(a) |
1.
Financial Statements
|
- |
Consolidated
Balance Sheets as of December 31, 2004 and 2003
*
|
- |
Consolidated
Statements of Operations for the years ended December 31, 2004, 2003
and
2002 *
|
- |
Consolidated
Statements of Stockholders’ Equity for the years ended December 31, 2004,
2003 and 2002 *
|
- |
Consolidated
Statements of Cash Flows for the years ended December 31, 2004, 2003
and
2002 *
|
- |
Notes
to Consolidated Financial Statements
*
|
Report
of Independent Registered Public Accounting Firm
|
*
|
Schedule
II - Valuation and Qualifying Accounts
|
*
|
Financial
Statements (Unaudited) of Sahlman Holding Company, Inc.:
|
5
|
-
Consolidated Balance Sheet (Unaudited) as of December 31,
2004
|
6
|
-
Consolidated Statement of Operations (Unaudited) for the year ended
December 31, 2004
|
7
|
-
Consolidated Statement of Changes in Shareholders’ Equity (Unaudited) for
the year ended December 31, 2004
|
8
|
-
Consolidated Statement of Cash Flows (Unaudited) for the year ended
December 31, 2004
|
9
|
-
Notes to Consolidated Financial Statements (Unaudited)
|
10
|
Financial
Statements of Sahlman Holding Company, Inc.:
|
18
|
-
Report of Independent Auditors: Sahlman Holding Company,
Inc.
|
19
|
-
Report of Independent Auditors: Sahlman Seafoods of Nicaragua,
S.A.
|
21
|
-
Consolidated Balance Sheet as of December 31, 2003
|
22
|
-
Consolidated Statement of Operations for the year ended December
31,
2003
|
23
|
-
Consolidated Statement of Changes in Shareholders’ Equity for the year
ended December 31, 2003
|
24
|
-
Consolidated Statement of Cash Flows for the year ended December
31,
2003
|
25
|
-
Notes to Consolidated Financial Statements
|
26
|
Financial
Statements (Unaudited) of Sahlman Holding Company, Inc.:
|
35
|
-
Consolidated Balance Sheet (Unaudited) as of December 31,
2002
|
36
|
-
Consolidated Statement of Operations (Unaudited) for the year ended
December 31, 2002
|
37
|
-
Consolidated Statement of Changes in Shareholders’ Equity (Unaudited) for
the year ended December 31, 2002
|
38
|
-
Consolidated Statement of Cash Flows (Unaudited) for the year ended
December 31, 2002
|
39
|
-
Notes to Consolidated Financial Statements (Unaudited)
|
40
|
Consent
of Independent Registered Public Accounting Firm
|
*
|
Consent
of Independent Public Accounting Firm
|
**
|
Consent
of Independent Public Accounting Firm
|
**
|
|
DECEMBER
31,
|
|||
2004
|
||||
ASSETS
|
||||
CURRENT
ASSETS
|
||||
Cash
and cash equivalents
|
$
|
114,822
|
||
Accounts
receivable - net of allowance for
|
||||
doubtful
accounts of $14,406
|
1,224,575
|
|||
Inventories
|
3,079,474
|
|||
Note
and other receivables
|
225,076
|
|||
Prepaid
expenses
|
438,542
|
|||
Prepaid
and recoverable income taxes
|
48,900
|
|||
Deferred
income taxes
|
212,395
|
|||
Total
current assets
|
5,343,784
|
|||
PROPERTY,
PLANT AND EQUIPMENT, NET
|
17,763,310
|
|||
OTHER
ASSETS
|
||||
Foreclosed
property
|
179,744
|
|||
Goodwill,
net
|
165,366
|
|||
Other,
net
|
116,875
|
|||
461,985
|
||||
$
|
23,569,079
|
|||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||
CURRENT
LIABILITIES
|
||||
Accounts
payable
|
$
|
1,200,481
|
||
Accrued
expenses
|
480,275
|
|||
Short-term
debt
|
1,264,439
|
|||
Current
maturities of long-term debt
|
246,200
|
|||
Income
taxes payable
|
185,430
|
|||
Total
current liabilities
|
3,376,825
|
|||
LONG-TERM
DEBT
|
2,146,518
|
|||
DEFERRED
INCOME TAXES
|
2,783,796
|
|||
Total
liabilities
|
8,307,139
|
|||
SHAREHOLDERS'
EQUITY
|
15,261,940
|
|||
$
|
23,569,079
|
|
YEAR
ENDED
|
|||
DECEMBER
31,
|
||||
2004
|
||||
GROSS
SALES
|
$
|
16,925,341
|
||
EXPENSES
|
||||
Cost
of goods sold
|
15,177,632
|
|||
Freight
and other sales expense
|
343,076
|
|||
General
and administrative expense
|
1,843,940
|
|||
Total
expenses
|
17,364,648
|
|||
GAIN
ON SALE OF ASSETS, NET
|
116
|
|||
LOSS
FROM OPERATIONS
|
(439,191
|
)
|
||
OTHER
INCOME AND (EXPENSE)
|
||||
Interest
expense
|
(181,878
|
)
|
||
Other
income
|
295,738
|
|||
Other
expense
|
(174,967
|
)
|
||
LOSS
BEFORE INCOME TAXES
|
(500,298
|
)
|
||
BENEFIT
FROM INCOME TAXES
|
(239,700
|
)
|
||
NET
LOSS
|
$
|
(260,598
|
)
|
|
ADDITIONAL
|
FOREIGN
|
TOTAL
|
||||||||||||||||||||||
|
TREASURY
STOCK
|
COMMON
STOCK
|
PAID-IN
|
CURRENCY
|
RETAINED
|
SHAREHOLDERS'
|
|||||||||||||||||||
|
SHARES
|
AMOUNT
|
SHARES
|
AMOUNT
|
CAPITAL
|
TRANSLATION
|
EARNINGS
|
EQUITY
|
|||||||||||||||||
BALANCE,
|
|||||||||||||||||||||||||
JANUARY
1, 2004
|
(11,182
|
)
|
$
|
(1,805,111
|
)
|
80,000
|
$
|
8,000
|
$
|
1,949,000
|
$
|
(231,375
|
)
|
$
|
15,602,024
|
$
|
15,522,538
|
||||||||
NET
LOSS
|
-
|
-
|
-
|
-
|
-
|
-
|
(260,598
|
)
|
(260,598
|
)
|
|||||||||||||||
BALANCE,
|
|||||||||||||||||||||||||
DECEMBER
31, 2004
|
(11,182
|
)
|
$
|
(1,805,111
|
)
|
80,000
|
$
|
8,000
|
$
|
1,949,000
|
$
|
(231,375
|
)
|
$
|
15,341,426
|
$
|
15,261,940
|
YEAR
ENDED
|
||||
DECEMBER
31,
|
||||
2004
|
||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||
Net
loss
|
$
|
(260,598
|
)
|
|
Adjustments
to reconcile net loss to net cash
|
||||
provided
by operating activities -
|
||||
Depreciation
and amortization
|
1,326,853
|
|||
Gain
on sale of assets
|
(116
|
)
|
||
Deferred
income taxes
|
(369,516
|
)
|
||
(Increase)
decrease in operating assets -
|
||||
Accounts
receivable
|
353,976
|
|||
Inventories
|
125,096
|
|||
Other
receivables
|
(105,140
|
)
|
||
Prepaid
expenses
|
18,341
|
|||
Prepaid
and recoverable income taxes
|
176,726
|
|||
Other
assets
|
17,066
|
|||
(Decrease)
increase in operating liabilities -
|
||||
Accounts
payable
|
258,080
|
|||
Accrued
expenses
|
4,737
|
|||
Income
taxes payable
|
(657,790
|
)
|
||
Net
cash provided by operating activities
|
887,715
|
|||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||
Purchase
of property, plant and equipment
|
(546,683
|
)
|
||
Proceeds
from sale of property, plant and equipment
|
1,250
|
|||
Proceeds
from note receivable
|
1,239
|
|||
Net
cash used in investing activities
|
(544,194
|
)
|
||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||
Finance
costs
|
(33,324
|
)
|
||
Proceeds
from long-term debt
|
604,660
|
|||
Payments
on long-term debt
|
(569,102
|
)
|
||
Net
payments under line of credit
|
(466,561
|
)
|
||
Net
cash used in financing activities
|
(464,327
|
)
|
||
NET
DECREASE IN CASH AND CASH EQUIVALENTS
|
(120,806
|
)
|
||
CASH
AND CASH EQUIVALENTS - BEGINNING
|
235,628
|
|||
CASH
AND CASH EQUIVALENTS - ENDING
|
$
|
114,822
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW
|
||||
INFORMATION
|
||||
Income
taxes paid
|
$
|
360,803
|
||
Interest
paid
|
$
|
183,638
|
||
SUPPLEMENTAL
DISCLOSURE OF NONCASH
|
||||
TRANSACTIONS
|
||||
Transfer
of note receivable to other assets
|
||||
as
a result of foreclosure on real property
|
$
|
179,744
|
Land improvements | 15 years |
Building | 5 - 30 years |
Marine vessels | 10 - 20 years |
Machinery and equipment | 5 - 20 years |
2004
|
||||
Seafood
products
|
$
|
1,233,091
|
||
Supplies
|
1,751,653
|
|||
Stock
in ponds
|
94,730
|
|||
|
||||
Total
inventories
|
$
|
3,079,474
|
2004
|
||||
Land
and land improvements
|
$
|
825,405
|
||
Buildings
|
6,054,805
|
|||
Marine
vessels
|
15,987,066
|
|||
Machinery
and equipment
|
5,418,794
|
|||
Furniture
and fixtures
|
350,041
|
|||
Total
property, plant and equipment
|
28,636,111
|
|||
Less
accumulated depreciation
|
(10,872,801
|
)
|
||
Property,
plant and equipment, net
|
$
|
17,763,310
|
2004
|
||||
Foreclosed
property
|
$
|
179,744
|
||
Goodwill
|
$
|
566,880
|
||
Less
accumulated amortization
|
(401,514
|
)
|
||
Goodwill,
net
|
$
|
165,366
|
||
Deferred
financing costs
|
$
|
85,318
|
||
Less
accumulated amortization
|
(44,479
|
)
|
||
Deferred
financing costs, net
|
40,839
|
|||
Other
assets (see Note 11)
|
76,036
|
|||
Total
other assets, net
|
$
|
116,875
|
2005
|
$
|
8,448
|
||
2006
|
8,448
|
|||
2007
|
8,448
|
|||
2008
|
8,448
|
|||
2009
|
7,047
|
|||
$
|
40,839
|
2004
|
||||
SouthTrust
term loans
|
$
|
2,168,633
|
||
Sahlman
Seafoods of Nicaragua, SA bank loan
|
224,085
|
|||
Total
long-term debt
|
2,392,718
|
|||
Less
current maturities of long-term debt
|
246,200
|
|||
Total
long-term debt
|
$
|
2,146,518
|
2005
|
$
|
246,200
|
||
2006
|
270,285
|
|||
2007
|
146,200
|
|||
2008
|
146,200
|
|||
2009
|
1,583,833
|
|||
$
|
2,392,718
|
2004
|
||||
Current
|
||||
Federal
|
$
|
(46,900
|
)
|
|
Foreign
|
49,377
|
|||
Total
current
|
2,477
|
|||
Deferred
|
||||
Federal
|
(212,720
|
)
|
||
State
|
(10,020
|
)
|
||
Foreign
|
(19,437
|
)
|
||
Total
deferred
|
(242,177
|
)
|
||
Total
benefit from income taxes
|
$
|
(239,700
|
)
|
2004
|
||||
Class
A common stock:
|
||||
Par
value per share
|
.10
|
|||
Shares
authorized
|
60,000
|
|||
Shares
outstanding, net of
|
||||
treasury
stock
|
27,068
|
|||
Class
B common stock:
|
||||
Par
value per share
|
.10
|
|||
Shares
authorized
|
50,000
|
|||
Shares
outstanding, net of
|
||||
treasury
stock
|
41,750
|
|||
Class
C common stock:
|
||||
Par
value per share
|
.10
|
|||
Shares
authorized
|
40,000
|
|||
Shares
outstanding, net of
|
||||
treasury
stock
|
-
|
|||
Class
D common stock:
|
||||
Par
value per share
|
.10
|
|||
Shares
authorized
|
40,000
|
|||
Shares
outstanding, net of
|
||||
treasury
stock
|
-
|
|
Number
|
||||||
of
|
Weighted
Average
|
||||||
Shares
|
Option
Price
|
||||||
Options
(granted and unexercised)
|
|||||||
at
January 1, 2004
|
4,117
|
$
|
160.08
|
||||
Granted
|
-
|
-
|
|||||
Exercised
|
-
|
-
|
|||||
Forfeited
|
-
|
-
|
|||||
Options
(granted and unexercised)
|
|||||||
at
December 31, 2004
|
4,117
|
$
|
160.08
|
DECEMBER
31,
|
||||
2003
|
||||
ASSETS
|
||||
CURRENT
ASSETS
|
||||
Cash
and cash equivalents
|
$
|
235,628
|
||
Accounts
receivable - net of allowance for
|
||||
doubtful
accounts of $9,000
|
1,578,551
|
|||
Inventories
|
3,204,570
|
|||
Note
and other receivables, current portion
|
127,648
|
|||
Prepaid
expenses
|
456,883
|
|||
Recoverable
income taxes
|
225,626
|
|||
Deferred
income taxes
|
221,798
|
|||
Total
current assets
|
6,050,704
|
|||
NOTE
RECEIVABLE, LESS CURRENT PORTION
|
173,271
|
|||
PROPERTY,
PLANT AND EQUIPMENT, NET
|
18,512,798
|
|||
OTHER
ASSETS
|
||||
Goodwill,
net
|
165,366
|
|||
Other,
net
|
115,420
|
|||
280,786
|
||||
$
|
25,017,559
|
|||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||
CURRENT
LIABILITIES
|
||||
Accounts
payable
|
$
|
942,401
|
||
Accrued
expenses
|
475,538
|
|||
Short-term
debt
|
1,731,000
|
|||
Current
maturities of long-term debt
|
611,617
|
|||
Income
taxes payable
|
843,220
|
|||
Total
current liabilities
|
4,603,776
|
|||
LONG-TERM
DEBT
|
1,745,543
|
|||
DEFERRED
INCOME TAXES
|
3,145,702
|
|||
Total
liabilities
|
9,495,021
|
|||
SHAREHOLDERS'
EQUITY
|
15,522,538
|
|||
$
|
25,017,559
|
|
YEAR
ENDED
|
|||
DECEMBER
31,
|
||||
2003
|
||||
GROSS
SALES
|
$
|
15,802,189
|
||
EXPENSES
|
||||
Cost
of goods sold
|
15,200,241
|
|||
Freight
and other sales expense
|
349,161
|
|||
General
and administrative expense
|
2,063,111
|
|||
Total
expenses
|
17,612,513
|
|||
GAIN
ON SALE OF ASSETS, NET
|
233,671
|
|||
LOSS
FROM OPERATIONS
|
(1,576,653
|
)
|
||
OTHER
INCOME AND (EXPENSE)
|
||||
Interest
expense
|
(131,578
|
)
|
||
Other
income
|
130,409
|
|||
Other
expense
|
(480,525
|
)
|
||
LOSS
BEFORE INCOME TAXES
|
(2,058,347
|
)
|
||
BENEFIT
FROM INCOME TAXES
|
(729,104
|
)
|
||
NET
LOSS
|
$
|
(1,329,243
|
)
|
ADDITIONAL
|
FOREIGN
|
TOTAL
|
|||||||||||||||||||||||
|
TREASURY
STOCK
|
COMMON
STOCK
|
PAID-IN
|
CURRENCY
|
RETAINED
|
SHAREHOLDERS'
|
|||||||||||||||||||
SHARES
|
AMOUNT
|
SHARES
|
AMOUNT
|
CAPITAL
|
TRANSLATION
|
EARNINGS
|
EQUITY
|
||||||||||||||||||
BALANCE,
|
|||||||||||||||||||||||||
JANUARY
1, 2003
|
(10,632
|
)
|
$
|
(1,717,067
|
)
|
80,000
|
$
|
8,000
|
$
|
1,949,000
|
$
|
(231,375
|
)
|
$
|
16,931,267
|
$
|
16,939,825
|
||||||||
PURCHASE
OF TREASURY
|
|||||||||||||||||||||||||
STOCK
|
(550
|
)
|
(88,044
|
)
|
-
|
-
|
-
|
-
|
-
|
(88,044
|
)
|
||||||||||||||
NET
LOSS
|
-
|
-
|
-
|
-
|
-
|
-
|
(1,329,243
|
)
|
(1,329,243
|
)
|
|||||||||||||||
BALANCE,
|
|||||||||||||||||||||||||
DECEMBER
31, 2003
|
(11,182
|
)
|
$
|
(1,805,111
|
)
|
80,000
|
$
|
8,000
|
$
|
1,949,000
|
$
|
(231,375
|
)
|
$
|
15,602,024
|
$
|
15,522,538
|
|
YEAR
ENDED
|
|||
DECEMBER
31,
|
||||
2003
|
||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||
Net
loss
|
$
|
(1,329,243
|
)
|
|
Adjustments
to reconcile net loss to net cash
|
||||
provided
by operating activities -
|
||||
Depreciation
and amortization
|
1,560,586
|
|||
Gain
on sale of assets
|
(233,671
|
)
|
||
Deferred
income taxes
|
(1,084,045
|
)
|
||
(Increase)
decrease in operating assets -
|
||||
Accounts
receivable
|
(198,869
|
)
|
||
Inventories
|
769,009
|
|||
Other
receivables
|
160,733
|
|||
Prepaid
expenses
|
(118,780
|
)
|
||
Prepaid
and recoverable income taxes
|
(225,626
|
)
|
||
Other
assets
|
(403
|
)
|
||
(Decrease)
increase in operating liabilities -
|
||||
Accounts
payable
|
(193,165
|
)
|
||
Accrued
expenses
|
(15,597
|
)
|
||
Income
taxes payable
|
724,750
|
|||
Net
cash provided by operating activities
|
(184,321
|
)
|
||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||
Purchase
of property, plant and equipment
|
(681,275
|
)
|
||
Proceeds
from sale of property, plant and equipment
|
1,102,319
|
|||
Proceeds
from note receivable
|
7,086
|
|||
Net
cash provided by investing activities
|
428,130
|
|||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||
Finance
costs
|
(16,122
|
)
|
||
Proceeds
from long-term debt
|
400,000
|
|||
Payments
on long-term debt
|
(799,228
|
)
|
||
Net
borrowings under line of credit
|
220,953
|
|||
Purchase
of treasury stock
|
(88,044
|
)
|
||
Payments
on short-term debt
|
-
|
|||
Net
cash used in financing activities
|
(282,441
|
)
|
||
NET
DECREASE IN CASH AND CASH
|
||||
EQUIVALENTS
|
(38,632
|
)
|
||
CASH
AND CASH EQUIVALENTS - BEGINNING
|
274,260
|
|||
CASH
AND CASH EQUIVALENTS - ENDING
|
$
|
235,628
|
||
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW
|
||||
INFORMATION
|
||||
Income
taxes refunded
|
$
|
(190,131
|
)
|
|
Interest
paid
|
$
|
134,045
|
Land improvements | 15 years |
Building | 5 - 30 years |
Marine vessels | 10 - 20 years |
Machinery and equipment | 5 - 20 years |
2003
|
||||
Seafood
products
|
$
|
1,474,220
|
||
Supplies
|
1,635,113
|
|||
Stock
in ponds
|
95,237
|
|||
|
||||
Total
inventories
|
$
|
3,204,570
|
2003
|
||||
Land
|
$
|
561,854
|
||
Land
improvements
|
1,542,668
|
|||
Buildings
|
4,383,481
|
|||
Marine
vessels
|
15,990,078
|
|||
Machinery
and equipment
|
5,802,766
|
|||
Furniture
and fixtures
|
750,841
|
|||
Construction
in progress
|
223,950
|
|||
Total
property, plant and equipment
|
29,255,638
|
|||
Less
accumulated depreciation
|
(10,742,840
|
)
|
||
Property,
plant and equipment, net
|
$
|
18,512,798
|
2003
|
||||
Goodwill
|
$
|
566,880
|
||
Less
accumulated amortization
|
(401,514
|
)
|
||
Goodwill,
net
|
$
|
165,366
|
||
Deferred
financing costs
|
$
|
51,994
|
||
Less
accumulated amortization
|
(29,676
|
)
|
||
Deferred
financing costs, net
|
22,318
|
|||
Other
assets (see Note 11)
|
93,102
|
|||
Total
other assets, net
|
$
|
115,420
|
2004
|
$
|
9,224
|
||
2005
|
8,674
|
|||
2006
|
4,420
|
|||
$
|
22,318
|
2003
|
||||
SouthTrust
term loans
|
$
|
2,202,330
|
||
Sahlman
Seafoods of Nicaragua, SA bank loan
|
150,000
|
|||
Other
|
4,830
|
|||
Total
long-term debt
|
2,357,160
|
|||
Less
current maturities of long-term debt
|
611,617
|
|||
Total
long-term debt
|
$
|
1,745,543
|
2004
|
$
|
611,617
|
||
2005
|
606,787
|
|||
2006
|
1,138,756
|
|||
$
|
2,357,160
|
2003
|
||||
Current
|
||||
Federal
|
$
|
354,941
|
||
Foreign
|
-
|
|||
Total
current
|
354,941
|
|||
Deferred
|
||||
Federal
|
(1,038,397
|
)
|
||
State
|
(45,648
|
)
|
||
Foreign
|
-
|
|||
Total
deferred
|
(1,084,045
|
)
|
||
Total
provision for (benefit from) income taxes
|
$
|
(729,104
|
)
|
2003
|
||||
Class
A common stock:
|
||||
Par
value per share
|
.10
|
|||
Shares
authorized
|
60,000
|
|||
Shares
outstanding, net of
|
||||
treasury
stock
|
27,068
|
|||
Class
B common stock:
|
||||
Par
value per share
|
.10
|
|||
Shares
authorized
|
50,000
|
|||
Shares
outstanding, net of
|
||||
treasury
stock
|
41,750
|
|||
Class
C common stock:
|
||||
Par
value per share
|
.10
|
|||
Shares
authorized
|
40,000
|
|||
Shares
outstanding, net of
|
||||
treasury
stock
|
-
|
|||
Class
D common stock:
|
||||
Par
value per share
|
.10
|
|||
Shares
authorized
|
40,000
|
|||
Shares
outstanding, net of
|
||||
treasury
stock
|
-
|
|
Number
|
||||||
of
|
Weighted
Average
|
||||||
|
Shares
|
Option
Price
|
|||||
Options
(granted and unexercised)
|
|||||||
at
January 1, 2003
|
4,117
|
$
|
160.08
|
||||
Granted
|
-
|
-
|
|||||
Exercised
|
-
|
-
|
|||||
Forfeited
|
-
|
-
|
|||||
Options
(granted and unexercised)
|
|||||||
at
December 31, 2003
|
4,117
|
$
|
160.08
|
|
Amount Reported
|
|||||||||
Adjustment
|
in
the
|
|||||||||
Due
to Change
|
Accompanying
|
|||||||||
Amount
|
to
Twenty-Five
|
Consolidated
|
||||||||
|
Reported
By
|
Year
Life for
|
Financial
|
|||||||
Other
Auditors
|
SSN
Buildings
|
Statements
|
||||||||
Accumulated
depreciation
|
$
|
5,135,910
|
$
|
1,294,314
|
$
|
3,841,596
|
DECEMBER
31,
|
||||
2002
|
||||
ASSETS
|
||||
CURRENT
ASSETS
|
||||
Cash
and cash equivalents
|
$
|
274,260
|
||
Accounts
receivable - net of allowance for
|
||||
doubtful
accounts of $2,000
|
1,379,682
|
|||
Inventories
|
3,973,579
|
|||
Note
and other receivables, current portion
|
287,754
|
|||
Prepaid
expenses
|
338,103
|
|||
Total
current assets
|
6,253,378
|
|||
NOTE
RECEIVABLE, LESS CURRENT PORTION
|
180,984
|
|||
PROPERTY,
PLANT AND EQUIPMENT, NET
|
20,251,677
|
|||
OTHER
ASSETS
|
||||
Goodwill,
net
|
165,366
|
|||
Other,
net
|
107,975
|
|||
273,341
|
||||
$
|
26,959,380
|
|||
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||
CURRENT
LIABILITIES
|
||||
Accounts
payable
|
$
|
1,135,566
|
||
Accrued
expenses
|
491,135
|
|||
Short-term
debt
|
1,510,047
|
|||
Current
maturities of long-term debt
|
1,471,510
|
|||
Deferred
income taxes - current
|
85,286
|
|||
Income
taxes payable
|
118,470
|
|||
Total
current liabilities
|
4,812,014
|
|||
LONG-TERM
DEBT
|
1,284,878
|
|||
DEFERRED
INCOME TAXES
|
3,922,663
|
|||
Total
liabilities
|
10,019,555
|
|||
SHAREHOLDERS'
EQUITY
|
16,939,825
|
|||
$
|
26,959,380
|
|
YEAR
ENDED
|
|||
|
DECEMBER
31,
|
|||
2002
|
||||
GROSS
SALES
|
$
|
17,612,529
|
||
EXPENSES
|
||||
Cost
of goods sold
|
16,127,157
|
|||
Freight
and other sales expense
|
281,270
|
|||
General
and administrative expense
|
2,165,342
|
|||
Total
expenses
|
18,573,769
|
|||
GAIN
ON SALE OF ASSETS, NET
|
1,338,468
|
|||
INCOME
FROM OPERATIONS
|
377,228
|
|||
OTHER
INCOME AND (EXPENSE)
|
||||
Interest
expense
|
(175,764
|
)
|
||
Other
income
|
144,556
|
|||
Other
expense
|
(421,924
|
)
|
||
LOSS
BEFORE INCOME TAXES
|
(75,904
|
)
|
||
PROVISION
FOR INCOME TAXES
|
38,429
|
|||
NET
LOSS
|
$
|
(114,333
|
)
|
ADDITIONAL
|
FOREIGN
|
TOTAL
|
|||||||||||||||||||||||
|
TREASURY
STOCK
|
COMMON
STOCK
|
PAID-IN
|
CURRENCY
|
RETAINED
|
SHAREHOLDERS'
|
|||||||||||||||||||
SHARES
|
AMOUNT
|
SHARES
|
AMOUNT
|
CAPITAL
|
TRANSLATION
|
EARNINGS
|
EQUITY
|
||||||||||||||||||
BALANCE,
|
|||||||||||||||||||||||||
JANUARY
1, 2002
|
(10,632
|
)
|
$
|
(1,717,067
|
)
|
80,000
|
$
|
8,000
|
$
|
1,949,000
|
$
|
(231,375
|
)
|
$
|
17,045,600
|
$
|
17,054,158
|
||||||||
NET
LOSS
|
-
|
-
|
-
|
-
|
-
|
-
|
(114,333
|
)
|
(114,333
|
)
|
|||||||||||||||
BALANCE,
|
|||||||||||||||||||||||||
DECEMBER
31, 2002
|
(10,632
|
)
|
$
|
(1,717,067
|
)
|
80,000
|
$
|
8,000
|
$
|
1,949,000
|
$
|
(231,375
|
)
|
$
|
16,931,267
|
$
|
16,939,825
|
YEAR
ENDED
|
||||
|
DECEMBER
31,
|
|||
2002
|
||||
CASH
FLOWS FROM OPERATING ACTIVITIES
|
||||
Net
loss
|
$
|
(114,333
|
)
|
|
Adjustments
to reconcile net loss to net cash
|
||||
provided
by operating activities -
|
||||
Depreciation
and amortization
|
2,101,966
|
|||
Gain
on sale of assets
|
(1,338,468
|
)
|
||
Deferred
income taxes
|
(120,803
|
)
|
||
(Increase)
decrease in operating assets -
|
||||
Accounts
receivable
|
406,218
|
|||
Inventories
|
(496,787
|
)
|
||
Other
receivables
|
116,754
|
|||
Prepaid
expenses
|
(47,131
|
)
|
||
Prepaid
and recoverable income taxes
|
305,542
|
|||
Other
assets
|
4,235
|
|||
(Decrease)
increase in operating liabilities -
|
||||
Accounts
payable
|
199,108
|
|||
Accrued
expenses
|
27,816
|
|||
Income
taxes payable
|
118,470
|
|||
Net
cash provided by operating activities
|
1,162,587
|
|||
CASH
FLOWS FROM INVESTING ACTIVITIES
|
||||
Purchase
of property, plant and equipment
|
(549,382
|
)
|
||
Proceeds
from sale of property, plant and equipment
|
2,340,430
|
|||
Proceeds
from note receivable
|
6,511
|
|||
Net
cash provided by investing activities
|
1,797,559
|
|||
CASH
FLOWS FROM FINANCING ACTIVITIES
|
||||
Payments
on long-term debt
|
(3,369,819
|
)
|
||
Net
borrowings under line of credit
|
622,962
|
|||
Payments
on short-term debt
|
(257,000
|
)
|
||
Net
cash used in financing activities
|
(3,003,857
|
)
|
||
NET
DECREASE IN CASH AND CASH EQUIVALENTS
|
(43,711
|
)
|
||
CASH
AND CASH EQUIVALENTS - BEGINNING
|
317,971
|
|||
CASH
AND CASH EQUIVALENTS - ENDING
|
$
|
274,260
|
SUPPLEMENTAL
DISCLOSURE OF CASH FLOW
|
||||
INFORMATION
|
||||
Income
taxes refunded
|
$
|
(277,551
|
)
|
|
Interest
paid
|
$
|
196,990
|
Land improvements | 15 years |
Building | 5 - 30 years |
Marine vessels | 10 - 20 years |
Machinery and equipment | 5 - 20 years |
2002
|
||||
Seafood
products
|
$
|
2,034,002
|
||
Supplies
|
1,737,804
|
|||
Stock
in ponds
|
201,773
|
|||
|
||||
Total
inventories
|
$
|
3,973,579
|
2002
|
||||
Land
|
$
|
602,573
|
||
Land
improvements
|
219,970
|
|||
Buildings
|
5,691,791
|
|||
Marine
vessels
|
17,754,989
|
|||
Machinery
and equipment
|
5,560,965
|
|||
Furniture
and fixtures
|
516,402
|
|||
Construction
in progress
|
18,740
|
|||
Total
property, plant and equipment
|
30,365,430
|
|||
Less
accumulated depreciation
|
(10,113,753
|
)
|
||
Property,
plant and equipment, net
|
$
|
20,251,677
|
2002
|
||||
Goodwill
|
$
|
566,880
|
||
Less
accumulated amortization
|
(401,514
|
)
|
||
Goodwill,
net
|
$
|
165,366
|
||
Deferred
financing costs
|
$
|
35,872
|
||
Less
accumulated amortization
|
(20,596
|
)
|
||
Deferred
financing costs, net
|
15,276
|
|||
Other
assets (see Note 11)
|
92,699
|
|||
Total
other assets, net
|
$
|
107,975
|
2003
|
$
|
6,600
|
||
2004
|
3,850
|
|||
2005
|
3,300
|
|||
2006
|
950
|
|||
2007
|
576
|
|||
$
|
15,276
|
2002
|
||||
SouthTrust
term loans
|
$
|
2,745,763
|
||
Other
|
10,625
|
|||
Total
long-term debt
|
2,756,388
|
|||
Less
current maturities of long-term debt
|
1,471,510
|
|||
Total
long-term debt
|
$
|
1,284,878
|
2003
|
$
|
1,471,510
|
||
2004
|
398,211
|
|||
2005
|
80,000
|
|||
2006
|