Business Ferret Sample Coffee Roaster 040111

Coffee Roaster with Coffee Shops
#1 REAL REVENUE GROWTH

NOMINAL REVENUE GROWTH
30.00%
#2 SUSTAINABLE REVENUE GROWTH

PRICE ADJ REV
PRICE ADJUSTED REVENUE GROWTH
SUSTAINABLE REV
#3 PRICING POLICY
NOMINAL REV
GP MARK-UP CHANGE
30.00%
2.50
25.00%
25.00%
2.45
20.00%
20.00%
15.00%
15.00%
10.00%
10.00%
5.00%
5.00%
2.25
0.00%
0.00%
2.20
-5.00%
-5.00%
2.15
-10.00%
-10.00%
2.10
2007
2008
2009
12%
5%
2010
2007
2008
2.35
0.89%
2.30
6%
2009
-2.81%
-3.91%
2006
2010
2007
#5 EBITDA to ACTUAL CASH FLOW

EBITDA
CFBF ACTUAL
CORE OPER EXP%

$7,000,000
2,500,000
CFBF ACTUAL
$1,200,000
60.00%
$6,000,000
2,000,000
$1,000,000
50.00%
$5,000,000
40.00%
$4,000,000
30.00%
$3,000,000
20.00%
$2,000,000
10.00%
$1,000,000
NOI%
GP%
2008
2009
2010
#6 DEBT FREE CASH FLOW
70.00%
GP$
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
-1.00%
-2.00%
-3.00%
-4.00%
-5.00%
4.66%
2.40
14%
#4 OPERATING EXPENSE CONTROL

NOI$
GROSS PROFIT MARK-UP INDEX
CFBF DEBT FREE
ADJUSTED CFBF DEBT FREE
$800,000
1,500,000
$600,000
1,000,000
0.00%
$0
2006
2007
2008
2009
$400,000
500,000
$200,000
$0
(500,000)
($200,000)
2010
2007
CASH BALANCE
2009
2010
2007
#8 RETURN on ASSETS (ROA)
#7 USE of EXCESS CASH

CASH GENERATION
2008
RETURN on ASSETS
EXCESS NET CASH
ADJUSTED ROA
CASH
30.00%
$2,500,000
$2,500,000
25.00%
$2,000,000
$2,000,000
20.00%
$1,500,000
$1,500,000
15.00%
$1,000,000
$1,000,000
10.00%
$500,000
$500,000
5.00%
$0
2008
2009
2010
2007
#10 USE of DEBT FINANCING

TOTAL ASSETS
EQUITY
LONG TERM DEBT
2008
2009
CURRENT LIAB
AR Cash
$250,000
$6,000,000
$200,000
$5,000,000
$150,000
INV CASH
AP Cash
Cash Conversion
30
25.00%
25
20.00%
($100,000)
$0
($150,000)
2006
2007
2008
2009
2010
2008
2009
ROA %
ROI %
WC Need
2010
EVA$
$0
($400,000)
($600,000)
20
15.00%
($800,000)
($1,000,000)
15
10.00%
($1,200,000)
10
($50,000)
$1,000,000
ACCTS PAYABLE
($200,000)
$0
$2,000,000
2007
ADJ COST of CAPITAL %
NTC Days
$50,000
$3,000,000
INVENTORY
#12 ECONOMIC VALUE ADDED (EVA)
$100,000
$4,000,000
ARs
2006
2010
#11 NET TRADE CYCLE
$7,000,000
2010
($500,000)
0.00%
2007
2009
#9 WORKING CAPITAL NEEDS
EFFICIENT ROA
$3,000,000
$0
2008
($1,400,000)
5.00%
0.00%
($1,600,000)
($1,800,000)
2007
2008
2009
2010
($2,000,000)
2007
2008
2009
2010
REAL REVENUE GROWTH
SUSTAINABLE REVENUE GROWTH
#1
#2
PRICING POLICY
#3
OPERATING EXPENSE CONTROL
#4
EBITDA to ACTUAL CASH FLOW
DEBT FREE CASH FLOW
#5
#6
USE of EXCESS CASH
#7
RETURN on ASSETS (ROA)
#8
WORKING CAPITAL NEEDS
USE of DEBT FINANCING
NET TRADE CYCLE
ECONOMIC VALUE ADDED (EVA)
#9
#10
#11
#12
Real revenue growth reflects the actual real increase or decrease year by year in your business sales. Price increases or decreases
are measured by the year to year change in the gross profit mark-up index. Real revenue growth shows us the annual growth in
revenues adjusted for the effect of annual over-all increases or decreases in the gross profit mark-up or mark-down. This can be
due to increase or decrease in the end pricing to the buyers or due to decreases or increases in the costs of goods sold. Real
revenue growth is similar to an additional adjustment to prices for annual inflation or deflation.
$0
The annual change in retained earnings in relation to equity if you use debt financing or total assets (if no debt financing) tells one
how fast or slow the revenues can change in the following year. Have you ever heard the term growing broke? That term means
growing annual revenues so fast that they consume the resources of the balance sheet faster than they can be replenished. Where
do additional resources primarily come from from retained earnings or the portion of annual net income you leave in or reinvest in
your business.
$0
We use the gross profit mark-up index to develop pricing policy. This index measures revenue divided by cost of goods sold,
resulting in an index. The annual change in this index plus or minus shows the increase or decrease in over-all pricing. Real
revenue growth as defined above is derived by subtracting the over-all pricing index from the nominal annual revenue change. For
many companies it would be impossible to add up a bunch of widgets, compare to the prior year, and know how much more volume
was produced. This can be daunting for even the well-organized firm. So this is how one can ferret out price increases or decreases
over-all year by year.
Operating expenses are expressed as a percentage of revenues. This percentage is typically compared to net income margin or net
income to revenues. Statistics are used to determine if the operating expenses are moving in or out of control and the magnitude of
any change. These statistics will tell one how sustainable operating expense improvements really are. Core operating expenses are
tracked in order to find different levels of economies of scale.
EBITDA means earnings before interest expense, taxes, annual depreciation expense and amortization. EBITDA is typically used by
banks to assess the ability of a firm to pay back debt financing. EBITDA ignores several issues critical to any business. It ignores
interest expenses, income taxes, annual changes in working capital, and annual capital expenditures to maintain the on-going viable
business operation. Without making working capital investments and capital expenditures, the business would begin to decline and
ultimately to fail. EBITDA is compared to annual cash flow before financing - IT SHOULD NOT BE USED for cash flow.
Cash flow before financing with after tax interest expense added back shows a companys debt-free cash flow after tax. This is the
most meaningful cash flow for any business and should be followed consistently and frequently. This number is what is followed to
determine sustainable annual cash flow. This is the real driver of increasing business value without reservation. It is very difficult to
game this figure which is another valuable characteristic of this metric.
How a company manages its cash is a critical job that most companies do not really understand. Poor cash management can harm
the companys performance in subtle but serious ways. It lowers the return on assets and it increases the cost of capital. Holding
excess cash dulls the companys operating edge which increases overall risk and produces overly confident management. When
the cash balance exceeds the actual working capital cash balance need then that excess cash balance is unnecessary to the firms
financial operations. Increasing or decreasing excess cash balances is a leading indicator of future good or bad times for the
company.
Assets means the firms total assets. The return on assets is calculated as net income after tax plus after- tax interest expense
added back in as net income. The result is divided by total assets to arrive at the Return on Assets (ROA). ROA can then be
compared to other returns on investments with similar risk profiles. For instance, if your business is only returning 4% ROA
compared to say the yield on a junk municipal bond at 6%, one would conclude that the business is probably underperforming for
the risk taken to have all the assets tied up in an illiquid business operation.
$0
$0
$0
$0
$0
$0
Working capital is the interaction of the current assets and current liabilities. Accounts receivable and inventory (if applicable) are
the main drivers of current assets and accounts payable and other payables are the main drivers of the current liabilities. The
current liabilities fund to some extent the current assets. Mismatching the working capital will cause consistent and costly problems
for the company. Knowing the potential need for capital in the working capital is an important metric for determining the future
financing of the business whether short, medium, or long term.
$0
The total debt or total liabilities will be different in each industry and with each business depending on the company's risk tolerance.
Long term debt financing should be used for long term asset financing and short term debt for working capital. Total annual interest
expense percentage to revenues should not exceed the net operating income margin as a percentage to revenues. This is what is
termed negative leverage. Negative leverage should be avoided at all costs. The use of debt financing is a critical component to
management of a companys cost of capital and cash flow, and proper use of debt lowers the over-all cost of capital.
$0
The measurement of average days to annual revenues tied up in accounts receivable, inventory and accounts payable is used to
determine the net trade cycle or cash conversion cycle. It tells a company how fast cash goes through its sale or trade cycle before
coming back out as cash again. The shorter the days in the NTC or CCC the better in most cases. The days in accounts receivable
plus the days in inventory less the days in accounts payable will produce the NTC days. This is a critical metric in managing the
business operations.
$0
Economic value added is a long term goal that every firm should follow without exception. This calculation determines the actual
cost of your capital (COC) both debt and equity combined as compared to the return on assets or ROA. The ROA needs to exceed
the COC in order to add premium value to the business over and above the book net equity. When the ROA falls under COC the
firm is destroying capital employed in the business. This would be the same as selling your products or services below the cost to
produce them. You can only do that for so long before bad things begin to happen to the business.
$0
Income Statement
2006
2007
Gross Revenues
COGS
Gross Profit
Operating Expense (including items below)
Operating Expense (Less Items Below)
Officers' Salaries
Depreciation
Amortization
Total Expenses
Operating Income/Loss
Interest Income
Other Income
Total Other Income
Other Expense (-)
Interest Expense ( - )
Total Other Expense
7,787,000
3,179,000
9,412,000
3,999,000
Pre-Tax Income
Income Tax Expense
Net Income After Tax
Balance Sheet
ASSETS
Current Assets
Cash
Short Term Investments
Accounts Receivable - Net
Inventories
WIP
Advances & Other Current Assets
Prepaid Expenses
Total Current Assets
Fixed Assets
Plant and Equipment
Buildings & Leasehold Improvements
Land
Accumulated Depreciation
Net Plant Equipment
Other Intangible Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Accounts Payable
Other Current Liabilities
Unearned Income/Deposits
Line of Credit
Other Short Term Loans
Current Portion of Long Term Debt
Total Current Liabilities
Long Term Liabilities
Long Term Debt
Other Liabilities
Other Loans Payable
Shareholder loans
Short/Current Long Term Debt
Net Long Term Liabilities
Total Liabilities
STOCKHOLDER EQUITY
Common Stock
Preferred Stock
Additional Paid In Capital
Dividends
Retained Earnings
Treasury Stock
Net Income
Other Stockholder Equity
Total Stockholder Equity
Total Liabilities & Stockholder Equity
4,608,000
3,714,000
2008
5,413,000
4,359,000
2009
10,383,000
4,645,000
5,738,000
5,234,000
2010
9,775,000
4,325,000
5,450,000
4,888,000
10,707,000
4,459,000
6,248,000
4,828,000
3,327,000
3,892,000
4,685,000
4,353,000
387,000
0
467,000
0
549,000
0
535,000
0
510,000
0
3,714,000
4,359,000
5,234,000
4,888,000
4,828,000
894,000
1,054,000
504,000
562,000
1,420,000
12,000
0
2,000
0
5,000
0
37,000
0
50,000
0
12,000
2,000
5,000
37,000
50,000
0
0
0
0
0
(53,000)
0
(39,000)
0
(33,000)
(53,000)
(39,000)
(33,000)
906,000
325,000
1,056,000
384,000
456,000
144,000
560,000
168,000
1,437,000
489,000
581,000
672,000
312,000
392,000
948,000
2006
2007
2008
2009
4,318,000
2010
313,000
281,000
270,000
600,000
1,164,000
0
224,000
288,000
329,000
271,000
303,000
636,000
690,000
693,000
665,000
542,000
230,000
127,000
288,000
149,000
287,000
169,000
353,000
147,000
590,000
157,000
1,530,000
1,696,000
1,748,000
2,036,000
2,756,000
1,504,000
1,770,000
1,784,000
1,943,000
1,957,000
2,752,000
3,536,000
3,934,000
3,758,000
3,934,000
0
(1,970,000)
0
(2,416,000)
0
(2,761,000)
0
(3,165,000)
0
(3,472,000)
2,286,000
2,890,000
2,957,000
2,536,000
2,419,000
613,000
758,000
968,000
1,005,000
1,211,000
4,429,000
5,344,000
5,673,000
5,577,000
6,386,000
2006
2007
2008
2009
2010
341,000
391,000
325,000
267,000
283,000
894,000
1,054,000
1,151,000
1,314,000
1,496,000
700,000
710,000
713,000
0
1,000
0
1,000
0
1,000
0
0
0
0
1,936,000
2,156,000
2,190,000
1,581,000
1,779,000
3,000
551,000
550,000
549,000
549,000
262,000
354,000
443,000
401,000
383,000
0
0
0
0
0
(1,000)
0
(1,000)
0
(1,000)
264,000
904,000
992,000
950,000
932,000
2,200,000
3,060,000
3,182,000
2,531,000
2,711,000
1,000
1,000
1,000
1,000
1,000
0
0
0
0
0
0
0
0
0
0
1,000
1,000
1,000
1,000
1,000
0
3
Coffee Roaster with Coffee Shops
March 31, 2011
CONTINUE
Privately Held Company - Financials Calendar Year End - Accrual Basis
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
WARNING
Financial data provided through Coffee Roaster with Coffee Shops. The financial statements are NOT audited or assured by BUSINESS FERRET LLC.
1
2
3
4
5
6
7
8
9
INCOME STATEMENT
REVENUES
2006
2007
2008
2009
2010
AVERAGE
(all numbers in 1,000s)

Annualizing Factor
GROSS REVENUES:
Other Revenues
Other Revenues
Returns, Refunds, and Discounts
Write-downs
TOTAL NET REVENUES
$7,787,000
0
0
0
0
$7,787,000
Annual Percentage Increase or Decrease in Net Revenues

ANNUAL PRICING CHANGES
NET ANNUAL PRICE ADJUSTED REVENUE GROWTH
PRICE ELASTICITY (sensitivity to price changes)
$9,412,000
0
0
0
0
$9,412,000
20.87%
-3.92%
24.78%
6.33
1,625,000
COSTS OF REVENUES (net of depreciation) same as COGS

Costs of Revenues Margin
Annual Percentage Increase or Decrease Costs of Revenues
3,179,000
40.82%
3,999,000
42.49%
25.79%
$4,608,000
59.18%
$5,413,000
57.51%
17.47%
-2.81%
$1,625,000
$805,000
49.54%
820,000
GROSS PROFIT
Gross Profit Margin
Annual Percentage Increase or Decrease in Gross Profit Dollars
ANNUAL CHANGE in BASE GP MARGIN % DUE to MARK-UP INDEX CHANGE
ANNUAL REVENUE CHANGE in $'s
ANNUAL GROSS PROFIT CHANGE in $'s
GROSS PROFIT CHANGE to REVENUE CHANGE in PERCENTAGE
-7.97%
REVENUE PRICING POLICY

GROSS PROFIT MARK-UP INDEX
PERCENTAGE DIFFERENCE of INDEX (from One Year to the Next)
CUMULATIVE ANNUAL PERCENTAGE DIFFERENCES
ANNUAL PERCENTAGE times ANNUAL REVENUES
CUMULATIVE ANNUAL PERCENTAGE times ANNUAL REVENUES
REVENUES REQUIRED to MAINTAIN GP$ w/ HIGHEST GP MARGIN
REVENUE DECLINE POSSIBLE still MAINTAINING GP DOLLARS
2.45
$7,787,000
$0
$10,383,000
0
0
0
0
$10,383,000
10.32%
-5.03%
15.34%
3.05
$9,775,000
0
0
0
0
$9,775,000
-5.86%
1.11%
-6.97%
6.28
$10,707,000
0
0
0
0
$10,707,000
9.53%
6.24%
3.29%
0.53
971,000
(608,000)
932,000
4,645,000
44.74%
16.15%
4,325,000
44.25%
-6.89%
4,459,000
41.65%
3.10%
646,000
$5,738,000
55.26%
6.00%
-3.91%
$971,000
$325,000
33.47%
-21.79%
(320,000)
$5,450,000
55.75%
-5.02%
0.89%
($608,000)
($288,000)
47.37%
-8.39%
$9,612,800
0
0
0
0
$9,612,800
CORE OPERATING EXPENSE (excluding deprec. & amort. exp.)

OTHER EXPENSES ADJUSTMENTS
DEPRECIATION EXPENSE (from COGS & operating exp.)
AMORTIZATION EXPENSE (from operating exp.)
TOTAL EXPENSES:
Total Expenses to Revenues
Annual Percentage Increase or Decrease in Operating Expense
Total Core Operating Expenses to Revenues
DIFFERENCE between GP & EXPENSE NET ANNUAL % CHANGE
2006
$3,327,000
0
387,000
0
3,714,000
47.69%
42.73%
100.00%
0.00%
0.00%
0.00%
0.00%
100.00%
-0.40%
4.77%
3.34
100.00%
4.69%
$5,491,400
57.21%
8.27%
58.35%
57.13%
7.91%
596,136
10.86%
97.18%
134,000
$6,248,000
58.35%
14.64%
4.66%
$932,000
$798,000
85.62%
#13 INCREMENTAL ANNUAL CHANGES

REV CHG
-3.92%
-3.92%
($368,578)
($368,578)
-5.03%
-8.94%
($521,807)
($928,410)
1.11%
-7.83%
$108,489
($765,556)
6.24%
-1.59%
$668,421
($170,127)
-0.40%
-5.57%
($28,369)
$9,147,359
($264,641)
$9,696,572
($686,428)
$9,209,885
($565,115)
$10,558,415
($148,585)
$9,279,846
($332,954)
($1,000,000)
AVERAGE
% of
CURRENT
REVENUES
40.33%
0.10%
-14.07%
1.59%
15.87%
565,000
793,000
(332,000)
(35,000)
GP %
59%
59%
58%
58%
57%
57%
56%
56%
55%
55%
54%
54%
$1,000,000
2.34
$4,318,000
0
510,000
0
4,828,000
45.09%
-1.23%
GP CHG
$1,500,000
27.27%
2010
COGS CHG
$2,000,000
AVERAGE
44.53%
11.85%
ASSET BASED
96.99%
2.40
45.12%
100.00%
14.01%
2.26
41.35%
11.85%
577,209
2.24
$4,353,000
0
535,000
0
4,888,000
50.01%
-6.61%
PROBABILITY
8.83%
2.35
$4,685,000
0
549,000
0
5,234,000
50.41%
20.07%
12
LINKAGE TO
REVENUES
42.87%
798,000
$3,892,000
0
467,000
0
4,359,000
46.31%
17.37%
8.29%
1,139,151
0
0
0
0
1,139,151
9.15%
11
41.65%
(288,000)
2009
8.29%
STANDARD
DEVIATION
4,121,400
42.79%
9.54%
325,000
2008
100.00%
0.00%
0.00%
0.00%
0.00%
100.00%
GROWTH
RATE in
DOLLARS
WEIGTHED AVERAGE REAL REVENUE GROWTH RATE

WEIGTHED AVERAGE PRICE ELASTICITY
805,000
2007
% of
AVERAGE
REVENUES
AVERAGE SUSTAINABLE REVENUE GROWTH EQUITY BASED
$500,000
$0
($500,000)
OPERATING EXPENSES
% of
CURRENT
REVENUES
DANGER
10
$4,115,000
0
489,600
0
4,604,600
47.90%
7.40%
2007
% of
AVERAGE
REVENUES
2008
GROWTH
RATE in
DOLLARS
40.33%
0.00%
4.76%
42.81%
6.74%
5.09%
45.09%
47.90%
2009
STANDARD
DEVIATION
2010
PROBABILITY
LINKAGE TO
REVENUES
522,835
12.71%
91.64%
7.14%
65,275
13.33%
89.87%
6.78%
587,336
12.76%
91.57%
42.81%
0.87%
1
2
3
4
5
6
7
8
9
1
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
NET OPERATING INCOME or (LOSSES)

2006
NET OPERATING INCOME or (LOSS) or NOI
$894,000
11.48%
Net Operating Income to Revenues

Annual Percentage Increase or Decrease in NOI
2007
ANNUAL NOI CHANGE in $'s

NOI CHANGE to REVENUE CHANGE in PERCENTAGE
OTHER INCOME
INTEREST INCOME
GAIN on SALE of ASSETS
OTHER
OTHER
TOTAL OTHER INCOME
2008
$1,054,000
11.20%
17.90%
$160,000
9.85%
160,000
12,000
0
0
0
12,000
$504,000
4.85%
-52.18%
($550,000)
-56.64%
(550,000)
2,000
0
0
0
2,000
5,000
0
0
0
5,000
2009
$562,000
5.75%
11.51%
$58,000
-9.54%
58,000
37,000
0
0
0
37,000
2010
$1,420,000
13.26%
152.67%
$858,000
92.06%
AVERAGE
$886,800
9.31%
32.47%
% of
CURRENT
REVENUES
% of
AVERAGE
REVENUES
13.26%
9.23%
RESTORING AVG. NOI %
10
11
12
STANDARD
DEVIATION
PROBABILITY
LINKAGE TO
REVENUES
375,613
-30.44%
42.36%
REVs. to RESTORE $ MARGIN
GP CHG
$1,000,000
OPER EXP CHG
NOI CHG
NET INC %
16.00%
$800,000
14.00%
$600,000
12.00%
0.00%
LESS INCOME TAXES @ 35% or REFUNDS

NET INCOME AFTER TAX
PLUS DEPRECIATION AND AMORTIZATION
GROSS AFTER TAX CASH FLOW
GROSS AFTER TAX CASH FLOW MARGIN
EBIT $
EBIT MARGIN
EBITDA $
EBITDA MARGIN
CASH FLOW BEFORE FINANCING - DEBT FREE
CASH FLOW BEFORE FINANCING MARGIN
ADJ. CASH FLOW BEFORE FINANCING - DEBT FREE
ADJ. CASH FLOW BEFORE FINANCING MARGIN
ACTUAL CASH FLOW BEFORE FINANCING
ADJ. CASH FLOW BEFORE FINANCING MARGIN
0
0.00%
0
0
0
0
11.6%
PRE-TAX INCOME
10.00%
$200,000
0
0
0
0
11.2%
(53,000)
3.11%
0
0
0
(53,000)
4.4%
(39,000)
4.11%
0
0
0
(39,000)
5.7%
(33,000)
3.54%
0
0
0
(33,000)
13.4%
($4,020,403)
#14 INCREMENTAL ANNUAL CHANGES

21,200
0
0
0
21,200
$400,000
OTHER EXPENSE
INTEREST EXPENSE
ANNUAL INTEREST RATE ON ALL INTEREST BEARING DEBT
LOSS on SALE of ASSETS
OTHER
OTHER
TOTAL OTHER EXPENSE
11.05%
8.93%
858,000
50,000
0
0
0
50,000
GROWTH
RATE in
DOLLARS
(25,000)
2.15%
0
0
0
(25,000)
9.2%
8.00%
$0
6.00%
($200,000)
($400,000)
4.00%
($600,000)
2.00%
($800,000)
3.64%
2007
9.19%
2008
12.22%
3.21%
5.97%
13.49%
11.06%
13.26%
0.00%
12.22%
2009
394,978
138,242
256,736
2010
44.73%
44.73%
44.73%
8.23%
8.23%
8.23%
10.29%
242,488
22.80%
32.91%
9.23%
12.26%
375,613
42.36%
11.05%
18.03%
14.32%
10.79%
360,255
26.17%
27.81%
8.49%
4.68%
537,080
119.34%
37.05%
10.41%
6.24%
511,069
85.25%
49.10%
8.28%
4.47%
532,914
124.02%
35.51%
$906,000
317,100
588,900
387,000
975,900
12.53%
$1,056,000
369,600
686,400
467,000
1,153,400
12.25%
$456,000
159,600
296,400
549,000
845,400
8.14%
$560,000
196,000
364,000
535,000
899,000
9.20%
$1,437,000
502,950
934,050
510,000
1,444,050
13.49%
$883,000
309,050
573,950
489,600
1,063,550
11.12%
13.42%
4.70%
8.72%
894,000
11.48%
1,281,000
16.45%
1,054,000
11.20%
1,521,000
16.16%
(50,600)
-0.54%
94,400
1.00%
(50,600)
-0.54%
504,000
4.85%
1,053,000
10.14%
21,850
0.21%
231,850
2.23%
(12,600)
-0.12%
562,000
5.75%
1,097,000
11.22%
920,350
9.42%
957,350
9.79%
895,000
9.16%
1,420,000
13.26%
1,930,000
18.03%
908,500
8.49%
1,114,500
10.41%
887,050
8.28%
886,800
9.31%
1,376,400
14.40%
450,025
4.39%
599,525
5.86%
429,713
4.20%
1
2
3
4
5
6
7
8
9
1
93
94
95
96
97
98
99
100
101
102
103
104
105
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
% of
BALANCE SHEET
ASSETS
2006
2007
2008
2009
2010
AVERAGE
REVENUES
% of
%CURRENT
of CURRENT %AVERAGE
of AVERAGE
TOTAL ASSETS TOTAL ASSETS
REVENUES
GROWTH
RATE in
DOLLARS
10
11
12
STANDARD
DEVIATION
PROBABILITY
LINKAGE TO
REVENUES
CURRENT ASSETS
Cash Balance Excess or (Shortfall)
CASH
ACCOUNTS RECEIVABLE (net of Bad Debt Allowance)
INVENTORIES plus WORK in PROCESS
ADVANCES & OTHER CURRENT ASSETS
PREPAID EXPENSES
TOTAL CURRENT ASSETS
1,705,100
313,000
224,000
636,000
230,000
127,000
1,774,800
281,000
288,000
690,000
288,000
149,000
1,573,800
270,000
329,000
693,000
287,000
169,000
1,413,000
600,000
271,000
665,000
353,000
147,000
2,529,100
1,164,000
303,000
542,000
590,000
157,000
1,799,160
525,600
283,000
645,200
379,500
149,800
39.60%
18.23%
4.74%
8.49%
9.24%
2.46%
32.82%
9.59%
5.16%
11.77%
6.92%
2.73%
38.87%
7.84%
-3.92%
26.56%
430,743
381,919
39,262
62,086
141,263
15,401
23.94%
72.66%
13.87%
9.62%
37.22%
10.28%
37.66%
54.65%
90.60%
-23.01%
69.31%
91.20%
$1,530,000
$1,696,000
$1,748,000
$2,036,000
$2,756,000
$1,953,200
43.16%
35.63%
15.85%
484,433
24.80%
70.59%
0
2,752,000
1,504,000
0
0
(1,970,000)
0
$2,286,000
0
3,536,000
1,770,000
0
0
(2,416,000)
0
3,934,000
1,784,000
0
0
(2,761,000)
0
3,758,000
1,943,000
0
0
(3,165,000)
0
3,934,000
1,957,000
0
0
(3,472,000)
1,791,600
0
0
(2,756,800)
0.00%
61.60%
30.65%
0.00%
32.68%
9.34%
6.80%
492,391
182,700
10.20%
98.48%
87.58%
-54.37%
-50.29%
594,423
-21.56%
-87.02%
$2,890,000
$2,957,000
$2,536,000
$2,419,000
$2,617,600
37.88%
47.75%
1.42%
293,876
11.23%
43.43%
613,000
0
613,000
758,000
0
758,000
968,000
0
968,000
1,005,000
0
1,005,000
1,211,000
0
1,211,000
911,000
0
911,000
18.96%
0.00%
18.96%
16.62%
18.56%
231,462
25.41%
91.23%
16.62%
18.56%
231,462
25.41%
91.23%
$4,429,000
$5,344,000
$5,673,000
$5,577,000
$6,386,000
$5,481,800
100.00%
100.00%
9.58%
705,439
12.87%
96.50%
$313,000
$281,000
$270,000
$600,000
$1,164,000
FIXED ASSETS
LAND
BUILDINGS/LEASE IMPROVEMENTS
PLANT& EQUIPMENT
OFFICE EQUIPMENT
TRANSPORTATION EQUIPMENT
(LESS: ACCUMULATED DEPRECIATION EXPENSE)
TOTAL NET FIXED ASSETS

OTHER ASSETS
GOODWILL
OTHER INTANGIBLE ASSETS
TOTAL OTHER ASSETS

TOTAL ASSETS
CASH ADJUSTMENT FACTOR
$525,600
1
2
3
4
5
6
7
8
9
1
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157
158
159
160
161
162
163
164
165
166
167
168
169
170
LIABILITIES:
CURRENT LIABILITIES
ACCOUNTS PAYABLE
OTHER PAYABLES
UNEARNED INCOME
LINE OF CREDIT
CURRENT PORTION OF LONG TERM DEBT & LEASES
LINE of CREDIT LIMIT $
TOTAL CURRENT LIABILITIES:
2006
2006
2007
2007
2008
2008
2009
2009
2010
2010
AVERAGE
$341,000
894,000
0
700,000
1,000
$391,000
1,054,000
0
710,000
1,000
$325,000
1,151,000
0
713,000
1,000
$267,000
1,314,000
0
0
0
$283,000
1,496,000
0
0
0
$321,400
1,181,800
0
424,600
600
$1,581,000
$1,779,000
$1,928,400
$
$1,936,000
$
$2,156,000
% of
CURRENT
REVENUES
4.43%
23.43%
0.00%
0.00%
0.00%
TOTAL LONG TERM DEBT

OTHER LONG TERM LIABILITIES
DEFERRED TAX LIABILITY
TOTAL LIABILITIES:
$3,000
0
0
262,000
0
(1,000)
$264,000
GROWTH
RATE in
DOLLARS
-4.55%
13.74%
10
STANDARD
DEVIATION
49,181
232,545
-100.00%
11
12
LINKAGE TO
REVENUES
15.30%
-43.65%
19.68%
84.24%
PROBABILITY
0.00%
-49.34%
-50.34%
13.30%
-6.66%
$
$2,190,000
27.86%
15.30%
-2.93%
LONG TERM LIABILITIES

LONG TERM DEBT
CAPITAL LEASE
MORTGAGE LOANS
OTHER LOANS PAYABLE
SHAREHOLDERS' LOANS
LESS CURRENT PORTION OF LONG TERM DEBT
% of
AVERAGE
REVENUES
5.86%
21.56%
35.18%
0.45%
-9.14%
-2.09%
256,564
WORKING CAPITAL GAP with CASH BALANCE

WORKING CAPITAL GAP without CASH BALANCE
$551,000
0
0
354,000
0
(1,000)
$550,000
0
0
443,000
0
(1,000)
$549,000
0
0
401,000
0
0
$549,000
0
0
383,000
0
0
$440,400
0
0
368,600
0
(600)
8.60%
8.03%
267.80%
244,515
55.52%
89.51%
6.00%
6.72%
9.96%
67,767
18.38%
89.34%
$904,000
$992,000
$950,000
$932,000
$808,400
14.59%
14.75%
37.07%
306,001
37.85%
91.40%
42.45%
49.93%
5.36%
398,069
14.55%
65.96%
44.62%
14.63%
44.73%
10.47%
9.86%
12.22%
358,959
256,736
14.64%
44.73%
91.34%
8.23%
51.37%
49.56%
10.16%
389,027
14.32%
86.79%
57.55%
50.07%
13.31%
612,126
22.30%
68.32%
100.00%
100.00%
705,439
12.87%
96.50%
$2,200,000
$3,060,000
$3,182,000
$2,531,000
$2,711,000
$2,736,800
$1,000
0
1,956,200
588,900
(317,100)
0
0
2,228,000
0
$2,229,000
$1,000
(261,800)
2,228,000
686,400
(369,600)
0
0
2,544,800
0
$2,284,000
2.47%
$1,000
(191,600)
2,544,800
296,400
(159,600)
0
0
2,681,600
0
$2,491,000
9.06%
$1,000
195,400
2,681,600
364,000
(196,000)
0
0
2,849,600
0
$3,046,000
22.28%
$1,000
27,060
2,452,040
573,950
(309,050)
0
0
2,716,940
0
$2,745,000
13.62%
STOCKHOLDERS' EQUITY
COMMON STOCK - CUMULATIVE
OTHER PAID-IN CAPITAL or DISTRIBUTIONS -Cumulative
RETAINED EARNINGS-BEGINNING
NET INCOME
Tax Effect Distributions
Dividend Distributions
Other Distributions
RETAINED EARNINGS-ENDING
LESS TREASURY STOCK
EQUITY
$4,429,000
$5,344,000
$5,673,000
$5,577,000
$1,000
393,300
2,849,600
934,050
(502,950)
0
0
3,280,700
0
$3,675,000
20.65%
$36.75
100,000
$3,675,000
100.00%
25.42%
0.00%
$6,386,000
Annual Equity Percentage Changes
Share Price
Shares Outstanding
Market Capitalization of Equity
MV Equity to Book Equity
After-Tax Current Yield on MV Equity (plus dividends)
After-Tax Dividend Yield Based on MV Equity
TOTAL LIABILITIES & NET WORTH

Check
Book Equity Pricing
$5,481,800
9.58%
1
2
3
4
5
6
7
8
9
1
171
172
173
174
175
176
177
178
179
180
SUSTAINABLE REVENUE GROWTH:

PROFIT MARGIN TO REVENUES
TOTAL ASSETS TO REVENUES
RETENTION RATIO - CURRENT RETAINED to NET INC.
RETENTION RATIO - CURRENT RETAINED to NET INC. - ADJ.
RETURN ON EQUITY (ROE)
RETURN ON ASSETS (ROA)
DEBT RATIO
2006
2007
2008
2009
2010
7.56%
56.88%
46.15%
46.15%
7.29%
56.78%
46.15%
8.01%
30.05%
12.84%
39.58%
2.85%
54.64%
46.15%
-18.49%
11.90%
5.83%
39.82%
3.72%
57.05%
46.15%
99.84%
11.95%
6.98%
31.19%
8.72%
59.64%
46.15%
88.26%
25.42%
14.96%
25.36%
11.84%
AVERAGE
AVERAGE
6.03%
57.00%
46.15%
44.75%
19.83%
10.16%
29.56%
% of
CURRENT
REVENUES
% of
AVERAGE
REVENUES
GROWTH
RATE in
DOLLARS
10
11
12
STANDARD
DEVIATION
PROBABILITY
LINKAGE TO
REVENUES
#15 REVENUE SUSTAINABILITY

NOMINAL REV GROWTH
PRICE ADJ REV
DEBT FINANCED
NO DEBT GROWTH
30.00%
25.00%
Green = continue Amber = warning Red = danger

181
182
183
184
185
186
187
188
189
20.00%
CURRENT YEAR REVENUE GROWTH RATE - NOMINAL
20.87%
10.32%
-5.86%
9.53%
8.72%
PRICE ADJUSTED ANNUAL REVENUE GROWTH RATE
24.78%
15.34%
-6.97%
3.29%
9.11%
SUSTAINABLE GROWTH (Equity Based)

SUSTAINABLE GROWTH (Equity Based) - adjusted
CURRENT YEAR REVENUE GROWTH RATE - NOMINAL
13.87%
2.41%
20.87%
5.49%
-2.20%
10.32%
5.52%
11.93%
-5.86%
11.73%
22.43%
9.53%
9.15%
8.64%
8.72%
PRICE ADJUSTED ANNUAL REVENUE GROWTH RATE
24.78%
15.34%
-6.97%
3.29%
9.11%
0.00%
5.93%
1.03%
2.69%
-1.08%
3.22%
6.97%
6.91%
13.21%
4.69%
5.03%
-5.00%
INTERNAL GROWTH (Asset Based)

INTERNAL GROWTH (Asset Based) - adjusted
15.00%
10.00%
5.00%
-10.00%

190
191
192
193
194
195
196
197
198
199
200
201
202
203
204
205
206
207
208
209
210
211
212
213
214
215
216
217
218
219
220
221
222
223
224
225
226
227
RATIO ANALYSIS:
FLOW RATIO
TOTAL CURRENT ASSETS
Less CASH & CASH EQUIVALENTS
ADJUSTED CURRENT ASSETS (Total less cash & equiv)
TOTAL CURRENT LIABILITIES
FLOW RATIO (Less than 1 desirable)
DEBT RATIO
TIMES INTEREST EARNED
OPERATING LEVERAGE
ACCOUNTS PAYABLE TO REVENUES
LONG TERM DEBT TO TOTAL LIABILITIES
LONG TERM DEBT TO TOTAL ASSETS
TOTAL LIABILITIES TO TOTAL ASSETS
TOTAL DEBT +/-$ TO REVENUES +/- $
2007
2006
2007
2008
2009
2010
AVERAGE
$1,530,000
313,000
1,217,000
1,936,000
0.63
$1,696,000
281,000
1,415,000
2,156,000
0.66
133.98%
0.00
80.53%
4.15%
29.54%
16.92%
57.26%
$0.53
$1,748,000
270,000
1,478,000
2,190,000
0.67
127.74%
9.60
91.22%
3.13%
31.18%
17.49%
56.09%
$0.13
$2,036,000
600,000
1,436,000
1,581,000
0.91
83.09%
15.36
89.69%
2.73%
37.53%
17.03%
45.38%
$1.07
$2,756,000
1,164,000
1,592,000
1,779,000
0.89
73.77%
44.55
77.27%
2.64%
34.38%
14.59%
42.45%
$0.19
$1,953,200
525,600
1,427,600
1,928,400
0.75
104.64%
0.00
84.68%
3.16%
33.16%
16.51%
50.30%
$0.48
0.79
0.47
16.57%
13.03%
($460,000)
$587,000
($460,000)
($1,364,000)
-8.61%
0.80
0.48
15.45%
12.33%
($442,000)
$697,000
$18,000
($1,434,000)
-7.79%
1.29
0.87
29.47%
37.95%
$455,000
$669,000
$897,000
($495,000)
8.16%
1.55
1.24
42.24%
65.43%
$977,000
$562,000
$522,000
$45,000
15.30%
1.11
0.77
25.93%
32.19%
$132,500
$628,750
$244,250
($812,000)
1.76%
REVENUES TO TOTAL ASSETS

WORKING CAPITAL TO REVENUES
ADJUSTED WORKING CAPITAL TO REVENUES
FIXED ASSETS TO REVENUES
ACCOUNTS RECEIVABLE TO REVENUES
REVENUES TO INVENTORY
NET INCOME +/-$ TO REVENUES +/-$
GROSS PROFIT MARGIN
NET PROFIT MARGIN
1.76
-4.89%
6.24%
30.71%
3.06%
13.64
$0.06
57.51%
7.29%
1.83
-4.26%
6.71%
28.48%
3.17%
14.98
($0.40)
55.26%
2.85%
1.75
4.65%
6.84%
25.94%
2.77%
14.70
($0.11)
55.75%
3.72%
1.68
9.12%
5.25%
22.59%
2.83%
19.75
$0.61
58.35%
8.72%
2009
2010
2006
2007
2008
>Yrly Dep Exp
-387,000.00
-467,000.00
-549,000.00
-535,000.00
-510,000.00
>Gross Fixed
4,256,000.00
5,306,000.00
5,718,000.00
5,701,000.00
5,891,000.00
2009
2010
-1,970,000.00
-2,416,000.00
-2,761,000.00
-3,165,000.00
-3,472,000.00
-2,416,000.00
-2,761,000.00
-3,165,000.00
-3,472,000.00
Assets (GFA)
>Accumulated
Depreciation
-467,000.00
-549,000.00
-535,000.00
-510,000.00
>Beg Acct Deprc
-1,949,000.00
-2,212,000.00
-2,630,000.00
-2,962,000.00
>Prior Actual
-1,970,000.00
-2,416,000.00
-2,761,000.00
-3,165,000.00
21,000.00
204,000.00
131,000.00
203,000.00
4,256,000.00
5,306,000.00
5,718,000.00
5,701,000.00
Accum Deprc
>Difference
>Prior Yr GFA
CURRENT RATIO
QUICK RATIO
CASH RATIO
CASH TO CURRENT LIAB.
WORKING CAPITAL
ADJUSTED WORKING CAPITAL (AWC)
CHANGE IN WORKING CAPITAL
NET WORKING CAPITAL
WORKING CAPITAL TO TOTAL ASSETS
2008
Minus Difference
21,000.00
204,000.00
131,000.00
203,000.00
4,235,000.00
5,102,000.00
5,587,000.00
5,498,000.00
>Current GFA
5,306,000.00
5,718,000.00
5,701,000.00
5,891,000.00
>Adj Prior GFA
4,235,000.00
5,102,000.00
5,587,000.00
5,498,000.00
CAPEX
1,071,000
616,000
114,000
393,000
1.76
1.16%
6.26%
26.93%
2.96%
15.77
$0.04
56.72%
5.65%
1
2
3
4
5
6
7
8
9
1
228
229
230
231
RETURN ON ASSETS (ROA)

ROA excluding other assets
ROA excluding other assets & excess cash or add deficit
RETURN ON ASSETS (ROA) with EFFICIENT FINANCING ONLY
RETURN ON ASSETS (ROA) with EFFICIENT FINANCING & FULLY ADJ.
232
233
234
235
236
237
238
239
240
241
242
243
244
245
246
247
248
249
250
251
252
253
254
255
256
257
258
259
260
261
262
263
264
265
266
267
268
269
270
271
272
273
274
275
276
277
278
279
280
281
282
283
284
285
DEBT LOAN CONSTANT

DEBT LOAN CONSTANT asset weighted
DEBT LOAN CONSTANT asset weighted & tax adjusted
RETURN ON GROSS FIXED ASSETS
GROSS AFTER TAX CASH FLOW
GROSS AFTER TAX CASH FLOW TO SALES
EMPLOYEES (FTEs) INCLUDING ANY OWNER OPERATORS
REVENUES PER FULL TIME EMPLOYEE
2006
0
#DIV/0!
2006
DUAL CASH FLOW ANALYSIS:

NET INCOME
PLUS: DEPRECIATION
PLUS OTHER
MINUS: INCOME TAX ACTUAL or @ 35% APPLIED
GROSS CASH FLOW (GCF)
Percentage to Revenues
ACCOUNTS RECEIVABLE - DECR/(INCR)
INVENTORY - DECR/(INCR)
OTHER CURRENT ASSETS - DECR/(INCR)
ACCOUNTS PAYABLE - INCR/(DECR)
OTHER CURRENT LIABILITIES - INCR/(DECR)
OPERATING CASH FLOW (OCF)
FIXED ASSETS - DECR/(INCR)
OTHER INVESTMENTS - DECR/(INCR)
INVESTING CASH FLOW (ICF)
CASH FLOW BEFORE FINANCING (CFBF)
CASH FLOW BEFORE FINANCING - adjusted
Conversion Ratio of Gross Cash Flow to CFBF adj
SHORT TERM DEBT - INCR/(DECR)
LONG TERM DEBT - INCR/(DECR)
DEBT FINANCING CASH FLOW (DFCF)
CAPITAL STOCK - INCR/(DECR)
PAID-IN or DISTRIBUTION ADJMT. - INCR/(DECR)
DISTRIBUTIONS - DIVIDENDS, TAX, & OTHER
TREASURY STOCK - INCR/(DECR)
EQUITY FINANCING CASH FLOW (EFCF)
FINANCING CASH FLOW (FCF)
12.84%
5.83%
6.98%
14.96%
2007
14.97%
20087.03%
20098.52%
2010
18.46%
15.94%
7.46%
9.80%
23.82%
14.87%
26.06%
7.16%
12.70%
8.08%
15.08%
18.86%
36.95%
0.06%
0.21%
0.28%
12.94%
30.05%
$1,153,400
12.25%
0
#DIV/0!
3.17%
10.54%
6.99%
5.18%
11.90%
$845,400
8.14%
0
#DIV/0!
4.11%
24.10%
15.67%
6.38%
11.95%
$899,000
9.20%
0
#DIV/0!
3.54%
24.26%
15.77%
15.86%
25.42%
$1,444,050
13.49%
0
#DIV/0!
2007
2010
10.16%
AVERAGE
12.24%
14.26%
12.25%
22.70%
2.72%
14.78%
9.67%
10.09%
19.83%
$1,085,463
10.77%
0
#DIV/0!
AVERAGE
2008
2009
$1,056,000
467,000
0
369,600
$1,153,400
12.25%
(64,000)
(54,000)
(80,000)
50,000
160,000
$12,000
0.13%
($1,071,000)
(145,000)
($1,216,000)
-12.92%
($50,600)
-0.54%
94,400
8.18%
-0.54%
10,000
640,000
$650,000
6.91%
0
(261,800)
(369,600)
0
($631,400)
-6.71%
$18,600
$456,000
549,000
0
159,600
$845,400
8.14%
(41,000)
(3,000)
(19,000)
(66,000)
97,000
($32,000)
-0.31%
($616,000)
(210,000)
($826,000)
-7.96%
($12,600)
-0.12%
197,400
23.35%
-0.12%
3,000
88,000
$91,000
0.88%
0
70,200
(159,600)
0
($89,400)
-0.86%
$1,600
$560,000
535,000
0
196,000
$899,000
9.20%
58,000
28,000
(44,000)
(58,000)
163,000
$147,000
1.50%
($114,000)
(37,000)
($151,000)
-1.54%
$895,000
9.16%
932,000
103.67%
9.16%
(714,000)
(42,000)
($756,000)
-7.73%
0
387,000
(196,000)
0
$191,000
1.95%
($565,000)
$1,437,000
510,000
0
502,950
$1,444,050
13.49%
(32,000)
123,000
(247,000)
16,000
182,000
$42,000
0.39%
($393,000)
(206,000)
($599,000)
-5.59%
$887,050
8.28%
1,093,050
75.69%
8.28%
0
(18,000)
($18,000)
-0.17%
0
197,900
(502,950)
0
($305,050)
-2.85%
($323,050)
$877,250
515,250
0
307,038
$1,085,463
11.29%
(19,750)
23,500
(97,500)
(14,500)
150,500
$42,250
0.44%
($548,500)
(149,500)
($698,000)
-7.26%
$429,713
4.47%
579,213
53.36%
4.47%
(175,250)
167,000
($8,250)
-0.09%
0
98,325
(307,038)
0
($208,713)
-2.17%
($216,963)
1,153,400
12,000
(1,216,000)
18,600
($32,000)
-2.77%
($32,000)
0
845,400
(32,000)
(826,000)
1,600
($11,000)
-1.30%
($11,000)
0
899,000
147,000
(151,000)
(565,000)
$330,000
36.71%
$330,000
0
1,444,050
42,000
(599,000)
(323,050)
$564,000
39.06%
$564,000
0
1,085,463
42,250
(698,000)
(216,963)
$212,750
2.21%
$212,750
% of
CURRENT
REVENUES
ROA
10
11
12
% of
GROWTH
STANDARD
AVERAGE
RATE in
PROBABILITY
DEVIATION
REVENUES #16
DOLLARS
RETURNS on ASSETS
ROA less OTHER
ROA FULLY ADJ
LINKAGE TO
REVENUES
ROA FINANCIAL EFFICIENT
40.00%
TOTAL LOAN CONSTANT
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
2007
2008
2009
2010
#17 CASH FLOWS

GROSS CF
$2,000,000
WORKING CAPITAL CF
INVESTING CF
$1,500,000
$1,000,000
$500,000
$0
($500,000)
($1,000,000)
($1,500,000)
2007
2008
2009
2010
#18 CASH FLOWS

CFBF
DEBT FINANCE
NET EQUITY
$1,000,000
$800,000
$600,000
$400,000
$200,000
$0
GROSS CASH FLOW (GCF)

OPERATING CASH FLOW (OCF)
INVESTING CASH FLOW (ICF)
FINANCING CASH FLOW
COMPREHENSIVE CASH FLOW (CCF)
Conversion Ratio of Gross Cash Flow to CCF
CASH BALANCE CHANGE
Difference
($200,000)
($400,000)
($600,000)
($800,000)
($1,000,000)
2007
2008
2009
2010
1
2
3
4
5
6
7
8
9
1
286
287
288
289
290
291
292
293
294
HISTORICAL CAPITALIZED CASH FLOW VALUE:
2006
2007
2008
2009
$845,400
(32,000)
34,450
(616,000)
$0
$231,850
$899,000
147,000
25,350
(114,000)
$0
$957,350
2010
WEIGHTED
AVERAGE
AVERAGE
VALUE
GROSS CASH FLOW

OPERATING CASH FLOW
ADD BACK AFTER TAX INTEREST EXPENSE
INVESTING CASH FLOW (less investment changes)
ADJUSTMENTS TO CASH FLOW (after tax)
DEBT FREE CASH FLOW BEFORE FINANCING
$1,153,400
12,000
0
(1,071,000)
$0
$94,400
$1,444,050
42,000
21,450
(393,000)
$0
$1,114,500
TOTAL ASSETS to NET INCOME (after tax) - CURRENT YEAR
7.79
17.15
14.32
6.68
9.29
296
TOTAL ASSETS to EBITDA - CURRENT YEAR
3.51
5.39
5.08
3.31
3.98
297
298
299
300
TOTAL ASSETS to DEBT FREE CASH FLOW - CURRENT YEAR
56.61
24.47
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
5.73
6.95
11.65%
11.65%
GROWTH
RATE in
DOLLARS
10
11
12
STANDARD
DEVIATION
PROBABILITY
LINKAGE TO
REVENUES
#19 MARKET VALUATION MULTIPLES

GMV P/E
GMV to EBITDA
GMV to DEBT FREE CASH FLOW
120.00
100.00
DISCOUNT RATE or WEIGHTED COST of CAPITAL

GROWTH RATE LONG TERM - NOMINAL GDP RATE
CAPITALIZATION RATE (CAP RATE) - inverse equals price multiple
18.15%
6.50%
CAP RATE
P/E RATIO
11.65%
CAPITALIZED GROSS VALUE

MINUS TOTAL LIABILITIES
REMARKS:
MARKET VALUE NET WORTH

MARKET VALUE TO BOOK NET WORTH
PLUS or MINUS WORKING CAPITAL CASH
TOTAL GROSS MARKET VALUE (GMV) to NET INCOME (after tax) - CURRENT YEAR
TOTAL GROSS MARKET VALUE (GMV) to EBITDA - CURRENT YEAR
TOTAL GROSS MARKET VALUE (GMV) to DEBT FREE CASH FLOW - CURRENT YEAR
GROSS EXTERNAL FINANCING NEED (EFN):
(using current assets and current liabilities)
REVENUES
CURRENT ASSETS TO REVENUES
CURRENT LIABILITIES TO REVENUES
CHANGE IN REVENUES
PROFIT MARGIN
RETAINED EARNINGS/NET INCOME
EFN $ AMOUNT: (EXCESS)
2006
$7,787,000
19.65%
24.86%
7.56%
7.34
7.07
80.00
$9,566,845
$2,711,000
$6,771,172
$2,711,000
60.00
$6,855,845
$4,060,172
186.55%
147.91%
$8,019,845
$4,585,772
16.21
6.95
12.13
AVERAGE
6.29
9.09
8.72
101.34
41.26
9.99
10.01
4.96
8.58
2007
2008
2009
2010
13.94
$9,412,000
18.02%
22.91%
$1,625,000
7.29%
46.15%
($134,116)
28.92
24.57
$10,383,000
16.84%
21.09%
$971,000
2.85%
46.15%
($54,128)
$9,775,000
20.83%
16.17%
($608,000)
3.72%
46.15%
($17,851)
$10,707,000
25.74%
16.62%
$932,000
8.72%
46.15%
$47,518
ADJ. WORKING CAP EXTERNAL FINANCING NEED (EFN):

(using ARs plus inventory & APs & other payables)
REVENUES
ACCOUNTS RECEIVABLE PLUS INVENTORY to REVENUES
ACCOUNTS PAYABLE to REVENUES
OTHER PAYABLES (in Current Liabilities) to REVENUES
CHANGE in REVENUES
PROFIT MARGIN to REVENUES
RETAINED EARNINGS/NET INCOME
EFN $ AMOUNT: (EXCESS)
40.00
20.00
0.00
2007
$9,612,800
20.21%
20.33%
$730,000
6.03%
46.15%
($39,644)
2008
2009
2010
($135,325)
($55,251)
$50,568
($118,826)
$135,325
$55,251
($50,568)
$118,826
#20 WORKING CAPITAL NEED

WORKING CAPITAL NEED

320
321
322
323
324
325
326
327
328
329
330
331
% of
AVERAGE
REVENUES
$1,131,740
55,700
23,075
(421,700)
$0
$788,815
295
5.83
% of
CURRENT
REVENUES
ANNUAL NET REVENUE CHANGE
2,000,000
2006
$7,787,000
11.04%
4.38%
11.48%
7.56%
2007
$9,412,000
10.39%
4.15%
11.20%
$1,625,000
7.29%
46.15%
($135,325)
2008
$10,383,000
9.84%
3.13%
11.09%
$971,000
2.85%
46.15%
($55,251)
2009
$9,775,000
9.58%
2.73%
13.44%
($608,000)
3.72%
46.15%
$50,568
2010
$10,707,000
7.89%
2.64%
13.97%
$932,000
8.72%
46.15%
($118,826)
AVERAGE
1,500,000
$9,612,800
9.75%
3.41%
12.24%
$730,000
6.03%
46.15%
($64,708)
1,000,000
500,000
0
(500,000)
(1,000,000)

332
2007
2008
2009
2010
10
1
2
3
4
5
6
7
8
9
1
333
334
335
336
337
338
339
340
341
342
343
344
345
346
347
348
349
350
351
352
353
354
355
356
357
358
359
360
361
CURRENT LINE OF CREDIT NEED:

CASH BALANCE
2008
2009
2010
AVERAGE
AVERAGE
$1,500,000
$281,000
$270,000
$600,000
$1,164,000
$525,600
201,900
(692,100)
1,005,100
700,000
$1,705,100
270,200
(783,800)
1,064,800
710,000
$1,774,800
560,200
(590,800)
860,800
713,000
$1,573,800
501,000
(813,000)
1,413,000
0
$1,413,000
130,900
(1,365,100)
2,529,100
0
$2,529,100
332,840
(848,960)
1,374,560
424,600
$1,799,160
(1,705,100)
(1,774,800)
(1,573,800)
(1,413,000)
(2,529,100)
NEEDED TOTAL CASH BALANCE in WORKING CAPITAL
($1,392,100)
($1,493,800)
($1,303,800)
($813,000)
($1,365,100)
1,392,100
1,493,800
1,303,800
813,000
1,365,100
$1,154,380
964,000
190,380
$1,416,900
1,614,000
(197,100)
$1,466,860
1,705,000
(238,140)
$1,279,030
950,000
329,030
$1,212,020
932,000
280,020
$1,305,838
1,233,000
72,838
1.06
1.62
0.87
0.48
1.01
2007
2008
2009
2010
AVERAGE
WORKING CAPITAL / TOTAL ASSETS

(x 6.56)
ENDING RETAINED EARNINGS / TOTAL ASSETS
(x 3.26)
EARNINGS PRE - INTEREST EXP & INC TAX / TOTAL ASSETS
(x 6.72)
NET WORTH / TOTAL LIABILITIES
(x 1.05)
ALTMAN Z SCORE:
12
2007
$313,000
ALTMAN Z BANKRUPTCY SCORE:
11
2006
NEEDED LINE of CREDIT (LOC) (assuming no cash)

NEEDED LOC (including other payables)
CASH minus NEEDED ADJUSTED LOC
OUTSTANDING LOC BALANCE
EXCESS or (SHORTFALL) CASH BALANCE or LOC
MAXIMUM POTENTIAL BORROWING CAPACITY 65/40/33 net fixed

TOTAL INTEREST BEARING LIABILITIES OUTSTANDING
BORROWING AVAILABILITY or (OVER-BORROWED)
INTEREST BEARING DEBT to EBITDA MULTIPLE
10
% of
% of
GROWTH
STANDARD
LINKAGE TO
CURRENT #21
AVERAGE
RATE
in
WORKING
CAPITAL
CASH &PROBABILITY
LOC NEEDREVENUES
DEVIATION
REVENUES
REVENUES
DOLLARS
CASH BALANCE
WC CASH NEED
LOC NEED
2006
-9.17%
-0.60
50.30%
1.64
20.46%
1.37
101.32%
1.06
-8.61%
-0.56
47.62%
1.55
19.76%
1.33
74.64%
0.78
3.10
-7.79%
-0.51
47.27%
1.54
8.97%
0.60
78.28%
0.82
2.45
8.16%
0.54
51.10%
1.67
10.74%
0.72
120.35%
1.26
4.19
15.30%
1.00
51.37%
1.67
23.02%
1.55
135.56%
1.42
5.65
($1,273,560)
$1,000,000
$500,000
$0
($500,000)
($1,000,000)
($1,500,000)
($2,000,000)
($2,500,000)
($3,000,000)
2006
2007
2008
2009
2010
-0.42%
-0.03
49.53%
1.61
16.59%
1.11
102.03%
1.07
3.85

362
11
1
2
3
4
5
6
7
8
9
1
363
364
365
366
367
368
369
370
371
372
373
374
375
376
NET TRADE CYCLE or CASH CONVERSION CYCLE:

ANNUAL YEAR END - NON-AVERAGED
NUMBER OF DAYS TIED UP IN
ACCOUNTS RECEIVABLE TO REVENUES
CASH RELEASE or (USE) from ACCOUNTS RECEIVABLE
NUMBER OF DAYS TIED UP IN
INVENTORIES to REVENUES
CASH RELEASE or (USE) from INVENTORIES
LESS: NUMBER OF DAYS TIED UP IN
ACCOUNTS PAYABLE to REVENUES
CASH RELEASE or (USE) from ACCOUNTS PAYABLE
2006
2007
2008
2009
2010
AVERAGE
10
11
($17,255)
11
($11,288)
10
$38,735
10
($6,161)
11
$1,007
29
#DIV/0!
26
$78,721
24
$68,185
24
($12,580)
18
$186,405
25
$80,183
16
15
($21,160)
11
($106,338)
10
($38,969)
10
($9,457)
12
($43,981)
NET TRADE CYCLE DAYS:
24
22
24
25
19
% of
CURRENT
REVENUES
% of
AVERAGE
REVENUES
GROWTH
RATE in
DOLLARS
10
11
12
STANDARD
DEVIATION
PROBABILITY
LINKAGE TO
REVENUES
23

377
378
379
380
381
382
383
384
385
386
387
388
389
390
391
392
393
394
395
396
397
398
399
400
401
402
403
404
405
CAPITAL CASH NEEDS FOR FULL NET TRADE CYCLE

DAILY OPERATIONAL EXPENSE CASH NEEDS
NET CASH RELEASE or USE from TRADE CYCLE
CASH GAIN or (LOSS) per Chg in NET TRADE DAYS
WEIGHTED AVERAGE COST OF CAPITAL:
(using all interest bearing debt)
OVERALL BORROW RATE AFTER TAX
FINANCED DEBT to FINANCED DEBT plus EQUITY - percentage
EQUITY to LONG TERM DEBT plus EQUITY - percentage
$515,066
$22,941
$40,306
$26,144
2006
ACTUAL WEIGHTED COST OF CAPITAL:

ADJ. COST of CAP. with assumed ROE of 26.5% annually
MONTHLY DISCOUNT PERCENTAGE
ROE % / OPERATING EARNINGS GROWTH %

DUPONT FORMULA - ROI, ROE, and ECONOMIC VALUE ADDED (EVA):
(return on invested capital & return on equity)
REVENUES DIVIDED BY TOTAL ASSETS
NET OPERATING INCOME (NOI) AFTER TAX DIVIDED BY REVENUES
TOTAL ASSETS DIVIDED BY TOTAL EQUITY
NET INCOME AFTER TAX DIVIDED BY REVENUES
RETURN ON INVESTED CAPITAL ROI:
ADJUSTED RETURN ON EQUITY ROE:
RETURN ON EQUITY ROE:
ROI minus ADJUSTED WEIGHTED COST OF CAPITAL
CUMULATIVE EVA PREMIUM or (DEFICIT) WEALTH
2006
$640,249
$26,493
($49,441)
($28,842)
$607,473
$24,656
($12,814)
($27,153)
$486,203
$170,786
$29,742
$562,248
$24,696
$37,209
2007
2008
2009
2010
AVERAGE
0.00%
30.05%
41.41%
58.59%
0.00%
11.90%
40.63%
59.37%
0.00%
11.95%
23.77%
76.23%
0.00%
25.42%
20.23%
79.77%
0.00%
19.83%
31.51%
68.49%
17.61%
15.53%
7.06%
15.73%
9.11%
20.20%
20.27%
21.14%
13.51%
18.15%
1.29%
1.31%
1.68%
1.76%
1.51%
1.68
(0.23)
1.04
0.17
0.66
2007
2008
2009
2010
AVERAGE
176.12%
7.28%
233.98%
7.29%
12.82%
30.00%
30.05%
183.02%
3.16%
227.74%
2.85%
5.77%
13.15%
11.90%
175.27%
3.74%
183.09%
3.72%
6.55%
11.99%
11.95%
167.66%
8.62%
173.77%
8.72%
14.45%
25.12%
25.42%
175.52%
5.70%
204.64%
5.65%
9.90%
20.06%
19.83%
-2.71%
-9.96%
-13.65%
-6.69%
-8.25%
($144,687)
($709,564)
($1,470,815)
($1,897,753)
($1,055,705)

406
12

Business Ferret Sample Coffee Roaster 040111

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Business Ferret Sample Coffee Roaster 040111

Uploaded by

Copyright:

Available Formats

Coffee Roaster with Coffee Shops

#1 REAL REVENUE GROWTH

#2 SUSTAINABLE REVENUE GROWTH

PRICE ADJUSTED REVENUE GROWTH

#5 EBITDA to ACTUAL CASH FLOW

CORE OPER EXP%

#6 DEBT FREE CASH FLOW

#4 OPERATING EXPENSE CONTROL

GROSS PROFIT MARK-UP INDEX

CFBF DEBT FREE

ADJUSTED CFBF DEBT FREE

#8 RETURN on ASSETS (ROA)

#7 USE of EXCESS CASH

EXCESS NET CASH

#10 USE of DEBT FINANCING

LONG TERM DEBT

ADJ COST of CAPITAL %

#12 ECONOMIC VALUE ADDED (EVA)

#11 NET TRADE CYCLE

#9 WORKING CAPITAL NEEDS

REAL REVENUE GROWTH

SUSTAINABLE REVENUE GROWTH

OPERATING EXPENSE CONTROL

EBITDA to ACTUAL CASH FLOW

DEBT FREE CASH FLOW

USE of EXCESS CASH

RETURN on ASSETS (ROA)

WORKING CAPITAL NEEDS

USE of DEBT FINANCING

NET TRADE CYCLE

ECONOMIC VALUE ADDED (EVA)

Coffee Roaster with Coffee Shops

March 31, 2011

Privately Held Company - Financials Calendar Year End - Accrual Basis

(all numbers in 1,000s)

TOTAL NET REVENUES

Annual Percentage Increase or Decrease in Net Revenues

COSTS OF REVENUES (net of depreciation) same as COGS

REVENUE PRICING POLICY

CORE OPERATING EXPENSE (excluding deprec. & amort. exp.)

DIFFERENCE between GP & EXPENSE NET ANNUAL % CHANGE

#13 INCREMENTAL ANNUAL CHANGES

WEIGTHED AVERAGE REAL REVENUE GROWTH RATE

AVERAGE SUSTAINABLE REVENUE GROWTH EQUITY BASED

NET OPERATING INCOME or (LOSSES)

NET OPERATING INCOME or (LOSS) or NOI

Net Operating Income to Revenues

ANNUAL NOI CHANGE in $'s

RESTORING AVG. NOI %

REVs. to RESTORE $ MARGIN

OPER EXP CHG

LESS INCOME TAXES @ 35% or REFUNDS

#14 INCREMENTAL ANNUAL CHANGES

(all numbers in 1,000s)

TOTAL CURRENT ASSETS

TOTAL NET FIXED ASSETS

TOTAL OTHER ASSETS

TOTAL LONG TERM DEBT

LONG TERM LIABILITIES

WORKING CAPITAL GAP with CASH BALANCE

Annual Equity Percentage Changes

TOTAL LIABILITIES & NET WORTH

Book Equity Pricing