Digital Shelf Space Corp. (CVE:DSS) (OTCQX:DTSRF) said Thursday that its revenue exceeded $2.5 million in 2011, showing fast-paced growth as the entertainment content producer and distributor went from generating virtually nil revenues in 2010.
The company is behind the popular GSP RUSHFIT DVD series, which stars
Mixed Martial Arts (MMA) welterweight world champion Georges St-Pierre,
and has exploded in popularity since launching in December 2010, with
international distribution taking off.
Just last week, the company announced the home workout DVD series
began retailing in Australia in the first quarter, and last month
announced the start of retailing in the Philippines.
The GSP RUSHFIT 8-week workout series appeals to those with an
interest in MMA and MMA training methods, for an efficient home fitness
workout program, with minimal equipment. The product uses various MMA
conditioning exercises, intense circuit style training and body weight
training for fitness consumers to build muscle, cut weight and get in
Total revenue of $2.57 million for the year that ended December 31,
2011, compared to $47,204 in the prior year, was driven primarily by the
company's flagship GSP RUSHFIT series.
In addition to the product sales directly through the GSP RUSHFIT
website, wholesale revenues now represents 50 percent of the company's
total annual sales.
The company's GSP RUSHFIT DVD workout series has been placed in over
4,000 stores across Canada, beating its own initial target of 3,000
stores, and capturing over 80 percent of the key Canadian retail
distribution channels available.
The fitness series is now represented in more than 90 countries
around the world, with distribution channels increasing markedly in 2011
through Digital Shelf' Space’s global distribution agreement with
In Canada, it is already carried by major retailers including Sears Canada, Zellers, Wal-Mart, Future Shop, National Sports, Sports Experts, Sport Check, Best Buy, and Canadian Tire, and in the US by The Sports Authority and Academy Sports and Outdoors.
Plans for international expansion continue to move forward, with the
company currently in ongoing negotiations. Digitial Shelf Space said it
anticipates new markets to be opened throughout 2012.
"We are very pleased with the 2011 year end financial results," said Digital Shelf Space president and CEO, Jeffrey Sharpe.
"To have essentially gone from an non-revenue generating company in
2010, to launching our flagship product GSP RUSHFIT in 2011 and
surpassing $2.5M in revenue on a fairly modest advertising budget, is a
significant achievement for our team.
"We are even more excited about our growth strategy for 2012 which
includes looking to add new global branded media products in the sport
instruction and fitness categories into our library, as well as
expanding our distribution channels both in North America and
internationally and extending our marketing and advertising reach for
the GSP RUSHFIT brand."
Despite operating expenses more than doubling in 2011 to $3.78
million to support the increased revenue generated from the GSP RUSHFIT
DVD series, net loss actually narrowed by 18 percent to $1.17 million,
the company said.
Digitial Shelf Space is on path to maintain its fast growth pace. In
December, the company announced a new long-term licence agreement with
Georges St-Pierre (GSP), for potential future fitness products and
services under the RUSHFIT moniker.
The new licence expands on the original 2010 agreement between Digital Shelf Space and GSP, which was signed for exclusively the GSP RUSHFIT DVD series.
The GSP RUSHFIT DVD series was launched in December of 2010, and can be purchased directly through the GSP RUSHFIT website at www.gsprushfit.com.
Digital Shelf Space
is an independent creator, producer and distributor of entertainment
content specializing in the fitness and sport media segment of the
Last week, the company said it closed its over-subscribed $1.5
million brokered private placement financing through Fin-XO Securities.