WAYNE, PA — (Marketwired) — 11/13/13 — International Commercial Television, Inc. (OTCQB: ICTL), (or “ICTV”), a direct response marketing and branding company focused on the health and beauty sector, today reported financial results for the three and nine months ended September 30, 2013.
Third Quarter 2013 Highlights:
Revenues of $8.3 million, up 32% from a year earlier
Gross margins of 74.1%, up from 69.7% a year earlier
Net income of $0.1 million versus a ($0.2) million loss a year earlier
3rd consecutive profitable quarter
Strengthened balance sheet with a current working capital ratio of 2.35X, up from 1.1X at the end of 2012
Improved shareholders- equity to approximately $2.0 million, up from a negative $0.4 million at the end of 2012
Continued roll-out and expansion of DermaVital® continuity line
Solidifying future projects pipeline to build upon DermaWand success
Revenues for the three and nine months ended September 30, 2013 were approximately $8.3 million and $31.2 million, increases of 32% and 144% when compared with revenues of approximately $6.3 million and $12.8 million for the same periods in 2012. The increase in revenue is primarily due to the continued success of our infomercial. As the Company continues to build the DermaWand brand and exposure, media related expenditures increased to approximately $2.8 million and $9.5 million for the three and nine months ended September 30, 2013, compared to approximately $2.4 million and $4.3 million for the three and nine months ended September 30, 2012.
Net income for the three and nine months ended September 30, 2013 was approximately $101,000 and $1.9 million compared to a net loss of approximately $217,000 and $126,000 for the same periods in 2012. Contributing to the increase was the growth in continuity sales generated from the monthly shipments of the Company-s ® skincare products. Sales from DermaVital® for the three and nine months ended September 30, 2013 were approximately $1.1 million and $3.2 million as compared to approximately $381,000 and $752,000 during the three and nine months ended September 30, 2012. Since the majority of these sales occur after the expense of acquiring the customer has already occurred (i.e. media expenses, telemarketing expenses, etc.) as well as with lower materials costs, the profit margin on these particular sales is high, compared to the initial DRTV sale that results directly from the running of an infomercial.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was approximately $184,000 and $2.4 million for the three and nine months ended September 30, 2013 as compared with approximately $244,000 and $576,000 for same periods in 2012. Basic earnings per share three and nine months ended September 30, 2013 was $0.00 and $0.09, up from a loss per share of ($0.01) for the same periods in 2012.
As of September 30, 2013, the Company had $903,000 in cash (including cash held in escrow), compared to $908,000 at December 31, 2012. We generated positive cash flows from operations of approximately $76,000 in the nine months ended September 30, 2013. As of September 30, 2013, the Company had a working capital of approximately $2,756,000, compared to approximately $336,000 at December 31, 2012.
Richard Ransom, President and Chief Financial Officer, stated, “I am pleased to be reporting ICTV-s third consecutive profitable quarter. Through the first nine months of 2013, the Company has already surpassed revenue and earnings for all of 2012. In addition, our working capital is the highest it-s been in the last several years. We are excited about the impact of our new products under development and are confident the strong momentum over the past nine months will continue.”
Conference Call
ICTV will hold a conference call to discuss the Company-s third quarter 2013 results and answer questions today, November 13, 2013, beginning at 4:30 p.m. Eastern time. The call will be open to the public and will have a corporate update presented by ICTV-s Chairman and Chief Executive Officer, Kelvin Claney, and ICTV-s President and Chief Financial Officer, Richard Ransom, followed by a question and answer period.
The live conference call can be accessed by dialing (877) 407-9039 or (201) 689-8470. Participants should ask for the Earnings Conference Call. Participants are recommended to dial-in approximately 10 minutes prior to the start of the event. A replay of the call will be available approximately two hours after completion through November 27, 2013. To listen to the replay, dial (877) 870-5176 (domestic) or (858) 384-5517 (international), and enter conference ID # 13572742. The call will be recorded and posted to the Company-s corporate website () for those who are unable to attend the live call.
About International Commercial Television, Inc.
sells various health and beauty products through infomercials and other channels primarily in the United States. ICTV utilizes a distinctive marketing strategy and multi-channel distribution model to develop, market and sell products through infomercials, live home shopping television, specialty outlets and online shopping. It offers health and beauty products, including DermaWand a skin care device that reduces the appearance of fine lines and wrinkles, and helps improves skin tone and texture; and DermaVitál®, a professional quality skin care range that effects superior hydration. International Commercial Television Inc. was founded in 1993 and headquartered in Wayne, Pennsylvania.
Non-GAAP Financial Information
Adjusted EBITDA is defined as income from continuing operations before depreciation, amortization, interest expense, interest income, and stock-based compensation. Adjusted EBITDA is not intended to replace operating income, net income, cash flow or other measures of financial performance reported in accordance with generally accepted accounting principles. Rather, Adjusted EBITDA is an important measure used by management to assess the operating performance of the Company. Adjusted EBITDA as defined here may not be comparable to similarly titled measures reported by other companies due to differences in accounting policies.
Forward-Looking Statements
The matters discussed in this press release may contain “forward-looking statements” (as defined in the Private Securities Litigation Reform Act of 1995). The Company intends that the safe harbor provisions of Section 21E of the Securities Exchange Act of 1934, as amended, and Section 27A of the Securities Act of 1933, as amended, apply to forward-looking statements made by ICTV. Undue reliance should not be placed on forward-looking statements as they may involve risks and uncertainties. The actual results that ICTV achieves may differ materially from any forward-looking statements due to such risks and uncertainties.
Contact Information
International Commercial Television
Rich Ransom
484-598-2313
Stephen Hart
Hayden IR
917-658-7878