Fitlife Brands, Inc. · NASDAQ:FTLF
Fitlife Brands — Investor Presentation (March 2024)
22 slides from Fitlife Brands's investor presentation, Mar 15, 2024
Slide 1: Investor Presentation March 2024
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Slide 2: Disclaimer
Disclaimer Forward-looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements involve risks, uncertainties and assumptions, are based on the current estimates and assumptions
Slide 3: FitLife Brands sells 300+ SKUs across 13 brands
FitLife Brands, Inc. (Nasdaq: FTLF) sells 300+ SKUs across 13 brands in both of Primary wholesale and online channels of Secondary Other ‘Our Brands Description #ofSKUs GNC ___Wholesale__Online Premium general health and weight loss 46 v v & Premium sports nutrition 73 ov v sno Gums Premium weight l
Slide 4: We sell through wholesale partners and directly to consumers online
We sell our products through wholesale partners as well as directly to consumers online Our Wholesale Partners PIMeE WELL ¥CvSs VW theVitamin Shoppe Our Online Channels amazon coupang Walmart.com iHerb Brand Websites: ebay FitLifeBrands.com iSatori.com NutrologyOnline.com hm DrTobias.com x eles] All
Slide 5: Investment thesis
Investment thesis a Proven management team that is aligned with @ Compelling financial performance B Growth potential
Slide 6: Management team of industry veterans and accomplished executives
@ Management team is comprised of capable industry veterans and accomplished executives from other industries Dayton Judd, Chief Executive Officer + CEO since Feb ‘18 from Brigham Young University * Current Chairman of FTLF Jenna Sinnett, Chief Operating Jakob York, Ct Officer COO since Oct ‘15, BS
Slide 7: Our transformation with our current CEO began in early 2018
@ Our transformation with our current CEO began in early 2018 Total Company LTM Revenue and Adjusted EBITDA | $, millions } SLIM Revenue mLTM Adj EOTDA oa. . . 52-53 so | aecine reduction + Continued growth ef ontne business A rd : netincome : 40 | * Company in defaute debt reduction including closi
Slide 8: FitLife's transformation has delivered significant equity value to shareholders
@ FitLife’s transformation has delivered significant equity value to s| ‘Split Adjusted Price Per Share $25 Annualized Returns (as of March 1, 2024): $20 * Lyear: 19% + 2-year: 28% + 3-year: 53% $15 + Ayear: 61% + S-year: 74% $10 i fe $0 2016 2017 2018 2019 2020 2021 2022 ‘on December 8, 2021; inclu
Slide 9: Significant insider ownership, especially by CEO
@ FitLife has significant insider ownership, especially by cto % of Total Common Shares Outstanding | com * CEO and entities he controls own 56% of shares currently outstanding, creating strong alignment of incentives * Other employees and insiders own an — additional 3% of outstanding shares ™CEO O
Slide 10: Investment thesis
Investment thesis a iG Proven management team that is aligned with sh @ Competing fi B Growth potential
Slide 11: Compelling margins driven by differentiated brands and products
Compelling margins are driven by differentiated brands and products Examples of products with strong advocacy from GNC franchisees 50% 40% 30% 10% YTD Q3 2023 Margins 40.8% 19.7% Gross Adj. EBITDA Margin = Margin PUMP GNC franchisees promote FitLife products in store because of: a. High and consiste
Slide 12: Capital light business, low leverage, and NOL tax carryforwards
@ N Capital light business, low leverage, and net operating loss (NOL) tax carryforwards in the US and Canada result in strong cash flow generation Business has minimal capital slow leverage, used only for .and sizable NOL balances to expenditures... acquisitions... reduce cash tax liability Capital
Slide 13: Growing online business with strong subscriber base
@ Growing online business with strong subscriber base underpins current financial performance Total Company Revenue | $, millions } CAGR MH Wholesale revenue 71D. Q3 2018 1 Online revenue YTD Q3 2023 24% 100% 90% 80% 70% ma 20.7 60% 477 ai2 166 50% 175 a2 40% 30% 20% a1 10% P a 67 03 a ies Over 2036
Slide 14: Investment thesis
Investment thesis iG Proven management team that is aligned with sh @ Compelling financial performance B Growth potential
Slide 15: Strong Industry Growth Tailwinds
Source: Grand View Research, CAGR 2023 - 2030 9.1% 10.4% B Strong Industry Growth Tailwinds Estimated Dietary Supplement Market Size $, billions & Rest of the world 400 327 300 200 178 248 2 100 net 79 54 0 2023 2030 Large and growing industry demonstrates organic growth potential of existing brands
Slide 16: Industry fragmentation creates opportunity for inorganic growth via M&A
G w Industry fragmentation creates opportunity for inorganic growth via M&A/consolidation Consolidation Opportunity Opportunity for “multiple arbitrage” via consolidation of smaller brands in industry Typical Enterprise Value / EBITDA multiples Strong Deal Flow Our team and infrastructure make us a
Slide 17: FitLife M&A Example: Nutrology
B FitLife M&A Example: Nutrology® Deal Overview * Closing date: April 7, 2021 * Total consideration: $529K (all cash) + Investment rationale © Capitalize on growing interest among consumers in clean, healthy, and plant-based supplements © No incremental overhead needed — absorbed in existing infrast
Slide 18: FitLife M&A Example: Mimi's Rock
(3 FitLife M&A Example: Mimi’s Rock” Deal Over * Closing date: February 28, 2023 * Total consideration: $17.1 million ($4.6 million cash, $12.5 million debt) * Investment rationale ©. Increase exposure to general health and wellness supplements and online sales channels Opportunity to unlock value q
Slide 19: FitLife M&A Example: MusclePharm
B FitLife M&A Example: MusclePharm® Deal Overview Closing date: October 10, 2023 Total consideration: $18.5 million ($8.5 million cash, $10 million debt) Investment rationale ©. Strong brand and broad consumer awareness resulting from tens of millions of promotional spend poured into the brand prior
Slide 20: Summary
Summary a Proven management team that is aligned with share 2 Competing financial per B Growth potential Please contact us at investor @fitlifebrai if you have any questions.
Slide 21: Appendix
Appendix @
Slide 22: Non-GAAP Reconciliations
Non-GAAP Reconciliations FITLIFE BRANDS, INC. ‘CONDENSED CONSOLIDATED STATEMENTS OF INCOME $, USD thousands 2016 2017 2018 2019 2020 jevenue 25314 17,799 17077 1936 22,111 Cost of goods sold 10,332 x 38s profit (Operating expense: Selling, general and administrative gaan 6023 5,53 Impairment of inta