|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
Want to enable self-service provisioning of application environments in minutes that mirror production? Can you automatically provide rich data with code-level detail back to the developers when issues occur in production? In his session at DevOps Summit, David Tesar, Microsoft Technical Evangelist on Microsoft Azure and DevOps, will discuss how to accomplish this and more utilizing technologies such as Microsoft Azure, Visual Studio online, and Application Insights in this demo-heavy session.
Jan. 31, 2015 05:15 PM EST Reads: 2,702
Entuity®, a provider of enterprise-class network management solutions, today announced that it solidifies its position as a market leader through global enterprise customer acquisitions and a refined channel strategy. In 2014, Entuity increased new license revenues in EMEA by over 75 percent, and LATAM by over 125 percent as customers embraced Entuity for its highly automated solution and unified architecture. Entuity’s refined channel strategy focuses on even deeper strategic alignment with ke...
Jan. 31, 2015 05:00 PM EST Reads: 735
We are all here because we are sold on the transformative promise of The Cloud. But what good is all of this ephemeral, on-demand infrastructure if your usage doesn't actually improve the agility and speed of your business? How must Operations adapt in order to avoid stifling your Cloud initiative? In his session at DevOps Summit, Damon Edwards, co-founder and managing partner of the DTO Solutions, will highlight the successful organizational, process, and tooling patterns of high-performing c...
Jan. 31, 2015 04:15 PM EST Reads: 2,963
The 4th International DevOps Summit, co-located with16th International Cloud Expo – being held June 9-11, 2015, at the Javits Center in New York City, NY – announces that its Call for Papers is now open. Born out of proven success in agile development, cloud computing, and process automation, DevOps is a macro trend you cannot afford to miss. From showcase success stories from early adopters and web-scale businesses, DevOps is expanding to organizations of all sizes, including the world's large...
Jan. 31, 2015 03:00 PM EST Reads: 3,840
“We help people build clusters, in the classical sense of the cluster. We help people put a full stack on top of every single one of those machines. We do the full bare metal install," explained Greg Bruno, Vice President of Engineering and co-founder of StackIQ, in this SYS-CON.tv interview at 15th Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 31, 2015 02:45 PM EST Reads: 2,590
"People are a lot more knowledgeable about APIs now. There are two types of people who work with APIs - IT people who want to use APIs for something internal and the product managers who want to do something outside APIs for people to connect to them," explained Roberto Medrano, Executive Vice President at SOA Software, in this SYS-CON.tv interview at Cloud Expo, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 31, 2015 02:30 PM EST Reads: 2,740
In this demo at 15th Cloud Expo, John Meza, Product Engineer at Esri, showed how Esri products hook into Hadoop cluster to allow you to do spatial analysis on the spatial data within your cluster, and he demonstrated rendering from a data center with ArcGIS Pro, a new product that has a brand new rendering engine.
Jan. 31, 2015 02:30 PM EST Reads: 1,818
"Blue Box has been around for 10-11 years, and last year we launched Blue Box Cloud. We like the term 'Private Cloud as a Service' because we think that embodies what we are launching as a product - it's a managed hosted private cloud," explained Giles Frith, Vice President of Customer Operations at Blue Box, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 31, 2015 02:30 PM EST Reads: 2,771
The Software Defined Data Center (SDDC), which enables organizations to seamlessly run in a hybrid cloud model (public + private cloud), is here to stay. IDC estimates that the software-defined networking market will be valued at $3.7 billion by 2016. Security is a key component and benefit of the SDDC, and offers an opportunity to build security 'from the ground up' and weave it into the environment from day one. In his session at 16th Cloud Expo, Reuven Harrison, CTO and Co-Founder of Tufin,...
Jan. 31, 2015 02:15 PM EST Reads: 1,705
“We are strong believers in the DevOps movement and our staff has been doing DevOps for large enterprise environments for a number of years. The solution that we build is intended to allow DevOps teams to do security at the speed of DevOps," explained Justin Lundy, Founder & CTO of Evident.io, in this SYS-CON.tv interview at DevOps Summit, held Nov 4–6, 2014, at the Santa Clara Convention Center in Santa Clara, CA.
Jan. 31, 2015 02:00 PM EST Reads: 2,303
SYS-CON Media announced that Splunk, a provider of the leading software platform for real-time Operational Intelligence, has launched an ad campaign on Big Data Journal. Splunk software and cloud services enable organizations to search, monitor, analyze and visualize machine-generated big data coming from websites, applications, servers, networks, sensors and mobile devices. The ads focus on delivering ROI - how improved uptime delivered $6M in annual ROI, improving customer operations by minin...
Jan. 31, 2015 02:00 PM EST Reads: 3,894
The move in recent years to cloud computing services and architectures has added significant pace to the application development and deployment environment. When enterprise IT can spin up large computing instances in just minutes, developers can also design and deploy in small time frames that were unimaginable a few years ago. The consequent move toward lean, agile, and fast development leads to the need for the development and operations sides to work very closely together. Thus, DevOps become...
Jan. 31, 2015 02:00 PM EST Reads: 2,863
Puppet Labs on Wednesday released the DevOps Salary Report, based on salary data gathered from Puppet Labs' industry-recognized State of DevOps Report. The data confirms that market demand for DevOps skills is growing, and that DevOps engineers are among the highest paid IT practitioners today. That's because IT organizations today are grappling with how to be more agile and responsive to the business, while maintaining the stability of their infrastructure. DevOps practices, such as continuous ...
Jan. 31, 2015 02:00 PM EST Reads: 1,512
AppDynamics, the application intelligence leader for software-defined businesses, announced the general availability of the AppDynamics Fall '14 Release. Serving the combined needs of IT and business teams across the enterprise, the latest release provides a comprehensive view across all aspects of digital performance in ultra large scale deployments. AppDynamics delivers Application Intelligence by building out advanced capabilities across the key areas of analytics, unified monitoring and D...
Jan. 31, 2015 02:00 PM EST Reads: 2,065