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19 5 3 PLAINTIFF'S EXHIBIT GF-1981 r-'i The RUBEROID Co^ v *A S*. I mm 67&*ifea/i oaf 1276q FINANCIAL HIGHLIGHTS 1953 1952 Net Sale* ..................................................................................................... Net Earning* .............................................................................................. Net Earning* per Share of Stock (Note 1)....................................... Percentage of Net Earning* to Sale*.................................................... Cah Dividend* Paid................................................................................. Cash Dividend* per Share of Slock (Note 1).................................. *74,433,553 } 4,576,073 $ 6.67 6.1% t 2,286,161 5 3.50 *66,058.400 * 4,045,677 * 6.41 6.1% * 2,061.554 $ 3.50 Stock Dividend Paid................................................................................. Number of Stockholders at Year End......................................... Current Assets ........................................................................................... Current Liabilities .................................................................................... Current Ratio.............................................................................................. Book Value per Share of Stock (Note 2). . ................. Working Capital per Share of Stock (Note 2).............................. Wages and Salaries .................................................................. Total Federal and Local Income, Payroll and Property Taxes. 5% 5% 3.092 S22.618.833 2.952 $22,714,507 S 1,901.074 S 1.948.903 11.9 to 1 $ 65.57 11.7 to 1 S 62.23 S 30.21 S 30.23 S20.192.933 S17.374.914 S 6,257.612 3 5.S91.265 Note 1: The 1953 and 1952 computations oa "Net Earutngs per Share of Stock" ore cased on toe average nittnaer of snares out standing curing eich rear, ao.iustec for the stock dmcechs atstr.outec st toe cicse of raca vear. Ga LPe sine neats. "Cast. Oiv.cencs per Share of itock" were equivalent to 33.33 to 1953 aoa 33 2" at 1952 Note 2: The 1953 and 1552 computations oo "3ook Value" ittc "'T'orktng Capital" per soa.-e o: tit-:., u:e oaten on tie outo.'e;! :oares outstauctng at Lae eod of 1953. t'S* data \ / ;s.6.wi tJ soi*.* aitan af ;t n iAw baoli ^ am* -o> rt# ?'po+r . -vsac.nf purr'll* p t ir->< . dsn v o i.stt-n itcuntr aaa*d 5v ia* cat*s?t GAF 12761 ANNUAL REPORT FOR THE YEAR ENDED DECEMBER 31 1953 The annual meeting of stockholder? \%ill be held on April .30. 1934. All stockholders are cordial 1\ invKeJ to attend. A notice of the meeting, a proxy solicited bv the management, and a :>ro\> <:)[ be mailed to eant holdei of .*3pital x. Stock Transfer Agent The Bank of > ork. New 1 ork Stock Registrar The Cha.se National Bank. Nei* i ork General Counsel Hannon. Evans* >olein & Hatpin, 'eir York iitflitors Price & aterhim.te Ji; Co.. N etc }ork !BTTTTT:M|.|1JffA E.xrcuii ic Octets 500 Fifth 4rmue \rie ) ' irk It. V > GAP 12762 YOUR EXECUTIVE COMMITTEE *.k vRiEi F E \:r.H el:>*_r F.RiOER C.^ E ; ' c ' Ec Vt ,..7:3 < , 1 LD'.V .RD M P v : ~ ' ' .r, J. ... 00.-JA0 0F DIRLCTORS Herbert abrvh^m '"nr-,,-: \'DRE L M 5 E N 5 1 H \RLE5 F \> J..hN J F. CM. '-C'-HCL F Ki=P. 's* . . J M J < ' Lr ,R- OfT/Ctf> H z a e e ?. r i r ; r- v^r- 3. .m.o1'- =*.' P' > 5 i - r R C D 1 .. ^ . : i> \H> T-` m \> H u. ) Gap 12763 TO OUR STOCKHOLDERS THE certified financial ?tatements on page? 12 and 13 will show the result; of your company'; 1933 operations and it? financial position at-the end of the year, w hich we believe you will find satisfactory. Building activitv throuzhout 1953 was stimulated by full em ployment, hizh consumer income and a grow, inz population. In the last quarter, there was a moderate':^ reduced demand toi bullions materials, but our operations remained at a profitable level curing the clusinz months. Earnings .Net eartunzs after taxes in 1953 amounted to 54.576,973. equal to 56.67 per share or. 085.857 snares, compared with net earning,n 1C|32 of 54.945.677. equal to-56.41 oer ;hare wi 631. loo share?. In botn years the shai:enre-ent the average number outstanding cut ns tne sear, adiusted lor stock cm idem:? ntributeu in 1953 and 1952. respective!v. T axes In 1953. '.our lomoanv'- F t -1 o I : j' ectaied 55..3oi'.3 1'f i mcluc .-iz e\ - nmrt;a\ o; 5165.Ui)Ui. or 54 per cent ol earn ins- before taxes, in comparison with 5-5.077.102. or .56 per cent, in 1952. There :s every likeli hood that Congress will lighten the corporate tax this year by allowing the excess profit; tax to expire. Figure 1 on page 4 illustrates the portion of our earnings provided for Fed eral and local income, payroll and property taxes during the '.is; decade. Dividends dour company ha? paid uninterrupted utvidends since 1889. an accompln-hmem shate1 bv only 28 other corporations with common stock listed on the New fork 5tock Exchange Our complete 67-vear camtai structure and itiiitienc recoio apnea:? -m naze IS. in 1955. a- ;n in52. vv idenu? totaled 'Fill ;>et -jure n j?li. Tin? amour.: :- equivalent in no 33 ner ?nate m I1-'53 jnc 5 3 2" :r. 1952 ba-eit m: the average r.umbe: ?njres outstanding .n eai.r o: tne veins atte: a11 usnnz tor ihe 5k jerr ois:r rule: u both v"jr; !:; our .>|- tni >n. in- noiicv ot u: in.z b ,.i-n .mu -toiK ten,;; i- :Pe mc-t 'iiitmr metnuii 11?11 muting j cuirett! vear? nrcot. 3 GAF 12764 when a portion of net earnings has been re invested in the capita] assets of your company. Our stock dividend policy, initiated in 1948. has enabled us to expand and improve opera tions from our own earnings. Total assets in creased from -$26,908,195 on December 31. 1947 to 549.302,788 at the end of 1953. ff cash dividends had been increased by an amount equal to the value of the stock divi dends. your company could not have expanded as rapidly as it has. without borrowing monev or selling more stock to the public. The stockholder either may sell the stock dividend for cash, or hold the new- stock so as to participate in tuture earnings. As you are undoubtedly aware, the receipt of our stock dividend by stockholders does not constitute taxable income within the meaning of Federal income tax laws and regulations now in effect, unless and until the share; received are sold. As slock dividends are paid in proportion to the number of shares held b> each st->-kholder, the equ.iy of each stockholder m :ntotai assets of the company remains the -an:;, but is represented by a larger number of -hate-. Stockholders .> ho retained both theit orict.tj! shares and all stock dividends paid durini tile six years, now hold 154 share; for ever-. I'Vi thev owned at the beginning of 1943. Stockholders The number of ;toekholders increased Horn 2.952 io 3.092 during 195 5. \o one stock holder held more than 5 per cent of the 685.357 shares outstanding at the close of the year. A: the 1953 annual meeting in South Bound Brook. New Jersey, stockholders holding 77.9 per cer.i >: outstanding shares were present in person or 1 947 -i* ... sa mI9Bn3m5Ji :9*9 - \ r --o* 5 < s_ IfllJtl'in mmiQ : sis -.95 ' _______ ____________ 1932 ~19~ ?: 77* ' ~~ - __ v > i: zzszuwnmammmmmmmmmmm* Fli.l Kf ! -j 4 GAF 12765 4 1 944 I 945 1946 1947 : 948 1 949 1950 1951 195: $29,630, f 58 $30.714.634 $39 191,286 $52.3/4.927 $57.477.033 $50,267,987 $61,925,242 $64,293,894 $74,413,55] EfJ FICL'RE 2 repre?eme_i by prow and v otec in suppoit of our management. Following i? 2 DreakJown showing the staiu.- of lour compa.nv 9 'ownership at the end of 1953: 90 held 1.000 snare? or more 94 held 500 shares or more 901 held l'.'O shares or more 2.007 her: iess than 100 shares Sales In 1953. for the te.ntn successive year, w.tii r.e exception o: 1949. vour comnanv e?:ab- oner a ?air? recoin. Net sa;e? Ior the vea: arni'iur.tei: to '74.4-11.55 1. a 12.3 r-r --o' rt': e a -e o\ e: 1952. Durinz M'53 ,%e -".lereo tit'., a .i.t'j.'-:-- azreement tor tt.- tnanufactuie. at a new ;actorv located :.u Denier. Colorado. cl '..no Ruberoid line of a?pnalt roofing and shingle proJucts which w'.l be distributed by us to our customers in the Rockv Mountain area. To diversify oar line of products, "e macte a contract ".til Owen.s-C.'m.ng F.berglas dorp to function as a national distributoi of their Fiberzlas buildmz trsuiatior niodacts. It is expected that the4- ce1. eionments w;i! augment our sales. The steadv growtn ot net -ales cuttnc t.ne oast ten '.ears :S shown in F.zute 2 above. \s noiec. .r. the taole >r. naze 11. the price mhe\ of Ruberoid pi oduets in l'~,53 :r-. teased o:1 > > 4 laomts o. c r i1 '4 ;. . n.e: - as toe _ C Department o! Ljtto: '-surne: F'.o- ;ni'-\ ro4e 31.9 noints. GAF 12766 FIGURE 3 F:zjre 5 on pas? 3 illustrate? ho* everv dollar we received trom -ale? wa? utilized :r; 1953. Capital 4 ppropriations At-'pronrtation* to increase productive :a*_11. ties, 'c imorove mecnanizauon and to bioad^M our itre nr product* in 1953 were S4.029.4v3 compared .v:tn S3.422.061 in 1952. Fo.-ir. 1944 tnrough i9o3. vour corr.panv ha? apr.-*"yrsated 527 617 634 for these pu:po*e. a?nown :.n hgure 4 on pa^e 7. Inventories Ai'n-.'Ujn *. our ompanv e\pet terAeo no <.;rn .a.". :r. j-'och m.j an adequate ?unpA of raw ma:*`r'.aj? .ur l'-o ). ?yrre p t i-.e- er'- a::tiian ir. ic,52. Invent'':- e? at the vear-er.d totaled 5~.^30.* 274. cun::-.:.ed w;:h xr`>.`. 5o4 -v. l1--b-: 31, 1952 The tota. value oi our rnv^nt-'-ne? i? ma.n- tamed at anproximaielv one "north'? ?a.e?. a iev^l vs hich '>ur operating ev-ertence *hnv. to d* I'on^r. a; w >. v-: ade'ju.it^ . nr:o.:i: 'oerirton? uj i^rny "44 ^r.i ..Lr customer*. Resenrvh Rjo^roi'; ^- <-: j a.A -* ob'. ini'* `!`\ uiv j: ^ ..Li:; B-.yn. Btuor\. \r>v\ jet-ev. lev o:< rev- : > t > *' : mnrov e the - :u a !::\ a:'" arrearar.ee : n :r.i Its re-eai - :i :u -a: an. r-; .;o 'e: tat' he:-: i . :::: j: 6 GAF 12767 During the \ear our customers were -uppliei: with .in improved windproof asphalt shingle il a tvpe which has gained wide popularitv -inre a- original introduction in 1939. We also began to manufacture a new reflec tive insulation tor home, farm and industrial use. Employee Relation* \* in former vean, employee relations were mutiiaieo bv tne police to compensate ade quately. provide the most continuous employ ment consistent w ith business conditions, main tain good working conditions, encourage ad vancement. and foster triendly relations and coopera'ion. During 1953 our average number of emnlovees was 4.561. Of these 3.0 have been with the com nan 25 -j r- nr ioniser. a:i.J/'O" ` have continuous sen ice records of 5 nr more vears. At the year-end. vour comnanv s inv-'s;. merit per employee amounted to approxi mately >9,860 The company's labor-management relation' were generally good. A six-months strike at East St. Louis. Illinois, seriously affected sal,*. ;n that area. However, all labor asreementwith unions were settled on a reasonably satisfactory basis. Total wages and salaries paid during 1953 amounted to >20.192,933, an increase of >2.318.019 or 13.0 per cent over 1952. The table on page 11 shows that the average hourly earninss index of Ruberoid employees has climbed 153.5 per cent since 1941. Figure FlClltn i 7 GAF 12768 HOW WE USED EACH DOLLAR RECEIVED FROM OUR CUSTOMERS IN 1953 FtCIRE 3 6 on page 0 tv.cture; the sharp upward trend of pavroll costs during the past decade. Emptovee benefit; include a paid vacation orogram. a group insurance plan, a retiremem plan. Federal old-age insurance, unemploy ment insurance, workmen's compensation in surance, a.nJ pensions. Expenditures made by tne companv d_- \ng the vear tor such employee benefits totaled 52.113.061. The contributory group insurance pia.o was liberalized to meet in part increased hospital and medical charges, \imos; all eligible emniovees are now protected bv tnis life, accident anc sickness insutance. On December 1. 1^03. 36.3 Der cent of all fm.plcv ee; eligible to naiticmate hid enrolled .r. the letiremen; alar, .now :n ts 101h '.ear. The results of the continued efforts of ail employees o prevent accidents were apparent from the 'iucii-jr. in lost time accident fieouency rate per million man hours from 10.91 in 1952 to 5 11 ir. lr,53. In recognition o: an outstanding safetv record, awards were re ceived from the following: National Safetv Council. Asphalt Roofing Industry Bureau. State of Pennsylvania Department of Labotand Incustrv. totate of New Jersey Department of Labor. Safetv Counc.i of Erie, Pennsviv ania. and Baltimore Safetv Council. Baltimore. Mary ianci. Executive Chnmes Herbert Abraham '-'as emcted -lair-run or tlie Board ot Directors a: tii* . ., -r- tire vwar. He has been associated wth the companv for more t.uar. vear- ar.n n.o.i p:e- jen: 8 GAF 12769 30 years. He continues as Chairman ot the Executive Committee. Stanley Woodward was elected President. He was co-founder of Continental Roofing and Manufacturing Companv which was acquired in 1928. He has served the company for 26 years as \ ice President and Director, and has been a member of the Executive Committee since 193?. E. J. O'Leary, a Director and Vice President in charge of sales, was elected a member of the Executive Committee during the year. Since joining the company in 1926, he has been closely associated with sales and manufactur ing activities. Vi till am J. Van Akin. Manager of Manu facturing. who has had 28 vears of manufactur ing experience in our industry and who has been associated with the company since 1949, was elected Vice President in charge of manufacture. Outlook After more than a decade of unusually high economic activity, 1954 may be a year of transition. Governmental agencies predict that total new building--residential, farm, commer cial. industrial and public--is likely to be about 4 per cent less than in 1953, and that new housing starts, in excess of 1,000,000 units in every year since World War II. may drop as much as 10 per cent. Since agricultural in come has been declining due to world wide conditions, expenditures for farm buildings are expected to fall below last year. Although new building activitv has an in- Sr5.965.7Z9 FtClRE h 9 GAF 12770 lluerice on xour cumpanv's operations, th-market for repairs and maintenance is of greater importance, since it normaliv accountfor over 60 per cent of Ruberoid s sales. Expe rience shows that more renovations ami repairs are usually undertaken when new buildinu activity slow? down. U ith a growing popula tion receix ing the highest income in our history, it seems certain that repair- and maintenance of existing structures w ill be increased in 1954. \our company is actixeh stimulating new markets throueh impruved product- and inten sified promotion. TC'e have enlarged our .-aietorce, and with greater sales effort and con tinued emphasis on quality and service, we anticipate that 1954 will be a good vear for i our company. 5 our management is acutely aware that none of Ruberoid's past growth or future promi-e could be possible without the loyal support stockholders, customers and emolovees. for which we are sincereiv grateful. Respectfully submitted. February 11, 1954 Chairman of the Board Veic York. 5. } . February 11. 1 954 TO THE STOCKHOLDERS OF THE RtBEROlD CO. in connection urith our examination o/ the financial statements o f The Ruheroid Co. as at December 31. 1953. as reported upon in our certificate appearing on page 15. ire have also reviewed the statistical data set forth in the Chairman's letter ami elsewhere in this annual report. Such information, in our opinion, has been com piled property from (he records and reports available to the corn pany . PKICE W \TERIIOlM-; A UK 10 OAF 12771 HOW STOCKHOLDERS, EMPLOYEES. CLSTOMERS A\D GOVERyytEST SHARED DLRI\C 1953 (Index 1941 = 100) Stockholders 1 .isn Di\ idend* *l ear Pe- Share Index 1941 1942 194-1 1944 1945 1946 1947 1948 1949 1950 1951 1952 1953 *1.75 1.15 1.15 1.25 1.25 2.00 2.75 3 25 3 58* 4.24* 4.o6 * 4 39* 5.14* 100 Vi 66 *> 7'"1 114 157 1S6 204* 242* 266 * 279* 294* VWoimir.:: :ha: itn-Kholder neM al! - i' ..irr.j; ir. a.;- i.uzn to hi* or.-inal hoi Empl ovees Oostol-1..' ir: Index of tn- Entir* Nation * W^raze Hour]' Earmnzs ip.ae\ of Ruoroin Pmplovr-; 100 1 lu 3 117,6 1196 122.3 132.6 151.3 163 4 161.8 163 4 176.5 180.4 181.9 100 115.1 127 4 128.5 133.8 15.3.2 175 3 193.2 199.1 208 7 224.6 239.2 . 253 5 Ba.^1 on - ala Irroi 3urau 01 laDor Stari't - 'i 'or 1941 1 fa 2 !04' 1944 1645 1946 1947 1943 1949 1950 1931 1952 195; Customers Price Index Ruperoid Products ` per ton i 100.0 97.3 100 0 101.6 90S 100 7 112.2 125 0 123 1 123: 124 * 131: 135 t Gm ernment 1 Faiera.. rtale aid Loia. Taae* 5! 317453 2.290.041 1.734.092 1.593.685 1.799.098 2.501.006 5.3.33.046 4 139.233 3 447 359 5.u8c. 710 0.215 '36 5.391 263 6.257 612 0. iex 100 o 1 59 3 05 4 27 7 99 0 1 37 6 > 1 *; 2 >'s 5 13? " :-o 0 142 0 12; 1 344 3 TM r-i n-.' ii GAF 12772 cmmirza Comparative Balance Sheet ClRRE.NT ViiETS. Assets Dec. 31 1933 ................. 3 7.357.704 Lmted states Government securities, at co?t.............................................. ................. Accounts receivable. less re?erves 'Note 1'.............................................. ................ Inventories 'Note 2^.................................................................................... .............. Prepaid expenses ........................................................................................ ................. 1.131.000 5.633.910 7.330.074 465.945 Total Larrent Asset?............................................................................... ................ SJ2.6IS.333 Loan receivable, secured bv mortgage? ............ ................................ .............. Funds for improvement of plant facilities 'Note 3'................................. ............ 707.500 2.125.ii00 Properties, plant? and equipment. 'e- reserves 'Note 4 ..................... S49.302.7S3 Dec. .31 1952 3 7 5S2.90G 60 2.'>30 7.033.353 6.90a. 592.317 523.71 ;.5f- 2.415.000 21.624.728 $40.734,275 Clrrem L.'ibil.t:es Liabilities Trade accounts pavabie ...................................................................................................... Accrued `wages and commission?............................. tcunar- labilities 'principally propers, franchise, social secuntv ami with held taxes 1 .. ............................................................................................................ Estimated T-der^. income and e\c**s? prunes ;a\e? 'after deducting L Z Treasurv notes 56.334.000 in 1953 56.c3i.7"Vl 153 ... Total L.urr?nt Liabilities .... Reserves for guaranteed roofs and for compensation insurance Lanital stock --authorized. 958.364 snare? ar no 'a: -a; ie --;??uen and outstand ing at end of 1953. 635.357 ?nares. at e:.H of 1953 ood.lvS ?r._re? .......... Earned surplus. per ?tacement on oaae 1 397.131 61-V567 -I < ->o ' n 15t *;o9 S 366.955 451.535 3.131 2-*: 12 GAF 12773 Comparative Statement of Earning' Year 1953 Year 1932 Sales, less returns, discounts and allowances................................... .......................... 3T4.4-S3.553 Cost of zoods sold.................................................................................... ........................... 57.6o6.929 Gross profit on sales.................................................................. ........................... S16.316.624 Selling, advertising and administrative expenses............................. ........................... 7.031.783 $ 9.784.S41 Other income, net iNote 5i................................................................. ........................... 151.742 S 9.936.5S3 Provision for Federal taxes on income 'Note 6>.............................. . ........................ 5.360.510 Net earnings for the vear Note 71 .................................... .......................... $ 4.376.073 $66,053.40 51.2S9.9S8 S14.76S.412 5'79 617 S 3.933.795 H3Q84 5 9.122.779 5.077.102 4 045.67' Comparative Statement of Earned Surplus Year 1953 Earned surplus at beginning of the vear.................................................... ................ 515.393.061 Add--Net earnings for the vear............................. .......... Proceeds of sale of investment in The Rubero o Co Ltd., less e>atnd!ec caottal zatns tax............................................................... ....... 4.576 07" $20 469.1 34 Deduct--Cash dividends of S3.50 per share. . . . 5 2.236 I'm Stock dividend of 5fc 1 Note 3 ... ! OOS.OO; 9 4 113 065 Earned surplus at end of the vear > see Comparative Baiarce wheel1 . 916 3 54 069 Year 1932 $14,735,554 4.645.07" 914.6.32 $19,740.9! 1 9 H.'Vtl 35. :.77,i to 5 3.34".p," $13,391 v-; , nr Tin*'* >r tj.'* ' t-.ta "art -t M ! < !! 13 GAF 12774 mami'im-mm .Notes to Financial Statement? Non l \. Kc'Putii 1 Ustom-T* ............................................................................................................................................................................ >'in*irv Oil u-Jin*: ;n 1952 pro- -*d.- of sale .>! mv -tment .n The K u n^roii !: . Emptov*e;, prmc;pallv advance pavmrnr- under retirement plan....... .... !.*-* R,--.tvc>. tor u*n dis-ount* und doubtful jt^otmc*................................................ ... Oer. 3 I 1933 5 \"22. 5: JIG'''"2)2 *o~. > o : 57.390 :.2 /Mo 5 5.6 r,. )'o I Jen.. 3 l 1932 ' 'n! - i * '. Note 2 lv^EM0RIE5 Rav. raater:als an.j factor' uppnes.............................................................................................................. Products m process of manufacture............................................................................................................... Firnsheo product; ................................................................................................................................................. Dec. 31 1953 ? 4.203.39'. "2; -ip <c7 Dec. 31 1952 5 J'>54'-. ~i4 IV j.joo Inventory* are priced at the lo'-er of cost hrst ;n, hrst out1 or market value net realizable values of ra *neu r -> ' ui t; jno current *epiai.ement cost of rav* materials and supplies ' Note 3 NriTF 4 Pursuant to j *.>iution of :h- Board of Directors. L S. Government s^- urties aggregating 52 425.000 m oar va:u- lav* been *e2.r-zaire as ut De.-pm/er 31. 1953 for pa vment of improvements to pidnt tact!:tie? authorize i bv :fte Boar nut not 'orrp.ete*: j? a: t.nat date As at December : 1. 1952. 52.415.000 in L 5. Government or -uc.n purpose v%**re ;eTraa:e : PROPEPTtEs. P-V'T; OD E >U-1P 'I E' T Dec. 31 1953 Dec. 31 1052 At repfodii?':v * values as appraisee b\ The Am*r'<`jn Appraise "orr'. and 19 ;e* -uo*equen: aa-jicor* jt -o-t ............................................................ * '''2" ................... r':n-r ir-e*. -a!- or ^em.'ier vl ;} !8............. vj. ,r. .i- v*mir*.i ~v The Arr,e-.,-j:i >. - ............................................. ....................... . -jj '.rr:a-:' ................... R^ier*.e* to -enuce reproductive value? to -mind va. ie? a> arprj' iiDreauen: )"Preciat:on and nepietion.............................................................. 'th-r OiN- Note 5 [ > O 'I \c* . '.ash oivioeno' * -ived l:om The R.j.ne-niu '.o _'i Interest retei'-n ..................................... 'vi sceilaneo :> iin**- ,n<.ofr.e. ... . ................... ...................... Le?4 Past 'C-ni-'e '-ost unoer -mploveev' -'t:r*nr': - i* 1953 - - ' 2 ' }052 :- Nfrrt 6 P 'o > --vo 'or F-uerai ta ve on n 'ome -- .. 11<:*- r r "v.nts 'at ( * **5 1 ' j i 1 * - ;o. tiv ci v The prpv i jions for 195*. a no 1952 i:~ u j eo ..pen --i p-nrn; : -1 - ' . n- : i n . - - meinod of apprOM.xateiv .?9, 45G. 1 an.; v-1 11 :i\-1' Note 7 E av :ir:ir: j-?'-1 at on mo ' 1 *>-- 2 ' pr -;2 : ! *1 N OTE 8 14 GAF 12775 PRICE WATERHOUSE <1 CO. T6 Pine street new YORK Februarv 5, 1954 To the Board of Directors ot The RL BEROID Co. In our opinion, the accompanying statements present fairlv the finan cial position of The Ruberoid Co. at December 31, 1953 and December 31, 1952, and the result; of its operations for the years then ended, in conformity with generally accepted accounting principl-s applied each year on a basis consistent with that of the preceding iee: Our examina tion of such statements W3S made in accordance with generally accepted auditing standards and accordingly included such tests ot the accounting records and such other auditing procedures as we considered necessary in the circumstances. PRICE VP 5TERHOU5E i CO. arm i t.~ GAF 12776 iumi\ unniHi Ten Year Snnimarv 1953 Net S ales ............................................ 374.4S3.55 o ^ age: and ialanes........................... ... ..... 520.193.933 <_o>; of Ravv Material:................................. ........................ 5 39.407 466 Celling. 5cJvending and Administrative Expenses. Less Other Income. Net Excluding TC'aze? and Salaries - ... ................ .................. 3 3.077.32 3 Depreciation and Depletion...................................... ................................................. 3 1.369.243 Earnings Before Federal Taxes on Income.............................................................. 5 9.9 36.58 3 Federal Taw on Income Income Tax......................... ....................................... .................... 5 5.195.510 Excess Profit* Tax.............................. ........................................................... $ 165.000 Total .................................................................................................... ? 5.360.510 Net Earning? ......................................................................................................................... S 4.576.07 3 Percentage of Net Ejrmngs to idles............................................................................ 6 !~ *Ne: Earnings per inure of itock 1 Average Number M ihare: Outstanding During'War ............................................. ? 6 6" Cash Dividend: Paid ............................................................................ ............... 5 2.2S6.161 *Na?h Div tue.nd: per ihare or Stock 1 Average Number of Shjre; Outs tana- .r.g During 5 ear . . ......................................................................................... 5 itock Di v mend ?j id .................................................................... ......... . .. 3 53 5M Total ..................................................... ........................................ S49.3o2.73S Properr-. Plant and Equipment Net' .... .... 523.371 ,73 ^ ork:n3 .am: ; ........................... Ratio L-jrrent A??e: to Cjrrent Liabilities. itockhoiaers Eau;tv............................................. ................................................. 520.~17.75-> ... ............... ii.o to : ... 544 97 5.572 4 Boo-. V ai ue per ihare of Stock..................................... ..................... 3 '>5 57 Numoer of stockholder? at dear Enc. .... Average Number of Emolovees..................................... .................... -I J92 4 5c 1 4j ;; ., r ^ ^' r s i -> du '"'l n ' :r,4J ) MAN 1952 66.0.58.400 17.374.914 34.976,931 2.439.447 1.644.329 9.122.779 4.S22.102 255.000 5.677.102 4 045.677 6.10 n.4l 2.061.554 5 27 sn 46.. o4._oo 21.024.723 20."65.599 11 7 to 1 42.cS3.460 o2 23 2.952 T.-Ov 1 = 51 64.29 3 3 1 16.191 0V* 35 '7 '4 ' :2 2.221.727 i.n',.22 9.415.56 5 4.913 09433.0'"'' 5.396.047 4.017.482 6.20 '.5 5 * p;> l ^ i 3 02 5 m. 39.031.00: 19.292.7,2 io.4 lcM2r 11 3 to : 35.791.''75 S3 2. c 61 4.25 ' GAF 12777 1550 61.925.J415.965.T29 53.16" 650 2.0S4.020 1.261.148 9.450.695 3.995.333 350.000 4.345.333 5.105.312 2 20 .5 r. 1.63 l.o97 2 75 10". 57.531 415 1`.155 '36 1 4 47 2 15' 72 1 : 2 - i "-no =|4 2.52c 4.553 1949 1948 50.267.987 13.333.719 26.767.367 57.477.023 15.272.030 30.434.138 l.20.765 1.144.377 7.096.259 1.941.973 1.073.915 3.704.967 2.397.959 - 2.397 959 4.193 ]0i) o - 5.542.731 . 3.542.731 5,162.256 9 OQ 65 1 422.145 8 12 1.292.360 2.32 10<"r 35.709.92" 15.0 53 7o0 17.022 912 11 4 :3 1 50 20d i 13 49 23 2.427 4.057 2 11 10". 30.302.062 13.661.2'J5 15.209.332 11.6 to 1 2 7.429.953 44.3 2.333 4.574 1947 52.374.927 13.973.538 27.54 3.333 1.732.279 1.011.220 3.064.005 3.260.642 - 3.260.642 4.S03.J63 9 2" 7.34 1.09 3.966 1 73 26.903.195 12.607.160 12.490.150 3 2:31 -j. j6'.'.5o2 4.5 44 2. ;\4 4 4< 2 1946 39.191.236 11.129 653 20.936.634 1.302.091 737.511 5.029.397 2.076.201 - 2.076.201 2.953.196 1 .hr'c 4 32 '95.612 1.50 22.649 294 11.611 610 9.46 3 722 7 1 :-> 1 19.351 13o 12.59 2.24C 4.'.'V0 1945 50.714.654 3.968.07 i ! 7.300.737 1.253.06S 957.149 2.235.607 594.439 SIS.900 1.412.439' 32 3.113 2.7" 1.34 497.257 31 20.079.433 -- vr-.ui 0 1 45.216 5 .' * > 1 1' -y.3 6"1 54 57 5.455 5. -157 1944 2S.o30.15J S. 133 35 i M `>`'0 1.2 30.715 767.507 2.018.259 562.105 630.000 1.192.165 326.694 2.9". 1.15 497.55" .51 19.654.269 9.350.143 S.401.91r, 2 5 to 1 17.4'2.'41 52 4-4 1 272 3 3i.'9 GAF 12778 Thr UBCKOID Co Sanimary ol Capita! Structure and Dividend Record ot The RL'BEROfD Co. and Predecessor Companies* 1837 18SS 1389 1890 1S91 1392 139 i 1S94 1395 1396 1397 1398 1399 1900 1901 1903 190-i 1904 1905 190o 1907 long l*i>o 19 lu 1911 1912 1913 1914 1915 19 lo 1917 19! 8 19 19 100., 1921 19 25 1924 j 4nom "Out* V-*' . .57 )T 1'.'.U"0t 10.0's lO.OOOf 10.000+ 10.0008 in.oi.104 [ fu llJO+ 10.000* 1(1 0<y*+ 10.(1 >3+ 11.317* 11.3'21t \ 11.3264 11.826: 11.3263 11.328: 11.3H; 11.980; 2 5.995; 44.397; 44.397; 44.397; 44.397; 4-1.597: 44.5o0; 44.450; 46.310: 47.758; 4 ... DO 5 4~.75S; 49.411; 40.902; 49.9o2;' 49.9c 2; 49 9o2; 55.14J: 35.142: 55,145; C ;ntr- -- 33.00 f)l) 3.30 1 on 1.50 1.5n 2.9" 2 "" 2.0" 2.50 75 10 00 12.00 15.00 2U.Lt! 13.00 10.0m 9.o0 9 9" 7 u<! 4 ij i 9 n<1 Q Ml] 3 00 7.mO 5 00 4 25 5 25 " 00 5 uu 2.0u 4 ' '0 4.0" 4 m" 4.00 4 00 T.,ri. D.s.oerj, -- -- 330.000 3(1.000 SO. 000 30.000 15.000 15.0i)i.i 20.000 20.0"" 21.27o 20.542 44.328 1 13.26k 141.912 177.420 23o.ooO 215.640 2 39.950 ;?*.575 :99 57 j 110.779 `>99.57 5 599.57 5 399.240 355.600 327.670 143.274 202.971 250.729 296.466 249.310 99.924 149.843 199.34S 140.568 I40.5o8 140.568 1925 1926 192. 1928 1929 1930 1931 1912 MU 1934 1935 1936 1937 Mi8 19 39 1940 1941 1942 1043 1944 1045 1946 1947 1948 1949 1050 . 05 i 1952 105; c>j <i toJint Du: n< * -r 35.142: 35.142; (35.142; 155.376b 118.732)8 141.541^ 143.251X 139.847)8 133.577)8 132.602b 132.602b 132.602b 132.602b (132.602# (597.30o# 397.306* "597.306# 397.306a 397.306b 397.30oa ;97 30n= ;*7 3' m= :"7.3"is 597.306* 397.soob 1 437.536* \ 437.586* ,431.344* i 431.344b - 529.47S= \ 529 47Sb f 555.95 1 = ; o5 1. 19Sb 1 o5 5.193= 1 5.357 = 5- 54 no 4.00 \2 "" /2.00 4 no 4.00 4.00 4 00 2.00 1.00 1.25 2.50 4.00 J 45a /I 85a 6) 1 in 1 30 1 75 i.15 1.15 1.25 l 25 1 MM 2 75 3.256 3 255 0506 1 50. 0( i._- ; 5.1. 5'.4n.5no 14". 563 1 70 2S4 ii.152 47 1.923 3o6 04 57 - j.M ,4 559. ;s:: 2o7.155 1 V5 on 1 lo5.752 331 505 5 50.408 \ 59.671) ) 755.941 233.683 437.580 517.148 096.161 457.470 457.47m ,0- '*7 4-7.257 795.012 1.093.90^ 1.292.360 1.422.145 1.084.697 1.35) :r. J. JDI 554 2 2 S'-. : 1 -1J * \>scu oi 'The ManJar i Pj:n: ^ jerse' anc in 1921 the- name oi ;ne ,jne* 'is ' Pir \ aiur. :7c 00 Hj' Va;jc. ccH? / - V, Pi: ' 4.J* Tout !!' I'Jtri',; pa. J r \ " ; ~ ir. :ir .a.- ' ir;nu - ere .Kumm n . y"' nin^-i ro Thr R l 8 E R" 1D ' ' * a - 7n- run u* I k*7\ - - j - ---------- m.. P. j? ! ,f> -to *. J: ^ :or. i J P ,j; S~c -Io n - IrTC . ! "0 1 111 ^9 n n n M o' T\ I , 4,mu-ii-i 'U i ^ Asphalt and Tar Produces \?r>hal: fhin^ie- and -pI.oe? ijenumr' Rl BER^'D Rod R^<.nrj; In.'-jiaitns ^idinu Built-up R-JOfiiii Felt? and Adhe?.ve? Roof Coating? and PIa-tjCemeu;* Preservative Coahns? and Paint' TC'aterproonn? Felt? and Membrane Canal and Pond Liner ' Craw5 Space Cover P.ne Lm^ Protective Felt* Automotive Felt? and Board? Electrical Insulating Tape 4sbesfos-Cemenf Products A?ne?lo?< .emenl r*h:ntr1 *- and r-1-i imBuilding ITurd? Corrugated M>ee?; Insulation and Fireproofing Products A.-L-e-m' Pine *.-\er Molded H.gh Pre-.-ore A?heto? Paper- Rj .hoard- and \ 1. 11! ' j - t- \?^e?tO' Cj.-k-: il-'jrd A-^?: - Flier a: .: In- :ia: Rede-': iai. Papers and Felts Km:: Lj. o.. a ?j' erRrnurvi: krait Pa-'ba 2.-m Pa cr eate:: mote'- !'ir-aj Pa - - ? Drv r - : -r C D'v F- m m -r - - Dmm.m F- - canzz^ 1!> GAF 12780 The RUBEROID Co. Executiie Offices 500 Fifth Avenue XIW YORK 36. X. Y. BALTIMORE 2i. MD Highiandtown. P(J. Box 5166 DENVER 16. COLO. 156 TC 5oth Avenue MJLLI5. MASS, Curve Street ST. LOUIS 15. MO. 9215 Kiveniew Uri\e SALES OFFICES CHICAGO 1. ILL. 307 N Michigan Ave. ERIE. PA. PO. Box 1123 MINNEAPOLIS 11. MINN. 50 Lowry Ave. Xorth SALT LAKE CITY. UTAH 1674 Beck Street BALTIMORE. MD 16TH ST. PLANT. ERIE. PA. EAST ST. LOUS. ILL. MILLI5. MASS. DENVER. COLO PLANTS SOUTH BOL'ND BROOK. N. J. LAKE PLANT. ERIE. PA. JOLIET. ILL. MINNEAPOLIS. MINN. MOBILE. ALA. HYDE PARK. VT. DALLAS. TEXAS P 0 Box 5607 KANSAS CITY 3. MO 7600 Truman Road MOBILE 3. ALA P.0. Box 1367 SOUTH BOUND BROOK. N Canal Road DALLAS. TEXAS GLOUCESTER CITY. X. J. KANSAS CITY. MO. ST. LOLTS. MO. SALT LAKE CITY. UTAH .c- -- -- __ __ ' o su' ^ OTf O 0`NVtt ^ ,-- - '' - ,,;s. Git - IU!S .... o chiugo joLitt - OltSiS UVf O 06 si 1.0U1S ., w#* -JKt* 10U OTmjtnbouwd rt iiiT'0u LEGEND V PUN'S 5a.Si C6CC = S cAC:C-S ore 5al5 Occ'C:5 EXEC'J'ivE OFFICES DALLAS O _o - - or.iS 20 GAF 12781