-----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, fzykkqq+6XN76W3hqmI7ZXMwbr4DxrlTxKVLQggq/UAJb5pa1OA1070/litjwycR L8DU/E7uYLrpvl6mJq3kzw== 0000051103-95-000001.txt : 19950515 0000051103-95-000001.hdr.sgml : 19950515 ACCESSION NUMBER: 0000051103-95-000001 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941231 FILED AS OF DATE: 19950213 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: INTERNATIONAL ALUMINUM CORP CENTRAL INDEX KEY: 0000051103 STANDARD INDUSTRIAL CLASSIFICATION: METAL DOORS, SASH, FRAMES, MOLDING & TRIM [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: 95509034 BUSINESS ADDRESS: STREET 1: 767 MONTEREY PASS RD CITY: MONTEREY PARK STATE: CA ZIP: 91754 BUSINESS PHONE: 2132641670 10-Q 1 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 December 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 office) (Telephone Number) Former name, address and fiscal year, if changed since last report: None 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 February 1, 1995 Common Stock $1.00 Par Value 4,238,860 Page 1 of 11 Pages INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES INDEX Page Nos. PART I Financial Information Consolidated Balance Sheets - December 31, 1994 and June 30, 1994 3 Consolidated Statements of Income - three and six month periods ended December 31, 1994 and 1993 5 Consolidated Statements of Cash Flows - six months ended December 31, 1994 and 1993 6 Notes to Consolidated Financial Statements 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 8 PART II Other Information Item 4. Submission of Matters to a Vote of Security Holders 10 Signatures 11 - 2 - PART I INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
Unaudited Audited Assets Dec. 31, 1994 June 30, 1994 Current assets: Cash $ 4,782,000 $ 5,973,000 Short-term investments 9,117,000 9,727,000 Accounts receivable, net 35,880,000 34,715,000 Unbilled receivables 939,000 1,055,000 Inventories: Raw materials 23,811,000 21,415,000 Work-in-process 3,519,000 2,332,000 Finished goods 6,364,000 4,994,000 Prepaid expenses 2,071,000 1,580,000 Future income tax benefits 1,326,000 1,326,000 Total current assets 87,809,000 83,117,000 ____________ ____________ Property, plant and equipment, at cost 87,803,000 87,921,000 Less - Accumulated depreciation (49,981,000) (48,133,000) 37,822,000 39,788,000 ____________ ____________ Other assets: Costs in excess of net assets of purchased businesses 4,906,000 4,972,000 Other 1,142,000 1,153,000 6,048,000 6,125,000 ____________ ____________ $131,679,000 $129,030,000 ____________ ____________ ____________ ____________ See accompanying notes to consolidated financial statements.
- 3 - INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
Unaudited Audited Liabilities and Shareholders' Equity Dec. 31, 1994 June 30, 1994 Current liabilities: Accounts payable $ 8,205,000 $ 8,449,000 Accrued liabilities 8,296,000 8,877,000 Current portion of long-term debt 562,000 562,000 Income taxes payable 547,000 1,777,000 Total current liabilities 17,610,000 19,665,000 ____________ ____________ Long-term debt 681,000 1,103,000 ____________ ____________ Other liabilities: Deferred income taxes 4,466,000 4,466,000 Other 378,000 361,000 4,844,000 4,827,000 ____________ ____________ Shareholders' equity 108,544,000 103,435,000 ____________ ____________ $131,679,000 $129,030,000 ____________ ____________ ____________ ____________ See accompanying notes to consolidated financial statements.
- 4 - Unaudited INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended Six Months Ended December 31, December 31, 1994 1993 1994 1993 Net sales $52,992,000 $44,539,000 $104,755,000 $ 86,671,000 Costs and expenses: Cost of sales 35,803,000 32,281,000 70,737,000 63,134,000 Selling, general and administrative expenses 11,496,000 9,950,000 22,464,000 19,714,000 Interest (income) expense, net 203,000 (118,000) 105,000 (542,000) Income before income taxes and a change in accounting principle 5,490,000 2,426,000 11,449,000 4,365,000 Provision for income taxes 2,180,000 900,000 4,530,000 1,640,000 Income before a change in accounting principle 3,310,000 1,526,000 6,919,000 2,725,000 Cumulative effect on prior years of a change in accounting for income taxes - - - 1,430,000 Net income $ 3,310,000 $ 1,526,000 $ 6,919,000 $ 4,155,000 ___________ ___________ ____________ ____________ ___________ ___________ ____________ ____________ Per common share: Earnings before cumulative effect of a change in accounting principle $.78 $.36 $1.63 $ .64 Cumulative effect on prior years of a change in accounting for income taxes - - - .34 Earnings per common share $.78 $.36 $1.63 $ .98 ____ ____ _____ _____ ____ ____ _____ _____ Cash dividends per common share $.25 $.25 $.50 $.50 Weighted average number of common shares outstanding 4,238,362 4,226,878 4,235,767 4,224,414 See accompanying notes to consolidated financial statements.
- 5 - Unaudited INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
Six Months Ended December 31, 1994 1993 Cash flows from operating activities: Net income $ 6,919,000 $ 4,155,000 Adjustments for noncash transactions: Depreciation and amortization 2,322,000 2,267,000 Change in deferred income taxes - (1,430,000) Changes in assets and liabilities: Receivables (865,000) (1,365,000) Inventories (4,898,000) 1,049,000 Prepaid expenses and other (467,000) (1,368,000) Accounts payable (315,000) (759,000) Accrued liabilities and other (619,000) (468,000) Income taxes payable (1,227,000) 574,000 Net cash provided by operating activities 850,000 2,655,000 Cash flows from investing activities: Capital expenditures (2,582,000) (2,045,000) Proceeds from sales of capital assets 2,403,000 44,000 Net cash used in investing activities (179,000) (2,001,000) Cash flows from financing activities: Repayment of long-term debt (422,000) (144,000) Exercise of stock options 61,000 92,000 Dividends paid to shareholders (2,119,000) (2,113,000) Net cash used in financing activities (2,480,000) (2,165,000) Effect of exchange rate changes on cash 8,000 3,000 Net change in cash and short-term investments (1,801,000) (1,508,000) Cash and short-term investments at beginning of period 15,700,000 19,254,000 Cash and short-term investments at end of period $13,899,000 $17,746,000 ___________ ___________ ___________ ___________ 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 December 31, 1994 and June 30, 1994, and the results of operations for the three and six month periods ended December 31, 1994 and 1993, and the cash flows for the six month periods ended December 31, 1994 and 1993. The results of operations for the three and six month periods ended December 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 benefit 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 prior 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 $8,453,000 or 19.0% for the quarter ended December 31, 1994 and by $18,084,000 or 20.9% for the six months then ended when compared with the 1993 periods. These sales include significant increases posted by the Commercial Products Group, up $4,947,000 or 29.1% for the quarter and by $9,120,000 or 27.6% for the six months and by the Aluminum Extrusion Group, up $4,121,000 or 47.5% for the quarter and $8,311,000 or 48.3% for the six months. Cost of sales as a percentage of net sales decreased by 4.9% for the quarter ended December 31, 1994 and by 5.3% for the six months then ended when compared with the 1993 periods. These decreases are primarily attributable to production cost efficiencies in the Aluminum Extrusion Group resulting from significantly increase volume coupled with expanded margins at the Company's domestic commercial and residential fabrication facilities associated with increases in volume and rising prices. Selling, general and administrative expenses increased by $1,546,000 or 15.5% for the quarter and by $2,750,000 or 13.9% for the six month period. The increases primarily relate to additional selling and distribution costs associated with the increased volumes of business. The decrease in net interest income for the six month period primarily reflects the significant decrease in the market value of interest rate sensitive securities. The effective tax rate for the six months ended December 31, 1994 was 39.6% whereas the comparable period of fiscal year 1994 was 37.6%. - 8 - Unaudited Liquidity and Capital Resources: Working capital increased to $70,199,000 during the six months ended December 31, 1994, which represents an increase of $6,747,000 from June 30, 1994. The ratio of current assets to current liabilities is currently 5.0 as compared to 4.2 as of the beginning of the year. The Company's projected net capital expenditures for fiscal 1995 include $7,000,000 for scheduled expansion of production capacity in addition to the normal annual noncapitalized expenditures for replacement items. The Company anticipates financing these expenditures through internal cash flow and cash reserves. The Company's line of credit remains unchanged from that noted in the June 30, 1994 annual report to shareholders. - 9 - PART II. OTHER INFORMATION Item 4(c). Submission of Matters to a Vote of Security Holders On October 27, 1994, the Company held its 1994 Annual Shareholders Meeting. Shareholders voted proxies representing 3,712,244 shares which was 87.7% of the 4,234,762 shares outstanding on the record date. The proposed slate of officers were elected with 3,682,618 shares and the selected independent accountants were ratified with 3,706,792 shares. - 10 - 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 February 10, 1995 DAVID C. TREINEN David C. Treinen Vice President - Finance (Principal Financial Officer) Date February 10, 1995 MITCHELL K. FOGELMAN Mitchell K. Fogelman Assistant Vice President - Finance and Controller (Principal Accounting Officer) - 11 - EX-27 2 WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
5 1,000 QTR-2 JUN-30-1995 DEC-31-1994 4782 9117 37842 (1023) 33694 87809 87803 (49981) 131679 17610 681 8124 0 0 100420 131679 52992 52992 35803 47299 203 191 86 5490 2180 3310 0 0 0 3310 .78 .78
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