EAST RUTHERFORD, N.J. — CCA Industries, a manufacturer and marketer of health and beauty aids whose portfolio includes Plus+White toothpaste, Bikini Zone shave gel and Gel Perfect UV-free gel nail color, posted a loss during fiscal 2013, but expects to benefit from its outsourcing agreement with Emerson Group in 2014.
For the fiscal year ended Nov. 30, the company had total revenues of $38.85 million, and a net loss of $6.19 million compared with revenues of $53.78 million and a net income of $465,452 for fiscal 2012. Basic and fully diluted losses per share were 88 cents for fiscal 2013 compared with earnings per share of 7 cents for fiscal 2012.
Total revenues for the fourth quarter of 2013 were $6.06 million compared with $11.37 million for the fourth quarter of 2012. The net loss for the fourth quarter of 2013 was $4.23 million versus a loss of $352,929 for the fourth quarter of 2012. Basic and fully diluted losses per share were 60 cents for the fourth quarter of 2013 versus a loss of 5 cents in the fourth quarter of fiscal 2012.
The large loss in the fourth quarter of fiscal 2013 was due to lower sales of the company's nail color brand and diet brand, combined with higher reserves for returns and inventory related to the nail color brand.
"As previously reported, we do not anticipate those substantial losses continuing in fiscal 2014," said Richard Kornhauser, president and CEO. "We believe CCA is well positioned for fiscal 2014 due to the outsourcing agreement with the Emerson Group, which significantly lowered our costs. The company is investing some of this savings into a more robust media advertising campaign for fiscal 2014, which should promote the growth of our brands. We expect to start realizing the savings from the outsourcing agreement beginning in the second quarter of fiscal 2014.”