Conference Call Begins November 21, 2017 at 10:00am EDT
Wayne, PA — (Marketwired) – November 20, 2017 – 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, today reported financial results for the three months ended September 30, 2017.
Third Quarter 2017 Highlights:
• Delivered revenue of approximately $7.56 million, up 80% compared to the prior year quarter.
• Achieved positive Adjusted EBITDA of $256,000, up 299% compared to prior year quarter.
• Total assets increased to approximately $17.2 million from approximately $4.5 million at December 31, 2016, which includes approximately $7.5 million in inventory and approximately $960,000 in cash and equivalents.
Richard Ransom, President, stated, “During the third quarter ICTV’s two flagship brands were placed in several new brick and mortar retail stores, including Shopper’s Drug Mart and expansion to over 300 additional Bed Bath & Beyond locations. This positions ICTV to maximize our sales during the prime retail season between Thanksgiving and New Year’s Day. In addition to retail initiatives in North America, our team has been focused on expanding the international distribution platform in both South America and Asia. We believe that the work our team has done over the last several months positions ICTV well for substantial growth in 2018 and the year to come.”
Reported Financial Results:
Third Quarter 2017 Compared to Third Quarter 2016:
Revenues for the three months ended September 30, 2017 were approximately $7.56 million, compared to approximately $4.2 million for the three months ended September 30, 2016. For the three months ended September 30, 2017, we generated approximately $4.5 million in gross profit, compared to approximately $3.0 million during the three months ended September 30, 2016 as a result of the addition of the no!no!TM, KyrobakTM and Cleartouch TM products acquired in January 2017. Gross profit margin was 60% in the third quarter 2017 compared to 72% in the prior year quarter. Total operating expenses increased to approximately $6.6 million from approximately $3.3 million during the third quarter of 2016, primarily related to the acquisition of the no!no! brand and other assets from PhotoMedex. The largest factor is an increase in internet marketing expenditures. Internet marketing expenses increased to approximately $1.2 million for the three months ended September 30, 2017 from approximately $299,000 during the three months ended September 30, 2016. Media expenditures were approximately $1.3 million and $1.4 million for the three months ended September 30, 2017 and 2016, respectively. In addition, payroll expenses increased to $565,000 during the three months ended September 30, 2017 from $367,000 during the three months ended September 30, 2016, as a result of additional employees from the PhotoMedex acquisition.
Net loss for the third quarter was approximately $387,000, compared to a net loss of approximately $262,000 in the prior year quarter. The resulting EPS is ($0.01), as compared to ($0.01) in the comparable quarter a year earlier. Adjusted earnings before interest, taxes, depreciation, and amortization (Adjusted EBITDA) was approximately $256,000 as compared to approximately ($128,000).
Nine Months Ended September 30, 2017 Compared to Nine Months Ended September 30, 2016
Revenues for the nine months ended September 30, 2017 were $23.2 million, increasing from $12.5 million in the prior year period as a result of the addition of the no!no!TM, KyrobakTM and Cleartouch TM products acquired in January 2017. For the nine months ended September 30, 2017, we generated $15.2 million in gross margin, compared to approximately $8.8 million during the nine months ended September 30, 2016 as a result of the addition of the no!no!TM, KyrobakTM and Cleartouch TM products acquired in January 2017. Gross margin percentage was approximately 65% and 70% for the nine months ended September 30, 2017 and 2016. Total operating expenses increased to approximately $19.0 million from approximately $9.7 million during the third quarter of 2016. This increase in operating expenses relates primarily to the PhotoMedex acquisition. The biggest increase was internet marketing expenditures. Internet marketing expenses increased to approximately $3.3 million for the nine months ended September 30, 2017 from approximately $899,000 during the nine months ended September 30, 2016. Media expenditures was approximately $4.2 million for the nine months ended September 30, 2017 compared to $4.0 million for the nine months ended September 30, 2016. In addition, payroll expenses increased to $2.0 million during the nine months ended September 30, 2017 from $1.1 million during the nine months ended September 30, 2016, as a result of additional employees from the PhotoMedex acquisition. Net loss was ($2.2 million), compared to ($951,000). EPS was ($0.04), as compared to ($0.03), and Adjusted EBITDA was approximately ($415,000) as compared to approximately ($458,000).
Balance Sheet as of September 30, 2017
As of September 30, 2017, the Company had approximately $.96 million in cash and cash equivalents and approximately $6.1 million in working capital compared to approximately $1.4 million and approximately $1.3 million as of December 31, 2016, respectively. The Company believes that our current cash will be sufficient to meet the anticipated cash needs for working capital for at least the next twelve months.
ICTV will hold a conference call to discuss the Company’s third quarter 2017 results and answer questions on November 21, 2017, beginning at 10:00am EDT. 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, President, Richard Ransom and Chief Financial Officer, Ernest P. Kollias, Jr., followed by a question and answer period. The live conference call can be accessed by dialing (866) 831-8713 or (203) 518-9713. 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 December 5, 2017. To listen to the replay, dial (800) 934-7776 (domestic) or (402) 220-6983 (international). The conference call transcript will be posted to the Company’s corporate website (https://www.ictvbrands.com) for those who are unable to attend the live call.
ICTV Brands, Inc.
ICTV Brands, Inc. sells primarily health, beauty and wellness products as well as various consumer products through a multi-channel distribution strategy. ICTV utilizes a distinctive marketing strategy and multi-channel distribution model to develop, market and sell products through, including direct response television, or DRTV, digital marketing campaigns, live home shopping, traditional retail and e-commerce market places, and our international third party distributor network. Its products are sold in the North America and are available in over 65 countries. Its products include 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, the CoralActives brand of acne treatment and skin cleansing products, and Derma Brilliance, a sonic exfoliation skin care system which helps reduce visible signs of aging, Jidue, a facial massager device which helps alleviate stress, and Good Planet Super Solution, a multi-use cleaning agent. On January 23, 2017, we acquired several new brands, through the PhotoMedex and Ermis Labs acquisitions and have begun (or, will shortly begin) marketing and selling the following new products; 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; no!no!® Face Trainer, a home use mask that supports a series of facial exercises; no!no!® Glow, a home use device that uses light and heat energy to treat skin; Made Ya Look, a heated eyelash curler; no!no!® Smooth Skin Care, an array of skin care products developed to work with the devices to improve the treated skin; 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; and Ermis Labs acne treatment cleansing bars. 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.
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.
Ernest P. Kollias, Jr.