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Divine Skin Announces Records for Full-Year 2011


April 4, 2012 - MIAMI BEACH, FL

Divine Skin Inc. (OTCBB: DSKX), which formulates, develops, and markets new personal-care products, announced full-year 2011 results. Compared to 2010, highlights of the year-end earnings report include:

-- Net revenue increased to $9.7 million, up $4.2 million.
-- Cash balance increased to $1.3 million, up $1.1 million.
-- Inventory increased to $2.0 million, up $900,000.
-- Shareholders' equity increased to $5.0 million, up $2.6 million.
-- Assets increased to $6.2 million, up $3.1 million.

During the year, the company added several new distributors in the United States and around the world.

Divine Skin CEO Daniel Khesin stated, "While Divine Skin set several new records in 2011, today's announcement is just an indication of what's to come. We believe the demand for our innovative brands and products will continue to accelerate. With this increased demand, we believe we will continue to add significant value for our shareholders.

"Our hair-stimulating products have entered the daily routines of hundreds of thousands of customers," Khesin continued. "Recent clinical studies have shown that our topical treatments are achieving nearly 100 percent response during early-stage hair loss, which makes a big difference in the lives of many users."

Financial position

Net revenue increased to $9,672,861 for 2011, up $4,228,056 or 77 percent from the $5,444,804 of the previous year.

Assets increased to $6,103,992, as of December 31, 2011, up $3,160,132 or 107 percent from the $2,943,860 of the previous year.

Inventory levels increased to $2,174,784 as of December 31, 2011, up $993,105 or 84 percent from the $1,181,679 of the previous year.

Accounts receivable increased to $1,888,453 as of December 31, 2011, up $1,150,499 or 155 percent from the $737,954 of the previous year.

Working capital reached $4,306,774 as of December 31, 2011.

Net loss reached $980,892 for 2011, up $831,079 or 531 percent from the loss of $149,813 a year earlier.

About Divine Skin

Divine Skin Inc. leads in the development of biotechnology for topical, nutritional, and pharmaceutical therapies. It markets worldwide through online and specialty retailers, cosmetics wholesalers, salons, and medical offices. The fast-growing company went public in 2009.

DS Laboratories, its flagship brand, offers high-performance topical solutions to restore growth and radiance to hair, suppress dandruff and unwanted hair, control acne, improve hygiene, and reduce cellulite and wrinkles. Bioavailability is enhanced through Nanosome encapsulation (www.dslaboratories.com).

The Sigma Skin brand sells through upscale retailers like Neiman Marcus in the United States and Harvey Nichols in the United Kingdom. The topical products address hair loss and other signs of aging (www.sigmaskin.com).

Polaris Research Laboratories makes high-potency minoxidil-based hair-growth formulas (www.polarisresearchlabs.com).

The Pure Guild offers purity with performance: Botanical compounds proven effective in clinical trials are extracted without industrial solvents or damaging heat and are sold through premium retailers (www.thepureguild.com).

Safe harbor: This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 (the "Act"). Additionally, words such as "seek," "intend," "believe," "plan," "estimate," "expect," "anticipate," and other similar expressions are forward-looking statements. Some or all of the events or results anticipated by these forward-looking statements may not occur. Factors that could cause or contribute to such differences include the impact of competition, future economic conditions, the acceptance of our current and future products in US and overseas markets, and regulatory issues, if any. Such statements are also based upon management's current expectations and the results of current market and operating conditions, and they relate to events that involve known or unknown risks, uncertainties, and other factors. All of these factors are difficult to predict and many are beyond the company's control, which may cause the company's actual results, performance, or achievements to differ materially from those in the forward-looking statements. Further information regarding these and other risks, uncertainties, or factors is included in the company's filings with the US Securities and Exchange Commission. Divine Skin does not undertake any duty nor does it intend to update the results of these forward-looking statements.



Divine Skin, Inc. (dba DS Laboratories) and Subsidiaries
Consolidated Balance Sheets

December 31, December 31,
2011 2010
------------- -------------
ASSETS

Current Assets
Cash $ 1,284,343 $ 146,405
Accounts receivable, net 1,888,453 737,954
Inventory 2,174,784 1,181,680
Prepaid expenses and other current assets 57,940 110,601
------------- -------------

Total Current Assets 5,405,520 2,176,640

Furniture and Equipment, net 53,017 18,861
Intangible Assets, net 630,317 730,916
Other Assets 15,138 17,443
------------- -------------

TOTAL ASSETS $ 6,103,992 $ 2,943,860
============= =============

LIABILITIES AND EQUITY

Current Liabilities
Accounts payable and accrued expenses $ 1,021,313 $ 604,311
Other current liabilities 77,433 21,162
------------- -------------

TOTAL LIABILITIES 1,098,746 625,473
------------- -------------

COMMITMENTS AND CONTINGENCIES

Equity
Preferred stock, $0.001 par value, 30
million shares authorized: 10 million
shares issued and outstanding at December
31, 2011 and December 31, 2010,
respectively 10,000 10,000
Common stock, $0.001 par value, 300 million
shares authorized: 105,029,613 and
94,961,001 shares issued and outstanding at
December 31, 2011 and December 31, 2010,
respectively 105,030 94,961
Additional paid-in-capital 6,512,141 2,824,459
Stock subscription (100,000) (70,000)
Accumulated deficit (1,506,893) (528,293)
------------- -------------

Total Shareholders' Equity 5,020,278 2,331,127
Non-Controlling Interest (15,032) (12,740)
------------- -------------

Total Equity 5,005,246 2,318,387
------------- -------------

TOTAL LIABILITIES AND EQUITY $ 6,103,992 $ 2,943,860
============= =============




Divine Skin, Inc. (dba DS Laboratories) and Subsidiaries
Consolidated Statements of Operations
For the Years Ended December 31, 2011 and 2010

Year Ended
December 31,
----------------------------
2011 2010
------------- -------------

Revenue:
Product sales $ 10,368,735 $ 5,401,957
Consulting and other income - 91,750
Less returns and allowances (695,874) (48,902)
------------- -------------

Net revenue 9,672,861 5,444,805

Cost of Goods Sold 4,751,961 1,883,160
------------- -------------

Gross Profit 4,920,900 3,561,645
------------- -------------

Operating Costs and Expenses:
Selling and marketing 2,856,482 1,626,675
General and administrative 3,057,988 2,123,670
------------- -------------

Total operating costs and expenses 5,914,470 3,750,345
------------- -------------

Operating Income (Loss) (993,570) (188,700)
------------- -------------

Other Income (Expense)
Interest income 454 -
Other 12,224 38,887
------------- -------------

Total other income (expense) 12,678 38,887
------------- -------------

Net Loss (980,892) (149,813)

Net Loss Attributable to Non-Controlling
Interest 2,292 12,740
------------- -------------

Net Loss Attributable to Shareholders of
Divine Skin, Inc. $ (978,600) $ (137,073)
============= =============

Basic and Diluted Earnings per Share:
Weighted average shares 100,611,200 92,668,273
============= =============
Earnings per share $ (0.01) $ (0.00)
============= =============




Divine Skin, Inc. (dba DS Laboratories) and Subsidiaries
Consolidated Statements of Cash Flows
For the Years Ended December 31, 2011 and 2010

Year Ended
December 31,
----------------------------
2011 2010
------------- -------------

Cash Flows from Operating Activities:
Net Loss $ (980,892) $ (149,813)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization 200,722 118,178
Bad debts 41,032 28,546
Product return and advertising reserve 112,400 --
Stock issued for services 116,847 21,500
Warrants issued for financial services 134,244 133,600
Warrants vested for services 192,000 162,071
Changes in operating assets and liabilities:
Accounts receivable (1,304,183) (77,015)
Inventory (993,105) (463,572)
Prepaid expenses and other current assets (5,644) (32,549)
Accounts payable and accrued expenses 417,003 (340,589)
Other current liabilities 56,270 7,768
------------- -------------
Net cash used in operating activities (2,013,053) (591,875)
------------- -------------

Cash Flows from Investing Activities:
Purchase of furniture and equipment (50,945) -
Purchase brand identity and supplier
exclusive agreement - (106,666)
Security deposits 2,305 (9,403)
------------- -------------
Net cash used in investing activities (48,640) (116,069)
------------- -------------

Cash Flows from Financing Activities:
Proceeds from sale of stock to others 2,069,500 844,500
Less Issuance costs (459,769) (249,600)
Proceeds from sale of stock under SPA 1,730,000 -
Less Issuance costs (140,100) -
------------- -------------
Net cash provided by financing
activities 3,199,631 594,900
------------- -------------


Increase (Decrease) in cash 1,137,938 (113,044)
Cash, Beginning of Year 146,405 259,449
------------- -------------

Cash, End of Year $ 1,284,343 $ 146,405
============= =============

Supplemental Information:
Cash paid for interest $ - $ -
============= =============
Cash paid for taxes $ - $ -
============= =============

Non-cash Items:
Issuance cost paid in warrants $ 24,670 $ -
============= =============


Contact:

Abner Silva
Investor Relations
Divine Skin Inc.
1.407.342.4112
investors@divineskin.com

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