Exhibit 2
PRO FORMA FINANCIAL INFORMATION
The accompanying pro forma financial statements have been prepared to reflect
the effect of the proposed merger of Ranger Industries, Inc.'s ("Ranger")
subsidiary (BEI Acquisition Corporation) into Bumgarner Enterprises, Inc.
("Bumgarner") and the simultaneous completion by Bumgarner of a tender offer for
4,225,000 shares of Ranger's previously issued and outstanding common stock for
$2.00 per share. The accompanying historical financial statements are derived
from unaudited financial information of Ranger and Bumgarner as of November 1,
2000. The pro forma adjustments are based upon management's assumptions as
discussed in Note 1.
The objective of this pro forma financial information is to show what the
significant effects on the historical financial information might have been had
the merger and tender offer occurred at January 1, 2000. However, the pro forma
condensed financial statements are not necessarily indicative of the results of
operations or related effects on financial position that would have been
attained had the above-mentioned merger and tender offer actually occurred
earlier.
Ranger Industries, Inc, and
Bumgarner Enterprises, Inc.
Pro Forma Condensed Consolidated Balance Sheet
November 1, 2000
(Unaudited)
Pro Forma Pro Forma
Bumgarner Ranger Adjustments Consolidated
---------------------------- ----------------------------
Assets
Current assets:
Cash and cash equivalents:
Unrestricted $ 4,537 $ 10,186,900 (1b) $ (8,450,000) $ 1,741,437
Restricted (1b) 8,450,000 8,450,000
Other current assets -- 3,483 3,483
------------ ------------ ------------ ------------
Total current assets 4,537 10,190,383 -- 10,194,920
------------ ------------ ------------ ------------
Oil and gas properties, using successful efforts method 161,316 -- 161,316
------------ ------------ ------------ ------------
$ 165,853 $ 10,190,383 $ -- $ 10,356,236
============ ============ ============ ============
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable and accrued expenses $ 30,000 $ 163,721 (1c) $ 225,000 $ 418,721
Note payable (1b) 8,450,000 8,450,000
Due to related party 149,316 -- 149,316
------------ ------------ ------------ ------------
Total current liabilities 179,316 163,721 8,675,000 9,018,037
------------ ------------ ------------ ------------
Minority interest in joint venture 16,536 -- 16,536
------------ ------------ ------------ ------------
Stockholders' equity:
Common stock 14,720 52,786 67,506
Additional paid-in capital -- 12,664,062 12,664,062
Accumulated deficit (44,719) (2,690,186) (1c) (225,000) (2,959,905)
Treasury stock, at cost -- -- (1b) (8,450,000) (8,450,000)
------------ ------------ ------------ ------------
Total stockholders' equity (29,999) 10,026,662 (8,675,000) 1,321,663
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
$ 165,853 $ 10,190,383 $ -- $ 10,356,236
============ ============ ============ ============
See Notes to Pro Forma Condensed Consolidated Financial Statements
Ranger Industries, Inc and
Bumgarner Enterprises, Inc.
Pro Forma Condensed Consolidated Statement of Operations
For the period from January 1, 2000 through November 1, 2000
(Unaudited)
Pro Forma Pro Forma
Bumgarner Ranger Adjustments Consolidated
---------------------------- ----------------------------
------------ ------------ ------------ ------------
Revenues $ -- $ -- $ -- $ --
------------ ------------ ------------ ------------
Operating costs and expenses:
Administrative 30,000 1,790,667 1,820,667
Stock based compensation 14,719 -- 14,719
Consulting and professional fees -- 223,079 (1c) 225,000 448,079
------------ ------------ ------------ ------------
Total operating expenses 44,719 2,013,746 225,000 2,283,465
------------ ------------ ------------ ------------
Interest income -- 251,509 -- 251,509
------------ ------------ ------------ ------------
Loss before income taxes (1,762,237) (225,000) (2,031,956)
Income tax expense -- 12,030 -- 12,030
------------ ------------ ------------ ------------
------------ ------------ ------------ ------------
Net loss $ (44,719) $ (1,774,267) $ (225,000) $ (2,043,986)
============ ============ ============ ============
------------ ------------ ------------
Pro forma loss per common share $ (44.72) $ (0.34) $ (0.13)
============ ============ ============
------------ ------------ ------------
Weighted average number of shares 1,000 5,278,644 15,773,644
============ ============ ============
See Notes to Pro Forma Condensed Consolidated Financial Statements
RANGER INDUSTRIES, INC. AND BUMGARNER ENTERPRISES, INC.
NOTES TO CONDENSED CONSOLIDATED PRO FORMA
FINANCIAL STATEMENTS
NOVEMBER 1, 2000
1. Pro forma adjustments:
The pro forma adjustments reflected in the accompanying pro forma financial
statements give effect to the following:
(a) Merger of Ranger Industries, Inc.'s ("Ranger") subsidiary (BEI
Acquisition Corporation) into Bumgarner Enterprises, Inc.
("Bumgarner") in consideration of Ranger's issuance of 14,720,000
shares for 100% of Bumgarner's issued and outstanding stock. This
transaction has been accounted for as though it were a
re-capitalization of Bumgarner and a sale of shares by Bumgarner in
exchange for the net assets of Ranger.
(b) Tender offer by Bumgarner for 4,225,000 issued and outstanding shares
of Ranger common stock at $2.00 per share. It is assumed that the
tender offer will be financed by a $8,450,000 short-term bank loan
which will be secured by $8,450,000 of Ranger's cash and cash
equivalents.
(c) Accrued $250,000 of consulting and professional fees associated with
the merger and tender offer.
2. Oil and gas properties are stated in the accompanying Pro forma condensed
consolidated balance sheet based upon generally accepted accounting
principles and does not reflect the underlying fair values of such
properties.