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CCA Industries, Inc. Reports First Quarter Results and Completion of Outsourcing Move


News provided by

CCA Industries, Inc.

Apr 14, 2014, 05:37 ET

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EAST RUTHERFORD, N.J., April 14, 2014 /PRNewswire/ -- CCA Industries, Inc. (NYSE MKT: "CAW") announced today its results for the first quarter ended February 28, 2014. 

The Company reported total revenues for the first quarter ended February 28, 2014 of $7,750,252 and a net (loss) of $(1,239,565).  Total revenues for the first quarter ended February 28, 2013 were $11,799,649 and the net (loss) was $(1,015,390).  Basic and fully diluted losses per share for the quarter were $(0.18) as compared to $(0.14) for the same quarter last year.

"We are moving rapidly to leverage our new association with the Emerson Group to help increase our brand distribution base. This largely reflects the power of scale The Emerson Group brings to our company by managing over $1.7 billion in annual consumer sales against a variety of niche consumer product brands very similar to ours with the retailers in all classes of trade," stated Richard Kornhauser, Chief Executive Officer and President. "Moreover, and concurrently with the outsourcing effort, we have taken significant action to drive consumers to the shelves to purchase our brands by redeploying much of the cost savings achieved into added media and new harder working advertising that moves product. We have already seen a very positive response to our efforts in March as our renewed and enhanced marketing efforts reinforce our brand connection to the consumer. While the accelerated shift to outsourcing—achieved 30-days quicker than originally anticipated— is highly beneficial and delivers substantial cost savings to us through the year—it did lead to some logistical early challenges that impeded our business results in the First Quarter of 2014. These issues are principally corrected.  Importantly, we believe that the benefits of our efforts in totality will dramatically help drive brand awareness, enhance our distribution base, and improve in-store merchandising which we believe will prove highly positive starting in the second quarter and throughout fiscal 2014 and beyond," concluded Mr. Kornhauser.

CCA Industries Inc. manufactures and markets health and beauty aids, each under its individual brand name.  The products include, principally, "Plus+White" toothpastes and teeth whiteners, "Mega-T" Green Tea diet supplements, " "Bikini Zone" medicated topical and shave gels, "Nutra Nail" nail care, " "Scar Zone" scar treatment products, "Sudden Change" anti-aging skin care products, "Solar Sense" sun protection products, and "Pain Bust RII" an analgesic product.

Statements contained in the news release that are not historical facts are forward looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such forward-looking statements, including statements regarding expectations with respect to future operating results, anticipated future cost savings, anticipated timing and cost of implementation of the operational changes described in this new release and the manner in which the operational changes described in this news release, and the timing of their implementation, may affect future operating results, are subject to risks and uncertainties, which would cause actual results to differ materially from estimated results. Such risks and uncertainties are detailed in the Company's filings with the Securities and Exchange Commission.  No assurance can be given that the results in any forward-looking statement will be achieved, and actual results could be affected by one or more factors, which could cause them to differ materially.  For these statements, we claim the protection of the safe harbor for forward-looking statements contained in the Private Securities Litigation Reform Act and otherwise under applicable law.

CCA INDUSTRIES, INC.

FIRST QUARTER

NEWS RELEASE




Three Months Ended

February 28, 2014

February 28, 2013




   Revenues

$ 7,750,252

$ 11,799,649




   Net Income

$ (1,239,565)

$ (1,015,390)




   Per Share Earnings



      Basic

$ (0.18)

$ (0.14)

      Diluted

$ (0.18)

$ (0.14)




   Weighted Average



   Shares Outstanding



      Basic

7,006,684

7,054,442

      Diluted

7,006,684

7,054,442

SOURCE CCA Industries, Inc.

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