we account for business acquisitions using the purchase method of accounting . the cost of the acquired company is allocated to identifiable tangible and intangible assets based on estimated fair values , with the excess allocated to goodwill . certain assumptions and estimates are employed in determining the fair value of assets acquired ( including goodwill and other intangible assets ) and of liabilities assumed . we review the carrying value of goodwill on an annual basis , or more frequently if events or changes in circumstances indicate that such carrying values may not be recoverable . the review for impairment requires the use of forecasts , estimates , and assumptions as to the future performance of our operations . actual results could differ from forecasts resulting in a revision of our assumptions and , if required , could result in recognizing an impairment loss in a future period . in determining the fair value of each reporting unit , the company estimates fair value by applying a range of multiples to a weighted average estimate of earnings before interest , taxes , depreciation and amortization ( `` ebitda `` ) . in the event the carrying value exceeds the estimated fair value , the company determines the implied value of the goodwill to determine any potential goodwill impairment . if such impairment exists , the excess carrying value is written off as an impairment expense . we evaluate the recoverability of our long-lived assets that are held-for-use whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . the recoverability of long-lived assets is determined based on a comparison of the estimated future undiscounted cash flows related to such assets to their carrying values . if the carrying value of such assets exceeds the future undiscounted cash flows , the carrying value of the related assets would be reduced to their estimated fair value . estimating future undiscounted cash flows requires the use of forecasts , estimates , and assumptions as to the future performance of our operations . any changes in these estimates or assumptions could result in an impairment charge in a future period . assets to be disposed of by sale are reflected at the lower of their carrying amount or fair value less any costs to sell the asset . recent accounting standards in november 2004 , the fasb issued sfas no . 151 , `` inventory costs-an amendment of arb no . 43 , chapter 4 `` , to clarify the accounting for abnormal inventory costs and the allocation of fixed production overhead costs . sfas no . 151 will be effective for inventory costs incurred beginning in fiscal year 2006. the company has not yet determined the impact of applying the provisions of sfas no . 151. general the following is an analysis of our financial condition and results of operations . you should read this analysis in conjunction with our consolidated financial statements and accompanying notes to the consolidated financial statements included on pages 32 through 57 of this report . results of operations for fiscal 2004 compared to 2003 fiscal 2004 demonstrated a significant recovery from the unfavorable market and competitive environment that existed through the majority of 2002 and 2003. an improving economy fostered a strong residential construction demand , and for the first year since 2000 , non-residential construction activity showed positive growth . infrastructure spending also started to trend up . these factors aided the volume growth in our concrete construction products segment . fundamental changes in the steel rod industry also helped reverse the factors that had so distorted competitive conditions within our respective industry sectors in 2002 and 2003. steel rod producers incurred a significant increase in their cost input factors in 2004. when these cost factors were combined with a rationalization of domestic steel rod capacity , meaningful steel price increases resulted , aggregating anywhere from 80 % to 100 % during the year . supply and demand conditions were further influenced by : the establishment of dumping and countervailing duties against a number of countries formerly quite active in exporting to the u.s. strong demand for steel in china and other parts of the world increases in ocean freight rates , and declines in the relative value of the u.s. dollar as a result , steel rod availability was tight through the first eight months of fiscal 2004 , and companies eliminated the excess stocks of inventory that had built up in 2003. these factors allowed us , as well as the other competitors in the various industrial sectors within which we operate , to implement price increases that offset the steel cost price increases and improved profit margins . importantly , relative stability in the competitive environment also occurred , supported by the improving economy , the outlook for continued strong demand going forward , and the absence of the many significant competitor-specific issues that distorted business strategies in 2002 and 2003. although our overall improvement in profitability in 2004 was due to successful pricing strategies and volume increases in the concrete construction products segment , 2004 also benefited from the continuation of our cost reduction activities . further cost reductions are expected for the future , through additional investments in equipment and through the application of more rigorous management processes . fiscal 2004 was still burdened by some restructuring related expenses amounting to $ 2.3 million that were incurred as part of the overall process to lower the company 's cost structure . story_separator_special_tag the 2002 charges included restructuring costs of $ 3.2 million of which $ 2.7 million were attributable to the concrete construction products segment with the remaining attributable to the fence segment . fixed asset impairments in 2002 of $ 3.8 million ( $ 3.0 million related to the concrete construction products segment ) resulted from plant closures and realignments , where estimated future undiscounted cash flows related to certain fixed assets indicated impairment had occurred . other expense in 2003 included a $ 1.4 million settlement charge related to the baltimore , maryland union pension plan and $ 1.2 million related to the 2003 closure of our manufacturing facility in whittier , california that was partially offset by a $ 0.8 million gain on the sale of that facility . in addition , there were costs of $ 1.8 million in 2003 associated with the ongoing restructuring initiatives begun in 2002. net loss replace_table_token_11_th interest expense . interest expense totaled $ 28.4 million in 2003 , which represents an increase of 10.8 % as compared to 2002. the 2003 increase is primarily due to additional borrowings of $ 24 million to fund the srp acquisition in december 2002. income tax benefit . the effective tax benefit rate of 38.2 % in 2003 is greater than the 36.3 % rate in 2002 due primarily to the relatively fixed dollar impact of expenses not deductible for income tax purposes . liquidity and capital resources story_separator_special_tag these obligations are expected to have on our liquidity and cash flow in future periods : replace_table_token_12_th purchase obligations include agreements to purchase goods or services that are enforceable and legally binding and that specify all significant terms and excludes agreements that are cancelable at anytime without penalty . reflects future interest payments on our $ 200 million senior subordinated notes through scheduled maturity dates . outlook looking to 2005 and beyond , our ability to not only sustain but improve 2004 's profitability can not be dependent on the ability to obtain additional , significant price increases of the magnitude obtained in 2004. in 2005 , we do not expect major changes in the cost of steel , our primary raw material . we believe there continues to be forces in the cost components of finished steel that may cause some further increases , but not near the magnitude of the increases that occurred in 2004. our plans for 2005 are focused on volume increases and continued cost efficiencies . forecasts for improvements in non-residential construction and general economic well-being should boost demand for our products . new products have been , and are continuing to be , identified as a means to better leverage our fixed cost capacity . we will endeavor to meet market demands in geographic regions for which we , in the past , did not adequately cover , which is reflected in the fact that we have already opened in 2005 two new distribution centers in our concrete accessories business and one in our fence operation . we are continuing to lower the cost of our products , whether manufactured , or purchased from domestic or from foreign sources . in 2005 , the company plans to invest approximately $ 22 million in property , plant and equipment . we estimate that about $ 8 million of this investment will be capital expenditures financed under the revolving credit facility with the balance put in service under capital lease obligations . our revolving credit facility currently limits annual capital expenditures financed under the revolving credit facility to $ 20 million and total capital lease obligations to $ 17 million . the anticipated level of capital lease financing will require an increase to the current $ 17 million limitation in our revolving credit facility . while we expect to be able to obtain the increase in allowable capital lease financing under our revolving credit facility , there is no guarantee that such an increase will be granted at all , or on terms that are acceptable to the company . delays or cancellations of planned projects or changes in the economic outlook and the status of the company 's liquidity could increase or decrease capital spending from the amounts now anticipated . we believe our liquidity , capital resources and cash flows from operations will be sufficient , in the absence of additional acquisitions , to fund our planned capital expenditures and our working capital and debt service requirements . we have pursued and intend to continue to pursue a strategy of business acquisitions that will broaden our distribution network , complement or extend our existing product lines or otherwise increase our market presence . it is possible , depending on our future operating cash flows and the size of potential acquisitions , that we will seek additional sources of financing , subject to limitations set forth in our senior subordinated note indenture and revolving credit facility . significant acquisition opportunities will require additional equity financing or capital infusions . we may also pay dividends to mmhc from time to time to pay operating expense , interest and principal on mmhc 's indebtedness , and dividends on mmhc 's preferred stock and for other purposes . such payments of dividends are limited by state of delaware corporate law and financial tests included in both our senior subordinated note indenture and revolving credit facility loan agreement . on october 22 , 2004 , president bush signed into law the `` american jobs creation act of 2004 . `` the legislation creates a nine percent deduction for income derived from qualified domestic production activities that will be phased in over a period of years beginning in 2005 ( three percent in 2005 ) . we are currently evaluating the potential beneficial effect this legislation will have on our 2005 income taxes . seasonality . our products are used in the commercial , infrastructure , and residential construction industries . these industries are both cyclical and

cash flow operating activities . despite a $ 28.0 million increase in net income in 2004 as compared to 2003 , operations utilized $ 15.8 million of cash in 2004 as compared to $ 16.9 million in 2003. the increased investment during 2004 in working capital as discussed below was the primary reason for this change . investing activities . capital expenditures utilized $ 9.0 million of cash in 2004 compared to $ 6.2 million in 2003. the capital expenditures are to upgrade certain operations , add production capacity , and lower costs . in 2004 , $ 4.0 million has been advanced as deposits on machinery that will be refunded when capital lease financing closes . in 2003 , $ 5.7 million of deposits made in 2002 on machinery was refunded when the related capital lease financing was closed . we also invested $ 1.6 million in 2004 for new business systems that are scheduled for implementation by mid 2006. the company acquired structural reinforcement products , inc. on december 30 , 2002 using approximately $ 24.0 million of cash funded by the revolving credit facility . financing activities provided cash of $ 27.3 million in fiscal 2004 as compared to $ 37.8 million in 2003. the major borrowing in 2004 was primarily to fund investment in working capital and new machinery . the borrowing in 2003 was primarily related to the purchase of srp . no cash dividends were paid to mmhc in 2004 or 2003. our revolving credit facility and senior subordinated note indenture require us to meet certain tests before dividends can be paid to mmhc . working capital working capital at the end of 2004 was $ 173.3 million , a $ 55.6 million increase as compared to the $ 117.7 million at the end of 2003. the increase is primarily attributable to a $ 70.0 million increase in inventories offset by a $ 14.6 million increase in accrued liabilities . the increase in inventory is due both to price and quantity .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```cash flow operating activities . despite a $ 28.0 million increase in net income in 2004 as compared to 2003 , operations utilized $ 15.8 million of cash in 2004 as compared to $ 16.9 million in 2003. the increased investment during 2004 in working capital as discussed below was the primary reason for this change . investing activities . capital expenditures utilized $ 9.0 million of cash in 2004 compared to $ 6.2 million in 2003. the capital expenditures are to upgrade certain operations , add production capacity , and lower costs . in 2004 , $ 4.0 million has been advanced as deposits on machinery that will be refunded when capital lease financing closes . in 2003 , $ 5.7 million of deposits made in 2002 on machinery was refunded when the related capital lease financing was closed . we also invested $ 1.6 million in 2004 for new business systems that are scheduled for implementation by mid 2006. the company acquired structural reinforcement products , inc. on december 30 , 2002 using approximately $ 24.0 million of cash funded by the revolving credit facility . financing activities provided cash of $ 27.3 million in fiscal 2004 as compared to $ 37.8 million in 2003. the major borrowing in 2004 was primarily to fund investment in working capital and new machinery . the borrowing in 2003 was primarily related to the purchase of srp . no cash dividends were paid to mmhc in 2004 or 2003. our revolving credit facility and senior subordinated note indenture require us to meet certain tests before dividends can be paid to mmhc . working capital working capital at the end of 2004 was $ 173.3 million , a $ 55.6 million increase as compared to the $ 117.7 million at the end of 2003. the increase is primarily attributable to a $ 70.0 million increase in inventories offset by a $ 14.6 million increase in accrued liabilities . the increase in inventory is due both to price and quantity .
```    
 Suspicious Activity Report : we account for business acquisitions using the purchase method of accounting . the cost of the acquired company is allocated to identifiable tangible and intangible assets based on estimated fair values , with the excess allocated to goodwill . certain assumptions and estimates are employed in determining the fair value of assets acquired ( including goodwill and other intangible assets ) and of liabilities assumed . we review the carrying value of goodwill on an annual basis , or more frequently if events or changes in circumstances indicate that such carrying values may not be recoverable . the review for impairment requires the use of forecasts , estimates , and assumptions as to the future performance of our operations . actual results could differ from forecasts resulting in a revision of our assumptions and , if required , could result in recognizing an impairment loss in a future period . in determining the fair value of each reporting unit , the company estimates fair value by applying a range of multiples to a weighted average estimate of earnings before interest , taxes , depreciation and amortization ( `` ebitda `` ) . in the event the carrying value exceeds the estimated fair value , the company determines the implied value of the goodwill to determine any potential goodwill impairment . if such impairment exists , the excess carrying value is written off as an impairment expense . we evaluate the recoverability of our long-lived assets that are held-for-use whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable . the recoverability of long-lived assets is determined based on a comparison of the estimated future undiscounted cash flows related to such assets to their carrying values . if the carrying value of such assets exceeds the future undiscounted cash flows , the carrying value of the related assets would be reduced to their estimated fair value . estimating future undiscounted cash flows requires the use of forecasts , estimates , and assumptions as to the future performance of our operations . any changes in these estimates or assumptions could result in an impairment charge in a future period . assets to be disposed of by sale are reflected at the lower of their carrying amount or fair value less any costs to sell the asset . recent accounting standards in november 2004 , the fasb issued sfas no . 151 , `` inventory costs-an amendment of arb no . 43 , chapter 4 `` , to clarify the accounting for abnormal inventory costs and the allocation of fixed production overhead costs . sfas no . 151 will be effective for inventory costs incurred beginning in fiscal year 2006. the company has not yet determined the impact of applying the provisions of sfas no . 151. general the following is an analysis of our financial condition and results of operations . you should read this analysis in conjunction with our consolidated financial statements and accompanying notes to the consolidated financial statements included on pages 32 through 57 of this report . results of operations for fiscal 2004 compared to 2003 fiscal 2004 demonstrated a significant recovery from the unfavorable market and competitive environment that existed through the majority of 2002 and 2003. an improving economy fostered a strong residential construction demand , and for the first year since 2000 , non-residential construction activity showed positive growth . infrastructure spending also started to trend up . these factors aided the volume growth in our concrete construction products segment . fundamental changes in the steel rod industry also helped reverse the factors that had so distorted competitive conditions within our respective industry sectors in 2002 and 2003. steel rod producers incurred a significant increase in their cost input factors in 2004. when these cost factors were combined with a rationalization of domestic steel rod capacity , meaningful steel price increases resulted , aggregating anywhere from 80 % to 100 % during the year . supply and demand conditions were further influenced by : the establishment of dumping and countervailing duties against a number of countries formerly quite active in exporting to the u.s. strong demand for steel in china and other parts of the world increases in ocean freight rates , and declines in the relative value of the u.s. dollar as a result , steel rod availability was tight through the first eight months of fiscal 2004 , and companies eliminated the excess stocks of inventory that had built up in 2003. these factors allowed us , as well as the other competitors in the various industrial sectors within which we operate , to implement price increases that offset the steel cost price increases and improved profit margins . importantly , relative stability in the competitive environment also occurred , supported by the improving economy , the outlook for continued strong demand going forward , and the absence of the many significant competitor-specific issues that distorted business strategies in 2002 and 2003. although our overall improvement in profitability in 2004 was due to successful pricing strategies and volume increases in the concrete construction products segment , 2004 also benefited from the continuation of our cost reduction activities . further cost reductions are expected for the future , through additional investments in equipment and through the application of more rigorous management processes . fiscal 2004 was still burdened by some restructuring related expenses amounting to $ 2.3 million that were incurred as part of the overall process to lower the company 's cost structure . story_separator_special_tag the 2002 charges included restructuring costs of $ 3.2 million of which $ 2.7 million were attributable to the concrete construction products segment with the remaining attributable to the fence segment . fixed asset impairments in 2002 of $ 3.8 million ( $ 3.0 million related to the concrete construction products segment ) resulted from plant closures and realignments , where estimated future undiscounted cash flows related to certain fixed assets indicated impairment had occurred . other expense in 2003 included a $ 1.4 million settlement charge related to the baltimore , maryland union pension plan and $ 1.2 million related to the 2003 closure of our manufacturing facility in whittier , california that was partially offset by a $ 0.8 million gain on the sale of that facility . in addition , there were costs of $ 1.8 million in 2003 associated with the ongoing restructuring initiatives begun in 2002. net loss replace_table_token_11_th interest expense . interest expense totaled $ 28.4 million in 2003 , which represents an increase of 10.8 % as compared to 2002. the 2003 increase is primarily due to additional borrowings of $ 24 million to fund the srp acquisition in december 2002. income tax benefit . the effective tax benefit rate of 38.2 % in 2003 is greater than the 36.3 % rate in 2002 due primarily to the relatively fixed dollar impact of expenses not deductible for income tax purposes . liquidity and capital resources story_separator_special_tag these obligations are expected to have on our liquidity and cash flow in future periods : replace_table_token_12_th purchase obligations include agreements to purchase goods or services that are enforceable and legally binding and that specify all significant terms and excludes agreements that are cancelable at anytime without penalty . reflects future interest payments on our $ 200 million senior subordinated notes through scheduled maturity dates . outlook looking to 2005 and beyond , our ability to not only sustain but improve 2004 's profitability can not be dependent on the ability to obtain additional , significant price increases of the magnitude obtained in 2004. in 2005 , we do not expect major changes in the cost of steel , our primary raw material . we believe there continues to be forces in the cost components of finished steel that may cause some further increases , but not near the magnitude of the increases that occurred in 2004. our plans for 2005 are focused on volume increases and continued cost efficiencies . forecasts for improvements in non-residential construction and general economic well-being should boost demand for our products . new products have been , and are continuing to be , identified as a means to better leverage our fixed cost capacity . we will endeavor to meet market demands in geographic regions for which we , in the past , did not adequately cover , which is reflected in the fact that we have already opened in 2005 two new distribution centers in our concrete accessories business and one in our fence operation . we are continuing to lower the cost of our products , whether manufactured , or purchased from domestic or from foreign sources . in 2005 , the company plans to invest approximately $ 22 million in property , plant and equipment . we estimate that about $ 8 million of this investment will be capital expenditures financed under the revolving credit facility with the balance put in service under capital lease obligations . our revolving credit facility currently limits annual capital expenditures financed under the revolving credit facility to $ 20 million and total capital lease obligations to $ 17 million . the anticipated level of capital lease financing will require an increase to the current $ 17 million limitation in our revolving credit facility . while we expect to be able to obtain the increase in allowable capital lease financing under our revolving credit facility , there is no guarantee that such an increase will be granted at all , or on terms that are acceptable to the company . delays or cancellations of planned projects or changes in the economic outlook and the status of the company 's liquidity could increase or decrease capital spending from the amounts now anticipated . we believe our liquidity , capital resources and cash flows from operations will be sufficient , in the absence of additional acquisitions , to fund our planned capital expenditures and our working capital and debt service requirements . we have pursued and intend to continue to pursue a strategy of business acquisitions that will broaden our distribution network , complement or extend our existing product lines or otherwise increase our market presence . it is possible , depending on our future operating cash flows and the size of potential acquisitions , that we will seek additional sources of financing , subject to limitations set forth in our senior subordinated note indenture and revolving credit facility . significant acquisition opportunities will require additional equity financing or capital infusions . we may also pay dividends to mmhc from time to time to pay operating expense , interest and principal on mmhc 's indebtedness , and dividends on mmhc 's preferred stock and for other purposes . such payments of dividends are limited by state of delaware corporate law and financial tests included in both our senior subordinated note indenture and revolving credit facility loan agreement . on october 22 , 2004 , president bush signed into law the `` american jobs creation act of 2004 . `` the legislation creates a nine percent deduction for income derived from qualified domestic production activities that will be phased in over a period of years beginning in 2005 ( three percent in 2005 ) . we are currently evaluating the potential beneficial effect this legislation will have on our 2005 income taxes . seasonality . our products are used in the commercial , infrastructure , and residential construction industries . these industries are both cyclical and

