EXHIBIT 99.3
Mendocino Brewing Company, Inc. and United Breweries
International (UK) Limited Pro Forma Balance Sheet and Income
Statement for the years ended December 31, 1999 and 2000
The Pro Forma Condensed Consolidated Financial Statements of Registrant as of
December 31, 2000 and 1999 were prepared using U.S. Generally Accepted
Accounting Principles (U.S. GAAP) and reflects the financial position of
Registrant after giving effect to the acquisition of the stock of United
Breweries International, Ltd. discussed above and assumes the acquisition took
place on January 1, 1999. Such pro forma financial statements also reflect the
sale of 5,500,000 shares of common stock referred above for the purchase of the
common stock of United Breweries International, Ltd. at a purchase price of
$.8125 per share (the last reported sale price of common stock on November 2,
2000, the day the agreement was finalized.) The purchase is being recorded as if
it were a pooling transaction due to the related party nature of the
transaction.
The unaudited pro forma condensed consolidated financial statements have been
prepared by Registrant based upon assumptions deemed proper by it. The unaudited
pro forma condensed consolidated financial statements presented herein are shown
for illustrative purposes only and are not necessarily indicative of the future
financial position or future results of operations of Registrant, or of the
financial position or results of operations of Registrant that would have
actually occurred had the transaction been in effect as of the date or for the
periods presented. In addition, it should be noted that Registrant's financial
statements will reflect the purchase only from the closing date, should it
occur.
The unaudited pro forma condensed consolidated financial statements should be
read in conjunction with the historical financial statements and related notes
of Registrant.
7
Pro forma Adjustment
----------------------------------
Mendocino United Breweries Pro forma
Brewing Co, Inc. International, Ltd. Consolidated
ASSETS 12/31/00 12/31/2000 (a) Adjustments 12/31/00
-------------- ------------------- ----------- --------------
CURRENT ASSETS
Cash $ - $ 208,300 $ - $ $ 208,300
Accounts receivable 1,173,000 4,242,900 - 5,415,900
Inventories 1,203,300 103,300 - 1,306,600
Prepaid expenses 116,600 - 116,600
Deferred income taxes 48,100 - - 48,100
-------------- --------------- ----------- -------------
Total current assets 2,541,000 4,554,500 - 7,095,500
-------------- --------------- ----------- -------------
PROPERTY AND EQUIPMENT 13,997,400 864,900 - 14,862,300
-------------- --------------- ----------- -------------
OTHER ASSETS
Intangibles, net of amortization 53,900 33,500 - 87,400
Other assets 410,500 - (340,700)(b) 69,800
Deferred taxes 2,768,000 - - 2,768,000
-------------- --------------- ----------- -------------
3,232,400 33,500 (340,700) 2,925,000
-------------- --------------- ----------- -------------
Total assets $ 19,770,800 $ 5,452,900 $(340,700) $ 24,883,000
============== =============== =========== =============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Disbursements in excess of deposits $ $ 1,700 $ - $ - $ 1,700
Line of credit - 1,486,300 1,486,300
Accounts payable 1,942,200 2,134,300 4,076,500
Accrued liabilities 358,100 666,100 - 1,024,200
Accrued income taxes 1,000 202,600 203,600
Current maturities of debt and leases 759,900 - - 759,900
-------------- --------------- ----------- -------------
Total current liabilities 3,062,900 4,489,300 - 7,552,200
LONG-TERM DEBT AND CAPITAL LEASES,
less current maturities 5,655,100 - - 5,655,100
LINE OF CREDIT 1,281,600 - - 1,281,600
-------------- --------------- ----------- -------------
Total liabilities 9,999,600 4,489,300 - 14,488,900
-------------- --------------- ----------- -------------
STOCKHOLDERS' EQUITY
Preferred stock 227,600 - - 227,600
Common stock 13,875,900 149,600 - 14,025,500
Accumulated deficit (4,332,300) 814,000 (340,700) (3,859,000)
-------------- --------------- ----------- -------------
Total stockholders' equity 9,771,200 963,600 (340,700) 10,394,100
-------------- --------------- ----------- -------------
Total liabilities and stockholders' equity $ 19,770,800 $ 5,452,900 $(340,700) $ 24,883,000
============== =============== =========== =============
(a) To include the assets and liabilities of United Breweries International,
Ltd., as of December 31, 2000.
(b) To expense capitalized acquisition costs.
8
Pro forma Adjustment
----------------------------------
Mendocino United Breweries Pro forma
Brewing Co, Inc. International, Ltd. Consolidated
12/31/00 12/31/2000 (a) Adjustments 12/31/00
---------------- ------------------- ------------- --------------
NET SALES $ 9,255,900 $ 12,643,600 $ - $ 21,899,500
COST OF GOODS SOLD 5,823,300 8,220,000 - 14,043,300
------------- --------------- ------------- ------------
GROSS PROFIT 3,432,600 4,423,600 - 7,856,200
OPERATING EXPENSES
Selling and marketing 2,041,900 2,806,400 - 4,848,300
General and administrative 1,441,500 903,500 2,345,000
------------- --------------- ------------- ------------
3,483,400 3,709,900 - 7,193,300
------------- --------------- ------------- ------------
INCOME (LOSS) FROM OPERATIONS (50,800) 713,700 - 662,900
OTHER INCOME (EXPENSE)
Interest expense (895,800) (82,000) - (977,800)
Other income (expense) 90,000 (17,600) (340,700)(b) (268,300)
------------- --------------- ------------- ------------
(805,800) (99,600) (340,700) (1,246,100)
------------- --------------- ------------- ------------
INCOME (LOSS) BEFORE INCOME TAXES (856,600) 614,100 (340,700) (1,246,100)
PROVISION (BENEFIT) FROM INCOME TAXES (329,400) 202,200 - (127,200)
------------- --------------- ------------- ------------
NET INCOME (LOSS) $ (527,200) $ 411,900 $ (340,700) $ (456,000)
============= =============== ============= ============
BASIC INCOME (LOSS) PER COMMON SHARE $ (0.10) $ (0.04)
============= ============
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING 5,538,514 5,500,000 11,038,514
============= ============= ============
(a) To include the profits and losses of United Breweries International, Ltd.
(b) To expense capitalized acquisition costs.
9
Pro forma Adjustment
----------------------------------
Mendocino United Breweries Pro forma
Brewing Co, Inc. International, Ltd. Consolidated
ASSETS 12/31/99 12/31/1999 (a) Adjustments 12/31/99
---------------- ------------------- ----------- --------------
CURRENT ASSETS
Cash $ - $ 54,700 $ - $ 54,700
Accounts receivable 1,040,300 4,396,400 - 5,436,700
Inventories 1,168,700 101,900 - 1,270,600
Prepaid expenses 57,200 - 57,200
Deferred income taxes 43,100 - - 43,100
------------- ------------- ---------- ------------
Total current assets 2,309,300 4,553,000 - 6,862,300
------------- ------------- ---------- ------------
PROPERTY AND EQUIPMENT 14,727,200 957,900 - 15,685,100
------------- ------------- ---------- ------------
OTHER ASSETS
Intangibles, net of amortization 61,000 41,300 - 102,300
Other assets 92,100 92,100
Deferred taxes 2,440,300 - - 2,440,300
------------- ------------- ---------- ------------
2,593,400 41,300 - 2,634,700
------------- ------------- ---------- ------------
Total assets $ 19,629,900 $ 5,552,200 $ - $ 25,182,100
============= ============= ========== ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Disbursements in excess of deposits $ 9,600 $ - $ - $ 9,600
Line of credit 1,159,800 2,009,000 3,168,800
Accounts payable 1,708,700 2,284,300 3,993,000
Accrued liabilities 334,900 545,700 - 880,600
Accrued income taxes - 111,600 111,600
Current maturities of debt and leases 596,700 - - 596,700
------------- ------------- ---------- ------------
Total current liabilities 3,809,700 4,950,600 - 8,760,300
LONG-TERM DEBT AND CAPITAL LEASES,
less current maturities 5,562,800 - - 5,562,800
------------- ------------- ---------- ------------
Total liabilities 9,372,500 4,950,600 - 14,323,100
------------- ------------- ---------- ------------
STOCKHOLDERS' EQUITY
Preferred stock 227,600 - - 227,600
Common stock 13,834,900 161,500 - 13,996,400
Accumulated deficit (3,805,100) 440,100 - (3,365,000)
------------- ------------- ---------- ------------
Total stockholders' equity 10,257,400 601,600 - 10,859,000
------------- -------------- ---------- ------------
Total liabilities and stockholders' equity $ 19,629,900 $ 5,552,200 $ - $ 25,182,100
============= ============= ========== ============
(a) To include the assets and liabilities of United Breweries International,
Ltd., as of December 31, 1999.
10
Pro forma Adjustment
----------------------------------
Mendocino United Breweries Pro forma
Brewing Co, Inc. International, Ltd. Consolidated
12/31/99 12/31/1999 (a) Adjustments 12/31/99
-------------- ------------------- ----------- --------------
NET SALES $ 8,698,600 $ 11,886,600 $ - $ 20,585,200
COST OF GOODS SOLD 5,767,900 7,783,600 - 13,551,500
------------ -------------- ----------- --------------
GROSS PROFIT 2,930,700 4,103,000 - 7,033,700
OPERATING EXPENSES
Selling and marketing 2,108,600 2,513,900 - 4,622,500
General and administrative 1,652,200 1,054,500 2,706,700
------------ -------------- ----------- --------------
3,760,800 3,568,400 - 7,329,200
------------ -------------- ----------- --------------
INCOME (LOSS) FROM OPERATIONS (830,100) 534,600 - (295,500)
OTHER INCOME (EXPENSE)
Interest expense (846,800) (116,100) - (962,900)
Other income (expense) (358,900) (202,700) - (561,600)
------------ -------------- ----------- --------------
(1,205,700) (318,800) - (1,524,500)
------------ -------------- ----------- --------------
INCOME (LOSS) BEFORE INCOME TAXES (2,035,800) 215,800 - 1,820,000
PROVISION (BENEFIT) FROM INCOME TAXES (729,500) 102,000 - (627,500)
------------ -------------- ----------- --------------
NET INCOME (LOSS) BEFORE DISCONTINUED
OPERATIONS (1,306,300) 113,800 - (1,192,500)
LOSS FROM OPERATIONS OF SOYCO, LTD. - (242,500) 242,500 (b) -
GAIN ON THE DISPOSAL OF SOYCO, LTD. - 3,056,300 (3,056,300)(b) -
------------ -------------- ----------- --------------
NET INCOME (LOSS) $ (1,306,300) $ 2,927,600 $(2,813,800) $ (1,192,500)
============ ============== =========== ==============
BASIC INCOME (LOSS) PER COMMON SHARE $ (0.27) $ (0.12)
============ ==============
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING 4,838,151 5,500,000 (c) 10,338,151
============ =========== ==============
(a) To include the profits and losses of United Breweries International, Ltd.
(b) To carve out the operations of Soyco, Ltd., a subsidiary that will not be
purchased as part of the the proposed transaction. Soyco, Ltd. was sold in
December 1999.
(c) To reflect the shares issued for the purchase of the stock of United
Breweries International, Ltd.
11