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SOURCE: iSatori

iSatori

August 15, 2012 15:46 ET

iSatori, Inc. Reports Increased First Half 2012 Sales Over 2011; Profitability for Recurring Business Operations Also Improved

GOLDEN, CO--(Marketwire - Aug 15, 2012) - iSatori, Inc. (OTCQB: IFIT) (OTCBB: IFIT), a leader in the development and marketing of scientifically engineered nutritional supplements, announced its second quarter and first half calendar 2012 financial results. A summary report of the Company's operating financial results follows at the conclusion of this announcement. Further information is also included in the Company's 10-Q, filed with the SEC.

The Company saw increased revenues to $4.74 million for the first half of 2012. However, iSatori's pre-tax profit declined for the first half of 2012. This declination was primarily due to the Company's absorption of $512,000 in non-recurring merger costs with IZZI. With the proforma "add-back" of these costs related to the Company's merger into IZZI, its first half 2012 recast income from continuing operations of $785,000 compared favorably to its first half 2011 recast income from continuing operations of $573,000.

Commenting on the Company's recent financial results, Stephen Adele, Founder and CEO of iSatori, noted, "We are excited to report continued growth in our financial performance and are working to integrate the growth-capital procured through the merger with IZZI, which we expect will take about six months to fully deploy. Shareholders could expect our financial results from the deployment of IZZI's capital, which is aligned to support the Company's growth objectives, to become more visible in 2013. And as a result, our longer term revenue goals are $25 to $50 million over the next several years, so long as the company is able to gain mass market entry and continue to expand its internet marketing through the introduction of new product developments."

iSatori, Inc. is a consumer products firm which develops and sells nutritional products in the performance, weight loss, and energy markets through online marketing, Fortune 500 retailers, and thousands of retail stores around the world. More information about the Company is available at www.iSatoritech.com.

Statements made in this news release relating to the Company's future sales, expenses, revenue, product developments, and all other statements except statements of historical fact, are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These statements are based on assumptions and estimates that management believes are reasonable based on currently available information; however, management's assumptions and the Company's future performance are both subject to a wide range of business risks and uncertainties, and there is no assurance that these goals and projections can or will be met. Any number of factors could cause actual results to differ materially from those in the forward-looking statements, including, but not limited to, the timing and extent of changes in demand for the Company's products, the availability and price of ingredients necessary to manufacture such products, and the outcome of any current or future litigation regarding such products or similar products of competitors. All forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update any such statement.

   
   
iSatori, Inc., iSatori Technologies, Inc. and iSatori Technologies, LLC  
Condensed Consolidated Balance Sheets  
   
    June 30,     December 31,  
    2012     2011  
ASSETS   Unaudited     (1)  
Current assets:                
  Cash and cash equivalents   $ 3,479,340     $ 364,608  
  Accounts receivable                
    Trade, net of allowance for doubtful accounts     1,098,643       937,841  
  Income tax receivable     -       54,841  
  Other receivables - current portion     42,047       44,722  
  Inventories     917,882       757,250  
  Assets held for sale     31,433       168,474  
  Deferred tax asset, net     35,746       35,746  
  Prepaid expenses     203,862       119,147  
    Total current assets     5,808,953       2,482,629  
                 
Property and equipment                
  Vehicle     -       67,135  
  Furniture and fixtures     56,680       50,304  
  Office equipment     32,130       32,131  
  Computer equipment     309,175       262,737  
  Dies and cylinders     49,422       49,422  
  Less accumulated depreciation     (291,774 )     (324,257 )
                 
    Total property and equipment     155,633       137,472  
                 
Note Receivable - net of current portion     81,714       81,714  
                 
Other assets:                
  Deferred tax asset, net     216,498       216,498  
  Deposits and other assets     25,242       37,257  
  Debt issuance costs     1,250       157,242  
  Deferred offering costs     -       141,826  
    Total other assets     242,990       552,823  
                 
      Total assets   $ 6,289,290     $ 3,254,638  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
                 
Current liabilities:                
  Trade accounts payable   $ 623,137     $ 695,775  
  Accrued expenses     375,750       446,950  
  Line of credit, less debt discount     859,244       785,044  
  Current portion of vendor payables     -       1,000  
  Current portion of notes payable     -       489,352  
    Total current liabilities     1,858,131       2,418,121  
                 
Long-term liabilities                
  Note payable, less current maturities and debt discounts     -       478,729  
  Other long-term liabilities     140,132       92,606  
    Total long-term liabilities     140,132       571,335  
                 
Stockholders' equity:                
  Convertible preferred stock, $0.01 par value, 750,000 shares authorized; 22,500 shares issued and outstanding ($450,000 of liquidation value)     225       -  
  Common stock, $0.01 par value, 56,250,000 shares authorized; 12,622,756 shares issued and outstanding at June 30, 2012, and Common Stock, $0.01 par value, 20,000,000 Shares authorized, 10,000,000 shares issued and outstanding at 12/31/2011, respectively     126,228       100,000  
  Additional paid-in capital     4,146,752       (56,017 )
  Retained earnings     17,822       221,199  
    Total stockholders' equity     4,291,027       265,182  
                 
      Total liabilities and stockholders' equity   $ 6,289,290     $ 3,254,638  
                 
(1) Derived from the audited December 31, 2011 financial statements  
                 
                 
                         
                         
iSatori, Inc., iSatori Technologies, Inc. and iSatori Technologies, LLC  
Condensed Consolidated Statements of Operations  
(Unaudited)  
                         
    For the Three Months Ended
June 30,		     For the Six Months Ended
June 30,		  
    2012     2011     2012     2011  
Revenues:                                
  Product revenue (Net of returns and discounts)   $ 2,195,416     $ 2,469,594     $ 4,640,823     $ 4,154,724  
  Royalty revenue     30,086       33,575       60,666       60,074  
  Other revenue     17,985       78,491       41,713       104,123  
    Total revenue     2,243,487       2,581,660       4,743,202       4,318,921  
                                 
Cost of sales     881,571       821,990       1,832,599       1,460,016  
    Gross profit     1,361,916       1,759,670       2,910,603       2,858,905  
                                 
Operating Expenses:                                
  Selling and marketing     436,007       874,802       909,686       1,139,332  
  Salaries and labor related expenses     547,137       450,516       1,027,674       815,263  
  Administration     365,725       100,961       645,520       196,743  
  Depreciation and amortization     17,916       38,616       35,745       61,846  
    Total operating expenses     1,366,785       1,464,895       2,618,625       2,213,184  
                                 
Income (loss) from operations     (4,869 )     294,775       291,978       645,721  
                                 
Gain on sale of product lines     -       -       499,525       -  
Other income (expense)     15,387       -       16,028       433  
Financing Expense     (237,523 )     (26,413 )     (288,126 )     (34,847 )
Interest expense     (167,267 )     (19,427 )     (246,077 )     (38,535 )
                                 
Income (loss) from continuing operations     (394,272 )     248,935       273,328       572,772  
                                 
Income tax benefit (expense)     142,434       274,131       (112,300 )     271,481  
                                 
Net income (loss)   $ (251,838 )   $ 523,066     $ 161,028     $ 844,253  
                                 
Net income (loss) per common share   $ (0.02 )   $ 0.04     $ 0.01     $ 0.07  
                                 
Weighted average shares outstanding:                                
  Basic     12,622,756       12,622,756       12,622,756       12,622,756  
                                 
                                 

Contact Information

  • Contact:
    iSatori, Inc.
    Stephen Adele
    CEO
    303-215-9174
    Email Contact

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