DENVER, May 24, 2011 /PRNewswire/ -- MusclePharm
Corporation, a Nevada corporation
("MusclePharm" or the "Company") (OTCBB: MSLP), an expanding U.S.
nutritional supplement company, is pleased to announce that it has
released a letter from its CEO, Bradley J.
Pyatt, to update shareholders on the current status of the
company.
Dear Valued MusclePharm Shareholder,
The MusclePharm Executive Team would like to offer its most
sincere thank you for your continued and amazing support over the
past year. We have continued on an impressive pace in building a
very powerful brand and company since MusclePharm was created in
2008.
We believe that the foundation we've formed at MusclePharm –
high-level employees, top-notch institutions, and the numerous and
extensive studies we have engaged in – will ensure the long-lasting
growth of MusclePharm. We have followed compliance on everything
from our manufacturing certification to our studies at Oklahoma University, and both of these items are
what the top vendors love to see.
Our worldwide distribution has grown significantly in the last
12 months. The growth has been so impressive that we have received
numerous accounts in person from those in the industry that say
that we are the fastest-growing company in the sports nutrition
market.
We also believe our partnership with the Ultimate Fighting
Championship (UFC) is growing our brand internationally at a rapid
pace. We saw this first-hand with international distributors at the
recent FIBO conference in Germany.
There, nearly everyone knew and recognized the MusclePharm
brand.
Additionally, Medicaid reimbursement is in its final stages in
New York. Our entire medical board
continues to work diligently and vigorously to finish what could be
a landmark moment for our company.
We also have shown that the fundamentals of our company continue
to get better as we move forward and manage our extreme growth.
MusclePharm has gone from $80,000 in
sales in 2008 to $4 million in 2010
and, now, already more than $6
million through just the first Five months of 2011. We are
excited about that growth and we are confident the best is yet to
come.
In closing, we at MusclePharm appreciate your remarkable support
and we will not rest until we are the dominant name in this
industry. We will continue to sell more and spend less, expanding
at a significant rate thanks to quality and proven industry
professionals.
Sincerely,
Brad Pyatt
Chairman, Chief Executive Officer
***********************
Financial Highlights for the Three Months Ended March 31, 2011
Musclepharm Corporation reported sales and earnings for the
quarter ended March 31, 2011. Total
revenues were $3.52 million for the quarter ended March 31, 2011, which compares to sales of
$1.26 million for the quarter ended
March 31, 2010, a 179%
increase.
Key highlights are as follows:
- Sales were $3.52 million for the
three months ended March 31, 2011, as
compared to $1.26 million for the
comparable three months ended March
31, 2010. The 179% increase in sales was
primarily attributable to increased brand
awareness. Since inception, the Company has focused on
an aggressive marketing plan in hopes of penetrating the
market. As a direct result of the aggressive marketing
plan, our products are currently being offered in more retail
stores, both domestic and international, and our products are
receiving better shelf placement.
- The Company increased its gross profit percentage from 30% for
the three months ended March 31, 2010
to 34% for the three months ended March 31,
2010. The increase in gross profit percentage is
primarily attributable to the Company's significant increase in
sales. The Company expects to continue to receive bulk order
discounts in the future which could result in even stronger gross
profit percentages.
- General and administrative expenses for the three months ended
March 31, 2011, were $2.3 million, as compared to $2.6 million for the comparable three months
ended March 31, 2010. The
$0.3 million decrease is attributable
to a substantial decrease in stock based compensation of
$0.4 million. The major
decrease in stock based compensation was offset by a slight
increase in employee compensation. The Company's
employee headcount increased from 12 employees during the three
months ended March 31, 2010, to 15
employees during the three months ended March 31, 2011.
- The Company recognized a Loss from operations for the three
months ended March 31, 2011 of
$1.1 million as compared to
$2.3 million for the comparable three
months ended March 31,
2010. The decrease in operating loss is primarily
attributable to the aggressive marketing plan and the Company's
ability to gain brand recognition resulting in increased sales
during the three months ended March 31,
2011 as compared to the three months ended March 31, 2010. The Company's $1.1 million loss for the three months ended
March 31, 2011 includes non-cash
stock based compensation of $0.6
million.
- Other expenses for the three months ended March 31, 2011, were $3.9
million as compared to $0.4
million for the comparable three months ended March 31, 2010. The increase in other
expenses of $3.5 million is primarily
attributable features associated with the financing transactions
the Company entered into during the three months ended March 31, 2011. The Company issued
approximately $1.5 million in
convertible notes during the three months ended March 31, 2011. These notes bore
interest at rates ranging from 8% to 12% per
annum. Interest expense during the three months ended
March 31, 2010, increased
approximately $0.2 million as
compared to the comparable three months ended March 31, 2010. In addition, the
convertible notes contained embedded derivatives, due to the
Company not being able to determine the number of shares needed to
settle the conversion rights. As a result, on the
commitment date of each financing, the Company recorded an
aggregate derivative expenses of $1.4
million and on the date of remeasurement, which is
March 31, 2011, a change in fair
market value of $0.1
million. There were no derivative liabilities
recorded for the three months ended March
31, 2010.
***********************
Summary of Distribution, Research & Development, and
Marketing Activities
(Three Months Ended March 31,
2011)
- MuscleGel launches at 1,500 GNC locations Products Rolling
Out in Vitamin World Locations in 2011
MuscleGel is the supplement world's untapped opportunity: high
quality protein in a convenient gel-based formula. The gel is
simple to consume on the go. No hassling with liquids and
mixes.
- MusclePharm Products Rolling Out in Vitamin World Locations
in 2011
Vitamin World is a top retail supplement provider. For
MusclePharm, this creates opportunity for continued growth.
- MusclePharm Inks Deal With Canadian Distributor American
Nutrition Inc.
Signing with ANI, a top-tier distributor, means we can fully
meet Canada's strong
MusclePharm demand. Canada's
MMA fan base is substantial.
- MusclePharm Sportswear Officially launches
Our sportswear line, Powered by TapouT, is now rolling out to
retail through distribution agreement with TapouT.
- Lids-Hat World Inc. to Launch MusclePharm sportswear in
2011
Starting summer 2011, MusclePharm further leverages TapOuT
partnership with distribution in 850 Lids-Hat World retail
stores.
- Former Bristol-Myers Squibb Executive Joins MusclePharm as
Director of Therapeutic Nutrition
Dr. Stevens joins MusclePharm with over twenty years of well
diversified experience in the healthcare and pharmaceutical
industry. Dr. Stevens spent 17 years at Bristol-Myers Squibb, where
he held positions of increasing responsibility in the areas of
Market Research (Oncology and HIV), Marketing (Oncology), and
Medical Affairs (HIV).
- Former Global HIV Pharmaceutical Head, James Sapirstein, Joins MusclePharm as Strategic
Advisor
Mr. Sapirstein, formerly President and Chief Executive Officer
of Tobira Therapeutics, Inc., a New
Jersey-based biopharmaceutical company that develops novel
compounds for HIV/AIDS ("Tobira"). His expertise- 27 years in
pharmaceutical, 22 specializing in infectious diseases - will be an
asset to MusclePharm's advisory board.
- MP Appoints Patricia Ware, Former Director of the U.S.
Presidential Advisory Council on HIV/AIDS, to Its Scientific
Advisory Board
Ware is a leader in HIV/AIDS research, serving as Executive
Director of the U.S. Presidential Advisory Council on HIV/AIDS. Her
education and prevention roles included: the Director of the Office
of Adolescent Pregnancy Programs at the U.S. Department of Health
and Human Services in the H.W. Bush Administration; a member of the
HIV/AIDS and Women Collaborative Working Group under President
Clinton.
- MusclePharm Becomes an Official Nutritional Supplement
Supplier
for the Cincinnati Reds
MusclePharm is the only sports nutrition company that has a
product deal with a MLB team. This is do to the fact of
MusclePharm products having the banned substance
certifications with NSF.
- MusclePharm Named Official Supplement Provider of New Pro
Golf Tour, the Xempt Players Series
MusclePharm's XPS sponsorship also introduces its innovative
MuscleGel™ to the golf market.
- MusclePharm Signs Multi-Year Sponsorship Deal With World
Bodybuilding & Fitness Federation
The significant partnership with the World Bodybuilding and
Fitness Federation (WBFF) locks up title sponsorship through
2014.
- MusclePharm Signs Leading Fitness Female Natalia
Muntean
Muntean, the 2009 Ms. Bikini Universe and WBFF Fitness Model
World Champion, is a recognizable face in the fitness industry.
She's graced the covers of magazines like Oxygen, Physique and
Fitness.
- University of Oklahoma to Begin
Clinical Research Program on MusclePharm's Assault TM Pre-Workout
Performance-Enhancing Product
With positive reviews from thousands of satisfied customers, now
backed up by the OU team's work, MusclePharm once again leads the
industry.
- MusclePharm Moves Into Top 10 Best-Selling Brands on
Bodybuilding.com
Due to impressive growth, MusclePharm cracked the Top 10 at
bodybuilding.com, which carries brands from over 500 companies.
ABOUT MUSCLEPHARM CORPORATION
Headquartered in Denver,
Colorado, MusclePharm is a healthy life-style company that
develops and manufactures a full line of National Science
Foundation approved nutritional supplements that are 100% free of
banned substances. Based on years of research, MusclePharm products
are created through an advanced six-stage research protocol
involving the expertise of top nutritional scientists and field
tested by more than one hundred elite professional athletes from
various professional sports leagues including the National Football
League, Mixed Martial Arts, and Major League Baseball. The
Company's products address all categories of an active lifestyle,
including muscle building, weight loss, and maintaining general
fitness through a daily nutritional supplement regimen.
MusclePharm is sold in over 120 countries and available in
over 5,000 U.S. retail outlets, including GNC and Vitamin Shoppe.
MusclePharm products are also sold in over 100 online stores,
including bodybuilding.com, Amazon.com and Vitacost.com. For more
information, please visit www.musclepharm.com.
FORWARD LOOKING STATEMENTS
The information contained herein includes forward-looking
statements. These statements relate to future events or to our
future financial performance, and involve known and unknown risks,
uncertainties and other factors that may cause our actual results,
levels of activity, performance, or achievements to be materially
different from any future results, levels of activity, performance
or achievements expressed or implied by these forward-looking
statements. You should not place undue reliance on forward-looking
statements since they involve known and unknown risks,
uncertainties and other factors which are, in some cases, beyond
our control and which could, and likely will, materially affect
actual results, levels of activity, performance or achievements.
Any forward-looking statement reflects our current views with
respect to future events and is subject to these and other risks,
uncertainties and assumptions relating to our operations, results
of operations, growth strategy and liquidity. We assume no
obligation to publicly update or revise these forward-looking
statements for any reason, or to update the reasons actual results
could differ materially from those anticipated in these
forward-looking statements, even if new information becomes
available in the future.
Investor Contact:
Cory Gregory
President
303-396-6100
http://www.musclepharm.com
SOURCE MusclePharm Corporation