FitLife Brands, Inc swung to a net loss for the quarter ended Sep. 30, 2016. The company has made a net loss of $0.36 million, or $ 0.03 a share in the quarter, against a net profit of $0.38 million, or $0.04 a share in the last year period. Revenue during the quarter dropped 14.83 percent to $5.34 million from $6.27 million in the previous year period. Gross margin for the quarter contracted 444 basis points over the previous year period to 37.21 percent. Operating margin for the quarter stood at negative 6.71 percent as compared to a positive 7.07 percent for the previous year period.
Operating loss for the quarter was $0.36 million, compared with an operating income of $0.44 million in the previous year period.
"We faced some headwinds during the third quarter this year," said John S. Wilson, chief executive officer of FitLife Brands. "The timing GNC’s franchise convention created a difficult comparison in this year’s third quarter, as a significant portion of convention-related revenue was booked in the second quarter 2016. Additionally, after a profitable first half of the year, we saw declines in the iSatori division during the third quarter. However, the investment merits for the acquisition remain intact, including access to additional distribution channels, and we remain excited about the prospects going forward. Since we completed the acquisition last year, we have been hard at work on our rebranding strategy for iSatori, which will include a complete design and packaging overhaul for the majority of products. We plan to roll out the new iSatori branding during the fourth quarter of this year and we are very excited about the work our team has done and look forward to a successful rollout of the newly branded products. We continue to work hard to improve the operating performance of iSatori and are confident that it will be a positive for revenue growth and will be accretive to our earnings in the future."
Operating cash flow turns positive
FitLife Brands, Inc has generated cash of $0.36 million from operating activities during the nine month period as against cash outgo of $0.52 million in the last year period. The company has spent $0.02 million cash to meet investing activities during the nine month period as against cash outgo of $0.40 million in the last year period.
Cash flow from financing activities was $0.12 million for the nine month period as against cash outgo of $0.38 million in the last year period.
Cash and cash equivalents stood at $1.99 million as on Sep. 30, 2016, down 34.97 percent or $1.07 million from $3.05 million on Sep. 30, 2015.
Working capital drops significantly
FitLife Brands, Inc has witnessed a decline in the working capital over the last year. It stood at $4.76 million as at Sep. 30, 2016, down 35.81 percent or $2.66 million from $7.41 million on Sep. 30, 2015. Current ratio was at 1.80 as on Sep. 30, 2016, down from 2.94 on Sep. 30, 2015.
Cash conversion cycle (CCC) has increased to 63 days for the quarter from 55 days for the last year period. Days sales outstanding went down to 61 days for the quarter compared with 63 days for the same period last year.
Days inventory outstanding has increased to 61 days for the quarter compared with 44 days for the previous year period. At the same time, days payable outstanding went up to 59 days for the quarter from 52 for the same period last year.
Debt increases substantially
FitLife Brands, Inc has witnessed an increase in total debt over the last one year. It stood at $3.10 million as on Sep. 30, 2016, up 54.58 percent or $1.09 million from $2.01 million on Sep. 30, 2015. Total debt was 17 percent of total assets as on Sep. 30, 2016, compared with 16.47 percent on Sep. 30, 2015. Debt to equity ratio was at 0.26 as on Sep. 30, 2016, down from 0.27 as on Sep. 30, 2015. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: editor@irisindia.net
