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I believe catads uses the "global" XOOPS settings for time. You can change the format of this in the ./language/english/global.php - lines 164-167.
define("_DATESTRING","Y/n/j G:i:s");
define("_MEDIUMDATESTRING","Y/n/j G:i");
define("_SHORTDATESTRING","Y/n/j");
The settings are described in the file - but basically you'll want to change them to something like:
define("_DATESTRING","n/j/Y G:i:s");
define("_MEDIUMDATESTRING","n/j/Y G:i");
define("_SHORTDATESTRING","n/j/Y");