Cliff Note #72 - CCA Industries, Inc. | $CAWW
40-year old 'Run to $1' Consumer Product Company
Themes:
Run to One; Restructuring; Asset Sale; Shift to on-line
Data
Price: $0.44
Revenue: $12M
Debt: Zero
Cash: $1.5M
P/E 2024 est: TBD
P/E trailing 12 months: Losing Money
EV/S on 2024 revenue est: TBD
EV/S trailing 12 months: 0.13x
What they do:
CCA Industries manufactures (via third-party contractors) over-the-counter health and beauty products. All Company products are marketed and sold to major drug, food chains, mass merchandisers and wholesale beauty aids distributors throughout the United States, as well as internet sales. In addition, certain of the Company’s products are sold internationally through distributors.
Some History:
The company stopped filing with SEC in 2019 but still files financials on OTC Markets. You might be familiar with some of their brands, a few being iconic: “Plus+White” (oral health-care products),“Sudden Change” (skin-care products), “Nutra Nail” (nail treatments), “Bikini Zone” (pre and after-shave products), "Porcelana" (skin-care products), “Hair Off” (cream), “Sunset Cafe” (perfumes), “Lobe Miracle” (ear-care product) and “Scar Zone” (scar diminishing cream).
Sales peaked in 2006 at $64M, with EPS peaking at about 80 cents. Revenues have been on a consistent decline, now at an annual run-rate of $12M, and the company is losing money. From reading past press releases and conference call transcripts, it appears that the company became too comfortable with the leadership position of some of its brands, failed at its marketing strategies to maintain leadership positions and sell new products, failed at its digital marketing strategies, lost some key retail customers and did not have proper controls to monitor KPIs as well as the status of relationships with some of its retail customers.
The stock’s all-time high was $13.47, reached in 2005.