MAXXAM Posts Its Third Quarter 2012 and First Nine Months of 2012 Unaudited Financial Information

MAXXAM Posts Its Third Quarter 2012 and First Nine Months of 2012 Unaudited Financial Information

HOUSTON--(BUSINESS WIRE)-- MAXXAM Inc. (OTCBB:MAXX) has posted its unaudited financial information for the three months and nine months ended September 30, 2012. Attached hereto is the financial information of MAXXAM Inc. described below as of September 30, 2012. This financial information has been posted through the pink sheets financial reports service at www.otcmarkets.com, stock symbol "MAXX," under the tab labeled "Filings and Disclosure."


The following exhibits are attached:

  • Exhibit I - Consolidated Balance Sheets

  • Exhibit II - Consolidated Statements of Operations

  • Exhibit III - Shares Outstanding Report

Exhibit I

MAXXAM INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(In millions of dollars)

September 30,

December 31,

2012

2011

Unaudited

Assets

Current assets:

Cash and cash equivalents

$

10.5

$

24.5

Marketable securities and other short-term investments

26.4

11.6

Deferred income taxes

3.0

3.0

Prepaid expenses and other current assets

0.6

0.7

Restricted cash

0.1

5.1

Total current assets

40.6

44.9

Property and equipment, net of accumulated depreciation of $59.4

and $56.7, respectively

92.5

95.2

Real estate inventory

43.6

44.0

Deferred income taxes

8.2

8.2

Deferred financing costs

1.9

2.1

Investment in PM Texas LLC

9.7

10.3

Other long-term assets and investments

0.5

0.5

Restricted cash

1.6

1.7

Total assets

$

198.6

$

206.9

Liabilities and Stockholders' Equity (Deficit)

Current liabilities:

Accounts payable

$

0.4

$

0.7

Short-term borrowings and current maturities of long-term debt

3.2

3.2

Accrued interest

0.5

0.5

Deferred income

1.6

2.6

Accrued compensation and related benefits

1.6

0.8

Other accrued liabilities

6.6

6.5

Total current liabilities

13.9

14.3

Long-term debt, less current maturities

100.8

103.1

Accrued pension and other postretirement benefits

17.4

19.5

Other noncurrent liabilities

6.5

5.6

Losses in excess of investment in FireRock, LLC

2.7

2.3

Losses in excess of investment in Palco Debtors

-

484.2

Total liabilities

141.3

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)

14.0

(463.8

)

Accumulated other comprehensive loss

(17.5

)

(19.3

)

Treasury stock, at cost

(170.3

)

(170.1

)

Total stockholders' equity (deficit)

57.3

(422.1

)

Total liabilities and stockholders' equity (deficit)

$

198.6

$

206.9

Exhibit II

MAXXAM INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(In millions of dollars)

Three Months Ended

September 30,

Nine Months Ended

September 30,

2012

2011

2012

2011

Unaudited

Unaudited

Sales:

Real estate (1)

$

4.7

$

3.6

$

12.9

$

11.2

Racing

-

-

-

10.8

Total sales

4.7

3.6

12.9

22.0

Cost and expenses:

Cost of sales and operations:

Real estate

0.5

0.7

1.7

2.4

Real estate inventory write-down

-

18.4

-

18.4

Racing

-

-

-

7.3

Selling, general and administrative expenses

3.1

3.1

9.6

15.6

Depreciation and amortization

0.8

1.0

2.7

3.4

Gain related to the Palco Debtors (2)

-

-

(485.8

)

-

Gain on sale of interest in racing segment

-

-

-

(42.9

)

Total costs and expenses

4.4

23.2

(471.8

)

4.2

Operating income (loss):

Real estate

1.6

(18.4

)

4.2

(18.2

)

Racing

(0.1

)

-

(0.5

)

41.9

Corporate

(1.2

)

(1.2

)

(4.8

)

(5.9

)

Forest Products

-

-

485.8

-

Total operating income (loss)

0.3

(19.6

)

484.7

17.8

Other income (expense):

Equity losses from joint ventures

(0.9

)

(0.7

)

(1.5

)

(1.3

)

Investment, interest and other income (expense), net

0.2

0.4

0.9

1.7

Interest expense

(2.0

)

(2.3

)

(6.0

)

(7.1

)

Amortization of deferred financing costs

(0.1

)

-

(0.2

)

(0.2

)

Loss on early extinguishment of debt

-

-

-

(1.4

)

Income (loss) from continuing operations before income taxes

(2.5

)

(22.2

)

477.9

9.5

Provision for income taxes

-

(0.1

)

(0.1

)

(3.9

)

Income (loss) from continuing operations

(2.5

)

(22.3

)

477.8

5.6

Discontinued operations

Income from operations of Motel Assets

(including gain on disposal of $7.4 for the nine

months ended September 30, 2011), net of tax