EX-99 3 financials.txt FINANCIALS MOBILE ENERGY SERVICES HOLDINGS, INC./MOBILE ENERGY SERVICES COMPANY, LLC PROFORMA FINANCIAL STATEMENTS The proforma statements and certain of the proforma entries are based upon projections. 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 risk described in public disclosures. 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. All information contained herein is unaudited. 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 2. Fresh-start accounting is assumed to apply for MESH but not MESC 3. The estimated value of MESC's existing property, plant & equipment post-Effective Date is assumed to be approximately $14.5 million, although no formal valuation has been done to support this assumption 4. $1 million in Tax-Exempt Bonds will remain outstanding post-confirmation 5. The proforma statements attached hereto present the proforma effects of the plan as if the Effective Date of the plan will be December 31, 2002 MOBILE ENERGY SERVICES COMPANY, LLC BALANCE SHEET ACTUAL AND PROFORMA AS OF JULY 31, 2002 UNAUDITED (in thousands)
MESC Proforma MESC Actual (a) Entries Proforma (7/31/2002) (8/1/02-12/31/02)(12/31/2002) -------------------------------------------------------------------------------------------- ASSETS CURRENT ASSETS Cash and cash equivalents $ 12,986 $ (1,542) $ 11,444 Restricted deposits 68 - 68 Accounts receivable: - Trade 4,725 - 4,725 Other 223 - 223 Materials and supplies 4,175 - 4,175 Prepaid expenses and other 438 - 438 ----------------------------------------------------------------------------------------- Total current assets 22,615 (1,542) 21,073 PROPERTY, PLANT AND EQUIPMENT 396,876 800 397,676 Less: accumulated depreciation (94,497) (287,587) (382,084) Construction work in progress 7,189 (7,189) - ----------------------------------------------------------------------------------------- Property, plant and equipment, net 309,568 (293,976) 15,592 DEFERRED LOAN COST, net 10,372 (10,372) - ----------------------------------------------------------------------------------------- Total assets $ 342,555 $ (305,890) $ 36,665 -------------------------------------------------===========------===========---========= LIABILITIES AND MEMBERS' EQUITY Liabilities not subject to compromise CURRENT LIABILITIES Trade accounts payable $ 4,290 (431) 3,859 Other accounts payable - - - Accrued expenses and other liabilities 267 - 267 ----------------------------------------------------------------------------------------- Total current liabilities 4,557 (431) 4,126 LONG-TERM DEBT - 1 1 Liabilities subject to compromise (b) 169,941 (169,941) - MEMBERS' EQUITY 168,057 (135,519) 32,538 ----------------------------------------------------------------------------------------- Total liabilities and members' equity $ 342,555 $ (305,890) $ 36,665 ========= =========== =========
(a) The MESC actual column reflects those amounts as shown on the MESC balance sheet as of July 31, 2002. (b) Liabilities subject to compromise include the following amounts First Mortgage Bonds, net of discount of $14,709 124,607 Pollution Control Bonds, net of discount of $7,575 45,334 $ 169,941 ========= MOBILE ENERGY SERVICES COMPANY, LLC STATEMENT OF OPERATIONS ACTUAL AND PROFORMA FOR THE TWELVE MONTHS ENDED JULY 31, 2002 UNAUDITED (in thousands)
MESC Proforma MESC Actual (a) Entries Proforma (8/1/01- (8/1/02- (8/1/01- 7/31/02) 12/31/02) 12/31/02) OPERATING REVENUES: Demand charges $ 44,577 $ 7,315 $ 51,892 Processing charges 24,117 4,500 28,617 Compressed air 331 300 631 Ash hauling 699 60 759 Power sales 4 - 4 ------------------------------------------------------------------------------- Total operating revenues 69,728 12,175 81,903 OPERATING EXPENSES: Operations and maintenance 18,812 6,115 24,927 Fuel 12,301 4,605 16,906 Depreciation and amortization 13,516 5,500 19,016 -------------------------------------------------------------------------------- Total operating expenses 44,629 16,220 60,849 OPERATING LOSS 25,099 (4,045) 21,054 INTEREST, net (2,824 (84) (2,908) OTHER 1,601 - 1,601 -------------------------------------------------------------------------------- Net loss before reorganization items 26,322 (3,961) 22,361 REORGANIZATION ITEMS: Professional fees 5,600 1,850 7,450 Litigation settlement proceeds (16,478 - (16,478) Debt forgiveness income (169,940) (169,940) Loss on asset writedown 299,648 299,648 -------------------------------------------------------------------------------- Total reorganization items (10,878 131,558 120,680 -------------------------------------------------------------------------------- Net income (loss) $ 37,200 $ (135,519) $ (98,319) ======== =========== ==========
(a) The amounts in the MESC actual column reflect actual operating results for the 12-month period ended July 31, 2002 from the MESC income statement. MOBILE ENERGY SERVICES COMPANY, LLC STATEMENTS OF MEMBERS' EQUITY AND RETAINED EARNINGS ACTUAL AND PROFORMA FOR THE TWELVE MONTHS ENDED JULY 31, 2002 UNAUDITED (in thousands)
MESC Proforma MESC Actual (a) Entries Proforma (8/1/01- (8/1/02- (8/1/01- 7/31/02) 12/31/02) 12/31/02) MEMBERS' EQUITY Members' equity at August 1, 2001 $ 81,548 $ - $ 81,548 Members' equity issued - - - ------------------------------------------------------------------------- Members' equity at July 31, 2002 $ 81,548 $ - $ 81,548 -------------------------------------==========--===========---========== RETAINED EARNINGS Retained earnings at August 1, 2001 $ 49,309 $ - $ 49,309 Net income 37,200 (135,519) (98,319) ------------------------------------------------------------------------- Retained earnings at July 31, 2002 $ 86,509 $ (135,519) $ (49,010) -------------------------------------==========--===========----========== TOTAL MEMBERS' EQUITY $ 168,057 $ (135,519) $ 32,538 -------------------------------------==========--===========----==========
MOBILE ENERGY SERVICES COMPANY, LLC PROFORMA ENTRIES (in thousands) UNAUDITED 1. Liabilities subject to compromise $ 169,941 Long-term debt $ 1 Debt forgiveness income $ 169,940 -To discharge liabilities subject to compromise as contemplated in the plan of reorganization 2. Loss on asset writedown $ 299,648 Construction work in progress $ 7,189 Accumulated depreciation $ 282,087 Deferred loan costs $ 10,372 -To writedown property, plant and equipment to estimated fair market value and to writeoff deferred loan costs 3. Operations and maintenance $ 6,115 Fuel $ 4,605 Depreciation and amortization $ 5,500 Professional Fees $ 1,850 Cash $ 689 Demand charges $ 7,315 Processing charges $ 4,500 Compressed air $ 60 Ash hauling $ 300 Interest, net $ 84 Accrued expenses $ 1,000 Accumulated depreciation $ 5,500 -To reflect projected operating results from August 1, 2002 through December 31, 2002 4. Property, plant & equipment $ 800 Cash $ 800 -To record projected capital expenditures from August 1, 2002 through December 31, 2002. 5. Accounts payable-trade $ 431 Accrued expenses $ 1,000 Cash $ 1,431 -To reflect payment of certain allowed claims as of the Effective Date of the Plan of Reorganization
MOBILE ENERGY SERVICES HOLDINGS, INC. BALANCE SHEET ACTUAL AND PROFORMA AS OF JULY 31, 2002 UNAUDITED (in thousands)
MESH Proforma MESH Actual (a) Entries Proforma (7/31/2002) (8/1/02-12/31/02) (12/31/02) ASSETS CURRENT ASSETS Cash and cash equivalents $ 2,209 - $ 2,209 Accounts receivable: Trade - - - Other 2,586 - 2,586 ---------------------------------------------------------------------------------------------- Total current assets 4,795 - 4,795 Investment in subsidiary 14,959 17,579 32,538 ---------------------------------------------------------------------------------------------- Total assets $ 19,754 $ 17,579 $ 37,333 -------------------------------------------------------=========-----==========-------======== LIABILITIES AND SHARHOLDERS' EQUITY Liabilities not subject to compromise CURRENT LIABILITIES Trade accounts payable $ - - - Other accounts payable - - - Accrued expenses and other liabilities 2,333 - 2,333 ---------------------------------------------------------------------------------------------- Total current liabilities 2,333 - 2,333 DEFERRED INCOME TAXES 30,593 (25,035) 5,558 SHAREHOLDERS' EQUITY (DEFICIT) (13,172) 42,614 29,442 ---------------------------------------------------------------------------------------------- Total liabilities and shareholders' equity $ 19,754 $ 17,579 $ 37,333 -------------------------------------------------------=========-----==========-------========
(a) The MESH actual column reflects those amounts as shown on the MESH balance sheet as of July 31, 2002. MOBILE ENERGY SERVICES HOLDINGS, INC. STATEMENT OF OPERATIONS ACTUAL AND PROFORMA FOR THE TWELVE MONTHS ENDED JULY 31, 2002 UNAUDITED (in thousands)
MESH Proforma MESH Actual (a) Entries Proforma (8/1/01-7/31/02)(8/1/02-12/31/02)(8/1/01-12/31/02) Loss on investment in subsidiary $ 37,218 $ (136,580) $ (99,362) Loss before reorganization items 37,218 (136,580) (99,362) Income tax expense 18 - 18 Net loss $ 37,200 $ (136,580) $ (99,380) ---------------------------------=========------===========-------========== (a) The amounts in the MESH actual column reflect actual operating results for the 12-month period ended July 31, 2002 from the MESH income statement.
MOBILE ENERGY SERVICES HOLDINGS, INC. STATEMENTS OF SHAREHOLDERS' EQUITY AND RETAINED EARNINGS ACTUAL AND PROFORMA FOR THE TWELVE MONTHS ENDED JULY 31, 2002 UNAUDITED (in thousands)
MESH Proforma MESH Actual Entries Proforma (8/1/01-7/31/02)(8/1/02-12/31/02)(8/1/01-12/31/02) COMMON STOCK Common stock at August 1, 2001 $ 1 $ (1) $ - Additions - 10,000 10,000 Reductions - - ommon stock at July 31, 2002 $ 1 $ 9,999 $ 10,000 -----------------------------------------------===========------=========------=========== ADDITIONAL PAID-IN CAPITAL Additional paid-in capital at August 1, 2001 $ 52,776 $ - $ 52,776 Additions 19,442 19,442 Reductions - (52,776) (52,776) ------------------------------------------------------------------------------------------ Additional paid-in capital at July 31, 2002 $ 52,776 (33,334) $ 19,442 -----------------------------------------------===========------=========------=========== RETAINED EARNINGS Retained earnings at August 1, 2001 $ (103,149) $ - $ (103,149) Net income 37,200 (136,580) (99,380) Elimination of deficit - 202,529 202,529 ------------------------------------------------------------------------------------------ Retained earnings at July 31, 2002 $ (65,949) $ 65,949 $ - -----------------------------------------------===========------=========------=========== TOTAL SHAREHOLDERS' EQUITY $ (13,172) $ 42,614 $ 29,442 -----------------------------------------------===========------=========------===========
MOBILE ENERGY SERVICES HOLDINGS, INC. PROFORMA ENTRIES UNAUDITED (in thousands) 1. Loss on investment in subsidiary $ 136,580 Investment in subsidiary $136,580 -To reflect projected loss on investment in subsidiary from August 1, 2002 through December 31, 2002 based upon projected loss to be realized by subsidiary 2. 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 3. Deferred tax liability $ 25,035 Retained earnings (old) 25,035 -To record estimated deferred tax liability 4. Investment in subsidiary $ 154,159 Additional paid-in capital (old) $ 42,777 Additional paid-in capital (new) $ 19,442 Retained earnings (old) $177,494 -To adjust carrying value of subsidiary to reflect current book value of subsidiary's equity and remove remainder of retained deficit