________________________________________________
FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
--------------------
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1994
Commission File Number 1-9204
THE PACIFIC LUMBER COMPANY
(Exact name of Registrant as specified in its charter)
DELAWARE 13-3318327
(State or other jurisdiction (I.R.S. Employer
of incorporation or Identification Number)
organization)
P. O. BOX 37
125 MAIN STREET
SCOTIA, CALIFORNIA 95565
(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code: (707) 764-2222
Indicate by check mark 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 such filing requirements for the past 90
days. Yes /X / No / /
Number of shares of common stock outstanding at May 1, 1994: 100
Registrant meets the conditions set forth in General Instruction H(1)(a)
and (b) of Form 10-Q and is therefore filing this Form with the reduced
disclosure format.
________________________________________________
<PAGE>
THE PACIFIC LUMBER COMPANY
INDEX
Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheet at March 31, 1994 and
December 31, 1993 . . . . . . . . . . . . . . . . . 3
Consolidated Statement of Operations for the three
months ended March 31, 1994 and 1993 . . . . . . . . 4
Consolidated Statement of Cash Flows for the three months
ended March 31, 1994 and 1993 . . . . . . . . . . . 5
Condensed Notes to Consolidated Financial Statements . . 6
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations . . . . . . . 8
PART II. OTHER INFORMATION
Item 1. Legal Proceedings . . . . . . . . . . . . . . . . . . 11
Item 5. Other Information . . . . . . . . . . . . . . . . . . 11
Item 6. Exhibits and Reports on Form 8-K . . . . . . . . . . . 11
Signatures . . . . . . . . . . . . . . . . . . . . . . . . . . . S-1
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED BALANCE SHEET
March 31, December 31,
1994 1993
-------------- ----------------
(Unaudited)
(In thousands of dollars)
ASSETS
<S> <C> <C>
Current assets:
Cash and cash equivalents . . . . . . . . . . . . . . . . . $ 22,240 $ 38,760
Marketable securities . . . . . . . . . . . . . . . . . . . 12,384 5,635
Receivables:
Trade . . . . . . . . . . . . . . . . . . . . . . . . . 12,890 14,750
Other . . . . . . . . . . . . . . . . . . . . . . . . . 4,193 3,801
Inventories . . . . . . . . . . . . . . . . . . . . . . . . 61,628 66,241
Prepaid expenses and other current
assets . . . . . . . . . . . . . . . . . . . . . . . . . . 3,536 2,939
-------------- ----------------
Total current assets . . . . . . . . . . . . . . . 116,871 132,126
Timber and timberlands, net of depletion of $174,105 and $171,007
at March 31, 1994 and December 31, 1993, respectively . . . . . . 362,967 365,511
Property, plant and equipment, net of accumulated depreciation of
$50,641 and $48,703 at March 31, 1994 and December 31, 1993,
respectively . . . . . . . . . . . . . . . . . . . . . . . . . . 97,703 96,541
Deferred financing costs, net . . . . . . . . . . . . . . . . . . 25,991 26,500
Deferred income taxes . . . . . . . . . . . . . . . . . . . . . . 49,711 52,066
Restricted cash . . . . . . . . . . . . . . . . . . . . . . . . . 33,532 33,562
Other assets . . . . . . . . . . . . . . . . . . . . . . . . . . 6,370 6,630
-------------- ----------------
$ 693,145 $ 712,936
============== ================
LIABILITIES AND STOCKHOLDER'S EQUITY
Current liabilities:
Accounts payable . . . . . . . . . . . . . . . . . . . . . . $ 4,737 $ 2,360
Accrued compensation and related benefits . . . . . . . . . 10,006 7,782
Accrued interest . . . . . . . . . . . . . . . . . . . . . . 7,758 21,627
Deferred income taxes . . . . . . . . . . . . . . . . . . . 14,132 14,132
Other accrued liabilities . . . . . . . . . . . . . . . . . 1,503 1,377
Long-term debt, current maturities . . . . . . . . . . . . . 13,281 13,191
-------------- ----------------
Total current
liabilities . . . . . . . . . . . . . . . . . . 51,417 60,469
Long-term debt, less current maturities . . . . . . . . . . . . . 590,576 598,811
Other noncurrent liabilities . . . . . . . . . . . . . . . . . . 27,740 27,925
-------------- ----------------
Total liabilities . . . . . . . . . . . . . . . . 669,733 687,205
-------------- ----------------
Contingencies
Stockholder's equity:
Common stock, $.01 par value, 100
shares authorized and issued . . . . . . . . . . . . . . - -
Additional capital . . . . . . . . . . . . . . . . . . . . . 157,520 157,520
Accumulated deficit . . . . . . . . . . . . . . . . . . . . (134,108) (131,789)
-------------- ----------------
Total stockholder's equity . . . . . . . . . . . . 23,412 25,731
-------------- ----------------
$ 693,145 $ 712,936
============== ================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF OPERATIONS
(UNAUDITED)
Three Months Ended
March 31,
-----------------------------
1994 1993
------------- ------------
(In thousands of dollars)
<S> <C> <C>
Net sales:
Lumber and logs . . . . . . . . . . . . . . . . $ 47,855 $ 41,597
Other . . . . . . . . . . . . . . . . . . . . . 2,961 3,972
------------- ------------
50,816 45,569
------------- ------------
Operating expenses:
Cost of goods sold (exclusive of depletion and
depreciation) . . . . . . . . . . . . . . . . . 28,712 22,334
Selling, general and administrative . . . . . . 3,975 3,549
Depletion and depreciation . . . . . . . . . . . 5,981 6,126
------------- ------------
38,668 32,009
------------- ------------
Operating income . . . . . . . . . . . . . . . . . . 12,148 13,560
Other income (expense):
Investment and other income . . . . . . . . . . 7,459 350
Interest expense . . . . . . . . . . . . . . . . (13,871) (15,934)
------------- ------------
Income (loss) before income taxes, extraordinary item
and cumulative effect of changes in accounting
principles . . . . . . . . . . . . . . . . . . . . . 5,736 (2,024)
Credit (provision) in lieu of income taxes . . . . . (2,355) 749
------------- ------------
Income (loss) before extraordinary item and cumulative
effect of changes in accounting principles . . . . . 3,381 (1,275)
Extraordinary item:
Loss on early extinguishment of debt, net of
related credit in lieu of income taxes of $5,566 - (10,802)
Cumulative effect of changes in accounting principles:
Postretirement benefits other than pensions, net
of related credit in lieu of income taxes of
$1,566 . . . . . . . . . . . . . . . . . . . . . - (2,348)
Accounting for income taxes . . . . . . . . . . - 4,973
------------- ------------
Net income (loss) . . . . . . . . . . . . . . . . . . $ 3,381 $ (9,452)
============= ============
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
Three Months Ended
March 31,
-----------------------------
1994 1993
------------- ------------
(In thousands of dollars)
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) . . . . . . . . . . . . . . . . . . . . . . $ 3,381 $ (9,452)
Adjustments to reconcile net income (loss) to net cash provided
by (used for) operating activities:
Depletion and depreciation . . . . . . . . . . . . . . . 5,981 6,126
Amortization of deferred financing costs . . . . . . . . 522 388
Net losses (gains) on marketable securities . . . . . . . 359 (377)
Extraordinary loss on early extinguishment of debt, net . - 10,802
Incurrence of financing costs . . . . . . . . . . . . . . - (26,860)
Cumulative effect of changes in accounting principles, net
Decrease in inventories, net of depletion . . . . . . . . 3,784 3,219
Increase in accounts payable . . . . . . . . . . . . . . 2,377 3,491
Decrease (increase) in accrued and deferred income taxes 2,355 (749)
Increase in other liabilities . . . . . . . . . . . . . . 2,165 191
Decrease in receivables . . . . . . . . . . . . . . . . . 1,468 13,477
Decrease in accrued interest . . . . . . . . . . . . . . (13,869) (29,797)
Increase in prepaid expenses and other current assets . . (597) (278)
Other . . . . . . . . . . . . . . . . . . . . . . . . . . 415 (244)
------------- ------------
Net cash provided by (used for) operating activities 8,341 (32,688)
------------- ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Net purchases of marketable securities . . . . . . . . . . . . (7,108) (7,427)
Capital expenditures . . . . . . . . . . . . . . . . . . . . . (3,908) (1,747)
------------- ------------
Net cash used for investing activities . . . . . . . (11,016) (9,174)
------------- ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Redemptions, repurchase of and principal payments on long-term
debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (8,145) (549,683)
Dividends paid . . . . . . . . . . . . . . . . . . . . . . . . (5,700) (25,000)
Proceeds from issuance of long-term debt . . . . . . . . . . . - 620,000
Restricted cash deposits . . . . . . . . . . . . . . . . . . . - (35,000)
------------- ------------
Net cash provided by (used for) financing activities (13,845) 10,317
------------- ------------
NET DECREASE IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . (16,520) (31,545)
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD . . . . . . . . . 38,760 43,537
------------- ------------
CASH AND CASH EQUIVALENTS AT END OF PERIOD . . . . . . . . . . . . $ 22,240 $ 11,992
============= ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Interest paid, net of capitalized interest . . . . . . . . . . $ 27,218 $ 45,343
Income taxes paid . . . . . . . . . . . . . . . . . . . . . . - -
</TABLE>
<PAGE>
CONDENSED NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(IN THOUSANDS OF DOLLARS)
1. GENERAL
The information contained in the following notes to the
consolidated financial statements is condensed from that which would
appear in the annual consolidated financial statements; accordingly, the
consolidated financial statements included herein should be reviewed in
conjunction with the consolidated financial statements and related notes
thereto contained in the Annual Report on Form 10-K filed by The Pacific
Lumber Company with the Securities and Exchange Commission for the fiscal
year ended December 31, 1993 (the "Form 10-K"). All references to the
"Company" include The Pacific Lumber Company and its subsidiary companies
unless otherwise indicated or the context indicates otherwise.
Accounting measurements at interim dates inherently involve greater
reliance on estimates than at year end. The results of operations for
the interim periods presented are not necessarily indicative of the
results to be expected for the entire year.
The consolidated financial statements included herein are
unaudited; however, they include all adjustments of a normal recurring
nature which, in the opinion of management, are necessary to present
fairly the consolidated financial position of the Company at March 31,
1994 and the consolidated results of operations and cash flows for the
three months ended March 31, 1994 and 1993. Certain reclassifications of
prior period information have been made to conform to the current
presentation. The Company is a wholly owned indirect subsidiary of
MAXXAM Group Inc. ("MGI") which is a wholly owned subsidiary of MAXXAM
Inc. ("MAXXAM").
2. INVENTORIES
Inventories consist of the following:
<TABLE>
<CAPTION>
March 31, December 31,
1994 1993
------------- -------------
<S> <C> <C>
Lumber . . . . . . . . . . . . . . . $49,755 $50,906
Logs . . . . . . . . . . . . . . . . 11,873 15,335
------------- -------------
$61,628 $66,241
============= =============
</TABLE>
3. LONG-TERM DEBT
Long-term debt consists of the following:
<TABLE>
<CAPTION>
March 31, December 31,
1994 1993
-------------- -----------------
<S> <C> <C>
7.95% Timber Collateralized Notes due July 20, 2015 $ 368,857
10 1/2% Senior Notes due March 1, 2003 . . . . . . 235,000 235,000
Other . . . . . . . . . . . . . . . . . . . . . . . - 49
-------------- -----------------
603,857 612,002
Less: current maturities . . . . . . . . . . . . . (13,281) (13,191)
-------------- -----------------
$ 590,576 $ 598,811
============== =================
</TABLE>
4. INVESTMENT AND OTHER INCOME
In February 1994, the Company received a franchise tax refund
of $7,243, the substantial portion of which represents interest, from the
State of California relating to tax years 1972 through 1985. This amount
is included in investment and other income for the three months ended
March 31, 1994.
<PAGE>
5. CONTINGENCIES
The Company's operations are subject to a variety of California
and, in some cases, federal laws and regulations dealing with timber
harvesting, endangered species, water quality and air and water
pollution. The Company does not expect that compliance with such
existing laws and regulations will have a material adverse effect on the
Company's future operating results. There can be no assurance, however,
that future legislation, governmental regulations or judicial or
administrative decisions would not adversely affect the Company or its
ability to sell lumber, logs or timber.
Various groups and individuals have filed objections with the
California Department of Forestry ("CDF") regarding the CDF's actions and
rulings with respect to certain of the Company's timber harvesting plans
("THPs"), and the Company expects that such groups and individuals will
continue to file objections to the Company's THPs. In addition, lawsuits
are pending which seek to prevent the Company from implementing certain
of its approved THPs. These challenges have severely restricted the
Company's ability to harvest virgin old growth redwood timber on its
property during the past few years, as well as substantial amounts of
virgin Douglas-fir timber which are located in virgin old growth redwood
stands. No assurance can be given as to the extent of such litigation in
the future. The Company believes that environmentally focused challenges
to its THPs are likely to occur in the future. Although such challenges
have delayed or prevented the Company from conducting a portion of its
operations, to date such challenges have not had a material adverse
effect on the Company's consolidated financial position or results of
operations. It is, however, impossible to predict the future nature or
degree of such challenges or their ultimate impact on the operating
results or consolidated financial position of the Company.
The Company, MGI, MAXXAM and certain of their former and
current officers and directors are defendants in various actions related
to MGI's acquisition of the Company. Management is of the opinion that
the outcome of such litigation is unlikely to have a material adverse
effect on the Company's consolidated financial position. Management is
unable to express an opinion as to whether the outcome of such litigation
is unlikely to have a material adverse effect on the Company's results of
operations in respect of any fiscal year.
The Company is also involved in various claims, lawsuits and
proceedings relating to a wide variety of other matters. While there are
uncertainties inherent in the ultimate outcome of such matters and it is
impossible to presently determine the ultimate costs that may be
incurred, management believes the resolution of such uncertainties and
the incurrence of such costs should not have a material adverse effect
upon the Company's consolidated financial position or results of
operations.
<PAGE>
THE PACIFIC LUMBER COMPANY
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
The following should be read in conjunction with the response
to Part I, Item 1 of this Report and Items 7 and 8 of the Form 10-K. Any
capitalized terms used but not defined in this Item have the same meaning
given to them in the Form 10-K.
RESULTS OF OPERATIONS
The Company's business is highly seasonal, in that the Company
has historically experienced lower first and fourth quarter sales due
largely to the general decline in construction related activity during
the winter months. Accordingly, the Company's results for any one
quarter are not necessarily indicative of results to be expected for the
full year. The following table presents selected operational and
financial information for the three months ended March 31, 1994 and 1993.
The information presented in the table is in millions of dollars except
shipments and prices.
<TABLE>
<CAPTION>
Three Months Ended
March 31,
-----------------------------
1994 1993
-------------- -------------
<S> <C> <C>
Shipments:
Lumber(1):
Redwood upper grades . . . . . . . . . 12.9 15.8
Redwood common grades . . . . . . . . . 27.7 26.3
Douglas-fir upper grades . . . . . . . 2.5 3.2
Douglas-fir common grades . . . . . . . 15.4 14.9
-------------- -------------
Total lumber . . . . . . . . . . . 58.5 60.2
============== =============
Logs(2) . . . . . . . . . . . . . . . . . . 9.9 1.8
============== =============
Wood chips(3) . . . . . . . . . . . . . . . 26.0 36.5
============== =============
Average sales price:
Lumber(4):
Redwood upper grades . . . . . . . . . $ 1,406 $ 1,213
Redwood common grades . . . . . . . . . 468 485
Douglas-fir upper grades . . . . . . . 1,405 1,114
Douglas-fir common grades . . . . . . . 460 427
Logs(4) . . . . . . . . . . . . . . . . . . 692 433
Wood chips(5) . . . . . . . . . . . . . . . 79 81
Net sales:
Lumber, net of discount . . . . . . . . . . $ 41.0 $ 40.8
Logs . . . . . . . . . . . . . . . . . . . . 6.9 .8
Wood chips . . . . . . . . . . . . . . . . . 2.0 3.0
Cogeneration power . . . . . . . . . . . . . .6 .7
Other . . . . . . . . . . . . . . . . . . . .3 .3
-------------- -------------
Total net sales . . . . . . . . . $ 50.8 $ 45.6
============== =============
Operating income . . . . . . . . . . . . . . . . $ 12.1 $ 13.6
============== =============
Income (loss) before income taxes, extraordinary
item and cumulative effect of changes in
accounting principles . . . . . . . . . . . . . . $ 5.7 $ (2.0)
============== =============
Net income (loss) . . . . . . . . . . . . . . . . $ 3.4 $ (9.5)
============== =============
Capital expenditures . . . . . . . . . . . . . . $ 3.9 $ 1.7
============== =============
<FN>
--------------------
(1) Lumber shipments are expressed in millions of board feet.
(2) Log shipments are expressed in millions of board feet, net Scribner scale.
(3) Wood chip shipments are expressed in thousands of bone dry units of 2,400 pounds.
(4) Dollars per thousand board feet.
(5) Dollars per bone dry unit.
</TABLE>
<PAGE>
Shipments
Lumber shipments for the three months ended March 31, 1994 were
58.5 million board feet, a decrease of 3% from 60.2 million board feet
for the three months ended March 31, 1993. This decrease was principally
due to an 18% decrease in shipments of upper grade redwood lumber,
partially offset by a 5% increase in redwood common lumber shipments.
Log shipments for the three months ended March 31, 1994 were 9.9 million
feet (net Scribner scale), an increase from 1.8 million feet for the
three months ended March 31, 1993.
Old growth trees constitute the Company's principal source of
upper grade redwood lumber. Due to the severe restrictions on the
Company's ability to harvest virgin old growth timber on its property
(see "Trends" under Item 7 of the Form 10-K), the Company's supply of
upper grade lumber has decreased in some premium product categories. The
Company has been able to lessen the impact of these decreases by
augmenting its production facilities to increase its recovery of upper
grade lumber from smaller diameter logs and increasing the production of
manufactured upper grade lumber products through its end and edge glue
facility (which is currently being expanded). However, unless the
Company is able to sustain the harvest level of old growth trees it has
experienced in recent years, the Company expects that its supply of
premium upper grade lumber products will decrease from current levels and
that its manufactured lumber products will constitute a higher percentage
of its shipments of upper grade lumber products.
Net sales
Revenues from net sales of lumber and logs for the three months
ended March 31, 1994 increased by approximately 15% from the three months
ended March 31, 1993. This increase was principally due to increased log
shipments, a 60% increase in the average realized price of log sales, a
16% increase in the average realized price of upper grade redwood lumber
and a 26% increase in the average realized price of upper grade Douglas-
fir lumber, partially offset by decreased shipments of lumber, as
previously discussed. The decrease in other sales for the three months
ended March 31, 1994 as compared to the three months ended March 31, 1993
was attributable to decreased sales of wood chips.
Operating income
Operating income for the three months ended March 31, 1994
decreased by approximately 10% as compared to the three months ended
March 31, 1993. This decrease was principally due to lower shipments of
high margin upper grade lumber and the continued higher costs of logs.
The Company's cost of producing lumber products has continued to increase
as a result of compliance with evolving environmental regulations,
litigation associated with its timber harvesting plans and greater
costs attributable to processing larger numbers of smaller diameter logs
and producing manufactured products. For the three months ended March
31, 1993, cost of goods sold was reduced by $1.2 million for an
additional business interruption insurance claim as a result of the April
1992 earthquake.
Income (loss) before income taxes, extraordinary item and
cumulative effect of changes in accounting principles
Income before income taxes, extraordinary item and cumulative
effect of changes in accounting principles increased for the three months
ended March 31, 1994 as compared to the three months ended March 31,
1993. This increase resulted from the receipt of a franchise tax refund
of $7.2 million (as described in Note 4 to the Condensed Notes to
Consolidated Financial Statements) and decreased interest expense,
partially offset by the decrease in operating income. Interest expense
decreased due to lower interest rates resulting from the refinancing of
the Company's long-term debt in March of 1993.
<PAGE>
FINANCIAL CONDITION AND INVESTING AND FINANCING ACTIVITIES
As of March 31, 1994, the Company had consolidated working
capital of $65.5 million and long-term debt of $557.0 million (net of
current maturities and restricted cash deposited in the Liquidity
Account) as compared to $71.7 million and $565.2 million, respectively,
at December 31, 1993. The decrease in long-term debt was due to
principal payments on the Timber Notes. The decline in working capital
was primarily due to such principal payments along with dividends and
capital expenditures, partially offset by improved cash flows from
operations. The Company anticipates that cash flows from operations,
together with existing cash, marketable securities and available sources
of financing, will be sufficient to fund the Company's working capital
and capital expenditures requirements for the foreseeable future;
however, due to its highly leveraged condition, the Company is more
sensitive than less leveraged companies to factors affecting its
operations, including governmental regulation affecting its timber
harvesting practices, increased competition from other lumber producers
or alternative building products and general economic conditions.
As of March 31, 1994, $19.7 million of borrowings was available
under the Company's Revolving Credit Agreement, of which $4.7 million was
available for letters of credit. No borrowings were outstanding as of
March 31, 1994, and letters of credit outstanding amounted to $10.3
million.
The indentures governing the Senior Notes and the Timber Notes
and the Company's Revolving Credit Agreement contain various covenants
which, among other things, limit the payment of dividends and restrict
transactions between the Company and its affiliates. As of March 31,
1994, under the most restrictive of these covenants, approximately $3.4
million of dividends may be paid by the Company. On February 24, 1994,
the Company paid dividends of $5.7 million which represented the entire
amount permitted at December 31, 1993.
<PAGE>
THE PACIFIC LUMBER COMPANY
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Reference is made to Item 3 of the Form 10-K for information
concerning material legal proceedings with respect to the Company. The
following material developments have occurred with respect to such legal
proceedings. Any capitalized or italicized terms used but not defined in
this Item have the same meaning given to them in the Form 10-K.
MERGER LITIGATION
With respect to the Russ case, the Court has scheduled a status
conference for June 6, 1994.
With respect to the Boesky Multidistrict Securities Litigation,
trial is set to commence beginning May 17, 1994. Additionally,
plaintiffs were recently allowed to amend their complaint with additional
claims, including that MAXXAM and others assisted the former Board of
Directors of the Company in their alleged breaches of fiduciary duty.
With respect to the Kayes case, oral argument before the 9th
Circuit Court of Appeal was held May 10, 1994 and the Court took the
matter under submission.
ENVIRONMENTAL LITIGATION
With respect to the Sierra Club, et al. v. State Board of
Forestry (No. 82371) action, the California Supreme Court has scheduled
oral argument for June 7, 1994.
With respect to the Lost Coast League action, on April 19, 1994
the Court indicated that it would be issuing a preliminary injunction
staying harvesting operations in connection with this THP pending trial
which is scheduled to commence on June 27, 1994.
Effective May 2, 1994, EPIC filed an action entitled EPIC v.
California Department of Forestry, et al. (No. 94CP0317) in the Superior
Court of Humboldt County, California. This lawsuit relates to six THPs
for approximately 1,360 acres of primarily residual old growth redwood
timber (virtually all of such acres containing timber of SPHC). On May
5, 1994, the Court held a hearing on plaintiff's application for a
temporary restraining order ("TRO") and the Court took the matter under
submission. On May 10, 1994, the Court denied plaintiff's application
for a TRO.
ITEM 5. OTHER INFORMATION
None.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
A. EXHIBITS:
None.
B. REPORTS ON FORM 8-K:
None.
<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.
THE PACIFIC LUMBER COMPANY
Date: May 13, 1994 By: JOHN T. LA DUC
John T. La Duc
Vice President - Chief Financial
Officer
(Principal Financial Officer)
Date: May 13, 1994 By: GARY L. CLARK
Gary L. Clark
Vice President - Finance and
Administration
(Principal Accounting Officer)
