MET-RX NUTRITION, INC. Exhibit 99.2
COMBINED BALANCE SHEET
- --------------------------------------------------------------------------------
September 30,
1999
(unaudited)
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 346,000
Accounts receivable 21,117,000
Other accounts receivable 43,000
Inventories 8,779,000
Prepaid expenses and other current assets 841,000
Deferred income taxes 106,000
-----------
Total current assets 31,232,000
PROPERTY AND EQUIPMENT, net 1,842,000
OTHER ASSETS 563,000
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$33,637,000
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MET-RX NUTRITION, INC. Exhibit 99.2
COMBINED BALANCE SHEET (Continued)
- --------------------------------------------------------------------------------
September 30,
1999
(unaudited)
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 6,078,000
Cash overdraft 2,862,000
Accrued expenses and other current liabilities 5,730,000
Current portion of term loan 1,625,000
Current portion of capital lease payable 60,000
------------
Total current liabilities 16,355,000
LINE OF CREDIT 11,772,000
CAPITAL LEASE PAYABLE 104,000
SUBORDINATED NOTE PAYABLE 4,000,000
TERM LOAN 13,875,000
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY:
Preferred stock:
MET-Rx Nutrition, Inc. Senior Preferred, $0.01 par value; 50,000 shares
authorized; 21,774 shares issued and outstanding 22,000
MET-Rx Nutrition, Inc. Junior Preferred, $0.01 par value; 50,000 shares
authorized; 1,000 shares issued and outstanding 1,000
Common stock:
MET-Rx Nutrition, Inc. Series A, $0.01 par value; 10,000,000 shares authorized;
900,000 shares issued and outstanding at September 30, 1999 9,000
MET-Rx Nutrition, Inc. Series B, $0.01 par value; 10,000,000 shares authorized;
75,000 shares issued and outstanding at September 30, 1999 1,000
Additional paid-in capital 26,629,000
Accumulated deficit (39,131,000)
------------
Total stockholders' (deficit) equity (12,469,000)
------------
$ 33,637,000
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MET-RX NUTRITION, INC. Exhibit 99.2
COMBINED STATEMENT OF OPERATIONS
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Nine months ended
September 30,
1999
(unaudited)
NET SALES $ 76,340,000
COST OF GOODS SOLD 42,876,000
------------
GROSS PROFIT 33,464,000
OPERATING EXPENSES:
Selling 14,439,000
General and administrative 11,071,000
------------
Total operating expenses 25,510,000
------------
INCOME FROM OPERATIONS 7,954,000
OTHER (EXPENSE) INCOME:
Interest expense, net (1,989,000)
Other income --
------------
Total other expense (1,989,000)
------------
INCOME BEFORE INCOME TAX PROVISION
AND EXTRAORDINARY ITEM 5,965,000
INCOME TAX PROVISION 2,383,000
------------
NET INCOME BEFORE EXTRAORDINARY ITEM 3,582,000
EXTRAORDINARY ITEM - WRITE-OFF OF DEFERRED
FINANCING COSTS (751,000)
------------
NET INCOME $ 2,831,000
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MET-RX NUTRITION, INC. Exhibit 99.2
COMBINED STATEMENT OF CASH FLOWS
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Nine months ended
September 30,
1999
(unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 2,831,000
Adjustments to reconcile net income to net cash (used in)
provided by operating activities:
Depreciation and amortization 529,000
Write-off of unamortized loan fees 751,000
Provision for bad debt 1,007,000
Provision for inventory reserves 1,818,000
Compensation costs related to stock options 343,000
Loss on disposal of assets (2,000)
Changes in operating assets and liabilities:
Accounts receivable (12,034,000)
Inventories (4,220,000)
Prepaid expenses and other assets (790,000)
Accounts payable 1,078,000
Cash overdraft 2,151,000
Accrued expenses and other liabilities 2,809,000
Due to/from affiliates 450,000
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Net cash (used in) provided by operating activities (3,279,000)
CASH FLOWS FROM INVESTING ACTIVITIES:
Cash paid for property and equipment (883,000)
------------
Net cash used in investing activities (883,000)
4
MET-RX NUTRITION, INC. Exhibit 99.2
COMBINED STATEMENT OF CASH FLOWS (Continued)
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Nine months ended
September 30,
1999
(unaudited)
CASH FLOWS FROM FINANCING ACTIVITIES:
Payment of dividends $(38,118,000)
Net borrowings on line of credit 4,742,000
Note payable - equipment lease 174,000
Payments on capital lease (41,000)
Borrowings on subordinated notes payable 4,000,000
Borrowings (payments) on term loan 10,600,000
Proceeds from issuing common and preferred stock 22,402,000
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Net cash provided by (used in) financing activities 3,759,000
------------
NET (DECREASE) INCREASE IN CASH
AND CASH EQUIVALENTS (403,000)
CASH AND CASH EQUIVALENTS, beginning of year 749,000
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CASH AND CASH EQUIVALENTS, end of year $ 346,000
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