Company News: Page (1) of 1 - 03/14/14

The Guitammer Company Announces 2013 Financial Results

Company Achieves Key Milestone of Initial "4D powered by ButtKicker" Broadcast With the NHRA on ESPN2; Significantly Increases Deployment of "4D powered by ButtKicker" Cinema Seats

March 14, 2014 --

WESTERVILLE, OH -- (Marketwired) -- 03/14/14 -- The Guitammer Company (OTCQB: GTMM) (OTCBB: GTMM), a leader in tactile and haptic broadcast technology and creator of the award-winning line of ButtKicker®-brand low frequency audio transducers that provide an immersive entertainment experience for audiences announced today that its revenue increased in the 4th quarter ending December 31, 2013 by approximately $111,312 or 23% to $600,337 compared to revenue of $489,025 for the 4th quarter of 2012. Revenue for the entire year ending December 31, 2013 decreased $215,324 or 10.1% to $1,917,300 as compared to revenue of $2,132,624 for the year ended December 31, 2012.

2013 Full Year Financial Highlights and Recent Developments

  • National launch of the patented "4D Sports powered by ButtKicker" tactile enabled broadcast technology for the National Hot Rod Association (NHRA) on ESPN2 telecasts. Debuting with the September 14th, 2013 telecast and then for all subsequent 2013 telecasts.

  • Significant acceleration in worldwide cinema deployment with over 4,000 "4D Cinema powered by ButtKicker" seats added in 22 auditoriums in the US, China and Hong Kong which almost doubled the Company's US footprint and more than doubled the Company's footprint in China & Hong Kong.

  • Cinema deployment included outfitting every seat, totaling approximately 1,100, in all 5 locations of a new concept theater by a US top 4 theater operator.

  • Total revenues decreased 10 percent year-over-year to approximately $1.92 million, primarily due to a decrease in international sales, noted below.

  • US sales increased over 10% to approximately $1,060,000 in 2013 from approximately $960,000 in 2012.

  • International sales decreased to $860,000 in 2013 from approximately $1,170,000 in 2012, primarily due to weakness in sales to the European market and most notably France.

  • Gross margins increased to 42 percent for all of 2013 as compared to 40 percent for all of 2012.

  • Approximately $1.25 million of new equity was raised from private placements in FY2013.

  • Continued trend from 2012 of improving working capital deficit with an improvement of (i.e. a decrease of) $70,000 or 4.4 percent in 2013 as compared to 2012.

Rich Conn, Guitammer's CFO, stated, "We are pleased with our Q4 2013 results, last year's gross margin, and the fact that we were able to continue to invest in and begin to commercialize our broadcast technology."

Additional Full Year 2013 Recent Developments


"2013 was a pivotal year for Guitammer as we delivered on our promise of broadcasting sports in "4D" on a national basis and significantly increased our "4D" cinema presence, especially in the US market. In 2013 our strategy of building awareness of our scalable and disruptive broadcast technology supported by cinema sales took several important steps forward and we look for that trend to continue in 2014," said Mark A. Luden, Guitammer's President / CEO.

About The Guitammer Company
The Guitammer Company, based in Westerville, Ohio, is a leader in low frequency sound products and broadcast technology. The Guitammer Company's patented broadcast technology "ButtKicker Live!® or "4D Sports powered by ButtKicker" is now live on ESPN2 for the National Hot Rod Association (NHRA) broadcasts. "4D Sports powered by ButtKicker" enables the excitement, impact and feeling of live sporting events to be broadcast along with the sound and video, and puts the viewer into the action, whether at home or at the event. "4D Sports powered by ButtKicker" technology is available for cable, satellite, fiber optic, IPTV and over-the-air broadcasts. For more information see www.guitammer.com/4Dsports. ButtKicker® and ButtKicker Live!® are registered trademarks of The Guitammer Company.

The Company's 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 AMC Theatres, 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.

For additional information on The Guitammer Company and detailed product information, visit www.guitammer.com and www.shakemycouch.com. To like our Facebook page or follow us on Twitter for company updates, visit www.facebook.com/Guitammer and 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 and 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 CONSOLIDATED BALANCE SHEETS December 31, December 31, ------------ ------------ 2013 2012 ------------ ------------ ASSETS Current assets Cash and cash equivalents $ 140,231 $ 79,136 Accounts receivable, net 62,505 21,011 Inventory 443,761 629,251 Prepaid expenses and other current assets 6,141 131,639 ------------ ------------ Total current assets 652,638 861,037 Property and equipment, net 127,186 12,208 Deferred financing costs, net 38,335 58,336 Other assets, net 21,472 28,780 ------------ ------------ Total Assets $ 839,631 $ 960,361 ------------ ------------ LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities Line of credit $ 39,523 $ 39,523 Accounts payable 533,438 742,451 Accrued expenses 376,188 459,168 Deferred revenue 68,823 129,385 Current portion of long-term debt - related parties 584,352 517,004 Current portion of long-term debt - non- related parties 559,987 554,124 ------------ ------------ Total current liabilities 2,162,311 2,441,655 Long-term debt, net of current portion - related parties 250,000 317,348 Long-term debt, net of current portion - non- related parties 302,479 391,018 ------------ ------------ Total Liabilities 2,714,790 3,150,021 ------------ ------------ ------------ ------------ Commitments - - ------------ ------------ Stockholders' deficit Common stock, par value of $.001, 150,000,000 shares authorized; 77,905,248 and 68,779,482 shares issued, and outstanding at December 31, 2013 and December 31, 2012, respectively 77,906 68,780 Additional paidddin capital 7,253,730 5,641,492 Accumulated deficit (9,206,795) (7,899,932) ------------ ------------ Total Stockholders' deficit (1,875,159) (2,189,660) ------------ ------------ Total Liabilities and Stockholders' deficit $ 839,631 $ 960,361 ------------ ------------

THE GUITAMMER COMPANY CONSOLIDATED STATEMENTS OF OPERATIONS Year Ended December 31, ------------------------------ 2013 2012 -------------- -------------- Total revenue $ 1,917,300 $ 2,132,624 Cost of Goods Sold 1,106,269 1,282,168 -------------- -------------- Gross profit 811,031 850,456 -------------- -------------- Operating expenses General and administrative 1,727,180 1,568,067 Research and development 197,006 75,474 -------------- -------------- 1,924,186 1,643,541 -------------- -------------- Loss from operations (1,113,155) (793,085) -------------- -------------- Other income (expense) Interest expense (193,776) (278,928) Interest income 68 45 -------------- -------------- (193,708) (278,883) -------------- -------------- Loss before provision of income taxes (1,306,863) (1,071,968) Provision for income taxes - -------------- -------------- Net loss attributable to common stockholders $ (1,306,863) $ (1,071,968) -------------- -------------- Basic and diluted loss per share $ (0.02) $ (0.02) Basic and diluted weighted average common shares outstanding 73,712,472 64,861,800

Reconciliation of U.S. GAAP Net loss to EBITDA and Adjusted EBITDA:

EBITDA is defined as earnings (loss) before net interest expense, taxes, depreciation and amortization. Adjusted EBITDA is defined as earnings before net interest expense, income taxes, depreciation, amortization, stock warrant expense, payment of stock and warrants to consultants and employee stock-based compensation. Although EBITDA and Adjusted EBITDA are not measures of performance calculated in accordance with generally accepted accounting principles ("GAAP"), Guitammer 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 these measures in isolation or as a substitute for net income, operating income, or any other measure for determining Guitammer's operating performance that is calculated in accordance with GAAP. A reconciliation of EBITDA and Adjusted EBITDA to the most comparable GAAP financial measure, net loss, follows:

Reconciliation of U.S. GAAP net loss To EBITDA and Adjusted EBITDA Year ended December 31, 2013 2012 -------------- -------------- Net Loss $ (1,306,863) $ (1,071,968) Adjustments Interest expense 193,776 278,928 Depreciation and patent amortization 31,623 12,965 Taxes - - -------------- -------------- EBITDA (1,081,464) (780,075) -------------- -------------- Less non-cash expenses from: Stock warrant expense (20,441) 80,141 Payment of stock and warrants to consultants 184,771 183,239 Employee stock options expense 153,455 41,002 -------------- -------------- Adjusted EBITDA $ (763,679) $ (475,693) ============== ==============

For More Information Contact:
Media
The Guitammer Company
(614) 898-9370
media@guitammer.com


Copyright @ Marketwire
Page: 1
Related Keywords:Home, Gaming, Movies & Music, Movies by Genre, Broadcast, Sports Broadcasting, Business, Broadcast Technology, Broadcast, IPTV, France, USA, China, Hong Kong, Marketwire, Sports, Television, Theater, Games, Game Technology, Business, Entertainment, Sports, china, Other,

Source:Marketwire. All Rights Reserved

DMO TEXT LINKS
(Click here to place a textlink on this site)

Get 10 days of free unlimited access to lynda.com.
What do you want to learn today? Online video tutorials to help you learn software, creative, and business skills.
Click Here!

---

@ Copyright, 2014 Digital Media Online, All Rights Reserved

Webmaster
Digital Media Online, Inc.