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Previous: FIDELITY BANCORP INC, 10KSB/A, 1997-04-24 |
Next: WINTHROP CALIFORNIA INVESTORS LTD PARTNERSHIP, 8-K, 1997-04-24 |
<PAGE>
FORM 8-K/A
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
AMENDMENT TO APPLICATION OR REPORT
Filed pursuant to Section 12, 13, and 15(d) of
THE SECURITIES EXCHANGE ACT OF 1934
ENTOURAGE INTERNATIONAL, INC.
AMENDMENT NO. 1
The undersigned registrant hereby amends the following items, financial
statements, exhibits or other portions of its Current Report on Form 8-K dated
January 31, 1997,as set forth in the pages attached hereto:
Item 7. Financial Statements and Exhibits
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, thereunto duly authorized.
Entourage International, Inc.
Date: April 16, 1997 By: /s/ JOHN C. RIEMANN
---------------------
John C. Riemann
President
<PAGE>
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits
(A) Financial Statements of Business Acquired:
1. Audited Balance Sheet of Biogime Franchise Services, Inc. for
the physical year ended April 30, 1996
2. Audited Statement of Income of Biogime Franchise Services, Inc.
as of April 1996 and April 1995
3. Unaudited Balance Sheet of Biogime Franchise Services, Inc. as
of November 30, 1996
4. Unaudited Statement of Income of Biogime Franchise Services,
Inc. for the seven months ended November 1996 and November 1995
(B) Pro Forma Financial Information:
Entourage International, Inc. and Biogime Franchise Services, Inc.
Unaudited Pro Forma Consolidated Financial Information
1. Unaudited Pro Forma Consolidated Statement of Income of
Entourage International, Inc. and Biogime Franchise
Services, Inc. as of September 30, 1996
2. Unaudited Pro Forma Statement of Income of Biogime Franchise
Services, Inc. detailing Media related Sales and Expense not
included in the merger as of September 30, 1996
3. Unaudited Pro Forma Consolidated Balance Sheet of Entourage
International, Inc. and Biogime Franchise Services, Inc. as
of November 30, 1996
4. Unaudited Pro Forma Balance Sheet of Biogime Franchise
Services, Inc. detailing Assets and Liabilities, as of
November 30, 1996, not included in merger
5. Unaudited Pro Forma Statement of Income of Biogime Franchise
Services, Inc. detailing Media related Sales and Expenses,
as of November 30, 1996, not included in merger
6. Unaudited Pro Forma Consolidate Statement of Income of
Entourage International, Inc. and Biogime Franchise
Services, Inc. as of November 30, 1996
2
<PAGE>
Biogime Franchise Services, Inc.
Balance Sheet
as of
April 30, 1996
<TABLE>
<CAPTION>
Assets
<S> <C>
CASH & CASH EQUIVALENTS
Cash $ 6,051
Accounts Receivable 85,799
Accounts Receivable EII 142,010
--------
Total A/R 227,809
--------
Loan to Officers 54,253
Inventory -
Prepaids 3,137
--------
Total Other Assets 3,137
--------
--------
TOTAL CURRENT ASSETS 291,250
--------
PROPERTY, PLANT & EQUIPMENT
Depreciable Assets 28,875
Accumulated Depreciation (3,706)
--------
Net PP&E 25,169
--------
OTHER NON-CURRENT ASSETS
Organization Costs Net of Amort. 28,719
Total Non-Current Assets 53,888
--------
TOTAL ASSETS $345,138
========
Liabilities
ACCOUNTS PAYABLE - TRADE
Accounts Payable 92,785
NOTES PAYABLE - CURRENT
Note Payable to Related Parties 159,744
Note Payable to Officer 9,000
--------
Total N/P Current 168,744
--------
Lease Payable 23,373
--------
--------
TOTAL LIABILITIES 284,902
--------
STOCKHOLDER'S EQUITY
Paid in Capital 10,000
Retained Earnings 50,236
--------
60,236
--------
TOTAL LIABILITIES & EQUITY $345,138
========
</TABLE>
3
<PAGE>
Biogime Franchise Services, Inc.
Income Statement Comparison
as of
April 30, 1996
<TABLE>
<CAPTION>
April-96 April-95
----------- ----------
<S> <C> <C>
Income
Sales $ 577,556 $ 765,805
Other Income 7,721 1,602
----------- ----------
Total Sales 585,277 767,407
----------- ----------
Cost of Sales 237,934 389,782
----------- ----------
Gross Margin 347,343 377,625
----------- ----------
Expenses
Selling Expenses 105,425 122,813
Administrative Expenses 206,142 135,005
General Expenses 40,892 23,614
----------- ----------
Total Sales, Admin. & General Expenses 352,459 281,432
----------- ----------
Interest 6,796 1,145
Depreciation 2,798 908
Amortization 9,736 9,736
----------- ----------
Total Interest, Dep. & Amortization 19,330 11,789
----------- ----------
----------- ----------
Total Expenses 371,789 293,221
----------- ----------
----------- ----------
Net Income Before Taxes (24,446) 84,404
----------- ----------
Taxes - 8,923
----------- ----------
Net Income (Loss) (24,446)(a) 75,481 (a)
=========== ==========
</TABLE>
(a) Includes prior BFS operations not included in merger.
4
<PAGE>
Biogime Franchise Services, Inc.
Balance Sheet
as of
November 30, 1996
<TABLE>
<CAPTION>
Assets
<S> <C>
CASH & CASH EQUIVALENTS
Cash $ 903
Accounts Receivable 166,603
Accounts Receivable EII 225,153
---------
Total A/R 391,756
---------
Loan to Officers 95,843
Inventory -
Prepaids -
---------
Total Other Assets -
---------
---------
TOTAL CURRENT ASSETS 488,502
---------
PROPERTY, PLANT & EQUIPMENT
Depreciable Assets 18,887
Accumulated Depreciation (3,706)
---------
Net PP&E 15,181
---------
OTHER NON-CURRENT ASSETS
Organization Costs Net of Amort. -
Deposits 2,692
---------
Total Other Assets 2,692
---------
---------
Total Non-Current Assets 17,873
---------
TOTAL ASSETS $ 506,375
=========
Liabilities
ACCOUNTS PAYABLE - TRADE
Accounts Payable 149,121
NOTES PAYABLE - CURRENT
Note Payable to Related Parties 159,744
Notes Payable 73,250
Note Payable to Officer 12,500
---------
Total N/P Current 245,494
---------
Note Payable LT 27,500
Lease Payable 5,700
---------
TOTAL LIABILITIES
---------
427,815
---------
STOCKHOLDER'S EQUITY
Paid in Capital 10,000
Retained Earnings 68,560
---------
78,560
---------
TOTAL LIABILITIES & EQUITY $ 506,375 (a)
=========
</TABLE>
(a) Includes prior BFS operations not included in merger.
5
<PAGE>
Biogime Franchise Services, Inc.
Income Statement Comparison
for the Seven Months Ending
November 30, 1996
<TABLE>
<CAPTION>
Nov-96 Nov-95
-------------- ----------------
<S> <C> <C>
SALES
Media $1,140,429 $ 76,615
Product 236,022 276,384
Freight Income 8,088 10,316
-------------- ----------------
TOTAL SALES 1,384,539 363,315
-------------- ----------------
COST OF MATERIALS
Media Costs 1,002,065 -
Product Costs 141,493 152,245
-------------- ----------------
COST OF SALES 1,143,558 152,245
-------------- ----------------
GROSS MARGIN 240,981 211,070
-------------- ----------------
PERSONNEL COSTS
Compensation 76,663 45,387
Insurance 2,587 6,241
Taxes 5,596 18,169
-------------- ----------------
TOTAL PERSONNEL COSTS 84,846 69,797
-------------- ----------------
EXPENSES
Accounting 500 854
Advertising 2,774
Automobile 26,777 32,566
Bad Debt 349
Bank Charges 1,016 651
Dues, Subscriptions & Fees 207
Entertainment & Meals 2,157 2,242
Freight In-Bound 512 3,773
Freight Out-Bound 15,356 11,155
Insurance - General 4,057 2,301
Interest Expense 3,960 2,668
Lease - Building 10,328 8,438
Lease - Equipment 6,274
Mail Delivery 1,092 153
Management Fees 22,750 17,805
Miscellaneous 1,249
Office Supplies 6,241 7,383
Outside Services 1,857
Repairs & Maintenance 2,632 410
</TABLE>
6
<PAGE>
Biogime Franchise Services, Inc.
Income Statement Comparison
for the Seven Months Ending
November 30, 1996
<TABLE>
<CAPTION>
Nov-96 Nov-95
-------------- -------------
<S> <C> <C>
Taxes - State & Local 336
Telephone 10,685 12,091
Travel & Lodging 4,755 7,573
-------------- -------------
TOTAL OPERATING EXPENSES 123,090 112,837
-------------- -------------
-------------- -------------
TOTAL EXPENSES 207,936 182,634
-------------- -------------
OPERATING INCOME (LOSS) 33,045 28,436
OTHER INCOME & (EXPENSES) - 834
-------------- -------------
- 834
-------------- -------------
INCOME TAXES - -
-------------- -------------
NET INCOME (LOSS) 33,045 (a) 29,270(a)
============== =============
</TABLE>
(a) Includes prior BFS operations not included in merger.
7
<PAGE>
Entourage International, Inc.
Pro forma Income Statement
for the Twelve Months Ending
September 30, 1996
<TABLE>
<CAPTION>
EII BFS (a) EII
Historical Pro forma Pro forma
<S> <C> <C> <C>
SALES
Product $1,494,864 $ 382,275 $1,877,139
Freight Income 38,532 14,226 52,758
---------- ---------- ----------
TOTAL SALES 1,533,396 396,501 1,929,897
---------- ---------- ----------
COST OF MATERIALS
Product Costs 235,510 217,329 452,839
---------- ---------- ----------
COST OF SALES 235,510 217,329 452,839
---------- ---------- ----------
GROSS MARGIN 1,297,886 179,172 1,477,058
---------- ---------- ----------
PERSONNEL COSTS
Compensation 485,742 4,800 490,542
Insurance 40,605 - 40,605
Taxes 40,748 350 41,098
---------- ---------- ----------
TOTAL PERSONNEL COSTS 567,095 5,150 572,245
---------- ---------- ----------
EXPENSES
Accounting - 250 250
Advertising 147,206 - 147,206
Automobile - - -
Bad Debt 4,437 24,311 28,748
Bank Charges 4,514 802 5,316
Commissions 65,000 65,000
Consulting Fees 7,585 7,585
Contract Labor 862 862
Credit Card Fees 21,942 21,942
Dues, Subscriptions & Fees 2,893 104 2,997
Entertainment & Meals 1,805 2,430 4,235
Freight In-Bound 15,301 2,912 18,213
Freight Out-Bound 51,877 24,844 76,721
Insurance - General 4,896 4,024 8,920
Interest Expense 1,290 3,596 4,886
Lease - Building 167,558 7,710 175,268
Lease - Equipment 1,268 2,780 4,048
Legal Expense 68,499 924 69,423
Mail Delivery 6,088 617 6,705
Management Fees - - -
Miscellaneous (5,659) 4,999 (660)
Non - Compete 100,000 100,000
</TABLE>
8
<PAGE>
Entourage International, Inc.
Pro forma Income Statement
for the Twelve Months Ending
September 30, 1996
<TABLE>
<CAPTION>
EII BFS (a) EII
Historical Pro forma Pro forma
<S> <C> <C> <C>
Office Supplies 15,692 7,100 22,792
Outside Services 7,864 113 7,977
Product Development 8,943 8,943
Promotions 3,698 3,698
Public Company Fees 1,601 1,601
Repairs & Maintenance 13,081 906 13,987
Seminar Expense 3,003 3,003
Stock Transfer Service 1,625 1,625
Taxes - State & Local 4,802 1,636 6,438
Telephone 58,476 10,722 69,198
Telemarketing Expense 64,860 64,860
Travel & Lodging 12,662 5,611 18,273
Utilities 15,552 357 15,909
Warehouse Supplies 13,755 13,755
------------- ------------ ----------
TOTAL OPERATING EXPENSES 892,976 106,748 999,724
------------- ------------ ----------
------------- ------------ ----------
TOTAL EXPENSES 1,460,071 111,898 1,571,969
------------- ------------ ----------
OPERATING INCOME (LOSS) (162,185) 67,274 (94,911)
OTHER INCOME & (EXPENSES) (37,313) 5,669 (31,644)
------------- ------------ ----------
(37,313) 5,669 (31,644)
------------- ------------ ----------
INCOME TAXES - - -
------------- ------------ ----------
NET INCOME (LOSS) (199,498) 72,943 (126,555)
============= ============ ==========
</TABLE>
(a) Does not include Revenue and Expenses from operations not included in
merger.
9
<PAGE>
Biogime Franchise Services, Inc.
Represents Moving Advertising Related Items to JCR
for the Twelve Months Ending
September 30, 1996
<TABLE>
<CAPTION>
BFS To (a) BFS
Adjusted JCR Pro forma
Historical
<S> <C> <C> <C>
SALES
Media $ 982,549 (982,549) $ -
Product 382,275 382,275
Freight Income 14,226 14,226
------------- ------------- ----------
TOTAL SALES 1,379,050 (982,549) 396,501
------------- ------------- ----------
COST OF MATERIALS
Media Costs 800,967 (800,967) -
Product Costs 217,329 217,329
------------- ------------- ----------
COST OF SALES 1,018,296 (800,967) 217,329
------------- ------------- ----------
GROSS MARGIN 360,754 (181,582) 179,172
------------- ------------- ----------
PERSONNEL COSTS
Compensation 90,927 (86,127) 4,800
Insurance 6,520 (6,520) -
Taxes 34,715 (34,365) 350
------------- ------------- ----------
TOTAL PERSONNEL COSTS 132,162 (127,012) 5,150
------------- ------------- ----------
EXPENSES
Accounting 500 (250) 250
Advertising 6,996 (6,996) -
Automobile 49,712 (49,712) -
Bad Debt 24,311 24,311
Bank Charges 1,604 (802) 802
Dues, Subscriptions & Fees 207 (104) 104
Entertainment & Meals 4,860 (2,430) 2,430
Freight In-Bound 2,912 2,912
Freight Out-Bound 24,844 24,844
Insurance - General 8,047 (4,024) 4,024
Interest Expense 7,191 (3,596) 3,596
Lease - Building 15,420 (7,710) 7,710
Lease - Equipment 5,560 (2,780) 2,780
Legal Expense 1,847 (924) 924
Mail Delivery 1,234 (617) 617
Management Fees 34,325 (34,325) -
Miscellaneous 9,998 (4,999) 4,999
Office Supplies 14,199 (7,100) 7,100
Outside Services 225 (113) 113
Repairs & Maintenance 1,811 (906) 906
</TABLE>
10
<PAGE>
Biogime Franchise Services, Inc.
Represents Moving Advertising Related Items to JCR
for the Twelve Months Ending
September 30, 1996
<TABLE>
<CAPTION>
BFS To (a) BFS
Adjusted JCR Pro forma
Historical
<S> <C> <C> <C>
Taxes - State & Local 3,271 (1,636) 1,636
Telephone 21,443 (10,722) 10,722
Travel & Lodging 11,222 (5,611) 5,611
Utilities 713 (357) 357
------------- ------------- ------------
TOTAL OPERATING EXPENSES 252,452 (145,709) 106,743
------------- ------------- ------------
------------- ------------- ------------
TOTAL EXPENSES 384,614 (272,721) 111,893
------------- ------------- ------------
OPERATING INCOME (LOSS) (23,860) 91,139 67,279
OTHER INCOME & (EXPENSES) 11,337 (5,669) 5,669
------------- ------------- ------------
11,337 (5,669) 5,669
------------- ------------- ------------
INCOME TAXES
------------- ------------- ------------
NET INCOME (LOSS) (12,523) 85,471 72,948
============= ============= ============
</TABLE>
(a) Includes Media related Sales & Expenses not included in merger.
11
<PAGE>
Entourage International, Inc.
Pro forma Balance Sheet
as of
November 30, 1996
<TABLE>
<CAPTION>
EII Biogime (a) Related EII
Assets Historical Pro forma Elimination Pro forma
<S> <C> <C> <C> <C>
CASH & CASH EQUIVALENTS
Cash $ 16,578 $ 903 $ 17,481
Accounts Receivable Trade 14,473 73,075 87,548
Allowance for Doubtful Accts. (18,000) (18,000)
Accounts Receivable Other 1,810 649 2,459
Accounts Receivable EII 175,000 (175,000)(b) -
Accounts Receivable Stores 2,968 - 2,968
------------- -------------- ----------- ------------
Total A/R 19,251 230,724 (175,000) 74,975
------------- -------------- ----------- ------------
Loan to Officers - - -
Inventory 46,915 22,307 69,222
Prepaids 2,338 - 2,338
------------ -------------- ----------- ------------
Total Other Assets 2,338 - - 2,338
------------- -------------- ----------- ------------
------------- -------------- ----------- ------------
TOTAL CURRENT ASSETS 85,082 253,934 (175,000) 164,016
------------- -------------- ----------- ------------
PROPERTY, PLANT & EQUIPMENT
Depreciable Assets 282,127 48,056 330,183
Accumulated Depreciation (254,726) (3,706) (258,432)
------------- -------------- ----------- ------------
Net PP&E 27,401 44,350 - 71,751
------------- -------------- ----------- ------------
OTHER NON-CURRENT ASSETS
Organization Costs Net of Amort. - - -
Goodwill 79,805 79,805
Deposits 13,382 7,199 20,581
------------- -------------- ----------- ------------
Total Other Assets 13,382 87,004 - 100,386
------------- -------------- ----------- ------------
------------- -------------- ----------- ------------
Total Non-Current Assets 40,783 131,354 - 172,137
------------- -------------- ----------- ------------
TOTAL ASSETS $ 125,865 $ 385,288 $(175,000) $ 336,153
============= ============== =========== ============
</TABLE>
12
<PAGE>
<TABLE>
<CAPTION>
EII Biogime Related EII
Liabilities Historical Pro forma Elimination Pro forma
<S> <C> <C> <C> <C>
CURRENT LIABILITIES
Accounts Payable Trade 173,616 79,267 252,883
Sales Tax Payable 4,967 - 4,967
Allowance for Refunds 10,500 - 10,500
Accrued Expenses 13,451 - 13,451
------------- ----------- ----------- ----------
202,534 79,267 - 281,801
------------- ----------- ----------- ----------
NOTES PAYABLE - CURRENT
Note Payable JCR - - 50,152 (b) 50,152
Notes Payable Current 53,102 104,753 157,855
Note Payable to BFS 225,152 - (225,152)(b) -
------------- ----------- ---------- ----------
Total N/P Current 278,254 104,753 (175,000) 208,007
------------- ----------- ---------- ----------
TOTAL CURRENT LIABILITIES 480,788 184,020 (175,000) 489,808
------------- ----------- ----------- ----------
Note Payable LT - 27,500 27,500
Lease Payable - 5,700 - 5,700
------------- ----------- ---------- ----------
------------- ----------- ---------- ----------
TOTAL LIABILITIES 480,788 217,220 (175,000) 523,008
------------- ----------- ---------- ----------
STOCKHOLDER'S EQUITY
Equity (354,923) 168,068 (186,855)
------------- ----------- ---------- ----------
(354,923) 168,068 - (186,855)
------------- ----------- ---------- ----------
TOTAL LIABILITIES & EQUITY $ 125,865 $ 385,288 $(175,000) $ 336,153
============= =========== ========== ==========
</TABLE>
(a) Does not include Assets and Liabilities of operations not included in
merger.
(b) Represents the elimination of $175,000 advanced to EII as per the merger
agreement, with the additional $50,152 over advanced being set up as a note due
to JCR as the remaining entity from the original BFS operation.
13
<PAGE>
Biogime Franchise Services, Inc.
Pro forma Balance Sheet
Reflecting Transfers to and from JCR
Enterprises, Inc.
as of
November 30, 1996
<TABLE>
<CAPTION>
BFS
BFS To From Related Pro forma
Assets Historical JCR JCR Elimination
<S> <C> <C> <C> <C> <C>
CASH & CASH EQUIVALENTS
Cash 903 $ 903
Accounts Receivable Trade 69,613 3,46(e) 73,075
Allowance for Doubtful Accts. (18,000) (18,000)
Accounts Receivable Other 114,991 16,157 (a) 2(e) (98,434) 649
Accounts Receivable EII 225,152 50,152 (b) 175,000
----------- -------- ---------- --------- ----------
Total A/R 391,756 66,309 3,711 (98,434) 230,724
----------- -------- ---------- --------- ----------
Loan to Officers 95,843 95,843 (c) -
Inventory - 22,307(f) 22,307
Prepaids - -
----------- --------- ---------- --------- ----------
Total Other Assets - - - - -
----------- --------- ---------- --------- ----------
----------- --------- ---------- --------- ----------
TOTAL CURRENT ASSETS 488,502 162,152 26,018 (98,434) 253,934
----------- -------- ---------- --------- ----------
PROPERTY, PLANT & EQUIPMENT
Depreciable Assets 18,887 29,169(g) 48,056
Accumulated Depreciation (3,706) - (3,706)
----------- -------- ---------- --------- ----------
Net PP&E 15,181 - 29,169 - 44,350
----------- -------- ---------- --------- ----------
OTHER NON-CURRENT ASSETS
Organization Costs Net of Amort. -
Goodwill 79,805(h) 79,805
Deposits 2,692 4,50(i) 7,199
----------- -------- ---------- --------- ----------
Total Other Assets 2,692 - 84,312 - 87,004
----------- -------- ---------- --------- ----------
----------- -------- ---------- --------- ----------
Total Non-Current Assets 17,873 - 113,481 - 131,354
----------- -------- ---------- --------- ----------
TOTAL ASSETS $ 506,375 $162,152 $ 139,499 $ (98,434) $ 385,288
=========== ======== ========== ========== ==========
</TABLE>
14
<PAGE>
Biogime Franchise Services, Inc.
Pro forma Balance Sheet
Reflecting Transfers to and from JCR Enterprises, Inc.
as of
November 30, 1996
<TABLE>
<CAPTION>
BFS To From Related BFS
Liabilities Historical JCR JCR Elimination Pro forma
<S> <C> <C> <C> <C> <C>
ACCOUNTS PAYABLE - TRADE
Accounts Payable 149,121 91,916 (d) 120,496(j) (98,434) 79,267
NOTES PAYABLE - CURRENT
Note Payable to Related Parties 159,744 (159,744) -
Notes Payable 73,250 19,003(k) 92,253
Note Payable to Officer 12,500 12,500
----------- -------- -------- ----------- --------
Total N/P Current 245,494 - 19,003 (159,744) 104,753
----------- -------- -------- ----------- --------
Note Payable LT 27,500 27,500
Lease Payable 5,700 5,700
----------- -------- -------- ----------- --------
TOTAL LIABILITIES 427,815 91,916 139,499 (258,178) 217,220
----------- -------- -------- ----------- --------
STOCKHOLDER'S EQUITY
Equity 78,560 70,236 159,744 168,068
----------- -------- -------- ----------- --------
78,560 70,236 - 159,744 168,068
----------- -------- -------- ----------- --------
TOTAL LIABILITIES & EQUITY $ 506,375 $162,152 $139,499 $ (98,434) $385,288
=========== ======== ======== =========== ========
</TABLE>
(a) Moneys due from employees staying with JCR after the merger.
(b) Represents the elimination of $175,000 advanced to EII as per the merger
agreement, with the additional $50,152 over advanced being set up as a note due
to JCR as the remaining entity from the original BFS operation.
(c) Moneys due from officers of JCR.
(d) Media related accounts payable belonging to JCR.
(e) Accounts receivable belonging to two stores acquired by BFS from JCR.
(f) Inventory belonging to two stores acquired by BFS from JCR.
(g) Equipment, Furn. & Fix. and Lease holds, net of depreciation, belonging to
two stores acquired by BFS from JCR.
(h) Goodwill paid to JCR for two retail stores.
(i) Rental Deposit on the San Diego retail store acquired by BFS.
(j) Accounts payable related to the two retail stores acquired by BFS from JCR.
(k) Note payable to JCR representing the remaining balance due to JCR for the
sale of two retail stores to BFS.
15
<PAGE>
Biogime Franchise Services, Inc.
Represents Moving Advertising Related Items to JCR
for the Two Months Ending
November 30, 1996
<TABLE>
<CAPTION>
BFS To BFS
Historical JCR (a) Pro forma
<S> <C> <C> <C>
SALES
Media $ 235,725 $ (235,725) $ -
Product 72,778 72,778
Freight Income 2,256 2,256
----------- ------------- ----------
TOTAL SALES 310,759 (235,725) 75,034
----------- ------------- ----------
COST OF MATERIALS
Media Costs 201,100 (201,100) -
Product Costs 43,185 43,185
----------- ------------- ----------
COST OF SALES 244,285 (201,100) 43,185
----------- ------------- ----------
GROSS MARGIN 66,474 (34,625) 31,849
----------- ------------- ----------
PERSONNEL COSTS
Compensation 17,543 (16,693) 850
Insurance 893 (893) -
Taxes 528 (528) -
----------- ------------- ----------
TOTAL PERSONNEL COSTS 18,964 (18,114) 850
----------- ------------- ----------
EXPENSES
Accounting - - -
Advertising - -
Automobile 6,112 (6,112) -
Bad Debt - - -
Bank Charges 228 (114) 114
Dues, Subscriptions & Fees - - -
Entertainment & Meals 564 (282) 282
Freight In-Bound 512 - 512
Freight Out-Bound 2,425 - 2,425
Insurance - General 458 (229) 229
Interest Expense 1,475 (738) 737
Lease - Building 3,599 (1,800) 1,799
Lease - Equipment 2,377 (1,189) 1,188
Mail Delivery - - -
Management Fees 6,500 (6,500) -
Miscellaneous 491 (246) 245
Office Supplies 1,485 (743) 742
Outside Services 1,632 (816) 816
Repairs & Maintenance 1,599 (800) 799
</TABLE>
16
<PAGE>
Biogime Franchise Services, Inc.
Represents Moving Advertising Related Items to JCR
for the Two Months Ending
November 30, 1996
<TABLE>
<CAPTION>
BFS To BFS
Historical JCR (a) Pro forma
<S> <C> <C> <C>
Taxes - State & Local - - -
Telephone 2,097 (1,049) 1,048
Travel & Lodging 994 (497) 497
---------- -------- ---------
TOTAL OPERATING EXPENSES 32,548 (21,115) 11,433
---------- -------- ---------
---------- -------- ---------
TOTAL EXPENSES 51,512 (39,229) 12,283
---------- -------- ---------
OPERATING INCOME (LOSS) 14,962 4,604 19,566
OTHER INCOME & (EXPENSES) - -
---------- -------- ---------
- - -
---------- -------- ---------
INCOME TAXES - -
---------- -------- ---------
NET INCOME (LOSS) 14,962 4,604 19,566
========== ======== =========
</TABLE>
(a) Includes Revenue and Expenses not included in merger.
17
<PAGE>
Entourage International, Inc.
Pro forma Income Statement
for the Two Months Ending
November 30, 1996
<TABLE>
<CAPTION>
EII BFS EII
Historical Pro forma(a) Pro forma
<S> <C> <C> <C>
SALES
Product $176,734 $ 72,778 $ 249,512
Freight Income 3,304 2,256 5,560
---------- ------------- -----------
TOTAL SALES 180,038 75,034 255,072
---------- ------------- -----------
COST OF MATERIALS
Product Costs 33,496 43,185 76,681
---------- ----------- -----------
COST OF SALES 33,496 43,185 76,681
---------- ------------- -----------
GROSS MARGIN 146,542 31,849 178,391
---------- ------------- -----------
PERSONNEL COSTS
Compensation 72,315 850 73,165
Insurance 4,900 - 4,900
Taxes 4,711 - 4,711
---------- ------------- -----------
TOTAL PERSONNEL COSTS 81,926 850 82,776
---------- ------------- -----------
EXPENSES
Advertising 11,490 - 11,490
Bad Debt 72 - 72
Bank Charges 1,097 114 1,211
Contract Labor 89 89
Credit Card Fees 2,424 2,424
Dues, Subscriptions & Fees 486 - 486
Entertainment & Meals 693 282 975
Freight In-Bound 2,786 512 3,298
Freight Out-Bound 4,941 2,425 7,366
Insurance - General 666 229 895
Interest Expense 917 737 1,654
Lease - Building 22,242 1,799 24,041
Lease - Equipment 738 1,188 1,926
Legal Expense - - -
Mail Delivery 433 - 433
Management Fees - - -
Miscellaneous 47 245 292
</TABLE>
18
<PAGE>
Entourage International, Inc.
Pro forma Income Statement
for the Two Months Ending
November 30, 1996
<TABLE>
<CAPTION>
EII BFS EII
Historical Pro forma(a) Pro forma
<S> <C> <C> <C>
Office Supplies 2,096 742 2,838
Outside Services 814 816 1,630
Product Development (787) - (787)
Public Company Fees 508 508
Repairs & Maintenance 848 799 1,647
Taxes - State & Local 218 - 218
Telephone 6,255 1,048 7,303
Travel & Lodging 927 497 1,424
Utilities 2,270 - 2,270
Warehouse Supplies 122 122
-------------- ------------- ----------
TOTAL OPERATING EXPENSES 62,392 11,433 73,825
-------------- ------------- ----------
-------------- ------------- ----------
TOTAL EXPENSES 144,318 12,283 156,601
-------------- ------------- ----------
OPERATING INCOME (LOSS) 2,224 19,566 21,790
OTHER INCOME & (EXPENSES) (1,242) - (1,242)
-------------- ------------- ----------
(1,242) - (1,242)
-------------- ------------- ----------
INCOME TAXES - - -
-------------- ------------- ----------
NET INCOME (LOSS) 982 19,566 20,548
============== ============= ==========
</TABLE>
(a) Does not include Revenue and Expenses of operations not included in merger.
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