UNITED STATES SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended October 1, 1994
OR
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 1-8712
BOWATER INCORPORATED
(Exact name of registrant as specified in its charter)
Delaware 62-0721803
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
55 East Camperdown Way, P.O. Box 1028, Greenville, SC 29602
(Address of principal executive offices) (Zip Code)
(803) 271-7733
(Registrant's telephone number, including area code)
(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 ISSUERS INVOLVED IN BANKRUPTCY PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Sections 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court. Yes No
APPLICABLE ONLY TO CORPORATE ISSUERS
Indicate the number of shares outstanding of each of the issuer's classes of
common stock, as of November 8, 1994.
Class Outstanding at November 8, 1994
Common Stock, $1.00 Par Value 36,691,492 Shares
BOWATER INCORPORATED
I N D E X
Page
Number
PART I FINANCIAL INFORMATION
1. Financial Statements:
Consolidated Balance Sheet at October 1, 1994
and December 31, 1993 3
Consolidated Statement of Operations for the
Three and Nine Months Ended October 1, 1994
and October 2, 1993 4
Consolidated Statement of Capital Accounts
for the Nine Months Ended October 1, 1994 5
Consolidated Statement of Cash Flows for the
Nine Months Ended October 1, 1994 and October 2,
1993 6
Notes to Consolidated Financial Statements 7-8
2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 9-13
PART II OTHER INFORMATION
1. Legal Proceedings 14
SIGNATURES 15
(2)
PART I
BOWATER INCORPORATED AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
(Unaudited)
(In Thousands)
October 1, December 31,
1994 1993
ASSETS
Current assets:
Cash $ 6,608 $ 16,258
Marketable securities, at cost which approximates market 227,654 65,408
Accounts receivable, net 190,022 170,737
Inventories 157,608 149,431
Deferred income taxes 10,923 10,923
Other current assets 6,065 6,720
Total current assets 598,880 419,477
Timber and timberlands 429,838 422,521
Fixed assets, net 1,798,044 1,750,719
Intangible assets 55,342 57,208
Other assets 76,762 76,253
$2,958,866 $2,726,178
LIABILITIES AND CAPITAL
Current liabilities:
Current instalments of long-term debt $ 1,797 $ 1,796
Accounts payable and accrued liabilities 307,753 195,546
Income taxes payable 12,189 35,882
Dividends payable 10,162 6,079
Total current liabilities 331,901 239,303
Long-term debt, net of current instalments 1,117,264 1,118,403
Other long-term liabilities 152,527 144,802
Deferred income taxes 259,532 272,065
Minority interests in subsidiaries 146,352 144,749
Commitments and contingencies (See note 4.)
Redeemable LIBOR preferred stock 74,461 74,368
Shareholders' equity:
Convertible preferred stock 111,333 --
Cumulative preferred stock 81,892 --
Common stock 37,107 36,913
Additional paid-in capital 336,704 332,661
Retained earnings 334,143 388,663
Equity adjustment from foreign currency translation (2,418) (1,351)
Loan to ESOT (10,040) (11,245)
Treasury stock, at cost (11,892) (13,153)
Total shareholders' equity 876,829 732,488
$2,958,866 $2,726,178
See accompanying notes to consolidated financial statements.
(3)
BOWATER INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF OPERATIONS
(Unaudited)
(In Thousands Except Per Share Amounts)
Three Months Ended Nine Months Ended
October 1, October 2, October 1, October 2,
1994 1993 1994 1993
Net sales $348,151 $335,673 $977,109 $1,013,296
Cost of sales 268,921 298,480 797,540 882,975
Depreciation, amortization and cost of timber harvested 41,166 39,915 124,398 121,802
Gross profit/(loss) 38,064 (2,722) 55,171 8,519
Selling and administrative expense 17,241 17,664 54,764 52,059
Operating income (loss) 20,823 (20,386) 407 (43,540)
Other expense (income):
Interest income (2,112) (386) (6,059) (3,423)
Interest expense, net of capitalized interest 24,619 24,649 74,222 73,584
Gain on sale of timberlands (27,389) (388) (27,979) (3,273)
Other, net (1,779) 3,727 (3,703) 3,972
(6,661) 27,602 36,481 70,860
Income (loss) before income taxes and minority interests 27,484 (47,988) (36,074) (114,400)
Provision for income taxes 8,003 (12,902) (15,512) (37,473)
Minority interests in net income (loss) of subsidiaries 8,955 (4,254) 5,233 (7,541)
Net income (loss) $ 10,526 $(30,832) $(25,795) $ (69,386)
Earnings (loss) per share $ 0.16 $ (0.86) $ (1.04) $ (1.96)
Average shares outstanding 36,971 36,389 36,527 36,352
See accompanying notes to consolidated financial statements.
(4)
BOWATER INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CAPITAL ACCOUNTS
Nine Months Ended October 1, 1994
(Unaudited)
(In Thousands Except Per Share Amounts)
Equity
LIBOR Convertible Cumulative Additional Adjustment-
Preferred Preferred Preferred Common Paid in Retained Foreign Loan to Treasury
Stock Stock Stock Stock Capital Earnings Currency ESOT Stock
Balance at December 31, 1993 $74,368 $-- $-- $36,913 $332,661 $388,663 $(1,351) $(11,245) $(13,153)
Net loss -- -- -- -- -- (25,795) -- -- --
Common stock dividends ($.45 per share) -- -- -- -- -- (16,330) -- -- --
Preferred stock dividends
Libor preferred ($1.31 per share) -- -- -- -- -- (1,965) -- -- --
Convertible preferred ($4.26 per share) -- -- -- -- -- (5,210) -- -- --
Cumulative preferred ($5.76 per share) -- -- -- -- -- (4,899) -- -- --
Increase in stated value of LIBOR
preferred stock 93 -- -- -- -- (93) -- -- --
Common stock issued under stock
option plans -- -- -- 194 4,043 -- -- -- --
Preferred stock issued, net of issuance costs -- 111,333 81,892 -- -- -- -- -- --
Reduction in loan to ESOT -- -- -- -- -- -- -- 1,205 --
Treasury stock used for employee
benefit and dividend reinvestment plans -- -- -- -- -- (228) -- -- 1,261
Foreign currency translation -- -- -- -- -- -- (1,067) -- --
Balance at October 1, 1994 $74,461 $111,333 $81,892 $37,107 $336,704 $334,143 $(2,418) $(10,040) $(11,892)
See accompanying notes to consolidated financial statements.
(5)
BOWATER INCORPORATED AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(In Thousands)
Nine Months Ended
October 1, October 2,
1994 1993
Cash flow from (used for) operating activities:
Operating income (loss) $ 407 $(43,540)
Depreciation, amortization and cost of timber harvested 124,398 121,802
Changes in working capital:
Receivables (19,285) (77,341)
Inventories (8,177) (3,132)
Accounts payable and accrued liabilities 5,011 (15,348)
Other working capital 656 5,294
Interest paid, net of capitalized interest (64,380) (66,581)
Income taxes refunded (paid) (20,786) 19,816
Other income, net 16,686 16,001
34,530 (43,029)
Cash flow from (used for) investing activities:
Cash invested in fixed assets, timber and
timberlands (81,870) (87,978)
Disposition of fixed assets, timber and timberlands 29,368 1,695
(52,502) (86,283)
Cash flow from (used for) financing activities:
Issuance of Series B & C preferred stock, net of issuance costs 193,225 --
Cash dividends, including minority interests (24,396) (28,768)
Net borrowings (payments) (1,203) (1,474)
Funds released from trustee -- 34,506
Other 2,942 (1,283)
170,568 2,981
Increase (decrease) in cash and marketable securities 152,596 (126,331)
Cash and marketable securities:
Beginning of year 81,666 165,942
End of period $234,262 $ 39,611
See accompanying notes to consolidated financial statements.
(6)
BOWATER INCORPORATED AND SUBSIDIARIES
Notes to Consolidated Financial Statements
1) The accompanying consolidated financial statements include the accounts of
Bowater Incorporated and Subsidiaries (the Company). The consolidated
balance sheet as of October 1, 1994 and the related consolidated
statements of operations, capital accounts and cash flows for the interim
periods ended October 1, 1994 and October 2, 1993 are unaudited. However,
in the opinion of Company management, all adjustments (consisting of
normal recurring adjustments) necessary for fair presentation of the
interim financial statements have been made. The results of the interim
period ended October 1, 1994 are not necessarily indicative of the results
to be expected for the full year.
2) The composition of inventories at October 1, 1994 and December 31, 1993
was as follows (in thousands):
October 1, 1994 December 31, 1993
(Unaudited)
At lower of cost or market:
Raw materials $ 32,223 $ 33,090
Work in process 2,677 2,697
Finished goods 50,888 41,070
Mill stores and other supplies 80,323 79,209
166,111 156,066
Excess of current cost over
LIFO inventory value (8,503) (6,635)
$157,608 $149,431
3) The Company's marketable securities are recorded at cost which
approximates market value. The securities are all investment grade with
maturities of fewer than 90 days and the Company has the intent and
ability to hold these securities until maturity.
4) During the third quarter of 1994, the recovery boiler project at the
Company's Calhoun, Tennessee, mill site met substantially all of the
acceptance tests as specified in the construction contract. Payment for
the turnkey contract portion of the new recovery boiler totaling
approximately $100.0 million is expected to be made during the fourth
quarter of 1994. This amount was recorded as a current liability in the
accompanying Consolidated Balance Sheet dated October 1, 1994.
The Company is also involved in various litigation relating to contracts,
commercial disputes, tax, environmental, workers' compensation and other
matters. The Company's management is of the opinion that the ultimate
disposition of these matters will not have a material adverse effect on
the Company's operations or its financial condition taken as a whole.
5) The calculation of earnings per share for the quarter ended October 1,
1994, and the calculation of loss per share for the nine months ended
October 1, 1994, include an adjustment for the dividend requirements of
the Company's LIBOR, Series B, and Series C preferred stock. The shares
of 7% Series B Convertible preferred stock are common stock equivalents.
However, the effect on both calculations is antidilutive.
(7)
BOWATER INCORPORATED AND SUBSIDIARIES
Notes to Consolidated Financial Statements
6) Total interest expense during the first nine months of 1994 and 1993 was
$74,409,000 and $75,550,000 respectively. In 1994 and 1993, $187,000 and
$1,966,000 of interest expense was capitalized, respectively.
7) During the first quarter of 1994, the Company completed two public
offerings of preferred stock. The Company sold 4,893,616 depositary
shares, priced at $23.50 per share, each representing one-fourth of a
share of 7% Series B Convertible Preferred Stock referred to as Preferred
Redeemable Increased Dividend Equity Securities (PRIDES). The conversion
premium is 22 percent. The Company also sold 3,400,000 depositary
shares, priced at $25.00 per share, each representing one-fourth of a
share of 8.40% Series C Cumulative Preferred Stock. The net proceeds of
both offerings, after deducting applicable issuance costs and expenses,
were $193,225,000.
8) In the first quarter of 1994, the Company changed its classification of
certain selling and administrative expenses and allocation of certain
costs due to the recent consolidation of the corporate office with
operations in Greenville, South Carolina. These changes are reflected in
the Consolidated Statement of Operations for the three month and nine
month periods ended October 1, 1994. Prior year amounts have not been
restated due to the prospective nature of the change. The comparable
amounts for the three month and nine month periods ended October 2, 1993
for the lines entitled "Cost of Goods Sold" and "Selling and
Administrative Expense" are $295,168,000 and $873,460,000, and $20,976,000
and $61,574,000, respectively.
(8)
BOWATER INCORPORATED AND SUBSIDIARIES
Management's Discussion and Analysis
of Financial Condition and Results of Operations
Summary
Net income for the third quarter of 1994 totaled $10.5 million, or $.16
per share, on net sales of $348.2 million. Included in net income for the
quarter was a $10.6 million gain after tax, or $.29 per share, realized on the
sale of 161,065 acres of non-strategic timberlands, primarily in Nova Scotia.
Without the gain, the Company would have had a net loss of $.13 per share for
the third quarter. During the first quarter of 1994, the Company completed
the public offering of 7% PRIDES Series B Convertible Preferred Stock (Series
B) and 8.40% Series C Cumulative Preferred Stock (Series C). Preferred
dividends relating to these issues decreased earnings per share by $.10 for
the third quarter of 1994. For the third quarter of 1993, the Company
incurred a loss of $30.8 million, or $.86 per share, on net sales of $335.7
million.
For the first nine months of 1994, the Company incurred a net loss of
$25.8 million, or $1.04 per share, on net sales of $977.1 million. Dividends
relating to the recently issued preferred stock increased the loss per share
by $.28 for the nine months ended October 1, 1994. This compares to a loss of
$69.4 million, or $1.96 per share, on net sales of $1.0 billion for the first
nine months of 1993.
Product Line Information:
Quarter Ended Nine Months Ended
October 1, October 2, October 1, October 2,
1994 1993 1994 1993
Net sales:
Newsprint $156,071 $153,556 $441,182 $459,546
Directory and uncoated
specialties 36,817 50,183 114,972 137,316
Coated paper 77,323 79,858 222,134 236,260
Pulp 38,631 17,711 93,066 70,774
Communication papers 46,818 46,583 135,756 145,926
Lumber, stumpage and
other products 23,799 23,773 67,102 71,961
Distribution costs (31,308) (35,991) (97,103) (108,487)
$348,151 $335,673 $977,109 $1,013,296
Operating income (loss) $ 20,823 $(20,386) $ 407 $ (43,540)
(9)
BOWATER INCORPORATED AND SUBSIDIARIES
Management's Discussion and Analysis
of Financial Condition and Results of Operations
Nine Months Ended October 1, 1994 versus October 2, 1993
For the first nine months of 1994, the Company's operating income of
$0.4 million improved $43.9 million compared to the first nine months of
1993. Operating results for market pulp as well as the Company's newsprint,
communication papers, and lumber product lines improved during this period,
offset by lower operating results for coated paper. In addition, the prior
year operating results included a $10.0 million charge for the restructuring
of Great Northern Paper Incorporated. Price increases in several of the
Company's paper grades coupled with cost reduction programs led to the
improved operating results. A detailed review of the Company's major product
lines follows.
The Company's market pulp operating results improved during the first
nine months of 1994 as average transaction prices increased 21.7 percent
compared to the first nine months of 1993. As of October 1, 1994, the
Company's average transaction prices increased 62.1 percent since the end of
1993. Major producers of southern softwood pulp increased their list
prices $230 per metric ton during the first nine months of 1994, and most
major producers have announced two additional price increases for southern
softwood pulp; $70 per metric ton effective in the fourth quarter of 1994,
and $60 per metric ton effective January 1, 1995. The long awaited economic
recovery now taking place in Europe and Japan has helped to increase demand
for paper and paper products which in turn has increased the need for market
pulp. NORSCAN (U.S., Canada, Finland, Norway, and Sweden) shipments of
softwood market pulp increased 9.6 percent during the first nine months of
1994 compared to the first nine months of 1993 while NORSCAN inventory levels
decreased. Many industry observers believe demand will continue to increase
in 1995. No assurance can be given, however, that future price increases
can be achieved.
The operating results from the Company's newsprint product line
improved during the first nine months of 1994 versus the first nine months of
1993 due to a decrease in operating costs. Average transaction prices declined
6.1 percent comparing the same periods. Since the beginning of 1994, the
Company announced and implemented two reductions in discounts allowed off
list price totaling 13 percent. As with market pulp, economic recovery
in many parts of Europe and Japan has increased the demand for newsprint.
In addition, U. S. consumption of daily newspapers increased 4.7 percent for
the first nine months of 1994 compared to the same period in 1993. A third
reduction in discounts allowed off list price of 7 percent, effective
December 1, 1994, has been announced by the Company. Price improvements
in the newsprint sector are dependent upon further increases in the rate of
newsprint consumption and the extent of economic recovery worldwide.
(10)
BOWATER INCORPORATED AND SUBSIDIARIES
Management's Discussion and Analysis
of Financial Condition and Results of Operations
Coated groundwood paper operating results decreased during the first
nine months of 1994 compared to the first nine months of 1993. Comparing
these periods, average transaction prices decreased 4.8 percent due to
competition from offshore imports. On July 1, 1994, the Company announced a
$50 per short ton reduction in discounts allowed off list price. On
October 1, 1994, the Company increased the list price of coated groundwood
paper by $70 per short ton. The full effect of these price adjustments are
not expected to be realized until 1995. During the first nine months of 1994,
advertising paging in magazines increased 5.0 percent compared to the same
period last year. In addition, many magazine/catalog publishers lowered
their inventories during the first nine months of 1994. Coated groundwood
producers expect demand to further increase in the fourth quarter of 1994 as
many catalog publishers will print spring catalogs early to avoid the
February, 1995, postal increase, while others will re-stock inventories.
Interest Expense
Total interest expense for the first nine months of 1994 was $74.4
million versus $75.6 million in the first nine months of 1993 due to the
slightly lower average level of borrowings outstanding during 1994. Comparing
the same periods, capitalized interest was $.2 million versus $2.0 million,
due to the lower level of qualifying capital expenditures in 1994.
Income Taxes
The Company provided an income tax benefit for the first nine months
of 1994 and 1993 due to the pre-tax loss incurred in both periods. The
effective tax rate for the first nine months of 1994 was 43.0 percent versus
32.8 percent in 1993. The disparity in tax rates was caused by a lower
Canadian capital gains tax rate applied to the sale of non-strategic
timberlands in Nova Scotia in the third quarter of 1994, and additional
deferred taxes recorded in the third quarter of 1993 due to the federal tax
rate increase from 34 percent to 35 percent.
During the first quarter of 1994, the Company paid $29.4 million to
the Internal Revenue Service for tax assessments relating to prior years.
This amount was fully provided for in the Consolidated Balance Sheet as of
December 31, 1993.
(11)
BOWATER INCORPORATED AND SUBSIDIARIES
Management's Discussion and Analysis
of Financial Condition and Results of Operations
Three Months Ended October 1, 1994 versus October 2, 1993
For the third quarter of 1994, the Company's operating income of $20.8
million improved $41.2 million compared to the third quarter of 1993.
Operating results for newsprint as well as market pulp, communication papers,
and lumber improved, offset by lower operating results in the Company's coated
paper product line. In addition, the prior year operating results included a
$10 million restructuring charge for Great Northern Paper Incorporated.
The Company's programs to reduce operating costs improved newsprint
operating results during the third quarter of 1994. Average transaction prices
comparing the third quarter of 1994 to the same period last year did not
change. U. S. consumption of daily newspapers increased 3.9 percent during the
third quarter of 1994, compared to the same period last year. Also during the
third quarter, the Company announced a 7 percent reduction in discounts
allowed off list price effective December 1, 1994.
The Company's market pulp operating results improved during the third
quarter of 1994 compared to the third quarter of 1993 as market pulp average
transaction prices increased 45.5 percent and the Company's tonnage shipments
increased 50.0 percent comparing these periods. During the third quarter,
major producers of southern softwood pulp increased their list price by $70 per
metric ton, taking advantage of the recent increases in demand caused by the
economic recovery evidenced in both the U. S. and abroad. Two additional price
increases for southern softwood pulp have been announced by major pulp
producers; a $70 per metric ton list price increase effective October 1, 1994,
and a $60 per metric ton list price increase effective January 1, 1995.
Coated paper operating results deteriorated during the third quarter of
1994, compared to the third quarter of 1993, as competition from imports put
downward pressure on pricing. The Company's average transaction prices
decreased 9.1 percent comparing the third quarter of 1994 to the same period
last year. U. S. shipments of coated groundwood paper in the third quarter of
1994 increased 13.1 percent compared to the third quarter of 1993. On October
1, 1994, the Company increased the list price of coated groundwood paper by
$70 per short ton.
Interest Expense
Total interest expense for the third quarter of 1994 was $24.7 million
versus $24.8 million for the third quarter of 1993. In 1994's third quarter,
$56,000 of interest was capitalized versus $0.2 million in 1993, due to the
lower level of qualifying capital expenditures in 1994.
(12)
BOWATER INCORPORATED AND SUBSIDIARIES
Management's Discussion and Analysis
of Financial Condition and Results of Operations
Income Taxes
The effective tax rate for the third quarter of 1994 was 29.1 percent
versus 26.9 percent for the third quarter of 1993. The disparity in tax rates
was caused by a lower Canadian capital gains tax rate applied to the sale of
non-strategic timberlands in Nova Scotia in the third quarter of 1994, and
additional deferred taxes recorded in the third quarter of 1993 due to the
federal tax rate increase from 34 percent to 35 percent.
Liquidity and Capital Resources
For the first nine months of 1994, the Company's operations generated
$34.5 million of cash compared to using $43.0 million of cash during the first
nine months of 1993, a $77.6 million improvement. In the first nine months of
1994, the Company's operating income was $43.9 million higher and working
capital improved by $68.7 million. The reason for the large improvement in
working capital was the decision made by the Company to discontinue selling
receivables under the asset securitization program during the first quarter of
1993. Offsetting the operating income and working capital improvements was an
increase in income taxes paid of $40.6 million. In the first quarter of 1993,
the Company received tax refunds of $19.7 million due to the loss incurred in
1992. During the first nine months of 1994, the Company paid $29.4 million for
tax assessments relating to prior years, offset by additional tax refunds of
$8.5 million due to the loss incurred in 1993.
Capital expenditures for the first nine months of 1994 decreased $6.1
million compared to the first nine months of 1993. The completion of the
newsprint recycling plant at the East Millinocket, Maine, mill and the
completion of the non-turnkey contract portion of the new recovery boiler at
the Calhoun, Tennessee, mill accounted for the reduced cash expenditures.
During the first quarter of 1994, the Company completed the public
offering of Series B and Series C Preferred Stock. The net proceeds of both
offerings, after deducting applicable issuance costs and expenses, were $193.2
million. The proceeds of the offerings are being used by the Company to fund:
the turnkey contract portion of the new recovery boiler at the Calhoun,
Tennessee, mill in the fourth quarter of 1994; capital expenditures and other
costs associated with the closure of certain obsolete facilities at the
Millinocket, Maine, mill; the costs associated with the previously announced
companywide personnel reductions and general corporate purposes.
As of October 1, 1994, the Company had $227.7 million of marketable
securities. The large increase from December 31, 1993, was a result of the two
preferred stock offerings completed during the first quarter of 1994 and the
sale of non-strategic timberlands in the third quarter of 1994. The marketable
securities are all investment grade with maturities of fewer than 90 days.
(13)
BOWATER INCORPORATED AND SUBSIDIARIES
PART II
OTHER INFORMATION
Item 1. Legal Proceedings.
In October 1994, the Company settled its lawsuit seeking
declaratory relief in its insurance coverage dispute with National Union
Fire Insurance Company ("National Union"). In the settlement, National
Union conceded its obligation, as first excess insurer, to cover $9.5
million of the Company's $10.5 million settlement in January 1994 of all
pending lawsuits relating to vehicular accidents occurring in December 1990
in fog on Highway I-75 in the general area of the Company's Calhoun,
Tennessee, mill. The remaining $1 million had already been covered by the
Company's primary insurer. Neither the underlying lawsuits nor the
insurance coverage dispute have had a material adverse effect on the
Company's results of operations, financial condition, or liquidity.
The Company is also involved in various litigation relating to
contracts, commercial disputes, taxes and other matters. The Company's
management is of the opinion that the ultimate disposition of these matters
will not have a material adverse effect on the Company's operations or its
financial condition taken as a whole.
(14)
BOWATER INCORPORATED AND SUBSIDIARIES
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.
BOWATER INCORPORATED
By R. C. Lancaster
R. C. Lancaster
Senior Vice President and
Chief Financial Officer
By M. F. Nocito
M. F. Nocito
Vice President - Controller
Dated: November 15, 1994
(15)