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Firm Characteristic BSET ETH FBN HVT LZB RH STLY TPX WSM Teuer

Manufactures Yes Yes Yes No Yes No Yes Yes No No


International No No Yes Yes Yes Yes No Yes Yes No
Online No Yes No No No Yes Yes Yes Yes No
Furniture only Yes No Yes Yes Yes No Yes No No Yes
Owns retail outlets Yes Yes Yes Yes Yes Yes No Yes Yes No
Annual sales growth (2009-2012) 5.0% 2.7% -4.3% 4.5% 0.1% 24.0% -15.0% 19.1% 9.2% 17.8%
Sales growth rate (last year) 6.5% 7.4% -3.2% 7.9% 3.8% 24.5% -5.8% -1.1% 8.7% 10.5%
Net income margin 9.9% 6.8% -4.4% 2.2% 7.2% -1.1% 30.8% 7.6% 6.4% 14.6%
Adjusted net income margin 9.7% 8.2% -3.9% 2.3% 7.4% -1.0% 33.1% 8.2% 6.3% 14.6%
Profits negative No No Yes No No Yes No No No No
Reinvestment rate 108% 54% NMF -6% 20% NMF 31% 23% 51% 42%
Sales 270 729 1,072 670 1,232 1,193 99 1,403 4,043 148
Cash flow from assets -2 28 -6 16 73 -174 23 89 126 13
Debt/Enterprise value 3% 24% 69% 6% 1% 3% 0% 44% 0% 0%
Net debt/Enterprise value -38% 10% 61% -10% -22% 3% -121% 20% -11% 0%
Exhibit TN4: Multiples of Comparable Firms and Implied Valuation of Teuer Furniture

Multiples BSET ETH FBN HVT LZB RH STLY TPX WSM Teuer
Enterprise Value/Sales 0.4x 0.9x 0.1x 0.5x 0.5x 2.4x 0.3x 1.7x 1.0x
Enterprise Value/Adjusted net income 4.3x 10.7x NMF 21.5x 7.3x NMF 0.9x 20.3x 15.1x
Enterprise Value/Cash flow assets NMF 23.0x NMF 20.3x 9.1x NMF 1.3x 26.6x 30.6x
Equity/Net income 5.8x 11.5x NMF 24.3x 9.0x NMF 2.2x 17.6x 16.7x

Implied Teuer valuation based on:


Sales 6.20 13.05 2.12 7.31 7.97 35.16 4.48 24.97 14.22 148,218
Net income 9.35 23.23 46.75 15.81 1.98 44.29 32.78 21,651
Cash flow from assets 28.96 25.48 11.42 1.64 33.40 38.52 12,508

Parameters
Number of shares 9,945
317,799
Exhibit 1-A: Bassett Furniture Industries Inc (BSET)

Income Statement 12/31/2012 12/31/2011 12/31/2010


Revenue 269.7 253.2 235.3
Cost of goods sold 128.4 125.6 122.6
Selling, general, and administrative 134.8 122.0 110.8
Depreciation 0.0 0.0 0.0
R&D 0.0 0.0 0.0
Other expenses (income) -5.2 -54.8 4.9
Interest expenses (net) -0.2 0.6 -0.8
Income before taxes 12.0 59.7 -2.2
Taxes -14.7 4.4 -0.2
Net Income 26.7 55.3 -2.0
Adjusted income (all equity firm)
Earnings before interest and taxes 11.7 60.3 -3.0
Adjusted taxes (all equity firm) -14.4 4.4 -0.3
Net income (all equity firm) 26.1 55.9 -2.7

Balance Sheet 12/31/2012 12/31/2011 12/31/2010


Assets
Cash and equivalents 45.6 69.6 11.1
Accounts receivable 15.8 14.8 31.6
Inventory 57.9 45.1 41.8
Other current assets 13.3 10.7 7.0
Total current assets 132.5 140.2 91.5
Property, plant, and equipment 56.6 49.9 46.3
Goodwill and other Intangibles 0.0 0.0 15.1
Other long-term assets 38.0 33.0 44.5
Total long-term assets 94.7 83.0 105.8
Total assets 227.2 223.2 197.3
Liabilities
Accounts payable 22.4 18.8 24.9
Accrued expenses 17.4 17.7 17.4
Notes payable 0.0 0.0 0.0
Current maturities of long-term debt 0.0 0.0 9.5
Other current liabilities 12.8 15.3 10.1
Total current liabilities 52.6 51.8 61.8
Long-term debt and capital leases 3.1 3.7 4.3
Other liabilities 14.3 15.3 24.9
Common equity 157.3 152.4 106.3
Total liabilities and shareholder's equity 227.2 223.2 197.3

Financial Data
Cash flow to assets -2.2
Stock price 14.2
Common shares outstanding 10.9
Market value of equity 154.7
Enterprise value 112.2

Ratios and Summary Data


Sales growth 6.5% 7.6% 1.1%
Gross profit margin 52.4% 50.4% 47.9%
Net profit margin 9.9% 21.9% -0.8%
AR/sales 5.8% 5.8% 13.4%
Inventory/CGS 45.1% 35.9% 34.1%
AP/CGS 17.5% 15.0% 20.3%
Net investment 28.3

Multiples
Asset price/Cash flow assets NMF
Asset price/Adjusted net income 4.3x
Asset price/Sales 0.4x

Equity price/Net income 5.8x


12/31/2009 12/31/2008
232.7 288.3
129.9
103.8
0.0
0.0
21.6
2.0
-24.5
-1.8
-22.7

-22.5
-1.7
-20.9

12/31/2009

23.2
34.6
33.4
13.3
104.5
50.6
14.9
46.1
111.7
216.2

14.7
17.2
0.0
4.4
7.0
43.3
32.0
30.7
110.3
216.2
-19.3%
44.2%
-9.8%
14.9%
25.7%
11.3%
Exhibit 1-B: Ethan Allen Interiors Inc (ETH)

Income Statement 6/30/2012 6/30/2011 6/30/2010 6/30/2009 6/30/2008


Revenue 729.4 679.0 590.1 674.3 980.0
Cost of goods sold 339.1 329.5 309.8 326.9
Selling, general, and administrative 322.0 296.7 262.6 394.5
Depreciation 18.6 20.8 29.4 25.6
R&D 0.0 0.0 0.0 0.0
Other expenses (income) 0.0 0.0 0.0 0.0
Interest expenses (net) 8.5 5.6 7.1 8.4
Income before taxes 41.2 26.4 -18.8 -81.2
Taxes -8.5 -2.9 25.5 -28.5
Net Income 49.7 29.3 -44.3 -52.7
Adjusted income (all equity firm)
Earnings before interest and taxes 49.7 31.9 -11.7 -72.8
Adjusted taxes (all equity firm) -10.2 -3.5 15.9 -25.5
Net income (all equity firm) 59.9 35.4 -27.7 -47.2

Balance Sheet 6/30/2012 6/30/2011 6/30/2010 6/30/2009


Assets
Cash and equivalents 88.7 91.4 84.9 53.0
Accounts receivable 14.9 15.0 17.1 13.1
Inventory 155.7 141.7 134.0 156.5
Other current assets 23.4 20.4 23.6 29.2
Total current assets 282.8 268.5 259.7 251.7
Property, plant, and equipment 295.7 294.9 305.7 333.6
Goodwill and other Intangibles 45.1 45.1 45.1 45.1
Other long-term assets 21.2 19.8 21.2 16.1
Total long-term assets 362.0 359.8 372.1 394.8
Total assets 644.8 628.3 631.8 646.5
Liabilities
Accounts payable 27.3 27.0 24.0 22.2
Accrued expenses 58.0 65.0 65.3 58.5
Notes payable 0.0 0.0 0.0 0.0
Current maturities of long-term debt 0.3 0.0 3.9 0.0
Other current liabilities 65.5 62.6 52.6 31.7
Total current liabilities 151.1 154.6 145.7 112.5
Long-term debt and capital leases 154.3 165.0 199.4 203.1
Other liabilities 17.8 27.0 28.2 25.0
Common equity 321.7 281.7 258.5 305.9
Total liabilities and shareholder's equity 644.8 628.3 631.7 646.5

Financial Data
Cash flow to assets 27.7
Stock price 19.9
Common shares outstanding 28.8
Market value of equity 573.1
Enterprise value 638.9

Ratios and Summary Data


Sales growth 7.4% 15.1% -12.5% -31.2%
Gross profit margin 53.5% 51.5% 47.5% 51.5%
Net profit margin 6.8% 4.3% -7.5% -7.8%
AR/sales 2.0% 2.2% 2.9% 1.9%
Inventory/CGS 45.9% 43.0% 43.3% 47.9%
AP/CGS 8.1% 8.2% 7.7% 6.8%
Net investment 32.1

Multiples
Asset price/Cash flow assets 23.0x
Asset price/Adjusted net income 10.7x
Asset price/Sales 0.9x
Equity price/Net income 11.5x
Exhibit 1-C: Furniture Brands International Inc (FBN)

Income Statement 12/29/2012 12/31/2011 12/31/2010


Revenue 1072.3 1107.7 1159.9
Cost of goods sold 827.3 837.1 879.2
Selling, general, and administrative 252.8 270.9 285.2
Depreciation 18.9 21.9 23.9
R&D 0.0 0.0 0.0
Other expenses (income) 16.6 20.8 16.5
Interest expenses (net) 5.7 3.6 3.2
Income before taxes -49.0 -46.6 -47.9
Taxes -1.8 -2.8 -8.9
Net Income -47.3 -43.8 -39.0
Adjusted income (all equity firm)
Earnings before interest and taxes -43.4 -43.0 -44.7
Adjusted taxes (all equity firm) -1.6 -2.6 -8.3
Net income (all equity firm) -41.8 -40.4 -36.4

Balance Sheet 12/29/2012 12/31/2011 12/31/2010


Assets
Cash and equivalents 11.9 25.4 52.0
Accounts receivable 125.7 108.0 114.5
Inventory 244.3 228.2 249.7
Other current assets 11.3 9.5 11.2
Total current assets 393.2 371.0 427.4
Property, plant, and equipment 103.4 115.8 124.9
Goodwill and other Intangibles 76.1 77.5 86.5
Other long-term assets 45.7 50.2 37.6
Total long-term assets 225.2 243.5 249.0
Total assets 618.4 614.5 676.4
Liabilities
Accounts payable 113.6 85.6 79.9
Accrued expenses 58.7 53.6 61.2
Notes payable 0.0 0.0 0.0
Current maturities of long-term debt 0.0 0.0 0.0
Other current liabilities 0.0 0.0 0.0
Total current liabilities 172.3 139.2 141.1
Long-term debt and capital leases 105.0 77.0 77.0
Other liabilities 286.3 266.1 198.8
Common equity 54.8 132.3 259.6
Total liabilities and shareholder's equity 618.4 614.5 676.4

Financial Data
Cash flow to assets -5.8
Stock price 7.4
Common shares outstanding 8.0
Market value of equity 59.7
Enterprise value 152.8

Ratios and Summary Data


Sales growth -3.2% -4.5% -5.3%
Gross profit margin 22.8% 24.4% 24.2%
Net profit margin -4.4% -3.9% -3.4%
AR/sales 11.7% 9.7% 9.9%
Inventory/CGS 29.5% 27.3% 28.4%
AP/CGS 13.7% 10.2% 9.1%
Net investment (36.0)

Multiples
Asset Price/Cash flow assets NMF
Asset price/Adjusted net income NMF
Asset Price/Sales 0.1x
Equity Price/Net income NMF
12/31/2009 12/31/2008
1224.4 1744.5
986.2
322.8
20.7
0.0
65.8
5.3
-176.5
-67.8
-108.7

-171.1
-65.7
-105.4

12/31/2009

83.9
184.5
226.1
9.3
503.7
134.4
87.6
32.4
254.4
758.1

83.8
75.9
0.0
17.0
0.0
176.8
78.0
240.6
262.8
758.1
-29.8%
19.5%
-8.9%
15.1%
22.9%
8.5%
Exhibit 1-D: Haverty Furniture Companies Inc (HVT)

Income Statement 12/31/2012 12/31/2011 12/31/2010


Revenue 670.4 621.4 620.3
Cost of goods sold 318.0 300.2 301.6
Selling, general, and administrative 309.6 297.8 295.4
Depreciation 19.4 18.2 16.9
R&D 0.0 0.0 0.0
Other expenses (income) -0.8 -0.2 -3.0
Interest expenses (net) 0.6 0.7 0.8
Income before taxes 23.5 4.6 8.7
Taxes 8.6 -10.9 0.2
Net Income 14.9 15.5 8.4
Adjusted income (all equity firm)
Earnings before interest and taxes 24.1 5.3 9.5
Adjusted taxes (all equity firm) 8.8 -12.6 0.3
Net income (all equity firm) 15.3 17.9 9.2

Balance Sheet 12/31/2012 12/31/2011 12/31/2010


Assets
Cash and equivalents 53.6 49.6 58.1
Accounts receivable 9.7 11.5 13.8
Inventory 96.9 93.7 91.9
Other current assets 19.7 22.9 13.2
Total current assets 179.9 177.7 176.9
Property, plant, and equipment 193.1 179.3 175.5
Goodwill and other Intangibles 0.0 0.0 0.0
Other long-term assets 29.1 28.1 17.7
Total long-term assets 222.2 207.4 193.2
Total assets 402.1 385.1 370.2
Liabilities
Accounts payable 28.2 21.2 18.1
Accrued expenses 11.8 11.0 31.4
Notes payable 0.0 0.0 0.0
Current maturities of long-term debt 0.9 0.8 0.5
Other current liabilities 49.0 39.4 20.6
Total current liabilities 89.9 72.4 70.6
Long-term debt and capital leases 18.5 12.3 8.6
Other liabilities 34.3 37.8 37.9
Common equity 259.4 262.7 253.2
Total liabilities and shareholder's equity 402.1 385.1 370.2

Financial Data
Cash flow to assets 16.2
Stock price 16.3
Common shares outstanding 22.3
Market value of equity 362.9
Enterprise value 328.7

Ratios and Summary Data


Sales growth 7.9% 0.2% 5.5%
Gross profit margin 52.6% 51.7% 51.4%
Net profit margin 2.2% 2.5% 1.4%
AR/sales 1.4% 1.8% 2.2%
Inventory/CGS 30.5% 31.2% 30.5%
AP/CGS 8.9% 7.1% 6.0%
Net investment (0.9)

Multiples
Asset Price/Cash flow assets 20.3x
Asset price/Adjusted net income 21.5x
Asset Price/Sales 0.5x
Equity Price/Net income 24.3x
12/31/2009 12/31/2008
588.3 691.1
282.8
292.2
19.3
0.0
-1.4
0.8
-5.4
-1.2
-4.2

-4.6
-1.0
-3.6

12/31/2009

44.5
15.3
93.3
15.2
168.3
176.4
0.0
16.2
192.6
360.9

19.1
30.2
0.0
0.4
21.8
71.4
6.8
38.1
244.6
360.9
-14.9%
51.9%
-0.7%
2.6%
33.0%
6.8%
Exhibit 1-E: La-Z-Boy Incorporated (LZB)

Income Statement 4/28/2012 4/30/2011 4/24/2010


Revenue 1231.7 1187.1 1179.2
Cost of goods sold 851.8 832.8 804.5
Selling, general, and administrative 306.7 299.7 307.5
Depreciation 23.5 24.3 25.2
R&D 0.0 0.0 0.0
Other expenses (income) -18.6 2.1 -5.8
Interest expenses (net) 1.4 2.3 3.0
Income before taxes 66.9 26.0 44.7
Taxes -22.0 8.6 12.7
Net Income 88.9 17.4 32.1
Adjusted income (all equity firm)
Earnings before interest and taxes 68.2 28.3 47.7
Adjusted taxes (all equity firm) -22.5 9.4 13.5
Net income (all equity firm) 90.7 18.9 34.2

Balance Sheet 4/28/2012 4/30/2011 4/24/2010


Assets
Cash and equivalents 152.4 115.3 108.4
Accounts receivable 167.2 161.3 165.0
Inventory 143.8 138.4 132.5
Other current assets 36.6 17.2 21.2
Total current assets 500.0 432.2 427.1
Property, plant, and equipment 114.4 120.6 138.9
Goodwill and other Intangibles 3.0 3.1 3.1
Other long-term assets 68.3 37.5 38.8
Total long-term assets 185.7 161.2 180.7
Total assets 685.7 593.5 607.8
Liabilities
Accounts payable 56.6 49.5 54.7
Accrued expenses 44.9 37.4 51.7
Notes payable 0.0 0.0 0.0
Current maturities of long-term debt 1.8 5.1 1.1
Other current liabilities 46.4 40.0 39.8
Total current liabilities 149.8 132.1 147.3
Long-term debt and capital leases 7.9 29.9 46.9
Other liabilities 86.1 70.1 73.7
Common equity 441.9 361.3 339.8
Total liabilities and shareholder's equity 685.7 593.4 607.8

Financial Data
Cash flow to assets 72.5
Stock price 15.3
Common shares outstanding 52.2
Market value of equity 801.4
Enterprise value 658.8

Ratios and Summary Data


Sales growth 3.8% 0.7% -3.9%
Gross profit margin 30.8% 29.8% 31.8%
Net profit margin 7.2% 1.5% 2.7%
AR/sales 13.6% 13.6% 14.0%
Inventory/CGS 16.9% 16.6% 16.5%
AP/CGS 6.6% 5.9% 6.8%
Net investment 18.2

Multiples
Asset Price/Cash flow assets 9.1x
Asset price/Adjusted net income 7.3x
Asset Price/Sales 0.5x
Equity Price/Net income 9.0x
4/25/2009 4/25/2008
1226.7 1450.9
887.9
408.7
24.1
0.0
-2.6
5.6
-97.0
24.3
-121.3

-91.4
22.9
-114.4

4/25/2009

36.1
147.9
140.2
23.7
347.8
150.2
3.1
51.4
204.8
552.5

41.6
75.7
0.0
8.7
0.0
126.0
52.1
68.6
305.7
552.5
-15.5%
27.6%
-9.9%
12.1%
15.8%
4.7%
Exhibit 1-F: Restoration Hardware Holdings Inc (RH)

Income Statement 2/2/2013 1/28/2012 1/29/2011


Revenue 1193.0 958.1 772.8
Cost of goods sold 756.6 601.7 499.0
Selling, general, and administrative 390.4 327.9 274.8
Depreciation 0.0 0.0 0.0
R&D 0.0 0.0 0.0
Other expenses (income) 115.1 1.6 2.1
Interest expenses (net) 5.8 5.1 3.2
Income before taxes -74.8 21.7 -6.4
Taxes -62.0 1.1 0.7
Net Income -12.8 20.6 -7.1
Adjusted income (all equity firm)
Earnings before interest and taxes -69.0 26.8 -3.2
Adjusted taxes (all equity firm) -57.2 1.4 0.4
Net income (all equity firm) -11.8 25.5 -3.6

Balance Sheet 2/2/2013 1/28/2012 1/29/2011


Assets
Cash and equivalents 8.4 8.5 13.4
Accounts receivable 17.0 11.8 4.5
Inventory 353.3 245.9 206.4
Other current assets 114.0 56.7 20.4
Total current assets 492.8 322.9 244.6
Property, plant, and equipment 111.4 83.6 76.5
Goodwill and other intangibles 172.7 175.1 178.5
Other long-term assets 12.7 5.3 2.5
Total long-term assets 296.9 263.9 257.4
Total assets 789.6 586.8 502.0
Liabilities
Accounts payable 81.6 47.4 51.4
Accrued expenses 63.7 58.3 39.3
Notes payable 0.0 0.0 0.0
Current maturities of long-term debt 2.9 4.1 2.4
Other current liabilities 71.1 52.2 36.6
Total current liabilities 219.4 162.0 129.7
Long-term debt and capital leases 84.1 122.3 111.8
Other liabilities 34.5 52.1 44.6
Common equity 451.6 250.5 215.8
Total liabilities and shareholder's equity 789.6 586.8 502.0

Financial Data
Cash flow to assets -173.8
Stock price 70.3
Common shares outstanding 38.9
Market value of equity 2735.5
Enterprise value 2814.2

Ratios and Summary Data


Sales growth 24.5% 24.0% 23.5%
Gross profit margin (revenue-CGS)/Revenue 36.6% 37.2% 35.4%
net profit margin (net profit/revenue) -1.1% 2.2% -0.9%
AR/sales 1.4% 1.2% 0.6%
Inventory/CGS 46.7% 40.9% 41.4%
AP/CGS 10.8% 7.9% 10.3%
Net investment 161.9

Multiples
Asset Price/Cash flow assets NMF
Asset price/Adjusted net income NMF
Asset Price/Sales 2.4x
Equity Price/Net income NMF
1/30/2010 1/30/2010
625.7 288.3
423.1
238.9
0.0
0.0
-10.5
3.2
-29.0
-0.4
-28.6

-25.8
-0.4
-25.5

1/30/2010

13.2
4.5
149.0
18.8
185.5
62.2
182.3
1.5
246.0
431.5

47.0
37.8
0.0
1.9
30.5
117.2
57.4
35.8
221.1
431.5
117.0%
32.4%
-4.6%
0.7%
35.2%
11.1%
Exhibit 1-G: Stanley Furniture Company (STLY)

Income Statement 12/31/2012 12/31/2011 12/31/2010


Revenue 98.6 104.6 137.0
Cost of goods sold 85.9 92.2 153.1
Selling, general, and administrative 16.5 17.6 11.2
Depreciation 1.8 1.6 9.4
R&D 0.0 0.0 0.0
Other expenses (income) -39.0 -4.1 7.5
Interest expenses (net) 2.3 2.3 3.5
Income before taxes 31.0 -5.0 -47.8
Taxes 0.7 0.0 -4.0
Net Income 30.4 -5.0 -43.8
Adjusted income (all equity firm)
Earnings before interest and taxes 33.4 -2.7 -44.2
Adjusted taxes (all equity firm) 0.7 0.0 -3.7
Net income (all equity firm) 32.7 -2.7 -40.5

Balance Sheet 12/31/2012 12/31/2011 12/31/2010


Assets
Cash and equivalents 35.9 15.7 25.5
Accounts receivable 10.0 10.3 13.8
Inventory 35.1 31.1 25.7
Other current assets 6.1 5.5 6.9
Total current assets 87.2 62.5 72.0
Property, plant, and equipment 19.9 17.6 16.0
Goodwill and other Intangibles 0.0 0.0 0.0
Other long-term assets 3.7 0.5 0.4
Total long-term assets 23.6 18.1 16.4
Total assets 110.7 80.6 88.4
Liabilities
Accounts payable 8.7 10.0 9.1
Accrued expenses 6.2 6.5 7.7
Notes payable 0.0 0.0 0.0
Current maturities of long-term debt 0.0 0.0 2.4
Other current liabilities 0.0 0.0 0.0
Total current liabilities 14.9 16.5 19.2
Long-term debt and capital leases 0.0 0.0 0.0
Other liabilities 8.6 7.1 7.4
Common equity 87.2 57.0 61.8
Total liabilities and shareholder's equity 110.7 80.6 88.4

Financial Data
Cash flow to assets 22.7
Stock price 4.5
Common shares outstanding 14.6
Market value of equity 65.6
Enterprise value 29.6

Ratios and Summary Data


Sales growth -5.8% -23.6% -14.6%
Gross profit margin 12.9% 11.9% -11.8%
Net profit margin 30.8% -4.8% -32.0%
AR/sales 10.2% 9.8% 10.1%
Inventory/CGS 40.8% 33.7% 16.8%
AP/CGS 10.1% 10.8% 6.0%
Net investment 10.0

Multiples
Asset Price/Cash flow assets 1.3x
Asset price/Adjusted net income 0.9x
Asset Price/Sales 0.3x
Equity Price/Net income 2.2x
12/31/2009 12/31/2008
160.5 226.5
158.7
20.7
6.0
0.0
-9.5
3.7
-19.1
-7.4
-11.7

-15.4
-5.9
-9.5

12/31/2009

41.8
22.2
37.2
8.3
109.6
31.4
9.1
0.5
40.9
150.5

11.6
9.2
0.0
1.4
0.0
22.3
26.4
8.9
92.9
150.4
-29.2%
1.1%
-7.3%
13.8%
23.5%
7.3%
Exhibit 1-H: Tempur Sealy International Inc (TPX)

Income Statement 12/31/2012 12/31/2011 12/31/2010


Revenue 1402.9 1417.9 1105.4
Cost of goods sold 688.3 674.8 550.0
Selling, general, and administrative 408.7 341.7 258.1
Depreciation 42.0 51.0 44.0
R&D 15.6 9.9 7.4
Other expenses (income) 0.3 0.2 0.5
Interest expenses (net) 18.8 11.9 14.5
Income before taxes 229.2 328.4 230.9
Taxes 122.4 108.8 73.7
Net Income 106.8 219.6 157.2
Adjusted income (all equity firm)
Earnings before interest and taxes 248.0 340.3 245.4
Adjusted taxes (all equity firm) 132.4 112.7 78.4
Net income (all equity firm) 115.6 227.6 167.0

Balance Sheet 12/31/2012 12/31/2011 12/31/2010


Assets
Cash and equivalents 554.3 111.4 53.6
Accounts receivable 129.8 142.4 115.6
Inventory 93.0 91.2 69.9
Other current assets 56.5 34.8 32.4
Total current assets 833.6 379.8 271.5
Property, plant, and equipment 186.0 160.5 159.8
Goodwill and other Intangibles 279.2 279.8 281.2
Other long-term assets 26.7 18.1 3.5
Total long-term assets 491.9 458.4 444.5
Total assets 1325.5 838.1 716.0
Liabilities
Accounts payable 85.8 69.9 48.3
Accrued expenses 84.3 52.6 60.3
Notes payable 0.0 0.0 0.0
Current maturities of long-term debt 0.0 0.0 0.0
Other current liabilities 16.1 45.1 37.7
Total current liabilities 186.2 167.6 146.2
Long-term debt and capital leases 1025.0 585.0 407.0
Other liabilities 53.6 54.8 36.7
Common equity 60.7 30.8 126.0
Total liabilities and shareholder's equity 1325.5 838.2 716.0

Financial Data
Cash flow to assets 88.5
Stock price 31.5
Common shares outstanding 59.7
Market value of equity 1880.0
Enterprise value 2350.7

Ratios and Summary Data


Sales growth -1.1% 28.3% 33.0%
Gross profit margin 50.9% 52.4% 50.2%
Net profit margin 7.6% 15.5% 14.2%
AR/sales 9.3% 10.0% 10.5%
Inventory/CGS 13.5% 13.5% 12.7%
AP/CGS 12.5% 10.4% 8.8%
Net investment 27.1

Multiples
Asset Price/Cash flow assets 26.6x
Asset price/Adjusted net income 20.3x
Asset Price/Sales 1.7x
Equity Price/Net income 17.6x
12/31/2009 12/31/2008
831.2 927.8
437.5
208.6
40.2
0.0
-0.4
17.3
128.0
43.0
85.0

145.4
48.9
96.5

12/31/2009

14.0
105.6
57.7
31.7
209.0
172.5
258.1
3.8
434.4
643.4

47.8
81.5
0.0
0.0
7.3
136.5
297.5
37.1
172.3
643.4
-10.4%
47.4%
10.2%
12.7%
13.2%
10.9%
Exhibit 1-I: Williams-Sonoma Inc (WSM)

Income Statement 2/3/2013 1/29/2012 1/30/2011


Revenue 4042.9 3720.9 3504.2
Cost of goods sold 2450.4 2261.0 2130.3
Selling, general, and administrative 1035.9 940.1 888.3
Depreciation 134.5 130.6 144.6
R&D 0.0 0.0 0.0
Other expenses (income) 13.0 7.5 17.5
Interest expenses (net) -0.8 -0.1 0.4
Income before taxes 410.0 381.8 323.1
Taxes 153.2 144.9 122.8
Net Income 256.7 236.9 200.2
Adjusted income (all equity firm)
Earnings before interest and taxes 409.2 381.7 323.4
Adjusted taxes (all equity firm) 152.9 144.9 123.0
Net income (all equity firm) 256.2 236.9 200.4

Balance Sheet 2/3/2013 1/29/2012 1/30/2011


Assets
Cash and equivalents 424.6 502.8 628.4
Accounts receivable 63.0 46.0 41.6
Inventory 640.0 553.5 513.4
Other current assets 189.2 174.2 164.3
Total current assets 1316.8 1276.4 1347.6
Property, plant, and equipment 812.0 734.7 730.6
Goodwill and other Intangibles 0.0 0.0 0.0
Other long-term assets 58.9 49.8 53.6
Total long-term assets 870.9 784.5 784.2
Total assets 2187.7 2060.8 2131.7
Liabilities
Accounts payable 259.2 218.3 228.0
Accrued expenses 120.6 111.8 122.4
Notes payable 0.0 0.0 0.0
Current maturities of long-term debt 1.7 1.8 1.5
Other current liabilities 275.6 239.9 259.8
Total current liabilities 657.1 571.8 611.7
Long-term debt and capital leases 3.8 5.5 7.1
Other liabilities 217.7 228.3 254.1
Common equity 1309.1 1255.3 1258.9
Total liabilities and shareholder's equity 2187.7 2060.8 2131.7

Financial Data
Cash flow to assets 126.0
Stock price 43.8
Common shares outstanding 97.7
Market value of equity 4277.6
Enterprise value 3858.6

Ratios and Summary Data


Sales growth 8.7% 6.2% 12.9%
Gross profit margin 39.4% 39.2% 39.2%
Net profit margin 6.4% 6.4% 5.7%
AR/sales 1.6% 1.2% 1.2%
Inventory/CGS 26.1% 24.5% 24.1%
AP/CGS 10.6% 9.7% 10.7%
Net investment 130.3

Multiples
Asset Price/Cash flow assets 30.6x
Asset price/Adjusted net income 15.1x
Asset Price/Sales 1.0x
Equity Price/Net income 16.7x
1/31/2010 1/31/2009
3102.7 3364.7
1999.5
797.1
151.8
0.0
32.7
1.4
120.3
42.8
77.5

121.7
43.3
78.3

1/31/2010

513.9
44.2
466.1
155.9
1180.2
829.0
0.0
69.9
899.0
2079.2

188.2
107.7
0.0
1.6
265.9
563.5
8.7
295.4
1211.6
2079.2
-7.8%
35.6%
2.5%
1.4%
23.3%
9.4%
Exhibit 2: Teuer Furniture

Income Statement 12/31/2012 12/31/2011 12/31/2010


Revenue 148.2 134.1 111.5
Cost of goods sold 62.0 55.5 49.1
Selling, general, and administrative 41.3 36.7 32.5
Depreciation 1.5 1.8 2.0
R&D 0.0 0.0 0.0
Other expenses (income) 7.4 6.7 5.6
Interest expenses (net) 0.0 0.0 0.0
Income before taxes 36.1 33.4 22.2
Taxes 14.4 13.4 8.9
Net Income 21.7 20.0 13.3
Adjusted income (all equity firm)
Earnings before interest and taxes 36.1 33.4 22.2
Adjusted taxes (all equity firm) 14.4 13.4 8.9
Net income (all equity firm) 21.7 20.0 13.3

Balance Sheet 12/31/2012 12/31/2011 12/31/2010


Assets
Cash and equivalents 0.0 0.0 0.0
Accounts receivable 48.2 42.4 36.6
Inventory 33.3 29.2 26.8
Other current assets 0.0 0.0 0.0
Total current assets 81.5 71.6 63.4
Property, plant, and equipment 3.9 3.1 3.8
Goodwill and other intangibles 0.0 0.0 0.0
Other long-term assets 0.0 0.0 0.0
Total long-term assets 3.9 3.1 3.8
Total assets 85.5 74.8 67.3
Liabilities
Accounts payable 11.4 10.0 9.1
Accrued expenses 1.7 1.5 1.4
Notes payable 0.0 0.0 0.0
Current maturities of long-term debt 0.0 0.0 0.0
Other current liabilities 0.0 0.0 0.0
Total current liabilities 13.0 11.5 10.5
Long-term debt and capital leases 0.0 0.0 0.0
Other liabilities 0.0 0.0 0.0
Common equity 72.4 63.3 56.8
Total liabilities and shareholder's equity 85.5 74.8 67.3

Financial Data
Cash flow to assets 12.5
Stock price
Common shares outstanding 9.9
Market value of equity 0.0
Enterprise value 0.0

Ratios and Summary Data


Sales growth 10.5% 20.3% 22.9%
Gross profit margin 58.2% 58.6% 56.0%
Net profit margin 14.6% 14.9% 12.0%
AR/sales 32.5% 31.6% 32.9%
Inventory/CGS 53.8% 52.7% 54.6%
AP/CGS 18.3% 18.0% 18.6%
Net investment 9.1

Multiples
Asset Price/Cash flow assets 0.0x
Asset price/Adjusted net income 0.0x
Asset Price/Sales 0.0x

Equity Price/Net income 0.0x


12/31/2009 12/31/2008
90.7 79.2
47.3
29.6
2.2
0.0
5.4
0.0
6.2
0.5
5.6

6.2
0.5
5.6

12/31/2009

0.0
29.1
24.9
0.0
53.9
5.1
0.0
0.0
5.1
59.0

8.3
1.2
0.0
0.0
0.0
9.5
0.0
0.0
49.6
59.0
14.5%
47.8%
6.2%
32.0%
52.6%
17.5%
Teuer Furniture Pro Forma Cash Flow from Assets
2012 2013 2014 2015 2016 2017 2018
Sales 148,218 164,987 181,865 199,509 217,418 231,340 242,103
- Costs -112,132 -125,505 -138,395 -151,457 -163,729 -171,532 -176,526
- Taxes -14,434 -15,793 -17,388 -19,221 -21,476 -23,923 -26,231
Net incom 21,651 23,689 26,082 28,831 32,214 35,885 39,346
- Capital -2,229 -2,367 -3,325 -4,114 -761 -322 -616
+ Depreci 1,450 1,084 1,373 1,959 2,631 2,559 2,178
- Increas -8,365 -7,257 -7,521 -7,568 -7,062 -5,283 -4,078
Cash Flow 12,508 15,150 16,608 19,109 27,022 32,839 36,829
Terminal Value 443,234

Asset Valu 317,874 317,799 480,063


Share valu 31.96 48.27

Parameters:
Asset disco 12.1%
Long term 3.5%
Shareholde 187 ownership n finan section in case
Shares out 9,945 footnote 11 or exh 10

Growth Rates:
Sales 11.3% 10.2% 9.7% 9.0% 6.4% 4.7%
Net income 9.4% 10.1% 10.5% 11.7% 11.4% 9.6%
Cash flow from assets 21.1% 9.6% 15.1% 41.4% 21.5% 12.2%
Implied g
Implied Implied Implied
2013 multiple growth Price 2018
P/s 1.926665 1.105124 7% 31.96325 1.98289
P/E 14.68149 10.83255 5.50% 34.97195 12.20103
P/FCFE 25.41352 12.03488 7.80% 38.71 13.03488
3.5% 17.8%
7.80% average of six years and 3.5 to perpetuity