Fitlife Brands, Inc. · NASDAQ:FTLF
Fitlife Brands — Investor Presentation (May 2014)
22 slides from Fitlife Brands's investor presentation, May 1, 2014
Slide 1: FitLife Brands Investor Presentation | Spring 2014
FTLF FITLIFE@ Investor Presentation | Spring 2014
Slide 2: Safe Harbor Statement
FTLF 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. Suc
Slide 3: Investment Highlights
FTLF Investment Highlights Premium manufacturer of innovative and proprietary nutritional supplements for health conscious consumers Number 1 vendor in GNC franchise system Less than 20% penetration into total GNC door count Brand-centric growth platform with track record of success and multiple cha
Slide 4: Brand Top Sellers
Brand Top Sellers (CREATINE 61Spee 9 CLA/Omega 3-6-9 24-hour natural Low stimulant Concentrated body toning testosterone stack metabolism pre-workout for supplement to for daytime and booster with accelerating help target and nighttime clinically studied workout tone the inches. support. amounts of
Slide 5: Revenue Mix
FTLF Revenue Mix Sports Nutrition - 69% Pre-, Intra- and Post-Workouts Support for: Energy, Strength, Endurance, Mass, Performance, Recovery Revenue by Category @ Weight Loss — 28% Support for: Thermogenic Energy, Metabolism, Toning, Appetite Control, Focus/Alertness, Diuretics, Mood, Carbohydrate/F
Slide 6: Large Market Opportunity
FTLF Large Market Opportunity Nutritional Supplement market was greater than $30B in 2011 and expected to grow at a compound annual growth rate of 6% through 2020 Sports Nutrition market segment accounted for 12% of the total market and is expected to grow at a compound annual rate of greater than 9
Slide 7: Competitive Advantages
FTLF Competitive Advantages Focus on Innovation — 8to 10 new products every 6 months — 25% of annual revenue from new products Strong Brand Equity — Customer loyalty Premium Formulations — Truth-in-labeling Collaborative Model — Offer franchisees both source of competitive differentiation and strong
Slide 8: GNC Distribution Footprint
FTLF GNC Distribution Footprint GNC Holdings Current Penetration by Segment for FitLife Brands, Inc. Domestic Franchise Domestic Franchise 1,000 US Stores 800+ US Stores 80%+ Penetration 300+ Customers International Franchise International Franchise 2,000 Stores 300+ Stores 50+ Countries Less than 2
Slide 9: Brand Strategy and Development
FTLF Brand Strategy and Development Continued innovation and product line extensions Expand footprint and focus, pursue potential 3,000+ additional stores in US and Canada, anticipate launch of new brand in late 2014 Now GNC Domestic Franchise GNC International Franchise Drive door count expansion 4
Slide 10: Snapshot
Snapshot FTLF Founded: 2006 / New Mgmt 2010 Headquarters: Omaha, NE Employees: 15 Revenue: $20.0MM Earnings: $1.7MM Operating Cash Flow: $3.0MM Long-Term Debt: $2.3MM Cash: $3.3MM Ticker: FTLF (OTCBB) Recent Price: $2.30 Shares Out: 8.1MM FD S/O: 8.6MM Market Capitalization: $18.7MM Enterprise Value
Slide 11: Company History
FTLF Company History 34% Annual Growth 2010-2013 August 2009 25,000 John Wilson Named CEO 20,000 June 2012 15,000 First International Order 10,000 | July 2013 5,000 a ia 2010 2011 2012 2013 Launched SirenLabs® Net Income (Loss) 2011 2012 2013 2,000 September 2013 (2,000) pod Name changeto (4,000) Fi
Slide 12: Trends and Performance
Trends and Performance FTLF Announced record quarterly revenue and profitability for Q1 2014 — $6.3MM revenue for the quarter, up 4.5% versus Q1 2012 — Domestic direct sales up 16.9% for the quarter as compared to the same quarter last year — Operating margin up almost 500 basis points — $1.0MM net
Slide 13: Target Operating Results
Target Operating Results 3-5 Year Targets 2012 2013 Q1 2014 Gross Margin 33% to 37% 36.1% 36.2% 37.2% Operating Expenses 23% to 28% 25.7% 29.2% 22.6% Net Margin 6% to 8% 10.3% 6.6% 15.6% FITLIFE@
Slide 14: Balance Sheet
Balance Sheet FTLF Cash Accounts Receivable Inventory Accounts Payable Long-term Debt Line of Credit Equity Dec. 2013 (in 000’s) $3,305 $1,260 $2,753 $1,205 $2,436 $437 $4,809 March 2014 (in 000’s) $3,307 $2,676 $1,926 $1,016 $2,315 $437 $5,963 Details DSO Target 30 — 45 days Target 4 to 6 turns In
Slide 15: Investment Highlights
FTLF Investment Highlights Premium manufacturer of innovative and proprietary nutritional supplements for health conscious consumers Number 1 vendor in GNC franchise system Less than 20% penetration into total GNC door count Brand-centric growth platform with track record of success and multiple cha
Slide 16: Thank You / Contact Information
FITLIFE@ THANK YOU. Contact Information FitLife Brands, Inc. 4509 S 143rd Street, Suite 1 Omaha, NE 68137 www.FitLifeBrands.com Investor Relations: Dave Mossberg (817) 310-0051
Slide 17: Brand Strategy and Development
FTLF Brand Strategy and Development Pioneered the creation of “Franchise Exclusive” brands, which continues to drive revenue growth both domestically and internationally NDS, PMD and SirenLabs will remain franchise exclusive brands Systematically building door count penetration and opportunity as a
Slide 18: Our History and Timeline
FTLF Our History and Timeline Began as a niche supplier of diet and workout products to a handful of GNC franchise owners and locations October 2008: FitLife acquired the assets of NDS Nutritional Products, Inc. Since 2009: Current management has expanded the number of domestic franchise locations f
Slide 19: Our Brands
Our Brands Innovative Weight Loss, General Health and Sports Nutrition Supplements Precision Formulations for Professional Muscular Development = e Performance Enhancing Supplements for Fitness Enthusiasts 4—SirenLabs “4 i q fe Essential Support for Accelerated Fitness and Nutritional GUNES FITLIFE@
Slide 20: Revenue Trends
FTLF Revenue Trends Revenue — 34% annual growth 2010-2013 excluding non-recurring — 15 quarters of year-over-year growth through 4Q 2013 - 4Q 2013 Revenue — 9% increase excluding non-recurring — 2013 revenue — 9% increase excluding non-recurring a a a a @ @ a@ @ o @ o a a a as at 2010 2011 2012 2013
Slide 21: Gross Margin
FTLF Gross Margin Gross Margin — Target 33% to 37% — 4Q 2013 - 34.0% — Consistently within or above targeted range 40% 35% 30% 25% 20% 15% 10% 0% QL11 Q211 Q311 411 A112 212 0312 A412 A113 Q213 0313 A413 FITLIFE@ g
Slide 22: Net Margin
FTLF Net Margin Net Margin — Target 6% to 8% — 3Q2013-9.9% — Consistently within or above targeted range 20.0% 15.0% 10.0% 5.0% 0.0% __, (01 2011 a2 2011.03 2011; 50% 10.0% 15.0% 20.0% * 40,2012 excludes tax benefit of approximately $700k FITLIFE@