6309 Monarch Park Place, Suite 203
Niwot, CO 80503, USA
Phone (303) 443-5060
Toll free (888) 742-5060
Net income for the year ended January 31, 2003 increased 32% to $58.1 million versus $44.1 million last year. Earnings per share increased 30% to $2.45 versus $1.88 last year. If amortization expense had been excluded from last year's earnings, earnings per share would have been $2.11. Net sales for the year ended January 31, 2003 were $3.07 billion compared to $3.04 billion last year. Sales for the year included $95.3 million from the acquisition of Utiliserve.
David Hughes, Chairman and CEO, commented, "Despite the difficult commercial construction market, our comparable branch sales showed improvement over the prior quarters and were within the range we had anticipated. We are continuing with our cost containment and sales initiatives as we believe these programs, combined with a focus on asset management and cash flows, will strengthen our financial and market positions in these challenging economic times."
In related news, The Hughes Supply Inc. Board of Directors announced today its plans for CEO succession. Effective at its annual meeting in May, the Board will appoint its President, Tom Morgan to the additional post of CEO. In Hughes' 75 year history, the Company has had only three other Chief Executive Officers. The first CEO was Russell Hughes, the second was Harry Hughes, and in 1974 David Hughes was elected to the office of CEO. For continuity and for the company to benefit from his years of experience, Mr. Hughes will remain as Chairman of the Board.
David Hughes said, "Tom Morgan was recruited two years ago to serve as President and COO. Prior to joining Hughes, Tom learned the distribution business with more than 20 years at Genuine Parts Co. In his short time with us, Tom has led the way to continued improvement and has proven to be the person we need to take our company to the next level."
Mr. Hughes has had a long and distinguished career with Hughes that began on a part-time basis while attending high school. After high school Mr. Hughes attended the University of Florida where he earned his Bachelor's degree in Finance and Juris Doctor degree in Law. Upon graduation from law school in 1967 he joined the Company on a full-time basis. In 1972, Mr. Hughes was promoted to the office of President and in 1974 to the office of Chief Executive Officer. In 1986 he was elected to the additional office of Chairman of the Board.
Under his leadership, the Company grew from a local distributor of building supplies with sales of $30 million to a diversified national company with over 450 branches in 34 states and sales exceeding $3 billion. The growth of Hughes Supply from a small regional company to one of the nation's largest wholesale distributors of construction materials is in large part due to the vision and drive of the Hughes family and in particular, David Hughes. During the period when Mr. Hughes was Chief Executive Officer the Company began a growth and operating strategy that was designed to (i) increase its revenues and profitability and (ii) reduce the impact of