Fitlife Brands, Inc. · NASDAQ:FTLF
Fitlife Brands — Investor Presentation (June 2015)
19 slides from Fitlife Brands's investor presentation, Jun 3, 2015
Slide 1: Investor Presentation | June 2015
FTLF FITLIFE@ Investor Presentation | June 2015
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 presentation. Such fac
Slide 3: Investment Highlights
Investment Highlights Premium manufacturer of innovative and proprietary nutritional supplements for sports nutrition, weight loss and general health Proven expertise creating, differentiating and launching successful brands Opportunity to expand revenue 5x within GNC system * Leading third-party ve
Slide 4: Snapshot
Snapshot Founded: 2006 / New Mgmt 2010 Headquarters: Omaha, NE Employees: 17 Revenue: $20.0MM (ttm) Earnings: $1.7MM (ttm) Long-Term Debt: $1.8MM (March 2015) Cash: $4.4MM (March 2015) Ticker: FTLF (OTCBB) Recent Price: $1.69 FD S/O: 8.2MM Market Capitalization: $12.8MM Enterprise Value: $10.2MM EV/
Slide 5: What We Do
What We Do Premium provider of nutritional supplements for: * Sports Nutrition — 68% Energy, Strength, Endurance, Mass, Performance, Recovery + Weight Loss — 28% Metabolism, Toning, Appetite Control, Meal Replacement * General Health - 4% Inflammation, Joints, Vitality FITLIFE@
Slide 6: What We Do
What We Do Premium provider of nutritional supplements for: ° Sports Nutrition — 68% Energy, Strength, Endurance, Mass, Performance, Recovery * Weight Loss — 28% Metabolism, Toning, Appetite Control, Meal Replacement * General Health — 4% Inflammation, Joints, Vitality FITLIFE@
Slide 7: What We Do
What We Do Premium provider of nutritional supplements for: ° Sports Nutrition — 68% Energy, Strength, Endurance, Mass, Performance, Recovery ° Weight Loss — 28% Metabolism, Toning, Appetite Control, Meal Replacement * General Health - 4% Inflammation, Joints, Vitality FITLIFE@
Slide 8: How We Compete
How We Compete Core Competency in the creation and launch of differentiable, successful brands that offer compelling value proposition for customers and end users * Partners get brand exclusivity, channel discipline, and strong economics ¢ nd users get high quality and effective products with truth-
Slide 9: Large and Growing Addressable Market
Large and Growing Addressable Market Nutritional Supplement Market — $32B Annual Sales* | Specialty Mass | Direct + Online | Multi Level | Practitioners | Retail Market Marketing $11.8B $9.3B $3.5B $5.3B $2.7B According to the Nutritional Business Journal, the Sports, Meal Replacement and Specialty
Slide 10: Specialty Retail Brand Strategy
Specialty Retail Brand Strategy SEE init iia Franchise Stores | Corporate Stores Specialty Stores —CORE ACTIVE ig Perfomance Series Distribution Partners Win Brand exclusivity, channel discipline, strong margins and sales support Consumers Win Authentic brands with quality products, efficacy and tru
Slide 11: Disciplined Growth Strategy
Disciplined Growth Strategy GNC Holdings Current Penetration by Segment —_Grgwth Drivers Domestic Franchise Domestic Franchise 1,060 US Stores 900+ stores t 85%+ Penetration SK 300+ Customers U.Count International Franchise _‘!nternational Franchise 2,100 Stores 300+ stores t D Count 50+ Countries L
Slide 12: Experienced Management Team & Board
Experienced Management Team & 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 di
Slide 13: Company History
Company History August 2009 25% Annual Growth 2010-2014 , 25,000 John Wilson Named CEO June 2012 20,000 First International Order July 2013 15,000 Launched SirenLabs® September 2013 10,000 Recap, reverse split, name change to FitLife Brands, Inc. #000 Hi March 2014 2010 2011 2012 2013, 2014 Transiti
Slide 14: Transition to GNC Centralized Distribution
FTLF Transition to GNC Centralized Distribution Mandated by GNC, we transitioned from direct model to GNC-centric distribution model in May 2014 for everything but protein, which went in mid-September While management expects no material ongoing impact on the business, the transition did impact cert
Slide 15: Target Operating Results
Target Operating Results 3-5 Year Targets 1Q 2014 1Q 2015 Gross Margin 33% to 37% 37.2% 41.0% Operating Expenses* 23% to 28% 22.6% 41.4% Net Margin 6% to 8% 14.1% -1.1% Non-GAAP Net Margin* 6% to 8% 15.5% 9.4% Positive effect of indirect distribution model on margin levels: * Reduction in overall di
Slide 16: Investment Highlights
Investment Highlights Premium manufacturer of innovative and proprietary nutritional supplements for sports nutrition, weight loss and general health Proven expertise creating, differentiating and launching successful brands Opportunity to expand revenue 5x within GNC system * Leading third-party ve
Slide 17: Proposed Merger with iSatori, Inc.
Proposed Merger with iSatori, Inc. FitLife has entered into a definitive agreement and plan of merger to acquire all of the outstanding shares of iSatori, Inc. (OTCBB: IFIT) in an all-stock transaction. Deal Summary ¢lssue 4 million shares and assume net debt of $900K * Company option to repurchase
Slide 18: Non-GAAP Reconciliation
4 Non-GAAP Reconciliation 1Q 2014 1Q 2015 {in 000’s) (in 000’s) Net Income (loss) ($42) $893 Non-GAAP Net Income (Loss) Reconciliation Adjustments: Stock based compensation 402 86 Non-GAAP Net Income $360 $979 Weighted average shares, diluted 8,184,126 8,527,826 Non-GAAP EPS, diluted $0.04 $0.10 FIT
Slide 19: 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: Jeff Elliott (972) 423-7070 Dave Mossberg (817) 310-0051 19