-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ou18dnVEqbjzy1Rnu6p2IZA9AyJ76Q01h0D3JZa713YUiJIKBuBBgf4Ik9y9I4I5 RXXphvyIbTA6s6YQcbf45g== 0000912057-96-008596.txt : 19960509 0000912057-96-008596.hdr.sgml : 19960509 ACCESSION NUMBER: 0000912057-96-008596 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960508 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: PACCAR INC CENTRAL INDEX KEY: 0000075362 STANDARD INDUSTRIAL CLASSIFICATION: MOTOR VEHICLES & PASSENGER CAR BODIES [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: 96558087 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 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- 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 quarterly period ended March 31, 1996 [ ] Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from _________ to _________ 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) - -------------------------------------------------------------------------------- (Former name, former address and former fiscal year, if changed since last report) 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 periods 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--38,862,359 shares as of April 30, 1996 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- PACCAR Inc AND SUBSIDIARIES - -------------------------------------------------------------------------------- INDEX Page ---- PART I. FINANCIAL INFORMATION: ITEM 1. FINANCIAL STATEMENTS: Consolidated Statements of Income -- Three Months Ended March 31, 1996 and 1995. . . . . . . . . . . . 3 Condensed Consolidated Balance Sheets -- March 31, 1996, and December 31, 1995 . . . . . . . . . . . . . . 4 Condensed Consolidated Statements of Cash Flows -- Three Months Ended March 31, 1996 and 1995. . . . . . . . . . . . 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 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS. . . . . . 9 ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K . . . . . . . . . . . . . . . 9 SIGNATURE. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 INDEX TO EXHIBITS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 -2- 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 March 31 1996 1995 - -------------------------------------------------------------------------------- MANUFACTURING AND PARTS: Revenues Net sales $1,027.7 $1,123.7 Other .2 5.9 - -------------------------------------------------------------------------------- 1,027.9 1,129.6 Costs and Expenses Cost of sales 895.0 979.0 Selling, general and administrative 99.7 84.9 Interest .6 .5 - -------------------------------------------------------------------------------- 995.3 1,064.4 - -------------------------------------------------------------------------------- Manufacturing and Parts Income Before Income Taxes 32.6 65.2 FINANCIAL SERVICES: Revenues 66.9 59.9 Costs and Expenses Interest and other 37.3 33.7 Selling, general and administrative 11.8 10.8 Provision for losses on receivables 1.1 4.8 - -------------------------------------------------------------------------------- 50.2 49.3 - -------------------------------------------------------------------------------- Financial Services Income Before Income Taxes 16.7 10.6 OTHER: Investment income 6.2 6.5 Other .3 .9 - -------------------------------------------------------------------------------- Total Income Before Income Taxes 55.8 83.2 Income taxes 20.1 28.9 - -------------------------------------------------------------------------------- Net Income $ 35.7 $ 54.3 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Weighted average number of common shares outstanding 38.9 38.9 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Per Share Data: Net income $ .92 $ 1.40 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Dividends declared $ .25 $ .25 - -------------------------------------------------------------------------------- - --------------------------------------------------------------------------------
See Notes to Consolidated Financial Statements. -3- FORM 10-Q PACCAR Inc AND SUBSIDIARIES
- ------------------------------------------------------------------------------------------ Condensed Consolidated Balance Sheets March 31 December 31 ASSETS (Millions of Dollars) 1996 1995* - ------------------------------------------------------------------------------------------ MANUFACTURING AND PARTS: (Unaudited) Current Assets Cash and equivalents $ 109.1 $ 172.0 Trade receivables - net 266.8 227.7 Marketable securities 416.0 437.3 Inventories 232.3 239.5 Deferred taxes and other current assets 54.8 60.1 - ----------------------------------------------------------------------------------------- Total Manufacturing and Parts Current Assets 1,079.0 1,136.6 Deferred Taxes, Goodwill and Other 85.9 87.3 Property, Plant and Equipment, Net 429.6 422.3 - ----------------------------------------------------------------------------------------- Total Manufacturing and Parts Assets 1,594.5 1,646.2 - ----------------------------------------------------------------------------------------- FINANCIAL SERVICES: Cash and equivalents 11.7 12.0 Finance and other receivables, net of allowance for losses 2,883.3 2,887.7 Less unearned interest (222.1) (224.4) - ----------------------------------------------------------------------------------------- 2,661.2 2,663.3 Equipment on operating leases, net 45.2 49.8 Other assets 20.9 19.2 - ----------------------------------------------------------------------------------------- Total Financial Services Assets 2,739.0 2,744.3 - ----------------------------------------------------------------------------------------- $4,333.5 $4,390.5 - ----------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------
-4- FORM 10-Q PACCAR Inc AND SUBSIDIARIES
- ----------------------------------------------------------------------------------------- March 31 December 31 LIABILITIES AND STOCKHOLDERS' EQUITY 1996 1995* - ----------------------------------------------------------------------------------------- MANUFACTURING AND PARTS: (Unaudited) Current Liabilities Accounts payable and accrued expenses $ 596.3 $ 559.1 Income taxes 29.0 11.6 Dividend payable 116.6 Other .5 .5 - ----------------------------------------------------------------------------------------- Total Manufacturing and Parts Current Liabilities 625.8 687.8 Long-Term Debt 11.3 10.7 Other 127.4 118.1 - ----------------------------------------------------------------------------------------- Total Manufacturing and Parts Liabilities 764.5 816.6 - ----------------------------------------------------------------------------------------- FINANCIAL SERVICES: Accounts payable and accrued expenses 28.5 70.1 Commercial paper and bank loans 951.0 952.4 Long-term debt 1,165.1 1,149.6 Deferred income taxes and other 147.9 150.6 - ----------------------------------------------------------------------------------------- Total Financial Services Liabilities 2,292.5 2,322.7 - ----------------------------------------------------------------------------------------- STOCKHOLDERS' EQUITY Preferred stock, no par value: Authorized 1.0 million shares, none issued Common stock, $12.00 par value: Authorized 100.0 million shares, issued 38.9 million shares 466.3 466.3 Additional paid-in capital 218.7 218.7 Retained earnings 679.8 653.8 Currency translation and net unrealized investment adjustments (88.3) (87.6) - ----------------------------------------------------------------------------------------- Total Stockholders' Equity 1,276.5 1,251.2 - ----------------------------------------------------------------------------------------- $4,333.5 $4,390.5 - ----------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------
* The December 31, 1995 condensed consolidated balance sheet has been derived from audited financial statements. See Notes to Consolidated Financial Statements. -5- FORM 10-Q PACCAR Inc AND SUBSIDIARIES
- ----------------------------------------------------------------------------------------- Condensed Consolidated Statements of Cash Flows (Unaudited) (Millions of Dollars) - ----------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------- Three Months Ended March 31 1996 1995 - ----------------------------------------------------------------------------------------- NET CASH PROVIDED BY OPERATING ACTIVITIES $ 43.2 $ 38.7 INVESTING ACTIVITIES: Finance receivables originated (296.5) (255.3) Collections on finance receivables 269.7 241.9 Net (increase) decrease in wholesale receivables 23.8 (31.1) Marketable securities purchased (313.9) (491.6) Marketable securities sales and maturities 332.4 488.7 Acquisition of property, plant, and equipment (18.1) (18.7) Acquisition of equipment for operating leases (3.7) Proceeds from asset disposals 8.7 8.8 Other (.2) 3.9 - ----------------------------------------------------------------------------------------- Net Cash Provided by (Used in) Investing Activities 5.9 (57.1) FINANCING ACTIVITIES: Net increase (decrease) in commercial paper and bank loans (2.8) 97.9 Cash dividends (126.3) (87.4) Proceeds of long-term debt 139.8 133.9 Payments of long-term debt (125.0) (117.9) - ----------------------------------------------------------------------------------------- Net Cash (Used in) Provided by Financing Activities (114.3) 26.5 Effect of exchange rate changes on cash 2.0 (12.1) - ----------------------------------------------------------------------------------------- Net Decrease in Cash and Equivalents (63.2) (4.0) Cash and equivalents at beginning of period 184.0 311.3 - ---------------------------------------------------------------------------------------- Cash and equivalents at end of period $120.8 $307.3 - ----------------------------------------------------------------------------------------- - -----------------------------------------------------------------------------------------
See Notes to Consolidated Financial Statements. -6- 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, 1995. RECLASSIFICATIONS: Certain prior year amounts have been reclassified to conform to the 1996 presentation. NOTE B--Inventories
- ------------------------------------------------------------------------------- March 31 December 31 1996 1995 - ------------------------------------------------------------------------------- (Unaudited) Inventories at FIFO cost: Finished products $205.3 $201.6 Work in process and raw materials 161.1 170.5 - ------------------------------------------------------------------------------- 366.4 372.1 Less excess of FIFO cost over LIFO (134.1) (132.6) - ------------------------------------------------------------------------------- $232.3 $239.5 - ------------------------------------------------------------------------------- - -------------------------------------------------------------------------------
Under the LIFO method of accounting (used for approximately 84% of March 31, 1996 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 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- FORM 10-Q PACCAR Inc AND SUBSIDIARIES ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION RESULTS OF OPERATIONS: First quarter 1996 sales and net income for PACCAR declined from the record levels of 1995. Consolidated net sales decreased 9% to $1.0 billion compared to $1.1 billion in the first quarter of 1995. Net income for the quarter decreased 34% to $35.7 million from $54.3 million for the first three months of last year. Improvements in Financial Services pretax income of 58% or $6.1 million partially offset the $32.6 million or 50% decrease in Manufacturing and Parts income before income taxes. An industry wide decrease in demand for heavy and medium duty trucks in the United States, Canada and Australia, as well as costs for eliminating excess truck production capacity contributed to the decline in Manufacturing and Parts profitability in the first quarter of 1996. PACCAR's selling, general and administrative expense increased 17% due to excess capacity elimination costs, represented by an $18 million pretax charge to close a truck plant in Ste-Therese, Quebec, Canada, and to cease truck production at its Seattle plant. PACCAR's other product areas include auto parts, winches and oilfield equipment. Combined sales remained comparable to 1995, however, overall profitability decreased. Only the auto parts operations achieved favorable comparisons for both sales and profits. Financial services net loan and lease portfolios at the end of the quarter were 16% above March 31, 1995 balances. Segment income before income taxes benefited from the larger corresponding portfolios as well as from lower credit loss provisions. In 1995, the Mexican finance subsidiary required additional credit loss provisions. Balances at March 31, 1996, however, have declined slightly from December 31, 1995, reflecting the easing in demand for new truck sales and associated financings. LIQUIDITY AND CAPITAL RESOURCES: PACCAR's ratio of manufacturing current assets to current liabilities at March 31, 1996 increased to 1.72 from 1.65 at December 31, 1995. During the first quarter of 1996 the Company used cash from operations in addition to cash reserves to pay the special year-end and regular first quarter dividends. Cash from net lending and borrowing activities offset net capital additions requirements. Other information on liquidity and sources of capital as presented in the 1995 Annual Report to Stockholders continues to be relevant. -8- 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 March 31, 1996. ITEM 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS (a) The annual meeting of stockholders was held on April 30, 1996. (b) The following persons were elected to serve as directors: CLASS I - TERM EXPIRING IN 1999 John M. Fluke, Jr. David J. Hovind Michael A. Tembreull James H. Wiborg Other persons whose term of office as a director continued after the meeting: CLASS II - TERM EXPIRING IN 1997 Harold J. Haynes James C. Pigott Mark C. Pigott CLASS III - TERM EXPIRING IN 1998 Charles M. Pigott John W. Pitts Dr. Carl H. Hahn (c) None (d) None 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 March 31, 1996 -9- 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 May 8, 1996 By /s/ G. D. Hatchel --------------------------- --------------------------- G. D. Hatchel Vice President and Controller (Authorized Officer and Chief Accounting Officer) -10- 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). -11- 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). (g) Forms of Medium-Term Note, Series H (incorporated by reference to Exhibits 4.3A and 4.3B to PACCAR Financial Corp.'s Registration Statement on Form S-3 dated March 11, 1996, Registration Number 333-01623). Form of Letter of Representation among PACCAR Financial Corp., Citibank, N.A. and the Depository Trust Company, Series H (incorporated by reference to Exhibit 4.4 to PACCAR Financial Corp.'s Registration Statement on Form S-3 dated March 11, 1996, Registration Number 333-01623). 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). 27 Financial Data Schedule -12- EX-27 2 FINANCIAL DATA SCHEDULE
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE CONSOLIDATED STATEMENTS OF INCOME FOR THE THREE MONTHS ENDED MARCH 31, 1996 AND 1995, AND THE CONDENSED CONSOLIDATED BALANCE SHEETS, MARCH 31, 1996, AND DECEMBER 31, 1995, OF PACCAR INC. AND SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000 3-MOS DEC-31-1996 MAR-31-1996 120,800 416,000 2,928,000 0 232,300 0 429,600 0 4,333,500 0 1,176,400 0 0 466,300 810,200 4,333,500 1,027,700 1,094,800 895,000 932,300 0 1,100 600 55,800 20,100 35,700 0 0 0 35,700 .92 .92
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