SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)
November 12, 1998
Wolohan Lumber Co.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Michigan 0-6169 8-1746752
- ---------------------------- ------------ -------------------
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation) File Number) Identification No.)
1740 Midland Road, Saginaw, Michigan 48603
---------------------------------------------------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (517) 793-4532
<PAGE>
Item 7. Financial Statements and Exhibits
---------------------------------
(c) Exhibits
99. Press Release issued by Wolohan Lumber Co.
on November 12, 1998.
- 2 -
<PAGE>
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.
Wolohan Lumber Co.
By: /s/ David G. Honaman
----------------------------------
David G. Honaman
Vice President-Administration
and Chief Financial Officer
Dated: November 23, 1998
- 3 -
<PAGE>
Exhibit Index
Exhibit Number Exhibit Description
99. Press Release issued by Wolohan Lumber Co.
on November 12, 1998.
- 4 -
EXHIBIT 99
WOLOHAN LUMBER ANNOUNCES COMPANY RESTRUCTURE
SAGINAW, Mich., November 12 --- Wolohan Lumber Co. (Nasdaq: NNM:WLHN) today
announced certain restructuring steps. These actions will include divestiture
of three Wisconsin and three Illinois locations, closure and redeployment of
assets at five store locations in Illinois, consolidation of two stores into
one location in the Flint, Michigan market, and a reduction in corporate
office administrative staff. The Company also closed one location in Indiana
in October, 1998.
"The redeployment of these assets will allow us to focus on our core
businesses and accelerate attainment of our strategic objectives," said James
L. Wolohan, President and Chief Executive Officer. "The Company has a strong
balance sheet, with a very low debt ratio. Liquidation of these assets will
also provide additional financial capacity to acquire other operations which
fit our strategic focus, similar to Central Michigan Lumber Co., acquired on
June 29, 1998, and a solid profit contributor in the third quarter of 1998,"
Mr. Wolohan noted. "Future acquisitions will be concentrated in the
three-state region of Michigan, Ohio, and Indiana, and are expected to
include the addition of value-added operations such as truss and panel
plants, door-assembly facilities, and specialized delivery capabilities, all
of which support our strategic focus," said Mr. Wolohan.
Wolohan Lumber Co. uses a strategic profit model to evaluate operating
performance. The stores to be liquidated do not meet the strategic and
financial expectations. Accordingly, the Company believes that redeployment
of these assets will help achieve performance goals sooner.
The Company's fourth quarter results will include the financial impact of
asset liquidations, inventory adjustments, and the accrual of future fixed
costs and liabilities associated with the restructuring. The estimated
pre-tax net charge is $3.1 million (29 cents per share). (This release
includes forward-looking statements based on current management expectations
and estimates. Factors that could cause adjustments in actual results from
the expectations and estimates include general economic conditions,
particularly those affecting the building industry, and additional factors
described in the Company's reports filed with the Securities and Exchange
Commission.)
After giving effect to the store redeployment, the Company will have 50
operating units under the names of Wolohan Lumber Co. and Central Michigan
Lumber Co.
CONTACT: David G. Honaman - C.F.O.
Edward J. Dean - Corp. Controller
John A. Sieggreen - V.P. - Operations
(517) 793-4532
- 5 -
