FTLF - Earnings call transcript Q3 2024

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Operator

Good day, and welcome to the FitLife Brands Third Quarter 2024 Financial Results Conference Call. [Operator Instructions] It is now my pleasure to turn the floor over to your host, Dayton Judd, CEO of FitLife Brands. Sir, the floor is yours.

Dayton Judd

Great. Thank you, Paul. welcome FitLife's to Earnings Quarter like Call. would everyone Third to XXXX I taking join time appreciate the We you to us afternoon. this

and for EVP, on previous our me provide up York; will the of this is a Ryan company FitLife's follow FitLife's we open Hansen. about business, pattern call earnings opening call. parts the Joining overall different similar then Today, as commentary will CFO, as Q&A. call some we and to Jakob the I'll our well

online X% last gross this revenue in with contribution performance, level Legacy wholesale in to Total less a for XX% million, during quarter and third start increased increasing as $X.X a XXXX year-over-year XX% and XX% from revenue and Approximately we and advertising income So in expanded increased increasing customers FitLife both online This with expense, let Gross regard revenue. overall, an from a the sales. third the basic EPS million, FitLife. of fully margin $XX.X our XX% expanding diluted XX.X% or adjusted and revenue the revenue was XX% gross decline XX%. overview for represents increased. from the quarter increase total Net XX% which was revenue increased of year-over-year and define marketing for margin with company to decline, EBITDA profit $X.X XXXX EBITDA quarter XX%. of EPS and Contribution, wholesale to increased from online me XX% Legacy LTM Despite profit increasing million. year. of to XX.X% with gross With million, increased revenue bringing year-over-year brand XX% revenue to which increasing XX% Adjusted $XX XX% to gross was X% XX%. total wholesale decline XX.X%. year the X%, profit

foot declines see our we locations, continue by in On brick-and-mortar primarily wholesale in to driven products lower of retail the side, traffic. and sales closures store

are migrates each of the the pace and to a That as online profitable shop now all for encouraged revenue wholesale decline is Also, more company. for more FitLife are online customers while percentage some However, and of more online metrics revenue has is this to reason is that regularly, the choose of part in significantly up of quite and we of point revenue the make we year-over-year, saying the past down. profitability and months the Legacy decline the single is why the four moderated lost digits. in revenue

the refer to to transaction in on Rock we the what Moving or Mimi's MRC. as acquired brands

$X.X February a basis. of the as this on year-over-year XX.X% XX.X% contribution provide approximately was increases reminder, color to within is MRC so XX.X%. It XX.X% Total gross MRC's a third portfolio. percentage unusual profitability and XXXX. flat, a million, acquired XX, company XXXX in of a a from the quarter for while revenue As is increased on flat let margin increased on MRC we from the see strong is to me more revenue to bit somewhat brands revenue year-over-year

love a Dr. revenue Tobias now more Tobias the consists increased for continue for optimize Dr. to for revenue the represents seeing brands XX%. of brand the a while X% which spend. skincare called during XX% the We Revenue than Tobias, reduce advertising revenue brands. up MRC brand three we even go supplement was down of skincare MRC's So two Dr. and quarter, brands: little while brand smaller and

in negative skincare a experiencing a acquisition they countries. were margins and and and negative some is early exited sold contribution. in the brands in the Regarding brands, in were gross of gross And at markets these margin raised the other almost higher the skincare of revenue, The time number in lower all all of prices changes XXXX, much contribution geographies number markets. positive geographies. of but this unfortunately, we To problem, result address

you though in in strong $X.X for contribution and why MRC gross this LTM roughly to So increases was third contribution within In is quarter MRC, revenue see during million, terms, the profit $X.X explains reminder, contribution XX part dollar MRC. to flat. favorably million, compares we With bringing last months and for regard of as which very the approximately acquisition assets to in October MusclePharm out paid year. $XX.X of million a only after we the purchased even MusclePharm, bankruptcy the

announced press convenience placement number brand. of supplement doors. in sales we third primarily tables both quarter the since month a recently seasonality sequentially orders the you FitLife to declined recent revenue more in from and Legacy compared for third slightly wholesale quarter, More revenue the quarter, some that release, compared hundred shift percentage total lower for grocery MusclePharm October, earnings Online the That new wholesale the for describe for than same of can the the customer customer totaling slipped detail second Gross MRC. into and slightly. into for in with MusclePharm contribution chains second gained while bought to in customers resulted some revenue in wins in as a to wholesale October. the MusclePharm higher I'll see due bars of increased category, slightly along During being revenue revenue orders declined that for sequentially, that was several October have specifically, trend contribution In the regional also in but any customary other we quarter, shortly, our the slightly brand. margin is orders we and and MusclePharm in online

partner a We a licensing signed in Israel. agreement a with and recently also manufacturer

line a our Series, will The nutrition XXXX. products than We are high-volume during as new XXX first locations quarter Vitamin the initially pilot is anticipated recovery line about of of the that initially is line Shoppe pre-workout in to consist a very also protein excited intra-workout successful, premium shelf of XX sports permanent Series chain will months. and a period Pro the gain Shoppe of launch the exclusive to MusclePharm and more system-wide within for and nine pilot space Pro be Vitamin SKUs. will If

to of Series, existing we inventory. In Pro packaging for products a in the and as the existing out we've MusclePharm the line and of designing look completed our begin branding recently the early first refresh the quarter addition rolling sell through new will

give more a comments into Now few let before me moving Q&A. high-level

company to afternoon, exchange-traded an Close filed this closed to shelf market to put have XX% Sudbury I effective provide ever U.S. declared through Fund, that statement raise a the high our the When registration in to minutes degree to or in shelf statement. after SEC, the a flexibility are the capital. want registration largest inexpensive Capital wants place, company a shelf our registered few effective, company with the but take talk decision. a will eligible of scenario either sales companies shareholder, These offering. of by where they in a of permit by arises and a First, stock if

will years You at if can decides look company reason. diluting be of shares, the sell not good the to our shareholders a really be there and track that confident record over

current that are on putting to has having why effective equity, I while and hygiene, registration nor in we that an plans statement good is corporate conclude is will to company say So one any shelf neither just sell this place. just topic, Sudbury the

results scheduled interest flexibility sheet, company's quarterly $X.X approximately line end our or our The is increased leverage balance than of the levels, term and the our debt credit. combination since on balance the million adjusted cutting XX, a means with million EBITDA. loan third expense our since XXXX. reduction the $X.X the our $XX LTM quarter which no annual of Regarding strong At ended million second of of Fed million outstanding quarter approximately earnings. of amortization net million, rates $X.X current declining, more $X.X our financial $X.X in that of a the little X.Xx and on approximately is We outstanding million with is December revolving and cash

to well channels. expect to fourth everyone guidance the is say we year-over-year said, be remind selective quarter both Regarding will and won't still M&A commentary Last, growth fourth on plan our online than That the for that double-digit is opportunities the outlook deleveraging. as for provide specific and transactions don't specific other quarter, I and which we slowest provide than as generation we wholesale customary, remain to actively as pursue. and continued potential cash revenue about engaged other any EBITDA we reviewing in generally

opportunity right favorite this we means itself. nondilutive to are transactions is have accretive. rapidly by are wait don't balance potential with until to to sheet What strengthen but get continuing that the ones one deals our evidenced just do deals done, closed, that previously As be the we our rather patiently we the presents

So Paul, questions. with poll can you and that, for ahead go

Operator

coming the Askeladden from is Patel Samir first [Operator Instructions] And question from today Capital.

Samir Patel

the for revenues on the hadn't you disclosures parts of you disappointed guidance, thanks that to be call, the if but are off, on had you'd First know kind provide disclosures. individual super of the don't last incremental the next I the managed you business. helpful, mentioned Those double firms the XX over months.

a mentioned the scale kind rough be with the try tracking know of Is to scope of context, to little in. you So I you're towards maybe bit number that doors that opportunities? could or contextualize still you those guess I going of that figure?

Dayton Judd

for Samir, the Thanks, Yes. Yes. question.

lot of we're to question reality and of balls the lot don't have the There's air, answer kind hard know a a going a not we're wins. is we this in we're and going to look, to accounts wins there's because where have of is So going after, that right. where

accurately So predict. to it's really hard

not said, thing about that for that had expensive They're bars. obviously, bars they're right. Now is the we've items, recent the in. for dollar One primarily remember retailers the small by we're encouraged bring to to orders

don't us, the if we're what turns. a whole And for right. move they so looking But needle lot for -- they

and see Vitamin revenue the sell when partners. and kind nine get of we'll more how assortment, the that our those of be over very convenience of an Shoppe, bigger year. Obviously, gross and SKUs material So new can a amount much you into profit, course in a expensive grocery right,

will go contributing other goals. So a way with our toward to We're that partners. working long

We partners for we've in wholesale that XXXX. that talking been growth, about right, that time us significant for -- customers to other are have selling some

realm hard MusclePharm. precise it's Like precise. So give I of the certainly, for we be could us don't to me you I reality. for for if it's opportunity a think outside XXXX. be But for guessing to the revenue double number would really for I think MusclePharm there revenue is

both reason with the as the traction particularly we say recently that nutrition bars. had, kind specific very happy that's broadly we've sports So as shy to with well guidance. have we're of But line I from the with away the more

Samir Patel

That makes sense.

it saying, sounds -- opportunity trying mean the to would what cetera. put I the basically, of at, So not terms Vitamin material -- is, what particularly, Shoppe like in just is was obviously, material but -- what through I on and you're and sold so be needle et it you get number if like could to move a that's

Dayton Judd

Yes, absolutely, it be would right. material,

sure. for So

Samir Patel

not of today constraint. balance capabilities wanting company, is Perfect. on right. being question. kind the any discuss historically, kind terms organizational I to is of want in to that, air. constraints the then you've in about a too I One Okay. sheet, second have just is second small many a talked know just But on balls think of And you don't which a specifics your M&A. And two obviously the

really and you you're integration MusclePharm you on it a MRC So deal MRC feel So like close feel if like come well? you the along, to standpoint? like do doing do point at kind right could that of where were from seems

Dayton Judd

flow. to up referring need bring Yes. to able to in be do. off of everyone about just the kind of is to speed, we successfully Samir transaction there's things a deal you Yes, kind past, pull what we've is three talked to And

We have plenty of deal flow.

the at sheet a as we need goes. execute. we're able absorb a a the you place is be on deal. I Series And capacity, we're and is is I team where a MusclePharm, us, the the the think and heavy operationally there behind deal, so production. do it of behind Obviously, with us. more is the depend the bigger would size be. the balance great You our point far then as lifting right, can lifting balance Pro deal, look, of in need And do would definitely challenging But MRC, to could much to The done. sheet heavy it right. deal. rebrand need in The you the

third We valuation. look, data quarter. So to Both during I points. always on the I'll to do. there's negotiated terms engaged. in I you some sellers mean, I we actively with more just But terms ultimately give we of LOIs -- couldn't of two the passed mean are come or which

want back are right. deals, anyone So the we'll to expenses I don't call we as come There's at away of opportunity deals. we're actively do from in engaged. our thinking and lot sitting kind at of we for numbers waiting, get real acquisition-related look the to a of quarter a we And expenses, look that look and just the at work. And deals. merger always paying every lot other EBITDA you and there's lawyers and we're We right. table see

two tell I And Those you, deals So there's away deals aren't right deals actively the during from only I'll at. quarter. mentioned third we the pursuing we're now. walking looked

those of things. one just it's So

balance gets can bigger right, And better not better We're wait the the equity, at sheet looking always going issuing good thing will just be we taking everything. And is, the without your borrowing deal. better. fat swing we is and to deal the going about time the also to our will any wait We balance right from for that just right. for accommodate the We're pitch, sheet but bank. by the

be So actively engaged next to to anything and would will of are, we're have we're looking don't actively anything right. and happy report anticipate months, that find and the and with But deal. in we another don't couple to we're like report where there

Samir Patel

it liquidity just people to guess hear. have little a and just help to opportunity in have you the Sudbury mean, with any with valuation I about rather And completely mean, policy stock. regards to allowing I not even your I your shelf, or have agree bit, great good regards accumulate plans might the that with did by to That's might considered Awesome. of sell question more comment one you finally, you kind company's shares? a bit with to that having place. to or with help if it's sell you to little a I

Dayton Judd

Yes.

shelf. I couple little you asking A the of a bit things. So I'll that. appreciate go on Yes, deeper

Samir Patel

it's your I'm response guessing still is that best your idea.

Dayton Judd

yes, yes. So

I both, shelf the means that to slim. what whether right. stock, The up don't told the Having both. means set more the did there We can that sell registration, an right. you I right? shareholder no needing think once say, I would for stock. set as look, -- right, might can can the equity can the here's So shelf or a it likelihood be dilution it that very company you would about where week liquidity company of if be dilution, Or and is with existing stock, -- us up be mentioned beneficial raise lying to I where you sells for and shareholder it I you in a base do that

kind And I'm to the I managing to are Sudbury. of preparing stock so partner Sudbury and it the of part the makes shelf us sense. of that is predominantly second the do allows right, again, if sell that, Sudbury some same.

selling my If statement, stock. that no am I right. as not I as You'll a stockholder. I also would have right. that lot a be a listed I stock, own selling in of stockholder, personally in did, of intentions note selling I registration

buy the So but love talk there's some stock sense it the I liquidity. is get the to look, liquidity. investors not The can't at make we enough #X to point, when story, comment increase because may

think plans about. takes there's nothing This possible, imminent. make So but again, it's is something we to no step and that it immediate

Operator

Next Instructions] Shi ]. coming from is [Operator [Johnson question

Unknown Analyst

private and investor Shi, Johnson in I'm is Seattle. name based a My

few a for questions Dayton. have I So

M&A, just organic but you're So you to growth. through also that open mentioned growth, over through past not interactions

recent and engagement, MRC media of which plays accounts lots Protein two of lights of being BellRing I'm So and Tobias, competing seeing MusclePharm part especially per day. brands Built being I'm active like not acquisitions, is social not while, having one Dr. that, sure that having account like not having into I'm Dr. the Premier Tobias so seeing MRC, Bars, active. Instagram I'm sales. Meanwhile, how other and Brands seeing that and a MusclePharm social said social for or

a and is, And your media improves question Mimi's growth awareness growth on comments any on leads? does a social media for Or for strategy accretive in that play raising through strategy Rock? my your in accretive role MusclePharm will it growth? So play role organic social both

Dayton Judd

Yes.

of in lot best a embedded questions there's So do and there, my I'll answer them. to

same I advertising one or we're On advertising to -- and websites years. So for brands, type commercially, it one more for found, money in right, with so spend we of Google Facebook most is is monetizing our extensive Instagram, done generally will of to the traffic the been have on That's at the biggest that drive Amazon. kind social of thing we advertising about right, speaking, say have CEO a we obviously been with for of we've buck is, at terms this best way. on other bang our than on where we lot What for media occasion, We've where Ads, efforts, as X get advertising. money trying this brands. in and that spent had I've Amazon,

So we encourage of of community makes if as at hiccups means that view lately. right social sense. than some We've for people kind to least us, had to media buy, a now, more

go very haven't for look somebody there. short, get posting But at almost the that and access, we're and get back. engagement. go have with that that We're week we're and workouts going I and of the with issue day, deal. account, think an not There's through. and not story are working trying you decent Instagram to big If access most was and very, while. regularly, a every historically active supposed thing popular probably worried account got we posting that And confident very post, we're that the until you there to a look our if Long we It's to to used Meta back we're it there be happened, wasn't we're we right.

So of got engagement. workout can and every week, week the hey, do we that you amount this post, a decent here's

and Dr. not opposed to a to But use. of our Tobias, you thousands year as We look, we're X want sell we go have example, do So influencers we Amazon, if Tobias, followers that We with right, as on use whatnot social of for but Instagram traffic. don't consumers engage right. and to more we advertise hundreds way opposed to units million-plus media. media have on a social drive Dr. of

our with of we interactions on the have Amazon So makes that at customers marketing in terms there, least sense. platform, been if

Amazon guess with a long in should of best Meta, advertising, we of to track I things found active But expect in then more. been past. social terms more back way is some the saying see on in on And venues. media we and that once we've So other get ROI the have you

Unknown Analyst

So got it.

think a So larger than Amazon Costco social the gains in national return media is ad social revisiting of engagement. brand but basically, spend have magnitude? you open this But are or from lower awareness. for ad are lower and ad the on and chains open I media, could you spend returns terms much stage if a even it let's reaches social you Amazon means are higher return on on return to media spend to entry because Are community spend on some when say, into the ad at FitLife, accounts like, of larger primarily there's of

Dayton Judd

Yes.

it initiatives and again never right. with We tried I it something sure. or didn't X again, think the tried done. work, different tried we've once agency or it give like and It's we'll probably where we've a X X it over we to don't illusion or And for do it had that that. something want I so years the

So in this experimenting. this new always with We've but we've haven't much done season. we're teams things. detail, we football look, X always We're sports trying talked about sponsored MusclePharm

sponsoring in stadiums, because talk and football we but Air we're the been about Army think I Force football. can it we're it's sponsoring

and where things. payoff, lot for a and we're impact, We things. a efforts of and right, bang the So the try of we try biggest biggest and we our getting redirect try the towards measure our the spending We buck. lot do

money So we'll right. conclude and something never didn't yes, it would and But new do I because again, never once work, shifting things we're around. trying that constantly it we tried

Operator

The will ROTH. next from question McGowan from Sean be

Sean McGowan

a already time. Appreciate little getting advance a addressed I I circle of But to had this sell? call place to about the so, that. because this? And apologize to shelf. for existing these if the did an also on Was replacing in Like And on some question that the you've the ability there one? shelf trouble include Sudbury already back in just prior if is to

Dayton Judd

we've This not. is ever shelf. first the have had time we a Yes,

Sean McGowan

Helpful. Okay.

months. questions of MusclePharm Okay. bit What's more it most Are Pro first give Kind different? it of after do then. perhaps there? the a are line. line? are customer the on A other than Is XX couple higher for period? being us plan what about think talked differentiation? beyond to in that you the existing margins the Can that the You relative the expand the Is you Vitamin color they little importantly, it of XX-month what Shoppe point

Dayton Judd

Yes.

line, expense margins So existing would amount the fair higher of the be as promotional I think there'd well. although a be than

market GNC customer serious more the Series sports kind and or going long, a dramatically want pre-workout. buy But CX those right. for GNC pre-workout market biggest The right, What for. or seen, aficionado for that, right, more don't higher. branded or I higher they'd more been looking mean so are know the these more right? be time, that ingredients, ingredients sell of the is They'll ingredients. of the bells or nutrition this, those to Shoppe don't and more premium Cellucor end, Pro whistles, customer premium end considering higher with is Vitamin to The say terms of whatnot, has but we've a I or educated, consumer, right. reason stores, -- high-volume specialty mass I right, in looking right, our or higher that's known if in pre-workouts ingredients can So the you long quality kind retail mass protein, and isn't effectively the we've

a to So Vitamin like good of Shoppe. brand a into GNC take mass idea market a it be kind your style wouldn't chain or

didn't X are that brands, I do to X even that We And guess, that Again, what to to didn't brands it's so we consumer. like want sell exclusive that, have try GNC. and right. know we to

And ads. so yes, right. right. probably There a ads price. right. higher to marketing. services They're of they're have be heavily miles Again, ads will will They're once location launches, we marketing, higher again, ring, margin. ability higher we the that's in place on Shoppe pretty There within streaming dollar the right, invest this But generally will absolutely X carrying Vitamin be digital product,

So some and initiatives efforts them we environment. like to while may Amazon, the be the little store. right, drive that, there place, on we brick-and-mortar and to get in the It try put for let are very even marketing in well traction put first that will consumer them the don't

of yes, would a little state, different different a product. consumers margins a kind the Toyota market And be would there's of mass there's it's just steady kind be it's So bit Lexus like than brand. and they and of kind want on a bit higher

Sean McGowan

term And the this And does GNC exclusive? Like feel expansion? Vitamin longer how plan about how channel channel what's expansion? Shoppe for about

Dayton Judd

know. it's for Yes. Look, me hard to

exclusivity that know, GNC. the I all it I'm hesitate you to exclusive would we, is, The again, I then in kept intention we've more current Shoppe, period, our would it's sure take be we think have reason if broadly. X after successful brands Vitamin

because the I the decision that but But a So clients maybe, for company. stays and best relationship think we the at away think right, the the potential from is and the brands point, other we Series had have look and we'll GNC and for ways that. look with We'll we're facts performance. that at best that and exclusive Pro have at brands of make exclusive, for our still some and circumstances

spend then behind it that able so is putting and is on time it scale. right permanent gain focus it Our can the placement now launched and to getting

Sean McGowan

Right.

have you the my stores. press release of you decreases at Okay. Do And any kind then viability customers? was the the question counts other or customer in in the some of about these brick-and-mortar cited health of concerns

Dayton Judd

Yes. or say Did customers? companies you

Sean McGowan

These retail customers.

Dayton Judd

Look, I The bankruptcy. be think we in you know, company. November this month. Yes. so Vitamin They filed naive. won't earlier is Shoppe, Look, X, bankruptcy may

It's doing a their company, parent Group while bunch was as a of as they, was Franchise up the that of leverage Now loaded back. called which company, buyout fine. with are debt a part a

Vitamin have still, we Shoppe our right some right, Shoppe now, So is other from in Vitamin of brands. products

So them from else business the it's an that Every indication that usual. and We everyone them. customer. existing to in know them they're talked of sell from is industry people including as I've to, kind

they don't all all. any the up. parent but understanding So the parent, more my have a up needs clean on situation that's Shoppe, a of that's and ended there. at debt why to is where company of sure subsidiary things They're And the Vitamin I'm just details, XXX% they not

to looking this look, to minimize went us. I say the XX% bankruptcy before. say So of be the will do that revenue I like what it's reason them. we through what And an event, been in some we've do on we worry about when And is GNC impact they to there's if was know XXXX. through probably going of is our

or strategy the prior taking I very buying was distressed and hedge launching the investing, restructuring fund how manage So right, And of had its to large as risk. my fund control debt to bankruptcy kind through at of primary a set, prior kind that. been over whole FitLife whether worked done that's that opportunity we've background my taking to there, and

we Obviously, that So bankruptcy. before. we're in pretty bought assets and We've out MusclePharm of played space familiar with that. there were with those

So we're taking have. customers our that instability to impact might mitigate any financial of steps any

certainly we that but any easily can't be impact, not to absorb. no impact there saying be wouldn't will Now I'm there be clear,

hopefully, answers question. your So that

Operator

have Instructions] follow-up a [Operator Sameer Patel We coming Capital. from from Askeladden

Samir Patel

been So how because If they a previously, had paid, brand you was gotten challenge when who hadn't follow-up the burned that you MusclePharm. like had one on acquisition, just of mismanaged noted recall of did things of that. lot that I kind vendors a that

wins of run. guess you're ownership. about not you've wholesale kind you've so potential It's it seems being I to go your customers So sort of It's had accurate under the hey, that marketplace been pretty professionally and what that's convincing beyond that, like successful Would it's to optimistic say ability other these you out was. far? in new it that

Dayton Judd

question. regional you and obviously, permission, which Vitamin tell their Yes, disclosed accounts. some we with other was And just good than of mentioned I'll other I Shoppe, that these

customers it customers that those went of into used before with to bankruptcy. MusclePharm, Some are work

also we of they back so guys examples, even though in, that right, place product, we hey, right, have they're a say wins And right. But will getting kind back tenuous, and to of little about, POs they can those when we talk say I in. now we're have

took in of the company bought these, some look, So it October of We a literally XXXX. year, right.

Some them and started we in of I it XXXX, took until POs month. October XX of to talking last months got

bring we'll MusclePharm customers. gotten legacy a opportunity just any of had XXX of it So we'll we've way I products, customers but and look, it it now locations, back the or win But to in carried number, right, we situations bring that were like, where a never they're MusclePharm how saying, of we'll brand-new into those also and XXX even some goes. have kind guess long see previously we've then,

for right, all that So given kind of chance, they're us we the ask is can we a giving circumstances inherited. which

well. we've we've we're customers old with new pleased got now, wins got wins with and that customers as So

Samir Patel

brand thoughts any And I'm provide sell-through. big don't I want sort a qualitative on don't you rationale Yes. the of had then that lot brand, that to of details, Obviously, of this money part acquisition a lot spent that any sure endorsements. a a loyal lot marketing of but quantitative know, of was customers, celebrity on customers, big a a lot of was

And so of there of go kind out monetize had that opportunity spending that already this and to done. ad been some of kind being

resonating seeing wholesale data see you you're So from customers? of of that do do new it's of validation kind kind you partners, whatever that, see with these from

Dayton Judd

mentioned, of those I'm like they've if most shipments think and I all reason almost customers all not have cases, So still either say month, or or And of were shipped too think them POs. haven't placed placing or I X they like but mistaken, new early. last probably yet, X we of or the kind is that October I them confirmed that I of

to encouraged plan there. we And is business, pre-bankruptcy. that in mean significant also we're were for those very a other of the by retailer. they and we MusclePharm closely. actually, pretty we fact, one the I year, a right, online another that have wholesale of the watch said, seller sell-through bought And that we since customers So that we've had past previous, see

also back every getting what We're we're at back, with engaged before. was, but The growing, like was so them to them. more And continuing are they month, with were numbers again, selling we're near nowhere margins win us, which a good. for grow reasonable

weeks in So where have more month, had a absolutely don't than data have newer like But like will in sell-through. become you, that sell-through. with the yet few have I we're good that. seeing be last we these any watching customers literally on we for anxiously customers, But these products market

Samir Patel

hear. great then more. to one That's Okay. And

that scaling to the line the think you're as the need that grow you that that? doing the those of into But the SG&A? of wholesale you in the manage revenue terms think you How margin how of about sort SG&A people and just way, of like kind what way these you how as relationships, it here? advertising. like you're exactly some kind line? behind are do there, Just do So kind contribution contribution you but gross more to you how the I doing business of And Like organically do of by and you that scaling that about going MusclePharm with about think or to relationships? going advertising below SG&A think below are about goes need

Dayton Judd

think I lot whole incremental a Yes. of don't there's SG&A.

$X.X at I look million but about tend be about every SG&A here, you in if think numbers we just quarter. the quarter, every have again, of I of to don't me front

severance. little this if out higher. was think I some But we there quarter, you a were bit back

back net a present which a around right out we're $X.X that the kind number, you of is million. one-time severance from value the If severance event, of one-time amount

paid us where that and probably right. lot always been There's incremental pluses Amazon, well minuses. of a by some Amazon always So year right. are into a requirements and There's just We've the stuff, testing on more there's over digits. X are. sell a lets party our ago, unexpected That so third we products On completely them. getting was we unanticipated tested but

sometimes But is higher, don't we little open testing sometimes higher. So little legal have is a positions. a X

supply positions right. use we chain, body open and now, for another somebody in X have in one right could and the warehouse, we is think I

quarterly we need $X So the have. to SG&A we business don't operate of million that

Operator

another from ROTH. from have did follow-up coming we Sean And McGowan

Sean McGowan

Yes.

EBITDA? not on quick a follow-up yet? Just last there it severance you added added adjusted and point that made it's back in Is just back expense severance. is Or that on in that

Dayton Judd

Yes, back. added it's

If look I think at line restructuring. was called EBITDA the you the item table,

it cash yes, yes, and us severance, it done. there. back. has it's for that's we that restructuring. probably we behind could have So you'll we see all Again, it but But And The now. added paid, called called yes, been

Operator

get did another we Alan from from question And Consultants. Barkowski ASB in

Unknown Analyst

for the it. increase another stocks? to regards a bring liquidity the stock as interested to sell more split, for which go it's difficult more saying much know take registration, said accumulating them who in gotten into was like are it And the seems to just want feasibility very marketplace liquidity to you I'm But a recently a I or even shelf to stock easier the trading be interest and bring and has shares. it Is to days, trade below since in would people purchase just will a people have, to or people better. certain In that stock. the again, shareholder and but stock don't dividend I or X,XXX feasibility that out would a positions know X,XXX price, many

Dayton Judd

Yes.

under leave say had meeting. was while split So if yesterday just theme about love the And to doesn't nothing tell me we Board buy stock you I we're meeting what there I shareholder, love on we can increase different at I'll that, But that. good ways before we but not to would meeting and right, the get of or to liquidity. I investor would And the number times be in mentioned this at mentioned some can't probably hurts want at stock. not looking been of that that point, right? formally all Board of to going we of a the it the for just there's near the end question. investor decided potential more we're yes, But than agenda I for surprised happen it the Again, the earlier, the at has I but point I'll future, approved hurts can't can. stock, biggest we the more the Like being liquidity. want I hear short or I liquidity and anybody. they a it so to an story, because to dilutive, do do I'm enough anything meeting, dilutive the be

to what So there. think that go all And we're in we doing aligned regard. trying we're I can we're where in

Unknown Analyst

guess. the and the And been entire with I've main X, know, some people, that that's almost interested you I comment for years, I've et cetera. you As X got

them where to be with it. would even comfortable stock a do would of and advantageous And split they be said, more able more feel some

to I'm hear So that glad you considering option.

Operator

another from coming we Johnson Shi. And follow-up had

Unknown Analyst

a partnering or liquidity, improve through with that not splits just to say, thought I let's with, have market Have dividends, question. makers? market makers about sort partnering of you but or something stock

Dayton Judd

happens Yes. kind of Look, that automatically.

can't be You NASDAQ. on

conditions accepted of broker-dealers willing applying to make trade is having being on markets One in and NASDAQ the your securities. to to of

have And Look, is been have daily X So is somebody the will sell. we X of a challenge in got About always X,XXX not right, pointed our of X.X volume we about is think day, around the There and think X.X XX% bid X,XXX keen right, our then, too float million outstanding. or like shares. shares a even have that, here I be and ask. an to look, million I right. float. million, million before, average out I shares out But those

So of and don't have you is I've feel stock like I don't of some right. got sell. plenty some to situation that go to there's maybe the But to around, some you want and I sell want and

are. And so as where are a result, we we

are though, split, $XXX because think are I'd north or So to liquidity something And stock. finding stock no and there's â€“ interested of like market that again sell hard are cap. we're going maybe like begrudgingly reason time things a million other some having little get a that, for I than potentially, comfortably there a bit institutions

I've by for just you appreciate So that asking asking myself their questions the yes, conclude saying I'll and all questions I years. been

it the anything. and a pull thoughtful before it, seriously, we trigger think lot so about we be take And we on we'll but

Operator

Dayton at time. no for closing to were questions remarks. back would hand like other now in the There queue this I to call Judd

Dayton Judd

all Well, right. All you, We thank you participating appreciate call. your Paul, thank FitLife. the and in for in interest

or we're of might questions other As any willing one-on-one you answer have. you always, to to talk kind

investor@fitlifebrands.com. to us. is The to which free feel investor e-mail, way to do reach our is So best out through that

appreciate it call. the earnings to we again, so on look And and forward next to talking you

Operator

conclude does call. today's This you. conference Thank

Thank your lines wonderful for disconnect day. you may time. a your Have this You participation. at

FitLife Brands (FTLF) 14 Nov 242024 Q3 Earnings call transcript