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) April 21, 1994
JAMES RIVER CORPORATION OF VIRGINIA
(Exact name of registrant as specified in its charter)
Virginia
(State or other jurisdiction of incorporation)
1-7911 54-0848173
(Commission File Number) (IRS Employer Identification Number)
120 Tredegar Street, Richmond, Virginia 23219
(Address of principal executive offices, including zip code)
Registrant's telephone number, including area code (804) 644-5411
<PAGE>
Item 5. Other Events.
On April 21, 1994, James River Corporation of Virginia ("James
River" or the "Company") published a press release announcing the
Company's results of operations for the first quarter ended March 27,
1994. The Company published its condensed consolidated balance sheets
as of March 27, 1994 and March 28, 1993, its consolidated statements of
operations for the quarters (13 weeks) ended March 27, 1994 and March
28, 1993, its condensed consolidated statements of cash flows for the
quarters (13 weeks) ended March 27, 1994 and March 28, 1993, and certain
segment information for the quarter ended March 27, 1994 and the year
ended December 26, 1993. A copy of the press release which includes the
consolidated financial statements is filed herewith as Exhibit 99.
Item 7.
(c) Exhibits
99. Press release dated April 21, 1994, published by the
registrant.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of
1934, the registrant has duly caused this report to be signed on its
behalf by the undersigned hereunto duly authorized.
JAMES RIVER CORPORATION of Virginia
By:/s/Michael J. Allan
Michael J. Allan
Vice President, Treasurer
Date: April 25, 1994
EXHIBIT 99
News Release: Immediate
Contact: Celeste Gunter
(804) 649-4307
RICHMOND, VIRGINIA, April 21, 1994 -- James River Corporation
today reported results for its first quarter which ended March 27,
1994. Net sales for the quarter were $1.1 billion, equivalent to
the prior year's first quarter. The company reported a net loss of
$7.1 million, representing a 30% improvement over the loss of $10.1
million reported in the first quarter of 1993. On a per share
basis after preferred dividends, losses were $0.19 per share in
1994's first quarter compared to losses of $0.22 per share in the
prior year.
Income from operations totalled $20.3 million in the first
quarter of 1994, a 15% improvement over the prior year's first
quarter, despite the severe winter weather conditions, reduced
sales from the California earthquake, and depressed paper and board
prices, which hampered many of the company's operations. Results
for the Consumer Products Business increased by over 20%, to $28.3
million from $23.2 million, principally from strong retail volume
and the benefits realized from productivity improvements.
Operating results for the Food and Consumer Packaging Business
increased 14%, to $26.6 million in 1994 from $23.3 million in 1993.
In the Communications Papers Business, operating losses increased
24%, to $25.1 million from $20.3 million last year, as pricing in
most white paper grades continued to decline due to additional
industry capacity and substantially higher levels of imports.
In commenting on operating results, Robert C. Williams,
Chairman and Chief Executive Officer of James River noted, "We are
encouraged by the strong relative results of our Consumer Products
and Food and Consumer Packaging Businesses, that were achieved in
what are still difficult markets. These businesses have built
better value into their brands and product lines while reducing
costs. Similar efforts in Communications Papers have been
insufficient to offset higher wood costs in the Northwest and
severe price erosion in printing and business papers."
During the first quarter, the company continued to implement
its restructuring and cost reduction programs. In March, James
River sold its 50% interest in Coastal Paper Company, a
Mississippi-based producer of lightweight papers. Staffing
reductions of approximately 200 employees were also realized during
the quarter, bringing total staffing reductions to over 2,400
during the past year.
During the quarter, the company announced the nomination of
Anne M. Whittemore, a Partner with the law firm of McGuire, Woods,
Battle & Boothe and a former Chairman of the Federal Reserve Bank
of Richmond, to the Board of Directors. James River also announced
that Richard H. Catlett, Jr., one of the company's founding
Directors, William S. Woodside, who joined the Board in 1982, and
W. J. Bowen, a Director since 1986, will be retiring in April, at
the end of their current terms.
Looking ahead, Mr. Williams concluded, "We are encouraged by
the recent pricing strength in market pulp which should lead to
improved pricing in many of James River's product lines and
improved margins relative to less integrated competitors. While
the profitability of our white papers business will likely remain
under pressure for the near term, the company's recently announced
price increases for uncoated free sheet, if sustained, will reduce
the losses. In the meantime, the company is continuing its basic
strategy to increase value and reduce cost, while managing capital
spending to generate free cash flow during 1994."
<PAGE>
CONSOLIDATED STATEMENTS OF OPERATIONS
James River Corporation of Virginia and Subsidiaries
For the Quarters (13 Weeks) Ended
March 27, 1994 and March 28, 1993
(in thousands, except per share amounts)
1994 1993
Net sales $1,105,503 $1,113,625
Cost of goods sold 934,866 934,720
Selling and administrative expenses 150,332 161,251
Income from operations 20,305 17,654
Interest expense 34,957 39,185
Other income, net 2,591 4,189
Loss before income taxes (12,061) (17,342)
Income tax benefit (4,975) (7,212)
Net loss $ (7,086) $ (10,130)
Preferred dividend requirements (8,202) (8,208)
Net loss applicable to common
shares $ (15,288) $ (18,338)
Net loss per common share and
common share equivalent $(.19) $(.22)
Weighted average number of
common shares and common share
equivalents -- fully diluted 81,866 81,745
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<TABLE>
SEGMENT INFORMATION
James River Corporation of Virginia and Subsidiaries
(in thousands)
<CAPTION>
First Second Third Fourth
Quarter Quarter Quarter Quarter Year
<S> <C> <C> <C> <C> <C>
1994 Net sales:
Consumer products $ 557,224
Food and consumer packaging 375,737
Communications papers 215,044
Intersegment elimination (42,502)
Total net sales $1,105,503
1993 Net sales:
Consumer products $ 558,805 $ 615,932 $ 603,038 $ 580,361 $2,358,136
Food and consumer packaging 387,395 389,340 397,546 394,173 1,568,454
Communications papers 215,912 237,718 225,323 222,373 901,326
Intersegment elimination (48,487) (44,856) (42,400) (41,978) (177,721)
Total net sales $1,113,625 $1,198,134 $1,183,507 $1,154,929 $4,650,195
1994 Operating profit (loss):
Consumer products $28,316
Food and consumer packaging 26,633
Communications papers (25,059)
General corporate expenses (9,585)
Income from operations $20,305
1993 Operating profit (loss):
Consumer products $23,190 $33,885 $33,572 $20,639 $111,286
Food and consumer packaging 23,309 29,676 22,335 28,507 103,827
Communications papers (20,281) (12,297) (6,389) (19,433) (58,400)
General corporate expenses (8,564) (9,076) (14,035) (11,015) (42,690)
Income from operations $17,654 $42,188 $35,483 $18,698 $114,023
</TABLE>
<PAGE>
CONSOLIDATED BALANCE SHEETS
James River Corporation of Virginia and Subsidiaries
(in thousands)
March 27, March 28,
1994 1993
ASSETS
Current assets:
Cash and short-term securities $ 24,569 $ 391,746
Accounts receivable 410,092 413,066
Inventories 707,322 697,982
Prepaid expenses 22,259 23,760
Deferred income taxes 80,885 99,941
Net assets held for sale 61,688 64,083
Total current assets 1,306,815 1,690,578
Net property, plant, and equipment 3,540,715 3,481,459
Investments in affiliates 527,065 574,162
Other assets 314,381 339,266
Goodwill 152,136 156,850
$5,841,112 $6,242,315
LIABILITIES AND CAPITAL
Current liabilities:
Accounts payable and accrued
liabilities $ 617,867 $ 609,928
Income taxes payable 4,597 5,478
Current portion of long-term debt 79,383 285,005
Accrued restructuring liability 50,321 113,488
Total current liabilities 752,168 1,013,899
Long-term debt 1,999,668 2,037,950
Accrued postretirement benefits
other than pensions 548,173 521,820
Other long-term liabilities 192,103 169,326
Deferred income taxes 418,162 424,573
Redeemable and non-redeemable
preferred stock 454,048 454,288
Common stock, shares outstanding
1994--81,631 and 1993--81,579 8,163 8,158
Additional paid-in capital 1,219,089 1,217,875
Retained earnings 249,538 394,426
$5,841,112 $6,242,315
<PAGE>
CONSOLIDATED STATEMENTS OF CASH FLOWS
James River Corporation of Virginia and Subsidiaries
For the Quarters (13 Weeks) Ended
March 27, 1994 and March 28, 1993
(in thousands)
1994 1993
Operating activities:
Net loss $(7,086) $(10,130)
Depreciation expense and cost of
timber harvested 88,474 88,375
Deferred income tax benefit (6,885) (8,762)
Undistributed losses of
unconsolidated affiliates 382 4,388
Retirement benefit expense in
excess of funding 10,160 11,284
Change in current assets and
liabilities:
Accounts receivable 12,913 1,094
Inventories (41,553) (11,192)
Other current assets (508) 13,521
Current liabilities (6,020) 1,996
Other, net 2,453 1,254
Cash provided by operating
activities 52,330 91,828
Investing activities:
Expenditures for property, plant,
and equipment (65,335) (62,957)
Cash received from sale of assets 5,268 2,798
Investments in affiliates (12,108) (59)
Proceeds received from redemption
of SCI preferred stock 47,050
Other, net 1,880 2,172
Cash used for investing activities (70,295) (10,996)
Financing activities:
Additions to long-term debt 58,413 132,688
Payments of long-term debt (18,992) (176,785)
Dividends paid and other, net (20,507) (20,481)
Cash provided by (used for)
financing activities 18,914 (64,578)
Increase in cash and short-term
securities $ 949 $16,254
