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: November 15, 2000
POTLATCH CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 1-5313 82-0156045
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(State of other (Commission File (I.R.S. Employer
jurisdiction of Number) Identification Number)
incorporation)
601 W. Riverside Avenue, Suite 1100, Spokane, WA 99201
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(Address of principal executive offices) (zip code)
Registrant's telephone number, including area code:
509-835-1500
Item 5. Other Events
On November 14, 2000, Potlatch Corporation issued the following news release:
"Spokane - Potlatch Corporation (NYSE: PCH) today announced that
it will revise the company's financial statements for the
quarters ended June 30 and September 30, 2000, due to an
unintentional accounting error that overstated the cost of
inventories for the company's printing papers segment.
As a result of these revisions, which will have no effect
on cash flow, the company's net earnings for the first nine
months of 2000, before nonrecurring after-tax charges totaling
$27.1 million, were $9.6 million or $.34 per diluted common
share. This compares with the previously reported net earnings
of $15.3 million or $.53 per diluted common share.
Including the nonrecurring charges, the company had a
revised net loss for the first nine months of $17.5 million or
$.61 per diluted common share, compared with the previously
reported loss of $11.8 million or $.41 per diluted common share.
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The company's revised consolidated earnings before
nonrecurring charges for the quarters ended June 30 and
September 30 were $6.4 million and $.8 million, respectively, or
$.23 per diluted common share and $.03 per diluted common share,
respectively. This compares with the previously reported second
and third quarter earnings before nonrecurring charges of $8.5
million and $4.4 million, respectively, or $.30 per diluted
common share and $.15 per diluted common share. Including the
nonrecurring charges, the company's revised consolidated losses
for the second and third quarter were $9.4 million and $10.5
million, respectively, or $.32 per diluted common share and $.37
per diluted common share. This compares with the previously
reported loss of $7.4 million and $6.9 million, respectively, or
$.25 per diluted common share and $.24 per diluted common share.
The company will report revised operating earnings in the
printing papers segment for the second and third quarters of $.3
million and $2.3 million, respectively, compared to the
previously reported operating earnings of $3.7 million and $8.2
million.
The accounting error resulted from an incorrect input into
an inventory accounting valuation program implemented earlier in
the year. The company uses the average cost method to determine
the cost of its fine paper and pulp inventories. As a result of
the error, inventory values were not written down quarterly as
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production costs decreased during the second and third quarters,
resulting in the incorrect statement of operating earnings for
the printing papers segment. The reduction in production costs
resulted from improving operations at both the company's new
pulp mill and its paper manufacturing and converting operations.
"The accounting error has been fully reviewed and corrected,"
said Gerald L. Zuehlke, the company's vice president, finance,
and chief financial officer. The company intends to file amended
reports on Form 10-Q for the second and third quarters.
This news release contains, in addition to historical
information, certain forward-looking statements. These forward-
looking statements are based on management's best estimates and
assumptions regarding future events, and are therefore subject
to known and unknown risks and uncertainties, including those
set forth in the company's Report on Form 10-Q for the quarter
ended September 30, 2000, and other reports filed by the company
with the Securities and Exchange Commission, and are not
guarantees of future performance. The company's actual results
could differ materially from those expressed or implied by
forward-looking statements.
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SIGNATURE
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.
POTLATCH CORPORATION
(Registrant)
Date: November 15, 2000 By: /s/MALCOLM A. RYERSE
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Malcolm A. Ryerse
Secretary
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