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 February 28, 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:  10,281,526  shares of the
Registrant's $.01 par value common stock were outstanding at February 28, 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 Operation  . . . . . . .8


Part II.  Other Information

         Item 1.  Legal Proceedings . . . . . . . . . . . . . . . . . . . .14

         Item 2.  Changes in Securities and Use of Proceeds. . . . . . . . 14

         Item 3.  Defaults upon Senior Securities . . . . . . . . . . . .  14

         Item 4.  Submission of Matters to a Vote of Security Holders  . . 14

         Item 5.  Other Information . . . . . . . . . . . . .  . . . . . . 14

         Item 6.  Exhibits and Reports on Form 8-K . . . . . . . . . .  . .14

SIGNATURES . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . .15



<PAGE>



                                     Part 1.

Item 1.  Consolidated Financial Statements

         Consolidated Balance Sheets as of February 28, 2002
         and November 30, 2001 . . . . . . . . . . . . . . . . . . . . . .  4

         Consolidated Statements of Operations for the three months
         ended February 28, 2002 and 2001. . . . . . . .. . . . . . . . . . 6

         Consolidated Statements of Cash Flows for the three months
         ended February 28, 2002 and 2001 . . . . . . . . . . . . . . . . . 7

         Notes to Consolidated Financial Statements . . .. . . . . . . . . .8

<PAGE>

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>
                                                                                      February 28,             November 30,
                                                                                         2002                      2001
                                                                                         ----                      ----
ASSESTS
<S>                                                                             <C>                     <C>
Current Assets:
Cash                                                                            $     2,000               $         1,000
Accounts receivable, net of allowance for
  doubtful accounts of $146,000 and $146,000                                      2,843,000                     3,452,000
Inventories                                                                       5,609,000                     3,784,000
Other current assets                                                                197,000                       204,000
                                                                                 ----------                 -------------
Total current assets                                                              8,651,000                     7,441,000
                                                                                 ----------                 -------------

Property and equipment, at cost:
  Leasehold Improvements                                                            293,000                      289,000
  Equipment                                                                       1,347,000                    1,347,000
                                                                                  ---------                    ---------
                                                                                  1,640,000                    1,636,000

Less accumulated depreciation                                                     1,267,000                    1,216,000
                                                                                  ---------                    ---------

Net property and equipment                                                          373,000                      420,000

Other assets                                                                        491,000                      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 $41,000 and $37,000                                                           109,000                      113,000
                                                                                 ---------                -------------

TOTAL ASSETS                                                                   $10,775,000                   $9,320,000
                                                                               ===========                   ==========

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







                            HIA, INC. AND SUBSIDIARY

                     CONSOLIDATED BALANCE SHEETS (Continued)

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

<TABLE>
                                                                                February 28,               November 30,
LIABILITIES                                                                          2002                         2001
                                                                                     ----                         ----
<S>                                                                             <C>                     <C>
Current Liabilities:
  Note payable to bank                                                            $1,960,000                  $1,815,000
  Current maturities of long-term obligations                                        487,000                     487,000
  Accounts payable                                                                 2,777,000                     477,000
  Checks written in excess of deposits                                               248,000                     207,000
  Accrued expenses and other current liabilities                                     193,000                     593,000
                                                                                ------------               -------------

Total current liabilities                                                          5,665,000                   3,579,000
                                                                                 -----------               -------------

Long-term Obligations:
  Notes payable, less current maturities                                           1,093,000                   1,165,000
  Capital lease obligations, less current maturities                                  72,000                     117,000
                                                                               -------------                ------------
Total long-term obligations                                                        1,165,000                   1,282,000
                                                                                  ----------                 -----------

TOTAL LIABILITIES                                                                  6,830,000                   4,861,000
                                                                                 -----------               -------------

COMMITMENTS

STOCKHOLDERS' EQUITY
Common stock of $.01 par value;
  authorized 20,000,000 shares: issued
  13,107,896; outstanding 10,281,526
  and 10,126,525                                                                     131,000                     131,000
Additional paid-in capital                                                         3,110,000                   3,109,000
Retained earnings                                                                  1,269,000                   1,831,000
                                                                                 -----------                  ----------
                                                                                   4,510,000                   5,071,000
Less treasury stock: 2,826,670 and
  2,981,671 shares at cost                                                          (565,000)                   (612,000)
                                                                                ------------              --------------
Total stockholders' equity                                                         3,945,000                   4,459,000
                                                                                   ---------               -------------

TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY                                                             $10,775,000                  $9,320,000
                                                                                 ===========                  ==========

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




                            HIA, INC. AND SUBSIDIARY

                      CONSOLIDATED STATEMENTS OF OPERATIONS
<TABLE>

                                                      Three Months Ended
                                            Feb 28, 2002           Feb 28, 2001
<S>                                      <C>                     <C>


Net sales                                   $3,718,000        $3,734,000
Cost of sales                                2,643,000         2,572,000
                                             -------------   ---------------
Gross profit                                 1,075,000         1,162,000

Selling, general
 and administrative
 expenses                                    1,893,000         2,143,000
                                             -------------  ---------------

Operating loss                                (818,000)         (981,000)

Other income (expense):
  Interest income                               17,000            41,000
  Interest expense                             (54,000)         (102,000)
  Misc. income                                   3,000             8,000
                                            --------------   ----------------
Total other expense                            (34,000)          (53,000)
                                           ---------------   ----------------

Loss before income taxes                       (852,000)      (1,034,000)
                                           ---------------- ---------------

Tax benefit                                      290,000           - 0 -

NET LOSS                                       ($562,000)    ($1,034,000)
                                            =============  ===============

Basic and diluted loss
   per share                                     ($  .06)       ($   .10)
                                          =============== ================

Weighted average common
   shares outstanding
         Basic                                10,233,637      10,180,369
         Dilutive                             10,233,637      10,180,369

</TABLE>


The accompanying notes are an integral part of the consolidated financial
statements.



                            HIA, INC. AND SUBSIDIARY
                      CONSOLIDATED STATEMENTS OF CASH FLOWS
<TABLE>
                                                                                          For the Three Months Ended
                                                                                February 28, 2002       February 28, 2001

Increase (decrease) in cash
<S>                                                                             <C>                     <C>
OPERATING ACTIVITIES:
Net loss                                                                         ($562,000)                ($1,034,000)
Adjustments to reconcile net loss
   to net cash used  in operating activities:
      Depreciation and amortization                                                 55,000                      92,000
      Deferred income taxes                                                       (290,000)
      Changes in current assets and
         current liabilities:
       Accounts receivable                                                         609,000                   1,020,000
       Inventory Reserve                                                           (48,000)                      - 0 -
       Inventories                                                              (1,777,000)                 (2,927,000)
       Other current assets                                                          7,000                      20,000
       Accounts payable                                                          2,300,000                   2,442,000
       Accrued expenses and other current liabilities                             (399,000)                   (145,000)
                                                                              ------------               --------------
NET CASH USED IN
  OPERATING ACTIVITIES                                                            (105,000)                   (532,000)
                                                                               -----------                -------------

INVESTING ACTIVITIES:
  Purchases of property and equipment                                               (4,000)                    -  0  -
  Decrease (increase) in other assets                                               (6,000)                     60,000
                                                                          -----------------             ---------------
  NET CASH USED IN
  INVESTING ACTIVITIES                                                             (10,000)                     60,000
                                                                               ------------               -------------

FINANCING ACTIVITIES:
  Proceeds from note payable to bank                                             1,635,000                   2,783,000
  Payments on borrowings on note payable to bank                                (1,490,000)                 (2,133,000)
  Repayments of long-term debt                                                     (72,000)                    (72,000)
  Payments on capital lease obligations                                            (45,000)                    (42,000)
  Increase in checks written in excess of deposits                                  41,000                      34,000
  Purchase of treasury stock                                                       -  0  -                    (248,000)
  Sale of treasury stock                                                            47,000                     150,000
                                                                               -----------                 -----------
  NET CASH PROVIDED BY
    FINANCING ACTIVITIES                                                           116,000                     472,000
                                                                               -----------               -------------

NET DECREASE IN CASH                                                                 1,000                     -  0  -

CASH, BEGINNING OF PERIOD                                                            1,000                     -  0  -
                                                                              ------------             ---------------

CASH, END OF PERIOD                                                             $    2,000                $    -  0  -
                                                                              ============              ==============

</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 three months ended
February  28, 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 Loss 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  ($10,233,637  and 10,180,369 for 2002 and 2001).
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 periods  ended  February 28, 2002 and  February  28,  2001,  total stock
options  in the  amount of  1,020,000  and  750,000  are not  considered  in the
computation  of  diluted   earnings  per  share  as  their  inclusion  would  be
anti-dilutive.


C.       Stockholders' Equity

Purchase of Treasury Stock

On 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
732,456  shares of common  stock were  tendered  for a total  purchase  price of
$183,000. A total of $57,000 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 February 28, 2002, 270,000 options remain under this stock option offer.


Shareholders Agreement

On February 14, 2001,  the Company and Carl J. Bentley,  Alan C. Bergold and Don
Champlin   (collectively,   the  "Shareholders")  entered  into  a  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 twelve  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   share  of  common   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 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.


E.       Supplemental Disclosure of Cash Flow Information

Cash  payments for interest were $54,000 and $102,000 for the three months ended
February 28, 2002 and February  28,  2001.  Cash  payments for income taxes were
$35,000 and $0 for the three  months  ended  February  28, 2002 and February 28,
2001.



<PAGE>



Item 2. Management's  Discussion and Analysis of Financial  Condition and Result
     of Operation

Liquidity and Capital Resources

The net cash used in  operating  activities  decreased by $427,000 for the three
months  ended  February 28, 2002 as compared to the same period last year due to
the decrease in net loss of $182,000,  a decrease in amortization of $37,000, an
increase  in  accounts  receivable  of  $411,000,  a decrease  in  inventory  of
$1,150,000,  an increase in accounts  payable of $142,000  and a net decrease in
accrued  expenses and other  current  liabilities  of $255,000.  The increase in
accounts  receivables  was due primarily to a  reclassification  of net accounts
payables  balances  due  from  individual  vendors  of  $171,000  together  with
generally  slower  payments  from  customers  attributable  to  slower  economic
activity  during the fourth  quarter of 2001.  The  decrease  in  inventory  was
primarily due to lower  winter-stocking  purchases from  significant  vendors in
anticipation of the continuation of the recessionary  economic downturn began in
2001. The decrease in accounts payable was primarily due to the decreased levels
of inventory purchased during the first quarter of 2002 as compared to the prior
year.  The  decrease  in accrued  expenses  and other  current  liabilities  was
primarily due to decreases in accrued payroll and bonuses of $135,000.

The net cash provided by (used in) in investing activities decreased as compared
to same  period  last  year  by  $70,000  primarily  due to the  write-off  of a
tax-related partnership interest of $46,350 at November 30, 2000.

The net cash  provided by  financing  activities  decreased  as compared to same
period  last  year by  $356,000  primarily  as a result of the  decrease  in net
borrowings  to bank of $505,000  which was  primarily  due to reduced  inventory
purchases  in 2002 offset  partially by the net  purchases in treasury  stock of
$146,000.  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 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 February 28, 2002, 270,000 options remain under this stock option offer.


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

                                     February 28, 2002         November 30, 2001
         Working Capital               $2,986,000                   $3,862,000
         Current Ratio                  1.53 to 1                    2.08 to 1

The  Company's  working  capital  decreased by $877,000  during the three months
ended  February 28, 2002 as compared to November 30, 2001  primarily as a result
of the $852,000 net loss.  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 fiscal 2002. As of February 28,
2002,  the  Company  and its  subsidiary  have an  available  line-of-credit  of
$5,000,000.  As of February  28,  2002,  $3,040,000  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 the Company.  CPS is the wholly-owned  subsidiary of the
Company. The line-of-credit agreement also limits the payment of any expenses of
the Company by CPS in excess of $50,000  during any  twelve-month  period.  This
restriction does not have a significant  impact of the Company's ability to meet
its cash needs as its cash needs are minimal.

The  decrease  in the  current  ratio as of  February  28,  2002 as  compared to
November 30, 2001 is attributable  to the increase in accounts  payable and bank
borrowings and decrease in accounts  receivable offset partially by the increase
in inventories.

Income Taxes

As of February  28,  2002,  the Company has  recorded a current net deferred tax
asset  totaling  $151,000 and has  recorded a noncurrent  net deferred tax asset
totaling $326,000. 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.



<PAGE>



Results of Operations

Three Months Ended February 28, 2002 Compared to Three Months Ended February 29,
2001.

Net sales for the three months ended February 28, 2002 were comparable to the
first quarter of the prior year.

Gross  profit was 28.90%  during the three  months  ended  February  28, 2002 as
compared to 31.11% during the three months ended February 28, 2002 a decrease of
2.21%.  This was  primarily  due to the  decrease  in  rebates  and  commissions
received from vendors of $116,000  (due to not meeting  volume  expectations  in
2001 for select  vendors for which rebates would be expected to be paid in 2002)
and a reduction in inventory  reserve  adjustments  of $84,000  primarily due to
improved inventory control procedures.

Selling,  general and  administrative  expenses decreased by $250,000 during the
three  months  ended  February  28, 2002 as compared to the three  months  ended
February  28, 2001  primarily  as a result of  decreases in payroll and contract
labor of $42,000,  sales and advertising expenses of $58,000 and amortization of
$38,000  coupled  with  general  non-material  decreases  in sales  and  general
administrative   expenses.   The  decreases   were  primarily  as  a  result  of
management's  decision  to control  and reduce  overhead  expenses  particularly
during the first half of 2002 in  anticipation  of  comparable  or reduced sales
volumes  during a recessionary  economic  period.  Amortization  of goodwill was
eliminated for the first quarter of 2002 due to the adoption of SFAS No. 142.

Other expenses decreased $19,000 during the three months ended February 28, 2002
compared  to the three  months  ended  February  28, 2001  primarily  due to the
decrease  in interest  expense as a result of lower  interest  rates  during the
first  quarter  of 2002 as  compared  to the  similar  quarter  2001 and a lower
average  line-of-credit  balance  ($1,757,000 for first quarter 2002 compared to
$2,708,000 for first quarter 2001).

Net loss in the first  quarter of 2002 was $182,000  less than the first quarter
of 2001 primarily due to the decrease in selling,  general and administrative of
$250,000 offset partially by the decrease in gross profit of $87,000.


















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