[GRAPHIC OMITTED]
News Release
#06-03 CONTACT:
Doug Dean
Director, Investor Relations
B/E Aerospace, Inc.
(561) 791-5000 ext. 1450
B/E AEROSPACE REPORTS FOURTH QUARTER 2005 FINANCIAL RESULTS;
RECORD REVENUES OF $223 MILLION UP 18 PERCENT, DILUTED EPS OF $0.96;
RECORD BACKLOG REACHES $1.1 BILLION
WELLINGTON, FL, February 3, 2006 - B/E Aerospace, Inc. (Nasdaq: BEAV),
the world's leading manufacturer of aircraft cabin interior products and a
leading aftermarket distributor of aerospace fasteners, today announced fourth
quarter and full year financial results for 2005.
HIGHLIGHTS
o Record fourth quarter revenues of $223 million were up 18% organically.
o Fourth quarter operating earnings of $24.2 million were 48 percent higher
than the same period in the prior year. Fourth quarter operating margin
of 10.9 percent expanded by 230 basis points versus the same period in
the prior year. Excluding charges related to the accelerated vesting of
employee stock options and hurricane-related costs, operating earnings
were $26.6 million or 11.9 percent of sales.
o Net earnings for the quarter were $62.1 million or $0.96 per diluted
share and include a one-time tax benefit of approximately $52 million
associated with the recognition of the company's domestic deferred tax
asset. Excluding the tax benefit, net earnings and earnings per diluted
share were $10.2 million and $0.16, respectively. Excluding the tax
benefit and one time items, net earnings and earnings per diluted share
were $11.9 million and $0.18, respectively.
o Record backlog at December 31, 2005 stood at $1.1 billion, an increase of
approximately 57 percent from backlog at December 31, 2004. Bookings for
the quarter and year ended December 31, 2005 were in excess of $300
million and $1.2 billion, respectively.
o Record full year 2005 revenues and diluted earnings per share were $844
million and $1.39, respectively, and exclusive of the tax benefit, net
earnings and earnings per diluted share were $32.7 million and $0.54, and
exclusive of the tax benefit and one time items were $34.4 million and
$0.57, respectively.
2
FOURTH QUARTER PERFORMANCE
For the fourth quarter, consolidated sales were $222.9 million, a $33
million or 17.6 percent increase over the fourth quarter of 2004.
Operating earnings for the fourth quarter of 2005 of $24.2 million
increased by 48 percent as compared to the same period last year and include the
$1.2 million impact of the accelerated vesting of employee stock options, and
hurricane-related costs and expenses of approximately $1.2 million. Excluding
these one time items, operating earnings and the operating margin for the
quarter would have been $26.6 million and 11.9 percent, respectively. The
operating margin of 10.9 percent in the fourth quarter of 2005 was 230 basis
points greater than the operating margin realized in the fourth quarter of 2004.
The substantial increase in operating earnings was driven by continued revenue
and earnings growth at each of B/E's commercial aircraft, distribution and
business jet segments.
Interest expense for the fourth quarter of 2005 of $14.4 million was $2.3
million lower than interest expense recorded in the same period in the prior
year. Interest expense decreased in the fourth quarter of 2005 as a result of
the early retirement of $200 million of senior subordinated notes during the
fourth quarter of 2004.
The company accelerated the recognition of its domestic deferred tax
asset during the fourth quarter of 2005, resulting in a tax benefit of
approximately $51.9 million. The deferred tax asset was recorded as a result of
the company's improving financial performance and outlook, as well as the
expected $20 million reduction in interest expense arising from the redemption
of $250 million of the company's 8% senior subordinated notes, which occurred in
January 2006.
Net earnings for the fourth quarter were $62.1 million or $0.96 per
diluted share, increases of $71.4 million and $1.13 per diluted share as
compared to 2004.
This release contains certain non-GAAP financial measures. For an
explanation of these financial measures and a reconciliation of these financial
measures to the most comparable GAAP financial measure see page 13.
FOURTH QUARTER SEGMENT DISCUSSION
Net sales by segment were as follows:
NET SALES
---------------------------------------------------
Three Months Ended December 31
($ in millions)
---------------------------------------------------
Percent
2005 2004 Change Change
---------------------------------------------------
Commercial aircraft $145.4 $133.5 $11.9 8.9%
Distribution 42.9 36.7 6.2 16.9%
Business jet 34.6 19.4 15.2 78.4%
---------------------------------------------------
Total $222.9 $189.6 $33.3 17.6%
3
The Commercial Aircraft Segment ("CAS") generated revenues of $145.4
million in the fourth quarter of 2005, up 8.9 percent versus the same period in
the prior year, primarily due to a higher sales volume of commercial aircraft
passenger cabin equipment, as well as engineering, integration and certification
services. The distribution segment delivered strong revenue growth of 16.9
percent in the fourth quarter of 2005, driven by a broad-based increase in
aftermarket demand for aerospace fasteners and continued market share gains. In
the business jet segment, revenues increased by 78.4 percent in the fourth
quarter of 2005, reflecting a substantial increase in shipments of super first
class products and the ongoing recovery of the business jet industry.
The following is a summary of the change in operating earnings by
segment:
OPERATING EARNINGS
---------------------------------------------------
Three Months Ended December 31
($ in millions)
---------------------------------------------------
Percent
2005 2004 Change Change
---------------------------------------------------
Commercial aircraft $13.7 $9.6 $4.1 42.7%
Distribution 8.4 6.4 2.0 31.3%
Business jet 2.1 0.3 1.8 600.0%
---------------------------------------------------
Total $24.2 $16.3 $7.9 48.5%
CAS operating earnings of $13.7 million increased by 42.7 percent
versus the same period in the prior year, reflecting a 34.5 percent incremental
operating margin on an 8.9 percent increase in sales. CAS operating margin for
the quarter expanded to 9.4 percent, a 220 basis point improvement over the same
period in the prior year. The CAS margin expansion was primarily the result of
an improved mix of products sold, ongoing manufacturing efficiencies and
operating leverage at the higher level of sales, offset somewhat by the
accelerated vesting of stock options. CAS backlog at year-end 2005 reached
another record level.
The distribution segment generated revenues of $42.9 million in the
fourth quarter of 2005, up 16.9 percent versus the same period in the prior
year, notwithstanding downtime due to fourth quarter hurricane activity.
Operating earnings at the distribution segment in the fourth quarter of 2005
were $8.4 million, 31.3 percent higher than the same period last year and
represented a 19.6 percent operating margin. The distribution segment's strong
operating performance was in spite of lost sales and overtime, weekend and
expedite costs due to hurricane activity in the fourth quarter.
The business jet segment generated fourth quarter revenues of $34.6
million, up 78.4 percent as compared to the fourth quarter of 2004. Operating
earnings at the business jet segment during the quarter of $2.1 were $1.8
million higher than operating earnings in the same period last year. The
substantial increase in operating earnings reflects the higher level of revenues
associated with increased production volumes in the new super first class
product line and an improving business jet industry. The business jet segment's
4
strong operating performance was in spite of five lost days of operations and
significant overtime and expedite costs due to hurricane activity in the fourth
quarter of 2005.
FULL YEAR 2005 RESULTS
B/E reported consolidated revenues of $844.1 million representing 15.1
percent organic growth over the prior year. Gross profit for 2005 was $295.6
million, an increase of $56.9 million or 23.8 percent versus 2004, as gross
margin expanded by 250 basis points to 35.0 percent. Operating earnings of $93.6
million for 2005 were up 45.3 percent versus the prior year primarily due to the
15.1 percent increase in revenues and a 230 basis point expansion in operating
margin to 11.1 percent of sales. The 45 percent increase in operating earnings
was achieved in spite of substantially higher product development and marketing
expenditures to support the record level of orders and backlog. Interest expense
of $59.3 million in 2005 decreased by $16.8 million as compared to 2004.
Earnings before taxes were $34.3 million, a $54.8 million improvement versus the
prior year. In December 2005, the company recognized its domestic deferred tax
asset which resulted in a tax benefit of $51.9 million in 2005 versus $1.5
million of tax expense in the prior year. Net earnings in 2005 were $84.6
million or $1.39 per diluted share, increases of $106.6 million and $1.92 per
diluted share versus 2004. Net earnings per diluted share exclusive of the tax
benefit were $0.54, (and exclusive of the tax benefit and one time items net
earnings per diluted share were $0.57 for the full year.)
Net sales by segment were as follows:
NET SALES
---------------------------------------------------
Year Ended December 31,
($ in millions)
---------------------------------------------------
Percent
2005 2004 Change Change
---------------------------------------------------
Commercial aircraft $550.0 $514.1 $35.9 7.0%
Distribution 173.9 144.2 29.7 20.6%
Business jet 120.2 75.2 45.0 59.8%
---------------------------------------------------
Total $844.1 $733.5 $110.6 15.1%
CAS generated revenues of $550.0 million in 2005, up $35.9 million or 7.0
percent versus 2004, driven by a higher sales volume of commercial aircraft
cabin interior equipment sales, as well as engineering, integration and
certification services. The distribution segment generated revenues of $173.9
million during 2005, up $29.7 million or 20.6 percent versus 2004, driven by a
broad-based increase in aftermarket demand for aerospace fasteners and continued
market share gains. The business jet segment generated revenues during 2005 of
$120.2 million, up $45.0 million or 59.8 percent, reflecting the increased
shipments of super first class products and the ongoing recovery of the business
jet industry.
5
The following is a comparison of operating earnings by segment:
OPERATING EARNINGS
---------------------------------------------------
Year Ended December 31,
($ in millions)
---------------------------------------------------
Percent
2005 2004 Change Change
---------------------------------------------------
Commercial aircraft $50.9 $39.8 $11.1 27.9%
Distribution 34.9 25.9 9.0 34.7%
Business jet 7.8 (1.3) 9.1 NM
---------------------------------------------------
Total $93.6 $64.4 $29.2 45.3%
CAS generated operating earnings of $50.9 million during 2005, up $11.1
million or 27.9 percent versus 2004, which represented a 30.9 percent
incremental operating margin. CAS operating margin for 2005 was 9.3 percent, up
160 basis points versus the prior year, reflecting the improved product mix and
ongoing manufacturing efficiencies. The distribution segment generated operating
earnings of $34.9 million during 2005, up $9.0 million or 34.7 percent which
represented a 30.3 percent incremental operating margin, as operational
productivity increased 10 percent versus the prior year. The business jet
segment generated operating earnings of $7.8 million during 2005, up $9.1
million versus the prior year. The business jet segment's 2005 incremental
operating margin of 20.2 percent reflects the initial shipments of super first
class products along with the incremental operating costs associated with
hurricane activity during the fourth quarter of 2005.
RECENT EQUITY OFFERING, DEBT PREPAYMENT, LIQUIDITY AND CASH FLOW MEASURES
In December 2005, the company successfully raised approximately $265
million in cash from the sale of 14.9 million shares of common stock. The
company used the proceeds in January 2006 to redeem all of its $250 million of
senior subordinated notes due 2008.
At December 31, 2005, the company's net debt-to-net capital ratio was
36.2 percent. Net debt at December 31, 2005 stood at $322.9 million, which
represents total debt of approximately $678.9 million, less cash and cash
equivalents, reflecting the proceeds from the December 2005 common stock
offering, of approximately $356.0 million. After giving effect to the January
2006 redemption of $250 million of senior subordinated notes, at December 31,
2005, total debt was approximately $429 million, with cash and cash equivalents
of approximately $99 million.
At December 31, 2005, there were no bank borrowings outstanding and no
principal payments are due on the company's long-term debt until 2010.
Depreciation and amortization for the three months ended December 31, 2005 and
2004 were $6.9 million and $7.4 million, respectively; such amounts for the
years ended December 31, 2005 and 2004 were $28.6 million and $28.4 million,
respectively. Capital expenditures for the years ended December 31, 2005 and
2004 were $16.9 million and $14.5 million, respectively.
6
RECENT PROGRAM WINS AND RECORD BACKLOG BOLSTER OUTLOOK
The company generated record bookings and backlog during 2005 driven
primarily by aftermarket orders from international carriers for premium class
retrofits of their long-haul wide-body aircraft. Bookings for the year of
approximately $1.2 billion were up over $300 million or 33% versus the prior
year and drove the company's backlog to a record $1.1 billion, representing a
57% increase over the 2004 backlog of $700 million.
"The company's record bookings and backlog performance during 2005 was
due to the strength of the international premium class retrofit market, market
share gains made possible by our ongoing investments in new product development
and through the coordinated execution of our account management and business
unit management teams. We successfully introduced our super first class product
offerings during 2005. Our product innovation capabilities and solid execution
were instrumental as we established ourselves as the industry leader in this
rapidly growing new market. Importantly, many of the major program awards during
2005 also represent significant market share gains with some of the world's
largest airlines, all of which have large fleets of twin-aisle international
aircraft. We expect these program awards to expand our market shares, as these
programs begin to deliver in 2006 and beyond, as our customers begin to take
delivery of larger numbers of new aircraft, and as they expand their existing
retrofit programs to address their coach class cabins," commented Amin J.
Khoury, Chairman and Chief Executive Officer of B/E Aerospace.
Significant program wins for 2005 included:
o A British Airways $150 million+ fleet-wide business class retrofit
program covering all long-haul aircraft
o A $155 million retrofit program for a major international airline
covering both wide-body premium and premium coach cabins, and program
integration services
o A $100 million super first class program for Emirates Airlines for their
A380 and B777 aircraft
o A Qantas Airways $90 million retrofit covering B747 business class plus
first class and business class on A380 aircraft
o There were also a number of additional significant programs for Air
France, Lufthansa, Japan Airlines, and Korean Airlines, all among the
largest airlines in the world.
"We are particularly encouraged by the continued strong RFQ activity and
ongoing discussions with our customers. Virtually every major international
airline is either in the process of upgrading the premium class compartments of
their international fleets of twin-aisle aircraft or are in discussions to do
so. The upgrade discussions include reconfiguration and integration engineering
programs, premium class seating, food and beverage preparation and storage
equipment and mood lighting products. Additionally, the international airlines
are now beginning to address not only their coach compartment retrofit needs but
also their premium class and coach class requirements for their new buy
wide-body aircraft. Cabin interiors for
7
wide-body aircraft require five to eight times the dollar value of the cabin
interior equipment used to outfit narrow-body aircraft. Industry experts
anticipate that Boeing and Airbus will ship approximately 950 wide-body and
super wide-body aircraft over the four year period from 2007 through 2010. The
scheduled deliveries of these wide-body aircraft coupled with the strong demand
for aftermarket retrofit programs and the continued recovery in the business jet
sector bode well for continued strong revenue growth for at least the next three
years," concluded Mr. Khoury.
FINANCIAL GUIDANCE
Financial guidance is now as follows:
o For 2006, management expects organic revenue growth of approximately 20%
to about $1 billion, operating earnings growth of approximately 40%
driven by the higher level of sales and an approximate 200 basis point
expansion in operating margin, and EPS of approximately $1.12 per diluted
share, with first quarter EPS of approximately $0.15 (including debt
extinguishment costs of $1.8 million).
o For 2007, revenues are expected to grow at a double digit rate, and
operating earnings are expected to grow by approximately 35 percent
driven by strong revenue growth and a further significant expansion in
operating margin.
This news release contains forward-looking statements within the meaning
of Section 27A of the Securities Act of 1933 and Section 21E of the Securities
Exchange Act of 1934. Such forward-looking statements involve risks and
uncertainties. B/E's actual experience may differ materially from that
anticipated in such statements. Factors that might cause such a difference
include those discussed in B/E's filings with the Securities and Exchange
Commission, including but not limited to its most recent proxy statement, Form
10-K and Form 10-Q. For more information, see the section entitled "Forward-
Looking Statements" contained in B/E's Form 10-K and in other filings. The
forward-looking statements included in this news release are made only as of the
date of this news release and, except as required by federal securities laws, we
do not have any obligation to publicly update or revise any forward-looking
statements to reflect subsequent events or circumstances.
8
About B/E Aerospace, Inc.
B/E Aerospace, Inc. is the world's leading manufacturer of aircraft cabin
interior products, and a leading aftermarket distributor of aerospace fasteners.
B/E designs, develops and manufactures a broad range of products for both
commercial aircraft and business jets. B/E manufactured products include
aircraft cabin seating, lighting, oxygen, and food and beverage preparation and
storage equipment. The company also provides cabin interior design,
reconfiguration and passenger-to-freighter conversion services. Products for the
existing aircraft fleet - the aftermarket - generate about 60 percent of sales.
B/E sells and supports its products through its own global direct sales and
product support organization. For more information, visit B/E's website at
www.beaerospace.com.
9
*T*
B/E Aerospace, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
THREE MONTHS ENDED
--------------------------------
December 31, December 31,
(In millions, except per share data) 2005 2004
- --------------------------------------------------------------------------------
Net sales $222.9 $189.6
Cost of sales 144.7 126.4
------ ------
Gross profit 78.2 63.2
Gross margin 35.1% 33.3%
Operating expenses:
Selling, general and administrative 38.6 30.8
Research, development and engineering 15.4 16.1
------ ------
Total operating expenses 54.0 46.9
------ ------
Operating earnings 24.2 16.3
Operating margin 10.9% 8.6%
Interest expense, net 14.4 16.7
Loss on debt extinguishment -- 8.8
------ ------
Earnings (loss) before income taxes 9.8 (9.2)
Income tax (benefit) provision (52.3) 0.1
------ ------
NET EARNINGS (LOSS) $ 62.1 $ (9.3)
====== ======
NET EARNINGS (LOSS) PER COMMON SHARE
Basic $ 0.99 $(0.17)
====== ======
Diluted $ 0.96 $(0.17)
====== ======
Common shares:
Basic
Weighted average 63.0 55.2
End of period 74.3 56.6
Diluted
Weighted average 64.9 55.2
End of period 76.2 56.6
10
*T*
B/E Aerospace, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(unaudited)
YEAR ENDED
--------------------------------
December 31, December 31,
(In millions, except per share data) 2005 2004
- --------------------------------------------------------------------------------
Net sales $844.1 $733.5
Cost of sales 548.5 494.8
------ ------
Gross profit 295.6 238.7
Gross margin 35.0% 32.5%
Operating expenses:
Selling, general and administrative 136.4 119.2
Research, development and engineering 65.6 55.1
------ ------
Total operating expenses 202.0 174.3
------ ------
Operating earnings 93.6 64.4
Operating margin 11.1% 8.8%
Interest expense, net 59.3 76.1
Loss on debt extinguishment -- 8.8
------ ------
Earnings (loss) before income taxes 34.3 (20.5)
Income tax (benefit) provision (50.3) 1.5
------ ------
NET EARNINGS (LOSS) $ 84.6 $(22.0)
====== ======
NET EARNINGS (LOSS) PER COMMON SHARE
Basic $ 1.44 $(0.53)
====== ======
Diluted $ 1.39 $(0.53)
====== ======
Common shares:
Basic
Weighted average 58.8 41.7
End of period 74.3 56.6
Diluted
Weighted average 60.8 41.7
End of period 76.2 56.6
11
*T*
B/E Aerospace, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited; in millions)
December 31, December 31,
2005 2004
-------------- --------------
ASSETS
Current assets:
Cash and cash equivalents $ 356.0 $ 76.3
Accounts receivable, net 131.9 91.6
Inventories, net 223.7 197.8
Other current assets 15.1 13.4
-------- --------
Total current assets 726.7 379.1
Long-term assets 699.8 645.7
-------- --------
$1,426.5 $1,024.8
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Total current liabilities $ 170.8 $ 154.1
Long-term liabilities 686.1 687.9
-------- --------
856.9 842.0
Total stockholders' equity 569.6 182.8
-------- --------
$1,426.5 $1,024.8
======== ========
12
*T*
B/E Aerospace, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited; in millions)
YEAR ENDED
--------------------------------
December 31, December 31,
2005 2004
--------------------------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net earnings (loss) $ 84.6 $(22.0)
Adjustments to reconcile net earnings
(loss) to net cash flows provided by
operating activities:
Depreciation and amortization 28.6 28.4
Provision for doubtful accounts 0.5 1.0
Non-cash employee benefit plan contributions 2.9 2.3
Loss on disposal of property and equipment 1.0 --
Loss on debt extinguishment -- 8.8
Share-based compensation expense 1.2 --
Deferred income taxes (51.9) --
Excess tax benefits from share-based payments 28.0 --
Changes in operating assets and liabilities, net
of acquisitions (82.3) (18.2)
------ ------
Net cash flows provided by operating activities 12.6 0.3
------ ------
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures (16.9) (14.5)
Proceeds from sale of property and equipment -- 0.5
Acquisitions, net of cash acquired -- (12.5)
Other, net 1.6 (0.3)
------ ------
Net cash flows used in investing activities (15.3) (26.8)
------ ------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from issuance of stock, net of
expenses 285.1 162.3
Payment of debt origination costs and
repayment costs -- (6.3)
Principal payments on long-term debt (0.9) (202.0)
------ ------
Net cash flows provided by (used in) financing
activities 284.2 (46.0)
------ ------
Effect of exchange rate changes on cash flows (1.8) 1.2
------ ------
Net increase (decrease) in cash and cash
equivalents 279.7 (71.3)
Cash and cash equivalents at beginning of year 76.3 147.6
------ ------
Cash and cash equivalents at end of year $356.0 $ 76.3
====== ======
13
B/E Aerospace, Inc.
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
In the fourth quarter of 2005, the company incurred a one time charge of $1.2
million related to the accelerated vesting of employee stock options and $1.2
million of costs related to lost sales, overtime, weekend costs and expedite
costs due to hurricane activity during the fourth quarter of 2005 (together, the
"one time items"). In addition, in the fourth quarter of 2005, the company
accelerated the recognition of its domestic deferred tax asset, resulting in a
tax benefit of approximately $51.9 million (the "tax benefit"). The deferred tax
asset was recorded as a result of the company's improving financial performance
and outlook as well as the expected $20 million reduction in interest expense
arising from the January 2006 redemption of $250 million of the company's 8%
senior subordinated notes.
This release includes (i) operating earnings and operating margin adjusted to
exclude the one time items, (ii) net earnings and net earnings per diluted share
adjusted to exclude the tax benefit, and (iii) net earnings and net earnings per
diluted share adjusted to exclude the tax benefit and the one time items. These
financial measures are all non-GAAP financial measures as defined by the
Securities and Exchange Commission in Regulation G. We use each of the
aforementioned financial measures to evaluate our operating earnings, operating
margin, net earnings, and net earnings per diluted share as compared to prior
periods and to assess trends in the operational strength and performance of our
business. We believe these financial measures are relevant and useful for
investors because they allow investors to have a better understanding of our
operating performance and makes it easier to compare our operating performance
to our operating performance in prior periods that were not affected by the one
time items and the tax benefit.
These financial measures should not be viewed as a substitute for or superior to
operating earnings, operating margin, net earnings or net earnings per diluted
share or other data prepared in accordance with GAAP as a measure of our
operating performance. The financial measures are not prepared using GAAP.
14
Pursuant to the requirements of Regulation G, we provide the following table
which reconciles adjusted operating earnings, operating margin, net earnings,
and net earnings per diluted share to the most directly comparable GAAP measure.
Quarter Year
(In millions, except per share data) ended ended
-------------------------
December 31, 2005
-------------------------
Operating earnings as reported $24.2 $93.6
Operating margin as reported (1) 10.9% 11.1%
Costs associated with accelerated vesting of employee
stock options 1.2 1.2
Hurricane-related costs 1.2 1.2
----- -----
Operating earnings as adjusted $26.6 $96.0
===== =====
Operating margin as adjusted 11.9% 11.4%
Net earnings as reported $62.1 $84.6
Less tax benefit associated with recognition of domestic
deferred tax asset (51.9) (51.9)
----- -----
Net earnings as adjusted for tax benefit $10.2 $32.7
===== =====
Net earnings per diluted share as adjusted for tax
benefit $0.16 $0.54
===== =====
Net earnings as reported $62.1 $84.6
Less tax benefit associated with recognition of domestic
deferred tax asset (51.9) (51.9)
Costs associated with accelerated vesting of employee
stock options 1.2 1.2
Hurricane-related costs 1.2 1.2
Income tax expense related to one time items (0.7) (0.7)
----- -----
Net earnings adjusted for tax benefit and one time items $11.9 $34.4
===== =====
Net earnings per diluted share adjusted for tax benefit
and one time items $0.18 $0.57
===== =====
(1) Operating margin is operating earnings as a percentage of net sales
# # #