SOLA International Announces Fiscal 2002 Fourth Quarter Results Consistent With Prior Guidance.Business Editors SAN DIEGO--(BUSINESS WIRE)--May 23, 2002 SOLA International Inc. (NYSE NYSE See: New York Stock Exchange :SOL), a global designer, manufacturer and distributor of spectacle Spectacle Speed (See SWIFTNESS.) Aïda opera renowned for its scenic grandeur; sometimes played with on-stage elephants. [Ital. lenses, today announced fourth quarter financial results which are consistent with guidance provided on the company's third quarter conference call. Fiscal Year 2002 Reported Results Fiscal year 2002 fourth quarter reported net income was $9.2 million, or $.37 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to a reported net loss of $2.4 million, or $.10 per share, in the year ago period. Full year 2002 reported net income was $19.1 million, or $.78 per diluted share, compared to a fiscal 2001 reported net loss of $66.5 million, or $2.77 per share. Fiscal year 2002 fourth quarter sales were $137.8 million, compared with $141.3 million in the year ago quarter. On a constant currency and comparable basis, sales increased 0.5% compared to the year ago quarter, with sales in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). and Rest of World increasing 2.5% and 6.7%,
respectively, and North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. decreasing 3.7%. Full year 2002 sales
were $529.5 million, compared to $545.4 million a year ago. On a
constant currency and comparable basis, full year sales increased 0.2%,
with sales in Europe and Rest of World increasing 4.1% and 2.0%,
respectively, and North America decreasing 3.6%. Value-added val·ue-add·edadj. Of or relating to the estimated value that is added to a product or material at each stage of its manufacture or distribution: products represented 73.8% of fiscal 2002 fourth quarter sales, compared to 72.1% in the year ago quarter, while full year fiscal 2002 value-added products represented 73.6% of sales, compared with 71.1% in fiscal 2001. Fiscal 2002 fourth quarter polycarbonate A category of plastic materials used to make a myriad of products, including CDs and CD-ROMs. volume and sales increased 29.4% and 38.3%, respectively, continuing the company's gains in this category. Reported gross profit for three months ended March 31, 2002 was $56.7 million, or 41.1% of sales, compared to $53.3 million, or 37.7% of sales, in the year ago quarter. For the 12 months ended March 31, 2002, reported gross profit was $214.3 million, or 40.5% of sales, compared to $195.9 million, or 35.9% of sales in fiscal 2001. Reported operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. for the three months ended March 31, 2002 were $39.7 million, or 28.9% of sales, compared to $50.3 million, or 35.6% of sales in the year ago quarter. For the 12 months ended March 31, 2002, reported operating expenses were $162.5 million, or 30.7% of sales, compared to $270.2 million, or 49.5% of sales, in fiscal 2001. Total debt, net of cash and cash equivalents, at March 31, 2002 was $214.1 million, compared to $233.3 million at March 31, 2001, a decrease of $19.2 million. The decrease was primarily related to improved working capital performance as a result of inventories decreasing $8.7 million and receivables Receivables An asset designation applicable to all debts, unsettled transactions or other monetary obligations owed to a company by its debtors or customers. Receivables are recorded by a company's accountants and reported on the balance sheet, and they and include all debts owed decreasing $8.5 million. Fiscal Year 2002 Adjusted Results Fiscal 2002 fourth quarter adjusted net income was $9.1 million, or $0.37 per diluted share, compared to adjusted net income of $8.6 million, or $0.36 per diluted share, in the year ago quarter. Adjusted net income excludes special charges, transition costs, goodwill amortization, currency devaluation Currency devaluation A deliberate downward adjustment in the official exchange rates established, or pegged, by a government against a specified standard, such as another currency or gold. , inventory write-offs and the unrealized net currency impact on long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. notes. Full year 2002 adjusted net income was $32.0 million, or $1.30 per diluted share, compared to fiscal 2001 adjusted net income of $30.4 million, or $1.26 per diluted share. Fiscal year 2002 fourth quarter adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become was $23.2 million, compared to $24.0 million in the year ago quarter. Full year 2002 adjusted EBITDA was $91.0 million, compared to full year 2001 adjusted EBITDA of $88.0 million. Excluding transition costs associated with the company's strategic initiatives, adjusted gross profit in the fiscal 2002 fourth quarter was $57.8 million, or 41.9% of sales, compared to adjusted gross profit in the fiscal 2001 fourth quarter of $60.6 million, or 42.9% of sales. The decrease as a percentage of sales compared to the prior year was primarily a result of unabsorbed overhead costs overhead costs see fixed costs. resulting from the company's decision to aggressively manage inventory balances in the quarter by temporarily lowering worldwide production volumes. Adjusted gross profit for the full year 2002 was $226.5 million, or 42.8% of sales, compared to adjusted gross profit of $232.7 million, or 42.7% of sales in fiscal 2001. The increase as a percentage of sales compared to the prior year was primarily related to favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. reductions in unit costs, which were partially offset by increased sales of lower-margin polycarbonate stock lenses. Excluding transition costs, goodwill amortization and special charges, adjusted operating expenses in the fiscal 2002 fourth quarter were $38.8 million, or 28.2% of sales, compared to adjusted operating expenses in the fiscal 2001 fourth quarter of $41.9 million, or 29.7% of sales. Adjusted operating expenses for fiscal 2002 were $154.1 million, or 29.1% of sales, compared to adjusted operating expenses of $166.2 million, or 30.5% of sales, in fiscal 2001. The three and 12 month decreases as a percentage of sales were primarily related to savings associated with the company's strategic initiatives. Management Commentary Jeremy Jeremy (jĕr`ĭmē), English form of Jeremiah. The Epistle of Jeremy is a title given to the sixth chapter of Baruch. C. Bishop, president and chief executive officer, commented, "Fiscal 2002 saw substantial progress in our program to strategically transition SOLA from a series of regionally focused manufacturing and distribution companies to a global, customer-driven enterprise. We completed the migration of production to low cost facilities; we consolidated con·sol·i·date v. con·sol·i·dat·ed, con·sol·i·dat·ing, con·sol·i·dates v.tr. 1. To unite into one system or whole; combine: distribution centers in North America and Asia; we centralized cen·tral·ize v. cen·tral·ized, cen·tral·iz·ing, cen·tral·iz·es v.tr. 1. To draw into or toward a center; consolidate. 2. product management and marketing; and we rationalized product specifications to global standards. "Fiscal 2002 also saw an improvement in working capital management, corporate financing and information systems infrastructure. We reduced inventory and accounts receivable accounts receivable n. the amounts of money due or owed to a business or professional by customers or clients. Generally, accounts receivable refers to the total amount due and is considered in calculating the value of a business or the business' problems in paying by a total of $17.2 million. We refinanced our syndicated credit facility with long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. . We commenced implementation of upgrades to our information systems and these are expected to improve the efficiency of our supply chain and enhance the sophistication so·phis·ti·cate v. so·phis·ti·cat·ed, so·phis·ti·cat·ing, so·phis·ti·cates v.tr. 1. To cause to become less natural, especially to make less naive and more worldly. 2. of our global financial analysis. "Commercially, we improved our sales mix sales mix See product mix. , gaining revenue and volume in higher-margin, faster-growth product segments; in particular, our strategic investments in polycarbonate were validated val·i·date tr.v. val·i·dat·ed, val·i·dat·ing, val·i·dates 1. To declare or make legally valid. 2. To mark with an indication of official sanction. 3. . Also, we continued our path of growing sales through our Rx laboratory network and increased revenues with major retail chains where our current top 10 global retail customers increased their purchases by approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. 25%, compared to fiscal 2001. "With regard to fiscal 2003, I am excited by the prospects of our global licensing agreement with Dupont Dupont, DuPont, Du Pont, or du Pont may refer to: Companies
oph·thal·mic adj. Of or relating to the eye; ocular. Ophthalmic Pertaining to the eye. lenses using the Dupont(TM) Teflon Teflon, trade name for a solid, chemically inert polymer of tetrafluoroethylene (C2F4), F2C=CF2. Stable up to temperatures around 572°F; (300°C;), Teflon is used in electrical insulation, gaskets, and in making (R) brand. This agreement is part of a long-term plan to communicate innovative lenses and lens treatments to the consumer. We believe that the quality of our new, internally developed coating, together with the instantly recognizable Teflon brand, will generate confidence and demand for anti-reflection coatings around the world. "In summary, we close the year having made substantial progress and now, with the strategic reorganization The process of carrying out, through agreements and legal proceedings, a business plan for winding up the affairs of, or foreclosing a mortgage upon, the property of a corporation that has become insolvent. of the company substantially complete, we believe it is the right time to implement our plan to restore revenue growth in the company. I am particularly pleased with the progress that Mark Ashcroft Ash·croft , Dame Peggy Originally Edith Margaret Emily Ashcroft. 1907-1991. British actress who won an Academy Award for A Passage to India (1984). has made during his first five months in charge of the North American operations North American operation Surgical oncology Radical surgery of a 'frozen pelvis', consisting of radical en bloc resection of the uterus and urinary bladder. See 'Frozen pelvis.'. Cf 'All-American' and 'South American' operations. . A robust strategic business plan has been developed, is now being implemented, and I expect its impact will be profound. Many elements of this business plan have not been included in our short term expectations due to current commercial confidentialities, and we look forward to future communications as significant events unfold unfold - inline . "As we invest in these growth strategies, we remain cautious in our short term expectations, anticipating that revenues will remain essentially flat for the first half of the fiscal year and resume growth in the second half. We anticipate reported net income in fiscal 2003, excluding the unrealized currency impact on long-term debt, will be in the range of $26.0 - $28.5 million, a growth of 36% - 49% from reported net income of $19.1 million in fiscal 2002. Fiscal 2003 will be impacted by increased operating expenses, primarily global insurance costs and increased pension expense, of approximately $5.0 million; also, increased depreciation expense and sales and marketing costs of $5.0 to $7.0 million associated with investments required to restore top-line growth to the business are anticipated. We expect approximately 40% of our earnings will be generated in the first half of the fiscal year as high cost inventory is liquidated DAMAGES, LIQUIDATED, contracts. When the parties to a contract stipulate for the payment of a certain sum, as a satisfaction fixed and agreed upon by them, for the not doing of certain things particularly mentioned in the agreement, the sum so fixed upon is called liquidated damages. (q.v. and increased operating expenses are absorbed Absorbed 1. In a general business sense, when a cost is treated as an expense instead of being passed on to the customer in the form of higher prices. 2. In underwriting, when an issue has been completely sold to the public. 3. without significantly higher sales. These estimates reflect the continuation continuation - continuation passing style of current activities and cautious estimates of the benefit of our growth strategies. Free cash flow, including the negative cash impact of restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). activities that will be completed in 2003, and after planned capital expenditures in the range of $25 - $30 million, is expected to equal or exceed net income." The company will host a conference call today at 5:00 p.m. Eastern Standard Time (2:00 p.m. Pacific Standard Time). In addition, investors and interested parties may listen to the call via Webcast at www.SOLA.com or www.Companyboardroom.com. This press release includes forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. within the meaning of Section 21E of the Securities Exchange Act of 1934, including statements relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc SOLA's potential growth prospects. Such forward-looking statements are subject to various risks and uncertainties, many of which are beyond the control of SOLA. Actual results could differ materially from the forward-looking statements as a result of, among other things, the impact of events resulting from the Sept. 11, 2001 terrorist attacks; the highly competitive nature of the eyeglass eye·glass n. 1. eyeglasses Glasses for the eyes. 2. A single lens in a pair of glasses; a monocle. 3. See eyepiece. 4. See eyecup. lens and coating industry; SOLA's need to develop new products; potential adverse developments in the domestic and foreign economic and political environment, including exchange rates, tariffs This is a list of tariffs and trade legislation:
A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the fiscal year ended March 31, 2001. The words "believe," "expect," "anticipate," "estimate" and similar expressions identify forward-looking statements. SOLA undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. SOLA International Inc. designs, manufactures and distributes a broad range of eyeglass lenses, primarily focusing on the faster-growing plastic lens segment of the global lens market, and particularly on higher-margin value-added products. SOLA's strong global presence includes manufacturing and distribution sites in three major regions: North America, Europe and Rest of World (primarily Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. , Asia and South America South America, fourth largest continent (1991 est. pop. 299,150,000), c.6,880,000 sq mi (17,819,000 sq km), the southern of the two continents of the Western Hemisphere. ) and approximately 7,000 employees in 28 countries servicing customers in over 50 markets worldwide. For additional information, visit the company's Web site at www.Sola.com.
Sola International Inc.
Unaudited Statements of Operations
(Amounts in thousands, except per share data)
Fourth Quarter Fourth Quarter
2002 2001
---- ----
Net sales $ 137,775 $ 141,332
Cost of sales 81,058 88,082
--------- ----------
Gross profit 56,717 53,250
--------- ----------
Research and development expenses 3,217 3,584
Selling and marketing expenses 25,478 26,990
General and administrative expenses 10,981 13,514
Amortization 11 1,857
Special charges 28 4,401
--------- ----------
Operating expenses 39,715 50,346
--------- ----------
Operating income 17,002 2,904
Interest income 661 755
Interest expense (7,465) (7,199)
Foreign currency gain 1,224 76
--------- ----------
Income/(loss) before
(provision)/benefit for
income taxes and minority
interest 11,422 (3,464)
(Provision)/benefit for income taxes (3,200) 796
Minority interest 949 238
--------- ----------
Net Income/(Loss) $ 9,171 $ (2,430)
========= ==========
Earnings/(loss) per share -- basic $ 0.37 $ (0.10)
========= ==========
Weighted average common shares
outstanding 24,464 23,699
========= ==========
Earnings/(loss) per share -- diluted $ 0.37 $ (0.10)
========= ==========
Weighted average common shares and
dilutive securities outstanding 24,939 23,699
========= ==========
Sola International Inc.
Unaudited Statements of Operations-with adjustments
(Amounts in thousands, except per share data)
Q4 2002 Q4 2002
As reported Adjustments (a) As adjusted
----------- -------------- -----------
Net sales $ 137,775 $ -- $ 137,775
Cost of sales 81,058 (1,053) 80,005
--------- ---------- ---------
Gross profit 56,717 1,053 57,770
--------- ---------- ---------
Research and development
expenses 3,217 (100) 3,117
Selling and marketing
expenses 25,478 (597) 24,881
General and administrative
expenses 10,981 (206) 10,775
Amortization 11 -- 11
Special charges 28 -- 28
--------- ---------- ---------
Operating expenses 39,715 (903) 38,812
--------- ---------- ---------
Operating income 17,002 1,956 18,958
Interest income 661 -- 661
Interest expense (7,465) -- (7,465)
Foreign currency gain 1,224 (2,011) (787)
--------- ---------- ---------
Income before
provision for income
taxes and minority
interest 11,422 (55) 11,367
Provision for income taxes (3,200) 15 (3,185)
Minority interest 949 -- 949
--------- ---------- ---------
Net Income $ 9,171 $ (40) $ 9,131
========= ========== =========
Earnings per share --
diluted $ 0.37 $ 0.37
========= =========
Weighted average common
shares and dilutive
securities outstanding 24,939 24,939
========= =========
(a) Adjustments include transition costs of $1,956 and unrealized net
currency gains on long-term notes of $2,011. Transition costs
relate to: (1) expenditures to execute the strategic actions
(e.g., certain employee and facility costs) and (2) expenses
incurred that will be eliminated upon completion of the strategic
actions (e.g., manufacturing variances associated with the
implementation of the strategic initiatives).
Sola International Inc.
Unaudited Statements of Operations-with adjustments
(Amounts in thousands, except per share data)
Q4 2001 Q4 2001
As reported Adjustments (a) As adjusted
----------- -------------- -----------
Net sales $ 141,332 $ -- $ 141,332
Cost of sales 88,082 (7,318) 80,764
--------- ------- ---------
Gross profit 53,250 7,318 60,568
--------- ------- ---------
Research and development
expenses 3,584 (300) 3,284
Selling and marketing
expenses 26,990 (1,380) 25,610
General and administrative
expenses 13,514 (507) 13,007
Amortization 1,857 (1,857) --
Special charges 4,401 (4,401) --
--------- ------- ---------
Operating expenses 50,346 (8,445) 41,901
--------- ------- ---------
Operating income 2,904 15,763 18,667
Interest income 755 -- 755
Interest expense (7,199) -- (7,199)
Foreign currency gain 76 -- 76
--------- ------- ---------
Income/(loss) before
(provision)/benefit
for income taxes and
minority interest (3,464) 15,763 12,299
(Provision)/benefit for income
taxes 796 (4,702) (3,906)
Minority interest 238 -- 238
--------- ------- ---------
Net Income/(Loss) $ (2,430) $ 11,061 $ 8,631
========= ========= =========
Earnings/(loss) per share --
diluted $ (0.10) $ 0.36
========= =========
Weighted average common
shares and dilutive
securities outstanding 23,699 23,894 (b)
========= =========
(a) Adjustments include special charges of $4,401, transition costs of
$8,724, goodwill amortization of $1,857, and inventory writeoffs
of $781. Transition costs relate to: (1) expenditures to execute
the strategic actions (e.g., certain employee and facility costs)
and (2) expenses incurred that will be eliminated upon completion
of the strategic actions (e.g., manufacturing variances associated
with the implementation of the strategic initiatives).
(b) The adjustments resulted in a net income position for the Company.
Accordingly, the fully diluted EPS calculation, as adjusted,
includes the dilutive effect of stock options excluded from "as
reported" results.
Sola International Inc.
Unaudited Statements of Operations
(Amounts in thousands, except per share data)
Fiscal Year Fiscal Year
2002 2001
---- ----
Net sales $ 529,505 $ 545,432
Cost of sales 315,213 349,556
--------- ---------
Gross profit 214,292 195,876
--------- ---------
Research and development expenses 13,053 14,857
Selling and marketing expenses 101,735 105,623
General and administrative expenses 47,683 52,006
Amortization 44 6,610
Special charges 28 91,065
--------- ---------
Operating expenses 162,543 270,161
--------- ---------
Operating income/(loss) 51,749 (74,285)
Interest income 2,302 2,123
Interest expense (30,875) (25,575)
Foreign currency (loss)/gain 1,859 (2,755)
--------- ---------
Income/(loss) before (provision)/
benefit for income taxes, minority
interest and extraordinary item 25,035 (100,492)
(Provision)/benefit for income taxes (7,010) 32,206
Minority interest 1,093 287
--------- ---------
Income/(loss) before extraordinary
item 19,118 (67,999)
Extraordinary item, net of tax -- 1,471
--------- ---------
Net income/(loss) $ 19,118 $ (66,528)
========= =========
Earnings/(loss) per share -- basic:
Before extraordinary item $ 0.79 $ (2.83)
Extraordinary item -- 0.06
--------- ---------
Earnings per share -- basic $ 0.79 $ (2.77)
========= =========
Weighted average common shares outstanding 24,067 24,049
========= =========
Earnings/(loss) per share -- diluted:
Before extraordinary item $ 0.78 $ (2.83)
Extraordinary item -- 0.06
--------- ---------
Earnings per share -- diluted $ 0.78 $ (2.77)
========= =========
Weighted average common shares and
dilutive securities outstanding 24,583 24,049
========= =========
Sola International Inc.
Unaudited Statements of Operations-with adjustments
(Amounts in thousands, except per share data)
Fiscal year Fiscal Year
2002 2002
As reported Adjustments(a) As adjusted
------------ -------------- -----------
Net sales $ 529,505 $ -- $ 529,505
Cost of sales 315,213 (12,203) 303,010
------------ -------------- -----------
Gross profit 214,292 12,203 226,495
------------ -------------- -----------
Research and development
expenses 13,053 (700) 12,353
Selling and marketing expenses 101,735 (3,329) 98,406
General and administrative
expenses 47,683 (4,415) 43,268
Amortization 44 -- 44
Special charges 28 -- 28
------------ -------------- -----------
Operating expenses 162,543 (8,444) 154,099
------------ -------------- -----------
Operating income 51,749 20,647 72,396
Interest income 2,302 -- 2,302
Interest expense (30,875) -- (30,875)
Foreign currency gain 1,859 (2,742) (883)
------------ -------------- -----------
Income before provision for
income taxes and minority
interest 25,035 17,905 42,940
Provision for income taxes (7,010) (5,013) (12,023)
Minority interest 1,093 -- 1,093
------------ -------------- -----------
Net Income $ 19,118 $ 12,892 $ 32,010
============ ============== ===========
Earnings per share -- diluted $ 0.78 $ 1.30
============ ===========
Weighted average common shares
and dilutive securities
outstanding 24,583 24,583
============ ===========
(a) Adjustments include transition costs of $20,647 and unrealized net
currency gains on long-term notes of $2,742. Transition costs
relate to: (1) expenditures to execute the strategic actions
(e.g., certain employee and facility costs) and (2) expenses
incurred that will be eliminated upon completion of the strategic
actions (e.g., manufacturing variances associated with the
implementation of the strategic initiatives).
Sola International Inc.
Unaudited Statements of Operations-with adjustments
(Amounts in thousands, except per share data)
Fiscal Year Fiscal Year
2001 2001
As reported Adjustments(a) As adjusted
----------- -------------- -----------
Net sales $ 545,432 $ -- $ 545,432
Cost of sales 349,556 (36,872) 312,684
--------- --------- ---------
Gross profit 195,876 36,872 232,748
--------- --------- ---------
Research and development
expenses 14,857 (800) 14,057
Selling and marketing
expenses 105,623 (2,409) 103,214
General and administrative
expenses 52,006 (3,091) 48,915
Amortization 6,610 (6,610) --
Special charges 91,065 (91,065) --
--------- --------- ---------
Operating expenses 270,161 (103,975) 166,186
--------- --------- ---------
Operating income/(loss) (74,285) 140,847 66,562
Interest income 2,123 -- 2,123
Interest expense (25,575) -- (25,575)
Foreign currency (loss)/
gain (2,755) 3,116 361
--------- --------- ---------
Income/(loss) before
(provision)/benefit for
income taxes, minority
interest and
extraordinary item (100,492) 143,963 43,471
(Provision)/benefit for
income taxes 32,206 (45,610) (13,404)
Minority interest 287 -- 287
--------- --------- ---------
Income/(loss) before
extraordinary item (67,999) 98,353 30,354
Extraordinary item, net of
tax 1,471 (1,471) --
--------- --------- ---------
Net Income/(Loss) $ (66,528) $ 96,882 $ 30,354
========= ========= =========
Earnings/(loss) per share
-- diluted:
Before extraordinary item $ (2.83) $ 1.26
Extraordinary item 0.06 --
--------- ---------
Earnings per share --
diluted $ (2.77) $ 1.26
========= =========
Weighted average common
shares and dilutive
securities outstanding 24,049 24,134 (b)
========= =========
(a) Adjustments include special charges of $91,065, transition costs
of $17,543, goodwill amortization of $6,610, Brazilian Real
devaluation of $3,116 and inventory writeoffs of $25,629.
Transition costs relate to: (1) expenditures to execute the
strategic actions (e.g., certain employee and facility costs) and
(2) expenses incurred that will be eliminated upon completion of
the strategic actions (e.g., manufacturing variances associated
with the implementation of the strategic initiatives).
(b) The adjustments resulted in a net income position for the company.
Accordingly, the fully diluted EPS calculation, as adjusted,
includes the dilutive effect of stock options excluded from "as
reported" results.
Sola International Inc.
Balance Sheet Data
(Amounts in thousands)
(Unaudited)
March 31, Dec. 31, March 31,
2002 2001 2001
---- ---- ----
Cash and cash equivalents $ 68,419 $ 53,338 $ 26,149
Trade accounts receivable, net 114,993 106,399 123,478
Inventories 82,586 93,430 91,302
Other assets 447,067 435,776 421,446
-------- -------- --------
Total assets $713,065 $688,943 $662,375
======== ======== ========
Trade payables, accruals and
other current liabilities $138,694 $145,951 $144,738
Notes payable and other debt 282,555 283,201 259,388
Other liabilities 30,454 11,121 22,874
-------- -------- --------
Total liabilities 451,703 440,273 427,000
Shareholders' equity 261,362 248,670 235,375
-------- -------- --------
Total liabilities and
shareholders' equity $713,065 $688,943 $662,375
======== ======== ========
Sola International Inc.
Cash Flow Data
(Amounts in thousands)
(Unaudited)
Fourth Quarter Fourth Quarter
2002 2001
---- ----
Net Income/(loss) $ 9,171 $ (2,430)
Depreciation and amortization 4,248 5,741
Changes in trading assets and
liabilities (3,542) 18,919
--------- ---------
Net cash provided by operating
activities 9,877 22,230
--------- ---------
Purchases of businesses -- (15,437)
Disposal of/(investment in)
trade investments and
joint ventures (62) 2
Capital expenditures (5,438) (5,269)
Mold expenditures (1,549) (519)
Other 6,079 7,892
--------- ---------
Net cash used in investing
activities (970) (13,331)
--------- ---------
Net cash provided by financing
activities 6,090 95
Effect of exchange rates 84 (242)
--------- ---------
Net increase in cash and
equivalents $ 15,081 $ 8,752
========= =========
Sola International Inc.
Cash Flow Data
(Amounts in thousands)
(Unaudited)
Fiscal Year Fiscal Year
2002 2001
---- ----
Net Income/(loss) $ 19,118 $(66,528)
Depreciation and amortization 18,586 26,608
Changes in trading assets and liabilities (15,853) 71,755
-------- --------
Net cash provided by operating
activities 21,851 31,835
-------- --------
Purchases of businesses -- (17,917)
Disposal of/(investment in) trade
investments and joint ventures 1,183 (1,335)
Capital expenditures (17,144) (20,923)
Mold expenditures (5,865) (5,352)
Other 6,178 7,906
-------- --------
Net cash used in investing
activities (15,648) (37,621)
-------- --------
Net cash provided by financing
activities 36,221 13,873
Effect of exchange rates (154) (790)
-------- --------
Net increase in cash and
equivalents $ 42,270 $ 7,297
======== ========
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