Exhibit 99.2
Consolidated Statements of Operations
(U.S. dollars in thousands, except per share data)
(Unaudited)
| Three months ended | Six months ended | |||||||||||||||
| December 31 | December 31 | |||||||||||||||
| 2003 | 2002 | 2003 | 2002 | |||||||||||||
Net sales and operating revenues | $ | 171,284 | $ | 137,381 | $ | 277,743 | $ | 230,284 | ||||||||
Other income (loss) | 5 | (19 | ) | (28 | ) | (8 | ) | |||||||||
| 171,289 | 137,362 | 277,715 | 230,276 | |||||||||||||
Operating costs and expenses: | ||||||||||||||||
Cost of products sold | 98,783 | 82,379 | 163,188 | 138,907 | ||||||||||||
Selling, general and administrative expenses | 50,330 | 38,819 | 86,930 | 70,035 | ||||||||||||
Depreciation | 1,991 | 1,669 | 3,923 | 3,310 | ||||||||||||
| 151,104 | 122,867 | 254,041 | 212,252 | |||||||||||||
Operating income | 20,185 | 14,495 | 23,674 | 18,024 | ||||||||||||
Foreign currency transaction gains (losses) | (183 | ) | (3 | ) | (236 | ) | 168 | |||||||||
Interest income | 51 | 63 | 100 | 159 | ||||||||||||
Interest expense | (315 | ) | (384 | ) | (502 | ) | (582 | ) | ||||||||
Income before income taxes and cumulative effect of accounting change | 19,738 | 14,171 | 23,036 | 17,769 | ||||||||||||
Income taxes | 10,847 | 6,174 | 12,664 | 7,837 | ||||||||||||
Income before cumulative effect of accounting change | 8,891 | 7,997 | 10,372 | 9,932 | ||||||||||||
Cumulative effect of accounting change for vendor allowances, net of income taxes of $388 | — | — | — | (580 | ) | |||||||||||
Net income | $ | 8,891 | $ | 7,997 | $ | 10,372 | $ | 9,352 | ||||||||
Basic net income per average common share | ||||||||||||||||
Before cumulative effect of accounting change | $ | 0.43 | $ | 0.38 | $ | 0.50 | $ | 0.47 | ||||||||
Cumulative effect of accounting change | — | — | — | (0.03 | ) | |||||||||||
Basic net income per average common share | $ | 0.43 | $ | 0.38 | $ | 0.50 | $ | 0.44 | ||||||||
Diluted net income per average common share | ||||||||||||||||
Before cumulative effect of accounting change | $ | 0.43 | $ | 0.37 | $ | 0.50 | $ | 0.47 | ||||||||
Cumulative effect of accounting change | — | — | — | (0.03 | ) | |||||||||||
Diluted net income per average common share | $ | 0.43 | $ | 0.37 | $ | 0.50 | $ | 0.44 | ||||||||
Average common shares outstanding | 20,469 | 21,192 | 20,546 | 21,275 | ||||||||||||
Average common shares outstanding assuming dilution | 20,819 | 21,361 | 20,871 | 21,487 | ||||||||||||
Consolidated Balance Sheets
(U.S. dollars in thousands, except share amounts)
(Unaudited)
| December 31 2003 | June 30 2003 | December 31 2002 | ||||||||||
Assets | ||||||||||||
Current Assets | ||||||||||||
Cash and short-term investments | $ | 38,528 | $ | 10,322 | $ | 15,277 | ||||||
Accounts receivable, less allowance for doubtful accounts | 36,047 | 16,275 | 25,523 | |||||||||
Inventories | 94,068 | 92,433 | 87,574 | |||||||||
Deferred service contract costs—current portion | 1,551 | 1,368 | 1,177 | |||||||||
Prepaids, deposits and other current assets | 1,785 | 5,301 | 1,385 | |||||||||
Deferred income taxes | 1,358 | 1,306 | 1,325 | |||||||||
Total current assets | 173,337 | 127,005 | 132,261 | |||||||||
Property and equipment, less accumulated depreciation | 35,697 | 33,537 | 28,637 | |||||||||
Deferred service contract costs—non-current portion | 1,351 | 1,071 | 913 | |||||||||
Other assets | 655 | 761 | 681 | |||||||||
Deferred income taxes | 4,110 | 3,955 | 3,461 | |||||||||
Total Assets | $ | 215,150 | $ | 166,329 | $ | 165,953 | ||||||
Liabilities and Stockholders’ Equity | ||||||||||||
Current Liabilities | ||||||||||||
Short-term bank borrowings | $ | 4,677 | $ | — | $ | — | ||||||
Accounts payable | 31,665 | 22,633 | 26,894 | |||||||||
Accrued expenses | 30,130 | 15,290 | 24,763 | |||||||||
Income taxes payable | 10,387 | 1,867 | 2,203 | |||||||||
Long-term bank indebtedness—current portion | 1,543 | 1,484 | 1,272 | |||||||||
Obligation under capital leases—current portion | 275 | 216 | 168 | |||||||||
Deferred service contract revenue—current portion | 9,867 | 8,809 | 7,599 | |||||||||
Deferred income taxes | 286 | 400 | — | |||||||||
Total current liabilities | 88,830 | 50,699 | 62,899 | |||||||||
Long-term bank indebtedness—non-current portion | 4,628 | 5,937 | 5,088 | |||||||||
Obligation under capital leases—non-current portion | 550 | 432 | 340 | |||||||||
Deferred service contract revenue—non current portion | 8,311 | 6,917 | 6,305 | |||||||||
Other liabilities | 5,110 | 4,847 | 4,340 | |||||||||
Total liabilities | 107,429 | 68,832 | 78,972 | |||||||||
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, 32,625,174, 32,453,259 and 32,255,307, respectively, issued | 32,625 | 32,453 | 32,255 | |||||||||
Additional paid-in capital | 160,997 | 159,776 | 158,799 | |||||||||
Common stock in treasury, at cost, 12,443,493, 11,857,093 and 11,386,093 shares, respectively | (129,476 | ) | (123,760 | ) | (120,655 | ) | ||||||
Retained earnings | 45,403 | 35,031 | 36,672 | |||||||||
Accumulated other comprehensive loss | (1,828 | ) | (6,003 | ) | (20,090 | ) | ||||||
Total stockholders’ equity | 107,721 | 97,497 | 86,981 | |||||||||
Total Liabilities and Stockholders’ Equity | $ | 215,150 | $ | 166,329 | $ | 165,953 | ||||||
Consolidated Statements of Cash Flows
(U.S. dollars in thousands)
(Unaudited)
| Six months ended December 31 | ||||||||
| 2003 | 2002 | |||||||
Cash flows from operating activities: | ||||||||
Net income | $ | 10,372 | $ | 9,352 | ||||
Adjustments to reconcile net income to cash provided by operating activities: | ||||||||
Depreciation | 3,923 | 3,310 | ||||||
Deferred income taxes | (113 | ) | — | |||||
Stock-based compensation | 561 | 594 | ||||||
Other | 65 | 34 | ||||||
Cash provided by (used in) assets and liabilities: | ||||||||
Accounts receivable | (18,630 | ) | (13,052 | ) | ||||
Inventories | 1,999 | (8,880 | ) | |||||
Prepaids, deposits and other current assets | 3,558 | (156 | ) | |||||
Accounts payable | 7,879 | 14,614 | ||||||
Accrued expenses | 13,739 | 5,647 | ||||||
Income taxes payable | 8,297 | (5,907 | ) | |||||
Deferred service contract revenue | 1,772 | 1,042 | ||||||
Deferred service contract costs | (451 | ) | (29 | ) | ||||
Net cash provided by operating activities | 32,971 | 6,569 | ||||||
Cash flows from investing activities: | ||||||||
Additions to property and equipment | (4,341 | ) | (3,123 | ) | ||||
Proceeds from sales of property and equipment | 11 | 57 | ||||||
Other investing activities | 286 | (293 | ) | |||||
Net cash used in investing activities | (4,044 | ) | (3,359 | ) | ||||
Cash flows from financing activities: | ||||||||
Short-term bank borrowings | 17,322 | 35,167 | ||||||
Repayments of short-term bank borrowings | (12,803 | ) | (35,425 | ) | ||||
Long-term bank indebtedness | — | 6,382 | ||||||
Repayments of long-term bank indebtedness | (1,502 | ) | — | |||||
Proceeds from issuance of common stock to employee plans | 650 | 642 | ||||||
Proceeds from exercise of stock options | 182 | 43 | ||||||
Repayment of obligation under capital leases | (119 | ) | (21 | ) | ||||
Purchase of treasury stock | (5,715 | ) | (9,128 | ) | ||||
Net cash used in financing activities | (1,985 | ) | (2,340 | ) | ||||
Effect of exchange rate changes on cash | 1,264 | (292 | ) | |||||
Net increase in cash and short-term investments | 28,206 | 578 | ||||||
Cash and short-term investments, beginning of period | 10,322 | 14,699 | ||||||
Cash and short-term investments, end of period | $ | 38,528 | $ | 15,277 | ||||
