Giovanni Caruso Partner
345
Park Avenue |
Direct 212.407.4866 Main 212.407.4000 Fax 212.937.3943 gcaruso@loeb.com | |
Via Edgar |
July 2, 2018
Mara L. Ransom 100 F Street, NE Washington, D.C. 20549 |
Re: | Atlantic Acquisition Corp. |
Amendment No. 2 to Preliminary Proxy Statement on Schedule 14A
Filed June 15, 2018
File No. 001-38180
Dear Ms. Ransom:
On behalf of our client, Atlantic Acquisition Corp. (the “Company”), we hereby provide a response to the oral comment provided on June 28, 2018 (the “Staff’s Comment”) regarding the Company’s Preliminary Proxy Statement on Schedule 14A (the “Proxy Statement”).
The Staff requested information about how the Company calculated equivalent pro-forma earnings per share and requested that disclosure about equivalent pro-forma book value per share be added to the disclosure.
Calculation for equivalent pro forma net earnings per share
Prior to January 1, 2018, some of HF Group’s subsidiaries have elected under the Internal Revenue Code to be S corporations and some were formed as partnerships. As of January 1, 2018, all of these entities have been converted to C corporations and will be subject to regular corporate income tax rates going forward.
Equivalent pro forma net earnings per share for HF Group was calculated by multiplying the share exchange ratio between Atlantic and HF Group (approximately 1/200=100,000/19,969,833) by pro forma income per share of HF Group after considering adjustments reflecting income tax expenses as if such entities were taxed as a C Corporation (the adjustment for the three months ended March 31, 2018 is 0).
Equivalent pro forma net earnings per share for HF Group for three months ended March 31, 2018=1/200 (share exchange ratio) * $13.48 (equal to the historical income per share of HF Group (which does not include any adjustments for taxes as the entities were already converted to “C” Corporations)) = $0.07.
Los Angeles New York Chicago Nashville Washington, DC Beijing Hong Kong www.loeb.com
For the United States offices, a limited liability partnership including professional corporations. For Hong Kong office, a limited liability partnership.
July 2, 2018 Page 2 |
Equivalent pro forma net earnings per share for HF Group for the year ended December 31, 2017=1/200(share exchange ratio) * $62.06 (pro forma income per share of HF Group with tax adjustment for C Corporation, which equals $9,646,071 of net income, less $3,439,857 of tax adjustment, and then divided by 100,000 of HF Group’s historical outstanding shares) = $0.31.
The numbers and explanation notes on page 63, 64, 67 and 68 were revised accordingly and are reproduced as Exhibit A attached hereto.
Equivalent pro forma book value per share
Equivalent pro forma book value per share of HF Group was calculated by multiplying the share exchange ratio between Atlantic and HF Group (approximately 1/200) by pro forma book value per share of HF Group.
Equivalent pro forma book value per share for HF Group as of March 31, 2018=1/200(share exchange ratio) * $269.75 (equals to historical book value per share of HF Group) = $1.35.
The numbers and explanation notes on page 64 and 66 were revised accordingly and are reproduced as Exhibit A attached hereto.
Please call me at 212 407-4866 if you would like additional information with respect to any of the foregoing. Thank you.
Sincerely,
/s/ Giovanni Caruso
Giovanni Caruso
Partner
Exhibit A
SELECTED UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION
Atlantic Acquisition Corp. Historical | HF Group Holding Corporation Historical | (1) Pro Forma Unaudited, Combined Assuming Maximum Conversion |
(2) Pro Forma Unaudited, Combined Assuming No Conversion |
|||||||||||||
Three Months ended March 31, 2018 | ||||||||||||||||
Net revenue | $ | — | $ | 74,580,771 | $ | 74,580,771 | $ | 74,580,771 | ||||||||
Gross profit | $ | — | $ | 12,104,066 | $ | 12,104,066 | $ | 12,104,066 | ||||||||
Net (Loss) income attributable to common stock holders | $ | (118,230 | ) | $ | 1,347,950 | $ | 1,229,720 | $ | 1,328,779 | |||||||
Net (loss) income per share - basic and diluted | $ | (0.06 | ) | 13.48 | $ | 0.05 | $ | 0.05 | ||||||||
Equivalent pro forma earnings per share – basic and diluted (1) | 0.07 | |||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||
Net revenue | $ | — | $ | 295,549,980 | $ | 295,549,980 | $ | 295,549,980 | ||||||||
Gross profit | $ | — | $ | 43,934,967 | $ | 43,934,967 | $ | 43,934,967 | ||||||||
Net (Loss) income attributable to common stock holders | $ | (75,729 | ) | $ | 9,646,071 | $ | 9,570,342 | $ | 9,700,985 | |||||||
Net (loss) income per share - basic and diluted | $ | (0.06 | ) | 96.46 | $ | 0.43 | $ | 0.37 | ||||||||
Equivalent pro forma earnings per share – basic and diluted (1) | $ | $ | *0.31 | $ | ||||||||||||
As of March 31, 2018 | ||||||||||||||||
Cash | $ | 444,634 | $ | 5,864,289 | $ | 10,355,753 | $ | 50,120,928 | ||||||||
Total assets | $ | 45,922,722 | $ | 79,815,826 | $ | 84,367,123 | $ | 124,132,298 | ||||||||
Total liabilities | $ | 1,157,546 | $ | 51,801,239 | $ | 51,852,535 | $ | 51,852,535 | ||||||||
Total shareholders’ equity | $ | 5,000,001 | $ | 28,014,587 | $ | 32,514,588 | $ | 72,279,763 |
(1) | Prior to January 1, 2018, some of HF Group’s subsidiaries have elected under the Internal Revenue Code to be S corporations and some were formed as partnerships. As of January 1, 2018, all of these entities have been converted to C corporations and will be subject to regular corporate income tax rates going forward. Equivalent pro forma net earnings per share for HF Group was calculated with multiplying the share exchange ratio between Atlantic and HF Group (approximately 1/200) by pro forma income per share of HF Group after considering adjustments reflecting income tax expenses as if such entities were taxed as a C Corporation (the adjustment for the three months ended March 31, 2018 is 0). |
Los Angeles New York Chicago Nashville Washington, DC Beijing Hong Kong www.loeb.com
For the United States offices, a limited liability partnership including professional corporations. For Hong Kong office, a limited liability partnership.
COMPARATIVE PER SHARE DATA
Atlantic Acquisition Corp. Historical | HF Group Holding Corporation Historical | (1) Pro Forma Unaudited, Combined Assuming Maximum Conversion |
(2) Pro Forma Unaudited, Combined Assuming No Conversion |
|||||||||||||
Three Months ended March 31, 2018 | ||||||||||||||||
Net (Loss) income attributable to common stock holders | $ | (118,230 | ) | $ | 1,347,950 | $ | 1,229,720 | $ | 1,328,779 | |||||||
Weighted Average Shares Outstanding — Basic and Diluted | 1,996,450 | 100,000 | 22,442,908 | 26,318,955 | ||||||||||||
(Loss) Income or Pro Forma Earnings Per Share – Basic and Diluted | $ | (0.06 | ) | 13.48 | $ | 0.05 | $ | 0.05 | ||||||||
Equivalent pro forma earnings per share – basic and diluted (1) | 0.07 | |||||||||||||||
Year ended December 31, 2017 | ||||||||||||||||
Net (Loss) income attributable to common stock holders | $ | (75,729 | ) | $ | 9,646,071 | $ | 9,570,342 | $ | 9,700,985 | |||||||
Weighted Average Shares Outstanding — Basic and Diluted | 1,368,301 | 100,000 | 22,434,295 | 26,318,955 | ||||||||||||
(Loss) Income or Pro Forma Earnings Per Share – Basic and Diluted | $ | (0.06 | ) | $ | 96.46 | $ | 0.43 | $ | 0.37 | |||||||
Equivalent Pro Forma Earnings Per Share – Basic and Diluted (1) | $ | $ | 0.31 | $ | ||||||||||||
As of March 31, 2018 | ||||||||||||||||
Shares Outstanding as of March 31, 2018 | 1,996,450 | 100,000 | 22,442,908 | 26,318,955 | ||||||||||||
Book Value Per Share or Pro Forma Book Value Per Share (2) | $ | 2.50 | $ | 269.75 | $ | 1.45 | $ | 2.75 | ||||||||
Equivalent Pro Forma Book Value Per Share as of March 31, 2018(2) (3) | 1.35 |
(1) | Prior to January 1, 2018, some of HF Group’s subsidiaries have elected under the Internal Revenue Code to be S corporations and some were formed as partnerships. As of January 1, 2018, all of these entities have been converted to C corporations and will be subject to regular corporate income tax rates going forward. Equivalent pro forma net earnings per share of HF Group was calculated with multiplying the share exchange ratio between Atlantic and HF Group (approximately 1/200) by pro forma income per share of HF Group after considering adjustments reflecting income tax expenses as if such entities were taxed as a C Corporation (the adjustment for the three months ended March 31, 2018 is 0). |
(2) | The equity of noncontrolling interest was excluded from the calculation of book value per share related to HF Group Holding Corporation and pro forma book value per share after merger because it was not attributable to the common stockholders of HF Group Holding Corporation before the business combination and will not be attributable to HF Foods Group Inc. (formerly Atlantic Acquisition Corp.) after the business combination, but will be attributable to the minority shareholders of one of the Group’s subsidiaries. |
(3) | Equivalent pro forma book value per share of HF Group was calculated with multiplying the share exchange ratio between Atlantic and HF Group (approximately 1/200) by pro forma book value per share of HF Group. |
UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL STATEMENTS
HF Foods Group Inc.
(formerly Atlantic Acquisition Corp.)
Pro Forma Condensed Combined Balance Sheet
As of March 31, 2018
(Unaudited)
Atlantic Acquisition Corp. Historical Audited |
HF Group Holding Corporation Historical Audited |
Adjustment for Merger Assuming Conversion |
(1) Pro Forma Assuming Conversion |
Adjustment for Merger Assuming No Conversion | (2) Pro Forma Assuming No Conversion |
|||||||||||||||||||
ASSET | ||||||||||||||||||||||||
Current assets: | ||||||||||||||||||||||||
Cash | $ | 444,634 | $ | 5,864,289 | $ | 45,418,255 | (a) | $ | 10,355,753 | $ | 45,418,255 | (a) | $ | 50,120,928 | ||||||||||
(39,765,175 | )(b) | (1,106,250 | )(f) | |||||||||||||||||||||
(1,106,250 | )(f) | (500,000 | )(g) | |||||||||||||||||||||
(500,000 | )(g) | |||||||||||||||||||||||
Accounts receivable, net | — | 15,373,300 | — | 15,373,300 | — | 15,373,300 | ||||||||||||||||||
Accounts receivable - related parties, net | — | 1,535,647 | — | 1,535,647 | — | 1,535,647 | ||||||||||||||||||
Inventories, net | — | 22,411,921 | — | 22,411,921 | — | 22,411,921 | ||||||||||||||||||
Advances to suppliers, net | — | 495,118 | — | 495,118 | — | 495,118 | ||||||||||||||||||
Advances to suppliers - related parties, net | — | 2,377,471 | — | 2,377,471 | — | 2,377,471 | ||||||||||||||||||
Other current assets | 59,833 | 383,671 | — | 443,504 | — | 443,504 | ||||||||||||||||||
Total current assets | 504,467 | 48,441,417 | 4,046,830 | 52,992,714 | 43,812,005 | 92,757,889 | ||||||||||||||||||
Property and equipment, net | — | 22,563,065 | — | 22,563,065 | — | 22,563,065 | ||||||||||||||||||
Long-term notes receivables | — | 2,112,477 | — | 2,112,477 | — | 2,112,477 | ||||||||||||||||||
Long-term notes receivables - related parties | — | 6,618,472 | — | 6,618,472 | — | 6,618,472 | ||||||||||||||||||
Other long-term assets | — | 80,395 | — | 80,395 | — | 80,395 | ||||||||||||||||||
Cash and investments held in trust account | 45,418,255 | — | (45,418,255 | )(a) | — | (45,418,255 | )(a) | — | ||||||||||||||||
Total assets | $ | 45,922,722 | $ | 79,815,826 | $ | (41,371,425 | ) | $ | 84,367,123 | $ | (1,606,250 | ) | $ | 124,132,298 | ||||||||||
LIABILITIES AND STOCKHOLDER’S EQUITY | ||||||||||||||||||||||||
Current liabilities: | ||||||||||||||||||||||||
Lines of credit | $ | — | $ | 11,194,146 | $ | — | $ | 11,194,146 | $ | — | $ | 11,194,146 | ||||||||||||
Accounts payable | 30,034 | 18,504,323 | 18,534,357 | 18,534,357 | ||||||||||||||||||||
Accounts payable - related parties | — | 3,158,647 | — | 3,158,647 | — | 3,158,647 | ||||||||||||||||||
Advance from customers | — | 42,221 | — | 42,221 | — | 42,221 | ||||||||||||||||||
Advance from customers - related parties | — | 154,143 | — | 154,143 | — | 154,143 | ||||||||||||||||||
Current portion of long-term debt, net | — | 1,330,746 | — | 1,330,746 | — | 1,330,746 | ||||||||||||||||||
Current portion of obligations under capital leases | — | 434,003 | — | 434,003 | — | 434,003 | ||||||||||||||||||
Income tax payable | — | 1,019,293 | — | 1,019,293 | — | 1,019,293 | ||||||||||||||||||
Shareholder distribution payable | — | 958,174 | — | 958,174 | — | 958,174 | ||||||||||||||||||
Deferred underwriting compensation | 1,106,250 | — | (1,106,250 | )(f) | — | (1,106,250 | )(f) | — | ||||||||||||||||
Accrued expense and other current liabilities | 21,262 | 515,937 | — | 537,199 | — | 537,199 | ||||||||||||||||||
Total current liabilities | 1,157,546 | 37,311,633 | (1,106,250 | ) | 37,362,929 | (1,106,250 | ) | 37,362,929 | ||||||||||||||||
Long-term debt | — | 14,041,019 | — | 14,041,019 | — | 14,041,019 | ||||||||||||||||||
Obligations under capital leases, non-current | — | 15,771 | — | 15,771 | — | 15,771 | ||||||||||||||||||
Deferred tax liabilities | — | 432,816 | — | 432,816 | — | 432,816 | ||||||||||||||||||
Total liabilities | 1,157,546 | 51,801,239 | (1,106,250 | ) | 51,852,535 | (1,106,250 | ) | 51,852,535 | ||||||||||||||||
Commitments and contingencies | ||||||||||||||||||||||||
Redeemable common stock | 39,765,175 | — | (39,765,175 | )(b) | — | (39,765,175 | )(b) | — | ||||||||||||||||
Stockholder’s equity | ||||||||||||||||||||||||
Preferred Stock | — | — | — | — | — | — | ||||||||||||||||||
Common stock | 200 | — | 1,997 | (d) | 2,244 | 388 | (b) | 2,632 | ||||||||||||||||
48 | (e) | 1,997 | (d) | |||||||||||||||||||||
48 | (e) | |||||||||||||||||||||||
Additional paid-in capital | 4,964,758 | 21,551,700 | 35,043 | (c) | 26,049,457 | 39,764,787 | (b) | 65,814,244 | ||||||||||||||||
(1,997 | )(d) | 35,043 | (c) | |||||||||||||||||||||
(48 | )(e) | (1,997 | )(d) | |||||||||||||||||||||
(500,000 | )(g) | (48 | )(e) | |||||||||||||||||||||
(500,000 | )(g) | |||||||||||||||||||||||
Retained earnings | 35,043 | 5,423,074 | (35,043 | )(c) | 5,423,074 | (35,043 | )(c) | 5,423,074 | ||||||||||||||||
Noncontrolling interest | — | 1,039,813 | — | 1,039,813 | — | 1,039,813 | ||||||||||||||||||
Total stockholders’ equity | 5,000,001 | 28,014,587 | (500,000 | ) | 32,514,588 | 39,265,175 | 72,279,763 | |||||||||||||||||
Total liabilities and stockholder’s equity | $ | 45,922,722 | $ | 79,815,826 | $ | (41,371,425 | ) | $ | 84,367,123 | $ | (1,606,250 | ) | $ | 124,132,298 | ||||||||||
Shares Outstanding as of March 31, 2018 | 1,996,450 | 100,000 | 22,442,908 | 26,318,955 | ||||||||||||||||||||
Book Value Per Share or Pro Forma Book Value Per Share as of March 31, 2018(1) | $ | 2.50 | $ | 269.75 | $ | 1.45 | $ | 2.75 | ||||||||||||||||
Equivalent Pro Forma Book Value Per Share as of March 31, 2018(2) | 1.35 |
(1) | The equity of noncontrolling interest was excluded from the calculation of book value per share related to HF Group Holding Corporation and pro forma book value per share after merger because it was not attributable to the common stockholders of HF Group Holding Corporation before the business combination and will not be attributable to HF Foods Group Inc. (formerly Atlantic Acquisition Corp.) after the business combination, but will be attributable to the minority shareholders of one of the Group’s subsidiaries. | |
(2) | Equivalent pro forma book value per share of HF Group was calculated with multiplying the share exchange ratio between Atlantic and HF Group (approximately 1/200) by pro forma book value per share of HF Group. |
HF Foods Group Inc.
(formerly Atlantic Acquisition Corp.)
Pro Forma Condensed Combined Income Statement
For the Three Months ended March 31, 2018
(Unaudited)
Atlantic Acquisition Corp. Historical Audited | HF Group Holding Corporation Historical Audited | Adjustment for Merger Assuming Maximum Conversion | (1) Pro Forma Combined Conversion | Adjustment for Merger Assuming No Conversion | (2) Pro Forma Combined No Conversion | |||||||||||||||||||
Net revenue - third parties | $ | — | $ | 69,875,910 | $ | — | $ | 69,875,910 | $ | — | $ | 69,875,910 | ||||||||||||
Net revenue - related parties | — | 4,704,861 | — | 4,704,861 | — | 4,704,861 | ||||||||||||||||||
Total net revenue | — | 74,580,771 | — | 74,580,771 | — | 74,580,771 | ||||||||||||||||||
Cost of revenue | — | 62,476,705 | — | 62,476,705 | — | 62,476,705 | ||||||||||||||||||
Gross profit | — | 12,104,066 | — | 12,104,066 | — | 12,104,066 | ||||||||||||||||||
Distribution, selling and administrative expenses | 153,521 | 10,072,612 | — | 10,226,133 | — | 10,226,133 | ||||||||||||||||||
Income from operations | (153,521 | ) | 2,031,454 | — | 1,877,933 | — | 1,877,933 | |||||||||||||||||
Interest income | 134,350 | 6,875 | — | 141,225 | — | 141,225 | ||||||||||||||||||
Interest expenses and bank charges | — | (405,563 | ) | — | (405,563 | ) | — | (405,563 | ) | |||||||||||||||
Other income | — | 257,190 | — | 257,190 | — | 257,190 | ||||||||||||||||||
Income before income tax provision | (19,171 | ) | 1,889,956 | — | 1,870,785 | — | 1,870,785 | |||||||||||||||||
Income tax provision | — | 503,481 | — | 503,481 | — | 503,481 | ||||||||||||||||||
Net income | $ | (19,171 | ) | $ | 1,386,475 | $ | — | $ | 1,367,304 | $ | — | $ | 1,367,304 | |||||||||||
Less: income attributable to common stock subject to redemption | 99,059 | — | — | 99,059 | (99,059 | )(h) | — | |||||||||||||||||
Less: net income attributable to noncontrolling interest | — | 38,525 | — | 38,525 | — | 38,525 | ||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | (118,230 | ) | $ | 1,347,950 | $ | — | $ | 1,229,720 | $ | 99,059 | $ | 1,328,779 | |||||||||||
Weighted Average Shares Outstanding — Basic and Diluted | 1,996,450 | 100,000 | 22,442,908 | 26,318,955 | ||||||||||||||||||||
(Loss) Income or Pro Forma Earnings Per Share – Basic and Diluted | $ | (0.06 | ) | $ | 13.48 | $ | 0.05 | $ | 0.05 | |||||||||||||||
(Loss) Income or Equivalent Pro Forma Earnings Per Share – Basic and Diluted (1) | 0.07 |
(1) | Prior to January 1, 2018, some of HF Group’s subsidiaries have elected under the Internal Revenue Code to be S corporations and some were formed as partnerships. As of January 1, 2018, all of these entities have been converted to C corporations and will be subject to regular corporate income tax rates going forward. Equivalent pro forma net earnings per share of HF Group was calculated with multiplying the share exchange ratio between Atlantic and HF Group (approximately 1/200) by pro forma income per share of HF Group after considering adjustment reflecting income tax expenses as if such entities were taxed as a C Corporation (the adjustment for the three months ended March 31, 2018 is 0). |
HF Foods Group Inc.
(formerly Atlantic Acquisition Corp.)
Pro Forma Condensed Combined Income Statement
For the Year ended December 31, 2017
(Unaudited)
Atlantic Acquisition Corp. Historical Audited | HF Group Holdings Corporation Historical Audited | Adjustment for Merger Assuming Maximum Conversion | (1) Pro Forma Unaudited, Combined Assuming Maximum Conversion | Adjustment for Merger Assuming No Conversion | (2) Pro Forma Unaudited, Combined Assuming No Conversion | |||||||||||||||||||
Net revenue - third parties | $ | — | $ | 277,100,116 | $ | — | $ | 277,100,116 | $ | — | $ | 277,100,116 | ||||||||||||
Net revenue - related parties | — | 18,449,864 | — | 18,449,864 | — | 18,449,864 | ||||||||||||||||||
Total net revenue | — | 295,549,980 | — | 295,549,980 | — | 295,549,980 | ||||||||||||||||||
Cost of revenue | — | 251,615,013 | — | 251,615,013 | — | 251,615,013 | ||||||||||||||||||
Gross profit | — | 43,934,967 | — | 43,934,967 | — | 43,934,967 | ||||||||||||||||||
Distribution, selling and administrative expenses | 128,271 | 32,924,877 | — | 33,053,148 | — | 33,053,148 | ||||||||||||||||||
Income from operations | (128,271 | ) | 11,010,090 | — | 10,881,819 | — | 10,881,819 | |||||||||||||||||
Interest income | 183,185 | 21,105 | — | 204,290 | — | 204,290 | ||||||||||||||||||
Interest expenses and bank charges | — | (1,339,897 | ) | — | (1,339,897 | ) | — | (1,339,897 | ) | |||||||||||||||
Other income | — | 1,010,038 | — | 1,010,038 | — | 1,010,038 | ||||||||||||||||||
Income before income tax provision | 54,914 | 10,701,336 | — | 10,756,250 | — | 10,756,250 | ||||||||||||||||||
Income tax provision | — | 623,266 | — | 623,266 | — | 623,266 | ||||||||||||||||||
Net income | $ | 54,914 | $ | 10,078,070 | $ | — | $ | 10,132,984 | $ | — | $ | 10,132,984 | ||||||||||||
Less: income attributable to common stock subject to redemption | 130,643 | — | — | 130,643 | (130,643 | )(h) | — | |||||||||||||||||
Less: net income attributable to noncontrolling interest | — | 431,999 | — | 431,999 | — | 431,999 | ||||||||||||||||||
Net income (loss) attributable to common stockholders | $ | (75,729 | ) | $ | 9,646,071 | $ | — | $ | 9,570,342 | $ | 130,643 | $ | 9,700,985 | |||||||||||
Net income | $ | 54,914 | $ | 10,078,070 | $ | — | $ | 10,132,984 | $ | — | $ | 10,132,984 | ||||||||||||
Less: pro forma adjustment to reflect income tax expenses if taxed under C Corporation (1) | — | 3,439,857 | — | 3,439,857 | — | 3,439,857 | ||||||||||||||||||
Less: income attributable to common stock subject to redemption | 130,643 | — | — | 130,643 | (130,643 | )(h) | — | |||||||||||||||||
Less: net income attributable to noncontrolling interest | — | 431,999 | — | 431,999 | — | 431,999 | ||||||||||||||||||
Net income (loss) used to compute equivalent pro forma net earnings per share | $ | (75,729 | ) | $ | 6,206,214 | $ | — | $ | 6,130,485 | $ | 130,643 | $ | 6,261,128 | |||||||||||
Weighted Average Shares Outstanding — Basic and Diluted | 1,368,301 | 100,000 | 22,434,295 | 26,318,955 | ||||||||||||||||||||
(Loss) Income or Pro Forma Earnings Per Share – Basic and Diluted | $ | (0.06 | ) | $ | 96.46 | $ | 0.43 | $ | 0.37 | |||||||||||||||
Equivalent Pro Forma Earnings Per Share – Basic and Diluted (1) | $ | $ | 0.31 | $ | $ |
(1) | Prior to January 1, 2018, some of HF Group’s subsidiaries have elected under the Internal Revenue Code to be S corporations and some were formed as partnerships. As of January 1, 2018, all of these entities have been converted to C corporations and will be subject to regular corporate income tax rates going forward. Equivalent pro forma net earnings per share of HF Group was calculated with multiplying the share exchange ratio between Atlantic and HF Group (approximately 1/200) by pro forma income per share of HF Group after considering adjustment reflecting income tax expenses as if such entities were taxed as a C Corporation. |