-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, A9IOeGXlwhFbfJmkBrbZ8Q/gOmdmqzE2JNbGy8JwUB549gSTvollScMhvSitEkDt hM7IEE8GgK5OWkkOCPOWoA== 0000866706-00-000004.txt : 20000215 0000866706-00-000004.hdr.sgml : 20000215 ACCESSION NUMBER: 0000866706-00-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19991231 FILED AS OF DATE: 20000214 FILER: COMPANY DATA: COMPANY CONFORMED NAME: ESCO ELECTRONICS CORP CENTRAL INDEX KEY: 0000866706 STANDARD INDUSTRIAL CLASSIFICATION: SEARCH, DETECTION, NAVIGATION, GUIDANCE, AERONAUTICAL SYS [3812] IRS NUMBER: 431554045 STATE OF INCORPORATION: MO FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 10-Q SEC ACT: SEC FILE NUMBER: 001-10596 FILM NUMBER: 542691 BUSINESS ADDRESS: STREET 1: 8888 LADUE RD STREET 2: SUITE 200 CITY: ST LOUIS STATE: MO ZIP: 63124 BUSINESS PHONE: 3142137200 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) (X) Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended December 31, 1999 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 number 1-10596 ESCO ELECTRONICS CORPORATION (Exact name of registrant as specified in its charter) Missouri 43-1554045 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) 8888 Ladue Road, Suite 200 63124-2090 St. Louis, Missouri (Zip Code) (Address of principal executive offices) Registrant's telephone number, including area code:(314) 213-7200 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 Number of common stock trust receipts outstanding at January 31, 2000: 12,267,062 receipts. PART I. FINANCIAL INFORMATION Item 1. Financial Statements ESCO ELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated Statements of Operations (Unaudited) (Dollars in thousands, except per share amounts) Three Months Ended December 31, ------------------ 1999 1998 ---- ---- Net sales $ 65,865 88,193 -------- ------ Costs and expenses: Cost of sales 46,237 65,299 Selling, general and administrative expenses13,752 17,221 Interest (income) expense (151) 1,732 Other, net 1,591 1,610 Gain on sale of property (2,239) - ------- ------ Total costs and expenses 59,190 85,862 ------ ------ Earnings before income taxes 6,675 2,331 Income tax expense 1,619 816 ------ ------ Net earnings before accounting change 5,056 1,515 ------ ------ Cumulative effect of accounting change, net of tax - (25,009) ------ -------- Net earnings (loss) $ 5,056 (23,494) ====== ======== Earnings (loss) per share: Earnings before accounting change - Basic $ .41 .12 - Diluted .40 .12 ====== ====== Net earnings (loss) - Basic $ .41 (1.91) - Diluted .40 (1.91) ====== ====== See accompanying notes to consolidated financial statements. ESCO ELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets (Dollars in thousands) December 31,September 30, 1999 1999 ---- ---- Assets (Unaudited) Current assets: Cash and cash equivalents $ 11,732 87,709 Accounts receivable, less allowance for doubtful accounts of $629 and $574, respectively 42,025 38,669 Costs and estimated earnings on long-term contracts, less progress billings of $10,614 and $11,778, respectively 5,712 4,019 Inventories 42,748 39,590 Other current assets 3,874 3,559 ------- ------- Total current assets 106,091 173,546 ------- ------- Property, plant and equipment, at cost 111,084 109,763 Less accumulated depreciation and amortization 40,776 38,445 ------- ------- Net property, plant and equipment 70,308 71,318 Excess of cost over net assets of purchased businesses, less accumulated amortization of $7,162 and $6,631, respectively 67,912 68,950 Deferred tax assets 43,161 44,783 Other assets 21,501 19,788 ------- ------- $308,973 378,385 ======= ======= Liabilities and Shareholders' Equity Current liabilities: Short-term borrowings and current maturities of long-term debt $ - 20,598 Accounts payable 23,709 26,339 Advance payments on long-term contracts, less costs incurred of $616 and $479, respectively 1,405 682 Accrued expenses and other current liabilities 22,306 30,598 ------- ------- Total current liabilities 47,420 78,217 ------- ------- Other liabilities 9,984 9,583 Long-term debt 920 41,896 ------- ------- Total liabilities 58,324 129,696 ------- ------- Commitments and contingencies - - Shareholders' equity: Preferred stock, par value $.01 per share, authorized 10,000,000 shares - - Common stock, par value $.01 per share, authorized 50,000,000 shares; issued 13,076,139 and 12,782,663 shares, respectively 131 128 Additional paid-in capital 203,831 201,719 Retained earnings since elimination of deficit at September 30, 1993 57,779 52,723 Accumulated other comprehensive loss (2,482) (1,870) ------- ------- 259,259 252,700 Less treasury stock, at cost; 807,125 and 404,625 common shares, respectively (8,610) (4,011) ------- ------- Total shareholders' equity 250,649 248,689 ------- ------- $308,973 378,385 ======= ======= See accompanying notes to consolidated financial statements. ESCO ELECTRONICS CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows (Unaudited) (Dollars in thousands) Three Months Ended December 31, ------------------ 1999 1998 ---- ---- Cash flows from operating activities: Net earnings (loss) $ 5,056 (23,494) Adjustments to reconcile net earnings (loss) to net cash used by operating activities: Depreciation and amortization 3,626 4,501 Changes in operating working capital, net of accounting change (18,721) (19,019) Effect of accounting change, net of tax - 25,009 Other (81) 2,751 ------- ------ Net cash used by operating activities (10,120) (10,252) -------- -------- Cash flows from investing activities: Capital expenditures (1,852) (1,681) Acquisition of businesses, less cash acquired - - ------ ------ Net cash used by investing activities (1,852) (1,681) ------ ------ Cash flows from financing activities: Net increase (decrease) in short-term borrowings (12,506) 16,500 Proceeds from long-term debt 80 96 Principal payments on long-term debt (49,148) (2,108) Purchases of common stock into treasury (4,613) (1,562) Other 2,182 (52) ------ ------ Net cash provided (used) by financing activities (64,005) 12,978 ------ ------ Net increase (decrease) in cash and cash equivalents (75,977) 1,045 Cash and cash equivalents, beginning of period 87,709 4,241 ------ ------ Cash and cash equivalents, end of period $ 11,732 5,286 ====== ====== See accompanying notes to consolidated financial statements. ESCO ELECTRONICS CORPORATION AND SUBSIDIARIES Notes to Consolidated Financial Statements (Unaudited) 1. Basis of Presentation The accompanying consolidated financial statements, in the opinion of management, include all adjustments, consisting only of normal recurring accruals, necessary for a fair presentation of the results for the interim periods presented. The consolidated financial statements are presented in accordance with the requirements of Form 10-Q and consequently do not include all the disclosures required by generally accepted accounting principles. For further information refer to the consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended September 30, 1999. Certain prior year amounts have been reclassified to conform to the fiscal 2000 presentation. The results for the three month period ended December 31,1999 are not necessarily indicative of the results for the entire 2000 fiscal year. On September 30, 1999, the Company sold its last major defense business, Systems & Electronics Inc. (SEI) for $85 million in cash, less working capital adjustments. The prior year amounts include the operating results of SEI for the entire year. The Company has provided a reconciliation of reported earnings to "adjusted" earnings within "Item 2. Management's Discussion and Analysis (MD&A)" noted below. 2. Earnings (Loss) Per Share Basic earnings per share is calculated using the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated using the weighted average number of common shares outstanding during the period plus shares issuable upon the assumed exercise of dilutive common share options and performance shares by using the treasury stock method. The net loss per share for the first three months of fiscal 1999, for both basic and diluted loss per share, is calculated using the weighted average number of common shares outstanding during the period. The number of shares used in the calculation of earnings (loss) per share for each period presented is as follows (in thousands): Three Months Ended December 31, ------------ 1999 1998 ---- ---- Weighted Average Shares Outstanding - Basic 12,343 12,310 Dilutive Options and Performance Shares 246 312 ------ ------ Adjusted Shares- Diluted 12,589 12,622 ====== ====== Options to purchase approximately 395,000 shares of common stock at prices ranging from $11.44-$19.22 per share and options to purchase 298,000 shares of common stock at approximately $10.00 - $19.22 were outstanding during the three month periods ended December 31, 1999 and 1998,respectively, but were not included in the respective computations of diluted EPS because the options' exercise price was greater than the average market price of the common shares. These options expire in various periods through 2009. Approximately 136,000 and 166,000 performance shares were outstanding but unearned at December 31, 1999, and 1998, respectively, and therefore, were not included in the respective computations of diluted EPS. The unearned performance shares expire in 2001. 3. Inventories Inventories consist of the following (dollars in thousands): December 31, September 30, 1999 1999 ---- ---- Finished goods $ 11,109 11,387 Work in process, including long-term contracts 16,934 14,517 Raw materials 14,705 13,686 ------ ------ Total inventories $ 42,748 39,590 ====== ====== 4. Change in Accounting Principle During the first quarter of fiscal 1999, the Company adopted the provisions of Statement of Position (SOP) 98-5,"Reporting on the Costs of Start-up Activities". This SOP provides guidance on accounting for start-up activities, including precontract costs and organization costs. The adoption of SOP 98-5 resulted in a non-cash, after-tax charge of approximately $25 million, which was recognized as a cumulative effect of an accounting change in the prior year first quarter ended December 31, 1998. 5. Comprehensive Income (Loss) Effective October 1, 1998, the Company adopted Statement of Financial Accounting Standards (SFAS) No. 130, "Reporting Comprehensive Income". SFAS No. 130 requires the Company to disclose all non-owner changes included in equity but not included in net earnings (loss) in a financial statement that is displayed with the same prominence as other financial statements. Comprehensive income (loss) for the three-month periods ended December 31, 1999 and 1998 was $4.4 million and ($23.5) million, respectively. The Company's comprehensive income and loss is impacted only by foreign currency translation adjustments. 6. Business Segment information The Company is organized based on the products and services that it offers. Beginning with the first quarter of fiscal 2000, the operating results of Comtrak Technologies, L.L.C (Comtrak) are included within the Company's Communications segment. This change from September 30, 1999 is the result of the consolidation of Distribution Control Systems, Inc. (DCSI) and Comtrak under common management, and the move of Comtrak operations into the DCSI operating facility. This consolidation occurred in the quarter ended December 31, 1999. ($ in millions) Three Months ended December 31, ------------ Net Sales 1999 1998 --------- ---- ---- Filtration/Fluid Flow $43.2 40.0 Test 8.7 7.1 Communications 10.5 4.8 Other 3.5 3.8 Divested Business - 32.5 ---- ---- Consolidated totals $65.9 88.2 ==== ==== Operating Profit (Loss) ---------------------- Filtration/Fluid Flow $ 3.4 3.4 Test .7 .5 Communications 2.3 .3 Other (.5) (.2) Divested Business - 1.7 ----- ---- Consolidated totals $ 5.9 5.7 ===== ==== Item 2. Management's Discussion and Analysis of Results of Operations and Financial Condition Reconciliation of Adjusted Net Earnings - 1999 The following table is not intended to present prior year net earnings as defined within generally accepted accounting principles (GAAP), and is presented for informational purposes only. The table is comparable to the full year table presented in the 1999 Annual Report to Shareholders (page 11). The table provides a reconciliation between the 1999 reported financials and what Management believes the 1999 operating results may have been after removing certain nonrecurring items and assuming that all of the actions taken during 1999 to reorient the business were complete at the beginning of the period. Management believes the estimated 1999 adjusted operating results provide a meaningful presentation for purposes of analyzing ESCO's ongoing financial performance. Three Months Ended December 31, 1998 ------------------------------------ (a) (b) Elimination Adjusting ($ in millions, rounded) Reported of SEI Items Adjusted - ------------------------ -------- ------ ----- -------- Net sales $88.2 32.5 - $55.7 ---- ---- ----- ---- Cost of sales 65.3 25.7 (.2) 39.4 SG&A expenses 17.2 5.2 .2 12.2 Interest expense (income) 1.8 .2 (1.8) (.2) Other, net 1.6 .1 - 1.5 ---- ---- ---- ---- Total costs and expenses 85.9 31.2 (1.8) 52.9 ---- ---- ---- ---- Earnings before tax 2.3 1.3 1.8 2.8 Income tax expense .8 - .2 1.0 ---- ---- ---- ---- Net earnings before accounting change 1.5 1.3 1.6 1.8 Cumulative effect of accounting change, net of tax (25.0) - 25.0 - ---- ---- ---- ---- Net earnings (loss) $(23.5) 1.3 26.6 $1.8 ==== ==== ==== ==== (a) Represents the operations of SEI, which were included in the ESCO consolidated first quarter 1999 GAAP reported results of operations. (b) Represents the adjusting items as explained in detail in the 1999 Annual Report to Shareholders (page 11), including: the operating results of Rantec's microwave business which is being offered for sale; the adjustment to the corporate office operating expenses resulting from the 1999 actions; the estimated net interest impact of the SEI transaction proceeds; and any related tax adjustment. Results of Operations- Three months ended December 31, 1999 - --------------------- compared with three months ended December 31, 1998. NET SALES Net sales of $65.9 million for the first quarter of fiscal 2000 decreased $22.3 million from reported net sales of $88.2 million for the first quarter of fiscal 1999 due to the divestiture of SEI. The prior year amount included SEI sales of $32.5 million. Excluding SEI from the prior year amounts, first quarter sales increased $10.2 million (18.3%) over 1999 "adjusted" sales of $55.7 million. Filtration/Fluid Flow - --------------------- Net sales of $43.2 million in the first quarter of fiscal 2000 were 8.0% higher than prior year sales of $40.0 million. The increase was primarily the result of new product introductions and increases in microfiltration sales. Increased shipments of disposable water filter cartridges and automotive transmission sump filters and fuel filters also contributed to the sales growth. Test - ---- Net sales of $8.7 million increased 22.5% in fiscal 2000 over the $7.1 million of net sales in fiscal 1999. The increase is primarily due to additional revenue related to the General Motors contract to design and build an electromagnetic compatibility (EMC) test complex. Communications - -------------- Net sales of $10.5 million in fiscal 2000 were 118.8% higher than the $4.8 million of sales recorded in fiscal 1999. The large increase is the result of significantly higher shipments to Wisconsin Public Service Corporation (WPS) and the Puerto Rico Electric Power Authority (PREPA) to provide Automatic Meter Reading (AMR) systems. Other - ----- Sales were $3.5 million in fiscal 2000 and $3.8 million in fiscal 1999. The sale of the Rantec microwave antenna business is still being actively pursued. ORDERS AND BACKLOG Firm order backlog was $147.9 million at December 31, 1999, compared with $142.9 million at September 30, 1999. Orders totaling $70.9 million were received in the first quarter of fiscal 2000, with the majority of the orders relating to Filtration / Fluid Flow products. GROSS PROFIT The gross profit margin was 29.8% in the first quarter of fiscal 2000 and 26.0% in the first quarter of fiscal 1999 as reported. The fiscal 1999 "adjusted" gross margin was 29.2%. The gross margin increased compared to the reported 1999 results primarily due to the lower margins related to the former defense subsidiary, SEI. Gross profit margin increased compared to "adjusted" 1999 due to changes in sales mix. SELLING, GENERAL AND ADMINISTRTIVE EXPENSES Selling, general and administrative (SG&A) expenses for the first quarter of fiscal 2000 were $13.7 million, or 20.9% of net sales, compared with $17.2 million, or 19.5% of net sales. "Adjusted" SG&A expense was $12.2 million, or 21.9% of net sales for the same period a year ago. The percentage decrease from "adjusted" 1999 is the result of favorable sales leverage achieved on the higher sales volume. OPERATING PROFIT Operating profit of $5.9 million for the first quarter of fiscal 2000 increased 3.5% from reported operating profit of $5.7 million for the first quarter of fiscal 1999. The prior year operating profit amount included $1.7 million related to SEI. Current year operating profit increased $1.9 million (47.5%) over prior year "adjusted" operating profit of $4.1 million. Filtration/Fluid Flow - --------------------- Operating profit was $3.4 million in both periods presented. The current year was impacted by costs related to the consolidation of the microfiltration business. In addition, the prior year period was favorably impacted by the close out of several high profit margin programs. Test - ---- Operating profit of $.7 million increased 40.0% in fiscal 2000 over the $.5 million of operating profit in fiscal 1999. The increase is primarily due to additional revenue related to the General Motors contract. Communications - -------------- Operating profit of $2.3 million in fiscal 2000 was $2.0 million (666%) higher than the $.3 million of operating profit in fiscal 1999. The large increase is the result of significantly higher shipments to WPS and PREPA as described above. Other - ----- Operating loss was ($.5) million in fiscal 2000 and ($.2) million in fiscal 1999, and primarily relates to the operations of the Rantec microwave antenna business, which is being offered for sale. INTEREST (INCOME) EXPENSE Interest income was $.2 million versus interest expense of $1.7 million in the first quarter of fiscal 1999. The positive change is due to the absence of debt in the current period. All outstanding debt, excluding approximately $1 million of foreign debt, was repaid in October 1999 with the proceeds from the sale of SEI. OTHER COSTS AND EXPENSES, NET Other costs and expenses, net, were $1.6 million in both periods presented. The current year amounts are comprised of amortization expense of $.5 million and $.3 million related to goodwill and patents, respectively. The balance relates to miscellaneous costs. GAIN ON THE SALE OF PROPERTY The gain relates to the sale of the Riverhead, New York property, used by the Company's former Hazeltine subsidiary. The property was sold for $2.6 million, consisting of $.5 million in cash and a $2.1 million interest-bearing, 18-month note receivable. INCOME TAX EXPENSE The effective income tax rate in the first quarter of fiscal 2000 was 24.3% compared to 35.0% in the first quarter of fiscal 1999. The current period effective tax rate was favorably impacted by the $2.2 million gain on the sale of property, in which the Company recognized zero tax expense. The deferred tax asset related to the book versus tax basis in the property was fully reserved in the deferred tax asset valuation allowance existing at September 30, 1999. Excluding the gain on the sale of property, the effective income tax rate was 36.5%, and included a settlement related to certain state tax liabilities. Management estimates the annual effective tax rate, excluding the gain on the sale of property, for fiscal 2000 to be approximately 35%. Financial Condition - ------------------- Working capital decreased to $58.7 million at December 31, 1999 from $95.3 million at September 30, 1999. The decrease is primarily due to the use of cash to repay all debt outstanding at September 30, 1999, except for the $0.9 million of foreign debt outstanding at December 31, 1999. During the first three months of fiscal 2000, accounts receivable increased by $3.4 million as a result of the timing of sales and collections throughout the period. Costs and estimated earnings on long-term contracts and inventories increased in the aggregate by $4.9 million primarily due to increased production requirements to satisfy additional sales expectations. Accounts payable and accrued expenses decreased by $10.9 million due to the timing of payments related to the September 30, 1999 divestiture of SEI. Net cash used by operating activities was $10.1 million in the first three months of fiscal 2000 compared to net cash used by operating activities of $10.3 million in the same period of fiscal 1999. The cash used by operating activities in fiscal 2000 was primarily impacted by divestiture related (SEI) payments and the above mentioned inventory requirements. Cash flow from operations and borrowings under the bank credit facility are expected to provide adequate resources to meet the Company's capital requirements and operational needs for the foreseeable future. During the quarter ended December 31, 1999, the Company repurchased approximately 400,000 shares of ESCO common stock as part of its ongoing open market repurchase program. Since announcing the program in fiscal 1999, the Company has repurchased approximately 600,000 shares of the 1.3 million shares authorized under the current program. Capital expenditures were $1.9 million in the first three months of fiscal 2000 compared with $1.7 million in the comparable period of fiscal 1999. Major expenditures in the current period included manufacturing equipment used in the filtration / fluid flow business. The Year 2000 Issue - ------------------- The Company did not experience any significant problems, nor any operating inefficiencies, related to the Year 2000 issue. Forward Looking Statements - -------------------------- Statements in this report that are not strictly historical are "forward looking" statements within the meaning of the safe harbor provisions of the federal securities laws. Investors are cautioned that such statements are only predictions, and speak only as of the date of this report. Actual results may differ materially due to risks and uncertainties which are described in the Company's Form 10-K for fiscal year 1999 and on page 41 of the 1999 Annual Report to Shareholders. Item 3. Quantitative and Qualitative Disclosures About Market Risk. Market risks relating to the Company's operations result primarily from changes in interest rates and changes in foreign currency exchange rates. Based on the current debt structure, the exposure to interest rate risk is not material. The Company is subject to foreign currency exchange rate risk relating to receipts from customers and payments to suppliers in foreign currencies. The Company hedges foreign currency commitments by purchasing foreign currency forward contracts. The company does not consider the market risk exposure relating to currency exchange to be material. PART II OTHER INFORMATION Item 1. Legal Proceedings In August 1994, a class action lawsuit was filed by Ronald and Angela Aprea and other persons against Hazeltine Corporation ("Hazeltine") in the Supreme Court of the State of New York, Suffolk County, alleging personal injury and property damage caused by Hazeltine's purported releases of hazardous materials at Hazeltine's facility at Greenlawn, New York. In connection with the Company's sale of Hazeltine in 1996, the Company indemnified Hazeltine against expenses and potential liability related to this suit. The suit sought compensatory and punitive damages, and an order enjoining Hazeltine from discharging further hazardous materials and for Hazeltine to remediate all damage to the property of the plaintiffs. It was the Company's position that no one and no property was injured by any release of hazardous materials from Hazeltine's facility. As of December 20, 1999, this suit was settled and discontinued with prejudice. The settlement cost to the Company was $45,000. Item 4. Submission of Matters to a vote of Security Holders. The Annual Meeting of the Company's shareholders was held on Thursday, February 3, 2000. Voted on at the meeting was the election of two directors. The voting for directors was as follows: For Withheld J. M. McConnell 11,057,229 136,120 D. C. Trauscht 11,057,825 135,524 Item 6. Exhibits and Reports on Form 8-K. a) Exhibits. NONE b) Reports on Form 8-K. The Company filed a Current Report on Form 8-K, dated October 13, 1999, during the quarter ended December 31, 1999 which reported "Item 2. Acquisition or Disposition of Assets" and "Item 7. Financial Statements and Exhibits". Financial statements filed with the report were: (1) Unaudited Pro Forma Consolidated Statements of Operations for the fiscal year ended September 30, 1998. (2) Unaudited Pro Forma Consolidated Statement of Operations for the nine months ended June 30, 1999. (3) Unaudited Pro Forma Consolidated Balance Sheet at June 30, 1999. SIGNATURE 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. ESCO ELECTRONICS CORPORATION /s/Gary E. Muenster Gary E. Muenster Vice President and Corporate Controller (As duly authorized officer and principal accounting officer of the registrant) Dated: February 14, 2000 EX-27 2
5 1,000 3-MOS SEP-30-2000 DEC-31-1999 11,732 0 42,654 629 42,748 106,091 111,084 40,776 308,973 47,420 0 0 0 131 250,518 308,973 65,865 65,865 46,237 59,989 (648) 0 (151) 6,675 1,619 5,056 0 0 0 0 .41 .40 THIS NUMBER DOES NOT INCLUDE $5.7 MILLION OF COSTS AND ESTIMATED EARNINGS ON LONG-TERM CONTRACTS.
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