filings.toolsPACCAR 10-Q 2023-03-31
Filed 2023-05-02. 4 sections, 175K characters. Original on sec.gov · Markdown · JSON
Cover and table of contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
| ☒ | Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|
For the quarterly period ended March 31, 2023
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 No. 001-14817
PACCAR Inc
(Exact name of registrant as specified in its charter)
| Delaware | 91-0351110 |
|---|---|
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
| 777 - 106th Ave. N.E., Bellevue, WA | 98004 |
| (Address of principal executive offices) | (Zip Code) |
(425) 468-7400
(Registrant's telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
| Title of Each Class | Trading Symbol(s) | Name of Each Exchange on Which Registered |
|---|---|---|
| Common stock, $1 par value | PCAR | The Nasdaq Stock Market |
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 ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b‑2 of the Exchange Act.
| Large accelerated filer | ☒ | Accelerated filer | ☐ | ||
|---|---|---|---|---|---|
| Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||
| Emerging growth company | ☐ |
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ 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, $1 par value — 522,579,036 shares as of April 28, 2023
PACCAR Inc – Form 10-Q
INDEX
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PART I – FINANCIAL INFORMATION
Item 1. FINANCIAL STATEMENTS
Consolidated Statements of Comprehensive Income (Unaudited)
(Millions, Except Per Share Amounts)
| Three Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| March 31 | ||||||||
| 2023 | 2022 | |||||||
| TRUCK, PARTS AND OTHER: | ||||||||
| Net sales and revenues | $ | 8,050.1 | $ | 6,106.4 | ||||
| Cost of sales and revenues | 6,493.1 | 5,285.5 | ||||||
| Research and development | 97.2 | 78.0 | ||||||
| Selling, general and administrative | 159.8 | 148.0 | ||||||
| Interest and other expenses (income), net | 578.8 | (32.0 | ) | |||||
| 7,328.9 | 5,479.5 | |||||||
| Truck, Parts and Other Income Before Income Taxes | 721.2 | 626.9 | ||||||
| FINANCIAL SERVICES: | ||||||||
| Interest and fees | 208.0 | 132.3 | ||||||
| Operating lease, rental and other revenues | 215.2 | 233.9 | ||||||
| Revenues | 423.2 | 366.2 | ||||||
| Interest and other borrowing expenses | 93.8 | 39.8 | ||||||
| Depreciation and other expenses | 142.3 | 143.5 | ||||||
| Selling, general and administrative | 35.2 | 35.7 | ||||||
| Provision for losses on receivables | 3.1 | .2 | ||||||
| 274.4 | 219.2 | |||||||
| Financial Services Income Before Income Taxes | 148.8 | 147.0 | ||||||
| Investment income (loss) | 49.0 | (2.5 | ) | |||||
| Total Income Before Income Taxes | 919.0 | 771.4 | ||||||
| Income taxes | 185.1 | 170.9 | ||||||
| Net Income | $ | 733.9 | $ | 600.5 | ||||
| Net Income Per Share | ||||||||
| Basic | $ | 1.40 | $ | 1.15 | ||||
| Diluted | $ | 1.40 | $ | 1.15 | ||||
| Weighted Average Number of Common Shares Outstanding | ||||||||
| Basic | 523.5 | 522.4 | ||||||
| Diluted | 524.4 | 523.3 | ||||||
| Comprehensive Income | $ | 814.1 | $ | 643.9 |
See Notes to Consolidated Financial Statements.
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Consolidated Balance Sheets
(Millions)
| March 31 | December 31 | |||||||
|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 * | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| TRUCK, PARTS AND OTHER: | ||||||||
| Current Assets | ||||||||
| Cash and cash equivalents | $ | 4,283.3 | $ | 4,544.7 | ||||
| Trade and other receivables, net (allowance for losses: 2023 - $.7, 2022 - $.6) | 2,347.0 | 1,919.8 | ||||||
| Marketable securities | 1,638.9 | 1,614.2 | ||||||
| Inventories, net | 2,609.2 | 2,198.8 | ||||||
| Other current assets | 771.2 | 682.0 | ||||||
| Total Truck, Parts and Other Current Assets | 11,649.6 | 10,959.5 | ||||||
| Equipment on operating leases, net | 176.1 | 190.8 | ||||||
| Property, plant and equipment, net | 3,511.6 | 3,468.4 | ||||||
| Other noncurrent assets, net | 1,579.3 | 1,477.2 | ||||||
| Total Truck, Parts and Other Assets | 16,916.6 | 16,095.9 | ||||||
| FINANCIAL SERVICES: | ||||||||
| Cash and cash equivalents | 126.8 | 146.2 | ||||||
| Finance and other receivables, net (allowance for losses: 2023 - $123.8, 2022 - $121.1) | 14,541.7 | 13,791.9 | ||||||
| Equipment on operating leases, net | 2,527.1 | 2,612.5 | ||||||
| Other assets | 714.2 | 629.0 | ||||||
| Total Financial Services Assets | 17,909.8 | 17,179.6 | ||||||
| $ | 34,826.4 | $ | 33,275.5 |
- The December 31, 2022 consolidated balance sheet has been derived from audited financial statements.
See Notes to Consolidated Financial Statements.
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Consolidated Balance Sheets
(Millions)
| March 31 | December 31 | |||||||
|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 * | |||||||
| (Unaudited) | ||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| TRUCK, PARTS AND OTHER: | ||||||||
| Current Liabilities | ||||||||
| Accounts payable, accrued expenses and other | $ | 5,438.5 | $ | 4,511.7 | ||||
| Dividend payable | 974.6 | |||||||
| Total Truck, Parts and Other Current Liabilities | 5,438.5 | 5,486.3 | ||||||
| Residual value guarantees and deferred revenues | 193.5 | 209.2 | ||||||
| Other liabilities | 1,882.2 | 1,490.1 | ||||||
| Total Truck, Parts and Other Liabilities | 7,514.2 | 7,185.6 | ||||||
| FINANCIAL SERVICES: | ||||||||
| Accounts payable, accrued expenses and other | 868.9 | 826.8 | ||||||
| Commercial paper and bank loans | 3,858.8 | 3,604.9 | ||||||
| Term notes | 8,057.0 | 7,866.7 | ||||||
| Deferred taxes and other liabilities | 645.5 | 624.4 | ||||||
| Total Financial Services Liabilities | 13,430.2 | 12,922.8 | ||||||
| STOCKHOLDERS' EQUITY: | ||||||||
| Preferred stock, no par value - authorized 1.0 million shares, none issued | ||||||||
| Common stock, $1 par value - authorized 1.2 billion shares, issued 522.6 and 522.0 million shares | 522.6 | 522.0 | ||||||
| Additional paid-in capital | 230.3 | 196.1 | ||||||
| Treasury stock, at cost - .04 million and nil shares | (3.0 | ) | ||||||
| Retained earnings | 14,005.3 | 13,402.4 | ||||||
| Accumulated other comprehensive loss | (873.2 | ) | (953.4 | ) | ||||
| Total Stockholders' Equity | 13,882.0 | 13,167.1 | ||||||
| $ | 34,826.4 | $ | 33,275.5 |
- The December 31, 2022 consolidated balance sheet has been derived from audited financial statements.
See Notes to Consolidated Financial Statements.
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Condensed Consolidated Statements of Cash Flows (Unaudited)
(Millions)
| Three Months Ended | ||||||||
|---|---|---|---|---|---|---|---|---|
| March 31 | ||||||||
| 2023 | 2022 | |||||||
| OPERATING ACTIVITIES: | ||||||||
| Net Income | $ | 733.9 | $ | 600.5 | ||||
| Adjustments to reconcile net income to cash provided by operations: | ||||||||
| Depreciation and amortization: | ||||||||
| Property, plant and equipment | 103.0 | 74.0 | ||||||
| Equipment on operating leases and other | 118.1 | 111.7 | ||||||
| Provision for losses on financial services receivables | 3.1 | .2 | ||||||
| Other, net | (58.5 | ) | (140.7 | ) | ||||
| Pension contributions | (5.8 | ) | (6.7 | ) | ||||
| Change in operating assets and liabilities: | ||||||||
| Trade and other receivables | (448.6 | ) | (381.0 | ) | ||||
| Wholesale receivables on new trucks | (451.2 | ) | (327.4 | ) | ||||
| Inventories | (401.7 | ) | (230.9 | ) | ||||
| Accounts payable and accrued expenses | 663.1 | 550.3 | ||||||
| Income taxes, warranty and other | 429.4 | 209.3 | ||||||
| Net Cash Provided by Operating Activities | 684.8 | 459.3 | ||||||
| INVESTING ACTIVITIES: | ||||||||
| Originations of retail loans and finance leases | (1,199.3 | ) | (1,221.0 | ) | ||||
| Collections on retail loans and finance leases | 1,030.3 | 974.1 | ||||||
| Net increase in wholesale |
Showing the first 8K of 155K characters. Open the full section
Item 1A. RISK FACTORS
For information regarding risk factors, refer to Part I, Item 1A as presented in the 2022 Annual Report on Form 10-K. There have been no material changes in the Company’s risk factors during the three months ended March 31, 2023.
Item 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
For Items 2(a) and (b), there was no reportable information for the three months ended March 31, 2023.
| (c) | Issuer purchases of equity securities. |
|---|
On December 4, 2018, PACCAR’s Board of Directors approved the repurchase of up to $500.0 million of the Company’s outstanding common stock. As of March 31, 2023, the Company has repurchased $110.0 million of shares under this plan. There were no repurchases made under this plan during the first quarter of 2023.
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| ITEM 6. | EXHIBITS |
|---|
Any exhibits filed herewith are listed in the accompanying index to exhibits.
INDEX TO EXHIBITS
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| Exhibit Number | Exhibit Description | Form | Date of First Filing | Exhibit Number | File Number | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| (r) | Second Amended and Restated PACCAR Inc Restricted Stock and Deferred Compensation Plan for Non-Employee Directors, Form of Amended Restricted Stock Grant Agreement | 10-K | February 26, 2015 | 10(u) | 001-14817 | |||||||
| (31) | Rule 13a-14(a)/15d-14(a) Certifications: | |||||||||||
| (a) | Certification of Principal Executive Officer* | |||||||||||
| (b) | Certification of Principal Financial Officer* | |||||||||||
| (32) | Section 1350 Certifications: | |||||||||||
| Certification pursuant to rule 13a-14(b) and section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. section 1350)* | ||||||||||||
| (101.INS) | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||
| (101.SCH) | Inline XBRL Taxonomy Extension Schema Document* | |||||||||||
| (101.CAL) | Inline XBRL Taxonomy Extension Calculation Linkbase Document* | |||||||||||
| (101.DEF) | Inline XBRL Taxonomy Extension Definition Linkbase Document* | |||||||||||
| (101.LAB) | Inline XBRL Taxonomy Extension Label Linkbase Document* | |||||||||||
| (101.PRE) | Inline XBRL Taxonomy Extension Presentation Linkbase Document* | |||||||||||
| (104) | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)* |
| * | filed herewith |
|---|
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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 2, 2023 | By | /s/ M. T. Barkley | |
| M. T. Barkley | ||||
| Senior Vice President and Controller | ||||
| (Authorized Officer and Chief Accounting Officer) |
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