Guitar Center 8-K Other events

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Guitar Center, Inc. and subsidiaries
Consolidated Balance Sheets
(In thousands)

			December 31, 2002			December 31, 2001
Assets
Current assets:
	Cash		$	5,931		$	17,480
	Accounts receivable, less allowance for doubtful accounts $624 and $959, respectively			19,762			19,243
	Merchandise inventories			292,075			249,685
	Prepaid expenses and deposits			8,626			6,404
	Deferred income taxes			6,077			4,744
Total current assets				332,471			297,556
Property and equipment, net				89,702			81,056
Goodwill				25,995			21,032
Deposits and other assets, net				4,231			5,040
			$	452,399		$	404,684
Liabilities and stockholders' equity
Current liabilities:
	Accounts payable		$	70,745		$	78,287
	Accrued expenses and other current liabilities			54,211			38,834
	Merchandise advances			13,882			12,780
	Revolving line of credit			82,690			76,904
	Current portion of long-term debt			118			638
Total current liabilities				221,646			207,443
Other long-term liabilities				5,691			3,716
Deferred income taxes				3,352			2,733
Long-term debt				66,782			66,924
Total liabilities				297,471			280,816
Stockholders' equity:
	Preferred Stock; authorized 5,000 shares at December 31, 2002 and 2001, none issued and outstanding			—			—
	Common Stock, $0.01 par value, authorized 55,000 shares, issued and outstanding 22,746 at December 31, 2002 and 22,315 at December 31, 2001			227			223
	Additional paid in capital			253,863			248,063
	Accumulated deficit			(99,162	)		(124,418	)
		Total stockholders' equity		154,928			123,868
			$	452,399		$	404,684

Guitar Center, Inc. and subsidiaries
Consolidated Statements of Income
(In thousands, except per share data)

			Three months ended December 31,
			2002		2001
Net sales			$	334,823	$	289,908
Cost of goods sold, buying and occupancy				240,042		211,460
	Gross profit			94,781		78,448
Selling, general and administrative expenses				69,671		58,829
	Operating income			25,110		19,619
Other expense:
	Write-off of investment in non-consolidated entity			—		3,539
	Interest expense, net			3,521		3,660
		Total other expense		3,521		7,199
Income before income taxes				21,589		12,420
Income taxes				8,233		5,839
	Net income		$	13,356	$	6,581
Net income per share
	Basic		$	0.59	$	0.30
	Diluted		$	0.57	$	0.29
Weighted average shares outstanding
	Basic			22,637		22,295
	Diluted			23,391		22,589

Guitar Center, Inc. and subsidiaries
Consolidated Statements of Income
(In thousands, except per share data)

			Year ended December 31,
			2002		2001
Net sales			$	1,100,889	$	949,285
Cost of goods sold, buying and occupancy				810,474		702,311
	Gross profit			290,415		246,974
Selling, general and administrative expenses				236,537		200,748
	Operating income			53,878		46,226
Other expense:
	Write-off of investment in non-consolidated entity			—		3,539
	Interest expense, net			13,077		13,411
		Total other expense		13,077		16,950
Income before income taxes				40,801		29,276
Income taxes				15,545		12,243
	Net income		$	25,256	$	17,033
Net income per share
	Basic		$	1.12	$	0.77
	Diluted		$	1.09	$	0.75
Weighted average shares outstanding
	Basic			22,491		22,229
	Diluted			23,130		22,700

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Guitar Center, Inc. and subsidiaries Consolidated Balance Sheets (In thousands)
Guitar Center, Inc. and subsidiaries Consolidated Statements of Income (In thousands, except per share data)
Guitar Center, Inc. and subsidiaries Consolidated Statements of Income (In thousands, except per share data)