-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, P8g0CNuSeSRtLBT2wUpY7+G112F9jDJKrgmSl0az847Z/rcjriIrm6Q5QV72OxxF TDw/0TfFveAAvmPDR8vv/w== 0001275287-05-001484.txt : 20050427 0001275287-05-001484.hdr.sgml : 20050427 20050426212610 ACCESSION NUMBER: 0001275287-05-001484 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 20050426 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Regulation FD Disclosure FILED AS OF DATE: 20050427 DATE AS OF CHANGE: 20050426 FILER: COMPANY DATA: COMPANY CONFORMED NAME: WALTER INDUSTRIES INC /NEW/ CENTRAL INDEX KEY: 0000837173 STANDARD INDUSTRIAL CLASSIFICATION: GEN BUILDING CONTRACTORS - RESIDENTIAL BUILDINGS [1520] IRS NUMBER: 133429953 STATE OF INCORPORATION: DE FISCAL YEAR END: 0531 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13711 FILM NUMBER: 05774474 BUSINESS ADDRESS: STREET 1: 1500 N DALE MABRY HWY CITY: TAMPA STATE: FL ZIP: 33607 BUSINESS PHONE: 8138714811 MAIL ADDRESS: STREET 1: 1500 N DALE MABRY HWY STREET 2: 1500 NORTH MABRY HGWY CITY: TAMPA STATE: FL ZIP: 33607 FORMER COMPANY: FORMER CONFORMED NAME: HILLSBOROUGH HOLDINGS CORP DATE OF NAME CHANGE: 19910814 8-K 1 wi2530.txt ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 Or 15(D) of The Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) April 26, 2005 WALTER INDUSTRIES, INC. (Exact name of registrant as specified in its charter) Delaware 001-13711 13-3429953 (State or other jurisdiction of (Commission (IRS Employer incorporation or organization) File Number) Identification No.) 4211 W. Boy Scout Boulevard, Tampa, Florida 33607 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (813) 871-4811 NOT APPLICABLE (Former name or former address, if changed since last report) Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: [ ] Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) [ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) [ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) [ ] Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13-4(c)) ================================================================================ Item 2.02 Results of Operations and Financial Condition On April 26, 2005, Walter Industries, Inc. issued a press release filed herewith as Exhibit 99.1 and hereby incorporated by reference setting forth Walter Industries, Inc.'s first quarter 2005 earnings. Item 7.01 Regulation FD Disclosure The following information is furnished pursuant to Item 7.01 "Regulation FD Disclosure." On April 26, 2005, Walter Industries, Inc. issued a press release announcing second quarter earnings expectations and confirming full year 2005 expectations. A copy of the Walter Industries, Inc. press release is attached hereto as Exhibit 99.2. 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 hereunto duly authorized. WALTER INDUSTRIES, INC. By: /s/ Victor P. Patrick ----------------------------- Title: Victor P. Patrick Sr. Vice President, General Counsel and Secretary Date: April 26, 2005 EXHIBIT INDEX (99.1) Press release dated: April 26, 2005, Walter Industries Announces First Quarter 2005 Results (99.2) Press release dated: April 26, 2005,Walter Industries Announces Second Quarter Earnings Expectations and Confirms Full Year 2005 Expectations EX-99.1 2 wi2530ex991.txt Exhibit 99.1 WALTER INDUSTRIES ANNOUNCES FIRST QUARTER 2005 RESULTS -- Earnings of $0.41 Per Diluted Share Reported -- -- Coal Mining Operation Continues Strong Performance -- TAMPA, Fla., April 26 /PRNewswire-FirstCall/ -- Walter Industries, Inc. (NYSE: WLT) today reported earnings of $0.41 per diluted share for the first quarter ended March 31, 2005, compared with a net loss of $0.11 per share in the prior year's first quarter. Net income for the quarter totaled $18.8 million compared with a net loss of $4.6 million in the first quarter last year. Net income for the quarter reflected continued solid earnings, principally from increased pricing and favorable production volume and mining costs in the Company's Natural Resources segment. The Industrial Products segment showed improvement in operating income, which included pre-tax income of $5.1 million related to a favorable insurance claim settlement at U.S. Pipe. The Financing segment also continued its consistent earnings performance during the quarter. These favorable impacts were partially offset by a loss in the Company's Homebuilding segment. Diluted earnings per share of $0.41 for the quarter compares to the previously issued range of earnings expectations of $0.25 to $0.33 per diluted share. "Our Natural Resources segment continued to increase profitability with excellent production performance and improved pricing, leading to another solid quarter," said Chairman and CEO Don DeFosset. "With strong first quarter results behind us and improving results in our U.S. Pipe business, we remain on track for an outstanding year." First Quarter 2005 Financial Results Net sales and revenues for the first quarter were $345.3 million, up 5.9% versus the year-ago period. This improvement primarily reflects a 51% year- over-year increase at Natural Resources, as well as increases at U.S. Pipe and Sloss Industries, which were partially offset by lower Homebuilding and Financing revenues. Operating income of $31.8 million for the quarter was favorable by $34.8 million to the prior-year period, reflecting continued positive trends in pricing and production performance at Jim Walter Resources and U.S. Pipe. The Financing segment also generated solid performance. The Homebuilding segment reported a loss in the quarter, although sales order trends continued to rebound. First Quarter Results by Operating Segment Natural Resources Segment The Natural Resources segment reported first quarter revenue of $97.4 million, up 51% versus the same period last year, and operating income of $24.5 million compared to an operating loss of $2.3 million in the prior- year period, primarily driven by significant pricing improvements and 6% lower production costs per ton. Jim Walter Resources sold 1.5 million tons of coal at an average price of $56.47 per ton, compared to 1.47 million tons at $35.36 per ton during the same period last year. Several new customer contract sales that were not expected in the first quarter and spot coal transactions during the quarter at prices averaging $102 per ton helped drive higher average prices and increased profitability. The natural gas operation sold 1.76 billion cubic feet of gas at an average price of $6.75 per thousand cubic feet versus 2.01 billion cubic feet at $6.16 per thousand cubic feet in the prior-year quarter. Along with strong year-over-year metallurgical coal price increases, Jim Walter Resources continued its outstanding production performance in the first quarter, mining in excess of 1.9 million tons of coal. This production exceeded the same period last year by more than 425,000 tons, or 28%, despite three longwall moves during the quarter. Industrial Products Segment The Industrial Products segment reported $115.6 million in revenue for the first quarter of 2005, compared to $114.1 million for the prior-year period. The prior-year period included $5.9 million of revenue from Vestal Manufacturing, which was sold in April 2004. Excluding Vestal's results, segment revenue increased 7%. The higher revenue reflects a 26% increase in ductile iron pipe prices, offset by lower pipe and fittings sales volumes due to unfavorable weather during the quarter, which delayed deliveries. Operating income for the segment totaled $5.5 million for the quarter, compared to an operating loss of $1.6 million for the same period last year. Operating income was favorably impacted by a $5.1 million insurance claim settlement. Excluding this settlement, operating income improved $2.0 million versus last year due to higher pricing, partially offset by lower volumes and higher scrap metal costs. Financing Segment The Financing segment reported first quarter revenue of $59.1 million compared with $61.0 million in the year-ago period. The decline in revenue was attributed to reduced yields and a decrease in the instalment note portfolio. Prepayment speeds increased to 10.0% in the first quarter, compared to 8.4% in the prior-year period. Operating income for the segment was $14.6 million in the first quarter versus $13.8 million for the same period in 2004. Current period results include income of $1.1 million, primarily from reductions in insurance loss and other accruals. Excluding these items, operating income was essentially flat with the same period in 2004. Reduced selling, general and administrative costs, lower interest expense and a lower provision for instalment notes receivable losses on repossessed homes for the quarter were offset by the overall decline in portfolio earnings. Delinquencies (the percentage of amounts outstanding more than 30 days past due) improved to 3.9% in the first quarter versus 4.5% in the first quarter of last year. Homebuilding Segment The Homebuilding segment reported first quarter revenue of $48.7 million versus $64.1 million for the same period last year. The Homebuilding group completed 650 homes during the quarter at an average net selling price of $74,800, compared with 913 homes at an average net selling price of $70,100 for the prior-year period. The segment reported an operating loss for the first quarter totaling $8.5 million, compared to the prior-year period loss of $8.8 million. The current period loss reflects the 29% decline in delivered units, partially offset by higher sales prices and cost-reduction activities such as reduced advertising expenses and lower overhead resulting from 26 branch closures in 2004. The decline in unit deliveries reflects fewer sales orders in the second and third quarters of 2004 and construction-related challenges in two of Jim Walter Homes' six divisions. While total new sales contracts were down slightly, recent marketing initiatives and sales center enhancements are driving improved sales order trends in the first quarter, with same-store sales up 16% versus the first quarter last year. The backlog rose 9% from 2,024 units to 2,198 units versus the prior-year's quarter. Other Segment Sloss Industries reported revenue for the first quarter of $30.6 million, up 24% versus the same period last year and reported operating income of $1.8 million, which was flat with the first quarter of 2004. Current-period results reflect higher furnace and foundry coke pricing, offset by increases in production costs, higher met coal raw material costs and expenses from a legal settlement. Operating results also included an accrual reduction in the Company's land group of $1.1 million resulting from a favorable court ruling related to a coal mineral rights dispute. Conference Call Webcast Walter Industries Chairman and CEO Don DeFosset and members of the Company's leadership team will discuss first quarter 2005 results and other general business matters on a conference call and live Webcast to be held on Wednesday, April 27, 2005, at 9 a.m. EDT. To listen to the event live or in archive, visit the Company Web site at http://www.walterind.com . The call will remain available for 30 days. Walter Industries, Inc. is a diversified company with annual revenues of $1.5 billion. The Company is a leader in affordable homebuilding, related financing, and water transmission products, and is a significant producer of high-quality metallurgical coal for worldwide markets. Based in Tampa, Fla., the Company employs approximately 5,100 people. For more information about Walter Industries, please call Joe Troy, Senior Vice President - Financial Services at (813) 871-4404, or visit the Company Web site at http://www.walterind.com . Safe Harbor Statement Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include, among others, changes in customers' demand for the Company's products, changes in raw material, labor, equipment and transportation costs and availability, geologic and weather conditions, changes in extraction costs and pricing in the Company's mining operations, changes in customer orders, pricing actions by the Company's competitors, the collection of approximately $14 million of receivables associated with a working capital adjustment arising from the sale of a subsidiary in 2003, potential changes in the mortgage-backed capital market, and general changes in economic conditions. Risks associated with forward-looking statements are more fully described in the Company's filings with the Securities and Exchange Commission. The Company assumes no duty to update its forward-looking statements as of any future date. WALTER INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS ($ in Thousands) Unaudited For the three months ended March 31, ---------------------------- 2005 2004 ------------ ------------ Net sales and revenues: Net sales $ 286,730 $ 265,683 Interest income on instalment notes 53,493 55,266 Miscellaneous 5,110 5,087 345,333 326,036 Cost and expenses: Cost of sales (exclusive of depreciation) 217,396 225,992 Depreciation 14,320 15,252 Selling, general and administrative 42,570 48,399 Provision for losses on instalment notes 3,185 3,491 Postretirement benefits 3,238 2,512 Interest expense - mortgage- backed/asset-backed notes 31,435 31,726 Interest expense - corporate debt 3,612 3,945 Amortization of other intangibles 1,063 1,485 Restructuring and impairment charges 305 155 317,124 332,957 Income (loss) from continuing operations before income tax expense 28,209 (6,921) Income tax (expense) benefit (9,027) 2,319 Income (loss) from continuing operations 19,182 (4,602) Discontinued operations, net of income taxes (1) (417) -- Net Income (loss) $ 18,765 $ (4,602) Basic Income (Loss) per share: Income (loss) from continuing operations $ 0.51 $ (0.11) Discontinued Operations (0.01) -- Net Income (Loss) $ 0.50 $ (0.11) Weighted average number of shares outstanding 37,719,968 41,927,214 Diluted Income (Loss) per share: Income (loss) from continuing operations $ 0.41 $ (0.11) Discontinued Operations -- -- Net Income (Loss) $ 0.41 $ (0.11) Weighted average number of dilutive securities (2) 48,799,982 41,927,214 (1) 2005 expenses incurred during the quarter resulted from the Company's sale of its AIMCOR subsidiary in December 2003. (2) Weighed average number of shares outstanding was used in the 2004 calculation, as the inclusion of potentially dilutive securities would have had an anti-dilutive effect. WALTER INDUSTRIES, INC. AND SUBSIDIARIES RESULTS BY OPERATING SEGMENT ($ in Thousands) Unaudited For the three months ended March 31, ---------------------------- 2005 2004 ------------ ------------ NET SALES AND REVENUES: Homebuilding $ 48,679 $ 64,117 Financing 59,093 60,980 Industrial Products 115,582 114,077 Natural Resources 97,431 64,654 Other 32,700 26,822 Consolidating Eliminations (8,152) (4,614) $ 345,333 $ 326,036 OPERATING INCOME (LOSS): Homebuilding $ (8,549) $ (8,809) Financing 14,586 13,847 Industrial Products 5,480 (1,550) Natural Resources 24,542 (2,313) Other (2,478) (3,929) Consolidating Eliminations (1,760) (222) Operating income (loss) 31,821 (2,976) Corporate debt interest expense (3,612) (3,945) Income (loss) from continuing operations before income tax expense $ 28,209 $ (6,921) WALTER INDUSTRIES, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION Unaudited For the three For the three months ended months ended March 31, 2005 March 31, 2004 -------------- -------------- Depreciation ($ in thousands): Homebuilding $ 1,196 $ 1,245 Financing 360 338 Industrial Products 6,552 6,853 Natural Resources 5,047 5,594 Other 1,165 1,222 $ 14,320 $ 15,252 Amortization of other intangibles ($ in thousands): Financing $ 1,063 $ 1,485 Restructuring and impairment charges ($ in thousands): U.S. Pipe Anniston plant shutdown costs $-- $ 296 Mine No. 5 shutdown costs 305 (141) $ 305 $ 155 Operating Data: Homebuilding New sales contracts, net of cancellations 847 877 Unit completions 650 913 Average sale price $ 74,800 $ 70,100 Ending homes backlog 2,198 2,024 Financing Delinquencies 3.9% 4.5% Prepayment speeds 10.0% 8.4% Industrial Products Ending pipe & fittings backlog, tons 174,794 175,865 Ending pipe & fittings backlog, dollars ($ in thousands) $ 144,114 $ 118,821 Natural Resources Tons sold Metallurgical coal, contracts (in thousands) 1,027 1,058 Metallurgical coal, spot sales (in thousands) 82 -- Steam coal (in thousands) 392 408 Average sale price per ton Metallurgical coal, contracts $ 60.92 $ 35.49 Metallurgical coal, spot sales $ 102.20 $ -- Steam coal $ 35.27 $ 35.01 Tons of coal produced (in thousands) 1,931 1,506 Mining costs per ton: (1) Mines No. 4 & 7 $ 30.35 $ 33.00 Mine No. 5 $ 42.38 $ 42.49 Total $ 32.75 $ 34.70 Natural gas sales, in mmcf (in thousands) 1,756 2,013 Natural gas average sale price per mmcf $ 6.75 $ 6.16 Sloss Industries Tons of foundry coke sold 34,924 29,818 Tons of furnace coke sold 62,250 76,944 Foundry coke average sale price per ton $ 238.86 $ 161.90 Furnace coke average sale price per ton $ 206.00 $ 145.31 (1) Mining costs exclude selling, general and administrative expenses, postretirement benefit expenses, asset retirement obligation expenses, royalties, Black Lung excise taxes and certain other costs related to post-mining activities. WALTER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ($ in Thousands) Unaudited
March 31, December 31, March 31, 2005 2004 2004 ------------ ------------ ------------ ASSETS Cash and cash equivalents $ 8,747 $ 46,924 $ 13,860 Short-term investments, restricted 99,219 99,905 97,753 Instalment notes receivable, net of allowance of $11,084, $11,200 and $11,490, respectively 1,700,917 1,717,205 1,751,497 Receivables, net 173,986 170,219 170,283 Income tax receivable 14,998 14,977 14,054 Inventories 286,453 233,547 237,455 Prepaid expenses 28,738 19,590 9,925 Property, plant and equipment, net 332,440 331,959 346,236 Investments 6,111 6,165 6,215 Deferred income taxes 51,866 47,943 49,577 Unamortized debt expense 35,683 36,726 34,428 Other long-term assets, net 46,066 46,340 43,374 Goodwill and other intangibles, net 143,923 144,986 148,477 $ 2,929,147 $ 2,916,486 $ 2,923,134 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 100,786 $ 90,217 $ 101,385 Accrued expenses 114,577 125,681 115,733 Debt: Mortgage-backed/asset-backed notes 1,724,067 1,763,827 1,801,540 Senior debt 6,900 -- 125,528 Convertible senior subordinated notes 175,000 175,000 -- Accrued interest 17,279 16,813 16,322 Accumulated postretirement benefits obligation 281,200 282,599 290,396 Other long-term liabilities 205,422 203,122 201,185 Total liabilities 2,625,231 2,657,259 2,652,089 Stockholders' equity 303,916 259,227 271,045 $ 2,929,147 $ 2,916,486 $ 2,923,134
WALTER INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE THREE MONTHS ENDED MARCH 31, 2005 ($ in Thousands) Unaudited
Accumul. Other Compreh. Compreh. Accumul. Income Common Captl in Treasury Total Income Deficit (Loss) Stock Excess Stock ---------- ---------- ---------- ---------- ---------- ---------- ---------- Balance at December 31, 2004 $ 259,227 (609,048) (51,109) 580 1,178,121 (259,317) Compreh. income: Net income $ 18,765 18,765 18,765 Other compreh. income, net of tax: Net unrealized gain on hedges 741 741 741 Compreh. income $ 19,506 Stock issued upon exercise of stock options 13,319 14 13,305 Tax benefit from the exercise of stock options 12,995 12,995 Dividends paid,$.04 per share (1,494) (1,494) Stock-based compensation 363 363 Balance at March 31, 2005 $ 303,916 (590,283) (50,368) 594 1,203,290 (259,317)
WALTER INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS ($ in Thousands) Unaudited For the three months ended March 31, -------------------------------- 2005 2004 -------------- -------------- OPERATING ACTIVITIES Income (loss) from continuing operations $ 19,182 $ (4,602) Adjustments to reconcile income (loss) to net cash used in continuing operations: Provision for losses on instalment notes 3,185 3,491 Depreciation 14,320 15,252 Benefit from deferred income taxes (3,870) (2,079) Tax benefit on the exercise of employee stock options 12,995 -- Accumulated postretirement benefits obligation (1,399) (1,904) Provision for (decrease in) other long-term liabilities 3,041 (1,638) Amortization of other intangibles 1,063 1,485 Amortization of debt expense 1,626 1,382 Stock-based compensation expense 363 -- Decrease (increase) in assets: Receivables (3,767) (14,786) Income tax receivable (74) 3,217 Inventories (52,906) (12,930) Prepaid expenses (9,148) (3,397) Increase (decrease) in liabilities: Accounts payable 10,569 1,496 Accrued expenses (11,104) 10,208 Accrued interest 466 (797) Cash flows used in continuing operations (15,458) (5,602) Cash flows used in discontinued operations (417) (3,611) Cash flows used in operating activities (15,875) (9,213) INVESTING ACTIVITIES Notes originated from sales and resales of homes and purchases of loan portfolios (93,812) (119,903) Cash collections on accounts and payouts in advance of maturity 106,915 114,077 Decrease in short-term investments, restricted 686 2,562 Additions to property, plant and equipment, net of retirements (14,801) (8,959) Decrease (increase) in investments and other assets, net 328 (7,139) Cash flows used in investing activities (684) (19,362) FINANCING ACTIVITIES Issuance of debt 47,400 76,500 Retirement of debt (80,260) (93,084) Additions to unamortized debt expense (583) -- Dividends paid (1,494) (1,258) Exercise of employee stock options 13,319 295 Cash flows used in financing activities (21,618) (17,547) Net decrease in cash and cash equivalents (38,177) (46,122) Cash and cash equivalents at beginning of period 46,924 59,982 Cash and cash equivalents at end of period $ 8,747 $ 13,860 SOURCE Walter Industries, Inc. -0- 04/26/2005 /CONTACT: Joe Troy, Senior Vice President - Financial Services, Walter Industries, +1-813-871-4404/ /Photo: http://www.newscom.com/cgi-bin/prnh/20020429/FLM010LOGO-c AP Archive: http://photoarchive.ap.org PRN Photo Desk, photodesk@prnewswire.com / /Web site: http://www.walterind.com / EX-99.2 3 wi2530ex992.txt Exhibit 99.2 WALTER INDUSTRIES ANNOUNCES SECOND QUARTER EARNINGS EXPECTATIONS AND CONFIRMS FULL YEAR 2005 EXPECTATIONS TAMPA, Fla., April 26 /PRNewswire-FirstCall/ -- Walter Industries, Inc. (NYSE: WLT) today announced second quarter earnings expectations and affirmed its previously communicated expectations for the full year 2005. Based on current business forecasts and anticipated market conditions, the Company expects to generate second quarter earnings of $0.54 to $0.62 per diluted share. The Company maintains its previously communicated expectation for full-year earnings to be in the range of $2.50 to $3.10 per diluted share. Conference Call Webcast Walter Industries Chairman and CEO Don DeFosset and members of the Company's leadership team will discuss first quarter 2005 results and other general business matters on a conference call and live Webcast to be held on Wednesday, April 27, 2005, at 9 a.m. EDT. To listen to the event live or in archive, visit the Company Web site at http://www.walterind.com . The call will remain available for 30 days. Walter Industries, Inc. is a diversified company with annual revenues of $1.5 billion. The Company is a leader in affordable homebuilding, related financing, and water transmission products, and is a significant producer of high-quality metallurgical coal for worldwide markets. Based in Tampa, Fla., the Company employs approximately 5,100 people. For more information about Walter Industries, please call Joe Troy, Senior Vice President - Financial Services at (813) 871-4404, or visit the Company Web site at http://www.walterind.com . Safe Harbor Statement Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include, among others, changes in customers' demand for the Company's products, changes in raw material, labor, equipment and transportation costs and availability, geologic and weather conditions, changes in extraction costs and pricing in the Company's mining operations, changes in customer orders, pricing actions by the Company's competitors, the collection of approximately $14 million of receivables associated with a working capital adjustment arising from the sale of a subsidiary in 2003, potential changes in the mortgage-backed capital market, and general changes in economic conditions. Risks associated with forward-looking statements are more fully described in the Company's filings with the Securities and Exchange Commission. The Company assumes no duty to update its forward-looking statements as of any future date. SOURCE Walter Industries, Inc. -0- 04/26/2005 /CONTACT: Joe Troy, Senior Vice President - Financial Services, Walter Industries, Inc., +1-813-871-4404 / /Photo: http://www.newscom.com/cgi-bin/prnh/20020429/FLM010LOGO-c AP Archive: http://photoarchive.ap.org PRN Photo Desk, photodesk@prnewswire.com / /Web site: http://www.walterind.com / -----END PRIVACY-ENHANCED MESSAGE-----