CTC, Okey dokey; Here's some of the numbers let me know if you need more. Total CST shares outstanding= 5,209,000 shares. That will convert to via a factor of .74391 to EVI shares or 3,875,027 shares of EVI will be newly issued.
Now CST owns 3,897,462 shares of EVI itself. These shares will be "retired" by EVI into its treasury. In addition EVI will pay $5.52/share to CST shareholders over five years, $3.60 up front and an additional $1.92/share in five years if certain indemnity obligations are not triggered.
Thus the number of shares of EVI appears to remain the same pre- and post-transaction, and EVI pays up to $28,753,680.00 for CST. Now CST also has $33,617,000 of long term debt which EVI will assume.
Those two figures total roughly a cumulative purchase price of $62,370,685; in addition CST has $22,000,000 in deferred income taxes, which if you include that in liabilities equals $84,370,685 in total liabilities.
Now CST has $6,850,000 cash and short-term notes, $9,258,000 accounts receivable, $1,459,000 in prepaid obligations, and $73,000,000 in fixed assets, my guess is their real estate and warehouses, or a total of $90,567,000 in "solid" assets (I did not check if fixed asets are carried at book value or their purchase price).
Thus in terms of effect upon capital, the transaction looks to be a wash to slightly positive in terms of capital for EVI, and will not result in additional shares being issued. However the 3,800,000 million shares will be freed to the EVI float which should make EVI more attractive to large mutual funds,etc....
As to effect upon earnings, CST has a positive cash flow and earnings in 1997... let me know if you need more data... All data on CST from their Nov 1997 and Feb 1998 SEC 10-Q Quarterly filings....
Sincerely,
Doug F. |
