UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-QSB
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended August 31, 1996
Commission File Number 0-9599
HIA, INC.
(Exact name of registrant as specified in its charter)
New York 16-1028783
State or other jurisdiction I.R.S. Employer
of incorporation Identification
or organization Number
4275 Forest Street
Denver, Colorado 80216
(Address of principal executive offices, zip code)
(303) 394-6040
(Registrant's telephone number, including area code)
- -------------------------------------------------------
(Former name, former address and former fiscal year,
if changed since last report.)
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 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 practicable date: 10,443,394 shares of the
Registrant's $.01 par value common stock were
outstanding at August 31, 1996
HIA, INC.
INDEX
Part 1. Financial Information
Item 1. Consolidated Financial Statements. . . .
. . . . .
Item 2. Management's Discussion and Analysis
of Financial Condition and Results
of Operations
Part 2. Other Information
Item 6. Exhibits. . . . . . . . . . . . . . .
Part 1.
Item 1. Financial Statements
Consolidated Balance Sheets as of November 30,
1995 and August 31, 1996
Consolidated Statement of Earnings for the
ended August 31, 1995 and August 31, 1996 and
the three months ended August 31, 1995 and
August 31, 1996
Consolidated Statement of Cash Flows for the
nine months ended August 31, 1995 and August
31, 1996
HIA, INC. AND SUBSIDIARIES
<TABLE>
CONSOLIDATED BALANCE SHEET
(Information as of November 30, 1995 is based upon an
audited balance sheet. All other information is
unaudited.)
<CAPTION>
August 31, November 30,
ASSETS 1996 1995
<S> <C> <C>
Current Assets:
Cash $ 29,895 $ 115,112
Receivables 2,384,135 1,298,971
Inventories 3,449,905 1,966,284
Other current assets 269,180 46,442
--------- ----------
Total current assets $ 6,133,115 $ 3,426,809
Property, Plant & Equipment,
at cost:
Land and improvements $ 45,295 $ 45,295
Buildings 237,361 212,904
Equipment 386,985 361,557
--------- ---------
$ 669,641 $ 619,756
Less accumulated
depreciation and
amortization (501,225) (491,055)
--------- ---------
Net property, plant and
equipment 168,416 128,701
Other Assets/Investments 75,608 72,366
--------- ---------
TOTAL ASSETS $ 6,377,139 $ 3,627,876
========= =========
</TABLE>
(Information as of November 30, 1995 is based upon an
audited balance sheet. All other information is
unaudited).
<TABLE>
<CAPTION>
August 31, November 30,
LIABILITIES 1996 1995
<S> <C> <C>
Current Liabilities:
Notes payable to banks $ 1,734,780 $ 764,280
Current installments of
long term obligations 0 6,504
Accounts payable 1,289,745 314,783
Accrued expenses & other
liabilities 792,866 503,794
---------- -----------
Total current
liabilities $ 3,817,391 $ 1,589,361
STOCKHOLDERS' EQUITY
Common Stock of $.01
par value Authorized
20,000,000 shares;
issued and outstanding 131,079 131,079
10,443,394
Additional paid-in
capital 3,109,271 3,109,271
Deficit ( 244,061) ( 773,712)
----------- ----------
2,996,289 2,446,638
LESS: Treasury Stock:
2,664,502 Shares ( 436,541) ( 428,123)
Stockholders
Equity 2,559,748 2,038,515
---------- ---------
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 6,377,139 $ 3,627,871
=========== ===========
<FN>
The accompanying notes are an integral part of the
Consolidated Financial Statements.
</TABLE>
<TABLE>
HIA, INC. AND SUBSIDIARIES
<CAPTION>
CONSOLIDATED STATEMENT OF EARNINGS
Nine Months Three Months
Ended (1) Ended (1)
(Restated) (Restated)
August August August August
31,1996 31,1995 31,1996 31,1995
<S> <C> <C> <C> <C>
Net Sales
$ 13,137,931 $11,431,335 $6,116,550 $5,666,033
Cost of
Sales (9,008,605) (7,918,745)(4,241,062)(3,962,979)
---------- ---------- ---------- ----------
Gross
Profit 4,129,326 3,512,590 1,875,488 1,703,054
Selling,
general
& admin.
expenses (3,181,572) 2,895,226)(1,332,028)(1,194,962)
----------- --------- ---------- -----------
Operating
Profit
(Loss) 947,754 617,364 543,460 508,092
Other
Income
(Deductions):
Interest
income 10,764 10,660 7,121 5,171
Interest
expense ( 88,694) ( 97,221) (37,609) (55,366)
Misc.
income
(expense) 10,827 49,091 5,497 14,193
Total other
income
(deductions)( 67,103) ( 37,470) (24,991) (36,002)
------- -------- ------- ------
Income
before
taxes 880,651 579,894 518,469 472,090
Income
Taxes 351,000 226,000 209,750 226,000
------- ------- ------- -------
NET INCOME $ 529,651 $ 353,894 $ 308,719 $ 246,090
======= ======== ======= ========
Income per
Common
Share $ .05 $ .03 $ .03 $ .02
Income per
common
share
fully
diluted .05 .03 .03 .02
Weighted
Average
Share
Outstanding 10,443,394 11,906,405 10,443,394 11,906,405
Fully
diluted
shares
outstanding 11,043,394 11,906,405 11,043,394 11,906,405
</TABLE>
The accompanying notes are an integral part of the
Consolidated Financial Statements. (1) The prior year
earnings and cash flow statements have been restated to
reflect the accrual of $112,890 for officer's bonuses,
$50,000 for profit sharing contribution and an
estimated amount for federal and state Taxes.
HIA, INC. AND SUBSIDIARIES
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF CASH FLOWS
For the nine months ended
August 31, August 31,
1996 1995
(Restated)
OPERATING ACTIVITIES:
<S> <C> <C>
Net Income before
extraordinary item $ 529,651 $ 353,894
Adjustments to
reconcile net
income to net cash
used by operating
activities
Depreciation and
amortization 10,170 9,200
Amortization of
Deferred Gain 0 (17,660)
Changes in current
assets and current
liabilities
Accounts receivable (1,085,164) (1,362,033)
Inventories (1,483,621) (1,561,316)
Other current assets ( 222,738) 5,873
Notes payable to
banks 970,500 1,823,548
Accounts payable 974,962 765,310
Other current
liabilities 289,072 49,807
NET CASH PROVIDED
BY OPERATING ACTIVITIES ( 17,168) 66,623
INVESTING ACTIVITIES
(Purchase) Disposal of
property and equipment ( 49,885) ( 53,969)
Proceeds from the sale
of property, plant and
equipment 0 0
(Increase)Decrease in
other noncurrent assets ( 3,242) 63,543
NET CASH USED BY INVESTING
ACTIVITIES ( 53,127) 9,574
FINANCING ACTIVITIES
Repayments of long-term
obligations ( 6,504) ( 5,012)
Proceeds from sale of
Treasury Stock 0 33,401
Purchases of Treasury
Stock ( 8,418) 0
--------- ------
NET CASH USED BY FINANCING
ACTIVITIES ( 14,922) 28,389
NET INCREASE (DECREASE)
IN CASH AND CASH EQUIV ( 85,217) 104,586
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR 115,112 17,719
------- -------
CASH AND CASH EQUIVALENTS,
END OF QUARTER 29,895 122,305
======= =======
</TABLE>
The accompanying notes are an integral part of the
consolidated financial statements.
HIA, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A. Basis for Presentation
The accompanying consolidated financial statements
have been prepared in accordance with the instructions
of Form 10-QSB and do not include all the information and
footnotes required by generally accepted accounting
principles for complete financial statements. In the
opinion of management, all adjustments (consisting of
normal recurring adjustments) considered necessary for
fair presentation have been included. Operating
results for the nine months ended August 31, 1996 are
not necessarily indicative of the results that may be
obtained for the year ending November 30, 1996 These
statements should be read in conjunction with the
financial statements and notes thereto included in
the Registrant's Form 10-KSB filed with the Securities
and Exchange Commission on February 25, 1996.
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
The Registrant's working capital increased by
$478,276 during the nine months ended August 31, 1996
principally as a result of the following factors:
(1) An operating cash income of $539,821
(2) Payments of long term obligations of $6,504
(3) Additions to other noncurrent assets of $3,242
(4) Additions to property, plant & equipment of $49,885
(5) Purchase of Treasury Stock of $8,418
At August 31, 1996, the Company's subsidiary had
lines of credit totaling $4,000,000 of which
approximately $1,400,000 was available for future
borrowings. The lines of credit are guaranteed by the
Company.
Results of Operations
Net sales for the three months ended August 31,
1996 were up $450,517 or 8% more than the third quarter
of 1995.
The gross profit was 30.7% during the three months
ended August 31, 1996, compared to the third quarter of
1995 at 30.1% of net sales.
The selling, general and administrative expenses
were up $137,066 or 11.5% for the quarter ended August
31,1996 over the third quarter of the previous year,
primarily due to the additional expense of setting up a
new branch operation located in Cheyenne, Wyoming.
Other deductions were down $11,011 as compared to the
third quarter of 1995.
Net income from operations for the third quarter of
1996 was $35,368 higher than the third quarter of the
previous year
Part II
Item 6. Exhibits
(a) The following exhibits are filed with this
report
NONE
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 hereunto
duly authorized.
HIA, INC.
Registrant
November 5, 1996 Alan C. Bergold
Date Alan C. Bergold
Chief Financial
Officer & Vice President
