Exhibit 99.3
VERASUN ENERGY CORPORATION
UNAUDITED GUARANTOR / NON-GUARANTOR
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS
Under the universal shelf registration statement on Form S-3 (the “Registration Statement”) filed by VeraSun Energy Corporation (“Company” or “VEC”), certain wholly-owned subsidiaries of the Company may fully and unconditionally guarantee, on a joint and several basis, debt securities that may be offered from time to time by the Company under the Registration Statement. The following tables present unaudited condensed consolidating financial information for (i) the Company, (ii) all of the subsidiaries of the Company that may guarantee debt securities offered under the Registration Statement and (iii) subsidiaries of the Company that would not guarantee such debt securities, as of June 30, 2008, and for the three and/or six months then ended. VeraSun Aurora Corporation, VeraSun Fort Dodge, LLC, VeraSun Charles City, LLC, VeraSun Marketing, LLC, VeraSun Hartley, LLC, VeraSun Welcome, LLC, VeraSun Biodiesel, LLC, VeraSun Granite City, LLC, VeraSun Reynolds, LLC, VeraSun Litchfield, LLC, VeraSun Tilton, LLC, and US BioEnergy Corporation, each a wholly-owned subsidiary of VEC, are combined as guarantors. This report does not constitute an offer of any securities for sale.
Certain debt financing arrangements of the Company’s non-guarantor subsidiaries limit the non-guarantor subsidiaries’ ability to pay dividends or make distributions to the guarantor companies. The Company’s unaudited condensed consolidated balance sheet includes approximately $604 million of net assets of the non-guarantor subsidiaries at June 30, 2008, which, subject to limitations under the applicable financing arrangements, would generally be available to fund operations and investments at a particular non-guarantor subsidiary, but would not be available to the guarantor subsidiaries for general corporate purposes.
CONDENSED CONSOLIDATING BALANCE SHEET
JUNE 30, 2008
ASSETS
(in thousands)
Issuer | Guarantors | Non-Guarantors | Eliminations and Consolidations | Consolidated | ||||||||||||
Current Assets | ||||||||||||||||
Cash and cash equivalents | $ | 2,034 | $ | — | $ | 31,930 | $ | (5,523 | ) | $ | 28,441 | |||||
Restricted cash | 1,525 | — | 13,252 | — | 14,777 | |||||||||||
Trade receivables | — | 66,261 | 103,634 | (2,897 | ) | 166,998 | ||||||||||
Inventories | — | 109,799 | 93,121 | 7,737 | 210,657 | |||||||||||
Prepaid expenses and other assets | — | 128,216 | 22,366 | (42,806 | ) | 107,776 | ||||||||||
Derivative financial instruments | — | 39,850 | 24,383 | — | 64,233 | |||||||||||
Deferred income taxes | — | 1,765 | — | (917 | ) | 848 | ||||||||||
Total current assets | 3,559 | 345,891 | 288,686 | (44,406 | ) | 593,730 | ||||||||||
Other Assets | ||||||||||||||||
Goodwill | 6,106 | 18,180 | 242,493 | — | 266,779 | |||||||||||
Other intangible assets | — | — | 66,344 | — | 66,344 | |||||||||||
Other long-term assets | 2,610 | 19,363 | 5,260 | — | 27,233 | |||||||||||
Debt issuance costs, net | 18,077 | — | — | — | 18,077 | |||||||||||
Deferred income taxes | 22,813 | — | — | (22,813 | ) | — | ||||||||||
Investment in subsidiaries | 1,450,392 | 738,462 | 1,837 | (2,190,691 | ) | — | ||||||||||
1,499,998 | 776,005 | 315,934 | (2,213,504 | ) | 378,433 | |||||||||||
Property and equipment, net | 13,928 | 829,795 | 1,631,196 | 5,903 | 2,480,822 | |||||||||||
$ | 1,517,485 | $ | 1,951,691 | $ | 2,235,816 | $ | (2,252,007 | ) | $ | 3,452,985 | ||||||
VERASUN ENERGY CORPORATION
UNAUDITED GUARANTOR / NON-GUARANTOR
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (continued)
Condensed Consolidating Balance Sheet (continued)
JUNE 30, 2008
LIABILITIES AND SHAREHOLDERS’ AND MEMBERS’ EQUITY
(in thousands)
Issuer | Guarantors | Non-Guarantors | Eliminations and Consolidations | Consolidated | |||||||||||||
Current Liabilities | |||||||||||||||||
Outstanding checks in excess of bank balance | $ | — | $ | 14,319 | $ | — | $ | (14,319 | ) | $ | — | ||||||
Current maturities of long-term debt | — | — | 51,124 | — | 51,124 | ||||||||||||
Accounts payable | 18,707 | 134,311 | 60,065 | (36,252 | ) | 176,831 | |||||||||||
Accrued expenses and other liabilities | 5,379 | 12,274 | 24,538 | — | 42,191 | ||||||||||||
Derivative financial instruments | — | 38,964 | 2,743 | — | 41,707 | ||||||||||||
Deferred income taxes | 538 | — | 379 | (917 | ) | — | |||||||||||
Total current liabilities | 24,624 | 199,868 | 138,849 | (51,488 | ) | 311,853 | |||||||||||
Long-Term Liabilities | |||||||||||||||||
Long-term debt, less current maturities | 697,682 | — | 699,036 | — | 1,396,718 | ||||||||||||
Deferred income taxes | — | 126,446 | 53,961 | (22,813 | ) | 157,594 | |||||||||||
Other long-term liabilities | 1,444 | 10,652 | 34,953 | — | 47,049 | ||||||||||||
699,126 | 137,098 | 787,950 | (22,813 | ) | 1,601,361 | ||||||||||||
Minority interest in consolidated subsidiary | — | — | 3,908 | — | 3,908 | ||||||||||||
Intercompany (receivable) payable | (737,328 | ) | 605,532 | 131,796 | — | — | |||||||||||
Shareholders’ and Members’ Equity | 1,531,063 | 1,009,193 | 1,173,313 | (2,177,706 | ) | 1,535,863 | |||||||||||
$ | 1,517,485 | $ | 1,951,691 | $ | 2,235,816 | $ | (2,252,007 | ) | $ | 3,452,985 | |||||||
VERASUN ENERGY CORPORATION
UNAUDITED GUARANTOR / NON-GUARANTOR
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (continued)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the Three Months Ended June 30, 2008
(in thousands)
Issuer | Guarantors | Non-Guarantors | Eliminations and Consolidations | Consolidated | ||||||||||||||||
Net sales | $ | 3,930 | $ | 495,336 | $ | 522,272 | $ | (6,370 | ) | $ | 1,015,168 | |||||||||
Cost of goods sold | 81 | 466,458 | 483,045 | (6,370 | ) | 943,214 | ||||||||||||||
Gross profit | 3,849 | 28,878 | 39,227 | — | 71,954 | |||||||||||||||
Startup expenses | — | 2,651 | 1,940 | — | 4,591 | |||||||||||||||
Restructuring charge | 2,004 | — | — | — | 2,004 | |||||||||||||||
Selling, general and administrative expenses | 11,662 | 948 | 3,707 | — | 16,317 | |||||||||||||||
Operating income (loss) | (9,817 | ) | 25,279 | 33,580 | — | 49,042 | ||||||||||||||
Other income (expense): | ||||||||||||||||||||
Interest expense | (17,391 | ) | (7,143 | ) | (10,782 | ) | 19,815 | (15,501 | ) | |||||||||||
Interest income | 16,215 | 844 | 206 | (16,658 | ) | 607 | ||||||||||||||
Equity in earnings of subsidiaries | 28,928 | 12,104 | — | (41,032 | ) | — | ||||||||||||||
Other income | 2,485 | 50 | (2,295 | ) | — | 240 | ||||||||||||||
30,237 | 5,855 | (12,871 | ) | (37,875 | ) | (14,654 | ) | |||||||||||||
Income before income taxes and minority interest | 20,420 | 31,134 | 20,709 | (37,875 | ) | 34,388 | ||||||||||||||
Income tax provision (benefit) | (3,470 | ) | 7,111 | 6,863 | — | 10,504 | ||||||||||||||
Income before minority interest | 23,890 | 24,023 | 13,846 | (37,875 | ) | 23,884 | ||||||||||||||
Minority interest in net loss of subsidiary, net of income taxes | — | — | 6 | — | 6 | |||||||||||||||
Net income | $ | 23,890 | $ | 24,023 | $ | 13,852 | $ | (37,875 | ) | $ | 23,890 | |||||||||
VERASUN ENERGY CORPORATION
UNAUDITED GUARANTOR / NON-GUARANTOR
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (continued)
CONDENSED CONSOLIDATING STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2008
(in thousands)
Issuer | Guarantors | Non-Guarantors | Eliminations and Consolidations | Consolidated | ||||||||||||||||
Net sales | $ | 7,757 | $ | 875,619 | $ | 654,636 | $ | (6,370 | ) | $ | 1,531,642 | |||||||||
Cost of goods sold | 120 | 816,406 | 614,414 | (6,370 | ) | 1,424,570 | ||||||||||||||
Gross profit | 7,637 | 59,213 | 40,222 | — | 107,072 | |||||||||||||||
Startup expenses | — | 3,777 | 2,925 | — | 6,702 | |||||||||||||||
Restructuring charge | 2,004 | — | — | — | 2,004 | |||||||||||||||
Selling, general and administrative expenses | 21,010 | 2,293 | 4,379 | — | 27,682 | |||||||||||||||
Operating income (loss) | (15,377 | ) | 53,143 | 32,918 | — | 70,684 | ||||||||||||||
Other income (expense): | ||||||||||||||||||||
Interest expense | (34,578 | ) | (14,140 | ) | (14,172 | ) | 36,576 | (26,314 | ) | |||||||||||
Interest income | 31,956 | 1,694 | 217 | (32,319 | ) | 1,548 | ||||||||||||||
Equity in earnings of subsidiaries | 40,731 | 12,104 | — | (52,835 | ) | — | ||||||||||||||
Other income | 2,674 | 335 | (2,295 | ) | — | 714 | ||||||||||||||
40,783 | (7 | ) | (16,250 | ) | (48,578 | ) | (24,052 | ) | ||||||||||||
Income before income taxes and minority interest | 25,406 | 53,136 | 16,668 | (48,578 | ) | 46,632 | ||||||||||||||
Income tax provision (benefit) | (6,057 | ) | 15,874 | 5,358 |
| — |
| 15,175 | ||||||||||||
Income before minority interest | 31,463 | 37,262 | 11,310 | (48,578 | ) | 31,457 | ||||||||||||||
Minority interest in net loss of subsidiary, net of income taxes | — | — | 6 | — | 6 | |||||||||||||||
Net income | $ | 31,463 | $ | 37,262 | $ | 11,316 | $ | (48,578 | ) | $ | 31,463 | |||||||||
VERASUN ENERGY CORPORATION
UNAUDITED GUARANTOR / NON-GUARANTOR
CONDENSED CONSOLIDATING FINANCIAL STATEMENTS (continued)
CONDENSED CONSOLIDATING STATEMENT OF CASH FLOWS
For the Six Months Ended June 30, 2008
(in thousands)
Issuer | Guarantors | Non-Guarantors | Eliminations and Consolidations | Consolidated | ||||||||||||||||
Net cash provided by (used in) operating activities | $ | (171,748 | ) | $ | 97,334 | $ | 31,453 | $ | 4,249 | $ | (38,712 | ) | ||||||||
Cash Flows from Investing Activities | ||||||||||||||||||||
Purchases of property and equipment | 3,512 | (129,474 | ) | (58,646 | ) | (4,249 | ) | (188,857 | ) | |||||||||||
US BioEnergy acquisition, net of transaction costs | (6,233 | ) | 16,292 | 35,047 | — | 45,106 | ||||||||||||||
Proceeds from the sale of short-term investments | 43,175 | — | — | ��� | 43,175 | |||||||||||||||
Change in restricted cash | (1,525 | ) | — | (13,252 | ) | — | (14,777 | ) | ||||||||||||
Payments for other long-term assets and liabilities | 1,232 | (872 | ) | (2,400 | ) | — | (2,040 | ) | ||||||||||||
Proceeds from sales of equipment | — | 1,300 | — | — | 1,300 | |||||||||||||||
Net cash (used in) provided by investing activities | 40,161 | (112,754 | ) | (39,251 | ) | (4,249 | ) | (116,093 | ) | |||||||||||
Cash Flows from Financing Activities | ||||||||||||||||||||
Proceeds from long-term debt | 40,500 | — | 56,592 | — | 97,092 | |||||||||||||||
Principal payments on long-term debt | — | — | (19,696 | ) | — | (19,696 | ) | |||||||||||||
Debt issuance cost paid | (3,655 | ) | — | — | — | (3,655 | ) | |||||||||||||
Cost of registering equity securities | (1,063 | ) | — | — | — | (1,063 | ) | |||||||||||||
Net effect of the exercise of stock options | (374 | ) | — | — | — | (374 | ) | |||||||||||||
Outstanding checks in excess of bank balance | — | 5,523 | — | (5,523 | ) | — | ||||||||||||||
Net cash provided by (used in ) financing activities | 35,408 | 5,523 | 36,896 | (5,523 | ) | 72,304 | ||||||||||||||
Net (decrease) increase in cash and cash equivalents | (96,179 | ) | (9,897 | ) | 29,098 | (5,523 | ) | (82,501 | ) | |||||||||||
Cash and cash equivalents, beginning of period | 98,213 | 9,897 | 2,832 | — | 110,942 | |||||||||||||||
Cash and cash equivalents, end of period | $ | 2,034 | $ | — | $ | 31,930 | $ | (5,523 | ) | $ | 28,441 | |||||||||