"The turbulence experienced in some sectors of the country's economy during the past year has fortunately had little effect on the strength of construction related product sales. Construction and retail hardware markets have both continued the positive direction that was experienced during the first half of the year. This is demonstrated in our final sales value of $ 18.8 million, an increase on the previous year of over 10%. It is distinctively satisfactory to point out, that the above trend was experienced in all departments throughout the company.
In achieving a record setting net income of $ 3.29 million this year I draw your attention to the net gain on the sale of land of $ 0.817 million and the transfer of $ 0.4 million from the general reserve, as both of these gains are included in the net income figure. That said, when the final operating income of $ 2.08 million is compared to last year's $ 1.69 million, this shows a very satisfactory increase of approximately 23%.
A further pleasing factor is that the balance sheet continues to move from strength to strength with improvements in the earnings per share increasing from $ 7.04 to $ 12.34 and net assets per share from $ 43.98 to $ 51.82. Similarly shareholders equity improved by a respectable 18%. This success is again reflected by the vastly improved cash position of $ 3.9 million.
Indeed it is after consideration of all of the above that your Directors have confidently decided to declare a record dividend of $ 4.50 per common share, payable 30th April 2002. Taken together with the earlier dividend of $2.00 this brings the annual total dividend to $ 6.50 per common share.
The temporary moratorium that was invoked earlier this year on expenditure on capital purchases was reconsidered and postponed by your Directors. This action was taken after giving consideration to the anticipated continuance of a strong construction industry market forecast for the coming year. This forecast is based both on work already in hand together with the company's ability to successfully retain their share of this blossoming market. This is particularly so when consideration is
given to the renewed marketing efforts aimed at the constant introduction of new product lines.
Given the strength of our cash position, significant capital has been allocated to both new and replacement plant and equipment. In particular provision has been allowed to erect a new Auto Stak storage unit in the LBM Yard at our Southampton Retail Outlet. The Manufacturing Division has significant provision for additions and improvements in plant and equipment in both the Concrete Block and Readymix Concrete Departments. As we become increasing reliant on efficient and effective IT equipment and solutions a provision has been allocated to improve our current technology.
Our overall success story to date is in keeping with the strategic aims that we have prescribed and the ever changing structure in the Company that is set to deliver to our customer's a quality service.
Once again I express my thanks on behalf of the shareholders to our employees, as without their industrious effort this successful year would not have been achieved. The increased opportunities created during the year in the continued training and education of our staff are most certainly reflected in the standards of customer satisfaction that have been attained.
Lastly but not least I would like to thank our loyal customers who in giving us their business are our most valuable and important asset."
John R. Berg
President