<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
- --------------------------------------------------------------------------------
FORM 10-Q
(Mark One)
(X) QUARTERLY REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended April 30, 1995
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission file number 2-23666
------------------------------
CASCADE CORPORATION
AN OREGON CORPORATION
I.R.S. Employer Identification Number 93-0136592
2020 S.W. 4th Avenue
Portland, Oregon 97201
(503) 227-0024
- --------------------------------------------------------------------------------
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 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 shares outstanding
12,009,904, net of treasury shares.
<PAGE>
CASCADE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
(in thousands, except per share figures)
<TABLE>
<CAPTION>
Three months ended
April 30, 1995
--------------------------
1995 1994
------------ ------------
<S> <C> <C>
Net sales $ 57,150 $ 40,850
------------ ------------
Costs and expenses:
Cost of goods sold 37,595 26,055
Depreciation 2,515 1,925
Selling and administrative expenses 9,695 8,860
------------ ------------
49,805 36,840
------------ ------------
Operating income 7,345 4,010
Interest expense, net 105 100
Other expense, net 600 585
------------ ------------
Income before income taxes 6,640 3,325
Income taxes 2,350 1,170
------------ ------------
Net income 4,290 2,155
Retained earnings, beginning of period 79,910 75,262
Cash dividends (1,081) (901)
------------ ------------
Retained earnings, end of period $ 83,119 $ 76,516
------------ ------------
------------ ------------
Net income per share $ .36 $ .18
------------ ------------
------------ ------------
Dividends per share $ .09 $ .075
------------ ------------
------------ ------------
(Based on 12,009,904 common shares outstanding)
</TABLE>
<PAGE>
CASCADE CORPORATION AND SUBSIDIARY COMPANIES
PART 1
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEET Fiscal
(in thousands) Year ended
April 30 January 31
1995 1995
------------ ------------
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 17,490 $ 17,203
Accounts receivable, less allowance
for doubtful accounts of $416 and $481 40,230 35,277
Inventories, at average cost
which is lower than market:
Finished goods and components 15,955 13,934
Goods in process 3,688 3,148
Raw materials 4,759 3,985
------------ ------------
24,402 21,067
Income taxes 151
Prepaid expenses 704 919
------------ ------------
Total current assets 82,826 74,617
Property, plant and equipment, at cost less
accumulated depreciation 64,503 60,607
Other assets 1,859 1,885
------------ ------------
Total assets $ 149,188 $ 137,109
------------ ------------
------------ ------------
Liabilities and Shareholders' Equity
Current liabilities:
Notes payable to banks $ 7,065 $ 5,812
Current portion of long-term debt 254 243
Accounts payable 14,382 16,149
Accrued payroll and payroll taxes 3,674 4,227
Other accrued expenses 4,927 7,365
Income taxes 1,239
------------ ------------
Total current liabilities 31,541 33,796
Long-term debt 16,213 7,809
Deferred income taxes 3,684 4,058
Other liabilities 2,931 2,908
------------ ------------
Total liabilities 54,369 48,571
------------ ------------
Shareholders' equity:
Common stock, $.50 par value,
authorized 20,000,000 shares--
issued 12,391,408 shares 6,196 6,196
Additional paid--in capital 2,045 2,045
Retained earnings 83,119 79,910
Cumulative foreign currency
translation adjustments 4,145 1,073
Treasury stock, at cost
(381,504 shares common) (686) (686)
------------ ------------
Total shareholders' equity 94,819 88,538
Total liabilities and ------------ ------------
shareholders' equity $ 149,188 $ 137,109
------------ ------------
------------ ------------
</TABLE>
<PAGE>
CASCADE CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF CASH FLOWS
<TABLE>
<CAPTION>
(in thousands) Three months ended
April 30
--------------------------
1995 1994
------------ ------------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 4,290 $ 2,155
Adjustments to reconcile net income to net
cash (used in) provided by operating activities:
Depreciation 2,515 1,925
Deferred income taxes (484) (5)
Changes in operating assets and liabilities:
Accounts receivable (4,953) (2,637)
Inventories (3,335) (316)
Prepaid expenses 215 230
Account payable and accrued expenses (4,758) (1,322)
Income taxes 1,390 1,035
Other liabilities 23 21
------------ ------------
Cash (used in) provided by operations (5,097) 1,086
------------ ------------
Cash flows from investing activities:
Acquisition of property, plant and equipment (3,566) (4,111)
Other assets 26 (56)
------------ ------------
Net cash used in investing activities (3,540) (4,167)
------------ ------------
Cash flows from financing activities:
Long-term debt, including current portion 7,663 4,048
Notes payable to banks 1,253 980
Cash dividends (1,081) (901)
------------ ------------
Net cash provided by financing activities 7,835 4,127
------------ ------------
Effect of exchange rate changes 1,089 294
------------ ------------
Increase in cash and cash equivalents 287 1,340
Cash and cash equivalents at
beginning of year 17,203 12,617
------------ ------------
Cash and cash equivalents at end of period $ 17,490 $ 13,957
------------ ------------
------------ ------------
Supplemental disclosure of cash flow information:
Cash paid during the period for:
Interest $ 283 $ 87
Income taxes $ 1,224 $ 1,027
</TABLE>
<PAGE>
CASCADE CORPORATION AND SUBSIDIARY COMPANIES
PART II
ITEM 1. LEGAL PROCEEDINGS
Neither the Company nor any of its subsidiaries are involved in
any material pending legal proceedings other than litigation
incidental to the regular course of business. The company and
its subsidiaries are adequately insured against product
liability, personal injury and property damage claims which may
arise occasionally.
ITEM 2. CHANGES IN SECURITIES
None
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None
ITEM 5. OTHER INFORMATION
None
ITEM 6. EXHIBIT AND REPORTS ON FORM 8-K
During the quarter ended April 30, 1995, the company was not
required to file a Form 8-K with the commission.
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITIONS AND
RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
Consolidated net sales for the three months ended April 30, 1995, were a
record $57,150,000, an increase of 40% when compared to sales of $40,850,000 for
the first quarter of 1994. Net income for the first quarter of $4,290,000 ($.36
per share), was also a record and is nearly double the net income of $2,155,000
($.18 per share) for the corresponding 1994 period. Please note that the per
share amounts used throughout this report are based on 12,009,904 shares, the
number of shares outstanding after the 100% stock dividend that was distributed
on March 15, 1995.
Several important factors contributed to this substantial increase in
sales. In North America sales increased 35% over the first quarter of 1994,
reflecting continued strength in both lift truck orders and shipments. Sales of
materials handling product in Europe increased by 24% over the comparable 1994
quarter in local currencies. However, when translated to a relatively weak U.S.
dollar, this increase is over 40%. Similarly, sales of hydraulic cylinders
produced in our U.K. operations increased by 47% in British pounds, which
equates to a 58% increase in U.S. dollars.
Other expense for the first three months of 1995 and 1994 includes charges
of approximately $440,000 and $375,000 respectively, associated with
environmental evaluations and remediation activities. As previously reported,
the Company has initiated legal action against a number of insurers to enforce
the terms of their policies and to recover the Company's costs.
While we are extremely pleased with the record net income generated in the
first quarter, it should be noted that first quarter 1995 cost of sales was
adversely impacted by start-up costs at our new production facility in Almere,
The Netherlands. These costs were considerably higher than planned due to a
heavy influx of customer orders which placed extraordinary demands on the plant
during the start-up period. We are gratified by the efforts and accomplishments
of the entire Almere team in successfully overcoming these difficulties and we
look forward to an improvement in their operating margins as the year
progresses.
Initial customer acceptance of the new Cascade Auto Clamp-TM-, which was
featured in our 1994 annual report, has been extremely encouraging. The overall
response to this technologically advanced paper roll clamp during extensive
field testing and in product demonstrations around the world is very positive,
and clearly demonstrates Cascade's leadership position in product innovation and
our ability to deliver real value to our customers.
<PAGE>
At their May 9, 1995, meeting, the Board of Directors approved a 20%
increase in the quarterly dividend rate to nine cents per share from the
previous rate of seven and one half cents per share.
In our financial consolidations the U.S. dollar weakened against nearly all
foreign currencies, including declines of 18% against the Japanese yen and
approximately 10% against the Dutch guilder. As a result, the adjustment for
currency translation in our financial statements reflects an increase of
$3,072,000 ($.26 per share) in shareholders' equity for the three months ended
April 30, 1995.
LIQUIDITY AND CAPITAL RESOURCES
Over the preceding five years expenditures for new facilities, machinery,
equipment and tooling were approximately $55,000,000. Capital expenditures of
$3,566,000 have been recorded during the first three months of this fiscal year.
This is lower than the $4,111,000 recorded during the corresponding period in
1994. Additions in both years include expenditures for the European project to
consolidate the production facilities of our Diemen and Amelo factories and our
European offices into one facility at Almere, The Netherlands. Funding for this
project has been obtained from a bank in The Netherlands. Other capital
improvements have been funded from earnings.
Significant shifts occurred in the balance sheet accounts during the
quarter. As previously noted, property, plant and equipment increased due to
capital expenditures, while long-term debt increased due to the mortgage
financing of the European facility. Also, as discussed above, currency rate
changes affected the cumulative translation adjustment account. The Company's
total long and short-term debt to equity ratio was .25 to 1.00 and working
capital was $51,285,000 at April 30, 1995.
<PAGE>
CASCADE CORPORATION AND SUBSIDIARY COMPANIES
SIGNATURES
The enclosed financial statements have not been certified by independent
accountants. However, to the best of my knowledge and belief these financial
statements have been prepared in conformity with generally accepted accounting
principles and on a basis substantially consistent with audited financial
statements included in the annual report filed with the Commission for the
preceding fiscal year.
The Company believes that all adjustments, consisting of normal recurring
adjustments, necessary for a fair statement of the results of operations, have
been included.
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.
CASCADE CORPORATION
______________ ________________________________________
Date G.M. Bitz
Vice President -- Finance
and Secretary
______________ ________________________________________
Date James P. Miller
Treasurer
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> JAN-31-1996
<PERIOD-START> FEB-01-1995
<PERIOD-END> APR-30-1995
<CASH> 17,490
<SECURITIES> 0
<RECEIVABLES> 40,646
<ALLOWANCES> 416
<INVENTORY> 24,402
<CURRENT-ASSETS> 82,826
<PP&E> 134,387
<DEPRECIATION> 69,884
<TOTAL-ASSETS> 149,188
<CURRENT-LIABILITIES> 31,541
<BONDS> 0
<COMMON> 6,196
0
0
<OTHER-SE> 88,623
<TOTAL-LIABILITY-AND-EQUITY> 149,188
<SALES> 57,150
<TOTAL-REVENUES> 57,150
<CGS> 37,595
<TOTAL-COSTS> 49,805
<OTHER-EXPENSES> 600
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 105
<INCOME-PRETAX> 6,640
<INCOME-TAX> 2,350
<INCOME-CONTINUING> 4,290
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 4,290
<EPS-PRIMARY> .36
<EPS-DILUTED> .36
</TABLE>
