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, 2001

                          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:  10,191,125  shares of the
Registrant's $.01 par value common stock were outstanding at August 31, 2001.


<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 . . . . . . . . . .  . . . . . . . .10

    Item 3.  Qualitative and Quantitative Disclosure about Market Risk . . 12


Part II.  Other Information

    Item 1.  Legal Proceedings . . . . . . . . . . . .. . . . . . . . . .  13

    Item 2.  Changes in Securities and Use of Proceeds. . . . . . . . .  . 13

    Item 3.  Defaults upon Senior Securities . . . . . . . . . . . . . . . 13

    Item 4.  Submission of Matters to a Vote of Security Holders . . . . . 13

    Item 5.  Other Information . . . . . . . . . . . . . . . . . . . . . . 13

    Item 6.  Exhibits and Reports on Form 8-K . . . . . . . . . . . . . .. 13

SIGNATURES . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . .14

<PAGE>
                                     Part 1.

Item 1.  Consolidated Financial Statements

   Consolidated Balance Sheets as of August 31, 2001
   and November 30, 2000. . . . . . . . . . . . . . . . . . . . . . . . .  4

   Consolidated Statements of Operations for the three and nine months
   ended August 31, 2001 and 2000 . . . . . . . . . . . . . . . . . .  . . 6

   Consolidated Statements of Cash Flows for the nine months
   ended August 31, 2001 and 2000 . . . . . . . . . . . . . . . . . . . . .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, 2000 is based upon an audited balance sheet. All
other information is unaudited.)
<TABLE>
                                                                              August 31,              November 30,
                                                                                2001                     2000
                                                                                ----                     ----
ASSETS
<S>                                                                     <C>                       <C>
Current Assets:
  Accounts receivable, net of allowance for
    doubtful accounts of $111,213 and $111,000                               $5,799,364                  $3,466,162
  Inventories                                                                 5,065,275                   4,264,444
  Other current assets                                                          209,317                     223,612
                                                                           ------------               -------------
Total current assets                                                         11,073,956                   7,954,218
                                                                           ------------               -------------

Property and equipment, at cost:
  Leasehold improvements                                                        288,743                     285,593
  Equipment                                                                   1,346,871                   1,307,959
                                                                            -----------                ------------
                                                                              1,635,614                   1,593,552
Less accumulated depreciation
     and amortization                                                         1,161,715                   1,008,955
                                                                            -----------                ------------

Net property and equipment                                                      473,899                     584,597

Other assets                                                                    216,880                     211,020
Goodwill, net of amortization                                                 1,188,913                   1,303,969
  of $345,168 and $230,112
Non-compete agreement, net of amortization
  of $33,750 and $22,500                                                        116,250                     127,500
                                                                            -----------               -------------

TOTAL ASSETS                                                                $13,069,898                 $10,181,304
                                                                            ===========               =============

</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, 2000 is based upon an audited balance sheet. All
other information is unaudited).
<TABLE>
                                                                            August 31,                    November 30,
LIABILITIES                                                                    2001                           2000
                                                                               ----                           ----
<S>                                                                     <C>                             <C>
Current Liabilities:
  Note payable to bank                                                     $3,210,000                      $2,381,500
  Current maturities of long-term obligations                                 464,240                         464,240
  Accounts payable                                                          2,738,481                         795,583
  Checks written in excess of deposits                                        166,194                         124,055
  Accrued expenses and other current liabilities                              637,837                         431,719
                                                                         ------------                   -------------

Total current liabilities                                                   7,216,752                       4,197,097
                                                                         ------------                   -------------

Long-term Obligations:
  Notes payable, less current maturities                                    1,247,166                      1,464,198
  Capital lease obligations, less current maturities                          178,737                        307,804
                                                                         ------------                   ------------
Total long-term obligations                                                 1,425,903                      1,772,002
                                                                         ------------                   ------------

TOTAL LIABILITIES                                                           8,642,655                      5,969,099
                                                                         ------------                  -------------

COMMITMENTS

STOCKHOLDERS' EQUITY
Common stock of $.01 par value;
  authorized 20,000,000 shares: issued
  13,108,196 and 13,107,896; outstanding 10,191,125
  and 10,360,231                                                              131,082                        131,079
Additional paid-in capital                                                  3,109,268                      3,109,271
Retained earnings                                                           1,779,657                      1,465,591
                                                                          -----------                     ----------
                                                                            5,020,007                      4,705,941
Less treasury stock: 2,917,071 and
  2,747,665 shares at cost                                                   (592,764)                      (493,736)
                                                                          -----------                     ----------
Total stockholders' equity                                                  4,427,243                      4,212,205
                                                                          -----------                     ----------

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY                                                      $13,069,898                    $10,181,304
                                                                         ============                    ===========

</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, 2001    Aug 31, 2000       Aug 31, 2001    Aug 31, 2000
<S>                                  <C>              <C>                 <C>              <C>

Net sales                              $24,786,363      $25,242,939         $11,728,757      $10,692,512
Cost of sales                           17,555,394       17,916,035           8,364,016        7,560,228
                                     -------------     ------------        ------------     ------------
Gross profit                             7,230,969        7,326,904           3,364,741        3,132,284

Selling, general
 & administrative
 expenses                                6,496,365        6,305,800           2,226,230        2,416,742
                                      ------------       ----------        ------------      -----------


Operating income                           734,604        1,021,104           1,138,511          715,542

Other income (expense):
  Interest income                           68,929           72,560               3,892            7,884
  Interest expense                        (319,373)        (337,649)            (99,214)        (137,893)
  Misc. income                              35,952           27,436              39,151                -
                                     ------------       -----------        ------------      -----------
Total other expense                      (214,492)         (237,653)            (56,171)        (130,009)

Income before income
   tax expense                            520,112           783,451           1,082,340          585,533
Income tax expense                        206,046           280,000             206,046          194,000
                                     ------------       -----------        ------------      -----------

NET INCOME                               $314,066          $503,451            $876,294         $391,533
                                     ============       ===========        ============      ===========

Net income per share
  Basic                                   $   .03           $   .05             $   .09          $   .04
  Diluted                                 $   .03           $   .05             $   .09          $   .04

Weighted average common shares
  outstanding:
      Basic                            10,189,974        10,292,594          10,192,581       10,360,231
      Dilutive                         10,267,141        10,307,104          10,229,054       10,360,231
</TABLE>
The accompanying notes are an integral part of the consolidated financial
statements.

<PAGE>


                                                       HIA, INC. AND SUBSIDIARY
                                          CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>

                                                                     For the Nine Months
Ended
Increase (Decrease) In Cash                                 August 31, 2001      August 31, 2000
                                                           ----------------      ---------------
<S>                                                  <C>                     <C>
OPERATING ACTIVITIES:
Net Income                                                     $314,066              $503,451
Adjustments to reconcile net income
   to net cash used  in operating activities:
      Depreciation and amortization                             279,066               372,076
      Changes in current assets and
         current liabilities:
       Accounts receivable                                   (2,333,202)           (1,386,408)
       Inventories                                             (800,831)           (2,881,248)
       Other current assets                                      14,295                    --
       Accounts payable                                       1,942,898             1,115,918
       Accrued expenses and other current liabilities           206,118               (54,197)
                                                         --------------        --------------
NET CASH USED IN
  OPERATING ACTIVITIES                                         (377,590)           (2,330,408)
                                                         --------------        --------------

INVESTING ACTIVITIES:
  Purchases of property and equipment                           (42,062)             (101,777)
  (Increase) in other assets                                     (5,860)              (12,233)
                                                         ---------------       ---------------
NET CASH USED IN
  INVESTING ACTIVITIES                                          (47,922)             (114,010)
                                                         ---------------       ---------------

FINANCING ACTIVITIES:
  Proceeds from note payable to bank                          8,437,000             7,453,500
  Payments on borrowings on note payable to bank             (7,608,500)           (5,009,002)
  Repayments of long-term debt                                 (217,032)             (211,894)
  Payments on capital lease obligations                        (129,067)             (132,544)
  Increase in checks written in excess of deposits               42,139               211,731
  Purchase of treasury stock                                   (249,028)                   --
  Sale of treasury stock                                        150,000               111,510
                                                         ---------------       --------------
  NET CASH PROVIDED BY
    FINANCING ACTIVITIES                                        425,512             2,423,301
                                                         ---------------       --------------

NET DECREASE IN CASH                                                 --               (21,117)

CASH, BEGINNING OF PERIOD                                            --                21,117
                                                         ---------------       --------------

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

</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 presentation. 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, 2001 are not necessarily  indicative of the results that may be
obtained for the year ending November 30, 2001. These statements  should be read
in  conjunction  with the  consolidated  financial  statements and notes thereto
included in the Registration's  Form 10-KSB for the year ended November 30, 2000
filed with the Securities and Exchange Commission on February 16, 2001.

B.       Fulfillment Costs
         -----------------

Included in selling,  general and administrative expenses are fulfillment costs,
which consist of the cost of operating and staffing each branch  location.  Such
costs  include  those  attributable  to receiving,  inspecting  and  warehousing
inventories.   Fulfillment  costs  amounted  to  approximately   $1,803,740  and
$1,688,581 for the nine months ended August 31, 2001 and August 31, 2000.

C.       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  during the period  (10,189,974  and  10,292,594 for the nine months
ended  August 31,  2001 and 2000 and  10,192,581  and  10,360,231  for the three
months ended August 31, 2001 and 2000).  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.

During the nine and three months ended August 31, 2001, 77,167 and 36,473 shares
of outstanding  stock options were included for purposes of calculating  diluted
weighted  average  shares  outstanding  and 1,132,833  and  1,173,527  shares of
outstanding  stock  options were  excluded for purposes of  calculating  diluted
weighted  average  shares  outstanding.  During the nine months ended August 31,
2000,  19,756 shares of outstanding  stock options were included for purposes of
calculating  diluted weighted  average shares  outstanding and 580,244 shares of
outstanding  stock  options were  excluded for purposes of  calculating  diluted
weighted average shares  outstanding.  600,000  outstanding stock options during
the three  months  ended  August 31, 2000 were not  considered  for  purposes of
calculating  diluted weighted average shares  outstanding as the strike price of
the options  exceeded  the average  market price of the  Company's  common stock
during the respective periods.

D.       Comprehensive Income
         --------------------

Comprehensive  income  is  comprised  of  net  income  and  all  changes  to the
consolidated  statements  of  stockholders'  equity,  except  for  those  due to
investments by  stockholders,  changes in paid in capital and  distributions  to
stockholders.  The Company had no components of comprehensive  income except for
net income for the three and nine months ended August 31, 2001 and 2000.

E.       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.
During July 2001, the Company  acquired from  non-affiliate  stockholders  2,950
shares of its common stock at a price of $.25 per share.

Shareholders' Agreement

On May 23,  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 that the surviving  Shareholders  shall purchase in accordance with
the Shareholders'  Agreement, the Company shall have the option to purchase, but
not the obligation,  from the deceased  Shareholder's  estate that 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  share of common stock.  The Company shall pay the
Deceased  Shareholder's  estate in a maximum of 120  monthly  installments  with
interest at 6% per year.

F.       Recent Accounting Pronouncements
         --------------------------------

Effective   December  1,  2000,  the  Company  adopted  Statement  of  Financial
Accounting  Standards ("SFAS") No. 133,  "Accounting for Derivative  Instruments
and Hedging Activities",  as amended by SFAS No. 137, "Accounting for Derivative
Instruments  and Hedging  Activities - - Deferral of the Effective  Date of FASB
No. 133", and SFAS No. 138,  "Accounting for Certain Derivative  Instruments and
Certain  Hedging  Activities",   which  establishes   accounting  and  reporting
standards for derivative  instruments,  including certain derivative instruments
embedded in other contracts and for hedging activities. All derivatives, whether
designated in hedging  relationships  or not, are required to be recorded on the
balance  sheet at fair value.  If the  derivative  is designated as a fair value
hedge,  the changes in the fair value of the  derivative  and of the hedged item
attributable to the hedged risk are recognized in earnings. If the derivative is
designated as a cash flow hedge,  the effective  portions of changes in the fair
value of the derivative are recorded in other  comprehensive  income ("OCI") and
are recognized in the income  statement  when the hedged item affects  earnings.
Ineffective  portions  of  changes  in the fair  value of cash flow  hedges  are
recognized in earnings.

The  adoption  of SFAS  No.  133 had no  impact  on the  Company's  consolidated
financial statements.

In March 2000,  the FASB  issued  Emerging  Issues  Task Force  Issue No.  00-2,
"Accounting for Web Site  Development  Costs" ("EITF 00-2"),  which is effective
for all such costs incurred for fiscal  quarters  beginning after June 30, 2000.
This Issue establishes  accounting and reporting standards for costs incurred to
develop a web site based on the nature of each cost.  The  adoption of EITF 00-2
had no impact on the Company's  financial  condition or results of operations as
the Company has no web site development costs.

In March 2000,  the FASB  issued FASB  Interpretation  No. 44,  "Accounting  for
Certain  Transactions  Involving  Stock  Compensation"  ("FIN  44"),  which  was
effective July 1, 2000, except that certain  conclusions in this  Interpretation
which cover specific events that occur after either December 15, 1998 or January
12,  2000  are  recognized  on a  prospective  basis  from  July 1,  2000.  This
Interpretation  clarifies the  application  of APB Opinion 25 for certain issues
related to stock issued to employees.  The Company  believes its existing  stock
based  compensation  policies and procedures  are in compliance  with FIN 44 and
therefore,  the  adoption  of FIN 44 had no  material  impact  on the  Company's
financial condition, results of operations or cash flows.

In December  1999, the  Securities  and Exchange  Commission  (the "SEC") issued
Staff Accounting Bulletin No. 101 ("SAB 101"), "Revenue Recognition in Financial
Statements" which provides  additional  guidance in applying  generally accepted
accounting principles to revenue recognition in financial statements. SAB 101 is
effective  as of the fourth  quarter of fiscal year ending  November  30,  2001.
Management  believes the adoption of this bulletin will have no material  impact
on the Company's consolidated financial statements.

In June 2001, the FASB finalized SFAS No. 141, Business  Combinations,  and SFAS
No. 142, Goodwill and Other Intangible Assets.  SFAS No. 141 requires the use of
the   purchase   method   of   accounting   and   prohibits   the   use  of  the
pooling-of-interests  method of accounting for business  combinations  initiated
after  June 30,  2001.  SFAS No.  141 also  requires  that  companies  recognize
acquired intangible assets apart from goodwill if the acquired intangible assets
meet  certain  criteria  and,  upon  adoption  of SFAS No. 142,  that  companies
reclassify the carrying  amounts of intangible  assets and goodwill based on the
criteria in SFAS No.  141.  SFAS No. 142  requires,  among  other  things,  that
companies no longer amortize goodwill,  but instead test goodwill for impairment
at least annually.  In addition,  SFAS No. 142 requires that companies  identify
reporting units for the purposes of assessing  potential  future  impairments of
goodwill,  reassess the useful  lives of other  existing  recognized  intangible
assets,  and cease  amortization of intangible  assets with an indefinite useful
life.  An intangible  asset with an indefinite  useful life should be tested for
impairment  in accordance  with the guidance in SFAS No. 142. This  Statement is
effective December 1, 2002 for the Company. The Company is evaluating whether or
not the  adoption  of  these  Statements  will  have a  material  impact  on its
consolidated financial statements.

In August 2001, the FASB issued SFAS No. 143,  Accounting  for Asset  Retirement
Obligations.  SFAS No. 143 require  the fair value of a  liability  for an asset
retirement  obligation to be recognized in the period in which it is incurred if
a reasonable estimate of fair value can be made. The associated asset retirement
costs are  capitalized as part of the carrying  amount of the long-lived  asset.
SFAS No. 143 is effective for fiscal years  beginning  after June 15, 2002.  The
Company  believes the adoption of this Statement will have no material impact on
its financial statements.

In October 2001, the FASB issued SFAS No. 144,  Accounting for the Impairment or
Disposal of Long-Lived  Assets.  SFASB 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.  SFASB
144 is effective  for  financial  statements  issued for fiscal years  beginning
after December 15, 2001 and, generally, is to be applied prospectively.

G.       Supplemental Disclosure of Cash Flow Information
         -------------------------------------------------

Cash  payments for interest were $319,373 and $337,649 for the nine months ended
August 31, 2001 and 2000.  Cash  payments  for income  taxes were  $229,000  and
$322,923 for the nine months ended August 31, 2001 and 2000.


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  decreased by $1,952,818 for the nine
months ended August 31, 2001 as compared to the same period last year  primarily
due to the  decrease  in  inventories  of  $2,080,417,  an  increase in accounts
payable of  $826,980  and an  increase  in accrued  expenses  and other  current
liabilities of $260,315 partially offset by the increase in accounts  receivable
of  $946,794  and net income of  $314,066.  The  decrease  in  inventories  were
primarily  due to  increased  levels of inventory  control made  possible by the
successful  implementation of the new computer system installed in February 2000
and reduced  shipments  from vendors on "early order"  programs  (manufacturer's
early shipment dating programs).  The increase in accounts payable was primarily
due to the extension in payment terms of early order shipments from vendors. The
increase in accrued expenses and other current  liabilities was primarily due to
the  increase  in rebates  payable to  customers  of $94,593  and an increase in
profit sharing  contributions of $32,674.  The increase in accounts  receivables
were  primarily due to the increase of  receivables  classified in current to 60
days  past due  categories.  The  increase  is a result  of a  general  economic
slowdown  which creates a tendency for  customers to delay  payments to vendors.
However,  there  was a  slight  improvement  in the  90+-day  category  of  aged
receivables when comparing  August 31, 2001 to August 31, 2000.  Also,  accounts
receivable  increased  slightly compared to the comparable prior period as sales
for the three months ended August 31, 2001 increased by approximately $1,036,000
(see further discussion at Results of Operations).

The  decrease in the net income of  $189,385  was  primarily  as a result of the
increase of selling,  general and administrative (SG&A) expense of $190,565. The
increase in SG&A expense was primarily due to the additional  expenses  incurred
by the  southeast  Denver  branch of $126,900  which opened in July 2000 for the
nine months ended August 31, 2001 as compared to August 31, 2000.

The net cash used in investing  activities  decreased by $66,088  primarily as a
result of the  decrease in  purchases  of fixed assets for the nine months ended
August 31, 2001 as compared to the similar nine months in the prior year.

The net decrease in cash provided by financing  activities of $1,997,789 was due
primarily  as a result  of the  decrease  in net  borrowings  from the bank note
payable of  $1,615,998,  the  purchase of treasury  stock during the nine months
ended  August 31, 2001 of $249,028 and the  decrease in checks  written  against
future  deposits of $169,592.  The decrease in net  borrowings  on the bank note
payable was  primarily  attributable  to the  increase in accounts  payables and
decrease in inventories, offset partially by the increase in accounts receivable
as compared to the nine months ended  August 31, 2000.  The purchase of treasury
stock 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 the first nine months of fiscal  2001,  the Company
acquired from non-affiliate  stockholders 36,450 shares of its common stock at a
price of $.25 per share.

The Company's  business is concentrated  from March to October.  Therefore,  the
Company's   accounts   receivable,   inventories   and   accounts   payable  are
significantly  higher as of August 31, 2001 compared to November 30, 2000 due to
the seasonal nature of the Company's business.

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

                                      August 31, 2001          November 30, 2000
                                      ---------------          -----------------
         Working Capital                $3,857,204                  $3,757,121
         Current Ratio                   1.53 to 1                   1.90 to 1

The Company's working capital increased by $100,083 during the nine months ended
August 31, 2001 as compared to November 30, 2000.  Management  believes that the
present  working  capital is adequate to conduct  its  present  operations.  The
Company does not have any additional purchase commitments nor does it anticipate
any additional  material capital  expenditures for fiscal 2001. As of August 31,
2001,  the  Company  and its  subsidiary  have an  available  line-of-credit  of
$5,000,000,  an increase of $500,000 on the  line-of-credit  as of November  30,
2000. As of August 31, 2001,  $1,790,000 is unused under the line of credit. The
line of credit expires on December 31, 2002. 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.  As of  August  31,  2001,  the  Company  was in
compliance with its debt covenants.

The decrease in the current  ratio as of August 31, 2001 as compared to November
30, 2000 is attributable  to the increase in accounts  payable of $1,942,898 and
bank  borrowings  of  $828,500  partially  offset by the  increase  in  accounts
receivable of $2,333,202 and the increase in inventories of $800,831.

Income Taxes

As of August 31, 2001, the Company has recorded a current net deferred tax asset
totaling  $137,349 and has recorded a noncurrent net deferred tax asset totaling
$67,728.  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, 2001 Compared to Three Months Ended August 31,
2000.

Net sales for the three  months  ended  August 31,  2001 were up  $1,036,245  as
compared  to  August  31,  2000  primarily  due  to  the  general   decrease  in
construction  activity the first two quarters of 2001 which was partially offset
by the completion of jobs in the third quarter  delayed due to the wet spring of
2001.

Cost of Sales was up  $803,788  for the three  months  ended  August 31, 2001 as
compared to the three months ended August 31, 2000.  This  increase was relative
to the increase in sales for the same period in the prior year.

Gross  profit  was 28.69%  during  the three  months  ended  August 31,  2001 as
compared to 29.29% during the three months ended August 31, 2000.

Selling,  general and  administrative  expenses were down $190,512 for the three
months  ended  August 31, 2001 as compared to the three  months ended August 31,
2000 primarily due to cost containment  measures  initiated in the third quarter
effecting various areas of expenses.

Other  expenses  decreased by $73,838 for the three months ended August 31, 2001
as compared to the three  months  ended  August 31,  2000  primarily  due to the
decrease in interest expense of $38,679 and the increase of miscellaneous income
of $39,151.  The decrease in interest  expense was primarily due to the decrease
in the  prime  lending  rate  paid on the  line-of-credit  to the  bank  and the
decreased  interest cost on amortized  long-term notes payable and capital lease
obligations.

Net income  increased  $484,761  for the three  months  ended August 31, 2001 as
compared to the three months ended August 31, 2000 primarily due to the increase
in gross profit of $232,457 as a result of the overall increase in sales for the
same  periods,  a decrease in selling,  general and  administrative  expenses of
$190,512 and a decrease in other expense of $73,838.

Nine Months Ended August 31, 2001 Compared to Nine Months Ended August 31, 2000.

Net sales were down  $456,576  for the nine  months  ended  August  31,  2001 as
compared to August 31, 2000.  This was due to the inclement  weather  during the
spring of 2001 as compared to the  relatively  drier and warmer  spring  weather
experienced  over the past few  years.  Contractors  had to delay jobs until the
ground  defrosted  and there was a period of  relatively  clear and dry  weather
patterns to begin their larger jobs.

Cost of Sales was down  $360,641  for the nine months  ended  August 31, 2001 as
compared to August 31, 2000.  This was relative to the decrease in sales for the
same period.

Gross profit was 29.17% during the nine months ended August 31, 2001 as compared
to 29.03% during the nine months ended August 31, 2000.

Selling, general and administrative expenses increased by $190,565 during the
nine months ended August 31, 2001 as compared to August 31, 2000 primarily due
to the addition of the southeast Denver (Englewood, CO) branch that had
additional operating expenses for the first nine months of 2001 of $126,900
opened July 2000.

Other  expenses  decreased  by $23,161  primarily as a result of the decrease in
interest  expense of $18,276.  The  decrease in interest  expense was due to the
decrease in the average weighted interest rate of 5.79% in 2001 (6.76% for 2000)
applied to the average loan balance of $3,309,683 in 2001  ($2,691,696 for 2000)
coupled  with the  decrease  in interest  paid on  long-term  notes  payable and
capital lease obligations of $9,931 for the nine months ended August 31, 2001 as
compared to August 31, 2000.

Net income  decreased  $189,385  for the nine  months  ended  August 31, 2001 as
compared to the nine months ended August 31, 2000  primarily due to the decrease
in gross profit of $95,935 as a result of the overall  decrease in sales for the
same periods and an increase in selling,  general and administrative expenses of
$190,565 and a decrease in income tax expense of $73,954.

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
$3,210,000 would increase the Company's yearly interest expense by approximately
$18,618,  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.       Other Information

                  NONE

Item    6.        Exhibits and Reports on Form 8-K

                  NONE




<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, 2001                           /s/ Alan C. Bergold
                                                    Alan C. Bergold
                                                    Chief Financial Officer &
                                                    President