Incorporated in 1983 and based in Lyndhurst, New Jersey, CCA Industries Inc. (OTCMKTS:CAWW) manufactures and distributes health and beauty aid products, both in the United States and internationally. It offers oral health-care products such as Plus+White that include toothpastes and teeth whiteners, Nutra Nail for nail care treatments, Porcelana skin care products, Scar Zone scar treatment products, Sudden Change for anti-aging skin care products, and many more! The company has come up with Neutein brain health supplements too, which it licensed in January 2022. Products are sold to drug, food, and mass-merchandise retail chains, warehouse clubs, and wholesale beauty-aids through independent sales representatives and distributors, as well as online.
Trading Data
On Friday, CAWW stock moved up 7.69% to $1.40 with 4.2K shares, compared to its average volume 3.2k shares. The stock moved within a range of $1.3750 – 1.4000 after opening trade at $1.40.
CCA Industries, Inc. Reports Net Income for the Quarter and Six Months ended May 31, 2022
On July 15, 2022, CCA Industries, Inc. announced results for the three and six months ended May 31, 2022. Detailed information including the Unaudited Financial Statement for the quarter and six months ended May 31, 2022, the Audited Financial Statements for the year ended November 30, 2021 and the Quarterly Disclosure Statement filed with the OTC, is available on the company website.
Net income for the three months ended May 31, 2022, was $229,075 as compared to net income of $282,034 for the three months ended May 31, 2021. Net income for the six months ended May 31, 2022, was $253,651 as compared to net income of $355,554 for the six months ended May 31, 2021. But the net income for the six months ended May 31, 2021 included a $316,400 gain on extinguishment of debt as a result of the forgiveness of the loan granted under the Paycheck Protection Program by the United States Small Business Administration. This was a non-cash transaction as the funds were received in fiscal 2020.
The EBITDA for the first six months of fiscal 2022 was $391,711 as compared to $197,956 for the first six months of fiscal 2021 after adjusting for the Paycheck Protection Loan forgiven.
Christopher Dominello, Chief Executive Officer of CCA Industries, has said that sales have shown significant growth, while the management has worked to minimize costs to boost profitability of those sales. The focus remains on digital advertising through social media for effective promotion of products. For instance, a consumer created a video, totally unsolicited, showing Plus White on TikTok, which became viral with over 2.7 million views. Even in such tough and unstable economic times, the Plus White whitening kit continues to outperform its competitors in the marketplace.
Regarding future plans, Dominello stated that they are looking to reposition other brands to drive retail store sales. There were quite a few hurdles over the past few years, and while recovery isn’t expected overnight, there is progress that indicates further growth and increased profitability in fiscal 2023.
Key Quote
Christopher Dominello, Chief Executive Officer commented, “Our online sales have continued to grow substantially, while at the same time we worked to reduce costs that increased the profitability of those sales. The Company continues to focus on digital advertising through social media in order to promote our products. A consumer made a video, completely unsolicited, showing Plus White on TikTok which became viral with over 2.7 million views. While these are challenging economic times, our Plus White whitening kit continues to outperform its competitors in the marketplace. We are also working to reposition our other brands to drive retail store sales. The Company has had its challenges over the past few years, and while we do not expect to recover overnight, there is progress which indicates further growth and increased profitability in fiscal 2023.”
Technical Data
CAWW stock is trading above the 20-Day and 50-Day Moving averages of $1.53 and $1.69 respectively. Moreover, the stock is trading below the 200-Day moving average of $3. The company has a total market capitalization of $10.44 million. The stock is down 53% over the past 6-month.
