UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 29, 2002 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
COMMISSION FILE NUMBER 001-11911
STEINWAY MUSICAL INSTRUMENTS, INC.
(Exact name of registrant as specified in its charter)
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DELAWARE |
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35-1910745 |
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(State or Other
Jurisdiction of |
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(I.R.S. Employer Identification No.) |
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800
South Street, Suite 305 |
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02453 |
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(Address of Principal Executive Offices) |
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(Zip Code) |
Registrant’s telephone number including area code: (781) 894-9770
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements during the past 90 days. Yes ý No o
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Number of shares of Common Stock issued and outstanding as of July 19, 2002: |
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Class A |
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477,953 |
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Ordinary |
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8,390,896 |
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Total |
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8,868,849 |
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STEINWAY MUSICAL INSTRUMENTS, INC. AND SUBSIDIARIES
FORM 10-Q
INDEX
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STEINWAY MUSICAL INSTRUMENTS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Thousands Except Share and Per Share Amounts)
(Unaudited)
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Three Months Ended |
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Six Months Ended |
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June 30, |
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June 29, |
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June 30, |
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June 29, |
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Net sales |
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$ |
83,661 |
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$ |
78,349 |
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$ |
185,242 |
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$ |
166,408 |
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Cost of sales |
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56,597 |
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53,964 |
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126,469 |
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116,660 |
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Gross Profit |
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27,064 |
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24,385 |
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58,773 |
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49,748 |
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Operating expenses: |
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Sales and marketing |
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10,426 |
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9,949 |
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22,195 |
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20,630 |
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General and administrative |
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5,140 |
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5,362 |
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10,771 |
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10,929 |
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Amortization |
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1,044 |
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289 |
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2,159 |
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578 |
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Other operating expense |
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353 |
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250 |
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475 |
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407 |
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Total operating expenses |
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16,963 |
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15,850 |
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35,600 |
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32,544 |
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Income from operations |
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10,101 |
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8,535 |
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23,173 |
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17,204 |
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Interest expense, net |
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4,529 |
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3,489 |
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9,066 |
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6,790 |
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Other income, net |
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(229 |
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(1,238 |
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(394 |
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(1,543 |
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Income before income taxes |
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5,801 |
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6,284 |
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14,501 |
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11,957 |
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Provision for income taxes |
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2,100 |
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2,200 |
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5,600 |
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4,190 |
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Income before extraordinary loss |
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3,701 |
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4,084 |
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8,901 |
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7,767 |
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Extraordinary loss on early extinguishment of debt (net of tax benefit of $2,662) |
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3,950 |
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— |
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3,950 |
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— |
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Net income (loss) |
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$ |
(249 |
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$ |
4,084 |
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$ |
4,951 |
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$ |
7,767 |
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Earnings per share: |
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Basic earnings per share before extraordinary loss |
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$ |
0.41 |
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$ |
0.46 |
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$ |
1.00 |
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$ |
0.88 |
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Extraordinary loss on early extinguishment of debt |
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(0.44 |
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— |
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(0.44 |
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— |
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Basic earnings per share |
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$ |
(0.03 |
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0.46 |
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$ |
0.55 |
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0.88 |
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Diluted earnings per share before extraordinary loss |
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$ |
0.41 |
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$ |
0.46 |
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$ |
1.00 |
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$ |
0.87 |
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Extraordinary loss on early extinguishment of debt |
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(0.44 |
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— |
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