FORM 11-K
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
(Mark One)
[X] ANNUAL REPORT PURSUANT TO SECTION 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1997
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934 [NO FEE REQUIRED]
For the transition period from __________ to __________
Commission file number: 0-7574
RHINELANDER PAPER COMPANY, INC.
HOURLY SAVINGS AND INVESTMENT PLAN
(Full title of the plan and the address of the plan, if different from
the issuer named below)
WAUSAU-MOSINEE PAPER CORPORATION
1244 KRONENWETTER DRIVE
MOSINEE, WI 54455-9099
(Name of issuer of the securities held pursuant to the plan
and the address of its principal executive office)
<PAGE>
RHINELANDER PAPER COMPANY, INC.
HOURLY SAVINGS AND INVESTMENT PLAN
Mosinee, Wisconsin
FINANCIAL STATEMENTS
AND SUPPLEMENTAL SCHEDULES
Year Ended December 31, 1997
-2-
<PAGE>
RHINELANDER PAPER COMPANY, INC.
HOURLY SAVINGS AND INVESTMENT PLAN
FINANCIAL STATEMENTS AND SUPPLEMENTAL SCHEDULES
Year Ended December 31, 1997
TABLE OF CONTENTS
PAGE
Independent Auditor's Report 4
Financial Statements:
Statements of Net Assets Available for Benefits 5 - 7
Statement of Changes in Net Assets Available for Benefits 8 - 12
Notes to Financial Statements 13 - 19
Supplemental Schedules:
Schedule 1 - Item 27a - Schedule of Assets Held for Investment
Purposes 21
Schedule 2 - Item 27d - Schedule of Reportable (5%) Transactions 22
-3-
<PAGE>
INDEPENDENT AUDITOR'S REPORT
Employee Benefits Committee of the
Wausau-Mosinee Paper Corporation
Mosinee, Wisconsin
We have audited the accompanying statements of net assets available for
benefits of the RHINELANDER PAPER COMPANY, INC. HOURLY SAVINGS AND INVESTMENT
PLAN (the "Plan") as of December 31, 1997 and 1996, and the related statement
of changes in net assets available for benefits for the year ended December
31, 1997. These financial statements are the responsibility of the Plan's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audit provides a reasonable basis
for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the
RHINELANDER PAPER COMPANY, INC. HOURLY SAVINGS AND INVESTMENT PLAN as of
December 31, 1997 and 1996, and changes in net assets available for benefits
for the year ended December 31, 1997 in conformity with generally accepted
accounting principles.
Our audit was conducted for the purpose of forming an opinion on the financial
statements taken as a whole. The supplemental schedules of assets held for
investment purposes and reportable transactions as of and for the year ended
December 31, 1997 are presented for the purpose of additional analysis and are
not a required part of the basic financial statements but are supplementary
information required by the Department of Labor's Rules and Regulations for
Reporting and Disclosure under the Employee Retirement Income Security Act of
1974. The supplemental schedules have been subjected to the auditing
procedures applied in the audit of the basic financial statements for the year
ended December 31, 1997, and, in our opinion, are fairly stated in all
material respects in relation to the basic financial statements taken as a
whole.
WIPFLI ULLRICH BERTELSON LLP
Wipfli Ullrich Bertelson LLP
June 19, 1998
Wausau, Wisconsin
-4-
<PAGE>
RHINELANDER PAPER COMPANY, INC.
HOURLY SAVINGS AND INVESTMENT PLAN
<TABLE>
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1997
<CAPTION>
WAUSAU-MOSINEE
TEMPLETON FIDELITY PAPER CORP NATIONWIDE NEUBERGER &
FOREIGN MAGELLAN COMMON STOCK INDEXED BERMAN LIM
FUND I FUND FUND FIXED OPTION MAT BOND TRST
<S> <C> <C> <C> <C> <C>
ASSETS:
Receivables:
Participant
contributions $ 2,158 $ 3,945 $ 1,558 $ 1,562 $ 13
Rollovers
Investments 172,242 369,165 167,125 122,005 3,630
Total assets 174,400 373,110 168,683 123,567 3,643
Net assets
available
for benefits $174,400 $373,110 $168,683 $123,567 $3,643
</TABLE>
<TABLE>
<CAPTION>
FIDELTY PHOENIX NEUBERGER & DREFUS JANUS
DREYFUS A PURITAN BALANCED BERMAN S & P 500 TWENTY
BONDS PLUS FUND FUND GUARDIAN TRST INDEX FUND FUND
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Receivables:
Participant
contributions $ 199 $ 884 $ 157 $ 4,528 $ 2,245 $ 1,950
Rollovers 703 527
Investments 8,550 73,377 4,500 329,004 77,017 85,274
Total assets 8,749 74,261 4,657 333,532 79,965 87,751
Net assets
available
for benefits $8,749 $74,261 $4,657 $333,532 $79,965 $87,751
</TABLE>
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1997
(CONTINUED)
<CAPTION>
JANUS NSAT SMALL WARBURG-PINCUS
WORLDWIDE COMPANY EMERGING PERSONAL PERSONAL
FUND FUND GROWTH FUND PORTFOLIO 1 PORTFOLIO 2
<S> <C> <C> <C> <C> <C>
ASSETS:
Receivables:
Participant
contributions $ 1,425 $ 68 $ 314 $ 48 $ 88
Rollovers 528
Investments 41,655 2,947 9,062 439 1,309
Total assets 43,608 3,015 9,376 487 1,397
Net assets
available
for benefits $43,608 $3,015 $9,376 $487 $1,397
</TABLE>
-5-
<PAGE>
<TABLE>
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
DECEMBER 31, 1997
(CONTINUED)
<CAPTION>
PERSONAL PERSONAL PERSONAL PERSONAL PARTICIPANT
PORTFOLIO 3 PORTFOLIO 4 PORTFOLIO 5 PORTFOLIO 6 LOANS TOTALS
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
Receivables:
Participant
contributions $ 58 $ 205 $ 441 $ 430 $ - $ 22,276
Rollovers 1,758
Investments 134 16,058 10,777 23,661 24,652 1,542,583
Total assets 192 16,263 11,218 24,091 24,652 1,566,617
Net assets
available
for benefits $ 192 $16,263 $11,218 $24,091 $24,652 $1,566,617
<FN>
See accompanying notes to financial statements
</TABLE>
-6-
<PAGE>
RHINELANDER PAPER COMPANY, INC.
HOURLY SAVINGS AND INVESTMENT PLAN
<TABLE>
STATEMENT OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 1996
<CAPTION>
TEMPLETON NEUBERGER MARSHALL FIDELITY
FOREIGN & BERMAN & ILSLEY GENERAL MAGELLAN
FUND I GUARDIAN FUND BALANCED FUND ACCOUNT FUND
<S> <C> <C> <C> <C> <C>
ASSETS:
Participant
contribution
receivable $ 4,745 $ 5,976 $ 2,001 $ 3,626 $ 7,398
Investments 76,731 111,935 34,688 60,714 136,672
Total assets 81,476 117,911 36,689 64,340 144,070
Net assets
available
for benefits $81,476 $117,911 $36,689 $64,340 $144,070
</TABLE>
<TABLE>
<CAPTION>
WAUSAU-MOSINEE
PAPER CORP
COMMON STOCK PARTICIPANT
FUND LOANS TOTALS
<S> <C> <C> <C>
ASSETS:
Participant contribution
receivable $ 5,221 $ $ 28,967
Investments 87,199 1,100 509,039
Total assets 92,420 1,100 538,006
Net assets available
for benefits $92,420 $1,100 $538,006
<FN>
See accompanying notes to financial statements
</TABLE>
-7-
<PAGE>
RHINELANDER PAPER COMPANY, INC.
HOURLY SAVINGS AND INVESTMENT PLAN
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Year Ended December 31, 1997
<CAPTION>
TEMPLETON NEUBERGER MARSHALL FIDELITY
FOREIGN & BERMAN & ILSLEY GENERAL MAGELLAN
FUND I GUARDIAN FUND BALANCED FUND ACCOUNT FUND
<S> <C> <C> <C> <C> <C>
ADDITIONS:
Participant deferral
contributions $135,485 $177,988 $ 45,110 $ 86,658 $205,168
Participant rollover
contributions 5,735 2,766 1,779 5,531
Investment income 5,868 54,666 6,963 6,000 57,907
Transfers from
other funds
Total additions 147,088 235,420 53,852 92,658 268,606
DEDUCTIONS:
Employee benefits
and withdrawals 1,579 6,021 772
Investment loss
Administrative
expenses 71 114 24 99
Transfers to
other funds 52,514 347,196 90,517 156,998 38,695
Total deductions 54,164 353,331 90,541 156,998 39,566
Net additions
(deductions) 92,924 (117,911) (36,689) (64,340) 229,040
Net assets available for
benefits at beginning 81,476 117,911 36,689 64,340 144,070
Net assets available for
benefits at end $174,400 $ - $ - $ - $373,110
</TABLE>
-8-
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
WAUSAU-MOSINEE
PAPER CORP NATIONWIDE NEUBERGER & FIDELITY
COMMON STOCK INDEXED BERMAN LIM DREYFUS A PURITAN
FUND FIXED OPTION MAT BOND TRST BONDS PLUS FUND
<S> <C> <C> <C> <C> <C>
ADDITIONS:
Participant deferral
contributions $111,506 $ 16,480 $ 285 $1,259 $ 9,084
Participant rollover
contributions 202
Investment income 14,598 1,309 40 113 1,191
Transfers from
other funds 106,225 3,318 7,377 63,986
Total additions 126,306 124,014 3,643 8,749 74,261
DEDUCTIONS:
Employee benefits
and withdrawals 4,124 447
Investment loss
Administrative
expenses 3
Transfers to
other funds 45,916
Total deductions 50,043 447 - - -
Net additions
(deductions) 76,263 123,567 3,643 8,749 74,261
Net assets available for
benefits at beginning 92,420 - - - -
Net assets available for
benefits at end $168,683 $123,567 $3,643 $8,749 $74,261
</TABLE>
-9-
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
PHOENIX NEUBERGER & DREYFUS
BALANCED BERMAN S & P 500
FUND GUARDIAN TRST INDEX FUND
<S> <C> <C> <C>
ADDITIONS:
Participant deferral
contributions $2,127 $ 47,895 $22,867
Participant rollover
contributions 703
Investment income 708
Transfers from
other funds 2,535 319,261 55,687
Total additions 4,662 367,156 79,965
DEDUCTIONS:
Employee benefits
and withdrawals 497
Investment loss 5 33,066
Administrative
expenses 61
Transfers to
other funds
Total deductions 5 33,624 -
Net additions
(deductions) 4,657 333,532 79,965
Net assets available for
benefits at beginning - - -
Net assets available for
benefits at end $4,657 $333,532 $79,965
</TABLE>
-10-
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
JANUS JANUS NSAT SMALL WARBURG-PINCUS
TWENTY WORLDWIDE COMPANY EMERGING PERSONAL PERSONAL
FUND FUND FUND GROWTH FUND PORTFOLIO 1 PORTFOLIO 2
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Participant deferral
contributions $19,940 $14,016 $ 628 $ 3,441 $483 $1,377
Participant rollover
contributions 528 528
Investment income 4 20
Transfers from
other funds 69,682 30,495 2,593 7,284
Total additions 90,150 45,039 3,221 10,725 487 1,397
DEDUCTIONS:
Employee benefits
and withdrawals
Investment loss 2,396 1,431 206 1,349
Administrative
expenses 3
Transfers to
other funds
Total deductions 2,399 1,431 206 1,349 - -
Net additions
(deductions) 87,751 43,608 3,015 9,376 487 1,397
Net assets available
for benefits at
beginning - - - - - -
Net assets available
for benefits at end $87,751 $43,608 $3,015 $9,376 $487 $1,397
</TABLE>
-11-
<PAGE>
STATEMENT OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
YEAR ENDED DECEMBER 31, 1997
(CONTINUED)
<TABLE>
<CAPTION>
PERSONAL PERSONAL PERSONAL PERSONAL PARTICIPANT
PORTFOLIO 3 PORTFOLIO 4 PORTFOLIO 5 PORTFOLIO 6 LOANS TOTALS
<S> <C> <C> <C> <C> <C> <C>
ADDITIONS:
Participant deferral
contributions $288 $ 3,455 $ 3,213 $ 5,515 $ - $ 914,268
Participant rollover 17,772
contributions
Investment income 2 320 149,709
Transfers from
other funds 12,953 8,148 19,158 23,232 731,934
Total additions 290 16,408 11,361 24,673 23,552 1,813,683
DEDUCTIONS:
Employee benefits
and withdrawals 13,440
Investment loss 145 143 582 39,323
Administrative
expenses 375
Transfers to
other funds 98 731,934
Total deductions 98 145 143 582 0 785,072
Net additions
(deductions) 192 16,263 11,218 24,091 23,552 1,028,611
Net assets available
for benefits at
beginning - - - - 1,100 538,006
Net assets available
for benefits at end $192 $16,263 $11,218 $24,091 $24,652 $1,566,617
</TABLE>
-12-
<PAGE>
RHINELANDER PAPER COMPANY, INC.
HOURLY SAVINGS AND INVESTMENT PLAN
NOTES TO FINANCIAL STATEMENTS
NOTE 1 - DESCRIPTION OF PLAN AND FUNDING POLICY
The following description of the Rhinelander Paper Company, Inc. Hourly
Savings and Investment Plan (the "Plan") provides only general information.
Participants should refer to the Plan agreement for a more complete
description of the Plan's provisions.
GENERAL
The Plan was established on April 1, 1996. It is a defined contribution plan
covering all regular full-time hourly employees of Rhinelander Paper Company,
Inc. (the "Company") who are members of the collective bargaining units
represented by United Paperworkers International Union Local 15 and 1778 AFL-
CIO. An employee becomes eligible to participate in the Plan on the first day
of the first month coinciding with or next following the 60th full working day
of employment. The Plan is subject to the provisions of the Employee
Retirement Income Security Act of 1974 (ERISA).
CONTRIBUTIONS
Participants are allowed to contribute up to 16 percent of their gross annual
compensation, as defined in the Plan document. The Company currently does not
match any portion of participant deferral contributions. Contributions are
subject to certain limitations.
The Plan allows participants to roll over distributions from another company's
retirement plan. Participants may deposit any portion of a distribution that
has not been taxed, provided that the deposit is made within 60 days of
distribution. These deposits are not subject to the contribution limitations
under the Internal Revenue Code (IRC). The Company does not match these
contributions.
VESTING
Participants are fully vested in their entire account balance which includes
salary deferral and rollover contributions plus earning/losses thereon.
A participant may withdraw any portion of their account balance for any reason
after they reach age 59 1/2 or at any age if they demonstrate financial
hardship. Financial hardship withdrawals are subject to government regulation
and may be subject to a 10 percent penalty.
INVESTMENT OPTIONS
The Plan allows participants to select their investment options from one or
more of the following choices:
COMPANY STOCK
Funds are invested exclusively in the common stock of Wausau-Mosinee Paper
Corporation and are not considered to be a diversified investment option. The
fund seeks long-term capital growth, with current income and growth of income
as secondary objective.
-13-
<PAGE>
NOTE 1 - DESCRIPTION OF PLAN AND FUNDING POLICY (CONTINUED)
INVESTMENT OPTIONS (CONTINUED)
<bullet> Wausau-Mosinee Paper Corporation Common Stock Fund
INTERNATIONAL/GLOBAL FUNDS
Funds are invested primarily in diversified equity securities and debt
obligations of companies and governments outside the United States. The funds
seek long-term capital appreciation.
<bullet> Templeton Foreign Fund I
<bullet> Janus Worldwide Fund
AGGRESSIVE GROWTH FUNDS
Funds are invested in diversified equity securities of small-to-medium sized
companies in the United States with emerging or renewed growth potential. The
funds seek long-term capital appreciation.
<bullet> Nationwide Separate Account Trust (NSAT) Small Company Fund
<bullet> Warburg Pincus Emerging Growth Fund
GROWTH FUNDS
Funds are invested in diversified equity securities of small, medium, and
large companies to have better-than-average prospects for appreciation. The
funds seek long-term capital appreciation.
<bullet> Fidelity Magellan Fund
<bullet> Janus Twenty Fund
GROWTH AND INCOME FUNDS
Funds are invested in a portfolio of common stocks, securities convertible to
common stocks, and income-producing equity securities. The funds seek long-
term total return and potential for capital appreciation with current income
provided by dividends as a secondary objective.
<bullet> Dreyfus S & P 500 Index Fund
<bullet> Neuberger & Berman Guardian Fund
<bullet> Neuberger & Berman Guardian Trust
BALANCED/ASSET ALLOCATION FUNDS
Funds are invested in common stocks for growth potential, high-quality
government and corporate bonds to generate income, and short-term money market
instruments to help balance volatility. The funds seek to
-14-
NOTE 1 - DESCRIPTION OF PLAN AND FUNDING POLICY (CONTINUED)
INVESTMENT OPTIONS (CONTINUED)
maximize investment returns consistent with reasonable safety of
principal by investing in a mix of asset classes noted above.
<PAGE>
<bullet> Fidelity Puritan Fund
<bullet> Marshall & Ilsley Balanced Fund
<bullet> Phoenix Balanced Fund
INCOME FUNDS
Funds are invested in a diversified group of high quality debt securities with
varying maturities. The funds seek the maximum amount of current income to
the extent consistent with the preservation of capital and the maintenance of
liquidity.
<bullet> Dreyfus A Bonds Plus
<bullet> Neuberger & Berman Limited Maturity Bond Trust
GUARANTEED RETURN CONTRACT
Funds are invested primarily in investment grade bonds and mortgage backed
securities. The funds guarantee a stated rate of return on a quarterly basis
that is indexed to the Treasury Note yield.
<bullet> General Account
<bullet> Nationwide Indexed Fixed Option
LIFESTYLE FUNDS
Funds are managed by a group of subadvisers who manage a portion of each
fund's portfolio. Each of the six lifestyle funds vary from conservative -
short-term (Personal Portfolio 1) to aggressive - long-term (Personal
Portfolio 6) investment styles.
<bullet> Personal Portfolios 1 - 6
Participants may change their investment elections for current account balance
and future employee deferrals as often as they would like.
PARTICIPANT LOANS
Participants may borrow from their fund accounts. Loan transactions are
treated as a transfer to (from) the investment fund from (to) the Participant
Loans fund. Loan terms range from one to five years or longer if for the
purchase of a primary residence. Loans may not exceed the lesser of 50
percent of the participant's account balance or $50,000, and are secured by
the balance in the participant's account. The loans bear
-15-
NOTE 1 - DESCRIPTION OF PLAN AND FUNDING POLICY (CONTINUED)
INVESTMENT OPTIONS (CONTINUED)
interest at a rate commensurate with local prevailing rates as determined
from time to time by the Company's employee benefits committee. Interest
rates on existing loans range from 10.25 percent to 10.5 percent. Principal
and interest are paid ratably through payroll deductions. Upon termination
of employment, outstanding balances become due and payable to the Plan.
<PAGE>
PAYMENT OF BENEFITS
On termination of service due to death, disability, or retirement, the
participant's account is payable to the participant, or a named beneficiary,
based on the participant's elected payment method. The payment options
available are lump-sum, periodic payment, or nontransferable annuity.
EXPENSES OF THE PLAN
Administrative expenses charged by Pension Associates of Wausau, Inc., and all
other expenses incurred in conjunction with the Plan are paid by the Company.
Investment advisory and management fees are offset against earnings. Loan
fees are charged directly to the participant's account against the investment
option for which the loan was originally charged.
PLAN TERMINATION
The Company intends to continue the Plan indefinitely, but reserves the right
to terminate the Plan at any time. In the event of termination, the account
of each participant is nonforfeitable. The account will be held under the
Plan and continue to accrue investment earnings until all benefits have been
distributed according to the terms of the Plan.
NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF ACCOUNTING
The accompanying financial statements of the Plan are presented on the accrual
basis of accounting in accordance with generally accepted accounting
principles.
USE OF ESTIMATES IN PREPARATION OF FINANCIAL STATEMENTS
The preparation of financial statements in conformity with generally accepted
accounting principles requires the plan administrator to make estimates and
assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results may differ from those estimates.
-16-
INVESTMENT VALUATION
The Plan's various mutual fund and common stock investments are carried at
current value which represents the quoted market values of the underlying
investments on the last business day of the plan year including current income
and investment expenses. Investments in the Nationwide Indexed Fixed Option
and General Account are stated at contract amount which approximates fair
value. Loans are stated at estimated fair value and are deemed collectible.
Securities transactions are accounted for on the trade-date basis (the date
the order to buy or sell is executed).
Gains or losses on security transactions are recorded as the difference
between proceeds received and the carrying value of the investments. Interest
income is recognized on the accrual method, and dividend income is recorded on
the ex-dividend date.
<PAGE>
Investment income/loss on the statement of changes in net assets available for
benefits includes unrealized appreciation or depreciation, realized gains and
losses, interest, and dividends. Specific detail of investment income/loss is
not available from the trustee.
PAYMENT OF BENEFITS
Benefit payments to participants are recorded upon distribution.
NOTE 3 - INVESTMENTS
<TABLE>
The following represents a summary of the market value of investments at
December 31, 1997 and 1996. Investments that individually represent 5 percent
or more of the Plan's net assets available for benefits are separately
identified.
<CAPTION>
ASSET MARKET VALUE
1997 1996
Investments at Fair Value as
DETERMINED BY QUOTED MARKET PRICE
<S> <C> <C>
Wausau-Mosinee Paper Corporation common stock $167,125 $ 87,199
Common/collective trust - Marshall & Ilsley Balanced
Fund 34,688
Pooled separate accounts:
Templeton Foreign Fund I 172,242 76,731
Fidelity Magellan Fund 369,165 136,672
Neuberger & Berman Guardian Trust 329,004
Janus Twenty Fund 85,274
Other 273,116
1,228,801 213,403
Registered investment company - Neuberger & Berman
Guardian Fund 111,935
INVESTMENTS AT ESTIMATED FAIR VALUE
Participant loans 24,652 1,100
</TABLE>
-17-
NOTE 3 - INVESTMENTS (CONTINUED)
<TABLE>
<CAPTION>
ASSET MARKET VALUE
1997 1996
INVESTMENTS AT CONTRACT VALUE
<S> <C> <C>
Investment contracts between financial institutions:
Nationwide Indexed Fixed Option $ 122,005 $
General Account 60,714
122,005 60,714
Total investments $1,542,583 $509,039
</TABLE>
<PAGE>
<TABLE>
During 1997 and 1996, the Plan's investments (including investments bought,
sold, and held during the year) appreciated (depreciated) in value as follows:
<CAPTION>
NET CHANGE IN FAIR VALUE
1997 1996
Investments at Fair Value as
DETERMINED BY QUOTED MARKET PRICE
<S> <C> <C>
Wausau-Mosinee Paper Corporation common stock $ 14,598 $ (4,378)
Common/collective trust 6,963 1,441
Pooled separate accounts 26,530 13,868
Registered investment company 54,666 10,305
102,757 21,236
INVESTMENTS AT ESTIMATED FAIR VALUE
Participant loans 320 16
INVESTMENTS AT CONTRACT VALUE
Investment contracts between financial institutions 7,309 1,609
Net change in fair value $110,386 $ 22,861
</TABLE>
-18-
NOTE 4 - RECONCILIATION OF FINANCIAL STATEMENTS TO FORM 5500
<TABLE>
The following is a reconciliation of net assets available for benefits at
December 31, 1997 and 1996 to Form 5500. Reconciling differences exist since
the financial statements are prepared on the accrual basis of accounting and
the Form 5500 is prepared on a modified cash basis.
<CAPTION>
1997 1996
<S> <C> <C>
Net assets available for benefits $ 1,566,617 $ 538,006
Less - Receivable for participant contributions 22,276 28,967
Less - Receivables for rollovers 1,758
Net assets available for benefits - Form 5500 $ 1,542,583 $ 509,039
</TABLE>
NOTE 5 - TAX-EXEMPT STATUS OF THE PLAN
The Plan has not received a determination letter from the Internal Revenue
Service (IRS) as of the audit date. The plan administrator and Plan's tax
counsel believe the Plan is currently designed and being operated in
compliance with the applicable requirements of the IRC. They also believe the
Plan will obtain its qualification and tax-exempt status by the IRS in a
determination letter in the near future. Therefore, they believe that the
Plan was qualified and the related trust was tax-exempt as of the financial
statement date.
NOTE 6 - NOTICE OF AVAILABILITY
The complete annual report of the Rhinelander Paper Company, Inc. Hourly
Savings and Investment Plan is available upon request for a reasonable charge
and is also available for examination at the Plan administrator's office
located in Mosinee, Wisconsin during normal business hours.
-19-
<PAGE>
SUPPLEMENTAL SCHEDULES
-20-
<PAGE>
RHINELANDER PAPER COMPANY, INC.
HOURLY SAVINGS AND INVESTMENT PLAN
PLAN'S EIN #39-1130910 PLAN #009
<TABLE>
<CAPTION>
SCHEDULE 1-ITEM 27A-SCHEDULE OF ASSETS HELD FOR INVESTMENT PURPOSES
DECEMBER 31, 1997
Description of Investment Including Maturity
Identity of Issue, Borrower Date, Rate of Interest, Collateral, Par or Current
Lessor, or Similar Party Maturity Value Cost Value
<S> <C> <C> <C>
Nationwide Life Insurance Company Pooled separate account-Templeton Foreign Fund I * $172,242
Nationwide Life Insurance Company Pooled separate account-Fidelity Magellan Fund * 369,165
Wausau-Mosinee Paper Corporation Common stock-Wausau-Mosinee Paper Corp Common
Stock Fund * 167,125
Nationwide Life Insurance Company Group annuity contract-Nationwide Indexed Fixed
Option 5.67% 122,005 122,005
Nationwide Life Insurance Company Pooled separate account-Neuberger & Berman Lim
Mat Bond Trst * 3,630
Nationwide Life Insurance Company Pooled separate account-Dreyfus A Bonds Plus * 8,550
Nationwide Life Insurance Company Pooled separate account-Fidelity Puritan Fund * 73,377
Nationwide Life Insurance Company Pooled separate account-Phoenix Balanced Fund * 4,500
Nationwide Life Insurance Company Pooled separate account-Neuberger & Berman
Guardian Trust * 329,004
Nationwide Life Insurance Company Pooled separate account-Dreyfus S & P 500
Index Fund * 77,017
Nationwide Life Insurance Company Pooled separate account-Janus Twenty Fund * 85,274
Nationwide Life Insurance Company Pooled separate account-Janus Worldwide Fund * 41,655
Nationwide Life Insurance Company Pooled separate account-NSAT Small Company Trust * 2,947
Nationwide Life Insurance Company Pooled separate account-Warburg-Pincus Emerging
Growth Fund * 9,062
Nationwide Life Insurance Company Pooled separate account-Personal Portfolio 1 * 439
Nationwide Life Insurance Company Pooled separate account-Personal Portfolio 2 * 1,309
Nationwide Life Insurance Company Pooled separate account-Personal Portfolio 3 * 134
Nationwide Life Insurance Company Pooled separate account-Personal Portfolio 4 * 16,058
Nationwide Life Insurance Company Pooled separate account-Personal Portfolio 5 * 10,777
Nationwide Life Insurance Company Pooled separate account-Personal Portfolio 6 * 23,661
Participant Loans Rate during year 10.25% - 10.50% 0 24,652
<FN>
* The mutual fund assets consists of pooled funds held by the custodian. The
custodian has stated that they cannot provide information regarding the
cost of the investments. There were no investment assets reportable as
acquired and disposed of during the year.
See Independent Auditor's Report
</TABLE>
-21-
<PAGE>
RHINELANDER PAPER COMPANY, INC.
HOURLY SAVINGS AND INVESTMENT PLAN
PLAN'S EIN #39-1130910 PLAN #009
<TABLE>
<CAPTION>
SCHEDULE 2-ITEM 27D-SCHEDULE OF REPORTABLE (5%) TRANSACTIONS
DECEMBER 31, 1997
Expense Current
Incurred Value
With Cost of Asset on Net
Identity of Description Purchase Selling Lease Trans- of Transaction Gain
Party Involved of Asset Price Price Rental action Asset Date or (Loss)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Nationwide Life Group annuity contract-
Insurance Company Nationwide Indexed $106,225 $N/A $N/A $N/A $106,225 $106,225 $N/A
Fixed Option
Nationwide Life Pooled separate account-
Insurance Company Fidelity Puritan Fund 63,986 N/A N/A N/A N/A 63,986 N/A
Nationwide Life Pooled separate account-
Insurance Company Neuberger & Berman
Guardian Trust 367,156 N/A N/A N/A N/A 367,156 N/A
Nationwide Life Pooled separate account-
Insurance Company Dreyfus S & P 500
Index Fund 55,688 N/A N/A N/A N/A 55,688 N/A
Nationwide Life Pooled separate account-
Insurance Company Fidelity Magellan Fund 210,699 38,711 N/A N/A N/A 249,410 N/A
Nationwide Life Pooled separate account-
Insurance Company Janus Twenty Fund 69,682 N/A N/A N/A N/A 69,682 N/A
Nationwide Life Pooled separate account-
Insurance Company Templeton Foreign Fund I
Foreign Fund I 141,220 52,605 N/A N/A N/A 193,825 N/A
Nationwide Life Pooled separate account-
Insurance Company Janus Worldwide Fund N/A 30,495 N/A N/A N/A 30,495 N/A
Wausau-Mosinee Common stock -
Paper Corporation Wausau-Mosinee Paper
Corp Common Stock
Fund 111,709 45,919 N/A N/A N/A 157,628 N/A
Neuberger & Registered investment
Berman company-Neuberger &
Management, Inc. Bermam Guardian Fund 180,754 347,242 N/A N/A N/A 527,996 N/A
Marshall & Ilsley Common/collective trust-
Corporation Marshall & Ilsley
Balanced Fund 46,890 90,563 N/A N/A N/A 137,453 N/A
Employers Life Group annuity contract
Insurance Company General Account
of Wausau 86,658 156,808 N/A N/A 243,466 243,466 N/A
<FN>
See Independent Auditor's Report
</TABLE>
-22-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
trustee has duly caused this annual report to be signed on its behalf by
the undersigned hereunto duly authorized.
RHINELANDER PAPER COMPANY, INC.
HOURLY SAVINGS AND INVESTMENT PLAN
DATE: June 29, 1998 LARRY A. BAKER
Larry A. Baker
Trustee
-23-
<PAGE>
EXHIBIT INDEX
TO
FORM 11-K
OF
RHINELANDER PAPER COMPANY, INC.
HOURLY SAVINGS AND INVESTMENT PLAN
FOR THE YEAR ENDED DECEMBER 31, 1997
Pursuant to Section 102(d) of Regulation S-T
(17 C.F.R. <section>232.102(d))
EXHIBIT 23 - Consents of Experts and Counsel
Consent of Independent Accountants
-24-
EXHIBIT (23)
CONSENT OF INDEPENDENT ACCOUNTANTS
We consent to the incorporation by reference in the Registration
Statement on Form S-8 of Wausau-Mosinee Paper Corporation relating to the
registration of 10,000 shares of its common stock, no par value, in
connection with the Rhinelander Paper Company, Inc. Hourly Savings and
Investment Plan (the "Plan") of our report dated June 19, 1998 appearing
in Plan's annual report on Form 11-K for the year ended December 31, 1997.
WIPFLI ULLRICH BERTELSON LLP
WIPFLI ULLRICH BERTELSON LLP
June 29, 1998
Wausau, Wisconsin
