<PAGE> 1
FORM 10-QSB
U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 26, 1999
----------------------
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 No. 333-5190-A
THRIFT MANAGEMENT, INC.
- - --------------------------------------------------------------------------------
(Exact Name of Small Business Issuer as Specified in Its Charter)
FLORIDA 65-0309540
- - ------------------------------ --------------------------
(State or Other Jurisdiction of (I.R.S. Employer I.D. No.)
Incorporation or Organization)
3141 W. Hallandale Beach Boulevard
Hallandale, Florida 33009
- - --------------------------------------------------------------------------------
(Address of Principal Executive Offices)
Issuer's telephone number, including area code: 954-985-8430
-----------------
Check whether the Issuer: (1) filed all reports required to be filed by Section
13 or 15(d) of the Exchange Act during the past 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 [ ]
State the number of shares outstanding of each of the Issuer's classes of common
equity as of the latest practical date: At November 8, 1999, there were
outstanding 2,211,710 shares of Common Stock, $.01 par value.
Transitional Small Business Disclosure Format: YES [ ] NO [X]
<PAGE> 2
THRIFT MANAGEMENT, INC.
AND SUBSIDIARIES
INDEX TO FORM 10-QSB
PART I - FINANCIAL INFORMATION
<TABLE>
<CAPTION>
Page
----
<S> <C>
Item 1. Financial Statements
Consolidated Balance Sheet as of September 26, 1999 (unaudited) ...................... 3
Consolidated Statements of Operations for the Three Months and the Nine Months ended
September 26, 1999 and September 27, 1998 (unaudited) ................................ 4
Consolidated Statements of Cash Flows for the Nine Months ended September 26, 1999
and September 27, 1998 (unaudited) ................................................... 5
Notes to Consolidated Financial Statements (unaudited) ............................... 6
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations ................................................... 8
PART II - OTHER INFORMATION
Item 2. Changes in Securities ....................................................... 12
Item 6. Exhibits and Reports on Form 8-K ............................................ 12
Signatures ........................................................................... 13
</TABLE>
2
<PAGE> 3
THRIFT MANAGEMENT, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
September 26,1999
-----------------
ASSETS
CURRENT ASSETS
Cash and cash equivalents $ 309,173
Merchandise inventories 472,991
Prepaid expenses 147,782
Refundable income taxes 67,951
Advances to stockholder 15,789
-----------
TOTAL CURRENT ASSETS 1,013,686
EQUIPMENT, FIXTURES AND IMPROVEMENTS, net 951,727
DEFERRED TAX ASSETS 513,263
OTHER ASSETS 100,314
-----------
TOTAL ASSETS $ 2,578,990
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable 286,139
Accrued expenses 231,126
-----------
TOTAL CURRENT LIABILITIES 517,265
-----------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred stock: $.01 par value, authorized 1,500,000
shares, issued and outstanding 250,000 shares 2,500
Common stock: $.01 par value, authorized 15,000,000
shares, issued and outstanding 2,211,710 shares 22,117
Additional paid-in capital 3,095,944
Accumulated deficit (1,058,836)
-----------
TOTAL STOCKHOLDERS' EQUITY 2,061,725
-----------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 2,578,990
===========
See accompanying notes to consolidated financial statements.
3
<PAGE> 4
THRIFT MANAGEMENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>
<CAPTION>
3 Months Ended 9 Months Ended
------------------------------ ------------------------------
Sept. 26,1999 Sept. 27,1998 Sept. 26,1999 Sept. 27,1998
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales $ 2,141,344 $ 2,110,634 $ 6,951,708 $ 6,511,839
Cost of goods sold 1,432,317 1,476,582 4,437,484 4,096,879
----------- ----------- ----------- -----------
GROSS PROFIT 709,027 634,052 2,514,224 2,414,960
Selling, general and administrative
expenses 1,010,091 979,357 3,005,495 2,823,005
Officer's bonus incentive 21,383 21,036 69,942 65,057
----------- ----------- ----------- -----------
TOTAL OPERATING EXPENSES 1,031,474 1,000,393 3,075,437 2,888,062
----------- ----------- ----------- -----------
(LOSS) FROM OPERATIONS (322,447) (366,341) (561,213) (473,102)
Interest expense -- -- -- 308
Interest income (7,816) (5,958) (24,980) (64,587)
----------- ----------- ----------- -----------
(LOSS) BEFORE INCOME
TAX (BENEFIT) (314,631) (360,383) (536,233) (408,823)
Income tax (benefit) (118,396) (137,051) (201,784) (153,840)
----------- ----------- ----------- -----------
NET (LOSS) $ (196,235) $ (223,332) $ (334,449) $ (254,983)
=========== =========== =========== ===========
(Loss) per share:
Basic:
Net (loss) $ (0.09) $ (0.10) $ (0.15) $ (0.12)
=========== =========== =========== ===========
Diluted:
Net (loss) $ (0.08) $ (0.10) $ (0.14) $ (0.11)
=========== =========== =========== ===========
Weighted average number of shares:
Basic 2,191,480 2,175,000 2,191,480 2,160,000
=========== =========== =========== ===========
Diluted 2,382,979 2,312,000 2,382,979 2,297,000
=========== =========== =========== ===========
</TABLE>
See accompanying notes to consolidated financial statements.
4
<PAGE> 5
THRIFT MANAGEMENT, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
<CAPTION>
Nine Months Ending
------------- -------------
September 26, September 27,
1999 1998
------------- -------------
<S> <C> <C>
Cash flows from operating activities:
Net (loss) $(334,449) $ (254,983)
Adjustments to reconcile net (loss) to
net cash used in operating activities:
Depreciation and amortization 118,806 77,565
Loss on sale of equipment -- 3,505
Payment of consulting expenses with common stock 30,375
Deferred income tax (benefit) (201,784) (153,851)
Changes in current assets and liabilities
(Increase) in merchandise inventories (45,813) (65,861)
Decrease(Increase) in prepaid expenses and other assets 94,487 (113,791)
(Increase) in prepaid income taxes -- (56,972)
(Decrease) Increase in accounts payable (55,838) 63,810
Increase in accrued expenses 37,455 18,633
Decrease in refundable income taxes 42,400 --
Increase in accrued income taxes -- (34,016)
--------- -----------
Total adjustments (10,287) (230,603)
--------- -----------
NET CASH (USED IN) OPERATING ACTIVITIES (344,736) (485,586)
--------- -----------
Cash flows from investing activities:
Purchase of property and equipment (185,569) (376,143)
--------- -----------
NET CASH (USED IN) INVESTING ACTIVITIES (185,569) (376,143)
--------- -----------
Cash flows from financing activitities:
Advances to stockholder, net 47,367 47,367
Warrants exercised 16,050 --
Warrants redeemed (148,930) --
Options exercised 51,650 --
Principal payments on notes payable -- (9,717)
--------- -----------
NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (33,863) 37,650
--------- -----------
EFFECT OF EXCHANGE RATE CHANGES ON CASH (156)
NET (DECREASE) IN CASH (564,168) (824,235)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD 873,341 2,202,541
--------- -----------
CASH AND CASH EQUIVALENTS - END OF PERIOD $ 309,173 $ 1,378,306
========= ===========
SUPPLEMENTAL DISCLOSURES OF CASH FLOW
INFORMATION:
Cash paid during the period for:
Interest $ -- $ 308
========= ===========
Income taxes $ -- $ 80,000
========= ===========
</TABLE>
See accompanying notes to consolidated financial statements.
5
<PAGE> 6
THRIFT MANAGEMENT, INC.
AND SUBSIDIARIES
NOTES TO CONSOLIDATED
FINANCIAL STATEMENTS (UNAUDITED)
(1) BASIS OF PRESENTATION
The accompanying unaudited consolidated financial statements have been
prepared in accordance with the instructions to Form 10-QSB and do not
include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. However,
such information reflects all adjustments (consisting solely of normal
recurring adjustments), which are, in the opinion of management, necessary
for a fair statement of results for the interim periods.
The results of operations for the nine months ended September 26, 1999 are
not necessarily indicative of the results to be expected for the full
year.
These statements should be read in conjunction with the consolidated
financial statements and notes thereto included in the Form 10-KSB for the
year ended December 27, 1998 of Thrift Management, Inc. (the "Company").
(2) ORGANIZATION
The consolidated financial statements at September 26, 1999 and September
27, 1998 include the accounts of the Company, Hallandale Thrift
Management, Inc. ("HTMI"), Thrift Shops of South Broward, Inc. ("TSSB"),
Thrift Shops of West Dade, Inc. ("TSWD"), Hallandale Thrift, Inc. ("HTI"),
North Broward Consignment, Inc. ("NBCI"), Thrift Shops of North
Lauderdale, Inc. ("TSNL"), Thrift Retail, Inc. ("TRI"), Thrift Management
Canada, Inc. ( "TMCI"), Thrift Export, Inc. ("TEI"), Thrift Holdings,
Inc. ("THI") and e-Collectiables-art.com, Inc. ("ECACI") (HTMI, TSSB,
TSWD ,HTI, NBCI, TSNL, TRI, TMCI, TEI, THI and ECACI are collectively
referred to herein as the "Subsidiaries"). All significant intercompany
accounts and transactions have been eliminated in consolidation.
(3) STOCKHOLDERS' EQUITY
During December 1998, the Company reduced the exercise price on its
1,500,000 redeemable warrants from $5.00 to $1.50 per warrant. A total of
10,700 warrants were exercised at $1.50 per share and the remaining
warrants were redeemed by the Company for $.10 per warrant.
During July and August 1999, a total of 26,010 shares of Common Stock were
issued through the exercise of stock options granted to employees and a
Director under the 1996 Stock Option Plan.
In June 1998, the Company issued 30,000 shares of its restricted
Common Stock to a business consultant in payment for services rendered to
the Company. Such restricted Common Stock was valued at $30,374.
6
<PAGE> 7
(4) CHANGE IN ACCOUNTING PERIODS
In 1998, the Company adopted a 52/53 week retail reporting calendar,
whereby all accounting periods end on a Sunday.
(5) CASH AND CASH EQUIVALENTS
At September 26, 1999, the Company had cash and investments in various
bank money market accounts and non-operating accounts with an aggregate
value of $309,173.
(6) STOCK OPTION PLAN
In 1999, the Company granted a total of 122,642 stock options to its
directors and employees under the Company's 1996 Stock Option Plan at
exercise prices equal to the fair market value of the Common Stock on
dates of the grant. These options generally vest over the next four years
and expire not later than 2009.
(7) COMMITMENTS
In April 1998, the Company entered into a five-year lease for a new store
location in Pompano Beach in Broward County, Florida. The lease provides
for minimum monthly rental payments of approximately $4,000 and contains
two renewal options for five years each under substantially the same terms
and conditions.
In October 1998, the Company entered into a five-year lease for a new
store location in Orlando in Orange County, Florida. The lease provides
for minimum monthly rental payments of approximately $8,550 and contains
two renewal options for five years each under substantially the same terms
and conditions.
As part of the Company's program of operating manned donation trailers as
an additional new source of donated merchandise, the Company has entered
into monthly rental agreements to rent space in parking lots of shopping
centers. At the end of the third quarter of 1999, the Company operated
eleven manned donation trailers with four operating under monthly
agreements with monthly rental payments totaling approximately $800.
In January 1999, the Company's Board of Directors approved the prepayment
of up to $155,266 of future bonuses of the Company's President, subject to
the agreement of the President to pay interest on the amount prepaid at
the annual rate of 8.0% payable by December 31, 2000. Prepaid expenses as
of September 26, 1999 include $85,963 in prepaid bonus payments to the
Company's President.
7
<PAGE> 8
THRIFT MANAGEMENT, INC.
AND SUBSIDIARIES
ITEM 2
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
The following is an analysis of the results of operations of Thrift Management,
Inc. and Subsidiaries (collectively, the "Company") and its liquidity and
capital resources. The Company cautions readers that certain important factors
may affect the Company's actual results and could cause such results to differ
materially from any forward-looking statements that may be deemed to have been
made in this Report or that are otherwise made by or on behalf of the Company.
For this purpose, any statements contained in this Report that are not
statements of historical fact may be deemed to be forward-looking statements
which involve risks and uncertainties. Without limiting the generality of the
foregoing, words such as "may," "expect," "believe," "anticipate," "intend,"
"could," "estimate," or "continue" or the negative or other variations thereof
or comparable terminology are intended to identify forward-looking statements.
These risks include: risks of increases in the costs of the Company's
merchandise and the continued availability of suitable merchandise; the
Company's relationship with its suppliers, licensors and contributors; changes
in preferences of customers; competitive and general economic factors in the
markets where the Company sells and collects goods; the impact of and changes in
applicable laws and regulations, such as restrictions on the deductibility for
tax purposes of contributions of goods to charitable organizations; and other
factors discussed herein or from time to time in the Company's other filings
with the Securities and Exchange Commission.
The following discussion and analysis should be read in conjunction with the
consolidated financial statements and the related notes thereto of the Company
included elsewhere herein.
GENERAL
The Company operates seven retail thrift stores that offer new and used articles
of clothing, furniture, miscellaneous household items and antiques. The Company
obtains its merchandise primarily from two sources: (i) purchase contracts with
charitable organizations; and (ii) various independent contract collectors from
whom the Company purchases merchandise in bulk. The Company is registered with
the State of Florida as a professional solicitor. Items from the stores that
remain unsold are sold in bulk to exporters, which ship the items to countries
throughout the Caribbean, Central and South America, and Eastern Europe.
In January 1998, the Company adopted a 52/53 week retail reporting calendar,
whereby all accounting periods end on a Sunday.
8
<PAGE> 9
RESULTS OF OPERATIONS - FOR THE THREE MONTHS ENDED SEPTEMBER 26, 1999 AND
SEPTEMBER 27, 1998.
Revenues for the third quarter ended September 26, 1999 and September 27, 1998
totaled $2,141,344 and $2,110,634, respectively. Sales increased $30,710 or 1.5%
for the 1999 quarter as compared to the 1998 quarter which resulted from the
opening of the Company's sixth store in Pompano Beach, Florida in August 1998
and the Company's seventh store in Orlando, Florida in February 1999. The retail
same-store sales for the quarter decreased 4.4% as compared to 1998, and rag
sales for the quarter decreased 33.0% as compared to 1998 resulting in a
decrease in total same-store sales of 6.5% for the quarter.
Economic and political conditions in the overseas markets that purchase rags
have caused the export market for rags to remain relatively weak, although it
has somewhat improved since the end of 1998. As a result, the Company sold rags
in the third quarter of 1999 for approximately $0.11 per pound as compared to
approximately $0.08 per pound in the third quarter of 1998, both of which were
down from $0.20 per pound in 1997.
The Company's gross profit for the third quarter of 1999 increased $74,975 or
11.8%, to $709,027 from $634,052 for the third quarter of 1998. This increase in
gross profit dollars and the gross profit margin from 30.0% in the third quarter
of 1998 to 33.1% in the third quarter of 1999 is attributable to the decrease in
the cost of goods sold. This decrease was due primarily to the expansion of the
Company's solicitation efforts, which the Company believes is now showing
results as the Company reduced its merchandise purchased from independent
contract collectors by 50.1% in the third quarter of 1999 as compared to the
third quarter of 1998. Accordingly, cost of goods sold, as a percentage of
sales, decreased 3.1 percentage points to 66.9% for the third quarter of 1999 as
compared to 70.0% for the third quarter of 1998.
The Company is continuing its efforts to reduce its dependence on purchased
merchandise by continuing to develop its network of attended donation trailers
and by continuing to develop its phone solicitation division to increase the
Company's sources of donated merchandise. In addition, in 1999 the Company began
an additional solicitation program in Central Florida and this program has
proven to be very successful and cost effective. The Company plans to implement
a similar program in South Florida in the fourth quarter of 1999. The Company is
also adjusting its pricing and promotional strategies on an ongoing basis, in an
effort to maximize its sales, thereby improving the Company's operating results.
Operating expenses for the third quarter of 1999 increased $31,081 or 3.1% to
$1,031,474 from $1,000,393 for the third quarter of 1998. The operating expenses
decreased $22,922 for the Company's sixth store in Pompano Beach, Florida, which
opened in August 1998, and increased $70,925 for the Company's seventh store in
Orlando, Florida, which opened in February 1999. However, these new store
expenses were partially offset by a $19,225 reduction in the other five stores'
operating expenses and a $2,303 increase in corporate overhead.
9
<PAGE> 10
RESULTS OF OPERATIONS - FOR THE NINE MONTHS ENDED SEPTEMBER 26, 1999 AND
SEPTEMBER 27, 1998
Revenues for the nine months ended September 26, 1999 and September 27, 1998
totaled $6,951,708 and $6,511,839, respectively. Sales increased $439,869 or
6.8% for the 1999 nine-month period compared to the 1998 nine-month period. The
sales increase resulted from the opening of the Company's sixth store in Pompano
Beach, Florida in August 1998 and the Company's seventh store in Orlando,
Florida in February 1999. The retail same-store sales for the nine months
decreased 0.7% as compared to 1998, and rag sales for the nine months decreased
36.1% as compared to 1998, resulting in a decrease in total same store sales of
3.5% for the nine months as compared to 1998.
Economic and political conditions in the overseas markets that purchase rags
have caused the export market for rags to remain relatively weak, although it
has somewhat improved since the end of 1998. As a result, the Company sold rags
in the nine months of 1999 for approximately $0.10 per pound as compared to
approximately $0.11 per pound in the nine months of 1998.
The Company's gross profit for the nine months of 1999 increased $99,264 or
4.1%, to $2,514,224 from $2,414,960 for the nine months of 1998. The decline in
the gross profit margin from 37.1% in the nine months of 1998 to 36.2% in the
nine months of 1999 is attributable to the increase in the cost of goods sold.
This increase was due primarily to the expansion of the Company's solicitation
efforts, which the Company now believes is showing results as the Company
reduced its merchandise purchased from independent contract collectors by 37.8%
in the nine months of 1999 as compared to the nine months of 1998. Although cost
of goods sold, as a percentage of sales, increased 0.9 percentage points to
63.8% for the nine months of 1999 as compared to 62.9% for the nine months of
1998, cost of goods sold, as a percentage of sales, decreased 3.1 percentage
points in the third quarter of 1999 as described above the section "Results of
Operations for the Three Months Ended September 26, 1999 and September 27,
1998."
The Company is continuing its efforts to reduce its dependence on purchased
merchandise by continuing to develop its network of attended donation trailers
and by continuing to develop its phone solicitation division to increase the
Company's sources of donated merchandise. In addition, in 1999 the Company began
an additional solicitation program in Central Florida and this program has
proven to be very successful and cost effective. The Company plans to implement
a similar program in South Florida in the fourth quarter of 1999. The Company is
also adjusting its pricing and promotional strategies on an ongoing basis, in an
effort to maximize its sales, thereby improving the Company's operating results.
Operating expenses for the nine months of 1999 increased $187,375 or 6.5%, to
$3,075,437 from $2,888,062 for the nine months of 1998. The operating expenses
increased $72,624 for the Company's sixth store in Pompano Beach Florida, which
opened in August 1998, and $201,412 for the Company's seventh store in Orlando,
Florida which opened in February 1999. However, these new store expenses were
offset partially by a $34,511 reduction in the corporate overhead and by a
$52,150 reduction in the other five stores' operating expenses.
10
<PAGE> 11
LIQUIDITY AND CAPITAL RESOURCES
At September 26, 1999, the Company had working capital of $488,721, as compared
to working capital of $1,035,123 at December 27, 1998.
Cash and cash equivalents at September 26, 1999 totaled $309,173, a decrease of
$564,168, as compared to $873,341 at December 27, 1998. Net cash used in
operating activities totaled $344,735 for the nine months ending September 26,
1999, as compared to $485,586 used in operating activities for the nine months
ending September 27, 1998. Cash used in the purchase of property and equipment
totaled $185,569. Cash used in financing activities, which was primarily the
redemption of common stock partially offset by the exercise of warrants and
options plus the repayment of advances to stockholder totaled $33,863. The
Company believes that its current capital resources, together with the expected
cash flow from its operations, will be sufficient to meet its anticipated
working capital requirements through 1999. There can be no assurances, however,
that such will be the case.
The Company is currently seeking sources of additional capital for general
corporate purposes as well as the start-up of its new subsidiary,
eCollectibles-art.com, Inc. There can be no assurance that the Company will be
able to obtain additional capital upon terms acceptable to it or that the amount
obtained will be sufficient for the needs of the Company. If the Company is not
successful in obtaining additional capital, it will have a material adverse
impact on the Company.
INFLATION AND SEASONALITY
Although the Company cannot accurately determine precisely the effects of
inflation, management does not believe that inflation currently has a material
effect on the Company's sales or results of operations. The Company's operations
are located in South Florida, which has numerous part-time residents during the
winter. The Company's results of operations reflect the seasonable nature of
this market, with donations and sales of merchandise being higher in the winter
months.
YEAR 2000
The Company, using an outside consultant, believes that it has completed all of
the computer software upgrades for the year 2000 as instructed by the various
software vendors used by the Company. All computer hardware has been tested for
the year 2000. The Company currently believes it is ready for the year 2000, and
does not believe this issue will have a significant effect on its results of
operations.
11
<PAGE> 12
PART II - OTHER INFORMATION
Item 2. CHANGES IN SECURITIES
In the third quarter of 1999, the Company granted options to purchase an
aggregate of 88,142 shares of the Company's common stock to the Company's
outside directors and employees, pursuant to the Company's 1996 Stock Option
Plan. The options are exercisable at exercise prices equal to the fair market
value of the common stock on the dates of grant. The options expire no later
than 2009. These grants of options were exempt from registration pursuant to
Section 4(2) of the Securities Act of 1933, as amended.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits:
EXHIBIT NUMBER DESCRIPTION
-------------- -----------
11 Statement re: computation of per share
earnings
27 Financial Data Schedule
(for SEC use only)
(b) Reports on Form 8-K: None
12
<PAGE> 13
SIGNATURE
In accordance with the requirements of the Exchange Act, the Registrant caused
this report to be signed on its behalf by the undersigned, thereunto duly
authorized.
THRIFT MANAGEMENT, INC.
By: /s/ Marc Douglas
-------------------------------------------
Marc Douglas, President and Chief Executive
Officer (Principal Executive Officer)
Date: November 10, 1999
/s/ Stephen L. Wiley
-------------------------------------------
Stephen L. Wiley, Chief Financial
Officer (Principal Financial Officer)
13
<PAGE> 1
THRIFT MANAGEMENT, INC. AND SUBSIDIARIES
EXHIBIT 11 -- STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
The following table presents the computation of basic and diluted losses per
share:
<TABLE>
<CAPTION>
3 Months Ended 9 Months Ended
---------------------------- ----------------------------
Sept. 26, Sept. 27, Sept. 26, Sept. 27,
1999 1998 1999 1998
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Numerator:
Net (loss) $ (196,235) $ (223,332) $ (334,449) $ (254,983)
----------- ----------- ----------- -----------
Denominator:
Denominator for basic loss per
share--weighted-average shares 2,191,480 2,155,000 2,191,480 2,150,000
Effect of dilutive securities:
Employee stock options 191,499 46,500 191,499 46,500
----------- ----------- ----------- -----------
Denominator for diluted loss per share 2,382,979 2,201,500 2,382,979 2,196,500
=========== =========== =========== ===========
(Loss) per share:
Basic $ (0.09) $ (0.10) $ (0.15) $ (0.12)
=========== =========== =========== ===========
Diluted $ (0.08) $ (0.10) $ (0.14) $ (0.12)
=========== =========== =========== ===========
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
FINANCIAL STATEMENTS OF THRIFT MANAGEMENT, INC. FOR THE NINE MONTHS ENDED
SEPTEMBER 26, 1999, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-26-1999
<PERIOD-START> DEC-28-1998
<PERIOD-END> SEP-26-1999
<CASH> 309,172
<SECURITIES> 0
<RECEIVABLES> 231,522
<ALLOWANCES> 0
<INVENTORY> 472,991
<CURRENT-ASSETS> 1,013,686
<PP&E> 1,841,671
<DEPRECIATION> (276,367)
<TOTAL-ASSETS> 2,578,990
<CURRENT-LIABILITIES> 517,265
<BONDS> 0
0
2,500
<COMMON> 22,117
<OTHER-SE> 2,037,108
<TOTAL-LIABILITY-AND-EQUITY> 2,578,990
<SALES> 6,951,708
<TOTAL-REVENUES> 6,951,708
<CGS> 4,437,484
<TOTAL-COSTS> 4,437,484
<OTHER-EXPENSES> 3,075,437
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> (536,233)
<INCOME-TAX> (201,784)
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (334,449)
<EPS-BASIC> (0.15)
<EPS-DILUTED> (0.14)
</TABLE>
