SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C. 20549
FORM 10-Q
(Mark One)
X Quarterly Report Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934 for the Quarterly Period
Ended July 2, 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 1-8634
Temple-Inland Inc.
(Exact name of registrant as specified in its charter)
Delaware 75-1903917
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
303 South Temple Drive, Diboll, Texas 75941
(Address of principal executive offices) (Zip Code)
(409) 829-2211
(Registrant's telephone number, including area code)
Not Applicable
(Former name, former address and former fiscal year,
if changed since last report.)
Indicate 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 the filing
requirements for the past 90 days.
Yes X No_____
Indicate the number of shares outstanding of each of the issuer's
classes of common stock, as of the latest practicable date:
Number of common shares outstanding
Class as of July 2, 1994
Common Stock (par
value $1.00 per share) 55,725,454
The Exhibit Index appears on page 19 of this report.
<PAGE>2
PART I. FINANCIAL INFORMATION
FINANCIAL STATEMENTS
Summarized Statements of Income
Parent Company (Temple-Inland Inc.)
Unaudited
Second Quarter First Six Months
1994 1993 1994 1993
(in millions)
Revenues
Net sales $ 573.5 $ 543.7 $ 1,115.3 $ 1,080.4
Financial services earnings 14.4 18.5 31.4 35.5
587.9 562.2 1,146.7 1,115.9
Costs and Expenses
Cost of sales 483.7 467.1 945.7 916.2
Selling and administrative 49.9 48.6 97.3 96.2
533.6 515.7 1,043.0 1,012.4
Operating Income 54.3 46.5 103.7 103.5
Interest - net ( 16.3) ( 17.7) ( 32.2) ( 35.2)
Other 1.1 1.1 1.3 1.6
Income Before Taxes and
Accounting Changes 39.1 29.9 72.8 69.9
Taxes on income 12.5 9.0 23.3 21.0
Income Before Accounting
Changes 26.6 20.9 49.5 48.9
Cumulative effect of
accounting changes - - - 50.0
Net Income $ 26.6 $ 20.9 $ 49.5 $ 98.9
See notes to consolidated financial statements.
<PAGE>3
Summarized Balance Sheets
Parent Company (Temple-Inland Inc.)
Unaudited
July 2, January 1,
1994 1994
(in millions)
ASSETS
Current Assets
Cash and cash equivalents $ 11.3 $ 8.6
Receivables, less allowances of
$7.9 million in 1994 and $7.4
million in 1993 244.2 198.5
Inventories:
Work in process and finished goods 78.7 77.7
Raw materials 181.7 180.4
260.4 258.1
Prepaid expenses 22.4 12.5
Total current assets 538.3 477.7
Investment in Financial Services 566.6 487.6
Property and Equipment
Buildings 383.8 376.3
Machinery and equipment 2,818.7 2,723.3
Less allowances for depreciation and
amortization (1,516.4) (1,437.0)
1,686.1 1,662.6
Construction in progress 395.2 238.7
2,081.3 1,901.3
Timber and timberlands--less depletion 426.1 411.0
Land 33.9 33.8
Total property and equipment 2,541.3 2,346.1
Other Assets 100.3 92.4
Total Assets $ 3,746.5 $ 3,403.8
See notes to consolidated financial statements.
<PAGE>4
Summarized Balance Sheets - Continued
Parent Company (Temple-Inland Inc.)
Unaudited
July 2, January 1,
1994 1994
(in millions)
LIABILITIES AND SHAREHOLDERS' EQUITY
Current Liabilities
Accounts payable and accrued expenses $ 300.8 $ 244.8
Federal income taxes payable - 43.9
Employee compensation and benefits 19.5 19.5
Short-term borrowings 3.0 3.3
Current portion of long-term debt 29.2 24.1
Total current liabilities 352.5 335.6
Long-Term Debt 1,317.0 1,044.8
Deferred Income Taxes 203.5 175.9
Postretirement Benefits 124.2 122.0
Other Liabilities 19.5 25.3
Shareholders' Equity 1,729.8 1,700.2
Total Liabilities and Shareholders' Equity $ 3,746.5 $ 3,403.8
See notes to consolidated financial statements.
<PAGE>5
Summarized Statements of Cash Flows
Parent Company (Temple-Inland Inc.)
Unaudited
First Six Months
1994 1993
(in millions)
Cash Provided by (Used for) Operations
Net income $ 49.5 $ 98.9
Adjustments to reconcile net income to net cash:
Cumulative effect of accounting changes - ( 50.0)
Depreciation and depletion 98.4 95.9
Deferred taxes 6.6 ( 3.2)
Unremitted earnings of affiliates ( 22.0) ( 26.2)
Receivables ( 46.2) ( 21.8)
Inventories ( 1.8) ( 7.2)
Prepaid expenses ( 9.9) ( 1.8)
Accounts payable and accrued expenses ( 22.7) ( 4.9)
Other ( 11.7) 5.9
40.2 85.6
Cash Provided by (Used for) Investments
Capital expenditures ( 226.0) ( 174.0)
Sale of property and equipment, net 3.2 3.0
Manufacturing acquisitions, net ( 64.1) -
Investment in Financial Services - 18.0
( 286.9) ( 153.0)
Cash Provided by (Used for) Financing
Change in debt 269.6 89.0
Construction funds held by trustee - 6.1
Issuance of common stock for stock plans 7.9 2.2
Purchase of stock for treasury ( .3) ( 1.3)
Cash dividends paid to shareholders ( 27.8) ( 27.6)
249.4 68.4
Net increase (decrease) in cash and
cash equivalents 2.7 1.0
Cash and cash equivalents at beginning
of period 8.6 7.1
Cash and cash equivalents at end of period $ 11.3 $ 8.1
See notes to consolidated financial statements.
<PAGE>6
Summarized Statements of Income
Temple-Inland Financial Services
Unaudited
Second Quarter First Six Months
1994 1993 1994 1993
(in millions)
Interest income
Mortgage-backed and investment
securities $ 47.3 $ 63.2 $ 96.0 $ 130.8
Loans receivable and mortgage loans
held for sale 55.3 40.8 110.7 77.5
Assisted assets 7.4 5.3 16.0 12.5
Other earning assets 6.0 12.5 20.8 18.5
Total interest income 116.0 121.8 243.5 239.3
Interest expense
Deposits 60.1 58.7 119.4 119.9
Borrowed funds 17.7 25.1 43.3 43.6
Total interest expense 77.8 83.8 162.7 163.5
Net interest income 38.2 38.0 80.8 75.8
Provision for loan losses .5 1.1 1.4 1.6
Net interest income after provision
for loan losses 37.7 36.9 79.4 74.2
Noninterest income
Loan servicing fees 7.6 6.8 15.4 13.7
Loan origination and marketing 5.0 12.1 12.9 19.2
Other 23.0 18.2 44.3 32.8
35.6 37.1 72.6 65.7
Noninterest expense
Compensation and benefits 28.2 28.1 58.7 51.2
Other 30.7 27.4 61.9 53.2
Total noninterest expense 58.9 55.5 120.6 104.4
Income before taxes and accounting
changes 14.4 18.5 31.4 35.5
Taxes on income 4.6 4.9 9.4 9.3
Income before accounting changes 9.8 13.6 22.0 26.2
Cumulative effect of accounting
changes - - - 52.3
Net income $ 9.8 $ 13.6 $ 22.0 $ 78.5
See notes to consolidated financial statements.
<PAGE>7
Summarized Balance Sheets
Temple-Inland Financial Services
Unaudited
June 30, December 31,
1994 1993
(in millions)
ASSETS
Cash and cash equivalents $ 677.8 $ 156.3
Mortgage loans held for sale 245.8 630.1
Mortgage-backed and investment
securities 4,167.3 4,407.3
Loans receivable 2,916.7 2,755.3
Covered assets 521.8 664.3
Other assets 455.1 520.0
TOTAL ASSETS $ 8,984.5 $ 9,133.3
LIABILITIES
Deposits $ 6,646.6 $ 6,362.3
Securities sold under repurchase
agreements 1,224.3 1,570.7
Federal Home Loan Bank advances 154.3 154.1
Other borrowings 60.8 76.2
Other liabilities 343.8 458.3
TOTAL LIABILITIES 8,429.8 8,621.6
SHAREHOLDER'S EQUITY 554.7 511.7
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 8,984.5 $ 9,133.3
See notes to consolidated financial statements.
<PAGE>8
Summarized Statements of Cash Flows
Temple-Inland Financial Services
Unaudited
First Six Months
1994 1993
(in millions)
Cash Provided by (Used for) Operations
Net income $ 22.0 $ 78.5
Adjustments to reconcile net income
to net cash:
Cumulative effect of accounting changes - ( 52.3)
Amortization, accretion and depreciation 8.8 11.2
Provision for loan losses 1.4 1.6
Receivable from FSLIC 39.1 ( 1.2)
Mortgage loans held for sale 384.3 ( 151.3)
Gain on sale of investments ( .4) ( .9)
Other ( 120.2) 130.9
335.0 16.5
Cash Provided by (Used for) Investments
Maturities of mortgage-backed and investment
securities 468.1 542.5
Purchase of mortgage-backed and investment
securities ( 235.3) ( 268.8)
Loans originated net of principal collected ( 58.7) ( 313.8)
Proceeds from sales of loans and mortgage-
backed securities .6 11.6
Reduction in covered assets 141.3 44.5
Savings bank acquisition 200.2 -
Other 9.3 ( 10.0)
525.5 6.0
Cash Provided by (Used for) Financing
Net decrease in deposits ( 47.1) ( 211.6)
Net increase (decrease) in securities sold
under repurchase agreements and short-term
borrowings ( 346.4) 604.5
Additions to long-term debt - 48.0
Payments of debt ( 15.5) ( 66.4)
Contributions from (dividend paid to) Parent - ( 18.0)
Other 70.0 35.2
( 339.0) 391.7
Net increase in cash and cash
equivalents 521.5 414.2
Cash and cash equivalents at
beginning of period 156.3 117.6
Cash and cash equivalents at
end of period $ 677.8 $ 531.8
See notes to consolidated financial statements.
<PAGE>9
Consolidated Statements of Income
Temple-Inland Inc. and Subsidiaries
Unaudited
Second Quarter First Six Months
1994 1993 1994 1993
(In millions, except for per share data)
Revenues
Manufacturing net sales $ 573.5 $ 543.7 $ 1,115.3 $ 1,080.4
Financial Services revenues 151.6 158.9 316.1 305.0
725.1 702.6 1,431.4 1,385.4
Costs and Expenses
Manufacturing costs and expenses 533.6 515.7 1,043.0 1,012.4
Financial Services expenses 137.2 140.4 284.7 269.5
670.8 656.1 1,327.7 1,281.9
Operating Income 54.3 46.5 103.7 103.5
Parent Company Interest - net ( 16.3) ( 17.7) ( 32.2) ( 35.2)
Other 1.1 1.1 1.3 1.6
Income Before Taxes and Accounting
Changes 39.1 29.9 72.8 69.9
Taxes on Income 12.5 9.0 23.3 21.0
Income Before Accounting Changes 26.6 20.9 49.5 48.9
Cumulative effect of accounting
changes - - - 50.0
Net Income $ 26.6 $ 20.9 $ 49.5 $ 98.9
Earnings per share:
Before accounting changes $ .48 $ .38 $ .89 $ .88
Effect of accounting changes - - - .90
Earnings per share $ .48 $ .38 $ .89 $1.78
Dividends Paid Per Share of
Common Stock $ .25 $ .25 $ .50 $ .50
Weighted Average Shares
Outstanding 55.8 55.6 55.8 55.6
See notes to consolidated financial statements.
<PAGE>10
Consolidated Balance Sheets
Temple-Inland Inc. and Subsidiaries
July 2, 1994
Unaudited
Parent Financial
Company Services Consolidated
(in millions)
ASSETS
Cash and cash equivalents $ 11.3 $ 677.8 $ 689.1
Investments - 4,167.3 4,167.3
Loans receivable - 2,916.7 2,916.7
Covered assets - 521.8 521.8
Receivable from FSLIC - ( 4.9) ( 4.9)
Trade and other receivables 244.2 - 244.2
Inventories 260.4 245.8 506.2
Property & equipment 2,541.3 40.8 2,582.1
Other assets 122.7 419.2 470.7
Investment in affiliates 566.6 - -
TOTAL ASSETS $ 3,746.5 $ 8,984.5 $12,093.2
LIABILITIES
Deposits $ - $ 6,646.6 $ 6,646.6
Securities sold under repurchase
agreements and Federal Home
Loan Bank advances - 1,378.6 1,378.6
Advances from borrowers for taxes
and insurance - 131.5 131.5
Other liabilities 372.0 212.3 572.4
Long-term debt 1,317.0 60.8 1,377.8
Deferred income taxes 203.5 - 132.3
Postretirement benefits 124.2 - 124.2
TOTAL LIABILITIES $ 2,016.7 $ 8,429.8 10,363.4
SHAREHOLDERS' EQUITY
Preferred stock - par value $1 per share:
authorized 25,000,000 shares; none issued -
Common stock - par value $1 per share:
authorized 200,000,000 shares; issued
61,389,552 shares including shares held
in the treasury 61.4
Additional paid-in capital 299.9
Retained earnings 1,503.8
1,865.1
Cost of shares held in the treasury:
5,664.098 shares ( 135.3)
TOTAL SHAREHOLDERS' EQUITY 1,729.8
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $12,093.2
See the notes to the consolidated financial statements.
<PAGE>11
Consolidated Balance Sheets
Temple-Inland Inc. and Subsidiaries
January 1, 1994
Unaudited
Parent Financial
Company Services Consolidated
(in millions)
ASSETS
Cash $ 8.6 $ 156.3 $ 164.9
Investments - 4,407.3 4,407.3
Loans receivable - 2,755.3 2,755.3
Covered assets - 664.3 664.3
Receivable from FSLIC - 34.2 34.2
Trade and other receivables 198.5 - 198.5
Inventories 258.1 630.1 888.2
Property & equipment 2,346.1 37.4 2,383.5
Other assets 104.9 448.4 463.1
Investment in affiliates 487.6 - -
TOTAL ASSETS $ 3,403.8 $ 9,133.3 $11,959.3
LIABILITIES
Deposits $ - $ 6,362.3 $ 6,362.3
Securities sold under repurchase
agreements and Federal Home
Loan Bank advances - 1,724.8 1,724.8
Advances from borrowers for taxes
and insurance - 59.2 59.2
Other liabilities 360.9 399.1 753.0
Long-term debt 1,044.8 76.2 1,121.0
Deferred income taxes 175.9 - 116.8
Postretirement benefits 122.0 - 122.0
TOTAL LIABILITIES $ 1,703.6 $ 8,621.6 10,259.1
SHAREHOLDERS' EQUITY
Preferred stock - par value $1 per share:
authorized 25,000,000 shares; none issued -
Common stock - par value $1 per share:
authorized 200,000,000 shares; issued
61,389,552 shares including shares held
in the treasury 61.4
Additional paid-in capital 296.9
Retained earnings 1,482.1
1,840.4
Cost of shares held in the treasury:
5,908,173 shares ( 140.2)
TOTAL SHAREHOLDERS' EQUITY 1,700.2
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $11,959.3
See the notes to the consolidated financial statements.
<PAGE>12
Consolidated Statements of Cash Flows
Temple-Inland Inc. and Subsidiaries
Unaudited
First Six Months
1994 1993
(in millions)
Cash Provided by (Used for) Operations
Net income $ 49.5 $ 98.9
Adjustments to reconcile net income to
net cash:
Cumulative effect of accounting changes - ( 50.0)
Depreciation and depletion 102.3 98.5
Amortization and accretion 4.9 8.6
Deferred taxes 15.9 ( 3.2)
Receivable from FSLIC 39.1 ( 1.2)
Trade and other receivables ( 46.2) ( 21.8)
Inventories 382.5 ( 158.5)
Other ( 172.8) 130.8
375.2 102.1
Cash Provided by (Used for) Investments
Capital expenditures ( 233.5) ( 180.9)
Sale of property and equipment, net 3.4 3.0
Purchase of investments ( 235.3) ( 268.8)
Maturities of investments 468.1 542.5
Proceeds from sale of loans and investments .6 11.6
Loans originated net of principal collected ( 58.7) ( 313.8)
Reduction in covered assets 141.3 44.5
Manufacturing acquisitions ( 64.1) -
Savings bank acquisition 200.2 -
Other 16.6 ( 3.1)
238.6 ( 165.0)
Cash Provided by (Used for) Financing
Additions to debt 272.3 146.5
Payments of debt ( 18.2) ( 75.9)
Net increase (decrease) in securities sold
under repurchase agreements and short-term
borrowings ( 346.4) 604.5
Cash dividends paid to shareholders ( 27.8) ( 27.6)
Net decrease in deposits ( 47.1) ( 211.6)
Other 77.6 42.2
( 89.6) 478.1
Net increase (decrease) in cash 524.2 415.2
Cash at beginning of period 164.9 124.7
Cash at end of period $ 689.1 $ 539.9
See notes to consolidated financial statements.
<PAGE>13
TEMPLE-INLAND INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE A - BASIS OF PRESENTATION
The accompanying unaudited interim consolidated financial statements have been
prepared in accordance with generally accepted accounting principles for
interim financial information and with the instructions to Form 10-Q and
Article 10 of Regulation S-X. Accordingly, they do not include all of the
information and footnotes required by generally accepted accounting principles
for complete financial statements. However, because certain assets and
liabilities are in separate corporate entities, the consolidated assets are
not available to satisfy all consolidated liabilities. In the opinion of
management, all adjustments (consisting only of normal accruals) considered
necessary for a fair presentation have been included. For further
information, refer to the consolidated financial statements and footnotes
included in, or incorporated into, Temple-Inland Inc.'s (the "Company") Annual
Report on Form 10-K for the fiscal year ended January 1, 1994.
The consolidated financial statements include the accounts of Temple-Inland
Inc. and all subsidiaries in which the Company has more than a 50 percent
equity ownership. All material intercompany amounts and transactions have
been eliminated.
Included as an integral part of the consolidated financial statements are
separate summarized financial statements for the Company's primary business
groups.
The Parent Company (Temple-Inland Inc.) summarized financial statements
include the accounts of Temple-Inland Inc. and its manufacturing subsidiaries
with the Financial Services subsidiaries and the 20 percent to 50 percent
owned companies being reflected in the financial statements on the equity
basis.
The Temple-Inland Financial Services Group summarized financial statements
include savings bank, mortgage banking and real estate development activities
and insurance operations.
NOTE B - CONTINGENCIES
There are pending against the Company and its subsidiaries lawsuits and claims
arising in the regular course of business.
In the opinion of management, recoveries, if any, by plaintiffs or claimants
that may result from the foregoing litigation and claims will not be material
in relation to the consolidated financial position of the Company and its
subsidiaries.
<PAGE>14
MANAGEMENT'S DISCUSSION AND ANALYSIS
Results of Operations
Results of operations, including information regarding the Company's principal
business segments, are shown below:
Second Quarter First Six Months
1994 1993 1994 1993
(in millions)
Revenues
Corrugated container $ 353.8 $ 319.6 $ 680.7 $ 638.1
Bleached paperboard 76.0 86.9 145.7 175.7
Building products 137.6 118.7 277.2 236.7
Other activities 6.1 18.5 11.7 29.9
Manufacturing net sales 573.5 543.7 1,115.3 1,080.4
Financial services 151.6 158.9 316.1 305.0
Total revenues $ 725.1 $ 702.6 $ 1,431.4 $ 1,385.4
Income
Corrugated container $ 17.2 $ 11.0 $ 26.3 $ 27.5
Bleached paperboard ( 8.2) - ( 18.4) .1
Building products 33.4 22.7 69.6 49.1
Other activities .8 ( 3.0) 1.2 ( 3.0)
Operating profit 43.2 30.7 78.7 73.7
Financial services 14.4 18.5 31.4 35.5
57.6 49.2 110.1 109.2
Corporate expenses ( 3.3) ( 2.7) ( 6.4) ( 5.7)
Parent company interest - net ( 16.3) ( 17.7) ( 32.2) ( 35.2)
Other - net 1.1 1.1 1.3 1.6
Income before taxes and
accounting changes 39.1 29.9 72.8 69.9
Taxes on income 12.5 9.0 23.3 21.0
Income before accounting
changes 26.6 20.9 49.5 48.9
Cumulative effect of accounting
changes - - - 50.0
Net income $ 26.6 $ 20.9 $ 49.5 $ 98.9
<PAGE>15
Second Quarter 1994 vs. Second Quarter 1993
Second quarter earnings for 1994 totaled $26.6 million, or $.48 per share
compared with earnings of $20.9 million, or $.38 per share in the second
quarter of last year. Revenues slightly increased for this year's quarter to
$725.1 million.
The corrugated container group earned $17.2 million in the quarter, up from
$11.0 million earned in the second quarter of 1993. Demand for corrugated
boxes and containerboard remains strong, with shipments of boxes up 6.9
percent for the quarter from the second quarter of last year. While selling
prices for boxes and containerboard have begun to recover, much of the
improvement is being offset by dramatic increases in the cost of old
corrugated containers ("OCC"), a significant percentage of the raw material
used in the Company's containerboard mills.
Demand for product in the bleached paperboard group increased in the second
quarter, allowing the mill to operate more efficiently. Pricing also began to
recover in certain product categories. The group lost $8.2 million, less than
the $10.2 million lost in the first quarter, and compared with break-even in
the second quarter last year.
The building products group earned $33.4 million in the quarter, up from $22.7
million in the second quarter last year. While earnings were down slightly
from the first quarter, it was the second best quarter ever for this group.
Selling prices for solid wood products remained above levels for the second
quarter of 1993, but were below first quarter realizations. Demand for panel
products remained stronger than solid wood and selling prices continued to
recover.
Temple-Inland Financial Services earned $14.4 million in the quarter, down
$4.1 million from the second quarter last year. The unfavorable variance is
partially due to the decrease in income from our mortgage unit, whose level of
originations has declined as the refinancing activity has subsided.
Net interest expense decreased to $16.3 million in the second quarter of 1994
compared with $17.7 million in the second quarter of last year. Although
interest expense increased due to higher levels of debt outstanding, that
increase was more than offset by an increase in capitalized interest due to
the Company's continuing spending for the bleached paperboard group's
modernization projects which are expected to be operational in mid-1995.
<PAGE>16
First Half of 1994 vs. First Half of 1993
Earnings for the first six months of 1994 before the effect of accounting
changes were $49.5 million, or $.89 per share compared with $48.9 million, or
$.88 per share for the first half of last year. Revenues of $1.43 billion
were slightly up from the 1993 first half.
The corrugated container group's earnings of $26.3 million were down 4.3
percent from last year. Demand for all of our products remains strong with
shipments of boxes up 5.8 percent from last year. Earnings are lower compared
to last year due primarily to substantial increases in the cost of old
corrugated containers, a primary raw material.
The bleached paperboard group operated at a loss of $18.4 million compared
with break-even earnings in the first half of 1993. Demand for paperboard's
products strengthened during the latter part of the second quarter but
remained below last year's level.
The building products group earned $69.6 million in the first half of 1994
compared with $49.1 million last year due to increased demand and improved
price levels for most of our product lines.
Earnings for the financial services group were $31.4 million for the period
compared with $35.5 million for last year's comparable period due to the
decrease in income from our mortgage unit, whose level of originations has
declined as the refinancing activity has subsided. Also, margin compression
continued to adversely affect earnings as our interest costs on deposits
increased.
Financial Condition
The Company's financial condition continues to be sound. Internally generated
funds, existing credit facilities and the capacity to issue long-term debt are
sufficient to fund projected capital expenditures, to service existing debt,
to pay dividends and to meet normal working capital requirements. During the
first half of 1994, the Company's debt increased $270 million mainly through
issuance of commercial paper and bank debt to fund planned capital projects
for our bleached paperboard group and a purchase of a specialty corrugated
business by our corrugated container group.
Our savings bank continues to meet all three regulatory requirement formulae
set out under the Financial Institution Reform, Recovery and Enforcement Act
of 1989 ("FIRREA").
<PAGE>17
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
The information set forth in Note B to Notes to Consolidated
Financial Statements in Part I of this report is incorporated
by reference thereto.
Item 2. Changes in Securities.
Not Applicable.
Item 3. Defaults Upon Senior Securities.
Not Applicable.
Item 4. Submission of Matters to a Vote of Security Holders.
Not Applicable
Item 5. Other Information.
Not Applicable.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
Regulation S-K
Exhibit Number
(11) Statement re computation of per share earnings.
(b) Reports on Form 8-K. During the three months ended
July 2, 1994, the Company did not file any reports on
Form 8-K.<PAGE>
<PAGE>18
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.
TEMPLE-INLAND INC.
(Registrant)
Date: August 5, 1994 By /s/ David H. Dolben
David H. Dolben
Vice President and
Chief Accounting Officer
<PAGE>19
EXHIBIT INDEX
The following is an index of the exhibits filed herewith. The page reference
set forth opposite the description of exhibits included in such index refer to
the pages under the sequential numbering system prescribed by Rule 0-3(b)
under the Securities Exchange Act of 1934.
Regulation S-K
Exhibit Sequential
Number Page Number
(11) Statement re computation of 20
per share earnings.
<PAGE>20
EXHIBIT (11)
<TABLE>
TEMPLE-INLAND INC. AND SUBSIDIARIES
STATEMENT RE: COMPUTATION OF PER SHARE EARNINGS
(in thousands, except for per share data)
<CAPTION>
Second Quarter First Six Months
1994 1993 1994 1993
<S> <C> <C> <C> <C>
Primary
Average common shares outstanding 55,692 55,303 55,639 55,289
Net effect of dilutive stock options
based on treasury stock method using
average market price 145 268 175 306
Weighted average shares outstanding 55,837 55,571 55,814 55,595
Net income:
Income before accounting changes $ 26,618 $ 20,923 $ 49,532 $ 48,929
Cumulative effect of accounting changes - - - 50,000
Net income $ 26,618 $ 20,923 $ 49,532 $ 98,929
Earnings per share:
Before accounting changes $ .48 $ .38 $ .89 $ .88
Effect of accounting changes - - - .90
Earnings per share $ .48 $ .38 $ .89 $ 1.78
Fully Diluted
Average common shares outstanding 55,692 55,303 55,639 55,289
Net effect of dilutive stock options
based on treasury stock method
using the closing market price, if
higher than average market price 145 268 175 306
Weighted average shares outstanding 55,837 55,571 55,814 55,595
Net income:
Income before accounting changes $ 26,618 $ 20,923 $ 49,532 $ 48,929
Cumulative effect of accounting changes - - - 50,000
Net income $ 26,618 $ 20,923 $ 49,532 $ 98,929
Earnings per share:
Before accounting changes $ .48 $ .38 $ .89 $ .88
Effect of accounting changes - - - .90
Earnings per share $ .48 $ .38 $ .89 $ 1.78
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