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Exhibit 99
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Stockholders of CERBCO, Inc.
We have audited the consolidated financial statements of CERBCO, Inc. and
subsidiaries as of June 30, 2000 and 1999, and for each of the three years in
the period ended June 30, 2000, and have issued our report thereon dated
September 22, 2000; such financial statements and report are included in this
Annual Report on Form 10-K. Our audits were conducted for the purpose of
forming an opinion on the basic consolidated financial statements taken as a
whole. The consolidating schedules as of, and for the year ended June 30,2000
are presented for the purpose of additional analysis of the basic consolidated
financial statements rather than to present the financial position and results
of operations of the individual companies, and are not a required part of the
basic consolidated financial statements. These schedules are the
responsibility of the Company's management. Such schedules have been subjected
to the auditing procedures applied in our audits of the basic consolidated
financial statements and, in our opinion, are fairly stated in all material
respects in relation to the basic consolidated financial statements taken as a
whole.
/s/ DELOITTE & TOUCHE LLP
DELOITTE & TOUCHE LLP
McLean, Virginia
September 22, 2000
<PAGE>
Exhibit 99
<TABLE>
CERBCO, Inc.
CONSOLIDATING SCHEDULE - STATEMENT OF OPERATIONS INFORMATION
YEAR ENDED JUNE 30, 2000
<CAPTION>
CERBCO, Inc. CERBCO, Inc. Insituform East,
Consolidated Eliminations Unconsolidated Incorporated
------------------ --------------- ----------------- -----------------
<S> <C> <C> <C> <C>
Sales $22,421,875 $ $ 0 $22,421,875
0
------------------ --------------- ----------------- -----------------
Costs and Expenses:
Cost of sales 21,314,391 0 0 21,314,391
Selling, general and administrative expenses 4,815,439 0 751,671 4,063,768
------------------ --------------- ----------------- -----------------
Total Costs and Expenses 26,129,830 0 751,671 25,378,159
------------------ --------------- ----------------- -----------------
Operating Loss (3,707,955) 0 (751,671) (2,956,284)
Investment Income 696,015 (A) (322,900) 971,903 47,012
Interest Expense (21,473) (A) 322,900 0 (344,373)
Other Income - net 998,152 0 744,702 253,450
------------------ --------------- ----------------- -----------------
Earnings (Loss) Before Non-Owned Interests
and Income Taxes (2,035,261) 0 964,934 (3,000,195)
Non-Owned Interest in Pretax Loss of
Midsouth Partners 19,889 0 0 19,889
------------------ --------------- ----------------- -----------------
Earnings (Loss) Before Non-Owned Interests in
Insituform East and Income Taxes (2,015,372) 0 964,934 (2,980,306)
Provision (Credit) for Income Taxes 6,000 0 225,000 (219,000)
------------------ --------------- ----------------- -----------------
Earnings (Loss) Before Non-Owned Interests in
Insituform East (2,021,372) 0 739,934 (2,761,306)
Non-Owned Interests in Loss of Insituform East 1,678,175 (B) 1,678,175 0 0
------------------ --------------- ----------------- -----------------
NET EARNINGS (LOSS) $ (343,197) (D) $1,678,175 $739,934 $(2,761,306)
================== =============== ================= =================
</TABLE>
<PAGE>
Exhibit 99
<TABLE>
CERBCO, Inc.
CONSOLIDATING SCHEDULE - BALANCE SHEET INFORMATION
JUNE 30, 2000
<CAPTION>
CERBCO, Inc. CERBCO, Inc. Insituform East,
Consolidated Eliminations Unconsolidated Incorporated
-------------- -------------- -------------- --------------
ASSETS
Current Assets:
<S> <C> <C> <C> <C>
Cash and cash equivalents $ 2,344,077 $ $1,772,203 $ 571,874
0
Marketable securities 9,844,593 0 9,844,593 0
Accounts receivable 6,294,655 0 833,218 5,461,437
Inventories 1,421,104 0 0 1,421,104
Prepaid and refundable taxes 22,895 0 0 22,895
Prepaid expenses and other 204,381 0 29,371 175,010
-------------- -------------- -------------- --------------
TOTAL CURRENT ASSETS 20,131,705 0 12,479,385 7,652,320
Investment in and Advances to Subsidiary:
Investment in subsidiaries 0 (C) (7,222,493) 7,222,493 0
Intercompany receivables and payables 0 0 3,932,044 (3,932,044)
Property, Plant and Equipment - net of
accumulated depreciation 10,308,637 0 77,005 10,231,632
Other Assets:
Excess of acquisition cost over value of net
assets acquired - net 1,618,629 (C) 1,618,629 0 0
Cash surrender value of life insurance 2,387,287 0 2,221,232 166,055
Marketable securities 2,231,052 0 2,231,052 0
Deposits and other 60,056 0 44,489 15,567
-------------- -------------- -------------- --------------
TOTAL ASSETS $36,737,366 $(5,603,864) $28,207,700 $14,133,530
============== ============== ============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY
Current Liabilities:
Accounts payable and accrued liabilities $2,961,927 $ $ 534,958 $ 2,426,969
0
Income taxes payable 1,271,708 0 1,261,708 10,000
Current portion of capital lease obligations 30,177 0 0 30,177
--------------
-------------- -------------- --------------
TOTAL CURRENT LIABILITIES 4,263,812 0 1,796,666 2,467,146
-------------- -------------- -------------- --------------
Long-Term Liabilities:
Accrued SERP liability 1,099,720 0 1,000,967 98,753
Capital lease obligations 42,584 0 0 42,584
-------------- -------------- -------------- --------------
TOTAL LONG-TERM LIABILITIES 1,142,304 0 1,000,967 141,337
-------------- -------------- --------------
-------------- -------------- -------------- --------------
TOTAL LIABILITIES 5,406,116 0 2,797,633 2,608,483
-------------- -------------- -------------- --------------
Non-Owned Interests: 7,004,314 (B)(C) 7,004,314 0 0
-------------- -------------- -------------- --------------
Stockholders' Equity:
Common stock 118,947 (C) (175,486) 118,947 175,486
Class B stock 29,348 (C) (11,904) 29,348 11,904
Additional paid-in capital 7,527,278 (C) (4,000,424) 7,527,278 4,000,424
Retained earnings 16,651,363 (C)(D) (9,609,977) 17,734,494 8,526,846
Treasury stock 0 (C) 1,189,613 0 (1,189,613)
-------------- -------------- -------------- --------------
TOTAL STOCKHOLDERS' EQUITY 24,326,936 (12,608,178) 25,410,067 11,525,047
-------------- -------------- -------------- --------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $36,737,366 $(5,603,864) $28,207,700 $14,133,530
============== ============== ============== ==============
</TABLE>
<PAGE>
Exhibit 99
<TABLE>
CERBCO, Inc.
CONSOLIDATING ELIMINATION ENTRIES
JUNE 30, 2000
<CAPTION>
(A)
Investment income
<S> <C> <C>
Interest expense $322,900
To eliminate interest expense paid by Insituform East to $322,900
CERBCO in 2000.
(B)
Non-owned interests $1,678,175
Non-owned interests in loss of subsidiary $1,678,175
To record non-owned interests in loss of Insituform East in 2000.
(C)
Common stock $175,486
Class B stock 11,904
Additional paid-in capital 4,000,424
Retained earnings 11,288,152
Excess of acquisition cost over value of net assets acquired 1,618,629
Treasury stock $1,189,613
Non-owned interests 8,682,489
Investment in subsidiary 7,222,493
To eliminate investment in Insituform East at June 30, 2000.
(D)
Current year earnings adjustments $1,678,175
Retained earnings $1,678,175
To close out impact of eliminating entries on statement of operations for 2000.
</TABLE>
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