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
January 30, 1995
(Date of Report, date of earliest event reported)
VALCOR, INC.
(Exact name of Registrant as specified in its charter)
Delaware 33-63044 74-2678674
(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 January 30, 1995, 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 January 30, 1995
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.
VALCOR, INC.
(Registrant)
By: /s/ Steven L. Watson
Steven L. Watson
Vice President & Secretary
Date: January 30, 1995
VALCOR'S OPERATING INCOME INCREASES 24%
DALLAS, TEXAS . . January 30, 1995 . . Valcor, Inc. reported net income of
$31.1 million for 1994, up 10% from $28.3 million for 1993. Operating income
for the year was up 24% to $66.3 million, on a 7% increase in sales to $375.4
million, as the Company's overall operating margin increased to 18%, up from 15%
in 1993. The improvements in sales, operating earnings and margins were
primarily driven by higher volume and higher average selling prices for medium
density fiberboard ("MDF"), the Company's principal building product. The
increase in 1994 interest expense resulted from the Company's recapitalization
completed during the last half of 1993. The Company lowered its effective tax
rate in 1994 primarily through improved utilization of foreign tax credits.
For the fourth quarter, both operating and net income increased 9% on a 7%
increase in sales. Higher MDF prices continued to aid both building products
operating results and the Company's overall operating margin. Other operating
earnings declined slightly in the fourth quarter primarily as a result of higher
expenses related to closing marginal fast food restaurants.
* * * *
SUMMARY OF OPERATIONS
<TABLE>
<CAPTION>
THREE MONTHS ENDED YEARS ENDED
DECEMBER 31, DECEMBER 31,
1993 1994 1993 1994
(IN MILLIONS)
<S> <C> <C> <C> <C>
Net sales
Building products $42.6 $46.9 $174.3 $189.9
Hardware products 17.8 17.5 64.4 70.0
Fast food 30.2 32.6 111.6 115.5
$90.6 $97.0 $350.3 $375.4
Operating income
Building products $ 6.7 $8.9 $ 26.3 $ 36.4
Hardware products 6.3 6.2 17.5 20.9
Fast food 3.5 2.9 9.7 9.0
Total operating income 16.5 18.0 53.5 66.3
Interest expense (3.2) (4.7) (6.4) (17.6)
Other, net (.1) (.4) .4 (.5)
Income before income taxes 13.2 12.9 47.5 48.2
Provision for income taxes 5.2 4.1 19.2 17.1
Net income $ 8.0 $ 8.8 $ 28.3 $ 31.1
</TABLE>
Valcor Inc., a wholly-owned subsidiary of publicly-traded Valhi, Inc.
(NYSE: VHI), is engaged in the building products, hardware products and fast
food industries. In connection with the registration of its 95/8% Senior Notes
due 2003, Valcor files periodic reports with the Securities and Exchange
Commission. The Company's 1994 results are subject to final audit.
