<PAGE>
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-QSB
(Mark one)
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
--- OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED DECEMBER 31, 1996
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 33-49854-A
INTILE DESIGNS, INC.
(Exact name of small business issuer as specified in its charter)
DELAWARE 13-3625325
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
9716 OLD KATY ROAD, SUITE 110
HOUSTON, TEXAS 77055
(Address of principal executive offices)
(713) 468-8400
(Issuer's telephone number, including area code)
Check whether the registrant (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 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
--- ---
State the number of shares outstanding of each of the issuer's classes of
common stock as of the latest practicable date: The total number of shares
of Common Stock, par value $.0001 per share, outstanding as of February 19,
1997 was 2,806,711.
Page 1 of 15
<PAGE>
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
The unaudited condensed consolidated financial statements of Intile Designs,
Inc. and subsidiaries (the Company) and related notes included herein have been
prepared by the Company, without audit, pursuant to the rules and regulations
of the Securities and Exchange Commission. Certain information and disclosures
normally included in financial statements prepared in accordance with generally
accepted accounting principles have been condensed or omitted pursuant to those
rules and regulations, although the Company believes that the disclosures
included herein are adequate to make the information presented not misleading.
In the opinion of the Company's management, all adjustments, which include only
normal recurring adjustments, necessary for a fair presentation of the
financial position and results of operations for the periods presented have
been included. These financial statements should be read in conjunction with
the financial statements and notes thereto included in the Company's
Form 10-KSB for the year ended March 31, 1996. Operating results for the nine-
month period ended December 31, 1996 are not necessarily indicative of the
results that may be expected for the year ending March 31, 1997.
Page 2 of 15
<PAGE>
INTILE DESIGNS, INC.
CONDENSED CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<TABLE>
December 31, March 31,
1996 1996
---- ----
<S> <C> <C>
Assets
------
Current assets:
Cash $ 166,984 $ 69,778
Accounts receivable, net of allowance for doubtful
accounts of $205,869 and $134,602 1,260,086 1,564,174
Inventory 8,446,475 8,447,237
Prepaid expenses and other assets 309,373 137,471
----------- -----------
Total current assets 10,182,918 10,218,660
Property and equipment, net 653,499 556,665
Other assets 442,741 216,256
----------- -----------
Total assets $11,279,158 $10,991,581
----------- -----------
----------- -----------
Liabilities and Stockholders' Equity
------------------------------------
Current liabilities:
Current portion of notes payable $ 4,971,455 $ 5,953,907
Accounts payable 2,907,045 3,163,884
Accrued expenses and other liabilities 414,945 281,658
----------- -----------
Total current liabilities 8,293,445 9,399,449
Noncurrent portion of notes payable 1,773,273 -
Other noncurrent liabilities 103,758 103,758
----------- -----------
Total liabilities 10,170,476 9,503,207
----------- -----------
Stockholders' equity:
Common stock, $.0001 par value, 10,000,000
shares authorized, 2,806,711 shares
issued and outstanding 281 280
Additional paid-in capital 4,722,767 4,717,700
Retained earnings (deficit) (3,614,366) (3,229,606)
----------- -----------
Total stockholders' equity 1,108,682 1,488,374
----------- -----------
Commitments and contingencies - -
Total liabilities and stockholders' equity $11,279,158 $10,991,581
----------- -----------
----------- -----------
</TABLE>
(The accompanying notes are an integral part of these financial statements)
Page 3 of 15
<PAGE>
INTILE DESIGNS, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
<TABLE>
Quarter Ended Three Quarters Ended
December 31, December 31,
------------- --------------------
1996 1995 1996 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Sales $ 3,543,476 $ 3,877,841 $ 12,918,854 $ 15,123,774
Cost of goods sold 2,268,736 2,441,256 7,617,936 9,225,516
---------- ----------- ----------- -----------
Gross profit 1,274,740 1,436,585 5,300,918 5,898,258
Selling and administrative
expenses 1,705,094 1,889,376 5,231,580 6,166,977
---------- ----------- ----------- -----------
Income (loss) from operations (430,354) (452,791) 69,338 (268,719)
Other income (expense):
Equity in losses of investee ---- (28,000) ---- (2,597,005)
Interest expense (201,722) (128,740) (480,594) (334,466)
Other income 20,906 ---- 26,496 2,340
---------- ----------- ----------- -----------
Loss before income taxes (611,170) (609,531) (384,760) (3,197,850)
Provision for income taxes - - - (80,000)
---------- ----------- ----------- -----------
Net loss (611,170) $ (609,531) $ (384,760) $ (3,117,850)
---------- ----------- ----------- -----------
---------- ----------- ----------- -----------
Earnings (Loss) per share $ (.22) $ (.22) $ (.14) $ (1.13)
---------- ----------- ----------- -----------
---------- ----------- ----------- -----------
Weighted average shares
outstanding 2,806,711 2,798,294 2,803,551 2,767,605
---------- ----------- ----------- -----------
---------- ----------- ----------- -----------
</TABLE>
(The accompanying notes are an integral part of these financial statements)
Page 4 of 15
<PAGE>
INTILE DESIGNS, INC.
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
FOR THE YEAR ENDED MARCH 31, 1996 AND THE THREE QUARTERS ENDED DECEMBER 31, 1996
(UNAUDITED)
<TABLE>
Shares Common Paid-in Retained
outstanding stock capital earnings (deficit) Total
----------- ------ ---------- ------------------ -----------
<S> <C> <C> <C> <C> <C>
Balance, March 31, 1995 2,746,129 $274 $4,695,980 $ 1,017,231 $ 5,713,485
Additional issuance costs relating to
issuance of common stock to acquire
TCM Holdings - - (68,644) - (68,644)
Exercise of stock options 35,239 4 56,688 - 56,692
Issuance of common stock 18,303 2 33,676 - 33,678
Net loss - - - (4,246,837) (4,246,837)
--------- ---- ---------- ----------- -----------
Balance, March 31, 1996 2,799,671 280 4,717,700 (3,229,606) 1,488,374
Issuance of common stock 7,040 1 5,067 - 5,068
Net income - - - (384,760) (384,760)
--------- ---- ---------- ----------- -----------
Balance, December 31, 1996 2,806,711 $281 $4,722,767 $(3,614,366) $ 1,108,682
--------- ---- ---------- ----------- -----------
--------- ---- ---------- ----------- -----------
</TABLE>
(The accompanying notes are an integral part of these financial statements.)
Page 5 of 15
<PAGE>
INTILE DESIGNS, INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
Three Quarters ended
December 31,
------------
1996 1995
---- ----
Cash flows from operating activities:-
Net loss $ (384,760) $ (3,117,850)
Adjustments:
Depreciation and amortization 149,843 138,698
Bad debt expense 101,521 98,982
Equity in loss of investee - 1,865,751
Changes in assets and liabilities (95,596) 464,457
----------- ------------
Net cash used by operating activities (228,992) (549,962)
----------- ------------
Cash flows from investing activities:
Purchase of equipment (214,105) (71,695)
Change in other assets and liabilities (259,057) (144,576)
----------- ------------
Net cash used by investing activities (473,162) (216,271)
----------- ------------
Cash flows from financing activities:
Proceeds from borrowings 1,923,219 648,346
Proceeds from sale of stock 5,068 21,725
Payments on debt (1,128,927) -
----------- ------------
Net cash provided by financing activities 799,360 670,071
----------- ------------
Net increase in cash and cash equivalents 97,206 (96,162)
Cash and cash equivalents:
Beginning of period 69,778 224,432
----------- ------------
End of period $ 166,984 $ 128,270
----------- ------------
----------- ------------
(The accompanying notes are an integral part of these financial statements)
Page 6 of 15
<PAGE>
INTILE DESIGNS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
DECEMBER 31, 1996
(UNAUDITED)
NOTE 1 - ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The Company is a direct importer and distributor of ceramic tile, marble and
related home design products. The Company also retails these items through
its various divisions and subsidiaries.
BASIS OF CONSOLIDATION
The consolidated financial statements include the accounts of Intile Designs,
Inc. and its wholly-owned subsidiaries, except those where control is deemed
to be temporary. All significant intercompany accounts and transactions have
been eliminated in consolidation.
Form 10-QSB previously filed for the nine months ended December 31, 1995
included TCM Holdings ("TCM") as a consolidated subsidiary. Form 10-QSB for
the current period ended December 31, 1996 includes the results of operations
of TCM on the equity basis since control is deemed to be temporary,
therefore, the financial statements for the nine months ended December 31,
1995 have also been restated to report TCM on the equity basis.
EARNINGS PER SHARE
Earnings per share is calculated using the weighted average number of common
and common equivalent shares outstanding, including stock options and
warrants which have a dilutive effect.
NOTE 2 - BUSINESS COMBINATIONS AND CLOSURE:
Effective November 2, 1994, the Company acquired substantially all of the
assets of International Tile & Supply Corp. ("International"). The Company,
through its wholly owned subsidiary, Intile Designs of Los Angeles, Inc.,
purchased the assets of International by payment of cash at closing of
$1,050,000 and the assumption of liabilities totaling $609,265.
Additionally, the Company agreed to pay to the allowed general unsecured
creditors of International an amount equal to 10% of the net profits
generated from the operations of the business acquired for a period of four
years after the closing, with the maximum payments in aggregate totaling
$100,000. The funding of the cash at closing was accomplished through a
private placement of debt totaling $1,000,000. The Company issued a $650,000
convertible subordinated note and a $350,000 short-
Page 7 of 15
<PAGE>
term bridge note to Retail Associates Management Company, L.P. ("RAMCO").
The transaction has been accounted for by the Company as a purchase and,
accordingly, results of International have been included in the statement of
income since November 2, 1994.
Due to recurring losses at International, its management closed all
operations, including the three retail operations, effective January 24,
1997. The Company anticipates recording a charge against earnings from the
closure of approximately $675,000 in the fourth quarter ending March 31,
1997. Although no determination has been made regarding the ultimate
settlement of outstanding amounts owed suppliers and others by International,
Management believes that International does not have sufficient assets to
satisfy its indebtedness to unsecured creditors.
Effective February 21, 1995, the Company acquired 100% of the common stock of
TCM Holdings Corporation (TCM). The Company acquired the stock of TCM from
Retail Associates Management Company, Inc. in exchange for 322,138 shares of
the Company's common stock. The agreement provides for 120,000 shares to be
placed in escrow for subsequent distribution after the final price adjustment
is determined in accordance with the provisions of the agreement. The
Company currently estimates that all of the shares in escrow will be returned
to the Company.
In conjunction with the acquisition of TCM, RAMCO converted its $650,000
convertible subordinated note into 100,000 shares of the Company's common
stock. The transaction has been accounted for by the Company as a purchase
and, accordingly, operating results of TCM have been included in the
accompanying statement of income since February 21, 1995.
Due to recurring losses at TCM, TCM's management closed the retail operations
effective August 3, 1995. The Company recorded a charge against earnings
from the closure of TCM of approximately $1,865,000 in the three quarters
ended December 31, 1995.
Prior to the Company's acquisition of TCM, TCM had confirmed a Chapter 11
Plan of Reorganization in December 1994. Pursuant to the terms of the plan,
all property was to vest in the reorganized entity emerging from bankruptcy.
The bankruptcy estate of TCM remains in existence until the case is closed.
In October 1995, the U.S. Trustee petitioned the bankruptcy court to convert
TCM's Chapter 11 to a Chapter 7 case of the U.S. Bankruptcy Code. On
November 7, 1995, the U.S. Bankruptcy Court District of Massachusetts,
Eastern Division ruled in favor of the motion, finding that there had been a
material default by TCM with respect to the confirmed Plan of Reorganization
and converted the case (#94-10762-WCH). A Chapter 7 Trustee was appointed by
the U.S. Trustee.
The Company believes that the liquidation value of the assets of TCM, as the
reorganized entity, will be less than the value of the recorded liens against
such assets, of which the Company is the primary lienholder. Accordingly,
the Company anticipates that the unsecured creditors under the confirmed
plan, or otherwise, will not receive any proceeds from the Chapter 7
liquidation. Management believes that, as a result of the liquidation, the
Company will recover some previously recognized losses since certain
liabilities which have been previously recorded are not anticipated to be
paid by TCM's bankruptcy estate. No amount of the anticipated recovery has
been included in the Company's financial statements.
Page 8 of 15
<PAGE>
Also, effective February 21, 1995, the Company acquired substantially all of
the assets of the Orlando showroom (Orlando) of P&M Tile Inc. (P&M). The
Company acquired Orlando by a cash payment of $140,114 at closing and
issuance of a noninterest-bearing note to P&M for $257,518 which was paid in
full during the year ended March 31, 1996.
The transaction has been accounted for by the Company as a purchase and,
accordingly, operating results of Orlando have been included in the
accompanying statement of income since February 21, 1995.
NOTE 3 - CAPITALIZATION:
On August 5, 1996, the Board of Directors recommended and a majority of
shareholders approved a one-for-two reverse stock split. Shareholders
received one new share of the Company's common stock for each two shares they
then held. All references and related calculations to shares in this Form
10-QSB have been adjusted to reflect the reverse split.
On August 13, 1996, the Company obtained 1) approval to complete the above
noted transactions and 2) a forbearance agreement from its primary lending
bank. The forbearance agreement, signed September 24, 1996, restructured the
covenants of which the Company was not in compliance, required the Company to
remit $1,000,000 to the bank from the proceeds of the below discussed
convertible subordinated debt, provides for additional borrowings up to
$300,000 for standby letters of credit, requires additional payments on
principal of $200,000 by December 1, 1996 and increases the interest rate to
2 1/2% above prime rate. The forbearance covers the term through the
maturity date of January 20, 1997. As of the date of this filing, the
forbearance has not been extended beyond the original expiration date and the
Company is in arrears on a portion of the accrued interest payments.
Management of the Company and the bank's lending officer's have been in
discussions to establish an orderly process of curing the Company's default
on this agreement. While no assurances can be given, management believes
that the satisfaction of this obligation will ultimately be accomplished.
On August 23, 1996, the Company, through a Placement Agent Agreement with
Coleman and Company Securities, Inc. (Coleman), sold to private investors
$1,600,000 of Notes of which Mr. C. William Cox, President of the Company,
purchased $100,000 of the Notes. These Notes which mature on July 31, 1999
are subordinated to the Company's line of credit with a bank, are convertible
into the Company's common stock and bear interest at twelve (12) percent for
the first six months. The interest rate increases two (2) percent each six
months up to a maximum of 18%. The conversion rights are exercisable at
$1.50 per share or 50% of any public offering price. Additionally, the
holders were issued warrants to purchase up to 800,000 shares of the
Company's common stock at $.25 per share and Coleman was issued warrants to
purchase up to 80,000 shares at the same price. Coleman received for its
services a fee of 10% of the proceeds of the placement and a non-accountable
expense reimbursement of 3% of the proceeds of the placement. Total costs of
the placement were approximately $223,000 and the Company netted proceeds in
the amount of $1,377,000. Ehud D. Laska, a former Director of the Company is
the Chairman of Coleman. Mr. Laska resigned as a Director effective January
20, 1997.
Page 9 of 15
<PAGE>
NOTE 4 - SUBSEQUENT EVENTS:
On January 31, 1997, the Company entered into a Placement Agent Agreement
with Coleman and Company Securities, Inc. ("Coleman"), to act as its
exclusive placement agent in connection with the "best efforts" sale by the
Company of up to 47 Units (the "Units") at a price of $50,000 per Unit. Each
Unit will consist of 150,000 shares of the Company's common stock, par value
$0.0001 per share. The use of the Placement proceeds will be determined by
agreement between the Company and Coleman. The Units will be offered by the
Company through Coleman until February 28, 1997, unless extended to March 28,
1997. Coleman will receive for its services a fee of 10% of the proceeds of
the placement and a non-accountable expense reimbursement of 3% of the
proceeds. As of the date of this filing, seven (7) Units have been sold and
the Company has received a portion of the proceeds in the amount of $304,500.
Mr. Ehud D. Laska, a former Director of the Company is the Chairman of
Coleman.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND
RESULTS OF OPERATIONS
The discussion which follows summarizes the Company's financial position at
December 31, 1996 and the results of its operations for the six-month period
then ended, and should be read in conjunction with the summarized financial
statements and notes thereto included elsewhere in this Form 10-QSB and the
financial statements, notes thereto and other financial data included in the
Company's Form 10-KSB for the year ended March 31, 1996.
GENERAL
Intile Designs, Inc. (the Company) is a direct importer, retailer and
distributor of ceramic tile, marble and related home design products.
Operating revenue is generated by the retail and wholesale sale of these
products. The Company has nine (9) showroom/warehouse facilities and three
(3) retail showrooms in seven states. The showrooms are located in Houston
(2), Dallas, Austin, The Woodlands, Webster and Corpus Christi, Texas;
Atlanta, Georgia; Orlando, Florida; Phoenix, Arizona; Anaheim, California and
Denver, Colorado.
The Company seeks to expand its operations through acquisitions of companies
with existing retail stores financed through an influx of capital from both
private and secondary equity markets.
BUSINESS COMBINATIONS
INTERNATIONAL TILE & SUPPLY CORPORATION: In November 1994, the Company
acquired substantially all of the assets of International Tile & Supply
(International), a 40 year old tile retailer located in Los Angeles,
California. The company paid approximately $1,350,000, which was the fair
value of the assets acquired. The acquisition was structured as a cash
purchase.
Due to recurring losses at International, its management closed all
operations, including the three retail operations, effective January 20,
1997. The Company anticipates recording a charge against earnings from the
closure of approximately $675,000 in the fourth quarter ending March 31,
1997. Although no determination has been made regarding the ultimate
settlement of outstanding amounts owed
Page 10 of 15
<PAGE>
suppliers and others by the Company, management believes that the Company
does not have sufficient assets to satisfy its indebtedness to unsecured
creditors.
TCM HOLDINGS CORPORATION: In February 1995, the Company acquired 100% of the
common stock of TCM Holdings Corporation, a Massachusetts corporation which
had been a debtor in possession in a bankruptcy filing in Massachusetts since
February 1994 until a plan was approved in December 1994.The Company acquired
the stock of TCM in exchange for 322,138 of the Company's common stock. Due
to recurring losses, the Company closed the retail operations of TCM in
August 1995.
LIQUIDITY AND CAPITAL RESOURCES
Effective January 1995, the Company negotiated a new line of credit with a
new bank which increased the Company's borrowing capacity to $6,000,000.
Other significant changes to the terms include removal of any ceiling on
inventory availability for the borrowing base and limitation of $1,000,000 on
the personal guaranty of C. William Cox. Under the existing agreement,
borrowings exceeded the borrowing base by approximately $271,104 at December
31, 1996, down from $952,000 at June 30, 1996. The Company obtained a
forbearance from the bank to relieve its non-monetary default of certain
covenants which allowed the Company to return to compliance under
restructured covenants (see Note 3). However, the forbearance has not been
extended beyond January 20, 1997, the original expiration date, and the
Company is in arrears of a portion of the accrued interest payments.
Management of the Company and the bank's lending officer's have been in
discussions to establish an orderly process of curing the Company's default
on this agreement. While no assurances can be given, management believes
that the satisfaction of this obligation will ultimately be accomplished.
Proceeds from the Placement Agent Agreement (see NOTE 4 - Subsequent Events)
has enabled the Company to maintain its payment schedule to meet vendor
obligations. Although the Company is not current with all of its vendors, it
continues to receive product in an orderly process and is able to meet
current demand. Funds obtained through the private placement of debt (see
Note 3) have helped alleviate problems with vendors. Standby letters of
credit have been issued on a limited basis. Management is continuing its
pursuit of additional financing from equity and debt sources and Management
believes that the proceeds from the Placement Agent Agreement, if successful,
will enable the Company to satisfy its indebtedness to vendors and increase
inventory in preparation of the first quarter, the start of the strongest
selling season. Although Management is optimistic, there is no assurance that
these efforts will be successful.
Borrowings under the line of credit with the primary lending bank remained
$4,780,000 at December 31, 1996. The company's cash position for the nine
month period ending December 31, 1996 increased $96,206. The increase is due
in part to net cash provided by financing activities of $799,360, offset by
cash used in operations of $228,992, which includes funds provided by the
reduction of accounts receivable of $160,874 offset by the reduction of
accounts payable of $127,023, and the purchase of fixed assets and the
increase of other assets of $473,162.
Page 11 of 15
<PAGE>
RESULTS OF OPERATIONS
The Company reported a net loss of $611,170 for the quarter ended December
31, 1996 as compared to a net loss of $609,531 for the comparable quarter of
the prior year. For the nine month period ending December 31, 1996, the
Company reported a loss of $384,760 as compared to a net loss of $3,117,850
for the comparable periods ending December 31, 1995 .
Sales decreased approximately 8.6% from $3,877,841 to $3,543,476 for the
three month period ending December 31, 1996 when compared to the same quarter
of the prior year, while cost of goods sold decreased 7.1% from $2,441,256 to
$2,268,736 for the same period. As a result, the Company's gross profit fell
during the current quarter 7.0% when compared to the prior comparable quarter
from $2,441,256 (37.0%) to $2,268,736 (36.0%).
For the nine month period ending December 31, 1996, sales decreased
approximately 14.6% from $15,123,774 to $12,918,854 when compared to the same
nine month period of the prior year, while cost of goods sold decreased 17.4%
from $9,225,516 to $7,617,936 for the same period. As a result, the
Company's gross profit fell during the period 10.1% when compared to the
prior comparable period from $5,898,258 (39.0%) to $5,300,918 (41.0%).
The decrease in revenues is primarily attributable to the continued softness
in the building construction industry in the West Region of the Company. The
decrease in gross profit is likewise attributable to the decrease in revenues
from the Company's West Region.
Selling and administrative expenses decreased approximately $184,282 (9.8%)
and $935,397 (15.2%) for the three month and nine month periods
respectively, ending December 31, 1996, when compared to the same period of
the prior year, primarily as a result of downsizing the International Tile
operation, consolidation of one Houston location into the central warehouse
and general reductions due to a smaller company with TCM closed and
International Tile downsized.
Income from operations increased to a loss of $430,354 from $452,791 and
increased to a profit of $69,338 from a loss of $268,719 for the quarter and
three quarters ending December 31, 1996, respectively, as related to the
comparable periods of the prior year. These improvements were due in part to
the reductions of payroll and related costs of $143,017 and $673,564 in the
respective periods offsetting the reduced gross profit from lower revenues.
Page 12 of 15
<PAGE>
PART II - OTHER INFORMATION
ITEM 5. OTHER INFORMATION
Mr. Ehud D. Laska resigned as a Director of the Company effective
January 20, 1997,. Mr. Laska has been a director since 1993. A replacement
director has not been named as of the date of this filing and Mr. Laska's
position remains vacant.
Mr. George C. Siller, Jr. resigned as a Director of the Company
effective February 4, 1997 ,. Mr. Siller has been a director since July,
1995. Mr. Siller has remained with the Company serving as Vice
President-General Manager. A replacement director has not been named as the
date of this filing and Mr. Siller's position remains vacant.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Exhibits -
27 - Financial Data Schedule
(b) Reports on Form 8-K - None
Page 13 of 15
<PAGE>
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant
caused this report to be signed on its behalf by the undersigned, thereto
duly authorized.
Intile Designs, Inc.
------------------------------------
(Registrant)
Date: February 19, 1997 /s/ C. William Cox
------------------------------------
C. William Cox
President
(Chief Financial and
Accounting Officer)
Page 14 of 15
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
This schedule contains summary financial information extracted from the
Condensed Consolidated Balance Sheets and Condensed Consolidated Statement of
Income found on pages 3 and 4 of the Company's form 10-QSB for the Year-to-date,
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> MAR-31-1997
<PERIOD-END> DEC-31-1996
<CASH> 166,984
<SECURITIES> 0
<RECEIVABLES> 1,465,955
<ALLOWANCES> 205,869
<INVENTORY> 8,446,475
<CURRENT-ASSETS> 10,182,918
<PP&E> 1,767,971
<DEPRECIATION> 1,114,472
<TOTAL-ASSETS> 11,279,158
<CURRENT-LIABILITIES> 8,293,445
<BONDS> 0
0
0
<COMMON> 281
<OTHER-SE> 4,722,767
<TOTAL-LIABILITY-AND-EQUITY> 11,279,158
<SALES> 12,918,854
<TOTAL-REVENUES> 12,918,854
<CGS> 7,617,936
<TOTAL-COSTS> 13,330,110
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 101,521
<INTEREST-EXPENSE> 480,594
<INCOME-PRETAX> (384,760)
<INCOME-TAX> 0
<INCOME-CONTINUING> (384,760)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (384,760)
<EPS-PRIMARY> (.14)
<EPS-DILUTED> (.14)
</TABLE>
