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 June 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 June 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
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (718) 446-1800
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 August 13, 1996
Common Stock 7,833,594
- 1 -
STEVEN MADDEN, LTD.
FORM 10-QSB
QUARTERLY REPORT
PERIOD APRIL 1, 1996 TO JUNE 30, 1996
TABLE OF CONTENTS
PART I- FINANCIAL INFORMATION Page
ITEM 1 Condensed Consolidated Financial Statements:
Consolidated Balance sheet ..................... 3
Consolidated Statements of Operations .......... 4
Consolidated Statements of Changes in
Stockholders' Equity ......................... 5
Consolidated Statement of cash flows ........... 6
Notes to condensed consolidated
financial statements ......................... 7
ITEM 2 Management's discussion and analysis
of financial condition and results of
operations ................................... 8
PART II- OTHER INFORMATION
SIGNATURES ............................................. 14
- 2 -
STEVEN MADDEN, LTD. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
AS AT JUNE 30, 1996
A S S E T S
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . . $ 6,902,676
Accounts receivable (net of allowance for
doubtful accounts of $157,302). . . . . . . . . . . . . . . 2,432,053
Due from factor (net of allowance for
doubtful accounts of $189,000). . . . . . . . . . . . . . . 3,726,092
Note receivable . . . . . . . . . . . . . . . . . . . . . . . 116,667
Inventories . . . . . . . . . . . . . . . . . . . . . . . . . 1,154,670
Prepaid advertising . . . . . . . . . . . . . . . . . . . . . 719,626
Prepaid expenses and other current assets . . . . . . . . . . 361,694
Prepaid taxes . . . . . . . . . . . . . . . . . . . . . . . . 822,771
-----------
Total current assets . . . . . . . . . . . . . . . . . 16,236,249
Note receivable, less current maturities . . . . . . . . . . . . 633,333
-----------
Property and equipment . . . . . . . . . . . . . . . . . . . . . 861,944
-----------
Other assets:
Prepaid advertising . . . . . . . . . . . . . . . . . . . . . 1,400,000
Deferred taxes. . . . . . . . . . . . . . . . . . . . . . . . 218,400
Deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . 83,724
Cost in excess of fair market value (net of
accumulated amortization of $12,109). . . . . . . . . . . . 1,925,391
-----------
Total other assets . . . . . . . . . . . . . . . . . . 3,627,515
-----------
T O T A L. . . . . . . . . . . . . . . . . . . . . . . $21,359,041
===========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Note payable. . . . . . . . . . . . . . . . . . . . . . . . . $ 644,841
Accounts payable and accrued expenses . . . . . . . . . . . . 743,391
Accrued bonuses . . . . . . . . . . . . . . . . . . . . . . . 270,911
Other current liabilities . . . . . . . . . . . . . . . . . . 144,396
-----------
Total current liabilities. . . . . . . . . . . . . . . 1,803,539
-----------
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 . . . . . . . . . . . . . . . . . . . . (392,160)
Retained earnings . . . . . . . . . . . . . . . . . . . . . . 2,425,501
-----------
Total stockholders' equity . . . . . . . . . . . . . . 19,555,502
-----------
T O T A L. . . . . . . . . . . . . . . . . . . . . . . $21,359,041
===========
The accompanying notes to financial statements
are an integral part hereof.
- 3 -
STEVEN MADDEN, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
Three Months Ended Six Months Ended
June 30, June 30,
---------------------------- ----------------------------
1996 1995 1996 1995
------------ ------------ ------------ ------------
Sales ......................................... $ 8,675,685 $ 9,368,813 $ 16,484,012 $ 15,728,247
Cost of sales ................................. 6,608,678 6,031,964 10,935,984 10,354,823
------------ ------------ ------------ ------------
Gross profit .................................. 2,067,007 3,336,849 5,548,028 5,373,424
Other revenue ................................. 264,974 458,860
Operating expenses ............................ (3,120,821) (1,842,629) (5,544,190) (2,951,221)
------------ ------------ ------------ ------------
Income (loss) from operations ................. (788,840) 1,494,220 462,698 2,422,203
Interest income (expense), net ................ 73,551 33,741 174,210 (64,527)
------------ ------------ ------------ ------------
Income (loss) before provision for income taxes (715,289) 1,527,961 636,908 2,357,676
Provision (benefit) for income taxes .......... (284,000) 576,000 261,000 726,000
------------ ------------ ------------ ------------
NET INCOME (LOSS) ............................. $ (431,289) $ 951,961 $ 375,908 $ 1,631,676
============ ============ ============ ============
Net income (loss) per share of common stock:
Primary .................................... $ (.04) $ .15 $ .05 $ .25
============ ============ ============ ============
Weighted average common shares outstanding .... 9,906,444 6,466,507 9,900,212 6,460,524
============ ============ ============ ============
The accompanying notes to financial statements
are an integral part hereof.
- 4 -
STEVEN MADDEN, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Additional Retained Total
Common Stock Paid-in Earnings Unearned Stockholders'
Shares Amount Capital (Deficit) 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
Net income ........................... 375,908 375,908
Amortization of unearned compensation 71,876 71,876
--------- ----------- ----------- ----------- ----------- -----------
BALANCE - JUNE 30, 1996 .............. 7,833,594 $ 783 $17,521,378 $ 2,425,501 $ (392,160) $19,555,502
========= =========== =========== =========== =========== ===========
The accompanying notes to financial statements
are an integral part hereof.
- 5 -
STEVEN MADDEN, LTD. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended
June 30,
--------------------------
1996 1995
----------- -----------
Cash flows from operating activities:
Net income .............................................. $ 375,908 $ 1,631,676
Adjustments to reconcile net income to net cash
provided by (used in) operating activities:
Depreciation and amortization ....................... 106,407 40,263
Deferred compensation ............................... 71,876 0
Provision for bad debts ............................. 185,302 60,061
Deferred rent expense ............................... 7,188 (7,188)
Changes in operating assets and liabilities:
(Increase) in accounts receivable - nonfactored ... (1,751,750) (42,215)
Decrease (increase) in due from factor ............ 406,118 (1,727,971)
Decrease (increase) in inventories ................ 221,718 (782,102)
(Increase) in prepaid expenses and other assets ... (817,918) (364,843)
Increase in accounts payable and accrued expenses . 134,859 123,930
(Decrease) increase in accrued bonuses ............ (324,960) 80,731
(Decrease) increase in other current liabilities .. (20,436) 725,103
(Decrease) in accrued taxes ....................... (531,203)
----------- -----------
Net cash (used in) operating activities ......... (1,936,891) (262,555)
----------- -----------
Cash flows from investing activities:
Purchase of equipment ................................... (105,883) (64,990)
Loans to related party .................................. (50,292)
Acquisition of subsidiary ............................... (1,043,783)
----------- -----------
Net cash (used in) investing activities ......... (1,149,666) (115,282)
----------- -----------
Cash flows from financing activities:
Proceeds from options and warrants exercised ............ 6,342,305 98,050
Proceeds from loans, net ................................ 5,490
Repayment of notes payable assumed in acquisition ....... (476,286)
----------- -----------
Net cash provided by financing
activities .................................... 5,866,019 103,540
----------- -----------
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS ....... 2,779,462 (274,297)
Cash and cash equivalents - beginning of year .............. 4,123,214 2,537,217
----------- -----------
CASH AND CASH EQUIVALENTS - END OF YEAR .................... $ 6,902,676 $ 2,262,920
=========== ===========
The accompanying notes to financial statements
are an integral part hereof.
- 6 -
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
March 31, 1996, and the results of its operations, changes in stockholders'
equity and cash flows for the three months then ended. The results of operations
for the three months ended March 31, 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.
[4] Merger:
On April 1, 1996, the Company entered into an Agreement and Plan of
Merger (the "merger") with Diva International, Inc. ("Diva"). The merger
provides for the purchase of all Diva shares for an initial payment of
$1,000,000 and a subsequent payment of approximately $645,000 to be paid one
year from the closing date of the merger. The subsequent payment may be made in
cash or shares of the Company's common stock. The purchase price may be adjusted
based on the audited net assets as at March 31, 1996 and the subsequent cash
collections on Diva's accounts receivable.
- 7 -
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
--------------------------
Six Months Ended
----------------
June 30
-------
1996 1995
---- ----
Consolidated:
Revenues $16,484,012 100 $15,728,247 100
Cost of Revenues 10,935,984 66.3 10,354,823 65.8
Other Operating Income 458,860 2.8 -- --
Operating Expenses 5,544,190 33.6 2,951,221 18.8
Income from Operations 462,698 2.8 2,422,203 15.4
Interest Expense -- -- -134,347 0.9
Interest Income 174,210 1.1 69,820 0.4
Income Before Income Taxes 636,908 3.9 2,357,676 15.1
Net Income 375,908 2.3 1,631,676 10.4
By Segment:
WHOLESALE
Revenues $14,386,084 100 $14,299,973 100
Cost Of Revenues 9,654,851 67.1 9,382,324 65.6
Operating Expenses 4,285,279 29.8 2,613,960 18.3
Income from Operations 445,954 3.1 2,303,689 16.1
OTHERS
Revenues $ 2,097,928 100 $ 1,428,274 100
Cost of Revenues 1,281,133 61.1 972,499 68.1
Other Operating Income 458,860 21.9 -- --
Operating Expenses 1,258,911 60 337,261 23.6
Income from Operations 16,744 0.8 118,514 8.3
- 8 -
Percentage of Net Revenues
--------------------------
Three Months Ended
------------------
June 30
-------
1996 1995
---- ----
Consolidated:
Revenues $ 8,675,685 100 $ 9,368,813 100
Cost of Revenues 6,608,678 76.2 6,031,964 64.4
Other Operating Income 264,974 3.1 -- --
Operating Expenses 3,120,821 36 1,842,629 19.7
Income [Loss] from Operations -788,840 -9.1 1,494,220 15.9
Interest Expense -- -- -2,105 0.0
Interest Income 73,551 0.8 35,846 0.4
Income Before Income Taxes -715,289 -8.2 1,527,961 16.3
Net Income [Loss] -431,289 -5 951,961 10.2
By Segment:
WHOLESALE
Revenues $ 7,230,766 100 $ 8,746,976 100
Cost Of Revenues 5,631,183 77.9 5,622,278 64.3
Operating Expenses 2,308,996 31.9 1,661,698 19
Income [Loss] from Operations -709,413 -9.8 1,463,000 16.7
OTHERS
Revenues $ 1,444,919 100 $ 621,837 100
Cost of Revenues 977,495 67.7 409,686 65.9
Other Operating Income 264,974 18.3 -- --
Operating Expenses 811,825 56.2 180,931 29.1
Income [Loss] from Operations -79,427 -5.5 31,220 5
- 9 -
RESULTS OF OPERATIONS
Six Months Ended June 30, 1996 Vs. Six Months Ended June 30, 1995
Revenues for the six months ended June 30, 1996 were $16,484,000, or 5% higher
than the $15,728,000 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 approximately remains the same as
percentage of revenues. Adesso-Madden, a wholly owned subsidiary of the Company,
generated a commission of $459,000 in the first six months of 1996.
Selling, general and administrative expenses increased by 88% to $5,544,000 in
1996 from $2,951,000 in 1995. The increase is due primarily to a 79% increase in
payroll, bonuses and related expenses from $1,083,000 in 1995 to $1,935,0000 in
1996, and a 95% increase in selling, advertising, marketing, and designing
expenses from $707,000 in 1995 to $1,381,000 in 1996. In addition, occupancy,
telephone, and utilities expenses increased 155% from $175,000 in 1995 to
$447,000 in 1996. Income from operations for 1996 was $463,000 which represents
a decrease of $1,959,000 from the income from operations of $2,422,000 in 1995.
This decrease resulted from the substantial increase in selling, general and
administrative expenses. The net income for 1996 was $376,000 as compared to net
income of $1,632,000 for the corresponding period of 1995.
Wholesale Division revenues, accounted for 87% or $14,386,000 and 91% or
$14,300,00 of total revenues in 1996 and 1995 respectively. Cost of revenues
increased from 66% in 1995 to 67% in 1996. Operating expenses increased by 64%,
from $2,614,000 in 1995 to $4,285,000 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 $446,000 in 1996 compared
to a wholesale income from operation of $2,304,000 in 1995. This decrease is a
result from the substantial increase in operating expenses.
Revenues from the Retail Division, which accounted for 9% and 5% of total
revenues in 1996 and 1995 respectively, increased from $737,000 in 1995 to
$1,443,000 in 1996. This increase in revenues is due to the Company opening a
second retail store in New York City, in October 1995 which earned revenues of
$673,000 in first six months of 1996. The gross margin from the retail stores
was $678,000 or 47% and $325,000 or 44% in 1996 and 1995 respectively. The
increase in gross margin and gross margin percentage is due to a lower per pair
cost passed through from the wholesale division. Selling, general and
administrative expenses increased to $553,000 or 38% of sales in 1996 from
$218,000 or 30% of sales in 1995. This increase is due to increases in payroll,
payroll related expenses, occupancy, printing and depreciation expenses as a
result of opening a second store. Income from operations from the Retail
Division was $125,000 in 1996 compared to income from operations of $107,000 in
1995. In December 1995 the Company sold Marlboro Leather division which
generated $691,000 of revenues in the first two Quarters of 1995. Revenues from
Diva Acquisition Corp., a wholly owned subsidiary of the Company were $655,000
for the second Quarter of 1996, gross profit was $138,000 and loss from
operations was $195,000.
Three Months Ended June 30, 1996 vs. Three Months Ended June 30, 1995
Revenues for the three months ended June 30, 1996 were $8,676,000 or 7% lower
than the $9,369,000 recorded in the comparable period of 1995. Although demand
for the Company's most popular styles was strong, the
- 10 -
Company was unable to bring in sufficient inventory to meet such demand. Cost of
revenues as percentage of revenues increased to 76% in 1996 as compared to 64%
in 1995. This decrease in revenues and 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 $265,000 in the second
Quarter of 1996.
Selling, general and administrative expenses increased by 69% to $3,121,000 in
1996 from $1,843,.000 in 1995. This increase is primarily due to an increase of
64% in payroll, bonuses and payroll related expenses to $992,000 in 1996 from
$606,000 in 1995, an increase of 157% in selling, advertising, marketing and
designing expenses to $1,128,000 in 1996 from $439,000 in 1995, an increase of
251% in occupancy, telephone and utility costs to $242,000 in 1996 from $69,000
in 1995 and an increase of 157% in consulting fees to $162,000 in 1996 from
$63,000 in 1995.
Loss from operations was $789,000 in 1996 as compared to income from operations
of $1,494,000 for the corresponding period of 1995. Net loss for the 1996 period
was $431,000 as compared to net income from operations of $952,000 for the same
period of 1995. The loss for 1996 resulted primarily from increases in selling,
administrative expenses as noted above and a decrease in revenues and gross
profit.
Revenues from the wholesale division decreased $1,516,000 to $7,231,000 in 1996
from $8,747,000 in 1995 and accounted for 83% and 93% of total revenues in 1996
and 1995, respectively. Cost of revenues as a percentage of revenues increased
to 78% in 1996 from 64% in 1995. Selling, general and administrative expenses
increased by 39% to $2,309,000 in 1996 from $1,662,000 in 1995. Loss from
operations was $709,000 in 1996 as compared to an income of $1,463,000 in 1995.
The loss for 1996 resulted from the decrease in revenues, increase in cost of
revenues as a percentage of revenues and increase in selling, general and
administrative expenses due to the same factors discussed above.
Revenues from the Company's retail stores increased to $790,000 in 1996 from
$402,000 in 1995 and accounted for 9% 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 $345,000 for the three months ended June
30, 1996. The gross margin from the retail stores was $329,000, or 42%, and
$176,000, or 44%, in 1996 and 1995, respectively. The increase in gross margin
is due to a second retail store opened in October 1995 and a lower per pair cost
passed through from the wholesale division. In addition, 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 $260,000, or 33% of sales in 1996 from $116,000, or 29%
of sales in 1995. This increase is due to increase in payroll, payroll
related expenses, occupancy, utilities, printing expenses and depreciation
expenses from opening a second store.
In December 1995 the Company sold Marlboro Leather division whose second Quarter
1995 revenues were
- 11 -
$332,000. Revenues from Diva Acquisition Corp. were $ 655,000 for the second
Quarter of 1996. Gross profit from Diva was $138,000 and loss from operations
was $195,000.
LIQUIDITY AND CAPITAL RESOURCES
The Company has working capital of $14,433,000 at June 30, 1996 which represents
an increase of $7,991,000 in working capital from June 30,1995 due to the
increased profit in 1995 and first Quarter of 1996. Management believes it can
manage the Company's cash flow requirements through its current working capital.
In addition, the exercise of Class "A" Warrants exercised proceeds of $6,342,000
in the six months ended June 30, 1996, has allowed the Company to eliminate the
immediate need for outside financing and reduced the Company's interest costs.
On April 1, 1996, the Company completed the previously announced acquisition of
Diva International, Inc., a privately held, New York-based footwear company that
designs and markets women's fashion footwear under the brand-name "David Aaron."
The purchase price was $1,000,000 in cash and a subsequent payment of $697,000
to be paid one year from the closing date of the merger. The subsequent payment
may be made in shares of the Company's common stock. "David Aaron" brand is sold
through major retail department stores such as Bloomingdales, Nordstorm and
Macy's.
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 35% 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 three month period ended June 30, 1996, operating activities used
$1,937000 of cash. The use of cash arose principally from an increase in
accounts receivable-non factored of $1,752,000, an increase of prepaid expenses
and other assets $818,,000, and decrease in taxes on income of $531,000 which
were offset by an increase in accounts payable and accrued expenses of $135,000,
a decrease in accounts receivable factored of $406,000 and an decrease in
inventory of $222,000. Inventory Purchases have decreased considerably due to
decreased sales volume.
In the third & fourth Quarters of 1996, the Company anticipates utilizing
approximately $242,000 of prepaid advertising expenses.
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 $1,051,000, 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.
- 12 -
INVESTING ACTIVITIES
During the three month period ended June 30, 1996, the Company used cash of
$106,000 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 $697,000 for the
subsequent payment which can be paid in cash or the Company's common stock.
FINANCING ACTIVITIES
During the six month period ending June 30, 1996, 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.
- 13 -
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: August 14, 1996
- 14 -
5
3-MOS
DEC-31-1996
APR-1-1996
JUN-30-1996
6,902,676
0
6,504,447
346,302
1,154,670
16,236,248
1,141,894
279,950
21,359,041
1,803,539
0
0
0
783
19,554,719
21,359,041
8,675,685
8,940,659
6,608,678
6,608,678
3,120,821
49,017
0
(715,289)
(284,000)
(431,289)
0
0
0
(431,289)
(0.037)
(0.035)
