DENVER, CO -- (Marketwire) -- 04/01/13 -- MusclePharm Corporation (OTCQB: MSLP) ("MusclePharm"), a nutritional supplement company focused on active lifestyles, announced today the financial results for the year ended December 31, 2012.
For the year ended December 31, 2012 ("FY 2012"), MusclePharm reported gross sales prior to accounting for advertising related credits that were granted to customers of $77.8 million, an increase of 267% as compared to $21.2 million for the year ended December 31, 2011 ("FY 2011"). After accounting for advertising related credits that were granted to customers, MusclePharm reported net sales of $67.1 million in FY 2012, an increase of 290% as compared to $17.2 million in FY 2011. Gross margin in FY 2012 was 21.4% as compared to 13.8 % in FY 2011. The net loss attributable to common stock holders for FY 2012 was $18.9 million as compared to a net loss of $23.3 million for FY 2011.
Commenting on the announcement, MusclePharm Founder & CEO, Brad Pyatt, stated, "As in previous years, our strategy in 2012 was focused on growing sales and increasing awareness for the award-winning MusclePharm brand. While our 2013 strategic focus remains strongly biased on growing sales and increasing brand awareness, we anticipate being able to do so on a profitable basis. We are also encouraged with the recent strengthening of our balance sheet having completed two separate equity financings over the past sixty days totaling $18 million in gross proceeds."
ABOUT MUSCLEPHARM CORPORATION
MusclePharm is a healthy lifestyle company that develops and manufactures nutritional supplements which address active lifestyles, including muscle building, weight loss and maintaining general fitness through a daily nutritional supplement regimen. The products are formulated through a six-stage research process using the expertise of leading nutritional scientists. MusclePharm's products are sold to consumers in more than 90 countries and available in over 10,500 U.S. retail outlets, including Dick's Sporting Goods, GNC, Vitamin Shoppe and Vitamin World. MusclePharm products also are sold through more than 100 online channels globally, including bodybuilding.com, amazon.com and vitacost.com. MusclePharm also owns FitMiss™ (http://fitmiss.com/), a branded line of fitness supplements which is designed, dosed and formulated specifically for women with active lifestyles. For more information, please visit http://musclepharm.com/.
FORWARD-LOOKING STATEMENTS
This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities and Exchange Act of 1934, as amended. Statements that are not a description of historical facts constitute forward-looking statements and may often, but not always, be identified by the use of such words as "expects", "anticipates", "intends", "estimates", "plans", "potential", "possible", "probable", "believes", "seeks", "may", "will", "should", "could" or the negative of such terms or other similar expressions. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in the Company's business. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's Annual Report on Form 10-K/A for the fiscal year ended December 31, 2011, the Company's Quarter Reports on Form 10-Q and other filings submitted by the Company to the SEC, copies of which may be obtained from the SEC's website at www.sec.gov. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
The Company has determined that advertising related credits that were granted to customers fell within the guidance of ASC No. 605-50-55 ("Revenue Recognition" - Customer Payments and Incentives - Implementation Guidance and Illustrations). The guidance indicates that, absent evidence of benefit to the vendor, appropriate treatment requires netting these types of payments against revenues and not expensing as advertising expense.
The Company records store support, giveaways, sales allowances and discounts as a direct reduction of sales.
Sales for the years ended December 31, 2012 and 2011 are as follows:
Year Ended December 31,
2012 2011
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Sales $ 77,768,138 $ 21,197,518
Discounts (10,712,923) (3,984,882)
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Sales - Net $ 67,055,215 $ 17,212,636
Year ended December 31, 2012 compared to the year ended December 31, 2011.
Year Ended December 31,
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2012 2011
------------- -------------
Sales - net $ 67,055,215 $ 17,212,636
Cost of sales 52,726,934 14,845,069
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Gross profit 14,328,281 2,367,567
General and administrative expenses 23,064,092 18,587,727
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Loss from operations (8,735,811) (16,220,160)
Other expense (10,216,984) (7,060,790)
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Net loss (18,952,795) (23,280,950)
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Net loss per share - basic and diluted $ (13.00) $ (70.30)
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Weighted average number of common shares
outstanding during the period - basic and
diluted 1,458,757 331,159
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MusclePharm Corporation and Subsidiary
Consolidated Balance Sheets
December 31,
--------------------------
2012 2011
------------ -----------
Assets
Current Assets:
Cash $ - $ 659,764
Cash - restricted 9,148 -
Accounts receivable - net 3,302,344 2,569,092
Inventory 257,975 -
Prepaid giveaways 358,800 -
Prepaid stock compensation 44,748 534,456
Prepaid sponsorship fees 6,249 203,333
Deferred equity costs 698,500 -
Other 272,117 50,188
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Total current assets 4,949,881 4,016,833
Property and equipment - net 1,356,364 907,522
Debt issue costs - net 335,433 68,188
Other assets 125,049 53,585
------------ -----------
Total assets $ 6,766,727 $ 5,046,128
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Liabilities and Stockholders' Deficit
Current Liabilities:
Accounts payable and accrued liabilities $ 11,721,205 $ $9,359,073
Customer deposits 336,211 8,047
Debt - net 4,463,040 1,281,742
Derivative liabilities - 7,061,238
------------ ------------
Total Current Liabilities 16,520,456 17,710,100
Long Term Liabilities:
Debt - net 4,523 307,240
============ ============
Total Liabilities $ 16,524,979 $ 18,017,340
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Commitments and contingencies:
Stockholders' Deficit:
Preferred stock, $0.001 par value, Series A
Convertible Preferred Stock, 5,000,000
shares authorized, none issued and
outstanding - -
Preferred stock, $0.001 par value, Series B
Preferred Stock, 51 shares authorized, 51
shares issued and outstanding - -
Preferred stock, $0.001 par value, Series C
Convertible Preferred Stock, 500 shares
authorized, 190 and 190 issued none and 190
outstanding - -
Common Stock, $0.001 par value; 100,000,000
shares authorized, 2,778,404 and 712,860
issued and 2,747,308 and 712,860
outstanding 2,778 713
Treasury Stock, at cost; 31,096 and zero
shares (460,978) -
Additional paid-in capital 54,817,341 32,184,756
Accumulated deficit (64,109,476) (45,156,681)
Accumulated other comprehensive loss (7,917) -
------------ ------------
Total Stockholders' Deficit (9,758,252) (12,971,212)
------------ ------------
Total Liabilities and Stockholders' Deficit $ 6,766,727 $ 5,046,128
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Amounts set forth reflect the effect of the Company's 1:850 reverse split effective November 26, 2012.
MusclePharm Company Contact:
John H. Bluher
COO
Telephone: 303-618-0902
Email Contact
MusclePharm Investor Contact:
The Del Mar Consulting Group, Inc.
Robert B. Prag
President
Telephone: 858-794-9500
Email Contact
Alex Partners, LLC
Scott Wilfong
President
Telephone: 425-242-0891
Email Contact
