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As Of Filer Filing For·On·As Docs:Size Issuer Agent 1/16/07 Brickman Group Ltd 8-K/A:9 10/31/06 4:264K RR Donnelley/FA |
Document/Exhibit Description Pages Size
1: 8-K/A The Brickman Group Ltd--Form 8-K/A HTML 20K
2: EX-99.1 Audited Financial Statement HTML 71K
3: EX-99.2 Unaudited Condensed Financial Statements HTML 59K
4: EX-99.3 Unaudited Condensed Combined Pro Forma Financial HTML 90K
Statements
| Unaudited condensed combined pro forma financial statements |
Exhibit 99.3
THE BRICKMAN GROUP, LTD.
UNAUDITED CONDENSED COMBINED PRO FORMA FINANCIAL STATEMENTS
The following unaudited condensed combined pro forma financial statements have been prepared to give effect to the acquisition of substantially all of the assets of Groundmasters, Inc. by a wholly-owned subsidiary of The Brickman Group, Ltd., which occurred on October 31, 2006 (the “Groundmasters Acquisition”).
The unaudited condensed combined pro forma balance sheet as of September 30, 2006 gives effect to the Groundmasters Acquisition as if it occurred on September 30, 2006. The unaudited condensed Combined pro forma statements of operations for the nine months ended September 30, 2006 and the year ended December 31, 2005 give effect to the Groundmasters Acquisition as if it occurred at the beginning of each period presented.
The unaudited condensed combined pro forma statements of operations combine the historical unaudited and audited consolidated statements of operations for The Brickman Group, Ltd. for the nine months ended September 30, 2006 and the year ended December 31, 2005, respectively, with Groundmasters, Inc.’s historical unaudited and audited consolidated statements of operations for the nine months ended September 30, 2006 and the year ended December 31, 2005, respectively. The unaudited condensed combined pro forma balance sheet combines The Brickman Group, Ltd.’s historical unaudited consolidated balance sheet as of September 30, 2006 with Groundmasters, Inc.’s historical unaudited consolidated balance sheet as of September 30, 2006.
The unaudited pro forma financial statements should not be considered indicative of the actual results that would have been achieved had the Groundmasters Acquisition been completed as of the dates indicated and do not purport to indicate the balance sheet data or results of operations as of any future date or any future period. The unaudited pro forma financial information should be read in conjunction with the accompanying notes thereto.
THE BRICKMAN GROUP, LTD.
CONDENSED COMBINED PRO FORMA BALANCE SHEET
As of September 30, 2006
(dollars in thousands except for share data)
| Historical | Pro forma adjustments |
Pro forma Combined |
|||||||||||||
| THE BRICKMAN GROUP, LTD. |
GROUNDMASTERS, INC. |
||||||||||||||
| ASSETS | |||||||||||||||
| Current assets: |
|||||||||||||||
| Cash and cash equivalents |
$ | 9,954 | $ | 865 | $ | (8,615 | )(a) | $ | 2,204 | ||||||
| Accounts receivable, net of allowance for doubtful accounts |
47,391 | 2,956 | — | 50,347 | |||||||||||
| Unbilled revenue |
28,793 | 289 | — | 29,082 | |||||||||||
| Deferred tax asset |
9,001 | — | — | 9,001 | |||||||||||
| Other current assets |
3,363 | 1,238 | (987 | )(b) | 3,614 | ||||||||||
| Total current assets |
98,502 | 5,348 | (9,602 | ) | 94,248 | ||||||||||
| Property and equipment, net of accumulated depreciation |
43,571 | 4,082 | (762 | )(c) | 46,891 | ||||||||||
| Deferred tax asset |
4,541 | — | — | 4,541 | |||||||||||
| Deferred charges, net of accumulated amortization |
4,314 | — | — | 4,314 | |||||||||||
| Intangible assets, net of accumulated amortization |
60,363 | 13 | 12,152 | (b),(c) | 72,528 | ||||||||||
| Goodwill |
41,666 | — | 35,150 | (c) | 76,816 | ||||||||||
| Restricted investments and other assets |
2,996 | — | — | 2,996 | |||||||||||
| Total |
$ | 255,953 | $ | 9,443 | $ | 36,938 | $ | 302,334 | |||||||
| LIABILITIES AND SHAREHOLDER’S EQUITY | |||||||||||||||
| Current liabilities: |
|||||||||||||||
| Accounts payable |
$ | 13,070 | $ | 385 | $ | — | $ | 13,455 | |||||||
| Deferred revenue |
8,490 | 477 | — | 8,967 | |||||||||||
| Revolving credit |
4,000 | — | 40,000 | (a),(b) | 44,000 | ||||||||||
| Long-term debt - current portion |
8,864 | 1,474 | (1,474 | )(b) | 8,864 | ||||||||||
| Accrued interest |
5,147 | — | — | 5,147 | |||||||||||
| Accrued expenses |
33,619 | 274 | 245 | (c) | 34,138 | ||||||||||
| Total current liabilities |
73,190 | 2,610 | 38,771 | 114,577 | |||||||||||
| Long-term debt and other liabilities |
|||||||||||||||
| Long-term debt |
163,738 | 1,780 | 3,220 | (b),(c) | 168,738 | ||||||||||
| Other liabilities |
3,942 | — | — | 3,942 | |||||||||||
| Total liabilities |
240,870 | 4,390 | 41,991 | 287,251 | |||||||||||
| Commitments and contingencies |
|||||||||||||||
| Shareholder’s equity: |
|||||||||||||||
| Common stock |
6 | — | — | 6 | |||||||||||
| Paid-in capital |
190,947 | 2 | (2 | )(b) | 190,947 | ||||||||||
| Retained earnings |
15,130 | 5,051 | (5,051 | )(b) | 15,130 | ||||||||||
| Continuing shareholders’ basis adjustment |
(191,000 | ) | (191,000 | ) | |||||||||||
| Total shareholder’s equity |
15,083 | 5,053 | (5,053 | ) | 15,083 | ||||||||||
| Total liabilities and shareholder’s equity |
$ | 255,953 | $ | 9,443 | $ | 36,938 | $ | 302,334 | |||||||
See the accompanying notes to the unaudited condensed combined pro forma financial statements.
2
THE BRICKMAN GROUP, LTD.
CONDENSED COMBINED PRO FORMA STATEMENTS OF OPERATIONS
For the nine months ended September 30, 2006
(dollars in thousands)
| Historical | Pro forma adjustments |
Pro forma Combined | |||||||||||
| THE BRICKMAN GROUP, LTD. |
GROUNDMASTERS, INC. |
||||||||||||
| Net service revenues |
$ | 359,296 | $ | 22,432 | $ | — | $ | 381,728 | |||||
| Cost of services provided |
248,533 | 13,844 | — | 262,377 | |||||||||
| Gross profit |
110,763 | 8,588 | — | 119,351 | |||||||||
| General and administrative expenses |
62,360 | 4,635 | (625 | )(d) | 66,370 | ||||||||
| Amortization expense |
11,653 | 130 | 1,363 | (e) | 13,146 | ||||||||
| Income from operations |
36,750 | 3,823 | (738 | ) | 39,835 | ||||||||
| Interest expense |
14,839 | 152 | 2,831 | (f) | 17,822 | ||||||||
| Income before income taxes |
21,911 | 3,671 | (3,569 | ) | 22,013 | ||||||||
| Income tax provision |
9,203 | — | 42 | (g) | 9,245 | ||||||||
| Net income |
$ | 12,708 | $ | 3,671 | $ | (3,611 | ) | $ | 12,768 | ||||
See the accompanying notes to the unaudited condensed combined pro forma financial statements.
3
THE BRICKMAN GROUP, LTD.
CONDENSED COMBINED PRO FORMA STATEMENTS OF OPERATIONS
For the year ended December 31, 2005
(dollars in thousands)
| Historical | Pro forma adjustments |
Pro forma Combined | |||||||||||
| THE BRICKMAN GROUP, LTD. |
GROUNDMASTERS, INC. |
||||||||||||
| Net service revenues |
$ | 454,545 | $ | 24,511 | — | $ | 479,056 | ||||||
| Cost of services provided |
315,442 | 15,908 | — | 331,350 | |||||||||
| Gross profit |
139,103 | 8,603 | — | 147,706 | |||||||||
| General and administrative expenses |
76,228 | 6,738 | (833 | )(d) | 82,133 | ||||||||
| Amortization expense |
18,323 | — | 1,991 | (e) | 20,314 | ||||||||
| Income from operations |
44,552 | 1,865 | (1,158 | ) | 45,259 | ||||||||
| Interest expense |
19,943 | 97 | 3,881 | (f) | 23,921 | ||||||||
| Income before income taxes |
24,609 | 1,768 | (5,039 | ) | 21,338 | ||||||||
| Income tax provision |
10,250 | — | (1,357 | )(g) | 8,893 | ||||||||
| Net income |
$ | 14,359 | $ | 1,768 | $ | (3,682 | ) | $ | 12,445 | ||||
See the accompanying notes to the unaudited condensed combined pro forma financial statements.
4
THE BRICKMAN GROUP, LTD.
Notes to the Pro Forma Condensed Combined Financial Information
As of September 30, 2006
(dollars in thousands, except per share amounts)
| (a) | The total cash component of the acquisition is calculated as follows: |
| Cash purchase price |
$ | 47,750 | ||
| Less: advance on revolver |
(40,000 | ) | ||
| Cash portion of acquisition |
7,750 | |||
| Cash of Groundmasters, Inc. not acquired |
865 | |||
| Total cash adjustments |
$ | 8,615 | ||
| (b) | Certain assets and liabilities of Groundmasters, Inc. were not acquired or assumed in the transaction and, therefore, are eliminated. |
| (c) | Goodwill is calculated as follows: |
| Cash |
$ | 47,750 | ||
| Convertible debt |
5,000 | |||
| Transaction costs |
285 | |||
| Purchase price allocated |
$ | 53,035 | ||
| Fair value of net tangible assets and liabilities acquired: |
||||
| Current assets |
3,500 | |||
| Property and equipment |
3,320 | |||
| Current liabilities |
(1,100 | ) | ||
| Net tangible assets acquired |
5,720 | |||
| Estimated intangible assets acquired |
12,165 | |||
| Goodwill acquired |
$ | 35,150 | ||
| (d) | General and administrative expenses are adjusted to eliminate non-recurring charges. |
| (e) | Amortization expense is adjusted for identifiable intangible assets, principally customer contracts. The estimated remaining useful lives of customer contracts range from 1 to 14 years. Management has performed a preliminary evaluation of the identifiable intangible assets based on fair value criteria. These allocations are based on preliminary estimates. The recorded amounts may change from the amounts shown. |
| (f) | Interest expense is adjusted to reflect incremental revolver debt for the full year at the current weighed average rate of 9% and interest on the convertible note of 8%, less the interest expense on Groundmasters debt which was not assumed in the transaction. |
| (g) | The provision for income taxes reflects the income tax effect of the preceding adjustments, assuming our current effective rate of 41.5%. |
5
| This ‘8-K/A’ Filing | Date | Other Filings | ||
|---|---|---|---|---|
 | ||||
| Filed on: | 1/16/07 | |||
| For Period End: | 10/31/06 | 8-K | ||
| 9/30/06 | 10-Q | |||
| 12/31/05 | 10-K | |||
| List all Filings | ||||