Tue, Sep. 8, 5:44 PM
- Sports nutrition products maker MusclePharm (OTCQB:MSLP) settles the SEC investigation into its disclosure and internal control deficiencies dating from 2010 -2013. The disclosures primarily related to executive perquisites and related-party transactions. Current and former executives have voluntarily repaid certain amounts where there was inadequate documentation supporting the business purpose. The company has since revised its internal reporting processes and expanded its disclosures.
- The company agrees to pay a civil penalty of $700K and agrees to retain an independent consultant, mutually acceptable to MusclePharm and the SEC, for 12 months to review compliance and disclosure matters.
- CEO Brad Pyott, former audit committee chair Donald Prosser and former financial officers L. Gary Davis and Lawrence Meer have agreed to pay separate civil penalties.
- Previously: MusclePharm reaches agreement with SEC to resolve investigation (April 13)
Tue, Aug. 25, 6:12 PM
- MusclePharm (OTCQB:MSLP) has launched a restructuring involving "the closure of certain facilities, employee reductions and the termination of contracts," and which "could result in a one-time charge of up to $20 million to $30 million."
- The company thinks cost savings of more than $20M/year are possible. It's aiming for 2016 profitability.
- Though the restructuring isn't expected to affect revenue, the company has nonetheless cut its full-year revenue guidance to $190M-$200M. The sole analyst estimate is at $214.8M.
- COO James Greenwell has left the company. No replacement has been named.
Mon, Aug. 10, 4:48 PM| Mon, Aug. 10, 4:48 PM | 27 Comments
Thu, Jun. 25, 12:00 PM
- Sports nutrition products maker MusclePharm (OTCPK:MSLP +15%) names Ryan Drexler as its new Chairman. Mr. Drexler is CEO of Consac, LLC, a privately-held investment firm that is a current MSLP shareholder.
- The company previously announced that it intended to separate the jobs of Chairman and Chief Executive Officer. Brad Pyatt will continue his role as CEO.
Mon, Apr. 13, 7:33 AM
- Sports nutrition firm MusclePharm (OTCQB:MSLP) announces that it has reached an agreement in principle with the Denver office of the SEC to resolve its investigation into possible violations of federal securities laws. The SEC Commissions must still approve the agreement. It is also considering approving charges against certain former officers. If so, the company may have future financial obligations to indemnify these individuals for expenses connected with the investigation and to advance funds to them for related expenses.
- The SEC's inquiry, first reported on September 30, 2013, includes certain aspects/disclosures of executive compensation and perquisites. The company filed amendments to its 10-Ks for the years 2011, 2012 and 2013 to address the disclosures.
Tue, Mar. 17, 10:48 AM
- Sports nutrition firm MusclePharm (OTCQB:MSLP -53.1%) craters on an 11x surge volume in response to yesterday's Q4 report that showed a decrease in sales, skyrocketing expenses and only $1M in the bank.
- Previously: MusclePharm Q4 revenues off 13%, net loss widens four-fold; only $1M cash on hand (March 16)
Mon, Mar. 16, 6:01 PM
- MusclePharm (OTCQB:MSLP) Q4 results ($M): Net Revenues: 32.7 (-12.8%); Gross Profit: 25.1 (-9.7%); Operating Expenses: 23.9 (+52.2%); Operating Loss: (16.4) (-173.3%); Net Loss: (16.2) (-305.0%); Loss Per Share: (1.39) (-208.9%); Quick Assets: 1.0 (-81.5%); A/R: 16.6 (+21.2%); Inventory: 21.1 (+33.5%).
- 2015 Guidance: Net Sales: $210M - 220M; Gross Margin: 31 - 33%.
- This was an ugly quarter for the supposed high flier. Revenue growth was negative, inventory backed up and expenses skyrocketed. With only $1M in the bank, the company won't be able to make payroll for long.
- Profitability remains elusive. Best case for gross margin of 33% for this year won't be enough to make money. Gross margin for 2014 was 31.6% versus 29.9% the year before, a modest increase considering the aggressive top line growth.
Tue, Mar. 10, 10:53 AM
- The attorneys general from Connecticut, Indiana and Puerto Rico form a coalition to investigate the business practices of the herbal supplement industry to ensure that the manufacturers and retailers comply with the law. The initiative seeks to improve transparency and make certain that the industry is making an effort to validate their marketing claims, including authenticity and purity.
- A recent analysis by the New York AG's Office found undocumented substances in certain store brand herbal supplements, including contaminants and unlabeled plant species. In addition, many of the supplements had been processed to such a degree that the plant source's genetic material was undetectable.
- The FDA requires drug makers to verify the safety and integrity of their products, but dietary supplements are currently exempt from the process despite that fact that more than half of FDA Class I drug recalls (the most serious) between 2004 and 2012 were for dietary supplements.
- According to the Canadian Institutes of Health Research, there are ~65,000 dietary supplements consumed by more than 150M Americans representing a $61B industry.
- Related tickers: (GNC -5.8%)(VSI -1.8%)(HLF -1.2%)(OTCQB:MSLP -1.4%)
Fri, Mar. 6, 8:11 AM
Wed, Mar. 4, 8:54 AM
- Sports nutrition products maker MusclePharm (OTCQB:MSLP) enters into a manufacturing agreement with fellow nutritional products developer and manufacturer Capstone Nutrition whereby MusclePharm will consolidate all of its U.S.-based powder, capsule and tablet manufacturing into Capstone facilities.
- Under the terms of the agreement, MusclePharm will receive warrants equal to 19.9% of Capstone and the right to purchase the remaining 80.1% for a period of 18 months. In addition, it will contribute $2.5M to build out Capstone's manufacturing facilities to accommodate MusclePharm's requirements.
- If the companies merge, the consolidated business will generate revenues of $450M and double-digit EBITDA this year.
- MusclePharm also plans to launch a contract manufacturing sales and business development team to complement Capstone's group.
Nov. 17, 2014, 10:52 AM
- Sports nutrition firm MusclePharm (OTCQB:MSLP -16.1%) slumps on light turnover of 132K shares in response to its Q3 earnings report after Friday's close. EPS of $0.05 missed estimates by $0.29. Also, its cash balance is only $2.9M.
- Management affirms its full-year revenue guidance of $185M - 195M, but revises its EPS guidance to $0.20 - 0.22.
Oct. 21, 2014, 7:54 AM
Aug. 4, 2014, 5:43 PM
- MusclePharm Corp. (OTCQB:MSLP -0.9%) Q2 results: Net Sales: $46.7M (+831%); Gross Profit: $15.6M (+97.5%); Operating Expenses: $15.2M (+42.1%); Operating Income: $479.5K (+118.5%); Net Income: $408.3K (+166.7%); EPS: $0.03 (+108.8%).
- Conspicuous by their absence are the company's balance of cash/cash equivalents and CF Ops. The current assets listed on the balance sheet are most certainly dominated by accounts receivable.
- 2014 Guidance: Net sales: $185M - 195M; EPS: $0.45 - 0.50.
Jun. 24, 2014, 9:00 AM
- MusclePharm (MSLP) expands its footprint with major distributor (GNC). The retailer will now feature all of MSLP's brands on a dedicated wall in all of its U.S. corporate stores. The agreement nearly doubles the number of outlets carrying the products to more than 4,000. The initiative will ramp up in Q3.
Jun. 18, 2014, 10:35 AM
- MusclePharm (MSLP +7.4%) signs a multi-year endorsement deal with golfer Tiger Woods for the term July 1, 2014 - June 30, 2018. The deal includes the company name and logo on his golf bag, the right to use his name and likeness in advertisements and commercials and personal appearances.
- Under the terms of the agreement, the company will pay Woods an annual cash retainer, $5M of MSLP stock and royalties on sales of all branded product.
- The company's lineup of celebrity athlete endorsers also includes Arnold Schwarzenegger and football players Eric Decker and Colin Kaepernick.
May 14, 2014, 11:21 AM
- On May 12, COO Richard Estalella resigned effective immediately. He will continue to serve as MusclePharm's (MSLP -0.8%) President. Jim Greenwell resigned from the Board of Directors effective immediately to assume the COO role on May 16.
- The company will pay Mr. Greenwell a base salary of $275K, a bonus of up to $300K and 100K shares of stock.
- The BOD extends the employment agreements of Brad Pyatt and Cory Gregory to December 31, 2018. As a sweetener, Mr. Pyatt receives 500K shares of stock and Mr. Gregory 100K shares. Both vest 20%/year.
MSLP vs. ETF Alternatives
Headquartered in Denver, Colorado, MusclePharm is a rapidly expanding healthy life-style company that develops and manufactures a full line of NSF and scientifically approved nutritional supplements that are 100% free of any banned substances. Based on years of research, MusclePharm products are... More
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