8-K
Fitlife Brands, Inc. (FTLF)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of report (Date of earliest event reported): April 3, 2020
Commission File Number: 000-52369
FitLife Brands, Inc. (Exact name of registrant as specified in its charter.)
Nevada (State or other jurisdiction of incorporation or organization)
20-3464383 (IRS Employer Identification No.)
5214 S. 136th Street, Omaha, Nebraska 68137 (Address of principal executive offices)
402-333-5260 (Registrant's Telephone number)
Not Applicable (Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
[ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2)
Emerging growth company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Securities registered pursuant to Section 12(b) of the Act:
Title of each class N/A
Trading Symbol(s) FTLF
Name of exchange on which registered N/A
Item 2.02 Results of Operations and Financial Condition.
On April 3, 2020, FitLife Brands, Inc. issued a press release providing preliminary financial results for the first quarter ended March 31, 2020. A copy of the press release is attached hereto as Exhibit 99.1.
In accordance with General Instruction B.2 for Form 8-K, the information in this Form 8-K, including Exhibit 99.1, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as expressly set forth by specific reference in such filing.
Item 8.01 Other Events.
See Item 2.02.
Item 9.01 Financial Statements and Exhibits.
See Exhibit Index.
Exhibit Index
| Exhibit No.<br><br> <br>* * * | Description<br><br> <br>* * * |
|---|---|
| EX-99.1 | Press Release |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FitLife Brands, Inc. |
|---|
Date: April 3, 2020
| By: | /s/ Dayton Judd |
|---|---|
| Name: Dayton Judd | |
| Title: Chief Executive Officer |
ex99-1
FitLife Brands Provides Preliminary First Quarter Results and Operational Update
OMAHA, NE – April 3, 2020 -- FitLife Brands, Inc. (“FitLife” or the “Company”) (OTC Pink: FTLF), an international provider of innovative and proprietary nutritional supplements for health-conscious consumers marketed under the brand names NDS Nutrition™, PMD®, SirenLabs®, CoreActive®, Metis Nutrition™, iSatori™, Energize, and BioGenetic Laboratories, is providing some preliminary performance indicators for the first quarter of 2020, along with a general operational update. The intent of this communication is to provide transparency to the shareholders of the Company given the challenges and uncertainty resulting from the COVID-19 outbreak.
Preliminary results for the quarter ended March 31, 2020:
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Total revenue is anticipated to be in the range of $5.9-6.1 million, compared to $5.9 million during the first quarter of 2019.
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Direct-to-consumer online sales are estimated to be 14-15% of total revenue, compared to 10% in the same quarter last year.
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Net income is expected to exceed the $1.2 million reported for the first quarter of last year.
General operational update related to current economic environment:
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As of April 2, 2020, the Company had $3.5 million of cash on hand. Of this amount, $2.5 million represents amounts advanced to the Company in March under its line of credit, as previously announced.
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The Company has no debt outstanding other than the amounts drawn on the line of credit.
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The Company remains in compliance with all covenants associated with its line of credit.
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As of April 2, 2020, the Company had accounts receivable totaling $3.6 million, of which approximately 34% is due within the next two weeks.
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At this point, all of the Company’s customers continue to pay in the ordinary course of business.
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Management believes that its brick and mortar customers are experiencing significant declines in foot traffic, which will result in reduced orders during the second quarter of 2020; however, management cannot currently predict the duration of the downturn associated with COVID-19 or the magnitude of the declines the Company’s brick and mortar customers will experience.
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While GNC has reported significant store closures due to COVID-19, management believes that most of the closures relate to corporate stores. The Company’s primary exposure is to GNC franchise locations, and all of the Company’s largest franchisee customers remain open for business.
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The Company’s products continue to be available for sale on Amazon, eBay, and the Company’s own websites.
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The Company continues to experience growth in direct-to-consumer sales, and the growth rate has accelerated as traffic to physical store locations has declined due to COVID-19. However, management believes that the expected increase in online revenue will only partially offset the anticipated decline in wholesale revenue for the Company.
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The Company is taking additional steps to further reduce operating expenses and to postpone planned production runs in order to preserve cash and better align supply with anticipated demand.
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The Company has submitted an application for a loan under the Paycheck Protection Program of the US Department of the Treasury. If the Company is successful in receiving the loan, a substantial portion of the proceeds of the loan will be forgiven as long as the Company maintains its current employee headcount.
About FitLife Brands
FitLife Brands is a developer and marketer of innovative and proprietary nutritional supplements for health-conscious consumers. FitLife markets over 80 different dietary supplements to promote sports nutrition, improved performance, weight loss and general health primarily through domestic and international GNC® franchise locations as well as through more than 25,000 additional domestic retail locations and, increasingly, online. FitLife is headquartered in Omaha, Nebraska. For more information please visit our new website at www.fitlifebrands.com.
Forward-Looking Statements
Statements in this release that are forward looking involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to be materially different from any future performance that may be suggested in this news release. Such factors may include, but are not limited to, the ability to of the Company to continue to grow revenue, and the Company's ability to continue to achieve positive cash flow given the Company's existing and anticipated operating and other costs. Many of these risks and uncertainties are beyond the Company's control. Reference is made to the discussion of risk factors detailed in the Company's filings with the Securities and Exchange Commission including its reports on Form 10-K and 10-Q. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.