Welcome!

News Feed Item

iSatori Reports Profitable Growth for the First Quarter of 2014

Product Revenues Increased 46 Percent Year Over Year; Recorded Net Income of $336,238 or $0.02 per Fully Diluted Share

GOLDEN, CO -- (Marketwired) -- 05/09/14 -- iSatori, Inc. (OTCQB: IFIT), an emerging leader in the development and marketing of scientifically engineered nutritional supplements for healthier lifestyles, today announced financial results for the first quarter ended March 31, 2014.

The Company's net product revenues increased 46 percent over the same quarter 2013, which resulted in net sales for the first quarter 2014 of $3.2 million compared to $2.2 million in the same period last year. The increase was due primarily to the introduction and store sales growth of three new products: (i) Meratrim® Platinum+ (ii) Garcinia Trim™, and (iii) Bio-Gro™. Garcinia Trim™ and Meratrim® Platinum+ are weight-loss pills based on newly released clinical evidence. Bio-Gro™ has been described as a category-defining sports nutrition product based on a new creation called "bioactive peptides" to help athletes enhance physical performance, strength, and muscular development. GNC, America's largest sports supplement retailer, started carrying Bio-Gro™ nationally in January 2014.

Gross profit margins increased from 55 percent of net product revenue (or $1.2 million) to 63 percent of net product revenue (or $2.0 million) over the same period in the prior year, based primarily on the higher margins associated with the three new products mentioned above. Additionally, revenue and gross margin were positively impacted by fewer returns and discounts during the first quarter.

Selling and marketing expense increased in dollar terms and as a percent of revenue (from 14 percent of net product revenue to 24 percent of net product revenue). The increase was due in part to an increase in advertising to support mass market retail expansion and expenses related to the launch of a new, bestselling book, Diets Suck!

Salaries increased in dollar terms due to the addition of two executive sales and marketing professionals, but decreased as a percent of net product revenue (from 24 percent to 20 percent). Administrative expenses decreased both in dollar terms and as a percent of net product revenue (from 19 percent to 7 percent) due primarily to a decrease in professional fees. Overall, operating expenses increased in dollar terms, but decreased as a percent of net product revenue (from 59 percent to 52 percent). Operating income improved from loss of $80,713 (or negative 4 percent of revenue) to income of $354,263 (or 11 percent of net product revenue) compared to the same quarter last year.

Net income increased from a loss $263,119 (or negative 12 percent of net product revenue) to income of $336,238 (or positive 10 percent of net product revenue) compared to the same quarter last year. As a result, basic EPS increased from $(0.02) to $0.03, while fully diluted EPS increased from $(0.02) to $0.02.

Cash flow from operations increased from $129,557 to $323,485 when comparing the three month periods ended March 31, 2012 and 2013. The company's cash balance increased to $1,219,678 as of March 31, 2014 compared to $822,876 at December 31, 2013. Accounts receivable decreased from $2,398,178 as of December 31, 2013, to $1,931,026 as of March 31, 2014. Inventory increased from $1,985,764 as of December 31, 2013, to $2,287,203 as of March 31, 2014.

The Company's current ratio increased from 1.92 as of December 31, 2013, to 2.17 as of March 31, 2014. Debt was virtually unchanged and shareholders' equity increased 13 percent for the quarter.

Highlights from the first quarter of 2014 were:

  • First quarter net product revenue increased by 46 percent year over year.

  • Reported 10 percent net income.

  • GNC started carrying Bio-Gro™, a breakthrough, category-defining, muscle-enhancement product. iSatori launched product line extensions for Bio-Gro™ into new size and delivery configurations.

  • Released bestselling book entitled Diets Suck! to espouse iSatori and its philosophies in making a physical transformation and to help promote the Eat-Smart® line of nutritional products. Book reached Top 10 on Amazon.com during launch week.

  • Presented at the 26th annual ROTH Capital Conference.

  • Added executive vice presidents, for both sales and marketing divisions, to drive innovation, sales, and brand equity.

Stephen Adele, founder and Chief Executive Officer of iSatori, commented: "In our last earnings release, we stated that growth in 2014 and beyond would be driven by the improved talent level of our management team and the introduction of innovative new products. Our first quarter results are an indication that our strategic plan is working, encouraging us to continue to pursue our goals of expanding our distribution, improving our rate of sales velocity and driving continued profitable growth."

A complete report of the company's (GAAP) financial results for the quarter ended March 31, 2014, are available via its quarterly report filed with the Securities and Exchange Commission today on Form 10-Q.

About iSatori, Inc.

iSatori is a consumer products firm that develops and sells nutritional products through online marketing, Fortune 500 retailers, and thousands of retail stores around the world. The Company is headquartered in Golden, Colorado, and its common stock trades on the OTCQB under the symbol "IFIT." More information about the Company is available at http://www.isatori.com.

Forward-Looking Statements

Statements made in this news release relating to the Company's future sales, expenses, revenue, product developments, and all other statements except statements of historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We have used the words "anticipate," "believe," "could," "estimate," "expect," "intend," "may," "plan," "predict," "project," "should," "will," "potential," and similar terms and phrases to identify forward-looking statements in this press release. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are both subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the timing and extent of changes in demand for the Company's products, the availability and price of ingredients necessary to manufacture such products, and the outcome of any current or future litigation regarding such products or similar products of competitors. Please see our Risk Factor disclosures included in our Registration Statement on Form S-1, as amended, initially filed with the Securities and Exchange Commission on April 30, 2013, and in subsequent filings with the Securities and Exchange Commission. All future written or oral forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the previous statements. The forward-looking statements herein speak as of the date of this press release. We undertake no obligation to update any information contained herein or to publicly release the results of any revisions to any forward-looking statements that may be made to reflect events or circumstances that occur, or that we become aware of, after the date of this press release.


                                iSatori, Inc
                          Condensed Balance Sheet
                                (Unaudited)
                          March 31, 2014 and 2013

                                                   March 31,   December 31,
                                                     2014          2013
                                                 ------------  ------------
                     ASSETS
Current assets:
  Cash and cash equivalents                      $  1,219,678  $    822,876
  Accounts receivable
      Trade, net of allowance for doubtful
       accounts                                     1,931,026     2,398,178
  Income tax receivable                                     -       102,452
  Note receivables - current portion                   10,325        11,013
  Inventories                                       2,287,203     1,985,764
  Assets held for sale                                 21,824       108,228
  Deferred tax asset, net                              95,176        53,081
  Prepaid expenses                                    167,008       222,466
                                                 ------------  ------------
    Total current assets                            5,732,240     5,704,058
                                                 ------------  ------------

Property and equipment, net of accumulated
 depreciation                                         171,070       173,636

Note receivable - net of current portion               81,714        81,714

Other assets:
  Deferred tax asset, net                             152,970       147,941
  Deposits and other assets                            41,997        61,167
                                                 ------------  ------------
    Total other assets                                194,967       209,108
                                                 ------------  ------------

      Total assets                               $  6,179,991  $  6,168,516
                                                 ============  ============

      LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Trade accounts payable                         $    976,943  $  1,248,490
  Accrued expenses                                    182,768       187,608
  Deferred revenues                                   239,624       292,215
  Line of credit, less debt discount                1,220,655     1,220,655
  Notes payable                                        19,297        20,464
                                                 ------------  ------------
    Total current liabilities                       2,639,287     2,969,432

Long-term liabilites
  Derivative liability                                470,292       471,015

 Commitments and contingencies (Notes 1,2,5, and 6)

Stockholders' Equity:
  Convertible preferred stock, $0.01 par value,
   750,000 shares authorized; 22,500 shares
   issued and outstanding ($450,000 of
   liquidation value)                                     225           225
  Common stock, $0.01 par value, 56,250,000
   shares authorized; 12,879,651 shares issued
   and outstanding                                    128,797       128,797
  Additional paid-in capital                        4,737,640     4,731,535
  Accumulated deficit                              (1,796,250)   (2,132,488)
                                                 ------------  ------------
    Total stockholders' equity                      3,070,412     2,728,069
                                                 ------------  ------------

      Total liabilities and stockholders' equity $  6,179,991  $  6,168,516
                                                 ============  ============


                               iSatori, Inc.
                     Condensed Statements of Operations
                                (Unaudited)
                   Quarter Ended March 31, 2014 and 2013

                                                     March 31     March 31
                                                       2014         2013
                                                   -----------  -----------
Revenues:
  Product revenue (Net of returns and discounts)   $ 3,219,244  $ 2,203,856
  Royalty revenue                                       32,627       32,710
  Other revenue                                          9,396       19,800
                                                   -----------  -----------
    Total revenue                                    3,261,267    2,256,366

Cost of sales                                        1,243,797    1,045,113
                                                   -----------  -----------
    Gross profit                                     2,017,470    1,211,253

Operating Expenses:
  Selling and marketing                                782,687      316,175
  Salaries and labor related expenses                  647,413      534,328
  Administration                                       213,978      416,447
  Depreciation and amortization                         19,129       25,016
                                                   -----------  -----------
    Total operating expenses                         1,663,207    1,291,966
                                                   -----------  -----------

Income/(loss) from operations                          354,263      (80,713)
                                                   -----------  -----------

Other income (expense)                                  30,199     (124,359)
Financing expense                                      (21,353)     (46,761)
Interest expense                                       (11,048)      (1,152)
                                                   -----------  -----------

Income/(loss) before income taxes                      352,061     (252,985)

Income tax expense                                     (15,823)     (10,134)
                                                   -----------  -----------

Net income/(loss)                                  $   336,238  $  (263,119)
                                                   ===========  ===========

Net income/(loss) per common share
  Basic                                            $      0.03  $     (0.02)
  Diluted                                          $      0.02  $     (0.02)

Weighted average shares outstanding:
  Basic                                             12,879,651   12,622,756
  Diluted                                           14,546,736   12,622,756

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
The IoTs will challenge the status quo of how IT and development organizations operate. Or will it? Certainly the fog layer of IoT requires special insights about data ontology, security and transactional integrity. But the developmental challenges are the same: People, Process and Platform. In his session at @ThingsExpo, Craig Sproule, CEO of Metavine, will demonstrate how to move beyond today's coding paradigm and share the must-have mindsets for removing complexity from the development proc...
In the rush to compete in the digital age, a successful digital transformation is essential, but many organizations are setting themselves up for failure. There’s a common misconception that the process is just about technology, but it’s not. It’s about your business. It shouldn’t be treated as an isolated IT project; it should be driven by business needs with the committed involvement of a range of stakeholders.
In today's enterprise, digital transformation represents organizational change even more so than technology change, as customer preferences and behavior drive end-to-end transformation across lines of business as well as IT. To capitalize on the ubiquitous disruption driving this transformation, companies must be able to innovate at an increasingly rapid pace. Traditional approaches for driving innovation are now woefully inadequate for keeping up with the breadth of disruption and change facin...
SYS-CON Events announced today that MangoApps will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. MangoApps provides modern company intranets and team collaboration software, allowing workers to stay connected and productive from anywhere in the world and from any device. For more information, please visit https://www.mangoapps.com/.
SYS-CON Events announced today that EastBanc Technologies will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. EastBanc Technologies has been working at the frontier of technology since 1999. Today, the firm provides full-lifecycle software development delivering flexible technology solutions that seamlessly integrate with existing systems – whether on premise or cloud. EastBanc Technologies partners with p...
The cloud era has reached the stage where it is no longer a question of whether a company should migrate, but when. Enterprises have embraced the outsourcing of where their various applications are stored and who manages them, saving significant investment along the way. Plus, the cloud has become a defining competitive edge. Companies that fail to successfully adapt risk failure. The media, of course, continues to extol the virtues of the cloud, including how easy it is to get there. Migrating...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
SYS-CON Events announced today that Super Micro Computer, Inc., a global leader in Embedded and IoT solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Supermicro (NASDAQ: SMCI), the leading innovator in high-performance, high-efficiency server technology, is a premier provider of advanced server Building Block Solutions® for Data Center, Cloud Computing, Enterprise IT, Hadoop/Big Data, HPC and ...
18th Cloud Expo, taking place June 7-9, 2016, 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. Meanwhile, 94% of enterprises are using some...
@DevOpsSummit taking place June 7-9, 2016 at Javits Center, New York City, and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world.
How will your company move to the cloud while ensuring a solid security posture? Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is ...
SYS-CON Events announced today Object Management Group® has been named “Media Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that IBM Cloud Data Services has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. IBM Cloud Data Services offers a portfolio of integrated, best-of-breed cloud data services for developers focused on mobile computing and analytics use cases.
Cloud computing delivers on-demand resources that provide businesses with flexibility and cost-savings. The challenge in moving workloads to the cloud has been the cost and complexity of ensuring the initial and ongoing security and regulatory (PCI, HIPAA, FFIEC) compliance across private and public clouds. Manual security compliance is slow, prone to human error, and represents over 50% of the cost of managing cloud applications. Determining how to automate cloud security compliance is critical...
The Internet of Things (IoT) is growing rapidly by extending current technologies, products and networks. By 2020, Cisco estimates there will be 50 billion connected devices. Gartner has forecast revenues of over $300 billion, just to IoT suppliers. Now is the time to figure out how you’ll make money – not just create innovative products. With hundreds of new products and companies jumping into the IoT fray every month, there’s no shortage of innovation. Despite this, McKinsey/VisionMobile data...