| Ohio |
34-1888342 | |
| (State or other jurisdiction of incorporation or
organization) |
(I.R.S. employer identification no.) |
| 1100 Superior Avenue Cleveland, Ohio |
44114-2598 | |
| (Address of principal executive offices) |
(Zip Code) |
| Common shares outstanding at November 14, 2002: |
4,978,051 | |
| |
| PART I. FINANCIAL INFORMATION |
Page Number | |
| Item 1 |
||
| 3 | ||
| 4 | ||
| 5 | ||
| 6-14 | ||
| Item 2 |
||
| 15-27 | ||
| Item 3 |
||
| 28 | ||
| Item 4 |
||
| 29 | ||
| PART II. OTHER INFORMATION |
||
| Item 1 |
||
| 30 | ||
| Item 2 |
||
| 30 | ||
| Item 3 |
||
| 30 | ||
| Item 4 |
||
| 30 | ||
| Item 5 |
||
| 30 | ||
| Item 6 |
||
| 30 | ||
| 31-33 |
| Three Months Ended September 30 |
Nine Months Ended September 30 |
|||||||||||||||
| 2002 |
2001 |
2002 |
2001 |
|||||||||||||
| NET SALES AND OPERATING REVENUES |
$ |
123,653 |
|
$ |
120,107 |
|
$ |
298,600 |
|
$ |
305,386 |
| ||||
| COSTS AND EXPENSES |
||||||||||||||||
| Cost of goods sold and operating expenses |
|
89,745 |
|
|
89,254 |
|
|
215,874 |
|
|
225,335 |
| ||||
| Depreciation, depletion and amortization |
|
10,562 |
|
|
10,572 |
|
|
24,934 |
|
|
26,327 |
| ||||
| General, administrative and selling expenses |
|
8,889 |
|
|
9,741 |
|
|
26,331 |
|
|
26,239 |
| ||||
| Provision for restructuring and early retirement programs |
|
-0- |
|
|
-0- |
|
|
-0- |
|
|
4,123 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| |
109,196 |
|
|
109,567 |
|
|
267,139 |
|
|
282,024 |
| |||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| OPERATING INCOME |
|
14,457 |
|
|
10,540 |
|
|
31,461 |
|
|
23,362 |
| ||||
| (Loss) gain on disposition of assets |
|
(17 |
) |
|
25 |
|
|
55 |
|
|
139 |
| ||||
| Interest expense |
|
(10,618 |
) |
|
(9,988 |
) |
|
(31,109 |
) |
|
(30,281 |
) | ||||
| Other expense, net |
|
(313 |
) |
|
(203 |
) |
|
(739 |
) |
|
(6,092 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| INCOME (LOSS) BEFORE INCOME TAXES |
|
3,509 |
|
|
374 |
|
|
(332 |
) |
|
(12,872 |
) | ||||
| INCOME TAXES (BENEFIT) |
|
1,494 |
|
|
147 |
|
|
(406 |
) |
|
(5,020 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| NET INCOME (LOSS) |
$ |
2,015 |
|
$ |
227 |
|
$ |
74 |
|
$ |
(7,852 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| NET INCOME (LOSS) PER SHAREBASIC AND ASSUMING DILUTION |
$ |
0.40 |
|
$ |
0.05 |
|
$ |
0.01 |
|
$ |
(1.57 |
) | ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| DIVIDENDS PER SHARE OF COMMON STOCK |
$ |
-0- |
|
$ |
0.20 |
|
$ |
-0- |
|
$ |
0.60 |
| ||||
| |
|
|
|
|
|
|
|
|
|
|
| |||||
| ASSETS | ||||||||
| (UNAUDITED) |
||||||||
| September 30 2002 |
December 31 2001 |
|||||||
| CURRENT ASSETS |
||||||||
| Cash and cash equivalents |
$ |
-0- |
|
$ |
2,307 |
| ||
| Accounts receivable, net of reserve for doubtful accounts (2002 - $3,977; 2001 - $3,600) |
|
64,920 |
|
|
46,477 |
| ||
| Inventories |
||||||||
| Raw materials and finished products |
|
36,594 |
|
|
34,578 |
| ||
| Operating supplies |
|
14,333 |
|
|
14,018 |
| ||
| |
|
|
|
|
| |||
| |
50,927 |
|
|
48,596 |
| |||
| Deferred income taxes |
|
4,948 |
|
|
5,236 |
| ||
| Prepaid expenses |
|
13,543 |
|
|
6,565 |
| ||
| |
|
|
|
|
| |||
| TOTAL CURRENT ASSETS |
|
134,338 |
|
|
109,181 |
| ||
| PROPERTY AND EQUIPMENT |
|
729,171 |
|
|
716,301 |
| ||
| Less allowances for depreciation, depletion and amortization |
|
290,001 |
|
|
266,702 |
| ||
| |
|
|
|
|
| |||
| |
439,170 |
|
|
449,599 |
| |||
| GOODWILL, net of accumulated amortization ($11,093 in 2002 and 2001) |
|
73,044 |
|
|
73,044 |
| ||
| PREPAID PENSION COSTS |
|
37,581 |
|
|
36,451 |
| ||
| OTHER ASSETS |
|
12,132 |
|
|
11,874 |
| ||
| |
|
|
|
|
| |||
| TOTAL ASSETS |
$ |
696,265 |
|
$ |
680,149 |
| ||
| |
|
|
|
|
| |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| |
(UNAUDITED) |
|
||||||
| September 30 2002 |
December 31 2001 |
|||||||
| CURRENT LIABILITIES |
||||||||
| Current portion of long-term debt |
$ |
2,499 |
|
$ |
2,353 |
| ||
| Accounts payable |
|
21,064 |
|
|
20,828 |
| ||
| Payrolls and other accrued compensation |
|
7,325 |
|
|
7,312 |
| ||
| Accrued expenses |
|
13,754 |
|
|
15,302 |
| ||
| Accrued interest expense |
|
7,808 |
|
|
10,353 |
| ||
| Income taxes payable |
|
6,055 |
|
|
6,055 |
| ||
| |
|
|
|
|
| |||
| TOTAL CURRENT LIABILITIES |
|
58,505 |
|
|
62,203 |
| ||
| LONG-TERM DEBT, less current portion |
|
402,808 |
|
|
386,420 |
| ||
| POSTRETIREMENT BENEFITS OBLIGATIONS |
|
47,588 |
|
|
45,746 |
| ||
| OTHER LONG-TERM LIABILITIES |
|
30,185 |
|
|
34,587 |
| ||
| DEFERRED INCOME TAXES |
|
34,275 |
|
|
29,195 |
| ||
| STOCKHOLDERS' EQUITY |
||||||||
| Common stock, par value $1 per share, authorized 30,000 shares; issued 7,253 |
|
7,253 |
|
|
7,253 |
| ||
| Additional capital |
|
9,664 |
|
|
9,460 |
| ||
| Retained earnings |
|
145,949 |
|
|
145,875 |
| ||
| Accumulated other comprehensive loss |
|
(8,749 |
) |
|
(9,321 |
) | ||
| |
|
|
|
|
| |||
| |
154,117 |
|
|
153,267 |
| |||
| Treasury stock, at cost - 2,275 and 2,279 shares at respective dates |
|
(31,213 |
) |
|
(31,269 |
) | ||
| |
|
|
|
|
| |||
| TOTAL STOCKHOLDERS EQUITY |
|
122,904 |
|
|
121,998 |
| ||
| |
|
|
|
|
| |||
| TOTAL LIABILITIES AND STOCKHOLDERS EQUITY |
$ |
696,265 |
|
$ |
680,149 |
| ||
| |
|
|
|
|
| |||
| Nine Months Ended September 30 |
||||||||
| 2002 |
2001 |
|||||||
| OPERATING ACTIVITIES |
||||||||
| Net income (loss) |
$ |
74 |
|
$ |
(7,852 |
) | ||
| Adjustments to reconcile net income (loss) to net cash (used for) provided by operating activities: |
||||||||
| Depreciation, depletion and amortization |
|
24,934 |
|
|
26,327 |
| ||
| Deferred vessel costs |
|
(2,770 |
) |
|
(2,756 |
) | ||
| Deferred winter maintenance costs |
|
(3,095 |
) |
|
(3,060 |
) | ||
| Income tax refund |
|
6,342 |
|
|
-0- |
| ||
| Deferred income taxes |
|
(974 |
) |
|
(11,075 |
) | ||
| Restructuring and early retirement programs |
|
(1,871 |
) |
|
4,123 |
| ||
| Provision for notes and trade receivables |
|
377 |
|
|
4,023 |
| ||
| Gain on disposition of assets |
|
(55 |
) |
|
(139 |
) | ||
| (Increase) decrease in prepaid pension costs |
|
(1,130 |
) |
|
1,562 |
| ||
| Increase in accounts receivable |
|
(18,820 |
) |
|
(14,171 |
) | ||
| (Increase) decrease in inventories |
|
(2,331 |
) |
|
53 |
| ||
| Increase in accounts payable |
|
236 |
|
|
4,250 |
| ||
| Increase (decrease) in payrolls and other accrued compensation |
|
13 |
|
|
(902 |
) | ||
| Increase (decrease) in accrued expenses |
|
194 |
|
|
(1,710 |
) | ||
| Decrease in accrued interest |
|
(2,545 |
) |
|
(2,362 |
) | ||
| Increase in income taxes payable |
|
-0- |
|
|
1,531 |
| ||
| Other operating activities |
|
(3,082 |
) |
|
2,347 |
| ||
| |
|
|
|
|
| |||
| NET CASH (USED FOR) PROVIDED BY OPERATING ACTIVITIES |
|
(4,503 |
) |
|
189 |
| ||
| INVESTING ACTIVITIES |
||||||||
| Capital expenditures |
|
(15,060 |
) |
< | ||||