FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter Ended May 31, 1997
Commission File Number 0-9599
HIA, INC.
(Exact name of registrant specified in its charter)
New York 16-1028783
State or other jurisdiction of I.R.S. Employer
ncorporation or organization Identification Number
4275 Forest Street
Denver, Colorado 80216
(Address of principal executive offices, zip code)
(303) 394-6040
(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 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: 10,303,383 fully
diluted shares of the Registrant's $.01 par value common stock were outstanding
at May 31, 1997
HIA, INC.
INDEX
Part 1. Financial Information
Item 1 Financial Statements. . . . . . . . . . . 3
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. . . . .. .9
Part 2. Other Information
Item 6. Exhibits . . . . . . . . . . . . . . . . . . . . 10
Part 1.
Item 1. Financial Statements
Consolidated Balance Sheets as of November 30, 1996
and May 31, 1997. . . . . . . . . . . . .4
Consolidated Statement of Earnings for the six months
May 31, 1997 and May 31, 1996 and the three months
ended May 31, 1997 and May 31, 1996. . . . . . . . . . . 5
Consolidated Statement of Cash Flows for the six months
ended May 31, 1997 and May 31, 1996. . . . . . . . . . . . . .. 6
HIA, INC. AND SUBSIDIARIES
<TABLE>
CONOLIDATED BALANCE SHEET
(Information as of November 30, 1995 is based upon an audited balance sheet. All
other information is unaudited.)
<CAPTION>
ASSETS May 31, November 30,
1997 1996
<S> <C> <C>
Current Assets:
Cash $ 229,362 $ 141,584
Receivables 2,546,005 1,528,131
Inventories 4,244,956 2,078,802
Other current assets 117,597 116,418
---------- ----------
Total current assets $7,137,920 $3,864,935
Property, Plant & Equipment,
at cost:
Land and Improvements $ 45,295 $ 45,295
Buildings 248,038 237,361
Equipment 415,573 366,591
---------- ----------
$ 708,906 $ 649,247
Less accumulated depreciation
and amortization $ 500,125 $ (485,105)
---------- -----------
Net property, plant and equipment 208,781 164,142
Other Assets/Investments 83,890 75,544
TOTAL ASSETS $7,430,591 $4,104,621
========== ==========
</TABLE>
[CAPTION]
The accompanying notes are an integral part of the Consolidated Financial
Statements.
HIA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET (Continued)
(Information as of November 30, 1996 is based upon an audited balance sheet.
All other information is unaudited).
<TABLE>
May 31, November 30,
LIABILITIES 1997 1995
<S> <C> <C>
Current Liabilities:
Notes Payable to Banks $2,078,613 $ 878,613
Accounts payable 2,743,898 603,820
Accrued expenses & other liabilities 238,063 354,837
---------- ---------
Total current liabilities $5,060,574 $1,837,270
STOCKHOLDERS' EQUITY
Common Stock of $.01 par value
Authorized 20,000,000 shares;
issued and outstanding 10,303,383 131,079 131,079
Additional paid-in capital 3,109,271 3,109,271
Accumulated Deficit ( 133,377)( 236,043)
--------- ----------
3,106,973 3,004,307
LESS: Treasury Stock:4,004,513 Shares ( 736,956) ( 736,956)
--------- -----------
at cost
TOTAL Stockholders' Equity 2,370,017 2,267,351
TOTAL LIABILITIES AND ========= ==========
STOCKHOLDERS' EQUITY $7,430,591 $4,104,621
</TABLE>
The accompanying notes are an integral part of the Consolidated
Financial Statements.
<TABLE>
<CAPTION>
HIA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
Six Months Ended Three Months Ended
May 31, May 31, May 31, May 31,
1996* 1997 1996* 1997
<S> <C> <C> <C> <C>
Net Sales $7,199,397 $7,021,381 $5,417,009 $5,433,774
Cost of Sales 4,828,026 4,767,543 3,626,795 3,639,093
---------- --------- ---------- ----------
Gross Profit 2,371,371 2,253,838 1,790,214 1,794,681
Selling, general & admin. $2,176,761 $1,849,544 $1,194,007 $1,029,633
---------- ---------- ---------- -----------
expenses
Operating Income (Loss) 194,610 404,294 596,137 765,048
Other income (Deduction):
Interest Income 8,209 3,643 3,681 (35)
Interest Expense (60,005) (51,085) (48,291) (34,664)
Misc. Income (expense) 8,852 5,330 (12,489) 3,046
--------- ---------- ---------- ----------
Total Other Income (42,944) ( 42,112) (57,099) (31,653)
(deductions)
Income before tax 151,666 362,182 539,038 733,395
Income Tax 49,000 141,250 49,000 141,250
NET INCOME (LOSS) $ 102,666 $ 220,932 $ 490,038 $592,145
======== ======== ======= =======
Income (Loss) per Common .01 .02 .05 .06
Share
Weighted average shares
outstanding 10,303,383 10,443,394 10,303.383 10,443,394
</TABLE>
The accompanying notes are an integral part of the Consolidated
Financial Statements.
*The periods shown as of May 31, 1996 have been restated from the 10Q report
filed for the second quarter of 1996 to reflect the accrual of $162,890 of
additional SG&A expenses and $141,250 of federal and state taxes.
HIA, INC. AND SUBSIDIARIE
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF CASH FLOWS
For the six months ended
May 31, May 31,
1997 1996*
OPERATING ACTIVITIES:
<S > <C> <C>
Net Income before extraordinary item $102,666 $ 220,932
Adjustments to reconcile net income
to net cash used by operating
activities:
Depreciation and amortization 15,020 10,609
Changes in current assets and
current liabilities
Accounts receivable (1,017,874) (1,334,539)
Inventories (2,166,154) (1,409,594)
Other current assets (1,179) ( 57,636)
Notes payable to banks 1,200,000 500,500
Accounts payable 2,140,078 2,072,991
Other current liabilities (116,774) (109,242)
----------- -----------
NET CASH (USED IN) PROVIDED BY
OPERATING ACTIVITIES 155,783 (105,979
=========== ===========
INVESTING ACTIVITIES
Disposal of property and equipment ( 59,659) 4,132
(Increase) decrease in other noncurrent
assets ( 8,346) (3,180)
(Purchase) or sale of treasury stock -0- (8,235)
----------- ---------
NET CASH (USED IN) PROVIDED BY
INVESTING ACTIVITIES (68,005) (7,283)
======== =======
NET INCREASE (DECREASE) IN CASH AND CASH 87,778 (113,262)
EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 141,584 115,112
CASH AND CASH EQUIVALENTS, END OF QUARTER 229,362 1,850
======== =======
The accompanying notes are an integral part of the Consolidated Financial Statements.
(*see note from page 6)
</TABLE>
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-Q and do not include all the
information and footnotes required by generally accepted accounting
principles for complete financial statement In the opinion of management,
all adjustments (consisting of normal recurring adjustments) considered
necessary for fair presentation have been included. Operating results for
the six months ended May 31, 1997 are not necessarily indicative of the
results that may be obtained for the year ending November 30, 1997. These
statements should be read in conjunction with the financial statements and
notes thereto included in the Registration's form 10K for the year ended
November 30, 1996 filed with the Securities and Exchange Commission on
February 25, 1997.
Item 2. Management's Discussion and Analysis
Financial condition and Results of Operations
The Registrant's working capital increased by $49,681 during the six
months ended May 31, 1997 principally as a result of the following factors:
(1) An operating cash income of $117,681
(2) Reductions to other assets of $8,346
(3) Additions of equipment of $59,659
At May 31, 1997 the Company's subsidiary had lines of credit totaling
$4,000,000 of which approximately $2,200,000 was available for future
borrowing, The lines of credit are guaranteed by the Company.
Results of Operations
Net sales for the three months ended May 31, 1997 were down $16,765 or
1/2 of 1% less than the second quarter of 1996.
The gross profit was 33% during the three months ended May 31, 1997,
compared to the second quarter of 1996 at 33% of net sales.
The selling, general and administrative expenses were up $164,444 for the
quarter ended May 31, 1997 as compared to the second quarter of the previous
year. Other deductions were up $25,446 as compared to the second quarter of
1996, principally as a result of the increase in interest expense on the
line of credit.
The income from operations for the second quarter of 1996 was $168,911
less than second quarter of the previous year primarily attributable to the
increase in SG&A expenses.
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,
Registrant has duly caused this report to be signed on its behalf by the
under signed hereunto duly authorized.
HIA, INC.
Date------------------------------ ----------------------------
Alan C. Bergold
Chief Financial Officer &
Executive Vice-President
[TYPE] EX-27
[DESCRIPTION] Artticle 5 Fin. Data Scehdule for year Ended 10-KSB
[ARTICLE] 5
[MULTIPLIER] 1,000
<TABLE>
<S> <C>
[PERIOD-TYPE] 12-MOS
[FISCAL-YEAR-END] NOV-30-1997
[PERIOD-START] DEC-01-1996
[PERIOD-END] MAY-31-1997
[CASH] 229
[SECURITIES] 0
[RECEIVABLES] 2546
[ALLOWANCES] 0
[INVENTORY] 4245
[CURRENT-ASSETS] 7138
[PP&E] 709
[DEPRECIATION] 500
[TOTAL-ASSETS] 7431
[CURRENT-LIABILITIES] 5061
[BONDS] 0
[COMMON] 131
[PREFERRED-MANDATORY] 0
[PREFERRED] 0
[OTHER-SE] 2976
[TOTAL-LIABILITY-AND-EQUITY] 7431
[SALES] 7021
[TOTAL-REVENUES] 7021
[CGS] 4768
[TOTAL-COSTS] 6617
<OTHER-EXPENCES> 0
[LOSS-PROVISION] 0
<INTEREST-EXPENCE> 51
[INCOME-PRETAX] 362
[INCOME-TAX] 141
<INCOMING-CONTINUING> 221
[DISCONTINUED] 0
[EXTRAORDINARY] 0
[CHANGES] 0
[NET-INCOME] 221
[EPS-PRIMARY] .02
[EPS-DILUTED] .02
</TABLE>
