Exhibit 99.3
TRECORA RESOURCES
SSI CHUSEI, INC. ACQUISITION
Index of Financial Statements
Introduction | 1 |
Unaudited pro forma condensed combined balance sheets as of September 30 ,2014 | 3 |
Unaudited pro forma condensed combined income statement for nine months ended September 30 ,2014 | 4 |
Unaudited pro forma condensed combined income statement for year ended December 31, 2013 | 5 |
Notes to unaudited pro forma condensed combined financial statements | 6 |
TRECORA RESOURCES
PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION (UNAUDITED)
INTRODUCTION
As described elsewhere in this Current Report on Form 8-K/A, on October 1, 2014 Texas Oil & Chemical Co. II, Inc., a wholly owned subsidiary of Trecora Resources (“TREC”), completed the acquisition (“the Acquisition”) of 100% of the Class A common stock of SSI Chusei, Inc. (“SSI”) in exchange for a cash payment of $74,702,000 which was funded (i) $4,702,000 from TREC’s existing cash balances and (ii) $70,000,000 from the proceeds of a senior secured financing.
The accompanying unaudited pro forma condensed combined financial statements (the “pro forma financial statements”) are presented to illustrate the effects of the Acquisition on the financial position and results of operations of TREC. The pro forma financial statements give effect to the adjustments presented in the Notes to the Unaudited Pro Forma Condensed Combined Financial Statements.
The unaudited pro forma condensed combined balance sheet as of September 30, 2014, is based upon the unaudited historical balance sheet of TREC and unaudited historical balance sheet of SSI as of September 30, 2014 and assumes the Acquisition took place on September 30, 2014. The unaudited pro forma condensed combined statement of income for the nine months ended September 30, 2014, is based on the unaudited historical statements of income of TREC and SSI for the nine months ended September 30, 2014, and has been prepared assuming the Acquisition took place on January 1, 2013. The unaudited pro forma condensed combined statement of income for the year ended December 31, 2013, is based on the audited historical statements of income of TREC and SSI for the year ended December 31, 2013, and has been prepared assuming the acquisition took place on January 1, 2013. The historical financial information of TREC and SSI is adjusted in the unaudited pro forma condensed combined financial information to give pro forma effect to events that are (1) directly attributable to the Acquisition, (2) factually supportable, and (3) with respect to the condensed combined statements of income, expected to have a continuing impact on the combined results.
The unaudited pro forma condensed combined financial statements are presented for illustrative purposes only and are not necessarily indicative of, or intended to represent, the financial position or results of operations that would have resulted had the Acquisition been consummated as of the dates indicated or that may be achieved in the future. The actual results reported by the combined company in periods following the Acquisition may differ significantly from those reflected in these pro forma financial statements for a number of reasons including cost saving synergies from operating efficiencies and the effect of the incremental costs incurred to integrate the two companies.
The unaudited pro forma condensed combined financial statements, including the notes thereto, should be read in conjunction with the consolidated financial statements of TREC included in its Annual Report on Form 10-K for the year ended December 31, 2013, and in its Quarterly Report on Form 10-Q for the quarter ended September 30, 2014, the historical audited financial statements of SSI, including the notes thereto, as of and for the year ended December 31, 2013, included in TREC’s Current Report
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on Form 8-K filed October 3, 2014, and the historical unaudited financial statements of SSI, including the notes thereto, for the nine months ended September 30, 2014, included elsewhere in this Current Report on Form 8-K/A-1.
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TRECORA RESOURCES
Pro Forma Condensed Combined Balance Sheets as of September 30, 2014 (Unaudited)
(in thousands)
Historical Trecora Resources | Historical SSI Chusei, Inc. | Pro Forma Adjustments | Note 2 | Combined Pro Forma | |||||||||||||||
ASSETS | |||||||||||||||||||
Current Assets | |||||||||||||||||||
Cash and cash equivalents | $ | 13,948 | $ | 107 | $ | (4,702 | ) | a | $ | 9,353 | |||||||||
Trade receivables, net | 27,625 | 2,821 | - | 30,446 | |||||||||||||||
Inventories | 11,956 | 2,931 | 408 | a | 15,295 | ||||||||||||||
Prepaid expenses and other assets | 2,520 | 742 | - | 3,262 | |||||||||||||||
Deferred income taxes | 839 | - | - | 839 | |||||||||||||||
Total current assets | 56,888 | 6,601 | 59,195 | ||||||||||||||||
Plant, pipeline and equipment, net | 46,251 | 16,007 | 7,947 | a | 70,205 | ||||||||||||||
Goodwill | - | - | 21,273 | a | 21,273 | ||||||||||||||
Other intangible assets | - | - | 26,634 | a | 26,634 | ||||||||||||||
Investment in AMAK | 53,408 | - | - | 53,408 | |||||||||||||||
Mineral properties in the United States | 588 | - | - | 588 | |||||||||||||||
Other assets | 772 | - | - | 772 | |||||||||||||||
TOTAL ASSETS | $ | 157,907 | $ | 22,608 | $ | 232,075 | |||||||||||||
LIABILITIES | |||||||||||||||||||
Current Liabilities | |||||||||||||||||||
Accounts payable | $ | 12,605 | $ | 1,074 | - | $ | 13,679 | ||||||||||||
Accrued interest | 81 | - | - | 81 | |||||||||||||||
Current portion of derivative instruments | 198 | 2 | - | 200 | |||||||||||||||
Accrued liabilities | 3,881 | 1,119 | 472 | b | 5,472 | ||||||||||||||
Accrued liabilities in Saudi Arabia | 140 | - | - | 140 | |||||||||||||||
Current portion of post-retirement benefit | 284 | - | - | 284 | |||||||||||||||
Current portion of long-term debt | 1,400 | 667 | 7,000 | a | 9,067 | ||||||||||||||
Current portion of other liabilities | 1,080 | 1,253 | - | 2,333 | |||||||||||||||
Total current liabilities | 19,669 | 4,115 | 31,256 | ||||||||||||||||
Long-term debt, net of current portion | 7,789 | - | 63,000 | a | 70,789 | ||||||||||||||
Post-retirement benefit, net of current portion | 649 | - | - | 649 | |||||||||||||||
Derivative instruments, net of current portion | 183 | - | - | 183 | |||||||||||||||
Other liabilities, net of current portion | 706 | 53 | - | 759 | |||||||||||||||
Deferred income taxes | 10,580 | - | - | 10,580 | |||||||||||||||
Total liabilities | 39,576 | 4,168 | 114,216 | ||||||||||||||||
EQUITY | |||||||||||||||||||
Common stock | 2,395 | 2,395 | |||||||||||||||||
Additional paid-in capital | 47,673 | 47,673 | |||||||||||||||||
Accumulated other comprehensive loss | (248 | ) | (248 | ) | |||||||||||||||
Retained earnings | 68,222 | (472 | ) | b | 67,750 | ||||||||||||||
Net assets SSI | - | 18.440 | (18,440 | ) | a | - | |||||||||||||
Total Stockholders’ Equity | 118,042 | 117,570 | |||||||||||||||||
Noncontrolling Interest | 289 | - | 289 | ||||||||||||||||
Total equity | 118,331 | 18,440 | 117,859 | ||||||||||||||||
TOTAL LIABILITIES AND EQUITY | $ | 157,907 | $ | 22,608 | $ | 232,075 |
See accompanying notes to unaudited pro forma condensed combined financial statements.
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TRECORA RESOURCES
Pro Forma Condensed Combined Statements of Income
For the nine months ended September 30, 2014 (Unaudited)
Historical Trecora Resources | Historical SSI Chusei, Inc. (Note 3) | Pro Forma Adjustments | Note 2 | Combined Pro Forma | |||||||||||||||
(thousands of dollars) | |||||||||||||||||||
REVENUES | |||||||||||||||||||
Product Sales | $ | 210,517 | $ | 12,670 | $ | - | $ | 223,187 | |||||||||||
Processing Fees | 5,054 | 6,653 | - | 11.707 | |||||||||||||||
215,571 | 19,323 | - | 234,894 | ||||||||||||||||
OPERATING COSTS AND EXPENSES | |||||||||||||||||||
Cost of Sales and Processing | 182,112 | 15,095 | (621 | ) | c | 196,586 | |||||||||||||
GROSS PROFIT | 33,459 | 4,228 | 38,308 | ||||||||||||||||
GENERAL AND ADMINISTRATIVE EXPENSES | |||||||||||||||||||
General and Administrative | 12,430 | 1,938 | (388 | ) | e | 14,160 | |||||||||||||
180 | f | ||||||||||||||||||
Depreciation and Amortization | 406 | 41 | 1,534 | d | 1,981 | ||||||||||||||
12,836 | 1,979 | 16,141 | |||||||||||||||||
OPERATING INCOME | 20,623 | 2,249 | 22,167 | ||||||||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||||||
Interest Income | 26 | 23 | - | 49 | |||||||||||||||
Interest Expense | (169 | ) | (39 | ) | (1,407 | ) | g | (1,615 | ) | ||||||||||
Losses on Cash Flow Hedge Reclassified from OCI | (190 | ) | - | - | (190 | ) | |||||||||||||
Equity in losses of AMAK | (687 | ) | - | - | (687 | ) | |||||||||||||
Miscellaneous Income (Expense) | (47 | ) | 58 | - | 11 | ||||||||||||||
(1,067 | ) | 42 | (1,407 | ) | (2,432 | ) | |||||||||||||
INCOME BEFORE INCOME TAXES | 19,556 | 2,291 | 19,735 | ||||||||||||||||
INCOME TAXES | 6,183 | 6 | 58 | h | 6,247 | ||||||||||||||
NET INCOME | 13,373 | 2,285 | 13,488 | ||||||||||||||||
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST | -- | - | - | ||||||||||||||||
NET INCOME ATTRIBUTABLE TO TRECORA RESOURCES | $ | 13,373 | $ | 2,285 | $ | 13,488 | |||||||||||||
Basic Earnings per Common Share | |||||||||||||||||||
Net Income Attributable to Trecora Resources (dollars) | $ | 0.55 | $ | 0.56 | |||||||||||||||
Basic Weighted Average Number of Common Shares Outstanding | 24,163 | 24,163 | |||||||||||||||||
Diluted Earnings per Common Share | |||||||||||||||||||
Net Income Attributable to Trecora Resources (dollars) | $ | 0.54 | $ | 0.54 | |||||||||||||||
Diluted Weighted Average Number of Common Shares Outstanding | 24,870 | 24,870 |
See accompanying notes to unaudited pro forma condensed combined financial statements.
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TRECORA RESOURCES
Pro Forma Condensed Combined Statements of Income
For the year ended December 31, 2013 (Unaudited)
Historical Trecora Resources | Historical SSI Chusei, Inc. (Note 3) | Pro Forma Adjustments | Note 2 | Combined Pro Forma | |||||||||||||||
(thousands of dollars) | |||||||||||||||||||
REVENUES | |||||||||||||||||||
Product Sales | $ | 230,643 | $ | 15,452 | $ | - | $ | 246,095 | |||||||||||
Processing Fees | 5,584 | 7,669 | - | 13.253 | |||||||||||||||
236,227 | 23,121 | - | 259,348 | ||||||||||||||||
OPERATING COSTS AND EXPENSES | |||||||||||||||||||
Cost of Sales and Processing | 201,064 | 15,334 | (845 | ) | c | 215,553 | |||||||||||||
GROSS PROFIT | 35,163 | 7,787 | (845 | ) | 43,795 | ||||||||||||||
GENERAL AND ADMINISTRATIVE EXPENSES | |||||||||||||||||||
General and Administrative | 14,672 | 2,734 | 240 | f | 17,646 | ||||||||||||||
Depreciation and Amortization | 521 | 54 | 2,045 | d | 2,620 | ||||||||||||||
15,193 | 2,788 | 20,266 | |||||||||||||||||
OPERATING INCOME | 19,970 | 4,999 | 23,529 | ||||||||||||||||
OTHER INCOME (EXPENSE) | |||||||||||||||||||
Interest Income | 15 | - | - | 15 | |||||||||||||||
Interest Expense | (520 | ) | (116 | ) | (2,034 | ) | g | (2,670 | ) | ||||||||||
Losses on Cash Flow Hedge Reclassified from OCI | (301 | ) | - | - | (301 | ) | |||||||||||||
Equity in earnings of AMAK | 4,703 | - | - | 4,703 | |||||||||||||||
Gain from additional equity issuance by AMAK | 3,997 | - | - | 3,997 | |||||||||||||||
Miscellaneous Expense | (219 | ) | (282 | ) | - | (501 | ) | ||||||||||||
7,675 | (398 | ) | 5,243 | ||||||||||||||||
INCOME BEFORE INCOME TAXES | 27,645 | 4,601 | 28,772 | ||||||||||||||||
INCOME TAXES | 8,147 | (7 | ) | 409 | h | 8,549 | |||||||||||||
NET INCOME | 19,498 | 4,608 | 20,223 | ||||||||||||||||
NET LOSS ATTRIBUTABLE TO NONCONTROLLING INTEREST | -- | - | - | - | |||||||||||||||
NET INCOME ATTRIBUTABLE TO TRECORA RESOURCES | $ | 19,498 | $ | 4,608 | $ | 20,223 | |||||||||||||
Basic Earnings per Common Share | |||||||||||||||||||
Net Income Attributable to Trecora Resources (dollars) | $ | 0.81 | $ | 0.84 | |||||||||||||||
Basic Weighted Average Number of Common Shares Outstanding | 24,115 | 24,115 | |||||||||||||||||
Diluted Earnings per Common Share | |||||||||||||||||||
Net Income Attributable to Trecora Resources (dollars) | $ | 0.79 | $ | 0.82 | |||||||||||||||
Diluted Weighted Average Number of Common Shares Outstanding | 24,745 | 24,745 |
See accompanying notes to unaudited pro forma condensed combined financial statements.
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TRECORA RESOURCES
Notes to Pro Forma Condensed Combined Unaudited Financial Statements
1. | Basis of Presentation |
On October 1, 2014, (“the Closing Date” or the “Acquisition Date”) Texas Oil & Chemical Co. II, Inc. (“TOCCO”), a Texas corporation and a wholly owned subsidiary of TREC, completed the acquisition of 100% of the Class A common stock of SSI, a Texas corporation and leading manufacturer of specialty polyethylene waxes and custom toll processing services in Pasadena, Texas (the “Acquisition”). The Acquisition was completed pursuant to a Stock Purchase Agreement dated as of September 19, 2014, by and among TREC, TOCCO, Schumann/Steier Holdings, LLC (“SSH”), a Delaware limited liability company, and SSI.
The accompanying unaudited pro forma condensed combined financial statements (the “pro forma financial statements”) are presented to illustrate the effects of the Acquisition on the financial position and results of operations of TREC. The pro forma statements give effect to the adjustments described in Note 2 below.
TREC has accounted for the Acquisition in accordance with the acquisition method of accounting under Financial Accounting Standards Board Accounting Standards Codification Topic 805 “Business Combinations” (“ASC 805”). In accordance with ASC 805, TREC used its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the Acquisition Date. Goodwill as of the Acquisition Date is measured as the excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired.
The following table summarizes the components of the purchase consideration (in thousands):
Cash paid at closing | $ | 3,000 | ||
Estimated cash to be paid for working capital adjustment | 1,702 | |||
Debt | 70,000 | |||
Total purchase consideration | $ | 74,702 |
The purchase price for the Acquisition consisted of payment of $73,000,000 plus an upward or downward closing working capital adjustment to be determined within 60 days after closing. The estimated working capital adjustment is currently $1.7 million.
Pursuant to the Escrow Agreement, TOCCO deposited $3,000,000 of the purchase price into an escrow account (the “Escrowed Amount”), which will be available to fund SSH’s indemnity obligations under the Stock Purchase Agreement. The Escrowed Amount will be released to SSH as follows: (a) six months from the Closing Date any Escrowed Amount above $2,000,000 that is not subject to a claim will be released, (b) twelve months after the Closing Date any remaining
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Escrowed Amount above $1,000,000 that is not subject to a claim will be released, and (c) eighteen months after the Closing Date any remaining Escrowed Amount that is not subject to a claim will be released (in all cases exclusive of the estimated tax payment to the State of Texas).
The following table summarizes the Acquisition Date fair value of the identifiable assets acquired and liabilities assumed and the amount recognized as goodwill (in thousands):
Purchase Price | $ | 74,702 | ||||||
Cash | $ | 107 | ||||||
Trade receivables | 2,821 | |||||||
Inventories | 3,339 | |||||||
Prepaid expenses and other assets | 742 | |||||||
Plant, pipeline and equipment | 23,954 | |||||||
Other intangible assets | 26,634 | |||||||
Accounts payable | (1,074 | ) | ||||||
Accrued liabilities | (1,174 | ) | ||||||
Other liabilities | (1,253 | ) | ||||||
Long-term debt, net of current portion | (667 | ) | 53,429 | |||||
Goodwill | $ | 21,273 |
The components of the other intangible assets and their respective useful lives are as follows (in thousands):
Identifiable Intangible Asset | Value | Estimated Useful Life | |||
Customer Relationships | $ | 16,781 | 15 years | ||
Non-compete Agreements | 93 | 5 years | |||
Licenses and Permits | 1,471 | various | |||
Trade Name | 2,158 | indefinite | |||
Developed Technology | 6,131 | 10 years | |||
Total | $ | 26,634 |
The unaudited pro forma condensed combined balance sheet as of September 30, 2014, is based upon the unaudited historical balance sheet of TREC and unaudited historical balance sheet of SSI as of September 30, 2014, and assumes the Acquisition took place on September 30, 2014. The unaudited pro forma condensed combined statement of income for the nine months ended September 30, 2014, is based on the unaudited historical statements of income of TREC and SSI for the nine months ended September 30, 2014, and has been prepared assuming the acquisition took place on January 1, 2013. The unaudited pro forma condensed combined statement of income for the year ended December 31, 2013, is based on the audited historical statements of income of TREC and SSI for the year ended December 31, 2013, and has been prepared assuming the Acquisition took place on January 1, 2013. The historical financial information of TREC and SSI is adjusted in the pro forma financial statements to give pro forma effect to events that are (1) directly attributable to the Acquisition, (2) factually supportable,
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and (3) with respect to the pro forma condensed combined statements of income, expected to have a continuing impact on the combined results.
The pro forma financial statements are presented for illustrative purposes only and are not necessarily indicative of, or intended to, represent the financial position or result s of operations that would have resulted had the Acquisition been consummated as of the dates indicated or that may be achieved in the future. The actual results reported by the combined company in periods following the Acquisition may differ significantly from those reflected in these unaudited pro forma condensed combined financial statements for a number of reasons including cost saving synergies from operating efficiencies and the effect of the incremental costs incurred to integrate the two companies.
2. | Pro Forma Adjustments |
The pro forma adjustments to the unaudited pro forma condensed combined balance sheet are as follows:
a. | To record the payment of the purchase consideration (including the receipt and payment of the proceeds of the senior secured financing) as follows (in thousands): |
Payment of acquisition cost (including receipt and disbursement of proceeds of senior secured financing): | ||||
Paid from TREC cash balances | $ | 4,702 | ||
Current portion of financing | 7,000 | |||
Non-current portion of financing | 63,000 | |||
Total acquisition cost | $ | 74,702 | ||
Allocation of acquisition cost to assets acquired and liabilities assumed: | ||||
Net assets of SSI at historical cost | $ | 18,440 | ||
Adjustment of inventories to fair value | 408 | |||
Adjustment of plant, pipeline and equipment to fair value | 7,947 | |||
Record other intangible assets at fair value | 26,634 | |||
Record goodwill | 21,273 | |||
$ | 74,702 |
b. | To record $472,000 of acquisition costs incurred by TREC after September 30, 2014. TREC will charge these acquisition costs to expense in the quarter ending December 31, 2014. These expenses are not reflected in the pro forma statements of income, and acquisition costs incurred through September 30, 2014 are eliminated from the pro forma statements of income (see adjustment (e) below) due to their non-recurring nature. |
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The pro forma adjustments to the unaudited pro forma condensed combined statements of income are as follows:
c. | To record additional depreciation expense resulting from the adjustment to fair value of SSI’s plant, pipeline and equipment. |
d. | To record amortization expense on other intangible assets. |
e. | To eliminate non-recurring acquisition costs incurred by TREC in the nine months ended September 30, 2014. |
f. | To record additional salary costs in connection with the employment contracts with certain officers. |
g. | To record additional interest expense on the senior secured financing using the TREC estimated interest rate of 2.655%. |
h. | To record the estimated tax effect on the incremental change based on the combined federal and state statutory tax rate of 35.67%. |
3. | Reclassifications |
Certain reclassifications have been made in the historical SSI financial statement to conform to TREC’s financial statement presentation. As shown below, these reclassifications have no impact on net income.
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TRECORA RESOURCES
Notes to Pro Forma Condensed Combined Statements of Income
Reclassifications of Historical SSI Chusei, Inc.
For the nine months ended September 30, 2014 (Unaudited)
As Reported | Reclassifications | As Reclassified | ||||||||||
REVENUES | $ | 19,323 | $ | (19,323 | ) | $ | - | |||||
Product Sales | - | 12,670 | 12,670 | |||||||||
Processing Fees | - | 6,653 | 6.653 | |||||||||
19,323 | 19,323 | |||||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||
COST OF REVENUES | 9,762 | (9,762 | ) | - | ||||||||
Cost of Sales and Processing | - | 15,095 | 15,095 | |||||||||
GROSS PROFIT | 9,561 | 4,228 | ||||||||||
OPERATING, SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 7,652 | (7,652 | ) | - | ||||||||
General and Administrative | - | 1,938 | 1,938 | |||||||||
Depreciation and Amortization | - | 41 | 41 | |||||||||
7,652 | 1,979 | |||||||||||
INCOME BEFORE OTHER INCOME (EXPENSES) | 1,909 | |||||||||||
OPERATING INCOME | 2,249 | |||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||
Interest and Dividend Income | 24 | - | 24 | |||||||||
Gain on sale of marketable securities | 71 | (71 | ) | - | ||||||||
Insurance proceeds | 311 | (311 | ) | - | ||||||||
Other income | 35 | (35 | ) | - | ||||||||
Interest Expense | (40 | ) | - | (40 | ) | |||||||
Loss on disposal | (19 | ) | 19 | - | ||||||||
Miscellaneous Income (Expense) | - | 58 | 58 | |||||||||
382 | 42 | |||||||||||
INCOME BEFORE INCOME TAXES | 2,291 | - | 2,291 | |||||||||
INCOME TAXES | 6 | - | 6 | |||||||||
NET INCOME | $ | 2,285 | - | $ | 2,285 |
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TRECORA RESOURCES
Notes to Pro Forma Condensed Combined Statements of Income
Reclassifications of Historical SSI Chusei, Inc.
For the year ended December 31, 2013 (Unaudited)
As Reported | Reclassifications | As Reclassified | ||||||||||
REVENUES | ||||||||||||
SALES | $ | 23,121 | $ | (23,121 | ) | $ | - | |||||
Product Sales | - | 15,452 | 15,452 | |||||||||
Processing Fees | - | 7,669 | 7.669 | |||||||||
23,121 | 23,121 | |||||||||||
OPERATING COSTS AND EXPENSES | ||||||||||||
COST OF SALES | 9,202 | (9,202 | ) | - | ||||||||
Cost of Sales and Processing | - | 15,334 | 15,334 | |||||||||
GROSS PROFIT | 13,919 | 7,787 | ||||||||||
OPERATING, SELLING, GENERAL AND ADMINISTRATIVE EXPENSES | 9,160 | (9,160 | ) | - | ||||||||
General and Administrative | - | 2,734 | 2,734 | |||||||||
Depreciation and Amortization | - | 54 | 54 | |||||||||
9,160 | 2,788 | |||||||||||
INCOME BEFORE OTHER INCOME (EXPENSES) | 4,759 | |||||||||||
OPERATING INCOME | 4,999 | |||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||
Other income | 249 | (249 | ) | - | ||||||||
Interest Expense | (116 | ) | - | (116 | ) | |||||||
Loss on disposal | (21 | ) | 21 | - | ||||||||
Other expenses | (263 | ) | 263 | - | ||||||||
Miscellaneous Income (Expense) | - | (282 | ) | (282 | ) | |||||||
(151 | ) | (398 | ) | |||||||||
INCOME BEFORE INCOME TAXES | 4,608 | 4,601 | ||||||||||
INCOME TAXES | - | (7 | ) | (7 | ) | |||||||
NET INCOME | $ | 4,608 | $ | 4,608 |
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