-----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, S4JGarARNqhX5RoCCmx4NebB7np5dFlBU0IssJ2ycSTtFTu4Yds1COH8m7NOF5lO R+oNcj6OjUpoXfpr/V2D8A== 0000950148-97-001381.txt : 19970515 0000950148-97-001381.hdr.sgml : 19970515 ACCESSION NUMBER: 0000950148-97-001381 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970514 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: SUPERIOR INDUSTRIES INTERNATIONAL INC CENTRAL INDEX KEY: 0000095552 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLE PARTS & ACCESSORIES [3714] IRS NUMBER: 952594729 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-06615 FILM NUMBER: 97603968 BUSINESS ADDRESS: STREET 1: 7800 WOODLEY AVE CITY: VAN NUYS STATE: CA ZIP: 91406 BUSINESS PHONE: 8187814973 MAIL ADDRESS: STREET 1: 7800 WOODLEY AVENUE CITY: VAN NUYS STATE: CA ZIP: 91406 10-Q 1 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 QUARTERLY PERIOD ENDED MARCH 31, 1997 OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM _________ TO _________ COMMISSION FILE NUMBER 1-6615 SUPERIOR INDUSTRIES INTERNATIONAL, INC. --------------------------------------- (EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER) CALIFORNIA 95-2594729 --------------------------------- ------------------- (STATE OR OTHER JURISDICTION (I.R.S. EMPLOYER OF INCORPORATION OR ORGANIZATION) IDENTIFICATION NO.) 7800 WOODLEY AVENUE 91406 VAN NUYS, CALIFORNIA ---------- ---------------------------------------- (ZIP CODE) (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES) (818) 781-4973 ---------------------------------------------------- (REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE) NOT APPLICABLE ---------------------------------------------------- (FORMER NAME, FORMER ADDRESS AND FORMER FISCAL YEAR, IF CHANGE SINCE LAST REPORT) 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 AND (2) HAS BEEN SUBJECT TO SUCH FILING REQUIREMENTS FOR 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 LAST PRACTICABLE DATE.
OUTSTANDING AT CLASS OF COMMON STOCK MAY 9, 1997 --------------------- ------------------------------- $.50 PAR VALUE 28,132,214
1 2 PART 1 FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS SUPERIOR INDUSTRIES INTERNATIONAL, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (Unaudited) (DOLLARS IN THOUSANDS)
March 31, December 31 1997 1996 -------------- ----------- ASSETS CURRENT ASSETS: Cash and equivalents $ 40,099 $ 36,815 Short-term investments, at the lower of cost or market 5,267 5,288 Receivables, net 66,017 66,567 Inventories Raw materials 17,301 16,606 Work in process 14,508 14,256 Finished goods 20,705 16,868 -------------- ----------- 52,514 47,730 Other current assets 7,677 7,680 -------------- ----------- Total current assets 171,574 164,080 -------------- ----------- PROPERTY, PLANT AND EQUIPMENT, net 159,487 161,670 OTHER ASSETS 32,812 31,840 -------------- ----------- $ 363,873 $ 357,590 ============== =========== LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Notes payable and current portion of long-term debt $ 3,874 $ 3,874 Accounts payable 38,150 46,178 Accrued liabilities 33,144 26,317 -------------- ----------- Total current liabilities 75,168 76,369 -------------- ----------- LONG-TERM DEBT, net 1,883 1,940 OTHER LONG-TERM LIABILITIES 18,309 17,850 DEFERRED INCOME TAXES 10,220 10,320 SHAREHOLDERS' EQUITY 258,293 251,111 -------------- ----------- $ 363,873 $ 357,590 ============== ===========
See notes to consolidated condensed financial statements. 2 3 SUPERIOR INDUSTRIES INTERNATIONAL, INC. CONSOLIDATED CONDENSED STATEMENTS OF INCOME (Unaudited) (DOLLARS IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS)
Three Months Ended March 31, 1997 1996 ------------ ------------ NET SALES $ 125,893 $ 121,461 Cost of Sales 103,496 99,737 ------------ ------------ Gross Profit 22,397 21,724 Selling, general and administrative expenses 4,774 4,832 ------------ ------------ INCOME FROM OPERATIONS 17,623 16,892 Other Income (Expense): Interest expense (143) (481) Interest income 581 174 Miscellaneous, net 54 (2,888) ------------ ------------ 492 (3,195) ------------ ------------ INCOME BEFORE INCOME TAXES 18,115 13,697 Income Taxes 6,567 5,068 ------------ ------------ Net Income $ 11,548 $ 8,629 ============ ============ Earnings Per Share $ 0.41 $ 0.30 ============ ============ Weighted Average and Equivalent Shares Outstanding 28,267,000 29,122,000 ============ ============
See notes to consolidated condensed financial statements. 3 4 SUPERIOR INDUSTRIES INTERNATIONAL, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (Unaudited) (DOLLARS IN THOUSANDS)
Three Months Ended March 31, 1997 1996 ----------- ----------- NET CASH PROVIDED BY OPERATING ACTIVITIES $ 12,887 $ 22,552 CASH FLOWS FROM FINANCING ACTIVITIES: Short-term borrowings - (4,800) Stock options exercised 388 206 Payments of long-term debt (57) (53) Cash dividends (1,698) (1,444) Repurchases of common stock (3,033) (3,886) ----------- ----------- NET CASH USED IN FINANCING ACTIVITIES (4,400) (9,977) ----------- ----------- CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property, plant and equipment, net (4,453) (1,755) Proceeds from sales of marketable securities - (2,855) Investment in Hungarian joint venture (750) 1,357 Purchases of marketable securities - - ----------- ----------- NET CASH USED IN INVESTING ACTIVITIES (5,203) (3,253) ----------- ----------- Net Increase in Cash and Equivalents 3,284 9,322 Cash and Equivalents at Beginning of Period 36,815 3,366 ----------- ----------- Cash and Equivalents at End of Period $ 40,099 $ 12,688 =========== ===========
See notes to consolidated condensed financial statements. 4 5 SUPERIOR INDUSTRIES INTERNATIONAL, INC. CONSOLIDATED CONDENSED STATEMENTS OF SHAREHOLDERS' EQUITY (Unaudited) (DOLLARS IN THOUSANDS EXCEPT SHARE AND PER SHARE AMOUNTS)
Valuation Common Stock Adjustment ----------------------- Additional Cumulative to Number of Paid-In Translation Marketable Retained Shares Amount Capital Adjustment Securities Earnings Total ----------- ---------- ------------ ------------ ------------ ---------- ---------- Balances at December 31, 1996 28,323,666 $ 14,161 $ 20,845 $ (13,845) $ (554) $ 230,504 $ 251,111 Net income - - - - - 11,548 11,548 Foreign currency translation, net of related deferred income taxes - - - (9) - - (9) Cash dividends ($.06/share) - - - - - (1,691) (1,691) Repurchases of common stock (129,500) (65) (2,968) - - - (3,033) Stock options exercised, including related tax benefit 34,848 18 371 - - - 389 Valuation adjustment to marketable securities - - - - (22) - (22) ----------- ---------- ------------ ------------ ------------ ---------- ---------- Balances at March 30, 1997 28,229,014 $ 14,114 $ 18,248 $ (13,854) $ (576) $ 240,361 $ 258,293 =========== ========== ============ ============ ============ ========== ==========
See notes to consolidated condensed financial statements. 5 6 SUPERIOR INDUSTRIES INTERNATIONAL, INC. NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS (Unaudited) 1. During interim periods, the Company follows the accounting policies set forth in its Annual Report to Stockholders and applies appropriate interim financial reporting standards, including the use of estimated annual effective tax rates. Users of financial information produced for interim periods are encouraged to refer to the notes contained in the Annual Report to Stockholders when reviewing interim financial results. In the opinion of Management, the accompanying unaudited consolidated condensed financial statements of Superior Industries International, Inc. and subsidiaries (the "Company") contain all adjustments necessary, which are of a normal and recurring nature, to present fairly the financial position of the Company as of March 31, 1997, and the results of its operations and cash flows for the three month periods ended March 31, 1997 and 1996. 2. Per share amounts are based on the weighted average number of shares of common stock outstanding and common stock equivalents, when dilutive, during the period. 3. Interim financial reporting standards require management to make estimates that are based on assumptions regarding the outcome of future events and circumstances not known at the present time. Inevitably, some assumptions may not materialize and unanticipated events and circumstances may occur which vary from those estimates and such variations may significantly affect the Company's future results. 4. No interest was paid for the first quarter of 1997, and $186,000 was paid for the first quarter of 1996. No interest was capitalized for either of these three month periods. Taxes paid were $481,000 and $496,000 for the three months ended March 31, 1997 and 1996, respectively. 5. Some statements included in this filing which are not historical in nature are forward looking statements within the meaning of the Private Securities Legislation Act of 1995. Forward looking statements regarding the Company's future performance and financial results are subject to certain risks and uncertainties that could cause actual results to differ materially from those set forth in the forward looking statements due to a variety of factors. Factors that may impact such forward looking statements include, among others, changes in the condition of the industry, changes in general economic conditions and the success of the Company's strategic and operating plans. 6 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS ----------------------------------------------- SUMMARY OF SALES BY PRODUCT LINE
($000's) Increase (Decrease) For the Three Months Ended March 31, 1997 1996 Over 1996 - ------------------------------------ -------- -------- ---------- OEM CAST ALUMINUM ROAD WHEELS.............. $117,630 $112,646 4.4 % AFTERMARKET................................ 8,263 8,815 (6.3)% -------- -------- $125,893 $121,461 3.6 % ======== ========
RESULTS OF OPERATIONS Net sales were $125.9 million for the quarter ended March 31, 1997, representing an increase of 3.6 percent compared to the same quarter in 1996. Higher net sales resulted from increased installation of aluminum wheels despite automobile manufacturing plant closures during the quarter and slow ramp up of certain new models. Unit shipments of the Company's OEM cast aluminum road wheels increased 6.3 percent compared to prior year levels while production of vehicles by Ford and GM that utilize the Company's cast aluminum road wheels were flat compared to the same quarter last year. Also, shipments to our Japanese and European customers rose 55 percent to a record 9 percent of total company shipments. The sales increase for the 1997 period was also favorably affected by consolidating the Company's chrome-plating business with the operating results of its OEM aluminum plants. For the 1996 quarter, the results of this start up business were combined for one line presentation in Miscellaneous Expense, Net. These increases were partially offset by the lower cost of aluminum content included in the Company's selling prices to OEM customers. Net sales in the aftermarket business decreased 6.3 percent for the quarter ended March 31, 1997, as compared to the same quarter in 1996. This business continues to be impacted by general sluggishness in the overall aftermarket segment of the automotive industry. The gross margin was 17.8 percent for the quarter, versus 17.9 percent for the comparable period in 1996. Despite the growth in sales, the gross margin percent remained consistent with the prior year because of the consolidation of the lower margin chrome-plating business and reduced selling prices. For the quarter, selling, general and administrative expenses are consistent with 1996 in both dollars and as a percentage of net sales. 7 8 Interest income increased $407,000 or 233.9 percent due to a stronger cash position. Interest expense for the first quarter was down $338,000 or 70.2 percent compared to the related quarter in 1996 because of a lower long term debt level. Miscellaneous, net reflects income of $54,000 compared to a loss of $2.9 million for the quarter ended March 31, 1996. The prior year loss was associated with the start up of the Fayetteville chrome-plating plant. LIQUIDITY AND CAPITAL RESOURCES Net cash provided by operating activities was $12.9 million for the three months ended March 31, 1997. Cash was utilized to fund $4.8 million of capital expenditures and to repurchase 129,500 shares of the Company's common stock, pursuant to its 1995 stock repurchase program. Approximately 1.7 million shares have been repurchased under the current 2.0 million authorization. Working capital and current ratio were $96.4 million and 2.3:1 versus $87.7 million and 2.1:1 at March 31, 1997 and December 31, 1996, respectively. Long-term debt to total capitalization ratio improved to .7 percent at quarter end versus .8 percent at year end. Cash and short term investments as of March 31, 1997 were $45.4 million. The Company's cash position is substantially in excess of all remaining debt amounts. 8 9 PART II OTHER INFORMATION ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits - Exhibit 27, Financial Data Schedule (b) Reports on Form 8-K - There were no reports filed during the quarter ended March 31, 1997. (This space intentionally left blank.) 9 10 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. SUPERIOR INDUSTRIES INTERNATIONAL, INC. (Registrant) Date 5/14/97 /s/ Louis L. Borick ------- ------------------------------------ Louis L. Borick President and Chairman of the Board Date 05/14/97 /s/ R. Jeffrey Ornstein -------- ------------------------------------ R. Jeffrey Ornstein Vice President and CFO 10 EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE UNAUDITED, CONSOLIDATED CONDENSED BALANCE SHEETS AS OF MARCH 31, 1997 AND THE UNAUDITED, CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS FOR THE THREE MONTHS THEN ENDED. THIS SCHEDULE IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH UNAUDITED, CONSOLIDATED CONDENSED FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-1997 MAR-31-1997 40,099 5,267 67,422 1,405 52,514 171,574 325,721 166,234 363,873 75,168 1,883 0 0 14,114 244,179 363,873 125,893 126,474 103,496 108,270 (54) 0 143 18,115 6,567 11,548 0 0 0 11,548 0.41 0 OTHER EXPENSES INCLUDE MISCELLANEOUS EXPENSE.
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