-----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, FRqE0xSBP/zXd53it20i56tY2513KYhoQWfcf2lzgElAw+FQ5wMBWf7tvhzmmeLN 4vDzws1pMG4FsXw+rUnhKA== 0000051103-98-000004.txt : 19981113 0000051103-98-000004.hdr.sgml : 19981113 ACCESSION NUMBER: 0000051103-98-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980930 FILED AS OF DATE: 19981112 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: 98745222 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, 1998 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, 1998 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 (323) 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 2, 1998 there were 4,291,494 shares of Common Stock outstanding. Page 1 of 8 Pages INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES INDEX Page PART I. Financial Information Consolidated Balance Sheets - September 30, 1998 and June 30, 1998 3 Consolidated Statements of Income - three months ended September 30, 1998 and 1997 4 Consolidated Statements of Cash Flows - three months ended September 30, 1998 and 1997 5 Notes to Consolidated Financial Statements 6 Management's Discussion and Analysis of Financial Condition and Results of Operations 7 Signatures 8 - 2 - PART I INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
Unaudited Audited Assets Sept. 30, 1998 June 30, 1998 Current assets: Cash and cash equivalents $ 12,392,000 $ 14,320,000 Accounts receivable, net 37,743,000 34,850,000 Inventories 38,997,000 38,135,000 Prepaid expenses and deposits 3,369,000 2,827,000 Future income tax benefits 1,521,000 1,521,000 Total current assets 94,022,000 91,653,000 Property, plant and equipment, at cost 100,146,000 96,692,000 Accumulated depreciation (52,314,000) (51,316,000) Net property, plant and equipment 47,832,000 45,376,000 Other assets: Costs in excess of net assets of purchased businesses 9,617,000 9,752,000 Other 514,000 517,000 Total other assets 10,131,000 10,269,000 $151,985,000 $147,298,000 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 9,752,000 $ 7,932,000 Accrued liabilities 9,888,000 10,921,000 Income taxes payable 2,493,000 630,000 Total current liabilities 22,133,000 19,483,000 Deferred income taxes 4,366,000 4,366,000 Total liabilities 26,499,000 23,849,000 Shareholders' equity 125,486,000 123,449,000 $151,985,000 $147,298,000 See accompanying notes to consolidated financial statements.
- 3 - Unaudited INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended September 30, 1998 1997 Net sales $62,150,000 $59,509,000 Costs and expenses: Cost of sales 42,827,000 41,721,000 Selling, general and administrative 13,870,000 13,077,000 Interest (income) expense, net (106,000) (13,000) Income before income taxes 5,559,000 4,724,000 Provision for income taxes 2,150,000 2,020,000 Net income $ 3,409,000 $ 2,704,000 Earnings per share: Basic $.79 $.63 Diluted $.79 $.63 Shares used to compute EPS: Basic 4,290,994 4,268,988 Diluted 4,298,807 4,278,064 Cash dividends per share $.30 $.25 See accompanying notes to consolidated financial statements.
- 4 - Unaudited INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended September 30, 1998 1997 Cash flows from operating activities: Net income $ 3,409,000 $ 2,704,000 Adjustments for noncash transactions: Depreciation and amortization 1,470,000 1,452,000 Changes in assets and liabilities: Receivables (2,893,000) (1,228,000) Inventories (862,000) 1,308,000 Prepaid expenses and other (539,000) (629,000) Accounts payable 1,820,000 1,064,000) Accrued liabilities and other (1,033,000) (1,803,000) Income taxes payable 1,863,000 1,454,000 Net cash provided by operating activities 3,235,000 4,322,000 Cash flows from investing activities: Capital expenditures (4,375,000) (1,894,000) Proceeds from sales of capital assets 471,000 23,000 Net cash used in investing activities (3,904,000) (1,871,000) Cash flows from financing activities: Dividends paid to shareholders (1,288,000) (1,068,000) Proceeds from exercises of stock options 29,000 93,000 Net cash used in financing activities (1,259,000) (975,000) Effect of exchange rate changes on cash 7,000 Net change in cash and cash equivalents (1,928,000) 1,483,000 Cash and cash equivalents at beginning of period 14,320,000 6,485,000 Cash and cash equivalents at end of period $12,392,000 $ 7,968,000 See accompanying notes to consolidated financial statements.
- 5 - 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, in all material respects, its financial position as of September 30, 1998 and June 30, 1998, and the results of operations and cash flows for the three month periods ended September 30, 1998 and 1997. The results of operations for the three month periods ended September 30, 1998 and 1997 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. This report contains forward-looking statements with respect to the financial conditions, results of operations and business of the Company. Such items are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in such statements. Comprehensive Income Comprehensive income, defined as net income and other comprehensive income, for the first quarters ended September 30, 1998 and 1997 was $3,296,000 and $2,569,000, respectively. Other comprehensive income includes foreign currency translation adjustments recorded directly in shareholders' equity. - 6 - 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 for the first quarter ended September 30, 1998 increased by $2,641,000 or 4.4% from the comparable quarter of the prior year. The sale of the Company's Dutch subsidiary, Eland-Brandt B.V., during the prior year significantly impacts the comparison which if excluded would show an increase of $4,624,000 or 8.0% in quarterly sales. This increase in sales from continuing operations is primarily composed of a $4,768,000 or 17.5% increase posted by the Commercial Products Group resulting from strong demand in the Southwestern and Midwestern regions of the country. The cost of sales as a percentage of net sales was 68.9% for the quarter ended September 30, 1998 as opposed to 70.1% for the comparable prior year period. This decrease is primarily attributable to the sale of Eland-Brandt which if excluded from the prior year would have resulted in a 69.2% cost of sales percentage. Selling, general and administrative expenses for the quarter were $793,000 higher than those of the comparable quarter of the prior year. This increase consists of a $467,000 or 3.6% increase in costs associated with the increased sales volume and a $326,000 increase in retrospective charges for prior years workers compensation insurance. 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, 1998 was 38.7% whereas the comparable quarter of fiscal year 1998 was 42.8%. This decrease is primarily attributable to the sale of Eland-Brandt which if excluded from the prior year would have resulted in a 39.7% effective tax rate. Liquidity and Capital Resources: Working capital decreased to $71,889,000 during the three months ended September 30, 1998, a decrease of $281,000 from June 30, 1998. The ratio of current assets to current liabilities is currently 4.2 as compared to 4.7 as of the beginning of the year. The Company's projected capital expenditures for fiscal 1999 and related financing remain unchanged from those described in the June 30, 1998 Annual Report. The Company's line of credit remains unchanged from that noted in the June 30, 1998 Annual Report to Shareholders. - 7 - 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, 1998 DAVID C. TREINEN David C. Treinen Senior Vice President - Finance and Administration (Principal Financial Officer) Date: November 12, 1998 MITCHELL K. FOGELMAN Mitchell K. Fogelman Vice President - Controller (Principal Accounting Officer) - 8 - EX-27 2 FDS FOR THREE MONTHS ENDED SEPTEMBER 30, 1998
5 1,000 3-MOS JUN-30-1999 SEP-30-1998 12,392 0 37,743 0 38,997 94,022 100,146 52,314 151,985 22,133 0 0 0 8,880 116,606 151,985 62,150 62,150 42,827 42,827 0 152 17 5,559 2,150 3,409 0 0 0 3,409 .79 .79
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