Intertan 8-K Financial statements and exhibits

Exhibit 99.2

Consolidated Statements of Operations

(U.S. dollars in thousands, except per share data)

(Unaudited)

	Three months ended						Nine months ended
	March 31						March 31
	2003			2002			2003			2002
Net sales and operating revenues	$	81,865		$	82,678		$	312,149		$	308,874
Other income (loss)		(3	)		1			(11	)		(1	)
		81,862			82,679			312,138			308,873
Operating costs and expenses:
Cost of products sold		49,162			49,662			190,932			187,418
Selling, general and administrative expenses		30,825			27,063			97,082			87,990
Depreciation and amortization		1,735			1,388			5,045			4,132
Restructuring charge		—			—			—			2,703
		81,722			78,113			293,059			282,243
Operating income		140			4,566			19,079			26,630
Foreign currency transaction gains (losses)		(131	)		(33	)		37			262
Interest income		64			266			223			1,301
Interest expense		(249	)		(102	)		(831	)		(302	)
Income (loss) before income taxes		(176	)		4,697			18,508			27,891
Income taxes		228			2,294			8,433			12,774
Net income (loss)	$	(404	)	$	2,403		$	10,075		$	15,117
Basic net income (loss) per average common share	$	(0.02	)	$	0.10		$	0.48		$	0.58
Diluted net income (loss) per average common share	$	(0.02	)	$	0.10		$	0.47		$	0.57
Average common shares outstanding		20,600			24,175			21,053			25,900
Average common shares outstanding assuming dilution		20,600			24,670			21,240			26,371

Consolidated Balance Sheets

(U.S. dollars, in thousands, except share data)

(Unaudited)

	March 31			June 30			March 31
	2003			2002			2002
Assets
Current Assets
Cash and short-term investments	$	10,915		$	14,699		$	36,601
Accounts receivable, less allowance for doubtful accounts		14,241			12,903			13,748
Inventories		87,240			81,314			82,497
Other current assets		1,966			1,300			1,975
Deferred income taxes		1,417			1,374			2,174
Total current assets		115,779			111,590			136,995
Property and equipment, less accumulated depreciation and amortization		30,667			29,604			22,438
Other assets		659			328			336
Deferred income taxes		3,731			3,580			2,878
Total Assets	$	150,836		$	145,102		$	162,647
Liabilities and Stockholders’ Equity
Current Liabilities
Accounts payable	$	19,064		$	12,793		$	13,227
Accrued expenses		13,509			19,445			15,726
Income taxes payable		3,081			8,365			15,446
Long-term bank indebtedness—current portion		1,361			—			—
Obligation under capital leases—current portion		187			164			—
Deferred service contract revenue—current portion		6,810			6,226			5,656
Total current liabilities		44,012			46,993			50,055
Long-term bank indebtedness—non-current portion		5,442			—			—
Obligation under capital leases—non-current portion		390			384			—
Deferred service contract revenue—non current portion		5,387			4,975			4,896
Other liabilities		4,501			4,304			2,400
Total liabilities		59,732			56,656			57,351
Stockholders’ Equity
Preferred stock, no par value, 1,000,000 shares authorized, none issued or outstanding		—			—			—
Common stock, $1 par value, 40,000,000 shares authorized, 32,360,375, 32,091,097 and 31,857,135, respectively, issued		32,360			32,091			31,857
Additional paid-in capital		159,311			157,684			155,932
Common stock in treasury, at cost, 11,857,093, 10,337,243 and 8,518,692 shares, respectively		(123,760	)		(111,527	)		(89,182	)
Retained earnings		37,395			27,320			28,869
Accumulated other comprehensive loss		(14,202	)		(17,122	)		(22,180	)
Total stockholders’ equity		91,104			88,446			105,296
Commitments and contingencies
Total Liabilities and Stockholders’ Equity	$	150,836		$	145,102		$	162,647

Consolidated Statements of Cash Flows

(U.S. dollars in thousands)

(Unaudited)

	Nine months ended
	March 31
	2003			2002
Cash flows from operating activities:
Net income	$	10,075		$	15,117
Adjustments to reconcile net income to cash provided by operating activities:
Depreciation and amortization		5,045			4,132
Stock-based compensation		877			1,013
Other		36			16
Cash provided by (used in) assets and liabilities:
Accounts receivable		(960	)		(1,708	)
Inventories		(3,071	)		3,228
Other current assets		(665	)		(897	)
Accounts payable		5,558			(5,881	)
Accrued expenses		(6,603	)		2,572
Income taxes payable		(5,250	)		(8,345	)
Deferred service contract revenue		606			972
Net cash provided by operating activities		5,648			10,219
Cash flows from investing activities:
Additions to property and equipment		(4,779	)		(7,902	)
Proceeds from sales of property and equipment		61			124
Other investing activities		(154	)		(372	)
Net cash used in investing activities		(4,872	)		(8,150	)
Cash flows from financing activities:
Short-term bank borrowings		47,796			—
Repayments of short-term bank borrowings		(48,224	)		—
Long-term bank indebtedness		6,803			—
Proceeds from issuance of common stock to employee plans		978			1,203
Proceeds from exercise of stock options		43			2,394
Repayment of obligation under capital leases		11			—
Purchase of treasury stock		(12,233	)		(53,567	)
Net cash used in financing activities		(4,826	)		(49,970	)
Effect of exchange rate changes on cash		266			(1,731	)
Net decrease in cash and short-term investments		(3,784	)		(49,632	)
Cash and short-term investments, beginning of period		14,699			86,233
Cash and short-term investments, end of period	$	10,915		$	36,601