-----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, Dh08cMbrT/ZfFRrJQhG7tn1esG57wUeXccBgq2u1tCuplRpHENwTNDJ2V0vK2s9R jAUuz5yfXFe9p+GPapswHA== 0000051103-99-000003.txt : 19990923 0000051103-99-000003.hdr.sgml : 19990923 ACCESSION NUMBER: 0000051103-99-000003 CONFORMED SUBMISSION TYPE: 10-K405 PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19990630 FILED AS OF DATE: 19990922 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-K405 SEC ACT: SEC FILE NUMBER: 001-07256 FILM NUMBER: 99714814 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-K405 1 FORM 10-K FOR FISCAL YEAR ENDED JUNE 30, 1999 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K ANNUAL REPORT PURSUANT TO SECTION 13 OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended June 30, 1999 Commission File Number 1-7256 INTERNATIONAL ALUMINUM CORPORATION (Exact name of Registrant as specified in its charter) California 95-2385235 (Incorporation) (I.R.S. Employer No.) 767 Monterey Pass Road Monterey Park, California 91754 (323) 264-1670 (Principal executive office) Securities registered pursuant to Section 12(b) of the Act: Title of Each Class Names of Exchanges on Which Registered Common Stock New York Stock Exchange ($1.00 Par Value) Pacific Exchange Securities registered pursuant to Section 12(g) of the Act: 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 by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of Registrant's knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. X At September 8, 1999 there were 4,291,794 shares of Registrant's Common Stock outstanding. The aggregate market value of shares held by non-affiliates was $64,431,235 based on the New York Stock Exchange composite closing price on that date. DOCUMENTS INCORPORATED BY REFERENCE Registrant's Annual Report to Shareholders for fiscal year ended June 30, 1999 is incorporated by reference into Parts I and II. Registrant's Proxy Statement dated September 27, 1999 for the Annual Meeting of Shareholders to be held on October 28, 1999 is incorporated by reference, other than the performance graph and Compensation Committee Report, into Part III. PART I ITEM 1. BUSINESS a. GENERAL DEVELOPMENT OF BUSINESS International Aluminum Corporation is an integrated building products manufacturer of diversified lines of quality aluminum, vinyl, wood and glass products. The Company was incorporated in California in 1963 as successor to an aluminum fabricating business begun in 1957 and maintains its executive offices at 767 Monterey Pass Road, Monterey Park, California 91754. The Company's telephone number is (323) 264-1670. Reference to the "Registrant", "International Aluminum Corporation" or the "Company" includes International Aluminum Corporation and its subsidiaries unless the context indicates otherwise. b. INDUSTRY SEGMENTS, LINES OF BUSINESS AND CLASSES OF PRODUCTS This information is included on pages 4 and 15 of the Registrant's 1999 Annual Report to Shareholders and is hereby incorporated by reference. c. NARRATIVE DESCRIPTION OF BUSINESS Processes and Products Residential Residential products are fabricated from aluminum, vinyl and wood into a broad line of horizontal sliding windows, vertical sliding windows, casement windows, garden windows, bay and bow windows, special configuration windows, louvre windows, patio doors, tub enclosures, shower doors, wardrobe mirror doors and related products. These products are used in new residential construction and in remodeling, home improvement and replacement. Commercial Commercial products are fabricated from aluminum into curtain walls, window walls, storefront framing, entrance doors and frames for exterior applications and officefronts, office partitions, doors and frames for interior applications. These products are utilized in varying combinations to produce systems used for office and commercial construction, remodeling and tenant improvement applications. - 1 - Aluminum Extrusion In the extrusion process, heated aluminum billets are hydraulically forced through steel dies to produce a piece of metal of the desired cross-sectional shape and length. The extrusions are then cut and, when requested, anodized or painted in a variety of finishes in the Company's anodizing and painting departments. Aluminum extrusions produced by the Company are used in fabricating substantially all of its other aluminum products. In addition, during fiscal 1999 approximately 49% of the extrusions produced were sold to users in its own or other industries, including manufacturers of fixtures, electronic equipment, automotive products, sailboats, skylights and truck bodies. The Company furnishes design services to assist its customers in developing or better utilizing custom extrusions. Glass This product group shapes, bends, bevels, etches, polishes and tempers bulk flat glass. The fabricated glass is primarily utilized in the Company's store fixturing products and in its glass furniture lines. Glass is also processed to customer specifications for incorporation into their end products, which include residential, patio and office furniture, truck and recreational vehicle windows, light fixtures and appliances. Sales and Distribution The Company markets its residential products primarily to mass merchandisers, independent dealers and distributors, with whom the Company has no long-term contracts. Commercial building products are marketed primarily to glazing and tenant improvement contractors. Aluminum extrusions are marketed principally by direct sales to other manufacturers. The Company's glass products are marketed to manufacturers, distributors and retailers. Each of the Company's subsidiaries has its own administrative and sales organizations. Sales are made primarily in North America. No customer accounted for more than 5% of net sales in 1999, and no material part of the business is dependent upon a single customer or a few customers, the loss of any one or more of whom would have a materially adverse effect on the business of the Company. The Company does business on a current basis and has no significant backlog of unfilled firm orders. - 2 - Materials The Company purchases its aluminum ingot requirements from primary aluminum producers or spot metal brokers. Although increased worldwide demand produces periods of tight supply of aluminum ingot and scrap, the Company has had satisfactory experience to date in obtaining sufficient raw materials to meet its requirements and does not anticipate material shortages which would significantly hamper its operations. Flat glass is purchased from domestic glass manufacturers. The Company has had satisfactory experience to date in obtaining sufficient glass to meet its requirements. The Company produces the aluminum extrusions used in the products it manufactures and sells. Vinyl, wood, hardware, fasteners and screening are purchased from outside sources. Seasonality Sales of products designed for residential and commercial applications are subject to cyclical swings in new construction and seasonal fluctuations due to reduced construction activity in some marketing areas during the winter months (second and third quarters). Working Capital To maintain an adequate supply of aluminum to meet customer delivery requirements and to assure itself of a continuous allotment of materials from its suppliers, the Company at times carries a significant inventory of aluminum ingot. Depending on price and availability, bulk quantities of ingot are purchased from either primary aluminum producers or from spot metal brokers. The Company does not believe there are any abnormal working capital requirements associated with any of its product groups as merchandise is normally produced for specific customer orders or shipped from inventory and as a general practice extended payment terms are not granted to customers. Patents The Company has no material patents, either issued or pending, and is not a party to any significant licensing agreements. - 3 - Competition and Risk The business of International Aluminum is highly competitive. Competition in all product lines is on the basis of price, service and product quality. The manner and extent of such competition depends on the product being marketed and the relevant marketing area. In selling its residential products to mass merchandisers, dealers and distributors, the Company faces competition primarily from numerous fabricators. Several of the Company's major competitors in selling commercial products and aluminum extrusions are substantially larger, more diversified and have greater resources than the Company. The Company anticipates that expansion of its product lines may result in its competing with certain of its present customers. While the Company cannot accurately predict the effect, if any, that such development will have on its business, the Company anticipates no material adverse effect. Since a substantial portion of the Company's business is connected with residential and commercial building construction, any significant decrease in new or remodeling construction could adversely affect revenues. Experience has shown that high interest rates for construction financing and residential mortgage and home improvement loans may adversely affect revenues. Environmental Controls The Company's domestic aluminum extrusion, anodizing, painting and manufacturing facilities are subject to water and air pollution control standards mandated by federal, state and local law. While the Company anticipates no material capital expenditures to meet established environmental quality control standards, there can be no assurance that more stringent standards will not be established which might require such expenditures. Employees As of June 30, 1999, the Company had approximately 2,200 full-time employees. d. FINANCIAL INFORMATION ABOUT FOREIGN AND DOMESTIC OPERATIONS The information concerning income before taxes of foreign and domestic operations for fiscal years 1999, 1998 and 1997 is set forth in Note 10 to the consolidated financial statements included on page 14 of the Company's 1999 Annual Report incorporated herein by reference. Other related information regarding foreign operations is not significant for disclosure. - 4 - ITEM 2. PROPERTIES The following table sets forth information concerning the location, size and use of the Company's present facilities:
Square Location Feet (A) Use Alhambra, CA 221,000 Aluminum extrusions, foundry & finishing Waxahachie, TX 272,000 Aluminum extrusions, foundry & finishing South Gate, CA 189,000 Residential products Hayward, CA 103,000 Residential products Phoenix, AR 100,000 Residential products Moreno Valley, CA 67,000 Residential products Denver, CO 29,000(L) Residential products Vernon, CA 134,000 Commercial products Hayward, CA 14,000(L) Commercial products Las Vegas, NV 12,000(L) Commercial products Bedford Park, IL 81,000 Commercial products Baltimore, MD 16,000(L) Commercial products Boston, MA 21,000(L) Commercial products Detroit, MI 12,000(L) Commercial products Waxahachie, TX 219,000 Commercial products Denver, CO 16,000(L) Commercial products St. Louis, MO 14,000(L) Commercial products Dallas, TX 53,000(L) Commercial products Houston, TX 57,000 Commercial products Rock Hill, SC 74,000 Commercial products Orlando, FL 14,000(L) Commercial products Atlanta, GA 18,000(L) Commercial products Langley, B.C., Canada 63,000 Commercial products Fontana, CA 62,000 Glass fabrication Rock Hill, SC 84,000 Glass fabrication Monterey Park, CA 19,000(L) Executive offices ______________________ (A) Includes manufacturing, warehouse and office space; excludes construction in process, parking and yard storage space. (L) Indicates leased premises. Of the 1,964,000 square feet exhibited above, 1,726,000 square feet are owned by the Company. The balance of 238,000 square feet is leased under agreements expiring at various dates. The Company believes that its facilities are adequate for anticipated levels of operations.
- 5 - ITEM 3. LEGAL PROCEEDINGS The Company has litigation pending, both offensive and defensive, arising from the conduct of its business, none of which are expected to have any material effect on the Company's financial position. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS No matters have been submitted to a vote of security holders which are required to be reported under the instructions to this item. - 6 - PART II ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED STOCKHOLDER MATTERS The market and dividend information is included on pages 6 and 16 of the Company's 1999 Annual Report to Shareholders and is incorporated herein by reference. There are no restrictions of future cash dividends. There were approximately 400 shareholders of record of the Company's common stock at June 30, 1999. ITEM 6. SELECTED FINANCIAL DATA Selected financial data pertaining to the Company for the last five years is set forth on page 4 of the Company's 1999 Annual Report to Shareholders and is incorporated herein by reference. ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS This information is set forth on pages 2 through 6 of the Company's 1999 Annual Report to Shareholders and is incorporated herein by reference. ITEM 7A. DISCLOSURES ABOUT MARKET RISK The Company has no market risk sensitive instruments which are required to be reported under the instructions to this item. ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA See Part IV, Item 14. ITEM 9. DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE There have been no disagreements which are required to be reported under the instructions to this item. PART III The information required under Part III is contained in the Company's Proxy Statement for the Annual Meeting of Shareholders to be held October 28, 1999, which information is incorporated herein by reference. - 7 - PART IV ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K Page (a) 1. Financial Statements Consolidated Financial Statements (See Note): Balance sheets - June 30, 1999 and 1998 Statements for the three years ended June 30, 1999 - Income Shareholders' equity Cash flows Notes to consolidated financial statements 2. Financial Statement Schedules Report of Independent Accountants on Financial Statement Schedules F-1 Schedule for the three years ended June 30, 1999 - II Valuation and qualifying accounts F-2 3. Exhibits 3. Articles of incorporation and by-laws. This information is set forth as Exhibits 2.2 and 2.3 to the September 9, 1977 Registration Statement on Form S-7, and was amended by Proxy Statements dated September 26, 1978 and September 21, 1988 furnished to shareholders in connection with the related Annual Meeting of Shareholders held on October 26, 1978 and October 27, 1988, respectively. These documents were filed by the Registrant with the Securities and Exchange Commission and are incorporated herein by reference. 4. Instruments defining the rights of security holders, including the indentures. This information is set forth on page 10 of the August 1, 1968 Registration Statement on Form S-1, as amended, filed by the Registrant with the Securities and Exchange Commission and is incorporated herein by reference. 13. Annual Report to Shareholders. 22. Subsidiaries of the registrant. 23. Consent of PricewaterhouseCoopers LLP (on page F-1 herein). 27. Financial Data Schedule. (b) No reports on Form 8-K were required to be filed during the last quarter of 1999. NOTE: The consolidated financial statements referred to above are included in the 1999 Annual Report to Shareholders and are incorporated herein by reference. - 8 - SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereto duly authorized. INTERNATIONAL ALUMINUM CORPORATION Date: September 21, 1999 By: DAVID C. TREINEN David C. Treinen Senior Vice President-Finance and Administration; Secretary and Chief Financial Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.
Signature Title Date CORNELIUS C. VANDERSTAR Chairman of the Board and September 21, 1999 Cornelius C. Vanderstar Chief Executive Officer J. D. WILLIAMS President and Chief September 21, 1999 J. D. Williams Operating Officer DAVID C. TREINEN Director; Senior Vice September 21, 1999 David C. Treinen President-Finance and Administration; Secretary and Chief Financial Officer MITCHELL K. FOGELMAN Vice President-Controller September 21, 1999 Mitchell K. Fogelman and Chief Accounting Officer JOHN P. CUNNINGHAM Director September 21, 1999 John P. Cunningham HUGH E. CURRAN Director September 21, 1999 Hugh E. Curran JOEL F. McINTYRE Director September 21, 1999 Joel F. McIntyre ALEXANDER VAN DE POL Director September 21, 1999 Alexander van de Pol DONALD J. WILLFONG Director September 21, 1999 Donald J. Willfong
- 9 - REPORT OF INDEPENDENT ACCOUNTANTS ON FINANCIAL STATEMENT SCHEDULE To the Board of Directors of International Aluminum Corporation Our audits of the consolidated financial statements referred to in our report dated August 19, 1999 appearing in the 1999 Annual Report to Shareholders of International Aluminum Corporation (which report and consolidated financial statements are incorporated by reference in this Annual Report on Form 10-K) also included an audit of the Financial Statement Schedule listed in Item 14(a)2 of this Form 10-K. In our opinion, this Financial Statement Schedule presents fairly, in all material respects, the information set forth therein when read in conjunction with the related consolidated financial statements. PRICEWATERHOUSECOOPERS LLP Los Angeles, California August 19, 1999 Exhibit 23 CONSENT OF INDEPENDENT ACCOUNTANTS We hereby consent to the incorporation by reference in the Registration Statement on Form S-8 (No. 33-57109) of International Aluminum Corporation of our report dated August 19, 1999 relating to the financial statements, which appears in the Annual Report to Shareholders, which is incorporated in this Annual Report on Form 10-K. We also consent to the incorporation by reference of our report dated August 19, 1999 relating to the financial statement schedule which appears in this Form 10-K. PRICEWATERHOUSECOOPERS LLP Los Angeles, California September 21, 1999 F-1 INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS For The Three Years Ended June 30, 1999
Balance at Amounts Amounts Balance at Beginning Charged Written End Description of Year to Income Off of Year Reserves for doubtful accounts 1999 $697,000 $414,000 $376,000 $735,000 1998 614,000 484,000 401,000 697,000 1997 571,000 548,000 505,000 614,000
F-2 INTERNATIONAL ALUMINUM CORPORATION SUBSIDIARIES The following is a list of the significant subsidiaries of the Registrant and the jurisdiction under which each is organized. The Company owns 100 percent of the voting securities of each such subsidiary. Jurisdiction of Name of Subsidiary Organization International Window Corporation California International Extrusion Corporation California United States Aluminum Corporation California General Window Corporation* California International California Glass Corporation California United States Aluminum Corporation-Illinois California International Window-Arizona, Inc. California United States Aluminum Corporation-Texas Texas International Extrusion Corporation-Texas California United States Aluminum Corporation-Carolina California International Carolina Glass Corporation California Maestro Products, Inc. California United States Aluminum of Canada, Ltd. Canada International Window-Colorado, Inc. Colorado ______________________________________________ * dba International Window-Northern California Exhibit 22 EX-13 2 ANNUAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 1999 INTERNATIONAL ALUMINUM CORPORATION 1999 Annual Report COMPANY PROFILE INTERNATIONAL ALUMINUM CORPORATION is an integrated building products manufacturer of diversified lines of quality aluminum, vinyl, wood and glass products. The Company is headquartered in Monterey Park, California and has approximately 2,200 employees. Operations are conducted through fourteen North American subsidiaries. PRODUCTS BY SEGMENT COMMERCIAL - Curtain walls, window walls, storefront framing, entrance doors and frames, interior officefronts, office partitions and interior doors and frames for the commercial building and tenant improvement markets. RESIDENTIAL - Expansive lines of windows and patio doors manufactured from vinyl, aluminum or wood, in addition to aluminum tub and shower enclosures and wardrobe mirror doors, for the residential building and remodeling markets. ALUMINUM EXTRUSION - Mill finish, anodized, painted and fabricated aluminum extrusions. GLASS - Innovative store fixturing products encompassing tempered glass, wood and metal. Proprietary showcase designs and distinctive lines of glass furniture. INTERNET WEBSITE - Internet users can access information on products of International Aluminum Corporation subsidiaries at www.intlalum.com. CONTENTS Financial Highlights Letter to Shareholders Selected Financial Data Management's Discussion and Analysis of Financial Condition and Results of Operations Quarterly Financial Data Report of Independent Accountants Consolidated Financial Statements Notes to Consolidated Financial Statements Corporate Information Subsidiaries By Segment FINANCIAL HIGHLIGHTS Fiscal Years Ended June 30, 1999, 1998 and 1997
1999 1998 1997 Operating Results: Net sales $244,606,000 $225,789,000 $224,026,000 Income from operations 16,296,000 17,783,000 10,145,000 Net income 10,339,000 12,122,000 5,938,000 Financial Data: Net cash provided by operating activities $ 8,715,000 $ 18,136,000 $ 11,755,000 Capital expenditures including acquisitions 16,359,000 6,837,000 14,479,000 Working capital 69,030,000 72,170,000 65,820,000 Long-term debt 0 0 0 Shareholders' equity 128,701,000 123,449,000 118,240,000 Per Share Data: Net income - Basic $ 2.41 $ 2.83 $ 1.39 Net income - Diluted 2.41 2.82 1.39 Dividends declared 1.20 1.15 1.00 Book value at yearend 29.99 28.77 27.71 Market price at yearend 27.56 31.00 26.50
During the past year, John P. Cunningham retired from active management of the Company. He has served as the President since 1972 and we would like to thank him for his many years of dedicated service and look forward to his continuing involvement as a member of the Board of Directors. TO OUR SHAREHOLDERS With an increase in sales of 8 percent, net income, excluding the 1998 gain on the sale of a foreign subsidiary, declined by 6 percent. This year we had to completely rebuild the foundry at our extrusion operation in California. During the foundry renovation, scrap normally converted into billet internally was converted by an outside vendor, significantly increasing unit material cost. Profitability was also hampered by severe mechanical breakdown of equipment at our extrusion plants in both California and Texas impacting sales for both the Extrusion and Commercial Products Groups. Additional increases in costs were incurred working overtime to keep the available presses running longer hours. It should be obvious that your management is not pleased with these results and we are doing everything in our power to re-establish a pattern of consistent, profitable growth. In order to achieve this, some major changes have been made at the corporate office and in the management of our core business units. The position of President and Chief Operating Officer of the Company is now filled by Mr. J.D. Williams who had an excellent track record with the Company while in charge of our Commercial Products Group. Mr. Williams has appointed new group operating executives to head each core business group and has empowered them to manage their respective product groups as they deem necessary to meet the goals as set forth in their group business plans which are orientated toward growth. The corporation is committed to becoming a low cost producer by implementing modern lean type manufacturing concepts throughout each operation. Major capital expenditures will be required at each subsidiary for modernization upgrades which will increase production capacity and improve quality. Our Research and Development Department has developed new products for the Commercial and Residential Products Groups and we expect to see favorable results as these new products are introduced in the market. While we are committed to improving existing operations, we are also focusing on products within our core business units which will provide the best return and position the corporation for growth. We are actively pursuing additional growth through acquisitions of companies manufacturing products complementing those currently marketed by our existing subsidiaries. Preliminary discussions are already in progress with several of these companies. The company s financial health continues to be excellent with Shareholders equity rising to $128.7 million or $29.99 per share. The balance sheet continues to be very strong with total assets at yearend increasing to $153.7 million with no long-term debt. Working capital at June 30 was $69 million and our current ratio was 4.4 to 1. Capital expenditures for next year are currently projected to be around $18 million with a significant portion for the continuation of production equipment upgrades at the two extrusion facilities. As we embrace the changes previously discussed, we embrace the opportunity for renewed growth and better competitiveness. CORNELIUS C. VANDERSTAR J. D. WILLIAMS Cornelius C. Vanderstar J. D. Williams Chairman Of The Board President Chief Executive Officer Chief Operating Officer August 25, 1999 SELECTED FINANCIAL DATA
Year Ended June 30 1999 1998 1997 1996 1995 Sales by segment Commercial $121,192,000 $109,188,000 $102,379,000 $ 93,749,000 $ 83,444,000 Residential 52,936,000 49,458,000 54,668,000 55,931,000 56,666,000 Aluminum Extrusion 55,213,000 50,426,000 51,957,000 49,462,000 53,747,000 Glass 15,265,000 16,717,000 15,022,000 16,431,000 17,049,000 Total net sales $244,606,000 $225,789,000 $224,026,000 $215,573,000 $210,906,000 Earnings Gross profit $73,397,000 $69,112,000 $62,754,000 $59,916,000 $67,964,000 Net income 10,339,000 12,122,000 5,938,000 7,597,000 13,502,000 Per share: Net income - Basic $2.41 $2.83 $1.39 $1.78 $3.18 Net income - Diluted 2.41 2.82 1.39 1.78 3.16 Dividends declared 1.20 1.15 1.00 1.00 1.00 Financial Data at Yearend Working capital $ 69,030,000 $ 72,170,000 $ 65,820,000 $ 71,896,000 $ 68,395,000 Total assets 153,693,000 147,298,000 145,041,000 141,843,000 138,104,000 Long-term debt 542,000 Shareholders' equity 128,701,000 123,449,000 118,240,000 116,882,000 113,771,000
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Significant Changes in Results of Operations 1999 vs. 1998 Net sales for fiscal 1999 increased by $18,817,000 or 8.3% from net sales of fiscal 1998. The increase primarily consists of a $12,004,000 or 11.0% increase in sales of commercial products, reflective of continued strong demand for the Company's exterior products throughout most of its marketing regions. Sales of residential products increased $3,478,000 or 7.0% attributable to the strong California housing market. Gross profit decreased to 30.0% of sales in 1999 as compared to 30.6% in 1998. The decrease is largely attributable to higher labor and overhead unit costs incurred at our extrusion operations resulting from equipment failures and mechanical breakdowns coupled with reduced selling prices. Selling, general and administrative expenses were 23.3% of sales in 1999 as compared with 22.7% in 1998. The $5,772,000 increase in current year expense primarily reflects costs incurred in support of the increased sales volume. The other component of the change relates to recruiting and relocation costs associated with realigning and enlarging operating group management teams. The decrease in interest income relates to the significantly decreased level of funds available for investment during the current year due primarily to increased capital expenditures. 1998 vs. 1997 Net sales for fiscal 1998 increased by $1,763,000 or 0.8% from net sales of fiscal 1997. The sale of the Company's Dutch subsidiary, Eland-Brandt BV during the second quarter significantly impacts period comparisons. The exclusion of Eland-Brandt BV from the comparison shows an increase of $11,120,000 or 5.2% for the year. The sales from ongoing operations primarily consist of a $6,808,000 or 6.7% increase in sales of commercial products resulting from increased demand for interior and exterior commercial products in the southern region of the United States. Gross profit increased to 30.6% of sales in 1998 as compared to 28.0% in 1997. This increase is primarily attributable to increased margins in the Aluminum Extrusion Group resulting from labor and overhead efficiencies attained through higher production volume. Also factors were the prior year inventory and asset writedowns related to the purchase of Altura and the prior year additional workers compensation insurance expense related to a major industrial accident during that year. Selling, general and administrative expenses were 22.7% of sales in 1998 as compared with 23.5% in 1997. Expenses in the current year have decreased by $1,280,000, which reflects the elimination of costs due to the sale of Eland-Brandt BV. Other components of the change include increased selling and marketing costs during the current year and decreased costs related to certain nonrecurring charges in the prior year. The increase in interest income relates to the significantly increased level of funds available for investment primarily resulting from the cash provided by operations. Inflation Because the Company's products are predominately made-to-order, the impact of inflation on operating results is typically not significant. The Company attempts to alleviate inflationary pressures by increasing selling prices to help offset rising costs (subject to competitive conditions), increasing productivity and improving design. Liquidity and Capital Resources Working capital at June 30, 1999 was $69,030,000 compared to $72,170,000 at June 30, 1998 and $65,820,000 at June 30, 1997. The ratio of current assets to current liabilities was 4.4 at the end of 1999 compared to 4.7 at the end of 1998 and 3.9 at the end of 1997. The Company continues to be in excellent position to meet its short- term operating and discretionary cash requirements. Funds in excess of current operating requirements are invested in short-term interest- bearing instruments. Capital expenditures for property, plant and equipment of approximately $15,059,000 in 1999, $6,837,000 in 1998 and $7,508,000 in 1997 were financed through internal cash flow and cash reserves. Additional cash flows include the 1999 fiscal year expenditure of $1,300,000 for an acquisition (see Note 9), the 1998 fiscal year receipt of $1,021,000 from the sale of a subsidiary and the 1997 fiscal year expenditure of $6,971,000 for two acquisitions. In addition to the normal annual expenditures for replacement items, the Company projects capital expenditures for fiscal 2000 of $18,000,000 for scheduled expansion of production capacity. The Company anticipates financing these expenditures through internal cash flow. The Company had $15,000,000 in available credit at the end of 1999 under a short-term borrowing arrangement with a bank. The Company's financial condition remains strong. The Company believes that its cash, other liquid assets, operating cash flows and borrowing capacity, taken together, provide more than adequate resources to fund ongoing operating requirements and future capital expenditures related to the expansion of existing businesses. Current and Pending Accounting Changes The Financial Accounting Standards Board has issued a new standard affecting the accounting for derivative instruments and hedging activities. This standard will not change our operating results, financial condition or disclosures. Year 2000 The Company utilizes software and related technologies throughout its business that will be affected by the date change to the year 2000. The Company performed a review of the software it uses in its business for year 2000 compliance. The Company has completed the migration to compliant releases of its financial and human resources software. The Company has substantially completed the implementation of new compliant operational software which will also enhance manufacturing information and customer service. The Company has targeted year 2000 compliance by no later than October 1999, and thus has not developed contingency plans. The consequences of non-compliance (although the Company does not anticipate such) by the Company, its customers or its suppliers could have a material adverse impact on the Company's operations. The Company will continue to incur expenses related to these efforts; however, such expenses are not expected to have a material impact on the Company's results of operations. Forward-Looking Information This annual report contains forward-looking statements with respect to the financial condition, 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. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date the statement was made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. QUARTERLY FINANCIAL DATA (UNAUDITED) For the years ended June 30, 1999 and 1998
First Second Third Fourth Quarter Quarter Quarter Quarter 1999 Net sales $62,150,000 $61,269,000 $59,303,000 $61,884,000 Gross profit 19,323,000 18,587,000 17,017,000 18,470,000 Net income 3,409,000 2,790,000 1,847,000 2,293,000 Earnings per share - Basic .79 .65 .43 .53 Earnings per share - Diluted .79 .65 .43 .53 Dividends declared .30 .30 .30 .30 Stock price - High 31.19 30.06 30.63 29.00 Stock price - Low 28.19 26.69 24.88 24.75 1998 Net sales $59,509,000 $55,659,000 $52,988,000 $57,633,000 Gross profit 17,788,000 17,445,000 16,016,000 17,863,000 Net income 2,704,000 3,857,000 2,277,000 3,284,000 Earnings per share - Basic .63 .90 .53 .77 Earnings per share - Diluted .63 .90 .53 .76 Dividends declared .25 .30 .30 .30 Stock price - High 28.00 31.94 36.00 35.50 Stock price - Low 25.63 27.38 30.63 31.00
REPORT OF INDEPENDENT ACCOUNTANTS To the Board of Directors and Shareholders of International Aluminum Corporation In our opinion, the accompanying consolidated balance sheets and the related consolidated statements of income, cash flows and shareholders' equity present fairly, in all material respects, the financial position of International Aluminum Corporation and its subsidiaries at June 30, 1999 and 1998, and the results of their operations and their cash flows for each of the three years in the period ended June 30, 1999, in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Company's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards, which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above. PRICEWATERHOUSECOOPERS LLP PricewaterhouseCoopers LLP Los Angeles, California August 19, 1999 CONSOLIDATED STATEMENTS OF INCOME For the years ended June 30, 1999, 1998 and 1997
1999 1998 1997 Net sales $244,606,000 $225,789,000 $224,026,000 Cost of sales 171,209,000 156,677,000 161,272,000 Gross profit 73,397,000 69,112,000 62,754,000 Selling, general and administrative expenses 57,101,000 51,329,000 52,609,000 Income from operations 16,296,000 17,783,000 10,145,000 Gain on sale of subsidiary 1,235,000 Interest income 213,000 343,000 198,000 Interest expense (130,000) (79,000) (115,000) Income before income taxes 16,379,000 19,282,000 10,228,000 Provision for income taxes 6,040,000 7,160,000 4,290,000 Net income $ 10,339,000 $ 12,122,000 $ 5,938,000 Earnings per share - Basic $2.41 $2.83 $1.39 Earnings per share - Diluted $2.41 $2.82 $1.39 See accompanying notes to consolidated financial statements.
CONSOLIDATED BALANCE SHEETS June 30, 1999 and 1998
Assets 1999 1998 Current assets: Cash and cash equivalents $ 2,269,000 $ 14,320,000 Accounts receivable, less reserve of $735,000 in 1999 and $697,000 in 1998 39,371,000 34,850,000 Inventories 41,576,000 38,135,000 Prepaid expenses 4,909,000 2,827,000 Future income tax benefits 1,492,000 1,521,000 Total current assets 89,617,000 91,653,000 Property, plant and equipment, at cost 109,907,000 96,692,000 Accumulated depreciation (55,591,000) (51,316,000) 54,316,000 45,376,000 Other assets: Costs in excess of net assets of purchased businesses 9,760,000 9,752,000 Other 517,000 9,760,000 10,269,000 $153,693,000 $147,298,000 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 8,079,000 $ 7,932,000 Accrued liabilities 12,415,000 10,921,000 Income taxes payable 93,000 630,000 Total current liabilities 20,587,000 19,483,000 Deferred income taxes 4,405,000 4,366,000 Total liabilities 24,992,000 23,849,000 Commitments (Note 5) Shareholders' equity: Common stock 4,765,000 4,764,000 Paid-in capital 4,123,000 4,087,000 Retained earnings 119,796,000 114,608,000 Accumulated other comprehensive income 17,000 (10,000) Total shareholders' equity 128,701,000 123,449,000 $153,693,000 $147,298,000 See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF CASH FLOWS For the years ended June 30, 1999, 1998 and 1997
1999 1998 1997 Cash flows from operating activities: Net income $10,339,000 $12,122,000 $ 5,938,000 Adjustments for noncash transactions: Depreciation and amortization 6,503,000 5,956,000 5,596,000 Change in deferred income taxes 68,000 (228,000) 86,000 Gain on disposition of business (1,235,000) Net loss on disposition of assets 413,000 Changes in assets and liabilities: Receivables (4,315,000) (1,316,000) 176,000 Inventories (2,943,000) 2,971,000 (1,095,000) Prepaid expenses and other (1,540,000) (1,153,000) 910,000 Accounts payable (312,000) 1,455,000 (1,288,000) Accrued liabilities 1,452,000 (182,000) 926,000 Income taxes payable (537,000) (254,000) 93,000 Net cash provided by operating activities 8,715,000 18,136,000 11,755,000 Cash flows from investing activities: Capital expenditures (15,059,000) (6,837,000) (7,508,000) Proceeds from sales of capital assets 707,000 136,000 625,000 Disposition (acquisition) of businesses (1,300,000) 1,021,000 (6,971,000) Net cash used in investing activities (15,652,000) (5,680,000) (13,854,000) Cash flows from financing activities: Repayment of long-term debt (542,000) Exercise of stock options 37,000 301,000 97,000 Dividends paid to shareholders (5,151,000) (4,929,000) (4,265,000) Net cash used in financing activities (5,114,000) (4,628,000) (4,710,000) Effect of exchange rate changes on cash 7,000 64,000 Net change in cash and cash equivalents (12,051,000) 7,835,000 (6,745,000) Cash and cash equivalents at beginning of year 14,320,000 6,485,000 13,230,000 Cash and cash equivalents at end of year $ 2,269,000 $14,320,000 $ 6,485,000 See accompanying notes to consolidated financial statements.
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY For the years ended June 30, 1999, 1998 and 1997
Accumulated Other Common Stock Paid-in Retained Comprehensive Shares Amount Capital Earnings Income Total Balance, June 30, 1996 4,260,180 $4,734,000 $3,719,000 $105,742,000 $ 2,687,000 $116,882,000 Net income 5,938,000 5,938,000 Translation adjustment (412,000) (412,000) Total comprehensive income 5,526,000 Exercise of stock options 7,239 7,000 90,000 97,000 Cash dividends (4,265,000) (4,265,000) Balance, June 30, 1997 4,267,419 4,741,000 3,809,000 107,415,000 2,275,000 118,240,000 Net income 12,122,000 12,122,000 Translation adjustment (2,285,000) (2,285,000) Total comprehensive income 9,837,000 Exercise of stock options 23,075 23,000 278,000 301,000 Cash dividends (4,929,000) (4,929,000) Balance, June 30, 1998 4,290,494 4,764,000 4,087,000 114,608,000 (10,000) 123,449,000 Net income 10,339,000 10,339,000 Translation adjustment 27,000 27,000 Total comprehensive income 10,366,000 Exercise of stock options 1,300 1,000 36,000 37,000 Cash dividends (5,151,000) (5,151,000) Balance, June 30, 1999 4,291,794 $4,765,000 $4,123,000 $119,796,000 $ 17,000 $128,701,000 See accompanying notes to consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Note 1. Significant Accounting Policies and Procedures Principles of Consolidation The consolidated financial statements include the accounts of International Aluminum Corporation (the Company) and its domestic and foreign subsidiaries. All significant intercompany transactions and accounts have been eliminated in consolidation. Certain reclassifications of prior year information were made to conform to the current presentation. Estimates and Assumptions The preparation of the consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Foreign Currency Translation Assets and liabilities of the Company's foreign subsidiary are translated into U.S. dollars at year-end exchange rates and revenues and expenses are translated at average rates prevailing during the year. Local currency is considered to be the functional currency. Translation adjustments are deferred into accumulated other comprehensive income, a separate component of shareholders' equity. Foreign currency transaction gains and losses are included in results of operations as incurred. Cash and Cash Equivalents Cash and cash equivalents include cash on hand and marketable securities with original maturities of three months or less. Depreciation and Amortization Depreciation and amortization are provided over the estimated useful lives of the assets or the remaining terms of the leases, whichever is shorter, using the straight-line method for financial reporting purposes and accelerated methods for tax purposes. The excess of the purchase price over the underlying book value of the companies acquired is classified as "Costs in excess of net assets of purchased businesses". The related amounts of $12,743,000 at June 30, 1999 and $12,169,000 at June 30, 1998 are being amortized using the straight-line method over periods of up to forty years. Accumulated amortization totalled $2,983,000 at June 30, 1999 and $2,418,000 at June 30, 1998. Long-Lived Assets Whenever events indicate that the carrying values of long-lived assets including any related goodwill may not be recoverable, the Company evaluates the carrying values of such assets using future undiscounted cash flows. Management believes that, as of June 30, 1999, the carrying values of such assets are appropriate. Note 2. Balance Sheet Components Inventories, at the Lower of FIFO Cost or Market 1999 1998 Raw materials $ 34,915,000 $31,016,000 Work in process 1,466,000 1,511,000 Finished goods 5,195,000 5,608,000 $ 41,576,000 $38,135,000 Property, Plant and Equipment, at Cost 1999 1998 Land $ 7,725,000 $ 7,857,000 Buildings and improvements 31,211,000 28,102,000 Machinery and equipment 67,891,000 60,415,000 Construction in process 3,080,000 318,000 $109,907,000 $96,692,000 Accrued Liabilities 1999 1998 Wages and compensated absences $ 5,149,000 $ 5,034,000 Taxes, other than income taxes 1,296,000 1,201,000 Insurance 1,106,000 1,170,000 Dividends 1,288,000 1,287,000 Other 3,576,000 2,229,000 $ 12,415,000 $10,921,000 Note 3. Statement of Cash Flows Cash payments for interest were $132,000 in 1999, $50,000 in 1998 and $99,000 in 1997. Cash payments for income taxes were $6,701,000 in 1999, $7,726,000 in 1998 and $4,200,000 in 1997. A $530,000 long-term note received in conjunction with the sale of an idle facility during 1997 was collected during 1999. Note 4. Short-Term Debt and Line of Credit The Company has a loan agreement with a domestic bank providing for a $15,000,000 unsecured short-term line of credit at 55 basis points below the bank's prevailing prime interest rate (7.20 percent at June 30, 1999). There was no amount outstanding under the agreement at June 30, 1999. Note 5. Commitments The Company is committed under real property lease agreements expiring at various dates to 2002. Certain of the leases have renewal options for periods up to five years and others provide for rent revisions at various dates. Under the leases the Company is obligated to pay property taxes, insurance and maintenance. All facility leases are classified as operating leases. Real property rental expense was $1,178,000 in 1999, $1,339,000 in 1998 and $1,172,000 in 1997. Real property rental commitments are $971,000 in 2000, $754,000 in 2001 and $456,000 in 2002. Note 6. Capital Stock The Company has 500,000 shares of preferred stock authorized, with a $10 par value, of which none is outstanding. There are 10,000,000 shares of common stock authorized, $1 par value, of which there were 4,291,794 shares outstanding at June 30, 1999 and 4,290,494 outstanding at June 30, 1998. Note 7. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of shares of common stock outstanding. Diluted earnings per share is computed by dividing net income by the weighted average common and potentially dilutive common equivalent shares outstanding determined as follows:
1999 1998 1997 Weighted average shares outstanding used to compute basic EPS 4,291,479 4,282,877 4,263,392 Incremental shares issuable upon the exercise of stock options 4,186 22,463 11,993 Shares used to compute diluted EPS 4,295,665 4,305,340 4,275,385 Incremental shares issuable upon the assumed exercise of outstanding stock options is computed using the average market price during the related period.
Note 8. Stock Options The Company grants stock options for the purchase of common stock to certain executive and managerial employees under the Company's 1991 Stock Option Plan. Options have an exercise price equal to the market price of the stock on the date of grant, a term of ten years and generally become exercisable over a five year period. The Company applies APB Opinion 25 and related Interpretations in accounting for the plan, accordingly, no compensation cost has been recognized for those stock options. There would have been no material change in reported net income and earnings per share had compensation cost been determined based on the fair value at the grant dates as prescribed by SFAS 123, "Accounting for Stock-Based Compensation". The transactions for shares under options for the three years ended June 30, 1999 were:
Outstanding Exercisable Number Of Weighted-Average Number Of Weighted-Average Shares Exercise Price Shares Exercise Price Outstanding, June 30, 1996 249,704 $26.20 35,704 $15.38 Exercised (8,629) 15.38 Forfeited (13,000) 28.00 Outstanding, June 30, 1997 228,075 26.50 67,275 22.92 Granted 66,000 31.23 Exercised (28,075) 15.83 Forfeited (18,000) 28.00 Outstanding, June 30, 1998 248,000 28.86 72,800 28.00 Exercised (1,300) 28.00 Forfeited (31,500) 28.85 Outstanding, June 30, 1999 215,200 28.87 105,720 28.35 Stock Option Summary at June 30, 1999: $28.00 (Life - 6.4 years) 156,700 28.00 93,100 28.00 $29.38-$31.56 (Life - 8.6 years) 58,500 31.19 11,700 31.19 Available for future grants 282,500
Note 9. Acquisitions and Divestitures During the current year, the Company formed a wholly-owned subsidiary named International Window-Colorado, Inc. (IW-CO) which became a member of the Residential Products Group. On October 1, 1998, IW-CO completed the $1,300,000 cash purchase of selected assets and liabilities of a Denver, Colorado residential window and door company. The estimated fair value of the net assets acquired was $726,000. The $574,000 excess of the purchase price over the estimated fair value of the net assets was allocated to goodwill and is being amortized on a straight line basis over 15 years. Proforma information has not been presented as it is not materially different from historical results. During the second quarter of the prior year, the Company sold it's Dutch subsidiary, Eland-Brandt BV, for approximately $1,021,000 in net cash proceeds. The sale generated a pretax gain of $1,235,000 (after-tax gain of $1,156,000 or $.27 per share), including the recognition of $2,145,000 of previously deferred cumulative translation adjustment. The gain had only a small income tax effect because the Company had not provided benefit for certain losses accumulated in prior years. The Company's consolidated financial statements include the results of Eland-Brandt BV through the date of disposal. Such amounts were not material in relation to the consolidated financial statements. Note 10. Income Taxes The components of income before United States and foreign income taxes are:
1999 1998 1997 Domestic $15,958,000 $19,935,000 $11,757,000 Foreign 421,000 (653,000) (1,529,000) $16,379,000 $19,282,000 $10,228,000 The provision for income taxes is comprised of the following: 1999 1998 1997 Current - Federal $ 5,338,000 $ 6,592,000 $ 3,901,000 State 634,000 796,000 303,000 Foreign 5,972,000 7,388,000 4,204,000 Deferred - Federal 63,000 (232,000) 102,000 State 5,000 4,000 (16,000) Foreign 68,000 (228,000) 86,000 $ 6,040,000 $ 7,160,000 $ 4,290,000 A reconciliation between the provisions for income taxes, computed by applying the Federal statutory rate to income before taxes, and the book provisions for income taxes follows: 1999 1998 1997 Taxes on book income at statutory rate $ 5,733,000 $ 6,749,000 $ 3,580,000 Increases (decreases) resulting from: State income taxes, net of Federal income tax benefit 415,000 520,000 183,000 Foreign (income) loss with no tax impact (147,000) (131,000) 535,000 Other 39,000 22,000 (8,000) Provision for income taxes $ 6,040,000 $ 7,160,000 $ 4,290,000 Deferred income taxes result from temporary differences in the recognition of income and expenses for tax and financial statement purposes. The tax effects of the significant temporary differences which comprise the deferred tax assets and liabilities at yearend are as follows: 1999 1998 Inventory $ 421,000 $ 452,000 Accrued liabilities 798,000 770,000 Other 273,000 299,000 Net deferred tax asset $ 1,492,000 $ 1,521,000 Property, plant and equipment $ 4,198,000 $ 4,145,000 Other 207,000 221,000 Net deferred tax liability $ 4,405,000 $ 4,366,000 No provision for U.S. taxes has been made for undistributed earnings of the foreign subsidiary since it is expected that the major portion of such earnings will continue to be reinvested for an indefinite period of time.
Note 11. Segment Information The Company's operations are organized and managed by product type. The Company operates in four segments of the building products industry: Commercial Products, Residential Products, Aluminum Extrusions and Glass Products. See the front cover for a description of the products of each segment and the back cover for a listing of the subsidiaries of each segment. The Company uses a portion of its aluminum extrusion production in its Commercial and Residential segments. Transfers are made at market prices. Accounting policies for the segments are the same as those described in Note 1. The Company evaluates performance based on operating income or loss before any allocation of corporate overhead, interest or taxes. The following is significant financial information by operating segment, reconciling to the Company's totals.
Sales Operating Income (In thousands) 1999 1998 1997 1999 1998 1997 Commercial $121,256 $109,394 $102,534 $ 13,171 $ 13,349 $ 12,665 Residential 53,157 49,851 54,928 2,802 2,930 1,476 Aluminum Extrusion 112,958 107,672 102,349 8,016 9,650 4,219 Glass 15,532 16,897 15,179 34 1,178 340 Total segments 302,903 283,814 274,990 24,023 27,107 18,700 Eliminations (58,297) (58,025) (50,964) 1,188 (952) (1,069) Corporate (8,915) (8,372) (7,486) Total $244,606 $225,789 $224,026 $ 16,296 $ 17,783 $ 10,145 Capital Expenditures Depreciation and Amortization (In thousands) 1999 1998 1997 1999 1998 1997 Commercial $ 2,388 $ 3,874 $ 3,657 $ 1,951 $ 1,714 $ 1,111 Residential 2,871 1,417 2,833 1,767 1,416 1,502 Aluminum Extrusion 6,370 488 496 1,811 1,731 1,775 Glass 2,542 485 243 326 356 379 Total segments 14,171 6,264 7,229 5,855 5,217 4,767 Corporate 888 573 279 648 739 829 Total $ 15,059 $ 6,837 $ 7,508 $ 6,503 $ 5,956 $ 5,596 Total Assets (In thousands) 1999 1998 Commercial $ 69,306 $ 67,899 Residential 28,874 25,493 Aluminum Extrusion 38,543 30,071 Glass 8,156 6,557 Total segments 144,879 130,020 Corporate 8,814 17,278 Total $153,693 $147,298
CORPORATE INFORMATION
DIRECTORS OFFICERS Cornelius C. Vanderstar J. D. Williams Chairman of the Board President David C. Treinen David C. Treinen Senior Vice President - Finance and John P. Cunningham Administration; Secretary Retired President of International Aluminum Corporation Ronald L. Rudy Senior Vice President - Operations Hugh E. Curran Retired Vice President - Sales of Mitchell K. Fogelman International Aluminum Corporation Vice President - Controller Joel F. McIntyre Stanley M. Kutch Attorney At Law Vice President - Information Systems Alexander van de Pol Ed Velasco Retired President and Chairman of the Vice President - Human Resources Board of Commonwealth Metals-Pacific Roland A. Young Donald J. Willfong Treasurer; Assistant Secretary Executive Vice President of Sutro & Co. STOCK TRANSFER AGENT AND REGISTRAR ELECTRONIC TRANSFER OF DIVIDENDS Continental Stock Transfer & Trust Company For information and forms, write to: 2 Broadway Corporate Secretary New York, NY 10004 International Aluminum Corporation (212) 509-4000 P. O. Box 6 Internet at www.continentalstock.com Monterey Park, CA 91754 STOCK EXCHANGE LISTING ANNUAL SHAREHOLDERS MEETING The Company's common stock (trading 2 p.m., Thursday, October 28, 1999 symbol: IAL) is listed on the New York International Aluminum Corporation Stock Exchange and is also traded on 767 Monterey Pass Road the Pacific Exchange Monterey Park, CA 91754
SUBSIDIARIES BY SEGMENT
COMMERCIAL RESIDENTIAL Richard D. Voreis Robert W. Raichle Executive Vice President Executive Vice President Commercial Products Group Residential Products Group United States Aluminum Corporation International Window Corporation Vernon, California South Gate, California Hayward, California Las Vegas, Nevada International Window-Northern California Hayward, California United States Aluminum Corporation-Illinois Bedford Park, Illinois International Window-Arizona, Inc. Baltimore, Maryland Phoenix, Arizona Boston, Massachusetts Detroit, Michigan Maestro Products, Inc. Moreno Valley, California United States Aluminum Corporation-Texas Waxahachie, Texas International Window-Colorado, Inc. Denver, Colorado Denver, Colorado St. Louis, Missouri Dallas, Texas Houston, Texas United States Aluminum Corporation-Carolina Rock Hill, South Carolina Orlando, Florida Atlanta, Georgia United States Aluminum Of Canada, Ltd. Langley, British Columbia, Canada ALUMINUM EXTRUSION GLASS John P. Collins Robert D. Carlson Executive Vice President Manager Aluminum Extrusion Group Glass Products Group International Extrusion Corporation International California Glass Corporation Alhambra, California Fontana, California International Extrusion Corporation-Texas International Carolina Glass Corporation Waxahachie, Texas Rock Hill, South Carolina
International Aluminum Corporation 767 Monterey Pass Road Monterey Park, California 91754 Tel: (323) 264-1670 Fax: (323) 266-3838 Web: www.intlalum.com EX-27 3 FINANCIAL DATA SCHEDULE - YEAR ENDED JUNE 30, 1999
5 1,000 YEAR JUN-30-1999 JUN-30-1999 2,269 0 39,371 0 41,576 89,617 109,907 55,591 153,693 20,587 0 0 0 8,888 119,813 153,693 244,606 244,606 171,209 171,209 0 414 130 16,379 6,040 10,339 0 0 0 10,339 2.41 2.41
-----END PRIVACY-ENHANCED MESSAGE-----