Welcome!

News Feed Item

iSatori Reports Strong Profitability for the Second Quarter of 2014

Gross Product Sales Increased 47% Year Over Year; Operating Income Increased 488% Over the Previous Year; Recorded Net Income of $336,099 (12% of Net Product Revenue) or $0.02 per Fully Diluted Share

GOLDEN, CO -- (Marketwired) -- 08/11/14 -- iSatori, Inc. (OTCQB: IFIT), an emerging leader in the development and marketing of scientifically engineered nutritional supplements for healthier lifestyles, today announced second quarter results.

The Company reports that gross product revenues, prior to discounts, returns, and advertising trade promotions, for the second quarter of 2014 increased $1.2 million over the previous year or 47% to $3.7 million. Net revenues for the second quarter of 2014 were $2.9 million, which reflects a 28% increase over 2013 in the same quarter. The increase was due primarily to the accelerated sales of Bio-Gro™ and the introduction of two new products: (i) Amino-Amp™ and (ii) Isa-Test® DA3™. Bio-Gro™ has been described as a category-defining sports nutrition product because it is not just another "me too" product; it is in a category of its own, using a new creation called "bio-active peptides" to enhance physical performance, strength, and muscular development. During the second quarter, the Company introduced five new flavored versions of Bio-Gro™. Amino-Amp™ is designed to increase the recovery, athletic performance, and muscle-building potential for weight-training individuals. Isa-Test® DA3™ is designed to stimulate the body's natural elevation of the muscle-building hormone testosterone.

Gross margin for the second quarter 2014 slightly declined from 59% to 56% as a percentage of net product revenues, due to product and channel mix. Nonetheless, gross profit in dollars increased 22% during the second quarter.

Selling and marketing expense increased in dollar terms and as a percent of net product revenue (from 13% to 17%). The increase was due in part to an increase in digital media advertising. Salaries increased in dollar terms but decreased as a percent of net product revenue (from 23% to 21%). Administrative expenses decreased both in dollar terms and as a percent of net product revenue (from 20% to 10%) 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 57% to 49%). Operating income improved 488% from $36,397 (2% of net product revenue) to $213,951 (7% of net product revenue).

Financing, interest, and other income (expense) increased from an expense of $97,523 (negative 4% of net product revenue) to income of $185,530 (6% of net product revenue) primarily as a result of a favorable change in the value of derivative instruments in 2014 and the absence of a one-time settlement expense that occurred in 2013. Earnings before taxes increased from a loss of $61,126 (negative 3% of net product revenue) to income of $399,481 (positive 14% of net product revenue). Net income increased from $133,222 (6% of net product revenue) to $336,099 (12% of net product revenue). Basic EPS increased from $0.01 to $0.03 and from $.01 to $.02 for fully diluted share.

Six Months

For the six months ended June 30, 2013, net product revenue increased 37%. Gross margin increased from 57% of net product revenue to 60%. Income (loss) from operations increased from a loss of $44,317 to income of $568,212 (9% of revenue). Earnings before taxes increased from a loss of $314,112 to income of $751,452 (12% of net product revenue). Net income increased from negative $129,898 to $672,337 (11% of net product revenue) and from negative $0.01 to positive $0.05 per basic and fully diluted share.

Cash flow provided by operations was a positive $825,829 for the six months ended June 30, 2014, compared to cash used of $163,475 for the six months ended June 30, 2013. Thus, the company's cash balance increased to $1,717,916 as of June 30, 2014. Accounts receivable decreased from $2,398,178 as of December 31, 2013, to $2,148,148 as of June 30, 2014. Inventory increased from $1,985,764 as of December 31, 2013, to $2,246,804 as of June 30, 2014. The company's current ratio increased from 1.92 as of December 31, 2013, to 2.05 as of June 30, 2014. Debt was virtually unchanged and shareholders' equity increased 26% for the six-month period.

Highlights from the second quarter of 2014 were:

  • Second quarter net product revenue increased by 28% year over year.

  • Operating income increased 488%.

  • Reported 12% net income as a percentage of net revenues.

  • Basic and fully diluted EPS doubled.

  • Introduced new iSatori products and five new flavors of Bio-Gro™.

  • Introduced new diet support pill, Sinetrim™, nationally into GNC, under the BioGenetic Laboratories brand.

  • Two major scientific clinical studies were completed and presented regarding the safety and efficacy of Bio-Gro™ and Energize. Bio-Gro™ was described above. Energize is a time-released energy pill sold in Walgreens, Duane Reade, Rite-Aid, Walmart, and other retailers.

Beyond the Quarter

  • In July, iSatori was nominated for the coveted "Breakout Brand of the Year" by Bodybuilding.com.

  • Entered four new international countries for distribution of iSatori and BioGenetic Laboratories products, including the now available supply of Bio-Gro™ in GNC Canada.

Commentary

Stephen Adele, founder and chief executive officer of iSatori, commented: "We are well on our way to achieving our goal of profitable growth. The iSatori team is very proud to have produced earnings of $672,337 on net product revenue of $6,096,740 for the first half of 2014. During the second half of 2014, our sales and marketing team will continue to work with our specialty retail partners and others to maximize the market impact of our category-defining product, Bio-Gro™, and continue to fund ongoing research to discover the full market potential for this breakthrough supplement. In addition, the team will work to capitalize on the momentum of our new products, Amino-Amp™ and Isa-Test® DA3™. Meanwhile, our research and development team expects to bring at least two more exciting new products to market this year. It's certainly exciting times at iSatori, and I'm excited about the future."

Industry Developments

In 2013, the nutritional supplement market grew 7.5% to $34.9 billion (according the NBJ Annual SNWL Industry report). Sports nutrition comprised 13% of that total and is the fastest growing sector in nutritional supplements. The biggest sales channel for supplements is natural and specialty retail, e.g., GNC, followed by mass market retail, e.g., Walmart. Supplement manufacturers/marketers like iSatori comprise 72% of the supplement market. The remaining 28% is comprised of multi-level marketers and private labels. The 80/20 rule is definitely in effect with respect to the 72% of the supplement market controlled by manufacturers/marketers. The largest 16% of manufacturers/marketers generate 86% of the revenue while the smallest 84% of industry players generate 14% of the revenue.

A complete report of the Company's (GAAP) financial results for the quarter ended June 30, 2014, are available via its quarterly report filed with the Securities and Exchange Commission today on Form 10-Q.

To sign up to receive iSatori ("IFIT") most recent news and updates via email, please visit http://www.isatori.com/Email-Signup-C2041.aspx.

About iSatori, Inc.

iSatori is a consumer products firm that develops and sells scientifically engineered 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)

                                                    June 30,   December 31,
                                                      2014         2013
                                                  -----------  ------------
                      ASSETS
Current assets:
  Cash and cash equivalents                       $ 1,717,916  $    822,876
  Accounts receivable
    Trade, net of allowance for doubtful accounts   2,148,148     2,398,178
  Inventories                                       2,246,804     1,985,764
  Income tax receivable                                     -       102,452
  Note receivables - current portion                    7,357        11,013
  Assets held for sale                                 35,185       108,228
  Deferred tax asset, net                              47,918        53,081
  Prepaid expenses                                    212,153       222,466
                                                  -----------  ------------
    Total current assets                            6,415,481     5,704,058
                                                  -----------  ------------

Property and equipment, net of accumulated
 depreciation                                         157,046       173,636

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

Other assets:
  Deferred tax asset, net                             143,956       147,941
  Deposits and other assets                            33,858        61,167
                                                  -----------  ------------
    Total other assets                                177,814       209,108
                                                  -----------  ------------

      Total assets                                $ 6,832,055  $  6,168,516
                                                  ===========  ============

       LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:
  Trade accounts payable                          $ 1,354,883  $  1,248,490
  Accrued expenses                                    315,743       187,608
  Deferred revenues                                   214,977       292,215
  Line of credit, less debt discount                1,220,519     1,220,655
  Notes payable                                        18,117        20,464
                                                  -----------  ------------
    Total current liabilities                       3,124,239     2,969,432

Long-term liabilites:
  Derivative liability                                279,013       471,015

Commitments and contingencies

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; 12,887,151 shares issued
   and outstanding                                    128,872       128,797
  Additional paid-in capital                        4,759,857     4,731,535
  Accumulated deficit                              (1,460,151)   (2,132,488)
                                                  -----------  ------------
    Total stockholders' equity                      3,428,803     2,728,069
                                                  -----------  ------------

      Total liabilities and stockholders' equity  $ 6,832,055  $  6,168,516
                                                  ===========  ============



                               iSatori, Inc.
                     Condensed Statements of Operations
                                (Unaudited)

                               Quarter Ended        Six Month Period Ended
                         ------------------------  ------------------------
                           June 30      June 30      June 30      June 30
                             2014         2013         2014         2013
                         -----------  -----------  -----------  -----------
Revenues:
  Product revenue (Net
   of returns and
   discounts)            $ 2,877,496  $ 2,240,574  $ 6,096,740  $ 4,444,430
  Royalty revenue             30,501       33,813       63,127       66,524
  Other revenue               10,370        5,541       19,767       25,341
                         -----------  -----------  -----------  -----------
    Total revenue          2,918,367    2,279,928    6,179,634    4,536,295

Cost of sales              1,306,245      957,452    2,550,043    2,002,566
                         -----------  -----------  -----------  -----------
    Gross profit           1,612,122    1,322,476    3,629,591    2,533,729
                                0.56         0.59
Operating Expenses:
  Selling and marketing      477,413      295,023    1,260,101      611,199
  Salaries and labor
   related expenses          600,968      511,006    1,248,381    1,045,334
  Administration             299,775      452,711      513,753      869,158
  Depreciation and
   amortization               20,015       27,339       39,144       52,355
                         -----------  -----------  -----------  -----------
    Total operating
     expenses              1,398,171    1,286,079    3,061,379    2,578,046
                         -----------  -----------  -----------  -----------

Income (loss) from
 operations                  213,951       36,397      568,212      (44,317)
                         -----------  -----------  -----------  -----------

Other income (expense)       204,642      (77,518)     234,842     (201,877)
Financing expense             (9,476)      (8,572)     (30,827)     (55,333)
Interest expense              (9,636)     (11,433)     (20,685)     (12,585)
                         -----------  -----------  -----------  -----------

Income (loss) before
 income taxes                399,481      (61,126)     751,542     (314,112)

Income tax benefit
 (expense)                   (63,382)     194,348      (79,205)     184,214
                         -----------  -----------  -----------  -----------

Net income (loss)        $   336,099  $   133,222  $   672,337  $  (129,898)
                         ===========  ===========  ===========  ===========

Net income (loss) per
 common share
  Basic                  $      0.03  $      0.01  $      0.05  $     (0.01)
  Diluted                $      0.02  $      0.01  $      0.05  $     (0.01)

Weighted average shares
 outstanding:
  Basic                   12,886,401   12,686,928   12,883,026   12,654,842
  Diluted                 13,686,754   13,738,886   13,714,797   12,654,842

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
Video experiences should be unique and exciting! But that doesn’t mean you need to patch all the pieces yourself. Users demand rich and engaging experiences and new ways to connect with you. But creating robust video applications at scale can be complicated, time-consuming and expensive. In his session at @ThingsExpo, Zohar Babin, Vice President of Platform, Ecosystem and Community at Kaltura, will discuss how VPaaS enables you to move fast, creating scalable video experiences that reach your...
A strange thing is happening along the way to the Internet of Things, namely far too many devices to work with and manage. It has become clear that we'll need much higher efficiency user experiences that can allow us to more easily and scalably work with the thousands of devices that will soon be in each of our lives. Enter the conversational interface revolution, combining bots we can literally talk with, gesture to, and even direct with our thoughts, with embedded artificial intelligence, wh...
In his keynote at 18th Cloud Expo, Andrew Keys, Co-Founder of ConsenSys Enterprise, provided an overview of the evolution of the Internet and the Database and the future of their combination – the Blockchain. Andrew Keys is Co-Founder of ConsenSys Enterprise. He comes to ConsenSys Enterprise with capital markets, technology and entrepreneurial experience. Previously, he worked for UBS investment bank in equities analysis. Later, he was responsible for the creation and distribution of life sett...
Cloud computing is being adopted in one form or another by 94% of enterprises today. Tens of billions of new devices are being connected to The Internet of Things. And Big Data is driving this bus. An exponential increase is expected in the amount of information being processed, managed, analyzed, and acted upon by enterprise IT. This amazing is not part of some distant future - it is happening today. One report shows a 650% increase in enterprise data by 2020. Other estimates are even higher....
SYS-CON Events announced today that SoftLayer, an IBM Company, has been named “Gold Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2016, at the Javits Center in New York, New York. SoftLayer, an IBM Company, provides cloud infrastructure as a service from a growing number of data centers and network points of presence around the world. SoftLayer’s customers range from Web startups to global enterprises.
Most of us already know that adopting new cloud applications can boost a business’s productivity by enabling organizations to be more agile and ready to change course in our fast-moving and connected digital world. But the rapid adoption of cloud apps and services also brings with it profound security threats, including visibility and control challenges that aren’t present in traditional on-premises environments. At the same time, the cloud – because of its interconnected, flexible and adaptable...
19th Cloud Expo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, 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 enterpri...
In his general session at 18th Cloud Expo, Lee Atchison, Principal Cloud Architect and Advocate at New Relic, discussed cloud as a ‘better data center’ and how it adds new capacity (faster) and improves application availability (redundancy). The cloud is a ‘Dynamic Tool for Dynamic Apps’ and resource allocation is an integral part of your application architecture, so use only the resources you need and allocate /de-allocate resources on the fly.
SYS-CON Events announced today the Enterprise IoT Bootcamp, being held November 1-2, 2016, in conjunction with 19th Cloud Expo | @ThingsExpo at the Santa Clara Convention Center in Santa Clara, CA. Combined with real-world scenarios and use cases, the Enterprise IoT Bootcamp is not just based on presentations but with hands-on demos and detailed walkthroughs. We will introduce you to a variety of real world use cases prototyped using Arduino, Raspberry Pi, BeagleBone, Spark, and Intel Edison. Y...
Businesses are struggling to manage the information flow and interactions between all of these new devices and things jumping on their network, and the apps and IT systems they control. The data businesses gather is only helpful if they can do something with it. In his session at @ThingsExpo, Chris Witeck, Principal Technology Strategist at Citrix, will discuss how different the impact of IoT will be for large businesses, expanding how IoT will allow large organizations to make their legacy ap...
The vision of a connected smart home is becoming reality with the application of integrated wireless technologies in devices and appliances. The use of standardized and TCP/IP networked wireless technologies in line-powered and battery operated sensors and controls has led to the adoption of radios in the 2.4GHz band, including Wi-Fi, BT/BLE and 802.15.4 applied ZigBee and Thread. This is driving the need for robust wireless coexistence for multiple radios to ensure throughput performance and th...
Internet of @ThingsExpo, taking place November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 19th Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devices - comp...
The many IoT deployments around the world are busy integrating smart devices and sensors into their enterprise IT infrastructures. Yet all of this technology – and there are an amazing number of choices – is of no use without the software to gather, communicate, and analyze the new data flows. Without software, there is no IT. In this power panel at @ThingsExpo, moderated by Conference Chair Roger Strukhoff, panelists will look at the protocols that communicate data and the emerging data analy...
“We're a global managed hosting provider. Our core customer set is a U.S.-based customer that is looking to go global,” explained Adam Rogers, Managing Director at ANEXIA, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
According to Forrester Research, every business will become either a digital predator or digital prey by 2020. To avoid demise, organizations must rapidly create new sources of value in their end-to-end customer experiences. True digital predators also must break down information and process silos and extend digital transformation initiatives to empower employees with the digital resources needed to win, serve, and retain customers.