Western Power & Equipment Corp.
Unaudited Pro-forma Financial Statements
($000, except per share amounts)
STATEMENT OF OPERATIONS
6-Months
Pro-forma After
WPEC CDK Pro-forma Completion
01/31/03 12/31/02 Adjustments of Merger
------- ------- ------- -------
Total Revenues 48,757 -- 48,757
Total Cost of Sales 41,866 -- 41,866
------- ------- ------- -------
Total Gross Margin 6,891 -- -- 6,891
Operating Expenses 4,664 486 5,150
------- ------- ------- -------
Operating Income 2,227 (486) -- 1,741
Interest Expense (1,796) (9) (1,805)
Other Income (Expense) 95 (61)(1) 34
------- ------- ------- -------
Total Interest/Other (1,701) (70) -- (1,771)
Income (Loss) Before Taxes 526 (556) -- (30)
Income Tax Provision 25 -- 25
------- ------- ------- -------
Net Income (Loss) 501 (556) -- (55)
======= ======= ======= =======
Weighted Average Common 4,003 36,196 26,796(2) 9,400
Shares Outstanding
Net Income (Loss) per Share $ 0.13 $ (0.02) $ (0.01)
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(1) Includes preferred stock dividend of $57
(2) Reflects reverse stock split at time of merger
Western Power & Equipment Corp.
Unaudited Pro-forma Financial Statements
($000, except per share amounts)
STATEMENT OF OPERATIONS
6-Months
Pro-forma After
WPEC CDK Pro-forma Completion
01/31/02 12/31/01 Adjustments of Merger
------- ------- ------- -------
Total Revenues 54,729 171 54,900
Total Cost of Sales 47,762 140 47,902
------- ------- ------- -------
Total Gross Margin 6,967 31 -- 6,998
Operating Expenses 5,121 579 5,700
------- ------- ------- -------
Operating Income 1,846 (548) -- 1,298
Interest Expense (2,284) (6) (2,290)
Other Income (Expense) 54 (29)(1) 25
------- ------- ------- -------
Total Interest/Other (2,230) (35) -- (2,265)
Income (Loss) Before Taxes (384) (583) -- (967)
Income Tax Provision 24 -- 24
------- ------- ------- -------
Net Income (Loss) (408) (583) -- (991)
======= ======= ======= =======
Weighted Average Common 3,403 31,718 22,318(2) 9,400
Shares Outstanding
Net Income (Loss) per Share $ (0.12) $ (0.02) $ (0.11)
======= ======= =======
(1) Includes preferred stock dividend of $53
(2) Reflects reverse stock split at time of merger
Western Power & Equipment Corp.
Unaudited Pro-forma Financial Statements
($000, except per share amounts)
BALANCE SHEET
Pro-forma After
WPEC CDK Pro-forma Completion
01/31/03 12/31/02 Adjustments of Merger
------- ------- ------- -------
Current Assets:
Cash 5 761 2,000 2,766
Accounts Receivable (Net) 6,974 6,974
Inventory (Net) 23,126 147 23,273
Prepaid Expenses 129 71 200
Other -- 100 100
------- ------- ------- -------
Total Current Assets 30,234 1,079 2,000 33,313
Long-term Assets:
Property, Plant, & Equipment (Net) 3,138 107 3,245
Rental Equipment (Net) 15,052 -- 15,052
Note Receivable -- 559 559
Other 152 12 164
------- ------- -------
Total Long-term Assets 18,342 678 -- 19,020
------- ------- ------- -------
Total Assets 48,576 1,757 2,000 52,333
======= ======= ======= =======
Western Power & Equipment Corp.
Unaudited Pro-forma Financial Statements
($000, except per share amounts)
BALANCE SHEET
Pro-forma After
WPEC CDK Pro-forma Completion
01/31/03 12/31/02 Adjustments of Merger
------- ------- ------- -------
Current Liabilities:
Accounts Payable and Accrued Expenses 8,828 252 9,080
Short-term Borrowings 34,178 29 34,207
Term Debt 140 140
Accrued Payroll and Vacation 506 506
Capital Lease Obligation 6 6
Borrowing under Floor Plan Financing 6,625 6,625
Other -- 38 38
------- ------- ------- -------
Total Current Liabilities 50,283 319 -- 50,602
Long-term Liablilities:
Capital Lease Obligation 928 -- 928
Other -- 256 256
------- ------- ------- -------
Total Long-term Liabilities 928 256 -- 1,184
Total Liabilities 51,211 575 -- 51,786
Stockholders' Equity:
Common Stock 4 3 (3)(1) 4
Preferred Stock -- 1,480 -- 1,480
Additional Paid-in Capital 16,025 23,070 (22,196)(1)(2) 16,899
Treasury Stock (844) (16) 844(2) (16)
Accumulated Deficit (17,820) (23,355) 23,355(2) (17,820)
------- ------- ------- -------
Total Stockholders' Equity (2,635) 1,182 2,000 547
------- ------- ------- -------
Total Liabilities & Equity 48,576 1,757 2,000 52,333
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(1) Reflects account receivable for certain asset sales at time of closing
merger transaction
(2) Consolidation elimination entry