MusclePharm Announces Record Breaking Fourth Quarter and Fiscal Year
2020 Financial Results; Primed for Return to Growth
Full Year Gross Margins Improve over 1,900 basis points to 30%
Operating Expenses Decline $6.8 million or over 29%
Plans to Leverage Leading Brand by Entering New Categories to return to Growth
CALABASAS, Calif., March 30, 2021 (GLOBE NEWSWIRE) — MusclePharm Corporation (OTCMKTS: MSLP), a global provider of leading sports nutrition & lifestyle branded nutritional supplements, today reported financial results for the fourth quarter and the fiscal year ended December 31, 2020.
Ryan Drexler, President and Chief Executive Officer, stated, “Despite 2020 being a challenging year due to Covid-19, we executed at the highest level achieving strong results by turning a profit for the first time in our Company’s history. We reduced operating expenses by 29%, expanded our gross margins to over 30% and strategically expanded our omni-channel strategy by increasing penetration with our largest online customers. Our results this year are a testament to the turnaround strategy we set forth two years ago to dramatically restructure MusclePharm and increase our focus on profitability, and I’m incredibly proud of the hard work put forth by the entire MusclePharm team.”
Mr. Drexler continued, “We have one of the strongest brands in the health and fitness industry and are very optimistic that we will continue to turnaround our business in 2021 by focusing on higher margin channels, offering customers products where they prefer to shop, improved cost containment and implementing additional pricing controls. Our Company is well known for providing superior products and we expect new distribution and brand expansion opportunities that will enable us to generate long-term profitable growth.
The following are key financial highlights for the period. Reconciliations of certain GAAP to non-GAAP measures are provided later in this press release.
Fourth Quarter 2020 Compared to Fourth Quarter 2019
? Revenue, net was $15.1 million compared to $17.4 million.
? Gross margin improved to 31.7% compared to 14.4%.
? Net income was $2.8 million compared to a net loss of $(3.5) million.
? Diluted income per share was $0.06 compared to diluted loss per share of $(0.11).
? Adjusted EBITDA was $0.9 million compared to negative Adjusted EBITDA of $(2.6) million.
Fiscal Year 2020 Compared to Fiscal Year 2019
? Revenue, net was $64.4 million compared to $79.7 million.
? Gross margin improved to 30.4% compared to 10.9%.
? Net income was $3.2 million compared to a net loss of $(18.9) million.
? Diluted income per share was $0.08 compared to diluted loss per share of $(0.92).
? Adjusted EBITDA was $3.3 million compared to negative Adjusted EBITDA of $(14.3) million.
Non-GAAP Financial Measures
Within this press release, the Company makes reference to a non-GAAP financial measure (Adjusted EBITDA), which has a directly comparable GAAP financial measure (net income). EBITDA is defined as net income/(loss) excluding interest, income taxes and depreciation and amortization. Adjusted EBITDA, in addition to those amounts included in EBITDA, is further adjusted for items such as stock-based compensation and gain or loss on disposal of property and equipment and gain on settlement of payables.
EBITDA is provided so that investors have the same financial data that management uses to assess the Company’s operating results with the belief that it will assist the investment community in properly assessing the ongoing performance of the Company for the periods being reported and future periods. The presentation of this additional information is not meant to be considered a substitute for measures prepared in accordance with GAAP.
Forward-Looking Statements
Information provided and statements contained in this press release that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Private Securities Litigation Reform Act of 1995. Forward-looking statements include information concerning the Company’s strategy and expansion of its product portfolio. Such forward-looking statements only speak as of the date of this press release and the Company assumes no obligation to update the information included in this press release. Statements made in this press release that are forward-looking in nature may involve risks and uncertainties. Accordingly, readers are cautioned that any such forward-looking statements are not guarantees and are subject to certain risks, uncertainties and assumptions that are difficult to predict, including, without limitation, risks relating to consumer spending may decline or that U.S. and global macroeconomic conditions may worsen resulting in reduced demand for the Company’s products, risks relating to changes in consumer preferences away from the Company’s offerings, risks relating to the effectiveness and efficiency of the Company’s advertising campaigns and marketing expenditures, including existing brands and the launch of new brands, which may not result in increased revenue or generate sufficient levels of brand name and program awareness, risks if the Company becomes subject to health or advertising related claims from its customers, competitors or governmental and regulatory bodies, and risks relating to increased competition from other nutrition providers.
For further details and a discussion of these risks and uncertainties, see the Company’s periodic reports, including the annual report on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K, filed with or furnished to the Securities and Exchange Commission and available at www.sec.gov. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable as of the date made, expectations may prove to have been materially different from the results expressed or implied by such forward-looking statements. Unless otherwise required by law, the Company also disclaims any obligation to update its view of any such risks or uncertainties or to announce publicly the results of any revisions to the forward-looking statements made in this press release.
About MusclePharm, Inc.
MusclePharm® is an award-winning, worldwide leading sports nutrition & lifestyle company offering branded nutritional supplements. Its portfolio of recognized properties include the MusclePharm® Sport Series, Essentials Series, and recently-launched Natural Series, as well as FitMiss™ – a product line designed specifically for female athletes. MusclePharm® products are available in more than 100 countries globally, with its Combat Protein product lineup being the company’s most popular.
Contact:
John Mills, Managing Partner
ICR, Inc.
646-277-1254
John.Mills@Icrinc.com
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