The Guitammer Company Announces First Quarter 2013 Results

The Guitammer Company Announces First Quarter 2013 Results 
Established Strategic Industry Relationships to Advance Core Business
and Visibility of ButtKicker Live! Broadcast Technology 
WESTERVILLE, OH -- (Marketwired) -- 05/15/13 --  The Guitammer
Company (OTCQB: GTMM), a leader in low frequency sound and creator of
the award-winning line of ButtKicker(R)-brand low frequency audio
transducers that provide an immersive entertainment experience for
audiences, today announced its results for the first quarter ended
March 31, 2013. 
2013 First Quarter Financial Highlights and Selected Recent
Developments 


 
--  Net loss decreased by 6% for the three months ended March 31, 2013
    compared to the three months ended March 31, 2012.
--  Total current assets increased 5.9%, or $51,034, to approximately
    $912,000, as of March 31, 2013 compared to March 31, 2012, attributed
    primarily to the increase in cash which resulted from the sale of the
    Company's stock and warrants in March 2013.
--  Net increase in cash and cash equivalents of $123,001, as of March 31,
    2013 compared to March 31, 2012, primarily consisting of net cash
    provided by financing activities of $230,217 partially offset by net
    cash used in operating activities of $107,216.
--  For the three months ended March 31, 2013, revenue totaled $525,427
    compared to revenue of $729,137 for the same period a year earlier.
--  $250,000 of equity investment received from a new Private Placement
    investor in the first quarter. An additional $515,000 from previous
    Private Placement investors received subsequent to the quarter end.
--  Expanded footprint in China with the installation of eighth ButtKicker
    "4D" theater system for Lumiere Pavilions in Beijing.
--  Entered into a Joint Marketing Agreement with Digital Cinema
    Destinations Corp. All 300+ stadium seats in one of the largest 3D
    auditoriums at their Solon Cinema 16 location will be ButtKicker
    enabled as the initial installation.
--  Joined D-Tools Manufacturer Vantage Point (MVP) Program.
--  Partnered with Warner Brothers for this Summer's Release of "Warner
    Bros. Pictures and Legendary Pictures Pacific Rim" by Oscar(R)
    nominee director Guillermo del Toro.
--  Widened live in-
arena game testing of the ButtKicker Live! broadcast
    technology with major sports league to include two potential broadcast
    partners.
--  Began in-depth discussions with additional potential sports league for
    ButtKicker Live!
--  Joined Nationwide, the largest buying and marketing organization in
    North America, with more than 3,500 members operating more than 10,000
    store fronts.
--  ButtKicker products were a Nationwide "Featured SOLUTION" at their
    Primetime! Buying Show in Las Vegas.
--  Hired industry veteran National Sales Manager to lead domestic home
    theater sales initiatives.

  
Mark Luden, President of Guitammer, stated, "We started off 2013 by
significantly raising the visibility of our ButtKicker(R) technology
by strategically partnering with established market leaders. This not
only raised immediate brand awareness for our products within the
entertainment industry, but also positions us for growth moving
forward. In addition, we welcomed our new National Sales Manager,
Home Theater, to oversee home theater sales of ButtKicker brand
products and generate an increase in domestic sales volumes." 
"Furthermore, we increased our footprint of both international and
domestic movie theaters, a trend we expect to continue," added Luden.
"We expect to launch direct to consumer sales with one or more of our
theater operators by the end of Q3 to help position us for Q4
consumer holiday sales.  
"Importantly, we continued to progress with our live in-game testing
of the ButtKicker Live! broadcast technology and expanded our efforts
to include an additional sports partner to help us begin
commercializing this technology, potentially this year." 
Addressing the decrease in Q1 revenues Luden stated, "The decrease in
revenues is primarily attributed to the following factors: the first
quarter of 2012 had a sizeable stocking order from an OEM customer
and the first quarter of 2013 did not have a stocking order of that
magnitude; the first quarter of 2012 had more backorders that had to
be fulfilled than the first quarter of 2013; and the economic
slowdown in Europe caused certain restocking orders from established
distributors to be delayed. However, our net loss decreased by 6%,
and our EBITDA loss decreased by approximately $13,845 in the first
quarter of 2013, compared to the first quarter of 2012. We do expect
to see domestic sales volumes increase throughout the remainder of
2013."  
2013 Outlook 
"We believe that our operations, exclusive of any research and
development costs, can become operationally cash flow positive on an
ongoing basis for our core products business by the end of the fourth
quarter of 2013 as we continue securing additional capital," stated
Richard Conn, Chief Financial Officer of Guitammer. "With this
additional financing, we anticipate the purchase of adequate
inventory to meet existing sales demand and to be able to increase
sales through increased sales and marketing activities as previously
described." 
About The Guitammer Company 
The Guitammer Company, based in Westerville, Ohio, is a leader in low
frequency sound products and technology. Its innovative and
award-winning line of patented ButtKicker-brand low frequency audio
transducers let users feel low-frequency sound (bass). ButtKicker
brand products are used around the world by leading entertainment and
theater companies such as Alamo Drafthouse, IMAX, Disney and Lumiere
Pavilions in movie theaters and attractions; by world-famous
musicians; and in home theaters, by consumers for video games,
simulators and car audio. ButtKicker brand products are distributed
by Pearl Drums for musicians under the trade name, "Pearl's Throne
Thumper by ButtKicker." ButtKicker brand products' patented design
makes them musically accurate, powerful and virtually indestructible. 
The Guitammer Company's newly patented broadcast technology,
ButtKicker LIVE! enables the excitement, impact and feeling of
sporting events to broadcast along with the sound and video.
ButtKicker LIVE! puts you into the action, whether you're at home or
at the event. ButtKicker Live! technology is available for cable,
satellite, fiber optic, IPTV and over-the-air broadcast and has been
successfully tested with several major content (sports) providers.
ButtKicker(R) and ButtKicker Live!(R) are registered trademarks of
The Guitammer Company.  
For additional information on The Guitammer Company and detailed
product information, visit www.guitammer.com and
www.thebuttkicker.com 
To like our Facebook page or follow us on Twitter for company
updates, visit www.facebook.com/Guitammer or
www.twitter.com/Guitammer  
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 an
d 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                            
                                                                            
              CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS               
                                (UNAUDITED)                                 
                                                                            
                                                For the Three Months Ended  
                                                         March 31,          
                                               ---------------------------- 
                                                    2013           2012     
                                               -------------  ------------- 
                                                                            
Total revenue                                  $     525,427  $     729,137 
                                                                            
Cost of goods sold                                   306,618        422,441 
                                               -------------  ------------- 
    Gross profit                                     218,809        306,696 
                                               -------------  ------------- 
                                                                            
Operating expenses                                                          
  General and administrative                         439,425        491,352 
  Research and development                             1,293         51,348 
                                               -------------  ------------- 
                                                     440,718        542,700 
                                               -------------  ------------- 
                                                                            
    Loss from operations                            (221,909)      (236,004)
                                               -------------  ------------- 
                                                                            
Other income (expense)                                                      
  Interest expense                                   (53,834)       (57,736)
  Interest income                                          6              - 
                                               -------------  ------------- 
                                                     (53,828)       (57,736)
                                               -------------  ------------- 
                                                                            
Loss before provision for income taxes              (275,737)      (293,740)
                                                                            
Provision for income taxes                                 -              - 
                                               -------------  ------------- 
    Net loss                                   $    (275,737) $    (293,740)
                                               -------------  ------------- 
                                                                            
Basic and diluted loss per share               $      (0.004) $      (0.005)
                                                                            
Basic and diluted weighted average common                                   
 shares outstanding                               69,219,763     60,058,179 
                                                                            
    See accompanying Notes to Condensed Consolidated Financial Statements   
                                                                            
                                                                            
                                                                            
                           THE GUITAMMER COMPANY                            
                                                                            
                        CONSOLIDATED BALANCE SHEETS                         
                                                                            
                                               (unaudited)                  
                                                March 31,     December 31,  
                                             --------------  -------------- 
                                                  2013            2012      
                                             --------------  -------------- 
ASSETS                                                                      
Current assets                                                              
  Cash and cash equivalents                  $      202,137  $       79,136 
  Accounts receivable, net                           86,797          21,011 
  Inventory, net                                    621,064         629,251 
  Prepaid expenses and other current assets           2,073         131,639 
                                             --------------  -------------- 
    Total current assets                            912,071         861,037 
                                                                            
Property and equipment, net                          11,097          12,208 
Deferred financing costs, net                        49,975          58,336 
Other assets                                         26,953          28,780 
                                             --------------  -------------- 
    Total Assets                             $    1,000,096  $      960,361 
                                             --------------  -------------- 
                                                                            
LIABILITIES AND STOCKHOLDERS' DEFICIT                                       
Current liabilities                                                         
  Line of credit                             $       39,523  $       39,523 
  Accounts payable                                  755,329         742,451 
  Accrued expenses                                  464,663         459,168 
  Deferred revenue                                   79,764         129,385 
  Current portion of long-term debt -                                       
   related parties                             
     801,097         517,004 
  Current portion of long-term debt - non-                                  
   related parties                                  555,519         554,124 
                                             --------------  -------------- 
    Total current liabilities                     2,695,895       2,441,655 
                                                                            
Long-term debt, net of current portion -                                    
 related parties                                     33,255         317,348 
Long-term debt, net of current portion - non                                
 related parties                                    369,541         391,018 
                                             --------------  -------------- 
Total Liabilites                                  3,098,691       3,150,021 
                                             --------------  -------------- 
                                                                            
                                             --------------  -------------- 
Commitments                                               -               - 
                                             --------------  -------------- 
                                                                            
Stockholders' deficit                                                       
  Common stock, par value of $.001,                                         
   150,000,000 shares authorized; 70,155,704                                
   and 68,779,482 shares issued and                                         
   outstanding at March 31, 2013 and                                        
   December 31, 2012, respectively                   70,157          68,780 
  Additional paid-in capital                      6,006,917       5,641,492 
  Accumulated deficit                            (8,175,669)     (7,899,932)
                                             --------------  -------------- 
Total Stockholders' deficit                      (2,098,595)     (2,189,660)
                                             --------------  -------------- 
    Total Liabilities and Stockholders'                                     
     deficit                                 $    1,000,096  $      960,361 
                                             --------------  -------------- 
                                                                            
   See accompanying Notes to Condensed Consolidated Financial Statements.   

 
The following table sets forth EBITDA for the Company, which is a
non-GAAP measurement. EBITDA is defined as earnings (loss) before net
interest expense, taxes, depreciation and amortization. Although
EBITDA is not a measure of performance calculated in accordance with
generally accepted accounting principles ("GAAP"), management
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 this measure in isolation or as a substitute for
net income, operating income, or any other measure for determining
the Company's operating performance that is calculated in accordance
with GAAP. A reconciliation of EBITDA to the most comparable GAAP
financial measure, net loss, follows: 


 
                                                                            
                                                For the three months ended: 
                                                                            
                                                 March 31,      March 31,   
                                                    2013           2012     
                                               -------------  ------------- 
Net Loss                                       $    (275,737) $    (293,740)
Adjustments                                                                 
  Interest Expense                                    53,834         57,736 
  Depreciation and Amortization                        2,938          3,194 
  Taxes                                                    -              - 
                                               -------------  ------------- 
EBITDA                                              (218,965)      (232,810)
                                               -------------  ------------- 

  
For More Information Contact: 
Media 
The Guitammer Company 
(614) 898-9370 
Media@Guitammer.com  
Investors
QualityStocks
(480) 374-1336
Editor@QualityStocks.net 
 
 
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