Tire City, Inc.

Exhibit 1 Financial Statements

INCOME STATEMENT
Net sales
Cost of sales
Gross profit
SG&A expenses
Depreciation (on existing PPE)
Depreciation (on new warehouse)
Operating Income (EBIT)
Interest expense (on existing loan)
Interest expense (on new loan)
Pre-tax income
Income taxes
Net Income
Tax rate

STATEMENT OF RETAINED EARNINGS

Beginning balance
Net income
Dividends
Ending balance

BALANCE SHEET
Cash
Excess Cash
Accounts receivable
Inventories
Total current assets
Gross plant & equipment
Net plant & equipment
Total assets
Current maturities of LTD
Accounts payable
Accrued expenses
Total current liabilities
Long-term debt
Long-term debt (new bank loan)
Common stock
Retained eamings
Total liabilities and equity
Total Assets EXCEPT asset plug
Liab. & Equity EXCEPT liab plug
Financing plug required

Atual
1994

1993

For years ending 12/31

$

16,230
9,430
6,800
5,195
160

20,355
11,898
8,457
6,352
180

Projections
1996

1995
$

23,505
13,612
9,893
7,471
213

28,206
16,403
11,803
8,932
213

1,445
119

1,925
106

2,209
94

1,326
546
780 $
41%

1,819
822
997 $
45%

2,115
925
1,190 $
44%

2,658
63
37
2,559
1,110
1,449
43%

2,930
1,190
240
3,880

2,133
997
200
2,930

1,508
780
155
2,133

3,880
1,449
290
5,039

508

609

706

2,545
1,630
4,683
3,232
1,335
1,897
6,580

3,095
1,838
5,542
3,795
1,515
2,280
7,822

3,652
2,190
6,548
4,163
1,728
2,435
8,983

125
1,042
1,145
2,312
1,000
1,135
2,133
6,580

125
1,325
1,432
2,882
875
1,135
2,930
7,822

125
1,440
1,653
3,218
750
1,135
3,880
8,983

858
4,365
1,625
6,848
6,163
1,941
4,222
11,070
125
1,792
1,986
3,903
625
368
1,135
5,039
11,070
11,070
10,701
368

Projections

Assumptions
1997

$
$

33,847
19,684
14,163
10,718
213
120
3,232
50
103
3,079
1,335
1,744
43%

5,039
1,744
349
6,433

20% Growth rate

58% of Sales
32% of Sales
the same as 1995
5% of cost of new warehouse
10% on LTD
10% on LTD
43% Tax rate

20% of Net income

1,030
3% of Sales
- ASSET PLUG
5,238
15% of Sales
3,203
9% of Sales for 1997
9,470
6,563 add. $2,000 in 1996, $400 in 1997
2,274
4,289
13,759
125
2,150
2,383
4,658
500
1,033
1,135
6,433
13,759
13,759
12,726
1,033

1993

For years ending 12/31

COMMON SIZE ANALYSIS (%)
Net sales
Cost of sales
Gross profit
SG&A expense
Depreciation
Depreciation (on new warehouse)
Operating income (EBIT)
Interest expense (STD)
Interest expense (LTD)
Pre-tax income
Tax allowance
Net income
Dividend Payout Ratio

ACTIVITY RATES
Sales per day (365 day/yr)
Cost of sales per day

ACTIVITY RATIOS
Cash on hand % of sales
Account receivable % of sales
Inventory % of sales
Account payable % of sales
Accrued expense % of sales

LIQUIDITY RATIOS
Current ratio
Quick ratio
Cash ratio

100.00%
58.10%
41.90%
32.01%
0.99%
0.00%
8.90%
0.73%
0.00%
8.17%
3.36%
4.81%
19.87%

$
$

44.47
25.84

3.13%
15.68%
10.04%
6.42%
7.05%

2.03
1.32
0.22

6% of Sales
7% of Sales

LIAB. PLUG

LEVERAGE RATIOS
Total debt to assets
Long term debt to equity
Time interest earned

0.50
0.31
12.14

PROFITABILITY RATIOS
Gross profit margin
Operating profit margin
Net profit margin
Return on assets
Return on equity

41.90%
8.90%
4.81%
11.85%
23.87%

$
$

1994

1995

1996

1997

100.00%
58.45%
41.55%
31.21%
0.88%
0.00%
9.46%
0.52%
0.00%
8.94%
4.04%
4.90%
20.06%

100.00%
57.91%
42.09%
31.78%
0.91%
0.00%
9.40%
0.40%
0.00%
9.00%
3.94%
5.06%
20.17%

100.00%
58.16%
41.84%
31.67%
0.76%
0.00%
9.42%
0.22%
0.13%
9.07%
3.93%
5.14%
20.03%

100.00%
58.16%
41.84%
31.67%
0.63%
0.35%
9.55%
0.15%
0.31%
9.10%
3.94%
5.15%
20.03%

55.77
32.60

2.99%
15.21%
9.03%
6.51%
7.04%

$
$

64.40
37.29

3.00%
15.54%
9.32%
6.13%
7.03%

$
$

77.28
44.94

3.04%
15.47%
5.76%
6.35%
7.04%

$
$

92.73
53.93

3.04%
15.47%
9.46%
6.35%
7.04%

1.92
1.29
0.21

2.03
1.35
0.22

1.75
1.34
0.22

2.03
1.35
0.22

0.48
0.22
18.16

0.44
0.15
23.50

0.44
0.16
26.76

0.45
0.20
21.08

41.55%
9.46%
4.90%
12.75%
24.53%

42.09%
9.40%
5.06%
13.25%
23.73%

41.84%
9.42%
5.14%
13.09%
23.47%

41.84%
9.55%
5.15%
12.67%
23.04%