MusclePharm Corp (OTCMKTS:MSLP) a scientifically supported, performance-lifestyle and sports nutrition company reported financial results for 1Q2015. The net revenue surged 26% sequentially QOQ to $41.3 million. The company reported cash flow positive in 1Q with $4.8 million in cash. The cash flow jumped impressive 282% YOY to $5.9 million while the sales backlog jumped $12 million to $17.1 million in 1Q2015. Gross margins expanded to 34.8%, up 320 basis points compared to FY2014 financial results.
The strong performance
Brad Pyatt, the Chairman and CEO of MusclePharm Corp (OTCMKTS:MSLP), said that the fundamentals of business in the first quarter were strong. The company recorded positive momentum in terms of revenue contribution, strong margins and positive cash flows. The disappointment came on the front of YOY revenue that declined due to Arnold Classic sales event. The backlog orders remain strong at $17.1 million, which indicates company is on track for robust revenue growth in next three-quarter of the year.
MusclePharm will continue to gain from expansion of its core products range, release of new products and expansion of distribution network. The company will keep on taking new measures to enter into new retail outlets. The focus remains on cash position, with strong growth in cash flow in 1Q2015, and keeping a check on operating expenses. The company will work on cost controlling initiatives to reduce additional operating expenses in FY2015. The abovementioned plans indicated company is prepared to achieve top line growth in coming period.
MusclePharm Corp (OTCMKTS:MSLP) expanded its distribution network to 45,000 retailers, up from 35,000 retailers at the end of 2014. The company now provides its services in 120 international countries, up from 110 nations at the end of 2014.
On Monday’s trading session, the stock price of MusclePharm gained more than 17% to close the trading session at $6.85 on share volume of 118,924.