SOURCE: iSatori

iSatori

May 21, 2012 05:00 ET

iSatori Technologies, Inc. Reports Improved First Quarter 2012 Results, Revenues Up 45% and Pre-Tax Net Income Up 107% Over Previous Year

GOLDEN, CO--(Marketwire - May 21, 2012) - iSatori Technologies, Inc., a wholly owned subsidiary of Integrated Security Systems, Inc. (OTCBB: IZZI), a leader in the creation and marketing of nutritional supplements, announced financial results for iSatori Technologies, Inc., its wholly owned subsidiary, for iSatori's fiscal first quarter, ending March 31, 2012.

For the first quarter of 2012, iSatori reported net sales of $2.45 million, an increase of $0.71 million, or 45% over net sales of $1.74 million for the first quarter of 2011. iSatori reported pre-tax net income of $0.67 million for the first quarter of 2012, an increase of $0.35 million, or 107% over pre-tax income of $0.32 million for the first quarter of 2011, ending March 31, 2011.

A major contributor to the company's improving net income performance for its 2012 first quarter was its realization of a gain of $0.50 million resulting from its divestiture of a dormant product line of children's vitamins to a third party for cash and other consideration. Without this transaction, the Company's 2012 first quarter pre-tax net income performance would have been $0.17 million.

"In addition to our dormant product line divestiture during the quarter, the launch of three scientifically engineered products added new revenue drivers and pre-tax net income to our financial results," said Stephen Adele, Integrated's president and CEO and the founder of iSatori Technologies. "In addition, the expansion of distribution into new international markets, including Australia, the United Arab Emirates, and other Middle East regions, has opened new markets for the Company's products and enhanced our revenues. We remain optimistic about where we are headed and have more exciting product launches planned for 2012."

About iSatori Technologies, Inc.

iSatori 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 Technologies, Inc. and iSatori Technologies, LLC
Condensed Consolidated Statements of Operations
(Unaudited)
March 31, 2012 and 2011
March 31, 2012 March 31, 2011
Sales
Product sales (Net of returns and discounts) $ 2,445,407 $ 1,685,130
Royalty Income 30,581 26,499
Other Revenues 23,729 25,632
Total Sales 2,499,717 1,737,261
Cost of Sales 951,028 638,026
Gross Profit 1,548,689 1,099,235
Operating Expenses
Selling and Marketing 473,679 264,530
Salaries and labor related expenses 480,536 364,747
Administration 279,796 95,783
Depreciation and amortization 17,828 23,230
Total Operating Expenses 1,251,839 748,290
Income from Operations 296,850 350,945
Other Income (Expense)
Gain on sale of dormant product line 499,525 -
Other income (expense) 641 (2,184 )
Financing expense (50,602 ) (8,434 )
Interest expense (78,810 ) (19,140 )
Total Other Income (Expense) 370,753 (29,758 )
Pre-Tax Income 667,603 321,187
Income tax expense (254,734 ) -
Net Income $ 412,869 $ 321,187
iSatori Technologies, Inc. and iSatori Technologies, LLC
Condensed Consolidated Balance Sheets
(Unaudited)
March 31, 2012 and December 31, 2011
March 31, 2012 December 31, 2011
Current Assets
Cash and cash equivalents $ 873,673 $ 364,608
Accounts receivables
Trade, net of allowance for doubtful accounts 1,101,759 937,841
Income Tax Receivable 7,183 54,841
Note receivable - current portion 42,047 44,722
Inventories 868,275 757,250
Assets held for sale - 168,474
Deferred tax asset, net 35,746 35,746
Prepaid expenses 52,869 119,147
Total current assets $ 2,981,552 $ 2,482,629
Property and Equipment
Vehicles - 67,135
Furniture and fixtures 55,029 50,304
Office equipment 32,130 32,131
Computer equipment 265,533 262,737
Dies and cylinders 49,422 49,422
Less accumulated depreciation (274,404 ) (324,257 )
Total property and equipment 127,710 137,472
Note Receivable - net of current portion 81,714 81,714
Other Assets
Deferred tax asset, net 216,498 216,498
Deposits and other assets 31,249 37,257
Debt Issuance Costs 122,438 157,242
Deferred Offering Costs 335,027 141,826
Total other assets 705,212 552,823
Total assets $ 3,896,188 $ 3,254,638
Liabilities and Stockholder's Equity
Current Liabilities
Trade accounts payable $ 828,939 $ 695,775
Accrued expenses 383,772 446,950
Line of credit, less debt discount 951,780 785,044
Current portion of vendor payables - 1,000
Current portion of notes payable 254,970 489,352
Total current liabilities $ 2,419,461 $ 2,418,121
Long-Term Liabilities
Vendor payables, less current portion - -
Notes payable, less current maturities and debt discounts 410,419 478,729
Other long-term liabilities 109,327 92,606
Total long-term liabilities $ 519,746 $ 571,335
Stockholder's Equity
Preferred Stock, $.01 par value, 5,000,000 Shares authorized, no shares issued - -
Common Stock, $.01 par value, 20,000,000 Shares authorized, 10,493,252 shares issued and outstanding at 03/31/2012 104,933 100,000
Additional Paid-In-Capital 259,416 -
Discount on Capital Stock arising upon Incorporation - (56,017 )
Retained Earnings 592,632 221,199
Total Stockholders' Equity $ 956,981 $ 265,182
$ 3,896,188 $ 3,254,638
iSatori Technologies, Inc. and iSatori Technologies, LLC
Condensed Consolidated Statements of Cash Flows
(Unaudited)
March 31, 2012 and 2011
March 31, 2012 March 31, 2011
Operating Activities
Net income 412,869 321,187
Adjustments to reconcile net income to net cash from (used) for operating activities
Depreciation and amortization 17,828 23,230
Amortization of debt discount 3,325 -
Amortization of debt issuance costs 34,804 -
Stock Compensation Expense 70,365 -
Change in fair value of Derivative Instruments 16,721 -
Gain from the sale of Product Line (499,525 ) -
Change in assets and liabilities
Accounts receivable (163,918 ) (89,731 )
Notes Receivable 2,673 20,000
Inventories (111,026 ) 28,610
Prepaid expenses 66,279 (189,628 )
Deposits and other assets 5,462 6,658
Accounts payable 101,162 (184,208 )
Accrued expenses (56,864 ) 244,432
Income Taxes 254,734 -
Net Cash from (used for) Operating Activities 154,890 180,550
Investing Activities
Purchase of property and equipment (7,520 ) (1,992 )
Proceeds from the sale of Product Line 500,000 -
Net Cash from (used for) Investing Activities 492,480 (1,992 )
Financing Activities
Repayment of notes payable (54,290 ) (2,909 )
Issuance of vendor note - 9,000
Repayment of vendor notes (1,000 ) (41,775 )
Proceeds on line of credit 1,980,481 -
Repayment of line of credit (1,828,858 ) -
Payment of financing costs - 1,759
Deferred offering costs (193,201 ) -
Member distribution - (83,168 )
Distributions to shareholder (41,436 ) -
Net Cash from Financing Activities (138,304 ) (117,093 )
Net Change in Cash and Cash Equivalents 509,065 61,465
Cash and Cash Equivalents, Beginning of Period 364,608 66,492
Cash and Cash Equivalents, End of Period 873,673 127,957

Contact Information

  • Contact:

    iSatori Technologies, Inc.
    Stephen Adele
    1-303-215-9174
    Email Contact