-----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, JUVCLxJhHId99QG8ZCp7qZK+DSjAPRnooYhXJWROs4Du++YUwcpe9D0JHkcRph5N XpLi0U4JHs9BNTDGvgenHw== 0000038195-97-000006.txt : 19970423 0000038195-97-000006.hdr.sgml : 19970423 ACCESSION NUMBER: 0000038195-97-000006 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970331 FILED AS OF DATE: 19970422 SROS: NASD FILER: COMPANY DATA: COMPANY CONFORMED NAME: FORT HOWARD CORP CENTRAL INDEX KEY: 0000038195 STANDARD INDUSTRIAL CLASSIFICATION: PAPER MILLS [2621] IRS NUMBER: 391090992 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 000-20473 FILM NUMBER: 97584615 BUSINESS ADDRESS: STREET 1: 1919 S BROADWAY CITY: GREEN BAY STATE: WI ZIP: 54304 BUSINESS PHONE: 4144358821 FORMER COMPANY: FORMER CONFORMED NAME: FORT HOWARD PAPER CO/DE DATE OF NAME CHANGE: 19870506 FORMER COMPANY: FORMER CONFORMED NAME: MARYLAND CUP CORP/WI DATE OF NAME CHANGE: 19840612 FORMER COMPANY: FORMER CONFORMED NAME: FORT HOWARD PAPER CO DATE OF NAME CHANGE: 19830926 10-Q 1 SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) [X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1997 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 number: 0-20473 FORT HOWARD CORPORATION (Exact name of registrant as specified in its charter) Delaware 39-1090992 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 1919 South Broadway, Green Bay, Wisconsin 54304 (Address of principal executive offices) (Zip Code) Registrant's telephone number including area code: 414/435-8821 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 [X] No [ ] Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Class Outstanding at April 10, 1997 ----- ----------------------------- Common Stock, par value $.01 74,639,227 per share PART I. FINANCIAL INFORMATION FORT HOWARD CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended March 31, ----------------------- 1997 1996 ---- ---- (In thousands, except per share data) Net sales................................. $400,759 $385,747 Cost of sales............................. 229,040 238,369 -------- -------- Gross income.............................. 171,719 147,378 Selling, general and administrative....... 33,482 33,175 -------- -------- Operating income.......................... 138,237 114,203 Interest expense.......................... 57,862 70,773 Other expense, net........................ 780 563 -------- -------- Income before taxes....................... 79,595 42,867 Income taxes.............................. 29,848 15,927 -------- -------- Income before extraordinary item.......... 49,747 26,940 Extraordinary item -- loss on debt repurchases (net of income taxes of $867 in 1997)........................ (1,327) -- -------- -------- Net income................................ $ 48,420 $ 26,940 ======== ======== Earnings per share: Net income before extraordinary item.... $ 0.67 $ 0.43 Extraordinary item...................... (0.02) -- -------- -------- Net income.............................. $ 0.65 $ 0.43 ======== ======== Average shares outstanding................ 74,531 63,372 ======== ======== The accompanying notes are an integral part of these condensed consolidated financial statements. - 2 - FORT HOWARD CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, December 31, 1997 1996 ---------- ------------ (In thousands) Assets Current assets: Cash and cash equivalents................. $ 663 $ 759 Receivables, less allowances of $3,484 in 1997 and $3,343 in 1996.............. 70,830 63,194 Inventories............................... 149,301 151,248 Deferred income taxes..................... 54,000 60,000 Income taxes receivable................... 10,121 10,121 ---------- ---------- Total current assets.................... 284,915 285,322 Property, plant and equipment............... 2,062,864 2,057,446 Less: Accumulated depreciation........... 831,337 809,650 ---------- ---------- Net property, plant and equipment....... 1,231,527 1,247,796 Other assets................................ 64,581 82,262 ---------- ---------- Total assets............................ $1,581,023 $1,615,380 ========== ========== Liabilities and Shareholders' Deficit Current liabilities: Accounts payable.......................... $ 118,758 $ 131,205 Interest payable.......................... 21,171 60,443 Income taxes payable...................... 21,282 7,700 Other current liabilities................. 68,800 110,357 Current portion of long-term debt......... 11,425 11,972 ---------- ---------- Total current liabilities............... 241,436 321,677 Long-term debt.............................. 2,441,446 2,451,373 Deferred and other long-term income taxes... 252,474 247,464 Other liabilities........................... 49,141 49,703 Shareholders' deficit: Common Stock.............................. 746 744 Additional paid-in capital................ 1,115,323 1,108,976 Cumulative translation adjustment......... 1,311 4,717 Retained deficit.......................... (2,520,854) (2,569,274) ---------- ---------- Total shareholders' deficit............. (1,403,474) (1,454,837) ---------- ---------- Total liabilities and shareholders' deficit............................... $1,581,023 $1,615,380 ========== ========== The accompanying notes are an integral part of these condensed consolidated financial statements. - 3 - FORT HOWARD CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, ---------------------- 1997 1996 ---- ---- (In thousands) Cash provided from (used for) operations: Net income...................................... $ 48,420 $ 26,940 Depreciation.................................... 25,855 25,112 Non-cash interest expense....................... 3,235 3,294 Deferred income taxes........................... 9,829 6,295 Pre-tax loss on debt repurchases................ 2,194 -- Decrease in restricted cash..................... 14,916 -- (Increase) decrease in receivables.............. (7,636) 14,219 Decrease in inventories......................... 1,947 4,729 Decrease in accounts payable.................... (12,447) (8,699) Decrease in interest payable.................... (39,272) (40,644) Increase in income taxes payable................ 13,582 8,131 All other, net.................................. (39,311) (27,277) -------- -------- Net cash provided from operations............. 21,312 12,100 Cash used for investment activity: Additions to property, plant and equipment...... (14,896) (8,873) Cash provided from (used for) financing activities: Proceeds from long-term borrowings.............. 99,700 22,324 Repayment of long-term borrowings............... (109,505) (26,111) Issuance of Common Stock........................ 3,293 208 -------- -------- Net cash used for financing activities........ (6,512) (3,579) -------- -------- Decrease in cash.................................. (96) (352) Cash at beginning of period....................... 759 946 -------- -------- Cash at end of period........................... $ 663 $ 594 ======== ======== Supplemental Cash Flow Disclosures: Interest paid................................... $ 93,878 $108,082 Income taxes paid - net......................... 2,155 1,182 The accompanying notes are an integral part of these condensed consolidated financial statements. - 4 - FORT HOWARD CORPORATION NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. BASIS OF PRESENTATION The condensed consolidated financial statements reflect all adjustments (consisting only of normally recurring accruals) which are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. Certain reclassifications have been made to conform prior years' data to the current format. These financial statements should be read in conjunction with the Company's annual report on Form 10-K for the year ended December 31, 1996. 2. EARNINGS PER SHARE Earnings per share is computed on the basis of the weighted average number of common shares outstanding during the periods. The weighted average number of common shares outstanding for the three month periods ended March 31, 1997 and 1996 were 74,530,556 and 63,372,063, respectively. The assumed exercise of all outstanding stock options has been excluded from the computation of earnings per share for the three month periods ended March 31, 1997 and 1996 because the result was not material or was antidilutive. In February 1997, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128, "Earnings Per Share" ("SFAS No. 128"). The Company will adopt SFAS No. 128 effective for the year ending December 31, 1997. On a pro forma basis, if the Company had adopted SFAS No. 128 for the three months ended March 31, 1997 and 1996, the effect of this accounting change on reported earnings per share ("EPS") would be: Three Months Ended March 31, ---------------------- 1997 1996 ---- ---- Earnings Per Share: BASIC Income before extraordinary item as reported.. $ 0.67 $ 0.43 Effect of SFAS No. 128........................ -- -- ------ ------ Basic income before extraordinary item as restated.................................... $ 0.67 $ 0.43 ====== ====== Net income as reported........................ $ 0.65 $ 0.43 Effect of SFAS No. 128........................ -- -- ------ ------ Basic income as restated...................... $ 0.65 $ 0.43 ====== ====== DILUTED Diluted income before extraordinary item (A).. $ 0.66 $ 0.42 ====== ====== Diluted income (A)............................ $ 0.64 $ 0.42 ====== ====== (A) In accordance with the provisions of APB Opinion No. 15, the Company currently does not report fully diluted EPS due to immaterial dilution. - 5 - 3. CASH AND CASH EQUIVALENTS At December 31, 1996, the Company had $14,916,000 of cash restricted as collateral under the terms of its 1995 Accounts Receivable Facility. At March 31, 1997, there was no cash restricted under the terms of this Facility. 4. INVENTORIES Inventories consist of: March 31, December 31, 1997 1996 --------- ------------ (In thousands) Raw materials and supplies.............. $ 66,730 $ 70,595 Finished and partly-finished products... 82,571 80,653 -------- -------- $149,301 $151,248 ======== ======== 5. CONTINGENCIES The Company and its subsidiaries are parties to lawsuits and state and federal administrative proceedings incidental to their businesses. Although the final results in such suits and proceedings cannot be predicted with certainty, the Company currently believes that the ultimate resolution of all such lawsuits and proceedings, after taking into account the liabilities accrued with respect to such matters, will not have a material adverse effect on the Company's financial condition or on its results of operations. - 6 - FORT HOWARD CORPORATION MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED FINANCIAL CONDITION AND RESULTS OF OPERATIONS RESULTS OF OPERATIONS First Quarter 1997 Compared to 1996 Three Months Ended March 31, ------------------------ 1997 1996 ---- ---- (In thousands, except percentages) Net sales: Domestic tissue......................... $336,820 $324,908 International operations................ 44,107 43,808 Harmon.................................. 19,832 17,031 -------- -------- Consolidated............................ $400,759 $385,747 ======== ======== Operating income: Domestic tissue......................... $130,520 $106,920 International operations................ 7,115 6,305 Harmon.................................. 602 978 -------- -------- Consolidated............................ $138,237 $114,203 ======== ======== Consolidated net income................... $ 48,420 $ 26,940 ======== ======== Operating income as a percent of net sales 34.5% 29.6% Net Sales. Consolidated net sales increased 3.9% to $401 million in the first quarter of 1997 compared to $386 million in the first quarter of 1996. Domestic tissue net sales increased 3.7% in the first quarter of 1997 compared to the first quarter of 1996 due to a 6.3% increase in sales volume offset by a 2.5% decrease in net selling prices. For the first quarter of 1997, sales volume of converted products increased 8.6% from the first quarter of 1996. There were no sales of parent rolls in the first quarter of 1997. Net selling prices decreased for the first quarter of 1997 compared to the first quarter of 1996 as a result of price decreases in the consumer market which took effect in April and June 1996. Net sales of the Company's international operations increased 0.7% in the first quarter of 1997 compared to the first quarter of 1996 due to higher volume and increased exchange rates, offset by a decrease in net selling prices at the Company's United Kingdom facility. Net sales of the Company's wastepaper brokerage subsidiary, Harmon Assoc., Corp. ("Harmon"), increased due to a 20.0% volume increase offset by decreased net selling prices. - 7 - Gross Income. For the first quarter of 1997, consolidated gross income increased 16.5% to $172 million from $147 million in the first quarter of 1996 due to higher volume and lower raw material costs partially offset by a decrease in net selling prices. Consolidated gross margins increased to 42.8% for the first quarter of 1997 from 38.2% for the first quarter of 1996. Domestic tissue gross margins increased for the first quarter of 1997 compared to the first quarter of 1996 due to higher volume and lower wastepaper and other fiber-based raw material costs. Wastepaper prices began decreasing significantly in late 1995 and continued to decrease through the first half of 1996, and have been stable since mid-1996. Gross margins of international operations increased in the first quarter of 1997 compared to the first quarter of 1996 due to lower wastepaper costs. Selling, General and Administrative Expenses. Selling, general and administrative expenses, as a percent of net sales, decreased slightly to 8.4% for the first quarter of 1997 compared to 8.6% in 1996 principally due to the impact of higher net sales. Operating Income. Operating income increased 21.0% to $138 million in the first quarter of 1997 compared to $114 million in the first quarter of 1996. Operating income as a percent of net sales increased to 34.5% in the first quarter of 1997 compared to 29.6% in the first quarter of 1996. Domestic tissue operating income as a percent of net sales increased to 38.8% in the first quarter of 1997 from 32.9% in the first quarter of 1996 due to higher volume as well as lower wastepaper and other raw material costs. International operating income as a percent of sales rose in the first quarter of 1997 compared to the first quarter of 1996 also due to higher volume and lower wastepaper costs. Interest Expense. Interest expense decreased 18.2% to $58 million in the first quarter of 1997 compared to the first quarter of 1996 due to lower debt balances resulting from debt repayments using the proceeds from the 1996 sale of common stock and cash provided from operations. Extraordinary Loss. The Company's net income in the first quarter of 1997 was decreased by an extraordinary loss of $1.3 million (net of income taxes of $0.9 million) representing the write-off of deferred loan costs associated with the prepayment of a portion of the outstanding indebtedness under the Company's 1995 Bank Credit Agreement. Net Income. For the first quarter of 1997, net income increased 78% to $48 million compared to $27 million for the first quarter of 1996. FINANCIAL CONDITION For the first three months of 1997, cash decreased $96,000. Capital additions of $15 million and debt repayments of $110 million were funded principally by borrowings of $100 million, net proceeds of $3 million from the sale of common stock pursuant to the exercise of stock options and $21 million of cash from operations partially offset by seasonal working capital requirements. During the first three months of 1997, receivables increased $8 million due to higher domestic tissue sales in the first quarter of 1997 compared to the fourth quarter of 1996. Accounts payable decreased $12 million due to payments made to customers under annual promotion and rebate programs and - 8 - lower capital spending during the first quarter of 1996. The liability for interest payable decreased $39 million due to semi-annual interest payments made in February and March 1997. Other current liabilities declined $42 million resulting from the payment of obligations due on an annual basis, including employee bonuses and customer incentive payments. As a result of all these changes, net working capital increased to $43 million at March 31, 1997 from a deficit of $36 million at December 31, 1996. The 1995 Revolving Credit Facility of the Company's 1995 Bank Credit Agreement, which may be used for general corporate purposes, has a final maturity of March 16, 2002. At March 31, 1997, the Company had $173 million in available capacity under the 1995 Revolving Credit Facility. IMPACT OF NEW ACCOUNTING STANDARD In February 1997 the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 128, "Earnings Per Share" ("SFAS No. 128"). The Company will adopt SFAS No. 128 effective for the year ending December 31, 1997. The Company does not expect SFAS No. 128 to have a significant impact on its reported earnings per share. See footnote 2 to the Condensed Consolidated Financial Statements for a pro forma disclosure of the impact of SFAS No. 128 for the three months ended March 31, 1997, and 1996. - 9 - PART II. OTHER INFORMATION 1. LEGAL PROCEEDINGS None 2. CHANGES IN SECURITIES None 3. DEFAULTS UPON SENIOR SECURITIES None 4. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS None 5. OTHER INFORMATION None 6. EXHIBITS AND REPORTS ON FORM 8-K a) Exhibits: Exhibit No. Description 27 Financial Data Schedule for the three months ended March 31, 1997. 99 News release containing financial results for the quarter ended March 31, 1997. b) No reports on Form 8-K were filed by the Company for the quarter for which this report is filed. - 10 - FORT HOWARD CORPORATION SIGNATURES Pursuant to the requirement 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. FORT HOWARD CORPORATION Registrant April 21, 1997 /s/ Kathleen J. Hempel --------------------------------------- Kathleen J. Hempel, Vice Chairman and Chief Financial Officer and Principal Accounting Officer April 21, 1997 /s/ James W. Nellen II -------------------------------------- James W. Nellen II, Vice President and Secretary - 11 - INDEX TO EXHIBITS Exhibit No. Description 27 Financial Data Schedule for the three months ended March 31, 1997. 99 News release containing financial results for the quarter ended March 31, 1997. - 12 - EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM FORT HOWARD CORPORATION'S UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS FOR THE THREE MONTHS ENDED MARCH 31, 1997 AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000038195 FORT HOWARD CORPORATION 1,000 U.S. DOLLARS 3-MOS DEC-31-1997 MAR-31-1997 1 663 0 74,314 3,484 149,301 284,915 2,062,864 831,337 1,581,023 241,436 2,441,446 746 0 0 (1,404,220) 1,581,023 400,759 400,759 229,040 229,040 0 0 57,862 79,595 29,848 49,747 0 (1,327) 0 48,420 0.65 0.65
EX-99 3 Exhibit 99 ----------- NEWS For further information contact: Media: Cliff Bowers, Ext. 4087 (FORT HOWARD LOGO here) P. O. Box 19130 Financial: Green Bay, WI 54307-9130 Mike Lempke, Ext. 2492 414/435-8821 FOR RELEASE: IMMEDIATELY FORT HOWARD EARNINGS PER SHARE INCREASE 56% FOR FIRST QUARTER GREEN BAY, WI - April 21, 1997 - Fort Howard Corporation today reported that net income per share reached $0.67 before an extraordinary item for the first quarter ending March 31, 1997, an increase of 56% compared to $0.43 in the same period of 1996. Net sales, operating income, operating margin and earnings per share all increased in the first quarter of 1997. Quarterly operating income increased year-on-year for the ninth consecutive quarter. "Every aspect of our business is performing superbly," said Fort Howard Chairman, President and CEO, Michael T. Riordan. "Our results confirm our strategies as a successful consumer products business and distinguish us from the broader paper and forest products sector. "As we look through the balance of this year, raw material costs, pricing, operating rates and overall economic growth appear positive. In light of this strong environment, we believe Fort Howard can continue to perform at very high levels," Riordan said. - More - - Ad One - Operating Income Increases Operating income increased 21% to $138,237,000 for the first quarter compared to $114,203,000 for the first quarter of 1996. The increase was due to higher sales volume and lower wastepaper costs in both the company's domestic and international operations. Fort Howard's operating income margin for the quarter was 34.5% compared to 29.6% for the first quarter of 1996 and 31.3% in the fourth quarter of 1996 before the 1996 environmental charge. Net Income For the first quarter of 1997, net income before an extraordinary item was $49,747,000, an increase of 85% compared to first quarter 1996 net income of $26,940,000. The net income after an extraordinary item was $0.65 per share in the first quarter of 1997 compared to $0.43 per share in the first quarter of 1996. Extraordinary losses related to debt prepayments in 1997 (see Note to Financial Information) impacted the company's financial performance in the first quarter of 1997. Net Sales Performance For the first quarter, Fort Howard's net sales increased 3.9% to $400,759,000 compared to first quarter 1996 net sales of $385,747,000. Domestic tissue sales increased 3.7% for the first quarter of 1997 compared to first quarter 1996. Sales volume of converted products increased 8.6% but this was partially offset by lower selling prices resulting from industry-wide price decreases in the at-home tissue market which occurred in mid-1996. Also, net sales of the company's international operations and the company's wastepaper brokerage operations increased for the first quarter of 1997 compared to first quarter 1996. - More - - Ad Two - Fort Howard is a leading manufacturer and marketer of consumer tissue products for both the away-from-home and at-home markets in the United States and United Kingdom. In the domestic at-home market, its principal brands include Mardi Gras printed napkins (which holds the leading domestic market position) and paper towels, Soft 'N Gentle bath and facial tissue, So-Dri paper towels, and Green Forest, the leading domestic line of environmentally positioned recycled tissue paper products. Prominent away-from-home market brands include the Preference Ultra line of premium products, Preference near-premium products, and the Envision line of environmentally positioned products. (Financial information and note follow on separate pages. The note is an integral part of these statements.) # # # # # FORT HOWARD CORPORATION CONSOLIDATED STATEMENTS OF INCOME (Unaudited) Three Months Ended March 31, -------------------- 1997 1996 ---- ---- (In thousands, except per share amounts) Net sales $400,759 $385,747 Cost of sales 229,040 238,369 -------- -------- Gross income 171,719 147,378 Selling, general and administrative 33,482 33,175 -------- -------- Operating income 138,237 114,203 Interest expense 57,862 70,773 Other expense, net 780 563 -------- -------- Income before taxes 79,595 42,867 Income tax expense 29,848 15,927 -------- -------- Income before extraordinary item 49,747 26,940 Extraordinary item - loss on debt repurchases, net (1,327) -- -------- -------- Net income $ 48,420 $ 26,940 ======== ======== Net income per share: Before extraordinary item $ 0.67 $ 0.43 Extraordinary item (0.02) -- -------- -------- Net income $ 0.65 $ 0.43 ======== ======== Average shares outstanding 74,531 63,372 ======== ========
FORT HOWARD CORPORATION CONSOLIDATED BALANCE SHEETS (Unaudited) March 31, December 31, 1997 1996 ------------ ------------ (In thousands) Assets Current assets: Cash and cash equivalents $ 663 $ 759 Receivables, less allowances of $3,484 in 1997 and $3,343 in 1996 70,830 63,194 Inventories 149,301 151,248 Deferred income taxes 54,000 60,000 Income taxes receivable 10,121 10,121 ---------- ---------- Total current assets 284,915 285,322 Property, plant and equipment 2,062,864 2,057,446 Less: Accumulated depreciation 831,337 809,650 ---------- ---------- Net property, plant and equipment 1,231,527 1,247,796 Other assets 64,581 82,262 ---------- ---------- Total assets $1,581,023 $1,615,380 ========== ========== Liabilities and Shareholders' Deficit Current liabilities: Accounts payable $ 118,758 $ 131,205 Interest payable 21,171 60,443 Income taxes payable 21,282 7,700 Other current liabilities 68,800 110,357 Current portion of long-term debt 11,425 11,972 ---------- ---------- Total current liabilities 241,436 321,677 Long-term debt 2,441,446 2,451,373 Deferred and other long-term income taxes 252,474 247,464 Other liabilities 49,141 49,703 Shareholders' deficit: Common Stock 746 744 Additional paid-in capital 1,115,323 1,108,976 Cumulative translation adjustment 1,311 4,717 Retained deficit (2,520,854) (2,569,274) ---------- ---------- Total shareholders' deficit (1,403,474) (1,454,837) ---------- ---------- Total liabilities and shareholders' deficit $1,581,023 $1,615,380 ========== ==========
FORT HOWARD CORPORATION CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) Three Months Ended March 31, -------------------- 1997 1996 ---- ---- (In thousands) Cash provided from (used for) operations: Net income $ 48,420 $ 26,940 Depreciation 25,855 25,112 Non-cash interest expense 3,235 3,294 Deferred income tax expense 9,829 6,295 Pre-tax loss on debt repurchases 2,194 -- Decrease in restricted cash 14,916 -- (Increase) decrease in receivables (7,636) 14,219 Decrease in inventories 1,947 4,729 Decrease in accounts payable (12,447) (8,699) Decrease in interest payable (39,272) (40,644) Increase in income taxes payable 13,582 8,131 All other, net (39,311) (27,277) --------- --------- Net cash provided from operations 21,312 12,100 Cash used for investment activity: Additions to property, plant and equipment (14,896) (8,873) Cash provided from (used for) financing activities: Proceeds from long-term borrowings 99,700 22,324 Repayment of long-term borrowings (109,505) (26,111) Issuance of Common Stock 3,293 208 --------- --------- Net cash used for financing activities (6,512) (3,579) --------- --------- Decrease in cash (96) (352) Cash at beginning of period 759 946 --------- --------- Cash at end of period $ 663 $ 594 ========= =========
***** FORT HOWARD CORPORATION NOTE TO FINANCIAL INFORMATION (Unaudited) 1. The Company's net income in the first quarter of 1997 was decreased by an extraordinary loss of $1.3 million (net of income taxes of $0.9 million) representing the write-off of deferred loan costs associated with the prepayment of a portion of the outstanding indebtedness under the 1995 Bank Credit Agreement. # # # # # -----END PRIVACY-ENHANCED MESSAGE-----