** **

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,D.C. 20549**

** **

**FORM 10-Q**

 

**QUARTERLYREPORT PURSUANT TO SECTION 13**

**OF THESECURITIES EXCHANGE ACT OF 1934**

 

| **For  quarter ended March 31, 2002** |   | **Commission  File Number 1-7256** |
|---------------------------------------|--------|------------------------------------|

 

 

 

**INTERNATIONAL ALUMINUM CORPORATION**

(Exactname of Registrant as specified in its charter)

 

 

 

| **California**            |   | **95-2385235**         |
|---------------------------|--------|------------------------|
| (State  of incorporation) |   | (I.R.S.  Employer No.) |

 

 

**767Monterey Pass Road**

**MontereyPark, California 91754**

**(323)264-1670**

(Principalexecutive office)

 

 

 

Indicate by check mark whether the Registrant (1) has filed all reportsrequired to be filed by Section 13 of the Securities Exchange Act of 1934during the preceding 12 months and (2) has been subject to such filingrequirements for the past 90 days.  Yes ý   No o

 

At May 1, 2002 there were 4,244,794 shares of Common Stock outstanding.

 

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INTERNATIONAL ALUMINUMCORPORATION

AND SUBSIDIARIES

 

INDEX

 
| PART  I.  Financial Information                                                            |
|-------------------------------------------------------------------------------------------------|
|                                                                                            |
| Consolidated  Balance Sheets -March 31, 2002  and June 30, 2001                                 |
|                                                                                            |
| Consolidated  Statements of Income -three  and nine month periods ended March 31, 2002 and 2001 |
|                                                                                            |
| Consolidated Statements of  Cash Flows -nine months ended March  31, 2002 and 2001              |
|                                                                                            |
| Notes  to Consolidated Financial Statements                                                     |
|                                                                                            |
| Management’s  Discussion and Analysis ofFinancial Condition and  Results of Operations     |
|                                                                                            |
| Signatures                                                                                      |

 

2

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PART I

 

INTERNATIONALALUMINUM CORPORATION

AND SUBSIDIARIES

 

CONSOLIDATED BALANCE SHEETS

 

 
|                                                  |   | **Unaudited**                |        | **Audited**                 |   |
|-------------------------------------------------------|--------|------------------------------|-------------|-----------------------------|--------|
|                                                  |   | **March 31, 2002** |        | **June 30, 2001** |   |
| Assets                                                |   |                         |        |                        |   |
| Current assets:                                       |   |                         |        |                        |   |
| Cash and cash  equivalents                            |   | $                            | 1,919,000   |                        | $      | 5,915,000 |   |
| Accounts  receivable, net                             |   | 36,380,000                   |        | 37,711,000                  |   |
| Inventories                                           |   | 37,695,000                   |        | 37,731,000                  |   |
| Prepaid expenses  and deposits                        |   | 2,078,000                    |        | 2,597,000                   |   |
| Future income  tax benefits                           |   | 1,382,000                    |        | 1,406,000                   |   |
|                                                  |   |                         |        |                        |   |
| Total current  assets                                 |   | 79,454,000                   |        | 85,360,000                  |   |
|                                                  |   |                         |        |                        |   |
| Property, plant  and equipment, at cost               |   | 121,606,000                  |        | 114,693,000                 |   |
| Accumulated  depreciation                             |   | (63,891,000                  | )           | (61,145,000                 | )      |
|                                                  |   |                         |        |                        |   |
| Net property,  plant and equipment                    |   | 57,715,000                   |        | 53,548,000                  |   |
|                                                  |   |                         |        |                        |   |
| Other assets:                                         |   |                         |        |                        |   |
| Costs in excess  of net assets ofpurchased businesses |   | 8,948,000                    |        | 8,966,000                   |   |
| Other                                                 |   | 340,000                      |        | 196,000                     |   |
|                                                  |   |                         |        |                        |   |
| Total other  assets                                   |   | 9,288,000                    |        | 9,162,000                   |   |
|                                                  |   |                         |        |                        |   |
|                                                  |   | $                            | 146,457,000 |                        | $      | 148,070,000 |   |
|                                                  |   |                         |        |                        |   |
|                                                  |   |                         |        |                        |   |
| Liabilities and  Shareholders’ Equity            |   |                         |        |                        |   |
|                                                  |   |                         |        |                        |   |
| Current  liabilities:                                 |   |                         |        |                        |   |
| Accounts payable                                      |   | $                            | 11,492,000  |                        | $      | 9,235,000 |   |
| Accrued  liabilities                                  |   | 9,610,000                    |        | 9,347,000                   |   |
| Advances payable  to banks                            |   | 940,000                      |        | 165,000                     |   |
| Income taxes  payable                                 |   | —                       |        | 516,000                     |   |
|                                                  |   |                         |        |                        |   |
| Total current  liabilities                            |   | 22,042,000                   |        | 19,263,000                  |   |
|                                                  |   |                         |        |                        |   |
| Deferred income  taxes                                |   | 5,052,000                    |        | 5,052,000                   |   |
|                                                  |   |                         |        |                        |   |
| Total  liabilities                                    |   | 27,094,000                   |        | 24,315,000                  |   |
|                                                  |   |                         |        |                        |   |
| Shareholders’  equity                            |   | 119,363,000                  |        | 123,755,000                 |   |
|                                                  |   |                         |        |                        |   |
|                                                  |   | $                            | 146,457,000 |                        | $      | 148,070,000 |   |
|                                                       |        |                              |             |                             |        |  |  |  |  |

 

See accompanying notes to consolidated financial statements.

 

3

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Unaudited

 

INTERNATIONALALUMINUM CORPORATION

AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OFINCOME

 
| ** **                                                    |   | **Three  Months Ended********March 31,** |       | **Nine  Months Ended********March 31,** |   |
|---------------------------------------------------------------|--------|------------------------------------------|------------|-----------------------------------------|--------|
|                                                          |   | **2002**                                 |       | **2001**                                |   | **2002** |   | **2001** |   |
| Net sales                                                     |   | $                                        | 46,473,000 |                                    | $      | 49,658,000 |   | $ | 147,039,000 |   | $ | 156,463,000 |   |
| Cost of sales                                                 |   | 38,264,000                               |       | 41,582,000                              |   | 121,603,000 |   | 127,608,000 |   |
| Gross profit                                                  |   | 8,209,000                                |       | 8,076,000                               |   | 25,436,000 |   | 28,855,000 |   |
| Selling, gen.  and admin. expenses                            |   | 7,570,000                                |       | 8,331,000                               |   | 24,169,000 |   | 23,633,000 |   |
| Income (loss)  from operations                                |   | 639,000                                  |       | (255,000                                | )      | 1,267,000 |   | 5,222,000 |   |
| Interest  (income) expense, net                               |   | 17,000                                   |       | (26,000                                 | )      | 4,000 |   | 100,000 |   |
| Income (loss)  from continuing operations before income taxes |   | 622,000                                  |       | (229,000                                | )      | 1,263,000 |   | 5,122,000 |   |
| Provision for  income taxes                                   |   | 230,000                                  |       | (123,000                                | )      | 485,000 |   | 1,840,000 |   |
| Income (loss)  from continuing operations                     |   | 392,000                                  |       | (106,000                                | )      | 778,000 |   | 3,282,000 |   |
| Loss from  discontinued operations                            |   | —                                   |       | (110,000                                | )      | (1,065,000 | ) | (232,000 | ) |
| Net income  (loss)                                            |   | $                                        | 392,000    |                                    | $      | (216,000 | ) | $ | (287,000 | ) | $ | 3,050,000 |   |
|                                                          |   |                                     |       |                                    |   |   |   |   |   |
| Basic and  diluted EPS:                                       |   |                                     |       |                                    |   |   |   |   |   |
| Continuing  operations                                        |   | $                                        | .09        |                                    | $      | (.02 | ) | $ | .18 |   | $ | .77 |   |
| Discontinued  operations                                      |   | —                                   |       | (.03                                    | )      | (.25 | ) | (.05 | ) |
| Total                                                         |   | $                                        | .09        |                                    | $      | (.05 | ) | $ | (.07 | ) | $ | .72 |   |
|                                                          |   |                                     |       |                                    |   |   |   |   |   |
| Shares used to  compute EPS:                                  |   |                                     |       |                                    |   |   |   |   |   |
| Basic and  Diluted                                            |   | 4,244,794                                |       | 4,244,794                               |   | 4,244,794 |   | 4,244,794 |   |
|                                                          |   |                                     |       |                                    |   |   |   |   |   |
| Cash dividends  per share                                     |   | $                                        | .30        |                                    | $      | .30 |   | $ | .90 |   | $ | .90 |   |

 

 

See accompanying notes to consolidated financial statements.

 

4

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Unaudited

 

INTERNATIONALALUMINUM CORPORATION

AND SUBSIDIARIES

 

CONSOLIDATED STATEMENTS OF CASHFLOWS

 

 
| ** **                                        |   | **Nine  Months Ended********March 31,** |      |
|---------------------------------------------------|--------|----------------------------------------------|-----------|
|                                              |   | **2002**                                     |      | **2001** |   |
| Cash flows from  operating activities:            |   |                                         |      |   |   |
| Net income  (loss)                                |   | $                                            | (287,000  | ) | $ | 3,050,000 |   |
| Adjustments for  noncash transactions:            |   |                                         |      |   |   |
| Depreciation and  amortization                    |   | 5,262,000                                    |      | 5,584,000 |   |
| Change in  deferred income taxes                  |   | 24,000                                       |      | — |   |
| Gain on sale of  fixed assets                     |   | (631,000                                     | )         | (390,000 | ) |
| Changes in  assets and liabilities:               |   |                                         |      |   |   |
| Receivables                                       |   | 1,331,000                                    |      | 3,519,000 |   |
| Inventories                                       |   | 36,000                                       |      | 5,461,000 |   |
| Prepaid expenses  and deposits                    |   | 375,000                                      |      | (1,125,000 | ) |
| Accounts payable                                  |   | 2,257,000                                    |      | 1,621,000 |   |
| Accrued  liabilities                              |   | 263,000                                      |      | (411,000 | ) |
| Income taxes  payable                             |   | (516,000                                     | )         | (249,000 | ) |
|                                              |   |                                         |      |   |   |
| Net cash  provided by operating activities        |   | 8,114,000                                    |      | 17,060,000 |   |
|                                              |   |                                         |      |   |   |
| Cash flows from  investing activities:            |   |                                         |      |   |   |
| Capital  expenditures                             |   | (10,837,000                                  | )         | (4,610,000 | ) |
| Proceeds from  sales of capital assets            |   | 1,772,000                                    |      | 3,187,000 |   |
|                                              |   |                                         |      |   |   |
| Net cash used in  investing activities            |   | (9,065,000                                   | )         | (1,423,000 | ) |
|                                              |   |                                         |      |   |   |
| Cash flows from  financing activities:            |   |                                         |      |   |   |
| Dividends paid  to shareholders                   |   | (3,820,000                                   | )         | (3,820,000 | ) |
| Net borrowing  under lines of credit              |   | 775,000                                      |      | (9,470,000 | ) |
|                                              |   |                                         |      |   |   |
| Net cash used in  financing activities            |   | (3,045,000                              | )         | (13,290,000 | ) |
|                                              |   |                                         |      |   |   |
| Net change in  cash and cash equivalents          |   | (3,996,000                                   | )         | 2,347,000 |   |
|                                              |   |                                         |      |   |   |
| Cash and cash  equivalents at beginning of period |   | 5,915,000                                    |      | 1,678,000 |   |
|                                              |   |                                         |      |   |   |
| Cash and cash  equivalents at end of period       |   | $                                            | 1,919,000 |   | $ | 4,025,000 |   |

 

 

See accompanying notes to consolidated financial statements.

 

5

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Unaudited

 

INTERNATIONALALUMINUM CORPORATION

AND SUBSIDIARIES

 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

 

 

Basis of Presentation

 

                In the opinion ofmanagement, the accompanying unaudited consolidated financial statementscontain all adjustments (which consist solely of normal recurring adjustmentsunless otherwise disclosed) necessary to present fairly, in all materialrespects, its financial position as of March 31, 2002 and June 30, 2001,and the results of operations for the three and nine month periods ended March31, 2002 and 2001 and the cash flows for the nine month periods ended March 31,2002 and 2001.  The results ofoperations for the three and nine month periods ended March 31, 2002 and 2001are not necessarily indicative of the results to be expected for the full year.

 

                The financialstatements included herein have been prepared by the Company pursuant to therules and regulations of the Securities and Exchange Commission.  Certain information and footnote disclosuresnormally included in financial statements prepared in accordance with generallyaccepted accounting principles have been condensed or omitted pursuant to suchrules and regulations, although the Company believes that the disclosures areadequate to make the information presented not misleading.  It is suggested that these financialstatements be read in conjunction with the financial statements and the notesthereto included in the Company’s latest annual report on Form 10-K.

 

 

Comprehensive Income

 

                Comprehensiveincome, defined as net income and other comprehensive income, for the thirdquarters ended March 31, 2002 and 2001 was $376,000 and $(460,000),respectively.  Comprehensive income forthe nine months ended March 31, 2002 and 2001 was $(572,000) and $2,745,000,respectively.  Other comprehensiveincome includes foreign currency translation adjustments recorded directly inshareholders’ equity.

 

 
| **Balance  Sheet Components**              |   |        | **March 31,  2002** |        | **June 30,  2001** |        |
|--------------------------------------------|--------|-------------|---------------------|-------------|--------------------|-------------|
| Inventories,  lower of FIFO Cost or Market |   |        |                |        |               |
| Raw materials                              |   | $           | 31,829,000          |        | $                  | 32,153,000  |   |
| Work in process                            |   | 1,461,000   |                | 1,332,000   |               |
| Finished goods                             |   | 4,405,000   |                | 4,246,000   |               |
|                                       |   | $           | 37,695,000          |        | $                  | 37,731,000  |   |
|                                       |   |        |                |        |               |
| Shareholders’  Equity                 |   |        |                |        |               |
| Common stock                               |   | $           | 4,765,000           |        | $                  | 4,765,000   |   |
| Paid-in capital                            |   | 4,123,000   |                | 4,123,000   |               |
| Retained  earnings                         |   | 110,911,000 |                | 115,018,000 |               |
| Accumulated  other comprehensive income    |   | (436,000    | )                   | (151,000    | )                  |
|                                       |   | $           | 119,363,000         |        | $                  | 123,755,000 |   |

 

6

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Unaudited

 

Segment Information

 

                The followingpresents the Company’s net sales, operating income and total assets byoperating segment, reconciling to the Company’s totals.  All data presented in thousands of dollars.

 

 
|                      |   | **Three  Months Ended********March 31,** |   | **Nine  Months Ended********March 31,** |   |
|---------------------------|--------|------------------------------------------|--------|-----------------------------------------|--------|
|                      |   | **2002**                                 |   | **2001**                                |   | **2002** |   | **2001** |   |
| Net Sales:                |   |                                     |   |                                    |   |   |   |   |   |
|                      |   |                                     |   |                                    |   |   |   |   |   |
| Commercial                |   | $                                        | 26,213 |                                    | $      | 27,967 |   | $ | 84,210 |   | $ | 86,223 |   |
| Residential               |   | 9,745                                    |   | 12,418                                  |   | 34,922 |   | 41,232 |   |
| Aluminum  Extrusion       |   | 21,029                                   |   | 23,143                                  |   | 67,768 |   | 70,035 |   |
| Total Segments            |   | 56,987                                   |   | 63,528                                  |   | 186,900 |   | 197,490 |   |
| Eliminations              |   | (10,514                                  | )      | (13,870                                 | )      | (39,861 | ) | (41,027 | ) |
| Total                     |   | $                                        | 46,473 |                                    | $      | 49,658 |   | $ | 147,039 |   | $ | 156,463 |   |
|                      |   |                                     |   |                                    |   |   |   |   |   |
|                      |   | **Three  Months Ended********March 31,** |   | **Nine  Months Ended********March 31,** |   |
|                      |   | **2002**                                 |   | **2001**                                |   | **2002** |   | **2001** |   |
| Operating Income  (Loss): |   |                                     |   |                                    |   |   |   |   |   |
|                      |   |                                     |   |                                    |   |   |   |   |   |
| Commercial                |   | $                                        | 2,445  |                                    | $      | 1,807 |   | $ | 7,793 |   | $ | 8,205 |   |
| Residential               |   | (425                                     | )      | 245                                     |   | (1,051 | ) | 2,958 |   |
| Aluminum  Extrusion       |   | 278                                      |   | 557                                     |   | (98 | ) | 406 |   |
| Total Segments            |   | 2,298                                    |   | 2,609                                   |   | 6,644 |   | 11,569 |   |
| Eliminations              |   | (47                                      | )      | (593                                    | )      | 87 |   | (651 | ) |
| Corporate                 |   | (1,612                                   | )      | (2,271                                  | )      | (5,464 | ) | (5,696 | ) |
| Total                     |   | $                                        | 639    |                                    | $      | (255 | ) | $ | 1,267 |   | $ | 5,222 |   |

 
|                |   | **March 31,  2002** |    | **June 30,********2001** |   |
|---------------------|--------|---------------------|---------|--------------------------|--------|
| Total Assets:       |   |                |    |                     |   |
|                |   |                |    |                     |   |
| Commercial          |   | $                   | 66,506  |                     | $      | 66,994 |   |
| Residential         |   | 30,950              |    | 32,405                   |   |
| Aluminum  Extrusion |   | 41,506              |    | 38,032                   |   |
| Total Segments      |   | 138,962             |    | 137,431                  |   |
| Corporate           |   | 7,495               |    | 10,639                   |   |
| Total               |   | $                   | 146,457 |                     | $      | 148,070 |   |

 

                The Net Sales andOperating Income of the Residential Products segment excludes the operations ofMaestro Products, the Company’s wood window and door subsidiary, as it isaccounted for as a discontinued operation. Significantly impacting the Residential segment was a costly laborstrike initiated in mid-September at a major facility, which necessitated thehiring and retraining of replacement personnel and the shifting of orders toother facilities.

 

                In December theResidential subsidiaries received notification that a large home improvementchain, which we supplied on a regional basis, was shifting their stock windowand door business to an alternative supplier. This is diminishing sales but is not significantly impacting operatingincome.

 

7

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Unaudited

 

INTERNATIONAL ALUMINUMCORPORATION

AND SUBSIDIARIES

 

 

Current and PendingAccounting Changes

 

                The Companyadopted SFAS No. 142, “Goodwill and Other Intangible Assets” effective July 1,2001, and as a result is not required to expense goodwill in the amount of$368,000 for the nine months ended March 31, 2002.  Excluding goodwill amortization for the same period last yearwould have increased reported net income to $3,467,000 and Basic and Dilutedearnings per share to $.82.  SFAS No.142 also requires that existing goodwill be reviewed for impairment using arevised methodology during the year of adoption.  The Company has completed the initial phase of its transitionalgoodwill impairment test which identified a potential impairment of goodwillrelated to a reporting unit within the Commercial Products Group.  Under the standard, the Company has untilthe end of its fiscal year to determine the implied fair value of goodwillrelated to this reporting unit and record a loss if the fair value is less thanthe goodwill’s carrying value.  Thiscalculation is currently in process. Although management cannot reasonably estimate the potential loss atthis time, the impairment charge is expected to be significant.

 

                In August 2001,the Financial Accounting Standards Board issued SFAS No. 144, “Accounting forImpairment or Disposal of Long-Lived Assets”. This pronouncement providesspecific guidance for long-lived assets to be disposed of by sale, abandoned,exchanged for a similar productive asset or distributed to owners in a spin-off.  The Company has adopted SFAS No. 144, andclassified the disposal of Maestro Products as a discontinued operation.  There were no other impairment chargesrelated to the adoption of this standard which impacted our consolidatedresults of operations or financial position.

 

Discontinued Operations

 

                In December 2001,the Company announced the closure of Maestro Products, its wood window and doorsubsidiary which was a component of the Residential Products segment.  The Company is currently discussing the saleof the subsidiary with certain potential buyers.  Results of Maestro Products have been reclassified asdiscontinued operations and are shown net of taxes for all periods presented onthe statement of income.  Included inMaestro Products results for the nine month period ended March 31, 2002 are$1,175,000 of charges related to the writedown of various assets, primarilyinventory.  Results of operations forthe periods presented are as follows:

 

 
| ** **                       |   | **Three  Months Ended********March 31** |   | **Nine  Months Ended********March 31** |   |
|----------------------------------|--------|-----------------------------------------|--------|----------------------------------------|--------|
|                             |   | **2002**                                |   | **2001**                               |   | **2002** |   | **2001** |   |
| Net Sales                        |   | $                                       | — |                                   | $      | 563,000 |   | $ | 1,398,000 |   | $ | 2,249,000 |   |
|                             |   |                                    |   |                                   |   |   |   |   |   |
| Pre tax loss                     |   | $                                       | — |                                   | $      | (237,000  | ) | $ | (1,770,000 | ) | $ | (362,000 | ) |
| Provision for  income taxes      |   | —                                  |   | (127,000                               | )      | (705,000 | ) | (130,000 | ) |
| Loss fromdiscontinued operations |   | $                                       | — |                                   | $      | (110,000  | ) | $ | (1,065,000 | ) | $ | (232,000 | ) |

 

8

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Unaudited

 

INTERNATIONALALUMINUM CORPORATION

AND SUBSIDIARIES

 

MANAGEMENT’S DISCUSSIONAND ANALYSIS OF FINANCIAL CONDITION

AND RESULTS OFOPERATIONS

 

 

Significant Changes in Results of Operations

 

                Net salesdecreased by $3,185,000 or 6.4% for the quarter ended March 31, 2002 and by$9,424,000 or 6.0% for the nine months then ended when compared with therespective fiscal 2001 periods.  Theeconomic slowdown continued to impact sales at our Residential and CommercialProducts Groups.  Sales for theResidential Products Group declined $2,549,000 or 20.9% for the quarter and$6,350,000 or 15.6% for the nine months compared to the same periods last year.  Compounding the sluggish economy, asmentioned in the Form 10-Q for the September and December quarters, a tradeunion strike at our South Gate, California facility limited our ability tomaintain normal delivery schedules to our customers in the territory servicedfrom this location.  An additionalfactor is the loss of sales to two large home improvement chains which weresupplied on a regional basis.  One ofthese chains discontinued operations and the other shifted to an alternativesupplier.  Sales for the CommercialProducts Group have declined $1,818,000 or 6.5% for the quarter and $2,013,000or 2.3% for the nine months compared to the same periods last year, primarilydue to decreased sales by our RACO Interior Products subsidiary, combined withdecreased sales during the quarter of our United States Aluminum exteriorproducts into the Western U.S. and Eastern Canada marketing areas.  Partially offsetting these decreases werestrong gains made in the Western Canada marketing area.  On a positive note, sales for the AluminumExtrusion Group increased $1,182,000 or 12.3% for the quarter compared to thesame period last year, although for the nine months sales declined $1,061,000or 3.6% when compared to the same period last year.  Demand for our extruded products has strengthened this quarter,particularly in the area served by our Texas facility.

 

                Cost of sales as apercentage of net sales was 82.3% for the quarter ended March 31, 2002 asopposed to 83.7% for the same period last year and for the nine months was82.7% compared to 81.6% for the same period last year.  Since the aforementioned September strike,the Residential Products Group has incurred higher costs due to productioninefficiencies resulting from the hiring and training of replacementpersonnel.  Operations at the SouthGate, California plant are returning to normal as the newly trained work forcebecomes more productive.  In addition,high overhead costs, including significantly increased utility costs, wereincurred at our California extrusion facility. These factors largely offset decreased material costs achieved thisquarter at all Product Groups.

 

                Selling, generaland administrative expenses decreased by $761,000 or 9.1% for the quarter,however over the nine month period they increased by $536,000 or 2.3% whencompared to the same periods last year. The decreased expenses this quarter are primarily attributable to loweremployment costs related to the aforementioned decrease in sales coupled withdeclines in promotional costs and the prior year reflecting amortization ofgoodwill.  As previously indicated, dueto adoption of SFAS No. 142 goodwill is not being amortized this year.  The year to date increase reflects strikerelated high security and legal costs in addition to additional expense forretrospective workers’ compensation adjustments for prior year claims.  Partially offsetting these costs is a gainrealized in the first quarter on the sale of our former Glass Group facility inSouth Carolina.

 

9

----

 

Unaudited

 

                The currentquarter net interest expense compared to the net interest income for sameperiod last year reflects a depletion of funds available for investment andutilization of domestic and foreign lines of credit.  The prior year to date net interest expense reflects utilizationof a domestic line of credit used in part to finance heavy capital expendituresduring the preceding year.

 

                The effective tax rate for the ninemonths ended March 31, 2002 was 43.4% whereas the comparable period of theprior year was 35.9%.  The lower prioryear rate reflects the availability of additional tax credits.

 

 

Liquidity and Capital Resources

 

                Working capital atMarch 31, 2002 stood at $57,412,000, a decrease of $8,685,000 from June 30,2001.  The ratio of current assets tocurrent liabilities is currently 3.6 as compared to 4.4 as of the beginning ofthe year.

 

                The Company’sprojected net capital expenditures for fiscal 2002 and related financing remainunchanged from those described in the June 30, 2001 Annual Report.  The Company’s domestic line of creditremains unchanged from that described in the June 30, 2001 Annual Report toShareholders.

 

 

Forward-Looking Information

 

                This reportcontains forward-looking statements with respect to the financial condition,results of operations and business of the Company.  Such items are subject to certain risks and uncertainties thatcould cause actual results to differ materially from those set forth in suchstatements.  Readers are cautioned notto place undue reliance on these forward-looking statements, which speak onlyas of the date the statement was made. The Company undertakes no obligation to publicly update or revise anyforward-looking statements, whether as a result of new information, futureevents or otherwise.

 

10

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INTERNATIONALALUMINUM CORPORATION

AND SUBSIDIARIES

 

SIGNATURES

 

 

                Pursuant to therequirements of the Securities Exchange Act of 1934, the registrant has dulycaused this report to be signed on its behalf by the undersigned thereunto dulyauthorized.

 
|   |         |   | International Aluminum  Corporation   |
|--------|--------------|--------|---------------------------------------|
|   |         |   | (Registrant)                          |
|   |         |   |                                  |
|   |         |   |                                  |
| Date:  | May 13, 2002 |   | MITCHELL K. FOGELMAN                  |
|   |         |   | Mitchell K. Fogelman                  |
|   |         |   | Senior Vice President —  Finance |
|   |         |   | (Principal Financial  Officer)        |
|   |         |   |                                  |
|   |         |   |                                  |
| Date:  | May 13, 2002 |   | MICHAEL J. NORRING                    |
|   |         |   | Michael J. Norring                    |
|   |         |   | Controller                            |
|   |         |   | (Principal Accounting  Officer)       |

 

 

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