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UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
Quarterly Report Under Section 13 or 15(d)
of the Securities Exchange Act of 1934
For Quarterly Period Ended August 31, 2003
Commission File Number 0-9599
HIA, INC.
Exact name of Registrant as specified in its charter)
New York 16-1028783
State or other jurisdiction of I.R.S. Employer
incorporation or organization Identification Number
4275 Forest Street
Denver, Colorado 80216
(Address of principal executive offices, zip code)
(303) 394-6040
(Registrant's telephone number, including area code)
______________________________________________________
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 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: 10,733,701 shares
of the Registrant's $.01 par value common stock were outstanding at
August 31, 2003.
HIA, INC.
INDEX
Part I. Financial Information
Item 1. Consolidated Financial Statements. . . . . 3
Item 2. Management's Discussion and
Analysis or FinancialCondition and
Results of Operations . . . . . . . . . . .9
Item 3. Quantitative and Qualitative
Disclosures about Market Risk . . . . . . 12
Item 4. Controls and Procedures . . . . . . . . ..13
Part II. Other Information
Item 1. Legal Proceedings . . . . . . . . . . . 14
Item 2. Changes in Securities and Use of
Proceeds. . . . . . . . . . . . . . . . 14
Item 3. Defaults upon Senior Securities . . . ... 14
Item 4. Submission of Matters to a Vote of
Security Holders . . . . . . . . . . . . 14
Item 5. Other Information . . . . . . . . . . . . 14
Item 6. Exhibits and Reports on Form 8-K . . . . 14
SIGNATURES . . . . . . . . . . . . . . . . . . . . .17
Part 1.
Item 1. Consolidated Financial Statements
Consolidated Balance Sheets as of August 31, 2003
and November 30, 2002. . . . . . . . . . . . . . . 4
Consolidated Statements of Operations for the
three and nine months ended August 31, 2003
and 2002 . . . . . . . . . . . . . . . . . . . .. . .6
Consolidated Statements of Cash Flows for
the nine months ended August 31, 2003 and 2002 . . . 7
Notes to Consolidated Financial Statements . . . . 8
Forward Looking Statements
Statements made in this Form 10-Q that are historical or current facts are
"forward-looking statements" made pursuant to the safe harbor provisions of
Section 27A of the Securities Act of 1933 ("The ACT") and Section 21E of the
Securities Exchange Act of 1934. These statements often can be identified
by the use of terms such as "may," "will," "expect," "believes," "anticipate,"
"estimated," "approximate," or "continue," or the negative thereof. The
Company intends that such forward-looking statements be subject to the safe
harbors for such statements. The Company wishes to caution readers not to
place undue reliance on any such forward-looking statements, which speak only
as of the date made. Any forward-looking statements represent management's
best judgements as to what may occur in the future. However, forward-looking
statements are subject to risks, uncertainties and important factors beyond
the control of the Company that could cause actual results and events to
differ materially from historical results of operations to revise any
forward-looking statements to reflect events or circumstances after the date
of such statement or to reflect the occurrence of anticipated or unanticipated
events.
HIA, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS
(Information as of November 30, 2002 is based upon an audited balance sheet.
All other information is unaudited.)
August 31, November 30,
2003 2002
ASSETS
Current Assets:
Cash $ 5,000 $ 7,000
Accounts receivable, net of
allowance for doubtful
accounts of
$121,000 and $225,000 5,848,000 2,702,000
Inventories 5,373,000 4,011,000
Other current assets 203,000 184,000
Total current assets 11,429,000 6,904,000
Property and equipment, at cost:
Leasehold improvements 349,000 337,000
Equipment 1,405,000 1,387,000
1,754,000 1,724,000
Less accumulated depreciation
and amortization 1,554,000 1,437,000
Net property and
equipment 200,000 287,000
Other assets 204,000 204,000
Goodwill, net of
amortization 1,151,000 1,151,000
of $383,000 and $383,000
Non-compete agreement,
net of amortization of
$64,000 and $52,000 86,000 98,000
TOTAL ASSETS $13,070,000 $8,644,000
The accompanying notes are an integral part of the consolidated financial
statements.
HIA, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEETS (Continued)
(Information as of November 30, 2002 is based upon an audited balance sheet.
All other information is unaudited).
August 31, November 30,
LIABILITIES 2003 2002
Current Liabilities:
Note payable to bank $2,483,000 $1,009,000
Current maturities of
long-term obligations 266,000 424,000
Accounts payable 1,842,000 294,000
Checks written in
excess of deposits 504,000 86,000
Accrued expenses and
other current liabilities 1,470,000 1,004,000
Total current liabilities 6,565,000 2,817,000
Long-term Obligations:
Notes payable, less
current maturities 682,000 860,000
Total long-term
obligations 682,000 860,000
TOTAL LIABILITIES 7,247,000 3,677,000
COMMITMENTS
STOCKHOLDERS' EQUITY
Common stock of $.01 par value;
authorized 20,000,000
shares: issued 13,108,196;
outstanding 10,733,701
and 9,861,525 131,000 131,000
Additional paid-in capital 3,109,000 3,109,000
Retained earnings 3,204,000 2,527,000
6,444,000 5,767,000
Less treasury stock:
2,374,495 and 3,246,671
shares at cost (621,000) (800,000)
Total stockholders'
equity 5,823,000 4,967,000
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $13,070,000 $8,644,000
The accompanying notes are an integral part of the consolidated financial
statements.
HIA, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
Nine Months Ended Three Months Ended
Aug 31,2003 Aug 31,2002 Aug 31,2003 Aug 31,2002
Net sales $23,703,000 $25,509,000 $11,943,000 11,186,000
Cost of sales 15,848,000 17,219,000 7,985,000 7,375,000
Gross profit 7,855,000 8,290,000 3,958,000 3,811,000
Selling, general
& administrative
expenses 6,723,000 6,929,000 2,656,000 2,853,000
Operating
income 1,132,000 1,361,000 1,302,000 958,000
Other income (expense):
Interest
income 46,000 61,000 19,000 34,000
Interest
expense (139,000) (184,000) (51,000) (68,000)
Misc. income
(expense) 30,000 34,000 11,000 12,000
Total other
expense (63,000) (89,000) (21,000) (22,000)
Income before income
tax expense 1,069,000 1,272,000 1,281,000 936,000
Income tax
expense 392,000 470,000 470,000 346,000
NET INCOME $677,000 $802,000 $811,000 $590,000
======= ========== ======== ========
Net income per share
Basic $ .07 $ .08 $ .08 $ .06
Diluted $ .07 $ .08 $ .08 $ .06
Weighted average common
shares outstanding:
Basic 10,029,882 10,173,825 10,171,092 10,015,526
Dilutive 10,029,882 10,215,491 10,171,092 10,015,526
The accompanying notes are an integral part of the consolidated financial
statements.
HIA, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
For the Nine Months Ended
Aug 31, 2003 Aug 31, 2002
OPERATING ACTIVITIES:
Net Income 677,000 $802,000
Adjustments to reconcile net income
to net cash used in operating activities:
Depreciation and
amortization 129,000 174,000
Stock Compensation - 0 - 15,000
Inventory Reserve 28,000 - 0 -
Changes in current assets and
current liabilities:
Accounts receivable (3,146,000) (1,996,000)
Inventories (1,390,000) (1,179,000)
Other current assets (19,000) 48,000
Accrued expenses and
other current
liabilities 466,000 653,000
Accounts payable 1,548,000 928,000
Decrease (increase)
in other assets - 0 - 7,000
NET CASH USED IN
OPERATING ACTIVITIES (1,707,000) (548,000)
INVESTING ACTIVITIES:
Purchases of property
and equipment (30,000) (82,000)
NET CASH USED IN
INVESTING ACTIVITIES (30,000) (82,000)
FINANCING ACTIVITIES:
Proceeds from note
payable to bank 8,064,000 7,749,000
Payments on borrowings
on note payable to bank (6,590,000) (6,700,000)
Repayments of long-term
debt (228,000) (219,000)
Payments on capital
lease obligations (108,000) (141,000)
Increase in checks written
in excess of deposits 418,000 148,000
Purchase of treasury stock (8,000) (235,000)
Sale of treasury stock 187,000 32,000
NET CASH PROVIDED BY
FINANCING ACTIVITIES 1,735,000 634,000
NET DECREASE IN CASH (2,000) 4,000
CASH, BEGINNING OF PERIOD 7,000 1,000
CASH, END OF PERIOD $ 5,000 $ 5,000
The accompanying notes are an integral part of the consolidated financial
statements
HIA, INC. AND SUBSIDIARY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A. Basis for Presentation
The accompanying unaudited consolidated financial statements have been
prepared in accordance with the instructions of Form 10-Q and do not include
all the information and footnotes required by generally accepted accounting
principles for complete financial statement. In the opinion of management,
all adjustments (consisting of normal recurring adjustments) considered
necessary for fair presentation have been included. Operating results for
the nine months ended August 31, 2003 are not necessarily indicative of the
results that may be obtained for the year ending November 30, 2003. These
statements should be read in conjunction with the consolidated financial
statements and notes thereto included in the Registration's Form 10-K for the
year ended November 30, 2002 filed with the Securities and Exchange Commission
on February 28, 2003.
B. Net Income Per Common Share
Statement of Financial Accounting Standards No. 128, "Earnings Per Share",
provides for the calculation of "Basic" and "Diluted" earnings per share.
Basic earnings (loss) per share includes no dilution and is computed by
dividing income (loss) available to common stockholders by the
weighted-average number of shares outstanding during the period
(10,029,882 and 10,171,092 for the nine months and three months ended
August 31, 2003). Diluted earnings per share reflect the potential of
securities that could share in the earnings of the Company, similar to fully
diluted earnings per share.
For the nine and three months ended August 31, 2003, stock options are not
considered in the computation of diluted earnings per share as their
inclusion would be anti-dilutive.
C. Stockholders' Equity
Purchase of Treasury Stock
On January 1, 2001, the Board of Directors granted an option to each of the
officers of the Company to purchase a total of 750,000 shares of treasury
stock at $.20 per share by December 31, 2003. The options' exercise price
was greater than the common stock's market price at the date of grant.
On July 18, 2001, the Board of Directors granted common stock options to ten
middle and senior managers of the Company. The options totaled 460,000
shares of which 165,000 shares of options expired on December 31, 2001 if not
subscribed by that date. The option price was $.30 per share. The remainder
of the options were to be exercised no later than December 31, 2002. As of
December 31, 2001, 105,000 shares were subscribed to by the managers which
meant that the remaining 60,000 options expired as of that date. Three
senior managers were given, as a bonus for 2001, an additional 16,667 shares
(valued at $.30 per share) which were granted on December 20, 2001 when the
market price was $.21 per share. As of December 31, 2002, senior managers
subscribed to 124,000 shares of options at a price of $.30 per share. The
remaining options outstanding, a total of 171,000 shares, expired on that
date.
On July 3, 2002, the Company purchased 420,000 shares of common stock from
a non-affiliated stockholder for approximately $.56 per share, a total
purchase price of $235,000.
On or about August 10, 2003, the three directors of the company exercised
options to purchase 250,000 shares each of HIA stock for $.20 per share,
a total of $150,000.
On September 15, 2003, the Company sent to all shareholders an offer to
purchase up to 1,000,000 shares of common stock at $.50 per share; the offer
to expire on October 13, 2003. The estimated legal and trust service fees
were estimated to be $40,000; a total purchase price of $540,000. The cash
required to repurchase the shares are to be borrowed from the bank under the
existing line of credit. The closing bid price at the time of the offer was
$.18 per share. If more than a total of 1,000,000 shares are tendered the
shares to be purchased will be selected through the pro-ration mechanism
described in the offer to purchase
On October 10, 2003, the Company extended the expiration of the offer until
5:00 p.m. on October 31, 2003.
D. Supplemental Disclosure of Cash Flow Information
Cash payments for interest were $139,000 and $184,000 for the nine months
ended August 31, 2003 and August 31, 2002. Cash payments for income taxes
were $ -0- and $232,000 for the nine months ended August 31, 2003 and
August 31, 2002.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
Liquidity and Capital Resources
The net cash used in operating activities increased by $1,159,000 for the
nine months ended August 31, 2003 as compared the nine months ended
August 31, 2002 primarily due to a decrease in net income of $125,000, an
increase in accounts receivable of $1,150,000, an increase in inventories
of $211,000, an increase in accrued expenses and other current liabilities
of $187,000, partially offset by an increase in accounts payable of
$620,000. The increase in accounts receivables were primarily due to the
increase in sales in the 3rd quarter of 2003 of $757,000 as compared to the
3rd quarter of 2002. The increase in accrued expenses and other current
liabilities was primarily due to the increase in the accrual for income taxes
of $154,000 when compared to the ending balance as of August 31, 2002. The
increase in accounts payable was primarily due to the increases in accounts
receivable and inventories.
The net cash used in investing activities decreased by $52,000 as a result
of the decrease in purchases of fixed assets for the nine months ended
August 31, 2003 as compared to the similar nine months in the prior year.
The net cash provided by financing activities increased by $1,101,000 was
primarily due to the increase in net borrowings to the bank of $425,000,
the increase in checks written in excess of deposits of $270,000 and the
decrease in purchases of treasury stock of $227,000 and the increase in the
sale of treasury stock of $155,000. The increase in net borrowings to the
bank and the increase in checks written in excess of deposits were primarily
attributable to the increase in accounts receivable.
On July 18, 2001, the Board of Directors granted common stock options to ten
middle and senior managers of the Company. The options totaled 460,000
shares of which 165,000 shares of options expired on December 31, 2001 if not
subscribed by that date. The option price was $.30 per share. The remainder
of the options were to be exercised no later than December 31, 2002. As of
December 31, 2001, 105,000 shares were subscribed to by the managers which
meant that the remaining 60,000 options expired as of that date. Three senior
managers were given, as a bonus for 2001, an additional 16,667 shares (valued
at $.30 per share) which were granted on December 20, 2001 when the market
price was $.21 per share. As of August 31, 2003, there were no options
remaining under this stock option offer.
On July 3, 2002, the Company purchased 420,000 shares of common stock from
a non-affiliated stockholder for approximately $.56 per share, a total
purchase price of $235,000.
On or about August 10, 2003, the three directors of the company exercised
options to purchase 250,000 shares each of HIA stock for $.20 per share,
a total of $150,000.
The following is a summary of working capital and current ratio for the
periods presented:
August 31, 2003 November 30, 2002
Working Capital $4,864,000 $4,087,000
Current Ratio 1.74 to 1 2.45 to 1
The Company's working capital increased by $777,000 during the nine months
ended August 31, 2003 as compared to November 30, 2002 primarily as a result
of the $677,000 net income. Management believes that the present working
capital is adequate to conduct its present operations. The Company does not
anticipate any additional material capital expenditures for the remainder of
fiscal 2003 with the exception of the outcome of the tender offer initiated
September 15, 2003 which may result in a maximum capital outlay of $540,000
(approved by the bank to be borrowed under the existing line of credit). As
of August 31, 2003, the Company and its subsidiary have an available
line-of-credit of $5,750,000. As of August 31, 2003, $3,267,000 is unused
under the line of credit. In August of 2002, the Company executed a new loan
agreement which increased the maximum line of credit from $5,000,000 to
$5,750,000 and extended the expiration date of the overall agreement to
June 30, 2004. The line-of-credit agreement limits the payment of dividends
by CPS Distributors, inc. and its subsidiaries ("CPS") to HIA, Inc. CPS is
the wholly-owned subsidiary of HIA, Inc. The line-of-credit agreement also
limits the payment of any expenses of HIA, Inc. by CPS in excess of $50,000
during any twelve-month period. This restriction does not have a significant
impact on HIA, Inc.'s ability to meet its cash needs as its cash needs are
minimal. On June 17, 2003, the Company executed an amendment to the loan
agreement with Wells Fargo Bank regarding a change in the debt covenants.
The bank agreed to waive the minimum debt service covenant for the 2nd
quarter of fiscal 2003 and decrease the covenant restrictions for the
remainder of the term of the agreement.
The decrease in the current ratio as of August 31, 2003 as compared to
November 30, 2002 is primarily attributable to the relative increase in
accounts receivable of $3,146,000 and the increase in inventories of
$1,362,000 as compared to the increase of notes payable to bank of
$1,474,000 and the increase of $1,548,000 in accounts payable, the increase
of $466,000 in other current liabilities and an increase in checks written
against future deposits of $418,000.
Income Taxes
As of August 31, 2003, the Company has recorded a current net deferred tax
asset totaling $170,000 and has recorded a noncurrent net deferred tax
asset totaling $53,000. Based upon the Company's recent history of taxable
income and its projections for future earnings, management believes that it
is more likely than not that sufficient taxable income will be generated in
the near term to utilize the net deferred tax assets.
Results of Operations
Three Months Ended August 31, 2003 Compared to Three Months Ended
August 31, 2002.
Net sales for the three months ended August 31, 2003 were up $757,000 or 6.77%
as compared to the three months ended August 31, 2002 primarily due to the
easing of drought conditions and water restrictions being lifted in the Rocky
Mountain region.
Cost of Sales were up $610,000 for the three months ended August 31, 2003
as compared to the three months ended August 31, 2002 primarily as a result
of the relative increase in sales during the three months of fiscal 2003 as
compared to the three months of fiscal 2002.
Gross profit was 33.1% during the three months ended August 31, 2003 as
compared to 34.1% during the three months ended August 31, 2002 a decrease
of 1.0%. The decrease was primarily due competitive market pricing on
materials provided for commercial work in the 3rd quarter 2003 as compared
to the 3rd quarter 2002.
Selling, general and administrative expenses decreased $197,000 for the three
months ended August 31, 2003 as compared to August 31, 2002.
Other expenses decreased by $1,000 for the three months ended August 31, 2003
as compared to the three months ended August 31, 2002.
Net income increased by $221,000 for the three months ended August 31, 2003
as compared to the three months ended August 31, 2002 primarily due to the
increase in gross profit of $147,000, the decrease in selling, general and
administrative expenses of $197,000, partially offset by the increase in
income taxes of $124,000.
Nine Months Ended August 31, 2003 Compared to Nine Months Ended
August 31, 2002.
Net sales decreased by $1,806,000 for the nine months ended August 31, 2003
as compared to August 31, 2002 primarily due to the continued effects in the
1st and 2nd quarters in 2003 of the 2002 related drought conditions and
economic circumstances in the Rocky Mountain Region combined with the wet
spring weather conditions experienced in the 2nd quarter of fiscal 2003 which
delayed work by irrigation contractors particularly in the months of March
and April.
Cost of Sales decreased by $1,371,000 for the nine months ended
August 31, 2003 as compared to August 31, 2002 primarily as a result of the
relative decrease in sales during the first nine months of fiscal 2003 as
compared to the first nine months of fiscal 2002
Gross profit was 33.1% during the nine months ended August 31, 2003 as
compared to 32.5% during the nine months ended August 31, 2002 an increase
of .60% primarily due to the combination of better pricing from vendors
and more selective pricing on slower moving items of inventory to customers.
Selling, general and administrative expenses decreased by $206,000 during
the nine months ended August 31, 2003 as compared to August 31, 2002.
Other expenses decreased by $26,000 during the nine months ended
August 31, 2003 as compared to August 31, 2002 primarily due to the reduction
of interest expense, due to the significantly lower amount of interest paid on
outstanding balances of total current and long term debt of $948,000 as of
August 31, 2003, compared to $1,409,000 as of August 31, 2002.
Net income decreased $125,000 for the nine months ended August 31, 2003 as
compared to the nine months ended August 31, 2002 primarily due to the
decrease in gross profit of $435,000 partially offset by the decrease in
selling, general and administrative expenses of $206,000, a decrease in other
expenses of $26,000 and a decrease in income tax of $78,000.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
The Company is exposed to market risk through interest rates related to its
investment of current cash and cash equivalents. These funds are generally
highly liquid with short-term maturities, and the related market risk is not
considered material. The Company's note payable to bank has a variable
interest rate. A 10% increase in short-term interest rates on the note
payable to bank of $2,483,000 would increase the Company's yearly interest
expense by approximately $10,000, assuming borrowed amounts remain
outstanding at current levels. The Company's management believes that
fluctuation in interest rates in the near term will not materially affect
the Company's consolidated operating results, financial position or cash flow.
Item 4. Controls and Procedures
The Company maintains a set of disclosure controls and procedures that
are designed to ensure that information required to be disclosed in the
reports filed by the Company under the Securities Exchange Act of 1934,
as amended is recorded, processed, summarized and reported within the time
periods specified in the SEC's rules and forms. As of the end of the
quarterly period covered by this report, the Company carried out an
evaluation, under the supervision of the President and Chief Financial
Officer, of the effectiveness of the design and operation of our disclosure
controls and procedures pursuant to Rule 13a-14 of the Exchange Act. Based
on that evaluation, the President and Chief Financial Officer concluded that
our disclosure controls and procedures are effective.
There have been no significant changes in the Company's internal controls
or other factors that could significantly affect those controls subsequent
to the date of their evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
Part II
Item 1. Legal Proceedings
NONE
Item 2. Changes in Securities and Use of Proceeds
NONE
Item 3. Defaults Upon Senior Securities
NONE
Item 4. Submission of Matters to a Vote of Security Holders
NONE
Item 5. Other Information
NONE
Item 6. Exhibits and Reports on Form 8-K
a.) The following documents are filed as exhibits to this Form 10Q:
Exhibit (32) Section 1350 Certification
Exhibit (31) Rule 13a-14(a)/15d-14(a) Certification
b.) Reports of Form 8-K
NONE
Exhibit 32
Certification Pursuant to Section 1350 of Chapter 63
Of Title 18 of the United States Code
I, Alan C. Bergold, the President and Chief Financial Officer of HIA, Inc.,
certify pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of 2002, that: (i) the report fully
complies with the requirements of Section 13(a) or 15(d) of the Securities
Exchange Act of 1934 and (ii) the information contained in the report fairly
presents, in all material respects, the financial condition and results of
operations of HIA, Inc.
__________/s/_________________________
Alan C. Bergold
President & Chief Financial Officer
Exhibit 31
CERTIFICATION
I, Alan C. Bergold, certify that:
1. I have reviewed this quarterly report on Form 10-Q of HIA, Inc.;
2. Based on my knowledge, this report does not contain any untrue statement
of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements
were made, not misleading with respect to the period covered by this
report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and
cash flows of the registrant as of, and for, the periods presented in
this report;
4. The registrant's other certifying officers and I are responsible for
establishing and maintaining disclosure controls and procedures
(as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) for the
registrant and have:
a) designed such disclosure controls and procedures, or caused such
disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the
registrant, including its consolidated subsidiaries, is made
known to us by others within those entities, particularly during
the period in which this report is being prepared;
b) evaluated the effectiveness of the registrant's disclosure
controls and procedures and presented in this report our
conclusions about the effectiveness of the disclosure controls
and procedures, as of the end of the period covered by this
report based on such evaluation; and
c) disclosed in this report any change in the registrant's internal
control over financial reporting that occurred during the
registrant's most recent fiscal quarter (the registrant's fourth
fiscal quarter in the case of an annual report) that has
materially affected or is reasonably likely to materially affect,
the registrant's internal control over financial reporting; and
5. The registrant's other certifying officers and I have disclosed, based on
our most recent evaluation of internal control over financial reporting to
the registrant's auditors and the audit committee of the registrant's
board of directors (or persons performing the equivalent functions):
a) all significant deficiencies and material weaknesses in the design
or operation of internal control over financial reporting which
are reasonably likely to adversely affect the registrant's ability
to record, process, summarize and report financial information;
and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's
internal control over financial reporting.
Date: October 14, 2003 ________________/s/___________
Alan C. Bergold
President & Chief Financial Officer
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HIA, INC.
Date: October 14, 2003 ________/s/_____________________
Alan C. Bergold
Chief Financial Officer &
President