SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
[X] QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED OCTOBER 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 0-21764
SUPREME INTERNATIONAL CORPORATION
(Exact Name of Registrant as Specified in its Charter)
FLORIDA 59-1162998
(State or other jurisdiction of (IRS Employer Identification
Incorporation or organization) Number)
7495 NW 48TH STREET
MIAMI, FLORIDA 33166
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (305) 592-2830
Former name, former address and fiscal year, if changed since last report
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or such shorter period that the registrant was required
to file such reports), and (2) has been subject to such filing requirements for
the past 90 days. Yes X No ___
The number of shares outstanding of the registrant's common stock is 6,552,681
(as of December 10, 1997).
<PAGE>
SUPREME INTERNATIONAL CORPORATION
INDEX
PART I: FINANCIAL INFORMATION
ITEM 1:
Consolidated Balance Sheets
as of October 31, 1997 (Unaudited) and January 31, 1997 1
Consolidated Statements of Income (Unaudited)
for the three and nine months ended October 31, 1997 and
October 31, 1996 2
Consolidated Statements of Cash Flows (Unaudited)
for the nine months ended October 31, 1997 and October 31, 1996 3
Notes to Consolidated Financial Statements (Unaudited) 4
ITEM 2:
Management's Discussion and Analysis
of Financial Condition and Results of Operations 6
PART II: OTHER INFORMATION 10
Signatures 11
<PAGE>
<TABLE>
<CAPTION>
SUPREME INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
OCTOBER 31,
1997 JANUARY 31,
(UNAUDITED) 1997
----------- -----------
<S> <C> <C>
ASSETS
CURRENT ASSETS
Cash $ 1,469,588 $ 755,798
Accounts receivable, net 45,949,804 28,807,236
Inventories 31,547,265 32,200,522
Deferred income taxes 891,992 668,658
Other current assets 1,924,247 1,525,695
------------ ------------
Total current assets 81,782,896 63,957,909
PROPERTY AND EQUIPMENT, net 2,530,498 2,138,088
INTANGIBLE ASSETS, net 19,427,191 19,858,692
OTHER 2,095,239 2,203,601
------------ ------------
TOTAL $105,835,824 $ 88,158,290
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable $ 4,323,061 $ 5,584,924
Accrued expenses 1,441,975 2,063,040
Borrowings under credit facilities 5,500,000 6,812,629
Current portion of long-term debt 40,628,667 25,136,801
Other current liabilities 579,795 785,422
------------ ------------
Total liabilities 52,473,498 40,382,816
STOCKHOLDERS' EQUITY
Preferred stock - $.01 par value; 1,000,000 shares
authorized; no shares issued or outstanding -- --
Common stock - $.01 par value; 10,000,000 shares
authorized; 6,833,250 and 4,535,587 shares issued and
outstanding less 280,569 and 184,300 of treasury stock at
October 31 and January 31, 1997, respectively 65,527 43,513
Additional paid-in capital 27,620,399 27,419,452
Retained earnings 25,676,400 20,312,509
------------ ------------
Total stockholders' equity 53,362,326 47,775,474
------------ ------------
TOTAL $105,835,824 $ 88,158,290
============ ============
</TABLE>
See notes to consolidated financial statements.
1
<PAGE>
<TABLE>
<CAPTION>
SUPREME INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE MONTHS ENDED NINE MONTHS ENDED
OCTOBER 31, OCTOBER 31,
1997 1996 1997 1996
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
NET SALES $ 54,550,062 $ 46,021,405 $145,427,880 $114,388,098
COST OF GOODS SOLD 42,960,000 36,034,431 112,511,101 89,603,136
------------ ------------ ------------ ------------
GROSS PROFIT 11,590,062 9,986,974 32,916,779 24,784,962
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 8,443,000 6,279,840 23,645,775 16,900,892
------------ ------------ ------------ ------------
OPERATING INCOME 3,147,062 3,707,134 9,271,004 7,884,070
INTEREST EXPENSE 721,007 522,885 2,027,573 975,879
------------ ------------ ------------ ------------
INCOME BEFORE INCOME TAXES 2,426,055 3,184,249 7,243,431 6,908,191
PROVISION FOR INCOME TAXES 15,000 1,210,018 1,857,945 2,630,018
------------ ------------ ------------ ------------
NET INCOME $ 2,411,055 $ 1,974,231 $ 5,385,486 $ 4,278,173
============ ============ ============ ============
NET INCOME PER SHARE (SEE NOTE 5) $ 0.36 $ 0.30 $ 0.81 $ 0.65
============ ============ ============ ============
WEIGHTED AVERAGE NUMBER
OF COMMON SHARES (SEE NOTE 5) 6,740,405 6,607,104 6,660,995 6,592,103
============ ============ ============ ============
</TABLE>
See notes to consolidated financial statements.
2
<PAGE>
<TABLE>
<CAPTION>
SUPREME INTERNATIONAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
NINE MONTHS ENDED
OCTOBER 31,
1997 1996
------------ ------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 5,385,486 $ 4,278,173
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 1,230,204 696,270
Changes in assets and liabilities:
(Increase) in accounts receivable, net (17,142,568) (17,993,030)
Decrease in inventories 653,257 575,504
(Increase) in other current assets (398,552) (5,373)
Decrease (Increase) in other assets 108,362 (1,108,480)
(Decrease) Increase in accounts payable and accrued expenses (1,882,928) 5,633,045
(Decrease) Increase in other current liabilities (205,627) 909,182
------------ ------------
Net cash used in operating activities (12,252,366) (7,014,709)
------------ ------------
CASH FLOWS USED IN INVESTING ACTIVITIES:
Purchase of fixed and intangible assets (1,478,464) (1,111,147)
Sale of property and equipment 64,017 --
Purchase of Jolem Imports, Inc. -- (3,657,435)
Purchase of Munsingwear, Inc. -- (18,616,088)
------------ ------------
Net cash used in investing activities (1,414,447) (23,384,670)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (decrease) increase in short-term borrowings under credit facilities (1,312,629) 5,302,305
Proceeds from long-term debt 40,572,296 27,517,619
Payments on long-term debt (25,080,430) --
Repurchase of common stock -- (1,901,630)
Proceeds from exercise of stock options 201,366 --
------------ ------------
Net cash provided by financing activities 14,380,603 30,918,294
------------ ------------
NET INCREASE IN CASH 713,790 518,915
CASH AT BEGINNING OF PERIOD 755,798 258,533
------------ ------------
CASH AT END OF PERIOD $ 1,469,588 $ 777,448
============ ============
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for:
Interest $ 2,048,033 $ 750,721
============ ============
Income taxes $ 2,599,184 $ 2,016,807
============ ============
</TABLE>
See notes to consolidated financial statements.
3
<PAGE>
SUPREME INTERNATIONAL CORPORATION
ITEM 1. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. GENERAL
The accompanying unaudited consolidated financial statements have been
prepared in accordance with the instructions for Form 10-Q and
therefore do not include all information and footnotes necessary for a
fair presentation of financial position, results of operations and
changes in cash flows in conformity with generally accepted accounting
principles. The unaudited consolidated financial statements should be
read in conjunction with the audited financial statements and related
notes included in the Registrant's Annual Report on Form 10-K for the
year ended January 31, 1997. In the opinion of management, the
unaudited consolidated financial statements contain all adjustments
necessary for a fair presentation for the interim period presented and
all such adjustments are of a normal and recurring nature. The results
of operations for the nine months ended October 31, 1997 are not
necessarily indicative of the results which may be expected for the
entire fiscal year.
Certain amounts of the prior period have been reclassified to conform
to current year presentations.
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS
In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 128 ("SFAS No. 128"),
EARNINGS PER SHARE. The statement is effective for financial statements
for periods ending after December 15, 1997, and changes the method in
which earnings per share will be determined. Adoption of this statement
by the Company will not have a material impact on earnings per share.
In February 1997, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 129 ("SFAS No. 129"),
DISCLOSURE OF INFORMATION ABOUT CAPITAL STRUCTURE. The statement is
effective for financial statements for periods ending after December
15, 1997, and requires explanation of the pertinent rights and
privileges of the various securities outstanding. Adoption of this
statement by the Company will not have a material impact on its
consolidated financial statements.
In June 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 130 ("SFAS No. 130"), REPORTING
COMPREHENSIVE INCOME. The statement is effective for fiscal years
beginning after December 15, 1997, and requires the reporting and
display of comprehensive income and its components (revenues, expenses,
gains and losses) in a full set of general-purpose financial
statements. Adoption of this statement by the Company will not have a
material impact on the consolidated financial statements.
In June 1997, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 131 ("SFAS No. 131"), DISCLOSURE
ABOUT SEGMENTS OF AN ENTERPRISE AND RELATED INFORMATION. The statement
is effective for financial statements for periods beginning after
December 15, 1997, and requires information about operating segments in
annual financial statements and selected information about operating
segments in interim financial reports issued to shareholders. It also
demands related disclosure about products and services, geographical
areas, and major customers. Adoption of this statement by the Company
will not have a material impact on the consolidated financial
statements.
4
<PAGE>
2. INVENTORY
Inventories are stated at lower of cost or market on a First-in
First-out basis and consist of:
OCTOBER 31, 1997 JANUARY 31, 1997
---------------- ----------------
Finished goods $28,876,797 $27,445,635
Raw materials and in process 1,117,082 3,629,940
Merchandise in transit 1,553,386 1,124,947
----------- -----------
TOTAL $31,547,265 $32,200,522
=========== ===========
3. LETTER OF CREDIT FACILITIES
OCTOBER 31, 1997 JANUARY 31, 1997
---------------- ----------------
Total letter of credit facilities $ 60,000,000 $ 33,000,000
Borrowings (5,500,000) (6,812,629)
Outstanding letters of credit (27,800,471) (16,978,256)
------------ ------------
Total Available $ 26,699,529 $ 9,209,115
============ ============
4. EARNINGS PER SHARE
Earnings per common share and common equivalent share were computed by
dividing net income by the weighted average number of shares of common
stock and common stock equivalents outstanding during the year after
giving effect to the stock dividend discussed in Note 5. The number of
common shares was increased by the number of shares issuable on the
exercise of warrants and stock options when the market price of the
common stock exceeds the exercise price of the warrants or options.
This increase in the number of common shares was reduced by the number
of common shares that are assumed to have been purchased with the
proceeds from the exercise of the warrants or options; those purchases
were assumed to have been made at the average price of common stock
during the year. Earnings per share assuming full dilution was
determined in the same manner as earnings per common share and common
equivalent share except that the period-end stock price was used.
5. STOCK DIVIDEND
On July 21, 1997, the Company's Board of Directors declared a 3 for 2
stock split in the form of a stock dividend to be distributed on or
about August 15, 1997, to shareholders of record at the close of
business on July 31, 1997. Retained earnings was charged for the
2,178,144 additional shares to be issued based on the par value of the
Company's stock. All income per share and common shares outstanding
information have been retroactively restated to reflect said stock
dividend.
5
<PAGE>
6. STOCKHOLDERS' EQUITY
The following is a schedule of the transactions in the
stockholders' equity:
<TABLE>
<CAPTION>
COMMON STOCK ADDITIONAL RETAINED
------------ ---------- --------
SHARES AMOUNT PAID-IN CAPITAL EARNINGS
------ ------ --------------- --------
<S> <C> <C> <C> <C>
Balance, February 1, 1997 4,351,287 $43,513 $27,419,452 $20,312,509
Exercise of stock options 23,250 233 200,947 --
Net Income -- -- -- 5,385,486
Stock Dividend 2,178,144 21,781 -- (21,595)
--------- ------- ----------- -----------
Balance, October 31, 1997 6,552,681 $65,527 $27,620,399 $25,676,400
========= ======= =========== ===========
</TABLE>
ITEM 2: MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
Supreme International Corporation (the "Company") cautions
readers that certain important factors may affect the Company's actual
results and could cause such results to differ materially from any
forward-looking statements which may be deemed to have been made in
this Report or which are otherwise made by or on behalf of the Company.
For this purpose, any statements contained in this Report that are not
statements of historical fact may be deemed to be forward-looking
statements. Without limiting the generality of the foregoing, words
such as "may", "will", "expect", "believe", "anticipate", "intend",
"could", "would", "estimate", or "continue" or the negative other
variations thereof or comparable terminology are intended to identify
forward-looking statements. Factors which may affect the Company's
results include, but are not limited to, risks related to fashion
trends; the retail industry; reliance on key customers; contract
manufacturing; foreign sourcing; imports and import restrictions;
competition; seasonality; rapid expansion of business; dependence on
key personnel and other factors discussed herein and in the Company's
filings with the Securities and Exchange Commission.
RESULTS OF OPERATIONS
THREE AND NINE MONTHS ENDED OCTOBER 31, 1997 AS COMPARED TO
THREE AND NINE MONTHS ENDED OCTOBER 31, 1996.
Net sales for the three and nine months ended October 31, 1997
increased $8,528,657 (18.5%) and $31,039,782 (27.1%), respectively, to
$54,550,062 and $145,427,880 from $46,021,405 and $114,388,098 for the
three and nine months ended October 31, 1996 respectively. Such
increases are mainly attributable to the Munsingwear and Jolem brands,
acquired in September and May 1996, respectively, and are partially
offset by a decrease in revenues from certain other brands. Net sales
were $8,904,566 and $5,646,549 for the Munsingwear and Jolem brands,
respectively, for the quarter ended October 31, 1997. For the nine
months ended October 31, 1997, net sales were $22,442,995 and
$11,455,872 for the Munsingwear and Jolem brands, respectively. Net
sales for the Jolem brand were $1,752,038 and $2,083,462 for the three
and nine months ended October 31, 1996, respectively. Net sales for the
Munsingwear brand were $1,347,507 for the three and nine months ended
October 31, 1996.
6
<PAGE>
Cost of goods sold increased to $42,960,000 and $112,511,101,
respectively, for the three and nine months ended October 31, 1997 from
$36,034,431 and $89,603,136, for the three and nine months ended
October 31, 1996, reflecting the increased level of sales, as well as a
$1.2 million inventory adjustment necessitated by the Company's
downsizing of its 807 operations and outsourcing of its women's product
line via a licensing agreement. As a percentage of sales, cost of sales
increased to 78.8% in the three months ended October 31, 1997 from
78.3% in the three months ended October 31, 1996 and decreased to 77.4%
for the nine months ended October 31, 1997 from 78.3% in the nine
months ended October 31, 1996. Gross profits were $11,590,062 (21.2% of
sales) and $32,916,779 (22.6% of sales) in the three and nine month
period ended October 31, 1997, as compared to $9,986,974 (21.7% of
sales) and $24,784,962 (21.7% of sales) in the three and nine month
period ended October 31, 1996.
Selling, general and administrative expenses increased by
$2,163,160 or 34.4% from $6,279,840 in the three months ended October
31,1996 to $8,443,000 in the three month period ended October 31,1997
and by $6,744,883 or 39.9% from $16,900,892 for the nine months ended
October 31, 1996 to $23,645,775 for the nine months ended October 31,
1997. The increases in the selling, general and administrative expenses
are mainly attributable to an increase in advertising costs, as well as
an increase in amortization expense offset by an increase in royalty
income, both resulting from the Munsingwear acquisition. As a
percentage of sales, selling, general and administrative expenses were
15.5% and 16.3% for the three and nine month period ended October 31,
1997 and 13.6% and 14.8% for the three and nine months ended October
31, 1996.
Interest expense increased to $721,007 and to $2,027,573 for
the three and nine months ended October 31, 1997 from $522,885 and
$975,879 in the three and nine months ended October 31, 1996. This
increase is as a result of the additional indebtedness by the Company
related to the Munsingwear and Jolem acquisitions as well as increases
in the Company's working capital level as a consequence of the increase
in the Company's growth.
Income before taxes for the three and nine months ended
October 31, 1997 was $2,426,055 and $7,243,431 respectively, as
compared to income before taxes for the three and nine months ended
October 31, 1996 of $3,184,249 and $6,908,191, respectively. During the
quarter ended October 31, 1997, the Company reduced its tax provision
by $820,000 to adjust certain general tax reserves, as well as tax
provision items related to the acquisition of Munsingwear. Net income
was $2,411,055 and $5,385,486 for the three and nine months ended
October 31, 1997 representing net income per share of $0.36 and $0.81
respectively, as compared to $1,974,231 and $4,278,173 for the three
and nine months ended October 31, 1996, representing net income per
share of $0.30 and $0.65, respectively. Net income per share was
computed using the weighted average number of common shares outstanding
of 6,740,405 and 6,660,995 for the three and nine months ended October
31, 1997, and 6,607,104 and 6,592,103 for the three and nine months
ended October 31, 1996 after giving effect to the stock dividend
discussed in Note 5 to the unaudited consolidated financial statements
included elsewhere in this report.
LIQUIDITY AND CAPITAL RESOURCES
The Company has financed its growth in sales and other working
capital requirements principally from operating cash flows and
borrowings under a $35.0 million revolving credit agreement with a bank
(the "Revolving Credit Agreement"). The amount available for borrowings
under the Revolving Credit Agreement is determined pursuant to a
formula based upon the levels of eligible accounts receivable and
finished goods inventory, subject to a maximum of $35.0 million. The
Revolving Credit Agreement bears interest at the bank's prime rate or
LIBOR plus 1.5%.
7
<PAGE>
Substantially all the assets of the Company are pledged as collateral
under the Revolving Credit Agreement. This agreement expired in October
1997 at which time the Company secured a temporary credit line. The
Company has agreed in principle with a syndicate of banks on a new
revolving credit agreement and is currently negotiating the terms and
conditions of said agreement. The Company plans to consummate the new
agreement in January 1998 and anticipates that the terms and conditions
will be similar to those in the expired agreement. As of October 31,
1997, $40,628,667 was outstanding under the temporary credit line.
Cash flows used in operating activities were $12,252,366 for
the nine months ended October 31, 1997, principally representing cash
provided by net income of $5,385,486, a decrease in inventories of
$653,257, a net increase in other current liabilities of $205,627, and
an increase in accounts payable and accrued expenses of $1,882,928
offset by cash used to finance increases in accounts receivable and
other current assets of $17,142,568 and $398,552, respectively. Cash
flows used in operating activities were $7,014,709 for the nine months
ended October 31, 1996 principally representing cash provided by net
income of $4,278,173, a decrease in inventories of $575,504, a net
increase in other current liabilities of $909,182 and an increase in
accounts payable and accrued expenses of $5,633,045 offset by cash used
to finance increases in accounts receivable, other current assets and
other assets of $17,993,030, $5,373 and $1,108,480, respectively.
Cash flows used in investing activities for the nine months
ended October 31, 1997 were $1,414,447, primarily resulting from normal
requirements for capital expenditures. Cash flows used in investing
activities were $23,384,670 for the nine months ended October 31, 1996
principally as a result of the acquisition of certain assets of
Munsingwear (see "Results of Operations") in the amount of $18,616,088
as well as the Jolem acquisition in the amount of $3,657,435.
Cash flows provided by financing activities were $14,380,603
for the nine months ended October 31, 1997, primarily as a result of
proceeds from long-term debt and exercise of stock options of
$40,572,296 and $201,366, respectively, offset by a decrease in
short-term borrowings of $1,312,629 and payments on long-term debt of
$25,080,430. Cash flows provided by financing activities were
$30,918,294 for the nine months ended October 31, 1996, primarily as a
result of proceeds from long-term debt of $27,517,619 and short-term
borrowings of $5,302,305 offset by the purchase of treasury stock of
$1,901,630. During the nine months ended October 31, 1996, the Company
repurchased an aggregate of 184,300 shares of its common stock in the
open market.
The Company had working capital of $29,309,398 and $23,575,093
at October 31, 1997 and January 31, 1997, respectively. The Company's
current ratio was 1.56 at October 31, 1997 compared to 1.58 at January
31, 1997.
The Company maintains three facilities with a combined limit
of $60.0 million for letters of credit. The facilities further provide
the Company with an aggregate sublimit of $5.6 million for advances to
refinance letters of credit up to 120 days. In addition, the facilities
provide for aggregate outstanding cash advances of $4.4 million for
periods not exceeding 120 days. These facilities are secured by the
consignment of merchandise in transit under each letter of credit.
Indebtedness under these facilities bears interest at variable rates
substantially equal to the lenders' specified base lending rates minus
1.0%. Availability under these facilities totaled $26,699,529 and
$9,209,115 as of October 31, 1997 and January 31,1997, respectively.
Management believes that the combination of the borrowing
availability under the temporary credit line, existing working
capital and funds anticipated to be generated from operating
8
<PAGE>
activities will be sufficient to meet the Company's anticipated
operating and capital needs for the foreseeable future.
The Company is in the process of consolidating its
administrative offices, warehouse and distribution facilities into a
new 238,000 square foot leased facility in Miami which is being built
to the Company's specifications. The Company originally entered into an
agreement to purchase this facility. In September 1997, the Company
entered into an agreement with a financial institution where the
financial institution assumed the Company's obligation to purchase the
facility and entered into a long term lease with the Company. The lease
has an initial term of five years and a minimum annual rental of
approximately $1,300,000. As of October 31, 1997, the Company had
substantially completed the moving of its warehouse and distribution
operations into the new facility. The Company anticipates completing
the relocation of its administrative offices during the fourth quarter
of Fiscal 1998.
EFFECTS OF INFLATION AND FOREIGN CURRENCY FLUCTUATIONS
The Company does not believe that inflation significantly
affected its results of operations for the nine months ended October
31, 1997 and 1996.
The Company's purchases from foreign suppliers are made in
U.S. dollars. Accordingly, the Company, to date, has not been
materially adversely affected by foreign currency fluctuations.
9
<PAGE>
PART II: OTHER INFORMATION
ITEM 1. Legal Proceedings
Not applicable.
ITEM 2. Changes in Securities
Not applicable.
ITEM 3. Defaults Upon Senior Securities
Not applicable.
ITEM 4. Submission of Matters to a Vote of Security Holders
Not applicable.
ITEM 5. Other Information
Not applicable.
ITEM 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27.1 Financial Data Schedule (for SEC use only)
(b) Reports on Form 8-K - None
10
<PAGE>
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.
/s/RICHARD L. DUNN
Date: December 10, 1997 By: ------------------
Richard L. Dunn
Chief Financial Officer
11
<PAGE>
EXHIBIT INDEX
EXHIBIT DESCRIPTION
- ------- -----------
27.1 Financial Data Schedule
<TABLE> <S> <C>
<ARTICLE> 5
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JAN-31-1998
<PERIOD-END> OCT-31-1997
<CASH> 1,469,588
<SECURITIES> 0
<RECEIVABLES> 45,949,804
<ALLOWANCES> 0
<INVENTORY> 31,547,265
<CURRENT-ASSETS> 81,782,896
<PP&E> 2,530,498
<DEPRECIATION> 0
<TOTAL-ASSETS> 105,835,824
<CURRENT-LIABILITIES> 52,473,498
<BONDS> 0
0
0
<COMMON> 65,527
<OTHER-SE> 53,296,799
<TOTAL-LIABILITY-AND-EQUITY> 105,835,824
<SALES> 145,427,880
<TOTAL-REVENUES> 145,427,880
<CGS> 112,511,101
<TOTAL-COSTS> 112,511,101
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,027,573
<INCOME-PRETAX> 7,243,431
<INCOME-TAX> 1,857,945
<INCOME-CONTINUING> 5,385,486
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,385,486
<EPS-PRIMARY> .81
<EPS-DILUTED> .81
</TABLE>
