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 February 28, 1998
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 - $6,246,151 shares of as February 28, 1998
Class A Common Stock, $.01 Par Value - $1,020,930 shares as of
February 28, 1998
CCA INDUSTRIES, INC. AND SUBSIDIARIES
INDEX
Page
Number
PART I FINANCIAL INFORMATION:
Consolidated Balance Sheets as of
February 28, 1998 and November 30, 1997
(Restated) 1-2
Consolidated Statements of Operations
for the three months ended February 28, 1998
and February 28, 1997 (Restated) 3
Consolidated Statements of Cash Flows for
the three months ended February 28, 1998
and February 28, 1997 (Restated) 4-5
Notes to Consolidated Financial Statements
(Restated) 6-13
Management Discussion and Analysis of
Results of Operations and Financial
Condition (Restated) 14
PART II OTHER INFORMATION 15-16
SIGNATURES 17
CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
A S S E T S
February 28, November 30,
1998 1997
(Restated) (Restated)
Current Assets
Cash and cash equivalents $ 2,568,863 $ 3,649,774
Short-term investments and marketable
securities (Note 4) 1,650,366 1,926,513
Accounts receivable, net of allowances of
$720,594 and $664,325, respectively
(Note 8) 6,316,133 3,931,273
Inventories 6,617,428 6,014,672
Prepaid expenses and sundry receivables 411,994 248,553
Due from officers - Current 1,500 1,500
Deferred income taxes 731,508 699,294
Deferred advertising 583,787 -
Total Current Assets 18,881,579 16,471,579
Property and Equipment, net of accumulated
depreciation and amortization 520,513 486,029
Intangible Assets, net of accumulated
amortization of $51,068 at February 28, 1998
and $47,956 at November 30, 1997 160,528 163,640
Other Assets
Marketable securities 2,170,325 1,874,175
Due from officers - Non-current 65,250 65,250
Deferred income taxes 117,674 111,006
Other 52,612 52,612
Total Other Assets 2,405,861 2,103,043
Total Assets $21,968,481 $19,224,291
See Notes Consolidated to Financial Statements.
-1-
CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND SHAREHOLDERS' EQUITY
February 28, November 30,
1998 1997
(Restated) (Restated)
Current Liabilities
Accounts payable and accrued liabilities $ 7,149,405 $ 5,053,665
Income taxes payable 352,416 86,104
Total Current Liabilities 7,501,821 5,139,769
Shareholders' Equity
Common stock, $.01 par; authorized
15,000,000 shares; issued and
outstanding 6,246,151 and 6,192,621
shares, respectively 62,462 61,927
Class A common stock, $.01 par; authorized
5,000,000 shares; issued and outstanding
1,020,930 and 1,020,930 shares,
respectively 10,209 10,209
Additional paid-in capital 4,454,228 4,454,763
Retained earnings 9,954,284 9,578,329
Unrealized (losses) on marketable
securities 3,446 ( 2,737)
14,484,629 14,102,491
Less: Treasury Stock (7,500 shares at
February 28, 1998) 17,969 17,969
Total Shareholders' Equity 14,466,660 14,084,522
Total Liabilities and Shareholders' Equity $21,968,481 $19,224,291
See Notes to Consolidated Financial Statements.
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CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
Three Months Three Months
Ended Ended
February 28, February 28,
1998 1997
(Restated) (Restated)
Sales of health and beauty products, net $9,352,431 $8,617,289
Other income 86,254 81,228
9,438,685 8,698,517
Costs and Expenses
Costs of sales 3,587,114 3,076,627
Selling, general and administrative
expenses 2,885,466 2,764,341
Advertising, cooperative and promotions 2,160,785 2,169,725
Research and development 133,580 133,864
Provision for doubtful accounts 63,237 34,834
Interest expense - 2,829
8,830,182 8,182,220
Income before Income Taxes 608,503 516,297
Provision for Income Taxes 232,548 206,296
Net Income $ 375,955 $ 310,001
Earnings per Share
Basic $.05 $.04
Diluted $.05 $.04
See Notes to Consolidated Financial Statements.
-3-
CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
Three Months Three Months
Ended Ended
February 28, February 28,
1998 1997
(Restated) (Restated)
Cash Flows from Operating Activities:
Net income $ 375,955 $ 310,001
Adjustments to reconcile net income
to net cash (used in) provided by
operating activities:
Depreciation and amortization 73,996 93,060
Amortization of bond premium 472 266
Gain on sale of securities ( 2,976)( 3,202)
(Increase) decrease in deferred income
taxes ( 38,883) 11,613
(Increase) in accounts receivable ( 2,384,860) ( 161,791)
(Increase) in inventory ( 602,756) ( 357,776)
(Increase) in prepaid expenses ( 163,441) ( 293,735)
(Increase) in deferred advertising ( 583,787) -
Increase in accounts payable 2,095,740 1,052,334
Increase in income taxes payable 266,312 66,833
Net Cash (Used in) Provided by
Operating Activities ( 964,228) 717,603
Cash Flows from Investing Activities:
Acquisition of property, plant and equipment( 105,368)( 72,765)
Proceeds of monies due from officers - 2,400
Decrease in other assets - 350
Purchase of short-term investments ( 532,119) ( 1,236,702)
Proceeds from sale of investments 520,804 794,915
Purchase of treasury stock - ( 5,469)
Net Cash (Used in) Investing Activities( 116,683) ( 517,271)
Cash Flows from Financing Activities:
Payment on debt - ( 81,750)
Net (Decrease) Increase in Cash ( 1,080,911) 118,582
Cash and Cash Equivalents at Beginning
of Period 3,649,774 1,422,783
Cash and Cash Equivalents at End
of Period $2,568,863 $1,541,365
Supplemental Disclosures of Cash Flow
Information:
Cash paid during the period for:
Interest $ - $ 1,667
Income taxes 5,119 127,850
See Notes to Consolidated Financial Statements.
-4-
CCA INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS (CONTINUED)
(UNAUDITED)
Three Months Three Months
Ended Ended
February 28, February 28,
1998 1997
(Restated) (Restated)
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 $35,000 $30,000
Common stock issued ( 35,000) ( 30,000)
$ - $ -
See Notes to Consolidated Financial Statements.
-5-
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 three month period ended February 28, 1998 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 - 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 subsidiaries (CCA Cosmetics, Inc., CCA Labs, Inc., and
Berdell, 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.
Use of Estimates:
The consolidated financial statements include the use of estimates, which
management believes are reasonable.
The process of preparing financial statements in conformity with generally
accepted accounting principles 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.
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.
-6-
CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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 fiscal 1997 and 1998, two officers/shareholders exercised options to
purchase 60,000 and 70,000 shares of stock by exchanging 14,000 and 16,470
shares, respectively, previously issued shares of common stock. The
common shares were put into treasury and were subsequently cancelled.
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
oftheir 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 7-10 Years
Furniture and fixtures 5-7 Years
Tools, dies and masters 2-7 Years
Transportation equipment 7 Years
Leasehold improvements 7-10 Years or life
of lease, whichever is
shorter
Intangible Assets:
Intangible assets are stated at cost. Patents and trademarks are amortized
on the straight-line method over a period of 17 years.
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.
-7-
CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 - 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 Common Share:
The Company adopted Statement of Financial Accounting Standards ("SFAS")
No. 128, "Earnings Per Share" in 1998. Basic earnings per share is
calculated using the average number of shares of common stock outstanding
during the year. Diluted earnings per share is computed on the basis of
the average number of common shares outstanding plus the effect of out-
standing stock options using the "treasury stock method" and convertible
debentures using the "if-converted" method. Common stock equivalents
consist of stock options.
Revenue Recognition:
The Company recognizes sales at the time delivery occurs. 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 on its last five months sales.
NOTE 4 - INVENTORIES
The components of inventory consist of the following:
February 28, November 30,
1998 1997
Raw materials $4,477,416 $ 4,017,838
Finished goods 2,140,012 1,996,834
$6,617,428 $ 6,014,672
At February 28, 1998 and November 30, 1997, the Company had a reserve for
obsolescence of $819,159 and $860,417, respectively.
NOTE 5 - PROPERTY AND EQUIPMENT
The components of property and equipment consisted of the following:
February 28, November 30,
1998 1997
Machinery and equipment $ 236,582 $ 236,582
Furniture and equipment 329,526 329,526
Tools, dies, and masters 1,689,714 1,584,346
Leasehold improvements 108,474 108,474
2,364,296 2,258,928
Less: Accumulated depreciation
and amortization 1,843,783 1,772,899
Property and Equipment - Net $ 520,513 $ 486,029
Depreciation and amortization expense for the three months ended February
28, 1998 amounted to $70,884 and for the year ended November 30, 1997
amounted to $364,536.
NOTE 6 - INTANGIBLE ASSETS
Intangible assets consist of the following:
February 28, November 30,
1998 1997
Patents and trademarks $ 211,596 $ 211,596
Less: Accumulated amortization 51,068 47,956
Intangible Assets - Net $ 160,528 $ 163,640
-8-
CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 6 - INTANGIBLE ASSETS (Continued)
Amortization expense for the three months ended February 28, 1998
amounted $3,112 and for the year ended November 30, 1997 amounted to
$11,845.
NOTE 7 - 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 $583,787 is accordingly reflected in
the balance sheet for the interim period.This deferral is the result of the
Company's $-0- media budget for the year which contemplates 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:
1998 1997
(In Millions) (In Millions)
Media advertising budget for the fiscal year $5.00 $5.20
Pro-rata portion for three months $1.25 $1.30
Media advertising spent 1.61 1.48
Accrual (deferral) ($ .36) ($ .18)
Anticipated Co-op advertising commitments $3.00 $3.00
Pro-rata portion for three months $ .75 $ .75
Co-op advertising spent .97 .87
Accrual (deferral) ($ .22) ($ .12)
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:
February 28, November 30,
1998 1997
a) Media advertising $1,900 $ 401
b) Coop advertising 537 375
c) Accrued returns 926 712
d) Bonuses * 286
e) Royalty payable * 269
$3,363 $2,043
-9-
CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8 - ACCOUNTS PAYABLE AND ACCRUED LIABILITIES (Continued)
All other liabilities were for trade payables or individually did not exceed
5% of total current liabilities.
* under 5%
NOTE 9 - OTHER INCOME
Other income consists of the following at February 28:
1998 1997
Interest income $ 89,725 $71,864
Dividend income 343 4,217
Miscellaneous ( 3,814) 5,147
$86,254 $81,228
NOTE 10 - 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 invest
ments at February 28, 1998 and November 30, 1997 were as follows:
February 28, November 30,
1998 1997
Current: COST MARKET COST MARKET
Corporate obligations $ 99,006 $ 99,500$ 99,006 $ 99,448
Government obligations
(including mortgage
backed securities) 1,549,288 1,550,865 1,827,503 1,827,065
Total 1,648,294 1,650,365 1,926,509 1,926,513
Non-Current:
Corporate obligations 1,167,345 1,170,360 741,893 744,921
Government obli-
gations 1,001,609 999,966 1,135,023 1,129,254
Total 2,168,954 2,170,326 1,876,916 1,874,175
Total $3,817,248 $3,820,691$3,803,425$3,800,688
-10-
CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 10 - SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
The market value at February 28, 1998 was $3,820,691 as compared to $3,800,688 at November 30, 1997.
The cost and market values of the investments at February 28, 1998 were as follows:
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:
GTE Southwest Deb 12/01/99 5.820% $100,000 $ 99,851 $ 99,796 $ 99,796
AT&T 6/01/98 4.750% 100,000 99,006 99,500 99,500
Florida Power & Light 7/01/99 5.500% 300,000 295,776 298,492 298,492
Virginia Electric & Power 4/01/00 6.481% 250,000 246,117 249,588 249,588
GMAC Smartnotes 10/15/99 5.950% 200,000 200,000 199,428 199,428
Florida Power & Light 4/01/00 5.375% 200,000 199,850 197,900 197,900
T.V.A. - Callable 8/01/99 6.250% 125,000 125,751 125,156 125,156
1,266,351 1,269,860 1,269,860
-11-
CCA INDUSTRIES, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 10 - SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
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:
Tennessee Valley Authority 3/04/98 5.125% $100,000 $100,000 $100,000 $100,000
US Treasury Note 10/31/98 4.750 100,000 99,684 99,500 99,500
US Treasury Note 10/31/98 4.750 200,000 199,992 199,000 199,000
US Treasury Note 10/15/98 7.125 250,000 250,000 252,580 252,580
US Treasury Note 4/30/98 5.125 190,000 189,883 189,883 189,883
US Treasury Note 4/30/98 5.125 10,000 9,992 9,992 9,992
US Treasury Note 7/31/98 5.250 250,000 249,834 249,923 249,923
US Treasury Note 2/28/99 5.875 250,000 249,953 250,860 250,860
US Treasury Note 11/15/99 5.875 250,000 249,141 251,173 251,173
US Treasury Zero Coupon 8/15/99 5.920 148,000 136,038 136,604 136,604
US Treasury Zero Coupon 5/15/98 5.410 215,000 210,954 212,713 212,713
-12-
CCA INDUSTRIES, INC. AND SUBSIDIARIES
MARKETABLE SECURITIES - OTHER INVESTMENTS
NOTE 10 - SHORT-TERM INVESTMENTS AND MARKETABLE SECURITIES (CONTINUED)
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)
Federal Nat. Mtg. Note 7/30/99 5.860% 100,000 $ 99,883$ 100,156 $ 100,156
FHLMC 1628-N 12/15/2023 6.500 50,000 48,024 47,127 47,127
EE Bonds - 7.180 90,000 99,756 99,756 99,756
FNMA 93-G-26-B 8/25/2022 7.000 10,000 6,134 6,144 6,144
FNMA 93-224-D 11/25/2023 6.500 104,000 101,873 97,137 97,137
FNMA 92-2-N 1/25/2024 6.500 52,000 47,424 46,775 46,775
FHLMC 1702-U 3/24/2024 7.000 4,000 2,382 2,382 2,382
FNMA 11/10/98 5.050 200,000 199,950 199,126 199,126
2,550,897 2,550,831 2,550,831
$3,817,248 $3,820,691 $3,820,691
-13-
CCA INDUSTRIES, INC.
MANAGEMENT DISCUSSION AND ANALYSIS OF RESULTS
OF OPERATIONS AND FINANCIAL CONDITION
(UNAUDITED)
For the three month period ended February 28, 1998, the Company had net sales
of $9,352,431 and net income of $375,955 after a provision for income taxes of
$232,548, as compared to net sales of $8,617,289 and net income of $310,001
after provision for income taxes of $206,296 for the three month period ended
February 28, 1998.
All of the Company's sales were primarily to mass merchandisers throughout the
United States.
The cost of sales percentage for the quarter increased from 36% in 1997 to 38%
in 1998 primarily due to the increase of product promotions for the period; as
well as certain product mix fluctuations. Advertising, cooperative and
promotional allowance expenditures during the quarter decreased as a percentage
of sales from 25% in 1997 to 23% in 1998 due to the increase in the sales
volume. As part of the registrant's business it is necessary to enter into
co-operative advertising agreements and other promotional activities with its
accounts, especially upon the introduction of a new product.
Both co-op advertising and promotions have a material effect on the Company's
operations. If the advertising and promotions are successful, revenues will
be increased accordingly. Should the co-op and promotions not be successful,
it will have a negative impact on the Company's promotional cost per sale,
and have a negative effect on income. The Company attempts to anticipate its
advertising and promotional commitments as a percent of gross sales in order
to attempt to control its effect on its net income.
Research and development costs were almost identical for the first quarter of
1998 compared to the first quarter of 1997.
Income before taxes for the quarter increased to $608,503 from $516,297. This
was primarily a result of the higher sales as compared to the prior year.
Selling, general and administrative expenses ("SG&A") increased due to
personnel costs as well as other normal inflationary costs. This increase in
SG&A costs, however, was offset by the increase in sales and therefore the
percentage to sales decreased from 32% in 1997 to 31% in 1998.
The provision for doubtful accounts increased due to reserve necessary on the
increase in accounts receivable.
There was no interest expense for the period due to the Company's repayment
of its long-term debt.
The Company's financial position as at February 28, 1998 consists of current
assets of $18,881,579 and current liabilities of $7,501,821. Shareholders'
equity increased for the three month period from $14,084,522 on November 30,
1997 to $14,466,660 as of February 28, 1998 primarily due to the income of
$375,955 for the period.
The Company's operations resulted in the use of approximately $964,000 of
cash. The Company also used approximately $106,000 to buy fixed assets and
$12,000 to purchase "Available for Sale Securities". Due to its accessibility
to funds, the Company believes that its current financial condition is
sufficient to support its proposed operations for the near future.
-14-
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
February 28, 1998.
-15-
PART II, ITEM 6. (Continued) EXHIBIT 11
CCA INDUSTRIES, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
(UNAUDITED)
Three Months Three Months
Ended Ended
February 28, February 28,
1998 1997
(Restated) (Restated)
Item 6.
Weighted average shares
outstanding - Basic $7,238,993 $7,208,551
Net effect of dilutive stock
options--based on the
treasury stock method
using average market
price 752,780 864,342
Weighted average shares
outstanding - Diluted $7,991,772 $8,072,893
Net income $ 375,955 $ 310,001
Per share amount
Basic $.05 $.04
Diluted $.05 $.04
-16-
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-