<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 10-Q
(Mark One)
(x) Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934
For the quarterly period ended May 30, 1998 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 0-6708
Nautica Enterprises, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware 95-2431048
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
40 West 57th Street, New York, N.Y. 10019
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including Area Code (212)541-5757
Fiscal year changed from 2/28 to a 52/53 week year.
(Former Name, Former Address and Former 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 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 / /
APPLICABLE ONLY TO ISSUERS INVOLVED IN
BANKRUPTCY PROCEEDINGS DURING THE
PRECEDING FIVE YEARS
Indicate by check mark whether the registrant has filed all documents
and reports required to be filed by Section 12, 13, or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court
Yes / / No / /
APPLICABLE ONLY TO CORPORATE ISSUERS
The number of shares of Common Stock outstanding as of July 14, 1998
was 39,465,621.
<PAGE> 2
INDEX
Page No.
Part I - Financial Information:
Item 1. Financial Statements (Unaudited):
Condensed Consolidated Balance Sheets As at May 30, 1998 and February
28, 1998..............................................................2
Condensed Consolidated Statements of Earnings For the Three Month
Periods Ended May 30, 1998 and May 31, 1997...........................3
Condensed Consolidated Statements of Cash Flows For the Three Month
Periods Ended May 30, 1998 and May 31, 1997...........................4
Notes to Condensed Consolidated Financial Statements..................5
Item 2. Management's Discussion and Analysis of Financial Condition
and Results of Operations.....................................7
Part II - Other Information...................................................10
<PAGE> 3
NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands, except share data)
<TABLE>
<CAPTION>
ASSETS (unaudited)
May 30, February 28,
1998 1998
-------- --------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 50,066 $ 34,616
Short-term investments 53,292 52,680
Accounts receivable - net 57,497 81,135
Inventories 85,641 66,726
Prepaid expenses and other current assets 8,371 4,882
Deferred tax benefit 6,130 6,093
-------- --------
Total current assets 260,997 246,132
Property, plant and equipment, net of
accumulated depreciation and amortization 60,878 56,273
Other assets 8,600 8,046
-------- --------
$330,475 $310,451
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Current maturities of long-term debt $ 50 $ 50
Accounts payable - trade 31,470 18,743
Accrued expenses and other current liabilities 28,906 34,158
Income taxes payable 8,399 5,826
-------- --------
Total current liabilities 68,825 58,777
Long-term debt -net 50 100
Minority Interest 89 405
Stockholders' equity:
Preferred stock - par value $.01, authorized,
2,000,000 shares; no shares issued
Common stock - par value $.10, authorized, 100,000,000 shares; issued
42,526,000 shares at May 30, 1998 and 42,443,000 shares at
February 28, 1998 4,253 4,244
Additional paid-in capital 65,415 64,932
Retained earnings 227,024 217,174
-------- --------
296,692 286,350
Less:
Common stock in treasury - at cost;
3,070,000 shares at May 30, 1998
and February 28, 1998 35,181 35,181
-------- --------
Total stockholders' equity 261,511 251,169
-------- --------
$330,475 $310,451
======== ========
</TABLE>
The accompanying notes are an integral part of these statements.
-2-
<PAGE> 4
NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Amounts in thousands, except share data)
<TABLE>
<CAPTION>
(unaudited)
Three Months Three Months
Ended Ended
May 30, 1998 May 31, 1997
------------ ------------
<S> <C> <C>
Net Sales $ 110,980 $ 95,807
Cost of goods sold 59,226 51,488
------------ ------------
Gross profit 51,754 44,319
Selling, general and administrative expenses 38,815 33,772
Net royalty income (1,613) (1,195)
------------ ------------
Operating profit 14,552 11,742
Investment income, net 1,410 809
Minority interest in consolidated subsidiary 317 233
------------ ------------
Earnings before provision for income taxes 16,279 12,784
Provision for income taxes 6,430 5,113
------------ ------------
NET EARNINGS $ 9,849 $ 7,671
============ ============
Net earnings per share of common stock
Basic $ 0.25 $ 0.20
============ ============
Diluted $ 0.23 $ 0.18
============ ============
Weighted average number of common shares outstanding
Basic 39,419,000 39,255,000
============ ============
Diluted 41,981,000 41,969,000
============ ============
Cash dividends per common share none none
============ ============
</TABLE>
The accompanying notes are an integral part of these statements.
-3-
<PAGE> 5
NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in thousands)
<TABLE>
<CAPTION>
(unaudited)
Three Months Three Months
Ended Ended
May 30, 1998 May 31, 1997
-------- --------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES
Net earnings $ 9,849 $ 7,671
-------- --------
Adjustments to reconcile net earnings to net cash provided by operating
activities:
Minority interest in consolidated subsidiary (317) (233)
Depreciation and amortization 2,807 2,089
Provision for accounts receivable allowances and sales
returns and discounts 779 436
Changes in operating assets and liabilities
Accounts receivable 22,859 7,244
Inventories (18,915) (12,098)
Prepaid expenses and other current assets (3,489) (240)
Other assets (737) (1,599)
Accounts payable - trade 12,727 8,752
Accrued expenses and other current liabilities (5,252) 699
Income taxes payable 2,573 3,755
-------- --------
Total adjustments 13,035 8,805
-------- --------
Net cash provided by operating activities 22,884 16,476
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of property, plant and equipment (7,229) (5,141)
Purchase of short-term investments (650) (25,100)
-------- --------
Net cash used in investing activities (7,879) (30,241)
-------- --------
CASH FLOWS FROM FINANCING ACTIVITIES
Principal payments on long-term debt (50) (50)
Purchase of treasury stock -- (17,872)
Proceeds from issuance of common stock, net 495 28
-------- --------
Net cash provided by (used in) financing activities 445 (17,894)
-------- --------
Increase (decrease) in cash and cash equivalents 15,450 (31,659)
Cash and cash equivalents at beginning of period 34,616 71,887
-------- --------
Cash and cash equivalents at end of period $ 50,066 $ 40,228
-------- --------
Supplemental Information:
Cash payments for the periods ended:
Income taxes $ 3,838 $ 1,367
-------- --------
</TABLE>
The accompanying notes are an integral part of these statements.
-4-
<PAGE> 6
NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
MAY 30, 1998
(Unaudited)
NOTE 1 - The accompanying financial statements have been prepared
without audit pursuant to the rules and regulations of the Securities
and Exchange Commission. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted
pursuant to such rules and regulations. These statements include all
adjustments, consisting only of normal recurring accruals, considered
necessary for a fair presentation of financial position and results of
operations. The financial statements included herein should be read in
conjunction with the financial statements and notes thereto included in
the latest annual report on Form 10-K.
NOTE 2 - Effective March 1, 1998, the Company changed its fiscal year
end to a 52/53 week year. There was no impact on the results of
operations.
NOTE 3 - The results of operations for the three month period ended May
30, 1998 are not necessarily indicative of the results to be expected
for the full year.
NOTE 4 - The Company utilized the last-in, first-out "Lifo" method for
inventories as at May 30, 1998 and February 28, 1998 and for the three
month periods ended May 30, 1998 and May 31, 1997. The "Lifo" inventory
for the three month periods ended May 30, 1998 and May 31, 1997 are
based upon end of year estimates. Inventories at May 30, 1998 and
February 28, 1998 consist primarily of finished goods.
NOTE 5 - On March 1, 1998, the Company adopted Statement of Financial
Accounting Standards No. 130, "Reporting Comprehensive Income," which
requires companies to report certain changes in equity during a period,
as comprehensive income, which includes net earnings and the effects of
changes in unrealized gains and losses on securities, as follows:
<TABLE>
<CAPTION>
Three Months Three Months
ended ended
(AMOUNTS IN THOUSANDS) May 30, 1998 May 31, 1997
------- -------
<S> <C> <C>
Net earnings $ 9,849 $ 7,671
Changes in unrealized gains and losses
on securities, net of tax (57) 0
------- -------
Comprehensive Income $ 9,792 $ 7,671
======= =======
</TABLE>
-5-
<PAGE> 7
NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (continued)
MAY 30, 1998
(Unaudited)
NOTE 6 - Short-term investments consist primarily of government and
agency bonds, tax exempt municipal bonds and corporate bonds. At May
30, 1998, all securities were designated as available for sale. As of
May 30, 1998, gross unrealized gains of $262,000 and gross unrealized
losses of $20,000 (less deferred tax of $97,000) were credited to
stockholders' equity. For the three month period ended May 30, 1998,
gross realized gains and losses on sales of investments totaled $61,000
and $27,000, respectively.
NOTE 7 - Basic net earnings per share excludes dilution and is computed
by dividing income available to common shareholders by the
weighted-average common shares outstanding for the period. Diluted net
earnings per share reflects the weighted-average common shares
outstanding plus the potential dilutive effect of options which are
convertible into common shares. The effect of stock options which were
excluded from the calculation of diluted weighted-average shares was
not material to the financial statements.
NOTE 8 - During 1997, the FASB issued SFAS No. 131 "Disclosures about
Segments of an Enterprise and Related Information". Adoption of this
statement will not impact the Company's consolidated financial
position, results of operations or cash flows, and will be limited to
the form and content of its disclosures. This statement is effective
for fiscal years beginning after December 15, 1997. In accordance with
SFAS No. 131, the Company has elected to defer the initial application
until the fiscal year end.
-6-
<PAGE> 8
NAUTICA ENTERPRISES, INC. AND SUBSIDIARIES
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
MAY 30, 1998
(Unaudited)
RESULTS OF OPERATIONS
For the Three Months Ended May 30, 1998:
Net sales increased 16% to $111.0 million in the three months ended May
30, 1998 from $95.8 million in the comparable prior year period. This increase
is the result of increased sales of Nautica products. Wholesale sales increased
due to the expansion of Nautica's in-store shop program, including both new and
existing shops. Nautica retail sales increased as a result of opening additional
outlet stores and increased sales at existing stores. The increase in sales is
due primarily to increased unit volume rather than price increases.
Gross profit for the period was 46.6% compared to 46.3% in the
comparable prior year period. The increase resulted primarily from a shift to
the higher margin Nautica wholesale products and to an increase in retail outlet
store sales.
Selling, general and administrative expenses as a percentage of net
sales decreased to 35.0% from 35.3% in the comparable prior year period. The net
decrease resulted from the ability to leverage these expenses with increased
sales volume.
Net royalty income increased by $418,000 to $1,613,000 from $1,195,000
in the comparable prior year period. The increased royalty revenue was generated
from both new and existing licensees.
Investment income increased by $601,000 to $1,410,000 from $809,000 in
the comparable prior year period. The increase is primarily the result of higher
average cash balances and higher rates of return on investments.
The provision for income taxes decreased to 39.5% from 40.0% of
earnings before income taxes in the comparable prior year period. The decrease
is due primarily to a reduction in the effective state income tax rates.
Net earnings increased 28% to $9.8 million from $7.7 million in the
comparable prior year period as a result of the factors discussed above.
-7-
<PAGE> 9
LIQUIDITY AND CAPITAL RESOURCES
During the three months ended May 30, 1998, the Company generated cash
from operating activities of $22.9 million principally from net earnings and
higher cash receipts from increased sales. Increases in inventories of $18.9
million, resulting from increased sales levels, were financed principally by
cash generated from net earnings, increases in accounts payable-trade and
decreases in accounts receivable. During the three months ended May 31, 1997,
the Company generated cash from operating activities of $16.5 million
principally from net earnings and higher cash receipts from increased sales.
Increases in inventories of $12.1 million, resulting from increased sales
levels, were financed by cash generated from net earnings, increases in accounts
payable-trade and decreases in accounts receivable.
During the three months ended May 30, 1998, the Company's principal
investing activities related to the continued expansion of the Nautica in-store
shop program and amounts related to the expansion of showroom space. The Company
expects to continue to incur capital expenditures to expand such in-store shop
program. At May 30, 1998, there were no other material commitments for capital
expenditures.
During the year ended February 28, 1998, the Board of Directors
approved a stock repurchase program, authorizing the Company to repurchase up to
1,000,000 shares of its common stock. There were no repurchases made during the
three months ending May 30, 1998. During the three months ended May 31, 1997,
the Company repurchased 800,000 shares of its common stock at an aggregate cost
of $17.9 million.
The Company has $100.0 million in lines of credit with two commercial
banks available for short-term borrowings and letters of credit. These lines are
collateralized by imported inventory and accounts receivable. At May 30, 1998
and February 28, 1998, respectively, letters of credit outstanding under the
lines were $52.7 million and $42.3 million and there were no short-term
borrowings outstanding.
Historically, the Company has experienced its lowest level of sales in
the first quarter and its highest level in the third quarter. This pattern has
resulted primarily from the timing of shipments to retail customers for spring
and fall seasons. In the future, the timing of seasonal shipments may vary by
quarter.
INFLATION AND CURRENCY FLUCTUATIONS
The Company believes that inflation and the effect of fluctuations of
the dollar against foreign currencies have not had a material effect on the cost
of imports or the Company's results of operations.
-8-
<PAGE> 10
YEAR 2000
The Company recognizes the need to ensure that its systems,
applications and hardware will recognize and process transactions for the year
2000 and beyond. The Company expects to implement successfully the systems and
programming changes necessary to address year 2000 issues with respect to its
internal systems and does not believe that the cost of such actions will have a
material adverse effect on its results of operations or financial condition. The
Company also has initiated discussions with its significant suppliers, customers
and financial institutions to ensure that those parties have appropriate plans
to remediate year 2000 issues when their systems interface with the Company's
systems or may otherwise impact operations. Although the Company is not aware of
any material operational issues or costs associated with preparing its internal
systems for the year 2000, there can be no assurance that there will not be a
delay in, or increased costs associated with, the implementation of the
necessary systems and changes to address the year 2000 issues. The Company and
its' significant suppliers, customers, and financial institutions' inability to
implement such systems and changes could have an adverse effect on future
results of operations.
FORWARD-LOOKING AND CAUTIONARY STATEMENTS
Certain statements included in this report, including the words
"believes," "anticipates," "expects" and similar expressions are intended to
identify forward-looking statements. Such statements are subject to certain
risks and uncertainties which could cause actual results to differ materially
from those projected. Readers are cautioned not to place undue reliance on these
forward-looking statements which speak only as of the date hereof. The Company
undertakes no obligation to republish revised forward-looking statements to
reflect events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events. Readers are also urged to carefully review
and consider the various disclosures made by the Company in this report, as well
as the Company's periodic reports on Forms 10-K and 10-Q and other filings with
the Securities and Exchange Commission.
NEW ACCOUNTING PRONOUNCEMENTS
During 1997, the FASB issued SFAS No. 131 "Disclosures about Segments
of an Enterprise and Related Information". Adoption of this statement will not
impact the Company's consolidated financial position, results of operations or
cash flows, and will be limited to the form and content of its disclosures. This
statement is effective for fiscal years beginning after December 15, 1997. In
accordance with SFAS No. 131, the Company has elected to defer the initial
application until the fiscal year end.
-9-
<PAGE> 11
PART II
OTHER INFORMATION
Items I through 9. - All items are inapplicable except:
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibit 27. Financial Data Schedule
(b) Reports on Form 8-K. None
-10-
<PAGE> 12
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
NAUTICA ENTERPRISES, INC.
By: s/Harvey Sanders
-----------------------------------
Harvey Sanders
Chairman of the Board
and President
Date: July 14, 1998
By: s/Neal S. Nackman
-----------------------------------
Neal S. Nackman
V.P. Finance and
Chief Accounting Officer
Date: July 14, 1998
-11-
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF THE COMPANY AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> FEB-27-1999
<PERIOD-START> MAR-01-1998
<PERIOD-END> MAY-30-1998
<CASH> 50,066
<SECURITIES> 53,292
<RECEIVABLES> 60,342
<ALLOWANCES> 2,845
<INVENTORY> 85,641
<CURRENT-ASSETS> 8,371
<PP&E> 86,094
<DEPRECIATION> 25,216
<TOTAL-ASSETS> 330,475
<CURRENT-LIABILITIES> 68,825
<BONDS> 0
0
0
<COMMON> 4,253
<OTHER-SE> 257,258
<TOTAL-LIABILITY-AND-EQUITY> 330,475
<SALES> 110,980
<TOTAL-REVENUES> 114,003
<CGS> 59,226
<TOTAL-COSTS> 59,226
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 16,279
<INCOME-TAX> 6,430
<INCOME-CONTINUING> 9,849
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 9,849
<EPS-PRIMARY> 0.25
<EPS-DILUTED> 0.23
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF THE COMPANY AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<S> <C> <C> <C>
<PERIOD-TYPE> 9-MOS 6-MOS 3-MOS
<FISCAL-YEAR-END> FEB-28-1998<F1> FEB-28-1998<F1> FEB-28-1998<F1>
<PERIOD-START> MAR-01-1997 MAR-01-1997 MAR-01-1997
<PERIOD-END> NOV-30-1997 AUG-31-1997 MAY-31-1997
<CASH> 5,594,842 3,224,993 40,227,769
<SECURITIES> 58,462,684 34,749,980 25,100,000
<RECEIVABLES> 98,306,683 92,388,608 54,569,239
<ALLOWANCES> 2,077,950 1,318,643 1,677,948
<INVENTORY> 68,159,266 87,579,727 73,402,462
<CURRENT-ASSETS> 241,568,128 228,462,920 4,546,832
<PP&E> 76,388,709 68,664,774 63,851,139
<DEPRECIATION> 22,468,348 20,264,568 17,830,492
<TOTAL-ASSETS> 303,308,068 281,885,760 254,142,316
<CURRENT-LIABILITIES> 72,438,739 73,123,911 60,811,031
<BONDS> 0 0 0
0 0 0
0 0 0
<COMMON> 4,235,804 4,181,384 4,177,464
<OTHER-SE> 226,149,495 203,881,525 188,776,601
<TOTAL-LIABILITY-AND-EQUITY> 303,308,068 281,885,760 254,142,316
<SALES> 373,780,791 228,067,042 95,807,047
<TOTAL-REVENUES> 380,265,914 231,856,308 97,811,234
<CGS> 198,003,835 122,368,139 51,488,057
<TOTAL-COSTS> 198,003,835 122,368,139 51,488,057
<OTHER-EXPENSES> 0 0 0
<LOSS-PROVISION> 0 0 0
<INTEREST-EXPENSE> 0 0 0
<INCOME-PRETAX> 70,935,789 37,631,749 12,784,312
<INCOME-TAX> 28,344,316 15,052,700 5,113,725
<INCOME-CONTINUING> 42,591,473 22,579,049 7,670,587
<DISCONTINUED> 0 0 0
<EXTRAORDINARY> 0 0 0
<CHANGES> 0 0 0
<NET-INCOME> 42,591,473 22,579,049 7,670,587
<EPS-PRIMARY> 1.10 0.59 0.20
<EPS-DILUTED> 1.02 0.54 0.18
<FN>
<F1>The above schedule is restated to reflect the retroactive adoption of SFAS 128.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF THE COMPANY AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<S> <C> <C> <C> <C>
<PERIOD-TYPE> YEAR 9-MOS 6-MOS 3-MOS
<FISCAL-YEAR-END> FEB-28-1997<F1> FEB-28-1997<F1> FEB-28-1997<F1> FEB-28-1997<F1>
<PERIOD-START> MAR-01-1996 MAR-01-1996 MAR-01-1996 MAR-01-1996
<PERIOD-END> FEB-28-1997 NOV-30-1996 AUG-31-1996 MAY-31-1996
<CASH> 71,887,201 77,864,927 55,096,454 65,843,003
<SECURITIES> 0 0 0 0
<RECEIVABLES> 63,330,809 75,686,984 69,109,376 44,440,371
<ALLOWANCES> 2,759,000 1,418,553 1,318,643 1,120,000
<INVENTORY> 61,304,697 57,391,563 67,064,154 65,520,529
<CURRENT-ASSETS> 203,845,166 3,906,173 198,014,409 182,430,601
<PP&E> 58,710,285 54,147,125 51,282,543 45,699,207
<DEPRECIATION> 15,991,032 15,498,551 13,875,870 12,372,816
<TOTAL-ASSETS> 251,393,082 260,563,174 244,937,679 224,595,515
<CURRENT-LIABILITIES> 47,605,061 53,564,659 54,269,587 45,462,105
<BONDS> 0 0 150,000 150,000
0 0 0 0
0 0 0 0
<COMMON> 4,177,084 4,174,479 4,160,108 4,149,873
<OTHER-SE> 198,950,780 203,224,596 186,357,984 174,833,537
<TOTAL-LIABILITY-AND-EQUITY> 251,393,082 260,563,174 244,937,679 224,595,515
<SALES> 386,560,311 296,050,473 179,480,714 76,137,760
<TOTAL-REVENUES> 393,398,520 298,859,891 181,063,115 77,621,799
<CGS> 205,552,685 159,645,282 97,783,152 41,519,954
<TOTAL-COSTS> 205,552,685 159,645,282 97,783,152 41,519,954
<OTHER-EXPENSES> 0 0 0 0
<LOSS-PROVISION> 0 0 0 0
<INTEREST-EXPENSE> 0 0 0 0
<INCOME-PRETAX> 72,330,546 54,517,227 27,910,498 9,052,009
<INCOME-TAX> 28,600,050 21,806,891 11,164,200 3,620,800
<INCOME-CONTINUING> 44,040,339 32,710,336 16,746,298 5,431,209
<DISCONTINUED> 0 0 0 0
<EXTRAORDINARY> 0 0 0 0
<CHANGES> 0 0 0 0
<NET-INCOME> 44,040,339 32,710,336 16,746,298 5,431,209
<EPS-PRIMARY> 1.10 0.82 0.42 0.14
<EPS-DILUTED> 1.02 0.76 0.39 0.13
<FN>
<F1> The above schedule is restated to reflect the retroactive adoption of SFAS 128.
</FN>
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED STATEMENTS OF THE COMPANY AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<RESTATED>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> FEB-29-1996<F1>
<PERIOD-START> MAR-01-1995
<PERIOD-END> FEB-29-1996
<CASH> 61,047,522
<SECURITIES> 0
<RECEIVABLES> 46,768,169
<ALLOWANCES> 1,064,000
<INVENTORY> 54,235,489
<CURRENT-ASSETS> 169,913,790
<PP&E> 41,722,855
<DEPRECIATION> 11,010,753
<TOTAL-ASSETS> 209,339,849
<CURRENT-LIABILITIES> 36,001,561
<BONDS> 200,000
4,135,480
0
<COMMON> 169,002,808
<OTHER-SE> 209,339,849
<TOTAL-LIABILITY-AND-EQUITY> 302,541,175
<SALES> 307,347,109
<TOTAL-REVENUES> 165,462,039
<CGS> 165,462,039
<TOTAL-COSTS> 0
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 828,899
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 52,934,274
<INCOME-TAX> 20,947,964
<INCOME-CONTINUING> 31,986,310
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 31,986,310
<EPS-PRIMARY> 0.81
<EPS-DILUTED> 0.76
<FN>
<F1> The above schedule is restated to reflect the retroactive adoption of SFAS 128.
</FN>
</TABLE>
