Sales

COGS
Beg. Inv.
Purchases
Ending Inv.
Total COGS
Gross Profit
Operating Expenses
EBIT
Interest Exp.
Pretax Income
Taxes
Net Profit

1993
2,921,000

1994
3,477,000

1995 % of Sales
4,519,000

330,000
2,209,000
2,539,000
337,000
2,202,000

337,000
2,729,000
3,066,000
432,000
2,634,000

432,000
3,579,000
4,011,000
587,000
3,424,000

719,000
622,000
97,000
23,000
74,000
14,000
60,000

843,000
717,000
126,000
42,000
84,000
16,000
68,000

1,095,000
940,000
155,000
56,000
99,000
22,000
77,000

1996

Estimate

Sales
COGS
Beg. Inv.
Purchases
Ending Inv.
Total COGS
Gross Profit
Operating Expenses
EBIT
Interest Exp.
Pretax Income
Taxes
Net Profit

1993
2,921,000

1994
3,477,000

1995 % of Sales
4,519,000

330,000
2,209,000
2,539,000
337,000
2,202,000

337,000
2,729,000
3,066,000
432,000
2,634,000

432,000
3,579,000
4,011,000
587,000
3,424,000

719,000
622,000
97,000
23,000
74,000
14,000
60,000

843,000
717,000
126,000
42,000
84,000
16,000
68,000

1,095,000
940,000
155,000
56,000
99,000
22,000 <<<>>>
77,000

1996
5,500,000
10%
79%
13%

21%

587,000
4,355,942
4,942,942
714,428
4,228,514
1,271,486
1,144,058
127,428
56,000
71,428
12,857
58,571

Iteration 1 Iteration 2

Iteration 3 Iteration 4

Iteration 5
Add $500K
@ 7%
Interest
Keep Sales Keep Sales
Long Term
at
at Internal
Debt and
Borrow
Sustainable Level
Grow Sales Maintain
additional Level (20% (4.94%
to 30%
Smaller ST
funds
Growth)
Growth)
Growth
Debt
5,500,000
5,422,800 4,742,239 5,874,700 5,500,000

Iteration 6

Find
another
investor
5,500,000

587,000
4,355,942
4,942,942
714,428
4,228,514

587,000
4,294,800
4,881,800
704,400
4,177,400

587,000
3,755,803
4,342,803
615,998
3,726,805

587,000
4,652,700
5,239,700
763,100
4,476,600

587,000 587,000
4,355,942 4,355,942
4,942,942 4,942,942
714,428 714,428
4,228,514 4,228,514

1,271,486
1,144,058
127,428
82,301
45,127
6,769
38,358

1,245,400
1,128,000
117,400
80,716
36,684
4,171
32,513

1,015,434
986,436
28,998
56,000
-27,002
-11,751
-15,252

1,398,100
1,222,000
176,100
89,779
86,321
17,599
68,722

1,271,486 1,271,486
1,144,058 1,144,058
127,428 127,428
87,500
56,000
39,928
71,428
5,989
12,857
33,939
58,571

Common Size IS
Estimate
1993
2,921,000

1994
3,477,000

1995
4,519,000

1996
5,500,000

Ending Inv.
Total COGS

11.30%
75.62%
86.92%
11.54%
75.39%

9.69%
78.49%
59.42%
12.42%
75.75%

9.56%
79.20%
88.76%
12.99%
75.77%

10.67%
79.20%
89.87%
12.99%
76.88%

Gross Profit
Operating Expenses
EBIT
Interest Exp.
Pretax Income
Taxes
Net Profit

24.61%
21.29%
3.32%
0.79%
2.53%
0.48%
2.05%

24.25%
20.62%
3.62%
1.21%
2.42%
0.46%
1.96%

24.23%
20.80%
3.43%
1.24%
2.19%
0.49%
1.70%

23.12%
20.80%
2.32%
1.02%
1.30%
0.23%
1.06%

Sales
COGS
Beg. Inv.
Purchases

Cash
A/R, net
Inventory
Current Assets
Property, net
Total Assets
Notes Payable, bank
Notes Payable to Holtz, current portion
Notes Payable, trade
A/P
Accrued Expenses
Term Loan(s), current portion
Current Liabilities
Term Loan
Term Loan II
Note Payable, Mr. Holtz
Addtl Funding Needed
Total Liabilities
Net Worth
Total Liabilities and Net Worth
AFN

1993
43,000
306,000
337,000
686,000
233,000
919,000

213,000
42,000
20,000
275,000
140,000

1994
52,000
411,000
432,000
895,000
262,000
1,157,000

1995 % of Sales
56,000
1.24%
606,000
13.41%
587,000
12.99%
1,249,000
27.64%
388,000
8.59%
1,637,000

1996
68,157
737,553
714,428
1,520,137
472,228
1,992,366

60,000
100,000

390,000 N/A
100,000 N/A
127,000 N/A
376,000
8.32%
75,000
1.66%
20,000
1,088,000
100,000

390,000
100,000
127,000
457,623
91,281
20,000
1,185,905
80,000

1,188,000
449,000
1,637,000

1,265,905
507,571
1,773,476
218,890

340,000
45,000
20,000
565,000
120,000
100,000

415,000
504,000
919,000

785,000
372,000
1,157,000

Iteration 1

Iteration 2

Keep Sales at
Borrow
Sustainable
Additional Level (20%
Funds
Growth)
68,157
67,200
737,553
727,200
714,428
704,400
1,520,137
1,498,800
472,228
465,600
1,992,366
1,964,400
390,000
100,000
127,000
457,623
91,281
20,000
1,185,905
80,000

390,000
100,000
127,000
451,200
90,000
20,000
1,178,200
80,000

239,103
1,505,008
487,358
1,992,365
(0)

224,687
1,482,887
481,513
1,964,400
0

Iteration 3

Iteration 4

Keep Sales at
Internal Level Grow Sales
(4.94%
to 30%
Growth)
Growth
58,766
72,800
635,936
787,800
615,998
763,100
1,310,701 1,623,700
407,167
504,400
1,717,868 2,128,100

394,574
78,705
20,000
593,279
80,000

390,000
100,000
127,000
488,800
97,500
20,000
1,223,300
80,000

610,840
1,284,119
433,748
1,717,868
(0)

307,078
1,610,378
517,722
2,128,100
0

100,000

Iteration 5 Iteration 6
Add $500K
@ 7%
Interest
Long Term
Debt and
Maintain
Smaller ST Find Another
Debt
Investor
134,635
68,157
737,553
737,553
714,428
714,428
1,586,615
1,520,137
472,228
472,228
2,058,844
1,992,366
200,000
100,000
127,000
457,623
91,281
70,000
1,045,905
80,000
450,000

1,575,905
482,939
2,058,843
(0)

108,890
100,000
127,000
457,623
91,281
20,000
904,795
80,000

984,795
1,007,571
1,992,366

Common Size Balance Sheet

Cash
A/R, net
Inventory
Current Assets
Property, net
Total Assets
Notes Payable, bank
Notes Payable to Holtz, current portion
Notes Payable, trade
A/P
Accrued Expenses
Term Loan, current portion
Current Liabilities
Term Loan
Note Payable, Mr. Holtz
Addtl Funding Needed
Total Liabilities
Net Worth
Total Liabilities and Net Worth

1993
4.68%
33.30%
36.67%
74.65%
25.35%
919,000

1994
4.49%
35.52%
37.34%
77.36%
22.64%
1,157,000

1995
3.42%
37.02%
35.86%
76.30%
23.70%
1,637,000

1996
3.42%
37.02%
35.86%
76.30%
23.70%
1,992,366

5.19%
8.64%

23.82%
6.11%
7.76%
22.97%
4.58%
1.22%
66.46%
6.11%

21.99%
5.64%
7.16%
25.80%
5.15%
1.13%
66.87%
4.51%

72.57%
27.43%
1,637,000

71.38%
28.62%
1,773,476

23.18%
4.57%
2.18%
29.92%
15.23%

29.39%
3.89%
1.73%
48.83%
10.37%
8.64%

45.16%
54.84%
919,000

67.85%
32.15%
1,157,000

Liquidity Ratios
Current Ratio:
Quick Ratio:

1993
2.49
1.27

1994
1.58
0.82

1995
1.15
0.61

1996
1.28
0.68

1993
10.34
75.72
42.11
35.31
82.53
8.67
3.18
38.24
4.82
12.54

1994
7.75
43.14
45.35
47.11
41.38
8.05
3.01
43.14
8.46
13.27

1995
9.11
48.95
47.41
40.08
56.28
7.70
2.76
48.95
7.46
11.65

1996
9.24
48.95
47.41
39.50
56.86
7.70
2.76
48.95
7.46
11.65

1993
45%
4.22
4.22
0.82

1994
68%
3.00
3.00
2.11

1995
73%
2.77
2.77
2.65

1996
64%
2.28
2.28
2.49

1993
0.02
0.07
0.11
6.98%
13.51%
0.12

1994
0.02
0.06
0.11
6.24%
22.37%
0.18

1995
0.02
0.05
0.09
4.94%
20.70%
0.17

1996
0.01
0.03
0.06
3.03%
13.04%
0.12

Valuation Ratios
EPS
P/E Ratio
MV-to-BV

1993

1994

1995

1996

DuPont Analysis
Profitability
Asset Mgmt. Efficiency
DuPont ROA
Return on Sales
Total Asset T/O
Equity Multiplier
DuPont ROE

1993
0.021
3.18
0.07
0.021
3.18
1.82
0.12

1994
0.020
3.01
0.06
0.020
3.01
3.11
0.18

1995
0.017
2.76
0.05
0.017
2.76
3.65
0.17

1996
0.011
2.76
0.03
0.011
2.76
2.74
0.08

Asset Mgmt Ratios

A/P Turnover
Days Receivable Outstanding
Days Inventory Outstanding
Days Payable Outstanding
Cash Conversion Cycle
Inventory Turnover
Total Asset Turnover
Days Sales Outstanding
A/R Turnover
Fixed Asset Turnover
Debt Mgmt. Ratios
Debt Ratio
Time Interest Earned
Fixed Charge Coverage
Debt-to-Equity Ratio
Profitability Ratios
Return on Sales
Return on Assets
Basic Earnings Power
Internal Growth Rate
Sustainable Growth Rate
ROE
No Pricing Given-->

ROA

ROE

Iteration 1 Iteration 2 Iteration 3 Iteration 4 Iteration 5 Iteration 6

1.28
1.27
2.21
1.33
1.52
1.68
0.68
0.67
1.17
0.70
0.83
0.89
Iteration 1 Iteration 2 Iteration 3 Iteration 4 Iteration 5 Iteration 6
9.24
9.26
9.45
9.16
9.24
9.24
48.95
48.95
48.95
48.95
48.95
48.95
47.41
47.41
47.41
47.41
47.41
47.41
39.50
39.42
38.64
39.85
39.50
39.50
56.86
56.94
57.71
56.50
56.86
56.86
7.70
7.70
7.70
7.70
7.70
7.70
2.76
2.76
2.76
2.76
2.67
2.76
48.95
48.95
48.95
48.95
48.95
48.95
7.46
7.46
7.46
7.46
7.46
7.46
11.65
11.65
11.65
11.65
11.65
11.65
Iteration 1 Iteration 2 Iteration 3 Iteration 4 Iteration 5 Iteration 6
76%
75%
75%
76%
77%
49%
1.55
1.45
0.52
1.96
1.46
2.28
1.55
1.45
0.52
1.96
1.46
2.28
3.09
3.08
2.96
3.11
3.26
0.98
Iteration 1 Iteration 2 Iteration 3 Iteration 4 Iteration 5 Iteration 6
0.01
0.01
0.00
0.01
0.01
0.01
0.02
0.02
(0.01)
0.03
0.02
0.03
0.06
0.06
0.02
0.08
0.06
0.06
1.96%
1.68%
-0.88%
3.34%
1.68%
3.03%
8.54%
7.24%
-3.40%
15.31%
7.56%
6.17%
0.08
0.07
(0.04)
0.13
0.07
0.06
Iteration 1 Iteration 2 Iteration 3 Iteration 4 Iteration 5 Iteration 6

Iteration 1 Iteration 2 Iteration 3 Iteration 4 Iteration 5 Iteration 6

0.007
0.006
-0.003
0.012
0.006
0.011
2.76
2.76
2.76
2.76
2.67
2.76
0.02
0.02
(0.01)
0.03
0.02
0.03
0.007
0.006
-0.003
0.012
0.006
0.011
2.76
2.76
2.76
2.76
2.67
2.76
4.09
4.08
3.96
4.11
4.26
1.98
0.08
0.07
(0.04)
0.13
0.07
0.06