UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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(Mark One) |
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QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
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For the Quarterly Period Ended July 31, 2003 |
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE |
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Commission file number 1-12557 |
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CASCADE CORPORATION |
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(Exact name of registrant as specified in its charter) |
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Oregon |
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93-0136592 |
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(State or other jurisdiction of |
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(I.R.S. Employer Identification No.) |
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2201 N.E. 201st Ave. |
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97024-9718 |
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(Address of principal executive office) |
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(Zip Code) |
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Registrant’s telephone number, including area code: (503) 669-6300 |
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Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o
Indicate by check mark whether the registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). Yes ý No o
The number of shares outstanding of the registrant’s common stock as of August 22, 2003 was 12,016,543.
PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
CASCADE CORPORATION
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
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July 31 |
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January 31 |
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(unaudited) |
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ASSETS |
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Current assets: |
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Cash |
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$ |
27,988 |
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$ |
29,501 |
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Marketable securities |
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4,828 |
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— |
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Accounts receivable, less allowance for doubtful accounts of $1,394 and $1,801 |
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48,308 |
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42,784 |
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Inventories |
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30,173 |
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30,431 |
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Deferred income taxes |
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2,282 |
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2,188 |
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Income taxes receivable |
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1,166 |
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3,727 |
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Notes receivable, current portion |
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8,313 |
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1,088 |
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Prepaid expenses and other |
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5,171 |
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4,279 |
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Total current assets |
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128,229 |
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113,998 |
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Property, plant and equipment, net |
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67,875 |
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65,863 |
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Goodwill |
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64,528 |
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59,355 |
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Notes receivable, net |
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856 |
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8,559 |
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Deferred income taxes |
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11,671 |
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11,627 |
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Other assets |
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3,811 |
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2,915 |
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Total assets |
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$ |
276,970 |
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$ |
262,317 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Current liabilities: |
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Notes payable to banks |
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$ |
832 |
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$ |
1,043 |
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Current portion of long-term debt |
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12,695 |
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12,695 |
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Accounts payable |
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14,068 |
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13,763 |
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Accrued payroll and payroll taxes |
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5,181 |
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5,687 |
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Accrued environmental expenses |
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808 |
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808 |
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Other accrued expenses |
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9,036 |
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8,801 |
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Total current liabilities |
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42,620 |
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42,797 |
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Long-term debt |
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49,985 |
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50,113 |
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Accrued environmental expenses |
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9,046 |
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9,389 |
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Deferred income taxes |
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1,351 |
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1,226 |
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Other liabilities |
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6,469 |
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5,514 |
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Total liabilities |
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109,471 |
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109,039 |
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Exchangeable convertible preferred stock and minority interest |
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— |
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8,530 |
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Shareholders’ equity: |
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Common stock, $.50 par value, 20,000 authorized shares; 11,998 and 11,398 shares issued and outstanding |
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5,999 |
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5,699 |
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Additional paid-in capital |
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9,698 |
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1,468 |
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Retained earnings |
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160,641 |
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151,925 |
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Accumulated other comprehensive loss: |
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Cumulative foreign currency translation adjustments |
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(8,839 |
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(14,344 |
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Total shareholders’ equity |
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167,499 |
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144,748 |
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Total liabilities and shareholders’ equity |
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$ |
276,970 |
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$ |
262,317 |
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The accompanying notes are an integral part of the consolidated financial statements.
2
CASCADE CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(unaudited—in thousands, except per share data)
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Three Months Ended |
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Six Months Ended |
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2003 |
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2002 |
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2003 |
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2002 |
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Net sales |
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$ |
75,633 |
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$ |
64,272 |
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$ |
144,567 |
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$ |
124,214 |
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Cost of goods sold |
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50,646 |
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42,473 |
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96,870 |
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81,352 |
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Gross profit |
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24,987 |
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21,799 |
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47,697 |
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42,862 |
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Selling and administrative |
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15,316 |
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13,966 |
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29,964 |
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27,270 |
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Operating income |
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9,671 |
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7,833 |
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17,733 |
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15,592 |
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Interest expense, net |
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894 |
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1,097 |
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1,786 |
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2,188 |
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Other (income) expense |
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333 |
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(331 |
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(399 |
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(157 |
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Income before taxes |
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8,444 |
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7,067 |
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16,346 |
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13,561 |
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Provision for income taxes |
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2,702 |
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2,609 |
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5,231 |
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4,882 |
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Net income |
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5,742 |
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4,458 |
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11,115 |
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8,679 |
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Dividends paid on preferred shares of subsidiary |
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— |
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(30 |
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Net income applicable to common shareholders |
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$ |
5,742 |
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$ |
4,458 |
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$ |
11,085 |
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$ |
8,679 |
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