UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

(Mark One)
x	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended October 31, 2004
OR
¨	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from         to

 

Commission file number 1-12557

 

 

CASCADE CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

Registrant’s telephone number, including area code: (503) 669-6300

 

 

                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 November 29, 2004 was 12,200,722.

 

Forward-Looking Statements

 

                This report contains forward-looking statements that involve risks and uncertainties, as well as assumptions which, if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including any projections of revenue, gross margin, expenses, earnings or losses from operations, synergies or other financial items; any statements of plans, strategies, and objectives of management for future operations; any statements regarding future economic conditions or performance; any statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. The risks, uncertainties, and assumptions referred to above include, but are not limited to, competitive factors in, and the cyclical nature of, the materials handling industry; fluctuations in lift truck orders or deliveries, availability and cost of raw materials; general business and economic conditions in North America, Europe, Australia and Asia; assumptions relating to pension and other post-retirement costs; foreign currency fluctuations; pending litigation; environmental matters; and the effectiveness of our capital expenditures and cost reduction initiatives. We undertake no obligation to publicly revise or update forward-looking statements to reflect events or circumstances that arise after the date of this report.

 

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PART I—FINANCIAL INFORMATION

 

Item 1. Financial Statements

 

CASCADE CORPORATION

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited—in thousands, except per share amounts)

 

		Three Months Ended						Nine Months Ended
		October 31						October 31
		2004			2003			2004			2003
Net sales		$	96,342		$	75,772		$	282,246		$	220,338
Cost of goods sold		65,458			50,948			190,635			147,817
Gross profit		30,884			24,824			91,611			72,521
Selling and administrative expenses		17,631			15,806			53,275			45,575
Amortization		682			117			1,330			313
Insurance litigation recovery		(1,300		)	—			(1,300		)	—
Environmental expense		155			—			155			—
Operating income		13,716			8,901			38,151			26,633
Interest expense		934			1,165			2,758			3,496
Interest income		(144		)	(234		)	(364		)	(779		)
Other (income) expenses		516			126			574			(273		)
Gain on sale of investment		(1,044		)	—			(1,044		)	—
Income before provision for income taxes		13,454			7,844			36,227			24,189
Provision for income taxes		4,763			2,752			12,824			7,982
Net income		8,691			5,092			23,403			16,207
Dividends paid on preferred shares of subsidiary		—			—			—			(30		)
Net income applicable to common shareholders		$	8,691		$	5,092		$	23,403		$	16,177
Basic earnings per share		$	0.71		$	0.42		$	1.93		$	1.36
Diluted earnings per share		$	0.68		$	0.41		$	1.84		$	1.31
Basic weighted average shares outstanding		12,195			12,054			12,149			11,882
Diluted weighted average shares outstanding		12,799			12,534			12,705			12,335

 

The accompanying notes are an integral part of the consolidated financial statements.

 

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CASCADE CORPORATION

CONSOLIDATED BALANCE SHEETS

(Unaudited—in thousands, except per share amounts)

 

		October 31			January 31
		2004			2004
ASSETS
Current assets:
Cash and cash equivalents		$	34,983		$	25,584
Marketable securities		7,342			6,002
Accounts receivable, less allowance for doubtful accounts of $1,889 and $2,023		68,955			57,871
Inventories		41,661			36,353
Deferred income taxes		3,020			2,542
Income taxes receivable		—			142
Prepaid expenses and other		5,485			4,626
Total current assets		161,446			133,120
Property, plant and equipment, net		81,608			75,244
Goodwill		74,568			68,915
Deferred income taxes		9,663			9,703
Other assets		5,099