-----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, Z2YbchhzqucT8AXYNeiY5rF/4SfVizeABmO5DQsMFdcXlG5YSsW4U3FXDw+X35T7 gQupVP5yFr1QWXTSH0FLBg== 0000912057-95-003471.txt : 19950511 0000912057-95-003471.hdr.sgml : 19950511 ACCESSION NUMBER: 0000912057-95-003471 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950510 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: PACCAR INC CENTRAL INDEX KEY: 0000075362 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLES & PASSENGER CAR BODIES [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: 95536348 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 10-Q - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 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 March 31, 1995 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 periods 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--38,859,530 shares as of April 30, 1995 ------------------------------------------------------------------- - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PACCAR Inc AND SUBSIDIARIES - -------------------------------------------------------------------------------- INDEX Page ---- PART I. FINANCIAL INFORMATION: ITEM 1. FINANCIAL STATEMENTS: Consolidated Statements of Income -- Three Months Ended March 31, 1995 and 1994....................... 3 Condensed Consolidated Balance Sheets -- March 31, 1995, and December 31, 1994............................ 4 Condensed Consolidated Statements of Cash Flows -- Three Months Ended March 31, 1995 and 1994....................... 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 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.......... 10 ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K............................. 10 SIGNATURE............................................................... 11 INDEX TO EXHIBITS....................................................... 12 -2- 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 March 31 1995 1994 - ------------------------------------------------------------------------------- MANUFACTURING: Revenues Net sales $1,123.7 $986.3 Other 5.9 .4 - ------------------------------------------------------------------------------- 1,129.6 986.7 Costs and Expenses Cost of sales 978.7 855.0 Selling, general and administrative 85.2 77.2 Interest .5 .5 - ------------------------------------------------------------------------------- 1,064.4 932.7 - ------------------------------------------------------------------------------- Manufacturing Income Before Income Taxes 65.2 54.0 FINANCIAL SERVICES: Revenues 59.9 46.7 Costs and Expenses Interest and other 33.7 22.5 Selling, general and administrative 10.8 10.3 Provision for losses on receivables 4.8 1.5 - ------------------------------------------------------------------------------- 49.3 34.3 - ------------------------------------------------------------------------------- Financial Services Income Before Income Taxes 10.6 12.4 OTHER: Investment income 6.5 5.0 Minority interest and other .9 (3.4) - ------------------------------------------------------------------------------- Total Income Before Income Taxes 83.2 68.0 Income taxes 28.9 24.4 - ------------------------------------------------------------------------------- Net Income $ 54.3 $ 43.6 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- Weighted average number of common shares outstanding 38.9 38.9 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- Per Share Data: Net income $ 1.40 $1.12 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- Dividends declared $ .25 $ .25 - ------------------------------------------------------------------------------- - -------------------------------------------------------------------------------
See Notes to Consolidated Financial Statements. -3- FORM 10-Q PACCAR Inc AND SUBSIDIARIES
- ------------------------------------------------------------------------------- Condensed Consolidated Balance Sheets March 31 December 31 ASSETS (Millions of Dollars) 1995 1994* - ------------------------------------------------------------------------------- MANUFACTURING: (Unaudited) Current Assets Cash and equivalents $ 294.8 $ 289.9 Trade receivables - net 272.6 232.9 Marketable securities 246.3 241.7 Inventories 263.8 274.5 Deferred taxes and other current assets 63.9 65.1 - ------------------------------------------------------------------------------- Total Manufacturing Current Assets 1,141.4 1,104.1 Investments and Other 86.3 88.7 Property, Plant and Equipment, Net 370.7 369.9 - ------------------------------------------------------------------------------- Total Manufacturing Assets 1,598.4 1,562.7 - ------------------------------------------------------------------------------- FINANCIAL SERVICES: Cash and equivalents 12.5 21.4 Finance and other receivables, net of allowance for losses 2,489.8 2,469.6 Less unearned interest (195.2) (194.7) - ------------------------------------------------------------------------------- 2,294.6 2,274.9 Equipment on operating leases, net 53.4 53.8 Other assets 18.2 15.4 - ------------------------------------------------------------------------------- Total Financial Services Assets 2,378.7 2,365.5 - ------------------------------------------------------------------------------- $3,977.1 $3,928.2 - ------------------------------------------------------------------------------- - -------------------------------------------------------------------------------
-4- FORM 10-Q PACCAR Inc AND SUBSIDIARIES
- ------------------------------------------------------------------------------- March 31 December 31 LIABILITIES AND STOCKHOLDERS' EQUITY 1995 1994* - ------------------------------------------------------------------------------- MANUFACTURING: (Unaudited) Current Liabilities Accounts payable and accrued expenses $ 617.1 $ 620.3 Income taxes 41.7 22.5 Dividend payable 77.7 Other .5 1.8 - ------------------------------------------------------------------------------- Total Manufacturing Current Liabilities 659.3 722.3 Long-Term Debt 11.0 11.1 Other 104.7 85.7 - ------------------------------------------------------------------------------- Total Manufacturing Liabilities 775.0 819.1 - ------------------------------------------------------------------------------- FINANCIAL SERVICES: Accounts payable and accrued expenses 36.4 70.6 Commercial paper and bank loans 797.8 687.7 Long-term debt 994.9 999.9 Deferred income taxes and other 140.6 143.5 - ------------------------------------------------------------------------------- Total Financial Services Liabilities 1,969.7 1,901.7 - ------------------------------------------------------------------------------- MINORITY INTEREST 24.9 32.9 STOCKHOLDERS' EQUITY Preferred stock, no par value: Authorized 1,000,000 shares, none issued Common stock, $12.00 par value: Authorized 100,000,000 shares, issued 38,859,530 shares 466.3 466.3 Additional paid-in capital 218.2 218.2 Retained earnings 601.1 556.5 Cumulative translation and other adjustments (78.1) (66.5) - ------------------------------------------------------------------------------- Total Stockholders' Equity 1,207.5 1,174.5 - ------------------------------------------------------------------------------- $3,977.1 $3,928.2 - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- * The December 31, 1994, consolidated balance sheet has been derived from audited financial statements.
See Notes to Consolidated Financial Statements. -5- FORM 10-Q PACCAR Inc AND SUBSIDIARIES
- ------------------------------------------------------------------------------- Condensed Consolidated Statements of Cash Flows (Unaudited) (Millions of Dollars) - ------------------------------------------------------------------------------- - ------------------------------------------------------------------------------- Three Months Ended March 31 1995 1994 - ------------------------------------------------------------------------------- NET CASH PROVIDED BY OPERATING ACTIVITIES $ 34.4 $ 67.8 INVESTING ACTIVITIES: Loans and financing leases originated (255.3) (295.5) Collections on loans and financing leases 241.9 243.4 Net (increase) decrease in wholesale receivables (31.1) 3.0 Marketable securities purchased (487.3) (184.1) Marketable securities sales and maturities 488.7 185.0 Acquisition of controlling interest in affiliate, net of cash consolidated 44.3 Acquisition of property, plant, and equipment (18.7) (9.5) Acquisition of equipment for operating leases (3.7) (5.5) Proceeds from asset disposals 8.8 7.4 Other 3.9 (3.0) - ------------------------------------------------------------------------------- Net Cash Used in Investing Activities (52.8) (14.5) FINANCING ACTIVITIES: Net increase (decrease) in commercial paper and bank loans 97.9 (67.0) Cash dividends (87.4) (45.3) Proceeds from long-term debt 133.9 187.1 Payments of long-term debt (117.9) (76.9) - ------------------------------------------------------------------------------- Net Cash Provided by (Used in) Financing Activities 26.5 (2.1) Effect of exchange rate changes on cash (12.1) (2.4) - ------------------------------------------------------------------------------- Net (Decrease) Increase in Cash and Equivalents (4.0) 48.8 Cash and equivalents at beginning of period 311.3 223.2 - ------------------------------------------------------------------------------- Cash and equivalents at end of period $307.3 $272.0 - ------------------------------------------------------------------------------- - -------------------------------------------------------------------------------
See Notes to Consolidated Financial Statements. -6- 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) 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, 1994. RECLASSIFICATIONS: Certain prior year amounts have been reclassified to conform to the 1995 presentation.
NOTE B--Inventories - ------------------------------------------------------------------------------- March 31 December 31 1995 1994 - ------------------------------------------------------------------------------- Inventories at FIFO cost: (Unaudited) Finished products $203.0 $188.6 Work in process and raw materials 186.7 210.2 - ------------------------------------------------------------------------------- 389.7 398.8 Less excess of FIFO cost over LIFO (125.9) (124.3) - ------------------------------------------------------------------------------- $263.8 $274.5 - ------------------------------------------------------------------------------- - -------------------------------------------------------------------------------
Under the LIFO method of accounting (used for approximately 81% of March 31, 1995, 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 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- 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 set new first quarter records for sales and net income despite limited production and sales in Mexico. Compared to last year, net income increased over 24% to $54.3 million on a 14% gain in sales. Kenworth and Peterbilt divisions and PACCAR Financial Corp., the largest of the Company's financial services subsidiaries, all had excellent results. Manufacturing income before income taxes rose 21% compared to the year- earlier quarter. All manufacturing divisions with the exception of PACCAR's Mexican affiliate, VILPAC, S.A., reported improved sales. The improvement in profits was principally attributable to the truck segment. Sustained demand for Kenworth and Peterbilt products has kept backlogs high in the U.S. and Canada. Operations at plants producing for these markets remained near capacity levels. Combined results for PACCAR's international truck operations in Australia and the United Kingdom also improved compared to the first quarter of 1994 with higher sales and profitability. In Mexico, continued adverse economic conditions have kept VILPAC's production and sales at minimal levels. Sales and profits for winches and oilfield equipment compared favorably to first quarter 1994 largely due to actions taken last year to consolidate operations and diversify product offerings. The Auto Parts segment also reported improved operating results. For the Financial Services segment, net finance receivable portfolios increased slightly from December 31, 1994 levels but were 18% above year-earlier balances. Nearly all of PACCAR's finance and leasing operations attained higher profitability in the first quarter of 1995 compared to the first quarter of 1994. However, because of higher loan loss provisions and operating losses recorded in Mexico by VILPAC's financial subsidiary, results for the segment were below those of last year. -8- FORM 10-Q PACCAR Inc AND SUBSIDIARIES LIQUIDITY AND CAPITAL RESOURCES: PACCAR's ratio of manufacturing current assets to current liabilities at March 31, 1995 increased to 1.73 from 1.53 at December 31, 1994. During the first quarter of 1995, the Company used cash from operations and net proceeds from borrowings (principally commercial paper and bank loans) to fund an increase in Financial Services receivables (comprised mostly of wholesale receivables), pay the special year-end and regular first quarter dividends and increase its net investment in fixed assets and equipment for operating leases. The reduction in 1995 of cash from operations is principally attributable to changes in components of working capital. Other information on liquidity and sources of capital as presented in the 1994 Annual Report to Stockholders continues to be relevant. -9- 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 March 31, 1995. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS (a) The annual meeting of stockholders was held on April 25, 1995. (b) The following persons were elected to serve as directors: Class III - Term Expiring in 1998 --------------------------------- Charles M. Pigott John W. Pitts Dr. Carl H. Hahn Other persons whose term of office as a director continued after the meeting: Class I - Term Expiring in 1996 ------------------------------- John M. Fluke, Jr. David J. Hovind Michael A. Tembreull James H. Wiborg Class II - Term Expiring in 1997 -------------------------------- Richard P. Cooley Harold J. Haynes James C. Pigott Mark C. Pigott (c) None (d) None ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits. The 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 March 31, 1995. -10- 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 May 10, 1995 By /s/ G. D. Hatchel ------------------------------ -------------------------------- G. D. Hatchel Vice President and Controller (Authorized Officer and Chief Accounting Officer) -11- 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- 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 EXHIBIT 27
5 This schedule contains summary financial information extracted from the consolidated statements of income for the three months ended March 31, 1995 and 1994, and the condensed consolidated balance sheets, March 31, 1995 and December 31, 1994 of PACCAR Inc and Subsidiaries and is qualified in its entirety by reference to such financial statements. 1,000 3-MOS DEC-31-1995 MAR-31-1995 307,300 246,300 2,567,200 0 263,800 0 370,700 0 3,977,100 0 1,005,900 466,300 0 0 741,200 3,977,100 1,123,700 1,189,500 978,700 1,012,400 0 4,800 500 83,200 28,900 54,300 0 0 0 54,300 1.40 1.40
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