Back to Newsroom
Back to Newsroom

XFit Brands, Inc. Releases 3rd Quarter Earnings, Highest Recorded Quarter in History

Tuesday, 17 May 2016 12:07 PM

XFit Brands, Inc.

Topic:
Earnings

- Achieves 22.5% Increase in Revenue for Past Nine Months Driven By New Customers Taking Advantage of the One-Stop-Shop Strategy

- Recurring Sales and Improved Supply Chain Partnerships Increased Gross Profit To 44%, a 20 Basis Point Increase Vs. the Prior Nine Month Period

LAKE FOREST, CA / ACCESSWIRE / May 17, 2016 / XFit Brands, Inc. (OTCQB: XFTB), a global supplier of fitness and MMA equipment sold at retail and fitness outlets worldwide whose brands include XFit Brands®, Throwdown®, and Transformations™, today announced earnings for its third fiscal quarter, with Net Revenue increasing 22.5% for the prior nine months and Gross Profit increasing to 44%.

XFIT achieved its highest recorded quarterly revenue in history of $681,431, and highest recorded nine-month revenues in history of $1,829,362, a 22.5% increase versus the nine months ended March 31, 2015.

Gross Profit reached $807,891, a 58.3% increase versus the nine-month period ended March 31, 2015. Gross Profit on product sales increased to 44% as compared to 24% in the prior year period. This significant improvement in Gross Profit materialized from both a strategic shift in mix to higher margin recurring functional fitness items, improving operating efficiencies, and an improvement in manufacturing cost of goods sold and supply chain efficiencies.

Total revenues for the quarter increased to $681,431 from $589,326 for three months ended March 31, 2015, an increase of 15.6% over the prior quarter period. Gross Profit during the quarter was $305,291 as compared to a Gross Profit of $212,498 for the three months ended March 31st, 2015. This represented an increase of $92,793, or 43.7% increase above prior year. Gross Profit during the quarter was 45% as compared to a 28.5% Gross Profit in the prior year.

The Company was once again profitable at the Operating Income line for the quarter on a non-GAAP basis when taking into account the one-time expenses associated with the IPO and other non-cash expenses. One-time expenses and non-cash items included stock based compensation, financing costs, and SEC and IPO costs incurred during the quarter that totaled $241,935.

David Vautrin, Chief Executive of XFit Brands commented, "I am very pleased with another solid quarter of double digit growth, our highest recorded quarterly and nine month performance in our history. Our strategy of partnering with major customers is working. Our increased scale and improvements in supply chain are supporting good margin growth and we expect to see continued good progress in this area. We are on track for another record year at XFIT Brands."

About XFit Brands®

XFit Brands, Inc., Tuesday, May 17, 2016, Press release picture

XFit Brands, Inc. is one of the leading suppliers of functional fitness brands, products, and equipment sold at retail and fitness outlets worldwide. The company provides a full portfolio of products and services spanning MMA, CrossFit, and other High and low impact fitness regimes and owns the trademarks XFIT® for its Functional Fitness line, Throwdown® for its MMA portfolio, and Transformations® in programming. The company's portfolio of brands and products are sold in more than 20 countries around the world and supply many of the leading Gym and Fitness outlets throughout the United States. The Company's websites are www.xfitbrands.com and www.throwdown.com. Follow us on Facebook, Throwdown Industries and XFit Brands.

XFit Brands, Inc., Tuesday, May 17, 2016, Press release picture

Safe Harbor Disclosure

This press release contains forward-looking statements that are made pursuant to the safe harbor provisions 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. Forward-looking statements are any statement reflecting management's current expectations regarding future results of operations, economic performance, financial condition and achievements of XFit, including statements regarding XFit's expectation to see continued growth. The forward-looking statements are based on the assumption that operating performance and results will continue in line with historical results. Management believes these assumptions to be reasonable but there is no assurance that they will prove to be accurate. Forward-looking statements, specifically those concerning future performance are subject to certain risks and uncertainties, and actual results may differ materially. XFit competes in a rapidly growing and transforming industry, and other factors disclosed in the Company's filings with the Securities and Exchange Commission may affect the Company's operations. Unless required by applicable law, XFit undertakes no obligation to update or revise any forward-looking statements.

For investor inquiries please contact:

Emma Mejia
[email protected]
(949) 916-9680

Website: www.XFitBrands.com
www.Throwdown.com

SOURCE: XFit Brands, Inc.

Topic:
Earnings
Back to newsroom
Back to Newsroom
Share by: