EXHIBIT 16(C)(6)
Exhibit 16(C)(6) October 18, 2001
BCTI Special Committee Meeting Materials
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.
Page 1
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 ($5,710) [See Company DCF Analysis for calculation].
(3) Assumes 5,843 shares outstanding.
Sources of information: SEC Edgar filings, Multex, Inc., Bloomberg, LP,
Commodity Systems, Inc., and/or Hoovers, Inc.
Page 2
Comparable Company Analysis - Valuation Multiples - BCT International
($ 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.
Page 3
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.
Page 4
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.
Page 5
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 $14,321 31-Aug-01
- --------------------------------------------------------------------------------
Sources of information: SEC Edgar filings, Multex, Inc., Bloomberg, LP,
Commodity Systems, Inc., and/or Hoovers, Inc.
Page 6
- ------------------------------------------------------------------------------------------------------------------------------------
Consolidated Graphics, Inc Overview
- ------------------------------------------------------------------------------------------------------------------------------------
Name Consolidated Graphic Address 5858 Westheimer Officers Joe Davis Attorneys
Symbol CGX City, State Zip Houston, TX 77057 Charles White Auditors Arthur Andersen
Latest Fiscal YE 31-Mar-01 Telephone 713-787-0977 Wayne Rose Transfer Agent American Stock
Latest Rprt Per 30-Jun-01 Fax 713-787-5013 Transfer & Trust
Consolidated Graphics has bought more than 60 medium-sized printing firms since 1985. CGX, which is one of the nation's largest
commercial printers, generates most of its sales by printing items such as brochures, catalogs, and direct mail fliers. The company
also provides electronic services (online digital asset management, online purchasing) and fulfillment services.
- ------------------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------
Income and Cashflow Statement Data
- ------------------------------------------------------------------------------------------------------
($ in thousands, except per share)
Three Months Ended Fiscal Years Ended
LTM ------------------- -------------------
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
Page 7
- ------------------------------------------------------------------------------------------------------------------------------------
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
Latest Rprt Per 30-Jun-01 Fax 360-332-6352 William Paquin Trust Centre
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)
Three Months Ended Fiscal Years Ended
LTM ------------------ ------------------
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
Page 8
- ------------------------------------------------------------------------------------------------------------------------------------
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
Page 9
- ----------------------------------------------------------------------------------------------------------------------------------
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
Page 10
- -----------------------------------------------------------------------------------------------------------------------------------
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)
Six Months Ended Fiscal Years Ended
LTM ------------------ -------------------
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
Page 11
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Nine Months Ended Fiscal Years Ended
LTM ----------------- ------------------
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 & Amortization $ 656 $ 299 $ 371 $ 728 $ 556
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
Page 12
- ------------------------------------------------------------------------------------------------------------------------------------
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)
Six Months Ended Fiscal Years Ended
LTM ---------------- ------------------
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 6.90x
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 -- $-- $--
LT Growth -- na na
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Period Growth Rates
- --------------------------------------------------------------------------------
Six Months Ended Fiscal Years Ended
Aug-01 Feb-01
---------------- ------------------
Revenue -6.9% -1.4%
EBIT -87.9% -18.8%
EBITDA -79.9% -11.8%
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
Notes
FY00 & FY01 discontinued operation are losses from Company owned franchises.
FY00 extraordinary item is legal settlement.
- --------------------------------------------------------------------------------
Sources: Multex, Yahoo Finance, and Hoovers
Page 13
BCT International, Inc.
Comparable Transaction Analysis
[LOGO] CAPITALINK
Smart Investment Banking
Page 14
Comparable Transaction Analysis - Implied Value - BCT International
($ 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 ($5,710) as of Aug 31, 2001 [See Company DCF Analysis
for calculation].
(2) Assumes 5,843 shares outstanding. [See Company DCF Analysis for
calculation.]
Sources of information: SEC Edgar filings, Multex, Inc., Bloomberg, LP,
Commodity Systems, Inc., and/or Hoovers, Inc.
Page 15
Comparable Transaction Analysis - BCT International
($ 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
Page 16
BCT International, Inc.
Discounted Cash Flow Analysis
CAPITALINK
Smart Investment Banking
Page 17
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.
Page 18
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
Terminal Revenue Multiple
Discount ---------------------------------------------------
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
Terminal Revenue Multiple
Discount ------------------------------------------------------
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
Terminal Revenue Multiple
Discount ---------------------------------------------
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
Terminal Revenue Multiple
Discount ---------------------------------------------
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 $1.64
-----
- --------------------------------------------------------------------------------
All Discounted amounts have been calculated utilizing a mid-year convention.
Sources of information: Company Financials, Projections and Management.
Page 19
Discounted Cash Flow Analysis - Management Case
($ 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
Terminal EBITDA Multiple
Discount ---------------------------------------------------
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
Terminal EBITDA Multiple
Discount ---------------------------------------------------
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
Terminal EBITDA Multiple
Discount ----------------------------------------------
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
Terminal EBITDA Multiple
Discount ---------------------------------------------
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 $1.21
-----
- --------------------------------------------------------------------------------
All Discounted amounts have been calculated utilizing a mid-year convention.
Sources of information: Company Financials, Projections and Management.
Page 20
Discounted Cash Flow Analysis - Management Case
($ in thousands)
Free Cash Flows
Actual Projected
----------------------------- -----------------------------
FY ended FY ended
February 28/29 6 Mths 6 Mths February 28/29
----------------- Mar - Aug Sep - Feb -----------------
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
Terminal Perpetual Growth Rates
Discount ---------------------------------------------------
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
Terminal Perpetual Growth Rates
Discount ---------------------------------------------------
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
Terminal Perpetual Growth Rates
Discount ---------------------------------------------
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
Terminal Perpetual Growth Rates
Discount ---------------------------------------------
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 $1.39
-----
- --------------------------------------------------------------------------------
All Discounted amounts have been calculated utilizing a mid-year convention.
Sources of information: Company Financials, Projections and Management.
Page 21
Long Term and Equity Assumptions - Management Case
($ in thousands)
Actual Projected
--------------------------- --------------------------------------
FY ended FY ended
February 28/29 6 Mths 6 Mths February 28/29
--------------- Mar - Aug Sep - Feb --------------- 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.
Page 22
Operating and Working Capital Assumptions - Management Case
($ in thousands)
Actual Projected
-------------------------- --------------------------------------
FY ended FY ended
February 28/29 6 Mths 6 Mths February 28/29
-------------- Mar - Aug Sep - Feb --------------- 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 $--
========================== ==================================
- ----------
Sources of information: Company Financials, Projections and Management.
Page 23
Detailed Profit and Loss - Revised Case 1 (No Growth)
($ 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.
Page 24
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
Terminal Revenue Multiple
Discount ---------------------------------------------------
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
Terminal Revenue Multiple
Discount ------------------------------------------------------
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
Terminal Revenue Multiple
Discount ---------------------------------------------
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
Terminal Revenue Multiple
Discount ---------------------------------------------
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 $1.71
-----
- ----------
All Discounted amounts have been calculated utilizing a mid-year convention.
Sources of information: Company Financials, Projections and Management.
Page 25
Discounted Cash Flow Analysis - Revised Case 1 (No Growth)
($ in thousands)
Free Cash Flows
Actual Projected
----------------------------- -----------------------------
FY ended FY ended
February 28/29 6 Mths 6 Mths February 28/29
----------------- Mar - Aug Sep - Feb -----------------
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
Terminal EBITDA Multiple
Discount ---------------------------------------------------
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
Terminal EBITDA Multiple
Discount ---------------------------------------------------
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
Terminal EBITDA Multiple
Discount --------------------------------------------------
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
Terminal EBITDA Multiple
Discount ---------------------------------------------------
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 $1.40
-----
- --------------------------------------------------------------------------------
All Discounted amounts have been calculated utilizing a mid-year convention.
Sources of information: Company Financials, Projections and Management.
Page 26
Discounted Cash Flow Analysis - Revised Case 1 (No Growth)
($ 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
Terminal Perpetual Growth Rates
Discount ---------------------------------------------------
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
Terminal Perpetual Growth Rates
Discount ---------------------------------------------------------
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
Terminal Perpetual Growth Rates
Discount ----------------------------------------------
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
Terminal Perpetual Growth Rates
Discount -----------------------------------------------
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 $1.74
-----
- --------------------------------------------------------------------------------
All Discounted amounts have been calculated utilizing a mid-year convention.
Sources of information: Company Financials, Projections and Management.
Page 27
Long Term and Equity Assumptions - Revised Case 1 (No Growth)
($ in thousands)
Actual Projected
--------------------------- --------------------------------------
FY ended FY ended
February 28/29 6 Mths 6 Mths February 28/29
--------------- Mar - Aug Sep - Feb --------------- 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.
Page 28
Operating and Working Capital Assumptions - Revised Case 1 (No Growth)
($ in thousands)
Actual Projected
--------------------------- -------------------------------------
FY ended FY ended
February 28/29 6 Mths 6 Mths February 28/29 Terminal
--------------- Mar - Aug Sep - Feb --------------
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 FY ended
February 28/29 6 Mths 6 Mths February 28/29 Terminal
---------------- Mar - Aug Sep - Feb ---------------
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 $--
=====================================================================
- --------------------------------------------------------------------------------
Sources of information: Company Financials, Projections and Management.
Page 29
Detailed Profit and Loss - Revised Case 2 (2% Growth)
($ in thousands)
Actual Projected
----------------------------- ---------------------------------------
FY ended FY ended
February 28/29 6 Mths 6 Mths February 28/29
----------------- Mar - Aug Sep - Feb ---------------------------
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.
Page 30
Discounted Cash Flow Analysis - Revised Case 2 (2% Growth)
($ in thousands)
Free Cash Flows
Actual Projected
----------------------------- -----------------------------
FY ended FY ended
February 28/29 6 Mths 6 Mths February 28/29
----------------- Mar - Aug Sep - Feb -----------------
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
Terminal Revenue Multiple
Discount ---------------------------------------------------
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
Terminal Revenue Multiple
Discount -------------------------------------------------------
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
Terminal Revenue Multiple
Discount ---------------------------------------------
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
Terminal Revenue Multiple
Discount ---------------------------------------------
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 $1.75
-----
- --------------------------------------------------------------------------------
All Discounted amounts have been calculated utilizing a mid-year convention.
Sources of information: Company Financials, Projections and Management.
Page 31
Discounted Cash Flow Analysis - Revised Case 2 (2% Growth)
($ in thousands)
Free Cash Flows
Actual Projected
----------------------------- -----------------------------
FY ended FY ended
February 28/29 6 Mths 6 Mths February 28/29
----------------- Mar - Aug Sep - Feb -----------------
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
Terminal EBITDA Multiple
Discount ---------------------------------------------------
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
Terminal EBITDA Multiple
Discount ----------------------------------------------------
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
Terminal EBITDA Multiple
Discount ---------------------------------------------
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
Terminal EBITDA Multiple
Discount ---------------------------------------------
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 $1.50
-----
- --------------------------------------------------------------------------------
All Discounted amounts have been calculated utilizing a mid-year convention.
Sources of information: Company Financials, Projections and Management.
Page 32
Discounted Cash Flow Analysis - Revised Case 2 (2% Growth)
($ in thousands)
Free Cash Flows
Actual Projected
----------------------------- -----------------------------
FY ended FY ended
February 28/29 6 Mths 6 Mths February 28/29
----------------- Mar - Aug Sep - Feb -----------------
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
Terminal Perpetual Growth Rates
Discount ---------------------------------------------------
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
Terminal Perpetual Growth Rates
Discount ---------------------------------------------------------
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
Terminal Perpetual Growth Rates
Discount ---------------------------------------------
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
Terminal Perpetual Growth Rates
Discount ---------------------------------------------
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 $1.92
-----
- --------------------------------------------------------------------------------
All Discounted amounts have been calculated utilizing a mid-year convention.
Sources of information: Company Financials, Projections and Management.
Page 33
Long Term and Equity Assumptions - Revised Case 2 (2% Growth)
($ in thousands)
Actual Projected
---------------------------- --------------------------------------
FY ended
February 28/29 6 Mths 6 Mths February 28/29 FY ended
---------------- Mar - Aug Sep - Feb --------------- 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.
Page 34
Operating and Working Capital Assumptions - Revised Case 2 (2% Growth)
($ in thousands)
Actual Projected
--------------------------- -------------------------------------
FY ended FY ended
February 28/29 6 Mths 6 Mths February 28/29
--------------- Mar - Aug Sep - Feb -------------- 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 FY ended
February 28/29 6 Mths 6 Mths February 28/29
--------------- Mar - Aug Sep - Feb -------------- 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) $--
========================== ==================================
- --------------------------------------------------------------------------------
Sources of information: Company Financials, Projections and Management.
Page 35
Cost of Capital Calculation
($ 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%
------ ----- ----
$4,868 100.0% 22.7%
====== ===== ====
- ----------
(1) As reported by the Federal Reserve Board on a weekly-average basis for the
week ended September 28, 2001.
(2) Sourced from the Ibbotson SBBI Valuation Edition 2001 Yearbook. Sources of
information: Company Financials, Projections and Management.
Page 36
BCT International, Inc.
Adjusted Net Book Value
& Liquidation Analysis
[LOGO] CAPITALINK
Smart Investment Banking
Page 37
Adjusted Net Book Value Analysis
as of August 31, 2001
($ 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
Page 38
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
Page 39
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 (%) $3,396 47%
======================================================
- ----------
(1) Adjustments determined by discussions with Company Management.
(2) Represents the Net Present Value (NPV) of expected note payments and
collateral payments (under liquidation). See supporting schedules for more
details.
Sources of Information: Company Financial Statements and Company Management
Page 40
BCT International, Inc.
Notes Analysis - Explanation of Discounts, as of August 31, 2001
($ 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 * * * * * *
- ------------------------------------------------------------------------------------------------------
Page 41
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 $7,284
======
- ----------
(1) Adjustments determined by discussions with Company Management.
Sources of Information: Company Financial Statements and Company Management
Page 42
BCT International, Inc.
Present Value of Notes, as of August 31, 2001
($ 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 $2,245
=============================================================================================================================
- ----------
(1) Adjustments determined by discussions with Company Management.
(2) Note Payments are discounted using the Company's estimated Cost of Capital
of 22.70%.
Sources of Information: Company Financial Statements and Company Management
Page 43
BCT International, Inc.
Notes Collateral Analysis, as of August 31, 2001
($ in thousands)
Collateral Payments
Amount --------------------------------------------
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
Page 44
BCT International, Inc.
Plant Sales Growth Analysis
[LOGO] CAPITALINK
Smart Investment Banking
Page 45
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 * * * * * * * * * * *
Page 46
BCT International, Inc.
Actual and Projected Growth
System Sales Growth Compound Growth
----------------------------------------------------- -------------------
Actual Projected Actual Projected
----------------------------------------------------- -------------------
Plant Location FY 2000 FY 2001 5mFY02 FY2002 FY2003 FY2004 '99-'01 '99-'04
- ------------------------------------------------------------------------------ -------------------
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 * * * * * * * *
Paper Sales Growth
----------------------------------------------------
Actual Projected
----------------------------------------------------
Plant Location 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%
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 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
Page 47
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 Projected Net Royalties
------------------------------ ----------------- Effective ------------------------
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 * *
Page 48
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
Page 49
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 * * * * * * *
Page 50
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 $4,515,258
======================
10K Reported
High Plant -6.67% -6.67% -6.67%
Average Plant -6.67% -6.67% -6.67%
Median Plant -6.67% -6.67% -6.67%
Low Plant -6.67% -6.67% -6.67%
Total Top 10 Plants -6.67% -6.67% -6.67%
Total Top 20 Plants -6.67% -6.67% -6.67%
Total Top 30 Plants -6.67% -6.67% -6.67%
As % of Total Plants
Sales
Top 10 Plants
Top 20 Plants
Top 30 Plants
As% of Plants
Number of Plants
Top 10 Plants
Top 20 Plants
Top 30 Plants
Page 51
BCT International, Inc.
Financial History Analysis
[LOGO] CAPITALINK
Smart Investment Banking
Page 52
Comparative Summary Income Statements
($ 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
Page 53
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
Page 54
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
Page 55
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
Page 56
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