Guitammer Second Quarter Revenue Increases 25% To $428,183

WESTERVILLE, Ohio, Aug. 14, 2013 /PRNewswire/ -- The Guitammer Company (OTC QB: 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 second quarter 2013 revenue rose to $428,183, which is an increase of 25% compared to second quarter of 2012.  The higher revenue combined with an 800 basis point improvement in gross margin to 42.9% drove a 27% year-over-year increase in gross profit for the three months ended June 30, 2013. 

2013 Second Quarter Financial Highlights and Recent Developments

• Revenues rose 25% year-over-year to approximately $428,000 and gross profit increased 27% to approximately $184,000, reflecting an 800 basis point gross margin improvement to 42.9%.
• Reflecting previously extinguished debt, interest expense declined 40.5% or approximately $31,500 for the quarter.  Net loss increased $28,679 for the three months ended June 30, 2013 as compared to the three months ended June 30, 2012 due to an increase in non-cash employee stock option plan of approximately $29,000.
• Received a total of $685,625 in equity investments in the second quarter 2013 and an additional $50,000 secured by July 12, 2013.  Year-to-date, Guitammer has raised $985,925 in equity.
• Total current assets were $1,196,365 at June 30, 2013, an increase of $335,328 or 39% compared to current assets of $861,037 as of December 31, 2012.
• Working capital increased $426,623 for the three months ended June 30, 2013 as compared to the three months ended March 31, 2013.
• Secured the ninth and tenth theater installations with Sichuan Lumiere Cinema Co. Ltd. (Lumiere Pavilions) of Beijing, China and increased its ButtKicker® deployment in an existing installation bringing the total number of ButtKicker enabled "4D" seats to almost 1,900 in ten locations throughout China.
• Entered into a Joint Marketing Agreement with Digital Cinema Destinations Corp. to add ButtKicker seats to the majority of their Solon, OH location and test a joint marketing plan. Installation has begun and is expected to be finished by early September.
• Partnered with Warner Brothers for this Summer's Release of "Warner Bros. Pictures and Legendary Pictures Pacific Rim" by Oscar® nominee director Guillermo del Toro.
• Established a worldwide joint marketing relationship with Obutto, a leading manufacturer of gaming cockpits, offering ButtKicker brand products to gamers, simulation racers and flight simulation customers throughout the North America, Europe and mainland China.
• Widened live in-arena game testing of the ButtKicker Live! broadcast technology with a major sports league to include two potential broadcast partners.

Commenting on the second quarter results, Mark Luden, President of Guitammer stated, "We're pleased to see our core ButtKicker brand hardware business regain its growth trajectory while maintaining our gross margins.

Our deployment of "4D" enabled movie theater seats continues to grow. We expect to release our first ever in-theater onscreen commercial in September designed to introduce ButtKicker brand home products to the theater audience.

And we are pleased with the private placement equity we've raised this year in anticipation of the initial deployment of our patented broadcast technology, ButtKicker Live! . We expect to have more information available about this in the coming months."

To learn more about the Company's business including its business model for monetizing ButtKicker Live!, please see our new corporate video at: http://guitammer.com/corporate_presentation.html

About The Guitammer Company
The Guitammer Company, based in 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 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. ButtKicker® brand products are distributed by Pearl Drums for musicians under the trade name, "Pearl's Throne Thumper by ButtKicker".  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 on The Guitammer Company and detailed product information, visit www.guitammer.com  and www.thebuttkicker.com  

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Safe Harbor:

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.

For More Information Contact:
Media         
The Guitammer Company      
614) 898-9370        
[email protected]  

- financial tables follow -

SOURCE The Guitammer Company