|
As
of December 31, 2000, the Company has classified amounts due under
the senior credit facility and the Notes as long-term based on the
subsequent financing. Aggregate maturities of long-term debt at
December 31, 2000 based upon contractual maturity schedules, adjusted
for the subsequent financing, are as follows (in thousands):
| 2001 |
$1,259
|
| 2002 |
350 |
| 2003 |
350 |
| 2004 |
350 |
| 2005 |
350 |
| Thereafter |
271,413 |
 |
|
$274,072
|
|
|
6.
Commitments and Contingencies
Leases
The Company leases certain buildings, machinery, and transportation
equipment under operating lease agreements expiring at various
dates through 2022. Certain rental payments for transportation
equipment are based on a fixed rate plus an additional amount
for mileage. Rental expense on operating leases for the years
ended December 31, 2000, 1999 and 1998 is as follows (in thousands):
|
|
2000 |
1999 |
1998 |
|
| Minimum
rentals |
$13,026
|
$11,698
|
$9,209
|
| Contingent
rentals |
347 |
377 |
326 |
|
|
$13,373
|
$12,075
|
$9,535
|
|
| The following is a schedule of future minimum rental payments
required under leases that have initial or remaining noncancelable
lease terms in excess of one year as of December 31, 2000 (in
thousands): |
| 2001 |
$12,480
|
| 2002 |
9,594 |
| 2003 |
6,291 |
| 2004 |
4,102 |
| 2005 |
3,575 |
| Thereafter |
16,283 |
|
|
$52,325
|
|
Litigation
On August 16, 2000, the Company filed suit against a significant
customer in Mecklenburg County, North Carolina, over the customer’s
refusal to continue purchasing gypsum facing paper pursuant
to the terms of a long-term supply contract between the Company
and the customer. The complaint seeks damages in excess of $100,000,000.
In October 2000, the complaint was amended to request an injunction
requiring the customer to specifically perform its obligation
under the supply contract. The specific performance claim was
dismissed in January 2001, and the case is proceeding on the
damages claim. |
|
On September 1, 2000, the customer filed a separate action in the
Superior Court of Fulton County, Georgia, seeking a declaratory
judgment in support of the customer’s interpretation of the
contract. On December 22, 2000, the action was stayed pending final
resolution of the action filed by the Company in North Carolina.
The Company intends to vigorously pursue the North Carolina action,
but can give no assurance as to the timing or outcome of the litigation.
Based on the nature of litigation generally, and the course of developments
to date, management can give no assurance that a resolution will
be reached in the near future. The Company believes that the loss
of the contract volume with the customer will continue to have a
material impact on the consolidated results of operations.
The Company is involved in certain other litigation arising in
the ordinary course of business. In the opinion of management, the
ultimate resolution of these matters will not have a material adverse
effect on the Company’s financial condition or results of operations.
7. Stock Option and Deferred Compensation
Plans
Director Equity Plan
During 1996, the Company’s board of directors approved a director
equity plan. Under the plan, directors who are not employees or
former employees of the Company (“Eligible Directors”)
are paid a portion of their fees in the Company’s common stock.
Additionally, each Eligible Director is granted an option to purchase
1,000 shares of the Company’s common stock at an option price
equal to the fair market value at the date of grant. These options
are immediately exercisable and expire ten years following the grant.
A maximum of 100,000 shares of common stock may be granted under
this plan. During 2000, 1999 and 1998, 4,171, 2,930, and 2,077 shares,
respectively, of common stock and options to purchase 6,000 shares
of common stock were issued under this plan in each year.
Incentive Stock Option and Bonus Plans
During 1992, the Company’s board of directors approved a qualified
incentive stock option and bonus plan (the “1993 Plan”),
which became effective January 1, 1993 and terminated December 31,
1997. Under the provisions of the 1993 Plan, selected members of
management received one share of common stock (“bonus share”)
for each two shares purchased at market value. In addition, the
1993 Plan provided for the issuance of options at prices not less
than market value at the date of grant. The options and bonus shares
awarded under the 1993 Plan are subject to four-year and five-year
respective vesting periods. The Company’s board of directors
authorized 1,400,000 common shares for grant under the 1993 Plan.
During 1997, the Company issued 189,215 qualified incentive stock
options under the 1993 Plan. Compensation expense of approximately
$246,000, $336,000 and $457,000 related to bonus shares was recorded
in 2000, 1999 and 1998, respectively.
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