Professional Documents
Culture Documents
25.00%
SUSTAINABLE REV
#3 PRICING POLICY
NOMINAL REV
GP MARK-UP CHANGE
22.50%
4.00%
3.01%
1.26
20.00%
1.26
25.00%
20.00%
3.00%
2.00%
1.25
17.50%
1.00%
1.25
15.00%
15.00%
12.50%
10.00%
10.00%
8%
-2.00%
1.23
6%
4%
5.00%
-1.00%
-0.82%
1.24
9%
7.50%
5.00%
0.00%
1.24
-3.00%
-2.68%
1.23
-4.00%
1.22
2.50%
1.22
0.00%
0.00%
2007
2008
2009
2007
2010
GP$
NOI%
GP%
25.00%
$3,000,000
20.00%
2008
2009
2006
2010
2007
CFBF ACTUAL
2008
2009
-6.00%
2010
-5.00%
-4.94%
CFBF ACTUAL
$1,500,000
2,500,000
2,000,000
$1,000,000
1,500,000
$2,500,000
$500,000
1,000,000
15.00%
$2,000,000
500,000
$0
10.00%
$1,500,000
($500,000)
$1,000,000
(500,000)
($1,000,000)
(1,000,000)
5.00%
$500,000
0.00%
$0
2006
2007
2008
2009
($1,500,000)
(1,500,000)
(2,000,000)
2010
($2,000,000)
2007
CASH BALANCE
2009
2010
2007
2008
RETURN on ASSETS
ADJUSTED ROA
2008
2009
2010
EFFICIENT ROA
CASH
14.00%
$9,000,000
$2,000,000
12.00%
$8,000,000
$1,500,000
10.00%
$1,000,000
8.00%
$5,000,000
$500,000
6.00%
$4,000,000
$0
4.00%
($500,000)
2.00%
($1,000,000)
0.00%
ARs
INVENTORY
ACCTS PAYABLE
WC Need
$7,000,000
$6,000,000
$3,000,000
$2,000,000
2007
2008
2009
$1,000,000
$0
2010
2007
EQUITY
2008
2009
2006
2010
CURRENT LIAB
AR Cash
INV CASH
AP Cash
Cash Conversion
NTC Days
$16,000,000
$2,000,000
120
14.00%
$14,000,000
$1,500,000
100
12.00%
$12,000,000
$1,000,000
$10,000,000
2007
2008
2009
2010
80
$500,000
$8,000,000
ROA %
ROI %
EVA$
$0
($500,000)
10.00%
8.00%
($1,000,000)
6.00%
($1,500,000)
60
$0
$6,000,000
40
($500,000)
$4,000,000
($1,000,000)
$2,000,000
$0
($1,500,000)
2006
2007
2008
2009
2010
2007
2008
2009
2010
4.00%
20
2.00%
0.00%
($2,000,000)
($2,500,000)
2007
2008
2009
2010
#1
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PRICING POLICY
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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
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
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
2007
2008
2009
2010
2011
10,129,000
8,123,000
12,455,000
9,914,000
13,861,000
11,109,000
14,600,000
11,725,000
16,240,000
13,200,000
2,006,000
2,541,000
2,752,000
2,875,000
3,040,000
1,186,000
1,481,000
1,533,000
1,630,000
1,667,000
1,049,000
1,295,000
1,260,000
1,295,000
1,125,000
137,000
0
186,000
0
273,000
0
335,000
0
542,000
0
1,186,000
1,481,000
1,533,000
1,630,000
1,667,000
820,000
1,060,000
1,219,000
1,245,000
1,373,000
0
0
0
0
0
0
0
0
0
0
0
(41,000)
0
(27,000)
0
(33,000)
0
(61,000)
0
(71,000)
(41,000)
(27,000)
(33,000)
(61,000)
(71,000)
779,000
322,000
1,033,000
320,000
1,186,000
310,000
1,184,000
440,000
1,302,000
375,000
457,000
713,000
876,000
744,000
927,000
2007
2008
2009
2010
2011
767,000
509,000
892,000
2,210,000
4,262,000
6,051,000
4,914,000
5,536,000
5,877,000
285,000
0
367,000
0
551,000
0
499,000
0
592,000
0
5,314,000
6,927,000
6,357,000
8,245,000
7,285,000
1,177,000
1,312,000
1,505,000
1,750,000
1,862,000
0
(634,000)
0
(698,000)
0
(796,000)
0
(956,000)
543,000
614,000
709,000
794,000
816,000
0
0
(1,018,000)
844,000
2,610,000
3,024,000
3,913,000
4,773,000
6,621,000
8,467,000
10,565,000
10,979,000
13,812,000
14,750,000
2007
2008
2009
2010
2011
1,545,000
2,223,000
1,494,000
1,665,000
1,515,000
1,930,000
2,650,000
2,830,000
3,070,000
3,045,000
0
0
0
0
0
0
0
0
0
0
3,475,000
4,873,000
4,324,000
4,735,000
4,560,000
810,000
533,000
653,000
1,225,000
1,421,000
0
0
0
0
0
0
0
0
0
0
810,000
533,000
653,000
1,225,000
1,421,000
4,285,000
5,406,000
4,977,000
5,960,000
5,981,000
10,000
10,000
10,000
10,000
10,000
0
0
0
0
0
0
0
0
0
0
10,000
10,000
10,000
10,000
10,000
0
3
Tetra Tech, Inc. is a provider of consulting, engineering, program management, construction management and technical
services focusing on resource management, infrastructure and the environment. The Company serves public and private
clients by addressing the fundamental needs for water, natural resources, environmental services, infrastructure and energy.
Its solutions span the entire life cycle of the project and include applied science, research and technology, engineering,
design, construction management, construction, operations and maintenance, and information technology. The Company
operates in four segments: Engineering and Consulting Services (ECS), Technical Support Services (TSS), Engineering and
Architecture Services (EAS) and Remediation and Construction Management (RCM). On August 6, 2010, the Company
acquired EBA Engineering Consultants, Ltd. On October 4, 2010, Tetra Tech, Inc. acquired BPR, Inc., a Canadian scientific
and engineering services firm. SOURCE: GOOGLE
ENGINEERING FIRM
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WARNING
Financial data provided through ENGINEERING FIRM. The financial statements are NOT audited or assured by BUSINESS FERRET LLC.
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INCOME STATEMENT
REVENUES
2006
2007
2008
2009
GROSS REVENUES:
Other Revenues
Other Revenues
Returns, Refunds, and Discounts
Write-downs
$10,129,000
0
0
0
0
$10,129,000
$12,455,000
0
0
0
0
$12,455,000
22.96%
0.75%
22.21%
29.62
2,326,000
$2,752,000
19.85%
8.30%
-2.68%
$1,406,000
$211,000
15.01%
$2,875,000
19.69%
4.47%
-0.82%
$739,000
$123,000
16.64%
$3,040,000
18.72%
5.74%
-4.94%
$1,640,000
$165,000
10.06%
2.60%
-4.85%
-3.05%
-8.66%
535,000
1.25
1,195,000
211,000
11,725,000
80.31%
5.55%
616,000
123,000
$13,457,000
0
0
0
0
$13,457,000
-0.33%
11.25%
18.83
13,200,000
81.28%
12.58%
TOTAL EXPENSES:
Total Expenses to Revenues
Annual Percentage Increase or Decrease in Operating Expense
Total Core Operating Expenses to Revenues
STANDARD
DEVIATION
11
12
PROBABILITY
LINKAGE TO
REVENUES
$2,642,800
19.69%
11.30%
18.72%
19.64%
10.95%
399,840
15.13%
98.54%
1,475,000
165,000
$9,832,637
($296,363)
$12,455,000
$0
$13,489,240
($371,760)
$14,092,139
($507,861)
$14,900,905
($1,339,095)
$12,953,984
($503,016)
2006
2007
2008
2009
2010
AVERAGE
6.93%
4.79%
-1.86%
3.47%
246,000
(35,000)
35,000
(170,000)
GP CHG
GP %
21%
21%
20%
AVERAGE
1.25
1.80%
COGS CHG
$2,000,000
-0.33%
-0.16%
($56,273)
$1,125,000
0
542,000
0
1,667,000
10.26%
2.27%
1.23
8.87%
100.00%
3.56%
99.94%
-1.20%
-1.33%
($194,320)
($216,267)
9.09%
17.15%
ASSET BASED
17.70%
1.25
10.40%
100.00%
1,914,512
-0.20%
-0.14%
($29,540)
($19,730)
10.36%
17.15%
12.91%
1.25
$1,295,000
0
335,000
0
1,630,000
11.16%
6.33%
12.53%
2,307,290
0
0
0
0
2,307,290
6.80%
80.36%
-0.68%
0.07%
($94,633)
$9,313
$1,260,000
0
273,000
0
1,533,000
11.06%
3.51%
12.53%
81.28%
1.26
$1,295,000
0
186,000
0
1,481,000
11.89%
24.87%
100.00%
0.00%
0.00%
0.00%
0.00%
100.00%
10,814,200
80.31%
13.06%
0.75%
0.75%
$93,402
$93,402
$1,049,000
0
137,000
0
1,186,000
11.71%
100.00%
0.00%
0.00%
0.00%
0.00%
100.00%
$1,500,000
20%
$1,000,000
19%
19%
$500,000
OPERATING EXPENSES
(all numbers in 1,000s)
GROWTH
RATE in
DOLLARS
1,640,000
$2,541,000
20.40%
26.67%
3.01%
$2,326,000
$535,000
23.00%
11,109,000
80.15%
12.05%
739,000
$16,240,000
0
0
0
0
$16,240,000
11.23%
-1.20%
12.43%
10.39
$2,006,000
19.80%
1,406,000
$14,600,000
0
0
0
0
$14,600,000
5.33%
-0.20%
5.53%
27.35
9,914,000
79.60%
22.05%
$13,861,000
0
0
0
0
$13,861,000
11.29%
-0.68%
11.97%
17.53
8,123,000
80.20%
1,791,000
GROSS PROFIT
AVERAGE
% of
AVERAGE
REVENUES
1st Qtr
2010
% of
CURRENT
REVENUES
DANGER
10
$1,204,800
0
294,600
0
1,499,400
11.22%
9.25%
18%
$0
18%
2007
% of
CURRENT
REVENUES
% of
AVERAGE
REVENUES
2008
GROWTH
RATE in
DOLLARS
2009
STANDARD
DEVIATION
2010
PROBABILITY
LINKAGE TO
REVENUES
6.93%
0.00%
3.34%
8.95%
1.76%
111,760
9.28%
32.13%
2.19%
41.03%
158,064
53.65%
93.18%
10.26%
11.14%
8.88%
190,285
12.69%
96.27%
9.13%
2.05%
Financial data provided through ENGINEERING FIRM. The financial statements are NOT audited or assured by BUSINESS FERRET LLC.
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7
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73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
2006
$820,000
8.10%
2007
240,000
OTHER INCOME
INTEREST INCOME
GAIN on SALE of ASSETS
OTHER
OTHER
TOTAL OTHER INCOME
OTHER EXPENSE
INTEREST EXPENSE
ANNUAL INTEREST RATE ON ALL INTEREST BEARING DEBT
LOSS on SALE of ASSETS
OTHER
OTHER
TOTAL OTHER EXPENSE
0
0
0
0
0
(41,000)
5.06%
0
0
0
(41,000)
7.7%
PRE-TAX INCOME
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
2008
$1,060,000
8.51%
29.27%
$240,000
10.32%
2009
$1,219,000
8.79%
15.00%
$159,000
11.31%
159,000
0
0
0
0
0
(27,000)
5.07%
0
0
0
(27,000)
8.3%
2010
$1,245,000
8.53%
2.13%
$26,000
3.52%
26,000
0
0
0
0
0
(33,000)
5.05%
0
0
0
(33,000)
8.6%
AVERAGE
$1,373,000
8.45%
10.28%
$128,000
7.80%
$1,143,400
8.48%
14.17%
% of
CURRENT
REVENUES
% of
AVERAGE
REVENUES
8.45%
(61,000)
4.98%
0
0
0
(61,000)
8.1%
8.50%
13.75%
0.50%
10
11
12
STANDARD
DEVIATION
PROBABILITY
LINKAGE TO
REVENUES
212,307
18.57%
99.29%
($2,715,735)
8.24%
128,000
0
0
0
0
0
GROWTH
RATE in
DOLLARS
(71,000)
5.00%
0
0
0
(71,000)
8.0%
0
0
0
0
0
(46,600)
5.03%
0
0
0
(46,600)
8.2%
GP CHG
$600,000
NOI CHG
NET INC %
8.60%
$500,000
8.50%
$400,000
8.40%
$300,000
8.30%
$200,000
8.20%
$100,000
8.10%
$0
8.00%
($100,000)
7.90%
($200,000)
7.80%
($300,000)
$779,000
322,000
457,000
137,000
594,000
5.86%
$1,033,000
320,000
713,000
186,000
899,000
7.22%
$1,186,000
310,000
876,000
273,000
1,149,000
8.29%
$1,184,000
440,000
744,000
335,000
1,079,000
7.39%
$1,302,000
375,000
927,000
542,000
1,469,000
9.05%
$1,096,800
353,400
743,400
294,600
1,038,000
7.56%
8.02%
2.31%
5.71%
9.05%
7.71%
1.04%
2008
13.70%
3.88%
19.34%
41.03%
25.40%
820,000
8.10%
957,000
9.45%
1,060,000
8.51%
1,246,000
10.00%
(227,450)
-1.83%
186,550
1.50%
(245,000)
-1.97%
1,219,000
8.79%
1,492,000
10.76%
317,450
2.29%
1,206,450
8.70%
296,000
2.14%
1,245,000
8.53%
1,580,000
10.82%
(320,350)
-2.19%
539,650
3.70%
(360,000)
-2.47%
1,373,000
8.45%
1,915,000
11.79%
(1,533,850)
-9.44%
314,150
1.93%
(1,580,000)
-9.73%
1,143,400
8.48%
1,438,000
10.57%
(441,050)
-2.79%
561,700
3.96%
(472,250)
-3.01%
8.45%
8.50%
11.79%
10.69%
-9.44%
-3.28%
20078.15%
2.63%
5.52%
1.93%
4.17%
-9.73%
-3.51%
7.70%
2009
201,702
54,661
183,195
2010
18.39%
15.47%
24.64%
98.22%
55.41%
91.61%
322,576
31.08%
97.68%
13.75%
212,307
18.57%
99.29%
18.94%
360,151
25.05%
99.42%
780,967
-177.07%
-76.13%
18.97%
453,948
80.82%
-3.62%
791,951
-167.70%
-76.71%
Financial data provided through ENGINEERING FIRM. The financial statements are NOT audited or assured by BUSINESS FERRET LLC.
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
302,000
767,000
4,262,000
0
285,000
0
$5,314,000
(276,000)
509,000
6,051,000
0
367,000
0
$6,927,000
868,000
892,000
4,914,000
0
551,000
0
1,713,000
2,210,000
5,536,000
0
499,000
0
51,000
816,000
5,877,000
0
592,000
0
531,600
1,038,800
5,328,000
0
502,250
0
0.35%
5.53%
39.84%
0.00%
4.01%
0.00%
4.54%
8.87%
45.48%
1.56%
8.36%
781,790
670,347
737,419
147.06%
64.53%
13.84%
23.87%
33.86%
64.97%
4.29%
20.05%
128,931
25.67%
94.48%
$6,357,000
$8,245,000
$7,285,000
$6,825,600
49.39%
58.27%
8.21%
1,088,640
15.95%
76.05%
0.00%
0.00%
12.62%
12.99%
12.15%
287,661
18.91%
96.37%
FIXED ASSETS
LAND
BUILDINGS/LEASE IMPROVEMENTS
PLANT& EQUIPMENT
OFFICE EQUIPMENT
TRANSPORTATION EQUIPMENT
(LESS: ACCUMULATED DEPRECIATION EXPENSE)
0
0
1,177,000
0
0
(634,000)
0
$543,000
0
0
1,312,000
0
0
(698,000)
0
0
1,505,000
0
0
(796,000)
0
0
1,750,000
0
0
(956,000)
0
0
1,862,000
0
0
(1,018,000)
1,521,200
0
0
(820,400)
-6.90%
-7.00%
164,130
-20.01%
-94.93%
$614,000
$709,000
$794,000
$844,000
$700,800
5.72%
5.98%
11.66%
124,192
17.72%
97.76%
2,610,000
0
2,610,000
3,024,000
0
3,024,000
3,913,000
0
3,913,000
4,773,000
0
4,773,000
6,621,000
0
6,621,000
4,188,200
0
4,188,200
44.89%
0.00%
44.89%
35.75%
26.20%
1,595,487
38.09%
93.35%
35.75%
26.20%
1,595,487
38.09%
93.35%
$8,467,000
$10,565,000
$10,979,000
$13,812,000
$14,750,000
$11,714,600
100.00%
100.00%
14.89%
2,550,604
21.77%
95.61%
OTHER ASSETS
GOODWILL
OTHER INTANGIBLE ASSETS
$302,000
($276,000)
$868,000
$1,713,000
$51,000
$531,600
Financial data provided through ENGINEERING FIRM. The financial statements are NOT audited or assured by BUSINESS FERRET LLC.
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
$1,545,000
1,930,000
0
0
0
2008
2008
$2,223,000
2,650,000
0
0
0
$
$3,475,000
2009
2009
$1,494,000
2,830,000
0
0
0
$
$4,873,000
2010
2010
AVERAGE
$1,665,000
3,070,000
0
0
0
$1,515,000
3,045,000
0
0
0
$1,688,400
2,705,000
0
0
0
$4,735,000
$4,560,000
$4,393,400
% of
CURRENT
REVENUES
10.27%
20.64%
0.00%
0.00%
0.00%
% of
AVERAGE
REVENUES
14.41%
23.09%
10
GROWTH
RATE in
DOLLARS
-0.49%
12.07%
STANDARD
DEVIATION
306,091
465,859
7.03%
552,887
11
12
LINKAGE TO
REVENUES
18.13%
-22.88%
17.22%
94.16%
PROBABILITY
$
$4,324,000
30.92%
18.47%
12.94%
37.50%
20.76%
11.89%
12.58%
66.67%
$810,000
0
0
0
0
0
$533,000
0
0
0
0
0
$653,000
0
0
0
0
0
$1,225,000
0
0
0
0
0
$1,421,000
0
0
0
0
0
$928,400
0
0
0
0
0
9.63%
7.93%
15.09%
379,747
40.90%
68.16%
$810,000
$533,000
$653,000
$1,225,000
$1,421,000
$928,400
9.63%
7.93%
15.09%
379,747
40.90%
68.16%
40.55%
45.43%
8.69%
714,628
13.43%
87.80%
36.85%
6.28%
39.85%
6.35%
7.72%
19.34%
603,623
183,195
12.93%
24.64%
93.68%
91.61%
40.59%
43.18%
9.45%
59.45%
54.57%
-12.61%
100.00%
100.00%
$4,285,000
$5,406,000
$4,977,000
$5,960,000
$5,981,000
$5,321,800
$10,000
0
4,037,000
457,000
(322,000)
0
0
4,172,000
0
$4,182,000
$10,000
584,000
4,172,000
713,000
(320,000)
0
0
4,565,000
0
$5,159,000
23.36%
$10,000
861,000
4,565,000
876,000
(310,000)
0
0
5,131,000
0
$6,002,000
16.34%
$10,000
2,407,000
5,131,000
744,000
(440,000)
0
0
5,435,000
0
$7,852,000
30.82%
$10,000
1,324,800
4,668,000
743,400
(353,400)
0
0
5,058,000
0
$6,392,800
20.55%
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
$8,467,000
$10,565,000
$10,979,000
$13,812,000
$10,000
2,772,000
5,435,000
927,000
(375,000)
0
0
5,987,000
0
$8,769,000
11.68%
$877.00
10,000,000
$8,770,000
100.01%
10.57%
0.00%
$14,750,000
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
$11,714,600
14.89%
713,888
14.11%
98.48%
1,893,292
29.62%
95.67%
2,550,604
21.77%
95.61%
Financial data provided through ENGINEERING FIRM. The financial statements are NOT audited or assured by BUSINESS FERRET LLC.
1
2
3
4
5
6
7
8
9
1
171
172
173
174
175
176
177
178
179
180
AVERAGE
AVERAGE
2006
2007
2008
2009
2010
4.51%
83.59%
29.54%
29.54%
5.72%
84.83%
55.12%
137.03%
13.82%
6.52%
10.33%
6.32%
79.21%
64.61%
162.90%
14.60%
7.22%
10.88%
5.10%
94.60%
40.86%
364.38%
9.48%
5.86%
15.60%
5.71%
90.83%
59.55%
358.58%
10.57%
6.05%
16.20%
5.47%
86.61%
49.94%
210.48%
12.12%
6.41%
14.48%
22.96%
11.29%
5.33%
11.23%
12.70%
19.37%
% of
CURRENT
REVENUES
% of
AVERAGE
REVENUES
GROWTH
RATE in
DOLLARS
10
11
12
STANDARD
DEVIATION
PROBABILITY
LINKAGE TO
REVENUES
DEBT FINANCED
NO DEBT GROWTH
25.00%
20.00%
22.21%
11.97%
5.53%
12.43%
13.04%
15.00%
7.62%
18.94%
22.96%
9.43%
23.78%
11.29%
3.87%
34.53%
5.33%
6.29%
37.91%
11.23%
6.80%
28.79%
12.70%
10.00%
22.21%
11.97%
5.53%
12.43%
13.04%
3.59%
8.94%
4.66%
11.76%
2.39%
21.35%
3.60%
21.70%
3.56%
15.93%
5.00%
0.00%
RATIO ANALYSIS:
FLOW RATIO
TOTAL CURRENT ASSETS
Less CASH & CASH EQUIVALENTS
ADJUSTED CURRENT ASSETS (Total less cash & equiv)
TOTAL CURRENT LIABILITIES
FLOW RATIO (Less than 1 desirable)
DEBT RATIO
TIMES INTEREST EARNED
OPERATING LEVERAGE
ACCOUNTS PAYABLE TO REVENUES
LONG TERM DEBT TO TOTAL LIABILITIES
LONG TERM DEBT TO TOTAL ASSETS
TOTAL LIABILITIES TO TOTAL ASSETS
TOTAL DEBT +/-$ TO REVENUES +/- $
2007
2006
2007
2008
2009
2010
AVERAGE
$5,314,000
767,000
4,547,000
3,475,000
1.31
$6,927,000
509,000
6,418,000
4,873,000
1.32
104.79%
39.26
58.28%
17.85%
9.86%
5.04%
51.17%
$0.48
$6,357,000
892,000
5,465,000
4,324,000
1.26
82.92%
36.94
55.70%
10.78%
13.12%
5.95%
45.33%
($0.31)
$8,245,000
2,210,000
6,035,000
4,735,000
1.27
75.90%
20.41
56.70%
11.40%
20.55%
8.87%
43.15%
$1.33
$7,285,000
816,000
6,469,000
4,560,000
1.42
68.21%
19.34
54.84%
9.33%
23.76%
9.63%
40.55%
$0.01
$6,825,600
1,038,800
5,786,800
4,393,400
1.32
82.96%
0.00
56.38%
12.34%
16.82%
7.37%
45.05%
$0.38
1.42
1.42
7.35%
10.45%
$2,054,000
$3,828,000
$2,054,000
$1,521,000
19.44%
1.47
1.47
14.03%
20.63%
$2,033,000
$3,420,000
($21,000)
$1,380,000
18.52%
1.74
1.74
26.80%
46.67%
$3,510,000
$3,871,000
$1,477,000
$2,285,000
25.41%
1.60
1.60
11.20%
17.89%
$2,725,000
$4,362,000
($785,000)
$1,304,000
18.47%
1.56
1.56
14.85%
23.91%
$2,580,500
$3,870,250
$681,250
$1,622,500
20.46%
1.18
16.49%
30.73%
4.93%
48.58%
1.26
14.67%
24.67%
5.12%
35.45%
1.06
24.04%
26.51%
5.44%
37.92%
1.10
16.78%
26.86%
5.20%
36.19%
$0.11
20.40%
5.72%
$0.12
19.85%
6.32%
($0.18)
19.69%
5.10%
$0.11
18.72%
5.71%
2009
2010
2006
2007
2008
-137,000.00
-186,000.00
-273,000.00
-335,000.00
-542,000.00
>Gross Fixed
1,177,000.00
1,312,000.00
1,505,000.00
1,750,000.00
1,862,000.00
2009
2010
-634,000.00
-698,000.00
-796,000.00
-956,000.00
-1,018,000.00
-698,000.00
Assets (GFA)
>Accumulated
Depreciation
-796,000.00
-956,000.00
-1,018,000.00
-186,000.00
-273,000.00
-335,000.00
-542,000.00
-512,000.00
-523,000.00
-621,000.00
-476,000.00
>Prior Actual
-634,000.00
-698,000.00
-796,000.00
-956,000.00
122,000.00
175,000.00
175,000.00
480,000.00
1,177,000.00
1,312,000.00
1,505,000.00
1,750,000.00
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
122,000.00
175,000.00
175,000.00
480,000.00
1,055,000.00
1,137,000.00
1,330,000.00
1,270,000.00
>Current GFA
1,312,000.00
1,505,000.00
1,750,000.00
1,862,000.00
1,055,000.00
1,137,000.00
1,330,000.00
1,270,000.00
CAPEX
257,000
368,000
420,000
592,000
1.15
17.99%
27.20%
5.17%
39.54%
#DIV/0!
$0.04
19.67%
5.71%
Financial data provided through ENGINEERING FIRM. The financial statements are NOT audited or assured by BUSINESS FERRET LLC.
1
2
3
4
5
6
7
8
9
1
228
229
230
231
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
2006
0
#DIV/0!
6.52%
7.22%
5.86%
6.05%
20079.14%
2008
11.21%
20098.95%
2010
10.98%
8.81%
12.78%
11.05%
11.05%
6.03%
13.10%
7.83%
19.65%
6.50%
16.69%
5.83%
16.57%
5.07%
100.41%
65.27%
54.34%
13.82%
$899,000
7.22%
0
#DIV/0!
5.05%
84.97%
55.23%
58.21%
14.60%
$1,149,000
8.29%
0
#DIV/0!
4.98%
56.15%
36.49%
42.51%
9.48%
$1,079,000
7.39%
0
#DIV/0!
5.00%
51.86%
33.71%
49.79%
10.57%
$1,469,000
9.05%
12,000
$1,353,333
6.41%
AVERAGE
10.07%
10.92%
6.55%
16.50%
5.02%
73.35%
47.68%
51.21%
12.12%
$1,149,000
7.99%
2,400
#DIV/0!
% of
CURRENT
REVENUES
ROA
10
11
12
% of
GROWTH
STANDARD
AVERAGE
RATE in
PROBABILITY
DEVIATION
REVENUES #16
DOLLARS
RETURNS on ASSETS
ROA less OTHER
LINKAGE TO
REVENUES
25.00%
TOTAL LOAN CONSTANT
20.00%
15.00%
10.00%
5.00%
2006
2007
2008
2009
2010
AVERAGE
$1,033,000
186,000
0
320,000
$899,000
7.22%
(1,789,000)
0
(82,000)
678,000
720,000
($473,000)
-3.80%
($257,000)
(414,000)
($671,000)
-5.39%
($245,000)
-1.97%
169,000
18.80%
-1.97%
0
(277,000)
($277,000)
-2.22%
0
584,000
(320,000)
0
$264,000
2.12%
($13,000)
$1,186,000
273,000
0
310,000
$1,149,000
8.29%
1,137,000
0
(184,000)
(729,000)
180,000
$404,000
2.91%
($368,000)
(889,000)
($1,257,000)
-9.07%
$296,000
2.14%
1,185,000
103.13%
2.14%
0
120,000
$120,000
0.87%
0
277,000
(310,000)
0
($33,000)
-0.24%
$87,000
$1,184,000
335,000
0
440,000
$1,079,000
7.39%
(622,000)
0
52,000
171,000
240,000
($159,000)
-1.09%
($420,000)
(860,000)
($1,280,000)
-8.77%
($360,000)
-2.47%
500,000
46.34%
-2.47%
0
572,000
$572,000
3.92%
0
1,546,000
(440,000)
0
$1,106,000
7.58%
$1,678,000
$1,302,000
542,000
0
375,000
$1,469,000
9.05%
(341,000)
0
(93,000)
(150,000)
(25,000)
($609,000)
-3.75%
($592,000)
(1,848,000)
($2,440,000)
-15.02%
($1,580,000)
-9.73%
268,000
18.24%
-9.73%
0
196,000
$196,000
1.21%
0
365,000
(375,000)
0
($10,000)
-0.06%
$186,000
$1,176,250
334,000
0
361,250
$1,149,000
8.54%
(403,750)
0
(76,750)
(7,500)
278,750
($209,250)
-1.55%
($409,250)
(1,002,750)
($1,412,000)
-10.49%
($472,250)
-3.51%
530,500
46.17%
-3.51%
0
152,750
$152,750
1.14%
0
693,000
(361,250)
0
$331,750
2.47%
$484,500
899,000
(473,000)
(671,000)
(13,000)
($258,000)
-28.70%
($258,000)
0
1,149,000
404,000
(1,257,000)
87,000
$383,000
33.33%
$383,000
0
1,079,000
(159,000)
(1,280,000)
1,678,000
$1,318,000
122.15%
$1,318,000
0
1,469,000
(609,000)
(2,440,000)
186,000
($1,394,000)
-94.89%
($1,394,000)
0
1,149,000
(209,250)
(1,412,000)
484,500
$12,250
0.09%
$12,250
0.00%
2007
2008
2009
2010
WORKING CAPITAL CF
INVESTING CF
$1,500,000
$1,000,000
$500,000
$0
($500,000)
($1,000,000)
2007
2008
2009
2010
DEBT FINANCE
NET EQUITY
$1,500,000
$1,000,000
$500,000
$0
($500,000)
($1,000,000)
($1,500,000)
($2,000,000)
2007
2008
2009
2010
Financial data provided through ENGINEERING FIRM. The financial statements are NOT audited or assured by BUSINESS FERRET LLC.
1
2
3
4
5
6
7
8
9
1
286
287
288
289
290
291
292
293
294
2006
2007
2008
2009
2010
WEIGHTED
AVERAGE
AVERAGE
VALUE
$899,000
(473,000)
17,550
(257,000)
$0
$186,550
$1,149,000
404,000
21,450
(368,000)
$0
$1,206,450
$1,079,000
(159,000)
39,650
(420,000)
$0
$539,650
$1,469,000
(609,000)
46,150
(592,000)
$0
$314,150
14.46
12.23
17.63
15.16
15.14
296
8.48
7.36
8.74
7.70
8.15
297
298
299
300
56.63
9.10
25.59
46.95
21.40
1.50%
1.50%
8.00%
6.50%
CAP RATE
P/E RATIO
1.50%
REMARKS:
GROWTH
RATE in
DOLLARS
10
11
12
STANDARD
DEVIATION
PROBABILITY
LINKAGE TO
REVENUES
GMV to EBITDA
120.00
100.00
16.14
41.05
80.00
$20,943,333
$5,981,000
$36,500,000
$5,981,000
60.00
$14,962,333
$30,519,000
170.63%
477.40%
$15,013,333
$31,050,600
27.07
14.56
38.25
16.81
14.04
13.26
112.27
17.36
38.81
21.52
10.94
66.67
2006
2007
2008
2009
2010
AVERAGE
$10,129,000
52.46%
34.31%
$12,455,000
55.62%
39.12%
$2,326,000
5.72%
55.12%
$310,196
$13,861,000
45.86%
31.20%
$1,406,000
6.32%
64.61%
$148,806
$14,600,000
56.47%
32.43%
$739,000
5.10%
40.86%
$162,276
$16,240,000
$13,457,000
51.05%
33.03%
$1,527,750
5.47%
55.03%
$210,180
4.51%
28.67
23.34
26.73
44.86%
28.08%
$1,640,000
5.71%
59.55%
$219,441
40.00
20.00
0.00
2007
2008
2009
2010
$146,601
$2,434
$25,156
$77,254
($146,601)
($2,434)
($25,156)
($77,254)
% of
AVERAGE
REVENUES
$1,231,000
(257,800)
36,400
(462,100)
$0
$547,500
295
301
302
303
304
305
306
307
308
309
310
311
312
313
314
315
316
317
318
319
% of
CURRENT
REVENUES
2,500,000
2006
2007
2008
2009
2010
$10,129,000
42.08%
15.25%
19.05%
$12,455,000
48.58%
17.85%
21.28%
$2,326,000
5.72%
55.12%
$146,601
$13,861,000
35.45%
10.78%
20.42%
$1,406,000
6.32%
64.61%
$2,434
$14,600,000
37.92%
11.40%
21.03%
$739,000
5.10%
40.86%
$25,156
$16,240,000
4.51%
36.19%
9.33%
18.75%
$1,640,000
5.71%
59.55%
$77,254
AVERAGE
2,000,000
1,500,000
$13,457,000
40.04%
1,000,000
12.92%
20.11%
500,000
$1,527,750
5.47%
0
55.03%
$62,861
(500,000)
2007
2008
2009
2010
10
Financial data provided through ENGINEERING FIRM. The financial statements are NOT audited or assured by BUSINESS FERRET LLC.
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
2006
2007
2008
2009
$2,500,000
$767,000
$509,000
$892,000
$2,210,000
$816,000
$1,038,800
2,395,000
465,000
302,000
0
$302,000
3,435,000
785,000
(276,000)
0
($276,000)
2,854,000
24,000
868,000
0
$868,000
3,567,000
497,000
1,713,000
0
$1,713,000
3,810,000
765,000
51,000
0
$51,000
3,212,200
507,200
531,600
0
$531,600
(302,000)
276,000
(868,000)
(1,713,000)
(51,000)
$465,000
$785,000
$24,000
$497,000
$765,000
(465,000)
(785,000)
(24,000)
(497,000)
(765,000)
$2,949,490
810,000
2,139,490
$4,135,770
533,000
3,602,770
$3,428,070
653,000
2,775,070
$3,860,420
1,225,000
2,635,420
$4,098,570
1,421,000
2,677,570
$3,694,464
928,400
2,766,064
0.43
0.44
0.78
0.74
0.60
2007
2008
2009
2010
AVERAGE
21.72%
1.42
49.27%
1.61
9.68%
0.65
97.60%
1.02
19.44%
1.28
43.21%
1.41
10.03%
0.67
95.43%
1.00
4.36
18.52%
1.21
46.73%
1.52
11.10%
0.75
120.59%
1.27
4.75
25.41%
1.67
39.35%
1.28
9.01%
0.61
131.74%
1.38
4.94
12
AVERAGE
AVERAGE
2006
11
2010
CASH BALANCE
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
18.47%
1.21
40.59%
1.32
9.31%
0.63
146.61%
1.54
4.70
$507,200
$2,000,000
$1,500,000
$1,000,000
$500,000
$0
($500,000)
($1,000,000)
($1,500,000)
($2,000,000)
2006
2007
2008
2009
2010
20.71%
1.36
43.83%
1.43
9.83%
0.66
118.40%
1.24
4.69
11
Financial data provided through ENGINEERING FIRM. The financial statements are NOT audited or assured by BUSINESS FERRET LLC.
1
2
3
4
5
6
7
8
9
1
363
364
365
366
367
368
369
370
371
372
373
374
375
376
2006
2007
2008
2009
2010
AVERAGE
151
175
($810,284)
128
$1,820,076
137
($360,010)
130
$280,852
144
$232,658
0
#DIV/0!
0
$0
0
$0
0
$0
0
$0
0
$0
55
64
$323,210
39
($979,946)
41
$91,347
34
($337,027)
47
($225,604)
97
111
89
95
97
% of
CURRENT
REVENUES
% of
AVERAGE
REVENUES
GROWTH
RATE in
DOLLARS
10
11
12
STANDARD
DEVIATION
PROBABILITY
LINKAGE TO
REVENUES
98
$3,551,696
$32,100
($487,074)
($34,597)
2006
2006
$3,136,501
$35,311
$840,129
$38,503
$3,584,917
$37,558
($268,663)
($40,556)
$3,967,432
($56,175)
($45,111)
$3,560,137
$34,990
$7,054
2007
2008
2009
2010
AVERAGE
0.00%
13.82%
9.36%
90.64%
0.00%
14.60%
9.81%
90.19%
0.00%
9.48%
13.50%
86.50%
0.00%
10.57%
13.95%
86.05%
0.00%
12.12%
11.65%
88.35%
12.53%
24.02%
13.16%
23.90%
8.20%
22.92%
9.10%
22.80%
10.75%
23.41%
2.00%
1.99%
1.91%
1.90%
1.95%
0.47
0.97
4.44
1.03
1.73
2007
2008
2009
2010
AVERAGE
117.89%
5.53%
204.79%
5.72%
6.52%
13.36%
13.82%
126.25%
5.72%
182.92%
6.32%
7.22%
13.20%
14.60%
105.71%
5.54%
175.90%
5.10%
5.86%
10.31%
9.48%
110.10%
5.50%
168.21%
5.71%
6.05%
10.18%
10.57%
114.99%
5.57%
182.96%
5.71%
6.41%
11.76%
12.12%
-6.00%
-5.95%
-2.34%
-3.05%
-4.33%
($634,409)
($1,287,229)
($1,610,085)
($2,059,465)
($1,397,797)
12