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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 11-K
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ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended June 30, 1997
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Commission file number: 33-60032
Buckeye Retirement Plus Savings Plan
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Buckeye Technologies Inc.
1001 Tillman Street, Memphis, TN 38112
901-320-8100
Plan Number 333/001
Internal Revenue Service -- Employer Identification No. 62-1518973
June 30, 1997 and 1996
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<PAGE>
Audited Financial Statements and
Supplemental Schedules
Buckeye Retirement Plus
Savings Plan
June 30, 1997 and 1996
with Report of Independent Auditors
<PAGE>
Buckeye Retirement Plus Savings Plan
Audited Financial Statements and Supplemental Schedules
June 30, 1997 and 1996
Contents
Report of Independent Auditors................................................1
Audited Financial Statements
Statements of Net Assets Available for Benefits,
with Fund Information.......................................................2
Statement of Changes in Net Assets Available for Benefits,
with Fund Information.......................................................4
Notes to Financial Statements.................................................5
Supplemental Schedules
Item 27a--Schedule of Assets Held for Investment Purposes.....................9
Item 27d--Schedule of Reportable Transactions................................10
<PAGE>
Report of Independent Auditors
To the Buckeye Investment Committee
We have audited the accompanying statements of net assets available for benefits
of the Buckeye Retirement Plus Savings Plan (the Plan) as of June 30, 1997 and
1996, and the related statement of changes in net assets available for benefits
for the year ended June 30, 1997. These financial statements are the
responsibility of the Plan's management. Our responsibility is to express an
opinion on these financial statements based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. These standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for benefits of the Plan at June
30, 1997 and 1996, and the changes in net assets available for benefits for the
year ended June 30, 1997, in conformity with generally accepted accounting
principles.
Our audits were performed for the purpose of forming an opinion on the financial
statements taken as a whole. The accompanying supplemental schedules of assets
held for investment purposes as of June 30, 1997, and reportable transactions
for the year then ended are presented for purposes of complying with the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974, and are not a required part
of the financial statements. The fund information in the statements of net
assets available for benefits as of June 30, 1997 and 1996 and the statement of
changes in net assets available for benefits for the year ended June 30, 1997,
is presented for purposes of additional analysis rather than to present the net
assets available for benefits and changes in net assets available for benefits
of each fund. The supplemental schedules and fund information have been
subjected to the auditing procedures applied in our audits of the financial
statements and, in our opinion, are fairly stated in all material respects in
relation to the financial statements taken as a whole.
November 25, 1997
1
<PAGE>
<TABLE>
<CAPTION>
Buckeye Retirement Plus Savings Plan
Statement of Net Assets Available for Benefits,
with Fund Information
June 30, 1997
Fund Information
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Money Stock Growth Buckeye
Market Bond Balanced Index Stock Value Stock
Fund Fund Fund Fund Fund Fund Fund Total
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments at fair
value:
Mutual funds $424,679 $314,803 $1,424,177 $3,039,052 $7,613,634 $2,883,153 $ - $15,699,498
Common stock of Buckeye
Technologies Inc. - - - - - - 8,673,278 8,673,278
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Total investments 424,679 314,803 1,424,177 3,039,052 7,613,634 2,883,153 8,673,278 24,372,776
Contributions receivable:
Employer - - - - - - 1,818,461 1,818,461
Employee 7,998 2,955 12,538 30,801 54,498 50,445 20,627 179,862
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7,998 2,955 12,538 30,801 54,498 50,445 1,839,088 1,998,323
Cash and cash 1,288 1,184 15,861 7,266 24,642 317 439,759 490,317
equivalents
Accrued income 1,795 1,852 11,550 24 96 25 336 15,678
===========================================================================================================
Net assets available
for benefits $435,760 $320,794 $1,464,126 $3,077,143 $7,692,870 $2,933,940 $10,952,461 $26,877,094
===========================================================================================================
See accompanying notes.
</TABLE>
2
<PAGE>
<TABLE>
<CAPTION>
Buckeye Retirement Plus Savings Plan
Statements of Net Assets Available for Benefits,
with Fund Information
June 30, 1996
Fund Information
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Money Stock Growth Buckeye
Market Bond Balanced Index Stock Value Stock
Fund Fund Fund Fund Fund Fund Fund Total
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
Investments at fair value:
Mutual funds $408,590 $274,524 $1,214,842 $2,063,777 $6,245,364 $1,676,435 $ - $11,883,532
Common stock of Buckeye
Technologies Inc. - - - - - - 1,119,828 1,119,828
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Total investments 408,590 274,524 1,214,842 2,063,777 6,245,364 1,676,435 1,119,828 13,003,360
Contributions receivable:
Employer 759 279 1,289 2,305 9,521 2,221 2,379,605 2,395,979
Employee 1,842 2,267 26,408 64,275 170,074 102,191 67,704 434,761
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2,601 2,546 27,697 66,580 179,595 104,412 2,447,309 2,830,740
Cash and cash equivalents - 300 - 1,311 3,006 - 2,453,060 2,457,677
Accrued income 1,951 11 40 71 246 24 1,436 3,779
======================================================================================================
Net assets available
for benefits $413,142 $277,381 $1,242,579 $2,131,739 $6,428,211 $1,780,871 $6,021,633 $18,295,556
======================================================================================================
See accompanying notes.
</TABLE>
3
<PAGE>
<TABLE>
<CAPTION>
Buckeye Retirement Plus Savings Plan
Statement of Changes in Net Assets Available for Benefits,
with Fund Information
Year ended June 30, 1997
Fund Information
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Money Stock Growth Buckeye
Market Bond Balanced Index Stock Value Stock
Fund Fund Fund Fund Fund Fund Fund Total
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<S> <C> <C> <C> <C> <C> <C> <C> <C>
Additions to net assets
attributed to:
Investment income:
Net realized and
unrealized appreciation $ - $ 6,087 $ 192,343 $ 678,886 $ 617,825 $ 509,603 $ 1,607,221 $ 3,611,965
in fair value of
investments
Interest and dividends 20,827 19,945 62,511 86,214 793,743 150,406 3,175 1,136,821
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20,827 26,032 254,854 765,100 1,411,568 660,009 1,610,396 4,748,786
Contributions:
Employer - - - - - - 2,384,403 2,384,403
Employee 77,283 40,194 144,840 323,320 896,558 368,577 512,548 2,363,320
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77,283 40,194 144,840 323,320 896,558 368,577 2,896,951 4,747,723
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Total additions 98,110 66,226 399,694 1,088,420 2,308,126 1,028,586 4,507,347 9,496,509
Deductions from net assets
attributed to:
Benefits paid to participants 62,292 12,974 55,389 109,554 391,370 113,648 83,128 828,355
Administrative expenses 3,446 2,579 7,714 11,766 31,125 10,800 19,186 86,616
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Total deductions 65,738 15,553 63,103 121,320 422,495 124,448 102,314 914,971
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Net increase prior to
interfund transfers 32,372 50,673 336,591 967,100 1,885,631 904,138 4,405,033 8,581,538
Interfund transfers (net) (9,754) (7,260) (115,044) (21,696) (620,972) 248,931 525,795 -
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Net increase 22,618 43,413 221,547 945,404 1,264,659 1,153,069 4,930,828 8,581,538
Net assets available for
benefits:
Beginning of year 413,142 277,381 1,242,579 2,131,739 6,428,211 1,780,871 6,021,633 18,295,556
======================================================================================================
End of year $435,760 $320,794 $1,464,126 $3,077,143 $7,692,870 $2,933,940 $10,952,461 $26,877,094
======================================================================================================
See accompanying notes.
</TABLE>
4
<PAGE>
Buckeye Retirement Plus Savings Plan
Notes to Financial Statements
June 30, 1997
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1. DESCRIPTION OF PLAN
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The following description of the Buckeye Retirement Plus Savings Plan (the Plan)
provides only general information. Participants should refer to the Plan
agreement for a more complete description of the Plan's provisions.
GENERAL
The Plan is a contributory defined contribution plan covering all full-time
salaried and hourly employees of Buckeye Technologies Inc. (the Plan Sponsor),
formerly Buckeye Cellulose Corporation, and its wholly owned subsidiaries
Buckeye Florida, Limited Partnership and, effective June 30, 1996, Buckeye
Florida Corporation. Employees are eligible upon completion of 1,000 hours of
service during their first year of employment or during any plan year (July 1 to
June 30).
CONTRIBUTIONS
Employer--The Plan Sponsor may make a contribution equal to 4% of each
participant's annual gross compensation if certain financial goals are met.
Employee--All eligible participants may contribute up to 10% of gross
compensation to the Plan. Participants may also contribute a portion or all of
incentive compensation.
Contributions are subject to certain IRS limitations.
PARTICIPANT ACCOUNTS
Each participant's account is credited with the participant's contributions,
employer contribution, and allocations of Plan earnings and administrative
expenses. Earnings in each investment fund are allocated to participants'
accounts based on the relative value of the account balances prior to any
allocation of current year contributions.
VESTING
Participants are immediately vested in all contributions to the Plan plus actual
earnings thereon.
5
<PAGE>
Buckeye Retirement Plus Savings Plan
Notes to Financial Statements (continued)
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1. DESCRIPTION OF PLAN (continued)
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INVESTMENT OPTIONS
Upon enrollment in the Plan, a participant may direct employer and employee
contributions in 5% increments in any of the following seven investment options:
Money Market Fund--Funds are invested through a mutual fund in money market
instruments backed by the U.S. government.
Bond Fund--Funds are invested through a mutual fund in a diversified portfolio
of primarily U.S. government securities and high quality corporate bonds.
Balanced Fund--Funds are invested through a mutual fund in a combination of
common stocks, bonds and cash.
Stock Index Fund--Funds are invested through a mutual fund in stocks of the
Standard & Poor's 500 Index.
Growth Stock Fund--Funds are invested through a mutual fund in common stock of
companies with growth potential.
Value Fund--Funds are invested through a mutual fund in equity securities.
Buckeye Stock Fund--Funds are invested in the Plan Sponsor's common stock.
Participants may change their investment options quarterly.
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2. SIGNIFICANT ACCOUNTING POLICIES
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INVESTMENTS
Investments are stated at fair market value (based on quoted market prices) with
the change in carrying value reported as the net change in unrealized
appreciation or depreciation in aggregate fair value of investments. Purchases
and sales of investments are recorded on a trade-date basis. Interest income is
recorded on the accrual basis.
6
<PAGE>
Buckeye Retirement Plus Savings Plan
Notes to Financial Statements (continued)
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2. SIGNIFICANT ACCOUNTING POLICIES (continued)
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USE OF ESTIMATES
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions that
affect the amounts reported in the financial statements and accompanying notes.
Actual results could differ from those estimates.
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3. RELATED PARTY TRANSACTIONS
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The Plan purchased 233,431 and sold 17,166 shares of the Plan Sponsor's common
stock during the year. The stock held by the Plan at June 30, 1997 and 1996 had
a market value of $8,673,278 and $1,119,828, respectively. There were no other
transactions with related parties.
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4. DIFFERENCES BETWEEN FINANCIAL STATEMENTS AND FORM 5500
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The following is a reconciliation of net assets available for benefits per the
financial statements to the Form 5500:
June 30
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1997 1996
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Net assets available for benefits per
the financial statements $26,877,094 $18,295,556
Amounts allocated to withdrawn participants (79,191) (153,033)
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Net assets available for benefits per
the Form 5500 $26,797,903 $18,142,523
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The following is a reconciliation of benefits paid to participants per the
financial statements to the Form 5500:
Year ended
June 30, 1997
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Benefits paid to participants per the financial statements $828,355
Add: Amounts allocated on Form 5500 to
withdrawn participants at June 30, 1997 79,191
Less: Amounts allocated on Form 5500 to
withdrawn participants at June 30,1996 (153,033)
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Benefits paid to participants per the Form 5500 $ 754,513
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7
<PAGE>
Buckeye Retirement Plus Savings Plan
Notes to Financial Statements (continued)
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5. PLAN TERMINATION
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Although it has not expressed any intent to do so, the Plan Sponsor has the
right to terminate the Plan subject to the provisions of the Employee Retirement
Income Security Act of 1974 (ERISA). In the event of plan termination,
participants will be entitled to 100 percent of the value in their accounts.
- ---------------------
6. INCOME TAX STATUS
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The Internal Revenue Service ruled on June 30, 1995 that the Plan qualifies
under the applicable sections of the Internal Revenue Code (IRC) and the related
trust is, therefore, not subject to tax under present income tax law. The Plan,
which has been amended since receiving the determination letter, is required to
operate in conformity with the IRC to maintain its qualification. Management is
not aware of any course of action or series of events that have occurred that
might adversely affect the Plan's qualified status.
8
<PAGE>
Buckeye Retirement Plus Savings Plan
Item 27a - Schedule of Assets Held for Investment Purposes
June 30, 1997
Description of Investment
Including Maturity Date, Number
Rate of Interest, of Current
Par or Maturity Value Shares Cost Value
- --------------------------------------------------------------------------------
Federated Short Term U.S. Government
Treasury 424,679 $ 424,679 $ 424,679
Strong Government Securities Fund 30,154 312,083 314,803
Dodge and Cox Balanced Fund 21,651 1,172,775 1,424,177
Vanguard Institutional Index Fund 36,900 2,264,253 3,039,052
Janus Fund, Inc. 275,657 6,149,358 7,613,634
MAS Value Fund 152,629 2,354,307 2,883,153
*Buckeye Technologies Inc. common stock 256,986 6,862,381 8,673,278
============================
$19,539,836 $24,372,776
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* Denotes party-in-interest of the Plan.
9
<PAGE>
<TABLE>
<CAPTION>
Buckeye Retirement Plus Savings Plan
Item 27d--Schedule of Reportable Transactions
Year ended June 30, 1997
Current
Value of
Identity Asset Net
Description Number on Gain
of of of Purchase Selling Cost of Transaction or
Party Involved Investment Transactions Price Price Asset Date (Loss)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
CATEGORY (i)- SINGLE TRANSACTION IN EXCESS
OF 5 PERCENT OF PLAN ASSETS
Purchases of assets:
First Tennessee Bank* Buckeye Technologies Inc. 1 $1,013,976 $ - $1,013,976 $1,013,976 $ -
Sales of assets:
First Tennessee Bank* Fidelity Institutional 1 - 1,013,976 1,013,976 1,013,976 -
Cash U.S. Government
CATEGORY (iii) - SERIES OF TRANSACTIONS IN EXCESS
OF 5 PERCENT OF PLAN ASSETS
Purchases of assets:
First Tennessee Bank* Buckeye Technologies Inc. 147 4,926,966 - 4,926,966 4,926,966 -
Janus Fund 107 2,078,285 - 2,078,285 2,078,285 -
MAS Value Fund 106 1,106,258 - 1,106,258 1,106,258 -
Fidelity Institutional 548 6,684,625 - 6,684,625 6,684,625 -
Cash U.S. Government
Sales of assets:
First Tennessee Bank* Buckeye Technologies Inc. 32 - 416,586 388,564 416,586 28,022
Janus Fund 34 - 1,355,097 1,138,374 1,355,097 216,723
MAS Value Fund 26 - 415,071 379,838 415,071 35,233
Fidelity Institutional 475 - 7,484,918 7,484,918 7,484,918 -
Cash U.S. Government
There were no category (ii) or (iv) reportable transactions during 1997.
* Denotes party-in-interest of the plan.
</TABLE>
10
<PAGE>
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Retirement Plan Committee of the Employee Retirement Plans for Buckeye
Cellulose Corporation has duly caused this report to be signed on its behalf by
the undersigned, thereunto duly authorized.
BUCKEYE RETIREMENT PLUS SAVINGS PLAN
By: /s/ DAVID H. WHITCOMB
---------------------------------------------
David H. Whitcomb, Sr. Vice President-Finance
Date: December 19, 1997
BUCKEYE RETIREMENT PLUS SAVINGS PLAN
Exhibit Index
Exhibit No. Description
23 Consent of Independent Auditors
<PAGE>
Exhibit 23
Consent of Independent Auditors
We consent to the incorporation by reference in the Registration Statement (Form
S-8, Number 33-80865) pertaining to the Buckeye Retirement Plus Savings Plan of
our report dated November 25, 1997 with respect to the financial statements and
schedules of the Buckeye Retirement Plus Savings Plan included in this Annual
Report (Form 11-K) for the year ended June 30, 1997.
Ernst & Young LLP
Memphis, Tennessee
December 15, 1997
