SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
April 27, 1994
(Date of Report, date of earliest event reported)
VALHI, INC.
(Exact name of Registrant as specified in its charter)
Delaware 1-5467 87-0110150
(State or other (Commission (IRS Employer
jurisdiction of File Number) Identification
incorporation) No.)
5430 LBJ Freeway, Suite 1700, Dallas, TX 75240-2697
(Address of principal executive offices) (Zip Code)
(214) 233-1700
(Registrant's telephone number, including area code)
Not applicable
(Former name or address, if changed since last report)
Item 5: Other Events
On April 27, 1994, the Registrant issued the press release attached
hereto as Exhibit 99.1 which is incorporated herein by reference. The press
release relates to the announcement by Registrant of its 1994 first quarter
financial results.
Item 7: Financial Statements, Pro Forma Financial Information
and Exhibits
(c) Exhibit
Item No. Exhibit Index
99.1 Press release dated April 27, 1994
issued by the Registrant
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
VALHI, INC.
(Registrant)
By: /s/ Steven L. Watson
Steven L. Watson
Vice President & Secretary
Date: April 27, 1994
EXHIBIT 99.1
PRESS RELEASE
FOR IMMEDIATE RELEASE: CONTACT:
Valhi, Inc. William C. Timm
5430 LBJ Freeway, Suite 1700 Vice President - Finance
Dallas, TX 75240 and Administration
214/450-4212
VALHI REPORTS IMPROVED FIRST QUARTER RESULTS
DALLAS, TEXAS . . April 27, 1994 . . Valhi reported a net loss for the
first quarter of 1994 of $700,000, or $.01 per share, compared to a net loss of
$60.3 million, or $.53 per share, in the first quarter of 1993.
Sales were up 10% to $189 million as each of the Company's four business
segments reported higher sales, and operating income increased 13% to $18.6
million. In the refined sugar segment, higher volumes more than offset the
effect of slightly lower prices. Earnings declines in the solid wood portion of
the forest products segment, primarily attributable to the Company's reduction
in logs offered for sale, more than offset significant improvements in medium
density fiberboard ("MDF") earnings. MDF operations benefitted from both higher
volumes and sales prices. Fast food earnings were hampered by relatively worse
winter weather early in 1994, while increased promotion of value-priced
sandwiches aided sales comparisons and dampened margin comparisons. The
significant improvement in hardware products sales, earnings and margins
resulted from higher volumes in each major product line.
The repayment of certain high-cost debt during 1993, funded in part using
proceeds from lower-cost borrowings, was a significant factor in the 25%
reduction in interest expense. The unfavorable comparison of general corporate
and other items includes a $1 million 1994 decline in market value of the
Company's holdings of fixed-income investments.
Valhi's aggregate equity in losses of its publicly-traded unconsolidated
affiliates, NL Industries, Inc. (49%-owned) and Tremont Corporation (48%-owned),
was significantly lower in the first quarter of 1994 than in 1993. The 1993
loss attributable to affiliates included an $84 million provision for an other
than temporary decline in market value of NL stock.
The geographic mix of income in 1994 comprising the relatively nominal net
pre-tax loss resulted in net income tax expense for the period.
Valhi, Inc., headquartered in Dallas, Texas, is a diversified industrial
management company engaged in the refined sugar, forest products, fast food and
hardware products industries. Valhi is also engaged in the chemicals and
titanium metals industries through its interests in NL and Tremont. Valhi's
common stock is traded on the New York and Pacific Stock Exchanges under the
symbol "VHI."
* * * * *
VALHI, INC. AND SUBSIDIARIES
SUMMARY OF CONSOLIDATED OPERATIONS
(UNAUDITED)
(IN MILLIONS, EXCEPT PER SHARE DATA)
THREE MONTHS ENDED
MARCH 31,
1993 1994
Net sales $171.3 $188.9
Operating income $ 16.5 $ 18.6
General corporate and other, net .5 (2.3)
Interest expense (12.0) (9.0)
5.0 7.3
Equity in losses of affiliates, including $84 million
market value impairment charge in 1993 (95.6) (7.6)
Loss before income taxes (90.6) (.3)
Income tax benefit (expense) 30.3 (.4)
Net loss $(60.3) $ (.7)
Net loss per common share $ (.53) $ (.01)
Weighted average common shares outstanding 114.1 114.3
VALHI, INC. AND SUBSIDIARIES
BUSINESS SEGMENT INFORMATION
(UNAUDITED)
(IN MILLIONS)
THREE MONTHS ENDED
MARCH 31,
1993 1994
Net sales:
Refined sugar $ 91.2 $104.2
Forest products 39.6 40.0
Fast food 26.1 26.7
Hardware products 14.4 18.0
$171.3 $188.9
Operating income:
Refined sugar $ 6.1 $ 6.8
Forest products 5.4 5.1
Fast food 1.9 1.6
Hardware products 3.1 5.1
$ 16.5 $ 18.6
Equity in losses of affiliates:
NL Industries, Inc. $ (9.5) $ (5.4)
Tremont Corporation (2.1) (2.2)
(11.6) (7.6)
Provision for market value impairment of NL stock (84.0) -
$(95.6) $ (7.6)
VALHI, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(IN MILLIONS)
December 31, March 31,
1993 1994
(Unaudited)
Current assets $394.4 $362.4
Investment in NL and Tremont 74.9 69.7
Other noncurrent assets 231.3 234.1
Property and equipment 203.3 208.6
$903.9 $874.8
Current liabilities $364.8 $328.3
Long-term debt 302.5 309.0
Other noncurrent liabilities 29.1 29.8
Stockholders' equity 207.5 207.7
$903.9 $874.8
Common shares outstanding 114.3 114.3
SUMMARY OF CONSOLIDATED STOCKHOLDERS' EQUITY
THREE MONTHS ENDED MARCH 31, 1994
(UNAUDITED)
(IN MILLIONS)
Stockholders' equity at December 31, 1993 $207.5
Net loss (.7)
Dividends - $.02 per share (2.3)
Currency translation and other 3.2
Stockholders' equity at March 31, 1994 $207.7
