WESTERVILLE, OH, United States, via ETELIGIS INC., 03/13/2015 – – The Guitammer Company (OTCQB: GTMM), the leader in haptic-tactile 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 its results for the year ended December 31, 2014.
2014 Financial Highlights and Selected Recent Developments
– The Company, the San Jose Sharks (“Sharks”) NHL hockey team and Comcast SportsNet California (“CSNCA”) executed a “Letter Agreement Regarding Technology Initiative” to integrate Guitammer’s broadcast technology in the SAP Center at San Jose and into the CSNCA’s telecasts of the San Jose Sharks home games at the SAP Cent for the 2014/15 NHL season, and to collectively promote and market the enhanced broadcast to San Jose Sharks’ and CSNCA’s viewers. Starting from the first home game on October 11th to present, the CSNCA’s Sharks telecasts have successfully been broadcast in 4D using Guitammer’s technology.
– Recent favorable reviews of the Company’s “4D” broadcasts of the San Jose Sharks home games include this review which aired in the San Jose area in January of 2015: http://wn.ktvu.com/clip/11022053/san-jose-new-technology-for-sharks-fans-watching-from-home
– Revenue was $1,051,019 for the year ending December 31, 2014, compared to revenue of $1,917,300 for the year ended December 31, 2013 a decreased $866,281 or 45.2%
– The Company’s revenues decreased primarily due to its decision to allocate a relatively greater amount of its financial and human resources from the deliveries of its consumer products to the development of its patented broadcast technology. However, the Company’s backorders at December 31, 2014 were approximately $375,000 compared to virtually no backorders at December 31, 2013.
– Revenue increased to $417,230 for the 3 months ending December 31, 2014, compared to revenue of $138,890 for the three months ending September 30, 2014, an increase of approximately 200%.
– Our gross margin percentage remained at approximately 42% for the years ended December 31, 2014 and December 31, 2013.
– For the year ending December 31, 2014, the Company has raised $409,525 through the exercise of certain outstanding warrants by current stock holders.
Commenting regarding the Quarter’s results, Richard Conn, CFO of Guitammer, said, “Because of our focus on our patented broadcast technology, the Company experienced a shortage of available working capital required to fund certain inventory requirements related to its existing consumer products business for the first three quarters of 2014. Because of our success in raising needed capital, primarily in the third quarter of 2014, we experienced significant improvement in our sales numbers in the 4th quarter of 2014 compared to the 3rd quarter of 2014. Additionally, we are experiencing a significant improvement in our sales numbers in the 1st quarter of 2015 compared with the first quarter of 2014 based upon sales results in January and February. In addition, our sales pipeline for US cinema installations continues to grow with four new theaters totaling over 550 ButtKicker enabled seats expected to be installed and in use by this May.”
Mark A. Luden, President of Guitammer, stated in 2014 we made big strides with the commercialization and deployment of our broadcast technology with the San Jose Sharks / Comcast SportsNet CA agreement and deployment and our continuing efforts to with the Society of Motion Picture and Television Engineers (SMTPE) to create haptic-tactile broadcast standards for live events. Our agreement with the Sharks and Comcast SportsNet CA is a significant step forward for us as we continue to commercialize and standardize our haptic-tactile broadcast technology. Unlike last year’s national proof of concept for the National Hot Rod Association (NHRA) telecasts on ESPN2 where our agreement was only with the NHRA, this agreement is a true partnership with the team and the broadcaster with all three parties invested in the success of the technology.”
In January Fox affiliate KTVU in San Jose aired a segment entitled ”New technology for Sharks fans watching from home” that featured positive reactions from Sharks players, coach, local San Jose fans and the station’s news and sports anchors. The segment may be viewed here:
Additionally, Guitammer’s broadcast technology was recently featured in the Consumer Electronics Association’s “5 Technology Trends to Watch for 2015” (http://www.ce.org/i3/pages/Five-Tech-Trends-to-Watch). The report detailed the movement toward more immersive entertainment and highlighted Guitammer’s key role in this movement.
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:
About The Guitammer Company
The Guitammer Company, based in Westerville, Ohio, is a leader in low frequency audio products and broadcast technology. The Guitammer Company’s patented and patent pending broadcast technologies, “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 being used by Comcast SportsNet CA for all of the San Jose Sharks SAP Center home games. The technology is available for cable, satellite, fiber optic, IPTV and over-the-air broadcasts. For more information see www.guitammer.com/4Dsports.
The Company’s innovative and award-winning line of patented ButtKicker-brand low frequency audio transducers let users feel low-frequency sound (bass) and are musically accurate, powerful and virtually indestructible. They 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 and are distributed by Pearl Drums for musicians under the trade name, “Pearl’s Throne Thumper by ButtKicker”. 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/TheButtKicker and www.twitter.com/TheButtKicker.
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.
The Guitammer Company
SOURCE: The Guitammer Company