EX-99.3 3 d88937a2ex99-3.txt UNAUDITED PRO FORMA FINANCIAL STATEMENTS 1 EXHIBIT 99.3 ITEM 7(b)1. IMPRESO, INC. AND SUBSIDIARIES PRO FORMA CONSOLIDATED BALANCE SHEET AS OF FEBRUARY 28, 2001 (Unaudited) (In Thousands)
PRO FORMA EFFECTS OF: IMPRESO, INC. SKY DIVISION HISTORICAL HISTORICAL PRO FORMA 2/28/2001 2/28/2001 ADJUSTMENTS PRO FORMA ------------- ------------- ------------- ------------- ASSETS Current assets: Cash and cash equivalents 168 (556) 556(a) 168 Trade accounts receivable, net of allowance 7,759 4,881 -- 12,640 Investments in marketable securities 11 -- -- 11 Inventories 22,643 9,740 -- 32,383 Prepaid expenses and other 701 141 -- 842 Deferred income tax assets 63 -- -- 63 ------------- ------------- ------------- ------------- Total current assets 31,345 14,206 556 46,107 ------------- ------------- ------------- ------------- Property, plant and equipment, at cost 18,800 388 1,411(a) 20,599 Less accumulated depreciation and amortization (10,263) (24) 24(a) (10,263) ------------- ------------- ------------- ------------- Net property and equipment 8,537 364 1,435 10,336 ------------- ------------- ------------- ------------- Other assets 89 -- 85(c) 174 ------------- ------------- ------------- ------------- Total assets 39,971 14,570 2,076 56,617 ============= ============= ============= ============= LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable 9,432 2,088 -- 11,520 Accrued liabilities 1,284 1,633 -- 2,917 Current maturities of long-term debt 319 -- 312(b) 631 Line of credit 10,667 -- -- 10,667 Current maturities of prepetition debt 7 -- -- 7 ------------- ------------- ------------- ------------- Total current liabilities 21,709 3,721 312(a) 25,742 Deferred income tax liability 788 -- -- 788 Long-term debt, net of current maturities 3,469 -- 12,613(b) 16,082 Long-term portion of prepetition debt, net of current maturities 249 -- -- 249 ------------- ------------- ------------- ------------- Total liabilities 26,215 3,721 12,925 42,861 ------------- ------------- ------------- ------------- Stockholders' equity: Preferred stock -- -- -- -- Common stock 53 -- -- 53 Sky's parent investment -- 10,849 (10,849)(a) -- Treasury stock (39) -- -- (39) Additional paid-in capital 6,320 -- -- 6,320 Retained earnings 7,422 -- -- 7,422 ------------- ------------- ------------- ------------- Total stockholders' equity 13,756 10,849 (10,849) 13,756 ------------- ------------- ------------- ------------- Total liabilities and stockholders' equity 39,971 14,570 2,076 56,617 ============= ============= ============= =============
The accompanying notes are an integral part of these condensed financial statements. 2 EXHIBIT 99.3 ITEM 7(b)2. IMPRESO, INC. AND SUBSIDIARIES PRO FORMA CONSOLIDATED STATEMENT OF INCOME FOR THE SIX MONTHS ENDED FEBRUARY 28, 2001 (UNAUDITED) (IN THOUSANDS)
PRO FORMA EFFECTS OF: IMPRESO, INC. SKY DIVISION HISTORICAL HISTORICAL PRO FORMA 2/28/2001 2/28/2001 ADJUSTMENTS PRO FORMA ------------- ------------- ------------- ------------- Net sales 42,540 22,090 -- 64,630 Cost of sales 37,795 18,612 -- 56,407 ------------- ------------- ------------- ------------- Gross profit 4,745 3,478 -- 8,223 ------------- ------------- ------------- ------------- Other costs and expenses: Selling, general and administrative 3,638 3,442 (74)(e) 7,006 Interest expense 730 -- 502(b) 1,242 10(c) Other income, net (94) (198) -- (292) ------------- ------------- ------------- ------------- Total other costs and expenses 4,274 3,244 512 7,956 ------------- ------------- ------------- ------------- Income (loss) before income tax expense 471 234 (512) 267 ------------- ------------- ------------- ------------- Income tax expense (benefit): Current 162 82 (174)(d) 70 Deferred 19 -- -- 19 ------------- ------------- ------------- ------------- Total income tax expense (benefit) 181 82 (174) 89 ------------- ------------- ------------- ------------- Net income (loss) $ 290 152 (338) 178 ============= ============= ============= ============= Net income (loss) per share (basic and diluted) $ 0.05 $ 0.03 ============= ============= Weighted average shares outstanding 5,284 5,284 ============= =============
The accompanying notes are an integral part of these condensed financial statements. 3 EXHIBIT 99.3 ITEM 7(b)3. IMPRESO, INC. AND SUBSIDIARIES PRO FORMA CONSOLIDATED STATEMENT OF INCOME FOR THE YEAR ENDED AUGUST 31, 2000 (UNAUDITED) (IN THOUSANDS)
PRO FORMA EFFECTS OF: IMPRESO, INC. SKY DIVISION HISTORICAL HISTORICAL PRO FORMA 8/31/2000 8/31/2000 ADJUSTMENTS PRO FORMA ------------- ------------- ------------- ------------- Net sales 74,118 40,852 -- 114,970 Cost of sales 64,625 34,695 -- 99,320 ------------- ------------- ------------- ------------- Gross profit 9,493 6,157 -- 15,650 ------------- ------------- ------------- ------------- Other costs and expenses: Selling, general and administrative 6,838 6,899 (70)(e) 13,667 Interest expense 1,304 -- 1,001(b) 2,325 20(c) Other income, net (138) (423) -- (561) ------------- ------------- ------------- ------------- Total other costs and expenses 8,004 6,476 951 15,431 ------------- ------------- ------------- ------------- Income (loss) before income tax expense 1,489 (319) (951) 219 ------------- ------------- ------------- ------------- Income tax expense (benefit): Current 534 (108) (323)(d) 103 Deferred 23 -- -- 23 ------------- ------------- ------------- ------------- Total income tax expense (benefit) 557 (108) (323) 126 ------------- ------------- ------------- ------------- Net income (loss) $ 932 (211) (628) 93 ============= ============= ============= ============= Net income (loss) per share (basic and diluted) $ 0.18 $ 0.02 Weighted average shares outstanding 5,293 5,293 ============= =============
The accompanying notes are an integral part of these condensed financial statements. 4 EXHIBIT 99.3 ITEM 7(b)4. IMPRESO, INC. NOTES TO PROFORMA CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) a) To record purchase adjustments necessary to reflect fair value of assets acquired and liabilities assumed and to eliminate equity of acquired entity. b) To record acquisition indebtedness and the related interest expense. c) To record deferred financing costs related to acquisition indebtedness and the related amortization expense. d) To adjust the provision for income taxes for the effect of the preceding pro forma adjustments. e) To eliminate intercompany expenses allocated to Sky Division by Durango Georgia Converting LLC