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Previous: STEINWAY MUSICAL INSTRUMENTS INC, 8-K, EX-99.1, 2000-11-09 |
Next: STEINWAY MUSICAL INSTRUMENTS INC, 8-K, EX-99.3, 2000-11-09 |
<PAGE>
EXHIBIT 99.2
UNITED MUSICAL INSTRUMENTS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In Thousands)
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended June 30,
---------------------------
2000 1999
----------- -----------
<S> <C> <C>
Sales $ 33,930 $ 30,208
Cost of sales 22,763 21,158
----------- -----------
Gross profit 11,167 9,050
Operating expenses 6,755 6,333
----------- -----------
Income from operations 4,412 2,717
Other (income) expense, net 1,511 1,072
----------- -----------
Income before income taxes 2,901 1,645
Provision for income taxes 1,377 874
----------- -----------
Net income $ 1,524 $ 771
=========== ===========
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE>
UNITED MUSICAL INSTRUMENTS HOLDINGS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands)
(Unaudited)
<TABLE>
<CAPTION>
June 30, 2000
-------------
<S> <C>
ASSETS
Current assets:
Cash $ 649
Accounts and notes receivable, net of allowance
for bad debts of $2,291 40,521
Inventories 29,520
Prepaid expenses 119
-------
Total current assets 70,809
Property, plant and equipment, net of accumulated
depreciation of $14,007 9,828
Other assets 727
-------
TOTAL ASSETS $81,364
=======
LIABILITIES AND SHAREHOLDER'S EQUITY
Current liabilities:
Notes payable $28,893
Accounts payable 4,122
Other current liabilities 4,986
-------
Total current liabilities 38,001
Long-term debt 26,127
Deferred tax liabilities 1,565
Other liabilities 596
-------
Total liabilities 66,289
-------
Shareholder's equity:
Common stock 1
Retained earnings 14,740
Accumulated other comprehensive income 334
-------
Total shareholder's equity 15,075
-------
TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY $81,364
=======
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE>
UNITED MUSICAL INSTRUMENTS HOLDINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
<TABLE>
<CAPTION>
Six Months Ended June 30,
-------------------------
2000 1999
------- -------
<S> <C> <C>
Net income $ 1,524 $ 771
Adjustments to reconcile net income
to cash flows from operating activities
Depreciation 824 794
Changes in operating assets and liabilities:
Accounts receivable (4,354) (3,961)
Inventories (1,791) (1,084)
Prepaid expenses (20) (218)
Refundable income taxes -- 1,053
Accounts payable 1,974 1,523
Other current liabilities (593) 1,985
------- -------
Cash flows from operating activities (2,436) 863
Cash flows from investing activities:
Capital expenditures (348) (862)
Increase in other assets 4 35
Decrease in other liabilities (8) (58)
------- -------
Cash flows from investing activities (352) (885)
Cash flows from financing activities:
Net borrowings (repayments) under
lines of credit 2,469 (1,074)
Proceeds from issuance of debt -- 1,296
Repayments of long-term debt (149) --
------- -------
Cash flows from financing activities 2,320 222
Effect of foreign exchange rate changes on cash 226 (9)
Increase (decrease) in cash (242) 191
Cash, beginning of period 891 1,350
------- -------
Cash, end of period $ 649 $ 1,541
======= =======
Supplemental Cash Flow Information
Interest paid $ 2,082 $ 291
======= =======
Taxes paid $ 1,959 $ 209
======= =======
</TABLE>
See notes to condensed consolidated financial statements.
<PAGE>
UNITED MUSICAL INSTRUMENTS HOLDINGS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
JUNE 30, 2000
(In Thousands)
(Unaudited)
(1) Basis of Presentation
The accompanying condensed financial statements of United Musical
Instruments Holdings, Inc. and subsidiaries as of June 30, 2000 and for the six
month periods ended June 30, 2000 and 1999 are unaudited. In the opinion of
management, these statements have been prepared on the same basis as the audited
consolidated financial statements as of and for the year ended December 31,
1999, and include all adjustments which are of a normal and recurring nature,
necessary for the fair presentation of financial position, results of operations
and cash flows for the interim period. The results of operations for the six
month period ended June 30, 2000 are not necessarily indicative of the results
that may be expected for the entire year. The condensed consolidated financial
statements should be read in conjunction with the consolidated financial
statements and notes thereto for the year ended December 31, 1999.
(2) Significant Accounting Policies
PRINCIPLES OF CONSOLIDATION - The consolidated financial statements include
the accounts of United Musical Instruments Holdings, Inc. and its wholly-owned
subsidiaries. All significant intercompany accounts and transactions have been
eliminated.
COMPREHENSIVE INCOME - Other comprehensive income is comprised of foreign
currency translation adjustments. Total comprehensive income for the six month
periods ended June 30 2000 and 1999 is as follows:
<TABLE>
<CAPTION>
June 30,
--------------------
2000 1999
------- -------
<S> <C> <C>
Net income $ 1,524 $ 771
Other comprehensive loss (147) (90)
------- -------
Total comprehensive income $ 1,377 $ 681
======= =======
</TABLE>
(3) Inventories
Inventories consist of the following:
<TABLE>
<S> <C>
Raw materials $ 4,390
Work in process 11,449
Finished goods 16,854
--------
Total inventories at FIFO 32,693
LIFO reserve (3,173)
--------
$ 29,520
========
</TABLE>
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