04-HP-876_newMDA.qxd 12/15/04 3:04 PM Page 42 During 2002, the Company recor ded an estimated devaluation loss totaling $1.2 million in Argentina when that country experienced a dramatic economic collapse. As a r esult of the collapse, the  government stopped the outflo of dollars from the country and required that former dollar obligations be paid in Argentina pesos. During 2003, the Company was able to reduce its 2002 estimated devaluation loss by approximately $1.0 million by securing agreements with its customers that limited the portion of the accounts receivable that was paid in pesos with the balance of such accounts receivable paid in U.S. dollars. Operating profit increased by 29.7 per cent from 2002 to 2003 in the Company’s Real Estate division, primarily due to the sale of  approximately 15 acres of raw land fr om the Company’s South Park investment. Pre-tax profit from the sale of land was approximately $2.7 million. Depreciation expense incr eased in 2003 due to the acceleration of depreciation on the Company’s headquarters building, which was demolished in 2004. Overall combined occupancy and resulting  revenues generated from all the other real estate properties did not  materially fluctuate from 2002 to 2003. 43 Years Ended September 30, 2003 2002 % Change REAL ESTATE (in thousands) Revenues 9,842 $10,893 (9.6)% Direct operating expenses 3,347 1,789 87.1 Depreciation 2,253 2,535 (11.1) Operating profit  4,242 $ 6,569 (35.4) COMPARISON OF THE YEARS ENDED SEPTEMBER 30, 2003 AND 2002