0000731939-95-000005.txt : 19950811 0000731939-95-000005.hdr.sgml : 19950811 ACCESSION NUMBER: 0000731939-95-000005 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950701 FILED AS OF DATE: 19950810 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: TEMPLE INLAND INC CENTRAL INDEX KEY: 0000731939 STANDARD INDUSTRIAL CLASSIFICATION: PAPERBOARD MILLS [2631] IRS NUMBER: 751903917 STATE OF INCORPORATION: DE FISCAL YEAR END: 1230 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-08634 FILM NUMBER: 95560305 BUSINESS ADDRESS: STREET 1: 303 S TEMPLE DR STREET 2: PO DRAWER N CITY: DIBOLL STATE: TX ZIP: 75941 BUSINESS PHONE: 4098292211 MAIL ADDRESS: STREET 1: 303 SOUTH TEMPLE DIRVE CITY: DIBOLL STATE: TX ZIP: 75941 10-Q 1 FORM 10-Q FOR SECOND QUARTER 1995 SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 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 July 1, 1995 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 1-8634 Temple-Inland Inc. (Exact name of registrant as specified in its charter) Delaware 75-1903917 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification Number) 303 South Temple Drive, Diboll, Texas 75941 (Address of principal executive offices) (Zip Code) (409) 829-2211 (Registrant's telephone number, including area code) Not Applicable (Former name, former address and former fiscal year, if changed since last report.) Indicate 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 the 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: Number of common shares outstanding Class as of July 1, 1995 Common Stock (par value $1.00 per share) 56,114,437 The Exhibit Index appears on page 19 of this report. 2 PART I. FINANCIAL INFORMATION FINANCIAL STATEMENTS Summarized Statements of Income Parent Company (Temple-Inland Inc.) Unaudited Second Quarter First Six Months 1995 1994 1995 1994 (in millions) Revenues Net sales $ 697.5 $ 573.5 $ 1,358.3 $ 1,115.3 Financial services earnings 24.0 14.4 38.2 31.4 721.5 587.9 1,396.5 1,146.7 Costs and Expenses Cost of sales 530.2 483.7 1,040.3 945.7 Selling and administrative 62.6 49.9 122.2 97.3 592.8 533.6 1,162.5 1,043.0 Operating Income 128.7 54.3 234.0 103.7 Interest - net (17.2) (16.3) (33.6) (32.2) Other .6 1.1 1.4 1.3 Income Before Taxes 112.1 39.1 201.8 72.8 Taxes on income 39.2 12.5 70.6 23.3 Net Income $ 72.9 $ 26.6 $ 131.2 $ 49.5 See notes to consolidated financial statements. 3 Summarized Balance Sheets Parent Company (Temple-Inland Inc.) Unaudited July 1, December 31, 1995 1994 (in millions) ASSETS Current Assets Cash $ 12.3 $ 13.0 Receivables, less allowances of $8.8 million in 1995 and $8.4 million in 1994 339.1 244.0 Inventories: Work in process and finished goods 100.4 84.4 Raw materials 223.6 183.8 324.0 268.2 Prepaid expenses 12.3 15.4 Total current assets 687.7 540.6 Investment in Financial Services 617.3 554.8 Property and Equipment Buildings 393.2 392.0 Machinery and equipment 2,874.6 2,843.8 Less allowances for depreciation and amortization (1,666.6) (1,593.2) 1,601.2 1,642.6 Construction in progress 629.9 516.1 2,231.1 2,158.7 Timber and timberlands--less depletion 441.3 431.2 Land 29.5 31.1 Total property and equipment 2,701.9 2,621.0 Other Assets 160.6 147.2 Total Assets $ 4,167.5 $ 3,863.6 See notes to consolidated financial statements. 4 Summarized Balance Sheets - Continued Parent Company (Temple-Inland Inc.) Unaudited July 1, December 31, 1995 1994 (in millions) LIABILITIES AND SHAREHOLDERS' EQUITY Current Liabilities Accounts payable and accrued expenses $ 286.3 $ 316.3 Employee compensation and benefits 26.4 25.0 Short-term borrowings 41.2 38.4 Current portion of long-term debt 110.0 14.1 Total current liabilities 463.9 393.8 Long-Term Debt 1,419.3 1,315.8 Deferred Income Taxes 250.3 229.2 Postretirement Benefits 128.9 125.5 Other Liabilities 17.0 16.6 Shareholders' Equity 1,888.1 1,782.7 Total Liabilities and Shareholders' Equity $ 4,167.5 $ 3,863.6 See notes to consolidated financial statements. 5 Summarized Statements of Cash Flows Parent Company (Temple-Inland Inc.) Unaudited First Six Months 1995 1994 (in millions) Cash Provided by (Used for) Operations Net income $ 131.2 $ 49.5 Adjustments to reconcile net income to net cash: Depreciation and depletion 103.5 98.4 Deferred taxes 21.1 6.6 Unremitted earnings of affiliates (24.6) (22.0) Receivables (94.4) (46.2) Inventories (55.8) (1.8) Prepaid expenses 2.9 (9.9) Accounts payable and accrued expenses (27.9) (22.7) Other (8.3) (11.7) 47.7 40.2 Cash Provided by (Used for) Investments Capital expenditures (187.6) (226.0) Sale of property and equipment, net 6.3 3.2 Acquisitions, net (1.6) (64.1) Capital contribution to financial services (35.0) - (217.9) (286.9) Cash Provided by (Used for) Financing Change in debt 199.1 269.6 Issuance of common stock for stock plans 1.1 7.9 Purchase of stock for treasury (.2) (.3) Cash dividends paid to shareholders (30.3) (27.8) 169.7 249.4 Effect of exchange rate changes on cash (.2) - Net increase (decrease) in cash and cash equivalents (.7) 2.7 Cash and cash equivalents at beginning of period 13.0 8.6 Cash and cash equivalents at end of period $ 12.3 $ 11.3 See notes to consolidated financial statements. 6 Summarized Statements of Income Temple-Inland Financial Services Unaudited Second Quarter First Six Months 1995 1994 1995 1994 (in millions) Interest income Mortgage-backed and investment securities $ 52.5 $ 47.3 $ 103.1 $ 96.0 Loans receivable and mortgage loans held for sale 90.7 55.3 171.5 110.7 Assisted assets 6.1 7.4 12.2 16.0 Other earning assets 6.1 6.0 11.6 20.8 Total interest income 155.4 116.0 298.4 243.5 Interest expense Deposits 78.7 60.1 152.6 119.4 Borrowed funds 31.2 17.7 60.3 43.3 Total interest expense 109.9 77.8 212.9 162.7 Net interest income 45.5 38.2 85.5 80.8 Provision for loan losses 3.7 .5 9.0 1.4 Net interest income after provision for loan losses 41.8 37.7 76.5 79.4 Noninterest income Loan servicing fees 10.6 7.6 20.4 15.4 Loan origination and marketing 1.6 5.0 2.8 12.9 Other 23.9 23.0 43.8 44.3 36.1 35.6 67.0 72.6 Noninterest expense Compensation and benefits 23.3 28.2 45.4 58.7 Other 30.6 30.7 59.9 61.9 Total noninterest expense 53.9 58.9 105.3 120.6 Income before taxes 24.0 14.4 38.2 31.4 Taxes on income 7.9 4.6 13.6 9.4 Net income $ 16.1 $ 9.8 $ 24.6 $ 22.0 See notes to consolidated financial statements. 7 Summarized Balance Sheets Temple-Inland Financial Services Unaudited July 1, December 31, 1995 1994 (in millions) ASSETS Cash and cash equivalents $ 331.0 $ 301.8 Mortgage loans held for sale 134.8 130.4 Loans receivable 4,551.6 3,674.8 Mortgage-backed and investment securities 3,616.7 3,964.2 Covered assets 356.3 418.1 Other assets 543.1 518.4 TOTAL ASSETS $ 9,533.5 $ 9,007.7 LIABILITIES Deposits $ 6,558.0 $ 6,598.3 Securities sold under repurchase agreements 1,737.8 1,365.2 Advances from Federal Home Loan Bank 154.7 154.5 Other borrowings 98.4 81.7 Other liabilities 377.9 265.1 TOTAL LIABILITIES 8,926.8 8,464.8 SHAREHOLDER'S EQUITY 606.7 542.9 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 9,533.5 $ 9,007.7 See notes to consolidated financial statements. 8 Summarized Statements of Cash Flows Temple-Inland Financial Services Unaudited First Six Months 1995 1994 (in millions) Cash Provided by (Used for) Operations Net income $ 24.6 $ 22.0 Adjustments to reconcile net income to net cash: Amortization, accretion and depreciation 11.9 8.8 Provision for loan losses 9.0 1.4 Receivable from FDIC 9.3 39.1 Mortgage loans held for sale (4.4) 384.3 Gain on sales of mortgage-backed and Investment securities available-for-sale (2.1) (.4) Other 11.6 (120.2) 59.9 335.0 Cash Provided by (Used for) Investments Purchases of mortgage-backed and investment securities held-to-maturity - (235.3) Purchases of mortgage-backed and investment securities available-for-sale (53.7) - Maturities of mortgage-backed and investment securities held-to-maturity 198.1 468.3 Maturities of mortgage-backed and investment securities available-for-sale 11.0 - Proceeds from sales of loans and mortgage- backed and investment securities available- for-sale 192.6 .5 Loans originated net of principal collected (889.0) (58.7) Reduction in covered assets 88.3 141.3 Savings bank acquisition - 200.2 Other (37.4) 9.2 (490.1) 525.5 Cash Provided by (Used for) Financing Net increase (decrease) in deposits (37.6) (47.1) Net increase (decrease) in securities sold under repurchase agreements and short-term borrowings 372.7 (346.4) Change in debt 16.6 (15.5) Capital contribution from parent 35.0 - Other 72.7 70.0 459.4 (339.0) Net increase in cash and cash equivalents 29.2 521.5 Cash and cash equivalents at beginning of period 301.8 156.3 Cash and cash equivalents at end of period $ 331.0 $ 677.8 See notes to consolidated financial statements. 9 Consolidated Statements of Income Temple-Inland Inc. and Subsidiaries Unaudited Second Quarter First Six Months 1995 1994 1995 1994 (In millions, except for per share data) Revenues Manufacturing net sales $ 697.5 $ 573.5 $ 1,358.3 $ 1,115.3 Financial Services revenues 191.5 151.6 365.4 316.1 889.0 725.1 1,723.7 1,431.4 Costs and Expenses Manufacturing costs and expenses 592.8 533.6 1,162.5 1,043.0 Financial Services expenses 167.5 137.2 327.2 284.7 760.3 670.8 1,489.7 1,327.7 Operating Income 128.7 54.3 234.0 103.7 Parent Company Interest - net (17.2) (16.3) (33.6) (32.2) Other .6 1.1 1.4 1.3 Income Before Taxes 112.1 39.1 201.8 72.8 Taxes on Income 39.2 12.5 70.6 23.3 Net Income $ 72.9 $ 26.6 $ 131.2 $ 49.5 Earnings per share $1.30 $ .48 $2.34 $ .89 Dividends Paid Per Share of Common Stock $ .27 $ .25 $ .54 $ .50 Weighted Average Shares Outstanding 56.1 55.8 56.1 55.8 See notes to consolidated financial statements. 10 Consolidated Balance Sheets Temple-Inland Inc. and Subsidiaries July 1, 1995 Unaudited Parent Financial Company Services Consolidated (in millions) ASSETS Cash and cash equivalents $ 12.3 $ 331.0 $ 343.3 Mortgage loans held for sale - 134.8 134.8 Loans receivable - 4,551.6 4,551.6 Investments - 3,616.7 3,616.7 Covered assets - 356.3 356.3 Trade and other receivables 339.1 - 339.1 Inventories 324.0 - 324.0 Property & equipment 2,701.9 64.3 2,766.2 Other assets 172.9 478.8 597.1 Investment in affiliates 617.3 - - TOTAL ASSETS $ 4,167.5 $ 9,533.5 $13,029.1 LIABILITIES Deposits $ - $ 6,558.0 $ 6,558.0 Securities sold under repurchase agreements and Federal Home Loan Bank advances - 1,892.5 1,892.5 Other liabilities 480.9 377.9 848.3 Long-term debt 1,419.3 98.4 1,517.7 Deferred income taxes 250.3 - 195.6 Postretirement benefits 128.9 - 128.9 TOTAL LIABILITIES $ 2,279.4 $ 8,926.8 11,141.0 SHAREHOLDERS' EQUITY Preferred stock - par value $1 per share: authorized 25,000,000 shares; none issued - Common stock - par value $1 per share: authorized 200,000,000 shares; issued 61,389,552 shares including shares held in the treasury 61.4 Additional paid-in capital 304.4 Translation and other adjustments (8.1) Retained earnings 1,657.6 2,015.3 Cost of shares held in the treasury: 5,275,115 shares (127.2) TOTAL SHAREHOLDERS' EQUITY 1,888.1 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $13,029.1 See the notes to the consolidated financial statements. 11 Consolidated Balance Sheets Temple-Inland Inc. and Subsidiaries December 31, 1994 Unaudited Parent Financial Company Services Consolidated (in millions) ASSETS Cash and cash equivalents $ 13.0 $ 301.8 $ 314.8 Mortgage loans held for sale - 130.4 130.4 Loans receivable - 3,674.8 3,674.8 Investments - 3,964.2 3,964.2 Covered assets - 418.1 418.1 Trade and other receivables 244.0 - 244.0 Inventories 268.2 - 268.2 Property & equipment 2,621.0 49.7 2,670.7 Other assets 162.6 468.7 565.5 Investment in affiliates 554.8 - - TOTAL ASSETS $ 3,863.6 $ 9,007.7 $12,250.7 LIABILITIES Deposits $ - $ 6,598.3 $ 6,598.3 Securities sold under repurchase agreements and Federal Home Loan Bank advances - 1,519.7 1,519.7 Other liabilities 410.4 265.1 663.5 Long-term debt 1,315.8 81.7 1,397.5 Deferred income taxes 229.2 - 163.5 Postretirement benefits 125.5 - 125.5 TOTAL LIABILITIES $ 2,080.9 $ 8,464.8 10,468.0 SHAREHOLDERS' EQUITY Preferred stock - par value $1 per share: authorized 25,000,000 shares; none issued - Common stock - par value $1 per share: authorized 200,000,000 shares; issued 61,389,552 shares including shares held in the treasury 61.4 Additional paid-in capital 304.3 Translation and other adjustments (10.6) Retained earnings 1,556.6 1,911.7 Cost of shares held in the treasury: 5,370,976 shares (129.0) TOTAL SHAREHOLDERS' EQUITY 1,782.7 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $12,250.7 See the notes to the consolidated financial statements. 12 Consolidated Statements of Cash Flows Temple-Inland Inc. and Subsidiaries Unaudited First Six Months 1995 1994 (in millions) Cash Provided by (Used for) Operations Net income $ 131.2 $ 49.5 Adjustments to reconcile net income to net cash: Depreciation and depletion 107.4 102.3 Amortization and accretion 8.0 4.9 Deferred taxes 32.1 15.9 Receivable from FDIC 9.3 39.1 Trade and other receivables (94.4) (46.2) Inventories (55.8) (1.8) Mortgage loans held for sale (4.4) 384.3 Other (25.8) (172.8) 107.6 375.2 Cash Provided by (Used for) Investments Capital expenditures (205.4) (233.5) Proceeds from sale of property and equipment 7.3 3.4 Purchase of mortgage-backed and investment securities held-to-maturity - (235.3) Purchases of mortgage-backed and investment securities available-for-sale (53.7) - Maturities of mortgage-backed and investment securities held-to-maturity 198.1 468.3 Maturities of mortgage-backed and investment securities available-for-sale 11.0 - Proceeds from sales of mortgage-backed and investment securities available-for-sale 192.6 .5 Loans originated net of principal collected (889.0) (58.7) Reduction in covered assets 88.3 141.3 Savings bank acquisition - 200.2 Manufacturing acquisitions, net (1.6) (64.1) Other (20.6) 16.5 (673.0) 238.6 Cash Provided by (Used for) Financing Additions to debt 252.6 272.3 Payments of debt (36.9) (18.2) Net increase (decrease) in short-term borrowings and repurchase agreements 372.7 (346.4) Cash dividends paid to shareholders (30.3) (27.8) Net increase (decrease) in deposits (37.6) (47.1) Other 73.6 77.6 594.1 (89.6) Effect of exchange rate changes on cash and cash equivalents (.2) - Net increase (decrease) in cash and cash equivalents 28.5 524.2 Cash and cash equivalents at beginning of period 314.8 164.9 Cash and cash equivalents at end of period $ 343.3 $ 689.1 See notes to consolidated financial statements. 13 TEMPLE-INLAND INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS NOTE A - BASIS OF PRESENTATION The accompanying unaudited interim consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, because certain assets and liabilities are in separate corporate entities, the consolidated assets are not available to satisfy all consolidated liabilities. In the opinion of management, all adjustments (consisting only of normal accruals) considered necessary for a fair presentation have been included. For further information, refer to the consolidated financial statements and footnotes included in, or incorporated into, Temple-Inland Inc.'s (the "Company") Annual Report on Form 10-K for the fiscal year ended December 31, 1994. The consolidated financial statements include the accounts of Temple-Inland Inc. and all subsidiaries in which the Company has more than a 50 percent equity ownership. All material intercompany amounts and transactions have been eliminated. Certain amounts have been reclassified to conform with current year s classification. Included as an integral part of the consolidated financial statements are separate summarized financial statements for the Company's primary business groups. The Parent Company (Temple-Inland Inc.) summarized financial statements include the accounts of Temple-Inland Inc. and its manufacturing subsidiaries with the Financial Services subsidiaries and the 20 percent to 50 percent owned companies being reflected in the financial statements on the equity basis. The Temple-Inland Financial Services Group summarized financial statements include savings bank, mortgage banking and real estate development activities and insurance operations. NOTE B - CONTINGENCIES There are pending against the Company and its subsidiaries lawsuits and claims arising in the regular course of business. In the opinion of management, recoveries, if any, by plaintiffs or claimants that may result from the foregoing litigation and claims will not be material in relation to the consolidated financial position of the Company and its subsidiaries. 14 MANAGEMENT'S DISCUSSION AND ANALYSIS Results of Operations Results of operations, including information regarding the Company's principal business segments, are shown below: Second Quarter First Six Months 1995 1994 1995 1994 (in millions) Revenues Corrugated container $ 476.4 $ 353.8 $ 909.8 $ 680.7 Bleached paperboard 92.3 76.0 187.0 145.7 Building products 128.8 137.6 261.5 277.2 Other activities - 6.1 - 11.7 Manufacturing net sales 697.5 573.5 1,358.3 1,115.3 Financial services 191.5 151.6 365.4 316.1 Total revenues $ 889.0 $ 725.1 $ 1,723.7 $ 1,431.4 Income Corrugated container $ 87.1 $ 17.2 $ 151.9 $ 26.3 Bleached paperboard 8.1 (8.2) 15.6 (18.4) Building products 15.3 33.4 39.0 69.6 Other activities - .8 - 1.2 Manufacturing profit 110.5 43.2 206.5 78.7 Financial services 24.0 14.4 38.2 31.4 134.5 57.6 244.7 110.1 Corporate expenses (5.8) (3.3) (10.7) (6.4) Parent company interest - net (17.2) (16.3) (33.6) (32.2) Other - net .6 1.1 1.4 1.3 Income before taxes 112.1 39.1 201.8 72.8 Taxes on income (39.2) (12.5) (70.6) (23.3) Net income $ 72.9 $ 26.6 $ 131.2 $ 49.5 15 Second Quarter 1995 vs. Second Quarter 1994 Second quarter earnings for 1995 totaled $72.9 million, or $1.30 per share, a 174 percent increase over 1994 second quarter earnings of $26.6 million, or $.48 per share. Revenues for the period were $889 million, an increase of 23 percent over the second quarter of last year. The corrugated container group earned $87.1 million in the quarter, up $69.9 million from the second quarter of 1994. Although the weakening of the U.S. economy curbed the momentum in corrugated box volume growth, the corrugated container group reported record earnings in the quarter. Selling prices for containerboard and corrugated boxes continued to improve in the second quarter, and the mills achieved record volumes of production. The increase in earnings for the corrugated container group resulted despite unprecedented increases in the cost of old corrugated containers (OCC), the principal raw material used in the Company s recycle operations. Prices for OCC reached new record levels early in the second quarter, before declining in June. As a result, this group incurred $30 million in net additional costs over the 1994 second quarter and $10 million over first quarter levels. The bleached paperboard group earned $8.1 million in the second quarter compared with an $8.2 million loss in the second quarter of 1994. Demand for most bleached paperboard products remained strong, and selling prices continued to improve in the second quarter. The building products group earned $15.3 million in the quarter, down from the $33.4 million earned in the second quarter last year. Lower demand and record high fiber costs contributed to the decline in earnings. Solid wood products were particularly affected by declining prices and high timber costs. Temple-Inland Financial Services earned $24.0 million in the quarter, up $9.6 million from the second quarter last year. This increase in earnings reflects the group s continuing emphasis on its long-term strategy of improving the efficiencies within the banking operation, as well as the positive impact of the current interest rate environment. 16 First Half of 1995 vs. First Half of 1994 Earnings for the first six months of 1995 were $131.2 million, or $2.34 per share compared with $49.5 million, or $.89 per share for the first half of last year. Revenues of $1,723.7 billion were up from the 1994 first half of $1,431.4 billion. The corrugated container group's earnings of $151.9 million were up 478 percent from last year. Demand for the group s product declined slightly compared with the same period in 1994. The increase in average selling prices for containerboard and corrugated boxes contributed to the increase in earnings with the cost of OCC still at higher prices than in the prior year. The bleached paperboard group earned $15.6 million compared with a loss of $18.4 million in the first half of 1994. Demand for paperboard products strengthened allowing the group to achieve pricing improvements. The building products group earned $39.0 million in the first half of 1995 compared with $69.6 million last year. Weakened demand and record high fiber cost contributed to the decline in earnings. Earnings for the financial services group were $38.2 million for the period compared with $31.4 million for last year's comparable period. This increase was due to the group s long-term strategy of improving the efficiencies within the banking operations and favorable impact of the current interest rate environment. The mortgage banking unit also increased earnings during this period compared with last year, due in part to the adoption of FASB No. 122 requiring capitalization of certain costs incurred in acquiring loan servicing that historically had been expensed. Financial Condition The Company's financial condition continues to be sound. Internally generated funds, existing credit facilities and the capacity to issue long- term debt are sufficient to fund projected capital expenditures, to service existing debt, to pay dividends and to meet normal working capital requirements. During the first half of 1995, the Company's debt increased $199.1 million mainly through issuance of commercial paper and bank debt. This was used to fund planned capital expenditures in the business units and contribute additional capital to financial services. On August 4, 1995, the Board of Directors of the Company announced a repurchase program pursuant to which the Company is authorized to repurchase up to 2.5 million shares of its common stock. The repurchase will be accomplished from time to time through open market or privately negotiated transactions. Our savings bank continues to meet all three regulatory requirement formulae set out under the Financial Institution Reform, Recovery and Enforcement Act of 1989 ("FIRREA"). 17 PART II. OTHER INFORMATION Item 1. Legal Proceedings. The information set forth in Note B to Notes to Consolidated Financial Statements in Part I of this report is incorporated by reference thereto. Item 2. Changes in Securities. Not Applicable. Item 3. Defaults Upon Senior Securities. Not Applicable. Item 4. Submission of Matters to a Vote of Security Holders. Not Applicable Item 5. Other Information. Not Applicable. Item 6. Exhibits and Reports on Form 8-K. (a) Exhibits. Regulation S-K Exhibit Number (11) Statement re computation of per share earnings (b) Reports on Form 8-K. During the six months ended July 1, 1995, the Company did not file any reports on Form 8-K. (27) Financial Data Schedule 18 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. TEMPLE-INLAND INC. (Registrant) Date: August 9, 1995 By /s/ David H. Dolben David H. Dolben Vice President and Chief Accounting Officer 19 EXHIBIT INDEX The following is an index of the exhibits filed herewith. The page reference set forth opposite the description of exhibits included in such index refer to the pages under the sequential numbering system prescribed by Rule 0-3(b) under the Securities Exchange Act of 1934. Regulation S-K Sequential Number Exhibit Name Page Number (11) Statement re computation of 20 per share earnings. (27) Financial Data Schedule 21 20 EXHIBIT (11) TEMPLE-INLAND INC. AND SUBSIDIARIES STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS (in thousands, except for per share data) Second Quarter First Six Months 1995 1994 1995 1994 Primary Average common shares outstanding 56,098 55,692 56,081 55,639 Net effect of dilutive stock options based on treasury stock method using average market price 12 145 43 175 Weighted average shares outstanding 56,110 55,837 56,124 55,814 Net income $ 72,936 $ 26,618 $131,226 $ 49,532 Earnings per share $ 1.30 $ .48 $ 2.34 $ .89 Fully Diluted Average common shares outstanding 56,098 55,692 56,081 55,639 Net effect of dilutive stock options based on treasury stock method using the closing market price, if higher than average market price 72 145 73 175 Weighted average shares outstanding 56,170 55,837 56,154 55,814 Net income $ 72,936 $ 26,618 $131,226 $ 49,532 Earnings per share $ 1.30 $ .48 $ 2.34 $ .89 EX-27 2
5 THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONSOLIDATED BALANCE SHEETS AND CONSOLIDATED INCOME STATEMENTS FOR TEMPLE-INLAND INC. AND SUBSIDIARIES AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 1,000,000 6-MOS DEC-30-1995 JUL-01-1995 343 0 339 0 324 0 2766 0 13029 0 1518 61 0 0 1827 13029 1358 1724 1163 1490 0 0 34 202 71 131 0 0 0 131 2.34 2.34