-----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, Sn3bu6Uuvd4EqzzrVWTuQZWXM2ASzZPCQked73ZiFY2FoIxyN7otZh5vrV7Lx7+k zynvxNVaDwvoqG3TuliXSw== 0000051103-97-000004.txt : 19971113 0000051103-97-000004.hdr.sgml : 19971113 ACCESSION NUMBER: 0000051103-97-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970930 FILED AS OF DATE: 19971113 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: SEC FILE NUMBER: 001-07256 FILM NUMBER: 97715664 BUSINESS ADDRESS: STREET 1: 767 MONTEREY PASS RD CITY: MONTEREY PARK STATE: CA ZIP: 91754 BUSINESS PHONE: 2132641670 MAIL ADDRESS: STREET 1: 767 MONTEREY PASS ROAD CITY: MONTERY PARK STATE: CA ZIP: 91754 10-Q 1 FORM 10-Q FOR QUARTER ENDED SEPTEMBER 30, 1997 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, 1997 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 3, 1997 there were 4,289,494 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, 1997 and June 30, 1997 3 Consolidated Statements of Income - three months ended September 30, 1997 and 1996 5 Consolidated Statements of Cash Flows - three months ended September 30, 1997 and 1996 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, 1997 June 30, 1997 Current assets: Cash and cash equivalents $ 7,968,000 $ 6,485,000 Accounts receivable, net 36,666,000 35,773,000 Unbilled receivables 1,028,000 885,000 Inventories: Raw materials 31,468,000 32,275,000 Work-in-process 1,995,000 2,320,000 Finished goods 7,170,000 7,398,000 Prepaid expenses and deposits 2,452,000 1,834,000 Future income tax benefits 1,289,000 1,289,000 Total current assets 90,036,000 88,259,000 ____________ ____________ Property, plant and equipment, at cost 100,831,000 99,564,000 Accumulated depreciation (54,422,000) (53,600,000) 46,409,000 45,964,000 ____________ ____________ Other assets: Costs in excess of net assets of purchased businesses 10,156,000 10,290,000 Other 526,000 528,000 10,682,000 10,818,000 $147,127,000 $145,041,000 ____________ ____________ ____________ ____________ See accompanying notes to consolidated financial statements.
- 3 - INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
Unaudited Audited Liabilities and Shareholders' Equity Sept. 30, 1997 June 30, 1997 Current liabilities: Accounts payable $ 10,324,000 $ 9,417,000 Accrued liabilities 9,877,000 11,727,000 Income taxes payable 2,429,000 976,000 Total current liabilities 22,630,000 22,120,000 ____________ ____________ Other liabilities: Deferred income taxes 4,362,000 4,362,000 Other 301,000 319,000 4,663,000 4,681,000 ____________ ____________ Shareholders' equity 119,834,000 118,240,000 ____________ ____________ $147,127,000 $145,041,000 ____________ ____________ ____________ ____________ See accompanying notes to consolidated financial statements.
- 4 - Unaudited INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended September 30, 1997 1996 Net sales $59,509,000 $56,928,000 Costs and expenses: Cost of sales 41,721,000 40,838,000 Selling, general and administrative expenses 13,077,000 13,801,000 Interest (income) expense, net (13,000) (97,000) Income before income taxes 4,724,000 2,386,000 Provision for income taxes 2,020,000 1,050,000 Net income $ 2,704,000 $ 1,336,000 ___________ ___________ ___________ ___________ Weighted average number of common shares outstanding 4,268,988 4,260,530 Earnings per common share $.63 $.31 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, 1997 1996 Cash flows from operating activities: Net income $ 2,704,000 $ 1,336,000 Adjustments for noncash transactions: Depreciation and amortization 1,452,000 1,299,000 Writedown of long-lived assets 888,000 Changes in assets and liabilities: Receivables (1,228,000) 866,000 Inventories 1,308,000 (164,000) Prepaid expenses and other (629,000) (688,000) Accounts payable 1,064,000 174,000 Accrued liabilities and other (1,803,000) (703,000) Income taxes payable 1,454,000 589,000 Net cash provided by operating activities 4,322,000 3,597,000 Cash flows from investing activities: Capital expenditures (1,894,000) (1,079,000) Proceeds from sales of capital assets 23,000 25,000 Acquisitions of businesses (8,720,000) Net cash used in investing activities (1,871,000) (9,774,000) Cash flows from financing activities: Repayment of long-term debt (139,000) Exercise of stock options 93,000 21,000 Dividends paid to shareholders (1,068,000) (1,065,000) Net cash used in financing activities (975,000) (1,183,000) Effect of exchange rate changes on cash 7,000 (10,000) Net change in cash and cash equivalents 1,483,000 (7,370,000) Cash and cash equivalents at beginning of period 6,485,000 13,230,000 Cash and cash equivalents at end of period $ 7,968,000 $ 5,860,000 ___________ ___________ ___________ ___________ 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, 1997 and June 30, 1997, and the results of operations and cash flows for the three month periods ended September 30, 1997 and 1996. The results of operations for the three month periods ended September 30, 1997 and 1996 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: The increase in net sales for the quarter ended September 30, 1997 of $2,581,000 or 4.5% from the comparable quarter of fiscal year 1997 is comprised solely of the net increase in domestic sales. The net sales include increases posted by the Commercial Products Group, up $1,701,000 or 6.5% and by the Residential Products Group, up $531,000 or 3.9%. The cost of sales as a percentage of net sales was 70.1% for the quarter ended September 30, 1997 as opposed to 71.7% for the comparable prior year period. This decrease is primarily attributable to increased margins in the Aluminum Extrusion Group resulting from decreased material costs. Selling, general and administrative expenses for the quarter were $724,000 lower than those of the comparable quarter of the prior year. This decrease consists of a $327,000 or 2.4% increase in costs associated with the increased sales volume, a $163,000 decrease in retrospective charges for workers compensation insurance and a $888,000 decrease due to the prior year having included a writedown of long-lived assets. The decrease in net interest income for the quarter relates to the significantly decreased level of funds available for investment during the quarter. The effective tax rate for the quarter ended September 30, 1997 was 42.8% whereas the comparable quarter of fiscal year 1997 was 44.0%. Liquidity and Capital Resources: Working capital increased to $67,406,000 during the three months ended September 30, 1997, an increase of $1,267,000 from June 30, 1997. The ratio of current assets to current liabilities is currently 4.0 which is unchanged from the beginning of the year. The Company's projected capital expenditures for fiscal 1998 and related financing remain unchanged from those described in the June 30, 1997 Annual Report. The Company's line of credit remains unchanged from that noted in the June 30, 1997 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 12, 1997 DAVID C. TREINEN David C. Treinen Senior Vice President - Finance and Administration (Principal Financial Officer) Date November 12, 1997 MITCHELL K. FOGELMAN Mitchell K. Fogelman Vice President - Controller (Principal Accounting Officer) - 9 - EX-27 2 FDS FOR THREE MONTHS ENDED SEPTEMBER 30, 1997
5 1,000 3-MOS JUN-30-1998 SEP-30-1997 7,968 0 37,694 0 40,633 90,036 100,831 54,422 147,127 22,630 0 0 0 8,643 111,191 147,127 59,509 59,509 41,721 54,798 (13) 210 35 4,724 2,020 2,704 0 0 0 2,704 .63 0
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