Exhibit 99.6
INDEX TO UNAUDITED VESSEL LEASING LLC FINANCIAL STATEMENTS
Page
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Statement of Cash Flows for the year ended December 28, 2001 1
Statement of Operations for the year ended December 28, 2001 2
Statement of Financial Position as of December 28, 2001 3
Notes to Vessel Leasing LLC Financial Statements 4-5
VESSEL LEASING LLC
STATEMENT OF CASH FLOWS
DECEMBER 28, 2001
(DOLLARS IN THOUSANDS)
(UNAUDITED)
OPERATING ACTIVITIES
Net Loss $ (76)
Adjustments to Reconcile Net Loss to Net
Cash Provided by (Used in) Operating Activities:
Depreciation and Amortization 773
Other Operating Activities 14
Unearned Revenues 2,830
Accrued Interest 161
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Net Cash Provided by Operating Activities 3,702
INVESTING ACTIVITIES
Property Additions (47,757)
FINANCING ACTIVITIES
Long Term Debt Issued 43,251
Common Stock Issued 5,236
Preferred Stock 4,190
Long Term Debt Repaid (671)
Debt Issuance Costs (164)
Prepaid Guaranty Fee (1,974)
Restricted Cash (5,801)
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Net Cash Provided by Financing Activities 44,067
Net Increase in Cash and Cash Equivalents 13
Cash and Cash equivalents at Beginning of Period --
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Cash and Cash equivalents at End of Period $ 13
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Supplemental disclosure of cash flow information:
Cash paid for interest 907
Non-cash activities:
Capital Leases 3,924
The accompanying notes are an integral part of the financial statements.
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VESSEL LEASING LLC
STATEMENT OF OPERATIONS
FISCAL YEAR ENDED DECEMBER 28, 2001
(DOLLARS IN THOUSANDS)
(UNAUDITED)
OPERATING REVENUE $ 1,705
OPERATING EXPENSE
Depreciation and Amortization 731
Other 5
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736
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OPERATING INCOME 969
OTHER EXPENSE (INCOME)
Interest Income (64)
Interest Expense 1,109
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1,045
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NET LOSS $ (76)
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The accompanying notes are an integral part of the financial statements.
2
VESSEL LEASING LLC
STATEMENT OF FINANCIAL POSITION
DECEMBER 28, 2001
(DOLLARS IN THOUSANDS)
(UNAUDITED)
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents $ 12
Restricted Cash 5,801
Capital Lease Receivable - Short Term 86
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Total Current Assets 5,899
PROPERTIES-Net 43,101
CAPITAL LEASE RECEIVABLE - Long Term 3,825
OTHER ASSETS 2,096
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Total Assets $ 54,921
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LIABILITIES
CURRENT LIABILITIES
Current Portion of Long-Term Debt $ 2,885
Accrued Interest Payable - MARAD 161
Unearned Charter Revenue - Short Term 2,517
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Total Current Liabilities 5,563
LONG-TERM DEBT 39,695
UNEARNED CHARTER REVENUE - Long Term 313
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Total Liabilities 45,571
MEMBERS' EQUITY
Members' Interest 5,236
Preferred Members' Interest 4,190
Retained Earnings (76)
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Total Members' Equity 9,350
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Total Liabilities and Members' Equity $ 54,921
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The accompanying notes are an integral part of the financial statements.
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VESSEL LEASING LLC
NOTES TO FINANCIAL STATEMENTS
(DOLLARS IN THOUSANDS)
NOTE 1. SIGNIFICANT ACCOUNTING POLICIES
NATURE OF OPERATIONS
The operations of Vessel Leasing LLC ("Vessel Leasing") began in 2001 and
include the charter of equipment involved in barge transportation along inland
waterways. All of Vessel Leasing's equipment is chartered to American Commercial
Barge Line LLC ("ACBL"), a subsidiary of American Commercial Lines LLC ("ACL").
Vessel Leasing is a limited liability company owned 50% by Vectura Group, Inc.
("Vectura") and 50% by ACL.
FISCAL YEAR
Vessel Leasing follows an annual fiscal reporting period, which ends on the last
Friday in December. Financial statements are for the period ending December 28,
2001.
CASH AND CASH EQUIVALENTS
Cash on hand is restricted by amounts held in a depository account to repay one
year of principal and interest on debt. The amount currently restricted is
$5,801.
CAPITAL LEASE RECEIVABLE
In December, 2001 Vessel Leasing entered into a $3,924 capital lease agreement
with ACBL which will expire in 2016. In 2001, a payment of $13 was made. Future
payments are $432 in 2002, $586 in 2003, $568 in 2004, $455 in 2005, $455 in
2006 and $5,087 thereafter.
PROPERTIES
Properties, at cost, consist of the following:
Barges $43,832
Less Accumulated Depreciation 731
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$43,101
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Provisions for depreciation of properties are based on the estimated useful
lives computed on the straight-line method. Barges are depreciated over 25
years.
DEBT AMORTIZATION
Vessel Leasing amortizes debt costs over the term of the debt. Amortization
expense includes underwriting and guarantee fees. Amortization expense for 2001
was $42.
REVENUE RECOGNITION
Revenue from charter of barges is recognized proportionately as it is earned.
NOTE 2. DEBT
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Debt consists of the following:
Title XI Series A $19,424
Title XI Series B 7,388
Title XI Series C 15,768
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42,580
Current portion of long term debt 2,885
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Non-current portion long-term debt $ 39,695
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Vessel Leasing is financed by the United States of America Secretary of
Transportation Maritime Administration ("MARAD"). Interest is fixed at 6.14% on
the Series A loan and 5.65% on the Series B loan. Interest on the Series C loan
varies with the LIBOR rate plus 0.4% which was 2.39% at December 28, 2001.
Principal and interest payments are due semi-annually on the anniversary date of
the loan.
NOTE 3. RELATED PARTIES
Vessel Leasing is a limited liability company owned 50% by ACL and 50% by
Vectura. Each partner contributed $2,618 in common stock during 2001. ACL also
contributed $4,190 in preferred stock in 2001. All of Vessel Leasing's 2001
revenue of $1,705 was earned from ACBL, a subsidiary of ACL.
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