FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
---
THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended June 30, 1997
Commission file number: 1-5731
REXEL, INC.
(Exact name of registrant as
specified in its charter)
New York 13-1474527
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
150 Alhambra Circle, Coral Gables, Florida 33134
(Address of principal executive offices) (Zip Code)
(305) 446-8000
(Registrant's telephone number,
including area code)
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 number of shares outstanding of each of the issuer's classes
of common stock, as of the latest practicable date:
<TABLE>
<CAPTION>
DATE CLASS SHARES OUTSTANDING
---- ----- ------------------
<S> <C> <C>
AUGUST 5, 1997 COMMON STOCK 26,037,690
-------------- ------------ ----------
</TABLE>
<PAGE>
REXEL, INC.
INDEX
-----
<TABLE>
<CAPTION>
PAGE NUMBER
-----------
<S> <C>
Part I - Financial Information
Condensed Consolidated Balance Sheets (Unaudited)
at June 30, 1997 and December 31, 1996................. 1
Condensed Consolidated Statements of Income
(Unaudited) for the Six and Three Months Ended June 30,
1997 and 1996.......................................... 2
Condensed Consolidated Statements of Cash Flows
(Unaudited) for the Six Months Ended June 30, 1997
and 1996............................................... 3
Notes to Unaudited Condensed Consolidated
Financial Statements................................... 4
Independent Accountants' Review Report..................... 6
Management's Discussion and Analysis of Financial
Condition and Results of Operations.................... 7
Part II - Other Information.......................................... 11
</TABLE>
<PAGE>
REXEL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(000's omitted, except for share amounts)
<TABLE>
<CAPTION>
June 30, Dec. 31,
1997 1996
---------- ----------
(UNAUDITED)
<S> <C> <C>
ASSETS
- ------
Current Assets
Cash $ 16,190 $ 14,396
Accounts and Notes Receivable - Net 187,406 156,450
Inventories 125,346 117,657
Prepaid Expenses and Other Current Assets 8,598 10,423
Deferred Income Taxes 4,088 3,747
---------- ----------
Total Current Assets 341,628 302,673
Investments and Noncurrent Receivables 192 814
Fixed Assets - Net 47,511 48,218
Other Assets 3,503 3,286
Goodwill - Net 91,690 73,947
---------- ----------
$ 484,524 $ 428,938
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
Current Liabilities
Short-Term Debt $ 37,100 $ 25,500
Current Portion of Long-Term Debt 7,708 7,737
Accounts Payable - Trade and Other Liabilities 188,293 161,377
Income Taxes Payable 4,721 2,186
---------- ----------
Total Current Liabilities 237,822 196,800
Long-Term Debt 22,053 29,582
Other Long-Term Liabilities 5,936 3,476
Deferred Income Taxes 2,774 2,973
Stockholders' Equity
Preferred Stock (Authorized 2,000,000 Shares, None Issued) 0 0
Common Stock (26,654,933 and 26,313,633 Shares Issued) 26,655 26,314
Capital Surplus 98,261 94,706
Retained Earnings 95,912 79,976
Treasury Stock, at Cost (621,243 Shares) (4,889) (4,889)
---------- ----------
215,939 196,107
---------- ----------
$ 484,524 $ 428,938
========== ==========
</TABLE>
See accompanying independent accountants' review report and notes
to unaudited condensed consolidated financial statements.
<PAGE>
<TABLE>
<CAPTION>
REXEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(000's omitted, except for per share amounts)
SIX MONTHS ENDED THREE MONTHS ENDED
JUNE 30, JUNE 30,
---------------- ----------------
1997 1996 1997 1996
-------- -------- -------- --------
(UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net Sales $666,834 $556,648 $348,168 $291,891
Cost Of Goods Sold 528,962 439,323 276,525 230,826
-------- -------- -------- --------
Gross Profit 137,872 117,325 71,643 61,065
Selling and Administrative Expenses 107,270 91,494 54,462 46,483
-------- -------- -------- --------
Operating Profit 30,602 25,831 17,181 14,582
Interest Expense 3,141 2,543 1,514 1,251
Other Income - Net 253 242 157 165
Income From Operations Before Income Taxes 27,714 23,530 15,824 13,496
Provision For Income Taxes 11,778 10,353 6,725 5,938
-------- -------- -------- --------
Net Income $ 15,936 $ 13,177 $ 9,099 $ 7,558
======== ======== ======== ========
Net Income Per Common Share $ .61 $ .51 $ .35 $ .29
======== ======== ======== ========
Weighted Average Number of Common and
Common Equivalent Shares 26,152 26,000 26,249 25,923
======== ======== ======== ========
See accompanying independent accountants' review report and notes
to unaudited condensed consolidated financial statements.
</TABLE>
<PAGE>
REXEL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(000's omitted)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JUNE 30,
---------------------------------
1997 1996
------------ ------------
(UNAUDITED)
<S> <C> <C>
Net Cash Provided By Operating Activities $ 23,225 $ 6,399
------------ ------------
Cash Flows From Investing Activities:
Capital Expenditures (2,445) (2,584)
Cash paid for Acquisitions (25,146) 0
Other Investing Activities 1,738 (137)
------------ ------------
Net Cash Used In Investing Activities (25,853) (2,721)
------------ ------------
Cash Flows From Financing Activities:
Net Borrowings under Line of Credit Arrangement 11,600 6,950
Acquisition of Treasury Shares 0 (19)
Proceeds From Exercise of Stock Options 2,518 85
Other Debt Payments and Financing Activities (9,696) (7,674)
------------ ------------
Net Cash Provided By (Used In) Financing Activities 4,422 (658)
------------ ------------
Net Increase In Cash 1,794 3,020
Cash at Beginning of Period 14,396 10,013
------------ ------------
Cash at End of Period $ 16,190 $ 13,033
============ ============
Supplemental information of business acquired:
Fair value of assets acquired, other than cash $ 40,572
Liabilities assumed (10,197)
Liabilities issued to sellers (5,229)
------------
Cash paid for acquisitions $ 25,146
============
</TABLE>
See accompanying independent accountants' review report and notes
to unaudited condensed consolidated financial statements.
<PAGE>
REXEL, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL
STATEMENTS
1. The accompanying financial information should be read in conjunction with
the consolidated financial statements, including the notes thereto, for the
year ended December 31, 1996. The condensed consolidated balance sheet as
of December 31, 1996 has been summarized from the Company's audited
consolidated balance sheet as of that date but does not include all
disclosures required by generally accepted accounting principles.
2. Results for interim periods are not necessarily indicative of the results
to be expected for the year. The accompanying financial information
reflects all adjustments which are, in the opinion of Management, of a
normal, recurring nature and necessary for a fair presentation of the
results for the periods.
3. Inventories are stated at the lower of LIFO cost or market.
4. Net income per common share is computed by dividing net income by the
weighted average number of common and common equivalent shares outstanding
during the periods.
5. On August 7, 1996, the Company acquired the common stock of Utility
Products Supply Co. of Denver, Colorado ("UPS"), a distributor of
electrical products to the utility industries with locations in Colorado,
Arizona, California and Kansas, for cash and deferred payments totaling
$5.6 million.
On November 12, 1996, the Company acquired the common stock of Cable &
Connector Warehouse, Inc. of Dallas, Texas ("CCW"), a distributor of
electronic wire, cable, connectors and related apparatus to manufacturers
of data and telecommunications products with locations in Louisiana, Texas,
Colorado, California, Oregon and Kansas, for cash consideration of $20.2
million (including $0.2 million of acquisition costs), plus contingent
consideration of up to $4.0 million based upon achieving certain operating
results in 1997. Any contingent consideration will be recorded as
additional purchase price.
Effective January 1, 1997, the Company acquired the assets of Southland
Electrical Supply Company ("Southland"), a distributor of electrical parts
and supplies with eight locations in Kentucky for a cash purchase price
(including $0.2 million of acquisition costs) of approximately $20.1
million and a future obligation of $4.7 million.
On April 29, 1997, the Company acquired the common stock of Chemco Electric
Supply, Inc., ("Chemco") a distributor of electrical parts and supplies
with three distribution centers located in Tampa, Bartow and Pinellas Park,
Florida for a total consideration (including $0.2 million of acquisition
costs) of approximately $5.5 million consisting of cash of $5.0 million and
a future obligation of $0.5 million. Concurrent with the Chemco
acquisition, the Company paid approximately $2.1 million of Chemco bank
debt and received approximately $1.1 million from the seller as payment for
the selling shareholder's debt to Chemco and the purchase of a life
insurance policy.
Each of these acquisitions has been recorded as a purchase, and the excess
of the total purchase price over the fair value of the net assets acquired
($3.0 million for UPS, $13.7 million for CCW, $14.6 million for Southland
and $4.3 million for Chemco) is being amortized over 40 years. Results of
operations of the companies are included in the Company's financial
statements from the respective dates of acquisition. The following table
summarizes the effect on consolidated sales and income of the Company for
the six and three months ended June 30, 1997 and 1996 on an unaudited pro
forma basis, assuming the acquisitions had been consummated on January 1,
1996:
<PAGE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED THREE MONTHS ENDED
JUNE 30, JUNE 30,
--------------------------- ---------------------------
1997 1996 1997 1996
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Net sales $ 673,485 $ 631,499 $ 349,536 $ 330,348
========== ========== ========== ==========
Net income $ 16,011 $ 13,959 $ 9,094 $ 8,239
========== ========== ========== ==========
Net income per share $ .61 $ .54 $ .35 $ .32
========== ========== ========== ==========
</TABLE>
The pro forma results are not necessarily indicative of what actually
would have occurred if the acquisitions had been consummated on
January 1, 1996 or are they necessarily indicative of future operating
results.
<PAGE>
INDEPENDENT ACCOUNTANTS' REVIEW REPORT
To the Board of Directors and Stockholders of
Rexel, Inc.
We have reviewed the accompanying condensed consolidated balance sheet of Rexel,
Inc. and subsidiaries (the "Company") as of June 30, 1997, and the related
condensed consolidated statements of income and cash flows for the three-month
period then ended. These financial statements are the responsibility of the
Company's management. The financial statements of the Company for the
three-month period ended March 31, 1997 and for the three-month and six-month
periods ended June 30, 1996 were reviewed by other accountants whose reports,
dated April 18, 1997 and August 7, 1996, respectively, stated that they were not
aware of any material modifications that should be made to those financial
statements for them to be in conformity with generally accepted accounting
principles. The financial statements of the Company for the year ended December
31, 1996 were audited by other auditors whose report, dated February 14, 1997,
expressed an unqualified opinion on those statements.
We conducted our review in accordance with standards established by the American
Institute of Certified Public Accountants. A review of interim financial
information consists principally of applying analytical procedures to financial
data and of making inquiries of persons responsible for financial and accounting
matters. It is substantially less in scope than an audit conducted in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a whole.
Accordingly, we do not express such an opinion.
Based on our review, we are not aware of any material modifications that should
be made to the condensed consolidated financial statements as of June 30, 1997
and for the three-month period then ended for them to be in conformity with
generally accepted accounting principles.
/s/ DELOITTE & TOUCHE LLP
Miami, Florida
August 13, 1997
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
- ---------------------
Earnings per share for the second quarter of 1997 increased to $.35 per share
from $.29 per share in the second quarter of 1996 on a 20.4% increase in net
income from $7.6 million to $9.1 million. Earnings per share for the six months
ended June 30,1997 increased to $.61 per share from $.51 per share for the first
six months of 1996 on a 20.9% increase in net income from $13.2 million to $15.9
million.
Sales for the second quarter ended June 30, 1997 were up 19.3% (5.8% on same
branch sales) to $348.2 million compared to second quarter 1996 sales of $291.9
million. For the six months ended June 30, 1997, sales were up 19.8% (6.7% on
same branch sales) to $666.8 million from $556.6 million for the first six
months of 1996.
The following table sets forth the percentage which certain income and expense
items bear to net sales:
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, June 30,
----------------- -----------------
1997 1996 1997 1996
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net Sales 100.0% 100.0% 100.0% 100.0%
====== ====== ====== ======
Gross Profit 20.6% 20.9% 20.7% 21.1%
Selling and Administrative
Expenses 15.6 15.9 16.1 16.4
------ ------ ------ ------
Operating Profit 5.0 5.0 4.6 4.7
Interest Expense 0.4 0.4 0.5 0.5
Other Income - - 0.1 -
------ ------ ------ ------
Income Before Taxes 4.6% 4.6% 4.2% 4.2%
====== ====== ====== ======
</TABLE>
Sales for 1997 include $39.2 million and $72.2 million for the quarter and six
months ended June 30, 1997, respectively, for Utility Products Supply, Cable
Connector Warehouse, Southland Electrical and Chemco Electric Supply, acquired,
respectively, on August 7, 1996, November 12, 1996, January 1, 1997 and April
29, 1997. These acquisitions accounted for 13.4% of the 19.3% sales increase for
the quarter and 13.0% of the 19.8% sales increase for the six months. The
increase in same branch sales for both the quarter and six months is primarily
attributable to growth in commercial construction in the California, Arizona,
North Texas and Florida markets. Backlogs in commercial construction operations
remain strong while industrial operations backlogs are flat to slightly up.
Excluding acquisitions, no branches were opened or closed during the second
quarter of 1997. The Company opened one new branch and closed two branches in
the first quarter of 1997.
For the second quarter of 1997, gross margins increased $10.6 million to $71.6
million, or 17.3% over the same period in 1996. For the six months ended June
30, 1997, gross margin increased $20.5 million, or 17.5% over the same period in
1996. Acquisitions accounted for 13.4% of the increase for the quarter and 12.8%
of the increase for the six months. As a percentage of sales, gross profit was
20.6% in the second quarter of 1997 compared to 20.9% in the second quarter of
1996. For the six months ended June 30, 1997, the percentage was 20.7% compared
to 21.1% a year ago. The decline in gross profit percentage points can be
analyzed as follows:
<PAGE>
<TABLE>
<CAPTION>
Three Months Ended Six Months Ended
June 30, 1997 June 30, 1997
------------------ ------------------
<S> <C> <C>
Sales Mix 0.2% 0.2%
Utility Markets (0.2) (0.2)
LIFO (0.1) (0.1)
Trading Margins (0.2) (0.3)
------- -------
(0.3)% (0.4)%
======= =======
</TABLE>
For both the quarter and six months ended June 30, 1997, stock sales (sales from
inventory) represented a greater percentage of total sales than direct sales
(sales shipped directly to the customer from the vendor). Stock sales have
historically had a gross margin percentage roughly twice the gross margin
percentage attributable to direct sales. Utility margins continue to be
negatively impacted by the trend of utility companies to consolidate their
purchasing, thereby reducing the number of their electrical suppliers and
increasing their ability to demand lower pricing. LIFO reserves were increased
by $0.2 million in the second quarter of 1997 for a total increase of $0.4
million for the six months ended June 30, 1997 compared to a decrease of $0.1
million for both the quarter and six months ended June 30, 1996 resulting from
inflation in copper prices in 1997 compared to deflation in 1996. The
deterioration in trading margin is the result of competitive pressures and
efforts to drive same store sales.
For the quarter ended June 30, 1997, selling and administrative expenses
increased $8.0 million to $54.5 million or 17.2% compared to the same period of
the prior year. For the six months ended June 30, 1997, selling and
administrative expenses increased $15.8 million to $107.3 million or 17.2%
compared to the six months ended June 30, 1996. As a percentage of sales,
selling and administrative expenses were 15.6% and 16.1%, respectively, for the
quarter and six months ended June 30, 1997 as compared to 15.9% and 16.4%,
respectively, for the quarter and six months ended June 30, 1996. For the
quarter ended March 31, 1997, these expenses were 16.6% of sales.
Excluding acquisitions and new and closed branches, selling and administrative
expenses in the second quarter of 1997 were up $1.9 million or 4.1% compared to
the same period of the prior year. For the six months, this increase was $4.2
million or 4.6%, whereas in the first quarter of 1997 the percentage increase
was 5.1% compared to the same period of the prior year. These results reflect
the elimination in the second quarter of 1997 of $1.0 million of nonrecurring
costs in the first quarter of 1997 and the Company's focus on controlling costs.
As a percentage of gross profit, selling and administrative expenses were 76.0%
and 77.8%, respectively, for the quarter and six months ended June 30, 1997
compared to 76.1% and 78.0%, respectively, for the same periods of the prior
year.
The increase in interest expense for the quarter and six months reflects an
increased level of debt related primarily to acquisitions.
LIQUIDITY AND CAPITAL RESOURCES
- -------------------------------
Total assets at June 30, 1997 increased $55.6 million or 13.0% compared to
year-end 1996, of which $36.0 million was attributable to 1997 acquisitions.
Cash increased $1.8 million to $16.2 million from $14.4 million at December 31,
1996. Cash provided by operating activities ($23.2 million), together with
borrowings under the line of credit arrangement ($11.6 million) and funds from
the exercise of stock options ($2.5 million) were used for acquisitions ($25.1
million), payment of debt ($9.7 million, including $2.1 million in connection
with the Chemco acquisition) and capital expenditures ($2.4 million). The
increase in cash provided by operating activities for the first six months of
1997 compared to the same period of the prior year is driven by operations and a
more favorable variance in operating assets.
Accounts and notes receivable, excluding acquisitions, increased by $20.4
million at June 30, 1997 compared to December 31, 1996. The number of days sales
represented by total accounts receivable was 48 days at June 30, 1997 compared
to 46 days at December 31, 1996. Inventory, excluding acquisitions, increased
$0.5 million. Total inventory days improved to 66 days at June 30, 1997 from 74
days at December 31, 1996.
Excluding acquisitions, capital expenditures were $2.4 million in the first six
months of 1997 mainly for the upgrade of computer systems.
Total liabilities increased $35.8 million. Short-term debt increased $11.6
million, primarily as a result of acquisitions. Trade accounts payable and other
liabilities, excluding acquisitions, increased $16.1 million. Total trade
accounts payable days improved from 42 days at December 31, 1996 to 49 days at
June 30, 1997. The reduction in long-term debt of $7.5 million includes the
March 1997 installment of $7.1 million on the 9.78% Senior Notes. The increase
in other long-term obligations includes $2.4 million of deferred purchase price
for the Southland acquisition.
Equity increased $19.8 million as a result of 1997 earnings of $15.9 million,
proceeds from the exercise of non-qualified stock options of $2.5 million and a
tax benefit of approximately $1.4 million associated with the exercise of the
options.
The Company's debt to equity ratio (defined as the ratio of debt including
capital lease obligations to total stockholders' equity) was 0.3 to 1 at both
June 30, 1997 and December 31, 1996. The current ratio was 1.4 at June 30, 1997
compared to 1.5 at December 31, 1996.
The Company's working capital requirements are generally met by internally
generated funds and short-term borrowings under the Company's credit agreement.
Management believes sufficient cash resources will be available to support its
long-term growth strategies through internally generated funds, credit
arrangements and the ability of the Company to obtain additional financing.
However, no assurance can be given that financing will continue to be available
on terms attractive to the Company.
<PAGE>
PART II - OTHER INFORMATION
Item 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
---------------------------------------------------
The Company held its annual meeting of stockholders on May 20, 1997.
At the meeting, the following persons were elected as directors of the Company
by the votes indicated below:
<TABLE>
<CAPTION>
NAME FOR AUTHORITY WITHHELD
- ---- --- ------------------
<S> <C> <C>
Pierre Chareyre 22.939,028 14,974
John B. Fraser 22.939,628 14,374
Gilles Guinchard 22.939,412 14,590
Eric Lomas 22.940,312 13,690
Alain Redheuil 22.939,412 14,590
</TABLE>
In addition, the terms as directors of the Company of R. Gary Gentles, Austin
List, Gerald Morris, Nicolas Sokolow and Serge Weinberg continued after the
meeting.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
--------------------------------
(a) EXHIBITS
--------
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
----------- -----------
<S> <C>
11.1 Computation of net income per common
and common equivalent shares.
15.1 Awareness letter of independent
accountants.
27.1 Financial Data Schedule (Filed with
EDGAR filing only)
</TABLE>
(b) REPORTS ON FORM 8-K
-------------------
During the quarter ended June 30, 1997 the Company filed a
Current Report on Form 8-K, dated May 20, 1997, reporting
under Item 4.
<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
undersigned thereunto duly authorized.
REXEL, INC.
Date: August 14, 1997 By:/S/ ALLAN GONOPOLSKY
--------------------
Allan Gonopolsky
Vice President and
Chief Accounting Officer
<PAGE>
Index to Exhibits
<TABLE>
<CAPTION>
EXHIBIT NO. DESCRIPTION
----------- -----------
<S> <C>
11.1 Computation of net income per common and
common equivalent shares.
15.1 Awareness letter of independent
accountants.
27.1 Financial Data Schedule (Filed with EDGAR
filing only)
</TABLE>
EXHIBIT 11.1
------------
REXEL, INC.
COMPUTATION OF NET INCOME PER
COMMON AND COMMON EQUIVALENT SHARE
(in thousands)
<TABLE>
<CAPTION>
THREE MONTHS
SIX MONTHS ENDED ENDED
JUNE 30, JUNE 30,
---------------------- ----------------------
1997 1996 1997 1996
======= ======= ======= =======
<S> <C> <C> <C> <C>
Income applicable to primary common and $15,936 $13,177 $ 9,099 $ 7,558
======= ======= ======= =======
common equivalent shares
Weighted average number of common shares and
common share equivalents outstanding during
the year
Common (net of treasury stock) 25,897 25,652 26,030 25,655
Options 255 348 219 268
------- ------- ------- -------
26,152 26,000 26,249 25,923
======= ======= ======= =======
</TABLE>
EXHIBIT 15.1
------------
August 13, 1997
Rexel, Inc.
Coral Gables, Florida
We have made a review, in accordance with standards established by the American
Institute of Certified Public Accountants, of the unaudited interim financial
information of Rexel, Inc. and subsidiaries as of and for the three-month period
ended June 30, 1997, as indicated in our report dated August 13, 1997; because
we did not perform an audit, we expressed no opinion on that information.
We are aware that our report referred to above, which is included in your
Quarterly Report on Form 10-Q for the quarter ended June 30, 1997, is
incorporated by reference in Registration Statement No. 33-32648 on Form S-8.
We are also aware that the aforementioned report, pursuant to Rule 436(c) under
the Securities Act of 1933, is not considered a part of the Registration
Statement prepared or certified by an accountant or a report prepared or
certified by an accountant within the meaning of Sections 7 and 11 of that Act.
/s/ DELOITTE & TOUCHE LLP
Miami, Florida
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM REXEL, INC.
FORM 10-Q FOR THE QUARTER ENDED JUNE 30, 1997 AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> JUN-30-1997
<CASH> 16,190
<SECURITIES> 0
<RECEIVABLES> 190,652
<ALLOWANCES> 3,246
<INVENTORY> 125,346
<CURRENT-ASSETS> 341,628
<PP&E> 87,204
<DEPRECIATION> 39,693
<TOTAL-ASSETS> 484,524
<CURRENT-LIABILITIES> 237,822
<BONDS> 22,053
0
0
<COMMON> 26,655
<OTHER-SE> 189,284
<TOTAL-LIABILITY-AND-EQUITY> 484,524
<SALES> 666,834
<TOTAL-REVENUES> 666,834
<CGS> 528,962
<TOTAL-COSTS> 528,962
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 190
<INTEREST-EXPENSE> 3,141
<INCOME-PRETAX> 27,714
<INCOME-TAX> 11,778
<INCOME-CONTINUING> 15,936
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 15,936
<EPS-PRIMARY> .61
<EPS-DILUTED> .61
</TABLE>
