Document MG59RGJ8XpXwgNwpgyLw522zk

I The RUBEROID Co. 77th Annual Report/1963 GAF 12305 RUBEROID PLANTS, MINES AND QUARRIES A. Hyde Park, Vermont B. Millis, Massachusetts C. Wheatland, New York D. Newburgh, New York E. Bound Brook, New Jersey F. South Bound Brook, New Jersey G. Gloucester City, New Jersey H. Erie, Pennsylvania 1. Baltimore, Maryland J. Charmian, Pennsylvania K. Delta, Pennsylvania L. Fairmount, Georgia M. Hartwell, Georgia N. Savannah, Georgia O. Mobile, Alabama P. Kremlin, Wisconsin Q. Joliet, Illinois R. Kansas City, Missouri S. St. Louis, Missouri T. Minneapolis, Minnesota U. Calvert City, Kentucky V. Dallas, Texas w. Houston, Texas X. Denver, Colorado Y. Long Beach, California SALES OFFICES Mobil* Alabama / Long Beach California / Denver. Colorado / Savannah, Georgia Joliet. Illinois / Baltimore. Maryland / Hagerstown. Maryland Millit, Massachusetts / Detroit. Michigan / Minneapolis. Minnesota Kansas City Missouri / St. Lou*. Missouri / S Bound Brook. New Jersey Newburgh. New York / New York. New York / Wheatland. New York Erie. Pennsylvania / Dallas. Teias / Houston, Texas '.P5?n 7 PRODUCTS Building Products Division asphalt roofing and SIOING MATERIALS Asphalt Roll Roofing--smooth. mineral surfaced Asphalt Shingles--all types Asphalt Sidings Plastic Root Cement and Roof Coatings BUILT-UP ROOFING AND WATERPROOFINGS Asphalt, Asbestos and Tarred Roofing Felts T/NA 200* Roof Membrane Universal Base Sheet Special Roofing Bitumen Fiberglas* Roof insulation ASBESTOS-CEMENT ROOFING AND SIDING Asbestos Roof Shingles Oura-Colori clapboard and weatherboard siding Dura-Shake* weatherboard Siding UNSATURATED FELTS GYPSUM WALLBOARD, LATH AND SHEATHING BUILDING AND waterproof papers FIBERGLAS" BUILDING INSULATION Floor Tile Division FLOOR TILES Vinyl-Asbestos Asphalt ACCESSORIES Cove Base and Corners Feature and Reducing Strips Adhesives Reefing Granule Division ROOFING GRANULES FILLERS, MICA Industrial Products Division ASBESTOS-CEMENT PROOUCTS Corrugated A-C Board Stonewall* Board Panelstone* Board INSULATION-- PIPE COVERINGS, ETC. Molded Pipe Covering and Blocks--Caisilite Fiber Glass Pipe and Duct insulation T/NA 100* Insulation Jacketing Asbestos Psper--RoHboard-- Millboard Insulation Cements Insulating Tape AUTOMOTIVE PRODUCTS Sound Deadening Felts Dash Insulation Assembles Tuftmg Felts Foundation Board PIPE LINE PRODUCTS Asbaitos Pip* Lma Pain Flaxibla Rock Sh.ald Board ,, Innar and Outer Glaa* Wrap .COAT. TAR PRODUCTS Refined Coal Tar Coal Tar Pitclr. ` 'T.M o( Ow-ni-Cfn'IJ. F.to'fl" CorP GAF 12306 I The President's Message TO OUR STOCKHOLDERS: In 1963, Ruberoid shipped the largest tonnage of products in its history. Building products sales were the second largest and income from this Division increased slightly over 1962 despite a highly competitive situation in the asphalt roofing industry. Sales and income of the Granule Division rose to new highs reflecting the successful expansion of this operation. Results in the Floor Tile Division were not favorable, due mainly to unsatisfactory operating conditions, lower sales and severe price competition within the industry. An intensified effort in all phases of cost reduc tion enabled the Company to show an improvement In net income from operations over 1962. A special charge of $576,919, primarily representing product development and start-up expenses deferred in prior years, reduced net income for the year by 31 cents a share. During the latter part of the year, progress was noted from measures taken to improve our floor tile operations. New manufacturing equipment has given our floor tile product lines quality and appearance second to none in the industry. An accel erated product development program is proving successful. Competition in the build ing materials industry was vigorously met by Ruberoid with new products and cost reductions. Completion in 1964 of a new roofing granule plant at Annapolis, Mo., will prove advantageous to the Company's granule customers and to its own roofing operations. Also scheduled for completion in 1964 are facilities at Gloucester City, N.J., for the production of high temperature industrial insulations under a new process, which will place Ruberoid in a favorable position in this specialized industry. Additional benefits are anticipated from Ruberoid's investment in Cabot Titania Corporation which has started operating its new plant at Ashtabula, Ohio. An encouraging improvement in the operations of Cumberland Chemical Corporation occurred during the latter part of 1963. Your Management is confident that its plans and policies for Ruberoid's growth are sound and constructive. No effort is being spared to strengthen the Company; no potential is being overlooked to improve its earnings. Based upon the present outlook, 1964 should show gains in all operating divisions of the Company. To all who have an interest in Ruberoid's welfare--stockholders, employees and customers--I extend our sincere appreciation for their loyal support. Respectfully, 4' E. J. O'Leary Chairman and President FINANCIAL HIGHLIGHTS Net Sales.................................... Net Income ................................ Net Income Per Share............... Cash Dividends........................... Dividends Per Share................. Net Working Capital................... Stockholders' Equity ................. Equity Per Share......................... Shares Outstanding at Year-End IMS $117,392; 981 $3,762',207v ..- $2.0*! $2,9^6,987 : _ $1.60 $31,546,5?^. *Excfuv of tpocitl ehft'e* tS7S,919, oqwvol*flt to t.JI por 1962 $120,972,053 $3,724,015 $1.96 _ $3,796,334 U. -o i5,373,692 $68,651,458 $36.93 H864,292 J' 0pth and ehract* of Tray#rt>rt* Mrbl*>fitMully capiyroo by Rwbaroid m vmyi.atoasiot fioer t>l*-*AKanea* 'COpIrOA ol Compsey I SitCutir* oh>ct| GAF 12309 3 Operations in 1963 m SALES ANO INCOME Net income for 1963 amounted to $3,762,297. equal to S2.02 per share on the average number oi shares of capital stock outstanding during the year. These amounts are exclusive of a special charge o* S576.919. equal to 31 cents per share, primarily for developmental and start-up expenses deferred in prior years m connection with certain new products. Net income for 1962 was S3.724.015 or $1.96 per share The average number of shares outstanding during 1963 and 1962 were 1.860.800 and 1.898.096. respectively. Net sales for the year 1963 totaled S117.392.981 compared with $120,972,063 in 1962. FINANCIAL CONDITION The Company s financial condition at the dose of 1963 was stronger than at the close of the preced ing year. Working capital at Oecember 31, 1963 in creased to $31,546,526 from $26,373,692 at the end of 1962. Ratio of current assets to current liabilities was 4.9 to 1 at the 1963 year-ena as against 3.1 to 1 at December 31. 1962. During 1963. the Company negotiated an inter mediate term loan in the amount of $7,000,000 to replace short term obligations which had been in curred for acquisitions and investments. Ruberoid increased its ownership in Cumberland Chemical Corporation during the year from 40 to 50 percent. Your Company is co-owner with Ar Reduc tion Company, incorporated, of this producer of vinyl resins. Additional purchases of Ruberoid stock on tne open market during the year increased the Com pany $ holdings of such shares to 65,300 at the 1963 year-end Stockholders equity at the close of 1963 in creased to S37.12 per share from $36 93 per share at the prior year-end. DiVlQENOS AND STOCKHOLDERS Dividends totaling $1 60 per share of outstanding stock were paid in 1963. Dividend payments *n 1952 amounted to $2.00 per share On December 31 1963 there were 8 912 holoers of the Company s outstanding shares which compares with 8.524 holders at the 1962 year-end INDUSTRIAL RELATIONS Work stoppages occurred at two of the Comna-v $ 27 plants in 1963 Operations at the Joiiet. Hiircs floor tile plant were interrupted by a strike on 18 Due to a number of factors which made con. tmued operation of this facility economically im. practical under existing conditions, the Company officially ceased operations at this plant on July 3 1963. Operations at the Kansas City. Mo . plant were interrupted for a total of 25 days Labor negotiations were successfully resolved at other locations during the year and the Company considers its re1ation$h p witn the various unions representing employee groups as favorable ORGANIZATION Board Changes-At the Annual Meeting of Stock holders on April 26 1963. three new members were electee to the Company's Board of Directors to fill existing vacancies. The new directors are. Thomas H. Der--ody. Vice President--Finance The Ruber oid Co . Elmer N. Funkhouser. Jr.. Executive Vice Pres'cent American Metai Climax, inc and Gavm K. MaeSam. Chairman and President. Gnsteoe Bros.. Inc Former members of the Board who aid -ot stand for re-election at the 1963 Annual Meeting are George F Bahrs who retiree ourmg the year as vice president and treasurer of the Company after 35 years of service E N Funxnouser consultant wno At -- - gn- in Fill el 1964 th.| plnt now na#r coAst-bCtiOA it Anneooiis wilt prov.ge i substantial idd l'on to The Company * roofing grannie production capacity At fj- right e'-ncip*l w"'t 1 Cabot TiTiA i Corporation * " Hama procaa* tita^m d>or<e p>ant at Aintabw-a Ohio >n vhich Ruberoid Own* a on*.hirp interest Almost a#ry man-mtac object ot a wh'i* color Containi this essential coloring agent 4 ) had served as a director since 1959. Frank J. McGm* ley a retired officer of the Company and a director since 1952 and Edward M Rarlton a retired officer and a director since 1937 In 1963 the Company suffered the loss of two gentlemen, each of whom had a long and chstinguished career with the Company Mr Stanley Woodwaro. wno joined Ruberoid m 1928 and served as president from 1954 to 1958 and a director since 1929 died on September 1. and Mr Frank J McGm. ley one of the founders of American Asphalt Reef Corporation which Ruberoid acquired m 1952 died on July 29. The Company acxnowieages with deep appreciation their invaluable contribution to Ruoer. oid s progress and welfare Executive Chenge*-A number of executive changes were made during 1963 at both corporate ano divi sional levels Mr Thomas H Oermody was elected to the newlycreated position of Vice President - Finance. He was formerly Vice President and Comptroller. Mr O A Maggia. Secretary of the Company, was elected to the additional post of Treasurer Mr Robert N Ettlinger joined the Company as Comptroller He was previously Controller of the Papermate Division of the Gillette Company and Controller of Eversharp, Inc. Mr. Carl L Eddms, Assistant Secretary, was elected to the additional post of Assistant Treasurer oa tne Company Mr. James C Murphy was appointed Vice Presi dent-Sales Floor Tile Division PLANT AND equipment Negotiations were completed m 1963 for the leasing of a plant for the production of roofing granules at Annapolis. Mo The plant ano its equipment will be owned by the City of Annapolis wnich is financing its construction tnrough a $5 000 000 issue of in dustrial revenue bones Scheduled for completion ir s NET SALES 'Million* of 0lia*i NET INCOME ! Odlard STOCKHOLDERS' EQUITY tO.ll.ra ... Slwrat PROPERTY. PLANT ANO EQUIPMENT (Militant al bollard WORKING CAPITAL iMilliani ! Dallard i GAF 12311 late in 1964. this facility will be an important addi tion to Ruberoid s granule operations The plant <s strategically located to provide more efferent serv ice to roofing manufacturers m the south and south west as well as to several of the Company $ roofing plants. Construction was commenced during 1963 of a new plant at Gloucester City. N.J., for the produc tion of calcium silicate high temperature industrial insulations which will utilize a new fully-automated process developed by Ruberoid research. The plant is expected to be *n operation by mid-1964. Capital appropriations for various improvements in the Company's plants in 1963 totaled $4.071.011 compared with $7 461.696 in 1962. Expenditures for repair and maintenance amounted to $6,668,651 in 1963 as against $6,768,725 in 1962. Plant, property and equipment at tne end of 1963 was earned at a net value of $42,323,695 compared with $42,244,948 at the end of 1962 Depreciation and depletion charges in 1963 totaled $3,661 609 as against $3,312.273 in 1962. RESEARCH AND DEVELOPMENT Ruberoid s research and development activities continue to assume greater significance. In the building materials industry. intensification of competition and the determination of manufac turers to give the homeowner tne oest possib-e product emphasize Ruberoid s consisted policy o` no substitute for quality As the ieaaer >n tne De velopment of asphalt roofing products. RuoeroiC has been responsible for numerous advances in ai>weather roof protection. Most notable of tnese products are 'Self-Sealing' asphalt shingies wmer are sealed against wind and weather, the Wmajammer"8' shingle developed chiefly for tne extensive re-roofing market, and the 1963 adoition to the Ruoeroid roofing line :ne "Sovereign' a heavy weight, wind-safe shmgte. Designed for new con struction as well as re-roofing, this premium shmgie answers the need of the builder, the applicator ano the homeowner for a blend of long-iastmg. trouolefree roof protection and massive, colorful beauty I An0ther Ruberoid Pudding products (me was mented with the introduction at the year-end of *Dura-Shake J Siding. Tns newest member in the fa.-ri'y of Dura-Color- ail-mineral siding features ceep stnations with a gramy texture that closely $lmuates wood shakes. Developed for both new anCj re-siding applications, `Dura-Shake 1 answers *ne moumng oemard for a shane-type sioing with tne adoed advantages of permanence, tougnness cj,mensiona( stability and minimum maintenance. Research and development have proven of great importance to Ruberoid s progress m resilient floor,ng as 1963 headed a new era m styling and pat terns m ffoor tile New materials and unusual manu facturing techniques will result in dramatic accom plishments never thought possible m this field. Completion m ?963 of the Company s program of expansion and modernization of its floor tile facil- tes nas substantially strengthened the Company $ ability to undertake fundamental research ana product development. Ruberoid's product development efforts are concentrator: on vinyl asbestos floor tile which has replaced asphalt tiie as the industry s largest seller The initial results of these efforts appeared m the latter part of 1963 as the Company introduced two new styles- Mosaicflor and Trav ertine A third new pattern-- Brocade --now ready for diStnoutiOh. will be followed by Other exciting designs High-temperature industrial insulations $ a spe cialized field m which Ruberoid has become in creasingly active Expanded production of these materials by a new process m 1964 couples with new arrangements under which Ruberoid will dis tribute fioer glass industrial insulations, wilt sub stantially strengthen the Company's position in tnis market. As a large producer of a broad line of building materials and industrial specialties. Ruberoid must of necessity carry on numerous research programs Tangible results of the continued progress made m these areas in 1963 will become apparent m 1964 through new and improved products and new ap plications for existing materials. At MoW'Ct'or By RuB*fO-a `leovofl io m ao-t yok'*H 3'a$ ino JC'fl 'l SiSlirt vinyl tOBIOS O' *>gs m '<I.rt| Beicw Rjbo'0`0 T NA 20C! 'oof ^3 c Ow Port s TtO`i' ` `--i a-2 ascestcs GAF 12313 7 FINANCIAL STATEMENTS INCOME AND INCOME RETAINED IN THE BUSINESS 1963 1962 Revenues: Net sales............................... Other income, net Costs and Expenses: Cost of goods sold............ Selling and administrative Depreciation and depletion Federal income taxes Net Income for the Year $117,392,981 266.240 117.659 221 94.279 548 13 241.767 3 661.609 2.714.000 113.896 924 3 762.297 ! j $120,972,053 88 833 121.060.886 98.027 572 13 456 026 3 312.273 2 541.000 117.336 871 3 724 015 Speciel Charge: Primarily development and start-up expenses deferred m prior years in connection witn certain new products less related federal income taxes Net Income for the Year Less Special Charge 5 i Income Retained in the Business at Beginning of the Year | 576.919 3.185.378 34.583.037 ; 3 724 015 34.655.356 Cash Dividends Paid--$1 60 per share 11963) and $2 00 per share (1962) ................. j12 976 987) (3 796 3341 Income Retained in the Business at End of the Year $ 34 791 428 j S 34.583.03" 8 12314 FINANCIAL POSITION AT DECEMBER 31 Current Assets: Cash ............................................................................................. Marketable securities, at cost (which approximates market value)..................................... Receivables, less allowances.................. ....................... Inventories, at lower of average cost or market- Raw materials and supplies ... ... Finished products and work m process Prepaid expenses.......... ................................................ Total current assets............................... .............. Less--Current Liabilities: Accounts payable...................................................................... Notes payable to banks and others Accrued expenses .... ... federal income taxes .... Total current liabilities Working Capital............................. Investments and Advances, at cost (Note 11 Cumberland Chemical Corporation Cabot Titama Corporation . .... ... Property, Plsnt end Equipment, at cost, less accumulated depreciation and depletion of $43,606,860 through 1963 and $40,381,744 through 1962 ................................................ Working Capital and Other Assets . Less 4Vi*/o Notes payable to banks due 1965 to 1968 (Note 2) Reserve for guaranteed roofs ... Reserve for compensation insurance . Deferred federal income taxes and other credits Stockholders' Equity Represented by: Capita) stock--authorized 3.000.000 shares of SI par value --issued 1,915.592 shares (Note 4) .. . Income retained m the business, excluding amounts transferred to capital stock ................... Less-- Capital stock held m the treasury, at cost-- 65,300 shares (1963) and 51,300 shares (1962) 1963 $ 6.778.655 59.794 16.314,272 7.967,834 7.855.053 665.731 39.641.339 3.963 809 2.207.322 1.923.683 8 094 814 31.546.525 4 196.785 2.600 000 42.323.695 80.667.005 7.000.000 1.763 799 79.378 3 134 520 11.977,697 $68 689 308 $35,718 082 34 791.428 70.509.510 1.820.202 $68,689,308 1962 $ 3.187.500 114.743 18.818.578 7.121.483 6.956 587 1.229.722 37 428 613 4.526.994 4.500.000 2.125 948 901.979 12.054 921 25.373.692 3 160.000 2.000.000 42 244 948 72.778 640 1 932 677 130 505 i ,a64 coo 3 927 182 S68 851 458 S35 718 082 34 583 037 70.301 119 1 449 661 $68,851 458 GAF 12315 NOTES TO FINANCIAL STATEMENTS December ji. iw NOTE 1-INVESTMENTS: During 1963 the company acquired from Air Re duction Company incorporated, an additional 10/o interest m Cumberland Chemical Corpora tion. As a result of this acquisition, the company and Air Reduction each own a 50*/ interest in Cumberland The company s investment in Cum berland at December 31, 1963, based upon recent unaudited financial statements, exceeds its equity in the net assets thereof by approximately $155,000. No permanent impairment of this investment appears to exist as Cumberland, which com menced operations in 1960. has been in a period of product development which is virtually com pleted. The company s investment in Cabot Titania Corporation consists of 20.000 shares of 5*/ cumulative convertible voting preferred stock and a note receivable of $600,000 due December 31, 1973. with interest at 5'/j"/o. The company is also contingently liable as guarantor of notes payable of Cumberland Chemi cal Corporation in the amount of $1,500,000 and Cabot Titania Corporation in the amount of $2,500,000. on September 30, 1965. The quarterly instalments mature at the rate of $280,000 in the first year. $490,000 in the second year and $980,000 m the final year. The loan agreement contains certain restrictive provisions none of which are significant under present conditions NOTE 3-LONG-TERM LEASE: On October 1, 1963 the company entered into an agreement with the City of Annapolis. Missouri to lease, for a period of twenty years ending on September 30, 1983. a roofing granule plant presently under construction in Annapolis. Annual rentals under the agreement will be approxi mately $385,000. commencing on September 15. 1965, plus certain other costs and expenses. The lease is renewable, at the company's option, for fifteen five-year periods at reduced rentals. The company has an option to purchase the plant and property, under certain specified conditions, among which would require a change in existing laws of Missouri to empower the City of Annapo lis to sell the facility. NOTE 2-NOTES PAYABLE TO BANKS: Notes payable to banks amounting to $7,000,000 are payable in quarterly instalments commencing NOTE 4-STOCK OPTION PUN: The company's incentive stock option plan for officers and key employees dated April 26 1957, TEN YEAR REVIEW-1984-1963 ALL DOLLAR FIGURES EXCEPT THOSE PER SHARE ARE EXPRESSED IN THOUSANDS tear MATERIALS ANO OTHER MET SALKS COSTS-HCT WAOES ANO SALARIES INCOMC BEFORE TAXES FEDERAL INCOME TAXES NET INCOME Anotiat Per ShoeO+4 /. to Safes DIVIDENDS Amount Foe Sham* Stock 1954 76.424 1955 1956 1957" 82.134 76.360 85.257 1958" 118.377 1959- 127.308 i960 120 077 1961 119 119 1962 120.972 1963 117.393 45.087 49.590 46.181 50.946 77.519 81.177 77.190 76808 80.021 77.008 20.236 8,861 21.098 8,967 19.509 8.117 21.568 9.792 29.312 8.376 30.883 12.087 30.957 8.717 30 705 8.412 31.374 6,265 30.247 6,476 4.232 4.456 3.825 4.570 3.521 5.457 4.049 3.915 2.541 2,714 4.629 3 19 6.1 4.511 3.05 5.5 4 292 2 90 5.6 5.222 3 26 6.1 4.855 2 56 4.1 6.630 3 49 5.2 4 668 2 45 39 4 496 2.35 3.8 3 724 1 96 3.1 3.762'- 2 02" 3.2 2.497 2.960 2.960 3.191 3.042 3.764 3,810 3.824 3 796 2.977 1 75 2.00 2.00 2.10 2.00 2.20 200 2.00 2.00 1.60 2.5J'o - - __ - - *Adiufto to' pooling o* mteraafa 9* Tn# RubB'Oid Co with Tha Fynitnovaer Company m 1957 and 1954 ana *i|h Mij'ie Tit* Corporation o* America 1954 arid 1959 "Etciu*** o< special charge ol S576 9i9 eqgi*eient o S3' par share GAF 12316 I a$ amended April 29. 1960, provides for the grant ing of options not exceeding, in the aggregate, 200.000 shares of capital stock at not less than 950/9 of the fair market price at the date the op tions are granted, with the stipulation that no one employee be granted an option for more than 10.000 shares. The optionee may exercise up to 40/ of the shares subject to option in each of the first two years following the date of grant and the remainder at any time thereafter up to ten years from the date the options are granted Options become cumulative. if not exercised, for the duration of the option period. Particulars relating to shares of capital stock issuable under options granted under the plan follow: Optfes fefe M Shnmt ywfer #Jnn dkmwth, iso June 25, 1957 -$28.50 Feb. 25. 1958 - $34.25 Feb. 24, 1959-$40.00 Jan. 26, 1960-$38.75 Oct. 14. 1960 -$31.75 Apr. 11, 1962-$35.50 May 22. 1963 - $27.00 20,017 2,400 5,900 19,650 15,100 5.500 - 68,567 ferine 1,250 500 1,800 2.000 1,500 - 7,050 SJtnwn vnrin? nerinn Oncamfcnr SI. IMS 18,767 2,400 5,400 17,850 13,100 4,000 21,350 82,867 biniMtii e OiMwtsr SI. ISO 18,767 2,400 5,400 17,850 13,100 3.200 8.540 69.257 No options were exercised during 1963. (n all cases the option price represents 96% of the market price of the stock on the date the options were granted. At December 31. 1963, there were 91,625 shares available under the plan for the granting of additional options. The proceeds of the shares sold have been credited to the capital stock account. YEA* 1954 1955 1956 1957' 1956' 1959i960 1961 1962 1963 AVERAGE NO. OP SHAKES 1452.284 1 479.986 1.479.986 1 600.332 1 S93.875 1.901.276 1.908.739 1 911.903 1.898.096 1.860.800 STOCKHOLDERS' EQUITY P* Amnuwt Sfe#n $ 49.485 33.44 51.037 34 48 52.369 57.358 65.443 35.38 35.82 34.50 68,528 35.99 69.542 36.41 70.324 36,74 68.851 36.93 68.689 37.12 TOTAL ASSETS PROPERTY. plant and EQUIPMENT OEPRECIATION ANO DEPLETION CURRENT ASSETS CURRENT WORKING LIABILITIES CAPITAL 54.576 28.635 2.240 25.595 2.408 23.186 56.248 30.121 2.479 26.127 2.403 23 724 57.592 62.528 32.319 35.725 2.553 2 951 25.273 26.803 2 271 2 146 23.002 24.657 80.306 38.301 3.170 41,706 8 743 32.963 83.413 38.815 3.161 42.598 10.089 32.509 81.613 38.451 3.213 41.002 7 679 33 323 81.557 37.720 3 194 40.957 7 360 33.597 84.834 42 245 3.312 37,429 12.055 25 374 88.762 42.324 3.662 39.641 8.094 31.547 '9* nwnib- ol Awtltjnomo 4u'nng yr 'O' i^fl.lBr.pH jrock DM v' Hoc* d'vidond <r y*' '9S4 0 * -D => GAF 12317 " SOURCE AND APPLICATION OF FUNDS--1963 Addition! to Working Capital Net income for the year leas special charge..................... Charges to income for depreciation and depletion, not requiring a cash outlay................................................ Increase in deferred federal Income taxes and other credits .......................................................................... Proceeds of intermediate term financing........................ Deductions from Working Capital Cash dividends................................................................. Net additions to property, plant and equipment............. Increase in investments and advances: Cumberland Chemical Corporation............................ Cabot Titania Corporation .......................................... Cost of Treasury Stock acquired..................................... Reduction in reserves...................................................... Increase in Working Capital....................................................... $ 3,185.378 3,661,609 1,270,520 7,000,000 $15,117,507 $ 2,976,987 3,740,356 1,036.785 600,000 370,541 220,005 $ 8,944,674 $ 6,172.833 PRICE WATERHOUSE A CO. 60 BROAO STREET, NEW YORK, NEW YORK To the Board of Director* of The RUBEROID Co. In our opinion, the accompanying statements present fairly the financial position of The Ruberoid Co. at December 31. 1963 and the results of its operations for the year, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year Our examination of these statements was made in accordance with generally accepted auditing stand ards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary m the circumstances. Jsnuiry 28, 1964 'K-0 BOARD OF DIRECTORS E J O'Leary t Chairman Herbert Abraham a Thomas H. Dermody Etmer N Funkhouser. Jr Harry C. HachmeiSter William H. Kershaw* Gavin K MacBam Seymour Mtlstem* LeRoy A. Petersen Lyie L. Shepard* William J Van Akin f aeutv* Cmmtt*a 'Chairman of Eaacutiv* Committee OFFICERS E. J O'Leary Chairman or (ho Board ol Oirpctors and Praaidant Thomas H. Dermody V.# Pr#a*deM-Fiacd Richard N Funkhouser Vico hr#*i0+nt~OoftOrat Manager Roofing Gram*!# Division Julian O. Heppes V-eo Pr#.d#ni-Gon*r*l Monagr Floor Til* Division Kenneth R MacDonald V co President-Purchasing Seymour Milstem Sonio' V co Prasioom-Coroorat# Development Frederick K Sweeney Vico P'OtiOom-Gonorsi Manager Bu>i0<ng and induetrai Product* Division William J. Van Akin $*n-0' Vica Praaidanl-Oparation* Oscar A. Maggia Secretary and Treaswrar Robert N. Ettlmger Comptrollar Thomas A. Dent Aspirant Vies Preaident-Oporatiooa Carl L Eddms Assistant Secretary and Aaaiaunt Traaawror Transfer Agent. Registrar General Counsel Auditors. . . The Bank of New York, New York .The Chase Manhattan Bank, New York Austin. Burns, Appel) & Smith. New York .. Price Waterhouse & Co. New York e Annual M*ttmg pf Ruberoid stockholdara will ba held m lha Company s o^'Ctt Sautn Bov^d 3ro N ^ on Ao- 'W- a t'oc-Coe-T a>e coro iiif nviisd la attand A notice ol th# meeting a prosy statamsnt and a p'oay soWciiec oy the managamem wit oe ma.'ea to esc" ncoe* :ac ra noc> Th* data Ha'am *r* published solely lor th# information of lha Company j rcno'0#' No Purchase pf any security issued by th# Company ,n tn, oooklet -* mist 'c< me purpose o< 'fluC *g the in connection with l* a*aminat,cr of th* financial statement o' Th* Ruberod Co ai Dacemoa* 31 `9S3 P> c* Watemouse 1 Co has a,*o a*ao * suriii-ca' Company anawhara n this annual report and has found such information to nave oa*'' comp.led proper ? from in* <co'0 *rp rcoo-ts aa<<aoia to in* 0 1 -020t8-' C` GAF 12319