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, 1996
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 - $5,977,471 shares as of August 31, 1996
Class A Common Stock, $.01 Par Value - $1,191,280 shares as of
August 31, 1996
<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
INDEX
Page
Number
PART I FINANCIAL INFORMATION:
Consolidated Balance Sheets as of
August 31, 1996 and November 30, 1995. . . . . . . . . . . . 1-2
Consolidated Statements of Operations for the three
Months and nine months ended August 31, 1996
and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Consolidated Statements of Cash Flows for
the nine months ended August 31, 1996
and 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . 4
Notes to Consolidated Financial Statements . . . . . . . . . .5-11
Management Discussion and Analysis of
Results of Operations and Financial
Condition. . . . . . . . . . . . . . . . . . . . . . . . . 12-13
PART II OTHER INFORMATION. . . . . . . . . . . . . . . . . . . 14-15
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . .16
<PAGE>
<TABLE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
A S S E T S
<CAPTION>
August 31,
1996 November 30,
(Unaudited) 1995
<S> <C> <C>
Current Assets
Cash and cash equivalents $ 75,782 $ 312,150
Short-term investments and marketable
securities (Note 6) 1,648,663 2,539,037
Accounts receivable, net of allowances of
$1,072,432 and $905,953, respectively 5,724,815 4,044,420
Inventories 7,043,888 6,414,097
Prepaid expenses and sundry receivables 278,044 329,935
Deferred advertising costs (Note 2) 1,525,288 -
Due from officers - Current 11,384 1,500
Prepaid income taxes - 652,710
Deferred income taxes 647,233 698,415
Total Current Assets 16,955,097 14,992,264
Property and Equipment, net of accumulated
depreciation and amortization 735,995 713,125
Intangible Assets, net of accumulated
amortization of $32,851 at August 31, 1996
and $25,945 at November 30, 1995 143,391 128,538
Other Assets
Marketable securities 1,426,063 1,701,138
Treasury bonds 90,576 87,300
Due from officers - Non-current 25,250 25,250
Deferred income taxes 55,636 33,807
Other 52,983 62,664
Total Other Assets 1,650,508 1,910,159
Total Assets $19,484,991 $17,744,086
</TABLE>
See Notes to Consolidated Financial Statements.
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<PAGE>
<TABLE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
<CAPTION>
August 31,
1996 November 30,
(Unaudited) 1995
<S> <C> <C>
Current Liabilities
Notes payable - Current portion $ 772,500 $ 298,078
Accounts payable and accrued liabilities 7,005,706 6,878,425
Income taxes payable 120,023 -
Total Current Liabilities 7,898,229 7,176,503
Long-Term Debt (net of current portion) - 111,067
Shareholders' Equity
Common stock, $.01 par; authorized
15,000,000 shares; issued and
outstanding 5,977,471 and 5,603,871
shares, respectively 59,774 56,039
Class A common stock, $.01 par; authorized
5,000,000 shares; issued and outstanding
1,191,280 shares, respectively 11,912 11,912
Additional paid-in capital 4,455,212 4,282,008
Retained earnings 7,086,090 6,101,229
Unrealized (losses) gains on marketable
securities ( 26,226) 5,328
Total Shareholders' Equity 11,586,762 10,456,516
Total Liabilities and Shareholders'Equity $19,484,991 $17,744,086
</TABLE>
See Notes to Consolidated Financial Statements.
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<PAGE>
<TABLE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
<CAPTION>
Three Months Ended Nine Months Ended
August 31, August 31,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Revenues
Sales of health
and beauty
products, net $10,232,749 $9,023,458 $30,855,971 $29,401,865
Other income 51,239 103,248 165,330 264,555
10,283,988 9,126,706 31,021,301 29,666,420
Costs and Expenses
Costs of sales 3,872,840 3,993,808 11,730,860 11,669,715
Selling, general and
administrative
expenses 2,514,954 2,159,398 8,296,401 8,110,982
Advertising,
cooperative
and promotions 3,475,998 3,646,273 8,656,522 9,953,575
Research and
development 100,478 100,740 367,169 397,110
Provision for doubtful
accounts 13,809 7,830 111,803 116,104
Interest expense 11,291 13,459 45,353 56,003
9,989,370 9,921,508 29,208,108 30,303,489
Net Income before
Income Taxes 294,618 ( 794,802) 1,813,193 ( 637,069)
Provision for Income
Taxes 142,502 ( 305,407) 828,332 ( 225,671)
Net Income $ 152,116 ($ 489,395) $ 984,861 ($ 411,398)
Income Per Common
Share (Note 2):
Net income from
operations $.02 ($.07) $.12 ($.06)
</TABLE>
See notes to Financial Statements.
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<PAGE>
<TABLE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED AUGUST 31,
(UNAUDITED)
<CAPTION>
1996 1995
<S> <C> <C>
Cash Flows from Operating Activities:
Net income (loss) $ 984,861 ($ 411,398)
Adjustments to reconcile net income (loss)
to net cash (used in) provided by
operating activities:
Depreciation and amortization 289,874 239,654
Amortization of bond premium 1,792 5,553
Gain on sale of securities ( 6,684) ( 1,416)
Decrease (increase) in deferred income taxes 29,354 ( 4,014)
(Increase) decrease in accounts receivable ( 1,680,395) 1,623,504
(Increase) decrease in inventory ( 629,791) 1,412,414
(Increase) in deferred expenses and
miscellaneous receivable ( 1,483,281) ( 1,076,637)
Increase (decrease) in accounts payable
and accrued liabilities 127,281 ( 1,670,567)
Increase (decrease) in taxes payable 772,733 ( 6,354)
Decrease (increase) in security deposits 9,681 ( 4,036)
Net Cash (Used in) Provided by
Operating Activities ( 1,584,575) 106,703
Cash Flows from Investing Activities:
Acquisition of property, plant and equipment( 327,597) ( 307,490)
Purchase of short-term investments and
securities ( 109,961) ( 313,795)
Advances of money to officers ( 54,890) -
Proceeds of money due from officers 54,912 19,231
(Increase) in other assets - ( 6,192)
Proceeds from sale of investments 1,245,448 755,078
Net Cash Provided by Investing Activities 807,912 146,832
Cash Flows from Financing Activities:
Proceeds from borrowings 1,000,000 -
Payment on debt ( 636,645) ( 216,000)
Proceeds from stock options exercises 176,940 6,460
Net Cash Provided by (Used in)
Financing Activities 540,295 ( 209,540)
Net (Decrease) Increase in Cash ( 236,368) 43,995
Cash at Beginning of Period 312,150 100,705
Cash at End of Period $ 75,782 $ 144,700
Supplemental Disclosures of Cash Flow
Information:
Cash paid during the period for:
Interest $ 48,600 $ 57,273
Income taxes 27,315 94,525
</TABLE>
See notes to Financial Statements.
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<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 six month period ended August 31, 1996 are not
necessarily indicative of the results that may be expected for the year
ended November 30, 1996. For further information, refer to the consoli-
dated financial statements and footnotes thereto included in the
Company's annual report on Form 10-K for the year ended November 30,
1995.
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
expenses 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.
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<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
Financial Instruments
The carrying value of assets and liabilities considered financial instruments
under SFAS Note #107 approximate their respective fair value.
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 which ever
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.
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<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
Fully diluted earnings per share are not presented because they result in
dilution of less than 3%.
NOTE 3: INVENTORIES
The components of inventory consist of the following:
August 31, November 30,
1996 1995
Raw materials $4,643,287 $3,875,751
Finished goods 2,400,601 2,538,346
$7,043,888 $6,414,097
NOTE 4: DEFERRED ADVERTISING
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 of $1,525,288 is accordingly reflected
in the balance sheet for the interim period. This deferral is the result of
the Company's $8,000,000 media budget for the year which contemplates
drastically lower spending in the 4th quarter than in the other three
quarters; as well as the Company's Co-op advertising commitments which
also anticipates a lower expenditure in the 4th quarter.
The table below sets forth the calculation:
1996 1995
(In Millions) (In Millions)
Media advertising budget for the fiscal year $8.0 $ 9.3
Pro-rata portion for nine months $6.0 $ 7.0
Media advertising spent 7.1 7.3
Accrual (Deferral) ($1.1) ($ . 3)
Anticipated Co-op advertising commitments $3.4 $ 3.5
Pro-rata portion for nine months $2.5 $ 2.6
Co-op advertising spent 2.9 2.9
Accrual (Deferral) ($ .4) ($ .3)
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<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 5: 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,
1996 1995
a) Media advertising $1,803 $1,812
b) Coop advertising 485 519
c) Accrued returns 595 435
$2,883 $2,766
All other liabilities were for trade payables or individually did not exceed
5% of total current liabilities.
NOTE 6: OTHER INCOME
Other income consists of the following at August 31, 1996 and 1995:
1996 1995
Interest income $150,109 $223,112
Royalty income - 8,349
Dividend income 8,474 12,154
Miscellaneous 6,747 20,940
$165,330 $264,555
NOTE 7: SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES
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, 1996 was $3,165,302 as compared to
$4,327,475 at November 30, 1995. The cost and market values of the
investments at August 31, 1996 were as follows:
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<PAGE>
NOTE 7: SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES - (CONTINUED)
<TABLE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
MARKETABLE SECURITIES - OTHER INVESTMENTS
<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 $ 97,125 $ 97,125
Bank America 7/15/97 6.000 200,000 200,000 199,694 199,694
Con Edison 12/15/96 5.900 100,000 99,875 100,024 100,024
Dayton P & L 5/01/97 5.625 100,000 98,265 99,762 99,762
General Motors Acceptance
Corp. 10/01/96 8.000 200,000 200,050 200,000 200,000
Tennessee Valley 3/04/98 5.125 100,000 100,000 98,188 98,188
Union Electric 3/01/97 5.500 50,000 49,244 49,902 49,902
$846,440 $844,695 $844,695
</TABLE>
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<PAGE>
NOTE 7: SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES - (CONTINUED)
<TABLE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
MARKETABLE SECURITIES - OTHER INVESTMENTS
<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 $ 96,781 $ 96,781
US Treasury Note 10/31/98 4.750 200,000 199,992 193,562 193,562
US Treasury Note 11/15/96 4.375 100,000 99,969 99,781 99,781
US Treasury Note 10/15/98 7.125 250,000 252,260 253,828 253,828
US Treasury Note 1/31/97 6.250 100,000 99,500 100,313 100,313
US Treasury Note 12/31/96 6.125 200,000 197,423 200,500 200,500
US Treasury Note 11/15/96 4.375 200,000 197,852 199,562 199,562
US Treasury Note 11/15/96 4.375 200,000 196,133 199,562 199,562
US Treasury Note 11/15/96 4.375 100,000 98,003 99,781 99,781
US Treasury Note 11/15/96 4.375 100,000 97,855 99,781 99,781
</TABLE>
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<PAGE>
<TABLE>
NOTE 7: SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES - (CONTINUED)
CCA INDUSTRIES, INC. AND SUBSIDIARIES
MARKETABLE SECURITIES - OTHER INVESTMENTS
<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 11/17/96 5.22% $ 63,000 $ 62,191 $ 62,385 $ 62,385
US Treasury Note 11/21/96 5.200 45,000 44,424 44,471 44,471
FHLMC 1628-N 12/25/2013 6.500 50,000 48,024 42,903 42,903
EE Bonds - 7.050 90,000 90,576 90,576 90,576
FNMA 93-6-26-B 8/25/2023 7.000 10,000 8,897 8,246 8,246
FNMA 93-224-D 11/25/2023 6.500 104,000 101,873 88,314 88,314
FNMA 92-2-N 1/28/2024 6.500 52,000 47,424 42,378 42,378
FHJMC 1702-U 3/15/2024 7.00 4,000 3,058 2,821 2,821
FNMA 11/10/98 5.050 200,000 199,950 194,062 194,062
2,145,088 2,119,607 2,119,607
EQUITY SECURITIES:
Number of
Shares
Preferred Stock:
Bank America Corp. 8,000 200,000 201,000 201,000
$3,191,528 $3,165,302 $3,165,302
</TABLE>
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<PAGE>
CCA INDUSTRIES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
(UNAUDITED)
For the nine month period ended August 31, 1996, the Company had net sales
of $30,855,971 and net income of $984,861 after a provision for income taxes of
$828,332, as compared to net sales of $29,401,865 and net loss of ($411,398)
after a provision for income taxes of($225,671) for the nine month period ended
August 31, 1995. Gross margins of 62% for the nine months were better than the
60% margins realized for the nine months in 1995 due to the higher percentage
overhead costs (added into the cost of goods) represented in the total cost of
goods in 1995, as well as certain product mix fluctuating. Advertising,
cooperative and promotional allowance expenditures decreased during the nine
month period from $9,953,575 to $8,656,522. Advertising expenditures were 28%
of sales for the nine months ended August 31, 1996 as compared with 34% for the
period ended August 31, 1995. 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. 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 of $1.5 million is accordingly reflected in the balance
sheet for the interim period. This deferral is the result of the Company's
$8.0 million media budget for the year which contemplates drastically lower
spending in the 4th quarter than in the other three quarters; as well as the
Company's Co-op advertising commitments which also anticipates lower
expenditures in the 4th quarter. Specifically, the Company spent approximately
$7.1 million in the first nine months on media advertising and, therefore,
expensed $6.0 million and deferred $1.1 million as of August 31, 1996.
Similarly, as of August 31, 1996 the Company's Co-op advertising commitments
for the year ended November 30, 1996 totaled approximately $3.4 million of
which $2.9 million was spent in the first nine months resulting in an expense
of $2.5 million and a deferral of approximately $.4 million as of August 31,
1996.
Comparatively as of August 31, 1995, the Company had anticipated media
advertising expense in fiscal year 1995 of $9.3 million and spent approximately
$7.3 million in the first nine months resulting in a deferral of approximately
$.3 million. The anticipated Co-op commitments as of August 31, 1996 were
$3.5 million of which $2.9 million was spent resulting in a deferral of $.3
million.
Selling, general and administrative expenses ("SG&A") decreased as a
percentage of sales compared to the prior year. The decrease to 27% from 28%
was due to the slightly higher sales volume.
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<PAGE>
CCA INDUSTRIES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
(UNAUDITED)
For the three month period ended August 31, 1996, net sales were
$10,232,749 as compared to $9,023,458 for August 31, 1995. Income for the
quarter before taxes increased to $294,618 from ($794,802). Gross margins of
62% for the three months ended August 31, 1996 were up from 56% in 1995.
Advertising, cooperative and promotional allowance expense during the quarter
decreased to $3,475,998 from $3,646,273. Advertising expenses were 34% of
sales for the quarter in 1996 as compared to 40% in 1995. Selling, general and
administrative expenses were approximately 25% in the current quarter as
compared to 24% in 1995.
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, 1996 consists of current
assets of $16,955,097 and current liabilities of $7,898,229. During the nine
month period ended August 31, 1996, shareholders' equity increased from
$10,456,516 at November 30, 1995 to $11,586,762 at August 31, 1996. This
was due primarily to the net income generated for the period.
During the six months, the Company used $1,584,575 in operations,
$136,645 to reduce borrowings, and $327,597 to purchase fixed assets; but
offset most of the cash requirements by the liquidation of short-term
investments of $1,135,487, the proceeds from stock option exercises ($176,940)
and proceeds from short-term borrowings of $500,000. These factors resulted
in a net decrease in the Company's cash of approximately $236,000.
The Company believes that its current financial condition is sufficient to
support its proposed operations for the near future.
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<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, 1996.
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<PAGE>
PART II, ITEM 6. (Continued) EXHIBIT 11
<TABLE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(UNAUDITED)
<CAPTION>
Three Months Ended Nine Months Ended
August 31, August 31,
1996 1995 1996 1995
Item 6.
<S> <C> <C> <C> <C>
Primary:
Average shares
outstanding 7,168,751 6,794,733 7,105,596 6,794,108
Net effect of dilutive stock
options--based on the
treasury stock method
using average market
price 663,557 * 898,599 *
TOTALS 7,832,308 6,794,733 8,004,195 6,794,108
Net income $ 152,116 ($ 489,395) $ 984,861 ($ 411,398)
Per share amount $.02 ($.07) $.12 ($.06)
</TABLE>
* Anti-Dilutive
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<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, President
By:
John Bingman, Treasurer
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<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 9-MOS
<FISCAL-YEAR-END> NOV-30-1996 NOV-30-1996
<PERIOD-END> AUG-31-1996 AUG-31-1996
<CASH> 75,782 75,782
<SECURITIES> 3,165,302 3,165,302
<RECEIVABLES> 6,797,247 6,797,247
<ALLOWANCES> 1,072,432 1,072,432
<INVENTORY> 7,043,888 7,043,888
<CURRENT-ASSETS> 16,955,097 16,955,097
<PP&E> 2,219,700 2,219,700
<DEPRECIATION> 1,340,314 1,340,314
<TOTAL-ASSETS> 19,484,991 19,484,991
<CURRENT-LIABILITIES> 7,898,229 7,898,229
<BONDS> 0 0
0 0
0 0
<COMMON> 71,686 71,686
<OTHER-SE> 11,515,076 11,515,076
<TOTAL-LIABILITY-AND-EQUITY> 19,484,991 19,484,991
<SALES> 10,232,749 30,855,971
<TOTAL-REVENUES> 10,283,988 31,021,301
<CGS> 3,872,840 11,730,860
<TOTAL-COSTS> 9,989,370 29,208,108
<OTHER-EXPENSES> 6,091,430 17,320,092
<LOSS-PROVISION> 13,809 111,803
<INTEREST-EXPENSE> 11,291 45,353
<INCOME-PRETAX> 294,618 1,813,193
<INCOME-TAX> 142,502 828,332
<INCOME-CONTINUING> 152,116 984,861
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 152,116 984,861
<EPS-PRIMARY> .02 .12
<EPS-DILUTED> .02 .12
</TABLE>
