FELTON The COMPANY
1999
Sales ($912 + {5 x $168}
COGS (@ 65%)
0.65
2000
$1,752
$1,139
$2,400
$1,560
Sales ($200*12)
COGS (@ 65%)
Gross Profit
$613
35%
$840
35% Gross Profit
SG&A
EBITDA???
Net Income Before Tax
Income Taxes
Net Income
$520
30%
7%
5%
$520
22% SG&A
$320
$96
$224
0.65
13%
0.3
$93
$28
$65
BIG QUESTION: WHERE IS INTEREST EXPENSE ACCOUNTED FOR?
ALWAYS NEED TO KNOW "EBITDA" TO DETERMINE CASH FLOW AND DEBT SERVICE CAPACITY
BALANCE SHEETS
12/31/1999
Cash
Accounts Receivable
Inventory
Total Current Assets
$12
$336 168*2
$480 pg 2
$828
60 days
Fixed Assets (constant)
Deferred Assets
Total Assets
$180
$56
$1,064
12/31/2000
$12
$400 200*2
$480 pg 2
$892
$180
$56
$1,128
Notes Payable (PLUG)
Notes Payable - Chattel Mortgage
Accounts Payable
Taxes Payable
Deferred Revenue/deposits
Misc. Accruals (expand with volume)
Total Current Liabilities
$233 PLUG
$110 140-(6*5)
$24 pg 3
$28
$80
$475
$96
$315
Subordinated Loan from Officers
$112 104+8
$112
Common Stock
Retained Earnings
Total Liab. & Equity
Daily Sales
Daily COGS
Inventory DOH
A/R DOH
Inventory Turnover
A/P DOH
CURRENT RATIO
QUICK RATIO
TOTAL LIAB/TA
TOTA LIAB/EQUITY
$136
$341 276+65
$1,064
365
365
THEORETICAL BORR. BASE
EST. INTEREST EXPENSE
N/P
CHAT. MTG.
$61 PLUG
$38 110-(6*12)
$24 pg 3
$96
$136
$565
$1,128
4.8
3.1
153.8
70.0
2.4
7.7
1.7
0.7
6.6
4.3
112.3
60.8
3.3
5.6
2.8
1.3
0.75
$252
$300
11%
19%
11
27
OPERATING LEVERAGE?
0.3
HISTORICAL FINANCIAL STATEMENTS
7 mos2
1994
1995
1996
1997
1998
1999
CASH
A/R
INVENTORY
TOTAL CURRENT ASSETS
$$200
$300
$500
$$144
$288
$432
$4
$152
$400
$556
$20
$172
$520
$712
$16
$284
$656
$956
$4
$244
$672
$920
FIXED ASSETS, NET
DEFERRED ASSETS
TOTAL ASSETS
$88
$28
$616
$80
$24
$536
$72
$24
$652
$84
$28
$824
$88
$56
$1,100
$180
$56
$1,156
OVERDRAFT
N/P CHATTEL BANK
N/P MTG.
A/P
TAXES PAYABLE
MISC. ACCRUALS
TOTAL CURRENT LIAB.
$20
$104
$28
$84
$28
$24
$288
$16
$72
$$68
$28
$28
$212
$$124
$$68
$64
$32
$288
$$112
$$176
$52
$40
$380
$$148
$72
$188
$100
$76
$584
$$104
$140
$196
$88
$80
$608
SUBORDINATED LOAN OFFCR
TOTAL LIAB
$100
$388
$80
$292
$48
$336
$76
$456
$104
$688
$104
$712
COMMON STOCK
RETAINED EARNINGS
TOTAL LIAB & EQUITY
$136
$92
$616
$136
$108
$536
$136
$180
$652
$136
$232
$824
$136
$276
$1,100
$136
$308
$1,156
SALES
COGS
$824
$892
$1,036
$1,488
$1,584
$912
MATERIAL
LABOR
O/H
DEPR
TOTAL COGS
$268
$124
$144
$12
$548
33%
15%
17%
1%
67%
$284 32%
$128 14%
$76 9%
$8 1%
$496 56%
$308
$144
$168
$8
$628
GROSS PROFIT
SG&A
NET PROFIT BEFORE TAX
TAXES
NET INCOME
$276 33%
$252 31%
$24 3%
$4
$20
$396 44%
$296 33%
$100 11%
$4
$96
$408 39%
$312 30%
$96 9%
$24
$72
2.26
1.50
199.8
88.6
1.83
55.9
1.74
0.69
0.63
1.70
2.44
1.36
211.9
58.9
1.72
50.0
2.04
0.68
0.54
1.20
$150
17
11
5
53
7.35
2.88
$108
8
8
116 13%
2.52
0.76
Daily Sales
Daily COGS
Inventory DOH
A/R DOH
Inventory Turnover
A/P DOH
CURRENT RATIO
QUICK RATIO
TOTAL LIAB/TA
TOTA LIAB/EQUITY
365
365
THEORETICAL BORR. BASE
EST. INTEREST EXPENSE
N/P
CHAT. MTG.
EBITDA
TOTAL LIAB./EBITDA
NOTES PAYABLE/EBITDA
0.75
11%
19%
6%
30%
14%
16%
1%
61%
$480
$236
$232
$8
$956
32%
16%
16%
1%
64%
32%
16%
15%
1%
64%
$300
$84
$120
$12
$516
$532 36%
$460 31%
$72 5%
$20
$52
$572 36%
$508 32%
$64 4%
$20
$44
$396
$284
$112
2.84
1.72
232.5
53.6
1.57
39.5
1.93
0.54
0.52
1.06
4.08
2.62
198.5
42.2
1.84
67.2
1.87
0.51
0.55
1.24
4.34
2.77
236.6
65.4
1.54
67.8
1.64
0.51
0.63
1.67
4.34 210 DAYS
2.46 210 DAYS
273.5
56.2
0.77
79.8
1.51
0.41
0.62
1.60
$114
14
14
118 11%
2.86
1.05
$129
12
12
92
4.94
1.21
$213
30
16
14
110
6.26
2.00
$183
6%
$508
$252
$236
$16
$1,012
7%
$112