|By Marketwired .||
|August 4, 2014 04:30 PM EDT||
DENVER, CO -- (Marketwired) -- 08/04/14 -- MusclePharm Corporation (OTCQB: MSLP), a scientifically driven, performance-lifestyle sports nutrition company, today announced financial results for the second quarter ended June 30, 2014.
2014 Second-Quarter Results
The following comparison refers to results for the second quarter of 2014 versus the second quarter of 2013.
Net sales increased 83 percent to $46.7 million from $25.5 million last year, primarily as a result of new sales channels, new product lines, and increased brand awareness.
Net sales by distribution channel were as follows:
- Food, Drug and Mass (FDM), a new distribution channel for MusclePharm in 2014, accounted for $5.0 million of the Company's sales increase;
- International increased $10.7 million, or 119 percent, to $19.7 million, compared with $9.0 million during the same period last year; and,
- Specialty, which includes distributors and online retailers, grew by $2.6 million, or 16 percent, to $19.0 million, compared with $16.4 million last year.
Gross profit was $15.6 million, compared with $7.9 million last year. As a percentage of net sales, gross profit was 33.5 percent, compared with 31.1 percent last year.
Operating expenses as a percentage of net sales decreased to 32.5 percent, compared with 41.8 percent last year.
Net income was approximately $400,000, or $0.03 per diluted share, compared with a net loss of approximately $2.4 million, or $0.34 per share, for the same period last year.
"MusclePharm's solid second-quarter results are a testament to the strength of the company's brands in what has historically been a challenging quarter," said Brad Pyatt, MusclePharm's chairman and chief executive officer. "As MusclePharm gains further traction both domestically and internationally, we remain focused on driving the strength of our brands, while enhancing our leadership position."
- Launched more than 60 new items within the MusclePharm® Hybrid and Core Series, Arnold Schwarzenegger Series and FitMiss brands, including new products, new flavors and new sizes in the second quarter. MusclePharm has launched more than 100 new items year-to-date;
- Signed a multi-year endorsement agreement with Tiger Woods, which includes sponsorship of Tiger Woods' golf bag. The 2014 Open Championship was viewed by 7.45 million people with MusclePharm's logo legible 72 percent of the time Tiger's golf bag appeared on-screen. Total bag exposure was more than an hour and twenty minutes;
- Signed a multi-year endorsement contract with Johnny Manziel;
- Expanded relationship with GNC to carry all of MusclePharm's brands on a dedicated wall in all of GNC's U.S. stores;
- Published the results of a double-blind placebo-controlled clinical study, which demonstrated that MusclePharm's recovery and hydration supplement Amino1 enhanced rehydration more effectively than water and Gatorade. MusclePharm plans on conducting approximately 20 clinical studies during the year;
- Received 25 nominations for the 2014 Bodybuilding.com Supplement Awards. Categories for consideration include the prestigious Brand of the Year award for both the MusclePharm and Arnold Schwarzenegger brands. Nominees were chosen based on sales performance on Bodybuilding.com; and,
- Added Gregory Macosko to the Board of Directors and named him as Chairman of the Audit Committee. Macosko is also on the Board of Montrose Advisors and is a retired partner and portfolio manager of Lord Abbet's Small Cap Value Fund.
2014 Six-Month Results
The following comparison refers to results for the first six months of 2014 versus the first six months of 2013.
Net sales increased 102 percent to $96.9 million from $48.0 million last year.
Net sales by distribution channel were as follows:
- Food, Drug and Mass (FDM), a new distribution channel for MusclePharm in 2014, accounted for $10.2 million of the Company's sales increase;
- International increased $22.7 million, or 148 percent, to $38.0 million compared with $15.3 million during the same period last year; and,
- Specialty, which includes distributors and online retailers, grew by $10.6 million, or 33 percent, to $42.8 million compared with $32.2 million last year.
Gross profit was $33.5 million, compared with $16.1 million last year. As a percentage of net sales, gross profit was 34.6 percent, compared with 33.5 percent last year.
Operating expenses as a percentage of net sales decreased to 31.6 percent, compared with 40.7 percent last year.
Net income was approximately $3.1 million, or $0.27 per diluted share, compared with a net loss of approximately $9.8 million, or $1.72 per share, for the same period last year.
At June 30, 2014, the company had approximately $3.8 million in cash.
2014 Full-Year Guidance
MusclePharm is increasing its full-year guidance for 2014 as follows:
- 2014 full-year net sales of approximately $185 to $195 million
- Diluted earnings per share in the range of $0.45 - $0.50
MusclePharm has provided this outlook based on assumptions of weighted average diluted shares outstanding of 12.6 million for the year.
"With new and growing retail relationships, an increased international presence, and development of additional brands, products and extensions backed by some of the world's most accomplished athletes, we believe that MusclePharm is emerging as a lifestyle brand that has broad and diverse appeal," Pyatt added.
2014 Second Quarter Conference Call Information
When: Tuesday, August 5 Time: 8:30 a.m. Eastern Time Phone: 1-877-407-9126 (domestic) 1-201-493-6751 (international)
A live webcast will be available online on MusclePharm's website at http://ir.musclepharmcorp.com, where it will be archived for one year.
An audio replay of the conference call will be available through midnight August 12 by dialing 877-407-9126 from the U.S. or Canada, or 201-612-7415 from international locations, passcode 13581597.
MusclePharm® is a scientifically driven, performance-lifestyle company that currently develops, manufactures, markets and distributes branded nutritional supplements. The company offers a complete range of powders, capsules, tablets and gels. Its portfolio of recognized brands, including MusclePharm® Hybrid and Core Series, Arnold Schwarzenegger Series and FitMiss, are marketed and sold in more than 110 countries and available in more than 35,000 retail outlets globally. These clinically-proven and scientific nutritional supplements are developed through a six-stage research process utilizing the expertise of leading nutritional scientists, doctors and universities. We believe that MusclePharm is the innovator of the sports nutrition industry. For more information, visit www.musclepharm.com.
To sign up to receive MusclePharm news via email, please visit http://ir.musclepharmcorp.com/email-alerts
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as "expects", "anticipates", "intends", "estimates", "plans", "potential", "possible", "probable", "believes", "seeks", "may", "will", "should", "could" or the negative of such terms or other similar expressions. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in the Company's business. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2012, the Company's Quarter Reports on Form 10-Q and other filings submitted by the Company to the SEC, copies of which may be obtained from the SEC's website at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. All forward-looking statements are qualified in their entirety by this cautionary statement and the Company undertakes no obligation to revise or update this release to reflect events or circumstances after the date hereof.
MusclePharm Corporation Condensed Financial Statements For the Three Months Ended June 30, (unaudited) -------------------------- 2014 2013 ------------ ------------ Net sales $ 46,739,987 $ 25,480,059 Cost of goods sold 31,093,224 17,566,718 ------------ ------------ Gross profit 15,646,763 7,913,341 Operating expenses 15,167,248 10,654,272 ------------ ------------ Income (loss) from operations 479,515 (2,740,931) Other income (expense) (71,187) 319,123 ------------ ------------ Net income (loss) $ 408,328 $ (2,421,808) ============ ============ Earnings per share - basic $ 0.04 $ (0.34) Earnings per share - diluted $ 0.03 $ (0.34) For the Six Months Ended June 30, (unaudited) -------------------------- 2014 2013 ------------ ------------ Net sales $ 96,949,441 $ 48,041,226 Cost of goods sold 63,429,609 31,963,124 ------------ ------------ Gross profit 33,519,832 16,078,102 Operating expenses 30,616,428 19,540,512 ------------ ------------ Income (loss) from operations 2,903,404 (3,462,410) Other income (expense) 241,158 (6,321,379) ------------ ------------ Net income (loss) $ 3,144,562 $ (9,783,789) ============ ============ Earnings per share - basic $ 0.30 $ (1.72) Earnings per share - diluted $ 0.27 $ (1.72) MusclePharm Corporation Condensed Financial Statements December 31, June 30, 2014 2013 (unaudited) (audited) ------------- ------------- Assets Current assets $ 50,547,702 $ 44,526,480 Property and equipment - net 6,221,261 2,613,584 Intangible assets - net 6,732,532 155,165 Other assets 3,431,423 4,862,467 ------------- ------------- Total assets $ 66,932,918 $ 52,157,696 ============= ============= Liabilities and Stockholders' Equity Current liabilities 28,473,117 32,368,521 Long term liabilities 366,378 54,639 ------------- ------------- Total liabilities 28,839,495 32,423,160 Total stockholders' equity 38,093,423 19,734,536 ------------- ------------- Total Liabilities and Stockholders' Equity $ 66,932,918 $ 52,157,696 ============= =============
Matt Sheldon/Evan Pondel
Silver Spring Networks, Inc. (NYSE: SSNI) extended its Internet of Things technology platform with performance enhancements to Gen5 – its fifth generation critical infrastructure networking platform. Already delivering nearly 23 million devices on five continents as one of the leading networking providers in the market, Silver Spring announced it is doubling the maximum speed of its Gen5 network to up to 2.4 Mbps, increasing computational performance by 10x, supporting simultaneous mesh communic...
Feb. 12, 2016 05:00 AM EST
Predictive analytics tools monitor, report, and troubleshoot in order to make proactive decisions about the health, performance, and utilization of storage. Most enterprises combine cloud and on-premise storage, resulting in blended environments of physical, virtual, cloud, and other platforms, which justifies more sophisticated storage analytics. In his session at 18th Cloud Expo, Peter McCallum, Vice President of Datacenter Solutions at FalconStor, will discuss using predictive analytics to ...
Feb. 12, 2016 04:45 AM EST Reads: 403
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
Feb. 12, 2016 03:45 AM EST Reads: 262
Sensors and effectors of IoT are solving problems in new ways, but small businesses have been slow to join the quantified world. They’ll need information from IoT using applications as varied as the businesses themselves. In his session at @ThingsExpo, Roger Meike, Distinguished Engineer, Director of Technology Innovation at Intuit, showed how IoT manufacturers can use open standards, public APIs and custom apps to enable the Quantified Small Business. He used a Raspberry Pi to connect sensors...
Feb. 12, 2016 03:45 AM EST Reads: 332
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, will provide an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data profes...
Feb. 12, 2016 02:30 AM EST Reads: 220
Father business cycles and digital consumers are forcing enterprises to respond faster to customer needs and competitive demands. Successful integration of DevOps and Agile development will be key for business success in today’s digital economy. In his session at DevOps Summit, Pradeep Prabhu, Co-Founder & CEO of Cloudmunch, covered the critical practices that enterprises should consider to seamlessly integrate Agile and DevOps processes, barriers to implementing this in the enterprise, and pr...
Feb. 12, 2016 02:00 AM EST Reads: 430
The principles behind DevOps are not new - for decades people have been automating system administration and decreasing the time to deploy apps and perform other management tasks. However, only recently did we see the tools and the will necessary to share the benefits and power of automation with a wider circle of people. In his session at DevOps Summit, Bernard Sanders, Chief Technology Officer at CloudBolt Software, explored the latest tools including Puppet, Chef, Docker, and CMPs needed to...
Feb. 12, 2016 01:30 AM EST Reads: 341
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
Feb. 12, 2016 12:45 AM EST Reads: 401
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
Feb. 12, 2016 12:00 AM EST Reads: 277
It's easy to assume that your app will run on a fast and reliable network. The reality for your app's users, though, is often a slow, unreliable network with spotty coverage. What happens when the network doesn't work, or when the device is in airplane mode? You get unhappy, frustrated users. An offline-first app is an app that works, without error, when there is no network connection.
Feb. 11, 2016 11:00 PM EST Reads: 229
Data-as-a-Service is the complete package for the transformation of raw data into meaningful data assets and the delivery of those data assets. In her session at 18th Cloud Expo, Lakshmi Randall, an industry expert, analyst and strategist, will address: What is DaaS (Data-as-a-Service)? Challenges addressed by DaaS Vendors that are enabling DaaS Architecture options for DaaS
Feb. 11, 2016 10:45 PM EST Reads: 366
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...
Feb. 11, 2016 10:00 PM EST Reads: 123
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...
Feb. 11, 2016 05:15 PM EST Reads: 221
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...
Feb. 11, 2016 05:00 PM EST Reads: 393
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, will give 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 w...
Feb. 11, 2016 04:30 PM EST