-----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, WfDAPe4zbT+x+gMm0LvAPGN2pijf2KBxc8yzXsQDZI4S/JzSaSzhQDMa3zGFrwLx Lgl1K7Kw3dCq6rZMSAawVw== 0000745308-95-000003.txt : 19950516 0000745308-95-000003.hdr.sgml : 19950516 ACCESSION NUMBER: 0000745308-95-000003 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19950331 FILED AS OF DATE: 19950515 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: ST JOE PAPER CO CENTRAL INDEX KEY: 0000745308 STANDARD INDUSTRIAL CLASSIFICATION: PAPERBOARD MILLS [2631] IRS NUMBER: 590432511 STATE OF INCORPORATION: FL FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-10466 FILM NUMBER: 95538605 BUSINESS ADDRESS: STREET 1: 1650 PRUDENTIAL DR STE 400 CITY: JACKSONVILLE STATE: FL ZIP: 32207 BUSINESS PHONE: 9043966600 MAIL ADDRESS: STREET 2: P O BOX 1380 CITY: JACKSONVILLE STATE: FL ZIP: 32201 10-Q 1 UNITED STATES 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 March 31, 1995 [ ] 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 0-12001 St. Joe Paper Company (Exact name of registrant as specified in its charter) Florida 59-0432511 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identification No.) Suite 400, 1650 Prudential Drive, Jacksonville, Florida 32207 (Address of principal executive offices) (Zip Code) (904) 396-6600 (Registrant's telephone number, including area code) None (Former name, former address and former fiscal year, if changed since last report) 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 APPLICABLE ONLY TO CORPORATE ISSUERS: As of March 31, 1995 there were 30,498,650 shares of common stock, no par value, outstanding. ST. JOE PAPER COMPANY INDEX Page No. PART I Financial Information: Consolidated Balance Sheet - March 31, 1995 and December 31, 1994 2 Consolidated Statement of Income and Retained Earnings - Three months ended March 31, 1995 and 1994 3 Consolidated Statement of Cash Flows - Three months ended March 31, 1995 and 1994 4 Notes to Consolidated Financial Statements 5 Management's Discussion and Analysis of Consolidated Financial Condition and Results of Operations 7 PART II Other Information 10 ST. JOE PAPER COMPANY CONSOLIDATED BALANCE SHEET (Dollars in thousands) March 31 December 31 ASSETS 1995 1994 (Unaudited) Current Assets: Cash and cash equivalents $ 51,052 $ 71,890 Short-term investments 75,204 61,156 Accounts receivable 90,631 88,606 Inventories 75,788 57,673 Other assets 16,434 21,677 Total Current Assets 309,109 301,002 Investment and Other Assets: Marketable securities 205,200 174,027 Other assets 49,714 50,426 Total Investments and Other Assets 254,914 224,453 Property, Plant and Equipment, Net 1,039,595 1,026,875 Total Assets $1,603,618 $1,552,330 LIABILITIES AND STOCKHOLDERS' EQUITY Current Liabilities: Accounts payable $ 47,455 $ 44,804 Accrued liabilities 29,168 25,339 Income taxes payable 8,510 7,012 Long-term debt due within one year 24,340 19,672 Total Current Liabilities 109,473 96,827 Accrued Casualty Reserves and Other Liabilities 15,432 14,534 Long-Term Debt due After One Year 36,877 37,220 Deferred Income Taxes and Income Tax Credits 223,562 215,311 Minority Interest in Consolidated Subsidiaries 257,783 251,457 Stockholders' Equity: Common stock, no par value; 60,000,000 shares authorized; 30,498,650 shares issued and outstanding 8,714 8,714 Retained earnings 907,509 887,520 Net unrealized gains on debt and marketable equity securities 44,268 40,747 Total Stockholders' Equity 960,491 936,981 Total Liabilities and Stockholders' Equity $1,603,618 $1,552,330 See accompanying notes. -2- ST. JOE PAPER COMPANY CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS (Unaudited) (Dollars in thousands except per share amounts) Three Months ended March 31 1995 1994 Net Sales $133,061 $116,828 Operating Revenues 50,975 50,540 Net Sales and Operating Revenues 184,036 167,368 Cost of Sales 98,818 98,043 Operating Expenses 36,586 36,483 Cost of Sales and Operating Expenses 135,404 134,526 Gross Profit 48,632 32,842 Selling, General and Administrative Expenses 15,538 13,822 Operating Profit 33,094 19,020 Other Income (Expense): Dividends 565 534 Interest income 3,637 2,504 Interest expense (1,386) (963) Gain on sales and other dispositions of property, plant and equipment 815 384 Other, net 1,372 1,087 5,003 3,546 Income before Income Taxes and Minority Interest 38,097 22,566 Provision for Income Taxes 14,068 7,903 Income before Minority Interest 24,029 14,663 Income Applicable to Minority Interest in Consolidated Subsidiaries 2,515 6,503 Net Income $ 21,514 $ 8,160 Retained Earnings at Beginning of Period 887,520 851,511 Dividends 1,525 1,525 Retained Earnings at End of Period $ 907,509 $ 858,146 Per Share Data: Dividends $ 0.05 $ 0.05 Net Income $ 0.71 $ 0.27 Number of Common Shares Outstanding 30,498,650 30,498,650 See accompanying notes. -3- ST. JOE PAPER COMPANY CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (Dollars in thousands except per share amounts) Three Months ended March 31 1995 1994 Cash Flows from Operating Activities: Net Income $ 21,514 $ 8,160 Adjustments to reconcile net income to cash provided by operating activities: Depreciation and depletion 15,791 15,533 Minority interest in income 2,515 6,503 Gain on sale of property (815) (384) Increase in deferred income taxes 3,212 2,965 Changes in operating assets and liabilities: Increase in accounts receivable (2,025) (7,173) Increase in inventories (18,115) (5,784) Decrease in other assets 6,880 5,517 Increase (decrease) in accounts payable, accrued liabilities and casualty reserves 7,378 (1,536) Increase in income taxes payable 1,498 3,536 Cash Provided by Operating Activities 37,833 27,337 Cash Flows from Investing Activities: Purchases of property, plant and equipment (32,602) (25,582) Purchases of investments: Available for sale (9,845) (721) Held to maturity (61,575) (15,769) Proceeds from dispositions of assets 4,907 1,771 Maturity and redemption of investments: Available for sale 8,502 1,061 Held to maturity 29,552 20,087 Cash Used in Investing Activities (61,061) (19,153) Cash Flows from Financing Activities: Net change in short-term borrowings 8,861 6,398 Dividends paid to stockholders (1,525) (1,525) Repayment of long-term debt (4,536) (326) Dividends paid to minority interest (410) (430) Cash Provided by Financing Activities 2,390 4,117 Net Increase in Cash and Cash Equivalents (20,838) 12,301 Cash and Cash Equivalents at Beginning of Period 71,890 48,304 Cash and Cash Equivalents at End of Period $ 51,052 $ 60,605 Supplemental Disclosure of Cash Flow Information: Cash paid during the year for certain expense items is: Interest $ 1,138 $ 838 Income taxes $ 5,803 $ 2,563 See accompanying notes -4- ST. JOE PAPER COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollars in thousands ) 1. In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of March 31, 1995 and December 31, 1994 and the results of operations and cash flows for the three month period ended March 31, 1995 and 1994. 2. The results of operations for the three month period ended March 31, 1995 and 1994 are not necessarily indicative of the results that may be expected for the full year. 3. Inventories at March 31, 1995 and December 31, 1994: March 31 December 31 1995 1994 Manufactured paper products and associated raw materials $ 31,810 $ 27,023 Materials and supplies 25,834 25,640 Sugar 18,144 5,010 $ 75,788 $ 57,673 4. The Company and its subsidiaries are involved in litigation on a number of matters and are subject to certain claims which arise in the normal course of business, none of which, in the opinion of management, is expected to have a material adverse effect on the Company's consolidated financial position or results of operations. The Company has retained certain self-insurance risks with respect to losses for third party liability, property damage and group health insurance provided to employees. The Company is subject to costs arising out of environmental laws and regulations, which include obligations to remove or limit the effects on the environment of the disposal or release of certain wastes or substances at various sites. It is the Company's policy to accrue and charge against earnings environmental cleanup costs when it is probable that a liability has been incurred and an amount is reasonably estimable. As assessments and cleanups proceed, these accruals are reviewed and adjusted, if necessary, as additional information becomes available. -5- ST. JOE PAPER COMPANY NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (Dollars in thousands ) The Company is currently a party to, or involved in, legal proceedings directed at the cleanup of two Superfund sites. The Company has accrued its allocated share of the total estimated cleanup costs for these two sites. Based upon management's evaluation of the other potentially responsible parties, the Company does not expect to incur additional amounts even though the Company has joint and several liability. Other proceedings involving environmental matters such as alleged discharge of oil or waste material into water or soil are pending against the Company. It is not possible to quantify future environmental costs because many issues relate to actions by third parties or changes in environmental regulation. However, based on information presently available, management believes that the ultimate disposition of currently known matters will not have a material effect on the financial position or liquidity of the Company , but could be material to the results of operation of the Company in any one period. As of March 31, 1995 and December 31, 1994, the aggregate environmental related accruals were $6.7 million. Environmental liabilities are paid over an extended period and the timing of such payments cannot be predicted with any confidence. -6- MANAGEMENT'S DISCUSSION AND ANALYSIS OF THE CONSOLIDATED FINANCIAL CONDITION AND RESULTS OF OPERATIONS OVERVIEW Net sales and operating revenues for the quarter ended March 31, 1995 were $184.0 million, a $16.7 million increase over the same period in 1994. Cost of sales and operating expenses were $135.4 million, up from $134.5 million. These costs were 73.6% of net sales and operating revenues in 1995 compared to 80.4% in 1994. Selling, general and administrative expenses rose from $13.9 million in 1994 to $15.5 million in 1995. As a result of these changes, operating profit during the first quarter of 1995 was $33.1 million compared to $19.0 million in the first quarter of 1995. An analysis of operating results by segment follows: Forest Products % Increase 1995 1994 (Decrease) Net Sales 115,248 84,500 36.4 Cost of Sales 86,497 82,488 4.9 Selling, General and Administrative Expenses 8,061 7,378 9.3 Operating Profit (Loss) 20,690 (5,366) 485.6 The containerboard market continues to be tight with additional price increases effective January 1 and April 1, 1995. Average selling price for the Company's linerboard rose from $360 in the first quarter of 1994 to $509 in 1995, a 41% increase. Net sales to outside customers by the Company's paper mill increased 46% in the first quarter of 1995 compared to the same period last year on a volume increase of 15%. The Company's container revenues were 33% higher in 1995 than the first quarter of 1994 on a volume decrease of 1.7%. Timber sales to outside customers decreased 34% on a volume decline of 10% as more of the Company's timber production was required by the mill. Mill production per day rose by 6% and this increased productivity was a major factor in a 1% reduction in cost per ton. Transportation % Increase 1995 1994 (Decrease) Operating Revenue 43,176 43,136 0.1 Operating Expenses 31,666 31,782 (0.4) Selling, General and Administrative Expenses 4,325 3,825 13.1 Operating Profit 7,185 7,529 (4.6) -7- Operating results for the transportation segment were consistent with the prior year. Revenues for the Florida East Coast Railway Company (FEC) decreased by .9% compared to the first quarter of 1994 while Apalachicola Northern Railroad Company (ANRR) revenues increased by 13.2%, primarily due to an increase in coal shipments. Operating expenses at FEC declined .8% and the ANRR increased 9.2%. Selling, general and administrative expenses rose 11.8% at FEC and 45.3% ($65,939) at ANRR. Sugar % Increase 1995 1994 (Decrease) Net Sales 12,335 13,370 (7.7) Cost of Sales 8,366 10,809 (22.6) Selling, General and Administrative Expenses 1,470 1,059 38.8 Operating Profit 2,499 1,502 66.4 The sugar segment experienced a 10.8% volume reduction in the first quarter of 1995 compared to 1994. The selling price rose 3.5%. Increased productivity drove down the cost per ton of sugar by 11.3%. The segment produced 28.3% more sugar in 1995 than 1994 with an 18.4% increase in the amount of cane ground and an 8.5% increase in the yield. The increase in selling, general and administrative expenses is primarily due to the Everglades Agricultural Privilege Tax which was enacted in the second quarter of 1994 and not reflected in the first quarter of 1994. Communications % Increase 1995 1994 (Decrease) Operating Revenue 7,799 7,404 5.3 Operating Expenses 4,920 4,701 4.7 Selling, General and Administrative Expenses 1,148 1,051 9.2 Operating Profit 1,731 1,652 4.8 Operating revenues increased in the first quarter of 1995 compared to 1994 largely due to adjustments in the interstate access charge pooling process. All three local exchange companies began their cable maintenance earlier in 1995 than 1994 resulting in increased operating expenses for the first quarter. -8- Real Estate % Increase 1995 1994 (Decrease) Net Sales and Operating Revenue 6,011 19,482 (69.2) Cost of Sales and Operating Revenue 4,459 5,242 (14.9) Selling, General and Administrative Expenses 564 538 4.8 Operating Profit 988 13,702 (92.8) In the first quarter of 1994, realty property sales of $14.6 million ($13.7 million by Gran Central, Florida East Coast Industries, Inc. real estate subsidiary, and $.9 million by the Company) occurred which were not repeated in the first quarter of 1995. Rent and other income increased by $1.2 million in 1995 compared to the same period in 1994. Gran Central's cost of sales decreased by 9.4% and Southwood PropertiesO, the Company's real estate division, decreased by 1.3%. Selling, general and administrative expenses increased 9.0% at Gran Central and declined 6.7% at Southwood Properties. Other Income increased $1.5 million in the first quarter of 1995 compared to 1994. Interest income increased by $1.1 million reflecting increased investment and higher rates. Net Income increased $13.4 million (163.7%) during the first quarter of 1995 from the same period in 1994. Earnings per share increased $0.44 to $0.71. Financial Position The Company's financial position remains strong. Current assets rose to $309.1 million, an $8.1 million increase from year end. Increases in current liabilities of $12.6 million caused the current ratio to drop from 3.1 at year end to 2.8 at the end of the first quarter. The Company increased its investment in marketable securities by $31.2 million over year end. Net property, plant and equipment increased by $12.7 million, largely in Florida East Coast Industries, Inc. Deferred income taxes grew by $8.3 million, due to the tax effect of an increase in the unrealized gains on debt and marketable equity securities and a decrease in alternative minimum tax credits. Stockholders' equity at March 31, 1995 was $31.49 per share, an increase of $0.77 from December 31, 1994. 9 PART II - OTHER INFORMATION Item 1. Legal Proceedings No change from Form 10-K for the year ended December 31, 1994 Item 5. Other Information The Company is not aware of any other matters of significance to be reported hereunder. 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. St. Joe Paper Company (Registrant) E. C. Brownlie Vice President D. M. Groos Comptroller May 15, 1995 Date -10- EX-27 2
5 1000 3-MOS DEC-31-1995 MAR-31-1995 51,052 75,204 90,631 0 75,788 309,109 1,672,337 632,742 1,603,618 109,473 36,877 8,714 0 0 44,268 1,603,618 133,061 184,036 98,818 150,942 0 0 1,386 38,097 14,068 24,029 0 0 0 21,514 .71 .71
-----END PRIVACY-ENHANCED MESSAGE-----