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, 1997
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 - 6,058,621 shares as of August 31, 1997
Class A Common Stock, $.01 Par Value - 1,154,930 shares as of August 31, 1997
<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
INDEX
Page
Number
PART I FINANCIAL INFORMATION:
Consolidated Balance Sheets as of
August 31, 1997 and November 30, 1996. . . . . . . . . . . . 1-2
Consolidated Statements of Operations for the three
months and nine months ended August 31, 1997
and 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . . 3
Consolidated Statements of Cash Flows for
the nine months ended August 31, 1997
and 1996 . . . . . . . . . . . . . . . . . . . . . . . . . . 4-5
Notes to Consolidated Financial Statements . . . . . . . . . .6-12
Management Discussion and Analysis of
Results of Operations and Financial
Condition. . . . . . . . . . . . . . . . . . . . . . . . . 13-14
PART II OTHER INFORMATION. . . . . . . . . . . . . . . . . . . 15-16
SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . .17
<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
A S S E T S
August 31,
1997 November 30,
(Unaudited) 1996
Current Assets
Cash and cash equivalents $ 2,089,601 $ 1,422,783
Short-term investments and marketable
securities (Note 6) 1,253,412 1,546,289
Accounts receivable, net of allowances of
$1,182,885 and $1,072,432, respectively 4,878,723 4,017,500
Inventories 6,092,937 5,875,742
Prepaid expenses and sundry receivables 536,647 603,952
Deferred advertising costs (Note 2) 1,457,838 -
Due from officers - Current 1,500 3,900
Prepaid income taxes - 87,552
Deferred income taxes 436,864 496,267
Total Current Assets 16,747,522 14,053,985
Property and Equipment, net of accumulated
depreciation and amortization 536,948 729,706
Intangible Assets, net of accumulated
amortization of $45,143 at August 31, 1997
and $36,111 at November 30, 1996 166,453 155,037
Other Assets
Marketable securities 2,112,362 1,540,596
Treasury bonds 98,460 93,996
Due from officers - Non-current 65,250 25,250
Deferred income taxes 57,730 55,292
Other 53,867 54,217
Total Other Assets 2,387,669 1,769,351
Total Assets $19,838,592 $16,708,079
See Notes to Consolidated Financial Statements.
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CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
August 31,
1997 November 30,
(Unaudited) 1996
Current Liabilities
Notes payable - Current portion $ - $ 163,500
Accounts payable and accrued liabilities 6,346,122 4,794,865
Income taxes payable 44,827 25,505
Total Current Liabilities 6,390,949 4,983,870
Shareholders' Equity
Common stock, $.01 par; authorized
15,000,000 shares; issued and
outstanding 6,058,621 and 6,012,621
shares, respectively 60,586 60,126
Class A common stock, $.01 par; authorized
5,000,000 shares; issued and outstanding
1,154,930 shares, respectively 11,549 11,549
Additional paid-in capital 4,454,764 4,455,224
Retained earnings 8,959,129 7,216,163
Unrealized (losses) on marketable
securities ( 20,416) ( 6,353)
13,465,612 11,736,709
Less: Treasury Stock (7,500 and 5,000
shares at August 31, 1997 and
November 30, 1996, respectively) 17,969 12,500
Total Shareholders' Equity 13,447,643 11,724,209
Total Liabilities and Shareholders' Equity $19,838,592 $16,708,079
See Notes to Consolidated Financial Statements.
<PAGE>
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CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Ended Nine Months Ended
August 31, August 31,
1997 1996 1997 1996
Revenues
Sales of health
and beauty
products, net $10,227,594 $10,232,749 $29,397,295 $30,855,971
Other income 81,609 51,239 235,772 165,330
10,309,203 10,283,988 29,633,067 31,021,301
Costs and Expenses
Costs of sales 3,850,509 3,872,840 10,867,142 11,730,860
Selling, general and
administrative
expenses 3,257,666 2,514,954 8,917,456 8,296,401
Advertising,
cooperative
and promotions 1,814,930 3,475,998 6,326,381 8,656,522
Research and
development 215,102 100,478 550,282 367,169
Provision for doubtful
accounts ( 12,485) 13,809 53,911 111,803
Interest expense 750 11,291 5,656 45,353
9,126,472 9,989,370 26,720,828 29,208,108
Net Income before
Income Taxes 1,182,731 294,618 2,912,239 1,813,193
Provision for Income
Taxes 456,478 142,502 1,169,273 828,332
Net Income $ 726,253 $ 152,116 $ 1,742,966 $ 984,861
Income Per Common
Share (Note 2):
Net income from
operations $.09 $.02 $.22 $.12
See notes to Financial Statements.
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CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE NINE MONTHS ENDED AUGUST 31,
(UNAUDITED)
1997 1996
Cash Flows from Operating Activities:
Net income $1,742,966 $ 984,861
Adjustments to reconcile net income
to net cash (used in) provided by
operating activities:
Depreciation and amortization 277,646 289,874
Amortization of bond premium 1,994 1,792
Gain on sale of securities ( 5,693)( 6,684)
Gain on sale of machinery 6,701 -
Decrease in deferred income taxes 56,965 29,354
(Increase) in accounts receivable ( 861,223) ( 1,680,395)
(Increase) in inventory ( 217,195) ( 629,791)
(Increase) in deferred expenses and
miscellaneous receivable ( 1,390,533) ( 1,483,281)
Increase in accounts payable
and accrued liabilities 1,551,257 127,281
Increase in taxes payable 106,874 772,733
Decrease in security deposits 350 9,681
Net Cash Provided by (Used in)
Operating Activities 1,270,109 ( 1,584,575)
Cash Flows from Investing Activities:
Acquisition of property, plant and equipment ( 143,965 ) ( 327,597)
Purchase of short-term investments and
securities ( 2,749,685) ( 109,961)
Advances of money to officers ( 40,000)( 54,890)
Proceeds of money due from officers 2,400 54,912
Proceeds from sale of equipment 40,960 -
Proceeds from sale of investments 2,455,968 1,245,448
Purchase of treasury stock ( 5,469) -
Net Cash (Used in) Provided by
Investing Activities ( 439,791) 807,912
Cash Flows from Financing Activities:
Proceeds from borrowings - 1,000,000
Payment on debt ( 163,500) ( 636,645)
Proceeds from stock options exercises - 176,940
Net Cash (Used in) Provided by
Financing Activities ( 163,500) 540,295
Net Increase (Decrease) in Cash 666,818 ( 236,368)
Cash at Beginning of Period 1,422,783 312,150
Cash at End of Period $2,089,601 $ 75,782
See notes to Financial Statements.
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CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
FOR THE NINE MONTHS ENDED AUGUST 31,
(UNAUDITED)
1997 1996
Supplemental Disclosures of Cash Flow
Information:
Cash paid during the period for:
Interest $ 6,793 $ 48,600
Income taxes 1,052,850 27,315
Supplemental Schedule of Noncash Investing
and Financing Activities:
The Company issued common stock in
exchange for exercise of options and
surrender of options and surrender of
outstanding shares of stock:
Common stock retired $ 30,000 $ -
Common stock issued ( 30,000) -
$ - $ -
See Notes to Consolidated Financial Statements.
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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. Operat
ing results for the nine month period ended August 31, 1997 are not
necessarily indicative of the results that may be expected for the year
ended November 30, 1997. 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,
1996.
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Principles of Consolidation:
The consolidated financial statements include the accounts of the Com
pany 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.
Use of Estimates
The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates
and assumptions that affect the reported amounts of assets and liabilities
and disclosures of contingent assets and liabilities at the date of the
financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those esti
mates.
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 dis
poses 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 ex
penses are amortized on the straight-line method over five (5) years.
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<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
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.
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,
1997 1996
Raw materials $4,010,262 $4,065,961
Finished goods 2,082,675 1,809,781
$6,092,937 $5,875,742
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 $1,457,838 is accordingly reflected
in the balance sheet for the interim period. This deferral is the result of
the Company's $5,200,000 media budget for the year which contem
plates 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:
1997 1996
(In Millions) (In Millions)
Media advertising budget for the fiscal year $5.2 $8.0
Pro-rata portion for nine months $3.9 $6.0
Media advertising spent 5.0 7.1
Accrual (Deferral) ($1.1) ($1.1)
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<PAGE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
NOTE 4: DEFERRED ADVERTISING (Continued)
1997 1996
(In Millions) (In Millions)
Anticipated Co-op advertising commitments $3.00 $3.40
Pro-rata portion for nine months $2.25 $2.50
Co-op advertising spent 2.60 2.90
Accrual (Deferral) ($ .35) ($ .40)
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,
1997 1996
a) Media advertising $1,900 $ *
b) Coop advertising 505 321
c) Accrued returns 585 505
d) Bonuses 450 *
$3,440 $826
All other liabilities were for trade payables or individually did not exceed
5% of total current liabilities.
* under 5%
NOTE 6: OTHER INCOME
Other income consists of the following at August 31, 1997 and 1996:
1997 1996
Interest income $216,761 $150,109
Dividend income 13,318 8,474
Miscellaneous 5,693 6,747
$235,772 $165,330
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 share
holders' equity. Prior to 1994, the Company reported marketable securi
ties at the lower of cost or market value; unrealized losses were charged
to earnings.
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<TABLE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 7 - SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
The market value at August 31, 1997 was $3,464,234 as compared to $3,180,881 at November 30, 1996. The cost
and market values of the investments at August 31, 1997 were as follows:
<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 MaturityInterest 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 $ 99,113 $ 99,113
Tennessee Valley 3/04/98 5.125 100,000 100,000 99,688 99,688
Florida Power & Light 7/01/99 6.230 300,000 295,776 296,334 296,334
Virginia Electric & Power 4/01/00 6.481 250,000 246,117 246,918 246,918
$740,899 $742,053 $742,053
</TABLE>
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<TABLE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 7 - 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 MaturityInterest 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 $ 98,750 $ 98,750
US Treasury Note 10/31/98 4.750 200,000 199,992 197,500 197,500
US Treasury Note 10/15/98 7.125 250,000 250,000 253,518 253,518
US Treasury Note 4/30/98 5.125 190,000 189,883 189,346 189,346
US Treasury Note 4/30/98 5.125 10,000 9,992 9,966 9,966
US Treasury Note 7/31/98 5.250 250,000 249,834 248,985 248,985
US Treasury Note 2/28/99 5.885 250,000 249,953 249,923 249,923
US Treasury Note 11/15/99 6.026 250,000 249,141 249,298 249,298
US Treasury Note 1/31/98 5.125 200,000 199,695 199,500 199,500
US Treasury Zero Coupon 8/15/99 5.920 148,000 132,075 131,969 131,969
US Treasury Zero Coupon 5/15/98 5.410 215,000 207,192 206,813 206,813
</TABLE>
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<TABLE>
CCA INDUSTRIES, INC. AND SUBSIDIARIES
MARKETABLE SECURITIES - OTHER INVESTMENTS
NOTE 7 - 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 MaturityInterest 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>
FHLMC 1628-N 12/15/2023 6.500% 50,000 $ 48,024 $ 44,956 $ 44,956
EE Bonds - 7.180 90,000 98,460 98,460 98,460
FNMA 93-G-26-B 8/25/2022 7.000 10,000 7,828 7,694 7,694
FNMA 93-224-D 11/25/2023 6.500 104,000 101,873 91,274 91,274
FNMA 92-2-N 1/25/2024 6.500 52,000 47,424 43,652 43,652
FHLMC 1702-U 3/24/2024 7.000 4,000 2,751 2,639 2,639
FNMA 11/10/98 5.050 200,000 199,950 197,938 197,938
2,543,751 2,522,181 2,522,181
EQUITY SECURITIES:
Number of
Shares
Preferred Stock:
Bank America Corp. 8,000 200,000 200,000 200,000
$3,484,650 $3,464,234 $3,464,234
</TABLE>
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CCA INDUSTRIES, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
(UNAUDITED)
For the nine month period ended August 31, 1997, the Company had net sales
of $29,397,295 and net income of $1,742,966 after a provision for income taxes
of $1,169,273, as compared to net sales of $30,855,971 and net income of
$984,861 after a provision for income taxes of $828,332 for the nine month
period ended August 31, 1996. Gross margins of 63% for the nine months were
better than the 62% margins realized for the nine months in 1996 due to the
higher percentage overhead costs (added into the cost of goods) represented in
the total cost of goods in 1996, as well as certain product mix fluctuating.
Advertising, cooperative and promotional allowance expenditures decreased
during the nine month period from $8,656,522 to $6,326,381. Advertising
expenditures were 21.5% of sales for the nine months ended August 31, 1997
as compared with 28% for the period ended August 31, 1996. 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
he 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 $1.45 million is accordingly reflected in the balance sheet for
the interim period. This deferral is the result of the Company's $5.2 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 $5 million in the
first nine months on media advertising and, therefore, expensed $3.9 million
and deferred $1.1 million as of August 31, 1997. Similarly, as of August 31,
1997 theCompany's Co-op advertising commitments for the year ending November
30, 1997 totaled approximately $3 million of which $2.6 million was spent in
the first nine months resulting in an expense of $2.25 million and a deferral
of approximately $.35 million as of August 31, 1997.
Comparatively as of August 31, 1996, the Company had anticipated media
advertising expense in fiscal year 1996 of $8 million and spent approximately
$7.1 million in the first nine months resulting in a deferral of approximately
$1.1 million. The anticipated Co-op commitments as of August 31, 1996 were
$3.4 million of which $2.9 million was spent resulting in a deferral of $.4
million.
Selling, general and administrative expenses ("SG&A") increased as a percent
age of sales compared to the prior year. The increase to 30% from 27% was due
partly to the lower sales volume, and partly to the lower allocation of
overhead costs to costs of goods sold in 1997. Specifically, the increase
was mostly due to increased consulting and personnel costs related to health
costs and bonuses based on the higher profit margin for the period.
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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, 1997, net sales were
$10,227,594 as compared to $10,232,749 for August 31, 1996. Income for the
quarter before taxes increased to $1,182,731 from $294,618. Gross margins of
62% for the three months ended August 31, 1997 were approximately the same as
1996. Advertising, cooperative and promotional allowance expense during the
quarter decreased to $1,814,930 from $3,475,998. Advertising expenses were
17.75% of sales for the quarter in 1997 as compared to 34% in 1996. Selling,
general and administrative expenses were approximately 32% in the current
quarter as compared to 25% in 1996. This was primarily due to the accrual of
bonuses for the year based on the higher profit margin of the Company.
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, 1997 consists of current
assets of $16,747,522 and current liabilities of $6,390,949. During the nine
month period ended August 31, 1997, shareholders' equity increased from
$11,724,209 at November 30, 1996 to $13,447,643 at August 31, 1997. This
was due primarily to the net income generated for the period.
During the six months, the Company generated $1,270,000 from operations,
used $163,500 to reduce borrowings, and $144,000 to purchase fixed assets.
These factors coupled with the sale of equipment of $40,000 and the use of cash
for the net increase of the Company's investments of approximately $295,000
resulted in an increase in the Company's cash of about $667,000.
The Company believes that its current financial condition is sufficient to
support its proposed operations for the near future.
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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, 1997.
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PART II, ITEM 6. (Continued) EXHIBIT 11
CCA INDUSTRIES, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(UNAUDITED)
Three Months Ended Nine Months Ended
August 31, August 31,
1997 1996 1997 1996
Item 6.
Primary:
Average shares
outstanding 7,206,051 7,168,751 7,217,952 7,105,596
Net effect of dilutive stock
options--based on the
treasury stock method
using average market
price 916,688 663,557 874,908 898,599
TOTALS 8,122,739 7,832,308 8,092,860 8,004,195
Net income $ 726,253 $ 152,116 $1,742,966 $ 984,861
Per share amount $.09 $.02 $.22 $.12
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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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<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 9-MOS
<FISCAL-YEAR-END> NOV-30-1997 NOV-30-1997
<PERIOD-END> AUG-31-1997 AUG-31-1997
<CASH> 2,089,602 2,089,602
<SECURITIES> 3,464,234 3,464,234
<RECEIVABLES> 6,061,608 6,061,608
<ALLOWANCES> 1,182,885 1,182,885
<INVENTORY> 6,092,937 6,092,937
<CURRENT-ASSETS> 16,747,522 17,747,522
<PP&E> 2,425,521 2,425,521
<DEPRECIATION> 1,722,120 1,772,120
<TOTAL-ASSETS> 19,838,592 19,838,592
<CURRENT-LIABILITIES> 6,390,949 6,390,949
<BONDS> 0 0
0 0
0 0
<COMMON> 72,060 72,060
<OTHER-SE> 13,375,583 13,375,583
<TOTAL-LIABILITY-AND-EQUITY> 19,838,592 19,838,592
<SALES> 10,227,594 29,397,295
<TOTAL-REVENUES> 10,309,203 29,633,067
<CGS> 3,850,509 10,867,142
<TOTAL-COSTS> 9,126,472 26,720,828
<OTHER-EXPENSES> 5,287,698 15,974,119
<LOSS-PROVISION> (12,485) 53,911
<INTEREST-EXPENSE> 750 5,656
<INCOME-PRETAX> 1,182,731 2,912,239
<INCOME-TAX> 456,478 1,169,273
<INCOME-CONTINUING> 726,253 1,742,966
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 726,253 1,742,966
<EPS-PRIMARY> .09 .22
<EPS-DILUTED> .09 .22
</TABLE>
