FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, CD 20549
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarter ended February 28, 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
incorporation or organization
Identification Number
4275 Forest Street
Denver, Colorado 80216
(Address of principal execute 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 February 29, 1997.
HIA, INC.
INDEX
Part 1. Financial Information
Item 1. Financial Statements
Item 2. Managements Discussion and Analysis of
Financial Condition and Results of Operation
Part 2. Other Information
Item 6. Exhibits
Part 1.
Item 1. Financial Statements
Consolidated Balance Sheets as of November 30,
1996 and February 28, 1997
Consolidated Statement of Earnings for the three
months ended February 29, 1996 and February 28 1997
Consolidated Statement of Cash Flows for the three
months ended February 29, 1996 and February 28, 1997
<TABLE>
<CAPTION>
HIA, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Information as of November 30, 1996 is based upon an audited
balance sheet. All other information is unaudited.)
ASSETS February 28, November 30,
1997 1996
<S> <C> <C>
Current Assets:
Cash $ 2,650 $ 141,584
Receivables 1,145,462 1,528,131
Inventories 4,024,543 2,078,802
Other current assets 107,123 116,418
- ----------------------------------------------------------------
Total Current Assets $ 5,279,778 $ 3,864,935
Property, Plant and
Equipment,at Cost:
Land and Improvements $ 45,295 $ 45.295
Buildings and
Improvements 242,801 237,361
Equipment 402,073 366,591
- ---------------------------------------------------------------
$ 690,169 $ 649,247
Less Accumulated
Depreciation
and Amortization $ (492,721) $ (485,105)
- ----------------------------------------------------------------
Net Property, Plant
and Equipment $ 197,448 $ 164,142
Other Assets/Investment $ 95,571 $ 75,544
- ---------------------------------------------------------------
TOTAL ASSETS $ 5,572,797 $ 4,104,621
=================================================================
The accompanying notes are an integral part of the Consolidated
Financial Statements.
</TABLE>
<TABLE>
<CAPTION>
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.)
LIABILITIES February 28 November 30,
1997 1996
<S> <C> <C>
Current Liabilities:
Notes Payable to Banks $ 1,068,613 $ 878,613
Accounts Payable 2,584,236 603,820
Accrued Expenses &
Other Liabilities 39,969 354,837
- -----------------------------------------------------------------
Total Current Liabilities $ 3,692,818 $ 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 (623,415) (236,043)
- -----------------------------------------------------------------
$ 2,616,935 $ 3,004,307
Less Treasury Stock:
4,004,513 Shares at Cost $ (736,956) $ (736,956)
- -----------------------------------------------------------------
TOTAL Stockholders' Equity $ 1,879,979 $ 2,267,351
=================================================================
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 5,572,797 $ 4,104,621
<CAPTION>
The accompanying notes are an integral part of the Consolidated
Financial Statements.
</TABLE>
<TABLE>
HIA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF EARNINGS
Three Months Ended
February 28, February 29,
1997 1996
<S> <C> <C>
Net Sales $1,782,388$ $1,587,607
Cost of Sales 1,201,231 1,128,450
----------- -----------
Gross Profit 581,157 459,157
Selling, General & Admin. Expenses 982,684 819,911
-------- --------
Operating Loss (401,527) (360,754)
Other Income (Deduction):
Interest Income 4,528 3,678
Interest Expense (11,714) (16,421)
Misc. Income (expense) 21,341 2,284
--------- ---------
Total Other Income (deductions) 14,155 (10,459)
NET INCOME$ $(387,372) $(371,213)
Loss per Common Share (.04) (.04)
Weighted Average Shares
Outstanding 10,303,383 10,489,394
</TABLE>
The accompanying notes are an integral part of the Consolidated
Financial Statements.
<TABLE>
HIA, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
For the Three Months Ended
February 28, February 29,
1997 1996
<CAPTION>
OPERATING ACTIVITIES:
<S> <C> <C>
Net Loss before extraordinary
item $ (387,372) $ (371,213)
Adjustments to reconcile
net income to net cash
used by operating activities:
Depreciation and Amortization 7,616 9,003
Changes in current assets and
current liabilities
Accounts Receivable 382,669 450,019
Inventories (1,945,741) (1,787,503)
Other Current Assets 9,295 (2,228)
Notes Payable to Banks 190,000 31,000
Accounts Payable 1,980,416 2,078,299
Other Current Liabilities (314,868) (476,821)
----------- -----------
NET CASH (USED IN) PROVIDED BY
OPERATING ACTIVITIES $ (77,985) $ (69,444)
INVESTING ACTIVITIES:
Purchase of Property and
Equipment (40,922) (4,370)
Proceeds from the Sale
of Property, Plant and
Equipment 0 0
(Increase) Decrease in Other
Non-current Assets. (20,027) 0
Purchase of Treasury Stock 0 0
NET CASH (USED IN) PROVIDED
BY INVESTING ACTIVITIES $ (60,949) $ (4,370)
FINANCING ACTIVITIES,:
Repayments of Long-term
Obligations 0 0
NET CASH IN BY FINANCING
ACTIVITIES 0 0
NET INCREASE (DECREASE) IN CASH
AND CASH EQUIVALENTS $ (138,934) $ (73,814)
Cash and Cash Equivalents,
Beginning of Year 141,584 115,112
Cash and Cash Equivalents,
End of Quarter $ 2,650 $ 41,298
---------- ---------
</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-Q
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 three months ended February 28, 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 Registrant's Form 10-K 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 of Financial
Condition and Results of Operations
The Registrant's working capital decreased by $440,705 during
the three months ended February 28, 1997 principally as a result
of the following factors:
(1) An operating cash loss of $379.756
(2) Purchase of equipment of $40,922
(3) Increase in non-current assets of $20,027
At February 28, 1997, the company's subsidiary had lines of
credit totaling $4,000,000 of which $3,121,387 was available for
future borrowings. The lines of credit are guaranteed by the
company.
Results of Operations
Net sales for the three months ended February 28, 1997 were up
$194,781 or 12% greater than the first quarter of 1996.
The gross profit was 32.6% during the three months ended
February 28, 1997, compared to the first quarter of 1996 at 28.9%
of net sales.
The selling, general and administrative expenses were up
$162,773 for the quarter ended February 28, 1997 as compared to
the first quarter of the previous year principally as the result
of operating expenses of a branch operation located in Cheyenne,
Wyoming opened in June 1996 and a branch operation located in
Broomfield, Colorado opened in February 1997. Other deductions
were down $24,614 as compared to the first quarter of 1996.
The loss from operations for the first quarter of 1997 was
$40,773 more than the first quarter of the previous year
primarily attributable to the increase in SG&A expenses offset
substantially by the increase in gross profit.
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.
Date:4/14/97 Alan C. Bergold
President
Vice President
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> Nov-30-1997
<PERIOD-START> Dec-01-1996
<PERIOD-END> Feb-28-1997
<CASH> 3
<SECURITIES> 0
<RECEIVABLES> 1145
<ALLOWANCES> 0
<INVENTORY> 4025
<CURRENT-ASSETS> 107
<PP&E> 690
<DEPRECIATION> 493
<TOTAL-ASSETS> 5573
<CURRENT-LIABILITIES> 3693
<BONDS> 0
<COMMON> 131
0
0
<OTHER-SE> 1750
<TOTAL-LIABILITY-AND-EQUITY> 5573
<SALES> 1782
<TOTAL-REVENUES> 1782
<CGS> 1201
<TOTAL-COSTS> 983
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 12
<INCOME-PRETAX> (387)
<INCOME-TAX> 0
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (387)
<EPS-PRIMARY> (.04)
<EPS-DILUTED> (.04)
</TABLE>
