SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE
- --- SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED
June 30, 1998.
---------------
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE
- --- SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
TO
--------------- --------------.
Commission File No. 0-1093
KAMAN CORPORATION
(Exact Name of Registrant)
Connecticut 06-0613548
(State of Incorporation) (I.R.S. Employer Identification No.)
1332 Blue Hills Avenue
Bloomfield, Connecticut 06002
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (860) 243-7100
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 for the past 90 days.
Yes x No
--- ---
Indicate the number of shares outstanding of each of the issuer's
classes of common stock as of July 31, 1998:
Class A Common 23,033,631
Class B Common 667,814
Page 1 of 16 Pages
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements:
Condensed Consolidated Balance Sheets(In thousands)
June 30, December 31,
Assets 1998 1997
------ ----------------- ------------------
Current assets:
Cash and cash equivalents $ 51,196 $ 109,974
Accounts receivable (net of
allowance for doubtful
accounts of $4,007 in
1998, $3,827 in 1997) 212,704 191,154
Inventories:
Raw materials $ 6,250 $ 6,626
Work-in-process 57,497 54,413
Finished goods 29,265 31,334
Merchandise for resale 116,775 209,787 107,112 199,485
------- -------
Other current assets 34,657 34,691
------- -------
Total current assets 508,344 535,304
Property, plant & equip., at cost 160,253 153,146
Less accumulated depreciation
and amortization 97,596 95,521
------- -------
Net property, plant & equipment 62,657 57,625
Other assets 5,061 5,232
-------- --------
$576,062 $ 598,161
======== ========
Liabilities and Shareholders' Equity
------------------------------------
Current liabilities:
Notes payable $ 4,765 $ 7,207
Accounts payable 52,378 45,264
Accrued liabilities 32,576 34,177
Advances on contracts 108,219 104,723
Other current liabilities 28,058 31,426
Income taxes payable 2,937 36,728
------- -------
Total current liabilities 228,933 259,525
Deferred credits 18,826 18,759
Long-term debt, excl. current portion 28,206 29,867
Shareholders' equity:
Series 2 preferred stock $ -- $ 37,691
Other shareholders' equity 300,097 300,097 252,319 290,010
-------- -------- -------- --------
$576,062 $ 598,161
======== =========
- 2 -
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 1. Financial Statements, Continued:
Condensed Consolidated Statements of Operations
(In thousands except per share amounts)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
-------------------- ------------------
1998 1997 1998 1997
---- ---- ---- ----
Revenues $247,447 $250,245 $486,512 $502,402
Costs and expenses:
Cost of sales 181,926 188,445 357,633 377,514
Selling, general and
administrative expense 52,334 53,675 103,890 104,708
Loss (credit) on sale of
amplifier business -- (4,600) -- 10,400
Interest expense (income), net (202) 2,614 (398) 5,093
Other expense (income), net 516 223 714 (127)
-------- -------- -------- --------
234,574 240,357 461,839 497,588
-------- -------- -------- --------
Earnings before income taxes 12,873 9,888 24,673 4,814
Income taxes 5,256 3,178 10,080 2,511
-------- -------- -------- --------
Net earnings $ 7,617 $ 6,710 $ 14,593 $ 2,303
======== ======== ======== ========
Preferred stock dividend
requirement $ -- $ (929) $ -- $ (1,858)
======== ======== ======== ========
Earnings applicable to
common stock $ 7,617 $ 5,781 $ 14,593 $ 445
======== ======== ======== ========
Net earnings per common share:
Basic $ .32 $ .31 $ .63 $ .02
Diluted $ .31 $ .28 $ .60 $ .02
======== ======== ======== ========
Dividends declared per share:
Series 2 preferred stock $ -- $ 3.25 $ -- $ 6.50
Common stock $ .11 $ .11 $ .22 $ .22
======== ======== ======== ========
- 3 -
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 1. Financial Statements, Continued:
Condensed Consolidated Statements of Cash Flows
(In thousands)
For the Six Months
Ended June 30,
--------------------
1998 1997
--------- --------
Cash flows from operating activities:
Net earnings $ 14,593 $ 2,303
Depreciation and amortization 5,160 6,011
Gain on sale of assets - (509)
Loss on closure of amplifier business - 10,400
Advances on contracts 3,496 49,448
Income taxes payable (33,791) 2,808
Changes in other current assets and liabilities (30,016) (33,969)
Other, net 400 2,136
-------- --------
Cash provided by (used in) operating
activities (40,158) 38,628
-------- --------
Cash flows from investing activities:
Proceeds from sale of assets - 3,661
Expenditures for property, plant & equipment (10,107) (5,049)
Other, net (223) (100)
-------- --------
Cash provided by (used in) investing
activities (10,330) (1,488)
-------- --------
Cash flows from financing activities:
Additions (reductions) to notes payable (2,441) 21,124
Reductions to long-term debt (1,661) (1,916)
Dividends paid (4,873) (6,012)
Other, net 685 1,407
-------- --------
Cash provided by (used in) financing
activities (8,290) 14,603
-------- --------
Net increase (decrease) in cash and cash equivalents (58,778) 51,743
Cash and cash equivalents at beginning of period 109,974 5,445
-------- --------
Cash and cash equivalents at end of period $ 51,196 $57,188
======== ========
- 4 -
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 1. Financial Statements, Continued:
Notes to Condensed Consolidated Financial Statements
(In thousands except share amounts)
Basis of Presentation
- ----------------------
The December 31, 1997 condensed consolidated balance sheet
amounts have been derived from the previously audited consolidated
balance sheet of Kaman Corporation and subsidiaries.
In the opinion of management, the balance of the condensed
financial information reflects all adjustments which are necessary
for a fair presentation of the financial position, results of
operations and cash flows for the interim periods presented and
are of a normal recurring nature, unless otherwise disclosed in
this report.
The statements should be read in conjunction with the notes to
the consolidated financial statements included in Kaman
Corporation's 1997 Annual Report.
Advances on Contracts
- ---------------------
Advances on contracts include customer advances and customer
payments associated with the achievement of certain contract
milestones in excess of cost incurred. A portion of the customer
advances are secured by letters of credit.
Series 2 Preferred Stock Conversion/Redemption
- ----------------------------------------------
Pursuant to a redemption call on January 8, 1998 for the balance of
the Series 2 preferred stock, the remaining shares were converted
into 3,000,174 shares of Class A common stock as of February 9,
1998.
Loss on Closure of Amplifier Business
- -------------------------------------
The corporation recorded a pre-tax charge of $15,000 in the first
quarter of 1997 as a result of management's decision to close Kaman
Music's Trace Elliot amplifier manufacturing business in Great
Britain. This loss was adjusted to $10,400 in the second quarter
to reflect the sale of Trace Elliot in June 1997. The balance of
the loss was utilized to offset other items in the music business.
- 5 -
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 1. Financial Statements, Continued:
Notes to Condensed Consolidated Financial Statements
(In thousands except share amounts)
Cash Flow Items
- ---------------
Cash payments for interest were $1,316 and $5,530 for the six
months ended June 30, 1998 and 1997, respectively. Cash
payments for income taxes for the comparable periods were $42,456
and $5,294, respectively.
Recently Adopted Accounting Standards
- -------------------------------------
Effective January 1, 1998, the corporation adopted Statement of
Financial Accounting Standards No. 130, "Reporting Comprehensive
Income." The standard requires the corporation to report
comprehensive income which is defined as net income plus
non-shareholder direct adjustments to shareholders' equity.
Comprehensive income was $14,549 and $2,285 for the six
months ended June 30, 1998 and 1997, respectively. These
adjustments to shareholders' equity are foreign currency items.
Effective January 1, 1998, the corporation adopted Statement of
Financial Accounting Standard No. 131, "Disclosures about Segments
of an Enterprise and Related Information." This standard changes
the criteria used to determine the segments for which SEC
registrants must report information. As permitted by the standard,
the corporation will provide the required disclosures for its
segments in its Form 10-K for the year ending December 31, 1998.
Effective January 1, 1998, the corporation adopted Statement of
Financial Accounting Standards No. 132, "Employers' Disclosures
about Pensions and Other Postretirement Benefits." This statement
requires additional disclosure on changes in the benefit
obligations and fair values of plan assets during the year. As
permitted by the standard, the corporation will provide the
required disclosures for its benefit plans in its Form 10-K for the
year ending December 31, 1998.
- 6 -
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations
- ---------------------
Consolidated revenues for the quarter ended June 30, 1998 were
level compared to the same period of 1997, while consolidated
revenues for the six month period ended June 30, 1998 were down
slightly from the same period a year ago.
Diversified Technologies segment revenues decreased about 7% for
the three months ended June 30, 1998 compared to the same period of
1997; for the six month period, revenues decreased about 12%
compared to the same period a year ago. These results reflect loss
of revenue due to the sale of the corporation's defense information
technology and services operation (called "Kaman Sciences"), which
more than off set increases in revenue recorded for the Australia
and New Zealand SH-2 helicopter programs and increased demand for
aircraft structures and specialty self-lubricating bearings.
Excluding Kaman Sciences, Diversified Technologies segment revenues
increased 55% during the second quarter of 1998 compared to the
same period of last year.
The Diversified Technologies segment's principal programs are in
the aerospace business; they include the SH-2G multi-mission naval
helicopter, subcontract work involving airframe structures, and the
manufacture of niche market products such as self-lubricating
bearings and driveline couplings for aircraft applications. The
corporation's K-MAX helicopter program is also part of the
Diversified Technologies segment.
The SH-2G helicopter program generally involves retrofit of the
corporation's SH-2F helicopters, previously manufactured for the
U.S. Navy (and currently in desert storage), to the SH-2G
configuration. The corporation is currently performing this work
under several contracts with foreign governments. Specifically,
the corporation is delivering ten (10) SH-2G helicopters to the
Republic of Egypt under its foreign military sale agreement with
the U.S. Navy. This work has a value of about $150 million, of
which about 95% percent has now been recorded as revenue. To date,
eight (8) aircraft have been delivered, with deliveries scheduled
to be completed by the end of this year.
- 7 -
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
The corporation also has commercial sale contracts with the
Commonwealth of Australia and the Government of New Zealand for the
supply of retrofit SH-2G aircraft. The work for Australia involves
eleven (11) helicopters (incorporating a new cockpit and new
weapons and sensors) with support, including a support services
facility, for the Royal Australian Navy. This contract is valued
at nearly $600 million. The work for New Zealand involves four (4)
aircraft, and support, for New Zealand defense forces. This
contract is valued at nearly $170 million. Revenue has been
recorded for each of these contracts, beginning in the last half of
1997. Deliveries under both programs are expected to begin in the
2000 - 2001 time frame.
Certain other regions of the world are developing naval helicopter
requirements and the corporation is pursuing this business in a
highly competitive environment. However, management continues to
believe that political and financial conditions in various areas
could slow the prospects for potential sales. The economic
difficulties in Southeast Asia demonstrate this, as it appears that
certain procurement awards are likely to be delayed in that region.
There are currently fourteen (14) SH-2G aircraft in the U.S. Naval
Reserves. The corporation expects to continue providing logistics
and spare parts support for these aircraft for a period of time,
even though this aircraft is no longer manufactured for the U.S.
government.
The corporation also performs subcontract work for certain airframe
manufacturing programs and manufactures various niche market
products, including self-lubricating bearings for use principally
in aircraft as well as hydro power installations, ships and
submarines; and driveline couplings for use in helicopters. These
businesses continue to benefit from general growth trends in the
commercial aviation industry.
Management continues to take a conservative approach to production
of its K-MAX helicopter, a medium to heavy lift 'aerial truck' with
many potential applications, including logging, movement of
equipment and materials for projects such as ski lift and oil rig
- 8 -
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
construction, utility power line work, fire fighting, and
reforestation. Management believes that this approach will give
the aircraft's markets time to develop and expects that sales and
profitability will take some time to achieve. The K-MAX has been
used extensively in the logging industry during its four years of
commercial operation. Softness has developed in this market in the
U.S. Pacific Northwest and Canada, due at least in part to the
effect of economic conditions in Southeast Asia upon export sales.
These circumstances appear to be affecting sales of the K-MAX and
production is being adjusted accordingly. Another potential K-MAX
application is the task of vertical replenishment ("VERTREP"), a
non-combat role in the military. As the federal government has
explored the concept of outsourcing VERTREP work to commercial
providers, the U.S. Navy Military Sealift Command has awarded K-MAX
two separate demonstration projects using charter/lease
arrangements. Management believes that the federal government is
continuing to consider the commercial outsourcing alternative.
Overall, Distribution segment revenues increased about 2% for both
the second quarter and first six months of 1998, compared to the
same periods a year ago. These results reflect an increase of 6%
and 7%, respectively, for Industrial Distribution (which
constitutes 82% of the segment's revenues) offset by decreases of
12% in Music Distribution for both the second quarter and first six
months of 1998.
The Industrial Distribution business, which serves nearly every
sector of U.S. industry, continues to benefit from a healthy
domestic economy, internal initiatives to enhance operating
efficiencies, and ongoing efforts to differentiate the business by
offering a product mix which incorporates more value-added high
technology and providing certain technical services to support
customer needs. Given the nature of the business, demand tends to
be influenced by industrial production levels. As a result, the
economic difficulties in Southeast Asia are being monitored by
management for their potential impact on U.S. industry.
Additionally, while the industrial distribution business has
traditionally been very competitive, increasing consolidation in
the industry appears to be resulting in even more intense
competition.
- 9 -
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
The decrease in revenues for the Music Distribution business was
largely due to loss of sales associated with Trace Elliot, the
amplifier manufacturing business sold during 1997. Management
continues efforts to improve operating efficiency and reorient its
product lines to adapt to a general shift in musical tastes and
buying habits in the market for music instruments.
Total operating profits for the segments for the second quarter of
1998 increased 6% compared to the same period of 1997; total
operating profits for the segments for the six months ended June
30, 1998 increased substantially compared to the prior year, due to
the loss resulting from charges taken in the Music Distribution
business during 1997. For the second quarter and six months ended
June 30, 1998, operating profits for the Diversified Technologies
segment were up almost 3% and level, respectively, compared to the
same periods of last year. These results reflect increases in
earnings from the SH-2 helicopter programs and sales of specialty
self-lubricating bearings and aircraft structures, off set by loss
of operating profit on sales from Kaman Sciences. Excluding Kaman
Sciences, operating profits for this segment increased 37% for the
second quarter and 34% for the six month period, compared to the
same periods of 1997. Operating profits for the Distribution
segment increased almost 13% for the second quarter of 1998 and
substantially for the first six months of 1998 compared to the
prior year, due primarily to the charge taken in the Music
Distribution business in the first quarter of 1997.
For the quarter ended June 30, 1998, net earnings rose to $7.6
million from $6.7 million in 1997. Earnings applicable to common
shareholders were $7.6 million, or 32 cents per common share basic,
31 cents per common share diluted, compared to $5.8 million, or 31
cents per common share basic, and 28 cents per common share diluted
for the second quarter last year. These results reflect
elimination of the preferred stock dividend as a result of
completion of the redemption process for the Corporation's Series 2
Preferred Stock during the first quarter.
For the six month period ended June 30, 1998, net earnings were
$14.6 million compared to $2.3 million a year ago. Earnings
applicable to common shareholders for the first six months of 1998
were $14.6 million, or 63 cents per common share basic, 60 cents
per common share diluted, compared to $445,000, or 2 cents per
- 10 -
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
common share basic and diluted in 1997. Results for the first half
of 1997 include a loss on the sale of the Trace Elliot amplifier
business and charges taken in the Music Distribution business.
Interest expense decreased almost 75% for the first half of 1998
compared to the same period of 1997, primarily due to the
application of a substantial portion of advance payments received
from the governments of Australia and New Zealand and a portion of
the proceeds from the sale of Kaman Sciences to pay down bank debt.
For the six months ended June 30, 1998, interest expense
attributable to the corporation's debentures was more than off set
by interest income earned from investment of surplus cash.
The consolidated effective income tax rate for the first six months
of 1998 was 40.9% compared to 52.2% for the same period a year ago.
The rate for 1997 reflects adjustments for the tax benefits
associated with the Trace Elliot matter.
Effective January 1, 1998, the corporation adopted Statement of
Financial Accounting Standards No. 130, "Reporting Comprehensive
Income." The Statement requires the corporation to report
"comprehensive income" as defined therein. Please refer to the
Notes to Condensed Consolidated Financial Statements for more
information.
Effective January 1, 1998, the corporation adopted Statement of
Financial Accounting Standards No. 131, "Disclosure about Segments
of an Enterprise and Related Information." The Statement changes
the criteria used to determine the segments for which the
corporation must report information. As permitted by the
Statement, the corporation will provide the required disclosures
for its segments in its Form 10-K report for the year ending
December 31, 1998.
Effective January 1, 1998, the corporation adopted Statement of
Financial Accounting Standards No. 132, "Employers' Disclosures
about Pensions and Other Postretirement Benefits." The Statement
requires additional disclosures on changes in the benefit
obligations and fair values of plan assets during the year. As
permitted by the Statement, the corporation will provide the
required disclosures for its benefit plans in its Form 10-K report
for the year ending December 31, 1998.
- 11 -
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
Management is aware of the potential software logic anomalies
associated with the year 2000 date change. The corporation is in
the process of evaluating the potential issues that need to be
addressed in its operations and developing a plan for their
remediation. Based on currently known information, costs of
addressing the issue are not expected to have any material effect
upon the corporation's financial position, results of operations,
or cash flows in future periods. As part of the process, the
corporation is also involved in communicating with certain service
providers, suppliers, and customers to obtain information regarding
their plans to address Year 2000 issues, to the extent that they
have such issues. There can be no assurance that third parties'
systems, upon which the corporation may rely, will become Year 2000
compliant in a timely manner.
Liquidity and Capital Resources
The corporation's cash flow from operations has generally been
sufficient to finance a significant portion of its working capital
and other capital requirements.
During the six month period ended June 30, 1998, operating
activities used cash, principally due to increases in accounts
receivable in the Diversified Technologies and Distribution
segments, increases in inventories, largely in the Distribution
segment, and payment of taxes due on the Kaman Sciences
transaction, offset by increases in accounts payable in the
Distribution segment. During this period, cash used in investing
activities was for items such as acquisition of machinery and
computer equipment used in manufacturing and distribution. Cash
used by financing activities was primarily attributable to the
repayment of debt and the payment of dividends to common
shareholders.
The corporation had approximately $44.5 million in surplus cash at
June 30, 1998, with an average of $67 million for the six month
period. These funds have been invested in high quality, short term
instruments.
- 12 -
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
At June 30, 1998, the corporation had approximately $30 million of
its 6% convertible subordinated debentures outstanding. The
debentures are convertible into shares of Class A common stock at
any time on or before March 15, 2012 at a conversion price of
$23.36 per share, generally at the option of the holder. Pursuant
to a sinking fund requirement that began March 15, 1997, the
corporation redeems approximately $1.7 million of the outstanding
principal of the debentures each year.
For borrowing purposes, the corporation maintains a revolving
credit agreement involving a group of domestic and foreign banks.
This facility provides a maximum unsecured line of credit of $250
million. The agreement has a term of five years ending in January
2001, and contains various covenants, including debt to
capitalization, consolidated net worth requirements, and
limitations on other loan indebtedness that the corporation may
incur. The agreement was amended and restated during 1997 to
specifically address the issuance of certain letters of credit,
which are considered borrowings under the agreement.
During 1997, the governments of Australia and New Zealand made
advance payments of $104.3 million in connection with their SH-2G
contracts, which were fully secured by the corporation through the
issuance of irrevocable letters of credit. At present, the face
amount of these letters of credit has been reduced to about $68
million, in accordance with the terms of the relevant contracts.
Further reductions are anticipated as certain contract milestones
are achieved.
Under the revolving credit agreement, the corporation has the
ability to borrow funds on both a short-term and long-term basis.
As of June 30, 1998, the corporation had virtually no outstanding
bank borrowings. Average bank borrowings were $4.1 million for the
six months, compared to $129.5 million for the same period of 1997.
During the first quarter of 1998, pursuant to a redemption call,
the corporation completed the process of converting virtually all
of its Series 2 preferred stock to Class A common stock with an
immaterial number of Series 2 preferred shares being redeemed by
the corporation and settled in cash.
- 13 -
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
Management believes that the corporation's cash flow from
operations and available unused bank lines of credit under its
revolving credit agreement will be sufficient to finance its
working capital and other capital requirements for the foreseeable
future.
Forward-Looking Statements
This report contains forward-looking information relating to the
corporation's business and prospects, including the SH-2G and K-MAX
helicopter programs, specialty self-lubricating bearings and
couplings, the industrial and music distribution businesses, 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 contract negotiations with government authorities,
including foreign governments; 2) political developments in
countries where the corporation intends to do business; 3) standard
government contract provisions permitting renegotiation of terms
and termination for the convenience of the government; 4) economic
and competitive conditions in markets served by the corporation,
including industry consolidation in the United States and economic
conditions in Southeast Asia; 5) the degree of acceptance of new
products in the marketplace; 6) U.S. industrial production levels;
7) currency exchange rates, taxes, laws and regulations, inflation
rates, general business conditions and other factors. Any forward-
looking information should be considered with these factors in
mind.
- 14 -
KAMAN CORPORATION AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits to Form 10-Q:
(11) Earnings per common share computation
(27) Financial Data Schedule
(b) Reports on Form 8-K:
There have been no reports on Form 8-K filed
during the quarter ended June 30, 1998.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned thereunto duly authorized.
KAMAN CORPORATION
Registrant
Date: August 13, 1998 By Charles H. Kaman
Chairman and
Chief Executive Officer
(Duly Authorized Officer)
Date: August 13, 1998 By Robert M. Garneau
Executive Vice President and
Chief Financial Officer
- 15 -
KAMAN CORPORATION AND SUBSIDIARIES
Index to Exhibits
Exhibit 11 Earnings Per Common Share
Computation Attached
Exhibit 27 Financial Data Schedule Attached
- 16 -
KAMAN CORPORATION AND SUBSIDIARIES
EXHIBIT 11 - EARNINGS PER COMMON SHARE COMPUTATION
(In thousands except per share amounts)
For the Three Months For the Six Months
Ended June 30, Ended June 30,
-------------------- ------------------
1998 1997 1998 1997
---- ---- ---- ----
Basic:
Net earnings applicable to
common stock $ 7,617 $ 5,781 $ 14,593 $ 445
======== ======== ======== ========
Weighted average number
of common shares outstanding 23,722 18,888 23,125 18,840
======== ======== ======== ========
Net earnings per common
share - basic $ .32 $ .31 $ .63 $ .02
======== ======== ======== ========
Diluted:
Net earnings applicable
to common stock $ 7,617 $ 5,781 $ 14,593 $ 445
Elimination of interest expense
on 6% subordinated convertible
debentures(net after taxes) 265 227 542 *
Elimination of preferred stock
dividend requirement -- 929 -- *
-------- -------- -------- --------
Net earnings (as adjusted) $ 7,882 $ 6,937 $ 15,135 $ 445
======== ======== ======== ========
Weighted average number of common
shares outstanding 23,722 18,888 23,125 18,840
Weighted average shares issuable on
conversion of 6% subordinated
convertible debentures 1,279 1,350 1,307 *
Weighted average shares issuable on
conversion of Series 2
preferred stock -- 4,551 565 *
Weighted average shares issuable on
exercise of diluted stock options 298 241 289 *
-------- -------- -------- --------
Total 25,299 25,030 25,286 18,840
======== ======== ======== ========
Net earnings per common share
- diluted $ .31 $ .28 $ .60 $ .02
======== ======== ======== ========
* Anti-dilutive and accordingly not included in the computation.
5
1000
6-MOS
DEC-31-1998
JAN-01-1998
JUN-30-1998
51,196
0
216,711
(4,007)
209,787
508,344
160,253
(97,596)
576,062
228,933
28,206
0
0
23,734
276,363
576,062
485,886
486,512
357,633
461,523
714
0
(398)
24,673
10,080
14,593
0
0
0
14,593
.63
.60
