6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
Net earnings for the fourth quarter were $5.9 million compared to $6.9 million the previous year. Net sales for the fourth quarter were $230.6 million compared to $218.2 million in the 2001 quarter.
The company reported a net loss in 2002 of $33.6 million compared to net earnings of $11.7 million the previous year. The 2002 results include a pre-tax charge of $86.0 million taken in the second quarter to cover the write-down of K-MAX helicopter assets, principally inventories; for cost growth associated with the Australian SH-2G(A) helicopter program; and to phase out operations at the company's Moosup, Conn. plant by the end of 2003. The 2001 results included a $31.2 million adjustment to sales and pre-tax earnings in the second quarter related to growth in estimated costs to complete the SH-2G(A) helicopter program for Australia.
Excluding the second-quarter $86.0 million pre-tax charges, 2002 net earnings would have been $21.8 million. Excluding the $31.2 million adjustment to the Australia program, 2001 net earnings would have been $30.5 million.
Net sales for 2002 were $882.1 million, compared to $876.9 million the previous year. The Australia program adjustments reduced 2002 net sales by $6.5 million and 2001 net sales by $31.2 million.
The company maintains a $225 million revolving credit agreement with eight banks to provide for its working capital needs, business acquisitions, and other corporate requirements. The agreement includes a $150 million five-year credit facility maturing in November 2005 and a $75 million 364-day facility renewable annually in November. In the fourth quarter, the banking group renewed the 364-day facility to November 2003.
SUMMARIZED REPORT BY SEGMENT
Fourth quarter operating profits for the segment were $6.5 million, compared to $9.2 million last year. Sales were $74.7 million for the quarter, including $7.9 million from acquisitions made during 2002 and 2001, compared to $77.8 million a year ago. There were no net sales from acquisitions in 2001.
The segment had an operating loss of $55.2 million for the year, primarily due to the previously described charges. Excluding the charges, segment operating profits in 2002 would have been $30.8 million. In 2001, the segment had an operating profit of $6.5 million. Excluding the adjustment, the segment operating profits would have been $37.7 million in 2001. Sales for 2002 were $275.9 million (including $20.0 million from acquisitions made during 2002 and 2001), compared to $301.6 million last year. Excluding the impact of the Australia program adjustments, 2002 sales would have been $282.4 million, compared to $332.8 million for 2001.
Industrial Distribution Segment
Industrial Distribution's operating profit rose to $3.3 million in the quarter, compared to $1.9 million a year ago. Sales were $118.4 million, including $10.6 million from acquisitions made during 2002 and 2001, compared to $108.0 million a year ago, which included $8.0 million from acquisitions made in 2001.
Segment operating profits for the full year were $12.3 million, compared to $13.2 million the previous year. Sales in 2002 were $477.2 million (including $38.0 million from acquisitions made during 2002 and 2001), compared to $453.7 million in 2001, which included $8.0 million from acquisitions made in 2001.
Music Distribution Segment
Operating profits for the Music segment were $2.8 million in the fourth quarter, compared to $2.4 million a year ago. Sales were $37.5 million in the quarter, including $3.7 million from the acquisition of Latin Percussion in October, compared to $32.4 million a year ago.
Operating profits for the year 2002 were $7.2 million, compared to $6.6 million a year ago. Sales for year were $128.9 million (including $3.7 million from the