-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, UIZFLw+8FCCUsSYruuwD/kQro4qw0WPgjzdMvJscsOK9DgBTRarNsQuVJXNkpsVM tiwpM1MGFZRkB5zq55iA/g== 0000891020-94-000123.txt : 19940817 0000891020-94-000123.hdr.sgml : 19940817 ACCESSION NUMBER: 0000891020-94-000123 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940630 FILED AS OF DATE: 19940810 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PACCAR INC CENTRAL INDEX KEY: 0000075362 STANDARD INDUSTRIAL CLASSIFICATION: 3711 IRS NUMBER: 910351110 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-06394 FILM NUMBER: 94542664 BUSINESS ADDRESS: STREET 1: 777 106TH AVE NE CITY: BELLEVUE STATE: WA ZIP: 98004 BUSINESS PHONE: 2064557400 MAIL ADDRESS: STREET 1: 777 106TH AVENUE NE CITY: BELLEVUE STATE: WA ZIP: 98004 FORMER COMPANY: FORMER CONFORMED NAME: PACIFIC CAR & FOUNDRY CO DATE OF NAME CHANGE: 19720707 10-Q 1 FORM 10-Q 1 ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q [x] Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the period ended June 30, 1994 Commission File No. 0-6394 PACCAR Inc - - -------------------------------------------------------------------------------- (Exact name of Registrant as specified in its charter)
Delaware 91-0351110 - - -------------------------------------- ------------------------------------ (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 777 - 106th Ave. N.E., Bellevue, WA 98004 - - -------------------------------------- ------------------------------------ (Address of principal executive offices) (Zip Code)
(206) 455-7400 - - -------------------------------------------------------------------------------- (Registrant's telephone number, including area code) 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 at least the past 90 days. Yes X No ----- ----- Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common Stock, $12 par value--38,858,281 shares as of July 31, 1994 __________________________________________________________________ 2 FORM 10-Q PACCAR Inc AND SUBSIDIARIES ________________________________________________________________________________ INDEX
Page ---- PART I. FINANCIAL INFORMATION: ITEM 1. FINANCIAL STATEMENTS: Consolidated Statements of Income -- Three and Six Months Ended June 30, 1994 and 1993................ 3 Condensed Consolidated Balance Sheets -- June 30, 1994 and December 31, 1993.............................. 4 Condensed Consolidated Statements of Cash Flows -- Six Months Ended June 30, 1994 and 1993.......................... 6 Notes to Consolidated Financial Statements.......................... 7 ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION.............................. 8 PART II. OTHER INFORMATION: ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K................................ 10 SIGNATURE................................................................. 11 INDEX TO EXHIBITS......................................................... 12
-2- 3 FORM 10-Q PACCAR Inc AND SUBSIDIARIES PART I--FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS ________________________________________________________________________________ Consolidated Statements of Income (Unaudited) (Millions except per share amounts) ================================================================================
Three Months Ended Six Months Ended June 30 June 30 ________________________________________________________________________________ 1994 1993 1994 1993 ________________________________________________________________________________ MANUFACTURING: Revenues Net sales $1,070.8 $838.0 $2,057.1 $1,599.4 Other .5 2.3 1.3 6.2 ________________________________________________________________________________ 1,071.3 840.3 2,058.4 1,605.6 Costs and Expenses Cost of sales 924.4 735.3 1,780.4 1,403.6 Selling, general and administrative 81.7 68.6 158.3 137.3 Interest .6 .5 1.1 1.0 ________________________________________________________________________________ 1,006.7 804.4 1,939.8 1,541.9 ________________________________________________________________________________ Manufacturing Income Before Income Taxes 64.6 35.9 118.6 63.7 FINANCIAL SERVICES: Revenues 49.5 39.5 95.1 78.6 Costs and Expenses Interest and other 24.3 19.0 45.7 38.4 Operating 10.5 8.9 20.7 17.5 Provision for losses on receivables .4 1.9 2.0 3.8 ________________________________________________________________________________ 35.2 29.8 68.4 59.7 ________________________________________________________________________________ Financial Services Income Before Income Taxes 14.3 9.7 26.7 18.9 OTHER: Investment income 5.8 3.8 10.8 7.6 Minority interest and other (5.8) .3 (9.2) .6 ________________________________________________________________________________ Total Income Before Income Taxes 78.9 49.7 146.9 90.8 Income tax expense 28.3 16.9 52.7 30.6 ________________________________________________________________________________ Net Income $ 50.6 $ 32.8 $ 94.2 $ 60.2 ================================================================================ Weighted average number of common shares outstanding 38.9 38.9 38.9 38.9 ================================================================================ Per Share Data: Net income $ 1.30 $ .85 $ 2.42 $ 1.55 ================================================================================ Dividends declared $ .25 $ .22 $ .50 $ .44 ================================================================================
See Notes to Consolidated Financial Statements. -3- 4 FORM 10-Q PACCAR Inc AND SUBSIDIARIES
_______________________________________________________________________________ Condensed Consolidated Balance Sheets June 30 December 31 ASSETS (Millions of Dollars) 1994 1993* _______________________________________________________________________________ MANUFACTURING: (Unaudited) Current Assets Cash and equivalents $ 254.0 $ 206.2 Trade receivables, net 293.1 182.8 Marketable securities 238.3 235.7 Inventories 205.4 193.7 Deferred taxes and other current assets 69.0 57.0 _______________________________________________________________________________ Total Manufacturing Current Assets 1,059.8 875.4 Investments and Other 80.4 124.1 Property, Plant and Equipment, Net 363.8 344.4 _______________________________________________________________________________ Total Manufacturing Assets 1,504.0 1,343.9 _______________________________________________________________________________ FINANCIAL SERVICES: Cash and equivalents 14.4 17.0 Notes, contracts and other receivables, net of allowance for losses 2,187.4 2,024.6 Less unearned interest (166.4) (155.9) _______________________________________________________________________________ 2,021.0 1,868.7 Equipment on operating leases, net 49.3 47.9 Other assets 14.0 13.7 _______________________________________________________________________________ Total Financial Services Assets 2,098.7 1,947.3 _______________________________________________________________________________ $3,602.7 $3,291.2 ===============================================================================
-4- 5 FORM 10-Q PACCAR Inc AND SUBSIDIARIES
_______________________________________________________________________________ June 30 December 31 LIABILITIES AND STOCKHOLDERS' EQUITY 1994 1993* _______________________________________________________________________________ MANUFACTURING: (Unaudited) Current Liabilities Accounts payable and accrued expenses $ 579.3 $ 458.5 Income taxes 25.7 21.3 Dividend payable 33.8 Other 1.8 2.0 _______________________________________________________________________________ Total Manufacturing Current Liabilities 606.8 515.6 Long-Term Debt 11.4 11.7 Other 62.0 72.1 _______________________________________________________________________________ Total Manufacturing Liabilities 680.2 599.4 _______________________________________________________________________________ FINANCIAL SERVICES: Accounts payable and accrued expenses 35.7 49.3 Commercial paper and bank loans 561.6 696.0 Long-term debt 973.0 709.1 Deferred income taxes and other 131.2 129.9 _______________________________________________________________________________ Total Financial Services Liabilities 1,701.5 1,584.3 _______________________________________________________________________________ MINORITY INTEREST 43.0 STOCKHOLDERS' EQUITY Preferred stock, no par value: Authorized 1,000,000 shares, none issued Common stock, $12 par value: Authorized 100,000,000 shares, issued 38,858,281 shares 466.3 466.3 Additional paid-in capital 218.0 217.9 Retained earnings 543.3 468.6 Currency translation and other adjustments (49.6) (45.3) _______________________________________________________________________________ Total Stockholders' Equity 1,178.0 1,107.5 _______________________________________________________________________________ $3,602.7 $3,291.2 ===============================================================================
* The December 31, 1993, condensed consolidated balance sheet has been derived from audited financial statements. See Notes to Consolidated Financial Statements. -5- 6 FORM 10-Q PACCAR Inc AND SUBSIDIARIES _______________________________________________________________________________ Condensed Consolidated Statements of Cash Flows (Unaudited) (Millions of Dollars)
=============================================================================== Six Months Ended June 30 1994 1993 _______________________________________________________________________________ NET CASH PROVIDED BY OPERATING ACTIVITIES $ 102.7 $ 42.6 INVESTING ACTIVITIES: Loans and finance leases originated (564.2) (391.8) Collections on loans and finance leases 403.3 262.8 Net (increase) decrease in wholesale receivables 32.0 (5.6) Marketable securities purchased (772.5) (84.1) Marketable securities sales and maturities 775.0 84.4 Acquisition of controlling interest in affiliate, net of cash consolidated 44.3 Acquisition of property, plant and equipment (20.3) (56.9) Acquisition of equipment for operating leases (10.9) (3.1) Proceeds from asset disposals 11.2 12.7 Other (3.5) 1.7 _______________________________________________________________________________ Net Cash Used in Investing Activities (105.6) (179.9) FINANCING ACTIVITIES: Purchase of treasury stock (1.2) Net decrease in commercial paper and bank loans (153.5) (8.9) Cash dividends (55.0) (27.1) Proceeds of long-term debt 352.8 243.6 Payment of long-term debt (90.3) (128.5) _______________________________________________________________________________ Net Cash Provided by Financing Activities 54.0 77.9 Effect of exchange rate changes on cash (5.9) (.1) _______________________________________________________________________________ Net Increase (Decrease) in Cash and Equivalents 45.2 (59.5) Cash and equivalents at beginning of period 223.2 250.4 _______________________________________________________________________________ Cash and equivalents at end of period $ 268.4 $ 190.9 ===============================================================================
See Notes to Consolidated Financial Statements. -6- 7 FORM 10-Q PACCAR Inc AND SUBSIDIARIES _______________________________________________________________________________ Notes to Consolidated Financial Statements (Millions of Dollars) =============================================================================== NOTE A--Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q and do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. For further information, refer to the consolidated financial statements and footnotes included in the Company's annual report on Form 10-K for the year ended December 31, 1993. Reclassifications: Certain prior year amounts have been reclassified to conform to the 1994 presentation. NOTE B--Accounting Change Effective January 1, 1994, the Company adopted Financial Accounting Standards Board Statement No. 115, Accounting for Certain Investments in Debt and Equity Securities. The adoption had no material impact on the Company's financial position or results of operations. NOTE C--Inventories
_______________________________________________________________________________ June 30 December 31 1994 1993 _______________________________________________________________________________ Inventories at FIFO cost: (Unaudited) Finished products $ 171.8 $ 166.7 Work in process and raw materials 157.6 147.8 _______________________________________________________________________________ 329.4 314.5 Less excess of FIFO cost over LIFO (124.0) (120.8) _______________________________________________________________________________ $ 205.4 $ 193.7 ===============================================================================
Under the LIFO method of accounting (used for approximately 78% of June 30, 1994, inventories), an actual valuation can be made only at the end of each year based on year-end inventory levels and costs. Accordingly, interim valuations are based on management's estimates of those year-end amounts. Based on present estimates of 1994 year-end inventory levels, no significant liquidations of LIFO inventory quantities are expected. Because inventory levels and costs are subject to many forces beyond management's control, the present estimates are subject to the final year-end LIFO inventory valuation. -7- 8 FORM 10-Q PACCAR Inc AND SUBSIDIARIES ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION RESULTS OF OPERATIONS: PACCAR's consolidated sales in the second quarter surpassed the billion dollar level for the first time and net income of $50.6 million reflected record earnings from operations. First half net income improved 56% on a 29% sales gain compared to year-earlier amounts. Higher truck unit sales volumes and stronger Financial Services segment results provided most of the improvement, but virtually all divisions reported better results. As previously announced, PACCAR became the majority owner of its Mexican affiliate, VILPAC, S.A., by increasing ownership to 55% from 49%. Accordingly, beginning in 1994, consolidated results for PACCAR include VILPAC, which accounts for approximately 30% of the increase in second quarter and first half manufacturing net sales. Customer demand for Kenworth and Peterbilt products in the U.S. and Canada have kept truck backlogs high as the Company's plants continue to operate near capacity levels. PACCAR's truck operations in Mexico, Australia and the United Kingdom all reflected higher sales and greater profitability for both the second quarter and first half of 1994 compared to the prior year. The Auto Parts segment continued to show improvement. Despite slightly lower sales, operating results gained over the comparable year-earlier amounts for both the second quarter and first half. For the Financial Services segment, pretax earnings improved 47% in the second quarter and 41% year-to-date compared to 1993. Higher earnings resulted primarily from loan and lease portfolio growth in domestic as well as international operations. -8- 9 FORM 10-Q PACCAR Inc AND SUBSIDIARIES LIQUIDITY AND CAPITAL RESOURCES: PACCAR's ratio of manufacturing current assets to current liabilities at June 30, 1994, improved to 1.75, from 1.70 at year-end. Net current assets increased $93.2 million in the first half of 1994. In the first half of 1994, the Company used cash from operations together with net proceeds from long-term borrowings to fund the net increase in Financial Services receivables, pay the special year-end and regular quarterly cash dividends and reduce short-term debt. The higher capital additions activity in 1993 represented costs related to construction of the Kenworth manufacturing facility. In January 1994, PACCAR purchased an additional interest in its Mexican affiliate. The net increase in cash and equivalents at June 30, 1994, occurred primarily as a result of consolidating the Mexican affiliate, which had previously been accounted for on an equity basis. Other information on liquidity and sources of capital as presented in the 1993 Annual Report to Stockholders continues to be relevant. -9- 10 FORM 10-Q PACCAR Inc AND SUBSIDIARIES PART II--OTHER INFORMATION For Items 1, 2, 3 and 5, there was no reportable information for any of the three months ended June 30, 1994. Reportable information in response to Item 4 was previously reported on Form 10-Q for the quarter ended March 31, 1994. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (a) Exhibits. The exhibits filed herewith are listed in the accompanying index to exhibits. (b) No reports on Form 8-K have been filed for the quarter ended June 30, 1994. -10- 11 FORM 10-Q PACCAR Inc AND SUBSIDIARIES SIGNATURE 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. PACCAR Inc -------------------------------------- (Registrant) Date August 9, 1994 By /s/ G. D. Hatchel -------------------------- ------------------------------------ G. D. Hatchel Vice President and Controller (Authorized Officer and Chief Accounting Officer) -11- 12 FORM 10-Q PACCAR Inc AND SUBSIDIARIES INDEX TO EXHIBITS Exhibit (in order of assigned index numbers) 3 Articles of incorporation and bylaws: (a) PACCAR Inc Certificate of Incorporation, as amended to April 27, 1990 (incorporated by reference to the Quarterly Report on Form 10- Q for the quarter ended March 31, 1990). (b) PACCAR Inc Bylaws, as amended to April 26, 1994 (incorporated by reference to the Quarterly Report on Form 10-Q for the quarter ended March 31, 1994). 4 Instruments defining the rights of security holders, including indentures: (a) Rights agreement dated as of December 21, 1989, between PACCAR Inc and First Chicago Trust Company of New York setting forth the terms of the Series A Junior Participating Preferred Stock, no par value per share (incorporated by reference to Exhibit 1 of the Current Report on Form 8-K of PACCAR Inc dated December 27, 1989). (b) Indenture for Senior Debt Securities dated as of December 1, 1983, between PACCAR Financial Corp. and Citibank, N.A., Trustee (incorporated by reference to Exhibit 4.1 of the Annual Report on Form 10-K of PACCAR Financial Corp. for the year ended December 31, 1983). (c) First Supplemental Indenture dated as of June 19, 1989, between PACCAR Financial Corp. and Citibank, N.A., Trustee (incorporated by reference to Exhibit 4.2 to PACCAR Financial Corp.'s registration statement on Form S-3, Registration No. 33-29434). (d) Forms of Medium-Term Note, Series E (incorporated by reference to Exhibits 4.3A, 4.3B and 4.3C to PACCAR Financial Corp.'s Registration Statement on Form S-3 dated June 23, 1989, Registration Number 33-29434, and Forms of Medium-Term Note, Series E, incorporated by reference to Exhibit 4.3B.1 to PACCAR Financial Corp.'s Current Report on Form 8-K, dated December 19, 1991, under Commission File Number 0-12553). Letter of Representation among PACCAR Financial Corp., Citibank, N.A. and the Depository Trust Company, Series E, dated July 6, 1989 (incorporated by reference to Exhibit 4.3 of PACCAR Financial Corp.'s Annual Report on Form 10-K, dated March 29, 1990, File Number 0-12553). (e) Forms of Medium-Term Note, Series F (incorporated by reference to Exhibits 4.3A, 4.3B and 4.3C to PACCAR Financial Corp.'s Registration Statement on Form S-3 dated May 26, 1992, Registration Number 33-48118). Form of Letter of Representation among PACCAR Financial Corp., Citibank, N.A. and the Depository Trust Company, Series F (incorporated by reference to Exhibit 4.4 to PACCAR Financial Corp.'s Registration Statement on Form S-3 dated May 26, 1992, Registration Number 33-48118). -12- 13 FORM 10-Q PACCAR Inc AND SUBSIDIARIES INDEX TO EXHIBITS Exhibit (in order of assigned index numbers) (f) Forms of Medium-Term Note, Series G (incorporated by reference to Exhibits 4.3A and 4.3B to PACCAR Financial Corp.'s Registration Statement on Form S-3 dated December 8, 1993, Registration Number 33-51335). Form of Letter of Representation among PACCAR Financial Corp., Citibank, N.A. and the Depository Trust Company, Series G (incorporated by reference to Exhibit 4.4 to PACCAR Financial Corp.'s Registration Statement on Form S-3 dated December 8, 1993, Registration Number 33-51335). 10 Material contracts: (a) PACCAR Inc Incentive Compensation Plan (incorporated by reference to Exhibit (10)(a) of the Annual Report on Form 10-K for the year ended December 31, 1980). (b) PACCAR Inc Deferred Compensation Plan for Directors (incorporated by reference to Exhibit (10)(b) of the Annual Report on Form 10-K for the year ended December 31, 1980). (c) Supplemental Retirement Plan (incorporated by reference to Exhibit (10)(c) of the Annual Report on Form 10-K for the year ended December 31, 1980). (d) 1981 Long Term Incentive Plan (incorporated by reference to Exhibit A of the 1982 Proxy Statement, dated March 25, 1982). (e) Amendment to 1981 Long Term Incentive Plan (incorporated by reference to Exhibit (10)(a) of the Quarterly Report on Form 10-Q for the quarter ended March 31, 1991). (f) PACCAR Inc 1991 Long-Term Incentive Plan (incorporated by reference to Exhibit (10)(h) of the Quarterly Report on Form 10-Q for the quarter ended June 30, 1992). (g) Amended and Restated Deferred Incentive Compensation Plan (incorporated by reference to Exhibit (10)(g) of the Annual Report on Form 10-K for the year ended December 31, 1993). -13- -----END PRIVACY-ENHANCED MESSAGE-----