announcing the purchase of Optimum Nutrition by Glanbia for $315M. Here's an excerpt:
"Optimum is privately owned and has three operating facilities located in Illinois, South Carolina and Florida employing 387 people. It has a 22 year track record in the manufacture and supply of a range of whey based, premium nutritional supplements to the US and global sports nutrition markets. In 2007, Optimum generated US$185 million (€125 million) revenue and US$32 million (€22 million) operating profit."
It will probably end up taking about 5 years for MSLP (gross) revenue to go from $0 to $185M (outside chance in 2014 if the Arnold line proves huge and they get into more big retailers, otherwise likely in 2015). So MSLP's growth rate when it hits $185 will presumably be far higher than was ON's, given that ON took 22 years to get there.
I don't THINK I'm being overly optimistic on the revenue projections. Q2 was $28.5M, which was up by about $3.5M over Q1. Another $3.5M would get them to $32M in Q3, and Q4 should be huge with the introduction of the Arnold line and Costco. No idea what to even HOPE for on the high end. If they do $40M in Q4 they've probably got a decent shot at $185M in 2014.
Does not matter how much they make if they dont post a profit this company wil go no where. i have been in and out of this stock. im going to get back in just for the gamble in Q3 but i am not betting big on it.
Ryan, I hear what you're saying, but at the same time - and please don't take this the wrong way, I'm not trying to be unkind - don't be an idiot. Sure, MSLP has not been previously profitable. But if you were sunning yourself on the beach in an area that had never been hit by a tidal wave, and you saw a 1000-foot-high wave two miles away but closing fast, would you say "does not matter how high the wave is if it doesn't hit the beach"? Or "I'm not worried, this area has never been hit by a tidal wave"?
Continued large sales increases will inevitably lead to profits - LARGE profits - for MSLP. It's really not rocket science. Minus one-time items, they've had net operating profits the last two quarters. As sales increase and they continue making progress in reducing their cost structure, those net operating profits will get larger and larger. The large one-times may all be gone. Even if they're not, there are a finite number of them, and eventually they WILL all be gone. Earnings are essentially calculated as (A-B). A is rising much more quickly than A.