Rayovac 2002 Annual Report Download - page 62

Download and view the complete annual report

Please find page 62 of the 2002 Rayovac annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 67

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67

48
49
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Rayovac Corporation and Subsidiaries
(In thousands, except per share amounts)
2002 Restructuring Summary
Termination Other
Benefits Costs Total
Expense accrued $ 1,200 $ 1,400 $ 2,600
Change in estimate — (400) (400)
Expense as incurred — 200 200
Cash expenditures (1,100) (200) (1,300)
Non-cash charges — (1,000) (1,000)
Balance September 30, 2002 $ 100 $ — $ 100
(16) Acquisitions and Divestitures
In 2000, the Company entered into an asset purchase agreement and a license agreement with a Hong Kong company to sell certain inventory and for
the exclusive right to use the Rayovac trade name for the manufacture, sale and distribution of the Company’s camcorder battery product line. In
exchange for the license, the Company received a $6,000 promissory note, payable over five years, and will receive a royalty on future sales of camcorder
batteries. The Company will receive a minimum royalty of $100 over the balance of the license arrangement and will receive a variable royalty on sales
of camcorder batteries. The Company has no substantive future obligation relative to this agreement. As a result of this transaction, the Company
recognized a pretax gain on the sale of the trade name licensing rights of $1,997, net of write-off of related tangible and intangible assets.
In 2002, the Company entered into similar agreements with the same Hong Kong company for the cordless product line and licensing agreements on
other product lines not currently sold by the Company. The Company received promissory notes in the amount of $800 payable over terms of up to five
years. The Company will receive variable royalties on sales of product lines licensed. As a result of these transactions, the Company recognized a pretax
gain of $701.
(17) Quarterly Results (unaudited)
Quarter Ended
December 30, March 31, June 30, September 30,
2001 2002 2002 2002
Net sales $161,883 $121,153 $135,412 $154,288
Gross profit 62,732 49,934 54,401 70,312
Net income 402 5,380 10,314 13,141
Basic net income per common share 0.01 0.17 0.32 0.41
Diluted net income per common share 0.01 0.17 0.32 0.41
Quarter Ended
December 31, April 1, July 1, September 30,
2000 2001 2001 2001
Net sales $164,307 $134,679 $146,969 $170,217
Gross profit 51,991 55,942 59,104 65,859
(Loss) income before extraordinary item (1,766) 4,125 8,072 6,430
Net (loss) income (1,766) 4,125 2,722 6,453
Basic net (loss) income per common share (0.06) 0.15 0.10 0.20
Diluted net (loss) income per common share (0.06) 0.14 0.09 0.20