SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K
(X)[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 19942002
OR
( )[ ] 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 1-6003
FEDERAL SIGNAL CORPORATION
(Exact name of the Registrant as specified in its charter)
DELAWARE 36-1063330
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1415 WEST 22ND STREET, OAK BROOK, ILLINOIS 60521West 22nd Street,
Oak Brook, Illinois 60523
(Address of principal executive offices) (Zip Code)
The Registrant's telephone number, including area code (708)(630) 954-2000
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange onEach Exchange
Title of each class which registered
COMMON STOCK, PAR VALUE $1.00 PER SHARE,
WITH PREFERRED SHARE PURCHASE RIGHTS NEW YORK STOCK EXCHANGEEach Class on Which Registered
Common Stock, par value$1.00 per share, New York Stock Exchange
with preferred share purchase rights
Securities registered pursuant to Section 12(g) of the Act: None
(Title of class)
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 such filing
requirements for the past 90 days.
Yes [X]X No [ ]___
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (Section 229.405(ss.229.405 of this chapter) is not contained herein, and will
not be contained, to the best of the Registrant's knowledge, in definitive proxy
or information statements incorporated by reference in Part III of this Form
10-K or any amendment to this Form 10-K. [X]
State the aggregate market value of voting stock held by nonaffiliates of the
Registrant as of March 1, 1995.June 30, 2002.
Common stock, $1.00 par value -- $817,151,270$889,617,080
Indicate the number of shares outstanding of each of the Registrant's classes of
common stock, as of March 1, 1995.2003.
Common stock, $1.00 par value -- 45,291,023- 47,967,626 shares
DOCUMENTS INCORPORATED BY REFERENCEDocuments Incorporated by Reference
Portions of the annual reportAnnual Report to shareholdersShareholders for the year ended December 31,
1994,2002 are incorporated by reference into Parts I and& II. Portions of the proxy
statement for the Annual Meeting of Shareholders to be held on April 19, 1995,17, 2003
are incorporated by reference intoin Part III.
PART I
Item 1. Business.
Federal Signal Corporation, founded in 1901, was reincorporated as a
Delaware Corporation in 1969. The company is a manufacturer and worldwide
supplier of safety, signaling and communications equipment, hazardous area
lighting, fire trucks and emergencyrescue vehicles, vehicle-mounted aerial access platforms, street
sweeping and vacuum loader vehicles, refuse collection truck bodies, high
pressure water blasting systems, parking revenue and catch basin cleaning vehicles, parkingaccess control equipment,
custom on-premise signage,carbide and superhard tipped cutting tools, precision metal stamping punches and
related die components.components, plastic injection mold components and custom on-premise
signage.
Products produced and services rendered by the Registrant and its
subsidiaries (referred to collectively as the "Registrant" herein, unless
context otherwise indicates) are divided into groups
(business segments) as follows:four major operating groups:
Safety Products, (previously knownTool, Environmental Products and Fire Rescue. A smaller group,
Sign, reported as Signal), Sign, Tooldiscontinued operations in the Registrant's financial
statements, is currently being offered for sale. Business units are organized
under each segment because they share certain characteristics, such as
technology, marketing, and Vehicle. This classification of
productsproduct application that create long-term synergies.
The Financial Review and services is based upon Registrant's historical
divisional structure established by managementNote M - Segment Information included in the Notes to
Consolidated Financial Statements contained in the Annual Report to Shareholders
for the purposes of
internal control, marketing and accounting.year ended December 31, 2002 are incorporated herein by reference.
Developments, including acquisitions and divestitures of businesses,
considered significant to the companyRegistrant or individual segments are described
under the following discussions of the applicable groups.
Environmental Products Group
The Financial Review sections, "Consolidated ResultsEnvironmental Products Group manufactures and markets worldwide a full
range of Operations," "Group Operations"street and "Financial Positionparking lot sweeping, industrial vacuuming, municipal catch
basin/sewer cleaning vehicles, high-performance waterblasting equipment, and
Cash
Flow,"refuse collection truck bodies. Products are also manufactured for the emerging
markets of hydro-excavation, glycol recovery and Note N - Segment Information containedsurface cleaning. The group
competes in these markets under major brand names of Elgin, Ravo, Athey,
Guzzler, Jetstream, Wittke and Leach. Most sales are made to governmental
customers including municipalities, private contractors and industrial plants.
Elgin is the leading U.S. brand of street sweepers available for
municipalities and contractors. Utilizing three basic cleaning methods
(mechanical sweeping, vacuuming and recirculating air), Elgin brand products are
primarily designed for large-scale cleaning of curbed streets, parking lots and
other paved surfaces. The group acquired Five Star Manufacturing in January
1998, a manufacturer of a single-engine mechanical sweeper designed for and by
contractors. This acquisition enhanced the group's share in the annual
reportprivate
contractor market. In March 2001, the group acquired all of the assets of Athey
Products Corporation from bankruptcy proceedings. Athey was a primary competitor
to shareholdersElgin's mechanical sweepers. Subsequent to the purchase, the group sold, or
otherwise recovered for cash, a substantial portion of the assets of Athey. All
sweepers are currently marketed under the Elgin brand name. Manufacture of all
Elgin brand sweepers is at the Elgin, Illinois facility. Elgin's parts
distribution center is also located in Elgin, Illinois.
RAVO, headquartered in the Netherlands, is a market leader in Europe for
high-quality compact self-propelled sweepers. RAVO sweepers, which utilize
vacuum technology for pick-up, range in size from the compact 3 Series (2.3
cubic meters) to the popular 5 series (4.3 cubic meters). RAVO products are sold
worldwide and have significant share throughout Europe, Asia, the Middle East
and Latin America. The products are primarily sold through a dealer network.
Vactor, located in Streator, Illinois, is the leading manufacturer of
municipal combination catch basin/sewer cleaning vacuum trucks. The acquisition
of Vactor provided a significant expansion of municipal equipment and enhanced
the domestic and international dealer networks of both Elgin and Vactor. Guzzler
is a leader in industrial vacuum loaders that clean up industrial waste or
recover and recycle valuable raw materials. Products are designed to vacuum a
full spectrum of materials - from solids and dry bulk powders to liquids,
slurries and thick sludge. In late 2000, the Environmental Products Group
consolidated production of its Guzzler industrial vacuum products from
Birmingham, Alabama into its Streator, Illinois manufacturing facilities to take
advantage of manufacturing efficiencies and technology synergies.
Jetstream of Houston, ("Jetstream"), acquired in August 1998, is a
Houston-based manufacturer of high pressure waterblast equipment and accessories
for commercial and industrial cleaning and maintenance operations with pressures
from 6,000 psi to 40,000 psi. This acquisition provided significant growth
opportunities in existing Jetstream markets as well as strong customer base
synergies for cross-selling to the industrial vacuum loader (Guzzler) contractor
customers.
In March 2000, the group acquired the Vaxjet patented closed-loop surface
cleaner. This product utilizes waterblast technology to remove oil, dirt and
other accumulations from various surfaces while vacuuming, filtering and
recycling the wash water. This patented technology incorporates several of the
Environmental Products Group's existing technologies including high-pressure
water and vacuum technology. The market is still emerging and appears to be
regulation driven, but could be significant as regulations are enforced. Vaxjet
products are manufactured in the group's Streator, Illinois facilities.
In September of 2002 the group acquired Leach Company of Oshkosh, WI, a
leading manufacturer of rear loading refuse collection bodies. Since first
revolutionizing the industry in 1959, Leach engineering has earned a reputation
for developing new products, features and enhancements. Their market strength is
primarily in the government and municipal markets. In addition, Leach markets
via a similar dealer channel as Elgin and Vactor and therefore presents
significant opportunities to expand and strengthen the worldwide Environmental
Products Group dealer network.
Wittke, a market focused manufacturer of dynamic truck mounted equipment and
parts located in Medicine Hat, Alberta, Canada was acquired in October of 2002,
complimenting the Leach acquisition. Wittke brand products include front load,
side load and automated side load refuse truck bodies. Wittke sold direct to
customers at the time of the acquisition, is particularly strong in the private
contractors and large waste hauling company market segments. A parts
manufacturing facility in Kelowna, B.C., Canada, was acquired along with the
main manufacturing plant in Medicine Hat.
All of the Environmental Products Group companies also have significant
manufacturing, marketing and sales efforts in accessories and replacement parts
for their products.
Some products and components thereof are not manufactured by the group but
are purchased for incorporation with products of the group's manufacture.
The group competes with several U.S. and non-U.S. manufacturers. Due to the
diversity of products offered, no meaningful estimate of either the number of
competitors or the group's relative position within the global market can be
made, although the group does believe it is a major supplier within these
product lines.
At December 31, 2002, Environmental Products Group backlog was $84.1 million
compared to $68.6 million at December 31, 2001. A substantial majority of the
orders in the backlog at December 31, 2002 are reasonably expected to be filled
within the current fiscal year.
Fire Rescue Group
The Fire Rescue Group manufactures fire/emergency apparatus, rescue vehicles
and aerial access platforms under the following brand names: Emergency One
(E-One), Bronto Skylift, Saulsbury, Superior and Plastisol. The group's products
are manufactured in its facilities located in Ocala, Florida; Preble, New York;
Red Deer, Alberta; Tampere and Pori, Finland; and Stellendam and Wanroij,
Netherlands.
E-One is a leading brand of fire rescue vehicles including pumpers, tankers,
aerial ladder trucks, custom chassis, and airport rescue and fire fighting
vehicles (each of aluminum construction for rust-free operation and energy
efficiency). E-One products are marketed and sold throughout the U.S. and the
world. A full range of Superior brand truck bodies are manufactured and
distributed primarily for the year endedCanadian market and U.S. wildlands markets.
Superior is the leading brand of fire/emergency apparatus in Canada.
Headquartered in Tampere, Finland, Bronto manufactures vehicle-mounted
aerial access platforms. Bronto is the leading manufacturer of such platforms
for fire rescue markets in the world and a leading manufacturer of heavy-duty
industrial platforms.
In January 1998, the Registrant acquired Saulsbury Fire Equipment Corp., the
leading manufacturer of stainless steel-bodied fire trucks and rescue vehicles
in the United States. The Saulsbury brand of steel-bodied products complements
the E-One brand of aluminum-bodied fire apparatus and custom fire chassis. The
acquisition of Saulsbury Fire provided the group with additional distribution, a
service center in the northeast United States and additional manufacturing
capacity for aluminum-bodied trucks in the U.S.
In October 2001, the Registrant acquired a majority interest in Plastisol
Holdings B.V., located in the Netherlands. Plastisol is a small manufacturer of
cabs and bodies for fire apparatus using glass-fiber reinforced polyester.
All of the Fire Rescue Group businesses also sell accessories and
replacement parts for their products.
Some products and components thereof are not manufactured by the group but
are purchased for incorporation with products of the group's manufacture.
The majority of Fire Rescue Group sales are made primarily to municipal
customers, volunteer fire departments and government customers both in U.S. and
non-U.S. markets.
The group competes with several U.S. and non-U.S. manufacturers and due to
the diversity of products offered, no meaningful estimate of either the number
of competitors or the group's relative position within the global market can be
made, although the group does believe it is a major supplier within these
product lines. The group competes with numerous non-U.S. manufacturers,
principally in non-U.S. markets.
At December 31, 19942002, Fire Rescue Group backlog was $282.2 million compared
to $241.2 million at December 31, 2001. A substantial majority of the orders in
the backlog at December 31, 2002 are incorporated herein by reference.reasonably expected to be filled within the
current fiscal year.
Safety Products Group
Significant subsidiaries or operations of the Safety Products Group (previously known asinclude
the Signal Group)Products Division, Aplicaciones Tecnologicas VAMA S.A. (VAMA), Victor
Industries Ltd. (Victor), Pauluhn Electric Mfg. Co., Justrite Manufacturing
Company (Justrite), and Federal APD. Virtually all of these businesses have the
leading position in their respective domestic markets. The group also includes a
number of other business units, most of which have been acquired within the past
five years and which are described later below.
The group's products manufactured by Registrantprincipally consist of: (1)emergency vehicular signaling,
industrial signaling and lighting, outdoor warning systems, hazardous liquid
containment products and parking revenue and control systems.
Emergency vehicular signaling includes a variety of visual and audible
warning, signaling and communications devices sold to police, fire, medical and
other emergency agencies and departments, utilities and municipal services
departments, vehicle towing and oversized trucking services firms. Products
primarily include vehicle warning lights, sirens and auxiliary lights.
Industrial signaling and lighting includes a variety of visual and audible
warning, signaling and communications devices used by private
industry, federal, state and local governments, building
contractors, police, fire and medical fleets, utilities and civil
defense; (2) safety containment products for handling and storing
hazardous materials used by a wide varietybroad range of
industrial and
laboratory customers as well as military agencieshazardous area lighting and municipal,
statecommunications
products used by mines, petrochemical plants, offshore oil platforms and federal governments; and (3) parking, revenue control,
and access control equipment and systems for parking facilities,
commercial businesses, bridge and pier installation and residential
developments.
The visual and audible warning and signaling devicesother
hazardous industrial sites. Products include
emergency vehicle warning lights, electromechanical and electronic
vehicle sirens and industrial signal lights, sirens,
horns, bells and solid statesolid-state audible signals, audio/visual emergency warning,
intercom and evacuation systems, including weatherspecialized area lights, control ballasts,
connectors, and microprocessor-based public address and multi-party paging
systems.
Outdoor warning systems are primarily sold to city, state and federal
emergency preparedness agencies, military agencies and departments, nuclear
power plantplants and large industrial facilities. Products include outdoor emergency
warning and evacuation systems to provide notification systemsof natural disaster and
fire alarm system panels and
devices.
In May 1994, the Registrant acquired the principal operating
assets and assumed the principal operating liabilities of Justrite
Manufacturing Company for cash. Justrite is an Illinois-based
manufacturer of safety equipment for the storage, transfer, use and
disposal of flammable and hazardous materials.
The safetyother emergency situations.
Hazardous liquid containment products offered by Justrite include safety cabinets for flammables
and corrosives; safety and dispenser cans; waste receptacles and disposal cans;
spill control pallets and overpacks; and hazardous material storage buildings,
lockers, pallets and platforms.
These products are designed in accordance
with various regulatory codes and standards, and meet agency
approvals such as FM and UL.
Parking, revenue control, and access control equipment and systems include
parking and security gates, card access readers, ticket issuing devices, coin
and token units, fee computers, automatic paystations, various forms of
electronic control units and personal computer-based revenue and access control
systems.
During the five-year period ending December 31, 2002, the following
businesses were acquired and became part of the Safety Products Group:
Principal
Entity Headquarters Acquired Principal
Products/Services
Millbank England January 1999 Commercial and
industrial
communications systems
Atkinson Dynamics Illinois August 1998 Industrial intercoms,
communications systems
Stinger Spike California September 1998 Tire deflation products
for the law enforcement
industry
Citicomp Brazil October 1998 Parking equipment -
Brazil
NRL Corp. Canada November 1998 Explosion-proof
lighting for land based
oil and gas rigs
Extec Ltd. England December 1998 Explosion-proof
telephone housing
Warning and signaling products, which account for the principal portion of
the group's business, are marketed to both industrial and governmental users.
Many of the group's products are designed in accordance with various regulatory
codes and standards, and meet agency approvals such as Factory Mutual (FM) and
Underwriters Laboratory (UL). Products are sold to industrial customers through
manufacturers' representatives who sell to approximately 1,4001,500 wholesalers.
Products are also sold to governmental customers through more than 900 active
independent distributors as well as through original equipment manufacturers and
direct sales. International sales are made through the Registrant'sgroup's independent
foreign distributors or on a direct basis.
Because of the large number of Registrant'sthe group's products, Registrantthe group competes with
a variety of manufacturers and suppliers and encounters varying competitive
conditions among its different products and encounters different classes of customers.
Because of the variety of such products and customers, no meaningful estimate of
either the total number of competitors or Registrant'sthe group's overall competitive
position within the global market can be made. Generally, competition is intense
as to all of Registrant'sthe group's products and, as to most such products, is based on
price, including competitive bidding, on
product reputation and performance, and
on product servicing.
Although some competitors in certain product lines are larger than
Registrant, the Registrant believes it is the leading supplier of
particular products.
In May 1992, the Registrant acquired all of the outstanding
shares of Aplicaciones Tecnologicas VAMA S.L. for cash and an
earnout to be based upon future profitability of the company for a
five-year period. VAMA is a leading European manufacturer of
emergency vehicular signaling products located in Barcelona, Spain.
The acquisition accelerates the Safety Products Group's strategic
objective of increasing international market penetration,
particularly in Europe.
The backlogs of orders of the Safety Products Group products believed to be firm at December 31,
19942002 and 19932001 were $14.0$44.3 million and $9.7$31.6 million, respectively. The backlogs at December
31, 1994 included approximately $2.4 million of backlog
attributable to Justrite, which was acquired in May 1994. Almost all of
the backlogsbacklog of orders at December 31, 1994 are reasonably
expected to be filled within the current fiscal year.
Sign Group
The Sign Group, operating principally under the name "Federal
Sign" designs, engineers, manufactures, installs and maintains
illuminated and non-illuminated sign displays, for both sale and
lease. Registrant additionally provides sign repair services and
also enters into maintenance service contracts, usually over three
to five-year periods, for signs it manufactures as well as for
signs produced by other manufacturers. Its operations are oriented
to custom designing and engineering of commercial and industrial
signs or groups of signs for its customers.
The sale and lease of signs and the sale of maintenance
contracts are conducted primarily through Registrant's direct sale
organization which operates from its twenty-three principal sales
and manufacturing facilities located strategically throughout the
continental U.S. Customers for sign products and services consist
of local commercial businesses, as well as major national and
multi-national companies.
The Sign Group's markets improved during 1994 with growth coming
from many of its national and multi-national customers, as well as
growth in the casino gaming industry. This growth, combined with
the results of the aggressive restructuring programs implemented
over the last few years, resulted in more than tripling profits in
1994 versus 1993.
A large number of Registrant's displays are leased to customers
for terms of typically three to five years with both the lease and
the maintenance portions of many such contracts then renewed for
successive periods.
Registrant is nationally a principal producer of custom-designed
signs, but has numerous competitors (estimated at about 3,500 in
total), most of whom are localized in their operations.
Competition for sign products and services is intense and
competitive factors consist largely of prices, terms, aesthetic and
design considerations, and maintenance services. In some
instances, smaller and more localized operations may enjoy some
cost advantages which may permit lower pricing for particular
displays. However, Registrant's reputation for creative design,
quality manufacture and complete nationwide service together with
its financial ability to maintain customer leasing programs and to
undertake large project commitments in many cases offset
competitors' price advantages.
Total backlog at December 31, 1994, applicable to sign products
and services was approximately $57.0 million compared to
approximately $54.2 million at December 31, 1993. A significant
part of Registrant's sign products and services backlog relates to
sign maintenance contracts since such contracts are usually
performed over long periods of time. At December 31, 1994, the
Sign Group had a backlog of approximately $39.8 million compared to
approximately $41.5 million at December 31, 1993, represented by
in-service sign maintenance contracts. With the exception of the
sign maintenance contracts, most of the backlog orders at December
31, 19942002 are reasonably expected to be filled
within the current fiscal year.
Tool Group
The Tool Group manufactures a broad range of carbide and superhard cutting
tools, mold-tooling products are produced by the Registrant's
wholly-owned subsidiaries including: Dayton Progress Corporation,
Schneider Stanznormalien GmbH, acquiredand punches and other die components used in 1992,metal
stamping and metal cutting operations.
The cutting tool operations manufacture consumable carbide and superhard
insert tooling for cutoff and deep grooving metal cutting applications. These
operations include Manchester Tool Company and Clapp Dico Corporation,Corporation. In July
1999, the group acquired in 1992, Bassett RotaryClapp & Haney Tool Company, the leading U.S.
manufacturer and Jamestown Punchmarketer of polycrystalline diamond and Tooling, Inc.
Dayton Progress Corporation manufacturescubic boron nitride
consumable tooling. The group's smaller Dico-brand superhard cutting-tool
operations were consolidated into the larger, more efficient Whitehouse, Ohio
facilities in October 2000. Together these two combined operations are now
referred to as Clapp Dico.
In January 2001, the group acquired On Time Machining Company (OTM), a
manufacturer of indexable insert drills and purchasesmilling cutters for use in metal
cutting applications. The group also made one small product line acquisition
within the year.
In March 2000, the Tool Group acquired P.C.S. Company (P.C.S.) located in
Fraser, Michigan. P.C.S. provides precision tooling, ejector pins, core pins,
sleeves and accessories to the growing plastic injection mold industry. By
combining selective marketing and sales functions with the die components
business, the P.C.S. acquisition enhances future growth prospects for both
product segments.
The die components and precision tooling operations manufacture and purchase
for resale an extensive variety of consumable standard and special die
components for the metal stamping industry. These components consist of piercing
punches, matched die matrixes, punch holders or retainers, can and body punches,
precision ground high alloy parts and many other products related to a metal
stamper's needs. RegistrantThe die components and precision tooling operations also
producesproduce a large variety of consumable precision metal products for customers'
nonstamping needs, including special heat exchanger tools, beverage container
tools, powder compacting unitstools and molding components. In March 1992,Subsidiaries of the die
components and precision tooling operations include: Dayton Progress
Corporation, acquired for cash the
assets of Schneider Stanznormalien GmbH, a German manufacturer of
precision punch and die components. This acquisition gives Dayton Progress manufacturing capabilities on the European continentGmbH, Jamestown Precision Tooling, Inc., Technical
Tooling, Inc. (TTI) and
provides greater access to European markets.
In October 1991, Dayton Progress Corporation acquired for cash
and stock all of the outstanding shares of Container Tooling
Corporation. Container Tool manufactures and distributes body
punch tooling used in the production of aluminum and steel beverage
cans. The product complements Dayton Progress' tab-top tooling
product line. In October 1994 the Container Tool operations were
relocated to Dayton Progress' facilities in Dayton, Ohio.
Manchester Tool Company manufactures consumable carbide insert
tooling for cutoff and deep grooving metal cutting applications.
In November 1992, Manchester Tool Company acquired for cash all
of the outstanding shares of Dico Corporation, a manufacturer of
polycrystalline diamond and cubic boron nitride cutting tools.
This product line complements Manchester Tool's carbide insert
products and allows for entry into new market niches within general
business areas already served.
Bassett Rotary Tool Company is a manufacturer of consumable
carbide cutting tools. Its products are medium to high precision
in their manufacture and at times are quite complex in their
configuration. The products represent a narrow band of the much
broader cutting tool industry and require a high level of
manufacturing skill.
Jamestown Punch and Tooling, Inc. manufactures an extensive line
of consumable special die components for the metal stamping and
plastic molding industries in addition to a variety of precision
ground high alloy parts. Sales are made on both a direct basis and
through a limited distributor organization.SAS.
Because of the nature of and market for the Registrant'sgroup's products, competition is
greatkeen at both domestic and international levels. Many customers have some ability
to produce the productcertain products themselves, but at a cost disadvantage. Major market
emphasis is placed on quality of product, delivery and level of service.
Tool Group products are laborcapital intensive with the only significant outside
cost being the purchase of the tool steel, carbide, cubic boron nitride and
polycrystalline diamond raw material, as well as items necessary for manufacturing.
Inventories are maintained to assure prompt service to the customer with the
average order for standard tools filled in less than one week for domestic
shipments and within two weeks for international shipments.
Tool Group customers include metal and plastic fabricators and tool and die
shops throughout the world. Because of the nature of the products, volume
depends mainly on repeat orders from customers numbering in the thousands. These
products are used in the manufacturing process of a broad range of items such as
automobiles, appliances, construction products, electrical motors, switches and
components and a wide variety of other household and industrial goods.
Almost all business is done with private industry.
Registrant'sThe group's products are marketed in the United States, Japan
and Europemany
international markets, principally through industrial distributors.
ForeignForeign-owned manufacturing, facilities, as well as sales and distribution offices,facilities are located in
Weston,Woodbridge, Ontario; Sagamihara,Tokyo, Japan; Kenilworth,Warwickshire, England; Alcobaca, Portugal;
Oberursel, Germany; and Oberursel, Germany. Sales to nondomestic
customers are made through five wholly-owned subsidiaries: Dayton
Progress Canada, Ltd., Dayton Progress International Corporation,
Dayton Progress (UK) Ltd., Nippon Dayton Progress K.K. and
Schneider Stanznormalien GmbH.
Order backlogs of the Tool Group as of December 31, 1994 and
December 31, 1993 were $9.5 million and $7.5 million, respectively.
Almost all of the backlogs of orders at December 31, 1994 are
expected to be filled within the current fiscal year.
Vehicle GroupMeaux, France.
The Vehicle Group is composed of Emergency One, Inc., Superior
Emergency Vehicles, Ltd., acquired in 1991, Elgin Sweeper Company,
Vactor Manufacturing, Inc., acquired in 1994, Guzzler
Manufacturing, Inc., acquired in 1993, and Ravo International,
acquired in 1990.
Emergency One, Inc. is a leading manufacturer of custom-designed
ambulances, fire trucks and rescue vehicles including four and
six-wheel drive rescue trucks, tankers, pumpers, aerial ladder
trucks, and airport rescue and fire fighting vehicles (each of
aluminum construction for rust-free operation and energy
efficiency).
In December 1991, Emergency One acquired for cash all of the
outstanding shares of Frontline Corporation, a manufacturer and
distributor of ambulances, rescue trucks and mobile communication
vehicles. The acquisition of Frontline Corporation complemented
Emergency One's product line and enabled Emergency One to provide
a complete product line of fire trucks, fire apparatus, emergency
support and ambulance vehicles for distribution through Emergency
One's domestic and international dealer network. During 1993, the
company's ambulance operations were relocated to Emergency One's
facilities in Ocala, Florida and the mobile communications vehicles
product line was sold. The company was merged into Emergency One
in January 1994.
In December 1991, Emergency One acquired for cash, Superior
Emergency Vehicles, Ltd., a manufacturer and distributor of a full
range of fire truck bodies primarily for the Canadian market. In
addition to increased manufacturing capacity, the acquisition of
Superior Emergency Vehicles, Ltd. provides greater access to the
Canadian market.
Elgin Sweeper Company is the leading manufacturer in the United
States of self-propelled street cleaning vehicles. Utilizing three
basic cleaning methods (mechanical sweeping, vacuuming and
recirculating air), Elgin's products are primarily designed for
large-scale cleaning of curbed streets and other paved surfaces.
In June 1994, the Registrant acquired the principal operating
assets and assumed the principal operating liabilities of Peabody
Myers Corporation ("Vactor") for cash. Vactor Manufacturing, Inc.
is an Illinois-based manufacturer of municipal combination catch
basin/sewer cleaning vacuum trucks. This acquisition provides a
significant expansion of the Registrant's offering of municipal
equipment and enhances the domestic and international dealer
networks of both Elgin Sweeper and Vactor.
In March 1993, Elgin Sweeper Company acquired, principally for
cash, all of the outstanding shares of Guzzler Manufacturing, Inc.
Guzzler is an Alabama-based manufacturer and marketer of waste
removal vehicles, using vacuum technology, for worldwide industrial
and environmental markets. The acquisition of Guzzler
Manufacturing, Inc. complements Elgin Sweeper Company's product
distribution and provides for increased exposure to the industrial
marketplace for both Elgin and Guzzler.
In December 1990, the Registrant, through Federal Signal Europe
BV, acquired all of the outstanding shares of Van Raaij Holdings BV
(which, along with its subsidiaries, is referred to herein as Ravo
International), a Netherlands-based street sweeper manufacturer,
for cash and an earnout to be based upon future profitability of
the company for a five-year period. Ravo International is a
leading European manufacturer and marketer of self-propelled street
and sewer cleaning vehicles. Utilizing the vacuuming cleaning
method, Ravo's products are primarily designed for cleaning of
curbed streets and other paved surfaces. Both Ravo International
and Elgin Sweeper Company also sell accessories and replacement
parts for their sweepers. Ravo International also provides after-
market service and support for its products in the Netherlands.
Some products and components thereof are not manufactured by
Registrant but are purchased for incorporation with products of
Registrant's manufacture.
A majority of Vehicle Group sales are made to domestic and
overseas municipalities and other governmental units. Industrial
vacuum loader vehicles produced by Guzzler are principally sold to
commercial and industrial customers. Worldwide sales are
principally conducted by domestic and international dealers, in
most areas, with some sales being made on a direct-to-user basis.
Registrantgroup competes with several domesticU.S. and foreignnon-U.S. manufacturers and due to
the diversity of products offered, no meaningful estimate of either the number
of competitors or Registrant'sthe group's relative position within the global market can be
made, although Registrantthe group does believe it is a major supplier within these
product lines. RegistrantThe group competes with numerous foreignnon-U.S. manufacturers,
principally in internationalnon-U.S. markets.
AtThe order backlogs of the Tool Group as of December 31, 1994,2002 and December
31, 2001 were $11.4 million and $10.7 million, respectively. The entire backlog
of orders at December 31, 2002 is expected to be filled within the Vehiclecurrent
fiscal year.
Sign Group
backlogs were $180.5The Sign Group manufactures and markets outdoor signs, neon and displays.
The group additionally provides repair services and also enters into multi-year
maintenance service contracts for signs and other electrical equipment such as
parking lot lights and message boards. Its operations are oriented to custom
designing and engineering of commercial and industrial signs or groups of signs
for its customers.
The sale and lease of signs and the sale of maintenance contracts are
conducted primarily through the group's direct sales organization that operates
from sales and manufacturing facilities located strategically throughout the
continental U.S. Customers for sign products and services consist primarily of
multi-location commercial businesses and large commercial and institutional
developments.
Some of the group's displays are leased to customers for terms of typically
three to five years, with both the lease and the maintenance portions of many
such contracts then renewed for successive periods.
The group is nationally a principal producer of high-end custom and
custom-quantity signs. The group's marketing strategies focus on market segments
to which it can provide a unique set of services. The group has multiple
regional and national competitors. Competition for sign products and services is
intense and competitive factors are largely quality, price, project and program
management capabilities, aesthetic and design considerations and
lease/maintenance services.
Total backlog at December 31, 2002, applicable to sign products and services
was approximately $38.1 million compared to $150.3approximately $45.8 million at
December 31, 1993. The
backlogs2001. A significant part of the group's sign products and services
backlog relates to sign maintenance contracts that are usually performed over
three to five years. At December 31, 2002, the Sign Group had a backlog of
in-service sign maintenance contracts of approximately $34.0 million compared to
approximately $37.5 million at December 31, 1994, included approximately $10.2 million
of backlog attributable to Vactor Manufacturing, Inc., which was
acquired in June 1994. A substantial majority2001. With the exception of the orders insign
maintenance contracts, most of the backlogsbacklog orders at December 31, 19942002 are
reasonably expected to be filled within the current fiscal year.
Approximately $24.0 millionDuring 2000, the Registrant announced it is seeking buyers for the Sign
Group due to the Registrant focusing on growth strategies for its other groups.
The results of the backlogs at December 31, 1994 and $34.3 million ofSign Group are reported as discontinued operations in the
backlogs at
December 31, 1993 represent the funded portion of a subcontract to
build P-23 airport rescue and fire fighting vehicles for the U.S.
Air Force. The majority of the $24.0 million backlog at December
31, 1994 is expected to be produced and shipped during 1995.Registrant's consolidated financial statements.
Additional Information
The Registrant's sources and availability of materials and components are
not materially dependent upon either a single vendor or very few vendors.
The Registrant owns a number of patents and possesses rights under others to
which it attaches importance, but does not believe that its business as a whole
is materially dependent upon any such patents or rights. The Registrant also
owns a number of trademarks whichthat it believes are important in connection with
the identification of its products and associated goodwill with customers, but
no material part of the Registrant's business is dependent on such trademarks.
The Registrant's business is not materially dependent upon research
activities relating to the development of new products or services or the
improvement of existing products and services, but such activities are of
importance as to some of the Registrant's products. Expenditures for research
and development by the Registrant were approximately $7.0$26.5 million in 1994, $5.62002,
$20.0 million in 19932001 and $5.2$18.8 million in 1992.2000.
Note NM - Segment and Related Information, presented in the annual reportRegistrant's
Annual Report to shareholdersShareholders for the year ended December 31, 1994,2002, contains
information concerning the Registrant's foreign sales, export sales and
operations by geographic area, and is incorporated herein by reference.
Certain of the Registrant's businesses are susceptible to the influences of
seasonal buying or delivery patterns. The Registrant's businesses which tend to
have lower sales in the first calendar quarter compared to other quarters as a
result of these influences are signage, street sweeping, outdoor warning, other municipal
emergency signal products, and parking systems, aerial access platform manufacturing
operations.operations and signage.
No material part of the business of the Registrant is dependent either upon
a single customer or very few customers. The Registrant is in substantial
compliance with federal, state and local provisions whichthat have been enacted or
adopted regulating the discharge of materials into the environment, or otherwise
relating to the protection of the environment. These provisions have had no
material adverse impact upon capital expenditures, earnings or competitive
position of the Registrant and its subsidiaries. The Registrant employed 5,243over
7,400 people in ongoing businesses at the close of 1994.2002. The Registrant believes
relations with its employees have been satisfactory.good.
Available Information
The Registrant makes its annual reports on Form 10-K, quarterly reports on
Form 10-Q, current reports on Form 8-K and amendments to those reports
available, free of charge, through its Internet website
(http://www.federalsignal.com) as soon as reasonably practical after it
electronically files or furnishes such materials to the Securities and Exchange
Commission. All of the Registrant's filings may be read or copied at the SEC's
Public Reference Room at 450 Fifth Street, NW, Washington, DC 20549. Information
on the operation of the Public Filing Room can be obtained by calling the SEC at
1-800-SEC-0330. The SEC maintains an Internet website (http://www.sec.gov) that
contains reports, proxy and information statements and other information
regarding issuers that file electronically.
Item 2. Properties.
As of March 1, 1995,December 31, 2002, the Registrant utilized twenty-seventhirty-eight principal
manufacturing plants located primarily throughout North America, as well as sevensixteen in
Europe, one in South Africa, one in South America, and one in the Far East.
In addition, there were thirty-six sales and service/warehouse sites,
with thirty-three being domestically based and three located
overseas. The majority of the manufacturing plants are owned,
whereas all the sales and service/warehouse sites are leased.
In total, the Registrant devoted approximately 1,464,0002,558,000 square feet to
manufacturing and 890,0001,222,000 square feet to service, warehousing and office space
as of March 1, 1995.December 31, 2002. Of the total square footage, approximately 31%30% is
devoted to the Safety Products Group, 14% to the Sign Group, 11% to the Tool Group, and 44%23% to the Vehicle Group. Not included inFire
Rescue Group, 30% to the manufacturing square footage is
approximately 21,000 square feet of unutilized manufacturing space
that resulted from the rearrangement of the Registrant's
manufacturing operations inEnvironmental Products Group and 6% to the Sign and Tool groups. The majority
of this space is presently being marketed for lease to
nonaffiliates.Group.
Approximately 66% of the total square footage is owned by the Registrant, with
the remaining 34% being leased.
All of the Registrant's properties, as well as the related machinery and
equipment, are considered to be well-maintained, suitable and adequate for their
intended purposes. In the aggregate, these facilities are of sufficient capacity
for the Registrant's current business needs.
Capital expenditures for the years ended December 31, 1994,
1993, and 1992 were $11.1 million, $10.1 million, and $8.8 million,
respectively. Registrant anticipates total capital expenditures in
1995 will be approximately 30% to 50% greater than 1994 amounts.
Item 3. Legal Proceedings.
The Registrant is subject to various claims, other pending and possible
legal actions for product liability and other damages and other matters arising
out of the conduct of the Registrant's business. With the exception of the matter discussed below, theThe Registrant believes, based
on current knowledge and after consultation with counsel, that the outcome of
such claims and actions will not have a material adverse effect on the
Registrant's consolidated financial position or the results of operations.
On May 3, 1993, a Texas federal court jury rendered a verdict
of $17,745,000 against Federal Sign, a division of the Registrant,
for alleged violation of the Texas Deceptive Trade Practices Act
and misrepresentations to Duravision, Inc. and Manufacturers
Product Research Group of North America, Inc. in connection with a
1988 research and development project for indoor advertising signs.
The Registrant believeshas been sued by firefighters in Chicago seeking damages and
claiming that exposure to the court erroneously excluded important
evidenceRegistrant's sirens has impaired their hearing and
that the verdict was againstsirens are therefore defective. There were sixteen cases filed during
the weightperiod 1999-2002, involving a total of 1,004 plaintiffs pending in the
evidence. Both inside and outside counsel that initially handled
the case opined at the timeCircuit Court of the verdict that the likelihood of
a substantially unfavorable resultCook County, Illinois. The plaintiff's attorneys have
threatened to the Registrant on appeal was
remote. Trial counsel has turned the case over to new appellate
counsel and has stated they cannot currently give an opinion on the
appeal because they are no longer handling the case. Appellate
counsel now handling the appeal of the case has not issued an
opinion on its outcome. However,bring more suits if the Registrant loses its
appeal of this case, there would be a charge to earnings for this
$17,745,000 verdict, plus interest and attorney fees of up to
$11,000,000. On the other hand, there would be no such charges to
earnings for a decision reversing the original verdict or the
appellate court could issue a decision somewhere in between.
Depending on the outcome of this matter, an adverse decision may
have a material effect on results of operations and cash flows in
the periods that the appellate court decision is made and required
payments are made.does not settle these cases.
The Registrant believes that the ultimate
resolution of this contingency, however, will notthese product liability suits have a material
effect on its financial condition nor its results of operations or
cash flows for periods subsequent to the appellate court decisionno merit and
payments required as a result of such decision.that sirens are necessary in emergency situations and save lives. The Registrant
cannot reasonably estimatesuccessfully defended approximately 41 similar cases in Philadelphia in 1999
after a series of unanimous jury verdicts in favor of the ultimate amount of a judgment, if
any, or interest and attorney fees, if any, which may result from
an adverse appellate court decision. Accordingly, the Registrant
has not recorded any accruals for potential losses which may result
from an adverse judgment. In the event of an adverse decision, the
Registrant intends to aggressively pursue a substantial recovery
from its original trial counsel in this matter.Registrant.
Item 4. Submission of Matters to a Vote of Security Holders.
No matters were submitted to a vote of security holders through the
solicitation of proxies or otherwise during the three months ended December 31,
1994.2002.
PART II
Item 5. Market for the Registrant's Common Stock and Related
Security Holder Matters.
Federal Signal Corporation's Common Stock is listed and traded on the New
York Stock Exchange under the symbol FSS. PerMarket price range and dividend per
share data listed in Note O -SelectedS - Selected Quarterly Data (Unaudited) contained in
the 1994 annual reportAnnual Report to shareholdersShareholders for the years ended December 31, 2002 and 2001
is incorporated herein by reference. As of March 1, 1995,2003, there were 5,4033,716
holders of record of the Registrant's common stock.
Certain long-term debt agreements impose restrictions on the Registrant's
ability to pay cash dividends on its common stock. All of the retained earnings
at December 31, 1994,2002 were free of any restrictions.
Item 6. Selected Financial Data.
Selected Financial Data contained in the 1994 annual reportRegistrant's Annual Report to
shareholdersShareholders for the year ended December 31, 2002 is incorporated herein by
reference.
Item 7. Management's Discussion and Analysis of Financial Condition
and Results of Operations.
The Financial Review sections "Consolidated Results of
Operations," "Group Operations" and "Financial Position and Cash
Flow" contained in the 1994 annual reportRegistrant's Annual Report to
shareholders are
incorporated herein by reference.
Note M - Contingency, contained in the annual report to
shareholdersShareholders for the year ended December 31, 1994,2002 is incorporated herein by
reference.
Item 7a. Qualitative and Quantitative Disclosures About Market Risk.
The Financial Review caption "Market Risk Management" contained in the
Registrant's Annual Report to Shareholders for the year ended December 31, 2002
is incorporated herein by reference.
Item 8. Financial Statements and Supplementary Data.
The consolidated financial statements and accompanying footnotes of the
Registrant and the report of the independent auditors set forth in the
Registrant's 1994 annual reportAnnual Report to shareholdersShareholders for the year ended December 31, 2002
are incorporated herein by reference.
Item 9. Changes in and Disagreements with Accountants on Accounting
and Financial Disclosure.
None.
PART III
Item 10. Directors and Executive Officers of the Registrant.
The information under the caption "Election of Directors" contained in the
Registrant's Proxy Statement for the Annual Meeting of Shareholders to be held
on April 19, 199517, 2003 is incorporated herein by reference.
The following is a list of the Registrant's executive officers, their ages,
their business experience and their positions and offices as of March 1, 1995:2002:
Joseph J. Ross, age 49,57, was elected Chairman, President and Chief Executive
Officer in February 1990. Previously he served as
PresidentMr. Ross continues to serve in the capacities of
Chairman and Chief Executive Officer since December 1987 and as
Chief Operating Officer since July 1986.Officer.
John A. DeLeonardis, age 47,55, was elected Vice President-Taxes in January
1992.
He first joined the company as Director of TaxDuane A. Doerle, age 47, was elected Vice President-Corporate Development in
November 1986.
Henry L. Dykema,July 1996.
Stephanie K. Kushner, age 55, joined the Registrant47, was elected as Vice President and Chief
Financial Officer in January 1995. He replaced Charles
R. Campbell, ChiefFebruary 2002. Previously, Ms. Kushner was Vice President -
Treasury and Corporate Development for FMC Technologies in 2001, Vice President
and Treasurer for FMC Corporation from 1999-2001, and Director of Financial
Officer since 1985, who retired at the
endPlanning of 1994. Mr. Dykema was self-employedFMC Corporation from September 1993 to
December 1994 and served as Vice President-Finance and Chief
Financial Officer of Kennametal, Inc. from October 1989 to August
1993.
Robert W. Racic,1997-1999.
Karen N. Latham, age 46,43, was elected Vice President and Treasurer in
April 1984.December 2002. Previously, Ms. Latham spent ten years in corporate banking (1981
- - 1986 and 1987 - 1990 with Harris Bank and 1986 - 1987 with Citicorp) and seven
years in corporate senior financial roles. Specifically, she was Vice
President/Treasurer with Vigoro Corporation, and its successor organization, IMC
Global, Inc., from 1990 to 1997 and Vice President/Chief Financial Officer with
Florsheim Corporation in 1997. More recently, she was a Consultant from 1998 to
2001 with Egon Zehnder International, Inc. and a Senior Vice President from 2001
to 2002 with Coffou Partners, Inc.
Richard L. Ritz, age 41,49, was elected Vice President and Controller in
January 1991.
He was appointed Controller effective
November 1985.
Kim A. Wehrenberg, age 43,51, was elected Vice President, General Counsel and
Secretary effective October 1986.
These officers hold office until the next annual meeting of the Board of
Directors following their election and until their successors shall have been
elected and qualified.
There are no family relationships among any of the foregoing executive
officers.
Item 11. Executive Compensation.
The information contained under the caption "Executive Compensation" of the
Registrant's Proxy Statement for the Annual Meeting of Shareholders to be held
April 19, 199517, 2003 is incorporated herein by reference.
Item 12. Security Ownership of Certain Beneficial Owners and
Management.
The information contained under the captioncaptions "Security Ownership of Certain
Beneficial Owners" and "Equity Compensation Plan Information" of the
Registrant's Proxy Statement for the Annual Meeting of Shareholders to be held
April 19, 199517, 2003 is incorporated herein by reference.
Item 13. Certain Relationships and Related Transactions.
The information contained under the caption "Executive Compensation" of the
Registrant's Proxy Statement for the Annual Meeting of Shareholders to be held
April 19, 199517, 2003 is incorporated herein by reference.
Other Matters
The Registrant has two directors that qualify as "independent audit
committee financial experts", as defined by the Sarbanes-Oxley Act and
Securities and Exchange Commission, on its Audit Committee. These directors are
Mr. Charles R. Campbell, Chairman of the Audit Committee and Principal of The
Everest Group, and Ms. Joan E. Ryan, Senior Vice President and Chief Financial
Officer of SIRVA, Inc.
PART IV
Item 14. Controls and Procedures.
(a) Evaluation of Disclosure Controls and Procedures
As required by new Rule 13a-15 under the Securities Exchange Act of 1934,
within the 90 days prior to the date of this report, the Registrant
carried out an evaluation under the supervision and with the participation
of the Registrant's management, including the Chief Executive Officer
(CEO) and Chief Financial Officer (CFO), of the effectiveness of the
design and operation of the disclosure controls and procedures. Based upon
that evaluation, the management, including the CEO and CFO, concluded that
the disclosure controls and procedures were effective to ensure that
information required to be disclosed by the Registrant in the reports it
files or submits under the Exchange Act is recorded, processed, summarized
and reported, within the time periods specified in the Securities and
Exchange Commission's rules and forms. In connection with the new rules
and as a matter of practice, the Registrant continues to review and
document disclosure controls and procedures, including internal controls
and procedures for financial reporting. From time to time, the Registrant
may make changes aimed at enhancing the effectiveness of the controls and
to ensure that the systems evolve with the business. There have been no
significant changes in the internal controls or in other factors that
could significantly affect internal controls subsequent to the date the
Registrant carried out its evaluation.
(b) Changes in Internal Controls
None.
Item 15. Exhibits, Financial Statement Schedules and Reports on Form
8-K.
(a)1. Financial Statements
The following consolidated financial statements of Federal Signal
Corporation and Subsidiaries included in the 1994
annual report ofRegistrant's Annual Report to
Shareholders for the Registrant to its shareholdersyear ended December 31, 2002 are filed as a part of
this report and are incorporated by reference in Item 8:
Consolidated Balance Sheets -- December 31, 19942002 and 19932001
Consolidated Statements of Income -- Years ended December
31, 1994, 19932002, 2001 and 19922000
Consolidated Statements of Comprehensive Income -- Years
ended
December 31, 2002, 2001 and 2000
Consolidated Statements of Cash Flows -- Years ended December 31,
1994, 19932002, 2001 and 19922000
Notes to Consolidated Financial Statements
2. Financial Statement Schedules
The following consolidated financial statement schedule of Federal Signal
Corporation and Subsidiaries, for the three years ended December 31, 1994,2002
is filed as a part of this report in response to Item 14(d):
Schedule II -- Valuation and qualifying accounts
All other schedules for which provision is made in the applicable
accounting regulations of the Securities and Exchange Commission are not
required under the related instructions or are inapplicable, and
therefore, have been omitted.
3. Exhibits
3. a. Restated Certificate of Incorporation of the Registrant,
and Certificate of Amendment, filed as
Exhibit (3)(a) to the Registrant's Form 10-K for the year ended
December 31, 1991,1996 is incorporated herein by reference.
b. By-laws of the Registrant, filed as Exhibit (3)(b) to the
Registrant's Form 10-K for the year ended December 31, 1991,2000 is
incorporated herein by reference.
4. a. Rights Agreement dated 7/9/98, filed as Exhibit (4)(a) to the
Registrant's Form 10-K for the year ended December
31, 1993,8-A dated July 28, 1998 is incorporated herein by
reference.
b. The Registrant has no long-term debt agreements for which the
related outstanding debt exceeds 10% of consolidated total assets as
of December 31, 1994.2002. Copies of debt instruments for which the
related debt is less than 10% of consolidated total assets will be
furnished to the Commission upon request.
10. a. 198810.a. The amended 1996 Stock Benefit Plan, filed as Exhibit (10)(a) to the
Registrant's Form 10-K for the year ended December 31, 1991,1998 is
incorporated herein by reference.
b. Corporate Management Incentive Bonus Plan.Plan as incorporated
herein.
c. Subsidiaries, Division and Other Designated Profit
Centers Management Incentive Bonus Plan.
d. Supplemental Pension Plan, filed as Exhibit (10)(d)(c) to the
Registrant's Form 10-K for the year ended December 31, 1990,1995 is
incorporated herein by reference.
e.d. Executive Disability, Survivor and Retirement Plan, filed as Exhibit
(10)(e)(d) to the Registrant's Form 10-K for theyearthe year ended December
31, 1990,1995 is incorporated herein by reference.
f.e. Supplemental Savings and Investment Plan, filed as Exhibit (10)(f)
to the Registrant's Form 10-K for the year ended December 31, 1993
is incorporated herein by reference.
g.f. Employment Agreement with Joseph J. Ross.
h. Change of Control Agreement with Kim A. Wehrenberg.
i. Director Deferred Compensation Plan,Ross, filed as Exhibit (10)(j)(g)
to the Registrant's Form 10-K for the year ended December 31, 1992,1994
is incorporated herein by reference.
j. Director Retirement Plan,g. Pension Agreement with Stephanie K. Kushner as incorporated herein.
h. Employment Termination Agreement with Stephanie K. Kushner as
incorporated herein.
i. Change of Control Agreement with Kim A. Wehrenberg, filed as Exhibit
(10)(k)(h) to the Registrant's Form 10-K for the year ended December
31, 1992,1994 is incorporated herein by reference.
11. Computationj. Change of net income per common share
13. 1994 AnnualControl Agreement with Stephanie K. Kushner, filed as
Exhibit (10) (i) to the Registrant's Form 10-K for the year ended
December 31, 2001 is incorporated herein by reference.
k. Director Deferred Compensation Plan, filed as Exhibit (10)(h) to the
Registrant's Form 10-K for the year ended December 31, 1997 is
incorporated herein by reference.
l. Retirement Plan for Outside Directors (applies only to individuals
who became a director prior to October 9, 1997), filed as Exhibit
(10)(I) to the Registrant's Form 10-K for the year ended December
31, 1997 is incorporated herein by reference.
m. Broad Based Stock Option Plan, filed as Exhibit (99) to the
Registrant's Form S-8 dated January 31, 2002 is incorporated herein
by reference. This plan was terminated on July 18, 2002, and no
shares were issued pursuant to this plan.
13.Annual Report to Shareholders of Federal Signal
Corporation.for the year ended December 31, 2002.
Such report, except for those portions thereof whichthat are expressly
incorporated by reference in this Form 10-K, is furnished for the
information of the Commission only and is not to be deemed "filed" as
part of this filing.
21. Subsidiaries21.Subsidiaries of the Registrant
23. Consent23.Consent of Independent Auditors
27.99.a. CEO Certification of Periodic Report under Section 906 of
Sarbanes-Oxley Act.
b. CFO Certification of Periodic Report under Section 906 of
Sarbanes-Oxley Act.
c. Code of Ethics for CEO and Senior Financial Data ScheduleOfficers.
(b) Reports on Form 8-K
No reports on Form 8-K were filed for the three months ended December 31, 1994.2002
None.
(c) and (d)
The response to this portion of Item 14 is being submitted as a separate
section of this report.
Other Matters
For the purposes of complying with the amendments to the rules governing
Form S-3 and Form S-8 (effective July 13, 1990) under the Securities Act of
1933, the undersigned, the Registrant, hereby undertakes as follows, which
undertaking shall be incorporated by reference into the Registrant's
Registration Statements on Form S-3 Nos. 333-71886, 333-76372 and 333-98993
dated October 19, 2001, January 7, 2002 and August 30, 2002, respectively and
Form S-8 Nos. 33-12876, 33-
22311,33-22311, 33-38494, 33-41721, 33-49476, 33-14251,
33-89509 and 33-49476,333-81798 dated April 14, 1987, June 26, 1988, December 28, 1990,
July 15, 1991, and June 9, 1992, October 16, 1996, October 22, 1999, and January 31,
2002, respectively:
Insofar as indemnification for liabilities arising under the Securities
Act of 1933 may be permitted to directors, officers and controlling persons of
the Registrant pursuant to the foregoing provisions, or otherwise, the
Registrant has been advised that in the opinion of the Securities and Exchange
Commission such indemnification is against public policy as expressed in the Act
and is, therefore, unenforceable. In the event that a claim for indemnification
against such liabilities (other than the payment by the Registrant of expenses
incurred or paid by a director, officer or controlling person of the Registrant
in the successful defense of any action, suit or proceeding) is asserted by such
director, officer or controlling person in connection with the securities being
registered, the Registrant will, unless in the opinion of its counsel the matter
has been settled by controlling precedent, submit to a court of appropriate
jurisdiction the question whether such indemnification by it is against public
policy as expressed in the Act and will be governed by the final adjudication of
such issue.
Signatures
Pursuant to the requirements of Section 13 or 15 (d) 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.
FEDERAL SIGNAL CORPORATION
By: /s/ Joseph J. Ross
March 20, 1995Joseph J. Ross
Chairman, President, Chief Executive
Officer and Director
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below, onas of March 20, 1995,27, 2003, by the following persons on behalf
of the Registrant and in the capacities indicated.
Henry L. Dykema Walter/s/ Stephanie K. Kushner /s/ Charles R. PeirsonCampbell
Stephanie K. Kushner Charles R. Campbell
Vice President and Chief Director
Financial Officer
/s/ Richard L. Ritz J. Patrick Lannan, Jr./s/ James C. Janning
Richard L. Ritz James C. Janning
Vice President and Controller Director
/s/ Paul W. Jones
Paul W. Jones
Director
/s/ James A. Lovell, Jr.
James A. Lovell, Jr.
Director
/s/ Walden W. O'Dell
Walden W. O'Dell
Director
/s/ Joan E. Ryan
Joan E. Ryan
Director
/s/ Richard R. Thomas N. McGowen, Jr.
Director
Richard R. Thomas
Director
SCHEDULE II
FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES
Valuation and Qualifying Accounts
For the Years Ended December 31, 1994, 1993 and 1992
Deductions
Additions Accounts
Balance at Charged to written off Balance
beginning costs and net of at end
Description of year expenses recoveries of year
Year ended December 31, 1994:
Deducted from asset accounts:
Allowance for doubtful accounts
Manufacturing activities $2,215,000 $2,848,000
Financial service activities 976,000 1,174,000
Total $3,191,000 $1,809,000 $ 978,000 $4,022,000
Year ended December 31, 1993:
Deducted from asset accounts:
Allowance for doubtful accounts
Manufacturing activities $1,688,000 $2,215,000
Financial service activities 1,138,000 976,000
Total $2,826,000 $2,710,000 $2,345,000 $3,191,000
Year ended December 31, 1992:
Deducted from asset accounts:
Allowance for doubtful accounts
Manufacturing activities $1,392,000 $1,688,000
Financial service activities 857,000 1,138,000
Total $2,249,000 $2,521,000 $1,944,000 $2,826,000
CEO Certification Under Section 302 of the Sarbanes-Oxley Act
I, Joseph J. Ross, certify that:
1. I have reviewed this annual report Form 10-K of Federal Signal Corporation;
2. Based on my knowledge, this annual 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 annual
report;
3. Based on my knowledge, the financial statements and other financial
information included in this annual 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 annual report.
4. 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 have:
a) 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 annual report is being
prepared.
b) 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
annual report (the "Evaluation Date"); and
c) presented in this annual report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of
the Evaluation Date;
5. 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
functions):
a) 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
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the Registrant's internal
controls; and
6. The Registrant's other certifying officers and I have indicated in this
annual report whether 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: March 27, 2003
/s/ Joseph J. Ross
Joseph J. Ross
Chairman and Chief Executive Officer
CFO Certification under Section 302 of the Sarbanes-Oxley Act
I, Stephanie K. Kushner, certify that:
1. I have reviewed this annual report Form 10-K of Federal Signal Corporation;
2. Based on my knowledge, this annual 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 annual
report;
3. Based on my knowledge, the financial statements and other financial
information included in this annual 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 annual report.
4. 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 have:
a) 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 annual report is being
prepared.
b) 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
annual report (the "Evaluation Date"); and
c) presented in this annual report our conclusions about the effectiveness
of the disclosure controls and procedures based on our evaluation as of
the Evaluation Date;
5. 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
functions):
a) 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
b) any fraud, whether or not material, that involves management or other
employees who have a significant role in the Registrant's internal
controls; and
6. The Registrant's other certifying officers and I have indicated in this
annual report whether 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: March 27, 2003
/s/ Stephanie K. Kushner
Stephanie K. Kushner
Vice President and Chief Financial Officer
SCHEDULE II
FEDERAL SIGNAL CORPORATION AND SUBSIDIARIES
Valuation and Qualifying Accounts
For the Years Ended December 31, 2002, 2001 and 2000
Deductions
Additions Accounts
Balance at Charged to written off Balance
beginning costs and net of at end
Description of year expenses recoveries of year
----------- -------- -------- --------- -------
Deducted from asset accounts -
Allowance for doubtful accounts
Year ended December 31, 2002:
Manufacturing activities $2,355,000 $2,640,000
Financial service activities 1,005,000 1,002,000
--------- ---------
Total $3,360,000 $2,290,000 $2,008,000 $3,642,000
Year ended December 31, 2001:
Manufacturing activities $2,629,000 $2,355,000
Financial service activities 683,000 1,005,000
--------- ---------
Total $3,312,000 $2,382,000 $2,334,000 $3,360,000
Year ended December 31, 2000:
Manufacturing activities $2,901,000 $2,629,000
Financial service activities 976,000 683,000
--------- ---------
Total $3,877,000 $881,000 $1,446,000 $3,312,000