Fitlife Brands, Inc. · NASDAQ:FTLF
Fitlife Brands — Investor Presentation (February 2014)
21 slides from Fitlife Brands's investor presentation, Feb 6, 2014
Slide 1: Investor Presentation | February 2014
FTLF FITLIFE@ Investor Presentation | February 2014 Company Confidential
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: 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 5: Our Brands
Our Brands Innovative Weight Loss, General Health and Sports Nutrition Supplements Precision Formulations for Professional Muscular Development Performance Enhancing Supplements for Fitness Enthusiasts “= SirenLahs noe GWE Essential Support for Accelerated Fitness and Nutritional L i Goals company C
Slide 6: Revenue Mix
FTLF Revenue Mix ™@ Sports Nutrition — 69% Pre-, Intra- and Post-Workouts Support for: Energy, Strength, Endurance, Mass, Performance, Recovery Revenue by Category M@ Weight Loss — 28% Support for: Thermogenic Energy, Metabolism, Toning, Appetite Control, Focus/Alertness, Diuretics, Mood, Carbohydra
Slide 7: Competitive Advantages
FTLF Competitive Advantages Focus on Innovation — 8to 10 new products every 6 months — 25% of annual revenue from new products — Extend and refresh existing product lines Scalable Brand-Centric Growth Model — Successful track record of launching and building new brands Strong Brand Equity — Customer
Slide 8: 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 9: GNC Distribution Footprint
FTLF GNC Distribution Footprint GNC Holdings Current Penetration by Segment for FitLife Brands, Inc. Domestic Franchise Domestic Franchise 984 US Stores 800+ US Stores 80%+ Penetration 300+ Customers International Franchise International Franchise 1,955 Stores 250+ Stores 50+ Countries Less than 20%
Slide 10: Brand Strategy and Development
Brand Strategy and Development 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 Now 4=SirenLahs GUN GMIE Next nies GNC C
Slide 11: Snapshot
FTLF Snapshot Founded: 2006 / New Mgmt 2010 Ticker: FTLF (OTCBB) Headquarters: Omaha, NE Recent Price: $2.30 Employees: 15 Shares Out: 8.1MM Revenue: $19.4MM FD S/O: 8.6MM Earnings: $1.5MM Market Capitalization: $18.6MM Cash Flow: $2.2MM Enterprise Value: $17.8MM Long-Term Debt: $2.6MM EV/Revenue: 0
Slide 12: Company History
FTLF Company History 39% Annual Growth 2010-2012 August 2009 19,000 ° John Wilson Named CEO 17,000 15,000 June 2012 13,000 | 11,000 First International Order 9,000 = 2. i a July 2013 5,000 2010 2011 2012 Launched SirenLabs® >000 Net Income (Loss) n September 2013 (2,000) 2014 Name change to (4,000)
Slide 13: 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 7,000,000 6,000,000 5,000,000 4,000,000
Slide 14: Target Operating Results
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% or FITLIFE@ 4
Slide 15: Gross Margin
FTLF Gross Margin Gross Margin — Target 33% to 37% — 3Q 2013 - 35.8% — Consistently within or above targeted range 40% 35% 30% 25% 20% 15% 10% 5% 0% Q111 Q211 Q311 Q411 Q112 Q212 Q312 Q412 Q113 Q213 Q313 Company Confidential FITLIFE@ 1s
Slide 16: Net Margin
FTLF Net Margin Net Margin — Target 8% to 10% — 3Q2013-9.9% — Consistently within or above targeted range 20.0% 15.0% 10.0% + 5.0% + 0.0% Q1.2011 22011 3 2011 QABBA1 a1 2012 Q22012 93 2012 a4—D12 Q1 2013 a2 2013 a3 2013 5.0% -10.0% -15.0% -20.0% * 4Q 2012 excludes tax benefit of approximately $700K
Slide 17: Balance Sheet
FTLF Balance Sheet Dec. 2012 Sept. 2013 (in 000’s) {in 000’s) Details Adjusted Cash* $937 $3,428 Accounts Receivable $969 $1,526 DSOs 26 28 Target 30 days Inventory $3,685 $2,494 Turns 44x 7.8x Target 4 to 6 turns Debt : $2,555 * September 2013 cash balance reduced by $2.6 million for redemption of
Slide 18: 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 19: 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
Slide 20: Brand Top Sellers
Brand Top Sellers CLA/Omega 3-6-9 body toning supplement to help target and tone the inches. ‘orSrntas 24-hour natural Low stimulant testosterone stack metabolism for daytime and booster with nighttime clinically studied support. amounts of key thermogenic & diet ingredients. Company Confidential Ho
Slide 21: 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
FitLife Brands — Investor Presentation (February 2014) on 6ix