371
7,139
6,832
Total revenue
6,902
7,493
7,461
7,210
6,872
Gross profit
2,790
3,520
3,597
3,441
3,350
Gross margin
40.4
%
47.0
%
48.2
%
47.7
%
48.7
%
Advertising and marketing
846
1,062
1,071
929
803
Contribution
1,944
2,458
2,526
2,512
2,547
Contribution as % of revenue
28.2
%
32.8
%
33.9
%
34.8
%
37.1
%
For the fourth quarter of 2024, MRC revenue declined less than one percent compared to the same period in 2023. Over the same time period, despite the slight decline in total revenue, gross profit increased 20% and contribution increased 31%. For the fourth quarter of 2024, gross margin increased to 48.7% from 40.4% last year.
Revenue for the largest MRC brand—Dr. Tobias—increased 6% while revenue for the skin care brands—Maritime Naturals and All Natural Advice—declined 38% in the fourth quarter of 2024 compared to the same period in 2023.
As previously disclosed, at the time of the MRC acquisition in 2023, the skin care brands were sold in a number of countries. Analysis subsequent to the acquisition determined that—in almost all countries other than Canada and the US—the products were being sold at levels resulting in negative contribution. Even worse, in many of those countries, the products were being sold at negative gross margins.
To optimize performance of the skin care brands, management exited a number of countries and raised prices in other countries. As a result of these changes, a substantial amount of unprofitable revenue was eliminated.
The substantial year-over-year increase in contribution for the MRC brands is a function of the optimization of the skin care brands, beneficial product mix within the Dr. Tobias brand, as well as the optimization of advertising spend across all MRC brands.
MusclePharm
(Unaudited)
2023
2024
Q4
Q1
Q2
Q3
Q4
Wholesale revenue
180
1,117
1,388
1,231
1,689
Online revenue
73
978
1,279
1,234
1,130
Total revenue
253
2,095
2,667
2,465
2,819
Gross profit
93
839
