<PAGE>
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 MARCH 31, 2000
/ / TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE
EXCHANGE ACT
COMMISSION FILE NO. 1-12888
SPORT-HALEY, INC.
(Exact name of small business issuer as specified in its charter)
COLORADO 84-1111669
(State of other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
4600 E. 48TH AVENUE, DENVER, COLORADO 80216-3212
(Address of principal executive offices)
(303) 320-8800
(Issuer's telephone number including area code)
Check whether the issuer (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act 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 / /
State the number of shares outstanding in each of the issuer's classes of
common stock, as of the latest practicable date.
CLASS OUTSTANDING AT MAY 10, 2000
COMMON STOCK, NO PAR VALUE 3,650,385
Transitional Small Business Disclosure Format (check one): Yes / / No /X/
<PAGE>
INDEX
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
PART 1 - FINANCIAL INFORMATION
ITEM 1 - FINANCIAL STATEMENTS
CONSOLIDATED BALANCE SHEETS 3
CONSOLIDATED STATEMENTS OF INCOME 4
CONSOLIDATED STATEMENTS OF CASH FLOWS 5
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 6-9
ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS 10-13
PART II - OTHER INFORMATION 14
SIGNATURES 15
</TABLE>
<PAGE>
SPORT-HALEY, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
MARCH 31, JUNE 30,
2000 1999
------------ ------------
(UNAUDITED) (NOTE)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 8,483 $ 8,581
Short-term investments and marketable securities 1 1
Accounts receivable, net of allowances of
$85 and $87, respectively 6,503 5,671
Inventories 10,221 13,283
Other current assets 1,300 1,585
Deferred taxes 130 124
---------- ----------
Total current assets 26,638 29,245
Property and equipment, net 2,282 2,468
Net assets of discontinued operations - 306
Goodwill, net of amortization 281 84
Deferred taxes 177 51
Other assets 306 313
---------- ----------
$ 29,684 $ 32,467
========== ==========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Note payable $ - $ 600
Accounts payable 377 788
Accrued income taxes 136 -
Accrued commissions and other expenses 833 769
---------- ----------
Total current liabilities 1,346 2,157
---------- ----------
Minority interest - (191)
---------- ----------
Shareholders' equity:
Preferred stock, no par value; 1,500,000 shares
authorized; none issued and outstanding - -
Common stock, no par value; 15,000,000 shares
authorized; 3,655,385 and 4,257,552 shares
issued and outstanding, respectively 13,902 16,355
Additional paid-in capital 990 880
Retained earnings 13,446 13,266
---------- ----------
Total shareholders' equity 28,338 30,501
---------- ----------
$ 29,684 $ 32,467
========== ==========
</TABLE>
Note: Taken from the audited balance sheet at that date.
-3-
<PAGE>
SPORT-HALEY, INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
MARCH 31, MARCH 31,
2000 1999 2000 1999
----------- ----------- ----------- -----------
(UNAUDITED) (UNAUDITED) (UNAUDITED) (UNAUDITED)
<S> <C> <C> <C> <C>
Net sales $ 7,837 $ 7,903 $ 17,771 $ 20,823
Cost of goods sold 6,014 5,547 12,948 13,737
----------- ----------- ----------- -----------
Gross profit 1,823 2,356 4,823 7,086
Selling, general and administrative expense 1,759 1,802 4,989 5,186
----------- ----------- ----------- -----------
Income (loss) from operations 64 554 (166) 1,900
Other income (expense), net 194 106 609 337
----------- ----------- ----------- -----------
Income from continuing operations before
income taxes and minority interest 258 660 443 2,237
Minority interest (11) 53 - 151
Provision for income taxes 91 289 105 838
----------- ----------- ----------- -----------
Income from continuing operations 156 424 338 1,550
Discontinued operations:
Loss from discontinued operations,
net of income tax benefit of 0, 12,
0, and 29, respectively - (19) - (46)
Loss on disposal of assets, net of
income tax benefit of 0, 0, 101,
and 0, respectively - - (158) -
----------- ----------- ----------- -----------
Net income $ 156 $ 405 $ 180 $ 1,504
=========== =========== =========== ===========
Basic earnings per common share $ .04 $ .09 $ .05 $ .34
=========== =========== =========== ===========
Diluted earnings per common share $ .04 $ .09 $ .05 $ .34
=========== =========== =========== ===========
</TABLE>
-4-
<PAGE>
SPORT-HALEY, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(IN THOUSANDS)
<TABLE>
<CAPTION>
NINE MONTHS ENDED
MARCH 31,
2000 1999
----------- -----------
(UNAUDITED) (UNAUDITED)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 180 $ 1,504
Adjustments to reconcile net income to net cash
provided by operating activities:
Unrealized gain on investments to maturity (1) -
Loss on disposal of assets 258 -
Depreciation and amortization 559 438
Deferred taxes, net (132) (21)
Allowance for doubtful accounts 117 105
Stock option compensation 111 196
Goodwill on purchase of minority interest (191) -
Change in minority interest 191 (149)
Cash provided (used) due to changes in assets and liabilities:
Accounts receivable (949) (1,045)
Inventory 3,062 2,348
Other current assets 286 (138)
Other assets 7 -
Accounts payable (412) (1,507)
Accrued commissions and other expenses 64 (66)
Accrued income taxes 136 (318)
Other liabilities - (4)
----------- -----------
Net cash provided by operating activities 3,286 1,343
----------- -----------
CASH FLOWS FROM FINANCING ACTIVITIES:
Advance on note payable - 100
Principal payments on note payable (600) -
Net proceeds from issuance of common stock 32 205
Repurchase of common stock (2,485) (1,769)
----------- -----------
Net cash used by financing activities (3,053) (1,464)
----------- -----------
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from disposal of assets 54 38
Purchase common stock of subsidiary
from minority interest stockholder (24) -
Purchase of fixed assets (361) (684)
----------- -----------
Net cash used by investing activities (331) (646)
----------- -----------
NET DECREASE IN CASH (98) (767)
CASH AND CASH EQUIVALENTS, BEGINNING 8,581 6,502
----------- -----------
CASH AND CASH EQUIVALENTS, ENDING $ 8,483 $ 5,735
=========== ===========
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the period for:
Income taxes $ - $ 694
=========== ===========
Interest $ 27 $ 32
=========== ===========
</TABLE>
-5-
<PAGE>
SPORT-HALEY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The consolidated financial statements included herein have been
prepared by Sport-Haley, Inc. (the "Company") without audit,
pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and footnote
disclosures normally included in the financial statements
prepared in accordance with generally accepted accounting
principles have been condensed or omitted as allowed by such
rules and regulations. The Company believes that the disclosures
are adequate to make the information presented not misleading.
It is suggested that these financial statements be read in
conjunction with the Company's annual audited consolidated
financial statements dated June 30, 1999, included in the
Company's annual report on Form 10-K as filed with the
Securities and Exchange Commission. While management believes
the procedures followed in preparing these financial statements
are reasonable, the accuracy of the amounts are, in some
respects, dependent upon the facts that will exist, and
procedures that will be accomplished by the Company later in the
year.
The management of the Company believes that the accompanying
unaudited condensed consolidated financial statements are
prepared in conformity with generally accepted accounting
principles, which require the use of management estimates, and
contain all adjustments (including normal recurring adjustments)
necessary to present fairly the operations and cash flows for
the periods presented.
The consolidated financial statements include the accounts of
Sport-Haley, Inc., and its wholly-owned subsidiary, B&L
Sportswear, Inc. (collectively referred to as the "Company").
All significant inter-company accounts and transactions have
been eliminated.
NOTE 2 INVENTORIES
Inventories at March 31, 2000 consist of the following:
<TABLE>
<S> <C>
Raw materials $ 4,000,000
Finished goods 6,221,000
------------
$ 10,221,000
============
</TABLE>
NOTE 3 INCOME TAXES
The components of the net deferred tax assets and net deferred
tax liabilities recognized in the accompanying balance sheet as
of March 31, 2000, are as follows:
<TABLE>
<CAPTION>
CURRENT LONG-TERM
----------- -----------
<S> <C> <C>
Deferred tax assets $ 130,000 $ 177,000
Deferred tax liabilities - -
----------- -----------
$ 130,000 $ 177,000
=========== ===========
</TABLE>
-6-
<PAGE>
SPORT-HALEY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 3 INCOME TAXES (Continued)
The types of temporary differences between the tax bases of
assets and liabilities and the financial reporting amounts that
give rise to a significant portion of the net deferred tax
assets and their appropriate tax effects at March 31, 2000, are
as follows:
<TABLE>
<CAPTION>
TAX EFFECT
DIFFERENCE CURRENT LONG-TERM
---------- --------- ---------
<S> <C> <C> <C>
Unrealized loss on investment $ 233,000 $ 91,000 $ -
Provision for bad debt 101,000 39,000 -
Stock option compensation 679,000 - 265,000
Accumulated depreciation 226,000 - (88,000)
--------- ---------
$ 130,000 $ 177,000
========= =========
</TABLE>
The components of income tax expenses are as follows:
<TABLE>
<S> <C>
Continuing operations:
Current:
Federal $ 207,000
State 30,000
---------
237,000
---------
Deferred:
Federal (115,000)
State (17,000)
---------
(132,000)
---------
105,000
---------
Discontinued operations:
Federal (88,000)
State (13,000)
---------
(101,000)
---------
Grand Total $ 4,000
=========
</TABLE>
NOTE 4 REPURCHASE OF COMMON STOCK
The repurchase of the Company's common stock is based upon the
Board of Directors' belief that the Company's common stock is
under-priced, considering the Company's earnings, book value,
working capital, and prospects for future operations.
Repurchases may be made periodically in the open market, block
purchases or in privately negotiated transactions, depending on
market conditions and other factors. The Company has no
commitment or obligation to repurchase all or any portion of the
shares. All shares repurchased by the Company are cancelled and
returned to the status of authorized but unissued common stock.
-7-
<PAGE>
SPORT-HALEY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 REPURCHASE OF COMMON STOCK (continued)
From December 1994 through March 2000, the Company's Board of
Directors authorized the repurchase of up to a total of
1,500,000 shares of its common stock. Through March 31, 2000,
the Company repurchased a total of 1,302,000 shares at a cost of
approximately $9.4 million.
From April 1, 2000, through May 10, 2000, the Company
repurchased an additional 5,000 shares of its common stock at a
cost of approximately $22,000.
NOTE 5 COMMON STOCK OPTIONS
At March 31, 2000, there were 547,881 option shares outstanding
at prices ranging from $2.50 to $10.63, with expiration dates
between March 15, 2002, and January 5, 2010. The remaining
number of option shares available for issuance under the
Company's stock option plan was 78,998.
During the nine months ended March 31, 2000, 8,333 options were
exercised at a price of $2.50 per share.
Included in the Company's net income for the nine months ended
March 31, 2000, is a charge of approximately $118,000 which is a
result of applying Statement of Financial Accounting Standards
No. 123, ACCOUNTING FOR STOCK BASED COMPENSATION.
NOTE 6 EARNINGS PER SHARE
The Company adopted the provisions of Statement of Financial
Accounting Standards No. 128, EARNINGS PER SHARE (SFAS No. 128),
effective with the year ended June 30, 1998. SFAS No. 128
requires the presentation of basic and diluted net income per
common share. The following table provides a reconciliation of
the numerator and denominator of basic and diluted net income
per common share:
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31, 2000
--------------------------------------
NET
INCOME SHARES PER SHARE
---------- --------- ---------
<S> <C> <C> <C>
EARNINGS PER COMMON SHARE
Income available
to common shareholders $ 156,000 3,687,661 $ 0.04
=========
Effect of Dilutive Securities
Options - -
---------- ---------
Diluted earnings per share $ 156,000 3,687,661 $ 0.04
========== ========= =========
</TABLE>
-8-
<PAGE>
SPORT-HALEY, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 4 EARNINGS PER SHARE (continued)
<TABLE>
<CAPTION>
NINE MONTHS ENDED MARCH 31, 2000
--------------------------------------
NET
INCOME SHARES PER SHARE
---------- --------- ---------
<S> <C> <C> <C>
EARNINGS PER COMMON SHARE
Income available
to common shareholders $ 180,000 3,784,379 $ 0.05
=========
Effect of Dilutive Securities
Options - -
---------- ---------
Diluted earnings per share $ 180,000 3,784,379 $ 0.05
========== ========= =========
</TABLE>
<TABLE>
<CAPTION>
THREE MONTHS ENDED MARCH 31, 1999
--------------------------------------
NET
INCOME SHARES PER SHARE
---------- --------- ---------
<S> <C> <C> <C>
EARNINGS PER COMMON SHARE
Income available
to common shareholders $ 405,000 4,401,152 $ 0.09
========
Effect of Dilutive Securities
Options - -
---------- ---------
Diluted earnings per share $ 405,000 4,401,152 $ 0.09
========== ========= ========
</TABLE>
<TABLE>
<CAPTION>
NINE MONTHS ENDED MARCH 31, 1999
--------------------------------------
NET
INCOME SHARES PER SHARE
EARNINGS PER COMMON SHARE ---------- --------- ---------
-------------------------
<S> <C> <C> <C>
Income available
to common shareholders $ 1,504,000 4,443,072 $ 0.34
========
Effect of Dilutive Securities
Options - -
----------- ---------
Diluted earnings per share $ 1,504,000 4,443,072 $ 0.34
=========== ========= ========
</TABLE>
-9-
<PAGE>
SPORT-HALEY, INC.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION
The Company intends to rely on cash generated from operations and available cash
on hand to finance its working capital requirements for at least the next 12
months. To the extent such amounts are insufficient to finance the Company's
working requirements, the Company may also make periodic borrowings under its
revolving line of credit. Working capital at March 31, 2000, was approximately
$25.2 million compared to $28.4 million at March 31, 1999. Working capital
decreased primarily because the Company expended approximately $3.0 million to
repurchase 720,000 shares of its common stock during the twelve-month period
ended March 31, 2000.
Cash and cash equivalents have decreased since June 30, 1999, by approximately
$98,000. During the nine months ended March 31, 2000, operating activities
provided cash of approximately $3.3 million. During the same nine-month period,
the Company expended approximately $2.5 million to acquire 615,000 shares of its
common stock. The Board of Directors had authorized the repurchases, and
management believed the repurchases of these shares would benefit the
shareholders by increasing book value with no material adverse effect on working
capital. The book value per share at March 31, 2000, exhibits an increase of
approximately $0.59 per share since June 30, 1999.
Since June 30, 1999, receivables have increased by approximately $832,000 from
approximately $5.7 million to approximately $6.5 million. Receivables have
increased primarily because the majority of March 2000 orders were shipped in
the last half of the month and were not due to be collected until late April or
early May. The Company continues to apply intensified efforts to ensure the
timely collection of its accounts, and management believes that the allowance
for doubtful accounts is adequate.
During the nine-month period ended March 31, 2000, inventories have decreased by
approximately $3.1 million from approximately $13.3 million to approximately
$10.2 million, or by approximately 23%. The decrease is a direct result of
management's successful efforts to reduce prior seasons' finished goods
inventories and implementation of improved controls relating to levels of
production for current-season merchandise.
Other current assets have decreased by approximately $286,000 since June 30,
1999, to approximately $1.3 million. The decrease, primarily in prepaid
expenses, is attributable to management's continued efforts to control costs.
For the nine-month period ended March 31, 2000, the Company expended
approximately $361,000 for the purchase of property and equipment. During the
same period, the Company received approximately $54,000 from the disposition of
its headwear manufacturing equipment, which had a book value of approximately
$313,000, resulting in a loss on disposition of approximately $259,000. During
the nine months ended March 31, 2000, approximately $559,000 in depreciation and
amortization was charged to current operations.
During the nine months ended March 31, 2000, the Company used approximately
$348,000 in funds to reduce its accounts payable and other accrued liabilities
to approximately $1.2 million. During the three months ended March 31, 2000, the
Company also used approximately $600,000 in funds to pay off its revolving line
of credit. Accrued income taxes payable have increased approximately $136,000
since June 30, 1999.
-10-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FINANCIAL CONDITION (continued)
Total shareholders' equity decreased by approximately $2.2 million for the
nine-month period ended March 21, 2000. The decrease was primarily the result of
the repurchase by the Company of 615,000 shares of its common stock at a cost of
approximately $2.5 million in the nine-month period. As a result, the Company's
book value per share increased by approximately $0.59 per share to approximately
$7.75 per share.
RESULTS OF OPERATIONS
The Company's business is seasonal in nature, and therefore the results for any
one or more quarters are not necessarily indicative of annual results or
continuing trends.
Net sales for the fiscal quarter and nine months ended March 31, 2000, were
approximately $7.8 million and $17.8 million, respectively, decreases of
approximately $66,000 or 1%, and $3.0 million or 15%, from net sales of
approximately $7.9 million and $20.8 million for the same periods in the prior
fiscal year. The decrease in net sales for the nine months ended March 31, 2000,
is attributable to fewer orders placed by golf professional shops for the Fall
1999 season, continued reduction of prior seasons' finished goods inventories at
reduced sales prices, and relatively flat sales in the intensely competitive
golf apparel market as a whole.
As a percentage of sales, gross profit was approximately 23% and 27% for the
fiscal quarter and nine months ended March 31, 2000, respectively, and
approximately 30% and 34% for the same periods in the prior fiscal year. The
decrease in gross profit is due to a combination of factors, including the
disposal of excess prior-seasons' finished goods inventories at reduced sales
prices, inventory adjustments, and increases in indirect allocable costs.
Because these factors are not expected to improve in the current fiscal year,
management anticipates that gross profit as a percentage of net sales for the
fiscal quarter ending June 30, 2000, will approximate the gross profit
percentage achieved in the fiscal quarter ended March 31, 2000.
During the current fiscal year, management implemented new marketing strategies
designed to improve brand identity and loyalty for the Company's products.
Because of the new marketing strategies, management's continued efforts to
control costs, management's successful efforts to reduce prior seasons' finished
goods inventories in Fiscal 2000, the implementation of improved controls
relating to levels of production for seasonal merchandise, and based upon
advance orders received for the Fall 2000 season, management expects gross
profit margins for Fiscal 2001 to more closely approximate historical gross
profit margins achieved by the Company.
Selling, general and administrative expenses decreased by approximately $197,000
or 4%, to approximately $5.0 million for the nine months ended March 31, 2000,
from approximately $5.2 million for the same period in the prior fiscal year.
The decrease is attributable to reduced commissions paid to independent sales
representatives on lower sales volume, decreased advertising expenditures, and
management's controls designed to reduce general and administrative
expenditures.
Other income (expense) increased by approximately $272,000 for the nine-month
period ended March 31, 2000, as compared to the same period in the prior fiscal
year. The increase is primarily due to refunds of state income taxes relating to
certain expenditures in prior years.
-11-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS (continued)
Effective July 1, 1999, the Company increased its 52% ownership in its
subsidiary to a 93% interest. Effective February 1, 2000, the Company further
increased its ownership to 96%. On both occasions, the Company increased its
ownership by converting outstanding debt owed by the subsidiary to the Company
for additional equity in the subsidiary. Effective March 27, 2000, the Company
obtained 100% interest in its subsidiary by purchasing the common stock held by
the minority interest stockholder, at a cost of approximately $24,000.
Income from continuing operations before provision for income taxes and minority
interest decreased by approximately $1.8 million, or 80%, for the nine months
ended March 31, 2000, from approximately $2.2 million for the same period in the
prior fiscal year. The decrease is due to a combination of factors, including
the disposal of excess prior seasons' inventories at reduced sales prices,
inventory adjustments, and increases in indirect allocable costs.
Earnings for the nine months ended March 21, 2000, reflect pre-tax losses of
approximately $259,000 from the disposition of headwear equipment. The Company
discontinued the manufacturing and sale of headwear during the fiscal year ended
June 30, 1999, and had disposed of all inventories and equipment relating to
headwear as of December 31, 1999.
The Company's effective tax rates for the nine months ended March 31, 2000, and
1999, were approximately 24% and 35%, respectively. The decrease in the
effective rate for the nine months ended March 31, 2000, is due to the decrease
in taxable income and timing differences of certain book expenses and tax
deductions.
For the nine-month period ended March 31, 2000, net income decreased by
approximately $1.3 million, or 88%, when compared to the same period in the
prior fiscal year. The decrease is the result of reduced sales, lower gross
margins, and loss on disposition of the Company's headwear manufacturing
equipment.
Both the basic and diluted earnings per share were $.05 for the nine months
ended March 31, 2000. This compares to basic and diluted earnings per share of
$.34 for the same period in Fiscal 1999.
YEAR 2000 ISSUE
The Company was cognizant of the Year 2000 issues associated with programming
code in computer systems. The Company utilizes an integrated computer system to
manage all business transactions, historical data and record keeping, including
sourcing, warehousing, embroidery and shipping. In preparation for the Year
2000, the Company installed a Year 2000 compliant upgrade to the software for
this system and tested all other systems. As of May 15, 2000, the Company had
not experienced, nor does it expect to experience, any disruption related to
Year 2000 issues in the operation of its systems. To the best knowledge of the
Company, none of the material suppliers, vendors and financial institutions with
which the Company has a business relationship experienced any failures or
disruptions in their computer systems caused by Year 2000 issues.
-12-
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
YEAR 2000 ISSUE (continued)
Although most Year 2000 related problems should have become evident on January
1, 2000, some problems may arise later. The Company does not expect any material
adverse effects from any remaining Year 2000 issues that could arise, nor does
it anticipate expending additional funds on the Year 2000 compliance issues.
-13-
<PAGE>
SPORT-HALEY, INC.
PART II
OTHER INFORMATION
ITEM 1 LEGAL PROCEEDINGS - NONE
ITEM 2 CHANGES IN SECURITIES AND USE OF PROCEEDS - NONE
ITEM 3 DEFAULTS UPON SENIOR SECURITIES - NONE
ITEM 4 SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
(a) The annual meeting of shareholders was held February 18, 2000.
(b) The following persons were elected directors for a one year term
or until their successors shall have been duly elected and
qualified.
Votes for Votes withheld
Robert G. Tomlinson 3,060,478 217,310
Robert W. Haley 3,060,478 217,310
Mark J. Stevenson 3,060,478 217,310
Ronald J. Norick 3,060,478 217,310
James H. Everest 3,060,478 217,310
(c) To ratify the appointment of Levine, Hughes & Mithuen, Inc. as
auditors of the Company.
For 3,244,433
Against 28,423
Abstain 4,932
ITEM 5 OTHER INFORMATION - NONE
ITEM 6 EXHIBITS AND REPORTS ON FORM 8-K
(A) EXHIBITS
27 FINANCIAL DATA SCHEDULE
(B) REPORTS ON FORM 8-K - NONE
-14-
<PAGE>
SIGNATURES
In accordance with the requirements of the Securities Exchange Act of 1934, the
Registrant caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
SPORT-HALEY, INC.
(Registrant)
Date: MAY 15, 2000 /S/ ROBERT G. TOMLINSON
------------ -----------------------
Robert G. Tomlinson
Chief Executive Officer
Date: MAY 15, 2000 /S/ PATRICK W. HURLEY
------------ ---------------------
Patrick W. Hurley
Chief Accounting Officer
-15-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-2000
<PERIOD-START> JUL-01-1999
<PERIOD-END> MAR-31-2000
<CASH> 8483
<SECURITIES> 1
<RECEIVABLES> 6588
<ALLOWANCES> 85
<INVENTORY> 10221
<CURRENT-ASSETS> 26638
<PP&E> 4408
<DEPRECIATION> 2126
<TOTAL-ASSETS> 29684
<CURRENT-LIABILITIES> 1346
<BONDS> 0
0
0
<COMMON> 13902
<OTHER-SE> 14436
<TOTAL-LIABILITY-AND-EQUITY> 29684
<SALES> 17771
<TOTAL-REVENUES> 17771
<CGS> 12948
<TOTAL-COSTS> 12948
<OTHER-EXPENSES> 4989
<LOSS-PROVISION> 117
<INTEREST-EXPENSE> 27
<INCOME-PRETAX> 443
<INCOME-TAX> 105
<INCOME-CONTINUING> 338
<DISCONTINUED> (158)
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 180
<EPS-BASIC> 0.05
<EPS-DILUTED> 0.05
</TABLE>
