Transworld Auto Parts (A)

Harvard Business School Case #110-027

Case Software #XLS-460

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Exhibit 1 Transworld Auto Parts Financial Statements

Annual Income Statement (abbreviated) (in $USM except where noted)

Dec 08
Revenue
Costs of Goods Sold
Gross Profit
Gross Profit Margin (%)
SG&A Expense
Operating Income
Interest Expense
Income Tax Expense
Net Income

$6,681
6,360
$321
4.81%
678
$(357)
98
0
$(455)

Dec 07
$7,886
7,485
$401
5.09%
775
$(375)
157
0
$(531)

Dec 06
$7,993
7,479
$514
6.43%
802
$(288)
123
0
$(411)

Dec 05

Dec 04

$11,883
11,495
$388
3.26%
1,720
$(1,332)
101
0
$(1,433)

$13,060
12,678
$382
2.93%
1,176
$(793)
103
0
$(897)

Annual Balance Sheet (in $USM)

Cash
Net Receivables
Inventories
Other Current Assets
Total Current Assets
Net Fixed Assets
Other Noncurrent Assets
Total Assets
Accounts Payable
Short-Term Debt
Other Current Liabilities
Total Current Liabilities
Long-Term Debt
Other Noncurrent Liabilities
Total Liabilities
Total Equity
Total Liabilities and Equity

Source: Casewriters.

Dec 08

Dec 07

Dec 06

Dec 05

Dec 04

$1,626.0
692.3
247.8
174.3
$2,740.4
1,513.4
219.8
$4,473.6
$740.6
1,887.9
361.2
$2,989.7
45.5
1,259.3
$4,294.5
179.1
$4,473.6

$2,030.6
805.0
346.5
468.3
$3,650.4
1,955.1
238.0
$5,843.5
$1,236.2
66.5
466.9
$1,769.6
1,921.5
1,415.4
$5,106.5
737.0
$5,843.5

$1,539.9
871.5
364.0
520.1
$3,295.5
$2,123.8
237.3
$5,656.6
$1,277.5
70.0
450.1
$1,797.6
1,489.6
1,701.0
$4,988.2
668.4
$5,656.6

$1,405.5
1,216.6
375.9
143.5
$3,141.5
$2,081.1
292.6
$5,515.2
$1,262.1
339.5
469.7
$2,071.3
1,056.3
1,621.2
$4,748.8
766.4
$5,515.2

$1,326.4
1,778.0
622.3
184.1
$3,910.8
$3,712.1
393.4
$8,016.3
$1,682.1
355.6
652.4
$2,690.1
1,059.1
3,182.2
$6,931.4
1,084.9
$8,016.3

Exhibit 1 (continued) Transworld Auto Parts Financial Statements

Annual Cash Flow Statement ($USM)
Dec 08
Net Operating Cash Flow
Net Investing Cash Flow
Net Financing Cash Flow
Net Change in Cash
Depreciation & Amortization
Capital Expenditures
Cash Dividends Paid

Source: Casewriters.

$(81)
(146)
(178)
$(405)
291
(206)
0

Dec 07
$205
(124)
410
$491
330
(263)
0

Dec 06
$197
(236)
173
$134
301
(261)
0

Dec 05
$292
(162)
(51)
$79
1,058
(410)
0

Dec 04
$293
(547)
113
$(141)
480
(579)
0

Exhibit 3 TAP Key Customer Segments by Percentage of Sales in Each Geographic

Division, December 2008

Low-priced small cars

Low-priced midsized cars
Low-priced CUV/SUVsa
Luxury cars
Luxury SUVs
Luxury CUVs
Luxury sport
Moderately priced cars, SUVs, and CUVs
Trucks (noncommercial)
Total
Total Sales (%)

North America

Europe

Asia

10%
16%
4%
5%
12%
8%
5%
20%
20%
100%
45%

5%
5%
5%
35%
5%
5%
30%
3%
7%
100%
30%

35%
30%
10%
5%
5%
5%
5%
5%
0%
100%
25%

Source: Casewriters.
Crossover utility vehicles (CUVs) are built on car frames and have little or no off-road capability, SUVs
(sports utility vehicles) are built on truck frames and typically have off-road capability.
a

Exhibit 4 TAP Selected Financial Data, by Customer Division (in $USM), FYE 2008
Product
Category

Economy Small to
Midsized
Cars/SUVs/CUVs

Revenue
COGS
SGA
Operating
Income

Source: Casewriters.

Moderately Priced
Cars/SUVs/CUVs

Luxury (all
segments)

Truck (all
segments)

Total

$2,255
2,100
135

$745
899
244

$2,939
2,560
171

$742
801
128

$6,681
6,360
678

$20

$(398)

$208

$(187)

$(357)

Exhibit 5 Global Light Vehicle Production by Region (in thousands of vehicles)

North America
South America
European Union
Other Europe
Asia & Oceania
Africa
Total

2003
15,874
1,922
17,472
1,909
20,363
379
57,918

2004
15,773
2,517
17,765
2,355
22,588
401
61,399

2005
15,753
2,816
17,793
2,259
23,86
491
62,973

2006
15,252
3,034
18,058
2,528
26,178
531
65,58

2007
15,021
3,492
18,992
2,840
28,335
493
69,173

2008
12,607
3,688
17,710
3,107
28,575
548
66,234

Source: Compiled from data provided by the International Organization of Motor Vehicle Manufacturers and
Efraim Levy, "Autos & Auto Parts," Standard & Poor's Industry Surveys, June 25, 2009.