SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
X QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE
- --- SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED
June 30, 1999.
---------------
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)OF THE
- --- SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM
TO
--------------- --------------.
Commission File No. 0-1093
KAMAN CORPORATION
(Exact Name of Registrant)
Connecticut 06-0613548
(State of Incorporation) (I.R.S. Employer Identification No.)
1332 Blue Hills Avenue
Bloomfield, Connecticut 06002
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (860) 243-7100
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 the number of shares outstanding of each of the issuer's
classes of common stock as of July 31, 1999:
Class A Common 22,858,432
Class B Common 667,814
Page 1 of 15 Pages
<PAGE>
<PAGE>
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements:
Condensed Consolidated Balance Sheets(In thousands)
<TABLE>
June 30, December 31,
Assets 1999 1998
------ ----------------- ------------------
<S> <C> <C> <C> <C>
Current assets:
Cash and cash equivalents $ 99,223 $ 65,130
Accounts receivable (net of
allowance for doubtful
accounts of $4,135 in
1999, $4,047 in 1998) 159,624 213,128
Inventories:
Contracts and other
work in process 53,181 61,204
Finished goods 50,493 37,860
Merchandise for resale 110,272 213,946 108,833 207,897
------- -------
Other current assets 28,462 30,349
------- -------
Total current assets 501,255 516,504
Property, plant & equip., at cost 171,126 167,787
Less accumulated depreciation
and amortization 107,519 102,014
------- -------
Net property, plant & equipment 63,607 65,773
Other assets 4,866 4,953
-------- --------
$569,728 $ 587,230
======== ========
Liabilities and Shareholders' Equity
------------------------------------
<S> <C> <C> <C> <C>
Current liabilities:
Notes payable $ 5,264 $ 4,801
Accounts payable 48,918 51,571
Accrued liabilities 30,170 28,725
Advances on contracts 78,600 101,376
Other current liabilities 37,643 36,573
Income taxes payable 4,129 5,929
------- -------
Total current liabilities 204,724 228,975
Deferred credits 21,388 20,555
Long-term debt, excl. current portion 26,546 28,206
Shareholders' equity 317,070 309,494
-------- --------
$569,728 $587,230
======== ========
</TABLE>
- 2 -
<PAGE>
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 1. Financial Statements, Continued:
Condensed Consolidated Statements of Operations
(In thousands except per share amounts)
<TABLE>
For the Three Months For the Six Months
Ended June 30, Ended June 30,
-------------------- ------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues $246,685 $247,447 $496,516 $486,512
Costs and expenses:
Cost of sales 182,650 181,926 367,364 357,633
Selling, general and
administrative expense 50,999 52,334 103,950 103,890
Interest expense (income), net (365) (202) (525) (398)
Other expense (income), net 250 516 506 714
-------- -------- -------- --------
233,534 234,574 471,295 461,839
-------- -------- -------- --------
Earnings before income taxes 13,151 12,873 25,221 24,673
Income taxes 5,120 5,256 9,917 10,080
-------- -------- -------- --------
Net earnings $ 8,031 $ 7,617 $ 15,304 $ 14,593
======== ======== ======== ========
Net earnings per common share:
Basic $ .34 $ .32 $ .65 $ .63
Diluted $ .33 $ .31 $ .63 $ .60
======== ======== ======== ========
Dividends declared per share $ .11 $ .11 $ .22 $ .22
======== ======== ======== ========
</TABLE>
- 3 -
<PAGE>
<PAGE>
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 1. Financial Statements, Continued:
Condensed Consolidated Statements of Cash Flows
(In thousands)
<TABLE>
For the Six Months
Ended June 30,
--------------------
1999 1998
--------- --------
<S> <C> <C>
Cash flows from operating activities:
Net earnings $ 15,304 $ 14,593
Depreciation and amortization 5,969 5,160
Advances on contracts (22,776) 3,496
Income taxes payable (1,800) (33,791)
Changes in other current assets and liabilities 49,222 (30,016)
Other, net 1,214 400
-------- --------
Cash provided by (used in) operating
activities 47,133 (40,158)
-------- --------
Cash flows from investing activities:
Expenditures for property, plant & equipment (3,698) (10,107)
Other, net 95 (223)
-------- --------
Cash provided by (used in) investing
activities (3,603) (10,330)
-------- --------
Cash flows from financing activities:
Additions (reductions) to notes payable 463 (2,441)
Reductions to long-term debt (1,660) (1,661)
Purchase of treasury stock (3,945) (463)
Dividends paid (5,203) (4,873)
Other, net 908 1,148
-------- --------
Cash provided by (used in) financing
activities (9,437) (8,290)
-------- --------
Net increase (decrease) in cash and cash equivalents 34,093 (58,778)
Cash and cash equivalents at beginning of period 65,130 109,974
-------- --------
Cash and cash equivalents at end of period $ 99,223 $ 51,196
======== ========
</TABLE>
- 4 -
<PAGE>
<PAGE>
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 1. Financial Statements, Continued:
Notes to Condensed Consolidated Financial Statements
(In thousands except share amounts)
Basis of Presentation
- ----------------------
The December 31, 1998 condensed consolidated balance sheet
amounts have been derived from the previously audited consolidated
balance sheet of Kaman Corporation and subsidiaries.
In the opinion of management, the balance of the condensed
financial information reflects all adjustments which are necessary
for a fair presentation of the financial position, results of
operations and cash flows for the interim periods presented and
are of a normal recurring nature, unless otherwise disclosed in
this report.
The statements should be read in conjunction with the notes to
the consolidated financial statements included in Kaman
Corporation's 1998 Annual Report.
Cash Flow Items
- ---------------
Cash payments for interest were $1,230 and $1,316 for the six
months ended June 30, 1999 and 1998, respectively. Cash
payments for income taxes for the comparable periods were $11,351
and $42,456, respectively.
Comprehensive Income
- --------------------
Comprehensive income was $15,417 and $14,518 for the six months
ended June 30, 1999 and 1998, respectively, as the result of
foreign currency translation adjustments.
- 5 -
<PAGE>
<PAGE>
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 1. Financial Statements, Continued:
Notes to Condensed Consolidated Financial Statements
(In thousands except share amounts)
Business Segments
- -----------------
Summarized financial information by business segment is as follows:
<TABLE>
For the Three Months For the Six Months
Ended June 30, Ended June 30,
--------------------- --------------------
1999 1998 1999 1998
--------- --------- --------- --------
<S> <C> <C> <C> <C>
Net sales:
Aerospace $ 97,177 $ 90,185 $189,939 $173,973
Industrial Distribution 125,826 130,437 254,483 256,862
Music Distribution 23,297 26,484 51,311 55,051
-------- -------- -------- --------
$246,300 $247,106 $495,733 $485,886
======== ======== ======== ========
Operating profit:
Aerospace $ 12,688 $ 10,780 $ 23,072 $ 21,008
Industrial Distribution 3,169 5,688 7,176 10,519
Music Distribution 364 751 1,660 1,754
-------- -------- -------- --------
16,221 17,219 31,908 33,281
Interest, corporate and
other expense, net (3,070) (4,346) (6,687) (8,608)
-------- -------- -------- --------
Earnings before income
taxes $ 13,151 $ 12,873 $ 25,221 $ 24,673
======== ======== ======== ========
June 30, December 31,
1999 1998
-------- --------
Identifiable assets:
Aerospace $245,727 $294,566
Industrial Distribution 159,601 160,873
Music Distribution 54,028 54,577
Corporate 110,372 77,214
-------- --------
$569,728 $587,230
======== ========
</TABLE>
- 6 -
<PAGE>
<PAGE>
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
Results of Operations
Consolidated revenues for the quarter ended June 30, 1999 were
level compared to the same period of 1998, while consolidated
revenues for the six month period ended June 30, 1999 were up 2%
compared to the same period of 1998.
Aerospace segment sales increased about 8% and 9% for the second
quarter and six months ended June 30, 1999, respectively, compared
to the same periods of 1998, largely due to revenue recorded for
the Australia and New Zealand SH-2 helicopter programs.
The Aerospace segment's principal programs include the SH-2G multi-
mission naval helicopter, the K-MAX (Registered Trademark)
helicopter, subcontract work involving airframe structures, and the
manufacture of niche market products such as self-lubricating
bearings and driveline couplings for aircraft applications.
The SH-2G helicopter program generally involves retrofit of the
corporation's SH-2F helicopters, previously manufactured for the
U.S. Navy (and currently in desert storage) to the SH-2G
configuration. The corporation completed its first international
SH-2G delivery to the Republic of Egypt last year and is currently
performing this work for the governments of Australia and New
Zealand.
The corporation has commercial sale contracts with the Commonwealth
of Australia and the Government of New Zealand for the supply of
retrofit SH-2G aircraft. The program for Australia involves eleven
(11) helicopters (incorporating a new cockpit and new weapons and
sensors) with support, including a support services facility, for
the Royal Australian Navy. This contract has an anticipated value
of nearly $600 million (US), of which about 38% has now been
recorded as revenue. The program for New Zealand involves four (4)
aircraft, and support, for New Zealand defense forces. The
contract has an anticipated value of nearly $170 million (US), of
which about 39% has now been recorded as revenue. In addition, the
Government of New Zealand has recently indicated an intention to
purchase one (1) additional SH-2G aircraft. This work is
contingent upon the negotiation of a contract amendment between the
parties and would have an anticipated value, including spares and
support, of approximately $30 million (US).
Work is proceeding on both the Australia and New Zealand programs
and deliveries are expected to begin in the 2000 - 2001 time frame.
- 7 -
<PAGE>
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
The corporation is also providing on site support in the Republic
of Egypt for that country's program involving ten (10) SH-2G
helicopters that were delivered last year under Egypt's foreign
military sale agreement with the U.S. Navy.
The corporation continues efforts to build and further enhance
familiarization with the SH-2's capabilities among various foreign
governments that are in the process of developing naval helicopter
requirements. This market is highly competitive and naturally
influenced by economic and political conditions. The corporation
is pursuing this potential SH-2 business, including possible
further orders from current customers.
The SH-2 is an aircraft that was originally manufactured for the
United States Navy. This is no longer done, however, the U.S.
Naval Reserve maintains twelve (12) SH-2G aircraft active in its
fleet. Management anticipates that at some point, these aircraft
will be retired from this type of service as well. In the
meantime, the corporation expects to continue providing logistics
and spare parts support for the aircraft. Earlier this year, the
corporation made an agreement with the appropriate federal agencies
to take a consignment of the U.S. Navy's inventory of SH-2 spare
parts for an initial period ending in September, 1999; the
corporation hopes to arrive at a longer term agreement prior to
that time. Under this arrangement, the corporation will provide
further support of U.S. Naval Reserve requirements and will have
the ability to utilize certain inventory for support of the
corporation's other SH-2 programs.
The corporation continues its conservative approach to production
of the K-MAX medium to heavy lift "aerial truck" helicopter.
Although the aircraft has a variety of potential applications
(including logging, oil and gas exploration, power line
construction, and fire fighting), management has anticipated that
it would take some time to develop markets for a new aircraft and
thus achieve sales and profitability. Sales and profitability have
also been affected by significant weakness in the U.S. and Canadian
commercial logging industries, the principal application for the
K-MAX to date. These circumstances appear to be affecting certain
current customers as well as potential sales of the K-MAX and
production of the aircraft has been adjusted accordingly. In this
environment, the corporation's commercial sales efforts are being
focused on further development of the aircraft's other
applications. The K-MAX also has a potential non-combat role for
the military in the task of vertical replenishment ("VERTREP"), a
function that has been performed by K-MAX for the U.S. Navy
- 8 -
<PAGE>
<PAGE>
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
Military Sealift Command in two separate demonstration projects
using charter/lease arrangements. The corporation is currently
bidding for a new VERTREP charter/lease contract, which would begin
in January 2000 and would involve two (2) aircraft for a period of
about three (3) years.
This segment also performs subcontract work for certain airframe
manufacturing programs and manufactures various niche market
products, including self-lubricating bearings for use principally
in aircraft. During the second quarter of 1999, the segment
continued to experience some softness in these businesses due to
conditions in the commercial aviation industry.
Industrial Distribution segment sales were down by 3.5% and 1.0%
for the second quarter and six month periods ended June 30, 1999,
respectively, compared to the same periods of 1998. Customers
from various North American industries (e.g., lumber, chemicals,
paper products) continue to be affected by global economic
difficulties which has in turn affected sales for this segment.
Increased competition and pricing pressures from customers have
also influenced sales during these periods. In this environment,
initiatives are being implemented to increase operational
efficiency and further focus marketing efforts.
Music Distribution segment sales were down by 12.0% and 6.8% for
the second quarter and six month periods ended June 30, 1999,
respectively, compared to the same periods of 1998. The segment is
experiencing ongoing weakness in international markets, with a
slowing of domestic sales also occurring during the second quarter.
The segments' total operating profit for the quarter ended June 30,
1999 was down 5.8% compared to the second quarter of 1998; total
operating profit for the segments for the six months ended June 30,
1999 was down 4.1% compared to the same period of 1998. Operating
profit for the Aerospace segment was up 17.7% for the second
quarter and 9.8% for the six month period from the comparable
periods of 1998, largely due to reversal of a reserve in the amount
of $2.5 million established in 1994 associated with Raymond
Engineering, a subsidiary of Kaman Corporation that was merged into
Kaman Aerospace Corporation. The segment's SH-2G helicopter
programs contributed to operating profit for the second quarter and
six months ended June 30, 1999; however, when the reversal of the
reserve is excluded, operating profit for the quarter and six month
period was slightly lower than it was for the same periods of 1998,
due in part to the offsetting effects of engineering and market
development costs associated with the K-MAX program. The Industrial
Distribution segment's operating profit was down 44.3% and 31.8%
for the second quarter and six months ended June 30, 1999,
- 9 -
<PAGE>
<PAGE>
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
respectively, compared to the same periods of 1998, due primarily
to the effects of the global economic difficulties upon the
company's customers and to price pressures associated with
increasing competition. The Music Distribution segment's operating
profit was down 51.5% and 5.4% for the second quarter and six
months ended June 30, 1999, respectively, compared to the same
periods of 1998, due to continued softness in international markets
with weakness in domestic markets having some impact in the second
quarter.
Net earnings for the second quarter of 1999 were 33 cents per
common share on a diluted basis compared to 31 cents for the second
quarter of 1998 on the same basis. A gain of approximately 6 cents
per common share was recognized for the quarter as a result of
reversing the Aerospace segment reserve described above.
For the six months ended June 30, 1999, interest income earned from
investment of surplus cash more than offset interest expense.
The consolidated effective income tax rate was 39.3% for the first
half of 1999 compared to 40.9% for the same period of 1998.
Management has been working with its board of directors and audit
committee since 1997 on the matter of year 2000 (Y2K) compliance.
KPMG LLP was retained as a consultant to assist in formalizing the
Y2K compliance program and to provide periodic assessment of the
corporation's progress. Each operating subsidiary designated a
program manager responsible for coordinating its activities and
developed a plan providing for inventory assessment of all Y2K
related matters (including hardware, software, networks, facilities
systems and embedded systems in product deliverables) as well as
the status of suppliers and service providers; conversion, upgrade,
or replacement of applications, as needed; and compliance testing
and problem solving, all to be accomplished within time tables
established under the plan. The project has generally proceeded on
schedule and as of June 30, 1999, the corporation has achieved
substantial overall Y2K compliance, including testing.
Contingency plans will continue to be developed as deemed
appropriate. The corporation and each operating subsidiary are
continuing to work with suppliers, customers and service providers
to gauge their Y2K readiness and monitor their progress toward
compliance. An oversight committee reporting to the executive vice
president and chief financial officer, has been established at
corporate headquarters to monitor the progress of each subsidiary's
compliance work. Senior management has provided progress reports
to the corporation's board of directors and audit committee on a
regular basis. The corporation separately identifies costs of Y2K
- 10 -
<PAGE>
<PAGE>
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
efforts as an internal management tool and based upon information
known to it at this time, management does not anticipate that the
costs of addressing Y2K issues will be material to the
corporation's financial position, results of operations, or cash
flows in future periods. Naturally, there can be no assurance that
third parties' systems, upon which the corporation and its
subsidiaries may rely, will become Y2K compliant in a timely
manner. The corporation cannot foresee the eventual outcome
associated with the arrival of the millennium and the impact that
potential computer failures within the corporation or among
significant customers, suppliers, or service providers might have
on the corporation's operations. It is conceivable that if such
failures occur, there could be an adverse impact upon the
corporation's operations.
Liquidity and Capital Resources
The corporation's cash flow from operations has generally been
sufficient to finance a significant portion of its working capital
and other capital requirements.
During the first half of 1999, operating activities generated cash,
primarily as a result of the receipt of additional payments on
accounts receivable in the Aerospace segment, offset to some degree
by an increase in inventory and by payments on accounts payable, a
reduction in the advance on the Aerospace segment SH-2G contracts,
and an increase in accounts receivable in the Industrial
Distribution segment. During the six month period, cash used in
investing activities was primarily for the acquisition of machinery
and computer equipment used in manufacturing and distribution.
Cash used by financing activities was primarily attributable to the
payment of dividends to common shareholders, and repurchase of
Class A common stock pursuant to a repurchase program for use in
connection with administration of the corporation's stock plans.
The corporation had approximately $91.7 million in surplus cash at
June 30, 1999, with an average of $73.8 million for the six month
period. The quarter end figure is somewhat more than expected
because certain higher than expected payments were made by
customers under the current SH-2G programs. These funds have been
invested in high quality, short term instruments.
At June 30, 1999, the corporation had approximately $28 million of
its 6% convertible subordinated debentures outstanding. The
debentures are convertible into shares of Class A common stock at
any time on or before March 15, 2012 at a conversion price of
- 11 -
<PAGE>
<PAGE>
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
$23.36 per share, generally at the option of the holder. Pursuant
to a sinking fund requirement that began March 15, 1997, the
corporation redeems approximately $1.7 million of the outstanding
principal of the debentures each year.
For borrowing purposes, the corporation maintains a revolving
credit agreement involving a group of domestic and foreign banks.
This facility provides a maximum unsecured line of credit of $250
million. The agreement has a term of five years ending in January
2001, and contains various covenants, including debt to
capitalization, consolidated net worth requirements, and
limitations on other loan indebtedness that the corporation may
incur.
Letters of credit are generally considered borrowings for purposes
of the agreement. The governments of Australia and New Zealand made
advance payments of $104.3 million in connection with their SH-2G
contracts in 1997 and those payments were fully secured by the
corporation through the issuance of irrevocable letters of credit.
As of June 30, 1999, the face amount of these letters of credit has
been reduced to about $ 53 million, in accordance with the terms of
the relevant contracts. Further reductions are anticipated as
certain contract milestones are achieved.
Under the revolving credit agreement, the corporation has the
ability to borrow funds on both a short-term and long-term basis.
As of June 30, 1999, the corporation had virtually no outstanding
borrowing. Average borrowings were $3.5 million and $4.1 million
for the six months ended June 30, 1999 and 1998, respectively.
Management believes that the corporation's cash flow from
operations and available unused bank lines of credit under its
revolving credit agreement will be sufficient to finance its
working capital and other capital requirements for the foreseeable
future.
Chief Executive Officer Search
The corporation announced on July 20, 1999 that Paul R. Kuhn has
been chosen by the Board of Directors as president and chief
executive officer of the corporation, effective August 2, 1999. He
will also become a director on that date. Mr. Kuhn's most recent
position was senior vice president of the aerospace engine business
for Coltec Industries, Inc. which recently merged with BF Goodrich.
Mr. Kaman will continue in his role as Chairman of the Board of
Directors.
- 12 -
<PAGE>
KAMAN CORPORATION AND SUBSIDIARIES
PART I - FINANCIAL INFORMATION, Continued
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations (Continued)
Forward-Looking Statements
This report contains forward-looking information relating to the
corporation's business and prospects, including the SH-2G and K-MAX
helicopter programs, specialty self-lubricating bearings and
couplings, the industrial and music distribution businesses, and
other matters that involve a number of uncertainties that may cause
actual results to differ materially from expectations. Those
uncertainties include, but are not limited to: 1) the successful
conclusion of contract negotiations with government authorities,
including foreign governments; 2) political developments in
countries where the corporation intends to do business; 3) standard
government contract provisions permitting renegotiation of terms
and termination for the convenience of the government; 4) economic
and competitive conditions in markets served by the corporation,
including industry consolidation in the United States and global
economic conditions; 5) the timing, degree and scope of market
acceptance for products such as a repetitive lift helicopter; 6)
U.S. industrial production levels; 7) achievement of Year 2000
compliance by the corporation, its customers, suppliers, and
service providers, including various federal, state, and foreign
governments and agencies thereof; 8) currency exchange rates,
taxes, laws and regulations, inflation rates, general business
conditions and other factors. Any forward-looking information
should be considered with these factors in mind.
- 13 -
<PAGE>
KAMAN CORPORATION AND SUBSIDIARIES
PART II - OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits to Form 10-Q:
(11) Earnings per common share computation
(27) Financial Data Schedule
(b) Reports on Form 8-K:
There were no reports on Form 8-K filed
during the quarter ended June 30, 1999. A
report on Form 8-K was filed on July 20, 1999
announcing that the Board of Directors has
chosen Mr. Paul R. Kuhn to succeed Mr. Charles
H. Kaman as president and CEO of Kaman
Corporation,effective August 2, 1999.
SIGNATURES
Pursuant to the requirements 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.
KAMAN CORPORATION
Registrant
Date: August 12, 1999 By Paul R. Kuhn
President and
Chief Executive Officer
(Duly Authorized Officer)
Date: August 12, 1999 By Robert M. Garneau
Executive Vice President and
Chief Financial Officer
- 14 -
<PAGE>
KAMAN CORPORATION AND SUBSIDIARIES
Index to Exhibits
Exhibit 11 Earnings Per Common Share
Computation Attached
Exhibit 27 Financial Data Schedule Attached
- 15 -
<PAGE>
<PAGE>
KAMAN CORPORATION AND SUBSIDIARIES
EXHIBIT 11 - EARNINGS PER COMMON SHARE COMPUTATION
(In thousands except per share amounts)
<TABLE>
For the Three Months For the Six Months
Ended June 30, Ended June 30,
-------------------- ------------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Basic:
Net earnings $ 8,031 $ 7,617 $ 15,304 $ 14,593
======== ======== ======== ========
Weighted average number
of common shares outstanding 23,540 23,722 23,596 23,125
======== ======== ======== ========
Net earnings per common
share - basic $ .34 $ .32 $ .65 $ .63
======== ======== ======== ========
Diluted:
Net earnings $ 8,031 $ 7,617 $ 15,304 $ 14,593
Elimination of interest expense
on 6% subordinated convertible
debentures(net after taxes) 257 265 524 542
-------- -------- -------- --------
Net earnings (as adjusted) $ 8,288 $ 7,882 $ 15,828 $ 15,135
======== ======== ======== ========
Weighted average number of common
shares outstanding 23,540 23,722 23,596 23,125
Weighted average shares issuable on
conversion of 6% subordinated
convertible debentures 1,208 1,279 1,236 1,307
Weighted average shares issuable on
conversion of Series 2
preferred stock -- -- -- 565
Weighted average shares issuable on
exercise of diluted stock options 126 298 136 289
-------- -------- -------- --------
Total 24,874 25,299 24,968 25,286
======== ======== ======== ========
Net earnings per common share
- diluted $ .33 $ .31 $ .63 $ .60
======== ======== ======== ========
</TABLE>
<PAGE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
The schedule contains summary financial information extracted from
the corporation's quarterly report to shareholders and is
qualified in its entirety by reference to such financial
statements.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1999
<PERIOD-START> JAN-01-1999
<PERIOD-END> JUN-30-1999
<CASH> 99,223
<SECURITIES> 0
<RECEIVABLES> 163,759
<ALLOWANCES> (4,135)
<INVENTORY> 213,946
<CURRENT-ASSETS> 501,255
<PP&E> 171,126
<DEPRECIATION> (107,519)
<TOTAL-ASSETS> 569,728
<CURRENT-LIABILITIES> 204,724
<BONDS> 26,546
0
0
<COMMON> 23,734
<OTHER-SE> 293,336
<TOTAL-LIABILITY-AND-EQUITY> 569,728
<SALES> 495,733
<TOTAL-REVENUES> 496,516
<CGS> 367,364
<TOTAL-COSTS> 471,314
<OTHER-EXPENSES> 506
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> (525)
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</TABLE>
