Fitlife Brands, Inc. · NASDAQ:FTLF
Fitlife Brands — LD Micro Conference 2013
21 slides from Fitlife Brands's conference presentation, Dec 5, 2013
Slide 1: FitLife Investor Presentation December 2013
FTLF FITLIFE® Investor Presentation | December 2013
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 #1 vendor in GNC franchise system Less than 20% penetration into total GNC door count Scalable Brand-Centric Growth Model Successful track record of launchingand build
Slide 4: Our Products
Our Products Revenue by Category M Sports Nutrition — 69% Pre-, Intra- and Post-Workouts Support for: Energy, Strength, Endurance, Mass, Performance, Recovery Weight Loss — 28% Support for: Thermogenic Energy, Metabolism, Toning, Appetite Control, Focus/Alertness, Diuretics, Mood, Carbohydrate/Fat B
Slide 5: 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 6: Our Brands
Our Brands SirenLabs GUIDE Innovative Weight Loss, General Health and Sports Nutrition Supplements Precision Formulations for Professional Muscular Development Performance Enhancing Supplements for Fitness Enthusiasts Essential Support for Accelerated Fitness and Nutritional Goals — FITLIFE@
Slide 7: Brand Top Sellers
CLA/Omega 3-6-9 body toning supplement to help target and tone the inches. Brand Top Sellers 24-hour natural testosterone stack for daytime and nighttime support. Low stimulant metabolism booster with clinically studied amounts of key thermogenic & diet ingredients. Concentrated pre-workout for acce
Slide 8: Competitive Advantages
FTLF Competitive Advantages Focus on Innovation — 8 to 10 new products every 6 months — 25% of annualrevenue from new products — Extend and refresh existing product lines Scalable Brand-Centric Growth Model — Successful track record of launching and buildingnew brands Strong Brand Equity — Customer
Slide 9: Truth-in-Labeling
Truth-in-Labeling Use of efficacious amounts of clinically studied ingredients listed directly on the packaging Supplement Facts Serving Size 3 liquid -gels Servings Per Container 30 Tribulus (40% Saponins), Hesperidin Transresveratrol (leaf) BioPerine™ Smg Daily Value not established Ingredients: G
Slide 10: GNC Distribution Footprint
GNC Distribution Footprint FTLF GNC Holdings Domestic Franchise 984 US Stores Current Penetration by Segment for FitLife Brands, Inc. Domestic Franchise 800+ US Stores 80%+ Penetration 300+ Customers International Franchise 1,955 Stores 50+ Countries Corporate Owned 3,129 US Stores 170 Canadian Stor
Slide 11: 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 Collaborative approach; dominant vendor in the franchise system in t
Slide 12: Brand Strategy and Development
FTLF Brand Strategy and Development (@SirenLabs GUIDE Next GNC Domestic Franchise Continued innovation and product line extensions GNC International Franchise Drive door count expansion Gyms and Other Facilities Expand footprint and focus, pursue potential national account opportunities GNC Corporat
Slide 13: Snapshot
FTLF Snapshot mi | Headquarters: Omaha, NE erie ie Revenue: $19.4MM Cash Flow: $2.2MM. Long-Term Debt: $2.6MM sn Cash: $3.4MM Recent Price: $2.00 sumone sme FD S/O: 8.6MM Market Capitalization: Enterprise Value: $15.3MM evRevenue OB a Price/Earnings: 10.8x os FITLIFE®
Slide 14: Company History
FTLF Company History 39% Annual Growth 2010-2012 August 2009 19,000 John Wilson Named CEO 17,000 June 2012 13,000 - ; 11,000 FirstinternationalOrder 499 ———— 7,000 - ml 5,000 July 2013 2009 2010 2011 2012 Launched SirenLabs® oO a Net Income (Loss) —— 2,000 September 2013 - 21} aa (2,000) 2011 2012 N
Slide 15: Revenue Trends
FTLF Revenue Trends Revenue — 39% annual growth 2010-2012 excluding non-recurring* — 14 quarters of year-over-year growth through 3Q 2013* — 3Q 2013 Revenue — 18% increase excluding non-recurring* — Nine months 2013 revenue — 27% increase excluding non-recurring* 6,500,000 F ™Revenue ®non-recurring
Slide 16: Target Operating Results
FTLF Target Operating Results 3-5 Year Targets 3Q 2012 3Q 2013 Gross Margin 33% to 37% 35.6% 35.8% Operating Expenses 23% to 28% 25.4% 25.9% Net Margin 8% to 10% 10.2% 9.9% — FITLIFE@
Slide 17: Gross Margin
FTLF Gross Margin Gross Margin — Target 33% to 37% — 3Q2013-35.8% — Consistently within or above targeted range 40% 35% 30% 25% ' 20% 12010 202010 30.2010 492010 102011 292011 32011 492011 12012 292012 302012 en FITLIFE@
Slide 18: Net Margin
FTLF Net Margin Net Margin — Target 8% to 10% — 3Q2013-9.9% — Consistently within or above targeted range 8% co | -2% 192011 2Q2011 302011 1 1Q2012 2Q2012 3Q2012 4Q2012" 102013 2Q2013 3Q2013 12% 17% * 40,2012 includes approximately $700 tax benefit. Excluding the tax benefit, net margin was (3%) — F
Slide 19: Balance Sheet
Balance Sheet FTLF Adjusted Cash* Accounts Receivable DsOs Inventory Turns Debt Dec. 2012 Sept. 2013 {in 000’s) {in 00's) $937 $3,428 $969 $1,526 26 28 $3,685 $2,494 44x 7.8x - $2,555 Details Target 30 days Target 4 to 6 turns * September 2013 cash balance reduced by $2.6 million for redemotion of p
Slide 20: Investment Highlights
FTLF Investment Highlights Premium manufacturer of innovative and proprietary nutritional supplements for health conscious consumers #1 vendor in GNC franchise system Less than 20% penetration into total GNC door count Scalable Brand-Centric Growth Model Successful track record of launchingand build
Slide 21: Contact Information
FTLF FITLIFE@ Contact Information FitLife Brands, Inc. 4509 S 143rd Street, Suite 1 Omaha, NE 68137 www.FitLifeBrands.com Investor Relations: Dave Mossberg (817) 310-0051 Company Confidential