FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For Quarter Ended August 26, 1995
Commission File Number 0-1500
EVANS, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 36-1050870
(State or other jurisdiction of (I.R.S. Employer
Incorporation or organization) Identification Number)
36 South State Street, Chicago, Illinois 60603
(Address of principal executive office) (Zip Code)
Registrant's telephone number, including area code 312-855-2000
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 practicable date: as of
October 6, 1995 4,918,301 shares of common stock, $.20 par value, were
outstanding.
<PAGE>
EVANS, INC. AND SUBSIDIARIES
INDEX
Page No.
Part I. Financial Information
Condensed Consolidated Balance Sheets -
August 26, 1995, August 27, 1994
and February 25, 1995 2
Condensed Consolidated Statements of Operations -
Thirteen and Twenty-six weeks ended
August 26, 1995 and August 27, 1994 3
Condensed Consolidated Statements of Cash Flows -
Twenty-six weeks ended August 26, 1995
and August 27, 1994 4
Notes to Condensed Consolidated Financial Statements 5 - 6
Management's Discussion and Analysis of Financial
Condition and Results of Operations 7 - 9
Part II. Other Information 10
Signatures 11
Index to Exhibits 12
<PAGE>
<TABLE>
PART I. FINANCIAL INFORMATION
Evans, Inc. and Subsidiaries
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
<CAPTION>
Aug. 26, 1995 Aug. 27, 1994 Feb. 25, 1995
------------- ------------- -------------
<S> <C> <C> <C>
ASSETS
- ------
Current assets:
Cash and cash equivalents $ 160,000 $ 160,000 $ 1,134,000
Accounts receivable (net) 13,547,000 15,410,000 17,105,000
Merchandise inventories 16,946,000 19,950,000 16,401,000
Prepaid expenses and
other assets 765,000 1,141,000 512,000
Deferred income taxes 1,810,000
------------- ------------- -------------
Total current assets 31,418,000 38,471,000 35,152,000
------------- ------------- -------------
Property and equipment 22,893,000 28,263,000 26,489,000
Accumulated depreciation
and amortization (12,416,000) (15,929,000) (15,885,000)
------------- ------------- -------------
Net property and equipment 10,477,000 12,334,000 10,604,000
------------- ------------- -------------
Other assets 2,870,000 1,756,000 3,060,000
Deferred income taxes 1,300,000
------------- ------------- -------------
$44,765,000 $53,861,000 $48,816,000
============= ============= =============
LIABILITIES AND SHAREHOLDERS'EQUITY
- -----------------------------------
Current liabilities:
Notes payable - bank $ 256,000 $ 1,400,000
Current portion of
revolving debt obligations $ 2,724,000
Current portion of
long-term debt 692,000 362,000
Accounts payable 7,279,000 7,829,000 8,911,000
Accrued liabilities 7,123,000 6,074,000 6,930,000
------------- ------------- -------------
Total current liabilities 17,818,000 14,159,000 17,603,000
------------- ------------- -------------
Non-current portion of
revolving debt obligations 7,000,000
Long-term debt 2,612,000 8,565,000 9,653,000
------------- ------------- -------------
Other liabilities 11,000 28,000 16,000
------------- ------------- -------------
Shareholders'equity:
Preferred stock,
3,000,000 shares
authorized, none issued
Common stock, 6,333,433
shares issued 1,267,000 1,267,000 1,267,000
Capital in excess of
par value 15,660,000 15,660,000 15,660,000
Retained earnings 4,995,000 18,780,000 9,215,000
------------- ------------- -------------
21,922,000 35,707,000 26,142,000
Treasury stock (1,415,134
shares at cost) (4,598,000) (4,598,000) (4,598,000)
------------- ------------- -------------
Total shareholders'equity 17,324,000 31,109,000 21,544,000
------------- ------------- -------------
$44,765,000 $53,861,000 $48,816,000
============= ============= =============
<FN>
See accompanying notes to condensed consolidated financial statements.
</FN>
- 2 -
</TABLE>
<PAGE>
<TABLE>
Evans, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
<CAPTION>
Thirteen weeks ended Twenty-six weeks ended
-------------------------- --------------------------
August 26, August 27, August 26, August 27,
1995 1994 1995 1994
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Net sales $ 7,999,000 $ 8,608,000 $20,299,000 $20,289,000
Service revenues 4,328,000 3,766,000 9,309,000 8,507,000
------------ ------------ ------------ ------------
12,327,000 12,374,000 29,608,000 28,796,000
------------ ------------ ------------ ------------
Costs and expenses:
Cost of goods and
services sold, buying
and occupancy costs 8,978,000 8,969,000 20,956,000 20,040,000
Selling and
general expenses 5,396,000 5,778,000 12,021,000 12,403,000
Provision for
doubtful accounts 102,000 101,000 250,000 267,000
Interest expense 324,000 220,000 604,000 437,000
Other income, net -- (9,000) (3,000) (42,000)
------------ ------------ ------------ ------------
14,800,000 15,059,000 33,828,000 33,105,000
------------ ------------ ------------ ------------
Loss before credit
for income taxes (2,473,000) (2,685,000) (4,220,000) (4,309,000)
Credit for income taxes -- 1,128,000 -- 1,810,000
------------ ------------ ------------ ------------
Net loss $(2,473,000) $(1,557,000) $(4,220,000) $(2,499,000)
============ ============ ============ ============
Net loss per
common share $(.50) $(.32) $(.86) $(.51)
============ ============ ============ ============
Cash dividends
per common share -- -- -- --
Weighted average number
of common shares
outstanding 4,918,301 4,918,301 4,918,301 4,918,301
============ ============ ============ ============
<FN>
See accompanying notes to condensed consolidated financial statements.
</FN>
- 3 -
</TABLE>
<PAGE>
<TABLE>
Evans, Inc. and Subsidiaries
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
<CAPTION>
Twenty-six weeks ended
------------------------------
Aug. 26, 1995 Aug. 27, 1994
-------------- --------------
<S> <C> <C>
Cash Flows from Operating Activities:
- ------------------------------------------------
Net loss $(4,220,000) $(2,499,000)
Adjustments to reconcile net loss to net cash
used in operating activities:
Depreciation and amortization 691,000 713,000
Provision for doubtful accounts 250,000 267,000
Change in assets and liabilities:
Accounts receivable 3,308,000 2,621,000
Merchandise inventories (545,000) (5,788,000)
Prepaid expenses and other current assets (253,000) (157,000)
Deferred income taxes (1,810,000)
Other assets 100,000 (21,000)
Accounts payable (1,632,000) 1,267,000
Accrued liabilities 193,000 935,000
Other liabilities (5,000) (41,000)
-------------- --------------
Net cash used in operating activities (2,113,000) (4,513,000)
Cash Flows from Investing Activities:
- ------------------------------------------------
Proceeds from the sale of property and equipment 10,000
Additions to property and equipment (484,000) (1,513,000)
-------------- --------------
Net cash used in investing activities (474,000) (1,513,000)
Cash Flows from Financing Activities:
- ------------------------------------------------
Proceeds from short-term borrowing 1,654,000 256,000
Principal payments on long-term debt (41,000)
-------------- --------------
Net cash used in financing activities 1,613,000 256,000
-------------- --------------
Net decrease in cash and cash equivalents (974,000) (5,770,000)
Cash and cash equivalents at beginning of period 1,134,000 5,930,000
-------------- --------------
Cash and cash equivalents at end of period $ 160,000 $ 160,000
============== ==============
Supplemental Disclosures of Cash Flow Information:
- --------------------------------------------------
Cash paid during the period for:
Interest $532,000 $438,000
Income taxes 15,000 123,000
<FN>
See accompanying notes to condensed consolidated financial statements.
</FN>
- 4 -
</TABLE>
<PAGE>
EVANS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. The financial information included herein was prepared in
conformity with generally accepted accounting principles and such
principles were applied on a basis consistent with those
reflected in the 1995 Form 10-K Annual Report filed with the
Securities and Exchange Commission. The accompanying financial
data should be read in conjunction with the notes to consolidated
financial statements contained in the 1994 Form 10-K Annual
Report.
The information furnished herein, other than the Condensed
Consolidated Balance Sheet as of February 25, 1995, is unaudited
and includes all adjustments and accruals consisting only of
normal recurring adjustments which are, in the opinion of
management, necessary for a fair statement of results for the
interim periods. The Condensed Consolidated Balance Sheet as of
February 25, 1995 has been derived from, and does not include all
the disclosures contained in the audited financial statements as
of and for the year ended February 25, 1995.
2. Because of the seasonal nature of the Company's business,
operating results for the first twenty-six weeks are not
considered to be indicative of the results that may be expected
for the full year. Historically, the Company realizes a major
portion of its annual revenues and most of its earnings in the
fourth quarter of its fiscal year.
3. Common share equivalents were not included in the computation of
earnings per share for the thirteen and twenty-six weeks ended
August 26, 1995 and August 27, 1994 because these periods
resulted in net losses and the effect would be antidilutive.
4. On May 31, 1995, the Company finalized an agreement with a new
lender to refinance the existing senior secured debt and provide
for the Company's working capital needs. The agreement provides
for a three year $23,500,000 credit facility which includes two
term loans totaling $2,000,000. The agreement provides for
interest at 1.5% and 2% over the base (prime) rate for the
revolving facility and the term loans, respectively. The
agreement includes provisions which require the maintenance of
certain financial covenants (the most restrictive of which is a
minimum debt service coverage ratio), prohibit the payment of
cash dividends and require a commitment fee of one-third of one
percent per annum on the unused portion of the revolving loan.
Also, all assets, rights, interest and properties of the Company
are pledged as collateral for the revolving and term loan
obligations.
- 5 -
<PAGE>
EVANS, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS, Continued
(Unaudited)
5. Approximately $198,000 of employee termination benefits were
charged against the restructuring liability during the first
twenty-six weeks of fiscal 1996. As of August 26, 1995, seventy-five
employees had been terminated as part of the restructuring. In
addition, approximately $501,000 of costs associated with store
closings were charged against the restructuring liability during the
first twenty-six weeks of fiscal 1996.
6. The income tax credits for the second quarter and first six
months of $1,038,000 and $1,772,000, respectively, were offset by
increases in the Company's valuation allowance with respect to the
future tax benefits of the net operating losses as a result of the
uncertainty of their ultimate realization.
- 6 -
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Liquidity and Capital Resources
Cash and cash equivalents at August 26, 1995 were $160,000 as compared
to $1,134,000 at February 25, 1995. The decrease was due to cash used
in operating activities of $2,113,000 and cash used in investing
activities of $474,000, partially offset by cash provided by financing
activities of $1,613,000.
The cash used in operating activities was due primarily to the net
loss of $4,220,000 and a decrease in accounts payable of $1,632,000,
partially offset by a decrease in accounts receivable of $3,308,000.
The cash used in investing activities was due primarily to additions
to property and equipment of $484,000, partially offset by proceeds
from the sale of property and equipment of $10,000.
The cash provided by financing activities was largely the result of a
net increase in short-term debt of $1,654,000, partially offset by a
net decrease in long-term debt of $41,000. The classification of the
non-current portion of the revolving debt obligation was based on
estimates of availability and projected cash flow for the prospective
twelve month period.
Working capital at August 26, 1995 was $13,600,000 as compared to
$17,549,000 at February 25, 1995.
On May 31, 1995, the Company finalized an agreement with a new lender
to refinance the existing senior secured debt and provide for the
Company's working capital needs. The agreement provides for a three
year $23,500,000 credit facility which includes two term loans
totaling $2,000,000. The agreement provides for interest at 1.5% and
2% over the base (prime) rate for the revolving facility and the term
loans, respectively. The agreement includes provisions which require
the maintenance of certain financial covenants (the most restrictive
of which is a minimum debt service coverage ratio), prohibit the
payment of cash dividends and require a commitment fee of one-third of
one percent per annum on the unused portion of the revolving loan.
Also, all assets, rights, interest and properties of the Company are
pledged as collateral for the revolving and term loan obligations.
Results of Operations
Total revenues for the second quarter ended August 26, 1995 decreased
$47,000 (0.4%) as compared to the same period last year. Fur
merchandise sales decreased $383,000 (11.2%) due primarily to a
decrease of $1,200,000 (37.0%) in sales at comparable locations and a
decrease of $188,000 in sales associated with three Company-owned
locations closed during the first quarter of the current fiscal year,
partially offset by $1,005,000 in sales associated with leased
locations acquired during the fourth quarter of the prior fiscal year.
Women's ready-to-wear sales decreased $226,000 (4.4%) due primarily to
a decrease of $299,000 in
- 7 -
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Results of Operations, continued
sales associated with the closing of the Company's Southlake location
in Merrilville, Indiana, during the first quarter, partially offset by
an increase of $73,000 (1.5%) at comparable locations. The increase
at comparable locations was largely the result of a $266,000 (5.9%)
increase in sales of non-outerwear apparel partially offset by a
$193,000 (54.8%) decrease in sales of apparel outerwear. The Company
believes that the record setting warm weather experienced in virtually
all of its markets from July on adversely impacted the sales of fur
and apparel outerwear. As a result, August fur and apparel outerwear
sales at comparable locations declined $1,053,000 (50.4%) from the
prior year's level. Service revenues increased $562,000 (14.9%) due
primarily to $914,000 in sales associated with leased locations
acquired during the fourth quarter of fiscal 1995 and an increase of
$13,000 (0.4%) in sales at comparable locations, partially offset by a
decrease of $365,000 in sales associated with three Company-owned
locations closed during the first quarter of the current fiscal year.
Total revenues for the first six months increased $812,000 (2.8%) as
compared to the same period last year. Fur merchandise sales
increased $464,000 (6.0%) due primarily to $2,238,000 in sales
associated with leased locations acquired during the fourth quarter of
the prior fiscal year and an increase of $73,000 in sales associated
with store closing events at Company-owned locations closed during the
first quarter of the current fiscal year. These increases were
partially offset by a decrease of $1,847,000 (25.1%) in sales at
comparable locations. Women's ready-to-wear sales decreased $454,000
(3.6%) due primarily to a decrease of $410,000 in sales associated
with the closing of the Company's Southlake location in Merrilville,
Indiana, during the first quarter and a decrease of $44,000 (0.4%) in
sales at comparable locations. The decrease at comparable locations
was largely due to a $294,000 (19.4%) decrease in sales of apparel
outerwear partially offset by a $250,000 (2.4%) increase in sales of
non-outerwear apparel. Service revenues increased $802,000 (9.4%) due
primarily to $2,151,000 in sales associated with leased locations
acquired during the fourth quarter of fiscal 1995, partially offset by
a decrease of $844,000 in sales associated with three Company-owned
locations closed during the first quarter of the current fiscal year
and a decrease of $505,000 (6.7%) in sales at comparable locations.
Costs of goods and services sold, buying and occupancy costs as a
percentage of total revenues for the second quarter and first six
months increased (72.8% versus 72.5% and 70.8% versus 69.6%,
respectively) as compared to the prior year periods. Costs of goods
and services sold as a percentage of total revenues for the second
quarter decreased (52.2% versus 53.0%) due primarily to improved
margins on service revenues resulting from cost reductions. Costs of
goods and services sold as a percentage of total revenues for the
first six months increased (53.5% versus 52.7%) primarily due to lower
gross margins on fur merchandise sales resulting from higher markdowns
and lower initial markup during the first quarter. Buying costs as a
percentage of total revenues for the second quarter and first six
months decreased (3.3% versus 4.3% and 2.9% versus 3.8%, respectively)
due primarily to
- 8 -
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations
Results of Operations, continued
the closing of the Company's fur inspection office in New York during
the first quarter. Occupancy costs as a percentage of total revenues
for the second quarter and first six months increased (17.3% versus
15.2% and 14.3% versus 13.1%, respectively) largely due to higher
average rental percentages as compared to the same periods last year.
Selling and general expenses as a percentage of total revenues for the
second quarter and first six months decreased (43.8% versus 46.7% and
40.6% versus 43.1%, respectively) as compared to the same periods last
year. Payroll and related fringe benefits as a percentage of total
revenues for the second quarter and first six months decreased (32.0%
versus 32.5% and 28.1% versus 28.9%, respectively) due primarily to
the reduction of staff in various corporate departments as well as
management wage reductions which were part of the Company's planned
restructuring. Advertising expense as a percentage of total revenues
for the second quarter and first six months decreased (2.8% versus
5.3% and 5.1% versus 6.3%, respectively) due largely to management's
efforts to control costs through efficient and selective marketing
strategies.
Interest expense for the second quarter and first six months increased
$104,000 (47.3%) and $167,000 (38.2%) respectively, due primarily to
higher average short-term borrowings and higher average interest rates
as compared with prior year levels.
Other income for the second quarter and first six months decreased
$9,000 and $39,000 respectively, due primarily to a decline in
interest income associated with temporary cash investments.
The pre-tax loss for the second quarter of $2,473,000 as compared to
$2,685,000 for the same period last year was due largely to the
decrease in selling and general expenses partially offset by the
increase in interest expense. The pre-tax loss for the first six
months of $4,220,000 as compared to $4,309,000 for the prior year
period was due primarily to the increase in total revenues and the
decrease in selling and general expenses, partially offset by the
increase in cost of goods sold and occupancy costs, and the increase
in interest expense.
The income tax credits for the second quarter and first six
months of $1,038,000 and $1,772,000, respectively, were offset by
increases in the Company's valuation allowance with respect to the
future tax benefits of the net operating loss as a result of the
uncertainty of their ultimate realization. Included in the net losses
for the second quarter and first six months of the prior fiscal year
of $1,557,000 and $2,499,000 respectively were the result of income
tax credits of $1,128,000 and $1,810,000.
- 9 -
<PAGE>
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
Part I. Exhibit 4.3
Amendment No. 1 to Loan and Security Agreement
between Registrant and Transamerica Business Credit Corporation.
Exhibit 11.0
Computation of earnings per share.
(b) Reports on Form 8-K -- There were no reports on Form
8-K filed during the thirteen weeks ended August 26, 1995.
Items other than those listed are omitted because they are
not required.
- 10 -
<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
of the undersigned thereunto duly authorized.
EVANS, INC.
DATE: October 6, 1995 PATRICK J. REGAN
PATRICK J. REGAN
President and
Chief Executive Officer
DATE: October 6, 1995 WILLIAM E. KOZIEL
WILLIAM E. KOZIEL
Chief Financial Officer
- 11 -
<PAGE>
EVANS, INC. AND SUBSIDIARIES
Exhibit Page No.
4.3 13 - 14
11.0 15
- 12 -
<PAGE>
AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT
AMENDMENT NO. 1, dated as of October 3, 1995, between
TRANSAMERICA BUSINESS CREDIT CORPORATION ("Lender"), and EVANS, INC.
("Borrower"), and Borrower's wholly-owned Subsidiaries, KOSLOW'S, INC.
("Koslow") and EVANS - ROSENDORF OF MARYLAND, INC. ("Rosendorf")
(Koslow and Rosendorf individually, a "Borrowing Subsidiary", and
collectively, "Borrowing Subsidiaries").
Lender and Borrower and Borrowing Subsidiaries are parties to a
Loan and Security Agreement, dated as of May 31, 1995 (the "Loan and
Security Agreement"). Lender, Borrower and Borrowing Subsidiaries
desire to amend the Loan and Security Agreement in certain respects
and, accordingly, the parties hereto agree as follows:
1. Definitions. Except as otherwise provided herein, the terms
defined in the Loan and Security Agreement are used herein as defined
therein.
2. Amendments. Effective as of August 16, 1995, the Loan and
Security Agreement is amended as follows:
A. Section 7.3(E) is amended and restated as follows:
"(E) At the end of the second Fiscal Quarter of the
1996 Fiscal Year, Average Inventory Days of not more than 300, and at
the end of each subsequent Fiscal Quarter, Average Inventory Days of
not more than the number set opposite such Fiscal Quarter in the
following schedule:
Average
Fiscal Quarter Inventory Days
First 240
Second 280
Third 160
Fourth 105
B. Section 7.3(G) is amended and restated as follows:
"(G) (i) at the end of each Fiscal Quarter subsequent
to the date hereof, Average Accounts Receivable Days of not more than
210 with respect to Owned Store Sales Accounts, and not more than 45
with respect to Licensed Department Sales Accounts, (ii) at the end of
each of the third Fiscal Quarters subsequent to the date hereof,
Average Accounts Receivable Days of not more than 115 with respect to
Owned Store Service Accounts and not more than 220 with respect to
Licensed Department Service Accounts, and (iii) at the end of each of
the first, second and fourth Fiscal Quarters subsequent to the date
hereof, Average Accounts Receivable Days of not more than 75 with
respect to Owned Store Service Accounts, and not more than 85 with
respect to Licensed Department Service Accounts.
- 13 -
<PAGE>
3. Representation and Warranty. Borrower and each Borrowing
Subsidiary represents and warrants to Lender that the execution and
delivery by Borrower and each Borrowing Subsidiary of this Amendment
No. 1 are within Borrower's and each Borrowing Subsidiary's corporate
power, have been duly authorized by all necessary or proper corporate
action, are not in contravention of any provision of Borrower's or
either Borrowing Subsidiary's Articles or Certificate of Incorporation
or By-Laws, will not violate any law or regulation, or any order or
decree of any court or governmental instrumentality, will not conflict
with or result in the breach or termination of, constitute a default
under, or accelerate any performance required by, any indenture,
mortgage, deed of trust, lease, agreement or other instrument to which
Borrower or either Borrowing Subsidiary is a party or by which
Borrower or either Borrowing Subsidiary or any of its property is
bound and do not require the consent or approval of any governmental
body, agency, authority or any other person.
4. Miscellaneous. Except as herein provided, the Loan and
Security Agreement shall remain unchanged and in full force and
effect. This Amendment No. 1 may be executed in any number of
separate counterparts, each of which shall, collectively and
separately, constitute one agreement. This Amendment No. 1 and the
obligations arising hereunder shall be governed by, and construed and
enforced in accordance with, the laws of the State of Illinois
applicable to contracts made and performed in such state, without
regard to the principles thereof regarding conflict of laws, and any
applicable laws of the United States of America.
IN WITNESS WHEREOF, this Amendment No. 1 has been duly executed
as of the day and year specified at the beginning hereof.
TRANSAMERICA BUSINESS CREDIT EVANS, INC.
CORPORATION
By: Matthew N. McAlpine By: Patrick J. Regan
Name: Matthew N. McAlpine Name: Patrick J. Regan
Title: Senior Account Executive Title: Chief Executive Officer
KOSLOW'S, INC.
By: Patrick J. Regan
Name: Patrick J. Regan
Title: Chief Executive Officer
EVANS-ROSENDORF OF
MARYLAND, INC.
By: Patrick J. Regan
Name: Patrick J. Regan
Title: Chief Executive Officer
- 14 -
<PAGE>
<TABLE>
EXHIBIT 11
EVANS, INC. AND SUBSIDIARIES
COMPUTATION OF EARNINGS PER SHARE
<CAPTION>
Thirteen weeks ended Twenty-six weeks ended
-------------------------- --------------------------
August 26, August 27, August 26, August 27,
1995 1994 1995 1994
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Primary:
- ------------------------
Weighted average
shares outstanding 4,918,301 4,918,301 4,918,301 4,918,301
Incremental shares
for exercise of
stock options -- 116,734 -- 122,325
------------ ------------ ------------ ------------
Adjusted number
of common shares
outstanding 4,918,301 5,035,035 4,918,301 5,040,626
============ ============ ============ ============
Net loss $(2,473,000) $(1,557,000) $(4,220,000) $(2,499,000)
============ ============ ============ ============
Net loss per share $(.50) $(.31) $(.86) $(.50)
============ ============ ============ ============
Fully diluted:
- ------------------------
Weighted average
shares outstanding 4,918,301 4,918,301 4,918,301 4,918,301
Incremental shares
for exercise of
stock options -- 116,734 -- 122,325
------------ ------------ ------------ ------------
Adjusted number
of common shares
outstanding 4,918,301 5,035,035 4,918,301 5,040,626
============ ============ ============ ============
Net loss $(2,473,000) $(1,557,000) $(4,220,000) $(2,499,000)
============ ============ ============ ============
Net loss per share $(.50) $(.31) $(.86) $(.50)
============ ============ ============ ============
- 15 -
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Mar-02-1996
<PERIOD-START> Feb-26-1995
<PERIOD-END> Aug-26-1995
<CASH> 160,000
<SECURITIES> 0
<RECEIVABLES> 13,547,000
<ALLOWANCES> 0
<INVENTORY> 16,946,000
<CURRENT-ASSETS> 31,418,000
<PP&E> 22,893,000
<DEPRECIATION> 12,416,000
<TOTAL-ASSETS> 44,765,000
<CURRENT-LIABILITIES> 17,818,000
<BONDS> 0
<COMMON> 1,267,000
0
0
<OTHER-SE> 16,057,000
<TOTAL-LIABILITY-AND-EQUITY> 44,765,000
<SALES> 20,299,000
<TOTAL-REVENUES> 29,608,000
<CGS> 15,845,000
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</TABLE>
