<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: April 3, 1999 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. May
11, 1999, 15,470,423 shares of $1 par value common stock,
excluding 2,717,131 shares held as treasury 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 management, 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 in accordance with such rules and regulations, although
management 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 audited financial statements and the notes thereto
included in our 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 ending January 1, 2000.
<PAGE>
<TABLE>
<CAPTION>
TJ INTERNATIONAL, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(AMOUNTS IN THOUSANDS)
<S> <C> <C> <C>
April 3, January 2, April 4,
ASSETS 1999 1999 1998
Current assets
Cash and cash equivalents $ 66,575 $ 140,060 $ 97,192
Marketable securities ----- 9,091 -----
Receivables, less allowances of
$376, $374 and $398 137,403 69,990 123,790
Inventories 73,607 78,827 72,882
Other 13,947 14,441 12,988
----------- ---------- ---------
291,532 312,409 306,852
Property
Property and equipment 657,882 642,690 609,848
Less - Accumulated depreciation (271,761) (260,123) (233,333)
----------- ---------- ---------
386,121 382,567 376,515
Goodwill 18,200 18,460 19,240
Other assets 18,846 17,503 17,244
----------- ---------- ---------
$ 714,699 $ 730,939 $ 719,851
=========== ========== =========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $ 28,648 $ 19,639 $ 31,221
Accrued liabilities 51,987 50,927 43,808
---------- ---------- ---------
80,635 70,566 75,029
Long-term debt 142,390 142,390 142,390
Other long-term liabilities 31,937 31,919 19,770
Reserve for discontinued operations 13,388 13,687 14,448
Minority interest in Partnership 212,298 239,572 222,344
Stockholders' equity
ESOP Convertible Preferred Stock,
$1.00 par value, authorized
10,000,000 shares, issued
1,116,341, 1,124,848, and 1,140,319 13,170 13,271 13,454
Guaranteed ESOP Benefit (7,273) (7,288) (8,188)
Common stock, $1.00 par value,
authorized 200,000,000 shares,
issued 18,140,207, 18,069,077,
and 17,893,134 18,140 18,069 17,893
Paid-in capital 162,547 160,863 155,798
Retained earnings 116,612 110,411 91,995
Other (1,962) (1,949) (1,866)
Accumulated other comprehensive
Income (loss) (5,663) (6,228) (3,858)
Treasury stock, 2,626,905,
2,321,605, and 888,782, shares,
at cost (61,520) (54,344) (19,358)
----------- ---------- ---------
234,051 232,805 245,870
----------- ---------- ---------
$ 714,699 $ 730,939 $ 719,851
=========== ========== =========
</TABLE>
<PAGE>
TJ INTERNATIONAL, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
<TABLE>
<CAPTION>
(amounts in thousands
except per share figures)
<S> <C> <C> <C>
For the fiscal
quarter ended
April 3, April 4,
1999 1998
Sales $ 217,042 $ 185,829
--------------- --------------
Costs and expenses
Cost of sales 164,134 135,523
Selling expenses 19,660 19,575
Administrative expenses 9,654 9,610
--------------- --------------
193,448 164,708
--------------- --------------
Income from operations 23,594 21,121
Investment income, net 1,234 1,959
Interest expense (2,219) (2,316)
Minority interest in Partnership (11,120) (9,847)
--------------- --------------
Income before income taxes 11,489 10,917
Income taxes 4,194 4,094
--------------- --------------
Net income $ 7,295 $ 6,823
=============== ==============
Net income per common share
Basic $ 0.45 $ 0.39
=============== ==============
Diluted $ 0.42 $ 0.36
=============== ==============
Dividends declared per common share $ 0.055 $ 0.055
=============== ==============
Weighted average number of common shares
outstanding during the periods
Basic 15,614 16,958
=============== ==============
Diluted 17,022 18,556
=============== ==============
</TABLE>
<PAGE>
TJ INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE FISCAL QUARTER ENDED
APRIL 3, 1999, AND APRIL 4, 1998
(Unaudited)
(amounts in thousands)
<TABLE>
<CAPTION>
April 3, April 4,
1999 1998
------------ ----------
<S> <C> <C> <C>
Cash flows from operating activities
- ------------------------------------
Net income $ 7,295 $ 6,823
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and amortization 11,742 11,081
Minority interest in partnerships 11,120 9,847
Other, net 1,309 1,201
Change in working capital items:
Receivables (67,413) (68,421)
Inventories 5,220 (3,928)
Other current assets 530 (2,065)
Accounts payable and accrued liabilities 9,784 (326)
Other, net (1,325) (1,062)
----------- -----------
Net cash used in operating activities $ (21,738) $ (46,850)
=========== ===========
Cash flows from investing activities
- ------------------------------------
Capital expenditures $ (14,530) $ (6,904)
Sales of marketable securities 9,091 40,751
Other, net (273) (801)
----------- -----------
Net cash provided by (used in) investing
activities $ (5,712) $ 33,046
============ ===========
Cash flows from financing activities
- -------------------------------------
Cash dividends paid on common stock $ (866) $ (938)
Minority partners tax distributions (3,771) (4,179)
Minority partners capital distributions (34,300) -----
Purchase of treasury stock (7,176) (3,099)
Other, net 78 125
------------ -----------
Net cash used in financing activities $ (46,035) $ (8,091)
============ ===========
Net change in cash and cash equivalents
- ---------------------------------------
Net decrease in cash and cash
equivalents $ (73,485) $ (21,895)
Cash and cash equivalents at beginning of year 140,060 119,087
------------ -----------
Cash and cash equivalents at end of period $ 66,575 $ 97,192
============ ===========
Supplemental disclosures of cash flow information
- -------------------------------------------------
Cash paid during the period for:
Interest, net of amounts capitalized $ 1,256 $ 2,659
Income taxes $ 607 $ 2,597
</TABLE>
<PAGE>
TJ INTERNATIONAL, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
<TABLE>
<CAPTION>
Inventories
- -----------
Inventories consisted of the following:
(amounts in thousands)
<S> <C> <C> <C>
April 3, Jan. 2, April 4,
1999 1999 1998
Finished goods $55,758 $59,740 $54,523
Raw materials and
work-in-progress 17,849 19,087 18,359
-------- -------- --------
73,607 78,827 72,882
Inventories are priced at the lower of cost or market, with cost determined on
a first-in, first-out basis and market based on the lower of replacement cost
or estimated realizable value.
</TABLE>
<PAGE>
Net Income Per Common Share:
- ----------------------------
Basic 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.
Diluted net income per common share assumes conversion of the
Employee Stock Ownership Plan (ESOP) convertible preferred stock
(ESOP preferred stock) into common stock at the beginning of the
year and weighted average number of common shares outstanding
after giving effect to stock options under the treasury stock
method.
Basic net income and diluted net income were calculated as
follows:
<TABLE>
<CAPTION>
For the fiscal
quarter ended
April 3, April 4,
1999 1998
--------- ----------
<S> <C> <C>
Basic net income
- ----------------
Net income as reported $ 7,295 $ 6,823
Preferred stock dividends, net
of related tax benefits (257) (253)
--------- ---------
Basic net income $ 7,038 $ 6,570
========= =========
Diluted net income
- ------------------
Net income as reported $ 7,295 $ 6,823
Additional ESOP contribution
payable upon assumed
conversion of ESOP
preferred stock, net of
related tax benefits (188) (166)
-------- ---------
Diluted net income $ 7,107 $ 6,657
======== =========
- ------------------------------------------------------------------------------
Weighted average shares outstanding
used to determine basic earnings
per common share 15,614 16,958
Conversion of ESOP preferred
stock 1,122 1,140
Exercise of stock options using
the Treasury Stock Method 286 458
Weighted average shares used to
determine diluted earnings per -------- ---------
common share 17,022 18,556
======== =========
- ------------------------------------------------------------------------------
</TABLE>
<PAGE>
Comprehensive Income (Loss)
- ---------------------------
Comprehensive income for the periods include the following:
<TABLE>
<CAPTION>
For the fiscal
quarter ended
---------------------
April 3, April 4,
1999 1998
--------- ---------
<S> <C> <C>
Net Income $ 7,295 $ 6,823
Other Comprehensive Income (Loss) 565 (53)
-------- --------
Comprehensive Income $ 7,860 $ 6,770
======== ========
</TABLE>
Accumulated other comprehensive income (loss) for each period
ended was as follows:
<TABLE>
<CAPTION>
(amounts in thousands)
<S> <C> <C> <C>
April 3, Jan. 2, April 4,
1999 1999 1998
--------- --------- ----------
Balances at beginning of period-
cumulative translation adjustment $(6,228) $ (3,805) $ (3,805)
Changes within periods-
cumulative translation adjustment 565 (2,423) (53)
-------- --------- ---------
Balance at end of period-
cumulative translation adjustment $(5,663) $ (6,228) $ (3,858)
======== ========= =========
- ------------------------------------------------------------------------------
</TABLE>
<PAGE>
TJ INTERNATIONAL, INC.
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE FISCAL QUARTER ENDED APRIL 3, 1999
OPERATING RESULTS
We are the 51 percent owner and managing partner of Trus Joist
MacMillan a Limited Partnership (TJM), the world's leading
manufacturer and marketer of engineered lumber products.
Substantially all of our operating assets are held and revenue
generated by TJM. MacMillan Bloedel Limited (MB) owns a 49
percent interest in TJM.
The following comments discuss material variations in the results
of Operations for the comparative periods presented in the
condensed consolidated statements of income.
Sales
- -----
Our sales by quarter during the current year and for the
preceding four years are as follows:
Sales by Quarter
----------------
(amounts in thousands)
<TABLE>
<CAPTION>
Quarter 1999 1998 1997 1996 1995
- ------- -------- --------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
First $217,042 $185,829 $161,263 $111,157 $109,941
Second 193,361 185,730 155,050 123,882
Third 222,423 185,576 179,571 137,759
Fourth 176,450 173,747 131,388 113,263
-------- -------- -------- --------
$778,063 $706,316 $577,166 $484,845
======== ======== ======== ========
</TABLE>
FIRST QUARTER 1999 COMPARED TO FIRST QUARTER 1998
We achieved first quarter record sales levels in 1999. Sales for
the quarter grew to $217 million, a 17% increase from the $186
million reported in the first quarter of 1998. The increase in
sales resulted from growing acceptance of engineered lumber in
construction due to the higher quality and better value that
engineered lumber products provide over competing solid sawn
lumber products.
We had a very good market environment in the first quarter of
1999, strong North American housing starts as well as increasing
lumber prices. Our past experience has been that as lumber
prices increase, builders accelerate their switch to engineered
lumber. Demand for our residential products during the first
quarter was so strong that we instituted a managed demand system
for our customers. This system is designed primarily to keep any
particular customer or group of customers from placing orders in
excess of existing capacity and extending lead times to
unreasonable levels. We have additional capacity coming on line
from our newly constructed Evergreen, Alabama TJI-Registered
Trademark- joist and Microllam-Registered Trademark-LVL facility,
as well as adding additional shifts to our TJI-Registered
Trademark- joist facility at the East Kentucky
TimberStrand-Registered Trademark- LSL plant. We believe these
capacity additions will be adequate to meet the increased demand
we are experiencing for our products.
Unit volume growth accounted for virtually all of the sales
increase for 1999. Our average prices across our technologies
were down 1.8% in the first quarter of 1999 as compared to the
first quarter of 1998. Volume gains were strong for all of our
technologies with TimberStrand-Registered Trademark- LSL showing
the strongest percentage gain followed closely by TJI-Registered
Trademark- joists, Microllam-Registered Trademark- LVL, and
Parallam-Registered Trademark- PSL.
<PAGE>
Gross margins for the quarter were 24.4% compared with 27% in
1997. Several factors have impacted our margins, the first of
which is rising costs for veneer, which is a significant raw
material component in many of our products. Prices for veneer on
the West Coast were at the highest levels for the first quarter
in the last 5 years. Prices were also higher for Oriented Strand
Board (OSB). We use a proprietary OSB as a purchased raw
material component for our TJI-Registered Trademark- joists. We
have put in place price collars around a significant portion of
our planned OSB purchases to protect us from the price spikes we
experienced last year, however, the prices within the collar are
higher than we paid last year in the first quarter. Offsetting
these cost increases were productivity improvements, increased
through put and reduced unit costs in our new technologies. In
addition, an increasing amount of our product line's cost
structure is tied to logs, which do not experience the same price
volatility as commodity veneer and OSB.
Selling expenses were essentially flat from the first quarter of
1998 compared to the first quarter of 1999, which resulted in a
reduction of selling expenses as a percent of sales. We continue
to execute our strategy of providing value-added services to the
market. In addition, our selling expenses include the costs to
develop our international markets.
General and administrative expenses were also essentially flat
from 1998 to 1999 with spending of $9.6 million in both quarters.
However, as a percentage of sales, general and administrative
expenses declined in 1999 to 4.6% compared to 5.1% for 1998.
Interest income has declined from the first quarter of last year
due to lower invested cash balances and a shift to lower yielding
tax-exempt investments from taxable investments. The effective
tax rate is 36.5% for 1999 as compared to 37.5% in 1998. The
tax-exempt interest income as well as other initiatives we are
implementing are driving this rate reduction.
Minority interest expense increased $1.3 million from 1998 due to
an increase in earnings of the Trus Joist MacMillan (TJM)
Partnership.
LIQUIDITY AND CAPITAL RESOURCES
Working capital at the end of the first quarter was $211 million
as compared to $232 million at the end of the first quarter of
1998. The reduction in working capital was primarily due to the
use of cash for the stock repurchase program and the cash
distribution to MacMillan Bloedel of America. Accounts
receivable balances increased at the end of the first quarter for
both years as a result of the extended terms offered to customers
as part of our Strategic Inventory Program offered to customers.
The program ended in March 1999 and the terms offered to our
customers will return to those offered prior to the incentive
program.
In December 1998, the Board of Directors approved a cash
distribution from Trus Joist MacMillan, a limited partnership, to
its partners, MacMillan Bloedel of America and TJ International,
Inc. The distribution of $34.3 million was made in January 1999
to MacMillan Bloedel of America and has been recorded as a
reduction of Minority Interest in Partnership.
In 1997, we began construction of a Microllam-Registered
Trademark- LVL and TJI-Registered Trademark- joist plant located
in Evergreen, Alabama and completed the facility in 1998.
Production began late in the fourth quarter of 1998. This new
facility will produce traditional Microllam-Registered Trademark-
LVL and TJI-Registered Trademark- joist products. The plant
construction required a capital investment of approximately $45
million.
<PAGE>
We are in the final planning stages for adding another
significant increase in our production capacity. While we have
not made a final determination as to whether or when to proceed
with construction of a new manufacturing facility, the
preliminary evaluations indicate construction of another
TimberStrand-Registered Trademark- LSL facility. In May 1999, we
were granted timber-harvesting rights by the Province of Ontario.
We are in the process of determining if the timber included in
these rights is the type and quantity we need to furnish a
TimberStrand-Registered Trademark- LSL plant. We believe that
current cash balances, cash generated from operations, and
borrowing under a $150 million Revolving Credit Facility will be
sufficient to meet our on-going operating and capital expansion
needs. We also believe additional or expanded lines of credit or
appropriate long-term capital can be obtained to fund other major
capital requirements as they arise or to fund an acquisition.
In December 1998, the Board of Directors authorized a $25 million
share repurchase program. At the end of the first quarter of
1999, approximately $7 million of stock has been repurchased
under this program and was held as Treasury shares.
In the first quarter of 1998, the Board of Directors authorized
us to purchase $3.1 million of treasury stock. In addition, at
the Board of Directors meeting held on May 27, 1998, the Board
authorized us to purchase $35 million of treasury stock. We
purchased $4.4 million in the second quarter of 1998 and $30.6
million in the third quarter 1998 completing this stock purchase
program.
In the third quarter of 1998, we issued $6.7 million of
tax-exempt industrial revenue variable rate demand bonds related
to the East Kentucky plant. In 1998, the weighted average
interest rate on these bonds was 3.82%. These bonds are
unsecured, with the principal due in a single maturity in 2028.
We used the proceeds from these bonds to prepay, without penalty,
$6.7 million of the taxable industrial revenue bonds described
below.
In the fourth quarter of 1998, we extended for five years the due
date of our $10 million tax-exempt industrial revenue variable
rate demand bonds, which otherwise would have matured in the year
2000. These bonds had a weighted average interest rate of 3.82%
in 1998.
We completed the sale of our window operations in 1996; however,
we retained certain liabilities related to these operations. We
believe that existing reserves are adequate to meet all
liabilities that may arise related to the discontinued
operations.
Substantially all of the operating assets are held, and revenue
generated, by Trus Joist MacMillan a Limited Partnership. The
Partnership regularly distributes cash to the partners to fund
the tax liabilities generated by the Partnership at the corporate
level. All other distributions of cash by the Partnership are
dependent on the affirmative votes of the representatives of the
minority partner. Accordingly, there can be no assurance that
such distributions will be approved and thereby be available for
the payment of dividends or to fund other cash expenses.
INDUSTRY, COMPETITION, AND CYCLICALITY
Our engineered lumber products continue to gain market acceptance
as high-quality alternatives to traditional solid sawn lumber
products. Through 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. We believe that this
trend will continue well into the future.
<PAGE>
No other company possesses the range of engineered lumber
products, the levels of service and technical support, or the
second-generation technologies of TimberStrand-Registered
Trademark- LSL or Parallam-Registered Trademark- PSL. There are,
however, a number of companies, including several large forest
products companies, which now produce look-alike wood I-joist and
laminated veneer lumber products. Several of these companies
have announced capacity expansions. These look-alike products
are manufactured using processes similar to our oldest-generation
technologies.
We believe our network of manufacturing plants and multiple
technologies position us as the low-cost producer of engineered
lumber. While competition helps expand the market for engineered
wood products, including those manufactured by us, it may also
make the existing markets more price competitive. Traditional
wide-dimension lumber, however, remains the predominant
structural framing material used in residential construction and
is the primary competitor for our products. Commodity lumber
prices historically have been subject to high volatility, and
during prolonged periods of significant lumber price movements,
our prices have trended in the same direction.
Our 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 consistent
with the seasonal pattern of the construction industry as a
whole, our sales have historically tended to be lowest in the
first and fourth quarters and highest in the second and third
quarters of each year.
RECENTLY ISSUED ACCOUNTING STANDARDS
In June 1998, the Financial Accounting Standards Board issued
Statement of Financial Accounting Standards No. 133, Accounting
for Derivative Instruments and Hedging Activities. The Statement
establishes accounting and reporting standards requiring that
every derivative instrument (including certain derivative
instruments embedded in other contracts) be recorded in the
balance sheet as either an asset or liability measured at its
fair value. The Statement requires that changes in the
derivative's fair value be recognized currently in earnings
unless specific hedge accounting criteria are met. As of January
2, 1999, we had no material derivative financial instruments
outstanding. We plan to adopt this statement in the first
quarter of 2000.
YEAR 2000 ISSUE
We are working to resolve the effects of the Year 2000 problem on
our information systems, including the financial and transaction
systems, production and process control systems, and compliance
status of suppliers' systems. The Year 2000 problem, which is
common to most businesses, concerns the inability of such systems
to properly recognize the process dates and date-sensitive
information on and beyond January 1, 2000. In 1997, we formally
began a series of assessments, company-wide tracking, and
awareness programs. These programs ensured company-wide
awareness of the Year 2000 issues, standardized the inventory and
assessment methods, and tracked the results of the assessments.
<PAGE>
We have successfully educated key personnel on the issues,
completed our inventory and assessments of the Year 2000 risks
for financial and transaction systems and production and process
control systems. A number of applications in the financial and
transaction processing systems are compliant due to recent
implementations and upgrades. We have been configuring and
installing Year 2000 compliant systems as part of our program to
provide significantly improved functionality in our business
support software. This program is intended to provide the
infrastructure for future growth. Our core financial and
reporting systems are not yet fully compliant but are scheduled
to be complete by late fall 1999. To date, no significant issues
have been identified in connection with our assessment of our
primary production and process control systems. We expect to
complete replacement of the identified non-compliant equipment or
software by the third quarter of 1999.
We are also in the process of surveying vendors, principal
customers and business partners regarding their Year 2000
compliance. Contingency plans have been identified or are
currently being developed in the event either our systems or key
third-party systems are not compliant.
While we currently believe that we will be able to modify or
replace our affected systems in time to reduce any detrimental
effects on our operations, failure to do so, or the failure of
our major customers and suppliers to modify or replace their
affected systems, could have a material adverse impact on our
results of operations, liquidity, or consolidated financial
position in the future. The most reasonably likely, worst-case
scenario of our failure or our customers or suppliers, to resolve
the Year 2000 problem would be a temporary slowdown or cessation
of manufacturing operations at one or more of our facilities and
a temporary inability on our part to process orders and billings
on a timely basis and to timely deliver finished products
to customers. We are currently identifying and considering
various contingency operations, including identification of
alternate suppliers, vendors and service providers, and manual
alternatives to systems operations, which will allow us to
minimize the risk of any unresolved Year 2000 problems in our
operations and to minimize the effect of any unforeseen Year 2000
failures.
We currently estimate the cost to complete compliance should not
exceed $3,000,000. These costs will be expensed as incurred,
unless new software, equipment, or hardware is purchased
that should be capitalized in accordance with GAAP policy.
FORWARD-LOOKING STATEMENTS
This management's discussion and analysis includes a number of
"forward-looking statements" as defined by the Private Securities
Litigation Act of 1995. Forward-looking statements include,
without limitation, statements regarding the adequacy of our
reserves for discontinued operations and other statements
regarding our beliefs. Investors are cautioned that forward-
looking statements are subject to an inherent risk that actual
results may vary materially from those described, projected, or
implied herein. Factors that may result in such variance
include, among others: changes in interest rates, commodity
prices, and other economic conditions; actions by
competitors; changing weather conditions and other natural
phenomena; actions by government authorities; technological
developments; future decisions by management in response to
changing conditions; and misjudgments in the course of preparing
forward-looking statements. Other factors are discussed in our
filings with the Securities and Exchange Commission.
Microllam-Registered Trademark-, Parallam-Registered Trademark-,
TJI-Registered Trademark- joist 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 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
<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: May 8, 1999
<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 April 3, 1999
Commission File Number 0-7469
TJ INTERNATIONAL, INC.
EXHIBIT INDEX
Exhibits Page
- -------- ----
(27) Financial Data Schedule Document 2
<PAGE>
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS DATA SCHEDULE CONTAINS FINANCIAL INFORMATION EXTRACTED FROM
THE TJ INTERNATIONAL, INC. BALANCE SHEET AT APRIL 3, 1999, AND
FROM ITS STATEMENT OF INCOME FOR THE THREE MONTHS ENDED APRIL 3,
1999. THE INFORMATION PRESENTED IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS
</LEGEND>
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 3-mos
<FISCAL-YEAR-END> JAN-01-2000
<PERIOD-START> JAN-03-1999
<PERIOD-END> APR-03-1999
<CASH> 66,575
<SECURITIES> 0
<RECEIVABLES> 137,779
<ALLOWANCES> 376
<INVENTORY> 73,607
<CURRENT-ASSETS> 291,532
<PP&E> 657,882
<DEPRECIATION> 271,761
<TOTAL-ASSETS> 714,699
<CURRENT-LIABILITIES> 80,635
<BONDS> 142,390
0
13,170
<COMMON> 18,140
<OTHER-SE> 202,741
<TOTAL-LIABILITY-AND-EQUITY> 714,699
<SALES> 217,042
<TOTAL-REVENUES> 217,042
<CGS> 164,134
<TOTAL-COSTS> 164,134
<OTHER-EXPENSES> 29,314
<LOSS-PROVISION> 0
<INTEREST-EXPENSE> 2,219
<INCOME-PRETAX> 11,489
<INCOME-TAX> 4,194
<INCOME-CONTINUING> 7,295
<DISCONTINUED> 0
<EXTRAORDINARY> 0
<CHANGES> 0
<NET-INCOME> 7,295
<EPS-PRIMARY> .45
<EPS-DILUTED> .42
</TABLE>
