Fitlife Brands, Inc. · NASDAQ:FTLF
Fitlife Brands — Investor Presentation (November 2013)
18 slides from Fitlife Brands's investor presentation, Nov 21, 2013
Slide 1: FitLife Brands Investor Presentation November 2013
FITLIFE® FitLife Brands, Inc. (OTCBB: FTLF) Investor Presentation November 2013 © 2013 FitLife Brands, Inc.
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 news release. Such fac
Slide 3: About FitLife Brands, Inc.
About FitLife Brands, Inc. * Manufacturer of innovative and proprietary FitLife Brands “ge (OTCBB:FTFL) nutritional supplements Foundsd 2006 + More than 50 dietary supplements that Head Office Omaha, NE promote sports nutrition, improved Recent Price (11/06/13) $2.00 52-Week Range $0.80 - $2.90 Fisc
Slide 4: Company History
Company History August 2009 June 2012 July 2013 September 2013 John Wilson Named CEO First International Distribution Launched SirenLabs Name Change to FitLife Brands 19,000 17,000 15,000 13,000 11,000 9,000 7,000 5,000 (in ,000's) 2009 2010 2011 2012 Total Revenue 2,000 Net Income (Loss) r boo = 20
Slide 5: Investment Thesis
Investment Thesis + Double Digit Revenue Growth, with Multiple Avenues for Continued Growth - From 2010 to 2012, revenue has more than doubled from $8 million to $18 million. + Leading Brand in GNC Franchise Locations + Broad Established Customer Base - FitLife sells to more than 300 distinct GNC fr
Slide 6: Management and Board
Management and 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 distribution rel
Slide 7: Products and Positioning
Products and Positioning * Value-added manufacturer of proprietary formulations that drive improved athletic performance, support weight loss and promote general health * Successful track record of launching innovative products and developing entrenched brands for evolving customer needs * Sincere c
Slide 8: Products and Positioning
Products and Positioning * Scalable “brand-centric” growth model ¢ Pioneered the use of collaborative “franchise-exclusive” brands, which continue to drive revenue growth both domestically and internationally *« NDS, PMD and SirenLabs are dedicated premium franchise-exclusive brands in the GNC syste
Slide 9: Market Opportunities
Market Opportunities According to Nutrition Business Journal's 2012 Supplement Business Report, the industry generated over $30 billion in sales in 2011 and $28.1 billion in 2010. It is projected to grow at an average annual rate of approximately 6.0% through 2020. Sports nutrition products represen
Slide 10: Distribution Growth Opportunities
Distribution Growth Opportunities GNC Domestic Franchise Stores: 80% Penetration — 1,000 doors potential — FitLife Brands exclusively distributes three established produce lines in over 800 doors GNC International Franchise Stores: 12% Penetration — 2,000 doors potential — FitLife Brands exclusively
Slide 11: Product Line Extension Opportunities
Product Line Extension Opportunities Continuous Innovation — 25% of sales generated from products introduced in past 24 months PAD Expanded SKU Count - 29 new products launched in 2013, 18 new in 2012 “= SirenLabs Core Active introduced in 2009 SirenLabs introduced in June 2013 (GUA ABIE GNC Corpora
Slide 12: Revenue Trends
Revenue Trends Revenue - 49% annual growth 2010-2012 - 14 quarters of y-o-y growth through 3Q13* - 3Q13 Revenue - 18% increase excluding non-recurring* - Nine Months 2013 Revenue - 27% increase excluding non-recurring* 6,500,000 5,500,000 4,500,000 3,500,000 2,500,000 | | l | 1,500,000 | O i - 1Q 1Q
Slide 13: Targeted Operating Results
Targeted Operating Results 3-5 Year Targets 3Q12 3Q13 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%
Slide 14: Gross Margin
Gross Margin Gross Margin —Target 33% to 37% - 3Q13 -35.8% - Consistently within or above targeted range 40% 35% 30% 25% 20% 1Q 2010 2Q 2010 3Q 2010 4Q 2010 1Q 2011 2Q 2011 3Q 2011 4Q 2011 1Q 2012 2Q 2012 3Q 2012
Slide 15: Net Margin
Net Margin Net Margin —Target 8% to 10% - 3Q13-9.9% - Consistently within or above targeted range -2% —1Q 2011-22011 3.2011 41 it 4Q 2012 2Q 2012 3Q 2012 -4Q 2012 1Q 2013- 2Q 2013 3Q 2013 * 17% * 40.2012 includes approximately $700 tax benefit. Excluding the tax benefit, net margin was (3%)
Slide 16: Balance Sheet
Balance Sheet (in ,000’s) Dec- 2012 Sep- 2013 Details Adjusted Cash* $937 $3,428 Accounts Receivable $969 $1,526 DSOs 26 28 Target 30 days Inventory $3,685 $2,494 Turns 4.4x 7.8x Target 4 to 6 turns Debt “ $2,555 * September 2013 cash balance reduced by $2.6 million for redemption of preferred stock
Slide 17: Summary
Summary + Double Digit Revenue Growth, with Multiple Avenues for Continued Growth - From 2010 to 2012, revenue has more than doubled from $8 million to $18 million. + Leading Brand in GNC Franchise Locations + Broad Established Customer Base - FitLife sells to more than 300 distinct GNC franchise ow
Slide 18: Contact Information
Contact Information FitLife Brands 4509 S 143rd Street, Suite 1 Omaha, NE 68137 www. fitlifebrands.com Investor Relations: Dave Mossberg — (817) 310-0051
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