Before we begin, we call your attention to the fact that we may make forward-looking statements during the course of this conference call. These forward-looking statements are not guarantees of our future performance and are subject to risks, uncertainties and other factors that could cause actual performance to differ materially from such statements. A description of these risks, uncertainties and other factors is contained in our news release of today’s date, our Form 10-Q for the quarter ended June 30, 2001, and in certain of our other public filings with the SEC.

Good morning. Thanks for joining us. This morning, we’re reporting results for the fourth quarter of fiscal 2001 and final results for fiscal year 2001. We’ll also discuss the trends that have become evident in the latter half of fiscal ’01 and lead us to the projection that we announced last week for fiscal ‘02.

Q4 - Total

The fourth quarter of fiscal 2001 was a good, solid quarter and it was very close to what we expected and what we had predicted.

It was a solid quarter in that sales of $185 million were up 11.4% and net earnings of $7.4 million, or 56 cents per share, were up 14.5% from the year previous.

In achieving the increase in net earnings, we saw some of the normal variations that occur in our cost structure. In the fourth quarter, our gross margin was up a little from a year ago. We spent 4.3% of sales on R&D in the quarter, which is an increase over the year previous, and a little bit higher than our average for the year. SG&A as a percent of sales was 16.4%, up a little from the year previous and our interest expense was down by almost $1 million. Our tax rate of 33.5% is down a little from last year. After our recent three-for-two stock split, we’re now working with 13.3 million shares.
Our EBITDA for the quarter of $27.1 million was up from $26.3 million a year ago. For the year, EBITDA was $106 million, or 15.0% of sales. This is up from last year’s EBITDA of $102 million. Bob Banta will discuss our cash flow and debt levels in more detail in a few minutes.

Aircraft – Q401

Aircraft sales for the quarter of $91.6 million were up 8% from last year. This is the highest aircraft sales level we’ve seen all year and it brought our aircraft sales for ’01 in at $340 million, $5 million higher than we had predicted.

Military aircraft sales of almost $45 million were up 16% and this increase was principally in the aftermarket. Military aftermarket was $22.6 million, up $4.5 million from the level the year previous. That’s an increase that we were hoping for in ’02 and it is the aftermarket sales level that we expect to maintain throughout fiscal ’02.