Board of Directors of Meredith Enterprises Recommends Acceptance of Tender Offer by Entity Formed by Allen Meredith; Company Also Issues Unaudited Financial Results For 2005.MENLO PARK Menlo Park. 1 Residential city (1990 pop. 28,040), San Mateo co., W Calif.; inc. 1874. Electronic equipment and aerospace products are manufactured in the city. Menlo College and a Stanford Univ. research institute are there. 2 Uninc. , Calif. -- Meredith Enterprises, Inc. (Pink Sheets:MPQI) today announced that its board of directors (without Allen Al·len , Edgar 1892-1943. American anatomist who is noted for his studies of hormones and for the discovery (1923) of estrogen. K. Meredith) has recommended that the stockholders of Meredith Enterprises, Inc. accept the tender offer by Meredith Property Trust, LLC (Logical Link Control) See "LANs" under data link protocol. LLC - Logical Link Control , an entity formed by Mr. Meredith, who is the President, Chief Executive Officer and Chairman of the Board of Directors of Meredith Enterprises. Meredith Property Trust, LLC is offering to pay $15.00 per share in cash for all of the outstanding shares of Meredith Enterprises' common stock not owned by Mr. Meredith, his affiliates and associates. The offer is subject to certain conditions as described in the offer materials of Meredith Property Trust, LLC. Meredith Enterprises has prepared a recommendation statement that explains the board's reasoning in reaching its decision, along with other important information. Meredith Enterprises is mailing the recommendation statement to its stockholders and will post it on its website at www.meredithreit.com as soon as practicable practicable adj. when something can be done or performed. . Meredith Enterprises also released its unaudited 2005 financial results. The company's unaudited consolidated balance sheets consolidated balance sheet A balance sheet in which assets and liabilities of a parent company and its controlled subsidiaries are combined, thereby presenting balance sheet items for the parent and its subsidiaries as if they were a single firm. as of December December: see month. 31, 2005 and 2004, statements of income for the years ended December 31, 2005 and 2004 and statements of cash flows for the years ended December 31, 2005 and 2004 are attached to this press release as Exhibit A. (Footnotes are omitted.)
Exhibit A
MEREDITH ENTERPRISES, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
December 31, 2005 2004
----------------------------------------------------------------------
Assets
Rental real estate, less accumulated
depreciation (Notes 2 and 4) $42,179,446 $44,515,439
Rental real estate held for sale, net
(Notes 2 and 4) - 1,602,432
Other assets - rental real estate held for
sale - 30,618
Construction in progress (Note 2) 9,382,299 4,429,801
Cash and cash equivalents 1,761,422 1,660,748
Restricted Cash 1,000,000 -
Deferred rent, net of allowance of
$365,410 and $339,670 in 2005 and 2004,
respectively 532,873 543,979
Accounts receivable, net of allowance of
$65,237 and $77,029 in 2005 and 2004,
respectively 25,038 105,094
Loan origination fees, net of accumulated
amortization of $269,536 and $199,768 in
2005 and 2004, respectively 485,513 545,281
Other assets 1,192,909 874,918
----------------------------------------------------------------------
Total assets $56,559,500 $54,308,310
======================================================================
Liabilities and Stockholders' Equity
Liabilities
Notes payable secured by rental real estate
(Note 6) $38,319,256 $34,432,882
Notes payable secured by rental real estate
held for sale (Note 6) - 1,057,213
Accounts payable and accrued liabilities 1,132,333 931,040
Security deposits and prepaid rent 225,100 223,888
Other liabilities - rental real estate held
for sale - 14,168
----------------------------------------------------------------------
Total liabilities 39,676,689 36,659,191
----------------------------------------------------------------------
Commitments and contingencies (Note 10)
Stockholders' equity (Note 5)
Common stock $.01 par value; 4,000,000
shares authorized; 978,632 and 975,298
shares issued and outstanding as of
December 31, 2005 and 2004, respectively 9,787 9,770
Preferred stock; $.01 par value; 1,000,000
shares authorized; 0 shares issued and
outstanding as of December 31, 2005 and
2004, respectively - -
Treasury stock at cost; 63,938 and 8,000
shares at December 31,2005 and 2004,
respectively (894,911) (108,160)
Additional paid-in capital 27,210,945 27,193,876
Dividends in excess of retained earnings (9,443,010) (9,446,367)
----------------------------------------------------------------------
Total stockholders' equity 16,882,811 17,649,119
----------------------------------------------------------------------
Total liabilities and stockholders' equity $56,559,500 $54,308,310
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MEREDITH ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
Years ended December 31, 2005 2004
----------------------------------------------------------------------
Revenues
Rental (Notes 2 and 4) $6,158,677 $6,628,220
Tenant reimbursements 1,025,454 1,018,409
Interest 23,198 13,438
----------------------------------------------------------------------
7,207,329 7,660,067
----------------------------------------------------------------------
Cost and expenses
Interest 2,276,079 2,367,319
General and administrative 1,600,320 1,399,895
Depreciation 1,051,448 1,131,732
Ground rent (Note 10) 897,750 930,264
Operating 932,979 839,562
Property tax 554,447 524,954
----------------------------------------------------------------------
7,313,023 7,193,726
----------------------------------------------------------------------
(Loss) income from continuing operations (105,694) 466,341
----------------------------------------------------------------------
Income (loss) from discontinued operations
(Note 3):
Gain on sale of rental real estate held
for sale 930,450 344,314
Loss from discontinued operations (11,531) 50,502
----------------------------------------------------------------------
Net income $ 813,225 $ 861,157
======================================================================
Net income per share-basic (Note 1):
(Loss) income from continuing operations $ (0.11) $ 0.48
discontinued operations:
Gain on sale of rental real estate held
for sale $ 0.97 $ 0.35
(Loss) income from discontinued
operations $ (0.01) $ .05
----------------------------------------------------------------------
Net income per share- Basic $ 0.85 $ 0.88
======================================================================
Weighted average shares outstanding - Basic 956,720 974,089
======================================================================
Net income per share- diluted (Note 1):
(Loss) income from continuing operations $ (0.11) $ .46
discontinued operations:
Gain on sale of rental real estate held
for sale $ 0.95 $ 0.34
(Loss) income from discontinued operations $ (0.01) $ .05
----------------------------------------------------------------------
Net income per share - Diluted $ 0.83 $ 0.85
======================================================================
Weighted average shares outstanding - Diluted 981,356 1,010,428
======================================================================
MEREDITH ENTERPRISES, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Years ended December 31, 2005 2004
----------------------------------------------------------------------
Cash flows from operating activities
Net income $ 813,225 $ 861,157
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation expense 1,070,535 1,209,684
Interest expense due to amortization of
loan origination fees 59,768 69,767
Impairment adjustment to property carrying
value - 167,568
Gain on sale of rental real estate held
for sale (930,450) (344,314)
Expense on treasury stock transaction - 19,560
Increase (decrease) in cash flows from
changes in operating assets and
liabilities:
Deferred rent 11,106 (28,335)
Accounts receivable 80,056 10,129
Other assets (317,992) (204,493)
Other assets- rental real estate held
for sale 30,618 83,842
Accounts payable and accrued
liabilities 201,293 125,153
Security deposits and prepaid rent 1,212 13,409
Other liabilities - rental real
estate held for sale (14,168) (29,291)
----------------------------------------------------------------------
Net cash provided by operating activities 1,005,203 1,953,836
----------------------------------------------------------------------
Cash flows from investing activities
Capital expenditures on rental real
estate (326,207) (78,941)
Payments for construction in progress (4,952,498) (1,738,470)
Increase in restricted cash (1,000,000) -
Proceeds from sale of rental real estate 4,124,547 884,314
----------------------------------------------------------------------
Net cash (used in) investing activities (2,154,158) (933,097)
----------------------------------------------------------------------
Cash flows from financing activities
Dividends (809,868) (971,548)
Proceeds from notes payable 4,254,509 772,497
Payments on notes payable secured by
rental real estate (368,135) (3,217,984)
Payments on notes payable secured by
rental real estate held for sale (1,057,213) (550,934)
Payments for purchase of treasury stock (786,751) (270,400
Proceeds from sale of treasury stock - 162,240
Proceeds from exercise of stock options 17,087 17,086
Increase in loan origination fees - -
----------------------------------------------------------------------
Net cash provided by (used in) financing
activities 1,249,629 (4,059,043)
----------------------------------------------------------------------
Net increase (decrease) in cash and cash
equivalents 100,674 (3,038,304)
Cash and cash equivalents, beginning of
year 1,660,748 4,699,052
----------------------------------------------------------------------
Cash and cash equivalents, end of year $ 1,761,422 $ 1,660,748
======================================================================
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