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SWISHER INTERNATIONAL, INC. AND SURFACE DOCTOR
PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME
(UNAUDITED) YEAR ENDED OCTOBER 31, 1995
Pro Forma
Adjustments
Swisher Surface Increase Pro Forma
International, Inc. Doctor (Decrease) Combined
------------------- ------------- --------------- -------------
Revenues
Product Sales to Franchisees $ 2,359,461 $ 507,739 $ - $ 2,867,200
Service Fees 1,382,852 - - 1,382,852
Royalties 1,192,336 133,490 - 1,325,826
Marketing Fees 45,864 - - 45,864
Revenue from Company
Owned Operations 1,775,585 335,373 - 2,110,958
Initial franchise sales 934,118 920,603 - 1,854,721
Other Income 272,318 11,072 - 283,390
--------------- ------------- --------------- -------------
Total Revenues 7,962,534 1,908,277 - 9,870,811
Costs and Expenses
Cost of Revenues 4,054,660 645,093 - 4,699,753
Selling, General and
Administrative 3,124,145 1,034,864 19,574 (a) 4,178,583
Interest Expense 162,110 - - 162,110
--------------- ------------- --------------- -------------
Total Costs and Expenses 7,340,915 1,679,957 19,574 9,040,446
Income Before Taxes 621,619 228,320 (19,574) 830,365
--------------- ------------- --------------- -------------
Income Tax Expense 246,000 - 82,664 (a) 328,664
--------------- ------------- --------------- -------------
Net Income $ 375,619 $ 228,320 $ (102,238) $ 501,701
=============== ============= =============== =============
Net Income per Common Share $ 0.20 $ 0.24
=============== =============
Weighted Average Number of
Common Shares and Common
Share Equivalents Outstanding 1,904,258 200,000 (b) 2,104,258
=============== =============== =============
See notes to unaudited pro forma condensed combined financial statements.
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2
SWISHER INTERNATIONAL, INC. AND SURFACE DOCTOR
PRO FORMA CONDENSED COMBINED STATEMENT OF INCOME
(UNAUDITED) NINE MONTHS ENDED JULY 31, 1996
Pro Forma
Adjustments
Swisher Surface Increase Pro Forma
International, Inc. Doctor (Decrease) Combined
------------------- ------------- --------------- -------------
Revenues
Product Sales to Franchisees $ 2,325,088 $ 410,569 $ - $ 2,735,657
Service Fees 1,251,738 - - 1,251,738
Royalties 1,169,552 115,950 - 1,285,502
Marketing Fees 34,622 - - 34,622
Revenue from Company
Owned Operations 1,882,225 219,498 - 2,101,723
Initial franchise sales 382,781 396,493 - 779,274
Other income 425,969 7,325 - 433,294
--------------- ------------- --------------- -------------
Total Revenues 7,471,975 1,149,835 - 8,621,810
Costs and Expenses
Cost of Revenues 3,746,761 411,132 - 4,157,893
Selling, General and
Administrative 3,037,387 543,157 14,631 (a) 3,595,175
Interest Expense 184,806 - - 184,806
--------------- ------------- --------------- -------------
Total Costs and Expenses 6,968,954 954,289 14,631 7,937,874
Income Before Income Taxes
and Non-Recurring Items 503,021 195,546 (14,631) 683,936
--------------- ------------- --------------- -------------
Non-Recurring Item 77,466 - - 77,466
--------------- ------------- --------------- -------------
Income Tax Expense 227,487 - 70,899 (a) 298,386
--------------- ------------- --------------- -------------
Net Income $ 353,000 $ 195,546 $ (85,530) $ 463,016
=============== ============= =============== =============
Net Income per Common Share $ 0.19 $ 0.23
=============== =============
Weighted Average Number of
Common Shares and Common
Share Equivalents Outstanding 1,853,015 133,020 (b) 1,986,035
=============== =============== =============
See notes to unaudited pro forma condensed combined financial statements.
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3
SWISHER INTERNATIONAL, INC. AND SURFACE DOCTOR
NOTES TO PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENT
(a) The following proforma adjustments are incorporated in the pro forma
condensed combined statements of income:
Year Ended Nine Months
October 31, Ended July 31,
1995 1996
----------- --------------
1. Increase in amortization expense
resulting from goodwill. $ (17,241) $ (12,931)
2. Increase in amortization expense
resulting from adjustment to
carrying amount of trademarks. (2,333) (1,700)
3. Decrease in income tax expense
associated with 1 and 2 above. 7,751 5,734
4. Increase in income tax expense resulting
from the change of Surface Doctor from
S-Corporation to C-Corporation status. (90,415) (76,633)
----------- ----------
$ (102,238) $ (85,530)
=========== ==========
(b) Represents the issuance of 200,000 shares of Swisher International,
Inc. stock in exchange for the assets of Surface Doctor.
(c) Operations of Surface Doctor for the period November 1, 1995, through
December 31, 1995, are included in both the pro forma statements of
income for the year ended December 31, 1995, and the nine months ended
July 31, 1996. Revenues and net income for this period, derived from
statements of income provided by Professional Carpet Systems, Inc.,
amounted to $305,312 and $73,543, respectively.
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