Exhibit 7.2 - Pro forma Financial Information
(in thousands, except shares)
Unaudited Unaudited
Transit Carolina Service Capitol Carroll Pro Forma Pro Forma
Group, Inc. Pacific Express Warehouse Fulmer Adjustments Combined
Current assets $ 284 $ 973 $ 792 $ 1,668 $ 10,033 $ 13,750
Property and equipment 4 1,787 1,243 12,896 3,842 $ 6,460 (b) 26,232
Goodwill 23 33,725 (c) 33,748
Other noncurrent assets 6,764 - - 68 1,523 8,355
----------- -------- -------- --------- -------- ----------- ---------
Total assets $ 7,052 $ 2,760 $ 2,035 $ 14,632 $ 15,421 $ 40,185 $ 82,085
=========== ======== ======== ========= ======== =========== =========
Current debt $ - $ 711 $ 516 $ 3,734 $ 5,207 $ 2,759 (b) $ 12,927
Other current liabilities 12,887 407 152 1,900 5,182 20,528
Long-term debt - 1,441 417 7,549 2,691 9,264 (b) 21,890
528 (b)
----------- -------- -------- --------- -------- ----------- ---------
Total liabilities 12,887 2,559 1,085 13,183 13,080 12,551 55,345
----------- -------- -------- --------- -------- ----------- ---------
Stockholders' equity
(deficit) (5,835) 201 950 1,449 2,341 44,436 (c) 26,740
----------- -------- -------- --------- -------- ----------- ---------
Total liabilities &
stockholders equity $ 7,052 $ 2,760 $ 2,035 $ 14,632 $ 15,421 $ 27,634 $ 82,085
=========== ======== ======== ========= ======== =========== =========
For the six months ended June 30, 1997
-------------------------------------------------------------------------------------
(in thousands, except shares)
Unaudited Unaudited
Transit Carolina Service Capitol Carroll Pro Forma Pro Forma
Group, Inc. Pacific Express Warehouse Fulmer Adjustments Combined
Revenues $ - $ 4,722 $ 2,288 $ 9,628 $ 34,645 $ 1,500 (b) $ 52,783
----------- -------- -------- --------- -------- ----------- ---------
Expenses
Salaries and wages expense - 1,780 674 2,667 4,654 (250) (d) 11,451
1,926 (b)
Operating expense - 2,298 429 4,992 28,038 (1,281) (b) 34,476
Depreciation and amortization - 255 266 1,256 251 353 (e) 3,283
836 (c)
General and administration 66 (b)
expense 268 43 148 32 1,175 (108) 1,558
Interest expense - 68 45 517 386 388 (f) 1,404
Other expense - 518 596 (244) (58) (500) 312
Total expenses 268 4,962 2,158 9,220 34,446 1,156 52,210
----------- -------- -------- --------- -------- ----------- ---------
Operating income (loss) (268) (240) 130 408 199 344 573
Provision for income taxes - 45 (62) (190) (97) 299 (5)
----------- -------- -------- --------- -------- ----------- ---------
Income (loss) before
discontinued operations (268) (195) 68 218 102 643 568
Discontinued operations (13,570) - - - - - (13,570)
----------- -------- -------- --------- -------- ----------- ---------
Net income (loss) $ (13,838) $ (195) $ 68 $ 218 $ 102 $ 643 $ (13,002)
=========== ======== ======== ========= ======== =========== =========
Loss per common share:
Continuing operations $ (0.13) $ 0.01
Discontinued operations (2.77) (0.95)
----------- ---------
Total $ (2.90) $ (0.94)
=========== =========
Weighted average number
of shares 4,909,528 14,186,037
=========== ==========
>PAGE>
For the twelve months ended December 31, 1996
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(in thousands, except shares)
Unaudited Unaudited
Transit Carolina Service Capitol Carroll Pro Forma Pro Forma
Group, Inc. Pacific Express Warehouse Fulmer Adjustments Combined
Revenues $ 23,404 $ 11,691 $ 4,428 $ 16,920 $ 69,290 $ 3,000 (b) $ 105,329
$ (23,404) (g)
Expenses
Salaries and wages expense 13,377 4,528 1,263 4,661 9,308 (1,016) (d) 22,676
3,932 (b)
(13,377) (g)
Operating expense 7,126 5,533 1,875 8,705 56,076 4,713 (b) 69,624
(14,404) (g)
Depreciation and amortization 1,857 957 620 2,512 503 711 (e) 6,559
1,124 (c)
132 (b)
General and administration (1,857) (g)
expense 5,335 37 711 443 2,351 (4,585) (g) 4,292
Interest expense 717 226 114 1,068 772 280 (f) 2,460
(717) (g)
Other expense 141 375 (33) (487) (116) (141) (g) (261)
----------- -------- -------- --------- -------- ----------- ---------
Total expenses 28,553 11,656 4,550 16,902 68,894 (25,205) 105,350
----------- -------- -------- --------- -------- ----------- ---------
Operating income (loss) (5,149) 35 (122) 18 396 4,801 (21)
Provision for income taxes - (103) 19 (15) (195) 294 (h) -
----------- -------- -------- --------- -------- ----------- ---------
Net income (loss) $ (5,149) $ (68) $ (103) $ 3 $ 201 $ 5,095 $ (21)
=========== ======== ======== ========= ======== =========== =========
Loss per common share $ (1.48) $ (0.04)
=========== =========
Weighted average number
of shares 3,758,671 11,202,180
=========== ==========
NOTES TO UNAUDITED PRO FORMA COMBINED FINANCIAL STATEMENTS:
(a) On August 29, 1997, Transit Group, Inc. (the "Company")
completed the acquisition of Carroll Fulmer Group, Inc.
("Fulmer"). Previously, on July 11, 1997, the Company completed
the acquisition of Carolina Pacific Distributors, Inc.
("Carolina"); and, on August 15, 1997, the company completed the
acquisitions of Capital Warehouse, Inc. ("Capital") and Service
Express, Inc. ("Service"). Pursuant to the Stock Purchase
Agreements executed at the closings (the "Agreements"), the
Company purchased all the outstanding capital stock of Fulmer, Capital,
Service and Carolina. The total purchase price of the four companies
approximates $35.5 million consisting of $3.7 million in cash, the
issuance of 4,166,667 shares of common stock of the Company and $1.9
million of debt to the shareholders of Fulmer, and the issuance of
641,283 shares of common stock of the Company to the shareholder of
Capital and 903,226 shares of Company stock to the shareholder of
Service and the issuance of 1,733,000 shares of common stock of the
Company to the shareholders of Carolina, and the assumption of
approximately $0.6 million of debt. The Company's and Service's
financial statements are prepared on a calendar year-end basis while
Fulmer used a fiscal year ended May 31, 1997 and Capital used a fiscal
year ended February 29, 1997 and Carolina used a fiscal year ended
September 30, 1996. Accordingly, the accompanying unaudited pro forma
combined financial statements combine the December 31, 1996 and
June 30, 1997 financial statements of the Company and Service, and
the May 31, 1997 and August 31, 1997 financial statements of Fulmer,
and the February 29, 1997 and August 31, 1997 financial statements
of Capital, and the September 30, 1996 and June 30, 1997 financial
statements of Carolina, respectively. Such financial information is
intended to reflect the combined financial position and results of
operations as of each of the periods presented and is not necessarily
indicative of future combined financial position or results of operations.
(b) To reflect the purchase by the Company of certain additional
productive assets from an affiliate of Carolina and the assumption
of related borrowings, and the capital lease by the Company of additional
productive assets from affiliates of Fulmer.
(c) To reflect the APB 16 purchase accounting adjustments including
the financing of $3.5 million in cash paid at closing, the issuance of
7,444,176 shares at fair market value of the Company's common stock
to the shareholders of Fulmer, Capital, Service and Carolina, notes payable
of $2.5 million, and expenses associated with the acquisitions. In
connection with the acquisitions, goodwill of approximately $33.7 million
was recorded. Such goodwill will be amortized over a 30-year period.
(d) To reflect certain adjustments to salaries and employee
benefits expense resulting from the acquisition of Carolina.
(e) To eliminate the depreciation expense associated with certain
assets not acquired in the purchases of Carolina.
(f) To reflect interest expense associated with new borrowings
acquired in connection with the acquisition at an average annual
interest rate of 8%.
(g) To eliminate the discontinued parcel delivery and courier
operations at Transit Group, Inc.
(h) To reflect the utilization of the Company's net operating
loss carryforwards to offset Fulmer, Capital, Service and Carolina
taxable income.