SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
-------------------
FORM 8-K/A No.1
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date or Report (Date of earliest event reported): April 30, 1993
COEUR D'ALENE MINES CORPORATION
------------------------------------------------------
(Exact name of registrant as specified in its charter)
Idaho 1-8641 82-0109423
(State or other jurisdiction of Commission I.R.S. Employer
incorporation or organization) File Number) Identification No.)
505 Front Ave., P. O. Box "I"
Coeur d'Alene, Idaho 83816
(Address of principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code: (208) 667-3511
The undersigned registrant hereby amends the following items, financial
statement, exhibits or other portions of its Current Report on Form 8-K, dated
May 2, 1995, as set forth in the pages attached hereto:
Item 7(b) - Pro Forma Financial Information
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this amendment to be signed on its behalf by the
undersigned, thereto duly authorized.
COEUR D'ALENE MINES CORPORATION
By: /s/Dennis E. Wheeler
Dennis E. Wheeler
Chairman, President and
Chief Executive Officer
Date: June 2, 1995
<PAGE>
The current Report on Form 8-K of Coeur d'Alene Mines Corporation (the
"Registrant") dated May 2, 1995 and filed on May 17, 1995, reported the sale of
the assets of the Flexaust Company Division of Callahan Mining Corporation, a
wholly-owned subsidiary of the Company, ("Callahan") and the shares representing
50% of the equity interest owned by Callahan in Flexaust Incorporated. (The
Flexaust Company Division and 50% interest in Flexaust Incorporated are
collectively referred to hereinafter as "Flexaust.") Item 7(b) of the report
stated that the pro-forma financial information required under Article 11 of
Regulations S-X would be filed not later than 60 days after the date on which
the Form 8-K was required to be filed. The purpose of this amendment is to file
pro forma financial information.
Item 7. Financial Statement, Pro Forma Financial Information And Exhibits
(b) Pro Forma Financial Information.
The following lists the unaudited pro forma financial information attached
hereto:
Page(s)
Unaudited pro forma consolidated financial
statements..................................................... 1
Pro forma consolidated balance sheet as of
March 31, 1995, December 31, 1994 and
March 31, 1994 ................................................ 2-7
Pro forma consolidated statements of operations for the three months
ended March 31, 1995, year ended December 31, 1994 and three months
ended March 31, 1994 .......................................... 8-10
Notes to unaudited consolidated pro forma
financial.statements .......................................... 11
(c) Exhibits.
None.
<PAGE>
Unaudited Pro Forma Consolidated Financial Statements
The historical balance sheet and income statement information, included in the
pro forma financial information that follows, has been adjusted "as if" the
transaction, that occurred after the date of this historical information , had
occurred at the date of the historical information. This pro forma information
is intended to help readers understand the impact of the transaction by showing
how the transaction might have affected the historical financial statements. The
following Pro Forma Consolidated Balance Sheet and Pro Forma Consolidated
Statement of Operations of the Company as of and for the three months ended
March 31, 1995, and for the year ended December 31, 1994 and for the three
months ended March 31, 1994 give effect to the sale of Flexaust by the Company.
The pro forma information is based on the historical financial statements of the
Company giving effect to the sale and the assumptions and adjustments in the
accompanying notes to the Pro Forma Financial Statements.
The Pro Forma Consolidated Financial Statements have been prepared by the
Company's management based on the historical financial statements of the
Company. These Pro Forma Financial Statements may not be indicative of the
results that actually would have occurred if the sale had been in effect on the
dates indicated or which may be obtained in the future. The Pro Forma Financial
Statements should be read in conjunction with the audited financial statements
and notes incorporated by reference or contained elsewhere herein.
1
<PAGE>
Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
<TABLE>
<CAPTION>
March 31,1995
--------------------------------------------------------
Historical Pro Forma See Proforma
Balance Adjustments Notes Balances
--------------------------------------------------------
<S> <C> <C> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $20,714,862 $3,361,109 (A) $24,075,971
Short term investments 113,640,743 113,640,743
Receivables 13,974,286 (1,794,249) (A),(B) 12,180,037
Inventories 35,903,623 (1,706,205) (A) 34,197,418
--------------------------- ------------
Total Current assets 184,233,514 (139,345) 184,094,169
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment 96,470,341 4,638,328) (A) 91,832,013
Less accumulated depreciation 40,548,341 (2,601,693) (A) 37,946,648
--------------------------- ------------
55,922,000 (2,036,635) 53,885,365
MINING PROPERTIES
Operational mining properties 98,472,697 98,472,697
Less accumulated depletion 33,529,718 33,529,718
--------------------------- ------------
64,942,979 64,942,979
Developmental properties 99,758,070 99,758,070
--------------------------- ------------
164,701,049 164,701,049
OTHER ASSETS
Notes receivable 6,000,000 (A) 6,000,000
Other 11,872,373 (548,111) (A) 11,324,262
--------------------------- ------------
$416,728,936 $3,275,909 $420,004,845
--------------------------- ------------
--------------------------- ------------
See notes to unaudited Proforma Consolidated Financial Statements
</TABLE>
2
<PAGE>
Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
<TABLE>
<CAPTION>
March 31,1995
--------------------------------------------------------
Historical Pro Forma See Proforma
Balance Adjustments Notes Balances
--------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $1,909,407 ($203,167) (A) $1,706,240
Accrued liabilities 5,928,352 (102,199) (A) 5,826,153
Cash dividends payable 2,339,376 2,339,376
Short term project financing 5,000,000 5,000,000
Accrued interest payable 5,031,739 5,031,739
Accrued salaries and wages 3,278,939 (258,782) (A) 3,020,157
Other current liabilities 173,876 173,876
Current portion of obligations
under capital leases 2,077,990 2,077,990
--------------------------- ------------
Total Current Liabilities 25,739,679 (564,148) 25,175,531
OTHER LIABILITIES
6% Subordinated Convertible Debentures 50,000,000 50,000,000
7% Subordinated Convertible Debentures 74,990,000 74,990,000
6 3/8 % Subordinated Convertible Debentures 100,000,000 100,000,000
Obligations under capital leases 1,153,694 1,153,694
Other long-term liabilities 5,286,854 5,286,854
Deferred income taxes 588,352 1,534,386 (D) 2,122,738
--------------------------- ------------
Total Long-Term Liabilities 232,018,900 1,534,386 233,553,286
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred Stock, par value $1.00 per share
authorized 10,000,000 shares, none
outstanding
Common Stock, par value $1.00 per share--
authorized 60,000,000 shares, issued
16,655,051 shares ( including 1,059,051 16,655,051 16,655,051
shares held in treasury stock)
Capital surplus 180,896,087 180,896,087
Accumulated deficit (20,218,799) 2,305,670 (B),(D) (17,913,129)
Unrealized losses on short term investments (5,037,389) (5,037,389)
Repurchased and Nonvested Shares (13,324,593) (13,324,593)
--------------------------- ------------
158,970,357 2,305,670 161,276,027
--------------------------- ------------
$416,728,936 $3,275,909 $420,004,845
--------------------------- ------------
--------------------------- ------------
See notes to unaudited Proforma Consolidated Financial Statements
</TABLE>
3
<PAGE>
Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
<TABLE>
<CAPTION>
December 31,1994
--------------------------------------------------------
Historical Pro Forma See Proforma
Balance Adjustments Notes Balances
--------------------------------------------------------
<S> <C> <C> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $15,147,908 $3,100,182 (A) $18,248,090
Short term investments 128,112,407 128,112,407
Receivables 12,881,456 (1,170,843) (A) 11,710,613
Inventories 35,946,125 (1,730,998) (A) 34,215,127
--------------------------- ------------
Total Current assets 192,087,896 198,341 192,286,237
PROPERTY, PLANT AND EQUIPMENT
Property,plant and equipment 88,468,531 (4,595,742) (A) 83,872,789
Less accumulated depreciation 39,947,983 (2,553,688) (A) 37,394,295
--------------------------- ------------
48,520,548 (2,042,054) 46,478,494
MINING PROPERTIES
Operational mining properties 102,571,977 102,571,977
Less accumulated depletion 38,162,432 38,162,432
--------------------------- ------------
64,409,545 64,409,545
Developmental properties 95,896,774 95,896,774
--------------------------- ------------
160,306,319 160,306,319
OTHER ASSETS
Notes receivable 6,000,000 (A) 6,000,000
Other 11,927,920 (499,810) (A) 11,428,110
--------------------------- ------------
$412,842,683 $3,656,477 $416,499,160
--------------------------- ------------
--------------------------- ------------
See notes to unaudited Proforma Consolidated Financial Statements
</TABLE>
4
<PAGE>
Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
<TABLE>
<CAPTION>
December 31,1994
--------------------------------------------------------
Historical Pro Forma See Proforma
Balance Adjustments Notes Balances
--------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $2,458,605 ($168,797) (A) $2,289,808
Accrued liabilities 4,158,792 (38,537) (A) 4,120,255
Accrued interest payable 4,634,961 4,634,961
Accrued salaries and wages 4,164,061 (296,260) (A) 3,867,801
Other current liabilities 1,084,366 1,084,366
Current portion of obligations
under capital leases 2,041,057 2,041,057
--------------------------- ------------
Total Current Liabilities 18,541,842 (503,594) 18,038,248
OTHER LIABILITIES
6% Subordinated Convertible Debentures 50,000,000 50,000,000
7% Subordinated Convertible Debentures 75,000,000 75,000,000
6 3/8 % Subordinated Convertible Debentures 100,000,000 100,000,000
Obligations under capital leases 2,192,856 2,192,856
Other long-term liabilities 5,234,899 5,234,899
Deferred income taxes 1,580,804 1,659,229 (D) 3,240,033
--------------------------- ------------
Total Long-Term Liabilities 234,008,559 1,659,229 235,667,788
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred Stock, par value $1.00 per
share authorized 10,000,000 shares,
none outstanding
Common Stock, par value $1.00 per share--
authorized 60,000,000 shares, issued
16,633,163 shares (including 1,059,051 16,633,163 16,633,163
shares held in treasury stock)
Capital surplus 182,881,071 182,881,071
Accumulated deficit (17,043,506) 2,500,842 (B),(D) (14,542,664)
Unrealized losses on short term investments (8,820,137) (8,820,137)
Repurchased and Nonvested Shares (13,358,309) (13,358,309)
--------------------------- ------------
160,292,282 2,500,842 162,793,124
--------------------------- ------------
$412,842,683 $3,656,477 $416,499,160
--------------------------- ------------
--------------------------- ------------
See notes to unaudited Proforma Consolidated Financial Statements
</TABLE>
5
<PAGE>
Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
<TABLE>
<CAPTION>
March 31,1994
--------------------------------------------------------
Historical Pro Forma See Proforma
Balance Adjustments Notes Balances
--------------------------------------------------------
<S> <C> <C> <C> <C>
CURRENT ASSETS
Cash and cash equivalents $27,076,924 $3,697,408 (A) $30,774,332
Short term investments 147,384,045 147,384,045
Receivables 9,925,926 (1,272,138) (A) 8,653,788
Inventories 33,839,026 (1,740,249) (A) 32,098,777
--------------------------- ------------
Total Current assets 218,225,921 685,021 218,910,942
PROPERTY, PLANT AND EQUIPMENT
Property,plant and equipment 82,715,422 (4,548,597) (A) 78,166,825
Less accumulated depreciation 37,098,626 (2,489,836) (A) 34,608,790
--------------------------- ------------
45,616,796 (2,058,761) 43,558,035
MINING PROPERTIES
Operational mining properties 91,370,967 91,370,967
Less accumulated depletion 34,540,473 34,540,473
--------------------------- ------------
56,830,494 56,830,494
Developmental properties 86,158,053 86,158,053
--------------------------- ------------
142,988,547 142,988,547
OTHER ASSETS
Notes receivable 6,000,000 (A) 6,000,000
Other 15,557,980 (358,776) (A) 15,199,204
--------------------------- ------------
$422,389,244 $4,267,484 $426,656,728
--------------------------- ------------
--------------------------- ------------
See notes to unaudited Proforma Consolidated Financial Statements
</TABLE>
6
<PAGE>
Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
<TABLE>
<CAPTION>
March 31,1994
--------------------------------------------------------
Historical Pro Forma See Proforma
Balance Adjustments Notes Balances
--------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable $1,372,278 ($215,990) (A) $1,156,288
Accrued liabilities 3,571,455 (41,557) (A) 3,529,898
Cash dividends payable 2,303,194 2,303,194
Accrued interest payable 5,213,960 5,213,960
Accrued salaries and wages 3,470,327 (277,372) (A) 3,192,955
Other current liabilities 7,512,916 7,512,916
Current portion of obligations
under capital leases 1,934,148 1,934,148
--------------------------- ------------
Total Current Liabilities 25,378,278 (534,919) 24,843,359
OTHER LIABILITIES
6% Subordinated Convertible Debentures 50,000,000 50,000,000
7% Subordinated Convertible Debentures 75,000,000 75,000,000
6 3/8 % Subordinated Convertible Debentures 100,000,000 100,000,000
Obligations under capital leases 3,737,292 3,737,292
Other long-term liabilities 4,410,189 4,410,189
Deferred income taxes 1,552,438 1,919,761 (D) 3,472,199
--------------------------- ------------
Total Long-Term Liabilities 234,699,919 1,919,761 236,619,680
COMMITMENTS AND CONTINGENCIES
STOCKHOLDERS' EQUITY
Preferred Stock, par value $1.00 per
share authorized 10,000,000 shares,
none outstanding
Common Stock, par value $1.00 per share--
authorized 60,000,000 shares, issued
16,413,080 shares ( including 1,058,453 16,413,080 16,413,080
shares held in treasury stock)
Capital surplus 179,101,154 179,101,154
Accumulated deficit (15,698,241) 2,882,642 (B),(D) (12,815,599)
Unrealized losses on short term investments (4,056,524) (4,056,524)
Repurchased and Nonvested Shares (13,448,422) (13,448,422)
--------------------------- ------------
162,311,047 2,882,642 165,193,689
--------------------------- ------------
$422,389,244 $4,267,484 $426,656,728
--------------------------- ------------
--------------------------- ------------
See notes to unaudited Proforma Consolidated Financial Statements
</TABLE>
7
<PAGE>
Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
<TABLE>
<CAPTION>
Three months ended March 31, 1995
--------------------------------------------------------
Historical Pro Forma See Proforma
Balance Adjustments Notes Balances
--------------------------------------------------------
<S> <C> <C> <C> <C>
INCOME
From mine operations:
Sale of concentrates and dore' $17,891,169 $17,891,169
Less cost of operations 16,040,529 16,040,529
--------------------------- ------------
Gross Profits 1,850,640 1,850,640
From manufacturing operations:
Sale of industrial products 3,072,691 (3,072,691) (A) 0
Less cost of manufacturing 2,801,551 (2,801,551) (A) 0
--------------------------- ------------
Gross profits 271,140 (271,140) 0
OTHER INCOME
Interest and other 2,557,293 107,847 (A),(C) 2,665,140
--------------------------- ------------
Total Income 4,679,073 (163,293) 4,515,780
EXPENSES
Administration 964,371 964,371
Accounting and legal 367,969 367,969
General corporate 1,585,847 1,585,847
Interest 2,981,865 2,981,865
Mining exploration 1,136,103 1,136,103
Idle facilities 541,011 541,011
Nonrecurring charges 0
--------------------------- ------------
Total Expenses 7,577,166 7,577,166
--------------------------- ------------
Income (Loss) from continuing operations
before income taxes (2,898,093) (163,293) (3,061,386)
Provision (benefit) for Income taxes 277,200 (69,409) (A),(D) 207,791
--------------------------- ------------
Income (Loss) from continuing operations (3,175,293) (93,884) (3,269,177)
Income (Loss) from discontinued operations,
net of applicable taxes of $1,599,703 2,399,555 (B),(D) 2,399,555
Net income (loss) ($3,175,293) $2,305,670 ($869,623)
--------------------------- ------------
--------------------------- ------------
Earnings per Share Data:
Weighted average number of shares of
Common Stock and equivalents used
in calculation 15,578,036 15,578,036 15,578,036
--------------------------- ------------
--------------------------- ------------
Income(loss) from continuing operations ($0.20) ($0.01) ($0.21)
Income(loss) from discontinued operations $0.00 $0.15 $0.15
--------------------------- ------------
Net income (loss) ($0.20) $0.15 ($0.06)
--------------------------- ------------
--------------------------- ------------
Cash dividends per share $0.15
------------
------------
See notes to unaudited Proforma Consolidated Financial Statements
</TABLE>
8
<PAGE>
Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
<TABLE>
<CAPTION>
Year ended December 31, 1994
--------------------------------------------------------
Historical Pro Forma See Proforma
Balance Adjustments Notes Balances
--------------------------------------------------------
<S> <C> <C> <C> <C>
INCOME
From mine operations:
Sale of concentrates and dore' $79,605,938 $79,605,938
Less cost of operations 67,802,368 67,802,368
--------------------------- ------------
Gross Profits 11,803,570 11,803,570
From manufacturing operations:
Sale of industrial products 11,416,654 (11,416,654) (A) 0
Less cost of manufacturing 10,263,476 (10,263,476) (A) 0
--------------------------- ------------
Gross profits 1,153,178 (1,153,178) 0
OTHER INCOME
Interest and other 12,857,321 453,161 (A),(C) 13,310,482
--------------------------- ------------
25,814,069 (700,017) 25,114,052
EXPENSES
Administration 3,824,946 3,824,946
Accounting and legal 1,673,223 1,673,223
General corporate 6,359,710 6,359,710
Interest 3,877,614 3,877,614
Mining exploration 1,558,752 1,558,752
Idle facilities 11,399,082 11,399,082
Nonrecurring charges 800,000 800,000
--------------------------- ------------
29,493,327 29,493,327
--------------------------- ------------
Income (Loss) from continuing operations
before income taxes (3,679,258) (700,017) (4,379,275)
Provision (benefit) for Income taxes 263,306 (292,007) (D) (28,701)
--------------------------- ------------
Income (Loss) from continuing operations (3,942,564) (408,010) (4,350,574)
Income (Loss) from discontinued operations,
net of applicable taxes of $1,939,236 2,908,853 (B),(D) 2,908,853
--------------------------- ------------
Net income (loss) ($3,942,564) $2,500,842 ($1,441,722)
--------------------------- ------------
--------------------------- ------------
Earnings per Share Data:
Weighted average number of shares of
Common Stock and equivalents used
in calculation 15,387,889 15,387,889 15,387,889
--------------------------- ------------
--------------------------- ------------
Income(loss) from continuing operations ($0.26) ($0.03) ($0.28)
Income(loss) from discontinued operations $0.00 $0.19 $0.19
--------------------------- ------------
Net income (loss) ($0.26) $0.16 ($0.09)
--------------------------- ------------
--------------------------- ------------
Cash dividends per share $0.15
------------
------------
See notes to unaudited Proforma Consolidated Financial Statements
</TABLE>
9
<PAGE>
Coeur d'Alene Mines Corporation Proforma Balance Sheet UNAUDITED
<TABLE>
<CAPTION>
Three months ended March 31, 1994
--------------------------------------------------------
Historical Pro Forma See Proforma
Balance Adjustments Notes Balances
--------------------------------------------------------
<S> <C> <C> <C> <C>
INCOME
From mine operations:
Sale of concentrates and dore' $20,209,582 $20,209,582
Less cost of operations 17,530,160 17,530,160
--------------------------- ------------
Gross Profits 2,679,422 2,679,422
From manufacturing operations:
Sale of industrial products 2,685,916 (2,685,916) (A) 0
Less cost of manufacturing 2,509,563 (2,509,563) (A) 0
--------------------------- ------------
Gross profits 176,353 (176,353) 0
OTHER INCOME
Interest and other 1,586,222 127,667 (A),(C) 1,713,889
--------------------------- ------------
4,441,997 (48,686) 4,393,311
EXPENSES
Administration 1,590,709 1,590,709
Accounting and legal 420,940 420,940
General corporate 1,367,106 1,367,106
Interest 2,504,582 2,504,582
Mining exploration 736,324 736,324
Idle facilities 412,344 412,344
Nonrecurring charges 0 0
--------------------------- ------------
7,032,005 7,032,005
--------------------------- ------------
Income (Loss) from continuing operations
before income taxes (2,590,008) (48,686) (2,638,694)
Provision (benefit) for Income taxes 7,291 (22,474) (D) (15,183)
--------------------------- ------------
Income (Loss) from continuing operations (2,597,299) (26,212) (2,623,511)
Income (Loss) from discontinued operations,
net of applicable taxes of $1,939,236 2,908,853 (B),(D) 2,908,853
--------------------------- ------------
Net income (loss) ($2,597,299) $2,882,642 $285,343
--------------------------- ------------
--------------------------- ------------
Earnings per Share Data:
Weighted average number of shares of
Common Stock and equivalents used
in calculation 15,338,770 15,338,770 15,338,770
--------------------------- ------------
--------------------------- ------------
Income(loss) from continuing operations ($0.17) ($0.00) ($0.17)
Income(loss) from discontinued operations $0.00 $0.19 $0.19
--------------------------- ------------
Net income (loss) ($0.17) $0.19 $0.02
--------------------------- ------------
--------------------------- ------------
Cash dividends per share $0.15
------------
------------
See notes to unaudited Proforma Consolidated Financial Statements
</TABLE>
10
<PAGE>
Notes to Unaudited Pro Forma Consolidated Financial Statements
NOTE A:
The historical balance sheet and income statement information, included in the
pro forma financial information preceding these notes, has been adjusted "as if"
the transaction, that occurred after the date of this historical information,
had occurred at the beginning of the period presented. This pro forma
information is intended to help readers understand the impact of the transaction
by showing how it might have affected the historical financial statements. The
Pro Forma Consolidated Balance Sheets reflect the Company's March 31, 1995,
December 31, 1994, and March 31, 1994 balance sheets and include the effects of
events that are directly attributable to the sale of Flexaust. The Pro Forma
Consolidated Statements of Operations assume the sale had occurred as of January
1, 1994 and January 1, 1995, and reflect the results of the Company for the year
ended December 31, 1994 and three months ended March 31, 1995, and March 31,
1994, and include the effects of events that are directly attributable to the
sale. The effective date of closing of the Flexaust transaction was May 2, 1995.
The asset and stock Purchase Agreement required the buyers to pay $10 million of
which $4 million was paid on the closing date. The remainder of the purchase
price is to be paid in annual installments until May 1, 2000. The unpaid notes
will accrue interest at an annual rate of 7%.
NOTE B:
The gain on the sale of Flexaust is calculated as of the beginning of periods
presented as follows:
3/31/95 12/31/94 3/31/94
Sales Proceeds $10,000,000 $10,000,000 $10,000,000
Net Assets Sold (6,000,742) (5,151,911) (5,151,911)
Income Taxes (1,599,703) (1,939,236) (1,939,236)
------------ ------------ ------------
Gain on Sale $2,399,555 $2,908,853 $2,908,853
------------ ------------ ------------
------------ ------------ ------------
The gain on sale of Flexaust is included as income from discontinued operations
on the Pro Forma Statement of Operations.
NOTE C:
Interest income is calculated on the initial payment of $4,000,000 at an assumed
rate of 5%. The remaining notes accrue interest at an annual rate of 7%,
pursuant to the asset and stock Purchase Agreement.
NOTE D:
Income tax effects on the pro forma gain on the sale of Flexaust are calculated
based on the Company's statutory rate of 40% for federal and state taxes.
11
<PAGE>