Annual Report Analysis Version 1.0.

51
From Statement of Income: ($M) Required Inputs
Company itv itv itv itv
Fiscal Year (mm/dd/yy) 2005 2006 2007 2008
Sales - Current Year CY (M) 329 264 192 -2647
Sales - Prior Year PY (M) 177 329 264 192
Cost of Goods Sold - Current Year 0 0 0 0
Cost of Goods Sold - Prior Year 0 0 0 0
interest expenses 54 35 54 110
Pre Tax Income (PTI) 311 288 188 -2732
Income Taxes -85 -66 -50 178
Net Profit / Net Income / Net Earnings 222 219 137 -2556
Diluted avg wtd no shares CY (M) 4082 4017 3874 3877
Diluted avg wtd no shares PY (M) 3947 4082 4017 3874
From Balance Sheet: ($M)
C&E+ShTm Inv+Marketable Sec(CY) 750 1027 577 682
C&E+ShTm Inv+Marketable Sec(PY) 532 750 1027 577
Accounts Receivable - CY 454 407 412 369
Accounts Receivable - PY 357 454 407 412
Inventories - Current Year 388 400 440 516
Inventories - Prior Year 368 388 400 440
Current assets 1483 1905 1408 1608
Property, Plant & Equipment 235 193 211 208
Total assets (CY) 6026 6107 5720 3251
Total assets (PY) 5663 6026 6107 5720
Short Term Debt (See definition) -43 -33 -471 -43
Accounts Payable -774 -686 -715 -738
Current liabilities -1139 -953 -1354 -1139
Long Term Debt -1101 -1224 -1263 -1264
Retained Earnings 115 92 15 -2652
Shareholder Equity - Current Year 3305 3163 3239 534
Shareholder Equity - Prior Year 3109 3305 3163 3239
From Statement of Cash Flows ($M)
Net Cash from Operating Activities(cy) 259 41 210 91
Net Cash from Investing Activities 250 112 5 32
Capital Expenditures (CAPEX) 98 128 122 127
Net cash from Financing Activities 133 147 679 59
Dividends Paid 46 79 37 32
From Value Line ($M)
Total Debt (Optional)
From Proxy, or SEC Schedule 14A ($M)
CEO Total Compensation 2.863 0.706 3.165 2.239
From Financial Notes In Annual Report
Net Income if Stk Options Expensed($M) 273 229 196 -2623
profit
Measure - Unhide Col. B for detail How to Input Data & Interpret
Profitability Measures
Pretax Profit Margin % Pretax profit margin=(Pretax profit / sales )
Net Profit Margin (Profitability) % Net profit margin = (Net Profit / Sales )
Asset Turnover(Efficiency) Sales / Avg Annual Assets
Financial Leverage(Gearing) Avg Annual Assets / Avg Shareholder Equity
Return on Equity % Return on Equity= (Net Profit / Average Equity)
Retained to Common Eqty % ROE x (earnings - dividends)/ earnings
Growth of Debt % Growth of annual debt
Return on Invested Capital ROIC = (Net Profit) / (Avg. Equity + LTD)
Return on Total Assets Return on total assets = (Net Profit / total assets)
Cash from Operations/Net Income % (Net Cash from Operating Activities(NCO)/Net Income)-1
EPS Net Income / Weighted Average Shares
Cash From Operations/Per Share Net Cash from Operations / Avg Weighted Shares
Growth in Cash from Operations/Share(CFO/share CY - CFO/share PY) /CFO/Share PY
Quality of Earnings (NI-NCO)/(Total Assets CY+Total Assets PY)/2
Impact on NI of Expensing Stk Options(NI if Stk Opt Expensed-NI)/NI
Retained Earnings/Shareholder Equity Retained Earnings/Shareholder Equity
Free Cash Flow ($M) Net Cash from Operations - CAPEX
Free Cash Flow Margin % (NCO-CAPEX-Dvds)/Sales
Operating Cash Flow Margin %OCF Margin=Net Cash from Operations/Revenue
Operating Cash Flow Coverage NCO / (Absolute Value (NCI+NCF)
Pretax Profit
Capital Structure
Total Debt to Equity Ratio Total debt to equity ratio = total debt / equity
Total Debt/ NCO Total Debt /Net Cash from Operating Activities(NCO)
LTD / 2x Last Years Earnings Long Term Debt / 2 times last years Net Income
Share Buyback/(Dilution) (# shares last year - # shares this year) / # shares last year
Stk Option Shares/Total Shares % Stk Opt Sh Granted/Total Shares
Net C&E+STI+MS-Total Debt Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Deb
Net C&E+STI+MS-Total Debt per Sh Cash & Equiv.+Sh Tm Inv.+Marketable Securities-Total Deb
C&E+STI+MS vs Debt Ratio (Cash & Equiv+ Sh Tm Inv+MS) / Total Debt
C&E+STI+MS Ratio CY/PY % Cash & Equiv +Sh Tm Inv+Marketable Securities CY/Same
Interest Coverage Ratio (Pretax Profit + Interest Expense) / Interest Expense
Current Ratio Current ratio= Current Assets / Current Liabilities
Quick Assets Ratio Quick Assets Ratio= (C&E+STI+MS+AR) / Current Liabiliti
Foolish Flow Ratio Foolish Flow Ratio = (CA-C&E)/CL-STD)
Turnover Ratios
% Change in Accounts Receivable(AR)AR CY / AR PY
Change in Sales % Sales CY / Sales PY
% Change in AR vs Sales Chg AR% - Chg Sales%
Days Sales Outstanding CY AR CY / (Sales CY / 365)
Days Sales Outstanding PY
Inventory Turnover Rate (CY)
Inventory Turnover Rate (PY)
% Change in Inventory
% Change in Inventory vs Sales
Plant Turnover Ratio
CEO Pay as % of Net Income
Cash Conversion Cycle(CCC)
Total Debt
Average Equity
Average Assets
Net Profit / Net Income / Net Earnings
EPS Growth Rate
AR PY / (Sales PY / 365)
COG CY / Inv CY
COG PY / Inv PY
INV CY / INV PY
Chg Inv% - Chg Sales%
Sales CY / PP&E
CEO Total Compensation /Net Income
CCC=DIO+DSO-DPO (From Fool)
 Good User
Criteria
>15% 94.52% 1O9% 97.91% NA
>10% 67.47% 82.95% 97.91% NA
Chk Chgs 0.056 0.0485 0.0325 -0.59
Chk Chgs 1.822 1.876 1.847 2.378
>15% 6.90% 6.80% 4.30% -1.35%
>= Grth Rt 54.70% 4.35% 3.31% -1.37%
< ROE 0 0.80% -1.02% -41.06%
>15% 10.54% 10.90% 7.07% -410.60%
Cmp Ind 0.0368404 0.03586 0.023951 -0.78622
> 0% 16% -81.28% 53.28% -3.56%
> Prior Yr 0.0543 0.0545 0.0353 -6.59
>EPS 0.0634493 0.010207 0.054208 0.023472
>EPS Gr 0 -0.83914 4.311017 -0.567002
< 3% -0.06% 2.93% -1.23% -59.01%
>-5% 22% 4.56% 43.06% NA
SGR 0.0347958 0.029086 0.004631 -4.966
> Prior Yr 161 -87 88 -36
>10% 34.95% -62.88% 26.56 2.57%
> 15% 0.787234 0.155303 1.09375 -3.43%
> 0.9 0.6762402 0.158301 0.307018 1
311 288 188 -2732

<. 33 No Debt No Debt No Debt No Debt

<3.3 No Debt No Debt No Debt No Debt
<1 NA NA NA NA
> 0.0% -0.034203 0.015924 0.035599 -0.000774
<5% 0.066879 0.057008 0.050594 -0.676554
>0 750 1027 577 682
>0 0.1837335 0.255663 0.148942 0.148942
> 1.5 No Debt No Debt No Debt No Debt
> 0% 0.4097744 0.369333 -0.438169 0.181976
>5 6.7592593 9.228571 4.481481 -23.83636
> 2.0 -1.302019 -1.998951 -1.039882 -1.411765
> 1.0 -1.057068 -1.504722 -0.730428 -0.922739
<1.25 -0.668796 -0.954348 -0.94111 -0.844891

< 0% 0.2717087 -0.103524 0.012285 -0.104369

>12% 0.8587571 -0.197568 -0.272727 -14.78646
< 0% -0.587048 0.094044 0.285012 14.68209
< PY 503.67781 562.7083 783.2292 NA
 736.18644 503.6778 562.7083 783.22
> PY ### 0 0 0 0
0 0 0 0
0.0543478 0.030928 0.1 0.172727
< 0% -0.804409 0.228496 0.372727 14.95919
Incr YTY 1.4 1.367876 0.909953 -12.72596
0.0128964 0.003224 0.023102 >100%
Ind Cmp -3.844929 -2.998506 -44.37661 NA

### 3207 3234 3201 1886.5

### 5844.5 6066.5 5913.5 4485.5
### 222 219 137 -2556
N/A 2.9p 3.5p 65.9p