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, 2007

 

Commission File Number 1-31643

 

                                                           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

 

 

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   _____

 

Indicate by check mark whether the Registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act).     Yes______   No     X

 

                     Common Stock, $.01 Par Value –  6,086,740 shares as of August 31, 2007

 

                            Class A Common Stock, $.01 Par Value –   967,702 shares as of

                                                                  August 31, 2007


 

 

 

 

 

CCA INDUSTRIES, INC. AND SUBSIDIARIES

 

INDEX

 

 

 

 

Page

 

 

Number

 

 

 

 

PART I FINANCIAL INFORMATION:

 

 

 

 

 

Item1. Financial Statements:

 

 

 

 

 

Consolidated Balance Sheets as of

 

 

  August 31, 2007 and November 30, 2006

2-3

 

 

 

 

Consolidated Statements of Income

 

 

  for the three and nine months ended August 31, 2007 and 2006

4

 

 

 

 

Consolidated Statements of Comprehensive Income

 

 

  for the three and nine months ended August 31, 2007 and 2006

5

 

  

 

 

Consolidated Statements of Cash Flows for

 

 

  the nine months ended August 31, 2007 and 2006

6

 

 

 

 

Notes to Consolidated Financial Statements

7-17

 

 

 

 

Item 2.  Management Discussion and Analysis of

 

 

              Results of Operations and Financial

 

 

              Condition

18-20

 

Item 3.  Quantitative and Qualitative Disclosures about

 

 

              Market Risk

21

 

Item 4.  Controls and Procedures

21

 

 

 

 

PART II OTHER INFORMATION

22-23

 

 

 

 

Item 1.  Legal Proceedings

 

 

Item 4.  Submission of Matters to a Vote of Security

 

 

               Holders

 

 

Item 5.  Other Information

 

 

Item 6.  Exhibits and Reports on Form 8-K

 

 

 

 

 

SIGNATURES

24

 

 

 

 

 

 

 


 

CCA INDUSTRIES, INC. AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

 

 

A S S E T S

 

 

                                                                                                                                                                                                                                                                                                         

 

August 31,

November 30,

 

 

    

2007

2006

 

 

 

(Unaudited)

 

 

 

   

 

 

 

 

Current Assets

 

 

 

 

  Cash and cash equivalents

$   4,236,161

$  4,385,340

 

 

  Short-term investments and marketable

 

 

 

 

    securities

12,514,789

11,516,349

 

 

  Accounts receivable, net of allowances of

 

 

 

 

    $952,841 and $1,026,197, respectively

  7,089,788

7,188,197

 

 

  Inventories

7,646,480

6,350,013

 

 

  Prepaid expenses and sundry receivables

565,476

684,875

 

 

  Deferred income taxes 

977,514

1,180,472

 

 

  Prepaid income taxes and refunds due

       747,086

                  -

   

 

 

 

 

 

    Total Current Assets

  33,777,294

  31,305,246

 

 

 

 

 

 

 

Property and Equipment, net of accumulated

 

 

 

 

  depreciation and amortization

       577,026

       561,634

 

 

 

 

 

 

 

Intangible Assets, net of accumulated

 

 

 

 

  amortization

       498,672

       503,595

 

 

 

 

 

 

 

Other Assets

 

 

 

 

  Marketable securities

3,243,113

  4,073,656

 

 

  Deferred taxes

     29,475

24,940

 

 

  Other

           47,500

         47,500

 

 

 

 

 

 

 

    Total Other Assets

    3,320,088

    4,146,096

   

 

 

 

 

 

    Total Assets

$38,173,080

$36,516,571

 

 

 

   See Notes to Consolidated Financial Statements.

 

 

-2-



CCA INDUSTRIES, INC. AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

 

                                                                              

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

August 31,

November 30,

 

 

2007

2006

 

 

(Unaudited)

 

 

Current Liabilities

 

 

 

  Accounts payable and accrued liabilities

$  7,798,393

$  8,104,424

 

  Capitalized lease obligation – current portion

48,240

-

  Income tax payable

              -

413,869

  Dividends payable

        493,811

                   490,970

 

 

 

    Total Current Liabilities

     8,340,444

    9,009,263

 

 

 

Capitalized lease obligations-long term

        127,624

       122,517

 

 

 

    Total Liabilities

     8,468,068

    9,131,780

 

 

 

Shareholders' Equity

 

 

  Preferred stock, $1.00 par; authorized

 

 

    20,000,000 shares; none issued

 

 

  Common stock, $.01 par; authorized

 

 

    15,000,000 shares; 6,086,740 and

 

 

    6,034,651 shares issued, respectively

60,867

60,346

  Class A common stock, $.01 par; authorized

 

 

    5,000,000 shares;  967,702 and 967,702 shares

 

 

      issued, respectively

9,677

9,677

  Additional paid-in capital

2,329,049

2,329,570

  Retained earnings

27,473,468

25,112,331

  Unrealized (losses) on marketable

 

 

    Securities

(       168,049)

(       127,133)

 

 

 

    Total Shareholders' Equity

        29,705,012  

        27,384,791

 

 

 

    Total Liabilities and Shareholders' Equity

$38,173,080

  $36,516,571

 

 

See Notes to Consolidated Financial Statements.

 

 

 

 

 

 

 

 

-3-



   CCA INDUSTRIES, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF OPERATIONS

 

(UNAUDITED)

      

Three

 Months Ended 

Nine Months

 Ended

        

 

August 31,

August

 31,

 

2007

2006

2007

2006

Revenues

 

 

 

 

  Sales of health and beauty

 

 

 

 

    aid products – Net

  $13,939,369

$15,788,172

  $45,746,254

$48,909,273

  Other income

       326,714

       208,516

       804,970

            593,699

 

 

 

 

 

    Total Revenues

  14,266,083

  15,996,688

      46,551,224

   49,502,972

 

 

 

 

 

Costs and Expenses

 

 

 

 

  Costs of sales

4,933,134

4,993,420

16,679,316

17,008,024

  Selling, general and

 

 

 

 

    administrative expenses

5,529,709

5,988,578

15,457,921

16,530,484

  Advertising, cooperative

 

 

 

 

    and promotions

  147,267

1,914,682

6,616,182

8,064,139

  Research and development

143,034

156,850

427,115

366,377

  Provision for doubtful

 

 

 

 

    Accounts

            30,296

          11,858

             9,313

       54,954

  Interest expense

          3,569

               68

         23,442

                68

 

 

 

 

 

 

10,787,009

13,065,456

39,213,289

42,024,046

 

 

 

 

 

  Transaction Costs

                  -

                      -

             717,850

                     -

 

 

 

 

 

    Total Costs and Expenses

  10,787,009

  13,065,456

  39,931,139

    42,024,046

 

 

 

 

 

Income before Provision for

 

 

 

 

  Income Taxes

3,479,074

2,931,232

6,620,085

7,478,926

 

 

 

 

 

Provision for Income Taxes

    1,409,470

         1,003,756

        2,784,809

       2,775,564

 

 

 

 

 

Net Income

$  2,069,604

$  1,927,476

$  3,835,276

$  4,703,362

 

 

 

 

 

Earnings per Share:

 

 

 

 

  Basic

$ 0.29

  $ 0.28

$ 0.55

$ 0.67

  Diluted

  $ 0.29

  $ 0.27

$ 0.54

$ 0.66

 

 

 

 

 

Number of Common Shares:

 

 

 

 

  Weighted average shares

 

 

 

 

    outstanding – Basic

7,054,442

6,981,224

7,021,364

7,048,902

  Weighted average and

 

 

 

 

     potential dilutive

 

 

 

 

     outstanding

  7,074,796

7,079,258

7,052,437

       7,157,101

 

See Notes to Consolidated Financial Statements.

-4-



CCA INDUSTRIES, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

(UNAUDITED)

                                                         

 

                                                                       

 

Three Months

 Ended

Nine Months

 Ended

 

August 

31,

August

 31,

 

2007

2006

2007

2006

 

 

 

 

     

 

 

 

 

 

 

 

 

 

 

Net Income

$ 2,069,604

$ 1,927,476

$ 3,835,276

$ 4,703,362

 

 

 

 

 

Other Comprehensive Income

 

 

 

 

  Unrealized holding gains (losses)

 

 

 

 

    on investments

      (      40,650)

        154,115

(     40,916)

        151,129

 

 

 

 

 

Comprehensive Income

$2,028,954

$2,081,591

$3,794,360

$4,854,491

 

 

 

 

 

 

 

 

 

 

Earnings Per Share:

 

 

 

 

  Basic

$ 0.29

$ 0.30

$ 0.54

$ 0.69

  Diluted

$ 0.29

$ 0.29

$ 0.54

$ 0.68

 

 

 

 

 

 

 

 

 

 

Number of Common Shares:

 

 

 

 

  Weighted average shares

 

 

 

 

    outstanding – Basic

7,054,442

6,981,224

7,021,364

7,048,902

  Weighted average and

 

 

 

 

    potential dilutive outstanding

7,074,796

7,079,258

7,052,437

7,157,101

 

 

 

 

 

 

 

 

 

 

See Notes to Consolidated Financial Statements.

 

 

 

 

-5-

 


CCA INDUSTRIES, INC. AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

 

(UNAUDITED)

 

 

Nine Months

Ended

         

 

August 31,

August 31,

         

 

2007

2006

         

Cash Flows from Operating Activities:

 

 

         

  Net income

$  3,835,276

$4,703,362

         

  Adjustments to reconcile net income to net cash

 

 

         

    provided by   operating activities:

 

 

         

  Depreciation and amortization

198,089

206,007

         

  Loss on write off of fixed assets

4,949

59,509

         

  (Gain) on sale of securities

  (        34,076)

(      32,354)

         

  Decrease (increase) in deferred income taxes

       198,423

(    356,697)

         

  Decrease in accounts receivable

      98,409

       528,869

         

  (Increase) in inventory

(   1,296,467)

( 1,121,231)

         

  Decrease (increase) in prepaid expenses                                              

 

 

         

      and miscellaneous receivables

119,400

(      37,496)

         

  (Increase) decrease in prepaid income                                                                  

 

 

         

      taxes and refunds due

(     747,087)

165,560

         

  (Decrease) in other assets

-

(      4,690)

         

  (Decrease) increase in accounts payable and accrued                                             

 

 

         

      liabilities

     (     306,031)

    567,340

         

  (Decrease) increase in income taxes payable

     (      413,869)

        616,268

         

 

 

 

         

    Net Cash Provided by Operating Activities

          1,657,016

   5,294,444

         
               

Cash Flows from Investing Activities:

 

 

         

  Acquisition of property, plant and equipment

(      212,985)

(     134,279)

         

  Acquisition of intangible assets

  (              522)

  (      21,749)

         

  Purchase of marketable securities

( 12,644,422)

  ( 8,306,466)

         

  Proceeds from sale and maturity of                                                                           

 

 

         

    investments

  12,469,685

       6,512,308

         
               

    Net Cash (Used in) Investing Activities

  (      388,244)

  (  1,950,186)

         
               

Cash Flows from Financing Activities:

 

 

         

  Purchase and retirement of common shares

  -

  (  2,822,766)

         

  Proceeds from exercise of stock options

-

47,750

         

  Increase in capital lease obligation

80,036

-

         

  Payments in capital lease obligation

(         26,689)

         

  Dividends paid

    (   1,471,300)

   (  1,288,539)

         
               

    Net Cash (Used in) Financing Activities

(   1,417,953)

  (  4,063,555)

         
               

Net (Decrease) in Cash

(      149,180)

(     719,297)

         
               

Cash and Cash Equivalents at Beginning of Period

    4,385,340

    3,536,542

         
               

Cash and Cash Equivalents at End of Period

  $  4,236,160

$ 2,817,245

         
               

Supplemental Disclosures of Cash Flow Information:                                                            

 

 

         

  Cash paid during the period for:                                                                            

 

 

         

    Interest

$        23,442

$             68

         

    Income taxes

3,731,618

2,512,853

 

 

 

 

 

               

Schedule of Non Cash Financing Activities:                                                                   

 

 

 

 

 

 

 

  Dividends declared and accrued

$  1,474,141

$1,202,199

 

 

 

 

 

  Issuance of 55,000 shares of common stock upon exercise of stock

 

 

 

 

 

 

 

     options, net of 2,911 share cancellations:

 

 

 

 

 

 

 

  Common stock

521

193

 

 

 

 

 

  Additional paid-in capital

(            521)

7,450

 

 

 

 

 

  Retained earnings

-

161,256

 

 

 

 

 

 

See Notes to Consolidated Financial Statements.

-6-



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, 2007 are not necessarily indicative of the results that may be expected for the year ended November 30, 2007.  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, 2006.  The accompanying unaudited condensed consolidated financial statements, in the opinion of management, include all adjustments necessary for a fair presentation.  All such adjustments are of a normal reoccurring nature.

 

NOTE 2 -      ORGANIZATION AND DESCRIPTION OF BUSINESS

 

CCA Industries, Inc. (“CCA”) was incorporated in the State of Delaware on March 25, 1983.

 

CCA manufactures and distributes health and beauty aid products.

 

CCA has several wholly-owned subsidiaries, CCA Cosmetics, Inc., CCA Labs, Inc., Berdell, Inc., Nutra Care Corporation, CCA Online Industries, Inc., and CCA Industries Canada (2003) Inc., all of which are currently inactive.

 

NOTE 3 -      SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Principles of Consolidation:

 

The consolidated financial statements include the accounts of CCA and its wholly-owned subsidiaries (collectively the “Company”).  All significant inter-company accounts and transactions have been eliminated.

 

 

 

 

-7-



CCA INDUSTRIES, INC. AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

(UNAUDITED)

 

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Estimates and Assumptions:

 

The consolidated financial statements include the use of estimates, which management believes are reasonable.  The process of preparing financial statements in conformity with accounting principles generally accepted in the United States of America requires the use of estimates and assumptions regarding certain types of assets, liabilities, revenues, and expenses.  Such estimates primarily relate to unsettled transactions and events as of the date of the financial statements.  Accordingly, upon settlement, actual results may differ from estimated amounts.

 

Other Comprehensive Income:

 

Total comprehensive income includes changes in equity that are excluded from the consolidated statement of operations and are recorded directly into a separate section of consolidated statements of comprehensive income.  The Company’s accumulated other comprehensive income shown on the consolidated balance sheet consist of unrealized gains and losses on investment holdings net of any tax consequence.

 

Short-Term Investments and Marketable Securities:

 

Short-term investments and marketable securities consist of corporate and government bonds 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, and on the Statement of Comprehensive Income.

 

Statements of Cash Flows Disclosure:

 

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.

 

During the nine months ended August 31, 2006, the Company purchased and retired an aggregate of 225,000 shares of common stock from three officer/directors, David Edell – 100,000, Ira Berman – 100,000 and Drew Edell – 25,000.  The purchase price was $10.50 discounted from $10.82, the closing price at the close of business on the transaction date. In addition, three officer/directors exercised in the aggregate 70,500 options, David Edell – 22,500, Ira Berman – 28,000 and Dunnan Edell – 20,000. 

 

For the nine months ended August 31, 2007, dividends declared were $1,474,141 and dividends paid were in the amount of $1,471,300, of which $490,970 pertains to fiscal year ended November 30, 2006.  In addition, an officer, Dunnan Edell, exercised 55,000 options.

-8-



CCA INDUSTRIES, INC. AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

(UNAUDITED)

 

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Accounts Receivable:

 

Accounts receivable consist of trade receivables recorded at original invoice amount, less an estimated allowance for uncollectible amounts. The accounts receivable balance is further reduced by allowances for coop advertising and reserves for returns which are anticipated to be taken as credits against the balances as of August 31, 2007. The allowances and reserves which are anticipated to be deducted from future invoices are included in accrued liabilities. Trade credit is generally extended on a short term basis; thus trade receivables do not bear interest, although a finance charge may be applied to receivables that are past due.  Trade receivables are periodically evaluated for collectibility based on past credit history with customers and their current financial condition.  Changes in the estimate collectibility of trade receivables are recorded in the results of operations for the period in which the estimate is revised.  Trade receivables that are deemed uncollectible are offset against the allowance for uncollectible accounts.  The Company generally does not require collateral for trade receivables.

 

Inventories:

 

Inventories are stated at the lower of cost (first-in, first-out) or market.

 

Product returns that are resaleable 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.

 

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                                                                     5-7 Years

Furniture and fixtures                                                                          3-10 Years

Tools, dies and masters                                                                           3 Years

Transportation equipment                                                                         5 Years

Leasehold improvements                                            Remaining life of the lease

                                                                                       (ranging from 1-9 years)

 

-9-



CCA INDUSTRIES, INC. AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

(UNAUDITED)

 

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Intangible Assets:

 

Intangible assets are stated at cost.  Patents are amortized on the straight-line method over a period of 17 years.  Such intangible assets are reviewed for potential impairment whenever events or circumstances indicate that carrying amounts may not be recoverable.

 

Financial Instruments:

 

The carrying value of assets and liabilities considered financial instruments approximate their respective fair value.

 

Income Taxes:

 

Income tax expense includes federal and state taxes currently payable and deferred taxes arising from temporary differences between income for financial reporting and income tax purposes.

 

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 Common Share:

 

Basic earnings per share are calculated using the average number of shares of common stock outstanding during the period.  Diluted earnings per share is computed on the basis of the average number of common shares outstanding plus the effect of outstanding stock options using the “treasury stock method”.  Common stock equivalents consist of stock options.

 

Revenue Recognition:

 

The Company recognizes sales upon shipment of merchandise.  Net sales comprise gross revenues less expected returns, trade discounts, customer allowances and various sales incentives.  Although no legal right of return exists between the customer and the Company, it is an industry-wide practice to accept returns from customers.  The Company, therefore, records a reserve for returns equal to its gross profit on its historical percentage of returns. Those returns which are anticipated to be taken as credits against the balances as of August 31, 2007 are offset against the accounts receivable. The reserves which are anticipated to be deducted from future invoices are included in accrued liabilities.

 

-10-


CCA INDUSTRIES, INC. AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

 (UNAUDITED)

 

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

 

Sales Incentives:

 

The Company has accounted for certain sales incentives offered to customers by charging them directly to sales as opposed to “advertising and promotional” expense.  Had EITF 00-14 not been adopted, net sales for the three months ended August 31, 2007 and 2006 would have been $15,364,335 and $16,857,538 respectively.  Net sales for the nine months ended August 31, 2007 and 2006 would have been $49,678,830 and $52,390,246, respectively.  In the fourth quarter of 2006, the Company reclassified certain promotional expenses from sales expense to a charge against sales for fiscal 2006.  Those same expenses were reclassified for the three and nine month period ended August 31, 2007 and 2006.  None of these changes affect net income reported for the interim periods ended August 31, 2007 and 2006.

 

Advertising Costs:

 

The Company’s policy for fiscal financial reporting is to charge advertising cost to operations as incurred. 

 

Shipping and Handling Costs:

 

The Company’s policy for fiscal financial reporting is to charge shipping costs as part of selling, general and administrative expense as incurred.  Freight costs included were $761,667 and $663,350 for the three months ended August 31, 2007 and 2006 respectively.  Freight costs included were $2,182,829 and $1,948,546 for the nine months ended August 31, 2007 and 2006, respectively.

 

Stock Options:

 

In December 2004, the Financial Accounting Standards Board (“FASB”) issued Statement of Financial Accounting Standards (“SFAS”) No. 123R, “Accounting for Share-Based Compensation” which is a revision of SFAS No. 123.  Effective for annual or interim periods beginning after December 15, 2005, SFAS No. 123R requires stock grants to employees to be recognized in the income statement based on   their fair values.  The adoption of SFAS No. 123R did not have any impact on the Company’s financial position, results of operations or cash flow.

 

                                                                                                                                                    

 

-11-


CCA INDUSTRIES, INC. AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

(UNAUDITED)

 

NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)

                                                                               

Recent Accounting Pronouncements:

 

In June 2006, the Financial Accounting Standards Board (“FASB”) issued FASB Interpretation No. 48 (“FIN No. 48”) “Accounting for Uncertainty in Income Taxes – an Interpretation of FASB No. 109”.  FIN No. No. 48 established a recognition threshold and measurement for income tax positions recognizes in an enterprise’s financial statements in accordance with FASB No. 109, “Accounting for Income Taxes”.  FIN No. 48 also prescribes a two-step evaluation process for tax positions. The first step is recognition and the second is measurement.  FIN No. 48 is effective for fiscal years beginning after December 15, 2006.   Accordingly, the Company plans to adopt FIN No. 48 on December 1, 2007.  The Company has not determined the impact if any, on the adoption of FIN No. 48.

 

In September 2006, the FASB issued Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“SFAS No. 157”).  SFAS No. 157 defines fair value, established a framework for measuring fair value in generally accepted accounting principles and expands disclosures about fair value measurements.  SFAS No. 157 applies under other accounting pronouncements that require or permit fair value measurements, the FASB previously concluded in those accounting pronouncements that fair value is the relevant measurement attribute.  SFAS No. 157 is effective for financial statements issued for fiscal years beginning after November 15, 2007, and interim periods in those fiscal years.  The Company has not determined the impact, if any, of the adoption of SFAS No. 157.

 

In September 2006, the FASB issued SFAS No. 158, Employers’ Accounting for Defined Benefit Pension and Other Postretirement Plans, an amendment of SFAS Statements Nos. 87, 88,106 and 132R.  SFAS No. 158, requires an employer to recognize the over-funded or under-funded status of a defined benefit postretirement plan as an asset or liability in its statement of financial position , measure a plan’s assets and obligations as of the end of the employer’s fiscal year-end and recognize changes in the funded status in the year in which the changes occur through comprehensive income.  SFAS No. 158 is effective as of the end of the fiscal year ending after December 15, 2007.  Since the Company does not have a defined benefit plan, the adoption will not have an impact on the Company’s financial statements.

 

In September 2006, the Securities and Exchange Commission (“SEC”) issued Staff Accounting Bulletin No. 108 (“SAB 108”) which provides interpretive guidance on how the effects of the carryover or reversal of prior year misstatements should be considered in quantifying a current year misstatement.  SAB 108 is effective for the first fiscal year ending after November 15, 2006 which will  be the fiscal year ending November 30, 2006.  The adoption of this statement had no material impact on the Company’s financial position or results of operations.

 

In February 2007, the FASB issued Statement of Financial Accounting Standards No. 159 (“SFAS No. 159”).  SFAS No 159, which amends SFAS No. 115 allows certain financial assets and liabilities to be recognized, at the Company’s election, at fair market value, with any gains or losses for the period recorded in the statement of income.  SFAS No. 159 included available-for-sales securities in the assets eligible for this treatment.  Currently, the Company records the gains or losses for the period in the statement of comprehensive income and in the equity section of the balance sheet.  SFAS No. 159 is effective for fiscal years beginning after November 15, 2007, and interim periods in those fiscal years.  The Company has not determined the impact, if any, of the adoption of SFAS No. 159.

 

 

-12-



CCA INDUSTRIES, INC. AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

(UNAUDITED)

 

 

 

 

NOTE 4 -      INVENTORIES

 

The components of inventory consist of the following:

 

 

 

August 31,

November 30,

 

 

 

 

2007

2006

 

 

           

Raw materials

 

$4,825,989

$3,822,073

 

 

Finished goods

 

  2,820,491

  2,527,940

 

 

 

 

$7,646,480

$6,350,013

 

 

 

 

 

 

 

 

 

At August 31, 2007 and November 30, 2006 the Company had a reserve for obsolescence of $ 704,350 and $777,715, respectively.

 

 

NOTE 5 -       PROPERTY AND EQUIPMENT

 

The components of property and equipment consisted of the following:

 

 

 

 

 

 

 

 

 

August 31,

November 30,

 

 

2007

2006

 

 

 

 

   

Machinery and equipment

 

$ 130,346

$  125,788

   

Furniture and equipment

 

858,572

825,928

   

Transportation equipment

 

10,918

10,918

   

Tools, dies, and masters

 

346,919

426,470

   

Capitalized lease obligations

 

242,254

162,218

   

Leasehold improvements

 

       293,927

       300,402

   

 

 

1,882,936

1,851,724

   

Less:  Accumulated depreciation

 

 

 

   

  and amortization

 

  1,305,910

  1,290,090

   

 

 

 

 

   

Property and Equipment – Net

 

$   577,026

$  561,634

   

 

Depreciation expense for the nine months ended August 31, 2007 and 2006 amounted to $192,644 and $184,996, respectively.

 

 

 

 

 

 

 

 

-13-



CCA INDUSTRIES, INC. AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

(UNAUDITED)

 

 

 

 

NOTE 6 -       INTANGIBLE ASSETS

 

Intangible assets consist of owned trademarks and patents for ten product lines covering thirty countries.   The cost and accumulated amortization is as follows:

 

 

August 31,

November 30,

 

 

2007

2006

 

 

 

 

 

Patents and trademarks

$650,798

$650,274

 

Less:  Accumulated amortization

  152,126

  146,679

 

Intangible Assets – Net

$498,672

$503,595

 

 

 

 

 

Patents are amortized on a straight-line basis over their legal life of 17 years and trademarks are adjusted to realizable value for each quarterly reporting period.

Amortization expense for the nine months ended August 31, 2007 and 2006 amounted to $5,445 and $80,520, respectively.  Estimated amortization expense for each quarter of the ensuing five years through August 31, 2012 is $1,900.

 

NOTE 7 -      SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES

 

Short-term investments and marketable securities, which consist of stock and various corporate and government obligations, are stated at market value.  The Company has classified its investments as Available-for-Sale securities and considers as current assets those investments which will mature or are likely to be sold in the next fiscal year. The remaining investments are considered non-current assets.  The cost and market values of the investments at August 31, 2007 and November 30, 2006 were as follows:

                                                       

                                                            August 31, 2007                    November 30, 2006

Current:

COST

MARKET

COST

MARKET

 

Corporate

 

 

 

 

 

  Obligations

$ 7,714,005

$ 7,709,972

$ 4,725,545

$ 4,712,154

 

Government

 

 

 

 

 

   Obligations

 

 

 

 

 

   (including mortgage

 

 

 

 

 

     backed securities)

Preferred Stock

  4,468,022

50,000

4,490,720

44,900

  6,519,395

-

  6,536,115

-

 

Common stock

51,649

57,372

  51,649

  56,508

 

Mutual funds

215,274

150,213

208,955

148,464

 

Other equity

 

 

 

 

 

   investments

           70,206

         61,612

          64,881

         63,108

 

      Total

   12,569,156

   12,514,789

   11,570,425

  11,516,349

 

                                                                                                                                                    

-14-


CCA INDUSTRIES, INC. AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

(UNAUDITED)

 

NOTE 7 -      SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)

 

                                                       COST            MARKET          COST              MARKET

Non-Current:

 

 

 

 

Corporate obligations

  $    400,000

$     400,000

$ 1,591,292

$ 1,571,928

Government obli-

 

 

 

 

  gations

  2,080,576

  2,021,453

1,630,576

1,583,524

  Preferred stock

  774,845

  721,660

  824,845

  818,204

Other equity invest-

 

 

 

 

  ments

         100,000

       100,000

       100,000

       100,000

 

 

 

 

 

    Total

    3,355,421

   3,243,113

    4,146,713

    4,073,656

 

 

 

 

 

    Total

$15,924,577

$15,757,902

$15,717,138

$15,590,005

 

NOTE 8 -      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,

 

 

2007

2006

 

 

(In Thousands)

(In Thousands)

 

 

 

 

a)

Coop advertising

$1,509

$1,372

b)

Accrued returns

1,167

1,489

c)

Accrued bonuses

      678 

     784

d)

Accrued vacation

       432

          *

   

 

$3,786

$3,645

* under 5%

 

All other liabilities were for trade payables or individually did not exceed 5% of total current liabilities.

 

NOTE 9 -      OTHER INCOME

 

Other income consists of the following:

 

 

Three Months

Ended

Nine Months

Ended

 

August

31,

August

31,

 

2007

2006

2007

2006

 

 

 

 

 

Interest and dividend

 

 

 

 

  income

$253,230

$171,401

$628,715

$460,322

Royalty income

24,000

31,944

94,467

87,249

Realized gain on sale

 

 

 

 

  of bonds

(1,151)

-

17,512

32,354

Miscellaneous

    50,635

     5,171

    64,276

    13,774

 

$326,714

$208,516

$804,970

$593,699

 

-15-


CCA INDUSTRIES, INC. AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

(UNAUDITED)

 

NOTE 10 -    NOTES PAYABLE

 

The Company has an available line of credit of $25,000,000.  Interest is calculated at the Company’s option, either on the outstanding balance at the prime rate minus 1% or Libor plus 150 basis points at the Company’s option.  The line of credit is unsecured as of August 31, 2007 and must adhere to certain financial covenants pertaining to net worth and debt coverage.  The Company was not utilizing their available credit line at August 31, 2007 and November 30, 2006.  The Company has extended the line of credit through August 31, 2008.

 

NOTE 11 -    COMMITMENTS AND CONTINGENCIES

 

Litigation

 

All of the Company’s litigation other than in the ordinary course of business has been dismissed.  Refer to Form 8-K, filed on May 8, 2007 with the United States Securities and Exchange Commission for further information.

 

Dividends and Capital Transactions

 

On September 26, 2007, the board of directors declared a $0.09 dividend for the four quarter ending November 30, 2007.  The dividend is payable to all shareholders of record on November 1, 2007, payable on December 1, 2007.

 

On June 22, 2007, the board of directors declared a $0.07 per share dividend for the third quarter ending August 31, 2007.  The dividend is payable to all shareholders of record on August 1, 2007 payable on September 1, 2007.

 

On April 12, 2007, the board of directors declared a $0.07 per share dividend for the second quarter ending May 31, 2007.  The dividend is payable to all shareholders of record on May 1, 2007 payable on June 1, 2007.

 

On December 28, 2006, the board of directors declared a $0.07 per share dividend for the first quarter ending February 28, 2007.  The dividend is payable to all shareholders of record on February 1, 2007 payable on March 1, 2007.

                                                                                     

On May 24, 2007, Dunnan Edell, an officer and director, exercised 55,000 options at $0.50 per share, and sold 2,911 shares at $9.45, the closing price as of May 23, 2007.

 

During the nine months ended August 31, 2006, the Company purchased and retired an aggregate of 225,000 shares of common stock from three officer/directors, David Edell – 100,000, Ira Berman – 100,000 and Drew Edell – 25,000.  The purchase price was $10.50 discounted from $10.82, the closing price at the close of business on the transaction date.   In addition, three officer/directors exercised in the aggregate 70,500 options, David Edell – 22,500, Ira Berman – 28,000 and Dunnan Edell – 20,000. 

 

                     

 

-16-


CCA INDUSTRIES, INC. AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

(UNAUDITED)

 

 

NOTE 12 -    401 (K) PLAN

 

The Company has adopted a 401(K) Profit Sharing Plan that all employees with over one year of service and attained age 21 are eligible to join.  Employees may make salary reduction contributions up to twenty-five percent of compensation not to exceed the federal government limits.  The Plan allows for the Company to make discretionary contributions.  For all fiscal periods to date, the Company did not make any contributions.

 

NOTE 13 -    RECENT DEVELOPMENTS

 

On November 1, 2006 the Company entered into a letter of intent with Dubilier and Company relating to a proposed acquisition of the Company by Dubilier.  A copy of the letter of intent was included as an exhibit to the Company’s 8K filed Report with the Securities and Exchange Commission on November 2, 2006.  The Company and Dubilier had reached an agreement in principle on a transaction pursuant to which Dubilier would acquire all of the outstanding common stock and Class A common stock of the Company at a price per share of $12.25.  The transaction was subject to, among other matters, the execution and delivery of a definitive merger agreement, approval of the transaction by CCA’s board of directors and shareholders, receipt of an opinion from an independent investment banking firm to the effect that the consideration to be paid by Dubilier is fair, from a financial point of view, to the public holders of the Company’s common stock, and Dubilier’s ability to obtain financing for the transaction.  On April 2, 2007, the Company received an opinion from an investment banking company that from a financial point of view, the proposed transaction is fair to all shareholders.  On April 10, 2007 the Company was advised by Dubilier that it was unable to obtain its’ financing, despite the fact that the Company had met all of its financial requirements of earnings before income tax, depreciation, and amortization, as well as net working capital.  The proposed transaction was formally terminated by the Company on April 10, 2007. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-17-

 



 

ITEM 2.      MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS

                    OF OPERATIONS AND FINANCIAL CONDITION (UNAUDITED)

 

 

Except for historical information contained herein, this “Management's Discussion and Analysis of Financial Condition and Results of Operations” contains forward-looking statements.  These statements involve known and unknown risks and uncertainties that may cause actual results or outcomes to be materially different from any future results, performances or achievements expressed or implied by such forward-looking statements, and statements which explicitly describe such issues.  Investors are urged to consider any statement labeled with the terms “believes,” “expects,” “intends’” or “anticipates” to be uncertain and forward-looking. 

 

For the three month period ended August 31, 2007, the Company had revenues of $14,266,083 and net income of $2,069,604 after provision for taxes of $1,409,470.  For the same quarter in 2006, revenues were $15,996,688 and net income was $1,927,476 after a provision for taxes of $1,003,756.  Earnings per share were $0.29 (diluted) for the three-month period ended August 31, 2007 as compared to earnings of $0.27 (diluted) for the same period in 2006.  Income before taxes for the three month period ended August 31, 2007 was $3,479,074 versus $2,931,232 for the same quarter in 2006.  In accordance with EITF 00-14, the Company has accounted for certain sales incentives offered to customers by charging them directly to sales as opposed to advertising and promotional expenses.  Net sales for the third quarter of 2007 were reduced by $1,424,966 and offset by an equal reduction of trade promotional expenses, which were included in the Company’s advertising expense budget. In the same period of the prior year, net sales were reduced by $1,069,366 and trade promotion was credited by that amount.  These accounting adjustments under EIFT 00-14 do not affect net income.  Sales incentives costs were $355,600 higher for the third quarter of this year as compared to the same period last year due to the increased promotion of the Company’s brands.

 

The Company’s net sales decreased from $15,788,172 for the three-month period ended August 31, 2006 to $13,939,369 for the three-month period ended August 31, 2007.    The decrease in net sales is attributable to discontinued products which are in the process of being replaced by new products.  Sales returns and allowances were 16.7% of gross sales for the three-month period ended August 31, 2007 versus 12.3% for the same period last year.   Sales returns and allowances were higher in part due to the return of products that were phased out and replaced by new items in the second quarter of 2007 and continuing into the third quarter, as well as the increase in sales incentives.  Gross profit margins decreased to 64.6% from 68.4% for the three months ended August 31, 2007 and 2006 respectively.  This was due to a combination of the effects of product mix and the increase in sales incentives and returns versus the same period last year.  

 

The Company’s gross sales net of returns by category for the three-month period ended August 31, 2007 were:  Skin Care $5,263,409, 33.9%; Dietary Supplement $4,680,260, 30.1%; Oral Care $3,528,118, 22.7%; Nail Care $1,499,582, 9.6%; Fragrance $285,806, 1.8%; and Miscellaneous $282,868, 1.9%; for a total of $15,540,043.  The Company makes every effort to control the cost of manufacturing and has had no substantial cost increases.  Returns and reserves accounted for $1,247,048 that was expensed against earnings for this quarter as opposed to $1,934,708 that was expensed during the third quarter of 2006.

 

 

 

 

 

 

 

-18-



 

ITEM 2.       MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS

                      OF OPERATIONS AND FINANCIAL CONDITION (UNAUDITED)

                      (CONTINUED)

 

 

Advertising media expenditures were $1,864,438 lower in the third quarter of 2007 versus the same period in 2006.  The selling, general and administrative expenses for the third quarter of 2007 decreased $458,868 to $5,529,710 from $5,988,578 in the third quarter 2006. 

 

For the nine month period ended August 31, 2007, the Company had revenues of $46,551,224 and net income of $3,835,276 after provision for taxes of $2,784,809.  For the same period in 2006, revenues were $49,502,972 and net income was $4,703,362 after a provision for taxes of $2,775,564.  The tax provision for the first nine months of 2006 as a percentage of pre-tax income was lower than the same period in 2007 due to an over accrual of the prior year’s taxes and additional deductions for charitable contributions.  Earnings per share were $0.54 (diluted) for the nine month period ended August 31, 2007 as compared to earnings of $0.66 (diluted) for the same period in 2006.  Earnings were impacted during the first nine months by transaction expenses related to the proposed acquisition of the Company by Dubilier as disclosed in Note 13.  Transaction expenses incurred during the nine month period ended August 31, 2007 were $717,850.  Income before taxes for the nine month period ended August 31, 2007 was $6,620,085.  Income before taxes on a pro-forma basis eliminating transaction expenses would have been $7,337,935 versus $7,478,926 for the nine month period ended August 31, 2006.  In accordance with EITF 00-14, the Company has accounted for certain sales incentives offered to customers by charging them directly to sales as opposed to advertising and promotional expenses.  Net sales for the nine months ended August 31, 2007 were reduced by $3,932,576 and offset by an equal reduction of trade promotional expenses, which were included in the Company’s advertising expense budget. In the same period of the prior year, net sales were reduced by $3,480,973 and trade promotion was credited by that amount.  These accounting adjustments under EIFT 00-14 do not affect net income.  Sales incentives costs were $451,603 higher for the nine months ended August 31, 2007 as compared to the same period last year due to the increased promotion of the Company’s brands.

 

The Company’s net sales decreased from $48,909,273 for the nine month period ended August 31, 2006 to $45,746,254 for the nine month period ended August 31, 2007.    Gross sales were $55,449,282 for the first nine months of 2007 versus $56,861,363 for the same period in 2006.  Gross sales were lower than anticipated due to Pound – X, a dietary supplement launched in the fourth quarter of 2006 not meeting the Company’s expectations. The decrease in net sales is attributable to higher sales incentives, and higher sales returns.  Sales returns and allowances were 16.4% of gross sales for the nine month period ended August 31, 2007 versus 10.5% for the same period last year.  Sales returns and allowances were higher in part due to the return of products that were phased out and replaced by new items beginning in the second quarter and continuing into the third quarter of 2007.  Gross profit margins decreased slightly to 63.5% from 65.2% for the nine months ended August 31, 2007 and 2006 respectively.  This was due to a combination of the effects of product mix and the increase in sales incentives and returns versus the same period last year. 

 

The Company’s gross sales net of returns and by category were:  Skin Care $15,422,469, 30.8%; Dietary Supplement $15,176,198, 30.3%; Oral Care $12,833,647, 25.6%; Nail Care $5,307,814, 10.6%; Fragrance $1,055,425, 2.1%; Hair Care $275,616, 0.6%; and Miscellaneous $(16,047), -0.0.0%; for a total of $50,055,122.  The Company makes every effort to control the cost of manufacturing and has had no substantial cost increases.  Returns and reserves accounted for $4,794,092 that was expensed against earnings for the first nine months of 2007, of which $468,667 was for Pound – X, versus $5,886,144 for the same period in 2006.

 

 

-19-



 

ITEM 2.       MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS

                      OF OPERATIONS AND FINANCIAL CONDITION (UNAUDITED)

                      (CONTINUED)

 

 

Advertising media expenditures were $1,671,820 lower in the first nine months of 2007 versus the same period in 2006.   They represented 12.2% of net sales for the nine months ended August 31, 2007 vs. 14.8% for the same period in 2006.  The selling, general and administrative expenses for the first nine months of 2007 decreased $1,072,563 to $15,457,921 from $16,530,484 in the first nine months of 2006.

 

The Company’s financial position as of August 31, 2007 consisted of current assets of $33,777,294 and current liabilities of $8,468,068, or a current ratio of 4.0 to 1.  Shareholders’ equity increased from $27,384,791 as of November 30, 2006 to $29,705,012 as of August 31, 2007.  The increase in equity to $29,705,012 includes the recording of net income derived from operations and offset by dividends declared of $1,474,141 during the first nine months of 2007.

 

The Company’s long term investments as of August 31, 2007 were $3,243,113.  Assuming these long-term investments could be sold and turned into liquid assets at any time, it would result in a current ratio of 4.5 to 1.

 

Accounts receivable, net of reserves, were $7,089,788 as compared to $7,188,197 as of August 31, 2007 and November 30, 2006, respectively.  Inventories, net of reserves, were $7,646,480 as of August 31, 2007 as compared to $6,350,013 as of November 30, 2006.  Accounts payable and accrued liabilities decreased to $7,687,001 as of August 31, 2007 from $8,104,424 as of November 30, 2006.  The Company was not utilizing any of the funds available under its $25,000,000 unsecured credit line as of August 31, 2007. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-20-


 


 

ITEM 3.       QUANTITATIVE AND QUALITATIVE

                      DISCLOSURE ABOUT MARKET RISK

 

The Company’s financial statements record the Company’s investments under the “mark to market” method (i.e., at date-of-statement market value).  The investments are, categorically listed, in “Common Stock”,  “Mutual Funds”,  “Other Equity”, “Preferred Stock”,  “Government Obligations” and “Corporate Obligations.” $218,984 of the Company’s $15,757,902 portfolio of investments (approximate, as at August 31, 2007) is invested in the “Common Stock” and “Other Equity” categories, and approximately $766,560 are Preferred Stock holdings.  The Company does not take positions or engage in transactions in risk-sensitive market instruments in any substantial degree, nor as defined by SEC rules and instructions; therefore, the Company does not believe that its investment-market risk is material.

 

ITEM 4.           CONTROLS AND PROCEDURES

 

With the participation of our Chief Executive Officer and Chief Financial Officer, management has carried out an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) under the Securities Exchange Act of 1934).  Based on that evaluation, the Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of August 31, 2007.

 

There were no changes in our internal control over financial reporting (as defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) subsequent to the date the controls were evaluated that materially affect, or are reasonably likely to materially affect, our internal control over financial reporting.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-21-



CCA INDUSTRIES, INC.

 

PART II OTHER INFORMATION

 

Item 1. Legal Proceedings:

 

See Part I - Note 11 of the Financial Statements regarding litigation.

 

Item 4. Submission of Matters to a Vote of Security Holders:

 

Our annual meeting of shareholders was held on July 31, 2007 in New York, New York.  At the meeting the following persons were elected directors: Dunnan Edell (4,844,840 votes for and 213,231 votes withheld), Seth Hamot (5,026,662 votes for and 31,409 votes withheld) and Robert Lage (4,855,664 votes for and 202,407 votes withheld).

 

The shareholders approved the appointment of KGS LLP as the Company’s independent certified public accountants for the fiscal year ending November 30, 2007 (5,030,624 votes for, 21,272 votes against and 6,175 votes abstained).

 

Item 5. Other Information:

 

Owners of Common Stock and owners of Class A Common Stock are entitled to one vote for each share of stock held, and the voting and other rights of each class are equivalent except in respect to the election of directors.

 

In respect to the election of directors, the Class A Common Stock shareholders have the right to elect four directors and the Common Stock shareholders have the right to elect three.  (In consequence, no proposal to alter or change the right of Class A Common Stock shareholders to elect a majority of directors could be effectively voted unless a separate majority of Class A Common Stock shares were voted therefor.)

 

Item 6. Exhibits and Reports on Form 8-K:

 

(a) Exhibits

 

The following reports were filed with the Securities and Exchange Commission during the three months ended August 31, 2007:

 

Form 10-Q, filed on July 3, 2007 for the quarter ended May 31, 2007

 

(11) Computation of Earnings Per Share*

 

(31.1) Certification of Chief Executive Officer pursuant to Rule 13a-14(a)*

(31.2) Certification of Chief Financial Officer pursuant to Rule 13a-14(a)*

(32.1) Certification of Chief Executive Officer pursuant to 18 U.S.C. 1350*

(32.2) Certification of Chief Financial Officer pursuant to 18 U.S.C. 1350*

 

*          Filed herewith.

 

 

 

 

 

 

 

 

-22-



 

 

CCA INDUSTRIES, INC.

 

PART II OTHER INFORMATION

 

 

Item 6. Exhibits and Reports on Form 8-K (Continued):

 

 

(b) Reports on Form 8-K.

 

None.

              

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-23-

 



 

 

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.

 

 

 

 

 

 

Date:   October 11, 2007

 

 

                                   CCA INDUSTRIES, INC.

 

 

 

                                    By:--------------------------------------------

                                        David Edell, Chief Executive Officer

 

 

 

                                    By:-----------------------------------------------

                                         Ira W. Berman, Chairman of the Board

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

-24-