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 May 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 May 31, 1996
Class A Common Stock, $.01 Par Value - 1,191,280 shares as of
May 31, 1996
<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
INDEX
Page
Number
PART I FINANCIAL INFORMATION:
Consolidated Balance Sheets as of
May 31, 1996 and November 30, 1995. . . . . . . . . 1-2
Consolidated Statements of Operations
for the three months and six months ended
May 31, 1996 and 1995 . . . . . . . . . . . . . . . . 3
Consolidated Statements of Cash Flows for
the six months ended May 31, 1996
and 1995. . . . . . . . . . . . . . . . . . . . . . . 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>
May 31,
1996 November 30,
(Unaudited) 1995
<S> <C> <C>
Current Assets
Cash and cash equivalents $ 208,037 $ 312,150
Short-term investments and marketable
securities (Note 7) 1,948,212 2,539,037
Accounts receivable, net of allowances of
$1,023,384 and $905,953, respectively 5,931,559 4,044,420
Inventories 6,718,045 6,414,097
Prepaid expenses and sundry receivables 349,196 329,935
Due from officers - Current 6,325 1,500
Prepaid income taxes 12,792 652,710
Deferred income taxes 638,827 698,415
Deferred Advertising (Note 4) 2,284,242 -
Total Current Assets 18,097,235 14,992,264
Property and Equipment, net of accumulated
depreciation and amortization 747,369 713,125
Intangible Assets, net of accumulated
amortization of $30,614 at May 31, 1996
and $25,945 at November 30, 1995 132,392 128,538
Other Assets
Marketable securities 1,563,433 1,701,138
Treasury bonds 90,576 87,300
Due from officers - Non-current 25,250 25,250
Deferred income taxes 49,798 33,807
Other 53,189 62,664
Total Other Assets 1,782,246 1,910,159
Total Assets $20,759,242 $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>
May 31,
1996 November 30,
(Unaudited) 1995
<S> <C> <C>
Current Liabilities
Notes payable - Current portion $ 255,067 $ 298,078
Accounts payable and accrued
liabilities (Note 5) 9,065,137 6,878,425
Total Current Liabilities 9,320,204 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 6,933,972 6,101,229
Unrealized gains (losses) on marketable
securities ( 21,832) 5,328
Total Shareholders' Equity 11,439,038 10,456,516
Total Liabilities and Shareholders'Equity $20,759,242 $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 Six Months Ended
May 31, May 31,
1996 1995 1996 1995
<S> <C> <C> <C> <C>
Revenues
Sales of Health and
Beauty Products - Net $10,498,104 $10,936,213 $20,623,222 $20,378,407
Other income 53,500 69,266 114,091 161,307
10,551,604 11,005,479 20,737,313 20,539,714
Costs and Expenses
Costs of sales 4,002,443 3,962,589 7,858,020 7,675,907
Selling, general and
administrative expenses 2,936,979 2,923,942 5,781,447 5,951,584
Advertising, cooperative
and promotions 2,571,230 3,424,439 5,180,524 6,307,302
Research and development 130,405 141,426 266,691 296,370
Provision for doubtful
accounts 37,226 103,765 97,994 108,274
Interest expense 20,621 24,624 34,062 42,544
9,698,904 10,580,785 19,218,738 20,381,981
Income before
Income Taxes 852,700 424,694 1,518,575 157,733
Provision for Income
Taxes 388,115 164,115 685,830 79,736
Net Income $ 464,585 $ 260,579 $ 832,745 $ 77,997
Net Income per Common
Share (Note 2) $.06 $.03 $.10 $.01
</TABLE>
See Notes to Consolidated Financial Statements.
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<PAGE>
<TABLE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
<CAPTION>
Six Months Six Months
Ended Ended
May 31, May 31,
1996 1995
<S> <C> <C>
Cash Flows from Operating Activities:
Net income $ 832,745 $ 77,997
Adjustments to reconcile net income to net
cash (used in) provided by operating activities
Depreciation and amortization 185,855 151,699
Amortization of bond premium 1,326 3,884
Decrease in deferred income taxes 43,597 583
(Increase) decrease in accounts receivable ( 1,887,139) 523,088
(Increase) decrease in inventory ( 303,948) 721,305
(Increase) in deferred expenses and
miscellaneous receivables ( 2,306,691) ( 771,643)
Increase (decrease) in accounts payable 2,186,712 ( 496,096)
Increase in taxes payable 639,918 14,576
Decrease (increase) in security deposits 9,475 ( 5)
Net Cash (Used in) Provided by Operating
Activities ( 598,150) 225,388
Cash Flows from Investing Activities:
Acquisition of property, plant and equipment ( 223,953) ( 174,096)
Proceeds of money due from officers 52,573 14,098
Advances of money to officers ( 57,490) -
Purchase of short-term investments - ( 76,983)
Proceeds from sale of investments 700,045 414,245
Net Cash Provided by Investing Activities 471,175 177,264
Cash Flows from Financing Activities:
Proceeds from borrowings 400,000 -
Payment on debt ( 554,078) ( 144,000)
Proceeds from stock option exercises 176,940 6,250
Net Cash Provided by (Used in)
Financing Activities 22,862 ( 137,750)
Net (Decrease) Increase in Cash ( 104,113) 264,902
Cash at Beginning of Period 312,150 100,705
Cash at End of Period $ 208,037 $365,607
Supplemental Disclosures of Cash Flow
Information:
Cash paid during the period for:
Interest $ 33,872 $ 43,103
Income taxes 2,315 55,709
</TABLE>
See Notes to Consolidated 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 finan-
cial 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 re-
quired by generally accepted accounting principles for
complete financial statements. In the opinion of manage-
ment, all adjustments (consisting of normal recurring
accruals) considered necessary for a fair presentation
have been included. Operating results for the six month
period ended May 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
consolidated 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 ac-
counts 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 pro-
portionately 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 depre-
ciation 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 trade-
marks 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 weigh-
ted 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 be-
cause they result in dilution of less than 3%.
NOTE 3: INVENTORIES
The components of inventory consist of the following:
May 31, November 30,
1996 1995
Raw materials $4,308,703 $3,875,751
Finished goods 2,409,342 2,538,346
$6,718,045 $6,414,097
NOTE 4: DEFERRED ADVERTISING
In accordance with APB 28 Interim Financial Reporting the
Company expenses its advertising and related costs pro-
portionately over the interim periods based on its total
expected costs per its various advertising programs.
Consequently a deferral of $2,284,242 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 3rd and 4th quarters.
The table below sets forth the calculation:
1996 1995
(In Millions)(In Millions)
Media advertising budget for the
fiscal year $8.0 $10.0
Pro-rata portion for six months $4.0 $ 5.0
Media advertising spent 5.7 5.5
Accrual (Deferral) ($1.7) ($ .5)
Anticipated Co-op advertising
commitments $2.8 $ 4.0
Pro-rata portion for six months $1.4 $ 2.0
Co-op advertising spent 2.0 2.0
Accrual (Deferral) ($ .6) $ -
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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:
May 31, November 30,
1996 1995
a) Media advertising $2,637 $1,812
b) Coop advertising 577 519
c) Accrued returns 453 435
$3,667 $2,766
All other liabilities were for trade payables or individ-
ually did not exceed 5% of total current liabilities.
NOTE 6: OTHER INCOME
Other income consists of the following at May 31, 1996
and 1995:
1996 1995
Interest income $105,919 $144,588
Royalty income - 8,349
Dividend income 8,172 8,053
Miscellaneous - 317
$114,091 $161,307
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 In-
vestments in Debt and Equity Securities. The Company has
classified its investments as Available-for-Sale securi-
ties. 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; unreal-
ized losses were charged to earnings.
The market value at May 31, 1996 was $3,602,221 as com-
pared to $4,327,475 at November 30, 1995. The cost and
market values of the investments at May 31, 1996 were as
follows:
-8-
<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
CORPORATE OBLIGATIONS:
<S> <C> <C> <C> <C> <C> <C>
AT&T 6/01/98 4.750% $100,000 $ 99,006 $ 97,000 $ 97,000
Bank America 7/15/97 6.000 200,000 200,000 199,426 199,426
Bankers Trust 7/01/96 4.700 100,000 100,021 99,951 99,951
Con Edison 12/15/96 5.900 100,000 99,875 100,005 100,005
Dayton P & L 5/01/97 5.625 100,000 98,265 99,543 99,543
General Motors Acceptance
Corp. 10/01/96 8.000 200,000 200,200 201,510 201,510
</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
CORPORATE OBLIGATIONS: (Continued)
<S> <C> <C> <C> <C> <C> <C>
Merrill Lynch 6/24/96 4.750% $100,000 $ 100,015 $ 99,969 $ 99,969
Merrill Lynch 6/24/96 4.750 100,000 100,015 99,969 99,969
Tennessee Valley 3/04/98 5.125 100,000 100,000 97,875 97,875
Union Electric 3/01/97 5.500 50,000 49,244 49,796 49,796
$ 1,146,641 $ 1,145,044 $ 1,145,044
</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 $ 96,500 $ 96,500
US Treasury Note 10/31/98 4.750 200,000 199,992 193,000 193,000
US Treasury Note 11/15/96 4.375 100,000 99,969 99,531 99,531
US Treasury Note 10/15/98 7.125 250,000 252,525 254,375 254,375
US Treasury Note 1/31/97 6.250 100,000 99,500 100,438 100,438
US Treasury Note 12/31/96 6.125 200,000 197,423 200,688 200,688
US Treasury Note 11/15/96 4.375 200,000 197,852 199,062 199,062
US Treasury Note 11/15/96 4.375 200,000 196,133 199,062 199,062
US Treasury Note 11/15/96 4.375 100,000 98,003 99,531 99,531
US Treasury Note 11/15/96 4.375 100,000 97,855 99,531 99,531
US Treasury Bill 7/25/96 5.330 45,000 42,481 44,661 44,661
</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: (Continued)
<S> <C> <C> <C> <C> <C> <C>
US Treasury Note 8/15/96 4.375% $200,000 $ 195,936 $ 199,626 $ 199,626
FHLMC 1628-N 12/25/2013 6.500 50,000 48,024 43,158 43,158
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 8,157 8,157
FNMA 93-224-D 11/25/2023 6.500 104,000 101,873 87,406 87,406
FNMA 92-2-N 1/28/2024 6.500 52,000 47,424 42,127 42,127
FHJMC 1702-U 3/15/2024 7.00 4,000 3,315 3,186 3,186
FNMA 11/10/98 5.050 200,000 199,950 193,562 193,562
2,277,412 2,254,177 2,254,177
EQUITY SECURITIES:
Number of
Shares
Preferred Stock:
Bank America Corp. 8,000 200,000 203,000 203,000
$3,624,053 $3,602,221 $3,602,221
</TABLE>
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<PAGE>
CCA INDUSTRIES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
(UNAUDITED)
For the six month period ended May 31, 1996, the Company had
net sales of $20,623,222 and net income of $832,745 after a
provision for income taxes of $685,830, as compared to net sales
of $20,378,407 and net income of $77,997 after a provision for
income taxes of $79,736 for the six month period ended May 31,
1995. Gross margins of 62% for the six months were virtually the
same as the prior year. Advertising, cooperative and promotional
allowance expenditures decreased during the six month period from
$6,307,302 to $5,180,524. Advertising expenditures were 25% of
sales for the six months ended May 31, 1996 as compared with 31%
for the period ended May 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 Compan-
y's operations. If the advertising and promotions are success-
ful, 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 adver-
tising 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 $2.3
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 drasti-
cally 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 3rd and 4th
quarters. Specifically, the Company spent approximately $5.7
million in the first six months on media advertising and, there-
fore, expensed $4.0 million and deferred $1.7 million as of May
31, 1996. Similarly, as of May 31, 1996 the Company's Co-op
advertising commitments for the year ended November 30, 1996
totaled approximately $2.8 million of which $2.0 million was
spent in the first six months resulting in an expense of $1.4
million and a deferral of approximately $.6 million as of May 31,
1996.
Comparatively as of May 31, 1995, the Company had anticipated
media advertising expense in fiscal year 1995 of $10.0 million
and spent approximately $5.5 million in the first six months
resulting in a deferral of approximately $.5 million. The
anticipated Co-op commitments as of May 31, 1995 were $4.0
million of which $2.0 million were spent and, therefore, no
deferral resulted.
Selling, general and administrative expenses ("SG&A") de-
creased compared to the prior year both in real dollars and as a
percentage of sales. The decrease to 28% from 29% was due mostly
to reductions in payroll, commissions, and related costs coupled
with 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 May 31, 1996, net sales were
$10,498,104 as compared to $10,936,213 for May 31, 1995. Income
for the quarter before taxes increased to $852,700 from $424,694.
Gross margins of 62% for the three months ended May 31, 1996 were
down from 64% in 1995. Advertising, cooperative and promotional
allowance expense during the quarter decreased to $2,571,230 from
$3,424,439. Advertising expenses were 24% of sales for the
quarter in 1996 as compared to 31% in 1995. Selling, general and
administrative expenses were approximately 28% in the current
quarter as compared to 27% 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 May 31, 1996 consists
of current assets of $18,097,235 and current liabilities of
$9,320,204. During the six month period ended May 31, 1996,
shareholders' equity increased from $10,456,516 at November 30,
1995 to $11,439,038 at May 31, 1996. This was due primarily to
the net income generated for the period.
During the six months, the Company used $598,150 in opera-
tions,$154,078 to reduce borrowings, and $223,953 to purchase
fixed assets; but offset most of the cash requirements by liqui-
dation of short-term investments ($700,045) and the proceeds from
stock option exercises ($176,940). These factors coupled with a
small advance to officers ($4,917) resulted in a net decrease in
the Company's cash of $104,113.
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 May 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 Six Months Ended
May 31, May 31,
1996 1995 1996 1995
Item 6.
<S> <C> <C> <C> <C>
Primary:
Average shares outstanding 7,160,055 6,794,451 7,073,846 6,793,792
Net effect of dilutive stock
options--based on the
treasury stock method
using average market
price 1,002,282 1,193,742 879,313 1,221,069
TOTALS 8,162,337 7,988,193 7,953,159 8,014,861
Net income $ 464,585 $ 260,579 $ 832,745 $77,997
Per share amount $.06 $.03 $.10 $.01
</TABLE>
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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:
Ira W. Berman, Secretary
-17-
<PAGE>
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