SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
July 28, 1994
(Date of Report, date of earliest event reported)
VALHI, INC.
(Exact name of Registrant as specified in its charter)
Delaware 1-5467 87-0110150
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
5430 LBJ Freeway, Suite 1700, Dallas, TX 75240-2697
(Address of principal executive offices) (Zip Code)
(214) 233-1700
(Registrant's telephone number, including area code)
Not applicable
(Former name or address, if changed since last report)
Item 5: Other Events
On July 28, 1994, the Registrant issued the press release attached
hereto as Exhibit 99.1 which is incorporated herein by reference.
Item 7: Financial Statements, Pro Forma Financial Information
and Exhibits
(c) Exhibit
Item No. Exhibit Index
99.1 Press release dated July 28, 1994
issued by the Registrant
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 hereunto duly authorized.
VALHI, INC.
(Registrant)
By: /s/ Steven L. Watson
Steven L. Watson
Vice President & Secretary
Date: July 28, 1994
EXHIBIT 99.1
VALHI REPORTS IMPROVED EARNINGS
DALLAS, TEXAS . . July 28, 1994 . . Valhi, Inc. (NYSE:VHI) reported net
income of $3 million, or $.03 per share, for the second quarter of 1994, a $10
million improvement from the net loss of $7.1 million, or $.06 per share, in the
comparable 1993 period. Valhi's net income for the first six months of 1994 was
$2.3 million, or $.02 per share, almost $70 million better than the net loss of
$67.4 million, or $.59 per share, reported for the first half of 1993. Improved
results attributable to the Company's interest in NL Industries' (NYSE: NL)
chemicals operations were a major factor in the higher 1994 earnings.
Operating income increased 33% to $28.6 million in the second quarter on a
9% increase in sales to $211 million. For the first half of 1994, operating
income was up 24% to $47.2 million as sales increased 10% to $400 million. The
improvements in sales, earnings and margins were driven in large part by higher
volumes in the Company's refined sugar, forest products and hardware products
segments. Average sugar prices during the first half of 1994 were comparable to
first half 1993 averages, while earnings of the Company's forest products
segment were enhanced by higher average selling prices for its principal
product, medium density fiberboard. In the fast food segment, results
comparable to last year were achieved despite a slightly lower average number of
stores.
NL's chemicals operations improved through higher European pricing for
titanium dioxide pigments, higher sales volume and lower operating costs. NL
has reported that it expects to benefit from recently announced price increases
in the second half of 1994.
Lower average debt levels and lower interest rates resulted in reduced
interest expense, while lower securities earnings resulted primarily from a
decline in the market value of fixed-income investments early in the year.
As previously announced, the Company has agreed to sell its sugar business
to an agricultural cooperative of sugarbeet growers for $325 million cash. The
transaction is subject to financing and other conditions and there can be no
assurance that it will be consummated.
Valhi, Inc., headquartered in Dallas, Texas, is engaged in the refined
sugar, forest products, hardware products and fast food industries as well as
the chemicals and titanium metals industries through its interests in NL and
Tremont.
* * * * *
VALHI, INC. AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED OPERATIONS
(UNAUDITED)
(IN MILLIONS, EXCEPT PER SHARE DATA)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1993 1994 1993 1994
<S> <C> <C> <C> <C>
Net sales $193.5 $210.8 $ 364.8 $399.7
Operating income $ 21.5 $ 28.6 $ 38.0 $ 47.2
General corporate and other:
Securities earnings 1.4 1.0 4.0 1.1
Expenses and other, net (3.8) (3.6) (5.9) (6.0)
Interest expense (9.8) (8.8) (21.8) (17.8)
9.3 17.2 14.3 24.5
Equity in losses of affiliates (19.1) (13.3) (114.7) (20.9)
Income (loss) before taxes (9.8) 3.9 (100.4) 3.6
Income tax benefit (expense) 2.7 (.9) 33.0 (1.3)
Net income (loss) $ (7.1) $ 3.0 $ (67.4) $ 2.3
Net income (loss) per common share $ (.06) $ .03 $ (.59) $ .02
Weighted average common shares
outstanding 114.1 114.3 114.1 114.3
</TABLE>
VALHI, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(UNAUDITED)
(IN MILLIONS)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
1993 1994 1993 1994
<S> <C> <C> <C> <C>
Net sales
Refined sugar $106.3 $112.3 $ 197.5 $216.5
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
$193.5 $210.8 $ 364.8 $399.7
Operating income
Refined sugar $ 8.1 $ 9.7 $ 14.2 $ 16.5
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
$ 21.5 $ 28.6 $ 38.0 $ 47.2
Equity in losses of affiliates
NL Industries, Inc. $(16.0) $ (9.9) $ (25.5) $(15.3)
Tremont Corporation (3.1) (3.4) (5.2) (5.6)
(19.1) (13.3) (30.7) (20.9)
Provision for market value
impairment of NL stock - - (84.0) -
$(19.1) $(13.3) $(114.7) $(20.9)
</TABLE>
VALHI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN MILLIONS)
<TABLE>
<CAPTION>
December 31, June 30,
1993 1994
(Unaudited)
<S> <C> <C>
Current assets $394.4 $287.4
Noncurrent marketable securities 108.8 112.1
Investment in NL and Tremont 74.9 60.4
Timber and timberlands 51.9 53.6
Other noncurrent assets 70.6 71.2
Property and equipment 203.3 225.7
$903.9 $810.4
Current liabilities $364.8 $253.4
Long-term debt 302.5 317.0
Other noncurrent liabilities 29.1 28.8
Stockholders' equity 207.5 211.2
$903.9 $810.4
Common shares outstanding 114.3 114.3
</TABLE>
