===========================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
ACT OF 1934.
For the quarterly period ended July 31, 1997
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 0-23001
SIGNATURE EYEWEAR, INC.
(Exact Name of Registrant as Specified in its Charter)
CALIFORNIA 95-3876317
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
498 NORTH OAK STREET
INGLEWOOD, CALIFORNIA 90302
(Address of Principal Executive Offices)
(310) 330-2700
(Registrant's Telephone Number, Including Area Code)
Indicate by check whether the registrant: (1) filed all reports
required to be filed by Section 13 or 15(d) of the Exchange Act 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 No X
----- -----
State the number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date: Common Stock, par
value $0.001 per share, 5,268,027 shares issued and outstanding as of
October 24, 1997.
==========================================================================
<PAGE>
SIGNATURE EYEWEAR, INC.
INDEX TO FORM 10-Q
PART I FINANCIAL INFORMATION PAGE
Item 1. Financial Statements:
Balance Sheets as of July 31, 1997
(unaudited) and October 31, 1996 . . . . . . . . . . . . . 3
Statement of Income (unaudited) for the Three
Months Ended July 31, 1997 and 1996 and the
Nine Months Ended July 31, 1997 and 1996 . . . . . . . . . 4
Statement of Cash Flows (unaudited) for the Nine
Months Ended July 31, 1997 and 1996 . . . . . . . . . . . . 5
Notes to Financial Statements . . . . . . . . . . . . . . . 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 and Use of Proceeds. . . . . . . . . 11
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . 11
<PAGE 2>
PART I
FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
SIGNATURE EYEWEAR, INC.
Balance Sheets
<TABLE>
<CAPTION>
July 31, October 31,
Assets 1997 1996
------------ -----------
(Unaudited)
<S> <C> <C>
Current Assets:
Cash $ 33,450 $ 214,399
Accounts receivable, trade (net of allowance
for doubtful accounts of $70,000 in 1997
and $45,000 in 1996) 3,957,260 3,849,750
Inventories 6,859,769 4,635,928
Prepaid marketing expenses 434,767 168,664
Deferred public offering costs (Note 3) 228,738 0
Prepaid expenses and other current assets 248,184 120,195
----------- -----------
11,762,168 8,988,936
Property and Equipment (at cost, net of accumulated
depreciation and amortization) 1,164,332 1,040,374
Deposits and Other 328,096 263,747
----------- -----------
$13,254,596 $10,293,057
=========== ===========
Liabilities and Stockholders' Equity
Current Liabilities:
Accounts payable, trade $ 3,793,838 $ 2,571,945
Note payable, bank 5,025,000 3,100,000
Current portion of long-term debt 442,169 206,394
Accrued expenses and other current liabilities 1,077,062 1,328,698
----------- -----------
10,338,069 7,207,037
----------- -----------
Long-term Debt, Less Current Portion 15,196 156,883
----------- -----------
Commitments
Stockholders' Equity:
Preferred stock 0 0
Common stock (3,600,527 shares issued and outstanding
at July 31, 1997 and October 31, 1996) 7,732 7,732
Paid-in capital 413,029 413,029
Retained earnings 2,480,570 2,508,376
----------- -----------
2,901,331 2,929,137
----------- -----------
$13,254,596 $10,293,057
=========== ===========
The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE 3>
SIGNATURE EYEWEAR, INC.
Statement of Income
(Unaudited)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
July 31, July 31,
1997 1996 1997 1996
----------- ----------- ----------- -----------
<S> <C> <C> <C> <C>
Net Sales $ 8,317,973 $ 7,049,614 $24,356,027 $20,101,968
Cost of Sales 3,370,175 2,878,963 10,002,285 8,504,334
----------- ----------- ----------- -----------
Gross Profit 4,947,798 4,170,651 14,353,742 11,597,634
----------- ----------- ----------- -----------
Operating Expenses:
Selling 2,402,510 2,067,660 7,102,974 5,749,402
General and administrative 1,539,932 1,573,667 4,347,365 3,925,335
----------- ----------- ----------- -----------
3,942,442 3,641,327 11,450,339 9,674,737
----------- ----------- ----------- -----------
Income from Operations 1,005,356 529,324 2,903,403 1,922,897
----------- ----------- ----------- -----------
Other Income (Expense):
Interest expense ( 107,666) ( 95,261) ( 296,320) ( 261,873)
Sundry income 3,641 10,940 1,153 17,819
----------- ----------- ----------- -----------
( 104,025) ( 84,321) ( 295,167) ( 244,054)
----------- ----------- ----------- -----------
Income before State Income Taxes 901,331 445,003 2,608,236 1,678,843
Provision for State Income Taxes 0 0 800 800
----------- ----------- ----------- -----------
Net Income $ 901,331 $ 445,003 $ 2,607,436 $ 1,678,043
=========== =========== =========== ===========
Pro Forma Data:
Income before provision for
state income taxes (from
above) $ 901,331 $ 445,003 $ 2,608,236 $ 1,678,843
Income tax provision 358,000 160,000 1,032,000 629,000
----------- ----------- ----------- -----------
Net income $ 543,331 $ 285,003 $ 1,576,236 $ 1,049,843
=========== =========== =========== ===========
Net income per common share $ 0.15 $ 0.08 $ 0.44 $ 0.30
=========== =========== =========== ===========
Common shares outstanding 3,600,527 3,600,527 3,600,527 3,528,516
=========== =========== =========== ===========
The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE 4>
SIGNATURE EYEWEAR, INC.
Statement of Cash Flows
(Unaudited)
<TABLE>
<CAPTION>
Nine Months Ended
July 31,
1997 1996
----------- -----------
<S> <C> <C>
Cash Flows from Operating Activities:
Net income $ 2,607,436 $ 1,678,043
----------- -----------
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 326,224 179,045
Provision for bad debts 25,000 20,972
Stock compensation 0 300,000
Changes in assets--(increase) decrease:
Accounts receivable, trade ( 132,510) ( 702,367)
Inventories ( 2,223,841) ( 1,189,041)
Prepaid expenses and other assets ( 687,176) ( 275,478)
Changes in liabilities--increase (decrease):
Accounts payable, trade 1,221,893 421,497
Accrued expenses and other current liabilities ( 251,639) 27,592
----------- -----------
( 1,722,049) ( 1,217,780)
----------- -----------
Net cash provided by operating activities 885,387 460,263
----------- -----------
Cash Flows Used in Investing Activities:
Purchases of property and equipment ( 450,182) ( 371,241)
----------- -----------
Cash Flows from Financing Activities:
Borrowings on note payable, bank 7,925,000 6,710,000
Repayments on note payable, bank ( 6,000,000) ( 5,490,000)
Borrowings on long-term debt 500,000 0
Principal payments on long-term debt ( 405,912) ( 368,386)
Dividends paid ( 2,635,242) ( 865,000)
----------- -----------
Net cash used in financing activities ( 616,154) ( 13,386)
----------- -----------
Net Increase (Decrease) in Cash ( 180,949) 75,636
Cash, Beginning of Period 214,399 28,724
----------- -----------
Cash, End of Period $ 33,450 $ 104,360
=========== ===========
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest $ 285,825 $ 256,339
=========== ===========
Income taxes $ 800 $ 800
=========== ===========
Supplemental Schedule of Noncash Investing and
Financing Activities:
Purchase of equipment financed by capital
lease obligation $ 0 $ 18,623
=========== ===========
The accompanying notes are an integral part of this statement.
</TABLE>
<PAGE 5>
SIGNATURE EYEWEAR, INC.
Notes to the Financial Statements
(Unaudited)
NOTE 1--UNAUDITED INTERIM FINANCIAL STATEMENTS:
- ----------------------------------------------
Interim financial statements are prepared pursuant to the requirements
for reporting on Form 10-Q. Accordingly, certain disclosures
accompanying annual financial statements prepared in accordance with
generally accepted accounting principles are omitted.
These statements should be read in conjunction with the financial
statements and related notes which are included in the Registration
Statement on Form S-1 (Registration No. 333-30017) filed by Signature
Eyewear, Inc. (the "Company") on June 25, 1997, as amended.
In the opinion of management of the Company, all adjustments,
consisting solely of normal recurring adjustments, necessary for the
fair presentation of the financial statements for these interim
periods have been included. The current periods' results of
operations are not necessarily indicative of results which ultimately
may be achieved for the year.
In preparing financial statements in conformity with generally
accepted accounting principles, management makes estimates and
assumptions that affect the reported amounts of assets and liabilities
and disclosures of contingent assets and liabilities at the date of
the financial statements, as well as the reported amounts of revenue
and expenses during the reporting period. Actual results could differ
from those estimates.
NOTE 2--ACCOUNTING POLICIES:
- ---------------------------
PRO FORMA NET INCOME--The pro forma net income represents the results
of operations adjusted to reflect a provision for income tax on
historical income before provision for income taxes, which gives
effect to the change in the Company's income tax status to a
C corporation subsequent to the public sale of its common stock
(Note 3). The difference between the pro forma income tax rates
utilized and federal statutory rate of 35% relates primarily to state
income taxes (approximately 6%, net of federal tax benefit).
PRO FORMA NET INCOME PER SHARE--Historical net income per common share
is not presented because it is not indicative of the ongoing entity.
Pro forma net income per common share has been computed by dividing
pro forma net income by the weighted average number of shares of
common stock outstanding during the period.
EARNINGS PER SHARE--Statement of Financial Accounting Standards
No. 128 is effective for financial statements issued for periods
ending after December 15, 1997. This Statement establishes standards
for computing and presenting earnings per share by replacing the
presentation of primary earnings per share with a presentation of
basic earnings per share. It also requires the dual presentation of
basic and diluted earnings per share on the face of the income
statement. The Company intends to adopt Statement 128 during the
first quarter of fiscal year 1998. The Company has not determined the
effect of adopting this Statement.
REPORTING COMPREHENSIVE INCOME--Statement of Financial Accounting
Standards No. 130 is effective for fiscal years beginning after
December 15, 1997. This Statement establishes standards for reporting
and display of comprehensive income and its components in a full set
of general purpose financial statements. The Company has not
determined when it will adopt the Statement. However, adoption of the
Statement is not expected to have a significant impact because the
Company currently does not have any items of comprehensive income in
its financial statements.
<PAGE 6>
SIGNATURE EYEWEAR, INC.
Statement of Cash Flows
(Unaudited)
NOTE 2--ACCOUNTING POLICIES, CONTINUED:
- --------------------------------------
DISCLOSURES ABOUT SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION--
Statement of Financial Accounting Standards No. 131 is effective for
financial statements for periods beginning after December 15, 1997.
The Statement establishes standards for the way that companies report
information about operating segments in annual financial statements
and also requires that those companies report selected information
about operating segments in interim financial reports issued to
shareholders. The Company has not determined when this Statement will
be adopted. Adoption of Statement No. 131 is not expected to have a
significant impact on the Company because the Company currently
operates in only one industry segment.
NOTE 3--SUBSEQUENT EVENT:
- ------------------------
In September 1997, the Company completed its initial public offering
of 1,667,500 shares (including 67,500 shares sold upon exercise of an
over-allotment option) of newly issued common stock for net proceeds
of approximately $15,507,750 less expenses incurred by the Company in
connection with the Offering. The common stock is trading on the
Nasdaq National Market.
Effective September 16, 1997, the Company's S corporation status was
terminated as a result of the public offering.
<PAGE 7>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Signature designs, markets and distributes prescription eyeglass
frames primarily under exclusive licenses for Laura Ashley Eyewear, Hart
Schaffner & Marx Eyewear and Jean Nate Eyewear, as well as its own Camelot
label. The Laura Ashley Eyewear collection is one of the leading women's
brand-name collections in the United States.
In September 1997, the Company completed its initial public offering
(the "Offering"). See Note 3 of Notes to the Financial Statements included
in this Form 10-Q.
The following discussion and analysis should be read in connection
with the Company's Financial Statements and the footnotes thereto.
EFFECT OF CHANGE IN FORM FROM AN S CORPORATION TO A C CORPORATION
Concurrent with the closing of the Offering, the Company changed in
form from an S corporation to a C corporation, which will affect its
operations and financial condition by increasing the level of federal and
state income taxes. As such, the change in form will affect the net income
and the cash flows of the Company.
As an S corporation, the Company's income, whether or not distributed,
was taxed at the shareholder level for federal and state income tax
purposes. In addition, for California franchise tax purposes, S
corporations were taxed at 2.5% of taxable income through 1993 and 1.5% of
taxable income in 1994, 1995 and 1996, net of income tax credits under the
Los Angeles Revitalization Zone Act. Currently, the highest federal tax
rate for C corporations is 38% (although the majority of the taxable income
is taxed at 35%) and the corporate tax rate in California is 9.3%. The pro
forma provision for income taxes in the statements of income shows results
as if the Company had always been a C corporation and had adopted Statement
of Financial Accounting Standards No. 109 "Accounting for Income Taxes".
RESULTS OF OPERATIONS
The following table sets forth for the periods indicated selected
statement of income data shown as a percentage of net sales. Pro forma
operating results reflect adjustments to the historical operating results
for federal and state income taxes as if the Company had been taxed as a C
corporation rather than an S corporation.
<TABLE>
<CAPTION>
Three Months Ended July 31, Nine Months Ended July 31,
--------------------------- --------------------------
1996 1997 1997 1997
----------- ------------- ----------- ------------
<S> <C> <C> <C> <C>
Net Sales 100.0% 100.0% 100.0% 100.0%
Cost of Sales 40.8 40.5 42.3 41.1
----------- ------------- ----------- ------------
Gross profit 59.2 59.5 57.7 58.9
----------- ------------- ----------- ------------
Operating Expenses:
Selling 29.3 28.9 28.6 29.2
General and
Administrative 22.4 18.5 19.5 17.8
----------- ------------- ----------- ------------
Total operating
expenses 51.7 47.4 48.1 47.0
----------- ------------- ----------- ------------
Income from operations 7.5 12.1 9.6 11.9
----------- ------------- ----------- ------------
Other expense, net (1.2) (1.3) (1.3) (1.2)
----------- ------------- ----------- ------------
Income before pro forma
provision for income
taxes 6.3 10.8 8.3 10.7
Pro forma provision
for income taxes 2.3 4.3 3.1 4.2
----------- ------------- ----------- ------------
Pro forma net income 4.0% 6.5% 5.2% 6.5%
=========== ============= =========== ============
</TABLE>
<PAGE 8>
NET SALES. Net sales were $8,317,973 for the quarter ended July 31,
1997 (the "1997 third quarter"), an increase of 18% over the net sales of
$7,049,614 for the comparable quarter in fiscal 1996 (the "1996 third
quarter"). This increase in net sales was due principally to an increase
of $681,471 in net sales of Hart Schaffner & Marx Eyewear (which was
introduced in the fourth quarter of fiscal 1996), and to a 6.1% increase in
net sales of Laura Ashley Eyewear. Net sales were $24,356,027 for the nine
months ended July 31, 1997 (the "1997 period"), an increase of 21.2% over
the net sales of $20,101,968 in the comparable period in the prior fiscal
year (the "1996 period"). This increase in net sales was due principally
to an increase of $2.1 million in net sales of Laura Ashley Eyewear and of
$1.6 million of net sales of Hart Schaffner & Marx Eyewear for the 1997
period. The increase in Laura Ashley Eyewear net sales was due principally
to an increase in unit sales and of sales directly to independent optical
retailers in California through the Company's own sales representatives,
which resulted in a higher sales price per frame.
GROSS PROFIT. Gross profit increased from $4,170,651 in the 1996
third quarter to $4,947,798 for the 1997 third quarter, and from
$11,597,634 in the 1996 period to $14,353,742 in the 1997 period. These
increases were due to an increase in net sales and to an improvement in the
gross margin, which increased from 59.2% and 57.7% in the 1996 third
quarter and the 1996 period, respectively, to 59.5% and 58.9% for the
corresponding periods in fiscal 1997. These increases were due principally
to lower average frame costs resulting from the Company's continued shift
to lower cost frame manufacturers, and to favorable currency fluctuations.
OPERATING EXPENSES. Operating expenses increased 8.3% from $3,641,327
in the 1996 third quarter to $3,942,442 in the 1997 third quarter, and
18.4% from $9,674,737 in the 1996 period to $11,450,339 in the 1997 period.
Operating expenses for the 1997 third quarter included a $334,850 increase
in selling expenses and a $33,735 decrease in general and administrative
expenses. Operating expenses for the 1997 period included a $1,353,572
increase in selling expenses and a $422,030 increase in general and
administrative expenses. The increase in selling expenses for the 1997
third quarter resulted principally from a $234,533 increase in in-store
display expenditures (associated primarily with the Laura Ashley Eyewear
line). Correspondingly, the increase in selling expenses for the 1997
period resulted principally from a $357,067 increase in in-store display
expenditures (associated primarily with Hart Schaffner & Marx Eyewear and
Laura Ashley Eyewear), a $267,996 increase in royalty expense, a $250,177
increase in convention and trade show expenses, a $173,665 increase in
salaries, and a $128,719 increase in advertising expenses. General and
administrative expenses for the 1997 third quarter were lower because the
Company incurred a $300,000 stock compensation expense in the 1996 third
quarter, as a result of the issuance of 108,016 shares to an executive
officer. General and administrative expenses for the 1997 period increased
principally as a result of a $477,785 increase in compensation expense,
primarily due to an increase in the number of employees (including a number
of mid-level managers).
OTHER EXPENSE, NET. The $19,704 and $51,113 increases in other
expenses for the 1997 third quarter and the 1997 period were due primarily
to increased interest expense.
PRO FORMA PROVISIONS FOR INCOME TAXES. On a pro forma basis, income
taxes would have been $160,000 and $629,000 for the 1996 third quarter and
the 1996 period, respectively, and $358,000 and $1,032,000 in the 1997
third quarter and the 1997 period, respectively.
PRO FORMA NET INCOME. Pro forma net income increased from $285,003 in
the 1996 third quarter and $1,049,843 in the 1996 period to $543,331 in the
1997 third quarter and $1,576,236 in the 1997 period due to the factors set
forth above.
LIQUIDITY AND CAPITAL RESOURCES
Historically, the Company has relied primarily on internally generated
funds, credit from suppliers and bank lines of credit to meet its liquidity
needs.
The Company has a credit agreement (the "Credit Agreement") with a
commercial bank which provides for the use of letters of credit, banker's
acceptances and loans in the aggregate amount of $7,935,417. The
commitment formula limits the amount available to the sum of 75% of
eligible accounts receivable and 40% of eligible inventory, with the
inventory portion limited to the lesser of $3,000,000 or the accounts
receivable borrowing base. At the Company's
<PAGE 9>
option, interest may be based on the London Interbank Offered Rate
("LIBOR") plus 2.25% or at the bank's prime rate plus .25%. At July 31,
1997, the interest rate was 7.937% on a loan balance of $4,900,000 under
the LIBOR option and 8.75% on the remaining balance of $125,000 under the
prime rate option. The Credit Agreement also governs three term loans,
which are due at various times in 1997 and 1998, bear interest at a
weighted average rate of 9.11% per annum, and had an aggregate outstanding
principal balance of $435,417 at July 31, 1997. The Credit Agreement
(which expires in May 1998) is secured by substantially all of the assets
of the Company. The Credit Agreement provides for certain limitations on
capital expenditures and requires the Company to satisfy certain financial
tests, including the maintenance of minimum tangible net worth. After
the Offering, the Company repaid the outstanding balance under the Credit
Agreement with a portion of the proceeds of the Offering.
As a result of the Company's treatment as an S corporation for federal
and state income tax purposes, the Company has historically provided its
shareholders, through dividends, with funds for the payment of income taxes
on the earnings of the Company which have been included in the taxable
income of the shareholders. In addition, the Company has paid dividends to
shareholders to provide them with a return on their investment. The
Company paid dividends of $2,635,242 for the nine months ended July 31,
1997 and $1,346,332 from July 31, 1997 to October 24, 1997. The Company
does not currently intend to pay dividends on its Common Stock and plans to
follow a policy of retaining earnings to finance the growth of its
business.
Of the Company's accounts payable at October 31, 1996 and July 31,
1997, $865,069 and $1,218,950 respectively, were payable in foreign
currency. To monitor risks associated with currency fluctuations, the
Company on a weekly basis assesses the volatility of certain foreign
currencies and reviews the amounts and expected payment dates of its orders
and accounts payable in those currencies. Based on those factors, the
Company may from time to time mitigate some portion of that risk by
purchasing forward commitments to deliver foreign currency to the Company.
The Company held forward commitments for foreign currencies in the amount
of $1,459,457 at October 31, 1996, and held no forward commitments at July
31, 1997.
The Company believes that cash generated from operations, the net
proceeds received by the Company from the Offering, borrowings under its
credit facility, and credit from its suppliers will be sufficient to fund
its working capital requirements at least through fiscal 1998.
<PAGE 10>
PART II
OTHER INFORMATION
ITEM 2. CHANGES IN SECURITIES AND USE OF PROCEEDS
The Company's Registration Statement on Form S-1 (File No. 333-30017)
relating to the offer and sale (the "Offering") of an aggregate of
2,070,000 shares (the "Shares") of Common Stock, par value $0.001 per share
(the "Common Stock"), of the Company was declared effective by the
Securities and Exchange Commission (the "Commission") on September 11,
1997. Of the 2,070,000 shares of Common Stock registered under the
Registration Statement, 1,667,500 shares were sold by the Company and
402,500 shares were sold by certain shareholders of the Company (the
"Selling Shareholders"). The Company also registered under the
Registration Statement (i) 180,000 warrants to purchase up to an aggregate
of 180,000 shares of Common Stock granted to Fechtor, Detwiler & Co., Inc.
and Van Kasper & Company, the managing underwriters of the Offering (the
"Managing Underwriters"), and (ii) 180,000 shares of Common Stock
underlying the warrants granted to the Managing Underwriters.
The Offering commenced on September 11, 1997 and the sale of 1,800,000
shares closed on September 16, 1997, with the sale of an additional 270,000
shares closing on September 30, 1997 (which were sold by the Company and the
Selling Shareholders upon exercise of the over-allotment option granted to the
underwriters). All of the Shares registered were sold in the Offering at
an aggregate price of $10.00 per share, for aggregate proceeds of
$16,675,000 and $4,025,000 to the Company and the Selling Shareholders,
respectively. After deducting underwriting discounts and commissions of
$0.70 per share, the Selling Shareholders received net proceeds of
$3,743,250 and the Company received net proceeds equal to $15,507,750 less
expenses incurred in connection with the Offering (all of which were paid
or are payable by the Company). On September 16, 1997, the Company also
received $0.001 per warrant, for aggregate net proceeds of $180, in
consideration of the warrants granted to the Managing Underwriters.
The Registration Statement became effective on September 11, 1997,
after the July 31, 1997 ending date for the period covered by this
quarterly report. The amount of expenses incurred by the Company in
connection with the Offering, and the application by the Company of the net
proceeds received by the Company in the Offering, will be disclosed as
required by Rule 463 of the Securities Act in the Company's periodic report
for the fiscal year ending October 31, 1997 and, to the extent necessary,
in subsequent periodic reports filed by the Company pursuant to Section
13(a) or 15(d) of the Exchange Act.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits:
Exhibit 27.1 Financial Data Schedule
(b) Reports on Form 8-K.
No reports on Form 8-K were filed during the period covered by
this quarterly report.
<PAGE 11>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
Date: October 23, 1997 SIGNATURE EYEWEAR, INC.
By: /S/ MICHAEL PRINCE
---------------------------------
Michael Prince
Chief Financial Officer
/S/ MICHAEL PRINCE
---------------------------------
Michael Prince
Chief Financial Officer
<PAGE 12>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM
UNAUDITED FINANCIAL STATEMENTS OF SIGNATURE EYEWEAR, INC. AS OF AND FOR THE
NINE MONTHS ENDED JULY 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> OCT-31-1997
<PERIOD-START> NOV-01-1996
<PERIOD-END> JUL-31-1997
<CASH> 33,450
<SECURITIES> 0
<RECEIVABLES> 4,027,260
<ALLOWANCES> 70,000
<INVENTORY> 6,859,769
<CURRENT-ASSETS> 11,762,168
<PP&E> 2,170,216
<DEPRECIATION> 1,005,884
<TOTAL-ASSETS> 13,254,596
<CURRENT-LIABILITIES> 10,338,069
<BONDS> 0
0
0
<COMMON> 7,732
<OTHER-SE> 2,893,599
<TOTAL-LIABILITY-AND-EQUITY> 13,254,596
<SALES> 24,356,027
<TOTAL-REVENUES> 24,357,180
<CGS> 10,002,285
<TOTAL-COSTS> 21,452,624
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 296,320
<INCOME-PRETAX> 2,608,236
<INCOME-TAX> 800
<INCOME-CONTINUING> 2,607,436
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,607,436
<EPS-PRIMARY> 0.72
<EPS-DILUTED> 0.72
</TABLE>
