Exhibit 99.2
CHANCELLOR CORPORATION AND SUBSIDIARIES
PRO FORMA COMBINED BALANCE SHEETS
(In Thousands, Except Share Data)
DECEMBER 31,
1998
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ASSETS
Cash and cash equivalents $ 644
Receivables, net 3,255
Inventory 10,758
Net investment in direct finance leases 359
Equipment on operating lease, net of accumulated depreciation
Of $2,351 702
Residual values, net 219
Furniture and equipment, net of accumulated depreciation
Of $1,290 999
Other investments 3,681
Intangibles, net 7,541
Other assets, net 1,411
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$ 29,569
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LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses $ 6,366
Deferred reimbursable expenses 1,068
Indebtedness:
Revolving credit line 9,063
Notes payable 942
Nonrecourse 889
Recourse 4,234
Total liabilities 22,562
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Commitments and contingencies
Stockholders' equity:
Prefered Stock, $.01 par value, 20,000,000 shares authorized:
Convertible Series AA, 5,000,000 shares issued and outstanding 50
Convertible Series B, 2,000,000 shares authorized,
None issued and outstanding ---
Common stock, $.01 par value; 75,000,000 shares authorized,
43,044,380 shares issued and outstanding 430
Additional paid-in capital 34,217
Accumulated deficit (27,690)
7,007
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$ 29,569
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CHANCELLOR CORPORATION AND SUBSIDIARIES
PRO FORMA COMBINED STATEMENTS OF OPERATIONS
(In Thousands, Except Per Share Data)
DECEMBER 31,
1998 1997
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Revenues:
Transportation equipment sales $ 45,239 $ 27,332
Rental income 942 870
Lease underwriting income 74 293
Direct finance lease income 110 272
Interest income 195 44
Gains from portfolio remarketing 1,374 801
Fees from remarketing activities 1,407 1,488
Other income 441 665
49,782 31,765
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Costs and expenses:
Cost of transportation equipment sales 38,399 22,604
Selling, general and administrative 9,104 10,619
Interest expense 647 687
Depreciation and amortization 681 506
48,831 34,416
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Income (loss) before extraordinary item and
Provision (benefit) for income tax 951 (2,651)
Provision (benefit) for income tax ---- 13
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Income (loss) before extraordinary item 951 (2,664)
Extraordinary item - gain on debt forgiveness ---- 930
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Net income (loss) $ 951 ( $1,734)
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Basic net income (loss) per share:
Income (loss) before extraordinary item $ .03 $ .17
Extraordinary item ---- (.06)
Net income (loss) $ .03 ( $ .11)
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Diluted net income (loss) per share:
Income (loss) before extraordinary item $ .02 $ .17
Extraordinary item ---- (.06)
Net income (loss) $ .02 ( $ .11)
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Shares used in computing basic net income (loss)
Per share 36,695,162 15,224,432
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Shares used in computing diluted net income (loss)
Per share 52,941,579 15,224,432
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