Note 6: JOINT VENTURESInvestments, advances
and equity in undistributed earnings of joint ventures were as
follows at November 30:
| (In thousands) |
2006 |
2005 |
|
| Investments -- equity method |
$ 14,501 |
$ 13,777 |
| Investments -- cost method |
3,784 |
5,922 |
| |
|
| |
$ 18,285 |
$ 19,699 |
|
|
The Company's
ownership of joint ventures is summarized below:
| Products |
Joint Ventures |
Ownership
Interest |
|
| Fiberglass pipe |
Bondstrand, Ltd. |
40% |
| Concrete pipe |
Ameron Saudi Arabia, Ltd. ("ASAL") |
30% |
| Steel products |
TAMCO |
50% |
Investments in joint
ventures and the amount of undistributed earnings were as
follows:
| (In thousands) |
Discontinued Operations |
Fiberglass
pipe |
Concrete
pipe |
Steel
products |
Total |
|
| Cost |
- |
$ 3,784 |
$ - |
$ 8,482 |
$ 12,266 |
| Comprehensive loss from joint venture |
- |
- |
- |
(1,096) |
(1,096) |
| Accumulated equity in undistributed earnings, net of reserves |
- |
- |
- |
7,115 |
7,115 |
| |
|
| Investment, November 30, 2006 |
- |
$ 3,784 |
$ - |
$14,501 |
$ 18,285 |
| |
|
| Dividends received in 2006 |
- |
- |
$ - |
$15,004 |
$ 15,004 |
|
Cost |
$ 2,138 |
$ 3,784 |
$
- |
$ 8,482 |
$ 14,404 |
Comprehensive loss from joint venture |
- |
- |
- |
(1,544) |
(1,544) |
| Accumulated equity in undistributed
earnings, net of reserves |
- |
- |
-
|
6,839 |
6,839 |
| |
|
Investment, November 30, 2005 |
$ 2,138 |
$ 3,784 |
$ - |
$13,777 |
$ 19,699 |
| |
|
2005 Dividends |
$ 540 |
$ 1,300 |
$ - |
$ 11,952 |
$ 13,792 |
|
|
As part of the sale of the Coatings Business, the Company sold its
40% ownership interest in Oasis-Ameron, Ltd.
The Company provides for income taxes on the undistributed
earnings of its joint ventures to the extent such earnings are
included in the consolidated statements of income.
The investment in TAMCO was recorded based on audited
financial statements as of November 30, 2006. Condensed
financial data of TAMCO, an investment which is accounted for
under the equity method,were as follows:
| Financial Condition |
| (In thousands) |
2006 |
2005 |
|
| Current assets |
$ 64,766 |
$ 65,170 |
| Noncurrent assets |
34,189 |
28,118 |
| |
|
|
| |
$ 98,955 |
$ 93,288 |
| |
|
|
| Current liabilities |
$ 46,434 |
$ 41,605 |
| Noncurrent liabilities |
7,780 |
8,388 |
| Stockholders' equity |
44,741 |
43,295 |
| |
|
|
| |
$ 98,955 |
$ 93,288 |
|
|
|
| Results of Operations |
| (In thousands) |
2006 |
2005 |
2004 |
|
| Net sales |
$273,036 |
$252,435 |
$215,849 |
| Gross profit |
61,336 |
42,188 |
45,885 |
| Net income |
30,559 |
20,391 |
23,427 |
|
|
The Company recognized $1,096,000 and $1,544,000 in accumulated
other comprehensive loss at November 30, 2006 and 2005,
respectively, which represents its proportionate share of amounts
recognized by TAMCO to record minimum pension liability.
Sales to joint ventures totaled $5,888,000 in 2006, $1,524,000 in 2005,
and $1,613,000 in 2004. |
