-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, ri5Q75NN4v8diNenLpi6FGprYaHdKgwmIntvstdGOAHAcRwAw9p7XIdjGePkrfY+ SOTWwaZJUMmQjk12x/yBAw== 0000908634-95-000026.txt : 19950607 0000908634-95-000026.hdr.sgml : 19950607 ACCESSION NUMBER: 0000908634-95-000026 CONFORMED SUBMISSION TYPE: 8-K/A PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19930430 ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19950606 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: COEUR D ALENE MINES CORP CENTRAL INDEX KEY: 0000215466 STANDARD INDUSTRIAL CLASSIFICATION: SILVER ORES [1044] IRS NUMBER: 820109423 STATE OF INCORPORATION: ID FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K/A SEC ACT: 1934 Act SEC FILE NUMBER: 001-08641 FILM NUMBER: 95545273 BUSINESS ADDRESS: STREET 1: 400 COEUR D ALENE MINES BLDG STREET 2: 505 FRONT AVE CITY: COEUR D ALENE STATE: ID ZIP: 83814 BUSINESS PHONE: 2086673511 MAIL ADDRESS: STREET 1: 400 COEUR D ALENE MINES BLDG STREET 2: 505 FRONT AVE CITY: COEUR D'ALENE STATE: ID ZIP: 83814 8-K/A 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ------------------- FORM 8-K/A No.1 Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date or Report (Date of earliest event reported): April 30, 1993 COEUR D'ALENE MINES CORPORATION ------------------------------------------------------ (Exact name of registrant as specified in its charter) Idaho 1-8641 82-0109423 (State or other jurisdiction of Commission I.R.S. Employer incorporation or organization) File Number) Identification No.) 505 Front Ave., P. O. Box "I" Coeur d'Alene, Idaho 83816 (Address of principal (Zip Code) Executive Offices) Registrant's telephone number, including area code: (208) 667-3511 The undersigned registrant hereby amends the following items, financial statement, exhibits or other portions of its Current Report on Form 8-K, dated May 2, 1995, as set forth in the pages attached hereto: Item 7(b) - Pro Forma Financial Information Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this amendment to be signed on its behalf by the undersigned, thereto duly authorized. COEUR D'ALENE MINES CORPORATION By: /s/Dennis E. Wheeler Dennis E. Wheeler Chairman, President and Chief Executive Officer Date: June 2, 1995 The current Report on Form 8-K of Coeur d'Alene Mines Corporation (the "Registrant") dated May 2, 1995 and filed on May 17, 1995, reported the sale of the assets of the Flexaust Company Division of Callahan Mining Corporation, a wholly-owned subsidiary of the Company, ("Callahan") and the shares representing 50% of the equity interest owned by Callahan in Flexaust Incorporated. (The Flexaust Company Division and 50% interest in Flexaust Incorporated are collectively referred to hereinafter as "Flexaust.") Item 7(b) of the report stated that the pro-forma financial information required under Article 11 of Regulations S-X would be filed not later than 60 days after the date on which the Form 8-K was required to be filed. The purpose of this amendment is to file pro forma financial information. Item 7. Financial Statement, Pro Forma Financial Information And Exhibits (b) Pro Forma Financial Information. The following lists the unaudited pro forma financial information attached hereto: Page(s) Unaudited pro forma consolidated financial statements..................................................... 1 Pro forma consolidated balance sheet as of March 31, 1995, December 31, 1994 and March 31, 1994 ................................................ 2-7 Pro forma consolidated statements of operations for the three months ended March 31, 1995, year ended December 31, 1994 and three months ended March 31, 1994 .......................................... 8-10 Notes to unaudited consolidated pro forma financial.statements .......................................... 11 (c) Exhibits. None. Unaudited Pro Forma Consolidated Financial Statements The historical balance sheet and income statement information, included in the pro forma financial information that follows, has been adjusted "as if" the transaction, that occurred after the date of this historical information , had occurred at the date of the historical information. This pro forma information is intended to help readers understand the impact of the transaction by showing how the transaction might have affected the historical financial statements. The following Pro Forma Consolidated Balance Sheet and Pro Forma Consolidated Statement of Operations of the Company as of and for the three months ended March 31, 1995, and for the year ended December 31, 1994 and for the three months ended March 31, 1994 give effect to the sale of Flexaust by the Company. The pro forma information is based on the historical financial statements of the Company giving effect to the sale and the assumptions and adjustments in the accompanying notes to the Pro Forma Financial Statements. The Pro Forma Consolidated Financial Statements have been prepared by the Company's management based on the historical financial statements of the Company. These Pro Forma Financial Statements may not be indicative of the results that actually would have occurred if the sale had been in effect on the dates indicated or which may be obtained in the future. The Pro Forma Financial Statements should be read in conjunction with the audited financial statements and notes incorporated by reference or contained elsewhere herein. 1 Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
March 31,1995 -------------------------------------------------------- Historical Pro Forma See Proforma Balance Adjustments Notes Balances -------------------------------------------------------- CURRENT ASSETS Cash and cash equivalents $20,714,862 $3,361,109 (A) $24,075,971 Short term investments 113,640,743 113,640,743 Receivables 13,974,286 (1,794,249) (A),(B) 12,180,037 Inventories 35,903,623 (1,706,205) (A) 34,197,418 --------------------------- ------------ Total Current assets 184,233,514 (139,345) 184,094,169 PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment 96,470,341 4,638,328) (A) 91,832,013 Less accumulated depreciation 40,548,341 (2,601,693) (A) 37,946,648 --------------------------- ------------ 55,922,000 (2,036,635) 53,885,365 MINING PROPERTIES Operational mining properties 98,472,697 98,472,697 Less accumulated depletion 33,529,718 33,529,718 --------------------------- ------------ 64,942,979 64,942,979 Developmental properties 99,758,070 99,758,070 --------------------------- ------------ 164,701,049 164,701,049 OTHER ASSETS Notes receivable 6,000,000 (A) 6,000,000 Other 11,872,373 (548,111) (A) 11,324,262 --------------------------- ------------ $416,728,936 $3,275,909 $420,004,845 --------------------------- ------------ --------------------------- ------------ See notes to unaudited Proforma Consolidated Financial Statements
2 Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
March 31,1995 -------------------------------------------------------- Historical Pro Forma See Proforma Balance Adjustments Notes Balances -------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $1,909,407 ($203,167) (A) $1,706,240 Accrued liabilities 5,928,352 (102,199) (A) 5,826,153 Cash dividends payable 2,339,376 2,339,376 Short term project financing 5,000,000 5,000,000 Accrued interest payable 5,031,739 5,031,739 Accrued salaries and wages 3,278,939 (258,782) (A) 3,020,157 Other current liabilities 173,876 173,876 Current portion of obligations under capital leases 2,077,990 2,077,990 --------------------------- ------------ Total Current Liabilities 25,739,679 (564,148) 25,175,531 OTHER LIABILITIES 6% Subordinated Convertible Debentures 50,000,000 50,000,000 7% Subordinated Convertible Debentures 74,990,000 74,990,000 6 3/8 % Subordinated Convertible Debentures 100,000,000 100,000,000 Obligations under capital leases 1,153,694 1,153,694 Other long-term liabilities 5,286,854 5,286,854 Deferred income taxes 588,352 1,534,386 (D) 2,122,738 --------------------------- ------------ Total Long-Term Liabilities 232,018,900 1,534,386 233,553,286 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred Stock, par value $1.00 per share authorized 10,000,000 shares, none outstanding Common Stock, par value $1.00 per share-- authorized 60,000,000 shares, issued 16,655,051 shares ( including 1,059,051 16,655,051 16,655,051 shares held in treasury stock) Capital surplus 180,896,087 180,896,087 Accumulated deficit (20,218,799) 2,305,670 (B),(D) (17,913,129) Unrealized losses on short term investments (5,037,389) (5,037,389) Repurchased and Nonvested Shares (13,324,593) (13,324,593) --------------------------- ------------ 158,970,357 2,305,670 161,276,027 --------------------------- ------------ $416,728,936 $3,275,909 $420,004,845 --------------------------- ------------ --------------------------- ------------ See notes to unaudited Proforma Consolidated Financial Statements
3 Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
December 31,1994 -------------------------------------------------------- Historical Pro Forma See Proforma Balance Adjustments Notes Balances -------------------------------------------------------- CURRENT ASSETS Cash and cash equivalents $15,147,908 $3,100,182 (A) $18,248,090 Short term investments 128,112,407 128,112,407 Receivables 12,881,456 (1,170,843) (A) 11,710,613 Inventories 35,946,125 (1,730,998) (A) 34,215,127 --------------------------- ------------ Total Current assets 192,087,896 198,341 192,286,237 PROPERTY, PLANT AND EQUIPMENT Property,plant and equipment 88,468,531 (4,595,742) (A) 83,872,789 Less accumulated depreciation 39,947,983 (2,553,688) (A) 37,394,295 --------------------------- ------------ 48,520,548 (2,042,054) 46,478,494 MINING PROPERTIES Operational mining properties 102,571,977 102,571,977 Less accumulated depletion 38,162,432 38,162,432 --------------------------- ------------ 64,409,545 64,409,545 Developmental properties 95,896,774 95,896,774 --------------------------- ------------ 160,306,319 160,306,319 OTHER ASSETS Notes receivable 6,000,000 (A) 6,000,000 Other 11,927,920 (499,810) (A) 11,428,110 --------------------------- ------------ $412,842,683 $3,656,477 $416,499,160 --------------------------- ------------ --------------------------- ------------ See notes to unaudited Proforma Consolidated Financial Statements
4 Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
December 31,1994 -------------------------------------------------------- Historical Pro Forma See Proforma Balance Adjustments Notes Balances -------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $2,458,605 ($168,797) (A) $2,289,808 Accrued liabilities 4,158,792 (38,537) (A) 4,120,255 Accrued interest payable 4,634,961 4,634,961 Accrued salaries and wages 4,164,061 (296,260) (A) 3,867,801 Other current liabilities 1,084,366 1,084,366 Current portion of obligations under capital leases 2,041,057 2,041,057 --------------------------- ------------ Total Current Liabilities 18,541,842 (503,594) 18,038,248 OTHER LIABILITIES 6% Subordinated Convertible Debentures 50,000,000 50,000,000 7% Subordinated Convertible Debentures 75,000,000 75,000,000 6 3/8 % Subordinated Convertible Debentures 100,000,000 100,000,000 Obligations under capital leases 2,192,856 2,192,856 Other long-term liabilities 5,234,899 5,234,899 Deferred income taxes 1,580,804 1,659,229 (D) 3,240,033 --------------------------- ------------ Total Long-Term Liabilities 234,008,559 1,659,229 235,667,788 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred Stock, par value $1.00 per share authorized 10,000,000 shares, none outstanding Common Stock, par value $1.00 per share-- authorized 60,000,000 shares, issued 16,633,163 shares (including 1,059,051 16,633,163 16,633,163 shares held in treasury stock) Capital surplus 182,881,071 182,881,071 Accumulated deficit (17,043,506) 2,500,842 (B),(D) (14,542,664) Unrealized losses on short term investments (8,820,137) (8,820,137) Repurchased and Nonvested Shares (13,358,309) (13,358,309) --------------------------- ------------ 160,292,282 2,500,842 162,793,124 --------------------------- ------------ $412,842,683 $3,656,477 $416,499,160 --------------------------- ------------ --------------------------- ------------ See notes to unaudited Proforma Consolidated Financial Statements
5 Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
March 31,1994 -------------------------------------------------------- Historical Pro Forma See Proforma Balance Adjustments Notes Balances -------------------------------------------------------- CURRENT ASSETS Cash and cash equivalents $27,076,924 $3,697,408 (A) $30,774,332 Short term investments 147,384,045 147,384,045 Receivables 9,925,926 (1,272,138) (A) 8,653,788 Inventories 33,839,026 (1,740,249) (A) 32,098,777 --------------------------- ------------ Total Current assets 218,225,921 685,021 218,910,942 PROPERTY, PLANT AND EQUIPMENT Property,plant and equipment 82,715,422 (4,548,597) (A) 78,166,825 Less accumulated depreciation 37,098,626 (2,489,836) (A) 34,608,790 --------------------------- ------------ 45,616,796 (2,058,761) 43,558,035 MINING PROPERTIES Operational mining properties 91,370,967 91,370,967 Less accumulated depletion 34,540,473 34,540,473 --------------------------- ------------ 56,830,494 56,830,494 Developmental properties 86,158,053 86,158,053 --------------------------- ------------ 142,988,547 142,988,547 OTHER ASSETS Notes receivable 6,000,000 (A) 6,000,000 Other 15,557,980 (358,776) (A) 15,199,204 --------------------------- ------------ $422,389,244 $4,267,484 $426,656,728 --------------------------- ------------ --------------------------- ------------ See notes to unaudited Proforma Consolidated Financial Statements
6 Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
March 31,1994 -------------------------------------------------------- Historical Pro Forma See Proforma Balance Adjustments Notes Balances -------------------------------------------------------- LIABILITIES AND STOCKHOLDERS' EQUITY Accounts payable $1,372,278 ($215,990) (A) $1,156,288 Accrued liabilities 3,571,455 (41,557) (A) 3,529,898 Cash dividends payable 2,303,194 2,303,194 Accrued interest payable 5,213,960 5,213,960 Accrued salaries and wages 3,470,327 (277,372) (A) 3,192,955 Other current liabilities 7,512,916 7,512,916 Current portion of obligations under capital leases 1,934,148 1,934,148 --------------------------- ------------ Total Current Liabilities 25,378,278 (534,919) 24,843,359 OTHER LIABILITIES 6% Subordinated Convertible Debentures 50,000,000 50,000,000 7% Subordinated Convertible Debentures 75,000,000 75,000,000 6 3/8 % Subordinated Convertible Debentures 100,000,000 100,000,000 Obligations under capital leases 3,737,292 3,737,292 Other long-term liabilities 4,410,189 4,410,189 Deferred income taxes 1,552,438 1,919,761 (D) 3,472,199 --------------------------- ------------ Total Long-Term Liabilities 234,699,919 1,919,761 236,619,680 COMMITMENTS AND CONTINGENCIES STOCKHOLDERS' EQUITY Preferred Stock, par value $1.00 per share authorized 10,000,000 shares, none outstanding Common Stock, par value $1.00 per share-- authorized 60,000,000 shares, issued 16,413,080 shares ( including 1,058,453 16,413,080 16,413,080 shares held in treasury stock) Capital surplus 179,101,154 179,101,154 Accumulated deficit (15,698,241) 2,882,642 (B),(D) (12,815,599) Unrealized losses on short term investments (4,056,524) (4,056,524) Repurchased and Nonvested Shares (13,448,422) (13,448,422) --------------------------- ------------ 162,311,047 2,882,642 165,193,689 --------------------------- ------------ $422,389,244 $4,267,484 $426,656,728 --------------------------- ------------ --------------------------- ------------ See notes to unaudited Proforma Consolidated Financial Statements
7 Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
Three months ended March 31, 1995 -------------------------------------------------------- Historical Pro Forma See Proforma Balance Adjustments Notes Balances -------------------------------------------------------- INCOME From mine operations: Sale of concentrates and dore' $17,891,169 $17,891,169 Less cost of operations 16,040,529 16,040,529 --------------------------- ------------ Gross Profits 1,850,640 1,850,640 From manufacturing operations: Sale of industrial products 3,072,691 (3,072,691) (A) 0 Less cost of manufacturing 2,801,551 (2,801,551) (A) 0 --------------------------- ------------ Gross profits 271,140 (271,140) 0 OTHER INCOME Interest and other 2,557,293 107,847 (A),(C) 2,665,140 --------------------------- ------------ Total Income 4,679,073 (163,293) 4,515,780 EXPENSES Administration 964,371 964,371 Accounting and legal 367,969 367,969 General corporate 1,585,847 1,585,847 Interest 2,981,865 2,981,865 Mining exploration 1,136,103 1,136,103 Idle facilities 541,011 541,011 Nonrecurring charges 0 --------------------------- ------------ Total Expenses 7,577,166 7,577,166 --------------------------- ------------ Income (Loss) from continuing operations before income taxes (2,898,093) (163,293) (3,061,386) Provision (benefit) for Income taxes 277,200 (69,409) (A),(D) 207,791 --------------------------- ------------ Income (Loss) from continuing operations (3,175,293) (93,884) (3,269,177) Income (Loss) from discontinued operations, net of applicable taxes of $1,599,703 2,399,555 (B),(D) 2,399,555 Net income (loss) ($3,175,293) $2,305,670 ($869,623) --------------------------- ------------ --------------------------- ------------ Earnings per Share Data: Weighted average number of shares of Common Stock and equivalents used in calculation 15,578,036 15,578,036 15,578,036 --------------------------- ------------ --------------------------- ------------ Income(loss) from continuing operations ($0.20) ($0.01) ($0.21) Income(loss) from discontinued operations $0.00 $0.15 $0.15 --------------------------- ------------ Net income (loss) ($0.20) $0.15 ($0.06) --------------------------- ------------ --------------------------- ------------ Cash dividends per share $0.15 ------------ ------------ See notes to unaudited Proforma Consolidated Financial Statements
8 Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
Year ended December 31, 1994 -------------------------------------------------------- Historical Pro Forma See Proforma Balance Adjustments Notes Balances -------------------------------------------------------- INCOME From mine operations: Sale of concentrates and dore' $79,605,938 $79,605,938 Less cost of operations 67,802,368 67,802,368 --------------------------- ------------ Gross Profits 11,803,570 11,803,570 From manufacturing operations: Sale of industrial products 11,416,654 (11,416,654) (A) 0 Less cost of manufacturing 10,263,476 (10,263,476) (A) 0 --------------------------- ------------ Gross profits 1,153,178 (1,153,178) 0 OTHER INCOME Interest and other 12,857,321 453,161 (A),(C) 13,310,482 --------------------------- ------------ 25,814,069 (700,017) 25,114,052 EXPENSES Administration 3,824,946 3,824,946 Accounting and legal 1,673,223 1,673,223 General corporate 6,359,710 6,359,710 Interest 3,877,614 3,877,614 Mining exploration 1,558,752 1,558,752 Idle facilities 11,399,082 11,399,082 Nonrecurring charges 800,000 800,000 --------------------------- ------------ 29,493,327 29,493,327 --------------------------- ------------ Income (Loss) from continuing operations before income taxes (3,679,258) (700,017) (4,379,275) Provision (benefit) for Income taxes 263,306 (292,007) (D) (28,701) --------------------------- ------------ Income (Loss) from continuing operations (3,942,564) (408,010) (4,350,574) Income (Loss) from discontinued operations, net of applicable taxes of $1,939,236 2,908,853 (B),(D) 2,908,853 --------------------------- ------------ Net income (loss) ($3,942,564) $2,500,842 ($1,441,722) --------------------------- ------------ --------------------------- ------------ Earnings per Share Data: Weighted average number of shares of Common Stock and equivalents used in calculation 15,387,889 15,387,889 15,387,889 --------------------------- ------------ --------------------------- ------------ Income(loss) from continuing operations ($0.26) ($0.03) ($0.28) Income(loss) from discontinued operations $0.00 $0.19 $0.19 --------------------------- ------------ Net income (loss) ($0.26) $0.16 ($0.09) --------------------------- ------------ --------------------------- ------------ Cash dividends per share $0.15 ------------ ------------ See notes to unaudited Proforma Consolidated Financial Statements
9 Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
Three months ended March 31, 1994 -------------------------------------------------------- Historical Pro Forma See Proforma Balance Adjustments Notes Balances -------------------------------------------------------- INCOME From mine operations: Sale of concentrates and dore' $20,209,582 $20,209,582 Less cost of operations 17,530,160 17,530,160 --------------------------- ------------ Gross Profits 2,679,422 2,679,422 From manufacturing operations: Sale of industrial products 2,685,916 (2,685,916) (A) 0 Less cost of manufacturing 2,509,563 (2,509,563) (A) 0 --------------------------- ------------ Gross profits 176,353 (176,353) 0 OTHER INCOME Interest and other 1,586,222 127,667 (A),(C) 1,713,889 --------------------------- ------------ 4,441,997 (48,686) 4,393,311 EXPENSES Administration 1,590,709 1,590,709 Accounting and legal 420,940 420,940 General corporate 1,367,106 1,367,106 Interest 2,504,582 2,504,582 Mining exploration 736,324 736,324 Idle facilities 412,344 412,344 Nonrecurring charges 0 0 --------------------------- ------------ 7,032,005 7,032,005 --------------------------- ------------ Income (Loss) from continuing operations before income taxes (2,590,008) (48,686) (2,638,694) Provision (benefit) for Income taxes 7,291 (22,474) (D) (15,183) --------------------------- ------------ Income (Loss) from continuing operations (2,597,299) (26,212) (2,623,511) Income (Loss) from discontinued operations, net of applicable taxes of $1,939,236 2,908,853 (B),(D) 2,908,853 --------------------------- ------------ Net income (loss) ($2,597,299) $2,882,642 $285,343 --------------------------- ------------ --------------------------- ------------ Earnings per Share Data: Weighted average number of shares of Common Stock and equivalents used in calculation 15,338,770 15,338,770 15,338,770 --------------------------- ------------ --------------------------- ------------ Income(loss) from continuing operations ($0.17) ($0.00) ($0.17) Income(loss) from discontinued operations $0.00 $0.19 $0.19 --------------------------- ------------ Net income (loss) ($0.17) $0.19 $0.02 --------------------------- ------------ --------------------------- ------------ Cash dividends per share $0.15 ------------ ------------ See notes to unaudited Proforma Consolidated Financial Statements
10 Notes to Unaudited Pro Forma Consolidated Financial Statements NOTE A: The historical balance sheet and income statement information, included in the pro forma financial information preceding these notes, has been adjusted "as if" the transaction, that occurred after the date of this historical information, had occurred at the beginning of the period presented. This pro forma information is intended to help readers understand the impact of the transaction by showing how it might have affected the historical financial statements. The Pro Forma Consolidated Balance Sheets reflect the Company's March 31, 1995, December 31, 1994, and March 31, 1994 balance sheets and include the effects of events that are directly attributable to the sale of Flexaust. The Pro Forma Consolidated Statements of Operations assume the sale had occurred as of January 1, 1994 and January 1, 1995, and reflect the results of the Company for the year ended December 31, 1994 and three months ended March 31, 1995, and March 31, 1994, and include the effects of events that are directly attributable to the sale. The effective date of closing of the Flexaust transaction was May 2, 1995. The asset and stock Purchase Agreement required the buyers to pay $10 million of which $4 million was paid on the closing date. The remainder of the purchase price is to be paid in annual installments until May 1, 2000. The unpaid notes will accrue interest at an annual rate of 7%. NOTE B: The gain on the sale of Flexaust is calculated as of the beginning of periods presented as follows: 3/31/95 12/31/94 3/31/94 Sales Proceeds $10,000,000 $10,000,000 $10,000,000 Net Assets Sold (6,000,742) (5,151,911) (5,151,911) Income Taxes (1,599,703) (1,939,236) (1,939,236) ------------ ------------ ------------ Gain on Sale $2,399,555 $2,908,853 $2,908,853 ------------ ------------ ------------ ------------ ------------ ------------ The gain on sale of Flexaust is included as income from discontinued operations on the Pro Forma Statement of Operations. NOTE C: Interest income is calculated on the initial payment of $4,000,000 at an assumed rate of 5%. The remaining notes accrue interest at an annual rate of 7%, pursuant to the asset and stock Purchase Agreement. NOTE D: Income tax effects on the pro forma gain on the sale of Flexaust are calculated based on the Company's statutory rate of 40% for federal and state taxes. 11 -----END PRIVACY-ENHANCED MESSAGE-----