-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, LMV5/6CwjfIKLbOusfeDWBNxL+MGEogBaKQOY4hwk6wnFHpQjdr7AeNgBgjwrv1y kyXcmUDp8ut394KWjdoNMA== 0001032210-02-000904.txt : 20020524 0001032210-02-000904.hdr.sgml : 20020524 20020524145437 ACCESSION NUMBER: 0001032210-02-000904 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20020513 ITEM INFORMATION: Acquisition or disposition of assets ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20020524 FILER: COMPANY DATA: COMPANY CONFORMED NAME: POTLATCH CORP CENTRAL INDEX KEY: 0000079716 STANDARD INDUSTRIAL CLASSIFICATION: PAPER MILLS [2621] IRS NUMBER: 820156045 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-05313 FILM NUMBER: 02662125 BUSINESS ADDRESS: STREET 1: 601 W RIVERSIDE AVE STREET 2: STE 1100 CITY: SPOKANE STATE: WA ZIP: 99201 BUSINESS PHONE: 5098351500 MAIL ADDRESS: STREET 1: 601 W RIVERSIDE AVE SUITE 1100 CITY: SPOKANE STATE: WA ZIP: 99201 FORMER COMPANY: FORMER CONFORMED NAME: POTLATCH FORESTS INC DATE OF NAME CHANGE: 19730827 8-K 1 d8k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report: May 13, 2002 (Date of earliest event reported) POTLATCH CORPORATION ------------------------------------------------------------- (Exact name of registrant as specified in its charter) Delaware 1-5313 82-0156045 - ---------------------------- ------------------- ---------------------- (State or Other Jurisdiction (Commission (I.R.S. Employer of Incorporation) File Number) Identification Number) 601 W. Riverside Avenue, Suite 1100, Spokane WA, 99201 ------------------------------------------------ -------------- (Address of principal executive offices) (Zip Code) 509-835-1500 ------------ (Registrant's telephone number, including area code) ITEM 2. DISPOSITION OF ASSETS. - ------------------------------ On March 18, 2002, Potlatch Corporation announced that it had signed a definitive agreement for the sale of Potlatch's Cloquet, Minnesota, pulp and printing papers facilities and associated assets to a subsidiary of Sappi Limited. On May 13, 2002, Potlatch completed the sale to Sappi Cloquet LLC (formerly named Northern Holdings LLC), a wholly owned domestic subsidiary of Sappi Limited. In consideration for the assets, Northern Holdings paid Potlatch approximately $480 million in cash and assumed certain liabilities. The consideration paid to Potlatch was determined as a result of arms-length negotiations between the buyer and Potlatch. The Asset Purchase Agreement, dated as of March 18, 2002, between Potlatch Corporation, Sappi Limited and Northern Holdings LLC, now known as Sappi Cloquet LLC, filed as Exhibit 2 to Potlatch Corporation's Quarterly Report on Form 10-Q filed for the quarter ended March 31, 2002, is incorporated herein by reference. ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS. - ------------------------------------------ (a) Financial Statements of Businesses Acquired. ------------------------------------------- Not Applicable. (b) Pro Forma Financial Information. ------------------------------- Unaudited Pro Forma Condensed Consolidated Financial Statements -2- Potlatch Corporation and Consolidated Subsidiaries Pro Forma Statement of Operations Three Months Ended March 31, 2002 Unaudited (Dollars in thousands - except per-share amounts)
Pro Forma Pro Forma Historical Adjustments Results - ------------------------------------------------------------------------------------------- Net sales $ 321,451 $ -- $ 321,451 - ------------------------------------------------------------------------------------------- Costs and expenses: Depreciation, amortization and cost of fee timber harvested 30,735 -- 30,735 Materials, labor and other operating expenses 276,588 -- 276,588 Selling, general and administrative expenses 22,019 -- 22,019 - ------------------------------------------------------------------------------------------- 329,342 -- 329,342 - ------------------------------------------------------------------------------------------- Loss from operations (7,891) -- (7,891) Interest expense (18,626) 2,366 (16,260) Other income, net 1,592 -- 1,592 - ------------------------------------------------------------------------------------------- Loss before taxes on income (24,925) 2,366 (22,559) Provision (benefit) for taxes on income (9,721) 923 (8,798) - ------------------------------------------------------------------------------------------- Loss from continuing operations (15,204) 1,443 (13,761) Discontinued operations: Loss from discontinued operations, net of tax benefit of $1,520 (2,378) -- (2,378) Loss on disposal of discontinued operations, net of tax benefit of $95,774 (149,799) -- (149,799) - ------------------------------------------------------------------------------------------- Net loss $(167,381) $ 1,443 $(165,938) =========================================================================================== Net loss per common share from continuing operations: Basic $ (.54) $ .05 $ (.49) Diluted (.54) .05 (.49) Average shares outstanding (in thousands): Basic 28,353 28,353 Diluted 28,353 28,353 - -------------------------------------------------------------------------------------------
-3- Potlatch Corporation and Consolidated Subsidiaries Pro Forma Statement of Operations Year Ended December 31, 2001 Pro forma amounts unaudited (Dollars in thousands - except per-share amounts)
Pro Forma Pro Forma Historical Adjustments Results - ------------------------------------------------------------------------------------------------- Net sales $ 1,751,996 $ (461,728) $ 1,290,268 - ------------------------------------------------------------------------------------------------- Costs and expenses: Depreciation, amortization and cost of fee timber harvested 169,388 (53,579) 115,809 Materials, labor and other operating expenses 1,504,950 (406,073) 1,098,877 Selling, general and administrative expenses 125,148 (38,831) 86,317 Restructuring and other charges 2,750 -- 2,750 - ------------------------------------------------------------------------------------------------- 1,802,236 (498,483) 1,303,753 - ------------------------------------------------------------------------------------------------- Loss from operations (50,240) 36,755 (13,485) Interest expense (77,853) 6,018 (71,835) Other expense, net (2,145) (76) (2,221) - ------------------------------------------------------------------------------------------------- Loss before taxes on income (130,238) 42,697 (87,541) Provision (benefit) for taxes on income (50,793) 16,652 (34,141) - ------------------------------------------------------------------------------------------------- Loss from continuing operations (79,445) 26,045 (53,400) Discontinued operations: Loss from discontinued operations, net of tax benefit of $14,305 -- (22,374) (22,374) Loss on disposal of discontinued operations, net of tax benefit of $95,774 -- (149,799) (149,799) - ------------------------------------------------------------------------------------------------- Net loss $ (79,445) $ (146,128) $ (225,573) ================================================================================================= Net loss per common share from continuing operations: Basic $ (2.81) $ .92 $ (1.89) Diluted (2.81) .92 (1.89) Average shares outstanding (in thousands): Basic 28,282 28,282 Diluted 28,282 28,282 - -------------------------------------------------------------------------------------------------
-4- Potlatch Corporation and Consolidated Subsidiaries Pro Forma Balance Sheet March 31, 2002 Unaudited (Dollars in thousands - except per-share amounts)
Pro Forma Pro Forma Historical Adjustments Results - -------------------------------------------------------------------------------------- Assets Current assets: Cash and short-term investments $ 9,213 $ 266,500 $ 275,713 Receivables, net 160,598 - 160,598 Inventories 117,860 - 117,860 Prepaid expenses 29,973 - 29,973 Assets held for sale 548,576 (509,867) 38,709 - -------------------------------------------------------------------------------------- Total current assets 866,220 (243,367) 622,853 Land, other than timberlands 8,681 - 8,681 Plant and equipment, at cost less accumulated depreciation 799,059 - 799,059 Timber, timberlands and related logging facilities 396,662 - 396,662 Other assets 113,501 - 113,501 - -------------------------------------------------------------------------------------- $2,184,123 $(243,367) $1,940,756 ====================================================================================== Liabilities and Stockholders' Equity Current liabilities: Notes payable $ 15,000 $ (15,000) $ - Current installments on long-term debt 32,606 - 32,606 Accounts payable and accrued liabilities 227,135 - 227,135 Early maturing long-term debt 198,500 (198,500) - Liabilities related to assets held for sale 38,350 (29,867) 8,483 - -------------------------------------------------------------------------------------- Total current liabilities 511,591 (243,367) 268,224 Long-term debt 818,536 - 818,536 Other long-term obligations 196,739 - 196,739 Deferred taxes 119,447 - 119,447 Stockholders' equity 537,810 - 537,810 - -------------------------------------------------------------------------------------- $2,184,123 $(243,367) $1,940,756 ======================================================================================
-5- Explanatory Notes - ----------------- The pro forma operating statements presented herein reflect the results for Potlatch Corporation as historically reported, adjusted for the company's exit from the printing papers business as a result of the sale of a majority of the assets of the Printing Papers segment to a domestic subsidiary of Sappi Limited. Net sales, costs and expenses and the benefit for taxes on income have been adjusted to remove from continuing operations the period results for the Printing Papers segment. Also, interest expense related to debt required to be repaid as a result of the asset sale has been removed from the results for the periods presented, and taxes adjusted accordingly. The pro forma balance sheet presented reflects the financial position of Potlatch Corporation as of March 31, 2002, as historically reported, and as adjusted for the sale described in the previous paragraph and the repayment of debt as required by the company's credit agreement. (c) Exhibits. -------- The following exhibit is filed as part of this report: 2.1 Asset Purchase Agreement dated as of March 18, 2002, between Potlatch Corporation, Sappi Limited and Northern Holdings LLC, now known as Sappi Cloquet LLC, filed as Exhibit 2 to Potlatch Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2002 (incorporated herein by reference) (the Registrant agrees to furnish supplementally to the Commission upon request a copy of any omitted schedule). -6- SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. Dated: May 24, 2002 POTLATCH CORPORATION By /s/ Malcolm A. Ryerse ------------------------- Malcolm A. Ryerse Secretary -7- EXHIBIT INDEX ------------- EXHIBIT NO. DESCRIPTION - ---------- ----------- 2.1 Asset Purchase Agreement, dated as of March 18, 2002, between Potlatch Corporation, Sappi Limited and Northern Holdings LLC, now known as Sappi Limited LLC, filed as Exhibit 2 to Potlatch Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2002 (incorporated herein by reference) (The Registrant agrees to furnish supplementally to the Commission upon request a copy of any omitted schedule). -8- -----END PRIVACY-ENHANCED MESSAGE-----