Revenue flow

Margins

Stage	MC	% of rev	KAI	% of rev	Gap · A − B
Revenue	$409M	100.00%	$313M	100.00%	MC ×1.31
Gross profit	$409M	100.00%	$137M	43.79%	MC +56.2pp
Operating income	$73M	17.79%	$51M	16.26%	MC +1.5pp
Pre-tax income	$75M	18.39%	$46M	14.71%	MC +3.7pp
Net income	$55M	13.47%	$33M	10.50%	MC +3.0pp

Stage	MC	KAI	Gap · A − B
Revenue	$409M100.00%	$313M100.00%	MC ×1.31
Gross profit	100.00%$409M	43.79%$137M	MC +56.2pp
Operating income	17.79%$73M	16.26%$51M	MC +1.5pp
Pre-tax income	18.39%$75M	14.71%$46M	MC +3.7pp
Net income