CCA Industries Inc (CAW, Financial) filed Quarterly Report for the period ended 2010-05-31.
Cca Industries Inc has a market cap of $38.9 million; its shares were traded at around $5.506 with a P/E ratio of 10 and P/S ratio of 0.7. The dividend yield of Cca Industries Inc stocks is 5.1%. Cca Industries Inc had an annual average earning growth of 13.9% over the past 10 years.CAW is in the portfolios of Jim Simons of Renaissance Technologies LLC.
The deferred income tax asset increased to $1,509,158 as of May 31, 2010 from $1,193,745 as of November 30, 2009. The Company expects that all of the deferred tax assets will be realized within the next twelve month period subsequent to May 31, 2010. The deferred tax assets include $89,313 related to the Companys unrealized losses of $223,841 on its investments as of May 31, 2010. The unrealized losses reported on the balance sheet were $134,529, which is net of the deferred tax benefit. The Company had reported a valuation allowance of $85,557 as of November 30, 2009 against the deferred tax benefit resulting from the unrealized losses on investments. There is no valuation allowance against the deferred tax benefit from unrealized losses at May 31, 2010, as the Company believes that if the unrealized losses were realized, the full amount of the deferred tax benefit would also be realized in the subsequent twelve months, based on capital gains earned over the prior three years and anticipated gains over the next year. The deferred tax liability increased to $117,154 at May 31, 2010 as compared to $76,929 as of November 30, 2009. The liability is due to the difference in depreciation between the Companys books and income tax returns.
Accounts payable and accrued liabilities increased to $12,326,264 as of May 31, 2010 from $8,775,676 as of November 30, 2009, or an increase of $3,550,588. The Company recorded an accrued liability of $2,500,000 during the second quarter of 2010 as a result of the proposed settlement of its advertising litigation. Please see Note No. 10 to the financial statement for further information regarding the litigation. The balance of the increase was for accrued liabilities in the normal course of business.
Shareholders equity decreased to $29,003,190 as of May 31, 2010 from $30,219,848 as of November 30, 2009. The decrease was due to the net loss of $369,035 and dividends declared of $987,622 during the first six months ended May 31, 2010, offset partially by unrealized gains on its investments of $139,999 during the same period. Unrealized holding gains or losses are recorded as other comprehensive income. Total unrealized losses on marketable securities were $134,529 at May 31, 2010, net of a deferred tax benefit of $89,313.
The Companys financial statements record the Companys investments under the mark to market method (i.e., at date-of-statement market value). The investments are, categorically listed, in Fully Guaranteed Bank Certificates of Deposit, Common Stock, Mutual Funds, Other Equity, Preferred Stock, Government Obligations and Corporate Obligations. $466,896 of the Companys $11,250,108 portfolio of investments (approximate, as at May 31, 2010) is invested in the Common Stock and Other Equity categories, and approximately $2,587,451 in the Preferred Stock holdings category. The Company invests in various investment securities. Investment securities are exposed to various risks such as interest rates, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will incur in the near term. 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, however, due to current securities market conditions, the Company cannot ascertain the risk of any future change in the market value of its investments.
The Company recorded a charge of $2,500,000 as an advertising litigation expense during the second quarter of 2010, with the resultant liability recorded as an accrued liability. To date, the Company has incurred legal fees related to the litigation of approximately $204,362, of which $100,319 was taken as a charge against earnings in the fourth quarter of fiscal 2009, $61,636 was taken as a charge against earnings in the first quarter of fiscal 2010 and $42,407 has been charged against earnings for the second quarter of fiscal 2010. The Company also recorded, as a result of the insurance settlement, an insurance claim receivable of $475,000, during the second quarter of 2010. The advertising litigation expense was reduced by the amount of the insurance claim receivable.
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Cca Industries Inc has a market cap of $38.9 million; its shares were traded at around $5.506 with a P/E ratio of 10 and P/S ratio of 0.7. The dividend yield of Cca Industries Inc stocks is 5.1%. Cca Industries Inc had an annual average earning growth of 13.9% over the past 10 years.CAW is in the portfolios of Jim Simons of Renaissance Technologies LLC.
Highlight of Business Operations:
Inventory increased to $8,757,728 as of May 31, 2010 from $8,327,277 as of November 30, 2009. The inventory increased to support the anticipated sales in the third quarter of 2010. The inventory obsolescence reserve increased to $1,029,377 as of May 31, 2010 from $760,001 as of November 30, 2009. Changes to the inventory obsolescence reserves are recorded as an increase or decrease to the cost of goods. The inventory reserve was increased by $271,153 during the second quarter of 2010 as a result of the voluntary recall of the Plus White whitening gel. This additional reserve reflects the costs of the recalled product that remained in inventory as of May 31, 2010.The deferred income tax asset increased to $1,509,158 as of May 31, 2010 from $1,193,745 as of November 30, 2009. The Company expects that all of the deferred tax assets will be realized within the next twelve month period subsequent to May 31, 2010. The deferred tax assets include $89,313 related to the Companys unrealized losses of $223,841 on its investments as of May 31, 2010. The unrealized losses reported on the balance sheet were $134,529, which is net of the deferred tax benefit. The Company had reported a valuation allowance of $85,557 as of November 30, 2009 against the deferred tax benefit resulting from the unrealized losses on investments. There is no valuation allowance against the deferred tax benefit from unrealized losses at May 31, 2010, as the Company believes that if the unrealized losses were realized, the full amount of the deferred tax benefit would also be realized in the subsequent twelve months, based on capital gains earned over the prior three years and anticipated gains over the next year. The deferred tax liability increased to $117,154 at May 31, 2010 as compared to $76,929 as of November 30, 2009. The liability is due to the difference in depreciation between the Companys books and income tax returns.
Accounts payable and accrued liabilities increased to $12,326,264 as of May 31, 2010 from $8,775,676 as of November 30, 2009, or an increase of $3,550,588. The Company recorded an accrued liability of $2,500,000 during the second quarter of 2010 as a result of the proposed settlement of its advertising litigation. Please see Note No. 10 to the financial statement for further information regarding the litigation. The balance of the increase was for accrued liabilities in the normal course of business.
Shareholders equity decreased to $29,003,190 as of May 31, 2010 from $30,219,848 as of November 30, 2009. The decrease was due to the net loss of $369,035 and dividends declared of $987,622 during the first six months ended May 31, 2010, offset partially by unrealized gains on its investments of $139,999 during the same period. Unrealized holding gains or losses are recorded as other comprehensive income. Total unrealized losses on marketable securities were $134,529 at May 31, 2010, net of a deferred tax benefit of $89,313.
The Companys financial statements record the Companys investments under the mark to market method (i.e., at date-of-statement market value). The investments are, categorically listed, in Fully Guaranteed Bank Certificates of Deposit, Common Stock, Mutual Funds, Other Equity, Preferred Stock, Government Obligations and Corporate Obligations. $466,896 of the Companys $11,250,108 portfolio of investments (approximate, as at May 31, 2010) is invested in the Common Stock and Other Equity categories, and approximately $2,587,451 in the Preferred Stock holdings category. The Company invests in various investment securities. Investment securities are exposed to various risks such as interest rates, market and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will incur in the near term. 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, however, due to current securities market conditions, the Company cannot ascertain the risk of any future change in the market value of its investments.
The Company recorded a charge of $2,500,000 as an advertising litigation expense during the second quarter of 2010, with the resultant liability recorded as an accrued liability. To date, the Company has incurred legal fees related to the litigation of approximately $204,362, of which $100,319 was taken as a charge against earnings in the fourth quarter of fiscal 2009, $61,636 was taken as a charge against earnings in the first quarter of fiscal 2010 and $42,407 has been charged against earnings for the second quarter of fiscal 2010. The Company also recorded, as a result of the insurance settlement, an insurance claim receivable of $475,000, during the second quarter of 2010. The advertising litigation expense was reduced by the amount of the insurance claim receivable.
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