FOR IMMEDIATE RELEASE
Contact: Joseph Jaffoni, Robert Rinderman
J C I R
212-835-8500 or firstname.lastname@example.org
WESTERVILLE, OH, October 31, 2012
The Guitammer Company (OTC BB: 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 continued significant operating momentum as third quarter 2012 revenue rose 210% to approximately $555,000 and the higher revenue drove a 189%, or a $147,000, year-over-year increase in gross profit, which totaled approximately $225,000 in the three months ended September 30, 2012.
For the first nine months of 2012, Guitammer’s revenue improved over 40% over the comparable period in 2011 to $1.6 million and total gross profit improved 44% to approximately $677,000. Total revenue and gross profit for all of fiscal 2011 was $1.3 million and $547,412, respectively.
2012 Third Quarter and Nine-Month Financial Highlights and Recent Developments
Mark Luden, CEO of Guitammer stated, “As reflected in the significant growth in revenue and gross profit generated in the 2012 third quarter, increased global demand for ButtKicker brand products in conjunction with our improved balance sheet and financial flexibility are providing the Company with a solid platform for sustainable growth. In addition to the growth in revenue and gross profit, our progress is clearly evident across many other financial metrics including reduced Adjusted EBITDA loss, significantly lower interest expense and working capital deficits and higher inventory levels that are helping us address the growing popularity of our products among consumers, retailers, entertainment exhibitors, and musicians around the world.
“Guitammer continues to execute on two growth platforms that offer attractive returns. We are achieving organic growth in our core business where the competitive advantages and unique entertainment experiences enabled by ButtKicker brand products provide opportunities for growth in the home theater, gaming, movie theater and musicians/pro audio markets. Our growth and success in the core business is notable as year-to-date revenue and gross profit both already exceed full year 2011 revenue and gross profit by approximately 25%.
“We are also making steady progress with the development and commercialization of our patented broadcast technology, ButtKicker® LIVE! As a new disruptive technology for the home broadcast market, ButtKicker LIVE! offers a second leg of growth for the Company. An emerging technology that enables the excitement, impact and feeling of sporting events to be broadcast along with the sound and video, the commercialization of ButtKicker Live! would bring to Guitammer a distinctive high-margin recurring revenue based business that is highly scalable across multiple channels as it can deliver economic benefits for the entire sports broadcast ecosystem, including content providers, networks and broadcasters and distributors and operators. We have established a strong competitive position for ButtKicker Live! that includes a ‘blocking’ patent for the broadcast space and our efforts to establish additional ‘fence’ IP around key components of the technology. Further, we are making significant progress in establishing the key relationships that will help spur commercialization and expect to begin the testing phase and to generate revenues in fiscal 2013.”
Mr. Luden concluded, “With year to date revenue already exceeding full year 2011 levels, growing popularity for our core products, an improved balance sheet and liquidity capable of supporting ongoing momentum and the continued development of our proprietary ButtKicker Live! technology that will offer a second platform for growth, Guitammer is well positioned to create enhanced value for our shareholders.”
About The Guitammer Company
The Guitammer Company, Westerville, Ohio, is a leader in low frequency sound products and technology. Its 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, IMAX and Disney in movie theaters and attractions; by world-famous musicians; in home theaters, simulators and for car audio. ButtKicker brand products are distributed by Pearl Drums for musicians under the trade name, ”Pearl’s Throne Thumper by ButtKicker”, and factory installed in home theater seating by Palliser Furniture. “ButtKicker brand products patented design makes them musically accurate, powerful and virtually indestructible.
The Guitammer Company's newly patented broadcast technology, ButtKicker LIVE! enables the excitement, impact and feeling of sporting events to broadcast along with the sound and video. ButtKicker LIVE! puts you into the action, whether you’re at home or at the event. ButtKicker Live! technology is available for cable, satellite, fiber optic, IPTV and over-the-air broadcast and has been successfully tested with several major content (sports) providers. ButtKicker® and ButtKicker Live!® are registered trademarks of The Guitammer Company. For additional information, visit www.thebuttkicker.com and www.shakemycouch.com