Richard Ransom, President and Chief Financial Officer, stated, “I am very encouraged by the second quarter results, as we followed up a strong first quarter with solid revenue and earnings.
Wayne, PA (PRWEB) August 14, 2013
International Commercial Television, Inc. (OTCQB: ICTL) ("ICTV" or "the Company"), a company employing prominently profiled infomercial campaigns to market and brand unique products to the global consumer through multi-channels of distribution, is announcing the following:
On August 13, 2013, the Company filed its second quarter Form 10-Q for the quarter ended June 30, 2013. Here are the financial highlights for the second quarter 2013:
Revenues increased by 173% and 252% to $10,455,000 and $22,855,000 for the three and six months ended June 30, 2013, as compared with $3,836,000 and $6,492,000 for the same periods in 2012;
Gross margin percentage improved to 72% from 62% for the same periods last year;
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) was $697,000 and $2,212,000 for the three and six months ended June 30, 2013 as compared with $236,000 and $332,000 for same periods in 2012;
Net income for the three and six months ended June 30, 2013 was $649,000 and $1,817,000, compared with $112,000 and $91,000 for the same periods in 2012;
Basic earnings per share three and six months ended June 30, 2013 was $0.03 and $0.09, up from earnings per share of $0.01 and $0.00 for the same periods in 2012.
There are three significant reasons for the increase in net income. The first reason was the increase in gross margin of 10% for both periods. Since sales of both DermaWand and DermaVitál increased significantly, the Company was able to take advantage of pricing discounts based on the quantity of goods it purchased from its suppliers. In addition, the gross margin also increased due to a higher percentage of sales coming from the DRTV business, which generates the highest margins.
The second reason for the increase in net income was the increase in continuity sales generated from the monthly shipments of the Company’s DermaVitál skincare products. Sales from DermaVitál for the three and six months ended June 30, 2013 were approximately $1,077,000 and $2,113,000 as compared to approximately $224,000 and $371,000 during the three and six months ended June 30, 2012. Since these sales occur after the expense of acquiring the customer has already occurred (i.e. media expenses, telemarketing expenses, etc.), the profit margin on these particular sales is high, compared to the initial DRTV sale that results directly from the running of an infomercial.
The third major reason for the increase in net income was the increase in sales from our international distribution for the six months ended June 30, 2013. Sales to 3rd party international distributors were approximately $2,240,000 for the six months ended June 30, 2013, compared with sales of approximately $1,947,000 for the six months ended June 30, 2012. These sales are also highly profitable as the Company incurs no expense of acquiring the customers, just the cost of goods.
Richard Ransom, President and Chief Financial Officer, stated, “I am very encouraged by the second quarter results, as we followed up a strong first quarter with solid revenue and earnings. This is a significant accomplishment for the Company as the second quarter is typically one of the toughest quarters for the Company and the Direct Response Television Industry as a whole, as television viewership declines during the summer months. I am excited about the new projects that the Company will be rolling out over the next six to nine months and optimistic that we will carry forward the strong momentum from the first six months of results for the remainder of the year.”
The Company encourages all investors and interested parties to visit its corporate website: (http://www.ictvonline.com). Anyone who is interested in receiving direct communication with the latest news about the Company can go to the website and sign up to receive the Investor Newsletter. The Company also post regular updates on its Facebook page: https://www.facebook.com/ICTVONLINE.
International Commercial Television, Inc.’s stock is now listed on the OTCQB with the ticker symbol of ICTL. OTCQB consists of nearly 4,000 emerging companies that are current in their reporting obligations to the SEC or a U.S. banking regulator.
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Headquartered in Wayne, Pennsylvania, International Commercial Television, Inc. is a rapidly expanding global consumer products company marketing unique and effective products in clearly defined market segments particularly health and beauty, fitness and leisure sports and children’s products, with distribution channels in place in over 35 countries worldwide. The Company utilizes a distinctive marketing strategy and multi-channel distribution model to develop, market, and sell their products. Marketing and distribution of the Company's products is done through infomercials, live home shopping television, specialty outlets, online shopping, and other forms of distribution.
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.
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.
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International Commercial Television, Inc.