March and April sales increased compared to prior year periods
MusclePharm Corporation a global provider of leading sports nutrition & lifestyle branded nutritional supplements, today reported financial results for the first quarter ended March 31, 2021.
Mr. Ryan Drexler, the Chairman of the Board of Directors and Chief Executive Officer, stated, “I am very pleased with our profitable quarter, despite the sales shortfall due to the temporary supply shortage affecting our industry. With March and April achieving sales increases over the prior year periods we have momentum going into the second quarter, which indicates the great strides we have made during the past year. We have some of the leading brands in the health and fitness industry and are proud to be leveraging the tremendous reach they offer by entering new categories such as energy beverages. With the rollout of three new energy beverages, in addition to tapping into the gender-specific market with our popular FitMiss brand, we are very well positioned to capture a meaningful share of this rapidly growing market.”
“We have delivered positive profit for the last two quarters and it is a testament that the turnaround strategy we started two years ago to dramatically restructure MusclePharm and increase our focus on profitability is working. The expansion into the energy beverage market is only the beginning for our Company and I am optimistic we are in the very early stages of a tremendous long-term growth opportunity at MusclePharm,” said Ms. Sabina Rizvi President and Chief Financial Officer. “We will continue to focus on cost containment, while driving top line growth with our three-prong strategy of growing the core MP brand through broadened distribution and product offerings, focusing on omni-channel by meeting customers where they prefer to shop, and expanding into new distribution and brand expansion opportunities, as illustrated by our upcoming launch into the energy beverage sector.”
The following are key financial highlights for the period. Reconciliations of certain GAAP to non-GAAP measures are provided later in this press release.
First Quarter 2021 Compared to First Quarter 2020
● Revenue, net was $13.1 million compared to $16.2 million.
● Gross margin declined to 28.1% compared to 29.6%.
● Operating expenses declined $0.8 million or 19.8%
● Net income was $94 thousand compared to a net loss of $(60) thousand.
● Diluted income per share was $0.00 compared to $(0.00).
● Adjusted EBITDA was $0.5 million compared to $0.7 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 U.S. GAAP financial measure (net income). EBITDA is defined as net income/(loss) excluding interest, net, 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, gain on disposal of property and equipment, gain on settlements and (recovery) provision for doubtful accounts.
Adjusted 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 U.S. GAAP.
