-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, gIgEeIBISFMQaPT60EzBPU06wiWkWE/AeziPHVb/UMthaY90IS/3vCNGNXxwmlLP rJ/MY06JqCM462HMzU6Tlw== 0000051103-94-000005.txt : 19940511 0000051103-94-000005.hdr.sgml : 19940511 ACCESSION NUMBER: 0000051103-94-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940331 FILED AS OF DATE: 19940510 FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERNATIONAL ALUMINUM CORP CENTRAL INDEX KEY: 0000051103 STANDARD INDUSTRIAL CLASSIFICATION: 3442 IRS NUMBER: 952385235 STATE OF INCORPORATION: CA FISCAL YEAR END: 0630 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-07256 FILM NUMBER: 94527012 BUSINESS ADDRESS: STREET 1: 767 MONTEREY PASS RD CITY: MONTEREY PARK STATE: CA ZIP: 91754 BUSINESS PHONE: 2132641670 10-Q 1 FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q QUARTERLY REPORT PURSUANT TO SECTION 13 OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended March 31, 1994 Commission File Number 1-7256 INTERNATIONAL ALUMINUM CORPORATION (Exact name of registrant as specified in its charter) California 95-2385235 (State of incorporation) (I.R.S. Employer No.) 767 Monterey Pass Road, Monterey Park, California 91754 (213) 264-1670 (Address of principal executive offices) (Telephone No.) None Former name, former address and former fiscal year, if changed since last report Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes X No Indicate the number of shares outstanding of each of the classes of common stock . Class Outstanding at May 2, 1994 Common Stock $1.00 Par Value 4,230,615 Page 1 of 10 Pages INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES INDEX Page Nos. PART I Financial Information Consolidated Balance Sheets - March 31, 1994 and June 30, 1993 3 Consolidated Statements of Income - three and nine month periods ended March 31, 1994 and 1993 5 Consolidated Statements of Cash Flows - nine months ended March 31, 1994 and 1993 6 Notes to Consolidated Financial Statements 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Signatures 10 - 2 - PART I INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
Unaudited Audited Assets March 31, 1994 June 30, 1993 Current assets: Cash $ 5,730,000 $ 4,847,000 Short-term investments 10,926,000 14,407,000 Accounts receivable, net 31,659,000 29,620,000 Unbilled receivables 1,137,000 1,441,000 Inventories: Raw materials 19,922,000 18,424,000 Work-in-process 2,622,000 3,374,000 Finished goods 5,121,000 4,144,000 Prepaid expenses 2,082,000 1,529,000 Future income tax benefits 909,000 827,000 Total current assets 80,108,000 78,613,000 ____________ ____________ Property, plant and equipment, at cost 86,341,000 84,569,000 Less - Accumulated depreciation (46,833,000) (44,528,000) 39,508,000 40,041,000 ____________ ____________ Other assets: Costs in excess of net assets of purchased businesses 5,005,000 5,105,000 Other 1,158,000 179,000 6,163,000 5,284,000 ____________ ____________ $125,779,000 $123,938,000 ____________ ____________ ____________ ____________ See accompanying notes to consolidated financial statements.
- 3 - INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
Unaudited Audited Liabilities and Shareholders' Equity March 31, 1994 June 30, 1993 Current liabilities: Accounts payable $ 8,695,000 $ 7,860,000 Accrued liabilities 8,248,000 8,720,000 Current portion of long-term debt 562,000 422,000 Income taxes payable 817,000 164,000 Total current liabilities 18,322,000 17,166,000 ____________ ____________ Long-term debt 1,242,000 1,665,000 ____________ ____________ Other liabilities: Deferred income taxes 4,747,000 5,827,000 Other 309,000 333,000 5,056,000 6,160,000 ____________ ____________ Shareholders' equity 101,159,000 98,947,000 ____________ ____________ $125,779,000 $123,938,000 ____________ ____________ ____________ ____________ See accompanying notes to consolidated financial statements.
- 4 - Unaudited INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Nine Months Ended March 31, March 31, 1994 1993 1994 1993 Net sales $40,426,000 $33,642,000 $127,097,000 $112,537,000 Costs and expenses: Cost of sales 27,857,000 24,537,000 90,991,000 81,561,000 Selling, general and administrative expenses 9,741,000 10,103,000 29,455,000 28,882,000 Interest (income) expense, net 360,000 (632,000) (182,000) (960,000) Income before income taxes and a change in accounting principle 2,468,000 (366,000) 6,833,000 3,054,000 Provision for income taxes 940,000 (240,000) 2,580,000 1,050,000 Income before a change in accounting principle 1,528,000 (126,000) 4,253,000 2,004,000 Cumulative effect on prior years of a change in accounting for income taxes - - 1,430,000 - Net income $ 1,528,000 $ (126,000) $ 5,683,000 $ 2,004,000 ___________ ___________ ____________ ____________ ___________ ___________ ____________ ____________ Per common share: Earnings before cumulative effect of a change in accounting principle $.36 $(.03) $1.00 $.47 Cumulative effect on prior years of a change in accounting for income taxes - - .34 - Earnings per common share $.36 $(.03) $1.34 $.47 ____ _____ _____ ____ ____ _____ _____ ____ Cash dividends per common share $.25 $.25 $.75 $.75 Weighted average number of common shares outstanding 4,227,920 4,219,623 4,225,552 4,219,083 See accompanying notes to consolidated financial statements.
- 5 - Unaudited INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended March 31, 1994 1993 Cash flows from operating activities: Net income $ 5,683,000 $ 2,004,000 Adjustments for noncash transactions: Depreciation and amortization 3,401,000 3,642,000 Change in deferred income taxes (1,162,000) - Changes in assets and liabilities: Receivables (2,060,000) 5,104,000 Inventories (1,818,000) (1,299,000) Prepaid expenses and other (1,535,000) (372,000) Accounts payable 943,000 (135,000) Accrued liabilities and other (417,000) 1,151,000 Income taxes payable 629,000 (469,000) Net cash provided by operating activities 3,664,000 9,626,000 Cash flows from investing activities: Capital expenditures (3,054,000) (2,778,000) Proceeds from sales of capital assets 112,000 422,000 Net cash used in investing activities (2,942,000) (2,356,000) Cash flows from financing activities: Repayment of long-term debt (283,000) (422,000) Exercise of stock options 133,000 18,000 Dividends paid to shareholders (3,171,000) (3,165,000) Net cash used in financing activities (3,321,000) (3,569,000) Effect of exchange rate changes on cash 1,000 (112,000) Net change in cash and short-term investments (2,598,000) 3,589,000 Cash and short-term investments at beginning of period 19,254,000 17,251,000 Cash and short-term investments at end of period $16,656,000 $20,840,000 ___________ ___________ ___________ ___________ See accompanying notes to consolidated financial statements.
- 6 - Unaudited INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Basis of Presentation In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (including normal recurring accruals) necessary to present fairly its financial position as of March 31, 1994 and June 30, 1993, and the results of operations for the three and nine month periods ended March 31, 1994 and 1993, and the cash flows for the nine month periods ended March 31, 1994 and 1993. The results of operations for the three and nine month periods ended March 31, 1994 and 1993 are not necessarily indicative of the results to be expected for the full year. The financial statements included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and footnote disclosures normally included in financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted pursuant to such rules and regulations, although the Company believes that the disclosures are adequate to make the information presented not misleading. It is suggested that these financial statements be read in conjunction with the financial statements and the notes thereto included in the Company's latest annual report on Form 10-K. Cumulative Effect On Prior Years Of A Change In Accounting Principle In July 1993, the Company adopted Statement of Financial Accounting Standards No. 109 (FAS 109), Accounting for Income Taxes. The adoption of FAS 109 changes the Company's method of accounting for income taxes from the deferred method to an asset and liability approach. Previously, the Company deferred the past tax effects of timing differences between financial reporting and taxable income. The asset and liability approach requires the recognition of deferred tax liabilities and assets for the expected future consequences of temporary differences between the carrying amounts for financial reporting purposes and the tax bases of other assets and liabilities. As of July 1, 1993, the Company recorded a tax credit of $1,430,000 or $.34 per share, which represents the net decrease to the deferred tax liability as of that date. This amount has been reflected in current year net income as the cumulative effect of a change in accounting principle. - 7 - Unaudited INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES Management's Discussion and Analysis of Financial Condition and Results of Operations Significant Changes in Results of Operations: Net sales increased by $6,784,000 or 20.2% for the quarter ended March 31, 1994 and by $14,560,000 or 12.9% for the nine months then ended when compared with the 1993 periods. These sales are the net result of domestic sales increases of $7,672,000 or 24.7% for the quarter and $15,873,000 or 15.5% for the nine month period which were offset by foreign sales decreases of $888,000 or 34.5% for the quarter and by $1,313,000 or 13.1% for the nine month period. The net sales include significant increases posted by the Aluminum Extrusion Group, up $3,499,000 or 53.5% for the quarter and $6,538,000 or 31.6% for the nine months; the Commercial Products Group, up $1,887,000 or 13.9% for the quarter and $3,139,000 or 6.9% for the nine months; and by the Glass Products Group, up $620,000 or 17.4% for the quarter and by $2,694,000 or 26.0% for the nine months. Cost of sales as a percentage of net sales decreased by 4.0% for the quarter ended March 31, 1994 and by 0.9% for the nine months then ended when compared with the 1993 periods. These decreases relate to proportional decreases in production costs in each of the product lines due to efficiencies attained from increases in volume. These decreases were offset during the first six months of the fiscal year by increases in production costs at the two California aluminum residential products facilities as a result of plant reorganizations necessitated by the introduction of a new line of more energy efficient products required to meet stringent energy standards mandated by the California Energy Commission. Selling, general and administrative expenses decreased by $362,000 or 3.6% for the quarter and increased by $573,000 or 2.0% for the nine month period. These expenses have risen primarily related to additional distribution costs associated with the increased volumes of business. The increase for the quarter was offset by a positive net adjustment to current and prior years workers' compensation insurance costs. The decreases in net interest income for the three and nine month periods relate to significant decreases in the market values of interest rate sensitive securities during the quarter ended March 31, 1994. The effective tax rate for the nine months ended March 31, 1994 was 37.8% whereas the comparable period of fiscal year 1993 was 34.4%. - 8 - Unaudited Liquidity and Capital Resources: Working capital increased to $61,786,000 during the nine months ended March 31, 1994, which represents an increase of $339,000 from June 30, 1993. The ratio of current assets to current liabilities is currently 4.4 as compared to 4.6 as of the beginning of the year. The Company's projected capital expenditures and related financing remain unchanged from those described in the June 30, 1993 annual report. The Company's line of credit remains unchanged from that noted in the June 30, 1993 annual report to shareholders. - 9 - INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. International Aluminum Corporation (Registrant) Date May 10, 1994 DAVID C. TREINEN David C. Treinen Vice President - Finance (Principal Financial Officer) Date May 10, 1994 MITCHELL K. FOGELMAN Mitchell K. Fogelman Assistant Vice President - Finance and Controller (Principal Accounting Officer) - 10 - -----END PRIVACY-ENHANCED MESSAGE-----