BLOOMFIELD, Conn., Aug. 3 /PRNewswire-FirstCall/ -- Kaman Corp.
(Nasdaq: KAMN) today reported financial results for the second quarter and
six months ended June 30, 2006.
Net earnings for the second quarter of 2006 were $7.5 million, or $0.31
per share diluted on the basis of 24.9 million diluted shares outstanding,
compared to $2.8 million, or $0.12 per share diluted based on 23.7 million
diluted shares outstanding in the second quarter of 2005. Results for the
second quarter include additional loss reserves needed to cover anticipated
costs to complete the company's SH-2G(A) contract for Australia. Net sales
for the second quarter of 2006 were $293.0 million, compared to $271.3
million in the prior year quarter. The company paid a normal quarterly
dividend at the rate of $0.125 per share.
For the first six months of 2006 the company reported net earnings of
$13.4 million, or $0.55 per share diluted, compared to net earnings of $7.5
million, or $0.33 per share diluted in the first six months of 2005. The
2006 six-month results include additional loss reserves taken in both the
first and second quarters for the Australia program partially offset by a
first quarter adjustment to capitalize in-bound freight into inventory in
the Industrial Distribution segment. The 2006 six-month results also
include deductible and non-deductible expenses for stock appreciation
rights in the first quarter that were partially offset in the second
quarter, and recoveries in the second quarter of a portion of the legal
expenses associated with the 2005 recapitalization litigation. Amounts for
each of these items are provided in this release along with prior year
amounts, as appropriate. Six-month net sales for 2006 were $589.6 million,
compared to $534.6 million in the 2005 period.
Paul R. Kuhn, chairman, president and chief executive officer, said,
"We are very pleased with the continued strong performance of the company
in the 2006 second quarter. The new business wins we are achieving continue
to validate the strategies we have put in place for each of our segments.
The realignment of our Aerospace business at the beginning of 2005 is
working and we are seeing both growth and improving margins for most of
this segment. We have also experienced strong growth and improving margins
in our Industrial Distribution segment. At the segment level, only Music
showed evidence of weakness in the quarter. Overall, this has been a time
of progress on many fronts. Kaman has come a long way over the past few
years, and there is more we can achieve in the areas of cost-effectiveness,
performance and efficiency that will benefit the company in the markets we
serve and reward our investors."
"Kaman Reports 2006 Second Quarter, Six Month Results"
August 3, 2006
Summary of Segment Information
(In millions)
For the Three Months For the Six Months
Ended Ended
June 30, July 1, June 30, July 1,
2006(1) 2005(1) 2006(1) 2005(1)
Net sales:
Aerospace $74.4 $76.0 $148.0 $141.7
Industrial
Distribution 170.5 157.5 341.1 313.5
Music 48.1 37.8 100.5 79.4
293.0 271.3 589.6 534.6
Operating income:
Aerospace 10.7 9.5 20.7 17.2
Industrial
Distribution 9.3 8.4 20.1 16.9
Music 1.6 1.9 2.9 4.4
Net gain on
sale or disposal
of assets - .1 .1 .1
Corporate
expense(2) (7.6) (12.6) (18.1) (22.1)
Operating income: 14.0 7.3 25.7 16.5
Interest expense, net (1.6) (.6) (2.9) (1.4)
Other expense, net (.3) (.5) (.6) (.7)
Earnings before
income taxes $12.1 $6.2 $22.2 $14.4
(1) The company has a calendar year-end; however, its first three fiscal
quarters follow a 13-week convention, with each quarter ending on a
Friday. The second quarter for 2006 and 2005 ended on June 30, 2006
and July 1, 2005, respectively.
(2) "Corporate Expense" decreased for the quarter and six months ended
June 30, 2006 compared to the same periods of 2005, as shown below:
For the three months For the six months
ended ended
June 30, July 1, June 30, July 1,
2006 2005 2006 2005
Corporate expense
before breakout items $(6.2) $(5.6) $(13.1) $(12.9)
Breakout items:
Stock appreciation
rights .8 (3.9) (.5) (3.9)
Stock option expense (.3) - (.6) -
Pension expense (1.0) (1.4) (1.7) (2.8)
Supplemental
employees' retirement plan (1.4) (.7) (2.7) (1.5)
Consulting/Legal-
recapitalization .5 (1.0) .5 (1.0)
Corporate expense - total $(7.6) $(12.6) $(18.1) $(22.1)
REPORT BY SEGMENT
Aerospace Segment
The Aerospace segment generated 2006 second quarter operating income of
$10.7 million, compared to $9.5 million in the second quarter of 2005.
Second quarter results for 2006 and 2005 include $2.8 million and $3.1
million respectively in pretax charges for additional loss reserves needed
to cover anticipated costs to complete the company's SH-2G(A) helicopter
program for Australia. Segment sales for the second quarter of 2006 were
$74.4 million, compared to $76.0 million in the comparable 2005 period.
For the first half of 2006 the segment had operating income of $20.7
million, compared to income of $17.2 million in the first half of 2005. The
2006 and 2005 first half results include the impact of $5.3 million and
$3.3 million respectively in pretax charges for the Australia program.
Segment sales for the first half of 2006 were $148.0 million, compared to
$141.7 million in the first half of 2005.
Mr. Kuhn said, "Operations at the company's Aerostructures plants in
Jacksonville, Fla. and Wichita, Kans., its missile fuzing plant in
Middletown, Conn. and its Kamatics/RWG operations in Bloomfield, Conn. and
Dachsbach, Germany all experienced expanded levels of business. New
contracts have also improved prospects for the Helicopters Division
facilities in Bloomfield, yet results continue to reflect losses we have
incurred on the Australian program. At Kaman Dayron in Orlando, Fla., we
are encouraged by the progress we are making in increasing production
levels for the Joint Programmable Fuze (JPF) product line." A review of the
principal business units follows:
Aerostructures Division:
The Aerostructures Division had net sales of $17.1 million in the
second quarter of 2006, compared to $13.4 million in the second quarter of
2005. Sales for the first half of 2006 were $34.0 million, compared to
$26.3 million in the first half of 2005.
The Aerostructures Division produces subcontract assemblies and detail
parts for commercial and military aircraft programs, including several
models of Boeing commercial airliners, the C-17 military transport (on
contract through mid-2007, and which remained the division's largest
program for the quarter), the Sikorsky BLACK HAWK helicopter and several
other programs. Operations involving the use of metals are conducted
principally at the company's Jacksonville facility, while operations
involving composite materials are conducted principally at the company's
Wichita facility.
At the Jacksonville facility, work proceeded on production of cockpits
for the Sikorsky BLACK HAWK helicopter. Eleven cockpits were delivered in
the second quarter of 2006, bringing total deliveries to 39 as of June 30,
2006. The contract currently covers approximately 80 cockpits for an
estimated value of $26 million, depending upon which models are ultimately
ordered. The original multi-year contract has follow-on options that, if
fully exercised, could include the fabrication of up to a total of 349
units and bring the total potential value to approximately $100 million or
more depending upon the models that are ultimately ordered.
On April 1, 2006, Spirit AeroSystems awarded the company's Wichita
facility a multi-year contract for production of the composite flight deck
floor for the Boeing 787 Dreamliner. The contract is valued at
approximately $15.0 million. During the quarter, Wichita continued to
process previously announced orders from Sikorsky Aircraft Corporation
involving MH-92 helicopters and Shenyang Aircraft Corporation involving the
Boeing 787 Dreamliner, while continuing production on commercial and
military aircraft composite programs for Boeing, Bell, and others.
Fuzing Division:
The Fuzing Division had net sales in the 2006 second quarter of $13.6
million, compared to $15.0 million in second quarter of 2005. The reduction
in sales for the quarter was primarily due to the interruption of 40mm fuze
production in the first quarter of 2006 while the division worked through
administrative issues with the customer. Production of the 40mm product
line resumed in the second quarter of 2006. The effect of the interruption
was partially offset by increases in both missile fuzing and JPF program
sales in the second quarter. Fuzing Division net sales for the first half
of 2006 were $31.8 million, compared to $27.8 million in the first half of
2005. The increase in sales is due to increased production and shipments at
both the Middletown facility for both fuzing and memory programs and the
Dayron facility, specifically related to the JPF program. These results
were partially offset by a decrease in the 40mm program production as
discussed above.
The division manufactures safe, arm and fuzing devices for major
missile programs at its facility in Middletown, and for major bomb
programs, including the JPF, at its Dayron facilities in Orlando. In
addition, the company manufactures precision measuring and mass memory
systems for a range of military and commercial applications at the
Middletown facility. Principal customers for the division include the U. S.
military, Boeing, General Dynamics, Lockheed Martin, and Raytheon.
At Dayron, progress continued on work to resolve issues related to the
JPF program manufacturing process and supply chain. While this is underway,
production has been and may continue to be periodically interrupted.
Meanwhile, the program continues to develop in the market. In April 2006,
the government signed an $8.6 million contract with the division for a
facilitization project that, among other things, will result in increased
production efficiencies and the installation of a second site JPF
production line at the company's Middletown facility. In June 2006 the Air
Force awarded the division a $6.7 million firm-fixed-price contract
modification to provide seven foreign countries with JPF systems to meet
their anticipated munitions requirements. Work on this contract is
scheduled for completion in the fourth quarter of 2007. These two
agreements bring the total value of JPF contracts with the U.S. Government
from inception to date to $73.9 million. The company believes that the JPF
program will be increasingly important in the years ahead as deliveries to
the U.S. and foreign militaries increase, and as operating efficiencies
improve.
Generally, revenue is recorded on delivery of the product to the
customer. Most Fuzing Division programs require fuzes to be shipped in
lots, and sales for the various programs will vary based on the number of
lots that were delivered during a quarter. Therefore quarter-by-quarter
comparisons will not always be meaningful.
Helicopters Division:
The Helicopters Division had net sales of $15.2 million in the second
quarter of 2006, compared to $23.3 million (including $7.3 million from the
sale of two K-MAX helicopters) in the comparable 2005 period. Helicopters
Division net sales for the first half of 2006 were $26.7 million, compared
to $38.5 million (including $10.9 million from the sale of three K-MAX
helicopters) in the first half of 2005. There have been no sales of K-MAX
aircraft in 2006. Operations are conducted primarily from the Bloomfield
facilities.
The division supports and markets its Kaman SH-2G maritime helicopters
operating with foreign militaries and K-MAX "aerial truck" helicopters
operating with government and commercial customers in several countries.
The division also markets its helicopter engineering expertise and performs
subcontract programs for other manufacturers. SH-2G helicopters are
currently operating with the governments of Egypt, New Zealand, and Poland.
During the quarter, the company's long-delayed SH-2G(A) helicopter
program for the Commonwealth of Australia entered Formal Qualification
Testing (FQT) of the software for the Integrated Tactical Avionics System
(ITAS) at the software facilities of a subcontractor, Computer Sciences
Corporation (CSC) - Australia in Sydney. The task of completing the
contract has required additional charges to the contract loss reserve of
$2.5 million and $2.8 million in the first and second quarters of 2006
respectively.
The company continues to work with the Royal Australian Navy (RAN) to
resolve previously reported flight safety questions raised by an anomalous
flight condition experienced by the RAN in the first quarter that resulted
in the grounding of the aircraft. The condition has been attributed to the
aircraft's airspeed sensor. The company has determined the cause of the
anomaly, is delivering a replacement component for the airspeed sensors
and, with the RAN, is developing an approach to resolve their concerns.
There is a significant history of safe operations for this aircraft type
with several nations, and the company is confident that the same will be
the case for the Australian aircraft. Following resolution of the RAN's
concerns and successful completion of the FQT, it is anticipated that final
acceptance procedures will get underway for the fully capable aircraft
later this year.
Commenting on the contract, Mr. Kuhn said, "Achieving the level of
technical innovation specified in the contract has taken longer than
expected, leaving both the company and the customer disappointed in the
delay. Now after five additional years of effort that involved the
replacement of the initial software subcontractor with a Northrop Grumman
team and a CSC Australian team, the software development has been
completed. Formal qualification testing of the software is underway in
Australia with Commonwealth participation, while flight demonstrations have
commenced here in Bloomfield, also with customer participation. We believe
the Australian Government can look forward to receiving a fully capable
helicopter that will serve the Royal Australian Navy with the same high
degree of distinction that has characterized this aircraft in service with
the U.S. Navy and the governments of Egypt, New Zealand and Poland.
"In the wake of the political and media attention given to this program
following the airspeed sensor signal incident, the incoming Australian
Minister of Defence has ordered the defence ministry to assess the program
along with potential alternatives and provide him with recommendations. We
will be supportive of the customer in their review and believe that working
through the remaining issues is the most timely and cost-effective route to
fulfilling the RAN's mission requirements," Kuhn said.
Reporting on other developments, the division is currently working
under a contract initially valued at $5.3 million and since increased by
$1.5 million for scope changes to provide depot level maintenance for up to
four of nine SH-2G(E) helicopters delivered to the government of Egypt
during the 1990s. Work on the second of these aircraft was competed during
the quarter, and is now underway on the third aircraft. Late in the second
quarter of 2006, the company received a $3.6 million contract from the
Naval Air Systems Command (NAVAIR) to provide for long-lead procurement and
other work over the next three months related to planned upgrades to the
Egyptian aircraft.
Kamatics Subsidiary:
Kamatics (including RWG, the company's German aircraft bearing
manufacturing arm) generated net sales of $27.5 million in the second
quarter of 2006, compared to $22.8 million in the second quarter of 2005.
Net sales for the first half of 2006 were $53.7 million, compared to $45.8
million in the 2005 first half. Operations are conducted at company
facilities in Bloomfield, Connecticut and Dachsbach, Germany.
Kamatics' proprietary self-lubricating bearings are currently in use in
almost all military and commercial aircraft produced in North and South
America and Europe, and are market-leading products for applications
requiring highly sophisticated engineering and specialization in the
airframe bearing market. Orders, shipments and backlogs for both Kamatics
and RWG were all at record levels for the quarter, with activity from the
commercial aviation sector, in particular, driving higher than expected
results for the quarter. The company continues to see growth opportunities
in the market and is in the process of adding approximately 30,000 square
feet of additional capacity at the Bloomfield facility to accommodate the
business. The new space is scheduled to come on line by early 2007.
Other Aerospace Matters:
The Electro-Optics Development Center (EODC) in Tucson generated the
balance of segment sales for the second quarter and six-month periods.
As previously announced, a jury verdict was reached on May 17, 2006 in
the company's breach of contract suit against the University of Arizona.
The jury found in favor of Kaman on its claim that the University breached
the contract between the parties and also found in favor of Kaman and
against the University on the University's counterclaim for breach of
contract. No damages were awarded to either party. The University had
requested that the judge overturn the jury verdict and grant a new trial.
After a hearing held on July 20, 2006, the judge denied the University's
request.
Management continues its discussions with NAVAIR regarding the
potential purchase of the portion of the Bloomfield campus that the company
currently leases from NAVAIR and has operated for several decades for the
principal purpose of performing U.S. government contracts. On July 31,
2006, the company submitted an Offer to Purchase (OTP) to NAVAIR and the
General Services Administration and management believes that it will now be
submitted to the U.S. government's formal review process, which could take
up to two months to complete. The OTP provides that the company will assume
all responsibility for environmental remediation of the facility as
necessary to satisfy the Connecticut Department of Environmental Protection
(CTDEP) under the Connecticut Transfer Act as consideration for transfer of
the property. The company would not assume responsibility for the
environmental remediation until after the property has been transferred to
the company, which management estimates would take between 3 and 6 months
following acceptance of the OTP.
The company also continues to work with government and environmental
authorities to prepare the closed Moosup, Connecticut facility for eventual
sale.
Industrial Distribution Segment
The Industrial Distribution segment had operating income of $9.3
million for the second quarter of 2006, compared to $8.4 million in the
second quarter of 2005. Net sales for the segment were $170.5 million in
the 2006 second quarter, compared to $157.5 million in the comparable prior
year period.
For the 2006 first half, the segment had operating income of $20.1
million, compared to $16.9 million in the first half of 2005. Net sales for
the first half of 2006 were $341.1 million, compared to $313.5 million in
the first half of 2005, with all of the increase representing organic
growth. In the first quarter of 2006, it was determined that in-bound
freight costs were not being included in inventory consistent with our
other businesses. This resulted in an adjustment that increased operating
income for the 2006 first quarter and six-month periods by $1.6 million.
Mr. Kuhn said, "The Industrial Distribution segment continued its
strong performance for the quarter, achieving gains in market share and
margin improvement driven by a strong focus in each of these areas. Sales
to an expanding book of national account business grew at approximately
twice the rate of the base business. Overall, U.S. industrial activity
remained a positive factor for the segment despite the dampening effect of
multiple interest rate increases by the Federal Reserve. The West Region
remained the strongest contributor with robust sales in the mining, cement
and wallboard industries, but noted a slowdown in the roofing industry. The
region also benefited from continued activity in energy exploration and
production. The Central Region also produced good sales activity with the
food processing industry contributing solidly. Sales to OEM customers
provided strength in the East Region. The company continues to review
acquisition opportunities that would expand the geographic footprint of the
segment while adding to the business base and enhancing the national
account effort."
Kaman is the third largest North American industrial distributor
serving the bearings, electrical/mechanical power transmission, fluid
power, motion control and materials handling markets. The segment offers
almost two million items, as well as value-added services, to a base of
more than 50,000 customers spanning nearly every sector of industry.
Segment operations are headquartered in Windsor, Connecticut and conducted
from approximately 200 locations in the U.S., Canada and Mexico.
Music Segment
The Music segment had second quarter operating income of $1.6 million
for 2006, compared to $1.9 million in the comparable 2005 period. Segment
net sales for the second quarter of 2006 were $48.1 million, including
$11.2 million from the August 2005 acquisition of Musicorp, compared to
$37.8 million in the comparable 2005 period.
For the first half of 2006 the segment had operating income of $2.9
million, compared to $4.4 million in the first half of 2005. Net sales for
the first half of 2006 were $100.5 million, including $23.3 million from
Musicorp, compared to $79.4 million in the first half of 2005.
Mr. Kuhn said, "Following a slow first quarter in which many of our
customers worked off excess inventories remaining from the 2005 holiday
sales season, second quarter results were also disappointing as the
consumer buying environment remained clouded by the high cost of fuel,
higher monthly minimum credit card payments, and the effect of increasing
interest rates. Traditionally, the second half of the year is stronger as
our customers stock for the upcoming back-to-school and holiday selling
seasons. We continue to watch for signs of consumer confidence and spending
patterns as these factors will be important indicators of our probable
results for the segment in the second half."
The integration of Musicorp continued with the closing of a third
Musicorp warehouse completed in July 2006. In addition, certain planned
personnel reductions were accelerated. In the current weak market
environment, the larger retailers are tending to do somewhat better than
the smaller retailers. Musicorp operations have been impacted to a greater
degree than the base business due, in part, to its higher concentration of
smaller retailers.
Kaman is the largest independent distributor of musical instruments and
accessories in the United States, offering more than 20,000 products for
amateurs and professionals. Operations are headquartered in Bloomfield,
Connecticut and conducted from manufacturing plants in New Hartford,
Connecticut and Scottsdale, Arizona, and from strategically placed
warehouse facilities and offices that cover the North American market.
Concluding Remark
Mr. Kuhn concluded, "As we look ahead to the remaining months of the
year, we believe the market environment will remain positive for military
and commercial Aerospace orders and for the Industrial Distribution
segment. The environment for the Music segment is more difficult to assess,
and will be dependent on the level of consumers' confidence as we enter the
traditional selling seasons. In whatever economic environment, we believe
the diversified nature of our business will be a positive factor in our
performance."
A conference call has been scheduled for tomorrow, August 4, 2006 at
10:00 a.m. (EDT). Listeners may access the call live over the Internet
through a link on the home page of the company's website at
http://www.kaman.com.
Forward-Looking Statements
This release may contain forward-looking information relating to the
company's business and prospects, including the Aerospace, Industrial
Distribution and Music businesses, operating cash flow, and other matters
that involve a number of uncertainties that may cause actual results to
differ materially from expectations. Those uncertainties include, but are
not limited to: 1) the successful conclusion of competitions for government
programs and thereafter contract negotiations with government authorities,
both foreign and domestic; 2) political conditions in countries where the
company does or intends to do business; 3) standard government contract
provisions permitting renegotiation of terms and termination for the
convenience of the government; 4) domestic and foreign economic and
competitive conditions in markets served by the company, particularly
defense, commercial aviation, industrial production and consumer market for
music products; 5) resolution of outstanding issues and thereafter
satisfactory completion of the Australian SH-2G(A)program; 6) receipt and
successful execution of production orders for the JPF U.S. government
contract including the exercise of all contract options and receipt of
orders from foreign militaries, as both have been assumed in connection
with goodwill impairment evaluations; 7) satisfactory resolution of i)
warranty issues and the DCIS investigation related to the FMU-143 program
and ii) supplier-related issues hindering the FMU-139 program, at Dayron;
8) maintenance of adequate business base in the Aerospace segment in order
to absorb overhead and general and administrative expenses; 9) satisfactory
results of negotiations with NAVAIR concerning purchase of the company's
leased facility in Bloomfield, Connecticut; 10) continued support of the
existing K-MAX helicopter fleet, including sale of existing K-MAX spare
parts inventory and in 2007, availability of a redesigned clutch assembly
system; 11) cost growth in connection with environmental remediation
activities at the Moosup facility and such potential activities at the
Bloomfield facility; 12) profitable integration of acquired businesses into
the company's operations; 13) changes in supplier sales or vendor incentive
policies; 14) the effect of price increases or decreases; 15) pension plan
assumptions and future contributions; 16) continued availability of raw
materials in adequate supplies; 17) the effects of currency exchange rates
and foreign competition on future operations; 18) changes in laws and
regulations, taxes, interest rates, inflation rates, general business
conditions and other factors; and 19) other risks and uncertainties set
forth in the company's annual, quarterly and current reports, and proxy
statements. Any forward-looking information provided in this release should
be considered with these factors in mind. The company assumes no obligation
to update any forward-looking statements contained in this release.
KAMAN CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(In thousands except per share amounts)
For the Three Months For the Six Months
Ended Ended
June 30, July 1, June 30, July 1,
2006 2005 2006 2005
Net sales $292,967 $271,263 $589,604 $534,569
Costs and expenses:
Cost of sales 212,462 200,573 427,754 392,984
Selling, general
and administrative
expense 67,008 64,023 137,082 126,201
Net gain on sale
or disposal
of assets (43) (93) (56) (93)
Other operating
income (452) (525) (823) (983)
Interest
expense, net 1,630 638 2,888 1,350
Other expense,
net 303 470 563 708
280,908 265,086 567,408 520,167
Earnings before
income taxes 12,059 6,177 22,196 14,402
Income tax expense (4,573) (3,420) (8,790) (6,940)
Net earnings $7,486 $2,757 $13,406 $7,462
Net earnings per
share:
Basic $.31 $.12 $.56 $.33
Diluted $.31 $.12 $.55 $.33
Average shares
outstanding:
Basic 24,031 22,815 23,984 22,797
Diluted 24,880 23,693 24,883 23,671
Dividends declared
per share $.125 $.125 $.25 $.235
KAMAN CORPORATION AND SUBSIDIARIES
Condensed Consolidated Balance Sheets(In thousands)
June 30, December 31,
2006 2005
Assets
Current assets:
Cash and cash equivalents $13,323 $12,998
Accounts receivable, net 200,388 176,285
Inventories 222,216 220,714
Deferred income taxes 29,003 31,652
Other current assets 17,612 17,159
Total current assets 482,542 458,808
Property, plant and equipment, net 51,130 51,592
Goodwill 55,606 54,693
Other intangible assets, net 19,662 19,836
Deferred income taxes 8,235 7,908
Other, net 6,915 5,660
$624,090 $598,497
Liabilities and shareholders' equity
Current liabilities:
Notes payable $6,561 $915
Current portion of long-term debt 1,551 1,660
Accounts payable - trade 89,509 94,716
Accrued pension costs 15,730 13,150
Accrued contract losses 13,752 19,950
Other accrued liabilities 34,746 41,077
Advances on contracts 10,656 14,513
Other current liabilities 28,130 30,872
Income taxes payable 3,469 6,423
Total current liabilities 204,104 223,276
Long-term debt, excluding current
portion 93,283 62,235
Other long-term liabilities 45,613 43,232
Shareholders' equity 281,090 269,754
$624,090 $598,497
KAMAN CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(In thousands)
For the Six Months
Ended
June 30, July 1,
2006 2005
Cash flows from operating activities:
Net earnings $13,406 $7,462
Depreciation and amortization 5,165 4,577
Provision (recovery) for losses
on accounts receivable (219) (27)
Net gain on sale or disposal of assets (56) (93)
Deferred income taxes 2,423 3,308
Other, net 3,601 1,982
Changes in current assets and
liabilities, excluding effects of
acquisitions:
Accounts receivable (23,623) (669)
Inventory (1,260) (5,653)
Accounts payable (5,273) 2,102
Accrued contract losses (6,217) (15,693)
Advances on contracts (3,857) (116)
Changes in other current
assets and liabilities (7,158) 9,622
Income taxes payable (3,230) (79)
Cash provided by (used
in) operating activities (26,298) 6,723
Cash flows from investing activities:
Proceeds from sale of assets 461 263
Expenditures for property, plant
& equipment (5,046) (4,129)
Acquisition of businesses, less (362) (1,448)
cash acquired
Other, net (1,742) 7
Cash provided by (used in)
investing activities (6,689) (5,307)
Cash flows from financing activities:
Changes in notes payable 5,646 (2,989)
Changes in debt 30,937 3,988
Proceeds from exercise of
employee stock plans 1,580 625
Dividends paid (5,985) (5,011)
Other 781 -
Cash provided by (used in)
financing activities 32,959 (3,387)
Net increase (decrease) in cash and
cash equivalents (28) (1,971)
Effect of exchange rate changes on
cash and cash equivalents 353 (350)
Cash and cash equivalents at beginning
of period 12,998 12,369
Cash and cash equivalents at end of
period $13,323 $10,048
SOURCE Kaman Corp.
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Related links:
http://www.kaman.com
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CONTACT:
Russell H. Jones, SVP, Chief Investment
Officer & Treasurer, +1-860-243-6307, rhj-corp@kaman.com
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