Consolidated Statements of Income (In thousands, except per share amounts) Year Ended December 31, 2003 2002 2001 Net sales $353,116 $325,431 $254,770 Cost of sales 266,435 246,844 194,309 Gross profit 86,681 78,587 60,461 Selling, general and administrative expenses 52,404 49,374 40,116 Operating profit 34,277 29,213 20,345 Interest expense, net 3,034 3,566 4,151 Income from continuing operations before income taxes  and cumulative effect of change in accounting principle 31,243 25,647 16,194 Provision for income taxes 11,868 9,883 6,364 Income from continuing operations before cumulative effect  of change in accounting principle 19,375 15,764 9,830 Discontinued operations (net of taxes) 48 (200) (896) Income before cumulative effect of change in accounting principle 19,423 15,564 8,934 Cumulative effect of change in accounting principle for goodwill  (net of taxes of $2,743) (30,162) Net income (loss) $ 19,423 $ (14,598) $ 8,934 Income (loss) per common share: Income from continuing operations before cumulative  effect of change in accounting principle: Basic $ 1.92 $ 1.61 $ 1.02 Diluted $ 1.88 $ 1.57 $ 1.02 Discontinued operations, net of taxes: Basic $ (.02) $ (.10) Diluted $ (.02) $ (.10) Cumulative effect of change in accounting principle  for goodwill, net of taxes: Basic $ (3.08) Diluted $ (3.01) Net income (loss): Basic $ 1.92 $ (1.49) $ .92 Diluted $ 1.88 $ (1.46) $ .92 The accompanying notes are an integral part of these consolidated financial statements. DREW INDUSTRIES INCORPORATED 2003 ANNUAL REPORT 19