<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 March 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 0-25114
CALIFORNIA PRO SPORTS, INC.
-----------------------------------
(Exact name of registrant as specified in its charter)
Delaware 84-1217733
-------- ----------
(State or other jurisdiction of (I.R.S. Employer I.D. #)
incorporation or organization)
8102 White Horse Road, Greenville, SC 29611
-----------------------------------------------------
(Address of principal executive office) (Zip Code)
(864) 294-5370
--------------
(Registrant'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 Securities Exchange Act of 1934 during the past 12 months (or
for such shorter period that the registrant was required to file such report(s),
and (2) has been subject to such filing requirements for the past 90 days.
YES X NO
----- -----
APPLICABLE ONLY TO CORPORATE ISSUERS
State the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date: 4,033,511 common shares, par value
$.01 per share, outstanding at May 13, 1996.
Transitional Small Business Disclosure Format (Check One) YES NO X
------ ------
Page 1 of ___ total pages on this document.
<PAGE>
CALIFORNIA PRO SPORTS, INC.
AND SUBSIDIARY
PART I. FINANCIAL INFORMATION
PART II. OTHER INFORMATION
-2-
<PAGE>
CALIFORNIA PRO SPORTS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
MARCH 31, 1996
(Unaudited)
ASSETS
<TABLE>
<S> <C>
CURRENT ASSETS:
CASH $ 16,567
ACCOUNTS RECEIVABLES, LESS ALLOWANCE
FOR DOUBTFUL ACCOUNTS OF $81,823 2,799,775
DUE FROM RELATED PARTIES 318,958
INVENTORIES 3,418,686
PREPAID EXPENSES AND OTHER 457,769
----------
TOTAL CURRENT ASSETS 7,011,755
----------
PROPERTY AND EQUIPMENT, NET OF ACCUMULATED
DEPRECIATION 902,260
INTANGIBLE AND OTHER ASSETS, NET OF
ACCUMULATED AMORTIZATION 1,657,812
----------
2,560,072
----------
$9,571,827
==========
LIABILITIES AND SHAREHOLDERS' EQUITY
- - ------------------------------------
CURRENT LIABILITIES:
NOTE PAYABLE BANK $2,927,904
ACCOUNTS PAYABLE AND ACCRUED EXPENSES:
ACCOUNTS PAYABLE PLAYMAKER 896,863
OTHER ACCOUNTS PAYABLE, TRADE AND ACCRUED 888,433
OFFICERS/SHAREHOLDERS 260,000
----------
TOTAL CURRENT LIABILITIES 4,973,200
==========
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
PREFERRED STOCK $0.01 PAR VALUE, AUTHORIZED
5,000,000 SHARES; NO SHARES ISSUED
COMMON STOCK, $0.01 PAR, AUTHORIZED 10,000,000
SHARES; ISSUED AND OUTSTANDING 3,783,511 SHARES 37,835
WARRANTS 394,200
CAPITAL IN EXCESS OF PAR 4,727,492
DEFICIT (560,900)
----------
TOTAL SHAREHOLDERS' EQUITY 4,598,627
----------
$9,571,827
==========
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
-3-
<PAGE>
CALIFORNIA PRO SPORTS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
NET SALES $1,786,675 $2,939,247
---------- ----------
COST OF SALES:
SUBSTANTIALLY FROM A RELATED PARTY 889,096 1,989,444
OTHER 546,300 118,640
---------- ----------
1,435,396 2,108,084
---------- ----------
GROSS PROFIT 351,279 831,163
---------- ----------
OPERATING EXPENSES:
SALES AND MARKETING EXPENSE 303,094 476,256
GENERAL AND ADMINISTRATIVE EXPENSE 473,851 551,604
DEPRECIATION AND AMORTIZATION 166,516 136,717
CONSULTING FEES, RELATED PARTY 30,000 30,000
---------- ----------
973,461 1,194,577
---------- ----------
LOSS FROM OPERATIONS (622,182) (363,414)
---------- ----------
OTHER EXPENSES (INCOME):
INTEREST EXPENSE:
RELATED PARTY 2,840
OTHER 75,941 78,126
FOREIGN CURRENCY LOSS 1,161 26,601
ROYALTY INCOME AND OTHER (15,000)
---------- ----------
62,102 107,567
---------- ----------
LOSS BEFORE INCOME TAXES (684,284) (470,981)
INCOME TAX BENEFIT 293,000 160,300
---------- ----------
NET LOSS $ (391,284) $ (310,681)
========== ==========
NET LOSS PER SHARE $ (.10) $ (.10)
========== ==========
WEIGHTED AVERAGE NUMBER OF SHARES
OUTSTANDING 3,783,511 3,218,444
========== ==========
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
-4-
<PAGE>
CALIFORNIA PRO SPORTS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
THREE MONTHS ENDED MARCH 31, 1996
(Unaudited)
<TABLE>
<CAPTION>
CAPITAL
COMMON STOCK IN EXCESS
SHARES AMOUNT WARRANTS OF PAR DEFICIT TOTAL
--------- ------- -------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
BALANCES, JANUARY 1, 1996 3,783,511 $37,835 $394,200 $4,727,492 $(169,616) $4,989,911
NET LOSS FOR THREE MONTHS
ENDED MARCH 31, 1996 (391,284) (391,284)
--------- ------- -------- ---------- --------- ----------
BALANCES, MARCH 31, 1996 3,783,511 $37,835 $394,200 $4,727,492 $(560,900) $4,598,627
========= ======= ======== ========== ========= ==========
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS.
-5-
<PAGE>
CALIFORNIA PRO SPORTS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENT OF CASH FLOWS
THREE MONTHS ENDED MARCH 31, 1996 AND 1995
(Unaudited)
<TABLE>
<CAPTION>
1996 1995
---- ----
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
NET LOSS $ (391,284) $ (310,681)
---------- ----------
ADJUSTMENTS TO RECONCILE NET LOSS TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
DEPRECIATION AND AMORTIZATION 166,516 136,717
PROVISION FOR BAD DEBTS 10,215 14,587
DECREASE (INCREASE) IN ASSETS:
ACCOUNTS RECEIVABLE 1,742,592 2,049,802
DUE FROM RELATED PARTIES (20,381) 5,460
INVENTORIES (850,421) (828,085)
PREPAID EXPENSES (185,801) (252,066)
INCREASE (DECREASE) IN LIABILITIES:
ACCOUNTS PAYABLE PLAYMAKER 688,131 (2,599,425)
OTHER (600,525) (1,235,018)
---------- ----------
TOTAL ADJUSTMENTS 950,326 (2,708,028)
---------- ----------
NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 559,042 (3,018,709)
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
CAPITAL EXPENDITURES (40,035) (210,402)
---------- ----------
NET CASH USED IN INVESTING ACTIVITIES (40,035) (210,402)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
DECREASE IN BANK OVERDRAFT (35,499)
PROCEEDS FROM NOTES PAYABLE, RELATED PARTIES 170,000
REPAYMENT OF NOTES PAYABLE:
BANK (584,844) (1,252,979)
RELATED PARTIES (409,000)
OTHER (150,000)
NET PROCEEDS FROM ISSUANCE OF COMMON STOCK
AND WARRANTS 5,126,966
DEFERRED FINANCING COSTS (95,806) (40,000)
---------- ----------
NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES (510,650) 3,239,488
---------- ----------
NET INCREASE IN CASH 8,357 10,377
CASH BEGINNING 8,210
---------- ----------
CASH ENDING $ 16,567 $ 10,377
---------- ----------
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
CASH PAID FOR INTEREST $ 75,941 $ 133,508
---------- ----------
CASH PAID FOR INCOME TAXES $ 98,479 $ 25,575
========== ==========
SUPPLEMENTAL DISCLOSURE OF NON-CASH INVESTING
AND FINANCING ACTIVITIES:
ISSUANCE OF $0,000 SHARES OF COMMON STOCK IN
CANCELLATION OF A NOTE PAYABLE $ 200,000
==========
DEFERRED OFFERINGS COSTS DEDUCTED FROM THE
THE PROCEEDS OF THE INITIAL PUBLIC OFFERING $ 816,452
==========
</TABLE>
SEE NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
-6-
<PAGE>
CALIFORNIA PRO SPORTS, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements
Three Months Ended March 31, 1996 and 1995
(Unaudited)
1. The interim financial statements:
The interim financial statements have been prepared by California Pro
Sports, Inc. ("CPS" or the "Company") and, in the opinion of management,
reflect all material adjustments which are necessary to a fair statement of
results for the interim periods presented, which include normal recurring
adjustments. Certain information and footnote disclosures made in the last
annual report on Form 10-KSB have been condensed or omitted for the interim
statements. It is the Company's opinion that, when the interim statements
are read in conjunction with the December 31, 1995, annual report on Form
10-KSB, the disclosures are adequate to make the information presented not
misleading. The results of operations for the three months ended March 31,
1996 are not necessarily indicative of the operating results for the full
year.
2. Organization:
The accompanying consolidated financial statements include the accounts of
California Pro Sports, Inc. and its wholly-owned subsidiary, California
Pro, Inc. ("CP"), which was formed in January 1993 for the purpose of
acquiring California Pro USA Corporation, subsequently renamed "SCYL, Inc."
and dissolved in 1994. Intercompany transactions has been eliminated in
consolidation.
The Company sells in-line skates and accessories under the brand names
California Pro and Rolling Thunder to retail sporting goods stores
principally in North America. Substantially all in-line skates and
accessory products are manufactured by PlayMaker Co., Ltd. ("PlayMaker"), a
minority shareholder of the Company . In August 1994, the Company began
selling snowboards and accessories under the Kemper brand name to retail
sporting goods stores in North America, and distributors in Europe and
Japan.
3. Shareholders' Equity:
Initial Public Offering:
On January 25, 1995, the Company completed an initial public offering of
1,200,000 shares of common stock at $4.50 per share, and 1,200,000 warrants
(the "Warrants") at $0.25 per warrant. Each Warrant is exercisable through
January 1998 and allows for the purchase of one share of common stock at an
exercise price of $6.00 per share. In March 1995, the Representative of the
underwriters exercised its option to purchase an additional 180,000
Warrants at $0.25 per Warrant to cover over-allotments. The Company sold
the securities to the Representative at a discount of 10% of the public
offering price and paid the Representative a non-accountable expense
allowance of 3% of the gross proceeds of the public offering. The Company
also sold to the Representative for $100, warrants to purchase 120,000
shares of common stock at $7.20 per share, and warrants to purchase 120,000
Warrants at $.30 per Warrant. The Warrants to purchase common stock and the
Warrants to purchase Warrants are exercisable beginning January 1996
through January 2000. After deducting offering expenses, the Company
received net proceeds from the offering of approximately $4,200,000.
-7-
<PAGE>
CALIFORNIA PRO SPORTS, INC. AND SUBSIDIARY
Notes to Consolidated Financial Statements - (Continued)
Three Months Ended March 31, 1996 and 1995
(Unaudited)
3. Shareholders' Equity - (Continued):
Exercise of Warrants:
In January 1995, warrants to purchase 74,623 shares of restricted
common stock at $0.75 per share were exercised. The Company received
proceeds of $55,967.
Issuance of Warrants:
In connection with the initial public offering, the holders of the
Company's convertible promissory notes exercised their option to purchase
490,000 warrants at the price of $0.10 per warrant. The Company received
net proceeds of $49,000. These warrants have been registered by the
Company for resale by the holders and have the same terms and rights as the
Warrants sold in the initial public offering.
Issuance of Common Stock:
In January 1995, one option holder exercised his option to purchase
80,000 shares of common stock at $2.50 per share. The holder surrendered
a promissory note made to him by the Company in the principal amount of
$200,000 in exchange for the stock.
-8-
<PAGE>
ITEM TWO
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
* INTRODUCTION:
The Company imports and distributes products in two participant sports
categories. In-Line Skates and related accessory products are marketed
under the brand names California Pro/TM/ and Rolling Thunder/TM/, and since
August 1, 1994, snowboards and snowboard accessory products have been
marketed under the Kemper/R/ brand. The Company purchases most of its in-
line skate products from a Taiwanese manufacturer which is a minority
shareholder of the Company. Substantially all of its snowboards are
purchased from an Austrian supplier and snowboard accessory products are
purchased from both domestic and foreign suppliers.
The Company sells its skate products principally to major retail
sporting goods chains in North America and to U.S. Military Exchanges
worldwide, through independent sales representative groups, under an
exclusive royalty free perpetual license. Snowboard products are sold to
regional sporting goods chains and specialty shops through independent
sales agencies in the U.S. and Canada and directly by the Company to
foreign distributors. The Company plans to pursue additional channels of
distribution for each brand.
On March 31, 1996, the Company had purchase orders for future delivery
of products of approximately $2.6 million, compared with $4.7 million at
March 31, 1995. The decrease in the Company's backlog of orders is
attributable to some of the Company's in-line skate customers having
sufficient inventory within the in-line skate category, thereby delaying
their Spring 1996 orders. Although purchase orders are subject to
cancellation in the normal course of business, the Company expects to fill
most of the current orders by the end of the third quarter of 1996.
In 1995, the Company introduced two new in-line skate designs. One of
the models has a twin chassis that allows a skater to move with the
terrain. Each pivoting chassis acts as a suspension system, thereby
reducing shock. The other new introduction was the Blackhawk series. This
new design incorporates a two piece mold and a cuffed vented boot with
increased support based on a harder shell material. A two-buckle closure
gives a more open look. The Company markets this line for both male and
female adults as well as for the youth market.
The snowboard business is strongest during the third and fourth quarter,
however industry trade shows and other sales, marketing and administrative
costs are incurred during the first quarter.
-9-
<PAGE>
ITEM TWO
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
* RESULTS OF OPERATIONS:
The following table sets forth the Company's sales in units for its major
product categories for the periods indicated:
<TABLE>
<CAPTION>
Three Months Ended
March 31
1996 1995
---- ----
<S> <C> <C>
California Pro
In-Line Skates....................................... 31,700 50,700
Protective Equipment................................. 11,800 14,900
Accessories.......................................... 7,400 11,000
Kemper
Snowboards........................................... 2,100 500
Bindings............................................. 3,900 800
Accessories.......................................... 3,000 1,900
</TABLE>
The following table sets forth the Company's sales by major product category
for the period indicated:
<TABLE>
<CAPTION>
Three Months Ended
March 31
1996 % 1995 %
---- - ---- -
(Dollars in thousands)
<S> <C> <C> <C> <C>
California Pro
In-Line Skates............................... 1,270 71 2,410 82
Protective Equipment......................... 128 7 144 5
Accessories.................................. 40 2 220 7
Kemper
Snowboards................................... 198 11 66 2
Bindings..................................... 139 8 49 2
Accessories.................................. 12 1 50 2
</TABLE>
-10-
<PAGE>
ITEM TWO
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
* Three Months Ended March 31, 1996 Compared to March 31, 1995:
Net Sales:
Net sales for the three months ended March 31, 1996 decreased by $1,152,572
or approximately 39% compared to the three months ended March 31, 1995. Net
sales of the Company's in-line skate products for the three months ended
March 31, 1996 decreased by $1,336,628 or approximately 48%. This decrease
was attributable to the decreased unit sales with respect to the Company's
in-line skate business. Sales under the Kemper brand increased by $184,056.
Gross Profit:
Gross profit decreased by $479,884 for the 1996 period as compared to the
1995 period. Gross profit as a percent of sales decreased from 28.3% to
19.7%, primarily due to sales at substantially below normal selling prices
in the quarter ended March 31, 1996.
Sales and Marketing Expenses:
Sales and marketing expenses during the 1996 period decreased by $173,162,
compared to the 1995 period. The primary reasons were (1) lower commissions
earned by sales representatives of $119,726 as a result of the lower sales
and (2) a reduction in certain of the selling and marketing expenses of the
Kemper brand including trade shows, advertising, snowboard team riders.
General and Administrative Expenses:
During the three months ended March 31, 1996, general and administrative
expenses decreased by $77,753, compared to the three months ended March 31,
1995. The primary cause of the decrease in the current period were
decreased personnel costs of $44,530, due to the lower sales volume.
Additionally, other costs such as product liability insurance, telephone
and travel accounted for $24,586 of the decrease.
Depreciation and Amortization:
Depreciation and Amortization of purchased intangibles increased by $29,799
for the quarter ended March 31, 1996, compared to the quarter ended March
31, 1995. The cause of the increase was related to the depreciation expense
on the Company's acquisition of new in-line skate molds.
-11-
<PAGE>
ITEM TWO
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
* Three Months Ended March 31, 1996 Compared to March 31, 1995 - (Continued):
Consulting Fees:
Consulting fees remained the same for the quarters ended March 31,
1996 and 1995, respectively.
Income/Loss from Operations:
During the quarter ended March 31, 1996, the Company had a loss
from operations of $622,182 compared to $363,414 for the quarter ended
March 31, 1995. The primary reason for the increase in the loss was the
lower sales and gross profit of the Company's in-line skate business.
This result was partially offset by the lower operating costs of the
Company's in-line skate business in the quarter ended March 31, 1996
compared to March 31, 1995.
Other Expenses/Income:
Other expenses during the 1996 period decreased by $45,465 compared to the
1995 period. The decrease was primarily attributable to a reduction in the
loss incurred on foreign currency exchange, related to the Company's
snowboard operations of $25,440 for the 1996 period compared to the 1995
period. The Company purchases its snowboards in Deutsch Marks.
Additionally, royalty income of $15,000 was realized due to the minimum
royalty earned under its agreement with Big 5, a division of Toyota Nissan,
a Japanese company. Big 5 produces and distributes snowboards, and
outerwear for the Japanese market.
Income Tax Benefit/Expense:
The Company had an income tax benefit of $293,000 for the current period
which is to be offset against income tax expense expected to arise during
the year ended December 31, 1996.
Net Income/Loss:
The net loss for the quarter ended March 31, 1996 was $391,284 compared to
a net loss of $310,681 for the quarter ended March 31, 1995. The primary
reason for the increase in the net loss was the lower sales and gross
profit in the current quarter of the Company's in-line skate business,
partially offset by a decrease in the regular operating expenses of the
Company.
-12-
<PAGE>
ITEM TWO
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
* Three Months Ended March 31, 1996 Compared to March 31, 1995 - (Continued):
Liquidity and Capital Resources:
In January 1995, the Company completed an initial public offering of
1,200,000 shares of common stock at $4.50 per share and 1,200,000 warrants
at $.25 per warrant. The Company realized net proceeds of approximately
$4.2 million.
Net cash provided by operating activities was $559,042 for the quarter
ended March 31, 1996 compared to cash used in operating activities of
$3,018,709 for the quarter ended March 31, 1995. The increase is due to the
Company increasing its accounts payable owed to PlayMaker for inventory
purchases.
The Company has continued to fund its operations from its credit facility
with a bank, under a $5.5 million revolving line of credit.
The Company's working capital position has decreased from $2,399,163
at December 31, 1995 to $2,038,555 at March 31, 1996.
For payments to suppliers, the Company currently utilizes trade
acceptances, which generally are payable upon receipt of documentation by
the Company's bank, but no later than time of delivery, utilizing available
cash under the Company's revolving line of credit.
The Company's in-line skate sales are strongest late in the second and
third quarters of each calendar year. Kemper product sales are strongest
during the last two quarters of each year. Due to this seasonality, the
Company anticipated that it may incur a significant loss in the first
quarter of 1996.
In March 1996, the Company received a loan from a Officer/Director of
$170,000.
-13-
<PAGE>
PART II
OTHER INFORMATION
ITEM 5: Other Information:
In 1995, the Company formed another Delaware corporation, USA Skate
Corporation ("Skate Corp."). On May 15, 1996, the Company completed the
purchase of all of the capital stock of USA Skate Co., Inc. ("USA
Skate"), a New York Corporation, from the USA Skate shareholders. The
Company owns approximately 64% of Skate Corp's common stock. The
consideration for the purchase by Skate Corp. was $3,650,000 cash, a
$1,050,000 principal amount promissory note of Skate Corp. (The "Skate
Corp. Note"), with interest at eight percent per annum and $300,000 in
common stock of Skate Corp. Payment of the Skate Corp. Note will be
guaranteed by the Company and also invidually by Henry Fong and Michael
S. Casazza, Directors, Executive Officers and significant stockholders
of the Company. In connection with Skate Corp.'s acquisition of the USA
Skate stock, Warren Amendola ("Amendola"), will grant to USA Skate
license rights, for the United States, Canada aned wherever else
registered, to the VIC and VICTORIAVILLE trademarks and service marks
under which USA Skate will be required to pay Amendola percentage
royalties based on its sales, up to an aggregate maximum of $3 million.
Payments of the royalties due under the license will be guaranteed by
Skate Corp., the Company and Messrs. Fong and Casazza. Amendola also
has agreed to enter into a five-year consulting and a ten-year non-
compete agreement with the Company and Skate Corp. in return for
$900,000 in common stock of the Company. The number of shares of the
Company's Common Stock issued to Amendola was 400,000 and was based on
80% of the market value of the Company's Common Stock for the ten
trading days immediately preceding the closing.
ITEM 6: Exhibits and Reports on Form 8-K
(a) Exhibits
(b) Reports on Form 8-K
1. Form 8-K dated January 25, 1995, reporting "Other Events"
under Item 5.
2. Form 8-K dated March 8, 1995, reporting "Other Events" under
Item 5 and Financial Statements under Item 7.
-14-
<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, thereunto
duly authorized.
CALIFORNIA PRO SPORTS, INC.
Date: May 17, 1996 By: /s/ Michael S. Casazza
--------------------------------
Michael S. Casazza
President/Chief Operating Officer
Date: May 17, 1996 By: /s/ Barry S. Hollander
--------------------------------
Barry S. Hollander
Chief Financial Officer
-15-
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1996
<PERIOD-END> MAR-31-1996
<CASH> 16,567
<SECURITIES> 0
<RECEIVABLES> 2,881,598
<ALLOWANCES> 81,823
<INVENTORY> 3,418,686
<CURRENT-ASSETS> 7,011,755
<PP&E> 1,120,385
<DEPRECIATION> 218,125
<TOTAL-ASSETS> 9,571,827
<CURRENT-LIABILITIES> 4,973,200
<BONDS> 0
0
0
<COMMON> 37,835
<OTHER-SE> 4,560,792
<TOTAL-LIABILITY-AND-EQUITY> 9,571,827
<SALES> 1,786,675
<TOTAL-REVENUES> 1,786,675
<CGS> 1,435,396
<TOTAL-COSTS> 973,461
<OTHER-EXPENSES> 62,102
<LOSS-PROVISION> 10,215
<INTEREST-EXPENSE> 77,102
<INCOME-PRETAX> (684,284)
<INCOME-TAX> (293,000)
<INCOME-CONTINUING> (391,284)
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> (391,284)
<EPS-PRIMARY> (.10)
<EPS-DILUTED> (.10)
</TABLE>
