WESTERVILLE, OH -- (Marketwired) -- 08/13/15 -- The Guitammer Company (OTCQB: GTMM), a leader in haptic-tactile broadcasting technology and hardware for sports, cinemas and consumers, announced today its results for the second quarter ended June 30, 2015.
2015 Second Quarter Financial Highlights and Selected Recent Developments
- For the 3 months ended June 30, 2015, revenue increased $167,406 or 91%, to $351,256, compared to revenue of $183,850 for the three months ended June 30, 2014.
- For the 6 months ended June 30, 2015, revenue increased $386,702, or 78%, to $881,604, compared to revenue of $494,902 for the six months ended June 30, 2014.
- Gross margin percentage increased to 49% for the three months ended June 30, 2015; up from 46% for the three months ended June 30, 2014.
- For the 6 months ended June 30, 2015, gross margin percentage increased to 47%; up from 46% for the 6 months ended June 30, 2014.
- For the 6 months ended June 30, 2015 sales of ButtKicker® "4D" cinema seats expanded by eight theaters and approximately 1,700 seats consisting of two new Dolby Theater™ at AMC Prime™ locations, two new Regal Entertainment "RPX" locations, and four new Lumiere Pavilions "Lumiere Digital" locations.
Commenting regarding the Quarter's results, Richard Conn, CFO of Guitammer, said, "For both the first and second quarters of 2015 we have been pleased with the improvement in our sales numbers and gross margin percentage. We have seen continued growth in our sales to the cinema market and expect that trend to continue throughout the remainder of 2015."
About The Guitammer Company
The Guitammer Company, based in Westerville, Ohio, is a leader in haptic-tactile broadcasting technology and hardware for sports, cinemas and consumers. ButtKicker-brand low frequency audio transducers let users feel low-frequency sound (bass) and are musically accurate, powerful and virtually indestructible. They are used around the world by leading entertainment and theater companies such as: Regal Entertainment Group, AMC Theatres, Alamo Drafthouse, IMAX, Disney and Lumiere Pavilions. They are used in other theaters and attractions, by world-famous musicians, in home theaters, by consumers for video games, simulators and car audio and are distributed by Pearl Drums for musicians under the trade name, "Pearl's Throne Thumper by ButtKicker."
The Guitammer Company's patented and patent pending broadcast technologies, "ButtKicker Live!® or "4D Sports powered by ButtKicker," enables the excitement, impact and feeling of live sporting events to be broadcast along with the sound and video and puts the viewer into the action, whether at home or at the event. "4D Sports powered by ButtKicker" technology is available for cable, satellite, fiber optic, IPTV and over-the-air broadcasts.
For additional information on The Guitammer Company and detailed product information, visit www.guitammer.com and www.shakemycouch.com. To like our Facebook page or follow us on Twitter for company updates, visit www.facebook.com/TheButtKicker and www.twitter.com/TheButtKicker.
Safe Harbor:
This letter contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended, which are intended to be covered by the safe harbors created thereby. Investors are cautioned that all forward-looking statements involve risks and uncertainty, including without limitation, the ability of the Company to successfully implement its turnaround strategy, changes in costs of raw materials, labor, and employee benefits, as well as general market conditions, competition and pricing. Although the Company believes that the assumptions underlying the forward-looking statements contained herein are reasonable, any of the assumptions could be inaccurate, and therefore, there can be no assurance that the forward-looking statements included in this letter will prove to be accurate. In light of the significant uncertainties inherent in the forward-looking statements included herein, the inclusion of such information should not be regarded as representation by the Company or any other person that the objectives and plans of the Company will be achieved. In assessing forward-looking statements included herein, readers are urged to carefully read those statements. When used in the Annual Report on Form 10-K, the words "estimate," "anticipate," "expect," "believe," and similar expressions are intended to be forward-looking statements.
- financial tables follow -
THE GUITAMMER COMPANY
CONSOLIDATED BALANCE SHEETS
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June 30, December 31,
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2015 2014
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ASSETS
Current assets
Cash and cash equivalents $ 150,586 $ 16,185
Accounts receivable, net 35,108 25,139
Inventory 139,793 361,223
Prepaid expenses and other current
assets 37,666 131
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Total current assets 363,153 402,678
Property and equipment, net 50,062 64,173
Deferred financing costs, net 11,399 25,066
Other assets, net 28,217 29,729
Investment in affiliate 26,066 -
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Total Assets $ 478,897 $ 521,646
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LIABILITIES AND STOCKHOLDERS DEFICIT '
Current liabilities
Line of credit $ 39,523 $ 39,523
Accounts payable 731,715 853,933
Accrued expenses 492,059 366,938
Deferred revenue 29,292 36,899
Current portion of long-term debt -
related parties 949,592 604,529
Current portion of long-term debt -
non-related parties 749,028 795,630
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Total current liabilities 2,991,209 2,697,452
Long-term debt, net of current portion
- related parties - 340,229
Long-term debt, net of current portion
- non-related parties - -
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Total Liabilities 2,991,209 3,037,681
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Commitments - -
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Stockholders' deficit
Common stock, par value of $.001,
150,000,000 shares authorized;
83,100,498 and 80,000,498 shares
issued, and outstanding at June 30,
2015 and December 31, 2014,
respectively 83,101 83,001
Preferred stock, par value of $.001,
1,000,000 shares
authorized; 50,000 and shares issued
and outstanding
at June 30, 2015 and December 31,
2014 respectively 50 -
Additional paid-in capital 8,600,507 7,985,860
Accumulated deficit (11,195,970) (10,584,896)
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Total Stockholders' deficit (2,512,312) (2,516,035)
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Total Liabilities and Stockholders'
deficit $ 478,897 $ 521,646
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THE GUITAMMER COMPANY
CONSOLIDATED STATEMENTS OF OPERATIONS
For the Six Months Ended
June 30,
2015 2014
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Total revenue $ 881,604 $ 494,902
Cost of goods Sold 465,593 265,980
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Gross profit 416,011 228,922
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Operating expenses
General and Administrative 888,563 741,381
Research and Development 1,575 10,782
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890,138 752,163
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Loss from Operations (474,127) (523,241)
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Other Income
Investment income 26,066 -
Net Interest income (expense) (156,766) (106,872)
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(130,700) (106,872)
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Loss before provision for
Income taxes (604,827) (630,113)
Provision for Income taxes - -
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Loss before dividends on preferred
stock (604,827) (630,113)
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Dividends - preferred stock (6,247) -
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Net loss available to common
stockholders $ (611,074) $ (630,113)
Basic and diluted loss per share $ (0.007) $ (0.008)
Basic and diluted weighted average
common shares outstanding 83,059,614 78,122,444
Reconciliation of U.S. GAAP Net loss to EBITDA and Adjusted EBITDA:
EBITDA is defined as earnings (loss) before net interest expense, taxes, depreciation and amortization. Adjusted EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization, stock warrant expense, payment of stock and warrants to consultants and employee stock-based compensation. Although EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with generally accepted accounting principles ("GAAP"), Guitammer believes that these non-GAAP measures will allow for a better evaluation of the operating performance of the business and facilitate meaningful comparison of the results in the current period to those in prior periods and future periods. However, investors should not consider these measures in isolation or as a substitute for net income, operating income, or any other measure for determining Guitammer's operating performance that is calculated in accordance with GAAP. A reconciliation of EBITDA and Adjusted EBITDA to the most comparable GAAP financial measure, net loss, follows:
Reconciliation of U.S. GAAP net loss
To EBITDA and Adjusted EBITDA
June 30, June 30,
2015 2014
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Net Loss available to common
stockholders $ (611,074) $ (630,113)
Adjustments
Interest expense 156,783 106,875
Depreciation and patent amortization 18,063 24,294
Taxes - -
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EBITDA (436,228) (498,944)
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Less non-cash expenses from:
Stock warrant expense 8,177 (57,584)
Payment of stock and warrants to
consultants 8,500 56,250
Employee stock options expense 106,297 71,736
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Adjusted EBITDA $ (313,254) $ (428,542)
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For More Information Contact:
Media
The Guitammer Company
(614) 898-9370
media@guitammer.com
