H O N I N D U S T R I E S I n c . a n d S U B S I D I A R I E S S E L E C T E D F I N A N C I A L D A T A E L E V E N - Y E A R S U M M A R Y 2003 2002 (a) 2001  2000 PER COMMON SHARE DATA (BASIC AND DILUTIVE) Income before Cumulative Effect of Accounting Changes - basic  $  1.69 $  1.55  $  1.26 $  1.77 Cumulative Effect of Accounting Changes - basic  – –  –  – Net Income – basic  1.69  1.55  1.26  1.77 Net Income – diluted  1.68 1.55  1.26  1.77 Cash Dividends  .52 .50  .48  .44 Book Value – basic  12.19 11.08  10.10  9.59 Net Working Capital – basic  3.71 1.82  1.52  1.09 OPERATING RESULTS (THOUSANDS OF DOLLARS) Net Sales $ 1,755,728 $ 1,692,622  $ 1,792,438  $ 2,046,286 Cost of Products Sold  1,116,513  1,092,743  1,181,140  1,380,404 Gross Profit  639,215 599,879  611,298  665,882 Interest Expense  2,970 4,714  8,548  14,015 Income Before Income Taxes  150,931 140,554  116,261  165,964 Income Before Income Taxes as a % of Net Sales  8.60% 8.30%  6.49%  8.11% Federal and State Income Taxes  $  52,826 $  49,194  $  41,854  $  59,747 Effective Tax Rate  35.0% 35.0%  36.0%  36.0% Income before Cumulative Effect of Accounting Changes  $  98,105 $  91,360  $  74,407  $  106,217 Net Income  98,105 91,360  74,407  106,217 Net Income as a % of Net Sales  5.59% 5.40%  4.15%  5.19% Cash Dividends and Share Purchase Rights Redeemed  $  30,299 $  29,386  $  28,373  $  26,455 Addition to (Reduction of) Retained Earnings  54,001 55,176  36,759  79,762 Net Income Applicable to Common Stock  98,105 91,360  74,407  106,217 % Return on Average Shareholders’ Equity  14.46% 14.74%  12.76%  19.77% Depreciation and Amortization  $  72,772 $  68,755  $  81,385  $  79,046 DISTRIBUTION OF NET INCOME % Paid to Shareholders  30.88% 32.16%  38.13%  24.91% % Reinvested in Business  69.12% 67.84%  61.87%  75.09% FINANCIAL POSITION (THOUSANDS OF DOLLARS) Current Assets  $ 462,122 $  405,054  $  319,657  $  330,441 Current Liabilities  245,816 298,680  230,443  264,868 Working Capital  216,306 106,374  89,214  65,273 Net Property, Plant, and Equipment  312,368 353,270  404,971  454,312 Total Assets  1,021,826  1,020,552  961,891  1,022,470 % Return on Beginning Assets Employed  14.69% 14.83%  12.04%  19.63% Long-Term Debt and Capital Lease Obligations  $  4,126 $  9,837  $  80,830  $  128,285 Shareholders’ Equity  709,889 646,893  592,680  573,342 Retained Earnings  641,732 587,731  532,555  495,796 Current Ratio  1.88 1.36  1.39  1.25 CURRENT SHARE DATA Number of Shares Outstanding at Year-End  58,238,519 58,373,607  58,672,933  59,796,891 Weighted-Average Shares Outstanding During Year – basic  58,178,739 58,789,851  59,087,963  60,140,302 Number of Shareholders of Record at Year-End  6,416 6,777  6,694  6,563 OTHER OPERATIONAL DATA Capital Expenditures (Thousands of Dollars)  $  34,842 $  25,885  $  36,851  $ 59,840 Members (Employees) at Year-End  8,926 8,828  9,029 (b) 11,543 (b) 56 (a) Per SFAS No. 142, “Goodwill and Other Intangible Assets,” the Company has ceased recording of goodwill and indefinite-lived Intangible amortization. (b) Includes acquisitions completed during year.