-----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, P1AWNcmpjWvC+h0kioMnQVDJ/QmitWj/Z9arM3eOkVy33nRH9SETZOAFx+8tdLMx lDc6gZRqfB82V0ju7GwRGg== 0000950152-96-003962.txt : 19960813 0000950152-96-003962.hdr.sgml : 19960813 ACCESSION NUMBER: 0000950152-96-003962 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 19960629 FILED AS OF DATE: 19960812 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: DIY HOME WAREHOUSE INC CENTRAL INDEX KEY: 0000899595 STANDARD INDUSTRIAL CLASSIFICATION: RETAIL-LUMBER & OTHER BUILDING MATERIALS DEALERS [5211] IRS NUMBER: 382560752 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-21768 FILM NUMBER: 96608021 BUSINESS ADDRESS: STREET 1: 5811 CANAL RD STE 180 CITY: VALLEY VIEW STATE: OH ZIP: 44125 BUSINESS PHONE: 2163285100 MAIL ADDRESS: STREET 1: 5811 CANAL ROAD STREET 2: SUITE 180 CITY: VALLEY VIEW STATE: OH ZIP: 44125 10-Q 1 DIY HOME WAREHOUSE QUARTERLY REPORT 1 FORM 10-Q UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 29, 1996 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 0-21768 D.I.Y. Home Warehouse, Inc. --------------------------- (Exact name of registrant as specified in its charter) State of Ohio 38-2560752 (State of Incorporation) (I.R.S. Employer I.D. No.) 5811 Canal Road Valley View, Ohio 44125 (216) 328-5100 (Address of principal executive offices and telephone number) 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. Class Outstanding at June 29, 1996 - --------------------------- ------------------------------ Common Stock, no par value 7,625,000 Total pages: 12 Index to exhibits: 13 2 D.I.Y. HOME WAREHOUSE, INC. INDEX
PAGE NO. -------- PART I FINANCIAL INFORMATION Item 1. Financial Statements Condensed Balance Sheet - June 29, 1996 and December 30, 1995 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 Condensed Statement of Income - Three and Six Months Ended June 29, 1996 and July 1, 1995 . . . . . . . . . . . . . . . . . . . . 4 Condensed Statement of Shareholders' Equity - Six Months Ended June 29, 1996. . . . . . . . . . . .. . . . . . . 5 Condensed Statement of Cash Flows - Six Months Ended June 29, 1996 and July 1, 1995 . . . . . . . . .. . . . . . . . . . . . 6 Notes to Condensed Financial Statements. . . . . . . . . .. . . . . . . . . . . . . . . . . 7 - 8 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations. . . . . . . . . . . . . . . . . . . 9 - 11 PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . . . . . 12
2 3 PART I - FINANCIAL INFORMATION D.I.Y. HOME WAREHOUSE, INC. CONDENSED BALANCE SHEET
June 29, 1996 December 30,1995 ------------- ---------------- Assets (Unaudited) Current assets: Cash and cash equivalents $ 1,102,397 $ 1,468,897 Accounts receivable, trade 74,678 97,584 Merchandise inventories 44,771,896 39,928,793 Deferred income taxes 685,312 685,312 Prepaid expenses and other assets 690,421 662,991 ----------- ----------- Total current assets 47,324,704 42,843,577 ----------- ----------- Property and equipment, at cost 49,323,728 46,956,706 Less accumulated depreciation and amortization 8,573,253 6,985,653 ----------- ----------- Property and equipment, net 40,750,475 39,971,053 ----------- Other assets 628,677 685,180 ----------- ----------- Total assets $88,703,856 $83,499,810 =========== =========== Liabilities and Shareholders' Equity Current liabilities: Note payable, affiliate $ 900,000 $ 900,000 Current maturities of long-term debt 816,326 552,670 Accounts payable 15,953,526 13,067,899 Accrued expenses and other 6,090,442 5,025,712 ----------- ----------- Total current liabilities 23,760,294 19,546,281 ----------- ----------- Revolving credit 11,500,000 13,300,000 Long-term debt 16,984,392 16,115,153 Deferred income taxes 1,099,016 1,099,016 Shareholders' equity: Preferred stock, authorized 1,000,000 shares, none issued -- -- Common stock, no par value, authorized 10,000,000 shares, 7,625,000 shares outstanding 22,912,521 22,912,521 Retained earnings 12,447,633 10,526,839 ----------- ----------- Total shareholders' equity 35,360,154 33,439,360 ----------- ----------- Total liabilities and shareholders' equity $88,703,856 $83,499,810 ----------- -----------
See accompanying notes to condensed financial statements. 3 4 D.I.Y. HOME WAREHOUSE, INC. CONDENSED STATEMENT OF INCOME (Unaudited)
FOR THE THREE MONTHS ENDED FOR THE SIX MONTHS ENDED JUNE 29, JULY 1, JUNE 29, JULY 1, 1996 1995 1996 1995 ------------ ------------ ------------ ------------ Net sales $ 68,168,668 $ 58,411,111 $107,312,573 $ 88,668,916 Cost of sales 51,282,094 42,118,502 79,660,896 63,188,850 ------------ ------------ ------------ ------------ Gross profit 16,886,574 16,292,609 27,651,677 25,480,066 Store operating, general and administrative expenses 12,822,932 11,645,598 23,193,444 19,093,478 Store preopening costs -- 638,802 -- 1,285,560 ------------ ------------ ------------ ------------ Operating income 4,063,642 4,008,209 4,458,233 5,101,028 Other expense, net 623,668 455,708 1,199,581 725,765 ------------ ------------ ------------ ------------ Income before income taxes 3,439,974 3,552,501 3,258,652 4,375,263 Income taxes 1,410,389 1,417,499 1,337,858 1,737,010 ------------ ------------ ------------ ------------ Net income $ 2,029,585 $ 2,135,002 $ 1,920,794 $ 2,638,253 ============ ============ ============ ============ Earnings per share $ 0.27 $ 0.28 $ 0.25 $ 0.35 ============ ============ ============ ============ Weighted average common shares outstanding 7,625,000 7,625,000 7,625,000 7,625,000 ============ ============ ============ ============
See accompanying notes to condensed financial statements. 4 5 D.I.Y. HOME WAREHOUSE, INC. CONDENSED STATEMENT OF SHAREHOLDERS' EQUITY FOR THE SIX MONTHS ENDED JUNE 29, 1996 (Unaudited)
Common Stock Total ------------------ Retained Shareholders' Shares Amount Earnings Equity ------ ------ -------- ------ Balances at December 30, 1995, as previous- ly reported 7,625,000 $22,912,521 $10,252,424 $33,164,945 Adjustment for the cumulative effect of the change in accounting for merchandise inventories 274,415 274,415 ----------- ----------- ----------- ----------- Balances at December 30, 1995, as adjusted 7,625,000 22,912,521 10,526,839 33,439,360 Net income 1,920,794 1,920,794 ----------- ----------- ----------- ----------- Balances, June 29, 1996 7,625,000 $22,912,521 $12,447,633 $35,360,154 =========== =========== =========== ===========
See accompanying notes to condensed financial statements. 5 6 D.I.Y. HOME WAREHOUSE, INC. CONDENSED STATEMENT OF CASH FLOWS (Unaudited)
For the six months ended June 29, July 1, 1996 1995 ------------- --------- Cash flows from operating activities: Net income $ 1,920,794 $ 2,638,253 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and amortization 1,587,600 952,024 Changes in operating assets and liabilities: Accounts receivable, trade 22,906 (174,205) Merchandise inventories (4,843,103) (12,418,841) Prepaid expenses and other assets 29,073 (160,087) Accounts payable 2,885,627 15,280,086 Accrued expenses and other current liabilities 1,064,730 1,525,924 ------------ ------------ Net cash provided by operating activities 2,667,627 7,643,154 ------------ ------------ Cash flows from investing activities: Acquisition of property and equipment (906,595) (12,404,066) ------------ ------------ Net cash used in investing activities (906,595) (12,404,066) ------------ ------------ Cash flows from financing activities: Principal payments under capital lease obligations (35,905) -- Principal payments, note payable -- (687,176) Proceeds from revolving credit 4,000,000 2,500,000 Principal payments of revolving credit (5,800,000) -- Proceeds from long-term debt -- 3,375,000 Principal payments of long-term debt (291,627) (113,021) ------------ ------------ Net cash (used in) provided by financing activities (2,127,532) 5,074,803 ------------ ------------ Net (decrease) increase in cash and cash equivalents (366,500) 313,891 Cash and cash equivalents, beginning of period 1,468,897 937,477 ------------ ------------ Cash and cash equivalents, end of period $ 1,102,397 $ 1,251,368 ============ ============
Supplemental schedule of non-cash investing and financing activities: Capital lease obligations of $1,460,427 were incurred when the Company entered into leases for vehicles and computer hardware and software in 1996. See accompanying notes to condensed financial statements. 6 7 D.I.Y. HOME WAREHOUSE, INC. Notes to Condensed Financial Statements (Unaudited) 1. Basis of Presentation: In the opinion of management, the accompanying unaudited condensed financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the financial position as of June 29, 1996 and the results of operations and cash flows for the three and six months ended June 29, 1996 and July 1, 1995. The condensed financial statements should be read in conjunction with the financial statements and notes contained in the Company's Annual Report filed on Form 10-K. The results of operations for any interim period should not necessarily be considered indicative of the results of operations for the full year. 2. Summary of Significant Accounting Policies: During the first quarter of 1996, the Company changed its method of accounting for merchandise inventories from the last-in, first-out (LIFO) method to the first-in, first-out (FIFO) method. As required by generally accepted accounting principles, the Company has retroactively adjusted prior years' financial statements for this change. The new method of accounting for inventory was adopted in recognition of industry practice and to provide for a better matching of costs and revenues. The Internal Revenue Service granted permission to the Company to change to the FIFO method of inventory valuation for income tax purposes. The effect of the change in accounting method had no effect on net income or earnings per share as previously reported for the three or six months ended July 1, 1995. The Company will restate each of its 1995 quarters as well as its 1995 and 1994 annual results to provide retroactive application of the effect of the accounting change. Had the Company not changed its method of inventory costing, the impact on net income and earnings per share for the three and six months ended June 29, 1996 would not have been material. 3. Earnings Per Share: Earnings per share are computed using the weighted average number of shares of common stock outstanding for the periods. Earnings per share have not been adjusted for the effect of stock options as the dilutive effect would be less than three percent for each period. 4. Stock Options: The Company has a Long Term Incentive Plan (the Plan) which reserves shares of the Company's authorized common stock for issuance. On May 22, 1996, the Company's shareholders authorized an increase of the number of shares authorized for issuance under the Plan from 850,000 shares to 1,350,000 shares. 7 8 Options granted under the Plan vest over five years at the rate of 20% each year and expire no more than ten years from the date of grant. A summary of activity under the Plan for the six months ended June 29, 1996 is as follows:
Average Option Shares Subject Price to Options Per Share ---------- --------- Outstanding December 30, 1995 673,000 $ 10.18 Granted 158,000 $ 4.62 Canceled (10,000) $ 7.14 -------- -------- Outstanding June 29, 1996 821,000 $ 9.15 ======== ========
At June 29, 1996, 174,800 options were exercisable and 529,000 shares were available for future grant. The Company does not expect to adopt the recognition provisions of recently issued SFAS No. 123, Accounting for Stock-Based Compensation. Disclosures required by new accounting standard will be included in future financial statements pursuant to the effective date criteria. 6. Income Taxes: A reconciliation of the Statutory federal income tax rate to the Company's effective income tax rate follows:
Three months ended Six Months ended June 29, July 1, June 29, July 1, 1996 1995 1996 1995 ------ ------ ------ ------ Statutory federal income tax rate 34.0% 34.0% 34.0% 34.0 State and local income taxes, net of federal benefit 7.0 6.0 7.0 6.0 Tax credits and other -- (0.1) -- (0.3) ------ ------ ------ ------ Effective income tax rate 41.0% 39.9% 41.0% 39.7 ====== ====== ====== ======
8 9 MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION OPERATIONS - Three Months Ended June 29, 1996 Compared to Three Months Ended July 1, 1995 Net sales increased by $9.8 million, or 17%, to $68.2 million in the second quarter of fiscal 1996, from $58.4 million in the second quarter of fiscal 1995. This increase in net sales was attributable primarily to the full period sales in 1996 for the five DIY locations which were opened in 1995. DIY posted comparable store sale increases in each month of the quarter resulting in a quarterly increase of 4%. However, sales were below expectations due to adverse weather conditions in April, May and the first two weeks of June which significantly delayed the spring lawn and garden shopping season. Further, the Company's sales were adversely affected in April and May by the liquidation of a competitor, Handy Andy, which had ten competing stores in the Company's markets. Gross profit increased by $594,000, or 4%, to $16.9 million in the second quarter of fiscal 1996 from $16.3 million in the second quarter of fiscal 1995. As a percentage of net sales, gross profit decreased to 24.8% in the quarter ended June 29, 1996 compared to 27.9% in the comparable quarter of fiscal 1995, due primarily to vendor discounts received in 1995 on the initial inventory for new stores. No such discounts were realized in the second quarter of fiscal 1996 as there were no new store openings in the period. Store operating, general and administrative expenses were $12.8 million for the quarter ended June 29, 1996 compared to $11.6 million for the quarter ended July 1, 1995. As a percentage of net sales, operating expenses decreased to 18.8% in the second quarter of fiscal 1996 compared to 19.9% in the second quarter of fiscal 1995 due to emphasis on cost-leveraging and improvements in operating strategies. There were no store preopening costs in the second quarter of fiscal 1996, as there were no new stores under development during this period. Store preopening costs were $638,802 in the second quarter of fiscal 1995 relative to three stores opened during this period. Other expense, net, increased from $455,708 in the quarter ended July 1, 1995 to $623,668 in the quarter ended June 29, 1996 due to interest expense incurred on higher levels of debt outstanding in the second quarter of 1996. 9 10 OPERATIONS - Six Months Ended June 29, 1996 Compared to Six Months Ended July 1, 1996 Net sales for the six months ended June 29, 1996 were $107.3 million, a 21% increase over net sales of $88.7 million for the six months ended July 1, 1995. Comparable store sales increased 1% reflecting reduced sales in the first quarter due to severe winter weather and adverse weather during April, May and the first two weeks of June which significantly delayed the spring lawn and garden shopping season. Further, the Company's sales were adversely affected in April and May by the liquidation of a competitor, Handy Andy, which had ten competing stores in the Company's markets. Gross profit for the six months ended June 29, 1996 was $27.7 million compared to gross profit of $25.5 for the six months ended July 1, 1995. Gross profit, as a percentage of net sales, decreased from 28.7% in the first six months of fiscal 1995 to 25.8% in the comparable 1996 six month period. The decline in gross margin is due primarily to vendor discounts received in 1995 on the initial inventory orders for four new stores opened during the first half of 1995. No such discounts were realized in the first six months of fiscal 1996 as there were no new store openings. Store operating expenses were 21.6% of net sales in the first half of fiscal 1996 consistent with 21.5% of net sales in the first half of fiscal 1995, as the sales softness in the spring of 1996 impacted the Company's ability to leverage expenses. There were no store preopening costs for the six months ended June 29, 1996 as there were no new stores under development during this period. Store preopening costs were $1,285,560 for the six months ended July 1, 1995 relative to four stores opened during this period. Other expense, net, increased from $725,765 in the first six months of 1995 to $1,199,581 in the first six months of 1996 due to interest expense incurred on higher levels of debt outstanding. LIQUIDITY AND CAPITAL RESOURCES During the six months ended June 29, 1996, operating activities provided net cash of $2.7 million. The primary source of cash from operations was $3.5 million from net income plus depreciation and amortization. The primary use of cash was $4.8 million to fund increased merchandise inventory levels at existing stores for seasonal requirements, partially offset by an increase of $2.9 million and $1.1 million in accounts payable and accrued expenses and other, respectively. During the six months ended July 1, 1995, operating activities provided net cash of $7.6 million. The primary source of cash from operations was $3.6 million from net income plus depreciation and amortization. The primary use of cash was $12.4 million to finance increases in merchandise inventories resulting from new store openings in the first half of 1995 and seasonal increases, offset by a $15.3 million increase in accounts payable and a $1.5 million increase in accrued expenses and other current liabilities. 10 11 Net cash used in investing activities was approximately $900,000 and $12.4 million during the six months ended June 29, 1996 and July 1, 1995, respectively, due to remodeling initiatives in the Company's older stores in the first six months of 1996 and the acquisition of property and equipment related to new store expansion in the first six months of fiscal 1995. Net cash used in financing activities during the six months ended June 29, 1996 totaled $2.1 million, as a result of repayments to the Company's revolving credit facility of $1.8 million and principal payments of debt and capital lease obligations of $300,000. Net cash provided by financing activities in the six months ended July 1, 1995 totaled $5.1 million, due primarily to $2.5 million and $3.4 million from revolving credit borrowings and mortgage loans, respectively. During the first quarter of fiscal 1996, the Company changed its method of accounting for inventories from the last-in, first-out (LIFO) method to the first-in, first-out (FIFO) method. As required by generally accepted accounting principles, the Company has retroactively adjusted prior years' financial statements for this change. The Company entered into capital lease obligations of $815,988 for computer hardware and software and $644,439 for trucks in the second and first quarters of 1996, respectively. Management believes cash on hand, cash from operations and cash available through the Company's financing agreements will be sufficient to meet short-term and long-term working capital requirements. 11 12 PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K -------------------------------- (a) Exhibits: A list of the exhibits required by Item 601 of Regulation S-K to be filed as a part of this Form 10-Q is shown on the "Exhibit Index" filed herewith. (b) Reports on Form 8-K: None Signature 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. D.I.Y. HOME WAREHOUSE, INC. (Registrant) DATED: August 9, 1996 By: /s/ Marilyn A. Eisele ------------------------------------- Vice President - Administration and Finance, Chief Financial Officer 12 13 EXHIBIT INDEX Exhibit Number Description of Exhibit - ------ ---------------------- 10 Material Contracts: ------------------- 10.1 General Business Lease Agreement with IBM Credit Corporation dated May 30, 1996 11 Earnings Per Share: ------------------- 11.1 Computation of Earnings Per Share 27 Financial Data Schedule: ------------------------ 27.1 Financial Data Schedule for the quarter ended June 29, 1996 13 EX-10.1 2 EXHIBIT 10.1 1 EXHIBIT 10.1 GENERAL BUSINESS LEASE AGREEMENT [Logo] IBM Credit Corporation FAX NUMBER: 800-426-9299 Agreement No: G00266385 Quote Letter No: Q0128972401 Date Prepared: 05/30/96 Attachment No: Q0128972401 Program Name: General Business Lease Lessor Cust No: 4694568 B/O No: QZY CUSTOMER INSTALLED AT LOCATION Customer No: 2517288 Reference No: Company Name: DYI HOME WAREHOUSE INC Company Name: DYI HOME WAREHOUSE INC Address: 5811 CANNAL RD Address: 5811 CANNAL RD CLEVELAND, OH 44125-3435 CLEVELAND, OH 44125-3435 Tel. No.: 216-328-5100 Tel. No.: 216-328-5100 Attn: Marilyn Eisele Attn: Marilyn Eisele
FOR THESE RATES TO BE VALID, THIS AGREEMENT MUST BE SIGNED AND RECEIVED BY US BY: 06/29/96. - -------------------------------------------------------------------------------------------------------------------- Trans. Maint. (A) (B) Single (C = AXB) Description - Leased Item (Machine, Model), Financed Item Code Includ. QTY Unit Price Price - --------------------------------------------------------- ------ ------- --- ---------- --------- BAYH-24P BAYSTACK 24 PORT ETHERNE B$ 5 1,549.00 7,745.00 BA14-001 ASN 16M DRAM BASE UNIT B$ 1 4,665.00 4,665.00 BA15-001 BAY NTWRKS MULTI-CHANNEL B$ 1 14,445.00 14,445.00 BA16-001 BAY NTWRKS DUAL ETHERNET B$ 1 3,000.00 3,000.00 BA17-610 XILOGICS ANNEX 6100 B$ 1 20,995.00 20,995.00 (Additional Items may be listed on a Continuation Sheet) Page Total 50,850.00 - --------------------------------------------------------------------------------------------------------------------
(D) Total Amount Financed (E) Term in Months (F) Interim Rent (G) Payment Frequency (H) Payment Amount (All Pages) Applies: Taxes May Apply Monthly 815,988.00 60 NO in Arrears 16,778.00 - -------------------------------------------------------------------------------------------------------------------- Required if Checked (I) Security Deposit (J) End of Lease (EOL) (K) Commencement by: Designation 06/96 Direct Debit / / FM / / Security Deposit x $1 x (L) Rent Commencement Guaranty / / 163,197.60 % / / Date: - --------------------------------------------------------------------------------------------------------------------
(*) In the State of Texas the interest rate charges will not exceed the stated interest rate. THIS AGREEMENT CONTAINS THE TERMS F 0R THIS TRANSACTION. BY SIGNING BELOW, BOTH PARTIES ACKNOWLEDGE THAT THEY HAVE READ AND UNDERSTAND THIS AGREEMENT AND AGREE TO TERMS CONTAINED ON THIS PAGE AND THE FOLLOWING PAGES. FURTHER, YOU AGREE THAT THESE TERMS SUPERSEDE ALL PROPOSALS OR PRIOR AGREEMENTS, ORAL OR WRITTEN, AND ALL OTHER COMMUNICATIONS BETWEEN BOTH PARTIES. DELIVERY OF AN EXECUTED COUNTERPART OF THIS AGREEMENT BY FACSIMILE OR ANY OTHER RELIABLE MEANS SHALL BE DEEMED TO BE AS EFFECTIVE FOR ALL PURPOSES AS DELIVERY OF THE MANUALLY EXECUTED COUNTERPART. YOU UNDERSTAND THAT WE MAY MAINTAIN A COPY OF THIS AGREEMENT IN ELECTRONIC FORM AND AGREE THAT A COPY PRODUCED FROM THE ELECTRONIC FORM OR BY ANY OTHER RELIABLE MEANS (FOR EXAMPLE, PHOTOCOPY OR FACSIMILE) SHALL IN ALL RESPECTED BE CONSIDERED EQUIVALENT TO AN ORIGINAL. Accepted by: IBM CREDIT CORPORATION DIY HOME WAREHOUSE INC ------------------------------ For or as Lessor: CUSTOMER By: By: /s/ Marilyn A. Eisele - --------------------------------- --------------------------------- Authorized Signature Authorized Signature Marilyn A. Eisele 06/03/96 - --------------------------------- ---------------------------------- Name (Type or Print) Date Name (Type or Print) Date GUARANTY To induce us to enter into this Agreement the undersigned jointly and severally ("Guarantor(s)") unconditionally guarantees the prompt payment when due of all the Customer's obligations to us under the Lease. We shall not be required to proceed against the Customer or the Leased Item or enforce any other remedy before proceeding against the Guarantor(s). The Guarantor(s) agrees to pay all attorney's fees and other expenses incurred by us by reason of default by the Customer or the Guarantor(s). The Guarantor(s) waives notice of acceptance hereof and all other notices or demands of any kind to which the Guarantor(s) may be entitled. The Guarantor(s) consents to any extensions or modifications of the the Customer's obligations and release and/or compromise of any obligations to the Customer or any other obligors or guarantors without in any way releasing the Guarantor(s) from its obligations hereunder. This guaranty shall bind the heirs, administrators, representatives, successors, and assigns of the Guarantor(s), and may be enforced by or for the benefit of any assignee of ours. THE GUARANTOR(S) CONSENTS TO THE JURISDICTION OF ANY FEDERAL OR STATE COURT, LOCATED IN THE STATE OF NEW YORK, WITH RESPECT TO ANY LEGAL ACTION COMMENCED HEREUNDER. THE GUARANTOR(S) EXPRESSLY WAIVES ANY RIGHTS TO A TRIAL BY JURY. X X -------------------------------- -------------------------------- Guarantor Signature Date Guarantor Signature Date 2 GENERAL BUSINESS LEASE AGREEMENT (Continuation Form) [Logo] IBM Credit Corporation Agreement No: G00266385 Quote Letter No: Q0128972401 Date Prepared: 05/30/96 Attachment No: Q0128972401 Program Name: General Business Lease Lessor Cust No: 4694568 B/O No: QZY CUSTOMER INSTALLED AT LOCATION Customer No: 2517288 Reference No: Company Name: DYI HOME WAREHOUSE INC Company Name: DYI HOME WAREHOUSE INC Address: 5811 CANNAL RD Address: 5811 CANNAL RD CLEVELAND, OH 44125-3435 CLEVELAND, OH 44125-3435 Tel. No.: 216-328-5100 Tel. No.: 216-328-5100 Attn: Marilyn Eisele Attn: Marilyn Eisele
FOR THESE RATES TO BE VALID, THIS AGREEMENT MUST BE SIGNED AND RECEIVED BY US BY: 06/29/96. - --------------------------------------------------------------------------------------------------------------------- Trans. Maint. (A) (B) Single (C = AXB) Description - Leased Item (Machine, Model), Financed Item Code Includ. QTY Unit Price Price - --------------------------------------------------------- ------ ------- --- ---------- --------- BA18-001 ANH 8 PORT ETHERNET B$ 16 2,946.00 47,136.00 C128-001 2.1GB SCSI DISK B$ 1 4,083.00 4,083.00 C450-001 PROLIANT 450OX 586/64MB B$ 1 2,799.00 2,799.00 R011-001 SPORTSER 28.8 EXT. MODEM B$ 16 1,894.00 30,304.00 5716-JS1 JOB SCHEDULER FOR OS/400 s 1 3,189.00 3,189.00 5716-PT1 PERFORMANCE TOOLS OS/400 s 1 3,144.00 3,144.00 5716-PW1 APP DEV TOOLSET OS/400 V s 1 4,877.00 4,877.00 5716-RG1 INT LANG ENV (R) RPG OS/ s I 4,502.00 4,502.00 5716-SS1 OPERATING SYSTEM/400 (R) s 1 32,288.00 32,288.00 5716-XA1 CLIENT ACCESS FOR OS/400 s 1 10,129.00 10,129.00 5798-TAZ TCP/IP FILE SRVR SUP OS/ s 1 660.00 660.00 6542-301 B$ 43 403.00 17,329.00 6586-37T P75 85OHF,16MB,WIN 95 B$ 27 1,919.00 51,813.00 6887-MAG B$ 16 6,044.00 96,704.00 9406-500 'LIC' SYSTEM UNIT B$ 1 109,947.00 109,947.00 9994-002 FINANCING OF NON-IBM SW T 1 316,185.00 316,185.00 9995-007 SYSTEM SERVICES AMENDMENT s 1 30,049.00 30,049.00 Page Total 765,138.00
Z 125-5136-00 (04/94) 3 SUPP NO.: G00266385 ADDITIONAL TERMS PAGE 3 OF 4 1. OUR OFFERINGS. Under this General Business Lease Agreement ("Agreement") we will lease machines and finance charges listed on the face of this Agreement. You agree to keep these Items (as specified on the face of this Agreement) free from encumbrances of any kind, except those established by us under this Agreement. For licensed Programs, we finance the one-time charge for the Program license. 2. THE TRANSACTION. Each leased or financed line-item listed on the face of this Agreement (each a "Transaction") is initiated and effective when you sign and we accept this Agreement. When you sign this Agreement, you assign to us the exclusive right to purchase the specified Leased Item (as specified on the face of this Agreement) from the Supplier under the terms of the Supplier's purchase agreement. Upon installation of the Item, you will provide us a certificate of acceptance. At our option, the receipt of Supplier's notification may satisfy our requirement to receive the certificate of acceptance and you shall become fully obligated to make payments under this Agreement for the Item at that time without having to execute any additional documents. If you fail to provide such certificate of acceptance or we are not notified by Supplier of the installation of the Item, we shall have no obligation to purchase, lease or finance the Items for which such document or notification are requested. You shall reimburse us, on demand, any sums we may have paid the Supplier and any expenses we may have incurred in connection with such Item or Items. When we receive and approve the certificate of acceptance or Supplier's notification, we will pay Supplier for the Item, unless otherwise notified by you. After we pay the Supplier for the Items, you retain all other rights, obligations and limitations under Supplier's purchase or license agreement in effect at the time we accept this Agreement. 3. TERM AND PAYMENT. The monthly payment amount is specified in Section "H" on the face of this Agreement ("Payment Amount"). The Transaction will begin on the date the item is installed or accepted by you whichever comes first ("Transaction Commencement Date"). Rent shall commence on the Rent Commencement Date. If Section "F" indicating if Interim Rent Appilies is marked "NO" on the face of this Agreement, the Rent Commencement Date shall be the Transaction Commencement Date, unless otherwise indicated in Section "L" on the face of this Agreement. If section "F" is marked "YES" the Rent Commencement Date shall be the first day of the first full payment period following the Transaction Commencement Date and you shall pay Interim rent for the period of time between the Transaction Commencement Date and the rent Commencement Date, unless otherwise indicated in section "L" on the face of this Agreement. The Interim rent shall be based on the Payment Amount prorated based on a 30-day month. The Interim rent shall be billed and due as specified on the first invoice. The Initial term of the Transaction ("Term") begins on the Rent Commencement Date and continues for the number of months in Section "E" on the face of this Agreement. 4. PAYMENT PROTECTION. The Payment Amount stated in Section "H" on the face of this Agreement is fixed, as long as the Transaction Commencement Date occurs within the month stated in Section "K" on the face of this Agreement and your Supplier does not change any Single Unit Price indicated in Section "B" on the face of this Agreement. If your Supplier changes any Single Unit Price, we will adjust the Single Unit Price, the Price in Section "C" and the Payment Amount in Section "H" on the face of this Agreement. 5. DELINQUENT PAYMENTS. If you do not make a payment by its due date, you must pay us a late charge ("Late Charge") on demand. The Late Charge is an additional 2% of the Payment Amount due or the maximum allowed by law, whichever is less. The Late Charge will accrue on a cumulative basis until the outstanding payments and the Late Charges are paid in full. 6. MAXIMUM RATE. It is the parties' intent to enter into a lease. If, however, a court of competent jurisdiction determines that a Transaction is subject to usury laws, it is the parties' intention to comply with such laws. Accordingly, it is agreed that in no event shall any Transaction require the payment or permit the collection of interest in excess of the maximum amount permitted by applicable law. If any such excess interest is contracted for, charged or received, then neither you nor any other party liable for payments under this Agreement shall be obligated to pay such interest in excess of the maximum amount of interest permitted by applicable law. 7. YOUR OBLIGATION TO PAY. Once effective, the Transaction cannot be canceled. Your obligation to pay all amounts specified in this Agreement is absolute and unconditional until fully satisfied and will not be affected by any right of off-set or defense of any kind whatsoever. If an Item is unsatisfactory for any reason, you will make any claims you may have solely against the Supplier under the terms of the Supplier's purchase agreement. Once all payments due and payable under this Agreement have been made, your obligations under this Agreement will be satisfied. 8. SECURITY DEPOSIT. Any Security Deposit specified in "I" on the face of this Agreement shall be held as security until you have satisfied all of your obligations under this Agreement. We may, at our discretion, apply any Security Deposit to cure any payment default by you under this Agreement. 9. DIRECT DEBIT AUTHORIZATION. You authorize us to initiate orders for the payment of money ("Debit Entries") from your deposit account, the same account on which the Security Deposit check is drawn or which is indicated on an attached voided check, for all payments under this Agreement. You agree that this account is and during the Term of the Lease will be maintained for business purposes, and not for personal, family or household purposes. You agree to notify us in writing at least sixty (60) days prior to any changes in account information affecting the processing of Debit Entries. Both parties agree to be bound by the National Automated Clearing House Association rules relating to Corporate Trade Payment Entries in the administration of these Debit Entries. Each Debit Entry amount will be the total amount from an invoice rendered at the beginning of the calendar month plus any prior Late Charges. The Debit Entry will be initiated on the last business day of the calendar month invoiced. 10. OWNERSHIP. All Leased Items and their associated Parts are our personal property and you will not allow them to become a fixture or realty. 11. INSPECTION AND MARKING. Upon our request, you will permit us to inspect the Items, their Parts, and their maintenance records. According to our instructions, you must affix to any Leased Item any identifying labels, tags, or plates we supply. 12. SELECTION AND USE. You are responsible for the selection of, use of, and results obtained from, any Item. YOU REPRESENT AND WARRANT THAT THE ITEM WILL BE USED SOLELY FOR BUSINESS OR COMMERCIAL PURPOSES AND NOT FOR PERSONAL, FAMILY, CONSUMER OR HOUSEHOLD PURPOSES. 13. DELIVERY AND INSTALLATION. You are responsible for all of the following: a) arranging for delivery and installation of the item; b) any delivery and installation charges; c) inspecting the Item when delivered; d) notifying the Supplier if any Item is not in good condition or does not correspond to specifications; e) providing reasonable assistance to identify and correct any defect or discrepancy; f) complying with all laws, ordinances, rules and regulations relating to the possession, use, modification or maintenance of the Item; and g) cooperating with us in the preparation and filing of any protective UCC-1 financing statements evidencing our interest in the Leased Item. 14. TRANSFER OF WARRANTIES FOR LEASED ITEMS. For Leased Items, we will transfer to you the benefit of any applicable warranties and patent and copyright protection available under the Supplier's agreement. If you are not in default under this Agreement, we warrant that neither we nor anyone acting or claiming through us, by assignment or otherwise, will interfere with our quiet enjoyment of the use of the Leased Items. EXCEPT FOR OUR WARRANTY OF QUIET ENJOYMENT, WE MAKE NO WARRANTY, EXPRESS OR IMPLIED, ABOUT ANY MATTER, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. AS TO LESSOR, YOU LEASE THE LEASED ITEM AND TAKE ANY PROGRAM IN AN "AS IS, WHERE IS" CONDITION. IN NO EVENT WILL WE HAVE ANY LIABILITY FOR, NOR WILL YOU HAVE ANY REMEDY AGAINST US FOR, CONSEQUENTIAL DAMAGES, ANY LOSS OF PROFITS OR SAVINGS, LOSS OF USE, OR ANY OTHER COMMERCIAL LOSS. 15. MAINTENANCE. You will keep and operate each Item according to the manufacturer's specifications or recommendations. You will keep the Items in good repair and operating condition, ordinary wear and tear excepted. For any Transactions that include maintenance coverage (indicated under the column headed "Maint. Includ." on the face of this Agreement), we will arrange for basic maintenance service on the Item. Coverage will begin at the end of the manufacturer's warranty period and discontinue at the end of the initial Term. The cost will be included in the Payment Amount. Coverage beyond the basic maintenance will be your responsibility. All Parts installed in connection with warranty and maintenance services will become our property. 16. LEASED ITEM MODIFICATIONS AND ALTERATIONS. You may alter or modify any Leased Item only with prior written notification to us. Any Lessor-owned Parts you remove shall remain our property and you are not permitted to make such Parts available for sale, transfer, exchange or other disposition without our prior written consent. Before you return a Leased Item to us, you must restore the Leased Item to its original, unaltered or unmodified condition. At your expense, you must remove any Alteration or Modification that we do not own, and restore any original Parts that you have removed. If we consent to a disposition of the removed Parts, the restoration must be with Parts we own or supply, or those supplied by a source approved by us. All Alterations and Modifications not removed when a Leased Item is returned to us shall become our property, without charge, free of encumbrances. You shall have no further interest in such Alteration or Modification or its proceeds. 17. ASSIGNMENT, SUBLEASE AND RELOCATION. You are not permitted to assign, transfer, sublease or otherwise dispose of this Agreement, any Transaction or any Item, in whole or in part. Any attempt to do so is void. You may relocate any Item anywhere in the United States except Arkansas, with prior notice to us. We may assign or grant a security interest(s) in this Agreement, any Transaction or any item, in whole or in part. Any claims you have under this Agreement may be brought only against us, and not against our assignees. 18. END OF LEASE TRANSACTION OPTIONS. To effect an end of lease option, you must give us one (1) month prior written notice of your desired end of lease option. If you do not notify us of your end of lease option, or if you elect to conclude the Transaction and a Leased Item is not returned to us within twelve (12) days following the end of the Term, the Transaction will automatically extend as described in Section 19 below. If you are not in default under this Agreement, you may choose any one of the following options: RENEW THE TRANSACTION. You may renew a Transaction with an EOL Designation (as indicated in Section "J" on the face of the Agreement) of "FM" one or more times, up to six (6) years from the expiration of the initial Term. The Payment Amount will be determined using the Fair Market Rental Value of the Leased Item projected as of the current Transaction expiration date. You may renew a Transaction with an EOL Designation of a prestated percentage for a renewal Term of one (1) year. The Payment Amount will be one-half (1/2) of the EOL Designation percentage multiplied by the Single Unit Price for the Leased Item. The renewal will be paid annually and due in advance. PURCHASE THE LEASED ITEM. You may purchase a Leased Item at the end of the Term. For a Leased Item with an EOL Designation of "FM", the purchase price will be determined using the projected Fair Market Sales Value as of the Transaction expiration date. For a Leased Item with an EOL Designation of a prestated percentage, the purchase price will be the prestated percentage multiplied by the Single Unit Price for the Leased Item. For a Leased Item with an EOL Designation of "$1", the purchase price will be one dollar ($1). You will pay any applicable taxes, Payment Amounts due through the day before the date of purchase, any other amounts due, and you will prepay all Financed Items listed on the face of this Agreement. Upon our receipt of all amounts due under this Agreement, we will transfer to you our right, title, and interest in and to such Leased Item on an "As Is, Where Is" basis. We will warrant the title Z125-5135-05 (09/95) 4 SUPP NO.: G00266385 ADDITIONAL TERMS PAGE 4 OF 4 free and clear only of all encumbrances created by us. Upon your written request we will provide to you a bill of sale. CONCLUDE THE TRANSACTION. You may end the Transaction on its expiration date. You will have the Leased Items packed and available for pickup within two (2) business days of such expiration date. 19. LEASE TRANSACTION EXTENSION. If you are not in default under this Agreement, the Lease Transaction will automatically extend unless you notify us of your choice of an end of lease option at least one (1) month prior to the end of the Term or if you elect to conclude the Transaction and the Leased Item is not returned to us within twelve (12) days following the end of the Term. The extension will be under the same terms and conditions then in effect, except that for Leased Items with an EOL Designation of "FM", the Payment Amount will not be less than the Fair Market Rental Value. The extension will continue until terminated by either party with one (1) month's prior written notice or six (6) years after the expiration of the initial Term, whichever comes first. 20. RETURN OF A LEASED ITEM. Unless otherwise agreed, you will be responsible for all of the following: a) arranging for the deinstallation and return of a Leased Item, freight prepaid, to a location we specify in the continental United States; b) the cost to qualify any Leased Item for the manufacturer's machine maintenance service, if available, or the cost to return any Leased Item to good repair and operating condition if the manufacturer does not offer machine maintenance service; and c) the cost of any Part or accessory that is not returned. 21. RISK OF DAMAGE, LOSS OR THEFT. We will pay for, and maintain insurance covering verified theft of, or damage to, the Leased Items ("Casualty Loss"). The deductible will be $5,000 per incident per location. In the event of a Casualty Loss, you will promptly notify us. If the Casualty Loss occurs before the Transaction Commencement Date, the Transaction will terminate without penalty. If the Casualty Loss occurs on of after the Transaction Commencement Date and we determine that the Leased Item can be economically repaired, you will have it repaired and we will reimburse you the reasonable cost of the repair, less the deductible. If the Leased Item can not be economically repaired, you will pay us the lesser of $5,000 or the Fair Market Sales Value of the Leased Item immediately before the Casualty Loss occurred. The Transaction will terminate effective as of the date of the Casualty Loss. At the expiration of the Transaction Term, if you claim a loss or theft of a Leased Item but have no police or fire department report to substantiate the loss or theft, we will consider it an end of lease purchase. You will pay the full purchase price as of the end of the Term. The insurance and $5,000 deductible will not apply. 22. TAXES AND ADDITIONAL CHARGES. You will pay, as additional Payment Amount, all taxes and charges levied by any government body in connection with any Transaction. If requested by us or required by a government body, you will make these payments directly to the government body and upon request, you will provide us with proof of payment. If you do not, we reserve the right to make the payment, whereupon you will reimburse us for the tax or charge and all related costs. You will not be responsible for taxes based on our net income on any Item. 23. INDEMNITY. This Agreement is a net lease. You indemnify us for any action, liability, claim, damage, and expense ("Claim") regarding any matter arising out of the Transaction, including reasonable legal and collection fees and expenses. You agree that, upon notice from us of the Claim, you shall assume full responsibility for the defense the Claim. You shall not be responsible for any Claim that results only from our sole negligence or willful misconduct. Your payment shall be in an amount such that after we pay any required taxes, including taxes on or measured by our net income, the balance will equal the Claim. The obligations under this Section will survive the expiration or termination of the Transaction. 24. LIABILITY INSURANCE. You will obtain and maintain liability insurance and name us as additional insured and loss payee. We shall credit any insurance benefits paid to us against your obligations under this Agreement. Upon our request, you will provide us proof of insurance. 25. SUBSTITUTE PERFORMANCE. If you do not maintain liability insurance, pay taxes and charges as required under this Agreement or discharge any encumbrance created by you on any Item, we reserve the right to substitute performance. You will pay us the cost thereof, as additional Payment Amount, together with all fees and expenses we incur rendering substitute performance on your behalf. 26. AUTHORIZATION TO SIGN FINANCING STATEMENTS. You authorize us to act as your agent and attorney-in-fact for the limited purpose of preparing, executing in your name, and filing on your behalf, financing statements or other documents covering the Transaction for the purpose of evidencing our interest in an Item. 27. EVENTS OF DEFAULT. You will be in default if: a) you do not pay any amount due under this Agreement within seven (7) days after its due date; b) you encumber, pledge, sell, assign, transfer, or dispose of this Agreement, any Transaction or any Lease Item or its Parts; c) you fail to maintain insurance as required under this Agreement; d) you or any Guarantor of your obligations under this Agreement make any misrepresentation in a credit application you give us; e) you make an assignment for the benefit of creditors; f) a trustee or receiver is appointed for you or for a substantial part of your property, with or without your consent; g) any petition or proceeding is filed by or against you under any bankruptcy, insolvency, or similar law; h) you or any Guarantor of your obligations under this Agreement cease doing business; or i) you or any Guarantor of your obligations under this Agreement breach any other provision of this Agreement or of any guaranty of your obligations under this Agreement, or any other agreement with us, and that breach continues for fifteen (15) days after we send you written notice. 28. REMEDIES. If you are in default, we may do one or more of the following: a) declare the Transaction to be in default and all amounts that are due or will be due under this Agreement to be immediately due and payable; b) terminate the Transaction; c) recover from you all amounts that are or will be due; d) attempt to satisfy amounts due with any Security Deposit or any other collateral pledged as security; e) repossess or render unusable any or all Items and retain all payments made as partial compensation for their use and depreciation; f) require you, at your expense, to assemble and ship any Item to a location we specify; g) require you to pay an amount equal to then current Payment Amount prorated based on a 30-day month, for each day any Item is not returned after the twelfth (12th) day following our request for the Item's return; h) recover from you all attorney's fees and legal expenses incurred in exercising any of our rights under this Agreement. If we repossess a Modification, you are responsible for restoring the remaining machine, at your expense, to good working order. Upon repossession or return of an Item following a default, we will dispose of it in a commercially reasonable manner. We will apply the net proceeds of such a disposition to the unpaid amounts due under the Transaction, after deducting the following from the proceeds of the disposition: a) in case of a sale, the estimated Fair Market Sales Value of the Leased Item as of the scheduled expiration of the Transaction; b) in case of a subsequent lease, the rental amounts due for any period beyond the scheduled expiration of the Transaction; and c) our expenses for the repossession and disposition, including reasonable attorney's fees and expenses. You will pay us any deficiency between the net proceeds and the unpaid amounts due. We will retain any excess net proceeds. We may pursue any other remedy available at law or in equity. 29. INVALID OR UNENFORCEABLE PROVISIONS; NO WAIVER. If any provision of this Agreement is held to be invalid or unenforceable, all other provisions remain in effect. If we fail to require full performance or if we waive any provision in this Agreement, that shall not prevent us from requiring full performance of all provisions in the future. 30. CHANGES. You authorize us to complete any identification information for any listed Item on the face of this Agreement without further authorization from you. You also authorize us to modify the Single Unit Price, Price and Payment Amount on the face of this Agreement if your Supplier changes its price to you for any Item. For any other changes to this Agreement to be valid, both parties must mutually agree in writing. 31. NOTICES. All notices, consents, and approvals from us will be given by us or by IBM. They will be delivered personally or mailed to the address specified on the face of this Agreement or in your monthly billing statement. Notices and requests from you to us must be submitted to the inquiry at address on your periodic invoice. 32. YOUR ADDITIONAL REPRESENTATIONS. You represent and convenant that you and any Guarantor of your obligations under this Agreement are, for Financed Items located in: a) Ohio, Maryland, Mississippi, Virginia, or West Virginia, a corporation as defined by the applicable state law; b) Pennsylvania, a business corporation as defined by Pennsylvania laws; and c) Alabama or Wisconsin, not purchasing the Financed Item for agricultural purposes. 33. GOVERNING LAW. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. BOTH PARTIES TO THIS AGREEMENT WAIVE ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION, PROCEEDING, COUNTERCLAIM OR ON ANY MATTER ARISING OUT OF, IN CONNECTION WITH, OR RELATED TO THIS AGREEMENT. 34. DEFINITIONS. ALTERATION is any change made to an Item that deviates from the manufacturer's design. DEDUCTIONS are the maximum Accelerated Cost Recovery System deductions for 5-year property and/or deductions for interest expense incurred to finance the purchase of Leased Items, as defined under the Internal Revenue Code of 1986, as amended. FAIR MARKET RENTAL VALUE is the value that would be obtained in an arm's length transaction between an informed and willing lessee and lessor under no compulsion to lease. FAIR MARKET SALES VALUE is the value that would be obtained in an arm's length transaction between an informed and willing buyer and seller under no compulsion to buy or sell. FINANCED ITEM is any item you finance with us under the terms of this Agreement and is listed on the face of this Agreement with a Trans. Code of S or T. IBM is International Business Machines Corporation. ITEM is a Leased or Financed Item. LEASED ITEM is any item you lease from us under the terms of this Agreement and is listed on the face of this Agreement with a Trans. Code of B, B', B+, B$, C, C', C+, C$ or L. MODIFICATION is any manufacturer's field installable upgrade, feature, or accessory added to any Leased Item or Financed Item. PART is any portion or integral element of a Leased Item. PROGRAM is the following, including features and any whole or partial copies: a) machine-readable instructions; b) a collection of machine-readable data, such as a data base; and c) related materials, including documentation and listings, in any form. The term "Program" includes any Program we finance under this Agreement. SUPPLIER is the provider of the Item. YOU, YOUR or LESSEE refer to you, our Customer. WE, US, OUR or LESSOR refer to: a) IBM Credit Corporation ("IBM Credit"), its subsidiaries or affiliates; b) a partnership in which IBM Credit is a partner; c) a business enterprise for which IBM Credit is an agent; or d) a corporation affiliated with or which files a consolidated or combined tax return with IBM Credit. Z125-5135-05 (09/95) EX-11.1 3 EXHIBIT 11.1 1 EXHIBIT 11.1 D.I.Y. HOME WAREHOUSE INC. FORM 10-Q COMPUTATION OF EARNINGS PER COMMON SHARE (UNAUDITED)
Three Months Ended Six Months Ended June 29, July 1, June 29, July 1, 1996 1995 1996 1995 ---- ---- ---- ---- Income applicable to common shares $2,029,585 $2,135,002 $1,920,794 $2,638,253 ========== ========== ========== ========== Weighted average common shares outstanding for the period 7,625,000 7,625,000 7,625,000 7,625,000 Dilutive effect of exercise of stock options -- -- -- -- ---------- ---------- ---------- ---------- Weighted average common shares, assuming issuance of the above securities 7,625,000 7,625,000 7,625,000 7,625,000 ========== ========== ========== ========== Earnings per common share: Primary $ 0.27 $ 0.28 $ 0.25 $ 0.35 Full diluted $ -- $ -- $ -- $ --
EX-27 4 EXHIBIT 27
5 1,000 6-MOS DEC-28-1996 DEC-31-1995 JUN-29-1996 1,102 0 75 0 44,772 47,325 49,324 8,573 88,704 23,760 28,484 22,913 0 0 12,448 88,704 88,669 88,669 63,189 63,189 0 0 1,338 4,375 1,737 2,638 0 0 0 2,638 0.35 0.35
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