<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 1996
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number
TRANSTAR HOLDINGS, L.P.
TRANSTAR CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 13-3486874
DELAWARE 13-3745313
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
345 PARK AVENUE
NEW YORK, NY 10154
(Address and zip code of principal executive offices)
(212) 935-2626
(Registrant's telephone number, including area code)
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
--- ---
<PAGE> 2
Transtar Holdings, L.P.
Transtar Capital Corporation
Form 10-Q
Quarterly Period Ended June 30, 1996
INDEX
<TABLE>
<CAPTION>
PAGE
----
<S> <C>
PART I - FINANCIAL INFORMATION
A. TRANSTAR HOLDINGS, L.P.
Consolidated Balance Sheet 3
Consolidated Statements of Income and Partners' Equity 4
Consolidated Statement of Cash Flows 5
Notes to Consolidated Financial Statements 6
Management's Discussion and Analysis of Financial
Condition and Results of Operations 7
B. TRANSTAR, INC.
Consolidated Balance Sheet 8
Consolidated Statements of Income and Retained Earnings 9
Consolidated Statement of Cash Flows 10
Notes to Consolidated Financial Statements 11
Management's Discussion and Analysis of Financial
Condition and Results of Operations 12
PART II - OTHER INFORMATION 14
SIGNATURE 15
</TABLE>
<PAGE> 3
PART I - FINANCIAL INFORMATION
A. TRANSTAR HOLDINGS, L.P.
TRANSTAR HOLDINGS, L.P.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
-------- ------------
(dollars in thousands)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 22 $ 95
Other current assets 166 365
--------- ---------
Total current assets 188 460
Restricted cash 22,466 23,096
Investment in Transtar (5,009) (15,417)
Other assets 5,474 5,843
--------- ---------
Total assets $ 23,119 $ 13,982
========= =========
LIABILITIES
Current liabilities:
Accounts payable and other current liabilities $ 297 $ 615
Long-term debt 139,411 130,673
--------- ---------
Total liabilities 139,708 131,288
PARTNERS' EQUITY (DEFICIT) (116,589) (117,306)
--------- ---------
Total liabilities and partners' equity $ 23,119 $ 13,982
========= =========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
3
<PAGE> 4
TRANSTAR HOLDINGS, L.P.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
-------------------- ---------------------
1996 1995 1996 1995
---- ---- ---- ----
(dollars in thousands) (dollars in thousands)
<S> <C> <C> <C> <C>
Revenues $ -- $ -- $ -- $ --
------- ------- ------- -------
Operating expenses:
Selling, general and administrative expenses 152 147 282 309
------- ------- ------- -------
Operating (loss) (152) (147) (282) (309)
Interest income 292 1 597 3
Interest and other financial expenses (4,577) (4,044) (9,106) (8,045)
------- ------- ------- -------
(Loss) before equity in earnings of Transtar (4,437) (4,190) (8,791) (8,351)
Equity in earnings of Transtar 10,061 10,289 10,408 10,855
------- ------- ------- -------
Net income $ 5,624 $ 6,099 $ 1,617 $ 2,504
======= ======== ======= =======
</TABLE>
CONSOLIDATED STATEMENT OF PARTNERS' EQUITY
(UNAUDITED)
<TABLE>
<S> <C> <C> <C> <C>
Partners' equity (deficit), beginning of period ($122,213) ($128,469) ($117,306) ($124,907)
Distribution to partners -- -- (900) --
Net income 5,624 6,099 1,617 2,504
Other adjustments to partners' equity -- 33 -- 66
--------- --------- --------- ---------
Partners' equity (deficit), end of period ($116,589) ($122,337) ($116,589) ($122,337)
========= ========= ========= =========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
4
<PAGE> 5
TRANSTAR HOLDINGS, L.P.
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six months ended
June 30,
--------------------
1996 1995
---- ----
(dollars in thousands)
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 1,617 $ 2,504
Adjustments to reconcile to net cash (used)
by operating activities:
Amortization 199 264
Non-cash interest and other financial expenses 9,106 8,045
Non-cash interest income (595) --
Equity in earnings of Transtar (10,408) (10,855)
Changes in:
Accounts payable (317) (420)
-------- --------
Net cash (used) by operating activities (398) (462)
-------- --------
INVESTING ACTIVITIES:
Net cash provided by investing activities -- --
-------- --------
FINANCING ACTIVITIES:
Distribution to partners (900) --
Withdrawal from restricted cash 1,225 --
-------- --------
Net cash provided by financing activities 325 --
-------- --------
(Decrease) in cash and cash equivalents (73) (462)
Cash and cash equivalents at beginning of period 95 465
-------- --------
Cash and cash equivalents at end of period $ 22 $ 3
======== ========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
5
<PAGE> 6
TRANSTAR HOLDINGS, L.P.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
JUNE 30, 1996
NOTE 1: BASIS OF FINANCIAL STATEMENT PRESENTATION:
The accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial statements
and with the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all normal recurring adjustments considered
necessary for a fair statement of the results of operations for the three and
six month periods ended June 30, 1996 have been included. The results of
operations for the three and six month periods ended June 30, 1996 are not
necessarily indicative of the results of operations for the full year. When
reading the financial information contained in this Quarterly Report, reference
should be made to the financial statements, schedules and notes contained in
Transtar Holdings, L.P.'s (Holdings) Annual Report on Form 10-K for the year
ended December 31, 1995. Transtar Capital Corporation (TCC), a subsidiary of
Holdings, is a shell corporation which has nominal assets and no liabilities,
operations or cash flows. Accordingly, the financial statements of TCC are not
presented because they do not provide material information to investors.
NOTE 2: LONG-TERM DEBT:
On December 7, 1993, Holdings and TCC (Issuers) issued $218 million aggregate
principal amount of 13.375% Senior Discount Notes due December 15, 2003 (Notes).
The Notes are the joint and several obligations of the Issuers. An original
issue discount of $118 million will be amortized over a six year period
commencing December 15, 1993 and ending December 15, 1999. Interest will be
payable semi-annually in arrears on June 15 and December 15 commencing on June
15, 2000. The Notes have a principal at maturity of $218 million. The carrying
value represents the principal at maturity less the unamortized discount. The
Notes are not guaranteed by Transtar, Inc. (Transtar) or any of its subsidiaries
and are subordinated to all existing and future liabilities of the Issuers'
subsidiaries. Interest expense attributable to the Notes was $8.7 million and
$7.7 million in the first half of 1996 and 1995, respectively, and was $4.4
million and $3.9 million in the second quarter of 1996 and 1995, respectively.
NOTE 3: RELATED PARTY TRANSACTIONS:
In 1995, Transtar declared two cash dividends, each in the amount of
$1,450 per share, on both its Class A Voting Common Stock and its Class B
Nonvoting Common Stock to holders of record of the stock on October 27, 1995.
The first dividend was paid on October 31, 1995 and the second was paid on
December 29, 1995. Holdings received $14.8 million on October 31, 1995 and $14.8
million on December 29, 1995, representing its 53% economic interest in the
Transtar dividend. Pursuant to an Indenture Agreement relating to the issuance
of the Notes (the Notes Indenture), the first dividend payment was paid into an
escrow account. In accordance with the Notes Indenture and the agreement
governing the escrow account, Holdings distributed $6.2 million of the first
dividend payment to its partners and $0.4 million was used to pay administrative
expenses in 1995.
In accordance with the Notes Indenture, the second dividend payment was
paid into the escrow account. In the first half of 1996, Holdings distributed
$0.9 million to its partners, and used $0.3 million to pay administrative
expenses. Holdings offered to repurchase a portion of the Senior Discount Notes
at an offer price equal to 101% of the accreted value of such notes on the date
of purchase. The offer to purchase the notes was made by a notice to holders of
the Senior Discount Notes and was held open for 20 business days. No Notes were
tendered for repurchase.
Funds in the escrow account are invested in cash equivalents and may
only be released to pay interest and principal on the Notes, make a Restricted
Payment (as defined by the Notes Indenture), purchase or optimally redeem Notes
or to pay administrative expenses of Holdings. Interest earned on the escrow
balance amounted to $0.6 million in the first half of 1996, and $0.3 million in
the second quarter of 1996.
6
<PAGE> 7
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Management's Discussion and Analysis of Financial Condition and Results of
Operations includes an analysis of Holdings' equity investment in Transtar.
Holdings is a Delaware limited partnership. It was originally formed in 1988 as
Blackstone Transportation Partners L. P. ("BTP") for the sole purpose of holding
voting and non-voting stock of Transtar. BTP was renamed Transtar Holdings, L.P.
in November 1993. Holdings earnings are derived solely from its 53.0% economic
interest in Transtar. The following discussion should be read in conjunction
with Holdings' Consolidated Financial Statements and the notes related hereto
included within this filing.
Transtar Holdings Results
For the Three and Six Months ended June 30, 1996
Compared to
Three and Six Months ended June 30, 1995
Overall
Holdings recorded net income for the second quarter and the first half of 1996
of $5.6 and $1.6 million, respectively. This represents a decrease of $0.5 and
$0.9 million, respectively, from the $6.1 and $2.5 million of net income
recorded during the second quarter and the first half of 1995. Holdings' results
reflect its equity investment in Transtar. For a discussion of results of
operations of Transtar, see "Management's Discussion and Analysis of Financial
Condition and Results of Operations" for Transtar, Inc.
Revenues and Expenses
Holdings did not record any revenues in either 1996 or 1995. Holdings' selling,
general and administrative expenses remained constant in the second quarter and
the first half at $0.2 million and $0.3 million, respectively. Interest and
other financial expenses increased by $0.6 and $1.1 million, respectively,
during the second quarter and first half from the $4.0 and $8.0 million reported
for the similar periods last year.
Liquidity and Capital Resources
In 1995, Transtar declared two cash dividends, each in the amount of $1,450 per
share, on both its Class A Voting Stock and its Class B Nonvoting Common Stock
to holders of record of the stock. Holdings received two equal dividends
totaling $29.6 million, representing its 53% economic interest in Transtar.
Pursuant to the Notes Indenture, the first dividend was paid into an escrow
account. In accordance with the Notes and the agreement governing the escrow
account, Holdings distributed $6.2 million of the first dividend payment to its
partners and $0.4 million was used to pay administrative expenses in 1995.
Additionally, in accordance with the Notes Indenture, the second dividend was
paid into the escrow account. In the first six months of 1996, Holdings
distributed $0.9 million to its partners and paid $0.3 million of administrative
expenses. In January, 1996, Holdings offered to repurchase a portion of its
Senior Discount Notes at an offer price equal to 101% of the accreted value of
such notes on the date of purchase. The offer to purchase the notes was made by
a notice to holders of the Senior Discount Notes and was held open for 20
business days. No notes were tendered for repurchase. Holdings earned interest
from the balance in the escrow account for the second quarter and the first half
of 1996 of $0.3 and $0.6 million, respectively.
The only business activity of Holdings is its investment in Transtar. Holdings
does not require any additional liquidity or capital resources, other than for
professional fees and certain other administrative expenses, until the first
cash interest payment is due on the Notes on June 15, 2000.
7
<PAGE> 8
B. TRANSTAR, INC.
TRANSTAR, INC.
CONSOLIDATED BALANCE SHEET
(UNAUDITED)
<TABLE>
<CAPTION>
June 30, December 31,
1996 1995
-------- ------------
(dollars in thousands)
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents $ 6,803 $ 10,618
Accounts receivable from related parties 17,817 15,562
Accounts receivable from others 58,067 49,670
Other current assets 10,519 4,528
-------- --------
Total current assets 93,206 80,378
Property, plant, and equipment,
less accumulated depreciation 389,611 395,943
Operating parts and supplies 21,508 18,271
Other assets 18,905 18,359
-------- --------
Total assets $523,230 $512,951
======== ========
LIABILITIES
Current liabilities:
Accounts payable $ 56,149 $ 51,382
Payroll and benefits payable 35,922 34,071
Accrued taxes 17,313 10,234
Accrued interest 2,921 4,360
Borrowings under revolving credit agreement 10,000 20,000
Current portion of long-term debt 27,208 15,813
Other current liabilities 3,123 1,504
-------- --------
Total current liabilities 152,636 137,364
Long-term debt less current portion 237,800 265,203
Postretirement benefits other than pensions 100,175 98,659
Deferred credits and other liabilities 41,654 40,614
-------- --------
Total liabilities 532,265 541,840
Commitments and contingencies
STOCKHOLDERS' EQUITY
Common stock 1,000 1,000
Paid-in capital 24,442 24,231
Retained earnings (deficit) (28,204) (47,847)
Treasury stock (6,273) (6,273)
-------- --------
Total stockholders' equity (9,035) (28,889)
-------- --------
Total liabilities and stockholders' equity $523,230 $512,951
======== ========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
8
<PAGE> 9
TRANSTAR, INC.
CONSOLIDATED STATEMENT OF INCOME
(UNAUDITED)
<TABLE>
<CAPTION>
Three months ended Six months ended
June 30, June 30,
------------------------ ---------------------
1996 1995 1996 1995
---- ---- ---- ----
(dollars in thousands) (dollars in thousands)
<S> <C> <C> <C> <C>
Revenues from related parties $ 81,834 $ 78,822 $131,647 $132,755
Revenues from others 53,385 56,208 99,339 96,846
-------- -------- -------- --------
Total revenues 135,219 135,030 230,986 229,601
-------- -------- -------- --------
Operating expenses (excluding items shown below) 90,752 88,187 170,441 165,493
Selling, general, and administrative expenses 2,649 2,681 5,406 5,215
Depreciation and amortization 6,677 6,715 13,401 13,486
-------- -------- -------- --------
Total operating expenses 100,078 97,583 189,248 184,194
-------- -------- -------- --------
Operating income 35,141 37,447 41,738 45,407
Other income 240 141 474 232
Interest income 201 248 339 477
Interest and other financial expenses (5,385) (6,434) (10,963) (12,652)
-------- -------- -------- --------
Income before income taxes 30,197 31,402 31,588 33,464
Less provision for income taxes 11,209 11,990 11,945 12,983
-------- -------- -------- --------
Net income $ 18,988 $ 19,412 $ 19,643 $ 20,481
======== ======== ======== ========
</TABLE>
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
(UNAUDITED)
<TABLE>
<S> <C> <C> <C> <C>
Retained earnings (deficit), beginning of period ($47,192) ($49,612) ($47,847) ($50,681)
Net income 18,988 19,412 19,643 20,481
-------- -------- -------- --------
Retained earnings (deficit), end of period ($28,204) ($30,200) ($28,204) ($30,200)
======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
9
<PAGE> 10
TRANSTAR, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS
(UNAUDITED)
<TABLE>
<CAPTION>
Six months ended
June 30,
--------------------
1996 1995
---- ----
(dollars in thousands)
<S> <C> <C>
OPERATING ACTIVITIES:
Net income $ 19,643 $ 20,481
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 13,401 13,486
Amortization 371 418
Deferred taxes 1,347 3,542
(Gain) on sale of assets (1) (7)
Changes in other assets and liabilities (5,500) 2,621
-------- --------
Net cash provided by operating activities 29,261 40,541
-------- --------
INVESTING ACTIVITIES:
Capital expenditures (8,081) (7,810)
Proceeds from the sale of assets 1,013 2,608
-------- --------
Net cash used for investing activities (7,068) (5,202)
-------- --------
FINANCING ACTIVITIES:
Repayment of debt (26,008) (43,098)
-------- --------
Net cash used for financing activities (26,008) (43,098)
-------- --------
Decrease in cash and cash equivalents (3,815) (7,759)
Cash and cash equivalents at beginning of period 10,618 20,464
-------- --------
Cash and cash equivalents at end of period $ 6,803 $ 12,705
======== ========
</TABLE>
The accompanying notes are an integral part of these consolidated financial
statements.
10
<PAGE> 11
TRANSTAR, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(UNAUDITED)
JUNE 30, 1996
NOTE 1: BASIS OF FINANCIAL STATEMENT PRESENTATION:
Separate consolidated financial statements of Transtar are included in this 10-Q
because Transtar is a majority owned subsidiary of Holdings which is not
consolidated in the consolidated financial statements of Holdings. The
accompanying unaudited financial statements have been prepared in accordance
with generally accepted accounting principles for interim financial statements
and with the instructions to Form 10-Q and Article 10 of Regulation S-X.
Accordingly, they do not include all of the information and footnotes required
by generally accepted accounting principles for complete financial statements.
In the opinion of management, all normal recurring adjustments considered
necessary for a fair statement of the results of operations for the three and
six month periods ended June 30, 1996 have been included. The results of
operations for the three and six month periods ended June 30, 1996 are not
necessarily indicative of the results of operations for the full year. When
reading the financial information contained in this Quarterly Report, reference
should be made to the Transtar financial statements, schedules and notes
contained in Holdings' Annual Report on Form 10-K for the year ended December
31, 1995.
NOTE 2: IMPAIRMENT OF LONG-LIVED ASSETS:
Effective January 1, 1996, Transtar adopted Statement of Financial Accounting
Standards No. 121, "Accounting for the Impairment of Long-Lived Assets and for
Long-Lived Assets to Be Disposed Of" (SFAS No. 121). SFAS 121 requires that
long-lived assets be reviewed for impairment and written down to fair value
whenever events or changes in circumstances indicate that the carrying value may
not be recoverable. Adoption of SFAS No. 121 had no material effect on the
results of operations or financial position of Transtar.
11
<PAGE> 12
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND
RESULTS OF OPERATIONS
Transtar Results
For the Three and Six Months ended June 30, 1996
Compared to the
Three and Six Months ended June 30, 1995
Overall
Transtar is a transportation holding company composed of three business groups:
the Railroad Group, the Great Lakes Fleet (Fleet) and the Barge Group.
Transtar's net income for the quarter ending June 30, 1996 totaled $19.0
million, a decrease of $0.4 million compared with the same period of 1995.
Operating income of $35.1 million recorded for the second quarter of 1996 was
$2.3 million less than the comparable period of 1995. Net income for the six
months ended June 30, 1996 was $19.6 million, an $0.8 million decrease from the
first half of 1995. Operating income of $41.7 million during the first half of
1996 was $3.7 million less than the same period of 1995.
Operating Revenues
Operating revenues totaled $135.2 million for the second quarter of 1996, which
reflected a slight increase of $0.2 million over the second quarter of 1995. For
the first six months of 1996, Transtar's operating revenues were $231.0 million,
an increase of $1.4 million over the same period of 1995. The first half revenue
increase was driven by the Railroad and Barge Groups, while Fleet revenues
during the first six months of 1996 were 10.2% behind last year's first half.
The Railroad Group's improvement, although muted by severe weather in Minnesota
during the first quarter of 1996, was principally centered around increased
demurrage billings, semi-finished steel shipments and increased bridge traffic.
Railroad Group revenues in the second quarter of 1996 were $0.9 million less
than the $91.8 million earned in the same period last year. The Barge Group's
first half revenue improvement was achieved as a result of increased traffic of
iron ore, wood chips, and slabs. Barge Group revenues in 1996's second quarter
exceeded the second quarter of 1995 by $3.1 million, increasing to $16.7
million. A portion of this increase was attributable to advance movements of
commodities in anticipation of a 21-day river outage for lock repairs that began
in late June and continued into early July and a planned 72-day, third quarter
furnace outage at USS-Fairfield Works. Fleet revenues decreased by $1.9 million
in the second quarter of 1996 when compared with the same period of 1995. The
Fleet's first half of 1996 revenues decreased $4.2 million from the levels
earned in the first six months of 1995 primarily due to the severe winter
weather and ice conditions that hampered navigation during the first four months
of 1996.
Operating Expenses
Transtar's operating expenses increased $2.5 million and $5.1 million during the
second quarter and the first half of 1996, respectively, when compared to the
same periods of 1995. The Railroad Group's second quarter 1996 expenses
increased by $1.2 million over the $65.3 million incurred during the same period
of 1995. Additionally, the Railroad Group's operating expenses increased $3.4
million for the first six months of 1996 to $132.6 million. These increased
costs are primarily the result of price increases for diesel fuel and
additional employment costs due to contractual wage increases and higher
manpower requirements associated with improved traffic levels and severe winter
weather. The Railroad Group's second quarter of 1996 operating expenses were
favorably impacted by the settlement of litigation, involving an environmental
superfund site, which resulted in a $1.0 million reduction in expense and
liability that had been established in 1992. Fleet operating expenses totaled
$24.2 million and $37.9 million during the second quarter and the first half of
1996, respectively, and remained virtually unchanged when compared to the same
periods of 1995. Additional expenses associated with employment cost, outside
contractor services and fuel were offset in 1996 by the absence of cost for
chartering vessels. Operating costs for the Barge Group increased by $1.0
million during the second quarter of 1996 from the $11.5 million incurred in the
same period last year. Barge Group expenses increased by $1.9 million to $24.6
million during the first half of 1996, attributable to improved traffic levels,
diesel fuel price increases, and high water conditions which gave rise to less
efficient barge operations.
12
<PAGE> 13
Other Income, net
Transtar's other income, net, increased by $1.1 and $1.8 million during the
second quarter and the first half of 1996, respectively, when compared to the
same periods of 1995. The major factor which contributed to this improvement in
both periods was a reduction in interest expense due to lower outstanding debt
and lower interest rates.
Provision for Income Taxes
Transtar's provision for income taxes decreased $0.8 million during the second
quarter of 1996 and $1.0 million in the first half, when compared to the same
periods of 1995. These changes are directly a result of the reduction in
Transtar's income before taxes for both periods.
Liquidity and Capital Resources
Transtar's cash and temporary investments were $6.8 million at June 30, 1996, or
$3.8 million less than the balance at the end of 1995, and $5.9 million less
than the balance at June 30, 1995. Cash flow from operating activities during
the six months ended June 30, 1996 amounted to $29.3 million, or $11.2 million
less than the comparable period of 1995. These changes are primarily
attributable to increased receivable levels and reduced levels of long term
liabilities. Cash flow used for investing activities during the first half of
1996 totaled $7.1 million, or $1.9 million more than was utilized during the
same period of 1995. Gross capital expenditures amounted to $8.1 million for the
first six months of 1996 an increase of $0.3 million versus the same period of
1995. Proceeds from the sale of property amounted to $1.0 million during the
first half of 1996 versus the $2.6 million that was generated in the similar
period of 1995.
During the second quarter of 1996, Transtar repaid $21.0 million of debt, or
$6.0 million less than last year's second quarter. This repayment was allocated
between Transtar's Term Loan facility obligation [$16.0 million] and revolving
credit facility [$5.0 million]. For the first six months of 1996, Transtar
repaid $16.0 million of Term Loan obligation and $10.0 million against its
revolving credit facility, versus a $43.0 million Term Loan repayment in the
same period of 1995. Since the December 7, 1993 refinancing, Transtar has
retired $180.0 million of its long-term obligations, and has no required debt
payments due until June 30, 1997. Transtar, as of June 30, 1996, had $13.5
million of borrowing capability available under its $25.0 million Revolving
Credit Facility.
13
<PAGE> 14
PART II - OTHER INFORMATION
Item 1. Legal Proceedings
Holdings and TCC had no reportable events of material pending legal proceedings
other than ordinary routine litigation incidental to the business during the six
month period ended June 30, 1996.
Item 6. Exhibits and Reports on Form 8-K
(a) Exhibits
27. Financial Data Schedule
(b) Reports on 8-K
Holdings and TCC did not file any reports on Form 8-K during the quarter
ended June 30, 1996.
14
<PAGE> 15
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, Registrant
has duly caused this report to be signed on its behalf by the undersigned
thereunto duly authorized.
Dated: August 9, 1996
TRANSTAR HOLDINGS, L.P.
TRANSTAR CAPITAL CORPORATION
By: /s/Howard A. Lipson
---------------------------------
Howard A. Lipson, Treasurer
15
<TABLE> <S> <C>
<ARTICLE> 5
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-START> JAN-01-1996
<PERIOD-END> JUN-30-1996
<CASH> 22
<SECURITIES> 0
<RECEIVABLES> 0
<ALLOWANCES> 0
<INVENTORY> 0
<CURRENT-ASSETS> 188
<PP&E> 0
<DEPRECIATION> 0
<TOTAL-ASSETS> 23119
<CURRENT-LIABILITIES> 297
<BONDS> 139411
0
0
<COMMON> 0
<OTHER-SE> (116589)
<TOTAL-LIABILITY-AND-EQUITY> 23119
<SALES> 0
<TOTAL-REVENUES> 0
<CGS> 282
<TOTAL-COSTS> 282
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 9106
<INCOME-PRETAX> 1617
<INCOME-TAX> 0
<INCOME-CONTINUING> 1617
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 1617
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
