BALANCE SHEETS (Unaudited) Boise Cascade Corporation and Subsidiaries
June 30 December 31
ASSETS 1994 1993 1993
(expressed in thousands)
CURRENT
Cash and cash items $ 26,744 $ 27,092 $ 14,860
Short-term investments at cost, which approximates market 6,295 5,972 7,569
33,039 33,064 22,429
Receivables, less allowances of $1,881,000, $1,635,000, and $1,264,000 419,792 358,513 366,187
Inventories 414,267 395,040 446,609
Deferred income tax benefits 41,079 46,855 38,831
Other 19,363 13,669 13,397
927,540 847,141 887,453
PROPERTY
Property and equipment
Land and land improvements 51,437 57,403 56,871
Buildings and improvements 597,046 567,230 571,712
Machinery and equipment 4,785,748 4,554,664 4,642,434
5,434,231 5,179,297 5,271,017
Accumulated depreciation (2,380,111) (2,154,556) (2,261,360)
3,054,120 3,024,741 3,009,657
Timber, timberlands, and timber deposits 405,702 383,432 366,054
3,459,822 3,408,173 3,375,711
OTHER ASSETS 305,591 248,194 249,809
TOTAL ASSETS $4,692,953 $4,503,508 $4,512,973
LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT
Notes payable $ 194,645 $ 50,516 $ 31,000
Current portion of long-term debt 67,974 51,377 145,185
Accounts payable 304,572 280,576 288,300
Accrued liabilities
Compensation and benefits 106,879 107,287 103,188
Interest payable 36,715 32,637 32,194
Other 101,211 84,937 88,568
811,996 607,330 688,435
DEBT
Long-term debt, less current portion 1,768,147 1,729,230 1,593,348
Guarantee of ESOP debt 245,027 261,695 246,856
2,013,174 1,990,925 1,840,204
OTHER
Deferred income taxes 181,572 255,893 222,464
Other long-term liabilities 269,847 237,793 257,346
451,419 493,686 479,810
SHAREHOLDERS' EQUITY
Preferred stock -- no par value; 10,000,000 shares authorized;
Series D ESOP: $.01 stated value; 6,352,708, 6,439,007, and
6,395,047 shares outstanding 285,872 289,755 287,777
Deferred ESOP benefit (245,027) (261,695) (246,856)
Series E: $.01 stated value; 862,500 shares outstanding in each period 191,466 191,471 191,466
Series F: $.01 stated value; 115,000 shares outstanding in each period 111,043 111,151 111,043
Series G: $.01 stated value; 862,500 shares outstanding after Sept. 1993 176,404 -- 176,404
Common stock -- $2.50 par value; 200,000,000 shares authorized;
38,037,816, 37,953,929, and 37,987,529 shares outstanding 95,095 94,885 94,969
Retained earnings 801,511 986,000 889,721
Total shareholders' equity 1,416,364 1,411,567 1,504,524
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $4,692,953 $4,503,508 $4,512,973
SHAREHOLDERS' EQUITY PER COMMON SHARE $23.57 $28.48 $25.92
STATEMENTS OF LOSS (Unaudited) Boise Cascade Corporation and Subsidiaries
Three Months Ended June 30 Six Months Ended June 30
1994 1993 1994 1993
(expressed in thousands)
REVENUES
Sales $1,075,360 $ 973,990 $2,089,460 $1,958,030
Other income, net 770 3,920 7,650 14,830
1,076,130 977,910 2,097,110 1,972,860
COSTS AND EXPENSES
Materials, labor, and other operating expenses 902,190 833,880 1,800,180 1,661,150
Depreciation and cost of company timber harvested 66,660 63,510 133,630 131,990
Selling and administrative expenses 101,290 80,700 186,140 161,000
1,070,140 978,090 2,119,950 1,954,140
INCOME (LOSS) FROM OPERATIONS 5,990 (180) (22,840) 18,720
Interest expense (38,620) (36,840) (75,030) (75,030)
Interest income 440 350 1,610 740
Foreign exchange gain 260 940 1,660 320
(37,920) (35,550) (71,760) (73,970)
LOSS BEFORE INCOME TAXES (31,930) (35,730) (94,600) (55,250)
Income tax benefit (12,770) (18,600) (37,840) (26,020)
NET LOSS $ (19,160) $ (17,130) $ (56,760) $ (29,230)
NET LOSS PER COMMON SHARE
Primary $(.86) $(.72) $(2.21) $(1.28)
Fully diluted $(.86) $(.72) $(2.21) $(1.28)
The computation of fully diluted net loss per common share was
antidilutive in each of the periods presented; therefore, the
amounts reported for primary and fully diluted loss are the same.
SEGMENT INFORMATION
SEGMENT SALES
Paper and paper products $ 478,799 $ 482,696 $ 951,378 $ 952,744
Office products 212,342 162,126 403,268 331,092
Building products 432,623 370,484 827,432 752,086
Intersegment eliminations and other (48,404) (41,316) (92,618) (77,892)
$1,075,360 $ 973,990 $2,089,460 $1,958,030
SEGMENT OPERATING INCOME (LOSS)
Paper and paper products $ (35,865) $ (32,211) $ (105,586) $ (75,788)
Office products 10,052 9,694 20,997 19,534
Building products 43,904 33,504 78,938 95,927
Corporate and other (12,101) (11,167) (17,189) (20,953)
INCOME (LOSS) FROM OPERATIONS $ 5,990 $ (180) $ (22,840) $ 18,720
STATEMENTS OF CASH FLOWS (Unaudited) Boise Cascade Corporation and Subsidiaries
Six Months Ended June 30
1994 1993
(expressed in thousands)
CASH PROVIDED BY (USED FOR) OPERATIONS
Net loss $ (56,760) $ (29,230)
Items in loss not using (providing) cash
Depreciation and cost of company timber harvested 133,630 131,990
Deferred income tax benefit (38,292) (27,279)
Amortization and other 2,558 4,995
Receivables (31,245) 8,197
Inventories 46,936 20,890
Accounts payable and accrued liabilities 16,647 4,436
Current and deferred income taxes 1,492 10,273
Other 3,200 (5,968)
Cash provided by operations 78,166 118,304
CASH PROVIDED BY (USED FOR) INVESTMENT
Expenditures for property and equipment (111,617) (96,911)
Expenditures for timber and timberlands (3,408) (3,024)
Purchases of facilities (84,444) --
Other (35,371) 12,828
Cash used for investment (234,840) (87,107)
CASH PROVIDED BY (USED FOR) FINANCING
Cash dividends paid
Common stock (11,403) (11,384)
Preferred stock (30,480) (20,386)
(41,883) (31,770)
Notes payable 143,645 46,516
Additions to long-term debt 197,299 50,000
Payments of long-term debt (130,391) (193,299)
Issuance of preferred stock -- 111,151
Other (1,386) (1,063)
Cash provided by (used for) financing 167,284 (18,465)
INCREASE IN CASH AND SHORT-TERM INVESTMENTS 10,610 12,732
BALANCE AT THE BEGINNING OF THE YEAR 22,429 20,332
BALANCE AT JUNE 30 $ 33,039 $ 33,064
NOTES TO FINANCIAL STATEMENTS
These statements are unaudited financial statements and
should be read in conjunction with the 1993 Annual Report
of the Company.
Effective as of January 1, 1993, the Company adopted new
Financial Accounting Standards Board requirements that govern
the way deferred taxes are calculated and reported. Adoption
of these requirements entailed a one-time adjustment that had
no effect on the Company's first quarter 1993 net loss.
In the second quarter of 1993, the Canadian federal government
reduced the statutory tax rate applicable to the Company. In
accordance with the requirements of the newly adopted
accounting standard, net Canadian deferred tax liabilities
were reduced to reflect these rate reductions. The resultant
benefit of $5,020,000, or 13 cents per fully diluted common
share, has been included in the caption "Income tax benefit"
on the Statements of Loss for the three and six months ended
June 30, 1993.
The estimated tax rate for the first six months of 1994, was
40 percent, compared with a rate of 38 percent, exclusive of
the impact of the adjustment to deferred taxes, for the same
period in the prior year. These rates were based on actual
year-to-date results and projected results for the remainder
of the year.
Early in the first quarter of 1993, the Company issued
$111,151,000, net of issuance costs, of 9.4 percent
nonconvertible Series F preferred stock.
During the first quarter of 1993, the Company sold its
interest in a specialty paper producer at a pretax gain of
$8,644,000, or 14 cents per fully diluted common share after
taxes.