EXHIBIT 16(C)(2) Introductory Note: The analyses contained in this exhibit being filed in accordance with the requirements of the Securities Exchange Act of 1934. However, in considering such analyses, the reader should be aware that such analyses were, at the time they were delivered, preliminary an incomplete and cannot be relied upon. See the Proxy Statement filed as Exhibit A to the Schedule 13E-3 with which this exhibit is being filed. Portions of this exhibit marked by "*" have been omitted pursuant to a request for confidential treatment, and the material has been filed separately with the Securities and Exchange Commission. Comparable Company Analysis - Implied Value - BCT International ($ in thousands, except per share) Earnings Revenue --------------------------------- ------------------------------------ LTM Est CFY (1) Est NFY (1) Common Equity LTM Est CFY (1) Est NFY (1) ------- ----------- ----------- ------------- --------- ----------- ----------- BCT International $ 98 $ 519 $ 371 $ 14,540 $ 18,377 $ 17,726 $ 16,610 - ------------------------------------------------------------------------------------------------------------------------------------ Comparable Companies Multiples High 12.4x 11.6x 10.5x 0.8x 0.7x 0.7x 0.7x Mean 10.4 11.6 10.5 0.6 0.4 0.6 0.5 Median 10.4 11.6 10.5 0.6 0.4 0.6 0.5 Low 10.4 11.6 10.5 0.3 0.0 0.5 0.4 Implied Range of Enterprise Value High na na na na $ 13,277 $ 12,915 $ 11,749 Mean na na na na 6,994 11,149 8,946 Median na na na na 6,986 11,149 8,946 Low na na na na 843 9,382 6,142 Implied Range of Market Value (2) High $ 1,210 $ 6,005 $ 3,898 $ 11,884 $ 18,987 $ 18,625 $ 17,459 Mean 1,022 6,005 3,898 8,673 12,704 16,859 14,656 Median 1,022 6,005 3,898 8,716 12,696 16,859 14,656 Low 1,022 6,005 3,898 4,261 6,553 15,092 11,852 Implied Range of Market Value Per Share (3) High $ 0.21 $ 1.03 $ 0.67 $ 2.03 $ 3.25 $ 3.19 $ 2.99 Mean 0.17 1.03 0.67 1.48 2.17 2.89 2.51 Median 0.17 1.03 0.67 1.49 2.17 2.89 2.51 Low 0.17 1.03 0.67 0.73 1.12 2.58 2.03 - ------------------------------------------------------------------------------------------------------------------------------------ LTM May 01 ------------------- EBIT EBITDA Total Assets -------- -------- ------------ BCT International $ 388 $ 630 $ 16,156 - -------------------------------------------------------------------------------- Comparable Companies Multiples High 10.9x 8.7x 0.7x Mean 7.0 4.9 0.4 Median 9.2 5.2 0.5 Low 0.9 0.7 0.1 Implied Range of Enterprise Value High $ 4,220 $ 5,458 $ 11,805 Mean 2,712 3,067 6,925 Median 3,563 3,303 8,191 Low 351 439 1,531 Implied Range of Market Value (2) High $ 9,930 $ 11,168 $ 17,515 Mean 8,422 8,777 12,635 Median 9,273 9,013 13,901 Low 6,061 6,149 7,241 Implied Range of Market Value Per Share (3) High $ 1.70 $ 1.91 $ 3.00 Mean 1.44 1.50 2.16 Median 1.59 1.54 2.38 Low 1.04 1.05 1.24 - -------------------------------------------------------------------------------- - --------------------------------- (1) Estimates have been derived from Company Projections and Management. (2) Assumes Net Debt of ($5,710) [See Company DCF Analysis for calculation]. (3) Assumes 5,843 shares outstanding. Sources of information: SEC Edgar filings, Multex, Inc., Bloomberg, LP, Commodity Systems, Inc., and/or Hoovers, Inc. Comparable Company Analysis - Valuation Multiples - BCT International ($ in thousands, except per share data) Market Value as a Multiple of ------------------------------------------------------ % Below/Above EPS Stock Price 52-week Market Enterprise --------------------------------- Common Net Tang. Company 9-Oct-01 High-Low Value Value (1) LTM Est CFY(2) Est NFY(2) Equity Common Eq - ---------------------- ------------ --------------- ---------- ------------- ------- ------------ ------------ -------- ----------- Consolidated Graphics, Inc $ 18.280 17.3% - 92.4% $ 239,468 $ 487,207 12.4x 11.6x 10.5x 0.8x 2.6x Geographics, Inc. 0.070 84.1% - 27.3% 2,674 13,056 na na na 0.5 1.2 IPI Inc 3.940 28.4% - 91.0% 19,148 (11,343) na na na 0.6 0.7 Impreso, Inc 2.010 50.9% - 1240.0% 10,613 34,328 11.2 na na 0.7 0.7 iPrint Technologies 0.190 93.8% - 18.8% 5,738 5,754 na na na 0.3 0.3 Paris Corporation 2.800 24.3% - 60.0% 9,156 1,983 7.8 na na 0.6 0.6 -------------------------------------------------------------------------------- High 12.4x 11.6x 10.5x 0.8x 2.6x Mean 10.4 11.6 10.5 0.6 1.0 Median 10.4 11.6 10.5 0.6 0.7 Low 10.4 11.6 10.5 0.3 0.3 -------------------------------------------------------------------------------- BCT International $ 0.780 59.8% - 36.8% $ 4,546 $ 1,656 na na na 0.3x 0.3x Enterprise Value as a Multiple of ------------------------------------------------------ Revenue 5 Year -------------------------------- LTM LTM EPS Growth Company LTM Est CFY(2) Est NFY(2) EBIT EBITDA Assets Proj. (2) - ---------------------- -------- ----------------------- ------ -------- -------- ------------ Consolidated Graphics, Inc 0.7x 0.7x 0.7x 9.2x 5.2x 0.7x 15.0% Geographics, Inc. 0.4 na na na na 0.5 na IPI Inc na na na na na na na Impreso, Inc 0.4 na na 10.9 8.7 0.6 na iPrint Technologies 0.4 0.5 0.4 na na 0.2 na Paris Corporation 0.0 na na 0.9 0.7 0.1 na ---------------------------------------------------------------------- 0.7x 0.7x 0.7x 10.9x 8.7x 0.7x 15.0% 0.4 0.6 0.5 7.0 4.9 0.4 15.0% 0.4 0.6 0.5 9.2 5.2 0.5 15.0% 0.0 0.5 0.4 0.9 0.7 0.1 15.0% ---------------------------------------------------------------------- BCT International 0.1x na na na na 0.1x na ________________________________________________________________________________ (1) Enterprise Value equals Market Value plus total debt, preferred stock, and minority interests, less cash. (2) Sources of estimates: I/B/E/S and other various securities analysts' estimates and reports. Sources of information: SEC Edgar filings, Multex, Inc., Bloomberg, LP, Commodity Systems, Inc., and/or Hoovers, Inc. Comparable Company Analysis - Margin and Other Analyses - BCT International ($ in thousands) LTM (1) ------------------------------------------------------------------------------------- as Percentage of Revenue Return on ---------------------------------------------------- -------------------- Gross Operating Net Average Average Company Ticker Revenue Margin S G & A Margin EBITDA EBIT Income Assets Common Eq - ---------------------- ------ ------- ------ ------- --------- ------ ---- ------ --------- --------- Consolidated Graphics, Inc CGX $674,345 27.2% 18.4% 7.8% 13.8% 7.9% 2.8% 2.9% 6.6% Geographics, Inc. GGIT 35,922 12.3% 25.8% -13.4% -7.7% -13.5% -16.7% -22.6% -110.9% IPI Inc IDH 8,518 79.2% 75.7% -9.6% -3.7% -9.6% -7.0% -1.8% -2.4% Impreso, Inc ZCOM 87,820 11.8% 8.4% 3.4% 4.5% 3.6% 1.1% 1.9% 6.7% iPrint Technologies IPRT 15,137 33.4% 157.4% -169.1% -128.5% -155.1% -155.1% -79.2% -97.0% Paris Corporation PBFI 43,232 12.7% 9.8% 2.9% 6.6% 5.1% 2.7% 5.8% 7.8% ----------------------------------------------------------------------------------------------- High $674,345 79.2% 157.4% 7.8% 13.8% 7.9% 2.8% 5.8% 7.8% Mean 144,162 29.4% 49.3% -29.7% -19.2% -26.9% -28.7% -15.5% -31.5% Median 39,577 20.0% 22.1% -3.4% 0.4% -3.0% -3.0% 0.0% 2.1% Low 8,518 11.8% 8.4% -169.1% -128.5% -155.1% -155.1% -79.2% -110.9% ----------------------------------------------------------------------------------------------- BCT International BCTI $ 18,377 38.8% 38.9% -1.4% -0.1% -1.4% 0.5% 0.6% 0.7% as of Latest Available Filing ----------------------------------- ---------------------------------------------- Accts Days Total Debt Total Debt Latest FY Receivable Inventory Sales Current to Total to Revenue Company Turnover Turnover Outstanding Ratio Capitalization EBITDA Growth - ---------------------- ---------- -------- ----------- ------- -------------- ---------- --------- Consolidated Graphics, Inc 5.8x 15.43x 63.3 2.1 46.4% 2.7x 9.4% Geographics, Inc. 5.6 4.53x 65.0 0.7 67.4% na 34.3% IPI Inc 6.3 8.10x 58.0 4.3 0.2% na -9.6% Impreso, Inc 8.9 2.68x 41.0 1.3 62.7% 6.0x 20.5% iPrint Technologies 9.8 na 37.4 3.5 0.1% na 424.2% Paris Corporation 8.0 9.80x 45.7 3.5 8.2% 0.5x 21.4% --------------------------------------------------------------------------------- 9.8x 15.4x 65.0 4.3 67.4% 6.0x 424.2% 7.4 8.1 51.7 2.6 30.8% 3.1 83.4% 7.1 8.1 51.9 2.8 27.3% 2.7 20.9% 5.6 2.7 37.4 0.7 0.1% 0.5 -9.6% --------------------------------------------------------------------------------- BCT International 6.6x 4.76x 55.7 7.4 1.9% na -1.4% ________________________________________________________________________________ (1) May exclude special items, such as extraordinary and non-recurring expenses. See individual company overviews for details of exclusions, if any. Sources of information: SEC Edgar filings, Multex, Inc., Bloomberg, LP, Commodity Systems, Inc., and/or Hoovers, Inc. Comparable Company Analysis - Income Statement Overview - BCT International ($ in thousands, except per share data) Revenue EBITDA (1) EBIT (1) Net Income (1) -------------------- -------------------- -------------------- -------------------- Latest Latest Latest Latest Company LTM 10-K LTM 10-K LTM 10-K LTM 10-K - ---------------------------- --------- --------- --------- --------- --------- --------- --------- --------- Consolidated Graphics, Inc $ 674,345 $ 683,396 $ 92,918 $ 97,063 $ 53,052 $ 58,280 $ 19,155 $ 22,111 Geographics, Inc. 35,922 36,602 (2,783) (2,064) (4,862) (3,863) (6,002) (5,007) IPI Inc 8,518 9,294 (317) 330 (818) (204) (595) (192) Impreso, Inc 87,820 74,118 3,962 3,481 3,156 2,792 934 931 iPrint Technologies 15,137 17,069 (19,448) (32,017) (23,476) (35,975) (23,476) (35,975) Paris Corporation 43,232 43,011 2,847 1,991 2,191 1,263 1,166 663 -------------------------------------------------------------------------------------------------- High $ 674,345 $ 683,396 $ 92,918 $ 97,063 $ 53,052 $ 58,280 $ 19,155 $ 22,111 Mean 144,162 143,915 12,863 11,464 4,874 3,716 (1,470) (2,912) Median 39,577 39,807 1,265 1,161 687 530 170 235 Low 8,518 9,294 (19,448) (32,017) (23,476) (35,975) (23,476) (35,975) -------------------------------------------------------------------------------------------------- BCT International $ 18,377 $ 19,048 $ (20) $ 988 $ (265) $ 756 $ 98 $ 664 EPS (1) Latest Latest -------------------- Latest Available Available Company LTM 10-K 10-Q 10-K - ---------------------------- --------- --------- --------- --------- Consolidated Graphics, Inc $ 1.48 $ 1.68 30-Jun-01 31-Mar-01 Geographics, Inc. (0.17) (0.14) 30-Jun-01 31-Mar-01 IPI Inc (0.13) (0.04) 31-May-01 30-Nov-00 Impreso, Inc 0.18 0.18 31-May-01 31-Aug-00 iPrint Technologies (0.71) (1.39) 30-Jun-01 31-Dec-00 Paris Corporation 0.36 0.21 30-Jun-01 30-Sep-00 -------------------------------- High $ 1.48 $ 1.68 Mean 0.17 0.08 Median 0.03 0.07 Low (0.71) (1.39) -------------------------------- BCT International na $ 0.13 31-Aug-01 28-Feb-01 ________________________________________________________________________________ (1) May exclude special items, such as extraordinary and non-recurring expenses. See individual company overviews for details of exclusions, if any. Sources of information: SEC Edgar filings, Multex, Inc., Bloomberg, LP, Commodity Systems, Inc., and/or Hoovers, Inc. Comparable Company Analysis - Balance Sheet Overview - BCT International ($ in thousands) As of Latest Available Filing --------------------------------------------------------------------------------------------- Cash, Equivalents Accounts Total Current Intangibles, Total Company & Mrkt Sec Receivables Inventory Assets PPE, net net Assets - ----------------------------- ----------------- ----------- --------- ------------- ---------- ------------ --------- Consolidated Graphics, Inc $ 6,116 $ 117,710 $ 32,049 $ 165,489 $ 292,760 $ 201,714 $ 666,800 Geographics, Inc. 177 5,453 7,268 13,463 9,141 2,907 25,753 IPI Inc 30,559 1,338 196 35,390 727 3,274 40,083 Impreso, Inc 198 10,800 36,667 48,138 10,562 - 58,940 iPrint Technologies 10,645 1,227 - 19,827 3,202 - 25,192 Paris Corporation 8,537 5,401 3,842 18,750 1,598 - 20,921 --------------------------------------------------------------------------------------------------------- High $ 30,559 $ 117,710 $ 36,667 $ 165,489 $ 292,760 $ 201,714 $ 666,800 Mean 9,372 23,655 13,337 50,176 52,998 34,649 139,615 Median 7,327 5,427 5,555 27,609 6,172 1,454 32,918 Low 177 1,227 - 13,463 727 - 20,921 --------------------------------------------------------------------------------------------------------- BCT International $ 3,170 $ 2,043 $ 2,375 $ 8,170 $ 423 $ 219 $ 16,156 Latest -------------------------------------------------- Total Current Total Total Net Tangible Available Company Liabilities Debt Common Eq Common Eq Filing - ----------------------------- ------------- --------- --------- ------------ --------- Consolidated Graphics, Inc $ 80,298 $ 247,739 $ 292,983 $ 91,269 30-Jun-01 Geographics, Inc. 18,013 10,382 5,113 2,206 30-Jun-01 IPI Inc 8,203 (30,491) 31,812 28,538 31-May-01 Impreso, Inc 37,382 23,715 14,212 14,212 31-May-01 iPrint Technologies 5,600 16 19,582 19,582 30-Jun-01 Paris Corporation 5,358 (7,173) 15,338 15,338 30-Jun-01 --------------------------------------------------------------- High $ 80,298 $ 247,739 $ 292,983 $ 91,269 Mean 25,809 40,698 63,173 28,524 Median 13,108 5,199 17,460 17,460 Low 5,358 (30,491) 5,113 2,206 --------------------------------------------------------------- BCT International $ 1,102 $ (2,890) $ 14,540 $ 14,321 31-Aug-01 ________________________________________________________________________________ Sources of information: SEC Edgar filings, Multex, Inc., Bloomberg, LP, Commodity Systems, Inc., and/or Hoovers, Inc. - ------------------------------------------------------------------------------------------------------------------------------------ Consolidated Graphics, Inc Overview - ------------------------------------------------------------------------------------------------------------------------------------ Name Consolidated Graphic Address 5858 Westheimer Officers Joe Davis Attorneys Symbol CGX City, State Zip Houston, TX 77057 Charles White Auditors Arthur Andersen Latest Fiscal YE 31-Mar-01 Telephone 713-787-0977 Wayne Rose Transfer Agent American Stock Latest Rprt Per 30-Jun-01 Fax 713-787-5013 Transfer & Trust Consolidated Graphics has bought more than 60 medium-sized printing firms since 1985. CGX, which is one of the nation's largest commercial printers, generates most of its sales by printing items such as brochures, catalogs, and direct mail fliers. The company also provides electronic services (online digital asset management, online purchasing) and fulfillment services. - ------------------------------------------------------------------------------------------------------------------------------------ - ----------------------------------------------------------------------------------------------------------- Income and Cashflow Statement Data - ----------------------------------------------------------------------------------------------------------- ($ in thousands, except per share) LTM Three Months Ended Fiscal Years Ended ------------------------ ------------------------ Jun-01 Jun-01 Jun-00 Mar-01 Mar-00 --------- ------------------------ ------------------------ Revenue $ 674,345 $ 164,435 $ 173,486 $ 683,396 $ 624,895 COGS 490,703 120,603 124,058 494,158 437,345 --------- ------------------------ ------------------------ Gross Profit 183,642 43,832 49,428 189,238 187,550 Selling, General & Administrative 124,297 30,755 31,123 124,665 109,944 Research & Development - - - - - Other Operating 6,440 - - 6,440 - --------- ------------------------ ------------------------ Operating Income 52,905 13,077 18,305 58,133 77,606 Interest Expense, net 20,704 4,610 4,911 21,005 13,584 Other, net 147 - - 147 108 --------- ------------------------ ------------------------ Pre-tax Income 32,348 8,467 13,394 37,275 64,130 Taxes 13,193 3,387 5,358 15,164 25,651 --------- ------------------------ ------------------------ After-tax Income 19,155 5,080 8,036 22,111 38,479 Minority Interest - - - - - Equity in Affiliates - - - - - --------- ------------------------ ------------------------ Normalized Net Income 19,155 5,080 8,036 22,111 38,479 Preferred Dividends - - - - - --------- ------------------------ ------------------------ Normalized Net Income to Common $ 19,155 $ 5,080 $ 8,036 $ 22,111 $ 38,479 ========= ======================== ======================== EBIT $ 53,052 $ 13,077 $ 18,305 $ 58,280 $ 77,714 Depreciation & Amortization $ 39,866 $ 10,260 $ 9,177 $ 38,783 $ 32,881 EBITDA $ 92,918 $ 23,337 $ 27,482 $ 97,063 $ 110,595 CAPEX $ 24,415 $ 3,071 $ 5,090 $ 26,434 $ 25,172 EBITDA - CAPEX $ 68,503 $ 20,266 $ 22,392 $ 70,629 $ 85,423 GAAP Operating Cash Flow $ 60,210 $ 12,180 $ 20,088 $ 68,118 $ 68,319 - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- Special Item Reconciliation: Pre-tax Special Items Unusual Items $ - $ - $ - $ - $ - Accounting Changes $ - $ - $ - $ - $ - Discontinued Operations $ - $ - $ - $ - $ - Extraordinary Items $ - $ - $ - $ - $ - Total $ - $ - $ - $ - $ - Total After-tax Special Items $ - $ - $ - $ - $ - Tax Provision on Special Items $ - $ - $ - $ - $ - Reported Taxes $ 13,193 $ 3,387 $ 5,358 $ 15,164 $ 25,651 Reported Net Income $ 19,155 $ 5,080 $ 8,036 $ 22,111 $ 38,479 - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- Basic Reported Weighted Avg Shares Out (000's) 13,025 13,601 13,142 15,155 Basic Normalized EPS $ 1.48 $ 0.39 $ 0.59 $ 1.68 $ 2.54 Basic Reported EPS $ 1.48 $ 0.39 $ 0.59 $ 1.68 $ 2.54 Diluted Reported Weighted Avg Shares Out (000's) 13,258 13,610 13,186 15,336 Diluted Normalized EPS $ 1.47 $ 0.38 $ 0.59 $ 1.68 $ 2.51 Diluted Reported EPS $ 1.47 $ 0.38 $ 0.59 $ 1.68 $ 2.51 - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- Profitability Ratios (as % of Revenue) - ----------------------------------------------------------------------------------------------------------- Core Gross Profit 27.2% 26.7% 28.5% 27.7% 30.0% S,G & A 18.4% 18.7% 17.9% 18.2% 17.6% Operating Income 7.8% 8.0% 10.6% 8.5% 12.4% Pre-Tax 4.8% 5.1% 7.7% 5.5% 10.3% EBIT 7.9% 8.0% 10.6% 8.5% 12.4% EBITDA 13.8% 14.2% 15.8% 14.2% 17.7% Normalized Net Income 2.8% 3.1% 4.6% 3.2% 6.2% Reported Net Income 2.8% 3.1% 4.6% 3.2% 6.2% - ----------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Balance Sheet Data - -------------------------------------------------------------------------------- ($ in thousands, except per share) As of As of ------------------------ 30-Jun-01 Mar-01 Mar-00 --------- ------------------------ Cash & Equivalents $ 6,116 $ 8,667 $ 8,197 Marketable Securities - - - --------- ------------------------ Total Cash & Mkt Securities 6,116 8,667 8,197 Accounts Receivable 117,710 116,095 115,646 Inventory 32,049 31,536 32,670 Other Current Assets 9,614 8,628 8,518 --------- ------------------------ Total Current Assets 165,489 164,926 165,031 PPE, net 292,760 299,871 310,344 Intangibles, net 201,714 203,030 198,588 Investments - - - Other Assets 6,837 6,840 6,885 --------- ------------------------ Total Assets $ 666,800 $ 674,667 $ 680,848 ========= ======================== Accounts Payable $ 27,619 $ 33,865 $ 55,780 Accrued Expenses 33,417 32,609 35,260 Short Term Debt 16,189 18,711 5,083 Short Term Capital Leases - - - Other Current Liabilities 3,073 253 3,607 --------- ------------------------ Total Current Liabilities 80,298 85,438 99,730 Other LT Liabilities 55,853 54,966 47,180 Long Term Debt 237,666 246,729 261,407 Long Term Capital Leases - - - Minority Interests - - - Pref Stock (Liq Value) - - - --------- ------------------------ Total Liabilities & Pref Stock 373,817 387,133 408,317 --------- ------------------------ Common Equity 292,983 287,534 272,531 --------- ------------------------ Total Liabilities & Equity $ 666,800 $ 674,667 $ 680,848 ========= ======================== Common Shares Outstanding (000's) 13,046 13,019 13,708 Cash Value per share $ 0.47 $ 0.67 $ 0.60 Book Value per share $ 22.46 $ 22.09 $ 19.88 Tangible Book Value per share $ 7.00 $ 6.49 $ 5.39 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Effectiveness and Efficiency - -------------------------------------------------------------------------------- A/R Turnover 5.77x 5.90x 5.40x Inventory Turnover 15.43x 15.39x 13.39x Asset Turnover 1.01x 1.01x 0.92x Days Sales Outstanding 63.3 61.9 67.5 Days Inventory Outstanding 23.6 23.7 27.3 Days Payable Outstanding 18.1 26.2 37.2 Return on Avg Assets 2.9% 3.3% na Return on Avg Common Equity 6.6% 7.9% na - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Financial Strength - -------------------------------------------------------------------------------- Current Ratio 2.06 1.93 1.65 Quick Ratio 1.66 1.56 1.33 Total Debt $ 253,855 $ 265,440 $ 266,490 Net Debt $ 247,739 $ 256,773 $ 258,293 Total Capitalization $ 546,838 $ 552,974 $ 539,021 Total Debt/Total Capitalization 46.4% 48.0% 49.4% Net Debt/Total Capitalization 45.3% 46.4% 47.9% Total Debt/EBITDA 2.73x 2.73x 2.41x EBITDA/Interest Expense 4.49x 4.62x 8.14x EBITDA CAPEX/Interest Expense 3.31x 3.36x 6.29x - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Market Information - -------------------------------------------------------------------------------- As of Date 9-Oct-01 Exchange NYSE Stock Price $ 18.28 52 Week High $ 22.10 52 Week Low $ 9.50 Avg. Daily Volume (000's) 54 Beta 0.72 Shares Outstanding (000's) 13,100 Total Outstanding Warrants & Options (000's) - Float (000's) 8,800 Market Cap $ 239,468.0 Enterprise Value (EV) $ 487,207.0 Institutional % Owned 40.00% Number of Institutions 157 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Valuation Ratios - -------------------------------------------------------------------------------- Multiple of ----------------------- Market Cap EV ----------------------- Latest Twelve Months Revenue 0.36x 0.72x EBIT 4.51x 9.18x EBITDA 2.58x 5.24x Normalized Net Income 12.50x 25.43x Basic Normalized EPS 12.35x Projected Mar-02 Mean Revenue 0.36x 0.73x Mar-02 Mean Revenue 0.35x 0.71x Mar-02 Mean EPS 11.57x na Mar-03 Mean EPS 10.51x na Most Recent Filing Assets 0.36x 0.73x Common Equity 0.82x 1.66x Tangible Common Equity 2.62x 5.34x - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Mean Consensus Estimates - -------------------------------------------------------------------------------- Year Ending # Ests Revenue EPS - -------------------------------------------------------------------------------- March-02 2 $ 668,700 $ 1.58 March-03 2 $ 688,760 $ 1.74 LT Growth 1 na 15.00% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Period Growth Rates - -------------------------------------------------------------------------------- Three Months Ended Fiscal Years Ended Jun-01 Mar-01 ---------------- ---------------- Revenue -5.2% 9.4% EBIT -28.6% -25.0% EBITDA -15.1% -12.2% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Notes - -------------------------------------------------------------------------------- Sources: Multex, Yahoo Finance, and Hoovers - ------------------------------------------------------------------------------------------------------------------------------------ Geographics, Inc. Overview - ------------------------------------------------------------------------------------------------------------------------------------ Name Geographics, Inc. Address 1555 Odell Road Officers James Dorman Attorneys Symbol GGIT City, State Zip Blaine, WA 98231 William Graham Auditors KPMG Latest Fiscal YE 31-Mar-01 Telephone 360-332-6711 John Rossmiller Transfer Agent Montreal Trust Centre Latest Rprt Per 30-Jun-01 Fax 360-332-6352 William Paquin Geographics is primarily engaged in the development, manufacture, marketing and distribution of specialty paper products, generally made using pre-printed designs, including stationery, business cards, brochures, memo pads, and poster boards. Geographics is also engaged in the development, marketing and distribution of plastic ready-to-assemble filing and storage cabinets. - ------------------------------------------------------------------------------------------------------------------------------------ - ------------------------------------------------------------------------------------------------- Income and Cashflow Statement Data - ------------------------------------------------------------------------------------------------- ($ in thousands, except per share) LTM Three Months Ended Fiscal Years Ended ------------------- ------------------------ Jun-01 Jun-01 Jun-00 Mar-01 Mar-00 -------- ------------------- ------------------------ Revenue $ 35,922 $ 8,524 $ 9,204 $ 36,602 $ 27,255 COGS 31,486 7,039 6,499 30,946 18,999 -------- ------------------- ------------------------ Gross Profit 4,436 1,485 2,705 5,656 8,256 Selling, General & Administrative 9,267 1,915 2,135 9,487 7,576 Research & Development - - - - - Other Operating - - - - - -------- ------------------- ------------------------ Operating Income (4,831) (430) 570 (3,831) 680 Interest Expense, net 1,140 218 222 1,144 927 Other, net (31) (13) (14) (32) 483 -------- ------------------- ------------------------ Pre-tax Income (6,002) (661) 334 (5,007) 236 Taxes - - - - - -------- ------------------- ------------------------ After-tax Income (6,002) (661) 334 (5,007) 236 Minority Interest - - - - - Equity in Affiliates - - - - - -------- ------------------- ------------------------ Normalized Net Income (6,002) (661) 334 (5,007) 236 Preferred Dividends - - - - - -------- ------------------- ------------------------ Normalized Net Income to Common $ (6,002) $ (661) $ 334 $ (5,007) $ 236 ======== =================== ======================== EBIT $ (4,862) $ (443) $ 556 $ (3,863) $ 1,163 Depreciation & Amortization $ 2,079 $ 687 $ 407 $ 1,799 $ 1,330 EBITDA $ (2,783) $ 244 $ 963 $ (2,064) 2,493 CAPEX $ 1,534 $ 507 $ 77 $ 1,104 $ 444 EBITDA - CAPEX $ (4,317) $ (263) $ 886 $ (3,168) $ 2,049 GAAP Operating Cash Flow $ (242) $ 386 $ 274 $ (354) $ (2,621) - ------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------- Special Item Reconciliation: Pre-tax Special Items Unusual Items $ - $ - $ - $ - $ - Accounting Changes $ - $ - $ - $ - $ - Discontinued Operations $ - $ - $ - $ - $ - Extraordinary Items $ - $ - $ - $ - $ - Total $ - $ - $ - $ - $ - Total After-tax Special Items $ - $ - $ - $ - $ - Tax Provision on Special Items $ - $ - $ - $ - $ - Reported Taxes $ - $ - $ - $ - $ - Reported Net Income $ (6,002) $ (661) $ 334 $ (5,007) $ 236 - ------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------- Basic Reported Weighted Avg Shares Out (000's) 35,284 35,832 35,284 19,442 Basic Normalized EPS $ (0.17) $ (0.02) $ 0.01 $ (0.14) $ 0.01 Basic Reported EPS $ (0.17) $ (0.02) $ 0.01 $ (0.14) $ 0.01 Diluted Reported Weighted Avg Shares Out (000's) 35,284 36,711 35,284 20,599 Diluted Normalized EPS $ (0.17) $ (0.02) $ 0.01 $ (0.14) $ 0.01 Diluted Reported EPS $ (0.17) $ (0.02) $ 0.01 $ (0.14) $ 0.01 - ------------------------------------------------------------------------------------------------- - ------------------------------------------------------------------------------------------------- Profitability Ratios (as % of Revenue) - ------------------------------------------------------------------------------------------------- Core Gross Profit S,G & A 12.3% 17.4% 29.4% 15.5% 30.3% Operating Income 25.8% 22.5% 23.2% 25.9% 27.8% Pre-Tax -13.4% -5.0% 6.2% -10.5% 2.5% EBIT -16.7% -7.8% 3.6% -13.7% 0.9% EBITDA -13.5% -5.2% 6.0% -10.6% 4.3% Normalized Net Income -7.7% 2.9% 10.5% -5.6% 9.1% Reported Net Income -16.7% -7.8% 3.6% -13.7% 0.9% -16.7% -7.8% 3.6% -13.7% 0.9% - ------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Balance Sheet Data - -------------------------------------------------------------------------------- ($ in thousands, except per share) As of As of ------------------------ 30-Jun-01 Mar-01 Mar-00 ---------- ------------------------ Cash & Equivalents $ 177 $ 421 $ 361 Marketable Securities - - - ---------- ------------------------ Total Cash & Mkt Securities 177 421 361 Accounts Receivable 5,453 7,344 6,079 Inventory 7,268 6,634 5,301 Other Current Assets 565 604 562 ---------- ------------------------ Total Current Assets 13,463 15,003 12,303 PPE, net 9,141 9,007 9,305 Intangibles, net 2,907 3,127 317 Investments - - Other Assets 242 198 442 ---------- ------------------------ Total Assets $ 25,753 $ 27,335 $ 22,367 ========== ======================== Accounts Payable $ 5,919 $ 5,401 $ 3,699 Accrued Expenses 2,881 4,237 2,084 Short Term Debt 7,932 8,407 5,765 Short Term Capital Leases - - - Other Current Liabilities 1,281 1,950 1,628 ---------- ------------------------ Total Current Liabilities 18,013 19,995 13,176 Other LT Liabilities - - - Long Term Debt 2,627 1,629 3,539 Long Term Capital Leases - - - Minority Interests - - - Pref Stock (Liq Value) - - - ---------- ------------------------ Total Liabilities & Pref Stock 20,640 21,624 16,715 ---------- ------------------------ Common Equity 5,113 5,711 5,652 ---------- ------------------------ Total Liabilities & Equity $ 25,753 $ 27,335 $ 22,367 ========== ======================== Common Shares Outstanding (000's) 38,192 38,193 26,966 Cash Value per share $ 0.00 $ 0.01 $ 0.01 Book Value per share $ 0.13 $ 0.15 $ 0.21 Tangible Book Value per share $ 0.06 $ 0.07 0.20 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Effectiveness and Efficiency - -------------------------------------------------------------------------------- A/R Turnover 5.61x 5.45x 4.48x Inventory Turnover 4.53x 5.19x 3.58x Asset Turnover 1.35x 1.47x 1.22x Days Sales Outstanding 65.0 66.9 81.4 Days Inventory Outstanding 80.6 70.4 101.8 Days Payable Outstanding 50.7 41.1 50.8 Return on Avg Assets -22.6% -20.1% na Return on Avg Common Equity -110.9% -88.1% na - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Financial Strength - -------------------------------------------------------------------------------- Current Ratio 0.75 0.75 0.93 Quick Ratio 0.34 0.42 0.53 Total Debt $ 10,559 $ 10,036 $ 9,304 Net Debt $ 10,382 $ 9,615 $ 8,943 Total Capitalization $ 15,672 $ 15,747 $ 14,956 Total Debt/Total Capitalization 67.4% 63.7% 62.2% Net Debt/Total Capitalization 66.2% 61.1% 59.8% Total Debt/EBITDA na na 3.73x EBITDA/Interest Expense na na 2.69x EBITDA-CAPEX/Interest Expense na na 2.21x - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Market Information - -------------------------------------------------------------------------------- As of Date 9-Oct-01 Exchange OTC BB Stock Price $ 0.07 52 Week High $ 0.44 52 Week Low $ 0.06 Avg. Daily Volume (000's) 10 Beta (0.28) Shares Outstanding (000's) 38,200 Total Outstanding Warrants & Options (000's) - Float (000's) 26,000 Market Cap $ 2,674.0 Enterprise Value (EV) $ 13,056.0 Institutional % Owned 0.00% Number of Institutions - - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Valuation Ratios - -------------------------------------------------------------------------------- Multiple of ----------------------- Market Cap EV ----------------------- Latest Twelve Months Revenue 0.07x 0.36x EBIT na na EBITDA na na Normalized Net Income na na Basic Normalized EPS na Projected Dec-01 Mean Revenue na na Dec-01 Mean Revenue na na Dec-01 Mean EPS na na Dec-02 Mean EPS na na Most Recent Filing Assets 0.10x 0.51x Common Equity 0.52x 2.55x Tangible Common Equity 1.21x 5.92x - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Mean Consensus Estimates - -------------------------------------------------------------------------------- Year Ending # Ests Revenue EPS - -------------------------------------------------------------------------------- December-01 - $ - $ - December-02 - $ - $ - LT Growth - na na - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Period Growth Rates - -------------------------------------------------------------------------------- Three Months Ended Fiscal Years Ended Jun-01 Mar-01 -------- -------- Revenue -7.4% 34.3% EBIT -179.7% -432.2% EBITDA -74.7% -182.8% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Notes - -------------------------------------------------------------------------------- Sources: Multex, Yahoo Finance, and Hoovers - ------------------------------------------------------------------------------------------------------------------------------------ IPI Inc Overview - ------------------------------------------------------------------------------------------------------------------------------------ Name IPI Inc Address 8091 Wallace Roa Officers Robert Sutter Attorneys Symbol IDH City, State Zip Eden Prairie, MN 55344 David Engel Auditors Arthur Andersen Latest Fiscal YE 30-Nov-00 Telephone 952-975-6200 David Oswald Transfer Agent Norwest Minnesota Latest Rprt Per 31-May-01 Fax 952-975-6262 Margo Barnhart IPI has about 220 franchised Insty-Prints locations which provide graphic design, typesetting, binding, and other commercial printing services to companies for products such as stationery, business cards, forms, brochures, and Bank overhead transparencies. Subsidiary Change of Mind Learning Systems franchises Dreamcatcher Learning Centers, which provide supplemental education in reading, writing, math, G.E.D. & college prep studies. - ------------------------------------------------------------------------------------------------------------------------------------ - ----------------------------------------------------------------------------------------------------------- Income and Cashflow Statement Data - ----------------------------------------------------------------------------------------------------------- ($ in thousands, except per share) LTM Six Months Ended Fiscal Years Ended --------------------------- ------------------------- May-01 May-01 May-00 Nov-00 Nov-99 ------------- --------------------------- ------------------------- Revenue $ 8,518 $ 3,919 $ 4,695 $ 9,294 $ 10,278 COGS 1,773 3,279 3,972 2,466 3,026 ---------- ------------------------- ----------------------- Gross Profit 6,745 640 723 6,828 7,252 Selling, General & Administrative 6,447 787 260 5,920 4,853 Research & Development - - - - - Other Operating 1,116 23 19 1,112 240 ---------- ------------------------- ----------------------- Operating Income (818) (170) 444 (204) 2,159 Interest Expense, net 174 57 - 117 - Other, net - - - - - ---------- ------------------------- ----------------------- Pre-tax Income (992) (227) 444 (321) 2,159 Taxes (397) (91) 178 (129) 864 ---------- ------------------------- ----------------------- After-tax Income (595) (136) 266 (192) 1,295 Minority Interest - - - - - Equity in Affiliates - - - - - ---------- ------------------------- ----------------------- Normalized Net Income (595) (136) 266 (192) 1,295 Preferred Dividends - - - - - ---------- ------------------------- ----------------------- Normalized Net Income to Common $ (595) $ (136) $ 266 $ (192) $ 1,295 ========== ========================= ======================= EBIT $ (818) $ (170) $ 444 $ (204) $ 2,159 Depreciation & Amortization $ 501 $ 228 $ 261 $ 534 $ 440 EBITDA $ (317) $ 58 $ 705 $ 330 $ 2,599 CAPEX $ 210 $ 97 $ 96 $ 209 $ 371 EBITDA -CAPEX $ (527) $ (39) $ 609 $ 121 $ 2,228 GAAP Operating Cash Flow $ (1,713) $ (1,292) $ 1,152 $ 731 $ 2,214 - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- Special Item Reconciliation: Pre-tax Special Items Unusual Items $ 7,471 $ 7,325 $ 758 $ 904 $ 811 Accounting Changes $ - $ - $ - $ - $ - Discontinued Operations $ - $ - $ - $ - $ - Extraordinary Items $ - $ - $ - $ - $ - Total $ 7,471 $ 7,325 $ 758 $ 904 $ 811 Total After-tax Special Items $ 4,483 $ 4,395 $ 455 $ 542 $ 487 Tax Provision on Special Items $ 2,988 $ 2,930 $ 303 $ 362 $ 324 Reported Taxes $ 2,591 $ 2,839 $ 481 $ 233 $ 1,188 Reported Net Income $ 3,888 $ 4,259 $ 721 $ 350 $ 1,782 - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- Basic Reported Weighted Avg Shares Out (000's) 4,859 4,835 4,847 4,734 Basic Normalized EPS $ (0.13) $ (0.03) $ 0.06 $ (0.04) $ 0.27 Basic Reported EPS $ 0.80 $ 0.88 $ 0.15 $ 0.07 $ 0.38 Diluted Reported Weighted Avg Shares Out (000's) 4,859 4,835 4,847 4,734 Diluted Normalized EPS $ (0.13) $ (0.03) $ 0.06 $ (0.04) $ 0.27 Diluted Reported EPS $ 0.80 $ 0.88 $ 0.15 $ 0.07 $ 0.38 - ----------------------------------------------------------------------------------------------------------- - ----------------------------------------------------------------------------------------------------------- Profitability Ratios (as % of Revenue) - ----------------------------------------------------------------------------------------------------------- Core Gross Profit 79.2% 16.3% 15.4% 73.5% 70.6% S,G & A 75.7% 20.1% 5.5% 63.7% 47.2% Operating Income -9.6% -4.3% 9.5% -2.2% 21.0% Pre-Tax -11.6% -5.8% 9.5% -3.5% 21.0% EBIT -9.6% -4.3% 9.5% -2.2% 21.0% EBITDA -3.7% 1.5% 15.0% 3.6% 25.3% Normalized Net Income -7.0% -3.5% 5.7% -2.1% 12.6% Reported Net Income 45.6% 108.7% 15.4% 3.8% 17.3% - ----------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Balance Sheet Data - -------------------------------------------------------------------------------- ($ in thousands, except per share) As of As of ----------------------------- 31-May-01 Nov-00 Nov-99 ----------- ----------------------------- Cash & Equivalents $ 980 $ 643 $ 2,022 Marketable Securities 29,579 15,638 6,504 ---------- ---------- --------- Total Cash & Mkt Securities 30,559 16,281 8,526 Accounts Receivable 1,338 1,370 1,371 Inventory 196 242 271 Other Current Assets 3,297 2,103 4,591 ---------- ---------- --------- Total Current Assets 35,390 19,996 14,759 PPE, net 727 776 1,246 Intangibles, net 3,274 3,393 3,151 Investments - - - Other Assets 692 753 860 ---------- ---------- --------- Total Assets $ 40,083 $ 24,918 $ 20,016 ========== ========== ========= Accounts Payable $ 564 $ 676 $ 485 Accrued Expenses 927 1,023 878 Short Term Debt - 4,438 - Short Term Capital Leases - - - Other Current Liabilities 6,712 200 390 ---------- ---------- --------- Total Current Liabilities 8,203 6,337 1,753 Other LT Liabilities - - - Long Term Debt - - - Long Term Capital Leases 68 105 319 Minority Interests - - - Pref Stock (Liq Value) - - - ---------- ---------- --------- Total Liabilities & Pref Stock 8,271 6,442 2,072 ---------- ---------- --------- Common Equity 31,812 18,476 17,944 ---------- ---------- --------- Total Liabilities & Equity $ 40,083 $ 24,918 $ 20,016 ========== ========== ========= Common Shares Outstanding (000's) 4,859 4,859 4,734 Cash Value per share $ 6.29 $ 3.35 $ 1.80 Book Value per share $ 6.55 $ 3.80 $ 3.79 Tangible Book Value per share $ 5.87 $ 3.10 $ 3.12 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Effectiveness and Efficiency - -------------------------------------------------------------------------------- A/R Turnover 6.29x 6.78x 7.50x Inventory Turnover 8.10x 9.61x 11.17x Asset Turnover 0.26x 0.41x 0.51x Days Sales Outstanding 58.0 53.8 48.7 Days Inventory Outstanding 45.1 38.0 32.7 Days Payable Outstanding 24.2 22.3 21.8 Return on Avg Assets -1.8% -0.9% na Return on Avg Common Equity -2.4% -1.1% na - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Financial Strength - -------------------------------------------------------------------------------- Current Ratio 4.31 3.16 8.42 Quick Ratio 4.29 3.12 8.26 Total Debt $ 68 $ 4,543 $ 319 Net Debt $ (30,491) $ (11,738 $ (8,207) Total Capitalization $ 31,880 $ 23,019 $ 18,263 Total Debt/Total Capitalization 0.2% 19.7% 1.7% Net Debt/Total Capitalization -95.6% -51.0% -44.9% Total Debt/EBITDA na 13.77 0.12x EBITDA/Interest Expense na 2.82x na EBITDA-CAPEX/Interest Expense na 1.03x na - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Market Information - -------------------------------------------------------------------------------- As of Date 9-Oct-01 Exchange AMEX Stock Price $ 3.94 52 Week High $ 5.50 52 Week Low $ 2.06 Avg. Daily Volume (000's) 10 Beta 0.15 Shares Outstanding (000's) 4,860 Total Outstanding Warrants & Options (000's) - Float (000's) 1,500 Market Cap $ 19,148.4 Enterprise Value (EV) $(11,342.6) Institutional % Owned 8.00% Number of Institutions 5 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Valuation Ratios - -------------------------------------------------------------------------------- Multiple of -------------------------- Market Cap EV -------------------------- Latest Twelve Months Revenue 2.25x na EBIT na na EBITDA na na Normalized Net Income na na Basic Normalized EPS na Projected Dec-01 Mean Revenue na na Dec-01 Mean Revenue na na Dec-01 Mean EPS na na Dec-02 Mean EPS na na Most Recent Filing Assets 0.48x na Common Equity 0.60x na Tangible Common Equity 0.67x na - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Mean Consensus Estimates - -------------------------------------------------------------------------------- Year Ending # Ests Revenue EPS - -------------------------------------------------------------------------------- December-01 - $ - $ - December-02 - $ - $ - LT Growth - na na - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Period Growth Rates - -------------------------------------------------------------------------------- Six Months Ended Fiscal Years Ended May-01 Nov-00 ---------------- ------------------ Revenue -16.5% -9.6% EBIT -138.3% -109.4% EBITDA -91.8% -87.3% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Notes Unusual Items comprise investment income. - -------------------------------------------------------------------------------- Sources: Multex, Yahoo Finance, and Hoovers - -------------------------------------------------------------------------------------------------------------------------------- Impreso, Inc Overview - -------------------------------------------------------------------------------------------------------------------------------- Name Impreso, Inc Address 652 Southwestern Officers Marshall Sorokwasz Attorneys Arthur Andersen Symbol ZCOM City, State Zip Coppell, TX 75019 Richard Bloom Auditors Latest Fiscal YE 31-Aug-00 Telephone 972-462-0100 Donald Jett Transfer Agent American Stock Latest Rprt Per 31-May-01 Fax 972-462-7764 Susan Atkins Transfer & Trust Under the IBM brand, IMPRESO brand and private label, Impreso makes continuous-feed stock business forms, thermal and plain fax paper, paper for copy machines and printers, and special surface papers. They have three manufacturing plants and distributes in North America through over 45 warehouses. - -------------------------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Income and Cashflow Statement Data - --------------------------------------------------------------------------------------------------------------- ($ in thousands, except per share) LTM Nine Months Ended Fiscal Years Ended ---------------------- ------------------------- May-01 May-01 May-00 Aug-00 Aug-99 --------- ---------------------- ------------------------- Revenue $ 87,820 $ 65,660 $ 51,958 $ 74,118 $ 61,506 COGS 77,481 57,863 45,007 64,625 53,845 --------- ---------------------- ------------------------- Gross Profit 10,339 7,797 6,951 9,493 7,661 Selling, General & Administrative 7,397 5,582 5,023 6,838 5,606 Research & Development - - - - - Other Operating - - - - - --------- ---------------------- ------------------------- Operating Income 2,942 2,215 1,928 2,655 2,055 Interest Expense, net 1,547 1,140 897 1,304 833 Other, net 214 159 82 137 42 --------- ---------------------- ------------------------- Pre-tax Income 1,609 1,234 1,113 1,488 1,264 Taxes 675 488 370 557 490 --------- --------- ---------- ------------------------- After-tax Income 934 746 743 931 774 Minority Interest - - - - - Equity in Affiliates - - - - - --------- ---------------------- ------------------------- Normalized Net Income 934 746 743 931 774 Preferred Dividends - - - - - --------- ---------------------- ------------------------- Normalized Net Income to Common $ 934 $ 746 $ 743 $ 931 $ 774 ========= ====================== ========================= EBIT $ 3,156 $ 2,374 $ 2,010 $ 2,792 $ 2,097 Depreciation & Amortization $ 806 $ 619 $ 502 $ 689 $ 545 EBITDA $ 3,962 $ 2,993 $ 2,512 $ 3,481 $ 2,642 CAPEX $ 1,482 $ 220 $ 1,035 $ 2,297 $ 658 EBITDA - CAPEX $ 2,480 $ 2,773 $ 1,477 $ 1,184 $ 1,984 GAAP Operating Cash Flow $ 3,675 $ 5,098 $ (3,676) $ (5,099) $ (91) - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Special Item Reconciliation: Pre-tax Special Items Unusual Items $ - $ - $ - $ - $ - Accounting Changes $ - $ - $ - $ - $ - Discontinued Operations $ - $ - $ - $ - $ - Extraordinary Items $ - $ - $ - $ - $ - Total $ - $ - $ - $ - $ - Total After-tax Special Items $ - $ - $ - $ - $ - Tax Provision on Special Items $ - $ - $ - $ - $ - Reported Taxes $ 675 $ 488 $ 370 $ 557 $ 490 Reported Net Income $ 934 $ 746 $ 743 $ 931 $ 774 - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Basic Reported Weighted Avg Shares Out (000's) 5,283 5,293 5,293 5,293 Basic Normalized EPS $ 0.18 $ 0.14 $ 0.14 $ 0.18 $ 0.15 Basic Reported EPS $ 0.18 $ 0.14 $ 0.14 $ 0.18 $ 0.15 Diluted Reported Weighted Avg Shares Out (000's) 5,283 5,293 5,293 5,293 Diluted Normalized EPS $ 0.18 $ 0.14 $ 0.14 $ 0.18 $ 0.15 Diluted Reported EPS $ 0.18 $ 0.14 $ 0.14 $ 0.18 $ 0.15 - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Profitability Ratios (as % of Revenue) - --------------------------------------------------------------------------------------------------------------- Core Gross Profit 11.8% 11.9% 13.4% 12.8% 12.5% S,G & A 8.4% 8.5% 9.7% 9.2% 9.1% Operating Income 3.4% 3.4% 3.7% 3.6% 3.3% Pre-Tax 1.8% 1.9% 2.1% 2.0% 2.1% EBIT 3.6% 3.6% 3.9% 3.8% 3.4% EBITDA 4.5% 4.6% 4.8% 4.7% 4.3% Normalized Net Income 1.1% 1.1% 1.4% 1.3% 1.3% Reported Net Income 1.1% 1.1% 1.4% 1.3% 1.3% - --------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Balance Sheet Data - -------------------------------------------------------------------------------- ($ in thousands, except per share) As of As of ----------------------- 31-May-01 Aug-00 Aug-99 --------- ----------------------- Cash & Equivalents $ 187 $ 150 $ 23 Marketable Securities 11 11 11 --------- ----------------------- Total Cash & Mkt Securities 198 161 34 Accounts Receivable 10,800 8,914 6,296 Inventory 36,667 21,233 18,801 Other Current Assets 473 280 724 --------- ----------------------- Total Current Assets 48,138 30,588 25,855 PPE, net 10,562 8,769 7,210 Intangibles, net - - - Investments - - - Other Assets 240 27 19 --------- ----------------------- Total Assets $ 58,940 $ 39,384 $ 33,084 ========= ======================= Accounts Payable $ 16,176 $ 6,624 $ 9,054 Accrued Expenses 3,157 1,985 1,679 Short Term Debt 17,425 12,469 6,358 Short Term Capital Leases - - - Other Current Liabilities 624 255 63 --------- ----------------------- Total Current Liabilities 37,382 21,333 17,154 Other LT Liabilities 858 764 728 Long Term Debt 6,488 3,782 2,629 Long Term Capital Leases - - - Minority Interests - - - Pref Stock (Liq Value) - - - --------- ----------------------- Total Liabilities & Pref Stock 44,728 25,879 20,511 --------- ----------------------- Common Equity 14,212 13,505 12,573 --------- ----------------------- Total Liabilities & Equity $ 58,940 $ 39,384 $ 33,084 ========= ======================= Common Shares Outstanding (000's) 5,293 5,293 5,293 Cash Value $ per share $ 0.04 $ 0.03 $ 0.01 Book Value per share $ 2.69 $ 2.55 $ 2.38 Tangible Book Value per share $ 2.69 $ 2.55 $ 2.38 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Effectiveness and Efficiency - -------------------------------------------------------------------------------- A/R Turnover 8.91x 9.75x 9.77x Inventory Turnover 2.68x 3.23x 2.86x Asset Turnover 1.79x 2.05x 1.86x Days Sales Outstanding 41.0 37.5 37.4 Days Inventory Outstanding 136.4 113.1 127.4 Days Payable Outstanding 49.0 40.0 55.6 Return on Avg Assets 1.9% 2.6% na Return on Avg 6.7% 7.1% na Common Equity - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Financial Strength - -------------------------------------------------------------------------------- Current Ratio 1.29 1.43 1.51 Quick Ratio 0.31 0.44 0.41 Total Debt $ 23,913 $ 16,251 $ 8,987 Net Debt $ 23,715 $ 16,090 $ 8,953 Total Capitalization $ 38,125 $ 29,756 $ 21,560 Total Debt/Total Capitalization 62.7% 54.6% 41.7% Net Debt/Total Capitalization 62.2% 54.1% 41.5% Total Debt/EBITDA 6.04x 4.67x 3.40x EBITDA/Interest Expense 2.56x 2.67x 3.17x EBITDA-CAPEX/Interest Expense 1.60x 0.91x 2.38x - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Market Information - -------------------------------------------------------------------------------- As of Date 9-Oct-01 Exchange NasdaqSC Stock Price $ 2.01 52 Week High $ 4.09 52 Week Low $ 0.15 Avg. Daily Volume (000's) 1 Beta 1.19 Shares Outstanding (000's) 5,280 Total Outstanding Warrants & Options (000's) - Float (000's) 1,500 Market Cap $ 10,612.8 Enterprise Value (EV) $ 34,327.8 Institutional % Owned 1.00% Number of Institutions 10 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Valuation Ratios - -------------------------------------------------------------------------------- Multiple of --------------------- Market Cap EV --------------------- Latest Twelve Months Revenue 0.12x 0.39x EBIT 3.36x 10.88x EBITDA 2.68x 8.66x Normalized Net Income 11.36x 36.75x Basic Normalized EPS 11.17x Projected Dec-01 Mean Revenue na na Dec-01 Mean Revenue na na Dec-01 Mean EPS na na Dec-02 Mean EPS na na Most Recent Filing Assets 0.18x 0.58x Common Equity 0.75x 2.42x Tangible Common Equity 0.75x 2.42x - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Mean Consensus Estimates - -------------------------------------------------------------------------------- Year Ending # Ests Revenue EPS - -------------------------------------------------------------------------------- December-01 - $ - $ - December-02 - $ - $ - LT Growth - na na - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Period Growth Rates - -------------------------------------------------------------------------------- Nine Months Ended Fiscal Years Ended May-01 Aug-00 -------------- ----------------- Revenue 26.4% 20.5% EBIT 18.1% 33.1% EBITDA 19.1% 31.8% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Notes - -------------------------------------------------------------------------------- Sources: Multex, Yahoo Finance, and Hoovers - ------------------------------------------------------------------------------------------------------------------------------------ iPrint Technologies Overview - ------------------------------------------------------------------------------------------------------------------------------------ Name iPrint Technologies Address 255 Constitution Officers Royal Farros Attorneys Symbol IPRT City, State Zip Menlo Park, CA 94025 Robyn Cerutti Auditors Arthur Andersen Lease Fiscal YE 31-Dec-00 Telephone 650-298-8500 Gregory Korjeff Transfer Agent American Latest Rprt Per 30-Jun-01 Fax 650-364-7742 Nickoletta Swank Stock Transfer & Trust iPrint Technologies allows customers to design, proof, and order some 3,500 customized print products -- including cards, stationery, label, mugs, and T-shirts -- through its retail Web site. The company, which outsources the printing work, also offers specialized printing and photocopying services; operates co-branded printing Web sites with 3M, OfficeMax, and other firms; and develops sites for third parties. - ------------------------------------------------------------------------------------------------------------------------------------ - ---------------------------------------------------------------------------------------------------- Income and Cashflow Statement Data - ---------------------------------------------------------------------------------------------------- ($ in thousands, except per share) LTM Six Months Ended Fiscal Years Ended ---------------------- ---------------------- Jun-01 Jun-01 Jun-00 Dec-00 Dec-99 ---------- ---------------------- ---------------------- Revenue $ 15,137 $ 5,649 $ 7,581 $ 17,069 $ 3,256 COGS 10,087 3,597 5,531 12,021 2,265 ---------- ---------------------- ---------------------- Gross Profit 5,050 2,052 2,050 5,048 991 Selling, General & Administrative 23,830 8,815 19,749 34,764 10,534 Research & Development 6,139 2,964 3,477 6,652 3,544 Other Operating 677 (23) 1,149 1,849 668 ---------- ---------------------- ---------------------- Operating Income (25,596) (9,704) (22,325) (38,217) (13,755) Interest Expense, net - - - - - Other, net 2,120 798 920 2,242 323 ---------- ---------------------- ---------------------- Pre-tax Income (23,476) (8,906) (21,405) (35,975) (13,432) Taxes - - - - - ---------- ---------------------- ---------------------- After-tax Income (23,476) (8,906) (21,405) (35,975) (13,432) Minority Interest - - - - - Equity in Affiliates - - - - - ---------- ---------------------- ---------------------- Normalized Net Income (23,476) (8,906) (21,405) (35,975) (13,432) Preferred Dividends - - - - - ---------- ---------------------- ---------------------- Normalized Net Income to Common $ (23,476) $ (8,906) $ (21,405) $ (35,975) $ (13,432) ========== ====================== ====================== EBIT $ (23,476) $ (8,906) $ (21,405) $ (35,975) $ (13,432) Depreciation & Amortization $ 4,028 $ 1,017 $ 947 $ 3,958 $ 362 EBITDA $ (19,448) $ (7,889) $ (20,458) $ (32,017) $ (13,070) CAPEX $ 576 $ 341 $ 3,487 $ 3,722 $ 1,851 EBITDA - CAPEX $ (20,024) $ (8,230) $ (23,945) $ (35,739) $ (14,921) GAAP Operating Cash Flow $ (20,893) $ (8,869) $ (19,976) $ (32,000) $ (10,845) - ---------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------- Special Item Reconciliation: Pre-tax Special Items Unusual Items $ - $ - $ - $ - $ - Accounting Changes $ - $ - $ - $ - $ - Discontinued Operations $ - $ - $ - $ - $ - Extraordinary Items $ - $ - $ - $ - $ - Total $ - $ - $ - $ - $ - Total After-tax Special Items $ - $ - $ - $ - $ - Tax Provision on Special Items $ - $ - $ - $ - $ - Reported Taxes $ - $ - $ - $ - $ - Reported Net Income $ (23,476) $ (8,906) $ (21,405) $ (35,975) $ (13,432) - ---------------------------------------------------------------------------------------------------- - ---------------------------------------------------------------------------------------------------- Basic Reported Weighted Avg Shares Out (000's) 30,130 21,892 25,970 7,265 Basic Normalized EPS $ (0.71) $ (0.30) $ (0.98) $ (1.39) $ (1.85) Basic Reported EPS $ (0.71) $ (0.30) $ (0.98) $ (1.39) $ (1.85) Diluted Reported Weighted Avg Shares Out (000's) 30,130 21,892 25,970 7,265 Diluted Normalized EPS $ (0.71) $ (0.30) $ (0.98) $ (1.39) $ (1.85) Diluted Reported EPS $ (0.71) $ (0.30) $ (0.98) $ (1.39) $ (1.85) - ---------------------------------------------------------------------------------------------------- Profitability Ratios (as % of Revenue) - ---------------------------------------------------------------------------------------------------- Core Gross Profit 33.4% 36.3% 27.0% 29.6% 30.4% S,G & A 157.4% 156.0% 260.5% 203.7% 323.5% Operating Income -169.1% -171.8% -294.5% -223.9% -422.5% Pre-Tax -155.1% -157.7% -282.4% -210.8% -412.5% EBIT -155.1% -157.7% -282.4% -210.8% -412.5% EBITDA -128.5% -139.7% -269.9% -187.6% -401.4% Normalized Net Income -155.1% -157.7% -282.4% -210.8% -412.5% Reported Net Income -155.1% -157.7% -282.4% -210.8% -412.5% - ---------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Balance Sheet Data - -------------------------------------------------------------------------------- ($ in thousands, except per share) As of As of ------------------------- 30-Jun-01 Dec-00 Dec-99 ---------- ------------------------- Cash & Equivalents $ 10,645 $ 19,283 $ 15,080 Marketable Securities - - - ---------- ------------------------- Total Cash & Mkt Securities 10,645 19,283 15,080 Accounts Receivable 1,227 1,874 255 Inventory - - - Other Current Assets 7,955 8,656 892 ---------- ------------------------- Total Current Assets 19,827 29,813 16,227 PPE, net 3,202 4,070 2,136 Intangibles, net - - - Investments - - - Other Assets 2,163 205 - ---------- ------------------------- Total Assets $ 25,192 $ 34,088 $ 18,363 ========== ========================= Accounts Payable $ 2,361 $ 2,509 $ 935 Accrued Expenses 3,233 2,546 2,121 Short Term Debt 6 196 96 Short Term - - - Capital Leases Other Current Liabilities - - - ---------- ------------------------- Total Current Liabilities 5,600 5,251 3,152 Other LT Liabilities - - - Long Term Debt 10 12 119 Long Term Capital Leases - - - Minority Interests - - - Pref Stock (Liq Value) - - 30,793 ---------- ------------------------- Total Liabilities & Pref Stock 5,610 5,263 34,064 ---------- ------------------------- Common Equity 19,582 28,825 (15,701) ---------- ------------------------- Total Liabilities & Equity $ 25,192 $ 34,088 $ 18,363 ========== ========================= Common Shares Outstanding (000's) 30,202 30,054 8,336 Cash Value per share $ 0.35 $ 0.64 $ 1.81 Book Value per share $ 0.65 $ 0.96 $ (1.88) Tangible Book Value per share $ 0.65 $ 0.96 $ (1.88) - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Effectiveness and Efficiency - -------------------------------------------------------------------------------- A/R Turnover 9.76x 16.03x 12.77x Inventory Turnover na na na Asset Turnover 0.51x 0.65x 0.18x Days Sales Outstanding 37.4 22.8 28.6 Days Inventory Outstanding na na na Days Payable Outstanding 21.8 11.4 20.1 Return on Avg Assets -79.2% -137.2% na Return on Avg Common Equity -97.0% -548.2% na - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Financial Strength - -------------------------------------------------------------------------------- Current Ratio 3.54 5.68 5.15 Quick Ratio 3.54 5.68 5.15 Total Debt $ 16 $ 208 $ 31,008 Net Debt (1) $ 16 $ 208 $ 31,008 Total Capitalization $ 19,598 $ 29,033 $ 15,307 Total Debt/Total Capitalization 0.1% 0.7% 202.6% Net Debt/Total Capitalization 0.1% 0.7% 202.6% Total Debt/EBITDA na na na EBITDA/Interest Expense na na na EBITDA-CAPEX/Interest Expense na na na - -------------------------------------------------------------------------------- - ----------------------------------------------------------------- Market Information - ----------------------------------------------------------------- As of Date 9-Oct-01 Exchange NasdaqNM Stock Price $ 0.19 52 Week High $ 3.06 52 Week Low $ 0.16 Avg. Daily Volume (000's) 18 Beta - Shares Outstanding (000's) 30,200 Total Outstanding Warrants & Options (000's) - Float (000's) 11,000 Market Cap $ 5,738.0 Enterprise Value (EV) $ 5,754.0 Institutional % Owned 1.00% Number of Institutions 17 - ----------------------------------------------------------------- - -------------------------------------------------------------------- Valuation Ratios - -------------------------------------------------------------------- Multiple of --------------------------- Market Cap EV --------------------------- Latest Twelve Months Revenue 0.38x 0.38x EBIT na na EBITDA na na Normalized Net Income na na Basic Normalized EPS na Projected Dec-01 Mean Revenue 0.53x 0.53x Dec-01 Mean Revenue 0.37x 0.37x Dec-01 Mean EPS na na Dec-02 Mean EPS na na Most Recent Filing Assets 0.23x 0.23x Common Equity 0.29x 0.29x Tangible Common Equity 0.29x 0.29x - -------------------------------------------------------------------- - -------------------------------------------------------------------- Mean Consensus Estimates - -------------------------------------------------------------------- Year Ending # Ests Revenue EPS - -------------------------------------------------------------------- December-01 4 $ 10,871 $ (0.57) December-02 1 $ 15,560 $ (0.05) LT Growth - na na - -------------------------------------------------------------------- - -------------------------------------------------------------------- Period Growth Rates - -------------------------------------------------------------------- Six Months Ended Fiscal Years Ended Jun-01 Dec-00 --------------- ---------------- Revenue -25.5% 424.2% EBIT -58.4% 167.8% EBITDA -61.4% 145.0% - -------------------------------------------------------------------- - -------------------------------------------------------------------------------- Notes (1) Cash is not included in the calcuation for Net Debt due to the large requirements of cash working capital in the business. - -------------------------------------------------------------------------------- Sources: Multex, Yahoo Finance, and Hoovers - ------------------------------------------------------------------------------------------------------------------------------------ Paris Corporation Overview - ------------------------------------------------------------------------------------------------------------------------------------ Name Paris Corporation Address 122 Kisel Road Officers Dominic Toscani Attorneys Symbol PBFI City, State Zip Burlington, NJ 08016 Gerard Toscani Auditors Goldenberg Rosenthal Latest Fiscal YE 30-Sep-00 Telephone 609-387-7300 William Loman Transfer Agent Chase Mellon Latest Rprt Per 30-Jun-01 Fax 609-971-6658 Shareholder Services Paris makes papers and other products for laser and inkjet printers, including its growing Burlington line, which has a marketing agreement with Microsoft's Picture It creative software products. Paris sells its products through office products distributors and retailers in North America. It also owns 57% of Signature, which markets office products to supermarkets and drugstores. - ------------------------------------------------------------------------------------------------------------------------------------ - -------------------------------------------------------------------------------- Income and Cashflow Statement Data - -------------------------------------------------------------------------------- ($ in thousands, except per share) LTM Nine Months Ended Fiscal Years Ended ------------------ --------------------- Jun-01 Jun-01 Jun-00 Sep-00 Sep-99 -------- ------------------ --------------------- Revenue $ 43,232 $ 32,278 $ 32,057 $43,011 $ 35,433 COGS 37,743 27,887 28,665 38,521 31,358 -------- -------- -------- ------- ---------- Gross Profit 5,489 4,391 3,392 4,490 4,075 Selling, General & Administrative 4,238 3,319 3,318 4,237 3,808 Research & Development - - - - - Other Operating - - - - - -------- -------- -------- ------- ---------- Operating Income 1,251 1,072 74 253 267 Interest Expense, net 149 149 7 7 58 Other, net 940 602 672 1,010 1,250 -------- -------- -------- ------- ---------- Pre-tax Income 2,042 1,525 739 1,256 1,459 Taxes 710 424 317 603 548 -------- -------- -------- ------- ---------- After-tax Income 1,332 1,101 422 653 911 Minority Interest (166) (141) 35 10 50 Equity in Affiliates - - - - - -------- -------- -------- ------- ---------- Normalized Net Income 1,166 960 457 663 961 Preferred Dividends - - - - - -------- -------- -------- ------- ---------- Normalized Net Income to Common $ 1,166 $ 960 $ 457 $ 663 $ 961 ======== ======== ======== ======= ========== EBIT $ 2,191 $ 1,674 $ 746 $ 1,263 $ 1,517 Depreciation & $ 656 $ 299 $ 371 $ 728 $ 556 Amortization EBITDA $ 2,847 $ 1,973 $ 1,117 $ 1,991 $ 2,073 CAPEX $ (368) $ (320) $ 248 $ 200 $ 912 EBITDA - CAPEX $ 3,215 $ 2,293 $ 869 $ 1,791 $ 1,161 GAAP Operating Cash Flow $ 2,354 $ 1,155 $ (840) $ 359 $ 628 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Special Item Reconciliation: Pre-tax Special Items Unusual Items $ - $ - $ - $ - $ - Accounting Changes $ - $ - $ - $ - $ - Discontinued Operations $ - $ - $ - $ - $ - Extraordinary Items $ - $ - $ - $ - $ - Total $ - $ - $ - $ - $ - Total After-tax Special Items $ - $ - $ - $ - $ - Tax Provision on Special Items $ - $ - $ - $ - $ - Reported Taxes $ 710 $ 424 $ 317 $ 603 $ 548 Reported Net Income $ 1,166 $ 960 $ 457 $ 663 $ 961 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Basic Reported Weighted Avg Shares Out (000's) 3,310 3,264 3,234 3,526 Basic Normalized EPS $ 0.36 $ 0.29 $ 0.14 $ 0.21 $ 0.27 Basic Reported EPS $ 0.36 $ 0.29 $ 0.14 $ 0.21 $ 0.27 Diluted Reported Weighted Avg Shares Out (000's) 3,310 3,264 3,234 3,526 Diluted Normalized EPS $ 0.36 $ 0.29 $ 0.14 $ 0.21 $ 0.27 Diluted Reported EPS $ 0.36 $ 0.29 $ 0.14 $ 0.21 $ 0.27 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Profitability Ratios (as % of Revenue) - -------------------------------------------------------------------------------- Core Gross Profit 12.7% 13.6% 10.6% 10.4% 11.5% S,G & A 9.8% 10.3% 10.4% 9.9% 10.7% Operating Income 2.9% 3.3% 0.2% 0.6% 0.8% Pre-Tax 4.7% 4.7% 2.3% 2.9% 4.1% EBIT 5.1% 5.2% 2.3% 2.9% 4.3% EBITDA 6.6% 6.1% 3.5% 4.6% 5.9% Normalized Net Income 2.7% 3.0% 1.4% 1.5% 2.7% Reported Net Income 2.7% 3.0% 1.4% 1.5% 2.7% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Balance Sheet Data - -------------------------------------------------------------------------------- ($ in thousands, except per share) As of As of ----------------------------- 30-Jun-01 Sep-00 Sep-99 -------------- ----------------------------- Cash & Equivalents $ 4,475 $ 2,828 $ 3,880 Marketable Securities 4,062 3,686 3,567 ---------- --------------------------- Total Cash & Mkt Securities 8,537 6,514 7,447 Accounts Receivable 5,401 5,422 5,959 Inventory 3,842 3,862 4,167 Other Current Assets 970 1,096 645 ---------- --------------------------- Total Current Assets 18,750 16,894 18,218 PPE, net 1,598 1,590 1,942 Intangibles, net - - - Investments - 251 500 Other Assets 573 542 760 ---------- --------------------------- Total Assets $ 20,921 $ 19,277 $ 21,420 ========== =========================== Accounts Payable $ 3,564 $ 4,147 $ 5,197 Accrued Expenses 289 297 700 Short Term Debt 1,139 - - Short Term Capital Leases - - - Other Current Liabilities 366 330 623 ---------- --------------------------- Total Current Liabilities 5,358 4,774 6,520 Other LT Liabilities - - 219 Long Term Debt - - - Long Term Capital Leases - - - Minority Interests 225 84 94 Pref Stock (Liq Value) - - - ---------- --------------------------- Total Liabilities & Pref Stock 5,583 4,858 6,833 ---------- --------------------------- Common Equity 15,338 14,419 14,587 ---------- --------------------------- Total Liabilities & Equity $ 20,921 $ 19,277 $ 21,420 ========== =========================== Common Shares Outstanding (000's) 3,271 3,938 3,938 Cash Value per share $ 2.61 $ 1.65 $ 1.89 Book Value per share $ 4.69 $ 3.66 $ 3.70 Tangible Book Value per share $ 4.69 $ 3.66 $ 3.70 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Effectiveness and Efficiency - -------------------------------------------------------------------------------- A/R Turnover 7.99x 7.56x 5.95x Inventory Turnover 9.80x 9.60x 7.53x Asset Turnover 2.15x 2.11x 1.65x Days Sales Outstanding 45.7 48.3 61.4 Days Inventory Outstanding 37.3 38.0 48.5 Days Payable Outstanding 33.5 39.9 53.9 Return on Avg Assets 5.8% 3.3% na Return on Avg Common Equity 7.8% 4.6% na - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Financial Strength - -------------------------------------------------------------------------------- Current Ratio 3.50 3.54 2.79 Quick Ratio 2.78 2.73 2.16 Total Debt $ 1,364 $ 84 $ 94 Net Debt $ (7,173) $ (6,430) $ (7,353) Total Capitalization $ 16,702 $ 14,503 $ 14,681 Total Debt/Total Capitalization 8.2% 0.6% 0.6% Net Debt/Total Capitalization -42.9% -44.3% -50.1% Total Debt/EBITDA 0.48x 0.04x 0.05x EBITDA/Interest Expense 19.11x 284.43x 35.74x EBITDA-CAPEX/Interest Expense 21.58x 255.86x 20.02x - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Market Information - -------------------------------------------------------------------------------- As of Date 9-Oct-01 Exchange NasdaqSC Stock Price $ 2.80 52 Week High $ 3.70 52 Week Low $ 1.75 Avg. Daily Volume (000's) 1 Beta - Shares Outstanding (000's) 3,270 Total Outstanding Warrants & Options (000's) - Float (000's) 1,000 Market Cap $ 9,156.0 Enterprise Value (EV) $ 1,983.0 Institutional % Owned 1.00% Number of Institutions 5 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Valuation Ratios - -------------------------------------------------------------------------------- Multiple of -------------------------- Market Cap EV -------------------------- Latest Twelve Months Revenue 0.21x 0.05x EBIT 4.18x 0.91x EBITDA 3.22x 0.70x Normalized Net Income 7.85x 1.70x Basic Normalized EPS 7.78x Projected Dec-01 Mean Revenue na na Dec-01 Mean Revenue na na Dec-01 Mean EPS na na Dec-02 Mean EPS na na Most Recent Filing Assets 0.44x 0.09x Common Equity 0.60x 0.13x Tangible Common Equity 0.60x 0.13x - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Mean Consensus Estimates - -------------------------------------------------------------------------------- Year Ending # Ests Revenue EPS - -------------------------------------------------------------------------------- December-01 - $ - $ - December-02 - $ - $ - LT Growth - na na - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Period Growth Rates - -------------------------------------------------------------------------------- Nine Months Ended Fiscal Years Ended Jun-01 Sep-00 -------------------- --------------------- Revenue 0.7% 21.4% EBIT 124.4% -16.7% EBITDA 76.6% -4.0% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Notes - -------------------------------------------------------------------------------- Sources: Multex, Yahoo Finance, and Hoovers - ------------------------------------------------------------------------------------------------------------------------------------ BCT International Overview - ------------------------------------------------------------------------------------------------------------------------------------ Name BCT International Address 3000 N.E. 30th Pl Officer William Wilkerson Symbol BCTI City, State Zip Fort Lauderdale, FL 33306 Michael Hull Latest Fiscal YE 28-Feb-01 Telephone 954-563-1224 Henry Johnson Latest Rprt Per 31-Aug-01 Fax 954-565-0742 Attorneys Auditors PriceWaterhouseCoopers Transfer Agent Registrar & Transfer Co BCT International is a wholesale printing chain with 84 franchises in the US, Canada, and Argentina. The franchises specialize in thermography and make items such as business cards, letterheads, and labels, which are sold to retail printers, mailing centers, and superstores. BCT's Pelican Paper Products division supplies paper and printing equipment to the franchisees. The company also operates Orderprinting.com. - ------------------------------------------------------------------------------------------------------------------------------------ - --------------------------------------------------------------------------------------------------------------- Income and Cashflow Statement Data - --------------------------------------------------------------------------------------------------------------- ($ in thousands, except per share) LTM Six Months Ended Fiscal Years Ended -------------------------- -------------------------- Aug-01 Aug-01 Aug-00 Feb-01 Feb-00 ------------- -------------------------- -------------------------- Revenue $ 18,377 $ 9,021 $ 9,692 $ 19,048 $ 19,313 COGS 11,255 5,527 5,877 11,605 11,574 ------------ ---------- ---------- ---------- ----------- Gross Profit 7,122 3,494 3,815 7,443 7,739 Selling, General & Administrative 7,142 3,240 2,553 6,455 6,619 Research & Development - - - - - Other Operating 245 114 101 232 189 ------------ ---------- ---------- ---------- ----------- Operating Income (265) 140 1,161 756 931 Interest Expense, net (424) (312) (269) (381) (336) Other, net - - - - - ------------ ---------- ---------- ---------- ----------- Pre-tax Income 159 452 1,430 1,137 1,267 Taxes 61 176 588 473 253 ------------ ---------- ---------- ---------- ----------- After-tax Income 98 276 842 664 1,014 Minority Interest - - - - - Equity in Affiliates - - - - - ------------ ---------- ---------- ---------- ----------- Normalized Net Income 98 276 842 664 1,014 Preferred Dividends - - - - - ------------ ---------- ---------- ---------- ----------- Normalized Net Income to Common $ 98 $ 276 $ 842 $ 664 $ 1,014 ============ ========== ========== ========== =========== EBIT $ (265) $ 140 $ 1,161 $ 756 $ 931 Depreciation & Amortization $ 245 $ 114 $ 101 $ 232 $ 189 EBITDA $ (20) $ 254 $ 1,262 $ 988 $ 1,120 CAPEX $ 69 $ 51 $ 132 $ 150 $ 262 EBITDA CAPEX $ (89) $ 203 $ 1,130 $ 838 $ 858 GAAP Operating Cash Flow $ 2,171 $ 1,456 $ (399) $ 316 $ 1,437 - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Special Item Reconciliation: Pre-tax Special Items Unusual Items $ - $ - $ - $ - $ - Accounting Changes $ - $ - $ - $ - $ - Discontinued Operations $ - $ - $ (31) $ (31) $ (357) Extraordinary Items $ - $ - $ - $ - $ 941 Total $ - $ - $ (31) $ (31) $ 584 Total After-tax Special Items $ - $ - $ - $ - $ - Tax Provision on Special Items $ - $ - $ (31) $ (31) $ 584 Reported Taxes $ 61 $ 176 $ 557 $ 442 $ 837 Reported Net Income $ 98 $ 276 $ 842 $ 664 $ 1,014 - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Basic Reported Weighted Avg Shares Out (000's) - - 5,214 5,257 Basic Normalized EPS na na na $ 0.13 $ 0.19 Basic Reported EPS na na na $ 0.13 $ 0.19 Diluted Reported Weighted Avg Shares Out (000's) - - 5,235 5,388 Diluted Normalized EPS na na na $ 0.13 $ 0.19 Diluted Reported EPS na na na $ 0.13 $ 0.19 - --------------------------------------------------------------------------------------------------------------- - --------------------------------------------------------------------------------------------------------------- Profitability Ratios (as % of Revenue) - --------------------------------------------------------------------------------------------------------------- Core Gross Profit 38.8% 38.7% 39.4% 39.1% 40.1% S,G & A 38.9% 35.9% 26.3% 33.9% 34.3% Operating Income -1.4% 1.6% 12.0% 4.0% 4.8% Pre-Tax 0.9% 5.0% 14.8% 6.0% 6.6% EBIT -1.4% 1.6% 12.0% 4.0% 4.8% EBITDA -0.1% 2.8% 13.0% 5.2% 5.8% Normalized Net Income 0.5% 3.1% 8.7% 3.5% 5.3% Reported Net Income 0.5% 3.1% 8.7% 3.5% 5.3% - --------------------------------------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Balance Sheet Data - -------------------------------------------------------------------------------- ($ in thousands, except per share) As of As of --------------------------- 31-Aug-01 Feb-01 Feb-00 ------------- --------------------------- Cash & Equivalents $ 3,170 $ 1,799 $ 1,906 Marketable Securities - - - ------------ ------------------------ Total Cash & Mkt Securities 3,170 1,799 1,906 Accounts Receivable 2,043 3,568 3,293 Inventory 2,375 2,352 2,359 Other Current Assets 582 455 890 ------------ ------------------------ Total Current Assets 8,170 8,174 8,448 PPE, net 423 473 529 Intangibles, net 219 232 258 Investments - - Other Assets 7,344 7,311 8,086 ------------ ------------------------ Total Assets $ 16,156 $ 16,190 $ 17,321 ============ ======================== Accounts Payable $ 286 $ 597 $ 1,111 Accrued Expenses 563 403 1,349 Short Term Debt 86 86 104 Short Term Capital Leases - - - Other Current Liabilities 167 167 218 ------------ ------------------------ Total Current Liabilities 1,102 1,253 2,782 Other LT Liabilities 320 417 453 Long Term Debt 194 236 330 Long Term Capital Leases - - - Minority Interests - - - Pref Stock (Liq Value) - - - ------------ ------------------------ Total Liabilities & Pref Stock 1,616 1,906 3,565 ------------ ------------------------ Common Equity 14,540 14,284 13,756 ------------ ------------------------ Total Liabilities & Equity $ 16,156 $ 16,190 $ 17,321 ============ ======================== Common Shares Outstanding (000's) 5,828 5,822 5,822 Cash Value per share $ 0.54 $ 0.31 $ 0.33 Book Value per share $ 2.49 $ 2.45 $ 2.36 Tangible Book Value per share $ 2.46 $ 2.41 $ 2.32 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Effectiveness and Efficiency - -------------------------------------------------------------------------------- A/R Turnover 6.55x 5.55x 5.86x Inventory Turnover 4.76x 4.93x 4.91x Asset Turnover 1.14x 1.14x 1.12x Days Sales Outstanding 55.7 65.7 62.2 Days Inventory 76.6 74.1 74.4 Outstanding Days Payable Outstanding 8.6 17.0 22.1 Return on Avg Assets 0.6% 4.0% na Return on Avg Common Equity 0.7% 4.7% na - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Financial Strength - -------------------------------------------------------------------------------- Current Ratio 7.41 6.52 3.04 Quick Ratio 5.26 4.65 2.19 Total Debt $ 280 $ 322 $ 434 Net Debt $ (2,890) $ (1,477) $ (1,472) Total Capitalization $ 14,820 $ 14,606 $ 14,190 Total Debt/Total Capitalization 1.9% 2.2% 3.1% Net Debt/Total Capitalization -19.5% -10.1% -10.4% Total Debt/EBITDA na 0.33x 0.39x EBITDA/Interest Expense na na na EBITDA-CAPEX/Interest Expense na na na - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Market Information - -------------------------------------------------------------------------------- As of Date 9-Oct-01 Exchange OTC BB Stock Price $ 0.78 52 Week High $ 1.94 52 Week Low $ 0.57 Avg. Daily Volume (000's) 7 Beta 0.47 Shares Outstanding (000's) 5,828 Total Outstanding Warrants & Options (000's) - Float (000's) 2,700 Market Cap $ 4,545.8 Enterprise Value (EV) $ 1,655.8 Institutional % Owned 1.00% Number of Institutions 8 - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Valuation Ratios - -------------------------------------------------------------------------------- Multiple of --------------------------- Market Cap EV --------------------------- Latest Twelve Months Revenue 0.25x 0.09x EBIT na na EBITDA na na Normalized Net Income 46.39x 16.90x Basic Normalized EPS na Projected Dec-01 Mean Revenue na na Dec-01 Mean Revenue na na Dec-01 Mean EPS na na Dec-02 Mean EPS na na Most Recent Filing Assets 0.28x 0.10x Common Equity 0.31x 0.11x Tangible Common Equity 0.32x 0.12x - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Mean Consensus Estimates - -------------------------------------------------------------------------------- Year Ending # Ests Revenue EPS - -------------------------------------------------------------------------------- December-01 - $ - $ - December-02 - $ - $ - LT Growth - na na - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Period Growth Rates - -------------------------------------------------------------------------------- Six Months Ended Fiscal Years Ended Aug-01 Feb-01 ----------------- ----------------------- Revenue -6.9% -1.4% EBIT -87.9% -18.8% EBITDA -79.9% -11.8% - -------------------------------------------------------------------------------- - -------------------------------------------------------------------------------- Notes FY00 & FY01 discontinued operation are losses from Company owned franchises. FY00 extraordinary item is legal settlement. - -------------------------------------------------------------------------------- Sources: Multex, Yahoo Finance, and Hoovers BCT International, Inc. Comparable Transaction Analysis [LOGO] CAPITALINK Smart Investment Banking Comparable Transaction Analysis - Implied Value - BCT International ($ in thousands) LTM LTM May 01 LTM Aug 01 Revenue EBITDA EBITDA --------- ---------- ---------- BCT International $ 18,377 $ 388 $ (20) - ------------------------------------------------------------------------------------ Comparable Companies Multiples High 1.4x 13.8x 13.8x Mean 0.7 8.9 8.9 Median 0.7 8.7 8.7 Low 0.2 5.3 5.3 Implied Range of Enterprise Value High $ 25,060 $ 5,341 na Mean 13,747 3,461 na Median 13,541 3,364 na Low 3,121 2,060 na Implied Range of Market Value (1) High $ 30,770 $ 11,051 na Mean 19,457 9,171 na Median 19,251 9,074 na Low 8,831 7,770 na Implied Range of Market Value Per Share (2) High $ 5.27 $ 1.89 na Mean 3.33 1.57 na Median 3.29 1.55 na Low 1.51 1.33 na - --------------------------------------------------------------------------------------- - ------------------------------------ (1) Assumes Net Debt of ($5,710) as of Aug 31, 2001 [See Company DCF Analysis for calculation]. (2) Assumes 5,843 shares outstanding. [See Company DCF Analysis for calculation.] Sources of information: SEC Edgar filings, Multex, Inc., Bloomberg, LP, Commodity Systems, Inc., and/or Hoovers, Inc. Comparable Transaction Analysis - BCT International ($ in millions) TTM MRQ ----------------- ------------------------- Announced Closing Net Tangible Enterprise Date Date Acquiror Target/Transaction Description Revenue EBITDA Total Assets Equity Value (1) - --------- ------- --------------- ------------------------------- -------- ------ ------------ ------------ ---------- 31-May-01 31-May-01 Troy Group, Inc Extended Systems of Idaho 10.60 na 3.30 2.70 1.80 (NASD: TROY) Printing Solutions Business 27-Jun-00 27-Jun-00 ImageX.com Howard Press Limited (NASD: IMGX) Partnership 29.10 2.50 13.80 na 19.30 Provides Commercial Printing Services 25-Feb-00 25-Feb-00 Workflow ALF Graphics 8.00 na na na 4.50 Management Provides Commercial Printing (NASD: WORK) Services 14-Jul-99 14-Jul-99 Cunningham Inte MVP Graphics 7.10 0.47 2.62 0.35 6.47 Graphics Provides Commercial Printing (NASD: CGII) Services 23-Apr-99 1-Jul-99 Disc Graphics Contemporary Color Graphics 7.50 0.84 2.70 na 7.50 (SC: DSGR) Supplier of Sheet-Fed Printing Services 3-Jun-99 3-Jun-99 Workflow Graphic Management Corp 30.00 na na na 14.00 Management Provides Commercial Printing (NASD: WORK) Services 23-Mar-99 23-Mar-99 Master Graphics Columbia Graphics 28.50 2.50 11.10 1.70 21.00 Inc Provides Commercial Printing (NASD: MAGR) Services 11-Mar-99 14-Apr-99 Merrill Corp Daniels Printing 66.76 6.10 19.33 2.49 57.30 (NASD: MRLL) Provides Commercial Printing Services 17-Feb-99 17-Feb-99 Cunningham Boston Towne Press 4.40 1.13 2.48 1.63 6.00 Graphics Inte Provides Commercial Printing (NASD: CGII) Services Price Paid as Enterprise Value as Multiple of Multiple of -------------------------------- Announced Closing Total Net Tangible Date Date Acquiror Target/Transaction Description Revenue EBITDA Total Assets Price Paid Equity - --------- ------- --------------- ------------------------------- ------- ------ ------------ ---------- ------------- 31-May-01 31-May-01 Troy Group, Inc Extended Systems of Idaho 0.2 na 0.5x 1.80 0.7x (NASD: TROY) Printing Solutions Business 27-Jun-00 27-Jun-00 ImageX.com Howard Press Limited (NASD: IMGX) Partnership 0.7 7.7 1.4 19.30 na Provides Commercial Printing Services 25-Feb-00 25-Feb-00 Workflow ALF Graphics 0.6 na na 4.50 na Management Provides Commercial Printing (NASD: WORK) Services 14-Jul-99 14-Jul-99 Cunningham Inte MVP Graphics 0.9 13.8 2.5 4.80 13.7 Graphics Provides Commercial Printing (NASD: CGII) Services 23-Apr-99 1-Jul-99 Disc Graphics Contemporary Color Graphics 1.0 8.9 2.8 6.10 na (SC: DSGR) Supplier of Sheet-Fed Printing Services 3-Jun-99 3-Jun-99 Workflow Graphic Management Corp 0.5 na na 14.00 na Management Provides Commercial Printing (NASD: WORK) Services 23-Mar-99 23-Mar-99 Master Graphics Columbia Graphics 0.7 8.4 1.9 20.80 12.2 Inc Provides Commercial Printing (NASD: MAGR) Services 11-Mar-99 14-Apr-99 Merrill Corp Daniels Printing 0.9 9.4 3.0 44.00 17.7 (NASD: MRLL) Provides Commercial Printing Services 17-Feb-99 17-Feb-99 Cunningham Boston Towne Press 1.4 5.3 2.4 5.60 3.4 Graphics Inte Provides Commercial Printing (NASD: CGII) Services ---------------------------------------------------------------------------- High 1.4x 13.8x 3.0x 17.7x Mean 0.7 8.9 2.1 9.5 Median 0.7 8.7 2.4 12.2 Low 0.2 5.3 0.5 0.7 ---------------------------------------------------------------------------- ________________________________________________________________________________ (1) Enterprise Value equals Market Value plus total debt, preferred stock, and minority interests, less cash. Sources of information: Bloomberg, SEC Edgar Filings, World M&A Network, Done Deals, BizComps, Multex, Inc., Mergerstat, Thomson Financial & Company Press BCT International, Inc. Discounted Cash Flow Analysis CAPITALINK Smart Investment Banking Detailed Profit and Loss - Management Case ($ in thousands) Actual Projected -------------------------------------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 ---------------- ------------------------- 2000 2001 2001 2002 2002 2003 2004 -------------------------- ------- ------------------------- Revenues Royalty Income $ 5,394 $ 5,267 $ 2,614 $ 2,543 $ 5,157 $ 4,877 $ 4,829 Pelican Paper Sales 13,881 13,424 6,385 6,144 12,529 11,693 10,913 Franchise Sales 27 46 22 18 40 40 40 AMOS & Orderprinting. com & O 952 311 139 130 269 282 297 -------------------------- ------- ------------------------- Total $ 20,25 $19,048 $ 9,160 $ 8,835 $17,995 $ 16,893 $ 16,079 Cost of Goods Sold Cost of Sales Paper 11,574 11,605 5,527 5,394 10,921 10,193 9,513 -------------------------- ------- ------------------------- Gross Margin $ 8,680 $ 7,443 $ 3,633 $ 3,441 $ 7,074 $ 6,700 6,566 Less Operating Expenses Salaries and Employee Benefits 2,787 1,660 1,367 3,027 2,740 2,822 General and Administrative Expenses 574 235 335 570 599 616 IT Programming Costs 669 258 199 457 550 550 Occupancy Costs 204 93 89 182 187 193 Travel and Entertainment 375 177 193 370 389 396 Professional Fees 236 251 328 579 200 206 Bad Debt Expense 1,452 450 450 900 900 900 Management Incentive 125 100 100 200 250 250 Net Loss Company Plants 31 16 68 84 120 75 -------------------------- ------- ------------------------- Total 6619 6453 $ 3240 3129 6369 5934 6009 EBITDA $ 2,061 $ 990 393 $ 312 $ 705 $ 766 $ 557 Actual Projected ------------------------------------------------------ FY ended 6 Mths FY ended February 28/29 Sep - Feb February 28/29 ------------------- ----------------------- 2000 2001 2002 2002 2003 2004 ------------------- --------- ------ ---------------- Growth Assumptions Royalty Income -2.4% -2.7% -2.1% -5.4% -1.0% Pelican Paper Sales -3.3% -3.8% -6.7% -6.7% -6.7% Franchise Sales 70.4% -18.2% -13.0% 0.0% 0.0% AMOS & Orderprinting .com & Other -67.3% -6.5% -13.5% 5.0% 5.0% Total ------------------- --------- ------------------------ - 6.0% 53.6% - 5.5% -6.1% -4.8% Cost of Paper Sales Margin 16.6% 13.6% 12.2% 12.8% 12.8% 12.8% Gross Margin 42.9% 39.1% 38.9% 39.3% 39.7% 40.8% Salaries and Employee Benefits -17.7% 8.6% -9.5% 3.0% General and Administrative Expenses 42.6 -0.7% 5.0% 3.0% IT Programming Costs -22.9% -31.7% 20.4% 0.0% Occupancy Costs -4.3% -10.8% 3.0% 3.0% Travel and Entertainment 9.0% -1.3% 5.0% 2.0% Professional Fees 30.7% 145.3% -65.5% 3.0% Bad Debt Expense 0.0% -38.0% 0.0% 0.0% Management Incentive 0.0% 60.0% 25.0% 0.0% Net Loss Company Plants 325.0% 171.0% 42.9% -37.5% ------------------- --------- ------------------------ -2.5% -3.4% -1.3% -6.8% 1.3% EBITDA % 10.2% 5.2% 3.5% 3.9% 4.5% 3.5% ________________________________________________________________________________ Sources of information: Company Financials, Projections and Management. Discounted Cash Flow Analysis - Management Case ($ in thousands) Terminal Value - Revenue Multiple Free Cash Flows Actual Projected ---------------------------- ------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 ----------------- -------------------- 2000 2001 2001 2002 2003 2004 ---------------------------- ------------------------------- Revenue $ 20,254 $ 19,048 $ 9,160 $ 8,835 $ 16,893 $ 16,079 Cost of Sales 11,574 11,605 5,527 5,394 10,193 9,513 ---------------------------- ------------------------------- Gross Margin 8,680 7,443 3,633 3,441 6,700 6,566 Operating Expenses 6,619 6,455 3,240 3,129 5,934 6,009 ---------------------------- ------------------------------- EBITDA 2,061 988 393 312 766 557 less: Deprec. & Amort. 189 232 114 137 220 220 ---------------------------- ------------------------------- EBIT 1,872 756 279 175 546 337 Income Taxes 837 442 176 69 216 133 ---------------------------- ------------------------------- After-tax Income before Interest 1,035 314 103 106 330 204 Add: Deprec. & Amort. 189 232 114 137 220 220 Add: (Used) Sourced by Net Wkg Cap. 1,365 (1,505) 1,374 (659) 262 237 Less: Capital Expenditures 262 150 51 99 250 150 ---------------------------- ------------------------------- Free Cash Flows $ 2,327 $(1,109) $ 1,540 $ (515) $ 562 $ 511 ============================ =============================== Estimated Range of Enterprise Values Discount Terminal Revenue Multiple ---------------------------------------------------------- Rate 0.10x 0.20x 0.30x 0.40x 0.50x 0.60x ----------------------------------------------------------------------- 16.0% $ 1,488 $ 2,639 $ 3,791 $ 4,942 $ 6,094 $ 7,245 18.5% $ 1,407 $ 2,505 $ 3,602 $ 4,700 $ 5,797 $ 6,895 ------------------ 21.0% $ 1,332 $ 2,379 $ 3,426 $ 4,473 $ 5,520 $ 6,567 23.5% $ 1,261 $ 2,261 $ 3,261 $ 4,261 $ 5,261 $ 6,261 ------------------ 26.0% $ 1,195 $ 2,151 $ 3,106 $ 4,062 $ 5,018 $ 5,974 28.5% $ 1,132 $ 2,047 $ 2,962 $ 3,876 $ 4,791 $ 5,705 -------- Average of Box $ 3,855 -------- Estimated Range of Equity Values Discount Terminal Revenue Multiple ---------------------------------------------------------- Rate 0.10x 0.20x 0.30x 0.40x 0.50x 0.60x ----------------------------------------------------------------------- 16.0% $ 7,198 $ 8,349 $ 9,501 $ 10,652 $ 11,804 $ 12,955 18.5% $ 7,117 $ 8,215 $ 9,312 $ 10,410 $ 11,507 $ 12,605 ------------------ 21.0% $ 7,042 $ 8,089 $ 9,136 $ 10,183 $ 11,230 $ 12,277 23.5% $ 6,971 $ 7,971 $ 8,971 $ 9,971 $ 10,971 $ 11,971 ------------------ 26.0% $ 6,905 $ 7,861 $ 8,816 $ 9,772 $ 10,728 $ 11,684 28.5% $ 6,842 $ 7,757 $ 8,672 $ 9,586 $ 10,501 $ 11,415 -------- Average of Box $ 9,565 -------- --------------------------------- Terminal Value - Revenue Multiple --------------------------------- Terminal Values Terminal Revenue Multiple --------------------------------------------------------------- 0.10x 0.20x 0.30x 0.40x 0.50x 0.60x --------------------------------------------------------------- Revenue Terminal Value $ 1,608 $ 3,216 $ 4,824 $ 6,432 $ 8,039 $ 9,647 =============================================================== Discounted Terminal Values as Percentage of Enterprise Values Discount Terminal Revenue Multiple ---------------------------------------------------------- Rate 0.10x 0.20x 0.30x 0.40x 0.50x 0.60x ----------------------------------------------------------------------- 16.0% 77.4% 87.2% 91.1% 93.2% 94.5% 95.4% 18.5% 78.0% 87.6% 91.4% 93.4% 94.7% 95.5% ------------------ 21.0% 78.6% 88.0% 91.7% 93.6% 94.8% 95.7% 23.5% 79.3% 88.5% 92.0% 93.9% 95.0% 95.8% ------------------ 26.0% 80.0% 88.9% 92.3% 94.1% 95.2% 96.0% 28.5% 80.8% 89.4% 92.6% 94.4% 95.5% 96.2% -------- Average of Box 92.8% -------- Estimated Range of Equity Values per Share Discount Terminal Revenue Multiple ---------------------------------------------------------- Rate 0.10x 0.20x 0.30x 0.40x 0.50x 0.60x ----------------------------------------------------------------------- 16.0% $ 1.23 $ 1.43 $ 1.63 $ 1.82 $ 2.02 $ 2.22 18.5% $ 1.22 $ 1.41 $ 1.59 $ 1.78 $ 1.97 $ 2.16 ------------------ 21.0% $ 1.21 $ 1.38 $ 1.56 $ 1.74 $ 1.92 $ 2.10 23.5% $ 1.19 $ 1.36 $ 1.54 $ 1.71 $ 1.88 $ 2.05 ------------------ 26.0% $ 1.18 $ 1.35 $ 1.51 $ 1.67 $ 1.84 $ 2.00 28.5% $ 1.17 $ 1.33 $ 1.48 $ 1.64 $ 1.80 $ 1.95 -------- Average of Box $ 1.64 -------- ________________________________________________________________________________ All Discounted amounts have been calculated utilizing a mid-year convention. Sources of information: Company Financials, Projections and Management. Discounted Cash Flow Analysis - Management Case ($ in thousands) Free Cash Flows Actual Projected -------------------------------- ------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 -------------------- -------------------- 2000 2001 2001 2002 2003 2004 -------------------------------- ------------------------------- Revenue $ 20,254 $ 19,048 $ 9,160 $ 8,835 $ 16,893 $ 16,079 Cost of Sales 11,574 11,605 5,527 5,394 10,193 9,513 ------------------------------ ------------------------------ Gross Margin 8,680 7,443 3,633 3,441 6,700 6,566 Operating Expenses 6,619 6,455 3,240 3,129 5,934 6,009 ------------------------------ ------------------------------ EBITDA 2,061 988 393 312 766 557 less: Deprec. & Amort. 189 232 114 137 220 220 ------------------------------ ------------------------------ EBIT 1,872 756 279 175 546 337 Income Taxes 837 442 176 69 216 133 ------------------------------ ------------------------------ After-tax Income before Interest 1,035 314 103 106 330 204 Add: Deprec. & Amort. 189 232 114 137 220 220 Add: (Used) Sourced by Net Wkg Cap. 1,365 (1,505) 1,374 (659) 262 237 Less: Capital Expenditures 262 150 51 99 250 150 ------------------------------ ------------------------------ Free Cash Flows $ 2,327 $ (1,109) $ 1,540 $ (515) $ 562 $ 511 ============================== ============================== Estimated Range of Enterprise Values Discount Terminal EBITDA Multiple ----------------------------------------------------------- Rate 2.00x 2.50x 3.00x 3.25x 3.75x 4.25x ------------------------------------------------------------------------- 16.0% $ 1,135 $ 1,334 $ 1,534 $ 1,633 $ 1,833 $ 2,032 18.5% $ 1,070 $ 1,261 $ 1,451 $ 1,546 $ 1,736 $ 1,926 ----------------- 21.0% $ 1,010 $ 1,192 $ 1,373 $ 1,464 $ 1,645 $ 1,827 23.5% $ 954 $ 1,127 $ 1,301 $ 1,387 $ 1,561 $ 1,734 ----------------- 26.0% $ 901 $ 1,067 $ 1,233 $ 1,315 $ 1,481 $ 1,647 28.5% $ 852 $ 1,010 $ 1,169 $ 1,248 $ 1,406 $ 1,565 ------- Average of Box $ 1,381 ------- Estimated Range of Equity Values Discount Terminal EBITDA Multiple ----------------------------------------------------------- Rate 2.00x 2.50x 3.00x 3.25x 3.75x 4.25x ------------------------------------------------------------------------- 16.0% $ 6,845 $ 7,044 $ 7,244 $ 7,343 $ 7,543 $ 7,742 18.5% $ 6,780 $ 6,971 $ 7,161 $ 7,256 $ 7,446 $ 7,636 ----------------- 21.0% $ 6,720 $ 6,902 $ 7,083 $ 7,174 $ 7,355 $ 7,537 23.5% $ 6,664 $ 6,837 $ 7,011 $ 7,097 $ 7,271 $ 7,444 ----------------- 26.0% $ 6,611 $ 6,777 $ 6,943 $ 7,025 $ 7,191 $ 7,357 28.5% $ 6,562 $ 6,720 $ 6,879 $ 6,958 $ 7,116 $ 7,275 ------- Average of Box $ 7,091 ------- Terminal Value - EBITDA Multiple Terminal Values Terminal EBITDA Multiple ------------------------------------------------------------- 2.00x 2.50x 3.00x 3.25x 3.75x 4.25x ------------------------------------------------------------- EBITDA Terminal Value $ 1,114 $ 1,393 $ 1,672 $ 1,811 $ 2,090 $ 2,368 ============================================================= Discounted Terminal Values as Percentage of Enterprise Values Discount Terminal EBITDA Multiple -------------------------------------------------------- Rate 2.00x 2.50x 3.00x 3.25x 3.75x 4.25x ---------------------------------------------------------------------- 16.0% 98.2% 74.8% 78.1% 79.4% 81.6% 83.4% 18.5% 71.1% 75.4% 78.6% 80.0% 82.2% 83.9% -------------- 21.0% 71.8% 76.1% 79.3% 80.6% 82.7% 84.4% 23.5% 72.6% 76.9% 79.9% 81.2% 83.3% 84.9% -------------- 26.0% 73.5% 77.6% 80.6% 81.9% 83.9% 85.5% 28.5% 74.4% 78.4% 81.4% 82.5% 84.5% 86.1% ------ Average of Box 80.2% ------ Estimated Range of Equity Values per Share Discount Terminal EBITDA Multiple -------------------------------------------------------- Rate 2.00x 2.50x 3.00x 3.25x 3.75x 4.25x ---------------------------------------------------------------------- 16.0% $ 1.17 $ 1.21 $ 1.24 $ 1.26 $ 1.29 $ 1.33 18.5% $ 1.16 $ 1.19 $ 1.23 $ 1.24 $ 1.27 $ 1.31 ---------------- 21.0% $ 1.15 $ 1.18 $ 1.21 $ 1.23 $ 1.26 $ 1.29 23.5% $ 1.14 $ 1.17 $ 1.20 $ 1.21 $ 1.24 $ 1.27 ---------------- 26.0% $ 1.13 $ 1.16 $ 1.19 $ 1.20 $ 1.23 $ 1.26 28.5% $ 1.12 $ 1.15 $ 1.18 $ 1.19 $ 1.22 $ 1.25 ------ Average of Box $ 1.21 ------ ________________________________________________________________________________ All Discounted amounts have been calculated utilizing a mid-year convention. Sources of information: Company Financials, Projections and Management. Discounted Cash Flow Analysis - Management Case ($ in thousands) Free Cash Flows Actual Projected -------------------------------- ------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 -------------------- -------------------- 2000 2001 2001 2002 2003 2004 -------------------------------- ------------------------------- Revenue $ 20,254 $ 19,048 $ 9,160 $ 8,835 $ 16,893 $ 16,079 Cost of Sales 11,574 11,605 5,527 5,394 10,193 9,513 ------------------------------- ------------------------------- Gross Margin 8,680 7,443 3,633 3,441 6,700 6,566 Operating Expenses 6,619 6,455 3,240 3,129 5,934 6,009 ------------------------------- ------------------------------- EBITDA 2,061 988 393 312 766 557 less: Deprec. & Amort. 189 232 114 137 220 220 ------------------------------- ------------------------------- EBIT 1,872 756 279 175 546 337 Income Taxes 837 442 176 69 216 133 ------------------------------- ------------------------------- After-tax Income before Interest 1,035 314 103 106 330 204 Add: Deprec. & Amort. 189 232 114 137 220 220 Add: (Used) Sourced by Net Wkg Cap. 1,365 (1,505) 1,374 (659) 262 237 Less: Capital Expenditures 262 150 51 99 250 150 ------------------------------- ------------------------------- Free Cash Flows $ 2,327 $ (1,109) $ 1,540 $ (515) $ 562 $ 511 =============================== =============================== Estimated Range of Enterprise Values Discount Terminal Perpetual Growth Rates ---------------------------------------------------------- Rate 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% ------------------------------------------------------------------------ 16.0% $ 3,795 $ 3,877 $ 3,962 $ 4,052 $ 4,145 $ 4,243 18.5% $ 3,038 $ 3,092 $ 3,149 $ 3,207 $ 3,268 $ 3,331 ----------------- 21.0% $ 2,505 $ 2,543 $ 2,583 $ 2,624 $ 2,666 $ 2,710 23.5% $ 2,109 $ 2,138 $ 2,167 $ 2,197 $ 2,228 $ 2,260 ----------------- 26.0% $ 1,805 $ 1,827 $ 1,849 $ 1,872 $ 1,895 $ 1,919 28.5% $ 1,563 $ 1,580 $ 1,598 $ 1,616 $ 1,634 $ 1,653 ------- Average of Box $ 2,393 ------- Estimated Range of Equity Values Discount Terminal Perpetual Growth Rates ---------------------------------------------------------- Rate 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% ------------------------------------------------------------------------ 16.0% $ 9,505 $ 9,587 $ 9,672 $ 9,762 $ 9,855 $ 9,953 18.5% $ 8,748 $ 8,802 $ 8,859 $ 8,917 $ 8,978 $ 9,041 ----------------- 21.0% $ 8,215 $ 8,253 $ 8,293 $ 8,334 $ 8,376 $ 8,420 23.5% $ 7,819 $ 7,848 $ 7,877 $ 7,907 $ 7,938 $ 7,970 ----------------- 26.0% $ 7,515 $ 7,537 $ 7,559 $ 7,582 $ 7,605 $ 7,629 28.5% $ 7,273 $ 7,290 $ 7,308 $ 7,326 $ 7,344 $ 7,363 ------- Average of Box $ 8,103 ------- ------------------------------------- Terminal Value - Perpetual Growth ------------------------------------- Terminal Values Terminal Perpetual Growth Rates ----------------------------------------------------------- ----------------------------------------------------------- 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% ----------------------------------------------------------- EBITDA $ 579 $ 581 $ 582 $ 584 $ 585 $ 586 less: Deprec. & Amort. - - - - - - ----------------------------------------------------------- EBIT 579 581 582 584 585 586 Income Taxes - - - - - - ----------------------------------------------------------- After-tax Income before Int. 579 581 582 584 585 586 Add: Deprec. & Amort. - - - - - - Add: (Used) from by Net WC - - - - - - Less: Capital Expenditures - - - - - - ----------------------------------------------------------- Free Cash Flows $ 579 $ 581 $ 582 $ 584 $ 585 $ 586 =========================================================== Disc Rate Perpetual Growth Terminal Values ------------------------------------------------------------------------ 16.0% $ 4,829 $ 4,944 $ 5,063 $ 5,188 $ 5,319 $ 5,455 18.5% $ 3,997 $ 4,076 $ 4,159 $ 4,245 $ 4,334 $ 4,426 21.0% $ 3,409 $ 3,468 $ 3,529 $ 3,592 $ 3,657 $ 3,724 23.5% $ 2,972 $ 3,018 $ 3,065 $ 3,113 $ 3,163 $ 3,214 26.0% $ 2,634 $ 2,671 $ 2,708 $ 2,747 $ 2,786 $ 2,826 28.5% $ 2,365 $ 2,395 $ 2,426 $ 2,458 $ 2,490 $ 2,522 Discounted Terminal Values as Percentage of Enterprise Values Discount Terminal Perpetual Growth Rates ------------------------------------------------------- Rate 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% --------------------------------------------------------------------- 16.0% 91.1% 91.3% 91.5% 91.7% 91.9% 92.1% 18.5% 89.8% 90.0% 90.2% 90.3% 90.5% 90.7% --------------- 21.0% 88.6% 88.8% 89.0% 89.2% 89.3% 89.5% 23.5% 87.6% 87.8% 88.0% 88.1% 88.3% 88.5% --------------- 26.0% 86.8% 86.9% 87.1% 87.2% 87.4% 87.6% 28.5% 86.1% 86.2% 86.4% 86.5% 86.7% 86.8% ------ Average of Box 88.6% ------ Estimated Range of Equity Values per Share Discount Terminal Perpetual Growth Rates ------------------------------------------------------- Rate 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% --------------------------------------------------------------------- 16.0% $ 1.63 $ 1.64 $ 1.66 $ 1.67 $ 1.69 $ 1.70 18.5% $ 1.50 $ 1.51 $ 1.52 $ 1.53 $ 1.54 $ 1.55 --------------- 21.0% $ 1.41 $ 1.41 $ 1.42 $ 1.43 $ 1.43 $ 1.44 23.5% $ 1.34 $ 1.34 $ 1.35 $ 1.35 $ 1.36 $ 1.36 --------------- 26.0% $ 1.29 $ 1.29 $ 1.29 $ 1.30 $ 1.30 $ 1.31 28.5% $ 1.24 $ 1.25 $ 1.25 $ 1.25 $ 1.26 $ 1.26 ------ Average of Box $ 1.39 ------ ________________________________________________________________________________ All Discounted amounts have been calculated utilizing a mid-year convention. Sources of information: Company Financials, Projections and Management. Long Term and Equity Assumptions - Management Case ($ in thousands) Actual Projected --------------------------------- ------------------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 Terminal -------------------- -------------------- 2000 2001 2001 2002 2003 2004 Period --------------------------------- ------------------------------------------- Existing Fixed Assets Gross Assets $ 1,633 $ 1,707 $ 1,759 $ 1,759 $ 1,759 $ 1,759 Less Acc Deprec 1,104 1,234 1,335 1,439 1,563 1,657 --------------------------------- -------------------------------- Net Book Value $ 529 $ 473 $ 424 $ 320 $ 196 $ 102 ================================= ================================ Deprec Expense $ 163 $ 206 $ 101 $ 104 $ 124 $ 94 $ - ================================= =========================================== New Fixed Assets Capex $ 99 $ 250 $ 150 $ - Total Capex =========================================== Years Deprec Expense 5 $ 20 $ 70 $ 100 $ - =========================================== Net Book Value Mach & Equip $ 99 $ 349 $ 499 Gross Assets $ 99 $ 349 $ 499 Less Acc Deprec 20 90 190 -------------------------------- Net Book Value $ 79 $ 259 $ 309 ================================ Total Assets Gross Assets $ 1,633 $ 1,707 $ 1,759 $ 1,858 $ 2,108 $ 2,258 Less Acc Deprec 1,104 1,234 1,335 1,459 1,653 1,847 --------------------------------- -------------------------------- Net Book Value $ 529 $ 473 $ 424 $ 399 $ 455 $ 411 =================================================================== Deprec Expense $ 163 $ 206 $ 101 $ 124 $ 194 $ 194 $ - ================================= =========================================== Intangibles Gross Intangible $ 474 $ 474 $ 474 $ 474 $ 474 $ 474 Less Acc Amort 216 242 255 268 294 320 --------------------------------- -------------------------------- Net Book Value $ 258 $ 232 $ 219 $ 206 $ 180 $ 154 ================================= ================================ Amort Expense $ 26 $ 26 $ 13 $ 13 $ 26 $ 26 $ - ================================= =========================================== Deprec & Amort Expense $ 189 $ 232 $ 114 $ 137 $ 220 $ 220 $ - ================================= =========================================== Actual as of 8/31/01 --------- Equity Value Assumptions Debt & Other Obligations Interest Bearing Debt $ 322 Contingent Liabilities 550 Other - --------- 872 --------- Less Cash Cash on Hand 3,170 Assumed cash from exercise of options 16 Assumed value of notes 3,396 --------- 6,582 --------- Net Debt $ (5,710) ========= Common Stock Equivalents (in thousands) Common Stock Outstanding 5,828 Stock issued re Other - --------- 5,828 --------- Exercise $ Options in the money: Plan 1 $ 1.09 15 Plan 2 $ - - --------- 15 --------- Total Common Stock Equivalents 5,843 ========= Sources of information: Company Financials, Projections and Management. Operating and Working Capital Assumptions - Management Case ($ in thousands) Actual Projected ---------------------------- ----------------------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 Terminal --------------- ------------------ 2000 2001 2001 2002 2003 2004 Period ---------------------------- ----------------------------------------------- Growth Statistics and Assumptions Revenue na -6.0% na -53.6% 91.2% -4.8% Cost of Sales na 0.3% na -53.5% 89.0% -6.7% Operating Expenses na -2.5% na -51.5% 89.7% 1.3% EBITDA na -52.1% na -68.4% 145.4% -27.2% EBIT na -59.6% na -76.9% 211.8% -38.2% After-tax Income before Interest na -69.7% na -66.3% 211.8% -38.2% Profitability Gross Margin 42.9% 39.1% 39.7% 38.9% 39.7% 40.8% EBITDA 10.2% 5.2% 4.3% 3.5% 4.5% 3.5% EBIT 9.2% 4.0% 3.0% 2.0% 3.2% 2.1% After-tax Income before Interest 5.1% 1.6% 1.1% 1.2% 2.0% 1.3% Income Tax Expense and Assumptions Statutory Tax Rate 39.5% 39.5% 39.5% Effective Tax Rate 44.7% 58.5% 63.1% 39.5% 39.5% 39.5% 0.0% Current Period Tax $ 837 $ 442 $ 176 $ 69 $ 216 $ 133 NOL Usage - - - - - - ----------------------------- ------------------------------- Income Tax Expense $ 837 $ 442 $ 176 $ 69 $ 216 $ 133 ============================= =============================== Ending NOL Balance $ - $ - $ - $ - =========== =============================== Actual Projected ---------------------------- ----------------------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 Terminal --------------- ------------------ 2000 2001 2001 2002 2003 2004 Period ---------------------------- ----------------------------------------------- Non-Cash Working Capital Assumptions Accounts Receivable (AR) AR Days Outstanding 59 68 na 60 60 60 % of Sales 16.3% 18.7% na 16.4% 16.4% 16.4% Inventory Days Inventory Outstanding 74 74 na 74 74 74 % Cost of Sales 20.4% 20.3% na 20.3% 20.3% 20.3% Prepayments % of Direct and Op Costs 2.2% 0.7% na 0.7% 0.7% 0.7% Accounts Payable (AP) AP Days Outstanding 22 12 na 12 12 12 % of Direct and Op Costs 6.1% 3.3% na 3.3% 3.3% 3.3% Accrued Expenses & Other % of Direct and Op Costs 8.6% 3.2% na 3.2% 3.2% 3.2% Changes in Non-Cash Net Working Capital Accounts Receivables $3,293 $ 3,568 $ 2,043 $ 2,958 $2,777 $ 2,643 Inventory 2,359 2,352 2,375 2,214 2,066 1,929 Prepayments 408 134 111 121 113 109 Accounts Payables 1,111 597 286 568 530 510 Accrued Expenses & Other 1,567 570 730 553 516 497 ------------------------------- --------------------------------- Non-Cash Net WC $3,382 $ 4,887 $ 3,513 $ 4,172 $3,910 $ 3,673 =============================== ================================= % of EBITDA 164.1% 494.6% 893.9% 1337.2% 510.6% 659.2% =============================== ================================= Cash Flow (Used) Sourced by Non-Cash Net Wrkg Capi $1,365 $(1,505) $ 1,374 $ (659) $ 262 $ 237 $ - =============================== =============================================== - -------------------------------------------------------------------------------- Sources of information: Company Financials, Projections and Management. Detailed Profit and Loss - Revised Case 1 (No Growth) ($ in thousands) Actual Projected ----------------------------------- ---------------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 ------------------ ------------------------ 2000 2001 2001 2002 2002 2003 2004 ----------------------------------- ------------- ------------------------ Revenues Royalty Income $ 5,394 $ 5,267 $ 2,614 $ 2,543 $ 5,157 $ 5,157 $ 5,157 Pelican Paper Sales 13,881 13,424 6,385 6,144 12,529 12,529 12,529 Franchise Sales 27 46 22 18 40 40 40 AMOS & Orderprinting.com & O 952 311 139 130 269 282 297 ------------------------------------ ---------------------------------------- Total $ 20,254 $19,048 $ 9,160 $ 8,835 $17,995 $18,008 $18,023 Cost of Goods Sold Cost of Sales Paper 11,574 11,605 5,527 5,394 10,921 10,921 10,921 ----------------------------------- ---------------------------------------- Gross Margin $ 8,680 $ 7,443 $ 3,633 $ 3,441 $ 7,074 $ 7,087 $ 7,102 Less Operating Expenses Salaries and Employee Benefits 2,787 1,660 1,367 3,027 2,740 2,822 General and Administrative Expenses 574 235 335 570 599 616 IT Programming Costs 669 258 199 457 550 550 Occupancy Costs 204 93 89 182 187 193 Travel and Entertainment 375 177 193 370 389 396 Professional Fees 236 251 328 579 200 206 Bad Debt Expense 1,452 450 450 900 900 900 Management Incentive 125 100 100 200 250 250 Net Loss Company Plants 31 16 68 84 120 75 ---------------------------------- ---------------------------------------- Total 6619 6453 3240 3129 6369 5934 6009 EBITDA $ 2,061 $ 990 $ 393 $ 312 $ 705 $ 1,153 $ 1,093 Actual Projected ------------------------ ------------------------------------------- FY ended 6 Mths FY ended February 28/29 Sep - Feb February 28/29 ------------------------ ------------------------ 2000 2001 2002 2002 2003 2004 ------------------------ --------- ------------------------ Growth Assumptions Royalty Income -2.4% -2.7% -2.1% 0.0% 0.0% Pelican Paper Sales -3.3% -3.8% -6.7% 0.0% 0.0% Franchise Sales 70.4% -18.2% -13.0% 0.0% 0.0% AMOS & Orderprinting.com & Other -67.3% -6.5% -13.5% 5.0% 5.0% ------------------------ ------------------------------------------- Total -6.0% -53.6% -5.5% 0.1% 0.1% Cost of Paper Sales Margin 16.6% 13.6% 12.2% 12.8% 12.8% 12.8% Gross Margin 42.9% 39.1% 38.9% 39.3% 39.4% 39.4% Salaries and Employee Benefits -17.7% 8.6% -9.5% 3.0% General and Administrative Expenses 42.6% -0.7% 5.0% 3.0% IT Programming Costs -22.9% -31.7% 20.4% 0.0% Occupancy Costs -4.3% -10.8% 3.0% 3.0% Travel and Entertainment 9.0% -1.3% 5.0% 2.0% Professional Fees 30.7% 145.3% -65.5% 3.0% Bad Debt Expense 0.0% -38.0% 0.0% 0.0% Management Incentive 0.0% 60.0% 25.0% 0.0% Net Loss Company Plants 325.0% 171.0% 42.9% -37.5% ------------------------ ------------------------------------------- -2.5% -3.4% -1.3% 89.7% 1.3% EBITDA % 10.2% 5.2% 3.5% 3.9% 6.4% 6.1% ________________________________________________________________________________ Sources of information: Company Financials, Projections and Management. Discounted Cash Flow Analysis - Revised Case 1 (No Growth) ($ in thousands) Free Cash Flows Actual Projected -------------------------------- ------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 -------------------- -------------------- 2000 2001 2001 2002 2003 2004 ------------------------------------------------------------------ Revenue $ 20,254 $ 19,048 $ 9,160 $ 8,835 $ 18,008 $ 18,023 Cost of Sales 11,574 11,605 5,527 5,394 10,921 10,921 ------------------------------- ------------------------------ Gross Margin 8,680 7,443 3,633 3,441 7,087 7,102 Operating Expenses 6,619 6,455 3,240 3,129 5,934 6,009 ------------------------------- ------------------------------ EBITDA 2,061 988 393 312 1,153 1,093 less: Deprec. & Amort. 189 232 114 137 220 220 ------------------------------- ------------------------------ EBIT 1,872 756 279 175 933 873 Income Taxes 837 442 176 69 369 345 ------------------------------- ------------------------------ After-tax Income before Interest 1,035 314 103 106 564 528 Add: Deprec. & Amort. 189 232 114 137 220 220 Add: (Used) Sourced by Net Wkg Cap. 1,365 (1,505) 1,374 (659) (27) 1 Less: Capital Expenditures 262 150 51 99 250 150 ------------------------------- ------------------------------ Free Cash Flows $ 2,327 $ (1,109) $ 1,540 $ (515) $ 507 $ 599 =============================== ============================== Estimated Range of Enterprise Values Discount Terminal Revenue Multiple ----------------------------------------------------------- Rate 0.10x 0.20x 0.30x 0.40x 0.50x 0.60x ------------------------------------------------------------------------- 16.0% $ 1,645 $ 2,935 $ 4,226 $ 5,516 $ 6,807 $ 8,098 18.5% $ 1,556 $ 2,786 $ 4,016 $ 5,246 $ 6,476 $ 7,706 ----------------- 21.0% $ 1,472 $ 2,646 $ 3,820 $ 4,993 $ 6,167 $ 7,341 23.5% $ 1,395 $ 2,515 $ 3,636 $ 4,757 $ 5,878 $ 6,999 ----------------- 26.0% $ 1,321 $ 2,393 $ 3,464 $ 4,536 $ 5,607 $ 6,679 28.5% $ 1,253 $ 2,278 $ 3,303 $ 4,328 $ 5,353 $ 6,379 ------- Average of Box $ 4,302 ------- Estimated Range of Equity Values Discount Terminal Revenue Multiple ----------------------------------------------------------- Rate 0.10x 0.20x 0.30x 0.40x 0.50x 0.60x ------------------------------------------------------------------------- 16.0% $ 7,355 $ 8,645 $ 9,936 $ 11,226 $ 12,517 $ 13,808 18.5% $ 7,266 $ 8,496 $ 9,726 $ 10,956 $ 12,186 $ 13,416 ------------------ 21.0% $ 7,182 $ 8,356 $ 9,530 $ 10,703 $ 11,877 $ 13,051 23.5% $ 7,105 $ 8,225 $ 9,346 $ 10,467 $ 11,588 $ 12,709 ------------------ 26.0% $ 7,031 $ 8,103 $ 9,174 $ 10,246 $ 11,317 $ 12,389 28.5% $ 6,963 $ 7,988 $ 9,013 $ 10,038 $ 11,063 $ 12,089 -------- Average of Box $ 10,012 -------- -------------------------------------- Terminal Value - Revenue Multiple -------------------------------------- Terminal Values Terminal Revenue Multiple ------------------------------------------------------------- 0.10x 0.20x 0.30x 0.40x 0.50x 0.60x ------------------------------------------------------------- Revenue Terminal Value $ 1,802 $ 3,605 $ 5,407 $ 7,209 $ 9,011 $ 10,814 ============================================================= Discounted Terminal Values as Percentage of Enterprise Values Discount Terminal Revenue Multiple ---------------------------------------------------------- Rate 0.10x 0.20x 0.30x 0.40x 0.50x 0.60x ------------------------------------------------------------------------ 16.0% 78.5% 87.9% 91.6% 93.6% 94.8% 95.6% 18.5% 79.1% 88.3% 91.9% 93.8% 95.0% 95.8% --------------- 21.0% 79.7% 88.7% 92.2% 94.0% 95.2% 95.9% 23.5% 80.4% 89.1% 92.5% 94.2% 95.3% 96.1% --------------- 26.0% 81.1% 89.6% 92.8% 94.5% 95.5% 96.3% 28.5% 81.8% 90.0% 93.1% 94.7% 95.7% 96.4% ------ Average of Box 93.2% ------ Estimated Range of Equity Values per Share Discount Terminal Revenue Multiple ---------------------------------------------------------- Rate 0.10x 0.20x 0.30x 0.40x 0.50x 0.60x ------------------------------------------------------------------------ 16.0% $ 1.26 $ 1.48 $ 1.70 $ 1.92 $ 2.14 $ 2.36 18.5% $ 1.24 $ 1.45 $ 1.66 $ 1.88 $ 2.09 $ 2.30 ---------------- 21.0% $ 1.23 $ 1.43 $ 1.63 $ 1.83 $ 2.03 $ 2.23 23.5% $ 1.22 $ 1.41 $ 1.60 $ 1.79 $ 1.98 $ 2.18 ---------------- 26.0% $ 1.20 $ 1.39 $ 1.57 $ 1.75 $ 1.94 $ 2.12 28.5% $ 1.19 $ 1.37 $ 1.54 $ 1.72 $ 1.89 $ 2.07 ------ Average of Box $ 1.71 ------ ________________________________________________________________________________ All Discounted amounts have been calculated utilizing a mid-year convention. Sources of information: Company Financials, Projections and Management. Discounted Cash Flow Analysis - Revised Case 1 (No Growth) ($ in thousands) Free Cash Flows Actual Projected -------------------------------- ------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 -------------------- -------------------- 2000 2001 2001 2002 2003 2004 ------------------------------------------------------------------ Revenue $20,254 $ 19,048 $ 9,160 $ 8,835 $18,008 $18,023 Cost of Sales 11,574 11,605 5,527 5,394 10,921 10,921 ------------------------------ ------------------------------- Gross Margin 8,680 7,443 3,633 3,441 7,087 7,102 Operating Expenses 6,619 6,455 3,240 3,129 5,934 6,009 ------------------------------ ------------------------------- EBITDA 2,061 988 393 312 1,153 1,093 less: Deprec. & Amort. 189 232 114 137 220 220 ------------------------------ ------------------------------- EBIT 1,872 756 279 175 933 873 Income Taxes 837 442 176 69 369 345 ------------------------------ ------------------------------- After-tax Income before Interest 1,035 314 103 106 564 528 Add: Deprec. & Amort. 189 232 114 137 220 220 Add: (Used) Sourced by Net Wkg Cap. 1,365 (1,505) 1,374 (659) (27) 1 Less: Capital Expenditures 262 150 51 99 250 150 ------------------------------ ------------------------------- Free Cash Flows $ 2,327 $ (1,109) $ 1,540 $ (515) $ 507 $ 599 ============================== =============================== Estimated Range of Enterprise Values Discount Terminal EBITDA Multiple ----------------------------------------------------------- Rate 2.00x 2.50x 3.00x 3.25x 3.75x 4.25x ------------------------------------------------------------------------- 16.0% $ 1,919 $ 2,310 $ 2,701 $ 2,897 $ 3,288 $ 3,679 18.5% $ 1,817 $ 2,190 $ 2,563 $ 2,749 $ 3,122 $ 3,495 ----------------- 21.0% $ 1,722 $ 2,078 $ 2,433 $ 2,611 $ 2,967 $ 3,323 23.5% $ 1,633 $ 1,972 $ 2,312 $ 2,482 $ 2,822 $ 3,162 ----------------- 26.0% $ 1,549 $ 1,874 $ 2,199 $ 2,361 $ 2,686 $ 3,011 28.5% $ 1,471 $ 1,781 $ 2,092 $ 2,248 $ 2,558 $ 2,869 ------- Average of Box $ 2,460 ------- Estimated Range of Equity Values Discount Terminal EBITDA Multiple ----------------------------------------------------------- Rate 2.00x 2.50x 3.00x 3.25x 3.75x 4.25x ------------------------------------------------------------------------- 16.0% $ 7,629 $ 8,020 $ 8,411 $ 8,607 $ 8,998 $ 9,389 18.5% $ 7,527 $ 7,900 $ 8,273 $ 8,459 $ 8,832 $ 9,205 ----------------- 21.0% $ 7,432 $ 7,788 $ 8,143 $ 8,321 $ 8,677 $ 9,033 23.5% $ 7,343 $ 7,682 $ 8,022 $ 8,192 $ 8,532 $ 8,872 ----------------- 26.0% $ 7,259 $ 7,584 $ 7,909 $ 8,071 $ 8,396 $ 8,721 28.5% $ 7,181 $ 7,491 $ 7,802 $ 7,958 $ 8,268 $ 8,579 ------- Average of Box $ 8,170 ------- ----------------------------------------- Terminal Value - EBITDA Multiple ----------------------------------------- Terminal Values Terminal EBITDA Multiple ---------------------------------------------------------- 2.00x 2.50x 3.00x 3.25x 3.75x 4.25x ---------------------------------------------------------- EBITDA Terminal Value $ 2,185 $ 2,731 $ 3,278 $ 3,551 $ 4,097 $ 4,643 ========================================================== Discounted Terminal Values as Percentage of Enterprise Values Discount Terminal EBITDA Multiple --------------------------------------------------------- Rate 2.00x 2.50x 3.00x 3.25x 3.75x 4.25x ----------------------------------------------------------------------- 16.0% 113.9% 84.7% 86.9% 87.8% 89.2% 90.4% 18.5% 82.1% 85.1% 87.3% 88.2% 89.6% 90.7% --------------- 21.0% 82.6% 85.6% 87.7% 88.6% 89.9% 91.0% 23.5% 83.2% 86.1% 88.2% 89.0% 90.3% 91.3% --------------- 26.0% 83.9% 86.7% 88.6% 89.4% 90.7% 91.7% 28.5% 84.5% 87.2% 89.1% 89.9% 91.1% 92.1% ------ Average of Box 88.4% ------ Estimated Range of Equity Values per Share Discount Terminal EBITDA Multiple --------------------------------------------------------- Rate 2.00x 2.50x 3.00x 3.25x 3.75x 4.25x ----------------------------------------------------------------------- 16.0% $ 1.31 $ 1.37 $ 1.44 $ 1.47 $ 1.54 $ 1.61 18.5% $ 1.29 $ 1.35 $ 1.42 $ 1.45 $ 1.51 $ 1.58 ---------------- 21.0% $ 1.27 $ 1.33 $ 1.39 $ 1.42 $ 1.49 $ 1.55 23.5% $ 1.26 $ 1.31 $ 1.37 $ 1.40 $ 1.46 $ 1.52 ---------------- 26.0% $ 1.24 $ 1.30 $ 1.35 $ 1.38 $ 1.44 $ 1.49 28.5% $ 1.23 $ 1.28 $ 1.34 $ 1.36 $ 1.42 $ 1.47 ------ Average of Box $ 1.40 ------ ________________________________________________________________________________ All Discounted amounts have been calculated utilizing a mid-year convention. Sources of information: Company Financials, Projections and Management. Discounted Cash Flow Analysis - Revised Case 1 (No Growth) ($ in thousands) Free Cash Flows Actual Projected -------------------------------- ------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 -------------------- -------------------- 2000 2001 2001 2002 2003 2004 ------------------------------------------------------------------ Revenue $ 20,254 $ 19,048 $ 9,160 $ 8,835 $ 18,008 $ 18,023 Cost of Sales 11,574 11,605 5,527 5,394 10,921 10,921 ------------------------------ ------------------------------ Gross Margin 8,680 7,443 3,633 3,441 7,087 7,102 Operating Expenses 6,619 6,455 3,240 3,129 5,934 6,009 ------------------------------ ------------------------------ EBITDA 2,061 988 393 312 1,153 1,093 less: Deprec. & Amort. 189 232 114 137 220 220 ------------------------------ ------------------------------ EBIT 1,872 756 279 175 933 873 Income Taxes 837 442 176 69 369 345 ------------------------------ ------------------------------ After-tax Income before Interest 1,035 314 103 106 564 528 Add: Deprec. & Amort. 189 232 114 137 220 220 Add: (Used) Sourced by Net Wkg Cap. 1,365 (1,505) 1,374 (659) (27) 1 Less: Capital Expenditures 262 150 51 99 250 150 ------------------------------ ------------------------------ Free Cash Flows $ 2,327 $ (1,109) $ 1,540 $ (515) $ 507 $ 599 ============================== ============================== Estimated Range of Enterprise Values Discount Terminal Perpetual Growth Rates ------------------------------------------------------------ Rate 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% -------------------------------------------------------------------------- 16.0% $ 7,135 $ 7,296 $ 7,463 $ 7,639 $ 7,822 $ 8,014 18.5% $ 5,674 $ 5,781 $ 5,892 $ 6,007 $ 6,126 $ 6,249 ----------------- 21.0% $ 4,651 $ 4,727 $ 4,805 $ 4,885 $ 4,968 $ 5,053 23.5% $ 3,898 $ 3,954 $ 4,011 $ 4,070 $ 4,130 $ 4,192 ----------------- 26.0% $ 3,321 $ 3,363 $ 3,407 $ 3,452 $ 3,498 $ 3,545 28.5% $ 2,866 $ 2,899 $ 2,934 $ 2,969 $ 3,004 $ 3,041 ------- Average of Box $ 4,443 ------- Estimated Range of Equity Values Discount Terminal Perpetual Growth Rates ---------------------------------------------------------------- Rate 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% ------------------------------------------------------------------------------ 16.0% $ 12,845 $ 13,006 $ 13,173 $ 13,349 $ 13,532 $ 13,724 18.5% $ 11,384 $ 11,491 $ 11,602 $ 11,717 $ 11,836 $ 11,959 ------------------- 21.0% $ 10,361 $ 10,437 $ 10,515 $ 10,595 $ 10,678 $ 10,763 23.5% $ 9,608 $ 9,664 $ 9,721 $ 9,780 $ 9,840 $ 9,902 ------------------- 26.0% $ 9,031 $ 9,073 $ 9,117 $ 9,162 $ 9,208 $ 9,255 28.5% $ 8,576 $ 8,609 $ 8,644 $ 8,679 $ 8,714 $ 8,751 -------- Average of Box $ 10,153 -------- ------------------------------------ Terminal Value - Perpetual Growth ------------------------------------ Terminal Values Terminal Perpetual Growth Rates ----------------------------------------------------------- ----------------------------------------------------------- 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% ----------------------------------------------------------- EBITDA $ 1,136 $ 1,139 $ 1,142 $ 1,144 $ 1,147 $ 1,150 less: Deprec. & Amort. - - - - - - ----------------------------------------------------------- EBIT 1,136 1,139 1,142 1,144 1,147 1,150 Income Taxes - - - - - - ----------------------------------------------------------- After-tax Income before Int. 1,136 1,139 1,142 1,144 1,147 1,150 Add: Deprec. & Amort. - - - - - - Add: (Used) from by Net WC - - - - - - Less: Capital Expenditures - - - - - - ----------------------------------------------------------- Free Cash Flows $ 1,136 $ 1,139 $ 1,142 $ 1,144 $ 1,147 $ 1,150 =========================================================== Disc Rate Perpetual Growth Terminal Values ------------------------------------------------------------------------------ 16.0% $ 9,469 $ 9,694 $ 9,928 $ 10,173 $ 10,429 $ 10,697 18.5% $ 7,836 $ 7,993 $ 8,155 $ 8,323 $ 8,498 $ 8,679 21.0% $ 6,684 $ 6,800 $ 6,920 $ 7,043 $ 7,170 $ 7,301 23.5% $ 5,827 $ 5,917 $ 6,009 $ 6,104 $ 6,201 $ 6,301 26.0% $ 5,165 $ 5,237 $ 5,310 $ 5,386 $ 5,463 $ 5,542 28.5% $ 4,638 $ 4,697 $ 4,757 $ 4,819 $ 4,882 $ 4,946 Discounted Terminal Values as Percentage of Enterprise Values Discount Terminal Perpetual Growth Rates --------------------------------------------------------- Rate 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% ----------------------------------------------------------------------- 16.0% 95.0% 95.1% 95.3% 95.4% 95.5% 95.6% 18.5% 94.3% 94.4% 94.5% 94.6% 94.7% 94.8% ---------------- 21.0% 93.6% 93.7% 93.8% 93.9% 94.0% 94.1% 23.5% 93.0% 93.1% 93.2% 93.3% 93.4% 93.5% ---------------- 26.0% 92.5% 92.6% 92.7% 92.8% 92.9% 92.9% 28.5% 92.1% 92.1% 92.2% 92.3% 92.4% 92.5% ------ Average of Box 93.5% ------ Estimated Range of Equity Values per Share Discount Terminal Perpetual Growth Rates ------------------------------------------------------ Rate 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% -------------------------------------------------------------------- 16.0% $ 2.20 $ 2.23 $ 2.25 $ 2.28 $ 2.32 $ 2.35 18.5% $ 1.95 $ 1.97 $ 1.99 $ 2.01 $ 2.03 $ 2.05 --------------- 21.0% $ 1.77 $ 1.79 $ 1.80 $ 1.81 $ 1.83 $ 1.84 23.5% $ 1.64 $ 1.65 $ 1.66 $ 1.67 $ 1.68 $ 1.69 --------------- 26.0% $ 1.55 $ 1.55 $ 1.56 $ 1.57 $ 1.58 $ 1.58 28.5% $ 1.47 $ 1.47 $ 1.48 $ 1.49 $ 1.49 $ 1.50 ------ Average of Box $ 1.74 ------ ________________________________________________________________________________ All Discounted amounts have been calculated utilizing a mid-year convention. Sources of information: Company Financials, Projections and Management. Long Term and Equity Assumptions - Revised Case 1 (No Growth) ($ in thousands) Actual Projected ------------------------------- ---------------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 Terminal ------------------ ------------------ 2000 2001 2001 2002 2003 2004 Period ------------------------------- ---------------------------------------- Existing Fixed Assets Gross Assets $ 1,633 $ 1,707 $ 1,759 $ 1,759 $ 1,759 $ 1,759 Less Acc Deprec 1,104 1,234 1,335 1,439 1,563 1,657 ------------------------------- ------------------------------ Net Book Value $ 529 $ 473 $ 424 $ 320 $ 196 $ 102 =============================== ============================== Deprec Expense $ 163 $ 206 $ 101 $ 104 $ 124 $ 94 $ - =============================== ======================================== New Fixed Assets Capex $ 99 $ 250 $ 150 $ - ======================================== Total Capex Years Deprec Expense 5 $ 20 $ 70 $ 100 $ - ======================================== Net Book Value Mach & Equip $ 99 $ 349 $ 499 Gross Assets $ 99 $ 349 $ 499 Less Acc Deprec 20 90 190 ------------------------------ Net Book Value $ 79 $ 259 $ 309 ============================== Total Assets Gross Assets $ 1,633 $ 1,707 $ 1,759 $ 1,858 $ 2,108 $ 2,258 Less Acc Deprec 1,104 1,234 1,335 1,459 1,653 1,847 ------------------------------- ------------------------------ Net Book Value $ 529 $ 473 $ 424 $ 399 $ 455 $ 411 =============================== ============================== Deprec Expense $ 163 $ 206 $ 101 $ 124 $ 194 $ 194 $ - =============================== ======================================== Intangibles Gross Intangible $ 474 $ 474 $ 474 $ 474 $ 474 $ 474 Less Acc Amort 216 242 255 268 294 320 ------------------------------- ------------------------------- Net Book Value $ 258 $ 232 $ 219 $ 206 $ 180 $ 154 Amort Expense $ 26 $ 26 $ 13 $ 13 $ 26 $ 26 $ - =============================== ======================================== Deprec & Amort Expense $ 189 $ 232 $ 114 $ 137 $ 220 $ 220 $ - =============================== ======================================== Actual as of 8/31/01 --------- Equity Value Assumptions Debt & Other Obligations Interest Bearing Debt $ 322 Contingent Liabilities 550 Other - --------- 872 --------- Less Cash Cash on Hand 3,170 Assumed cash from exercise of options 16 Assumed value of notes 3,396 --------- 6,582 --------- Net Debt $ (5,710) ========= Common Stock Equivalents (in thousands) Common Stock Outstanding 5,828 Stock issued re Other - --------- 5,828 --------- Exercise $ Options in the money: Plan 1 $ 1.09 15 Plan 2 $ - - --------- 15 --------- Total Common Stock Equivalents 5,843 ========= Sources of information: Company Financials, Projections and Management. Operating and Working Capital Assumptions - Revised Case 1 (No Growth) ($ in thousands) Actual Projected -------------------------- -------------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 Terminal -------------- ---------------- 2000 2001 2001 2002 2003 2004 Period ------------------------------------------------------------------ Growth Statistics and Assumptions Revenue na -6.0% na -53.6% 103.8% 0.1% Cost of Sales na 0.3% na -53.5% 102.5% 0.0% Operating Expenses na -2.5% na -51.5% 89.7% 1.3% EBITDA na -52.1% na -68.4% 269.5% -5.2% EBIT na -59.6% na -76.9% 433.1% -6.5% After-tax Income before Interest na -69.7% na -66.3% 433.1% -6.5% Profitability Gross Margin 42.9% 39.1% 39.7% 38.9% 39.4% 39.4% EBITDA 10.2% 5.2% 4.3% 3.5% 6.4% 6.1% EBIT 9.2% 4.0% 3.0% 2.0% 5.2% 4.8% After-tax Income before Interest 5.1% 1.6% 1.1% 1.2% 3.1% 2.9% Income Tax Expense and Assumptions Statutory Tax Rate 39.5% 39.5% 39.5% Effective Tax Rate 44.7% 58.5% 63.1% 39.5% 39.5% 39.5% 0.0% Current Period Tax $ 837 $ 442 $ 176 $ 69 $ 369 $ 345 NOL Usage - - - - - ------------------------ -------------------------- Income Tax Expense $ 837 $ 442 $ 176 $ 69 $ 369 $ 345 ======================== ========================== Ending NOL Balance $ - $ - $ - $ - ====== ========================== Actual Projected ------------------------------------------------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 Terminal ----------------- ---------------- 2000 2001 2001 2002 2003 2004 Period ------------------------------------------------------------------------- Non-Cash Working Capital Assumptions Accounts Receivable (AR) AR Days Outstanding 59 68 na 60 60 60 % of Sales 16.3% 18.7% na 16.4% 16.4% 16.4% Inventory Days Inventory Outstanding 74 74 na 74 74 74 % Cost of Sales 20.4% 20.3% na 20.3% 20.3% 20.3% Prepayments % of Direct and Op Costs 2.2% 0.7% na 0.7% 0.7% 0.7% Accounts Payable (AP) AP Days Outstanding 22 12 na 12 12 12 % of Direct and Op Costs 6.1% 3.3% na 3.3% 3.3% 3.3% Accrued Expenses & Other % of Direct and Op Costs 8.6% 3.2% na 3.2% 3.2% 3.2% Changes in Non-Cash Net Working Capital Accounts Receivables $ 3,293 $ 3,568 $ 2,043 $ 2,958 $ 2,960 $ 2,963 Inventory 2,359 2,352 2,375 2,214 2,214 2,214 Prepayments 408 134 111 121 118 119 Accounts Payables 1,111 597 286 568 554 557 Accrued Expenses & Other 1,567 570 730 553 539 542 ---------------------------------------------------------------- Non-Cash Net WC $ 3,382 $ 4,887 $ 3,513 $ 4,172 $ 4,199 $ 4,198 ================================================================ % of EBITDA 164.1% 494.6% 893.9% 1337.2% 364.2% 384.2% ================================================================ Cash Flow (Used) Sourced by Non-Cash Net Wrkg Capi $ 1,365 $ (1,505) $ 1,374 $ (659) $ (27) $ 1 $ - ======================================================================== ________________________________________________________________________________ Sources of information: Company Financials, Projections and Management. Detailed Profit and Loss - Revised Case 2 (2% Growth) ($ in thousands) Actual Projected ----------------------------- ----------------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 ------------------ ------------------------------ 2000 2001 2001 2002 2002 2003 2004 ------------------ -------- --------- ------------------------------ Revenues Royalty Income $ 5,394 $ 5,267 $2,614 $2,543 $ 5,157 $ 5,260 $ 5,365 Pelican Paper Sales 13,881 13,424 6,385 6,144 12,529 12,780 13,035 Franchise Sales 27 46 22 18 40 41 42 AMOS & Orderprinting.com & O 952 311 139 130 269 282 297 --------------------------- ------ ----------------------------- Total $20,254 $19,048 $9,160 $8,835 $17,995 $18,363 $18,739 Cost of Goods Sold Cost of Sales Paper 11,574 11,605 5,527 5,394 10,921 11,139 11,362 --------------------------- ------ ----------------------------- Gross Margin $ 8,680 $ 7,443 $3,633 $3,441 $ 7,074 $ 7,224 $ 7,376 Less Operating Expenses Salaries and Employee Benefits 2,787 1,660 1,367 3,027 2,740 2,822 General and Administrative Expenses 574 235 335 570 599 616 IT Programming Costs 669 258 199 457 550 550 Occupancy Costs 204 93 89 182 187 193 Travel and Entertainment 375 177 193 370 389 396 Professional Fees 236 251 328 579 200 206 Bad Debt Expense 1,452 450 450 900 900 900 Management Incentive 125 100 100 200 250 250 Net Loss Company Plants 31 16 68 84 120 75 --------------------------- ------ ----------------------------- Total 6,619 6,453 3,240 3,129 6,369 5,934 6,009 EBITDA $ 2,061 $ 990 $ 393 $ 312 $ 705 $ 1,289 $ 1,367 Actual Projected ----------------- ------------------------------------------- FY ended 6 Mths FY ended February 28/29 Sep - Feb February 28/29 ----------------- ------------------------------ 2000 2001 2002 2002 2003 2004 ----------------- ---------- ------------------------------ Growth Assumptions Royalty Income -2.4% -2.7% -2.1% 2.0% 2.0% Pelican Paper Sales -3.3% -3.8% -6.7% 2.0% 2.0% Franchise Sales 70.4% -18.2% -13.0% 2.0% 2.0% AMOS & Orderprinting.com & Other -67.3% -6.5% -13.5% 5.0% 5.0% ----------------- -------- ------------------------------ Total -6.0% -53.6% -5.5% 2.0% 2.0% Cost of Paper Sales Margin 16.6% 13.6% 12.2% 12.8% 12.8% 12.8% Gross Margin 42.9% 39.1% 38.9% 39.3% 39.3% 39.4% Salaries and Employee -17.7% 8.6% -9.5% 3.0% Benefits General and Administrative 42.6% -0.7% 5.0% 3.0% Expenses IT Programming Costs -22.9% -31.7% 20.4% 0.0% Occupancy Costs -4.3% -10.8% 3.0% 3.0% Travel and Entertainment 9.0% -1.3% 5.0% 2.0% Professional Fees 30.7% 145.3% -65.5% 3.0% Bad Debt Expense 0.0% -38.0% 0.0% 0.0% Management Incentive 0.0% 60.0% 25.0% 0.0% Net Loss Company Plants 325.0% 171.0% 42.9% -37.5% ----------------- -------- ------------------------------ -2.5% -3.4% -1.3% 89.7% 1.3% EBITDA % 10.2% 5.2% 3.5% 3.9% 7.0% 7.3% - -------------------------------------------------------------------------------- Sources of information: Company Financials, Projections and Management. Discounted Cash Flow Analysis - Revised Case 2 (2% Growth) ($ in thousands) Free Cash Flows Actual Projected ---------------------------- ---------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 ----------------- ----------------- 2000 2001 2001 2002 2003 2004 ---------------------------- ---------------------------- Revenue $ 20,254 $ 19,048 $ 9,160 $ 8,835 $ 18,363 $ 18,739 Cost of Sales 11,574 11,605 5,527 5,394 11,139 11,362 ---------------------------- ---------------------------- Gross Margin 8,680 7,443 3,633 3,441 7,224 7,376 Operating Expenses 6,619 6,455 3,240 3,129 5,934 6,009 ---------------------------- ---------------------------- EBITDA 2,061 988 393 312 1,289 1,367 less: Deprec. & Amort. 189 232 114 137 220 220 ---------------------------- ---------------------------- EBIT 1,872 756 279 175 1,069 1,147 Income Taxes 837 442 176 69 422 453 ---------------------------- ---------------------------- After-tax Income before Interest 1,035 314 103 106 647 694 Add: Deprec. & Amort. 189 232 114 137 220 220 Add: (Used) Sourced by Net 1,365 (1,505) 1,374 (659) (118) (88) Wkg Cap. Less: Capital Expenditures 262 150 51 99 250 150 ---------------------------- ---------------------------- Free Cash Flows $ 2,327 $ (1,109) $ 1,540 $ (515) $ 499 $ 676 ============================ ============================ Estimated Range of Enterprise Values Discount Terminal Revenue Multiple -------------------------------------------------------- Rate 0.10x 0.20x 0.30x 0.40x 0.50x 0.60x -------------------------------------------------------------------- 16.0% $ 1,744 $ 3,086 $ 4,428 $ 5,770 $ 7,112 $ 8,453 18.5% $ 1,650 $ 2,929 $ 4,208 $ 5,487 $ 6,766 $ 8,045 ------------------ 21.0% $ 1,563 $ 2,783 $ 4,003 $ 5,224 $ 6,444 $ 7,664 23.5% $ 1,480 $ 2,646 $ 3,811 $ 4,977 $ 6,142 $ 7,308 ------------------ 26.0% $ 1,404 $ 2,518 $ 3,632 $ 4,746 $ 5,860 $ 6,974 28.5% $ 1,331 $ 2,397 $ 3,463 $ 4,529 $ 5,595 $ 6,661 -------- Average of Box $ 4,504 -------- Estimated Range of Equity Values Discount Terminal Revenue Multiple ------------------------------------------------------ Rate 0.10x 0.20x 0.30x 0.40x 0.50x 0.60x ------------------------------------------------------------------- 16.0% $ 7,454 $ 8,796 $ 10,138 $ 11,480 $ 12,822 $ 14,163 18.5% $ 7,360 $ 8,639 $ 9,918 $ 11,197 $ 12,476 $ 13,755 ----------------- 21.0% $ 7,273 $ 8,493 $ 9,713 $ 10,934 $ 12,154 $ 13,374 23.5% $ 7,190 $ 8,356 $ 9,521 $ 10,687 $ 11,852 $ 13,018 ----------------- 26.0% $ 7,114 $ 8,228 $ 9,342 $ 10,456 $ 11,570 $ 12,684 28.5% $ 7,041 $ 8,107 $ 9,173 $ 10,239 $ 11,305 $ 12,371 -------- Average of Box $ 10,214 -------- --------------------------------- Terminal Value - Revenue Multiple --------------------------------- Terminal Values Terminal Revenue Multiple -------------------------------------------------------- 0.10x 0.20x 0.30x 0.40x 0.50x 0.60x -------------------------------------------------------- Revenue Terminal Value $ 1,874 $ 3,748 $ 5,622 $ 7,495 $ 9,369 $ 11,243 ======================================================== Discounted Terminal Values as Percentage of Enterprise Values Discount Terminal Revenue Multiple ------------------------------------------------------ Rate 0.10x 0.20x 0.30x 0.40x 0.50x 0.60x -------------------------------------------------------------------- 16.0% 76.9% 87.0% 90.9% 93.0% 94.3% 95.2% 18.5% 77.5% 87.3% 91.2% 93.2% 94.5% 95.4% -------------- 21.0% 78.1% 87.7% 91.5% 93.4% 94.7% 95.5% 23.5% 78.7% 88.1% 91.7% 93.7% 94.9% 95.7% -------------- 26.0% 79.4% 88.5% 92.0% 93.9% 95.1% 95.8% 28.5% 80.1% 88.9% 92.3% 94.1% 95.3% 96.0% ------- Average of Box 92.6% ------- Estimated Range of Equity Values per Share Discount Terminal Revenue Multiple ----------------------------------------------------------- Rate 0.10x 0.20x 0.30x 0.40x 0.50x 0.60x ----------------------------------------------------------------------- 16.0% $ 1.28 $ 1.51 $ 1.74 $ 1.96 $ 2.19 $ 2.42 18.5% $ 1.26 $ 1.48 $ 1.70 $ 1.92 $ 2.14 $ 2.35 ----------------- 21.0% $ 1.24 $ 1.45 $ 1.66 $ 1.87 $ 2.08 $ 2.29 23.5% $ 1.23 $ 1.43 $ 1.63 $ 1.83 $ 2.03 $ 2.23 ----------------- 26.0% $ 1.22 $ 1.41 $ 1.60 $ 1.79 $ 1.98 $ 2.17 28.5% $ 1.21 $ 1.39 $ 1.57 $ 1.75 $ 1.93 $ 2.12 --------- Average of Box $ 1.75 --------- ________________________________________________________________________________ All Discounted amounts have been calculated utilizing a mid-year convention. Sources of information: Company Financials, Projections and Management. Discounted Cash Flow Analysis - Revised Case 2 (2% Growth) ($ in thousands) Free Cash Flows Actual Projected -------------------------------- -------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 ------------------- ------------------- 2000 2001 2001 2002 2003 2004 --------------------------------- ------------------------------- Revenue $20,254 $ 19,048 $ 9,160 $ 8,835 $ 18,363 $ 18,739 Cost of Sales 11,574 11,605 5,527 5,394 11,139 11,362 --------------------------------- ------------------------------- Gross Margin 8,680 7,443 3,633 3,441 7,224 7,376 Operating Expenses 6,619 6,455 3,240 3,129 5,934 6,009 --------------------------------- ------------------------------- EBITDA 2,061 988 393 312 1,289 1,367 less: Deprec. & Amort. 189 232 114 137 220 220 --------------------------------- ------------------------------- EBIT 1,872 756 279 175 1,069 1,147 Income Taxes 837 442 176 69 422 453 --------------------------------- ------------------------------- After-tax Income before Interest 1,035 314 103 106 647 694 Add: Deprec. & Amort. 189 232 114 137 220 220 Add: (Used) Sourced by Net Wkg Cap. 1,365 (1,505) 1,374 (659) (118) (88) Less: Capital Expenditures 262 150 51 99 250 150 --------------------------------- ------------------------------- Free Cash Flows $ 2,327 $ (1,109) $ 1,540 $ (515) $ 499 $ 676 ================================= =============================== Estimated Range of Enterprise Values Discount Terminal EBITDA Multiple ---------------------------------------------------------------- Rate 2.00x 2.50x 3.00x 3.25x 3.75x 4.25x ----------------------------------------------------------------------------- 16.0% $ 2,361 $ 2,850 $ 3,340 $ 3,585 $ 4,074 $ 4,564 18.5% $ 2,238 $ 2,705 $ 3,171 $ 3,405 $ 3,871 $ 4,338 ---------------------- 21.0% $ 2,123 $ 2,569 $ 3,014 $ 3,237 $ 3,682 $ 4,127 23.5% $ 2,016 $ 2,441 $ 2,867 $ 3,079 $ 3,504 $ 3,930 ---------------------- 26.0% $ 1,915 $ 2,322 $ 2,728 $ 2,932 $ 3,338 $ 3,745 28.5% $ 1,821 $ 2,210 $ 2,599 $ 2,793 $ 3,182 $ 3,571 -------- Average of Box $ 3,049 -------- Estimated Range of Equity Values Discount Terminal EBITDA Multiple ---------------------------------------------------------------- Rate 2.00x 2.50x 3.00x 3.25x 3.75x 4.25x ----------------------------------------------------------------------------- 16.0% $ 8,071 $ 8,560 $ 9,050 $ 9,295 $ 9,784 $ 10,274 18.5% $ 7,948 $ 8,415 $ 8,881 $ 9,115 $ 9,581 $ 10,048 ---------------------- 21.0% $ 7,833 $ 8,279 $ 8,724 $ 8,947 $ 9,392 $ 9,837 23.5% $ 7,726 $ 8,151 $ 8,577 $ 8,789 $ 9,214 $ 9,640 ---------------------- 26.0% $ 7,625 $ 8,032 $ 8,438 $ 8,642 $ 9,048 $ 9,455 28.5% $ 7,531 $ 7,920 $ 8,309 $ 8,503 $ 8,892 $ 9,281 -------- Average of Box $ 8,759 -------- Terminal Value - EBITDA Multiple Terminal Values Terminal EBITDA Multiple ---------------------------------------------------------------- 2.00x 2.50x 3.00x 3.25x 3.75x 4.25x ---------------------------------------------------------------- EBITDA Terminal Value $ 2,735 $ 3,419 $ 4,102 $ 4,444 $ 5,128 $ 5,812 ================================================================ Discounted Terminal Values as Percentage of Enterprise Values Discount Terminal EBITDA Multiple ---------------------------------------------------------------- Rate 2.00x 2.50x 3.00x 3.25x 3.75x 4.25x ----------------------------------------------------------------------------- 16.0% 115.9% 85.9% 88.0% 88.8% 90.1% 91.2% 18.5% 83.4% 86.3% 88.3% 89.1% 90.4% 91.4% ---------------------- 21.0% 83.9% 86.7% 88.6% 89.4% 90.7% 91.7% 23.5% 84.4% 87.1% 89.0% 89.8% 91.0% 92.0% ---------------------- 26.0% 84.9% 87.5% 89.4% 90.1% 91.3% 92.3% 28.5% 85.4% 88.0% 89.8% 90.5% 91.7% 92.6% -------- Average of Box 89.2% -------- Estimated Range of Equity Values per Share Discount Terminal EBITDA Multiple ---------------------------------------------------------------- Rate 2.00x 2.50x 3.00x 3.25x 3.75x 4.25x ----------------------------------------------------------------------------- 16.0% $ 1.38 $ 1.47 $ 1.55 $ 1.59 $ 1.67 $ 1.76 18.5% $ 1.36 $ 1.44 $ 1.52 $ 1.56 $ 1.64 $ 1.72 ---------------------- 21.0% $ 1.34 $ 1.42 $ 1.49 $ 1.53 $ 1.61 $ 1.68 23.5% $ 1.32 $ 1.40 $ 1.47 $ 1.50 $ 1.58 $ 1.65 ---------------------- 26.0% $ 1.31 $ 1.37 $ 1.44 $ 1.48 $ 1.55 $ 1.62 28.5% $ 1.29 $ 1.36 $ 1.42 $ 1.46 $ 1.52 $ 1.59 -------- Average of Box $ 1.50 -------- - -------------------------------------------------------------------------------- All Discounted amounts have been calculated utilizing a mid-year convention. Sources of information: Company Financials, Projections and Management. Discounted Cash Flow Analysis - Revised Case 2 (2% Growth) ($ in thousands) Free Cash Flows Actual Projected ---------------------------- ---------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 ------------------ ------------------ 2000 2001 2001 2002 2003 2004 ---------------------------- ---------------------------- Revenue $ 20,254 $ 19,048 $ 9,160 $ 8,835 $ 18,363 $ 18,739 Cost of Sales 11,574 11,605 5,527 5,394 11,139 11,362 ---------------------------- ---------------------------- Gross Margin 8,680 7,443 3,633 3,441 7,224 7,376 Operating Expenses 6,619 6,455 3,240 3,129 5,934 6,009 ---------------------------- ---------------------------- EBITDA 2,061 988 393 312 1,289 1,367 less: Deprec. & Amort. 189 232 114 137 220 220 ---------------------------- ---------------------------- EBIT 1,872 756 279 175 1,069 1,147 Income Taxes 837 442 176 69 422 453 ---------------------------- ---------------------------- After-tax Income before Interest 1,035 314 103 106 647 694 Add: Deprec. & Amort. 189 232 114 137 220 220 Add: (Used) Sourced by Net Wkg Cap. 1,365 (1,505) 1,374 (659) (118) (88) Less: Capital Expenditures 262 150 51 99 250 150 ---------------------------- ---------------------------- Free Cash Flows $ 2,327 $ (1,109) $ 1,540 $ (515) $ 499 $ 676 ============================ ============================ Estimated Range of Enterprise Values Discount Terminal Perpetual Growth Rates ---------------------------------------------------------- Rate 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% -------------------------------------------------------------------- 16.0% $ 8,889 $ 9,090 $ 9,301 $ 9,520 $ 9,750 $ 9,990 18.5% $ 7,066 $ 7,200 $ 7,338 $ 7,482 $ 7,631 $ 7,785 -------------------- 21.0% $ 5,790 $ 5,885 $ 5,982 $ 6,083 $ 6,186 $ 6,293 23.5% $ 4,851 $ 4,921 $ 4,993 $ 5,066 $ 5,142 $ 5,220 -------------------- 26.0% $ 4,133 $ 4,186 $ 4,241 $ 4,297 $ 4,354 $ 4,413 28.5% $ 3,567 $ 3,609 $ 3,652 $ 3,696 $ 3,741 $ 3,787 ---------- Average of Box $ 5,531 ---------- Estimated Range of Equity Values Discount Terminal Perpetual Growth Rates ---------------------------------------------------------- Rate 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% -------------------------------------------------------------------- 16.0% $ 14,599 $ 14,800 $ 15,011 $ 15,230 $ 15,460 $ 15,700 18.5% $ 12,776 $ 12,910 $ 13,048 $ 13,192 $ 13,341 $ 13,495 -------------------- 21.0% $ 11,500 $ 11,595 $ 11,692 $ 11,793 $ 11,896 $ 12,003 23.5% $ 10,561 $ 10,631 $ 10,703 $ 10,776 $ 10,852 $ 10,930 -------------------- 26.0% $ 9,843 $ 9,896 $ 9,951 $ 10,007 $ 10,064 $ 10,123 28.5% $ 9,277 $ 9,319 $ 9,362 $ 9,406 $ 9,451 $ 9,497 ---------- Average of Box $ 11,241 ---------- ---------------------------------- Terminal Value - Perpetual Growth ---------------------------------- Terminal Values Terminal Perpetual Growth Rates ---------------------------------------------------------- ---------------------------------------------------------- 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% ---------------------------------------------------------- EBITDA $ 1,422 $ 1,426 $ 1,429 $ 1,432 $ 1,436 $ 1,439 less: Deprec. & Amort. - - - - - - ---------------------------------------------------------- EBIT 1,422 1,426 1,429 1,432 1,436 1,439 Income Taxes - - - - - - ---------------------------------------------------------- After-tax Income before Int. 1,422 1,426 1,429 1,432 1,436 1,439 Add: Deprec. & Amort. - - - - - - Add: (Used) from by Net WC - - - - - - Less: Capital Expenditures - - - - - - ---------------------------------------------------------- Free Cash Flows $ 1,422 $ 1,426 $ 1,429 $ 1,432 $ 1,436 $ 1,439 ========================================================== Disc Rate Perpetual Growth Terminal Values ------------------------------------------------------------------------ 16.0% $ 11,852 $ 12,133 $ 12,426 $ 12,733 $ 13,053 $ 13,389 18.5% $ 9,808 $ 10,004 $ 10,207 $ 10,418 $ 10,636 $ 10,862 21.0% $ 8,366 $ 8,511 $ 8,661 $ 8,815 $ 8,974 $ 9,138 23.5% $ 7,293 $ 7,406 $ 7,521 $ 7,640 $ 7,761 $ 7,886 26.0% $ 6,464 $ 6,555 $ 6,647 $ 6,741 $ 6,837 $ 6,936 28.5% $ 5,805 $ 5,879 $ 5,954 $ 6,031 $ 6,110 $ 6,190 Discounted Terminal Values as Percentage of Enterprise Values Discount Terminal Perpetual Growth Rates ---------------------------------------------------------- Rate 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% -------------------------------------------------------------------- 16.0% 95.5% 95.6% 95.7% 95.8% 95.9% 96.0% 18.5% 94.7% 94.8% 94.9% 95.0% 95.1% 95.2% -------------------- 21.0% 94.1% 94.2% 94.3% 94.4% 94.5% 94.6% 23.5% 93.5% 93.6% 93.7% 93.8% 93.9% 94.0% -------------------- 26.0% 93.0% 93.1% 93.2% 93.3% 93.4% 93.4% 28.5% 92.6% 92.6% 92.7% 92.8% 92.9% 93.0% --------- Average of Box 94.0% --------- Estimated Range of Equity Values per Share Discount Terminal Perpetual Growth Rates -------------------------------------------------------------------- Rate 4.00% 4.25% 4.50% 4.75% 5.00% 5.25% ---------------------------------------------------------- 16.0% $ 2.50 $ 2.53 $ 2.57 $ 2.61 $ 2.65 $ 2.69 18.5% $ 2.19 $ 2.21 $ 2.23 $ 2.26 $ 2.28 $ 2.31 -------------------- 21.0% $ 1.97 $ 1.98 $ 2.00 $ 2.02 $ 2.04 $ 2.05 23.5% $ 1.81 $ 1.82 $ 1.83 $ 1.84 $ 1.86 $ 1.87 -------------------- 26.0% $ 1.68 $ 1.69 $ 1.70 $ 1.71 $ 1.72 $ 1.73 28.5% $ 1.59 $ 1.59 $ 1.60 $ 1.61 $ 1.62 $ 1.63 --------- Average of Box $ 1.92 --------- - -------------------------------------------------------------------------------- All Discounted amounts have been calculated utilizing a mid-year convention. Sources of information: Company Financials, Projections and Management. Long Term and Equity Assumptions - Revised Case 2 (2% Growth) ($ in thousands) Actual Projected ----------------------------- ----------------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 Terminal ------------------ ------------------ 2000 2001 2001 2002 2003 2004 Period ----------------------------- ----------------------------------------- Existing Fixed Assets Gross Assets $ 1,633 $ 1,707 $ 1,759 $ 1,759 $ 1,759 $ 1,759 Less Acc Deprec 1,104 1,234 1,335 1,439 1,563 1,657 ---------------------------- ----------------------------- Net Book Value $ 529 $ 473 $ 424 $ 320 $ 196 $ 102 ============================ ============================= Deprec Expense $ 163 $ 206 $ 101 $ 104 $ 124 $ 94 $ - ============================ ======================================== New Fixed Assets Capex $ 99 $ 250 $ 150 $ - ======================================== Total Capex Years Deprec Expense 5 $ 20 $ 70 $ 100 $ - ======================================== Net Book Value Mach & Equip $ 99 $ 349 $ 499 Gross Assets $ 99 $ 349 $ 499 Less Acc Deprec 20 90 190 ----------------------------- Net Book Value $ 79 $ 259 $ 309 ============================= Total Assets Gross Assets $ 1,633 $ 1,707 $ 1,759 $ 1,858 $ 2,108 $ 2,258 Less Acc Deprec 1,104 1,234 1,335 1,459 1,653 1,847 ---------------------------- ----------------------------- Net Book Value $ 529 $ 473 $ 424 $ 399 $ 455 $ 411 ============================ ============================= Deprec Expense $ 163 $ 206 $ 101 $ 124 $ 194 $ 194 $ - ============================ ======================================== Intangibles Gross Intangible $ 474 $ 474 $ 474 $ 474 $ 474 $ 474 Less Acc Amort 216 242 255 268 294 320 ---------------------------- ----------------------------- Net Book Value $ 258 $ 232 $ 219 $ 206 $ 180 $ 154 ============================ ============================= Amort Expense $ 26 $ 26 $ 13 $ 13 $ 26 $ 26 $ - ============================ ======================================== Deprec & Amort Expense $ 189 $ 232 $ 114 $ 137 $ 220 $ 220 $ - ============================ ======================================== Actual as of 8/31/01 --------- Equity Value Assumptions Debt & Other Obligations Interest Bearing Debt $ 322 Contingent Liabilities 550 Other - --------- 872 --------- Less Cash Cash on Hand 3,170 Assumed cash from exercise of options 16 Assumed value of notes 3,396 --------- 6,582 --------- Net Debt $ (5,710) ========= Common Stock Equivalents (in thousands) Common Stock Outstanding 5,828 Stock issued re Other - --------- 5,828 --------- Exercise $ Options in the money: Plan 1 $ 1.09 15 Plan 2 $ - - --------- 15 --------- Total Common Stock Equivalents 5,843 ========= Sources of information: Company Financials, Pro jections and Management. Operating and Working Capital Assumptions - Revised Case 2 (2% Growth) ($ in thousands) Actual Projected ----------------------------- ----------------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 Terminal ------------------ ------------------ 2000 2001 2001 2002 2003 2004 Period ------------------------------ ----------------------------------------- Growth Statistics and Assumptions Revenue na -6.0% na -53.6% 107.8% 2.0% Cost of Sales na 0.3% na -53.5% 106.5% 2.0% Operating Expenses na -2.5% na -51.5% 89.7% 1.3% EBITDA na -52.1% na -68.4% 313.2% 6.1% EBIT na -59.6% na -76.9% 510.9% 7.3% After-tax Income before na -69.7% na -66.3% 510.9% 7.3% Interest Profitability Gross Margin 42.9% 39.1% 39.7% 38.9% 39.3% 39.4% EBITDA 10.2% 5.2% 4.3% 3.5% 7.0% 7.3% EBIT 9.2% 4.0% 3.0% 2.0% 5.8% 6.1% After-tax Income before Interest 5.1% 1.6% 1.1% 1.2% 3.5% 3.7% Income Tax Expense and Assumptions Statutory Tax Rate 39.5% 39.5% 39.5% Effective Tax Rate 44.7% 58.5% 63.1% 39.5% 39.5% 39.5% 0.0% Current Period Tax $ 837 $ 442 $ 176 $ 69 $ 422 $ 453 NOL Usage - - - - - ----------------------------- ------------------------------ Income Tax Expense $ 837 $ 442 $ 176 $ 69 $ 422 $ 453 ============================= ============================== Ending NOL Balance $ - $ - $ - $ - ======= ============================== Actual Projected ----------------------------- ---------------------------------------- FY ended 6 Mths 6 Mths FY ended February 28/29 Mar - Aug Sep - Feb February 28/29 Terminal ------------------ ------------------ 2000 2001 2001 2002 2003 2004 Period ------------------------------ ---------------------------------------- Non-Cash Working Capital Assumptions Accounts Receivable (AR) AR Days Outstanding 59 68 na 60 60 60 % of Sales 16.3% 18.7% na 16.4% 16.4% 16.4% Inventory Days Inventory Outstanding 74 74 na 74 74 74 % Cost of Sales 20.4% 20.3% na 20.3% 20.3% 20.3% Prepayments % of Direct and Op Costs 2.2% 0.7% na 0.7% 0.7% 0.7% Accounts Payable (AP) AP Days Outstanding 22 12 na 12 12 12 % of Direct and Op Costs 6.1% 3.3% na 3.3% 3.3% 3.3% Accrued Expenses & Other % of Direct and Op Costs 8.6% 3.2% na 3.2% 3.2% 3.2% Changes in Non-Cash Net Working Capital Accounts Receivables $ 3,293 $ 3,568 $ 2,043 $ 2,958 $ 3,019 $ 3,080 Inventory 2,359 2,352 2,375 2,214 2,258 2,304 Prepayments 408 134 111 121 120 122 Accounts Payables 1,111 597 286 568 561 571 Accrued Expenses & Other 1,567 570 730 553 546 556 ----------------------------- ------------------------------ Non-Cash Net WC $ 3,382 $ 4,887 $ 3,513 $ 4,172 $ 4,290 $ 4,378 ============================= ============================== % of EBITDA 164.1% 494.6% 893.9% 1337.2% 332.8% 320.1% ============================= ============================== Cash Flow (Used) Sourced by Non-Cash Net Wrkg Capi $ 1,365 $ (1,505) $ 1,374 $ (659) $ (118) $ (88) $ - ============================= ======================================== ________________________________________________________________________________ Sources of information: Company Financials, Projections and Management. Cost of Capital Calculation ($ in thousands, except per share) Cost of Common Stock Riskless (1) 30 year treasury coupon (Rf) 5.6% Risk (2) Equity risk premium (EP) 7.8% Industry risk premium (IP) 2.3% Size Premium (SP) 8.4% -------- 24.1% ======== Cost of Debt Nominal % of Weighted Type of Debt Rate Amount of Debt Cost of Debt ---------------------------------------------------------------------------- Acquisition Notes Payble 8.00% $ 255 79.2% 6.3% Acquisition Note Payble 8.00% 67 20.8% 1.7% - 0.0% 0.0% - 0.0% 0.0% - 0.0% 0.0% ---------------------------------- $ 322 100.0% 8.0% ================================== Note: Company has $2m unused line of credit at LIBOR + 2.35%. As of October 10, 2001 LIBOR was 2.47%. Weighted Average Cost of Capital Shares Outs. Stock Price Market % of Nominal Effective Cost of Weighted Type (in thousands) 09-Oct-01 Value Total Capital Rate Tax Rate Capital Cost of Capital ------------------------------------------------------------------------------------------------------------------ Debt $ 322 6.6% 8.0% 58.5% 3.3% 0.2% Common Stock 5,828 $ 0.7800 4,546 93.4% 24.1% 24.1% 22.5% -------- ------- ------- $ 4,868 100.0% 22.7% ======== ======= ======= _______________ (1) As reported by the Federal Reserve Board on a weekly-average basis for the week ended September 28, 2001. (2) Sourced from the Ibbotson SBBI Valuation Edition 2001 Yearbook. Sources of information: Company Financials, Projections and Management. BCT International, Inc. Adjusted Net Book Value & Liquidation Analysis [LOGO] CAPITALINK Smart Investment Banking Adjusted Net Book Value Analysis as of August 31, 2001 ($ in thousands) ------------------------------------- Going Concern Premise ------------------------------------- Unadjusted Book Value Adjustments(1) Notes Adjusted ------------ ---------------- ------- ----------- Current Assets: Cash & Equivalents $ 2,823 $ - $ 2,823 Cash National Account 347 (149) a 198 Accounts Receivable, net 2,818 (1,409) b 1,409 Inventory 2,375 (1,544) c 831 Assets Held For Sale 150 (150) d - Prepaid Expenses 111 - 111 ------- -------- ------- Total Current Assets 8,624 (3,252) 5,372 Term Assets: Net Property, Plant & Equipment 423 (275) e 148 Notes Receivables, net 5,736 (2,340) f 3,396 Intangible Assets 219 (219) g - Security Deposits 24 - 24 Deferred Tax Assets 1,155 - 1,155 ------- -------- ------- Total Term Assets 1,398 (219) 1,179 ------- -------- ------- Total Assets $16,181 $ (6,086) $10,095 ======= ======== ======= ------------------------------------- Going Concern Premise ------------------------------------- Unadjusted Book Value Adjustments(1) Notes Adjusted ------------ ---------------- ------- ----------- Current Liabilities: Notes Payable, Current 86 - 86 Accounts Payable 286 (149) h 137 Accured Expenses 580 - 580 Deferred Revenue, Current - - - ------- -------- ------- Total Current Liabilities 952 (149) 803 Long Term Liabilities Notes Payable 194 - 194 Deferred Revenue 487 - 487 ------- -------- ------- Total Long Term Liabilities 681 - 681 Contingent Liabilities Other - 700 I 700 ------- -------- ------- Total Contingent Liabilities - 700 700 ------- -------- ------- Total Liabilities 1,633 - 2,184 ------- -------- ------- Net Book Value $14,548 $ (6,086) $ 7,911 ======= ======== ======= Fair Market Value 7,911 Add Cash From Exercise of In The Money Options 16 ------- 7,927 ------- 7,927 Number Outstanding Shares, Fully 5,843 Diluted ------- Fair Market Value, Per Share $ 1.36 ======= Explanation of Notes: a Amounts due to franchises and to the national account. b Expect to collect 50% of total Accounts Receivable. c 65% reduction due to specialized inventory and limited market. d Includes BCT's share of BCT Hawaii. FMV is negative. e 65% reduction due to specialized assets and limited market. f Adjusted as per Notes analysis. g Consist of rights to franchise BCTs in Canada. No Liquidation value. h Corresponding liability removed as per adjustment in (a) I Contingent liabilities include note guarantee for BCT 3039 and remaining office leases. - -------------------------------------------------------------------------------- (1) Adjustments determined by discussions with Company Management. Sources of Information: Company Financial Statements and Company Management Liquidation Analysis as of August 31, 2001 ($ in thousands) ------------------------------------- Liquidation Premise ------------------------------------- Unadjusted Book Value Adjustments(1) Notes Adjusted ------------ ---------------- ------ ---------- Current Assets: Cash & Equivalents $ 2,823 $ - $ 2,823 Cash National Account 347 (149) a 198 Accounts Receivable, net 2,818 (1,409) b 1,409 Inventory 2,375 (1,544) c 831 Assets Held For Sale 150 (150) d - Prepaid Expenses 111 (111) e - ------- ------- ------- Total Current Assets 8,624 (3,363) 5,261 Term Assets: Net Property, Plant & Equipment 423 (275) f 148 Notes Receivables, net 5,736 (2,340) g 3,396 Intangible Assets 219 (219) h - Security Deposits 24 - I 24 Deferred Tax Assets 1,155 (1,155) j - ------- ------- ------- Total Term Assets 1,398 (1,374) 24 ------- ------- ------- Total Assets $16,181 $(7,352) $ 8,829 ======= ======= ======= ------------------------------------- Liquidation Premise ------------------------------------- Unadjusted Book Value Adjustments(1) Notes Adjusted ------------ ---------------- ------ ---------- Current Liabilities: Notes Payable, Current 86 - 86 Accounts Payable 286 (149) k 137 Accured Expenses 580 - 580 Deferred Revenue, Current - - - ------- ------- ------- Total Current Liabilities 952 (149) 803 Long Term Liabilities Notes Payable 194 - 194 Deferred Revenue 487 (487) l - ------- ------- ------- Total Long Term Liabilities 681 - 194 Contingent Liabilities Other - 700 m 700 ------- ------- ------- Total Contingent Liabilities - 700 700 ------- ------- ------- Total Liabilities 1,633 - 1,697 ------- ------- ------- Net Book Value $14,548 $(7,352) $ 7,132 ======= ======= ======= Fair Market Value 7,132 Less Liquidation Costs 20% (1,426) ------- 5,706 Number Outstanding Shares, Fully Diluted 5,828 Fair Market Value, Per Share $ 0.98 ======= Explanation of Notes: a Amounts due to franchises and to the national account. b Expect to collect 50% of total Accounts Receivable. c 65% reduction due to specialized inventory and limited market. d Includes BCT's share of BCT FMV is negative. Hawaii. e No value under liquidation scenario. f 65% reduction due to specialized assets and limited market. g Adjusted as per Notes analysis. h Consist of rights to No Liquidation value. franchise BCTs in Canada. I No value under liquidation scenario. j No value under liquidation scenario. k Corresponding liability removed as per adjustment in (a) l No value under liquidation scenario. m Contingent liabilities include note guarantee for BCT 3039 and remaining office leases. - -------------------------------------------------------------------------------- (1) Adjustments determined by discussions with Company Management. (2) Liquidation costs include all legal, redundancy, and selling costs in event of bankruptcy. Sources of Information: Company Financial Statements and Company Management BCT International, Inc. Notes Summary Analysis, as of August 31, 2001 ($ in thousands) Nominal Payments ------------------------------------------------------------ Payment Expected Expected Collateral Total Nominal % Note Plant Location Name Notes Probability (1) Note Payment (1) Payment (1) Payment Repaid - ------------------------- ----------- -------- -------------- --------------- ------------------- ------------- ------ 1 Fort Lauderdale * * * * * * * 2 Port St. Lucie * * * * * * * 9 Tampa * * * * * * * 10 Jacksonville * * * * * * * 2010 Holbrook * * * * * * * 2033 Greensboro * * * * * * * 2038 Pittsburgh * * * * * * * 2043 Waterbury * * * * * * * 2044 Philadelphia * * * * * * * 2046 Upper Saddle River * * * * * * * 2049 Louisville * * * * * * * 2053 Marietta * * * * * * * 2054 New York * * * * * * * 3013 Costa Mesa * * * * * * * 3028 Anaheim * * * * * * * 3040 San Marcos * * * * * * * 3045 Hawaii * * * * * * * 3048 Spokane * * * * * * * 3051 Gardena * * * * * * * 4001 Columbus * * * * * * * 4014 Indiana * * * * * * * 4022 Toledo * * * * * * * 4027 Waukegan * * * * * * * 4028 Detroit * * * * * * * 4033 Brookfield * * * * * * * 4034 Kansas City * * * * * * * 4035 Akron * * * * * * * 4036 Cleveland * * * * * * * 6012 Dallas * * * * * * * 7001 Mississauga * * * * * * * 7010 Vancouver * * * * * * * - ----------------------------------------------------------------------------------------------------------------------------------- Totals ($)/ Averages (%) $ 7,284 52% $ 3,814 $ 2,018 $ 5,832 80% =================================================================================================================================== Present Value (PV) of Payments ------------------------------ PV of % Note Plant Location Payments (2) Repaid - ------------------------- ----------- ------ 1 Fort Lauderdale $ * * 2 Port St. Lucie * * 9 Tampa * * 10 Jacksonville * * 2010 Holbrook * * 2033 Greensboro * * 2038 Pittsburgh * * 2043 Waterbury * * 2044 Philadelphia * * 2046 Upper Saddle River * * 2049 Louisville * * 2053 Marietta * * 2054 New York * * 3013 Costa Mesa * * 3028 Anaheim * * 3040 San Marcos * * 3045 Hawaii * * 3048 Spokane * * 3051 Gardena * * 4001 Columbus * * 4014 Indiana * * 4022 Toledo * * 4027 Waukegan * * 4028 Detroit * * 4033 Brookfield * * 4034 Kansas City * * 4035 Akron * * 4036 Cleveland * * 6012 Dallas * * 7001 Mississauga * * 7010 Vancouver * * - ----------------------------------------------------------- Totals ($)/ Averages (%) $ 3,396 47% =========================================================== __________________________ (1) Adjustments determined by discussions with Company Management. (2) Represents the Net Present Value (NPV) of expected note payments and collateral payments (under liquidation). See supporting schedules for more details. Sources of Information: Company Financial Statements and Company Management BCT International, Inc. Notes Analysis - Explanation of Discounts, as of August 31, 2001 ($ in thousands) Debt to 5m FY02 Sales Payment Plant Location Name Notes Sales Growth Ratio Probability(1) Reasoning (1) - ----------------------- ---------- ----- ------------ ------- ------------- ------------ 1 Fort Lauderdale Roberts $ 211 7% % 100% - ------------------------------------------------------------------------------------------------------------------------------------ 2 Port St. Lucie * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 9 Tampa * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 10 Jacksonville * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 2010 Holbrook * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 2033 Greensboro * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 2038 Pittsburgh * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 2043 Waterbury * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 2044 Philadelphia * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 2046 Upper Saddle River * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 2049 Louisville * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 2053 Marietta * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 2054 New York * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 3013 Costa Mesa * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 3028 Anaheim * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 3040 San Marcos * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 3045 Hawaii * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 3048 Spokane * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 3051 Gardena * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 4001 Columbus * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 4014 Indiana * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 4022 Toledo * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 4027 Waukegan * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ BCT International, Inc. Notes Analysis - Explanation of Discounts, as of August 31, 2001 ($ in thousands) Debt to 5 m FY02 Sales Payment Plant Location Name Notes Sales Growth Ratio Probability (1) Reasoning (1) - ------------------------------------------------------------------------------------------------------------------------------------ 402 Detroit * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 4033 Brookfield * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 4034 Kansas City * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 4035 Akron * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 4036 Cleveland * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 6012 Dallas * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 7001 Mississauga * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ 7010 Vancouver * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ ------- Totals $ 7,284 ======= - ------------------------------------- (1) Adjustments determined by discussions with Company Management. Sources of Information: Company Financial Statements and Company Management BCT International, Inc. Present Value of Notes, as of August 31, 2001 ($ in thousands) Payment Adjusted Value Interest Note Term Of Monthly Present Plant Location Name Notes Probability of Notes (1) Rate Expiry Date Note (Mths) Payment Value (2) - -------------------------- ---------- ------- ----------- -------------- --------- ----------- ----------- ------- --------- 1 Fort Lauderdale * * * * * * * * * 2 Port St. Lucie * * * * * * * * * 9 Tampa * * * * * * * * * 10 Jacksonville * * * * * * * * * 2010 Holbrook * * * * * * * * * 2033 Greensboro * * * * * * * * * 2038 Pittsburgh * * * * * * * * * 2043 Waterbury * * * * * * * * * 2044 Philadelphia * * * * * * * * * 2046 Upper Saddle River * * * * * * * * * 2049 Louisville * * * * * * * * * 2053 Marietta * * * * * * * * * 2054 New York * * * * * * * * * 3013 Costa Mesa * * * * * * * * * 3028 Anaheim * * * * * * * * * 3040 San Marcos * * * * * * * * * 3045 Hawaii * * * * * * * * * 3048 Spokane * * * * * * * * * 3051 Gardena * * * * * * * * * 4001 Columbus * * * * * * * * * 4014 Indiana * * * * * * * * * 4022 Toledo * * * * * * * * * 4027 Waukegan * * * * * * * * * 4028 Detroit * * * * * * * * * 4033 Brookfield * * * * * * * * * 4034 Kansas City * * * * * * * * * 4035 Akron * * * * * * * * * 4036 Cleveland * * * * * * * * * 6012 Dallas * * * * * * * * * 7001 Mississauga * * * * * * * * * 7010 Vancouver * * * * * * * * * - ----------------------------------------------------------------------------------------------------------------------------------- Totals $ 7,284 $ 3,814 $ 2,245 =================================================================================================================================== ______________ (1) Adjustments determined by discussions with Company Management. (2) Note Payments are discounted using the Company's estimated Cost of Capital of 22.70%. Sources of Information: Company Financial Statements and Company Management BCT International, Inc. Notes Collateral Analysis, as of August 31, 2001 ($ in thousands) Amount Collateral Payments ------------------------------------------ Payment Not Expected System Sales Liquidation Value Franchise Total Plant Location Name Notes Prob (1) Recovered Life (1) FY2001 of Assets (1) Fee (1) Other Payment - ----------------------- ------------ ----- --------- --------- --------- ------------ ----------------- --------- ----- ------- 1 Fort Lauderdale * * * * * * * * * * 2 Port St. Lucie * * * * * * * * * * 9 Tampa * * * * * * * * * * 10 Jacksonville * * * * * * * * * * 2010 Holbrook * * * * * * * * * * 2033 Greensboro * * * * * * * * * * 2038 Pittsburgh * * * * * * * * * * 2043 Waterbury * * * * * * * * * * 2044 Philadelphia * * * * * * * * * * 2046 Upper Saddle River * * * * * * * * * * 2049 Louisville * * * * * * * * * * 2053 Marietta * * * * * * * * * * 2054 New4York * * * * * * * * * * 3013 Costa Mesa * * * * * * * * * * 3028 Anaheim * * * * * * * * * * 3040 San0Marcos * * * * * * * * * * 3045 Hawaii * * * * * * * * * * 3048 Spokane * * * * * * * * * * 3051 Gardena * * * * * * * * * * 4001 Columbus * * * * * * * * * * 4014 Indiana * * * * * * * * * * 4022 Toledo * * * * * * * * * * 4027 Waukegan * * * * * * * * * * 4028 Detroit * * * * * * * * * * 4033 Brookfield * * * * * * * * * * 4034 Kansas City * * * * * * * * * * 4035 Akron * * * * * * * * * * 4036 Cleveland * * * * * * * * * * 6012 Dallas * * * * * * * * * * 7001 Mississauga * * * * * * * * * * 7010 Vancouver * * * * * * * * * * 7015 Quebec * * * * * * * * * * - ------------------------------------------------------------------------------------------------------------------------------------ Totals $7,284 $3,470 $38,266 $ 4,056 $ 448 $ 566 $2,523 ==================================================================================================================================== Present Value Liquidation Net of Collateral Plant Location Costs (2) Payment Payments - ----------------------- ----------- ----------- ------------- 1 Fort Lauderdale * * * 2 Port St. Lucie * * * 9 Tampa * * * 10 Jacksonville * * * 2010 Holbrook * * * 2033 Greensboro * * * 2038 Pittsburgh * * * 2043 Waterbury * * * 2044 Philadelphia * * * 2046 Upper Saddle River * * * 2049 Louisville * * * 2053 Marietta * * * 2054 New4York * * * 3013 Costa Mesa * * * 3028 Anaheim * * * 3040 San0Marcos * * * 3045 Hawaii * * * 3048 Spokane * * * 3051 Gardena * * * 4001 Columbus * * * 4014 Indiana * * * 4022 Toledo * * * 4027 Waukegan * * * 4028 Detroit * * * 4033 Brookfield * * * 4034 Kansas City * * * 4035 Akron * * * 4036 Cleveland * * * 6012 Dallas * * * 7001 Mississauga * * * 7010 Vancouver * * * 7015 Quebec * * * - ---------------------------------------------------------------- Totals $ 505 2,018 $ 1,151 ================================================================ ________________ (1) Adjustments determined by discussions with Company Management. (2) 20% liquidation costs are assumed. (3) Cash flows are discounted using the Company's cost of capital estimated to be 22.3%, and assuming a 6 month liquidation process. Sources of Information: Company Financial Statements and Company Management BCT International, Inc. Plant Sales Growth Analysis [LOGO] CAPITALINK Smart Investment Banking BCT International, Inc. Actual and Projected Growth System Sales Growth Compound Growth Paper Sales ------------------------------------------------------ ------------------ --------------------------- Actual Projected Actual Projected Actual ------------------------------------------------------ ------------------ --------------------------- Plant Location FY 2000 FY 2001 5m FY02 FY2002 FY2003 FY 2004 '99-'01 '99-'04 FY 2000 FY 2001 5m Fy02 - -------------------------------------------------------------------------------------------------------------------------------- 1 Fort Lauderdale * * * * * * * * * * * 2 Port St. Lucie * * * * * * * * * * * 7 Miami * * * * * * * * * * * 8 Orlando * * * * * * * * * * * 9 Tampa * * * * * * * * * * * 10 Jacksonville * * * * * * * * * * * 12 Mobile * * * * * * * * * * * 13 Jackson * * * * * * * * * * * 14 Metairie * * * * * * * * * * * 1010 Argentina * * * * * * * * * * * 2010 Holbrook * * * * * * * * * * * 2011 Egg Harbor * * * * * * * * * * * 2012 Garden City Park * * * * * * * * * * * 2019 College Park * * * * * * * * * * * 2021 Norristown * * * * * * * * * * * 2026 Beltsville * * * * * * * * * * * 2029 Norfolk * * * * * * * * * * * 2030 Memphis * * * * * * * * * * * 2033 Greensboro * * * * * * * * * * * 2034 Nashville * * * * * * * * * * * 2035 Charlotte * * * * * * * * * * * 2036 Syracuse * * * * * * * * * * * 2037 Richmond * * * * * * * * * * * 2038 Pittsburgh * * * * * * * * * * * 2039 Valley Cottage * * * * * * * * * * * 2040 Raleigh * * * * * * * * * * * 2042 Columbia * * * * * * * * * * * 2043 Waterbury * * * * * * * * * * * 2044 Philadelphia * * * * * * * * * * * 2046 Upper Saddle River * * * * * * * * * * * 2048 Rhode Island * * * * * * * * * * * 2049 Louisville * * * * * * * * * * * 2050 Central NJ * * * * * * * * * * * 2051 Merrimack * * * * * * * * * * * 2052 Norcross * * * * * * * * * * * 2053 Marietta * * * * * * * * * * * 2054 New York * * * * * * * * * * * 3009 Tucson * * * * * * * * * * * 3013 Costa Mesa * * * * * * * * * * * 3014 Laguna Hills * * * * * * * * * * * 3017 Phoenix East * * * * * * * * * * * 3019 Seattle * * * * * * * * * * * 3022 Colorado * * * * * * * * * * * 3023 Rohnert Park * * * * * * * * * * * 3024 Las Vegas * * * * * * * * * * * 3027 Albuquerque * * * * * * * * * * * 3028 Anaheim * * * * * * * * * * * 3030 San Diego * * * * * * * * * * * 3031 Phoenix West * * * * * * * * * * * 3033 Salt Lake City * * * * * * * * * * * 3037 Portland * * * * * * * * * * * 3038 Upland * * * * * * * * * * * 3039 San Francisco * * * * * * * * * * * 3040 San Marcos * * * * * * * * * * * 3045 Hawaii * * * * * * * * * * * 3048 Spokane * * * * * * * * * * * 3049 Concord * * * * * * * * * * * 3051 Gardena * * * * * * * * * * * 4000 Addison * * * * * * * * * * * 4001 Columbus * * * * * * * * * * * 4014 Indiana * * * * * * * * * * * 4017 Erlanger * * * * * * * * * * * 4022 Toledo * * * * * * * * * * * 4024 St. Louis * * * * * * * * * * * 4026 Rockford * * * * * * * * * * * 4027 Waukegan * * * * * * * * * * * 4028 Detroit * * * * * * * * * * * 4029 Minneapolis * * * * * * * * * * * Growth Compound Growth Projected Actual Projected Paper Sales as % System Sales Hank Notes as --------------------------- ------------------- ----------------------------- Plant Location FY 2002 FY 2003 5m FY04 '99-'01 '99-'04 FY 2000 FY 2001 5m Fy02 Rating Notes % Sales - ----------------------------------------------------------------------------------------------------------------------------------- 1 Fort Lauderdale * * * * * * * * * * * 2 Port St.Lucie * * * * * * * * * * * 7 Miami * * * * * * * * * * * 8 Orlando * * * * * * * * * * * 9 Tampa * * * * * * * * * * * 10 Jacksonville * * * * * * * * * * * 12 Mobile * * * * * * * * * * * 13 Jackson * * * * * * * * * * * 14 Metairie * * * * * * * * * * * 1010 Argentina * * * * * * * * * * * 2010 Holbrook * * * * * * * * * * * 2011 Egg Harbor * * * * * * * * * * * 2012 Garden City Park * * * * * * * * * * * 2019 College Park * * * * * * * * * * * 2021 Norristown * * * * * * * * * * * 2026 Beltsville * * * * * * * * * * * 2029 Norfolk * * * * * * * * * * * 2030 Memphis * * * * * * * * * * * 2033 Greensboro * * * * * * * * * * * 2034 Nashville * * * * * * * * * * * 2035 Charlotte * * * * * * * * * * * 2036 Syracuse * * * * * * * * * * * 2037 Richmond * * * * * * * * * * * 2038 Pittsburgh * * * * * * * * * * * 2039 Valley Cottage * * * * * * * * * * * 2040 Raleigh * * * * * * * * * * * 2042 Columbia * * * * * * * * * * * 2043 Waterbury * * * * * * * * * * * 2044 Philadelphia * * * * * * * * * * * 2046 Upper Saddle River * * * * * * * * * * * 2048 Rhode Island * * * * * * * * * * * 2049 Louisville * * * * * * * * * * * 2050 Central NJ * * * * * * * * * * * 2051 Merrimack * * * * * * * * * * * 2052 Norcross * * * * * * * * * * * 2053 Marietta * * * * * * * * * * * 2054 New York * * * * * * * * * * * 3009 Tucson * * * * * * * * * * * 3013 Costa Mesa * * * * * * * * * * * 3014 Laguna Hills * * * * * * * * * * * 3017 Phoenix East * * * * * * * * * * * 3019 Seattle * * * * * * * * * * * 3022 Colorado * * * * * * * * * * * 3023 Rohnert Park * * * * * * * * * * * 3024 Las Vegas * * * * * * * * * * * 3027 Albuquerque * * * * * * * * * * * 3028 Anaheim * * * * * * * * * * * 3030 San Diego * * * * * * * * * * * 3031 Phoenix West * * * * * * * * * * * 3033 Salt Lake City * * * * * * * * * * * 3037 Portland * * * * * * * * * * * 3038 Upland * * * * * * * * * * * 3039 San Francisco * * * * * * * * * * * 3040 San Marcos * * * * * * * * * * * 3045 Hawaii * * * * * * * * * * * 3048 Spokane * * * * * * * * * * * 3049 Concord * * * * * * * * * * * 3051 Gardena * * * * * * * * * * * 4000 Addison * * * * * * * * * * * 4001 Columbus * * * * * * * * * * * 4014 Indiana * * * * * * * * * * * 4017 Erlanger * * * * * * * * * * * 4022 Toledo * * * * * * * * * * * 4024 St. Louis * * * * * * * * * * * 4026 Rockford * * * * * * * * * * * 4027 Waukegan * * * * * * * * * * * 4028 Detroit * * * * * * * * * * * 4029 Minneapolis * * * * * * * * * * * 1 BCT International, Inc. Actual and Projected Growth System Sales Growth Compound Growth Paper Sales Growth -------------------------------------------------- ----------------- -------------------------------------------- Actual Projected Actual Projected Actual Projected -------------------------------------------------- ----------------- -------------------------------------------- Plant Location FY 2000 FY 2001 5mFY02 FY2002 FY2003 FY2004 '99-'01 '99-'04 FY2000 FY2001 5mFY02 FY2002 FY2003 FY 2004 - --------------------------------------------------------------------- ---------------- -------------------------------------------- 4031 Des Moines * * * * * * * * * * * * * * 4032 Milwaukee * * * * * * * * * * * * * * 4033 Brookfield * * * * * * * * * * * * * * 4034 Kansas City * * * * * * * * * * * * * * 4035 Akron * * * * * * * * * * * * * * 4036 Cleveland * * * * * * * * * * * * * * 6007 San Antonio * * * * * * * * * * * * * * 6009 Houston * * * * * * * * * * * * * * 6011 Oklahoma City * * * * * * * * * * * * * * 6012 Dallas * * * * * * * * * * * * * * 6014 Austin * * * * * * * * * * * * * * 7001 Mississauga * * * * * * * * * * * * * * 7002 Toronto * * * * * * * * * * * * * * 7004 Kitchener * * * * * * * * * * * * * * 7007 Ottawa * * * * * * * * * * * * * * 7008 Calgary * * * * * * * * * * * * * * 7009 Atlantic Canada * * * * * * * * * * * * * * 7010 Vancouver * * * * * * * * * * * * * * 7015 Quebec * * * * * * * * * * * * * * Totals * * * * * * * * * * * * * * 15 Bradenton * * * * * * * * * * * * * * 18 Port St. Lucie * * * * * * * * * * * * * * 1000 Delray Beach * * * * * * * * * * * * * * 1002 Milwaukee * * * * * * * * * * * * * * 1003 Sun Praire * * * * * * * * * * * * * * 1005 Ft. Lauderdale * * * * * * * * * * * * * * 1007 WPG * * * * * * * * * * * * * * 1008 Neenah * * * * * * * * * * * * * * 1010 BCD Cargo * * * * * * * * * * * * * * 1012 Chicago * * * * * * * * * * * * * * 1016 Tampa * * * * * * * * * * * * * * 1022 * * * * * * * * * * * * * * 1026 Oskosh * * * * * * * * * * * * * * 1029 Boynton * * * * * * * * * * * * * * Beach 1030 * * * * * * * * * * * * * * 1031 Amesbury * * * * * * * * * * * * * * 1033 Copymax * * * * * * * * * * * * * * 3047 Sacramento * * * * * * * * * * * * * * 3051 * * * * * * * * * * * * * * Totals 2.24% -0.46% -5.01% -5.26% -6.76% -0.91% na -1.37% 17.23% -6.67% -6.67% -6.67% Compound Growth ------------------ Actual Projected Paper Sales as % System Sales Hank Notes as ------------------- ------------------------------ Plant Location '00-'0 '00-'04 FY 2000 FY 2001 5mY02 Rating Notes% Sales - ------------------ ------------------- ------------------------------ ------ ------ -------- 4031 Des Moines * * * * * * * * 4032 Milwaukee * * * * * * * * 4033 Brookfield * * * * * * * * 4034 Kansas City * * * * * * * * 4035 Akron * * * * * * * * 4036 Cleveland * * * * * * * * 6007 San Antonio * * * * * * * * 6009 Houston * * * * * * * * 6011 Oklahoma City * * * * * * * * 6012 Dallas * * * * * * * * 6014 Austin * * * * * * * * 7001 Mississauga * * * * * * * * 7002 Toronto * * * * * * * * 7004 Kitchener * * * * * * * * 7007 Ottawa * * * * * * * * 7008 Calgary * * * * * * * * 7009 Atlantic Canada * * * * * * * * 7010 Vancouver * * * * * * * * 7015 Quebec * * * * * * * * ------ Totals 1.35% -4.73% 12.3% 12.6% 12.2% $7,284 ====== 15 Bradenton * * 18 Port St. Lucie * * 1000 Delray Beach * * 1002 Milwaukee * * 1003 Sun Praire * * 1005 Ft. * * Lauderdale 1007 WPG * * 1008 Neenah * * 1010 BCD Cargo * * 1012 Chicago * * 1016 Tampa * * 1022 * * 1026 Oskosh * * 1029 Boynton * * Beach * * 1030 1031 Amesbury * * 1033 Copymax * * 3047 Sacramento * * 3051 * * Totals BCT International, Inc. Actual and Projected System Sales with Projected Royalty Sales System Sales Growth ------------------------------------------------------------------------ --------------------------------- Actual Projected Actual ------------------------------------------------------------------------ --------------------------------- Plant Location FY 1999 FY 2000 FY 2001 FY2002 FY 2003 FY 2004 FY 2000 FY 2001 5 m FY02 - ------------------------------------------------------------------------------------------------------------------------------------ 1 Fort Lauderdale * * * * * * * * * 2 Port St. Lucie * * * * * * * * * 7 Miami * * * * * * * * * 8 Orlando * * * * * * * * * 9 Tampa * * * * * * * * * 10 Jacksonville * * * * * * * * * 12 Mobile * * * * * * * * * 13 Jackson * * * * * * * * * 14 Metairie * * * * * * * * * 1010 Argentina * * * * * * * * * 2010 Holbrook * * * * * * * * * 2011 Egg Harbor * * * * * * * * * 2012 Garden City Park * * * * * * * * * 2019 College Park * * * * * * * * * 2021 Norristown * * * * * * * * * 2026 Beltsville * * * * * * * * * 2029 Norfolk * * * * * * * * * 2030 Memphis * * * * * * * * * 2033 Greensboro * * * * * * * * * 2034 Nashville * * * * * * * * * 2035 Charlotte * * * * * * * * * 2036 Syracuse * * * * * * * * * 2037 Richmond * * * * * * * * * 2038 Pittsburgh * * * * * * * * * 2039 Valley Cottage * * * * * * * * * 2040 Raleigh * * * * * * * * * 2042 Columbia * * * * * * * * * 2043 Waterbury * * * * * * * * * 2044 Philadelphia * * * * * * * * * 2046 Upper Saddle Riv * * * * * * * * * 2048 Rhode Island * * * * * * * * * 2049 Louisville * * * * * * * * * 2050 Central NJ * * * * * * * * * 2051 Merrimack * * * * * * * * * 2052 Norcross * * * * * * * * * 2053 Marietta * * * * * * * * * 2054 New York * * * * * * * * * 3009 Tucson * * * * * * * * * 3013 Costa Mesa * * * * * * * * * 3014 Laguna Hills * * * * * * * * * 3017 Phoenix East * * * * * * * * * 3019 Seattle * * * * * * * * * 3022 Colorado * * * * * * * * * 3023 Rohnert Park * * * * * * * * * 3024 Las Vegas * * * * * * * * * 3027 Albuquerque * * * * * * * * * 3028 Anaheim * * * * * * * * * 3030 San Diego * * * * * * * * * 3031 Phoenix West * * * * * * * * * 3033 Salt Lake City * * * * * * * * * 3037 Portland * * * * * * * * * 3038 Upland * * * * * * * * * 3039 San Francisco * * * * * * * * * 3040 San Marcos * * * * * * * * * 3045 Hawaii * * * * * * * * * 3048 Spokane * * * * * * * * * 3049 Concord * * * * * * * * * 3051 Gardena * * * * * * * * * 4000 Addison * * * * * * * * * 4001 Columbus * * * * * * * * * 4014 Indiana * * * * * * * * * 4017 Erlanger * * * * * * * * * 4022 Toledo * * * * * * * * * 4024 St. Louis * * * * * * * * * 4026 Rockford * * * * * * * * * 4027 Waukegan * * * * * * * * * 4028 Detroit * * * * * * * * * 4029 Minneapolis * * * * * * * * * 4031 Des Moines * * * * * * * * * 4032 Milwaukee * * * * * * * * * 4033 Brookfield * * * * * * * * * Compound Growth -------------------------------------- --------------------- Projected Actual Project Effective Projected Net Royalties -------------------------------------- --------------------- ---------------------------------- Plant Location FY 2002 FY 2003 FY 2004 '99-'01 '99-'04 Royalty% FY2002 FY2003 FY2004 - ------------------------------------------------------------- --------------------- ----------------------------------------------- 1 Fort Lauderdale * * * * * * * * * 2 Port St. Lucie * * * * * * * * * 7 Miami * * * * * * * * * 8 Orlando * * * * * * * * * 9 Tampa * * * * * * * * * 10 Jacksonville * * * * * * * * * 12 Mobile * * * * * * * * * 13 Jackson * * * * * * * * * 14 Metairie * * * * * * * * * 1010 Argentina * * * * * * * * * 2010 Holbrook * * * * * * * * * 2011 Egg Harbor * * * * * * * * * 2012 Garden City Park * * * * * * * * * 2019 College Park * * * * * * * * * 2021 Norristown * * * * * * * * * 2026 Beltsville * * * * * * * * * 2029 Norfolk * * * * * * * * * 2030 Memphis * * * * * * * * * 2033 Greensboro * * * * * * * * * 2034 Nashville * * * * * * * * * 2035 Charlotte * * * * * * * * * 2036 Syracuse * * * * * * * * * 2037 Richmond * * * * * * * * * 2038 Pittsburgh * * * * * * * * * 2039 Valley Cottage * * * * * * * * * 2040 Raleigh * * * * * * * * * 2042 Columbia * * * * * * * * * 2043 Waterbury * * * * * * * * * 2044 Philadelphia * * * * * * * * * 2046 Upper Saddle Riv * * * * * * * * * 2048 Rhode Island * * * * * * * * * 2049 Louisville * * * * * * * * * 2050 Central NJ * * * * * * * * * 2051 Merrimack * * * * * * * * * 2052 Norcross * * * * * * * * * 2053 Marietta * * * * * * * * * 2054 New York * * * * * * * * * 3009 Tucson * * * * * * * * * 3013 Costa Mesa * * * * * * * * * 3014 Laguna Hills * * * * * * * * * 3017 Phoenix East * * * * * * * * * 3019 Seattle * * * * * * * * * 3022 Colorado * * * * * * * * * 3023 Rohnert Park * * * * * * * * * 3024 Las Vegas * * * * * * * * * 3027 Albuquerque * * * * * * * * * 3028 Anaheim * * * * * * * * * 3030 San Diego * * * * * * * * * 3031 Phoenix West * * * * * * * * * 3033 Salt Lake City * * * * * * * * * 3037 Portland * * * * * * * * * 3038 Upland * * * * * * * * * 3039 San Francisco * * * * * * * * * 3040 San Marcos * * * * * * * * * 3045 Hawaii * * * * * * * * * 3048 Spokane * * * * * * * * * 3049 Concord * * * * * * * * * 3051 Gardena * * * * * * * * * 4000 Addison * * * * * * * * * 4001 Columbus * * * * * * * * * 4014 Indiana * * * * * * * * * 4017 Erlanger * * * * * * * * * 4022 Toledo * * * * * * * * * 4024 St. Louis * * * * * * * * * 4026 Rockford * * * * * * * * * 4027 Waukegan * * * * * * * * * 4028 Detroit * * * * * * * * * 4029 Minneapolis * * * * * * * * * 4031 Des Moines * * * * * * * * * 4032 Milwaukee * * * * * * * * * 4033 Brookfield * * * * * * * * * Actual Sales ------------------------ Plant Location FY02 5 m FY01 - --------------------- ------------------------ 1 Fort Lauderdale * * 2 Port St. Lucie * * 7 Miami * * 8 Orlando * * 9 Tampa * * 10 Jacksonville * * 12 Mobile * * 13 Jackson * * 14 Metairie * * 1010 Argentina * * 2010 Holbrook * * 2011 Egg Harbor * * 2012 Garden City Park * * 2019 College Park * * 2021 Norristown * * 2026 Beltsville * * 2029 Norfolk * * 2030 Memphis * * 2033 Greensboro * * 2034 Nashville * * 2035 Charlotte * * 2036 Syracuse * * 2037 Richmond * * 2038 Pittsburgh * * 2039 Valley Cottage * * 2040 Raleigh * * 2042 Columbia * * 2043 Waterbury * * 2044 Philadelphia * * 2046 Upper Saddle Riv * * 2048 Rhode Island * * 2049 Louisville * * 2050 Central NJ * * 2051 Merrimack * * 2052 Norcross * * 2053 Marietta * * 2054 New York * * 3009 Tucson * * 3013 Costa Mesa * * 3014 Laguna Hills * * 3017 Phoenix East * * 3019 Seattle * * 3022 Colorado * * 3023 Rohnert Park * * 3024 Las Vegas * * 3027 Albuquerque * * 3028 Anaheim * * 3030 San Diego * * 3031 Phoenix West * * 3033 Salt Lake City * * 3037 Portland * * 3038 Upland * * 3039 San Francisco * * 3040 San Marcos * * 3045 Hawaii * * 3048 Spokane * * 3049 Concord * * 3051 Gardena * * 4000 Addison * * 4001 Columbus * * 4014 Indiana * * 4017 Erlanger * * 4022 Toledo * * 4024 St. Louis * * 4026 Rockford * * 4027 Waukegan * * 4028 Detroit * * 4029 Minneapolis * * 4031 Des Moines * * 4032 Milwaukee * * 4033 Brookfield * * 3 BCT International, Inc. Actual and Projected System Sales with Projected Royalty Sales System Sales ----------------------------------------------------------------------------------------- Actual Projected ----------------------------------------------------------------------------------------- Plant Location FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 - --------------------------------------------------------------------------------------------------------------------- 4034 Kansas City * * * * * * 4035 Akron * * * * * * 4036 Cleveland * * * * * * 6007 San Antonio * * * * * * 6009 Houston * * * * * * 6011 Oklahoma City * * * * * * 6012 Dallas * * * * * * 6014 Austin * * * * * * 7001 Mississauga * * * * * * 7002 Toronto * * * * * * 7004 Kitchener * * * * * * 7007 Ottawa * * * * * * 7008 Calgary * * * * * * 7009 Atlantic Canada * * * * * * 7010 Vancouver * * * * * * 7015 Quebec * * * * * * ----------------------------------------------------------------------------------------- Totals $105,328,121 $107,685,301 $7107,185,301 $3101,551,214 $ 94,688,309 $ 93,826,516 ========================================================================================= 15 Bradenton - - - - - - 18 Port St. Lucie - - - - - - 1000 Delray Beach - - - - - - 1002 Milwaukee - - - - - - 1003 Sun Praire - - - - - - 1005 Ft. Lauderdale - - - - - - 1007 WPG - - - - - - 1008 Neenah - - - - - - 1010 BCD Cargo - - - - - - 1012 Chicago - - - - - - 1016 Tampa - - - - - - 1022 - - - - - - 1026 Oskosh - - - - - - 1029 Boynton Beach - - - - - - 1030 - - - - - - 1031 Amesbury - - - - - - 1033 Copymax - - - - - - 3047 Sacramento - - - - - - 3051 - - - - - - ----------------------------------------------------------------------------------------- Totals $105,328,121 $107,685,767 $ 107,185,301 $ 101,551,214 $ 94,688,309 $ 93,826,516 ========================================================================================= 10K Reported $105,000,000 $107,000,000 $ 108,000,000 High Plant $ 3,595,387 $ 3,806,428 $ 3,723,336 $ 3,663,390 $ 3,844,675 $ 4,036,909 Average Plant 1,210,668 1,237,767 1,232,015 1,167,255 1,088,371 1,078,466 Median Plant 972,334 1,045,389 1,125,191 1,007,492 914,929 875,628 Low Plant 12,785 - 68,330 - - -- Total Top 10 Plants $ 27,029,595 $ 28,114,873 $ 27,146,357 $ 526,810,424 $ 27,156,727 $ 27,691,457 Total Top 20 Plants 45,156,731 46,974,683 46,045,662 44,955,726 45,064,845 45,611,841 Total Top 30 Plants 59,478,452 61,625,333 60,668,063 59,597,446 59,648,800 60,188,854 As % of Total Plants Sales Top 10 Plants 25.7% 26.1% 25.3% 26.4% 28.7% 29.5% Top 20 Plants 42.9% 43.6% 43.0% 44.3% 47.6% 48.6% Top 30 Plants 56.5% 57.2% 56.6% 58.7% 63.0% 64.1% As % of Plants Number of Plants 87 86 87 83 74 74 Top 10 Plants 11.5% 11.6% 11.5% 12.0% 13.5% 13.5% Top 20 Plants 23.0% 23.3% 23.0% 24.1% 27.0% 27.0% Top 30 Plants 34.5% 34.9% 34.5% 36.1% 40.5% 40.5% Growth Compound Growth ------------------------------------------------------------ --------------------- Actural Projected Actural Projected Effective ---------------------------- ------------------------------ --------------------- Plant Location FY 2000 FY 2001 5 m FY02 FY 2002 FY 2003 FY 2004 '99-'0' 99-'0' Royalty --------------------------------------------------------------------------------------- ---------------------- --------- 4034 Kansas City * * * * * * * * * 4035 Akron * * * * * * * * * 4036 Cleveland * * * * * * * * * 6007 San Antonio * * * * * * * * * 6009 Houston * * * * * * * * * 6011 Oklahoma City * * * * * * * * * 6012 Dallas * * * * * * * * * 6014 Austin * * * * * * * * * 7001 Mississauga * * * * * * * * * 7002 Toronto * * * * * * * * * 7004 Kitchener * * * * * * * * * 7007 Ottawa * * * * * * * * * 7008 Calgary * * * * * * * * * 7009 Atlantic Canada * * * * * * * * * 7010 Vancouver * * * * * * * * * 7015 Quebec * * * * * * * * * Totals 2.24% -0.46 -5.05% - 5.26% -6.76% -0.91% 0.88% -2.29% 15 Bradenton * * * * * * 18 Port St. Lucie * * * * * * 1000 Delray Beach * * * * * * 1002 Milwaukee * * * * * * 1003 Sun Praire * * * * * * 1005 Ft. Lauderdale * * * * * * 1007 WPG * * * * * * 1008 Neenah * * * * * * 1010 BCD Cargo * * * * * * 1012 Chicago * * * * * * 1016 Tampa * * * * * * 1022 * * * * * * 1026 Oskosh * * * * * * 1029 Boynton Beach * * * * * * 1030 * * * * * * 1031 Amesbury * * * * * * 1033 Copymax * * * * * * 3047 Sacramento * * * * * * 3051 * * * * * * Totals 2.24% -0.46 -5.01% -5.26% -6.76% -0.91% 10K Reported High Plant 5.87% -2.18% na 4.95% 4.95% 5.00% 1.76% 2.34% Average Plant 2.24% -0.46% na -6.76% -6.76% -0.91% 0.88% -2.29% Median Plant 7.51% 7.63% na -9.19% -9.19% -4.30% 7.57% -2.07% Low Plant 100.00% na na na na na 131.18 -100.00% Total Top 10 Plants 4.02% -3.44% na 1.29% 1.29% 1.97% 0.22% 0.49% Total Top 20 Plants 4.03% -1.98% na 0.24% 0.24% 1.21% 0.98% 0.20% Total Top 30 Plants 3.61% -1.55% na 0.09% 0.09% 0.91% 1.00% 0.24 As % of Total Plants Sales Top 10 Plants Top 20 Plants Top 30 Plants As % of Plants Number of Plants Top 10 Plants Top 20 Plants Top 30 Plants Projected Net Royalties Actual Sales ---------------------------------- ------------------------- Plant Location FY 2002 FY 2003 FY 2004 5 m FY02 5 m FY0 -------------------------------------------------------------------------------------------------------------------------- 4034 Kansas City 40,967 34,822 29,599 304,747 367,989 4035 Akron 91,869 96,463 101,286 628,731 591,558 4036 Cleveland 81,311 85,376 89,645 565,770 481,043 6007 San Antonio * * * * * 6009 Houston * * * * * 6011 Oklahoma City * * * * * 6012 Dallas * * * * * 6014 Austin * * * * * 7001 Mississauga * * * * * 7002 Toronto * * * * * 7004 Kitchener * * * * * 7007 Ottawa * * * * * 7008 Calgary * * * * * 7009 Atlantic Canada * * * * * 7010 Vancouver * * * * * 7015 Quebec * * * * * ----------------------------------- --------------------------- Totals 5,277,154 4,937,202 4,889,383 $ 42,779,499 $ 45,053,863 =========================== 15 Bradenton - - 18 Port St. Lucie - - 1000 Delray Beach - - 1002 Milwaukee - - 1003 Sun Praire - - 1005 Ft. Lauderdale - - 1007 WPG - - 1008 Neenah - - 1010 BCD Cargo - - 1012 Chicago - - 1016 Tampa - - 1022 - - 1026 Oskosh - - 1029 Boynton Beach - - 1030 - - 1031 Amesbury - - 1033 Copymax - - 3047 Sacramento * * 3051 - - --------------------------- Totals $ 42,897,611 $ 45,161,173 =========================== 10K Reported High Plant Average Plant Median Plant Low Plant Total Top 10 Plants Total Top 20 Plants Total Top 30 Plants As % of Total Plants Sales Less Canadian Exch (120,000) (60,000) (60,000) Top 10 Plants Net royalty $5,157,154 $4,877,202 $4,829,383 Top 20 Plants Top 30 Plants Eff royalty rate 5.08% 5.15% 5.15% As % of Plants Number of Plants Top 10 Plants Top 20 Plants Top 30 Plants BCT International, Inc. Actual and Projected Paper Sales Paper Sales Growth ------------------------------------------------------------------------------------------------- Actual Projected Actual ------------------------------------------------------------------------------------------------- Plant Location FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2000 FY 2001 5 m FY02 - ------------------------------------------------------------------------------------------------------------------------- 1 Fort Lauderdale * * * * * * * * * 2 Port St. Lucie * * * * * * * * * 7 Miami * * * * * * * * * 8 Orlando * * * * * * * * * 9 Tampa * * * * * * * * * 10 Jacksonville * * * * * * * * * 12 Mobile * * * * * * * * * 13 Jackson * * * * * * * * * 14 Metairie * * * * * * * * * 1010 Argentina * * * * * * * * * 2010 Holbrook * * * * * * * * * 2011 Egg Harbor * * * * * * * * * 2012 Garden City Park * * * * * * * * * 2019 College Park * * * * * * * * * 2021 Norristown * * * * * * * * * 2026 Beltsville * * * * * * * * * 2029 Norfolk * * * * * * * * * 2030 Memphis * * * * * * * * * 2033 Greensboro * * * * * * * * * 2034 Nashville * * * * * * * * * 2035 Charlotte * * * * * * * * * 2036 Syracuse * * * * * * * * * 2037 Richmond * * * * * * * * * 2038 Pittsburgh * * * * * * * * * 2039 Valley Cottage * * * * * * * * * 2040 Raleigh * * * * * * * * * 2042 Columbia * * * * * * * * * 2043 Waterbury * * * * * * * * * 2044 Philadelphia * * * * * * * * * 2046 Upper Saddle Riv * * * * * * * * * 2048 Rhode Island * * * * * * * * * 2049 Louisville * * * * * * * * * 2050 Central NJ * * * * * * * * * 2051 Merrimack * * * * * * * * * 2052 Norcross * * * * * * * * * 2053 Marietta * * * * * * * * * 2054 New York * * * * * * * * * 3009 Tucson * * * * * * * * * 3013 Costa Mesa * * * * * * * * * 3014 Laguna Hills * * * * * * * * * 3017 Phoenix East * * * * * * * * * 3019 Seattle * * * * * * * * * 3022 Colorado * * * * * * * * * 3023 Rohnert Park * * * * * * * * * 3024 Las Vegas * * * * * * * * * 3027 Albuquerque * * * * * * * * * 3028 Anaheim * * * * * * * * * 3030 San Diego * * * * * * * * * 3031 Phoenix West * * * * * * * * * 3033 Salt Lake City * * * * * * * * * 3037 Portland * * * * * * * * * 3038 Upland * * * * * * * * * 3039 San Francisco * * * * * * * * * 3040 San Marcos * * * * * * * * * 3045 Hawaii * * * * * * * * * 3048 Spokane * * * * * * * * * 3049 Concord * * * * * * * * * 3051 Gardena * * * * * * * * * 4000 Addison * * * * * * * * * 4001 Columbus * * * * * * * * * 4014 Indiana * * * * * * * * * 4017 Erlanger * * * * * * * * * 4022 Toledo * * * * * * * * * 4024 St. Louis * * * * * * * * * 4026 Rockford * * * * * * * * * 4027 Waukegan * * * * * * * * * 4028 Detroit * * * * * * * * * 4029 Minneapolis * * * * * * * * * 4031 Des Moines * * * * * * * * * 4032 Milwaukee * * * * * * * * * 4033 Brookfield * * * * * * * * * Compound Growth ------------------------------ ------------------------- Projected Actual Projected Actual Sales ------------------------------ ------------------------- ------------------------- Plant Location FY 2002 FY 2003 FY 2004 '00-'01 '00-'04 5 m FY02 5 m FY01 - ------------------------------------------------------------ ------------------------- ------------------------- 1 Fort Lauderdale * * * * * * * 2 Port St. Lucie * * * * * * * 7 Miami * * * * * * * 8 Orlando * * * * * * * 9 Tampa * * * * * * * 10 Jacksonville * * * * * * * 12 Mobile * * * * * * * 13 Jackson * * * * * * * 14 Metairie * * * * * * * 1010 Argentina * * * * * * * 2010 Holbrook * * * * * * * 2011 Egg Harbor * * * * * * * 2012 Garden City Park * * * * * * * 2019 College Park * * * * * * * 2021 Norristown * * * * * * * 2026 Beltsville * * * * * * * 2029 Norfolk * * * * * * * 2030 Memphis * * * * * * * 2033 Greensboro * * * * * * * 2034 Nashville * * * * * * * 2035 Charlotte * * * * * * * 2036 Syracuse * * * * * * * 2037 Richmond * * * * * * * 2038 Pittsburgh * * * * * * * 2039 Valley Cottage * * * * * * * 2040 Raleigh * * * * * * * 2042 Columbia * * * * * * * 2043 Waterbury * * * * * * * 2044 Philadelphia * * * * * * * 2046 Upper Saddle Riv * * * * * * * 2048 Rhode Island * * * * * * * 2049 Louisville * * * * * * * 2050 Central NJ * * * * * * * 2051 Merrimack * * * * * * * 2052 Norcross * * * * * * * 2053 Marietta * * * * * * * 2054 New York * * * * * * * 3009 Tucson * * * * * * * 3013 Costa Mesa * * * * * * * 3014 Laguna Hills * * * * * * * 3017 Phoenix East * * * * * * * 3019 Seattle * * * * * * * 3022 Colorado * * * * * * * 3023 Rohnert Park * * * * * * * 3024 Las Vegas * * * * * * * 3027 Albuquerque * * * * * * * 3028 Anaheim * * * * * * * 3030 San Diego * * * * * * * 3031 Phoenix West * * * * * * * 3033 Salt Lake City * * * * * * * 3037 Portland * * * * * * * 3038 Upland * * * * * * * 3039 San Francisco * * * * * * * 3040 San Marcos * * * * * * * 3045 Hawaii * * * * * * * 3048 Spokane * * * * * * * 3049 Concord * * * * * * * 3051 Gardena * * * * * * * 4000 Addison * * * * * * * 4001 Columbus * * * * * * * 4014 Indiana * * * * * * * 4017 Erlanger * * * * * * * 4022 Toledo * * * * * * * 4024 St. Louis * * * * * * * 4026 Rockford * * * * * * * 4027 Waukegan * * * * * * * 4028 Detroit * * * * * * * 4029 Minneapolis * * * * * * * 4031 Des Moines * * * * * * * 4032 Milwaukee * * * * * * * 4033 Brookfield * * * * * * * 5 BCT International, Inc. Actual and Projected Paper Sales Paper Sales Growth ---------------------------------------------------------------------------- ----------------------------- Actual Projected Actual ------------------------------------- ------------------------------------- ---------------------------- Plant Location FY 1999 FY 2000 FY 2001 FY 2002 FY 2003 FY 2004 FY 2000 FY 2001 5 m FY02 - ----------------------------------------------------------------------------------------------------- ----------------------------- 4034 Kansas City - * * * * * * * * 4035 Akron - * * * * * * * * 4036 Cleveland - * * * * * * * * 6007 San Antonio - * * * * * * * * 6009 Houston - * * * * * * * * 6011 Oklahoma City - * * * * * * * * 6012 Dallas - * * * * * * * * 6014 Austin - * * * * * * * * 7001 Mississauga - * * * * * * * * 7002 Toronto - * * * * * * * * 7004 Kitchener - * * * * * * * * 7007 Ottawa - * * * * * * * * 7008 Calgary - * * * * * * * * 7009 Atlantic Canada - * * * * * * * * 7010 Vancouver - * * * * * * * * 7015 Quebec - * * * * * * * * - * * * * * * * * ----------------------------------------------------------------------------- Totals $ - $13,275,000 $13,455,224 $12,557,761 $11,720,158 $10,938,423 na 1.35% 16.7% ============================================================================= 15 Bradenton $ - $ * * * * * * * * 18 Port St. Lucie - * * * * * * * * 1000 Delray Beach - * * * * * * * * 1002 Milwaukee - * * * * * * * * 1003 Sun Praire - * * * * * * * * 1005 Ft. Lauderdale - * * * * * * * * 1007 WPG - * * * * * * * * 1008 Neenah - * * * * * * * * 1010 BCD Cargo - * * * * * * * * 1012 Chicago - * * * * * * * * 1016 Tampa - * * * * * * * * 1022 - * * * * * * * * 1026 Oskosh - * * * * * * * * 1029 Boynton Beach - * * * * * * * * 1030 - * * * * * * * * 1031 Amesbury - * * * * * * * * 1033 Copymax - * * * * * * * * 3047 Sacremento - * * * * * * * * 3051 - * * * * * * * * ----------------------------------------------------------------------------- Totals $ - $13,641,000 $13,455,224 $12,557,761 $11,720,158 $10,938,423 na -1.37% 17.2% ============================================================================= 10K Reported $12,817,000 $13,881,000 $13,424,000 ===================================== High Plant $ - $ 562,184 $ 576,980 $ 538,495 $ 502,578 $ 469,056 na 2.63% na Average Plant - 152,593 154,658 144,342 134,714 125,729 na 1.35% na Median Plant - 126,770 132,394 123,563 115,322 107,630 na 4.44% na Low Plant - 9,193 73 68 64 59 na -99.21% na Total Top 10 Plants $ - $ 3,831,955 $ 3,820,878 $ 3,566,025 $ 3,328,172 $ 3,106,182 na -0.29% na Total Top 20 Plants - 6,142,096 6,192,476 5,779,438 5,393,949 5,034,173 na 0.82% na Total Top 30 Plants - 7,966,964 8,050,597 7,513,622 7,012,464 6,544,732 na 1.05% na As % of Total Plants Sales Top 10 Plants na 28.9% 28.4% 28.4% 28.4% 28.4% Top 20 Plants na 46.3% 46.0% 46.0% 46.0% 46.0% Top 30 Plants na 60.0% 59.8% 59.8% 59.8% 59.8% As% of Plants Number of Plants - 87 87 87 87 87 Top 10 Plants na 11.5% 11.5% 11.5% 11.5% 11.5% Top 20 Plants na 23.0% 23.0% 23.0% 23.0% 23.0% Top 30 Plants na 34.5% 34.5% 34.5% 34.5% 34.5% Compound Growth --------------------------- --------------------- Projected Actual Projected Actual Sales --------------------------- --------------------- ----------------------- Plant Location FY 2002 FY 2003 FY 2004 '00-'01' 00-'04 5 m FY02 5 m FY01 - ---------------------------------------------------- --------------------- ----------------------- 4034 Kansas City * * * * * * * 4035 Akron * * * * * * * 4036 Cleveland * * * * * * * 6007 San Antonio * * * * * * * 6009 Houston * * * * * * * 6011 Oklahoma City * * * * * * * 6012 Dallas * * * * * * * 6014 Austin * * * * * * * 7001 Mississauga * * * * * * * 7002 Toronto * * * * * * * 7004 Kitchener * * * * * * * 7007 Ottawa * * * * * * * 7008 Calgary * * * * * * * 7009 Atlantic Canada * * * * * * * 7010 Vancouver * * * * * * * 7015 Quebec * * * * * * * ----------------------- Totals -6.67% -6.67% -6.67% 1.35% -4.73% $5,231,871 $ 4,481,658 ======================= 15 Bradenton $ * * * 18 Port St. Lucie * * * * * 1000 Delray Beach * * * * * 1002 Milwaukee * * * * * 1003 Sun Praire * * * * * 1005 Ft. Lauderdale * * * * * 1007 WPG * * * * * 1008 Neenah * * * * * 1010 BCD Cargo * * * * * 1012 Chicago * * * * * 1016 Tampa * * * * * 1022 * * * * * 1026 Oskosh * * * * * 1029 Boynton Beach * * * * * 1030 * * * * * 1031 Amesbury * * * * * 1033 Copymax * * * * * 3047 Sacremento * * * * * 3051 * * * * * ----------------------- Totals -6.67% -6.67% -6.67% $5,293,871 $ 4,515,258 ======================= 10K Reported High Plant -6.67% -6.67% -6.67% Average Plant -6.67% -6.67% -6.67% Median Plant -6.67% -6.67% -6.67% Low Plant -6.67% -6.67% -6.67% Total Top 10 Plants -6.67% -6.67% -6.67% Total Top 20 Plants -6.67% -6.67% -6.67% Total Top 30 Plants -6.67% -6.67% -6.67% As % of Total Plants Sales Top 10 Plants Top 20 Plants Top 30 Plants As% of Plants Number of Plants Top 10 Plants Top 20 Plants Top 30 Plants BCT International, Inc. Financial History Analysis [LOGO] CAPITALINK Smart Investment Banking Comparative Summary Income Statements ($ in thousands except per share) for 6 months ended for years ended February 28/29, August 31, --------------------------------------------- ------------------------ 1997 1998 1999 2000 2001 2000 2001 --------------------------------------------- ------------------------ Royalties and Franchise Fees $ 4,852 $ 4,921 $ 5,356 $ 5,394 $ 5,267 $ 2,757 $ 2,614 Paper and Printing Sales 10,118 11,734 12,817 13,881 13,424 6,911 6,385 Sales of Franchises 40 44 87 27 46 24 22 Other Fees - - - - 262 169 173 ---------------------------------------------- ------------------------ Total Revenue $ 15,010 16,699 18,260 19,302 18,999 9,861 9,194 ---------------------------------------------- ------------------------ Cost of Paper and Printing Sales 8,823 9,857 10,939 11,574 11,605 5,877 5,527 Selling, General & Administrative 5,820 4,171 4,290 16,619 6,455 2,553 3,240 Depreciation and Amortization 247 199 186 189 232 101 114 --------------------------------------------- ----------- ------------ Total Operating Expenses 14,890 14,227 15,415 18,382 18,292 8,531 8,881 --------------------------------------------- ------------------------ Operating Income (Loss) 120 2,472 2,845 920 707 1,330 313 Interest Income (Expense) 206 321 340 336 381 100 139 Other Income (Expense) - 2 6 952 49 - - --------------------------------------------- ------------------------ Pre-Tax Income (Loss) 326 2,795 3,191 2,208 1,137 1,430 452 Income Tax (Benefit) 54 986 690 837 442 557 176 --------------------------------------------- ------------------------ Income (Loss) from Continuing Operations 272 1,809 2,501 1,371 695 873) 276 Discontinued Operations, net of Taxes (657) (244) (327) (357) (31) (31) - --------------------------------------------- ------------------------ Net Income (Loss) $ (385) $ 1,565 $ 2,174 $ 1,014 $ 664 $ 842 $ 276 ============================================= ======================== Property & Equipement Depreciation & Amortization $ 221 $ 173 $ 160 $ 163 $ 206 $ 87 $ 100 Total Depreciation & Amortization ============================================= ======================== $ 247 $ 199 $ 186 $ 189 $ 232 $ 101 $ 114 Capital Expenditures, net of Disposals (CAPEX, net) ============================================= ======================== $ 240 $ 88 $ 82 $ 262 $ 150 $ 132 $ 51 ============================================= ======================== Basic Earnings Per Share: From Continuing Operations $ 0.05 $ 0.35 $ 0.47 $ 0.26 $ 0.13 $ 0.17 $ 0.05 ============================================= ======================== From Extraordinary Items $ (0.13) $ (0.05) $ (0.06)$ 0.07) $ (0.01) $ (0.01) $ - --------------------------------------------- ------------------------ Net Income (Loss) $ (0.08) $ 0.30 $ 0.41 $ 0.19 $ 0.13 $ 0.16 $ 0.05 ============================================= ======================== Weighted Average Shares Outstanding (thousands) 5,018 $ 5,230 $ 5,323 5,257 5,214 5,231 $ 5,124 ============================================= ======================== Diluted Earnings Per Share: From Continuing Operations $ 0.05 $ 0.33 $ 0.45$ $ 0.25 $ 0.13 $ 0.17 $ 0.05 ============================================= ======================== From Extraordinary Items $ (0.13) $ 0.33 $ 0.28 $ 0.39 $ 0.19 $ 0.13 $ 0.16 ============================================= =-====================== Net Income (Loss) $ (0.08) $ (0.04) $ (0.06)$ (0.07) $ (0.01) $ (0.01) $ - ============================================= ======================== Weighted Average Shares Outstanding (thousands) 5,018 5,540 5,596 5,388 5,235 5,246 5,124 ============================================= ======================== - ------------------------------------------------------------------------------------------------------------------------------------ LTM August 31, ----------- 2001 ----------- Royalties and Franchise Fees $ 5,124 Paper and Printing Sales 12,898 Sales of Franchises 44 Other Fees 266 ----------- Total Revenue 18,332 ----------- Cost of Paper and Printing Sales 11,255 Selling, General & Administrative 7,142 Depreciation and Amortization 245 ----------- Total Operating Expenses 18,642 ----------- Operating Income (Loss (310) Interest Income (Expense) 420 Other Income (Expense) 49 ----------- Pre-tax Income (Loss) 159 Income Tax (Benefit) 61 ----------- Income (Loss) from Continuing Operations 98 Discontinued Operations, net of Taxes - ----------- Net Income (Loss) $ 98 =========== Property & Equipement Depreciation & Amortization $ 219 =========== Total Depreciation & Amortization $ 245 =========== Capital Expenditures, net of Disposals (CAPEX, net) $ 69 =========== Basic Earnings Per Share: From Continuing Operations $ 0.01 =========== From Extraordinary Items $ - =========== Net Income (Loss) $ 0.02 =========== Weighted Average Shares Outstanding (thousands) Diluted Earnings Per Share: From Continuing Operations $ 0.01 =========== From Extraordinary Items $ - =========== Net Income (Loss) $ 0.02 =========== Weighted Average Shares Outstanding (thousands) - -------------------------------------------------------------------------------- Sources of information: Company Financial Statements and Management Common Sized Summary Income Statements for 6 months ended LTM for years ended February 28/29, August 31, August 31, ----------------------------------------------- ------------------ ---------- 1997 1998 1999 2000 2001 2000 2001 2001 ----------------------------------------------- ------------------ ---------- Royalties and Franchise Fees 32.3% 29.5% 29.3% 27.9% 27.7% 28.0% 28.4% 28.0% Paper and Printing Sales 67.4% 70.3% 70.2% 71.9% 70.7% 70.1% 69.4% 70.4% Sales of Franchises 0.3% 0.3% 0.5% 0.1% 0.2% 0.2% 0.2% 0.2% Other Fees 0.0% 0.0% 0.0% 0.0% 1.4% 1.7% 1.9% 1.5% ----------------------------------------------- ------------------ ---------- Total Revenue 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% ----------------------------------------------- ------------------ ---------- Cost of Paper and Printing Sales 58.8% 59.0% 59.9% 60.0% 61.1% 59.6% 60.1% 61.4% Selling, General & Administrative 38.8% 25.0% 23.5% 34.3% 34.0% 25.9% 35.2% 39.0% Depreciation and Amortization 1.6% 1.2% 1.0% 1.0% 1.2% 1.0% 1.2% 1.3% ----------------------------------------------- ------------------ ---------- Total Operating Expenses 99.2% 85.2% 84.4% 95.2% 96.3% 86.5% 96.6% 101.7% ----------------------------------------------- ------------------ ---------- Operating Income (Loss) 0.8% 14.8% 15.6% 4.8% 3.7% 13.5% 3.4% -1.7% Interest Income (Expense) 1.4% 1.9% 1.9% 1.7% 2.0% 1.0% 1.5% 2.3% Other Income (Expense) 0.0% 0.0% 0.0% 4.9% 0.3% 0.0% 0.0% 0.3% ----------------------------------------------- ------------------ ---------- Pre-tax Income (Loss) 2.2% 16.7% 17.5% 11.4% 6.0% 14.5% 4.9% 0.9% Income Tax (Benefit) 0.4% 5.9% 3.8% 4.3% 2.3% 5.6% 1.9% 0.3% ----------------------------------------------- ------------------ ---------- Income (Loss) from Continuing Operations 1.8% 10.8% 13.7% 7.1% 3.7% 8.9% 3.0% 0.5% Discontinued Operations, net of Taxes -4.4% -1.5% -1.8% -1.8% -0.2% -0.3% 0.0% 0.0% ----------------------------------------------- ------------------ ---------- Net Income (Loss) -2.6% 9.4% 11.9% 5.3% 3.5% 8.5% 3.0% 0.5% =============================================== ================== ========== Property & Equiptment Depreciation & Amortization 1.5% 1.0% 0.9% 0.8% 1.1% 0.9% 1.1% 1.2% =============================================== ================== ========== Total Depreciation & Amortization 1.6% 1.2% 1.0% 1.0% 1.2% 1.0% 1.2% 1.3% =============================================== ================== ========== Capital Expenditures, net of Disposals (CAPEX, net) 1.6% 0.5% 0.4% 1.4% 0.8% 1.3% 0.6% 0.4% =============================================== ================== ========== - -------------------------- Sources of Information: Company Financial Statements and Management Comparative Summary Balance Sheets ($ in thousands, except per share) as of February 28/29, as of August 31, -------------------------------------------------- ------------------- Assets 1997 1998 1999 2000 2001 2000 2001 -------------------------------------------------- ------------------- Current Assets Cash & Equivalents $ 314 $ 989 $ 1,143 $ 1,906 $ 1,799 $ 1,316 $ 3,170 Accounts and Notes Receivable, net 1,641 2,418 3,252 3,293 3,568 3,100 2,043 Inventory 2,468 2,354 2,122 2,359 2,352 2,648 2,375 Deferred Income Taxes 312 919 476 482 321 408 321 Prepaid & Other 523 950 1,281 408 134 351 261 -------------------------------------------------- ------------------- Total Current Assets 5,258 7,630 8,274 8,448 8,174 7,823 8,170 Property & Equipment 1,437 1,331 1,442 1,633 1,707 1,690 1,759 Less Accumulated Depreciation (675) (794) (982) (1,104) (1,234) (1,119) (1,336) -------------------------------------------------- ----------------- Property & Equipment, net 762 537 460 529 473 571 423 Accounts and Notes Receivable, net 3,209 5,376 6,052 7,275 6,362 7,635 6,511 Deferred Income Taxes 1,569 214 246 722 925 819 809 Intangible Assets, net 337 311 284 258 232 245 219 Other Assets 94 89 90 89 24 24 24 -------------------------------------------------- ------------------- $ 11,229 $ 14,157 $ 15,406 $ 17,321 $ 16,190 $ 17,117 $ 16,156 ================================================== =================== Liabilities & Stockholders' Equity Current Liabilities Accounts Payable $ 1,032 $ 1,264 $ 844 $ 1,111 $ 597 $ 950 $ 286 Accrued Expenses 291 777 753 1,349 403 604 563 Interest Bearing Debt 49 105 113 104 86 104 86 Interest Bearing Debt, Affiliates - - - - - - - Other 272 339 311 218 167 218 167 -------------------------------------------------- ------------------- Total Current Liabilities 1,644 2,485 2,021 2,782 1,253 1,876 1,102 Long Term Interest Bearing Debt 215 539 433 330 236 271 194 Long Term Interest Bearing Debt, Affiliates - - - - - - - Other Long Term - - - 453 417 372 320 -------------------------------------------------- ------------------- Total Liabilities 1,859 3,024 2,454 3,565 1,906 2,519 1,616 Stockholders' Equity Preferred Stock 60 60 60 - - - - Common Stock 216 223 230 233 233 233 233 Paid in Capital 12,056 12,254 12,506 12,597 12,597 12,597 12,605 Accumulated Earnings (Deficit) (2,403) (845) 1,322 2,334 2,998 3,176 3,274 Treasury Stock (559) (559) (1,166) (1,408) (1,544) (1,408) (1,572) -------------------------------------------------- ------------------- Total Stockholders' Equity 9,370 11,133 12,952 13,756 14,284 14,598 14,540 -------------------------------------------------- ------------------- $ 11,229 $ 14,157 $ 15,406 $ 17,321 $ 16,190 $ 17,117 $ 16,156 ================================================== =================== Net Working Capital $ 3,614 $ 5,145 $ 6,253 $ 5,666 $ 6,921 $ 5,947 $ 7,068 ================================================== =================== Book Value per Share $ 1.73 $ 2.00 $ 2.25 $ 2.36 $ 2.45 $ 2.51 $ 2.49 ================================================== =================== - -------------------------- Sources of information: Company Financial Statements and Management Common Sized Summary Balance Sheets as of February 28/29, as of August 31, ----------------------------------------------- ------------------ Assets 1997 1998 1999 2000 2001 2000 2001 ----------------------------------------------- ------------------ Current Assets Cash & Equivalents 2.8% 7.0% 7.4% 11.0% 11.1% 7.7% 19.6% Accounts and Notes Receivable, net 14.6% 17.1% 21.1% 19.0% 22.0% 18.1% 12.6% Inventory 22.0% 16.6% 13.8% 13.6% 14.5% 15.5% 14.7% Deferred Income Taxes 2.8% 6.5% 3.1% 2.8% 2.0% 2.4% 2.0% Prepaid & Other 4.7% 6.7% 8.3% 2.4% 0.8% 2.1% 1.6% ----------------------------------------------- ------------------ Total Current Assets 46.8% 53.9% 53.7% 48.8% 50.5% 45.7% 50.6% Property & Equipment 12.8% 9.4% 9.4% 9.4% 10.5% 9.9% 10.9% Less Accumulated Depreciation -6.0% -5.6% -6.4% -6.4% -7.6% -6.5% -8.3% ----------------------------------------------- ------------------ Property & Equipment, net 6.8% 3.8% 3.0% 3.1% 2.9% 3.3% 2.6% Accounts and Notes Receivable, net 28.6% 38.0% 39.3% 42.0% 39.3% 44.6% 40.3% Deferred Income Taxes 14.0% 1.5% 1.6% 4.2% 5.7% 4.8% 5.0% Intangible Assets, net 3.0% 2.2% 1.8% 1.5% 1.4% 1.4% 1.4% Other Assets 0.8% 0.6% 0.6% 0.5% 0.1% 0.1% 0.1% ----------------------------------------------- ------------------ 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% =============================================== ================== Liabilities & Stockholders' Equity Current Liabilities Accounts Payable 9.2% 8.9% 5.5% 6.4% 3.7% 5.6% 1.8% Accrued Expenses 2.6% 5.5% 4.9% 7.8% 2.5% 3.5% 3.5% Interest Bearing Debt 0.4% 0.7% 0.7% 0.6% 0.5% 0.6% 0.5% Interest Bearing Debt, Affiliates 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Other 2.4% 2.4% 2.0% 1.3% 1.0% 1.3% 1.0% ----------------------------------------------- ------------------ Total Current Liabilities 14.6% 17.6% 13.1% 16.1% 7.7% 11.0% 6.8% Long Term Interest Bearing Debt 1.9% 3.8% 2.8% 1.9% 1.5% 1.6% 1.2% Long Term Interest Bearing Debt, Affiliates 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Other Long Term 0.0% 0.0% 0.0% 2.6% 2.6% 2.2% 2.0% ----------------------------------------------- ------------------ Total Liabilities 16.6% 21.4% 15.9% 20.6% 11.8% 14.7% 10.0% Stockholders' Equity Preferred Stock 0.5% 0.4% 0.4% 0.0% 0.0% 0.0% 0.0% Common Stock 1.9% 1.6% 1.5% 1.3% 1.4% 1.4% 1.4% Paid in Capital 107.4% 86.6% 81.2% 72.7% 77.8% 73.6% 78.0% Accumulated Earnings (Deficit) -21.4% -6.0% 8.6% 13.5% 18.5% 18.6% 20.3% Treasury Stock -5.0% -3.9% -7.6% -8.1% -9.5% -8.2% -9.7% ----------------------------------------------- ------------------ Total Stockholders' Equity 83.4% 78.6% 84.1% 79.4% 88.2% 85.3% 90.0% ----------------------------------------------- ------------------ 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% =============================================== ================== Net Working Capital 32.2% 36.3% 40.6% 32.7% 42.7% 34.7% 43.7% =============================================== ================== - -------------------------------------- Sources of information: Company Financial Statements and Management Comparative Financial Analysis ($ in thousands, except per share) as of & for 6 as of & for months ended LTM as of & for years ended February 28/29, August 31, August 31, -------------------------------------------------- -------------------- ------------ 1997 1998 1999 2000 2001 2000 2001 2001 -------------------------------------------------- -------------------- ------------ Financial Review Revenue $15,010 $16,699 $18,260 $ 19,302 $18,999 $ 9,861 $ 9,194 $18,332 Paper and Printing Sales Gross Margin $ 1,295 $ 1,877 $ 1,878 $ 2,307 $ 1,819 $ 1,034 $ 858 $ 1,643 Operating Income $ 120 $ 2,472 $ 2,845 $ 920 $ 707 $ 1,330 $ 313 $ (310) Pre-tax Income (Loss) $ 326 $ 2,795 $ 3,191 $ 2,208 $ 1,137 $ 1,430 $ 452 $ 159 Profit (Loss) from Continuing Operations $ 272 $ 1,809 $ 2,501 $ 1,371 $ 695 $ 873 $ 276 $ 98 Net Income (Loss) $ (385) $ 1,565 $ 2,174 $ 1,014 $ 664 $ 842 $ 276 $ 98 Earnings before Interest & Taxes (EBIT) $ 120 $ 2,474 $ 2,851 $ 1,872 $ 756 $ 1,330 $ 313 $ (261) Earnings before Interest, Tax, Deprec & $ 367 $ 2,673 $ 3,037 $ 2,061 $ 988 $ 1,431 $ 427 $ (16) Amort (EBITDA) Basic Earnings Per Share $ (0.08) $ 0.30 $ 0.41 $ 0.19 $ 0.13 $ 0.16 $ 0.05 $ 0.02 Diluted Earnings Per Share $ (0.08) $ 0.28 $ 0.39 $ 0.19 $ 0.13 $ 0.16 $ 0.05 $ 0.02 Total Assets $11,229 $14,157 $15,406 $ 17,321 $16,190 $17,117 $16,156 $16,156 Net Worth $ 9,370 $11,133 $12,952 $ 13,756 $14,284 $14,598 $14,540 $14,540 Tangible Net Worth $ 9,033 $10,822 $12,668 $ 13,498 $14,052 $14,353 $14,321 $14,321 Total Interest Bearing Debt $ 264 $ 644 $ 546 $ 434 $ 322 $ 375 $ 280 $ 280 Net Interest Bearing Debt $ (50) $ (345) $ (597) $ (1,472) $(1,477) $ (941) $(2,890) $(2,890) Total Capitalization $ 9,634 $11,777 $13,498 $ 14,190 $14,606 $14,973 $14,820 $14,820 Common Shares Outstanding (thousands) 5,410 5,573 5,753 5,822 5,822 5,822 5,828 5,828 Book Value per Share $ 1.73 $ 2.00 $ 2.25 $ 2.36 $ 2.45 $ 2.51 $ 2.49 $ 2.49 Tangible Book Value per Share $ 1.67 $ 1.94 $ 2.20 $ 2.32 $ 2.41 $ 2.47 $ 2.46 $ 2.46 Financial Strength Quick Ratio 1.7 2.1 3.0 2.2 4.6 2.8 5.3 5.3 Current Ratio 3.2 3.1 4.1 3.0 6.5 4.2 7.4 7.4 Total Liabilities to Net Worth 19.8% 27.2% 18.9% 25.9% 13.3% 17.3% 11.1% 11.1% Total Interest Bearing Debt to Net Worth 2.8% 5.8% 4.2% 3.2% 2.3% 2.6% 1.9% 1.9% Total Interest Bearing Debt to Total 2.7% 5.5% 4.0% 3.1% 2.2% 2.5% 1.9% 1.9% Capitalization Net Interest Bearing Debt to Total -0.5% -2.9% -4.4% -10.4% -10.1% -6.3% -19.5% -19.5% Capitalization Interest Expense to Interest Bearing Debt na na na na na na na na Total Interest Bearing Debt to EBITDA 0.7 0.2 0.2 0.2 0.3 0.3 0.7 na EBITDA to Interest Expense na na na na na na na na EBITDA less CAPEX, net to Interest Expense na na na na na na na na Effectiveness and Efficiency Accounts Receivable Turnover na 8.2 6.4 5.9 5.5 3.1 3.3 7.1 Inventory Turnover na 4.1 4.9 5.2 4.9 2.3 2.3 4.5 Asset Turnover na 1.3 1.2 1.2 1.1 0.6 0.6 1.1 Days Sales Outstanding na 44.4 56.7 61.9 65.9 59.6 56.1 51.2 Days Inventory Outstanding na 89.3 74.7 70.7 74.1 78.4 79.1 81.4 Days Payable Outstanding na 27.4 23.4 17.1 12.1 22.5 9.3 12.3 EBIT to Average Assets na 19.5% 19.3% 11.4% 4.5% na na -1.6% EBIT to Average Net Worth na 24.1% 23.7% 14.0% 5.4% na na -1.8% EBITDA to Average Assets na 21.1% 20.5% 12.6% 5.9% na na -0.1% EBITDA to Average Net Worth na 26.1% 25.2% 15.4% 7.0% na na -0.1% Net Income to Average Assets na 12.3% 14.7% 6.2% 4.0% na na 0.6% Net Income to Average Net Worth na 15.3% 18.1% 7.6% 4.7% na na 0.7% - -------------------------------------------------------------------------------- Sources of information: Company Financial Statements and Management Comparative Financial Analysis Continued ($ in thousands, except per share) as of & for 6 months ended as of & for LTM as of & for years ended February 28/29, August 31, August 31, ------------------------------------------ -------------------------- --------------- 1997 1998 1999 2000 2001 2000 2001 2001 ------------------------------------------ -------------------------- --------------- Profitability Ratios Paper and Printing Sales Gross Margin 12.8% 16.0% 14.7% 16.6% 13.6% 15.0% 13.4% 12.7% The following Ratios are as % of Revenue SG&A 38.8% 25.0% 23.5% 34.3% 34.0% 25.9% 35.2% 39.0% Operating Income 0.8% 14.8% 15.6% 4.8% 3.7% 13.5% 3.4% -1.7% Pre-tax Income (Loss) 2.2% 16.7% 17.5% 11.4% 6.0% 14.5% 4.9% 0.9% Profit (Loss) from Continuing Operations 1.8% 10.8% 13.7% 7.1% 3.7% 8.9% 3.0% 0.5% Net Income (Loss) -2.6% 9.4% 11.9% 5.3% 3.5% 8.5% 3.0% 0.5% EBIT 0.8% 14.8% 15.6% 9.7% 4.0% 13.5% 3.4% -1.4% EBITDA 2.4% 16.0% 16.6% 10.7% 5.2% 14.5% 4.6% -0.1% Growth Rates Revenue na 11.3% 9.3% 5.7% -1.6% na -6.8% -3.5% Operating Income na 1960.0% 15.1% -67.7% -23.2% na -76.5% -143.8% Pre-tax Income (Loss) na 757.4% 14.2% -30.8% -48.5% na -68.4% -86.0% Profit (Loss) from Continuing Operations na 565.1% 38.3% -45.2% -49.3% na -68.4% -85.9% Net Income (Loss) na na 38.9% -53.4% -34.5% na -67.2% -85.2% EBIT na 1961.7% 15.2% -34.3% -59.6% na -76.5% -134.5% EBITDA na 628.3% 13.6% -32.1% -52.1% na -70.2% -101.6% Basic Earnings Per Share na na 36.7% -53.7% -31.6% na -68.8% -84.6% Diluted Earnings Per Share na na 39.3% -51.3% -31.6% na -68.8% -84.6% Total Assets na 26.1% 8.8% 12.4% -6.5% na -5.6% -0.2% Net Worth na 18.8% 16.3% 6.2% 3.8% na -0.4% 1.8% Tangible Net Worth na 19.8% 17.1% 6.6% 4.1% na -0.2% 1.9% CAPEX, net na -63.3% -6.8% 219.5% -42.7% na -61.4% -54.0% Cumulative Average Growth Rate (CAGR) Statistics Revenue na 11.3% 10.3% 8.7% 6.1% na na na Operating Income na 1960.0% 386.9% 97.2% 55.8% na na na Pre-tax Income (Loss) na 757.4% 212.9% 89.2% 36.7% na na na Profit (Loss) from Continuing Operations na 565.1% 203.2% 71.5% 26.4% na na na Net Income (Loss) na na na na na na na na EBIT na 1961.7% 387.4% 149.9% 58.4% na na na EBITDA na 628.3% 187.7% 77.7% 28.1% na na na Basic Earnings Per Share na na na na na na na na Diluted Earnings Per Share na na na na na na na na Total Assets na 26.1% 17.1% 15.5% 9.6% na na na Net Worth na 18.8% 17.6% 13.7% 11.1% na na na Tangible Net Worth na 19.8% 18.4% 14.3% 11.7% na na na CAPEX, net na -63.3% -41.5% 3.0% -11.1% na na na Depreciation & Capital Spending Depreciation to CAPEX, net 92.1% 196.6% 195.1% 62.2% 137.3% 65.9% 196.1% 317.4% CAPEX, net to Revenue 1.6% 0.5% 0.4% 1.4% 0.8% 1.3% 0.6% 0.4% - -------------------------------------------------------------------------------- Sources of information: Company Financial Statements and Management BCT International, Inc. Share Price Analysis CAPITALINK Smart Investment Banking BCT Closing Price & Trading Volume History October 9, 2000 - October 9, 2001 [GRAPH] Volume Close Start End High Average Median Low Avg. Volume Median Volume - ------------------- ------------------- -------------------- --------- --------- ------------------- ------------- --------------- 9-Oct-00 $1.4375 9-Oct-01 $0.7800 10-Nov-00 $1.7500 $1.1895 $1.2500 10-Sep-01 $0.5700 6,980 2,100 - -------------------------------------------------------------------------------- Sources of information: Commodity Systems, Inc. BCT vs Comparable Company Index (1) and Russell 3000 Index October 9, 2000 - October 9, 2001 [GRAPH] BCT Comparables Russell 3000 %Change BCT Comparables Russell 3000 First Half of Period -34.8% -1.2% -20.3% Second Half of Period -29.1% 52.0% -7.0% Full Period -45.7% 49.6% -25.3% (1) Reflects the market cap weighted prices of the comparable companies utilized in the Comparable Company Analysis. - -------------------------------------------------------------------------------- Sources of information: Commodity Systems, Inc. BCT Closing Price Ranges as Percentage of Total Trading Days October 9, 2000 - October 9, 2001 [GRAPH] Price Range $0.00-$0.75 $0.76-$0.88 $0.89-$1.00 $1.01-$1.13 $1.14-$1.25 $1.26-$1.38 $1.39-$1.50 $1.51-$1.63 $1.64 + - ------------------------------------------------------------------------------------------------------------------------------------ Days in Ran 17 23 23 29 38 72 18 22 6 Percentage 6.9% 9.3% 9.3% 11.7% 15.3% 29.0% 7.3% 8.9% 2.4% - -------------------------------------------------------------------------------- Sources of information: Commodity Systems, Inc. BCT Trading Volume per Price Range as Percentage of Total Volume October 9, 2000 - October 9, 2001 [GRAPH] Price Range $0.00-$0.75 $0.76-$0.88 $0.89-$1.00 $1.01-$1.13 $1.14-$1.25 $1.26-$1.38 $1.39-$1.50 $1.51-$1.63 $1.64+ - ----------------------------------------------------------------------------------------------------------------------------------- Volume 139,300 200,200 135,900 148,700 145,100 569,300 144,000 129,400 119,200 Percentage 8.0% 11.6% 7.9% 8.6% 8.4% 32.9% 8.3% 7.5% 6.9% __________________________ Sources of information: Commodity Systems, Inc. BCT Trading Volume Ranges as a Percentage of Total Volume October 9, 2000 - October 9, 2001 [GRAPH] No volume *0**1,000 *1,001**2,500 *2,501**5,000 *5,001**10,000 *10,001**25,000 *25,001**50,000 *50,001 --------------------------------------------------------------------------------------------------------------------- Days in Range 51 44 34 29 36 37 14 3 Percentage 20.6% 17.7% 13.7% 11.7% 14.5% 14.9% 5.6% 1.2% * denotes greater than ** denotes less than ______________________ Sources of information: Commodity Systems, Inc.