SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13
OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended June 30, 1996 Commission File Number 1-7256
INTERNATIONAL ALUMINUM CORPORATION
(Exact name of Registrant as specified in its charter)
California 95-2385235
(Incorporation) (I.R.S. Employer No.)
767 Monterey Pass Road
Monterey Park, California 91754
(213) 264-1670
(Principal executive office)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class Names of Exchanges on Which Registered
Common Stock ($1.00 Par Value) New York Stock Exchange
Pacific Stock Exchange
Securities registered pursuant to Section 12(g) of the Act: 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 by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of Registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. X
At September 10, 1996 there were 4,260,180 shares of Registrant's Common
Stock outstanding. The aggregate market value of shares held by non-
affiliates was $58,646,408 based on the Composite Tape closing price on that
date.
DOCUMENTS INCORPORATED BY REFERENCE
Registrant's Annual Report to Shareholders for fiscal year ended June 30, 1996
is incorporated by reference into Parts I and II.
Registrant's Proxy Statement dated September 19, 1996 for the Annual Meeting
of Shareholders to be held on October 31, 1996 is incorporated by reference,
other than the performance graph and Compensation Committee Report, into Part
III.
<PAGE>
<PAGE> PART I
ITEM 1. BUSINESS
a. GENERAL DEVELOPMENT OF BUSINESS
International Aluminum Corporation is an integrated
manufacturer and supplier of a broad line of quality aluminum,
wood, vinyl and glass products. The Company was incorporated in
California in 1963 as successor to an aluminum fabricating
business begun in 1957 and maintains its executive offices at 767
Monterey Pass Road, Monterey Park, California 91754. The
Company's telephone number is (213) 264-1670. Reference to the
"Registrant", "International Aluminum Corporation" or the
"Company" includes International Aluminum Corporation and its
subsidiaries unless the context indicates otherwise.
b. INDUSTRY SEGMENTS, LINES OF BUSINESS AND CLASSES OF PRODUCTS
This information is included on pages 4 and 13 respectively,
of the Registrant's 1996 Annual Report to Shareholders and is
hereby incorporated by reference.
c. NARRATIVE DESCRIPTION OF BUSINESS
Processes and Products
Building Products
Residential. Residential products are fabricated from
aluminum, wood and vinyl into a broad line of horizontal sliding
windows, vertical sliding windows, casement windows, garden
windows, bay and bow windows, special configuration windows,
louvre windows, patio doors, tub enclosures, shower doors,
wardrobe mirror doors and related products. These products are
used in new residential construction and in remodeling, home
improvement and replacement.
Commercial. Commercial products are fabricated from aluminum
into curtain walls, window walls, storefront framing, entrance
doors and frames, interior doors and frames and interior wall
systems. These products are utilized in varying combinations to
produce systems used for office and commercial construction,
remodeling and tenant improvement applications.
Aluminum Extrusions. In the extrusion process, heated
aluminum billets are hydraulically forced through steel dies to
produce a piece of metal of the desired length and cross-section
shape. The extrusions are then cut and, when requested, anodized
or painted in a variety of finishes in the Company's anodizing
and painting departments.
- 1 -<PAGE>
<PAGE>
The Company currently has five extrusion presses at its
Alhambra, California plant and four presses at its plant in
Waxahachie, Texas.
Aluminum extrusions produced by the Company are used in
fabricating substantially all of its other aluminum products.
In addition, during fiscal 1996 approximately 53% of the
extrusions produced were sold to users in its own or other
industries, including manufacturers of fixtures, electronic
equipment, fitness products, sailboats, skylights and truck
bodies. The Company furnishes design services to assist its
customers in developing or better utilizing custom extrusions.
Glass Products
This product group shapes, bends, bevels, etches, polishes
and tempers bulk flat glass. The fabricated glass is primarily
utilized in the Company's store display systems and in its glass
furniture lines. Glass is also processed to customer
specifications for incorporation into their end products, which
include residential, patio and office furniture, truck and
recreational vehicle windows, light fixtures and appliances.
Sales and Distribution
The Company markets its residential products primarily to
mass merchandisers, independent dealers and distributors, with
whom the Company has no long-term contracts. Commercial building
products are marketed primarily to glazing and tenant improvement
contractors. Aluminum extrusions are marketed principally by
direct sales to other manufacturers, some of which produce
aluminum products of the Company's design. The Company's glass
products are marketed to manufacturers, distributors and
retailers.
Each of the Company's subsidiaries has its own administrative
and sales organizations. Sales are made largely in the United
States and Europe.
No customer accounted for more than 5% of net sales in 1996,
and no material part of the business is dependent upon a single
customer or a few customers, the loss of any one or more of whom
would have a materially adverse effect on the business of the
Company. The Company does business on a current basis and has
no significant backlog of unfilled firm orders.
- 2 -<PAGE>
<PAGE>
Materials
The Company purchases its aluminum ingot requirements from
primary aluminum producers or spot metal brokers. Although
increased worldwide demand produces periods of tight supply of
aluminum ingot and scrap, the Company has had satisfactory
experience to date in obtaining sufficient raw materials to meet
its requirements and does not anticipate material shortages which
would significantly hamper its operations.
Flat glass is purchased from domestic glass manufacturers.
The Company has had satisfactory experience to date in obtaining
sufficient glass to meet its requirements.
The Company produces the aluminum extrusions used in the
products it manufactures and sells. Wood, vinyl, hardware,
fasteners and screening are purchased from outside sources.
Seasonality
Sales of products designed for residential and commercial
applications are subject to cyclical swings in new construction
and seasonal fluctuations due to reduced construction activity
in some marketing areas during the winter months (second and
third quarters).
Working Capital
To maintain an adequate supply of aluminum to meet customer
delivery requirements and to assure itself of a continuous
allotment of materials from its suppliers, the Company at times
carries a significant inventory of aluminum ingot. Depending on
price and availability, bulk quantities of ingot are purchased
from either primary aluminum producers or from spot metal
brokers.
The Company does not believe there are any abnormal working
capital requirements associated with any of its product groups
as merchandise is normally produced for specific customer orders
or shipped from inventory and as a general practice extended
payment terms are not granted to customers.
Patents
The Company has no material patents, either issued or
pending, and is not a party to any significant licensing
agreements.
- 3 -<PAGE>
<PAGE>
Competition and Risk
The business of International Aluminum is highly competitive.
Competition in all product lines is on the basis of price,
service and product quality. The manner and extent of such
competition depends on the product being marketed and the
relevant marketing area. In selling its residential products to
mass merchandisers, dealers and distributors, the Company faces
competition primarily from numerous fabricators. Several of the
Company's major competitors in selling commercial products and
aluminum extrusions are substantially larger, more diversified
and have greater resources than the Company.
The Company anticipates that expansion of its product lines
may result in its competing with certain of its present
customers. While the Company cannot accurately predict the
effect, if any, that such development will have on its business,
the Company anticipates no material adverse effect.
Since a substantial portion of the Company's business is
connected with residential and commercial building construction,
any significant decrease in new or remodeling construction could
adversely affect revenues. Experience has shown that high
interest rates for construction financing and residential
mortgage and home improvement loans may adversely affect
revenues.
Environmental Controls
The Company's domestic aluminum extrusion, anodizing,
painting and manufacturing facilities are subject to water and
air pollution control standards mandated by federal, state and
local law. While the Company anticipates no material capital
expenditures to meet established environmental quality control
standards, there can be no assurance that more stringent
standards will not be established which might require such
expenditures.
Employees
As of June 30, 1996, the Company had approximately 2,000
full-time employees.
d. FINANCIAL INFORMATION ABOUT FOREIGN AND DOMESTIC OPERATIONS
The information concerning sales, net income and identifiable
assets of foreign and domestic operations for fiscal years 1996,
1995 and 1994 is set forth in Note 9 to the consolidated
financial statements included on page 13 of the Company's 1996
Annual Report incorporated herein by reference.
- 4 -<PAGE>
<PAGE> <TABLE>
ITEM 2. PROPERTIES
The following table sets forth information concerning the
location, size and use of the Company's present facilities:
<CAPTION>
Square
Location Feet (1) Use
<S> <C> <C>
Building Products:
Alhambra, California 221,000 Aluminum extrusions,
foundry & finishing
Waxahachie, Texas 272,000 Aluminum extrusions,
foundry & finishing
South Gate, California 189,000 Residential products
Hayward, California 103,000 Residential products
Phoenix, Arizona 100,000 Residential products
Moreno Valley, California 67,000 Residential products
Vernon, California 134,000 Commercial products
Hayward, California 14,000(L) Commercial products
Seattle, Washington 15,000(L) Commercial products
Bedford Park, Illinois 81,000 Commercial products
Baltimore, Maryland 16,000(L) Commercial products
Boston, Massachusetts 21,000(L) Commercial products
Waxahachie, Texas 159,000 Commercial products
Denver, Colorado 16,000(L) Commercial products
Dallas, Texas 17,000(L) Commercial products
Rock Hill, South Carolina 74,000 Commercial products
Orlando, Florida 14,000(L) Commercial products
Atlanta, Georgia 18,000(L) Commercial products
Houston, Texas 57,000 Commercial products
Dallas, Texas 15,000 Commercial products
Waxahachie, Texas 60,000 Commercial products
Amsterdam, The Netherlands 165,000 Commercial and
residential products
Glass Products:
South Gate, California 65,000(L) Glass fabrication
Rock Hill, South Carolina 84,000 Glass fabrication
Administration:
Monterey Park, California 19,000(L) Executive offices
<FN>
______________________
(1) Includes manufacturing, warehouse and office space; excludes
construction in process, parking and yard storage space.
(L) Indicates leased premises.
Of the 1,996,000 square feet exhibited above, 1,781,000 square
feet are owned by the Company. The balance of 215,000 square feet
is leased under agreements expiring at various dates. The Company
believes that its facilities are adequate for anticipated levels of
operations.
</TABLE> - 5 -<PAGE>
<PAGE>
ITEM 3. LEGAL PROCEEDINGS
The Company has litigation pending, both offensive and
defensive, arising from the conduct of its business, none of
which are expected to have any material effect on the Company's
financial position.
ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
No matters have been submitted to a vote of security holders
which are required to be reported under the instructions to this
item.
- 6 -<PAGE>
<PAGE>
PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON STOCK AND RELATED
STOCKHOLDER MATTERS
The market and dividend information is included on pages 14
and 16 of the Company's 1996 Annual Report to Shareholders and
is incorporated herein by reference.
There are no restrictions of future cash dividends.
There were approximately 600 shareholders of record of the
Company's common stock at June 30, 1996.
ITEM 6. SELECTED FINANCIAL DATA
Selected financial data pertaining to the Company for the
last five years is set forth on page 4 of the Company's 1996
Annual Report to Shareholders and is incorporated herein by
reference.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
This information is set forth on pages 2 through 5 of the
Company's 1996 Annual Report to Shareholders and is incorporated
herein by reference.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
See Part IV, Item 14.
ITEM 9. DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE
There have been no disagreements which are required to be
reported under the instructions to this item.
PART III
The information required under Part III is contained in the
Company's Proxy Statement for the Annual Meeting of Shareholders
to be held October 31, 1996, which information is incorporated
herein by reference.
- 7 -<PAGE>
<PAGE>
PART IV
ITEM 14. EXHIBITS, FINANCIAL STATEMENT SCHEDULES AND REPORTS ON FORM 8-K
Page
(a) 1. Financial Statements
Consolidated Financial Statements (See Note):
Balance sheets - June 30, 1996 and 1995
Statements for the three years ended June 30, 1996 -
Income
Shareholders' equity
Cash flows
Notes to consolidated financial statements
2. Financial Statement Schedules
Report of Independent Accountants on Financial
Statement Schedules F-1
Schedule for the three years ended June 30, 1996 -
II Valuation and qualifying accounts F-2
3. Exhibits
3. Articles of incorporation and by-laws. This information is set
forth as Exhibits 2.2 and 2.3 to the September 9, 1977 Registration
Statement on Form S-7, and was amended by Proxy Statements dated
September 26, 1978 and September 21, 1988 furnished to shareholders
in connection with the related Annual Meeting of Shareholders held
on October 26, 1978 and October 27, 1988, respectively. These
documents were filed by the Registrant with the Securities and
Exchange Commission and are incorporated herein by reference.
4. Instruments defining the rights of security holders, including
indentures. This information is set forth on page 10 of the August
1, 1968 Registration Statement on Form S-1, as amended, filed by the
Registrant with the Securities and Exchange Commission and is
incorporated herein by reference.
13. Annual Report to Shareholders.
22. Subsidiaries of the registrant.
23. Consent of Price Waterhouse LLP (included on page F-1 herein).
27. Financial Data Schedule.
(b) No reports on Form 8-K were required to be filed during the last
quarter of 1996.
NOTE: The consolidated statements referred to above are included in the
1996 Annual Report to Shareholders and are incorporated herein by
reference.
- 8 -<PAGE>
<PAGE> <TABLE>
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities
Exchange Act of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned, thereto duly authorized.
INTERNATIONAL ALUMINUM CORPORATION
Date: September 19, 1996 By: DAVID C. TREINEN
David C. Treinen
Senior Vice President-Finance and
Administration; Secretary and
Chief Financial Officer
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on behalf of the
Registrant and in the capacities and on the dates indicated.
<CAPTION>
Signature Title Date
<S> <C> <C>
CORNELIUS C. VANDERSTAR Chairman of the Board and September 19, 1996
Cornelius C. Vanderstar Chief Executive Officer
JOHN P. CUNNINGHAM Director; President and September 19, 1996
John P. Cunningham Chief Operating Officer
DAVID C. TREINEN Director; Senior Vice September 19, 1996
David C. Treinen President-Finance and
Administration; Secretary
and Chief Financial Officer
MITCHELL K. FOGELMAN Vice President-Controller; September 19, 1996
Mitchell K. Fogelman and Chief Accounting Officer
HUGH E. CURRAN Director September 19, 1996
Hugh E. Curran
JOEL F. McINTYRE Director September 19, 1996
Joel F. McIntyre
ALEXANDER VAN DE POL Director September 19, 1996
Alexander van de Pol
DONALD J. WILLFONG Director September 19, 1996
Donald J. Willfong
</TABLE>
- 9 -<PAGE>
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS ON
FINANCIAL STATEMENT SCHEDULE
To the Board of Directors of
International Aluminum Corporation
Our audits of the consolidated financial statements referred to
in our report dated August 20, 1996 appearing on page 15 of the
1996 Annual Report to Shareholders of International Aluminum
Corporation (which report and consolidated financial statements
are incorporated by reference in this Annual Report on Form 10-K)
also included an audit of the Financial Statement Schedule listed
in Item 14(a)2 of this Form 10-K. In our opinion, this Financial
Statement Schedule presents fairly, in all material respects, the
information set forth therein when read in conjunction with the
related consolidated financial statements.
PRICE WATERHOUSE LLP
Los Angeles, California
August 20, 1996
Exhibit 23
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference in the
Registration Statement on Form S-8 (No. 33-57109) of
International Aluminum Corporation of our report dated August 20,
1996 appearing on page 15 of the Annual Report to Shareholders
which is incorporated in this Annual Report on Form 10-K. We
also consent to the incorporation by reference of our report on
the Financial Statement Schedule which appears on page F-1 of
this Form 10-K.
PRICE WATERHOUSE LLP
Los Angeles, California
September 19, 1996
F-1<PAGE>
<PAGE>
<TABLE>
INTERNATIONAL ALUMINUM CORPORATION AND SUBSIDIARIES
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
For The Three Years Ended June 30, 1996
<CAPTION>
Balance at Amounts Amounts Balance at
Beginning Charged Written End
Description of Year to Income Off of Year
<S> <C> <C> <C> <C>
Reserves for
doubtful accounts
1996 $773,000 $394,000 $596,000 $571,000
1995 815,000 376,000 418,000 773,000
1994 673,000 647,000 505,000 815,000
</TABLE>
F-2<PAGE>
<PAGE>
INTERNATIONAL ALUMINUM CORPORATION
SUBSIDIARIES
The following is a list of the significant subsidiaries of the
Registrant and the jurisdiction under which each is organized. The
Company owns 100 percent of the voting securities of each such
subsidiary.
Jurisdiction of
Name of Subsidiary Organization
International Window Corporation California
International Extrusion Corporation California
United States Aluminum Corporation California
General Window Corporation* California
International California Glass Corporation California
United States Aluminum Corporation-Illinois California
International Window-Arizona, Inc. California
United States Aluminum Corporation-Texas Texas
International Extrusion Corporation-Texas California
United States Aluminum Corporation-Carolina California
International Carolina Glass Corporation California
Ragland Manufacturing Company, Inc. Texas
Maestro Products, Inc. California
Eland-Brandt, B.V. The Netherlands
______________________________________________
* dba International Window-Northern California
Exhibit 22
INTERNATIONAL
ALUMINUM
CORPORATION
1996 ANNUAL REPORT
<PAGE>
<PAGE>
COMPANY PROFILE
INTERNATIONAL ALUMINUM CORPORATION is an integrated manufacturer and supplier
of a broad line of quality aluminum, wood, vinyl and glass products. The
Company is headquartered in Monterey Park, California and has approximately
2,000 employees. Operations are conducted through thirteen domestic
subsidiaries and one international subsidiary.
COMMERCIAL PRODUCTS - Curtain walls, window walls, storefront framing,
entrance doors and frames, interior doors and frames and interior glazing
systems.
RESIDENTIAL PRODUCTS - Aluminum, wood, vinyl and composite products including
horizontal sliding windows, vertical sliding windows, casement windows,
garden windows, bay and bow windows, special configuration windows, louvre
windows, patio doors, wardrobe mirror doors, tub enclosures and shower doors.
ALUMINUM EXTRUSIONS - Mill finish, anodized, painted and fabricated
extrusions.
GLASS PRODUCTS - Innovative store display systems. Fabrication, tempering
and etching of flat glass. Distinctive lines of glass furniture.
TABLE OF CONTENTS
Financial Highlights
Letter to Shareholders
Selected Financial Data
Management's Discussion and Analysis of
Financial Condition and Results of Operations
Consolidated Financial Statements
Notes to Consolidated Financial Statements
Quarterly Stock Information
Report of Independent Accountants
Corporate Information
List of Subsidiaries
<PAGE>
<PAGE>
<TABLE>
FINANCIAL HIGHLIGHTS
Fiscal Years Ended June 30, 1996, 1995 and 1994
<CAPTION>
1996 1995 1994
<S> <C> <C> <C>
Net sales $215,573,000 $210,906,000 $174,773,000
Income from operations $ 12,565,000 $ 22,034,000 $ 11,128,000
Net income $ 7,597,000 $ 13,502,000 $ 8,795,000
Per Share Data:
Net income $1.78 $3.18 $2.08
Dividends $1.00 $1.00 $1.00
Stock Information At Year End:
Book value $27.44 $26.75 $24.45
Stock price $25 1/4 $31 3/4 $24 1/8
Price-Earnings ratio 14.2 10.0 11.6
</TABLE>
<PAGE>
<PAGE>
TO OUR SHAREHOLDERS
Fiscal 1996 turned out to be a year of many disappointments for International
Aluminum, the greatest of which has been our continued inability to restore
our residential window and door companies to anywhere near their former
levels of revenue and excellent profitability. A continuing low level of
housing starts in our California home market coupled with increasing inroads
made by lower margin vinyl windows have wrecked havoc with results from what
had in the past been a cornerstone of our business. Somewhat offsetting our
residential decline has been the continued ascendancy of our Commercial
Products Group on a track that is making it a national powerhouse in the
commercial glazing industry.
Our aluminum extrusion operations in both California and Texas were also a
disappointment in the past year. Whereas in fiscal 1995 they benefitted from
rising aluminum prices and resultantly healthy margins, the opposite trend
occurred in most of the year just passed. Capital expenditures made in Texas
for additional extrusion equipment and for the reconstruction of the older
of our two anodizing lines have turned out to be well spent in light of the
greater production demands placed on that facility by the continuing
expansion of United States Aluminum's extrusion and finishing requirements.
It is unfortunate that in the United States as opposed to most of the rest
of the world cutthroat competitive pricing has been and continues to be the
norm in the aluminum extrusion business. Given the heavy investment in plant
and equipment that this line of business requires, the returns that can be
achieved from it are meager even in the best of times. It is, however,
necessary that we remain in it in order to provide a controlled supply to our
own extrusion consuming subsidiaries.
As touched on earlier our United States Aluminum Commercial Products Group
continues to thrive. Additional satellite service centers were opened during
the year and now total nine. This program has given us a presence in major
market centers and has enabled us to provide an improved level of customer
service while retaining and in some cases improving margins. We are
currently exploring additional opportunities both within as well as outside
of the United States in order to further expand this growing and lucrative
segment of our business.
The performance of our two glass fabricating companies left much to be
desired. Sales were down in total about 4 percent and collective profits all
but disappeared. International California Glass, with its emphasis on
display systems and industrial glass, did somewhat better than South Carolina
which has relied more heavily on currently out of fashion Glass Arts
furniture. We are redoubling our efforts to direct South Carolina into other
fabricated glass markets. Should this effort be unsuccessful, we will be
forced to consider other alternatives.
<PAGE>
<PAGE>
The decline in income from our Residential Products Group continues to
present our greatest challenge. This has been magnified by extremely poor
results from Maestro Products, our wood window and door company now relocated
to Moreno Valley, California. We are in the process there of introducing a
redesigned and more competitive product line and have made organizational
changes in an attempt to staunch the flow of red ink. Our aluminum and now
vinyl product companies in California and Arizona continue to operate
profitably but at significantly lower volume levels than in years gone by.
Much of the problem stems from the dramatically lower level of current
residential construction activity in California. By way of example: In the
six counties comprising Southern California, the annual total of residential
new housing building permits issued in the late 1980's averaged 151,000 per
year. In the twelve months ended June 30, 1996, only 38,828 permits were
issued - down almost 75 percent!
Ragland Manufacturing in Houston had its best year ever. Sales of its line
of interior door frames and wall systems have remained heavily concentrated
in Texas and the Southwest. In an attempt to broaden its geographical
markets, we have embarked on a national advertising program which we hope
will bear fruit in the years to come.
The financial health of the Company continues to be excellent with an
extremely strong balance sheet. We are now carrying no long-term debt and
our current ratio remains virtually unchanged at 4.5 to 1. Shareholders'
equity stood at just under $117 million at yearend and working capital
increased to $71.9 million. Capital spending during the past year totalled
$5.7 million with the largest single expenditure being the acquisition of
automated vinyl window manufacturing equipment for both our Southern and
Northern California residential plants. During this coming year we should
complete the implementation of new integrated computer software throughout
all of our operating subsidiaries. This software will assist us in further
tightening the control of our manufacturing processes, greatly enhance our
level of customer service and provide the flexibility needed to meet the
challenges of the future.
CORNELIUS C. VANDERSTAR JOHN P. CUNNINGHAM
Cornelius C. Vanderstar John P. Cunningham
Chairman President
September 3, 1996<PAGE>
<PAGE>
<TABLE>
SELECTED FINANCIAL DATA
<CAPTION>
Year Ended June 30 1996 1995 1994 1993 1992
<S> <C> <C> <C> <C> <C>
Sales and Earnings -
Building products
Commercial $ 97,801,000 $ 87,002,000 $ 66,843,000 $ 60,340,000 $ 62,179,000
Residential 51,879,000 53,108,000 52,081,000 49,308,000 52,696,000
Extrusions 49,462,000 53,747,000 38,616,000 28,585,000 28,963,000
199,142,000 193,857,000 157,540,000 138,233,000 143,838,000
Glass products 16,431,000 17,049,000 17,233,000 13,962,000 14,485,000
Total net sales $215,573,000 $210,906,000 $174,773,000 $152,195,000 $158,323,000
Income before
accounting change $ 7,597,000 $ 13,502,000 $ 7,365,000 $ 3,602,000 $ 876,000
Accounting change 1,430,000
Net income $ 7,597,000 $ 13,502,000 $ 8,795,000 $ 3,602,000 $ 876,000
Per share:
Income before
accounting change $1.78 $3.18 $1.74 $ .85 $ .21
Accounting change .34
Net income $1.78 $3.18 $2.08 $ .85 $ .21
Dividends declared $1.00 $1.00 $1.00 $1.00 $1.00
Average shares outstanding 4,257,473 4,240,371 4,226,733 4,219,401 4,211,372
Financial Data at Year End -
Working capital $ 71,896,000 $ 68,395,000 $ 63,452,000 $ 61,447,000 $ 61,044,000
Total assets 141,843,000 138,104,000 129,030,000 123,938,000 122,286,000
Long-term debt 542,000 1,103,000 1,665,000 2,226,000
Shareholders' equity 116,882,000 113,771,000 103,435,000 98,947,000 99,427,000
</TABLE>
<PAGE>
MANAGEMENT'S DISCUSSION AND ANALYSIS OF
FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Significant Changes in Results of Operations
1996 vs. 1995
Fiscal year 1996 net sales increased by $4,667,000 or 2.2% from the
fiscal year 1995 level. This increase is comprised of a $3,106,000
increase in domestic sales and a $1,561,000 increase in foreign sales.
The overall sales increase was driven by a $10,799,000 or 12.4%
increase in sales of commercial products reflecting the increased
demand for these products in the southern and eastern regions of the
United States. Partially offsetting this were the $4,285,000 or 8.0%
decrease in sales by the Aluminum Extrusion Group, resulting from
reduced sales volume into the West Coast marketing area, and a
$1,229,000 or 2.3% decrease in sales by the Residential Products Group
into the Southern California area.
Gross profit was 27.8% of sales in 1996 as compared with 32.2% in
1995. This decrease is primarily attributable to significantly
decreased margins in the Aluminum Extrusion Group resulting from lower
volume and declining prices. Also, as a result of increased material
costs and lower sales volume, decreased margins were experienced by
the Company's Residential Products Group.
Selling, general and administrative expenses were 22.0% of sales in
1996 as compared with 21.8% in 1995. Expenses in the current year
have risen by $1,421,000 primarily due to additional selling costs
associated with the expansion of the Commercial Products Group
satellite warehouse program.
The decrease in investment income relates to significant increases in
the market values of interest rate sensitive securities during the
prior year.
1995 vs. 1994
Net sales for fiscal 1995 increased by $36,133,000 or 20.7% from net
sales of fiscal 1994. The entire increase results from increased
domestic sales activity where significant increases were posted by the
Commercial Products Group and the Aluminum Extrusion Group. Sales of
commercial products increased 30.1% reflecting the increased demand
for the Company's products in the southwestern and eastern regions of
the United States. The Aluminum Extrusion Group sales increased 39.2%
reflecting both significantly higher selling prices related to the
dramatic rise in aluminum costs and substantially increased volume of
sales into the southwestern states marketing area.
Cost of sales decreased to 67.8% of sales in 1995 as compared with
70.8% in 1994. This decrease is primarily attributable to decreases
in labor and overhead cost percentages in the Aluminum Extrusion Group
resulting from rising prices and increased volume. These increases
were offset during the second half of the year by increased material
costs.
Selling, general and administrative expenses were 21.8% of sales in
1995 as compared with 22.8% in 1994. Expenses in the current year
have risen by $6,010,000 primarily associated with the increased
volumes of business.
The increase in investment income relates to increases in the market
values of interest rate sensitive securities during the year.
Inflation
Because the Company's products are predominately made-to-order, the
impact of inflation on operating results is typically not significant.
The Company attempts to alleviate inflationary pressures by increasing
selling prices to help offset rising costs (subject to competitive
conditions), increasing productivity and improving design.
Liquidity and Capital Resources
Working capital at June 30, 1996 was $71,896,000, an increase of
$3,501,000 over the June 30, 1995 level and an increase of $8,444,000
over the June 30, 1994 level. The ratio of current assets to current
liabilities was 4.5 at the end of 1996 compared to 4.6 at the end of
1995 and 4.2 at the end of 1994. The Company continues to be in
excellent position to meet its short-term operating and discretionary
cash requirements. Funds in excess of current operating requirements
are invested in marketable securities and short-term interest-bearing
instruments.
Capital expenditures for property, plant and equipment of
approximately $ 5,680,000 in 1996, $11,886,000 in 1995 and $4,559,000
in 1994 were financed through internal cash flow. The Company's
projected capital expenditures for fiscal 1997 include $6,000,000 for
scheduled expansion of production capacity in addition to the normal
annual expenditures for replacement items. The Company anticipates
financing these expenditures through internal cash flow.
The Company had $10,000,000 in available credit at the end of 1996
under a short-term borrowing arrangement with a bank.
The Company's financial condition remains strong. The Company
believes that its cash, other liquid assets, operating cash flows and
borrowing capacity taken together provide more than adequate resources
to fund ongoing operating requirements and future capital expenditures
related to the expansion of existing businesses.<PAGE>
<PAGE>
<TABLE>
CONSOLIDATED BALANCE SHEETS
June 30, 1996 and 1995
<CAPTION>
Assets 1996 1995
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 13,230,000 $ 3,550,000
Investments 2,213,000
Accounts receivable, less reserve of
$571,000 in 1996 and $773,000 in 1995 34,498,000 34,877,000
Unbilled receivables 823,000 1,222,000
Inventories 39,582,000 41,773,000
Prepaid expenses 2,712,000 2,060,000
Future income tax benefits 1,350,000 1,596,000
Total current assets 92,195,000 87,291,000
Property, plant and equipment, at cost:
Land 8,161,000 8,195,000
Buildings and improvements 30,513,000 29,374,000
Machinery and equipment 59,577,000 56,080,000
Construction in process 47,000 3,763,000
98,298,000 97,412,000
Accumulated depreciation (53,356,000) (52,567,000)
44,942,000 44,845,000
Other assets:
Costs in excess of net assets of purchased businesses 4,706,000 4,839,000
Other 1,129,000
4,706,000 5,968,000
$141,843,000 $138,104,000
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
CONSOLIDATED BALANCE SHEETS
June 30, 1996 and 1995
<CAPTION>
Liabilities and Shareholders' Equity 1996 1995
<S> <C> <C>
Current liabilities:
Accounts payable $ 9,648,000 $ 7,820,000
Accrued liabilities 9,343,000 9,555,000
Current portion of long-term debt 542,000 423,000
Income taxes payable 766,000 1,098,000
Total current liabilities 20,299,000 18,896,000
Long-term debt 542,000
Other liabilities:
Deferred income taxes 4,337,000 4,496,000
Other 325,000 399,000
4,662,000 4,895,000
Commitments (Note 6)
Shareholders' equity:
Capital Stock -
Preferred, $10.00 par value -
Authorized - 500,000 shares
Outstanding - none
Common, $1.00 par value -
Authorized - 10,000,000 shares
Outstanding - 4,260,180 shares in 1996
and 4,252,789 shares in 1995 4,734,000 4,726,000
Paid-in capital 3,719,000 3,612,000
Retained earnings, including cumulative
translation adjustment of $2,687,000
in 1996 and $3,029,000 in 1995 108,429,000 105,433,000
116,882,000 113,771,000
$141,843,000 $138,104,000
</TABLE>
<PAGE>
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF INCOME
For the years ended June 30, 1996, 1995 and 1994
<CAPTION>
1996 1995 1994
<S> <C> <C> <C>
Net sales $215,573,000 $210,906,000 $174,773,000
Cost of sales 155,657,000 142,942,000 123,725,000
Gross profit 59,916,000 67,964,000 51,048,000
Selling, general and administrative expenses 47,351,000 45,930,000 39,920,000
Income from operations 12,565,000 22,034,000 11,128,000
Investment income 311,000 580,000 479,000
Interest expense (109,000) (92,000) (102,000)
Income before income taxes and cumulative effect of
accounting change 12,767,000 22,522,000 11,505,000
Provision for income taxes 5,170,000 9,020,000 4,140,000
Income before cumulative effect of accounting change 7,597,000 13,502,000 7,365,000
Cumulative effect of accounting change for income taxes 1,430,000
Net income $ 7,597,000 $ 13,502,000 $ 8,795,000
Earnings per share:
Income before cumulative effect of accounting change $1.78 $3.18 $1.74
Cumulative effect of accounting change .34
Net income $1.78 $3.18 $2.08
</TABLE>
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
For the years ended June 30, 1996, 1995 and 1994
<CAPTION>
Common Stock
Number Paid-in Retained
of Shares Amount Capital Earnings Total
<S> <C> <C> <C> <C> <C>
Balance, June 30, 1993 4,220,463 $4,694,000 $3,230,000 $ 91,023,000 $ 98,947,000
Exercise of stock options 10,317 10,000 129,000 139,000
Translation adjustment (218,000) (218,000)
Cash dividends (4,228,000) (4,228,000)
Net income 8,795,000 8,795,000
Balance, June 30, 1994 4,230,780 4,704,000 3,359,000 95,372,000 103,435,000
Exercise of stock options 22,009 22,000 253,000 275,000
Translation adjustment 801,000 801,000
Cash dividends (4,242,000) (4,242,000)
Net income 13,502,000 13,502,000
Balance, June 30, 1995 4,252,789 4,726,000 3,612,000 105,433,000 113,771,000
Exercise of stock options 7,391 8,000 107,000 115,000
Translation adjustment (342,000) (342,000)
Cash dividends (4,259,000) (4,259,000)
Net income 7,597,000 7,597,000
Balance, June 30, 1996 4,260,180 $4,734,000 $3,719,000 $108,429,000 $116,882,000
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
For the years ended June 30, 1996, 1995 and 1994
<CAPTION>
1996 1995 1994
<S> <C> <C> <C>
Cash flows from operating activities:
Net income $ 7,597,000 $13,502,000 $ 8,795,000
Adjustments for noncash transactions:
Depreciation and amortization 5,204,000 4,793,000 4,696,000
Change in deferred income taxes 87,000 (240,000) (699,000)
Change in accounting for income taxes (1,430,000)
Changes in assets and liabilities:
Receivables 501,000 261,000 (4,883,000)
Inventories 2,107,000 (12,844,000) (2,846,000)
Prepaid expenses and other 455,000 (419,000) (1,020,000)
Accounts payable 1,968,000 (859,000) 646,000
Accrued liabilities and other (191,000) 539,000 221,000
Income taxes payable (333,000) (670,000) 1,871,000
Net cash provided by operating activities 17,395,000 4,063,000 5,351,000
Cash flows from investing activities:
Capital expenditures (5,680,000) (11,886,000) (4,559,000)
Proceeds from sales of capital assets 337,000 2,530,000 170,000
Changes in investments 2,213,000 7,074,000 (446,000)
Net cash used in investing activities (3,130,000) (2,282,000) (4,835,000)
Cash flows from financing activities:
Repayment of long-term debt (423,000) (700,000) (422,000)
Exercise of stock options 115,000 275,000 139,000
Dividends paid to shareholders (4,259,000) (4,242,000) (4,228,000)
Net cash used in financing activities (4,567,000) (4,667,000) (4,511,000)
Effect of exchange rate changes on cash (18,000) 23,000 (5,000)
Net change in cash and cash equivalents 9,680,000 (2,863,000) (4,000,000)
Cash and cash equivalents at beginning of year 3,550,000 6,413,000 10,413,000
Cash and cash equivalents at end of year $13,230,000 $ 3,550,000 $ 6,413,000
<FN>
See accompanying notes to consolidated financial statements.
</TABLE>
<PAGE>
<PAGE>
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Note 1. Significant accounting policies and procedures -
(a) Principles of consolidation
The accompanying consolidated financial statements include the accounts of
the Company and all its domestic and foreign subsidiaries. All significant
intercompany transactions and accounts have been eliminated in consolidation.
To expedite reporting, the Company follows the practice of consolidating its
foreign subsidiary using a year ending one month prior to the June 30th year
end of its domestic subsidiaries.
The preparation of the consolidated financial statements in conformity with
generally accepted accounting principles requires management to make
estimates and assumptions that affect the amounts reported in the financial
statements and accompanying notes. Actual results could differ from those
estimates.
(b) Cash, cash equivalents and investments
Cash and cash equivalents include cash on hand and marketable securities with
original maturities of three months or less.
Investments include preferred stocks which are classified as trading
securities but are not considered to be cash equivalents as they are
susceptible to significant market value changes. Investment income includes
unrealized holding gains/(losses) of $14,000 in 1996, $8,000 in 1995 and
($581,000) in 1994.
(c) Long-term contracts
Certain sales of the Company's Netherlands subsidiary, Eland- Brandt, B.V.,
are made under contracts covering extended periods of time. These contracts
are accounted for by the percentage-of-completion method on the basis of
total costs of shipments compared to total estimated costs. Costs and
estimated earnings in excess of billings on uncompleted contracts are
classified as "Unbilled receivables". It is anticipated that all such
receivables will be collected within one year.
(d) Inventories
Inventories, stated at the lower of cost (first-in, first-out) or market, are
summarized as follows:
1996 1995
Raw materials $29,667,000 $31,002,000
Work in process 2,252,000 3,463,000
Finished goods 7,663,000 7,308,000
$39,582,000 $41,773,000
(e) Depreciation and amortization policies
Depreciation and amortization are provided over the estimated useful lives of
the assets or the remaining terms of the leases, whichever is shorter, using
the straight-line method for financial reporting purposes and accelerated
methods for tax purposes.
The excess of the purchase price over the underlying book value of the
companies acquired is classified as "Costs in excess of net assets of
purchased businesses." The related amounts of $6,095,000 are generally being
amortized using the straight-line method over periods of up to forty years.
Accumulated amortization totalled $1,389,000 at June 30, 1996 and $1,256,000
at June 30, 1995.
Note 2. Earnings per common share -
Earnings per share are based upon the weighted average number of common and
common equivalent shares outstanding during the year. Common equivalent
shares are excluded from the computation in the periods in which they have an
antidilutive effect. Earnings per share have been computed based upon
4,257,473 shares in 1996, 4,240,371 shares in 1995 and 4,226,733 shares in
1994.
Note 3. Statement of Cash Flows -
Cash payments for interest were $140,000 in 1996, $181,000 in 1995 and
$81,000 in 1994. Cash payments for income taxes were $5,496,000 in 1996,
$9,876,000 in 1995 and $2,957,000 in 1994.
Note 4. Short-term debt and line of credit -
The Company has a loan agreement with a domestic bank providing for a
$10,000,000 unsecured short-term line of credit at 55 basis points below the
bank's prevailing prime interest rate (7.70 percent at June 30, 1996). There
was no amount outstanding under the agreement at June 30, 1996.
Note 5. Accrued liabilities -
Components of accrued liabilities at June 30, 1996 and 1995 are:
1996 1995
Wages and compensated absences $4,129,000 $4,515,000
Taxes, other than income taxes 1,384,000 1,281,000
Insurance 987,000 1,151,000
Dividends 1,065,000 1,063,000
Other 1,778,000 1,545,000
$9,343,000 $9,555,000
Note 6. Commitments -
The Company is committed under lease agreements expiring at various dates to
2001. Certain of the leases have renewal options for periods ranging from
two to five years and others provide for rent revisions at various dates.
Under the leases the Company is obligated to pay property taxes, insurance
and maintenance. All facility leases are classified as operating leases.
Real property rental expense was $751,000 in 1996, $705,000 in 1995 and
$645,000 in 1994. Real property rental commitments for the next five fiscal
years are $774,000 in 1997, $706,000 in 1998, $549,000 in 1999, $370,000 in
2000 and $188,000 in 2001.
Note 7. Stock options -
At June 30, 1996 there were 535,704 common shares reserved and available for
issuance to certain executive and managerial employees under the Company's
Stock Option Plans. Options have a term of ten years and generally become
exercisable over a five year period.
At June 30, 1996 there were 249,704 incentive stock options outstanding, of
which 35,704 were exercisable. Payment upon exercise may be either cash or
the delivery of Company common stock of equivalent value. Shares surrendered
by optionees (319 shares in 1996 and 7,253 in 1995) are immediately retired.
The transactions for shares under options for the two years ended
June 30, 1996 were:
Option price Number of
per share shares
Outstanding, June 30, 1994 $15.38 72,676
Exercised 15.38 (29,262)
Outstanding, June 30, 1995 15.38 43,414
Granted 28.00 214,000
Exercised 15.38 (7,710)
Outstanding, June 30, 1996 $15.38-28.00 249,704
<TABLE>
Note 8. Income taxes -
The components of income before United States and foreign income taxes are:
<CAPTION>
1996 1995 1994
<S> <C> <C> <C>
Domestic $13,352,000 $23,290,000 $12,210,000
Foreign (585,000) (768,000) (705,000)
$12,767,000 $22,522,000 $11,505,000
The provision for income taxes is comprised of the following:
1996 1995 1994
Current -
Federal $ 4,448,000 $ 8,055,000 $ 4,142,000
State 635,000 1,205,000 770,000
Foreign (73,000)
5,083,000 9,260,000 4,839,000
Deferred -
Federal 114,000 (220,000) (588,000)
State (27,000) (20,000) (73,000)
Foreign (38,000)
87,000 (240,000) (699,000)
$ 5,170,000 $ 9,020,000 $ 4,140,000
</TABLE>
<TABLE>
Deferred income taxes result from temporary differences in the recognition of income and expenses for tax
and financial statement purposes. The tax effects of the significant temporary differences which comprise
the deferred tax assets and liabilities at yearend are as follows:
<CAPTION>
1996 1995 1994
<S> <C> <C> <C>
Accounts receivable $ 228,000 $ 312,000 $ 316,000
Inventory 415,000 445,000 309,000
Accrued liabilities 688,000 653,000 623,000
Other 19,000 186,000 78,000
Net deferred tax asset $ 1,350,000 $ 1,596,000 $ 1,326,000
Property, plant and equipment $ 4,141,000 $ 4,387,000 $ 4,389,000
Other 196,000 109,000 77,000
Net deferred tax liability $ 4,337,000 $ 4,496,000 $ 4,466,000
A reconciliation between the provisions for income taxes, computed by applying the Federal statutory rate
to income before taxes, and the book provisions for income taxes follows:
1996 1995 1994
Taxes on book income at statutory rate $ 4,468,000 $ 7,883,000 $ 3,912,000
Increases (decreases) resulting from:
State income taxes, net of Federal income tax benefit 395,000 770,000 460,000
Other 307,000 367,000 (232,000)
Provision for income taxes $ 5,170,000 $ 9,020,000 $ 4,140,000
<FN>
In July 1993, the Company adopted Statement of Financial Accounting Standards No. 109 (FAS 109), "Accounting
for Income Taxes" and recorded a tax benefit of $1,430,000 or $.34 per share, which represented the net
decrease to the deferred tax liability as of that date. This amount was reflected in fiscal year 1994 net
income as the cumulative effect of a change in accounting principle.
No provision for U.S. taxes has been made for undistributed earnings of the foreign subsidiary since it is
expected that the major portion of such earnings will continue to be reinvested for an indefinite period of
time.
</TABLE>
<TABLE>
Note 9. Segment and geographical information -
The Company is a vertically integrated manufacturer of building products with international operations in
The Netherlands.
Sales, net income and identifiable assets for domestic and foreign operations for the last three years are
as follows:
<CAPTION>
1996 1995 1994
<S> <C> <C> <C>
Sales:
United States $202,220,000 $199,114,000 $163,238,000
Foreign 13,353,000 11,792,000 11,535,000
$215,573,000 $210,906,000 $174,773,000
Net income:
United States $ 8,184,000 $ 14,270,000 $ 9,390,000
Foreign (587,000) (768,000) (595,000)
$ 7,597,000 $ 13,502,000 $ 8,795,000
Identifiable assets:
United States $134,823,000 $129,934,000 $121,127,000
Foreign 7,020,000 8,170,000 7,903,000
$141,843,000 $138,104,000 $129,030,000
<FN>
The Company's equity investment in its consolidated foreign subsidiary was $4,360,000 at June 30, 1996.
</TABLE>
<TABLE>
Note 10. Unaudited quarterly financial information -
Quarterly financial information for the fiscal years ended June 30, 1996 and 1995 is summarized as follows:
<CAPTION>
First Second Third Fourth Fiscal
Quarter Quarter Quarter Quarter Year
<S> <C> <C> <C> <C> <C>
1996
Net sales $56,038,000 $54,354,000 $49,910,000 $55,271,000 $215,573,000
Cost of sales 40,640,000 38,844,000 36,213,000 39,960,000 155,657,000
Net income 2,076,000 2,017,000 1,120,000 2,384,000 7,597,000
Earnings per share .49 .47 .26 .56 1.78
1995
Net sales $51,763,000 $52,992,000 $53,966,000 $52,185,000 $210,906,000
Cost of sales 34,934,000 35,803,000 35,982,000 36,223,000 142,942,000
Net income 3,609,000 3,310,000 3,311,000 3,272,000 13,502,000
Earnings per share .85 .78 .78 .77 3.18
</TABLE>
<TABLE>
QUARTERLY STOCK INFORMATION
<CAPTION>
1996 1995
High Low Dividend High Low Dividend
<S> <C> <C> <C> <C> <C> <C>
First Quarter $34 5/8 $31 $ .25 $29 5/8 $24 1/8 $ .25
Second Quarter 31 7/8 28 .25 31 1/4 27 .25
Third Quarter 31 25 1/4 .25 33 1/4 29 3/8 .25
Fourth Quarter 28 24 5/8 .25 36 3/4 31 3/4 .25
Year $34 5/8 $24 5/8 $1.00 $36 3/4 $24 1/8 $1.00
</TABLE>
<PAGE>
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANTS
P
PRICE WATERHOUSE LLP W
To the Board of Directors and Shareholders of
International Aluminum Corporation
In our opinion, the accompanying consolidated balance sheets
and the related consolidated statements of income,
shareholders' equity and cash flows present fairly, in all
material respects, the financial position of International
Aluminum Corporation and its subsidiaries at June 30, 1996 and
1995, and the results of their operations and their cash flows
for each of the three years in the period ended June 30, 1996,
in conformity with generally accepted accounting principles.
These financial statements are the responsibility of the
Company's management; our responsibility is to express an
opinion on these financial statements based on our audits. We
conducted our audits of these statements in accordance with
generally accepted auditing standards which require that we
plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used
and significant estimates made by management, and evaluating
the overall financial statement presentation. We believe that
our audits provide a reasonable basis for the opinion
expressed above.
PRICE WATERHOUSE LLP
Los Angeles, California
August 20, 1996
<PAGE>
<PAGE>
<TABLE>
CORPORATE INFORMATION
<CAPTION>
DIRECTORS OFFICERS
<S> <C>
Cornelius C. Vanderstar John P. Cunningham
Chairman of the Board President
John P. Cunningham David C. Treinen
Senior Vice President - Finance and
David C. Treinen Administration; Secretary
Hugh E. Curran Ronald L. Rudy
Retired Vice President - Sales of Senior Vice President - Operations
International Aluminum Corporation
Mitchell K. Fogelman
Joel F. McIntyre Vice President - Controller
Senior Partner in the Law Firm of
McIntyre, Borges & Burns Michael S. Snodgrass
Vice President - Human Resources
Alexander van de Pol
Retired President and Roland A. Young
Chairman of the Board of Treasurer; Assistant Secretary
Commonwealth Metals-Pacific
Donald J. Willfong
Executive Vice President of
Sutro & Co.
STOCK TRANSFER AGENT AND REGISTRAR
Continental Stock Transfer & Trust Company
2 Broadway
New York, N.Y. 10004
(212) 509-4000
ANNUAL SHAREHOLDERS MEETING
STOCK EXCHANGE LISTINGS
2 p.m., Thursday, October 31, 1996
New York Stock Exchange International Aluminum Corporation
Pacific Stock Exchange 767 Monterey Pass Road
Trading Symbol - IAL Monterey Park, California 91754
</TABLE>
<PAGE>
<PAGE>
<TABLE>
SUBSIDIARIES BY PRODUCT GROUP
<CAPTION>
COMMERCIAL - RESIDENTIAL -
<S> <C>
United States Aluminum Corporation International Window Corporation
Vernon, California South Gate, California
Hayward, California
Seattle, Washington International Window-Northern California
Hayward, California
United States Aluminum Corporation-Illinois
Bedford Park, Illinois International Window-Arizona, Inc.
Baltimore, Maryland Phoenix, Arizona
Boston, Massachusetts
Maestro Products, Inc.
United States Aluminum Corporation-Texas Moreno Valley, California
Waxahachie, Texas
Denver, Colorado Eland-Brandt, B.V.
Dallas, Texas Amsterdam, The Netherlands
Houston, Texas
United States Aluminum Corporation-Carolina
Rock Hill, South Carolina
Orlando, Florida
Atlanta, Georgia
Ragland Manufacturing Company, Inc.
Houston, Texas
Dallas, Texas
Waxahachie, Texas
ALUMINUM EXTRUSIONS - GLASS -
International Extrusion Corporation International California Glass Corporation
Alhambra, California South Gate, California
International Extrusion Corporation-Texas International Carolina Glass Corporation
Waxahachie, Texas Rock Hill, South Carolina
</TABLE>
International Aluminum Corporation
767 Monterey Pass Road
Monterey Park, California 91754
(213) 264-1670<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> JUN-30-1996
<PERIOD-END> JUN-30-1996
<CASH> 13230
<SECURITIES> 0
<RECEIVABLES> 35321
<ALLOWANCES> 0
<INVENTORY> 39582
<CURRENT-ASSETS> 92195
<PP&E> 98298
<DEPRECIATION> 53356
<TOTAL-ASSETS> 141843
<CURRENT-LIABILITIES> 20299
<BONDS> 0
0
0
<COMMON> 8453
<OTHER-SE> 108429
<TOTAL-LIABILITY-AND-EQUITY> 141843
<SALES> 215573
<TOTAL-REVENUES> 215573
<CGS> 155657
<TOTAL-COSTS> 203008
<OTHER-EXPENSES> (202)
<LOSS-PROVISION> 394
<INTEREST-EXPENSE> 109
<INCOME-PRETAX> 12767
<INCOME-TAX> 5170
<INCOME-CONTINUING> 7597
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7597
<EPS-PRIMARY> 1.78
<EPS-DILUTED> 0
</TABLE>
