Exhibit 99.2
GEOLOGISTICS CORPORATION
Pro Forma Condensed Consolidated Statements of Operations
For the Year Ended December, 31 1997
(Unaudited)
(IN THOUSANDS, EXCEPT SHARE DATA)
CAS Pro Forma Pro Forma
Historical (A) Acquisition (D) Adjustments Results
-------------- --------------- ------------ -------
Revenues $ 978,249 $ 47,116 $ - $ 1,025,365
Transportation and other direct costs 759,049 36,854 - 795,903
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Net revenues 219,200 10,262 - 229,462
Selling, general and administrative expenses 204,733 5,982 - 210,715
Depreciation and amortization 30,398 34 1,150 (F) 31,582
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Operating profit(loss) (15,931) 4,246 (1,150) (12,835)
Interest expense, net (8,576) (142) (1,349) (H) (10,067)
Other income(expense) (211) (34) - (245)
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Loss before income taxes and minority interest (24,718) 4,070 (2,499) (23,147)
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Income tax expense (benefit) (8,420) 1,606 (539) (H) (7,353)
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Loss before minority interest (16,298) 2,464 (1,960) (15,794)
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Minority interest (1,067) - - (1,067)
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Loss before extraordinary loss (17,365) 2,464 (1,960) (16,861)
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Extraordinary loss on early extiguishment of debt-
net of tax benefit of $1,528 (2,293) - - (2,293)
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Net loss (19,658) 2,464 (1,960) (19,154)
Preferred stock dividends 1,800 1,800
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Loss applicable to common stock $ (19,658) $ 2,464 $ (3,760) $ (20,954)
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Basic loss per common share:
Loss before extraordinary loss $ (8.47) $ 1.20 $ (0.96) $ (8.23)
Extraordinary loss (1.12) - - (1.12)
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Net loss $ (9.59) $ 1.20 $ (1.83) $ (10.22)
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Diluted loss per common share
Loss before extraordinary loss $ (8.47) $ 1.20 $ (0.96) $ (8.23)
Extraordinary loss (1.12) - - (1.12)
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Net loss $ (9.59) $ 1.20 $ (1.83) $ (10.22)
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Weighted average number of common and
common equivalent shares outstanding 2,049,800 2,049,800 2,049,800 2,049,800
GEOLOGISTICS CORPORATION
Pro Forma Condensed Consolidated Statements of Operations
For the Six Months Ended June 30, 1998
(Unaudited)
(IN THOUSANDS, EXCEPT SHARE DATA)
CAS Pro Forma Pro Forma
Historical (A) Acquisition (D) Adjustments Results
-------------- --------------- ----------- -------
Revenues $ 736,875 $ 28,435 $ - $ 765,310
Transportation and other direct costs 554,480 22,460 - 576,940
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Net revenues 182,395 5,975 - 188,370
Selling, general and administrative expenses 174,630 3,701 - 178,331
Depreciation and amortization 7,713 58 575 (F) 8,346
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Operating profit(loss) 52 2,216 (575) 1,693
Interest expense, net (7,337) (60) (674) (H) (8,071)
Other income(expense) 146 (161) - (15)
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Loss before income taxes and minority interest (7,139) 1,995 (1,249) (6,393)
Income tax expense (benefit) (2,236) 798 (270) (H) (1,708)
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Loss before minority interest (4,903) 1,197 (979) (4,685)
Minority interest (373) - - (373)
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Net loss (5,276) 1,197 (979) (5,058)
Preferred stock dividends 900 900
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Loss applicable to common stock $ (5,276) $ 1,197 $ (1,879) $ (5,958)
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Basic loss per common share: $ (2.50) $ 0.57 $ (0.89) $ (2.82)
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Diluted loss per common share $ (2.50) $ 0.57 $ (0.89) $ (2.82)
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Weighted average number of common and
common equivalent shares outstanding 2,113,126 2,113,126 2,113,126 2,113,126
GEOLOGISTICS CORPORATION
Pro Forma Condensed Consolidated Balance Sheet
June 30, 1998
(Unaudited)
(IN THOUSANDS, EXCEPT SHARE DATA)
Preferred
Debt Stock CAS Pro Forma Pro Forma
Historical (A) Issuance (B) Issuance (C) Acquisition (D) Adjustments Results
-------------- ------------ ------------ --------------- ----------- -------
Current assets:
Cash and cash equivalents $ 24,518 $ 14,785 $ 14,550 $ - $ (29,490) (E) $ 24,363
Accounts receivable 260,714 - - - - 260,714
Deferred income taxes 11,614 - - - - 11,614
Prepaid expenses 14,910 - - 59 - 14,969
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Total current assets 311,756 14,785 14,550 59 (29,490) 311,660
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Property and equipment, at cost 91,856 - - 649 - 92,505
Accumulated depreciation (12,766) - - - - (12,766)
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Net property and equipment 79,090 - - 649 - 79,739
Notes receivable, less current portion 1,772 - - - - 1,772
Deferred income taxes 19,453 - - - - 19,453
Goodwill, net 53,455 - - 28,762 - 82,217
Intangible assets, net 10,607 215 - - - 10,822
Other assets 14,973 - - - - 14,973
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$ 491,106 $ 15,000 $ 14,550 $ 29,470 $ (29,490) $ 520,636
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Current liabilities
Accounts payable $ 106,649 $ - $ - $ - $ - $ 106,649
Accrued expenses 157,902 - - 2,606 (376) (F) 160,132
Income taxes payable 5,181 - - - - 5,181
Current portion of long term debt 13,139 - - - - 13,139
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Total current liabilities 282,871 - - 2,606 (376) 285,101
Long-term debt, less current portion 133,453 15,000 - - - 148,453
Other noncurrent liabilities 51,938 - - - 450 (G) 52,388
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Total liabilities 468,262 15,000 - 2,606 74 485,942
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Minority interest 2,018 - - - - 2,018
Stockholders' equity:
Preferred stock - - 14,550 - - 14,550
Common stock 2 - - 1 (1) (E) 2
Additional paid-in-capital 54,667 - - 26,863 (29,563) (E) 51,967
Accumulated deficit (34,178) - - - - (34,178)
Notes receivable from stockholders (200) - - - - (200)
Cumulative translation adjustment 535 - - - - 535
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Total stockholders' equity 20,826 - 14,550 26,864 (29,564) 32,676
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$ 491,106 $ 15,000 $ 14,550 $ 29,470 $ (29,490) $ 520,636
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GEOLOGISTICS CORPORATION
Notes to the Pro Forma Condensed Consolidated Financial Statements
(Unaudited)
(IN THOUSANDS, EXCEPT SHARE DATA)
(A) Reflects historical condensed consolidated balance sheet of the Company
as of December 31, 1997 and the historical condensed consolidated statements
of operations for the six months ended June 30, 1998 and for the year ended
December 31, 1997.
(B) Reflects the $15 million New Credit Facility and related deferred
financing fees of $.2 million. The New Credit Facility was executed July 10,
1998 with a maturity date of October 15, 2007 and a current interest rate of
LIBOR plus 3.25% (8.83% at July 10, 1998). The funds provided by the facility
were primarily used for the acquisition of Caribbean Air Services ("CAS") and
to pay fees and expenses related thereto. See exhibit 10.27 for additional
terms of the agreement
(C) Reflects the sale of 15,000 shares of Preferred Stock on July 13, 1998
for aggregate consideration of $14.6 million which was primarily used to fund
the CAS acquisition and to pay fees and expenses related thereto.
(D) Reflects the opening balance sheet of CAS as of July 13, 1998 and Pro
Forma results of operations for the six months ended June 30, 1998 and for
the year ended December 31, 1997.
(E) Represents the elimination of the cash paid to acquire CAS, the
investment in CAS and the payment of dividends related to the sale of the
preferred stock as if the sale occurred on January 1, 1997.
(F) The Company estimates as of July 13, 1998 the amount and allocation of
the excess of purchase price over book value of net assets acquired to be as
follows:
Purchase price of net assets of CAS $26,864
Transaction costs 376
Direct acquisition costs related to facility closings
to be accrued 2,100
-------
Total estimated purchase cost $29,340
Book value of net assets purchased 578
-------
Excess of purchase cost over book value to
be allocated to goodwill $28,762
The excess of purchase price over net assets acquired is being amortized over
25 years. Pro Forma amortization expenses amounted to $.6 million and $1.2
million for the six months ended June 30, 1998 and for the year ended
December 31, 1997, respectively.
(G) Represents a $30 per share dividend payable at June 30, 1998 related to
the preferred stock. See exhibit 3.2 for additional terms of the preferred
stock.
(H) Represent the Pro Forma adjustments relating to additional interest
expense, amortization of additional deferred financing fees and the related
tax effect based on an estimated tax rate of 40%.