MAXXAM Posts Its Second Quarter 2013 and First Half 2013 Unaudited Financial Information

MAXXAM Posts Its Second Quarter 2013 and First Half 2013 Unaudited Financial Information

HOUSTON--(BUSINESS WIRE)-- MAXXAM Inc. (OTCBB:MAXX) has posted its unaudited financial information for the three months and six months ended June 30, 2013. Attached hereto is the financial information of MAXXAM Inc. described below as of June 30, 2013. 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 follow 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)

June 30,
2013

December 31,
2012

(unaudited)

Assets

Current assets:

Cash and cash equivalents

$4.4

$7.5

Marketable securities and other short-term investments

29.6

26.9

Deferred income taxes

1.1

1.1

Prepaid expenses and other current assets

0.6

0.5

Restricted cash

0.1

0.1

Total current assets

35.8

36.1

Property and equipment, net of accumulated depreciation of $61.5

and $60.2, respectively (1)

89.3

91.7

Real estate inventory

41.0

43.0

Deferred financing costs

1.7

1.8

Investment in PM Texas LLC

10.0

9.7

Other long-term assets and investments

0.5

0.8

Restricted cash

1.6

1.6

Total assets

$179.9

$184.7

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$0.5

$0.8

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

3.6

3.5

Accrued interest

0.5

0.5

Deferred income

1.3

1.5

Accrued compensation and related benefits

1.1

0.6

Other accrued liabilities

4.0

4.0

Total current liabilities

11.0

10.9

Long-term debt, less current maturities

97.9

99.7

Accrued pension

18.7

19.2

Other noncurrent liabilities

6.3

7.5

Losses in excess of investment in FireRock, LLC (2)

3.3

2.9

Total liabilities

137.2

140.2

Commitments and contingencies

Stockholders' equity:

Preferred stock

0.3

0.3

Common stock

5.2

5.2

Additional paid in capital

225.6

225.6

Retained earnings

2.1

3.6

Accumulated other comprehensive loss

(19.9

)

(19.6

)

Treasury stock, at cost

(170.6

)

(170.6

)

Total stockholders' equity

42.7

44.5

Total liabilities and stockholders' equity

$179.9

$184.7

(1) In August 2013, a subsidiary of the Company sold to an unaffiliated third-party approximately one-third of the undeveloped real estate acreage adjacent to Sam Houston Race Park and received its share of the net proceeds ($4.7 million).

(2) In July 2013, FireRock, LLC closed on the sale of its country club assets; the Company's share of the net proceeds from this sale is approximately $2.5 million. This transaction substantially completes the joint venture's business activities.

Exhibit II

MAXXAM INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions of dollars)

Three Months Ended
June 30,

Six Months Ended
June 30,

2013

2012

2013

2012

Unaudited

Unaudited

Sales:

Leased properties (1)

$

3.2

$

3.3

$

6.3

$

6.2

Lot sales (2)

1.7

0.6

1.7

0.6

Other real estate sales (2)

0.2

-

2.9

-

Realty

1.0

0.5

1.9

1.1

Other

-

0.1

0.2

0.3

Total sales

6.1

4.5

13.0

8.2

Cost of sales and operations:

Leased properties

-

-

-

-

Lot sales

0.5

0.3

0.5

0.3

Other real estate sales

-

-

2.1

-

Realty

1.0

0.5

1.7

0.9

Other

-

-

-

-

Selling, general and administrative expenses

2.8

2.9

5.6

6.5

Depreciation and amortization

0.9

0.9

1.8

1.9

Gain related to the Palco Debtors

-

(485.8

)

-

(485.8

)

Total costs and expenses

5.2

(481.2

)

11.7

(476.2

)

Operating income (loss):

Real estate

2.5

2.0

4.1

2.6

Racing

(0.2

)

(0.2

)

(0.4

)

(0.4

)

Corporate

(1.4

)

(1.9

)

(2.4

)

(3.6

)

Forest Products

-

485.8

-

485.8

Total operating income

0.9

485.7

1.3

484.4

Other income (expense):

Equity losses from joint ventures

(0.5

)

(0.5

)

(0.6

)

(0.6

)

Investment, interest and other income (expense), net

1.5

0.4

1.9

0.7

Interest expense

(2.0

)

(2.0

)

(3.9

)

(4.0

)

Amortization of deferred financing costs

-

-

(0.1

)

(0.1

)

Income (loss) before income taxes

(0.1

)

483.6

(1.4

)

480.4

Provision for income taxes

(0.1

)

(0.1

)

(0.1

)

(0.1

)

Net income (loss)

$

(0.2

)

$

483.5

$

(1.5

)

$

480.3

(1) As previously disclosed, a wholly owned subsidiary of the Company, Horizon Properties Corporation, leased mineral rights in certain acreage in Walker and San Jacinto Counties, Texas, in March 2012 for an initial term of three years; the subsidiary is entitled to royalty payments on future production of hydrocarbons. In the first six months of 2013, the subsidiary received one royalty check for approximately $37,000.

(2) As previously disclosed, in the first quarter of 2013 a subsidiary of the Company sold one of its two custom homes for $2.0 million. In the second quarter of 2013, the same buyer (a lottery winner) purchased five lots in the Company's Eagles Nest development.

Exhibit III

MAXXAM INC.
SHARES OUTSTANDING REPORT

June 30,
2013

December 31,
2012

Preferred Stock

Par value

$

125.00

$

125.00

Liquidation value

$

187.50

$

187.50

Shares authorized

10,000

10,000

Shares issued

2,675

2,675

Shares outstanding

2,664

2,664

Common Stock

Par value

$

125.00

$

125.00

Shares authorized

52,000

52,000

Shares issued

41,853

41,853

Shares outstanding

18,142

18,179

Treasury Stock

Class A Preferred Stock

11

11

Common Stock

23,711

23,674




MAXXAM Inc.
Emily Madison, 713-975-7600

KEYWORDS: United States North America Texas

INDUSTRY KEYWORDS:

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