Exhibit 99.3
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
Set forth below are the unaudited pro forma condensed combined statements of
operations of Cohesant Technologies Inc. ("Cohesant") for the six months ended
May 31, 2005 and the year ended November 30, 2004, assuming the transaction
occurred at the beginning of the respective period.
The information presented below is for informational purposes only and is not
necessarily indicative of the actual results that would have occurred had the
acquisition been consummated at the beginning of the respective period, nor are
they necessarily indicative of future operating results of the combined
companies under the ownership and management of the Company.
The unaudited pro forma condensed combined financial information should be read
in conjunction with the financial statements and related notes.
PRO FORMA CONDENSED COMBINED
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED MAY 31, 2005
(UNAUDITED)
(US DOLLARS)
4279
Investments Adjustments
Ltd. for the Combined
Cohesant and affiliate transaction Pro Forma
------------ ------------ ------------ ------------
NET SALES $ 9,963,756 $ 2,360,842 $ (108,555)(1) $ 12,216,043
COST OF SALES 5,335,960 1,609,242 (108,555)(1) 6,836,647
------------ ------------ ------------ ------------
Gross profit 4,627,796 751,600 0 5,379,396
RESEARCH, DEVELOPMENT AND
ENGINEERING EXPENSES 443,249 443,249
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 3,205,680 684,932 (41,440)(2) 3,849,172
------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 3,648,929 684,932 (41,440) 4,292,421
------------ ------------ ------------ ------------
Income from operations 978,867 66,668 41,440 1,086,975
OTHER INCOME: 60,845 11,094 71,939
------------ ------------ ------------ ------------
INCOME BEFORE TAXES 1,039,712 77,762 41,440 1,158,914
INCOME TAX PROVISION (395,091) (1,545) (43,751)(3) (440,387)
------------ ------------ ------------ ------------
NET INCOME $ 644,621 $ 76,217 $ (2,311) $ 718,527
============ ============ ============ ============
EARNINGS PER SHARE:
BASIC $ 0.23
============
DILUTED $ 0.22
============
AVERAGE SHARES OF COMMON STOCK OUTSTANDING:
BASIC 3,095,099
============
DILUTED 3,194,889
============
OTHER DATA:
DEPRECIATION AND
AMORTIZATION $ 107,132 $ 16,271 $ 65,850 $ 189,253
============ ============ ============ ============
PRO FORMA CONDENSED COMBINED
STATEMENT OF OPERATIONS
FOR THE FISCAL YEAR END NOVEMBER 30, 2004
(UNAUDITED)
(US DOLLARS)
4279
Investments Adjustments
Ltd. for the Combined
Cohesant and affiliate transaction Pro Forma
------------ ------------- ------------ ------------
NET SALES $ 19,312,180 3,572,777 (182,398)(1) $ 22,702,559
COST OF SALES 9,384,241 2,277,919 (182,398)(1) 11,479,762
------------ ------------ ------------ ------------
Gross profit 9,927,939 1,294,858 0 11,222,797
RESEARCH, DEVELOPMENT AND
ENGINEERING EXPENSES 1,009,349 1,009,349
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES 6,088,932 1,035,138 28,118(2) 7,152,188
------------ ------------ ------------ ------------
TOTAL OPERATING EXPENSES 7,098,281 1,035,138 28,118 8,161,537
------------ ------------ ------------ ------------
Income from operations 2,829,658 259,720 (28,118) 3,061,260
OTHER INCOME: 71,376 (81,990) (10,614)
------------ ------------ ------------ ------------
INCOME BEFORE TAXES 2,901,034 177,730 (28,118) 3,050,646
INCOME TAX PROVISION (1,098,767) (33,504) (21,853)(3) (1,154,124)
------------ ------------ ------------ ------------
NET INCOME $ 1,802,267 144,226 (49,971) 1,896,523
============ ============ ============ ============
EARNINGS PER SHARE:
BASIC $ 0.62
============
DILUTED $ 0.60
============
AVERAGE SHARES OF COMMON STOCK OUTSTANDING:
BASIC 3,054,883
============
DILUTED 3,159,786
============
OTHER DATA:
DEPRECIATION AND
AMORTIZATION $ 247,169 $ 42,777 $ 170,700 $ 460,646
============ ============ ============ ============
NOTES TO PRO FORMA CONDENSED
COMBINED STATEMENTS OF OPERATIONS
(UNAUDITED)
(US DOLLARS)
(1) This adjustment reflects the elimination of sales between Cohesant and
4279 Investments Ltd. and affiliate.
(2) This adjustment reflects the addition (elimination) of expenses as
follows:
May 31, November 30,
2005 2004
--------- ---------
Amortization of intangibles resulting from the transaction $ 65,850 $ 170,700
Adjust rent expense to fair market value (45,384) (59,760)
Net effect of the elimination of related party adjustments (61,906) (82,822)
--------- ---------
Total (41,440) 28,118
--------- ---------
(3) This adjustment reflects the income tax change as a result of the other
items reflected in these notes and the conversion of 4279 Investments Ltd.
to the Company's effective tax rate.