<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10Q
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934: For the period ended September 30, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES
EXCHANGE ACT OF 1934
COMMISSION FILE NO. 333-26991
---------
American Builders & Contractors Supply Co., Inc.
------------------------------------------------
(Exact name of registrant as specified in its charter)
Delaware 39-1413708
-------- ----------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
One ABC Parkway
Beloit, Wisconsin 53511
(Address of principal executive offices) (Zip Code)
Registrants telephone number, including area code (608) 362-7777
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
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practical date.
Common Stock, no par value, 147.04 shares as of October 31, 1997
<PAGE>
Index
American Builders and Contractors Supply Co., Inc. and Subsidiaries
Part I. Financial Information
Item 1. Financial Statements (Unaudited)
Condensed consolidated balance sheets--September 30, 1997 and December 31,
1996
Condensed consolidated statements of income--Three months ended September 30,
1997 and 1996; Nine months ended September 30, 1997 and 1996
Condensed consolidated statements of cash flows--Nine months ended September
30, 1997 and 1996
Notes to condensed consolidated financial statements-- September 30, 1997
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
Part II. Other Information
Item 1. Legal Proceedings
Item 2. Changes in Securities
Item 3. Defaults upon Senior Securities
Item 4. Submission of Matters to a Vote of Security Holders
Item 5. Other Information
Item 6. Exhibits and Reports on Form 8-K
Signatures
<PAGE>
Part II. Other Information
Item 6. Exhibits and Reports on Form 8-K -- the Company did not file any reports
on Form 8-K during the three months ended September 30, 1997.
<PAGE>
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.
--------------------------------------------------
American Builders and Contractors Supply Co., Inc.
November 14, 1997
- ------------------------ --------------------------------------------------
Date: Kendra A. Story
Chief Financial Officer and Director
<PAGE>
Exhibit Index
Exhibit No. Description
- ----------- -----------
27 Financial Data Schedule
<PAGE>
American Builders & Contractors Supply Co., Inc. and Subsidiaries
Condensed Consolidated Statements Of Income And Retained Earnings (Unaudited)
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
<S> <C> <C> <C> <C>
1996 1997 1996 1997
------------ ------------ ------------ ------------
Net sales $240,327,000 $282,177,000 $581,990,000 $693,459,000
Cost of sales 187,432,000 218,295,000 454,972,000 537,222,000
------------ ------------ ------------ ------------
Gross profit 52,895,000 63,882,000 127,018,000 156,237,000
Operating expenses:
Distribution centers 38,647,000 48,859,000 103,533,000 130,525,000
General and administrative 2,819,000 3,238,000 9,303,000 10,708,000
------------ ------------ ------------ ------------
41,466,000 52,097,000 112,836,000 141,233,000
------------ ------------ ------------ ------------
Operating income 11,429,000 11,785,000 14,182,000 15,004,000
Other income (expense):
Interest income 178,000 87,000 479,000 331,000
Interest expense (2,971,000) (4,742,000) (8,433,000) (11,510,000)
------------ ------------ ------------ ------------
(2,793,000) (4,655,000) ( 7,954,000) (11,179,000)
------------ ------------ ------------ ------------
Income before provision for
income taxes 8,636,000 7,130,000 6,228,000 3,825,000
Provision for income taxes 112,000 117,000 299,000 273,000
------------ ------------ ------------ ------------
Net income 8,524,000 7,013,000 5,929,000 3,552,000
Retained earnings at beginning
of year 17,727,000 13,857,000 24,200,000 30,636,000
Distributions to sole stockholder (30,000) (933,000) (3,908,000) (14,251,000)
------------ ------------ ------------ ------------
Retained earnings at end of period $ 26,221,000 $ 19,937,000 $ 26,221,000 $ 19,937,000
============ ============ ============= ============
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE>
Part I. Financial Information
American Builders & Contractors Supply Co., Inc. and Subsidiaries
Condensed Consolidated Balance Sheets (Unaudited)
<TABLE>
<CAPTION>
December 31, September 30,
1996 1997
------------ -------------
<S> <C> <C>
ASSETS
Current assets:
Cash $ 2,630,000 $ 286,000
Accounts receivable 92,360,000 138,058,000
Inventories 95,779,000 135,364,000
Prepaid expenses and other 1,544,000 2,974,000
------------ ------------
Total current assets 192,313,000 276,682,000
Property and equipment, net $ 49,944,000 $ 65,469,000
Net receivable from sole stockholder 5,149,000 5,369,000
Intangible assets, net 3,311,000 13,917,000
Security deposits 1,118,000 1,108,000
Other assets 113,000 663,000
------------ ------------
$251,948,000 $363,208,000
============ ============
LIABILITIES AND STOCKHOLDER'S EQUITY
Current Liabilities:
Trade accounts payable $ 57,700,000 $113,596,000
Other payables and accrued liabilities 14,104,000 24,441,000
Current portion of long-term debt 8,520,000 6,613,000
------------ ------------
Total current liabilities 80,324,000 144,650,000
Long-term debt 139,664,000 196,757,000
Contingent liabilities (Note 2)
Stockholder's equity:
Common stock 109,000 109,000
Additional paid-in capital 1,215,000 1,755,000
Retained earnings 30,636,000 19,937,000
------------ ------------
Total stockholder's equity 31,960,000 21,801,000
------------ ------------
$251,948,000 $363,208,000
============ ============
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE>
American Builders & Contractors Supply Co., Inc. and Subsidiaries
Condensed Consolidated Statements Of Cash Flows (Unaudited)
<TABLE>
<CAPTION>
Nine months ended
September 30
---------------------------
1996 1997
------------ ------------
<S> <C> <C>
Operating activities
Net income $ 5,929,000 $ 3,552,000
Adjustments to reconcile net income to
cash provided by operating activities:
Depreciation 6,147,000 7,921,000
Amortization 280,000 363,000
Amortization of bond issuance costs 141,000
Provision for doubtful accounts 3,022,000 3,748,000
(Gain) loss on disposal of property and
equipment (8,000) 168,000
Change in operating assets and liabilities:
Accounts receivable (34,773,000) (40,137,000)
Inventories (28,790,000) (26,550,000)
Prepaid expenses and other 5,000 (1,430,000)
Security deposits (283,000) 146,000
Other assets (38,000) (534,000)
Accounts payable trade 54,768,000 52,240,000
Accrued liabilities 5,617,000 9,987,000
------------ ------------
Cash provided by operating activities 11,876,000 9,615,000
Investing activities
Additions to property and equipment (12,369,000) (20,915,000)
Proceeds from disposal of property and equipment 562,000 445,000
Acquisitions of businesses (12,557,000) (26,024,000)
------------ ------------
Cash used in investing activities (24,364,000) (46,494,000)
Financing activities
Net borrowings (payments) under line of credit 14,002,000 (39,785,000)
Proceeds from notes payable 5,797,000 100,107,000
Payments on notes payable (4,282,000) (8,284,000)
Payment of debt financing costs (3,572,000)
Net change in receivable from sole stockholder (804,000) 320,000
Distributions to sole stockholder (3,908,000) (14,251,000)
------------ ------------
Cash provided by financing activities 10,805,000 34,535,000
------------ ------------
Net decrease in cash (1,683,000) (2,344,000)
Cash at beginning of period 2,743,000 2,630,000
------------ ------------
Cash at end of period $ 1,060,000 $ 286,000
============ ============
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE>
American Builders & Contractors Supply Co., Inc. and Subsidiaries
Notes To Condensed Consolidated Financial Statements (Unaudited)
September 30, 1997
1. Basis of Presentation
The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with generally accepted accounting principles for
interim financial information and Article 10 of Regulation S-X. Accordingly,
they do not include all of the information and footnotes required by generally
accepted accounting principles for complete financial statements. In the opinion
of management, all adjustments (consisting of only normal recurring accruals)
considered necessary for a fair presentation have been included. Operating
results for the three and nine month periods ended September 30, 1997 are not
indicative of the results that may be expected for the year ending December 31,
1997. For further information, refer to the combined financial statements and
footnotes thereto included in American Builders & Contractors Supply Co., Inc.'s
(ABC or the Company) registration statement on Form S-4 filed in July 1997.
2. Contingent Liabilities
At December 31, 1996 and September 30, 1997, the Company had guaranteed
debt of the sole stockholder in the amounts of $3,616,000 and $2,052,000,
respectively. Certain assets owned by the Company are utilized as collateral as
part of an overall guaranty of this debt by the Company. The Company also had
outstanding letters of credit of $711,000 and $551,000 at December 31, 1996 and
September 30, 1997, respectively, with respect to debt of the Company's sole
stockholder and his affiliates.
3. Issuance of Senior Subordinated Notes and Related Transactions
On May 1, 1997, all of the capital stock of Mule-Hide Products Co., Inc.
(Mule-Hide) and Amcraft Building Products Co., Inc. (Amcraft), companies
previously wholly-owned by the sole stockholder, was contributed to ABC.
Thereafter, Mule-Hide and Amcraft have operated as wholly-owned subsidiaries of
the Company. In addition, Hendricks Real Estate Properties, Inc. (HREP), whose
capital stock also was wholly-owned by the sole stockholder, merged with and
into the Company. Such reorganization was accounted for as a combination of
entities under common control, which is similar to a pooling of interests.
On May 7, 1997, ABC issued $100,000,000 principal amount of 10 5/8% Senior
Subordinated Notes due 2007, for which it received net proceeds of approximately
$96,500,000 after deducting expenses and commissions. Net proceeds of
$10,000,000 were distributed to ABC's sole stockholder, who simultaneously
repaid to the Company approximately $8,300,000 of net borrowings. The remainder
of the net proceeds combined with the repayment of the net stockholder advances
approximated $94,800,000 and was used to repay indebtedness outstanding under
the Company's revolving credit agreement.
<PAGE>
4. Acquisition
On May 19, 1997, ABC acquired certain assets and assumed a portion of the
liabilities of Viking Products, Inc. and certain assets of Viking Aluminum
Products, Inc. (collectively Viking). The purchase price was paid with a
combination of cash and a $3,000,000 seller note payable over two years. Viking
was a regional distributor of residential roofing, siding and window products
with 12 distribution centers located in the Northeastern portion of the United
States. A preliminary allocation of the purchase price of Viking is as follows:
<TABLE>
<CAPTION>
<S> <C>
Accounts receivable $ 8,534,000
Inventories 11,314,000
Property and equipment 2,439,000
Goodwill and other intangible assets 7,200,000
Other assets 263,000
Liabilities assumed (3,928,000)
-----------
Cost of purchase $25,822,000
===========
</TABLE>
The Viking acquisition was accounted for as a purchase; accordingly, the
results of operations of Viking are included with those of ABC from the date of
acquisition (May 19, 1997) forward. Unaudited pro forma financial information is
not presented for the Viking acquisition because the acquisition did not meet
the significance threshold used for Regulation S-X purposes.
5. Subsequent Events
On November 3, 1997, ABC consummated the purchase of five corporations
affiliated with Champ Industries, Inc. as follows: Perfection Roofing Materials,
Inc., Marshall Roofing Supply, Inc., United Building Supply, Inc., SHR Roofing
Supply, Inc., and Stone Metal Products, Inc. (collectively Champ). Champ was a
regional distributor of roofing products with substantial presence in Texas,
California, Oklahoma, Kansas, and Missouri. The purchase price was approximately
$66 million.
The transaction will be accounted for as a purchase.
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
Overview
The Company. ABC is the largest wholesale distributor of roofing products
and one of the largest wholesale distributors of vinyl siding materials in the
United States, operating 178 distribution centers located in 40 states as of
September 30, 1997.
Since January 1, 1997, the Company has opened 8 distribution centers, and
acquired an additional 15 (net of 4 consolidations). Also, 2 distribution
centers were closed, resulting in a net increase of 21 distribution centers thru
September 30, 1997. The results reported herein do not include the results of
acquired businesses prior to their acquisition dates.
The Company completed the Viking Acquisition (see Note 4 of notes to
Condensed Consolidated Financial Statements) on May 19, 1997. The purchase price
in the Viking Acquisition was $25.8 million, which is net of approximately $3.9
million of assumed liabilities. The purchase price was paid with a combination
of cash and a $3.0 million seller note payable over two years. Viking was a
regional distributor of roofing, siding and window products with 12 distribution
centers located in the northeastern portion of the United States and reported
pre-tax income of $1.4 million on net sales of $84.1 million for its fiscal year
ended February 28, 1997. In connection with the Viking Acquisition, the Company
entered into a purchase agreement with Viking Aluminum Products, Inc. (VAP),
previous owner of Viking, pursuant to which the Company agreed to purchase a
minimum of $98.2 million of VAP products for sale in the Company's distribution
centers over the next five years.
Subsequent to September 30, 1997, the Company acquired 31 distribution
centers in connection with the purchase of five corporations affiliated with
Champ Industries, Inc. (see Note 5 of notes to Condensed Consolidated Financial
Statements)
Effects of Acquisitions. The Company has historically selected acquisition
candidates based, in part, on the opportunity to improve their operating
results. The Company seeks to leverage its purchasing power, broad product
selection and management expertise to improve the financial performance of its
acquired distribution centers while maintaining the acquired customer bases.
Results of operations reported herein for each period only include results of
operations for acquired businesses from their respective dates of acquisition.
Full-year operating results, therefore, could differ materially from that
presented. In addition, there has typically been a period following each
acquisition in which the acquired business does not perform at the same level as
the Company's existing distribution centers. As a result of the Company's
ongoing acquisition program, its results of operations have historically
reflected, and are likely to continue to reflect, the periodic inclusion of
underperforming businesses.
<PAGE>
The Company has accounted for its acquisitions to date using the purchase
method of accounting. As a result, these acquisitions have affected, and will
prospectively affect, the Company's results of operations in certain significant
respects. The aggregate acquisition costs are allocated to the tangible and
intangible assets acquired and liabilities assumed by the Company based upon
their respective fair values as of the acquisition date. The cost of such assets
is then amortized according to the classes of assets acquired and the useful
lives thereof. The Company has begun to acquire larger distributors with better
operating results, necessitating payment of purchase prices in excess of the
fair value of net assets acquired resulting in goodwill, which is amortized over
a period of 25 years. Similar future acquisitions may result in additional
amortization expense. In addition, due to the effects of the increased borrowing
to finance future acquisitions, the Company's interest expense may increase in
future periods.
Provision for Income Taxes. ABC and its subsidiaries are operated as
subchapter S corporations under the Internal Revenue Code. As a result, these
entities do not incur federal and state income taxes (except with respect to
certain states) and, accordingly, no discussion of income taxes is included in
"Results of Operations" below. Federal and state income taxes (except with
respect to certain states) on the income of such corporations are incurred and
paid directly by the Company's sole stockholder. Such corporations have
historically made periodic distributions to the stockholder with respect to such
tax liabilities. The Company entered into the Tax Allocation Agreement with the
sole stockholder, pursuant to which he will receive distributions from the
Company with respect to taxes associated with the Company's income.
Results of Operations
The following table summarizes the Company's historical results of
operations as a percentage of net sales for the three months and nine months
ended September 30, 1996 and 1997:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
1996 1997 1996 1997
------- ------ ------- ------
<S> <C> <C> <C> <C>
Income Statment Data:
Net Sales 100.0% 100.0% 100.0% 100.0%
Cost of Sales 78.0 77.4 78.2 77.5
----- ----- ----- -----
Gross Profit 22.0 22.6 21.8 22.5
Operating expenses:
Distribution centers 16.0 17.3 17.8 18.8
General and administrative 1.2 1.1 1.6 1.5
----- ----- ----- -----
Total operating expense 17.2 18.4 19.4 20.3
----- ----- ----- -----
Operating income 4.8% 4.2% 2.4% 2.2%
===== ===== ===== =====
</TABLE>
<PAGE>
Comparison of the three and nine month periods ended September 30, 1997 to the
three and nine month periods ended September 30, 1996
The Company's results of operations are affected by the seasonal nature of
the roofing and siding business. See "Seasonality."
Net sales for the three months ended September 30, 1997 increased by $41.9
million, or 17.4%, to $282.2 million from $240.3 million for the three months
ended September 30, 1996. Net sales for the nine months ended September 30, 1997
increased by $111.5 million, or 19.2%, to $693.5 million from $582.0 million for
the nine months ended September 30, 1996. Components of the change in net sales
are as follows:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
September 30 September 30
Distribution Centers 1996 1997 Increase % 1996 1997 Increase %
Increase Increase
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
In operation prior to January 1, 1995 $208.6 $210.2 $1.6 .8% $517.0 $545.2 $28.2 5.5
Acquired in 1995 10.7 13.2 2.5 23.4 23.5 31.2 7.7 32.8
Opened by the Company in 1995 5.4 6.2 .8 14.8 13.1 15.9 2.8 21.4
Acquired in 1996 11.6 15.3 3.7 31.9 21.9 38.9 17.0 77.6
Opened by the Company in 1996 4.0 8.0 4.0 100.0 6.5 19.2 12.7 195.
Acquired in 1997 -- 23.5 23.5 -- -- 33.6 33.6 --
Opened by the Company in 1997 -- 5.8 5.8 -- -- 9.5 9.5 --
----------------------------------------------------------------------------
Total $240.3 $282.2 $41.9 17.4% $582.0 $693.5 $111.5 19.2%
============================================================================
</TABLE>
Increases in comparable distribution center sales are almost entirely due
to increases in volume as opposed to price increases. Such volume increases are
in part due to introduction of new products such as commercial roofing and
siding into certain distribution centers.
Cost of sales for the three months ended September 30, 1997 increased by
$30.9 million, or 16.5%, to $218.3 million from $187.4 million for the three
months ended September 30, 1996, primarily as a result of costs associated with
increased sales. Cost of sales decreased as a percentage of net sales over the
same period to 77.4% in 1997 from 78.0% in 1996, primarily due to increased
sales of higher margin products such as vinyl siding and windows, and, to a
lesser degree, due to a lower percentage of "direct" sales in 1997 vs. 1996
(direct sales are shipped from ABC's vendors directly to job sites and carry
lower gross margins). Cost of sales for the nine months ended September 30, 1997
increased $82.2 million, or 18.1%, to $537.2 million from $455.0 million for the
nine months ended September 30, 1996, again with the increase mainly due to the
relatively same percentage increase in net sales. Cost of sales as a percentage
of net sales for the nine months ended September 30, 1997 decreased slightly to
77.5% from 78.2% for the same period in 1996 due to the reasons cited above for
the quarter.
Distribution center operating income, which consists of net sales less cost
of sales and operating expenses for the distribution centers, is a key measure
that the Company uses to evaluate individual distribution center performance.
Distribution center operating income for the three months ended September 30,
1997 increased by $.7 million to $15.0 million from
<PAGE>
$14.3 million for the same period in 1996. For the nine months ended September
30, distribution center operating income increased by $2.2 million to $25.7
million in 1997 as compared to $23.5 million for the same period in 1996. As a
percentage of net sales, distribution center expenses increased in 1997 compared
to the same periods in 1996 (1.3 percentage point increase for the three month
period and 1.0 percentage points increase for the nine month period) due mainly
to various costs associated with new locations and additional product lines
introduced to existing locations, and to a lesser degree, due to a higher
percentage of warehouse sales, which require a greater distribution center
expense. Components of distribution center operating income and the change
therein are as follows:
<TABLE>
<CAPTION>
Three months ended Nine months ended
September 30 September 30
Distribution Centers 1996 1997 Change 1996 1997 Change
- -------------------- -------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
In operation prior to January 1, 1995 13.8 13.6 (0.2) 23.9 25.1 1.2
Acquired in 1995 0.5 0.5 -- 0.6 0.9 0.3
Opened by the Company in 1995 -- 0.1 0.1 (0.3) (0.1) 0.2
Acquired in 1996 0.2 0.3 0.1 0.1 (0.2) (0.3)
Opened by the Company in 1996 (0.2) (0.3) (0.1) (0.8) (0.9) (0.1)
Acquired in 1997 -- 0.9 0.9 -- 1.1 1.1
Opened by the Company in 1997 -- (0.1) (0.1) -- (0.2) (0.2)
-------------------------------------------------------------------
Total 14.3 15.0 .7 23.5 25.7 2.2
===================================================================
</TABLE>
For the three months ended September 30, 1997, general and administrative
expenses increased $0.4 million to $3.2 million in 1997 from $2.8 million in the
same period of 1996, while decreasing as a percentage of net sales to 1.1% in
1997 compared to 1.2% in 1996. For the nine months ended September 30, 1997,
general and administrative expenses increased $1.4 million to $10.7 million from
$9.3 million for the same period in 1996. Similar to the quarter, general and
administrative expenses as a percentage of net sales decreased slightly.
Interest expense for the three months ended September 30, 1997 increased by
$1.8 million, or 59.6%, to $4.7 million from $2.9 million for the three months
ended September 30, 1996, primarily as a result of higher interest costs
associated with the Company's issuance in May 1997 of $100 million in senior
subordinated notes (Notes) -- (see Note 3 of notes to Condensed Consolidated
Financial Statements), which also accounts for the $3.1 million increase in
interest expense for the nine months ended September 30, 1997 compared to the
same period in 1996. Additional borrowings necessary to fund both 1997
acquisitions and internal growth also account for some of the increase in
interest expense.
<PAGE>
Liquidity and Capital Resources
Cash Flows from Operating Activities. Net cash provided by operations was
$11.9 million and $9.6 million for the nine months ended September 30, 1996 and
1997, respectively. The decrease was due primarily to changes in working capital
caused by the timing of payments received or made for trade receivables and
payables and inventories.
Cash Flows from Investing Activities. Net cash (used in) investing
activities was $(24.4) million and $(46.5) million for the nine months ended
September, 1996 and 1997, respectively. The increased use of cash in 1997 was
due mainly to the Viking acquisition previously described and a $8.7 million
increase in property plant and equipment additions in the first nine months of
1997 as compared to 1996.
Cash Flows from Financing Activities. Net cash provided by financing
activities was $10.8 million and $34.5 million for the nine months ended
September 30, 1996 and 1997, respectively due to the effects of issuing the
Notes, which resulted in a net use of approximately $5.2 million and
approximately $22.8 million borrowed to finance the cash portion of the Viking
purchase price.
Liquidity. The Company's principal sources of funds are anticipated to be
cash flows from operating activities and borrowings under its revolving credit
agreement. The Company believes that these funds will provide the Company with
sufficient liquidity and capital resources for the Company to meet its financial
obligations, including the payment of principal and interest on the Notes, as
well as to provide funds for the Company's working capital, capital expenditures
and other needs for the foreseeable future. No assurance can be given, however,
that this will be the case. The Company's future operating performance and
ability to service or refinance the Notes and to repay, extend or refinance its
credit agreement will be subject to future economic conditions and to financial,
business and other factors, many of which are beyond the Company's control.
Seasonality
Because of cold weather conditions in many of the markets in which the
Company does business and the seasonal nature of the roofing and siding business
generally, the Company's revenues vary substantially throughout the year, with
its lowest revenues typically occurring in the months of December through
February.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND> THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM ABC
SUPPLY'S CONSOLIDATED BALANCE SHEET AT SEPTEMBER 30, 1997 AND CONSOLIDATED
STATEMENT ON INCOME FOR THE SIX MONTHS ENDED SEPTEMBER 30, 1997 AND IS QUALIFIED
IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<CASH> 286
<SECURITIES> 0
<RECEIVABLES> 138,058
<ALLOWANCES> 4,570
<INVENTORY> 135,364
<CURRENT-ASSETS> 276,682
<PP&E> 65,469
<DEPRECIATION> 7,921
<TOTAL-ASSETS> 363,208
<CURRENT-LIABILITIES> 144,650
<BONDS> 196,757
0
0
<COMMON> 109
<OTHER-SE> 21,692
<TOTAL-LIABILITY-AND-EQUITY> 363,208
<SALES> 693,459
<TOTAL-REVENUES> 693,459
<CGS> 537,222
<TOTAL-COSTS> 537,222
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 11,510
<INCOME-PRETAX> 3,825
<INCOME-TAX> 273
<INCOME-CONTINUING> 3,552
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 3,552
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
