-----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, JOn9yKGB4j8AYU7KBW65tn3ARDp+O4gZ94J24kgIt4VWS59eIls1FtmpRVX3dPpO bHnMP3EQTyYVdL/ODhj6/A== 0000051103-96-000004.txt : 19961118 0000051103-96-000004.hdr.sgml : 19961118 ACCESSION NUMBER: 0000051103-96-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960930 FILED AS OF DATE: 19961114 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: 96662763 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 SEPTEMBER 30, 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 September 30, 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 November 1, 1996 there were 4,261,580 shares of Common Stock outstanding. Page 1 of 9 Pages INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES INDEX Page Nos. PART I Financial Information Consolidated Balance Sheets - September 30, 1996 and June 30, 1996 3 Consolidated Statements of Income - three months ended September 30, 1996 and 1995 5 Consolidated Statements of Cash Flows - three months ended September 30, 1996 and 1995 6 Notes to Consolidated Financial Statements 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Signatures 9 - 2 - PART I INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
Unaudited Audited Assets Sept. 30, 1996 June 30, 1996 Current assets: Cash and cash equivalents $ 5,860,000 $ 13,230,000 Accounts receivable, net 33,960,000 34,498,000 Unbilled receivables 590,000 823,000 Inventories: Raw materials 29,939,000 29,667,000 Work-in-process 1,998,000 2,252,000 Finished goods 7,835,000 7,663,000 Prepaid expenses and deposits 12,124,000 2,712,000 Future income tax benefits 1,350,000 1,350,000 Total current assets 93,656,000 92,195,000 ____________ ____________ Property, plant and equipment, at cost 98,187,000 98,298,000 Accumulated depreciation (54,259,000) (53,356,000) 43,928,000 44,942,000 ____________ ____________ Other assets: Costs in excess of net assets of purchased businesses 4,641,000 4,706,000 ____________ ____________ $142,225,000 $141,843,000 ____________ ____________ ____________ ____________ See accompanying notes to consolidated financial statements.
- 3 - INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
Unaudited Audited Liabilities and Shareholders' Equity Sept. 30, 1996 June 30, 1996 Current liabilities: Accounts payable $ 9,854,000 $ 9,648,000 Accrued liabilities 8,659,000 9,343,000 Current portion of long-term debt 403,000 542,000 Income taxes payable 1,355,000 766,000 Total current liabilities 20,271,000 20,299,000 ____________ ____________ Other liabilities: Deferred income taxes 4,337,000 4,337,000 Other 333,000 325,000 4,670,000 4,662,000 ____________ ____________ Shareholders' equity 117,284,000 116,882,000 ____________ ____________ $142,225,000 $141,843,000 ____________ ____________ ____________ ____________ See accompanying notes to consolidated financial statements.
- 4 - Unaudited INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended September 30, 1996 1995 Net sales $56,928,000 $56,038,000 Costs and expenses: Cost of sales 40,838,000 40,640,000 Selling, general and administrative expenses 13,801,000 11,744,000 Interest (income) expense, net (97,000) (12,000) Income before income taxes 2,386,000 3,666,000 Provision for income taxes 1,050,000 1,590,000 Net income $ 1,336,000 $ 2,076,000 ___________ ___________ ___________ ___________ Weighted average number of common shares outstanding 4,260,530 4,254,520 Earnings per common share $.31 $.49 Cash dividends per common share $.25 $.25 See accompanying notes to consolidated financial statements.
- 5 - Unaudited INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended September 30, 1996 1995 Cash flows from operating activities: Net income $ 1,336,000 $ 2,076,000 Adjustments for noncash transactions: Depreciation and amortization 1,299,000 1,181,000 Writedown of long-lived assets 888,000 Changes in assets and liabilities: Receivables 866,000 (1,590,000) Inventories (164,000) 809,000 Prepaid expenses and other (688,000) (801,000) Accounts payable 174,000 2,578,000 Accrued liabilities and other (703,000) (1,203,000) Income taxes payable 589,000 899,000 Net cash provided by operating activities 3,597,000 3,949,000 Cash flows from investing activities: Capital expenditures (1,079,000) (1,961,000) Proceeds from sales of capital assets 25,000 34,000 Acquisitions of businesses (8,720,000) Changes in investments 1,766,000 Net cash used in investing activities (9,774,000) (161,000) Cash flows from financing activities: Repayment of long-term debt (139,000) (140,000) Exercise of stock options 21,000 66,000 Dividends paid to shareholders (1,065,000) (1,064,000) Net cash used in financing activities (1,183,000) (1,138,000) Effect of exchange rate changes on cash (10,000) 10,000 Net change in cash and cash equivalents (7,370,000) 2,660,000 Cash and cash equivalents at beginning of period 13,230,000 3,550,000 Cash and cash equivalents at end of period $ 5,860,000 $ 6,210,000 ___________ ___________ ___________ ___________ 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 September 30, 1996 and June 30, 1996, and the results of operations and cash flows for the three month periods ended September 30, 1996 and 1995. The results of operations for the three month periods ended September 30, 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. Subsequent Events On October 1, 1996, the Company completed the purchase of Orca Coatings Ltd. ("Orca") of Surrey, British Columbia, Canada. Orca is an architectural coatings applicator and a distributor of storefront and architectural metal products. On October 1, 1996, the Company also completed the purchase of Altura Architectural Products, Inc. ("Altura") of Houston, Texas. Altura is a manufacturer of interior aluminum office fronts. Both of the above purchases were made with cash from the Company's existing cash reserves. These payments were made during September 1996 and are included in "Deposits" on the accompanying September 30, 1996 balance sheets. - 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: The increase in net sales for the quarter ended September 30, 1996 of $890,000 or 1.6% from the comparable quarter of fiscal year 1996 is comprised solely of the net increase in domestic sales. The net sales include increases posted by the Commercial Products Group, up $1,106,000 or 4.4% and by the Residential Products Group, up $573,000 or 4.3%. These increases were partially offset by a $709,000 or 15.1% decrease posted by the Glass Products Group. The cost of sales as a percentage of net sales was 71.7% for the quarter ended September 30, 1996 as opposed to 72.5% for the comparable prior year period. This decrease is primarily attributable to slightly increased margins in the Aluminum Extrusion Group resulting from decreased material costs. Additionally, substantially all of the Company's fabrication facilities incurred increased margins associated with declining material costs. Selling, general and administrative expenses for the quarter were $2,057,000 higher than those of the comparable quarter of the prior year. This increase is comprised of a $650,000 or 5.5% increase in usual costs associated with the increased sales volume, a $519,000 increase in retrospective charges for workers compensation insurance and a $888,000 non-recurring writedown of long- lived assets. The increase in net interest income for the quarter relates to the significantly increased level of funds available for investment during the quarter. The effective tax rate for the quarter ended September 30, 1996 was 44.0% whereas the comparable quarter of fiscal year 1996 was 43.4%. Liquidity and Capital Resources: Working capital increased to $73,385,000 during the three months ended September 30, 1996, an increase of $1,489,000 from June 30, 1996. The ratio of current assets to current liabilities is currently 4.6 as compared to 4.5 as of the beginning of the year. Other than the cash purchases of the two companies effective October 1, 1996 (see the Subsequent Events note), the Company's projected capital expenditures for fiscal 1997 and related financing remain unchanged from those described in the June 30, 1996 Annual Report. The Company's line of credit remains unchanged from that noted in the June 30, 1996 Annual Report to Shareholders. - 8 - 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 November 13, 1996 DAVID C. TREINEN David C. Treinen Senior Vice President - Finance and Administration (Principal Financial Officer) Date November 13, 1996 MITCHELL K. FOGELMAN Mitchell K. Fogelman Vice President - Controller (Principal Accounting Officer) - 9 - EX-27 2 FDS FOR THREE MONTHS ENDED SEPTEMBER 30, 1996
5 1,000 3-MOS JUN-30-1997 SEP-30-1996 5,860 0 34,550 0 39,772 93,656 98,187 54,259 142,225 20,271 0 0 0 8,474 108,810 142,225 56,928 56,928 40,838 54,639 (97) 213 17 2,386 1,050 1,336 0 0 0 1,336 .31 0
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