-----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, QizmxHfBAdMA+3odb+ka1W910IEMjzDjYtyvPrmQtIRxiBAJzZlY0STwlJRAThMs 68NfBFEgPdK1yabmK5ESNA== 0000051103-99-000004.txt : 19991115 0000051103-99-000004.hdr.sgml : 19991115 ACCESSION NUMBER: 0000051103-99-000004 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990930 FILED AS OF DATE: 19991112 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: 99749375 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, 1999 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, 1999 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 1, 1999 there were 4,291,794 shares of Common Stock outstanding. Page 1 of 10 Pages INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES INDEX Page PART I. Financial Information Consolidated Balance Sheets - September 30, 1999 and June 30, 1999 3 Consolidated Statements of Income - three months ended September 30, 1999 and 1998 4 Consolidated Statements of Cash Flows - three months ended September 30, 1999 and 1998 5 Notes to Consolidated Financial Statements 6 Management's Discussion and Analysis of Financial Condition and Results of Operations 8 Signatures 10 - 2 - PART I INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS
Unaudited Audited Assets Sept. 30, 1999 June 30, 1999 Current assets: Cash and cash equivalents $ 2,505,000 $ 2,269,000 Accounts receivable, net 41,893,000 39,371,000 Inventories 40,974,000 41,576,000 Prepaid expenses and deposits 4,176,000 4,909,000 Future income tax benefits 1,492,000 1,492,000 Total current assets 91,040,000 89,617,000 Property, plant and equipment, at cost 113,078,000 109,907,000 Accumulated depreciation (56,806,000) (55,591,000) Net property, plant and equipment 56,272,000 54,316,000 Other assets: Costs in excess of net assets of purchased businesses 9,645,000 9,760,000 $156,957,000 $153,693,000 Liabilities and Shareholders' Equity Current liabilities: Accounts payable $ 7,686,000 $ 8,079,000 Accrued liabilities 10,821,000 12,415,000 Advances payable to banks 3,257,000 Income taxes payable 1,430,000 93,000 Total current liabilities 23,194,000 20,587,000 Deferred income taxes 4,405,000 4,405,000 Total liabilities 27,599,000 24,992,000 Shareholders' equity 129,358,000 128,701,000 $156,957,000 $153,693,000 See accompanying notes to consolidated financial statements.
- 3 - Unaudited INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended September 30, 1999 1998 Net sales $62,863,000 $62,150,000 Cost of sales 44,269,000 42,827,000 Gross profit 18,594,000 19,323,000 Selling, general and administrative expenses 15,248,000 13,870,000 Income from operations 3,346,000 5,453,000 Interest income (expense), net (44,000) 106,000 Income before income taxes 3,302,000 5,559,000 Provision for income taxes 1,330,000 2,150,000 Net income $ 1,972,000 $ 3,409,000 Earnings per share: Basic $.46 $.79 Diluted $.46 $.79 Shares used to compute EPS: Basic 4,291,794 4,290,994 Diluted 4,291,794 4,298,807 Cash dividends per share $.30 $.30 See accompanying notes to consolidated financial statements.
- 4 - Unaudited INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended September 30, 1999 1998 Cash flows from operating activities: Net income $ 1,972,000 $ 3,409,000 Adjustments for noncash transactions: Depreciation and amortization 1,778,000 1,470,000 Changes in assets and liabilities: Receivables (2,522,000) (2,893,000) Inventories 602,000 (862,000) Prepaid expenses and deposits 733,000 (539,000) Accounts payable (393,000) 1,820,000 Accrued liabilities (1,594,000) (1,033,000) Income taxes payable 1,337,000 1,863,000 Net cash provided by operating activities 1,913,000 3,235,000 Cash flows from investing activities: Capital expenditures (3,708,000) (4,375,000) Proceeds from sales of capital assets 61,000 471,000 Net cash used in investing activities (3,647,000) (3,904,000) Cash flows from financing activities: Dividends paid to shareholders (1,287,000) (1,288,000) Net borrowings under lines of credit 3,257,000 Proceeds from exercises of stock options 29,000 Net cash provided by (used in) financing activities 1,970,000 (1,259,000) Net change in cash and cash equivalents 236,000 (1,928,000) Cash and cash equivalents at beginning of period 2,269,000 14,320,000 Cash and cash equivalents at end of period $ 2,505,000 $12,392,000 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, 1999 and June 30, 1999, and the results of operations and cash flows for the three month periods ended September 30, 1999 and 1998. The results of operations for the three month periods ended September 30, 1999 and 1998 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. Comprehensive Income Comprehensive income, defined as net income and other comprehensive income, for the first quarters ended September 30, 1999 and 1998 was $1,945,000 and $3,296,000, respectively. Other comprehensive income includes foreign currency translation adjustments recorded directly into shareholders' equity. Balance Sheet Components Sept. 30, 1999 June 30, 1999 Inventories, lower of Fifo Cost or Market Raw materials $ 33,178,000 $ 34,915,000 Work in process 2,164,000 1,466,000 Finished Goods 5,632,000 5,195,000 $ 40,974,000 $ 41,576,000 Shareholders' Equity Common stock $ 4,765,000 $ 4,765,000 Paid-in capital 4,123,000 4,123,000 Retained earnings 120,481,000 119,796,000 Accumulated other comprehensive income (11,000) 17,000 $129,358,000 $128,701,000 - 6 - Unaudited Segment Information The following presents the Company's net sales, operating income and total assets by operating segment, reconciling to the Company's totals. All data presented in thousands of dollars.
Net Sales: Three Months Ended September 30, 1999 1998 Commercial $ 29,802 $ 31,972 Residential 15,768 13,102 Aluminum Extrusion 24,951 28,912 Glass 4,203 3,999 Total segments 74,724 77,985 Eliminations (11,861) (15,835) Total $ 62,863 $ 62,150 Operating Income: Three Months Ended September 30, 1999 1998 Commercial $ 3,658 $ 4,540 Residential 1,067 636 Aluminum Extrusion (388) 2,393 Glass 158 (53) Total segments 4,495 7,516 Eliminations 973 7 Corporate (2,122) (2,070) Total $ 3,346 $ 5,453 Total Assets: Sept. 30, June 30, 1999 1999 Commercial $ 68,265 $ 69,306 Residential 29,754 28,874 Aluminum Extrusion 41,601 38,543 Glass 8,469 8,156 Total segments 148,089 144,879 Corporate 8,868 8,814 Total $156,957 $153,693
- 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 Net sales for the first quarter ended September 30, 1999 increased by $713,000 or 1.1% from the comparable quarter of the prior year. This increase in sales includes a $2,650,000 or 20.3% increase posted by the Residential Products Group resulting from strong demand in Northern California and continued penetration into the Colorado market. Offsetting this was a $2,158,000 or 6.8% decrease posted by the Commercial Products Group, primarily resulting from an inadequate supply of raw materials from our aluminum extrusion operations. The cost of sales as a percentage of net sales was 70.4% for the quarter ended September 30, 1999 as opposed to 68.9% for the comparable prior year period. This increase is largely attributable to higher labor and overhead expenses incurred in our extrusion operations resulting from equipment failures and mechanical breakdowns. Selling, general and administrative expenses for the quarter were $1,378,000 or 9.9% higher than those of the comparable quarter of the prior year. This increase reflects costs incurred in support of the increased sales volume coupled with compensation, recruiting and relocation costs associated with realigning and enlarging operating group management teams. The swing from net interest income for the prior year quarter to net interest expense in the current year quarter relates to the depletion of funds available for investment due primarily to heavy capital expenditures. The effective tax rate for the quarter ended September 30, 1999 was 40.3% whereas the comparable quarter of fiscal year 1999 was 38.7%. This increase is primarily attributable to reduced income in states with low effective tax rates. Liquidity and Capital Resources Working capital decreased to $67,846,000 during the three months ended September 30, 1999, a decrease of $1,184,000 from June 30, 1999. The ratio of current assets to current liabilities is currently 3.9 as compared to 4.4 as of the beginning of the year. The Company's projected capital expenditures for fiscal 2000 and related financing remain unchanged from those described in the June 30, 1999 Annual Report. The Company's line of credit remains unchanged from that noted in the June 30, 1999 Annual Report to Shareholders. - 8 - Unaudited Year 2000 The Company has substantially completed its migration to compliant financial and operational software and thus has not developed contingency plans. The consequence 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. Forward-Looking Information This 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. - 9 - INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES Signatures Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. International Aluminum Corporation (Registrant) Date: November 11, 1999 DAVID C. TREINEN David C. Treinen Senior Vice President - Finance and Administration (Principal Financial Officer) Date: November 11, 1999 MITCHELL K. FOGELMAN Mitchell K. Fogelman Vice President - Controller (Principal Accounting Officer) - 10 - EX-27 2 FDS FOR THREE MONTHS ENDED SEPTEMBER 30, 1999
5 1,000 3-MOS JUN-30-2000 SEP-30-1999 2,505 0 41,893 0 40,974 91,040 113,078 56,806 156,957 23,194 0 0 0 8,888 120,470 156,957 62,863 62,863 44,269 44,269 0 227 44 3,302 1,330 1,972 0 0 0 1,972 .46 .46
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