CCA Industries, Inc. Reports Third Quarter 2020 Results

Rhea-AI Summary

CCA Industries, Inc. (OTC: CAWW) reported a net income of $80,225 for Q3 2020, a significant turnaround from a net loss of $59,747 in Q3 2019. Total revenues for the quarter were $3,735,176, down from $4,108,891 in the previous year. Year-to-date earnings have been impacted by substantial legal fees incurred for the acquisition of the Solar Sense brand. CEO Lance Funston highlighted a strategic shift towards online sales to counteract pandemic-related retail losses. YTD revenue decreased to $10,873,216 from $13,468,602 in the prior year.

Positive

• Transition to online sales has helped mitigate revenue losses due to pandemic.
• Achieved a net income of $80,225 compared to a loss in the same quarter last year.

Negative

• Total revenues decreased to $3,735,176 from $4,108,891 year-over-year.
• Year-to-date earnings included extraordinary legal fees affecting profitability.
• YTD revenue dropped to $10,873,216 from $13,468,602.

LYNDHURST, N.J., Oct. 15, 2020 /PRNewswire/ -- CCA Industries, Inc. (OTC: "CAWW") announced today its results for the third quarter and nine months ended August 31, 2020, which can be found in the table below.

The Company reported earnings of $80,225 for the three months ended August 31, 2020 compared to a net loss of $59,747 for the same period in fiscal 2019.  Lance Funston, Chief Executive Officer commented, "I commend management for its proactive response in reducing SGA expenses to offset the reduction in retail sales due to the pandemic.  In addition to expense reductions, the online division, under the leadership of Chris Dominello, our Chief Growth Officer, replaced a substantial part of the revenue lost to COVID 19.  As we look forward, in my judgement, the company needs to shift investment and product development from traditional retail to a virtual digital online platform which will reduce the Company's exposure to the unpredictable effects of a pandemic."  As previously disclosed, the year to date earnings were also affected by the extraordinary legal fees related to the acquisition of the Solar Sense brand in the first quarter of fiscal 2020. 

The Company's financial statements for the quarter and nine months ended August 31, 2020 can be found on the Company's investor web site:  www.ccainvestor.com  

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, "Porcelana" skin care products, "Scar Zone" scar treatment products,  "Sudden Change" anti-aging skin care products and two newly acquired brands, "Hair Off" and "Solar Sense". 

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 past 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.
	Three Months Ended
	August 31, 2020		August 31, 2019
Revenues	$                 3,735,176		$                4,108,891
Net Income (Loss)	$                      80,225		$                    (59,747)
Net Earnings (Loss) Per Share:
Basic	$                             .01		$                         (0.01)
Diluted	$                             .01		$                         (0.01)
Weighted Average Shares Outstanding:
Basic	7,686,684		7,456,684
Diluted	7,705,339		7,456,684
EBITDA *	$                     296,737		$                       (1,441)
* Earnings before interest, taxes, depreciation and amortization
Reconciliation of Net (Loss) Income to EBITDA:
NET INCOME	$                       80,225		$                     (59,747)
TAX	152,259		(25,850)
INTEREST	56,979		71,690
DEPRECIATION/AMORITIZATION	7,274		12,466
EBITDA	$                    296,737		$                        (1,441)

 

CCA INDUSTRIES, INC.
	Nine Months Ended
	August 31, 2020		August 31, 2019
Revenues	$                 10,873,216		$                 13,468,602
Net (Loss) Income	$                     (212,169)		$                      483,812
Net (Loss) Earnings Per Share:
Basic	$                           (0.03)		$                            0.06
Diluted	$                           (0.03)		$                            0.06
Weighted Average Shares Outstanding:
Basic	7,642,157		7,456,684
Diluted	7,686,130		7,456,684
EBITDA *	$                    136,638		$                     900,245
* Earnings before interest, taxes, depreciation and amortization
Reconciliation of Net (Loss) Income to EBITDA:
NET INCOME	$                  (212,169)		$                     483,812
TAX	105,716		176,192
INTEREST	218,515		205,039
DEPRECIATION/AMORITIZATION	24,576		35,202
EBITDA	$                   136,638		$                     900,245

 

View original content:http://www.prnewswire.com/news-releases/cca-industries-inc-reports-third-quarter-2020-results-301153640.html

SOURCE CCA Industries, Inc.

FAQ

What are the Q3 2020 results for CAWW?

CCA Industries reported a net income of $80,225 for Q3 2020, compared to a net loss of $59,747 in Q3 2019.

How much revenue did CAWW generate in Q3 2020?

In Q3 2020, CAWW generated $3,735,176 in revenue, down from $4,108,891 in the same period last year.

What is the year-to-date revenue for CAWW as of August 31, 2020?

As of August 31, 2020, CAWW's year-to-date revenue was $10,873,216, a decrease from $13,468,602 in the previous year.

What factors impacted CAWW's net income in 2020?

CAWW's net income was affected by extraordinary legal fees related to the acquisition of the Solar Sense brand.

How has CAWW adjusted its business strategy due to the pandemic?

CAWW is shifting investment and product development towards a virtual digital online platform to reduce exposure to retail disruptions caused by the pandemic.