-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, QU5AXUQGSEpdnUz1IuS9SfBrcqiQ6/uiDx+GEar2nw1PY4j951EdxgEgOD2oTBES DCzVUV9hsHbhpzOJyMU0qA== 0000900421-95-000028.txt : 19950516 0000900421-95-000028.hdr.sgml : 19950516 ACCESSION NUMBER: 0000900421-95-000028 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 SROS: AMEX SROS: PHLX SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: MAXXAM INC CENTRAL INDEX KEY: 0000063814 STANDARD INDUSTRIAL CLASSIFICATION: LAND SUBDIVIDERS & DEVELOPERS (NO CEMETERIES) [6552] IRS NUMBER: 952078752 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-03924 FILM NUMBER: 95538751 BUSINESS ADDRESS: STREET 1: 5847 SAN FELIPE STE 2600 CITY: HOUSTON STATE: TX ZIP: 77057 BUSINESS PHONE: 7132673669 MAIL ADDRESS: STREET 1: P O BOX 572887 CITY: HOUSTON STATE: TX ZIP: 77257-2887 FORMER COMPANY: FORMER CONFORMED NAME: MCO HOLDINGS INC DATE OF NAME CHANGE: 19881115 FORMER COMPANY: FORMER CONFORMED NAME: MCCULLOCH OIL CORP DATE OF NAME CHANGE: 19800630 FORMER COMPANY: FORMER CONFORMED NAME: MCCULLOCH OIL CORP OF CALIFORNIA DATE OF NAME CHANGE: 19691118 10-Q 1 MAXXAM INC. 1ST QUARTER 10-Q =========================================================================== FORM 10-Q SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 -------------------- QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1995 Commission File Number 1-3924 MAXXAM INC. (Exact name of Registrant as Specified in its Charter) DELAWARE 95-2078752 (State or other jurisdiction (I.R.S. Employer of incorporation or Identification Number) organization) 5847 SAN FELIPE, SUITE 2600 77057 HOUSTON, TEXAS (Zip Code) (Address of Principal Executive Offices) Registrant's telephone number, including area code: (713) 975-7600 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 / / Number of shares of common stock outstanding at May 1, 1995: 8,707,591 =========================================================================== MAXXAM INC. INDEX
PART I. - FINANCIAL INFORMATION PAGE Item 1. Financial Statements Consolidated Balance Sheet at March 31, 1995 and December 31, 1994 3 Consolidated Statement of Operations for the three months ended March 31, 1995 and 1994 4 Consolidated Statement of Cash Flows for the three months ended March 31, 1995 and 1994 5 Condensed Notes to Consolidated Financial Statements 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 11 PART II. - OTHER INFORMATION Item 1. Legal Proceedings 20 Item 5. Other Information 20 Item 6. Exhibits and Reports on Form 8-K 20 Signatures S-1 /TABLE CONSOLIDATED BALANCE SHEET
March 31, December 31, 1995 1994 ------------- -------------- (Unaudited) (In millions of dollars) ASSETS Current assets: Cash and cash equivalents $ 42.2 $ 84.6 Marketable securities 53.6 40.3 Receivables: Trade, net of allowance for doubtful accounts of $4.7 and $4.4 at March 31, 1995 and December 31, 1994, respectively 218.5 176.8 Other 76.3 62.9 Inventories 572.4 541.4 Prepaid expenses and other current assets 131.6 185.3 ------------- -------------- Total current assets 1,094.6 1,091.3 Property, plant and equipment, net of accumulated depreciation of $604.4 and $579.9 at March 31, 1995 and December 31, 1994, respectively 1,220.6 1,231.6 Timber and timberlands, net of depletion of $126.2 and $123.9 at March 31, 1995 and December 31, 1994, respectively 323.6 325.2 Investments in and advances to unconsolidated affiliates 178.6 169.7 Deferred income taxes 436.3 425.6 Long-term receivables and other assets 483.0 447.4 ------------- -------------- $ 3,736.7 $ 3,690.8 ============= ============== LIABILITIES AND STOCKHOLDERS' DEFICIT Current liabilities: Accounts payable $ 156.0 $ 161.8 Accrued interest 28.5 62.0 Accrued compensation and related benefits 129.7 138.3 Other accrued liabilities 178.5 200.2 Payable to affiliates 83.6 81.8 Long-term debt, current maturities 31.5 33.7 ------------- -------------- Total current liabilities 607.8 677.8 Long-term debt, less current maturities 1,647.9 1,582.5 Accrued postretirement benefits 746.5 743.1 Other noncurrent liabilities 658.5 618.4 ------------- -------------- Total liabilities 3,660.7 3,621.8 ------------- -------------- Commitments and contingencies Minority interests 351.9 344.3 Stockholders' deficit: Preferred stock, $.50 par value; 12,500,000 shares authorized; Class A $.05 Non-Cumulative Participating Convertible Preferred Stock; shares issued: 669,957 .3 .3 Common stock, $.50 par value; 28,000,000 shares authorized; shares issued: 10,063,359 5.0 5.0 Additional capital 53.6 53.2 Accumulated deficit (303.9) (302.9) Pension liability adjustment (11.4) (11.4) Treasury stock, at cost (shares held: preferred - 845; common - 1,355,768) (19.5) (19.5) ------------- -------------- Total stockholders' deficit (275.9) (275.3) ------------- -------------- $ 3,736.7 $ 3,690.8 ============= ==============
The accompanying notes are an integral part of these financial statements. CONSOLIDATED STATEMENT OF OPERATIONS (IN MILLIONS OF DOLLARS, EXCEPT SHARE AMOUNTS)
Three Months Ended March 31, --------------------------- 1995 1994 ------------ ----------- (Unaudited) Net sales: Aluminum operations $ 513.0 $ 415.1 Forest products operations 52.0 56.7 Real estate operations 16.3 17.2 ------------ ----------- 581.3 489.0 ------------ ----------- Costs and expenses: Costs of sales and operations (exclusive of depreciation and depletion): Aluminum operations 426.7 387.8 Forest products operations 29.5 33.2 Real estate operations 12.1 12.4 Selling, general and administrative expenses 42.6 39.4 Depreciation and depletion 29.8 31.2 ------------ ----------- 540.7 504.0 ------------ ----------- Operating income (loss) 40.6 (15.0) Other income (expense): Investment, interest and other income 3.6 11.4 Interest expense (45.4) (43.5) ------------ ----------- Loss before income taxes, minority interests and extraordinary item (1.2) (47.1) Credit for income taxes 7.2 16.5 Minority interests (7.0) (3.9) ------------ ----------- Loss before extraordinary item (1.0) (34.5) Extraordinary item: Loss on early extinguishment of debt, net of related benefit for income taxes of $2.9 - (5.4) ------------ ----------- Net loss $ (1.0) $ (39.9) ============ =========== Per common and common equivalent share: Loss before extraordinary item $ (.11) $ (3.65) Extraordinary item - (.57) ------------ ----------- Net loss $ (.11) $ (4.22) ============ ===========
The accompanying notes are an integral part of these financial statements. CONSOLIDATED STATEMENT OF CASH FLOWS (IN MILLIONS OF DOLLARS)
Three Months Ended March 31, -------------------- 1995 1994 -------- -------- (Unaudited) CASH FLOWS FROM OPERATING ACTIVITIES: Net loss $ (1.0) $ (39.9) Adjustments to reconcile net loss to net cash used for operating activities: Depreciation and depletion 29.8 31.2 Minority interests 7.0 3.9 Amortization of deferred financing costs and discounts on long-term debt 4.7 5.3 Net purchases of marketable securities (17.3) (16.9) Equity in losses (income) of unconsolidated affiliates (1.8) 1.1 Incurrence of financing costs (.9) (17.1) Extraordinary loss on early extinguishment of debt, net - 5.4 Decrease (increase) in prepaid expenses and other assets 43.6 (5.1) Increase in receivables (55.6) (4.1) Decrease in accrued interest (33.5) (25.8) Decrease (increase) in inventories (32.1) 20.7 Decrease in payable to affiliates and other liabilities (11.1) (5.7) Increase in accrued and deferred income taxes (5.9) (18.4) Decrease in accounts payable (5.3) (9.4) Other 5.7 (4.7) -------- -------- Net cash used for operating activities (73.7) (79.5) -------- -------- CASH FLOWS FROM INVESTING ACTIVITIES: Net proceeds from disposition of property and investments 2.8 5.1 Capital expenditures (16.7) (14.8) Other (1.2) (3.5) -------- -------- Net cash used for investing activities (15.1) (13.2) -------- -------- CASH FLOWS FROM FINANCING ACTIVITIES: Net borrowings (payments) under revolving credit agreements 76.3 (190.8) Proceeds from issuance of long-term debt 1.7 225.5 Principal payments on long-term debt (18.2) (14.9) Dividends paid to Kaiser's minority preferred stockholders (10.3) (3.8) Redemption of preference stock (3.1) (7.4) Proceeds from issuance of Kaiser preferred stock - 100.4 -------- -------- Net cash provided by financing activities 46.4 109.0 -------- -------- NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (42.4) 16.3 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 84.6 83.9 -------- -------- CASH AND CASH EQUIVALENTS AT END OF PERIOD $ 42.2 $ 100.2 ======== ======== SUPPLEMENTARY SCHEDULE OF NON-CASH INVESTING AND FINANCING ACTIVITIES: Net margin borrowings (payments) for marketable securities $ (5.6) $ 1.9 SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Interest paid, net of capitalized interest $ 74.1 $ 64.1 Income taxes paid 4.3 2.4
The accompanying notes are an integral part of these financial statements. CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (IN MILLIONS OF DOLLARS, EXCEPT SHARE AMOUNTS) 1. GENERAL The information contained in the following notes to the consolidated financial statements is condensed from that which would appear in the annual consolidated financial statements; accordingly, the consolidated financial statements included herein should be reviewed in conjunction with the consolidated financial statements and related notes thereto contained in the Annual Report on Form 10-K filed by MAXXAM Inc. with the Securities and Exchange Commission for the fiscal year ended December 31, 1994 (the "Form 10-K"). All references to the "Company" include MAXXAM Inc. and its subsidiary companies unless otherwise indicated or the context indicates otherwise. Accounting measurements at interim dates inherently involve greater reliance on estimates than at year end. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the entire year. The consolidated financial statements included herein are unaudited; however, they include all adjustments of a normal recurring nature which, in the opinion of management, are necessary to present fairly the consolidated financial position of the Company at March 31, 1995 and the consolidated results of operations and cash flows for the three months ended March 31, 1995 and 1994. Certain reclassifications of prior period information have been made to conform to the current presentation. 2. CASH AND CASH EQUIVALENTS At March 31, 1995 and December 31, 1994, cash and cash equivalents includes $4.8 and $19.4, respectively, which is restricted for debt service payments on the 7.95% Timber Collateralized Notes due 2015. 3. INVENTORIES Inventories consist of the following:
March 31, December 31, 1995 1994 ----------- ------------- Aluminum Operations: Finished fabricated products $ 55.8 $ 49.4 Primary aluminum and work in process 222.8 203.1 Bauxite and alumina 110.3 102.3 Operating supplies and repair and maintenance parts 114.2 113.2 ----------- ------------- 503.1 468.0 ----------- ------------- Forest Products Operations: Lumber 64.2 61.3 Logs 5.1 12.1 ----------- ------------- 69.3 73.4 ----------- ------------- $ 572.4 $ 541.4 =========== =============
4. LONG-TERM DEBT Long-term debt consists of the following:
March 31, December 31, 1995 1994 ----------- ------------- Corporate: 14% Senior Subordinated Reset Notes due May 20, 2000 $ 25.0 $ 25.0 12-1/2% Subordinated Debentures due December 15, 1999, net of discount 16.3 20.9 Other .2 .2 Aluminum Operations: 1994 Credit Agreement 84.0 6.7 9-7/8% Senior Notes due February 15, 2002, net of discount 223.7 223.6 Alpart CARIFA Loan 60.0 60.0 12-3/4% Senior Subordinated Notes due February 1, 2003 400.0 400.0 Other 65.6 69.2 Forest Products Operations: 7.95% Timber Collateralized Notes due July 20, 2015 355.6 363.8 11-1/4% Senior Secured Notes due August 1, 2003 100.0 100.0 12-1/4% Senior Secured Discount Notes due August 1, 2003, net of discount 85.3 82.8 10-1/2% Senior Notes due March 1, 2003 235.0 235.0 Other .8 .9 Real Estate Operations: Secured notes due December 31, 1999, interest at prime plus 3% 11.2 10.0 Other notes and contracts, secured by receivables, buildings, real estate and equipment 16.7 18.1 ----------- ------------- 1,679.4 1,616.2 Less: current maturities (31.5) (33.7) ----------- ------------- $ 1,647.9 $ 1,582.5 =========== =============
5. CREDIT FOR INCOME TAXES The credit for income taxes for the three months ended March 31, 1995 includes a credit relating to reserves the Company no longer believes are necessary. 6. PER SHARE INFORMATION Per share calculations are based on the weighted average number of common shares outstanding in each period and, if dilutive, weighted average common equivalent shares assumed to be issued from the exercise of common stock options based upon the average price of the Company's common stock during the period. 7. CONTINGENCIES Environmental Contingencies Kaiser Aluminum Corporation ("Kaiser," a majority owned subsidiary of the Company) and its principal operating subsidiary, Kaiser Aluminum & Chemical Corporation ("KACC"), are subject to a wide variety of environmental laws and regulations and to fines or penalties assessed for alleged breaches of the environmental laws and to claims and litigation based on such laws. KACC is currently subject to a number of lawsuits under the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Amendments Reauthorization Act of 1986 ("CERCLA") and, along with certain other entities, has been named as a potentially responsible party for remedial costs at certain third-party sites listed on the National Priorities List under CERCLA. Based on Kaiser's evaluation of these and other environmental matters, Kaiser has established environmental accruals primarily related to potential solid waste disposal and soil and groundwater remediation matters. At March 31, 1995, the balance of such accruals, which is primarily included in other noncurrent liabilities, was $40.8. These environmental accruals represent Kaiser's estimate of costs reasonably expected to be incurred based on presently enacted laws and regulations, currently available facts, existing technology and Kaiser's assessment of the likely remediation action to be taken. Kaiser expects that these remediation actions will be taken over the next several years and estimates that annual expenditures to be charged to these environmental accruals will be approximately $3.0 to $11.0 for the years 1995 through 1999 and an aggregate of approximately $11.0 thereafter. As additional facts are developed and definitive remediation plans and necessary regulatory approvals for implementation of remediation are established or alternative technologies are developed, changes in these and other factors may result in actual costs exceeding the current environmental accruals. Kaiser believes that it is reasonably possible that costs associated with these environmental matters may exceed current accruals by amounts that could range, in the aggregate, up to approximately $20.0. While uncertainties are inherent in the final outcome of these environmental matters, and it is presently impossible to determine the actual costs that ultimately may be incurred, management currently believes that the resolution of such uncertainties should not have a material adverse effect on the Company's consolidated financial position or results of operations. Asbestos Contingencies KACC is a defendant in a number of lawsuits in which the plaintiffs allege that certain of their injuries were caused by, among other things, exposure to asbestos during, and as a result of, their employment or association with KACC or exposure to products containing asbestos produced or sold by KACC. The lawsuits generally relate to products KACC has not manufactured for at least 15 years. At March 31, 1995, the number of such lawsuits pending was approximately 29,200. Based on past experience and reasonably anticipated future activity, KACC has established an accrual for estimated asbestos-related costs for claims filed and estimated to be filed and settled through 2007. KACC's accrual was calculated based on the current and anticipated number of asbestos-related claims, the prior timing and amounts of asbestos- related payments, the current state of case law related to asbestos claims and the advice of counsel. Accordingly, an asbestos-related cost accrual of $135.1, before considerations for insurance recoveries, is included primarily in other noncurrent liabilities at March 31, 1995. KACC estimates that annual future cash payments in connection with such litigation will be approximately $11.0 to $13.0 for each of the years 1995 through 1999, and an aggregate of approximately $74.0 thereafter through 2007. KACC does not presently believe there is a reasonable basis for estimating such costs beyond 2007 and, accordingly, no accrual has been recorded for such costs which may be incurred beyond 2007. KACC believes that it has insurance coverage available to recover a substantial portion of its asbestos-related costs. While claims for recovery from some of KACC's insurance carriers are currently subject to pending litigation and other carriers have raised certain defenses, KACC believes, based on prior insurance-related recoveries in respect of asbestos-related claims, existing insurance policies and the advice of counsel, that substantial recoveries from the insurance carriers are probable. Accordingly, an estimated aggregate insurance recovery of $119.5, determined on the same basis as the asbestos-related cost accrual, is recorded primarily in long-term receivables and other assets at March 31, 1995. While uncertainties are inherent in the final outcome of these asbestos matters and it is presently impossible to determine the actual costs that ultimately may be incurred and the insurance recoveries that will be received, management currently believes that, based on the factors discussed in the preceding paragraphs, the resolution of the asbestos- related uncertainties and the incurrence of asbestos-related costs net of related insurance recoveries should not have a material adverse effect on the Company's consolidated financial position or results of operations. Other Contingencies The Company is involved in various other claims, lawsuits and other proceedings relating to a wide variety of matters. While uncertainties are inherent in the final outcome of such matters and it is presently impossible to determine the actual costs that ultimately may be incurred, management currently believes that the resolution of such uncertainties and the incurrence of such costs should not have a material adverse effect on the Company's consolidated financial position or results of operations. 8. DERIVATIVE FINANCIAL INSTRUMENTS AND RELATED HEDGING PROGRAMS KACC enters into primary metal hedging transactions with off-balance sheet risk in the normal course of business. The prices realized by Kaiser under certain sales contracts for alumina, primary aluminum and fabricated aluminum products as well as the costs incurred by Kaiser on certain items, such as aluminum scrap, rolling ingot, power and bauxite, fluctuate with the market price of primary aluminum, together resulting in a "net exposure" of earnings. The primary metal hedging transactions are designed to mitigate the net exposure of earnings to declines in the market price of primary aluminum, while retaining the ability to participate in favorable environments that may materialize. KACC has developed strategies which include forward sales of primary aluminum at fixed prices and the purchase or sale of options for primary aluminum. In this regard, in respect of its remaining 1995 anticipated net exposure, at March 31, 1995, KACC had net forward sales contracts for 235,800 tons (all references to tons in this report refer to metric tons of 2,204.6 pounds) of primary aluminum at fixed prices, purchased call options in respect of 47,250 tons of primary aluminum, purchased put options to establish a minimum price for 160,250 tons of primary aluminum and entered into option contracts that established a price range for 71,000 tons of primary aluminum. In respect of its 1996 anticipated net exposure, at March 31, 1995, KACC had sold forward 15,000 tons of primary aluminum at fixed prices. KACC also enters into hedging transactions in the normal course of business that are designed to reduce its exposure to fluctuations in foreign exchange rates. At March 31, 1995, KACC had net forward foreign exchange contracts totaling approximately $139.5 for the purchase of 192.0 Australian dollars through March 1997. At March 31, 1995, the net unrealized loss on KACC's position in aluminum forward sales and option contracts (based on a market price of $1,859 per ton of primary aluminum) and forward foreign exchange contracts was $16.3. KACC has established margin accounts with its counterparties related to aluminum forward sales and option contracts. KACC is entitled to receive advances from counterparties related to unrealized gains and, in turn, is required to make margin deposits with counterparties to cover unrealized losses related to these contracts. At March 31, 1995, KACC had $7.5, compared with $50.5 at December 31, 1994, on deposit with various counterparties in respect of such unrealized losses. These amounts are recorded in prepaid expenses and other current assets. MAXXAM INC. ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS The following should be read in conjunction with the response to Part I, Item 1 of this Report and Items 7 and 8 of the Form 10-K. Any capitalized terms used but not defined in this Item have the same meaning given to them in the Form 10-K. RESULTS OF OPERATIONS The Company operates in three industries: aluminum, through its majority owned subsidiary Kaiser, a fully integrated aluminum producer; forest products, through MAXXAM Group Inc. ("MGI") and its wholly owned subsidiaries, principally The Pacific Lumber Company ("Pacific Lumber") and Britt Lumber Co., Inc. ("Britt"); and real estate investment and development, principally through MAXXAM Property Company and various other wholly owned subsidiaries. ALUMINUM OPERATIONS Kaiser's operating results are sensitive to changes in prices of alumina, primary aluminum and fabricated aluminum products, and also depend to a significant degree upon the volume and mix of all products sold and on hedging strategies. Kaiser, through its principal subsidiary KACC, operates in two business segments: bauxite and alumina, and aluminum processing. Aluminum operations account for a substantial portion of the Company's revenues and operating results. The following table presents selected operational and financial information for the three months ended March 31, 1995 and 1994. The information presented in the table is in millions of dollars except shipments and prices.
Three Months Ended March 31, ---------------------------- 1995 1994 ------------ ------------- Shipments: (1) Alumina 446.5 468.2 Aluminum products: Primary aluminum 47.7 64.3 Fabricated aluminum products 94.5 96.8 ------------ ----------- Total aluminum products 142.2 161.1 ============ =========== Average realized sales price: Alumina (per ton) $ 197 $ 155 Primary aluminum (per pound) .81 .55 Net sales: Bauxite and alumina: Alumina $ 87.9 $ 72.5 Other (2) (3) 19.1 20.4 ------------ ----------- Total bauxite and alumina 107.0 92.9 ------------ ----------- Aluminum processing: Primary aluminum 85.0 77.3 Fabricated aluminum products 316.2 241.5 Other (3) 4.8 3.4 ------------ ----------- Total aluminum processing 406.0 322.2 ------------ ----------- Total net sales $ 513.0 $ 415.1 ============ =========== Operating income (loss) $ 34.1 $ (24.1) ============ =========== Income (loss) before income taxes, minority interests and extraordinary item $ 9.8 $ (43.4) ============ =========== Capital expenditures $ 13.7 $ 9.6 ============ =========== - -------------------- (1) Shipments are expressed in thousands of metric tons. A metric ton is equivalent to 2,204.6 pounds. (2) Includes net sales of bauxite. (3) Includes the portion of net sales attributable to minority interests in consolidated subsidiaries.
Net sales Bauxite and alumina. Revenues from net sales to third parties for the bauxite and alumina segment in the three months ended March 31, 1995 were 15% higher than in the three months ended March 31, 1994. Revenues from alumina increased 21% in the three months ended March 31, 1995 from the three months ended March 31, 1994, principally due to increased average realized prices, partially offset by lower shipments. Aluminum processing. Revenues from net sales to third parties for the aluminum processing segment in the three months ended March 31, 1995 were 26% higher than in the three months ended March 31, 1994. Revenues from primary aluminum increased 10% in the three months ended March 31, 1995 from the three months ended March 31, 1994, principally due to higher average realized prices, significantly offset by decreased shipments caused by the strike by the United Steelworkers of America ("USWA") discussed below and by a mid-1994 partial curtailment of production at Kaiser's 90%-owned Valco smelter. Shipments of primary aluminum to third parties were approximately 34% of total aluminum products shipments in the three months ended March 31, 1995, compared to approximately 40% in the three months ended March 31, 1994. Revenues from fabricated aluminum products increased 31% in the three months ended March 31, 1995 from the three months ended March 31, 1994, due to higher average realized prices, partially offset by lower shipments for most of these products. Operating income (loss) Kaiser's corporate general and administrative expenses of $18.1 million and $17.2 million for the three months ended March 31, 1995 and 1994, respectively, were allocated by the Company to the bauxite and alumina and aluminum processing segments based on those segments' ratio of sales to unaffiliated customers. First quarter results were adversely affected by (i) an eight-day strike at five major domestic locations by the USWA, (ii) a six-day strike by the National Workers Union at Kaiser's 65%-owned Alpart alumina refinery in Jamaica, and (iii) a four-day disruption of alumina production at Alpart caused by a boiler failure. The combined impact of these events on the first quarter results was approximately $17.0 million in the aggregate (on a pre-tax basis) principally from lower production volume and other related costs. Bauxite and alumina. This segment's operating loss was $1.8 million in the three months ended March 31, 1995 as compared to $5.6 million in the three months ended March 31, 1994, principally due to higher revenues, partially offset by the effect of the strikes and boiler failure. Aluminum processing. This segment had operating income of $35.9 million in the three months ended March 31, 1995, compared with an operating loss of $18.5 million in the three months ended March 31, 1994, principally due to higher revenues, partially offset by the effect of the strike by the USWA. Income (loss) before income taxes, minority interests and extraordinary item Income before income taxes, minority interests and extraordinary item for the three months ended March 31, 1995, as compared to a loss for the three months ended March 31, 1994, resulted from the improvement in operating income previously described. FOREST PRODUCTS OPERATIONS The Company's forest products operations are conducted by MGI through its principal operating subsidiaries. MGI's business is highly seasonal in that the forest products business has historically experienced lower first and fourth quarter sales due largely to the general decline in construction related activity during the winter months. Accordingly, MGI's results for any one quarter are not necessarily indicative of results to be expected for the full year. The following table presents selected operational and financial information for the three months ended March 31, 1995 and 1994. The information presented in the table is in millions of dollars except shipments and prices.
Three Months Ended March 31, ---------------------------- 1995 1994 ------------ ------------- Shipments: Lumber: (1) Redwood upper grades 10.6 12.9 Redwood common grades 51.1 49.4 Douglas-fir upper grades 1.8 2.5 Douglas-fir common grades and other 16.5 15.4 ------------ ------------- Total lumber 80.0 80.2 ============ ============= Logs (2) .5 5.5 ============ ============= Wood chips (3) 46.9 30.3 ============ ============= Average sales price: Lumber: (4) Redwood upper grades $ 1,544 $ 1,406 Redwood common grades 427 448 Douglas-fir upper grades 1,368 1,405 Douglas-fir common grades 379 460 Logs (4) 227 676 Wood chips (5) 89 71 Net sales: Lumber, net of discount $ 46.9 $ 50.0 Logs .1 3.7 Wood chips 4.2 2.1 Cogeneration power .5 .6 Other .3 .3 ------------ ------------- Total net sales $ 52.0 $ 56.7 ============ ============= Operating income $ 12.6 $ 13.4 ============ ============= Operating cash flow (6) $ 18.4 $ 19.2 ============ ============= Income (loss) before income taxes, minority interests and extraordinary item $ (5.1) $ 2.0 ============ ============= Capital expenditures $ 1.9 $ 4.0 ============ ============= - -------------------- (1) Lumber shipments are expressed in millions of board feet. (2) Log shipments are expressed in millions of feet, net Scribner scale. (3) Wood chip shipments are expressed in thousands of bone dry units of 2,400 pounds. (4) Dollars per thousand board feet. (5) Dollars per bone dry unit. (6) Operating income before depletion and depreciation, also referred to as "EBITDA."
Shipments Lumber shipments to third parties for the three months ended March 31, 1995 were virtually unchanged from the three months ended March 31, 1994. Decreased shipments of upper grade redwood lumber were mostly offset by increased shipments of redwood common lumber. Log shipments for the three months ended March 31, 1995 were .5 million feet (net Scribner scale), a decrease from 5.5 million feet for the three months ended March 31, 1994. Net sales Revenues from net sales for the three months ended March 31, 1995 decreased as compared to the three months ended March 31, 1994. This decrease was principally due to lower shipments of logs and upper grade redwood lumber and decreases in the average realized prices for common grade Douglas-fir and redwood common lumber, partially offset by increased sales of wood chips, an increase in the average realized price for upper grade redwood lumber and increased shipments of redwood common lumber. Operating income Operating income for the three months ended March 31, 1995 decreased as compared to the three months ended March 31, 1994. This decrease was principally due to lower sales of lumber and logs, partially offset by lower costs of lumber sales and increased sales of wood chips. Costs of lumber sales decreased due to lower purchases of logs from third parties and improved sawmill productivity. Income (loss) before income taxes, minority interests and extraordinary item The loss before income taxes, minority interests and extraordinary item for the three months ended March 31, 1995, as compared to income for the three months ended March 31, 1994, resulted from a decrease in investment, interest and other income and the decrease in operating income as discussed above. Investment, interest and other income for the three months ended March 31, 1994 included a franchise tax refund of $7.2 million (the substantial portion of which represented interest) from the State of California. REAL ESTATE OPERATIONS
Three Months Ended March 31, -------------------------- 1995 1994 ----------- ----------- (In millions of dollars) Net sales $ 16.3 $ 17.2 Operating loss (3.3) (1.9) Loss before income taxes, minority interests and extraordinary item (2.7) (1.3)
Net sales Net sales for the three months ended March 31, 1995 decreased from the three months ended March 31, 1994. This decrease was primarily due to lower sales at the Company's Palmas del Mar development in Puerto Rico. Operating loss The operating loss for the three months ended March 31, 1995 increased from the three months ended March 31, 1994. This increase was primarily due to lower sales of real estate. Loss before income taxes, minority interests and extraordinary item The loss before income taxes, minority interests and extraordinary item for the three months ended March 31, 1995 was $2.7 million, an increase from the three months ended March 31, 1994. This increase was primarily due to the increased operating loss. OTHER ITEMS NOT DIRECTLY RELATED TO INDUSTRY SEGMENTS
Three Months Ended March 31, --------------------- 1995 1994 -------- --------- (In millions of dollars) Operating loss $ (2.8) $ (2.4) Loss before income taxes, minority interests and extraordinary item (3.2) (4.4)
Operating loss The operating losses represent corporate general and administrative expenses that are not allocated to the Company's industry segments. The operating loss for the three months ended March 31, 1995 was $2.8 million, an increase from the three months ended March 31, 1994. This increase was primarily due to higher overhead costs. Loss before income taxes, minority interests and extraordinary item The loss before income taxes, minority interests and extraordinary item includes operating losses, investment, interest and other income and interest expense, including amortization of deferred financing costs, that are not allocated to the Company's industry segments. The loss for the three months ended March 31, 1995 was $3.2 million, a decrease from the three months ended March 31, 1994. This decrease was primarily due to higher investment, interest and other income. Minority interests Minority interests represent the minority stockholders' interest in the Company's aluminum operations. FINANCIAL CONDITION AND INVESTING AND FINANCING ACTIVITIES PARENT COMPANY Certain of the Company's subsidiaries, principally Kaiser and MGI, are restricted by their various debt agreements as to the amount of funds that can be paid in the form of dividends or loaned to the Company. KACC's 1994 Credit Agreement and the indentures governing the KACC Senior Notes and the KACC Notes contain covenants which, among other things, limit Kaiser's ability to pay cash dividends and restrict transactions between Kaiser and its affiliates. Under the most restrictive of these covenants, Kaiser is not currently permitted to pay dividends on its common stock. The indenture governing the MGI Notes contains various covenants which, among other things, limit the payment of dividends and restrict transactions between MGI and its affiliates. As of March 31, 1995, under the most restrictive of these covenants, approximately $3.3 million of dividends could be paid by MGI. Under the most restrictive covenants governing debt of the Company's real estate subsidiaries, approximately $21.4 million could be paid as of March 31, 1995. As of March 31, 1995, the Company (excluding its aluminum, forest products and real estate subsidiary companies) had cash and marketable securities of approximately $32.3 million and available borrowings under its demand loan and pledge agreement of $25.0 million. See "--Investment in Sam Houston Race Park" below. The Company believes that its existing cash and marketable securities (excluding its aluminum, forest products and real estate subsidiaries), together with the funds available to it, will be sufficient to fund its working capital requirements for the foreseeable future. ALUMINUM OPERATIONS In March 1995, the 1994 Credit Agreement was amended by the Second Amendment to Credit Agreement (the "Second Amendment"). The Second Amendment provided, among other things, for an increase in the revolving line of credit from $275.0 million to $325.0 million. At March 31, 1995, $173.4 million (of which $57.5 million could have been used for letters of credit) was available to KACC under the 1994 Credit Agreement. Kaiser expects that cash flows from operations and borrowings under available sources of financing will be sufficient to satisfy its working capital and capital expenditures requirements for the foreseeable future. FOREST PRODUCTS OPERATIONS MGI anticipates that cash flows from operations, together with existing cash, marketable securities and available sources of financing, will be sufficient to fund the working capital and capital expenditures requirements of MGI and its respective subsidiaries for the foreseeable future; however, due to its highly leveraged condition, MGI is more sensitive than less leveraged companies to factors affecting its operations, including governmental regulation affecting its timber harvesting practices, increased competition from other lumber producers or alternative building products and general economic conditions. As of March 31, 1995, $20.0 million of borrowings was available under Pacific Lumber's Revolving Credit Agreement, of which $5.0 million was available for letters of credit. No borrowings were outstanding as of March 31, 1995, and letters of credit outstanding amounted to $10.0 million. Pacific Lumber has signed a commitment letter with the bank which will amend the Revolving Credit Agreement to extend its maturity date to May 31, 1998 and provide for an additional $30.0 million of available borrowings. REAL ESTATE OPERATIONS As of March 31, 1995, the Company's real estate subsidiaries had approximately $28.4 million available for use under various credit agreements. A substantial portion of the availability was attributable to the credit availability pursuant to the loan agreement secured by real properties, and certain loans secured by income producing real property. INVESTMENT IN SAM HOUSTON RACE PARK Since July 1993, the Company has, through various subsidiaries, controlled the general partner of, and held an equity interest in, Sam Houston Race Park, Ltd. ("SHRP"), which owns and operates a Class 1 horse racing track in northwest Houston (the "Race Park"). On April 17, 1995 (the "Filing Date"), SHRP and its wholly owned subsidiary SHRP Capital Corp. ("Capital"), together with SHRP Acquisition, Inc. ("SHRP Acquisition"), a wholly owned subsidiary of the Company and SHRP's largest limited partner, filed voluntary petitions in the United States Bankruptcy Court for the District of Delaware (the "Bankruptcy Court"), case number 95-433 (HSB), each seeking to reorganize under the provisions of Chapter 11 of the United States Bankruptcy Code (the "Bankruptcy Code"). SHRP, Capital and SHRP Acquisition also filed a consolidated plan of reorganization (the "Plan") and a proposed disclosure statement relating to the Plan with the Bankruptcy Court on April 21, 1995. SHRP, Capital and SHRP Acquisition are currently being operated as debtors-in-possession under the Bankruptcy Code. Prior to the Filing Date, certain of the holders of $75.0 million aggregate principal amount of SHRP's 11-3/4% Senior Secured Notes (the "SHRP Notes") formed an unofficial committee (the "Committee"), which Committee retained counsel and a financial advisor at the expense of SHRP. The Committee represents in excess of two-thirds of the aggregate principal amount of the SHRP Notes. The members of the Committee have informed SHRP's general partner that they have not been appointed by, and do not purport to act on behalf of, any holders of SHRP Notes other than the members of the Committee. SHRP's general partner has reached an agreement in principle with the Committee regarding a restructuring of the SHRP Notes. The agreement in principle is reflected in the Plan and calls for, among other things, a significant modification of the SHRP Notes (the "New SHRP Notes"), an additional capital infusion and a reorganization of SHRP (the "Reorganized SHRP"). The New SHRP Notes will have an aggregate principal amount of $37.5 million, mature on September 1, 2001, and bear interest at the rate of 11% per annum. The maturity date of the New SHRP Notes may be extended to September 1, 2003 (with an increase in the rate of interest to 13% percent per annum) if the Texas legislature passes off track betting or significant gaming legislation during the 2001 legislative session. Interest on the New SHRP Notes would accrue in-kind and not be payable in cash until a certain level of cash flow from operations has been achieved. Once cash interest payments commence, interest payments could not thereafter be paid in-kind. Certain modifications would be made to the existing covenants under the New SHRP Notes, including additional latitude for SHRP to incur indebtedness and make investments in gaming, entertainment and other ventures. A new investor group (the "New SHRP Investor Group") would provide additional capital which would include a cash infusion of $5.8 million (the amount necessary to fund SHRP's projected cash flow requirements for the next three years). The current SHRP partnership interests would be eliminated, although the current partners in SHRP would be entitled to participate in the New SHRP Investor Group in proportion to their prefiling interests in SHRP. An affiliate of the Company would contribute to SHRP (for fair market value) an adjoining approximately 87 acre tract of land, a portion of which the Race Park utilizes for parking by Race Park patrons. The New SHRP Investor Group would be required to provide an unsecured line of credit for an additional $1.7 million to fund future operating requirements, if necessary. Borrowings on the line of credit would bear interest at 11% per annum and would be subordinate to the New SHRP Notes. The Company would underwrite the capital infusion and line of credit portion of the new investment. In addition, the Company and its affiliates would be required to allow the holders of the New SHRP Notes the opportunity to participate in up to 19.9% of any gaming ventures in the Houston area by the Company and its affiliates. The Reorganized SHRP would issue 33 1/3% of the equity in the Reorganized SHRP to the holders of the New SHRP Notes (the "SHRP Noteholder Equity"). The New SHRP Investor Group would receive 65 2/3% of the equity in the Reorganized SHRP (the "Investor Group Equity"). The remaining 1% of equity in the Reorganized SHRP would be issued to the new managing general partner (which would be an affiliate of the Company). In the event of a capital call by the Reorganized SHRP to fund operating losses, holders of the New SHRP Notes could contribute New SHRP Notes in lieu of cash in order to maintain their equity position in the Reorganized SHRP. So long as the New SHRP Notes are outstanding, the holders of the SHRP Noteholder Equity would be entitled to designate one-third of the directors of the managing general partner of the Reorganized SHRP (the "SHRP Noteholder Directors"), subject to the reasonable approval of the remaining directors. Certain significant events (e.g. mergers, consolidations, the sale of all or the substantial portion of SHRP's assets, reorganizations, incurrence of debt in excess of $5.0 million and voluntary acts of insolvency) would require the approval of a majority of all of the directors, including a majority of the SHRP Noteholder Directors voting as a separate class. The ultimate impact of the Chapter 11 proceedings on the results of operations and financial position for each of SHRP, Capital and SHRP Acquisition cannot be presently determined. The ability of each of SHRP, Capital and SHRP Acquisition to continue in existence as going concerns is dependent upon a successful reorganization under Chapter 11 of the Bankruptcy Code. Management for each of SHRP, Capital and SHRP Acquisition believes that a successful reorganization will be achieved; however, no assurance can be given as to the timing or as to the terms of any such reorganization. TRENDS ALUMINUM OPERATIONS In March 1995, the Bonneville Power Administration (the "BPA") offered to its industrial customers, including KACC, surplus firm power at a discounted rate for the period April 1, 1995, through July 31, 1995, to enable such customers to restart idle industrial loads. In April 1995, KACC and the BPA entered into a contract for an amount of such power, and KACC expects to restart one-half of an idle potline (approximately 9,000 tons of annual capacity) at its Tacoma, Washington, smelter in the near future. In February 1995, the BPA issued an initial rate increase announcement which proposed a 5.4% increase to its direct service industry customers (the "DSIs") to apply during a two-year period beginning October 1, 1995. In April 1995, the DSIs, including KACC, entered into agreements with the BPA pursuant to which (i) the proposed 5.4% rate increase was replaced by an agreed 4% rate increase to be in effect for the one-year period October 1, 1995, through September 30, 1996, which will increase production costs at KACC's Mead and Tacoma smelters by an aggregate of approximately $4.0 million per year, based on the operating rate of those smelters after the restart of one-half of a potline at the Tacoma smelter, discussed above, (ii) the variable rate structure currently in effect was extended through September 30, 1996, (iii) the BPA rate proceedings were deferred, (iv) the DSIs waived their rights to assert certain claims in respect of past interruptible service by the BPA, and (v) the BPA agreed to allow each DSI to supply a portion of its requirement for electric power from sources other than the BPA, up to 50% of its top quartile (interruptible) service beginning October 1, 1995, and up to 100% of its top quartile service beginning October 1, 1996, which will help to assure the supply of power and encourage more competitive power rates. Separately, the BPA has offered to contract with each of the DSIs to provide transmission services for power purchased from sources other than the BPA to replace all or any portion of the power now purchased from the BPA under its existing power contract. The amount of power available from the BPA under such an existing power contract would be permanently reduced by the amount of power purchased from such other sources. KACC has entered into a transmission services contract with the BPA, but has not now elected to replace any portion of the power which it purchases from the BPA with power from another source. These new arrangements may help to assure the supply of power and encourage more competitive power rates. FOREST PRODUCTS OPERATIONS During the first quarter, severe weather conditions in northern California hampered Pacific Lumber's timber harvesting operations and shipments of lumber. Heavy rainfall impeded access to logging roads which prevented normal harvesting operations, and caused extended rail shutdowns and other transportation delays, thereby affecting deliveries and shipments of lumber. Continued rainfall in April and early May created conditions not conducive to conducting harvesting operations as Pacific Lumber had initially planned. Timber harvesting is highly seasonal in that Pacific Lumber conducts the material portion of its logging operations in the months of April through November of each year; accordingly, log inventories are generally at or near their lowest levels by the end of March. Compounding the seasonally low log inventories and weather-related constraints on its log supplies and deliveries, a temporary restraining order ("TRO") was granted which required Pacific Lumber to cease all timber harvesting operations on one of the few all-season harvest sites from which it has been able to supplement its declining log inventories. A preliminary injunction hearing was held on May 5, 1995 at which the court did not issue a preliminary injunction or lift the TRO but took the matter under advisement. Further, delays in the regulatory process have resulted from both objections filed with, and litigation against, the CDF by environmentally active groups regarding the CDF's actions with respect to the CDF's timber harvesting plan ("THP") approval process in general, and certain of Pacific Lumber's THPs in particular. Such delays have impeded Pacific Lumber's ability to conduct normal timber harvesting operations on its timberlands. This combination of seasonal operations, severe weather, judicial action and regulatory delays forced Pacific Lumber to curtail operations at one of its four sawmills, and to temporarily idle another sawmill for the period from April 17 to May 2, 1995. Additional judicial actions adverse to Pacific Lumber, further regulatory delays and/or continued inclement weather in northern California could further exacerbate the problems experienced during the first quarter and affect Pacific Lumber's results of operations in the second quarter. Furthermore, the collective impact of such judicial actions and regulatory delays, together with difficulties caused by bad weather, may again force Pacific Lumber to temporarily idle or curtail operations at certain of its lumber mills from time to time until it can secure an adequate supply of logs to sustain operations. RECENT ACCOUNTING PRONOUNCEMENT In March 1995, the Financial Accounting Standards Board issued Statement of Financial Accounting Standards No. 121, Accounting for the Impairment of Long-Lived Assets and for Long-Lived Assets to Be Disposed Of ("SFAS 121"). SFAS 121 requires that long-lived assets and certain identifiable intangibles to be held and used by an entity be reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If the sum of the estimated future cash flows expected to result from the use and eventual disposition of an asset is less than the carrying amount of the asset, an impairment loss is recognized. Measurement of an impairment loss is based on the fair value of the asset. SFAS 121 requires that long-lived assets and certain identifiable intangibles to be disposed of be reported at the lower of carrying amount or fair value less cost to sell. The Company is required to adopt SFAS 121 no later than January 1, 1996. The Company is currently evaluating certain of its real estate properties with respect to application of SFAS 121; accordingly, the effect of SFAS 121 on the Company's financial statements is not known at this time. MAXXAM INC. PART II. OTHER INFORMATION ITEM 1. LEGAL PROCEEDINGS Reference is made to Item 3 of the Form 10-K for information concerning material legal proceedings with respect to the Company. The following material developments have occurred with respect to such legal proceedings. Any capitalized or italicized terms used but not defined in this Item have the same meaning given to them in the Form 10-K. In connection with the Miller action, on April 10, 1995, the U.S. Ninth Circuit Court of Appeals reversed the dismissal of this case; the appellate court made other findings reversing in part and affirming in part the other decisions made by the U.S. District Court in response to plaintiffs' and defendants' motions for summary judgment. Defendants have sought rehearing of this decision by the U.S. Circuit Court of Appeals. Presently, the U.S. Ninth Circuit Court of Appeal has formal jurisdiction of the case and it is uncertain whether the case will be remanded to the U.S. District Court for trial preparation and trial on the merits while the motion for rehearing or any further appeal is pending. RANCHO MIRAGE LITIGATION In connection with the In Re: MAXXAM Inc./Federated Development Shareholders Litigation, the Court has scheduled a hearing for May 24, 1995, to consider defendants' motions to dismiss certain of plaintiffs' claims. In connection with the similar NL Industries Inc., et al. v. Federated Development Co., et al. action, the parties have agreed to stay this action pending proceedings in the In Re: MAXXAM Inc./Federated Development Shareholders Litigation. ITEM 5. OTHER INFORMATION On March 27, 1995, the United States Department of Justice issued Civil Investigative Demand No. 12503 (the "CID"), as part of an industry- wide investigation, requesting information from KACC regarding (i) any actual or contemplated changes in its method of pricing can stock from January 1, 1994, through March 31, 1995, (ii) the percentage of aluminum scrap and primary aluminum ingot used by KACC to produce can stock and the manner in which KACC's cost of acquiring aluminum scrap is factored into its can stock prices, and (iii) any communications with others regarding any actual or contemplated changes in its method of pricing can stock from January 1, 1994, through March 31, 1995. KACC is gathering documents and preparing interrogatory answers in order to comply with the CID. ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K A. EXHIBITS: 10.1 Form of Kaiser 1995 Employee Incentive Compensation Program (incorporated herein by reference to Exhibit 10.1 to the Quarterly Report on Form 10-Q of Kaiser Aluminum Corporation for the quarter ended March 31, 1995; File No. 1-9447) *11 Computation of Net Loss Per Common and Common Equivalent Share ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K (CONTINUED) *27 Financial Data Schedule -------------------- * Included with this filing. B. REPORTS ON FORM 8-K: None. SIGNATURES 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, who has signed this report on behalf of the Registrant and as the principal accounting officer of the Registrant. MAXXAM INC. Date: May 15, 1995 By: TERRY L. FREEMAN Terry L. Freeman Assistant Controller EX-11 2 EX 11 TO MAXXAM INC. 1ST QTR 10-Q EXHIBIT 11 MAXXAM INC. COMPUTATION OF NET LOSS PER COMMON AND COMMON EQUIVALENT SHARE (IN MILLIONS OF DOLLARS, EXCEPT SHARE AND PER SHARE AMOUNTS)
Three Months Ended March 31, ------------------------------ 1995 1994 ------------- ------------- Weighted average common and common equivalent shares outstanding during each period 9,376,703 9,376,703 Common equivalent shares attributable to stock options and convertible securities 71,175 71,175 ------------- ------------- Total common and common equivalent shares 9,447,878 9,447,878 ============= ============= Loss before extraordinary item $ (1.0) $ (34.5) Extraordinary item - (5.4) ------------- ------------- Net loss $ (1.0) $ (39.9) ============= ============= Per common and common equivalent share: Loss before extraordinary item $ (.11) $ (3.65) Extraordinary item - (.57) ------------- ------------- Net loss $ (.11) $ (4.22) ============= =============
EX-27 3 MAXXAM INC. 1ST QUARTER FDS
5 This schedule contains summary financial information extracted from the Company's consolidated balance sheet and consolidated statement of operations and is qualified in its entirety by reference to such consolidated financial statements together with the related footnotes thereto. 1,000 U.S. DOLLARS 3-MOS DEC-31-1995 JAN-01-1995 MAR-31-1995 1 42,200 53,600 223,200 4,700 572,400 1,094,600 1,825,000 604,400 3,736,700 607,800 1,679,400 5,000 0 300 (281,200) 3,736,700 581,300 581,300 468,300 468,300 72,400 0 45,400 (1,200) (7,200) (1,000) 0 0 0 (1,000) (.11) (.11)
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