EXHIBIT 99.2
CYTATION CORP
Cytation Corporation
Balance Sheet
As of September 30, 2005
DeerValley Cytation Pro Forma Pro Forma
Homebuilders, Inc. Corp. Adjustments Consolidated
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
CURRENT ASSETS:
Cash $ 2,142,891 $ 6,000 $ - $ 2,148,891
Certificate of Deposit 150,000 - - 150,000
Accounts Receivable 2,359,341 - - 2,359,341
Other Receivable 4,005 4,005
Inventories 1,235,497 1,235,497
Prepaid expenses and other current assets 52,904 - - 52,904
Total Current Assets 5,944,638 6,000 - 5,950,638
PROPERTY AND EQUIPMENT, Net 1,606,629 - - 1,606,629
OTHER ASSETS:
Security deposit - 1,800 - 1,800
Goodwill - - 3,554,808 (4) 3,554,808
Total Other Assets - 1,800 3,554,808 3,556,608
TOTAL ASSETS $ 7,551,267 $ 7,800 $ 3,554,808 $ 11,113,875
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LIABILITIES AND STOCKHOLDERS'EQUITY(DEFICIT)
CURRENT LIABILITIES:
Current Maturities of Long-Term Debt $ 14,690 $ - $ - $ 14,690
Accounts payable 1,654,605 53,916 325,480 (3) 2,034,001
Accounts Payable under Dealer Incentive Programs 297,846 - 297,846
Estimated Warranties 690,000 - 690,000
Compensation and Related Accruals 481,553 - 481,553
Accrued Stockholder Distributions 375,000 - 375,000
Income Tax Payable 707,252 (6)
Other Accrued Expenses 170,963 129,382 - 300,345
Total Current Liabilities 3,684,657 183,298 1,032,732 4,900,687
LONG TERM LIABILITIES:
Long-Term Debt, Net of Current Maturities 1,421,418 - 1,500,000 (1) 2,921,418
STOCKHOLDERS' EQUITY(DEFICIT):
Series A Preferred stock, $0.01 par value, 750,000
shares authorized, 532,750 shares issued and outstanding 5,328 (2) 5,328
Series B Preferred stock, $0.01 par value, 49,451
shares authorized, 49,451 shares issued and outstanding 495 495
Series C Preferred stock, $0.01 par value, 26,750
shares authorized, 26,750 shares issued and outstanding 268 268
Common stock, $0.001 par value, 2,000,000
shares authorized, 952,622 shares issued and outstanding 1,000 953 (1,000) 953
Additional paid-in capital 1,099,000 32,649,133 3,069,430 (2),(3) 36,817,563
Treasury Stock at Cost (66,000) 66,000 -
Retained Earnings and Accumulated deficit 1,411,192 (32,825,584) (2,118,444)(5) (33,532,836)
TOTAL STOCKHOLDERS' EQUITY (DEFICIT) 2,445,192 (175,498) 1,022,076 3,291,770
TOTAL LIABILITIES AND STOCKHOLDERS'
EQUITY (DEFICIT) $ 7,551,267 $ 7,800 $ 3,554,808 $ 11,113,875
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<FN>
(1) Debt issued in connection with Acquisition
(2) Series A Preferred Stock issued in connection with Acquisition Reduced by DVHB APIC and Transaction Costs
(3) Transaction costs outstanding in connection with Acquisition
(4) Goodwill booked in connection with Acquisition
(5) Pro forma income tax payable
CYTATION CORP
Cytation Corporation
Pro Forma Consolidated Statements of Operations
For The Nine Months Ended September 30, 2005
(Unaudited)
DeerValley Cytation Pro Forma Pro Forma
Homebuilders, Inc. Corp. Adjustments Consolidated
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
NET REVENUE $ 24,023,661 $ 49,114 $ - $ 24,072,775
COST OF REVENUE 19,740,677 1,738 - 19,742,415
GROSS PROFIT 4,282,984 47,376 - 4,330,360
OPERATING EXPENSES:
Depreciation 87,327 1,037 - 88,364
Selling, general and administrative 2,020,958 223,952 - 2,244,910
TOTAL OPERATING EXPENSES 2,108,285 224,989 - 2,333,274
OPERATING INCOME/(LOSS) 2,174,699 (177,613) - 1,997,086
OTHER INCOME (EXPENSES)
Gain on sale and distribution of investment - 31,902 - 31,902
Loss on sale of property and equipment - (4,270) - (4,270)
Loss on termination of ARE agreement - (5,000) - (5,000)
Interest income (expenses), net (56,864) (4,659) - (61,523)
Other Income 6,008 - - 6,008
TOTAL OTHER INCOME (50,856) 17,973 - (32,883)
INCOME/(LOSS) BEFORE INCOME TAXES 2,123,843 (159,640) - 1,964,203
INCOME TAX EXPENSE - - 707,252 707,252
NET LOSS $ 2,123,843 $ (159,640) $ (707,252) $ 1,256,951
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Net (Loss) Income Per Share (Basic) $ 2,124 $ (0.18) $ 707.25 $ 1.40
Net (Loss) Income Per Share (Fully Diluted) $ 2,124 $ (0.18) $ (0.05) $ 0.08
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Weighted Average Common Shares Outstanding 1,000 898,144 (1,000) 898,144
Weighted Average Common and Common
Equivalent Shares Outstanding 1,000 898,144 14,817,956 15,717,100
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CYTATION CORP
Cytation Corporation
Pro Forma Consolidated Statements of Operations
For The Twelve Months Ended December 31, 2004
(Unaudited)
DeerValley Cytation Pro Forma Pro Forma
Homebuilders, Inc. Corp. Adjustments Consolidated
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
NET REVENUE $15,394,215 $ 240,368 $ - $ 15,634,583
COST OF REVENUE 12,769,267 746,896 - 13,516,163
GROSS PROFIT 2,624,948 (506,528) - 2,118,420
OPERATING EXPENSES:
Depreciation 84,211 3,857 - 88,068
Selling, general and administrative 1,475,122 367,007 - 1,842,129
TOTAL OPERATING EXPENSES 1,559,333 370,864 - 1,930,197
OPERATING INCOME/(LOSS) 1,065,615 (877,392) - 188,223
OTHER INCOME (EXPENSES)
Gain on sales of Marketable Securities - 187,976 - 187,976
Interest income (expenses), net (55,109) (5,298) - (60,407)
TOTAL OTHER INCOME (55,109) 182,678 - 127,569
INCOME/(LOSS) BEFORE INCOME TAXES 1,010,506 (694,714) - 315,792
INCOME TAX EXPENSE - 1,975 99,190 101,165
NET LOSS $ 1,010,506 $ (696,689) $ (99,190) $ 214,627
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Net (Loss) Income Per Share (Basic) $ 1,011 $ (1.74) $ 99.19 $ 0.54
Net (Loss) Income Per Share (Fully Diluted) $ 1,011 $ (1.74) $ 0.01
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Weighted Average Common Shares Outstanding 1,000 399,915 (1,000) 399,915
Weighted Average Common and Common
Equivalent Shares Outstanding 1,000 399,915 15,316,185 15,717,100
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