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Fifty-six percent decline blamed on failed launch of weight loss system.
April 13, 2007
By: TOM BRANNA
Editor
CCA Industries Inc., East Rutherford, NJ, said Friday its first-quarter profit fell 56 percent, as an unsuccessful takeover of the company incurred hefty costs.
Quarterly earnings decreased to $472,753, or 7 cents per share, from $1.1 million, or 15 cents per share during the same period last year. Revenue fell 6 percent to $13.8 million from $14.7 million.
The company attributed the decline in revenue to credits for returns and the unsuccessful launch of a new weight loss supplement in 2006, as well as increases in advertising and $312,610 in costs related to a failed buyout by Dubilier & Co.
Shares of CCA Industries rose 11 cents to $10.11 in afternoon trading on the American Stock Exchange.
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