UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-QSB
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1996
------------------------------------------------
(_) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from to
-------------------- -------------------------
For Quarter Ended September 30, 1996 Commission File Number 0-23702
STEVEN MADDEN, LTD.
- - -------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
New York 13-3588231
- - ------------------------------- ------------------------------------
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
52-16 Barnett Avenue, Long Island City, New York 11104
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (718) 446-1800
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Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 of 15 (d) of the Securities and Exchange Act
of 1934 during the preceding 12 months and (2) has been subject to such filing
requirements for the past 90 days.
Yes X No
----- -----
Class Outstanding at October 30, 1996
Common Stock 7,833,594
STEVEN MADDEN, LTD.
FORM 10-QSB
QUARTERLY REPORT
SEPTEMBER 30, 1996
TABLE OF CONTENTS
PART I - FINANCIAL INFORMATION Page
ITEM 1. Condensed Consolidated Financial Statements:
Consolidated Balance sheet------------------------------------ 2
Consolidated Statements of Operations------------------------- 3
Consolidated Statements of Changes in
Stockholders' Equity--------------------------------------- 4
Consolidated Statement of Cash Flows-------------------------- 5
Notes to condensed consolidated
financial statements---------------------------------------- 6
ITEM 2. Management's discussion and analysis
of financial condition and results of
operations-------------------------------------------------- 7
PART II - OTHER INFORMATION
SIGNATURES-------------------------------------------------------------- 13
STEVEN MADDEN, LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
AS AT SEPTEMBER 30, 1996
A S S E T S
-----------
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . $ 5,839,380
Accounts receivable - nonfactored (net of allowance for
doubtful accounts of $269,302) . . . . . . . . . . . . 2,066,539
Due from factor (net of allowance for doubtful accounts
of $133,000) . . . . . . . . . . . . . . . . . . . . . 5,260,450
Note receivable . . . . . . . . . . . . . . . . . . . . . 116,667
Inventories . . . . . . . . . . . . . . . . . . . . . . . 2,087,432
Prepaid advertising . . . . . . . . . . . . . . . . . . . 806,397
Prepaid expenses and other current assets . . . . . . . . 599,680
Prepaid taxes . . . . . . . . . . . . . . . . . . . . . . 518,841
------------
Total current assets . . . . . . . . . . . . . . . 17,295,386
------------
Note receivable, less current maturities . . . . . . . . . . 633,333
------------
Property and equipment (net of accumulated amortization and
depreciation). . . . . . . . . . . . . . . . . . . . . . . 989,430
------------
Other assets:
Prepaid advertising, less current portion . . . . . . . . 1,400,000
Deferred taxes . . . . . . . . . . . . . . . . . . . . . 218,400
Deposits . . . . . . . . . . . . . . . . . . . . . . . . 86,878
Cost in excess of fair market value (net accumulated
amortization) . . . . . . . . . . . . . . . . . . . . . 1,913,282
------------
Total other assets . . . . . . . . . . . . . . . . 3,618,560
------------
T O T A L . . . . . . . . . . . . . . . . . . . . $ 22,536,709
============
LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------
Current liabilities:
Note payable . . . . . . . . . . . . . . . . . . . . . . $ 644,841
Accounts payable and accrued expenses . . . . . . . . . . 1,361,576
Accrued bonuses . . . . . . . . . . . . . . . . . . . . . 365,908
Other current liabilities . . . . . . . . . . . . . . . . 354,809
------------
Total current liabilities . . . . . . . . . . . . 2,727,134
------------
Commitments and contingencies
Stockholders' equity:
Common stock - $.0001 par value, 10,000,000 shares
authorized, 7,833,594 issued and outstanding . . . . . 783
Additional paid-in capital . . . . . . . . . . . . . . . 17,521,378
Unearned compensation . . . . . . . . . . . . . . . . . . (356,222)
Retained earnings . . . . . . . . . . . . . . . . . . . . 2,908,136
Treasury stock at cost (55,000 shares) . . . . . . . . . (264,500)
------------
Total stockholders' equity . . . . . . . . . . . . 19,809,575
------------
T O T A L . . . . . . . . . . . . . . . . . . . . $ 22,536,709
============
The accompanying notes to financial statements
are an integral part hereof.
- 2 -
STEVEN MADDEN, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Nine Months Ended
September 30, September 30,
------------------------------ ------------------------------
1996 1995 1996 1995
------------ ------------ ------------ ------------
Sales . . . . . . . . . . . . $ 13,107,319 $ 10,164,804 $ 29,591,329 $ 25,893,051
------------ ------------ ------------ ------------
Cost of sales . . . . . . . . 8,878,115 6,705,579 19,814,098 17,060,402
------------ ------------ ------------ ------------
Gross profit . . . . . . . . 4,229,204 3,459,225 9,777,231 8,832,649
Other revenue . . . . . . . . 263,559 722,418
Operating expenses . . . . . (3,761,035) (1,797,613) (9,305,224) (4,748,834)
------------ ------------ ------------ ------------
Income from operations . . . 731,728 1,661,612 1,194,425 4,083,815
Interest income (expense),
net . . . . . . . . . . . 72,908 (31,828) 247,118 (96,355)
------------ ------------ ------------ ------------
Income before provision for
income taxes . . . . . . . 804,636 1,629,784 1,441,543 3,987,460
Provision for income taxes . 322,000 619,126 583,000 1,345,126
------------ ------------ ------------ ------------
NET INCOME . . . . . . . . . $ 482,636 $ 1,010,658 $ 858,543 $ 2,642,334
============ ============ ============ ============
Net income per share of
common stock:
Primary . . . . . . . . $ .06 $ .11 $ .11 $ .32
============ ============ ============ ============
Weighted average common
shares outstanding . . . . 10,059,787 10,067,133 9,973,924 9,632,758
============ ============ ============ ============
The accompanying notes to financial statements
are an integral part hereof.
- 3 -
STEVEN MADDEN, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY
Common Stock Additional Total
----------------- Paid-in Retained Treasury Unearned Stockholders'
Shares Amount Capital Earnings Stock Compensation Equity
-------- ------ ----------- ---------- --------- ------------ -----------
Balance - December 31, 1995 . . . . . . . . 6,415,776 $642 $11,179,214 $2,049,593 $(464,036) $12,765,413
Exercise of stock options and warrants . . 1,417,818 141 6,342,164 6,342,305
Common stock purchased for treasury . . . . $(264,500) (264,500)
Net income . . . . . . . . . . . . . . . . 858,543 858,543
Amortization of unearned compensation . . . 107,814 107,814
--------- ---- ----------- ---------- --------- --------- -----------
BALANCE - SEPTEMBER 30, 1996 . . . . . . . 7,833,594 $783 $17,521,378 $2,908,136 $(264,500) $(356,222) $19,809,575
========= ==== =========== ========== ========= ========= ===========
The accompanying notes to financial statements
are an integral part hereof.
- 4 -
STEVEN MADDEN, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended
September 30,
--------------------------
1996 1995
----------- -----------
Cash flows from operating activities:
Net income . . . . . . . . . . . . . . . . . . . . . . . $ 858,543 $ 2,642,334
Adjustments to reconcile net income to net cash
(used in) operating activities:
Depreciation and amortization . . . . . . . . . . . . 168,545 71,154
Deferred compensation . . . . . . . . . . . . . . . . 107,814 75,026
Provision for bad debts . . . . . . . . . . . . . . . 241,302 101,105
Deferred rent expense . . . . . . . . . . . . . . . . 13,714 (10,781)
Deferred taxes . . . . . . . . . . . . . . . . . . . (72,688)
Excess of fair market value over option price on
nonqualified stock options granted . . . . . . . . 21,250
Changes in operating assets and liabilities:
(Increase) in accounts receivable - nonfactored . . (1,497,236) (413,980)
(Increase) in due from factor . . . . . . . . . . . (1,073,240) (3,136,590)
(Increase) in inventories . . . . . . . . . . . . . (711,044) (370,328)
(Increase) decrease in prepaid expenses and
other assets . . . . . . . . . . . . . . . . . . (841,900) 122,777
Increase in accounts payable and accrued expenses . 753,044 146,932
(Decrease) increase in accrued bonuses . . . . . . (229,963) 177,259
Increase in other current liabilities . . . . . . . 183,452 197,492
(Decrease) in accrued taxes . . . . . . . . . . . . (531,203)
----------- -----------
Net cash (used in) operating activities . . . (2,558,172) (449,038)
----------- -----------
Cash flows from investing activities:
Purchase of equipment . . . . . . . . . . . . . . . . . . (283,398) (217,285)
Loans to related party . . . . . . . . . . . . . . . . . (224,038)
Acquisition of subsidiary . . . . . . . . . . . . . . . . (1,043,783)
----------- -----------
Net cash (used in) investing activities . . . (1,327,181) (441,323)
----------- -----------
Cash flows from financing activities:
Proceeds from options and warrants exercised . . . . . . 6,342,305 350,300
Proceeds from loans, net . . . . . . . . . . . . . . . . 235,451
Repayment of notes payable assumed in acquisition . . . . (476,286)
Purchase of treasury stock . . . . . . . . . . . . . . . (264,500)
----------- -----------
Net cash provided by financing activities . . 5,601,519 585,751
----------- -----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS . . . . 1,716,166 (304,610)
Cash and cash equivalents - beginning of period . . . . . . 4,123,214 2,537,217
----------- -----------
CASH AND CASH EQUIVALENTS - END OF PERIOD . . . . . . . . . $ 5,839,380 $ 2,232,607
=========== ===========
The accompanying notes to financial statements
are an integral part hereof.
- 5 -
STEVEN MADDEN, LTD. AND SUBSIDIARIES
NOTES TO FINANCIAL STATEMENTS
[1] Basis of Reporting:
The accompanying unaudited financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-QSB and Item
310(b) of Regulation S-B. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. In the opinion of management, such
statements include all adjustments (consisting only of normal recurring items)
which are considered necessary for a fair presentation of the financial
position of the Company at September 30, 1996, and the results of its
operations, changes in stockholders' equity and cash flows for the three months
and nine months then ended. The results of operations for the nine months ended
September 30, 1996 are not necessarily indicative of the operating results for
the full year. It is suggested that these financial statements be read in
conjunction with the financial statements and related disclosures for the year
ended December 31, 1995 included in the Steve Madden, Ltd. Form 10-KSB.
[2] Inventories:
Inventories, which consist of finished goods, are stated at
the lower of cost (first-in, first-out method) or market.
[3] Net income per share of common stock:
Net income per share of common stock is computed based on the
weighted average number of shares outstanding during the period, utilizing the
modified treasury stock method. Common stock equivalents are included if their
effect is dilutive.
- 6 -
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS.
- - -------------------------------------------------------------------------------
The following discussion of the Company's financial condition and results of
operations should be read in conjunction with the Financial Statements and
Notes thereto appearing elsewhere in this document.
The following table sets forth information on operations for the periods
indicated:
Percentage of Net Revenues
Nine Months Ended
September 30
--------------------------------------------
1996 1995
-------------------- --------------------
Consolidated:
Revenues $29,591,329 100 $25,893,051 100
Cost of Revenues 19,814,098 67 17,060,402 65.9
Other Operating Income 722,418 2.4 -- --
Operating Expenses 9,305,224 31.4 4,748,834 18.3
Income from Operations 1,194,425 4 4,083,815 15.8
Interest Expense -- -- (201,443) (.8)
Interest Income 247,118 0.8 105,088 0.4
Income Before Income Taxes 1,441,543 4.8 3,987,460 15.4
Net Income 858,543 2.9 2,642,334 10.2
By Segment:
WHOLESALE
Revenues $25,503,287 100 $23,783,774 100
Cost Of Revenues 17,201,489 67.4 15,572,609 65.5
Operating Expenses 7,106,136 27.9 4,223,674 17.8
Income from Operations 1,195,662 4.7 3,987,491 16.8
OTHERS
Revenues $4,088,042 100 $1,151,862 100
Cost of Revenues 2,612,609 63.9 631,626 54.8
Other Operating Income 722,418 17.7 -- --
Operating Expenses 2,199,089 53.8 341,036 29.6
Income [Loss] from Operations (1,238) 0 179,200 15.6
- 7 -
Percentage of Net Revenues
Three Months Ended
September 30
--------------------------------------------
1996 1995
-------------------- --------------------
Consolidated:
Revenues $13,107,319 100 $10,164,804 100
Cost of Revenues 8,878,115 67.7 6,705,579 66
Other Operating Income 263,559 2 -- --
Operating Expenses 3,761,035 28.7 1,797,613 17.7
Income from Operations 731,728 5.6 1,661,612 16.3
Interest Expense -- -- (67,096) (.7)
Interest Income 72,908 0.6 35,268 0.3
Income Before Income Taxes 804,636 6.1 1,629,784 16
Net Income 482,636 3.7 1,010,658 9.9
By Segment:
WHOLESALE
Revenues $11,117,203 100 $9,483,801 100
Cost Of Revenues 7,546,638 67.9 6,190,285 65.3
Operating Expenses 2,820,857 25.4 1,609,714 17
Income from Operations 749,708 6.7 1,683,802 17.8
OTHERS
Revenues $1,990,116 100 $441,927 100
Cost of Revenues 1,331,477 66.9 219,501 49.7
Other Operating Income 263,559 13.2 -- --
Operating Expenses 940,179 47.2 122,824 27.8
Income [Loss] from Operations (17,981) (.9) 72,602 16.4
- 8 -
RESULTS OF OPERATIONS
Nine Months Ended September 30, 1996 Vs. Nine Months Ended September 30, 1995
Revenues for the nine months ended September 30, 1996 were $29,591,000, or 14%
higher than the $25,893,000 recorded in the comparable period of 1995. This
increase in revenues, which are derived from product sales, is due to several
factors. Management feels that "Steve Madden" as a brand name is increasing in
popularity, thus reorders and retail sales have increased, and new accounts
continue to be added. Cost of revenues increased 1% from 66% of revenues in
1995 to 67% of revenues in 1996, primarily as a result of a higher level of
markdowns experienced in the second quarter of 1996. Adesso-Madden, a wholly
owned subsidiary of the Company, generated a commission of $722,000 for the
first nine months of 1996. The Company's newly acquired subsidiary, Diva, had
sales of $1,830,000 for the six month period from April 1,1996 (date of
acquisition) through September 30, 1996, gross profit was $437,000 and loss
from operations was $355,000.
Selling, general and administrative expenses increased by 96% to $9,305,000 in
1996 from $4,749,000 in 1995. The increase is due primarily to a 98% increase
in payroll, bonuses and related expenses from $1,760,000 in 1995 to $3,487,000
in 1996, and a 127% increase in selling, advertising, marketing, and designing
expenses from $1,422,000 in 1995 to $3,230,000 in 1996. In addition, occupancy,
telephone, and utilities expenses increased 219% from $215,000 in 1995 to
$685,000 in 1996. Income from operations for 1996 was $1,194,000 which
represents a decrease of $2,890,000 from the income from operations of
$4,084,000 in 1995. This decrease resulted from the higher cost of revenues as
a percent of sales and from the substantial increase in selling, general and
administrative expenses. The net income for 1996 was $859,000 as compared to
net income of $2,642,000 for the corresponding nine month period of 1995.
Wholesale Division revenues, accounted for 86% or $25,503,000 and 92% or
$23,784,000 of total revenues in 1996 and 1995 respectively. Wholesale Division
cost of revenues as a percent of sales increased from 66% in 1995 to 67% in
1996. Operating expenses increased by 68%, from $4,224,000 in 1995 to
$7,106,000 in 1996. This increase is due to an increase in payroll and payroll
related expenses due to the hiring of additional personnel and an increase in
occupancy expenses due to additional warehouse space needed for expanding
inventory and showroom space as part of an aggressive sales approach. Wholesale
income from operations was $1,196,000 in 1996 compared to $3,987,000 in 1995.
This decrease is a result of the higher cost of revenues and from the
substantial increase in operating expenses.
Revenues from the Retail Division, which accounted for 4% and 7% of total
revenues in 1995 and 1996 respectively, increased from $1,152,000 in 1995 to
$2,258,000 in 1996. This increase in revenues is due to the Company's opening
of a second retail store in New York City, in October 1995 which earned
revenues of $1,034,000 in first nine months of 1996. The gross margin from the
retail stores was $1,038,000 or 46% and $520,000 or 45% in 1996 and 1995
respectively. The increase in gross margin and gross margin percentage is due
to a lower per pair cost being passed through from the wholesale division.
Selling, general and administrative expenses increased to $831,000 or 37% of
sales in 1996 from $341,000 or 30% of sales in 1995. This increase is due to
increases in payroll and related expenses, occupancy, printing and depreciation
expenses as a result of opening a second store. Income from operations from the
Retail Division was $207,000 in 1996 compared to income from operations of
$179,000 in 1995. In December 1995 the Company sold its Marlboro Leather
division which generated $957,000 of revenues during the nine months of 1995.
- 9 -
Three Months Ended September 30, 1996 vs. Three Months Ended September 30, 1995
Revenues for the three months ended September 30, 1996 were $13,107,000 or 29%
higher than the $10,165,000 recorded in the comparable period of 1995. Cost of
revenues as percentage of revenues increased to 68% in 1996 as compared to 66%
in 1995. This increase in cost of revenues is due to mark-down prices for
allowances to customers. Adesso-Madden, a wholly owned subsidiary of the
Company, generated a commission of $264,000 in the third Quarter of 1996. Diva
had sales of $1,176,000 in the third Quarter of 1996, gross profit was $299,000
and loss from operations was $161,000. In December 1995 the Company sold
Marlboro Leather division whose third Quarter 1995 revenues were $465,000.
Selling, general and administrative expenses increased by 109% to $3,761,000 in
1996 from $1,798,000 in 1995. This increase is primarily due to an increase of
110% in payroll, bonuses and payroll related expenses to $1,420,000 in 1996
from $676,000 in 1995, an increase of 139% in selling, advertising, marketing
and designing expenses to $1,451,000 in 1996 from $607,000 in 1995, an increase
of 176% in occupancy, telephone and utility costs to $232,000 in 1996 from
$84,000 in 1995.
Income from operations was $732,000 in 1996 as compared to $1,662,000 for the
corresponding period of 1995. Net income for the 1996 period was $483,000 as
compared to net income of $1,011,000 for the same period of 1995. The decline
in net income is primarily a result of the increase in cost of revenues as a
percentage of revenues and of the increases in administrative expenses as noted
above.
Revenues from the wholesale division increased 17% to $11,117,000 in 1996 from
$9,484,000 in 1995 and accounted for 85% and 93% of total revenues in 1996 and
1995, respectively. Cost of revenues as a percentage of revenues increased to
68% in 1996 from 65% in 1995. Selling, general and administrative expenses
increased by 75% to $2,821,000 in 1996 from $1,610,000 in 1995. Income from
operations was $750,000 in 1996 as compared to income from operations of
$1,684,000 in 1995. The lower net income for 1996 resulted from the increase in
cost of revenues as a percentage of revenues and the increase in selling,
general and administrative expenses as discussed above.
Revenues from the Company's retail stores increased to $815,000 in 1996 from
$415,000 in 1995 and accounted for 6% and 4% of total revenues in 1996 and
1995, respectively. The Company opened a second retail store in New York City
in October 1995 which earned revenues of $359,000 for the three months ended
September 30, 1996. The gross margin from the retail stores was $360,000, or
44%, and $195,000 or 47%, in 1996 and 1995, respectively. In 1996 the retail
stores sold Steve Madden merchandise, which proved to be very popular, as well
as other brands. Approximately 5% of the revenues earned by the retail stores
are from sales of other brands. Selling, general and administrative expenses
increased to $278,000 in 1996 from $123,000 in 1995. This increase in expenses
is due to increases in payroll, payroll related expenses, occupancy, utilities,
printing expenses and depreciation expenses from opening a second store.
LIQUIDITY AND CAPITAL RESOURCES
The Company has working capital of $14,568,000 at September 30, 1996 which
represents an increase of $6,771,000 in working capital from September 30,1995.
Management believes it can manage the Company's cash flow requirements through
its current working capital. In addition, the Company received proceeds of
$6,342,000 from the exercise of Class "A" Warrants in the nine months ended
September 30, 1996, which has
- 10 -
allowed the Company to eliminate the immediate need for outside financing and
reduced the Company's interest costs.
The Company's customers consist principally of department stores and specialty
stores, including shoe boutiques. Presently, the Company sells approximately
sixty percent (60%) of its products to department stores, including Federated
Stores (Bloomingdales, Burdines, Macy's East and Macy's West) and approximately
forty percent (40%) to specialty stores, including shoe boutiques. As a result
of the merger between Federated Stores and R.H. Macy and Company, Federated
Stores presently accounts for approximately 25% of the Company's sales. As a
result, the loss of Federated Stores as a customer could have a material
adverse effect on the Company's business.
OPERATING ACTIVITIES
During the nine month period ended September 30, 1996, operating activities
used $2,558,000 of cash. The use of cash arose principally from an increase in
accounts receivable-non factored of $1,497,000, an increase in accounts
receivable factored of $1,073,000, an increase in inventories of $711,000, an
increase of prepaid expenses and other assets $842,,000, decrease in taxes on
income of $531,000, an increase in accounts payable and accrued expenses of
$753,000, an increase in other current liabilities of $183,000, and a decrease
in accrued bonuses of $230,000. Inventory purchases have increased considerably
due to increased sales volume.
The Company has lease agreements for office, warehouse, and retail space,
expiring at various times through 2007. Future obligations under these lease
agreements total $4,500,000 with an annual lease commitment of $635,000.
The company has employment agreements with various officers currently providing
for aggregate annual salaries of approximately $1,295,000, subject to annual
bonuses and annual increases as may be determined by the Company's Board of
Directors. In addition, as part of the employment agreements, the Company is
committed to pay incentive bonuses based on sales, net income, or net income
before interest and taxes to three officers.
The Company continues to increase its supply of products from foreign
manufacturers, the majority of which are located in Brazil and Mexico. Although
the Company has not entered into long-term manufacturing contracts with any of
these foreign companies, the Company believes that a sufficient number of
alternative sources exist outside of the United States for the manufacture of
its product, if current suppliers need to be replaced. In addition, because the
Company deals in U.S. currency for all transactions and intends to continue to
do so, the Company believes there will be no foreign exchange considerations.
INVESTING ACTIVITIES
During the nine month period ended September 30, 1996, the Company used cash of
$283,000 to acquire equipment and make leasehold improvements on new office,
retail and warehouse space. Additionally, the Company made an initial payment
of $1,000,000 to the owners of Diva International, inc. to acquire all the
outstanding common stock of Diva. A note has been issued for $645,000 for the
subsequent payment which can be paid in cash or the Company's common stock.
- 11 -
FINANCING ACTIVITIES
During the nine month period ending September 30, 1996, the Company purchased
treasury stock of $265,000 and the Company received $6,342,000 from Class "A"
warrants and options exercised. In connection with the acquisition of Diva
International, Inc., the Company has a note payable to the former owners in the
amount of $645,000. Additionally, the Company repaid $476,000 on a note assumed
in the acquisition.
INFLATION
The Company does not believe that inflation has had a material adverse effect
on sales or income during the past several years. Increases in supplies or
other operating costs could adversely affect the Company's operations; however,
the Company believes it could increase prices to offset increases in costs of
goods sold or other operating costs.
- 12 -
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report on Form 10-QSB to be signed on its
behalf by the undersigned thereunto duly authorized.
STEVE MADDEN, LTD
/s/ Arvind Dharia
---------------------------------
Arvind Dharia
Chief Financial Officer
DATE: November 4, 1996
- 13 -
5
9-MOS
DEC-31-1996
SEP-30-1996
5,839,380
0
2,335,841
209,302
2,087,432
17,295,386
989,430
0
22,536,709
2,727,134
0
0
0
783
19,808,792
22,536,709
29,591,329
30,560,865
19,814,098
9,305,224
0
0
0
1,441,543
583,000
858,543
0
0
0
858,543
.11
.11
