EX-99.1 2 wi8871ex991.txt EXHIBIT 99.1 Exhibit 99.1 WALTER INDUSTRIES ANNOUNCES FOURTH QUARTER AND FULL-YEAR 2006 RESULTS - Fourth Quarter Earnings of $0.69 per Diluted Share; $0.55 from Continuing Operations - - Full-Year Earnings of $3.87 per Diluted Share; $2.86 from Continuing Operations - - Natural Resources Reports Solid Fourth Quarter Coal Production - - Board of Directors Announces 25 Percent Increase in Quarterly Dividend to $0.05 per Share - TAMPA, Fla., Feb. 7 /PRNewswire-FirstCall/ -- Walter Industries, Inc. (NYSE: WLT) today reported net income of $35.9 million, or $0.69 per diluted share for the fourth quarter ended Dec. 31, 2006 and $198.4 million, or $3.87 per diluted share for the full year 2006. Income from continuing operations for the fourth quarter, excluding earnings of Mueller Water Products, which was spun off in December 2006, totaled $28.4 million, or $0.55 per diluted share, compared with a loss from continuing operations of $29.4 million, or $0.75 per share in the fourth quarter last year. (Logo: http://www.newscom.com/cgi-bin/prnh/20020429/FLM010LOGO-c) Full-year income from continuing operations in 2006 totaled $145.6 million, or $2.86 per diluted share compared with $34.4 million, or $0.78 per diluted share in 2005. Prior-year results for the fourth quarter and full-year included a pre-tax goodwill impairment charge at Homebuilding of $63.2 million. "Walter Industries accomplished significant strategic actions in 2006, including the initial public offering and spin-off of Mueller Water Products," said Walter Industries Chairman Michael T. Tokarz. "With these key initiatives now successfully completed, we are well positioned to continue our value creation strategy." Separately, the Company's Board of Directors announced a 25 percent increase in the Company's regular quarterly dividend, from $0.04 to $0.05 per share, payable on March 16, 2007 to shareholders of record at the close of business on Feb. 20, 2007. "The Board views this dividend increase as a reflection of our confidence in the Company's future prospects," Tokarz added. Fourth Quarter 2006 Financial Results Net sales and revenues from continuing operations for the fourth quarter totaled $316.8 million, down from $324.9 million in the prior-year period. Revenues at Natural Resources were $17.3 million lower versus the prior-year period, driven by reduced coal sales volumes. As previously reported, lower volumes resulted from delays in shipments originally scheduled for December 2006, as well as low inventory levels entering the fourth quarter. These negative impacts were partially offset by revenue growth of 9.8 percent in the Financing and Homebuilding group, principally as a result of higher unit completions and increased home selling prices. Operating income from continuing operations for the fourth quarter totaled $73.7 million compared to an operating loss of $3.2 million in the fourth quarter 2005. Results in the current-year period include income of $23.4 million related to the settlement of an insurance claim associated with the 2005 water ingress problem at Mine No. 5, a $4.1 million reduction in employee post-retirement benefits expense and $2.9 million in incremental stock compensation expense at Financing and Homebuilding, as well as a $3.4 million property impairment charge at Homebuilding's modular division. Operating income in the prior year reflected a goodwill impairment charge of $63.2 million at Homebuilding. Excluding these unusual items, operating income from continuing operations declined $7.5 million, primarily driven by the lower coal sales volumes, partially offset by operating improvements at Homebuilding. Jim Walter Resources Chief Executive Officer George R. Richmond said, "I am pleased with our operating performance in the fourth quarter, despite some delays in metallurgical coal shipments. Our mining operation delivered solid results at Mine Nos. 4 and 7, and we completed production at Mine No. 5 as planned in December 2006. Even with this mine closure, our total monthly production improved sequentially throughout the quarter and these production improvements have continued through January 2007." Full Year 2006 Financial Results Net sales and revenues from continuing operations for the full year 2006 increased 15.1 percent versus the prior year. The significant increase in revenues stemmed primarily from higher pricing at Natural Resources as well as increased pricing and volumes at Homebuilding. Operating income from continuing operations for the full year 2006 was $269.8 million, versus $94.5 million in the prior year. Excluding the insurance claim income of $23.4 million and the $63.2 million goodwill impairment charge in 2005, operating income increased approximately 56 percent. The improvement was primarily driven by higher metallurgical coal pricing at Natural Resources, plus increased on-your-lot completions and reduced operating expenses at Homebuilding. Fourth Quarter Results by Operating Group Natural Resources & Sloss Natural Resources, which include the operations of Jim Walter Resources and Kodiak Mining, reported revenues of $153.0 million in the fourth quarter, down $17.3 million versus the same period last year. This reduction was primarily due to lower coal sales volumes and natural gas prices, partially offset by the Mine No. 5 insurance settlement recorded as miscellaneous revenue, as well as higher average coal prices. These higher average prices reflect a change in sales mix from a combination of metallurgical and steam coal sold in the prior-year period to 100 percent metallurgical coal sales in the current-year period. Natural Resources sold 1.1 million tons of metallurgical coal during the quarter at an average price of $101.59 per short ton FOB port, compared to 1.2 million tons of metallurgical coal at an average price of $113.59 per ton and 273,000 tons of steam coal at $34.84 per ton during the same period last year. Shipments equating to approximately 180,000 tons originally scheduled for delivery in December 2006 were delayed until the first quarter 2007. Jim Walter Resources produced 1.4 million tons for the quarter, a 25.0 percent increase over the prior-year period. In the fourth quarter 2005, production at Mine No. 7 was negatively impacted by unfavorable geologic conditions. Fourth quarter 2006 production improved 17.9 percent sequentially versus the third quarter 2006, as longwall advance rates at Mine No. 4 returned to normal levels as expected. Average coal production costs per ton improved 14.5 percent compared to the prior year and 15.6 percent versus the third quarter 2006, primarily due to positive impacts from higher volumes. Mine No. 5, which contributed 152,000 tons during the fourth quarter 2006, closed in December as planned. The natural gas operation sold 1.9 billion cubic feet of gas at an average price of $8.44 per thousand cubic feet in the fourth quarter 2006, versus 1.7 billion cubic feet of gas at $10.54 per thousand cubic feet in the prior-year period. Natural gas prices realized in the current-year period include the benefit of hedging approximately 56 percent of production at an average price of $10.05 per thousand cubic feet, compared with approximately 65 percent of production hedged in the prior year at an average of $9.10. Spot prices in the current-year period averaged $6.46 per thousand cubic feet versus $12.72 in the prior-year period. Natural Resources reported operating income of $63.7 million in the fourth quarter, compared to $51.7 million in the prior-year period. Operating income in the current-year period includes income of $23.4 million from the previously mentioned insurance settlement, as well as higher average coal prices. These positive impacts were partially offset by lower coal sales volumes and lower gas prices. Results for the current-year period also reflect lower idle mine charges and slightly improved production costs versus the prior-year period. Sloss Industries, which is now reported as a separate segment, generated fourth quarter revenues of $30.4 million, down $2.7 million from the prior- year period due to lower furnace coke sales volumes and a reduction in revenues associated with the sale of its chemicals division in November 2006. Operating income for the quarter totaled $2.5 million, down $1.6 million from the prior-year period, primarily reflecting lower volumes. Financing & Homebuilding The Financing and Homebuilding group reported combined revenues of $131.5 million for the fourth quarter 2006, compared to $119.8 million in the prior- year period. The increase of $11.7 million versus the prior-year period was primarily due to an 11.2 percent increase in on-your-lot home completions and a 21.4 percent increase in average on-your-lot selling prices. The Financing and Homebuilding group's combined operating income was $8.0 million for the quarter, compared to an operating loss of $54.2 million in last year's fourth quarter. Results for the fourth quarter 2005 included a goodwill impairment charge of $63.2 million at Homebuilding, while results in the current-year period include a $4.1 million reduction in post-retirement benefits expense, a $3.4 million property impairment charge at the segment's modular home manufacturing business, and $2.9 million in incremental stock compensation expense. Excluding these unusual items, operating income in the current-year period increased 13.7 percent versus the prior-year period, due to higher on-your-lot completions, higher average net selling prices and improved gross margins, partially offset by higher interest costs and lower prepayment income on the mortgage portfolio. On-your-lot completions in the fourth quarter 2006 increased 72 units, reflecting improvements in contractor availability, and average net selling prices at Homebuilding increased 21.4 percent to $97,700. Modular home shipments in the current quarter declined 148 units, reflecting the discontinued production of certain low-margin products. The Company said today that it will exit the internal manufacture of its modular homes product line since sufficient capacity is available in the industry. Financing continued its strong financial performance in the fourth quarter and full year despite lower prepayment income and higher stock compensation expense. At Dec. 31, 2006, delinquencies on the mortgage portfolio (the percentage of amounts outstanding more than 30 days past due) were 4.4 percent, an improvement from 5.2 percent at Dec. 31, 2005. Other Results in the "Other" segment, which includes the Company's corporate expenses and land subsidiaries, improved $3.7 million versus the same period last year, reflecting lower corporate expenses in the current-year period aided by lower employee and benefit-related costs, as well as lower legal expenses. Interest expense for the fourth quarter declined $4.1 million versus the same period in 2005, reflecting significantly lower corporate debt. Results for the current quarter also reflect debt conversion expenses of $17.8 million, representing previously announced inducement premiums and other costs related to the conversion of $147.6 million of Senior Subordinated Convertible Notes to equity. Income tax expense for the fourth quarter reflects the non-deductibility of the debt conversion expenses. The effective tax rate for the full-year 2006 of 31.9 percent reflects the benefit of percentage depletion, partially offset by the effect of non-deductible debt conversion expense. Conference Call Web cast Members of the Company's leadership team will discuss Walter Industries' fourth quarter results and other general business matters during a conference call and live Web cast to be held on Thursday, Feb. 8, 2007, at 10 a.m. Eastern Standard Time. To listen to the event live or in archive, visit the Company Web site at www.walterind.com. About Walter Industries Walter Industries, Inc. is a diversified company with consolidated annual revenues of approximately $1.3 billion. The Company is a significant producer of high-quality metallurgical coal and natural gas for worldwide markets and is a leader in financing and affordable homebuilding. The Company employs approximately 2,800 people. For more information about Walter Industries, please visit the Company Web site at www.walterind.com. Safe Harbor Statement Except for historical information contained herein, the statements in this release are forward-looking and made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include, among others, changes in customers' demand for the Company's products, changes in raw material, labor, equipment and transportation costs and availability, geologic and weather conditions, changes in extraction costs and pricing in the Company's mining operations, changes in customer orders, pricing actions by the Company's competitors, changes in law, potential changes in the mortgage-backed capital markets, and general changes in economic conditions. Those risks also include the timing of and ability to execute any strategic actions that may be pursued. Risks associated with forward-looking statements are more fully described in the Company's filings with the Securities and Exchange Commission. The Company assumes no duty to update its forward-looking statements as of any future date. WALTER INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS ($ in Thousands) Unaudited For the three months ended December 31, ---------------------------- 2006 2005 ------------ ------------ Net sales and revenues: Net sales $ 232,993 $ 269,067 Interest income on instalment notes 48,758 49,002 Miscellaneous (1) 35,076 6,878 316,827 324,947 Cost and expenses: Cost of sales (exclusive of depreciation) 158,578 184,693 Depreciation 10,532 8,314 Selling, general and administrative 36,606 36,322 Provision for losses on instalment notes 2,301 2,514 Postretirement benefits 318 3,600 Interest expense - mortgage- backed/asset-backed notes 30,344 29,422 Interest expense - other debt 8,239 12,360 Amortization of intangibles 506 818 Restructuring and impairment charges 3,913 868 Debt conversion expense (2) 17,789 - Impairment of goodwill - 63,210 Credit for estimated hurricane insurance losses - (1,600) 269,126 340,521 Income (loss) from continuing operations before income tax expense 47,701 (15,574) Income tax expense (3) (19,266) (13,824) Income (loss) from continuing operations 28,435 (29,398) Discontinued operations, net of income taxes (4) 7,429 (43,999) Net income (loss) $ 35,864 $ (73,397) Basic income (loss) per share: Income (loss) from continuing operations $ 0.60 $ (0.75) Discontinued operations 0.15 (1.13) Net income (loss) $ 0.75 $ (1.88) Weighted average number of shares outstanding 47,736,741 38,982,151 Diluted income (loss) per share: Income (loss) from continuing operations $ 0.55 $ (0.75) Discontinued operations 0.14 (1.13) Net income (loss) $ 0.69 $ (1.88) Weighted average number of diluted securities (5) 52,464,828 38,982,151 (1) The 2006 amount includes $23.4 million related to the settlement of an insurance claim for a water intrusion incident at Mine No. 5 that occurred in May 2005. (2) Inducement costs paid related to the conversion of Senior Subordinated Convertible Notes into common stock. (3) In 2006, a tax benefit has not been provided for $17.8 million of non-deductible debt conversion expense. In 2005, a tax benefit of only $0.5 million has been provided for the $63.2 million goodwill impairment charge, which is largely non-deductible. (4) The 2006 and 2005 amounts primarily represent the results of operations of the Company's Water Products business which was spun-off in December 2006. (5) Weighted average basic shares outstanding was used in the 2005 quarter period, as the use of fully diluted shares would have had an anti-dilutive effect. WALTER INDUSTRIES, INC. AND SUBSIDIARIES RESULTS BY OPERATING SEGMENT ($ in Thousands) Unaudited For the three months ended December 31, ---------------------------- 2006 2005 ------------ ------------ NET SALES AND REVENUES: Natural Resources $ 152,996 $ 170,253 Sloss 30,422 33,115 Natural Resources and Sloss 183,418 203,368 Financing 53,126 54,836 Homebuilding 78,420 65,006 Financing and Homebuilding Group 131,546 119,842 Other 4,865 3,708 Consolidating Eliminations (3,002) (1,971) $ 316,827 $ 324,947 OPERATING INCOME (LOSS): Natural Resources $ 63,675 $ 51,694 Sloss 2,541 4,172 Natural Resources and Sloss 66,216 55,866 Financing 13,411 16,696 Homebuilding (1) (5,367) (70,884) Financing and Homebuilding Group 8,044 (54,188) Other (530) (4,212) Consolidating Eliminations (1) (680) Operating income 73,729 (3,214) Other debt interest and conversion expense (26,028) (12,360) Income from continuing operations before income tax expense $ 47,701 $ (15,574) (1) Operating income includes a $3.4 million property impairment charge and a $63.2 million goodwill impairment charge in 2006 and 2005, respectively. WALTER INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS ($ in Thousands) Unaudited For the years ended December 31, --------------------------- 2006 2005 ------------ ------------ Net sales and revenues: Net sales $ 1,046,711 $ 908,697 Interest income on instalment notes 199,659 206,582 Miscellaneous (1) 63,486 22,763 1,309,856 1,138,042 Cost and expenses: Cost of sales (exclusive of depreciation) 703,539 632,811 Depreciation 39,017 31,976 Selling, general and administrative 149,762 154,526 Provision for losses on instalment notes 9,062 10,724 Postretirement benefits 13,537 14,401 Interest expense - mortgage- backed/asset-backed notes 118,743 122,005 Interest expense - other debt 38,014 23,400 Amortization of intangibles 2,405 3,641 Restructuring and impairment charges 5,048 235 Debt conversion expense (2) 19,370 - Impairment of goodwill - 63,210 Provision (credit) for estimated hurricane insurance losses (1,046) 10,044 1,097,451 1,066,973 Income from continuing operations before income tax expense and minority interest 212,405 71,069 Income tax expense (3) (67,821) (36,718) Income from continuing operations before minority interest 144,584 34,351 Minority interest in net loss of affiliates (1,000) - Income from continuing operations 145,584 34,351 Discontinued operations, net of income taxes (4) 52,785 (27,305) Net income $ 198,369 $ 7,046 Basic income per share: Income from continuing operations $ 3.31 $ 0.89 Discontinued operations 1.20 (0.71) Net income $ 4.51 $ 0.18 Weighted average number of shares outstanding 44,029,837 38,484,675 Diluted income per share: Income from continuing operations $ 2.86 $ 0.78 Discontinued operations 1.01 (0.55) Net income $ 3.87 $ 0.23 Weighted average number of diluted securities 52,077,356 49,209,176 (1) The 2006 amount includes $23.4 million related to the settlement of an insurance claim for a water intrusion incident at Mine No. 5 that occurred in May 2005. (2) Inducement costs paid related to the conversion of Senior Subordinated Convertible Notes into common stock. (3) In 2006, a tax benefit has not been provided for $19.4 million of non-deductible debt conversion expense. In 2005, a tax benefit of only $0.5 million has been provided for the $63.2 million goodwill impairment charge, which is largely non-deductible. (4) The 2006 and 2005 amounts primarily represent the results of operations of the Company's Water Products business which was spun-off in December 2006. Also in 2006, the Company wrote down the receivable resulting from the 2003 sale of its AIMCOR subsidiary to net realizable value. WALTER INDUSTRIES, INC. AND SUBSIDIARIES RESULTS BY OPERATING SEGMENT ($ in Thousands) Unaudited For the years ended December 31, --------------------------- 2006 2005 ------------ ------------ NET SALES AND REVENUES: Natural Resources $ 679,580 $ 548,577 Sloss 133,033 129,035 Natural Resources and Sloss 812,613 677,612 Financing 219,551 229,156 Homebuilding 275,841 226,796 Financing and Homebuilding Group 495,392 455,952 Other 15,087 12,354 Consolidating Eliminations (13,236) (7,876) $ 1,309,856 $ 1,138,042 OPERATING INCOME (LOSS): Natural Resources $ 246,345 $ 164,103 Sloss 8,071 11,442 Natural Resources and Sloss 254,416 175,545 Financing 53,987 46,019 Homebuilding (1) (22,115) (103,881) Financing and Homebuilding Group 31,872 (57,862) Other (15,852) (20,500) Consolidating Eliminations (647) (2,714) Operating income 269,789 94,469 Other debt interest and conversion expense (57,384) (23,400) Income from continuing operations before income tax expense and minority interest $ 212,405 $ 71,069 (1) Operating income includes a $3.4 million property impairment charge and a $63.2 million goodwill impairment charge in 2006 and 2005, respectively. WALTER INDUSTRIES, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION Unaudited
For the three months For the years ended December 31, ended December 31, --------------------------- --------------------------- 2006 2005 2006 2005 ------------ ------------ ------------ ------------ Operating Data: Jim Walter Resources Tons sold by type (in thousands): Metallurgical coal, contracts 1,068 1,218 5,234 4,356 Metallurgical coal, spot sales - - - 144 Purchased metallurgical coal 28 - 84 - Steam coal - 273 300 1,404 1,096 1,491 5,618 5,904 Average sale price per ton: Metallurgical coal, contracts $ 101.59 $ 113.59 $ 107.45 $ 96.56 Metallurgical coal, spot sales $ - $ - $ - $ 113.08 Steam coal $ - $ 34.84 $ 35.02 $ 35.02 Total $ 101.59 $ 99.18 $ 103.58 $ 82.33 Tons sold by mine (in thousands): Mine No. 4 362 754 2,224 2,961 Mine No. 7 532 578 2,506 2,139 Mine No. 5 174 159 804 804 1,068 1,491 5,534 5,904 Coal cost of sales (exclusive of depreciation): Mine No. 4 per ton $ 60.34 $ 47.40 $ 59.89 $ 40.29 Mine No. 7 per ton $ 54.36 $ 73.20 $ 53.68 $ 56.08 Mine No. 5 per ton $ 67.94 $ 66.59 $ 70.56 $ 53.64 Total $ 58.60 $ 59.46 $ 58.62 $ 47.83 Idle mine costs ($ in thousands) (1) $ 667 $ 5,763 $ 1,249 $ 21,896 Other costs ($ in thousands) (2) $ 3,452 $ 4,590 $ 17,802 $ 8,581 Tons of coal produced (in thousands) Mine No. 4 648 695 2,187 3,039 Mine No. 7 577 245 2,558 2,039 Mine No. 5 152 162 806 657 1,377 1,102 5,551 5,735 Coal production costs per ton: (3) Mine No. 4 $ 39.89 $ 36.07 $ 45.14 $ 31.71 Mine No. 7 $ 43.75 $ 90.04 $ 40.12 $ 43.77 Mine No. 5 $ 58.95 $ 56.07 $ 56.64 $ 53.27 Total $ 43.61 $ 51.00 $ 44.50 $ 38.47 Natural gas sales, in mmcf (in thousands) 1,933 1,696 7,712 6,937 Natural gas average sale price per mmcf $ 8.44 $ 10.54 $ 8.67 $ 7.95 Natural gas cost of sales per mmcf $ 2.54 $ 3.65 $ 2.69 $ 2.89
(1) Idle mine costs are charged to period expense when incurred. (2) Consists of charges (credits) not directly allocable to a specific mine and cost related to purchased coal. (3) Coal production costs per ton are a component of inventoriable costs, including depreciation. Other costs of sales not included in coal production costs per ton include Company-paid outbound freight, postretirement benefits, asset retirement obligation expenses, royalties and Black Lung excise taxes. WALTER INDUSTRIES, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATION Unaudited
For the three months For the years ended December 31, ended December 31, --------------------------- --------------------------- 2006 2005 2006 2005 ------------ ------------ ------------ ------------ Operating Data (continued): Sloss Industries Furnace and foundry coke tons sold 93,559 106,681 399,321 398,537 Furnace and foundry coke average sale price per ton $ 221.36 $ 221.92 $ 222.04 $ 225.13 Fiber tons sold 22,899 19,496 101,012 85,661 Fiber price per ton $ 266.38 $ 239.52 $ 264.47 $ 240.24 Financing Delinquencies 4.4% 5.2% 4.4% 5.2% Prepayment speeds 9.9% 10.5% 10.0% 10.7% Homebuilding New sales contracts 698 807 3,049 4,042 Cancellations 130 274 646 843 Unit completions 789 865 3,047 3,022 Average sale price $ 97,700 $ 75,000 $ 90,000 $ 74,700 Ending homes backlog 1,534 2,178 1,534 2,178 Depreciation ($ in thousands): Natural Resources $ 7,455 $ 5,504 $ 27,004 $ 20,855 Sloss 896 908 3,623 3,859 Financing 356 347 1,387 1,403 Homebuilding 1,405 1,321 5,385 4,966 Other 420 234 1,618 893 $ 10,532 $ 8,314 $ 39,017 $ 31,976 Restructuring and impairment charges (credits) ($ in thousands): Mine No. 5 shutdown costs $ - $ 15 $ - $ (618) Mine No. 7 longwall shield impairment - 853 - 853 Sloss chemical business asset impairment 504 - 1,639 - Homebuilding goodwill impairment - 63,210 - 63,210 Homebuilding property impairment 3,409 - 3,409 - $ 3,913 $ 64,078 $ 5,048 $ 63,445 Capital expenditures ($ in thousands): Natural Resources $ 20,722 $ 29,913 $ 86,305 $ 94,301 Sloss 2,060 1,697 7,761 7,314 Financing 74 52 295 206 Homebuilding 1,481 3,054 5,669 8,921 Other 354 1,427 1,025 3,776 $ 24,691 $ 36,143 $ 101,055 $ 114,518
WALTER INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS ($ in Thousands) Unaudited December 31, --------------------------- 2006 2005 ------------ ------------ ASSETS Cash and cash equivalents $ 127,370 $ 64,436 Short-term investments, restricted 90,042 124,573 Instalment notes receivable, net of allowance of $13,011 and $12,489, respectively 1,779,697 1,693,922 Receivables, net 88,643 74,610 Inventories 108,871 122,146 Prepaid expenses 30,146 21,460 Property, plant and equipment, net 311,189 258,502 Other long-term assets 130,839 113,163 Identifiable intangibles, net 6,423 8,828 Goodwill 10,895 10,895 Assets of discontinued operations - 2,911,369 $ 2,684,115 $ 5,403,904 LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $ 62,706 $ 53,355 Accrued expenses 96,552 95,221 Deferred income taxes 3,379 - Debt: Mortgage-backed/asset-backed notes 1,736,706 1,727,329 Other debt 249,491 623,875 Accrued interest 17,053 20,397 Accumulated postretirement benefits obligation 330,241 225,241 Other long-term liabilities 186,079 182,664 Liabilities of discontinued operations - 2,187,206 Total liabilities 2,682,207 5,115,288 Stockholders' equity 1,908 288,616 $ 2,684,115 $ 5,403,904 WALTER INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2006 ($ in Thousands) Unaudited
Capital in Common Excess of Comprehensive Total Stock Par Value Income ------------ ------------ ------------ ------------- Balance at December 31, 2005 $ 288,616 $ 598 $ 1,210,751 Adjustment to initially apply SAB No. 108 5,069 Adjusted balance at December 31, 2005 $ 293,685 $ 598 $ 1,210,751 Comprehensive income: Net income 198,369 $ 198,369 Other comprehensive income, net of tax: Decrease in additional minimum pension liability 703 703 Cumulative foreign currency translation adjustment 1,053 1,053 Net unrealized gain on hedges 4,113 4,113 Comprehensive income $ 204,238 Adjustment to initially apply FASB Statement No. 158 (74,513) Sale of common stock 168,680 26 168,654 Stock issued upon conversion of convertible notes 176,108 98 176,010 Gain on sale of investment in Mueller Water Products, Inc. through initial public offering 132,048 125,088 Stock dividend for spin-off of Mueller Water Products, Inc. (919,933) (944,393) Stock issued upon exercise of stock options 4,735 6 4,729 Tax benefit on the exercise of stock options 8,310 8,310 Dividends paid, $0.16 per share (6,825) (6,825) Stock-based compensation 15,375 15,375 Balance at December 31, 2006 $ 1,908 $ 728 $ 757,699
WALTER INDUSTRIES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY AND COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31, 2006 ($ in Thousands) Unaudited
Accumulated Other Accumulated Treasury Comprehensive Deficit Stock Income (Loss) ------------ ------------ ------------- Balance at December 31, 2005 $ (602,002) $ (259,317) $ (61,414) Adjustment to initially apply SAB No. 108 5,069 Adjusted balance at December 31, 2005 $ (596,933) $ (259,317) $ (61,414) Comprehensive income: Net income 198,369 Other comprehensive income, net of tax: Decrease in additional minimum pension liability 703 Cumulative foreign currency translation adjustment 1,053 Net unrealized gain on hedges 4,113 Comprehensive income Adjustment to initially apply FASB Statement No. 158 (74,513) Sale of common stock Stock issued upon conversion of convertible notes Gain on sale of investment in Mueller Water Products, Inc. through initial public offering 6,960 Stock dividend for spin-off of Mueller Water Products, Inc. 24,460 Stock issued upon exercise of stock options Tax benefit on the exercise of stock options Dividends paid, $0.16 per share Stock-based compensation Balance at December 31, 2006 $ (398,564) $ (259,317) $ (98,638)
SOURCE Walter Industries, Inc. -0- 02/07/2007 /CONTACT: Investors, Mark H. Tubb, Vice President - Investor Relations, +1-813-871-4027, or mtubb@walterind.com, or Media, Michael A. Monahan, Director - Corporate Communications, +1-813-871-4132, or mmonahan@walterind.com, both of Walter Industries, Inc./ /Photo: NewsCom: 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/ (WLT)