-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, WIbtdRlF/e+p0yDJaREtd9h9q0qbiKIrmrh2dIBC1d9O7YPAcZYKZSTHbJGCLmiO 68wlWP/BPrHEzv+dYUt78w== 0000891020-94-000190.txt : 19941117 0000891020-94-000190.hdr.sgml : 19941117 ACCESSION NUMBER: 0000891020-94-000190 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19940930 FILED AS OF DATE: 19941108 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: PACCAR INC CENTRAL INDEX KEY: 0000075362 STANDARD INDUSTRIAL CLASSIFICATION: 3711 IRS NUMBER: 910351110 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-06394 FILM NUMBER: 94558059 BUSINESS ADDRESS: STREET 1: 777 106TH AVE NE CITY: BELLEVUE STATE: WA ZIP: 98004 BUSINESS PHONE: 2064557400 MAIL ADDRESS: STREET 1: 777 106TH AVENUE NE CITY: BELLEVUE STATE: WA ZIP: 98004 FORMER COMPANY: FORMER CONFORMED NAME: PACIFIC CAR & FOUNDRY CO DATE OF NAME CHANGE: 19720707 10-Q 1 PACCAR INC FORM 10-Q 1 =============================================================================== UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the period ended September 30, 1994 Commission File No. 0-6394 PACCAR Inc - - - -------------------------------------------------------------------------------- (Exact name of Registrant as specified in its charter) Delaware 91-0351110 - - - ------------------------------------- -------------------------------------- (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 777 - 106th Ave. N.E., Bellevue, WA 98004 - - - -------------------------------------------------------------------------------- (Address of principal executive offices) (Zip Code)
(206) 455-7400 - - - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for at least the past 90 days. Yes X No --- --- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common Stock, $12 par value--38,858,281 shares as of October 31, 1994 --------------------------------------------------------------------- =============================================================================== 2 FORM 10-Q PACCAR Inc AND SUBSIDIARIES - - - -------------------------------------------------------------------------------- INDEX
Page ---- PART I. FINANCIAL INFORMATION: ITEM 1. FINANCIAL STATEMENTS: Consolidated Statements of Income -- Three and Nine Months Ended September 30, 1994 and 1993............. 3 Condensed Consolidated Balance Sheets -- September 30, 1994 and December 31, 1993............................ 4 Condensed Consolidated Statements of Cash Flows -- Nine Months Ended September 30, 1994 and 1993....................... 6 Notes to Consolidated Financial Statements............................ 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION................................ 8 PART II. OTHER INFORMATION: ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K................................ 10 SIGNATURE................................................................. 11 INDEX TO EXHIBITS......................................................... 12
-2- 3 FORM 10-Q PACCAR Inc AND SUBSIDIARIES PART I--FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS
- - - --------------------------------------------------------------------------------------------------------------- Consolidated Statements of Income (Unaudited) (Millions except per share amounts) =============================================================================================================== Three Months Ended Nine Months Ended September 30 September 30 - - - --------------------------------------------------------------------------------------------------------------- 1994 1993 1994 1993 - - - --------------------------------------------------------------------------------------------------------------- MANUFACTURING: Revenues Net sales $1,114.5 $884.1 $3,171.6 $2,483.5 Other .7 2.6 2.0 8.8 - - - --------------------------------------------------------------------------------------------------------------- 1,115.2 886.7 3,173.6 2,492.3 Costs and Expenses Cost of sales 961.2 767.0 2,741.6 2,170.6 Selling, general and administrative 86.8 73.3 245.1 210.6 Interest .8 .4 1.9 1.4 - - - --------------------------------------------------------------------------------------------------------------- 1,048.8 840.7 2,988.6 2,382.6 - - - --------------------------------------------------------------------------------------------------------------- Manufacturing Income Before Income Taxes 66.4 46.0 185.0 109.7 FINANCIAL SERVICES: Revenues 53.4 41.3 148.5 119.9 Costs and Expenses Interest and other 26.6 19.3 72.3 57.7 Operating 10.2 9.0 30.9 26.5 Provision for losses on receivables .6 2.9 2.6 6.7 - - - --------------------------------------------------------------------------------------------------------------- 37.4 31.2 105.8 90.9 - - - --------------------------------------------------------------------------------------------------------------- Financial Services Income Before Income Taxes 16.0 10.1 42.7 29.0 OTHER: Investment income 6.1 3.7 16.9 11.3 Minority interest and other (5.2) .2 (14.4) .8 - - - ---------------------------------------------------------------------------------------------------------------- Total Income Before Income Taxes 83.3 60.0 230.2 150.8 Income taxes 30.1 23.5 82.8 54.1 - - - ---------------------------------------------------------------------------------------------------------------- Net Income $ 53.2 $ 36.5 $ 147.4 $ 96.7 ================================================================================================================ Weighted average number of common shares outstanding 38.9 38.9* 38.9 38.9* ================================================================================================================ Per Share Data: Net income $ 1.37 $ .94* $ 3.79 $ 2.49* ================================================================================================================ Dividends declared $ .25 $ .22* $ .75 $ .66* ================================================================================================================
* Restated to give effect to a 15% stock dividend declared December 14, 1993. See Notes to Consolidated Financial Statements. -3- 4 FORM 10-Q PACCAR Inc AND SUBSIDIARIES
_________________________________________________________________________________________________________________ Condensed Consolidated Balance Sheets September 30 December 31 ASSETS (Millions of Dollars) 1994 1993* ================================================================================================================= MANUFACTURING: (Unaudited) Current Assets Cash and equivalents $ 293.1 $ 206.2 Trade receivables, net 304.6 182.8 Marketable securities 240.5 235.7 Inventories 238.6 193.7 Deferred taxes and other current assets 82.9 57.0 - - - ----------------------------------------------------------------------------------------------------------------- Total Manufacturing Current Assets 1,159.7 875.4 Investments and Other 80.7 124.1 Property, Plant and Equipment, Net 365.5 344.4 - - - ----------------------------------------------------------------------------------------------------------------- Total Manufacturing Assets 1,605.9 1,343.9 - - - ----------------------------------------------------------------------------------------------------------------- FINANCIAL SERVICES: Cash and equivalents 18.3 17.0 Notes, contracts and other receivables, net of allowance for losses 2,291.3 2,024.6 Less unearned interest (175.7) (155.9) - - - ----------------------------------------------------------------------------------------------------------------- 2,115.6 1,868.7 Equipment on operating leases, net 48.9 47.9 Other assets 14.7 13.7 - - - ----------------------------------------------------------------------------------------------------------------- Total Financial Services Assets 2,197.5 1,947.3 - - - ----------------------------------------------------------------------------------------------------------------- $3,803.4 $3,291.2 =================================================================================================================
-4- 5 FORM 10-Q PACCAR Inc AND SUBSIDIARIES
- - - --------------------------------------------------------------------------------------------------------------- September 30 December 31 LIABILITIES AND STOCKHOLDERS' EQUITY 1994 1993* ============================================================================================================== MANUFACTURING: (Unaudited) Current Liabilities Accounts payable and accrued expenses $ 616.7 $ 458.5 Income taxes 25.4 21.3 Dividend payable 33.8 Other 5.2 2.0 - - - --------------------------------------------------------------------------------------------------------------- Total Manufacturing Current Liabilities 647.3 515.6 Long-Term Debt 11.2 11.7 Other 85.4 72.1 - - - --------------------------------------------------------------------------------------------------------------- Total Manufacturing Liabilities 743.9 599.4 - - - --------------------------------------------------------------------------------------------------------------- FINANCIAL SERVICES: Accounts payable and accrued expenses 34.5 49.3 Commercial paper and bank loans 617.8 696.0 Long-term debt 1,007.6 709.1 Deferred income taxes and other 130.9 129.9 - - - --------------------------------------------------------------------------------------------------------------- Total Financial Services Liabilities 1,790.8 1,584.3 - - - --------------------------------------------------------------------------------------------------------------- MINORITY INTEREST 46.0 STOCKHOLDERS' EQUITY Preferred stock, no par value: Authorized 1,000,000 shares, none issued Common stock, $12 par value: Authorized 100,000,000 shares, issued 38,858,281 shares 466.3 466.3 Additional paid-in capital 218.1 217.9 Retained earnings 586.8 468.6 Currency translation and other adjustments (48.5) (45.3) - - - --------------------------------------------------------------------------------------------------------------- Total Stockholders' Equity 1,222.7 1,107.5 - - - --------------------------------------------------------------------------------------------------------------- $3,803.4 $3,291.2 ===============================================================================================================
* The December 31, 1993, condensed consolidated balance sheet has been derived from audited financial statements. See Notes to Consolidated Financial Statements. -5- 6 FORM 10-Q PACCAR Inc AND SUBSIDIARIES
- - - -------------------------------------------------------------------------------------- Condensed Consolidated Statements of Cash Flows (Unaudited) (Millions of Dollars) ====================================================================================== Nine Months Ended September 30 1994 1993 - - - -------------------------------------------------------------------------------------- NET CASH PROVIDED BY OPERATING ACTIVITIES $ 172.4 $ 82.7 INVESTING ACTIVITIES: Loans and finance leases originated (877.8) (634.1) Collections on loans and finance leases 617.8 395.2 Net (increase) decrease in wholesale receivables 34.4 (37.6) Marketable securities purchased (1,073.4) (150.5) Marketable securities sales and maturities 1,079.9 147.2 Acquisition of controlling interest in affiliate, net of cash consolidated 44.3 Acquisition of property, plant and equipment (32.6) (74.8) Acquisition of equipment for operating leases (14.8) (14.5) Proceeds from asset disposals 17.5 20.5 Other (5.6) (5.1) - - - -------------------------------------------------------------------------------------- Net Cash Used in Investing Activities (210.3) (353.7) FINANCING ACTIVITIES: Purchase of treasury stock (1.2) Net (decrease) increase in commercial paper and bank loans (98.9) 85.6 Cash dividends (64.7) (35.5) Proceeds of long-term debt 450.5 320.0 Payment of long-term debt (154.8) (165.9) - - - -------------------------------------------------------------------------------------- Net Cash Provided by Financing Activities 132.1 203.0 Effect of exchange rate changes on cash (6.0) 1.0 - - - -------------------------------------------------------------------------------------- Net Increase (Decrease) in Cash and Equivalents 88.2 (67.0) Cash and equivalents at beginning of period 223.2 250.4 - - - -------------------------------------------------------------------------------------- Cash and equivalents at end of period $ 311.4 $ 183.4 ======================================================================================
See Notes to Consolidated Financial Statements. -6- 7 FORM 10-Q PACCAR Inc AND SUBSIDIARIES - - - -------------------------------------------------------------------------------- Notes to Consolidated Financial Statements (Millions of Dollars) ================================================================================ NOTE A--Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals and the adjustment, in 1993, to reflect the impact of the higher U.S. federal income tax rate on current and deferred taxes) considered necessary for a fair presentation have been included. For further information, refer to the consolidated financial statements and footnotes included in the Company's annual report on Form 10-K for the year ended December 31, 1993. Reclassifications: Certain prior year amounts have been reclassified to conform to the 1994 presentation. NOTE B--Accounting Change Effective January 1, 1994, the Company adopted Financial Accounting Standards Board (FAS) Statement No. 115, Accounting for Certain Investments in Debt and Equity Securities. In accordance with the statement, marketable securities as shown in the accompanying financial statements have been classified as available for sale. The adoption had no material impact on the Company's financial position or results of operations. NOTE C--Inventories
- - - -------------------------------------------------------------------------------- September 30 December 31 1994 1993 - - - -------------------------------------------------------------------------------- (Unaudited) Inventories at FIFO cost: Finished products $ 185.8 $ 166.7 Work in process and raw materials 178.4 147.8 - - - -------------------------------------------------------------------------------- 364.2 314.5 Less excess of FIFO cost over LIFO (125.6) (120.8) - - - -------------------------------------------------------------------------------- $ 238.6 $ 193.7 ================================================================================
Under the LIFO method of accounting (used for approximately 76% of September 30, 1994 inventories), an actual valuation can be made only at the end of each year based on year-end inventory levels and costs. Accordingly, interim valuations are based on management's estimates of those year-end amounts. Based on present estimates of 1994 year-end inventory levels, no significant liquidations of LIFO inventory quantities are expected. Because inventory levels and costs are subject to many forces beyond management's control, the present estimates are subject to the final year-end LIFO inventory valuation. -7- 8 FORM 10-Q PACCAR Inc AND SUBSIDIARIES ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION RESULTS OF OPERATIONS: PACCAR's results for the third quarter reflected continued growth in sales and net income. Compared to 1993, third quarter net income grew 46% on a 26% net sales increase. Earnings for the first nine months improved 52% on a 28% gain in sales. Record truck unit sales volumes and stronger Financial Services segment results provided most of the improvement, but virtually all divisions reported better results. Financial statement consolidation of PACCAR's Mexican affiliate, VILPAC, S.A., initiated on January 1, 1994, accounted for approximately 30% of the increase in both third quarter and year-to-date manufacturing net sales. Manufacturing income before income taxes rose 44% in the third quarter of 1994 compared to the year-earlier quarter. For the first nine months, manufacturing pretax earnings increased 69% over the corresponding period of 1993. Higher truck unit sales volumes and improved margins provided for most of these increases in earnings. Demand for Kenworth and Peterbilt continues at exceptionally high levels. Backlogs are extended despite record production rates. Internationally, PACCAR's truck operations in Mexico, Australia and the United Kingdom all achieved higher sales and greater profitability for both the third quarter and first nine months of 1994 compared to the prior year. The Financial Services segment improved pretax earnings 58% in the third quarter and 47% for the first nine months compared to 1993. Profitability gains resulted primarily from loan and lease portfolio growth in domestic as well as international operations and favorable credit loss experience. Net loans and leases grew an additional 5% in the third quarter for a year-to-date gain of over 13%. Investment income increased in 1994 primarily because of the consolidation of corresponding amounts for VILPAC. In the third quarter of 1993, retroactive application of the newly enacted higher corporate tax rate inflated the effective tax rate. -8- 9 FORM 10-Q PACCAR Inc AND SUBSIDIARIES LIQUIDITY AND CAPITAL RESOURCES: PACCAR's ratio of manufacturing current assets to current liabilities at September 30, 1994, increased to 1.79 compared to 1.70 at year-end. In the first nine months of 1994, the Company utilized cash from operations together with proceeds from net long-term debt borrowings to fund Financial Services receivable originations (net of collections), pay the special year-end and regular quarterly dividends, make capital additions and reduce short-term debt. The higher capital additions activity in 1993 represented costs related to construction of the Kenworth manufacturing facility. In January 1994, PACCAR purchased an additional interest in VILPAC, S.A., its Mexican affiliate. The net increase in cash and equivalents at September 30, 1994, resulted in part from consolidation of VILPAC, which had previously been accounted for on an equity basis. Other information on liquidity and sources of capital as presented in the 1993 Annual Report to Stockholders continues to be relevant. -9- 10 FORM 10-Q PACCAR Inc AND SUBSIDIARIES PART II--OTHER INFORMATION For Items 1, 2, 3 and 5, there was no reportable information for any of the three months ended September 30, 1994. Reportable information in response to Item 4 was previously reported on Form 10-Q for the quarter ended March 31, 1994. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits. Any exhibits filed herewith are listed in the accompanying index to exhibits. (b) No reports on Form 8-K have been filed for the quarter ended September 30, 1994. -10- 11 FORM 10-Q PACCAR Inc AND SUBSIDIARIES SIGNATURE 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. PACCAR Inc - - - ---------------------------------- (Registrant) Date November 3, 1994 By /s/ G. D. Hatchel ------------------------------ ----------------------------- G. D. Hatchel Vice President and Controller (Authorized Officer and Chief Accounting Officer) -11- 12 FORM 10-Q PACCAR Inc AND SUBSIDIARIES INDEX TO EXHIBITS Exhibit (in order of assigned index numbers) - - - -------------------------------------------- 3 Articles of incorporation and bylaws: (a) PACCAR Inc Certificate of Incorporation, as amended to April 27, 1990 (incorporated by reference to the Quarterly Report on Form 10-Q for the quarter ended March 31, 1990). (b) PACCAR Inc Bylaws, as amended to April 26, 1994 (incorporated by reference to the Quarterly Report on Form 10-Q for the quarter ended March 31, 1994). 4 Instruments defining the rights of security holders, including indentures: (a) Rights agreement dated as of December 21, 1989, between PACCAR Inc and First Chicago Trust Company of New York setting forth the terms of the Series A Junior Participating Preferred Stock, no par value per share (incorporated by reference to Exhibit 1 of the Current Report on Form 8-K of PACCAR Inc dated December 27, 1989). (b) Indenture for Senior Debt Securities dated as of December 1, 1983, between PACCAR Financial Corp. and Citibank, N.A., Trustee (incorporated by reference to Exhibit 4.1 of the Annual Report on Form 10-K of PACCAR Financial Corp. for the year ended December 31, 1983). (c) First Supplemental Indenture dated as of June 19, 1989, between PACCAR Financial Corp. and Citibank, N.A., Trustee (incorporated by reference to Exhibit 4.2 to PACCAR Financial Corp.'s registration statement on Form S-3, Registration No. 33-29434). (d) Forms of Medium-Term Note, Series E (incorporated by reference to Exhibits 4.3A, 4.3B and 4.3C to PACCAR Financial Corp.'s Registration Statement on Form S-3 dated June 23, 1989, Registration Number 33-29434, and Forms of Medium-Term Note, Series E, incorporated by reference to Exhibit 4.3B.1 to PACCAR Financial Corp.'s Current Report on Form 8-K, dated December 19, 1991, under Commission File Number 0-12553). Letter of Representation among PACCAR Financial Corp., Citibank, N.A. and the Depository Trust Company, Series E, dated July 6, 1989 (incorporated by reference to Exhibit 4.3 of PACCAR Financial Corp.'s Annual Report on Form 10-K, dated March 29, 1990, File Number 0-12553). (e) Forms of Medium-Term Note, Series F (incorporated by reference to Exhibits 4.3A, 4.3B and 4.3C to PACCAR Financial Corp.'s Registration Statement on Form S-3 dated May 26, 1992, Registration Number 33-48118). Form of Letter of Representation among PACCAR Financial Corp., Citibank, N.A., and the Depository Trust Company, Series F (incorporated by reference to Exhibit 4.4 to PACCAR Financial Corp.'s Registration Statement on Form S-3 dated May 26, 1992, Registration Number 33-48118). -12- 13 FORM 10-Q PACCAR Inc AND SUBSIDIARIES INDEX TO EXHIBITS Exhibit (in order of assigned index numbers) - - - -------------------------------------------- (f) Forms of Medium-Term Note, Series G (incorporated by reference to Exhibits 4.3A and 4.3B to PACCAR Financial Corp.'s Registration Statement on Form S-3 dated December 8, 1993, Registration Number 33-51335). Form of Letter of Representation among PACCAR Financial Corp., Citibank, N.A., and the Depository Trust Company, Series G (incorporated by reference to Exhibit 4.4 to PACCAR Financial Corp.'s Registration Statement on Form S-3 dated December 8, 1993, Registration Number 33-51335). 10 Material contracts: (a) PACCAR Inc Incentive Compensation Plan (incorporated by reference to Exhibit (10)(a) of the Annual Report on Form 10-K for the year ended December 31, 1980). (b) PACCAR Inc Deferred Compensation Plan for Directors (incorporated by reference to Exhibit (10)(b) of the Annual Report on Form 10-K for the year ended December 31, 1980). (c) Supplemental Retirement Plan (incorporated by reference to Exhibit (10)(c) of the Annual Report on Form 10-K for the year ended December 31, 1980). (d) 1981 Long Term Incentive Plan (incorporated by reference to Exhibit A of the 1982 Proxy Statement, dated March 25, 1982). (e) Amendment to 1981 Long Term Incentive Plan (incorporated by reference to Exhibit (10)(a) of the Quarterly Report on Form 10-Q for the quarter ended March 31, 1991). (f) PACCAR Inc 1991 Long-Term Incentive Plan (incorporated by reference to Exhibit (10)(h) of the Quarterly Report on Form 10-Q for the quarter ended June 30, 1992). (g) Amended and Restated Deferred Incentive Compensation Plan (incorporated by reference to Exhibit (10)(g) of the Annual Report on Form 10-K for the year ended December 31, 1993). 27 Financial Data Schedule -13- EX-27 2 PACCAR INC 10-Q FINANCIAL DATA SCHEDULE
5 This schedule contains summary financial information extracted from the consolidated statements of income for the three and nine months ended September 30, 1994 and 1993, and the condensed consolidated balance sheets, September 30, 1994 and December 31, 1993 of PACCAR Inc and Subsidiaries and is qualified in its entirety by reference to such financial statements. 1,000 9-MOS DEC-31-1994 SEP-30-1994 311,400 240,500 2,420,200 0 238,600 0 365,500 0 3,803,400 0 1,018,800 466,300 0 0 756,400 3,803,400 3,171,600 3,322,100 2,741,600 2,813,900 0 2,600 1,900 230,200 82,800 147,400 0 0 0 147,400 3.79 3.79
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