FORM 10-Q 
 
                 SECURITIES AND EXCHANGE COMMISSION 
                        WASHINGTON, DC  20549 
 
              Quarterly Report Under Section 13 or 15(d) 
                of the Securities Exchange Act of 1934 
 
                   For Quarter Ended May 31, 1997 
 
                   Commission File Number 0-9599 
 
                        HIA, INC. 
 
          (Exact name of registrant specified in its charter) 
 
              New York                        16-1028783 
        State or other jurisdiction of I.R.S.    Employer   
      ncorporation 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: 10,303,383 fully 
diluted shares of the Registrant's $.01 par value common stock were outstanding
at May 31, 1997 
 
 
 
 
                                  HIA, INC. 
                                 INDEX 
 
Part 1.  Financial Information 
 
     Item 1         Financial Statements. . . . . . . . . . . 3 
 
     Item 2.        Management's Discussion and Analysis of Financial 
                      Condition and Results of Operations. .  . . .. .9 
 
 
Part 2.  Other Information 
 
    Item 6. Exhibits . . . . .  . . . . . . . . . . . . . . .  10 
 
 
 Part  1. 
 
Item 1.  Financial Statements 
 
     Consolidated Balance Sheets as of November 30, 1996  
      and May 31, 1997. . . . . . .                          . . . . . .4 
 
     Consolidated Statement of Earnings for the six months  
       May 31, 1997 and May 31, 1996 and the three months  
       ended May 31, 1997 and May 31, 1996. . . . . . . . . . .         5 
 
     Consolidated Statement of Cash Flows for the six months  
      ended May 31, 1997 and May 31, 1996. . . . . . . . . . . . . ..   6 
 
 
                 HIA, INC. AND SUBSIDIARIES 
<TABLE> 
                 CONOLIDATED BALANCE SHEET 
 
 
(Information as of November 30, 1995 is based upon an audited balance sheet.  All  
other information is unaudited.) 
<CAPTION> 
 
ASSETS                                           May 31,     November 30,   
                                                  1997        1996 
<S>                                             <C>         <C> 
Current Assets: 
  Cash                                           $  229,362   $ 141,584 
  Receivables                                     2,546,005   1,528,131 
  Inventories                                     4,244,956   2,078,802 
  Other current assets                              117,597     116,418 
                                                 ----------   ---------- 
     Total current assets                        $7,137,920  $3,864,935 
     
Property, Plant & Equipment,  
 at cost: 
   Land and Improvements                         $   45,295  $   45,295 
   Buildings                                        248,038     237,361 
   Equipment                                        415,573     366,591 
                                                 ----------   ---------- 
                                                 $  708,906  $  649,247 
Less accumulated depreciation   
     and amortization                            $  500,125  $ (485,105) 
                                                 ----------  ----------- 
     Net property, plant and equipment              208,781     164,142 
Other Assets/Investments                             83,890      75,544 
TOTAL ASSETS                                     $7,430,591  $4,104,621 
                                                 ==========   ========== 
</TABLE> 
[CAPTION] 
The accompanying notes are an integral part of the Consolidated Financial 
 Statements. 
 
                     HIA, INC. AND SUBSIDIARIES 
 
                 CONSOLIDATED BALANCE SHEET (Continued) 
 
(Information as of November 30, 1996 is based upon an audited balance sheet.  
All other information is unaudited). 
<TABLE> 
                                                May 31,     November 30, 
LIABILITIES                                      1997         1995 
<S>                                            <C>         <C> 
Current Liabilities: 
  Notes Payable to Banks                        $2,078,613  $  878,613 
Accounts payable                                 2,743,898     603,820 
  Accrued expenses & other  liabilities            238,063     354,837 
                                                ----------   --------- 
Total current liabilities                       $5,060,574  $1,837,270 
 
STOCKHOLDERS' EQUITY 
  
Common Stock of $.01 par value 
  Authorized 20,000,000 shares; 
  issued and outstanding 10,303,383                131,079     131,079 
Additional paid-in capital                       3,109,271  3,109,271 
Accumulated Deficit                              (  133,377)(  236,043) 
                                                 ---------   ---------- 
                                                  3,106,973  3,004,307 
 
LESS: Treasury Stock:4,004,513 Shares           (   736,956) ( 736,956) 
                                                 ---------  ----------- 
 at cost               
  TOTAL Stockholders' Equity                      2,370,017   2,267,351 
TOTAL LIABILITIES AND                            =========   ========== 
STOCKHOLDERS' EQUITY                             $7,430,591  $4,104,621 
                                          
</TABLE> 
The accompanying notes are an integral part of the Consolidated  
Financial Statements. 
<TABLE>
<CAPTION> 
 
 
                           HIA, INC. AND SUBSIDIARIES 
 
                       CONSOLIDATED STATEMENT OF EARNINGS 
 
                               Six Months Ended       Three Months Ended 
                              May 31,     May 31,     May 31,     May 31, 
                               1996*        1997        1996*        1997  
<S>                           <C>         <C>         <C>         <C> 
Net Sales                     $7,199,397  $7,021,381  $5,417,009  $5,433,774 
Cost of Sales                  4,828,026   4,767,543   3,626,795   3,639,093 
                              ----------   ---------  ----------  ---------- 
Gross Profit                   2,371,371   2,253,838   1,790,214   1,794,681 
 
Selling, general & admin.     $2,176,761  $1,849,544  $1,194,007  $1,029,633 
                              ----------  ----------  ----------  ----------- 
expenses 
 
Operating Income (Loss)          194,610     404,294     596,137     765,048 
 
Other income (Deduction): 
  Interest Income                  8,209       3,643       3,681        (35) 
Interest Expense                 (60,005)    (51,085)    (48,291)    (34,664) 
  Misc. Income (expense)           8,852       5,330     (12,489)     3,046 
                                ---------  ----------  ----------  ---------- 
   Total Other Income            (42,944)   ( 42,112)    (57,099)   (31,653) 
    (deductions) 
Income before tax                151,666     362,182      539,038    733,395 
Income Tax                        49,000     141,250       49,000    141,250 
 
NET INCOME (LOSS)             $  102,666  $  220,932    $ 490,038   $592,145 
                                ========    ========      =======    ======= 
 
Income (Loss) per Common             .01         .02          .05         .06 
   Share 
Weighted average shares  
outstanding                   10,303,383  10,443,394   10,303.383   10,443,394 
</TABLE> 
 
The accompanying notes are an integral part of the Consolidated 
Financial Statements. 
 
*The periods shown as of May 31, 1996 have been restated from the 10Q report 
filed for the second quarter of 1996 to reflect the accrual of $162,890 of 
additional SG&A expenses and $141,250 of federal and state taxes. 
 
 
                   HIA, INC. AND SUBSIDIARIE                
<TABLE> 
<CAPTION> 
                  CONSOLIDATED STATEMENT OF CASH FLOWS 
 
                                                                                      
                                                For the six months ended   
                                                May 31,         May 31, 
                                                1997            1996*  
 
OPERATING ACTIVITIES: 
<S >                                            <C>         <C> 
Net Income before extraordinary item            $102,666    $ 220,932 
Adjustments to reconcile net income 
 to net cash used by operating  
 activities: 
  Depreciation and amortization                   15,020       10,609 
Changes in current assets and 
   current liabilities 
     Accounts receivable                        (1,017,874)  (1,334,539) 
     Inventories                                (2,166,154)  (1,409,594) 
        Other current assets                        (1,179)    ( 57,636) 
     Notes payable to banks                      1,200,000      500,500 
     Accounts payable                            2,140,078    2,072,991 
     Other current liabilities                    (116,774)    (109,242) 
                                                -----------  ----------- 
NET CASH (USED IN) PROVIDED BY  
OPERATING ACTIVITIES                               155,783     (105,979 
                                                 ===========  =========== 
INVESTING ACTIVITIES 
 Disposal of property and equipment               ( 59,659)       4,132 
(Increase) decrease in other noncurrent 
 assets                                           (  8,346)      (3,180) 
 (Purchase) or sale of treasury stock                   -0-      (8,235) 
                                                 -----------   --------- 
NET CASH (USED IN) PROVIDED BY  
 INVESTING ACTIVITIES                              (68,005)      (7,283) 
                                                   ========      ======= 
 
NET INCREASE (DECREASE) IN CASH AND CASH            87,778     (113,262) 
 EQUIVALENTS 
 
 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR      141,584      115,112 
 CASH AND CASH EQUIVALENTS, END OF QUARTER         229,362        1,850 
                                                   ========      ======= 
 
The accompanying notes are an integral part of the Consolidated Financial Statements. 
(*see note from page 6) 
</TABLE> 
                        HIA, INC. AND SUBSIDIARIES 
 
               NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
 
 
A.      Basis for Presentation 
 
     The accompanying 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 six months ended May 31, 1997 are not necessarily indicative of the 
results that may  be obtained for the year ending  November 30, 1997.  These 
statements should be read in conjunction with the financial statements and 
notes thereto included in the Registration's form 10K for the year ended 
November 30, 1996 filed with the Securities and Exchange Commission on 
February 25, 1997. 
 
 
Item 2.         Management's Discussion and Analysis 
                              Financial condition and Results of Operations 
 
     
     The Registrant's working capital increased by $49,681 during the six 
months ended May 31, 1997 principally as a result of the following factors: 
 
        (1) An operating cash income of $117,681  
        (2) Reductions to other assets of $8,346 
        (3) Additions of equipment of $59,659 
 
     At May 31, 1997 the Company's subsidiary had lines of credit totaling 
$4,000,000 of which approximately $2,200,000 was available for future 
borrowing,  The lines of credit are guaranteed by the  Company. 
 
Results of Operations 
 
     Net sales for the three months ended May 31, 1997 were down $16,765 or 
1/2 of 1% less than the second quarter of 1996. 
 
     The gross profit was 33% during the three months ended May 31, 1997, 
compared to the second quarter of 1996 at 33% of net sales. 
 
     The selling, general and administrative expenses were up $164,444 for the  
quarter ended May 31, 1997 as compared to the second quarter of the previous 
year. Other deductions were up $25,446 as compared to the second quarter of 
1996,  principally as a result of the increase in interest expense on the 
line of credit. 
 
     The income from operations for the second quarter of 1996 was $168,911 
less than second quarter of the previous year primarily attributable to the 
increase in SG&A expenses. 
 
 
Part II 
 
Item    6. Exhibits 
 
   (a)   The following exhibits are filed with this report. 
 
         NONE 
 
 
 
 
 
                                       SIGNATURES 
 
    Pursuant to the requirements of the Securities Exchange Act of 1934,
Registrant has duly caused this report to be signed on its behalf by the 
under signed hereunto duly authorized. 
 
 
                                            HIA, INC. 
 
 
 
 
 
Date------------------------------    ----------------------------     
                                      Alan C. Bergold 
                                      Chief Financial Officer & 
                                      Executive Vice-President