-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, A0jVf4tg7X1nNSlozsoVrjtT6uBtTBN07UG77v50A6DAJsZegrWBf7GqMMX3d1hZ Dzx/0A62oL+UN2x7g3CdNA== 0000914190-00-000010.txt : 20000202 0000914190-00-000010.hdr.sgml : 20000202 ACCESSION NUMBER: 0000914190-00-000010 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991130 FILED AS OF DATE: 20000112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRST TEAM SPORTS INC CENTRAL INDEX KEY: 0000820242 STANDARD INDUSTRIAL CLASSIFICATION: [3949] IRS NUMBER: 411545748 STATE OF INCORPORATION: MN FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 000-16442 FILM NUMBER: 505870 BUSINESS ADDRESS: STREET 1: 1201 LUND BLVD CITY: ANOKA STATE: MN ZIP: 55303 BUSINESS PHONE: 6127804454 MAIL ADDRESS: STREET 1: 1201 LUND BLVD CITY: ANOKA STATE: MN ZIP: 55303-1092 10-Q 1 FORM 10-Q FOR THIRD QUARTER SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q Quarterly Report Under Section 13 or 15(d) of the Securities Exchange Act of 1934 For Quarter Ended: Commission File No.: November 30, 1999 0-16442 FIRST TEAM SPORTS, INC. (Exact name of Registrant as specified in its charter) Minnesota 41-1545748 (State or other jurisdiction (I.R.S. Employer of incorporation or organization) Identification No.) 1201 Lund Boulevard Anoka, Minnesota 55303 (Address of principal executive offices) Registrant's telephone number, including area code: (612) 576-3500 -------------------------------------- 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_____ --------------------------------------- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date: 5,852,188 shares of Common Stock, $.01 par value per share, outstanding as of January 12, 2000. PART I FINANCIAL INFORMATION Item 1. Financial Statements FIRST TEAM SPORTS, INC. CONSOLIDATED BALANCE SHEETS November 30, 1999 and February 28, 1999
November 30, February 28, ASSETS 1999 1999 ------------ ------------ (Unaudited) CURRENT ASSETS Cash and cash equivalents $ 1,562,222 $ 723,574 Receivables: Trade, less allowance for doubtful accounts of $760,000 at November 30, 1999 and $642,000 at February 28, 1999 10,582,973 12,284,005 Refundable income taxes 199,251 1,136,858 Inventories 11,604,643 10,047,020 Prepaid expenses 691,132 839,777 Deferred income taxes 837,000 1,175,000 ------------ ------------ Total current assets 25,477,221 26,206,234 PROPERTY AND EQUIPMENT Land 600,000 600,000 Building 4,988,680 4,988,680 Production equipment 2,335,732 2,278,231 Office furniture and equipment 1,907,835 1,825,257 Warehouse equipment 942,075 937,677 Vehicles 99,180 104,380 ------------ ------------ 10,873,502 10,734,225 Less accumulated depreciation (4,185,366) (3,316,390) ------------ ------------ 6,688,136 7,417,835 DEFERRED INCOME TAXES 2,325,000 1,988,000 OTHER ASSETS License agreements, less accumulated amortization of $3,949,000 at November 30, 1999 and $3,687,000 at February 28, 1999 1,418,034 1,680,024 Goodwill, less accummulated amortization of $402,000 at November 30, 1999 and $329,000 at February 28, 1999 1,046,602 1,119,197 Other 654,448 723,104 ------------ ------------ 3,119,084 3,522,325 ------------ ------------ $ 37,609,441 $ 39,134,394 ============ ============
See accompanying notes. FIRST TEAM SPORTS, INC. CONSOLIDATED BALANCE SHEETS (CONTINUED) November 30, 1999 and February 28, 1999
November 30, February 28, LIABILITIES AND SHAREHOLDERS' EQUITY 1999 1999 ------------ ------------ (Unaudited) CURRENT LIABILITIES Notes payable to bank $ 2,264,948 $ 2,525,000 Current maturities of long-term debt 833,237 1,305,763 Accounts payable, trade 4,086,500 3,692,759 Accrued expenses 779,232 1,311,043 ------------ ------------ Total current liabilities 7,963,917 8,834,565 LONG-TERM DEBT, less current maturities 5,791,474 5,576,967 Deferred income taxes 194,000 195,000 DEFERRED REVENUE 600,000 600,000 SHAREHOLDERS' EQUITY Common Stock, par value $.01 per share; authorized 10,000,000 shares; issued and outstanding 5,852,188 shares at November 30, 1999, and 5,803,848 February 28, 1999 58,522 58,039 Additional paid-in capital 9,910,091 9,825,240 Retained earnings 13,851,246 14,647,756 Accumulated other comprehensive loss (759,809) (603,173) ------------ ------------ 23,060,050 23,927,862 ------------ ------------ $ 37,609,441 $ 39,134,394 ============ ============
See accompanying notes. FIRST TEAM SPORTS, INC. CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
Three months ended Nine months ended November 30, November 30, 1999 1998 1999 1998 ------------ ------------ ------------ ------------ Net sales $ 9,575,365 $ 7,566,638 $ 30,900,446 $ 31,920,886 Cost of goods sold 7,159,744 5,566,265 22,211,351 30,473,059 ------------ ------------ ------------ ------------ Gross profit 2,415,621 2,000,373 8,689,095 1,447,827 ------------ ------------ ------------ ------------ Operating expenses: Selling 943,483 845,808 3,192,789 3,625,962 General and administrative 1,935,576 1,789,910 5,929,599 5,762,562 ------------ ------------ ------------ ------------ 2,879,059 2,635,718 9,122,388 9,388,524 ------------ ------------ ------------ ------------ Operating loss (463,438) (635,345) (433,293) (7,940,697) Interest expense (274,985) (178,713) (713,728) (859,663) ------------ ------------ ------------ ------------ Loss before income taxes (738,423) (814,058) (1,147,021) (8,800,360) Income taxes 285,559 237,042 350,511 2,921,345 ------------ ------------ ------------ ------------ Net loss for the period $ (452,864) $ (577,016) $ (796,510) $ (5,879,015) ============ ============ ============ ============ Net loss per share: Basic ($ 0.08) ($ 0.10) ($ 0.14) ($ 1.01) Average Shares Outstanding used in computation of net loss per share: Basic 5,852,188 5,797,385 5,832,057 5,793,951
See accompanying notes FIRST TEAM SPORTS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS For Nine Months Ended November 30, 1999 and 1998 (Unaudited)
November 30, November 30, CASH FLOWS FROM OPERATING ACTIVITIES 1999 1998 ------------ ------------ Net Loss $ (796,510) $ (5,879,015) Adjustments required to reconcile net loss to net cash provided by operating activities: Depreciation 869,810 947,088 Amortization 432,290 726,052 Deferred income taxes -- -- Change in assets and liabilities: Receivables 1,552,159 1,746,900 Inventories (1,552,755) 12,933,905 Prepaid expenses 148,770 174,532 Accounts payable 395,683 (973,549) Accrued expenses (525,404) 13,286 Income taxes 942,156 (2,370,578) ------------ ------------ Net cash provided by operating activities 1,466,199 7,318,621 ------------ ------------ CASH FLOWS FROM INVESTING ACTIVITIES Purchase of property and equipment (147,364) (303,456) Other -- (262,255) ------------ ------------ Net cash used in investing activities (147,364) (565,711) ------------ ------------ CASH FLOWS FROM FINANCING ACTIVITIES Net payments on short-term borrowings (260,052) (6,530,000) Proceeds on long-term borrowings 4,500,000 262,760 Principal payments on long-term borrowings (4,757,269) (826,966) Net proceeds from exercise of stock options 85,334 11,312 ------------ ------------ Net cash used in financing activities (431,987) (7,082,894) ------------ ------------ Increase (decrease) in cash and cash equvalents 886,848 (329,984) Effect of foreign currency translation (48,200) (29,918) Cash and cash equivalents: Beginning of period 723,574 1,869,545 ------------ ------------ End of period $ 1,562,222 $ 1,509,643 ============ ============
See accompanying notes FIRST TEAM SPORTS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) NOTE 1. The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. 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, all adjustments (consisting only of normal recurring accruals) necessary for a fair presentation have been included. The operating results for the period ended November 30, 1999 are not necessarily indicative of the operating results to be expected for the full fiscal year. For further information, refer to the financial statements and footnotes thereto included in the Company's annual report or Form 10-K for the year ended February 28, 1999. NOTE 2. As of March 1, 1998, the Company adopted Financial Accounting Standards Board Statement No. 130 Report Comprehensive Income ("Statement 130"). Statement 130 establishes new rules for the reporting and display of comprehensive income and its components; however, the adoption of this statement had no impact on the Company's net income or shareholders' equity. Statement 130 requires the Company's foreign currency translation, which prior to adoption was reported separately in shareholders' equity, to be included in other comprehensive income. During the quarters ended November 30, 1999 and 1998, total comprehensive loss amounted to $($393,073) and ($405,940) respectively. During the nine-month period ended November 30, 1999 and 1998, total comprehensive loss amounted to ($953,146) and ($6,309,189) respectively. NOTE 3.
Basic EPS Diluted EPS 1999 1998 1999 1998 ------- ------- ------- ------- (in thousands, except per share data) Three Months Ended November 30 Net Loss ($ 453) ($ 577) ($ 453) ($ 577) ======= ======= ======= ======= Weighted average common Shares outstanding 5,852 5,797 5,852 5,797 Stock options -- -- -- -- ------- ------- ------- ------- Total common equivalent Shares outstanding 5,852 5,797 5,852 5,797 ======= ======= ======= ======= Net Loss per share ($ .08) ($ .10) ($ .08) ($ .10) Nine Months Ended November 30 Net Loss ($ 797) ($5,879) ($ 797) ($5,879) ======= ======= ======= ======= Weighted average common Shares outstanding 5,832 5,794 5,832 5,794 Stock options -- -- -- -- ------- ------- ------- ------- Total common equivalent Shares outstanding 5,832 5,794 5,832 5,794 ======= ======= ======= ======= Net Loss per share ($ .14) ($ 1.01) ($ .14) ($ 1.01)
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations RESULTS OF OPERATIONS Net Sales. Net sales were $9.6 million in the third quarter of fiscal 2000, an increase of 27% over the comparable quarter of fiscal 1999 when sales were $7.6 million. Net sales for the first nine months of fiscal 2000 were $30.9 million, compared to $31.9 million for the first nine months of fiscal 1999, a decrease of 3%. In-line skate sales volume increases combined with an increase in the overall average selling price of in-line skates lines were the principal factors in the Company's net sales improvement in the third quarter fiscal 2000. The slight decline in net sales for the nine month period is the result of an increase in net sales of the Company's Ultra Wheels and Hespeler brands being offset by a greater decrease in sales of the Company's Skate Attack brand. The Company's product groups consist primarily of in-line skates; in-line accessories and parts (primarily protective wear and replacement wheels and bearings); ice hockey sticks and ice hockey protective wear and accessories. Within the product groups, the Company maintains Ultra Wheels, Skate Attack, Heavy and Third World in-line product lines and a Hespeler ice hockey line. The Ultra Wheels, Heavy and Third World lines consist of higher quality and higher priced products that are targeted for the specialty and sporting goods chain store customers. The Skate Attack line consists of lower priced products for the mass merchant customers. The Hespeler ice hockey line consists of high quality products that are targeted primarily at the specialty and sporting goods chain stores. A breakdown and analysis of the Company's net sales by main product lines is as follows:
Third Quarter ----------------------------------------------------------- (amount in millions) Fiscal 2000 Fiscal 1999 ----------- ----------- Amount % Amount % Change ------------ ----------- ----------- ----------- ----------- In-line Skates $6.9 71.9% $4.9 64.5% 40.8% In-line Accessories and Parts 1.1 11.5% 1.1 14.5% --- Ice Hockey Sticks 0.6 6.2% 0.4 5.3% 50.0% Ice Hockey Protective and Access. 1.0 10.4% 1.2 15.8% (16.7%) ------------ ----------- ----------- ----------- ----------- Total Net Sales $9.6 100.0% $7.6 100.0% 26.3% ============ =========== =========== =========== =========== First Nine Months ----------------------------------------------------------- (amount in millions) Fiscal 2000 Fiscal 1999 ----------- ----------- Amount % Amount % Change ------------ ----------- ----------- ----------- ----------- In-line Skates $21.1 68.3% $22.9 71.8% (7.9%) In-line Accessories and Parts 3.7 12.0% 4.3 13.5% (14.0%) Ice Hockey Sticks 2.2 7.1% 1.8 5.6% 22.2% Ice Hockey Protective and Access. 3.9 12.6% 2.9 9.1% 34.5% ------------ ----------- ----------- ----------- ----------- Total Net Sales $30.9 100.0% $31.9 100.0% (3.1%) ============ =========== =========== =========== ===========
The Company distributes products to numerous countries worldwide. A geographic breakdown of the Company's net sales is as follows:
Third Quarter ----------------------------------------------------------- (amount in millions) Fiscal 2000 Fiscal 1999 ----------- ----------- Amount % Amount % Change ------------ ----------- ----------- ----------- ----------- Domestic $8.2 85.4% $5.6 73.7% 46.4% Canada 0.7 7.3% 1.0 13.2% (30.0%) Europe 0.5 5.2% 0.5 6.6% --- Other International 0.2 2.1% 0.5 6.6% (60.0%) ------------ ----------- ----------- ----------- ----------- Total Net Sales $9.6 100.0% $7.6 100.0% 26.3% ============ =========== =========== =========== =========== First Nine Months ----------------------------------------------------------- (amount in millions) Fiscal 2000 Fiscal 1999 ----------- ----------- Amount % Amount % Change ------------ ----------- ----------- ----------- ----------- Domestic $19.5 63.1% $19.4 60.8% 0.5% Canada 8.3 26.9% 8.4 26.3% (1.2%) Europe 2.2 7.1% 3.1 9.7% (29.0%) Other International 0.0 2.9% 1.0 3.1% (10.0%) ----------- ----------- ============ =========== =========== Total Net Sales $30.9 100.0% $31.9 100.0% (3.1%) ============ =========== =========== =========== ===========
Several factors contributed to the Company's sales performance in the third quarter and nine-month period of fiscal 2000. The increase in net sales in the third quarter was primarily in the domestic sales, and is the result of increased product placements with the large national sporting goods chains ("big box" retailers) and the independent local and regional sporting goods chains. The decrease in net sales for the nine-month period was due to sales decreases of the Company's in-line products, primarily in Europe. The slight decrease in North America was the result of a loss of product placements with mass merchant distribution channels. This reflects a continuation of mass merchant reduction in branded selections as well as a continued decline in the average price of in-line skates. The decrease in European sales was primarily the result of continued competitive pressures in the European in-line skate market and in-line skate customers continuing to buy direct from Pacific Rim manufacturers. The increase in the sales of the Hespeler Hockey brand was primarily due to the growing acceptance of the brand in both the US and Canadian markets. While the Company believes there are some positive signs that market conditions in the in-line industry are improving and that the Company is improving its market share, both the national and international markets continue to be very competitive and under extreme price competition. Gross Margin. As a percentage of net sales, the gross margin was 25% in the third quarter of fiscal 2000 compared to 26% in the third quarter of fiscal 1999. The gross margin as a percentage of net sales for the nine-month period of fiscal 2000 was 28%, compared to 5% for fiscal 1999. The slight decrease in the gross margin in the third quarter of fiscal 2000 was primarily due to certain increased freight costs associated with holiday shipments, which resulted from manufacturing delays caused by various Far East weather situations. The increase in the gross margin for the nine-month period is primarily due to an increase in the percentage of Ultra Wheels skate sales versus Skate Attack skate sales and an increase in the percentage of total sales related to Hespeler products. During the second quarter of fiscal 1999, the Company conducted a thorough review of its in-line business and as a result the Company wrote down certain inventories. The total amount of the writedown was approximately $6 million, which was reflected as a charge against cost of goods, resulting in a significant margin reduction for the nine-month period in fiscal 1999 from 22% to 5%. The major inventory reduction was in the Company's unfinished/component parts inventory. As a result of the Company's restructured production philosophy, the Company shifted the majority of its in-line skate production to offshore sources in an effort to reduce product costs. The Company's Ultra Wheels brand accounted for approximately 60% and 66%, respectively, of total net sales in the third quarter and for the nine month period of fiscal 2000 compared to 37% and 45%, respectively, in fiscal 1999. The Company's Skate Attack brand accounted for 23% and 15%, respectively, of total net sales in the third quarter and for the nine month period of fiscal 2000 compared to 42% and 40%, respectively, in fiscal 1999. The Hespeler brand accounted for approximately 17% and 19%, respectively, of total net sales in the third quarter and for the nine-month period of fiscal 2000 compared to 21% and 15%, respectively, in fiscal 1999. Operating Expenses. Selling expenses were $943,000, or 9.9%, of total net sales in the third quarter and $3.2 million, or 10.3%, of total net sales for the nine-month period of fiscal 1999 compared to $846,000, or 11.2%, in the third quarter and $3.6 million, or 11.4%, for the nine-month period of fiscal 1999. The decrease in selling expenses as a percentage of net sales in both the third quarter and nine-month period was primarily the result of a reduction in advertising and trade show costs and of management's efforts to control expenditures. The increase in the absolute dollar amount of selling expenses for the third quarter of fiscal 1999 is primarily the result of an increase in commissions and royalties associated with the increased sales volume. General and administrative expenses were $1.9 million, or 20.2%, of total net sales in the third quarter and $5.9 million, or 19.2%, of total net sales for the nine-month period of fiscal 2000 compared to $1.8 million, or 23.7%, in the third quarter and $5.8 million, or 18.1%, for the nine-month period of fiscal 1999. The slight increase in the absolute dollar amount of the general and administrative expenses for both the third quarter and the nine-month period was primarily due to increased insurance and personnel costs. The decrease in general and administrative expenses as a percentage of net sales in the third quarter was primarily due to the increase in the Company's sales volume versus the generally fixed nature of certain general and administrative expenses. In fiscal 1997 the Company purchased a new software system and appropriate computer hardware. As part of the Company's selection process, the ability to recognize the year 2000 was a major requirement and thus the company was prepared for the change. The Company has not incurred any material issues related to the year 2000 on the Company's computerized information systems and has not incurred any material problems with vendors and/or customers not being ready. Based on current information, costs of addressing any potential or future problems are not expected to have a material adverse impact on the Company's financial position, results of operations or cash flows in future periods. Interest Expense. Interest expense was $274,000 in the third quarter and $714,000 for the nine-month period of fiscal 2000 compared to $179,000 in the third quarter and $860,000 for the nine-month period of fiscal 1999. The increase in interest expense for the third quarter is primarily due to the interest expense related to the Company's line of credit facility. During the third quarter, the Company entered into a new credit facility and mortgage note, which resulted in some additional interest expenses. For the nine-month period, the interest expense decrease is primarily related to the Company's line of credit facility. The Company has continued to closely manage its cash flows, which has resulted in a decrease in the average outstanding balance on the Company's line of credit facility for the nine-month period of fiscal 2000 as compared to the same period of fiscal 1999. Provision for Income Taxes. The Company's effective tax rate was 38.7% and 30.6%, respectively, in the third quarter and the nine month period of fiscal 2000 compared 29.1% and 33.2%, respectively, in the third quarter and nine month period of fiscal 1999. The slight changes in fiscal 2000 were primarily due to the effect of state and foreign tax rates, the percentage of state and foreign revenues and the level of pre-tax income/(loss). Net Loss. The Company had a net loss of ($453,000), or ($.08), per share in the third quarter of fiscal 2000 compared to a net loss of ($577,000), or ($.10), per share in fiscal 1999. The Company had a net loss of ($797,000), or ($.14), per share for the nine month period of fiscal 2000 compared to a net loss of ($5.9), million or ($1.01), per share in fiscal 1999. The improvement in financial results for the third quarter can be attributed to an increase in the sales volume and management's control over expenses, as discussed above. The improvement for the nine-month period can be attributed also to the increase in the gross margins, as discussed above. LIQUIDITY AND CAPITAL RESOURCES In the first nine months of fiscal 2000 the Company's operations provided $1.5 million of cash compared to $7.3 million in the nine-month period of fiscal 1999. The net cash provided by operations in fiscal 2000 was primarily the result of income tax refunds and a reduction of receivables. The large amount of cash provided by operations in the prior year was the result of the Company's conversion of old inventory to cash through bargain sales. Net cash used in investing activities was $147,000 in the nine-month period of fiscal 2000 compared to $566,000 in the nine-month period of fiscal 1999. The use of cash for this activity was primarily attributable to expenditures relating to new computer and production equipment. Net cash used in financing activities was $432,000 in the nine-month period of fiscal 2000 compared to $7.1 million in the nine-month period of fiscal 1999. The use of cash for this activity was primarily to reduce the Company's line of credit facility and long term debt obligations. Effective September 8, 1999, the Company entered into a new financing package. This package included a new operating credit line and a refinancing of the Company's mortgage note. The Company's debt to worth ratio was .6 to 1 as of November 30, 1999, the same as it was as of February 28, 1999 and as of November 30, 1998. The Company's long-term debt, which consists primarily of a mortgage note on the Company's facility and obligations under endorsement license agreements, less current maturities, was $5.8 million as of November 30, 1999. As of November 30, 1999 the Company had a revolving line of credit with a bank that provides for borrowings of up to $10 million, subject to a borrowing base, which is calculated monthly and updated periodically during each month. The borrowing base is based on a percentage of eligible receivables and inventories. As of November 30, 1999, the borrowing base was $9.9 million, of which $2.3 million was outstanding. In connection with this credit facility, the Company agreed, among other things to maintain certain minimum financial ratio and income levels. The Company believes its current cash position; funds available under existing bank arrangements and cash generated from operations will be sufficient to finance the Company's operating requirements. Certain statements contained in this Management's Discussion and Analysis of Financial Condition and Results of Operations are forward looking, based on current expectations, and actual results may differ materially. These forward looking statements, in particular the statements regarding market conditions in the in-line skate industry and the sufficiency of the Company's capital resources, involve a number of risks and uncertainties, including (1) the size and strength of competing manufacturers of in-line stakes, (2) the level of excess inventories and degree of price competition in the in-line skate market, (3) the Company's dependence on certain key customers, (4) the effect of adverse weather conditions and overall economic conditions on the in-line skate market, and (5) the ability of the Company to generate profits in the fourth quarter of fiscal 2000 and fiscal 2001. Item 3. Quantitative and Qualitative Disclosures About Market Risk Market Risk. The Company's sales and results of operations are subject to foreign currency fluctuations. The Company's foreign operations are in countries with fairly stable currencies, therefore, the effect of foreign currencies has not been significant. The Company limits its exposure to translation gains and losses by maintaining and controlling its foreign cash flows when possible, thus reducing such exposure. PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K (a) Exhibits. See Exhibit Index immediately following the signature page of this Form 10-Q. (b) Reports on Form 8-K. No reports on Form 8-K were filed by the Registrant during the quarter to which this Form 10-Q relates. SIGNATURES Pursuant to the requirements of Section 13 or 15(d) 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. FIRST TEAM SPORTS, INC. By: /s/ John J. Egart John J. Egart President and CEO By: /s/ Kent A. Brunner Kent A. Brunner Vice President and CFO Dated: January 12, 2000 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 EXHIBIT INDEX TO FORM 10-Q For Quarter Ended: Commission File No.: 0-16422 November 30, 1999 ------------------------------------------------------------------- FIRST TEAM SPORTS, INC. ------------------------------------------------------------------- Exhibit Number Description 3.1 Restated Articles of Incorporation -- incorporated by reference to Exhibit 3.1 to the Company's Form 10-K for the year ended February 28, 1997 3.2 Bylaws -- incorporated by reference to Exhibit 3.2 to the Company's Registration Statement on Form S-18 Reg. No. 33-16345C 4.1 Specimen of Common Stock Certificate--incorporated by reference to 4.1 to the Registrant's Annual Report on Form 10-K for the fiscal year ended February 28, 1991 4.2 Certificate of Designations of Series A Preferred Stock (included in Restated Articles of Incorporation -- see Exhibit 3.1) 4.3 Rights Agreement dated as of March 15, 1996 between the Company and Norwest Bank Minnesota, N.A. as Rights Agent -- incorporated by reference to Exhibit 2.1 to the Company's Registration Statement on Form 8-A, Reg. No. 0-16422 4.4 Form of Right Certificate -- incorporated by reference to Exhibit 2.2 to the Company's Registration Statement on Form 8-A, Reg. No. 0-16422 4.5 Summary of Rights to Purchase Share of Series A Preferred Stock- incorporated by reference to Exhibit 2.3 to the Company's Registration Statement of Form 8-A, Reg. No. 0-16422 27* Financial Data Schedule (included in electronic version only) - ------------- *Filed herewith EX-27 2 ART 5 FDS 3RD QUARTER 10-Q
5 1 U.S. Dollars 9-MOS FEB-29-2000 MAR-01-1999 NOV-30-1999 1 1,562,222 0 11,342,973 760,000 11,604,643 25,477,221 10,873,502 4,185,366 37,609,441 7,963,917 5,791,474 0 0 58,522 23,001,528 37,609,441 30,900,446 30,900,446 22,211,351 22,211,351 0 0 713,728 (1,147,021) (350,511) (796,510) 0 0 0 (796,510) (.14) (.14)
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