| Delaware (State or other
jurisdiction of incorporation or organization) |
54-1910453 (I.R.S. Employer
Identification No.) | |
| 160 Exeter Drive Winchester, Virginia (Address of principal executive offices) |
22603-8605 (Zip Code) |
| PART I |
FINANCIAL INFORMATION |
|||
| Item 1. |
Financial Statements |
|||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| Item 2. |
9 | |||
| Item 3. |
13 | |||
| Item 4. |
13 | |||
| PART II. |
OTHER INFORMATION |
|||
| Item 1. |
14 | |||
| Item 5. |
14 | |||
| Item 6. |
14 | |||
| 15 | ||||
| 15 | ||||
| December 31, 2001 |
September 30, 2002 |
|||||||
| (unaudited) |
||||||||
| ASSETS |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
$ |
|
|
$ |
29,948,000 |
| ||
| Trade accounts receivable |
|
2,507,000 |
|
|
12,098,000 |
| ||
| Inventories |
|
33,168,000 |
|
|
7,885,000 |
| ||
| Prepaid expenses and other assets |
|
1,306,000 |
|
|
1,739,000 |
| ||
| Income tax receivable |
|
1,137,000 |
|
|
|
| ||
| Deferred income taxes |
|
1,946,000 |
|
|
1,727,000 |
| ||
| |
|
|
|
|
| |||
| Total current assets |
|
40,064,000 |
|
|
53,397,000 |
| ||
| Property, plant, and equipment, net |
|
137,223,000 |
|
|
132,800,000 |
| ||
| Goodwill |
|
6,837,000 |
|
|
6,837,000 |
| ||
| Other assets |
|
513,000 |
|
|
1,522,000 |
| ||
| |
|
|
|
|
| |||
| Total assets |
$ |
184,637,000 |
|
$ |
194,556,000 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND STOCKHOLDERS EQUITY |
||||||||
| Current liabilities: |
||||||||
| Trade accounts payable |
$ |
9,495,000 |
|
$ |
14,192,000 |
| ||
| Accrued expenses |
|
630,000 |
|
|
6,211,000 |
| ||
| Income taxes payable |
|
|
|
|
3,038,000 |
| ||
| Other current liabilities |
|
964,000 |
|
|
805,000 |
| ||
| Mortgages |
|
759,000 |
|
|
892,000 |
| ||
| Term loan |
|
25,000,000 |
|
|
|
| ||
| |
|
|
|
|
| |||
| Total current liabilities |
|
36,848,000 |
|
|
25,138,000 |
| ||
| |
|
|
|
|
| |||
| Deferred income taxes |
|
7,800,000 |
|
|
9,306,000 |
| ||
| Line of credit |
|
12,153,000 |
|
|
|
| ||
| Debt-related derivatives |
|
1,381,000 |
|
|
2,796,000 |
| ||
| Mortgages, net of current portion |
|
15,196,000 |
|
|
17,476,000 |
| ||
| Long-term debt |
|
32,986,000 |
|
|
40,000,000 |
| ||
| Debt discount |
|
(3,712,000 |
) |
|
|
| ||
| |
|
|
|
|
| |||
| Total liabilities |
|
102,652,000 |
|
|
94,716,000 |
| ||
| |
|
|
|
|
| |||
| Stockholders equity: |
||||||||
| Preferred stock, $0.01 par value, 3,000,000 shares authorized; none issued and outstanding |
|
|
|
|
|
| ||
| Common stock, $0.01 par value, 40,000,000 shares authorized; 14,155,083 and 14,292,328 shares issued and outstanding at
December 31, 2001 and September 30, 2002, respectively |
|
142,000 |
|
|
143,000 |
| ||
| Additional capital |
|
46,079,000 |
|
|
49,171,000 |
| ||
| Retained earnings |
|
36,620,000 |
|
|
54,801,000 |
| ||
| Deferred compensation |
|
|
|
|
(2,542,000 |
) | ||
| Accumulated other comprehensive net loss |
|
(856,000 |
) |
|
(1,733,000 |
) | ||
| |
|
|
|
|
| |||
| Total stockholders equity |
|
81,985,000 |
|
|
99,840,000 |
| ||
| |
|
|
|
|
| |||
| Total liabilities and stockholders equity |
$ |
184,637,000 |
|
$ |
194,556,000 |
| ||
| |
|
|
|
|
| |||
| Three Months Ended September 30, |
Nine Months Ended September 30, |
|||||||||||||||
| 2001 |
2002 |
2001 |
2002 |
|||||||||||||
| Net sales |
$ |
29,868,000 |
|
$ |
49,522,000 |
|
$ |
99,791,000 |
|
$ |
147,442,000 |
| ||||
| Cost of sales |
|
16,716,000 |
|
|
25,069,000 |
|
|
55,754,000 |
|
|
78,779,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Gross profit |
|
13,152,000 |
|
|
24,453,000 |
|
|
44,037,000 |
|
|
68,663,000 |
| ||||
| Selling, general and administrative expenses |
|
7,478,000 |
|
|
13,546,000 |
|
|
24,602,000 |
|
|
32,505,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income from operations |
|
5,674,000 |
|
|
10,907,000 |
|
|
19,435,000 |
|
|
36,158,000 |
| ||||
| Interest expense, net |
|
(760,000 |
) |
|
(1,205,000 |
) |
|
(1,708,000 |
) |
|
(7,016,000 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income before taxes |
|
4,914,000 |
|
|
9,702,000 |
|
|
17,727,000 |
|
|
29,142,000 |
| ||||
| Income taxes |
|
1,511,000 |
|
|
3,571,000 |
|
|
6,382,000 |
|
|
10,961,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income |
$ |
3,403,000 |
|
$ |
6,131,000 |
|
$ |
11,345,000 |
|
$ |
18,181,000 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Basic earnings per common share |
$ |
0.24 |
|
$ |
0.43 |
|
$ |
0.80 |
|
$ |
1.28 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Weighted average basic shares outstanding |
|
14,149,049 |
|
|
14,169,102 |
|
|
14,142,686 |
|
|
14,163,267 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Diluted earnings per common share |
$ |
0.24 |
|
$ |
0.43 |
|
$ |
0.80 |
|
$ |
1.26 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Weighted average diluted shares outstanding |
|
14,171,593 |
|
|
14,416,853 |
|
|
14,172,971 |
|
|
14,463,460 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Nine Months Ended September 30, |
||||||||
| 2001 |
2002 |
|||||||
| OPERATING ACTIVITIES |
||||||||
| Net income |
$ |
11,345,000 |
|
$ |
18,181,000 |
| ||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Deferred income taxes |
|
1,414,000 |
|
|
2,164,000 |
| ||
| Amortization of deferred compensation and financing costs |
|
|
|
|
408,000 |
| ||
| Depreciation and amortization |
|
6,254,000 |
|
|
6,877,000 |
| ||
| Amortization of debt discount |
|
|
|
|
3,712,000 |
| ||
| Loss on disposal of property, plant and equipment |
|
472,000 |
|
|
248,000 |
| ||
| Changes in operating assets and liabilities: |
||||||||
| Trade accounts receivable |
|
5,274,000 |
|
|
(9,591,000 |
) | ||
| Inventories |
|
(8,985,000 |
) |
|
25,282,000 |
| ||
| Prepaid expenses and other assets |
|
98,000 |
|
|
(1,442,000 |
) | ||
| Income tax receivable |
|
|
|
|
1,137,000 |
| ||
| Trade accounts payable |
|
(6,633,000 |
) |
|
4,697,000 |
| ||
| Accrued expenses |
|
(897,000 |
) |
|
5,581,000 |
| ||
| Income taxes payable |
|
(393,000 |
) |
|
3,038,000 |
| ||
| Other current liabilities |
|
230,000 |
|
|
(159,000 |
) | ||
| |
|
|
|
|
| |||
| Net cash provided by operating activities |
|
8,179,000 |
|
|
60,133,000 |
| ||
| |
|
|
|
|
| |||
| INVESTING ACTIVITIES |
||||||||
| Expenditures for property, plant and equipment |
|
(29,890,000 |
) |
|
(2,702,000 |
) | ||
| |
|
|
|
|
| |||
| Net cash used in investing activities |
|
(29,890,000 |
) |
|
(2,702,000 |
) | ||
| |
|
|
|
|
| |||
| FINANCING ACTIVITIES |
  | |||||||