MOTORS AND GEARS, INC. CONSOLIDATED
STATEMENTS OF INCOME
(ALL DOLLAR AMOUNTS IN THOUSANDS)
Year Ended December 31,
1998 1997 1996
Net sales $275,833 $148,669 $117,571
Cost of sales, excluding
depreciation 180,453 97,084 75,751
Selling, general, and
administrative expenses,
excluding depreciation 37,559 13,370 8,796
Depreciation 4,492 4,311 2,960
Amortization of goodwill and
other intangibles 8,235 4,704 4,118
Management fees to affiliated
company 2,770 1,516 2,717
Operating income 42,324 27,684 23,229
Other (income) expense:
Interest expense:
Affiliated company - - 732
Other 32,994 22,363 10,402
Interest income (806) (463) (148)
Miscellaneous, net 110 - (67)
Income before income taxes and
extraordinary item 10,026 5,784 12,310
Provision/(benefit) for
income taxes (3,072) 2,429 5,290
Income before extraordinary item 13,098 3,355 7,020
Extraordinary loss, net of
income tax benefit of $1,620 - - 2,186
Net income $ 13,098 $ 3,355 $ 4,834
See accompanying notes to consolidated financial statements.
