Exhibit 99.2
 
STAR TRANSPORTATION,  INC.
BALANCE SHEET
JUNE 30, 2006
(In thousands, except share data)
 
   
6/30/06
(unaudited)
 
ASSETS
     
Current assets:
     
Cash and cash equivalents
 
$
11,246
 
Accounts receivable, net of allowance of $115 at June 30, 2006
  and $132 at June 30, 2005
   
9,806
 
Driver advances and other receivables
   
107
 
Inventory and supplies
   
39
 
Prepaid expenses
   
1,334
 
Deferred income taxes
   
106
 
Total current assets
 
$
22,638
 
         
Net property and equipment
   
51,889
 
         
Other assets, net
   
705
 
         
Total assets
 
$
75,232
 
LIABILITIES AND STOCKHOLDERS' EQUITY
       
Current liabilities:
       
Current maturities of long-term debt
 
$
5,881
 
Accounts payable
   
2,401
 
Accrued expenses
   
2,695
 
Insurance and claims accrual
   
2,499
 
Total current liabilities
   
13,476
 
         
Long-term debt, less current maturities
   
33,469
 
Deferred income taxes
   
1,061
 
Total liabilities
   
48,006
 
         
         
Stockholders' equity:
       
Common stock, no par value; 10,000 shares authorized, 4,640 shares issued
and outstanding
   
1
 
Retained earnings
   
26,842
 
Accumulated other comprehensive income (loss)
   
383
 
Total stockholders' equity
   
27,226
 
Total liabilities and stockholders' equity
 
$
75,232
 





 
STAR TRANSPORTATION, INC.
STATEMENTS OF OPERATIONS
PERIODS ENDED JUNE 30, 2006 AND JUNE 30, 2005
(In thousands)
 
   
6/30/06
(unaudited)
 
6/30/05
(unaudited)
 
Revenues
         
Freight revenue
 
$
46,139
 
$
42,345
 
Fuel surcharges
   
7,296
   
4,110
 
Total revenue
   
53,435
   
46,455
 
             
Operating expenses:
             
Salaries, wages, and related expenses
   
19,812
   
19,275
 
Fuel expense & maintenance
   
18,084
   
13,575
 
Revenue equipment rentals and purchased
transportation
   
1,613
   
2,832
 
Operating taxes and licenses
   
1,003
   
1,091
 
Insurance and claims
   
2,361
   
2,181
 
Communications and utilities
   
484
   
416
 
General supplies and expenses
   
1,564
   
1,238
 
Depreciation and amortization, including gains (losses) on
    disposition of equipment
   
3,606
   
2,426
 
Total operating expenses
   
48,527
   
43,034
 
Operating income
   
4,908
   
3,421
 
               
Other (income) expenses:
             
Interest expense
   
843
   
454
 
Interest income
   
(154
)
 
(16
) 
Other
   
-
   
101
 
Other expenses, net
   
689
   
539
 
               
Income before income taxes
   
4,219
   
2,882
 
Income tax expense
   
274
   
187
 
Net income
 
$
3,945
 
$
2,695
 
               
 

 
STAR TRANSPORTATION, INC.
CONDENSED STATEMENTS OF CASH FLOWS
FOR THE SIX MONTHS ENDED JUNE 30, 2006 AND 2005
(In thousands)

   
Six months ended June 30,
(unaudited)
 
           
   
2006
 
2005
 
Cash flows from operating activities:
         
Net income
 
$
3,945
 
$
2,695
 
Adjustments to reconcile net income to net cash provided by operating activities:
             
Provision for losses (recoveries) on accounts receivable
   
(5
)
 
11
 
Depreciation and amortization
   
3,577
   
2,425
 
Net loss on disposition of property and equipment
   
29
   
1
 
Changes in operating assets and liabilities:
             
Receivables and advances
   
67
   
(906
)
Prepaid expenses and other assets
   
5
   
87
 
Accounts payable and accrued expenses
   
1,556
   
2,301
 
Net cash flows provided by operating activities
   
9,174
   
6,614
 
               
Cash flows from investing activities:
             
Acquisition of property and equipment
   
(12,318
)
 
(13,264
)
Net cash flows used in investing activities
   
(12,318
)
 
(13,264
)
               
Cash flows from financing activities:
             
Proceeds from issuance of debt
   
12,949
   
10,084
 
Repayments of debt
   
(2,942
)
 
(2,018
)
Dividends paid to stockholders
   
(190
)
 
-
 
Net cash provided by financing activities
   
9,817
   
8,066
 
               
Net change in cash and cash equivalents
   
6,673
   
1,416
 
               
Cash and cash equivalents at beginning of period
   
4,573
   
1,481
 
               
Cash and cash equivalents at end of period
 
$
11,246
 
$
2,897
 

 


STAR TRANSPORTATION, INC.
NOTES TO THE FINANCIAL STATEMENTS
JUNE 30, 2006 AND 2005
(Unaudited)

Note 1.     Basis of Presentation

Star Transportation, Inc. (the "Company") is a truckload carrier based in Nashville, Tennessee serving customers throughout the continental Untied States.

The financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America, pursuant to the rules and regulations of the Securities and Exchange Commission. In the opinion of management, the accompanying financial statements include all adjustments which are necessary for a fair presentation of the results for the interim periods presented, such adjustments being of a normal recurring nature. Certain information and footnote disclosures have been omitted pursuant to such rules and regulations. The December 31, 2005 balance sheet was derived from our audited balance sheet as of that date. These financial statements and notes thereto should be read in conjunction with the financial statements and notes thereto included for the year ended December 31, 2005 included in this Form 8-K/A.

Certain prior period financial statement balances have been reclassified to conform to the current period’s classification.


Note 2.     Property and Equipment

A summary of property and equipment, net as of June 30, 2006 is as follows:


(in thousands)
 
 
 
       
       
Land
 
$
1,094
 
Buildings and improvements
   
3,986
 
Revenue equipment
   
68,312
 
Computer equipment
   
1,807
 
Furniture and fixtures
   
380
 
Automobiles
   
375
 
     
75,954
 
Accumulated depreciation
   
(24,065
)
   
$
51,889
 

In the normal course of business, management expects to purchase or lease significant amounts of new equipment each year.
 
 
Note 3.     Long-Term Debt

Our long-term debt consisted of the following at June 30, 2006:

(in thousands)
 
 
 
       
       
Installment notes payable with banks, weighted average
  interest rate of 6.02% at June 30, 2006, due in monthly
  installments with final maturities at various dates
  through September 2010, secured by related revenue
  equipment
 
$
39,350
 
     
39,350
 
Less current maturities
   
(5,881
)
Long-term debt, less current maturities
 
$
33,469
 

 
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