Exhibit 1

GAINESBORO MACHINE TOOLS CORP.

Consolidated Income Statements (in thousands of dollars, except per-share data)

For the Years Ended December 31,

1989
2003
Net sales
Cost of sales
Gross profit

572,175
360,498
211,677

815,979
501,458
314,522

Research & development

Selling, general, & administrative
Restructuring costs
Operating profit (loss)

51,785
153,314
43,632
(37,054)

70,545
223,634
0
20,343

Other income (expense)

Income (loss) before taxes
Income taxes (benefit)

(3,000)
(40,054)
827

1,065
21,408
8,415

($40,881)

$12,993

Earnings (loss) per share

Dividends per share

($3.31)
$0.78

$0.69
$0.25

Shares Outstanding (backed out of Net income and EPS)

12,351

18,854

Net income (loss)

Depreciation in SG&A. Find as % of SG&A from depr in ex. 8

Interest expense hidden in Other income (expense)
Don't worry about 2005 projections. Re-project

Ended December 31,

Projected
2005

2004
$

756,638
498,879
257,759
75,417
231,008
89,411
(138,077)
(3,458)
(141,534)
(750)

%Sales

870,000
549,750
320,250

100.0%
63.2%
36.8%

77,250
211,500
0
31,500

8.9%
24.3%
0.0%
3.6%

(4,200)
27,300
9,282

($140,784)

$18,018

($7.57)
$0.25

$0.98
$0.39

-0.5%
3.1%
1.1%
2.1%

18,598

SG&A+Depr
Depr
SG&A
SG&A % sales

211,500
22,500
189,000
21.7%

15% < Sales Increase

Sales Increase

Exhibit 2
GAINESBORO MACHINE TOOLS CORP.
Consolidated Balance Sheets (in thousands of dollars)
For the years ended
December 31st
2003
2004
Cash & equivalents
Accounts receivable
Inventories
Prepaid expenses
Other

Total current assets

Property, plant, & equipment
Less depreciation
Net property, plant, & equipment
Intangible assets
Other assets
Total assets
Bank loans
Accounts payable
Current portion of long-term debt
Accruals and other
Total current liabilities

13,917
208,541
230,342
14,259
22,184

22,230
187,235
203,888
13,016
20,714

489,242

447,082

327,603
167,414
160,190
9,429
15,723

358,841
183,486
175,355
2,099
17,688

674,583

642,223

34,196
36,449
300
129,374
200,318

71,345
34,239
150
161,633
267,367

Deferred taxes
Long-term debt
Deferred pension costs
Other liabilities
Total liabilities

16,986
9,000
44,790
2,318
273,411

13,769
8,775
64,329
5,444
359,683

Common stock, $1 par value

Capital in excess of par
Cumulative translation adjustment
Retained earnings
Less treasury stock at cost:
1990--256,151; 1991--255,506
Total shareholders' equity

18,855
107,874
(6,566)
291,498

18,855
107,907
20,208
146,065

(10,490)
401,172

(10,494)
282,541

Total liabilities & equity

674,583

642,223

Do not treat bank loans, current portion, and ltd separately. Just forecase as plug

Debt

$ 43,495.50

$ 80,269.50

Projected
2005
$

25,665
217,510
217,221
15,011
21,000

% Sales
3.0%
25.0%
25.0%
1.7%
2.4%

496,407
410,988
205,530
205,458
1,515
17,969
$

721,350

74,981
37,527
1,515
183,014
297,037
16,526
30,021
70,134
7,505
421,224
18,835
107,889
26,990
156,875
(10,464)
300,126

47.2%
23.6%
23.6%
0.2%
2.1%

4.3%
21.0%

1.9%
8.1%
0.9%

721,350

$ 106,517.75

Exhibit 3
GAINESBORO MACHINE TOOLS CORP.
Economic Indicators and Projections
(all figures are percentages)

Three-month Treasury bill rate (at auction)

Ten-year Treasury note yield
AAA corporate bond rate
Percent change in:
Real gross domestic product
Producer prices, finished goods
Industrial production
Consumption of durable goods
Consumer spending
GDP deflator

2001
3.4
5.0
7.1

0.8
2.0
(3.4)
4.3
2.5
2.4

2002
1.6
4.6
6.5

1.9
(1.3)
(0.6)
6.5
3.1
1.7

2003
1.0
4.0
5.7

3.0
3.2
0.3
7.4
3.3
1.8

Sources of data: Value Line Investment Survey , August 26, 2005; U.S. Economic Outlook , Global Insight, September 200

2004
1.4
4.3
5.6

2005
3.2
4.3
5.3

Projected
2006
4.2
4.8
5.9

4.3
3.5
4.5
6.0
3.5
2.1

3.3
1.2
3.7
2.4
2.9
1.9

2.9
(0.2)
3.4
4.2
2.9
1.7

Outlook , Global Insight, September 2004.

2007
4.7
5.7
6.8

3.2
0.1
4.8
4.5
2.8
1.9

Exhibit 4
GAINESBORO MACHINE TOOLS CORP.
Stockholder Comparative Data, 1994 and 2004
(thousands of shares)
1994
Shares
Percentage
Founders' families
Employees and families
Institutional investors
Growth-oriented
Value-oriented
Individual investors
Long-term; retirement
Short-term; trading-oriented
Other; unknown
Total

2004
Shares

2,390
3,677

13%
20%

2,421
3,155

2,390
1,471

13%
8%

1,138
2,421

6,803
919
735

37%
5%
4%

4,806
2,421
2,239

18,385

100%

18,600

2004
Percentage
13%
17%
6%
13%
26%
13%
12%
100%

Exhibit 5
GAINESBORO MACHINE TOOLS CORP.
Per Share Financial & Stock Data*

Sales/
share

Year
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004

14.52
16.00
22.25
25.64
27.19
30.06
31.66
37.71
40.69
48.23
43.59
42.87
41.48
45.52
43.28
40.68

Stock price
EPS~
$

0.45 $
0.74
0.89
1.59
2.29
2.59
2.61
2.69
2.56
3.58
2.79
0.65
0.35
(3.25)
0.69
(7.57)

DPS~
0.18
0.22
0.27
0.31
0.40
0.57
0.72
0.81
0.86
0.92
1.03
1.03
1.03
0.77
0.25
0.25

CPS~
$

0.97 $
1.29
1.43
2.05
2.83
3.25
3.34
3.60
3.62
4.81
4.25
2.23
2.00
2.86
1.99
(0.97)

Adjusted for 3-for-2 stock split in January 1995 and 50 percent stock dividend in June 1997.

~ EPS: Earnings Per Share;CPS: Cash earnings per Share; DPS: Dividend per Share
nmf = not a meaningful figure

High
20.37
21.11
21.23
18.50
22.48
23.84
26.70
29.43
39.74
40.98
38.74
47.19
40.23
30.75
71.88
39.88

Stock price
Low
$

9.69
10.18
8.20
10.18
12.17
18.01
18.25
19.50
20.12
27.32
21.36
29.55
26.82
22.13
50.74
18.38

Avg.
$

14.48
14.85
13.50
13.35
18.36
21.00
22.73
24.23
29.48
33.98
31.82
36.81
31.26
26.45
61.33
29.15

Avg.
P/E

Payout
ratio

32.4
20.2
15.1
8.4
8.0
8.1
8.7
9.0
11.5
9.5
11.4
57.0
89.9
nmf
88.2
nmf

40%
30%
30%
19%
17%
22%
27%
30%
34%
26%
37%
160%
297%
nmf
35%
nmf

Shares
Avg. outstanding
yield (millions)
1.2%
1.5%
2.0%
2.3%
2.2%
2.7%
3.1%
3.4%
2.9%
2.7%
3.2%
2.8%
3.3%
2.9%
0.4%
0.9%

15.49
15.58
16.04
17.87
18.08
18.39
18.76
18.76
18.78
18.88
18.66
18.66
18.66
18.85
18.85
18.60

Exhibit 6
GAINESBORO MACHINE TOOLS CORP.
Comparative Industry Data
(complied from data available as of August 2005)
Annual growth rate
of cash flow (%)

Sales ($mm)
Gainesboro Machine Tools Corp.

Last 5
years

Next 3-5
years

504

(1.5)

15.0

CAD/CAM companies (software and hardware)

Autodesk, Inc.
Ansys, Inc.
Cadence Design
Intergraph Corp.
Mentor Graphics
Moldflow Corp.
Parametric Technology Corp.
Synopsys, Inc.

1,234
135
1,198
551
711
49
660
1,092

4.5
16.5
(1.5)
(8.0)
4.5
nmf
(6.5)
6.5

10.5
13.0
6.0
12.0
2.0
11.5
6.0
6.0

Electrical-industrial equipment manufacturers

Cooper Industries, Inc.
Emerson Electric Company
Hubbell Inc.
Thomas & Betts Corp.

4,463
15,615
1,993
1,516

1.5
2.5
5.0
(10.0)

3.0
3.5
6.0
5.0

976
1,334
774
2,407

(21.5)
2.5
(15.5)
5.0

12.5
10.0
(2.5)
3.5

Machine tool manufacturers

Actuant Corp.
Lincoln Eletric Holdings, Inc.
Milacron, Inc.
Snap-On Inc.
nmf = not a meaningful figure
1

Based on book values.

Source of data: Value Line Investment Survey , August 2005.

Current
payout
ratio (%)

Current
Insider
Debt/
dividend
ownerP/E
1
yield (%) equity (%) ship (%) ratio (x)

0.0

0.0

28.0

30.0

nmf

6.0
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.3
0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
24.7
0.2
65.5
0.0
0.0
0.0

3.2
4.4
3.5
3.1
5.9
15.4
5.4
5.6

25.3
23.3
21.4
25.7
21.9
36.2
33.4
26.5

39.0
54.0
52.0
0.0

2.4
2.6
3.0
0.0

30.6
43.3
21.1
60.2

1.0
0.8
2.9
2.4

16.4
20.5
17.6
17.7

0.0
32.0
0.0
71.0

0.0
2.2
0.0
3.1

180.8
28.4
468.1
18.3

5.9
5.2
4.6
3.0

19.1
15.0
nmf
22.9

Exhibit 7
GAINESBORO MACHINE TOOLS CORP.
Selected Healthy Companies witth High- and Zero-Dividend Payouts
(complied from data available as of August 2005)

Industry

Expected return
on total capital
(next 3-5 years)

High-Payout Companies
Crescent Real Estate Equities Co.
Equity Office Properties Trust
Frontline, Ltd.
Scudder High Income Trust
TEPPCO Partners, L.P.
UIL Holdings
Zero-Payout Companies
Amgen Inc.
Cisco Systems, Inc.
Coach, Inc.
eBay Inc.
Oracle Corporation
Research in Motion Limited
Yahoo! Inc.

Real estate investment trust

Real estate investment trust
Oil transport
Investment manmfgement
Pipeline operatons
Electric utility

5.0
5.5
20.0
nmf
12.0
4.5

Biotechnology
Network systems
Luxury retail
Internet auction
Software
Telecommunications
Internet/media

17.5
49.0
22.5
26.0
31.0
13.5
14.5

Source: Value Line Investment Survey , 2005.

Expected growth
rate of dividends
(next 3-5 years)

nmf
nmf
9.0
nmf
3.5
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0

Current
dividend
payout

Current
dividend
yield

Expected growth
rate of sales
(next 3-5 years)

Current
P/E
ratio

123.0
96.6
115.0
96.4
104.0
112.0

8.9
7.2
35.3
9.2
6.7
6.0

nmf
nmf
(5.0)
nmf
5.0
5.5

12.4
nmf
3.2
nmf
24.3
18.7

0.0
0.0
0.0
0.0
0.0
0.0
0.0

0.0
0.0
0.0
0.0
0.0
0.0
0.0

18.5
16.0
20.5
32.0
14.5
30.0
31.0

26.5
21.6
25.8
74.7
17.9
nmf
nmf

Exhibit 8
GAINESBORO MACHINE TOOLS CORP.
Projected Sources and Uses Statement (in millions of dollars)
Assumptions:
1. Sales Growth Rate:
2. Net Income as % of Sales
3. Dividend Payout Ratio

2005

2006

2007

15%
2.1%
40.0%

15%
4.0%
40.0%

15%
5.0%
40.0%

2005

2006

2007

Projections

Sales

870.1

1,000.7

1,150.8

Sources:
Net income
Depreciation
Total

$
$
$

18.1
22.5
40.6

$
$
$

40.0
25.5
65.5

$
$
$

57.5
30.0
87.5

Uses:
Capital expend.
Change in Working capital
Total

$
$
$

43.8
19.5
63.3

$
$
$

50.4
22.4
72.8

$
$
$

57.5
25.8
83.3

Excess cash/(Borrowing needs)

Dividend

$
$

(22.7) $
7.2 $

(7.3) $
16.0 $

4.2
23.0

After dividend
Excess cash/(Borrowing needs)

(29.9) $

(23.3) $

(18.8)

*Ignoring the effects of borrowings on interest and amortization.

2008

2009

2010

2011

15%
5.5%
40.0%

15%
6.0%
40.0%

15%
5.6%
40.0%

15%
8.0%
40.0%

2008

2009

2010

1,323.4

1,521.9

$
$
$

72.8
34.5
107.3

$
$
$

91.3
40.5
131.8

$
$
$

66.2
29.6
95.8

$
$
$

$
$

11.5
29.1

$
$

(17.6) $

1,750.1

Total
2005-11

2011
$

2,012.7

9,629.6

$
$
$

98.0 $
46.5 $
144.5 $

160.0
52.5
212.5

$
$
$

537.8
252.0
789.8

68.5
34.0
102.4

$
$
$

78.8 $
38.5 $
117.3 $

90.6
44.3
134.9

$
$
$

455.7
214.1
669.8

29.4
36.5

$
$

27.2 $
39.2 $

77.6
64.0

$
$

120.0
215.1

(7.2) $

(12.0) $

13.6

(95.1)

Financial Model

1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40

A
B
C
Model Drivers (% sales unless otherwise noted)
Historical
2002
2003
Income Statement Assumptions
Sales Growth (not % sales)
Gross Margin (COGS/net sales) (not % sales)
Depreciation expense (not % sales)
R&D
SG&A
Interest rate on debt
Tax Rate
Shares outstanding
Dividend Policy

2004

Balance Sheet Assumptions

Cash & equivalents
Accounts receivable
Inventories
Prepaid expenses
Other
Cap. Ex. (not % sales)
Intangible assets
Other assets
Accounts payable
Accruals and other
Deferred taxes
Deferred pension costs
Other liabilities
Common stock, $1 par value
Capital in excess of par
Cumulative translation adjustment
Treasury stock at cost
Maximum D/E Ratio Policy

Page 20 of 34

Financial Model

E
F
G
H
I
J
K
1
2
Assumptions
3
2005
2006
2007
2008
2009
2010
2011
4
5
15%
15%
15%
15%
15%
15%
15%
6
63.2%
60.3%
58.8%
58.0%
57.3%
57.9%
54.3%
7
22,500
25,500
30,000
34,500
40,500
46,500
52,500
8
8.9%
8.9%
8.9%
8.9%
8.9%
8.9%
8.9%
9
21.7%
21.7%
21.7%
21.7%
21.7%
21.7%
21.7%
10
8%
8%
8%
8%
8%
8%
8%
11
34%
34%
34%
34%
34%
34%
34%
12
18,600
18,600
18,600
18,600
18,600
18,600
18,600
13
40%
40%
40%
40%
40%
40%
40%
14
15
16
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
3.0%
17
25.0%
25.0%
25.0%
25.0%
25.0%
25.0%
25.0%
18
25.0%
25.0%
25.0%
25.0%
25.0%
25.0%
25.0%
19
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
1.7%
20
2.4%
2.4%
2.4%
2.4%
2.4%
2.4%
2.4%
21
22
43,799
50,369
57,538
66,168
68,484
78,757
90,570
23
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
0.2%
24
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
2.1%
25
26
4.3%
4.3%
4.3%
4.3%
4.3%
4.3%
4.3%
27
21.0%
21.0%
21.0%
21.0%
21.0%
21.0%
21.0%
28
29
1.9%
1.9%
1.9%
1.9%
1.9%
1.9%
1.9%
30
8.1%
8.1%
8.1%
8.1%
8.1%
8.1%
8.1%
31
0.9%
0.9%
0.9%
0.9%
0.9%
0.9%
0.9%
32
33
18,835
18,835
18,835
18,835
18,835
18,835
18,835
34
107,889
107,889
107,889
107,889
107,889
107,889
107,889
35
26,990
26,990
26,990
26,990
26,990
26,990
26,990
36
(10,464)
(10,464)
(10,464)
(10,464)
(10,464)
(10,464)
(10,464)
37
38
40%
39 NOTE: Unshaded numbers represent model inputs. The gray-shaded values reference the cells to their left.
40

Page 21 of 34

Financial Model

41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105

A
Amounts in $000

Net sales
Cost of sales
Gross profit

D
Income Statements

Historical
2002
2003
2004
$ 858,263 $ 815,979 $ 756,638
540,747
501,458
498,879
317,516
314,522
257,759

Depreciation
Research & development
Selling, general, & administrative
Restructuring costs
Operating profit (loss)

Included in SG&A
77,678
70,545
75,417
229,971
223,634
231,008
65,448
89,411
(55,581)
20,343
(138,077)

Interest Expense
Other income (expense)
Income (loss) before taxes
Income taxes (benefit)

Included in Other income (exp)

(4,500)
1,065
(3,458)
(60,081)
21,408
(141,534)
1,241
8,415
(750)

Net income (loss)

$ (61,322) $ 12,993

Shares outstanding
Earnings (loss) per share
Dividends per share

$
$

18,854
18,854
(3.25) $
0.69
0.77 $
0.25

Addition to retained earnings

$ (75,772) $

8,353

$ (140,784)

$
$

18,598
(7.57)
0.25

$ (145,433)
Balance Sheets

Cash & equivalents

Accounts receivable
Inventories
Prepaid expenses
Other
Total current assets
Property, plant, & equipment
Less depreciation
Net property, plant, & equipment
Intangible assets
Other assets

Historical
2002
2003
2004
$ 13,917 $ 22,230
208,541
187,235
230,342
203,888
14,259
13,016
22,184
20,714
489,242
447,082
327,603
167,414
160,190
9,429
15,723

358,841
183,486
175,355
2,099
17,688

$ 674,583

$ 642,223

Accounts payable
Accruals and other
Total current liabilities

36,449
129,374
165,822

34,239
161,633
195,872

Deferred taxes
Debt (PLUG)
Deferred pension costs
Other liabilities
Total liabilities

16,986
43,496
44,790
2,318
273,411

13,769
80,270
64,329
5,444
359,683

Common stock, $1 par value

Capital in excess of par
Cumulative translation adjustment
Retained earnings
Less treasury stock at cost:
1990--256,151; 1991--255,506
Total shareholders' equity

18,855
107,874
(6,566)
291,498

18,855
107,907
20,208
146,065

(10,490)
401,172

(10,494)
282,541

Total assets

Total liabilities & equity

Debt / Equity ratio

$ 674,583
11%

$ 642,223
28%

Page 22 of 34

Financial Model

E
41
42
43
44
45
46
47
48
49
50
51
52
53
54
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
76
77
78
79
80
81
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96
97
98
99
100
101
102
103
104
105

G
Income Statements

Pro forma
2005
2006
2007
2008
2009
2010
2011
$ 870,133 $ 1,000,653 $ 1,150,751 $ 1,323,364 $1,521,868 $ 1,750,149 $ 2,012,671
549,834
603,394
676,642
767,551
872,031
1,013,336
1,092,880
320,299
397,259
474,109
555,813
649,838
736,813
919,791
22,500
77,262
189,029
31,508

25,500
88,851
217,383
65,525

30,000
102,179
249,991
91,940

34,500
117,506
287,489
116,318

40,500
135,131
330,613
143,594

46,500
155,401
380,205
154,707

52,500
178,711
437,235
251,344

7,167
24,341
8,276

9,224
56,301
19,142

11,754
80,186
27,263

14,219
102,098
34,713

16,406
127,187
43,244

18,593
136,114
46,279

20,128
231,216
78,614

$ 16,065

37,159

52,923

67,385

83,944

89,835

152,603

$
$

18,600
0.86
0.35

$
$

18,600
2.00
0.80

$
$

18,600
2.85
1.14

$
$

18,600
3.62
1.45

$
$

18,600
4.51
1.81

$
$

18,600
4.83
1.93

$
$

18,600
8.20
3.28

9,639

22,295

31,754

40,431

50,366

53,901

91,562

Balance Sheets
2005
$ 25,669 $
217,543
217,254
15,013
21,004
496,483
402,640
205,986
196,654
1,516
17,972
$ 712,624

2006
29,519 $
250,175
249,843
17,265
24,154
570,955

Pro forma
2007
2008
2009
2010
2011
33,947 $
39,039 $ 44,895 $
51,629 $
59,374
287,701
330,856
380,484
437,557
503,190
287,319
330,417
379,979
436,976
502,523
19,855
22,833
26,258
30,196
34,726
27,777
31,944
36,736
42,246
48,583
656,599
755,089
868,352
998,605
1,148,395

453,008
231,486
221,522
1,743
20,668

510,546
261,486
249,060
2,005
23,768

576,714
295,986
280,728
2,305
27,333

645,198
336,486
308,712
2,651
31,434

723,955
382,986
340,969
3,049
36,149

814,525
435,486
379,039
3,506
41,571

931,432

$ 1,065,455

$1,211,149

$ 1,378,771

$ 1,572,511

814,889

37,532
183,042
220,575

43,162
210,499
253,661

49,636
242,073
291,710

57,082
278,384
335,466

65,644
320,142
385,786

75,491
368,163
443,654

86,815
423,388
510,202

16,529
98,916
70,144
7,506
413,670

19,008
131,672
80,666
8,632
493,640

21,859
162,166
92,766
9,927
578,428

25,138
193,320
106,681
11,416
672,021

28,909
216,841
122,683
13,129
767,348

33,245
247,987
141,085
15,098
881,070

38,232
255,203
162,248
17,363
983,248

18,835
107,889
26,990
155,704

18,835
107,889
26,990
177,999

18,835
107,889
26,990
209,753

18,835
107,889
26,990
250,184

18,835
107,889
26,990
300,550

18,835
107,889
26,990
354,451

18,835
107,889
26,990
446,012

(10,464)
298,954

(10,464)
321,249

(10,464)
353,003

(10,464)
393,434

(10,464)
443,800

(10,464)
497,701

(10,464)
589,263

$ 712,624
33%

814,889
41%

931,432
46%

$ 1,065,455
49%

$1,211,149
49%

Page 23 of 34

$ 1,378,771
50%

$ 1,572,511
43%

Financial Model

A
106
107
108
109
110
111
112
113
114
115
116
117
118
119
120
121
122
123
124
125
126
127
128
129
130
131
132
133
134
135
136
137
138
139
140
141
142
143
144
145
146
147
148
149
150
151
152
153
154
155
156
157

Debt Calculation
Required Assets
Liabilities and Equity (NO PLUG)
Debt (extra cash) balance

Pessimistic Sales
Optimistic Sales

Data Tables for Sensitivity Analysis: See "Sensitivity Analysis & Graphs" Workshee
10%
15%

Minimum Dividend
Middle Dividend
Maximum Dividend

98,916
0%
20%
40%
131,672
0%
20%
40%
162,166
0%
20%
40%
193,320
0%
20%
40%
216,841
0%
20%
40%
247,987
0%
20%
40%
255,203
0%
20%
40%

0%
20%
40%

2005 Debt
10%
84,922
87,963
90,972
2006 Debt
10%
95,669
105,660
115,476
2007 Debt
10%
98,882
118,599
137,818
2008 Debt
10%
98,494
130,370
161,178
2009 Debt
10%
86,420
133,090
177,814
2010 Debt
10%
80,238
142,532
201,650
2011 Debt
10%
40,223
127,493
209,879

15%
92,316
95,634
98,916
15%
109,448
120,656
131,672
15%
116,993
139,862
162,166
15%
118,012
156,285
193,320
15%
102,962
161,058
216,841
15%
91,022
171,441
247,987
15%
27,030
144,175
255,203

Page 24 of 34

Financial Model

E
F
G
H
I
J
K
106
107
108
109
110 $ 712,624 $ 814,889 $
931,432 $ 1,065,455 $1,211,149 $ 1,378,771 $ 1,572,511
111 613,708
683,217
769,266
872,136
994,307
1,130,784
1,317,308
112 $ 98,916 $ 131,672 $
162,166 $ 193,320 $ 216,841 $ 247,987 $ 255,203
113
114
Data Tables
115for Sensitivity Analysis: See "Sensitivity Analysis & Graphs" Worksheet
116 Note: This is completely flexible. For example, if you change the 10% for the pessimistic
117 sales figure it will change all sensitivity tables and update the graphs (and their titles) in the
118 SA&G worksheet (next page).
119
120 Additionally, updating the "Maximum D/E Ratio policy" above will update the conditional
121 formatting above, as well as on the SA&G worksheet (next page).
122
123
2005 Debt / Equity
124
33%
10%
15%
125
0%
28%
30%
126
20%
29%
32%
127
40%
31%
33%
128
2006 Debt / Equity
129
41%
10%
15%
130
0%
28%
32%
131
20%
32%
36%
132
40%
36%
41%
133
2007 Debt / Equity
134
46%
10%
15%
135
0%
26%
29%
136
20%
33%
37%
137
40%
40%
46%
138
2008 Debt / Equity
139
49%
10%
15%
140
0%
22%
25%
141
20%
32%
36%
142
40%
43%
49%
143
2009 Debt / Equity
144
49%
10%
15%
145
0%
17%
18%
146
20%
29%
32%
147
40%
43%
49%
148
2010 Debt / Equity
149
50%
10%
15%
150
0%
14%
14%
151
20%
28%
30%
152
40%
45%
50%
153
2011 Debt / Equity
154
43%
10%
15%
155
0%
6%
3%
156
20%
22%
21%
157
40%
41%
43%

Page 25 of 34

Debt Level at 10% Sales Growth v. 0%, 20%, 40% Payout Ratios
Debt Level (in $1,000)
Dividend Policy
2005
2006
2007
2008
2009
Dividend: 0%
$ 84,922 $ 95,669 $ 98,882 $ 98,494 $ 86,420
Dividend: 20%
$ 87,963 $ 105,660 $ 118,599 $ 130,370 $ 133,090
Dividend: 40%
$ 90,972 $ 115,476 $ 137,818 $ 161,178 $ 177,814
Debt Ratio at 10% Sales Growth v. 0%, 20%, 40% Payout Ratios
Debt / Equity Ratio
Dividend Policy
2005
2006
2007
2008
Dividend: 0%
28%
28%
26%
22%
Dividend: 20%
29%
32%
33%
32%
Dividend: 40%
31%
36%
40%
43%

2009
17%
29%
43%

Debt Level at 10% Sales Growth v.

0%, 20%, 40% Payout Ratios
$250,000

$200,000

$150,000

$100,000

$50,000

$2005

2006
Dividend: 0%

2007

2008
Dividend: 20%

2009

2010

Dividend: 40%

Debt Level at 15% Sales Growth v. 0%, 20%, 40% Payout Ratios
Debt Level (in $1,000)
Dividend Policy
2005
2006
2007
2008

2009

Dividend: 0%
Dividend: 20%
Dividend: 40%

$
$
$

92,316
95,634
98,916

$ 109,448
$ 120,656
$ 131,672

$ 116,993
$ 139,862
$ 162,166

$ 118,012
$ 156,285
$ 193,320

$ 102,962
$ 161,058
$ 216,841

Debt Ratio at 15% Sales Growth v. 0%, 20%, 40% Payout Ratios
Debt / Equity Ratio
Dividend Policy
2005
2006
2007
2008
Dividend: 0%
30%
32%
29%
25%
Dividend: 20%
32%
36%
37%
36%
Dividend: 40%
33%
41%
46%
49%

2009
25%
36%
49%

Debt Level at 15% Sales Growth v.

0%, 20%, 40% Payout Ratios
$300,000

$250,000

$200,000

$150,000

$100,000

$50,000

$2005

2006
Dividend: 0%

2007

2008
Dividend: 20%

2009
Dividend: 40%

2010

DO NOT LOO
Sets the red line on the
graphs.
DO NOT CHANGE HERE
Adjust on financial-model
page in model drivers section
Max Debt-Ratio Policy

2005
40%

2006
40%

2007
40%

2008
40%

Chart and Table Titles

Debt Level at 10% Sales Growth v.
Debt Ratio at 10% Sales Growth v.

Debt Level at 10% Sales Growth v.0%, 20%, 40% Payout

Debt Ratio at 10% Sales Growth v.0%, 20%, 40% Payout

Debt Level at 15% Sales Growth v.

Debt Ratio at 15% Sales Growth v.

Debt Level at 15% Sales Growth v.0%, 20%, 40% Payout

Debt Ratio at 15% Sales Growth v.0%, 20%, 40% Payout

0%, 20%, 40% Payout Ratios

Line Break char

10

0)
2010
2011
$ 80,238 $ 40,223
$ 142,532 $ 127,493
$ 201,650 $ 209,879

o
2010
14%
28%
45%

2011
6%
22%
41%

wth v.

Debt Ratio at 10% Sales Growth v.

0%, 20%, 40% Payout Ratios
50%
45%
40%
35%
30%
25%
20%
15%
10%
5%

2010

0%
2005

2011

vidend: 40%

2006
Dividend: 0%

0)
2010

2011

2007
Dividend: 20%

2008

2009

Dividend: 40%

2010
Max Debt-Ratio Policy

$ 91,022
$ 171,441
$ 247,987

$ 27,030
$ 144,175
$ 255,203

o
2010
14%
30%
50%

2011
3%
21%
43%

wth v.

vidend: 40%

Debt Ratio at 15% Sales Growth v.

0%, 20%, 40% Payout Ratios
60%

50%

40%

30%

20%

10%

2010

2011

0%
2005

2006
Dividend: 0%

2007
Dividend: 20%

2008

2009

Dividend: 40%

2010
Max Debt-Ratio Policy

DO NOT LOOK DOWN HERE

2009
40%

2010
40%

wth v.0%, 20%, 40% Payout Ratios

wth v.0%, 20%, 40% Payout Ratios

wth v.0%, 20%, 40% Payout Ratios

wth v.0%, 20%, 40% Payout Ratios

2011
40%

2010
Max Debt-Ratio Policy

2011

2010
Max Debt-Ratio Policy

2011