Apr 15 2010
CCA Industries, Inc. (NYSE Amex: CAW) announced today that its revenues for the three months ended February 28, 2010 were $13,198,285, net income was $541,554 and earnings per share were $0.08 fully diluted, as compared with last year's first quarter revenue of $14,944,466, net income of $124,366 and fully diluted earnings of $0.02 per share. "Our financial position is very strong. Our ratio of current assets to current liabilities is 3.8 to one, with no bank debt," stated Dunnan Edell, President.
The Company is defending a consumer class action litigation in California. Plaintiff's allegation contention is that the Company's advertising was misleading. While the Company continues to deny the allegations regarding the Company's advertising, the costs and expenses to the Company associated with defending the case, together with the future payment, if any, of a judgment or settlement, could have a material effect on the operating earnings in the financial period in which the litigation is resolved. In addition, until the litigation is resolved, the Company will continue to incur legal costs that might have a material effect on the operating earnings in the period when the legal expense is incurred. Since the plaintiff did not specify any monetary damages, the Company has not recorded a contingent liability on its balance sheet as a result of the litigation at this time.