Sales are up by $66,000 or 2.4% over the prior year. Net income is up by $36,000 or 9.3% through a combination of increased sales and gross margin, offset by higher operating expense.
Cash flow, for the year, was up by $137,000 or 11.7%, due to higher profit and reduced accounts receivable, inventories and prepaid expenses, in addition to $20,000 of accelerated computer depreciation, taken in the current year.
The horrific events in the U.S. on September 11, 2001 have impacted, to some degree, our sales in the second six months of the year. This factor, coupled with the impact of the lower number of regular tourists and the shut down of tourist accommodations continued to affect our sales volumes.
Our General Manager, John Carey retired on March 31st, 2002 and Richard Moulder replaced him. Mr. Carey's retirement was extended by one year so that he could complete his two year Presidency of Coatings Research Group Inc, an international paint research cooperative, of which the company is a member. The company wishes to record their thanks to Mr Carey for his contributions over the past fourteen years and wish him a long, happy and healthy retirement.
Mr. Moulder was involved in the start up and operation of his own successful local wholesale beverage company in the mid 1980's, prior to being bought out by a local wholesaler and more recently has held management positions of increasing responsibility in the local and global communications industry.