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 September 30, 1995
OR
[ ] 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: 0-16002
ADVANCED MARKETING SERVICES, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 95-3768341
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
5880 Oberlin Drive, Suite 400
San Diego, California 92121
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number: (619) 457-2500
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
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
The number of shares of the Registrant's Common Stock outstanding
as of October 31, 1995 was 5,410,179.
ADVANCED MARKETING SERVICES, INC.
Quarterly Report on Form 10-Q
September 30, 1995
INDEX
Page
Number
PART I. FINANCIAL INFORMATION
Item 1. CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Balance Sheets
September 30, 1995 (Unaudited), March 31, 1995 and
October 1, 1994 (Unaudited) 3 - 4
Consolidated Statements of Income (Unaudited)
Three months and six months ended September 30, 1995
and October 1, 1994 5
Consolidated Statements of Cash Flows (Unaudited)
Six months ended September 30, 1995 and
October 1, 1994 6
Notes to Consolidated Financial Statements 7 - 9
Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 10 - 11
PART II. OTHER INFORMATION 12
SIGNATURES 12
Page 2 of 12
PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (See Note 1 for basis of presentation)
ADVANCED MARKETING SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
ASSETS
<TABLE>
<CAPTION>
AS OF
SEPT 30, MARCH 31, OCT 1,
1995 1995 1994
(UNAUDITED) (UNAUDITED)
CURRENT ASSETS: (IN THOUSANDS, EXCEPT SHARE DATA)
<S> <C> <C> <C>
CASH AND CASH EQUIVALENTS $ 3,099 $ 9,035 $ 2,018
INVESTMENTS, AVAILABLE-FOR-SALE 11,960 9,153 8,836
ACCOUNTS RECEIVABLE - TRADE, NET OF
ALLOWANCES FOR UNCOLLECTIBLE
ACCOUNTS AND SALES RETURNS OF
$3,142,000 AT SEPTEMBER 30, 1995,
$2,532,000 AT MARCH 31, 1995 AND
$2,109,000 AT OCTOBER 1, 1994 63,572 36,997 48,203
VENDOR AND OTHER RECEIVABLES 1,110 1,657 2,698
INVENTORIES, NET 111,419 69,356 85,457
DEFERRED INCOME TAXES 3,562 3,111 2,787
PREPAID EXPENSES 586 310 419
TOTAL CURRENT ASSETS 195,308 129,619 150,418
PROPERTY AND EQUIPMENT, AT COST 6,613 6,335 6,925
LESS - ACCUMULATED DEPRECIATION
AND AMORTIZATION 4,472 4,020 4,362
NET PROPERTY AND EQUIPMENT 2,141 2,315 2,563
INVESTMENTS, AVAILABLE-FOR-SALE -- 1,012 1,013
OTHER ASSETS 191 185 370
TOTAL ASSETS $ 197,640 $ 133,131 $ 154,364
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED BALANCE SHEETS
Page 3 of 12
ADVANCED MARKETING SERVICES, INC.
CONSOLIDATED BALANCE SHEETS
LIABILITIES AND STOCKHOLDERS' EQUITY
<TABLE>
<CAPTION>
AS OF
SEPT 30, MARCH 31, OCT 1,
1995 1995 1994
(UNAUDITED) (UNAUDITED)
CURRENT LIABILITIES: (IN THOUSANDS, EXCEPT SHARE DATA)
<S> <C> <C> <C>
ACCOUNTS PAYABLE $ 146,303 $ 85,236 $ 107,731
ACCRUED LIABILITIES 3,434 2,956 3,706
INCOME TAXES PAYABLE 963 602 313
TOTAL CURRENT LIABILITIES 150,700 88,794 111,750
STOCKHOLDERS' EQUITY:
COMMON STOCK, $.001 PAR VALUE,
AUTHORIZED 20,000,000 SHARES,
ISSUED 6,117,000 SHARES AT
SEPTEMBER 30, 1995, 6,103,000
SHARES AT MARCH 31, 1995 AND
5,938,000 SHARES AT OCTOBER
1, 1994 6 6 6
ADDITIONAL PAID-IN CAPITAL 25,585 25,519 24,887
RETAINED EARNINGS 23,531 21,012 18,880
UNREALIZED LOSS ON INVESTMENTS (28) (46) (279)
FOREIGN CURRENCY TRANSLATION
ADJUSTMENT (124) (124) --
LESS: TREASURY STOCK, 708,000
SHARES AT SEPTEMBER 30, 1995
AND MARCH 31, 1995 AND 497,000
SHARES AT OCTOBER 1, 1994,
AT COST (2,030) (2,030) (880)
TOTAL STOCKHOLDERS' EQUITY 46,940 44,337 42,614
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY $ 197,640 $ 133,131 $ 154,364
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED BALANCE SHEETS
Page 4 of 12
ADVANCED MARKETING SERVICES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
SEPT 30, OCT 1, SEPT 30, OCT 1,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
NET SALES $ 90,318 $ 76,653 $166,358 $153,469
COST OF GOODS SOLD 81,604 69,962 150,243 140,015
GROSS PROFIT 8,714 6,691 16,115 13,454
DISTRIBUTION AND
ADMINISTRATIVE EXPENSES 6,179 6,016 12,637 11,946
INCOME FROM OPERATIONS 2,535 675 3,478 1,508
INTEREST EXPENSE -- (16) -- (29)
INTEREST AND DIVIDEND
INCOME 304 294 589 566
INCOME BEFORE PROVISION
FOR INCOME TAXES 2,839 953 4,067 2,045
PROVISION FOR INCOME
TAXES 1,074 378 1,548 815
NET INCOME $ 1,765 $ 575 $ 2,519 $ 1,230
NET INCOME PER COMMON AND
COMMON SHARE EQUIVALENT:
PRIMARY $ .32 $ .10 $ .45 $ .22
FULLY DILUTED $ .32 $ .10 $ .45 $ .22
WEIGHTED AVERAGE NUMBER OF
SHARES:
PRIMARY 5,568 5,622 5,545 5,593
FULLY DILUTED 5,591 5,655 5,590 5,649
</TABLE>
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED STATEMENTS
Page 5 of 12
ADVANCED MARKETING SERVICES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
SIX MONTHS ENDED
SEPT 30, OCT 1,
1995 1994
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
NET INCOME $ 2,519 $ 1,230
ADJUSTMENTS TO RECONCILE NET INCOME TO
NET CASH USED IN OPERATING ACTIVITIES:
DEPRECIATION AND AMORTIZATION 460 446
PROVISION FOR UNCOLLECTIBLE ACCOUNTS
AND SALES RETURNS 682 276
PROVISION FOR MARKDOWN OF INVENTORY 1,052 1,115
DEFERRED INCOME TAXES (451) (166)
CHANGES IN ASSETS AND LIABILITIES:
INCREASE IN ACCOUNTS RECEIVABLE-TRADE (27,257) (25,158)
(INCREASE) DECREASE IN VENDOR AND
OTHER RECEIVABLES 547 (599)
INCREASE IN INVENTORIES (43,115) (24,121)
INCREASE IN ACCOUNTS PAYABLE 61,067 40,415
INCREASE IN ACCRUED LIABILITIES 478 539
INCREASE IN INCOME TAXES PAYABLE 361 21
INCREASE IN OTHER ASSETS (282) (1)
NET CASH USED IN OPERATING ACTIVITIES (3,939) (6,003)
CASH FLOWS FROM INVESTING ACTIVITIES:
PURCHASE/DISPOSAL OF PROPERTY AND
EQUIPMENT,NET (286) (834)
PURCHASE OF INVESTMENTS, AVAILABLE-FOR-SALE (17,035) (39,197)
SALE AND REDEMPTION OF INVESTMENTS,
AVAILABLE-FOR-SALE 15,258 45,088
NET CASH PROVIDED BY (USED IN)
INVESTING ACTIVITIES (2,063) 5,057
CASH FLOWS FROM FINANCING ACTIVITIES:
PROCEEDS FROM EXERCISE OF OPTIONS AND
RELATED TAX BENEFITS 66 36
NET CASH PROVIDED BY FINANCING ACTIVITIES 66 36
DECREASE IN CASH AND CASH EQUIVALENTS (5,936) (910)
CASH AND CASH EQUIVALENTS,
BEGINNING OF PERIOD 9,035 2,928
CASH AND CASH EQUIVALENTS,
END OF PERIOD $ 3,099 $ 2,018
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED STATEMENTS
</TABLE>
Page 6 of 12
ADVANCED MARKETING SERVICES, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
1. BASIS OF PRESENTATION
The financial statements presented herein as of and for the three and six
months ended September 30, 1995 and October 1, 1994 have been prepared
in accordance with generally accepted accounting principles and with
instructions to Form 10-Q. These financial statements have not been
examined by independent public accountants, but include all adjustments
(consisting of normal recurring adjustments) which are, in the opinion
of Management, necessary for a fair presentation of the financial
condition, results of operations and cash flows for such periods.
Certain reclassifications have been made to the financial statements of
the prior period to conform to the classifications used at September 30,
1995.
The accompanying consolidated financial statements include the accounts
of the Company and its wholly-owned subsidiaries. All significant
intercompany accounts and transactions have been eliminated.
Certain information and footnote disclosures normally included in
financial statements in accordance with generally accepted accounting
principles have been omitted pursuant to requirements of the Securities
and Exchange Commission. Management believes that the disclosures
included in the accompanying interim financial statements and footnotes
are adequate to make the information not misleading. For further
information, refer to the financial statements and notes thereto included
in the Company's Annual Report on Form 10-K for the fiscal year ended
March 31, 1995.
The results of operations for the three and six month periods ended
September 30, 1995 are not necessarily indicative of the results to be
expected for the fiscal year ending March 31, 1996. Net sales in the
Company's third fiscal quarter have historically been, and are expected
to be, significantly greater than in any other quarter of the fiscal year
due to increased demand during the holiday season.
2. INTERIM ACCOUNTING PERIODS
In accordance with wholesale distribution industry practice, net sales
and cost of goods sold for interim periods are cut off on the Saturday
nearest to the end of an accounting period. The cut-off for the fourth
fiscal quarter is March 31. This practice may result in differences in
the number of business days for which sales and cost of goods sold are
recorded both as to quarter-to-quarter comparisons, and as to comparisons
of quarters between years.
3. INVESTMENTS, AVAILABLE-FOR-SALE
"Investments, available-for-sale" consist principally of highly rated
corporate and municipal bonds, funds held in managed investment funds and
preferred stock instruments.
Page 7 of 12
The cost and estimated fair market value of investments at September 30,
1995 and October 1, 1994 are as follows (in thousands):
<TABLE>
<CAPTION>
September 30, 1995
Gross Gross
Amortized Unrealized Unrealized Approximate
Cost Gains Losses Market Value
<S> <C> <C> <C> <C>
Mortgage-Backed
Securities $ 2,582 $ - $ 33 $ 2,549
Debt Securities issued
by States of the U.S.
and political
subdivisions
of the States 9,406 5 - 9,411
$11,988 $ 5 $ 33 $11,960
</TABLE>
<TABLE>
<CAPTION> October 1, 1994
Gross Gross
Amortized Unrealized Unrealized Approximate
Cost Gains Losses Market Value
<S> <C> <C> <C> <C>
Mortgage-Backed
Securities $ 3,863 $ - $ 55 $ 3,808
Debt Securities issued
by States of the U.S.
and political
subdivisions
of the States 3,064 1 2 3,063
Equity Securities 3,201 248 471 2,978
$10,128 $ 249 $ 528 $ 9,849
</TABLE>
As of September 30, 1995, investments in debt securities issued by States
of the U.S. and political subdivisions of the States in the amount of
$9,411,000 are scheduled to mature within one year. As of September 30,
1995 the contractual principal repayments of mortgage-backed securities
ranged from 2 to 28 years. The actual time of repayment, however, may
be shorter due to prepayments made on the underlying collateral.
Proceeds from the sale of investments aggregated $2,050,000 for the
quarter ended September 30, 1995. There was no gain or loss realized on
these sales. There were no sales of investments in the quarter ended
October 1, 1994. The Company uses the specific identification method in
determining cost on these investments. The increase in unrealized loss
on investments was approximately $1,000 for the quarter ended September
30, 1995. The increase in unrealized loss on investments for the quarter
ended October 1, 1994 was approximately $99,000.
Proceeds from the sale of investments totalled $8,050,000 for the six
months ended September 30, 1995. There was no gain or loss realized on
these sales. Proceeds from sales of investments during the same period
of the previous year totalled $149,100 on which a loss of $3,330 was
Page 8 of 12
realized. The reduction in unrealized loss on investments was
approximately $18,000 for the six months ended September 30, 1995. In
the six months ended October 1, 1994, the increase in unrealized loss on
investments was approximately $279,000.
4. SALES RETURNS
In accordance with industry practice, a significant portion of the
Company's products are sold to customers with the right of return. The
Company has provided allowances of $1,867,000 as of September 30, 1995,
$1,593,000 as of March 31, 1995 and $1,213,000 as of October 1, 1994 for
the gross profit effect of estimated future sales returns.
5. INVENTORIES
Inventories consist primarily of books and prerecorded audio and video
cassettes purchased for resale and are stated at the lower of cost
(first-in, first-out) or market.
6. LINE OF CREDIT
The Company had available at September 30, 1995 an unsecured bank line
of credit with a maximum borrowing limit of $10 million. The interest
rate is at prime (8.75 percent at September 30, 1995). The line of credit
expires July 31, 1996. As of September 30, 1995 and October 1, 1994,
there were no outstanding borrowings on the line of credit.
7. INCOME TAXES
The Company provides currently for taxes on income regardless of when
such taxes are payable. Deferred income taxes result from temporary
differences in the recognition of income and expense for tax and
financial reporting purposes.
8. PER SHARE INFORMATION
Per share information is based on the weighted average number of common
shares and, when applicable, dilutive common share equivalents
outstanding during the periods. The effects of all anti-dilutive common
share equivalents are excluded from the calculation of earnings per
share. The Company's only potential dilutive common share equivalents
are stock options.
9. EMPLOYEE STOCK OPTION PLAN
Nonqualified options to purchase an aggregate of 481,110 shares of common
stock were outstanding as of September 30, 1995. The outstanding options
were at prices ranging from $1.70 to $5.42 per share.
Page 9 of 12
ITEM 2.MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
A. RESULTS OF OPERATIONS
Six Month Periods Ended September 30, 1995 and October 1, 1994:
During the six months ended September 30, 1995, the Company reported net
income of $2,519,000, or $.45 per share, compared with net income of
$1,230,000, or $.22 per share, for the first six months of the prior year.
Net sales for the first six months of fiscal 1996 increased eight percent
to $166,358,000 from $153,469,000 in the same period of the prior year.
This increase was entirely attributable to the quarter ended September 30,
1995 and was due primarily to (1) the Company being designated, effective
June 1995, as primary book supplier to 65 additional Sam's Club locations
and (2) an increase in the extent of the Company's participation in the
book programs of Sam's Club and certain other customers beginning in August
1995, in part as a result of a competitor filing for bankruptcy protection.
During the first six months of fiscal 1996, gross profits increased 20
percent to $16,115,000 from $13,454,000 in the first six months of the
previous fiscal year. Gross profit as a percentage of net sales increased
to 9.7 percent from 8.8 percent in the same period last year. This
increase resulted from improved margins in several book categories and
lower freight costs which were offset in part by lower income from
publisher incentive plans.
Distribution and administrative expenses for the six months ended September
30, 1995 increased six percent to $12,637,000 and represented 7.6 percent
of net sales compared to $11,946,000, or 7.8 percent of net sales, in the
same period of the previous year. Outbound freight expenses increased as
a result of higher shipments. Distribution center labor decreased as a
percent of sales due in part to increased efficiency. Administrative
expenses increased as a result of the Company's activities to expand its
customer base. These increases were partially offset by increased earnings
from publisher promotional programs.
The Company incurred no interest expense in the six months ended September
30, 1995 while interest expense consisting of costs related to the
Company's line of credit totalled $29,000 in the six months ended October
1, 1994. Interest and dividend income increased to $589,000 in the period
from $566,000 in the corresponding period of the previous year. This
increase was the result of higher yields.
Three Month Periods Ended September 30, 1995 and October 1, 1994:
During the three months ended September 30, 1995, the Company reported net
income of $1,765,000, or $.32 per share, compared with a net income of
$575,000, or $.10 per share, for the corresponding quarter of the previous
year.
Net sales for the quarter increased 18 percent to $90,318,000 compared to
$76,653,000 in the previous year's second quarter. The increase in net
sales was due primarily to (1) the Company being designated, effective June
1995, as primary book supplier to 65 additional Sam's Club locations and
(2) an increase in the extent of the Company's participation in the book
programs of Sam's Club and certain other customers beginning in August
1995, in part as a result of a competitor filing for bankruptcy protection.
During the quarter ended September 30, 1995, gross profits increased 30
percent to $8,714,000 from $6,691,000 in the second quarter of the previous
fiscal year. Gross profit as a percentage of net sales increased to 9.6
Page 10 of 12
percent from 8.7 percent in the same period last year. This increase
resulted from improved margins in several book categories and lower freight
costs which were offset in part by lower income from publisher incentive
plans.
Distribution and administrative expenses for the quarter ended September
30, 1995 increased three percent to $6,179,000 and represented 6.8 percent
of net sales compared to $6,016,000, or 7.8 percent of net sales, in the
same quarter of the previous year. Distribution center labor decreased
primarily as a result of increased efficiency. Administrative expenses
increased as a result of the Company's activities to expand its customer
base. This increase was partially offset by increased earnings from
publisher promotional programs.
The Company incurred no interest expense in the three months ended
September 30, 1995 while interest expense consisting of costs related to
the Company's line of credit totalled $16,000 in the three months ended
October 1, 1994. Interest and dividend income increased to $304,000 in the
period from $294,000 in the corresponding period of the previous year.
This increase was the result of higher yields.
B. LIQUIDITY AND SOURCES OF CAPITAL
For the six months ended September 30, 1995, $3,939,000 of net cash was
used in operating activities. Net cash used in operating activities in the
same period of the prior year was $6,003,000. Trade accounts receivable
increased $15,369,000 compared to one year ago primarily due to increased
sales in the month of September 1995. Trade accounts receivable increased
$26,575,000 compared to March 31, 1995 due to the reason noted above as
well as a seasonal upturn in sales. Inventories increased $25,962,000
compared to October 1, 1994 to support expected future increases in sales
and as a result of certain products not shipping as originally anticipated
to certain customers prior to September 30, 1995. Inventories increased
$42,063,000 compared to March 31, 1995 due to the reasons noted previously
and the expected seasonal increase in sales. The increase in inventories
was more than offset by increases in accounts payable of $38,572,000 and
$61,067,000 compared to October 1, 1994 and March 31, 1995, respectively.
The use of funds in operating activities was financed primarily by a
reduction in cash balances of $5,936,000 in the six month period ended
September 30, 1995 and through a reduction in investments of $5,891,000 and
a reduction in cash balances of $910,000 in the six month period ended
October 1, 1994.
Working capital was $44,608,000 as of September 30, 1995 which increased
from the October 1, 1994 level of $38,668,000 and from the March 31, 1995
balance of $40,825,000. The increase compared to March 31, 1995 and
October 1, 1994 was primarily a result of increases in net operating
current assets and sales of certain long-term investments.
The Company had available at September 30, 1995 an unsecured bank line of
credit with a maximum borrowing limit of $10 million. The interest rate is
at prime (8.75 percent at September 30, 1995). The line of credit expires
July 31, 1996. As of September 30, 1995 and October 1, 1994, there were no
outstanding borrowings on the line of credit.
The Company believes that its existing working capital, cash flows from
operations, trade credit traditionally available from its vendors and its
$10 million line of credit will be sufficient to finance its current and
anticipated level of operations.
Page 11 of 12
PART II. OTHER INFORMATION
ITEMS 1-4. NOT APPLICABLE
ITEM 5. OTHER INFORMATION - NONE
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits
11.0 Statement re Computation of Per Share Earnings
27.0 Financial Data Schedule
(b) Reports on Form 8-K - None
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
ADVANCED MARKETING SERVICES, INC.
(Registrant)
November 14, 1995 By: /s/ Charles C. Tillinghast, III
Date Charles C. Tillinghast, III
Chief Executive Officer, Chairman
of the Board (Principal
Executive Officer)
November 14, 1995 By: /s/ Jonathan S. Fish
Date Jonathan S. Fish
Chief Financial and
Accounting Officer, Executive
Vice President - Finance
(Principal Financial and
Accounting Officer)
Page 12 of 12
Exhibit 11.0
ADVANCED MARKETING SERVICES, INC.
STATEMENT RE COMPUTATION OF PER SHARE EARNINGS
(UNAUDITED)
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED SIX MONTHS ENDED
SEPT 30, OCT 1, SEPT 30, OCT 1,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
NET INCOME $1,765 $ 575 $2,519 $1,230
WEIGHTED AVERAGE COMMON AND COMMON
SHARE EQUIVALENTS:
WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING 5,410 5,440 5,404 5,438
WEIGHTED AVERAGE COMMON SHARE
EQUIVALENTS-DILUTIVE STOCK
OPTIONS:
PRIMARY 158 182 141 155
FULLY DILUTED 181 215 186 211
TOTAL WEIGHTED AVERAGE COMMON AND
COMMON EQUIVALENT SHARES:
PRIMARY 5,568 5,622 5,545 5,593
FULLY DILUTED 5,591 5,655 5,590 5,649
NET INCOME PER COMMON AND
COMMON SHARE EQUIVALENT
PRIMARY $ .32 $ .10 $ .45 $ .22
FULLY DILUTED $ .32 $ .10 $ .45 $ .22
</TABLE>
Common share equivalents (for AMS outstanding stock options) are excluded
from earnings per share calculations when antidilutive.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
COMPANY'S CONSOLIDATED FINANCIAL STATEMENTS OF INCOME AND CONSOLIDATED
BALANCE SHEETS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-MOS 6-MOS
<FISCAL-YEAR-END> MAR-31-1996 MAR-31-1996
<PERIOD-END> SEP-30-1995 SEP-30-1995
<CASH> 3,099 3,099
<SECURITIES> 11,960 11,960
<RECEIVABLES> 64,682 64,682
<ALLOWANCES> 3,142 3,142
<INVENTORY> 111,419 111,419
<CURRENT-ASSETS> 195,308 195,308
<PP&E> 6,613 6,613
<DEPRECIATION> 4,472 4,472
<TOTAL-ASSETS> 197,640 197,640
<CURRENT-LIABILITIES> 150,700 150,700
<BONDS> 0 0
<COMMON> 6 6
0 0
0 0
<OTHER-SE> 46,934 46,934
<TOTAL-LIABILITY-AND-EQUITY> 197,640 197,640
<SALES> 90,318 166,358
<TOTAL-REVENUES> 90,318 166,358
<CGS> 81,604 150,243
<TOTAL-COSTS> 81,604 150,243
<OTHER-EXPENSES> 6,179 12,637
<LOSS-PROVISION> 303 408
<INTEREST-EXPENSE> 0 0
<INCOME-PRETAX> 2,839 4,067
<INCOME-TAX> 1,074 1,548
<INCOME-CONTINUING> 1,765 2,519
<DISCONTINUED> 0 0
<EXTRAORDINARY> 0 0
<CHANGES> 0 0
<NET-INCOME> 1,765 2,519
<EPS-PRIMARY> .32 .45
<EPS-DILUTED> .32 .45
</TABLE>
