Mr. Richard Ransom reports

ICTV BRANDS REPORTS 3Q17 FINANCIAL RESULTS

ICTV Brands Inc. has released its financial results for the three months ended Sept. 30, 2017.

Third-quarter 2017 highlights:

• Delivered revenue of approximately $7.56-million, up 80 per cent compared with the prior-year quarter;
• Achieved positive adjusted earnings before interest, taxes, depreciation and amortization of $256,000, up 299 per cent compared with prior-year quarter;
• Total assets increased to approximately $17.2-million from approximately $4.5-million at Dec. 31, 2016, which includes approximately $7.5-million in inventory and approximately $960,000 in cash and equivalents.

Management commentary

Richard Ransom, president, stated: "During the third quarter, ICTV's two flagship brands were placed in several new brick-and-mortar retail stores, including Shopper's Drug Mart and expansion to over 300 additional Bed Bath & Beyond locations. This positions ICTV to maximize our sales during the prime retail season between Thanksgiving and New Year's Day. In addition to retail initiatives in North America, our team has been focused on expanding the international distribution platform in both South America and Asia. We believe that the work our team has done over the last several months positions ICTV well for substantial growth in 2018 and the year to come."

Reported financial results

Third quarter 2017 compared with third quarter 2016

Revenues for the three months ended Sept. 30, 2017, were approximately $7.56-million, compared with approximately $4.2-million for the three months ended Sept. 30, 2016. For the three months ended Sept. 30, 2017, the company generated approximately $4.5-million in gross profit, compared with approximately $3-million during the three months ended Sept. 30, 2016, as a result of the addition of the no!no!, Kyrobak and Cleartouch products acquired in January, 2017. Gross profit margin was 60 per cent in the third quarter 2017 compared with 72 per cent in the prior-year quarter. Total operating expenses increased to approximately $6.6-million from approximately $3.3-million during the third quarter of 2016, primarily related to the acquisition of the no!no! brand and other assets from PhotoMedex. The largest factor is an increase in Internet marketing expenditures. Internet marketing expenses increased to approximately $1.2-million for the three months ended Sept. 30, 2017, from approximately $299,000 during the three months ended Sept. 30, 2016. Media expenditures were approximately $1.3-million and $1.4-million for the three months ended Sept. 30, 2017, and 2016, respectively. In addition, payroll expenses increased to $565,000 during the three months ended Sept. 30, 2017, from $367,000 during the three months ended Sept. 30, 2016, as a result of additional employees from the PhotoMedex acquisition.

Net loss for the third quarter was approximately $387,000, compared with a net loss of approximately $262,000 in the prior-year quarter. The resulting earnings per share is one cent, as compared with one cent in the comparable quarter a year earlier. Adjusted earnings before interest, taxes, depreciation and amortization (adjusted EBITDA) was approximately $256,000 as compared with approximately $128,000.

Nine months ended Sept. 30, 2017, compared with nine months ended Sept. 30, 2016

Revenues for the nine months ended Sept. 30, 2017, were $23.2-million, increasing from $12.5-million in the prior-year period as a result of the addition of the no!no!, Kyrobak and Cleartouch products acquired in January, 2017. For the nine months ended Sept. 30, 2017, the company generated $15.2-million in gross margin, compared with approximately $8.8-million during the nine months ended Sept. 30, 2016, as a result of the addition of the no!no!, Kyrobak and Cleartouch products acquired in January, 2017. Gross margin percentage was approximately 65 per cent and 70 per cent for the nine months ended Sept. 30, 2017, and 2016. Total operating expenses increased to approximately $19-million from approximately $9.7-million during the third quarter of 2016. This increase in operating expenses relates primarily to the PhotoMedex acquisition. The biggest increase was Internet marketing expenditures. Internet marketing expenses increased to approximately $3.3-million for the nine months ended Sept. 30, 2017, from approximately $899,000 during the nine months ended Sept. 30, 2016. Media expenditures were approximately $4.2-million for the nine months ended Sept. 30, 2017, compared with $4-million for the nine months ended Sept. 30, 2016. In addition, payroll expenses increased to $2-million during the nine months ended Sept. 30, 2017, from $1.1-million during the nine months ended Sept. 30, 2016, as a result of additional employees from the PhotoMedex acquisition. Net loss was $2.2-million, compared with $951,000. EPS was four cents, as compared with three cents, and adjusted EBITDA was approximately $415,000 as compared with approximately $458,000.

Balance sheet as of Sept. 30, 2017

As of Sept. 30, 2017, the company had approximately $960,000 in cash and cash equivalents, and approximately $6.1-million in working capital compared with approximately $1.4-million and approximately $1.3-million as of Dec. 31, 2016, respectively. The company believes that its current cash will be sufficient to meet the anticipated cash needs for working capital for at least the next 12 months.

Conference call

ICTV will hold a conference call to discuss the company's third-quarter 2017 results and answer questions on Nov. 21, 2017, beginning at 10 a.m. EDT. The call will be open to the public, and will have a corporate update presented by ICTV's chairman and chief executive officer, Kelvin Claney, president, Richard Ransom, and chief financial officer, Ernest P. Kollias Jr., followed by a question-and-answer period. The live conference call can be accessed by dialling 866-831-8713 or 203-518-9713. Participants are recommended to dial in approximately 10 minutes prior to the start of the event. A replay of the call will be available approximately two hours after completion through Dec. 5, 2017. To listen to the replay, dial 800-934-7776 (domestic) or 402-220-6983 (international). The conference call transcript will be posted to the company's corporate website for those who are unable to attend the live call.

            CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS and COMPREHENSIVE LOSS 
                                                                                    
                                 For the three months ended       For the six months ended
                                                   Sept. 30                       Sept. 30
                                       2017            2016            2017           2016  
                                                                                   
Net sales                    $    7,559,754   $   4,203,530   $  23,156,949  $  12,471,266
Cost of sales                     3,049,989       1,158,998       7,995,170      3,698,764
Gross profit                      4,509,765       3,044,532      15,161,779      8,772,502
Operating expenses
General and administrative        2,448,376       1,035,752       7,643,917      3,076,489
Selling and marketing             4,102,346       2,267,103      11,346,321      6,636,950
Total operating expenses          6,590,722       3,302,855      18,990,238      9,713,439
Operating (loss)                 (2,080,957)       (258,323)     (3,828,459)      (940,937)
Interest expense, net              (164,377)         (3,274)       (215,147)       (10,511)
Gain on settlement                1,969,245               -       1,969,245              -
Miscellaneous income (loss)            (130)              -          59,974              -
(Loss) before provision
for income tax                     (274,581)       (261,597)     (2,012,879)      (951,448)
Provision for income taxes          112,277               -         182,277              -
Net (loss)                   $     (386,858)  $    (261,597)  $  (2,195,156)  $   (951,448)
Other comprehensive income
Foreign currency
translation adjustment              112,223               -         208,924              -
Comprehensive (loss)         $     (274,635)  $    (261,597)  $  (1,986,232)  $   (951,448)
Net (loss) per share
Basic                        $        (0.01)  $       (0.01)  $       (0.04)  $      (0.03)
Diluted                      $        (0.01)  $       (0.01)  $       (0.04)  $      (0.03)

About ICTV Brands Inc.

ICTV Brands sells primarily health, beauty and wellness products as well as various consumer products through a multichannel distribution strategy.

We seek Safe Harbor.