EXHIBIT 99.1
UNITED INDUSTRIAL CORPORATION
570 LEXINGTON AVENUE, NEW YORK, NY 10022
CONTACT: JAMES H. PERRY
VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
(410) 628-8786
UNITED INDUSTRIAL REPORTS FOURTH QUARTER
AND YEAR-END RESULTS
NEW YORK, NY, MARCH 11, 2003 - United Industrial Corporation (NYSE: UIC) today
announced its financial results for the fourth quarter and full year ended
December 31, 2002.
Revenue, income and loss figures from continuing operations include the results
of the Company's Defense and Energy segments only. The results of the Company's
remaining transportation operations have been reported as discontinued
operations.
Fourth Quarter Results
- ----------------------
For the fourth quarter of 2002, revenues from continuing operations increased
11.9% to $69.5 million from $62.1 million in the year-ago quarter. Revenue for
the Company's Defense segment increased 15.3% to $63.1 million, and Energy
segment revenue decreased 13% to $6.4 million.
Including a net asbestos-related provision of $11.5 million ($7.3 million net of
tax) or $.56 per diluted share, discussed below and in an annex to this
disclosure, the Company's loss for the fourth quarter of 2002 was $3.3 million,
or a loss of $.25 per diluted share. Excluding the net asbestos-related
provision, the Company reported income from continuing operations for the 2002
fourth quarter of $4.0 million, or $.31 per diluted share (on a weighted average
of 13,066,000 diluted shares outstanding). This compares to income from
continuing operations in the fourth quarter 2001 of $4.5 million, or $.33 per
diluted share (on a weighted average of 13,501,000 diluted shares outstanding).
Fourth quarter results in 2001 included a curtailment gain of $.5 million ($.3
million net of tax), or $.02 per diluted share, resulting from changes the
Company made in its post-retirement benefits plan that reduced the Company's
future liabilities.
The fourth quarter 2002 results include a pension expense of $771,000 ($509,000
net of tax), or $.04 per diluted share, compared to pension income of $416,000
($275,000 net of tax), or $.02 per diluted share, in the fourth quarter of 2001.
This decrease is due to downward trends in the securities market and interest
rates. Excluding the effect of the pension plan performance in both years, the
net asbestos-related provision in 2002, and the curtailment gain in 2001, income
from continuing operations before tax for the 2002 fourth quarter was $5.6
million ($4.5 million net of tax), or $.35 per diluted share, compared to $6.2
million ($3.9 million net of tax), or $.29 per diluted share, in the year-ago
period.
On November 15, 2002, the Company announced it expected to record a provision
for liabilities associated with asbestos-related matters during the fourth
quarter. Based on the analyses of an independent asbestos consulting firm and an
independent insurance consulting firm, the Company has recorded a provision in
the amount of $31.8 million associated with asbestos-related liabilities,
including damages and defense costs, through 2012. In addition, the Company has
recorded an asset in the amount of $20.3 million, reflecting the estimate
determined by its insurance consultants to be probable of being available to
mitigate the Company's potential asbestos liability through 2012. These figures
represent a net, pre-tax charge of $11.5 million ($7.3 million net of tax), or
$.56 per diluted share. The Company's management believes that the asbestos
claims should not have a material adverse effect on the Company's long-term
financial condition, liquidity or results of operations, although the claims
could have a material adverse effect in a particular reporting period. No
assurances can be given, however, as to the actual amount of the Company's
liability for such present and future claims or insurance recoveries. Further
details regarding the Company's analysis related to the asbestos disclosure are
annexed to this press release.
As a result of the decline in overall stock market values and interest rates,
United Industrial was required, under accounting regulations, to record a
minimum pension liability of approximately $8.3 million as of December 31, 2002,
compared to a net pension asset of $46.9 million at December 31, 2001. The
adjustment resulted in a non-cash charge to stockholders' equity of
approximately $32.3 million, net of a deferred tax benefit of $17.3 million and
an intangible asset of $4.3 million. The adjustment does not affect the
Company's income statement or earnings.
Richard R. Erkeneff, President and Chief Executive Officer of United Industrial,
commented, "On an operating basis, United Industrial's continuing operations had
a solid fourth quarter and 2002, excluding the effect of the asbestos matter
that impacted bottom-line results and pension plan performance. Our core defense
business continues to make excellent strides, driven by major programs such as
the Tactical Unmanned Aerial Vehicle for the U.S. Army, the Joint Services
Electronic Combat Systems Tester and the C-17 Maintenance Training program for
the U.S. Air Force. As a testament to the steady customer interest we are
seeing, backlog has continued to show significant increases, reaching $296.1
million in our Defense segment at 2002 year-end, up 47% from $201.2 million a
year earlier."
"Concerning our previously announced process to sell the Company, the
asbestos-related matter has complicated our ongoing efforts to sell the entire
Company. Our Board continues to move forward in exploring a potential sale of
all or parts of the Company to maximize shareholder value, and we are evaluating
potential strategies to better position the Company for a sale in the future. In
the meantime, however, we are focused on managing our businesses for optimal
performance and profitability, and we believe with or without a sale, United
Industrial is favorably positioned for the future," Mr. Erkeneff said.
The Company's discontinued transportation operations reported a pre-tax loss for
the fourth quarter of 2002 of $25.2 million, or a loss of $1.26 per diluted
share, compared to a loss of $9.1 million, or a loss of $.41 per diluted share,
in the fourth quarter a year ago. The Company has sufficient taxable income in
prior years to absorb the current year's loss and generate a tax refund.
Consequently, the Company is in the process of preparing an application for tax
refund for about $15 million regarding the Company's net loss. The cash benefit
is expected to be received during 2003. Included in the fourth quarter loss is a
$4.7 million provision to reflect higher estimated costs now anticipated to
complete the Company's one remaining active transportation contract for electric
trolley buses for the San Francisco Municipal Railway. The quarter also includes
provisions of $6.2 million and $11.4 million, representing the Company's 35%
equity share of the additional estimated losses from its ETI joint venture and
its joint venture partner's 65% equity share, since its partner is unlikely to
have the financial capability to fund its share of such losses. During the
fourth quarter, material issues started to substantially impact the production
line, and technical issues with some of the major subassemblies contributed to a
further extension of the production schedule. These events resulted in a
re-planning of the production schedule and subsequent estimated cost increases.
The Company now expects the production to be completed by year-end.
Mr. Erkeneff continued, "The continuing losses in our discontinued
transportation operations were disappointing. Supplier quality issues, schedule
delays and our joint venture partner's financial condition all contributed in a
significant way to these losses. Notwithstanding these production issues, we
anticipate the completion of production in 2003 and believe that electric
trolley bus acceptability by the customer remains strong."
Full Year Results
- -----------------
For the full year 2002, revenues from continuing operations rose 8.5% to $258.8
million from $238.5 million in 2001. Revenue for the Company's Defense segment
increased 10% to $229.2 million, and Energy segment revenue decreased 1% to
$29.6 million.
The Company's income from continuing operations, including a restructuring
charge of $4.7 million ($3.1 million net of tax), or $.23 per diluted share,
associated with closing the Company's foundry operations and the
asbestos-related provision, was $3.9 million, or $.28 per diluted share (on a
weighted average of 13,698,000 diluted shares outstanding), for 2002. Excluding
the restructuring charge and the asbestos-related provision, the 2002 income
from continuing operations was $14.2 million, or $1.04 per diluted share. In
2001, the Company reported income from continuing operations of $14.6 million,
or $1.10 per diluted share (on a weighted average of 13,289,000 diluted shares
outstanding), which included a local income tax benefit of $1.0 million ($.7
million net of tax), or $.05 per diluted share, income from litigation of $.8
million ($.6 million net of tax), or $.04 per diluted share; and a curtailment
gain of $1.9 million ($1.3 million net of tax) or $.09 per diluted share,
resulting from changes the Company made in its post-retirement benefits plan
that reduced the Company's future liabilities.
The 2002 results include pension expense of $1.3 million ($.9 million net of
tax), or $.06 per diluted share, compared to pension income of $2.4 million
($1.6 million net of tax), or $.12 per diluted share in 2001, reflecting the
downward trends in the securities market and interest rates.
Excluding the restructuring charge and the net asbestos-related provision in
2002, the income tax benefit, income from litigation and the curtailment gain in
2001, and the pension plan performance in both years, the Company's income from
continuing operations before tax for 2002 was $22.0 million ($15.1 million net
of tax) or $1.10 per diluted share compared to $15.9 million ($10.5 million net
of tax) or $.80 per diluted share in 2001.
Also included in the 2002 results are costs of $1.0 million ($.7 million net of
tax), or $.05 per diluted share, associated with the negotiated settlement to
conclude a particular government defense program.
During 2002, the Company's discontinued transportation operations posted a
pre-tax loss of $66.1 million, or a loss of $3.13 per diluted share, compared to
a pre-tax loss of $14.9 million, or a loss of $.70 per diluted share, in 2001.
The Company has sufficient taxable income in prior years to absorb the current
year's loss and generate a tax refund. Consequently, the Company is in the
process of preparing an application for tax refund for about $15 million
regarding the Company's net loss. The cash benefit is expected to be received
during 2003. The loss for 2002 includes a $21.5 million provision recorded in
connection with the sale of the Company's transportation overhaul contracts with
the New Jersey Transit Corporation and Maryland Transit Administration, an
increase of $7.8 million in costs to complete the remaining transportation
contract, $4.8 million of general and administrative expenses and $5.4 million
of other disposition costs related to the divested contracts. In addition, the
Company recorded a provision of $9.3 million related to its 35% equity share of
the estimated losses at its ETI joint venture and a provision of $17.3 million
related to its joint venture partner's 65% equity share of the losses, since its
partner is unlikely to have the financial capability to fund its share of such
losses. During the full year, material issues impacted the production line, and
technical issues with some of the major subassemblies further contributed to an
extension of the production schedule. These events resulted in a re-planning of
the production line and subsequent estimated cost increases.
Operating Highlights
- --------------------
Mr. Erkeneff continued, "United Industrial's results for the fourth quarter and
2002 reflect our continuing emphasis on aligning our capabilities to best meet
the needs of the U.S. military and other customers within the context of 21st
century defense requirements. We are well attuned to the changes taking place
within our nation's Armed Forces, and we believe we continue to be well
positioned to capitalize on a range of forward trends in the defense sector.
"This focus is clearly evidenced in the outstanding performance of our Unmanned
Aerial Vehicle (UAV) business, which had a banner fourth quarter and an
exceptional year. Late in December, we received our first full-rate production
award for the next-generation Tactical Unmanned Aerial Vehicle (TUAV) program we
developed for the U.S. Army. This is the first full-rate production contract
ever awarded by the Department of Defense for a UAV system. Valued at $86
million, this contract provides for the production of nine TUAV systems,
including spare parts, maintenance, ground and other equipment, and signals the
Army's long-term commitment to use and field United Industrial's TUAV system.
"At the same time, we are expanding a number of separate contracts for
additional services in support of the TUAV program - including engineering
support, research and development, and total system logistics support - that may
eventually rival the production portion of the program in value. We are also
hard at work integrating our Shadow TUAV system's ground control equipment with
the Hunter UAV system under the Army's `One System' concept. We are confident
that, by continuing to prove the flexibility of our UAV systems, we will create
further platform integration opportunities with the Army, other U.S. Services
and Homeland Defense. In addition, there is significant international interest
generated by our U.S. Army TUAV production contract.
"In simulation and test systems, the Joint Service Electronic Combat Systems
Tester (JSECST), the DoD's program to provide a standard flight-line electronic
warfare test system for all branches of the military, remains a major growth
platform for our Company. Producing a state-of-the-art test system that
stimulates and measures electronic warfare radar detection devices to assure
mission readiness, we continue to make steady progress on this program to
deliver 315 core test sets and related equipment, now valued at $84.0 million.
In addition, we have obtained contracts to provide 13 additional core test sets
and spares to international customers valued at $3.0 million. We expect the
increasing worldwide adoption of the JSECST will continue to provide growth
opportunities on a global basis.
"Shipboard training systems remains a core segment of our simulation and test
systems business, generating consistently steady demand and underpinned by our
traditionally close ties with the U.S. Navy. Most recently, we have received a
contract to develop the first on-board training system for Gun Fire Support
systems, which will be an increasingly vital component to training when current
live-fire ranges are closed. The Navy has announced its intention to purchase 10
Gun Fire Support systems over the next 18 months, creating the potential for
further opportunities in this area. Building on our expertise in shipboard
training systems, we were also awarded a contract to produce two Radar
Environmental Stimulators for a ground-based air defense radar system, the first
of many such awards expected over the course of the next several years. These
key programs include the development of a Radar Stimulator for use in a Sensor
Fusion Product. We have also made excellent progress in our development of an
F-16C aircraft maintenance training system with NLX Corporation, and were
recently awarded a contract by NLX to continue this work.
"ACL Technologies, our hydraulic, fuel and pneumatic testing business, continues
to pursue a number of strong potential programs that provide opportunities for
performance improvement. Our work at ACL continues to be highlighted by our F-16
Maintenance Depot program in Egypt, that now has a total contract value of $50.6
million with a current backlog of $3.7 million. This has been a very successful
contract for the Company, and we continue to actively pursue additional
opportunities in Egypt as well as programs at other depot maintenance
facilities.
"Engineering Support Inc. (ESI), our engineering and maintenance services unit,
delivered a solid quarter, concluding a year of excellent achievements. We
continue to generate strong results in our ongoing work for the U.S. Air Force's
C-17 and C-130 aircraft, both increasingly critical to the military given its
expanded emphasis on quick reaction capabilities. Our C-17 program, including
work on our contract for the Mississippi Air National Guard with $51.5 million
in backlog, is now the largest single program in ESI's 21-year-history,
exceeding $200 million in total contract value. Further, our $2.1 million
subcontract with Boeing to support their C-130 Avionics Modernization Program
for the Air Force, also continues smoothly. We are optimistic about further
growth opportunities in both of these areas.
"Detroit Stoker, our energy systems subsidiary, is realizing the benefits based
on the cost-cutting actions we took earlier in the year, including the closure
of the foundry operation and outsourcing of casting requirements. We expect to
continue to benefit from these actions in 2003," Mr. Erkeneff concluded.
UNITED INDUSTRIAL CORPORATION is a company focused on the design and production
of defense, training and energy systems. Its products include unmanned aerial
vehicles, training and simulation systems, and automated aircraft test and
maintenance equipment. The Company also offers logistical/engineering services
for government-owned equipment and manufactures combustion equipment for biomass
and refuse fuels.
Except for the historical information contained herein, information set forth in
this news release may contain forward-looking statements subject to risks and
uncertainties which could cause the Company's actual results or performance to
differ materially from those expressed or implied in such statements. The
Company makes no commitment to update any forward-looking statement or to
disclose any facts, events, or circumstances after the date hereof that may
affect the accuracy of any forward-looking statement. For additional information
about the Company and its various risk factors, reference is made to the
Company's most recent Annual Report on Form 10-K, and Quarterly Report on Form
10-Q as filed with the Securities and Exchange Commission.
For more information, please visit United Industrial's web site at
http://www.unitedindustrial.com.
--------------------------------
# # #
United Industrial Corporation and Subsidiaries
FINANCIAL HIGHLIGHTS:
Quarter Ended Twelve Months Ended
December 31 December 31
----------- --------------------------
(unaudited)
2002 2001 2002 2001
---- ---- ---- ----
Net Sales From
Continuing Operations $69,463,000 $62,052,000 $258,767,000 $238,495,000
(Loss) Income From
Continuing Operations ($ 3,312,000) $ 4,488,000 $ 3,864,000 $ 14,628,000
Loss From
Discontinued Operations ($16,407,000) ($ 5,606,000) ($42,941,000) ($ 9,265,000)
Net (Loss) Income ($19,719,000) ($ 1,118,000) ($39,077,000) $ 5,363,000
============= ============== ============= ============
Basic Earnings per share:
(Loss) Income From
Continuing Operations ($ .25) $.35 $ .30 $1.15
Loss From
Discontinued Operations ($1.26) ($.44) ($3.30) ($ .73)
Net (Loss) Income ($1.51) ($.09) ($3.00) $ .42
Diluted Earnings per Share:
(Loss) Income From
Continuing Operations ($ .25) $.33 $ .28 $1.10
Loss From
Discontinued Operations ($1.26) ($.41) ($3.13) ($ .70)
Net (Loss) Income ($1.51) ($.08) ($2.85) $.40
Weighted average shares outstanding:
Basic 13,066,000 12,842,000 13,021,000 12,697,000
========== ========== ========== ==========
Diluted 13,066,000 13,501,000 13,698,000 13,289,000
========== ========== ========== ==========
Like many other companies, UIC and its Detroit Stoker subsidiary have been named
as defendants in asbestos-related personal injury litigation. Neither UIC nor
Detroit Stoker fabricated, milled, mined, manufactured or marketed asbestos.
Detroit Stoker stopped the use of asbestos-containing materials in connection
with its products sometime in 1981.
The subject litigation is pending in Michigan, Mississippi, New York and North
Dakota. During 2002 UIC and Detroit Stoker experienced a significant increase in
the volume of asbestos bodily-injury claims and as of December 31, 2002, the
Company is a named defendant in 422 active cases involving approximately 15,105
claimants. Most of these lawsuits do not include specific dollar claims for
damages, and many include a number of plaintiffs and multiple defendants. Based
on historical data and the large increase in claimants over and above the
projected incidence of disease relative to the Company's products, management
believes the claimants in the vast majority of these cases will not be able to
demonstrate that they have been exposed to the Company's asbestos-containing
products or suffered any compensable loss as a result of such exposure. The
direct asbestos-related expenses of the Company for defense and indemnity for
the past five years was not material.
The Company engaged a consulting firm (the "Asbestos Consultant") with expertise
in evaluating asbestos bodily-injury claims to work with the Company to project
the amount that the Company may pay for its asbestos-related liabilities and
defense costs. The methodology employed by the Consultant to project the
Company's asbestos-related liabilities and defense costs is primarily based on
(1) estimates of the labor force exposed to asbestos in the Company's products,
(2) epidemiological modeling of asbestos-related disease manifestation, and (3)
estimates of claim filings and settlement and defense costs that may occur in
the future. The Company's limited claims history was not a significant variable
in developing the estimates because such history was not significant as compared
to the number of claims filed in 2002.
The Company also retained another consultant (the "Insurance Consultant") to
work with the Company to project its insurance coverage, including a non-binding
sharing agreement with certain of its primary insurance carriers that has been
in effect for approximately five years. The Insurance Consultant has prepared a
report evaluating the Company's potential insurance coverage for defense costs
and indemnification for asbestos bodily-injury claims. The Insurance
Consultant's conclusion was primarily based on a review of the Company's
coverage history, application of reasonable assumptions on the allocation of
coverage consistent with industry standards, an assessment of the
creditworthiness of the insurance carriers, experience and a review of the
report of the Asbestos Consultant.
Based on these assumptions, other variables, and the reports of both the
Asbestos and Insurance Consultants, the Company has recorded a reserve for its
bodily injury liabilities for asbestos-related matters through 2012 in the
amount of $31,800,000 as of December 31, 2002, including damages and defense
costs. The Company has also recorded an estimated insurance recovery as of
December 31, 2002 of $20,300,000 reflecting the estimate determined to be
probable of being available to mitigate the Company's potential asbestos
liability through 2012. These figures represent a net pretax charge of
$11,500,000 for the year ended December 31, 2002.
The Company has previously reported that its total asbestos damages and defense
costs could be about $75 million and the liability projected by the Asbestos
Consultant through 2055 is materially consistent with that preliminary estimate.
In addition, the estimate prepared by the Insurance Consultant indicates that
after 2012, the Company's potential insurance recoveries will be reduced.
Although the extent of that reduction is not currently determinable, the Company
believes, based on the estimate of its Insurance Consultant, the available
insurance coverage from 2003 to 2055 would be about 50% of the liability. The
year 2055 was chosen because it is projected to be the last year in which an
asbestos - related claim is expected to be filed in the United States.
Nevertheless, management has concluded that consideration of asbestos-related
activity through 2012 represents a period for which a reasonable and reliable
forecast of liability and insurance recoveries can be projected. That conclusion
is based upon a number of factors, including 1) the uncertainties inherent in
estimating asbestos claims, payments and insurance recoveries, 2) knowledge that
prior to 2002 the number of claims filed against the Company and the related
average settlement costs were not significant, and 3) consultations with the
Asbestos and Insurance Consultants. Accordingly, the net provision does not take
into account either asbestos liabilities or insurance recoveries for any period
past 2012.
The Company believes that its ultimate net asbestos-related contingent liability
(i.e., its indemnity or other claim disposition costs plus related legal fees
less insurance recoveries) cannot be estimated with certainty. Projecting future
events, such as the number of new claims expected to be filed each year, the
average cost of resolving each claim, coverage issues among layers of insurers
and the continuing solvency of various insurance companies is subject to many
uncertainties which could cause the actual liabilities and insurance recoveries
to be higher or lower than those recorded or projected, and such differences
could be material. Moreover, were Federal tort reform legislation to be enacted,
the assumptions used in determining the potential range of liability could be
materially impacted.
After considering the efforts of both Consultants and based upon the facts as
now known, including the reasonable possibility that claims will be received and
paid over the next 50 year period, the Company's management believes that
although asbestos claims could have a material adverse effect on the Company's
financial condition or results of operations in a particular reporting period,
asbestos claims should not have a material adverse effect on the Company's long
term financial condition, liquidity or results of operations. No assurance can
be given, however, as to the actual amount of the Company's liability for such
present and future claims or insurance recoveries, and the differences from
estimated amounts could be material.
United Industrial Corporation and Subsidiaries
Segment Data
(Dollars in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------------- ------------------------
2002 2001 2002 2001
------------- ------------ ----------- ----------
(unaudited) (unaudited)
NET SALES:
Defense $63,060 $54,706 $229,215 $208,575
Energy 6,403 7,346 29,552 29,920
Total 69,463 62,052 258,767 238,495
SEGMENT (LOSS) PROFIT
Defense $5,578 $6,335 $17,113 $18,422
Energy ($10,042) $877 ($10,108) $3,042
Other ($2,242) ($96) ($2,567) $547
Total ($6,706) $7,116 $4,438 $22,011
(Expenses) income included in Segment (loss) profit above:
Defense
Pension (expense) income (1,152) (367) (2,952) 566
Post-retirement curtailment gain 483 1,933
Energy
Restructuring costs (4,707)
Asbestos provision, net (11,509) (11,509)
Pension income 381 783 1,631 1,819
United Industrial Corporation and Subsidiaries
Reconciliation for GAAP to Pro Froma (Loss) Earnings Before Income Taxes
(Dollars in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------------- ---------------------------
2002 2001 2002 2001
------------- ------------ ----------- -----------
(unaudited) (unaudited)
GAAP (loss) earnings from continuing operations
before income taxes ($6,706) $7,116 $4,438 $22,011
Plus:Net asbestos related provision 11,509 11,509
Plus:Restructuring charge 4,707
Plus:Pension expense 771 1,321
Less:Pension income (416) (2,385)
Less: Post-retirement curtailment gain (483) (1,933)
Less:Income from litigation settlement (842)
Less: Income tax benefit (1,000)
Pro forma earnings from continuing operations
before income taxes 5,574 6,217 21,975 15,851
GAAP AND PRO FORMA RESULTS
THE FOLLOWING TABLE PROVIDES A RECONCILIATION OF UIC'S
GAAP TO PRO FORMA (LOSS) EARNINGS PER DILUTED SHARE FOR
CONTINUING OPERATIONS
Three Months Ended Twelve Months Ended
December 31, December 31,
----------------------------- --------------------------
2002 2001 2002 2001
------------- ------------ ----------- -----------
(unaudited) (unaudited)
GAAP (loss) earnings per diluted share from
continuing operations ($0.25) $0.33 $0.28 $1.10
Plus:Net asbestos related provision 0.56 0.53
Plus:Restructuring charge 0.23
Plus:Pension expense 0.04 0.06
Less:Pension income (0.02) (0.12)
Less: Post-retirement curtailment gain (0.02) (0.09)
Less:Income from litigation settlement (0.04)
Less: Income tax benefit (0.05)
Pro forma earnings per diluted share from
continuing operations 0.35 0.29 1.10 0.80
United Industrial Corporation and Subsidiaries
Calculation of EBITDAAP
(Dollars in thousands)
Three Months Ended Twelve Months Ended
December 31, December 31,
---------------------------------- ------------------------------
2002 2001 2002 2001
---------------- ---------------- --------------- -------------
(unaudited) (unaudited)
(Loss) earnings from continuing operations
before income taxes ($6,706) $7,116 $4,438 $22,011
Net interest expense (income) 200 (56) 716 (601)
Depreciation and amortization 1,373 1,704 8,763 6,413
Non-cash pension expense (income) 771 (416) 1,321 (2,385)
Non-cash post-retirement curtailment gain (483) (1,933)
Non-cash net provision for asbestos related litigation 11,509 11,509
EBITDAAP 7,147 7,865 26,747 23,505
EBITDAAP is defined as earnings before interest, taxes, depreciation,
amortization, net asbestos related provision, and pension and other
retirement costs