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With Celcius valuation MSLP should be trading at $0 or a negative number. MLSP has proven to never be profitable at any revenue level.
Even basebalplayr33 agreed with codie when he made that point several months ago. MSLP was unprofitable at the $5m in annual revenue and more unprofitable at the $50m in quarterly revenue.
MSLP just posted a $16m loss on $32m in revenue. MSLP loses $.50 cents on every $1 in sales in the most recent quarter.
MSLP will go to $0 while Celcius should continue to climb.
Goldman Sachs or the Bankrupt Fumbling Kick Returner?
TEH has made his choice. LOL
They already had that facility. It makes some shampoo and cosmetics. Has about $10m in revenues and $2m in real cash losses in 2014. Nothing to do with any product from MSLP.
When the company is releasing ancient copies of old press releases and trying to infer there is something new, it shows you how desperate the damage control is going.
Watch out for earnings (LOL) in less than a week or two.
New lows coming.
Celcius has a 20% larger market cap than MSLP even though the former has 1/10th of the revenue of the latter.
The difference?
Celcius is cash flow and EPS profitable on just $5m in quarterly revenue while MSLP profits are as elusive as a unicorn.
See the difference when your company is run by Goldman Sachs investment banker vs a bankruptcy filing kick returner with a fumbling problem?
Who wants to bet on the a kick returner who can't hold on to the ball with a history of filing bankruptcy?
Evidently everyone here except for Cody, adam and me. That's why Goldman's is such an exclusive club. You must possess exceptional intelligence and skills that very few have. Congratulations Cody and Adam. You are Goldman material.
Thanks for the compliment. bellator exec was the most intelligent contributor I have ever read. I was a lurker as I had nothing to add that he couldn't say better. He taught me so much about this company. He posted when he exited. He wrote to learning curve that he covered 25% of his short position immeidately after the Q3 results were reported and that he would cover the rest after Q4 results. I assume he made his gains and has moved on to other opportunities as this stock is in death throes.
PJ, My statement is 100% factual. Here is a transcript excerpt from the Q3 conference call referencing a decline in revenue in MSLP's largest sales channel; specialty. Go back an read my post in detail and revenues in all channels are declining in the core business of MSLP product. Remember this comment was made referencing Q3 that reported $47m in revenue but $7m of that revenue was smoke and mirrors bargain purchase gain based on intangible assets that was somehow reported as operating income and not a balance sheet item. NOT GAAP. So MSLP really did $40m in rev and if you strip out the BZNE $2m then you get $38m from core ops. MSLP has 4 quarters in row of decline real revenue from core operations of MSLP products. Q4 drop was dramatic but there has been a trend for a while now and YOY quarterly comp numbers are now showing a decline.
Brad J. Pyatt - President and Chief Executive Officer
Good morning.
Joseph A. Gomes - William Smith & Co.
Just can you give us a little insight here, during the quarter the specialty distribution channel actually declined in revenues and I just wonder if you can kind of gives us a little bit more insight as to what’s going on there in that channel?
Brad J. Pyatt - President and Chief Executive Officer
Richard, go ahead and answer that one.
Celcius is profitable though sales are only $5m a quarter. Expenses are very tame. Company has urban uber entrapeneur Russ Simmons and his former wife Kimora who is now married to a Goldman Sachs banker who is influential in its fundamentals.
In other words, nothing like the MSLP looting mentality.
Jimmy,
Wynnefield bought in at around $9 a year ago.
If they were so smart they would have waited or not bought in at all. Wynnefield has turned $9m dollars into $4.4m in one year.
Is a negative 50% return on capital a good investment? A hedge fund wouldn't stay in business long with that performance but if you judge that differently, okay.
As for Capstone, a non sequitar. You can sign an agreement to buy the Taj Mahal. Doesn't mean you own it or will ever buy it.
Capstone deal is literally nothing. A worthless contract with no penalty if $90m in sales is not reached and warrants carry cancellation clause and have no value yet overstate the current value of Capstone.at a fixed price of $200m.
Phil Frost convertible has him in @ $4 a share and he has sold roughly half his position at a higher price. Decent performance and significantly hedged.
Wynnefield Capital is in 1.04m shares @ $9 and has accumulated a $4.5m loss so far.
You cite Wynnefield as an example of positive comp? LOL
Too funny,
It took MSLP the last 3 years that they really just want to be Quest Nutrition without actually owning your own manufacturing.
That is quite the circuitous route and an inefficient burn of capital.
The results are similar to Brad claiming he is an NFL player to currently coaching his winless high school football team at his former alma mater.
stup,
yes I know what that means. You selected one very specific date to attempt to prove a point that is no longer valid.
MSLP is now showing YOY quarterly losses and one doesn't have to wait 12 more months to prove your point irrelevant.
MSLP is presently not growing revenues any longer. The opposite is occurring. Revenues are declining massively quarterly on a YOY basis for 4 consecutive quarters showing declining revenues from core operations of MSLP products. 12 consecutive months of declining revenues trumps your cherry picked one date.
FACT!
easy Jimmy Jams. MSLP stopped paying Accounts Payable and used the incoming cash flow to continue to operate temporarily while selling off $20m of inventory they had in the warehouse but had not paid for.
The problem is one of their two suppliers cut them off and they are going to pay the price in the coming weeks.
You can only channel stuff and not pay for so long. Ask Bernie Madoff.
No new borrowings (due to mutltiple broken covenants on LOC and pledging all company's assets as collateral) and growing AP due to no pay using cash flow for operations is a sign of desperation.
MSLP has serious going concern issues. You will see the official announcement soon. Too late for common shareholders though.
codie, don't leave out Pyatt said gross profit (rev minus COGS) would be 33% and it was 23% in Q4.
COGS is exploding in the wrong direction leaving exponentially growing cash losses in the wake.
Now we have desperation deals with multiple products, channels and marketing partners all at one time with zero distribution other than the post office. That might work for Tarek Ali in Timbuktu Michigan but not in the real world. How long did the desperation deal with Sam's and Walmart last that Bellator Exec called to a tee several monthe ago? 1 quarter?
It was pure desperation to cover the declining sales as customers reject the cheap chinese sourced product.
CEO has recklessly taken on so much restrictive debt that hocked all the company's assets that it is past the point of no return.
Pyatt is desperately throwing anything and everything against the wall at one time praying for a miracle. A hail Mary.
The Cleveland deal, Black line, Energy Sport launch are signs of weakness, not strength. The company has no cash and was cut off by a supplier that will affect existing product retail channel numbers due to this desperation.
They can only play voodoo channel stuffing for so long before the gig is up.
This is pure desperation.
The $8m Line of Credit covenants state that the balance must be paid down to $3m for a period of days every quarter. That would require more than $5m of free cash to meet the covenant.
The $4m emergency collateral loan that encumbered 100% of MSLP assets restricts any further borrowing from any source until that note is cured, so more than another $4m in free cash is required to open the possibility of any new borrowings.
Of course the interest carrying costs are a drain too.
If MSLP found $10m cash under the bench press at the MPSSI, it wouldn't solve any cash on hand problems. MSLP has taken on the toxic debt and is restricted from new borrowings and is losing money hand over fist on the revenues.
Here is what Brad said last time when the call took place half way through the quarter so you would think he would be speaking with so accuracy with 6 weeks worth of sales already in the bank.
Either Brad is a liar or inept or both. To trust any comment from him today would be an example of Einstein's definition of insanity.
Jack D. Wallace - Sidoti & Company, LLC
So I guess looking at the guidance that’s implied for the fourth quarter revenue somewhere between $40 million to $50 million. If you assume the high end of that in the 33% gross margin, which is the guidance that’s in the beginning of the year, you come up with operating expenses of $16.5 million, is that a good place to think of operating expenses in the fourth quarter.
Brad J. Pyatt - President and Chief Executive Officer
I think that’s right in the ballpark, absolutely.
Another FACT! according to 2014 10K. BZNE generated $10m of revenue in 2014 at a 20% cash loss. BZNE was $2m cash burn not counting the stock repurchase @ $10 a share that now shows an additional $6m cash loss.
Take BZNE revs out as it is non core and a 20% ongoing cash loser and MSLP is running at a $120m annual revenue run rate on MSLP products.
Those forecasting $220m - $365m in revenue are in Fantasy Land.
$120m (reve) * 77% (cogs) = $28.6 - $76m SGA = $47.4m loss
Now add in the $2m BZNE loss and the likely loss would be $50m in 2015 if MSLP could raise enough fresh capital to stay afloat.
That is a more likely forecast as it is based on proven historical metrics as of today.
All the above numbers are the factual metrics reported by MSLP to the SEC for Q4 2014 and extrapolated out for 2015. No pipe dreams. Just FACTS!
40% revenue slide is very concerning. Company is no longer posting revenue growth YOY. The opposite is occurring. Consumers are rejecting the products.
Cost of Goods Sold (COGS) was 77% of total revenue in Q4 2014 is even a larger factor for the MSLP demise.
Yes read that percentage again. JUST the COGS eats 77% of the total revenue. NO MARGINS!
So funny that no longs address this FACT! 77%
COGS is going up (bad) and revenue is going down (bad).
$19m in SGA expense in Q4 left a $16m loss for the quarter.
No cash and 100% of assets hocked for defaulted loan covenants within weeks of signing papers leave MSLP in dire straights now. No 2016 forecast necessary.
MSLP has been pushed out of UFC. Monster Energy is the new primary and Reebok uniform deal starts in a few weeks that eliminates all sponsors from fighters during fight week and fight and those tacky prefight roll up banners will be gone. FACT = SCARY
The UFC announced on Tuesday the finalization of a landmark six-year partnership with Reebok, a deal which could dramatically shift the role of sponsorships in mixed martial arts. Beginning the week of July 6, 2015, the UFC will institute a sweeping new uniform program which will effectively replace all in-cage fighter sponsorships with kits produced exclusively by Reebok.
"We look at this as Reebok and the UFC are essentially changing the sports landscape once again," said UFC CEO and co-owner Lorenzo Fertitta. "This clearly has never been done in combat sports. Reebok will be the exclusive worldwide outfitter of the UFC, and as part of this deal and this partnership, this will be the biggest non-broadcast partnership that our company has ever signed, so it is significant.
"We're continuing to do things and implement things to elevate the level of the sport, and really take it in a place where other major sports leagues are. So the way that this outfitting policy will work is that it will allow for each of the fighters' individuality, but also will provide a unique, iconic and consistent look for all the athletes, obviously very different from where the sport has been in the past, where it is essentially, for lack of a better word, a bit of a mish-mash with various different sponsors, different looks, brands, and styles."
Fertitta elected not to disclose the value of the deal, repeating only that it was the "largest deal we've ever signed" outside of broadcast deals.
Participation in the new uniform policy will be mandatory for every fighter under UFC contract.
In calling the partnership a "seminal moment" for the UFC and the sport of mixed martial arts, Fertitta explained that "the vast majority, if not all, of the revenues" from the deal will be redistributed to the UFC's roster. Fighters will earn a tiered sponsorship income dependent on their ranking the day of weigh-ins prior to their fight, regardless of card placement. Champions will bank the most money, followed by (in descending order): fighters ranked No. 1 to No. 5 in their division, fighters ranked No. 6 to No. 10, fighters ranked No. 11 to No. 15, and unranked fighters.
While not delving deep into detail, Fertitta explained that each fighter will be distinguished by their own personalized kit, and that in addition to a flat sponsorship income, athletes are also expected to receive 20-percent royalty payments dependent on sales for their individualized kits into perpetuity, meaning retired fighters will also draw from the program.
"Imagine Cain Velasquez," explained Fertitta. "He obviously will have a certain look, feel, and appeal to his merchandise and what he wears into the Octagon. He will be compensated based upon how much of that actually sells, over and above what he will be paid as defending champion for a fight.
"At the end of the day, the more successful you are and the more demand there is for you, as an individual brand, [the more] you're going to sell. That's the way the system works, it's a capitalistic system here at the UFC."
Though he didn't offer a timetable, Fertitta indicated that plans are also in the works to create kits for retired "legends" of the sport. Cornermen on fight night will also be beholden to the uniform policy.
Fighters will still be allowed to carry additional non-UFC sponsors under the program, however those sponsors may not be on display for any UFC-designated fight week events, which includes open workouts, media days, press conferences, weigh-ins, and fight nights -- a wrinkle that effectively brings an end to the tradition of fight night banners.
"You guys have seen it when we've had press conferences before and fighters are upset about sponsors, guys are walking in wearing UFC clothes because they don't want to haggle with the sponsors anymore," said UFC President Dana White. "Whether you're at the top of the heap, or you're at the bottom, (now) you know every time you step in there, you're getting paid. You have a sponsorship, you're getting paid every time you get in. And it's more incentive to get bigger and get better."
"Ultimately the consumers and the fans are going to decide," Fertitta added. "They're going to be voting with their wallets, so they're the ones who are going to be deciding essentially who makes sense to be in the retail space."
Fertitta indicated that several uniform colors and styles will be available to both fighters and consumers, including board shorts, vale tudo shorts, and "skorts."
The UFC rankings, other than a few potential and minor exclusivity tweaks, are expected to remain the same media-generated entity under the new program, obviously with increased importance due to the tiered sponsorship payout structure.
"[This announcement] is going to help the fighters because it's going to allow them to focus more on their training, and not have to run around and try to get some of these sponsors that you guys are all familiar with, that aren't blue-chip Fortune 500 companies, I might add," Fertitta said. "If there is a sponsor on our uniform or on our kit, it's going to be a major global brand like you see in some of these other sports, like the European soccer leagues. So just that alone is going to completely change the perception of the sport, the perception of the athlete, the level that we're at.
"This is a true game changer. We've had a lot of game changers as we've built this company, starting from ‘The Ultimate Fighter,' which was a game-changer when we did our deal with Spike, to when we got Budweiser -- the leading sports sponsor -- onboard with our brand, to landing our FOX deal and partnering up with Electronic Arts. Reebok is right there at the highest level in that group of some of the seminal moments, and I think we'll look back in 10 years, like we look back at when ‘The Ultimate Fighter' launched, we'll look back at this announcement as being that important."
Which of these is the best reason to invest in MSLP?
MSLP products contain the cheapest Chinese ingredients and due to using contract manufacturers get no savings on the COGs. MSLP are the worst quality yet cost a lot.
MSLP revenues have declined 40% in the last 4 quarters as more consumers become aware of the Chinese sourcing and other factors.
MSLP is under a very aggressive SEC investigation that eliminates any acquisition.
MSLP has completely encumbered 100% of its assets to a lender that has prohibited any further borrowing until the loans are payed off. MSLP is operating under a temp waiver after defaulting on multiple covenants of the loan only weeks after signing for it.
MSLP has no cash and has been cut off by its contract manufacturer for no pay.
MSLP margins are a joke. COGS in Q4 was $.82 for every dollar or revenue and SGA was $19M in the quarter. MSLP lost $16m in the quarter.
MSLP CEO declared personal bankruptcy and can't manage his household budget. Now we can see why the bank loan covenants were broken only weeks after signing for the loan. The CEO is reckless.
What's to like?
Again these are just FACTS and not opinion.
I just read in the 10K that the CEO of MSLP declared bankruptcy. Wow.
The guy can't even balance a check book or manage his household bills and some investors think he can run a company?
This company is a joke.
I wouldn't loan him a dime.
ANB needs to foreclose on the MLSP assets asap while it still can.
adamsapples,
You get it. Big fan. Enjoy your posts too.
Margins are shrinking as revenues are declining. Management is desperate and throwing MSLP labels on anything they can from contract manufacturers as consumers reject current MSLP products at a record pace. "Got anything with banana in it we can throw our label on?"
BB.com who receives a $100K a month slotting fee from MSLP is barely registering a blip for MSLP on the Top 50 list. Jym and Optimum Nutrition dominate.
New lows coming very soon. Earnings day should be announced shortly.
Will there be a Q & A this time? Like anyone cares. I posted the transcript of Q3 conference call in October when Pyatt was forecasting $50m in revenues in Q4 (Q4 was already half over so tracking sales numbers should be simple) but MSLP came in at $32m and $15m in losses.
Wow!
I already did several times. MSLP products are sourced from ingredients from Integrity Nutraceuticals, a TN importer of cheap Chinese ingredients and materials that are purchased and manufactured by Capstone and Nutra from these cheap Chinese ingredients and materials and then sold to MSLP for premium pricing. MSLP receives no benefit from the cheap cost chinese ingredients and materials. Capstone and Nutra do. MSLP products are some of the worst quality products on the market and Petco stopped selling similar sourced products to pet owners for their pets as they found they were unfit for consumption for dogs and other pets. MSLP has no qualms selling their substandard products though. 4 out 10 former consumers now refuse to buy MSLP products based on the 40% decline in revenue since Q1 2014.
Call MSLP corporate for yourself for confirmation. If you don't want to know the truth or deny it, don't call. I don't care. I have done my due diligence and know the facts.
Check with the SEC filings for all the financial facts, credit facility facts and SEC Investigation.
MSLP still has more than $13m in cash expenses still left to pay just on the endorsement deals in 2015 not counting the minor Cleveland deal that terms have not been released.
SGA is exploding and revenues are crashing.
Doomsday scenario with supplier cutting of MSLP due to non payment that has affected inventory channels and will be reflected in future sales.
New lows coming soon.
I don't care if you buy or sell the stock. I made my own decision some time ago.
More proof of the cash flow problems at MP. Cory is now working for tips to get by.
Brad has promised to train Dan Gilberts little son at the state of the art MPSSI with a squat everyday program.
http://terezowens.com/dan-gilberts-son-is-a-pimp/
That's okay Obrien. Some people like to breathe asbestos too.
4 out of 10 former MSLP consumers have now stopped using MLSP products due to the cheap Chinese ingredients or other factors.
We have seen a 40% decline in revenue in just the past couple quarters.
FACT
If you were really a consumer and concerned about the fact that MSLP sources its products from cheap Chinese ingredients imported from Integrity Nutraceuticals, you could call the corporate office.
They will tell you its true.
Instead you want to throw a temper tantrum as you don't want the public to actual FACTS!
MSLP products are sourced from the cheapest Chinese ingredients and materials in the world. MSLP should be embarrassed they are selling products that Petco has removed from its shelves from being consumed by pets.
Petco won't sell dog food with cheap Chinese ingredients but MSLP has no qualms about selling it in their products!
MSLP products are sourced with cheap Chinese ingredients and materials. The bottom of the barrel for quality.
MSLP products are sourced from Integrity Nutraceuticals, an importer of the cheapest Chinese ingredients.
Petco stopped selling Chinese dog food as it was being rejected by pet owners as being unfit for consumption by pets.
MSLP products are being rejected by the market as more and more consumers are becoming aware of the sourcing of MSLP ingredients and materials.
Revenues are off 40% and trending lower.
MLSP management will not dispute theses facts.
Truth in advertising requires MSLP should be including the marketing slogan: Did you eat your cheap Chinese ingredients today?
Debt to sales the last 2 quarters is 1:4
MSLP has taken on $12m in debt against $73m in total revenue the past 180 days.
This is trending toward implosion quickly.
-$15 million loss last Q. No pay slow pay accounts payable.
MSLP was cut off by contract manufacturer for non payment.
Current lender holds 100% of MSLP assets as collateral and has restricted any further borrowing until repayment or foreclosure on assets.
New lows very soon.
Believe Pyatt? This from the Q3 conference call transcript:
Jack D. Wallace - Sidoti & Company, LLC
So I guess looking at the guidance that’s implied for the fourth quarter revenue somewhere between $40 million to $50 million. If you assume the high end of that in the 33% gross margin, which is the guidance that’s in the beginning of the year, you come up with operating expenses of $16.5 million, is that a good place to think of operating expenses in the fourth quarter.
Brad J. Pyatt - President and Chief Executive Officer
I think that’s right in the ballpark, absolutely.
Mikey, wrong.
I did not edit nor change nor omit a single word of the cut and paste from the 10K. It is complete in its entirety. I didn't pick and choose anything other than the complete text from the MSLP disclosure. The train is coming. Keep laying on the tracks if you choose.
FACT!
just because they are detrimental to your investment doesn't mean they are not fact.
The fact is MSLP has been cut off by their contract manufacturer for non payment as cash flow can't cover the bills.
The fact is MSLP revenue has declined 40% since Q1 and is now producing declining Year over Year comps.
The fact is SGA expenses have grown from $12m a quarter to $19m a quarter despite revenue decline of 40% during the that comparison period.
MSLP has no cash on hand after borrowing $12m to cover negative cash flow the past 2 quarters including and emergency $4m loan that encumbered 100% of the company's assets as collateral.
MSLP has serious and immediate going concern issues
All FACT
This is not the usual boilerplate. MSLP has just released very specific disclosures regarding their financial dire straights. Note the very specific debt figures and the factors listed are very specific to current conditions. This type of disclosure is much different than your typical "going concern" boilerplate. MSLP has very serious going concern issues and has been cut off by their contract manufacturer for non payment. Inventory issues are apparent across several platforms.
Our cash flows and capital resources may be insufficient to make required payments on our indebtedness and future indebtedness.
As of December 31, 2014, we had a line of credit with a balance of $8.0 million. Additionally in February 2015, the Company entered a commercial loan agreement for $4.0 million. Currently, there is no additional borrowings available with either debt instrument.
Our indebtedness could have important consequences to the Company. For example, it could:
make it difficult for us to satisfy our debt obligations;
make us more vulnerable to general adverse economic and industry conditions;
limit our ability to obtain additional financing for working capital, capital expenditures, acquisitions and other general corporate requirements;
expose us to interest rate fluctuations because the interest rate on the debt under the line of credit facility is variable (prime +2%);
require us to dedicate a portion of our cash flow from operations to payments on our debt, thereby reducing the availability of our cash flow for operations and other purposes;
limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; and
place us at a competitive disadvantage compared to competitors that may have proportionately less debt and greater financial resources.
In addition, our ability to make scheduled payments or refinance our obligations depends on our successful financial and operating performance, cash flows and capital resources, which in turn depend upon prevailing economic conditions and certain financial, business and other factors, many of which are beyond our control. These factors include, among others:
economic and demand factors affecting our industry;
pricing pressures;
increased operating costs;
competitive conditions; and
other operating difficulties.
If our cash flows and capital resources are insufficient to fund our debt service obligations, we may be forced to reduce or delay capital expenditures, sell material assets or operations, seek to obtain additional capital, or restructure our debt. There is no assurance we will be able to access capital on terms that would be acceptable. In the event that we are required to dispose of material assets or operations to meet our debt service and other obligations, the value realized on such assets or operations will depend on market conditions and the availability of buyers. Accordingly, any such sale may not, among other things, be for a sufficient dollar amount. Our obligations pursuant to the loan documents are secured by a security interest in all of our operating company's inventories, receivables and proceeds from those items. The foregoing encumbrances may limit our ability to dispose of material assets or operations. We also may not be able to restructure our indebtedness on favorable economic terms, if at all.
We may incur additional indebtedness in the future. Our incurrence of additional indebtedness would intensify the risks described above.
MSLP signing with Arena Football team in Cleveland makes perfect sense.
MSLP specializes in cheap knock off products (all its products sourced in China) with little to no interest from consumers but hyping the possibilities to desperate levels.
Now it all makes sense. MSLP found its niche. Sponsoring an Arena Football team is brilliant and will transform the company and the Arena Football League into the largest company and league in the world.
Watch out NFL. The Arena League (backed by MSLP) is coming.
Now if MSLP can just perfect that Protein Beer and get it on tap at the Q, I'm in.
I used to feel that the only people interested in Cleveland are just a few Clevelanders as most Clevelanders are still upset and jealous they can't afford to relocate to Detroit. Now I am considering moving to Cleveland. Where is Cleveland?
What does Brazil, UK, etc... have to do with this deal?
TV doesn't show the mascot shooting out tee shirts or CC bars during a timeout at "select" Cavs games that could mean just 1 game and 1 timeout giveaway to a few 3rd level seating attendees with a chinese protein bar shot out of a cannon.
This isn't the NBA Playoffs brought to you by MSLP CC with Charles Barkley and Kenny Smith. Chuck could make the free Combat Crunch deal a loser all by himself if its all you can eat.
my reply is the same.
very significant fixed costs associated.
Benefits are unquantifiable to me. Do I want to push around the mosh pit for a chance of a free CC bar shot out of a cannon by the team mascot or do I want a Quicken Loans tee shirt?
Non event to me as it's like someone giving me a copy of the National Enquirer to show me what Kim Kardashian is wearing during the financial meltdown.
I don't see where I addressed LeBron at all.
This deal for "select" Cavs playoff games is with the Cavs, not LeBron.
Tiger doesn't market MLSP products and he is being paid $5m by MSLP.
I didn't address LeBron but are you inferring he will be eating CC bars during timeouts and while using an MSLP logo towel after flopping on defense?
I don't understand your temper tantrum.
the taste is the least significant factor if you read my posts that have disclosed the dire straights that are leading quickly to bankruptcy.
You are now going to consume your MSLP that contains 100% cheap Chinese ingredients and whey.
Informed consumers choose Optimum Nutrition who sources their whey from 100% USA and Euro farms.
There are some cheap Chinese toothpaste manufacturers too. You interested in their products too?
A: The Cavs deal says it is for "only select Cav home playoff games". That is pretty short term and vague.
B: If "select" mean "all" (it doesn't) Cavs may play as few as 2 more home playoff games and possibly as many as 12 if the Cavs win all remaining series and the series all go 7 games. Not likely.
The costs associated with this promotion are fixed. The benefits are not quantifiable to me. Is this similar to the mascot shooting out some tee shirts with a insignificant sponsor logo on it? A non-event in my eyes and if the PPS volume and movement today is an indicator, I am not alone. Even "if" there is some very short term movement on this news, there are more substantial factors at play that leave the downside unavoidable.
We've already seen what happens when MSLP gets in near the ground floor with the UFC, Monster Energy has now displaced them with all the ring girls logos and center of Octagon. Monster Energy is now the primary endorsor while MSLP will no longer have select fighters logo'd up as Reebok has signed the exclusive for that real estate. MSLP is being pushed out the cage and left with US Wresting team.
Here is the kicker. FACT on why the supplier was forced to cut MSLP off. The supplier was restricted from filing a lien and was entitled to no sufficient legal recourse.
Certain loan documents governing our indebtedness contain various covenants limiting the discretion of our management in operating our business.
Certain loan documents we have entered into with third parties contain, subject to certain carve-outs, various restrictive covenants that limit our management's discretion in operating our business. In particular, these instruments limit our ability to, among other things:
·
incur additional debt;
·
grant liens on assets;
·
make investments, including capital expenditures;
·
sell or acquire assets outside the ordinary course of business;
16
·
engage in transactions with affiliates; and
·
make fundamental business changes.
Certain of such loan documents require us to (i) maintain certain financial ratios and (ii) limit our capital expenditures (to the extent we require additional financings). If we and our subsidiaries fail to comply with the restrictions in such loan documents, a default may allow the creditors under the relevant instruments to accelerate the related debt and to exercise their remedies under these agreements, which will typically include the right to declare the principal amount of that debt, together with accrued and unpaid interest and other related amounts, immediately due and payable, to exercise any remedies the creditors may have to foreclose on assets that are subject to liens securing that debt and to terminate any commitments they had made to supply further funds.
MSLP released this just a couple weeks ago. Now you know why there are inventory shortage issues experienced by some posters here. MSLP was cut off by supplier for non payment due to cash flow issues and additional borrowing restrictions by the two credit facilities that MSLP has already tapped completely.
Our cash flows and capital resources may be insufficient to make required payments on our indebtedness and future indebtedness.
As of December 31, 2014, we had a line of credit with a balance of $8.0 million. Additionally in February 2015, the Company entered a commercial loan agreement for $4.0 million. Currently, there is no additional borrowings available with either debt instrument.
Our indebtedness could have important consequences to the Company. For example, it could:
·
make it difficult for us to satisfy our debt obligations;
·
make us more vulnerable to general adverse economic and industry conditions;
·
limit our ability to obtain additional financing for working capital, capital expenditures, acquisitions and other general corporate requirements;
·
expose us to interest rate fluctuations because the interest rate on the debt under the line of credit facility is variable (prime +2%);
·
require us to dedicate a portion of our cash flow from operations to payments on our debt, thereby reducing the availability of our cash flow for operations and other purposes;
·
limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate; and
·
place us at a competitive disadvantage compared to competitors that may have proportionately less debt and greater financial resources.
In addition, our ability to make scheduled payments or refinance our obligations depends on our successful financial and operating performance, cash flows and capital resources, which in turn depend upon prevailing economic conditions and certain financial, business and other factors, many of which are beyond our control. These factors include, among others:
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economic and demand factors affecting our industry;
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pricing pressures;
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increased operating costs;
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competitive conditions; and
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other operating difficulties.
If our cash flows and capital resources are insufficient to fund our debt service obligations, we may be forced to reduce or delay capital expenditures, sell material assets or operations, seek to obtain additional capital, or restructure our debt. There is no assurance we will be able to access capital on terms that would be acceptable. In the event that we are required to dispose of material assets or operations to meet our debt service and other obligations, the value realized on such assets or operations will depend on market conditions and the availability of buyers. Accordingly, any such sale may not, among other things, be for a sufficient dollar amount. Our obligations pursuant to the loan documents are secured by a security interest in all of our operating company's inventories, receivables and proceeds from those items. The foregoing encumbrances may limit our ability to dispose of material assets or operations. We also may not be able to restructure our indebtedness on favorable economic terms, if at all.
We may incur additional indebtedness in the future. Our incurrence of additional indebtedness would intensify the risks described above.
You just bought old stale inventory that turns over very slowly. You admitted your first choices were out of stock and were forced to buy something you didn't want. Hope you didn't pay full price. MSLP was cut off by their supplier for non payment. MSLP had to borrow an emergency $4m and hocked 100% of the company's assets as a first step to possible reordering.
Now inventory is tight as a result. The supplier is not keen to produce too much and take on more risk with MSLP finances in dire straights. MSLP is now running down old inventory to the bottom for cash flow as they need to with no cash in bank right now.
Supplier is in limbo until MSLP sells old inventory for cash flow to pay the Account Payable to the supplier.
It's still too close to call on whether you will be able to take delivery of your first choice flavor in the next month or two. MSLP has going concern issues.