SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended October 28, 1995
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
Commission file number 1-6083
GREENMAN BROS. INC.
(Exact name of Registrant as specified in its charter)
NEW YORK 11-1771705
(State or Other Jurisdiction of (I.R.S. Employer Identification No.)
Incorporation or Organization)
105 PRICE PARKWAY, FARMINGDALE, NEW YORK 11735
(Address of Principal Executive Office) (Zip Code)
Registrant's Telephone Number, Including Area Code (516) 293-5300
NOT APPLICABLE
(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 for such shorter periods that the
registrant was required to file such reports), and (2) has been subject to
such filing requirement 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 5,369,390 Shares Outstanding
as of December 6, 1995.
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TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION Page
Condensed Consolidated Balance Sheets
October 28, 1995, October 29, 1994 and January 28, 1995 . . . 3
Condensed Consolidated Statements of Income (Loss)
Thirteen and Thirty-Nine Weeks Ended October 28, 1995
and October 29, 1994 . . . . . . . . . . . . . . . . . . . . . 4
Condensed Consolidated Statements of Cash Flows
Thirty-Nine Weeks Ended October 28, 1995 and October 29, 1994 5
Notes to Condensed Consolidated Unaudited
Financial Statements. . . . . . . . . . . . . . . . . . . . . 6
Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . . . . . . . 7 - 12
PART II - OTHER INFORMATION . . . . . . . . . . . . . . . . . . . . 13
SIGNATURES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
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GREENMAN BROS. INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
UNAUDITED
October 28, October 29, January 28,
1995 1994 1995
(In thousands)
<CAPTION>
<S> <C> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 6,548 $ 5,620 $ 10,908
Merchandise inventories 12,437 9,636 4,330
Prepaid expenses, taxes and other 1,888 3,105 2,980
Net assets of discontinued operations 6,327 26,298 24,621
Total current assets 27,200 44,659 42,839
Property, plant and equipment - net 11,622 5,205 5,163
Other assets 50 42 40
Total assets $ 38,872 $ 49,906 $ 48,042
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<TABLE>
LIABILITIES AND STOCKHOLDERS' EQUITY
<CAPTION>
<S> <C> <C> <C>
Current liabilities:
Trade accounts payable $ 7,191 $ 4,013 $ 2,262
Accrued expenses and taxes 5,237 5,547 4,777
Income taxes payable - - 133
Total current liabilities 12,428 9,560 7,172
Stockholders' equity:
Preferred stock - authorized - 500
shares, par value $1.00 (none issued) - - -
Common stock - authorized - 10,000
shares, par value $.10 - issued 6,292
6,185 and 6,185 shares, respectively 629 619 619
Capital in excess of par value 26,294 25,680 25,801
Retained earnings 3,313 17,839 18,242
Less treasury stock, at cost - 924 shares (3,792) (3,792) (3,792)
Total stockholders' equity 26,444 40,346 40,870
Total liabilities and stockholders'
equity $ 38,872 $ 49,906 $ 48,042
See accompanying notes to Condensed Consolidated Financial Statements.
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GREENMAN BROS. INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (LOSS)
(In thousands, except per share amounts)
UNAUDITED
Thirteen Weeks Ended Thirty-Nine Weeks Ended
October 28, October 29, October 28, October 29,
1995 1994 1995 1994
<CAPTION>
<S> <C> <C> <C> <C>
Net sales $ 6,288 $ 4,199 $ 13,508 $ 12,042
Costs and expenses:
Cost of products sold including buying
and warehousing costs 4,122 2,832 8,784 8,214
Selling and administrative expenses 4,855 2,392 10,563 6,937
Provision for restructured
operations 500 - 500 3,500
9,477 5,224 19,847 18,651
Operating loss (3,189) (1,025) (6,339) (6,609)
Interest income 229 86 501 299
Interest expense (10) (18) (32) (56)
Loss from continuing operations
before income taxes (2,970) (957) (5,870) (6,366)
Income taxes (benefit) - (383) - (2,547)
Net loss from continuing operations (2,970) (574) (5,870) (3,819)
Discontinued operations:
Income (loss) net of income
tax expense of $-0-, $234, - 350 (1,914) 22
$-0- and $15, respectively
Operating loss of $7,305 including
gain from disposal of assets and
income taxes of $1,602 - - (7,145) -
Net income (loss) from discontinued
operations - 350 (9,059) 22
Net loss $ (2,970) $ (224) $ (14,929) $ (3,797)
Net income (loss) per share:
Continuing operations $ (.55) $ (.11) $ (1.11) $ (.73)
Discontinued operations - .07 (1.71) -
Net loss per share $ (.55) $ (.04) $ (2.82) $ (.73)
Average shares outstanding 5,356 5,218 5,302 5,207
See accompanying notes to Condensed Consolidated Financial Statements.
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<TABLE>
GREENMAN BROS. INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
UNAUDITED
Thirty-Nine Weeks Ended
October 28, October 29,
1995 1994
(In thousands)
<CAPTION>
<S> <C> <C>
Cash flows from operating activities:
Net loss from continuing operations $ (5,870) $ (3,819)
Adjustments to reconcile to net cash provided (used):
Depreciation 648 437
Restructuring charge-non-cash-portion 500 3,500
Decrease (increase) in non-cash working capital
accounts:
Merchandise inventories (8,107) (3,317)
Prepaid expenses, taxes and other current assets 1,092 (2,030)
Trade accounts payable, accrued expenses and taxes 4,756 495
Net cash used in continuing operations (6,981) (4,734)
Net income (loss) from discontinued operations (9,059) 22
Adjustments to reconcile to net cash provided:
Depreciation 286 359
Provision for doubtful accounts 581 296
Deferred income taxes 1,602 -
Decrease (increase) in non-cash working capital accounts
and other assets and liabilities 15,960 5,123
Net cash provided by discontinued operations 9,370 5,800
Net cash provided by operating activities 2,389 1,066
Cash flows from investing activities:
Proceeds from sale of marketable securities - 1,000
Property additions - continuing operations (7,118) (1,893)
Property additions - discontinued operations (86) (934)
Other - 583
Net cash used in investing activities (7,204) (1,244)
Cash flows from financing activities:
Reduction in obligation under capital lease (48) (45)
Proceeds from exercise of employees stock options 503 79
Net cash provided by financing activities 455 34
Net decrease in cash and cash equivalents (4,360) (144)
Cash and cash equivalents - beginning of year 10,908 5,764
Cash and cash equivalents - end of period $ 6,548 $ 5,620
See accompanying notes to Condensed Consolidated Financial Statements.
</TABLE>
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GREENMAN BROS. INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
UNAUDITED
NOTE 1. The accompanying unaudited condensed consolidated financial
statements have been prepared in accordance with the instruction
to 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 for a fair statement of the results and financial
position for the interim periods presented have been included. All
such adjustments are of a normal recurring nature except for those
associated with the discontinued operations. This financial
information should be read in conjunction with the financial
statements and notes thereto included in the registrant's annual
report on Form 10-K for the year ended January 28, 1995. The
January 28, 1995 Balance Sheet was restated in this 10Q to reflect
the discontinued operation.
Due to the seasonal nature of the Company's business, results for
the interim period are not necessarily indicative of the results
to be expected for the fiscal year.
NOTE 2. All highly liquid investments with a maturity of three months or
less are considered to be cash equivalents; investments with
maturities between three and twelve months are considered to be
short-term investments. These investments are stated at cost which
approximates market.
NOTE 3. Income tax provisions are based on estimated annual effective tax
rates. The loss from continuing operations for the periods ended
October 28, 1995 provides no current tax benefit. The effective
income tax rate used for the thirty-nine week period ended October
29, 1994 was approximately 40%. Income tax expense provided in
discontinued operations for the thirty-nine week period ended
October 28, 1995 represents the Company's requirement for a 100%
valuation allowance for the net deferred tax assets pursuant to
SFAS 109.
NOTE 4. On August 30, 1995 the Company adopted a formal plan to discontinue
its wholesale business segment. The plan provides for the sale of
two of the Company's distribution centers and the disposition
through sale or liquidation of substantially all of the operating
assets.
The operations and net assets of the wholesale business segment are
being accounted for as a discontinued operation, and accordingly,
its operating results and net assets are reported in this manner
in all periods presented in the accompanying consolidated financial
statements. Revenues from such operations were $8.7 million and
$31.2 million for the thirteen weeks ended October 28, 1995 and
October 29, 1994, respectively and $50.6 million and $80.7 million
for the corresponding thirty-nine week periods, respectively.
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MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Thirteen Weeks Ended October 28, 1995 Compared with
Thirteen Weeks Ended October 29, 1994
Continuing Operations
Net sales increased 49.7% to $6.3 million for the thirteen week period ended
October 28, 1995 from $4.2 million in the comparable period in the prior
year. Noodle Kidoodle sales increased $4.1 million to $5.5 million in the
period ended October 28, 1995 from $1.4 million in the comparable period in
the prior year, primarily due to the operation of fifteen Noodle Kidoodle
stores during the period ended October 28, 1995 compared to three stores in
the comparable period in the prior year. Other retail sales, which include
the Playworld and Toy Park stores, decreased $2.0 million to $.8 million in
the period ended October 28, 1995 from $2.8 million in the comparable period
in the prior year, primarily due to the operation of four stores in the
period ended October 28, 1995 compared to ten stores in the comparable period
in the prior year.
Gross profits, which is derived from net sales, less the cost of merchandise
sold, which includes buying and warehousing costs, increased $.8 million to
$2.2 million in the period ended October 28, 1995 from $1.4 million in the
comparable period in the prior year. Gross margin increased to 34.4% in the
period ended October 28, 1995 from 32.6% in the comparable period in the
prior year. The increase results primarily from higher gross margin in the
other retail stores. Gross margin at Noodle Kidoodle decreased to 32.8% in
the period ended October 28, 1995 from 34.8% in the comparable period in the
prior year, primarily due to higher warehousing costs resulting from
operating its own warehouse in the current period where it shared a warehouse
with the discontinued wholesale business in the comparable period in the
prior year. Gross margins in other retail stores increased to 45.8% in the
period ended October 28, 1995 from 31.4% in the comparable period in the
prior year primarily due to a lower level of inventory shortage and to a
greater mix of higher margin merchandise sold.
Selling and administrative expenses excluding restructuring costs increased
$2.5 million to $4.9 million in the period ended October 28, 1995 from $2.4
million in the comparable period in the prior year, primarily attributable
to changes in the store base. Selling and administrative expenses at Noodle
Kidoodle increased $3.0 million to $3.9 million in the period ended October
28, 1995 from $.9 million in the comparable period of the prior year,
primarily due to higher direct store expenses which increased $1.8 million
and advertising expenses which increased $.7 million with the balance
attributable to higher home office expenses. Selling and administrative
expenses in the other retail stores decreased $.6 million to $.3 million as
a result of the closing of six stores at the end of the prior fiscal year.
Selling and administrative expenses as a percentage of net sales increased
to 77.2% in the period ended October 28, 1995 from 57.0% in the comparable
period in the prior year. Selling and administrative expenses as a percentage
of net sales at Noodle Kidoodle increased to 70.6% in the period ended
October 28, 1995 from 63.5% in the comparable period in the prior year. The
increase was primarily due to higher advertising costs which were 15.6% in
the period ended October 28, 1995 and 8.0% in the comparable period of the
prior year resulting from increases in grand opening advertising associated
with seven new stores in the period ended October 28, 1995 compared to two
new stores in the comparable period of the prior year.
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Restructuring costs were $.5 million in the period ended October 28, 1995.
These expenses were primarily due to an increase of one store to the
provision, which was initially established in the second quarter of fiscal
1995, to recognize costs for severance, lease liabilities, writeoffs of fixed
assets and inventory liquidation costs associated with the decision to close
the Playworld stores.
Operating loss increased $2.2 million to $3.2 million in the period ended
October 28, 1995 from $1.0 million in the comparable period in the prior
year. Excluding restructuring costs, the operating loss would have been $2.7
million for the period ended October 28, 1995 compared to $1.0 million in the
comparable period in the prior year.
Interest income net of interest expense increased to $219,000 for the period
ended October 28, 1995 from $68,000 in the comparable period in the prior
year, primarily due to higher average cash and cash equivalent balances as
well as higher investment rates.
Net loss from continuing operations increased $2.4 million to $3.0 million
($.55 per share) in the period ended October 28, 1995 from $.6 million ($.11
per share) in the comparable period in the prior year. The net loss for the
period ended October 28, 1995 included no tax benefit while the comparable
period in the prior year included a tax benefit of $.4 million ($.07 per
share).
Discontinued Operations
Net sales decreased $22.5 million to $8.7 million in the period ended October
28, 1995 from $31.2 million in the comparable period in the prior year,
primarily due to the decision on August 30, 1995 to dispose of the wholesale
operation.
Net income from discontinued operations was $.3 million ($.07 per share) in
the period ended October 29, 1994.
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<PAGE>
Thirty-Nine Weeks Ended October 28, 1995
Compared with Thirty-Nine Weeks Ended October 29, 1994
Continuing operations
Net sales increased 12.2% to $13.5 million for the thirty-nine week period
ended October 28, 1995 from $12.0 million in the comparable period in the
prior year. Noodle Kidoodle sales increased $8.5 million to $11.0 million
for the thirty-nine week period ended October 28, 1995 from $2.5 million in
the comparable period in the prior year, primarily due to the operation of
fifteen Noodle Kidoodle stores during the period ended October 28, 1995
compared to three stores in the comparable period in the prior year. Other
retail sales decreased 74.0% to $2.5 million for the thirty-nine week period
ended October 28, 1995 from $9.5 million in the comparable period in the
prior year primarily due to the operation of two Playworld and two Toy Park
stores in the period ended October 28, 1995 compared to a total of ten stores
in the comparable period in the prior year.
Gross profit, which is derived from net sales, less the cost of merchandise
sold, which includes buying and warehousing costs, increased 23.4% to $4.7
million for the period ended October 28, 1995 from $3.8 million in the
comparable period in the prior year. Overall gross margins increased to
35.0% in the period ended October 28, 1995 from 31.8% in the comparable
period in the prior year. The increase results from an increase in sales at
Noodle Kidoodle, which carries products with higher margin than those carried
by Playworld stores. Gross margins at Noodle Kidoodle increased to 34.0% in
the current period from 33.6% in the comparable period in the prior year,
primarily as a result of decreased buying and warehousing costs, partially
offset by increased cost of merchandise. Gross margins for the other retail
stores increased to 39.2% in the current period from 31.3% in the comparable
period in the prior year primarily due to a greater mix of higher margin
merchandise sold.
Selling and administrative expenses excluding restructuring costs increased
52.3% to $10.6 million in the period ended October 28, 1995 from $6.9 million
in the comparable period in the prior year, primarily as a result of changes
in the store base. Selling and administrative expenses at Noodle Kidoodle
increased to $7.6 million in the current period from $1.7 million in the
comparable period in the prior year primarily as a result of higher direct
store expenses, which increased by $3.7 million, higher advertising expenses,
which increased by $1.1 million, and higher home office expenses. This
increase was offset by a decrease in selling and administrative expenses for
the other retail stores to $1.2 million in the current period from $3.5
million in the comparable period in the prior year, principally attributable
to a decrease in direct store expenses as a result of closing of the six
Playworld stores at the end of the prior fiscal year. Selling and
administrative expenses as a percentage of net sales increased to 78.2% for
the period ended October 28, 1995 from 57.6% for the period ended October 29,
1994, primarily attributable to greater mix of the Noodle Kidoodle stores
which have higher operating costs. Noodle Kidoodle selling and
administrative expenses as a percentage of net sales increased to 69.1% in
the period ended October 28, 1995 from 66.8% in the comparable period in the
prior year, primarily due to increases in direct store and advertising
expenses, partially offset by lower home office expenses. Other retail
selling and administrative expenses as a percentage of net sales increased
to 47.9% in the period ended October 28, 1995 from 37.1% in the comparable
period of the prior year primarily due to lower levels of net sales.
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Restructuring costs related to the closing of the other retail stores were
$.5 million in the period ended October 28, 1995 compared to $3.5 million in
the comparable period in the prior year.
Operating loss decreased to $6.3 million for the period ended October 28,
1995 from $6.6 million in the comparable period in the prior year. Excluding
restructuring charges, the operating loss would have been $5.8 million for
the period ended October 28, 1995 compared to $3.1 million in the comparable
period in the prior year.
Interest income net of interest expense increased 93.0% to $0.5 million in
the period ended October 28, 1995 from $0.2 million in the comparable period
in the prior year. Average cash and cash equivalent balances were $11.0
million and $6.9 million for the periods ended October 28, 1995 and October
29, 1994, respectively. Investment rates were also higher in the current
period.
Net loss from continuing operations was $5.9 million ($1.11 per share) in the
period ended October 28, 1995 compared to $3.8 million ($.73 per share) in
the comparable period in the prior year. The net loss for the period ended
October 28, 1995 included no tax benefit while the comparable period of the
prior year included a tax benefit of $2.5 million ($.49 per share). At
October 28, 1995, the Company had accumulated $13.5 million of net operating
loss carryforwards.
Discontinued operations
Net sales decreased 37.3% to $50.6 million in the period ended October 28,
1995 from $80.7 in the comparable period in the prior year. This decrease
resulted primarily from discontinuance of the wholesale business, effective
August 30, 1995.
Provision for discontinued operations represents a loss of $7.1 million
related to the disposal of the wholesale business, including the estimated
losses through the disposal period, the anticipated sale of two of the
Company's distribution centers and income tax expense of $1.6 million.
Net income (loss) from discontinued operations was ($9.1) million ($1.71 per
share) in the period ended October 28, 1995, including the $7.1 million
($1.35 per share) net charge for discontinued operations, as compared to net
income of $22,000 in the comparable period of the prior year.
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<PAGE>
Liquidity and Capital Resources
During the thirty-nine week period ended October 28, 1995 the Company's cash
and cash equivalent balances decreased $4.4 million to $6.5 million from
$10.9 million at the beginning of the period. Cash and cash equivalents of
$7.0 million were used for operating activities of the continuing operations
including an operating loss before non-cash expenses of $4.7 million and
increases in non-cash working capital accounts of $2.3 million, primarily due
to the increase in inventory required for new stores. Cash and cash
equivalents of $9.4 million were provided by operating activities of the
discontinued operations including an operating loss before non-cash expenses
of $8.2 million and decreases in non-cash working capital accounts of $17.6
million, primarily due to lower inventory and accounts receivable relating
to the dissolution of the wholesale operation. Cash and cash equivalents used
in investing activities were $7.2 million, primarily for property additions
in the continuing operations. Financing activities provided cash and cash
equivalents of $.5 million, primarily due to the exercise of employee
options.
During the thirty-nine week period ended October 29, 1994 the company's cash
and cash equivalent balances decreased $.2 million to $5.6 million from $5.8
million at the beginning of the period. Cash and cash equivalent balances of
$4.7 million were used for operating activities of the continuing operations
including operating income before non-cash expenses of $.1 million offset by
increases in non-cash working capital accounts of $4.8 million, primarily due
to higher inventory levels including requirements for new stores. Cash and
cash equivalents of $5.8 million were provided by operating activities of
discontinued operations including operating income before non-cash expenses
of $.7 million and decreases in non-cash working capital accounts of $5.1
million, primarily due to decreases in inventory and accounts receivable.
Cash and cash equivalents used in investing activities were $1.2 million,
primarily for property additions in the continuing operations of $1.9 million
and for discontinued operations of $.9 million, partially offset by proceeds
from sale of securities of $1.0 million.
The Company has in place a bank line of credit secured by certain assets of
its discontinued wholesale business segment with a maximum borrowing
availability of $12.5 million which expires on June 30, 1996. Based on an
asset based formula set by the bank, availability at October 28, 1995 was
$5.0 million. As a result of the discontinuation of the wholesale business
segment, this future availability will decrease. The Company intends in the
near future to arrange for a new bank facility for its continuing retail
operations.
As the Company expands its Noodle Kidoodle operations, it will continue to
require cash. The Company has to date handled the expansion of its Noodle
Kidoodle operation from cash flows from discontinued operations and internal
cash balances. As the expansion continues, the Company will require
externally generated funds which may include sale of equity, equity related
or debt securities as well as future bank facilities.
The Company estimates that capital expenditures during fiscal 1996 will be
approximately $8.5 million, of which $7.1 million has already been spent for
the thirty-nine week period ended October 28, 1995, and will be used
primarily to open new stores. The Company anticipates that capital
expenditures in fiscal 1997 will be approximately $11.0 million, primarily
to finance approximately twenty new store openings, at an average cost of
approximately $.5 million per store and $1.0 million to upgrade its MIS
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<PAGE>
software capabilities. In addition to capital expenditure requirements, new
stores require a working capital investment of approximately $.4 million per
store, primarily for inventory, a large portion of which is financed by
vendor trade credit. The Company has available net operating loss
carryforwards of approximately $13.5 million for income tax purposes.
Quarterly fluctuations in results and seasonality
The timing of new store openings and related pre-opening expenses and the
amount of revenue contributed by new and existing stores have caused, and are
expected to cause in the future, the Company's quarterly results of
operations to fluctuate. In addition, the Company's operations are highly
seasonal, a significant portion of a typical store's revenues is generated
during the Company's fourth fiscal quarter, which coincides with the
Christmas selling season. The Company does not expect to generate positive
operating income during the first three fiscal quarters for the foreseeable
future.
Impact of inflation
The impact of inflation on the Company's results of operations has not been
significant. The Company attempts to pass on increased costs by increasing
product prices over time.
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<PAGE>
Part II - Other Information
Item 4. Submission of Matters to a Vote of Security Holders
At a special meeting held on December 11, 1995, stockholders
approved the change of the Company's corporate name to Noodle
Kidoodle, Inc. In addition, stockholders approved an increase in
the authorized number of shares of common stock to 15 million
shares from 10 million shares and an amendment to the Outside
Directors Stock Option Plan. The meeting was adjourned until
January 4, 1996 at 11:00 A.M. at the Company's corporate offices
at 105 Price Parkway, Farmingdale, New York, to further consider
a proposed re-incorporation in Delaware and authorization of
additional preferred stock.
In conjunction with the name change, the Company also announced
that, effective December 14, 1995, trading of its common stock will
commence on the Nasdaq National Market under the symbol "NKID" and
cease trading on the American Stock Exchange under the symbol
"GMN".
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<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 the
undersigned thereunto duly authorized.
GREENMAN BROS. INC.
(Registrant)
Date: December 12, 1995 STANLEY GREENMAN
Stanley Greenman, Chairman of
the Board, Chief Executive
Officer, Director
(Principal Executive Officer)
Date: December 12, 1995 WILLIAM A. JOHNSON, JR.
William A. Johnson Jr., Vice
President, Chief Financial
Officer and Secretary
(Principal Financial Accounting
Officer)
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<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> FEB-03-1996
<PERIOD-START> JAN-29-1995
<PERIOD-END> OCT-28-1995
<CASH> 6,548
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 12,437
<CURRENT-ASSETS> 27,200
<PP&E> 14,843
<DEPRECIATION> 3,221
<TOTAL-ASSETS> 38,872
<CURRENT-LIABILITIES> 12,428
<BONDS> 0
<COMMON> 629
0
0
<OTHER-SE> 29,607
<TOTAL-LIABILITY-AND-EQUITY> 38,872
<SALES> 13,508
<TOTAL-REVENUES> 13,508
<CGS> 8,784
<TOTAL-COSTS> 8,784
<OTHER-EXPENSES> 11,063
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 32
<INCOME-PRETAX> (5,870)
<INCOME-TAX> 0
<INCOME-CONTINUING> (5,870)
<DISCONTINUED> (9,059)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (14,929)
<EPS-PRIMARY> (2.82)
<EPS-DILUTED> (2.82)
</TABLE>
