SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 12b-25
Commission File Number: 001-12837
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NOTIFICATION OF LATE FILING
(Check One): [X] Form 10-K [ ] Form 11-K [ ] Form 2-F
[ ] Form 10-Q [ ] Form N-SAR
For Period Ended:
February 28, 1999
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[ ] Transition Report on Form 10-K [ ] Transition Report on Form 10-Q
[ ] Transition Report on Form 20-F [ ] Transition Report on Form N-SAR
[ ] Transition Report on Form 11-K
For the Transition Period Ended:
______________________________________________________________________
READ ATTACHED INSTRUCTION SHEET BEFORE PREPARING FORM.
PLEASE PRINT OR TYPE.
Nothing in this form shall be construed to imply that the
Commission has verified any information contained herein
If the notification relates to a portion of the filing checked
above, identify the Item(s) to which the notification relates:
______________________________________________________________________
______________________________________________________________________
PART I. REGISTRANT INFORMATION
Full name of registrant
Pameco Corporation
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Former name if applicable
N/A
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Address of principal executive office (STREET AND NUMBER)
1000 CENTER PLACE
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City, State and Zip Code
NORCROSS, GA 30093
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<PAGE>
PART II. RULE 12B-25 (B) AND (C)
If the subject report could not be filed without unreasonable
effort or expense and the registrant seeks relief pursuant to Rule
12b-25(b), the following should be completed. (Check box if
appropriate.)
[X]
(a) The reasons described in reasonable detail in Part III of
this form could not be eliminated without unreasonable effort or
expense;
(b) The subject annual report, semi-annual report, transition report
on Form 10-K, 20-F, 11-K or Form N-SAR, or portion thereof will be filed on
or before the 15th calendar day following the prescribed due date; or the
subject quarterly report or transition report on Form 10-Q, or portion thereof
will be filed on or before the fifth calendar day following the prescribed
due date; and
(c) The accountant's statement or other exhibit required by Rule
12b-25(c) has been attached if applicable.
PART III. NARRATIVE
State below in reasonable detail the reasons why Form 10-K, 11-K,
20-F, 10-Q, N-SAR or the transition report portion thereof could not
be filed within the prescribed time period. (Attach extra sheets if
needed.)
The Registrant is in the process of negotiating with certain of its
lenders amendments to certain loan agreements. Such amendments, if
consummated, will materially impact the information to be set forth
in "Management's Discussion and Analysis of Financial Condition and
Results of Operations" and other disclosure to be included in the
Registrant's Annual Report on Form 10-K.
PART IV. OTHER INFORMATION
(1) Name and telephone number of person to contact in regard to
this notification
Jerry W. Bowman (770) 798-0700
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(Name) (Area Code) (Telephone number)
(2) Have all other periodic reports required under Section 13 or
15(d) of the Securities Exchange Act of 1934 or Section 30 of the
Investment Company Act of 1940 during the preceding 12 months or for
such shorter period that the registrant was required to file such
report(s) been filed? If the answer is no, identify report(s).
[x] Yes [ ] No
(3) Is it anticipated that any significant change in results of
operations from the corresponding period for the last fiscal year will
be reflected by the earnings statements to be included in the subject
report or portion thereof?
[x] Yes [ ] No
If so: attach an explanation of the anticipated change, both
narratively and quantitatively, and, if appropriate, state the reasons
why a reasonable estimate of the results cannot be made.
On February 25, 1999, the Registrant issued a press release
announcing its preliminary fourth quarter and year-end outlook.
A copy of that press release is attached hereto as Attachment A. In
addition, on June 2, 1999, the Registrant issued another press release
announcing its actual earnings for the fiscal year ended February 28,
1999. A copy of that press release is attached hereto as Attachment B.
PAMECO CORPORATION
-------------------------------------------
(Name of registrant as specified in charter)
Has caused this notification to be signed on its behalf by the
undersigned thereunto duly authorized.
Date
June 2, 1999
- ----------------------------
/s/ Jerry W. Bowman
By ---------------------------------------
Jerry W. Bowman
Chief Operating Officer
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Attachment A
PAMECO
CORP
CONTACT:
Van Negris / Philip J. Denning
Kehoe, White, Van Negris & Company, Inc.
(212) 396-0606
FOR IMMEDIATE RELEASE
- ---------------------
PAMECO REPORTS PRELIMINARY FISCAL FOURTH QUARTER, YEAR-END OUTLOOK
NORCROSS, GA - FEBRUARY 23, 1999 - Pameco Corporation (NYSE: PCN)
today announced that, as a result of the initial findings of an
internal operating review initiated since the change of senior
management announced on January 11th, the Company preliminarily
expects to report an operating loss for the fiscal 1999 fourth quarter
to end February 28th that is significantly larger than previously
anticipated.
The widened operating loss for the quarter stems principally from
slower than anticipated sales volumes, increased interest expense
associated with higher levels of inventory, increased operating
expense and other operating inefficiencies principally related to the
effect at all levels of the Company of continuing problems with
implementation of the Company's new enterprise-wide management
information system (MIS).
For the full fiscal year to end February 28, 1999, the Company expects
to report a profit from operations.
The Company also announced that it expects to take a one-time charge
to fiscal 1999 earnings consisting of: (i) the write-off of certain
capitalized training and software costs relating to implementation of
the new MIS; (ii) a significant increase in the Company's allowance
for losses on Accounts Receivable relating to the increase in aging of
such receivables because of billing statement delays and other
inefficiencies associated with the transition to the new MIS; (iii)
the write-down of inventories associated with certain discontinued
product lines; (iv) other charges for damaged equipment in inventory,
stemming from an accounting policy change; (v) costs relating to the
closing or combining of branch offices and to reorganization of the
Company's distribution system across the country; and (vi) anticipated
severance payments to the Company's former president and chief
executive officer, a former executive vice president and its former
chief information officer.
More specific operating data for the 1999 fiscal year will not be
available until after the close of the fiscal year on February 28th.
Similarly, the scope and amount of the costs associated with each
category of the expected one-time charge cannot yet be determined. As
such, the Company stated that it intends to report to shareholders bi-
weekly beginning with the week of March 15th through press releases
updating the status of the Company's operating results. To further
insure strict compliance with the disclosure policy, neither the
Company nor any officer or director of the Company will comment on the
status of operations outside the content of the bi-weekly releases
--m o r e--
Pameco Corporation
Page Two
February 23, 1999
until after the final audited results for the fiscal year are
published and filed with the SEC in a Form 10-K report.
James R. Balkcom, Chairman, President & Chief Executive Officer,
stated: "At the time of the change in our senior management in early
January, I promised to provide our shareholders with a broad overview
and strategic perspective on the system transition and the overall
business within a reasonable time after the close of the fiscal year.
In the interim six weeks, the preliminary findings of our ongoing
operations review suggested that the probable adverse impact on our
financial results will be more serious than we anticipated. We are
working very hard to quantify and resolve the underlying issues. As a
consequence of our findings to date, we have issued this release and
determined to issue bi-weekly updates until the filing of our annual
report on Form 10-K. As part of the Form 10-K for the fiscal year,
which is required to be filed within 90 days of the close of the
fiscal year, the Company will report on the status and outlook for the
business, and I will then be free to comment openly on its content."
Pameco Corporation has established a leading position in the
consolidating distribution segment of the climate control industry,
building a centralized, and national distribution network. Pameco's
products include a complete range of heating, air conditioning and
refrigeration equipment, parts and supplies ("HVAC/R") for the light
commercial and residential HVAC markets and commercial refrigeration
market. The products sold by Pameco are used principally for the
repair and replacement of existing HVAC/R and for new construction.
The Company has 361 branches and 6 distribution centers in 47 states
and in 95 of the top 100 population centers in the United States.
"Safe Harbor" Statement under the Private Securities Litigation Reform
Act of 1995: Certain statements and other information contained in
this press release are "forward-looking" statements within the meaning
of the Private Securities Litigation Reform Act of 1995 that involve
risks and uncertainties including, without limitation, the Company's
plans for future business development activities, product mix, margin
enhancements, the timely review of the Company's MIS and the
successful implementation of the MIS and any additional enterprise
wide software required to enhance the functionality thereof, eventual
improvements to the Company's logistics and delivery system through
the MIS, the Company's ability to operate acquired companies in a
profitable manner, and other risks and uncertainties described in the
Company's reports and filings with the Securities and Exchange
Commission. Investors are cautioned that any such forward-looking
statements are not guarantees of future performance, involve risks and
uncertainties, and that actual results may differ materially from
those contemplated by such forward-looking statements. The
projections contained herein speak only to the Company's expectations
as of the date of this press release. The Company expressly disclaims
any obligation or undertaking to release publicly any updates or
revisions to any such statement to reflect any change in the Company's
expectations or any change in events, conditions or circumstances on
which any such statement is based.
# # #
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Attachment B
PAMECO
CORP
CONTACT:
Olivia Yuspa Van Negris / Philip J. Denning
Pameco Corporation Kehoe, White, Van Negris & Company, Inc.
(770) 798-0600 (212) 396-0606
FOR IMMEDIATE RELEASE
- ---------------------
PAMECO CORPORATION REPORTS 1999 FULL FISCAL YEAR AND
FOURTH QUARTER RESULTS IN LINE WITH PREVIOUSLY ANNOUNCED EXPECTATIONS;
ANNOUNCES DELAY IN FILING FORM 10-K;
EXPECTS LOWER THAN ANTICIPATED FISCAL 2000 FIRST QUARTER RESULTS
NORCROSS, GA - JUNE 2, 1999 - Pameco Corporation (NYSE: PCN) today
announced results for the 1999 fiscal year and fourth quarter ended
February 28, 1999 in line with previously announced expectations.
Revenues for the 1999 fiscal year ended February 28, 1999 were $625.0
million, up 29.1 percent from $484.0 million in fiscal 1998. For the
1999 fiscal fourth quarter, revenues increased 13.9 percent to $121.5
million from $106.6 million in the comparable period a year ago.
Same store sales growth was 9.6 percent in the 1999 fiscal year and
5.3 percent in the fiscal 1999 fourth quarter. National account sales
increased 29.5 percent to $50.5 million in fiscal 1999 and increased
by 20.5 percent to $11.3 million in the fiscal 1999 fourth quarter as
compared to prior year periods.
James R. Balkcom, Chairman, President and Chief Executive Officer,
stated: "In fiscal 1999, Pameco primarily focused on generating net
sales from the repair and replacement market, which is higher margin
and less cyclical than the new construction market due to end users'
needs for immediate service and expert technical advice. Although
acquired branches contributed significantly to the year-to-year growth
in net sales, net sales of HVAC products on a same store basis
increased by 14.8 percent for the year ended February 28, 1999 as
compared to the prior year. Sales of refrigeration equipment, parts,
and supplies increased 3.1 percent on a daily same store basis for the
year ended February 28, 1999 as compared to the prior year."
Operating earnings in fiscal 1999 were $6.9 million compared to $17.5
million in the prior year. For the fiscal 1999 fourth quarter, the
operating loss was $15.4 million compared to operating earnings of
$710,000 in the fiscal 1998 fourth quarter.
The net loss for the 1999 fiscal year was $188,000 compared to net
income of $8.8 million in the 1998 fiscal year. For the fourth quarter
of fiscal 1999, the net loss was $10.5 million compared to net
earnings of $658,000 in the comparable period in fiscal 1998. For
fiscal 1999, the diluted loss per share was $0.02 compared to diluted
earnings per share of $1.08 in fiscal 1998. The diluted loss per
share for the fiscal 1999 fourth quarter was $1.18 compared to diluted
earnings per share of $0.07 reported in the comparable period a year
ago.
-- m o r e --
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Pameco Corporation
June 2, 1999
Page Two
The operating loss for the fiscal 1999 full year and fourth quarter
stems principally from previously announced non-recurring and
restructuring charges to fiscal 1999 earnings consisting primarily of:
(i) the write down of inventories associated with certain discontinued
product lines, (ii) other charges for damaged equipment in inventory,
(iii) significant additional expenses incurred during the Company's
conversion to a new enterprise-wide management information system
("MIS"), (iv) the expensing of certain training and software costs
relating to the implementation of the new MIS, (v) non-recurring
charges of $1.5 million related to future severance payments to be
paid to the Company's former president and chief executive officer, a
former executive vice president, and its former chief information
officer, (vi) a $3.2 million restructuring charge for the costs
relating to the downsizing of distribution centers and the closing or
combining of branch locations, and (vii) an $840,000 charge for costs
associated with terminating its dedicated fleet contract.
Excluding the effect of such non-recurring and restructuring charges,
for the 1999 fiscal year, operating earnings would have been $20.3
million, net income would have been $8.1 million, and diluted earnings
per share would have been $0.89.
The Company also announced that it would delay the filing of its Annual
Report on Form 10-K for the fiscal year ended February 28, 1999 with the
Securities and Exchange Commission, previously expected to be filed yesterday
afternoon, and has filed for an extension. The Company is currently
negotiating an amendment to its debt agreement with its lenders, which will
materially impact the MD&A and other disclosures in the Company's 10-K. The
Company expects to file its Form 10-K within the next two weeks.
The Company further announced that it currently anticipates revenues
for the fiscal 2000 first quarter ended May 31, 1999 will range
between $158 million and $163 million. At such revenue levels, the
Company expects to report fiscal 1999 first quarter operating earnings
only slightly above breakeven. The Company attributed the anticipated
results to the previously announced on-going resolution of issues
associated with the implementation of the Company's new enterprise-
wide MIS and unseasonably cool weather patterns in May that prevailed
throughout much of the United States.
Mr. Balkcom continued: "Fiscal 1999 was a year marked by both
challenge and investment in our future despite encountering operating
issues, principally related to the transition to our new enterprise-
wide MIS, which severely impacted our financial results in the third
and fourth quarters of fiscal 1999 and the first quarter of fiscal
2000. We have made significant progress towards resolving several of
the identified problems with the MIS and are beginning to make use of
the system's expanded range of capabilities at this early stage of
Phase I implementation. CD Group, Inc., which has successfully
implemented over 65 JD Edwards enterprise software solutions, is
assisting in the integration of Pameco's new MIS system.
"Apart from this complex, on-going systems implementation, our
accomplishments in fiscal 1999 were substantial. We continued to
aggressively pursue strategic acquisitions, that we believe will be
accretive to earnings and enhance our ability to serve national
accounts, with 6 acquisitions that added 33 branches to our branch
network, which had 361 branches in 47 states and Guam located in 95 of
the top 100 population centers in the country as of February 28, 1999.
-- m o r e --
<PAGE>
<PAGE>
Pameco Corporation
June 2, 1999
Page Three
"Given that our ability to integrate acquisitions has been hampered by
the conversion to the new MIS, we have intentionally moderated our
pursuit of acquisitions until these issues have been more completely
addressed.
"During the year, we added several new Partners to the Pameco Supplier
Alliance, including Mitsubishi Electric Ductless Split Systems, Thomas
& Betts Reznor Heating Products, Research Products' Aprilaire
Humidifiers and Spaceguard Media Filters, Friedrich Room Air
Conditioners and Honeywell Commercial Controls. Our new Pameco
Supplier Alliance Partners greatly enhance Pameco's ability to meet
our customers' total needs.
"We were proud to be honored, for the third year in a row, by Sears as
a Partner in Progress. This award recognizes those vendors, from over
10,000 vendors competing for this award, who have demonstrated
excellence in product innovation, delivered products of superior
quality and value, and who have demonstrated in their dealings with
Sears, high levels of integrity and a commitment to excellent service.
We are honored to be a member of this select group.
"Looking ahead, we believe that fiscal 2000 will be a year of
transition, as we focus on implementing key elements of our business
strategy including realizing the advantages of scale provided from our
acquisitions of the past two years and growing market share in our
present markets.
"During the last three fiscal years, Pameco has made fifteen
acquisitions in line with its strategy to occupy a leading position in
the consolidating distribution segment of the climate control
industry, building a centralized national distribution network.
Through these acquisitions, our Company has established a national
presence, spanning 95 of the top 100 population centers in the United
States. With these acquisitions completed, we are now focused on
integrating the business processes and information systems of the
acquired companies and on growing our market share in these 95 large
markets. Once this integration is complete and the methods are
installed to facilitate targeted growth, we will again evaluate the
market opportunities for acquisitions.
"We intend to realize the advantages provided from our scale by
achieving the following objectives in fiscal 2000:
"(i) REDEFINE AND ENHANCE THE KEY BUSINESS PROCESSES ACROSS
THE COMPANY'S LOCATIONS TO ENABLE THE EFFICIENT AND EFFECTIVE DELIVERY
OF ITS PRODUCTS AND SERVICES AND THE COMMUNICATION OF INFORMATION SO
AS TO PROVIDE ENHANCED CUSTOMER SERVICE AT THE LOWEST TOTAL DELIVERED
COST. This redefinition and enhancement will focus on the manner in
which Pameco conducts business with its customers and suppliers. We
will enhance the point of customer focus in our branches after
carefully evaluating the potential in each of the markets served.
Several branches will be resized, based on the local market demands
and potential. The method of resupply to these branches will be
redesigned through shifts in the current distribution center network
and redefinition of key supplier responsibilities for inventory
management and flow. With the enhanced emphasis on customer focus at
the branches, certain functions performed in Pameco's Norcross
location will be shifted closer to our customers so as to provide more
timely and effective customer service.
-- m o r e --
<PAGE>
<PAGE>
Pameco Corporation
June 2, 1999
Page Four
"(ii) SUCCESSFULLY COMPLETE THE INITIAL INSTALLATION OF AN
ENTERPRISE SYSTEM TECHNOLOGY SOLUTION TO ENABLE MORE TIMELY AND
ACCURATE DATA COMMUNICATIONS SO AS TO PROVIDE ENHANCED CUSTOMER
SERVICE AT THE LOWEST TOTAL DELIVERED COST. The installation of the
enterprise system technology solution will enable the enhancement of
the customer focus in Pameco's branches. The initial software
installation was troubled, but is now progressing quickly. We expect
the installation of enhanced functionality and the training of
personnel will be completed during fiscal 2000. The applications of
this enabling technology are already being extended. All branches
will have Internet connectivity by Fall of 1999. E-commerce
applications for customers and for suppliers are currently being
evaluated. We anticipate that a number of our key business processes,
which have high customer impact, will lend themselves to enhancement
once the new technology platform is in place.
"(iii) ENHANCE THE CAPABILITIES OF PAMECO'S ASSOCIATES TO
THOSE SKILL SETS REQUIRED IN AN INTEGRATED SUPPLY COMPANY WHICH USES
ITS SCALE TO INTERFACE WITH ITS SUPPLIERS AND TO SERVE CUSTOMERS MORE
EFFICIENTLY AND EFFECTIVELY. The skill sets of our associates will
be extended through a number of training programs currently under
development. These programs, some of which are being contracted from
outside the Company, focus on customer service skills, technical
skills, interpersonal skills and business management skills. An
example of the type of programs being developed are the technical
training programs necessary for North American Training Excellence
("NATE") certification. A number of these programs will be delivered
at local sites over the Internet using our new technology platform.
The first of these programs is expected to be available in the fall of
1999.
"We intend to realize our goal of growing market share in our present
markets by achieving the following objectives in fiscal 2000:
"(i) EXPAND THE PRODUCTS AND SERVICES AVAILABLE TO OUR CURRENT
CUSTOMERS. Having the right product at the right time and at the
right price available to the customer is key to Pameco's business.
Our scale provides us with a unique opportunity in the market to have
a greater array of products and services available to our customers.
With the enhancing of our customer focus in local markets, we will
undertake customer outreach programs to better understand how we can
bring greater value to the relationships we have with our customers.
The redefinition of our business processes and the installation of the
new information technology platform will provide Pameco with the
ability to make each branch more unique and more tailored to the needs
of each local market.
"(ii) EXPAND THE CUSTOMER BASE SERVED BY PAMECO'S BRANCHES BY
BETTER UNDERSTANDING THE NEEDS OF POTENTIAL CUSTOMERS AND RETROFITTING
THE BRANCHES TO RESPOND TO THE NEEDS OF LOCAL MARKETS. The growth
opportunity in these 95 markets is large. By enhancing our customer
focus in local markets, Pameco's branches will be able to leverage the
scale of our Company to bring products and services into a 'one-stop
shopping' environment. The marketing outreach programs will focus
first on the needs of our existing customers, then on the needs of
potential customers within local markets. Local market penetration
programs will be developed based on customer attractiveness criteria
currently under development. The first of these programs are expected
to be available in fall 1999.
-- m o r e --
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<PAGE>
Pameco Corporation
June 2, 1999
Page Five
"We believe that the achievement of these strategic objectives during
fiscal 2000 fit our history of investing for profitable growth and
maximizing value for both our customers and our shareholders. We will
be laying the groundwork for even greater successes than we've had in
the past.
"We are a strong company with a committed team, a clear purpose and a
high standard of personal conduct in addressing our responsibilities
to our shareholders, to our customers and suppliers on whom we depend,
and to our associates. That is a winning combination. I thank you
for your understanding and for your continuing support and
confidence."
Pameco Corporation is one of the largest distributors of HVAC systems
and equipment and refrigeration products in the United States, with
predecessor corporations dating back to 1931, and has established a
leading position in the consolidating distribution segment of the
climate control industry, building a centralized national distribution
network. Pameco's products include a complete range of heating, air
conditioning and refrigeration ("HVAC/R") equipment, parts and
supplies for the light commercial and residential HVAC markets and
commercial refrigeration market. The products sold by Pameco are used
principally for the repair and replacement of existing HVAC/R and for
new construction. The Company had 361 branches in 47 states and Guam
which are located in 95 of the top 100 population centers in the
country as of February 28, 1999.
"SAFE HARBOR" STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM
ACT OF 1995: Certain statements contained in this press release are
"forward-looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995, including without limitation
the Company's plans for future business development activities,
product mix, margin enhancements, the timely review of the Company's
management information system ("MIS") and the successful
implementation of the MIS and any additional enterprise wide software
required to enhance the functionality thereof, eventual improvements
to the Company's logistics and delivery system through the MIS, and
the Company's ability to operate acquired companies in a profitable
manner. Such forward-looking statements are subject to risks,
uncertainties and other factors which could cause actual results to
differ materially from future results expressed or implied by such
forward-looking statements. Investors are cautioned that any forward-
looking statements are not guarantees of future performance and
involve risk and uncertainties and that actual results may differ
materially from those contemplated by such forward-looking statements.
Such risks include, without limitation, risks associated with the
Company's information technology, including its MIS, the risk that the
Company will not be able to successfully implement its new strategies,
the risk that new acquisitions will not be successfully integrated
into the Company, the seasonality and cyclicality of the Company's
sales, the Company's competition, the Company's dependence on supplier
relationships, the increased presence of buying groups and risks
related to the Company's borrowings.
Note: Additional information about Pameco Corporation is available on
Pameco's World Wide Web site on the Internet located at
http://www.pameco.com.
-- Statistical Tables Follow
-- m o r e --
<PAGE>
Pameco Corporation
June 2, 1999
Page Six
<TABLE>
<CAPTION>
PAMECO CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share amounts)
Year Ended Three Months Ended
February 28, February 28,
------------ ------------
1999 1998 1999 1998
---- ---- ---- ----
<S> <C> <C> <C> <C>
Net sales $625,042 $484,010 $121,488 $106,618
Costs and expenses:
Cost of products sold 478,093 368,685 94,564 79,860
Warehousing, selling,
and administrative expenses 134,662 98,715 36,773 26,252
Severance 1,532 - 1,532 -
Restructuring 4,025 - 4,025 -
Amortization of excess of cost over acquired
net assets 1,023 381 272 102
Amortization of excess
of acquired net assets over cost (1,224) (1,224) (306) (306)
-------- ------- -------- --------
618,111 466,557 136,860 105,908
-------- ------- -------- --------
Operating earnings 6,931 17,453 (15,372) 710
Other expenses:
Interest expense, net (5,146) (1,980) (1,684) (569)
Discount on sales of accounts receivable
and other expenses (2,904) (3,086) (105) (582)
-------- ------- -------- --------
(Loss) income before income taxes (1,119) 12,387 (17,161) (441)
(Benefit) provision for income taxes (931) 3,541 (6,675) (1,099)
-------- ------- -------- --------
Net (loss) income $ (188) $ 8,846 $(10,486) $ 658
======== ======= ======== ========
Basic (loss) earnings per share $(0.02) $1.14 $(1.18) $0.08
===== ==== ===== ====
Basic weighted average
shares outstanding 8,802 7,779 8,867 8,706
===== ===== ===== =====
Diluted (loss) earnings per share $(0.02) $1.08 $(1.18) $0.07
====== ==== ===== ====
Diluted weighted average
shares outstanding 8,802 8,183 8,867 9,092
===== ===== ===== =====
</TABLE>
- m o r e -
Pameco Corporation
June 2, 1999
Page Seven
<TABLE>
<CAPTION>
PAMECO CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
February 28, February 28,
1999 1998
---- ----
<S> <C> <C>
Assets
Current assets:
Cash and cash equivalents $ 148 $ 142
Accounts receivable, less allowance of $6,210
at February 28, 1999 and $3,992 at February 28, 1999 35,507 35,266
Inventories 157,621 123,041
Prepaid expenses and other current assets 4,149 1,554
-------- --------
Total current assets 197,425 160,003
Property and equipment, net 15,694 11,603
Excess of cost over acquired net assets, net 44,948 25,613
Deferred income tax assets and other assets 15,821 13,593
-------- --------
Total assets $273,888 $210,812
======== ========
Liabilities and shareholders' equity
Current liabilities:
Accounts payable $ 68,521 $ 60,323
Accrued compensation and withholdings 4,661 5,115
Notes payable - 7,700
Other accrued liabilities and expenses 26,723 18,112
-------- --------
Total current liabilities 99,905 91,250
Long-term liabilities:
Debt 95,608 42,072
Capital lease obligations, warranty reserves, and other 3,675 3,839
-------- --------
Total long-term liabilities 99,283 45,911
Excess of acquired net assets over cost, net 4,160 4,999
Total shareholders' equity 70,540 68,652
-------- --------
Total liabilities and shareholders' equity $273,888 $210,812
======== ========
</TABLE>
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