Item 7
Financial Statements, Pro Forma Financial Information
Pro Forma Information
Filed herewith is the unaudited pro forma consolidated condensed balance
sheets and consolidated condensed statements of operations
LaBarge, Inc.
Unaudited Pro Forma Consolidated Condensed Balance Sheet
(dollars in thousands)
September 29, 2002
Elimination
of Railroad Unaudited
Unaudited Industry Pro Forma Pro Forma
As Reported Operation Adjustments Results
----------- ------------ ----------- ------------
Assets:
Current Assets:
Cash and cash equivalents $2,892 $ - $5,300 (A) $ 8,192
Accounts and other receivables, net 13,546 - 13,546
Inventory 23,923 (102) (B) 23,821
Prepaid expenses 923 (9) (C) 914
Deferred tax assets, net 677 677
----------- ----------- ----------- ------------
Total current assets $41,961 $ (111) $5,300 $47,150
Property, plant and equipment, net 14,111 - 14,111
Deferred tax assets, net 700 700
Intangible assets, net 5,096 (4,270) (D) 826
Other assets, net 4,888 - 4,888
----------- ----------- ----------- ------------
$66,756 $ (4,381) $ 5,300 $67,675
Liabilities and Stockholder's' Equity
Current Liabilities:
Short-term borrowings $ - $ - $ - $ -
Current maturities of subordinated debt 5,621 5,621
Current maturities of long-term debt 343 343
Trade accounts payable 6,846 6,846
Accrued employee compensation 4,936 4,936
Other accrued liabilities 4,672 2,603 (E) 7,291
----------- ----------- ----------- ------------
Total current liabilities $ 22,418 $ - $ 2,603 $25,037
Other long-term liabilities 3,511 (1,472) (F) 2,039
Long-term debt 6,950 6,950
Stockholder's equity:
Common stock, $.01 par value. Authorized
40,000,000 shares; issued 15,733,253 at
September 29, 2002 and 15,773,253 shares at
June 30,2002 including shares in treasury 158 158
Additional paid-in capital 13,518 13,518
Retained earnings 22,819 (212) (G) 22,591
Accumulated other comprehensive loss (114) (114)
Less cost of common stock in treasury, 752,137
shares at September 29, 2002 and 779,143 at
June 30, 2002. (2,504) (2,504)
----------- ----------- ----------- ------------
Total stockholders' equity 33,877 - (212) 33,649
----------- ----------- ----------- ------------
$66,756 $ (1,472) $2,391 $67,675
Notes to Unaudited Pro Forma Consolidated Financial Statements:
Note (A): Represents the net cash payment of the transaction
Note (B): Represents the transfer of inventory from seller to buyer.
Note (C): Represents the elimination of prepaid railroad marketing expense.
Note (D): Represents the elimination of goodwill, internal software, and
capitalized patents.
Note (E): Represents the accrued tax expense and professional fees relating to
the transaction.
Note (F): Represents the assumed liability of deferred revenue by buyer.
Note (G): Represents the estimated net loss from the transaction.
LaBarge, Inc.
Unaudited Pro Forma Consolidated Statement of Operations:
(dollars in thousands)
For The Quarter Ended September 29, 2002
Elimination
of Railroad Unaudited
Unaudited Industry Pro Forma Pro Forma
As Reported Operation Adjustments Results
----------- ----------- -------- ------------
Net sales $23,591 $ (449) - $ 23,142
Cost and expenses:
Cost of sales 18,755 (210) - 18,545
Selling and administrative expenses 4,526 (268) - 4,258
Interest expense 223 - - 223
Other income (49) - - (49)
----------- ----------- -------- ------------
Net earnings before tax 136 29 - 165
Income tax expense 53 11 - 64
----------- ----------- -------- ------------
Net earnings $ 83 $ 18 - $ 101
Basic earnings (loss) per share:
Net income $ 0.01 $ 0.01
Average common shares outstanding 15,015 15,015
Diluted net earnings per share
Net income $ 0.01 $ 0.01
Average common shares outstanding 15,272 15,272
LaBarge, Inc.
Unaudited Pro Forma Consolidated Condensed Statement of Operations
(dollars in thousands)
For The Year Ended June 30, 2002
Elimination
of Railroad Unaudited
Audited Industry Pro Forma Pro Forma
As Reported Operation Adjustments Results
------------ ------------ ------------ ------------
Net sales $ 120,136 $ (2,546) - $ 117,590
Cost and expenses:
Cost of sales 96,656 (1,225) - 95,431
Selling and administrative expenses 16,964 (1,165) - 15,799
Interest expense 1,144 (100) (A) 1,044
Other income (621) - - (621)
------------ ------------ ------------ ------------
Earnings from continuing operations
before income tax expense 5,993 (156) 100 5,937
Income tax expense 2,063 (54) 64 2,073
------------ ------------ ------------ ------------
Net earnings $ 3,930 $ (102) $ 36 $ 3,864
Basic earnings per share:
Net income $ 0.26 $ 0.26
Average common shares outstanding 14,975 14,975
Diluted net earnings per share
Net income $ 0.26 $ 0.25
Average common shares outstanding 15,404 15,404
Notes to Unaudited Pro Forma Consolidated Financial Statements:
Note (A): Represents an adjustment of interest expense assuming the net cash
proceeds were used to pay off short term borrowing at the beginning of the
period presented.