The Guitammer Company, a leader in low frequency sound and creator of the award-winning line of ButtKicker®-brand low frequency audio transducers that provide an immersive entertainment experience for audiences, just announced its results for the first quarter ended March 31, 2013.
The company featured the following financial highlights and 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 Lumière 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® 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® 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.”
Richard Conn, Chief Financial Officer of Guitammer, provided the following guidance for the rest of this year: “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. “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.”
For more information, visit www.guitammer.com
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