EXHIBIT 99.1
VALCOR REPORTS HIGHER SECOND QUARTER EARNINGS
DALLAS, TEXAS . . July 28, 1994 . . Valcor, Inc.'s operating income for the
second quarter of 1994 increased 41% to $18.9 million on a 13% increase in sales
to $98 million. For the first six months of the year, operating income
increased 29% to $30.7 million and sales increased 10% to $183 million. The
improvements in sales, earnings and margins, driven by higher volumes in the
Company's forest products and hardware products segments, were also enhanced by
higher average selling prices for medium density fiberboard, the Company's
principal forest product. In the fast food segment, results comparable to the
1993 periods were achieved despite a slightly lower average number of stores.
The Company's higher operating earnings more than offset higher 1994
interest expense resulting from the Company's recapitalization during the last
half of 1993. The Company's net income increased 18% to $9.1 million for the
second quarter while net income of $13.3 million for the first six months of
1994 approximated that of the first half of last year.
Valcor, Inc., a wholly-owned subsidiary of Valhi, Inc. (NYSE:VHI), is
engaged through subsidiaries in the forest products, hardware products and fast
food industries. In connection with the registration of its 95/8% Senior Notes
Due 2003, Valcor files periodic reports with the Securities and Exchange
Commission.
* * * * *
VALCOR, INC.
SUMMARY OF CONSOLIDATED OPERATIONS
(UNAUDITED)
(IN MILLIONS)
Three months ended Six months ended
June 30, June 30,
1993 1994 1993 1994
Net sales
Forest products $43.9 $53.4 $ 83.5 $ 93.4
Hardware products 16.0 17.5 30.4 35.5
Fast food 27.3 27.6 53.4 54.3
$87.2 $98.5 $167.3 $183.2
Operating income
Forest products $ 7.4 $11.6 $ 12.8 $ 16.7
Hardware products 3.9 5.0 7.0 10.1
Fast food 2.1 2.3 4.0 3.9
Total operating income 13.4 18.9 23.8 30.7
Disposition of business unit - - .5 -
Interest expense (.9) (4.3) (1.9) (8.6)
Income before income taxes 12.5 14.6 22.4 22.1
Provision for income taxes 4.8 5.5 8.6 8.8
Net income $ 7.7 $ 9.1 $ 13.8 $ 13.3
VALCOR, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN MILLIONS)
December 31, June 30,
1993 1994
(Unaudited)
Current assets $ 70.6 $ 79.0
Timber and timberlands 51.9 53.6
Other noncurrent assets 33.2 34.0
Property and equipment 116.8 133.2
$272.5 $299.8
Current liabilities $ 46.7 $ 57.9
Long-term debt 185.7 189.2
Other noncurrent liabilities 26.2 27.4
Stockholder's equity 13.9 25.3
$272.5 $299.8
CONDENSED CONSOLIDATED CASH FLOW STATEMENTS
SIX MONTHS ENDED JUNE 30, 1993 AND 1994
(UNAUDITED)
(IN MILLIONS)
1993 1994
Cash provided by operating activities:
Before working capital changes $ 22.2 $ 22.7
Changes in assets and liabilities 1.5 .2
23.7 22.9
Cash provided (used) by investing and financing activities:
Capital expenditures (9.2) (25.9)
Net borrowings (repayments) (8.1) 10.2
Dividends (11.4) (1.5)
Other, net .9 (.1)
Net cash provided (used) $ (4.1) $ 5.6