<PAGE>
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 Quarter ENDED SEPTEMBER 30, 1995 Commission file number 0-7469
TJ INTERNATIONAL, INC.
(Exact name of registrant as specified in its charter)
DELAWARE 82-0250992
State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
200 E. Mallard Drive
BOISE, IDAHO 83706
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (208) 364-3300
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 and Exchange
Act of 1934 during the preceding 12 months (or for each 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____ Indicate
the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date.
October 31, 1995. 17,104,387 shares of $1 par value common stock.
EXHIBIT INDEX ON PAGE 16
<PAGE>
TJ INTERNATIONAL, INC.
PART I. FINANCIAL INFORMATION
The condensed consolidated financial statements included herein have been
prepared by the Company, without audit, pursuant to the rules and regulations of
the Securities and Exchange Commission. In the opinion of management, all
adjustments necessary to present fairly the results for the periods presented
have been included therein. The adjustments made were of a normal, recurring
nature. Certain information and footnote disclosure normally included in
financial statements have been condensed or omitted pursuant to such rules and
regulations, although the Company believes that the disclosures are adequate to
make the information presented not misleading. It is recommended that these
condensed financial statements be read in conjunction with the financial
statements and the notes thereto included in the Company's latest annual report
on Form 10-K.
The results of operations for the periods presented are not necessarily
indicative of the results that might be expected for the fiscal year ended
December 30, 1995.
<PAGE>
TJ INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(amounts in thousands except per share figures)
<TABLE>
<CAPTION>
For the fiscal For the three
quarter ended fiscal quarters ended
----------------------------- -----------------------------
September 30, October 1, September 30, October 1,
1995 1994 1995 1994
------------- ----------- ------------- ------------
<S> <C> <C> <C> <C>
Sales $165,209 $171,715 $442,906 $470,247
------------- ----------- ------------- ------------
Costs and expenses
Cost of sales 132,783 131,972 351,011 354,063
Selling expenses 15,545 15,759 46,615 46,489
Administrative expenses 7,786 8,889 25,426 25,024
------------- ----------- ------------- ------------
156,114 156,620 423,052 425,576
------------- ----------- ------------- ------------
Income from operations 9,095 15,095 19,854 44,671
Investment income, net 572 462 2,423 1,386
Interest expense --- --- --- ---
Minority Interest In Partnership (5,849) (7,984) (13,544) (24,894)
------------- ----------- ------------- ------------
Income before income taxes 3,818 7,573 8,733 21,163
Income taxes 1,404 3,368 3,219 8,677
Net Income $2,414 $4,205 $5,514 $12,486
------------- ----------- ------------- ------------
------------- ----------- ------------- ------------
Net income per common share
Primary $0.13 $0.23 $0.28 $0.68
------------- ----------- ------------- ------------
------------- ----------- ------------- ------------
Fully Diluted $0.12 $0.22 $0.27 $0.64
------------- ----------- ------------- ------------
------------- ----------- ------------- ------------
Dividends declared per common share $0.0550 $0.0550 $0.1650 $0.1650
------------- ----------- ------------- ------------
------------- ----------- ------------- ------------
Weighted average number of common shares
outstanding during the periods
Primary 17,450 17,356
------------ ------------
------------ ------------
Fully Diluted 18,680 18,626
------------ ------------
------------ ------------
</TABLE>
<PAGE>
TJ INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
<TABLE>
<CAPTION>
(amounts in thousands)
September 30, December 31, October 1,
1995 1994 1994
------------- ------------ ----------
<S> <C> <C> <C>
Assets
Current assets
Cash and cash equivalents $ 15,544 $ 57,627 $ 45,540
Marketable securities 7,737 16,084 13,839
Receivables, less allowances of
$871,000, $1,066,000 and $806,000 48,522 49,157 47,592
Inventories 51,852 56,612 64,183
Other 11,037 8,967 11,270
------------- ------------ ----------
134,692 188,447 182,424
Property
Property and equipment 575,063 488,841 465,975
Less - accumulated depreciation (157,468) (137,384) (137,859)
------------- ------------ ----------
417,595 351,457 328,116
Goodwill 47,589 48,889 22,880
Unexpended bond funds 3,517 11,550 23,185
Other assets 14,078 14,134 10,413
------------- ------------ ----------
$ 617,471 $ 614,477 $ 567,018
------------- ------------ ----------
------------- ------------ ----------
Liabilities and stockholders' equity
Current liabilities
Notes payable $ --- $ 3,753 $ 884
Current portion of long-term debt 320 570 1,470
Accounts payable 32,936 29,497 35,480
Accrued liabilities 27,798 28,550 25,718
------------- ------------ ----------
61,054 62,370 63,552
Long-term debt, excluding current portion 94,934 102,499 88,745
Deferred income taxes 8,091 8,092 7,174
Other long-term liabilities 11,718 11,777 13,519
Minority interest in Partnership 196,304 189,181 148,418
Stockholders' equity
ESOP Convertible Preferred Stock, $1.00 par
value, authorized 10,000,000 shares,
issued 1,188,668, 1,249,582 and 1,252,253 14,024 14,744 14,776
Guaranteed ESOP benefit (11,435) (12,100) (12,390)
Common stock, $1.00 par value, authorized
200,000,000 shares, issued
17,104,387, 16,915,536 and 16,906,641 17,104 16,916 16,907
Paid-in capital 139,753 138,003 137,561
Retained earnings 88,462 86,355 91,152
Cumulative translation adjustments (2,538) (3,360) (2,396)
------------- ------------ ----------
245,370 240,558 245,610
------------- ------------ ----------
$ 617,471 $ 614,477 $ 567,018
------------- ------------ ----------
------------- ------------ ----------
</TABLE>
<PAGE>
TJ INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE THREE FISCAL QUARTERS ENDED
September 30, 1995 and October 1, 1994
(Unaudited)
(amounts in thousands)
September 30, October 1,
1995 1994
------------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income $ 5,514 $ 12,486
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 23,961 21,084
Minority interest in partnerships 13,544 24,894
Other, net 24 (320)
Change in working capital items:
Receivables 635 (1,883)
Inventories 4,760 (11,102)
Other current assets (2,070) (1,210)
Accounts payable and accrued liabilities 1,228 9,113
Other, net 1,766 (3,069)
------------- ----------
Net cash provided from operating activities $ 49,362 $ 49,993
------------- ----------
------------- ----------
CASH FLOW FROM INVESTING ACTIVITIES
Capital expenditures $ (89,794) $(110,410)
Sales (purchases) of Marketable securities 8,347 (6,835)
Decrease (increase) in unexpended bond funds 8,033 (23,185)
Other, net 2,079 591
------------- ----------
Net cash used in investing activities $ (71,335) $(139,839)
------------- ----------
------------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividends paid on common stock $ (2,802) $ (2,772)
Minority partners capital contributions --- 26,411
Minority partners tax distributions (5,045) (8,928)
Proceeds from issuance of long-term debt 36,900 58,500
Net borrowing (repayments) under lines of credit (3,753) (3,123)
Principal payments of long-term debt (45,315) (961)
Other, net (95) (709)
------------- ----------
Net cash provided (used)by financing
activities $ (20,110) $ 68,418
------------- ----------
------------- ----------
NET CHANGE IN CASH AND CASH EQUIVALENTS
Net increase (decrease) in cash and cash
equivalents $ (42,083) $ (21,428)
Cash and cash equivalents at beginning of year 57,627 66,968
------------- ----------
Cash and cash equivalents at end of period $ 15,544 $ 45,540
------------- ----------
------------- ----------
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION
cash paid during the period for:
Interest, net of amounts capitalized $ --- $ ---
Income taxes $ 1,966 $ 6,147
<PAGE>
TJ INTERNATIONAL, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
INVENTORIES
Inventories consisted of the following:
(amounts in thousands)
Sept. 30, Dec. 31, Oct. 1,
1995 1994 1994
---------- --------- --------
Finished goods $ 13,249 $ 27,512 $ 27,193
Raw materials and
work-in-progress 44,754 34,363 42,198
---------- --------- --------
58,003 61,875 62,391
Reduction to LIFO cost (6,151) (5,263) (5,208)
---------- --------- --------
$ 51,852 $ 56,612 $ 64,183
---------- --------- --------
---------- --------- --------
The determination of inventory under the LIFO method can be made only at the
end of each fiscal year based on the inventory levels and costs at that time.
Accordingly, interim LIFO calculations must necessarily be based on the
Company's estimates of expected year-end inventory levels and costs. Since
these estimates are subject to many forces beyond the Company's control,
interim results could possibly be affected by the final year-end LIFO inventory
valuation.
RECLASSIFICATIONS
Certain reclassifications have been made, none of which affected net income, to
conform prior year's information to the current year's presentation.
NET INCOME PER COMMON SHARE
Primary net income per common share is based on net income adjusted for
preferred stock dividends and related tax benefits divided by the weighted
average number of common shares outstanding after giving effect to stock
options as common stock equivalents. Fully diluted net income per common share
assumes conversion of the ESOP convertible preferred stock into common stock at
the beginning of the year.
<PAGE>
Primary net income and fully diluted net income were calculated as follows:
(amounts in thousands)
For the fiscal For the three fiscal
quarter ended quarters ended
-------------------- ----------------------
Sept. 30, Oct.2, Sept. 30, Oct. 1
1995 1994 1995 1994
--------- ------- --------- ------
PRIMARY NET INCOME
Net income as reported $ 2,414 $ 4,205 $ 5,514 $12,486
Preferred stock dividends,
net of related tax benefits (218) (228) (661) (694)
--------- ------- --------- -------
Primary net income $ 2,196 $ 3,977 $ 4,853 $11,792
--------- ------- --------- -------
--------- ------- --------- -------
FULLY DILUTED NET INCOME
Net income as reported $ 2,414 $ 4,205 $ 5,514 $ 12,486
Additional ESOP contribution
payable upon assumed
conversion of ESOP
preferred stock, net of
related tax benefits (169) (179) (515) (540)
--------- ------- --------- -------
Fully Diluted Net Income $ 2,245 $ 4,026 $ 4,999 $11,946
--------- ------- --------- -------
--------- ------- --------- -------
INDUSTRY SEGMENTS
The Company classifies its manufactured products into two core business units:
engineered lumber products and window operations. Summary financial
information by business unit is as follows:
(amounts in thousands)
For the Engineered Window
Fiscal Quarter Ended Lumber Operations Other Consolidated
---------- ---------- ----- ------------
SEPT. 30, 1995
Sales to unaffiliated
customers $ 137,759 $ 27,450 --- 165,209
Income (loss) from
operations 11,985 (2,860) (30) 9,095
OCT. 1, 1994
Sales to unaffiliated
customers 136,295 35,420 --- 171,715
Income (loss) from
operations 16,422 (829) (498) 15,095
<PAGE>
For the Three Engineered Window
Fiscal Quarter Ended Lumber Operations Other Consolidated
---------- ---------- ----- ------------
SEPT. 30, 1995
Sales to unaffiliated
customers $ 371,582 $ 71,324 $ --- $ 442,906
Income (loss) from
operations 27,550 (6,265) (1,431) 19,854
OCT. 1, 1994
Sales to unaffiliated
customers 383,382 86,865 --- 470,247
Income (loss) from
operations 51,097 (5,315) (1,111) 44,671
<PAGE>
TJ INTERNATIONAL, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL QUARTER ENDED JULY 1, 1995
OPERATING RESULTS
The following comments discuss material variations in the results of
operations for the comparative periods presented in the condensed consolidated
financial statements of income.
SALES
The Company's sales by quarter during the current year and the preceding four
years are as follows:
Quarter 1995 1994 1993 1992 1991
- ------- -------- -------- --------- ------- --------
First $129,100 $135,048 $114,111 $ 75,561 $ 45,330
Second 148,597 163,484 139,639 111,024 79,679
Third 165,209 171,715 152,729 113,512 84,838
Fourth 148,629 144,725 100,383 73,363
------- ------- ------- -------
442,906 618,876 551,204 400,480 283,210
======= ======= ======= ======= =======
GENERAL
The Company's operations are strongly influenced by the cyclicality and
seasonality of residential housing construction. This industry experiences
fluctuations resulting from a number of factors, including the state of the
economy, consumer confidence, credit availability, interest rates, and weather
patterns. Additionally, engineered lumber sales are influenced by the market
for traditional solid-sawn lumber products, for which the Company's products
serve as a value-added substitute. The Company is also affected by the
seasonality of this industry, which is particularly pronounced in the colder
climates of the Northern, Mid-Western, and Rocky Mountain regions of the United
States and Canada. The Company's window segment, which is predominantly located
in these regions of the United States, is significantly impacted by these
weather patterns. As a result of this seasonality, the Company's sales have
historically tended to be lowest in the first and fourth quarters and highest in
the second and third quarters of each year.
The Company's engineered lumber products continue to gain market acceptance
as high-quality substitutes for large-dimension structural lumber. Through
the Company's intensive marketing efforts, builders and other wood users are
increasingly recognizing the consistent quality, superior strength, lighter
weight, and ease of installation of engineered lumber products. The Company
believes that this trend will continue well into the future.
No other company possesses the range of engineered lumber products, the
levels of service and technical support, nor the second generation
technologies of TimberStrand-Registered Trademark- laminated strand lumber
(LSL) or Parallam-Registered Trademark- parallel strand lumber (PSL). There
are, however, a number of companies, including several large forest products
companies, that now produce look-alike wood I-joist and laminated veneer
lumber (LVL) products. Several of these companies have announced capacity
expansions. These look-alike products are manufactured using processes
similar to the Company's oldest generation technologies.
<PAGE>
The Company believes its network of manufacturing plants and multiple
technologies position it as the low-cost producer of engineered lumber. While
competition helps expand the market for engineered wood products including
those manufactured by the Company, it may also make the existing markets more
price competitive. It is likely these trends of increased price competition
for traditional engineered lumber products will continue for the foreseeable
future.
At the end of 1994, the Company sold its wholly-owned Canadian window
businesses which were unprofitable in 1994. In the fourth quarter of 1994, the
Company entered into the Outlook Window Partnership, by combining the assets of
Norco Windows, Inc. with those of historically profitable SealRite Windows and
Oldach Windows. The Company's window segment consists of its 64 percent
interest in the Outlook Window Partnership. In accordance with the terms of
the Partnership Agreement, however, substantially all of the losses incurred by
the Norco Windows division in the 4th quarter of 1994 through 1995 will be
allocated to the Company.
The Company's window products compete in the marketplace by striving to provide
reliable product quality and high levels of service through locally tailored
distribution channels. The Company's consolidated net income for the three
quarters ended September 30, 1995, was materially reduced from levels that
would have otherwise been achieved due to losses incurred in its window
business. The Company expects that its results of operations for 1995 will
reflect losses in its window business. The Company is evaluating the carrying
value of the assets in its window segment including the recoverability of all
or part of the $26 million of goodwill recorded in connection with Outlook's
formation. The Company presently intends to sell or otherwise divest of its
interest in Outlook depending on available opportunities and is in
discussions with the Outlook partners in this regard.
THIRD QUARTER OF 1995 COMPARED WITH THE THIRD QUARTER OF 1994
Sales for the third quarter of 1995 decreased $6.5 million or 4 percent from
the comparable period in 1994. The Company's window segment sales declined $8
million or 23 percent from year-ago levels, more than offsetting the increased
sales in the engineered lumber business. The third quarter saw continued
weakening of housing markets, with single family housing starts in North
America declining 10 percent in the first nine months of 1995 compared to the
same period in 1994.
Third quarter sales of the Company's engineered lumber products increased
$1.5 million to $137.8 million, compared to the $136.3 million in the prior
year's third quarter. The improvement came from volume increases over the
comparable period in 1994. Unit volumes sold in the third quarter were up 6
percent from 1994's third quarter, despite the decline in housing starts
mentioned previously. Sales volume growth was in all major product lines
with the strongest gains made in the Company's new technology
Parallam-Registered Trademark- PSL and TimberStrand-Registered Trademark- LSL
products. The Company believes these gains reflect continuing acceptance of
its products in residential construction. Unit volume gains were partially
offset by price reductions, as sales prices averaged 5 percent lower in the
third quarter of 1995 than the comparable quarter in 1994. Lumber prices for
commodity lumber, which remains the primary competition for the Company's
products, were down approximately 7 percent from the third quarter of 1994.
Additionally, the Company continues to experience price competition from
competitor's look-alike products. The unit price reductions reflect the
Company's continuing strategy of providing competitively priced products.
<PAGE>
Window sales in the third quarter were $27.4 million as compared to $35.4
million in the third quarter of 1994. Window sales have been adversely
affected by the reduced market opportunity in new residential construction. In
addition, the Company's window business has been particularly impacted by gains
in market share made by competing vinyl windows within its traditional markets.
Gross margins declined to 19.6 percent compared to 23.1 percent for the same
period in 1994, primarily due to two significant items. First, margins were
reduced by $4.8 million of start-up losses at the Company's Kentucky
TimberStrand-Registered Trademark- LSL and West Virginia combination
Parallam-Registered Trademark- PSL and Microllam-TM- LVL plants. In the
third quarter, the Company's Kentucky plant encountered temporary mechanical
problems which delayed the start-up approximately 60 days. However, the
plant did begin producing product during the third quarter, and no
significant technological problems have been encountered. Total engineered
lumber margins would have been on par with those of the third quarter in
1994, were it not for these start-up losses. The Company's initial
TimberStrand-Registered Trademark- LSL plant in Deerwood, Minnesota continued
to see improvement in both lower unit costs and higher sales realizations
and was a solid contributor to both gross margins and operating income in
the third quarter of 1995.
The second factor in the margin decline was lower margins in the Company's
window segment. This decline was primarily the result of a $1.6 million
write-off taken during the quarter for obsolete, damaged, and discontinued
products in Outlook's Norco windows inventory, and the closure of virtually all
of Outlook's Eastern distribution warehouses. Additionally, lower unit volumes
in Outlook's manufacturing facilities have adversely impacted manufacturing
costs, further pressuring margins.
Selling expenses remained constant between the third quarter of 1995 and the
comparable period in 1994. Administrative expenses decreased in absolute
dollars and as a percentage of sales. The decrease reflects the Company's
efforts to lower overheads in both segments of its business.
The $2.2 million decrease in minority interest expense from $8.0 million to
$5.8 million is a direct result of lower operating income at the engineered
lumber partnership.
FIRST THREE QUARTERS OF 1995 COMPARED WITH THE FIRST THREE QUARTERS OF 1994
Sales for the first three quarters of 1995 decreased by $27.3 million or 6
percent from the comparable period last year. The decline reflects a weaker
building climate, lower window sales and lower engineered lumber prices
compared to the comparable period of 1994. Income from operations decreased
from $44.7 million in 1994 to $19.9 million in the current year.
Engineered lumber sales declined $11.8 million or 3 percent from the prior
year. Prices declined 4 percent on average compared to last year and volumes
increased 2 percent, despite the 10 percent drop in North American new housing
starts. Window product sales decreased by 18 percent from the comparable
period last year.
Gross operating margins as a percent of sales were 20.7 percent compared to
24.7 percent for the first nine months of 1994. The decline in margins is
primarily due to price reductions for engineered lumber products in the first
half of the year, as compared to the Company's near-record first half of
1994. In addition, the Company has incurred approximately $8.6 million of
start-up
<PAGE>
expenses at its two new technology plants in Kentucky and West Virginia and a
$1.6 million adjustment related to inventory and the closure of certain
distribution facilities in the Eastern United States.
Selling and administrative expenses have increased slightly in absolute
dollars and as a percent of sales, in the engineered lumber segment, compared
to the prior year. These trends reflect the combination of cost-cutting
measures taken throughout the organization offset by the Company's
continuing investment in expanding markets, new and innovative products, and
the underlying technology to position the Company to compete effectively in
the engineered lumber products marketplace of the future. Selling and
administrative expenses are down slightly in absolute dollars and up slightly
as a percent of sales in the windows segment of the business.
LIQUIDITY AND CAPITAL RESOURCES
SEPTEMBER 30, 1995, COMPARED TO DECEMBER 31, 1994
Working capital decreased $52.4 million during the nine months ended
September 30, 1995. The decrease was due primarily to continuing
expenditures for the construction of the Company's two new technology plants.
SEPTEMBER 30, 1995, COMPARED TO OCTOBER 1, 1994
Working capital declined from $118.9 million at October 1, 1994 to $73.6
million at September 30, 1995. As discussed above, the primary use of working
capital was for new construction. Additionally, the Company had lower levels
of inventory on hand at September 30, 1995, as compared to the previous year.
The Company's Board of Directors approved a capacity expansion program in
1993 that included construction of a plant near Hazard, Kentucky, to
manufacture TimberStrand-Registered Trademark- LSL. Construction commenced
in the fall of 1993, and was substantially completed in September, 1995.
Total expenditures are just over $100 million. In addition, the Company's
Board of Directors approved construction of a plant to manufacture both
Microllam-TM- LVL and Parallam-Registered Trademark- PSL near Buckhannon,
West Virginia, at an expected cost of approximately $85 million.
Construction of this plant commenced in the second quarter of 1994, with the
Microllam-Registered Trademark- LVL portion essentially completed by the end
of the third quarter of 1995 and the Parallam-Registered Trademark- PSL
portion of the plant expected to be completed in the fourth quarter of 1995.
Approximately $15 million of capital cost remains and is expected to be paid
in the fourth quarter of 1995. The Company is evaluating potential sites for
a third TimberStrand-Registered Trademark- LSL plant, or an additional
combination Microllam-TM- LVL and Parallam-Registered Trademark- PSL plant but
has not determined whether or when to proceed with construction.
During the second quarter of 1994, the Company issued $43.5 million of
industrial revenue bonds to finance the construction of the Hazard, Kentucky
TimberStrand-Registered Trademark- LSL plant. The bonds are due in a single
maturity in 2024, with interest payable semi-annually at 7 percent.
MacMillan Bloedel's Board of Directors authorized a $49 million capital
contribution to the TJM Partnership in light of the capacity expansion program.
The entire amount was contributed by December 1994.
In the third quarter of 1995, the Company issued $22.5 million of industrial
revenue bonds to finance the construction of the Buckhannon, West Virginia
combination Microllam-TM- LVL and Parallam-Registered Trademark- PSL
plant. The bonds are due in a single maturity in 2025, with interest payable
semi-annually at 7 percent. Remaining proceeds from these bonds are recorded
as unexpended bond funds.
<PAGE>
The Company believes that current cash balances, cash generated from
operations, remaining industrial revenue bond proceeds, and borrowing under a
$100 million Revolving Credit Facility will be sufficient to meet the Company's
capital expansion program approved by the Board of Directors and to fund any
remaining start-up losses at its Hazard and Buckhannon plants. The Company also
believes that additional or expanded lines of credit or appropriate long-term
capital can be obtained to fund other capital requirements as they arise, or to
fund an acquisition.
Substantially all of the Company's operating assets are held, and revenue
generated, by its partnerships. The partnerships regularly distribute cash
to the partners to fund the tax liabilities generated by the partnerships at
the corporate level. All other distributions of cash by the partnerships are
dependent on the affirmative votes of the representatives of the minority
partners on the respective management boards. Accordingly, there can be no
assurance that distributions will be approved and thereby be available for
the payment of dividends or to fund other operations of the Company.
Microllam-TM- is a trademark of Trus Joist MacMillan a Limited Partnership,
Boise, Idaho.
Parallam-Registered Trademark- and TimberStrand-Registered Trademark- are
registered trademarks of Trus Joist MacMillan a Limited Partnership, Boise,
Idaho.
<PAGE>
TJ INTERNATIONAL, INC.
PART II
Other Information
Item 5. OTHER INFORMATION
SOLID WASTE DISPOSAL REVENUE BOND FINANCING - On August 9, 1995, the
Company announced that it had completed, in conjunction with the
County of Upshur, West Virginia an offering of $22.5 million of Solid
Waste Disposal Revenue Bonds (TJ International Project) Series 1995.
The proceeds of the tax-exempt Bonds are being loaned to the Company
to finance a portion of the construction of the Company's West
Virginia production facility for the manufacturing of engineered
lumber. Construction of the plant began in mid-1994, and initial
production has begun in the summer of 1995. The Bonds are dated as
of July 15, 1995, and have a 30-year maturity, bearing interest at 7
percent. The Bonds represent a general, unsecured obligation of the
Company. Payment of principal and interest on the Bonds has been
unconditionally guaranteed by Trus Joist MacMillan a Limited
Partnership.
Item 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) Filed as an exhibit to this report is the following:
(27) Financial Data Schedule
(b) No reports on Form 8-K were filed during the quarter ended
September 30, 1995.
(c) The Loan Agreement, Trust Indenture and Guaranty pertaining to
the Solid Waste Disposal Revenue bonds, Series 1995 is
available to the Commission upon request.
<PAGE>
TJ INTERNATIONAL INC.
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 thereunto duly authorized.
TJ INTERNATIONAL, INC.
/s/ Valerie A. Heusinkveld
--------------------------
Valerie A. Heusinkveld
Vice President, Finance & Chief
Financial Officer
Date: November 14, 1995
<PAGE>
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
EXHIBITS TO FORM 10-Q
Quarterly Report Under section 13 or 15 (d)
of the Securities Exchange Act of 1934
For the fiscal quarter ended September 30, 1995 Commission File Number 0-7469
TJ INTERNATIONAL, INC.
EXHIBIT INDEX
Exhibits Page
- -------- ----
(27) Financial Data Schedule Document 2
<TABLE> <S> <C>
<PAGE>
<ARTICLE> 5
<LEGEND>
THIS DATA SCHEDULE CONTAINS FINANCIAL INFORMATION EXTRACTED FROM THE BALANCE
SHEET AND INCOME STATEMENT OF TJ INTERNATIONAL, INC. AS OF SEPTEMBER 30, 1995.
THE INFORMATION PRESENTED IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH
FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-30-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> SEP-30-1995
<CASH> 15,544
<SECURITIES> 7,737
<RECEIVABLES> 49,393
<ALLOWANCES> 871
<INVENTORY> 51,852
<CURRENT-ASSETS> 134,692
<PP&E> 575,063
<DEPRECIATION> 157,468
<TOTAL-ASSETS> 617,471
<CURRENT-LIABILITIES> 61,054
<BONDS> 94,934
<COMMON> 17,104
0
14,024
<OTHER-SE> 214,242
<TOTAL-LIABILITY-AND-EQUITY> 617,471
<SALES> 442,906
<TOTAL-REVENUES> 442,906
<CGS> 351,011
<TOTAL-COSTS> 351,011
<OTHER-EXPENSES> 72,041
<LOSS-PROVISION> 29
<INTEREST-EXPENSE> 0
<INCOME-PRETAX> 8,733
<INCOME-TAX> 3,219
<INCOME-CONTINUING> 5,514
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 5,514
<EPS-PRIMARY> .28
<EPS-DILUTED> .27
</TABLE>
