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 September 30, 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
(Principal executive office)
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
At November 1, 1995 there were 4,257,430 shares of Common Stock outstanding.
Page 1 of 9 Pages
INTERNATIONAL ALUMINUM CORPORATION
AND SUBSIDIARIES
INDEX
Page Nos.
PART I Financial Information
Consolidated Balance Sheets -
September 30, 1995 and June 30, 1995 3
Consolidated Statements of Income -
three months ended September 30,
1995 and 1994 5
Consolidated Statements of Cash Flows -
three months ended September 30,
1995 and 1994 6
Notes to Consolidated Financial Statements 7
Management's Discussion and Analysis of
Financial Condition and Results of
Operations 8
Signatures 9
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PART I
INTERNATIONAL ALUMINUM CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Unaudited Audited
Assets Sept. 30, 1995 June 30, 1995
Current assets:
Cash and cash equivalents $ 6,210,000 $ 3,550,000
Investments 447,000 2,213,000
Accounts receivable, net 36,267,000 34,877,000
Unbilled receivables 1,276,000 1,222,000
Inventories:
Raw materials 31,485,000 31,002,000
Work-in-process 2,653,000 3,463,000
Finished goods 6,781,000 7,308,000
Prepaid expenses 2,862,000 2,060,000
Future income tax benefits 1,596,000 1,596,000
Total current assets 89,577,000 87,291,000
____________ ____________
Property, plant and equipment, at cost 98,843,000 97,412,000
Accumulated depreciation (53,308,000) (52,567,000)
45,535,000 44,845,000
____________ ____________
Other assets:
Costs in excess of net assets of
purchased businesses 4,805,000 4,839,000
Other 1,116,000 1,129,000
5,921,000 5,968,000
____________ ____________
$141,033,000 $138,104,000
____________ ____________
____________ ____________
<FN>
See accompanying notes to consolidated financial statements.
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INTERNATIONAL ALUMINUM CORPORATION
AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
Unaudited Audited
Liabilities and Shareholders' Equity Sept. 30, 1995 June 30, 1995
Current liabilities:
Accounts payable $ 10,331,000 $ 7,820,000
Accrued liabilities 8,326,000 9,555,000
Current portion of long-term debt 513,000 423,000
Income taxes payable 2,000,000 1,098,000
Total current liabilities 21,170,000 18,896,000
____________ ____________
Long-term debt 312,000 542,000
____________ ____________
Other liabilities:
Deferred income taxes 4,496,000 4,496,000
Other 384,000 399,000
4,880,000 4,895,000
____________ ____________
Shareholders' equity 114,671,000 113,771,000
____________ ____________
$141,033,000 $138,104,000
____________ ____________
____________ ____________
<FN>
See accompanying notes to consolidated financial statements.
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Unaudited
INTERNATIONAL ALUMINUM CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
Three Months Ended
September 30,
1995 1994
Net sales $56,038,000 $51,763,000
Costs and expenses:
Cost of sales 40,640,000 34,934,000
Selling, general and
administrative expenses 11,744,000 10,968,000
Interest (income) expense, net (12,000) (98,000)
Income before income taxes 3,666,000 5,959,000
Provision for income taxes 1,590,000 2,350,000
Net income $ 2,076,000 $ 3,609,000
___________ ___________
___________ ___________
Weighted average number of
common shares outstanding 4,254,520 4,233,683
Earnings per common share $.49 $.85
Cash dividends per common share $.25 $.25
<FN>
See accompanying notes to consolidated financial statements.
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Unaudited
INTERNATIONAL ALUMINUM CORPORATION
AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
Three Months Ended
September 30,
1995 1994
Cash flows from operating activities:
Net income $ 2,076,000 $ 3,609,000
Adjustments for noncash transactions:
Depreciation and amortization 1,181,000 1,162,000
Changes in assets and liabilities:
Receivables (1,590,000) (2,037,000)
Inventories 809,000 (3,137,000)
Prepaid expenses and other (801,000) (467,000)
Accounts payable 2,578,000 (244,000)
Accrued liabilities and other (1,203,000) (1,409,000)
Income taxes payable 899,000 953,000
Net cash provided (used) by operating activities 3,949,000 (1,570,000)
Cash flows from investing activities:
Capital expenditures (1,961,000) (671,000)
Proceeds from sales of capital assets 34,000 21,000
Changes in investments 1,766,000 482,000
Net cash used in investing activities (161,000) (168,000)
Cash flows from financing activities:
Repayment of long-term debt (140,000) (138,000)
Exercise of stock options 66,000 55,000
Dividends paid to shareholders (1,064,000) (1,059,000)
Net cash used in financing activities (1,138,000) (1,142,000)
Effect of exchange rate changes on cash 10,000 6,000
Net change in cash and cash equivalents 2,660,000 (2,874,000)
Cash and cash equivalents at beginning
of period 3,550,000 6,413,000
Cash and cash equivalents at end of period $ 6,210,000 $ 3,539,000
___________ ___________
___________ ___________
<FN>
See accompanying notes to consolidated financial statements.
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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 September 30, 1995 and June 30, 1995, and the
results of operations and cash flows for the three month periods ended
September 30, 1995 and 1994.
The results of operations for the three month periods ended September 30,
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.
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Unaudited
INTERNATIONAL ALUMINUM CORPORATION
AND SUBSIDIARIES
Management's Discussion and Analysis of Financial Condition
and Results of Operations
Significant Changes in Results of Operations:
The increase in net sales for the quarter ended September 30, 1995 of
$4,275,000 or 8.3% from the comparable quarter of fiscal year 1995 is
comprised solely of the net increase in domestic sales. The net sales include
significant increases posted by the Commercial Products Group, up $4,781,000
or 23.7% and by the Glass Products Group, up $705,000 or 17.6%. These
increases were partially offset by a $1,670,000 or 11.2% decrease posted by
the Residential Products Group.
The cost of sales as a percentage of net sales was 72.5% for the quarter
ended September 30, 1995 as opposed to 67.5% for the comparable prior year
period. This increase is primarily attributable to significantly decreased
margins in the Aluminum Extrusion Group resulting from increased material
costs coupled with declining selling prices. Additionally, nearly all of the
Company's fabrication facilities incurred decreased margins associated with
rising material costs.
Selling, general and administrative expenses for the quarter were $776,000
or 7.1% higher than those of the comparable quarter of the prior year. The
increase primarily relates to additional costs associated with the increased
sales volume.
The decline in net interest income for the quarter relates to the
significantly decreased level of funds available for investment during the
quarter.
The effective tax rate for the quarter ended September 30, 1995 was 43.4%
whereas the comparable quarter of fiscal year 1995 was 39.4%. This increase
is primarily related to incurrence of foreign pretax losses for which the
Company realized no tax benefit due to the lack of available loss carryback
provisions.
Liquidity and Capital Resources:
Working capital increased to $68,407,000 during the three months ended
September 30, 1995, which represents an increase of $12,000 from June 30,
1995. The ratio of current assets to current liabilities is currently 4.2 as
compared to 4.6 as of the beginning of the year.
The Company's projected capital expenditures for fiscal 1996 and related
financing remain unchanged form those described in the June 30, 1995 Annual
Report. The Company's line of credit remains unchanged from that noted in the
June 30, 1995 Annual Report to Shareholders.
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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 November 13, 1995 DAVID C. TREINEN
David C. Treinen
Senior Vice President - Finance
and Administration
(Principal Financial Officer)
Date November 13, 1995 MITCHELL K. FOGELMAN
Mitchell K. Fogelman
Vice President - Controller
(Principal Accounting Officer)
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