<PAGE> 1
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 SEPTEMBER 30, 1997
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 0-21878
CYRK, INC.
(Exact name of Registrant as specified in its charter)
DELAWARE 04-3081657
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3 POND ROAD, GLOUCESTER, MASSACHUSETTS 01930
(Address of principal executive offices)
(Zip Code)
(508) 283-5800
(Registrant's telephone number, including area code)
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
At October 31, 1997, 13,682,457 shares of the Registrant's common stock were
outstanding.
<PAGE> 2
CYRK, INC.
FORM 10-Q
TABLE OF CONTENTS
PART I FINANCIAL INFORMATION PAGE NUMBER
Item 1. Financial Statements (Unaudited)
Consolidated Balance Sheets -
September 30, 1997 and December 31, 1996 3
Consolidated Statements of Operations -
For the three and nine months ended
September 30, 1997 and 1996 4
Consolidated Statements of Cash Flows -
For the nine months ended September 30, 1997
and 1996 5
Notes to Consolidated Financial Statements 6-7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8-10
PART II OTHER INFORMATION
Item 1. Legal Proceedings 11
Item 6. Exhibits and Reports on Form 8-K 11
SIGNATURES 12
2
<PAGE> 3
PART I - FINANCIAL INFORMATION
CYRK, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share data)
<TABLE>
<CAPTION>
September 30, 1997 December 31, 1996
------------------ -----------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 36,937 $ 44,224
Investments -- 2,420
Accounts receivable:
Trade, less allowance for doubtful accounts of $3,695
at September 30, 1997 and $3,268 at December 31, 1996 103,703 59,046
Officers, stockholders and related parties 222 3,466
Inventories 55,647 45,904
Prepaid expenses and other current assets 9,967 6,114
Deferred and refundable income taxes 6,626 6,186
--------- ---------
Total current assets 213,102 167,360
Property and equipment, net 15,023 10,407
Other assets 6,518 4,856
Excess of cost over net assets acquired, net 79,283 4,970
Advances to affiliates, net 519 2,646
--------- ---------
$ 314,445 $ 190,239
========= =========
LIABILITIES & STOCKHOLDERS' EQUITY
Current liabilities:
Short-term borrowings $ 28,374 $ 18,749
Obligations under capital leases, current portion 48 --
Accounts payable:
Trade 44,229 8,834
Affiliates 1,446 992
Accrued expenses and other current liabilities 68,288 36,514
--------- ---------
Total current liabilities 142,385 65,089
Long-term obligations 6,470 --
Obligations under capital leases, net of current portion 3,236 --
Deferred income taxes 2,538 803
--------- ---------
Total liabilities 154,629 65,892
--------- ---------
Commitments and contingencies
Stockholders' equity:
Preferred stock, $.01 par value; 1,000,000 shares authorized; none issued -- --
Common stock, $.01 par value; 50,000,000 shares authorized;
13,682,457 shares issued and outstanding at September 30, 1997
and 10,790,876 shares issued and outstanding at December 31, 1996 137 108
Additional paid-in capital 119,785 87,402
Retained earnings 40,364 37,373
Net unrealized loss on available-for-sale securities -- (56)
Cumulative translation adjustment (470) (480)
--------- ---------
Total stockholders' equity 159,816 124,347
--------- ---------
$ 314,445 $ 190,239
========= =========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
3
<PAGE> 4
CYRK, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except per share data)
<TABLE>
<CAPTION>
For the three months For the nine months
ended September 30, ended September 30,
----------------------- -----------------------
1997 1996 1997 1996
--------- --------- --------- ---------
<S> <C> <C> <C> <C>
Net sales $ 170,813 $ 55,556 $ 374,568 $ 164,801
Cost of sales:
Related parties 3,089 247 9,845 448
Other 136,390 46,931 296,651 138,377
--------- --------- --------- ---------
139,479 47,178 306,496 138,825
--------- --------- --------- ---------
Gross profit 31,334 8,378 68,072 25,976
--------- --------- --------- ---------
Selling, general and administrative expenses:
Goodwill amortization 828 -- 1,403 --
Related parties 308 222 868 565
Other 29,219 9,156 57,564 26,130
--------- --------- --------- ---------
30,355 9,378 59,835 26,695
--------- --------- --------- ---------
Operating income (loss) 979 (1,000) 8,237 (719)
Interest income (439) (700) (2,102) (2,006)
Interest expense 538 50 1,676 140
Equity in loss of affiliates 570 564 1,186 956
--------- --------- --------- ---------
Income (loss) before income taxes 310 (914) 7,477 191
Income tax provision (benefit) 186 (390) 4,486 65
--------- --------- --------- ---------
Net income (loss) $ 124 $ (524) $ 2,991 $ 126
========= ========= ========= =========
Earnings (loss) per share $ 0.01 $ (0.05) $ 0.24 $ 0.01
========= ========= ========= =========
Weighted average shares outstanding 13,717 10,773 12,319 10,918
========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
4
<PAGE> 5
CYRK, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
<TABLE>
<CAPTION>
For the nine months ended September 30,
---------------------------------------
1997 1996
-------- --------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 2,991 $ 126
Adjustments to reconcile net income to net
cash provided by (used in) operating activities:
Depreciation and amortization 4,305 2,051
Gain on sale of property and equipment (37) --
Realized loss on sale of investments 20 247
Provision for doubtful accounts 115 90
Equity in loss of affiliates 1,186 956
Increase (decrease) in cash from changes
in working capital items, net of acquisitions:
Accounts receivable 11,560 (23,308)
Inventories 10,909 (4,069)
Prepaid expenses and other current assets (1,965) 11
Refundable income taxes -- (114)
Accounts payable (24,074) 2,626
Accrued expenses and other current liabilities 2,161 10,855
-------- --------
Net cash provided by (used in) operating activities 7,171 (10,529)
-------- --------
Cash flows from investing activities:
Purchase of property and equipment (3,446) (2,062)
Proceeds from sale of property and equipment 203 --
Acquisitions, net of cash acquired * (16,581) --
Repayments from (advances to) affiliates 947 (1,850)
Purchase of investments (3,815) (36,742)
Proceeds from sale of investments 6,271 41,043
Acquisition of intangible assets (1,065) --
Other, net -- (912)
-------- --------
Net cash used in investing activities (17,486) (523)
-------- --------
Cash flows from financing activities:
Proceeds from short-term borrowings, net 2,231 --
Increase in capital lease obligations 252 --
Proceeds from issuance of common stock 412 419
-------- --------
Net cash provided by financing activities 2,895 419
-------- --------
Effect of exchange rate changes on cash 133 --
-------- --------
Net decrease in cash and cash equivalents (7,287) (10,633)
Cash and cash equivalents, beginning of year 44,224 42,583
-------- --------
Cash and cash equivalents, end of period $ 36,937 $ 31,950
======== ========
* Details of acquisitions:
Fair value of assets acquired $103,796 $ --
Cost in excess of net assets of companies acquired, net 74,651 --
Liabilities assumed (108,097) --
Stock issued (32,000) --
-------- --------
Cash paid 38,350 --
Less: cash acquired (21,769) --
-------- --------
Net cash paid for acquisitions $ 16,581 $ --
======== ========
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest $ 1,333 $ 95
======== ========
Income taxes $ 4,191 $ 123
======== ========
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.
5
<PAGE> 6
CYRK, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. The accompanying unaudited financial statements have been prepared by the
Company pursuant to the rules and regulations of the Securities and Exchange
Commission regarding interim financial reporting. Accordingly, they do not
include all of the information and footnotes in accordance with generally
accepted accounting principles for complete financial statements and should
be read in conjunction with the audited financial statements included in the
Company's Annual Report on Form 10-K for the year ended December 31, 1996 and
the audited financial statements of Simon Marketing, Inc. ("Simon") and
Subsidiaries for the year ended November 30, 1996 which were included with
the Company's Report on Form 8-K/A dated June 9, 1997 filed in connection
with the Company's acquisition of Simon (described in Note 4 below). In the
opinion of management, the accompanying unaudited financial statements
contain all adjustments, consisting only of those of a normal recurring
nature, necessary for a fair presentation of the Company's financial
position, results of operations and cash flows at the dates and for the
periods presented.
The operating results for the nine months ended September 30, 1997 are not
necessarily indicative of the results to be expected for the full year.
Certain prior period amounts have been reclassified to conform with the
current period presentation.
2. Inventories consist of the following (in thousands):
<TABLE>
<CAPTION>
September 30, 1997 December 31, 1996
------------------ -----------------
<S> <C> <C>
Raw materials $ 12,457 $ 12,009
Work in process 12,806 --
Finished goods 30,384 33,895
-------- --------
$ 55,647 $ 45,904
======== ========
</TABLE>
3. At September 30, 1997, the Company was contingently liable for letters of
credit used to finance the purchase of inventory in the aggregate amount of
$10.7 million. Such letters of credit expire at various dates through
December 1997.
4. On June 9, 1997, the Company acquired all of the capital stock of Simon, a
Los Angeles based global promotion agency and provider of custom promotional
products, for $58.0 million, composed of $33.5 million in cash and $24.5
million in shares of the Company's common stock. $28.4 million in cash and
$20.0 million in shares of the Company's common stock (1,840,138 shares) was
paid at the closing with an additional $5.1 million in cash and $4.5 million
in shares of the Company's common stock to be paid within four years of the
closing. If certain performance targets are achieved, an additional $5.0
million in shares of the Company's common stock may be paid to former Simon
stockholders. The acquisition has been accounted for as a purchase and,
accordingly, the results of operations of Simon have been included in the
consolidated financial statements from the date of the acquisition. The
excess of cost over the fair value of net assets acquired ($55.3 million) is
being amortized on a straight-line basis over 30 years.
On April 7, 1997, the Company acquired Tonkin, Inc. ("Tonkin"), a Washington
corporation which provides custom promotional programs and licensed
promotional products, for $12 million in shares of the Company's common stock
and $10 million in cash. The purchase price may be increased by an additional
$2.7 million over the next three years if certain performance targets are
achieved by Tonkin. The acquisition has been accounted for as a purchase and,
accordingly, the results of operations of Tonkin have been included in the
consolidated financial statements from the date of the acquisition. The
excess of cost over the fair value of net assets acquired ($19.3 million) is
being amortized on a straight-line basis over 20 years.
6
<PAGE> 7
The following unaudited pro forma results of operations assume the Simon and
Tonkin acquisitions occurred on January 1, 1996 and include certain
adjustments related to the acquisitions such as: goodwill amortization
expense, reduction of interest income, non-recurring compensation related
transaction adjustments, one-time transaction costs, the related income tax
effect of combining the acquired companies and the issuance of all applicable
Company common stock (in thousands, except per share amounts):
<TABLE>
<CAPTION>
For the Nine For the Nine
Months Ended Months Ended
September 30, 1997 September 30, 1996
------------------ ------------------
<S> <C> <C>
Net sales $594,237 $464,141
Net income 6,009 4,888
Earnings per share $ 0.43 $ 0.34
</TABLE>
The pro forma results are not necessarily indicative of the operating results
that would have occurred had the Simon and Tonkin acquisitions occurred on
January 1, 1996, nor are they necessarily indicative of future operations.
5. In February 1997, Statement of Financial Accounting Standards No. 128,
"Earnings Per Share" ("SFAS 128") was issued. SFAS 128, which revises the
traditional computation, presentation and disclosure requirements for
earnings per share, is effective for financial statements issued for periods
ending after December 15, 1997. Adoption of SFAS 128 would not have a
material impact on the Company's reported earnings per share.
The Financial Accounting Standards Board recently issued Statement of
Financial Accounting Standards No. 130, "Reporting Comprehensive Income."
This Statement requires that changes in comprehensive income be shown in a
financial statement that is displayed with the same prominence as other
financial statements. The Statement will become effective for fiscal years
beginning after December 15, 1997. The Company will adopt the new standard
beginning in the first quarter of the fiscal year ending December 31, 1998.
In June 1997, the Financial Accounting Standards Board issued Statement of
Financial Accounting Standards No. 131, "Disclosures about Segments of an
Enterprise and Related Information" ("SFAS 131"). SFAS 131 specifies new
guidelines for determining a company's operating segments and related
requirements for disclosure. The Company is in the process of evaluating the
impact of the new standard on the presentation of the financial statements
and the disclosures therein. The Statement will become effective for fiscal
years beginning after December 15, 1997. The Company will adopt the new
standard for the fiscal year ending December 31, 1998.
7
<PAGE> 8
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
The following is a discussion of the financial condition and results of
operations of the Company for the three and nine month periods ended September
30, 1997 as compared to the same periods in the previous year. This discussion
should be read in conjunction with the Consolidated Financial Statements of the
Company and related Notes included elsewhere in this Form 10-Q.
FORWARD-LOOKING STATEMENTS AND ASSOCIATED RISKS
From time to time, the Company may provide forward-looking information such as
forecasts of expected future performance or statements about the Company's plans
and objectives. These forward-looking statements are based largely on the
Company's expectations and are subject to a number or risks and uncertainties,
certain of which are beyond the Company's control. The Company wishes to caution
readers that actual results may differ materially from those expressed in any
forward-looking statements made by, or on behalf of, the Company as a result of
factors described in the Company's Amended Cautionary Statement for Purposes of
the "Safe Harbor" Provisions of the Private Securities Litigation Reform Act of
1995, filed as Exhibit 99.2 to the Company's Report on Form 8-K/A filed on July
23, 1997, which is incorporated herein by reference.
GENERAL
The Company is a full service, integrated provider of marketing and promotional
products and services. As such, the Company generates revenue from the sale of
promotional products and the development of marketing programs. The majority of
the Company's revenue is derived from the sale of promotional products to
consumer product companies seeking to promote their brands and build customer
loyalty.
Historically, the Company's business has been heavily concentrated with its two
largest customers, Pepsi-Cola Company ("Pepsi") and Philip Morris Incorporated
("Philip Morris"). Purchases of promotional products by Pepsi and Philip Morris
in 1996 accounted for 38% and 30% of net sales, respectively. Net sales to Pepsi
and Philip Morris accounted for 28% and 21%, respectively, of total net sales in
the first nine months of 1997.
As a part of its continuing effort to diversify its customer base and broaden
its capability, the Company, during the second quarter of 1997, completed the
acquisition of two providers of promotional services and products. These
transactions were completed through mergers of these providers with and into
wholly-owned subsidiaries of the Company. On April 7, 1997, the Company acquired
Tonkin, Inc. ("Tonkin"), a Woodinville, Washington provider of custom
promotional programs and licensed promotional products. On June 9, 1997, the
Company acquired Simon Marketing, Inc. ("Simon"), a Los Angeles based global
promotion agency and provider of custom promotional products. Simon's business
is heavily concentrated with McDonald's Corporation ("McDonald's"). Net sales to
McDonald's accounted for 27% of the Company's total net sales for the nine month
period ended September 30, 1997.
The Company expects that a significant percentage of its net sales for the
remainder of 1997 will be to McDonald's, Philip Morris and Pepsi. The Company's
business with these customers (as well as other promotional customers) is based
upon purchase orders placed from time to time during the course of promotions.
There are no written agreements which commit these customers to make a certain
level of purchases. The actual level of purchases by McDonald's, Philip Morris
and Pepsi (and other promotional products customers) depends on a number of
factors, including the timing and duration of the promotion and consumer
redemption rates. Consequently, the Company's level of net sales is difficult to
predict accurately and can fluctuate greatly from quarter to quarter.
The Company's agreement with Pepsi in support of the "Pepsi Stuff" promotions
provides for negotiated gross margins at various volume levels. The current
"Pepsi Stuff" program expired on September 8, 1997 and the Company's agreement
with Pepsi is scheduled to expire at the end of 1997. The Company expects sales
to Pepsi in the fourth quarter of 1997 to be less than the volume levels
reported in the prior quarters of the current year and to be substantially less
than the fourth quarter of a year ago. The Company further expects sales to
Pepsi in 1998 to be substantially less than the 1997 volume.
Philip Morris solicits competitive bids for its promotional programs. The
Company's profit margin depends, to a great extent, on its competitive position
when bidding and its ability to manage its costs after being awarded bids.
Increased competition is expected to continue and may adversely impact the
Company's profit margin on Philip Morris promotions in the future. Recent
negotiations between state attorneys general and certain tobacco companies,
including Philip Morris, as well as proposed federal regulations, would result
in a ban on promotional programs relating to tobacco products and would have a
material adverse effect on the Company's business with Philip Morris and its
results of operations.
At September 30, 1997, the Company had written purchase orders for $240.0
million as compared to $81.1 million at September 30, 1996. This increase is due
to acquired companies. The Company's purchase orders are generally subject to
cancellation with limited penalty and are therefore not necessarily indicative
of future revenues or earnings.
8
<PAGE> 9
RESULTS OF OPERATIONS
THREE MONTHS ENDED SEPTEMBER 30, 1997 COMPARED TO THREE MONTHS ENDED SEPTEMBER
30, 1996
Net sales for the third quarter ended September 30, 1997 totaled $170.8 million
as compared to $55.6 million in the third quarter of 1996. The increase in net
sales of $115.2 million, or 207%, from the comparable period of a year ago, was
primarily attributable to revenues associated with acquired companies.
Promotional product sales in the third quarter of 1997 totaled $163.1 million,
or an increase of 260%, as compared to $45.3 million in the third quarter of
1996. Net sales related to the Company's private label and Cyrk brand business
in the third quarter of 1997 totaled $7.7 million, or a decrease of 25%, as
compared to $10.3 million in the third quarter of 1996 as a result of an overall
softer retail apparel market.
Gross profit increased $23.0 million, or 274%, to $31.3 million in the third
quarter of 1997 from $8.4 million in the third quarter of 1996. As a percentage
of net sales, the third quarter gross profit increased to 18.3% in 1997 from
15.1% in 1996. This increase was due principally to more favorable margins
associated with the Company's increased sales mix in certain industry segments
characterized by higher gross margins.
Selling, general and administrative expenses increased $21.0 million, or 224%,
to $30.4 million in 1997 from $9.4 million in the third quarter of 1996, and
increased as a percentage of net sales to 17.8% in the third quarter of 1997
from 16.9% in the third quarter of 1996. The Company's increased spending was
primarily attributable to its expanded global sales and operations.
Equity in loss of affiliates represents the Company's proportionate share of
investments being accounted for under the equity method.
The effective tax rates for the third quarter of 1997 and 1996 were 60% and 43%,
respectively. The Company currently expects its effective tax rate will be
approximately 60% in 1997 due to certain book-tax differences, primarily
non-utilization of losses in certain foreign subsidiaries and non-deductible
amortization of goodwill generated as result of the Company's recent
acquisitions.
NINE MONTHS ENDED SEPTEMBER 30, 1997 COMPARED TO NINE MONTHS ENDED SEPTEMBER 30,
1996
Net sales for the first nine months of 1997 totaled $374.6 million as compared
to $164.8 million in the first nine months of 1996. The increase in net sales of
$209.8 million, or 127%, from the comparable period of a year ago, was directly
attributable to revenues associated with acquired companies. Promotional product
sales in the first nine months of 1997 totaled $346.2 million, or an increase of
175%, as compared to $125.7 million in the first nine months of 1996. Net sales
related to the Company's private label and Cyrk brand business in the first nine
months of 1997 totaled $28.4 million, or a decrease of 27%, as compared to $39.1
million in the first nine months of 1996 as a result of an overall softer retail
apparel market.
Gross profit increased $42.1 million, or 162%, to $68.1 million in the first
nine months of 1997 from $26.0 million in the first nine months of 1996. As a
percentage of net sales, gross profit increased to 18.2% in 1997 from 15.8% in
1996. This increase was due principally to more favorable margins associated
with certain promotional programs and the Company's increased sales mix in
industry segments characterized by higher gross margins.
Selling, general and administrative expenses increased $33.1 million, or 124%,
to $59.8 million in the first nine months of 1997 from $26.7 million in the
first nine months of 1996, but decreased as a percentage of net sales to 16.0%
in the first nine months of 1997 from 16.2% in the first nine months of 1996.
The Company's increased spending was primarily attributable to its expanded
global sales and operations. The decrease in selling, general and administrative
expenses as a percentage of net sales was attributable to the comparative
increase in year to date net sales.
Equity in loss of affiliates represents the Company's proportionate share of
investments being accounted for under the equity method.
9
<PAGE> 10
LIQUIDITY AND CAPITAL RESOURCES
Working capital at September 30, 1997 was $70.7 million compared to $102.3
million at December 31, 1996. This decrease in working capital of $31.6 million
was primarily attributable to the Simon and Tonkin acquisitions. Net cash
provided by operating activities during the first nine months of 1997 was $7.2
million, due principally to year to date earnings of $3.0 million and
depreciation and amortization expense of $4.3 million.
Net cash used in investing activities in the first nine months of 1997 was $17.5
million, which was primarily attributable to $16.6 million of net cash used to
acquire Tonkin and Simon in the second quarter of 1997. Net cash used in
investing activities in the first nine months of 1996 was $.5 million, which
included $2.1 million of additions to property and equipment, a $1.9 million
loan made to an affiliate and $4.3 million of net sales of investments.
Since inception, the Company has financed its working capital and capital
expenditure requirements through cash generated from operations, public sales of
common stock, bank borrowings and capital equipment leases. Such cash
requirements were provided principally by financing and investing activities for
1996, and principally by operating activities for 1997 to date.
Under an existing arrangement with a bank, the Company currently has available a
bank letter of credit and revolving credit facility which expires March 31,
1998. As of September 30, 1997, based on the borrowing base formula prescribed
by this credit facility, the Company's borrowing capacity was $75 million, of
which $11.7 million in letters of credit and $21.3 million of short-term
borrowings were outstanding. Borrowings under the facilities are collateralized
by all assets of the Company. In addition, the Company has a variety of domestic
and international credit facility arrangements related to its Simon and Tonkin
operations with a borrowing capacity of $25.5 million. At September 30, 1997,
$7.1 million was outstanding under all such arrangements. Substantially all of
Simon's and Tonkin's assets are pledged as collateral under these credit
facilities.
Management believes that the Company's existing cash position, credit
facilities, and its ability to obtain additional financing, combined with
internally generated cash flow, will be adequate for its liquidity and capital
needs at least through the end of 1997.
10
<PAGE> 11
PART II - OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
The Company is not a party to any material pending legal proceedings that have
not been previously reported, and during the quarter covered by this report
there have been no material developments in such reported legal proceedings.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits - None
(b) Reports on Form 8-K
The Company filed a Report on Form 8-K/A dated July 23, 1997 with respect
to the acquisition of Simon Marketing, Inc.
11
<PAGE> 12
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.
Date: November 12, 1997 CYRK, INC.
/s/Dominic F. Mammola
---------------------
Dominic F. Mammola
Vice President and Chief Financial Officer
(duly authorized officer and principal
financial and accounting officer)
12
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<CURRENCY> U.S. DOLLARS
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> SEP-30-1997
<EXCHANGE-RATE> 1
<CASH> 36,937
<SECURITIES> 0
<RECEIVABLES> 107,398
<ALLOWANCES> 3,695
<INVENTORY> 55,647
<CURRENT-ASSETS> 213,102
<PP&E> 29,568
<DEPRECIATION> 14,545
<TOTAL-ASSETS> 314,445
<CURRENT-LIABILITIES> 142,385
<BONDS> 0
0
0
<COMMON> 137
<OTHER-SE> 159,679
<TOTAL-LIABILITY-AND-EQUITY> 314,445
<SALES> 374,568
<TOTAL-REVENUES> 374,568
<CGS> 306,496
<TOTAL-COSTS> 306,496
<OTHER-EXPENSES> 1,186
<LOSS-PROVISION> 115
<INTEREST-EXPENSE> 1,676
<INCOME-PRETAX> 7,477
<INCOME-TAX> 4,486
<INCOME-CONTINUING> 2,991
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 2,991
<EPS-PRIMARY> .24
<EPS-DILUTED> .24
</TABLE>
