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, 2002

                          Commission File Number 0-9599

                                    HIA, INC.

             (Exact name of Registrant as specified in its charter)

        New York                                             16-1028783
        State or other jurisdiction                     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:  9,861,526  shares of the
Registrant's $.01 par value common stock were outstanding at August 31, 2002.



<PAGE>



                                    HIA, INC.
                                      INDEX

Part I.  Financial Information

         Item 1.  Consolidated Financial Statements.  . . . . . . . . . . 3

         Item 2.  Management's Discussion and Analysis or Financial Condition
                  and Results of Operations . . . . . . . . . . . . . . .11


Part II.  Other Information

         Item 1.  Legal Proceedings . . . . . .. . . . . . . . . . . . .  15

         Item 2.  Changes in Securities and Use of Proceeds. .  . . . . . 15

         Item 3.  Defaults upon Senior Securities . . . . . . . . . . . . 15

         Item 4.  Submission of Matters to a Vote of Security Holders . . 15

         Item 5.  Certificate Pursuant to Section 1350 of Chapter 63
                  and 906 . . . . . . . . . . . . . . . . . . . . . . . . 15

         Item 6.  Exhibits and Reports on Form 8-K . . .  . . . . . . . . 15

SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .18




















                                     Part 1.

Item 1.  Consolidated Financial Statements

         Consolidated Balance Sheets as of August 31, 2002
         and November 30, 2001. . . .. . . . . . . . . . . . . . . . . . .  4

         Consolidated Statements of Operations for the three and nine months
         ended August 31, 2002 and 2001 . . . . . . . . . . . . . . . . . . 6

         Consolidated Statements of Cash Flows for the nine months
         ended August 31, 2002 and 2001 . . . . . . . . . . . . . . . . . . 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.






<PAGE>




                            HIA, INC. AND SUBSIDIARY

                           CONSOLIDATED BALANCE SHEETS


(Information as of November 30, 2001 is based upon an audited balance sheet. All
other information is unaudited.)
<TABLE>

                                                                                August 31,            November 30,
                                                                                   2002                2001
                                                                                   ----                ----
ASSETS
<S>                                                                         <C>                      <C>
Current Assets:
  Cash                                                                          $      5,000              $         1,000
  Accounts receivable, net of allowance for
       doubtful accounts of $218,000 and $146,000                                  5,448,000                    3,452,000
  Inventories                                                                      4,963,000                    3,784,000
  Other current assets                                                               156,000                      204,000
                                                                                   ----------                 -------------
Total current assets                                                              10,572,000                    7,441,000
                                                                                   ----------                 -------------

Property and equipment, at cost:
  Leasehold improvements                                                             337,000                      289,000
  Equipment                                                                        1,381,000                    1,347,000
                                                                                   ---------                    ---------
                                                                                   1,718,000                    1,636,000
Less accumulated depreciation
     and amortization                                                              1,378,000                    1,216,000
                                                                                   ---------                    ---------

Net property and equipment                                                           340,000                      420,000

Other assets                                                                         188,000                      195,000
Goodwill, net of amortization                                                      1,151,000                    1,151,000
  of $383,000 and $383,000
Non-compete agreement, net of amortization
  of $49,000 and $37,000                                                             101,000                      113,000
                                                                                   ---------                -------------

TOTAL ASSETS                                                                     $12,352,000                   $9,320,000
                                                                                 ===========                   ==========

</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.


<PAGE>



                            HIA, INC. AND SUBSIDIARY

                     CONSOLIDATED BALANCE SHEETS (Continued)

(Information as of November 30, 2001 is based upon an audited balance sheet. All
other information is unaudited).

<TABLE>
                                                                                August 31,                November 30,
LIABILITIES                                                                        2002                  2001
                                                                                   ----                  ----
<S>                                                                           <C>                       <C>
Current Liabilities:
  Note payable to bank                                                          $2,864,000                  $1,815,000
  Current maturities of long-term obligations                                      449,000                     487,000
  Accounts payable                                                               1,405,000                     477,000
  Checks written in excess of deposits                                             355,000                     207,000
  Accrued expenses and other current liabilities                                 1,246,000                     593,000
                                                                               -----------               -------------

Total current liabilities                                                        6,319,000                   3,579,000
                                                                               -----------               -------------

Long-term Obligations:
  Notes payable, less current maturities                                           946,000                  1,165,000
  Capital lease obligations, less current maturities                                14,000                    117,000
                                                                             -------------               ------------
Total long-term obligations                                                        960,000                  1,282,000
                                                                               -----------                -----------

TOTAL LIABILITIES                                                                7,279,000                  4,861,000
                                                                               -----------              -------------

COMMITMENTS

STOCKHOLDERS' EQUITY
Common stock of $.01 par value;
  authorized 20,000,000 shares: issued
  13,108,196; outstanding 9,861,526
  and 10,126,525                                                                  131,000                     131,000
Additional paid-in capital                                                      3,109,000                   3,109,000
Retained earnings                                                               2,633,000                   1,831,000
                                                                              -----------                  ----------
                                                                                5,873,000                   5,071,000
Less treasury stock: 3,246,670 and
  2,981,671 shares at cost                                                       (800,000)                   (612,000)
                                                                            -------------             ---------------
Total stockholders' equity                                                      5,073,000                   4,459,000
                                                                               ----------               -------------

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY                                                          $12,352,000                  $9,320,000
                                                                        ==================                 ==========

</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.

<PAGE>
                            HIA, INC. AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF OPERATIONS
                                   (unaudited)
<TABLE>
                                            Nine Months Ended                     Three Months Ended
                                            -------------------                 --------------------
                                         Aug 31, 2002    Aug 31, 2001              Aug 31, 2002    Aug 31, 2001
<S>                                     <C>             <C>                       <C>              <C>

Net sales                                $25,509,000      $24,786,000              $11,186,000      $11,728,000
Cost of sales                             17,219,000       17,555,000                7,375,000        8,364,000
                                       -------------    -------------              -----------     ------------
Gross profit                               8,290,000        7,231,000                3,811,000        3,364,000

Selling, general
 & administrative
 expenses                                  6,929,000        6,496,000                2,853,000        2,226,000
                                           ---------       ----------            -------------        ---------


Operating income                           1,361,000          735,000                  958,000        1,138,000

Other income (expense):
  Interest income                             61,000           68,000                   34,000            4,000
  Interest expense                          (184,000)        (319,000)                 (68,000)         (99,000)
  Misc. income (expense)                      34,000           36,000                   12,000           39,000
                                        ------------          -------               ----------    --------------
Total other expense                          (89,000)        (215,000)                 (22,000)         (56,000)

Income before income
   tax expense                             1,272,000          520,000                  936,000        1,082,000
Income tax  expense                          470,000          206,000                  346,000          206,000
                                          ----------         ---------               ---------       ----------

NET INCOME                                  $802,000          $314,000                $590,000         $876,000
                                             =======          ========                ========         ========

Net income per share
  Basic                                     $   .08            $   .03                 $   .06          $   .09
  Diluted                                   $   .08            $   .03                 $   .06          $   .09

Weighted average common shares outstanding:
      Basic                            10,173,825            10,189,974               10,015,526      10,192,581
      Dilutive                         10,215,491            10,267,141               10,015,526      10,229,054
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.

<PAGE>


                            HIA, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
                                   (unaudited)
<TABLE>
                                                                                              For the Nine Months Ended
                                                                                           Aug 31, 2002        Aug 31, 2001
OPERATING ACTIVITIES:
<S>                                                                                     <C>                     <C>
Net Income                                                                                $802,000                $314,000
Adjustments to reconcile net income
   to net cash used  in operating activities:
      Depreciation and amortization                                                        174,000                 279,000
      Stock Compensation                                                                    15,000                  - 0 -
      Changes in current assets and
         current liabilities:
       Accounts receivable                                                              (1,996,000)            (2,333,000)
       Inventories                                                                      (1,179,000)              (801,000)
       Other current assets                                                                 48,000                 14,000
       Accrued expenses and other current liabilities                                      653,000                206,000
       Accounts payable                                                                    928,000              1,943,000
       Decrease (increase) in other assets                                                  7,000                  (6,000)
                                                                                 -----------------           -------------
NET CASH USED IN
  OPERATING ACTIVITIES                                                                   (548,000)               (384,000)
                                                                                         ---------           -------------

INVESTING ACTIVITIES:
  Purchases of property and equipment                                                      (82,000)               (42,000)
NET CASH USED IN
  INVESTING ACTIVITIES                                                                     (82,000)               (42,000)
                                                                                    ---------------            -----------

FINANCING ACTIVITIES:
  Proceeds from note payable to bank                                                     7,749,000              8,437,000
  Payments on borrowings on note payable to bank                                        (6,700,000)            (7,608,000)
  Repayments of long-term debt                                                            (219,000)              (217,000)
  Payments on capital lease obligations                                                   (141,000)              (129,000)
  Increase in checks written in excess of deposits                                         148,000                 42,000
  Purchase of treasury stock                                                              (235,000)              (249,000)
  Sale of treasury stock                                                                    32,000                150,000
                                                                                     -------------           ------------
 NET CASH PROVIDED BY
    FINANCING ACTIVITIES                                                                   634,000                426,000
                                                                                     -------------           ------------

NET DECREASE IN CASH                                                                         4,000                     --

CASH, BEGINNING OF PERIOD                                                                    1,000                     --
                                                                                     -------------       ----------------

CASH, END OF PERIOD                                                                    $     5,000                 $    -
                                                                                      ============         ==============

</TABLE>
The  accompanying  notes  are an  integral  part of the  consolidated  financial
statements
<PAGE>
                            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,  2002 are not  necessarily  indicative  of the  results  that may be
obtained for the year ending November 30, 2002. 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, 2001
filed with the Securities and Exchange Commission on February 28, 2002.


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  per share  includes  no dilution  and is  computed by dividing  income
available  to  common  stockholders  by the  weighted-average  number  of shares
outstanding  for the period  (10,173,825  and 10,015,526 for the nine months and
three months  ended August 31,  2002).  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  months  ended  August 31,  2002 and August 31,  2001,  total stock
options  in the  amount  of  295,000  and  295,000  are  not  considered  in the
computation  of  diluted   earnings  per  share  as  their  inclusion  would  be
anti-dilutive.  Included in the  dilutive  earnings  per share  computation  are
750,000 options.


C.       Stockholders' Equity

Purchase of Treasury Stock

On October 31, 2000, the Company sent to all its stockholders a tender offer for
up to  3,000,000  shares of its common  stock for a  purchase  price of $.25 per
share. The offer expired on December 15, 2000 and on January 4, 2001, a total of
732,956  shares of common  stock were  tendered  for a total  purchase  price of
$183,239. A total of $56,677 was incurred for legal, accounting,  transfer agent
and other related costs, related to this tender offer.

During  January and  February  2001,  the Company  acquired  from  non-affiliate
stockholders 33,500 shares of its common stock at a price of $.25 per share.

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 August 31, 2002, 270,000 options remain 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.


Shareholders' Agreement

On February 14, 2001,  the Company and Carl J. Bentley,  Alan C. Bergold and Don
Champlin   (collectively,   the   "Shareholders")   entered   into  an   amended
Shareholders' Agreement. Upon the death of any Shareholder, the Shareholders and
the Company shall purchase, and the executor,  administrator,  surviving spouse,
or other legal  representative of the Deceased  Shareholder's  estate shall sell
the shares of common stock of the Company owned by the Deceased  shareholder  at
the time of his  death.  The  price  per  share of each  share of  common  stock
purchased upon the death of any  Shareholder  shall be the greater of nine times
the average net profit of the Company as defined in the Shareholders'  Agreement
for the prior fiscal year divided by the number of shares of common stock of the
Company  issued and  outstanding  as of the end of such fiscal year or $1.35 per
share. In order to fund the purchase of shares of common stock upon the death of
a Shareholder,  each Shareholder  purchased life insurance policies on the lives
of the other two Shareholders.  If the aggregate number of the Deceased's shares
of common stock is greater than the aggregate number of the Deceased's shares of
common stock remaining after the purchase by each of the surviving  Shareholders
for an amount  equal to the  purchase  price  multiplied  by the  number of such
remaining  shares of common  stock.  stock.  The Company  shall pay the Deceased
Shareholder's estate in 120 monthly installments with interest at 6% per year.


D.       Recent Accounting Pronouncements

In  June  2001,  the  Financial   Accounting  Standards  Board  ("FASB")  issued
Statements of Financial  Accounting  Standards  No. 141 "Business  Combinations"
("SFAS 141") and No. 142 "Goodwill and Other  Intangible  Assets"  ("SFAS 142").
SFAS 141 requires all business combinations  initiated after June 30, 2001 to be
accounted for under the purchase method. For all business combinations for which
the date of  acquisition  is  after  June 30,  2001,  SFAS 141 also  establishes
specific  criteria for the  recognition  of intangible  assets  separately  from
goodwill  and  requires   unallocated   negative  goodwill  to  be  written  off
immediately as an extraordinary  gain, rather than deferred and amortized.  SFAS
142 changes the  accounting  for goodwill and other  intangible  assets after an
acquisition.  The most significant changes made by SFAS 142 are: 1) goodwill and
intangible assets with indefinite lives will no longer be amortized; 2) goodwill
and  intangible  assets with  indefinite  lives must be tested for impairment at
least annually; and 3) the amortization period for intangible assets with finite
lives will no longer be limited to forty years. SFAS 142 is effective for fiscal
years  beginning after December 15, 2001,  with early  application  permitted in
certain  circumstances.  The Company  does not believe that the adoption of SFAS
141  will  have  a  material  effect  on  its  financial  position,  results  of
operations, or cash flows. The Company has adopted SFAS 142 in the first quarter
of the fiscal year ending November 30, 2002.

In accordance with SFAS No. 142, the Company  discontinued  the  amortization of
goodwill effective December 1, 2001. Results of operations prior to the adoption
of SFAS No. 142 are not  restated.  The  following  reconciles  the reported net
income and earnings per share to that which would have resulted had SFAS No. 142
been applied to the nine month period ended August 31, 2001.

                                                          August 31, 2001

         Reported net income                                   $314,000
         Add:  Goodwill amortization, net of tax                114,000
                                                            -----------

         Adjusted net income                                   $428,000
                                                               ========

         Reported basic income per share                       $    .03
         Add:  Goodwill amortization, net of tax, per basic
               share                                                .01
                                                          -------------

         Adjusted basic income per share                       $    .04

In June 2001,  the FASB also  approved for issuance  SFAS 143 "Asset  Retirement
Obligations."  SFAS  143  establishes  accounting  requirements  for  retirement
obligations associated with tangible long-lived assets, including (1) the timing
of the liability  recognition,  (2) initial  measurement of the  liability,  (3)
allocation of asset  retirement cost to expense,  (4) subsequent  measurement of
the liability and (5) financial statement disclosures. SFAS 143 requires that an
asset  retirement  cost should be capitalized as part of the cost of the related
long-lived  asset and  subsequently  allocated to expense using a systematic and
rational  method.  The Company will adopt the statement  effective no later than
January 1, 2003,  as required.  The  transition  adjustment  resulting  from the
adoption  of SFAS 143 will be  reported  as a  cumulative  effect of a change in
accounting  principle.  The Company  does not believe  that the adoption of this
statement  will have a material  effect on its  financial  position,  results of
operations, or cash flows.

In October 2001, the FASB also approved SFAS 144,  Accounting for the Impairment
or Disposal of Long-Lived Assets. SFAS 144 replaces SFAS 121, Accounting for the
Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of. The
new accounting model for long-lived  assets to be disposed of by sale applies to
all  long-lived  assets,  including  discontinued  operations,  and replaces the
provisions of APB Opinion No. 30, Reporting Results of Operations-Reporting  the
Effects of Disposal of a Segment of a Business,  for the disposal of segments of
a business.  Statement 144 requires that those long-lived  assets be measured at
the lower of carrying amount or fair value less cost to sell,  whether  reported
in continuing operations or in discontinued operations.  Therefore, discontinued
operations will no longer be measured at net realizable value or include amounts
for operating losses that have not yet occurred. Statement 144 also broadens the
reporting of discontinued operations to include all components of an entity with
operations that can be  distinguished  from the rest of the entity and that will
be  eliminated  from  the  ongoing  operations  of  the  entity  in  a  disposal
transaction.  The  provisions  of  Statement  144 are  effective  for  financial
statements  issued for fiscal  years  beginning  after  December  15,  2001 and,
generally,  are to be applied  prospectively.  The Company does not believe that
the  adoption of this  statement  will have a material  effect on its  financial
position, results of operations, or cash flows.


<PAGE>



In April 2002, the FASB approved for issuance Statements of Financial Accounting
Standards No. 145, "Rescission of FASB Statements No. 4, 44 and 64, Amendment of
SFAS 13, and Technical  Corrections"  ("SFAS 145").  SFAS 145 rescinds  previous
accounting guidance,  which required all gains and losses from extinguishment of
debt be classified as an extraordinary  item. Under SFAS 145  classification  of
debt  extinguishment  depends on the facts and circumstances of the transaction.
SFAS 145 is effective for fiscal years beginning after May 15, 2002 and adoption
is not expected to have a material effect on the Company's financial position or
results of its operations.

In July 2002, the FASB issued Statements of Financial  Accounting  Standards No.
146,  "Accounting for Costs Associated with Exit or Disposal  Activities"  (SFAS
146).  SFAS 146 requires  companies to recognize  costs  associated with exit or
disposal  activities  when  they  are  incurred  rather  than  at the  date of a
commitment  to an exit or disposal  plan.  Examples of costs covered by SFAS 146
include lease  termination  costs and certain employee  severance costs that are
associated with a restructuring, discontinued operation, plant closing, or other
exit or disposal  activity.  SFAS 146 is to be applied  prospectively to exit or
disposal activities  initiated after December 31, 2002. The adoption of SFAS 146
is not expected to have a material effect on the Company's financial position or
results of its operations.


E.       Supplemental Disclosure of Cash Flow Information

Cash  payments for interest were $184,000 and $319,000 for the nine months ended
August 31, 2002 and 2001.  Cash  payments  for income  taxes were  $232,000  and
$229,000 for the nine months ended August 31, 2002 and 2001.



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 $164,000 for the nine
months  ended  August 31, 2002 as compared the nine months ended August 31, 2001
primarily  due to an increase in net income of $488,000,  a decrease in accounts
receivable  of $337,000 and an increase in accrued  expenses  and other  current
liabilities of $447,000  partially  offset by the decrease in  depreciation  and
amortization  of  $105,000,  an  increase in  inventories  of  $378,000,  and an
decrease in accounts payable of $1,015,000. The decrease in accounts receivables
were  primarily due to  significantly  higher balance of receivables at November
30,  2000 as compared to November  30, 2001 a  difference  of $480,000  somewhat
offset by the  increase in sales  (6.6%) in the 3rd quarter  2002 as compared to
the 3rd  quarter  2001.  The  increase  in accrued  expenses  and other  current
liabilities was primarily due to an increase in the accrual of management bonus'
of $326,000, as a result of the higher earnings,  and an increase in the accrual
for profit  sharing of $58,000  for the nine  months  ended  August 31,  2002 as
compared to August 31, 2001. The decrease in  depreciation  and  amortization of
$105,000 was primarily due to the cessation of the amortizing of goodwill, which
took effect on December 1, 2001. The increase in  inventories  was primarily due
to the opening of a new branch in West Denver opened in March 2002. The decrease
in accounts  payable was  primarily due to the cash  generated  from income from
operating  activities  of  $383,000  and the  increase  of  $447,000  in accrued
expenses and current liabilities.

The net cash used in  investing  activities  increased by $40,000 as a result of
the  increase in  purchases of fixed assets for the nine months ended August 31,
2002 as compared to the similar nine months in the prior year.

The net  cash  provided  by  financing  activities  increased  by  $208,000  was
primarily  due to the increase in net  borrowings  to the bank of $220,000,  the
increase in checks written in excess of deposits of $106,000 partially offset by
the  decrease  net sales of  treasury  stock of  $104,000.  The  increase in net
borrowings to the bank was primarily due to the decrease in accounts payable.

The  purchase of treasury  stock for the nine months ended August 31, 2001 was a
result of the tender offer sent to all its  shareholders on October 31, 2000 for
up to  3,000,000  shares of its common  stock for a  purchase  price of $.25 per
share. The offer expired on December 15, 2000 and on January 4, 2001, a total of
732,956  shares of common  stock were  tendered  for a total  purchase  price of
$183,239. A total of approximately  $57,000 was incurred for legal,  accounting,
transfer  agent and other  related  costs,  related  to this  tender  offer.  In
addition,   during  January  and  February  2001,  the  Company   acquired  from
non-affiliate  stockholders 33,500 shares of its common stock at a price of $.25
per share.

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, 2002, 270,000 options remain 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.

The following is a summary of working  capital and current ratio for the periods
presented:

                              August 31, 2002                 November 30, 2001
                              ---------------                 -----------------
         Working Capital       $4,523,000                             $3,862,000
         Current Ratio         1.67 to 1                               2.08 to 1

The Company's working capital increased by $661,000 during the nine months ended
August 31, 2002 as compared to November  30, 2001  primarily  as a result of the
$802,000 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 2002. As of
August 31, 2002, the Company and its subsidiary have an available line-of-credit
of  $5,750,000.  As of August 31, 2002,  $2,136,000  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 12, 2001,
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 1st and 2nd quarters of fiscal 2001 and decrease
the covenant restrictions for the remainder of the term of the agreement.


The decrease in the current  ratio as of August 31, 2002 as compared to November
30,  2001  is  primarily  attributable  to the  relative  increase  in  accounts
receivable  of  $1,996,000  and the increase in  inventories  of  $1,179,000  as
compared to the increase of notes payable to bank of $1,049,000 and the increase
of $1,729,000 in accounts payable and other current liabilities.


Income Taxes

As of August 31, 2002, the Company has recorded a current net deferred tax asset
totaling  $152,000 and has recorded a noncurrent net deferred tax asset totaling
$36,000.  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, 2002 Compared to Three Months Ended August 31,
2001.

Net sales for the three months ended August 31, 2002 were down  $542,000 or 4.6%
as compared  to August 31, 2001  primarily  due to the  drought  conditions  and
economic recession in the Rocky Mountain Region.

Cost of Sales were down  $989,000  for the three months ended August 31, 2002 as
compared to the three months ended August 31, 2001  primarily as a result of the
cost of the  decrease in sales of  approximately  $389,000  and the  increase in
gross  margin  (lower  cost to every $1 of sales)  of 5.4% or a total  effect of
lowering the cost of sales by approximately $600,000.

Gross profit was 34.1% during the three months ended August 31, 2002 as compared
to 28.7% during the three months ended August 31, 2001 an increase of 5.4%.  The
increase  was  primarily  due to the  combination  of  improved  discounts  from
vendors,  better pricing to  customers/more  selective  pricing on slower moving
items of  inventory  to  customers  and a positive  variance  in  write-offs  of
obsolete/shrinkage of inventory of $255,000.

Selling,  general and  administrative  expenses increased $627,000 for the three
months ended August 31, 2002 as compared to August 31, 2001 primarily due to the
increase in expenses for the new Lakewood branch (opened March 2002) of $88,000,
the increase of payroll of $283,000,  the increase of the allowance  reserve for
doubtful  accounts of $113,000.  The increase in payroll is primarily  due to an
increase in the accrual of  management  bonuses of $180,000,  as a result of the
higher  earnings,  and an increase in the accrual for profit sharing of $36,000.
The  increase  in the  allowance  reserve  for  doubtful  accounts is due to the
reduced collection  probabilities for customers directly effected by the drought
and economic conditions.

Other  expenses  decreased by $34,000 for the three months ended August 31, 2002
as compared to the three  months  ended  August 31,  2001  primarily  due to the
increase in interest  income  generated due to past due  receivables of $30,000,
the decrease in interest  expense of $31,000 offset  substantially by a decrease
in  miscellaneous  income of  $27,000.  The  decrease  in  interest  expense was
primarily due to the reduction of the prime rate of interest.

Net income  decreased  by $286,000 for the three months ended August 31, 2002 as
compared  to the  three  months  ended  August  31,  2001  primarily  due to the
additional  gross  profit of $447,000  decreased  by the  increased  in selling,
general and  administrative  expenses of $627,000 and the additional  income tax
expense of $140,000.


Nine Months Ended August 31, 2002 Compared to Nine Months Ended August 31, 2001.

Net sales  increased  by $723,000  for the nine months  ended August 31, 2002 as
compared to August 31, 2001 primarily due to the Company's continued increase of
the aggregate irrigation market in the Rocky Mountain Region.

Gross  profit was 32.5% during the nine months ended August 31, 2002 as compared
to 29.2%  during the nine  months  ended  August 31,  2001 an  increase  of 3.3%
primarily due to the combination of better pricing from vendors,  better pricing
to customers and more  selective  pricing on slower moving items of inventory to
customers.

Selling,  general and  administrative  expenses increased by $433,000 during the
nine months ended August 31, 2002 as compared to August 31, 2001  primarily  due
to the  increase of payroll of  $424,000,  the  increase in expenses for the new
Lakewood branch (opened March 2002) of $165,000 primarily offset by the decrease
in amortization  expense of $105,000.  The increase in payroll was primarily due
to an increase in the accrual of management bonuses of $326,000,  as a result of
the higher  earnings,  and an  increase  in the  accrual  for profit  sharing of
$58,000  for the nine  months  ended  August 31,  2002 as compared to August 31,
2001. The decrease in  depreciation  and  amortization of $105,000 was primarily
due to the  cessation  of the  amortizing  of  goodwill,  which  took  effect on
December 1, 2001.

Other  expenses  decreased  by $126,000  during the nine months ended August 31,
2002 as compared to August 31, 2001  primarily  due to the reduction of interest
expense. The decrease was attributable to the average interest rate of 6.24% for
the nine months ended August 31, 2002 as compared to the average  interest  rate
of 8.76%  for the nine  months  ended  August  31,  2001 and the  lower  average
line-of-credit balance of $2,418,000 for the first nine months of fiscal 2002 as
compared to $3,310,000 for the first nine months of fiscal 2001.

Net income  increased  $488,000  for the nine  months  ended  August 31, 2002 as
compared to the nine months ended August 31, 2001  primarily due to the increase
in gross  profit of  $1,059,000  and a decrease in interest  expense of $135,000
partially offset by an increase in selling,  general and administrative expenses
of $433,000 and an increase in income tax of $264,000.


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
$2,864,000 would increase the Company's yearly interest expense by approximately
$15,000,  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.


<PAGE>




                                     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.       Certification Pursuant to Section 1350 of Chapter 63

                    Exhibit A - Certification Pursuant to Section 906

Item    6.        Exhibits and Reports on Form 8-K

                  NONE



<PAGE>



Item 5.

              Certification Pursuant to Section 1350 of Chapter 63
                      Of Title 18 of the United States Code



I,      Alan C. Bergold         the [CEO/CFO] of    HIA, Inc.         , certify
   ----------------------------                  -----------------
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
                                                     Chief Financial Officer &
                                                     President


<PAGE>



                                    Exhibit A

                                  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  quarterly  report does not contain any untrue
     statement of 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 quarterly 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
     quarterly report;

4.   I am responsible for establishing and maintaining  disclosure  controls and
     procedures  (as  defined in Exchange  Act Rules  13a-14 and 15d-14) for the
     registrant and have:

     a)   designed  such  disclosure  controls  and  procedures  to ensure  that
          material  information  relating  to  the  registrant,   including  its
          consolidated subsidiaries,  is made known to me by others within those
          entities,  particularly  during  the  period in which  this  quarterly
          report is being prepared;

     b)   evaluated the  effectiveness of the registrant's  disclosure  controls
          and procedures as of a date within 90 days prior to the filing date of
          this quarterly report (the "Evaluation Date"); and

     c)   presented  in  this  quarterly   report  my   conclusions   about  the
          effectiveness  of the disclosure  controls and procedures  based on my
          evaluation as of the Evaluation Date;

5.   I have disclosed,  based on my most recent evaluation,  to the registrant's
     auditors and the audit  committee of  registrant's  board of directors  (or
     persons performing the equivalent functions):

     a)   all  significant  deficiencies  in the design or operation of internal
          controls  which could  adversely  affect the  registrant's  ability to
          record,  process,   summarize  and  report  financial  data  and  have
          identified for the  registrant's  auditors any material  weaknesses in
          internal controls; and

     b)   any fraud, whether or not material,  that involves management or other
          employees who have a  significant  role in the  registrant's  internal
          controls;

6.   I have  indicated  in this  quarterly  report  whether  or not  there  were
     significant  changes in internal  controls or in other  factors  that could
     significantly  affect internal  controls  subsequent to the date of my most
     recent  evaluation,   including  any  corrective  actions  with  regard  to
     significant deficiencies and material weaknesses.


         Date: October 15, 2002            /s/ Alan C. Bergold
                                            Chief Financial Officer & President



<PAGE>

                                   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 15, 2002                              /s/ Alan C. Bergold
                                                       Alan C. Bergold
                                                       Chief Financial Officer &
                                                       President