x
|
Quarterly
Report Pursuant To Section 13 or 15(d) of the Securities Exchange
Act of
1934
|
For
The Quarterly Period Ended July
1, 2005
|
o
|
Transition
Report Pursuant To Section 13 or 15(d) of the Securities Exchange
Act of
1934 for the
Transition
Period From ___ to ___
|
Connecticut
|
06-0613548
|
|
(State
or other jurisdiction
|
(I.R.S.
Employer
|
|
of
incorporation or organization)
|
Identification
No.)
|
Class
A Common
|
22,187,133
|
Class
B Common
|
667,814
|
|
July
1, 2005
|
December
31, 2004
|
||||||||||||||
Assets:
|
||||||||||||||||
Current
assets:
|
||||||||||||||||
Cash
and cash equivalents
|
$
|
10,048
|
$
|
12,369
|
||||||||||||
Accounts
receivable, net
|
190,654
|
190,141
|
||||||||||||||
Inventories:
|
||||||||||||||||
Contracts
and other
|
||||||||||||||||
work
in process
|
$
|
77,514
|
$
|
72,057
|
||||||||||||
Finished
goods
|
16,375
|
21,544
|
||||||||||||||
Merchandise
for resale
|
107,694
|
201,583
|
103,117
|
196,718
|
||||||||||||
Deferred
income taxes
|
32,953
|
35,837
|
||||||||||||||
Other
current assets
|
14,989
|
15,270
|
||||||||||||||
Total
current assets
|
450,227
|
450,335
|
||||||||||||||
Property,
plant & equip., at cost
|
162,696
|
158,599
|
||||||||||||||
Less
accumulated depreciation
|
||||||||||||||||
and
amortization
|
113,741
|
109,641
|
||||||||||||||
Net
property, plant & equipment
|
48,955
|
48,958
|
||||||||||||||
Goodwill
|
41,152
|
40,933
|
||||||||||||||
Other
intangible assets, net
|
14,574
|
14,605
|
||||||||||||||
Deferred
income taxes
|
4,092
|
4,086
|
||||||||||||||
Other
assets, net
|
4,629
|
3,414
|
||||||||||||||
Total
assets
|
$
|
563,629
|
$
|
562,331
|
||||||||||||
|
July
1, 2005
|
December
31, 2004
|
|||||
Liabilities
and Shareholders' Equity:
|
|||||||
Current
liabilities:
|
|||||||
Notes
payable
|
$
|
4,266
|
$
|
7,255
|
|||
Current
portion of long-term debt
|
23,267
|
17,628
|
|||||
Accounts
payable - trade
|
76,834
|
74,809
|
|||||
Accrued
contract losses
|
22,140
|
37,852
|
|||||
Accrued
restructuring costs
|
3,649
|
3,762
|
|||||
Other
accrued liabilities
|
49,676
|
38,961
|
|||||
Advances
on contracts
|
16,605
|
16,721
|
|||||
Other
current liabilities
|
25,318
|
26,305
|
|||||
Income
taxes payable
|
2,704
|
2,812
|
|||||
Total
current liabilities
|
224,459
|
226,105
|
|||||
Long-term
debt, excl. current portion
|
16,873
|
18,522
|
|||||
Other
long-term liabilities
|
35,007
|
33,534
|
|||||
Shareholders'
equity
|
287,290
|
284,170
|
|||||
Total
liabilities and shareholders’ equity
|
$
|
563,629
|
$
|
562,331
|
For
the Three
Months
Ended
|
For
the Six
Months
Ended
|
||||||||||||
|
July
1, 2005
|
July
2, 2004
|
July
1, 2005
|
July
2, 2004
|
|||||||||
Net
sales
|
$
|
271,263
|
$
|
247,509
|
$
|
534,569
|
$
|
492,660
|
|||||
Costs
and expenses:
|
|||||||||||||
Cost
of sales
|
200,573
|
192,092
|
392,984
|
375,504
|
|||||||||
Selling,
general and
|
|||||||||||||
administrative
expense
|
64,023
|
57,952
|
126,201
|
116,672
|
|||||||||
Net
gain on sale of assets
|
(93
|
)
|
(235
|
)
|
(93
|
)
|
(235
|
)
|
|||||
Other
operating income
|
(525
|
)
|
(435
|
)
|
(983
|
)
|
(753
|
)
|
|||||
Interest
expense, net
|
638
|
949
|
1,350
|
1,744
|
|||||||||
Other
expense, net
|
470
|
177
|
708
|
661
|
|||||||||
265,086
|
250,500
|
520,167
|
493,593
|
||||||||||
Earnings
(loss) before income taxes
|
6,177
|
(2,991
|
)
|
14,402
|
(933
|
)
|
|||||||
Income
tax benefit (expense)
|
(3,420
|
)
|
1,289
|
(6,940
|
)
|
404
|
|||||||
Net
earnings (loss)
|
$
|
2,757
|
$
|
(1,702
|
)
|
$
|
7,462
|
$
|
(529
|
)
|
|||
Net
earnings (loss) per share:
|
|||||||||||||
Basic
|
$
|
.12
|
$
|
(.07
|
)
|
$
|
.33
|
$
|
(.02
|
)
|
|||
Diluted
(1)
|
$
|
.12
|
$
|
(.07
|
)
|
$
|
.33
|
$
|
(.02
|
)
|
|||
Weighted
average shares outstanding:
|
|||||||||||||
Basic
|
22,815
|
22,686
|
22,797
|
22,667
|
|||||||||
Diluted
|
23,693
|
22,686
|
23,671
|
22,667
|
|||||||||
Dividends
declared per share
|
$
|
.125
|
$
|
.11
|
$
|
.235
|
$
|
.22
|
|
For
the Six Months Ended
|
||||||
|
July
1, 2005
|
July
2, 2004
|
|||||
Cash
flows from operating activities:
|
|||||||
Net
earnings (loss)
|
$
|
7,462
|
$
|
(529
|
)
|
||
Depreciation
and amortization
|
4,577
|
4,634
|
|||||
Provision
for losses on accounts receivable
|
(27
|
)
|
289
|
||||
Net
gain on sale of assets
|
(93
|
)
|
(235
|
)
|
|||
Deferred
income taxes
|
3,308
|
-
|
|||||
Other,
net
|
1,982
|
1,815
|
|||||
Changes
in current assets and liabilities,
|
|||||||
excluding
effects of acquisitions:
|
|||||||
Accounts
receivable
|
(669
|
)
|
(23,200
|
)
|
|||
Inventory
|
(5,653
|
)
|
(6,250
|
)
|
|||
Income
taxes receivable
|
-
|
(1,552
|
)
|
||||
Accounts
payable
|
2,102
|
(1,972
|
)
|
||||
Accrued
contract losses
|
(15,693
|
)
|
4,930
|
||||
Accrued
restructuring costs
|
(113
|
)
|
(1,519
|
)
|
|||
Advances
on contracts
|
(116
|
)
|
(168
|
)
|
|||
Income
taxes payable
|
(79
|
)
|
6
|
||||
Changes
in other current assets and liabilities
|
9,735
|
6,947
|
|||||
Cash
provided by (used in) operating activities
|
6,723
|
(16,804
|
)
|
||||
Cash
flows from investing activities:
|
|||||||
Proceeds
from sale of assets
|
263
|
348
|
|||||
Expenditures
for property, plant & equipment
|
(4,129
|
)
|
(3,834
|
)
|
|||
Acquisition
of businesses, less cash acquired
|
(1,448
|
)
|
(399
|
)
|
|||
Other,
net
|
(343
|
)
|
(1,129
|
)
|
|||
Cash
provided by (used in) investing activities
|
(5,657
|
)
|
(5,014
|
)
|
|||
|
For
the Six Months Ended
|
||||||
|
July
1, 2005
|
July
2, 2004
|
|||||
Cash
flows from financing activities:
|
|||||||
Changes
in notes payable
|
(2,989
|
)
|
(451
|
)
|
|||
Changes
in debt
|
3,988
|
30,141
|
|||||
Proceeds
from exercise of employee stock plans
|
625
|
629
|
|||||
Purchases
of treasury stock
|
-
|
(4
|
)
|
||||
Dividends
paid
|
(5,011
|
)
|
(4,982
|
)
|
|||
Cash
provided by (used in) financing activities
|
(3,387
|
)
|
25,333
|
||||
Net
increase (decrease) in cash and cash equivalents
|
(2,321
|
)
|
3,515
|
||||
Cash
and cash equivalents at beginning of period
|
12,369
|
7,130
|
|||||
Cash
and cash equivalents at end of period
|
$
|
10,048
|
$
|
10,645
|
|
July
1, 2005
|
December
31, 2004
|
||||||||
Trade
receivables
|
$
|
93,273
|
$
|
87,158
|
||||||
U.S.
Government contracts:
|
||||||||||
Billed
|
18,222
|
15,360
|
||||||||
Costs
and accrued profit - not billed
|
2,347
|
5,062
|
||||||||
Commercial
and other government contracts:
|
||||||||||
Billed
|
23,907
|
25,057
|
||||||||
Costs
and accrued profit - not billed
|
58,398
|
63,024
|
||||||||
Less
allowance for doubtful accounts
|
(5,493
|
)
|
(5,520)
|
|||||||
Total
|
$
|
190,654
|
$
|
190,141
|
Balance,
December 31, 2004
|
$
|
284,170
|
||
Net
earnings
|
7,462
|
|||
Foreign
currency translation adjustment
|
50
|
|||
Comprehensive
income
|
7,512
|
|||
Dividends
declared
|
(5,361
|
)
|
||
Employee
stock plans
|
969
|
|||
Balance,
July 1, 2005
|
$
|
287,290
|
|
Balance
at
|
Balance
at
|
||||||||||||||
|
December
31,
|
Cash
|
July
1,
|
|||||||||||||
2004
|
Additions
|
Payments
|
2005
|
|||||||||||||
Restructuring
costs
|
||||||||||||||||
Facility
closing
|
$
|
3,762
|
$
|
815
|
$
|
(928
|
)
|
$
|
3,649
|
|||||||
Total
restructuring costs
|
$
|
3,762
|
$
|
815
|
$
|
(928
|
)
|
$
|
3,649
|
Balance
at December 31, 2004
|
$
|
3,827
|
||
Warranty
costs incurred
|
(6
|
)
|
||
Product
warranty accrual
|
1,935
|
|||
Release
to income
|
(913
|
)
|
||
Balance
at July 1, 2005
|
$
|
4,843
|
|
For
the Three Months Ended
|
For
the Six Months Ended
|
|||||||||||
|
July
1, 2005
|
July
2, 2004
|
July
1, 2005
|
July
2, 2004
|
|||||||||
Service
cost for benefits earned
|
$
|
2,873
|
$
|
2,558
|
$
|
5,746
|
$
|
5,116
|
|||||
Interest
cost on projected
|
|||||||||||||
benefit
obligation
|
6,367
|
6,163
|
12,734
|
12,326
|
|||||||||
Expected
return on plan assets
|
(7,119
|
)
|
(7,169
|
)
|
(14,238
|
)
|
(14,338
|
)
|
|||||
Net
amortization and deferral
|
418
|
2
|
836
|
4
|
|||||||||
Net
pension cost
|
$
|
2,539
|
$
|
1,554
|
$
|
5,078
|
$
|
3,108
|
|
July
1, 2005
|
December
31, 2004
|
|||||
Identifiable
assets:
|
|||||||
Aerospace
|
$
|
283,028
|
$
|
289,343
|
|||
Industrial
Distribution
|
172,452
|
164,711
|
|||||
Music
|
77,546
|
76,764
|
|||||
Corporate
|
30,603
|
31,513
|
|||||
$
|
563,629
|
$
|
562,331
|
For
the Three Months Ended
|
For
the Six Months Ended
|
||||||||||||
|
July
1, 2005
|
July
2, 2004
|
July
1, 2005
|
July
2, 2004
|
|||||||||
Net
sales:
|
|||||||||||||
Aerospace
|
$
|
76,039
|
$
|
67,139
|
$
|
141,720
|
$
|
126,342
|
|||||
Industrial
Distribution
|
157,467
|
145,283
|
313,460
|
290,890
|
|||||||||
Music
|
37,757
|
35,087
|
79,389
|
75,428
|
|||||||||
$
|
271,263
|
$
|
247,509
|
$
|
534,569
|
$
|
492,660
|
||||||
Operating
income (loss):
|
|||||||||||||
Aerospace
|
$
|
9,533
|
$
|
(3,615
|
)
|
$
|
17,163
|
$
|
(589
|
)
|
|||
Industrial
Distribution
|
8,398
|
5,793
|
16,856
|
10,823
|
|||||||||
Music
|
1,854
|
1,363
|
4,428
|
3,344
|
|||||||||
Net
gain on sale of assets
|
93
|
235
|
93
|
235
|
|||||||||
Corporate
expense
|
(12,593
|
)
|
(5,641
|
)
|
(22,080
|
)
|
(12,341
|
)
|
|||||
Operating
income (loss)
|
7,285
|
(1,865
|
)
|
16,460
|
1,472
|
||||||||
Interest
expense, net
|
(638
|
)
|
(949
|
)
|
(1,350
|
)
|
(1,744
|
)
|
|||||
Other
expense, net
|
(470
|
)
|
(177
|
)
|
(708
|
)
|
(661
|
)
|
|||||
Earnings
(loss) before income taxes
|
$
|
6,177
|
$
|
(2,991
|
)
|
$
|
14,402
|
$
|
(933
|
)
|
|
For
the Three Months
|
For
the Six Months
|
|||||||||||||||
|
Ended
|
Ended
|
|||||||||||||||
|
July
1, 2005
|
July
2, 2004
|
July
1, 2005
|
July
2, 2004
|
|||||||||||||
Net
earnings/(loss):
|
|||||||||||||||||
|
|||||||||||||||||
As
reported
|
$
|
2,757
|
$
|
(1,702
|
)
|
$
|
7,462
|
$
|
(529
|
)
|
|||||||
Stock
compensation reported in net
|
|||||||||||||||||
earnings,
net of tax effect
|
2,579
|
(167
|
)
|
2,655
|
545
|
||||||||||||
Less
stock compensation expense, net
|
|||||||||||||||||
of
tax effect
|
(2,765
|
)
|
(19
|
)
|
(3,026
|
)
|
(917
|
)
|
|||||||||
|
|||||||||||||||||
Pro
forma net earnings/(loss)
|
$
|
2,571
|
$
|
(1,888
|
)
|
$
|
7,091
|
$
|
(901
|
)
|
|||||||
Earnings/(loss)
per share - basic:
|
|||||||||||||||||
As
reported
|
0.12
|
(0.07
|
)
|
0.33
|
(0.02
|
)
|
|||||||||||
Pro
forma
|
0.11
|
(0.08
|
)
|
0.31
|
(0.04
|
)
|
|||||||||||
Earnings/(loss)
per share - diluted:
|
|||||||||||||||||
As
reported
|
0.12
|
(0.07
|
)
|
*
|
0.33
|
(0.02
|
)
|
* | |||||||||
Pro
forma
|
0.11
|
(0.08
|
)
|
*
|
|
0.31
|
(0.04
|
)
|
* |
|
Segment
Information
|
||||||||||||
|
(In
millions)
|
||||||||||||
|
For
the Three Months
|
For
the Six Months
|
|||||||||||
Ended
|
Ended
|
||||||||||||
|
July
1, 2005
|
July
2, 2004
|
July
1, 2005
|
July
2, 2004
|
|||||||||
Net
sales:
|
|||||||||||||
Aerospace
|
$
|
76.0
|
$
|
67.1
|
$
|
141.7
|
$
|
126.4
|
|||||
Industrial
Distribution
|
157.5
|
145.3
|
313.5
|
290.9
|
|||||||||
Music
|
37.8
|
35.1
|
79.4
|
75.4
|
|||||||||
271.3
|
247.5
|
534.6
|
492.7
|
||||||||||
Operating
profit/(loss):
|
|||||||||||||
Aerospace
|
9.5
|
(3.6
|
)
|
17.2
|
(.6
|
)
|
|||||||
Industrial
Distribution
|
8.4
|
5.8
|
16.9
|
10.8
|
|||||||||
Music
|
1.9
|
1.4
|
4.4
|
3.4
|
|||||||||
Net
gain on sale of assets
|
.1
|
.2
|
.1
|
.2
|
|||||||||
Corporate
expense
|
(12.6
|
)
|
(5.7
|
)
|
(22.1
|
)
|
(12.4
|
)
|
|||||
Operating
profit/(loss)
|
7.3
|
(1.9
|
)
|
16.5
|
1.4
|
||||||||
Interest
expense, net
|
(.6
|
)
|
(.9
|
)
|
(1.4
|
)
|
(1.7
|
)
|
|||||
Other
expense, net
|
(.5
|
)
|
(.2
|
)
|
(.7
|
)
|
(.6
|
)
|
|||||
Earnings/(loss)
before income taxes
|
6.2
|
(3.0
|
)
|
14.4
|
(.9
|
)
|
|||||||
|
|||||||||||||
Income
tax benefit (expense)
|
(3.4
|
)
|
1.3
|
(6.9
|
)
|
.4
|
|||||||
Net
earnings (loss)
|
$
|
2.8
|
$
|
(1.7
|
)
|
$
|
7.5
|
$
|
(.5
|
)
|
Total
Number
|
||||||||
of
Shares
|
Maximum
|
|||||||
Purchased
as
|
Number
of
|
|||||||
Total
|
Part
of
|
Shares
That
|
||||||
Number
|
Average
|
Publicly
|
May
Yet Be
|
|||||
of
Shares
|
Price
Paid
|
Announced
|
Purchased
Under
|
|||||
Period
|
Purchased
|
per
Share
|
Plan
|
the
Plan
|
||||
04/02/05-
|
||||||||
04/29/05
|
-
|
-
|
269,607
|
1,130,393
|
||||
04/30/05-
|
||||||||
05/27/05
|
4
|
$14.67
|
269,611
|
1,130,389
|
||||
05/28/05-
|
||||||||
07/01/05
|
-
|
-
|
269,611
|
1,130,389
|
11
|
Earnings
Per Share Computation
|
31.1
|
Certification
of Chief Executive Officer Pursuant to Rule 13a-14 under the Securities
and Exchange Act of 1934
|
31.2
|
Certification
of Chief Financial Officer Pursuant to Rule 13a-14 under the Securities
and Exchange Act of 1934
|
32.1
|
Certification
of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as
adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
32.2
|
Certification
of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as
adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of
2002
|
KAMAN
CORPORATION
|
||
Registrant
|
||
Date:
August 3, 2005
|
By:
/s/ Paul R. Kuhn
|
|
Paul
R. Kuhn
|
||
Chairman,
President and
|
||
Chief
Executive Officer
|
||
(Duly
Authorized Officer)
|
Date:
August 3, 2005
|
By:
/s/ Robert M. Garneau
|
|
Robert
M. Garneau
|
||
Executive
Vice President and
|
||
Chief
Financial Officer
|
Exhibit
11
|
Earnings
Per Share Computation
|
Attached
|
Exhibit
31.1
|
Certification
of Chief Executive Officer
Pursuant
to Rule 13a-14 under the Securities and Exchange Act of
1934
|
Attached
|
Exhibit
31.2
|
Certification
of Chief Financial Officer
Pursuant
to Rule 13a-14 under the Securities and Exchange Act of 1934
|
Attached
|
Exhibit
32.1
|
Certification
of Chief Executive Officer
Pursuant
to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the
Sarbanes-Oxley Act of 2002
|
Attached
|
Exhibit
32.2
|
Certification
of Chief Financial Officer
Pursuant
to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of
the
Sarbanes-Oxley Act of 2002
|
Attached
|
|
For
the Three Months
|
For
the Six Months
|
|||||||||||
Ended
|
Ended
|
||||||||||||
|
July
1, 2005
|
July
2, 2004
|
July
1, 2005
|
July
2, 2004
|
|||||||||
Basic:
|
|||||||||||||
Net
earnings/(loss)
|
$
|
2,757
|
$
|
(1,702
|
)
|
$
|
7,462
|
$
|
(529
|
)
|
|||
Weighted
average number of
|
|||||||||||||
shares
outstanding
|
22,815
|
22,686
|
22,797
|
22,667
|
|||||||||
Net
earnings/(loss) per share-basic
|
$
|
.12
|
$
|
(.07
|
)
|
$
|
.33
|
$
|
(.02
|
)
|
|||
Diluted:
|
|||||||||||||
Net
earnings/(loss)
|
$
|
2,757
|
$
|
(1,702
|
)
|
$
|
7,462
|
$
|
(529
|
)
|
|||
Elimination
of interest expense
|
|||||||||||||
on
6% subordinated convertible
|
|||||||||||||
debentures
(net after taxes)
|
141
|
-
|
310
|
-
|
|||||||||
Net
earnings/(loss) (as adjusted)
|
$
|
2,898
|
$
|
(1,702
|
)
|
$
|
7,772
|
$
|
(529
|
)
|
|||
Weighted
average number of
|
|||||||||||||
shares
outstanding
|
22,815
|
22,686
|
22,797
|
22,667
|
|||||||||
Weighted
averages shares issuable
|
|||||||||||||
on
conversion of 6% subordinated
|
|||||||||||||
debentures
|
97
|
-
|
65
|
-
|
|||||||||
Weighted
average shares issuable
|
|||||||||||||
on
exercise of diluted stock options
|
781
|
-
|
809
|
-
|
|||||||||
Total
|
23,693
|
22,686
|
23,671
|
22,667
|
|||||||||
Net
earnings/(loss) per share - diluted
|
$
|
.12
|
$
|
(.07
|
)
|
$
|
.33
|
$
|
(.02
|
)
|
|
|
|
Date:
August 3, 2005
|
By:
|
/s/ Paul
R. Kuhn
|
|
Paul
R. Kuhn
|
|
|
Chairman,
President and
|
|
|
Chief
Executive Officer
|
|
|
|
Date:
August 3, 2005
|
By:
|
/s/ Robert
M. Garneau
|
|
Robert
M. Garneau
|
|
|
Executive
Vice President and
|
|
|
Chief
Financial Officer
|
|
|
|
Date:
August 3, 2005
|
By:
|
/s/ Paul
R. Kuhn
|
|
Paul
R. Kuhn
|
|
|
Chairman,
President and
|
|
|
Chief
Executive Officer
|
|
|
|
Date:
August 3, 2005
|
By:
|
/s/ Robert
M. Garneau
|
|
Robert
M. Garneau
|
|
|
Executive
Vice President and
|
|
|
Chief
Financial Officer
|