EX-99.2 4 a07-20587_1ex99d2.htm EX-99.2

Exhibit 99.2

FINANCIAL STATEMENTS OF BUSINESS ACQUIRED

RADER FARMS, INC.
INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)


 

Interim Condensed Balance Sheet (Unaudited) – March 31, 2007

 

Interim Condensed Statement of Income (Unaudited) – March 31, 2007 and 2006

 

Interim Condensed Statement of Cash Flows (Unaudited) – March 31, 2007 and 2006

 

 




RADER FARMS, INC.

INTERIM CONDENSED BALANCE SHEET

(UNAUDITED)

MARCH 31, 2007

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Current Assets:

 

 

 

 

 

Cash and cash equivalents

 

 

 

$

100,145

 

Accounts receivable

 

 

 

2,473,347

 

Inventory

 

 

 

4,645,842

 

Other current assets

 

 

 

38,712

 

Total current assets

 

 

 

7,258,046

 

 

 

 

 

 

 

Property, Plant and Equipment:

 

 

 

 

 

Fixed Assets

 

$

14,109,740

 

 

 

Less: Accumulated depreciation

 

6,627,003

 

7,482,737

 

 

 

 

 

 

 

Other Assets:

 

 

 

 

 

Investment in farmers’ cooperative

 

77,256

 

 

 

Deposit

 

20,971

 

98,227

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets

 

 

 

$

14,839,010

 

 

See accompanying notes to unaudited interim condensed financial statements

2




 

LIABILITIES AND STOCKHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Current Liabilities:

 

 

 

 

 

Accounts payable

 

 

 

$

2,454,180

 

Line of credit

 

 

 

4,345,500

 

Other current liabilities

 

 

 

642,913

 

Current portion of long-term debt

 

 

 

565,000

 

Total current liabilities

 

 

 

8,007,593

 

 

 

 

 

 

 

Long-Term Debt:

 

 

 

 

 

Note payable - stockholders

 

$

2,536,984

 

 

 

Notes payable

 

1,751,995

 

 

 

Obligations under capital leases

 

106,221

 

 

 

 

 

4,395,200

 

 

 

Less: Current portion included above

 

565,000

 

3,830,200

 

 

 

 

 

 

 

Stockholders’ Equity:

 

 

 

 

 

Common stock, $1 par value, 50,000 shares authorized, 500 shares issued and outstanding

 

500

 

 

 

Additional paid-in capital

 

201,815

 

 

 

Retained earnings

 

2,798,902

 

3,001,217

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Liabilities and Stockholders’ Equity

 

 

 

$

14,839,010

 

 

See accompanying notes to unaudited interim condensed financial statements

3




RADER FARMS, INC.

INTERIM CONDENSED STATEMENTS OF INCOME AND RETAINED EARNINGS

(UNAUDITED)

FOR THE QUARTERS ENDED MARCH 31, 2007 and 2006

 

 

March 31, 2007

 

March 31, 2006

 

Sales

 

$

8,355,317

 

$

6,497,630

 

 

 

 

 

 

 

Cost of Sales

 

6,564,224

 

5,050,034

 

 

 

 

 

 

 

Gross Profit

 

1,791,093

 

1,447,596

 

 

 

 

 

 

 

Selling, General and Administrative Expenses

 

364,887

 

412,232

 

 

 

 

 

 

 

Income from Operations

 

1,426,206

 

1,035,364

 

Other Income (Expense):

 

 

 

 

 

Miscellaneous income

 

13,091

 

20,548

 

Patronage dividend

 

 

 

Gain on disposal of assets

 

 

 

Interest expense, net

 

(211,393

)

(134,539

)

 

 

 

 

 

 

Net Income

 

$

1,227,904

 

$

921,373

 

 

-ooOoo-

 

Retained Earnings, Beginning

 

$

1,570,998

 

$

1,493,992

 

 

 

 

 

 

 

Net Income

 

1,227,904

 

921,373

 

 

 

 

 

 

 

Distributions

 

 

 

 

 

 

 

 

 

Retained Earnings, Ending

 

$

2,798,902

 

$

2,415,365

 

 

See accompanying notes to unaudited interim condensed financial statements

4




RADER FARMS, INC.

INTERIM CONDENSED STATEMENTS OF CASH FLOWS

(UNAUDITED)

FOR THE THREE MONTHS ENDED MARCH 31, 2007 and 2006

 

 

March 31, 2007

 

March 31, 2006

 

Cash Flows from Operating Activities:

 

 

 

 

 

Net income

 

$

1,227,904

 

$

921,373

 

Adjustments to reconcile net income to net cash used by operating activities:

 

 

 

 

 

Depreciation and amortization

 

260,567

 

187,731

 

(Increase) decrease in:

 

 

 

 

 

Accounts receivable

 

(766,843

)

(430,917

)

Inventory

 

2,150,058

 

459,834

 

Other assets and liabilities

 

51,191

 

(3,122

)

Increase (decrease) in:

 

 

 

 

 

Accounts payable

 

467,653

 

(184,534

)

Accrued expenses

 

(332,336

)

(287,319

)

Net Cash Used by Operating Activities

 

3,058,194

 

663,046

 

 

 

 

 

 

 

Cash Flows from Investing Activities:

 

 

 

 

 

Acquisition of property and equipment

 

(337,950

)

(782,641

)

Net Cash Used by Investing Activities

 

(337,950

)

(782,641

)

 

 

 

 

 

 

Cash Flows from Financing Activities:

 

 

 

 

 

Net advances from line of credit

 

(2,650,000

)

194,670

 

Principal payments on long-term debt

 

(289,904

)

(113,299

)

Net Cash Provided by Financing Activities

 

(2,939,904

)

81,371

 

 

 

 

 

 

 

Net Increase in Cash and Cash Equivalents

 

(219,660

)

(38,224

)

 

 

 

 

 

 

Cash and Cash Equivalents, Beginning of Year

 

319,805

 

264,986

 

 

 

 

 

 

 

Cash and Cash Equivalents, End of Year

 

$

100,145

 

$

226,762

 

 

See accompanying notes to unaudited interim condensed financial statements

5