Published on September 25, 2015
Exhibit 99 - Unauditied pro forma consed consolidated financial statements
|
SELF STORAGE GROUP, INC.
|
||||||
|
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
|
Pro Forma Adjustments
|
|||||
|
December 31, 2014
|
SELF
|
Self Storage
|
Pro Forma
|
|||
|
Historical (A)
|
Properties (B)
|
Other
|
Combined
|
|||
|
Assets
|
||||||
|
Self storage properties
|
$ -
|
$ 27,377,216
|
3,555,000
|
(D)
|
$ 30,932,216
|
|
|
Less accumulated depreciation
|
-
|
(1,001,873)
|
(1,001,873)
|
|||
|
Self storage properties, net
|
-
|
26,375,343
|
3,555,000
|
29,930,343
|
||
|
Investments, at value
|
||||||
|
Wholly-owned subsidiaries (cost $27,275,000 )
|
30,830,000
|
-
|
(30,830,000)
|
(C) (D)
|
-
|
|
|
Unaffiliated issuers (cost $5,946,503)
|
7,383,682
|
-
|
(7,383,682)
|
(E) (F)
|
-
|
|
|
Cash / Cash and cash equivalents
|
29,754
|
535,385
|
3,421,192
|
(E)
|
3,986,331
|
|
|
Available-for-sale securities
|
-
|
-
|
3,962,490
|
(F)
|
3,962,490
|
|
|
Accounts receivable
|
-
|
87,996
|
87,996
|
|||
|
Dividends receivable
|
13,202
|
-
|
13,202
|
|||
|
Due from wholly-owned subsidiaries
|
3,372
|
-
|
(3,372)
|
(G)
|
-
|
|
|
Prepaid expenses
|
-
|
122,065
|
122,065
|
|||
|
Other assets
|
10,195
|
-
|
10,195
|
|||
|
Total assets
|
$ 38,270,205
|
$ 27,120,789
|
$ (27,278,372)
|
$ 38,112,622
|
||
|
Liabilities
|
||||||
|
Accounts payable and accrued expenses
|
$ 125,223
|
$ 308,665
|
(3,372)
|
(G)
|
$ 430,516
|
|
|
Due to affiliates
|
44,074
|
219
|
44,293
|
|||
|
Deferred revenue
|
-
|
73,960
|
73,960
|
|||
|
Total liabilities
|
169,297
|
382,844
|
(3,372)
|
548,769
|
||
|
Net Assets / Stockholders Equity
|
||||||
|
Capital stock and additional paid in capital
|
33,159,940
|
-
|
33,159,940
|
|||
|
Undistributed net investment loss
|
(97,728)
|
-
|
(97,728)
|
|||
|
Net unrealized appreciation on investments and foreign currencies
|
5,038,696
|
-
|
(5,038,696)
|
(H) (I)
|
-
|
|
|
Member capital
|
-
|
27,275,000
|
(27,275,000)
|
(C)
|
-
|
|
|
Accumulated other comprehensive income
|
-
|
-
|
1,483,696
|
(I)
|
1,483,696
|
|
|
Retained earnings (deficit)
|
-
|
(537,055)
|
3,555,000
|
(H)
|
3,017,945
|
|
|
Total net assets / stockholders equity
|
38,100,908
|
26,737,945
|
(27,275,000)
|
37,563,853
|
||
|
Total liabilities and net assets / stockholders equity
|
$ 38,270,205
|
$ 27,120,789
|
$ (27,278,372)
|
$ 38,112,622
|
||
|
ADJUSTMENTS TO UNAUDITED PRO FORMA BALANCE SHEET
|
|||||||||
|
(A)
|
Historical Statement of Assets and Liabilities. Represents the historical assets and liabilities of the Company as of December 31, 2014.
|
||||||||
|
(B)
|
Represents the combined balance sheets of the Company's wholly-owned subsidiaries as of December 31, 2014.
|
||||||||
|
Combined
|
|||||||||
|
Balance Sheets
|
SSG Bolingbrook LLC
|
SSG Dolton LLC
|
SSG Merrillville LLC
|
SSG Rochester LLC
|
SSG Sadsbury LLC
|
SSG Summerville I LLC
|
SSG Summerville II LLC
|
||
|
Assets
|
|||||||||
|
Land
|
$ 2,661,000
|
$ 572,500
|
$ 517,500
|
$ 486,000
|
$ 350,000
|
$ 375,000
|
$ 230,000
|
$ 130,000
|
|
|
Buildings
|
23,664,107
|
5,100,246
|
4,609,608
|
4,324,608
|
3,102,193
|
3,335,666
|
2,042,975
|
1,148,811
|
|
|
Improvements and other
|
1,052,109
|
55,549
|
43,188
|
64,216
|
208,027
|
622,218
|
41,490
|
17,421
|
|
|
Total self storage properties
|
27,377,216
|
5,728,295
|
5,170,296
|
4,874,824
|
3,660,220
|
4,332,884
|
2,314,465
|
1,296,232
|
|
|
Accumulated depreciation
|
(1,001,873)
|
(193,110)
|
(174,425)
|
(164,827)
|
(171,472)
|
(177,422)
|
(79,732)
|
(40,885)
|
|
|
Self storage properties, net
|
26,375,343
|
5,535,185
|
4,995,871
|
4,709,997
|
3,488,748
|
4,155,462
|
2,234,733
|
1,255,347
|
|
|
Cash and cash equivalents
|
535,385
|
180,626
|
109,258
|
72,597
|
127,846
|
13,153
|
19,249
|
12,656
|
|
|
Accounts receivable
|
87,996
|
4,713
|
21,385
|
28,303
|
7,630
|
7,051
|
11,895
|
7,019
|
|
|
Prepaid expenses
|
122,065
|
5,919
|
6,902
|
6,348
|
57,488
|
37,704
|
4,886
|
2,818
|
|
|
Total assets
|
$ 27,120,789
|
$ 5,726,443
|
$ 5,133,416
|
$ 4,817,245
|
$ 3,681,712
|
$ 4,213,370
|
$ 2,270,763
|
$ 1,277,840
|
|
|
Liabilities and member capital
|
|||||||||
|
Accounts payable and accrued expenses
|
$ 308,884
|
$ 115,045
|
$ 94,820
|
$ 68,294
|
$ 5,253
|
$ 11,712
|
$ 8,473
|
$ 5,287
|
|
|
Deferred revenue
|
73,960
|
13,603
|
10,732
|
8,424
|
13,775
|
9,833
|
11,756
|
5,837
|
|
|
Total liabilities
|
382,844
|
128,648
|
105,552
|
76,718
|
19,028
|
21,545
|
20,229
|
11,124
|
|
|
Member Capital
|
|||||||||
|
Member capital
|
27,275,000
|
5,700,000
|
5,100,000
|
4,825,000
|
3,750,000
|
4,300,000
|
2,300,000
|
1,300,000
|
|
|
Retained earnings (deficit)
|
(537,055)
|
(102,205)
|
(72,136)
|
(84,473)
|
(87,316)
|
(108,175)
|
(49,466)
|
(33,284)
|
|
|
Total member capital
|
26,737,945
|
5,597,795
|
5,027,864
|
4,740,527
|
3,662,684
|
4,191,825
|
2,250,534
|
1,266,716
|
|
|
Total liabilities and member capital
|
$ 27,120,789
|
$ 5,726,443
|
$ 5,133,416
|
$ 4,817,245
|
$ 3,681,712
|
$ 4,213,370
|
$ 2,270,763
|
$ 1,277,840
|
|
|
(C)
|
Represents the reclassification of the Company's capital contribution of investments in its wholly-owned subsidiaries from securities to eliminate member capital contributed to self storage property subsidiaries.
|
||||||
|
(D)
|
Represents the reclassification of the Company's investment in a money market fund which is deemed a cash equivalent from securities.
|
||||||
|
(E)
|
Represents the reclassification of common and preferred stocks investments in securities to available-for-sale securities. Such investments will be accounted for at fair value with unrealized changes in fair
|
||||||
|
value reflected as a separate component of other comprehensive income, a component of stockholders' equity.
|
|||||||
|
(F)
|
Represents the adjustment to reclassify unrealized appreciation on the self storage prosperities to pro forma retained earnings.
|
||||||
|
(G)
|
Represents the elimination of the intercompany balance among SELF and its subsidiaries.
|
||||||
|
(H)
|
Represents the adjustments to reclassify undistributed net investment loss, net accumulated unrealized appreciation on investments and foreign currencies to pro forma retained earnings.
|
||||||
|
SELF STORAGE GROUP, INC.
|
||||||
|
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS
|
||||||
|
Year Ended December 31, 2014
|
||||||
|
Pro Forma Adjustments
|
||||||
|
SELF
|
Self Storage
|
Pro Forma
|
||||
|
Historical (AA)
|
Properties (BB)
|
Other
|
Combined
|
|||
|
Investment Income / Revenue
|
||||||
|
Rental revenue
|
$ -
|
$ 3,851,751
|
$ 3,851,751
|
|||
|
Other property related revenue
|
-
|
128,109
|
128,109
|
|||
|
Dividends
|
||||||
|
Wholly-owned subsidiaries
|
2,178,000
|
(2,178,000)
|
(CC)
|
-
|
||
|
Unaffiliated issuers (net of $2,270 foreign tax withholding)
|
259,401
|
(259,401)
|
(DD)
|
-
|
||
|
Total investment income / Total revenue
|
2,437,401
|
3,979,860
|
(2,437,401)
|
3,979,860
|
||
|
Expenses
|
||||||
|
Property operating expenses
|
-
|
1,313,489
|
1,313,489
|
|||
|
Compensation and benefits
|
778,843
|
463,870
|
1,242,713
|
|||
|
Depreciation and amortization
|
-
|
711,095
|
711,095
|
|||
|
Professional services
|
-
|
268,989
|
(EE)
|
268,989
|
||
|
General and administrative
|
-
|
27,825
|
165,893
|
(FF)
|
193,718
|
|
|
Legal
|
190,768
|
(190,768)
|
(EE)
|
-
|
||
|
Occupancy and other office expenses
|
110,396
|
(110,396)
|
(FF)
|
-
|
||
|
Bookkeeping and pricing
|
84,123
|
(84,123)
|
(GG)
|
-
|
||
|
Directors
|
39,236
|
(39,236)
|
(EE)
|
-
|
||
|
Auditing
|
38,985
|
(38,985)
|
(EE)
|
-
|
||
|
Stockholder communications
|
24,607
|
(24,607)
|
(FF)
|
-
|
||
|
Transfer agent
|
14,600
|
(14,600)
|
(FF)
|
-
|
||
|
Insurance
|
13,630
|
(13,630)
|
(FF)
|
-
|
||
|
Custodian
|
9,815
|
(9,815)
|
(GG)
|
-
|
||
|
Interest on bank credit facility
|
3,395
|
(3,395)
|
(GG)
|
-
|
||
|
Other
|
2,660
|
(2,660)
|
(FF)
|
-
|
||
|
Total expenses
|
1,311,058
|
2,516,279
|
(97,333)
|
3,730,004
|
||
|
Net investment income / Income from operations
|
1,126,343
|
1,463,581
|
(2,340,068)
|
249,856
|
||
|
Realized and Unrealized Gain (Loss) / Other Income
|
||||||
|
Dividend income
|
259,401
|
(DD)
|
259,401
|
|||
|
Net realized gain on investments in unaffiliated issuers
|
1,505,832
|
1,505,832
|
||||
|
Net unrealized appreciation
|
||||||
|
Wholly-owned subsidiaries
|
3,092,500
|
(3,092,500)
|
(HH)
|
-
|
||
|
Unaffiliated issuers
|
364,113
|
(364,113)
|
(HH)
|
-
|
||
|
Net realized and unrealized gain / Other income
|
4,962,445
|
-
|
(3,456,613)
|
1,505,832
|
||
|
Net increase in net assets resulting from operations / Net income before taxes
|
6,088,788
|
1,463,581
|
(5,796,681)
|
1,755,688
|
||
|
Income taxes
|
-
|
27,582
|
27,582
|
|||
|
Net increase in net assets resulting from operations / Net income
|
$ 6,088,788
|
$ 1,435,999
|
$ (5,796,681)
|
$ 1,728,106
|
||
|
ADJUSTMENTS TO UNAUDITED PRO FORMA STATEMENT OF OPERATIONS
|
|||||||||
|
(AA)
|
Historical Statement of Operations. Represents the historical statement of operations of the Company for the year ended December 31, 2014.
|
||||||||
|
(BB)
|
Represents the combined income statements of the Company's wholly-owned subsidiaries for the year ended December 31, 2014.
|
||||||||
|
Combined
|
|||||||||
|
Income Statements
|
SSG Bolingbrook LLC
|
SSG Dolton LLC
|
SSG Merrillville LLC
|
SSG Rochester LLC
|
SSG Sadsbury LLC
|
SSG Summerville I LLC
|
SSG Summerville II LLC
|
||
|
Revenue
|
|||||||||
|
Rental revenue
|
$ 3,851,751
|
$ 673,951
|
$ 650,736
|
$ 570,844
|
$ 825,962
|
$ 538,554
|
$ 374,188
|
$ 217,516
|
|
|
Other property related revenue
|
128,109
|
17,129
|
27,519
|
17,415
|
32,745
|
19,812
|
9,263
|
4,226
|
|
|
Total revenue
|
3,979,860
|
691,080
|
678,255
|
588,259
|
858,707
|
558,366
|
383,451
|
221,742
|
|
|
Expenses
|
|||||||||
|
Compensation and benefits
|
463,870
|
61,670
|
48,748
|
54,252
|
108,202
|
104,136
|
68,424
|
18,438
|
|
|
Property operating expenses
|
1,313,489
|
214,672
|
206,163
|
126,289
|
358,819
|
176,333
|
146,245
|
84,968
|
|
|
Depreciation and amortization
|
711,095
|
153,986
|
139,392
|
133,896
|
83,818
|
86,468
|
69,573
|
43,962
|
|
|
General and administrative
|
27,825
|
1,342
|
722
|
76
|
5,396
|
19,407
|
608
|
274
|
|
|
Total expenses
|
2,516,279
|
431,670
|
395,025
|
314,513
|
556,235
|
386,344
|
284,850
|
147,642
|
|
|
Net income before taxes
|
1,463,581
|
259,410
|
283,230
|
273,746
|
302,472
|
172,022
|
98,601
|
74,100
|
|
|
Income taxes
|
27,582
|
-
|
-
|
24,210
|
-
|
-
|
2,023
|
1,349
|
|
|
Net income
|
$ 1,435,999
|
$ 259,410
|
$ 283,230
|
$ 249,536
|
$ 302,472
|
$ 172,022
|
$ 96,578
|
$ 72,751
|
|
|
(CC)
|
Represents the adjustment to eliminate the dividends paid to the Company by its wholly-owned subsidiaries.
|
||||||||
|
(DD)
|
Represents the reclassification of dividend income to Other Income (Expense) from revenue.
|
||||||||
|
(EE)
|
Represents the reclassification of the following historical expenses of the Company incurred for the year ended December 31, 2014 to professional.
|
||||||||
|
Professional
|
268,989
|
||||||||
|
Legal
|
190,768
|
||||||||
|
Directors
|
39,236
|
||||||||
|
Auditing
|
38,985
|
||||||||
|
(FF)
|
Represents the reclassification of the following historical expenses of the Company incurred for the year ended December 31, 2014 to general and administrative.
|
||||||||
|
General and administrative
|
165,893
|
||||||||
|
Occupancy and other office expenses
|
110,396
|
||||||||
|
Stockholder communications
|
24,607
|
||||||||
|
Transfer agent
|
14,600
|
||||||||
|
Insurance
|
13,630
|
||||||||
|
Other
|
2,660
|
||||||||
|
(GG)
|
Represents the adjustment to eliminate the expenses which are attributable to the Company operating as a registered investment company.
|
||||||||
|
(HH)
|
Represents the adjustment to net unrealized appreciation to remove the income statement effect that was previously recorded by the Company under its existing accounting policy, assuming that the combined entity had followed historical cost basis of
|
||||||||
|
accounting for the period. Available-for-sale securities would have been accounted for at fair value with unrealized changes in fair value recorded as a separate component of comprehensive income, a component of stockholder's equity.
|
|||||||||