SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF
THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTER ENDED SEPTEMBER 30, 1995 COMMISSION FILE NUMBER 33-63044
------------------ --------
VALCOR, INC.
- ------------------------------------------------------------------------------
(Exact name of Registrant as specified in its charter)
DELAWARE 74-2678674
- ------------------------------- -------------------
(State or other jurisdiction of (IRS Employer
incorporation or organization) Identification No.)
5430 LBJ FREEWAY, SUITE 1700, DALLAS, TEXAS 75240-2697
- ------------------------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
REGISTRANT'S TELEPHONE NUMBER, INCLUDING AREA CODE: (214) 233-1700
--------------
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 AND (2) HAS BEEN SUBJECT TO SUCH FILING REQUIREMENTS FOR
THE PAST 90 DAYS. YES X NO
--- ---
THE REGISTRANT IS A WHOLLY-OWNED SUBSIDIARY OF VALHI, INC. (FILE NO. 1-5467) AND
MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTIONS H(1)(A) AND (B) OF FORM
10-Q FOR REDUCED DISCLOSURE FORMAT.
VALCOR, INC.
INDEX
PAGE
NUMBER
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements.
Consolidated Balance Sheets - December 31, 1994
and September 30, 1995 3-4
Consolidated Statements of Income - Three months and
nine months ended September 30, 1994 and 1995 5
Consolidated Statements of Cash Flows - Nine months
ended September 30, 1994 and 1995 6
Consolidated Statement of Stockholder's Equity -
Nine months ended September 30, 1995 7
Notes to Consolidated Financial Statements 8-11
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations. 12-15
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K. 16
VALCOR, INC.
CONSOLIDATED BALANCE SHEETS
(IN THOUSANDS)
<TABLE>
<CAPTION>
ASSETS DECEMBER 31, SEPTEMBER 30,
1994 1995
------------ -------------
<S> <C> <C>
Current assets:
Cash and cash equivalents $ 23,256 $ 11,916
Accounts and notes receivable 26,888 34,288
Receivable from affiliates 4,285 7,057
Inventories 31,016 39,225
Prepaid expenses 3,553 4,013
Deferred income taxes 1,595 2,541
-------- --------
Total current assets 90,593 99,040
-------- --------
Other assets:
Timber and timberlands 53,114 53,172
Intangible assets 19,202 18,150
Other 11,947 11,637
-------- --------
Total other assets 84,263 82,959
-------- --------
Property and equipment:
Land 19,186 22,276
Buildings 44,345 49,966
Equipment 177,790 181,456
Construction in progress 2,001 5,604
-------- --------
243,322 259,302
Less accumulated depreciation 97,483 108,401
-------- --------
Net property and equipment 145,839 150,901
-------- --------
$320,695 $332,900
======== ========
</TABLE>
VALCOR, INC.
CONSOLIDATED BALANCE SHEETS (CONTINUED)
(IN THOUSANDS)
<TABLE>
<CAPTION>
LIABILITIES AND STOCKHOLDER'S EQUITY DECEMBER 31, SEPTEMBER 30,
1994 1995
------------ -------------
<S> <C> <C>
Current liabilities:
Current maturities of long-term debt $ 12,738 $ 19,299
Accounts payable 16,207 21,804
Accrued liabilities 24,430 24,829
Payable to affiliates 69 -
Income taxes 1,318 872
-------- --------
Total current liabilities 54,762 66,804
-------- --------
Noncurrent liabilities:
Long-term debt 201,796 190,266
Deferred income taxes 25,938 27,369
Other 3,349 3,670
-------- --------
Total noncurrent liabilities 231,083 221,305
-------- --------
Stockholder's equity:
Common stock 1 1
Additional paid-in capital 520 520
Retained earnings 34,623 44,017
Currency translation adjustment (294) 253
-------- --------
Total stockholder's equity 34,850 44,791
-------- --------
$320,695 $332,900
======== ========
</TABLE>
[FN]
Commitments and contingencies (Note 8)
VALCOR, INC.
CONSOLIDATED STATEMENTS OF INCOME
(IN THOUSANDS)
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------ -------------------
1994 1995 1994 1995
---- ---- ---- ----
<S> <C> <C> <C> <C>
Revenues and other income:
Net sales $95,240 $95,144 $278,440 $298,124
Other, net 240 782 1,581 2,495
------- ------- -------- --------
95,480 95,926 280,021 300,619
------- ------- -------- --------
Costs and expenses:
Cost of sales 71,670 78,157 213,961 237,194
Selling, general and administrative 6,360 6,874 17,873 21,048
Interest 4,237 5,063 12,882 14,944
------- ------- -------- --------
82,267 90,094 244,716 273,186
------- ------- -------- --------
Income before income taxes 13,213 5,832 35,305 27,433
Provision for income taxes 4,203 2,249 12,975 10,367
------- ------- -------- --------
Net income $ 9,010 $3,583 $ 22,330 $ 17,066
======= ====== ======== ========
</TABLE>
VALCOR, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 1994 AND 1995
(IN THOUSANDS)
<TABLE>
<CAPTION>
1994 1995
---- ----
<S> <C> <C>
Cash flows from operating activities:
Net income $ 22,330 $ 17,066
Depreciation, depletion and amortization 13,007 14,735
Deferred income taxes 1,460 (44)
Other, net 341 1,361
-------- --------
37,138 33,118
Change in assets and liabilities:
Accounts and notes receivable (2,989) (7,599)
Inventories (336) (7,464)
Accounts payable and accrued liabilities 8,611 8,460
Accounts with affiliates (761) (2,841)
Other, net (410) (813)
-------- --------
Net cash provided by operating activities 41,253 22,861
-------- --------
Cash flows from investing activities:
Capital expenditures (37,791) (19,003)
Purchase of business unit - (5,982)
Other, net (245) (43)
-------- --------
Net cash used by investing activities (38,036) (25,028)
-------- --------
Cash flows from financing activities:
Indebtedness:
Borrowings 65,670 32,671
Principal payments (59,410) (37,640)
Dividends (5,824) (7,672)
Foreign government grants - 2,916
-------- --------
Net cash provided (used) by financing activitie 436 (9,725)
-------- --------
Net increase (decrease) 3,653 (11,892)
Currency translation (36) 552
Cash and cash equivalents at beginning of period 10,363 23,256
-------- --------
Cash and cash equivalents at end of period $ 13,980 $ 11,916
======== ========
Supplemental disclosures - cash paid for:
Interest, net of amount capitalized $ 9,811 $ 12,421
Income taxes 12,576 13,809
</TABLE>
VALCOR, INC.
CONSOLIDATED STATEMENT OF STOCKHOLDER'S EQUITY
NINE MONTHS ENDED SEPTEMBER 30, 1995
(IN THOUSANDS)
<TABLE>
<CAPTION>
ADDITIONAL CURRENCY TOTAL
COMMON PAID-IN RETAINED TRANSLATION STOCKHOLDER'S
STOCK CAPITAL EARNINGS ADJUSTMENT EQUITY
------- ----------- -------- ------------ --------------
<S> <C> <C> <C> <C> <C>
Balance at
December 31, 1994 $1 $520 $34,623 $(294) $34,850
Net income - - 17,066 - 17,066
Dividends - - (7,672) - (7,672)
Other - - - 547 547
-- ---- ------- ----- -------
Balance at
September 30, 1995 $1 $520 $44,017 $ 253 $44,791
== ==== ======= ===== =======
</TABLE>
VALCOR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTE 1 -BASIS OF PRESENTATION:
The consolidated balance sheet at December 31, 1994 has been condensed from
the Company's audited consolidated financial statements at that date. The
consolidated balance sheet at September 30, 1995 and the consolidated statements
of income, cash flows and stockholder's equity for the interim periods ended
September 30, 1994 and 1995 have been prepared by the Company, without audit.
In the opinion of management, all adjustments, consisting only of normal
recurring adjustments, necessary to present fairly the consolidated financial
position, results of operations and cash flows have been made. The results of
operations for the interim periods are not necessarily indicative of the
operating results for a full year or of future operations.
Certain information normally included in financial statements prepared in
accordance with generally accepted accounting principles has been condensed or
omitted. The accompanying consolidated financial statements should be read in
conjunction with the Company's Annual Report on Form 10-K for the year ended
December 31, 1994 (the "1994 Annual Report"). Commitments and contingencies are
discussed in Note 8, "Management's Discussion and Analysis of Financial
Condition and Results of Operations" and the 1994 Annual Report.
NOTE 2 -BUSINESS SEGMENT INFORMATION:
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------ ------------------
1994 1995 1994 1995
---- ---- ---- ----
(IN MILLIONS)
<S> <C> <C> <C> <C>
Net sales:
Building products - Medite
Corporation $49.6 $46.2 $143.0 $154.2
Hardware products - National
Cabinet Lock, Inc. 17.0 19.4 52.5 58.8
Fast food - Sybra, Inc. 28.6 29.5 82.9 85.1
----- ----- ------ ------
$95.2 $95.1 $278.4 $298.1
===== ===== ====== ======
Operating income:
Building products $10.8 $ 4.5 $ 27.5 $ 23.1
Hardware products 4.6 4.5 14.7 15.1
Fast food 2.2 2.0 6.1 4.9
----- ----- ------ ------
Total operating income 17.6 11.0 48.3 43.1
Interest expense (4.3) (5.0) (12.9) (14.9)
Corporate, net (.1) (.2) (.1) (.8)
----- ----- ------ ------
Income before income taxes $13.2 $ 5.8 $ 35.3 $ 27.4
===== ===== ====== ======
</TABLE>
NOTE 3 -INVENTORIES:
<TABLE>
<CAPTION>
DECEMBER 31, SEPTEMBER 30,
1994 1995
------------ -------------
(IN THOUSANDS)
<S> <C> <C>
Raw materials:
Building products $13,050 $14,190
Hardware products 1,313 2,170
Fast food 1,426 1,264
------- -------
15,789 17,624
------- -------
In process products:
Building products 1,481 2,116
Hardware products 4,437 4,524
------- -------
5,918 6,640
------- -------
Finished products:
Building products 2,711 7,491
Hardware products 2,510 2,871
------- -------
5,221 10,362
------- -------
Supplies 4,088 4,599
------- -------
$31,016 $39,225
======= =======
</TABLE>
NOTE 4 -ACCRUED LIABILITIES:
<TABLE>
<CAPTION>
DECEMBER 31, SEPTEMBER 30,
1994 1995
------------ -------------
(IN THOUSANDS)
<S> <C> <C>
Current accrued liabilities:
Employee benefits $ 9,978 $ 7,995
Interest 2,221 4,121
Insurance claims and expenses 3,412 2,570
Equipment purchases 2,157 109
Miscellaneous taxes 1,548 2,551
Other 5,114 7,483
------- -------
$24,430 $24,829
======= =======
Other noncurrent liabilities:
Insurance claims and expenses $ 1,339 $ 1,341
Accrued OPEB cost 298 298
Other 1,712 2,031
------- -------
$ 3,349 $ 3,670
======= =======
</TABLE>
NOTE 5 - LONG-TERM DEBT:
<TABLE>
<CAPTION>
DECEMBER 31, SEPTEMBER 30,
1994 1995
------------ -------------
(IN THOUSANDS)
<S> <C> <C>
Valcor - 9 5/8% Senior Notes Due 2003 $100,000 $100,000
-------- --------
Medite:
Bank term loans 89,411 73,770
Bank working capital facilities 8,802 10,906
Other 4,360 4,204
-------- --------
102,573 88,880
-------- --------
Other:
Sybra bank credit agreements 5,500 15,003
Sybra capital leases 6,321 5,574
National Cabinet Lock capital leases 140 108
-------- --------
11,961 20,685
-------- --------
214,534 209,565
Less current maturities 12,738 19,299
-------- --------
$201,796 $190,266
======== ========
</TABLE>
NOTE 6 - INTANGIBLE AND OTHER NONCURRENT ASSETS:
<TABLE>
<CAPTION>
DECEMBER 31, SEPTEMBER 30,
1994 1995
------------ -------------
(IN THOUSANDS)
<S> <C> <C>
Intangible assets:
Goodwill $ 5,328 $ 5,202
Franchise fees 6,299 5,833
Other 7,575 7,115
------- -------
$19,202 $18,150
======= =======
Other assets:
Deferred financing costs $ 3,537 $ 3,160
Prepaid pension cost 4,363 4,415
Other 4,047 4,062
------- -------
$11,947 $11,637
======= =======
</TABLE>
NOTE 7 - PROVISION FOR INCOME TAXES:
<TABLE>
<CAPTION>
NINE MONTHS ENDED
SEPTEMBER 30,
------------------
1994 1995
---- ----
(IN MILLIONS)
<S> <C> <C>
Expected tax expense $12.4 $ 9.6
Non-U.S. tax rates (1.4) (2.8)
Incremental tax on non-U.S. earnings 1.5 3.2
State income taxes and other, net .5 .4
----- -----
$13.0 $10.4
===== =====
</TABLE>
NOTE 8 -COMMITMENTS AND CONTINGENCIES:
At September 30, 1995, the estimated cost to complete capital projects in
process (principally new Sybra stores) approximated $2 million.
Medite has entered into interest rate swaps to mitigate the impact of
changes in interest rates for $26 million of its U.S. bank term loan due in
1998-2000 that results in a weighted average interest rate of 7.6% for such
borrowings. At September 30, 1995, the fair value of the interest rate swaps,
based upon quotes obtained from the counter party financial institution, is a
$.7 million receivable, representing the estimated amount Medite would receive
if it were to terminate the swap agreements at that date.
The Company's Irish and Canadian subsidiaries have entered into the
equivalent of approximately $5 million of forward currency contracts to mitigate
certain exchange rate fluctuation risk for a portion of their future sales
denominated in European Currency Units and U.S. dollars. These contracts expire
throughout 1995 and the counter parties are major international financial
institutions. At September 30, 1995, the aggregate fair value of these
contracts, based upon quotes obtained from the counter party institutions,
approximated the aggregate contract amount.
For information concerning legal proceedings, see Valcor's Quarterly Report
on Form 10-Q for the quarter ended June 30, 1995 and the 1994 Annual Report.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS
RESULTS OF OPERATIONS:
OVERVIEW
Net income was $17.1 million for the first nine months of 1995 compared to
$22.3 million for the first nine months of 1994. Third quarter net income was
$3.6 million, down from $9 million in 1994. Lower MDF volumes and margins
contributed significantly to the relative decline in third quarter earnings.
BUILDING PRODUCTS
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, % SEPTEMBER 30, %
------------------- ------------------
1994 1995 CHANGE 1994 1995 CHANGE
---- ---- ------ ---- ---- ------
(IN MILLIONS) (IN MILLIONS)
<S> <C> <C> <C> <C> <C> <C>
Net sales:
Medium density fiberboard $34.2 $31.8 - 7% $ 97.7 $114.8 +17%
Traditional timber products 15.7 15.3 - 2% 46.2 41.1 -11%
Eliminations (.3) (.9) (.9) (1.7)
----- ----- ------ ------
$49.6 $46.2 - 7% $143.0 $154.2 + 8%
===== ===== ====== ======
Operating income:
Medium density fiberboard $ 7.2 $ 2.1 -71% $ 20.2 $ 18.9 - 6%
Traditional timber products 3.6 2.4 -31% 7.3 4.2 -42%
----- ----- ------ ------
$10.8 $ 4.5 -58% $ 27.5 $ 23.1 -16%
===== ===== ====== ======
Operating income margins:
Medium density fiberboard 21% 7% 21% 17%
Traditional timber products 23% 16% 16% 10%
Aggregate margin 22% 10% 19% 15%
</TABLE>
Average MDF selling prices for the first nine months of 1995 were 18% above
year-ago levels (16% in billing currency terms) with aggregate volume down
nominally. For the quarter, MDF prices were up 4% with volume down 11% compared
to 1994. Compared to the second quarter of 1995, third quarter 1995 MDF sales
volume was down 8% with average prices down 7%. Increases in industry capacity,
particularly in Europe, and slower economic growth in North America and Europe
contributed to lower MDF prices and operating rates.
MDF margins declined in 1995 as a 25% increase in per-unit costs, due to
higher material costs and lower capacity utilization, more than offset higher
selling prices. Increased wood costs have been influenced in part by competing
demand from paper and pulp producers while higher resin costs have moderated
slightly. Fluctuations in the value of the U.S. dollar relative to other
currencies accounted for about two percentage points of the 1995 increases in
both MDF selling prices and per-unit MDF costs.
Traditional timber products results declined in 1995 as significantly lower
log sales volume and lower lumber selling prices more than offset higher veneer
volume and selling prices and the favorable effect on costs of using a higher
mix of lower-cost fee timber.
Due to uncertainty regarding near-term economic conditions in both North
America and Europe and additional new MDF industry capacity expected later this
year, the Company does not expect significant near-term improvement in the MDF
market.
HARDWARE PRODUCTS
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------- ------------------
1994 1995 % CHANGE 1994 1995 % CHANGE
---- ---- -------- ---- ---- --------
(IN MILLIONS) (IN MILLIONS)
<S> <C> <C> <C> <C> <C> <C>
Net sales $17.0 $19.4 +14% $52.5 $58.8 +12%
Operating income 4.6 4.5 - 1% 14.7 15.1 + 3%
Operating income margin 27% 24% 28% 26%
</TABLE>
Volumes have continued to increase in workstation and drawer slide product
lines while lock volume from a government contract completed earlier this year
has been only partially replaced. Operating margins were impacted by certain
higher costs not fully recovered by responsive selling price increases as well
as costs associated with integrating the operations of a Canadian competitor
acquired in August 1995. The acquired operations generated approximately $1
million of sales in the third quarter.
FAST FOOD
<TABLE>
<CAPTION>
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
------------------- ------------------
1994 1995 % CHANGE 1994 1995 % CHANGE
---- ---- -------- ---- ---- --------
(IN MILLIONS) (IN MILLIONS)
<S> <C> <C> <C> <C> <C> <C>
Net sales $28.6 $29.5 +3% $82.9 $85.1 + 3%
Operating income 2.2 2.0 -8% 6.1 4.9 -19%
Operating income margin 7% 7% 7% 6%
</TABLE>
Comparable store sales were up 1% in the third quarter, reversing the
downward comparisons of the first half of 1995 and resulting in year-to-date
comparable sales approximating 1994. Despite stable to lower food costs,
competitive promotions and discounts along with higher labor costs continue to
hamper operating results.
During the first nine months of 1995, Sybra opened six new stores and
closed twelve stores and at September 30, 1995 operated 156 Arby's restaurants.
Sybra opened one store in October, has three other stores under construction and
may close three to five more under-performing restaurants by year-end. Sybra
also intends to test dual branding by adding the ZUZU Mexican concept to two of
its larger Arby's restaurants by early 1996.
OTHER
Interest expense increased due to higher average borrowing levels
associated primarily with facilities expansion and higher average variable
borrowing rates. Approximately $151 million of the Company's indebtedness bears
interest at fixed rates averaging 9.1%. The average interest rate on the $59
million of variable rate borrowings outstanding at September 30, 1995 was 7.7%
(7.8% at December 31, 1994 and 5.4% at December 31, 1993).
Income tax rates vary by jurisdiction (country and/or state) and relative
changes in the geographic source of the Company's pre-tax earnings, and in the
related availability and usage of foreign tax credits, can result in
fluctuations in the effective income tax rate. See Note 7 to the Consolidated
Financial Statements.
LIQUIDITY AND CAPITAL RESOURCES:
Cash flows from operating activities. Cash flow from operating activities
before changes in assets and liabilities in 1995 declined approximately $4
million from that of the same period in 1994 reflecting the decline in earnings.
Changes in working capital levels used $10 million of cash in 1995 compared to
providing $4 million in the 1994 period. The relative changes in inventory
levels related in large part to finished MDF as production volume was
approximately 6% greater than MDF sales volume during the first nine months of
1995 whereas production only slightly exceeded sales in the comparable 1994
period. Higher receivables levels in 1995 resulted in part from increased sales
into certain non-core MDF markets.
Cash flows from investing and financing activities. Lower capital spending
resulting from completion of the Irish MDF plant expansion was offset in part by
higher spending for new Sybra stores. Capital expenditures for calendar 1995
are estimated at $32 million, down from $46 million in 1994.
Net repayments of indebtedness in 1995 included $8 million of scheduled
payments under Medite's U.S. bank term loan while net borrowings in the 1994
period included $12 million of project financing for Medite's Irish MDF plant
expansion. Unused credit available under existing credit facilities
approximated $35 million at September 30, 1995. Medite recently extended the
maturity of its $15 million U.S. bank revolver one year to September 1997 and
certain financial coventants in Sybra's bank credit agreement were amended
effective September 1995.
Other. In addition to the 1994 completion of the second MDF production
line in Ireland, Medite intends to continue the upgrading and debottlenecking of
its existing MDF facilities. The Company also continues to explore additional
expansion and/or acquisition opportunities for its hardware products business
and, in this regard, in August 1995 acquired the assets of a Canadian competitor
for approximately $6 million.
Sybra's Consolidated Development Agreement with Arby's, Inc. requires Sybra
to open another 14 stores through 1997 in its existing markets in order to
retain its exclusive development rights in the Dallas/Ft. Worth, Texas area.
Sybra's currently planned expansion program is designed to meet or exceed the
CDA requirements.
Valcor's operations are conducted through its subsidiaries (Medite,
National Cabinet Lock and Sybra). Accordingly, Valcor's long-term ability to
meet its parent company level obligations (principally debt service on the
Senior Notes) is largely dependent on the receipt of dividends or other
distributions from its subsidiaries. Various credit agreements to which
operating subsidiaries are parties contain customary limitations on the payment
of dividends, typically a percentage of net income or cash flow. Valcor has not
guaranteed any indebtedness of its subsidiaries. The Company believes that
future distributions from its subsidiaries will be sufficient to enable Valcor
to meet its obligations. Valcor dividends to Valhi are generally limited to 50%
of consolidated net income, as defined in the Senior Note Indenture.
The Company routinely compares its liquidity requirements and alternative
uses of capital against the estimated future cash flows to be received from its
subsidiaries and the estimated sales value of those units. As a result of this
process, the Company may in the future seek to raise additional capital,
refinance or restructure indebtedness, modify its dividend policy, consider the
sale of interests in subsidiaries, business units or other assets, or take a
combination of such steps or other steps, to increase liquidity, reduce
indebtedness and fund future activities. The Company may also evaluate
acquisitions of interests in, or combinations with, companies related to its
current businesses. The Company intends to consider such activities in the
future and, in connection therewith, may consider issuing additional equity
securities and/or increasing indebtedness. In this regard, the Senior Note
Indenture contains limitations on the Company's ability to incur additional
indebtedness or hold noncontrolling interests in business units.
PART II. OTHER INFORMATION
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K.
(a) Exhibits
27.1 - Financial Data Schedule for the nine-month period ended
September 30, 1995.
(b) Reports on Form 8-K
Reports on Form 8-K for the quarter ended September 30, 1995 and the
month of October 1995:
July 24, 1995 - Reported Items 5 and 7.
October 23, 1995 - Reported Items 5 and 7.
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.
VALCOR, INC.
---------------------------------
(Registrant)
Date November 10, 1995 By /s/ William C. Timm
--------------------- ------------------------------
William C. Timm
Vice President - Finance and
Treasurer
(Chief Financial Officer)
Date November 10, 1995 By /s/ J. Thomas Montgomery, Jr.
--------------------- -----------------------------
J. Thomas Montgomery, Jr.
Vice President and Controller
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THE SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM VALCOR,
INC.'S CONSOLIDATED FINANCIAL STATEMENTS FOR THE NINE MONTHS ENDED SEPTEMBER 30,
1995, AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH CONSOLIDATION
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 11,916
<SECURITIES> 0
<RECEIVABLES> 34,677
<ALLOWANCES> 799
<INVENTORY> 39,225
<CURRENT-ASSETS> 99,040
<PP&E> 259,302
<DEPRECIATION> 108,401
<TOTAL-ASSETS> 332,900
<CURRENT-LIABILITIES> 66,804
<BONDS> 190,266
<COMMON> 1
0
0
<OTHER-SE> 44,790
<TOTAL-LIABILITY-AND-EQUITY> 332,900
<SALES> 298,124
<TOTAL-REVENUES> 298,124
<CGS> 237,194
<TOTAL-COSTS> 237,194
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 284
<INTEREST-EXPENSE> 14,944
<INCOME-PRETAX> 27,433
<INCOME-TAX> 10,367
<INCOME-CONTINUING> 17,066
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 17,066
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
