Pompano Beach, Fla., May 15, 2014 (GLOBE NEWSWIRE) -- DS Healthcare Group, Inc. (NASDAQ: DSKX), a leading developer of personal care products and specialty pharmaceuticals, today announced financial results for the three months ended March 31, 2014.
"In the first quarter of 2014 we took numerous strategic actions to continue to solidify our position as a global leader in products that promote hair regrowth and deter hair loss. For the quarter our revenues were $2,684,964, a decline compared to the same period last year primarily due to a carry over of more than $1 million in shipments from the first quarter of 2014 into the second, combined with bad winter weather being factors, in what is seasonally the slowest quarter of the year. We are projecting sales for the 2014 full year in line with our historical 6-year growth rate of on average approximately 40%." stated DS Healthcare President and CEO Daniel Khesin. "We expect to deliver an all time record second quarter, with revenues of between $4 million and $5 million." Khesin continued. "Our business relies on numerous factors for shipping products in certain periods, some of which are not in our control. However, we are committed to delivering shareholders with consistent and steady yearly growth, as we have for the past 6 years. Our model has clearly been established while the demand for our products increases. We anticipate becoming cash flow positive in our over-the-counter products operating business in 2014, a key milestone".
"On the international front, our Mexican subsidiary is on track for another revenue record year in 2014.We have also made tremendous progress distributing and retailing our products throughout key retail chains in both Rio de Janeiro and Sao Paulo, Brazil's two largest cites. Brazil is the world's second biggest cosmetics markets, with Brazilian consumers spending the largest share of their cosmetics budgets on hair care products. We have found considerably fewer competing products than in other countries, providing us with a model for enormous success. We fully believe Brazil could be our largest market in the coming years".
"We marked a new milestone early in 2014 by signing a 5-year agreement with a Fortune 200 healthcare company to be the exclusive provider of a formulation and ingredients for use in their topical product. This agreement with a leader in the global healthcare market is a clear indication of the strength of our innovation and ability to provide leading companies with innovative technologies. We also moved our prescription hair loss development program forward by engaging Aptiv Solutions as our clinical research organization and, in conjunction with their team, we are now preparing to submit an Investigational New Drug application to the U.S. Food and Drug Administration. The prescription hair loss treatment market is in dire need of an effective product and we believe our proprietary formulations hold great promise," Khesin concluded.
Net revenues were $2,684,964 in the first quarter of 2014. Gross margin increased to 55% in the first quarter of 2014 from 45% in the same period a year ago, as a direct result of the Company's ongoing effort to reduce chemical, packaging and labor costs, while continuing to deliver effective and cutting edge products worldwide. Selling and marketing costs increased by 28% to $970,022 in the first quarter of 2014 from $756,998 in the same period last year. General and administrative costs decreased by 12% to $1,333,944 in the three months ended March 31, 2014, as compared to $1,508,675 in the same period of 2013, driven primarily by a 25% reduction in bad debt. DS Healthcare's net loss increased to $(850,0152) or $(0.05) per basic and diluted share in the first quarter of 2014 from $(462,115) or $(0.04) per basic and diluted share in the same period of 2013.
On March 31, 2014 the Company had cash and cash equivalents of $1,995,270 and working capital of $3,935,698. Total stockholders' equity on March 31, 2014 was $ 5,488,158, up 34% over the same period last year.
About DS Healthcare Group
DS Healthcare Group Inc. leads in the development of biotechnology for topical therapies. It markets through online and specialty retailers, distributors, cosmetics wholesalers, and salons. Its research has led to a highly innovative portfolio of personal care products and additional innovations in pharmaceutical projects. For more information on DS Healthcare Group's flagship brand, visit www.dslaboratories.com
Forward-looking statements
Except for statements of historical fact, the matters discussed in this press release are forward-looking and made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies, and are generally preceded by words such as "future," "plan" or "planned," "expects," or "projected." These forward-looking statements reflect numerous assumptions and involve a variety of risks and uncertainties, many of which are beyond the company's control that may cause actual results to differ materially from stated expectations. These risk factors include, among others, limited operating history, difficulty in developing and marketing products, intense competition, and additional risks factors as discussed in reports filed by the company with the Securities and Exchange Commission, which are available at http://www.sec.gov .
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