EXHIBIT 99.2
PRO FORMA FINANCIAL INFORMATION (UNAUDITED)
The accompanying pro forma information combines the activities of Capco Energy,
Inc. and Meteor Enterprises, Inc. for the periods described. The pro forma
combined statement of operations for the twelve months ended December 31, 2000,
includes the statement of operations of Capco Energy, Inc. for the year ended
December 31, 2000, and the operations of Meteor Enterprises, Inc. for the year
ended December 31, 2000.
The pro forma combined statement of operations is presented as if the
acquisition had occurred on January 1, 2000. The pro forma combined balance
sheet as of December 31, 2000, is presented as if the acquisition had occurred
on December 31, 2000.
These pro forma financial statements are not necessarily indicative of future
operations or the actual results that would have occurred had the acquisition
been consummated at the beginning of the year.
The pro forma combined balance sheet and statement of operations should be read
in conjunction with the historical financial statements and notes thereto of
Meteor Enterprises, Inc and of Capco Energy, Inc.
On April 27, 2001, Capco Energy, Inc. closed on its acquisition of all of the
outstanding common stock of Meteor Enterprises, Inc. The purchase price for the
common stock was $5,500,000 paid in the form of $4,697,501 cash, of which
purchaser borrowed $1,700,000 and sold $2,997,501 of marketable securities,
$302,499 of Meteor Industries, Inc. common stock, and $500,000 in a note payable
to the seller.
Pro Forma Entries
a. Entry to eliminate inter-company notes payable, receivables and
interest income and expense.
b. Entry to reflect $5,500,000 purchase price, $3,300,000 sale of
marketable securities, $2,200,000 short term borrowings and to
eliminate the equity of Meteor Enterprises, Inc. and to reduce the
fixed asset value to the purchase price which is less than book value
and adjust depreciation expense for the reduction in fixed assets.
c. Entry to reflect removal of non-recurring items and expenses for
Meteor.
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CAPCO ENERGY, INC. AND
METEOR ENTERPRISES,INC.
PRO FORMA CONSOLIDATED BALANCE SHEET
DECEMBER 31, 2000
ASSETS
(Dollars in Thousands)
PRO FORMA PRO FORMA
CAPCO METEOR ENTRIES CONSOLIDATED
---------- ---------- ---------- ------------
CURRENT ASSETS
Cash $ 414 $ 264 $ - $ 678
Marketable securities 13,005 - (3,300)(b) 9,705
Restricted cash - 2,448 - 2,448
Accounts receivable-trade 308 14,759 - 15,067
Accounts receivable, related party 54 1,189 (136)(a) 1,107
Income tax receivable - 686 - 686
Notes receivable - 38 - 38
Notes receivable, related party - 2,667 (1,550)(a) 1,117
Inventory, net - 3,921 - 3,921
Deferred tax asset 2,467 324 - 2,791
Other current assets - 867 - 867
---------- ---------- ---------- -----------
Total current assets 16,248 27,163 (4,986) 38,425
---------- ---------- ---------- -----------
PROPERTY, PLANT AND EQUIPMENT, NET 3,740 16,437 (3,610)(b) 16,567
---------- ---------- ---------- -----------
OTHER NONCURRENT ASSETS
Notes receivable - 115 - 115
Investments in closely held businesses 1,998 1,629 - 3,627
Intangibles, net - 1,230 - 1,230
Other assets 6 267 - 273
---------- ---------- ---------- ------------
Total other noncurrent assets 2,004 3,241 - 5,245
---------- ---------- ---------- -----------
TOTAL ASSETS $ 21,992 $ 46,841 $ (8,596) $ 60,237
========== ========== ========== ===========
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CAPCO ENERGY, INC. AND
METEOR ENTERPRISES,INC.
PRO FORMA CONSOLIDATED BALANCE SHEET, continued
DECEMBER 31, 2000
LIABILITIES AND SHAREHOLDERS' EQUITY
(Dollars in Thousands)
PRO FORMA PRO FORMA
CAPCO METEOR ENTRIES CONSOLIDATED
---------- ---------- ---------- ------------
CURRENT LIABILITIES
Accounts payable, trade $ 683 $ 11,039 $ $ 11,722
Accounts payable, related party 40 40 - 80
Book overdraft - 1,794 - 1,794
Current portion, long-term debt 5,239 3,798 2,200 (b) 9,687
(1,550)(a)
Accrued expenses 829 1,440 (136)(a) 2,133
Taxes payable 2,467 574 - 3,041
Revolving credit facility 8,570 - 8,570
---------- ---------- ---------- ----------
Total current liabilities 9,258 27,255 514 37,027
---------- ---------- ---------- ----------
NONCURRENT LIABILITIES
Deferred tax liability - 2,556 - 2.556
Long-term debt 56 7,202 - 7,258
Accrued expenses - 468 - 468
---------- ---------- ---------- ----------
Total noncurrent liabilities 56 10,226 - 10,282
MINORITY INTEREST IN SUBSIDIARIES 712 250 - 962
---------- ---------- ---------- ----------
Total liabilities 10,026 37,731 514 48,271
---------- ---------- ---------- ----------
SHAREHOLDERS' EQUITY
Preferred stock 292 365 (365)(b) 292
Common stock, $.001 par value 20 4 (4)(b) 20
Paid-in capital 1,336 5,695 (5,695)(b) 1,336
Cumulative Foreign Currency
Translation Adjustment 1 - - 1
Cumulative unrecognized gains 8,519 - - 8,519
Treasury stock - (489) 489 (b) -
Retained earnings 1,798 3,535 (3,535)(b) 1,798
---------- ---------- ---------- ----------
Total shareholders' equity 11,966 9,110 (9,110) 11,966
---------- ---------- ---------- ----------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $ 21,992 $ 46,841 $ (8,596) $ 60,237
========== ========== ========== ==========
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CAPCO ENERGY, INC. AND
METEOR ENTERPRISES,INC.
PRO FORMA CONSOLIDATED STATEMENT OF OPERATIONS
For the Year Ended December 31, 2000
(Dollars in Thousands, except for per share information)
PRO FORMA PRO FORMA
CAPCO METEOR ENTRIES CONSOLIDATED
---------- ---------- ---------- ------------
Net sales $ 1,386 $ 196,800 $ - $ 198,186
Cost of sales, excluding depreciation 544 174,497 - 175,041
---------- ---------- ---------- ----------
Gross profit 842 22,303 - 23,145
---------- ---------- ---------- ----------
Selling, general and administrative
expenses 1,523 18,971 - 20,494
Depreciation and amortization 382 2,438 (342)(b) 2,478
---------- ---------- ---------- ----------
Total operating expenses 1,905 21,409 (342) 23,972
---------- ---------- ---------- ----------
Income from operations (1,063) 894 342 173
---------- ---------- ---------- ----------
Other income and (expenses)
Interest income 46 376 (115)(a) 307
Interest expense (470) (1,690) 115 (a) (2,045)
Other - (803) 562 (c) (241)
Gain on sale of assets 5,719 1 - 5,720
---------- ---------- ---------- ----------
Total other income and (expenses) 5,295 (2,116) 562 3,741
---------- ---------- ---------- ----------
Income (loss) before income taxes and
minority interest 4,232 (1,222) 904 3,914
Income tax (benefit) expense - (641) - (641)
Minority interest 591 368 - 959
Equity loss in investments (1,436) - - (1,436)
---------- ---------- ---------- ----------
Net income (loss) $ 2,205 $ (949) $ 904 $ 2,160
========== ========== ========== ==========
Income per share
Basic and diluted $ 0.12 $ 0.12
========== ==========
Weighted average shares outstanding
Basic and diluted 18,429,208 18,429,208
========== ==========
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