MusclePharm (MSLP) Reports 2015 First Quarter financial results:
Net Revenue of $41.3 Million
Record sales backlog of $17.1 Million
$3.8 Million cash flow positive, with $4.8 Million in cash.
Reaffirms guidance of $210-$220 Million net revenue for 2015
DENVER, CO -- 05/11/15 -- MSLP today announced financial results for the first quarter ended March 31, 2015.
Operating and Financial Highlights for First Quarter 2015
"We were very pleased with the fundamentals of our business in the first quarter and the positive momentum we have built in continued revenue contributions, positive cash flow and sustainable margins," said Brad Pyatt, MusclePharm's chairman and chief executive officer. "While our year-over-year revenue was down slightly, due largely to the timing of our key Arnold Classic sales event, we closed the quarter with $17.1 million in sales backlog orders and we are on track for strong revenue growth for the remainder of the year driven by the continued strengthening of our core products, new product releases, expanding our distribution network and entering into new retail outlets. At the same time, we are actively managing our cash position, with strong increases in cash flow this quarter, and managing our operating expenses, with initiatives in place to keep costs in line for the remainder of the year. We believe we are well positioned for continued top line growth as we approach our goal of profitability and long-term shareholder value creation."
Financial Results for First Quarter 2015
Net revenue was $41.3 million, an increase of 26% sequentially quarter-over-quarter. The Company also closed the quarter with a sales backlog of $17.1 million compared to $5.1 million at the end of the year 2014 and $9.1 million at the end of the first quarter 2014. This growth in backlog was largely due to the timing of a key company sales event, the Arnold Classic, which was held later in the quarter, resulting in order fulfillment and revenue recognition in the second quarter of 2015. Net revenues also reflected slower than expected international sales due to currency fluctuations and the strength of the U.S. dollar. The Company has taken significant steps to globalize our supply chain to address this issue.
Cash flow increased $5.9 million, or 282%, to a positive $3.8 million from negative $2.1 million in the year prior. Even with a lower top line performance, the Company increased its end of quarter cash position by nearly $4 million.
Gross margin was 34.8%, up 320 basis points over the 2014 full year gross margin.
Adjusted EBITDA, a non-GAAP measure was ($1.6) million, which eliminates depreciation, amortization, interest, taxes, stock-based compensation, and other expenses.
Reaffirmed 2015 Full-Year Guidance
2015 First Quarter Conference Call Information
When: Tuesday, May 12, 2015
Time: 8:00 a.m. Eastern Time
Phone: 1-877-407-9126 (domestic)
A live webcast will be available online on MusclePharm's website at http://ir.musclepharmcorp.com, where it will be archived for one year.
An audio replay of the conference call will be available through midnight May 19 by dialing 877-660-6853 from the U.S. or Canada, or 201-612-7415 from international locations, passcode 13581597.