Fitlife Brands, Inc. · NASDAQ:FTLF
Fitlife Brands — Investor Presentation (May 2021)
16 slides from Fitlife Brands's investor presentation, May 3, 2021
Slide 1: FitLife Brands
FITLIFE@ NDS Kip moons (ee NUTROLOGY Cy iSatori ENERGIZE bogenetic
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: Overview of FitLife Brands, Inc. (FTLF)
Overview of FitLife Brands, Inc. (FTLF) Our Company Our Brands FitLife Brands develops and markets nutritional supplements under nine different brands The Company primarily competes in the sports nutrition and diet categories, with more recent efforts to expand in the general health category Histori
Slide 4: We sell our products through wholesale partners as well as directly to consumers online
We sell our products through wholesale partners as well as directly to consumers online Our Wholesale Partners Our Online Channels GNC walimart>'< Live WELL “gy theVitamin Shoppe amazon ebay Walmart.com FitLifeBrands.com iSatori.com NutrologyOnline.com
Slide 5: Our transformation began in early 2018
Our transformation began in early 2018 $ millions @ TM revenue @ UTM net income + Significant sales decline + Several quarters of negative + Significant cost reduction + Development of new e- Increased focus on new product EBITDA and net income —— z [7 development a *+ Company in default on debt ee
Slide 6: Multi-pronged investment thesis
Multi-pronged investment thesis ORE OMEORORS) Profitable, rapidly growing e-commerce business Relentless focus on shareholder value creation Compelling cash generation and strong balance sheet allow the Company to pursue accretive acquisitions NOL carryforwards shield the Company’s growing profitabi
Slide 7: Our rapidly growing online business accounts for more than 20% of total revenue
$ millions Online as % of total revenue (6) Our rapidly growing online business accounts for more than 20% of total revenue @ Wholesale revenue ®@ Online revenue CAGR 2018-2020 12.8%
Slide 8: Increased e-commerce revenue results in stronger gross margins
@) Increased e-commerce revenue results in stronger gross margins Total company gross margin Percent 43.2% 41.3% As our rapidly growing online business becomes a larger 39.5% percentage of the Company’s total revenue, we expect gross margins to continue to expand 2018 2019 2020 Online as % of total
Slide 9: Strong and consistent Amazon subscriber growth
©) Strong and consistent Amazon subscriber growth Number of active subscribe and save customers 5,000 3,000 2,500 2,000 4,500 4,000 3,500 oe [+502 1,000 TReeeeel Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr 6 ° 2019 2020 2021
Slide 10: Relentless focus on shareholder value creation
High insider ownership * CEO and entities he controls own 57.7% of shares ona fully diluted basis Other employees and insiders own an additional 3.4% of outstanding shares CEO compensation heavily weighted to RSUs that vest only when increasing share price targets are achieved, and options that have
Slide 11: Compelling cash generation and strong balance sheet...
6) Compelling cash generation and strong balance sheet... $ thousands Net income Free cash flow 10,000 8,714 sin 6,000 Cash flow from ops 2,261 5,721 cai Capex (divestiture) (4) - - 4,000 2,698 Fi 2,000 ree cash flow 262 2,261 5,721 509 0 = Business has minimal capex requirements 2018 2019 2020 2020
Slide 12: ...allow the Company to pursue accretive acquisitions
6) . .. allow the Company to pursue accretive acquisitions Objectives Efforts to date * Acquire brands that compete in * Since embarking on acquisition campaign in 2019, the complementary product categories, target new customer demographics, or bring incremental e-commerce skillset + Where possible,
Slide 13: NOL carryforwards shield the Company's growing profitability from taxes
Oo) NOL carryforwards shield the Company’s growing profitability from taxes $ thousands ee eotoaes ecizi Pre-tax income 2,705 4,268 Cash tax expense (refund) 11 7 (36) NOL balance 28,000 25,900 21,900 * The Company will have minimal federal cash tax obligations on the next $21.9 million of taxable i
Slide 14: Attractive valuation metrics
6) Attractive valuation metrics Current valuation Other metrics/data points Common shares outstanding 1,094,690 As of April 30, 2021 Revenue growth Common shares underlying dilutive warrants 35,870 As of April 30, 2021 + 1-year (2019-2020): 11.5% ‘Common shares underlying dilutive vested options 79,
Slide 15: Five-year stock chart
Five-year stock chart Price per share Returns (as of April 30, 2021): * l-year: 344% * 2-year: 479% * Since management change: Note: All closing prices adjusted for the effects of the reverse/forward split that became effective on April 16, 2019 15
Slide 16: Summary
Summary Oo & Ooo Profitable, rapidly growing e-commerce business Relentless focus on shareholder value creation Compelling cash generation and strong balance sheet allow the Company to pursue accretive acquisitions NOL carryforwards shield the Company’s growing profitability from taxes Attractive va