Muscle Pharm Corporation (MSLPQ)

[crossroad]

Great analysis, Odessa. I mentioned in one of my previous posts that operational profitability for BSN at the time they were bought out were not far off from where MP is today. If you look at the following press release by Glanbia, you will see BSN's sales were $135.4 M and EBIT was $10.1 M (adjusted EBIT was $16.3 M). Even if we take higher of the two profit numbers, adjusted EBIT of $16.3 M, you will notice they actually were not that profitable. I guess they broke even at $70 M sales-level and made money of revenue in excess of $70 : 25% on $65.3 M or $16.3 M. How does it compare with MP's current number?

webink: http://miranda.hemscott.com/servlet/HsPublic?context=ir.access&ir_option=RNS_NEWS&ir_client_id=3407&item=583915836281170

Optimum's profitability was better as they sold $50 M/year more than BSN. Their operating profit was $32 M on sales of $185 M. Again, $16.3 M + 25% of $50 M = ~$29 M. That number also compares well with MP's numbers. The company has a lot of governance issues, but their growth is phenomenal and operating metrics are comparable with industry leaders'. We will see better results going forward. JMO