EX-99 14 financials.txt FINANCIAL STATEMENTS MOBILE ENERGY SERVICES HOLDINGS, INC./MOBILE ENERGY SERVICES COMPANY, LLC PROFORMA FINANCIAL STATEMENTS The financial statements and proforma adjustments contained in the attached financial statements are unaudited. The proforma entries were developed with information provided in the Disclosure Statement Accompanying the First Amended Plan of Reorganization Dated September 15, 2000 Proposed by Mobile Energy Services Company, L.L.C., Mobile Energy Services Holdings, Inc., and the Bondholder Steering Committee, including the exhibits attached thereto. Certain of the proforma entries are based upon projections attached to the above mentioned Disclosure Statement. These projections are forward-looking statements that based upon various estimates and assumptions. Such information and statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions which are difficult to predict, including risks described in the Disclosure Statement. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted herein. The proforma statements and entries will not be updated to reflect events or changes, whether the result of new information, future events or otherwise. MOBILE ENERGY SERVICES HOLDINGS, INC./MOBILE ENERGY SERVICES COMPANY, LLC ASSUMPTIONS TO PROFORMA FINANCIAL STATEMENTS 1. The results shown in the actual column reflect amounts shown on the respective Debtors' financial statement received from the Company, with minor modification made to format to comply with GAAP 2. Fresh-start accounting is assumed to apply for MESH but not MESC 3. MESC will elect to proceed with the purchase of the CT 4. MESC's liability for severance costs is assumed to be the maximum allowable amount as per Amendement Number 1 to the Cogeneration Development Agreement 5. The estimated value of MESC's existing property, plant & equipment post-Effective Date is assumed to be approximately $50 million, although no formal valuation has been done to support this assumption 6. No accrual for income tax liability was recorded as of September 30, 2000. The deferred tax obligation of MESH arises out of an excess of book value of property, plant and equipment and equipment over its tax value 7. All holders of the Tax-Exempt Bonds are assumed to opt for the receipt of common stock 8. Prepetition liabilities are assumed to be equal in amounts to those in the disclosure statement and discharged according to the first amended joint plan of reorganization 9. The proforma statements attached hereto present the proforma effects of the plan as if the Effective Date of the plan will be January 31, 2001
MOBILE ENERGY SERVICES COMPANY, LLC BALANCE SHEET ACTUAL AND PROFORMA AS OF SEPTEMBER 30, 2000 UNAUDITED (in thousands) MESC Proforma MESC Actual (a) Entries Proforma ASSETS CURRENT ASSETS Cash and cash equivalents $ 11,974 $ (8,093) $ 3,881 Restricted deposits 65 30,120 30,185 Accounts receivable: Trade 11,917 (3,218) 8,699 Other 6 - 6 Materials and supplies 3,837 - 3,837 Prepaid expenses and other 361 - 361 ---------------------------------------------------------------------------------------------------------------------------- Total current assets 28,160 18,809 46,969 PROPERTY, PLANT AND EQUIPMENT 395,493 1,875 397,368 Less: accumulated depreciation (70,399) (275,000) (345,399) Construction work in progress 10,900 35,037 45,937 ---------------------------------------------------------------------------------------------------------------------------- Property, plant and equipment, net 335,994 (238,088) 97,906 DEFERRED LOAN COST, net 16,168 (16,168) - ---------------------------------------------------------------------------------------------------------------------------- Total assets $ 380,322 $ (235,447) $144,875 --------------------------------------------------------------=============------------==============----------============= LIABILITIES AND MEMBERS' EQUITY Liabilities not subject to compromise CURRENT LIABILITIES Trade accounts payable $ 8,178 - 8,178 Other accounts payable - 30,900 30,900 Accrued expenses and other liabilities 773 2,000 2,773 ---------------------------------------------------------------------------------------------------------------------------- Total current liabilities 8,951 32,900 41,851 ---------------------------------------------------------------------------------------------------------------------------- LONG-TERM DEBT - 71,570 71,570 Liabilities subject to compromise 239,198 (b) (239,198) - MEMBERS' EQUITY 132,173 (100,719) 31,454 ---------------------------------------------------------------------------------------------------------------------------- Total liabilities and members' equity $ 380,322 $ (235,447) $144,875 --------------------------------------------------------------=============------------==============----------============= (a) The actual balance shown in the balance sheet above reflect actual results as of September 30, 2000 while the figures shown in the sources and uses statement in the Disclosure Statement show actual results through June 30, 2000 and projected results thereafter (b)Liabilities subject to compromise First Mortgage Bonds , net of discount of$17,165 $ 172,883 Pollution Control Bonds, net of discount of $7,921 64,254 Accounts payable 2,061 ---------------------------------------------------------------------------------------------------------------------------- Total liabilities subject to compromise $ 239,198 ----------------------------------------------------=============-------------------------------------------------
MOBILE ENERGY SERVICES COMPANY, LLC STATEMENT OF OPERATIONS ACTUAL AND PROFORMA FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2000 UNAUDITED (in thousands) MESC Proforma MESC Actual (a) Entries Proforma OPERATING REVENUES: Demand charges $ 33,125 $ 4,126 $ 37,251 Processing charges 32,819 12,587 45,406 Compressed air 450 269 719 Ash hauling 694 221 915 Power sales 377 - 377 ---------------------------------------------------------------------------------------------------------------------------- Total operating revenues 67,465 17,203 84,668 ---------------------------------------------------------------------------------------------------------------------------- OPERATING EXPENSES: Operations and maintenance 21,110 7,654 28,764 Fuel 28,749 12,930 41,679 Depreciation and amortization 13,531 6,000 19,531 ---------------------------------------------------------------------------------------------------------------------------- Total operating expenses 63,390 26,584 89,974 ---------------------------------------------------------------------------------------------------------------------------- OPERATING LOSS 4,075 (9,381) (5,306) INTEREST, net 80 (82) (2) OTHER 25 - 25 ---------------------------------------------------------------------------------------------------------------------------- Net loss before reorganization items 3,970 (9,299) (5,329) ---------------------------------------------------------------------------------------------------------------------------- REORGANIZATION ITEMS: ---------------------------------------------------------------------------------------------------------------------------- Professional fees 4,314 2,000 6,314 Litigation settlement proceeds (30,120) (30,120) Employee termination expense 2,000 2,000 Debt forgiveness income (167,628) (167,628) Loss on asset writedown 285,168 285,168 ---------------------------------------------------------------------------------------------------------------------------- Total reorganization items 4,314 91,420 95,734 ---------------------------------------------------------------------------------------------------------------------------- Net income (loss) $ (344) $ (100,719) $(101,063) --------------------------------------------------------------=============------------==============----------============= (a) The actual balance shown in the statement of operations above reflect actual results through September 30, 2000 while the figures shown in the sources and uses statement in the Disclosure Statement show actual results through June 30, 2000 and projected results thereafter
MOBILE ENERGY SERVICES COMPANY, LLC STATEMENTS OF MEMBERS' EQUITY AND RETAINED EARNINGS ACTUAL AND PROFORMA FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2000 UNAUDITED (in thousands) MESC Proforma MESC Actual (a) Entries Proforma MEMBERS' EQUITY Members' equity at October 1, 1999 $ 81,548 $ - $ 81,548 Members' equity issued - - - ------------------------------------------------------------------------------------------------------- Members' equity at September 30, 2000 $ 81,548 $ - $ 81,548 -------------------------------------------------=============----==============----------============= RETAINED EARNINGS Retained earnings at October 1, 1999 $ 50,969 $ - $ 50,969 Net income (344) (100,719) (101,063) ------------------------------------------------------------------------------------------------------- Retained earnings at September 30, 2000 $ 50,625 $ (100,719) $(50,094) -------------------------------------------------=============----==============----------============= TOTAL MEMBERS' EQUITY $ 132,173 $ (100,719) $ 31,454 -------------------------------------------------=============----==============----------============= (a) The actual balance shown in the statement of members' equity and retained earnings above reflect actual results as of September 30, 2000 while the figures shown in the sources and uses statement in the Disclosure Statement show actual results through June 30, 2000 and projected results thereafter
MOBILE ENERGY SERVICES COMPANY, LLC PROFORMA ENTRIES (in thousands) UNAUDITED 1. Liabilities subject to compromise $ 239,198 Debt forgiveness income $ 167,628 Long-term debt $ 71,570 To record the issuance of new long-term debt and remove liabilities subject to compromise as contemplated in the plan of reorganization 2. Restricted deposits $ 30,120 Litigation settlement proceeds $ 30,120 To record payment from KCTC as contemplated under plan of reorganization 3. Employee termination expense $ 2,000 Accrued expenses and other liabilities $ 2,000 To accrue for projected severance pay obligations pursuant to Amendment Number 1 to the MESC Cogeneration Development Agreement 4. Construction in progress $ 30,900 Other accounts payable $ 30,900 To record the liability for the Turbine Option Fee and turbine payment pursuant to Amendment Number 1 to the MESC Cogeneration Development Agreement 5. Loss on asset writedown 285,168 Accumulated depreciation 269,000 Deferred loan costs 16,168 To writedown property, plant and equipment to estimated fair market value and to writeoff deferred loan costs 6. Operations and maintenance $ 7,654 Fuel $ 12,930 Depreciation and amortization $ 6,000 Professional Fees $ 2,000 Demand charges $ 4,126 Processing charges $ 12,587 Compressed air $ 269 Ash hauling $ 221 Interest, net $ 82 Accumulated depreciation $ 6,000 Accounts receivable-trade $ 3,218 Cash $ 2,081 To reflect projected operating results from October 1, 2000 through January 31, 2001 per the sources and uses statement attached to the Disclosure Statement 7. Property, plant & equipment $ 1,875 Cash $ 1,875 To record projected capital expenditures from October 1, 2000 through January 31, 2001 8. Construction in progress $ 4,137 Cash $ 4,137 To record projected capital expenditures related to the Cogeneration Project
MOBILE ENERGY SERVICES HOLDINGS, INC. BALANCE SHEET ACTUAL AND PROFORMA AS OF SEPTEMBER 30, 2000 UNAUDITED (in thousands) MESH Proforma MESH Actual (a) Entries Proforma ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,106 - $ 2,106 Accounts receivable: Trade - - - Other 2,591 - 2,591 --------------------------------------------------------------------------------------------------------------------------- Total current assets 4,697 - 4,697 --------------------------------------------------------------------------------------------------------------------------- Investment in subsidiary 14,959 16,495 31,454 Investment in Pulpco LLC preferred units 47,500 47,500 Deferred Charges 501 (501) - --------------------------------------------------------------------------------------------------------------------------- Total assets $ 20,157 $ 63,494 $ 83,651 -------------------------------------------------------------=============-------------=============----------============= LIABILITIES AND SHARHOLDERS' EQUITY Liabilities not subject to compromise CURRENT LIABILITIES Trade accounts payable $ - - - Other accounts payable 1 - 1 Accrued expenses and other liabilities - - - --------------------------------------------------------------------------------------------------------------------------- Total current liabilities 1 - 1 --------------------------------------------------------------------------------------------------------------------------- DEFERRED INCOME TAXES 30,259 (10,259) 20,000 SHAREHOLDERS' EQUITY (DEFICIT) (10,103) 73,753 63,650 --------------------------------------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $ 20,157 $ 63,494 $ 83,651 -------------------------------------------------------------=============-------------=============----------============= (a) The actual balance shown in the balance sheet above reflect actual results as of September 30, 2000 while the figures shown in the sources and uses statement in the Disclosure Statement show actual results through June 30, 2000 and projected results thereafter
MOBILE ENERGY SERVICES HOLDINGS, INC. STATEMENT OF OPERATIONS ACTUAL AND PROFORMA FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2000 UNAUDITED (in thousands) MESH Proforma MESH Actual (a) Entries Proforma Loss on investment in subsidiary $ (340) $ (11,199) $(11,539) --------------------------------------------------------------------------------------------------------------------------- Loss before reorganization items (340) (11,199) (11,539) Reorganization items: --------------------------------------------------------------------------------------------------------------------------- Writeoff of deferred charges - 501 501 --------------------------------------------------------------------------------------------------------------------------- Net loss before income tax benefit (340) (11,700) (12,040) Income tax benefit (222) (222) --------------------------------------------------------------------------------------------------------------------------- Net loss $ (118) $ (11,700) $(11,818) -------------------------------------------------------------=============-------------=============----------============= (a) The numbers in the actual column in the statement of operations above reflect actual results through September 30, 2000 while the figures shown in the sources and uses statement in the Disclosure Statement show actual results through June 30, 2000 and projected results thereafter
MOBILE ENERGY SERVICES HOLDINGS, INC. STATEMENTS OF SHAREHOLDERS' EQUITY AND RETAINED EARNINGS ACTUAL AND PROFORMA FOR THE TWELVE MONTHS ENDED SEPTEMBER 30, 2000 UNAUDITED (in thousands) MESH Proforma MESH Actual (a) Entries Proforma COMMON STOCK Common stock at October 1, 1999 $ 1 $ (1) $ - Additions - 10,000 10,000 Reductions - - --------------------------------------------------------------------------------------------------------------------------- Common stock at September 30, 2000 $ 1 $ 9,999 $ 10,000 -------------------------------------------------------------=============-------------=============----------============= ADDITIONAL PAID-IN CAPITAL Additional paid-in capital at October 1, 1999 $ 52,776 $ - $ 52,776 Additions 53,650 53,650 Reductions - (52,776) (52,776) --------------------------------------------------------------------------------------------------------------------------- Additional paid-in capital at September 30, 2000 $ 52,776 $ 874 $ 53,650 -------------------------------------------------------------=============-------------=============----------============= RETAINED EARNINGS Retained earnings at October 1, 1999 $ (62,762) $ - $(62,762) Net income (118) (11,700) (11,818) Elimination of deficit - 74,580 74,580 --------------------------------------------------------------------------------------------------------------------------- Retained earnings at September 30, 2000 $ (62,880) $ 62,880 $ - -------------------------------------------------------------=============-------------=============----------============= TOTAL SHAREHOLDERS' EQUITY $ (10,103) $ 73,753 $ 63,650 -------------------------------------------------------------=============-------------=============----------============= (a) The amounts shown in the statement of shareholders' equity and retained earnings above reflect actual results as of September 30, 2000 while the figures shown in the sources and uses statement in the disclosure Statement show actual results through June 30, 2000 and projected results thereafter
MOBILE ENERGY SERVICES HOLDINGS, INC. PROFORMA ENTRIES UNAUDITED (in thousands) 1. Loss on investment in subsidiary $ 11,199 Investment in subsidiary $ 11,199 -To reflect projected loss on investment in subsidiary from October 1, 2000 through January 31, 2001 based upon projected loss to be realized by subsidiary 1. Common stock (old) $ 1 Additional paid-in capital (old) $ 9,999 Common stock (new) $ 10,000 -To record the exchange of the new common stock for the old common stock 2. Writeoff of deferred charges $ 501 Deferred charges $ 501 -To writeoff deferred charges 3. Deferred tax liability $ 10,259 Retained earnings (old) 10,259 -To record estimated deferred tax liability 4. Investment in Pulpco LLC preferred units $ 47,500 Additional paid-in capital (new) $ 47,500 5. Investment in subsidiary $ 27,694 Additional paid-in capital (old) $ 42,777 Additional paid-in capital (new) $ 6,150 Retained earnings (old) $ 64,321 -To adjust carrying value of subsidiary to reflect current book value of subsidiary's equity and remove remainder of retained deficit