EXHIBIT 99.2-PRO-FORMA FINANCIAL INFORMATION
(IN THOUSANDS, EXCEPT SHARE DATA)
TWELVE MONTH ENDED TRANSIT CAROLINA SERVICE CAPITOL CARROLL RAINBOW CERTIFIED KJ UNAUDITED
DECEMBER 31, 1997 GROUP,INC. PACIFIC EXPRESS WAREHOUSE FULMER TRUCKING TRM,INC. TRANSPORT TRANS ADJ. PRO FORMA
- -----------------------------------------------------------------------------------------------------------------------------------
(897)(b)
REVENUES 34,011 6,690 2,860 12,127 42,817 14,294 5,958 21,095 69,663 1,500 (c) 210,118
---------------------------------------------------------------------------------------------------- ----------
SALARIES & WAGES 7,665 2,510 899 3,547 5,730 3,937 2,410 4,191 12,591 (250)(e) 43,230
1,545 (c)
OPERATING EXPENSES 22,115 3,747 1,273 5,730 34,401 8,337 2,368 12,905 50,511 (186)(b) 142,746
DEPRECIATION
& AMORTIZATION 1,339 362 306 1,537 447 254 760 1,688 2,997 (640)(c) 9,050
GOODWILL ADJ. 271 - - - - - - - 782 (d) 1,053
GENERAL
& ADMINISTRATIVE 1,243 54 175 94 1,311 810 99 782 1,156 - 5,724
(184)(c)
INTEREST EXPENSE 1,045 155 54 680 537 153 275 409 1,346 1,325 (d) 5,795
---------------------------------------------------------------------------------------------------- ----------
TOTAL EXPENSES 33,678 6,828 2,707 11,588 42,426 13,491 5,912 19,975 68,601 2,392 207,598
---------------------------------------------------------------------------------------------------- ----------
INCOME (LOSS) FROM 333 (138) 153 539 391 803 46 1,120 1,062 (1,789) 2,520
CONT. OPERATIONS BEFORE
INCOME TAXES
INCOME TAXES ATTR. 71 (55) 61 217 156 321 18 448 440 (1,412)(f) 265
TO CONT. OPERATIONS
---------------------------------------------------------------------------------------------------- ----------
INCOME (LOSS) FROM 262 (83) 92 322 235 482 28 672 622 (377) 2,255
CONT. OPERATIONS
==================================================================================================== ==========
11,094,207 WEIGHTED AVERAGE NO OF SHARES-BASIC 18,778,967
========== ==========
11,094,207 WEIGHTED AVERAGE NO OF SHARES-DILUTED 19,997,189
========== ==========
.02 EARNINGS PER SHARE-BASIC 0.12
========== ==========
.02 EARNINGS PER SHARE-DILUTED 0.11
========== ==========
NOTES TO PRO FORMA COMBINED FINANCIAL STATEMENTS
(a) ON JUNE 17,1998 TRANSIT GROUP, INC. (THE "COMPANY") COMPLETED THE
ACQUISITION OF KJ TRANSPORTATION, INC. ("KJ") THE COMPANY HAD
COMPLETED SEVEN ACQUISITIONS PRIOR TO THE ACQUISITION OF KJ. A
RECAP OF THE COMPANY'S ACQUISITIONS IS AS FOLLOWS:
DATE CASH PERIODS SHARES
COMPANY ACQUIRED PAID(MIL) PRESENTED ISSUED
------- -------- --------- --------- ------
KJ TRANSPORTATION, INC. JUNE 17, 1998 $3.5 1/1/97-12/31/97 878,688
CERTIFIED TRANSPORT, INC. MAY 5, 1998 $1.5 1/1197-12/31/97 1,072,000
TRM, INC. JANUARY 31, 1998 $0.2 1/1/97-12/31/97 366,000
RAINBOW TRUCKING, INC. DECEMBER 30, 1997 - 1/1/97-12/31/97 679,000
CARROLL FULMER, INC. AUGUST 29, 1997 - 1/1/97-8/28/97 4,167,000
SERVICE EXPRESS, INC. AUGUST 15, 1997 - 1/1/97-8/14/97 903,000
CAPITOL WAREHOUSE, INC. AUGUST 15, 1997 - 1/1/97-8/14/97 641,000
CAROLINA PACIFIC
DISTRIBUTORS, INC. JULY 11, 1997 $3.7 1/1/97-7/10/97 1,733,000
THE PRO FORMA 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 ELIMINATE INTERCOMPANY TRANSACTIONS.
(c) TO REFLECT ADDITIONAL INTEREST AND DEPRECIATION EXPENSE INCURRED IN
CONNECTION WITHTHE PURCHASE BY THE COMPANY OF CERTAIN ADDITIONAL
PRODUCTIVE ASSETS FROM AN AFFILIATE OF CAROLINA PACIFIC DISTRIBUTORS,
INC. AND THE ASSUMPTION OF RELATED BORROWINGS, AND THE CAPITAL LEASE
BY THE COMPANY OF ADDITIONAL PRODUCTIVE ASSETS FROM AFFILIATES OF
CARROLL FULMER, INC.
(d) TO REFLECT ADDITIONAL INTEREST EXPENSE AS A RESULT OF FINANCING CASH
PAID AT CLOSING, THE ISSUANCE OF SHARES AT FAIR MARKET VALUE OF THE
COMPANY'S COMMON STOCK TO THE SHAREHOLDERS OF THE ACQUIRED
COMPANIES AND EXPENSES ASSOCIATED WITH THE ACQUISITIONS. IN
CONNECTION WITH THE ACQUISITIONS, GOODWILL OF APPROXIMATELY $42.0
MILLION WAS RECORDED. SUCH GOODWILL WILL BE AMORTIZED OVER A 40-YEAR
PERIOD.
(e) TO REFLECT CERTAIN ADJUSTMENTS TO SALARIES AND EMPLOYEE BENEFITS
RESULTING FROM THE ACQUISITION OF CAROLINA PACIFIC DISTRIBUTORS, INC.
(f) TO REFLECT UTILIZATION OF NET OPERATING LOSS CARRYFORWARD.
EXHIBIT 99.2-PRO-FORMA FINANCIAL INFORMATION
(IN THOUSANDS, EXCEPT SHARE DATA)
(A) (B) (C) (D)
SIX MONTHS ENDED TRANSIT CERTIFIED KJ PRO FORMA UNAUDITED
JUNE 30, 1998 GROUP,INC. TRANSPORT TRANSPORTATION ADJUSTMENTS PRO FORMA
- ------------------------------------------------------------------------------------------------------------------
REVENUES 61,839 6,656 33,834 (196) (a) 102,133
------------------------------------------------------------------------------------
SALARIES & WAGES 13,580 1,462 6,149 - 21,191
OPERATING EXPENSES 39,616 4,087 25,617 69,320
DEPRECIATION & AMORTIZATION 2,992 322 1,131 (640) (b) 3,862
GOODWILL ADJUSTMENT 57 (c)
GENERAL & ADMINISTRATIVE 1,765 190 219 2,174
INTEREST EXPENSE 1,671 180 634 31 (d) 2,516
-----------------------------------------------------------------------------------
TOTAL EXPENSES 59,624 6,241 33,750 (552) 99,063
-----------------------------------------------------------------------------------
PRE-TAX INCOME 2,215 415 84 356 3,070
INCOME TAXES 209 84 31 12 (e) 336
----------------------------------------------------------------------------------
NET INCOME 2,006 331 53 344 2,734
==================================================================================
WEIGHTED AVERAGE NO OF SHARES-BASIC 22,881,021
===============
WEIGHTED AVERAGE NO OF SHARES-DILUTED 24,270,509
===============
EARNINGS PER SHARE-BASIC 0.12
===============
EARNINGS PER SHARE-DILUTED 0.11
===============
(A) CONSOLIDATED STATEMENT OF OPERATIONS FOR THE SIX MONTHS ENDED JUNE 30,
1998 FOR TRANSIT GROUP, INC.
(B) STATEMENT OF OPERATIONS FOR THE FOUR MONTHS ENDED APRIL 30, 1998 FOR
CERTIFIED TRANPORT, INC. ("CTI") WHICH WAS ACQUIRED BY TRANSIT GROUP
ON MAY 5, 1998.
(C) STATEMENT OF OPERATIONS FOR THE FIVE AND ONE HALF MONTHS ENDED JUNE
15, 1998 FOR KJ TRANSPORTATION, INC. ("KJ") WHICH WAS ACQUIRED BY
TRANSIT GROUP ON JUNE 16, 1998.
(D) PRO FORMA ADJUSTMENTS
(a) TO ADJUST FOR GAIN ON SALE OF REVENUE EQUIPMENT REALIZED BY
CTI AND KJ.
(b) TO REFLECT IMPACT OF BASIS STEP UP ON FIXED ASSETS AND ADJUSTMENT OF
USEFUL LIVES OF EQUIPMENT TO COMPLY WITH COMPANY POLICY.
(c) TO REFLECT AMORTIZATION OF GOODWILL
(d) TO REFLECT INTEREST EXPENSE ASSOCIATED WITH NEW BORROWINGS
INCURRED IN CONNECTION WITH THE ACQUISITION OF CTI and KJ AT AN
AVERAGE INTEREST RATE OF 8.20%.
(e) TO REFLECT INCOME TAX EFFECT OF PROFORMA ADJUSTMENTS.