Pro Forma Financial Information
The Westwood Group, Inc.
and Subsidiaries
Pro Forma Condensed Consolidated
Income Statement
at
December
31, 1998
(unaudited)
-Pro Forma
Adjustments-
Historical Back Bay(a) Other Pro Forma
Operating Revenue:
Pari -
mutuel commissions $15,373,562 $15,373,562
Restaurants 0 0
Concessions 1,758,670 1,758,670
Other 1,839,100 1,839,100
--------------------------------------------------------------
18,971,332 0 0 18,971,332
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Cost of revenue:
Wages, taxes and benefits 7,248,903 7,248,903
Purses 4,470,893 4,470,893
Cost of food and beverage 524,296 524,296
Administrative 1,541,658 100,000 (c) 1,641,658
General operating 3,720,757 3,720,757
Depreciation and
amortization 700,106 700,106
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Total cost of
revenue 18,206,613 0 100,000 18,306,613
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Income from operations 764,719 0 -100,000 I 664,719
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Other income (expense)
Interest income
(expense), net -398,284 -26,396 (b) -424,680
Equity income (loss)
in investments 525,292 -525,292 (d) 0
Other income, net 0 0
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Total other
income (expense) 127,008 0 -551,688 -424,680
Income from operations before
provision for
income taxes and
minority interest 891,727 0 -651,688 240,039
in subsidiary
Provision for
income tax 82,400 82,400
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Income before minority
interst in 809,327 0 -651,688 157,639
subsidiary
Minority interest in
subsidiary 0 0
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Income from
continuing operations 809,327 0 -651,688 157,639
Loss from disposal
of investment / -1,867,307 (b) -1,867,307
subsidiary
Gain from discontinued
harness racing
operations ( net of
income taxes of
$20,400 in 1998) 1,000,961 1,000,961
Net Income (Loss) $1,810,288 $0 -$2,518,995 -$708,707
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Basic per share data:
Income from
continuing operations $0.64 $0.00 -$0.52 $0.12
Loss from disposal of
investment / $0.00 $0.00 -$1.48 -$1.48
subsidiary
Income (loss) from
discontinued $0.79 $0.00 $0.00 $0.79
operations
----------------------------------------------------------------
Net Income (Loss)
per share $1.44 $0.00 -$2.00 -$0.56
===================================================================
Basic weighted
average common shares 1,261,252 1,261,252 1,261,252 1,261,252
outstanding
===================================================================
Diluted per share data:
Income from continuing
operations $0.63 $0.00 -$0.51 $0.12
Income (loss)
from discontinued $0.00 $0.00 -$1.46 -$1.46
operations
Income (loss)
from discontinued $0.78 $0.00 $0.00 $0.78
operations
----------------------------------------------------------------
Net Income (Loss)
per share $1.41 $0.00 -$1.97 -$0.55
===================================================================
Diluted weighted
average common shares 1,281,243 1,281,243 1,281,243 1,281,243
outstanding
===================================================================
(a) To eliminate the assets and liabilities included in the balance sheet
of the Company's Back Bay Restaurant Group, Inc. (BBRG) investment (subsidiary).
(b) To reflect the basis of the transaction of the sale of BBRG.
(c) To reflect transaction costs incurred by the Company in the sale
of BBRG.
(d) To reflect the the elimination of the equity interest from BBRG
earned in 1998.