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 March 31, 1995 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 (213) 264-1670
(Address of principal executive office) (Telephone Number)
Former name, address and fiscal year, if changed since last report: None
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
Indicate the number of shares outstanding of each of the classes of common
stock
Class Outstanding at May 1, 1995
Common Stock $1.00 Par Value 4,252,489
Page 1 of 11 Pages
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INTERNATIONAL ALUMINUM CORPORATION
AND SUBSIDIARIES
INDEX
Page Nos.
PART I Financial Information
Consolidated Balance Sheets -
March 31, 1995 and June 30, 1994 3
Consolidated Statements of Income -
three and nine month periods
ended March 31, 1995 and 1994 5
Consolidated Statements of Cash Flows -
nine months ended March 31, 1995
and 1994 6
Notes to Consolidated Financial Statements 7
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 8
Signatures 10
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<TABLE>
PART I
INTERNATIONAL ALUMINUM CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<CAPTION>
Unaudited Audited
Assets March 31, 1995 June 30, 1994
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 6,360,000 $ 6,413,000
Investments 2,075,000 9,287,000
Accounts receivable, net 36,262,000 34,715,000
Unbilled receivables 995,000 1,055,000
Inventories:
Raw materials 29,622,000 21,415,000
Work-in-process 3,006,000 2,332,000
Finished goods 7,806,000 4,994,000
Prepaid expenses 2,051,000 1,580,000
Future income tax benefits 1,326,000 1,326,000
Total current assets 89,503,000 83,117,000
____________ ____________
Property, plant and equipment, at cost 92,070,000 87,921,000
Less - Accumulated depreciation (51,473,000) (48,133,000)
40,597,000 39,788,000
____________ ____________
Other assets:
Costs in excess of net assets of
purchased businesses 4,872,000 4,972,000
Other 1,137,000 1,153,000
6,009,000 6,125,000
____________ ____________
$136,109,000 $129,030,000
____________ ____________
____________ ____________
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
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<PAGE>
<TABLE>
INTERNATIONAL ALUMINUM CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
<CAPTION>
Unaudited Audited
Liabilities and Shareholders' Equity March 31, 1995 June 30, 1994
<S> <C> <C>
Current liabilities:
Accounts payable $ 9,030,000 $ 8,449,000
Accrued liabilities 8,889,000 8,877,000
Current portion of long-term debt 562,000 562,000
Income taxes payable 1,056,000 1,777,000
Total current liabilities 19,537,000 19,665,000
____________ ____________
Long-term debt 542,000 1,103,000
____________ ____________
Other liabilities:
Deferred income taxes 4,466,000 4,466,000
Other 405,000 361,000
4,871,000 4,827,000
____________ ____________
Shareholders' equity 111,159,000 103,435,000
____________ ____________
$136,109,000 $129,030,000
____________ ____________
____________ ____________
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
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<PAGE> <TABLE> Unaudited
INTERNATIONAL ALUMINUM CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
<CAPTION>
Three Months Ended Nine Months Ended
March 31, March 31,
1995 1994 1995 1994
<S> <C> <C> <C> <C>
Net sales $53,966,000 $40,426,000 $158,721,000 $127,097,000
Costs and expenses:
Cost of sales 35,982,000 27,857,000 106,719,000 90,991,000
Selling, general and
administrative expenses 12,782,000 9,741,000 35,246,000 29,455,000
Interest (income) expense, net (339,000) 360,000 (234,000) (182,000)
Income before income taxes and a
change in accounting principle 5,541,000 2,468,000 16,990,000 6,833,000
Provision for income taxes 2,230,000 940,000 6,760,000 2,580,000
Income before a change in
accounting principle 3,311,000 1,528,000 10,230,000 4,253,000
Cumulative effect on prior years
of a change in accounting for
income taxes - - - 1,430,000
Net income $ 3,311,000 $ 1,528,000 $ 10,230,000 $ 5,683,000
___________ ___________ ____________ ____________
___________ ___________ ____________ ____________
Per common share:
Earnings before cumulative
effect of a change in
accounting principle $.78 $.36 $2.41 $1.00
Cumulative effect on prior
years of a change in
accounting for income taxes - - - .34
Earnings per common share $.78 $.36 $2.41 $1.34
____ ____ _____ _____
____ ____ _____ _____
Cash dividends per common share $.25 $.25 $.75 $.75
Weighted average number of
common shares outstanding 4,238,885 4,227,920 4,236,705 4,225,552
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
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<PAGE> <TABLE> Unaudited
INTERNATIONAL ALUMINUM CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
<CAPTION>
Nine Months Ended
March 31,
1995 1994
<S> <C> <C>
Cash flows from operating activities:
Net income $10,230,000 $ 5,683,000
Adjustments for noncash transactions:
Depreciation and amortization 3,598,000 3,401,000
Change in deferred income taxes 0 (1,430,000)
Changes in assets and liabilities:
Receivables (1,026,000) (2,060,000)
Inventories (11,549,000) (1,818,000)
Prepaid expenses and other (430,000) (1,535,000)
Accounts payable 395,000 943,000
Accrued liabilities and other ( 78,000) (417,000)
Income taxes payable (715,000) 897,000
Net cash provided by operating activities 425,000 3,664,000
Cash flows from investing activities:
Capital expenditures (6,523,000) (3,054,000)
Proceeds from sales of capital assets 2,491,000 112,000
Changes in investments 7,212,000 (452,000)
Net cash provided by (used in)
investing activities 3,180,000 (3,394,000)
Cash flows from financing activities:
Repayment of long-term debt (561,000) (283,000)
Exercise of stock options 63,000 133,000
Dividends paid to shareholders (3,179,000) (3,171,000)
Net cash used in financing activities (3,677,000) (3,321,000)
Effect of exchange rate changes on cash 19,000 1,000
Net change in cash and cash equivalents (53,000) (3,050,000)
Cash and cash equivalents at beginning
of period 6,413,000 10,413,000
Cash and cash equivalents at end of period $ 6,360,000 $ 7,363,000
___________ ___________
___________ ___________
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
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<PAGE>
<PAGE> 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
its financial position as of March 31, 1995 and June 30, 1994, and the results
of operations for the three and nine month periods ended March 31, 1995 and
1994, and the cash flows for the nine month periods ended March 31, 1995 and
1994.
The results of operations for the three and nine month periods ended
March 31, 1995 and 1994 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.
Cumulative Effect On Prior Years Of A Change In Accounting Principle
In July 1993, the Company adopted Statement of Financial Accounting
Standards No. 109 (FAS 109), Accounting for Income Taxes. The adoption of
FAS 109 changes the Company's method of accounting for income taxes from the
deferred method to an asset and liability approach. Previously, the Company
deferred the past tax effects of timing differences between financial
reporting and taxable income. The asset and liability approach requires the
recognition of deferred tax liabilities and assets for the expected future
consequences of temporary differences between the carrying amounts for
financial reporting purposes and the tax bases of other assets and
liabilities. As of July 1, 1993, the Company recorded a tax benefit of
$1,430,000 or $.34 per share, which represents the net decrease to the
deferred tax liability as of that date. This amount has been reflected in
prior year net income as the cumulative effect of a change in accounting
principle.
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<PAGE>
<PAGE> 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 increased by $13,540,000 or 33.5% for the quarter ended March 31,
1995 and by $31,624,000 or 24.9% for the nine months then ended when compared
with the 1994 periods. These sales include significant increases posted by
the Commercial Products Group, up $7,383,000 or 47.9% for the quarter and by
$16,504,000 or 34.1% for the nine months and by the Aluminum Extrusion Group,
up $5,306,000 or 52.8% for the quarter and $13,617,000 or 50.0% for the six
months.
Cost of sales as a percentage of net sales decreased by 2.2% for the quarter
ended March 31, 1995 and by 4.4% for the nine months then ended when compared
with the 1994 periods. The decrease for the nine month period is primarily
attributable to production cost efficiencies in the Aluminum Extrusion Group
resulting from significantly increased volume and rising prices. For the
quarter these production efficiencies were somewhat offset by increased
material costs.
Selling, general and administrative expenses increased by $3,041,000 or
31.2% for the quarter and by $5,791,000 or 19.7% for the nine month period.
These increases primarily relate to additional selling, distribution and
administrative costs incurred associated with the increased volumes of
business.
The increases in net interest income for the three and nine month periods
relate to significant increases in the market values of interest rate
sensitive securities during the quarter ended March 31, 1995.
The effective tax rate for the nine months ended March 31, 1995 was 39.8%
whereas the comparable period of fiscal year 1994 was 37.8%.
- 8 -
<PAGE>
<PAGE> Unaudited
Liquidity and Capital Resources:
Working capital increased to $69,966,000 during the nine months ended
March 31, 1995, which represents an increase of $6,514,000 from June 30, 1994.
The ratio of current assets to current liabilities is currently 4.6 as
compared to 4.2 as of the beginning of the year.
The Company's projected net capital expenditures for fiscal 1995 include
$10,000,000 for scheduled expansion of production capacity in addition to the
normal annual noncapitalized expenditures for replacement items. The Company
anticipates financing these expenditures through internal cash flow and cash
reserves.
The Company's line of credit remains unchanged from that noted in the June 30,
1994 annual report to shareholders.
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<PAGE>
<PAGE>
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 May 12, 1995 DAVID C. TREINEN
David C. Treinen
Vice President - Finance
(Principal Financial Officer)
Date May 12, 1995 MITCHELL K. FOGELMAN
Mitchell K. Fogelman
Assistant Vice President - Finance
and Controller
(Principal Accounting Officer)
- 10 -
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> JUN-30-1995
<PERIOD-END> MAR-31-1995
<CASH> 6360
<SECURITIES> 2075
<RECEIVABLES> 37257
<ALLOWANCES> 0
<INVENTORY> 40434
<CURRENT-ASSETS> 89503
<PP&E> 92070
<DEPRECIATION> 51473
<TOTAL-ASSETS> 136109
<CURRENT-LIABILITIES> 19537
<BONDS> 542
<COMMON> 8126
0
0
<OTHER-SE> 103033
<TOTAL-LIABILITY-AND-EQUITY> 136109
<SALES> 158721
<TOTAL-REVENUES> 158721
<CGS> 106719
<TOTAL-COSTS> 141965
<OTHER-EXPENSES> (234)
<LOSS-PROVISION> 617
<INTEREST-EXPENSE> 88
<INCOME-PRETAX> 16990
<INCOME-TAX> 6760
<INCOME-CONTINUING> 10230
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 10230
<EPS-PRIMARY> 2.41
<EPS-DILUTED> 0
</TABLE>
