Teuer Sheet (B) - Navam Gupta - 033 (828302)

These spreadsheet exhibits relate to the case Teuer Furniture (B): Multiples Valuation, Case #KEL790.
2014 by the Kellogg School of Management at Northwestern University. This case was prepared by Professor
Mitchell A. Petersen. Teuer Furniture is a fictional company whose profile was created based on data from real
industry leaders. Cases are developed solely as the basis for class discussion. Cases are not intended to serve
as endorsements, sources of primary data, or illustrations of effective or ineffective management. To order
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Case #KEL790.
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are not intended to serve
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ay be reproduced, stored
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Exhibit 1-A: Bassett Furniture Industries Inc (BSET)

Income Statement
12/31/2012
12/31/2011
269.7
253.2
Cost of goods sold
128.4
125.6
Selling, general, and administrative
134.8
122.0
0.0
0.0
Revenue
Depreciation
R&D
Other expenses (income)
Interest expenses (net)
0.0
0.0
-5.2
-54.8
-0.2
0.6
12.0
59.7
-14.7
4.4
26.7
55.3
Earnings before interest and taxes
11.7
60.3
Adjusted taxes (all equity firm)
-14.4
4.4
26.1
55.9
12/31/2012
12/31/2011
Cash and equivalents
45.6
69.6
Accounts receivable
15.8
14.8
Inventory
57.9
45.1
Other current assets
13.3
10.7
Income before taxes

Taxes
Net Income
Adjusted income (all equity firm)
Net income (all equity firm)

Balance Sheet
Assets
Total current assets
132.5
140.2
Property, plant, and equipment
56.6
49.9
Goodwill and other intangibles
0.0
0.0
38.0
33.0
94.7
83.0
227.2
223.2
Accounts payable
22.4
18.8
Accrued expenses
17.4
17.7
0.0
0.0
Other long-term assets

Total long-term assets
Total assets
Liabilities
Notes payable
Current maturities of long-term debt
Other current liabilities
Total current liabilities
Long-term debt and capital leases
0.0
0.0
12.8
15.3
52.6
51.8
3.1
3.7
Other liabilities
14.3
15.3
Common equity
157.3
152.4
227.2
223.2
Total liabilities and shareholder's equity

Financial Data
Cash flow to assets
-2.2
Stock price
Common shares outstanding
14.2
10.9
Market value of equity
154.7
Enterprise value
112.2
Ratios and Summary Data

Sales growth
Gross profit margin
Net profit margin
AR/sales
6.5%
7.6%
52.4%
50.4%
9.9%
21.9%
5.8%
5.8%
Inventory/CGS
45.1%
35.9%
AP/CGS
17.5%
15.0%
Net investment
28.3
Multiples
Asset price/Cash flow assets
NMF
Asset price/Adjusted net income
4.3x
Asset price/Sales
0.4x
Equity price/Net income
5.8x
g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
Debt to Equity Ratio
0.1416327569
9.9%
-12.3928955223
0.6611436065
0.0194112411
2%
12/31/2010
12/31/2009
12/31/2008
235.3
232.7
288.3
122.6
129.9
110.8
103.8
0.0
0.0
0.0
0.0
4.9
21.6
-0.8
2.0
-2.2
-24.5
-0.2
-1.8
-2.0
-22.7
-3.0
-22.5
-0.3
-1.7
-2.7
-20.9
12/31/2010
12/31/2009
11.1
23.2
31.6
34.6
41.8
33.4
7.0
13.3
91.5
104.5
46.3
50.6
15.1
14.9
44.5
46.1
105.8
111.7
197.3
216.2
24.9
14.7
17.4
17.2
0.0
0.0
9.5
4.4
10.1
7.0
61.8
43.3
4.3
32.0
24.9
30.7
106.3
110.3
197.3
216.2
6.8
4.9
5.6689134658
1.1%
-19.3%
47.9%
44.2%
-0.8%
-9.8%
13.4%
14.9%
34.1%
25.7%
20.3%
11.3%
Exhibit 1-B: Ethan Allen Interiors Inc (ETH)

Income Statement
6/30/2012
6/30/2011
6/30/2010
6/30/2009
6/30/2008
729.4
679.0
590.1
674.3
980.0
Cost of goods sold
339.1
329.5
309.8
326.9
322.0
296.7
262.6
394.5
18.6
20.8
29.4
25.6
R&D
0.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0
8.5
5.6
7.1
8.4
41.2
26.4
-18.8
-81.2
Revenue
Depreciation
Income before taxes

Taxes
-8.5
-2.9
25.5
-28.5
49.7
29.3
-44.3
-52.7
49.7
31.9
-11.7
-72.8
-10.2
-3.5
15.9
-25.5
59.9
35.4
-27.7
-47.2
6/30/2012
6/30/2011
6/30/2010
6/30/2009
88.7
91.4
84.9
53.0
Accounts receivable
14.9
15.0
17.1
13.1
155.7
141.7
134.0
156.5
Net Income
Balance Sheet
Assets
Inventory
23.4
20.4
23.6
29.2
282.8
268.5
259.7
251.7
295.7
294.9
305.7
333.6
45.1
45.1
45.1
45.1
21.2
19.8
21.2
16.1
362.0
359.8
372.1
394.8
Total assets
644.8
628.3
631.8
646.5
Accounts payable
27.3
27.0
24.0
22.2
Accrued expenses
58.0
65.0
65.3
58.5
Notes payable
0.0
0.0
0.0
0.0
0.3
0.0
3.9
0.0
65.5
62.6
52.6
31.7
151.1
154.6
145.7
112.5
154.3
165.0
199.4
203.1
Liabilities

Other liabilities
17.8
27.0
28.2
25.0
Common equity
321.7
281.7
258.5
305.9
644.8
628.3
631.7
646.5
Financial Data
Cash flow to assets
27.7
Stock price
19.9
28.8
573.1
Enterprise value
638.9

Sales growth
7.4%
15.1%
-12.5%
-31.2%
53.5%
51.5%
47.5%
51.5%
Net profit margin
6.8%
4.3%
-7.5%
-7.8%
AR/sales
2.0%
2.2%
2.9%
1.9%
45.9%
43.0%
43.3%
47.9%
AP/CGS
8.1%
8.2%
7.7%
6.8%
Net investment
32.1
Gross profit margin
Inventory/CGS
Multiples
23.0x
10.7x
Asset price/Sales
g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
0.9x
11.5x
0.0662791059
6.8%
7.4885002291
1.2419576799
0.4803059036
32%
Exhibit 1-C: Furniture Brands International Inc (FBN)

Income Statement
12/29/2012
12/31/2011
1072.3
1107.7
Cost of goods sold
827.3
837.1
252.8
270.9
18.9
21.9
0.0
0.0
16.6
20.8
Revenue
Depreciation
R&D
5.7
3.6
-49.0
-46.6
-1.8
-2.8
-47.3
-43.8
-43.4
-43.0
-1.6
-2.6
-41.8
-40.4
12/29/2012
12/31/2011
11.9
25.4
Accounts receivable
125.7
108.0
Inventory
244.3
228.2
11.3
9.5
393.2
371.0
103.4
115.8
76.1
77.5
45.7
50.2
225.2
243.5
Total assets
618.4
614.5
Accounts payable
113.6
85.6
Accrued expenses
58.7
53.6
Notes payable
0.0
0.0
0.0
0.0
0.0
0.0
172.3
139.2
Income before taxes

Taxes
Net Income
Balance Sheet
Assets

Liabilities

105.0
77.0
Other liabilities
286.3
266.1
Common equity
54.8
132.3
618.4
614.5
Financial Data
Cash flow to assets
Stock price
-5.8
7.4

Enterprise value
8.0
59.7
152.8
93.1

Sales growth
-3.2%
-4.5%
Gross profit margin
22.8%
24.4%
Net profit margin
-4.4%
-3.9%
AR/sales
11.7%
9.7%
Inventory/CGS
29.5%
27.3%
AP/CGS
13.7%
10.2%
Net investment
(36.0)
Multiples
Asset Price/Cash flow assets
NMF
NMF
Asset Price/Sales
0.1x
Equity Price/Net income
NMF
g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
-0.1795620438
-4.4%
-0.2771131359
3.9207596806
1.9160583942
12/31/2010
12/31/2009
12/31/2008
1159.9
1224.4
1744.5
879.2
986.2
285.2
322.8
23.9
20.7
0.0
0.0
16.5
65.8
3.2
5.3
-47.9
-176.5
-8.9
-67.8
-39.0
-108.7
-44.8
-171.1
-8.3
-65.7
-36.4
-105.4
12/31/2010
12/31/2009
52.0
83.9
114.5
184.5
249.7
226.1
11.2
9.3
427.4
503.7
124.9
134.4
86.5
87.6
37.6
32.4
249.0
254.4
676.4
758.1
79.9
83.8
61.2
75.9
0.0
0.0
0.0
17.0
0.0
0.0
141.1
176.8
77.0
78.0
198.8
240.6
259.6
262.8
676.4
758.1
-5.3%
-29.8%
24.2%
19.5%
-3.4%
-8.9%
9.9%
15.1%
28.4%
22.9%
9.1%
8.5%
-0.14974606
Exhibit 1-D: Haverty Furniture Companies Inc (HVT)

Income Statement
12/31/2012
12/31/2011
670.4
621.4
Cost of goods sold
318.0
300.2
309.6
297.8
19.4
18.2
0.0
0.0
-0.8
-0.2
Revenue
Depreciation
R&D
0.6
0.7
23.5
4.6
8.6
-10.9
14.9
15.5
24.1
5.3
8.8
-12.6
15.3
17.9
12/31/2012
12/31/2011
53.6
49.6
Income before taxes

Taxes
Net Income
Balance Sheet
Assets
Accounts receivable
9.7
11.5
Inventory
96.9
93.7
19.7
22.9
179.9
177.7
193.1
179.3
0.0
0.0
29.1
28.1
222.2
207.4
Total assets
402.1
385.1
Accounts payable
28.2
21.2
Accrued expenses
11.8
11.0
Notes payable
0.0
0.0
0.9
0.8
49.0
39.4
89.9
72.4
18.5
12.3
Other liabilities
34.3
37.8
Common equity
259.4
262.7
402.1
385.1
Liabilities

Financial Data
Cash flow to assets
16.2
Stock price
16.3
22.3
362.9
Enterprise value
328.7

Sales growth
7.9%
0.2%
52.6%
51.7%
Net profit margin
2.2%
2.5%
AR/sales
1.4%
1.8%
Gross profit margin
Inventory/CGS
30.5%
31.2%
AP/CGS
8.9%
7.1%
Net investment
(0.9)
Multiples
20.3x
21.5x
Asset Price/Sales
g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
0.5x
24.3x
-0.0212003238
2.2%
44.6415548509
-0.0416775249
0.0745865937
12/31/2010
12/31/2009
12/31/2008
620.3
588.3
691.1
301.6
282.8
295.4
292.2
16.9
19.3
0.0
0.0
-3.0
-1.4
0.8
0.8
8.7
-5.4
0.2
-1.2
8.4
-4.2
9.5
-4.6
0.3
-1.0
9.2
-3.6
12/31/2010
12/31/2009
58.1
44.5
13.8
15.3
91.9
93.3
13.2
15.2
176.9
168.3
175.5
176.4
0.0
0.0
17.7
16.2
193.2
192.6
370.2
360.9
18.1
19.1
31.4
30.2
0.0
0.0
0.5
0.4
20.6
21.8
70.6
71.4
8.6
6.8
37.9
38.1
253.2
244.6
370.2
360.9
5.5%
-14.9%
51.4%
51.9%
1.4%
-0.7%
2.2%
2.6%
30.5%
33.0%
6.0%
6.8%
Exhibit 1-E: La-Z-Boy Incorporated (LZB)

Income Statement
4/28/2012
4/30/2011
1231.7
1187.1
Cost of goods sold
851.8
832.8
306.7
299.7
23.5
24.3
0.0
0.0
-18.6
2.1
Revenue
Depreciation
R&D
1.4
2.3
66.9
26.0
-22.0
8.6
88.9
17.4
68.2
28.3
-22.5
9.4
90.7
18.9
4/28/2012
4/30/2011
152.4
115.3
Accounts receivable
167.2
161.3
Inventory
143.8
138.4
36.6
17.2
500.0
432.2
114.4
120.6
3.0
3.1
68.3
37.5
185.7
161.2
Total assets
685.7
593.5
Accounts payable
56.6
49.5
Accrued expenses
44.9
37.4
Notes payable
0.0
0.0
1.8
5.1
46.4
40.0
149.8
132.1
Income before taxes

Taxes
Net Income
Balance Sheet
Assets

Liabilities

7.9
29.9
Other liabilities
86.1
70.1
Common equity
441.9
361.3
685.7
593.4
Financial Data
Cash flow to assets
72.5
Stock price
15.3
52.2
801.4
Enterprise value
658.8

Sales growth
3.8%
0.7%
30.8%
29.8%
7.2%
1.5%
AR/sales
13.6%
13.6%
Inventory/CGS
Gross profit margin

Net profit margin
16.9%
16.6%
AP/CGS
6.6%
5.9%
Net investment
18.2
Multiples
9.1x
7.3x
Asset price/Sales
0.5x
9.0x
g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
0.0153428377
7.2%
37.5936681811
2.6874127404
0.0220864449
4/24/2010
4/25/2009
4/25/2008
1179.2
1226.7
1450.9
804.5
887.9
307.5
408.7
25.2
24.1
0.0
0.0
-5.8
-2.6
3.0
5.6
44.7
-97.0
12.7
24.3
32.1
-121.3
47.7
-91.4
13.5
22.9
34.2
-114.4
4/24/2010
4/25/2009
108.4
36.1
165.0
147.9
132.5
140.2
21.2
23.7
427.1
347.8
138.9
150.2
3.1
3.1
38.8
51.4
180.7
204.8
607.8
552.5
54.7
41.6
51.7
75.7
0.0
0.0
1.1
8.7
39.8
0.0
147.3
126.0
46.9
52.1
73.7
68.6
339.8
305.7
607.8
552.5
-3.9%
-15.5%
31.8%
27.6%
2.7%
-9.9%
14.0%
12.1%
16.5%
15.8%
6.8%
4.7%
Exhibit 1-F: Restoration Hardware Holdings Inc (RN)

Income Statement
Revenue
2/2/2013
1/28/2012
1193.0
958.1
Cost of goods sold
756.6
601.7
390.4
327.9
0.0
0.0
Depreciation
R&D
Income before taxes
Taxes
0.0
0.0
115.1
1.6
5.8
5.1
-74.8
21.7
-62.0
1.1
-12.8
20.6
-69.0
26.8
-57.2
1.4
-11.8
25.5
2/2/2013
1/28/2012
8.4
8.5
17.0
11.8
353.3
245.9
Net Income
Balance Sheet
Assets
Accounts receivable
Inventory
114.0
56.7
492.8
322.9
111.4
83.6
172.7
175.1
12.7
5.3
296.9
263.9
Total assets
789.6
586.8
Accounts payable
81.6
47.4
Accrued expenses
63.7
58.3
Notes payable
0.0
0.0
2.9
4.1
Liabilities
71.1
52.2
219.4
162.0
84.1
122.3
Other liabilities
34.5
52.1
Common equity
451.6
250.5
789.6
586.8
Financial Data
Cash flow to assets
-173.8
Stock price
70.3
38.9
2735.5
Enterprise value
2814.2

Sales growth
24.5%
24.0%
Gross profit margin (revenue-CGS)/Revenue
36.6%
37.2%
net profit margin (net profit/revenue)
-1.1%
2.2%
1.4%
1.2%
AR/sales
Inventory/CGS
46.7%
40.9%
AP/CGS
10.8%
7.9%
Net investment
161.9
Multiples
NMF
NMF
Asset Price/Sales
2.4x
NMF
g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
0.3109667391
-1.1%
-14.5724140268
0.4099329693
0.1927056693
1/29/2011
1/30/2010
1/30/2010
772.8
625.7
288.3
499.0
423.1
274.8
238.9
0.0
0.0
0.0
0.0
2.1
-10.5
3.2
3.2
-6.4
-29.0
0.7
-0.4
-7.1
-28.6
-3.2
-25.8
0.4
-0.4
-3.6
-25.5
1/29/2011
1/30/2010
13.4
13.2
4.5
4.5
206.4
149.0
20.4
18.8
244.6
185.5
76.5
62.2
178.5
182.3
2.5
1.5
257.4
246.0
502.0
431.5
51.4
47.0
39.3
37.8
0.0
0.0
2.4
1.9
36.6
30.5
129.7
117.2
111.8
57.4
44.6
35.8
215.8
221.1
502.0
431.5
23.5%
117.0%
35.4%
32.4%
-0.9%
-4.6%
0.6%
0.7%
41.4%
35.2%
10.3%
11.1%
Exhibit 1-G: Stanley Furniture Company (STLY)

Income Statement
12/31/2012
12/31/2011
98.6
104.6
Cost of goods sold
85.9
92.2
Revenue
16.5
17.6
Depreciation
1.8
1.6
R&D
0.0
0.0
-39.0
-4.1

2.3
2.3
31.0
-5.0
0.7
0.0
30.4
-5.0
33.4
-2.7
0.7
0.0
32.7
-2.7
12/31/2012
12/31/2011
35.9
15.7
Accounts receivable
10.0
10.3
Inventory
35.1
31.1
6.1
5.5
87.2
62.5
19.9
17.6
0.0
0.0
3.7
0.5
23.6
18.1
110.7
80.6
Accounts payable
8.7
10.0
Accrued expenses
6.2
6.5
Notes payable
0.0
0.0
0.0
0.0
0.0
0.0
14.9
16.5
0.0
0.0
Other liabilities
8.6
7.1
Common equity
87.2
57.0
110.7
80.6
Income before taxes

Taxes
Net Income
Balance Sheet
Assets


Total assets
Liabilities
Financial Data
Cash flow to assets
Stock price
22.7
4.5
14.6
65.6
Enterprise value
29.6

Sales growth
-5.8%
-23.6%
Gross profit margin
12.9%
11.9%
Net profit margin
30.8%
-4.8%
AR/sales
10.2%
9.8%
Inventory/CGS
40.8%
33.7%
AP/CGS
10.1%
10.8%
Net investment
10.0
Multiples
1.3x
0.9x
Asset price/Sales
0.3x
2.2x
g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
0.0942686841
30.8%
230.747694017
0.9788148875
0
12/31/2010
12/31/2009
12/31/2008
137.0
160.5
226.5
153.1
158.7
11.2
20.7
9.4
6.0
0.0
0.0
7.5
-9.5
3.5
3.7
-47.8
-19.1
-4.0
-7.4
-43.8
-11.7
-44.2
-15.4
-3.7
-5.9
-40.5
-9.5
12/31/2010
12/31/2009
25.5
41.8
13.8
22.2
25.7
37.2
6.9
8.3
72.0
109.6
16.0
31.4
0.0
9.1
0.4
0.5
16.4
40.9
88.4
150.5
9.1
11.6
7.7
9.2
0.0
0.0
2.4
1.4
0.0
0.0
19.2
22.3
0.0
26.4
7.4
8.9
61.8
92.9
88.4
150.4
-14.6%
-29.2%
-11.8%
1.1%
-32.0%
-7.3%
10.1%
13.8%
16.8%
23.5%
6.0%
7.3%
Exhibit 1-H: Tempur Sealy International Inc (TPX)

Income Statement
12/31/2012
12/31/2011
1402.9
1417.9
Cost of goods sold
688.3
674.8
Revenue
408.7
341.7
Depreciation
42.0
51.0
R&D
15.6
9.9
0.3
0.2

18.8
11.9
229.2
328.4
122.4
108.8
106.8
219.6
248.0
340.3
132.4
112.7
115.6
227.6
12/31/2012
12/31/2011
554.3
111.4
Accounts receivable
Income before taxes

Taxes
Net Income
Balance Sheet
Assets
129.8
142.4
Inventory
93.0
91.2
56.5
34.8
833.6
379.8
186.0
160.5
279.2
279.8
26.7
18.1
491.9
458.4
1325.5
838.1
Accounts payable
85.8
69.9
Accrued expenses
84.3
52.6
Notes payable
0.0
0.0
0.0
0.0
16.1
45.1
186.2
167.6

Total assets
Liabilities

1025.0
585.0
Other liabilities
53.6
54.8
Common equity
60.7
30.8
1325.5
838.2
Financial Data
Cash flow to assets
88.5
Stock price
31.5
59.7
1880.0
Enterprise value
2350.7

Sales growth
-1.1%
28.3%
Gross profit margin
50.9%
52.4%
Net profit margin
7.6%
15.5%
AR/sales
9.3%
10.0%
Inventory/CGS
13.5%
13.5%
AP/CGS
12.5%
10.4%
Net investment
27.1
Multiples
26.6x
20.3x
Asset price/Sales
g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
1.7x
17.6x
0.2934102142
7.6%
25.6426359505
1.8145195075
16.8863261944
12/31/2010
12/31/2009
12/31/2008
1105.4
831.2
927.8
550.0
437.5
258.1
208.6
44.0
40.2
7.4
0.0
0.5
-0.4
14.5
17.3
230.9
128.0
73.7
43.0
157.2
85.0
245.4
145.4
78.4
48.9
167.0
96.5
12/31/2010
12/31/2009
53.6
14.0
115.6
105.6
69.9
57.7
32.4
31.7
271.5
209.0
159.8
172.5
281.2
258.1
3.5
3.8
444.5
434.4
716.0
643.4
48.3
47.8
60.3
81.5
0.0
0.0
0.0
0.0
37.7
7.3
146.2
136.5
407.0
297.5
36.7
37.1
126.0
172.3
716.0
643.4
33.0%
-10.4%
50.2%
47.4%
14.2%
10.2%
10.5%
12.7%
12.7%
13.2%
8.8%
10.9%
0.9444444444
Exhibit 1-I: Williams-Sonoma Inc (WSM)

Income Statement
2/3/2013
1/29/2012
4042.9
3720.9
Cost of goods sold
2450.4
2261.0
1035.9
940.1
134.5
130.6
0.0
0.0
13.0
7.5
Revenue
Depreciation
R&D
-0.8
-0.1
410.0
381.8
153.2
144.9
256.7
236.9
409.2
381.7
152.9
144.9
256.2
236.9
2/3/2013
1/29/2012
424.6
502.8
Income before taxes

Taxes
Net Income
Balance Sheet
Assets
Accounts receivable
63.0
46.0
Inventory
640.0
553.5
189.2
174.2
1316.8
1276.4
812.0
734.7
0.0
0.0
58.9
49.8
870.9
784.5
2187.7
2060.8
Accounts payable
259.2
218.3
Accrued expenses
120.6
111.8
Notes payable
0.0
0.0
1.7
1.8
275.6
239.9
657.1
571.8

Total assets
Liabilities

3.8
5.5
Other liabilities
217.7
228.3
Common equity
1309.1
1255.3
2187.7
2060.8
Financial Data
Cash flow to assets
Stock price
126.0
43.8
97.7
4277.6
Enterprise value
3858.6

Sales growth
8.7%
6.2%
39.4%
39.2%
Net profit margin
6.4%
6.4%
AR/sales
1.6%
1.2%
Inventory/CGS
26.1%
24.5%
AP/CGS
10.6%
9.7%
Net investment
130.3
Gross profit margin
Multiples
30.6x
15.1x
Asset price/Sales
g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
1.0x
16.7x
0.0844982202
6.4%
0.8303784573
1.1374596995
0.0041783155
1/30/2011
1/31/2010
1/31/2009
3504.2
3102.7
3364.7
2130.3
1999.5
888.3
797.1
144.6
151.8
0.0
0.0
17.5
32.7
0.4
1.4
323.1
120.3
122.8
42.8
200.2
77.5
323.4
121.7
123.0
43.3
200.4
78.3
1/30/2011
1/31/2010
628.4
513.9
41.6
44.2
513.4
466.1
164.3
155.9
1347.6
1180.2
730.6
829.0
0.0
0.0
53.6
69.9
784.2
899.0
2131.7
2079.2
228.0
188.2
122.4
107.7
0.0
0.0
1.5
1.6
259.8
265.9
611.7
563.5
7.1
8.7
254.1
295.4
1258.9
1211.6
2131.7
2079.2
12.9%
-7.8%
39.2%
35.6%
5.7%
2.5%
1.2%
1.4%
24.1%
23.3%
10.7%
9.4%
Exhibit 2: Teuer Furniture

Income Statement
12/31/2012
12/31/2011
148.2
134.1
Cost of goods sold
62.0
55.5
41.3
36.7
Depreciation
1.5
1.8
R&D
0.0
0.0
7.4
6.7
Revenue
0.0
0.0
36.1
33.4
14.4
13.4
21.7
20.0
36.1
33.4
14.4
13.4
21.7
20.0
12/31/2012
12/31/2011
0.0
0.0
Accounts receivable
48.2
42.4
Inventory
33.3
29.2
0.0
0.0
Income before taxes

Taxes
Net Income

Balance Sheet
Assets

81.5
71.6
3.9
3.1
0.0
0.0
0.0
0.0
3.9
3.1
85.5
74.8
Accounts payable
11.4
10.0
Accrued expenses
1.7
1.5
Notes payable
0.0
0.0
0.0
0.0
0.0
0.0
13.0
11.5
0.0
0.0
Other liabilities
0.0
0.0
Common equity
72.4
63.3
85.5
74.8

Total assets
Liabilities

Financial Data
Cash flow to assets
12.5
Stock price
9.9
0.0
Enterprise value
0.0

Sales growth
10.5%
20.3%
Gross profit margin
58.2%
58.6%
Net profit margin
14.6%
14.9%
AR/sales
32.5%
31.6%
Inventory/CGS
53.8%
52.7%
AP/CGS
18.3%
18.0%
Net investment
9.1
Multiples
0.0x
0.0x
Asset Price/Sales
0.0x
0.0x
g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
0.126258465
14.6%
0.7667289419
1
0
12/31/2010
12/31/2009
12/31/2008
111.5
90.7
79.2
49.1
47.3
32.5
29.6
2.0
2.2
0.0
0.0
5.6
5.4
0.0
0.0
22.2
6.2
8.9
0.5
13.3
5.6
22.2
6.2
8.9
0.5
13.3
5.6
12/31/2010
12/31/2009
0.0
0.0
36.6
29.1
26.8
24.9
0.0
0.0
63.4
53.9
3.8
5.1
0.0
0.0
0.0
0.0
3.8
5.1
67.3
59.0
9.1
8.3
1.4
1.2
0.0
0.0
0.0
0.0
0.0
0.0
10.5
9.5
0.0
0.0
0.0
0.0
56.8
49.6
67.3
59.0
22.9%
14.5%
56.0%
47.8%
12.0%
6.2%
32.9%
32.0%
54.6%
52.6%
18.6%
17.5%
1.49697
355.68 35.76471
Exhibit: Comparable Firm Characteristics

Firm Characteristic
Online
Manufacturing
BSET
N
Y
ETH
N
Y
FBN
N
Y
HVT
N
N
LZB
N
Y
RN
Y
N
STLY
Y
Y
TPX
Y
Y
WSM
Y
N
International
Import
N
Y
Y
N
Y
N
Y
Y
Y
Y
N
N
N
Y
Y
N
Y
N
Lease
Teuer
N
N
N
N
Y
Exhibit: Multiples of Comparable Firms

Multiples
Growth CAGR of Sales
Growth CAGR of Net Income
g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
Assumption: Asset Discount Rate
BSET
HVT
LZB
5.0%
#VALUE!
14.2%
ETH
2.7%
#VALUE!
6.6%
-4.3%
-26.5%
-18.0%
4.5%
#VALUE!
-2.1%
0.1%
#VALUE!
1.5%
24.0%
-22.5%
31.1%
-15.0%
#VALUE!
9.4%
19.1%
6.2%
29.3%
9.2%
48.4%
8.4%
17.8%
56.7%
12.6%
0.0%
9.9%
0.0%
6.8%
0.0%
-4.4%
0.0%
2.2%
0.0%
7.2%
0.0%
-1.1%
0.0%
30.8%
0.0%
7.6%
0.0%
6.4%
0.0%
14.6%
-1239.3%
66.1%
748.9%
124.2%
-27.7%
392.1%
4464.2%
-4.2%
3759.4%
268.7%
-1457.2%
41.0%
23074.8%
97.9%
2564.3%
181.5%
83.0%
113.7%
76.7%
100.0%
0.02
0.48
1.92
0.07
0.02
0.19
0.00
16.89
0.00
0.00
12.10%
FBN
RN
STLY
TPX
WSM
Teuer
BSET & WSM selected on the basis of business and financial characteristics
Multiples

Asset price/Sales
BSET
NMF
4.29
0.42
5.80
ncial characteristics
Teuer E.V.
NA
92.97
61.64
125.6
Share price
NA
9.35
6.20
12.63
WSM
30.63
15.06
0.95
16.66
Teuer E.V.
383.12
326.03
141.46
360.74
Share price
38.52
32.78
14.22
36.27
Avg of multiples
NA
9.68
0.69
11.23
Teur (EV)
NA
209.50
101.55
243.17
Share price
NA
21.07
10.21
24.45

Teuer Sheet (B) - Navam Gupta - 033 (828302)

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Teuer Sheet (B) - Navam Gupta - 033 (828302)

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These spreadsheet exhibits relate to the case Teuer Furniture (B): Multiples Valuation, Case #KEL790.

Exhibit 1-A: Bassett Furniture Industries Inc (BSET)

Cost of goods sold

Selling, general, and administrative

Earnings before interest and taxes

Adjusted taxes (all equity firm)

Cash and equivalents

Other current assets

Income before taxes

Net income (all equity firm)

Total current assets

Property, plant, and equipment

Goodwill and other intangibles

Other long-term assets

Total liabilities and shareholder's equity

Market value of equity

Ratios and Summary Data

Asset price/Adjusted net income

Equity price/Net income

Exhibit 1-B: Ethan Allen Interiors Inc (ETH)

Cost of goods sold

Selling, general, and administrative

Other expenses (income)

Interest expenses (net)

Income before taxes

Earnings before interest and taxes

Adjusted taxes (all equity firm)

Cash and equivalents

Net income (all equity firm)

Property, plant, and equipment

Goodwill and other intangibles

Other long-term assets

Total long-term assets

Current maturities of long-term debt

Total current assets

Other current liabilities

Total liabilities and shareholder's equity

Common shares outstanding

Market value of equity

Ratios and Summary Data

Net profit margin

Gross profit margin

Asset price/Adjusted net income

Exhibit 1-C: Furniture Brands International Inc (FBN)

Cost of goods sold

Selling, general, and administrative

Earnings before interest and taxes

Adjusted taxes (all equity firm)

Property, plant, and equipment

Goodwill and other intangibles

Other long-term assets

Total long-term assets

Current maturities of long-term debt

Other current liabilities

Income before taxes

Net income (all equity firm)

Other current assets

Total current liabilities

Total liabilities and shareholder's equity

Common shares outstanding

Ratios and Summary Data

Gross profit margin

Net profit margin