A M P H E N O L C O R P O R A T I O N 2 0 0 4 A N N U A L R E P O R T  Results of Operations  The following table sets forth the components of net income as a percentage of net sales for the periods indicated.  Year Ended December 31,  2004  2003  2002  Net sales  100.0% 100.0% 100.0% Cost of sales, excluding depreciation and amortization  65.3  66.2  65.9  Depreciation and amortization expense  2.5  3.0  3.3  Selling, general and administrative expense  14.1  14.3  14.4  Operating income  18.1 16.5 16.4 Interest expense  (1.5) (2.4) (4.3) Other expenses, net  (.4) (.6) (.5) Expense for early extinguishment of debt  -  (.8)  -  Income before income taxes  16.2  12.7  11.6  Provision for income taxes  (5.5)  (4.3)  (4.0)  Net income  10.7%  8.4% 7.6%  27