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EXHIBIT 99.6
PRO FORMA COMBINED BALANCE SHEET
DECEMBER 31, 1997
(AMOUNTS IN THOUSANDS)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents ......................... $ 440
Restricted cash ................................... 3,300
Accounts receivable, net .......................... 1,248
Inventory ......................................... 2,711
Other current assets .............................. 575
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Total current assets ......................... 8,274
Property & equipment, net ............................. 1,512
Excess purchase price over net assets acquired, net 17,205
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Deferred financing costs .......................... 1,680
Other assets ...................................... 129
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Total assets ................................. $ 28,800
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LIABILITIES & STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accrued expenses ............. $ 4,251
Due to stockholders/officers ...................... 5,250
Notes payable ..................................... 2,230
Current maturities of long term debt .............. 266
Other current liabilities ......................... 622
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Total current liabilities .................... 12,619
Long term portion of capital leases ............... 10
Long term debt, less current maturities ........... 7,727
Debt discount ..................................... (1,647)
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Total liabilities ............................ 18,709
STOCKHOLDERS' EQUITY:
Common stock ...................................... 52
Warrants outstanding .............................. 2,376
Additional paid in capital ........................ 14,542
Retained earnings (accumulated deficit) ........... (6,879)
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Total stockholders' equity ................... 10,091
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Total liabilities & stockholders' equity ..... $ 28,800
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PRO FORMA COMBINED STATEMENT OF INCOME
YEAR ENDED DECEMBER 31, 1997
(AMOUNTS IN THOUSANDS)
COMPANIES ACQUIRED
HISTORICAL --------------------------------------- TOTAL
----------- HIGH PRESS PRO FORMA PRO FORMA
WHEELS PERFORMANCE PASS ADJUSTMENTS(1) COMBINED
----------- ----------- ----- -------------- ---------
Net sales .................................. $ 7,491 $ 12,890 $ 8,662 $ -- $ 29,043
Cost of sales .............................. 6,765 9,913 5,626 -- 22,304
Gross profit ............................... 726 2,977 3,036 -- 6,739
Selling, general & administrative expense .. 5,964 3,340 2,464 -- 11,768
Amortization of intangible assets .......... -- -- -- 431(2) 431
Operating income ........................... (5,238) (363) 572 (431) (5,460)
Interest expense (income) .................. 94 26 -- 1,519(3) 1,639
Other expense .............................. -- -- -- --
Income before income taxes ................. (5,332) (389) 572 (1,950) (7,099)
Income tax expense (benefit) ............... -- -- -- (534)(4) (534)
Net income (loss) from continuing operations (5,332) (389) 572 (1,416) (6,565)
Discontinued operations .................... 1,460 -- -- -- 1,460
-------- -------- -------- -------- --------
Net income (loss) .......................... $ (6,792) $ (389) $ 572 $ (1,416) $ (8,025)
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(1) Pro forma adjustments reflect the purchases of High Performance and Press
Pass as if the purchases were made on January 1, 1997.
(2) Provides for the pro forma increase from January 1, 1997 in amortization
expense based on amortizing the goodwill associated with the purchases of
High Performance and Press Pass of $17.2 million over 40 years.
(3) Reflects the effect on interest expense of the incurrence of $4.9 million
in debt to effect the High Performance acquisition and $4.8 in debt to
effect the Press Pass acquisition. $7.7 million of the debt used to finance
these acquisitions bears interest at the London Interbank Offering Rate
plus 3.0%, or approximately 8.8% for the year ended December 31, 1997, $1.0
million of the debt bears interest at 8.0% and the other $1.0 million of
debt bears interest at 10.0%. This amount also includes $0.3 million for
amortization of deferred financing costs of $1.6 million and $0.3 million
for amortization of debt discount of $1.6 million incurred to obtain
financing to effect the acquisitions of High Performance and Press Pass.
(4) Reflects the net tax benefit available to the total combined company's
income from the net operating loss of High Performance, offset by the tax
expense on the income of Press Pass, at an effective rate of 40.0%, after
adjustments for interest as noted in note 3 above.