FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended August 31, 1995
Commission File Number 2-85538
CCA INDUSTRIES, INC.
(Exact Name of Registrant as Specified in its Charter)
Delaware 04-2795439
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification Number)
200 Murray Hill Parkway
East Rutherford, NJ 07073
(Address of principal executive offices) (Zip Code)
(201) 330-1400
Registrant's telephone number, including area code
Not applicable
Former name, former address and former fiscal year, if changed since
last report.
Indicate by check mark whether the Registrant: (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act
of 1934 during the preceding 12 months (or for such shorter period that the
Registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days.
Yes X No
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practical date.
Common Stock, $.01 Par Value - 5,570,921 shares as of August 31, 1995
Class A Common Stock, $.01 Par Value - 1,224,230 shares as of
August 31, 1995
<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
INDEX
Page
Number
PART I FINANCIAL INFORMATION:
Consolidated Balance Sheets as of
August 31, 1995 and November 30, 1994. . . . . . . .1-2
Consolidated Statements of Operations for the three
Months and nine months ended August 31, 1995
and 1994 . . . . . . . . . . . . . . . . . . . . . . .3
Consolidated Statements of Cash Flows for
the nine months ended August 31, 1995
and 1994 . . . . . . . . . . . . . . . . . . . . . . .4
Notes to Consolidated Financial Statements . . . . . 5-12
Management Discussion and Analysis of
Results of Operations and Financial
Condition. . . . . . . . . . . . . . . . . . . . .13-14
PART II OTHER INFORMATION. . . . . . . . . . . . . . .15-16
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . 17
<PAGE>
<TABLE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
A S S E T S
<CAPTION>
August 31,
1995 November 30,
(Unaudited) 1994
<S> <C> <C>
Current Assets
Cash and cash equivalents $ 144,700 $ 100,705
Short-term investments and marketable
securities (Note 6) 1,986,324 1,612,819
Accounts receivable, net of allowances of
$951,371 and $979,796, respectively 3,715,524 5,339,028
Inventories 6,106,112 7,518,526
Prepaid expenses and sundry receivables 477,559 285,367
Deferred advertising costs (Note 2) 585,059 -
Due from officers - Current 2,000 21,231
Prepaid income taxes 387,665 88,279
Deferred income taxes 518,524 529,336
Total Current Assets 13,923,467 15,495,291
Property and Equipment, net of accumulated
depreciation and amortization 722,056 683,015
Intangible Assets, net of accumulated
amortization of $23,796 at August 31, 1995
and $18,753 at November 30, 1994 114,762 85,967
Other Assets
Marketable securities 3,011,922 3,615,161
Treasury bonds 87,300 81,108
Due from officers - Non-current 25,250 25,250
Deferred income taxes 32,357 17,531
Other 54,606 50,570
Total Other Assets 3,211,435 3,789,620
Total Assets $17,971,720 $20,053,893
<FN>
See Notes to Consolidated Financial Statements.
</FN>
-1-
<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
<CAPTION>
August 31,
1995 November 30,
(Unaudited) 1994
<S> <C> <C>
Current Liabilities
Notes payable - Current portion $ 288,000 $ 288,000
Accounts payable and accrued liabilities 5,929,546 7,600,113
Income taxes payable - 6,354
Total Current Liabilities 6,217,546 7,894,467
Long-Term Debt (net of current portion) 183,067 399,067
Shareholders' Equity
Common stock, $.01 par; authorized
15,000,000 shares; issued and
outstanding 5,570,921 and 5,496,421
shares, respectively 55,709 54,964
Class A common stock, $.01 par; authorized
5,000,000 shares; issued and outstanding
1,224,230 and 1,293,030 shares, respectively 12,242 12,930
Additional paid-in capital 4,281,938 4,275,535
Retained earnings 7,256,399 7,667,797
Unrealized gains (losses) on marketable
securities ( 35,181) ( 250,867)
Total Shareholders' Equity 11,571,107 11,760,359
Total Liabilities and Shareholders' Equity $17,971,720 $20,053,893
<FN>
See Notes to Consolidated Financial Statements.
</FN>
-2-
<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<CAPTION>
Three Months Ended Nine Months Ended
August 31, August 31,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Revenues
Sales of health and
beauty products, net $9,023,458 $11,146,324 $29,401,865 $36,351,761
Other income 103,248 93,239 264,555 250,735
9,126,706 11,239,563 29,666,420 36,602,496
Costs and Expenses
Costs of sales 3,993,808 4,239,718 11,669,715 13,212,043
Selling, general and
administrative expenses 2,159,398 2,610,263 8,110,982 9,003,540
Advertising, cooperative
and promotions 3,646,273 3,325,275 9,953,575 10,225,884
Research and development 100,740 188,892 397,110 410,439
Provision for doubtful
accounts 7,830 25,443 116,104 76,282
Interest expense 13,459 19,477 56,003 52,229
9,921,508 10,409,068 30,303,489 32,980,417
Net Income before
IncomeTaxes ( 794,802) 830,495 ( 637,069) 3,622,079
Provision for Income
Taxes ( 305,407) 327,621 ( 225,671) 1,451,367
Net Income ($ 489,395)$ 502,874 ($ 411,398) $2,170,712
Income Per Common
Share (Note 2):
Net income from
operations ($.07) $.06 ($.06) $.27
<FN>
See notes to Financial Statements.
</FN>
-3-
<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED AUGUST 31,
(UNAUDITED)
<CAPTION>
1995 1994
<S> <C> <C>
Cash Flows from Operating Activities:
Net (loss) income ($ 411,398) $2,170,712
Adjustments to reconcile net (loss) income
to net cash provided by (Used in)
operating activities:
Depreciation and amortization 239,654 171,784
Amortization of bond premium 5,553 -
Gain on sale of securities ( 1,416) -
(Increase) in deferred income taxes ( 4,014) ( 114,222)
Decrease in advanced royalties - 81,667
Decrease (increase) in accounts receivable 1,623,504 ( 2,322,070)
Decrease in inventory 1,412,414 901,899
(Increase) decrease in prepaid expenses ( 1,076,637) 6,080
(Decrease) in accounts payable and
and accrued liabilities ( 1,670,567) ( 1,294,840)
(Decrease) in taxes payable ( 6,354) ( 323,096)
(Increase) decrease in security deposits ( 4,036) 5,811
Net Cash Provided by (Used in)
Operating Activities 106,703 ( 716,275)
Cash Flows from Investing Activities:
Acquisition of property, plant and equipment ( 307,490) ( 301,108)
Purchase of short-term investments and
securities ( 313,795) ( 1,138,769)
Proceeds of money due from officers 19,231 -
(Increase) in other assets ( 6,192) ( 5,760)
Proceeds from sale of investments 755,078 -
Net Cash Provided (Used in)
Investing Activities 146,832 ( 1,445,637)
Cash Flows from Financing Activities:
Proceeds from borrowings - 700,000
Payment on debt ( 216,000) ( 422,715)
Proceeds from stock options exercises 6,460 103,975
Net Cash (Used in) Provided by
Financing Activities ( 209,540) 381,260
Net Increase (Decrease) in Cash 43,995 (1,780,652)
Cash at Beginning of Period 100,705 1,798,815
Cash at End of Period $ 144,700 $ 18,163
Supplemental Disclosures of Cash Flow
Information:
Cash paid during the period for:
Interest $ 57,273 $ 52,366
Income taxes 94,525 1,885,019
<FN>
See notes to Financial Statements.
</FN> -4-
</TABLE>
<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 1: BASIS OF PRESENTATION
The accompanying unaudited condensed consolidated financial statements
have been prepared in accordance with generally accepted accounting
principles for interim financial information and with the instructions to Form
10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of
the information and footnotes required by generally accepted accounting
principles for complete financial statements. In the opinion of management,
all adjustments (consisting of normal recurring accruals) considered necessary
for a fair presentation have been included. Operating results for the
nine month period ended August 31, 1995 are not necessarily indicative of the
results that may be expected for the year ended November 30, 1995. For
further information, refer to the consolidated financial statements and foot
notes thereto included in the Company's annual report on Form 10-K for the
year ended November 30, 1994.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation:
The consolidated financial statements include the accounts of the Company
and its wholly-owned subsidiaries. All significant inter-company accounts and
transactions have been eliminated.
Advertising and Related Costs:
In accordance with APB 28 Interim Financial Reporting the Company ex
penses its advertising and related costs proportionately over the interim
periods based on its total expected costs per its various advertising programs.
Any necessary accrual or deferral is accordingly reflected in the balance
sheet for the interim period. However, for annual reporting purposes, no
advertising or related costs are capitalized and all are expensed in the fiscal
year in which they are incurred.
Cash Equivalents:
For purposes of the statement of cash flows, the Company considers all
highly liquid instruments purchased with an original maturity of less than
three months to be cash equivalents.
Inventories:
Inventories are stated at the lower of cost (first-in, first-out) or market.
Product returns are recorded in inventory when they are received at the lower
of their original cost or market, as appropriate. Obsolete inventory is
written off and its value is removed from inventory at the time its
obsolescence is determined.
-5-
<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Property and Equipment and Depreciation and Amortization:
Property and equipment are stated at cost. The Company charges to expense
repairs and maintenance items, while major improvements and betterments
are capitalized. When the Company sells or otherwise disposes of property
and equipment items, the cost and related accumulated depreciation are
removed from the respective accounts and any gain or loss is included in
earnings.
Depreciation and amortization are provided on the straight-line method over
the following estimated useful lives or lease terms of the assets:
Machinery and equipment 7-10 years
Furniture and fixtures 5-7 years
Tools, dies and masters 2-7 years
Transportation equipment 7 years
Leasehold improvements 7-10 years or life of lease whichever
is shorter
Intangible Assets:
Intangible assets are stated at cost. Patents and trademarks are amortized
on the straight-line method over a period of 17 years; organization expenses
are amortized on the straight-line method over five (5) years.
Tax Credits:
Tax credits, when present, are accounted for using the flow-through method
as a reduction of income taxes in the years utilized.
Earnings Per Share:
Earnings per share have been computed based on the weighted average of
outstanding common shares and common stock equivalents during the
periods, based on the treasury stock method using average market price.
Since the effect of common stock equivalents is anti-dilutive only the
weighted average of outstanding common shares has been used.
-6-
<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 3: INVENTORIES
The components of inventory consist of the following:
August 31, November 30,
1995 1994
Raw materials $3,392,860 $3,903,028
Finished goods 2,713,252 3,615,498
$6,106,112 $7,518,526
NOTE 4: ACCOUNTS PAYABLE AND ACCRUED LIABILITIES
The following items which exceeded 5% of total current liabilities are
included in accounts payable and accrued liabilities as of:
August 31, November 30,
1995 1994
a) Media advertising $2,008,000 $1,460,000
b) Coop advertising 650,000 547,000
c) Accrued returns 386,000 443,000
d) Payroll and bonuses * 547,000
$3,044,000 $2,997,000
All other liabilities were for trade payables or individually did not exceed
5% of total current liabilities.
* Under 5%.
NOTE 5: OTHER INCOME
Other income consists of the following for the nine month periods ended
August 31, 1995 and 1994:
1995 1994
Interest income $223,112 $242,074
Royalty income 8,349 -
Dividend income 12,154 12,358
Miscellaneous 20,940 (3,697)
$264,555 $250,735
-7-
<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 6: SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES
Short-term investments and marketable securities consist of corporate and
government bonds and equity securities. In 1994 the Company adopted the
accounting principles promulgated by SFAS No. 115 Accounting for Certain
Investments in Debt and Equity Securities. The Company has classified its
investments as Available-for-Sale securities. Accordingly, such investments
are reported at fair market value, with the resultant unrealized gains and
losses reported as a separate component of shareholders' equity. Prior to
1994, the Company reported marketable securities at the lower of cost or
market value; unrealized losses were charged to earnings.
The market value at August 31, 1995 was $5,085,546 as compared to $5,309,088
at November 30, 1994. The cost and market values of the investments
at August 31, 1995 were as follows:
-8-
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<TABLE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
MARKETABLE SECURITIES - OTHER INVESTMENTS
NOTE 6: SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
<CAPTION>
COL. A COL. B COL. C COL. D COL. E
Amount at Which
Each Portfolio
Number of Market Of Equity Security
Units-Principal Value of Issues and Each
Amount of Each Issue Other Security
Name of Issuer and Maturity Interest Bonds and Cost of at Balance Issue Carried in
Title of Each Issue Date Rate Notes Each Issue Sheet Date Balance Sheet
CORPORATE OBLIGATIONS:
<S> <C> <C> <C> <C> <C> <C>
AT&T 6/01/98 4.750% $100,000 $ 99,006 $ 96,125 $ 96,125
AT&T 2/15/96 4.500 100,000 100,187 99,407 99,407
AT&T 2/15/96 4.500 300,000 300,254 298,221 298,221
Bank America 7/15/97 6.000 200,000 200,000 199,264 199,264
Bankers Trust 7/01/96 4.700 100,000 100,209 98,783 98,783
Baxter International 10/01/95 5.000 100,000 100,028 99,940 99,940
Baxter International 10/01/95 5.000 100,000 100,046 99,940 99,940
Con Edison 12/15/96 5.900 100,000 99,875 99,535 99,535
Dayton P & L 5/01/97 5.625 100,000 98,265 99,072 99,072
General Motors Acceptance
Corp. 10/01/96 8.000 200,000 200,650 203,682 203,682
GMAC 10/02/95 5.250 100,000 100,000 99,944 99,944
ITT Financial Corp. 10/15/95 7.375 200,000 200,064 200,284 200,284
-9-
<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
MARKETABLE SECURITIES - OTHER INVESTMENTS
(UNAUDITED)
NOTE 6: SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
<CAPTION>
COL. A COL. B COL. C COL. D COL. E
Amount at Which
Each Portfolio
Number of Market Of Equity Security
Units-Principal Value of Issues and Each
Amount of Each Issue Other Security
Name of Issuer and Maturity Interest Bonds and Cost of at Balance Issue Carried in
Title of Each Issue Date Rate Notes Each Issue Sheet Date Balance Sheet
CORPORATE OBLIGATIONS: (Continued)
<S> <C> <C> <C> <C> <C> <C>
Merrill Lynch 6/24/96 4.750% $100,000 $ 100,143 $ 98,739 $ 98,739
Merrill Lynch 6/24/96 4.750 100,000 100,143 98,739 98,739
Shell Oil Corp. 9/15/95 7.000 100,000 100,011 100,033 100,033
Tennessee Valley 3/04/98 5.125 100,000 100,000 97,281 97,281
Union Electric 3/01/97 5.500 50,000 49,245 49,573 49,573
$2,148,126 $2,138,562 $2,138,562
-10-
<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
MARKETABLE SECURITIES - OTHER INVESTMENTS
(UNAUDITED)
NOTE 6: SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
<CAPTION>
COL. A COL. B COL. C COL. D COL. E
Amount at Which
Each Portfolio
Number of Market Of Equity Security
Units-Principal Value of Issues and Each
Amount of Each Issue Other Security
Name of Issuer and Maturity Interest Bonds and Cost of at Balance Issue Carried in
Title of Each Issue Date Rate Notes Each Issue Sheet Date Balance Sheet
GOVERNMENT OBLIGATIONS:
<S> <C> <C> <C> <C> <C> <C>
US Treasury Note 10/31/98 4.750% $100,000 $ 99,684 $ 96,469 $ 96,469
US Treasury Note 10/31/98 4.750 200,000 199,992 192,938 192,938
US Treasury Note 5/15/96 4.250 100,000 99,939 99,000 99,000
US Treasury Note 5/15/96 4.250 100,000 100,002 99,000 99,000
US Treasury Note 11/15/96 4.375 100,000 99,969 98,406 98,406
US Treasury Note 10/15/98 7.125 250,000 253,325 258,125 258,125
US Treasury Note 5/15/96 4.250 100,000 99,909 99,000 99,000
US Treasury Note 1/31/97 6.250 100,000 99,500 100,656 100,656
US Treasury Note 12/31/96 6.125 200,000 197,423 201,000 201,000
US Treasury Note 11/15/96 4.375 200,000 197,852 196,812 196,812
US Treasury Note 11/15/96 4.375 200,000 196,133 196,812 196,812
US Treasury Note 11/15/96 4.375 100,000 98,003 98,406 98,406
US Treasury Note 11/15/96 4.375 100,000 97,855 98,406 98,406
US Treasury Bil 7/25/96 5.330 45,000 42,552 42,804 42,804
-11-
<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
MARKETABLE SECURITIES - OTHER INVESTMENTS
(UNAUDITED)
NOTE 6: SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
<CAPTION>
COL. A COL. B COL. C COL. D COL. E
Amount at Which
Each Portfolio
Number of Market Of Equity Security
Units-Principal Value of Issues and Each
Amount of Each Issue Other Security
Name of Issuer and Maturity Interest Bonds and Cost of at Balance Issue Carried in
Title of Each Issue Date Rate Notes Each Issue Sheet Date Balance Sheet
GOVERNMENT OBLIGATIONS: (Continued)
<S> <C> <C> <C> <C> <C> <C>
US Treasury Note 8/15/96 4.375% $200,000 $ 195,936 $ 197,562 $ 197,562
FHLMC 1628-N 12/25/2013 6.500 50,000 48,024 44,571 44,571
EE Bonds - 7.050 90,000 87,300 87,300 87,300
FNMA 93-6-26-B 8/25/2023 7.000 10,000 8,897 8,423 8,423
FNMA 93-224-D 11/25/2023 6.500 104,000 101,873 90,575 90,575
FNMA 92-2-N 1/28/2024 6.500 52,000 47,424 43,609 43,609
FHJMC 1702-U 3/15/2024 7.000 4,000 3,739 3,566 3,566
US Treasury Bill 11/16/1995 5.420 200,000 197,320 197,732 197,732
FNMA 11/10/98 5.050 200,000 199,950 192,812 192,812
2,772,601 2,743,984 2,743,984
EQUITY SECURITIES:
Number of
Shares
Preferred Stock:
Bank America Corp. 8,000 200,000 203,000 203,000
$5,120,727 $5,085,546 $5,085,546
-12-
</TABLE>
<PAGE>
CCA INDUSTRIES, INC.
MANAGEMENT DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
(UNAUDITED)
For the nine month period ended August 31, 1995, the Company had net sales of
$29,401,865 and net (loss) of ($411,398) after a provision for income taxes of
($225,671) as compared to net sales of $36,351,761 and net income of $2,170,712
after a provision for income taxes of $1,451,367 for the nine month period
ending August 31, 1994.
The cost of sales percentage for the nine months increased from 36.3% in 1994
to 37% in 1995 primarily due to the higher percentage overhead costs (factored
into the cost of goods) represented in the total cost of goods; as well as
certain product mix fluctuations. Advertising, cooperative and promotional
allowance expenditures during the quarter increased as a percentage of sales
from 28% in 1994 to 34% in 1995 due to the lower than anticipated sales volume.
As part of the registrant's business it is necessary to enter into co-operative
advertising agreements and other promotional activities with its accounts,
especially upon the introduction of a new product. Both co-op advertising and
promotions have a material effect on the Company's operations. If the
advertising and promotions are successful, revenues will be increased
accordingly. Should the co-op and promotions not be successful, it will have a
negative impact on the Company's promotional cost per sale, and have a negative
effect on income. The Company attempts to anticipate its advertising and
promotional commitments as a percent of gross sales in order to attempt to
control its effect on its net income. However, sales for the period were lower
then expected and, therefore, the expense as a percentage of sales was higher.
In accordance with APB 28 Interim Financial Reporting the Company expenses its
advertising and related costs proportionately over the interim periods based on
its total expected costs per its various advertising programs. Consequently a
deferral is accordingly reflected in the balance sheet for the interim period.
Although selling, general and administrative expenses ("SG&A") decreased due to
expenses related to the larger sales volume in the prior year, SG&A as a
percentage of sales increased to 28% from 25% due to the lower volume.
Income before taxes for the nine months decreased to ($637,069) from
$3,622,079. This was primarily a result of the lower sales as compared to the
prior year. Selling, general and administrative expenses ("SG&A") decreased for
the nine months from $9,003,540 to $8,110,982 primarily due to cost related to
the lower sales volume (i.e. commissions and freight-out). However, even with
this decrease SG&A still represented 28% of sales for 1995 instead of 25% for
1994 due to the large decrease in sales volume.
-13-
<PAGE>
CCA INDUSTRIES, INC.
MANAGEMENT DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
(UNAUDITED)
For the three month period ended August 31, 1995, net sales were $9,023,458 as
compared to $11,146,324 for August 31, 1994. Net income for the quarter before
taxes decreased from $502,874 to ($489,395). Gross margins of 56% for the
three months ended August 31, 1995 were down from 62% in 1994. Advertising,
cooperative and promotional allowance expenditures during the quarter increased
from $3,325,575 to $3,646,273. Selling, general and administrative expenses
were approximately 24% as compared with 23%.
All of the Company's sales were primarily to drugstore chains, food chains and
mass merchandisers throughout the United States.
The Company's financial position as at August 31, 1995 consists of current
assets of $13,923,467 and current liabilities of $6,217,546. During the nine
month period ended August 31, 1995, shareholders' equity decreased from
$11,760,359 at November 30, 1994 to $11,571,107 at August 31, 1995. This was
due primarily to the losses sustained for the nine months offset by the
unrealized gain in certain securities in the Company's investment portfolio of
$215,686 in addition to the exercise of stock options.
During the nine months, the Company generated $106,703 from operations and
$774,309 from the sale and liquidation of loans and investments but used
$627,477 to purchase additional property and equipment and marketable
securities. The Company also used $216,000 to reduce borrowings and generated
$6,460 from stock option exercises. This resulted in an increase in the
Company's cash of $43,995.
The Company believes that its current financial condition is sufficient to
support its proposed operations for the near future.
-14-
<PAGE>
CCA INDUSTRIES, INC.
PART II OTHER INFORMATION
All information pertaining to Part II is omitted pursuant to the instructions
pertaining to that part.
The Company did not file any reports on Form 8-K during the three months ended
August 31, 1995.
-15-
<PAGE>
<TABLE>
PART II, ITEM 6. (Continued) EXHIBIT 11
CCA INDUSTRIES, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(UNAUDITED)
<CAPTION>
Three Months Ended Nine Months Ended
August 31, August 31,
1995 1994 1995 1994
Item 6.
<S> <C> <C> <C> <C>
Primary:
Average shares
outstanding 6,794,733 6,784,994 6,794,108 6,773,186
Net effect of dilutive stock
options--based on the
treasury stock method
using average market
price * 1,306,730 * 1,352,454
TOTALS 6,794,733 8,091,724 6,794,108 8,125,640
Net income ($ 489,395) $ 502,874 ($ 411,398) $2,170,712
Per share amount ($.07) $.06 ($.06) $.27
</TABLE>
-16-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
CCA INDUSTRIES, INC.
By: David Edell
David Edell, President
By: Ira W. Berman
Ira W. Berman, Secretary
-17-
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> NOV-30-1995
<PERIOD-END> AUG-31-1995
<CASH> 144,700
<SECURITIES> 1,986,324
<RECEIVABLES> 4,666,895
<ALLOWANCES> 951,371
<INVENTORY> 6,106,112
<CURRENT-ASSETS> 13,923,467
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0
0
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</TABLE>
