-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, N2LwGDAaUKwoVgJe989zMyno52r5SBYlW3VYeN71n6NhvvaeF8o77nisMq7d6Adv KfiiHAt9+uffHckuwUHSig== 0000051103-96-000002.txt : 19960515 0000051103-96-000002.hdr.sgml : 19960515 ACCESSION NUMBER: 0000051103-96-000002 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960514 SROS: NYSE SROS: PSE 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: 96562341 BUSINESS ADDRESS: STREET 1: 767 MONTEREY PASS RD CITY: MONTEREY PARK STATE: CA ZIP: 91754 BUSINESS PHONE: 2132641670 10-Q 1 FORM 10-Q FOR QUARTER ENDED MARCH 31, 1996 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, 1996 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 (Principal executive office) 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 At May 1, 1996 there were 4,259,980 shares of Common Stock outstanding. Page 1 of 10 Pages INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES INDEX Page Nos. PART I Financial Information Consolidated Balance Sheets - March 31, 1996 and June 30, 1995 3 Consolidated Statements of Income - three and nine month periods ended March 31, 1996 and 1995 5 Consolidated Statements of Cash Flows - nine months ended March 31, 1996 and 1995 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, 1996 June 30, 1995 Current assets: Cash and cash equivalents $ 10,287,000 $ 3,550,000 Investments 2,213,000 Accounts receivable, net 32,795,000 34,877,000 Unbilled receivables 1,067,000 1,222,000 Inventories: Raw materials 31,303,000 31,002,000 Work-in-process 2,435,000 3,463,000 Finished goods 7,201,000 7,308,000 Prepaid expenses 2,164,000 2,060,000 Future income tax benefits 1,596,000 1,596,000 Total current assets 88,848,000 87,291,000 ____________ ____________ Property, plant and equipment, at cost 98,894,000 97,412,000 Accumulated depreciation (52,992,000) (52,567,000) 45,902,000 44,845,000 ____________ ____________ Other assets: Costs in excess of net assets of purchased businesses 4,739,000 4,839,000 Other 1,129,000 4,739,000 5,968,000 ____________ ____________ $139,489,000 $138,104,000 ____________ ____________ ____________ ____________ See accompanying notes to consolidated financial statements.
- 3 - INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
Unaudited Audited Liabilities and Shareholders' Equity March 31, 1996 June 30, 1995 Current liabilities: Accounts payable $ 8,569,000 $ 7,820,000 Accrued liabilities 9,148,000 9,555,000 Current portion of long-term debt 561,000 423,000 Income taxes payable 509,000 1,098,000 Total current liabilities 18,787,000 18,896,000 ____________ ____________ Long-term debt 119,000 542,000 ____________ ____________ Other liabilities: Deferred income taxes 4,496,000 4,496,000 Other 382,000 399,000 4,878,000 4,895,000 ____________ ____________ Shareholders' equity 115,705,000 113,771,000 ____________ ____________ $139,489,000 $138,104,000 ____________ ____________ ____________ ____________ 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, 1996 1995 1996 1995 Net sales $49,910,000 $53,966,000 $160,302,000 $158,721,000 Costs and expenses: Cost of sales 36,213,000 35,982,000 115,697,000 106,719,000 Selling, general and administrative expenses 11,755,000 12,782,000 35,910,000 35,246,000 Interest (income) expense, net (58,000) (339,000) (128,000) (234,000) Income before income taxes 2,000,000 5,541,000 8,823,000 16,990,000 Provision for income taxes 880,000 2,230,000 3,610,000 6,760,000 Net income $ 1,120,000 $ 3,311,000 $ 5,213,000 $ 10,230,000 ___________ ___________ ____________ ____________ ___________ ___________ ____________ ____________ Weighted average number of common shares outstanding 4,258,405 4,238,885 4,256,691 4,236,705 Earnings per common share $.26 $.78 $1.22 $2.41 Cash dividends per common share $.25 $.25 $.75 $.75 See accompanying notes to consolidated financial statements.
- 5 - Unaudited INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
Nine Months Ended March 31, 1996 1995 Cash flows from operating activities: Net income $ 5,213,000 $10,230,000 Adjustments for noncash transactions: Depreciation and amortization 3,902,000 3,598,000 Changes in assets and liabilities: Receivables 2,065,000 (1,026,000) Inventories 786,000 (11,549,000) Prepaid expenses and other 1,014,000 (430,000) Accounts payable 832,000 395,000 Accrued liabilities and other (374,000) ( 78,000) Income taxes payable (590,000) (715,000) Net cash provided by operating activities 12,848,000 425,000 Cash flows from investing activities: Capital expenditures (5,151,000) (6,523,000) Proceeds from sales of capital assets 192,000 2,491,000 Changes in investments 2,213,000 7,212,000 Net cash provided by (used in) investing activities (2,746,000) 3,180,000 Cash flows from financing activities: Repayment of long-term debt (285,000) (561,000) Exercise of stock options 112,000 63,000 Dividends paid to shareholders (3,194,000) (3,179,000) Net cash used in financing activities (3,367,000) (3,677,000) Effect of exchange rate changes on cash 2,000 19,000 Net change in cash and cash equivalents 6,737,000 (53,000) Cash and cash equivalents at beginning of period 3,550,000 6,413,000 Cash and cash equivalents at end of period $10,287,000 $ 6,360,000 ___________ ___________ ___________ ___________ 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 (which consist solely of normal recurring adjustments unless otherwise disclosed) necessary to present fairly its financial position as of March 31, 1996 and June 30, 1995, and the results of operations for the three and nine month periods ended March 31, 1996 and 1995, and the cash flows for the nine month periods ended March 31, 1996 and 1995. The results of operations for the three and nine month periods ended March 31, 1996 and 1995 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. - 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: Although net sales for the quarter ended March 31, 1996 decreased by $4,056,000 or 7.5% when compared with the 1995 period, the net sales for the related nine month period posted a small increase of $1,581,000 or 1.0% over the prior year period. The quarterly decrease primarily relates to a $3,603,000 or 23.5% decline in sales of the Aluminum Extrusion Group. The nine month period increase relates to a $8,448,000 or 13.0% increase posted by the Commercial Products Group which was mostly offset by a $5,485,000 or 13.4% decrease posted by the Aluminum Extrusion Group and a $1,392,000 or 3.5% decrease posted by the Residential Products Group. Cost of sales as a percentage of net sales increased by 5.9% for the quarter ended March 31, 1996 and by 5.0% for the nine months then ended when compared with the 1995 periods. The increases are primarily attributable to significantly decreased margins in the Aluminum Extrusion Group resulting from lower volume and declining selling prices. Also a factor are decreased margins in the Residential Products Group stemming from lower volume. Selling, general and administrative expenses decreased by $1,027,000 or 8.0% for the quarter but increased by $664,000 or 1.9% for the nine month period. The increase for the nine month period primarily relates to additional selling costs associated with the expansion of the commercial products satellite warehouse program. These increased costs were partially offset as distribution and administrative costs decreased during the third quarter associated with the decreased volumes of business. The decreases in net interest income for the three and nine month periods relate to significant increases in the market values of interest rate sensitive securities during the prior year quarter ended March 31, 1995. The effective tax rate for the nine months ended March 31, 1996 was 40.9% whereas the comparable period of fiscal year 1995 was 39.8%. - 8 - Unaudited Liquidity and Capital Resources: Working capital increased to $70,061,000 during the nine months ended March 31, 1996, which represents an increase of $1,666,000 from June 30, 1995. The ratio of current assets to current liabilities is currently 4.7 as compared to 4.6 as of the beginning of the year. The Company's projected net capital expenditures for fiscal 1996 include $6,500,000 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, 1995 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, 1996 DAVID C. TREINEN David C. Treinen Senior Vice President - Finance and Administration (Principal Financial Officer) Date May 10, 1996 MITCHELL K. FOGELMAN Mitchell K. Fogelman Vice President - Controller (Principal Accounting Officer) - 10 - EX-27 2 FDS FOR NINE MONTHS ENDED MARCH 31, 1996
5 1,000 9-MOS JUN-30-1996 MAR-31-1996 10,287 0 33,862 0 40,939 88,848 98,894 52,992 139,489 18,787 119 0 0 8,450 107,255 139,489 160,302 160,302 115,697 151,607 (128) 625 88 8,823 3,610 5,213 0 0 0 5,213 1.22 0
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