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MARCH 6 | BALANCE SHEET | KAMAN Kaman Music had fourth-quarter operating income of $4.9 million, a 6-percent drop from the $5.2 million brought in during the fourth quarter of 2005. Segment net sales for the 2006 fourth quarter were $58.7 million, including $15.2 million from Musicorp. Kaman Music sold $60.9 million last year, including $17.9 million from Musicorp. For the 2006 full year, operating income dropped 11 percent to $11.6 million. An up figure for the company was yearlong net sales, which rose 12 percent over last year, from $191.3 million to $214.8 million. “High energy prices and a weakening housing market took their toll on the music industry in 2006, with two national retailers filing for bankruptcy during the year,” said Paul Kuhn, chairman, president and CEO of Kaman Corp. “Despite that challenging environment, we experienced a year of meaningful achievement as Kaman continued to build the value of its music business. During the year, we completed the consolidation of the 2005 acquisition of Musicorp and continued to reduce Musicorp operating expenses. In 2006, we converted our distribution agreement with Sabian Cymbals into an exclusive distribution contract, expanding an important product offering to proprietary brand status and, on Jan. 1, 2007, Elixir Strings selected Kaman as its exclusive U.S. distributor. “The company has also used its sophisticated, large-scale business systems to create a proprietary software system link to our inventories for our customer base of several thousand retailers ranging from the industry’s largest national chains, which require such systems, to the smallest neighborhood music stores, which gain the benefit of greater efficiency. All of this should benefit the company when the outlook for musical instrument sales improves.” |
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