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8-K - FORM 8-K - CCA INDUSTRIES INC | c20027e8vk.htm |
EXHIBIT 99.1
Company Contact:
Dunnan D. Edell
Chief Executive Officer
800 524-2720
Dunnan D. Edell
Chief Executive Officer
800 524-2720
FOR IMMEDIATE RELEASE
CCA INDUSTRIES, INC. REPORTS TWENTY-NINTH CONSECUTIVE DIVIDEND, SECOND QUARTER RESULTS AND
TENTATIVE SETTLEMENT OF CLAIM
East Rutherford, NJ, July 15, 2011: CCA Industries, Inc. (NYSE Amex: CAW) announced today
that its Board of Directors has approved a dividend of $0.07 per share, payable to all shareholders of record as of August 2, 2011, and to be paid on September 2, 2011. This will be the Companys twenty-ninth consecutive dividend.
that its Board of Directors has approved a dividend of $0.07 per share, payable to all shareholders of record as of August 2, 2011, and to be paid on September 2, 2011. This will be the Companys twenty-ninth consecutive dividend.
The Company also announced its results for the second quarter ended May 31, 2011. The Company had
total revenues for the three months ended May 31, 2011 of $12,885,313, and a net loss of
$(247,268). Total revenues for the same period in 2010 were $14,855,217 and a net loss of
$(910,589). The basic and fully diluted loss per share was $(0.04) for the second quarter of 2011
as compared to a loss of $(0.13) for the second quarter of 2010. Revenues for the six months ended
May 31, 2011 were $25,456,419 and net income was $95,837 as compared to revenues of $28,053,503 and
a net loss of $(369,035) for the same period in 2010. The basic and fully diluted earnings per
share for the six months ended May 31, 2011 was $0.01 as compared to a loss of $(0.05) per share
for the same period in fiscal 2010.
The Company has reached a tentative settlement of its trademark license dispute with Alleghany
Pharmacal Corporation in which it agreed to a one-time payment to Alleghany of $600,000, an
increase in the royalty rate from 1% to 2.5%, and a minimum annual royalty of $250,000 in order to
settle this matter in full. Although management believed that the Company had a meritorious
defense and could prevail in a court of law, it was decided to settle the dispute as it did not
want to risk the loss of two very profitable core brands, Nutra Nail and Hair Off and possible
substantial liabilities which the Company estimated could be as high as $1,900,000. While the
settlement has not been finalized, a contingent liability of $695,000 was recorded in the second
quarter of fiscal 2011 to reflect the anticipated cost of settling this matter, which had a
material effect on the second quarter results.
The Companys results were also impacted by legal fees of $303,975 for the first half of fiscal
2011 related to the Companys adoption of the Rights Agreement in order to promote fair and equal
treatment of the Company stockholders in connection with any initiative to acquire control of the
Company, and other agreements to ensure continuity of management. The Company allocated the entire
annual amount due, of approximately $1.3 million, under the consulting agreements with its two
founders during the first six months of fiscal 2011. There will be no further allocation of these
consulting fees this year, which eliminates the expense for the second half of fiscal 2011 stated
Dunnan Edell, President and Chief Executive Officer. I believe that, putting these events behind us, the Company will have a profitable second half of
2011. I am excited that the Company will be introducing three new products in the second half that
could provide a substantial increase to sales and earnings into fiscal 2012 Edell continued.
CCA Industries Inc. manufactures and markets health and beauty aids, each under its individual
brand name. The products include, principally, Plus+White toothpastes and teeth whiteners,
Mega-T Green Tea diet supplements, Mega-T Green Tea gum and mint products, Bikini Zone
medicated topical and shave gels, Nutra Nail nail care treatments, Scar Zone scar treatment
products, Sudden Change anti-aging skin care products, Parfume de Vanille fragrances, Solar
Sense sun protection products, Hair Off hair removal and depilatory products, Wash N Curl
shampoos and conditioners and Pain Bust RII an analgesic product.
Statements contained in the news release that are not historical facts are forward looking
statements as that term is defined in the Private Securities Litigation Reform Act of 1995. Such
forward-looking statements are subject to risks and uncertainties, which would cause actual results
to differ materially from estimated results. Such risks and uncertainties are detailed in the
Companys filings with the Securities and Exchange Commission. No assurance can be given that the
results in any forward-looking statement will be achieved and actual results could be affected by
one or more factors, which could cause them to differ materially. For these statements, we claim
the protection of the safe harbor for forward-looking statements contained in the Private
Securities Litigation Reform Act.
CCA Industries, Inc. & Subsidiaries
Second Quarter Ended
May 31, 2011
News Release
Second Quarter Ended
May 31, 2011
News Release
May 31, 2011 | May 31, 2010 | |||||||
Quarter Ended |
||||||||
Total Revenues |
$ | 12,885,313 | $ | 14,855,217 | ||||
Net (Loss) |
$ | (247,268 | ) | $ | (910,589 | ) | ||
Per Share (Loss) |
||||||||
Basic |
$ | (0.04 | ) | $ | (0.13 | ) | ||
Diluted |
$ | (0.04 | ) | $ | (0.13 | ) | ||
Weighted Average
Shares Outstanding |
||||||||
Basic |
7,054,442 | 7,054,442 | ||||||
Diluted |
7,054,442 | 7,054,442 | ||||||
Six Months Ended |
||||||||
Total Revenues |
$ | 25,456,419 | $ | 28,053,503 | ||||
Net Income (Loss) |
$ | 95,837 | $ | (369,035 | ) | |||
Per Share Earnings (Loss) |
||||||||
Basic |
$ | 0.01 | $ | (0.05 | ) | |||
Diluted |
$ | 0.01 | $ | (0.05 | ) | |||
Weighted Average
Shares Outstanding |
||||||||
Basic |
7,054,442 | 7,054,442 | ||||||
Diluted |
7,054,442 | 7,054,442 |