Exhibit 5
AUDIO COMMUNICATIONS NEWWORK, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
DECEMBER 31, 1995
Adjustments and FL SOUND
Eliminations AUCM Per Audited
Assets: Consolidated Debit Credit Per 10K Statements
Current Assets:
Cash and Cash Equivalents $ 1,142,042 $ 6,190,000(1) $ 114,793(1) $590,107 $ 226,728
226,728(2)
5,750,000(2)
Accts Receivable - Net 879,754 48,704(2) 519,754 408,704
Inventories 719,888 5,974(2) 359,888 365,974
Prepaid & Other 33,416 54,316(2) 33,416 54,316
---------- ----------- --------- -------- -----------
Total Current Assets 2,775,100 6,190,000 6,200,515 1,503,165 1,055,722
Property at Cost 7,470,216 2,219,700(2) 6,501,216 3,188,700
Accumulated Depreciation (3,142,999) 2,010,028(2) (3,142,999) (2,010,028)
---------- ----------- --------- ---------- -----------
Property - Net 4,327,217 2,010,028 2,219,700 3,358,217 1,178,672
Other Assets:
N/C Notes Receivable -0- 3,237(2) -0- 3,237
Intangible Assets 2,906,530 72,400(1) 76,215 1,541,922 76,215
1,292,208(2)
Goodwill 4,536,104 2,768,792(2) 1,994,040 -0-
Deposits - Other 13,734 14,100(2) 13,734 14,100
----------- ----------- --------- --------- -----------
Total - Other Assets 7,456,368 4,133,400 93,552 3,549,696 93,552
----------- ----------- ---------- ---------- -----------
Total Assets $14,558,685 $12,333,428 $8,513,767 $8,411,078 $ 2,327,946
=========== =========== ========== ========== ===========
AUDIO COMMUNICATIONS NETWORK, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONDENSED COMBINED BALANCE SHEET
DECEMBER 31, 1995
Liabilities and Stockholders' Adjustments and FL SOUND
Equity: Eliminations AUCM Per Audited
Consolidated Debit Credit Per 10K Statements
Current Liabilities:
Current Maturities of
Long Term Debt $ 1,205,697 $ 822,000(1) $ 1,104,000(1) $ 923,697 $ 669,077
669,077(2)
Current portion of obligations
under capital leases 12,697 12,697 -0-
Accounts payable and
accrued expenses 506,085 42,393(1) 548,478 172,687
172,687(2)
----------- ---------- ----------- ----------- ----------
Total Current Liabilities 1,724,479 1,706,157 1,104,000 1,484,872 841,764
Long-Term Debt 9,997,019 3,988,000(1) 9,896,000(1) 4,089,019 -0-
Deferred Compensation 50,000 50,000 -0-
Stockholders' Equity:
Common Stock 560,955 4,102(2) 560,955 4,102
Capital Surplus 5,011,451 5,011,451 -0-
Accumulated Earnings (Deficit) (2,785,219) 1,482,080(2) (2,785,219) 1,482,080
----------- ---------- ----------- ----------- ----------
Total 2,787,187 1,486,182 -0- 2,787,187 1,486,182
----------- ---------- ----------- ----------- ----------
Total - Liabilities &
Stockholders' Equity $14,558,685 $7,180,339 $11,000,000 $ 8,411,078 $2,327,946
=========== ========== =========== =========== ==========
AUDIO COMMUNICATIONS NETWORK, INC. AND SUBSIDIARIES
UNAUDITED PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
YEAR ENDED DECEMBER 31, 1995
Adjustments and FL SOUND
Revenue: Eliminations AUCM Per Audited
Consolidated Debit Credit Per 10K Statements
Total Revenue $11,464,410 $ $ $7,621,495 $3,842,915
Cost of Sales 5,232,517 3,061,675 2,170,842
----------- -------- -------- ---------- ----------
Gross Profit 6,231,893 4,559,820 1,672,073
Operating Expenses 2,985,590 232,676(3) 2,252,295 965,971
----------- -------- -------- ---------- ----------
Operating Income (Loss) 3,246,303 232,676 2,307,525 706,102
Interest Expense-Outside 984,218 446,106(3) 53,796(3) 538,112 53,796
Other:
(Income) (100,463) 100,463)
Deductions 31,579 31,579
Total-Other (Net) (68,884) (68,884)
----------- -------- -------- ---------- ----------
Income (Loss) Before D & R 2,330,969 446,106 286,472 1,838,297 652,306
Depreciation &
Amortization 1,661,404 489,734(3) 281,329(3) 1,171,670 281,329
Income (Loss) Before
Income Taxes 669,565 935,840 567,801 666,627 370,977
Provision for Taxes 57,500 57,500
----------- -------- -------- ---------- ----------
Net Income (Loss) $ 612,065 $935,840 $567,801 $ 609,127 $ 370,977
=========== ======== ======== ========== ==========
Earnings per share $ .27 $ .27
=========== ==========
NOTES TO FINANCIAL STATEMENTS
(1) On January 2, 1996 Audio Communications Network, Inc.
restructured its loan with SunTrust Bank, Central
Florida, N.A. to give Audio the ability to purchase
for cash the assets of Florida Sound Engineering
Company.
(2) The sale of the assets for $5,750,000 included the
MUZAK franchise business and its Pro Sound Division
with its accounts receivables, inventory and other
equipment at its fair market value and goodwill.
(3) To adjust Florida Sound Engineering's 1995 operations
to include additional expense incurred by Audio
Communications Network, Inc. and eliminate the former
owner's expenses which will not be incurred by the
Company.