EX-99.1 2 astv_ex99z1.htm PRESS RELEASE Press Release

EXHIBIT 99.1


As Seen On TV, Inc. Reports Record Third Quarter Revenues


Fiscal 2012 Third Quarter Revenues Increase 124% to $5.8 Million With Gross Margins of 52%; Current Assets Increase to $13.08 Million


CLEARWATER, FL--(Marketwire - Feb 22, 2013) - As Seen On TV, Inc. ( OTCQB : ASTV ), the parent company of TV Goods, Inc., a direct response marketing company, is pleased to report that it has filed its 10-Q for its third quarter, ended December 31, 2012. The results demonstrate the Company's commercialization ramp as the company continues to execute on its growth strategy. The Company believes it has successfully developed a platform and is monetizing unique products through a variety of direct-to-consumer channels including direct response television, television shopping networks, retail outlets, and e-commerce marketplaces.


For the third quarter of the fiscal year 2012, revenues reached a record $5.8 million, a 124 percent increase from $2.6 million in the third quarter of fiscal year 2011. Gross profit margin of 52 percent was realized in the third quarter, up from 46 percent a year earlier. The loss from operations for the third quarter decreased to $906,820 in the third quarter of fiscal year 2012 from $1.9 million in the third quarter of fiscal year 2011. The decrease in loss from operations was primarily due to the introduction and ramp up of media spending on product lines. Due principally to the non-cash warrant revaluation expense of $13.5 million, the Company's net income for the third quarter decreased to a $15.1 million loss, from a gain of $2.25 million in the third quarter of fiscal 2011. The resulting loss per share was ($0.38), as compared to a $0.09 gain a year earlier.


For the first nine months of fiscal year 2012 ended December 31, 2012, revenues were $6.9 million, a 105 percent increase from $3.4 million in the first nine months of fiscal year 2011. Gross profit margin of 44 percent was realized in the first nine months ended December 31, 2012, up from 43 percent a year earlier. The loss from operations for the first nine months of $3.4 million was basically the same as the loss for the first nine months of fiscal 2011. The net loss for the first nine months increased to $13.7 million from a loss of $10.2 million in the third quarter of fiscal 2011. The increase in the net loss was principally attributed to a non-cash warrant revaluation of $8.7 million. The loss per share was ($.39), as compared to ($.62) a year earlier.


The past few months have been very active for As Seen On TV, Inc. as it has taken the necessary steps to attract significant capital and implement its growth strategy. The Company believes all these steps have positioned it to succeed over the upcoming years. The Company has broadened its ability to identify, advise in development and market consumer products. Pipelines for new products continue to strengthen, as the Company is continually sought after for product development and television marketing partnerships.


As previously announced, on October 31, 2012, the Company entered into an Agreement and Plan of Merger to acquire eDiets.com, Inc. in a stock for stock transaction. The terms of the Agreement provide for the issuance of 19,077,252 shares of As Seen On TV common stock in exchange for 100% of the outstanding shares. The closing of the transaction is subject to a number of conditions and continues to progress accordingly. The eDiets shareholder meeting called to approve the merger is scheduled for February 27, 2013.




Statement of Operations:


 

 

AS SEEN ON TV, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS

 

(UNAUDITED)

 

 

 

 

 

Three Months Ended
December 31,

 

 

Nine Months Ended
December 31,

 

 

 

2012

 

 

2011

 

 

2012

 

 

2011

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$

5,834,246

 

 

$

2,606,034

 

 

$

6,872,201

 

 

$

3,350,417

 

 

Cost of revenues

 

 

2,787,711

 

 

 

1,409,310

 

 

 

3,821,018

 

 

 

1,917,947

 

 

 

 

3,046,535

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

 

 

8,621,957

 

 

 

1,196,724

 

 

 

3,051,183

 

 

 

1,432,470

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling and marketing expenses

 

 

2,334,379

 

 

 

1,762,583

 

 

 

2,534,239

 

 

 

1,941,886

 

 

General and administrative expenses

 

 

1,618,976

 

 

 

1,367,264

 

 

 

3,884,910

 

 

 

3,167,795

 

Loss from operations

 

 

(906,820

)

 

 

(1,933,123

)

 

 

(3,367,966

)

 

 

(3,677,211

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other (income) expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Warrant revaluation

 

 

13,473,948

 

 

 

(5,977,192

)

 

 

8,790,512

 

 

 

(411,421

)

 

Loss of extinguishment of debt

 

 

—

 

 

 

—

 

 

 

—

 

 

 

2,950,513

 

 

Revaluation of derivative liability

 

 

—

 

 

 

—

 

 

 

—

 

 

 

(209,351

)

 

Other (income) expense

 

 

(36,450

)

 

 

(8,039

)

 

 

(40,084

)

 

 

(9,465

)

 

Interest expense

 

 

799,272

 

 

 

1,806,014

 

 

 

1,586,499

 

 

 

4,180,688

 

 

Interest expense - related party

 

 

—

 

 

 

1,070

 

 

 

—

 

 

 

23,271

 

 

 

 

14,236,770

 

 

 

(4,178,147

)

 

 

10,336,927

 

 

 

6,524,235

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) before income taxes

 

 

(15,143,590

)

 

 

2,245,024

 

 

 

(13,704,893

)

 

 

(10,201,446

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(15,143,590

)

 

$

2,245,024

 

 

$

(13,704,893

)

 

$

(10,201,446

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income /(loss) per common share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.38

)

 

$

0.09

 

 

$

(0.39

)

 

$

(0.62

)

 

Diluted

 

$

(0.38

)

 

$

0.08

 

 

$

(0.39

)

 

$

(0.62

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average number of common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

39,806,991

 

 

 

26,179,515

 

 

 

34,739,260

 

 

 

16,358,756

 

 

Diluted

 

 

39,806,991

 

 

 

28,707,965

 

 

 

34,739,260

 

 

 

16,358,756

 





Balance Sheet:


AS SEEN ON TV, INC. AND SUBSIDIARIES

 

CONDENSED CONSOLIDATED BALANCE SHEETS

 

 

 

 

 

December 31,
2012

 

 

March 31,
2012

 

 

 

(Unaudited)

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

4,162,068

 

 

$

4,683,186

 

 

Accounts receivable, net

 

 

3,434,267

 

 

 

2,055,162

 

 

Interest Receivable

 

 

35,500

 

 

 

—

 

 

Advances on inventory purchases

 

 

336,322

 

 

 

304,702

 

 

Inventories

 

 

2,444,449

 

 

 

1,561,314

 

 

Note receivable

 

 

2,000,000

 

 

 

—

 

 

Prepaid expenses and other current assets

 

 

669,898

 

 

 

262,163

 

Total current assets

 

 

13,082,504

 

 

 

8,866,527

 

 

 

 

 

 

 

 

 

 

 

Certificate of deposit -- non current

 

 

50,382

 

 

 

50,000

 

 

Property, plant and equipment, net

 

 

105,437

 

 

 

140,000

 

 

Intangible assets

 

 

2,839,216

 

 

 

—

 

 

Deposit on asset acquisition

 

 

—

 

 

 

729,450

 

 

Other non-current assets

 

 

2,185

 

 

 

—

 

Total Assets

 

$

16,079,724

 

 

$

9,785,977

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIENCY)

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,072,345

 

 

$

433,591

 

 

Deferred revenue

 

 

6,000

 

 

 

33,750

 

 

Accrued registration rights penalty

 

 

156,000

 

 

 

156,000

 

 

Accrued expenses and other current liabilities

 

 

787,334

 

 

 

601,695

 

 

Notes payable -- current portion

 

 

66,436

 

 

 

28,737

 

 

Warrant liability

 

 

34,232,702

 

 

 

25,797,615

 

Total current liabilities

 

 

36,320,817

 

 

 

27,051,388

 

 

 

 

 

 

 

 

 

 

Other liabilities -- non current

 

 

40,000

 

 

 

—

 

 

 

 

 

 

 

 

 

 

Total liabilities

 

 

36,360,817

 

 

 

27,051,388

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stockholders' equity (deficiency):

 

 

 

 

 

 

 

 

 

Preferred stock, $.0001 par value; 10,000,000 shares authorized; no shares issued and outstanding at December 31, 2012 and March 31, 2012, respectively.

 

 

—

 

 

 

—

 

 

Common stock, $.0001 par value; 750,000,000 shares authorized and 50,806,385 and 31,970,784 issued and outstanding at December 31, 2012 and March 31, 2012, respectively.

 

 

5,081

 

 

 

3,197

 

 

Additional paid-in capital

 

 

10,687,327

 

 

 

—

 

 

Accumulated deficit

 

 

(30,973,501

)

 

 

(17,268,608

)

Total stockholders' equity (deficiency)

 

 

(20,281,093

)

 

 

(17,265,411

)

 

 

 

 

 

 

 

 

 

Total liabilities and stockholders' equity (deficiency)

 

$

16,079,724

 

 

$

9,785,977

 




About As Seen On TV, Inc.
As Seen On TV, Inc. is the parent company of TVGoods, Inc., a direct response marketing company. We identify, develop and market consumer products for global distribution via TV, Internet and retail channels. TVGoods was established by Kevin Harrington, a pioneer of direct response television. For more information go to www.TVGoodsInc.com and www.AsSeenOnTV.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 identifying 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


Contact:


Contact Information:
Jeff Ramson
ProActive Capital Group
641 Lexington Avenue, 6th Floor
New York, NY 10022
646-863-6341

www.proactivecapitalgroup.com