ICTV Brands Reports 2Q18 Financial Results
Wayne, PA, Aug. 23, 2018 (GLOBE NEWSWIRE) -- ICTV Brands, Inc. (OTCQX: ICTV), (CSE: ITV), a digitally focused direct response marketing and international branding company focused on the health, wellness and beauty sector has reported financial results for the three months ended June 30, 2018 on August 22, 2018.
Second Quarter 2018 Highlights:
-- Revenue was approximately $7M vs $7.95M in the prior year quarter -- Gross margin was 68% vs 65% in the prior year quarter -- Net loss before taxes was approximately $600K, compared to a net loss before taxes of approximately $1.4M in the prior year’s quarter -- General and Administrative Expense decreased approximately $500K from $2.7M to $2.2M quarter over quarter -- Selling and Marketing Expense decreased approximately $900K from $3.9M to $3M quarter over quarter -- Operating expense margin of 75% compared to 82% in the prior year quarter. -- Retail segment sales was $1.8M, up 302% compared to the prior year quarter.
Douglas Crouthers, newly appointed President, stated, “This is a proud moment in the history of ICTV Brands, as both the no!no!® and DermaWand® brands continue to grow around the globe through retail expansion, international distribution, and televised live home shopping. We have seen an upswing in our retail exposure in the United Kingdom through June 30, 2018 over the same period of last year. We expect to continue to expand as a result of our media and promotion strategy for both our no!no!® and DermaWand® brands, with a special emphasis on our newest no!no!® product: the no!no!® PIVOT. We are looking to achieve the same exposure growth for our brands in North America as well, with new retailers coming on board in French Quebec, and English Canada, such as UniPrix, Hudson’s Bay, and Walmart Canada. With new products, new creatives and a clear focus on growing the international markets, the no!no!® brand alone has successfully rolled out from Mexico to Argentina while the DermaWand® brand has launched successfully in China. We have also been very excited for our launch of our DermaWand® Pro, which has been highly anticipated amongst our distributors, whom we have many pending orders. Overall, I am extremely proud of our team and our ability to partner with all of our customers with innovation and integrity.”
Reported Financial Results:
Three months ended June 30, 2018 compared to three months ended June 30, 2017:
Revenues for the three months ended June 30, 2018 were approximately $7M, compared to approximately $7.95M for the three months ended June 30, 2017. For the three months ended June 30, 2018, we generated approximately $4.8M in gross profit, compared to approximately $5.2M during the three months ended June 30, 2017. For the same period, the gross profit percentage increased to 68% from 65%, respectively. The increase in gross margin percentage was due to the decrease in the percentage of returns from 18% for the three months ended June 30, 2017 to 14% for the three months ended June 30, 2018. Total operating expenses decreased to approximately $5.3M for the three months ended June 30, 2018 from approximately $6.5M for the three months ended June 30, 2017. As a percentage of sales, total operating expenses decreased to 75% for the three months ended June 30, 218 compared to 82% for the three months ended June 30, 2017. The largest factor in this decrease can be attributed to reductions in selling and marketing expenses from $3.8M to $3.0M for the three months ended June 30, 2017 and 2018, respectively. More specifically, internet marketing expenses decreased from $1.2M to $851K and media spend decreased from $1.8M to $1.4M. which has proven our increased effectiveness of overall media spend. Net loss for the three months ended was approximately $700K, compared to a net loss of approximately $1.4M for the three months ended June 30, 2017.
ICTV Brands, Inc.
We develop, market and sell products through a multi-channel distribution strategy, including selling direct to consumer, live home shopping, traditional retail and e-commerce market places, Hong Kong airlines and our international third-party distributor network. We offer primarily health, beauty and wellness products as well as various consumer products, including:
-- DermaWand®, a skin care device that reduces the appearance of fine lines and wrinkles, and helps improve skin tone and texture; -- DermaVital®, a professional quality skin care line that effects superior hydration; -- CoralActives®, brand of acne treatment and skin cleansing products; -- DermaBrilliance®, a skin care resurfacing device that helps reduce visible signs of aging; -- Jidue, a facial massager device which helps alleviate stress; -- no!no!® Hair, a home use hair removal device; -- no!no!® Skin, a home use device that uses light and heat to calm inflammation and kill bacteria in pores to treat acne; -- Kyrobak®, a home use device for the treatment of non-specific lower back pain; -- ClearTouch®, a home use device for the safe and efficient treatment of nail fungus.
We acquire the rights to the products that we market primarily via licensing agreements, acquisition and in-house development and sell both domestically and internationally. We are continually exploring other devices and consumable product lines currently under licensing agreements that would complement our current portfolio of beauty products.
Our strategy is to introduce our brands to the market through a global omni-channel platform that includes but is not limited to direct response television, digital marketing, live home shopping, traditional retail, e-commerce market places, and international third-party distributor networks. Our objective is to sell our portfolio of products through these channels to develop long lasting brands with strong returns on investments.
ICTV Brands, Inc. was founded in 1998 and is headquartered in Wayne, Pennsylvania. For more information on our current initiatives, please visit www.ictvbrands.com
Forward-Looking Statements. This press release contains “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 (the “Exchange Act”) (which Sections were adopted as part of the Private Securities Litigation Reform Act of 1995). Statements preceded by, followed by or that otherwise include the words “believe,” “anticipate,” “estimate,” “expect,” “intend,” “plan,” “project,” “prospects,” “outlook,” and similar words or expressions, or future or conditional verbs such as “will,” “should,” “would,” “may,” and “could” are generally forward-looking in nature and not historical facts. These forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the Company’s actual results, performance or achievements to be materially different from any anticipated results, performance or achievements. The Company disclaims any intention to, and undertakes no obligation to, revise any forward-looking statements, whether as a result of new information, a future event, or otherwise. For additional risks and uncertainties that could impact the Company’s forward-looking statements, please see the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, including but not limited to the discussion under “Risk Factors” therein, which the Company has filed with the SEC and which may be viewed at http://www.sec.gov.
Contact Information: Ernest P. Kollias, Jr., CFO firstname.lastname@example.org 484-598-2300 Kelvin Claney, CEO email@example.com 484-598-2300 489 Devon Park Drive Suite 306 Wayne, PA 19087 T: 484-598-2300 F: 484-598-2301