--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K/A
(Amendment No. 1)
[X] ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE FISCAL YEAR ENDED JANUARY 3, 2004
COMMISSION FILE NUMBER 1-313
THE LAMSON & SESSIONS CO.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)
OHIO 34-0349210
------------------------------------------ ------------------------------------------
(STATE OF INCORPORATION) (I.R.S. EMPLOYER IDENTIFICATION NO.)
25701 SCIENCE PARK DRIVE, CLEVELAND, OHIO 44122
------------------------------------------------------
(ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (ZIP CODE)
216-464-3400
------------------------------------------------------
(REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE)
SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT
TITLE OF EACH CLASS NAME OF EACH EXCHANGE ON WHICH
REGISTERED
---------------------------------------- ----------------------------------------
COMMON SHARES, WITHOUT PAR VALUE NEW YORK STOCK EXCHANGE
PACIFIC STOCK EXCHANGE
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT: NONE
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 by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of Registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K [ ]
Indicate by check mark whether the Registrant is an accelerated filer (as
defined in Exchange Act Rule 12b-2). Yes [ ] No [X]
The aggregate market value of the voting stock held as of July 3, 2003 (the
last trading day of the Company's fiscal 2003 second quarter) by non-affiliates
of the Registrant was $55,237,331, based on the close price of $4.65 on the New
York Stock Exchange.
As of February 6, 2004 the Registrant had outstanding 13,787,145 common shares.
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
DOCUMENTS INCORPORATED BY REFERENCE
Portions of the Registrant's Proxy Statement for the Annual Meeting of
Shareholders to be held on April 30, 2004 are incorporated by reference into
Part III of this report.
EXPLANATORY NOTE:
The Lamson & Sessions Co. (the "Company") is filing this Form 10-K/A
(Amendment No. 1) to the Company's Annual Report on Form 10-K for the fiscal
year ended January 3, 2004, as filed by the Company on February 20, 2004 (the
"10-K"), to revise an inadvertent inaccuracy in Item 6 concerning 2003 Net
Earnings (Loss). The Company is not making any other changes to the 10-K.
The Company hereby amends Item 6 of the 10-K by striking all text in
the current Item 6 and replacing it with the following:
2
ITEM 6. SELECTED FINANCIAL DATA
FIVE-YEAR CONSOLIDATED FINANCIAL SUMMARY
FISCAL YEARS ENDED
(Dollars in thousands except per share data, shareholders, ----------------------------------------------------
ASSOCIATES AND PERCENTAGES) 2003 2002 2001 2000 1999
----------------------------------------------------------------------------------------------------------------
OPERATIONS:
NET SALES $343,835 $314,475 $352,672 $348,733 $291,381
Cost of products sold 286,300 252,499 291,272 260,114 229,981
-------- -------- -------- -------- --------
GROSS PROFIT 57,535 61,976 61,400 88,619 61,400
Operating expenses (1) 42,877 43,467 52,962 54,132 48,054
Net gain -- -- (4,550) -- --
Restructuring and impairment charge -- -- 6,805 -- --
-------- -------- -------- -------- --------
OPERATING INCOME 14,658 18,509 6,183 34,487 13,346
Interest expense, net 8,527 9,583 11,626 4,539 3,558
-------- -------- -------- -------- --------
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME
TAXES AND CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING
PRINCIPLE 6,131 8,926 (5,443) 29,948 9,788
Income tax provision (benefit) 2,391 3,900 (1,600) 8,500 (9,000)
-------- -------- -------- -------- --------
INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 3,740 5,026 (3,843) 21,448 18,788
Net loss from discontinued operations (2,738) -- -- -- --
Net cumulative effect of change in accounting principle -- (46,250) -- -- --
-------- -------- -------- -------- --------
NET INCOME (LOSS) $ 1,002 $(41,224) $ (3,843) $ 21,448 $ 18,788
======== ======== ======== ======== ========
----------------------------------------------------------------------------------------------------------------
YEAR-END FINANCIAL POSITION:
Current Assets $ 81,377 $ 84,764 $ 94,085 $134,906 $ 94,704
Property, Plant and Equipment 51,326 51,749 57,871 65,297 48,093
Total Assets 208,313 213,705 273,821 320,293 183,319
Current Liabilities 57,026 64,112 62,890 76,656 56,223
Long-Term Debt 82,990 84,350 104,266 130,276 36,919
Other Long-Term Liabilities 29,782 29,067 25,441 27,332 26,808
Shareholders' Equity 38,515 36,176 81,224 86,029 63,369
Working Capital 24,351 20,652 31,195 58,250 38,481
Capital Expenditures 8,562 3,952 7,980 11,085 7,563
----------------------------------------------------------------------------------------------------------------
STATISTICAL INFORMATION:
Average number of dilutive common shares outstanding 13,894 13,778 13,757 13,989 13,482
Number of shareholders of record 1,290 1,305 1,336 1,377 1,558
Number of associates 1,122 1,116 1,115 1,345 963
Book value per share $ 2.77 $ 2.63 $ 5.90 $ 6.15 $ 4.70
Market price per share $ 5.50 $ 3.40 $ 5.24 $ 10.50 $ 4.88
Market capitalization $ 75,829 $ 46,844 $ 72,195 $143,819 $ 65,584
Gross margin as a % of net sales 16.7% 19.7% 17.4% 25.4% 21.1%
Operating expenses as a % of net sales 12.5% 13.8% 15.0% 15.5% 16.5%
Operating margin as a % of net sales 4.3% 5.9% 1.8% 9.9% 4.6%
Cash provided by operating activities $ 9,711 $ 26,520 $ 30,076 $ 27,521 $ 12,198
Interest expense 8,527 9,583 11,626 4,539 3,558
Increase (decrease) in operating assets and liabilities 7,214 (5,921) (17,500) 13,656 7,726
-------- -------- -------- -------- --------
EBITDA (earnings before interest, taxes, depreciation
and amortization)(2) 25,452 30,182 24,202 45,716 23,482
Less: Depreciation and amortization 10,794 11,673 18,019 11,229 10,136
-------- -------- -------- -------- --------
Operating income $ 14,658 $ 18,509 $ 6,183 $ 34,487 $ 13,346
======== ======== ======== ======== ========
----------------------------------------------------------------------------------------------------------------
BASIC EARNINGS (LOSS) PER COMMON SHARE:
Earnings (Loss) from continuing operations before change
in accounting principle $ 0.27 $ 0.36 $ (0.28) $ 1.58 $ 1.40
(Loss) from discontinued operations, net of tax $ (0.20) -- -- -- --
Cumulative effect of change in accounting principle, net
of tax -- $ (3.36) -- -- --
NET EARNINGS (LOSS) $ 0.07 $ (2.99) $ (0.28) $ 1.58 $ 1.40
DILUTED EARNINGS (LOSS) PER COMMON SHARE:
Earnings (Loss) from continuing operations before change
in accounting principle $ 0.27 $ 0.36 $ (0.28) $ 1.53 $ 1.39
(Loss) from discontinued operations, net of tax $ (0.20) -- -- -- --
Cumulative effect of change in accounting principle, net
of tax -- $ (3.36) -- -- --
NET EARNINGS (LOSS) $ 0.07 $ (2.99) $ (0.28) $ 1.53 $ 1.39
---------------
(1) In 2002, the Company adopted SFAS No. 142, "Goodwill and Other Intangible
Assets," which eliminated the amortization of goodwill. Operating expenses
in 2001, 2000 and 1999 include $4,605, $971 and $313 in goodwill
amortization, respectively.
(2) EBITDA is a calculation used by management to measure liquidity and is
defined as operating income plus depreciation and amortization. EBITDA is
not a recognized term under accounting principles generally accepted in the
United States and does not purport to be an alternative to operating income
or to cash flows from operating activities as a measure of liquidity.
3
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) 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, on March 31, 2004.
THE LAMSON & SESSIONS CO.
By: /s/ James J. Abel
------------------------------------
James J. Abel
Executive Vice President,
Secretary,
Treasurer and Chief Financial
Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed below by the following persons on behalf of the Registrant and
in the capacities indicated as of February 19, 2004.
SIGNATURE TITLE
--------- -----
/s/ JOHN B. SCHULZE Chairman of the Board, President and
------------------------------------------------ Chief Executive Officer
John B. Schulze (Principal Executive Officer)
/s/ JAMES J. ABEL Executive Vice President, Secretary,
------------------------------------------------ Treasurer and Chief Financial Officer
James J. Abel (Principal Financial Officer)
/s/ LORI L. SPENCER Vice President and Controller
------------------------------------------------ (Principal Accounting Officer)
Lori L. Spencer
/s/ JAMES T. BARTLETT* Director
------------------------------------------------
James T. Bartlett
/s/ FRANCIS H. BEAM, JR.* Director
------------------------------------------------
Francis H. Beam, Jr.
/s/ MARTIN J. CLEARY* Director
------------------------------------------------
Martin J. Cleary
/s/ WILLIAM H. COQUILLETTE* Director
------------------------------------------------
William H. Coquillette
/s/ JOHN C. DANNEMILLER* Director
------------------------------------------------
John C. Dannemiller
/s/ GEORGE R. HILL* Director
------------------------------------------------
George R. Hill
/s/ A. MALACHI MIXON, III* Director
------------------------------------------------
A. Malachi Mixon, III
/s/ D. VAN SKILLING* Director
------------------------------------------------
D. Van Skilling
---------------
* The undersigned, by signing his name hereto, does sign and execute this Annual
Report on Form 10-K/A (Amendment No.1) pursuant to a Power of Attorney
executed on behalf of the above-named directors of The Lamson & Sessions Co.
and filed as Exhibit 24 to the 10-K on behalf of The Lamson & Sessions Co.
and each such person.
March 31, 2004 By /s/ James J. Abel
------------------------------------
James J. Abel
Attorney-in-fact
4
EXHIBIT NO. DESCRIPTION OF DOCUMENT
----------- -----------------------
31.1 Certification of John B. Schulze, Chief Executive Officer,
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2 Certification of James J. Abel, Chief Financial Officer,
pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1 Certification of John B. Schulze, Chief Executive Officer,
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2 Certification of James J. Abel, Chief Financial Officer,
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
5