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

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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, 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



(In millions of dollars)

June 30,

December 31,



Current assets:
Cash and cash equivalents$4.4$7.5
Marketable securities and other short-term investments29.626.9
Deferred income taxes1.11.1
Prepaid expenses and other current assets0.60.5
Restricted cash0.1 0.1 
Total current assets35.836.1
Property and equipment, net of accumulated depreciation of $61.5

and $60.2, respectively (1)

Real estate inventory41.043.0
Deferred financing costs1.71.8
Investment in PM Texas LLC10.09.7
Other long-term assets and investments0.50.8
Restricted cash1.6 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 debt3.63.5
Accrued interest0.50.5
Deferred income1.31.5
Accrued compensation and related benefits1.10.6
Other accrued liabilities4.0 4.0 
Total current liabilities11.010.9
Long-term debt, less current maturities97.999.7
Accrued pension18.719.2
Other noncurrent liabilities6.37.5
Losses in excess of investment in FireRock, LLC (2)3.3 2.9 
Total liabilities137.2 140.2 
Commitments and contingencies
Stockholders' equity:
Preferred stock0.30.3
Common stock5.25.2
Additional paid in capital225.6225.6
Retained earnings2.13.6
Accumulated other comprehensive loss(19.9)(19.6)
Treasury stock, at cost(170.6)(170.6)
Total stockholders' equity42.7 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

(In millions of dollars)

Three Months Ended
June 30,


Six Months Ended
June 30,

2013 20122013 2012
Leased properties (1)$3.2$3.3$6.3$6.2
Lot sales (2)
Other real estate sales (2)0.2-2.9-
Other -  0.1  0.2  0.3 
Total sales6.14.513.08.2
Cost of sales and operations:
Leased properties----
Lot sales0.
Other real estate sales--2.1-
Selling, general and administrative expenses2.
Depreciation and amortization0.
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 estate2.
Forest Products -  485.8  -  485.8 
Total operating income0.9485.71.3484.4
Other income (expense):
Equity losses from joint ventures(0.5)(0.5)(0.6)(0.6)
Investment, interest and other income (expense), net1.
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


June 30,


December 31,

Preferred Stock
Par value$125.00$125.00
Liquidation value$187.50$187.50
Shares authorized10,00010,000
Shares issued2,6752,675
Shares outstanding2,6642,664
Common Stock
Par value$125.00$125.00
Shares authorized52,00052,000
Shares issued41,85341,853
Shares outstanding18,14218,179
Treasury Stock
Class A Preferred Stock1111
Common Stock23,71123,674

Emily Madison, 713-975-7600

KEYWORDS:   United States  North America  Texas


The article MAXXAM Posts Its Second Quarter 2013 and First Half 2013 Unaudited Financial Information originally appeared on

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