Item 6. Selected consolidated financial and operating data 8 The following selected consolidated financial and operating data has been derived from the audited Consolidated Financial Statements of the Company and should be read in conjunction with the Company’s Consolidated Financial Statements and the Notes thereto, and Item 7 — Management’s Discussion and Analysis of Financial Condition and Results of Operations, which are included in this Annual Report on Form 10-K. For the Year Ended March 31 (Dollars in Thousands, Except Per Share Data) 2003 2002 2001 2000 1999 Operating Results Continuing Operations (a) Net sales $1,171,631 $1,294,322 $1,431,838 $1,219,489 $1,128,452 Income (loss) before income taxes (b)(c)(d) (31,484) 4,944 (15,724) 11,753 26,008 Provision (benefit) for income taxes (11,739) 1,618 (3,713) 6,854 10,969 Income (loss) from continuing operations (b)(c)(d) $ (26,060) $ (2,911) $ (18,316) $ (1,305) $ 9,231 Income (Loss) from Discontinued Operations, net of taxes (a) $ 18,777 $ (4,136) $ 52,892 $ 41,450 $ 21,578 Cumulative Effect of Change in Accounting Principle, net of tax (e) (34,795) — — — — Net Income (Loss) (a)(b)(c)(d)(e) $ (42,078) $ (7,047) $ 34,576 $ 40,145 $ 30,809 Per Share Data Income (loss) from continuing operations — basic and diluted (a)(b)(c)(d) $ (0.96) $ (0.11) $ (0.68) $ (0.05) $ 0.35 Cash dividends per share 0.12 0.12 0.12 0.12 0.12 Book value per share $ 10.88 $ 12.56 $ 13.18 $ 12.20 $ 10.30 Price range of common shares High $ 15.50 $ 14.94 $ 16.13 $ 18.75 $ 13.19 Low $ 5.40 $ 7.40 $ 9.13 $ 6.50 $ 5.63 Financial Position Total assets $ 773,883 $ 916,937 $1,183,610 $1,113,835 $ 947,507 Long-term debt 130,995 179,000 390,999 320,205 313,240 Mandatorily redeemable convertible trust preferred securities 143,675 143,675 143,750 143,750 143,750 Shareholders’ equity $ 298,550 $ 340,697 $ 354,257 $ 324,065 $ 271,503 Weighted average shares outstanding Basic 27,292 27,040 26,793 26,409 26,351 Diluted 27,292 27,040 26,793 26,409 26,594 Other Comparative Data Total number of average employees (a) 1,126 1,253 1,314 1,325 1,337 Sales per employee (a) $ 1,041 $ 1,033 $ 1,090 $ 920 $ 844 Gross margin percent of sales (a) 12.7% 13.2% 12.4% 14.6% 16.3% Operating expense percent of sales (a)(b) 13.4% 12.0% 12.4% 12.8% 13.0% Net income (loss) percent of sales (a)(b)(c)(d)(e) (3.6)% (0.5)% 2.4% 3.3% 2.7% (a) The sale of the Company’s Industrial Electronics Division (‘‘IED’’) and the related discontinuation of the operations of Aprisa, Inc. in February 2003 represent a disposal of a ‘‘component of an entity’’ as defined in Statement of Financial Accounting Standard (‘‘SFAS’’) No. 144, ‘‘Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to be Disposed Of.’’ Accordingly, 1999 through 2002 have been restated to reflect the results of operations of IED and Aprisa, Inc. as discontinued operations, and to exclude employees that were related to these businesses. (See Note 2 in the Consolidated Financial Statements contained in Part IV hereof.) (b) In March 2003, the Company recorded a restructuring charge of $20.7 million ($13.0 million, after tax) for the impairment of facilities and other assets and for severance costs incurred in connection with downsizing the Company’s corporate structure. In Fiscal 2001, the Company recognized a non-cash write-down of $14.2 million ($10.8 million, after tax) for the abandonment of certain information technology system assets. (c) In March 2003, the Company recognized an impairment charge of $14.6 million ($9.2 million, after tax) on an available-for-sale investment. (d) In March 2003, the Company tendered for and repurchased certain of its 9.5% Senior Notes, which resulted in a pre-tax charge of $1.2 million ($0.7 million, after tax) associated with the premium paid and the write-off of related financing costs. (e) On April 1, 2002, Pioneer-Standard adopted SFAS No. 142, ‘‘Goodwill and Other Intangible Assets,’’ which requires that amortization of goodwill be replaced with period tests for goodwill impairment. The adoption of SFAS No. 142 resulted in a charge of $34.8 million, net of tax, which was recorded as a cumulative effect of a change in accounting principle. (See Note 4 in the Consolidated Financial Statements contained in Part IV hereof.)