Exhibit 99.2
FINANCIAL STATEMENTS OF BUSINESS ACQUIRED
RADER FARMS, INC.
INTERIM CONDENSED FINANCIAL STATEMENTS (UNAUDITED)
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Interim Condensed Balance Sheet (Unaudited) – March 31, 2007 |
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Interim Condensed Statement of Income (Unaudited) – March 31, 2007 and 2006 |
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Interim Condensed Statement of Cash Flows (Unaudited) – March 31, 2007 and 2006 |
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RADER FARMS, INC.
INTERIM CONDENSED BALANCE SHEET
(UNAUDITED)
MARCH 31, 2007
ASSETS |
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Current Assets: |
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Cash and cash equivalents |
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| $ | 100,145 |
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Accounts receivable |
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| 2,473,347 |
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Inventory |
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| 4,645,842 |
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Other current assets |
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| 38,712 |
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Total current assets |
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| 7,258,046 |
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Property, Plant and Equipment: |
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Fixed Assets |
| $ | 14,109,740 |
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Less: Accumulated depreciation |
| 6,627,003 |
| 7,482,737 |
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Other Assets: |
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Investment in farmers’ cooperative |
| 77,256 |
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Deposit |
| 20,971 |
| 98,227 |
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Total Assets |
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| $ | 14,839,010 |
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See accompanying notes to unaudited interim condensed financial statements
2
LIABILITIES AND STOCKHOLDERS’ EQUITY |
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Current Liabilities: |
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Accounts payable |
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| $ | 2,454,180 |
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Line of credit |
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| 4,345,500 |
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Other current liabilities |
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| 642,913 |
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Current portion of long-term debt |
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| 565,000 |
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Total current liabilities |
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| 8,007,593 |
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Long-Term Debt: |
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Note payable - stockholders |
| $ | 2,536,984 |
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Notes payable |
| 1,751,995 |
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Obligations under capital leases |
| 106,221 |
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| 4,395,200 |
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Less: Current portion included above |
| 565,000 |
| 3,830,200 |
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Stockholders’ Equity: |
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Common stock, $1 par value, 50,000 shares authorized, 500 shares issued and outstanding |
| 500 |
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Additional paid-in capital |
| 201,815 |
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Retained earnings |
| 2,798,902 |
| 3,001,217 |
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Total Liabilities and Stockholders’ Equity |
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| $ | 14,839,010 |
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See accompanying notes to unaudited interim condensed financial statements
3
RADER FARMS, INC.
INTERIM CONDENSED STATEMENTS OF INCOME AND RETAINED EARNINGS
(UNAUDITED)
FOR THE QUARTERS ENDED MARCH 31, 2007 and 2006
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| March 31, 2007 |
| March 31, 2006 |
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Sales |
| $ | 8,355,317 |
| $ | 6,497,630 |
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Cost of Sales |
| 6,564,224 |
| 5,050,034 |
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Gross Profit |
| 1,791,093 |
| 1,447,596 |
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Selling, General and Administrative Expenses |
| 364,887 |
| 412,232 |
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Income from Operations |
| 1,426,206 |
| 1,035,364 |
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Other Income (Expense): |
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Miscellaneous income |
| 13,091 |
| 20,548 |
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Patronage dividend |
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| — |
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Gain on disposal of assets |
| — |
| — |
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Interest expense, net |
| (211,393 | ) | (134,539 | ) | ||
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Net Income |
| $ | 1,227,904 |
| $ | 921,373 |
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-ooOoo- |
Retained Earnings, Beginning |
| $ | 1,570,998 |
| $ | 1,493,992 |
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Net Income |
| 1,227,904 |
| 921,373 |
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Distributions |
| — |
| — |
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Retained Earnings, Ending |
| $ | 2,798,902 |
| $ | 2,415,365 |
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See accompanying notes to unaudited interim condensed financial statements
4
RADER FARMS, INC.
INTERIM CONDENSED STATEMENTS OF CASH FLOWS
(UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 2007 and 2006
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| March 31, 2007 |
| March 31, 2006 |
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Cash Flows from Operating Activities: |
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Net income |
| $ | 1,227,904 |
| $ | 921,373 |
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Adjustments to reconcile net income to net cash used by operating activities: |
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Depreciation and amortization |
| 260,567 |
| 187,731 |
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(Increase) decrease in: |
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Accounts receivable |
| (766,843 | ) | (430,917 | ) | ||
Inventory |
| 2,150,058 |
| 459,834 |
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Other assets and liabilities |
| 51,191 |
| (3,122 | ) | ||
Increase (decrease) in: |
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Accounts payable |
| 467,653 |
| (184,534 | ) | ||
Accrued expenses |
| (332,336 | ) | (287,319 | ) | ||
Net Cash Used by Operating Activities |
| 3,058,194 |
| 663,046 |
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Cash Flows from Investing Activities: |
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Acquisition of property and equipment |
| (337,950 | ) | (782,641 | ) | ||
Net Cash Used by Investing Activities |
| (337,950 | ) | (782,641 | ) | ||
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Cash Flows from Financing Activities: |
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Net advances from line of credit |
| (2,650,000 | ) | 194,670 |
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Principal payments on long-term debt |
| (289,904 | ) | (113,299 | ) | ||
Net Cash Provided by Financing Activities |
| (2,939,904 | ) | 81,371 |
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Net Increase in Cash and Cash Equivalents |
| (219,660 | ) | (38,224 | ) | ||
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Cash and Cash Equivalents, Beginning of Year |
| 319,805 |
| 264,986 |
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Cash and Cash Equivalents, End of Year |
| $ | 100,145 |
| $ | 226,762 |
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See accompanying notes to unaudited interim condensed financial statements
5