Exhibit 99.2
Guitar Center, Inc. and Subsidiaries
Consolidated Unaudited Balance Sheets
(in thousands, except per share data)
|
| March 31, |
| December 31, |
| ||
Assets |
|
|
|
|
| ||
Current assets: |
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 18,961 |
| $ | 5,350 |
|
Accounts receivable, net |
| 20,358 |
| 23,814 |
| ||
Merchandise inventories |
| 289,708 |
| 288,873 |
| ||
Prepaid expenses and deposits |
| 9,992 |
| 11,543 |
| ||
Deferred income taxes |
| 5,631 |
| 5,631 |
| ||
Total current assets |
| 344,650 |
| 335,211 |
| ||
|
|
|
|
|
| ||
Property and equipment, net |
| 92,779 |
| 93,347 |
| ||
Goodwill |
| 25,995 |
| 25,995 |
| ||
Deposits and other assets, net |
| 6,237 |
| 6,318 |
| ||
|
| $ | 469,661 |
| $ | 460,871 |
|
|
|
|
|
|
| ||
Liabilities and stockholders’ equity |
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
| ||
Accounts payable |
| $ | 55,990 |
| $ | 47,778 |
|
Accrued expenses and other current liabilities |
| 54,622 |
| 71,616 |
| ||
Merchandise advances |
| 16,388 |
| 17,104 |
| ||
Total current liabilities |
| 127,000 |
| 136,498 |
| ||
|
|
|
|
|
| ||
Other long-term liabilities |
| 6,252 |
| 5,982 |
| ||
Deferred income taxes |
| 4,220 |
| 4,220 |
| ||
Long-term debt |
| 100,000 |
| 100,000 |
| ||
Total liabilities |
| 237,472 |
| 246,700 |
| ||
|
|
|
|
|
| ||
Stockholders’ equity: |
|
|
|
|
| ||
Preferred Stock; authorized 5,000 shares at March 31, 2004 and December 31, 2003, none issued and outstanding |
| — |
| — |
| ||
Common Stock, $0.01 par value, authorized 55,000 shares, issued and outstanding 24,321 at March 31, 2004 and 23,998 at December 31, 2003 |
| 243 |
| 240 |
| ||
Additional paid in capital |
| 282,468 |
| 276,233 |
| ||
Accumulated deficit |
| (50,522 | ) | (62,302 | ) | ||
Total stockholders’ equity |
| 232,189 |
| 214,171 |
| ||
|
| $ | 469,661 |
| $ | 460,871 |
|
Guitar Center, Inc. and Subsidiaries
Consolidated Unaudited Statements of Income
(In thousands, except per share data)
|
| Three months ended March 31, |
| ||||
|
| 2004 |
| 2003 |
| ||
|
|
|
|
|
| ||
Net sales |
| $ | 349,703 |
| $ | 287,542 |
|
Cost of goods sold, buying and occupancy |
| 255,020 |
| 212,886 |
| ||
Gross profit |
| 94,683 |
| 74,656 |
| ||
|
|
|
|
|
| ||
Selling, general and administrative expenses |
| 74,318 |
| 62,998 |
| ||
Operating income |
| 20,365 |
| 11,658 |
| ||
|
|
|
|
|
| ||
Interest expense, net |
| 1,363 |
| 3,139 |
| ||
|
|
|
|
|
| ||
Income before income taxes |
| 19,002 |
| 8,519 |
| ||
|
|
|
|
|
| ||
Income taxes |
| 7,222 |
| 3,242 |
| ||
|
|
|
|
|
| ||
Net income |
| $ | 11,780 |
| $ | 5,277 |
|
|
|
|
|
|
| ||
Net income per share |
|
|
|
|
| ||
Basic |
| $ | 0.49 |
| $ | 0.23 |
|
Diluted |
| $ | 0.46 |
| $ | 0.22 |
|
|
|
|
|
|
| ||
Weighted average shares outstanding |
|
|
|
|
| ||
Basic |
| 24,188 |
| 22,791 |
| ||
Diluted |
| 25,501 |
| 23,652 |
| ||
