EX-99 2 exhibit99b.htm EXHIBIT 99B PRO FORMA FINANCIAL STATEMENTS Exhibit 99 (b)

Exhibit 99 (b)


BLUE RIDGE REAL ESTATE COMPANY and SUBSIDIARIES

AND

BIG BOULDER CORPORATION and SUBSIDIARIES

COMBINED BALANCE SHEETS

"Pro Forma on Sale of Dreshertown Shopping Plaza"

UNAUDITED



   

10/31/03

  

Pro Forma

Pro Forma

ASSETS

10/31/03

Adjustments

Results

Current Assets:

   

   Cash and cash equivalents
     (all funds are interest bearing)

$178,315

 

$178,315

   Accounts receivable and notes
    receivable

705,408

13,557

718,965

   Inventories

295,828

 

295,828

   Prepaid expenses and other
     current assets

822,537

(130,737)

691,800

   Deferred operating costs

2,509,778

 

2,509,778

      Total current assets

4,511,866

(117,180)

4,394,686

Cash held in escrow

309,308

8,043,887

8,353,195

Notes receivable noncurrent

353,238

0

353,238

Properties:

   

   Land held for investment,
    principally unimproved (14,389

   

     acres per land ledger)

1,791,594

 

1,791,594

   Land and land development
     costs(5,124 acres per land
     ledger)

918,860

 

918,860

   Land improvements, buildings and
    equipment

53,309,527

(5,566,382)

47,743,145

 

56,019,981

(5,566,382)

50,453,599

   Less accumulated depreciation and amortization

35,944,275

(3,139,015)

32,805,260

 

20,075,706

(2,427,368)

17,648,338

   Assets held for sale

2,710,292

0

2,710,292

 

$27,960,410

$5,499,340

$33,459,750














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BLUE RIDGE REAL ESTATE COMPANY and SUBSIDIARIES

AND

BIG BOULDER CORPORATION and SUBSIDIARIES

COMBINED BALANCE SHEETS (Continued)

"Pro Forma on Sale of Dreshertown Shopping Plaza"

UNAUDITED


   

10/31/03

  

Pro Forma

Pro Forma

LIABILITIES AND SHAREHOLDERS' EQUITY

10/31/03

Adjustments

Results

Current Liabilities:

   

   Notes payable - line of credit

$1,188,000

 

$1,188,000

   Current installments of long-term debt and capital lease obligations

7,101,661

(6,193,000)

908,661

   Accounts and other payables

979,509

 

979,509

   Accrued claims

250,942

 

250,942

   Deferred revenue

737,533

 

737,533

   Accrued pension expense

733,710

 

733,710

   Accrued liabilities

824,998

(279,132)

545,866

   Deferred income taxes

832,000

 

832,000

      Total current liabilities

12,648,353

(6,472,132)

6,176,221

Long-term debt and capital lease
   obligations, less current
  installments

3,889,095

 

3,889,095

Deferred income non-current

515,631

 

515,631

Other non-current liabilities

12,572

 

12,572

Deferred income taxes

1,371,000

5,366,774

6,737,774

Commitments and contingencies

   

Combined shareholders' equity:

   

      Capital stock, without par
       value, stated value $.30 per

   

       combined share, Blue Ridge
       and Big Boulder each

   

       authorized 3,000,000 shares,
      each issued 2,198,148 shares

659,444

 

659,444

     Capital in excess of stated
       value

1,461,748

 

1,461,748

     Compensation recognized under
       employee stock plans

200,900

 

200,900

     Earnings retained in the
       business

9,287,074

6,604,698

15,891,772

 

11,609,166

6,604,698

18,213,864

    

   Less cost of 282,018 shares of
   capital stock in treasury as of
   October 31, 2003.

2,085,407

 

2,085,407

 

9,523,759

6,604,698

16,128,457

 

$27,960,410

$5,499,340

$33,459,750







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2


BLUE RIDGE REAL ESTATE COMPANY and SUBSIDIARIES

AND

BIG BOULDER CORPORATION and SUBSIDIARIES

COMBINED STATEMENTS OF OPERATIONS AND EARNINGS RETAINED IN THE BUSINESS

"Pro Forma on Sale of Dreshertown Shopping Plaza"

UNAUDITED

    

10/31/03

  

Pro Forma

 

Pro Forma

 

10/31/03

Adjustments

 

Results

Revenues:

    

   Ski operations

$10,269,984

  

$10,269,984

   Real estate management

3,129,394

  

3,129,394

   Summer recreation operations

1,876,724

  

1,876,724

   Land resource management

2,620,907

  

2,620,907

   Rental income

1,964,609

(1,696,222)

A

268,387

 

19,861,618

(1,696,222)

 

18,165,396

Costs and expenses:

    

   Ski operations

10,669,427

  

10,669,427

   Real estate management

2,750,152

  

2,750,152

   Summer recreation operations

1,738,786

  

1,738,786

   Land resource management

585,137

  

585,137

   Rental income

3,256,216

(2,921,277)

B

334,939

   General and administration

1,055,746

  

1,055,746

 

20,055,464

(2,921,277)

 

17,134,187

    (Loss) income from
    operations

(193,846)

1,225,055

 

1,031,209

     

Other income (expense):

    

   Interest and other income

22,475

12,026,867

C

12,049,342

   Interest expense

(424,766)

165,012

D

(259,754)

 

(402,291)

12,191,879

 

11,789,588

     

(Loss) income before income taxes

(596,137)

13,416,934

 

12,820,797

     

Provision (credit) for income taxes:

    

       Current

(14,000)

  

(14,000)

       Deferred

297,000

5,366,774

E

5,663,774

 

283,000

5,366,774

 

5,649,774

     

Net (loss) income

(879,137)

8,050,160

 

7,171,023

     

Earnings retained in business

    

       Beginning of year

10,166,211

  

10,166,211

       End of year

$9,287,074

  

$17,337,234

     

Basic (loss) earnings per weighted average combined share based on 1,916,130 shares outstanding:

($0.45)

  

$3.75

Diluted (loss) earnings per weighted average Combined share based on 1,935,244 shares outstanding:

($0.45)

  

$3.71


Notes to unaudited Pro forma combined statement of operations and Earnings retained in the business:


(A) Entry represents reduction in revenue assuming Dreshertown sale occurred November 1, 2002.

(B) Entry represents reduction in expenses and expenses related to the sale assuming the transaction occurred November 1, 2002.

(C) Entry represents pretax gain on the sale of the asset.

(D) Entry represents the reduction in interest expense assuming the sale occurred November 1, 2002.

(E) Entry represents the deferred tax provision calculated at the effective income tax rate of 40%.


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3



BLUE RIDGE REAL ESTATE COMPANY and SUBSIDIARIES

AND

BIG BOULDER CORPORATION and SUBSIDIARIES

COMBINED BALANCE SHEETS

"Pro Forma on Sale of Dreshertown Shopping Plaza"

UNAUDITED



   

1/31/04

  

Pro Forma

Pro Forma

ASSETS

1/31/04

Adjustments

Results

Current Assets:

   

   Cash and cash equivalents
     (all funds are interest bearing)

$274,487

 

$274,487

   Accounts receivable and notes
    receivable

746,630

13,557

760,187

   Inventories

259,869

 

259,869

   Prepaid expenses and other
     current assets

874,581

(130,737)

743,844

   Deferred operating costs

1,329,799

 

1,329,799

      Total current assets

3,485,366

(117,180)

3,368,186

Cash held in escrow

526,039

8,043,887

8,569,926

Notes receivable noncurrent

403,606

0

403,606

Properties:

   

   Land held for investment,
    principally unimproved (14,389

   

     acres per land ledger)

1,966,306

 

1,966,306

   Land and land development
     costs(5,124 acres per land
     ledger)

1,330,733

 

1,330,733

   Land improvements, buildings and
    equipment

53,938,803

(5,566,382)

48,372,421

 

57,235,842

(5,566,382)

51,669,460

   Less accumulated depreciation and amortization

36,296,177

(3,139,015)

33,157,162

 

20,939,665

(2,427,368)

18,512,297

   Assets held for sale

2,710,292

0

2,710,292

 

$28,064,968

$5,499,340

$33,564,308

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4



BLUE RIDGE REAL ESTATE COMPANY and SUBSIDIARIES

AND

BIG BOULDER CORPORATION and SUBSIDIARIES

COMBINED BALANCE SHEETS (Continued)

"Pro Forma on Sale of Dreshertown Shopping Plaza"

UNAUDITED


   

1/31/04

  

Pro Forma

Pro Forma

LIABILITIES AND SHAREHOLDERS' EQUITY

1/31/04

Adjustments

Results

Current Liabilities:

   

   Notes payable - line of credit

$786,000

 

$786,000

   Current installments of long-term debt and capital lease obligations

7,099,819

(6,193,000)

906,819

   Accounts and other payables

1,038,525

 

1,038,525

   Accrued claims

226,942

 

226,942

   Deferred revenue

699,205

 

699,205

   Accrued pension expense

795,705

 

795,705

   Accrued liabilities

1,022,223

(279,132)

743,091

   Deferred income taxes

917,000

 

917,000

      Total current liabilities

12,585,419

(6,472,132)

6,113,287

Long-term debt and capital lease
   obligations, less current
  installments

3,925,373

 

3,925,373

Deferred income non-current

515,631

 

515,631

Other non-current liabilities

16,770

 

16,770

Deferred income taxes

1,371,000

4,715,499

6,086,499

Commitments and contingencies

   

Combined shareholders' equity:

   

      Capital stock, without par
       value, stated value $.30 per

   

       combined share, Blue Ridge
       and Big Boulder each

   

       authorized 3,000,000 shares,
      each issued 2,198,148 shares

659,444

 

659,444

     Capital in excess of stated
       value

1,461,748

 

1,461,748

     Compensation recognized under
       employee stock plans

200,900

 

200,900

     Earnings retained in the
       business

9,414,090

7,255,973

16,670,063

 

11,736,182

7,255,973

18,992,155

    

   Less cost of 282,018 shares of
   capital stock in treasury as of
   January 31, 2004.

2,085,407

 

2,085,407

 

9,650,775

7,255,973

16,906,748

 

$28,064,968

$5,499,340

$33,564,308






<PAGE>

5



BLUE RIDGE REAL ESTATE COMPANY and SUBSIDIARIES

AND

BIG BOULDER CORPORATION and SUBSIDIARIES

COMBINED STATEMENTS OF OPERATIONS AND EARNINGS RETAINED IN THE BUSINESS

"Pro Forma on Sale of Dreshertown Shopping Plaza"

UNAUDITED

    

1/31/04

  

Pro Forma

 

Pro Forma

 

1/31/04

Adjustments

 

Results

Revenues:

    

   Ski operations

4,907,632

  

4,907,632

   Real estate management

884,228

  

884,228

   Summer recreation operations

104,752

  

104,752

   Land resource management

667,876

  

667,876

   Rental income

493,403

(460,527)

A

32,876

 

7,057,891

(460,527)

 

6,597,364

Costs and expenses:

    

   Ski operations

5,105,414

  

5,105,414

   Real estate management

814,088

  

814,088

   Summer recreation operations

181,897

  

181,897

   Land resource management

116,302

  

116,302

   Rental income

264,359

(172,678)

B

91,681

   General and administration

207,811

  

207,811

 

6,689,791

(172,678)

 

6,517,113

    (Loss) income from
    operations

368,100

(287,849)

 

80,251

     

Other income (expense):

    

   Interest and other income

1,624

12,026,867

C

12,028,491

   Interest expense

(157,708)

49,728

D

(107,980)

 

(156,084)

12,076,595

 

11,920,511

     

(Loss) income before income taxes

212,016

11,788,747

 

12,000,763

     

Provision (credit) for income taxes:

    

       Current

85,000

  

85,000

       Deferred

 

4,715,499

E

4,715,499

 

85,000

4,715,499

 

4,800,499

     

Net (loss) income

127,016

7,073,248

 

7,200,264

     

Earnings retained in business

    

       Beginning of year

9,287,074

  

9,287,074

       End of year

$9,414,090

  

$16,487,338

     

Basic (loss) earnings per weighted average combined share based on 1,916,130 shares outstanding:

$0.07

  

$3.76

Diluted (loss) earnings per weighted average Combined share based on 1,941,656 shares outstanding:

$0.07

  

$3.71


Notes to unaudited Pro forma combined statement of operations and Earnings retained in the business:


(A) Entry represents reduction in revenue assuming Dreshertown sale occurred November 1, 2003.

(B) Entry represents reduction in expenses and expenses related to the sale assuming the transaction occurred November 1, 2003.

(C) Entry represents pretax gain on the sale of the asset.

(D) Entry represents the reduction in interest expense assuming the sale occurred November 1, 2003.

(E) Entry represents the deferred tax provision calculated at the effective income tax rate of 40%.



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6