SOURCE: As Seen On TV, Inc.

February 22, 2013 08:00 ET

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 commonshares 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 sharesauthorized; no shares issued and outstanding at December 31, 2012 and March 31, 2012, respectively.     --       --  
  Common stock, $.0001 par value; 750,000,000 shares authorizedand 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 Information

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