Note 6: JOINT VENTURESInvestments, advances and equity in undistributed earnings of
joint ventures were as follows at November 30:
| (In thousands) |
2007 |
2006 |
|
| Investments -- equity method |
$ 14,677 |
$ 14,501 |
| Investments -- cost method |
3,784 |
3,784 |
| |
|
| |
$ 18,461 |
$ 18,285 |
|
|
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) |
|
Fiberglass
pipe |
Concrete
pipe |
Steel
products |
Total |
|
| Cost |
|
$ 3,784 |
$ - |
$ 8,482 |
$ 12,266 |
| Accumulated comprehensive
loss from joint venture |
|
- |
- |
(1,146) |
(1,146) |
| Accumulated equity in
undistributed earnings |
|
- |
- |
7,341 |
7,341 |
| |
|
| Investment, November 30, 2007 |
|
$ 3,784 |
$ - |
$ 14,677 |
$ 18,461 |
| |
|
| 2007 Dividends |
|
$ 2,451 |
$ - |
$ 16,792 |
$ 19,243 |
|
Cost |
|
$ 3,784 |
$
- |
$ 8,482 |
$ 12,266 |
| Accumulated comprehensive loss from joint venture |
|
- |
- |
(1,096) |
(1,096 |
| Accumulated equity in undistributed earnings |
|
- |
-
|
7,115 |
7,115 |
| |
|
| Investment, November 30, 2006 |
|
$ 3,784 |
$ - |
$ 14,501 |
$ 18,285 |
| |
|
| 2006 Dividends |
|
$ — |
$ - |
$ 15,004 |
$ 15,004 |
|
|
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, 2007. Condensed
financial data of TAMCO, an investment which is accounted for
under the equity method,were as follows:
| Financial Condition (at November 30,) |
| (In thousands) |
2007 |
2006 |
|
| Current assets |
$ 80,167 |
$ 64,766 |
| Noncurrent assets |
40,215 |
34,189 |
| |
|
|
| |
$ 120,382 |
$ 98,955 |
| |
|
|
| Current liabilities |
$ 67,147 |
$ 46,434 |
| Noncurrent liabilities |
8,140 |
7,780 |
| Stockholders' equity |
45,095 |
44,741 |
| |
|
|
| |
$ 120,382 |
$ 98,955 |
|
|
|
| Results of Operations (year ended November 30,) |
| (In thousands) |
2007 |
2006 |
2005 |
|
| Net sales |
$ 268,208 |
$273,036 |
$252,435 |
| Gross profit |
66,494 |
61,336 |
42,188 |
| Net income |
34,037 |
30,559 |
20,391 |
|
|
The Company recognized $1,146,000 and $1,096,000 in accumulated
other comprehensive loss at November 30, 2007 and 2006,
respectively, which represents its proportionate share of TAMCO’s
accumulated other comprehensive loss.
Sales to joint ventures totaled $3,873,000 in 2007, $5,888,000 in 2006,
and $1,524,000 in 2005. |
