| Ohio |
34-1897652 | |
| (State of Incorporation) |
(I.R.S. Employer Identification No.) | |
| 175 Ghent Road Fairlawn, Ohio |
44333-3300 | |
| (Address of principal executive offices) |
(Zip Code) |
| Page No. | ||
| Part I. Financial Information |
||
| Item 1. Financial Statements (Unaudited) |
||
| 3 | ||
| 4 | ||
| 5 | ||
| 6 | ||
| 13 | ||
| 17 | ||
| Part II. Other Information |
||
| Item 1.
Legal Proceedings |
18 | |
| 19 | ||
| Item 6.
Exhibits and Reports on Form 8-K |
19 | |
| 20 |
| Three Months Ended May 31, |
Six Months Ended May 31, |
|||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
|||||||||||||
| Net Sales |
$ |
175.0 |
|
$ |
190.2 |
|
$ |
331.3 |
|
$ |
355.3 |
| ||||
| Costs and Expenses |
||||||||||||||||
| Cost of products sold |
|
124.5 |
|
|
140.7 |
|
|
235.2 |
|
|
266.1 |
| ||||
| Selling, general and administrative |
|
36.5 |
|
|
37.6 |
|
|
71.1 |
|
|
71.0 |
| ||||
| Depreciation and amortization |
|
7.3 |
|
|
8.9 |
|
|
14.5 |
|
|
17.8 |
| ||||
| Interest expense |
|
2.1 |
|
|
3.8 |
|
|
4.4 |
|
|
7.2 |
| ||||
| Other (income) expense, net |
|
1.0 |
|
|
(.3 |
) |
|
1.7 |
|
|
.5 |
| ||||
| Unusual and nonrecurring items |
|
(2.0 |
) |
|
17.5 |
|
|
(2.0 |
) |
|
16.5 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| |
169.4 |
|
|
208.2 |
|
|
324.9 |
|
|
379.1 |
| |||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income (Loss) Before Income Taxes |
|
5.6 |
|
|
(18.0 |
) |
|
6.4 |
|
|
(23.8 |
) | ||||
| Income tax provision (benefit) |
|
.1 |
|
|
(7.2 |
) |
|
.4 |
|
|
(9.5 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income (Loss) Before Cumulative Effect of Accounting Change |
|
5.5 |
|
|
(10.8 |
) |
|
6.0 |
|
|
(14.3 |
) | ||||
| Cumulative Effect of Accounting Change |
|
|
|
|
|
|
|
(142.5 |
) |
|
|
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net Income (Loss) |
$ |
5.5 |
|
$ |
(10.8 |
) |
$ |
(136.5 |
) |
$ |
(14.3 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Per Share Data: |
||||||||||||||||
| Basic earnings (loss) per common share: |
||||||||||||||||
| Before cumulative effect of accounting change |
$ |
.14 |
|
$ |
(.27 |
) |
$ |
.15 |
|
$ |
(.36 |
) | ||||
| Cumulative effect of accounting change |
|
|
|
|
|
|
|
(3.60 |
) |
$ |
|
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income (loss) |
$ |
.14 |
|
$ |
(.27 |
) |
$ |
(3.45 |
) |
$ |
(.36 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Diluted earnings (loss) per common share: |
||||||||||||||||
| Before cumulative effect of accounting change |
$ |
.14 |
|
$ |
(.27 |
) |
$ |
.15 |
|
$ |
(.36 |
) | ||||
| Cumulative effect of accounting change |
|
|
|
|
|
|
|
(3.60 |
) |
$ |
|
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income (loss) |
$ |
.14 |
|
$ |
(.27 |
) |
$ |
(3.45 |
) |
$ |
(.36 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Average shares outstanding (in millions) |
||||||||||||||||
| Basic |
|
39.6 |
|
|
39.6 |
|
|
39.6 |
|
|
39.6 |
| ||||
| Diluted |
|
40.0 |
|
|
39.6 |
|
|
39.6 |
|
|
39.6 |
| ||||
| Cash dividends declared |
$ |
|
|
$ |
.05 |
|
$ |
|
|
$ |
.10 |
| ||||
| May 31, 2002
|
November 30, 2001 |
|||||||
| (Dollars in millions) |
||||||||
| ASSETS: |
||||||||
| Current Assets |
||||||||
| Cash and cash equivalents |
$ |
8.3 |
|
$ |
8.5 |
| ||
| Accounts receivable, net |
|
51.8 |
|
|
51.9 |
| ||
| Inventories |
|
56.3 |
|
|
56.7 |
| ||
| Deferred income taxes, net |
|
12.5 |
|
|
12.8 |
| ||
| Prepaid expenses and other |
|
5.0 |
|
|
4.9 |
| ||
| |
|
|
|
|
| |||
| Total Current Assets |
|
133.9 |
|
|
134.8 |
| ||
| Property, plant and equipment, net |
|
201.5 |
|
|
208.9 |
| ||
| Goodwill, net |
|
40.0 |
|
|
142.7 |
| ||
| Patents and other intangible assets, net |
|
37.3 |
|
|
76.9 |
| ||
| Prepaid pension |
|
52.7 |
|
|
49.6 |
| ||
| Other assets |
|
27.4 |
|
|
26.2 |
| ||
| |
|
|
|
|
| |||
| Total Assets |
$ |
492.8 |
|
$ |
639.1 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND SHAREHOLDERS EQUITY: |
||||||||
| Current Liabilities |
||||||||
| Notes payable |
$ |
6.0 |
|
$ |
3.5 |
| ||
| Accounts payable |
|
87.5 |
|
|
92.2 |
| ||
| Accrued payroll and personal property taxes |
|
13.3 |
|
|
15.2 |
| ||
| Other current liabilities |
|
16.7 |
|
|
15.1 |
| ||
| |
|
|
|
|
| |||
| Total Current Liabilities |
|
123.5 |
|
|
126.0 |
| ||
| Long-term debt |
|
153.5 |
|
|
157.8 |
| ||
| Postretirement benefits other than pensions |
|
50.6 |
|
|
50.5 |
| ||
| Deferred income taxes |
|
11.1 |
|
|
14.4 |
| ||
| Other liabilities |
|
12.3 |
|
|
12.3 |
| ||
| Shareholders Equity |
||||||||
| Preference stock$1.00 par value; 15 million shares authorized; none outstanding |
|
|
|
|
|
| ||
| Common stock$0.10 par value; 135 million shares authorized; 41.8 million shares outstanding |
|
4.2 |
|
|
4.2 |
| ||
| Additional contributed capital |
|
309.2 |
|
|
308.7 |
| ||
| Retained deficit |
|
(149.0 |
) |
|
(12.5 |
) | ||
| Accumulated other comprehensive loss |
|
(8.5 |
) |
|
(8.2 |
) | ||
| Treasury stock at cost; 2.2 million shares |
|
(14.1 |
) |
|
(14.1 |
) | ||
| |
|
|
|
|
| |||
| Total Shareholders Equity |
|
141.8 |
|
|
278.1 |
| ||
| |
|
|
|
|
| |||
| Total Liabilities and Shareholders Equity |
$ |
492.8 |
|
$ |
639.1 |
| ||
| |
|
|
|
|
| |||
| Six Months Ended May
31, |
||||||||
| 2002 |
2001 |
|||||||
| (Dollars in millions) |
||||||||
| Operating Activities |
||||||||
| Net loss |
$ |
(136.5 |
) |
$ |
(14.3 |
) | ||
| Adjustments to reconcile net loss to net cash provided by (used in) operating activities: |
||||||||
| Cumulative effect of accounting change |
|
142.5 |
|
|
|
| ||
| Unusual and nonrecurring items |
|
(2.8 |
) |
|
18.3 |
| ||
| Depreciation, amortization and (gain)/loss on sale of fixed assets |
|
14.5 |
|
|
17.3 |
| ||
| Changes in operating assets and liabilities net of effects of acquisitions and dispositions of businesses:
|
||||||||
| Current assets |
|
(3.0 |
) |
|
(23.0 |
) | ||
| Current liabilities |
|
(4.7 |
) |
|
(29.2 |
) | ||
| Other noncurrent assets |
|
(4.6 |
) |
|
(7.6 |
) | ||
| Other noncurrent liabilities |
|
(.4 |
) |
|
3.6 |
| ||
| |
|
|
|
|
| |||
| Net Cash Provided By (Used In) Operating Activities |
|
5.0 |
|
|
(34.9 |
) | ||