EX-99.2 4 w28047exv99w2.htm UNAUDITED INTERIM CONSOLIDATED BALANCE SHEET OF PREMIER PNEUMATICS, INC. exv99w2
 

PREMIER PNEUMATICS, INC. AND SUBSIDIARY
CONSOLIDATED BALANCE SHEET
SEPTEMBER 30, 2006
(UNAUDITED)
(IN THOUSANDS)
         
CURRENT ASSETS
        
 
        
CASH & CASH EQUIVALENTS
   $ 2,436  
ACCOUNTS RECEIVABLE, NET
     2,354  
INVENTORIES, NET
     1,287  
NOTE RECEIVABLE FROM STOCKHOLDER
     519  
PREPAID EXPENSES
     53  
 
        
TOTAL CURRENT ASSETS
     6,649  
 
        
PROPERTY, PLANT AND EQUIPMENT, NET
     3,144  
 
        
 
        
TOTAL ASSETS
   $ 9,793  
 
        
 
        
LIABILITIES AND STOCKHOLDER’S EQUITY
        
 
        
ACCOUNTS PAYABLE
   $ 848  
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
     3,776  
 
        
TOTAL CURRENT LIABILITIES
     4,624  
 
        
STOCKHOLDER’S EQUITY
        
COMMON STOCK
     300  
ADDITIONAL PAID IN CAPITAL
     159  
RETAINED EARNINGS
     4,710  
 
        
TOTAL STOCKHOLDER’S EQUITY
     5,169  
 
        
 
        
TOTAL LIABILITIES AND STOCKHOLDER’S EQUITY
   $ 9,793  
 
        
SEE NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS.

 

 

PREMIER PNEUMATICS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF INCOME
NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
(UNAUDITED)
(IN THOUSANDS)
                 
    2006     2005  
REVENUES
   $ 16,380     $ 12,789  
 
COST OF REVENUES
     10,465       8,400  
 
            
 
GROSS PROFIT
     5,915       4,389  
 
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES
     4,185       3,180  
 
            
 
OPERATING INCOME
     1,730       1,209  
 
INTEREST (INCOME) EXPENSE, NET
     (49 )     8  
 
            
 
NET INCOME
   $ 1,779     $ 1,201  
 
            
SEE NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS.

 

 

PREMIER PNEUMATICS, INC. AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF CASH FLOWS
NINE MONTHS ENDED SEPTEMBER 30, 2006 AND 2005
(UNAUDITED)
(IN THOUSANDS)
                 
    2006     2005  
OPERATING ACTIVITIES:
                
NET INCOME
   $ 1,779     $ 1,201  
ADJUSTMENTS TO RECONCILE NET INCOME TO NET CASH PROVIDED BY (USED IN ) OPERATING ACTIVITIES:
                
DEPRECATION AND AMORTIZATION
     319       323  
CHANGES IN ASSETS AND LIABILITIES:
                
ACCOUNTS RECEIVABLE, NET
     269       (5 )
INVENTORIES, NET
     (275 )     (726 )
PREPAID EXPENSES
     (16 )     (9 )
ACCOUNTS PAYABLE
     81       291  
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
     1,160       1,330  
 
            
NET CASH PROVIDED BY OPERATING ACTIVITIES
     3,317       2,405  
INVESTING ACTIVITIES:
                
CAPITAL EXPENDITURES
     (145 )     (132 )
COLLECTION OF NOTE RECEIVABLE FROM STOCKHOLDER
     272       250  
 
            
NET CASH PROVIDED BY INVESTING ACTIVITIES
     127       118  
 
                
FINANCING ACTIVITIES:
                
PRINCIPAL PAYMENTS ON LONG-TERM DEBT
     (1,976 )     (110 )
DISTRIBUTIONS TO STOCKHOLDER
     (1,220 )     (700 )
 
            
NET CASH USED IN FINANCING ACTIVITIES
     (3,196 )     (810 )
 
                
NET INCREASE IN CASH AND CASH EQUIVALENTS
     248       1,713  
 
                
CASH AND CASH EQUIVALENTS
                
BEGINNING OF PERIOD
     2,188       2,001  
 
            
END OF PERIOD
   $ 2,436     $ 3,714  
 
            
SEE NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS.

 

 

PREMIER PNEUMATICS, INC. AND SUBSIDIARY
Notes to Unaudited Consolidated Financial Statements
September 30, 2006
(Unaudited)
1. ORGANIZATION AND BASIS OF PRESENTATION
NATURE OF BUSINESS
Premier Pneumatics, Inc. and subsidiary (“Premier”) manufacture pneumatic conveying components and design complete materials handling systems. Premier’s customers range in size from individually owned firms to many Fortune 500 companies. These companies are involved in industries such as plastics, food, chemicals and mineral processing. Sales are generally concentrated in the United States of America, although the Company does have export sales throughout the world.
BASIS OF PRESENTATION
The unaudited consolidated financial statements include the financial statements of Premier Pneumatics, Inc. and its wholly-owned subsidiary, Mariposa Group, LLC. All intercompany transactions have been eliminated.
INTERIM FINANCIAL INFORMATION
The unaudited consolidated financial statements have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission and, in management’s opinion, include all adjustments necessary for a fair presentation of results for the periods presented.
USE OF ESTIMATES
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
ACQUISITION OF PREMIER PNEUMATICS, INC. BY K-TRON INTERNATIONAL, INC.
On October 5, 2006, K-Tron International, Inc. (“K-Tron”), through its indirect, wholly-owned subsidiary Premier Pneumatics, Inc., a Delaware corporation (“Acquisition Co.”), acquired all of the outstanding capital stock (the “Premier Stock”) of Premier Pneumatics, Inc., a Kansas corporation (“Premier”), from the shareholder (“Shareholder”) of Premier. The acquisition of

 

 

the Premier Stock was made pursuant to a Stock Purchase Agreement (the “Premier Stock Purchase Agreement”) by and among Acquisition Co. and the Shareholder.
The purchase price paid to the Shareholder on October 5, 2006 for the acquisition of the Premier Stock was $27.565 million. The Shareholder expects to pay K-Tron an estimated post-closing adjustment of $111 thousand based on Premier’s net working capital on the closing date.