<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K/A
Amendment No. 1 to Current Report
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934.
Date of Report (date earliest event reported): July 31, 1995
CEDAR GROUP, INC.
<TABLE>
<S> <C> <C>
Delaware 1-10372 23-2577796
- ----------------------------------- -------------------------- -------------------------------------
State or other jurisdiction of (Commission File Number) (I.R.S. Employer Identification No.)
incorporation or organization
</TABLE>
500 Rue Notre Dame
Lachine, Quebec H9S 2B2
------------------------------------------------------------
Registrant's Telephone Number: (514) 634-3550
<PAGE> 2
The undersigned Registrant hereby amends the following portion of its
current report on Form 8-K date July 31, 1995 and filed on August 14, 1995 as
set forth below:
1. Item 7 is hereby amended and restated as follows:
<TABLE>
<S> <C> <C> <C>
Item 7 Financial Statements and Exhibits
- ------- ---------------------------------------------------------------------------------------
(a) Financial statements of business acquired
Filed as part of this Amendment for Steen Contractors Limited are the financial
statements for the year ended December 31, 1994 and unaudited financial
statements for the six months period ended June 30, 1995.
(b) Unaudited pro-forma combined condensed financial statements
Filed as part of this Amendment for Cedar Group, Inc. and subsidiaries are
unaudited consolidated pro-forma financial statements for the year ended
September 30, 1994 and the nine month period ended June 30, 1995.
(c) Exhibits (referenced to Item 601 of Registration 8-K)
1. Share Purchase Agreement dated as of April 1, 1995 (already filed)
2. Term Loan Agreement dated as of Jule 31, 1995 between Cedar Group, Inc.
and BT Commercial Corporation. (already filed)
</TABLE>
2
<PAGE> 3
SIGNATURES
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.
<TABLE>
<S> <C>
CEDAR GROUP, INC.
DATED OCTOBER 12, 1995
By: /s/ Michel L. Marengere
--------------------------------------------
Michel L. Marengere
Chairman and Chief Executive Officer
</TABLE>
3
<PAGE> 4
STEEN CONTRACTORS LIMITED
CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1994 AND 1993
(CANADIAN DOLLARS)
4
<PAGE> 5
AUDITORS' REPORT
TO THE SHAREHOLDERS OF
STEEN CONTRACTORS LIMITED
We have audited the accompanying consolidated balance sheet of Steen
Contractors Limited as at December 31, 1994 and the related consolidated
statements of retained earnings, operations and cash flow for the year then
ended. These financial statements are the responsibility of the company's
management. Our responsibility is to express an opinion on these financial
statements based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform an audit to obtain
reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement presentation.
We believe that our audit provides a reasonable basis for our opinion.
In our opinion, the 1994 financial statements referred to above, present
fairly, in all material respects the consolidated financial position of the
company as at December 31, 1994 and the consolidated results of its operations
and its cash flow for the year then ended in conformity with accounting
principles generally accepted in the United States.
ABRAMOVITCH, ABRAMOVITCH, CRAWFORD, RAPPAPORT & CO.
/SIGNED/
CHARTERED ACCOUNTANTS
April 11, 1995
Montreal, Canada
5
<PAGE> 6
STEEN CONTRACTORS LIMITED
CONSOLIDATED BALANCE SHEET
AS AT DECEMBER 31, 1994 AND 1993
(CANADIAN DOLLARS)
ASSETS
<TABLE>
<CAPTION>
1994 1993
---------- ----------
<S> <C> <C>
CURRENT:
Short-term investments and deposits (Note 2).................... $ 5,339,025 $ 1,524,171
Accounts receivable, net of allowances of $1,424,653 in 1994 and
$970,623 in 1993 (Note 15).................................... 16,017,777 17,088,455
Inventories (Note 3)............................................ 2,507,017 2,551,023
Income taxes recoverable........................................ -- 710,876
Loans and sundry receivable (Notes 5 and 15).................... 258,350 38,166
Deposits and prepaid expenses................................... 126,307 146,831
Cash surrender value of life insurance.......................... 1,578,142 1,484,465
Advances to affiliated company (Note 4)......................... 143,528 133,846
----------- -----------
25,970,146 23,677,833
----------- -----------
OTHER:
Loans receivable (Note 5)....................................... 58,143 72,195
----------- -----------
INVESTMENTS (Note 6)............................................ 64 64
----------- -----------
CAPITAL ASSETS (Note 7)......................................... 342,973 420,050
----------- -----------
$26,371,326 $24,170,142
=========== ===========
</TABLE>
See accompanying notes to the consolidated financial statements
6
<PAGE> 7
STEEN CONTRACTORS LIMITED
CONSOLIDATED BALANCE SHEET
AS AT DECEMBER 31, 1994 AND 1993
(CANADIAN DOLLARS)
LIABILITIES
<TABLE>
<CAPTION>
1994 1993
---------- ----------
<S> <C> <C>
CURRENT:
Bank indebtedness (Note 8)........................................ $ 1,162,734 $ 543,010
Accounts payable and accrued liabilities.......................... 10,203,587 7,963,772
Loan payable (Note 9)............................................. -- 380,000
Income taxes payable.............................................. 460,218 --
Advances on contracts............................................. 1,405,278 1,130,318
Current portion of long-term debt (Note 10)....................... -- 39,936
Deferred income taxes (Note 11)................................... 1,232,055 2,153,692
Advances from unincorporated joint venture........................ 1,265,473 396,738
----------- -----------
15,729,345 12,607,466
----------- -----------
SHAREHOLDERS' EQUITY
CAPITAL STOCK: (Notes 12)........................................... 186,890 213,574
RETAINED EARNINGS................................................... 10,455,091 11,349,102
----------- -----------
10,641,981 11,562,676
----------- -----------
$26,371,326 $24,170,142
=========== ===========
CONTINGENCIES AND COMMITMENTS (Notes 6 and 14)......................
</TABLE>
ON BEHALF OF THE BOARD
.............................. Director
.............................. Director
See accompanying notes to the consolidated financial statements
7
<PAGE> 8
STEEN CONTRACTORS LIMITED
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
YEARS ENDED DECEMBER 31, 1994 AND 1993
(CANADIAN DOLLARS)
<TABLE>
<CAPTION>
1994 1993
---------- ----------
<S> <C> <C>
Balance, beginning of year.......................................... $11,349,102 $10,751,599
Net earnings for the year........................................... 79,305 597,503
Premium on redemption of common shares (Note 12).................... (973,316) --
----------- -----------
Balance, end of year................................................ $10,455,091 $11,349,102
=========== ===========
</TABLE>
See accompanying notes to the consolidated financial statements
8
<PAGE> 9
STEEN CONTRACTORS LIMITED
CONSOLIDATED STATEMENT OF OPERATIONS
YEARS ENDED DECEMBER 31, 1994 AND 1993
(CANADIAN DOLLARS)
<TABLE>
<CAPTION>
1994 1993
---------- ----------
<S> <C> <C>
CONTRACT REVENUE: (Note 15)......................................... $50,295,436 $55,185,599
COST OF CONTRACTS:.................................................. 46,539,069 50,529,821
----------- -----------
GROSS MARGIN........................................................ 3,756,367 4,655,778
----------- -----------
OTHER INCOME:
Hibernia Joint Venture.............................................. 2,762,086 2,181,113
Investment income................................................... 341,206 275,753
----------- -----------
3,103,292 2,456,866
----------- -----------
EXPENSES:
Selling, general and administrative................................. 6,551,861 6,008,836
Interest............................................................ 63,229 122,348
----------- -----------
6,615,090 6,131,184
----------- -----------
EARNINGS BEFORE INCOME TAXES........................................ 244,569 981,460
----------- -----------
Provision (credit) for income taxes (Note 13)
Current........................................................... 1,086,901 142,908
Deferred.......................................................... (921,637) 241,049
----------- -----------
165,264 383,957
----------- -----------
NET EARNINGS........................................................ $ 79,305 $ 597,503
=========== ===========
</TABLE>
See accompanying notes to the consolidated financial statements
9
<PAGE> 10
STEEN CONTRACTORS LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN CASH FLOW
YEARS ENDED DECEMBER 31, 1994 AND 1993
(CANADIAN DOLLARS)
<TABLE>
<CAPTION>
1994 1993
---------- ----------
<S> <C> <C>
Cash provided (used) --
OPERATING ACTIVITIES:
Net earnings for the year........................................... $ 79,305 $ 597,503
Add (deduct) items not affecting cash provided by (used in)
operating activities
Earnings from unincorporated joint venture.......................... (2,762,086) (2,181,113)
Depreciation and amortization....................................... 101,282 122,463
Deferred income taxes............................................... (921,637) 241,049
Net change in non-cash operating elements of working capital
Note 17).......................................................... 4,507,216 (2,576,998)
---------- ----------
1,004,080 (3,797,096)
---------- ----------
INVESTING ACTIVITIES:
Increase in short-term investments and deposits..................... (3,814,854) (1,524,171)
(Increase) decrease -- advances to affiliated companies............. (9,682) 942,814
Decrease in loan receivable......................................... 14,052 11,004
Drawings from unincorporated joint venture.......................... 3,630,821 3,902,259
Additions to capital assets......................................... (24,205) (48,977)
Proceeds on disposal of capital assets.............................. -- 2,100
---------- ----------
(203,868) 3,285,029
---------- ----------
FINANCING ACTIVITIES:
Increase in bank indebtedness....................................... 619,724 543,010
Redemption of common shares......................................... (1,000,000) --
Repayment of note payable........................................... (380,000) --
Payments on long-term debt.......................................... (39,936) (79,872)
---------- ----------
(800,212) 463,138
---------- ----------
DECREASE IN CASH.................................................... -- (48,929)
CASH
Beginning of year................................................... -- 48,929
---------- ----------
End of year......................................................... $ -- $ --
========== ==========
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the year for:
Interest.......................................................... $ 63,229 $ 122,348
Taxes............................................................. $ 255,000 $ 200,000
</TABLE>
See accompanying notes to the consolidated financial statements
10
<PAGE> 11
STEEN CONTRACTORS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1994 AND 1993
(CANADIAN DOLLARS)
NOTE 1 -- SIGNIFICANT ACCOUNTING POLICIES:
These financial statements have been prepared by management in accordance
with accounting principles generally accepted in the United States.
The company operates in one industry segment that being the mechanical
contractors industry.
BASIS OF CONSOLIDATION
The consolidated financial statements include the accounts of the company
(Steen) and its wholly-owned subsidiaries, Les Entrepreneurs Becker Inc./Becker
Contractors Inc. and Becker Contractors Limited (Becker Companies).
GROSS MARGIN RECOGNITION
Income is recorded on contracts on the percentage-of-completion basis.
Revenue is recorded as costs are incurred and gross margin is recognized on each
contract, based on the percentage that incurred costs bear to estimated total
costs. Provision is made for the entire amount of future estimated losses on
contracts in progress.
SHORT-TERM INVESTMENTS AND DEPOSITS
Short-term investments and deposits are stated at the lower of cost and
fair market value.
VALUATION OF INVENTORIES
Inventories are stated at the lower of cost (first-in, first-out method)
and net realizable value.
INVESTMENT IN AFFILIATED COMPANY
The company's investment in affiliated company is accounted for in the
accompanying financial statements by the equity method whereby the investment is
recorded at cost and the carrying value adjusted thereafter to include the
company's pro rata share of earnings.
INVESTMENT IN UNINCORPORATED JOINT VENTURE
The company's investment in an unincorporated joint venture is accounted
for by the equity method whereby the investment is recorded at cost and the
carrying value adjusted thereafter to include the company's pro rata share of
earnings less drawings received. The company recognizes their share of the
unincorporated joint venture's income based on the year ended January 31, 1995.
ADVANCES ON CONTRACTS
Advances on contracts include advances and billings in excess of cost and
percentage-of-profit recognized.
INCOME TAXES
The Company follows statement of Financial Accounting Standards No. 109
"Accounting for Income Taxes" which requires that income taxes be accounted for
under the liability method. Deferred taxes reflect the tax consequences on
future years of differences between the tax bases of assets and liabilities and
their financial reporting amounts. The company adopted FASB 109 at January 1,
1993 and such adoption had no significant impact on the company.
11
<PAGE> 12
STEEN CONTRACTORS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1994 AND 1993
(CANADIAN DOLLARS)
AMORTIZATION
Annual amortization rates adopted by the company are:
<TABLE>
<S> <C>
On the declining balance method:
Building..................................................... 5%
Machinery and equipment...................................... 20%
Furniture and fixtures....................................... 20%
Automobile and trucks........................................ 30%
Computer equipment........................................... 30%
</TABLE>
On the straight-line method:
Leasehold improvements -- over the term of the lease
NOTE 2 -- SHORT-TERM INVESTMENTS AND DEPOSITS:
The quoted values of these short-term investments for the years presented
approximate their cost.
NOTE 3 -- INVENTORIES:
<TABLE>
<CAPTION>
1994 1993
---------- -----------
<S> <C> <C>
Materials.................................................. $ 698,945 $ 730,012
Contracts in progress...................................... 7,437,572 32,551,515
Actual advances............................................ (5,629,500) (30,730,504)
---------- -----------
$2,507,017 $ 2,551,023
========== ===========
</TABLE>
NOTE 4 -- ADVANCES TO AFFILIATED COMPANY:
<TABLE>
<CAPTION>
1994 1993
---------- -----------
<S> <C> <C>
Air Science Corp........................................... $ 143,528 $ 133,846
========== ==========
</TABLE>
This advance is due on demand and bears interest at the prime rates.
NOTE 5 -- LOANS RECEIVABLE:
<TABLE>
<CAPTION>
1994 1993
------- -------
<S> <C> <C>
3% loan repayable in monthly instalments of $872 including
principal and interest, matures in 2001......................... $50,759 $59,219
7% loan repayable in monthly instalments of $930 plus interest,
matures 1998..................................................... 21,436 27,028
------- -------
72,195 86,247
Current portion included in loans and Sundry receivable............ 14,052 14,052
------- -------
$58,143 $72,195
======= =======
</TABLE>
12
<PAGE> 13
STEEN CONTRACTORS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1994 AND 1993
(CANADIAN DOLLARS)
NOTE 6 -- INVESTMENTS:
<TABLE>
<CAPTION>
1994 1993
------- -------
<S> <C> <C>
a) 50%-owned company:
Air Science Corp.............................................. $ 64 $ 64
======= =======
</TABLE>
Air Science Corp. is a dormant company whose only asset is cash.
b) The assets, liabilities, revenue, expenses, gross margin, and net
earnings of its unincorporated joint venture for the years ended January
31, 1995 and 1994 are as follows:
<TABLE>
<CAPTION>
1995 1994
----------- ----------
<S> <C> <C>
Assets................................................ $ 20,882,091 $24,470,784
Liabilities........................................... $ 29,318,584 $27,115,706
Revenue............................................... $125,210,278 $76,062,045
Expenses.............................................. $111,001,849 $69,442,375
Gross Margin.......................................... $ 12,828,239 $ 9,563,920
Net Earnings.......................................... $ 14,208,429 $10,619,670
</TABLE>
The company is jointly and severally liable for all the liabilities of the
joint venture. The unincorporated joint venture is a mechanical contractor and
operates primarily in Newfoundland.
NOTE 7 -- CAPITAL ASSETS:
<TABLE>
<CAPTION>
1994
---------------------------------------------------
ACCUMULATED NET BOOK
COST AMORTIZATION VALUE
--------- ---------------- ------------
<S> <C> <C> <C>
Building............................................ $ 32,583 $ 28,224 $ 4,359
Machinery and equipment............................. 1,589,329 1,458,883 130,446
Furniture and fixtures.............................. 454,096 402,428 51,668
Automobiles and trucks.............................. 151,863 137,789 14,074
Computer equipment.................................. 469,386 376,876 92,510
Leasehold improvements.............................. 187,739 137,823 49,916
---------- ---------- --------
$2,884,996 $2,542,023 $342,973
========== ========== ========
</TABLE>
<TABLE>
<CAPTION>
1993
---------------------------------------------------
ACCUMULATED NET BOOK
COST AMORTIZATION VALUE
--------- ---------------- ------------
<S> <C> <C> <C>
Building............................................ $ 32,583 $ 27,995 $ 4,588
Machinery and equipment............................. 1,588,066 1,428,336 159,730
Furniture and fixtures.............................. 454,096 389,511 64,585
Automobiles and trucks.............................. 148,858 134,740 14,118
Computer equipment.................................. 454,512 337,231 117,281
Leasehold improvements.............................. 187,739 127,991 59,748
---------- ---------- --------
$2,865,854 $2,445,804 $420,050
========== ========== ========
</TABLE>
13
<PAGE> 14
STEEN CONTRACTORS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1994 AND 1993
(CANADIAN DOLLARS)
NOTE 8 -- BANK INDEBTEDNESS:
Bank indebtedness is under an operating credit facility with the company's
bank which bears interest at the bank's prime-plus one-quarter.
As security for bank indebtedness, the company has assigned its book debts.
NOTE 9 -- LOAN PAYABLE:
<TABLE>
<CAPTION>
1994 1993
--------- ---------
<S> <C> <C>
8% demand note payable to Simpkins Holdings Limited. This loan was
fully repaid during the year.................................... $ -- $ 380,000
========= =========
</TABLE>
NOTE 10 -- LONG-TERM DEBT:
<TABLE>
<CAPTION>
1994 1993
--------- ---------
<S> <C> <C>
10% note payable to Rutnor Investment Corp., maturing June 15,
1994, repayable by equal quarterly instalments of $19,968 plus
interest. This note was fully repaid during the year............ $ -- $ 39,936
Current portion................................................... -- 39,936
--------- ---------
$ -- $ --
========= =========
</TABLE>
NOTE 11 -- DEFERRED INCOME TAXES:
The components of the deferred income tax balance consist of timing
differences between the recognition of income for accounting and tax purposes as
follows:
<TABLE>
<CAPTION>
1994 1993
--------- ---------
<S> <C> <C>
Tax deferral of income
Unincorporated joint venture.................................... $ 955,659 $1,205,386
Contract recognition............................................ 276,396 948,306
---------- ----------
$1,232,055 $2,153,692
========== ==========
</TABLE>
NOTE 12 -- CAPITAL STOCK:
Authorized without par value:
Unlimited Class "A" voting redeemable and retractable (at the amount paid
thereon)
special shares
Common shares
<TABLE>
<CAPTION>
1994 1993
--------- ---------
<S> <C> <C>
Issued and Fully Paid
102 Class "A" shares............................................ $ 102 $ 102
140 (160 - 1993) Common shares.................................. 186,788 213,472
--------- ---------
$ 186,890 $ 213,574
========= =========
</TABLE>
During the year the company redeemed 20 common shares for $1,000,000. The
stated capital of the shares has been reduced by $26,684 and the excess of
$973,316 has been charged to retained earnings.
14
<PAGE> 15
STEEN CONTRACTORS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1994 AND 1993
(CANADIAN DOLLARS)
NOTE 13 -- INCOME TAXES:
The difference between the Company's effective income tax rate and the
statutory rate on earnings from operations is reconciled below:
<TABLE>
<CAPTION>
1994 1993
--------- ---------
<S> <C> <C>
Income tax expense at statutory rate (45%).................... $ 110,056 $ 441,657
Income eligible for tax at less than statutory rate........... (54,000) (54,000)
Other......................................................... 109,208 (3,700)
--------- ---------
$ 165,264 $ 383,957
========= =========
</TABLE>
NOTE 14 -- COMMITMENTS:
a) The minimum annual rental payments for premises, payable under leases
in effect at December 31, 1994 are approximately as follows:
1995 -- $264,000
1996 -- $195,750
b) The minimum annual rental payments for leased equipment payable under
leases in effect at December 31, 1994 are approximately as follows:
1995 -- $266,000
1996 -- $203,000
1997 -- $158,000
1998 -- $ 79,000
1999 -- $ 5,000
c) Rent expense during the year amounted to $288,986; 1993 -- $318,401.
NOTE 15 -- RELATED PARTY TRANSACTION:
a) In addition to the company's share of the earnings of the
unincorporated joint venture, included in contract revenue for the
current year is approximately $390,000 (1993 -- $425,000) of charges
to the joint venture for labour and costs provided. As at
December 31, 1994, $21,043 (1993 -- $35,329) was due from the joint
venture as a result of these charges and is subject to normal trade
terms. The amount is included in accounts receivable.
b) The company pays rent to affiliated companies for premises. During
1994, the total amounted to $229,500 (1993 -- $261,000).
c) The company's advances from the unincorporated joint venture are
non-interest bearing.
d) Included in loans and sundry receivable is an amount due from an
officer of the company in the amount of $225,000. Such amount is due
on demand and is non-interest bearing.
NOTE 16 -- CONCENTRATION OF CREDIT RISK:
Concentrations of credit risk with respect to trade receivables are limited
due to the large number of customers comprising the company's customer base and
the geographic dispersion of customers amongst Ontario, Quebec and the Maritime
provinces of Canada. The company does not require collateral from its customers.
As at December 31, 1994 and 1993, the company had no significant concentrations
of credit risk.
15
<PAGE> 16
STEEN CONTRACTORS LIMITED
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
YEARS ENDED DECEMBER 31, 1994 AND 1993
(CANADIAN DOLLARS)
NOTE 17 -- NET CHANGE IN NON-CASH OPERATING ELEMENTS OF WORKING CAPITAL:
<TABLE>
<CAPTION>
1994 1993
--------- ----------
<S> <C> <C>
(Increase) decrease in accounts receivable....................... $1,070,678 $ (874,523)
Decrease in inventories.......................................... 44,006 722,240
(Increase) in loans and sundry receivable........................ (220,184) (348)
(Increase) decrease in prepaid expenses.......................... 20,524 (24,580)
(Increase) in cash surrender value of life insurance............. (93,677) (94,232)
(Decrease) increase in accounts payable.......................... 2,239,815 (1,963,063)
(Decrease) increase in income taxes payable...................... 1,171,094 (466,589)
Increase in advances on contracts................................ 274,960 124,097
---------- -----------
$4,507,216 $(2,576,998)
========== ===========
</TABLE>
16
<PAGE> 17
STEEN CONTRACTORS LIMITED
INTERIM CONSOLIDATED FINANCIAL STATEMENTS
AS AT JUNE 30, 1995
UNAUDITED
(CANADIAN DOLLARS)
17
<PAGE> 18
STEEN CONTRACTORS LIMITED
INTERIM CONSOLIDATED BALANCE SHEET
AS AT JUNE 30, 1995
UNAUDITED
(CANADIAN DOLLARS)
ASSETS
<TABLE>
<S> <C>
CURRENT:
Short-term investments and deposits........................................... $ 6,257,435
Accounts receivable........................................................... 20,026,855
Loans receivable.............................................................. 30,896
Inventories................................................................... 2,210,923
Deposit and prepaid expenses.................................................. 236,277
Cash surrender value of life insurance........................................ 1,531,344
Advances to affiliated company................................................ 143,528
-----------
30,437,258
-----------
INVESTMENT IN AFFILIATED COMPANY................................................ 64
-----------
OTHER:
Loans receivable.............................................................. 51,117
-----------
FIXED, At Cost.................................................................. 358,932
-----------
$30,847,371
===========
</TABLE>
18
<PAGE> 19
STEEN CONTRACTORS LIMITED
INTERIM CONSOLIDATED BALANCE SHEET
AS AT JUNE 30, 1995
UNAUDITED
(CANADIAN DOLLARS)
LIABILITIES
<TABLE>
<S> <C>
CURRENT:
Bank indebtedness............................................................... $ 674,745
Accounts payable and accrued liabilities........................................ 6,948,475
Advances on contracts........................................................... 6,461,761
Income taxes payable............................................................ 135,582
Deferred income taxes........................................................... 1,174,579
Advances from unincorporated joint venture...................................... 4,345,415
-----------
19,740,557
-----------
SHAREHOLDERS' EQUITY
CAPITAL STOCK..................................................................... 186,890
RETAINED EARNINGS................................................................. 10,919,924
-----------
11,106,814
-----------
$30,847,371
===========
</TABLE>
APPROVED ON BEHALF OF THE BOARD OF DIRECTORS
..............................................
..............................................
19
<PAGE> 20
STEEN CONTRACTORS LIMITED
INTERIM CONSOLIDATED STATEMENT OF RETAINED EARNINGS
FOR THE SIX MONTHS ENDED JUNE 30, 1995
UNAUDITED
(CANADIAN DOLLARS)
<TABLE>
<S> <C>
Balance, beginning of year
As previously reported........................................................ $10,455,091
Adjustment to cash surrender
Value of life insurance....................................................... (149,772)
-----------
As restated................................................................... 10,305,319
Earnings for the period......................................................... 614,605
-----------
Balance, end of period.......................................................... $10,919,924
===========
</TABLE>
20
<PAGE> 21
STEEN CONTRACTORS LIMITED
INTERIM CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED JUNE 30, 1995
UNAUDITED
(CANADIAN DOLLARS)
<TABLE>
<S> <C>
CONTRACT REVENUE................................................................ $38,887,105
COST OF CONTRACTS............................................................... 34,569,452
-----------
GROSS MARGIN.................................................................... 4,317,653
-----------
OTHER INCOME (LOSS):
Hibernia Joint Venture........................................................ (29,965)
Investment income............................................................. 326,105
-----------
296,140
-----------
EXPENSES:
Selling, general and administrative........................................... 3,447,633
Interest...................................................................... 21,179
-----------
3,468,812
-----------
EARNINGS BEFORE INCOME TAXES.................................................... 1,144,981
-----------
Provision (credit) for income taxes
Current....................................................................... 587,853
Deferred...................................................................... (57,477)
-----------
530,376
-----------
EARNINGS FOR THE PERIOD......................................................... $ 614,605
===========
</TABLE>
21
<PAGE> 22
STEEN CONTRACTORS LIMITED
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN CASH FLOW
FOR THE SIX MONTHS ENDED JUNE 30, 1995
UNAUDITED
(CANADIAN DOLLARS)
<TABLE>
<S> <C>
Cash provided (used) --
OPERATING ACTIVITIES:
Earnings for the period....................................................... $ 614,605
Add (deduct) items not affecting cash provided by (used in) operating
activities.................................................................
Loss from unincorporated joint venture........................................ 29,965
Depreciation and amortization................................................. 48,300
Deferred income taxes......................................................... (57,477)
Net change in non-cash operating elements of working capital.................. (2,071,966)
Adjustment to cash surrender value of life insurance.......................... (149,772)
-----------
(1,586,345)
===========
INVESTING ACTIVITIES:
Increase in short-term investments and deposits............................... (918,410)
Decrease in loans receivable.................................................. 7,026
Drawings from unincorporated joint venture.................................... 3,049,977
Additions to fixed assets..................................................... (64,259)
-----------
2,074,334
-----------
FINANCING ACTIVITIES:
Decrease in bank indebtedness................................................. (487,989)
-----------
INCREASE IN CASH................................................................ --
CASH
Beginning of period........................................................... --
-----------
End of period................................................................. $ --
===========
SUPPLEMENTAL CASH FLOW INFORMATION
Cash paid during the year for:
Interest................................................................... $ 21,179
Taxes...................................................................... $ 374,000
</TABLE>
22
<PAGE> 23
CEDAR GROUP, INC.
UNAUDITED CONSOLIDATED PROFORMA STATEMENT OF OPERATIONS
9 MONTHS ENDED JUNE 30, 1995
(IN THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
STEEN
12 MONTHS STEEN STEEN STEEN STEEN
DEC. 9 MONTHS 3 MONTHS 3 MONTHS 6 MONTHS
31/94 SEPT. 30/94 DEC. 31/94 MARCH 31/95 MARCH 31/95
($CDN) ($CDN) ($CDN) ($CDN) ($CDN) F/X
--------- ------------- ------------- ------------- ------------- ------
<S> <C> <C> <C> <C> <C> <C>
1.3874
SALES.................... 50,295 36,232 14,063 16,056 30,119
-------- -------- -------- -------- --------
COST OF SALES............ (46,539) (32,968) (13,571) (15,228) (28,799)
SELLING, GENERAL AND
ADMINISTRATIVE
EXPENSES................ (6,552) (4,347) (2,205) (2,227) (4,432)
-------- -------- -------- -------- --------
(53,091) (37,315) (15,776) (17,455) (33,231)
-------- -------- -------- -------- --------
(2,796) (1,083) (1,713) (1,399) (3,112)
INCOME FROM OPERATIONS OF
JOINT VENTURE........... 2,131 1,997 134 475 609
INTEREST INCOME
(EXPENSES), NET......... 278 215 63 156 219
OTHER INCOME............. 631 447 184 177 361
-------- -------- -------- -------- --------
NET INCOME FROM
OPERATIONS BEFORE TAXES
AND MINORITY INTEREST... 244 1,576 (1,332) (591) (1,923)
-------- -------- -------- -------- --------
INCOME TAXES
Current................. (1,087) (1,502) 415 (467) (52)
Deferred................ 921 813 108 704 812
-------- -------- -------- -------- --------
(166) (689) 523 237 760
-------- -------- -------- -------- --------
NET INCOME BEFORE
MINORITY INTEREST....... 78 887 (809) (354) (1,163)
MINORITY INTEREST --
DIVIDENDS PREFF.
SHARES.................. 0 0 0 0 0
MINORITY INTEREST --
COMMON SHARES........... (20) (222) 202 89 291
-------- -------- -------- -------- --------
NET INCOME............... 58 665 (607) (265) (872)
======== ======== ======== ======== ========
WEIGHTED AVERAGE SHARES
OUTSTANDING.............
INCOME (LOSS) PER COMMON
SHARES..................
<CAPTION>
CEDAR GROUP, INC.
STEEN PROFORMA
6 MONTHS CEDAR 10Q CONSOLIDATED
MARCH JUNE 9 MONTHS
31/95 30/95 JUNE 30/95
($U.S.) ($U.S.) ($U.S.)
--------- --------- -----------------
<S> <C> <C> <C>
NOTE 1
SALES.................... 21,709 100,326 122,035
---------- ---------- ----------
COST OF SALES............ (20,758) (85,920) (106,678)
SELLING, GENERAL AND
ADMINISTRATIVE
EXPENSES................ (3,194) (10,093) (13,287)
---------- ---------- ----------
(23,952) (96,013) (119,965)
---------- ---------- ----------
(2,243) 4,313 2,070
INCOME FROM OPERATIONS OF
JOINT VENTURE........... 439 817 1,256
INTEREST INCOME
(EXPENSES), NET......... 158 145 303
OTHER INCOME............. 260 1,740 2,000
---------- ---------- ----------
NET INCOME FROM
OPERATIONS BEFORE TAXES
AND MINORITY INTEREST... (1,386) 7,015 5,629
---------- ---------- ----------
INCOME TAXES
Current................. (37) (1,729) (1,766)
Deferred................ 585 1 586
---------- ---------- ----------
548 (1,728) (1,180)
---------- ---------- ----------
NET INCOME BEFORE
MINORITY INTEREST....... (838) 5,287 4,449
MINORITY INTEREST --
DIVIDENDS PREFF.
SHARES.................. 0 (70) (70)
MINORITY INTEREST --
COMMON SHARES........... 210 (159) 51
---------- ---------- ----------
NET INCOME............... (628) 5,058 4,430
========== ========== ==========
WEIGHTED AVERAGE SHARES
OUTSTANDING............. 14,245,678 14,245,678 14,245,678
========== ========== ==========
INCOME (LOSS) PER COMMON
SHARES.................. (0.04) 0.35 0.31
========== ========== ==========
</TABLE>
NOTE 1: CEDAR 10Q TO JUNE 30, 1995 INCLUDED STEEN RESULTS EFFECTIVE APRIL 1,
1995
23
<PAGE> 24
CEDAR GROUP, INC.
UNAUDITED CONSOLIDATED PROFORMA STATEMENT OF OPERATIONS
12 MONTHS ENDED SEPTEMBER 30, 1994
(IN THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
STEEN STEEN STEEN STEEN STEEN
12 MONTHS 9 MONTHS 3 MONTHS 9 MONTHS 12 MONTHS
DEC. 31/93 SEPT. 30/93 DEC. 31/93 SEPT. 30/94 SEPT. 30/94
($CDN) ($CDN) ($CDN) ($CDN) ($CDN) F/X
------------ ------------- ------------- ------------- ------------- ------
<S> <C> <C> <C> <C> <C> <C>
1,3549
SALES......................... 55,186 37,001 18,185 36,232 54,417
-------- -------- -------- -------- --------
COST OF SALES................. (50,530) (33,259) (17,271) (32,969) (50,240)
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES...... (6,009) (4,542) (1,467) (4,347) (5,814)
-------- -------- -------- -------- --------
(56,539) (37,801) (18,738) (37,316) (56,054)
-------- -------- -------- -------- --------
(1,353) (800) (553) (1,084) (1,637)
INCOME FROM OPERATIONS OF
JOINT VENTURE................ 1,593 1,740 (147) 1,593 1,446
INTEREST INCOME (EXPENSES),
NET.......................... 154 234 (80) 215 135
OTHER INCOME.................. 588 471 117 447 564
-------- -------- -------- -------- --------
NET INCOME FROM OPERATIONS
BEFORE TAXES AND MINORITY
INTEREST..................... 982 1,645 (663) 1,171 508
-------- -------- -------- -------- --------
INCOME TAXES
Current...................... (143) (219) 76 (1,502) (1,426)
Deferred..................... (241) (450) 209 995 1,204
-------- -------- -------- -------- --------
(384) (669) 285 (507) (222)
-------- -------- -------- -------- --------
NET INCOME BEFORE MINORITY
INTEREST..................... 598 976 (378) 664 286
MINORITY INTEREST -- DIVIDEND
PREFERENCE SHARES............ 0 0 0 0 0
MINORITY INTEREST -- COMMON
SHARES....................... (150) (244) 94 (166) (72)
-------- -------- -------- -------- --------
NET INCOME.................... 448 732 (284) 498 214
======== ======== ======== ======== ========
WEIGHTED AVERAGE SHARES
OUTSTANDING..................
INCOME (LOSS) PER COMMON
SHARES.......................
<CAPTION>
CEDAR GROUP, INC.
PROFORMA
CONSOLIDATED
12 MONTHS CEDAR 10K 12 MONTHS
SEPT. 30/94 SEPT. 30/94 SEPT. 30/94
($U.S.) ($U.S.) ($U.S.)
------------- ------------- -----------------
<S> <C> <C> <C>
SALES......................... 40,163 67,959 108,122
--------- --------- ---------
COST OF SALES................. (37,080) (59,295) (96,375)
SELLING, GENERAL AND
ADMINISTRATIVE EXPENSES...... (4,291) (8,107) (12,398)
--------- --------- ---------
(41,371) (67,402) (108,773)
--------- --------- ---------
(1,208) 557 (651)
INCOME FROM OPERATIONS OF
JOINT VENTURE................ 1,067 0 1,067
INTEREST INCOME (EXPENSES),
NET.......................... 100 (341) (241)
OTHER INCOME.................. 416 767 1,183
--------- --------- ---------
NET INCOME FROM OPERATIONS
BEFORE TAXES AND MINORITY
INTEREST..................... 375 983 1,358
--------- --------- ---------
INCOME TAXES
Current...................... (1,052) (70) (1,122)
Deferred..................... 888 (230) 658
--------- --------- ---------
(164) (300) (464)
--------- --------- ---------
NET INCOME BEFORE MINORITY
INTEREST..................... 211 683 894
MINORITY INTEREST -- DIVIDEND
PREFERENCE SHARES............ 0 (248) (248)
MINORITY INTEREST -- COMMON
SHARES....................... (53) (19) (72)
--------- --------- ---------
NET INCOME.................... 158 416 574
========= ========= =========
WEIGHTED AVERAGE SHARES
OUTSTANDING.................. 8,912,000 8,912,000 8,912,000
========= ========= =========
INCOME (LOSS) PER COMMON
SHARES....................... 0.02 0.05 0.07
========= ========= =========
</TABLE>
24
