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Exhibit 99(a)
ACLN LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
QUARTER ENDED MARCH 31, 2000
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ACLN LIMITED
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CONSOLIDATED FINANCIAL STATEMENTS
QUARTER ENDED MARCH 31, 2000
1
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ACLN LIMITED
CONTENTS
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<TABLE>
<S> <C>
CONSOLIDATED FINANCIAL STATEMENTS:
Balance sheets 3
Statements of income 4
Statements of shareholders' equity 5
Statements of cash flows 6
Notes to financial statements 7-8
</TABLE>
2
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ACLN LIMITED
CONSOLIDATED BALANCE SHEETS
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<TABLE>
<CAPTION>
March 31, 2000 December 31, 1999
(Unaudited) (Audited)
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<S> <C> <C>
ASSETS
CURRENT ASSETS:
Cash and cash equivalents $ 26,710,064 $ 13,944,855
Cash restricted as to withdrawal 53,761,630 63,630,117
Accounts receivable 23,771,537 2,400,864
Deferred expenses 71,542 261,762
Furniture and fittings 5,222 5,474
Deposits 5,428 5,702
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$104,325,423 $ 80,248,774
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LIABILITIES AND SHAREHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable and accruals $ 15,803,497 $ 884,541
Amounts due to related parties 34,527 36,272
Income taxes payable 3,422,711 3,012,615
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19,260,735 3,933,428
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COMMITMENTS
SHAREHOLDERS' EQUITY:
Ordinary shares, stated value of C(pound)0.01
each 8,832,692 shares issued and
outstanding 170,112 170,112
Paid-in capital 20,763,972 20,763,972
Retained earnings 64,065,749 55,320,409
Accumulated other comprehensive income 64,855 60,853
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TOTAL SHAREHOLDERS' EQUITY 85,064,688 76,315,346
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$104,325,423 $ 80,248,774
====================================================================================
</TABLE>
3
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ACLN LIMITED
CONSOLIDATED STATEMENTS OF INCOME
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<TABLE>
<CAPTION>
Three month period
Ended March 31,
-------------------------------------
(Unaudited)
2000 1999
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<S> <C> <C>
SALES
Sales of automobiles 20,400,000 --
Shipping revenues 8,225,292 19,713,720
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TOTAL REVENUES $ 28,625,292 $ 19,713,720
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COST OF SALES
Cost of automobiles 14,000,000 --
Cost of shipping revenues 4,420,822 14,462,668
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TOTAL COST OF SALES 18,420,822 14,462,668
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GROSS PROFIT 10,204,470 5,251,052
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 989,516 843,882
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INCOME FROM OPERATIONS 9,214,954 4,407,170
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INCOME BEFORE INCOME TAXES 9,214,954 4,407,170
INCOME TAXES 469,614 207,905
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NET INCOME 8,745,340 4,199,265
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OTHER COMPREHENSIVE INCOME (LOSS):
FOREIGN CURRENCY TRANSLATION ADJUSTMENT 4,002 (43,759)
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COMPREHENSIVE INCOME $ 8,749,342 4,155,506
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NET INCOME PER SHARE - BASIC $ 0.99 $ 0.51
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NET INCOME PER SHARE - DILUTED $ 0.97 $ 0.51
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WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC 8,832,692 8,200,000
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WEIGHTED AVERAGE SHARES OUTSTANDING - DILUTED 9,051,465 8,238,300
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</TABLE>
4
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ACLN LIMITED
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
(UNAUDITED)
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<TABLE>
<CAPTION>
Capital Stock Paid-in Retained Cumulative Total
Capital Earnings Translation
Adjustment
Number Amount
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<S> <C> <C> <C> <C> <C> <C>
Balance December 31, 1999 8,832,692 $ 170,112 $20,763,972 $55,320,409 $ 60,853 $76,315,346
Net income -- -- 8,745,340 -- 8,745,340
Cumulative translation adjustment -- -- -- 4,002 4,002
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Balance March 31, 2000 8,832,692 $ 170,112 $20,763,972 $64,065,749 $ 64,855 $85,064,688
====================================================================================================================
</TABLE>
5
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ACLN LIMITED
CONSOLIDATED STATEMENTS OF CASH FLOWS
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<TABLE>
<CAPTION>
Three period
Ended March 31,
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(Unaudited)
2000 1999
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<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income $ 8,745,340 $ 4,199,265
Adjustments to reconcile net income to net cash
provided by operating activities
Depreciation 252 --
Stock issued for services -- 40,000
Changes in assets and liabilities:
Cash restricted as to withdrawal 9,868,487 (6,558,695)
Accounts receivable (21,366,397) (1,318,430)
Deferred expenses 190,220 (1,255,912)
Accounts payable and accruals 14,918,956 516,621
Amounts due to related parties (1,745) (3,326)
Income taxes payable 410,096 207,905
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NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES 12,765,209 (4,172,572)
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NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 12,765,209 (4,172,572)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD 13,944,855 11,264,950
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CASH AND CASH EQUIVALENTS, END OF PERIOD $ 26,710,064 $ 7,092,378
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SUPPLEMENTAL CASH FLOW INFORMATION:
Income taxes $ 55,696 $ --
Interest paid $ -- $ --
Interest received $ -- $ --
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</TABLE>
6
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ACLN LIMITED
NOTES TO FINANCIAL STATEMENTS
(INFORMATION WITH RESPECT TO MARCH 31, 2000 AND THE THREE
MONTHS ENDED MARCH 31, 2000 AND 1999 IS UNAUDITED)
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1. INCEPTION AND PRINCIPAL ACLN Limited was incorporated on February
ACTIVITIES 16, 1993 in Cyprus as Hemswell Holdings Co
Limited and later changed its name to ACLN
Limited. It remained dormant until
January 1, 1995, when it acquired Compagnie
Labiad de Navigation S.A.M., a Company
incorporated in Monaco. The principal
activity of the group is the operation of
liner services for the transport of cargo.
During the year the Company commenced a new
line of business of selling new automobiles
to markets in North Africa.
2. SIGNIFICANT ACCOUNTING UNAUDITED INTERIM CONSOLIDATED FINANCIAL
POLICIES STATEMENTS
In the opinion of the Company's management,
the consolidated balance sheet as of March
31, 2000, the consolidated statements of
operations and cash flows for the three
months ended March 31, 1999 and 2000, and
the consolidated statement of shareholders'
equity for the three months ended March 31,
2000 contain all adjustments (consisting of
only normal recurring adjustments)
necessary to present fairly the information
set forth therein. The results of
operations for the three months ended March
31, 2000 are not necessarily indicative of
the results for any other period. These
financial statements should be read in
conjunction with the Company's audited
financial statements as of and for the year
ended December 31, 1999.
BASIS OF PRESENTATION
The accompanying consolidated financial
statements include the accounts of ACLN
Limited and its wholly-owned subsidiary,
Compagnie Labiad de Navigation S.A.M.
(collectively the "Company"). All
significant intercompany transactions have
been eliminated. The financial statements
have been prepared on the basis of
accounting principles generally accepted in
the United States.
REVENUE RECOGNITION
The Company is a facilitator of cargo
transport and sales are recorded at the
time the shipment in completed.
7
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ACLN LIMITED
NOTES TO FINANCIAL STATEMENTS
(INFORMATION WITH RESPECT TO MARCH 31, 2000 AND THE THREE
MONTHS ENDED MARCH 31, 2000 AND 1999 IS UNAUDITED)
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CONCENTRATIONS OF CREDIT RISK/CASH
RESTRICTED AS TO WITHDRAWAL
The Company's credit risk with respect to
the trade receivables arising as a result
of sales of new automobiles is evaluated on
a specific customer basis and is considered
to be very low.
The Company's trade accounts receivable
with respect to the liner services for
the transport of cargo are collected on
its behalf by shipping agents in the
port of destination prior to the release
of the automobile to the customer.
Accordingly, the credit risk from
individual automobile shippers is
considered to be minimal. The shipping
agents deposit the proceeds for the
benefit of the Company with the local
central banking system. These amounts
are classified as Cash Restricted as to
Withdrawal in the accompanying balance
sheet. The funds are transferred to the
Company's bank accounts at the
completion of processing by the central
banking system in accordance with local
currency exchange regulations. Cash
Restricted as to Withdrawal deposited
with the central banks on behalf of the
Company by country are as follows:
<TABLE>
<CAPTION>
COUNTRY March 31, December 31,
2000 1999
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<S> <C> <C>
Angola $ 6,814,122 $ 7,608,132
Egypt 5,313,988 6,707,988
Guinea 12,114,048 13,536,832
Benin 1,948,004 1,594,867
Nigeria 5,826,092 8,708,277
Tunisia 21,745,376 25,474,021
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$53,761,630 $63,630,117
==================================================
</TABLE>
SEGMENTAL REPORTING
The Company has two reportable segments:
operation of liner services for the
transport of cargo and selling of new cars.
Required disclosure information with
respect to each segment for the three
months ended March 31, 2000 is as follows:
<TABLE>
<CAPTION>
LINER SERVICES AUTOMOBILE SALES TOTAL
-------------- ---------------- -----------
US$ US$ US$
<S> <C> <C> <C>
Sales 8,225,292 20,400,000 28,625,292
========== ========== ===========
Gross profit 3,804,470 6,400,000 10,204,470
========== ========== ===========
Total assets 83,925,423 20,400,000 104,325,423
========== ========== ===========
</TABLE>
8
