UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (D) OF THE
SECURITIES EXCHANGE ACT OF 1934

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2003

[ ] Transition Report Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934

For the transition period from _______ to _______

COMMISSION FILE NUMBER 0-14324

MOORE-HANDLEY, INC.

(Exact name of registrant as specified in its charter)

DELAWARE	63-0819773
(State or other jurisdiction of	(I.R.S Employer
Incorporation of organization)	Identification No.)

3140 PELHAM PARKWAY, PELHAM, ALABAMA	35124
(Address of principal executive offices)	(Zip 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 for such shorter period that the registrant was required to file such reports) and (2) has been subject to filing requirements for the past 90 days.

Yes

[X]

[ ]

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Common stock, $.10 par value	1,804,843 Shares
Class	Outstanding at June 30, 2003

Page 1

MOORE-HANDLEY, INC.
INDEX

Item No.		Page No.

PART I. FINANCIAL INFORMATION - UNAUDITED

1.	Condensed Balance Sheets (Unaudited) -
	June 30, 2003 and 2002 and December 31, 2002	3

	Statements of Operations (Unaudited) -
	Six Months Ended June 30, 2003 and 2002	4

	Statements of Cash Flow (Unaudited) -
	Six Months Ended June 30, 2003 and 2002	5

	Notes to Financial Statements	6

2.	Management's Discussion and Analysis
	of Financial Condition and Results of Operations	13

3.	Quantitative and Qualitative Disclosures About Market Risk
	(The information required by this item is contained in "Management's
	Discussion and Analysis of Financial Condition and Results of
	Operations.")	16

4.	Controls and Procedures	17

PART II. OTHER INFORMATION

4	Submission of Matters to a Vote of Security Holders	18

6.	Exhibits and Reports on Form 8-K	19

	Signatures	19

	Exhibit Index	20

Page 2

MOORE-HANDLEY, INC.
CONDENSED BALANCE SHEETS (UNAUDITED)
JUNE 30, 2003 AND 2002 AND DECEMBER 31, 2002

			JUNE 30				DECEMBER 31
			2003		2002		2002
ASSETS:
Current assets:
	Cash		$	49,000	$	47,000	$	43,000
	Trade receivables, net			22,159,000		23,346,000		15,216,000
	Other receivables			4,162,000		4,548,000		4,135,000
	Merchandise inventory			17,677,000		17,488,000		18,272,000
	Prepaid expenses			1,062,000		631,000		323,000
	Deferred income taxes			639,000		610,000		640,000
		Total current assets		45,748,000		46,670,000		38,629,000

Prepaid pension cost				455,000		630,000		721,000

Property and equipment				20,292,000		19,903,000		19,232,000
	Less accumulated depreciation			(11,546,000)		(11,412,000)		(10,841,000)
		Net property and equipment		8,746,000		8,491,000		8,391,000

			$	54,949,000	$	55,791,000	$	47,741,000

LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities:
	Trade payables		$	13,713,000	$	17,216,000	$	11,073,000
	Accrued payroll			550,000		645,000		672,000
	Other accrued liabilities			1,241,000		1,048,000		706,000
	Long-term debt due in one year			619,000		334,000		505,000
		Total current liabilities		16,123,000		19,243,000		12,956,000

Long-term debt				24,530,000		22,155,000		20,584,000
Deferred income taxes				1,032,000		926,000		1,033,000
Commitments (Note 4)				--		--		--

Total liabilities				41,685,000		42,324,000		34,573,000

Stockholders' equity:
	Common stock, $.10 par value; 10,000,000 shares authorized; 2,510,040 shares issued

251,000

Common stock subscribed, 106,000
shares subscribed

11,000

Capital in excess of par value

12,883,000

13,150,000

Retained Earnings

2,505,000

2,753,000

2,472,000

Less:

Treasury stock, at cost, 705,197 shares
at June 30,2003; 736,797 shares at
June 30, 2002; 743,947 shares at December 31, 2002

(2,375,000)

(2,420,000)

(2,438,000)

Common stock subscriptions receivable

(278,000)

Total stockholders' equity

13,264,000

13,467,000

13,168,000

54,949,000

55,791,000

47,741,000

See accompanying notes.

Page 3

MOORE-HANDLEY, INC.
STATEMENTS OF OPERATIONS
(UNAUDITED)

		THREE MONTHS ENDED JUNE 30				SIX MONTHS ENDED JUNE 30
		2003		2002		2003		2002
Net sales	$	38,276,000	$	40,379,000	$	78,542,000	$	79,617,000

Cost of merchandise sold		32,307,000		33,910,000		66,500,000		67,034,000
Warehouse and delivery expenses		2,486,000		2,301,000		4,864,000		4,618,000
Cost of sales		34,793,000		36,211,000		71,364,000		71,652,000

Gross profit		3,483,000		4,168,000		7,178,000		7,965,000
Selling and administrative expenses		3,456,000		3,427,000		6,657,000		6,559,000

Operating income		27,000		741,000		521,000		1,406,000
Interest expense, net		238,000		222,000		467,000		423,000

Income (loss) before income tax		(211,000)		519,000		54,000		983,000
Income tax		(78,000)		191,000		20,000		362,000

Net income (loss)	$	(133,000)	$	328,000	$	34,000	$	621,000


Net income (loss) per common share - basic	$	(0.07)	$	0.18	$	0.02	$	0.35
Weighted-average common shares outstanding - basic		1,805,000		1,773,000		1,785,000		1,773,000

Net income (loss) per common share - diluted	$	(0.07)	$	0.17	$	0.02	$	0.32
Weighted-average common shares outstanding - diluted		1,805,000		1,967,000		1,883,000		1,931,000

See accompanying notes.

Page 4

MOORE-HANDLEY, INC.
STATEMENTS OF CASH FLOW (UNAUDITED)

				SIX MONTHS ENDED JUNE 30
				2003		2002
Cash flows from operating activities:
	Net income			$	34,000	$	621,000
	Adjustments to reconcile net income to net cash used in operating activities:
		Depreciation and amortization			705,000		680,000
		Provision for doubtful accounts and vendor allowances			556,000		180,000
		(Gain) loss on sale of equipment			(1,000)		--
		Change in assets and liabilities:
			Trade and other receivables		(7,526,000)		(6,979,000)
			Merchandise inventory		595,000		(111,000)
			Trade payables and accrued expenses		3,053,000		2,125,000
			Other assets		(473,000)		(266,000)
			Total adjustments		(3,091,000)		(4,371,000)
Net cash used in operating activities					(3,057,000)		(3,750,000)

Cash flows from investing activities:
	Capital expenditures				(1,060,000)		(397,000)
	Proceeds from sale of equipment				1,000		--
	Collections on notes receivable				--		17,000
Net cash used in investing activities					(1,059,000)		(380,000)

Cash flows from financing activities:
	Sale (purchase) of treasury stock				62,000		(3,000)
	Additional borrowings on long-term debt				722,000		--
	Net borrowings (repayments) under bank loans				3,602,000		4,309,000
	Principal payments under long-term debt				(264,000)		(179,000)
Net cash provided by financing activities					4,122,000		4,127,000

Net increase (decrease) in cash					6,000		(3,000)

Cash at beginning of period					43,000		50,000
Cash at end of period				$	49,000	$	47,000

See accompanying notes.

Page 5

MOORE-HANDLEY, INC.
NOTES TO FINANCIAL STATEMENTS
(INFORMATION PERTAINING TO THE SIX MONTHS
ENDED JUNE 30, 2003 AND 2002 IS UNAUDITED)

1. Basis of Presentation

The financial statements included herein have been prepared by Moore-Handley, Inc. without audit in accordance with accounting principles generally accepted in the United States for interim financial information and with the instructions to Form 10Q and Article 10 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in complete financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures are adequate to make the information presented not misleading. The balance sheet at December 31, 2002 has been derived from the audited financial statements at that date, but does not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statements. For further information, these financial statements should be read in conjunction with the financial statements and the notes thereto included in our Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 26, 2003.

The financial information presented herein reflects all adjustments (consisting only of normal recurring adjustments) which are, in our opinion, necessary for a fair presentation of the results of the interim period. The results for the interim period are not necessarily indicative of results to be expected for the year.

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.

Certain prior year amounts have been reclassified to conform to the current year presentation. Such reclassifications had no material effect on previously reported financial position, results of operations or cash flows of the Company.

2. Description of Business and Significant Accounting Policies

We are a full-service distributor of plumbing and electrical supplies, power and hand tools, paint and paint sundries, lawn and garden equipment and other hardware and building materials products. Our customers include retail home centers, hardware stores, building materials dealers, paint stores, combination stores, a limited number of mass merchandisers, businesses and institutions.

Our customers are separated into two divisions, Core and National. Our Core division is made up of customers in our traditional 10 Southeastern states trading area and our National division includes customers across the U.S. that are outside the Southeast. We currently service over 2,300 Core and National customers. No customer or affiliated group of customers accounted for more than 2% of our net sales in 2002, 2001, and 2000.

Cash

We consider all highly liquid securities with maturity at the time of purchase of three months or less to be cash. As of June 30, 2003 we had no such instruments.

Page 6

Allowance for Doubtful Accounts

We maintain an allowance for doubtful accounts to reflect expected credit losses. We provide for bad debts based on collection history and specific risks identified on a customer-by-customer basis. A considerable amount of judgment is required to assess the ultimate realization of accounts receivable and the creditworthiness of each customer. Furthermore, these judgments must be continually evaluated and updated. If the financial condition of our customers were to deteriorate, resulting in impairment in their ability to make payments, additional allowances may be required in future periods.

Certain Concentrations

We are a wholesaler of hardware and building materials products and as such grant credit to our customers, most of whom are independent retailers located in the Southeast. We perform periodic credit evaluations of our customers' financial condition and obtain personal guarantees and/or security interests where we deem necessary.

Merchandise Inventory

We state our inventory at the lower of average cost or market. An allowance for obsolete or excess inventory is maintained to reflect the estimated net realizable value of the inventory based on current market conditions and the inventory's recent historical movement and future demands. If actual market conditions and future demand are less favorable than we project, additional inventory provisions may be required.

Other Receivables

Other receivables consist primarily of vendor rebates and vendor allowances receivable. We record the credits and payments as a reduction of cost of sales at the point in time at which the activities required by the supplier related to the credit or payment are completed, the amount is fixed and determinable, and collectibility is reasonably assured. Arrangements with suppliers for volume incentives are typically based on a contractual arrangement covering a one-year or less period of time providing for incentives based on purchasing volume. We are not obligated to purchase a specified volume of any product.

During 2003, we revised our estimate of allowance for uncollectible vendor receivables. This revision was based on new information and developments as a result of improvements in the tracking of vendor income and rebates. These improvements included an upgrade in our accounting system and internal controls. The pre-tax charge to income was $361,000. The effect on the Statement of Operations was to increase the cost of merchandise sold by $116,000 and to increase selling and administrative expenses by $245,000. (See Management's Discussion and Analysis for Gross Margin and Selling and Administrative Expenses.)

Property and Equipment

Property and equipment is stated at cost and depreciation is computed using the straight-line method over estimated useful lives.

Income Taxes

Deferred income taxes are provided for temporary differences between financial and income tax reporting, primarily related to depreciation, inventory valuation and certain accrued costs. We continuously assess the need for valuation allowances on recorded deferred tax assets and establish an allowance when we believe it is more likely than not that the asset will not be realized.

Page 7

Impairment and Depreciation of Long-Lived Assets

We estimate the depreciable lives of property and equipment when purchased and evaluate those lives when facts and circumstances change. In regards to impairment, we adopted Statement of Financial Accounting Standards (SFAS) No. 144, Accounting for the Impairment or Disposal of Long-Lived Assets, which supercedes SFAS No. 121, Accounting for the Impairment of Long-Lived Assets to be Disposed Of. Under SFAS No. 144, when events and circumstances indicate that the long-lived assets used in operations may be impaired and the undiscounted cash flows estimated to be generated from those assets are less than their carrying values, we record an impairment loss equal to the excess of the carrying value over the fair value. Long-lived assets held for disposal are valued at the lower of the carrying value or fair value less disposal costs. The adoption of SFAS 144 had no significant impact on our financial condition or results of operations.

Pensions

We have pension benefit costs and credits that are developed from actuarial valuations. Inherent in these valuations are key assumptions including discount rates and expected return on plan assets. We are required to consider current market conditions, including changes in interest rates, in selecting these assumptions. Periodic changes in these key assumptions, along with changes in head count, could have a significant impact on future pension costs and recorded pension liabilities.

Incentive Compensation

We account for our stock compensation arrangements under the provisions of Accounting Principles Board Opinion No. 25, Accounting for Stock Issued to Employees (APB No. 25), under which no compensation cost has been recognized.

Stock Options

The Company uses the intrinsic value method for stock option grants to individuals defined as employees under which no compensation is recognized for options granted at or above the fair market value of the underlying stock on the grant date. The Company uses the fair value method for stock options granted for services rendered by non-employees in accordance with the SFAS No. 123, Accounting for Stock Based Compensation.

The following table illustrates the effect on net income and earnings per share if the Company had applied the fair value recognition provisions of FASB Statement No. 123, Accounting for Stock-Based Compensation, to stock-based employee compensation.

	Three months ended June 30		Six months ended June 30
	2003	2002	2003	2002
Net income (loss) - as reported . . . . . . . . . . . . . . . . . . .	$ (133,000)	$ 328,000	$ 34,000	$ 621,000
Less: Total stock-based employee compensation expense determined under fair value based methods for all awards, net of related tax effects . . . . . . . . . . .	5,000	9,000	11,000	30,000
Net income (loss) - pro forma . . . . . . . . . . . . . . . . . . . .	$ (138,000)	$ 319,000	$ 23,000	$ 591,000
Net income (loss) per share basic - as reported . . . . . .	$ (0.07)	$ 0.18	$ 0.02	$ 0.35
Net income (loss) per share diluted - as reported . . . . . .	$ (0.07)	$ 0.17	$ 0.02	$ 0.32
Net income (loss) per share basic - pro forma . . . . . . . .	$ (0.08)	$ 0.18	$ 0.01	$ 0.33
Net income (loss) per share diluted - pro forma . . . . . . .	$ (0.08)	$ 0.16	$ 0.01	$ 0.31

Page 8

Income or Loss per Common Share

Basic net income or loss per share is computed using the weighted average number of common shares outstanding. Diluted net income or loss per share is computed using the weighted average number of common shares outstanding plus the effect of dilutive stock options.

Revenue Recognition

We recognize revenues, net of estimated sales returns, discounts and allowances, when goods are shipped, title has passed, the sales price is fixed and the collectibility is reasonably assured. We assume no significant obligations after goods are shipped. Regarding our direct shipment program, sales are recorded gross in our statements of operations since we act as principal in the sales transaction and assume the credit risk.

We record provisions for estimated sales returns and allowances on sales in the same period as the related sales are recorded. These estimates are based on historical sales returns and analyses of credit memo data and other known factors. If the historic data we use to calculate these estimates do not properly reflect future returns and allowances, net sales could either be understated or overstated.

In September 2000, the Emerging Issues Task Force issued EITF 00-10, Accounting for Shipping and Handling Fees and Costs (EITF 00-10). EITF 00-10 requires shipping and handling fees billed to customers to be classified as revenue and shipping and handling costs to be either classified as cost of sales or disclosed in the notes to the consolidated financial statements. Shipping and handling costs associated with inbound freight are included in cost of sales. Shipping and handling fees billed to customers are included in net sales in the Statement of Operations with the associated cost included in warehouse and delivery expense.

Statement of Position 93-7, Reporting on Advertising Costs, requires the disclosure of advertising costs. We expense the cost of advertising when incurred.

3. Long-Term Debt

Long-term debt at June 30, 2003 and 2002 and December 31, 2002 includes obligations under capital leases, term loans and a revolving line of credit all of which approximate fair value. Long-term debt at June 30, 2003 and 2002 and December 31, 2002 consisted of:

	JUNE 30				DECEMBER 31
	2003		2002		2002

Note payable to bank (fixed rate of 8.25%; due January 2004	$	--	$	452,000	$	--

Line of credit (variable rate of 3.83%, 4.42% and 3.94% at June 30, 2003 and 2002, and December 31, 2002, respectively; due April 2005)		17,356,000		21,827,000		13,755,000

Term loan (fixed rate of 5.03%; due December 2008)		6,843,000		--		7,000,000

Term loan (fixed rate of 5.575% due April, 2007)		716,000		--		--

Capital lease obligations		234,000		210,000		334,000
		25,149,000		22,489,000		21,089,000
Less current maturities		(619,000)		(334,000)		(505,000)
Long-term debt	$	24,530,000	$	22,155,000	$	20,584,000

Page 9

We have financed the purchase of transportation and computer equipment with leases. These leases are being accounted for as capital leases. The amortization expense relating to these leases is combined with depreciation expense.

In February 2002, we negotiated an amendment to our working capital line that extended the maturity date to April 2005. The amendment will allow maximum borrowings of $28,000,000 with availability based on 85% of eligible receivables and 50% of eligible inventory up to $11,000,000. The advance rate on eligible inventory is increased to 60% from 50% during the months of December, January and February to compensate for reduced borrowing availability due to seasonal decline in eligible accounts receivable. The borrowings bear interest at the prime interest rate or, at our option, 2 1/2% over LIBOR (see Liquidity and Capital Resources in Management's Discussion and Analysis) . Our receivables and inventory secure the borrowings.

In November 2002, we received a $7,000,000 term loan secured by a real estate mortgage on our Pelham facility and a security interest in certain equipment. The loan bears a fixed interest rate of 5.03% payable in monthly installments based on a fifteen (15) year amortization schedule and has a maturity date of December 1, 2008. The net proceeds of this term loan were used to pay off an existing term note and reduce the outstandings under the existing revolving line of credit.

In May 2003, we negotiated an Equipment Financing Agreement for the purpose of financing equipment purchases. This agreement allows maximum borrowings of $1,500,000 secured by certain equipment purchased prior to September 1, 2003. The borrowings are to be paid in forty-eight equal monthly installments and bear a fixed interest rate of 5.575%.

4. Commitments

Commitments consist of future rental payments under miscellaneous non-cancelable operating leases of which the last expires in 2008. Projected rentals for the 2003 fiscal year are $662,000.

5. Pension Plans

We have two trusteed, noncontributory, qualified defined benefit pension plans covering substantially all of our employees. Retirement benefits are provided based on years of service and earnings for salaried employees and years of service for hourly employees. Contributions to the pension plans are based on the amount necessary to fund the net periodic pension cost. Contributions are limited to the amount that can be currently deducted for federal income tax purposes and are based on the amount necessary to fund the minimum level required by the Employee Retirement Income Security Act of 1974.

6. Incentive Compensation Plan

On May 23, 1991, the stockholders approved the 1991 Incentive Compensation Plan pursuant to which a maximum aggregate of 460,000 shares of common stock could be issued to employees and directors until April 12, 2001. No further options may be granted under the 1991 Incentive Compensation Plan. On April 26, 2001, the stockholders approved the 2001 Incentive Compensation Plan pursuant to which a maximum aggregate of 460,000 shares of common stock may be issued to employees and directors until March 23, 2011.

We have elected to follow APB No. 25 and related interpretations in accounting for our employee stock options. Under APB No. 25, because the exercise price for the employees' stock options equals the market price of the underlying stock on the date of grant, no compensation expense is recognized. These options vest either in six months after the date of grant or in equal annual installments over five years.

Page 10

Pro forma information regarding net income and earnings per share is required by FASB Statement No. 123, Accounting for Stock-Based Compensation ( SFAS No. 123), and has been determined as if we had accounted for our employee stock options under the fair value method of Statement No. 123. The fair value for these options was estimated at the date of grant using Black-Scholes option pricing model with the following weighted-average calculations:

	2003	2002
Risk free interest rate	5.65%	5.67%

Dividend yield	0.00%	0.00%

Volatility factor	.348	.355

Weighted-average expected life	10 years	10 years

For purposes of pro forma disclosures, the estimated fair value of the options is amortized to expense over the options' vesting period. Our pro forma information follows:

	Three Months Ended June 30		Six Months Ended June 30
	2003	2002	2003	2002
Pro forma net income (loss)	$ (138,000)	$ 319,000	$ 23,000	$ 591,000

Pro forma net income (loss)
per share - basic	$ (0.08)	$ 0.18	$ 0.01	$ 0.33
Pro forma net income (loss)
per share - diluted	$ (0.08)	$ 0.16	$ 0.01	$ 0.31

7. Employee Stock Purchase Plan

During 1998, the stockholders approved the Employee Stock Purchase Plan (the 1998 Plan). The 1998 Plan is designed to encourage and facilitate stock ownership to its employees by providing a continued opportunity to purchase common stock, generally through voluntary after-tax payroll deductions. The price per share of the common stock shall be 85% of the fair market value on the date of the grant of the option to purchase qualified stock and shall not be less than 100% of the fair market value on the date of the grant of the option to purchase non-qualified stock. During 2002, 50 shares were issued under the 1998 Plan from treasury stock compared to 13,500 shares in 2001.

In connection with the 1998 Plan, certain individuals issued three-year promissory notes to us whereby the individuals are obligated to pay annual interest of 8.5% and a balloon principal payment no later than June 30, 2001. These notes are secured by related shares of common stock. In June 2001, one note was paid in full and the others were amended to extend their maturity date to June 2003 and to reset the interest rates to our average cost of borrowing plus 2.25%. The amended promissory notes were paid in full as of June 30, 2003.

Page 11

On July 23, 2002, the Board of Directors unanimously adopted the 2002 Employee Stock Purchase Plan (the "2002 Plan"). In connection with the 2002 Plan, up to 200,000 shares of common stock may be issued to employees at the lesser of 85% of the fair market value at the date of grant ($2.54 per share in the case of options granted July 23, 2002) or 85% of the fair market value on the date of exercise (which is July 23, 2003 in the case of the July 2002 grant). The 2002 Plan was approved by the stockholders of the Company at the 2003 annual meeting. At July 23, 2003, the exercise date, the option price for employees was $2.30.

8. Related Party Transaction

During May, 2003 the Board of Directors authorized us to purchase from Pierce E. Marks, Jr., a board member, 150,000 shares of Common Stock at $3.50 per share. We purchased 50,000 shares of Common Stock from Mr. Marks in June and 100,000 shares of Common Stock from Mr. Marks in early July at $3.50 per share.

9. Net Income Per Share

Computation of basic and diluted earnings per share:

(In thousands except per share amounts)
	Net Income (Loss)	Shares	Per Share Amount
For the three months ended June 30, 2003
Basic earnings per share	$ (133)	1,805	$ (0.07)
Options	--
Diluted earnings per share	$ (133)	1,805	$ (0.07)

	Net Income (Loss)	Shares	Per Share Amount
For the three months ended June 30, 2002
Basic earnings per share	$ 328	1,773	$ 0.18
Options	--	194
Diluted earnings per share	$ 328	1,967	$ 0.17


	Net Income (Loss)	Shares	Per Share Amount
For the six months ended June 30, 2003
Basic earnings per share	$ 34	1,785	$ 0.02
Options	--	98
Diluted earnings per share	$ 34	1,883	$ 0.02

	Net Income (Loss)	Shares	Per Share Amount
For the six months ended June 30, 2002
Basic earnings per share	$ 621	1,773	$ 0.35
Options	--	158
Diluted earnings per share	$ 621	1,931	$ 0.32

Page 12

Item 2.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
(UNAUDITED)

NET SALES

Net sales for the quarter ended June 30, 2003 decreased $2,103,000 or 5.2% from the same quarter in 2002. The sales in the second quarter of 2002 included orders booked at our Spring Mart held in May. There was no Spring Mart held in the second quarter of 2003, resulting in lower direct orders from our customers.

The following table sets forth the trend in net sales for 2002 and the first and second quarter of 2003:

				Net Sales Amount (in thousands)	Increase (Decrease) vs. Same Quarter in Previous Year Amount (in thousands)		Percent Change
		Quarter
2002	-	1st	.....................	$ 39,238		$ (164)	-4.2	%
		2nd	.....................	40,379		549	1.4
		3rd	.....................	38,851		(1,007)	-2.5
		4th	.....................	32,153		(1,547)	-4.6

2003	-	1st	.....................	40,266		1,028	2.6
		2nd	.....................	38,276		(2,103)	-5.2

OPERATIONS

The following table sets forth certain financial data as a percentage of net sales for the periods indicated:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2003		2002		2003		2002
Net sales	100.0	%	100.0	%	100.0	%	100.0	%
Gross margin	15.6		16.0		15.3		15.8
Warehouse and delivery expenses	6.5		5.7		6.2		5.8
Gross profit	9.1		10.3		9.1		10.0
Selling and administrative expenses	9.0		8.5		8.5		8.2
Operating income	0.1		1.8		0.7		1.8
Interest expense, net	0.6		0.5		0.6		0.5
Income before provision for income tax	(0.3)	%	1.3	%	0.1	%	1.3	%

Page 13

GROSS MARGIN

The gross margin percentage for the quarter ended June 30, 2003 was 15.6%, slightly below the 16.0% rate for the same period last year. An adjustment was made during the quarter as a result of a change in the estimated reserve required for volume rebates receivable. This resulted in a reduction in gross margin during the second quarter 2003 of $116,000 or 0.3% of sales. (See related discussion below in Selling and Administrative expenses and Note 2 - Other Receivables in Notes to Financial Statements.) The following table sets forth the gross margin dollars, gross margin percentages and year-over-year changes for 2002 and the first and second quarter of 2003:

				Gross Margin				Increase (Decrease) vs. Same Quarter in Previous Year
				Amount		Percentage		Amount		Percentage
				(in thousands)		of Sales		(in thousands)		Points
		Quarter
2002	-	1st	.....................	$	6,115	15.6	%	$	(275)	(0.6)	%
		2nd	.....................		6,469	16.0			193	0.3
		3rd	.....................		6,131	15.8			(113)	0.1
		4th	.....................		5,351	16.6			(345)	(0.3)

2003	-	1st	.....................		6,073	15.1			(42)	(0.5)
		2nd	.....................		5,969	15.6			(500)	(0.4)

WAREHOUSE AND DELIVERY EXPENSES

Warehouse and delivery expense increased $185,000 or 8.0% compared to the same quarter last year mainly due to an increase in unit labor costs, contract carrier expense and expense involved in warehouse re-setting. As a percent of warehouse shipments, warehouse and delivery expense increased to 9.9% from 9.0% compared to the same quarter last year.

The following table sets forth the trend in warehouse and delivery expenses in 2002 and the first quarter of 2003:

Warehouse and Delivery
Expenses

Increase (Decrease)
vs. Same Quarter
in Previous Year

Amount
(in thousands)

Percent of Warehouse Shipments

Amount
(in thousands)

Percentage
Points

Quarter

2002

1st

.....................

2,317

9.4

0.5

2nd

.....................

2,301

9.0

0.3

3rd

.....................

2,391

9.7

0.4

4th

.....................

2,410

11.1

0.8

2003

1st

.....................

2,378

9.4

0.0

2nd

.....................

2,486

9.9

185

0.9

Page 14

SELLING AND ADMINISTRATIVE EXPENSES

Selling and administrative expense for the second quarter of 2003 increased by $29,000 or 0.8% over the same period in 2002. Reduced selling salaries and benefits were offset by a reduction in vendor allowances. An adjustment was made during the quarter as a result of a change in the estimated reserves required for vendor allowances receivable. This resulted in an increase in net selling and administrative expense of $245,000 or 0.6% of sales. (See related discussion above in Gross Margin and Note 2 - Other Receivables in Notes to Financial Statements.) The following table sets forth the quarterly trend in selling and administrative expenses in 2002 and the first and second quarter of 2003:


				Selling and Administrative Expenses				Increase (Decrease) vs. Same Quarter in Previous Year
		Quarter		Amount (in thousands)		Percent of Sales	Amount (in thousands)		Percentage Points
2002	-	1st	.....................	$	3,132	8.0	$	(135)	(0.3)	%
		2nd	.....................		3,427	8.5		133	0.2
		3rd	.....................		3,453	8.9		66	0.4
		4th	.....................		3,244	10.1		323	1.4

2003	-	1st	.....................		3,201	8.0		69	0.0
		2nd	.....................		3,456	9.0		29	0.5

INTEREST EXPENSE, NET

Interest expense, net increased $16,000 or 7.2% during the second quarter of 2003 compared to the same period during 2002. The increase was primarily due to an increase in average borrowings. The weighted average interest rates for the quarter ended June 30, 2003 and 2002 were 4.52% and 4.68%, respectively.

LIQUIDITY AND CAPITAL RESOURCES

From December 31, 2002 to June 30, 2003, our net trade receivables increased $6,943,000 or 45.6%. The increase was primarily due to seasonal sales increases and promotions. Net trade receivables decreased during the second quarter 2003 by $1,187,000 or 5.1% compared to the second quarter 2002 mainly due to a reduction in sales.

Inventories decreased by $595,000 or 3.3% as of June 30, 2003 compared with December 31, 2002 mainly in response to our efforts to increase inventory turns. Inventories increased $189,000 or 1.1% compared to June 30, 2002 mainly due to the addition of new products.

Trade payables increased $2,639,000 or 23.8% from December 31, 2002 because of extended terms received from suppliers in connection with the seasonal promotions. Trade payables decreased $3,503,000 or 20.3% compared to June 30, 2002 mainly because of an increased mix of purchases of merchandise with accelerated payment terms and a reduction in sales.

At June 30, 2003 we had unused lines of credit of $9,210,000 based on a collateral base of $26,566,000.

Page 15

In February 2002, we negotiated an amendment to our working capital line that extended the maturity date to April 2005. We believe our new credit facility is adequate to finance our current working capital needs. We believe that we will have sufficient cash flow from operations and available capacity under the Credit Facility, to fund both our current operations and anticipated internal expansion, for the current year and for the additional period remaining under the Credit Facility.

In November 2002, we received a $7,000,000 term loan secured by a real estate mortgage on our Pelham facility and a security interest in certain equipment. The loan bears a fixed interest rate of 5.03% payable in monthly installments based on a fifteen (15) year amortization schedule and has a maturity date of December 1, 2008. The net proceeds of this term loan were used to pay off an existing term note and reduce the outstandings under the existing revolving line of credit.

In May 2003, we negotiated an Equipment Financing Agreement for the purpose of financing equipment and purchases. This agreement allows maximum borrowings of $1,500,000 secured by certain equipment to be purchased prior to September 1, 2003. The borrowings are to be paid in forty-eight equal monthly installments and bear a fixed interest rate of 5.575%. At June 30, 2003 $716,000 was outstanding under this facility.

INTEREST RATE RISK

The following discussion about our interest rate risk includes "forward-looking statements" that involve risks and uncertainties. Actual results could differ materially from those projected in the forward-looking statements.

Our principal credit agreement bears a floating interest rate based on the prime rate or, at our option, at 2 1/2 % over LIBOR. Accordingly, we are subject to market risk associated with changes in interest rates. At June 30, 2003, $17,356,000 was outstanding under the credit agreement. For 2002, the average principal amount outstanding under the credit agreement was $19,693,000. Assuming the average amount outstanding under the credit agreement during 2003 is equal to such average amount outstanding during 2002 less the average outstanding under our fixed rate loans of approximately $7,500,000, a 1% increase in the applicable interest rate during 2003 would result in additional annual interest expense of approximately $121,930, which would reduce cash flow and pre-tax earnings dollar for dollar.

Page 16

INFORMATION CONCERNING FORWARD-LOOKING STATEMENTS

Certain of the statements contained in this report (other than the financial statements and other statements of historical fact) are forward-looking statements. Words such as "expects" and "believes" indicate the presence of forward-looking statements. There can be no assurance that future developments will be in accordance with management's expectations or that the effect of future developments on us will be those anticipated by management. Among the factors that could cause actual results to differ materially from estimates reflected in such forward-looking statements are the following:

competitive pressures on sales and pricing, including those from other wholesale distributors and those from retailers in competition with our customers;

our ability to achieve projected cost savings from our warehouse modernization program and ongoing cost reduction efforts;

changes in cost of goods and the effect of differential terms and conditions available to our larger competitors;

uncertainties associated with our national sales initiative or any acquisition which we may seek to implement; and

changes in general economic conditions, including increases in interest rates.

ITEM 4. CONTROLS AND PROCEDURES

The Company maintains disclosure controls and procedures that are designed to ensure that information required to be disclosed in the Company's Exchange Act reports is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission, and that such information is accumulated and communicated to the Company's management, including its Chief Executive Officer, Chief Operating Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures, management recognized that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives, and management necessarily was required to apply its judgment in evaluating the cost-benefit relationship of possible controls and procedures.

Within 90 days prior to the date of this Quarterly Report, the Company carried out an evaluation, under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer, Chief Operating Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures. Based on the foregoing, the Company's Chief Executive Officer, Chief Operating Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective.

There have been no significant changes in the Company's internal controls or in other factors that could significantly affect the internal controls subsequent to the date the Company completed its evaluation.

Page 17

PART II. OTHER INFORMATION

ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Our annual meeting was held on May 22, 2003. At the meeting, Messrs. William Riley, Pierce E. Marks, Jr., Michael B. Stubbs, Michael Palmer, and Michael Gaines were elected as directors of Moore-Handley, Inc.

The following table sets forth the distribution of votes cast with regard to each of the nominees:

Nominee	Votes Cast for Nominee	Votes Withheld
William Riley	1,492,375	73,194
Pierce E. Marks, Jr.	1,492,375	73,194
Michael B. Stubbs	1,492,375	73,194
Michael Palmer	1,492,375	73,194
Michael Gaines	1,492,375	73,194

At the annual meeting the stockholders ratified the appointment by the Board of Directors of Ernst & Young LLP, Certified Public Accountants, as independent auditors for the year 2003 and approved the Moore-Handley, Inc. 2002 Employee Stock Purchase Plan.

The following table sets forth the distribution of votes cast with respect to the appointment of Ernst & Young.

For		Against		Abstained
1,480,879		83,540		1,150

The following table sets forth the distribution of votes cast with respect to the approval of the Moore-Handley, Inc. 2002 Employee Stock Purchase Plan.

For		Against		Abstained		Broker Non-Vote
1,114,901		88,744		200		361,724

Page 18

ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K

(a)	Exhibit 3(a) - Restated Certificate of Incorporation of
	Company, filed as Exhibit 3(a) to the Company's Annual
	Report on Form 10-K for the year ended December 31, 1987
	and incorporated herein by reference,

	3(a)-1 - Amendment to Restated Certificate of Incorporation
	dated May 7, 1987, filed as Exhibit 3(a)-1 to the Company's
	Annual Report on Form 10-K for the year ended December 31,
	1987 and incorporated herein by reference,

	3(b) - By-Laws of the Company, filed as Exhibit 3(d) to the
	Company's Registration Statement on Form S-1 (Reg. No. 33-
	3032) and incorporated herein by reference,

	3(b)-1 - Article VII of By-Laws of the Company, as amended
	May 7, 1987 filed as Exhibit 3(b)-1 to the Company's Annual
	Report on Form 10-K for the year ended December 31, 1987
	and incorporated herein by reference,

	(31) Certifications by William Riley, Chief Executive Officer, and Gary C. Mercer, Chief Financial Officer, pursuant to Section 302 of Sarbanes-Oxley Act of 2002,

	(32) Certifications by William Riley, Chief Executive Officer, and Gary C. Mercer, Chief Financial Officer, under Section 906 of Sarbanes-Oxley Act of 2002,

(b)	Reports on Form 8-K
	Form 8-K was filed on May 1, 2003 furnishing the earnings release with respect to first quarter operating results.

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 thereunto duly authorized.

		MOORE-HANDLEY, INC.
		(Registrant)

Date:	August 14 , 2003	/s/ Michael J. Gaines
		Michael J. Gaines
		President and
		Chief Operating Officer

		/s/ Gary C. Mercer
		Gary C. Mercer
		Chief Financial Officer

Page 19

EXHIBIT INDEX

	EXHIBIT NO.	DESCRIPTION

3	(a)	Restated Certificate of Incorporation of Company, filed as
		Exhibit 3(a) to the Company's Annual Report on Form 10-K
		For the year ended December 31, 1987 and incorporated herein
		by reference.

3	(a)-1	Amendment to Restated Certificate of Incorporation dated
		May 7, 1987, filed as Exhibit 3(a)-1 to the Company's Annual
		Report on Form 10-K for the year ended December 31, 1987
		and incorporated herein by reference.

3	(b)	By-laws of the Company, filed as Exhibit 3(d) to the
		Company's Registration Statement on Form S-1 (Reg. No.
		33-3302) and incorporated herein by reference.

3	(b)-1	Article VII of By-laws of the Company, as amended May 7,
		1987 filed as Exhibit 3(b)-1 to the Company's Annual
		Report on Form 10-K for the year ended December 31, 1987
		and incorporated herein by reference.

31		Certifications by William Riley, Chief Executive Officer, and Gary C. Mercer, Chief Financial Officer, pursuant to Section 302 of Sarbanes-Oxley Act of 2002,

32		Certifications by William Riley, Chief Executive Officer, and Gary C. Mercer, Chief Financial Officer, under Section 906 of Sarbanes-Oxley Act of 2002,

Page 20

Exhibit 31

CERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, William Riley, certify that:

I have reviewed this quarterly report on Form 10-Q of Moore-Handley, Inc.;

Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 14 and 15d - 14) for the registrant and we have:

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

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

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

The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

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

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

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

Date: August 14, 2003

/s/ William Riley

William Riley
Chairman and Chief Executive Officer

Page 21

Exhibit 31

CERTIFICATIONS PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Gary C. Mercer, certify that:

I have reviewed this quarterly report on Form 10-Q of Moore-Handley, Inc.;

Based on my knowledge, this quarterly report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this quarterly report;

Based on my knowledge, the financial statements, and other financial information included in this quarterly report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this quarterly report;

The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a - 14 and 15d - 14) for the registrant and we have:

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

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

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

The registrant's other certifying officers and I have disclosed, based on our most recent evaluation, to the registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent function):

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

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

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

Date: August 14, 2003

/s/ Gary C. Mercer

Gary C. Mercer
Chief Financial Officer

Page 22

Exhibit 32

CERTIFICATION
Pursuant to 18 United States Code § 1350

The undersigned hereby certifies that the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2003 of Moore-Handley, Inc. (the "Company") filed with the Securities and Exchange Commission on the date hereof fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Gary C. Mercer
Name: Gary C. Mercer
Title: Chief Financial Officer
Date: August 14, 2003

Page 23

Exhibit 32

CERTIFICATION
Pursuant to 18 United States Code § 1350

The undersigned hereby certifies that the Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2003 of Moore-Handley, Inc. (the "Company") filed with the Securities and Exchange Commission on the date hereof fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained in such report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ William Riley
Name: William Riley
Title: Chairman and Chief Executive Officer
Date: August 14, 2003

Page 24

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