Fitlife Brands, Inc. · NASDAQ:FTLF
Fitlife Brands — Merger or Acquisition (August 2015)
19 slides from Fitlife Brands's merger presentation, Aug 27, 2015
Slide 1: Investor Presentation | August 2015
FTLF FITLIFE@ Investor Presentation | August 2015
Slide 2: Safe Harbor Statement
Safe Harbor Statement Statements in this presentation 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 presentation. Such fac
Slide 3: Investment Highlights
Investment Highlights Premium manufacturer of innovative and proprietary nutritional supplements for sports nutrition, weight loss and general health Proven expertise creating, differentiating and launching successful brands Opportunity to expand revenue 5x within GNC system * Leading third-party ve
Slide 4: Snapshot
Snapshot Founded: 2006 / New Mgmt 2010 Headquarters: Omaha, NE Employees: 18 - 20 Revenue: $16.5MM (ttm) Earnings: $256K (ttm) Long-Term Debt: $1.1MM (June 2015) Cash: $4.3MM (June 2015) Ticker: FTLF (OTCBB) Recent Price: $1.50 FD S/O: 8.8MM (8.1MM Basic) Market Capitalization: $12.1MM Enterprise Va
Slide 5: Experienced Management Team & Board
Experienced Management Team & Board Lewis Jaffe, Chairman of the Board - Accomplished corporate executive with significant Board-level experience as a director, lead independent director and chairman John Wilson, Chief Executive Officer, President and Director - Successful 18 year career managing di
Slide 6: What We Do
What We Do Premium provider of nutritional supplements for: * Sports Nutrition — 68% Energy, Strength, Endurance, Mass, Performance, Recovery + Weight Loss — 28% Metabolism, Toning, Appetite Control, Meal Replacement * General Health - 4% Inflammation, Joints, Vitality FITLIFE@
Slide 7: What We Do
What We Do Premium provider of nutritional supplements for: ° Sports Nutrition — 68% Energy, Strength, Endurance, Mass, Performance, Recovery * Weight Loss — 28% Metabolism, Toning, Appetite Control, Meal Replacement * General Health — 4% Inflammation, Joints, Vitality FITLIFE@
Slide 8: What We Do
What We Do Premium provider of nutritional supplements for: ° Sports Nutrition — 68% Energy, Strength, Endurance, Mass, Performance, Recovery ° Weight Loss — 28% Metabolism, Toning, Appetite Control, Meal Replacement * General Health - 4% Inflammation, Joints, Vitality FITLIFE@
Slide 9: How We Compete
How We Compete Strategy of building a portfolio of authentic and innovative, best-in-class nutritional supplement brands that have a strong value proposition for consumers as well as our distribution partners * Partners get brand exclusivity, channel discipline, and strong economics ¢ nd users get h
Slide 10: Large and Growing Addressable Market
FTLF Large and Growing Addressable Market Nutritional Supplement Market — $32B Annual Sales* | Specialty Mass | Direct + Online | Multi Level | Practitioners | Retail Market Marketing $11.8B $9.3B $3.5B $5.3B $2.7B According to the Nutritional Business Journal, the Sports, Meal Replacement and Speci
Slide 11: Specialty Retail Brand Strategy
Specialty Retail Brand Strategy SEE init iia Franchise Stores | Corporate Stores Specialty Stores —CORE ACTIVE ig Perfomance Series Distribution Partners Win Brand exclusivity, channel discipline, strong margins and sales support Consumers Win Authentic brands with quality products, efficacy and tru
Slide 12: Disciplined Growth Strategy
Disciplined Growth Strategy GNC Holdings Domestic Franchise 1,060 US Stores International Franchise 2,100 Stores 50+ Countries Corporate Owned 3,250 US Stores 200 Canadian Stores Mergers & Acquisitions iSatori, Inc. Current Penetration by Segment Domestic Franchise 900+ stores 85%+ Penetration 300+
Slide 13: Well Positioned to Resume Double Digit Revenue Growth
Well Positioned to Resume Double Digit Revenue Growth 25% CAGR 2010-2014 25% Annual Growth 2010-2014 25,000 Comparisons 4Q14-3Q15 20,000 Clouded by transition to GNC central dist. Retail unit volume 2Q15 up slightly compared 15,000 2Q14... sports nutrition segment increased approx. 10% and trending
Slide 14: Transition to GNC Centralized Distribution
FTLF Transition to GNC Centralized Distribution Mandated by GNC, we transitioned from direct model to GNC-centric distribution model in May 2014 for everything but protein, which went in mid-September While management expects no material ongoing impact on the business, the transition did impact cert
Slide 15: New Brand Metis Nutrition
New Brand Metis Nutrition First SKU of Metis Nutrition JXT-5™ shipped to 2400 corporate and 400 franchise GNC stores at the end of 2Q15 JXT5™ - offers a potent multifaceted 5 in 1 formulation bringing together five key elements designed to support a healthy increase in testosterone, joint health and
Slide 16: Proposed Merger with iSatori, Inc.
Proposed Merger with iSatori, Inc. FitLife has entered into a definitive agreement and plan of merger to acquire all of the outstanding shares of iSatori, Inc. (OTCBB: IFIT) in an all-stock transaction. Deal Summary ¢lssue 4 million shares and assume net debt of $900K * Company option to repurchase
Slide 17: Target Operating Results
Target Operating Results 3-5 Year Targets 2Q 2014 2Q 2015 Gross Margin 33% to 37% 37.6% 38.5% i 9 Operating Expenses 85% 9.394 + 28% 23.9% 28.4%" of Sales* Non-GAAP Net Margin* 6% to 8% 12.1% 8.0%* *Non-GAAP 2Q15 Net Margin and operating expense as a percentage of sales exclude costs related to the
Slide 18: Appendix: Non-GAAP Net Income and EPS Reconciliation
Appendix FTLF FitLife Brands, Inc. Non-GAAP Net Income and EPS Reconciliation 2Q 2015 1H 2015 Revenue $5,027,003 $8,869,425 Net Income $243,537 $201,274 Weighted Average Shares, Diluted $8,790,132 $8,732,810 EPS, Diluted $0.03 $0.02 Non-GAAP Net Income Reconciliation Adjustments Merger Costs $222,71
Slide 19: Thank You
FITLIFE@ THANK YOU. Contact Information FitLife Brands, Inc. 4509 S 143rd Street, Suite 1 Omaha, NE 68137 www.FitLifeBrands.com Investor Relations: Jeff Elliott (972) 423-7070 Phillip Kupper (817) 368-2556 19