Kaman

AR 13

Financials

Part II

Financials/Management's Discussion and Analysis of Financial Condition and Results of Operations/Selected Quarterly Financial Data

2013 First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Total
Year
(in thousands, except per share amounts)
Net sales $ 388,075 $ 431,725 $ 423,663 $ 438,343 $ 1,681,806
Gross profit $ 110,266 $ 121,257 $ 118,857 $ 116,244 $ 466,624
Earnings from continuing operations $ 7,154 $ 17,892 $ 18,695 $ 12,958 $ 56,699
Earnings (loss) from discontinued operations, net of tax $ — $ — $ 64 $ (83) $ (19)
Gain on disposal of discontinued operations, net of tax $ — $ — $ 420 $ — $ 420
Net earnings $ 7,154 $ 17,892 $ 19,179 $ 12,875 $ 57,100
Basic earnings per share
From continuing operations $ 0.27 $ 0.67 $ 0.70 $ 0.48 $ 2.12
From discontinued operations $ — $ — $ — $ — $ —
From disposal of discontinued operations $ — $ — $ 0.02 $ — $ 0.02
Basic earnings per share $ 0.27 $ 0.67 $ 0.72 $ 0.48 $ 2.14
Diluted earnings per share
From continuing operations $ 0.26 $ 0.67 $ 0.68 $ 0.48 $ 2.09
From discontinued operations $ — $ — $ — $ (0.01) $ (0.01)
From disposal of discontinued operations $ — $ — $ 0.02 $ — $ 0.02
Diluted earnings per share $ 0.26 $ 0.67 $ 0.70 $ 0.47 $ 2.10


2012 First
Quarter
Second
Quarter
Third
Quarter
Fourth
Quarter
Total
Year
(in thousands, except per share amounts)
Net sales $ 383,719 $ 400,226 $ 409,567 $ 399,316 $ 1,592,828
Gross profit $ 104,600 $ 113,832 $ 114,069 $ 109,472 $ 441,973
Earnings from continuing operations $ 9,092 $ 16,118 $ 14,784 $ 13,934 $ 53,928
Earnings (loss) from discontinued operations, net of tax $ 311 $ 361 $ 198 $ (1,096) $ (226)
Gain on disposal of discontinued operations, net of tax $ — $ — $ — $ 1,323 $ 1,323
Net earnings $ 9,403 $ 16,479 $ 14,982 $ 14,161 $ 55,025
Basic earnings per share
From continuing operations $ 0.35 $ 0.61 $ 0.56 $ 0.52 $ 2.04
From discontinued operations $ 0.01 $ 0.01 $ 0.01 $ (0.04) $ (0.01)
From disposal of discontinued operations $ — $ — $ — $ 0.05 $ 0.05
Basic earnings per share $ 0.36 $ 0.62 $ 0.57 $ 0.53 $ 2.08
Diluted earnings per share
From continuing operations $ 0.35 $ 0.61 $ 0.55 $ 0.52 $ 2.03
From discontinued operations $ 0.01 $ 0.01 $ 0.01 $ (0.04) $ (0.01)
From disposal of discontinued operations $ — $ — $ — $ 0.05 $ 0.05
Diluted earnings per share $ 0.36 $ 0.62 $ 0.56 $ 0.53 $ 2.07

Included within certain quarterly results are a variety of unusual or significant adjustments that may affect comparability. The most significant of such adjustments are described below as well as within Management's Discussion and Analysis of Financial Condition and Results of Operations and the Notes to Consolidated Financial Statements. Additionally, due to the nature of the earnings per share calculation, the sum of quarterly earnings per share data may not equal the cumulative earnings per share data for the year.

Nonrecurring items within the 2013 quarterly results are as follows: fourth quarter, a $2.1 million non-cash non-tax deductible charge for the impairment of goodwill related to VT Composites and a $0.4 million gain on discontinued operations due to a favorable tax result versus previous estimates and other activity related to the settlement of the closing balance sheet of the Distribution segment's Canadian operations.

Nonrecurring items within the 2012 quarterly results are as follows: fourth quarter, $3.3 million of net loss related to the resolution of a program related matter and $1.3 million gain on the sale of substantially all of the assets and liabilities of the Distribution segment's Canadian operations.