News Feed Item

Her Imports Reports Record Revenue and Net Income for the 2017 First Quarter

LAS VEGAS, NV -- (Marketwired) -- 06/19/17 -- Her Imports (OTCQB: HHER), a leading retailer of human hair extensions and related beauty products, today reported its financial results for the first quarter ended March 31, 2017 during which the Company generated record revenue of $4.4 million, income from operations of $648,329 and net income attributable to the Company of $418,899 before preferred dividends of $180,000.

Barry Hall, Chief Executive Officer of Her Imports, commented, "During the first quarter of 2017 we experienced growth in our retail footprint while maintaining a strong financial position which yielded year-over-year revenue growth as well as positive net income and cash flow. Today our revenue streams include 32 retail locations, three shopping mall kiosks and a newly designed Website supported by our proprietary e-commerce platform. Retail revenue, year-over-year, increased 10.6%. Finally, we remain on track to achieve our goal of operating 100 retail locations throughout the United States by the end of 2019."

Mr. Hall continued, "We are also proud to be a product innovator in the hair and beauty industry. Our revolutionary product, Cling™, an improved adhesive for hair extensions, wigs and false eyelashes, is generating notable interest among our customer base and target customers. We continue to focus on expanding our product offerings to provide our customers with a one-stop-shop for their beauty needs."

2017 First Quarter Business Highlights:

  • Ended the first quarter with 35 retail locations throughout the United States
  • Announced an exclusive agreement with OSIworks to market and sell new health and beauty products including Cling, an improved adhesive for hair extensions and wigs
  • Launched new point-of-sale through three kiosks in highly trafficked shopping locations; utilizing the kiosks as a low-cost leading indicator of the future market opportunity as well as an additional method of acquiring a customer
  • Expanded the management team with the strategic hire of renowned celebrity hair stylist Tippi Shorter as Vice President, Product Development & Marketing

2017 First Quarter Financial Highlights:
Revenue totaled $4.4 million for the first quarter 2017, as compared to $4.2 million, an increase of 4.5%, for the first quarter 2016. The year-over-year increase of 10.6% in retail revenue was primarily due to new retail locations opened in the fourth quarter 2016 and first quarter 2017. This increase was partially off-set by a decrease in online sales due to the discontinuation of financing sales due to customer.

Cost of products sold for the three months ended March 31, 2017 were $2.1 million, an increase of 1.9% as compared to cost of products sold of $2.1 million for the three months ended March 31, 2016. Gross margin was 51% for the first quarter 2017, as compared with 50% for the first quarter 2016.

Operating expenses consist of selling expense and general and administrative expense. Total operating expenses for the three months ended March 31, 2017 was $1.6 million, representing a 14.6% or $270,501 decrease from $1.8 million for the three months ended March 31, 2016 which included royalties of $381,994 which the Company no longer pays. The absence of royalty expense was partially offset by an increase in both selling expense and general and administrative expense. Selling expense for the three months ended March 31, 2017 increased $18,433 or 1.5% for the three months ended March 31, 2017 when compared to the same 2016 period. The increase in selling expense was attributable to an increase in store operating expenses due to the addition of new retail location and was offset by a decrease in advertising expense.

The above resulted in income from operations of $648,329 for the three months ended March 31, 2017 compared to an income from operations of $229,286 for the three months ended March 31, 2016.

Net income attributable to the Company totaled $417,899 during the first quarter of 2017 as compared to $141,343 for the same period the prior year. Net income available to common shareholders totaled $237,899, or 0.01 per share, for the first quarter 2017, compared with net income of $141,383, or 0.01 per share, for the first quarter 2016. The Company paid $180,000 in preferred stock dividends during the three months ended March 31, 2017.

Net cash provided by operating activities totaled $232,466 for the first quarter of 2017 as compared to $43,313 for the same period the prior year.

About Her Imports:
Her Imports sells human hair extensions and related hair-care and beauty products at retail locations throughout the U.S. and on our Website, www.herimports.com. Additionally, by way of our proprietary ecommerce platform and strategic leveraging of social media buys, we convert prospects into customers while developing long-term personal relationships and loyal customers.

Forward Looking Statements:
Statements in this document contain certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on many assumptions and estimates and are not guarantees of future performance. These statements may involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Her Imports to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements. Her Imports assumes no obligation to update any forward-looking statements as a result of new information, future events or developments, except as required by applicable securities laws. For more information, please refer to Her Imports' financial statements as filed with the Securities and Exchange Commission.

                                 Her Imports
                    Condensed Consolidated Balance Sheets

                                                 March 31,     December 31,
                                                    2017           2016
                                               -------------  -------------

Current assets
  Cash                                         $     346,921  $     355,568
  Receivables                                        137,156         45,576
  Related Party receivable                            94,521         26,612
  Inventories                                      2,258,703      2,047,453
  Prepaid maintenance fees - current                  75,000         75,000
  Other prepaid expenses                              83,489         46,411
  Deposits                                           356,179         32,950
                                               -------------  -------------
Total current assets                               3,351,969      2,629,570

Property, equipment and software, net                251,004        256,525
  Prepaid maintenance fees - non current             265,625        284,375
  Other Asset                                         25,000              -
  Trademark                                        8,200,000      8,200,000
                                               -------------  -------------
Total assets                                   $  12,093,598  $  11,370,470
                                               =============  =============


Current liabilities
  Accounts payable and accrued liabilities     $     998,248  $     728,425
  Income tax liability                               357,263        127,651
  Notes payable                                       29,599         43,805
                                               -------------  -------------
Total current liabilities                          1,385,110        899,881
                                               -------------  -------------

Total liabilities                                  1,385,110        899,881

Stockholders' equity
  Callable $0.072 per share per year non-
   cumulative dividend liquidation preference
   of $1.00 per share, preferred stock, $0.001
   par value, 10,000,000 shares authorized and
   outstanding as of March 31, and December
   31, 2016, respectively                             10,000         10,000
  Common stock, $0.001 par value, 65,000,000
   shares authorized and 24,899,788 shares
   issued and outstanding as of March 31, 2017
   and December 31, 2016, respectively                24,900         24,900
  Additional paid-in capital                      26,625,497     26,625,497
  Accumulated deficit                            (15,951,909)   (16,189,808)
                                               -------------  -------------
Total stockholders' equity                        10,708,488     10,470,589
                                               -------------  -------------
Total liabilities and stockholders' equity     $  12,093,598  $  11,370,470
                                               =============  =============

                                 Her Imports
                 Condensed Consolidated Statements of Income

                                                   For the Three Months
                                                         March 31,
                                                    2017           2016
                                               -------------  -------------
Product sales                                  $   4,361,020  $   4,172,312
Cost of products sold                              2,135,064      2,094,898
                                               -------------  -------------
Gross profit                                       2,225,956      2,077,414

Operating expenses
  Royalties                                                -        381,994
  Selling expense                                  1,264,781      1,246,348
  General and administrative expense                 312,846        219,786
                                               -------------  -------------
Total operating expenses                           1,577,627      1,848,128

Income from operations                               648,329        229,286

Other (expense) income
  Interest income                                         49              -
  Interest expense                                      (866)          (317)
                                               -------------  -------------
Total other (expense) income                            (817)          (317)
                                               -------------  -------------
Income before provision for income taxes             647,512        228,969

  Provision for income taxes                        (229,613)       (87,626)
                                               -------------  -------------
Net income attributable to Company                   417,899        141,343
Preferred stock dividends                           (180,000)             -
                                               -------------  -------------
Net income available to common stockholders    $     237,899  $     141,343
                                               =============  =============

  Net basic income per share attributable to
   common Stockholders: basic and diluted      $        0.01  $        0.01
                                               =============  =============

  Weighted average number of common shares
   outstanding: basic and diluted                 24,899,788     16,299,788
                                               =============  =============

                                 Her Imports
               Condensed Consolidated Statements of Cash Flows

                                                 For the Three Month Ended
                                                         March 31,
                                                    2017           2016
                                               -------------  -------------
  Net income                                   $     417,899  $     141,343
    Adjustments to reconcile net income to net
     cash provided by operating activities:
      Depreciation and amortization                   27,428        310,090
  Changes in operating assets and liabilities:
      Receivables                                    (91,580)       (16,486)
      Related party receivables                      (67,909)      (256,205)
      Inventories                                   (211,250)      (115,830)
      Prepaid maintenance fees                        18,750         18,750
      Other prepaid expenses                         (37,078)        17,014
      Deposits                                      (323,229)      (288,536)
      Accounts payable and accrued liabilities       269,823        145,547
      Income tax liability                           229,612         87,626
                                               -------------  -------------
Net cash provided by operating activities            232,466         43,313

      Purchase of fixed assets                       (21,907)        (7,685)
      Investment in subsidiary                       (25,000)             -
                                               -------------  -------------
Net cash used in investing activities                (46,907)        (7,685)

      Repayment on notes payable                     (14,206)        (7,183)
      Cash paid for preferred stock dividends       (180,000)             -
                                               -------------  -------------
Net cash used in financing activities               (194,206)        (7,183)

NET (DECREASE) INCREASE IN CASH                       (8,647)        28,445

  CASH - BEGINNING OF PERIOD                         355,568        449,675
                                               -------------  -------------
  CASH - END OF PERIOD                         $     346,921  $     478,120
                                               =============  =============

      Interest paid                            $         944  $         317
                                               =============  =============
      Income taxes paid                        $           -  $           -
                                               =============  =============

Investor Contact:
Valter Pinto / Allison Soss
KCSA Strategic Communications
Phone: (212) 896-1254 / (212) 896-1267
Email: Email Contact / Email Contact

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
"I focus on what we are calling CAST Highlight, which is our SaaS application portfolio analysis tool. It is an extremely lightweight tool that can integrate with pretty much any build process right now," explained Andrew Siegmund, Application Migration Specialist for CAST, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
SYS-CON Events announced today that Evatronix will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place on Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. Evatronix SA offers comprehensive solutions in the design and implementation of electronic systems, in CAD / CAM deployment, and also is a designer and manufacturer of advanced 3D scanners for professional applications.
SYS-CON Events announced today that Synametrics Technologies will exhibit at SYS-CON's 22nd International Cloud Expo®, which will take place on June 5-7, 2018, at the Javits Center in New York, NY. Synametrics Technologies is a privately held company based in Plainsboro, New Jersey that has been providing solutions for the developer community since 1997. Based on the success of its initial product offerings such as WinSQL, Xeams, SynaMan and Syncrify, Synametrics continues to create and hone inn...
As many know, the first generation of Cloud Management Platform (CMP) solutions were designed for managing virtual infrastructure (IaaS) and traditional applications. But that's no longer enough to satisfy evolving and complex business requirements. In his session at 21st Cloud Expo, Scott Davis, Embotics CTO, explored how next-generation CMPs ensure organizations can manage cloud-native and microservice-based application architectures, while also facilitating agile DevOps methodology. He expla...
To get the most out of their data, successful companies are not focusing on queries and data lakes, they are actively integrating analytics into their operations with a data-first application development approach. Real-time adjustments to improve revenues, reduce costs, or mitigate risk rely on applications that minimize latency on a variety of data sources. In his session at @BigDataExpo, Jack Norris, Senior Vice President, Data and Applications at MapR Technologies, reviewed best practices to ...
"Evatronix provides design services to companies that need to integrate the IoT technology in their products but they don't necessarily have the expertise, knowledge and design team to do so," explained Adam Morawiec, VP of Business Development at Evatronix, in this SYS-CON.tv interview at @ThingsExpo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
DevOps promotes continuous improvement through a culture of collaboration. But in real terms, how do you: Integrate activities across diverse teams and services? Make objective decisions with system-wide visibility? Use feedback loops to enable learning and improvement? With technology insights and real-world examples, in his general session at @DevOpsSummit, at 21st Cloud Expo, Andi Mann, Chief Technology Advocate at Splunk, explored how leading organizations use data-driven DevOps to close th...
"WineSOFT is a software company making proxy server software, which is widely used in the telecommunication industry or the content delivery networks or e-commerce," explained Jonathan Ahn, COO of WineSOFT, in this SYS-CON.tv interview at 21st Cloud Expo, held Oct 31 – Nov 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA.
Digital Transformation (DX) is not a "one-size-fits all" strategy. Each organization needs to develop its own unique, long-term DX plan. It must do so by realizing that we now live in a data-driven age, and that technologies such as Cloud Computing, Big Data, the IoT, Cognitive Computing, and Blockchain are only tools. In her general session at 21st Cloud Expo, Rebecca Wanta explained how the strategy must focus on DX and include a commitment from top management to create great IT jobs, monitor ...
In his Opening Keynote at 21st Cloud Expo, John Considine, General Manager of IBM Cloud Infrastructure, led attendees through the exciting evolution of the cloud. He looked at this major disruption from the perspective of technology, business models, and what this means for enterprises of all sizes. John Considine is General Manager of Cloud Infrastructure Services at IBM. In that role he is responsible for leading IBM’s public cloud infrastructure including strategy, development, and offering m...
Recently, WebRTC has a lot of eyes from market. The use cases of WebRTC are expanding - video chat, online education, online health care etc. Not only for human-to-human communication, but also IoT use cases such as machine to human use cases can be seen recently. One of the typical use-case is remote camera monitoring. With WebRTC, people can have interoperability and flexibility for deploying monitoring service. However, the benefit of WebRTC for IoT is not only its convenience and interopera...
No hype cycles or predictions of a gazillion things here. IoT is here. You get it. You know your business and have great ideas for a business transformation strategy. What comes next? Time to make it happen. In his session at @ThingsExpo, Jay Mason, an Associate Partner of Analytics, IoT & Cybersecurity at M&S Consulting, presented a step-by-step plan to develop your technology implementation strategy. He also discussed the evaluation of communication standards and IoT messaging protocols, data...
In a recent survey, Sumo Logic surveyed 1,500 customers who employ cloud services such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud Platform (GCP). According to the survey, a quarter of the respondents have already deployed Docker containers and nearly as many (23 percent) are employing the AWS Lambda serverless computing framework. It’s clear: serverless is here to stay. The adoption does come with some needed changes, within both application development and operations. Tha...
Product connectivity goes hand and hand these days with increased use of personal data. New IoT devices are becoming more personalized than ever before. In his session at 22nd Cloud Expo | DXWorld Expo, Nicolas Fierro, CEO of MIMIR Blockchain Solutions, will discuss how in order to protect your data and privacy, IoT applications need to embrace Blockchain technology for a new level of product security never before seen - or needed.
Recently, REAN Cloud built a digital concierge for a North Carolina hospital that had observed that most patient call button questions were repetitive. In addition, the paper-based process used to measure patient health metrics was laborious, not in real-time and sometimes error-prone. In their session at 21st Cloud Expo, Sean Finnerty, Executive Director, Practice Lead, Health Care & Life Science at REAN Cloud, and Dr. S.P.T. Krishnan, Principal Architect at REAN Cloud, discussed how they built...