FINANCIAL CONTENTS

Management's Discussion and Analysis

Consolidated Income Statements

Consolidated Balance Sheets

Consolidated Statements
of Cash Flows

Consolidated Statements of Stockholders' Equity

Notes to Consolidated Financial Statements

Report of Independent Auditors

Financial Summary

Note 5. Inventory

Inventory consists of the following (in thousands):

The preceding amounts include inventory valued under the last-in, first-out (ÒLIFOÓ) method totaling $9,141,000 and $5,365,000 at December 31, 2001 and 2000, respectively. In the aggregate, these costs are less than market value.

Note 6. Property, Plant and Equipment

Property, plant and equipment consists of the following (in thousands):

Depreciation expense totaled $8,468,000, $7,906,000 and $6,526,000 for the years ended December 31, 2001, 2000 and 1999, respectively. At December 31, 2001, $2,782,000 and $612,000 were included in accounts payable and accrued liabilities, respectively, for capital expenditures. At December 31, 2000, $5,372,000 and $2,093,000 were included in accounts payable and accrued liabilities, respectively, for capital expenditures.

Note 7. Intangible Assets

Intangible assets consists of the following (in thousands):

Amortization expense totaled $1,388,000, $1,445,000 and $1,056,000 for the years ended December 31, 2001, 2000 and 1999, respectively.

Note 8. Accrued Liabilities

Accrued liabilities consists of the following (in thousands):

Included in other accrued liabilities are employee payroll deductions, advance payments, accrued operating expenses, accrued warranty expenses, accrued interest and other items, none of which exceed 5% of total current liabilities.