WESTERVILLE, OH -- (Marketwire) -- 05/15/12 -- The Guitammer Company (OTCBB: GTMM), 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, today announced record revenue for the first quarter ended March 31, 2012. First quarter 2012 revenue rose 4% to approximately $729,000 and the higher revenue combined with a 110 basis point improvement in gross margin to 42.1% drove a 7% year-over-year increase in gross profit, which totaled approximately $307,000 in the three months ended March 31, 2012.
The Company's recent financings have strengthened the balance sheet including reductions in overall debt levels. Guitammer's lower outstanding debt is expected to drive ongoing declines in interest expense and Guitammer now has working capital capacity to meet growing product demand that is expected to lead to significant revenue growth in 2012, over fiscal 2011 total revenue of $1.3 million. The Company expects second quarter revenues to be in line with the year-ago period and that year-over-year revenue growth will be achieved in the second half of fiscal 2012 compared to the comparable prior year period.
2012 First Quarter Financial Highlights and Recent Developments
•Revenues rose 4% year-over-year to approximately $729,000 and gross profit increased 7% to approximately $307,000 reflecting a 110 basis point gross margin improvement to 42%. Approximately 45% of first quarter sales were derived from international markets. •Adjusted EBITDA loss (see reconciliation below) decreased 66%, or approximately $45,000, to $23,000. •Extinguished $404,000 in debt (inclusive of accrued interest) and reflecting this reduction and prior debt extinguishment, interest expense declined 38% or approximately $35,000 for the quarter. •Raised $375,000 in private placements and reflecting additional proceeds secured subsequent to the end of the 2012 first quarter, year to date Guitammer has raised $930,000 in growth capital. •ButtKicker® brand products shipping to distributors, dealers and customers in countries worldwide, including: the US, Canada, Spain, Belgium, France, S. Korea, Brazil, The Netherlands, Germany, the United Kingdom, Singapore, Japan, Denmark, Switzerland, Portugal, Kuwait and China. •Palliser, a leading Canadian furniture manufacturer, is now shipping its home theater seats factory-equipped with the ButtKicker Individual Seat Control System and optional wireless system to furniture stores in the US and Canada. •Secured two new theater installations with Sichuan Lumiere Cinema Co. Ltd. (Lumière Pavilions) of Beijing, China. The new installations are in Shenyang, North China (approximately 144 seats at a new theater), and in Beijing (all 100 seats and a special VIP seating area in one of five auditoriums at Lumière Pavilions' five screen multiplex). •Back orders as of March 31, 2012 totaled approximately $200,000.
In addition, Guitammer recently retained the New York City-based communications and investor relations firm, J C I R, to manage the Company's investor relations efforts and assist with strategic relationships. Interested parties can reach J C I R at 212/835-8500 or via email at firstname.lastname@example.org.
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