CCA turns on a strong third quarter
health products, has announced a considerable increase in its third
quarter sales that is helping to drive the company towards its goal
of acquiring further brands.
The company said that sales ending August 31 came in at $16.31m, compared to $15.22m for the corresponding three months in 2005. Likewise the company said that its net income was $1.92m, compared to a loss of $390, 843 in 2005.
That loss in the third quarter of 2005 reflected the fact that the company had to change its accounting procedure to comply with SEC rules, which meant all previously deferred payments for advertising had to be accounted for.
The figures reflect a positive turn for the company's prospects this year, with sales for the first nine months of the year increasing from $48.65m last year, to $50.97 this year, and net income for the period increasing from $2.30m in 2005 to $4.70m.
For the first six months of the year the company reported that sales increases had been particulalry strong for its Plus White Oral Care Xtra Whitening Toothpastes and Speed Whitening Gels, as well as its Sudden Change green tea-based skin care line.
Likewise, the launch of the company's Bikini Zone shave gels has continued to be well received, alongside strong sales growth for its Hair Off depilatory kits.
Dunnan Edell attributed the jump in sales and profitability to the successful merchandising of the company's brands, adding that this had contributed to a very strong balance sheet.
CCA markets cosmetic and beauty aids under individual brands, mainly in the US market. These include Plus+White toothpastes and teeth whiteners, Sudden Change anti-aging, Nutra Nail growth treatments, as well as a number of hair removal products, sun protection products and perfumes.
In July of this year, the company received a hostile take-over bid by investment group Costa Brava Partners, which involved an offer of $13 a share for a controlling stake in the company's Class A stock.
At the time of the offer co-directors David Edell and Ira Berman said that they had no intention of selling their controlling stake in CCA.
At the beginning of the year the company said it would be actively looking for new brands to purchase and, with the company's financial position continuing to be strong, it is still looking out for additions to the product portfolio.
CCA is ultimately aiming to achieve a yearly turnover of $100m a year.