Welcome!

News Feed Item

The Guitammer Company Announces 2013 Financial Results

Company Achieves Key Milestone of Initial "4D powered by ButtKicker" Broadcast With the NHRA on ESPN2; Significantly Increases Deployment of "4D powered by ButtKicker" Cinema Seats

WESTERVILLE, OH -- (Marketwired) -- 03/14/14 -- The Guitammer Company (OTCQB: GTMM) (OTCBB: GTMM), a leader in tactile and haptic broadcast technology and creator of the award-winning line of ButtKicker®-brand low frequency audio transducers that provide an immersive entertainment experience for audiences announced today that its revenue increased in the 4th quarter ending December 31, 2013 by approximately $111,312 or 23% to $600,337 compared to revenue of $489,025 for the 4th quarter of 2012. Revenue for the entire year ending December 31, 2013 decreased $215,324 or 10.1% to $1,917,300 as compared to revenue of $2,132,624 for the year ended December 31, 2012.

2013 Full Year Financial Highlights and Recent Developments

  • National launch of the patented "4D Sports powered by ButtKicker" tactile enabled broadcast technology for the National Hot Rod Association (NHRA) on ESPN2 telecasts. Debuting with the September 14th, 2013 telecast and then for all subsequent 2013 telecasts.

  • Significant acceleration in worldwide cinema deployment with over 4,000 "4D Cinema powered by ButtKicker" seats added in 22 auditoriums in the US, China and Hong Kong which almost doubled the Company's US footprint and more than doubled the Company's footprint in China & Hong Kong.

  • Cinema deployment included outfitting every seat, totaling approximately 1,100, in all 5 locations of a new concept theater by a US top 4 theater operator.

  • Total revenues decreased 10 percent year-over-year to approximately $1.92 million, primarily due to a decrease in international sales, noted below.

  • US sales increased over 10% to approximately $1,060,000 in 2013 from approximately $960,000 in 2012.

  • International sales decreased to $860,000 in 2013 from approximately $1,170,000 in 2012, primarily due to weakness in sales to the European market and most notably France.

  • Gross margins increased to 42 percent for all of 2013 as compared to 40 percent for all of 2012.

  • Approximately $1.25 million of new equity was raised from private placements in FY2013.

  • Continued trend from 2012 of improving working capital deficit with an improvement of (i.e. a decrease of) $70,000 or 4.4 percent in 2013 as compared to 2012.

Rich Conn, Guitammer's CFO, stated, "We are pleased with our Q4 2013 results, last year's gross margin, and the fact that we were able to continue to invest in and begin to commercialize our broadcast technology."

Additional Full Year 2013 Recent Developments

"2013 was a pivotal year for Guitammer as we delivered on our promise of broadcasting sports in "4D" on a national basis and significantly increased our "4D" cinema presence, especially in the US market. In 2013 our strategy of building awareness of our scalable and disruptive broadcast technology supported by cinema sales took several important steps forward and we look for that trend to continue in 2014," said Mark A. Luden, Guitammer's President / CEO.

About The Guitammer Company
The Guitammer Company, based in Westerville, Ohio, is a leader in low frequency sound products and broadcast technology. The Guitammer Company's patented broadcast technology "ButtKicker Live!® or "4D Sports powered by ButtKicker" is now live on ESPN2 for the National Hot Rod Association (NHRA) broadcasts. "4D Sports powered by ButtKicker" enables the excitement, impact and feeling of live sporting events to be broadcast along with the sound and video, and puts the viewer into the action, whether at home or at the event. "4D Sports powered by ButtKicker" technology is available for cable, satellite, fiber optic, IPTV and over-the-air broadcasts. For more information see www.guitammer.com/4Dsports. ButtKicker® and ButtKicker Live!® are registered trademarks of The Guitammer Company.

The Company's innovative and award-winning line of patented ButtKicker-brand low frequency audio transducers let users feel low-frequency sound (bass). ButtKicker brand products are used around the world by leading entertainment and theater companies such as AMC Theatres, Alamo Drafthouse, IMAX, Disney and Lumiere Pavilions in movie theaters and attractions; by world-famous musicians; and in home theaters, by consumers for video games, simulators and car audio.

ButtKicker brand products are distributed by Pearl Drums for musicians under the trade name, "Pearl's Throne Thumper by ButtKicker." ButtKicker brand products' patented design makes them musically accurate, powerful and virtually indestructible.

For additional information on The Guitammer Company and detailed product information, visit www.guitammer.com and www.shakemycouch.com. To like our Facebook page or follow us on Twitter for company updates, visit www.facebook.com/Guitammer and www.twitter.com/Guitammer

Safe Harbor:
This letter contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the ability of the Company to successfully implement its turnaround strategy, changes in costs of raw materials, labor, and employee benefits, as well as general market conditions, competition and pricing. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this letter will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as representation by the Company or any other person that the objectives and plans of the Company will be achieved. In assessing forward-looking statements included herein, readers are urged to carefully read those statements. When used in the Annual Report on Form 10-K, the words "estimate," "anticipate," "expect," "believe," and similar expressions are intended to be forward-looking statements.

- Financial tables follow -



                           THE GUITAMMER COMPANY
                        CONSOLIDATED BALANCE SHEETS

                                                 December 31,  December 31,
                                                 ------------  ------------
                                                     2013          2012
                                                 ------------  ------------
ASSETS
Current assets
  Cash and cash equivalents                      $    140,231  $     79,136
  Accounts receivable, net                             62,505        21,011
  Inventory                                           443,761       629,251
  Prepaid expenses and other current assets             6,141       131,639
                                                 ------------  ------------
    Total current assets                              652,638       861,037

  Property and equipment, net                         127,186        12,208
  Deferred financing costs, net                        38,335        58,336
  Other assets, net                                    21,472        28,780
                                                 ------------  ------------
    Total Assets                                 $    839,631  $    960,361
                                                 ------------  ------------

LIABILITIES AND STOCKHOLDERS' DEFICIT
Current liabilities
  Line of credit                                 $     39,523  $     39,523
  Accounts payable                                    533,438       742,451
  Accrued expenses                                    376,188       459,168
  Deferred revenue                                     68,823       129,385
  Current portion of long-term debt - related
   parties                                            584,352       517,004
  Current portion of long-term debt - non-
   related parties                                    559,987       554,124
                                                 ------------  ------------
    Total current liabilities                       2,162,311     2,441,655

Long-term debt, net of current portion - related
 parties                                              250,000       317,348
Long-term debt, net of current portion - non-
 related parties                                      302,479       391,018
                                                 ------------  ------------
Total Liabilities                                   2,714,790     3,150,021
                                                 ------------  ------------

                                                 ------------  ------------
Commitments                                                 -             -
                                                 ------------  ------------

Stockholders' deficit
  Common stock, par value of $.001, 150,000,000
   shares authorized; 77,905,248 and 68,779,482
   shares issued, and outstanding at December
   31, 2013 and December 31, 2012, respectively        77,906        68,780
  Additional paidddin capital                       7,253,730     5,641,492
  Accumulated deficit                              (9,206,795)   (7,899,932)
                                                 ------------  ------------

Total Stockholders' deficit                        (1,875,159)   (2,189,660)
                                                 ------------  ------------
Total Liabilities and Stockholders' deficit      $    839,631  $    960,361
                                                 ------------  ------------



                           THE GUITAMMER COMPANY
                   CONSOLIDATED STATEMENTS OF OPERATIONS

                                                 Year Ended December 31,
                                             ------------------------------
                                                  2013            2012
                                             --------------  --------------
Total revenue                                $    1,917,300  $    2,132,624

Cost of Goods Sold                                1,106,269       1,282,168
                                             --------------  --------------
    Gross profit                                    811,031         850,456
                                             --------------  --------------

Operating expenses
  General and administrative                      1,727,180       1,568,067
  Research and development                          197,006          75,474
                                             --------------  --------------
                                                  1,924,186       1,643,541
                                             --------------  --------------

    Loss from operations                         (1,113,155)       (793,085)
                                             --------------  --------------

Other income (expense)
  Interest expense                                 (193,776)       (278,928)
  Interest income                                        68              45
                                             --------------  --------------
                                                   (193,708)       (278,883)
                                             --------------  --------------

Loss before provision of income taxes            (1,306,863)     (1,071,968)

Provision for income taxes                                                -
                                             --------------  --------------
  Net loss attributable to common
   stockholders                              $   (1,306,863) $   (1,071,968)
                                             --------------  --------------

Basic and diluted loss per share             $        (0.02) $        (0.02)

Basic and diluted weighted average common
 shares outstanding                              73,712,472      64,861,800


Reconciliation of U.S. GAAP Net loss to EBITDA and Adjusted EBITDA:

EBITDA is defined as earnings (loss) before net interest expense, taxes, depreciation and amortization. Adjusted EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization, stock warrant expense, payment of stock and warrants to consultants and employee stock-based compensation. Although EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with generally accepted accounting principles ("GAAP"), Guitammer believes that these non-GAAP measures will allow for a better evaluation of the operating performance of the business and facilitate meaningful comparison of the results in the current period to those in prior periods and future periods. However, investors should not consider these measures in isolation or as a substitute for net income, operating income, or any other measure for determining Guitammer's operating performance that is calculated in accordance with GAAP. A reconciliation of EBITDA and Adjusted EBITDA to the most comparable GAAP financial measure, net loss, follows:



                    Reconciliation of U.S. GAAP net loss
                       To EBITDA and Adjusted EBITDA

                                                 Year ended December 31,
                                                  2013            2012
                                             --------------  --------------
Net Loss                                     $   (1,306,863) $   (1,071,968)
Adjustments
  Interest expense                                  193,776         278,928
  Depreciation and patent amortization               31,623          12,965
  Taxes                                                   -               -
                                             --------------  --------------
EBITDA                                           (1,081,464)       (780,075)
                                             --------------  --------------
Less non-cash expenses from:
Stock warrant expense                               (20,441)         80,141
Payment of stock and warrants to consultants        184,771         183,239
Employee stock options expense                      153,455          41,002
                                             --------------  --------------
Adjusted EBITDA                              $     (763,679) $     (475,693)
                                             ==============  ==============


More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"Once customers get a year into their IoT deployments, they start to realize that they may have been shortsighted in the ways they built out their deployment and the key thing I see a lot of people looking at is - how can I take equipment data, pull it back in an IoT solution and show it in a dashboard," stated Dave McCarthy, Director of Products at Bsquare Corporation, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
@DevOpsSummit taking place June 6-8, 2017 at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
IoT is rapidly changing the way enterprises are using data to improve business decision-making. In order to derive business value, organizations must unlock insights from the data gathered and then act on these. In their session at @ThingsExpo, Eric Hoffman, Vice President at EastBanc Technologies, and Peter Shashkin, Head of Development Department at EastBanc Technologies, discussed how one organization leveraged IoT, cloud technology and data analysis to improve customer experiences and effici...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Fact is, enterprises have significant legacy voice infrastructure that’s costly to replace with pure IP solutions. How can we bring this analog infrastructure into our shiny new cloud applications? There are proven methods to bind both legacy voice applications and traditional PSTN audio into cloud-based applications and services at a carrier scale. Some of the most successful implementations leverage WebRTC, WebSockets, SIP and other open source technologies. In his session at @ThingsExpo, Da...
The cloud competition for database hosts is fierce. How do you evaluate a cloud provider for your database platform? In his session at 18th Cloud Expo, Chris Presley, a Solutions Architect at Pythian, gave users a checklist of considerations when choosing a provider. Chris Presley is a Solutions Architect at Pythian. He loves order – making him a premier Microsoft SQL Server expert. Not only has he programmed and administered SQL Server, but he has also shared his expertise and passion with b...
"IoT is going to be a huge industry with a lot of value for end users, for industries, for consumers, for manufacturers. How can we use cloud to effectively manage IoT applications," stated Ian Khan, Innovation & Marketing Manager at Solgeniakhela, in this SYS-CON.tv interview at @ThingsExpo, held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA.
As data explodes in quantity, importance and from new sources, the need for managing and protecting data residing across physical, virtual, and cloud environments grow with it. Managing data includes protecting it, indexing and classifying it for true, long-term management, compliance and E-Discovery. Commvault can ensure this with a single pane of glass solution – whether in a private cloud, a Service Provider delivered public cloud or a hybrid cloud environment – across the heterogeneous enter...
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data professionals...
Today we can collect lots and lots of performance data. We build beautiful dashboards and even have fancy query languages to access and transform the data. Still performance data is a secret language only a couple of people understand. The more business becomes digital the more stakeholders are interested in this data including how it relates to business. Some of these people have never used a monitoring tool before. They have a question on their mind like “How is my application doing” but no id...
@GonzalezCarmen has been ranked the Number One Influencer and @ThingsExpo has been named the Number One Brand in the “M2M 2016: Top 100 Influencers and Brands” by Onalytica. Onalytica analyzed tweets over the last 6 months mentioning the keywords M2M OR “Machine to Machine.” They then identified the top 100 most influential brands and individuals leading the discussion on Twitter.
What happens when the different parts of a vehicle become smarter than the vehicle itself? As we move toward the era of smart everything, hundreds of entities in a vehicle that communicate with each other, the vehicle and external systems create a need for identity orchestration so that all entities work as a conglomerate. Much like an orchestra without a conductor, without the ability to secure, control, and connect the link between a vehicle’s head unit, devices, and systems and to manage the ...
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...