UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D C. 20549
FORM 10-Q
[X]QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934.
For the quarterly period ended February 26, 2000
or
THE SECURITIES EXCHANGE ACT OF 1934
[ ]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 1-9681
JENNIFER CONVERTIBLES, INC.
(Exact name of registrant as specified in its charter)
Delaware 11-2824646
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
419 Crossways Park Drive, Woodbury, New York 11797
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (516) 496-1900
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
(APPLICABLE ONLY TO CORPORATE ISSUERS)
Indicate the number of shares outstanding of the issuer's common stock as
of February 26, 2000: 5,704,058
<PAGE>
JENNIFER CONVERTIBLES, INC. AND SUBSIDIARIES
Index to Consolidated Financial Statements
Part I - Financial Information
Item I - Financial Statements
Consolidated Balance Sheets at February 26, 2000
(Unaudited) and August 28, 1999................................ 2
Comparative Consolidated Statements of Operations
for the thirteen weeks ended February 26, 2000 and
February 27, 1999 (Unaudited).................................. 3
Comparative Consolidated Statements of Cash Flows
for the thirteen weeks ended February 26, 2000
and February 27, 1999 (Unaudited).............................. 4
Notes to Unaudited Consolidated Financial Statements............. 5
Item 2 - Management's Discussion and Analysis of Financial
Condition and Results of Operations..................... 8
Item 3 - Quantitative and Qualitative Disclosures about
Market Risk.............................................13
Part II - Other Information......................................14
<PAGE>
PART I - Financial Information
Item I. Financial Information
JENNIFER CONVERTIBLES, INC. AND SUBSIDIARIES
<TABLE>
Consolidated Balance Sheets
(In thousands, except for share data)
<CAPTION>
ASSETS February 26, August 28,
2000 1999
<S> <C> <C>
Current assets: (unaudited)
Cash and cash equivalents $ 6,333 $ 6,907
Accounts receivable 448 31
Merchandise inventories 10,176 9,634
Due from Private Company and
Unconsolidated Licensees,
net 907 1,184
Prepaid expenses and other current
assets 570 596
Total current assets 18,434 18,352
Store fixtures, equipment and leasehold
improvements, at cost, net 5,072 5,377
Deferred lease costs and other
intangibles, net 510 611
Goodwill, at cost, net 1,102 1,142
Other assets (primarily security 679 663
deposits)
$ 25,797 $ 26,145
LIABILITIES AND (CAPITAL DEFICIENCY)
Current liabilities:
Accounts payable, trade $ 11,583 $ 15,030
Customer deposits 10,578 8,757
Accrued expenses and other current
liabilities 5,313 4,447
Accounts payable under acquisition
agreement 225 699
Total current liabilities 27,699 28,933
Deferred rent and allowances 4,993 5,185
Long-term obligations under capital
leases 34 63
Total liabilities 32,726 34,181
Commitments and contingencies
(Capital deficiency)
Preferred stock, par value $.01 per
share.
Authorized 1,000,000 shares
Series A Convertible Preferred -
10,000 shares issued and outstanding
at November 27, 1999 and August 28,
1999(liquidation preference $5,000) - -
Series B Convertible Preferred - 26,664
shares issued and outstanding at
November 27, 1999 and August 28, 1999
(liquidation preference $133) - -
Common stock, par value $.01 per
shares; authorized 10,000,000 shares;
issued and outstanding 5,704,058 57 57
Additional paid in capital 27,482 27,482
Accumulated (deficit) ( 34,468) ( 35,575)
( 6,929) ( 8,036)
$ 25,797 $ 26,145
</TABLE>
See Accompanying notes to unaudited consolidated financial
statements.
2
<PAGE>
JENNIFER CONVERTIBLES INC. AND SUBSIDIARIES
<TABLE>
Consolidated Statements of Operations
(in thousands, except share data)
(unaudited)
<CAPTION>
Thirteen weeks Thirteen weeks Twenty-six weeks Twenty-six weeks
ended ended ended ended
26-Feb-00 27-Feb-99 26-Feb-00 27-Feb-99
<S> <C> <C> <C> <C>
Net sales $26,929 $23,230 $58,990 $51,604
Cost of sales, including store occupancy,
warehousing, delivery and fabric
protection 17,321 15,621 37,447 34,351
Selling, general administrative
expenses 9,018 8,529 19,825 18,415
Provision for amounts due from Private
Company and Unconsolidated
Licenses - 119 - 119
Depreciation and amortization 402 411 815 832
26,741 24,680 58,087 53,717
Operating profit (loss) 188 ( 1,450) 903 ( 2,113)
Other income:
Royalty income 86 98 178 205
Interest income 61 19 131 66
Interest expense ( 27) (36) ( 52) ( 87)
Other income, net 2 10 127 68
122 91 384 252
Profit (loss) before income taxes 310 ( 1,359) 1,287 ( 1,861)
Income taxes 82 108 180 232
Net profit $ 228 ($1,467) $1,107 ($2,093)
Basic profit (loss) per common $0.04 ($0.26) $0.19 ($ 0.37)
Diluted profit (loss) per common share $0.03 ($0.26) $0.15 ($ 0.37)
Weighted average common shares outstanding
basic profit (loss) per share 5,704,058 5,700,725 5,704,058 5,700,725
Weighted average common shares outstanding
diluted profit (loss) per share 7,262,357 5,700,725 7,209,158 5,700,725
</TABLE>
See Accompanying notes to unaudited consolidated financial statements.
3
<PAGE>
JENNIFER CONVERTIBLES INC. AND
SUBSIDIARIES
<TABLE>
Consolidated Statements of Cash Flows
(in thousands) (unaudited)
<CAPTION>
Thirteen Thirteen Twenty-six Thirteen Thirteen Twenty-six Thirteen
weeks weeks weeks weeks weeks weeks weeks
ended ended ended ended ended ended ended
26-Feb-00 27-Nov-99 26-Feb-00 27-Feb-99 28-Nov-98 27-Feb-99 28-Nov-98
<S> <C> <C> <C> <C> <C> <C> <C>
Cash flows from operating activities:
Net income (loss) $228 $879 $1,107 ($1,467) ($626) ($2,093) ($626)
Adjustments to reconcile net income
(loss) to net cash provided by
operating activities:
Depreciation and amortization 402 413 815 411 421 832 421
Provision for warranty costs 25 25 50 25
Loss from store closing (9) (9) (9)
Deferred rent (65) (127) (192) (123) (105) (228) (105)
Provision for losses from Private
Company and Unconsolidated Licenses 119 119
Changes in operating assets and
liabilities:
(Increase)decrease in merchandise 286 (828) (542) (585) 1,848 1,263 1,848
inventories
Decrease in prepaid expenses and (308) 334 26 (313) 153 (160) 153
other current assets
(Increase) in accounts receivables 53 (470) (417) 580 (520) 60 (520)
(Increase) in due from Private
Company and Unconsolidated Licenses 291 (14) 277 (179) (522) (701) (522)
(Increase) decrease in other assets, (25) 9 (16) 2 60 62 60
net
(Decrease) in accounts payable trade (2,943) (504) (3,447) (601) (3,130) (3,731) (3,130)
Increase (decrease) increase in 1,722 99 1,821 2,384 (12) 2,372 (12)
customer deposits
Increase (decrease) in accrued
expenses and other payables (173) 565 392 60 (359) (299) (359)
Net cash provided by (used in) (532) 356 (176) 313 (2,776) (2,463) (2,776)
operating activities
Cash flows from investing activities:
Capital expenditures (218) (151) (369) (95) (59) (154) (59)
(Increase) decrease in deferred
lease costs and other intangibles 0 0 0 (1) 2 1 2
Net cash (used in) investing activities (218) (151) (369) (96) (57) (153) (57)
Cash flows from financing activities:
Payments of obligations under capital (6) (23) (29) (66) (63) (129) (63)
leases
Net cash (used in) provided by (6) (23) (29) (66) (63) (129) (63)
financing activities
Net increase (decrease) in cash and (756) 182 (574) 151 (2,896) (2,745) (2,896)
cash equivalents
Cash and cash equivalents at beginning 7,089 6,907 6,907 1,488 4,384 4,384 4,384
of period
Cash and cash equivalents at end of $6,333 $7,089 $6,333 $1,639 $1,488 $1,639 $1,488
period
Supplemental disclosure of cash flow
information:
Income taxes paid during the $82 $98 $180 $108 $124 $232 $124
period
Interest paid $27 $25 $52 $36 $51 $87 $51
Supplemental disclosure of non-cash
financing activities:
Issuance of Series B Preferred $111 $111
Stock-in settlement of liability
</TABLE>
See Accompanying notes to unaudited consolidated financial statements.
4
<PAGE>
JENNIFER CONVERTIBLES, INC.
Notes to Unaudited Consolidated Financial Statements
For the Twenty-Six Weeks Ended February 26, 2000
(In thousands except for share amounts)
(1) Basis of Presentation
The accompanying unaudited consolidated financial statements of
Jennifer Convertibles, Inc. (the "Company") and subsidiaries and certain
licensees have been prepared in accordance with generally accepted
accounting principles for interim financial information and with the
instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly,
they do not include all of 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 accruals) considered necessary for a fair presentation
have been included. Due to many factors inherent in the retail industry,
the operating results for the interim period ended February 26, 2000 are
not necessarily indicative of the results that may be expected for the
year ending August 26, 2000. For further information, refer to the
consolidated financial statements and footnotes thereto included in the
Company's Annual Report on Form 10-K for the year ended August 28, 1999.
(2) Merchandise Inventories
Merchandise inventories are stated at the lower of cost
(determined on the first-in, first-out method) or market and are
physically located, as follows:
02/26/00 8/28/99
Showrooms $ 4,737 $ 4,203
Warehouses 5,439 5,431
$10,176 $ 9,634
Showroom inventory increased by $534, of which $265 was for 7
new stores opened in this fiscal year. Vendor discounts and allowances
in respect to merchandise purchased by the Company are included as a
reduction of inventory and cost of sales.
(3) Commitments, Contingencies and Other Matters
Class Action and Derivative Action Lawsuits
Between December 6, 1994 and January 5, 1995, the Company was
served with eleven class action complaints and six derivative action
lawsuits which deal with losses suffered as a result of the decline in
market value of the Company's stock as well as the Company having
"issued false and misleading statements regarding future growth
prospects, sales, revenues and net income".
5
<PAGE>
JENNIFER CONVERTIBLES, INC.
Notes to Unaudited Consolidated Financial Statements
For the Twenty-Six Weeks Ended February 26, 2000
(In thousands except for share amounts)
Settlement Of Class Action Litigation
On November 30, 1998, the court approved the settlement of a
series of 11 class actions commenced in December 1994 against the
Company, various of the Company's present and former officers and
directors, and certain third parties, in the United States District
Court for the Eastern District of New York. The complaints in all of
these actions alleged that the Company and the other named defendants
violated Section 10(b) of the Securities Exchange Act of 1934 and Rule
10b-5 promulgated thereunder in connection with the press release
issued by the Company on or about December 2, 1994. All of these class
actions were consolidated under the caption In Re Jennifer
Convertibles, Case No. 94 Civ. 5570, pending in the Eastern District of
New York. The settlement provides for the payment to certain members of
the class and their attorneys of an aggregate maximum amount of $7,000
in cash and preferred stock having a value of $370. The cash portion
of the settlement was funded entirely by insurance company proceeds.
The Company issued 26,664 shares of series B preferred stock,
convertible into 18,664 shares of our common stock. These shares are
non-voting, have a liquidation preference of $5.00 per share or $133 in
total, and accrue dividends at the rate of $.35 per share per annum.
The cumulative unpaid dividends at February 26, 2000 totaled $12. The
preferred stock is convertible at the Company's option at any time
after the common stock trades at a price of at least $7.00 per share.
The Derivative Litigation
Beginning in December 1994, a series of six actions were commenced as
derivative actions on the Company's behalf against Harley J.
Greenfield, Fred J. Love, Edward B. Seidner, Bernard Wincig, Michael J.
Colnes, Michael Rosen, Al Ferarra, William M. Apfelbaum, Glenn S.
Meyers, Lawrence R. Haut, the private company, Jerome I. Silverman,
Jerome I. Silverman Company, Selig Zises and BDO Seidman & Co. (each of
these individuals and entities is named as a defendant in at least one
action) in: (a) the United States District Court for the Eastern
District of New York, entitled Philip E. Orbanes V. Harley J.
Greenfield, et al., Case No. CV 94-5694 (DRH) and Meyer Okun and David
Semel V. Al Ferrara, et al., Case No. CV 95-0080 (DRH); Meyer Okun
Defined Benefit Pension Plan, et al. V. Bdo Seidman & Co., Case No. CV
95-1407 (DRH); and Meyer Okun Defined Benefit Pension Plan V. Jerome I.
Silverman Company, et. al., Case No. CV 95-3162 (DRH); (b) the Court of
Chancery for the County of New Castle in the State of Delaware,
entitled Massini V. Harley Greenfield, et. al., Civil Action No. 13936
(WBC); and (c) the Supreme Court of the State of New York, County of
New York, entitled Meyer Okun Defined Benefit Pension Plan V.
Harley J. Greenfield, et. al., Index No. 95-110290.
6
<PAGE>
JENNIFER CONVERTIBLES, INC.
Notes to Unaudited Consolidated Financial Statements
For the Twenty-Six Weeks Ended February 26, 2000
(In thousands except for share amounts)
The complaints in each of these actions assert various acts
of wrongdoing by the defendants, as well as claims of breach of
fiduciary duty by the Company's present and former officers and
directors, including but not limited to claims relating to the matters
described in the Company's December 2, 1994 press release. As
described in prior filings, the Company had entered into settlement
agreements as to the derivative litigation subject, in the case of
certain of such agreements, to court approval of such settlement by a
certain date. Such court approval was not obtained by such date, and
in July 1998, the private company exercised its option to withdraw
from the settlement. The Company is currently negotiating with the
private company with respect to a new settlement. However, there can
be no assurance that a settlement will be reached or as to the terms of
such settlement.
Subsequent Event
On March 23, 2000 the Company purchased the stock of the previously
unconsolidated licensee known as South Florida Holding Company for the
sum of $800. The acquisition will add six stores in Florida to the
consolidated total. These stores generated $3,794 of revenues for the
fiscal year ended August 28, 1999. Consolidated financial statements
beginning with March 25, 2000, our third quarter, will include the
operations of these additional six stores.
7
<PAGE>
JENNIFER CONVERTIBLES, INC.
For the Twenty-Six Weeks Ended February 26, 2000
(In thousands except for share amounts)
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Results of Operations:
Except for historical information contained herein, this
"Management's Discussion and Analysis of Financial Condition and Results
of Operations" contains forward-looking statements within the meaning of
the U. S. Private Securities Litigation Reform Act of 1995, as amended.
These statements involve known and unknown risks and uncertainties that
may cause the Company's actual results or outcome to be materially
different from any future results, performance or achievements expressed
or implied by such forward looking statements. Factors that might cause
such differences include, but are not limited to the risk factors set
forth under the caption "Risk Factors" in the Company's Annual Report on
Form 10-K for the fiscal year ended August 28, 1999. In addition to
statements, which explicitly describe such risks and uncertainties,
investors are urged to consider statements labeled with the terms
"believes," "belief," "expects," "intends," "plans" or "anticipates" to
be uncertain and forward-looking.
Net Sales:
During the twenty-six week period ended February 26, 2000 our
sales increased by 14.3% to $58.9 million from the $51.6 million
reported for the same period in the prior year. Comparable store sales
(sales at those stores open for the entire twenty-six week period in
the current and prior year periods) increased by 11.8%.
For the thirteen-week period ended February 26, 2000, our sales
increased by 15.9% to $26.9 million from the $23.2 million for the same
period in the prior fiscal year. Comparable store sales (sales at those
stores open for the entire period in the current and prior year
periods) increased by 12.5% for the thirteen-week period ended February
26, 2000. A total of 3 new stores were opened in the thirteen-week
period as compared to none in the prior year period.
8
<PAGE>
JENNIFER CONVERTIBLES, INC.
For the Twenty-Six Weeks Ended February 26, 2000
(In thousands except for share amounts)
Cost of Sales:
Twenty-six Weeks Ended February 26, 2000:
Cost of sales was $37,447 and decreased by 3.1% as a percentage of
sales to 63.5%, as compared to $34,351 or 66.6% as a percentage of sales
for the same twenty-six week period in the prior year. The decrease of
3.1% from the previous period as a percentage of sales is primarily
attributable to:
Merchandise cost decreases of .7% as a percentage of sales.
Occupancy costs decreases of .9% as a percentage of sales due to a
higher sales level and relatively fixed occupancy costs.
Warehouse expenses reflecting a $659 reduction, or 1.1% as a
percentage of sales, due to a cost reduction negotiated with the
private company.
Thirteen-weeks Ended February 26, 2000:
Cost of sales decreased by 2.9% as percentage of sales for
the thirteen-week period ended February 26, 2000 as compared to the
same period in the prior year. The decrease in cost of sales is
primarily attributable to merchandise cost reductions of 1.2%
(including freight cost reductions of .5%) and occupancy costs
reductions as a percentage of sales by .9%, due to higher sales volume.
Warehouse expenses for the thirteen-week period reflect a reduction of
$204 (.6% as a percentage of sales) due to a cost reduction negotiated
with the private company.
9
<PAGE>
JENNIFER CONVERTIBLES, INC.
For the Twenty-Six Weeks Ended February 26, 2000
(In thousands except for share amounts)
Selling, General and Administrative and Other Expenses:
For the twenty-six week period ended February 26, 2000 selling,
general and administrative expenses were $19,825 (33.6% as a percentage
of sales) as compared to $18,415 (35.7% as a percentage of sales) for
the same period last year.
For the thirteen-week period ended February 26, 2000 selling,
general and administrative expenses were $9,018 (33.5% as a percentage
of sales) as compared to $8,529 (36.7% as a percentage of sales) for
the same thirteen-week period last year.
The most significant reason for the decrease in selling, general
and administrative expenses, as a percentage of sales, was the ability
to spread relatively fixed costs, such as base salaries, over the
higher sales volumes.
Another significant decreases in expense for the twenty-six week
and thirteen-week periods was lower telephone cost ($110 for the twenty-
six weeks and $85 for the thirteen-weeks) due to the implementation of
aggressive programs to reduce the number of phone lines and the use of
phone lines for multiple purposes (voice, facsimile and data
communications).
Included in the costs for the thirteen-weeks ended February 26,
2000 is $90 worth of expenses associated with the opening of three new
stores. These new stores generated only $7 in sales in the quarter due to
their recent store opening dates.
Net income for the thirteen week period ended February 26, 2000 was
$228 or $.04 basic profit per share compared to a net loss of ($1,467) or
($0.26) basic profit per share for the same period in the prior fiscal
year. For the twenty-six weeks ended February 26, 2000, net income was
$1,107 or $.19 basic profit per share compared to a net loss of ($2,093)
or ($0.37) basic profit per share in the prior year fiscal period.
10
<PAGE>
JENNIFER CONVERTIBLES, INC.
For the Twenty-Six Weeks Ended February 26, 2000
(In thousands except for share amounts)
Liquidity and Capital Resources:
At February 26, 2000, we had an aggregate working capital
deficiency of $(6,929) compared to a deficiency of $(8,036) at August
28, 1999 and had available cash and cash equivalents of $6,333 compared
to $6,907 at August 28, 1999. The increase in working capital is due
to our positive results from operations over the last twenty-six week
period.
We continue to fund the operations of certain of our limited
partnership licensees whose amounts are included in our consolidated
financial statements and which we refer to in this report as our
"LP's", some of which continue to generate operating losses. Any such
losses have been consolidated in our consolidated financial statements.
It is our intention to continue to fund these operations in the future.
Our receivables from the private company, the unconsolidated licensees,
and Southeastern Florida Holding Corp. had been fully reserved for in
prior years. However, there can be no assurance that the total
reserved amount of receivables of $6,654 as of February 26, 2000 will
be collected. As previously mentioned in the notes to the financial
statements, we acquired the stock of South Florida Holding Company on
March 23, 2000 and will consolidate its results in future reports.
Starting in 1995, the private company and we entered into offset
agreements that permit us to offset our current monthly obligations to
each other in excess of $1,000 of credit extended by us to the private
company. Additionally, such agreements, the private company in November
1995 agreed to assume certain liabilities owed to us by the
unconsolidated licensees and Southeastern Florida Holding Corp. Based
on the payment terms of these offset agreements, current obligations of
the private company and the unconsolidated licensees as of February 26,
2000 have been paid.
11
<PAGE>
JENNIFER CONVERTIBLES, INC.
For the Twenty-Six Weeks Ended February 26, 2000
(In thousands except for share amounts)
In March 1996, we executed a Credit and Security Agreement
with our principal supplier, Klaussner Furniture Industries, Inc.,
which extended the payment terms for merchandise shipped from 60 days
to 81 days. Since the second quarter of the past fiscal year, we have
not exceeded these 60-day payment terms by more than 14 days. As of
February 26, 2000, there were no amounts owed to Klaussner which were
over 60 days. On December 11, 1997, the Credit and Security Agreement
was modified to include a late fee of .67% per month for invoices we
pay beyond the normal 60 day terms. This provision became effective
commencing with the month of January 1998. As part of the Credit and
Security Agreement, we granted a security interest in all of our assets
including the collateral assignment of our leasehold interests, our
trademarks and a licensee agreement to operate our business in the
event of our default.
For the twenty-six weeks ended February 26, 2000 we opened 7
new stores, had no store closings and spent $369 for capital
expenditures. We currently anticipate capital expenditures
approximating $950 during the balance of fiscal 2000 to support the
opening of new stores. A portion of our store openings may be funded by
Klaussner pursuant to an agreement, entered into in December 1999,
pursuant to which Klaussner agreed, subject to certain conditions, to
lend us $150 per new store for up to 10 new stores. Each loan will be
evidenced by a three-year note, bearing interest at the LIBOR plus 3%.
The notes are subject to acceleration under certain circumstances
including closing of the stores funded by the loan or if we do not
purchase at least 50% of our upholstered furniture by dollar volume
from Klaussner. In addition, Klaussner will be entitled to a premium on
the cost of furniture purchased from it by us for sale to customers of
the stores funded by Klaussner. To date we have not borrowed any funds
from Klaussner under this arrangement.
We anticipate continued positive operating cash flow through
the end of fiscal 2000. In the opinion of management, this positive
cash flow will adequately fund operations during the current fiscal
year.
12
<PAGE>
JENNIFER CONVERTIBLES, INC.
For the Twenty-Six Weeks Ended February 26, 2000
(In thousands except for share amounts)
Item 3. Quantitative and Qualitative Disclosures about Market Risk.
Not applicable.
13
<PAGE>
JENNIFER CONVERTIBLES, INC.
PART II
OTHER INFORMATION
ITEMS 1. through 5. NOT APPLICABLE.
ITEM 6. (a) NONE
(b) REPORTS ON FORM 8-K
14
<PAGE>
JENNIFER CONVERTIBLES, INC.
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.
JENNIFER CONVERTIBLES, INC.
April 4, 2000 By: /s/ Harley J. Greenfield
Harley J. Greenfield, Chairman of the
Board and Chief Executive Officer
15
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1
<S> <C> <C> <C> <C>
<PERIOD-TYPE> 3-MOS 3-MOS 6-MOS 6-MOS
<FISCAL-YEAR-END> AUG-26-2000 AUG-28-1999 AUG-26-2000 AUG-28-1999
<PERIOD-END> FEB-26-2000 FEB-27-2000 FEB-26-2000 FEB-27-2000
<CASH> 6,333,000 1,639,000 6,333,000 1,639,000
<SECURITIES> 0 0 0 0
<RECEIVABLES> 448,000 440,000 448,000 440,000
<ALLOWANCES> 0 0 0 0
<INVENTORY> 10,176,000 8,755,000 10,176,000 8,755,000
<CURRENT-ASSETS> 18,434,000 12,565,000 18,434,000 12,565,000
<PP&E> 14,837,000 13,890,000 14,837,000 13,890,000
<DEPRECIATION> 9,765,000 8,323,000 9,765,000 8,323,000
<TOTAL-ASSETS> 25,797,000 20,032,000 25,797,000 20,032,000
<CURRENT-LIABILITIES> 27,699,000 25,016,000 27,699,000 25,016,000
<BONDS> 0 0 0 0
0 0 0 0
0 0 0 0
<COMMON> 57,000 57,000 57,000 57,000
<OTHER-SE> (6,986,000) (10,487,000) (6,986,000) (10,487,000)
<TOTAL-LIABILITY-AND-EQUITY> 25,797,000 20,032,000 25,797,000 20,032,000
<SALES> 26,929,000 23,230,000 58,990,000 51,604,000
<TOTAL-REVENUES> 27,078,000 23,357,000 59,426,000 51,943,000
<CGS> 17,321,000 15,621,000 37,447,000 34,351,000
<TOTAL-COSTS> 26,741,000 24,680,000 58,087,000 53,717,000
<OTHER-EXPENSES> 0 0 0 0
<LOSS-PROVISION> 0 0 0 0
<INTEREST-EXPENSE> 27,000 36,000 52,000 87,000
<INCOME-PRETAX> 310,000 (1,359,000) 1,287,000 (1,861,000)
<INCOME-TAX> 82,000 108,000 180,000 232,000
<INCOME-CONTINUING> 228,000 (1,467,000) 1,107,000 (2,093,000)
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 228,000 (1,467,000) 1,107,000 (2,093,000)
<EPS-BASIC> .04 (.26) .19 (.37)
<EPS-DILUTED> .03 (.26) .15 (.37)
</TABLE>
