<PAGE>
- -------------------------------------------------------------------------------
- -------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
/X/ QUARTERLY REPORT PURSUANT TO SECTION 12 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1998
OR
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _____________ to ______________
Commission File Number 000-28052
EN POINTE TECHNOLOGIES, INC
(Exact name of registrant as specified in its charter)
State or other jurisdiction of I.R.S. Employer I. D.
incorporation or organization:Delaware Number: 75-2467002
100 N. Sepulveda Blvd., 19th Floor
El Segundo, California 90245
(Address of principal executive offices) (ZIP CODE)
Registrant's telephone number, including area code: (310) 725-5200
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 __
As of May 6, 1998, 5,900,210 shares of Common Stock of the Registrant were
issued and outstanding.
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<PAGE>
INDEX
EN POINTE TECHNOLOGIES, INC.
<TABLE>
<CAPTION>
PART I FINANCIAL INFORMATION Page
----
<S> <C>
Item 1 Financial Statements
Condensed Consolidated Balance Sheets - March 31, 1998 and
September 30, 1997 3
Condensed Consolidated Statements of Operations - Three and
six months ended March 31, 1998 and 1997 4
Condensed Consolidated Statements of Cash Flows - Six months
ended March 31, 1998 and 1997 5
Notes to Condensed Consolidated Financial Statements
- March 31, 1998 6
Item 2 Management's Discussion and Analysis of Financial Condition
and Results of Operations 7
PART II OTHER INFORMATION
Item 1 Legal Proceedings 11
Item 4 Submission of Matters to a Vote of Security Holders 11
Item 6 Exhibits and Reports on Form 8-K 11
SIGNATURES
</TABLE>
<PAGE>
EN POINTE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
March 31, September 30,
1998 1997
---------- -------------
(Unaudited)
ASSETS:
<S> <C> <C>
Current assets:
Cash $3,251 $3,315
Restricted cash 255 412
Accounts receivable, net 85,326 76,875
Inventories 4,983 4,663
Prepaid expenses and other current assets 1,028 1,569
------- -------
Total current assets 94,843 86,834
Property and equipment, net of accumulated
depreciation 12,420 3,278
Other assets 3,717 750
------- -------
Total assets $110,980 $90,862
------- -------
------- -------
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
Borrowings under lines of credit $ 47,890 $ 50,692
Accounts payable 12,400 3,798
Accrued liabilities 2,872 2,709
Other current liabilities 11,592 4,593
Current portion of notes payable 232 198
Deferred taxes 91 91
------- -------
Total current liabilities 75,077 62,081
Notes payable 4,265 463
------- -------
Total liabilities 79,342 62,544
Stockholders' equity:
Common stock 6 6
Additional paid-in capital 18,633 18,283
Retained earnings 11,378 10,029
Unrealized holding gains 1,621 --
------- -------
Total stockholders' equity: 31,638 28,318
------- -------
Total liabilities and stockholders' equity $110,980 $ 90,862
------- -------
------- -------
</TABLE>
See Notes to Condensed Consolidated Financial Statements
3
<PAGE>
EN POINTE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(UNAUDITED)
(in thousands, except per share data)
<TABLE>
<CAPTION>
Three months ended Six months ended
March 31, March 31,
------------------ -------------------
1998 1997 1998 1997
-------- -------- -------- ---------
<S> <C> <C> <C> <C>
Net sales $135,303 $116,595 $265,492 $228,261
Cost of sales 122,510 106,974 239,308 208,785
------- ------- ------- -------
Gross profit 12,793 9,621 26,184 19,476
Selling and marketing expenses 8,625 4,778 16,755 10,161
General and administrative expenses 3,476 2,340 6,432 4,480
------- ------- ------- -------
Operating income 692 2,503 2,997 4,835
Interest expense 419 283 846 615
Other income, net (81) (71) (134) (128)
------- ------- ------- -------
Income before income taxes 354 2,291 2,285 4,348
Provision for income taxes 145 967 937 1,837
------- ------- ------- -------
Net income $ 209 $ 1,324 $ 1,348 $ 2,511
------- ------- ------- -------
------- ------- ------- -------
Net income per share:
Basic $ 0.04 $ 0.23 $ 0.23 0.44
------- ------- ------- -------
------- ------- ------- -------
Diluted $ 0.04 $ 0.23 $ 0.22 0.43
------- ------- ------- -------
------- ------- ------- -------
Weighted average shares outstanding:
Basic 5,862 5,667 5,852 5,667
------- ------- ------- -------
------- ------- ------- -------
Diluted 5,942 5,817 6,035 5,807
------- ------- ------- -------
------- ------- ------- -------
</TABLE>
See Notes to Condensed Consolidated Financial Statements
4
<PAGE>
EN POINTE TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Six Months Ended
March 31,
-------------------
1998 1997
-------------------
<S> <C> <C>
Cash flows from operating activities:
Net income $1,348 $2,511
Adjustments to reconcile net income to
net cash used by operations:
Depreciation and amortization 777 558
Deferred compensation 22 95
Allowance for doubtful accounts 180 398
Allowance for returns -- 50
Net change in operating assets and
liabilities 6,165 (14,423)
------ -------
Net cash provided (used) by operating activities 8,492 (10,811)
Cash flows from investing activities:
Purchase of property and equipment (5,919) (856)
------ -------
Net cash used by investing activities (5,919) (856)
Cash flows from financing activities:
Net borrowings (payments) under lines of credit (2,802) 10,836
Payment on notes payable (164) (28)
Proceeds from sales of stock to employees 329 400
------ -------
Net cash provided by financing activities (2,637) 11,208
------ -------
Decrease in cash $ (64) $ (459)
------ -------
------ -------
Supplemental disclosures of cash flow
information:
Interest paid $ 419 $ 628
------ -------
------ -------
Income taxes paid $1,584 $2,995
------ -------
------ -------
Long-term debt acquired in purchase of plant $4,000
------
------
Unrealized gain on equity holdings, net of taxes $1,621
------
------
</TABLE>
See Notes to Condensed Consolidated Financial Statements
5
<PAGE>
EN POINTE TECHNOLOGIES, INC. NOTES TO CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
(UNAUDITED)
Note 1 - Basis of Presentation and General Information
In the opinion of management, the unaudited condensed consolidated balance sheet
of En Pointe Technologies, Inc. (the "Company" or "En Pointe") at March 31,
1998, and the unaudited condensed consolidated statements of income and
unaudited condensed consolidated statements of cash flows for the interim
periods ended March 31, 1998 and 1997 include all adjustments (consisting only
of normal recurring adjustments) necessary to present fairly these financial
statements.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. The year-end balance sheet data was derived from
audited financial statements, but does not include disclosures required by
generally accepted accounting principles. Operating results for the three
and six months ended March 31, 1998 are not necessarily indicative of the
results that may be expected for the year ended September 30, 1998. It is
suggested that these condensed statements be read in conjunction with the
Company's most recent Form 10-K and Annual Report as of September 30, 1997.
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make certain estimates and
assumptions that affect the reported amount of assets and liabilities and
disclosure of contingent assets and liabilities at the date of the financial
statements and the reported amounts of revenues and expenses during the reported
period. Significant estimates in these financial statements include allowances
for uncollectible accounts receivable and for unreimbursed product returns and
the net realizable value of rebates. Actual results could differ from those
estimates.
This Form 10-Q contains forward-looking statements which involve risks and
uncertainties. The Company's actual results may differ significantly from the
results discussed in the forward-looking statements and their inclusion should
not be regarded as a representation by the Company or any other person that the
objectives or plans will be achieved. Factors that might cause such a difference
include, but are not limited to, competitive, technological, financial and
business challenges making it more difficult than expected to continue to sell
information technology products and services. The Company may be unable to
retain existing key sales, technical and management personnel; there may be
other material adverse changes in the information technology industry or in the
Company's operations or business, and any or all of these factors may affect the
Company's ability to continue its current rate of sales growth or may result in
lower sales volume than currently experienced.
Certain important factors affecting the forward-looking statements made herein
include, but are not limited to (I) a significant portion of the Company's sales
continuing to be to certain large customers, (II) continued dependence by the
Company on certain Allied Distributors, (III) continued downward pricing
pressures in the information technology market, (IV) the lack of prior
experience of the Company in the provision of value-added services and (V) the
decision by the Company to expand its sales force into various new geographic
territories. Assumptions relating to budgeting, marketing, and other management
decisions are subjective in many respects and thus susceptible to
interpretations and periodic revisions based on actual experience and business
developments, the impact of which may cause the Company to alter its marketing,
capital expenditure or other budgets, which may in turn affect the Company's
business, financial position, results of operations and cash flows. The reader
is therefore cautioned not to place undue reliance on forward-looking statements
contained herein and to consider other risks detailed more fully in the
Company's most recent Form 10-K and Annual Report as of September 30, 1997.
6
<PAGE>
As mentioned in the Company's most recent Form 10-K, there is a risk associated
with the dependency on major customers. IBM is a major customer whose contract
expires in June of 1998. At that time IBM will enter into new contracts with
certain resellers to supply it, and certain of its customers, with products and
services. Although the Company intends to bid for such contract, there can be
no assurance that the Company will be successful in obtaining such contract.
A significant portion of the Company's operating expenses are fixed, and planned
expenditures are based primarily on sales forecasts and product development
programs. If sales do not meet the Company's expectations in any given period,
any resulting adverse impact on operating results may be further magnified by
the Company's inability to adjust operating expenses sufficiently or quickly
enough to compensate for such a shortfall.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
The forward-looking statements included in Management's Discussion and Analysis
of Financial Condition and Results of Operations, which reflect management's
best judgment based on factors currently known, involve risks and uncertainties.
Actual results could differ materially from those anticipated in these
forward-looking statements as a result of a number of factors, including but not
limited to those discussed below. Forward-looking information provided by En
Pointe pursuant to the safe harbor established by recent securities legislation
should be evaluated in the context of these factors.
The following table sets forth certain financial data as a percentage of net
sales for the periods indicated:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
March 31, March 31,
----------------- ----------------
1998 1997 1998 1997
--------- ------- -------- -------
<S> <C> <C> <C> <C>
Net sales. . . . . . . . . . . . . . . 100.0% 100.0% 100.0% 100.0%
Cost of sales. . . . . . . . . . . . . 90.5 91.7 90.1 91.5
------ ------ ------ -------
Gross profit. . . . . . . . . . . 9.5 8.3 9.9 8.5
Selling and marketing expenses . . . . 6.4 4.1 6.4 4.4
General and administrative expenses. . 2.6 2.1 2.4 2.0
------ ------ ------ -------
Operating income. . . . . . . . . 0.5 2.1 1.1 2.1
Interest expense.. . . . . . . . . . . 0.3 0.2 0.3 0.3
Other income, net. . . . . . . . . . . 0.1 0.1 0.1 0.1
------ ------ ------ -------
Income before income taxes. . . . 0.3 2.0 0.9 1.9
Provision for income taxes . . . . . . 0.1 0.9 0.4 0.8
------ ------ ------ -------
Net income . . . . . . . . . . . . . . 0.2% 1.1% 0.5% 1.1%
------ ------ ------ -------
------ ------ ------ -------
</TABLE>
COMPARISON OF THE QUARTER AND SIX MONTHS ENDED MARCH 31, 1998 AND 1997
All comparisons within the following discussion are related to the same period
of the previous year.
NET SALES. Net sales in the second quarter increased $18.7 million, or 16.0%,
to $135.3 million from the corresponding quarter a year ago. Five new sales
offices accounted for $13.9 million of the net sales increase. Sales under the
IBM global contract amounted to $29.4 million (21.7% of total net sales) and
$41.1 million (35.3% of total net sales), respectively. The decline in IBM
sales reflects a lessening of computer product demand for the period. Service
revenues were $2.6 million (1.9% of total net sales) and $1.4 million (1.2% of
total net sales), respectively.
7
<PAGE>
Net sales for the six months increased $37.2 million, or 16.3%, to $265 million
from the corresponding period a year ago. Six new sales offices accounted for
$30.1 million of the net sales increase. Sales under the IBM global contract
amounted to $60.7 million (22.9% of total net sales) and $71.8 million (31.4% of
total net sales), respectively. Service revenues were $5.3 million (2.0% of
total net sales) and $1.4 million (0.6% of total net sales), respectively.
GROSS PROFIT. Gross profit as a percentage of sales improved to 9.5% from 8.3%
in the corresponding quarter a year ago. The 1.2% improvement in margins was
chiefly attributed to improved purchasing terms and associated rebates from
vendors. For the six months, gross profits showed a similar improvement of 1.4%
to 9.9% from 8.5% in the corresponding period a year ago.
SELLING AND MARKETING EXPENSES. Selling and marketing expenses in the second
quarter increased $3.8 million, or 80.5%, to $8.6 million from the corresponding
quarter a year ago. As a percentage of net sales, selling and marketing
increased to 6.4% from 4.1%. However, in the prior sequential quarter, selling
and marketing expenses were already at 6.2 % of net sales. The current quarter
continues that trend which is primarily wage related and represents an
additional investment in the service and marketing infrastructure of $1.1
million. For the six months, selling and marketing expenses increased $6.6
million or 64.9%, to $16.8 million from the corresponding period a year ago.
GENERAL AND ADMINISTRATIVE EXPENSES. General and administrative expenses in the
second quarter increased $1.1 million, or 48.6%, to $3.5 million from the
corresponding quarter a year ago. As a percentage of net sales, general and
administrative expenses increased to 2.6% from 2.1% a year ago, and 2.3% in the
prior quarter. The increase was attributable to increased staff and other
administrative functions necessary to support the increase in sales volume. For
the six months general and administrative expenses increased $2.0 million or
43.6%, to $6.4 million from the corresponding period a year ago.
INTEREST EXPENSE. Interest expense in the second quarter increased $0.1
million, or 47.9%, to $0.4 million from the corresponding quarter a year ago.
As a percentage of net sales, interest expense increased 0.1% to 0.3%. The
increase is attributable to increased sales volume and related receivables
subject to financing. For the six months interest increased $0.2 million, or
37.5%, to $0.8 million from the corresponding period a year ago, but remained
unchanged on a percentage of net sales basis. Interest of $119 thousand relating
to the Company's new configuration facility in Ontario was capitalized during
the quarter, pending completion of construction of the facility. Total interest
capitalized on the project to date is $199 thousand.
NET INCOME. Net income in the second quarter decreased $1.1 million, or 84.2%,
to $209 thousand from the corresponding quarter a year ago. Net income decreased
primarily as a result of the increases in selling and marketing and general and
administrative expense that exceeded the increases in sales volume and gross
profits. For the six months net income decreased $1.2 million or 46.3%, to $1.3
million, again due to increased overhead expenses.
LIQUIDITY AND CAPITAL RESOURCES
Operating activities provided cash totaling $8.5 million during the six months
ended March 31, 1998. Most of the increase can be attributed to an increase in
other current liabilities, which includes deposits in transit of $6.0 million.
Accounts receivable increased $8.6 million, as a result of continuing sales
growth and inventories increased a nominal $0.3 million as of March 31, 1998.
The Company's accounts receivable balance at March 31, 1998 and September 30,
1997 was $86.7 and $78.0 million. The number of
8
<PAGE>
days' sales outstanding in accounts receivable remained at 58 days both as of
March 31, 1998 and as of September 30, 1997.
Investing activities used cash totaling $5.9 million during the six months ended
March 31, 1998. The investing activities related to the purchase of equipment
and improvements for the Ontario facility of $3.8 million, upgrading of computer
equipment of $1.2 million, purchase of software of $.7 million, and acquisition
of office furniture and equipment of $.2 million.
Investment in marketable securities included in Other Assets increased $2.7
million. The increase reflects an increase in market value on securities
(Shopping.com) that may be sold within the next twelve months. The after tax
unrealized gain amounts to $1.6 million and is a component of Stockholders'
Equity.
Financing activities used net cash totaling $2.6 million during the six months
ended March 31, 1998. The primary use of cash was for the reduction of net
borrowings under lines of credit of $2.8 million. Offsetting this was $.3
million provided by employee purchases of stock under the Company's Employee
Stock Purchase Plan.
As of March 31, 1998, the Company had approximately $3.3 million in cash, $0.3
million in restricted cash, and $19.8 million in working capital. The Company
has several revolving credit facilities collateralized by accounts receivable
and all other assets of the Company, including a $70 million line with IBM
Credit Corporation ("IBM Credit"). As of March 31, 1998, such lines of credit
provided for maximum aggregate borrowings of approximately $81 million, of which
$47.9 million was outstanding. Because the lines of credit are primarily
collateralized by accounts receivable, the available credit and credit limit are
dependent upon the amount of accounts receivable at any given point in time.
Outstanding borrowings on the lines of credit bear interest at the prime less
.25%. The lines of credit may be renewed annually unless notification of an
election not to renew is made by either the Company or creditor on or prior to
the renewal date. Borrowings are collateralized by substantially all of the
Company's assets. In addition, the lines of credit contain certain financing and
operating covenants relating to net worth, liquidity, profitability, repurchase
of indebtedness and prohibition on payment of dividends.
Management believes that existing cash, cash equivalents, available lines of
credit and anticipated cash generated from operations will be sufficient to
satisfy the Company's currently anticipated cash requirements.
SUBSEQUENT EVENTS
On April 2, 1998 the Company agreed to purchase selected assets of First Source
International, Inc., a direct and Online marketer of computer systems and
related peripherals to small and medium sized businesses. The cash portion of
the purchase price will be $550,000 of which $400,000 will result in goodwill.
In addition there will be payments contingent on the future earnings performance
of the acquired business. Currently, the anticipated closing date for the
transaction is in early June of 1998.
On April 16, 1998 the Company obtained a seven year equipment financing loan for
$3.5 million related to the Ontario facility. The loan, under the auspices of
the California Statewide Communities Development Authority, includes $1 million
of tax exempt financing at a rate of 5.25% with the remaining portion of the
loan at 8.15%. Monthly payments amount to $53,404 with the equipment
collateralizing the note.
RECENTLY ISSUED ACCOUNTING STANDARDS
9
<PAGE>
The Financial Accounting Standards Board issued Statement No. 128, "Earnings
per Share," which modifies the way in which earnings per share ("EPS") is
calculated and disclosed. Previously, the Company disclosed primary and fully
diluted EPS. Upon adoption of this standard for the interim period ended
December 31, 1997, the Company is disclosing basic and diluted EPS for fiscal
1998 and has restated all prior period EPS data presented.
The FASB issued Statement No. 130, "Reporting Comprehensive Income" which
establishes standards for the reporting and display of comprehensive income
in general-purpose financial statements. This standard is effective for
fiscal years beginning after December 15, 1997. The Company has not assessed
the impact of this Standard on its financial statements.
The FASB issued Statement No. 131, "Disclosures about Segments of an
Enterprise and Related Information," which establishes standards for the
reporting of operating segments in the financial statements. This standard is
effective for fiscal years beginning after December 15, 1997. The Company
has not assessed the impact of this Standard on its financial statements.
10
<PAGE>
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
There are various claims and legal actions pending against the
Company. In the opinion of management, the outcome of such claims and
litigation will not have a material adverse effect upon the Company's
financial position or results of operations. There have been no
material changes in the legal proceedings reported in the Company's
Annual Report on Form 10-K for the year ended September 30, 1997.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
The Company's annual meeting of stockholders was held on March 6,
1998. The stockholders elected all of the Company's nominees for
director, who constitute the entire Board of Directors. The
stockholders also approved the appointment of Coopers & Lybrand L.L.P.
as the Company's independent auditors for 1998. The votes were as
follows:
<TABLE>
<CAPTION>
1. Election of Directors:
Votes For Withheld
--------- --------
<S> <C> <C>
Attiazaz "Bob" Din 3,891,286 13,190
Naureen Din 3,888,386 16,090
Zubair Ahmed 3,891,386 13,090
Verdell Garroutte 3,891,256 13,220
Mark Briggs 3,890,956 13,520
2. Appointment of Coopers & Lybrand L.L.P.
For 3,897,366
Against 3,110
Abstain 4,000
</TABLE>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
a. Exhibits
Exhibit
Number Description
------- -----------
11 Computation of Earnings Per Common Share
27 Financial Data Schedule for the quarter ended March 31, 1998
b. The Company did not file any reports on Form 8-K during the three
months ended March 31, 1998.
11
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly causedthis report to be signed on its behalf by the
undersigned, thereunto duly authorized.
EN POINTE TECHNOLOGIES, INC.
(REGISTRANT)
Date: May 14, 1998 By: /s/ Robert A. Mercer
----------------------------------
Robert A. Mercer, Principal Accounting Officer
<PAGE>
EN POINTE TECHNOLOGIES, INC.
COMPUTATION OF EARNINGS PER COMMON SHARE
EXHIBIT 11
<TABLE>
<CAPTION>
Three Months ended Six Months ended
BASIC March 31, March 31,
------------------ ----------------
(in thousands, except per share data) 1998 1997 1998 1997
-------------------------------------
<S> <C> <C> <C> <C>
Net income $209 $1,324 $1,348 $2,511
----- ----- ----- -----
----- ----- ----- -----
Basis for computation of basic earnings
per common:
Beginning balance of shares outstanding 5,855 5,665 5,779 5,665
Weighted average number of shares
issued during the period 7 2 73 2
----- ----- ----- -----
Total weighted shares outstanding during period 5,862 5,667 5,852 5,667
----- ----- ----- -----
----- ----- ----- -----
Earnings per share $0.04 $0.23 $0.23 $0.44
----- ----- ----- -----
----- ----- ----- -----
<CAPTION>
Three Months ended Six Months ended
DILUTED March 31, March 31,
------------------ ----------------
(in thousands, except per share data) 1998 1997 1998 1997
-------------------------------------
<S> <C> <C> <C> <C>
Net income $209 $1,324 $1,348 $2,511
----- ----- ----- -----
----- ----- ----- -----
Basis for computation of diluted earnings
per common and common equivalent share:
Weighted average number of shares
outstanding during period 5,862 5,667 5,852 5,667
Weighted average (incremental) common
share equivalents after considering the
effects of options and warrants , exercised
and canceled during the period and after
assumed repurchase of treasury shares 80 150 183 140
----- ----- ----- -----
Total weighted shares 5,942 5,817 6,035 5,807
----- ----- ----- -----
----- ----- ----- -----
Earnings per share $0.04 $0.23 $0.22 $0.43
----- ----- ----- -----
----- ----- ----- -----
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-START> OCT-01-1997
<PERIOD-END> MAR-31-1998
<CASH> 3,251
<SECURITIES> 3,498
<RECEIVABLES> 86,668
<ALLOWANCES> 1,352
<INVENTORY> 4,983
<CURRENT-ASSETS> 94,843
<PP&E> 15,567
<DEPRECIATION> 3,147
<TOTAL-ASSETS> 110,980
<CURRENT-LIABILITIES> 75,077
<BONDS> 0
0
0
<COMMON> 6
<OTHER-SE> 31,632
<TOTAL-LIABILITY-AND-EQUITY> 110,980
<SALES> 265,492
<TOTAL-REVENUES> 265,492
<CGS> 239,308
<TOTAL-COSTS> 262,495
<OTHER-EXPENSES> (134)
<LOSS-PROVISION> 90
<INTEREST-EXPENSE> 846
<INCOME-PRETAX> 2,285
<INCOME-TAX> 937
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 937
<EPS-PRIMARY> .24
<EPS-DILUTED> .18
</TABLE>
