EX-99.2 4 dex992.htm UNAUDITED PRO FORMA COMBINED CONSOLIDATED FINANCIAL STATEMENT OF OPERATIONS Unaudited Pro Forma Combined Consolidated Financial Statement of Operations

Exhibit 99.2

UNAUDITED PRO FORMA COMBINED CONSOLIDATED FINANCIAL STATEMENT

The unaudited pro forma combined consolidated statement of operations for the fiscal year ended December 30, 2007 give effect to the acquisition of TCFS Holdings, Inc. (the “TCFS Acquisition”) as if it had occurred on January 1, 2007.

The historical consolidated statement of operations for Susser for the fiscal year ended December 30, 2007 was derived from the Company’s audited consolidated financial information included in its Annual Report on Form 10-K for the fiscal year ended December 30, 2007 filed with the SEC on March 14, 2008. The historical consolidated statement of operations for TCFS Holdings, Inc. (“Town & Country”) for the fiscal year ended November 3, 2007 was derived from Town & Country’s consolidated financial statements filed as a separate exhibit to this Current Report on Form 8-K.

Town & Country’s fiscal year ends on the Saturday closest to October 31, which resulted in a 2007 fiscal year end of November 3, 2007. The accompanying notes to the unaudited pro forma combined consolidated statement of operations provide further details of the derivation of the historical periods presented.

The unaudited pro forma combined consolidated financial statement of operations presented below is based on the assumptions and adjustments described in the accompanying notes. Such unaudited pro forma combined consolidated financial statement is presented for illustrative purposes only and is not necessarily indicative of what our financial position or results of operations would have been had the TCFS Acquisition been consummated on the date indicated, nor is it necessarily indicative of what our financial position or results of operations will be in future periods. The unaudited pro forma combined consolidated financial statements, and the accompanying notes thereto, should be read in conjunction with the historical audited financial statements, and accompanying notes thereto, all of which are filed as a separate exhibit with this Current Report on Form 8-K. The allocation of the purchase price to acquired assets and liabilities in the unaudited pro forma combined consolidated financial statements are based on initial valuation assessments, some of which were obtained from studies performed by outside valuation specialists. Such allocations will be finalized within one year of the acquisition date based on additional valuation studies to be performed by management with the services of outside valuation specialists. Accordingly, the purchase price allocation adjustments and related impacts on the unaudited pro forma combined consolidated financial statements are preliminary and are subject to revision, which may be material.


SUSSER HOLDINGS CORPORATION

UNAUDITED PRO FORMA COMBINED CONSOLIDATED STATEMENT OF OPERATIONS

For the Year Ended December 30, 2007

(Dollars in thousands)

 

     Historical for the Twelve Months Ended     Roll forward
Adjustments (1)
    Pro Forma
Acquisition
Adjustments
    Pro Forma
Combined
 
     December 30, 2007     November 3, 2007        
     Susser
Holdings
    TCFS
Holdings
       

Revenues:

          

Merchandise sales

   $ 444, 218     $ 237,009     $ (26,800 )   $ —       $ 654,427  

Motor fuel sales

     2,247,220       636,587       (65,428 )     —         2,818,379  

Other income

     25,924       8,437       (987 )     —         33,374  
                                        

Total revenues

     2,717,362       882,033       (93,215 )     —         3,506,180  

Cost of sales:

          

Merchandise

     299,652       157,609       (17,684 )     (263 )(2)     439,314  

Motor fuel

     2,155,435       591,180       (60,339 )     (2,335 )(2)     2,683,941  

Other

     1,132       —         —         —         1,132  
                                        

Total cost of sales

     2,456,219       748,789       (78,023 )     (2,598 )     3,124,387  

Gross profit

     261,143       133,244       (15,192 )     2,598       381,793  

Operating expenses:

          

Personnel

     82,459       37,205       (4,626 )     —         115,038  

General and administrative

     27,944       9,606       (986 )     —         36,564  

Operating

     68,935       37,102       (4,240 )     —         101,797  

Rent

     25,822       1,455       (190 )     3,719 (3)     30,806  

Royalties

     66       —         —         —         66  

Loss (gain) on disposal of assets and impairment charge

     190       (40 )     —         —         150  

Depreciation, amortization, and accretion

     29,469       12,507       (1,457 )     692 (4)     41,211  
                                        

Total operating expenses

     234,885       97,835       (11,499 )     4,411       325,632  

Income from operations

     26,258       35,409       (3,693 )     (1,813 )     56,161  

Other income (expense):

          

Interest expense, net

     (16,152 )     (13,486 )     1,727       (13,488 )(5)     (41,399 )

Other miscellaneous

     435       —         —         —         435  
                                        

Total other income (expense)

     (15,717 )     (13,486 )     1,727       (13,488 )     (40,964 )

Minority interest in income of consolidated subsidiaries

     (42 )     —         —         —         (42 )
                                        

Net income before income taxes

     10,499       21,923       (1,966 )     (15,301 )     15,155  

Income tax expense

     5,753       (8,515 )     749       (4,678 )(6)     (6,691 )
                                        

Net income (loss)

   $ 16,252     $ 13,408     $ (1,217 )   $ (19,979 )   $ 8,464  
                                        

 

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NOTES TO UNAUDITED PRO FORMA COMBINED CONSOLIDATED STATEMENT OF OPERATIONS

For the Year Ended December 30, 2007

 

(1) Adjustment to eliminate results for one-half of Town & Country’s first fiscal quarter (three months ended February 3, 2007) because approximately one half of the Company’s fourth quarter includes Town & Country’s results (November 13, 2007 through December 30, 2007).
(2) Elimination of the impact of the write down of inventory to the LIFO basis of $2.6 million.
(3) Reflecting the incremental rent expense related to the $50.0 million sale/leaseback transaction closed as part of the acquisition as if it had occurred at the beginning of the fiscal year of $3.7 million.
(4) Reflecting the increase in depreciation expense of $2.9 million from the valuation of fixed assets to fair market value and the elimination of depreciation expense of $2.2 million for assets sold in the sale leaseback as if the acquisition had occurred at the beginning of the fiscal year for a net $0.7 million increase.
(5) Reflecting the increase in interest expense of $25.2 million related to the issuance of $105.0 million in bank debt and $150.0 million of senior notes, including the amortization of the related prepaid loan costs. Also eliminates $11.8 million of interest expense related to the payoff of the existing Town & Country debt of $134.1 million.
(6) Recording of an income tax provision at an effective rate of 36% plus margin tax of 0.5% of gross profit.

 

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