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No garage door manufacturer does more to ensure customer satisfaction than Clopay Building Products.
Our innovative new products let homeowners reflect their homes’ style and character. Our unrelenting commitment to quality and customer service ensures that our garage doors perform as beautifully as they look.
We’ve invested in new production equipment to drive our industry leading on-time delivery rates and completed shipment rates to even higher levels. We’re introducing exciting new designs to transform the garage door into a style statement, and motivate homeowners to buy sooner. It all adds up to customer and consumer satisfaction.
The company began fiscal 2003 in much the same way it began last year, with the most profitable first quarter in its history. Net sales for the quarter
were $302,154,000 compared to $301,902,000 for the first quarter of fiscal 2002. Income before income taxes increased to $21,081,000 from $20,294,000. Net income was $10,920,000 in the current quarter; the comparable amount in the first quarter of 2002 (before the cumulative effect of an accounting change) was $10,582,000. Basic earnings per share for the quarter was $.33 compared to $.32 last year and diluted earnings per share for the quarter was $.32 compared to $.31 last year. Last year’s net income and per share amounts are before a charge of $24,118,000 for the cumulative effect of a change in accounting principle to reflect the impairment of goodwill attributable to the company’s installation services segment.
The operational improvement for the quarter was primarily driven by the specialty plastic films and garage doors segments. Specialty plastic films continued its solid operating performance, impressively increasing sales and further improving profitability. Net sales of the garage doors segment were lower compared to last year primarily due to the divestiture in 2002 of Atlas, an unprofitable commercial operation. Garage doors’ profitability improved on the strength of manufacturing efficiencies and effective cost control, and was also positively impacted by the divestiture of the Atlas unit. The electronic information and communication systems segment, Telephonics, reported lower sales primarily due to certain programs nearing completion and delays in anticipated awards of new orders which are expected to pick up as
the year progresses. Earnings in this segment declined compared to last year principally due to the sales decrease and increased research and development expenditures.
In January, Telephonics announced that it was selected by Boeing Integrated Defense Systems to provide the Audio Intercom System for Boeing’s new 767 Tanker Transport Aircraft. The multi-year program will include systems for Boeing’s U.S. and International aircraft customers and is valued in excess of $5 million. In addition, substantial numbers of additional systems are anticipated for future sales worldwide.
The company’s operational performance in the first quarter of fiscal 2003 continued to generate substantial cash flow. Cash generated from operations was a healthy $10,000,000 which was used for capital expenditures and to acquire shares of the company’s common stock.
We look forward to reporting continued success throughout fiscal 2003.
Harvey R. Blau
Chairman of the Board
Robert Balemian
President | 
