UNITED
STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
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(Mark One) |
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ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR
15(d) |
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For the quarterly period ended January 31, 2004 |
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OR |
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o TRANSITION REPORT PURSUANT TO SECTION 13 OR
15(d) |
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For the transition period from to . |
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Commission File Number 1-5725 |
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QUANEX CORPORATION |
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(Exact name of registrant as specified in its charter) |
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DELAWARE |
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38-1872178 |
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(State
or other jurisdiction of |
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(I.R.S.
Employer |
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1900 West Loop South, Suite 1500, Houston, Texas 77027 |
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(Address of principal executive offices and zip code) |
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Registrant’s telephone number, including area code: (713) 961-4600 |
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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 Rule 12b-2 of the Exchange Act). Yes ý No o
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
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Class |
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Outstanding at January 31, 2004 |
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Common Stock, par value $0.50 per share |
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16,421,724 |
QUANEX CORPORATION
INDEX
Item 1. Financial Statements
QUANEX CORPORATION
(Unaudited)
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January 31, |
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October 31, |
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(In thousands) |
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ASSETS |
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Current assets: |
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Cash and equivalents |
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$ |
10,182 |
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$ |
22,108 |
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Accounts and notes receivable, net of allowance for doubtful accounts of $7,489 and $7,222 |
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149,735 |
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123,185 |
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Inventories |
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125,436 |
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79,322 |
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Deferred income taxes |
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10,033 |
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6,366 |
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Other current assets |
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6,576 |
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1,750 |
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Total current assets |
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301,962 |
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232,731 |
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Property, plant and equipment, net |
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423,973 |
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335,904 |
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Goodwill, net |
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137,730 |
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66,436 |
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Cash surrender value insurance policies, net |
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25,061 |
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24,536 |
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Intangible assets |
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29,283 |
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2,755 |
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Other assets |
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5,777 |
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3,501 |
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$ |
923,786 |
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$ |
665,863 |
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LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current liabilities: |
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Accounts payable |
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$ |
117,728 |
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$ |
89,435 |
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Accrued liabilities |
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47,647 |
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39,209 |
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Income taxes payable |
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7,043 |
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7,381 |
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Current maturities of long-term debt |
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3,727 |
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3,877 |
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Other current liabilities |
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— |
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46 |
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Total current liabilities |
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176,145 |
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139,948 |
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Long-term debt |
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225,902 |
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15,893 |
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Deferred pension credits |
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945 |
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8,323 |
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Deferred postretirement welfare benefits |
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7,824 |
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7,845 |
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Deferred income taxes |
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41,446 |
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34,895 |
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Other liabilities |
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15,962 |
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13,800 |
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Total liabilities |
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468,224 |
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220,704 |
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Stockholders’ equity: |
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Preferred stock, no par value, shares authorized 1,000,000; issued and outstanding – none |
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— |
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— |
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Common stock, $.50 par value, shares authorized 50,000,000; issued 16,526,059 and 16,519,271 |
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8,263 |
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8,260 |
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Additional paid-in-capital |
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188,924 |
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187,114 |
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Retained earnings |
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266,079 |
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264,067 |
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Unearned compensation |
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(903 |
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(164 |
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Accumulated other comprehensive income |
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(3,656 |
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(3,641 |
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458,707 |
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455,636 |
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Less common stock held by rabbi trust, 54,443 and 47,507 shares |
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(1,595 |
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(1,317 |
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Less cost of shares of common stock in treasury, 49,892 and 294,803 shares |
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(1,550 |
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(9,160 |
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Total stockholders’ equity |
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455,562 |
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445,159 |
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$ |
923,786 |
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$ |
665,863 |
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1
QUANEX CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
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Three
Months Ended |
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2004 |
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2003 |
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(In
thousands, except |
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Net sales |
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$ |
281,156 |
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$ |
229,509 |
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Cost and expenses: |
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Cost of sales |
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245,086 |
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194,525 |
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Selling, general and administrative expense |
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13,108 |
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12,855 |
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Depreciation and amortization |
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12,730 |
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12,014 |
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Gain on sale of land |
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(454 |
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— |
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Operating income |
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10,686 |
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10,115 |
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Other income (expense): |
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Interest expense |
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(820 |
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(975 |
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Other, net |
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335 |
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1,459 |
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Income before income taxes |
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10,201 |
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10,599 |
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Income tax expense |
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(3,774 |
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(3,816 |
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Net income attributable to common stockholders |
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$ |
6,427 |
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$ |
6,783 |
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Earnings per common share: |
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Basic net earnings |
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$ |
0.39 |
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$ |
0.41 |
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Diluted net earnings |
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$ |
0.39 |
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$ |
0.41 |
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Weighted average number of shares outstanding: |
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