how much shouls Atlantic Corp pay for Royal Papers?
Exhibit 1 Atlantic Corporation Financial Performance, 1979-1983 1979 1983 $6,469 5,653 399 (5 millions) Net sales Cost of goods sold Selling general, and administrative Earnings before interest and taxes Interest Profit before tax Extraordinary loss Tax Net Income 155 Year Ended December 31 1980 1981 1982 $5,026 $5,414 $5,402 4.269 4,720 4,791 290 327 377 $ 467 $367 $ 234 105 137 362 230 79 0 0 0 119 70 27 243 160 52 $5.207 4,328 279 $ 600 93 507 0 181 326 $ 417 140 277 118 54 105 Current assets Net fixed assets Total Assets Short-term debt Accounts payable and accrued expenses Current maturities, long-term debt Long-term debt Other liabilities and deferred taxes Common equity Total $1,161 2,957 $4,118 $ 62 539 75 1,109 382 1,951 $4,118 $1.238 3.274 $4,512 $ 192 520 75 1,227 429 2.069 $4,512 $1.417 3.643 $5,060 $ 257 552 85 1,487 475 2,204 $5,060 $1,449 3,701 $5,150 $ 167 568 95 1,618 480 2,222 $5,150 $1,516 3,463 $4.979 $ 10 627 95 1,523 482 2.242 $4,979 % of Sales Cost of goods sold Selling, general, and administrative Current assets Net fixed assets Accounts payable and accrued expenses Tax as percent profit before tax 83.1% 5.4 22.3 56.B 10.4 36% 84.9% 5.8 24.6 65.1 10.4 33% 87.2% 6.0 26.2 67.3 10.2 30% 88.7% 7.0 26.8 68.5 10.5 34% 87.4% 6.2 23.4 53.4 9.7 34% $3.10 1.20 $.98 $2.34 1.20 $1.54 1.20 $.49 1.05 80 Per-share Data Earnings per share Dividends per share Market price: High Low Average Book value per share Number of shares (millions) Equity beta Average market price + eps Average market price + book $30 23 27 19 105 & $35 21 28 20 104 $32 18 25 21 104 $27 13 20 21 107 $32 22 27 21 107 1.35 27.6 1.3 8.7 1.4 12.0 1.4 16.2 1.2 40.8 .95 Leverage Ratios Debt as % of book capital Debt as % of market capital Times interest earned 39 29 6.5 42 32 4.4 48 40 2.7 47 45 1.5 42 35 3.0 BBB Bond rating Exhibit 4 Financial Forecasts for Atlantic Corporation ($ in millions) Atlantic Corporation-Abridged Actual 1983 1984 Forecasts 1985 1986 1987 $6,469 5,653 399 $417 $6,857 5.993 425 $439 $7,269 6,251 436 $582 $7.705 6,626 462 $617 $8,167 6.942 490 $735 132 124 116 10B 140 0 $277 118 54 $105 86 $307 0 111 $196 a $458 0 165 $501 0 180 $321 Sales (6% p.a. growth) Cost of goods sold Selling, general, and administrative Earnings before interest and taxes Interest: Existing debt New debt Profit before tax Extraordinary loss Taxes at 36% Net income Dividends % of Sales Cost of goods sold Selling, general, and administrative Assets Current assets Net fixed assets Total assets Liabilities and Net Worth $627 0 226 $401 a $293 a 87.4 6.2 87.4 6.2 86 6.0 86 6.0 85 6.0 $1,516 3,463 $4,979 $1,577 3,566 $5,143 $1,672 3,707 $5,379 $1,772 3,930 $5,702 $1,878 4,165 $6,043 $10 627 95 $0 686 95 SO 727 95 Short-term loans Accounts payable and accruals Current maturities, long-term debt Total current Other liabilities Long-term debt Common equity Financing shortfall Total $732 482 1,523 2,242 0 $781 500 1,428 a $822 530 1,333 a a $5,379 SO 771 95 $866 563 1,238 a a $5,702 $0 817 95 $912 600 1,143 a a $4.979 $5,143 $6,043 % of Sales Current assets Net fixed assets Accounts payable and accruals Other liabilities 23 53 10 7 23 52 10 7 23 51 10 7 23 51 10 7 23 51 10 7 Note: Forecasts do not include the assets that Atlantic may purchase from Royal Paper. 297-015 Atlantic Corporation-Abridged Exhibit 5 Atlantic Corporation Capital Markets Data L. Corporate Bonds AA A BBB AAA Bond Ylelds, as of April 9, 1984 U.S. Government U.S. Government T-Bills 30-Year Bonds 7.53% 8.49% 10.05% 9.46% 8.73% 8.99% A BBB AAA AA 18% 25% 9.7 30% 5.4 40% 4.1 14.1 II. Bond Ratings in 1984 Industrials: Debt % total book capital Times interest eamed Forest Products and Paper: Debt % total book capital Times interest earned 32% 8.0 38% 4.4 40% 3.6 April 1984 1979 1980 1981 1982 1983 $9.05 $1.35 III. Value Line Industrial Composite Market price EPS DPS Book value Price/Earnings MarketBook $9.91 $1.18 .45 $7.82 8.4 1.3 $10.83 $1.19 .48 $8.51 9.1 1.3 $9.89 $13.45 $.97 $1.14 .48 .49 $8.75 $9.23 10.2 11.8 1.1 1.5 $13.10 $1.38E .53E $9.38 9.5 1.4 $7.64 6.7 1.2 Composite of 780 major industrial companies. The Royal Paper Package: Mill, Box Plants, and Timberland Paper's paper operations The assets Halloran sought to buy from Winters comprised an integrated system in Royal (1) The Monticello, Mississippi mill Completed in 1968, the $121 million "state-of-the-art" mill produced both linerboard and kraft paper. (Kraft paper is used to manufacture grocery bags.) In December 1983, Winters announced a "master plan to modernize the Monticello Mill," which called for Royal to spend $70-880 million over 20-22 months to convert all of the mill's kraft capacity to linerboard capacity. This move would increase the mill's linerboard capacity from 661,000 tons annually to 747,000 tons per year (or 2,134 daily tons) that would be purchased from Royal Paper as part of the transaction. Part of the output would be transformed into corrugated boxes in the 16 box plants. The rest of the mill's output would be used by Atlantic Corporation's own box plants. As of April 1984, the conversion process had not yet started. (2) Corrugated box plants Box plants were generally located near end users due to the relatively high cost of shipping. Royal Paper's 16 corrugated box plants were almost ideally suited for a combination with Atlantic's plants. Atlantic's box plants were located in the West, South, and Midwest; while the Royal Paper plants were in the South, Midwest, and East. Together, the box plants would cover most major U.S. markets. Exhibit 3 shows estimates prepared by Atlantic's staff for both the Monticello mill and the 16 corrugated box plants. The forecasts are based on capital expenditures totaling $140.8 million to convert all of the mill's kraft capacity to linerboard capacity, to improve efficiency in the box plants, and to maintain the facilities (see Table A). It was anticipated that the mill and the box plants would have a 15-year economic life (through 1998), at which time management would decide whether or not to maintain the operation by investing in new capacity to replace the mill and box plants. No salvage value was expected to be obtained at the end of their lives. Table A Planned Capital Expenditures-Monticello Mill and Box Plants ( in millions) 1985 1986 1987 1984 1988 1989 1990 1991 1992 1993 $30.5 $41.7 $19.2 $10.2 $10.2 $82 $6.2 $6.2 $4.2 $4.2 The depreciation expense shown in Exhibit 3 includes depreciation of the capital apenditures forecast found 94: 1938. as well depreciatie helf the existing milk and box, plane Binancial reporting basis of the Monticello mill and the 16 box plants would be "stepped up to reflect educts that Atlantic would purchase Atlantic's finance staff believed that the tax basis and the the king capital that would be transferred with the mill and box plants to Atlantic. Exhibit 3 assumes total purchase price of $319 million, of which $270 million is assigned to the mill and box plants and 319 million is assigned to the net working capital. (See Table B for a breakdown and forecast of the net working capital required to support the operations of the Monticello mill and the box plants.) Table B Net Working CapitalMonticello Mill and Box Plants (S in millions) Actual 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 Accounts receivable $32 $38 $48 $55 $58 $61 $64 $67 $70 $74 $77 Inventories 31 37 47 53 56 59 62 65 68 71 75 14 17 21 24 25 27 28 29 31 32 34 Accounts payable Networking capital $49 $58 $74 584 $89 $93 $98 $103 $107 $113 $118 Royal Paper Corporation From 1974 to 1981, Royal Paper's sales and net profits grew consistently 8% to 9% each year, but an industry downturn in 1982 and 1983 didn't leave Royal Paper unscathed. Sales and profits fell, and in 1982, Royal Paper stock price plummeted to a price lower than at any other time in the past 15 years. This downturn was precipitated by weakening of most of Royal Paper's major forest product/paper markets, offset in part by the stable performance of its printing papers division. In response, Royal Paper management cut its workforce by 10% and divested itself of over a dozen money-losing mills. By the end of 1983, Royal Paper stock had climbed back to prices in the mid-30 dollar range, and in a presentation to securities analysts, Winters stressed the company's strong product lines, its capital investment plans including conversion of the Monticello Mill to 100% linerboard production, and its generally upbeat prospects as it looked forward to "participating in the present economic recovery." Steven Winters' sudden interest on April 18th in discussing the sale of the Monticello Mill package to Atlantic Corporation seemed linked to his besieged firm's recent dealings with significant Shareholders. Early 1984 had proved to be a difficult period for Royal Paper. While the company was recovering from an industry wide slump, Winters found himself in an uncomfortable position as Prominent investors accumulated large blocks of Royal Paper stock and threatened to take over the firm Exhibit 3 Financial Projections Prepared by Atlantic Corporation Staff for the Monticello Mill and Box Plants (assumes a purchase price of $319 million for the mill and box plants) 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 747 661 95% 628 $320 $201.0 160.3 $40.7 699 93% 650 $360 $234.0 176.1 $57.9 747 93% 695 $400 $277.9 1942 $83.7 747 95% 710 $410 $291.1 211.3 $79.8 710 $430 $3053 747 95% 710 $452 $320.9 232.7 $ 88.2 747 95% 710 $475 $337.3 2442 $93.1 747 96% 710 $1198 $3536 256.4 $972 747 95% 710 $523 $3713 2692 $102.1 747 95% 710 $549 $389.B 2828 $107.0 $83.8 Monticello Mill Annual capacity (000 tons) Utilization rate Production rate (000 tons) Price per ton Mill sales ($ millions) Cash costs ($ millions) Operating profit before depreciation and taxes Box Plants ($ millions) Operating profit before depreciation and taxes Combined Mill and Plants ($ millions) Operating profit before depreciation and taxes Depreciation expense EBIT Tax @ 36% EBIAT $14.8 $17.1 $18.0 $16.3 $21.8 $11.6 $18.9 $19.8 $22.9 $20.8 $06.0 $101.8 $118.0 $123.9 203 $52.3 20.9 31.4 11.3 27 $72.7 28.3 444 16.0 $28.4 $100.0 350 65.0 57.6 20.7 $36.9 $107.1 393 67.8 24.4 $434 60.5 21.8 $38.7 $112.9 13 78.6 28.3 $50.3 $1299 253 104.5 376 $57.0 00.9 32.7 $58.2 35.1 $62,5 $20.1 $41.6 Assumes conversion of kraft capacity to linerboard. Inflation of 5% per year is incorporated in the forecasts. Assumes that $270 million of the $319 million purchase price is assigned to the plants and equipment for both tax and financial reporting purposes. The remaining 10 million is assigned to not working capital. Atlantic Corporation planned to use the same depreciation methods for tax and financial reporting. At year-end 1983, the book value the Monticello Mil and the box plants would be $3.7 million. (See below for year-end book values.) 1992 1991 1993 1990 1909 1987 1986 1985 1983 1984 1988 $2170 $136.9 $114.8 $937 $157.8 $185.9 $248.1 $270.5 $268.3 $2772 $270.0 Exhibit 6 (continued) International Paper 1980 1981 1982 Royal Paper 1981 1979 1983 1979 1980 1982 1983 4,533 525 10.96 2.40 2.775 55 5,043 314 5.97 2.40 4.983 525 1.25 2.40 4,015 161 2.72 2.40 4,357 131 2.46 2.40 $67 2,498 164 4.76 2.713 177 5.12 2.03 2,819 177 5.12 2.15 2,556 45 1.29 1.68 1.40 1.83 1.12 $22 48 36 42 48 31 39 52 37 44 52 33 42 60 46 53 35 27 31 37 25 31 43 29 36 18 25 37 24 30 Sales ($ millions) Net income ($ millions) EPS DPS Book value per share Stock Price: High Low Average Capitalization at Book % debt % Common Capitalization at Market debt % common Bond rating Equity beta Linerboard capacity Linerboard sales (5 milions) 21 37 37 29 71 25 75 23 77 22 78 31 69 40 60 34 66 34 66 32 68 27 73 31 69 36 64 44 56 41 59 53 47 40 60 25 75 ANA 1.15 BB 1.25 503 $163 $412 In thousands of tons. Exhibit 1 Atlantic Corporation Financial Performance, 1979-1983 1979 1983 $6,469 5,653 399 (5 millions) Net sales Cost of goods sold Selling general, and administrative Earnings before interest and taxes Interest Profit before tax Extraordinary loss Tax Net Income 155 Year Ended December 31 1980 1981 1982 $5,026 $5,414 $5,402 4.269 4,720 4,791 290 327 377 $ 467 $367 $ 234 105 137 362 230 79 0 0 0 119 70 27 243 160 52 $5.207 4,328 279 $ 600 93 507 0 181 326 $ 417 140 277 118 54 105 Current assets Net fixed assets Total Assets Short-term debt Accounts payable and accrued expenses Current maturities, long-term debt Long-term debt Other liabilities and deferred taxes Common equity Total $1,161 2,957 $4,118 $ 62 539 75 1,109 382 1,951 $4,118 $1.238 3.274 $4,512 $ 192 520 75 1,227 429 2.069 $4,512 $1.417 3.643 $5,060 $ 257 552 85 1,487 475 2,204 $5,060 $1,449 3,701 $5,150 $ 167 568 95 1,618 480 2,222 $5,150 $1,516 3,463 $4.979 $ 10 627 95 1,523 482 2.242 $4,979 % of Sales Cost of goods sold Selling, general, and administrative Current assets Net fixed assets Accounts payable and accrued expenses Tax as percent profit before tax 83.1% 5.4 22.3 56.B 10.4 36% 84.9% 5.8 24.6 65.1 10.4 33% 87.2% 6.0 26.2 67.3 10.2 30% 88.7% 7.0 26.8 68.5 10.5 34% 87.4% 6.2 23.4 53.4 9.7 34% $3.10 1.20 $.98 $2.34 1.20 $1.54 1.20 $.49 1.05 80 Per-share Data Earnings per share Dividends per share Market price: High Low Average Book value per share Number of shares (millions) Equity beta Average market price + eps Average market price + book $30 23 27 19 105 & $35 21 28 20 104 $32 18 25 21 104 $27 13 20 21 107 $32 22 27 21 107 1.35 27.6 1.3 8.7 1.4 12.0 1.4 16.2 1.2 40.8 .95 Leverage Ratios Debt as % of book capital Debt as % of market capital Times interest earned 39 29 6.5 42 32 4.4 48 40 2.7 47 45 1.5 42 35 3.0 BBB Bond rating Exhibit 4 Financial Forecasts for Atlantic Corporation ($ in millions) Atlantic Corporation-Abridged Actual 1983 1984 Forecasts 1985 1986 1987 $6,469 5,653 399 $417 $6,857 5.993 425 $439 $7,269 6,251 436 $582 $7.705 6,626 462 $617 $8,167 6.942 490 $735 132 124 116 10B 140 0 $277 118 54 $105 86 $307 0 111 $196 a $458 0 165 $501 0 180 $321 Sales (6% p.a. growth) Cost of goods sold Selling, general, and administrative Earnings before interest and taxes Interest: Existing debt New debt Profit before tax Extraordinary loss Taxes at 36% Net income Dividends % of Sales Cost of goods sold Selling, general, and administrative Assets Current assets Net fixed assets Total assets Liabilities and Net Worth $627 0 226 $401 a $293 a 87.4 6.2 87.4 6.2 86 6.0 86 6.0 85 6.0 $1,516 3,463 $4,979 $1,577 3,566 $5,143 $1,672 3,707 $5,379 $1,772 3,930 $5,702 $1,878 4,165 $6,043 $10 627 95 $0 686 95 SO 727 95 Short-term loans Accounts payable and accruals Current maturities, long-term debt Total current Other liabilities Long-term debt Common equity Financing shortfall Total $732 482 1,523 2,242 0 $781 500 1,428 a $822 530 1,333 a a $5,379 SO 771 95 $866 563 1,238 a a $5,702 $0 817 95 $912 600 1,143 a a $4.979 $5,143 $6,043 % of Sales Current assets Net fixed assets Accounts payable and accruals Other liabilities 23 53 10 7 23 52 10 7 23 51 10 7 23 51 10 7 23 51 10 7 Note: Forecasts do not include the assets that Atlantic may purchase from Royal Paper. 297-015 Atlantic Corporation-Abridged Exhibit 5 Atlantic Corporation Capital Markets Data L. Corporate Bonds AA A BBB AAA Bond Ylelds, as of April 9, 1984 U.S. Government U.S. Government T-Bills 30-Year Bonds 7.53% 8.49% 10.05% 9.46% 8.73% 8.99% A BBB AAA AA 18% 25% 9.7 30% 5.4 40% 4.1 14.1 II. Bond Ratings in 1984 Industrials: Debt % total book capital Times interest eamed Forest Products and Paper: Debt % total book capital Times interest earned 32% 8.0 38% 4.4 40% 3.6 April 1984 1979 1980 1981 1982 1983 $9.05 $1.35 III. Value Line Industrial Composite Market price EPS DPS Book value Price/Earnings MarketBook $9.91 $1.18 .45 $7.82 8.4 1.3 $10.83 $1.19 .48 $8.51 9.1 1.3 $9.89 $13.45 $.97 $1.14 .48 .49 $8.75 $9.23 10.2 11.8 1.1 1.5 $13.10 $1.38E .53E $9.38 9.5 1.4 $7.64 6.7 1.2 Composite of 780 major industrial companies. The Royal Paper Package: Mill, Box Plants, and Timberland Paper's paper operations The assets Halloran sought to buy from Winters comprised an integrated system in Royal (1) The Monticello, Mississippi mill Completed in 1968, the $121 million "state-of-the-art" mill produced both linerboard and kraft paper. (Kraft paper is used to manufacture grocery bags.) In December 1983, Winters announced a "master plan to modernize the Monticello Mill," which called for Royal to spend $70-880 million over 20-22 months to convert all of the mill's kraft capacity to linerboard capacity. This move would increase the mill's linerboard capacity from 661,000 tons annually to 747,000 tons per year (or 2,134 daily tons) that would be purchased from Royal Paper as part of the transaction. Part of the output would be transformed into corrugated boxes in the 16 box plants. The rest of the mill's output would be used by Atlantic Corporation's own box plants. As of April 1984, the conversion process had not yet started. (2) Corrugated box plants Box plants were generally located near end users due to the relatively high cost of shipping. Royal Paper's 16 corrugated box plants were almost ideally suited for a combination with Atlantic's plants. Atlantic's box plants were located in the West, South, and Midwest; while the Royal Paper plants were in the South, Midwest, and East. Together, the box plants would cover most major U.S. markets. Exhibit 3 shows estimates prepared by Atlantic's staff for both the Monticello mill and the 16 corrugated box plants. The forecasts are based on capital expenditures totaling $140.8 million to convert all of the mill's kraft capacity to linerboard capacity, to improve efficiency in the box plants, and to maintain the facilities (see Table A). It was anticipated that the mill and the box plants would have a 15-year economic life (through 1998), at which time management would decide whether or not to maintain the operation by investing in new capacity to replace the mill and box plants. No salvage value was expected to be obtained at the end of their lives. Table A Planned Capital Expenditures-Monticello Mill and Box Plants ( in millions) 1985 1986 1987 1984 1988 1989 1990 1991 1992 1993 $30.5 $41.7 $19.2 $10.2 $10.2 $82 $6.2 $6.2 $4.2 $4.2 The depreciation expense shown in Exhibit 3 includes depreciation of the capital apenditures forecast found 94: 1938. as well depreciatie helf the existing milk and box, plane Binancial reporting basis of the Monticello mill and the 16 box plants would be "stepped up to reflect educts that Atlantic would purchase Atlantic's finance staff believed that the tax basis and the the king capital that would be transferred with the mill and box plants to Atlantic. Exhibit 3 assumes total purchase price of $319 million, of which $270 million is assigned to the mill and box plants and 319 million is assigned to the net working capital. (See Table B for a breakdown and forecast of the net working capital required to support the operations of the Monticello mill and the box plants.) Table B Net Working CapitalMonticello Mill and Box Plants (S in millions) Actual 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 Accounts receivable $32 $38 $48 $55 $58 $61 $64 $67 $70 $74 $77 Inventories 31 37 47 53 56 59 62 65 68 71 75 14 17 21 24 25 27 28 29 31 32 34 Accounts payable Networking capital $49 $58 $74 584 $89 $93 $98 $103 $107 $113 $118 Royal Paper Corporation From 1974 to 1981, Royal Paper's sales and net profits grew consistently 8% to 9% each year, but an industry downturn in 1982 and 1983 didn't leave Royal Paper unscathed. Sales and profits fell, and in 1982, Royal Paper stock price plummeted to a price lower than at any other time in the past 15 years. This downturn was precipitated by weakening of most of Royal Paper's major forest product/paper markets, offset in part by the stable performance of its printing papers division. In response, Royal Paper management cut its workforce by 10% and divested itself of over a dozen money-losing mills. By the end of 1983, Royal Paper stock had climbed back to prices in the mid-30 dollar range, and in a presentation to securities analysts, Winters stressed the company's strong product lines, its capital investment plans including conversion of the Monticello Mill to 100% linerboard production, and its generally upbeat prospects as it looked forward to "participating in the present economic recovery." Steven Winters' sudden interest on April 18th in discussing the sale of the Monticello Mill package to Atlantic Corporation seemed linked to his besieged firm's recent dealings with significant Shareholders. Early 1984 had proved to be a difficult period for Royal Paper. While the company was recovering from an industry wide slump, Winters found himself in an uncomfortable position as Prominent investors accumulated large blocks of Royal Paper stock and threatened to take over the firm Exhibit 3 Financial Projections Prepared by Atlantic Corporation Staff for the Monticello Mill and Box Plants (assumes a purchase price of $319 million for the mill and box plants) 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 747 661 95% 628 $320 $201.0 160.3 $40.7 699 93% 650 $360 $234.0 176.1 $57.9 747 93% 695 $400 $277.9 1942 $83.7 747 95% 710 $410 $291.1 211.3 $79.8 710 $430 $3053 747 95% 710 $452 $320.9 232.7 $ 88.2 747 95% 710 $475 $337.3 2442 $93.1 747 96% 710 $1198 $3536 256.4 $972 747 95% 710 $523 $3713 2692 $102.1 747 95% 710 $549 $389.B 2828 $107.0 $83.8 Monticello Mill Annual capacity (000 tons) Utilization rate Production rate (000 tons) Price per ton Mill sales ($ millions) Cash costs ($ millions) Operating profit before depreciation and taxes Box Plants ($ millions) Operating profit before depreciation and taxes Combined Mill and Plants ($ millions) Operating profit before depreciation and taxes Depreciation expense EBIT Tax @ 36% EBIAT $14.8 $17.1 $18.0 $16.3 $21.8 $11.6 $18.9 $19.8 $22.9 $20.8 $06.0 $101.8 $118.0 $123.9 203 $52.3 20.9 31.4 11.3 27 $72.7 28.3 444 16.0 $28.4 $100.0 350 65.0 57.6 20.7 $36.9 $107.1 393 67.8 24.4 $434 60.5 21.8 $38.7 $112.9 13 78.6 28.3 $50.3 $1299 253 104.5 376 $57.0 00.9 32.7 $58.2 35.1 $62,5 $20.1 $41.6 Assumes conversion of kraft capacity to linerboard. Inflation of 5% per year is incorporated in the forecasts. Assumes that $270 million of the $319 million purchase price is assigned to the plants and equipment for both tax and financial reporting purposes. The remaining 10 million is assigned to not working capital. Atlantic Corporation planned to use the same depreciation methods for tax and financial reporting. At year-end 1983, the book value the Monticello Mil and the box plants would be $3.7 million. (See below for year-end book values.) 1992 1991 1993 1990 1909 1987 1986 1985 1983 1984 1988 $2170 $136.9 $114.8 $937 $157.8 $185.9 $248.1 $270.5 $268.3 $2772 $270.0 Exhibit 6 (continued) International Paper 1980 1981 1982 Royal Paper 1981 1979 1983 1979 1980 1982 1983 4,533 525 10.96 2.40 2.775 55 5,043 314 5.97 2.40 4.983 525 1.25 2.40 4,015 161 2.72 2.40 4,357 131 2.46 2.40 $67 2,498 164 4.76 2.713 177 5.12 2.03 2,819 177 5.12 2.15 2,556 45 1.29 1.68 1.40 1.83 1.12 $22 48 36 42 48 31 39 52 37 44 52 33 42 60 46 53 35 27 31 37 25 31 43 29 36 18 25 37 24 30 Sales ($ millions) Net income ($ millions) EPS DPS Book value per share Stock Price: High Low Average Capitalization at Book % debt % Common Capitalization at Market debt % common Bond rating Equity beta Linerboard capacity Linerboard sales (5 milions) 21 37 37 29 71 25 75 23 77 22 78 31 69 40 60 34 66 34 66 32 68 27 73 31 69 36 64 44 56 41 59 53 47 40 60 25 75 ANA 1.15 BB 1.25 503 $163 $412 In thousands of tons
