MAXXAM Posts Its 2012 Audited Financial Statements

HOUSTON--(BUSINESS WIRE)-- MAXXAM Inc. (OTCBB:MAXX) has posted its audited financial statements for the year ended December 31, 2012. Attached hereto are the financial statements described below of the Company as of December 31, 2012, together with certain other information. These financial statements, the related notes and other miscellaneous information have been posted through the pink sheets financial reports service at www.otcmarkets.com, stock symbol "MAXX," under the tab labeled "Filings and Disclosure."

The follow exhibits are attached:

  • Exhibit I - Consolidated Balance Sheets
  • Exhibit II - Consolidated Statements of Income
  • Exhibit III - Consolidated Statements of Cash Flows
  • Exhibit IV - Consolidated Statements Of Changes In Stockholders' Equity (Deficit)
  • Exhibit V - Shares Outstanding Report
  • Exhibit VI - Miscellaneous Information
   

Exhibit I

 
MAXXAM INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In millions of dollars)
 
December 31,

2012

December 31,

2011

 
Assets
Current assets:
Cash and cash equivalents $ 7.5 $ 24.5
Marketable securities and other short-term investments 26.9 11.6
Deferred income taxes 1.1 3.0
Prepaid expenses and other current assets 0.5 0.7
Restricted cash   0.1     5.1  
Total current assets 36.1 44.9
Property and equipment, net of accumulated depreciation of $60.2

and $56.7, respectively

91.7 95.2
Real estate inventory 43.0 44.0
Deferred income taxes - 8.2
Deferred financing costs 1.8 2.1
Investment in PM Texas LLC 9.7 10.3
Other long-term assets and investments 0.8 0.5
Restricted cash   1.6     1.7  
Total assets $ 184.7   $ 206.9  
 
Liabilities and Stockholders' Equity (Deficit)
Current liabilities:
Accounts payable $ 0.8 $ 0.7
Short-term borrowings and current maturities of long-term debt 3.5 3.2
Accrued interest 0.5 0.5
Deferred income 1.5 2.6
Accrued compensation and related benefits 0.6 0.8
Other accrued liabilities   4.0     6.5  
Total current liabilities 10.9 14.3
Long-term debt, less current maturities 99.7 103.1
Accrued pension 19.2 19.5
Other noncurrent liabilities 7.5 5.6
Losses in excess of investment in FireRock, LLC 2.9 2.3
Losses in excess of investment in Palco Debtors   -     484.2  
Total liabilities   140.2     629.0  
Commitments and contingencies
Stockholders' equity (deficit):
Preferred stock 0.3 0.3
Common stock 5.2 5.2
Additional paid in capital 225.6 225.6
Accumulated equity (deficit) 3.6 (463.8 )
Accumulated other comprehensive loss (19.6 ) (19.3 )
Treasury stock, at cost   (170.6 )   (170.1 )
Total stockholders' equity (deficit)   44.5     (422.1 )
Total liabilities and stockholders' equity (deficit) $ 184.7   $ 206.9  
       

Exhibit II

 
MAXXAM INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In millions of dollars)
 
Years Ended

December 31,

2012 2011
 
 
Sales:
Real estate $ 17.5 $ 15.6
Racing   -     10.8  
Total sales   17.5     26.4  
 
Cost and expenses:
Cost of sales and operations:
Real estate 2.7 0.4
Real estate inventory write-down - 19.5
Racing - 7.4
Selling, general and administrative expenses 12.3 17.7
Depreciation and amortization 3.5 4.7
Reversal of net investment in the Palco Debtors (485.8 ) -
Gain on sale of interest in racing operations, net of expenses - (41.1 )
Reversal of retiree medical benefits liabilities - (3.9 )
Reversal of net investment in Palmas Country Club, Inc.   -     (32.7 )
Total costs and expenses   (467.3 )   (28.0 )
 
Operating income (loss):
Real estate 5.1 17.0
Racing (0.8 ) 39.3
Corporate (5.3 ) (1.9 )
Forest Products   485.8     -  
Total operating income (loss)   484.8     54.4  
 
Other income (expense):
Equity losses from joint ventures (1.7 ) (2.1 )
Investment, interest and other income (expense), net 1.3 1.6
Interest expense (8.0 ) (9.0 )
Amortization of deferred financing costs (0.3 ) (0.2 )
Loss on early extinguishment of debt   -     (1.4 )
Income from continuing operations before income taxes 476.1 43.3
Provision for income taxes   (8.7 )   (3.8 )
Income from continuing operations 467.4 39.5
Discontinued operations

Income from operations of Motel Assets
(including gain on disposal of $7.4 for the year
ended December 31, 2011), net of tax

  -     7.9  
Net income $ 467.4   $ 47.4  
   

Exhibit III

 
MAXXAM INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions of dollars)
 
Years Ended December 31,
2012 2011
 
Cash flows from operating activities:
Net income $ 467.4 $ 47.4

Adjustments to reconcile net income to net cash used for operating activities:

Reversal of net investment in the Palco Debtors (485.8 ) -
Reversal of net investment in Palmas Country Club, Inc. - (32.7 )
Depreciation and amortization 3.5 4.7
Non-cash stock-based compensation expense - 0.5
Reversal of retiree medical benefits liabilities - (3.9 )
Gain on sale of assets - (0.4 )
Gain on sale of interest in racing operations - (42.9 )
Gain on sale of Motel Assets - (7.4 )
Real estate inventory write-down - 19.5
Net (gains) losses from investments - 0.2
Amortization of deferred financing costs 0.3 0.2
Loss on early extinguishment of debt - 1.4
Equity losses from joint ventures 1.7 2.1
Deferred taxes 11.0 3.6
Other - (2.8 )
Increase (decrease) in cash resulting from changes in:
Receivables - (0.9 )
Real estate inventory 1.0 0.5
Prepaid expenses and other assets 0.2 (0.1 )
Accounts payable 0.1 (1.1 )
Deferred revenue related to mineral lease 2.8 -
Other accrued liabilities (2.8 ) (2.8 )
Long-term assets and long-term liabilities (2.7 ) (1.4 )
Other   (0.5 )   (0.3 )
Net cash used for operating activities   (3.8 )   (16.6 )
 
Cash flows from investing activities:
Proceeds from sale of interest in racing operations - 56.0
Proceeds from sale of Motel Assets, net - 5.5
Sales of marketable securities and other investments 0.5 8.2
Purchases of marketable securities and other investments (14.7 ) (11.3 )
Net decrease (increase) in restricted cash 5.1 (0.1 )
Investment in joint ventures (0.5 ) (1.1 )
Decrease in cash due to deconsolidation of racing operations - (1.3 )
Capital expenditures   -     -  
Net cash (used for) provided by investing activities   (9.6 )   55.9  
 
Cash flows from financing activities:
Principal payments on long-term debt (3.1 ) (2.9 )
Payoff of EN Facility - (2.6 )
Payoff of EN II Loan - (12.8 )
Treasury stock purchases   (0.5 )   -  
Net cash used for financing activities   (3.6 )   (18.3 )
 
Net (decrease) increase in cash and cash equivalents (17.0 ) 21.0
Cash and cash equivalents at beginning of the year  

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