<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarter ended April 27, 1996
Commission file number: 0-15230
MICHAEL ANTHONY JEWELERS, INC.
(Exact name of registrant as specified in its charter)
Delaware No. 13-2910285
(State of Incorporation) (I.R.S. Employer Identification No.)
115 South MacQuesten Parkway
Mount Vernon, New York 10550-1724
(Address of principal executive offices)
Registrant's telephone number, including area code:
(914) 699-0000
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 .
------ ------
CLASS
----- Number of Shares
Common Stock, Par Value $.001 Outstanding as of
June 3, 1996
------------
8,253,909
<PAGE> 2
MICHAEL ANTHONY JEWELERS, INC. AND SUBSIDIARIES
INDEX
-----
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
PART I - FINANCIAL INFORMATION:
ITEM 1. FINANCIAL STATEMENTS
Consolidated Condensed Balance Sheets,
April 27, 1996 (Unaudited) and
January 27, 1996................................................................................. 3
Consolidated Condensed Statements of Operations
Three-Month Period Ended
April 27, 1996 and April 29, 1995 (Unaudited) .................................................... 4
Consolidated Condensed Statement of Changes in
Stockholders' Equity, Three-Month Period Ended
April 27, 1996 (Unaudited)....................................................................... 5
Consolidated Condensed Statements of Cash Flows,
Three-Month Period Ended
April 27, 1996 and April 29, 1995 (Unaudited).................................................... 6
Notes to Consolidated Condensed Financial
Statements....................................................................................... 7-9
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.................................................................................... 10-13
PART II - OTHER INFORMATION:
Items 1 Through Item 6 ............................................................................. 14
Signature Page.............................................................................................. 15
</TABLE>
-ii-
<PAGE> 3
MICHAEL ANTHONY JEWELERS, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS
(IN THOUSANDS, EXCEPT SHARE DATA)
<TABLE>
<CAPTION>
(Unaudited)
ASSETS April 27, January 27,
1996 1996
------------ -------
<S> <C> <C>
CURRENT ASSETS:
Cash and equivalents $12,715 $ 6,673
Accounts receivable:
Trade (less allowances of $1,281 and $1,575, respectively) 20,258 30,062
Other 79 47
Inventories 18,802 19,698
Prepaid expenses and other current assets 1,742 1,169
Deferred taxes 855 855
--------- ---------
Total current assets 54,451 58,504
PROPERTY, PLANT AND EQUIPMENT - net 18,325 18,441
INTANGIBLES - net 1,046 998
OTHER ASSETS 954 703
--------- ---------
$74,776 $78,646
========= =========
LIABILITIES AND STOCKHOLDERS' EQUITY
- ------------------------------------
CURRENT LIABILITIES:
Accounts payable - trade $2,990 $4,575
Current portion of long-term debt
and lease liability 3,278 3,272
Accrued expenses 3,438 3,980
Taxes payable 545 541
--------- ---------
Total current liabilities 10,251 12,368
--------- ---------
LONG-TERM DEBT 16,776 18,401
--------- ---------
CAPITAL LEASE LIABILITY 672 791
--------- ---------
DEFERRED TAXES 1,038 1,038
--------- ---------
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock - par value $1.00 per share;
1,000,000 shares authorized; none issued - -
Common stock - par value $.001 per share;
20,000,000 shares authorized; 9,239,000
shares issued and outstanding as of April 27,
1996, and January 27, 1996, respectively 9 9
Additional paid-in capital 35,170 35,170
Retained earnings 14,314 14,306
Treasury stock, 965,200 shares as of April 27,
1996 and January 27, 1996, respectively (3,454) (3,437)
--------- ---------
Total stockholders' equity 46,039 46,048
--------- ---------
$74,776 $78,646
========= =========
</TABLE>
The accompanying notes are an integral part of these consolidated condensed
financial statements.
- 3 -
<PAGE> 4
MICHAEL ANTHONY JEWELERS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS
(UNAUDITED)
(IN THOUSANDS, EXCEPT EARNINGS PER SHARE)
<TABLE>
<CAPTION>
Three Months Ended
April 27, April 29,
1996 1995
-------- ---------
<S> <C> <C>
NET SALES $29,203 $27,260
COST OF GOODS SOLD 24,250 22,048
-------- ---------
GROSS PROFIT ON SALES 4,953 5,212
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 4,335 4,493
-------- ---------
OPERATING INCOME 618 719
OTHER INCOME (EXPENSES):
Gold consignment fee, net (351) (414)
Interest expense (429) (456)
Interest income 160 124
Other income 14 5
---------- ---------
Total Other Income (Expense) (606) (741)
---------- ---------
INCOME/(LOSS) BEFORE INCOME TAXES 12 (22)
INCOME TAX PROVISION/(BENEFIT) 4 (9)
---------- ----------
NET INCOME/(LOSS) $ 8 $ (13)
========== ==========
EARNINGS/(LOSS) PER SHARE $ .00 $ (.00)
========== ==========
WEIGHTED AVERAGE NUMBER OF SHARES 8,274 8,657
</TABLE>
The accompanying notes are an integral part of these consolidated condensed
financial statements.
- 4 -
<PAGE> 5
MICHAEL ANTHONY JEWELERS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Common Stock Additional Treasury Stock
------------------ Paid-In Retained ------------------
Shares Dollars Capital Earnings Shares Dollars Total
------ -------- ------- -------- ------ ------- -----
<S> <C> <C> <C> <C> <C> <C> <C>
Balance -
January 27, 1996 9,239 $ 9 $35,170 $14,306 (965) $(3,437) $46,048
Purchase of treasury stock (a) - - - - - (17) (17)
Net income - - - 8 - - 8
-------- ------- ---------- -------- ------ --------- -------
Balance -
April 27, 1996
9,239 $ 9 $35,170 $14,314 (965) $(3,454) $46,039
----- ------ ------- -------- ----- -------- -------
<FN>
(a) Adjustment for commissions paid on prior purchases of treasury stock.
</TABLE>
The accompanying notes are an integral part of these consolidated condensed
financial statements.
- 5 -
<PAGE> 6
MICHAEL ANTHONY JEWELERS, INC. AND SUBSIDIARIES
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
Three Months Ended
April 27, April 29,
1996 1995
----------- ----------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income/(loss) $ 8 $ (13)
Adjustments to reconcile net income/(loss)
to net cash provided by operating activities:
Depreciation and amortization 989 1,014
Provision for accounts receivable 30 90
Provision for sales returns (187) (280)
Other (17) -
(Increase)/decrease in operating assets:
Accounts receivable 9,929 3,358
Inventories 896 (1,698)
Prepaid expenses and other current assets (573) (28)
Other assets (301) (184)
Intangibles (100) (500)
Increase/(decrease) in operating liabilities:
Accounts payable (1,585) 522
Accrued expenses (542) 637
Taxes payable 4 (27)
-------- --------
Net cash provided by operating activities 8,551 2,891
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of property, plant and equipment - net (771) (1,866)
-------- --------
Net cash used in investing activities (771) (1,866)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Principal payments of long-term debt
and capital lease liabilities (1,738) (1,520)
Proceeds from long term debt - 6,000
Purchase of treasury stock - (246)
-------- --------
Net cash (used in)/provided by
financing activities (1,738) 4,234
-------- --------
NET INCREASE IN CASH AND EQUIVALENTS 6,042 5,259
CASH AND EQUIVALENTS AT BEGINNING OF PERIOD 6,673 5,815
-------- --------
CASH AND EQUIVALENTS AT END OF PERIOD $ 12,715 $ 11,074
======== ========
SUPPLEMENTAL DISCLOSURE OF
CASH FLOW INFORMATION:
Cash paid during the period for:
Interest and gold consignment fees $ 1,109 $ 765
Taxes $ 0 $ 0
</TABLE>
The accompanying notes are an integral part of these consolidated condensed
financial statements.
- 6 -
<PAGE> 7
MICHAEL ANTHONY JEWELERS, INC. AND SUBSIDIARIES
FORM 10-Q FOR QUARTER ENDED APRIL 27, 1996
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(INFORMATION SUBSEQUENT TO JANUARY 27, 1996 IS UNAUDITED)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
------------------------------------------
The unaudited interim consolidated condensed balance sheet as of April 27,
1996 and the consolidated condensed statements of operations for the three
months ended April 27, 1996 and April 29, 1995, and the consolidated
condensed statements of cash flows for the three months ended April 27,
1996 and April 29, 1995, and related notes have been prepared pursuant to
the rules and regulations of the Securities and Exchange Commission.
Accordingly, certain information and footnote disclosures normally
included in financial statements prepared in accordance with generally
accepted accounting principles have been omitted pursuant to such rules
and regulations. The accompanying unaudited interim consolidated condensed
financial statements and related notes should be read in conjunction with
the financial statements and related notes included in the 1996 Annual
Report to Stockholders of Michael Anthony Jewelers, Inc. (the "Company").
The information furnished reflects, in the opinion of the management of
the Company, all adjustments, consisting of normal recurring accruals,
which are necessary to present a fair statement of the results for the
interim periods presented.
The interim figures are not necessarily indicative of the results to be
expected for the fiscal year due to the seasonal nature of the business.
Earnings Per Share
------------------
Earnings per share for all periods presented were computed on a primary
basis using the weighted average number of shares of common stock
outstanding. Options and warrants outstanding were not materially
dilutive.
Reclassifications
-----------------
Certain reclassifications were made to the prior year's financial
statements to conform to the current year's presentation.
2. PRODUCT PRICING
---------------
The Company's products, the principal component of which is gold, are
generally sold at prices which are based on the market price of gold on
the date merchandise is shipped to the customer.
- 7 -
<PAGE> 8
MICHAEL ANTHONY JEWELERS, INC. AND SUBSIDIARIES
FORM 10-Q FOR QUARTER ENDED APRIL 27, 1996
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(INFORMATION SUBSEQUENT TO JANUARY 27, 1996 IS UNAUDITED)
2. PRODUCT PRICING (Continued)
---------------
Therefore, the Company's sales volume is significantly influenced by the
market price of gold. The selling prices for certain customers may be
fixed for a specific period of time. In such cases, the Company is able to
shift a substantial portion of the risks of gold price fluctuation by
hedging against changes in the price of gold by entering into forward
contracts or purchasing futures or options on futures.
The Company's consigned gold inventory is hedged against the effects of
price fluctuations. The Company has entered into arrangements with certain
gold lenders (the "Gold Lenders") pursuant to which the Company does not
purchase gold from the Gold Lenders until receipt of a purchase order
from, or shipment of jewelry to, its customers. These arrangements permit
the Company to match the sales price of the product with the price the
Company pays for the gold.
The average price of gold in the current quarter was $394 per ounce
as compared to $386 per ounce for the quarter ended April 29, 1995.
3. INVENTORIES
-----------
Inventories consist of:
<TABLE>
<CAPTION>
April 27, January 27,
1996 1996
---------- -----------
(Unaudited)
(In thousands)
<S> <C> <C>
Finished goods $50,654 $56,621
Work in process 21,646 15,240
Raw materials 7,071 8,537
-------- --------
79,371 80,398
Less:
Consigned gold 60,569 60,700
-------- -------
$18,802 $19,698
======== =======
</TABLE>
Inventories as of April 27, 1996 and January 27, 1996 excluded
154,600 and 149,300 ounces of gold on consignment, respectively.
- 8 -
<PAGE> 9
MICHAEL ANTHONY JEWELERS, INC. AND SUBSIDIARIES
FORM 10-Q FOR QUARTER ENDED APRIL 27, 1996
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(INFORMATION SUBSEQUENT TO JANUARY 27, 1996 IS UNAUDITED)
4. STOCK REPURCHASE PROGRAM
------------------------
In December 1995, the Company announced a Common Stock repurchase program
pursuant to which the Company may repurchase up to 750,000 shares of
Common Stock. As of June 3, 1996, the Company had repurchased a total of
80,000 shares on the open market for an aggregate price of approximately
$220,000.
5. NEW ACCOUNTING STANDARD
-----------------------
Effective January 28, 1996, the Company adopted Statement of Financial
Accounting Standards No. 121 "Accounting for the Impairment of Long-Lived
Assets and for Long-Lived Assets to be Disposed of." The adoption of the
new standard did not have any effect on the Company's financial position
or results of operations for the quarter ended April 27, 1996.
6. SUBSEQUENT EVENT
----------------
On May 24, 1996, the Board of Directors authorized the Company to retire
965,200 shares of Common Stock. The retirement will be effective as of May
24, 1996.
- 9 -
<PAGE> 10
ITEM 2 MICHAEL ANTHONY JEWELERS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(INFORMATION SUBSEQUENT TO JANUARY 27, 1996 IS UNAUDITED)
RESULTS OF OPERATIONS FOR THE THREE MONTHS
- ------------------------------------------
ENDED APRIL 27, 1996 AND APRIL 29, 1995
- ---------------------------------------
Net sales for the three months ended April 27, 1996 were approximately
$29,203,000, an increase of 7% from net sales of approximately $27,260,000 for
the comparable period of the prior year. The increase in net sales was
primarily related to increased shipments to both the retail and wholesale
segments of the Company's customer base.
Gross profit margin decreased to approximately 17.0% of net sales for the three
months ended April 27, 1996 compared to approximately 19.1% of net sales for
the comparable period of the prior year. The decrease in gross margin was
primarily attributable to the liquidation of discontinued inventory and other
inventory adjustments and a change in the Company's product mix.
Selling, general and administrative expenses for the three months ended April
27, 1996 were approximately $4,335,000, a decrease of $158,000 or 4% from
approximately $4,493,000 for the comparable period of the prior year. The
decrease is primarily attributable to reductions in advertising expenses,
payroll and payroll related expenses, and bad debt expenses. These decreases
were partly offset by increases in royalty and licensing related fees and
showroom supplies. As a percentage of sales, selling, general and
administrative expenses decreased to 14.8% for the three months ended April 27,
1996, compared to 16.5% in the comparable period of the prior year.
Other expenses and income for the three months ended April 27, 1996 were
approximately $606,000, a decrease of $135,000 or 18%, compared to
approximately $741,000 for the comparable period last year. Gold consignment
fees decreased $63,000 due to the Company's lower level of consignment
inventory as compared to last year. Interest expense decreased $27,000 due to
the Company's principal payments on its long term debt in May 1995 and January
1996. Other income increased $45,000 primarily due to the Company's higher cash
position as compared to last year.
As a result of the above factors, the Company had net income of approximately
$8,000 for the three months ended April 27, 1996, compared to a net loss of
approximately $13,000 for the comparable period of the prior year.
- 10 -
<PAGE> 11
ITEM 2 MICHAEL ANTHONY JEWELERS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(INFORMATION SUBSEQUENT TO JANUARY 27, 1996 IS UNAUDITED)
Liquidity and Capital Resources
- -------------------------------
The Company relies on a gold consignment program, short-term and long-term
borrowings and internally generated funds to finance its operations. The
Company fills most of its gold supply needs through gold consignment
arrangements with the Gold Lenders. Under the terms of those arrangements, the
Company is entitled to lease the lesser of (i) an aggregate of 250,000 ounces
of fine gold or (ii) consigned gold with an aggregate value equal to
$106,899,000. The consigned gold is secured by certain property of the Company
including inventory and machinery and equipment. The Company pays the Gold
Lenders a consignment fee based on the dollar value of ounces of gold
outstanding under their respective agreements, which value is based on the
daily Second London Gold Fix. The Company believes that its financing rate
under the consignment arrangements is substantially similar to the financing
rates charged to gold consignees similarly situated to the Company. As of April
27, 1996, the Company held 154,553 ounces of gold on consignment with a market
value of $60,569,000.
The consignment agreements contain certain restrictive covenants relating to
maximum usage, net worth, working capital and other financial ratios and each
of the agreements requires the Company to own a specific amount of gold at all
times. At April 27, 1996, the Company was in compliance with the covenants in
its consignment agreements and the Company's owned gold inventory was valued at
approximately $5,403,000. Management believes that the supply of gold available
through the Company's gold consignment arrangements, in conjunction with the
Company's owned gold, is sufficient to meet the Company's requirements.
The consignment agreements are terminable by the Company or the respective Gold
Lenders upon 30 days notice. If any Gold Lender were to terminate its existing
gold consignment arrangement, the Company does not believe it would experience
an interruption of its gold supply that would materially adversely affect its
business. The Company believes that other consignors would be willing to enter
into similar arrangements if any Gold Lender terminates its relationship with
the Company.
Consigned gold is not included in the Company's inventory, and there is no
related liability recorded. As a result of these consignment arrangements, the
Company is able to shift a substantial portion of the risk of market
fluctuations in the price of gold to the Gold Lenders, since the Company does
not purchase gold from the Gold Lenders until receipt of a purchase order from,
or shipment of jewelry to, its customers. The Company then either locks in the
selling price of the jewelry to its customers concurrently with the required
purchase of gold from the Gold Lenders or hedges against changes in the price
of gold by entering into forward contracts or purchasing futures or options on
futures that are listed on the COMEX.
- 11 -
<PAGE> 12
ITEM 2 MICHAEL ANTHONY JEWELERS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(INFORMATION SUBSEQUENT TO JANUARY 27, 1996 IS UNAUDITED)
Liquidity and Capital Resources (Continued)
- -------------------------------
While the Company believes its supply of gold is relatively secure, significant
increases or rapid fluctuations in the cost of gold may result in reduced
demand for the Company's products. From January 28, 1996 until April 27, 1996,
the closing price of gold according to the Second London Gold Fix ranged from a
low of $391 per ounce to a high of nearly $415 per ounce. There can be no
assurances that fluctuations in the precious metals markets and credit would
not result in an interruption of the Company's gold supply or the credit
arrangements necessary to allow the Company to support its accounts receivable
and continue the use of consigned gold.
In each of 1987 and 1992, the Company issued $10,000,000 principal amount of
senior secured notes with various insurance companies, which accrue interest at
10.5% and 8.61% per annum, respectively. In February 1995, the Company issued
an additional $6,000,000 principal amount of senior secured notes with various
insurance companies, which currently accrue interest at 6.75% per annum. These
notes are secured by the Company's accounts receivable, machinery and
equipment, inventory (secondary lien to the Gold Lenders) and proceeds. In
addition, the note purchase agreements contain certain restrictive financial
covenants and restrict the payment of dividends. At April 27, 1996, the Company
was in compliance with the covenants and $17,028,000 of principal remained
outstanding under the notes issued in 1987, 1992 and 1995.
On October 6, 1995, the Company obtained a loan from a bank in the amount of
$2,500,000. As collateral for the loan, the Company granted the bank a first
mortgage on the Company's corporate headquarters. The mortgage has a ten-year
term and interest on the mortgage will accrue at 8% per annum. In addition, the
mortgage contains certain restrictive financial covenants. At April 27, 1996,
the Company was in compliance with the covenants. As of April 27, 1996,
$2,455,000 of principal remained outstanding under the mortgage.
In September 1994, the Company entered into a line of credit arrangement with a
commercial bank (the "Line of Credit"), under which the Company may borrow up
to $15,000,000. The Line of Credit is secured by certain assets of the Company,
including accounts receivable and inventory. As of April 27, 1996, there was no
amount outstanding under the Line of Credit. The Line of Credit has been
renewed and currently expires on July 31, 1996, subject to annual renewal.
Management believes that the Line of Credit will be renewed; however, if the
current lender decides not to renew the Line of Credit, the Company believes
that other lenders would be willing to enter into a similar arrangement.
- 12 -
<PAGE> 13
ITEM 2 MICHAEL ANTHONY JEWELERS, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(INFORMATION SUBSEQUENT TO JANUARY 27, 1996 IS UNAUDITED)
Liquidity and Capital Resources (Continued)
- -------------------------------
Cash and marketable securities increased from $6,673,000 at January 27, 1996 to
$12,715,000 at April 27, 1996. This increase was primarily due to the Company's
decrease in accounts receivable.
Cash flows from operations was $8,551,000 for the three months ended April 27,
1996. During the quarter accounts receivable decreased $9,929,000, due to
seasonal factors and aggressive collections. Additionally, inventory decreased
$896,000 due to the Company's increased effort to reduce its inventory levels.
These cash inflows were reduced in part by a reduction of $2,127,000 in accrued
gold purchases, trade payables and accrued expenses. In total, cash flows from
operations increased $5,660,000 from the comparable period in the prior year.
Cash flows from investing activities represented $771,000 for equipment
purchases as compared to $1,866,000 of equipment purchases from the comparable
period in the prior period. Cash outflows from financing was $1,738,000 for the
period, representing scheduled payments of long-term debt.
As part of its long-term strategic planning, the Company is reviewing a plan to
expand its manufacturing and distribution facilities and to acquire certain
properties it is currently leasing from MacQuesten Realty Company ("MRC") (the
"Leased Properties"). In the event the Company were to acquire any of such
properties, the Company may incur or assume additional long-term indebtedness
in order to finance their purchase.
For the balance of fiscal 1997, the Company projects capital expenditures of
approximately $2,100,000, which includes certain improvements on its leased and
owned properties, but does not include any other expenses related to the
possible acquisition of the Leased Properties.
Except with respect to financing for the possible acquisition of its Leased
Properties as discussed above, the Company believes that its long-term debt and
existing lines of credit provide sufficient funding for the Company's
operations. In the event that the Company requires additional financing during
fiscal 1997, it will be necessary to fund this requirement through expanded
credit facilities with its existing or other lenders. The Company believes that
such additional financing can be arranged.
- 13 -
<PAGE> 14
MICHAEL ANTHONY JEWELERS, INC. AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 1 through Item 5
Not applicable.
Item 6.
(a) Exhibits
--------
27 Financial Data Schedule
(b) Reports on Form 8-K
-------------------
Not applicable.
- 14 -
<PAGE> 15
MICHAEL ANTHONY JEWELERS, INC. AND SUBSIDIARIES
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.
MICHAEL ANTHONY JEWELERS, INC.
Dated: June 10, 1996 By:/s/Allan Corn
---------------------
Allan Corn
Senior Vice President and
Chief Financial Officer
- 15 -
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE FINANCIAL
STATEMENTS FOR MICHAEL ANTHONY JEWELERS, INC. AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-25-1997
<PERIOD-START> JAN-28-1996
<PERIOD-END> APR-27-1996
<CASH> 12,715
<SECURITIES> 0
<RECEIVABLES> 21,539
<ALLOWANCES> (1,281)
<INVENTORY> 18,802
<CURRENT-ASSETS> 54,451
<PP&E> 35,984
<DEPRECIATION> 17,659
<TOTAL-ASSETS> 74,776
<CURRENT-LIABILITIES> 10,251
<BONDS> 17,448
<COMMON> 9
0
0
<OTHER-SE> 46,030
<TOTAL-LIABILITY-AND-EQUITY> 74,776
<SALES> 29,203
<TOTAL-REVENUES> 0
<CGS> 24,250
<TOTAL-COSTS> 4,953
<OTHER-EXPENSES> (174)
<LOSS-PROVISION> 30
<INTEREST-EXPENSE> 780
<INCOME-PRETAX> 12
<INCOME-TAX> 4
<INCOME-CONTINUING> 0
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 8
<EPS-PRIMARY> .00
<EPS-DILUTED> 0
</TABLE>
