EXHIBIT 10.6
TRANSITION AGREEMENT
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THIS AGREEMENT is made and entered into this 1st day of April, 1997,
by and among Mederer Corporation, a Delaware corporation (the "COMPANY"),
Favorite Brands International, Inc., a Delaware corporation ("FAVORITE BRANDS")
and ▇▇▇▇ ▇▇▇▇▇▇ (the "Employee").
WHEREAS, Favorite Brands is purchasing from the stockholders of the
Company all of the issued and outstanding capital stock of the Company pursuant
to a Stock Purchase Agreement dated February 24, 1997 by and among Favorite
Brands, the Company and the Company's stockholders (the "STOCK PURCHASE
AGREEMENT");
WHEREAS, the parties hereto are entering into this Agreement in
connection with the Stock Purchase Agreement;
WHEREAS, the Company is engaged in the business of developing,
manufacturing, selling, importing, exporting and distribution candy products
(the "BUSINESS");
WHEREAS, the Employee has indicated his willingness to perform
services for the Company in connection with the Business and such other services
as agreed upon between the Company and Employee, and the Company wishes to
engage the Employee to render such services; and
WHEREAS, the parties desire to set forth the terms and conditions
under which the Employee is employed and the responsibilities of the Employee;
NOW, THEREFORE, in consideration of the premises and promises
contained herein, the parties agree as follows:
ARTICLE I
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1.1 POSITION. The Company hereby employs the Employee, and the
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Employee hereby accepts employment with the Company, as Chief Operating Officer
of the Company to perform such duties and services as are consistent with (a)
the duties and services currently provided by the Employee to the Company, and
(b) the terms and conditions of this Agreement and the Stock Purchase Agreement
including operating the Company substantially in accordance with the Company's
operating and capital budgets (the "SERVICES"). The Employee shall report to the
Chief Executive Officer of Favorite Brands.
Employment shall commence on the date hereof and shall continue until December
31, 1998 (the "Term") unless earlier terminated pursuant to this Agreement.
1.2 PERFORMANCE. The Employee agrees to devote substantially all of
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his working hours to the performance of his duties hereunder in Plantation,
Florida (except for leaves of absence mutually agreed upon by the Company and
Employee with respect to the family businesses of Employee). The Employee may be
obliged, from time to time, and for reasonable periods of time, to travel in the
performance of the Services consistent with the Employee's duties with the
Company prior to this Agreement.
1.3 BASE SALARY. For all duties to be performed by the Employee
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hereunder, the Employee shall receive an annual base salary (the "BASE SALARY")
of two Hundred Fifty Thousand Dollars ($250,000) in 1997 and $262,500 in 1998,
payable in accordance with the Company's past payroll practices. The Base Salary
shall be prorated for any partial years during the Term.
1.4 FRINGE BENEFITS. The Employee shall be entitled to receive the
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fringe benefits described below which the Employee has been receiving and such
other benefits as are or may become available to other managerial employees of
the Company:
(i) use of an automobile of a model and type similar or
substantially equivalent to the automobile currently provided to the
Employee;
(ii) continuation of life, health and medical, and disability
insurance policies for the benefit of the Employee and his family
providing benefits at least substantially equivalent to the insurance
policies currently in effect;
(iii) use of the Company's condominium in Creston, Iowa;
(iv) business class air travel or the cost of upgrading coach/
economy fares to business class air travel; and
(v) four (4) weeks vacation annually.
Notwithstanding the foregoing, it is agreed that the Employee shall
have no right to participate in any bonus program or any separately negotiated
employment arrangements of the Company.
1.5 EXPENSES. It is understood that the Employee will from time to
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time incur reasonable expenses in conjunction with his employment. The Employee
is authorized to incur reasonable expenses in rendering Services hereunder and
in the performance of his duties hereunder, including expenses for
entertainment, travel arrangements and hotel accommodations and similar items.
The Company will reimburse the Employee in a timely manner at least monthly for
all such expenses upon presentation of an itemized written
2
accounting therefor (together with such vouchers and other verifications as the
Company may require) within thirty (30) days after they have been incurred.
ARTICLE II
OPERATIONS
2.1 BUDGETS AND PROJECTIONS. (a) Attached hereto as Exhibit A are the
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following:
(i) a monthly capital expenditures budget for the Company for
fiscal 1997 which capital expenditures budget shall not in the
aggregate exceed $8,600,000;
(ii) a monthly operating budget for the Company for fiscal 1997
including a monthly income statement, balance sheet, statement of cash
flows and a detailed monthly budget for each of the Company's
departments; and
(iii) EBITDA (as defined in the Stock Purchase Agreement)
projections (the "EBITDA Projections") on a month by month basis for
fiscal 1997 which EBITDA Projections for fiscal 1997 shall be at least
$18,864,000.
Each of the foregoing budgets, plans nd projections have been prepared and
reviewed by the Employee and ▇▇. ▇▇▇▇▇▇▇.
(b) At least 90 days prior to December 31, 1997, the Employee and
▇▇. ▇▇▇▇▇▇▇ shall prepare and deliver to the Chief Executive of Favorite Brands
the following:
(i) a detailed monthly capital expenditures budget for the
Company for fiscal 1998 which capital expenditures budget shall not in
the aggregate exceed $8,400,000;
(ii) a detailed monthly operating for the Company for fiscal
1998 including a monthly income statement, balance sheet, statement
of cash flows, a marketing plan and detailed monthly budgets for each
of the Company's departments; and
(iii) EBITDA Projections on a month by month basis for fiscal
1998 which EBITDA Projections for fiscal 1998 shall be at least
$27,258,000.
2.2 PRIOR APPROVAL. The prior written approval of the Chief Executive
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Officer of Favorite Brands is required with respect to each of the foregoing:
3
(a) any increase in the amount of the capital expenditures for
fiscal 1997 or fiscal 1998, as the case may be, from the capital
expenditures budget attached hereto as Exhibit A or the capital
expenditures budget for fiscal 1998, as the case may be, or any
material change in the types of capital expenditures outlined or
described in such budgets;
(b) any material change in the operating budget of the Company
for fiscal 1997 or fiscal 1998, as the case may be, from the operating
budget attached hereto as Exhibit A or the operating budget for fiscal
1998, as the case may be;
(c) any change in the EBITDA Projections for fiscal year 1997 or
fiscal 1998, as the case may be, from the EBITDA Projections attached
hereto as Exhibit A of the EBITDA Projections for fiscal 1998, as the
case may be;
(d) any material change in the marketing activities, pricing
practices and strategies, slotting fees, approach or focus currently
used by the Company and the Business;
(e) hiring any upper level managerial employees of the Company;
(f) entering into, amending or terminating any agreement,
contract, lease or license (x) with terms extending beyond the term of
this Agreement; (y) requiring annual payments by the Company in excess
of $10,000 with Mederer GmbH, Allophane Corporation, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇
or any of their Affiliates or any entity which is an Affiliate of the
Employee; or (z) which is not in the ordinary course of business and
consistent with the Company's past practices;
(g) any sale, lease, transfer or assignment of any of the
Comapny's assets, tangible or intangible, to (x) any third party
having a value in excess of 10,000, (y) any affiliate of the Employee,
Mederer GmbH, Allophane Corporation or ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ other than the
sale of inventory in the ordinary course of business;
(h) any settlement or termination of any litigation; or
(i) any action which would breach or conflict with the covenants
contained in Favorite Brands' credit facility.
2.3 EBITDA PROJECTIONS. If the Company (a) fails to meet or exceed
80% of the monthly EBITDA Projection for three consecutive months or three out
of four consecutive months and (b) the Company is an aggregate of $2,500,000 or
more below the EBITDA Projections (i) at any time during fiscal 1997, for the
period beginning January 1,
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1997 and (ii) at any time during fiscal 1998, for any twelve month period during
which the conditions in (a) above has occured or exits, then the Company and
Favorite Brands may unilaterally (w) modify the duties of Employee hereunder,
(x) take operational control of the Company, (y) modify the capital expenditures
budget, operating budgets and business plans of the Company and unilaterally
determine the amount of capital expenditures to be spent or (z) terminate this
Agreement pursuant to Section 4.6 (the "PERFORMANCE FAILURE").
ARTICLE III
CONFIDENTIAL INFORMATION
3.1 CONFIDENTIAL INFORMATION. The business of the Comapny and its
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affiliates is established, maintained and continued by providing dependable
services by means of contact between the Employee and customers or suppliers.
The Employee acknowledges that (i) he holds a senior management position with
the Company, (ii) in connection with the Services being rendered under this
Agreement, the Employee has confidential information and trade secrets of the
Comany, Favorite Brands and their subsidiaries ("CONFIDENTIAL INFORMATION"),
including, but not limited to, financial statements, product formulae, client
lists, new products developments, project reports, informaiton system
technologies and applications and documentations, software, internal memoranda,
marketing programs, reports and other materials or records of a proprietary
nature which are not generally known to the public, (iii) the Confidential
Information constitutes a unique and valuable asset of the Company and Favorite
Brands, (iv) maintenance of the proprietary character of such information, to
the full extent feasible, is important to the Company and Favorite Brands, and
(v) the Confidential Information is sufficiently secret as to derive economic
value from not being generally known to others who could obtain economic value
from its disclosure or use. Therefore, in order to protect the Confidential
Information, the Employees agrees as follows:
(a) to hold the Confidential Information, and the Common
Information (as defined below in the Designated Area, in strictest
confidence and not to use or disclose such Confidential Information without
the written authorization of the Company and Favorite Brands, except in
connection with the Services being rendered under this Agreement, for so
long as any such Confidential Information may remain confidential, secret
or otherwise wholly or partially protectable;
(b) to take all appropriate steps to safeguard any Confidental
Information and to protect it against disclosure, misuse, espionage, loss
and theft;
(c) to return to the Company upon termination of employment all
materials relating to the Company, Favorite Brands and their subsidiaries
or
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the Business, including all Confidential Information, coming into the
Employee's possession during the term of this Agreement or while employed
by any predecessor to the Business;
(d) not to use or disclose, or knowingly allow others to use or
disclose, the Common Information in the Designated Area (except pursuant to
the terms of this Agreement); and
(e) not to disclose the Common Information to any person or entity
that may reasonably be excepted to use the Common Information in the
Designated Area.
Notwithstanding anything to the contrary in this Agreement or elsewhere,
Confidential Information does not include information which (i) is or becomes
generally available to the candy/confectionery industry (other than as a result
of a disclosure of information described above by the Employee in breach of this
Agreement), (ii) was developed by Mederer GmbH or Allophane Corporation or
either of their respective affiliates for use by the Company and Mederer GmbH
and Allophane Corporation or their affiliates (the "COMMON INFORMATION"), or
(iii) becomes available to the Employee or its affiliates from a person other
than the Company or Favorite Brands or any of their representatives who is not
otherwise bound by a confidentiality agreement with the Company or Favorite
Brands, or is not otherwise prohibited from transmitting the information to
Employee.
3.2 REMEDIES. The Employee acknowledges that he has carefully read and
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considered the terms of this Agreement and knows them to be essential to induce
the Company and Favorite Brands to enter into this Agreement and that any breach
of the provisions contained herein will result in serious and irreparable injury
to the Company and Favorite Brands. The Employee further acknowledges that the
Company's and Favorite Brand's business interests protected hereby are
substantial and legitimate. Therefore, in the event of a breach of any such
provisions, the Company and Favorite Brands shall be entitled to equitable
relief against the Employee by way of injunction (in addition to, but not in
substitution for, any and all other relief to which the Company and Favorite
Brands may be entitled at law or in equity) to restrain the Employee from such
breach and to compel compliance by the Employee with his obligations hereunder.
The Company and Favorite Brands shall also be entitled to seek a protective
order to ensure the continued confidentiality of its Confidential Information
and Common Information. The Employee hereby waives any requirement of proof that
such breach will cause serious or irreparable injury to the Company or Favorite
Brands, or that there is an adequate remedy at law. In any proceeding, either at
law or in equity, between the parties hereto, it is hereby agreed that the
Employee shall not raise as a defense (i) that any information relating to the
Business or the business of Favorite Brands or its subsidiaries is not
confidential or (ii) that this Agreement is in restraint of trade. Further, the
existence of any claim or cause of action of the Employee against the Company or
Favorite Brands or any of their affiliates, whether or not predicated on the
terms of this Agreement, the Stock Purchase Agreement or the Transaction
Documents (as
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defined in the Stock Purchase Agreement), shall not constitute a defense to the
enforcement of the Employee's obligations under this Agreement.
ARTICLE IV
TERMINATION
4.1 DEATH. In the event of the death of the Employee during the Term,
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this Agreement shall terminate at the end of the month in which the Employee
dies. In addition to any benefits under any insurance, retirement or other plan
of the Company for the Employee, the Company shall pay within thirty (30) days
of the date of death of the Employee's legal representatives or, if the Employee
shall have filed with the Company a designation of a person to receive such
payment, such person, the sum of (i) any unpaid Base Salary through the date of
termination, (ii) accrued and unpaid vacation pay, and (iii) any unreimbursed
expenses incurred by the Employee on the Company's behalf, items (i) through
(iii) are hereinafter referred to as the "TERMINATION PAYMENTS".
4.2 DISABILITY. If, during the Term, the Employee comes under such
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illness, physical or mental disability or other capacity that the Board of
Directors of the Company determines that he is unable to perform his duties
under this Agreement for a period in excess of sixty (60) substantially
consecutive days or nonconsecutive periods aggregating more than 120 days
within any six-month period, exclusive of Saturdays, Sundays, holiday or days on
which the Employee was on vacation, the Company may terminate this Agreement by
giving notice to the Employee of its intention to terminate due to disability
and this Agreement shall terminate at the end of the month following the month
in which such notice was given. In the event of such termination, the Company
shall pay (offset by any such amounts payable under the Company's benefit plans
or insurance or social security payment) the Termination Payments to the
Employee within thirty (30) days of such termination.
4.3 RESIGNATION. The Employee shall have the right to terminate his
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employment under this Agreement at any time upon sixty (60) days' prior written
notice to the Company. At any time during such sixty-day notice period, the
Company may terminate the Employee. In the event of such termination, the
Company shall pay the Termination Payments to the Employee within thirty (30)
days of such termination.
4.4 TERMINATION BY THE COMPANY WITHOUT CAUSE. The Company may
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terminate this Agreement without cause at any time during the Term. In the event
of such termination, the Company shall pay (a) the Termination Payments to the
Employee within thirty (30) days of such termination, and (b) the amount equal
to (i) the Base Salary Employee would have received had Employee remained in the
employ of the Company until the end of the Term less (ii) the amount of any
compensation Employee receives or earns which relates to services performed by
Employee after termination hereunder and prior to the
7
end of the Term in connection with any future employment, consulting or similar
arrangements other than any existing arrangements with family businesses of the
Employee (the "Severance Payment"). Any Severance Payment shall be paid at the
Company's option, either in a lump sum or in accordance with the Company's past
payroll practices. A termination of this Agreement pursuant to Section 4.6 shall
not be deemed to be a termination "WITHOUT CAUSE."
Employee agrees to promptly notify the Company of any employment,
consulting or other similar arrangement entered into by the Employee after
termination and to provide the Company with the information or documents that
the Company reasonably requests to verify the amount of any compensation earned
after such termination.
4.5 TERMINATION BY EMPLOYEE FOR GOOD REASON. The Employee may
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terminate this Agreement with thirty (30) days prior written notice thereof to
Employer for good reason (as hereinafter defined), unless the Company cures to
the reasonable satisfaction of Employee the circumstances or conditions
constituting good reason within ten (10) business days after such notice is
delivered by the Employee. For "GOOD REASON" means Employee's resignation as a
direct result of (i) a substantial diminution of his responsibilities or duties
as the Company's Chief Operating Officer other than pursuant to Section 2.3 as
compared to his responsibilities, duties and authorities as of the date hereof
(ii) relocation of the Employee from Plantation, Florida or (iii) a material
breach by the Company of this Agreement. Upon termination under this Section
4.5, Employee shall be entitled to receive the Termination Payment within thirty
(30) days of such termination and the Severance Payment.
4.6 TERMINATION BY THE COMPANY FOR PERFORMANCE FAILURE. The Company
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may terminate this Agreement at any time during the Term in the event of a
Performance Failure. In the event of such termination, the Company shall pay the
Termination Payments to the Employee within thirty (30) days of such
termination.
4.7 TERMINATION FOR CAUSE. Notwithstanding any other provision
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hereof, the Company may terminate the Employee's employment under this Agreement
without prior notice at any time for cause (as hereinafter defined). The
termination shall be evidenced by written notice thereof to the Employee,
specifying the cause for termination. For purposes hereof, the term "CAUSE"
shall include, without limitation, dishonest, fraudulent or illegal conduct;
misappropriation of Company funds; conviction of a felony; and a material breach
of this Agreement. Upon such termination, the Company shall pay the Employee the
Termination Payment within thirty (30) days of such termination.
4.8 EFFECT OF TERMINATION. Upon termination of this Agreement, all
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obligations of the Company and rights of the Employee under this Agreement shall
cease, except as otherwise provided herein. Notwithstanding anything to the
contrary contained herein, the provisions of Section 3.1 through 3.2 shall
survive any termination of this Agreement of employment and shall remain in full
force and effect.
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ARTICLE V
MISCELLANEOUS
5.1 INDEMNITY. The Company shall, to the full extent permitted by
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the Delaware General Corporation Law as it may then be in effect, indemnify and
hold the Employee harmless and provide advancement of expenses to the Employee
as provided in the charter or by-laws of the Company or which may be otherwise
provided to the Employee by agreement with the Company, if the Employee is a
party, or is or was threatened to be made a party, to any threatened, pending or
completed action, claim, litigation, suit or proceeding, whether civil,
criminal, administrative or investigative, whether predicated on foreign,
federal, state or local law, and whether formal or informal (each an "Action")
by reason of the fact that the Employee is or was a director, officer, employee
or agent of the Company, or is or was serving at the request of the Company as a
director, officer, employee or agent of an Affiliate against expenses (including
reasonable attorneys' fees), judgments, fines and amounts paid in settlement
actually and reasonably incurred by him in connection with such Action, if the
Employee acted in good faith and in a manner he reasonably believed to be in or
not opposed to the best interests of the Company and, with respect to any
criminal action or proceeding, had no reasonable cause to believe his conduct
was unlawful. In any event the Employee shall be entitled to not less than any
indemnification right and right to advancement of expenses provided to the
officers and directors of the Company and Favorite Brands.
5.2 NOTICE. All notices, requests, demands, claims, and other
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communications hereunder will be in writing. Any notice, request, demand, claim,
or other communication hereunder shall be deemed duly given upon receipt if it
is sent by facsimile or reputable express courier, and addressed or otherwise
sent to the intended recipient as set forth below:
To the Employee:
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▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇ ▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇
Telephone No.: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile No.: (▇▇▇) ▇▇▇-▇▇▇▇
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To the Company or Favorite Brands:
---------------------------------
▇▇ ▇. ▇▇▇▇
Favorite Brands International, Inc.
▇▇ ▇▇▇-▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
Copies to:
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Favorite Brands International, Inc.
▇▇ ▇▇▇-▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
and
▇▇▇▇▇▇▇▇▇, Will & ▇▇▇▇▇
▇▇▇ ▇▇▇▇ ▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇▇ ▇▇▇▇▇
Attention: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
Any party may send any notice, request, demand, claim, or other communication
hereunder to the intended recipient at the address or facsimile number set forth
above by using any other means (including personal delivery, messenger service,
ordinary mail, or electronic mail), but no such notice, request, demand, claim,
or other communication shall be deemed to have been duly given unless and until
it actually is received by the intended recipient. Any party may change the
address or facsimile number to which notices, requests, demands, claims, and
other communications hereunder are to be delivered by giving the other party
notice in the manner herein set forth.
5.3 SUCCESSORS AND ASSIGNS. If the Company shall at any time be
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merged or consolidated into or with any other corporation, or if substantially
all of the assets of the Company are transferred to another corporation or
party, the provisions of this Agreement shall be binding upon and inure to the
benefit of the entity or successors resulting from such merger or consolidation
or to which such assets shall be transferred; and this provision shall apply in
such event. Employee may not transfer or assign its obligations, rights or
interests under this Agreement without the Company's prior written consent.
5.4 APPLICABLE LAW. This Agreement shall be governed by and construed
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in accordance with the domestic laws of the State of Illinois without giving
effect to any choice or conflict of law provision or rule that would cause the
application of the laws of any
10
jurisdiction other than the State of Illinois. The parties hereby irrevocably
and unconditionally consent and submit to the in personam jurisdiction of
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Illinois courts over all matters relating to this Agreement. Each party agrees
that service of process in any action or proceeding hereunder may be made upon
such party by certified mail, return receipt requested to the address for notice
set forth herein. Each party irrevocably waives any objection it may have to the
venue of any action, suit or proceeding brought in such courts or to the
convenience of the forum and each party irrevocably waives the right to proceed
in any other jurisdiction. Final judgment in any such action, suit or proceeding
shall be conclusive and may be enforced in other jurisdictions by suit on the
judgment, a certified or true copy of which shall be conclusive evidence of the
fact and the amount of any indebtedness or liability of any party therein
described.
5.5 APPOINTMENT OF AGENT. The Employee irrevocably appoints
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Corporation Trust Company, [ADDRESS], as its authorized agent in Chicago,
Illinois upon which process may be served in any such suit or proceeding, and
agrees that service of process upon such agent, and written notice of said
service to such Stockholder by the person serving the same to the address
provided in this Section 5.5, shall be deemed in every respect effective service
of process upon Employee in any such suit or proceeding. Employee further agrees
to take any and all action as may be necessary to maintain such designation and
appointment of such agent in full force and effect for a period of six years
from the date of this Agreement.
5.6 HEADINGS. The heading in this Agreement are for convenience of
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reference only and shall not limit or otherwise affect the meaning hereof.
5.7 ENTIRE AGREEMENT. This Agreement contains the entire agreement
----------------
of the parties in regard to the subject matter hereof and supersedes all prior
discussions, agreements and understandings of every kind between the parties and
may be changed only by a written document signed by the party against whom
enforcement of any waiver, change, modification, extension or discharge is
sought. The waiver of any breach of any provision of this Agreement shall be
effective only in the specific instance and for the specific purpose for which
given and shall not operate or be construed as a waiver of any subsequent
breach hereof.
5.8 SEVERABILITY. If any provision of this Agreement shall be
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prohibited by or invalid under applicable law, or otherwise determined to be
unenforceable, such provision shall be ineffective to the extent of such
prohibition or invalidity without invalidating the remainder of such provision
or the remaining provisions of this Agreement.
5.9 DEFINITIONS. All capitalized terms not defined herein shall have
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the meanings ascribed to them in the Stock Purchase Agreement.
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IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed as of the date first written above.
FAVORITE BRANDS INTERNATIONAL, INC.
By: [SIGNATURE ILLEGIBLE]
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Its: President and Chief Executive Officer
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MEDERER CORPORATION
By: [SIGNATURE ILLEGIBLE]
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Its: Vice President
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▇▇▇▇ ▇▇▇▇▇▇
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▇▇▇▇ ▇▇▇▇▇▇
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1997 CAPITAL BUDGET REQUEST AND FLOW
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MEDERER
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22 Jan 95 1997
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Project # Description Amount Jan-97 Feb-97 Mar-97
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x701 Automation $3400,000.00 400,000.00 400,000.00 400,000.00
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x702 xx Completion (xxxx Carryover) 3,484,874.00 xxx,000.00 1,201,965.00 837,831.00
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x703 xxxxxx xxx xxxxxxx (xxxx Carryover) 18,449.00 19,4xx.00
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x704 xxxxxx xxx xxx Modification (xxx Carryover) 62,357.14 62,357.10
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x705 xxxxxxx xxxxx and Scale Uno 1 195,000.00 98,300.00 65,700.00
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x706 Fire Album System (Quote 6) 10,154.00
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x707 Rewards Station (Jose's Request) 40,000.00 40,000.00
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x708 xxxxxxx xxxxx Testing Station (Quote 8) 28,000.00 13,000.00
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x709 Sugar xxxx (Quote 9) 84,041.00 40,000.00
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x710 2 Com Syrup xxxxx (Quote 10) 120,000.00 80,000.00 80,000.00
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**** xxxxx xxx xxxxx to xxxx the
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purchase of these tarte *** They advise to
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use 140,000 per tank
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x711 Air Conditioning Loop (Quote 11) 250,000.00 100,000.00
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**** includes hooking up and xxxxxx and also
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moving as air compressor to new room
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x712 Air Conditioning Repairs and Upgrade 154,000.00 12,833.33 12,833.33 12,833.33
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**** xx,000 was moved to preventative xxx.
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x714 Rebuild Pump for xxxx x (Quote 14) 43,000.00 43,004.00
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x715 xxxx Dryer Upgrade xxxx 2 150,000.00
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x716 New xxxxxxx xxxx 2 50,000.00
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x717 xxxxxx Tank (Quote 10) 60,000.00
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x718 Automatic Tray Washer 70,000.00
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x719 xxxxxxxxx xxxxxxxxx Plant (1996 Carryover) 149,770.00 50,000.00 50,000.00 60,000.00
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x720 xxxxxxxx for Warehouse (1996 Carryover) 15,000.00 15,000.00
------------------------------------------------------------------------------------------------------------------------------------
x722 Computer for Office (1996 Carryover) 10,000.00 10,000.00
------------------------------------------------------------------------------------------------------------------------------------
x723 Trays for xxxxx One. Starch AC 175,000.00 175,000.00
=============
------------------------------------------------------------------------------------------------------------------------------------
TOTAL MEDERER 1997 CAPITAL BUDGET $6,554,709.06 $1,820,577.38 $1,791,493.33 $1,3x8,537.33
---------------------------------
------------------------------------------------------------------------------------------------------------------------------------
TROLLI
------------------------------------------------------------------------------------------------------------------------------------
XXXXXX AND XXXXX
------------------------------------------------------------------------------------------------------------------------------------
Uno Printer 2,500.00 2,500.00
------------------------------------------------------------------------------------------------------------------------------------
PC Systems (3) 4,500.00 1,500.00
------------------------------------------------------------------------------------------------------------------------------------
Notebooks (2) 8,000.00 ?,000.00
------------------------------------------------------------------------------------------------------------------------------------
xxx Jet XXXXXXX (2) 700.00 350.00
------------------------------------------------------------------------------------------------------------------------------------
Lesser XXXXXXX (2) 1,200.00 800.00
------------------------------------------------------------------------------------------------------------------------------------
Asarte 10T xxx24 475.00 475.00
------------------------------------------------------------------------------------------------------------------------------------
DCSI CO ROM 290.00 290.00
------------------------------------------------------------------------------------------------------------------------------------
xxxxxx (2) 400.00 400.00
------------------------------------------------------------------------------------------------------------------------------------
Novel 3.12 (50 & Installation 3,900.00 3,900.00
------------------------------------------------------------------------------------------------------------------------------------
Windows xx (30) 3,000.00 3,000.00
------------------------------------------------------------------------------------------------------------------------------------
MS Office xx for xxxxx 425.00 425.00
------------------------------------------------------------------------------------------------------------------------------------
Office xxx xxxxx (30) 12,000.00 12,000.00
------------------------------------------------------------------------------------------------------------------------------------
xxxxxxx Plus 30 (30) 4,500.00 4,500.00
------------------------------------------------------------------------------------------------------------------------------------
xxxxxxx Tape xxxxxx (36) 800.00 800.00
------------------------------------------------------------------------------------------------------------------------------------
xxxxxxxx Pre Lan (35) 1,200.00 1,200.00
------------------------------------------------------------------------------------------------------------------------------------
Norton xxxxxxxx 150.00 150.00
------------------------------------------------------------------------------------------------------------------------------------
xx Access Developers xx 800.00 800.00
-----------------------------------------------------------------=========----------------------------------------------------------
TOTAL TROLLI 1997 CAPITAL BUDGET $ 42,740.00 $ 38,340.00 $ 2,500.00 $ 950.00
--------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
TOTAL MEDERER AND TROLLI BUDGET: $x,xxx,449.00 $1,855,917.38 $1,793,994.33 $1,397,467.33
------------------------------------------------------------------------------------------------------------------------------------
1997
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
22 Jan 95
------------------------------------------------------------------------------------------------------------------------------------
Project # Description Apr-97 May-97 Jun-97 Jul-97
------------------------------------------------------------------------------------------------------------------------------------
x701 Automation 400,000.00 400,000.00 400,000.00 400,000.00
------------------------------------------------------------------------------------------------------------------------------------
x702 xx Completion (xxxx Carryover) 837,838.00
------------------------------------------------------------------------------------------------------------------------------------
x703 xxxxxx xxx xxxxxxx (xxxx Carryover)
------------------------------------------------------------------------------------------------------------------------------------
x704 xxxxxx xxx xxx Modification (xxx Carryover)
------------------------------------------------------------------------------------------------------------------------------------
x705 xxxxxxx xxxxx and Scale Uno 1
------------------------------------------------------------------------------------------------------------------------------------
x706 Fire Album System (Quote 6) 10,158.00
------------------------------------------------------------------------------------------------------------------------------------
x707 Rewards Station (Jose's Request)
------------------------------------------------------------------------------------------------------------------------------------
x708 xxxxxxx xxxxx Testing Station (Quote 8) 13,000.00
------------------------------------------------------------------------------------------------------------------------------------
x709 Sugar xxxx (Quote 9) 44,041.00
------------------------------------------------------------------------------------------------------------------------------------
x710 2 Com Syrup xxxxx (Quote 10)
------------------------------------------------------------------------------------------------------------------------------------
**** xxxxx xxx xxxxx to xxxx the
------------------------------------------------------------------------------------------------------------------------------------
purchase of these tarte *** They advise to
------------------------------------------------------------------------------------------------------------------------------------
use 140,000 per tank
------------------------------------------------------------------------------------------------------------------------------------
x711 Air Conditioning Loop (Quote 11) 1?0,000.00
------------------------------------------------------------------------------------------------------------------------------------
**** includes hooking up and xxxxxx and also
------------------------------------------------------------------------------------------------------------------------------------
moving as air compressor to new room
------------------------------------------------------------------------------------------------------------------------------------
x712 Air Conditioning Repairs and Upgrade 12,833.33 12,833.33 12,833.33 12,833.33
------------------------------------------------------------------------------------------------------------------------------------
**** xx,000 was moved to preventative xxx.
------------------------------------------------------------------------------------------------------------------------------------
x714 Rebuild Pump for xxxx x (Quote 14)
------------------------------------------------------------------------------------------------------------------------------------
x715 xxxx Dryer Upgrade xxxx 2 150,000.00
------------------------------------------------------------------------------------------------------------------------------------
x716 New xxxxxxx xxxx 2 50,000.00
------------------------------------------------------------------------------------------------------------------------------------
x717 xxxxxx Tank (Quote 10) 60,000.00
------------------------------------------------------------------------------------------------------------------------------------
x718 Automatic Tray Washer 70,000.00
------------------------------------------------------------------------------------------------------------------------------------
x719 xxxxxxxxx xxxxxxxxx Plant (1996 Carryover) 39,770.00
------------------------------------------------------------------------------------------------------------------------------------
x720 xxxxxxxx for Warehouse (1996 Carryover)
------------------------------------------------------------------------------------------------------------------------------------
x722 Computer for Office (1996 Carryover)
------------------------------------------------------------------------------------------------------------------------------------
x723 Trays for xxxxx One. Starch AC
------------------------------------------------------------------------------------------------------------------------------------
TOTAL MEDERER 1997 CAPITAL BUDGET $1,313,434.33 $ 822,433.33 $ 532.833.33 $ 412,833.33
---------------------------------
------------------------------------------------------------------------------------------------------------------------------------
TROLLI
------------------------------------------------------------------------------------------------------------------------------------
XXXXXX AND XXXXX
------------------------------------------------------------------------------------------------------------------------------------
Uno Printer
------------------------------------------------------------------------------------------------------------------------------------
PC Systems (3)
------------------------------------------------------------------------------------------------------------------------------------
Notebooks (2) 1,??0.00
------------------------------------------------------------------------------------------------------------------------------------
xxx Jet XXXXXXX (2) 350.00
------------------------------------------------------------------------------------------------------------------------------------
Lesser XXXXXXX (2)
------------------------------------------------------------------------------------------------------------------------------------
Asarte 10T xxx24
------------------------------------------------------------------------------------------------------------------------------------
DCSI CO ROM
------------------------------------------------------------------------------------------------------------------------------------
xxxxxx (2)
------------------------------------------------------------------------------------------------------------------------------------
Novel 3.12 (50 & Installation
------------------------------------------------------------------------------------------------------------------------------------
Windows xx (30)
------------------------------------------------------------------------------------------------------------------------------------
MS Office xx for xxxxx
------------------------------------------------------------------------------------------------------------------------------------
Office xxx xxxxx (30)
------------------------------------------------------------------------------------------------------------------------------------
xxxxxxx Plus 30 (30)
------------------------------------------------------------------------------------------------------------------------------------
xxxxxxx Tape xxxxxx (36)
------------------------------------------------------------------------------------------------------------------------------------
xxxxxxxx Pre Lan (35)
------------------------------------------------------------------------------------------------------------------------------------
Norton xxxxxxxx
------------------------------------------------------------------------------------------------------------------------------------
xx Access Developers xx
------------------------------------------------------------------------------------------------------------------------------------
TOTAL TROLLI 1997 CAPITAL BUDGET $ - $ - $ 1,850.00 $ -
--------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
TOTAL MEDERER AND TROLLI BUDGET: $1,313,434.33 $ 422,433.33 $ 534,443.33 $ 412,433.33
------------------------------------------------------------------------------------------------------------------------------------
1997
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
22 Jan 95
------------------------------------------------------------------------------------------------------------------------------------
Project # Description Aug-97 Sep-97 Oct-97 Nov-97
------------------------------------------------------------------------------------------------------------------------------------
x701 Automation 400,000.00 100,000.00 100,000.00
------------------------------------------------------------------------------------------------------------------------------------
x702 xx Completion (xxxx Carryover)
------------------------------------------------------------------------------------------------------------------------------------
x703 xxxxxx xxx xxxxxxx (xxxx Carryover)
------------------------------------------------------------------------------------------------------------------------------------
x704 xxxxxx xxx xxx Modification (xxx Carryover)
------------------------------------------------------------------------------------------------------------------------------------
x705 xxxxxxx xxxxx and Scale Uno 1
------------------------------------------------------------------------------------------------------------------------------------
x706 Fire Album System (Quote 6)
------------------------------------------------------------------------------------------------------------------------------------
x707 Rewards Station (Jose's Request)
------------------------------------------------------------------------------------------------------------------------------------
x708 xxxxxxx xxxxx Testing Station (Quote 8)
------------------------------------------------------------------------------------------------------------------------------------
x709 Sugar xxxx (Quote 9)
------------------------------------------------------------------------------------------------------------------------------------
x710 2 Com Syrup xxxxx (Quote 10)
------------------------------------------------------------------------------------------------------------------------------------
**** xxxxx xxx xxxxx to xxxx the
------------------------------------------------------------------------------------------------------------------------------------
purchase of these tarte *** They advise to
------------------------------------------------------------------------------------------------------------------------------------
use 140,000 per tank
------------------------------------------------------------------------------------------------------------------------------------
x711 Air Conditioning Loop (Quote 11)
------------------------------------------------------------------------------------------------------------------------------------
**** includes hooking up and xxxxxx and also
------------------------------------------------------------------------------------------------------------------------------------
moving as air compressor to new room
------------------------------------------------------------------------------------------------------------------------------------
x712 Air Conditioning Repairs and Upgrade 12,833.33 12,833.33 12,833.33 12,833.33
------------------------------------------------------------------------------------------------------------------------------------
**** xx,000 was moved to preventative xxx.
------------------------------------------------------------------------------------------------------------------------------------
x714 Rebuild Pump for xxxx x (Quote 14)
------------------------------------------------------------------------------------------------------------------------------------
x715 xxxx Dryer Upgrade xxxx 2
------------------------------------------------------------------------------------------------------------------------------------
x716 New xxxxxxx xxxx 2
------------------------------------------------------------------------------------------------------------------------------------
x717 xxxxxx Tank (Quote 10)
------------------------------------------------------------------------------------------------------------------------------------
x718 Automatic Tray Washer
------------------------------------------------------------------------------------------------------------------------------------
x719 xxxxxxxxx xxxxxxxxx Plant (1996 Carryover)
------------------------------------------------------------------------------------------------------------------------------------
x720 xxxxxxxx for Warehouse (1996 Carryover)
------------------------------------------------------------------------------------------------------------------------------------
x722 Computer for Office (1996 Carryover)
------------------------------------------------------------------------------------------------------------------------------------
x723 Trays for xxxxx One. Starch AC
------------------------------------------------------------------------------------------------------------------------------------
TOTAL MEDERER 1997 CAPITAL BUDGET $ 412.833.33 $ 112.833.33 $ 112,833.33 $ 12,833.33
---------------------------------
------------------------------------------------------------------------------------------------------------------------------------
TROLLI
------------------------------------------------------------------------------------------------------------------------------------
XXXXXX AND XXXXX
------------------------------------------------------------------------------------------------------------------------------------
Uno Printer
------------------------------------------------------------------------------------------------------------------------------------
PC Systems (3)
------------------------------------------------------------------------------------------------------------------------------------
Notebooks (2) 1,600.00
------------------------------------------------------------------------------------------------------------------------------------
xxx Jet XXXXXXX (2)
------------------------------------------------------------------------------------------------------------------------------------
Lesser XXXXXXX (2)
------------------------------------------------------------------------------------------------------------------------------------
Asarte 10T xxx24 ?00.00
------------------------------------------------------------------------------------------------------------------------------------
DCSI CO ROM
------------------------------------------------------------------------------------------------------------------------------------
xxxxxx (2)
------------------------------------------------------------------------------------------------------------------------------------
Novel 3.12 (50 & Installation
------------------------------------------------------------------------------------------------------------------------------------
Windows xx (30)
------------------------------------------------------------------------------------------------------------------------------------
MS Office xx for xxxxx
------------------------------------------------------------------------------------------------------------------------------------
Office xxx xxxxx (30)
------------------------------------------------------------------------------------------------------------------------------------
xxxxxxx Plus 30 (30)
------------------------------------------------------------------------------------------------------------------------------------
xxxxxxx Tape xxxxxx (36)
------------------------------------------------------------------------------------------------------------------------------------
xxxxxxxx Pre Lan (35)
------------------------------------------------------------------------------------------------------------------------------------
Norton xxxxxxxx
------------------------------------------------------------------------------------------------------------------------------------
xx Access Developers xx
------------------------------------------------------------------------------------------------------------------------------------
TOTAL TROLLI 1997 CAPITAL BUDGET $ - $ 2,100.00 $ - $ -
--------------------------------
------------------------------------------------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------------------------------------------------
TOTAL MEDERER AND TROLLI BUDGET: $ 412,833.33 $ 114,8?3.3? $ 112,833.33 $ 12,833.33
------------------------------------------------------------------------------------------------------------------------------------
1997
------------------------------------------------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
22 Jan 95 1997 TOTAL
----------------------------------------------------------------------------------------------
Project # Description DEC-97
----------------------------------------------------------------------------------------------
x701 Automation 3,400,000.00
----------------------------------------------------------------------------------------------
x702 xx Completion (xxxx Carryover) 3,484,828.00
----------------------------------------------------------------------------------------------
x703 xxxxxx xxx xxxxxxx (xxxx Carryover) ??,???.??
----------------------------------------------------------------------------------------------
x704 xxxxxx xxx xxx Modification (xxx Carryover) 52,357.10
----------------------------------------------------------------------------------------------
x705 xxxxxxx xxxxx and Scale Uno 1 1?5,000.00
----------------------------------------------------------------------------------------------
x706 Fire Album System (Quote 6) 1x,1xx.00
----------------------------------------------------------------------------------------------
x707 Rewards Station (Jose's Request) 40,000.00
----------------------------------------------------------------------------------------------
x708 xxxxxxx xxxxx Testing Station (Quote 8) 24,000.00
----------------------------------------------------------------------------------------------
x709 Sugar xxxx (Quote 9) 84,041.00
----------------------------------------------------------------------------------------------
x710 2 Com Syrup xxxxx (Quote 10) 120,000.00
----------------------------------------------------------------------------------------------
**** xxxxx xxx xxxxx to xxxx the
----------------------------------------------------------------------------------------------
purchase of these tarte *** They advise to
----------------------------------------------------------------------------------------------
use 140,000 per tank
----------------------------------------------------------------------------------------------
x711 Air Conditioning Loop (Quote 11) 250,000.00
----------------------------------------------------------------------------------------------
**** includes hooking up and xxxxxx and also
----------------------------------------------------------------------------------------------
moving as air compressor to new room
----------------------------------------------------------------------------------------------
x712 Air Conditioning Repairs and Upgrade 12,833.33 154,000.00
----------------------------------------------------------------------------------------------
**** xx,000 was moved to preventative xxx.
----------------------------------------------------------------------------------------------
x714 Rebuild Pump for xxxx x (Quote 14) 43,000.00
----------------------------------------------------------------------------------------------
x715 xxxx Dryer Upgrade xxxx 2 150,000.00
----------------------------------------------------------------------------------------------
x716 New xxxxxxx xxxx 2 50,000.00
----------------------------------------------------------------------------------------------
x717 xxxxxx Tank (Quote 10) 60,000.00
----------------------------------------------------------------------------------------------
x718 Automatic Tray Washer 70,000.00
----------------------------------------------------------------------------------------------
x719 xxxxxxxxx xxxxxxxxx Plant (1996 Carryover) 1xx,770.00
----------------------------------------------------------------------------------------------
x720 xxxxxxxx for Warehouse (1996 Carryover) 15,000.00
----------------------------------------------------------------------------------------------
x722 Computer for Office (1996 Carryover) 10,000.00
----------------------------------------------------------------------------------------------
x723 Trays for xxxxx One. Starch AC 175,000.00
--------------------------------------------------------------------------------==============
TOTAL MEDERER 1997 CAPITAL BUDGET $8,554,709.0x
--------------------------------- ==============
----------------------------------------------------------------------------------------------
TROLLI
----------------------------------------------------------------------------------------------
XXXXXX AND XXXXX
----------------------------------------------------------------------------------------------
Uno Printer 2,500.00
----------------------------------------------------------------------------------------------
PC Systems (3) 4,500.00
----------------------------------------------------------------------------------------------
Notebooks (2) 8,000.00
----------------------------------------------------------------------------------------------
xxx Jet XXXXXXX (2) 700.00
----------------------------------------------------------------------------------------------
Lesser XXXXXXX (2) 1,200.00
----------------------------------------------------------------------------------------------
Asarte 10T xxx24 475.00
----------------------------------------------------------------------------------------------
DCSI CO ROM 290.00
----------------------------------------------------------------------------------------------
xxxxxx (2) 400.00
----------------------------------------------------------------------------------------------
Novel 3.12 (50 & Installation 3,900.00
----------------------------------------------------------------------------------------------
Windows xx (30) 3,000.00
----------------------------------------------------------------------------------------------
MS Office xx for xxxxx 425.00
----------------------------------------------------------------------------------------------
Office xxx xxxxx (30) 12,000.00
----------------------------------------------------------------------------------------------
xxxxxxx Plus 30 (30) 4,500.00
----------------------------------------------------------------------------------------------
xxxxxxx Tape xxxxxx (36) 800.00
----------------------------------------------------------------------------------------------
xxxxxxxx Pre Lan (35) 1,200.00
----------------------------------------------------------------------------------------------
Norton xxxxxxxx 150.00
----------------------------------------------------------------------------------------------
xx Access Developers xx 800.00
--------------------------------------------------------------------------------==============
TOTAL TROLLI 1997 CAPITAL BUDGET $ 42,740.00
-------------------------------- ==============
----------------------------------------------------------------------------------------------
----------------------------------------------------------------------------------------------
TOTAL MEDERER AND TROLLI BUDGET: $x,xx7,44x.00
----------------------------------------------------------------------------------------------
1997
----------------------------------------------------------------------------------------------
[xx Copy Unclear]
Detailed Operating Budgets and Footnotes
Notes to Projected Consolidated Income Statement
------------------------------------------------
(1) The draft unaudited projected consolidated income statement reflects the
projected consolidated revenues, expenses and earnings of Mederer
Corporation, Trolli, Inc. and Gelex International relating exclusively to
the manufacture and sales of gummi products for the year ending December
31, 1997. The projected consolidated income statement does not include any
revenues, expenses, or earnings/losses relating to the Excluded Business or
the Excluded Business Disposition, both as defined in the Stock Purchase
Agreement.
Notes to the Projected Consolidated Balance Sheet
-------------------------------------------------
(1) The draft unaudited projected balance sheet reflects the projected
activities of Mederer Corporation, Trolli, Inc. and Gelex International
relating exclusively to the manufacture and sales of gummi products for the
year ending December 31, 1997, including capital expenditures as outlined
in the Projected Capital Budget.
(2) Reflects receivables due to the Company from ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇, payment of
which was made on March 25, 1997, in conformity with the Stock Purchase
Agreement.
(3) Does not include any inventory relating to the Excluded Business.
(4) Does not include any spares relating to the Excluded Business.
(5) Does not include any prepaid expenses relating to the Excluded Business.
(6) Includes the capitalized lease asset relating to the Mederer Associates
Real Owned Property. The projections do not reflect the purchase of these
assets by the Company from Mederer Associates as contemplated by the Stock
Purchase Agreement.
(7) Comprised of investments in and advances to the Excluded Businesses, net of
the long term Deutsch ▇▇▇▇-denominated debt obligation to Mederer Gmbh
related to the recapitalization of Trolli Iberica, which obligation will be
assumed by NEWCO as part of the Excluded Business Disposition.
MEDERER CORP./ TROLLI, INC.
PROJECTED CONSOLIDATED INCOME STATEMENT - NOTE 1
FOR THE YEAR ENDING DECEMBER 31, 1997
DRAFT - UNAUDITED
(ACTUAL) (ACTUAL)
JAN FEB MAR APR MAY JUN
--- --- --- --- --- ---
SALES 7,621,083 9,431,598 10,949,527 11,108,906 11,802,336 12,098,490
Less: Intercompany Elimination (2,883,305) (3,075,354) (3,750,889) (3,786,482) (4,007,171) (4,183,006)
-----------------------------------------------------------------------------
4,757,758 8,358,244 7,196,638 7,322,424 7,795,165 7,915,484
COST OF GOODS SOLD 4,969,328 5,576,130 7,390,810 7,334,267 7,788,388 7,848,694
Less: Intercompany Elimination (2,486,121) (2,991,446) (3,705,869) (3,741,482) (3,962,171) (4,138,006)
-----------------------------------------------------------------------------
2,483,207 2,584,684 3,884,921 3,592,785 3,826,217 3,810,888
-----------------------------------------------------------------------------
GROSS MARGIN 2,274,551 3,771,560 3,513,717 3,729,639 3,960,948 4,104,797
DIRECT SELLING EXPENSES 584,772 846,271 1,050,583 904,818 980,414 931,818
OPERATING EXPENSES 1,025,529 999,820 1,283,755 917,945 1,398,193 1,542,557
Less: Intercompany Elimination/Adjustment 28,717 (55,498) (14,583) (14,583) (14,583) (22,243)
-----------------------------------------------------------------------------
1,054,246 943,322 1,269,172 903,362 1,383,610 1,520,314
DEPRECIATION/AMORTIZATION 240,697 245,160 255,018 327,698 337,771 33?,557
-----------------------------------------------------------------------------
TOTAL OPERATING INCOME 394,836 1,738,807 838,844 1,593,761 1,267,153 1,313,108
OTHER INCOME/EXPENSE
Interest Income 14 23 0 0 0 0
Interest Expense (107,352) (92,602) (109,414) (143,789) (143,324) (142,850)
A/P Cash Discounts 4,621 1,169 7,500 7,500 7,500 7,500
Currency Each Gain (Loss) 25,498 (24,011) (1,667) (1,666) (1,666) (1,66?)
Warehouse Management Fee 15,993 15,993 15,993 15,993 15,993 15,993
Misc. Income (Expenses) (25,810) 8,297 834 834 833 834
Less: Intercompany Elimination (14,583) (14,583) (14,583) (14,583) (14,583) (22,243)
-----------------------------------------------------------------------------
(101,619) (105,714) (101,337) (135,711) (135,247) (142,438)
-----------------------------------------------------------------------------
NET INCOME BEFORE TAXES 293,217 1,631,093 837,607 1,458,050 1,131,908 1,170,670
INCOME TAXES 279,455 562,695 349,253 510,462 395,935 406,120
Less: Intercompany Elimination (173,100) 4,920 (16,200) (16,200) (16,200) (16,200)
-----------------------------------------------------------------------------
108,355 567,615 333,053 484,282 379,735 389,920
-----------------------------------------------------------------------------
TOTAL NET PROFIT/(LOSS) 186,862 1,063,478 504,554 963,767 752,171 780,750
=============================================================================
EBITDA Calculation:
Net Income Before Taxes 293,217 1,631,093 837,607 1,458,050 1,131,906 1,170,870
P. Interest Expense 107,352 92,602 109,414 143,789 143,324 142,856
L. Interest Income (14) (23) 0 0 0 0
P. Depreciation/Amortization 240,697 245,160 255,018 327,698 337,771 339,557
P. Royalties 76,275 95,477 119,378 0 0 0
-----------------------------------------------------------------------------
EBITDA 717,527 2,064,309 1,321,417 1,929,537 1,613,001 1,653,083
=============================================================================
JUL AUG SEP OCT NOV DEC
--- --- --- --- --- ---
SALES 11,809,119 11,971,049 11,362,904 11,461,889 9,314,009 6,584,865
Less: Intercompany Elimination (4,103,530) (4,233,357) (3,940,280) (4,062,902) (3,432,403) (2,285,256)
-----------------------------------------------------------------------------
7,705,589 7,737,692 7,442,624 7,388,987 5,881,606 4,299,609
COST OF GOODS SOLD 7,760,008 7,839,872 7,472,364 7,492,503 6,138,779 4,364,637
Less: Intercompany Elimination (4,058,530) (4,188,357) (3,895,280) (4,017,902) (3,387,403) (2,241,308)
-----------------------------------------------------------------------------
3,701,479 3,651,515 3,577,084 3,474,601 2,751,376 2,123,331
-----------------------------------------------------------------------------
GROSS MARGIN 4,004,110 4,086,177 3,865,540 3,924,387 3,130,230 2,176,277
DIRECT SELLING EXPENSES 982,286 972,170 881,127 869,423 680,296 501,349
OPERATING EXPENSES 1,388,217 1,061,778 1,028,818 1,070,532 886,419 856,401
Less: Intercompany Elimination/Adjustment (14,583) (14,583) (14,583) (14,583) (14,583) (14,583)
-----------------------------------------------------------------------------
1,373,834 1,047,193 1,014,233 1,055,949 871,836 841,818
DEPRECIATION/AMORTIZATION 343,755 343,755 348,517 347,914 352,875 352,675
-----------------------------------------------------------------------------
TOTAL OPERATING INCOME 1,324,435 1,723,058 1,621,663 1,651,101 1,225,423 480,435
OTHER INCOME/EXPENSE
Interest Income 0 0 0 0 0 0
Interest Expense (142,385) (141,911) (141,433) (140,952) (140,488) (139,980)
A/P Cash Discounts 7,500 7,500 7,500 7,500 7,500 7,500
Currency Each Gain (Loss) (1,666) (1,667) (1,667) (1,667) (1,667) (1,667)
Warehouse Management Fee 15,993 15,993 15,993 15,992 15,993 15,993
Misc. Income (Expenses) 833 833 833 834 833 833
Less: Intercompany Elimination (14,583) (14,583) (14,583) (14,583) (14,583) (14,583)
-----------------------------------------------------------------------------
(134,308) (133,835) (133,357) (132,876) (132,392) (131,904)
-----------------------------------------------------------------------------
NET INCOME BEFORE TAXES 1,190,127 1,589,224 1,488,306 1,518,225 1,093,031 348,531
INCOME TAXES 414,138 553,269 520,722 525,974 369,187 138,066
Less: Intercompany Elimination (16,200) (16,200) (16,200) (16,200) (16,200) (15,822)
-----------------------------------------------------------------------------
397,938 537,069 504,522 509,774 372,987 122,244
-----------------------------------------------------------------------------
TOTAL NET PROFIT/(LOSS) 792,188 1,052,156 983,784 1,008,451 720,043 226,287
=============================================================================
EBITDA Calculation:
Net Income Before Taxes 1,180,127 1,589,224 1,488,306 1,518,225 1,093,031 348,531
P. Interest Expense 142,385 14?,911 141,433 140,952 140,488 139,980
L. Interest Income 0 0 0 0 0 0
P. Depreciation/Amortization 343,755 343,755 348,517 347,914 352,675 352,675
P. Royalties 0 0 0 0 0 0
-----------------------------------------------------------------------------
EBITDA 1,676,267 2,074,890 1,978,256 2,007,091 1,586,174 841,186
=============================================================================
TOTALS
------
SALES 125,535,755
Less: Intercompany Elimination (43,723,935)
------------
81,811,820
COST OF GOODS SOLD 82,075,781
Less: Intercompany Elimination (42,813,893)
------------
39,261,888
------------
GROSS MARGIN 42,549,932
DIRECT SELLING EXPENSES 10,165,327
OPERATING EXPENSES 13,459,960
Less: Intercompany Elimination/Adjustment (181,271)
------------
13,278,689
DEPRECIATION/AMORTIZATION 3,835,192
------------
TOTAL OPERATING INCOME 15,270,724
OTHER INCOME/EXPENSE
Interest Income 37
Interest Expense (1,585,466)
A/P Cash Discounts 80,790
Currency Each Gain (Loss) (15,179)
Warehouse Management Fee 191,915
Misc. Income (Expenses) (9,179)
Less: Intercompany Elimination (182,656)
------------
(1,520,738)
------------
NET INCOME BEFORE TAXES 13,749,986
INCOME TAXES 5,045,296
Less: Intercompany Elimination (329,802)
------------
4,715,494
------------
TOTAL NET PROFIT/(LOSS) 9,034,492
============
EBITDA Calculation:
Net Income Before Taxes 13,749,886
P. Interest Expense 1,586,466
L. Interest Income (37)
P. Depreciation/Amortization 3,835,192
P. Royalties 291,130
------------
EBITDA 19,462,737
============
1
MEDERER CORP./ TROLLI, INC.
PROJECTED CONSOLIDATED BALANCE SHEET - NOTE 1
FOR THE YEAR ENDING DECEMBER 31, 1997
DRAFT - UNAUDITED (Actual) (Actual)
JAN FEB MAR APR MAY JUN
--- --- --- --- --- ---
ASSETS
CURRENT ASSETS
Cash 438,997 453,136 724,250 349,983 1,132,748 (127,986)
Accounts Receivable
Trade 4,500,049 5,769,738 6,217,819 6,519,357 6,824,769 7,183,489
Related Parties 6,987,426 6,706,003 6,460,?25 6,471,898 6,220,55? 6,799,148
Less: Intercompany Elimination (6,779,046) (6,495,500) (6,327,892) (6,339,285) (6,087,923) (6,666,515)
----------------------------------------------------------------------------------------
188,380 210,503 132,633 132,633 132,633 132,633
Other 157,964 113,158 148,100 148,100 148,100 148,100
Short Term Loan - Note 2 87,374 120,774 0 0 0 0
Inventory - Note 3
Raw Materials 3,892,473 3,953,797 3,796,586 3,726,566 3,858,566 3,586,566
Finished Goods 2,840,646 3,051,916 3,867,457 3,843,207 3,?68,957 4,289,707
Less: Intercompany Elimination (377,164) (461,092) (507,477) (552,477) (597,477) (642,477)
----------------------------------------------------------------------------------------
2,463,462 2,590,824 3,359,980 3,390,730 3,371,480 3,627,230
Spares - Note 4 836,378 670,502 637,979 638,779 639,579 640,379
Prepaid Expenses - Note 5 143,722 144,039 95,061 92,461 89,861 77,281
----------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 12,508,799 14,028,471 15,112,386 14,996,609 15,895,738 15,267,672
PLANT, PROPERTY AND EQUIPMENT
Building & Leasehold Improvements - Note 6 6,102,740 8,102,740 8,102,740 8,102,740 8,102,740 8,102,740
Equipment & Equipment Deposits 31,430,90? 31,5?0,?04 32,885,000 34,196,434 34,621,267 35,355,950
----------------------------------------------------------------------------------------
39,533,649 39,693,644 40,987,740 42,301,174 42,924,007 43,458,690
Less: Accumulated Depreciation (14,069,532) (14,314,488) (14,569,241) (14,896,664) (15,234,160) (15,573,442)
----------------------------------------------------------------------------------------
TOTAL PLANT, PROPERTY AND EQUIPMENT 25,464,117 25,379,146 28,418,499 27,404,510 27,669,047 27,885,248
OTHER ASSETS
Investment in and Advances to
Excluded Business, net - Note 7 2,160,789 2,157,828 2,157,828 2,157,828 2,157,828 2,157,828
OTHER 73,650 73,650 73,650 73,650 73,650 73,650
Less: Accumulated Amortization (1,165) (1,359) (1,634) (1,909) (2,184) (2,459)
----------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 2,233,274 2,230,119 2,229,844 2,229,569 2,229,294 2,229,019
----------------------------------------------------------------------------------------
TOTAL ASSETS 40,206,190 41,635,738 43,760,731 44,632,688 45,914,877 45,381,939
========================================================================================
DRAFT - UNAUDITED
JUL AUG SEP OCT NOV DEC
--- --- --- --- --- ---
ASSETS
CURRENT ASSETS
Cash 389,286 1,127,958 (337,388) 864,361 1,682,118 990,919
Accounts Receivable
Trade 7,284,848 7,433,205 7,152,462 7,088,484 6,743,216 5,191,106
Related Parties 6,934,745 7,030,997 7,332,117 7,208,157 6,593,251 7,227,179
Less: Intercompany Elimination (6,802,112) (6,698,364) (7,199,464) (7,075,524) (6,460,618) (7,084,546)
----------------------------------------------------------------------------------------
132,633 132,633 132,633 132,633 132,633 132,633
Other 148,100 148,100 148,100 148,100 148,100 148,100
Short Term Loan - Note 2 0 0 0 0 0 0
Inventory - Note 3
Raw Materials 3,516,586 3,446,566 3,376,566 3,308,566 3,236,566 3,156,000
Finished Goods 4,395,457 4,671,207 5,248,195 5,373,945 5,624,695 5,918,235
Less: Intercompany Elimination (667,477) (732,477) (777,477) (822,477) (867,477) (911,427)
----------------------------------------------------------------------------------------
3,707,980 3,938,730 4,470,718 4,551,468 4,757,218 5,006,808
Spares - Note 4 641,179 641,979 642,779 643,579 644,379 645,400
Prepaid Expenses - Note 5 84,661 82,061 89,461 91,861 94,261 93,426
----------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 15,865,253 16,951,232 15,675,331 16,827,052 17,430,491 15,364,392
PLANT, PROPERTY AND EQUIPMENT
Building & Leasehold Improvements - Note 6 8,102,740 8,102,740 8,102,740 8,102,740 8,102,740 8,102,740
Equipment & Equipment Deposits 35,788,783 36,161,616 38,298,549 36,409,302 36,422,215 36,435,046
----------------------------------------------------------------------------------------
43,871,523 44,284,356 44,399,269 44,512,122 44,524,955 44,537,788
Less: Accumulated Depreciation (15,916,922) (16,260,402) (16,608,644) (16,956,282) (17,308,662) (17,661,062)
----------------------------------------------------------------------------------------
TOTAL PLANT, PROPERTY AND EQUIPMENT 27,954,601 28,023,954 27,790,645 27,555,840 27,218,273 26,876,706
OTHER ASSETS
Investment in and Advances to
Excluded Business, net - Note 7 2,157,828 2,157,828 2,157,828 2,157,828 2,157,828 2,157,828
OTHER 73,650 73,650 73,650 73,650 73,650 73,650
Less: Accumulated Amortization (2,734) (3,009) (3,284) (3,559) (3,834) (4,109)
----------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 2,228,744 2,228,469 2,228,194 2,227,919 2,227,644 2,227,369
----------------------------------------------------------------------------------------
TOTAL ASSETS 46,048,598 47,203,855 45,694,170 46,601,811 46,882,408 44,468,467
========================================================================================
MEDERER CORP-TROLL, INC
PROJECTED CONSOLIDATED BALANCE SHEET-NOTE (1)
FOR THE YEAR ENDING DECEMBER 31, 1997
DRAFT - UNAUDITED (Actual) (Actual)
JAN FEB MAR APR MAY JUN JUL AUG SEP
Liabilities and Equity
Current Liabilities
Accounts Payable
Trade 6,434,089 6,616,350 5,304,660 5,465,702 5,401,925 5,395,815 5,704,600 5,631,123 5,100,192
Related Parties 7,223,243 6,737,466 6,633,979 6,715,271 6,694,588 7,246,623 7,137,881 7,164,163 7,390,245
Less: Intercompany
Elimination (6,735,746) (6,494,115) (6,327,992) (6,339,265) (6,087,923) (6,666,515)(6,802,112)(6,696,364)(7,199,484)
-------------------------------------------------------------------------------------------------------
487,497 243,351 305,967 376,006 606,685 580,308 333,749 265,799 190,761
Accrued Expenses 6,209,784 4,524,952 4,670,671 4,669,690 4,640,626 4,244,504 3,969,864 4,149,248 3,701,896
Income Tax Payable 706,943 1,256,061 1,035,373 765,236 1,210,658 569,251 858,893 1,151,492 567,990
Less: Intercompany
Elimination (173,100) (166,160) (184,360) (200,580) (216,780) (232,980) (249,100) (265,380) (201,580)
-------------------------------------------------------------------------------------------------------
533,843 1,067,861 850,903 564,656 993,678 358,271 609,713 806,112 200,410
Current Portion of
Long Term Debt
Note Payable - Norwest 3,813,000 5,508,000 3,613,000 3,913,000 4,013,000 4,113,000 4,063,000 4,013,000 3,963,000
Note Payable -
Cedar Bay 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000
Capital Leases 1,659,577 1,659,577 1,659,577 1,659,577 1,659,577 1,659,577 1,659,577 1,659,577 1,659,577
-------------------------------------------------------------------------------------------------------
Total Current Liabilities 9,577,790 20,078,111 17,045,066 17,066,631 17,755,671 16,789,275 16,602,703 17,044,859 15,341,836
Long Term Liabilities
Notes Payable
Norwest 3,550,000 3,550,000 8,340,000 8,340,000 8,340,000 8,130,000 8,130,000 8,130,000 7,920,000
Cedar Bay 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000 0
Capital Leases 3,626,706 3,694,452 3,557,916 3,422,562 3,265,541 3,148,250 3,009,293 2,870,038 2,729,792
Deferred Income Taxes 689,000 689,000 689,000 689,000 689,000 689,000 689,000 689,000 689,000
-------------------------------------------------------------------------------------------------------
Total Long Term
Liabilities 8,507,706 8,373,452 13,026,916 12,691,562 12,754,541 12,407,250 12,266,293 12,129,038 11,336,792
-------------------------------------------------------------------------------------------------------
Total Liabilities 26,065,496 20,451,583 30,072,004 29,960,193 30,510,212 29,186,525 29,070,996 29,173,697 26,680,628
-------------------------------------------------------------------------------------------------------
Stockholders Equity
Common Stock 23,500 23,500 23,500 23,500 23,500 23,500 23,500 23,500 23,500
Less: Intercompany
Elimination (1,000) (1,000) (1,000) (1,000) (1,000) (1,000) (1,000) (1,000) (1,000)
-------------------------------------------------------------------------------------------------------
22,500 22,500 22,500 22,500 22,500 22,500 22,500 22,500 22,500
Additional Paid
in Capital 3,226,500 3,226,500 3,226,500 3,226,500 3,226,500 3,226,500 3,226,500 3,226,500 3,226,500
Less: Intercompany
Elimination (2,499,000) (2,499,000) (2,499,000) (2,499,000) (2,499,000) (2,499,000)(2,499,000)(2,499,000)(2,499,000)
-------------------------------------------------------------------------------------------------------
727,500 727,500 727,500 727,500 727,500 727,500 727,500 727,500 727,500
Treasury Stock (7,915,500) (7,915,500) (7,915,500) (7,915,500) (7,915,500) (7,915,500)(7,915,500)(7,915,500)(7,915,500)
Retained Earnings 19,099,333 19,099,333 19,099,333 19,099,333 19,099,333 19,099,333 19,099,333 19,099,333 19,099,333
Current Year's Earnings 434,245 1,544,637 2,077,991 3,070,559 3,851,529 4,681,070 5,462,066 6,563,022 7,575,606
Less: Intercompany
Elimination (247,384) (294,297) (323,097) (351,897) (360,697) (409,497) (436,297) (467,097) (495,697)
-------------------------------------------------------------------------------------------------------
186,861 1,250,340 1,754,894 2,718,662 3,470,832 4,251,581 5,043,769 6,095,925 7,079,709
-------------------------------------------------------------------------------------------------------
Total Stockholders Equity 12,120,694 13,184,173 13,606,727 14,652,495 15,404,665 16,185,414 16,977,602 16,029,758 19,013,542
-------------------------------------------------------------------------------------------------------
Total Liabilities
and Equity 40,206,190 41,835,738 43,760,731 44,632,688 45,914,877 45,381,939 40,046,598 47,203,655 45,694,170
=======================================================================================================
OCT NOV DEC
Liabilities and Equity
Current Liabilities
Accounts Payable
Trade 5,060,404 4,912,495 4,222,400
Related Parties 7,238,218 6,563,612 7,159,849
Less: Intercompany
Elimination (7,075,524) (6,460,618) (7,094,546)
-------------------------------------
162,694 102,994 65,303
Accrued Expenses 3,615,360 3,456,796 2,593,083
Income Tax Payable 876,662 1,054,661 474,871
Less: Intercompany
Elimination (297,760) (313,960) (329,802)
-------------------------------------
580,902 740,861 145,069
Current Portion of
Long Term Debt
Note Payable - Norwest 3,873,000 3,773,000 3,674,000
Note Payable -
Cedar Bay 440,000 440,000 440,000
Capital Leases 1,659,577 1,659,577 1,659,577
-------------------------------------
Total Current Liabilities 15,391,937 15,085,743 12,799,432
Long Term Liabilities
Notes Payable
Norwest 7,920,000 7,920,000 7,710,000
Cedar Bay 0 0 0
Capital Leases 2,587,661 2,445,626 2,30?,710
Deferred Income Taxes 689,000 689,000 689,000
-------------------------------------
Total Long Term
Liabilities 11,196,661 11,054,626 10,700,710
-------------------------------------
Total Liabilities 26,500,816 26,140,37? 23,500,142
-------------------------------------
Stockholders Equity
Common Stock 23,500 23,500 23,500
Less: Intercompany
Elimination (1,000) (1,000) (1,000)
-------------------------------------
22,500 22,500 22,500
Additional Paid
in Capital 3,226,500 3,226,500 3,226,500
Less: Intercompany
Elimination (2,499,000) (2,499,000) (2,499,000)
-------------------------------------
727,500 727,500 727,500
Treasury Stock (7,915,500) (7,915,500) (7,915,500)
Retained Earnings 19,099,333 19,099,333 19,099,333
Current Year's Earnings 8,612,857 9,361,701 9,916,117
Less: Intercompany
Elimination (524,697) (553,497) (581,625)
-------------------------------------
8,088,160 8,808,204 9,034,492
-------------------------------------
Total Stockholders Equity 20,021,993 20,742,037 20,966,325
-------------------------------------
Total Liabilities
and Equity 46,610,811 46,662,408 44,468,467
=====================================
3
MEDERER CORP./ TROLLI, INC.
PROJECTED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDING DECEMBER 31, 1997
DRAFT - UNAUDITED (Actual) (Actual)
JAN FEB MAR APR MAY JUN
Net Income 188,862 1,063,478 504,554 963,767 752,171 780,750
Adjustments to reconcile net income to net
cash provided by operating activities:
Amortization of other assets 194 194 275 275 275 275
Depreciation 240,503 244,965 254,743 327,423 337,496 339,282
Deferred income taxes 0 0 0 0 0 0
Changes in Working Capital:
Accounts Receivable (462,076) (1,280,406) (284,379) (301,537) (305,412) (358,720)
Inventories (991,005) (186,666) (611,925) 39,250 89,250 (185,750)
Prepaid Expenses (27,792) (34,441) 81,501 1,800 1,800 11,800
Investment & advances to subsidiaries (203,290) 2,663 0 0 0 0
Other assets 23,973 0 0 0 0 0
Accounts Payable (256,422) (61,885) (1,249,054) 231,061 166,881 (32,668)
Accrued Expenses 4,651,997 (1,130,794) (90,969) (287,518) 400,158 (1,033,729)
----------------------------------------------------------------------------
Net cash from operating activities 3,162,944 (1,364,612) (1,395,254) 974,521 1,442,619 (478,760)
----------------------------------------------------------------------------
Cash Flows from Investing Activities:
Capital Expenditures (3,593,307) (159,995) (1,294,096) (1,313,434) (622,833) (534,663)
----------------------------------------------------------------------------
Net cash from Investing activities (3,593,307) (159,995) (1,294,096) (1,313,434) (622,833) (534,663)
----------------------------------------------------------------------------
Cash Flows from Financing Activities
Proceeds from revolving line of credit 1,275,000 2,870,000 0 100,000 100,000 100,000
Proceeds from term loans 840,000 0 5,000,000 0 0 0
Proceeds from note payable - Cedar Bay 0 0 0 0 0 0
Proceeds from equipment lease 0 0 0 0 0 0
Repayments of revolving line of credit (1,136,000) (1,177,000) (1,693,000) 0 0 0
Repayments of term loans 0 0 (210,000) 0 0 (210,000)
Repayments of note payable -Cedar Bay 0 0 0 0 0 0
Repayments of equipment lease (266,977) (134,254) (136,538) (135,354) (137,021) (137,291)
Change in checks written in excess of bank balance 0 0 0 0 0 127,966
----------------------------------------------------------------------------
Net cash from financing activities 712,023 1,558,746 2,960,464 (35,354) (37,021) (119,305)
----------------------------------------------------------------------------
Net change in cash 281,660 14,139 271,114 (374,267) 782,765 (1,132,748)
Cash: Beginning of period 157,337 438,997 453,136 724,250 349,983 1,132,748
----------------------------------------------------------------------------
Cash: End of period 438,997 453,136 724,250 349,983 1,132,748 0
----------------------------------------------------------------------------
JUL AUG SEP OCT NOV DEC
Net Income 792,189 1,052,156 983,784 1,008,451 720,043 226,267
Adjustments to reconcile net income to net
cash provided by operating activities:
Amortization of other assets 275 275 275 275 275 275
Depreciation 343,480 343,480 348,242 347,639 352,400 352,400
Deferred income taxes 0 0 0 0 0 0
Changes in Working Capital:
Accounts Receivable (81,359) (168,357) 260,743 63,978 345,268 1,552,110
Inventories (10,750) (160,750) (461,988) (10,750) (135,750) (169,024)
Prepaid Expenses (8,200) 1,800 (8,200) (3,200) (3,200) (186)
Investment & advances to subsidiaries 0 0 0 0 0 0
Other assets 0 0 0 0 0 0
Accounts Payable 64,625 (143,627) (605,969) (67,856) (207,608) (727,785)
Accrued Expenses (1,198) 435,783 (1,047,054) 207,958 1,415 (1,459,525)
-------------------------------------------------------------------------
Net cash from operating activities 1,099,062 1,360,760 (510,167) 1,546,493 1,072,843 (225,448)
-------------------------------------------------------------------------
Cash Flows from Investing Activities:
Capital Expenditures (412,833) (412,833) (114,933) (112,833) (12,833) (12,833)
-------------------------------------------------------------------------
Net cash from Investing activities (412,833) (412,833) (114,933) (112,833) (12,833) (12,833)
-------------------------------------------------------------------------
Cash Flows from Financing Activities
Proceeds from revolving line of credit 0 0 0 0 0 0
Proceeds from term loans 0 0 0 0 0 0
Proceeds from note payable - Cedar Bay 0 0 0 0 0 0
Proceeds from equipment lease 0 0 0 0 0 0
Repayments of revolving line of credit (50,000) (50,000) (50,000) (90,000) (100,000) (99,000)
Repayments of term loans 0 0 (210,000) 0 0 (210,000)
Repayments of note payable -Cedar Bay 0 0 (440,000) 0 0 0
Repayments of equipment lease (136,957) (139,255) (141,911) (141,911) (142,253) (143,918)
Change in checks written in excess of bank balance (127,966) 0 337,386 (337,388) 0 0
-------------------------------------------------------------------------
Net cash from financing activities (316,943) (169,255) (502,858) (569,299) (242,253) (452,918)
-------------------------------------------------------------------------
Net change in cash 369,286 756,672 (1,127,958) 864,361 817,757 (691,199)
Cash: Beginning of period 0 369,266 1,127,958 0 664,361 1,682,118
Cash: End of period 369,286 1,127,958 0 864,361 1,662,118 990,919
4
MEDERER CORPORATION
PROJECTED INCOME STATEMENT
FOR THE YEAR ENDING 1997
DRAFT - UNAUDITED
(Actual) (Actual)
JAN FEB MAR APR MAY JUN JUL AUG SEP
▇▇▇▇▇:
Trolli - Bulk 1,314,524 1,455,559 1,550,785 1,561,402 1,581,402 1,581,402 1,615,782 1,603,521 1,594,560
Trolli - Branded 1,201,549 1,068,664 1,438,229 1,465,993 1,638,851 1,638,851 1,520,776 1,532,594 1,536,891
Trolli Export - Bulk 137,206 223,690 348,146 348,146 386,829 386,829 386,829 386,829 386,829
Trolli Export - Branded 466,199 688,145 685,883 755,863 837,070 837,070 837,070 837,070 837,070
Private Label Sales 638,240 962,298 1,044,274 1,002,084 1,068,735 1,360,721 1,373,911 1,590,267 1,111,682
Other Sales 2,730 11,174 0 0 0 0 0 0 0
-------------------------------------------------------------------------------------------------
TOTAL SALES 3,760,448 4,399,530 5,067,277 5,153,488 5,512,886 5,804,872 5,734,368 5,950,281 5,467,032
COST OF GOODS SOLD
Cost of Raw Materials 2,030,929 2,159,040 2,860,168 2,909,013 3,110,914 3,271,506 3,230,681 3,349,422 3,083,521
Labor 361,373 478,725 498,372 504,120 476,458 467,566 491,527 448,785 458,351
Direct Labor Applied 0 0 102,453 (48,427) 6,201 22,656 (7,656) 29,380 (3,862)
Outside Labor 1,415 4,554 2,869 3,156 3,012 3,012 3,156 3,012 3,012
USDA Sugar Rebate (8,345) (19,473) (25,037) (26,171) (29,034) (29,034) (29,034) (29,034) (29,034)
Obsolete ???. Write-off 12,500 12,500 12,500 12,500) 12,500 12,500 12,500 12,500 12,500
--------------------------------------------------------------------------------------------------
TOTAL COST OF GOODS SOLD 2,420,871 2,635,348 3,451,325 3,354,191 3,580,051 3,748,206 3,701,174 3,814,065 3,524,48
--------------------------------------------------------------------------------------------------
GROSS MARGIN 1,339,577 1,764,184 1,615,952 1,799,297 1,932,835 2,056,666 2,033,194 2,136,216 1,842,544
DIRECT SELLING EXP.
Royalty 16,317 24,085 24,005 0 0 0 0 0 0
Commissions 2,964 11,438 8,798 10,548 11,650 11,650 11,650 11,650 11,660
Customer Rebates 4,287 6,101 0 0 0 0 0 0 0
Billbacks 9,158 19,468 63,351 63,361 70,390 70,390 105,390 105,390 70,390
Foreign Out to Customer 0 0 0 0 0 0 0 0 0
Spoils, Shorts & Return 0 2,742 834 833 833 834 833 833 834
AUR Cash Discounts 7,638 7,793 3,230 3,229 3,229 3,230 3,229 3,229 3,230
--------------------------------------------------------------------------------------------------
TOTAL DIRECT SELLING EXP. 40,364 71,627 100,218 77,961 86,102 86,104 121,102 121,102 86,104
--------------------------------------------------------------------------------------------------
GROSS PROFIT 1,299,213 1,692,5?7 1,515,734 1,721,336 1,846,733 1,970,562 1,912,092 2,015,114 1,856,440
OPERATING EXPENSES
Utilities 51,449 69,286 65,099 68,301 68,195 66,205 71,290 65,205 68,195
Telephone 8,338 11,590 5,748 8,498 6,054 6,907 6,791 4,991 7,122
Building Rent 4,290 6,114 3,757 2,757 2,757 2,757 2,757 2,757 2,757
Equipment Rental 3,243 2,399 3,241 3,242 3,241 3,242 3,241 3,242 3,241
Insurance Expense 16,392 5,367 9,038 9,007 9,038 9,037 9,038 9,037 9,038
Property Taxes 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000 29,000
Repair & Maintenance 72,771 81,708 64,000 72,000 72,000 72,000 72,000 72,000 72,000
Building Repairs & Maint. 58 1,488 2,084 833 833 2,084 833 834 2,084
Prev. Maint. Contracts 858 0 7,437 7,437 7,437 7,436 7,437 7,436 7,437
Plant Supplies 36,084 37,66? 39,665 43,296 41,461 41,481 40,296 38,481 38,481
Safety Supplies 2,469 1,253 414 414 414 414 414 414 414
Miscellaneous Freight 2,700 2,896 3,450 5,407 3,230 3,220 2,484 4,409 5,600
Outside Services 10,223 21,926 8,559 8,846 8,702 8,703 8,846 8,702 6,703
OCT NOV DEC TOTALS
▇▇▇▇▇:
Trolli - Bulk 1,597,846 1,568,462 889,314 17,934,538
Trolli - Branded 1,497,638 1,065,374 845,431 16,430,840
Trolli Export - Bulk 386,829 232,097 232,097 3,842,356
Trolli Export - Branded 837,070 497,242 497,243 8,612,975
Private Label Sales 1,377,689 1,148,764 785,952 13,464,617
Other Sales 0 0 0 13,904
--------------------------------------------
TOTAL SALES 5,697,071 4,501,939 3,250,037 60,299,229
COST OF GOODS SOLD
Cost of Raw Materials 3,209,162 2,540,294 1,829,986 33,587,636
Labor 479,186 409,529 368,576 5,462,568
Direct Labor Applied (34,790) (19,253) (60,223) (13,521)
Outside Labor 3,299 2,582 2,151 35,230
USDA Sugar Rebate (29,034) (17,339) (17,339) (287,909)
Obsolete ???. Write-off 12,500 12,500 12,500 150,000
--------------------------------------------
TOTAL COST OF GOODS SOLD 3,640,323 2,928,313 2,135,651 38,934,004
--------------------------------------------
GROSS MARGIN 2,056,748 1,573,626 1,114,386 21,365,225
DIRECT SELLING EXP.
Royalty 0 0 0 64,407
Commissions 11,650 6,865 6,865 117,378
Customer Rebates 0 0 0 10,388
Billbacks 70,390 42,234 42,234 732,136
Foreign Out to Customer 0 0 0 0
Spoils, Shorts & Return 833 833 834 11,076
AUR Cash Discounts 3,229 3,229 3,230 47,725
--------------------------------------------
TOTAL DIRECT SELLING EXP. 86,102 53,161 53,163 983,110
--------------------------------------------
GROSS PROFIT 1,970,646 1,520,465 1,061,223 20,382,115
OPERATING EXPENSES
Utilities 71,397 61,896 55,598 781,116
Telephone 6,738 8,027 6,909 87,713
Building Rent 2,757 2,757 2,757 38,974
Equipment Rental 3,242 3,241 3,242 38,057
Insurance Expense 9,037 9,038 9,037 112,134
Property Taxes 29,000 29,000 29,000 348,000
Repair & Maintenance 72,000 72,000 72,000 846,479
Building Repairs & Maint. 833 833 2,083 14,880
Prev. Maint. Contracts 7,436 7,437 7,436 75,224
Plant Supplies 42,112 34,387 30,589 464,022
Safety Supplies 414 414 414 7,862
Miscellaneous Freight 4,190 3,550 3,435 44,571
Outside Services 8,989 8,272 7,842 118,313
5
MEDERER CORPORATION
PROJECTED INCOME STATEMENT
FOR THE YEAR ENDING 1997
DRAFT - UNAUDITED
(Actual) (Actual)
JAN FEB MAR APR MAY JUN JUL AUG
Consulting Fees 15,295 (2,275) 25,350 25,650 21,450 21,450 21,450 21,450
Training Expenses 4,431 3,490 12,295 12,696 13,745 12,296 12,696 12,296
Legal Fees 11,794 2,574 3,000 3,000 3,000 3,000 3,000 3,000
Accounting Services 10,704 (19,961) 6,383 6,383 12,863 6,383 18,383 18,383
Administrative Fees 1,500 1,509 1,725 1,725 1,725 1,725 1,725 1,725
Board of Directors Fees 12,000 12,000 12,000 0 0 0 0 0
Salaries/Wages 150,878 123,003 139,568 152,289 152,789 146,630 161,037 148,335
Indirect Labor 101,205 108,810 127,331 127,241 127,359 121,750 133,859 122,470
Bonuses 12,206 18,500 17,414 17,413 17,414 17,413 17,414 17,413
Employment Tax & Benefits 144,665 106,316 117,062 118,144 116,075 114,493 118,357 112,494
Workers Compensation 30,054 29,289 32,500 32,501 32,501 32,500 32,501 32,501
Office Supplies 7,142 3,409 3,882 4,039 4,039 3,882 4,197 3,883
Computer Service & Maint. 161 3,042 253 254 254 253 254 254
Postage Expense 488 599 451 473 473 451 494 451
Bank Service Charge 4,247 2,045 1,528 4,528 1,605 1,605 4,605 1,605
Charitable Donations 1,000 250 1,084 1,803 1,083 1,804 1,083 1,084
Misc. Tax Expense 4,957 0 285 286 286 285 285 286
Travel Expenses 10,477 20,510 23,468 22,919 25,578 25,417 25,008 24,417
Vehicle Expenses 2,547 1,696 1,548 1,571 1,560 1,810 1,571 1,560
Advertising 844 751 833 834 833 833 834 833
Promotional Expenses 0 0 0 0 0 0 0 0
Moving Expenses 0 2,500 625 625 625 625 625 625
Membership/Subscriptions 1,235 481 304 303 358 303 304 359
Product Development (190) 4,577 2,583 2,584 2,584 2,584 2,583 2,583
Samples Expenses 568 4,563 2,637 810 2,672 335 330 353
Fines & Penalties 0 0 0 0 0 0 0 0
Miscellaneous Expenses 1,650 1,708 1,875 1,875 1,876 1,876 1,876 1,876
Jobs Training Expenses 0 0 (12,500) (12,500) (12,500) (12,500) (12,500) (12,500)
Bad Debt Write - Off 0 0 2,500 2,500 2,500 2,500 2,500 2,500
Overhead Applied 0 0 256,153 (121,078) 15,504 56,846 (19,142) 73,456
----------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 767,733 681,085 1,023,649 667,218 800,633 817,115 789,756 840,200
Depreciation Expenses 235,408 240,765 250,288 322,968 333,041 334,827 339,025 339,025
Amortization Expenses 194 194 275 275 275 275 275 275
----------------------------------------------------------------------------------------
TOTAL DEPRECIATION/AMORT. 235,602 240,959 250,563 323,243 333,316 335,102 339,300 339,300
----------------------------------------------------------------------------------------
TOTAL OPERATING INCOME 295,878 770,513 241,522 730,875 712,784 818,345 783,036 836,614
OTHER INCOME (EXPENSES)
Interest Income 14 23 0 0 0 0 0 0
Interest Expenses (107,352) (92,602) (109,414) (143,789) (143,324) (142,856) (142,385) (141,911)
AP Cash Discounts 4,621 1,169 7,500 7,500 7,500 7,500 7,500 7,500
Currency Exch Gain (Loss) 25,498 (24,011) (1,667) (1,666) (1,666) (1,666) (1,666) (1,667)
Warehouse Management Fee 15,993 15,993 15,993 15,993 15,993 15,993 15,993 15,993
Misc. Income (Expenses) (26,010) 13,442 0 0 0 0 0 0
----------------------------------------------------------------------------------------
TOTAL OTHER INC./EXP. (87,236) (85,966) (87,588) (121,962) (121,497) (121,029) (120,558) (120,085)
----------------------------------------------------------------------------------------
NET INC. BEFORE TAXES 208,642 684,527 153,934 608,913 591,287 697,316 662,478 715,529
INCOME TAXES 101,074 213,541 49,259 194,852 189,212 223,141 211,993 228,969
----------------------------------------------------------------------------------------
TOTAL NET PROFIT/(LOSS) 107,568 470,986 104,675 414,061 402,075 474,175 450,485 486,560
========================================================================================
SEP OCT NOV DEC TOTALS
Consulting Fees 21,450 21,450 18,400 18,400 229,520
Training Expenses 12,296 12,696 12,146 12,146 133,232
Legal Fees 3,000 3,000 3,000 3,000 44,368
Accounting Services 6,383 6,863 6,383 6,383 85,533
Administrative Fees 1,725 1,725 1,725 1,725 20,259
Board of Directors Fees 0 0 0 0 36,000
Salaries/Wages 155,599 162,579 142,899 163,004 1,798,610
Indirect Labor 128,585 134,679 117,338 119,237 1,470,864
Bonuses 17,414 17,413 17,414 17,413 204,841
Employment Tax & Benefits 113,927 115,995 108,039 106,385 1,391,962
Workers Compensation 32,500 32,501 32,501 32,501 384,350
Office Supplies 4,039 4,197 3,724 4,197 50,630
Computer Service & Maint. 253 254 254 254 5,740
Postage Expense 472 494 430 493 5,769
Bank Service Charge 1,605 4,605 1,297 1,297 30,572
Charitable Donations 1,804 1,803 1,803 1,803 12,084
Misc. Tax Expense 285 286 285 285 7,811
Travel Expenses 27,167 24,618 17,643 16,179 263,401
Vehicle Expenses 1,560 1,583 1,525 1,740 20,271
Advertising 833 833 834 833 9,928
Promotional Expenses 0 0 0 0 0
Moving Expenses 625 625 625 625 8,750
Membership/Subscriptions 303 12,804 359 304 17,417
Product Development 2,583 2,583 2,583 2,583 30,220
Samples Expenses 515 789 402 402 14,396
Fines & Penalties 0 0 0 0 0
Miscellaneous Expenses 1,874 1,875 1,874 1,875 22,110
Jobs Training Expenses (12,500) (12,500) (12,500) (12,500) (125,000)
Bad Debt Write - Off 2,500 2,500 2,500 2,500 25,000
Overhead Applied (9,655) (66,982) (48,135) (150,573) (33,805)
---------------------------------------------------------------
TOTAL OPERATING EXPENSES 770,494 726,693 675,479 582,113 9,142,168
Depreciation Expenses 343,787 341,378 346,140 346,140 3,772,792
Amortization Expenses 275 276 275 275 3,139
---------------------------------------------------------------
TOTAL DEPRECIATION/AMORT. 344,062 341,664 346,415 346,515 3,775,931
---------------------------------------------------------------
TOTAL OPERATING INCOME 741,884 902,299 498,571 132,695 7,464,016
OTHER INCOME (EXPENSES)
Interest Income 0 0 0 0 37
Interest Expenses (141,433) (140,952) (140,468) (139,980) (1,586,466)
AP Cash Discounts 7,500 7,500 7,500 7,500 80,790
Currency Exch Gain (Loss) (1,667) (1,667) (1,667) (1,667) (15,179)
Warehouse Management Fee 15,993 15,992 15,993 15,993 191,915
Misc. Income (Expenses) 0 0 0 0 (12,568)
---------------------------------------------------------------
TOTAL OTHER INC./EXP. (199,607) (199,127) (118,154) (118,154) (1,341,471)
---------------------------------------------------------------
NET INC. BEFORE TAXES 622,277 783,172 379,929 14,541 6,122,545
INCOME TAXES 199,129 250,615 121,577 4,653 1,988,015
---------------------------------------------------------------
TOTAL NET PROFIT/(LOSS) 423,148 532,557 258,352 9,888 4,134,530
===============================================================
6
MEDERER CORPORATION
PROJECTED BALANCE SHEET
FOR THE YEAR ENDING 1997
DRAFT - UNAUDITED (Actual) (Actual)
JAN FEB MAR APR MAY JUN
ASSETS
CURRENT ASSETS
Cash 204,950 258,982 870,943 129,465 476,541 (200,805)
Accounts Receivable
Trade 1,333,565 1,372,449 1,888,970 2,061,140 2,159,538 2,482,739
Related Parties 149,963 190,864 390,849 390,849 400,158 400,158
Other 157,964 110,871 148,100 148,100 148,100 148,100
Short Term Loan 68,610 74,430 0 0 0 0
Inventory
Raw Materials 3,892,473 3,953,797 3,796,566 3,726,568 3,656,566 3,586,566
Finished Goods 566,858 661,270 518,358 494,108 469,858 445,608
Spares 636,378 670,502 637,979 638,779 639,579 640,379
Prepaid Expenses 93,533 96,791 82,676 80,076 77,476 74,876
-------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 7,104,294 7,391,956 8,334,441 7,669,083 6,027,816 7,577,621
PLANT, PROPERTY AND EQUIPMENT
Building & Leasehold Improvements 8,102,740 8,102,740 8,102,740 8,102,740 8,102,740 8,102,740
Equipment & Equipment Deposits 31,017,482 31,172,737 32,436,318 33,749,753 34,372,5?6 34,905,419
-------------------------------------------------------------------------------------------
39,120,222 39,275,477 40,539,059 41,852,4?3 42,475,326 43,008,15?
Less: Accumulated Depreciation (13,920,095) (14,160,660) (14,411,148) (14,734,116) (15,067,157) (15,401,984)
-------------------------------------------------------------------------------------------
TOTAL PLANT, PROPERTY AND EQUIPMENT 25,200,127 25,114,617 26,127,911 27,118,377 27,408,169 27,606,175
OTHER ASSETS
Investment In Subsidiary 3,996,212 3,982,524 3,982,524 3,982,524 3,982,524 3,982,524
Other 73,650 73,650 73,650 73,650 73,650 73,650
Less: Accumulated Amortization (1,165) (1,359) (1,634) (1,909) (2,184) (2,459)
-------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 4,068,697 4,054,815 4,054,540 4,054,265 4,053,990 4,053,715
-------------------------------------------------------------------------------------------
TOTAL ASSETS 36,373,118 36,561,388 38,516,892 38,841,725 39,489,975 39,237,511
===========================================================================================
JUL AUG SEP OCT NOV DEC
ASSETS
CURRENT ASSETS
Cash 97,104 612,346 (533,828) 80,509 248,840 (571,233)
Accounts Receivable
Trade 2,662,344 2,908,812 2,711,392 2,755,279 2,393,817 1,600,313
Related Parties 391,372 391,549 391,899 388,725 360,013 348,489
Other 148,100 148,100 148,100 148,100 148,100 148,000
Short Term Loan 0 0 0 0 0 0
Inventory
Raw Materials 3,516,566 3,446,566 3,376,566 3,306,566 3,236,566 3,156,000
Finished Goods 421,358 397,108 372,858 348,608 324,358 300,000
Spares 641,179 641,979 642,779 643,579 644,379 645,400
Prepaid Expenses 72,276 69,676 67,076 64,476 61,876 59,600
-------------------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 7,970,299 8,616,136 7,176,842 7,735,842 7,417,949 5,886,669
PLANT, PROPERTY AND EQUIPMENT
Building & Leasehold Improvements 8,102,740 8,102,740 8,102,740 8,102,740 8,102,740 8,102,740
Equipment & Equipment Deposits 35,318,252 35,731,085 35,843,918 35,958,751 35,969,584 35,982,417
-------------------------------------------------------------------------------------------
43,420,992 43,833,825 43,846,658 44,059,491 44,072,324 44,085,157
Less: Accumulated Depreciation (15,741,009) (16,080,034) (16,423,821) (16,765,199) (17,111,339) (17,457,479)
--------------------------------------------------------------------------------------------
TOTAL PLANT, PROPERTY AND EQUIPMENT 27,679,983 27,753,791 27,522,837 27,294,292 26,960,985 26,627,678
OTHER ASSETS
Investment In Subsidiary 3,982,524 3,982,524 3,982,524 3,982,524 3,982,524 3,982,524
Other 73,650 73,650 73,650 73,650 73,650 73,650
Less: Accumulated Amortization (2,734) (3,009) (3,284) (3,559) (3,834) (4,109)
--------------------------------------------------------------------------------------------
TOTAL OTHER ASSETS 4,053,440 4,053,165 4,052,800 4,052,615 4,052,340 4,052,065
--------------------------------------------------------------------------------------------
TOTAL ASSETS 39,703,722 40,423,092 38,752,569 39,082,749 38,431,274 36,586,412
============================================================================================
7
MEDERER CORPORATION
PROJECTED BALANCE SHEET
FOR THE YEAR ENDING 1997
DRAFT - UNAUDITED (Actual) (Actual)
JAN FEB MAR APR MAY JUN JUL AUG
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts Payable
Trade 6,327,566 6,438,639 4,948,246 5,076,021 5,007,039 4,9??,097 5,267,031 5,195,241
Related Parties 6,917,147 6,158,244 6,375,763 6,457,055 6,427,063 6,979,2?? 6,879,122 6,905,247
Accrued Expenses 5,471,396 3,741,710 3,630,678 3,619,497 3,585,433 3,15?,311 2,924,671 3,114,055
Income Tax Payable (28,229) 507,845 782,11? 530,356 968,590 360,071 620,636 898,982
Current Portion of Long
Term Debt
Note Payable-Norwest 3,613,000 5,506,000 3,813,000 3,913,000 4,013,000 4,113,000 4,063,000 4,013,000
Note Payable-Cedar
Bay 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000
Capital Leases 1,659,577 1,659,577 1,659,577 1,659,577 1,659,577 1,659,577 1,659,577 1,659,577
----------------------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 24,600,477 24,452,015 21,649,380 21,695,506 22,078,702 21,699,354 21,854,037 22,226,102
LONG TERM LIABILITIES
Notes Payable
Norwest 3,550,000 3,550,000 ?,340,000 ?,340,000 ?,340,000 ?,130,000 8,130,000 8,130,000
Cedar Bay 440,000 440,000 440,000 440,000 440,000 440,000 440,000 440,000
Capital Leases 3,828,706 3,694,452 3,557,916 3,422,562 3,285,541 3,148,250 3,009,293 2,870,038
Deferred Income Taxes 767,400 767,400 767,400 767,400 767,400 767,400 767,400 767,400
----------------------------------------------------------------------------------------------
TOTAL LONG TERM LIABILITIES 8,586,106 8,451,852 13,105,31? 12,969,962 12,832,941 12,485,650 12,346,693 12,207,438
----------------------------------------------------------------------------------------------
TOTAL LIABILITIES 33,186,583 32,903,867 34,754,69? 34,665,468 34,911,643 34,185,004 34,200,730 34,433,540
----------------------------------------------------------------------------------------------
STOCKHOLDERS EQUITY
Common Stock 22,500 22,500 22,500 22,500 22,500 22,500 22,500 22,500
Additional Paid in 727,500 727,500 727,500 727,500 727,500 727,500 727,500 727,500
Capital
Treasury Stock (7,915,500) (7,915,500) (7,915,500) (7,915,500) (7,915,500) (7,915,500) (7,915,500) (7,915,500)
Retained Earnings 10,244,467 10,244,467 10,244,467 10,244,467 10,244,467 10,244,467 10,244,467 10,244,467
Current Year's
Earnings 107,566 576,554 683,229 1,097,290 1,499,365 1,973,540 2,424,025 2,910,585
----------------------------------------------------------------------------------------------
TOTAL STOCKHOLDERS EQUITY 3,186,535 3,657,521 3,762,196 4,176,257 4,578,332 5,052,507 5,502,992 5,989,552
----------------------------------------------------------------------------------------------
TOTAL LIABILITIES AND
EQUITY 36,373,118 36,561,3?? 38,516,892 38,841,725 39.4??,975 39,237,511 39,703,722 40,423,092
==============================================================================================
DRAFT - UNAUDITED SEP OCT NOV DEC
LIABILITIES AND EQUITY
CURRENT LIABILITIES
Accounts Payable
Trade 4,689,537 4,655,663 4,568,100 3,910,581
Related Parties 7,130,979 6,982,126 6,336,232 6,943,993
Accrued Expenses 2,706,703 2,620,167 2,521,603 1,831,013
Income Tax Payable 332,881 631,678 796,125 114,641
Current Portion of Long
Term Debt
Note Payable-Norwest 3,963,000 3,873,000 3,773,000 3,674,000
Note Payable-Cedar
Bay 440,000 440,000 440,000 440,000
Capital Leases 1,659,577 1,659,577 1,659,577 1,659,577
---------------------------------------------------------
TOTAL CURRENT LIABILITIES 20,922,677 20,882,211 20,094,637 18,573,805
LONG TERM LIABILITIES
Notes Payable
Norwest 7,920,000 7,920,000 7,920,000 7,700,000
▇▇▇▇▇ ▇▇▇ ▇ ▇ ▇ ▇
▇▇▇▇▇▇▇ ▇▇▇▇▇▇ 2,729,792 2,587,881 2,445,628 2,301,710
Deferred Income Taxes 767,400 767,400 767,400 767,400
---------------------------------------------------------
TOTAL LONG TERM LIABILITIES 11,417,192 11,275,281 11,133,028 10,779,110
---------------------------------------------------------
TOTAL LIABILITIES 32,339,869 32,137,492 31,227,665 29,352,915
---------------------------------------------------------
STOCKHOLDERS EQUITY
Common Stock 22,500 22,500 22,500 22,500
Additional Paid in
Capital 727,500 727,500 727,500 727,500
Treasury Stock (7,915,500) (7,915,500) (7,915,500) (7,915,500)
Retained Earnings 10,244,467 10,244,467 10,244,467 10,244,467
Current Year's 3,333,733 3,856,290 4,124,642 4,134,530
Earnings
----------------------------------------------------------
TOTAL STOCKHOLDERS EQUITY 6,412,700 ?,945,257 7,203,609 7,213,497
----------------------------------------------------------
TOTAL LIABILITIES AND 38,752,569 39,082,749 38,431,274 36,586,412
EQUITY ==========================================================
TROLLI, INC.
PROJECTED INCOME STATEMENT
FOR THE YEAR ENDING 1997
DRAFT - UNAUDITED
(Actual) (Actual)
JAN FEB MAR APR MAY JUN JUL AUG SEP
SALES:
Trolli - Bulk 1,823,351 2,607,878 2,617,132 2,617,132 2,617,132 2,617,132 2,678,516 2,656,194 2,639,453
Less: Promo (155,792) (288,828) (272,182) (272,182) (272,182) (272,182) (278,585) (276,244) (274,503)
Trolli - Branded 1,856,657 2,301,808 3,004,355 3,004,355 3,297,574 3,297,574 3,020,893 3,026,406 3,037,431
Less: Promo (143,580) (262,034) (279,405) (279,405) (306,674) (306,674) (280,943) (281,456) (282,481)
Private Label 474,823 670,647 804,000 873,018 939,000 939,018 914,000 875,018 784,000
Less: Promo (25) (37) 0 0 0 0 0 0 0
Hi-Lites 6,662 4,775 9,489 14,204 16,591 21,307 23,693 23,693 13,605
Less: Promo (1,481) (2,141) (1,139) (1,704) (1,891) (2,557) (2,843) (2,843) (1,633)
----------------------------------------------------------------------------------------------------
TOTAL SALES 3,660,615 5,032,0?? 5,882,250 5,955,418 8,289,450 6,293,618 6,074,751 6,020,768 5,915,872
COST OF GOOD SOLD
Cost of Goods Sold 2,512,107 2,902,487 3,882,285 3,?30,576 4,151,037 4,153,788 4,009,335 3,973,707 3,904,476
Unsaleable Product 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500 7,500
Freight Into Warehouse 24,764 26,0?3 42,800 36,100 42,800 33,700 36,100 38,400 39,900
Warehouse Receiving Changes 4,066 4,714 6,900 5,800 7,000 5,500 5,900 6,200 5,000
----------------------------------------------------------------------------------------------------
TOTAL COSTS OF GOODS SOLD 2,548,457 2,940,784 3,939,485 3,980,076 4,208,337 4,200,488 4,058,835 4,025,807 3,947,876
----------------------------------------------------------------------------------------------------
GROSS MARGIN 1,312,158 2,091,284 1,942,765 1,975,342 2,081,113 2,093,130 2,015,915 1,994,961 1,967,997
DIRECT SELLING EXP.
Commissions 16?,936 280,469 246,174 249,101 262,462 262,629 253,674 251,715 247,519
Billbacks 18,508 33,335 60,?37 61,368 64,709 64,750 62,562 62,022 59,159
Customer Rebates 13,706 11,889 6,605 6,690 7,077 7,082 6,830 8,766 6,644
Special Promo Exchange 15,214 22,108 58,889 59,099 60,513 60,330 62,406 63,67? ?3,232
Freight Out 200,569 266,743 347,059 315,335 355,272 30?,357 317,742 329,653 285,537
Spoils, Shorts & Returns 10,677 11,451 23,529 23,822 25,158 25,174 24,299 24,083 23,663
Misc Distribution Expense 1,401 1,730 3,100 2,600 3,100 2,400 2,600 2,000 2,200
Warehouse Storage Charge 3,941 3,582 9,000 7,600 9,100 7,000 7,600 8,000 6,500
Royalty 59,958 71,392 95,373 0 0 0 0 0 0
A/R Cash Discounts 51,498 69,965 ?9,898 101,242 106,921 106,992 103,271 102,353 100,569
----------------------------------------------------------------------------------------------------
TOTAL DIRECT SELLING EXP. 544,408 774,644 950,385 826,857 894,312 845,714 841,184 651,068 795,023
----------------------------------------------------------------------------------------------------
GROSS PROFIT 67,750 1,316,640 992,400 1,148,485 1,186,801 1,247,416 1,174,731 1,143,893 1,172,974
OPERATING EXPENSES
Telephone 5,357 8,265 6,?03 6,816 6,955 6,285 7,011 6,804 6,899
Utilities 528 584 875 875 875 875 875 875 875
Office Rent 6,180 6,180 6,180 6,180 6,179 6,179 6,180 6,180 6,179
Equipment Rental 1,991 2,083 4,333 3,445 3,445 3,446 3,446 3,445 3,445
Auto Leases 1,694 1,728 1,670 1,670 1,670 1,670 1,670 1,670 1,670
Repairs & Maintenance 47 1,316 1,104 1,103 1,104 1,103 1,104 1,104 1,103
OCT NOV DEC TOTALS
SALES:
Trolli - Bulk 2,645,033 2,601,172 1,453,962 29,574,067
Less: Promo (275,083) (270,522) (151,212) (3,059,477)
Trolli - Branded 2,937,431 2,032,988 1,669,967 32,487,439
Less: Promo (273,181) (1?9,068) (155,307) (3,040,208)
Private Label 716,018 625,000 507,018 9,121,560
Less: Promo 0 0 0 (62)
Hi-Lites 16,591 14,205 11,818 176,633
Less: Promo (1,991) (1,705) (1,418) (23,446)
-----------------------------------------------
TOTAL SALES 5,764,818 4,812,070 3,334,828 65,236,528
COST OF GOOD SOLD
Cost of Goods Sold 3,804,780 3,175,968 2,200,988 42,601,530
Unsaleable Product 7,500 7,500 7,500 90,000
Freight Into Warehouse 34,400 23,300 17,800 387,147
Warehouse Receiving Changes 5,500 3,700 2,700 63,100
-----------------------------------------------
TOTAL COSTS OF GOODS SOLD 3,852,180 3,210,466 2,228,966 43,141,777
-----------------------------------------------
GROSS MARGIN 1,912,638 1,601,604 1,105,842 22,094,749
DIRECT SELLING EXP.
Commissions 236,035 195,748 135,026 2,789,688
Billbacks 58,555 48,665 33,620 627,890
Customer Rebates 6,574 5,512 3,832 89,207
Special Promo Exchange 52,862 48,983 38,644 607,156
Freight Out 298,434 220,574 160,733 3,409,000
Spoils, Shorts & Returns 23,059 19,248 13,339 247,502
Misc Distribution Expense 2,600 1,700 1,300 27,531
Warehouse Storage Charge 7,200 4,900 3,800 78,203
Royalty 0 0 0 226,723
A/R Cash Discount 98,002 81,805 56,692 1,079,30?
------------------------------------------------
TOTAL DIRECT SELLING EXP. 783,321 627,135 448,1?? 9,182,217
-----------------------------------------------
GROSS PROFIT 1,128,317 974,469 657,656 12,912,532
OPERATING EXPENSES
Telephone 6,816 6,548 6,548 79,007
Utilities 875 875 875 9,882
Office Rent 6,180 6,479 6,479 74,755
Equipment Rental 3,445 3,44? 3,445 39,3?5
Auto Leases 1,670 1,670 1,670 20,122
Repairs & Maintenance 1,104 1,104 1,104 12,400
9
TROLLI, INC.
PROJECTED INCOME STATEMENT
FOR THE YEAR ENDING 1997
DRAFT - UNAUDITED
(ACTUAL) (ACTUAL)
JAN FEB MAR APR MAY JUN JUL AUG SEP OCT
--- --- --- --- --- --- --- --- --- ---
Insurance Expense 2,574 2,574 2,574 2,573 2,574 2,574 2,574 2,573 2,574 2,574
Property Taxes 24 0 0 0 0 0 0 0 0 0
Outside Labor 158 0 842 300 300 842 300 300 843 300
Consulting Fees 0 1,000 0 0 2,500 3,000 3,500 3,500 3,500 3,000
Training Fees 1,733 52 2,600 4,250 4,000 2,600 2,600 4,000 2,600 2,600
Legal Fees 0 280 2,083 2,084 2,083 2,083 2,083 2,083 2,083 2,083
Accounting Fees 17,184 18,585 208 9,209 1,208 1,208 208 3,209 208 1,709
Administrative Fees 14,583 14,583 14,583 14,583 14,583 22,243 14,583 14,583 14,583 14,583
Office Salaries 37,672 33,420 41,673 48,672 48,672 48,673 48,822 48,822 52,094 52,093
Marketing Salaries 13,598 11,835 12,497 12,497 12,747 12,747 12,747 12,747 12,747 12,747
Sales Salaries 39,812 26,537 30,832 30,919 31,253 31,253 31,253 31,253 31,255 31,255
Bonus Expenses 0 0 0 0 0 0 0 0 0 0
Employment Taxes/Benefits 22,725 20,318 17,823 17,823 17,823 17,823 17,823 17,823 17,823 17,823
Employment Expense 571 (423) 500 10,500 500 500 500 500 12,500 500
Office Supplies 2,665 1,911 4,250 3,950 3,970 3,950 3,930 4,150 4,130 4,130
Computer Expense 595 828 2,613 2,613 2,613 2,613 2,613 2,613 2,613 2,613
Travel Expenses 28,568 21,627 26,334 21,822 20,159 27,016 22,182 21,930 18,860 21,666
Moving Expense 0 0 0 0 0 0 0 0 10,000 0
Postage Expense 3,339 4,388 2,503 2,503 2,502 2,502 2,502 2,502 2,502 2,502
Bank Service Charges 1,718 22 40 940 40 40 940 40 40 940
Charitable Contributions 18,000 0 100 100 100 100 100 100 100 100
Convention Expense 3,778 77,?11 0 0 0 50,350 0 0 0 16,500
Sales Meetings 0 0 0 3,155 0 0 8,250 0 0 82,970
Advertising 27,597 42,733 27,475 29,175 381,835 449,720 387,770 20,900 24,900 38,410
Market Research 0 4,850 10,000 5,000 20,000 0 5,000 0 0 5,000
Dues & Subscriptions 487 1,062 6,485 735 635 885 6?0 635 635 635
Sample Expense 5,543 19,835 18,711 7,035 7,035 8,817 7,035 7,035 7,038 8,816
Misc Licenses & Taxes 1,458 4,706 1,825 0 0 1,825 0 0 1,825 0
Miscellaneous Expense (2,401) (8,115) 200 200 200 200 200 200 200 200
Bad Debt Expense 0 0 12,500 0 0 12,500 0 0 12,500 0
---------------------------------------------------------------------------------------------------
TOTAL OPERATING EXPENSES 257,796 318,735 260,106 250,727 597,560 725,442 598,461 221,576 258,322 343,839
Depreciation Expense 5,095 4,201 4,455 4,455 4,455 4,455 4,455 4,455 4,455 6,260
---------------------------------------------------------------------------------------------------
TOTAL OPERATING INCOME 504,859 993,704 727,839 893,303 584,786 517,519 571,815 917,862 910,197 779,218
OTHER INCOME/(EXPENSE)
Interest Expense 0 0 0 0 0 0 0 0 0 0
Interest Income 0 0 0 0 0 0 0 0 0 0
Misc Income/ (Expense) 200 (5,145) 834 834 833 834 833 833 833 834
---------------------------------------------------------------------------------------------------
TOTAL OTHER INC./EXP. 200 (5,145) 834 834 833 834 833 833 833 834
---------------------------------------------------------------------------------------------------
NET INC. BEFORE TAXES 505,059 988,559 728,673 894,137 585,619 518,353 572,648 ?18,695 911,030 780,052
INCOME TAXES 178,381 349,154 299,9?4 315,630 206,724 182,979 202,145 324,29? 321,593 275,358
---------------------------------------------------------------------------------------------------
TOTAL NET PROFIT/(LOSS) 326,678 639,405 426,679 578,507 378,895 335,374 370,503 594,396 589,436 504,694
===================================================================================================
NOV DEC TOTALS
--- --- ------
Insurance Expense 2,574 2,574 30,888
Property Taxes 2,500 0 2,524
Outside Labor 300 843 5,328
Consulting Fees 3,000 3,000 28,000
Training Fees 2,600 2,600 32,235
Legal Fees 2,084 2,084 21,093
Accounting Fees 208 208 53,352
Administrative Fees 14,583 14,583 182,656
Office Salaries 52,367 52,722 565,702
Marketing Salaries 12,747 12,747 152,403
Sales Salaries 31,255 31,255 378,132
Bonus Expenses 0 0 0
Employment Taxes/Benefits 17,822 17,822 221,271
Employment Expenses 500 500 27,148
Office Supplies 4,150 4,130 45,338
Computer Expense 2,613 2,613 27,653
Travel Expenses 18,815 22,558 271,537
Moving Expense 0 0 10,000
Postage Expense 2,502 2,506 32,753
Bank Service Charges 40 40 4,838
Charitable Contributions 100 100 19,000
Convention Expense 0 0 148,539
Sales Meetings 0 0 94,375
Advertising 10,900 57,900 1,497,315
Market Research 0 0 49,850
Dues & Subscriptions 735 635 14,034
Sample Expenses 8,223 8,222 113,343
Misc Licenses & Taxes 0 1,825 13,484
Miscellaneous Expense 200 200 (8,516)
Bad Debt Expense 0 12,500 50,000
---------------------------------
TOTAL OPERATING EXPENSES 210,940 274,288 4,317,792
Depreciation Expense 6,260 6,260 59,261
---------------------------------
TOTAL OPERATING INCOME 757,269 377,108 8,535,479
OTHER INCOME/(EXPENSE)
Interest Expense 0 0 0
Interest Income 0 0 0
Misc Income/ (Expense) 833 833 3,389
---------------------------------
TOTAL OTHER INC./EXP. 833 833 3,389
---------------------------------
NET INC. BEFORE TAXES 758,102 377,941 8,538,868
INCOME TAXES 267,610 133,413 3,057,281
---------------------------------
TOTAL NET PROFIT/(LOSS) 490,492 244,528 5,481,587
================================
10
TROLLI, INC.
PROJECTED BALANCE SHEET
FOR THE YEAR ENDING 1997
DRAFT - UNAUDITED (Actual) (Actual)
JAN FEB MAR APR MAY JUN JUL
--- --- --- --- --- --- ---
ASSETS
CURRENT ASSETS
Cash 234,047 194,154 (146,683) 220,518 656,207 72,619 272,182
Accounts Receivable
Trade 3,166,484 4,397,289 4,328,849 4,458,217 4,665,231 4,700,750 4,502,504
Related Parties 6,817,483 6,515,139 6,069,776 6,081,049 5,820,398 6,398,990 6,543,373
Other 0 2,287 0 0 0 0 0
Short Term Loan 18,764 46,344 0 0 0 0 0
Inventory
Raw Materials 0 0 0 0 0 0 0
Finished Goods 2,273,788 2,390,646 3,349,099 3,449,099 3,499,099 3,824,099 3,974,099
Spares 0 0 0 0 0 0 0
Prepaid Expenses 50,189 45,248 12,385 12,385 12,385 2,385 12,385
-----------------------------------------------------------------------------------
TOTAL CURRENT ASSETS 12,580,735 13,591,107 13,613,416 14,221,268 14,653,320 14,999,043 15,384,543
PLANT, PROPERTY AND EQUIPMENT
Building & leasehold Improvements 0 0 0 0 0 0 0
Equipment & Equipment Deposits 413,427 416,167 448,681 448,681 448,681 450,531 450,531
-----------------------------------------------------------------------------------
413,427 418,167 448,681 448,681 448,681 450,531 450,531
Less: Accumulated Depreciation (149,437) (153,638) (158,093) (162,548) (167,003) (171,458) (175,913)
-----------------------------------------------------------------------------------
TOTAL PLANT, PROPERTY AND EQUIPMENT 263,990 264,528 290,588 266,133 281,678 279,073 274,618
OTHER ASSETS
Investment in Subsidiary 1,034,263 1,044,990 1,044,990 1,044,990 1,044,990 1,044,990 1,044,990
Other 0 0 0 0 0 0 0
Less: Accumulated Amortization 0 0 0 0 0 0 0
-----------------------------------------------------------------------------------
TOTAL OTHER ASSETS 1,034,263 1,044,990 1,044,990 1,044,990 1,044,990 1,044,990 1,044,990
-----------------------------------------------------------------------------------
TOTAL ASSETS 13,858,988 14,900,626 14,948,994 15,552,391 15,979,988 16,323,106 16,704,151
===================================================================================
AUG SEP OCT NOV DEC
--- --- --- --- ---
ASSETS
CURRENT ASSETS
Cash 515,612 196,440 783,852 1,433,278 1,562,152
Accounts Receivable
Trade 4,524,393 4,441,070 4,333,205 4,349,399 3,390,793
Related Parties 6,639,448 6,940,218 6,819,432 6,233,238 6,676,690
Other 0 0 0 0 0
Short Term Loan 0 0 0 0 0
Inventory
Raw Materials 0 0 0 0 0
Finished Goods 4,274,099 4,875,337 5,025,337 5,300,337 5,618,235
Spares 0 0 0 0 0
Prepaid Expenses 12,385 22,385 27,385 32,385 33,826
--------------------------------------------------------------------
TOTAL CURRENT ASSETS 15,965,937 16,475,450 16,989,211 17,348,637 17,483,686
PLANT, PROPERTY AND EQUIPMENT
Building & leasehold Improvements 0 0 0 0 0
Equipment & Equipment Deposits 450,531 452,631 452,631 452,631 452,631
--------------------------------------------------------------------
450,531 452,631 452,631 452,631 452,631
Less: Accumulated Depreciation (180,366) (184,823) (191,083) (107,343) (203,603)
--------------------------------------------------------------------
TOTAL PLANT, PROPERTY AND EQUIPMENT 270,163 267,808 261,548 255,288 249,028
OTHER ASSETS
Investment in Subsidiary 1,044,990 1,044,990 1,044,990 1,044,990 1,044,990
Other 0 0 0 0 0
Less: Accumulated Amortization 0 0 0 0 0
--------------------------------------------------------------------
TOTAL OTHER ASSETS 1,044,990 1,044,990 1,044,990 1,044,990 1,044,990
--------------------------------------------------------------------
TOTAL ASSETS 17,281,090 17,788,248 18,295,749 18,648,915 18,777,714
====================================================================
11
TROLLI, INC.
PROJECTED BALANCE SHEET
FOR THE YEAR ENDING 1997
DRAFT - UNAUDITED (Actual) (Actual)
JAN FEB MAR APR MAY JUN
Liabilities and Equity
Current Liabilities
Accounts Payable
Trade 106,503 177,711 356,414 389,681 394,866 407,518
Related Parties 306,096 579,222 258,216 258,216 267,525 267,525
Accrued Expenses 738,388 783,242 1,040,193 1,050,193 1,075,193 1,065,193
Income Tax Payable 735,172 748,216 253,257 234,860 244,068 229,160
Current Portion of Long Term Debt
Note Payable - Norwest 0 0 0 0 0 0
Note Payable - Cedar Bay 0 0 0 0 0 0
Capital Leases 0 0 0 0 0 0
--------------------------------------------------------------------------------------
Total Current Liabilities 1,886,159 2,288,391 1,908,080 1,932,970 1,981,672 1,989,416
Long Term Liabilities
Notes Payable
Norwest 0 0 0 0 0 0
Cedar Bay 0 0 0 0 0 0
Capital Leases 0 0 0 0 0 0
Deferred Income Taxes (78,400) (78,400) (78,400) (78,400) (78,400) (78,400)
--------------------------------------------------------------------------------------
Total Long Term Liabilities (78,400) (78,400) (78,400) (78,400) (78,400) (78,400)
--------------------------------------------------------------------------------------
Total Liabilities 1,807,759 2,208,991 1,629,680 1,854,570 1,903,272 1,911,016
--------------------------------------------------------------------------------------
Stockholders Equity
Common Stock 1,000 1,000 1,000 1,000 1,000 1,000
Additional Paid in Capital 2,499,000 2,499,000 2,499,000 2,499,000 2,499,000 2,499,000
Treasury Stock 0 0 0 0 0 0
Retained Earnings 9,224,552 9,224,552 9,224,552 9,224,552 9,224,552 9,224,552
Current Year's Earnings 326,677 966,063 1,394,762 1,973,269 2,352,164 2,667,538
--------------------------------------------------------------------------------------
Total Stockholders Equity 12,051,229 12,690,635 13,119,314 13,697,621 14,076,716 14,412,090
--------------------------------------------------------------------------------------
Total Liabilities and Equity 13,658,988 14,900,626 14,848,994 15,552,391 15,979,988 16,323,106
======================================================================================
JUL AUG SEP OCT NOV DEC
Liabilities and Equity
Current Liabilities
Accounts Payable
Trade 437,769 435,882 410,655 404,741 344,395 311,819
Related Parties 258,739 258,916 259,266 256,092 227,380 215,856
Accrued Expenses 1,065,193 1,035,193 995,193 995,193 935,193 762,070
Income Tax Payable 238,257 252,510 235,109 247,004 258,736 360,230
Current Portion of Long Term Debt
Note Payable - Norwest 0 0 0 0 0 0
Note Payable - Cedar Bay 0 0 0 0 0 0
Capital Leases 0 0 0 0 0 0
--------------------------------------------------------------------------------------
Total Current Liabilities 1,999,958 1,982,501 1,900,223 1,903,030 1,765,704 1,649,975
Long Term Liabilities
Notes Payable
Norwest 0 0 0 0 0 0
Cedar Bay 0 0 0 0 0 0
Capital Leases 0 0 0 0 0 0
Deferred Income Taxes (78,400) (78,400) (78,400) (78,400) (78,400) (78,400)
--------------------------------------------------------------------------------------
Total Long Term Liabilities (78,400) (78,400) (78,400) (78,400) (78,400) (78,400)
--------------------------------------------------------------------------------------
Total Liabilities 1,921,558 1,904,101 1,621,823 1,824,630 1,667,304 1,571,575
--------------------------------------------------------------------------------------
Stockholders Equity
Common Stock 1,000 1,000 1,000 1,000 1,000 1,000
Additional Paid in Capital 2,499,000 2,499,000 2,499,000 2,499,000 2,499,000 2,499,000
Treasury Stock 0 0 0 0 0 0
Retained Earnings 9,224,552 9,224,552 9,224,552 9,224,552 9,224,552 9,224,552
Current Year's Earnings 3,058,041 3,652,437 4,241,873 4,746,567 5,237,059 5,481,587
--------------------------------------------------------------------------------------
Total Stockholders Equity 14,782,593 15,376,989 15,966,425 16,471,119 16,961,611 17,206,139
--------------------------------------------------------------------------------------
Total Liabilities and Equity 16,704,151 17,261,090 17,788,246 18,295,749 18,648,915 18,777,714
======================================================================================
12