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FILE NAME: Fibreboard (FIB) DATE: 1978 DOC#: FIB022 DOCUMENT DESCRIPTION: Moody's Industrial M anual Entry - Fibreboard 1978 VOL. 1 A-I MOODY'S. INDUSTRIAL MANUAL F iBR SARb COVERING NEW YORK, AMERICAN & REGIONAL STOCK EXCHANGES & INTERNATIONAL COMPANIES william o. dwyer, Publisher HOWARD G. KIEDAISCH, Ass'tPublisher L. JOSEPH ROGERS, Gen. Manager ROBERT P. HANSON, Editor-in-Chief Editorial Board ROBERT W. BURKE KENNETH W. CLIFFORD BRIAN T. COFFEY RICHARD B. DAVIS ALFRED G. ELLINGHAM HAROLD H. GOLDBERG JOHN I. INCORVAIA JOSEPH B. LEIGH JOSEPH J. NESTO FRANK R. PLATAROTE MICHAEL A. RABBIA HANS VAN DEN HOUTEN MOODY'S INVESTORS SERVICE, INC. 99 CHURCH STREET, NEW YORK, NY 10007 (212) 553-0300 SEE FOLLOWING PAGE FOR COMPLETE LIST OF OFFICES Copyright 1978 by MOODY'S INVESTORS SERVICE, INC. New York All rights reserved. 648 MOODY'S INDUSTRIAL MANUAL FIBREBOARD CORPORATION (M erg ed Into Louisiana Pacific C orp. In June, 1078) CAPITAL STRUCTURE Amount Tim es Charges Earned Interest Call Price Range LONG TERM DEBT ..... Issu e Rating O utstanding 1977 1976 D ates Price 1977 0 1976 1. 6.65% n otes, 1987........... $23,764,000 2.745.000 0 .. . B:: 2. S ecured first SVas, 1985......... 3. C onv. su b o rd . d eb . 4*/4S, 1993 B 3.553.000 11.619.000 A & 015 0102.50 561/2- 52 1.28 0.81 A & 015 0105.74 83 - 72 51`A 62`A ..... 4. C onv. sub o rd . deb. 6V4S, 1998 B- 5-. L" ong term 'lease-- i!nnda. Tre"v ................................... 4.300.000 0 0 .... 6. L ong te rm lease-- p o llu tio n c o n tr.................... 13.300.000 7. O th e r n o t e s .............................................................. Par 16.939.000 Amount E arned per Sh. Divs per Sh. Call P ru e Range 1976 CAPITAL STOCK Issue Value O u1t2s0ta.0n0d0in gshs. $5139.7776 .1.9.7.6 $129.5770 $1927.560 0 P. r.ic.e 1977 1. 2. Ser. A, $2.50 cu m . co n v . p r e f e r r e d .................. C o m m o n ............. ............................/ SI No par as"r e j r t e d ^ 'C o . 0)0.28 0)d$O.43 on*continuingope * ( I W S ^ i n g s re ctified for com parative 127/g- 7 17 V.- 8Vs p u rp o se?). F o r o th e r earn, per sh a recPo rmivpautetalytiohnelsd(. in dB. afsuelldyodnilauvteedrabgaesissh)a, rseese S ta tistic a l R eco rd , below . E jS u b ject to change; see text. S S e e text. l i a r o a r In to L o u is ia n * P acific C o rp .; I n J u n e A ls o d u r i n g 1973, a c q u i r e d P r o grrress s iv e m illi o n s q u a r e f e e t a n d p r o d u c e d 2,8 8 5 m illion W 8 .T . an d L o u isian a Pacific C orp. reach ed MxviaarrkKiinngg Prrroouduuccum ^wo..^, \*A,&u^ Pi n*sn*.Uw*n.g0 I n k C o. s q u a re feet in 1977. ... . . . All of th e fo re g o in g facilitie s a r e o w n ed in a g r e e m e n t a llo w in g t h e $ 60,000,000 r n e r g e r o f and M M F W ood P ro d u cts Co. an d a folding c arto n p la n t a t N e w a rk , N .Y . fee. (5). w ith a u n it of L o u isia n a P acific C orp. T h e m erg er w as effective im m ediately^ A In 1974, a cq u ire d a ss e ts of T & H M e ta ls C o., Forest Product: , c o n d itio n 0! th e ag reem en t w ith th e FT V? S a u n d e rs L u m b e r C o., a n d W h ittie r C o n ta in er Co. an d acq u ired th e net assets an d business C o .'s p r in c ip a l f o r e s t p r o d u c t s a r e lu m b e r a n d p ly w o o d . In 1975, C o. ra n k e d tw enty-first th a t L o u isia n a P acific C o rp . d iv e st itself o f all I n t e r e s t in C o .'s R o c k l in , C a l., m e d iu m d e n s i t y of C ircle D esig n 8t M fg. C o., G len R o ck , N .J. in th e U .S. in v o lu m e of lu m b e r p ro d u c e d . fiberboard p lan t w ithin tw o y ears an d th a t it fo r 45,000 sh a re s of c o m m o n sto ck . In F eb . 1976 so ld M erlin O re g o n P ly w o o d C o. m a rk e ts its lu m b e r p rim arily to whole sale o u tle ts th ro u g h its ew n sales personnel. refrain fo r a 10-year p erio d from acquiring, w ithout F T C consent, p articleb o ard o r m edi P lan t. , . , C o m a rk e ts its p ly w o o d p ro d u c ts prim arily uxm _-_od_ce na*s ui tyy uf.i1ub. ce.rubuo arud p r odu rx.c rcltmi o--nn*I,n--faatc ili M ;ta-i-re-.-s.-, In J u n e 1976 so ld w o o d -p an el d o o r m a n u factu rin g p lan t in S pringfield, O re. . to w h o lesale o u tlets. N o single cu sto m er ac c o u n ts fo r m o re th a n 5 % o f to ta l s a le s o n ei A c c o r d in g t o t h e a g r e e m e n t r e a c h e d l a s t M a r ., I n O c t. 1976, s o ld m a c h i n e r y & e q u i p m e n t t h e r o f t h e s e p r o d u c t s . .................. CXoJ.'8s a s s e t s IiUn cUluUdUe. a p u l p a n d .p--a-rp,e--r--b-.o--a--r d o f G r a n t s P a s s , O r e . l u m b e r m ill ( r e m a in in g C o . h a s fiv e l u m b e r m ills , h a v in g a n a n n u a l m ill W est C o ast saw m ills, p ly w o o d p la n ts and a m edium d en sity fib erb o ard p la n t su p a sse ts so ld in M ar. 1977). S o ld in su la tio n p la n t cap acity of 280 m illion b o ard feet, located at p o rte d b y 145,000 a c re s o f trm b e rla n d s in n o rth e rn C al. A d d itional p ro p erties include in E m ery v ille, C alif. (T h is facility is b eing re placed by a new p la n t n ear G ia n d Junction, S tan d ard , Jam estow n, B urney and Truckee, C a l. a n d D illa r d , O r e . C o .'s l u m b e r m ills p r o d u c e d o v e r 2 38 m illio n b o a r d f e e t o f lu m b e r in co rru g ated shipping co ntainer p lan ts and an in d u strial in su latio n division. ^ I n A ug. 1977, C o. so ld its c a rto n p la n ts a t 1977 N e w a rk , N J . a n d V ern o n , C al. M ills a t M y rtle C reek, O re., an d Pulaski, HISTORY ' In O ct. 1977 C o. so ld its p a p e r b o a r d m ill C en terv ille a n d F a y e tte v ille , T e n n . w ere di a n d c a rto n p la n t a t S to c k to n , C al., its c a rto n v e ste d d u rin g 1977. . I n c o r p o r a t e d N o v . 20, 1917, i n D e la w a r e , a s p l a n t a t P o r t l a n d , O r e ., a n d its w a s t e - p a p e r C o .'s tw o p l y w o o d p l a n t s , h a v in g a n a n n u a l T h e P araffin e C om panies, In c. a consolidation of th e follow ing com pam es: E co n o m y P a p e r collections o p eratio n s. c a p a c i t y o f 123 m illio n s q . ft., */% in c h b a s is are C o ., N o r t h e r n B o a r d 8c P a p e r M ills , C o a s t D isco ntin ued O p aratlo n s-- C arto n Group: lUoCciatLtCeCdl <aLtL jSmt aunud oa ri ud a" n**d'- B u r n e y , C -a-l-. T h,ese^ p l. a n t s p r o d, u c_e. _di o___v__e__r ,13314 _m i11l1lCi o n c snqu un a-r*e f ofeo et t W a ste P ro d u c ts C o., C re sc e n t B o x b o ard C o., I n N o v . 1976, C o . 's B o a r d o f D i r e c t o r s V"/ m 8 illnUc.hil bUaasailss oOfi piJli,yr wn uowo du isanx 1*9' 77.* T h e C. lover* S o u t h e r n B o a r d & P a p e r M ilLs, R W . P n d h a m a d o p t e d a f o r m a l p l a n o f d i s p o s a l e f f e c tiv e dj a_ll e.. CC ia- lUifi , pM lly. iwt i i rot /owdl pn llaa nn tt s h u t d o w n in D ec. C o., C alifo rn ia P a p e r & B o a rd M ills a n d th e Paraffine P a in t C o. D ec. 31, 1976, to d isco n tin u e o p e ra tio n s of its C arto n G ro u p an d related businesses an d cer 1i y97/ o6 a inmd s ou lidu imn 1\.-9r77>.2C^'-o'..- s o ld its M e--r--lin , O reg o>nn p il y w o uo ud p iliatn ti in F* e b r u a r ] / 1976. ... O n N o v . l , 1950, n a m e c h a n g e d t o P a b c o t a i n r e l a t i v e l y m i n o r a s s e t s in its F o r e s t P r o d A ll Jo_fr xt h1__e n ifaonr eteg oairnwgi pml a11n t s a n d m ills w ere P ro d u c ts In c. a n d to F ib re b o a rd P a p e r P r o d u c ts G ro u p a n d In d u s tria l P ro d u c ts G ro u p . a cq u ire d since 1965 a n a a re o w ned in fee, ex u c t s C o r p . M a y 1, 1956. P r e s e n t n a m e a d o p t e d T h i s a c t io n w a s t a k e n in f u r t h e r a n c e o f a n c e p t t h e T r u c k e e m ill w h ic h is h e ld u n d e r a J u n e 29. 1966. . . . o v e ra ll p ro g ra m to d isp o se of o r d isco n tin u e lease w ith a tw o -y e a r rem ain in g te rm an d an In N o v ., 1927, p ro p e rtie s u sed m th e m a n u certain m a rg in a lly p ro fita b le o p e ra tio n s, in o p tio n to ex ten d fo r a n ad d itio n al ten y ears. factu re of p a p erb o ard w ere m erged w ith sim i cluding facilities co n stitu tin g p a rts of Co. s la r p ro p e rties o w n ed b y N a tio n a l P a p e r P ro d co n tin u in g b u sin ess, in a n effo rt to stream lin e Fibre Pine Products: . In M a y 1975, C o. com m enced o p e ra u o n ol a u cts Co. of C alifo rn ia in to a 50% o w n ed affili ate. F ib reb o ard P ro d u cts Inc. (rem aining to tal o perations an d enable Co. to m ake m ore p ro d u ctiv e use of its available resources. T h e $13 m illion p la n t fo r m a n u fa c tu re of m edium s to c k - a c q u ir e d fr o m C ro w n Z e lle rb a c h C o rp . s e le c tio n o f a s s e ts fo r d iv e s tm e n t w a s b a s e d d e n s ity fib e rb o a rd , a n e w p r o d u c t fo r Co., in J a n ., 1956 fo r *37,800,000 a n d c o m p a n y p rim a rily u p o n th e ir re la tiv e c o n trib u tio n to chief ra w m a te ria ls fo r w hich a re w o o d sh av m erg ed D ec. 31, 1956). . _ _ p ro fit a n d c ash flow of C o. N e t cash p ro ceed s in g s, s a w d u s t, o th e r w o o d w a s te s a n d reBins. P l a n t h a s a n a n n u a l c a p a c i t y o f a p p r o x . 60 D u rin g 1927 so ld to th e C alifo rn ia In k C o. m ach in ery u sed in th e m a n u fa c tu re of p rin t from th e sale of assets w as used fo r deb t re duction an d for su p p o rt an d im provem ent ot m illion sq u are feet (% " oasis) an d 1977 p ro ing ink in ex ch an g e fo r c erta in sto ck of th a t th e c o n tin u in g b u sin ess. d u c tio n o f 51 m illio n s q u a r e fe e t. F ib re P in e p ro d u c ts a re u sed p rim arily in fu rn itu re in c o m p a n y . I n S ep t., 1928, p u rc h a se d e n u re c a p i ta l s to c k o f P l a n t R u b b e r 8r A s b e s to s SUBSIDIARIES . . . . d u stry w here th ey replace m ore expensive or W orks, w hich w as dissolved an d liq u id ated less effective lu m b er an d w ood p ro d u cts. O th C o m p a n y o w ns 100% of v o tin g secu rities in er p o te n tia l u ses fo r p ro d u c t include kitchen J u n e 30, 1947. In 1929 a c q u ire d e n u re sto c k of T rim o n t L a n d C o. a n d electronic cabinets, m ouldings, door C o tt-a-lap Co. _. , O n A p r . 1. 1946, c o m p a n y m e r g e d S c h u N ot*: O n J a n . 24, 1975 D ire c to rs a d o p te d a ja m b s , th in p a n e lin g a n d stiles a n d ra ils for m a c h e r W a l l B o a r d C o r p ., a n a f f il ia te , is s u in g nml ao nn towf doiuslpdo bs ael suonldd ebrywMh iacrh. t3h1e, a1s9s7e6t.sCoof. Thrais hinogllopwo ocr opr er oddouocrts .q Su at al irtty u, ps upbrsotba lnetmi asl l, yinlcolwu de r 15 000 s h a r e s o f c o m m o n s to c k in e x c h a n g e fo r S c h u m a c h er's 45.000 sh a re s. . since rev ised estim ated d a te of disposal to o p e ra tin g efficiency th a n ex p ected a n d lower O n A p r . 1, 1951, c o m p a n y a c q u i r e d e n t i r e M a r . 3 1 , 1979. th a n ex p ected prices fo r p ro d u ct, cau sed plant sto ck o f Pacific R oofing C o. C o m p an y d is to in cu r losses d u rin g each m onth of its o p era so lv ed J u n e 30, 1953. . In 1957, c o m p a n y so ld flo o r c o v erin g p la n t BUSINESS 4 PRODUCTS . T h e p r i n c i p a l b u s i n e s s o f t h e C o m p a n y xs tio n in 1975. C o m p a n y closed p la n t during D ec. 1975 a n d J a n . 1976 to m o d ify p ro d u ctio n a t M e tu c h e n . N J . . a n d P h ila d e lp h ia a n d B a lu - th e m a n u f a c tu r e a n d s a le o f p a p e r b o a r d , fo r e q u ip m e n t. P la n t re c o m m e n c e d o p e ra tio n s in m ore carto n an d co n tain er .plants of F ibre- est an d in d u strial p ro d u cts. F eb . 1976, a n d q u a lity a n d p ro d u c tio n p ro b b o ard P ro d u cts (E aste rn D ivision) Inc. Paperboard Product: lem s w ere c o rre c te d . H o w ev e r, fu rth e r diffi . culties w ere en co u n tered m fully developing I n 1961 c o m p a n y d is c o n tin u e d flo o r c o v e r C o. m a n u fa c tu re s p a p e r b o a r d a t its tw o p a th e a v a ila b le m a rk e t fo r m e d iu m d e n s ity n- ing o p e ra tio n s a t E m ery v ille, C al. I n 1965 c o m p a n y a c q u ire d L o re n z L u m b e r C o., B u rn e y . C al.; C lo v e rd a le P ly w o o d C o., p e rb o a rd m ills a n d co n v erts p a p e rb o a rd in to v a rio u s p ack ag in g p ro d u c ts a t its six c o n ta in er plan ts. A pproxim ately th ree-q u arters of b erb o ard an d p la n t did n o t o p erate at a prplit fo r y e a r 1976 o r 1977 a lth o u g h th e o p e ra tio n b e ca m e p ro fita b le fo r th e first tim e in the C lo v erd ale, C al.; c e rta in a sse ts o f C lear F ir S ales C o., a n a tio n a l d is trib u tio n of p ly w o o d C os. p ro d u c tio n of p a p e rb o a rd is u sed to s u p fo u rth q u a rte r of 1977. and lum ber p ro d u cts and 50% in terest in p l y its o w n c o n t a i n e r p l a n t s . C o .'s p a c k a g in g p ro d u c ts include co rru g a te d sh ip p in g c o n tain Industrial P ro d u ct*: P ickering L u m b er C orp., S ta n d a rd , C al. In 1967 c o m p a n y a c q u ire d m ill facilities of ers p ack ag in g for fresh pro d u ce, an d folding Co. m a n u fa c tu re s a t M esa, Col. a n d Lincoln P a rish , L a., its P ab co line of asbestos-free, D ouglas L u m b e r C o., T ru c k e e , C alif, o n a c a rto n s for su ch p ro d u c ts as ice cream , fro zen foods, dried fruits, cereals, so ap , d eterg en ts h ig h te m p e ra tu re calcium silicate insulation long-term lease arran g em en t. In D ec. 1967 c o m p a n y so ld th re e o f its fo u r a n d m an y o th ers. Co. sells its p a p erb o ard an d p ro d u cts, w hich a re sold for use in pow er gen eratin g , chem ical a n d p etro leu m facilities, lh e gyp su m p lan ts and q u arries. ps aalceks a gf oi nr cge .p rNo od uscitnsgpler i mc uasrtiol ym tehr r oa uc cgohuintst so wf onr L i n c o ln P a r i s h p l a n t c o m m e n c e d o p e r a tio n s O n O ct. 23, 1968, c o m p a n y p u rc h a se d 1 823,056 of its c o m m o n s h a re s fro m T e n n e c o m ore th a n 5% of to tal sales of th is class of in la te 1973 a n a w as fin an ced b y industrial rev en u e b o n d s. A new h ig h -tem p e ra tu re in In c fo r $41,018,760 c ash ($22.50 p e r s h a re ) p lu s w a rra n ts (fo r w hich, see below ). P r^ U's t m a j o r p a p e r b o a r d f a c ility is its S a n d u s tria l in s u la tio n p la n t in M e sa C o u n ty , Loi. b e g a n o p e ra tio n s in 1977. T h e tw o p la n ts have I n A p r., 1969, a c q u ire d G re e n V a lle y L u m J o a q u in p u lp a n d p a p e r b o a r d m ill, lo c a te d a c o m b in e d a n n u a l c a p a c ity of 1,900,000 cubic b er, In c . b y issu a n c e o f 88,930 c o m .* h s -C o . n e a r A n tio ch , C al., w h ich m a n u fa c tu re s its p a p e rb o a rd p rincipally from virgin fibers. The feet, calcu lated by p ro jectin g each p la n t s av a lso issu e d 150,000 co m . sh s. a n d 120,000 se ries A $2.50 cu m . conv. p fd. shs. fo r rem ain in g San Jo aquin m ill h a s tw o p a p erb o ard m a erag e p ro d u c t m ix o v e r th re e shifts, seven d a y s p e r w eek , a n d p ro d u c e d 1 2,463,000 cubic 50,000 o u ts tg . com . Shs. o f P ic k e n n g L u m b e r chines, hav in g an ag g reg ate a n n u al cap acity of 270,000 to n s a n d 1977 p ro d u c tio n of 245,000 fe e t in 1977. A th ird p la n t dt E m e ry v ille , t-ol. ^ I ? A pr., 1969 acq u ire d S eq u o ia P in e M ills, to n s, w hich p ro d u ce co rru g atin g m ed iu m an d w a s so ld in O ct. 1976. . . . C o .'s b a c k l o g o f o r d e r s f o r its P a b c o in s u la In c. fo r 61,750 co m m o n sh ares. k r a f t lin e r b o a r d , r e s p e c tiv e ly , t y p e s o f p a p e r t i o n p r o d u c t s w a s 3 0 6 ,0 0 0 c u b ic fe e t a t e n d of O n M a y 22, 1969 a c q u ire d B a te P ly w o o d b o a rd u se d in th e m a n u fa c tu re o f c o rru g a te d 1977 c o m p a re d to 316,000 cubic fe e t a t th e end C o , In c., M erlin F o re s t P ro d u c ts C o., In c. an d S ri.& W . L u m b er C o. all in O regon. . . I n A p r. 1971 a c q u ire d R o u n d P r a ir ie L u m b e r C o., D illard , O re. fo r 30,000 co m . shs. In J u n e 1971 a c q u ire d C le a r F ir P ro d u c ts C o., O reg., L td ., S p rin g field , O re. In M a y 1972 so ld rem ain in g of g y p su m P l Imn t JTuunnee diu__sxt_nte__s oif 1i v97' f2 Tam acq pa, u ire d iFrilaa ., aaa ps sipe et smmo aaf nnCuuoffraa--Bcc-&t--tuunrr e--eIrrn.. In O ct. 1973, acq u ire d W h itw o rth L u m b er C o.. P u la sk i, T e n n . lo r cash. contam ers.^iachine, w hich p ro d u ced bleached jcraft w a s s h u t d o w n in 1977 in c o n ju n c tio n w ith sale of th e carto n o p eratio n s. C o .'s o t h e r p a p e r b o a r d m ill, lo c a t e d in S u m ner, W ash., m a n u fa c tu re p a p e rb o a rd fro m re cL'yyCc lCeUd lfiiUb evir sII.. R e c y c le d rp 1a"!p*e r*b o a r d i*n u s e d _p__r_ifm___ a__ r i:il.y. Ii_n_ mina m n iuiffaa nc ftiui rme no tf ffno 1lH d iitnigCTC cR a T r tloOnIIsS., T1hne CL-ou.'sa sbiixa ctuounMt ami nive*r p**l*a*n.t*s~ a--r e- l-o,c avt;e d a t A ntioch. S o u th G ate, S an Jo se, an d B uena P a rk , C al.; S u m n e r, W ash .; a n d P h o en ix , A n x . T h e s e p la n ts h a v e a n a n n u a l c a p a c ity of 3,500 * Co? also m a n u fa c tu re s m etal jack etin g used in co n ju n ctio n w ith its in su latio n products and w ith insulation p ro d u cts of o th er m anu factu rers a t its Palestine, T ex as plant, p u r c h ase d in 1974. T h e sales of th is p la n t a re not a significant facto r in to ta l sales. Co. h as three ink plants w ith an annual ca p a c ity of 3.6 m illio n p o u n d s a n d fo u r p rin tin g p la te plan ts, all on th e W est C o a s t.C o .a lso fab ricates p ack ag in g m ach in ery a t G len Rock, N .J. and facilities sales. Th th o se reli The O and Tam N a t Sal C o n tain er Forest prt Industrial T o ta PRINCII C om p e d a s fol Paper och), Ca Packa Buena 1 A riz.; S\ Indus . C ounty, Tex. INCOM st th o i Sc Fi Inc. Dep Dei Net Est I LoBA O G N a p R A MOODY'S INDUSTRIAL MANUAL 649 N .J. a n d H a y w a rd , C al. T h e sales b y th ese facilities a re n o t a m a te ria l fac to r of to ta l sales. T h e cos. th re e in k p la n ts, a re am o n g those relativ ely m in o r assets to b e divested. T h e C os. C o rB an facilities a t B enicia, C al. a n d T a m p a , F la . w e re d is p o se d in 1977. Net Sales By Products (in th o u s a n d s ): 1977 C o n ta in er p ro d ............ $83,435 F o re s t p ro d ................... 111,578 In d u stria l p ro d ............ 32,946 1976 $74,652 101,493 28,814 T o tal $227,959 $204,959 PRINCIPAL PLANTS & PROPERTIES C o m pany ow ns p lan ts and p ro p erties locat ed a s follow s: P a p e rb o a rd M ills-- S an J o a q u in (B a st A n ti o ch), C al.; S u m n er, W ash . ^ P ack ag in g -- C o n tain ers-- A ntioch, C al.; B u en a P a rk , C al.; S o u th G ate, C al.; P h o en ix , A riz.; S u m n e r, W ash .; S a n J o se , C al. In d u strial In su latio n an d Jack etin g -- M esa C o u n ty , C olo. L incoln P a rish , L a.; P alestin e, Tex. In k -- A ntioch a n d L o s A ngeles; P o rtlan d , O re. M edium D en sity F ib e rb o a rd -- R ocklin, C al if. L u m b e r a n d p ly w o o d -- D illard , O re.; T ruckee, B urney, Jam estow n an d S tandard, C al. T im b e r R eserv es-- C alif. P ack ag in g D ie B o ard s-- S an F ran ., C al. P rin tin g P la te s-- E m ery v ille, L o s A ngeles, a n d S o u th G ate, C al.; S e a ttle , W ash . T ru ck in g -- A ntioch, S o u th G ate, a n d S ta n d a rd C al.; S u m n e r, W ash . R esearch & D ev elo p m en t-- H a y w a rd , C al. P ack ag in g M ach in ery -- G len R ock, N .J.; a n d H a y w a rd , C al. C o m p a n y h a s sales offices lo cated in A riz., C a l., C o l., G a ., 111., N .J ., O r e ., L a ., O h io , T e x ., and W ash. MANAGEMENT O ffic e rs D .E . O gle, P res. & C hief E xec. O ff. R .G . A n d erso n , S en io r V ice-P res.-- O p ers. G .J. L o ren z, G ro u p V ice-P res. M elvin S h u lm an , V ice-Pres. P .T . K au fm an n , G ro u p V ice-Pres. G . F . R yles, G ro u p V ice-Pres. J.S . M itchell, V ice-P res. & Sec. R .S . V erh ey , V ice-P res.-- F in . & T rea s. H . J. H erkenhoff, C ontroller V .H . T alc o tt, A sst. Sec. D ire c to rs H .C . C ornuelle S. L eiken T .F . Cass D . E . O gle J.A . M oore, Jr. B rooks W alker, Jr. E .G . Solom on E. B. M cConkey S.F. H inchliffe, Jr. S.B. R o m a n Purchasing A gent: J.G . G o n o t. Qen. C ounsel: B ro b eck , P h leg er & H a rriso n . A uditors: P rice W a terh o u se & Co. Annual Meeting: 3 rd W e d n e s d a y in A p ril. No. of Stockholders: D ec. 31, 1977 P re fe rre d , 1; c o m m o n , 4,6 8 6 ; w a r r a n t s , 766. No. o f Em ployes: D e c. 31, 1977, 3,391. General Office: 55 F ra n c is c o S t., S a n F r a n c is c o , C A 94133. Tel.: (415)362-6900. INCOME ACCOUNTS C O M P A R A T IV E C O N S O L ID A T E D IN C O M E A C C O U N T S . Y E A R S E N D E D D E C . 31. (T a k e n fro m re p o rts filed w ith S ecu rities a n d E x ch an g e C om m ission) N e t s a l e s ........................................................................................ O ther re v e n u es (n e t) ................................................................ C o st of g o o d s s o l d .................................................................. Selling, gen eral a n d a d m in , e x p e n s e s ............................... In te re s t a n d d e b t e x p e n s e ....................................................... C osts of new p l a n t ...................................................................... N o n re c u rrin g g ains, ( n e t ) ...................................................... F ederal a n d s ta te incom e ta x e s ( b e n e f it) ........................... (in th o u san d s) 1977 01976 $227,959 $204,959 734 524 204,400 184,092 16,016 16,826 6,871 6,957 317 524 f 200 1,576 01975 $166,099 2,224 153,893 16,001 7,010 3,266 (5,570) 01974 $181,853 1,857 152,621 14,277 6,126 3,148 1973 *181,077 1,341 144,518 12,257 4,051 8,907 1972 $141,895 1,024 119,060 10,119 4,013 3,592 Incom e (lo ss) fro m c o n tin u in g o p e r..................................... D iscontinued operations: t In c . (jo ss) fro m o p e ra tio n s of C a rto n G r o u p ........... P rovision for est. loss on disposal of C arton G roup L o s s fro m o p e ra tio n s of T rim o n t L a n d C o ................ Provision for loss on disposal of T rim ont L and Co. ' 1,230 3,721 (1,115) (1.641) (31.300) (6,277) 263 7,538 2,992 (2,035) (7.200) 12,685 557 (1,558) 6,135 873 ` ( 868) T otal discontinued operations . . . . . . Incom e (loss) before extraordinary gains E x tr a o r d in a r y g a i n s ................................. . 3,721 4,951 1,500 (32,941) (34,056) ........... 263 (6.014) ........... (6,243) 1,295 5,979 ( 1,001) 11,684 3.316 5 6,140 1,669 N e t In co m e ( l o s e ) ............... Retained earnings beg. year Accum. earn, of pooled Co. . Cash dividend: P referre d s t o c k .................. C om m on s t o c k .................... $6,451 47,105 300 ($34,056) 81,461 300 ($6.014) 88,757 300 982 $7,274 84,463 175 300 2,855 $15,000 72.272 300 2,509 $7,809 27,104 300 2,341 R e ta in e d e arn in g s e n d of y r....................................................... 53,256 47,105 81,461 88,75/ 84,463 SUPPLEM ENTARY P. & L. DATA M ain ten a n c e & r e p a ir s .................................................................... $12,120 ^ $11,986 $13.077 $13,566 $11,505 D eprec.. dep!,, etc; ............................................................................. 10.180 10,426 12,560 11,720 11,190 T a x e s o th e r th a n in c......................................................................... R e n t s ..................................................................................................... 10,756 3,150 10,176 3,280 11,635 3,960 9 '? c n 3./50 i 'i TM 3,370 Includes related portions of item s shown "Supplem entary P. & L. D ata" below statem ent. L e s s incom e ta x re d u ctio n s: 1974, $2,270; 1973, $1,438; 1972, $910 . , , .. 1977: Benefit from utilization of loss carryfow ard for financial reporting purposes and benefit from realization of loss carry-back lor tax purposes. 1974: G ain o n T a h o e la n d sale, less incom e ta x e s of $3,279. 1973: G ain re su ltin g from ex ch an g e of d e b en tu re s. .................... ,,, . . . .A _ 1972: G ain resu ltin g from sales of su rp lu s, n o n -o p e ra tin g p ro p e rties, a n d loss incident to the a b an d o n m e n t of certa in obsolete p a p e rb o a rd an d carto n I^ess incom e ta x e s (benefit): 1976, no n e; 1975 $(217); 1974, $3,184; 1973, $456; 1972, $608. Reclassified for com parative purposes. L e ss e stim a te d incom e tax benefit: 1977, $800; 1976, $3,900; 1974, $3,821. Statem ent o f Changes In F inancial tho u san d s): Sources of Funds: 1977 From continuing operations: Inc. (loss) fr. cont. o p e r........................... $1,230 Deprec., depl. & a m o r t . .................... 10,180 N et gains fr. sale of prop., plant & equip., & in v e sts.. Est. loss on certain p it. facil.................... (1,125) 677 Position (in 01976 *(1,115) 10,426 (2,358) (4,202) 2,000 Adjust, to (prov. for) est. loss on disp. of C arto n G r.......... D ep rec. & a m o rt......... D eferred inc. ta x e s . . . Deer, in assets applic. to discont. o p e rs ........................ Deer, in invest, in & adv. to Trim ont L a n d C o.................. Pension oblig. related to discont. opers. . T o ta l .................... 10,962 From discontinued operations: Loss from opers. of C a rto n G r............... ........... 4,751 (1,641) T o ta l ................... T ax ben. result, from realiz. of a port. of a net oper. lo ss. 3,721 6,965 2,282 5,664 18,632 1,500 (31,300) 2,673 (3,900) Proc. from disp. of prop., plant & equip., & invests. . Incr. in lg.-tm. debt .. Deer, (incr.) in other noncurr. assets... 16,198 1,449 T o ta l .................... Uses of Funds: Addit. to prop., plant & e q u ip .................... C ash d iv id e n d s ........... Reduct, in lg.-tm. (16,521) T o ta l .................... N et incr. in w ork. c a p ............................ 3,970 1,298 (2,123) 34,239 11,331 300 18,052 29,683 $4,556 72.272 $10,574 9.056 8.694 2,670 facilities. 9,685 1,065 95 (925) 12,076 300 10,441 22,817 d$23,742 BALANCE SHEETS C O M PA R A T IV E C O N S O L ID A T E D B A LA N C E (T a k e n fro m re p o rts filed w ith S ecu rities a n d (in th o u san d s) ASSETS: C a s h ...................................................................................................................................................................... C ertificates of d ep o sit, r e s t r i c t e d ................................................................................................................ N o te s & a cc ts re c e iv a b le ................................................................................................................................ I n v e n t o r i e s .............................................................................................................................................. P rep a id e x p e n s e s .............................................................................................................................................. R efu n d ab le inc. t a x e s ........... ....................................................................................................................... A ssets applic. to disc, o p e r............................................................................................................................. S H E E T , A S O F D E C . 31 E x change C om m ission) 1977 *3,150 1,708 22,033 40,377 6,969 1976 $2,711 16,145 39,383 7,243 8,500 1975 $2,765 16,948 34,168 12,956 6,857 23,021 T o ta l c u rre n t ....................................................................................................................................... In v e st, in u n co n s, s u b s ................................................................................................................................... M isc. sec u rities & long te rm receiv............................................................................................................ $74,237 3,274 2,854 $73,982 5,556 2,519 $96.715 8,762 2,194 650 MOODY'S INDUSTRIAL MANUAL , BALANCE SHEETS (Cont'd): Property, plant & equipm ent. . . . Leas: D epr. depl. & am ort, res. .. N e t p ro p e rty a c c o u n t ......... Refundable fed. incom e taxes Def. chgs. & intangible assets Assets appli. to disc. oper. .. T o t a l ...................................... LIA BILITIES: Long term debt due currently N o te s p a y a b le to b a n k s ......... A ccounts p a y a b le ...................... A ccrued interest, wages, etc. . D ividend p a y . o n p rf d .............. T o ta l c u rre n t lia b ilitie s ..................... L ong te rm d e b t ....................: .......................... Pensions oblig. related to discont. opera. D eferre d F e d e ra l incom e t a x e s ............. Series A $2.50 cu m . p fd .................................. C o m m o n s t o c k ............................................ O th e r c a p i ta l..................................................... E a rn e d s u r p lu s ................................................ T otal stockholders* equity L e ss: T r e a s u ry s h a r e s ........... N et stockholders equity . . . . T o t a l ...................................................................... N a t cu rra n t a a a a t a ............................................... PR O P E R T Y ACCT.--A N A LY SIS A dditions a t c o st ................................................ R etire m en t o r s a l e s ............................................ O th e r r e d u c t i o n ................................................... O th e r a d d itio n s ....................................................... D EPREC. D E PL . ETC. R ES.--ANALYSIS A ddition s ch g d . to in c o m e ............................... R etire , re n e w als chgd. t o re s ............................ O th e r a d d itio n s ......................................................... Reclassified for com parative purposes. A t low er of cost o r m a rk e t, 1977, com prised: F in ish e d p ro d u c ts, $9,385,000; in p ro c e ss $7,746,000; Depreciation, Depletion and Am ortization: P r o v ision fo r d ep reciatio n is m ad e on a stra ig h t line b asis a t ra te s b ased on estim ated useful ra w m a te ria ls, $23,246,000. 1977: Book Value B u ild in g ........................ $28,343,000 M ach. & e q u ip ............. 148,959,000 C o n s tr u c tio n ............... 1,428,000 Tim ber hold, etc. L e ssd e p L ................ 10,564,000 L a n d ............................... 2,608,000 lives of v a rio u s classes of p ro p e rty . A nnual R eserves $11,185,000 74,519.000 ........... depreciation rates used for continuing o p e ra tio n s w ere as follow s: B uildings a n d lan d im p r o v e m e n t s , 2 Va t o 5 % ; l e a s e h o ld im p r o v e m en ts, life of lease; m a c h in ery a n d e q u ip m e n t 5 t o 12l/ a % ; f u r n i t u r e a n d f ix t u r e s , 1 0 % ; a u t o ........... m o t i v e e q u i p m e n t , 121/ a % t o 3 3 1/a % - . # ........ P r o v i s i o n f o r d e p l e t i o n o f t i m b e r h o ld in g s is T o t a l .................... $191,902,000 $85,704,000 R elated to increased depredation claimed for tax purposes, etc. N o p a r sh ares: 1977-1975, 3,275,000. S h a re s a t c o st 1977-75, 1,234. m ad e on th e u n it of p ro d u ctio n basis. ^ D eferred lo n g -term d e b t ex p en se is a m o r tized over th e period of th e related borrow ing on th e basis of th e an n u al balance o u tsta n d ing. 1977 191,902 85.704 1976 179,176 74,374 [31975 183,534 74,588 106,198 ' 1,800 1,276 104,802 1,288 10,732 108,946 1,640 29,603 $189,639 $198,879 $247,860 $8,125 13,000 17,859 8,437 75 $7,294 14,500 19,659 10,269 75 $1.671 20,000 19,800 9,242 75 $47,496 68,095 5.664 8,395 120 51,968 7,787 53,256 $51,797 84,849 8,395 120 31,968 7,787 47,105 $50,788 94,225 14,653 120 31,968 7,787 81,461 93,131 33,142 59,989 86,980 33,142 53,838 121,336 33,142 88,194 SI 89.639 $26,741 SI 98,879 1 S22.185 $247,860 S45.927 $11,331 9,343 10,738 $12,076 13,998 2,436 $20,765 2,796 7,934 19,931 6,498 7,897 $10,058 10,272 $9,026 2,409 M aintenance, rep airs an d renew als of m inor item s a re ch arg ed to incom e. M ajo r renew als an d betterm en ts are charged to th e ap p ro p ri ate p ro p erty accounts. T h e asset and accum u lated d ep reciatio n acco u n ts a re relieved w hen p ro p erties are retired o r otherw ise disposed of, an d th e n et gain o r loss is cred ited or c h a r g e d t o c u r r e n t y e a r 's o p e r a t i o n s . ' General Note s T h e financial statem en ts include prim arily th e a cc o u n ts of F ib re b o a rd C o rp .'s co n tin u in g operatio n s. Financial d ata for discontinued o p e ra tio n s a re so in d icated . In v e stm e n t in T rim o n t L an d C o. a w holly-ow ned unconsoli d a te d su b sid ia ry , is in clu d ed o n th e e q u ity m eth o d of accounting. FINANCIAL A OPERATING DATA Statistical R ecord, Fiscal Y ears E a rn e d p e r sh a re --$2.50 p r e f e r r e d ........... Earned per share--common: On year end shares: In c o m e fro m co n t. o p e r................................... In c o m e fro m d isco n t. o p e r............................. E x tra o rd in a ry i te m s ........................................ N e t in c o m e ......................................................... On average shares: In co m e fro m co n 't. o p e r.................................. Incom e fro m d isco n t. o p e r............................. E x tra o rd in a ry ite m s ........................................ N e t in c o m e ......................................................... On avg. shs. fully diluted: In c o m e fro m co n 't. o p e r.................................. Incom e fro m d isco n t. o p e r............................. E x tra o rd in a ry ite m s ........................................ N e t I n c o m e ......................................................... D ividends p e r s h are -- $2.50 p r e f e r r e d ----- -- c o m m o n ....................................................... P rice ra n g e --c o m m o n ................................... -- w a r r a n t s ..................................................... N et tangible assets per sh.--com ipon . . . . Tim es charges earned: B efore incom e t a x e s ................................... A fter incom e ta x e s ..................................... Price ran g e-- d eb . 4V4s, 1993 ........................ --deb. 6V4S, 1998 ......................................... N e t tang, a s s e ts p e r $1,000 l.t. d e b t ........... N e t c u rr. a ss e ts p e r $1,000 l.t, d e b t ........... N u m b e r of sh a re s--$2.50 p re fe rr e d ........... --co m . (y r.-e n d ) ........................................ Financial and O perating Ratios: C u rre n t a ss e ts -i- c u rre n t lia b ilitie s ......... % cash 8c secu rities to c u rre n t a sse ts . . . % in v e n to ry to c u rr. a s s e t s ........................ % n e t c u rre n t a ss e ts to n e t w o r t h ........... % p ro p e rty d e p re c ia te d ............................... % a n n u a l deprec. to g ro ss p r o p e r t y ----- C ap italizatio n : % long te rm d e b t ........................................ % p re fe rre d s t o c k ..................................... % c om m on sto ck a n d s u r p lu s ................ S a le s + in v e n to r y ..................................... S a le s -- re c e iv a b le s ................................... % sales to n e t p r o p e r t y ........................... % sale s to to ta l a s s e t s ............................... W % n e t incom e to to ta l a s s e t s .................. {TJ% n e t incom e to n e t w o r th ...................... A nalysis of O perations N e t s a l e s ........................................................... C o st of g o o d s s o l d .......................................... Selling, g e n eral a n d ad m . e x p e n s e s ......... B a l a n c e ............................................................. O th e r in c o m e ................................................... T o ta l i n c o m e ................................................... In te re s t p a id , e tc .............................................. T o t a l .................................................................. 1977 $0.28 S I .14 $0.46 $1.88 $0.28 $1.14 $ 1.88 $0.35 $0.93 $0.37 $1.65 $2.50 127,-7 $16.49 1.28 1.18 567,-52 83-72 $1.881 $393 120,000 3,274,642 1.56 4.24 54.39 44.58 44.66 5.30 53.16 0.09 37.84 5.65 10.35 214.98 120.21 % 100.00 89.67 7.03 3.30 0.55 3.85 3.01 0.84 31976 E)1975 dSO.43 d t 10.06 710.49 dS0.43 a t 10(06 d l 10.49 dSO.43 dSlO.06 d$ 10.49 $2.50 177.-87, 37a-17. 14.51 0.84 0.84 61-517, 94-627. $1,631 $261 120,000 3,274,642 1.43 3.66 53.23 41.21 47.52 - 5.82 61.18 0.09 38.73 5.20 12.69 195.57 103.06 % 100.00 89.82 8.21 1.97 1.03 3.00 3.55 d0.55 dS2.01 $0.08 d s i .93 dS2.01 $0.08 d s i .93 dS2.01 1 $0.08 d i i . 93 $2.50 $0.30 147.-77. 37,-17, S24.93 0.10 54-50 80-60 S I ,930 $487 120,000 3,274,642 1.90 2.86 35.33 52.07 44.73 5.18 51.65 0.07 48.28 4.86 9.80 152.46 67.01 % 100.00 94.62 9.63 d4.2S 1.34 d2.91 4.22 d7.13 31974 $10.79 S2.22 dS1.92 CiSl.84 S2.14 $2.22 dS1.92 c r i i . 84 $2.14 $1.94 dS1.48 crSl-42 S1.88 $2.50 $0.875 19-97. 7 -IV, $27.13 2.74 2.23 76-Sl 7. 104-67 7a S2.172 $542 120,000 3,274,642 1.83 3.38 42.20 45.87 49.02 5.30 45.86 0.07 54.07 4.46 11.86 172.33 74.74 3.10 7.89 % 100.00 83.93 7.85 8.22 1.02 9.24 3.37 5.87 31973 $97.37 $3.83 dS0.31 C7$1.03 S4.58 S3.85 c/JO.31 cr$ 1.03 $4.57 $3.23 d$0.24 ctSO.81 $3.80 $2.50 313.53 4 22V. 137a 97.-37, $26.29 6.33 4.13 84 587a 1187,-84 $2,372 $678 120,000 3,228,292 2.23 4.76 33.52 49.13 46.85 42.07 0.08 57.85 6.65 ' 10.50 216.88 88.67 6.21 13.92 % 100.00 79.81 6.77 13.42 0.74 14.16 2.24* 11.92 31972 $51.16 $1.82 C7$0.52 $2.34 $1.82 ciSO.52 $2.34 $1.63 crS0.42 $2.05 $2.50 m s 1.82 287,-15 147,-57, $22.56 3.42 2.53 1007a-71 $2,137 $573 120,000 3,212,594 2.63 3.31 50.32 46.74 0.08 53.18 77.82 3.36 7.80 % 100.00 83.91 7.13 8.96 0.72 9.68 2.83 6.85 MOODTS INDUSTRIAL MANUAL 651 FINANCIAL 4 OPERATING DATA ( C o n f d ) : Incom e ta x e s e tc ........................................................................ Incom e fro m co n t. o p e r........................................................... In co m e fro m d isco n t. o p e r................................................. 1977 1976 1975 1974 001973 1972 0.31 cr3.35 1.73 4.92 2.53 0.53 <70.55 <73.78 4.14 7.00 4.32 1.63 <716.07 0.16 <73.43 <70.55 2.83 <716.62 <73.62 0.71 6.45 *4.32 6 E x c lu d e s selling com m issio n s.'S B e fo re special' cred it, a fter: 1974, $2.14; 1973, $4 55; 1972. $2.34 N e t incom e before discontinued o p e ra tio n s an d e x tra o rd i n a ry g ains. In c lu d e s T rim o n t losses of: 1974, c/5.08; 1973, d0.86; 1972, d0.61. [ R e s t a t e d fo r c o m p a ra tiv e p u rp o se s. LONG TERM DEBT d iv s. C a sh p a id in lieu o f fra c tio n a l sh s. C o n - 9. F o r y e a rs 1976 to 1978, c u m u la tiv e capi- version privilege pro tected ag ain st dilution. ta l e x p e n d itu re s (e x c lu d in g a m a x im u m of $5 D IV ID E N D R E S T R IC T IO N S --See L en d in g m illion of co sts fo r the p la n t u n d e r co n stru c- $23,764,000 6 .6 5 % n o te 9 p a y a b le $3,00<L000 A g re e m e n t P ro v is io n s , b e lo w . tio n in G ra n d Ju n ctio n , C o lo rad o ) sh all be a n n u a lly fro m 1978 to 1984 a n d $2,764,000 in 1985. P ro c e e d s u s e d to re fu n d lo n g te rm d e b t of F ib re b o a rd P r o d u c ts , In c . (m e rg e d in_1956) an d of c o m p a n y , a n d to a c q u ire C ro w n Zellerb a c h 's s t o c k i n t e r e s t in F i b r e b o a r d P r o d u c t s , Inc. 2. Secured first 5% s, due IM S : O u ts ta n d in g , D ec. 31, 1977, $2,745,000. P a y a b le $504,000 a n n u a lly 1978-82 a n d $225,000 in 1983. 3. Fibreboard Corp. convertible subordinated l Ts x E D ---O n N e w Y o r k a n d P a c if ic S t o c k E x ch an g es. IS S U E D -- In 1973 in c o n n ec tio n w ith a n ex- c h a n g e o f f e r t o h o l d e r s o f d e b . 4 3/ i s , d u e 1993 a t ra te of $750 prin. am t. deb. 6% s fo r each $1,000 p rin . a m t. 4% s. 5. Long-Term Lease O bligations Relating T o In dustrial R evenue Bonds: . B o n d s c o n sist o f $500,000 o f serial b o n d s m a tu rin g $100,000 a n n u a lly 1978-1982 an d lim ited to cu m u lativ e su m of 100% of deprec., p l u s 2 0 %" o f n e t in c o m e f r o m c o n ti`n u in g o p e r a tio n s. T h is sa m e fo rm u la will b e in effect for y e a rs 1979 to 1981. In a d d itio n , C o. is also b o u n d b y p rev io u sly agreed u p o n restrictive provision th a t cash dividends m ay n o t be p aid to holders of com m o n stock u ntil Co. accum ulates earnings, de fined to include n e t losses, to be m easu red f r o m J a n . 1, 1976, in e x c e s s o f a $ 3 ,5 0 0 ,0 0 0 debenture 4% s, due 1993: $3,800,000 o f te r m b o n d s d u e S e p t. 1, 1992 a t b a se . Rating-- B A U T H .-- $30,000,000; o u ts tg ., D ec. 31, 1977, $3,553,000. N ote: See Issu ed u n d er conv. su b o rd . deb. 6% s, d u e 1998 below . D A T E D -- O c t. 15, 1968. D U E -- O c t. 15, 1993. IN T E R E S T -- A & 015 to holders registered on 15th d a y p rio r to in te re s t d a te . T R U S T E E -- B an k of C alifornia, San F ran c is in te r e s t r a te s r a n g in g fr o m 3 % % -6 yfe%. B onds p ro v id ed financing fo r co n stru ctio n of in d u stria l in su latio n p la n t in L o u isian a. T h e related lease obligation w as capitalized and fa cilities a re b eing d ep reciated o v e r th e ir esti m ated u seful lives. C o. h as an o p tio n to p u r ch ase facilities for a nom inal a m o u n t u p o n ex p ira tio n o f le a se te rm in 1992. 6. Long-Term Obligations Relating To Pollution co. A U T H E N T IC A T IN G Control Revenue Bonds: A G E N T -- B ankers In M a y , 1974, th e C alifo rn ia P o llu tio n C o n T ru s t C o., N Y C . tro l F in a n c in g A u th o rity issu e d $13,300,000 D E N O M IN A T IO N -- F u lly re g iste re d , $1,000 p o llu tio n c o n tro l re v e n u e b o n d s, w ith a n in and a u th o rized m u ltip les thereof. terest rate of 6 % % to p ro v id e for expansion of C A L L A B L E -- As a w hole o r in p a rt on a t a ir an d w a ter pollu tio n co n tro l facilities a t Fi- le a st 30 d a y s ' n o tic e to e a c h O c t. 14, incl. a s follow s: 1978 102.50 1979 ......... 102.25 1980 ........... 102.00 1981 .......... 101.75 1982 .........101.50 1983 ........... 101.25 1984 .......... 101.00 1985 ......... 100.75 1986 ........... 100.50 b r e b o a r d 's S a n J o a q u i n p a p e r b o a r d m ill. T h e bonds are subject to redem ption annually at f a c e v a lu e , b e g in n in g A p r . 1, 1985 in p r in c ip a l a m o u n ts of $545,000 a n d in c re a sin g a m o u n ts t o A p r. 1, 1999, w h e n t h e r e m a in in g $ 1 ,3 3 5 ,0 0 0 1987 .......... 100.25 1988 ......... 100.00 is to be red eem ed . A lso c a lla b le fo r sin k in g fu n d (w h ic h see ) a t 7. Other Debt: O u ts ta n d in g D ec. 31, 1977, p a r. _ $16,939,000 co m p risin g : S I N K I N G F U N D -- A n n u a lly , e a c h O c t. 15. ( a ) $ 1 1,049,000 s e c u r e d b a n k lo a n s p a y a b le 1979-92, to re tire d e b s., c ash ( o r d e b s.) e q u a l $750,000 q u a rte rly fro m 1978 to I960 a n d to $1,500,000; p lu s sim ila r o p tio n a l p a y m e n ts. $2,049,000 m 1981. In te r e s t is p a y a b le a t le n d S E C U R IT Y -- N o t secu red ; su b o rd in a te d to in g b a n k s p rim e ra te p lu s % of 1%. In lieu of all sen io r d eb t. com pensating balances, Co. p a y s a fee of 20% C O N V E R T IB L E -- In to com . a t a n y tim e (if of in te re st ra te m u ltip lied b y o u tsta n d in g called, o n 15th d a y p rio r to re d e m p tio n d a te ) lo an . . , a t $31 Vi a sh . N o a d ju s tm e n t fo r in te re s t o r (b ) $5,890,000 v a rio u s o th e r n o te s p a y a b le . divs. C ash p a id in lieu of frac tio n a l sh s. C o n version privilege p ro tected a g ain st dilution. Lending A greem ent Provisions: I n a n a g re e D IV ID E N D R E S T R IC T IO N -- S ee L en d in g m e n t co m p leted in A p r. 1977, C o m p a n y a r A g reem en t P ro v isio n s, below . ran g ed for am en d m en t of its sh o rt-term b an k IN D E N T U R E M O D IF IC A T IO N -- In d e n lines of credit, an d lo n g -term d eb t ag reem en ts t u r e m a y b e m o d if ie d , e x c e p t a s p r o v i d e d , umnodret gr aigtse 6 .b6o5n%a p irno dmeinstsuorrey na on tde s ,b 5a*n/k% t ef irrms t wL IitShTcEo Dn s--e nOt no f N6 6e2/ws %Yoofr kd e ba sn,do uPtas ct gif.ic S to c k lo a n s . I n th i s c o n n e c tio n , C o . a n d its le n d e r s E x ch an g es. . , . . h av e ag reed to th e follow ing: 1. C o m p a n y h a s g r a n t e d t o its s h o r t - t e r m P U R P O S E -- P ro c e e d s to re p u rc h a se sh s. o f a n d lo n g -te rm le n d e rs a se c u rity in te re s t in Co. com . from T enneco C orp. s u b s t a n t i a l l y a ll o f C o m p a n y 's fe e tim b e r O F F E R E D -- ($30,000,000) a t 100 (p ro ce e d s to h o ld in g s. I n a d d itio n , a n n u a l tim b e r h a rv e sts C o. 9 8 % ) o n O c t. 15, 1968 th r u L e h m a n B ro th o n s e c u re d a c re a g e , in ex ce ss o f c e rta in a llo w ers an d J. B arth & C o. an d associates. ab le a m o u n ts, w ill trig g er c erta in d e b t p re p a y 4. F ib reb o a rd C o rp . c o n v e rtib le s u bo rd inatedm e n t s . debenture 6% s due 1998: 2. N e t p ro c e e d s fro m d isp o sa l of a ss e ts d e s R ating---B ig n a te d u n d e r p ro g ra m w ill be d iv id ed b e O U T S T G .-- D ec. 31, 1977, $11,619,000. tw een F ib reb o ard an d its len d ers in acco rd D A T E D -- A u g . 15, 1973. D U E -- O c t. 15, 1998. a n c e w ith a fo rm u la fo r s u c h d is trib u tio n . I N T E R E S T -- A & O IS t o h o l d e r s r e g i s t e r e d 3. A v a ila b ility o f C o .'s s h o r t - t e r m lin e s o f A & O 1. ,, c re d it o f $25,000,000 h a s b een e x te n d e d to T R U S T E E -- B a n k of C alifornia, N .A ., S an A pril 30. 1978. In te re s t is p a y a b le a t lending banks* prim e in terest rate. E xisting com pen PA Y IN G .' T R A N S F E R & C O N V E R S IO N A G E N T -- T ru ste e , a n d B an k e rs T r u s t C o., NYC. D E N O M IN A T IO N -- F u lly registered, $50. $100, $500, $1,000 a n d in te g ra l m u ltip les of $ 1,000. . C A L L A B L E -- A s a w hole o r in p a rt on a t le a st 30 d a y s ' n o tic e , to e ac h O ct. 14, incl. a s follow s: _. 1976 .........106.41 1977 .......... 106.08 1978 ..........105.74 11997799 110055..4400 11998(100 .......... 1lu0s5..u0o6 1lv98o1i .......... 1n0n4.7u3 1982 ..1 04.39 1983 104.05 1984 103.71 1985 .........103 38 1986 103 04 1987 ...1 0 2 .7 0 satin g balance an d co m m itm en t fee a rra n g e m e n ts w ill n o t c h an g e sig n ifican tly . 4. C o m p an y m u st m a in ta in w o rking c ap ital D ec. 31, 1979. . . .. 5. C o m p a n y m u s t m a in ta in m in im u m ta n g ib le n e t w o rth , a s d efin ed , o f $52,000,000 a t D ec. 31, 1977, in creasin g g ra d u a lly to $71,000,000 a t D ec. 31, 1981. 6. C o m p a n y 's lo n g - t e r m d e b t s h a ll a t n o tim e ex ceed 135% o f tangible net w orth, and u n su b o rd in ated d eb t shall a t n o tim e exceed CAPITAL STOCK 1. F ib reb o ard C orp. s e rie s A $2.50 cum ulative c o n v ertib le p re fe rred p ar $1: A u th o riz e d , all s e ries, 1,500,000 s h a re s ; o u ts ta n d in g D ec. 31, 1977, se rie s A 120,000 sh a re s; p a r S i. H a s preference as to assets an d dividends. In liquidation entitled to S50 a sh are. E ntitled to c u m u la tiv e a n n u a l d iv id e n d s of $2.50 a n d o n e v o te p e r s h a re . C allab le b e g in n in g J a n . 20, 1974 a t $51.25 a s h a re , d e crea sin g p re m iu m s th e re a fte r. P r io r to re d e m p tio n , e a c h s h a re is co n v ertib le in to 50/42 sh ares of com m on. Is su ed in J a n ., 1969, in connection w ith acq u isi tion of P ickering L um ber C orp. T r a n s f e r A g e n t a n d R e g i s tr a r : C o m p a n y 's office, S an F ran cisco . 2. Fibreboard Corp. com m on; no pan A U T H O R IZ E D -- 10,000,000 s h a re s ; issu e d 4,508,768 s h a re s ; o u ts ta n d in g , D ec. 31, 1977, 3,274,642 s h a re s ; in tre a s u r y , 1,234,126 sh a re s; re s e rv e d fo r co n v ersio n of d e b e n tu re s, 741,764 shares; reserved for conversion of preferred, 142,857 s h a re s ; re s e rv e d fo r o p tio n s , 66,000 sh a re s; re s e rv e d fo r w a rra n ts , 729,222 sh ares; reserv ed for contribution to sav in g s plan, 100,000 sh a re s; n o p a r. N o p a r sh a re s sp lit 3 -fo r-l F eb . 2, 1948 an d 2 -fo r-l N o v . I, 1968. Dividend R ecord (C alendar y ears) (O n old no p ar shares): 1923 ........... $2.00 1924 ............$4.00 1925 . . . $5.00 1926 ............. 6.00 1927 ............. 1.50 , (O n n o p a r sh ares after 2-for-l split): 1927 .......... $2.75 1928 ....... S4.25 1929-30 {TJ$4.00 1931 .............. 3.75 1 9 3 2 -3 3 .... 0.50 1934-35.. ..2 .0 0 1936 .............. 2.75 1937 ........... 4.00 1938 ..............2.00 1939-40. .2.25 1941-43............2.00 1944-45 ----- 2.50 1946 ............. 2.25 1947 ..............3.00 . (O n no p a r sh ares after 3-for-l split): 1948-49. ...1 .2 0 1950-51 ........0.60 1952 ..............0.45 1953-55.......... 0.25 1956 ..............1.05 01957-58 . . . 1.20 0 1 9 5 9 ..........1.25 1960 .............. 1.30 1961-62. ...1 .0 0 1963 ...............1.05 1964 ...............1.20 1965-67 . ..1 .4 0 1968 ............. 1.05 . (O n n o p a r sh ares afte r 2-for-l split): 1968 .........0.17% 1969-71 ..0 .7 0 1972 ..............0.73 1973 .........0.78 1974 .........0.87% 1975 ..............0.30 1976-77 . . . N i l 0 S to c k d ividends paid: 1929, 20% ; 1930, 2%; 19S7, 4% ; 1958 a n d 1959, 2%. D ividends p ay ab le q u a rte rly M ar., Ju n e, S5 *e 5p t, aJn d: ' D e c . t o s t o c k o f r e c o r d a b o u t 16 V O T IN G R IG H T S --O ne vote per share on c o m m o n a n d series A $2.50 cu m . conv. pfd. P R E E M P T IV E R IG H T S-- N one. O F F E R E D -- (500,000 sh s.) a t $30 a sh. on A p.r. . 12, 1971 t h r u----L--e--h--m---a--n- B- r o t h e r s _I_n_c_._.a n d D e a n W itter & Co. a n d associates. P r o c e e d s to rep ay sh o rt term deb t an d to increase w orking <988 .......... 10236 1989 "1!. 1023)31990 ........... 101.69 1991 .................. 101.35 1.9..9..2.. .......... 101.01 1-9--9-3- .......... 1-0--0-.-6-8-- 1994 .........100.34 . a n d th e re a fte r a t 100. A lso c allab le o n lik e n o tic e fo r sin k in g fu n d (w h ic h s e e ) a t 100. S I N K I N G F U N D -- A n n u a lly , e a c h O c t. 15, 1984-97, c a sh (o r d e b s.) to re d e em 5 % of d ebs, o u tstg . o n O ct. 15, 1984, p lu s s im ila r o p tio n a l I e c u r it y -- IN D E N T U R E M O D IFIC A - X I O N --- S a m e a s c o n v . s u b o r d . d e b , 4 % s , d u e 1993. . C O N V E R T IB L E -- In to com . a t a n y tim e (if called, o n 15th d a y p rio r to re d e m p tio n d a te ) a t $18% a sh. N o ad ju stm en t for interest o r 170% of su m of su b o rd in ated debt an d tangihie n e t w o rth . T h e se ra tio s w ill d e crea se to 15% a n d 135% , re sp e c tiv e ly , a t D ec. 31, 1978. 7. C o m p a n y m a y in c u r n e t a d d itio n a l in d e b te d n e ss n o t ex ceed in g $7,000,000 fo r p u r chase of ad d itio n al tim b erlan d s (w hich w ould im m ediately becom e su b ject to th e secu rity in terest m entioned above) and for certain o th er p u rp o ses, w hich in d eb ted n ess w hen ad d ed to o u tstan d in g sh o rt-term borrow ings shall a t no tim e e x ceed $25,000,000. ... 8. B e g in n in g J a n . 1, 1978, t h e C o . m u s t f u lly re p a y its sh o rt-term b a n k loans for a p erio d of th irty consecutive d a y s d u rin g first eight m onths of each calendar year. c a p ita l Warrants: O u ts ta n d in g D ec. 31, 1977, w a r ra n ts to p u rc h a s e 729,222 c o m m o n s h a re s a t $ 2 2 .5 0 a s h . W a r r a n t s e x p ir e D e c . 1, 1978. F u l ly reg istered in form . . Issu e d o rig in ally O ct. 23, 1968 in connection w i t h C o m p a n y 's p u r c h a s e o f 1,823,056 s h a r e s of its com m on from T enneco C orp. W a rra n t A gents: B an k ers T ru st C o. N ew Y ork and C rocker N ational B ank, San F ra n cisco. , . v O ffered (729,222 com . p u rc h a se w a rra n ts ) J u n e 10, 1969 a t $20 a w a r r a n t th r u L e h m a n B ro th ers and J. B arth & Co. an d associates.