CCA Industries Posts Net Revenue Growth For Fiscal 3rd Quarter & First Nine Months of 2014

EAST RUTHERFORD, N.J., Oct. 14, 2014 /PRNewswire/ -- CCA Industries, Inc. (NYSE MKT: "CAW"), announced today its third quarter and nine month results for the period ended August 31, 2014.  The results can be found on the chart below.

THIRD QUARTER FINANCIAL RESULTS

Total revenue from continuing operations for the third quarter of fiscal 2014 was $8,017,261 up $840,277 or +11.7% versus the prior year quarter. Net sales of our Health & Beauty Aid business for the third quarter was $7,807,019, an increase of $622,119 or +8.6% versus the prior year quarter. Revenue growth for the quarter was led by the continued strength of our skin care business (Bikini Zone and Sudden Change), up 22.4% over the same quarter last year. Both brands were supported with national television advertising during this period as part of the Company's enhanced 2014 media program.  Total revenue excludes sales of the Gel Perfect nail color brand, which was discontinued at the end of the 2nd quarter of fiscal 2014 and the Mega T dietary supplement brand, which the Company divested in August 2014. Both of these brands are reported as discontinued operations, the results of which are shown in the income statement highlights provided with this press release.

Net income of both continuing and discontinued operations in the third quarter of fiscal 2014 was $688,111, compared to a net operating loss of ($792,892) in the same quarter last year due to a substantial reduction in SG&A costs of $1,875,385 reflecting (i) the outsourcing plan initiated earlier in the year (ii) elimination of unproductive programs and (iii) on-going reductions in employee headcount. SG&A savings were deployed, to a large degree, to fund our continuing effort to renew our brand's connection with the consumer through national advertising and accelerating efforts to enhance our brand's in-store presence with more effective packaging.

NINE-MONTH FINANCIAL RESULTS

For the first nine months of fiscal 2014, total revenues from continuing operations were $25,104,842, an increase of $1,804,475 or 7.7% as compared to the same period last year. Net sales of our Health & Beauty Aid business for the nine months ended August 31, 2014 was $24,650,057, an increase of $1,400,204 or +6.0% as compared to the same period last year. Revenue growth was driven by sales gains realized for Plus White oral care brand (+6.4%), and skin care, which includes Bikini Zone and Sudden Change brands (+8.1%). Each of these brands, during this period, was supported with increased advertising versus prior year period to reignite their connection with the consumer to drive sales. Total revenue excludes sales of the Gel Perfect nail color brand, which was discontinued at the end of the 2nd quarter of fiscal 2014 and the Mega T dietary supplement brand, which the Company divested in August 2014. Both of these brands are reported as discontinued operations, the results of which are shown in the income statement highlights provided with this press release.

The net loss for the first nine months of fiscal 2014, including continuing and discontinued operations, was $(4,688,159), as compared to a loss of $(1,965,119) for the same period in fiscal 2013.  The increased net loss was due to losses from discontinued operations.  Losses from continuing operations decreased to $(937,178) for the nine months ended August 31, 2014 from a loss of $(2,638,926) for the same period in fiscal 2013.  The decrease in the net loss from continuing operations was due to a decrease in selling, general and administrative expenses of $4,562,426, as a result of the implementation of the Company's outsourcing plan and a reduction in personnel.  Advertising expense increased $2,776,659, as the Company redirected its focus onto national advertising for its key brands in order to connect with the consumer.  The Company continued to generate losses during fiscal 2014 as the Company's restructuring program has not been completed as of the end of the third quarter of fiscal 2014.  The Company anticipates additional restructuring charges in the fourth quarter of fiscal 2014, and that the restructuring will be complete by the first quarter of fiscal 2015. 

Richard Kornhauser, Chief Executive Officer and President of CCA Industries, Inc. said, "We are encouraged by the performance of our core brands during this period, but believe we have more work to do to achieve sustained positive brand and Company performance. We are committed to leveraging the power of our brands, together with the talent that our management team, employees, and Board of Directors offer to propel sustained success and drive an increase in shareholder value. We believe the working capital loan closed on September 5th 2014 will help us meet our Company's goals.

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, "Bikini Zone" medicated topical and shave gels, "Nutra Nail" nail care treatments, "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 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.

CCA INDUSTRIES, INC.

SOURCE CCA Industries, Inc.

Related Links

http://www.ccaindustries.com