The Stephan Co. (OTC:SPCO)

The Stephan Co. (OTC:SPCO) a leader in providing quality professional barber products, announced Q3 2023 results:

• Sales of $2.7 million vs $2.6 million 
• EPS of $0.01 vs EPS of $0.01

“To improve our focus on these operational initiatives, we will shift our capital allocation priorities back to the basics of building cash, selectively reducing debt, and when appropriate paying out cash to shareholders. Once we have achieved our operational goals, we expect to restart our acquisition program, but with a renewed emphasis on more optimal and efficient integration of new purchases.” 

The Stephan Co. (OTC:SPCO) a leader in providing quality professional barber products, announced Q4 2022 results:

• Sales of $2.6 million vs $2.4 million 

• Loss of $0.07 vs loss of $0.01

"The Stephan Co is excited to continue on our strategy of building market share through acquisition and organic growth," said Benjamin Large, Chief Executive Officer.

The Stephan Co. (OTC:SPCO) a leader in providing quality professional barber products, announced Q3 2022 results:

• Sales of $2.6 million vs $2.3 million 

• EPS of $0.01 vs EPS of $0.05

“We continue to seek attractively priced acquisitions of barber brands and distributors and our pipeline of new deals is keeping us busy. As always, we will remain financially disciplined, but when the time comes for a deal, we will move quickly to acquire and integrate brands and distributors that allow us to add new customers and to scale our business while adding incremental cash flow to grow value per share.

We continue to grow the business given the attractive incremental returns we are enjoying from acquisitions like 614 Barber Supply and Appleton. This strategy also allows us to maximize the use of our substantial federal tax assets. Labor remains a key challenge for the company given the inflationary wage pressures and the tight supply of labor in our markets. We continue to seek to fill open positions and acquisitions can be an excellent way to acquire talented team members.”

Legal issue we need to look into:

“The Company has been named in more than 100 lawsuits related to talc products it previously manufactured, usually as a contract manufacturer for larger brands. In each case, the Company is one of a large number of defendants named. We have made some progress on our legal exposure and SPCO has been dismissed from some cases. There still remain many lawsuits and we will continue to work to reduce our exposure over time. The Company cannot currently estimate the cost of defending itself in these potential lawsuits or the potential legal liability. The Company will vigorously defend itself and believes the cases are without merit. While the expenses to defend the Company could be material, we cannot predict the outcome of this or any other legal contingency and our insurance carriers have agreed to fund a significant portion of our current expenses.”