| Minnesota |
41-0343440 | |
| (State or other jurisdiction of incorporation or organization) |
(I.R.S. employer identification number) | |
| 5501 Norman Center Drive, Minneapolis, Minnesota |
55437 | |
| (Address of principal executive offices) |
(Zip code) |
| Page | ||||
| Part I Financial Information |
||||
| Item 1. |
Financial Statements (Unaudited) |
|||
| 3 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| Item 2. |
12 | |||
| Item 3. |
18 | |||
| Part II Other Information |
||||
| Item 1. |
19 | |||
| Item 6. |
19 | |||
| 20 | ||||
| Three months ended |
Six months ended |
|||||||||||||||
| In thousands, except per-share data |
June 29, 2002 |
June 30, 2001 |
June 29, 2002 |
June 30, 2001 |
||||||||||||
| Net sales |
$ |
353,720 |
|
$ |
337,740 |
|
$ |
475,043 |
|
$ |
454,804 |
| ||||
| Cost of products sold |
|
151,446 |
|
|
145,638 |
|
|
199,153 |
|
|
191,564 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Gross profit |
|
202,274 |
|
|
192,102 |
|
|
275,890 |
|
|
263,240 |
| ||||
| Selling and administrative expenses |
|
100,480 |
|
|
95,433 |
|
|
167,491 |
|
|
162,548 |
| ||||
| Special charges |
|
|
|
|
2,138 |
|
|
|
|
|
2,138 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Operating income |
|
101,794 |
|
|
94,531 |
|
|
108,399 |
|
|
98,554 |
| ||||
| Net interest expense |
|
17,016 |
|
|
19,640 |
|
|
34,706 |
|
|
40,922 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income from continuing operations before income taxes |
|
84,778 |
|
|
74,891 |
|
|
73,693 |
|
|
57,632 |
| ||||
| Provision for income taxes |
|
35,184 |
|
|
31,012 |
|
|
30,584 |
|
|
23,739 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Income from continuing operations |
|
49,594 |
|
|
43,879 |
|
|
43,109 |
|
|
33,893 |
| ||||
| Gain (loss) on discontinued operations, net of tax |
|
940 |
|
|
(1,391 |
) |
|
940 |
|
|
(3,681 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income |
|
50,534 |
|
|
42,488 |
|
|
44,049 |
|
|
30,212 |
| ||||
| Dividends and accretion on redeemable preferred shares |
|
(2,883 |
) |
|
(2,504 |
) |
|
(5,666 |
) |
|
(4,922 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Net income available to common shareholders |
$ |
47,651 |
|
$ |
39,984 |
|
$ |
38,383 |
|
$ |
25,290 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Earnings per common share |
||||||||||||||||
| Basic |
||||||||||||||||
| Income from continuing operations |
$ |
5.22 |
|
$ |
4.60 |
|
$ |
4.18 |
|
$ |
3.22 |
| ||||
| Gain (loss) on discontinued operations |
|
0.10 |
|
|
(0.15 |
) |
|
0.10 |
|
|
(0.41 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Basic earnings per common share |
$ |
5.32 |
|
$ |
4.45 |
|
$ |
4.28 |
|
$ |
2.81 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Diluted |
||||||||||||||||
| Income from continuing operations |
$ |
4.70 |
|
$ |
4.16 |
|
$ |
3.77 |
|
$ |
2.91 |
| ||||
| Gain (loss) on discontinued operations |
|
0.09 |
|
|
(0.14 |
) |
|
0.09 |
|
|
(0.37 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Diluted earnings per common share |
$ |
4.79 |
|
$ |
4.02 |
|
$ |
3.86 |
|
$ |
2.54 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| Weighted average common shares outstanding |
||||||||||||||||
| Basic |
|
8,958 |
|
|
8,993 |
|
|
8,961 |
|
|
8,993 |
| ||||
| Diluted |
|
9,951 |
|
|
9,949 |
|
|
9,946 |
|
|
9,949 |
| ||||
| (Unaudited) |
December 29, 2001 |
|||||||||||
| In thousands, except per-share data |
June 29, 2002 |
June 30, 2001 |
||||||||||
| ASSETS |
||||||||||||
| Current assets |
||||||||||||
| Cash and cash equivalents |
$ |
59,148 |
|
$ |
43,070 |
|
$ |
43,100 |
| |||
| Accounts receivable, net of allowance of $3,789, $3,550 and $3,657 |
|
80,418 |
|
|
94,440 |
|
|
56,238 |
| |||
| Inventories, net of reserve of $2,340, $3,558 and $2,089 |
|
47,167 |
|
|
60,728 |
|
|
70,514 |
| |||
| Deferred income taxes |
|
19,964 |
|
|
17,995 |
|
|
19,964 |
| |||
| Salespersons overdrafts, net of allowance of $6,595, $5,800 and $6,897 |
|
14,913 |
|
|
14,177 |
|
|
28,037 |
| |||
| Prepaid expenses and other current assets |
|
5,189 |
|
|
4,574 |
|
|
7,723 |
| |||
| Current assets of discontinued operations |
|
|
|
|
|
|
|
7,029 |
| |||
| |
|
|
|
|
|
|
|
| ||||
| Total current assets |
|
226,799 |
|
|
234,984 |
|
|
232,605 |
| |||
| |
|
|
|
|
|
|
|
| ||||
| Other assets |
||||||||||||
| Intangibles, net |
|
14,763 |
|
|
17,105 |
|
|
14,260 |
| |||
| Deferred financing costs, net |
|
25,194 |
|
|
30,331 |
|
|
27,476 |
| |||
| Other |
|
34,520 |
|
|
30,672 |
|
|
32,075 |
| |||
| |
|
|
|
|
|
|
|
| ||||
| Total other assets |
|
74,477 |
|
|
78,108 |
|
|
73,811 |
| |||
| |
|
|
|
|
|
|
|
| ||||
| Property and equipment |
|
274,431 |
|
|
290,061 |
|
|
267,255 |
| |||
| Less accumulated depreciation |
|
(209,562 |
) |
|
(216,136 |
) |
|
(199,064 |
) | |||
| |
|
|
|
|
|
|
|
| ||||
| Property and equipment, net |
|
64,869 |
|
|
73,925 |
|
|
68,191 |
| |||
| |
|
|
|
|
|
|
|
| ||||
| $ |
366,145 |
|
$ |
387,017 |
|
$ |
374,607 |
| ||||
| |
|
|
|
|
|
|
|
| ||||
| LIABILITIES AND SHAREHOLDERS DEFICIT |
||||||||||||
| Current liabilities |
||||||||||||
| Accounts payable |
$ |
8,040 |
|
$ |
14,569 |
|
$ |
18,721 |
| |||
| Accrued employee compensation and related taxes |
|
26,519 |
|
|
25,855 |
|
|
27,392 |
| |||
| Commissions payable |
|
41,996 |
|
|
43,479 |
|
|
18,639 |
| |||
| Customer deposits |
|
59,662 |
|
|
58,516 |
|
|
126,400 |
| |||
| Income taxes payable |
|
48,556 |
|
|
38,307 |
|
|
16,940 |
| |||
| Interest payable |
|
7,667 |
|
|
8,876 |
|
|
10,567 |
| |||
| Current portion of long-term debt |
|
22,049 |
|
|
20,879 |
|
|
20,966 |
| |||
| Other accrued liabilities |
|
13,906 |
|
|
16,073 |
|
|
16,913 |
| |||
| Current liabilities of discontinued operations |
|
5,939 |
|
|
|
|
|
16,511 |
| |||
| |
|
|
|
|
|
|
|
| ||||
| Total current liabilities |
|
234,334 |
|
|
226,554 |
|
|
273,049 |
| |||
| Long-term debtless current maturities, net of unamortized original issue discount of $17,547, $18,700 and
$18,143 |
|
610,547 |
|
|
655,430 |
|
|
626,017 |
| |||