6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
The company reported a net loss of $3.4 million for the full year of 2002, which includes $4.5 million of Kraft termination related severance costs and long-lived asset impairment expenses, profit of $1.7 million on the second quarter $26.2 million Kraft inventory sale, a $0.9 million benefit related to a more favorable conclusion of previously estimated contract termination matters, a $0.3 million insurance recovery benefit and a $1.9 million non-cash charge related to the first quarter adoption of the new accounting standard for goodwill. This compares to a net loss of $13.1 million or $4.25 per share for the same period of 2001, which included $7.7 million of charges for uncollectible accounts. Excluding these items in both periods, there was a $5.5 million improvement in 2002 net loss compared to 2001, attributable to eliminating unprofitable contracts, adding new profitable contracts and reducing costs.
Strategic Distribution's CEO, Don Woodring, commented on the results stating, "We are pleased that our hard work in 2002 produced significantly better results than the prior year. In spite of a soft economy, we were able to improve the net loss within our core business by more that $5 million. While we continue to maintain a sharp focus on costs and productivity, we believe that we are well positioned to build upon a good base of business with profitable new contracts."