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Wholesale and Distribution Industry

Key Performance Indicators (KPIs)


NAW Billion Dollar Company CFO Roundtable
June 10, 2014

Paul Melville
Partner
T 312-602-8360
E paul.melville@us.gt.com

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Contents
Section Page
1. Introduction 3
2. Industry and sub-industry overview 7
3. Key performance indicators wholesale industry 11
4. Electrical & electronics equipment & components wholesalers 14
5. Food & grocery wholesalers 20
6. Containers, packaging, paper & forest products wholesalers 26
7. Appendix supporting schedules 32

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Section 1 Introduction

01. Introduction

02. Industry and sub-industry overview

03. Key performance indicators wholesale industry

04. Electrical & electronics equipment & components wholesalers

05. Food & grocery wholesalers

06. Containers, packaging, paper & forest products wholesalers

07. Appendix supporting schedules

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Introduction

Overview
Scope of presentation
This presentation will cover the key financial metrics which are important to the operation of a successful wholesale/distribution business. We will discuss the metrics lenders
and investors look at when assessing a wholesaler /distributor as well as identify the best in class for those metrics.

Presenter profile

Paul Melville
Paul Melville is a Principal in Grant Thorntons Corporate Advisory & Restructuring Services (CARS) practice and is based in
Chicago, Illinois.

Paul has over 18 years experience in all areas of corporate advisory and has advised stakeholders including management, Board of
Directors, Bank groups, customers, suppliers and shareholders in a number of different scenarios including company viability,
reconstructions and debt restructuring, strategic options and formal insolvency. He has also worked on a number of cross border
restructurings.

Prior to moving to the US where he spent three years in the firms Detroit office, Paul was a corporate recovery and restructuring
partner in Grant Thornton UK.

While in the UK Paul also worked in the Credit & Risk department of one of the UK's largest banking institutions. As part of his
Principal role, he oversaw a number of credit files involved in both the sanctioning of new loans and monitoring and review of existing credits.
T: 312.602.8360
E: paul.melville@us.gt.com

Licences and Affiliations


Licensed Insolvency Practitioner
Turnaround Management Association
(TMA)
American Bankruptcy Institute (ABI)
INSOL International
Board of Directors, Commercial Financial
Association Educational Foundation
The Board of Governors of Kohl Children's
Museum of Greater Chicago

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Introduction

Presentation outline
Agenda
Industry and sub-industry overview:
set context for US wholesale and distribution market
key metrics associated with sub-industry performance
Stratification and observation of key performance metrics for all publicly traded wholesalers1, identifying:
what lenders and investors look at
trends driving price / earnings ("P/E") multiples
benchmark data for individual industry analysis
Detailed analysis of following sub-industries:
Electrical & electronics equipment & components wholesalers
Food & grocery wholesalers
Containers, packaging, paper and forest products wholesalers

Notes: 1 - Includes Companies under the SIC codes 5000 Durable goods wholesale and 5100 Non-durable goods wholesale; the data set has been scrubbed by GT for outliers, anomalies, companies that have ceased operations and that
do not actively trade
Sources: Capital IQ

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Introduction

Interactive panel presentation


Key performance metrics Key performance metrics
Market value Cash cycle
P/E multiple Days sales outstanding
Market capitalization Days payables outstanding
Profitability Days inventory outstanding
Gross margin % Liquidity
Sales, general & administration % Current ratio
EBIT margin Quick ratio
EBITDA margin Leverage
Return on total assets Debt / EBITDA
Return on capital EBITDA / Interest Expense
Return on equity Capital Structure
Efficiency Debt / Equity
Total asset turnover Debt / Capital
Fixed asset turnover

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Section 2 Industry and sub-industry overview

01. Introduction

02. Industry and sub-industry overview

03. Key performance indicators wholesale industry

04. Electrical & electronics equipment & components wholesalers

05. Food & grocery wholesalers

06. Containers, packaging, paper & forest products wholesalers

07. Appendix supporting schedules

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Industry and sub-industry overview

Industry overview
US wholesale and distribution market
The US wholesale market is a remarkably large and complex universe. It represents $6TRN of sales from
over 300,000 distributors as of May, 20141
Sales are most broadly segregated between nondurable (54%) and durable (46%) goods which are further
broken down into the categories 2 in the charts below
In the US, the industry is highly fragmented with the 50 largest distributors generating approximately 25
percent of the industry revenues1

Durable Goods Industry ($ billions) Non-Durable Goods Industry ($ billions)

Motor, parts & supplies Paper & packaging


146 49
248 228 Home furnishings Pharmaceuticals
73 259

35 Lumber & construction Apparel


69 69
Commercial equipment 130 Grocery products
437
Computer equipment Farming products
242
262 Metals & Minerals Chemicals
348
90 Electrical goods 73 Petroleum
152 146
Plumbing & heating equipment Beer & Wine
Machinery equipment Miscellaneous nondurable
Sources:
1. Industry Profile Wholesale Sector Report, First Research, May 2014
2. U.S. Census Bureau Most Recent Data as of May, 2014

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Industry and sub-industry overview

Sub-industry overview
Median values for metrics by sub-industry
Sample Market Total Gross SG&A as EBITDA Return on Return on Return on
Sub-Industry Size P/E Capital Rev enue Margin % of Sales EBIT Margin Margin Total Assets Capital Equity
($ in millions) Market Data Profitability

Petroleum 21 26.6 $ 804 $ 1,638 9.7% 3.3% 2.8% 4.4% 4.1% 5.6% 12.5%
Pharmaceuticals 11 24.2 1,067 811 56.6% 12.8% 4.5% 6.5% 6.7% 15.7% 17.4%
Commercial Equipment 8 19.8 2,107 3,206 24.8% 18.6% 5.6% 6.2% 7.5% 10.7% 15.3%
Motor, parts and suppliers 7 19.3 4,224 1,140 30.4% 23.5% 7.2% 8.2% 2.7% 6.6% 9.4%
Machinery Equipment 13 18.5 1,376 1,300 28.0% 19.5% 6.9% 9.0% 6.8% 9.0% 12.9%
Chemicals 5 17.1 79 210 34.5% 35.2% 8.0% 10.7% 7.6% 8.8% 9.0%
Electrical Goods 14 16.2 140 110 21.2% 17.2% 3.8% 4.4% 3.4% 5.2% 4.2%
Metals and Minerals 14 14.0 330 1,016 17.6% 11.5% 1.7% 3.0% 1.9% 2.9% 1.8%
Paper and Packaging 7 13.6 121 1,228 20.0% 14.1% 1.3% 2.0% 2.8% 5.0% 9.2%
Farming Products 2 12.2 1,474 3,939 11.9% 7.8% 4.1% 5.4% 3.5% 4.8% 13.6%
Computer Equipment 15 10.8 464 517 11.3% 8.7% 1.3% 3.0% 2.3% 7.0% 7.5%
Miscellaneous 15 6.4 52 828 23.9% 20.0% 4.3% 5.1% 4.6% 6.7% 9.3%
Apparel 3 1.2 25 63 32.7% 27.7% 5.0% 5.9% 6.6% 8.1% 6.5%
Grocery Products 11 0.2 181 130 17.4% 16.4% 3.1% 3.9% 7.1% 9.6% 5.4%

Industry Median 16.2 $ 432 $ 819 19.9% 14.2% 3.5% 4.5% 4.7% 7.0% 10.0%
P/E correlation 32.5% 22.5% (25.0)% 21.8% 29.7% (6.1)% 17.2% 55.9%

Key observations
The fourteen sub-industry's comprising the Wholesale market have materially different characteristics which places limitations on industry wide analysis.
Some such characteristics are Capital intensive (Machinery equipment, Chemicals) or High volume low margin (Petroleum, Computer equipment).
Consequently this overview section is broad brush and directional
By way of background the sub-industry median P/E multiple ranges from 0.2 to 26.6 with a median of 16.2. In comparison the:
Dow industrial is 16.36
Dow transportation 18.74
S&P 500 18.26
Sources: 1. Capital IQ 2.WSJ June 4, 2014
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Industry and sub-industry overview

Sub-industry overview
Median values for metrics by sub-industry
Total Asset Fix ed Asset Current Quick Debt / EBITDA / Net Debt / Debt / Debt /
Sub-Industry P/E Turnov er Turnov er DSO DPO DIO Ratio Ratio EBITDA Int. ex p. EBITDA Equity Capital
($ in millions) Market Data Efficiency Cash Cy cle Liquidity Lev erage Capital Structure

Petroleum 26.6 2.1 4.6 22.9 28.6 8.2 1.4 1.0 4.4 5.6 4.4 77.8% 51.4%
Pharmaceuticals 24.2 2.3 36.6 27.8 47.5 33.4 1.3 0.7 1.4 9.2 2.0 46.5% 31.2%
Commercial Equipment 19.8 2.0 54.9 41.6 32.1 70.1 1.8 1.0 1.0 14.8 0.9 20.5% 15.0%
Motor, parts and suppliers 19.3 0.8 5.9 57.4 47.2 100.0 1.6 0.9 2.6 11.4 2.4 25.8% 19.2%
Machinery Equipment 18.5 1.7 12.0 50.8 34.6 77.4 2.0 1.2 3.2 10.7 3.3 53.6% 34.3%
Chemicals 17.1 1.0 3.8 38.6 61.7 88.6 2.5 1.4 1.0 21.3 53.6 5.9% 5.3%
Electrical Goods 16.2 1.8 36.0 53.0 46.0 53.0 4.1 1.9 2.1 6.9 2.0 14.5% 10.8%
Metals and Minerals 14.0 1.6 6.9 41.1 24.4 73.8 3.0 1.3 4.3 5.4 4.5 52.9% 34.4%
Paper and Packaging 13.6 3.2 21.3 36.3 27.8 55.5 2.0 1.0 2.6 6.8 2.6 57.9% 38.1%
Farming Products 12.2 1.8 8.7 38.2 25.1 87.2 2.5 0.8 3.4 8.4 2.8 29.1% 17.8%
Computer Equipment 10.8 2.4 79.0 62.6 50.8 30.9 1.6 0.8 1.5 10.9 1.7 16.4% 12.3%
Miscellaneous 6.4 1.8 36.6 41.9 37.8 62.3 2.1 1.0 1.8 5.3 2.1 1.6% 3.0%
Apparel 1.2 1.4 20.2 51.7 20.7 102.2 4.9 2.3 0.3 77.3 1.2 1.2% 1.2%
Grocery Products 0.2 3.6 25.6 28.4 21.1 28.4 1.7 0.9 1.3 5.0 1.0 16.3% 17.0%

Industry Median 16.2 1.9 20.1 39.7 35.6 38.8 1.9 1.1 2.1 7.1 2.7 25.8% 20.4%
P/E correlation (27.0)% (15.6)% (20.9)% 40.5% (20.1)% (43.4)% (34.9)% 43.3% (40.9)% 14.3% 62.4% 60.2%

US Wholesale and Distribution market


The closest correlation between the sub-industry median P/E multiple and key metrics are:
Return on equity 55.9% correlation;
Debt / equity 62.4%; and
Debt / capital 60.2%
The above correlations are expected as these ratios are related to equity and net income, an absolute measure of profitability, and risk factors such as a
Companys ability to meet its liabilities and confidence in the business
Similar correlation was not observed for Profitability metrics such as Gross margin (22.5% correlation) and EBITDA margin (29.7% correlation)
Sources: 1. Capital IQ 2.WSJ June 4, 2014
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Section 3 Key performance indicators wholesale industry

01. Introduction

02. Industry and sub-industry overview

03. Key performance indicators wholesale industry

04. Electrical & electronics equipment & components wholesalers

05. Food & grocery wholesalers

06. Containers, packaging, paper & forest products wholesalers

07. Appendix supporting schedules

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Key performance indicators wholesale industry

Key performance indicators wholesale industry


Wholesale industry in aggregate (Median analysis) Key observations
The table opposite sets out the median KPI's for the Top 10 (ranked by P/E
($ in millions) Top 10 Aggregate Bottom 10 multiple), Aggregate and Bottom 10 publicly traded wholesalers. The key
Market Value
observations are:
PE multiple 22.9 16.2 (71.9) Size
Rev enue $ 263.5 $ 819.3 $ 253.2 Revenue level is not a driver of P/E multiple
Market Cap $ 194.8 $ 432.5 $ 344.8
The correlation between revenue and the P/E multiple is only 13%
Profitability
GM % 21.2% 19.9% 23.0% Profitability
SGA % 17.2% 14.2% 20.8% Despite a correlation of only 8% between EBIT margin and P/E, the Top 10
EBIT margin 4.3% 3.5% 0.5% companies have higher EBIT margins than both the Aggregate and Bottom 10
EBITDA margin 4.9% 4.5% 3.2% company's
ROA 3.4% 4.7% 0.5%
The Top 10 businesses deliver this with a balanced focus on GM and SG&A cost
ROC 5.2% 7.0% 0.9%
control. However SG&A is the primary differentiator between poor performers
ROE 4.2% 10.0% (3.1%)
and Aggregate
Return on assets, return on capital and return on equity ratios highlight that the
Aggregate group delivers a greater return on capital than the Top 10 companies.
Top 10 Sub-industry Bottom 10 Sub-industry
This highlight's a critical point which is that while the P/E multiple is the ultimate
CTD Holdings Inc. Chemicals Digital Riv er Inc. Computer Equipment
Infosonics Corp. Electrical Goods Agily sy s Inc. Computer Equipment
metric for publicly traded companies and lenders and investors it does not
Richardson Electronics Ltd. Electrical Goods Coffee Holding Company , Inc. Grocery Products correlate to pure financial metrics and is impacted by a number of subjective
Univ ersal Pow er Group Inc. Electrical Goods Central Garden & Pet Company Grocery Products factors including:
Central Steel and Wire Company Metals and Minerals GreenParts International, Inc. Metals and Minerals
confidence and risk, core financial performance, market sentiment,
SemGroup Corporation Petroleum InnerWorkings Inc. Miscellaneious
Plains GP Holdings, L.P. Petroleum Ironclad Performance Wear Corp.Miscellaneious
competitive landscape, company leadership, and industry and technology
NGL Energy Partners LP Petroleum Coast Distribution Sy stem Inc. Motor, parts and suppliers trends
Arc Logistics Partners LP Petroleum Stock Building Supply Holdings, Inc.
Paper and Packaging The difference between the EBIT and EBITDA margins for the Top 10 is 0.6%
Amex drug Corp. Pharmaceuticals Martin Midstream Partners LP Petroleum
as compared to 2.7% for the Bottom 10, indicating higher depreciation and
amortization. The sub-industry category table illustrates that the Top 10 are heavily
weighted by Electrical and Petroleum companies with higher initial capital
investment as compared to the diversified sub-industries included for the Bottom
Notes: 1 - Includes Companies under the SIC codes 5000 Durable goods wholesale and 5100 Non-
10 analysis
durable goods wholesale; the data set has been scrubbed by GT for outliers, anomalies,
companies that have ceased operations and that do not actively trade We have analyzed drivers behind this in more detail when looking at specific
Sources: Capital IQ industries
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Key performance indicators wholesale industry

Key performance indicators wholesale industry


Wholesale industry in aggregate (Median analysis) Key observations
The table opposite sets out the median KPI's for the Top 10 (ranked by P/E
($ in millions) Top 10 Aggregate Bottom 10 multiple), Aggregate and Bottom 10 publicly traded wholesale. The key observations
Efficiency are:
TA turnov er 1.8 1.9 1.7 Efficiency
FA turnov er 36.0 20.1 15.0 The Top 10 companies are significantly outperforming the Aggregate in terms of
Cash Cycle Fixed Asset turnover, which means that these business either require less
DSO 53.0 39.7 58.0 investment in fixed assets than Aggregate or that they are managing them more
DPO 46.0 35.6 37.2 efficiently
DIO 64.2 38.8 50.6
We will analyse this in detail in the individual sector sections
Liquidity
Current ratio 3.6 1.9 2.4 Cash cycle
Quick ratio 1.4 1.1 1.5 The Top 10 companies have a 71 day cash cycle vs 42.9 for Aggregate and 71.4
Leverage for the Bottom 10. All three appear to be collecting receivables less than 60 days
Debt / EBITDA 2.2 2.1 4.5 and are paying vendors in less than 45 days
EBITDA / Int ex pense 3.7 7.1 3.0 This is surprising and could be driven by:
Capital Structure
the Top 10 companies holding greater inventory to be able to ensure rapid
Debt / Equity 14.5% 25.8% 47.2%
service of clients needs
Debt / Capital 10.8% 20.4% 31.6%
The Top 10 may have been able to negotiate longer payment terms because of
their strength
Liquidity
These metrics are indicators of risk and a Company's ability to meet it's liabilities
when they fall due
The Top 10 have much higher ratios than the Bottom 10. This would be an
attractive metric for lenders and investors
Leverage and capital structure
These ratios suggest that the Top 10 have much lower debt leverage and better
capital structures than those of the Bottom 10
Notes: 1 - Includes Companies under the SIC codes 5000 Durable goods wholesale and 5100 Non- It is not surprising therefore that there is a high correlation between P/E multiples
durable goods wholesale; the data set has been scrubbed by GT for outliers, anomalies,
companies that have ceased operations and that do not actively trade and favorable ratios. This speaks to market sentiment, business confidence and
Sources: Capital IQ
appropriate balance sheet structures that minimize risk
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Section 4 Electrical & electronics equipment & components wholesalers

01. Introduction

02. Industry and sub-industry overview

03. Key performance indicators wholesale industry

04. Electrical & electronics equipment & components wholesalers

05. Food & grocery wholesalers

06. Containers, packaging, paper & forest products wholesalers

07. Appendix supporting schedules

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Electrical & electronics equipment & components wholesalers

Industry overview - Electrical & electronics equipment & components wholesalers


Overview
17.5% or $241BN of durable goods segment
Wholesalers of electrical construction materials, wiring supplies, electric light fixtures, light bulbs, security systems and
electrical power equipment for the generation, transmission, distribution or control of electric energy (e.g. switchboards,
circuit breakers, switches and fuses)
Drivers of change include
Offshoring of production
Industry consolidation
Rebound in the construction industry
Competition from e-tailers which are cutting out wholesalers
Demand factors
Corporate profits
Price of semiconductor and electronic components
Per capita disposable income
Demand from building, developing and general contracting
Electric power consumption
Demand from manufacturing

Sources: IBIS World Report and U.S. Bureau of Labor Statistics

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Electrical & electronics equipment & components wholesalers

Industry overview - Electrical & electronics equipment & components wholesalers


Competitive market characteristics
Low market concentration
Low barriers to entry
Low capital intensity
High internal competition
Medium technology change
Key Success Factors
Ability to quickly adopt new technology
Provision of superior after sales service
Establishment of brand names
Having links with suppliers
Ability to control stock on hand

Sources: IBIS World Report and U.S. Bureau of Labor Statistics

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Electrical & electronics equipment & components wholesalers

Comparables Electrical & electronics equipment & components wholesalers


Industry comparables
Stock Performance LTM Margins TEV / EBITDA Revenue
Current 1-Month 1-Year % of LTM 3 Year
Company Name TEV ($MM) Price Change Change High EBITDA Gross 2013 LTM 2014E CAGR
Electrical & Electronics Equipment & Components Wholesalers
Universal Power Group Inc. $ 20 $ 1.65 6.5% (3.5% ) 75.0% 1.7% 19.7% n/a - (9.7% )
ADDvantage Technologies Group Inc. 32 3.00 (7.7% ) 33.1% 84.5% 6.1% 27.7% 10.4x - (8.4% )
Houston Wire & Cable Company 269 11.68 (3.1% ) (16.6% ) 77.5% 7.1% 21.8% 9.7x 9.1x 3.9%
WESCO International Inc. 5,227 85.97 (2.1% ) 15.8% 90.7% 6.6% 20.5% 10.4x 9.5x 12.0%
Anixter International Inc. 4,109 101.91 4.2% 32.8% 88.0% 6.2% 23.0% 10.7x 10.1x 4.6%
Wireless Xcessories Group Inc. 4 0.96 (5.9% ) (56.6% ) 36.9% 1.2% 18.3% n/a - 27.2%
TESSCO Technologies Inc. 247 30.72 (6.2% ) 34.4% 73.2% 5.4% 24.7% 7.5x - (2.6% )
Arrow Electronics, Inc. 7,674 57.89 2.3% 45.6% 94.6% 4.4% 13.2% 8.4x 7.6x 3.0%
Avnet, Inc. 7,150 43.64 1.5% 27.8% 90.6% 3.7% 11.7% 8.0x 6.9x 2.9%
Surge Components Inc. 2 0.80 3.9% 23.3% 86.0% 5.6% 27.0% 1.6x - 5.0%
Taitron Components Inc. 4 0.99 (3.0% ) (1.0% ) 69.9% (13.1% ) 22.6% (6) - (5.9% )
5Barz International Inc. 36 0.20 2.6% 30.1% 55.7% - - (11) - -

Median (0.3%) 25.5% 81.0% 4.9% 21.2% 8.2x - 3.0%


Mean (0.6%) 13.8% 76.9% 2.9% 19.2% 4.9x 3.6x 2.7%

S&P Performance 2.3% 17.3% 99.8%


Key observations
The key things investors and lenders would look at on this slide would be the industry CAGR, stock performance and the EBITDA margin %
Stock performance is ahead of S&P's on a median basis. This provides positive sentiment. However, the group has realized a CAGR of 3.0% and hence,
further analysis would indicate that the positive year over year stock price change is not driven by core Company performance, but more by the general
uplift in the market sentiment and positive outlook for overall electrical, electronics and telecommunications industry as evidenced by the NASDAQ annual
return of 22.3%2. The 3% CAGR indicates slow growth in the industry, and would lead stakeholders to look to see if the industry is maturing
Median EBITDA margin of 4.5% would suggest that this industry's players might not be able to support much debt burden so stakeholders would look at
capital structures
Sources: 1. Capital IQ 2. Wall Street Journal
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Electrical & electronics equipment & components wholesalers

Key performance indicators Electrical & electronics equipment & components


wholesalers
Electrical equipment & components wholesale (Median analysis) Key observations
Wholesale This analysis is based upon a sample of 13 businesses
($ in millions) Top 5 Aggregate Bottom 5 Industry ov erall Market capitalization
Market Value
PE multiple 27.1 15.9 (5.6) 16.2
The P/E multiple is highly correlated to revenue size, with the Top 5
Rev enue $ 389.3 $ 81.6 $ 26.3 $ 819.3
Companies revenue being 4.8 times Aggregate and the Bottom 5
Market Cap $ 235.7 $ 125.6 $ 35.2 $ 432.5 companies being a quarter of Aggregate
Profitability Profitability
GM % 21.8% 20.5% 11.7% 19.9% The Top 5 and Aggregate businesses profitability metrics are very closely
SGA % 17.2% 17.1% 8.4% 14.2% aligned indicating that the EBIT margin is driven by volume
EBIT margin 5.8% 4.3% 1.6% 3.5%
EBITDA margin 6.2% 4.9% 1.9% 4.5% The delta between the EBIT and EBITDA margins for all three categories
ROA 5.8% 4.8% (3.1)% 4.7% is very similar at 0.4%, this is less than the 1% for the wholesale industry as
ROC 8.3% 8.1% - 7.0% whole and implies less investment in capital expenditure
ROE 7.0% 7.0% (5.7)% 10.0% Further analysis of the sub-industry indicate that the larger companies in
the group (as measured by Revenue and Market cap) enjoy a much higher
EBITDA margin, ROE and ROA indicators. This is indicative that larger
firms in this sub-industry are able to enjoy economies of scale and
synergistic operations
The Bottom 5 businesses have significantly lower gross margins which
means that despite their SG&A control they will struggle to deliver EBIT
comparable to their better performing competitors
This sub-industry performs significantly ahead of industry in terms of
margin and also P/E multiple despite being smaller (Revenue and Market
cap) than the wider industry

Notes: 1 - Includes Companies under the SIC code 5060 Electrical goods - wholesale (Primary); the data set has
been scrubbed by GT for outliers, anomalies, companies that have ceased operations and that do not
actively trade 2. Please see appendix for detailed breakdown
Sources: Capital IQ

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Electrical & electronics equipment & components wholesalers

Key performance indicators Electrical & electronics equipment & components


wholesalers
Electrical equipment & components wholesale (Median analysis) Efficiency
Wholesale Fixed asset turnover is materially above the industry average of 20.1. This
($ in millions) Top 5 Aggregate Bottom 5 Industry ov erall indicates that the Companies in the sub-industry are effectively using their
Efficiency capital and have either outsourced logistic or have maximized their
TA turnov er 1.7 1.7 0.4 1.9 footprint compared to wider industry counter parts
FA turnov er 55.2 34.7 1.3 20.1
Cash Cycle
The Top 5 companies are significantly outperforming both aggregate and
DSO 53.4 49.4 29.0 39.7
the bottom 5 in relation to FA turnover. This may reflect challenges
DPO 46.5 46.5 39.1 35.6 associated with the cost of infrastructure in businesses with shrinking
DIO 104.2 51.0 18.3 38.8 revenues
Liquidity Cash cycle
Current ratio 2.6 2.6 3.7 1.9 The average cash cycle for the Top 5 companies is 111 days, primarily
Quick ratio 1.3 1.3 2.6 1.1
because of the 104 days of inventory on hand. This compares to 53 days
Leverage
for the Aggregate, 8 days for the Bottom 5 and 43 days for the industry
Debt / EBITDA 3.0 2.2 1.0 2.1
EBITDA / Int ex pense 8.6 7.9 - 7.1 This would suggest that one of the key requirements in the sector is scale
Capital Structure and being able to carry additional and diverse inventory to be able to
Debt / Equity 52.0% 14.5% 9.0% 25.8% quickly meet customer orders. This would support both the high
Debt / Capital 33.6% 12.4% 8.3% 20.4% performance of the Top 5 and the difficulty for the Bottom 5
However, upon closer examination, only the smaller size companies
(Market Cap < $250MM) of the Top 5 have a very high DIO. The larger
firms (Market Cap >$1BN) within the Top 5 and Bottom 5 have DIO
days that track the Aggregate. Hence, it can be inferred that the smaller
firms might be holding larger inventory balances on a relative basis,
including possibly obsolete inventory
Liquidity, leverage and capital structure
Despite the significant investment in inventory the Top 5 companies
current ratio is in line with the Aggregate current ratio, indicating lower
short term borrowings and that the debt to equity is driven by a lower
Notes: 1 - Includes Companies under the SIC code 5060 Electrical goods - wholesale (Primary); the data set has
been scrubbed by GT for outliers, anomalies, companies that have ceased operations and that do not equity investment and not significant debt
actively trade
Sources: Capital IQ The P/E multiple will be flattered by the Debt / EBITDA ratio which
2014 Grant Thornton | NAW Roundtable | June 2014
while higher than the Aggregate and overall industry are not at risky levels
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Section 5 Food & grocery wholesalers

01. Introduction

02. Industry and sub-industry overview

03. Key performance indicators wholesale industry

04. Electrical & electronics equipment & components wholesalers

05. Food & grocery wholesalers

06. Containers, packaging, paper & forest products wholesalers

07. Appendix supporting schedules

2014 Grant Thornton | NAW Roundtable | June 2014


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Food & grocery wholesalers

Industry overview Food & grocery wholesalers


Overview
21.5% or $348BN of non-durable goods segment
Grocery wholesale distributors focus are typically either fresh or frozen foods distributors. Distributors of fresh foods,
typically specialize in a limited line of goods, whereas distributors of canned or frozen foods cover a wider selection
Drivers of change
Discerning consumers
Low calories
Offer additional health benefits
Industry consolidation
Supermarket consolidation and slow growth from supermarkets its putting wholesalers under pressure
Demand factors
Food service and consumption demand
Mature supermarket industry
Agriculture price fluctuations
Efficiency in distribution channels

Sources: IBIS World Report and U.S. Bureau of Labor Statistics

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Food & grocery wholesalers

Industry overview Food & grocery wholesalers


Competitive market characteristics
Low market concentration
Medium barriers to entry
High capital intensity
Medium internal competition
Medium technology change
Key success factors
Expert operators
Close supplier relationships
Access to specialty goods and niche markets
Efficient and effective quality and distribution processes

Sources: IBIS World Report and U.S. Bureau of Labor Statistics

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Food & grocery wholesalers

Comparables Food & grocery wholesalers


Industry comparables

Stock Performance LTM Margins TEV / EBITDA Revenue


Current 1-Month 1-Year % of LTM 3 Year
Company Name TEV ($MM) Price Change Change High EBITDA Gross 2013 LTM 2014E CAGR
Food & Grocery Products Wholesalers
ForeverGreen Worldwide Corporation $ 29 $ 1.35 (17.2% ) 350.0% 67.5% 3.7% 75.0% 53.6x - 32.9%
United Natural Foods, Inc. 3,599 67.29 (0.2% ) 27.2% 84.5% 3.9% 16.8% 15.7x 13.4x 16.0%
The Chefs' Warehouse, Inc. 580 18.33 (2.7% ) (2.9% ) 61.1% 5.9% 25.4% 13.1x 12.2x 28.1%
Sysco Corporation 24,788 37.64 3.9% 11.4% 86.7% 5.3% 17.4% 10.0x 10.7x 5.3%
Calavo Growers Inc. 556 33.39 8.2% 12.4% 90.3% 5.5% 9.2% 16.5x 13.3x 20.1%
Zurvita Holdings, Inc. 18 0.13 (47.7% ) (70.8% ) 28.5% (9.3% ) 19.6% n/a - 49.2%
Consumer Capital Group Inc. 98 5.00 - (0.8% ) 34.5% (14.6% ) 1.4% (104) - (26.4% )
Innovative Food Holdings, Inc. 11 1.42 (6.6% ) 294.3% 71.0% 6.2% 29.0% 8.3x - 33.4%
Pizza Inn Holdings, Inc. 53 5.97 0.2% 23.9% 65.7% (0.9% ) 7.5% 79.6x - 0.3%
Coffee Holding Company, Inc. 44 7.62 2.4% 8.9% 88.8% (0.4% ) 4.9% (42) - 14.0%
Central Garden & Pet Company 909 7.75 (4.6% ) (0.3% ) 89.7% 5.4% 27.9% 10.6x 9.2x 1.6%

Median (0.2%) 11.4% 71.0% 3.9% 17.4% 11.9x - 16.0%


Mean (5.8%) 59.4% 69.9% 1.0% 21.3% 6.1x 5.4x 15.9%

S&P Performance 2.3% 17.3% 99.8%

Key observations
Despite the strong revenue growth of 16% CAGR, this sub-industry has underperformed the S&P by almost 6.0%
This sub-industry's performance is highly sensitive to external changes such as food, transportation and commodities prices. Further, it has a low EBITDA
margin of 3.9%. Consequently, it is not surprising that the P/E multiple reflects the risks associated within this sub-industry
Our analysis of the Bottom 10 companies' performance indicates signs of distress and loss, which weighs the Aggregate P/E multiple downwards as
illustrated on the next page

Sources: 1. Capital IQ

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Food & grocery wholesalers

Key performance indicators Food & grocery wholesalers


Food and groceries wholesale industry (Median analysis) Key observations

Wholesale The table opposite sets out the median KPI's for the Top 5 (ranked by P/E
($ in millions) Top 5 Aggregate Bottom 5 Industry ov erall multiple), Aggregate and Bottom 5 publicly traded wholesalers. The key
Market Value observations are:
PE multiple 27.7 0.2 (26.9) 16.2 Market capitalization
Rev enue $ 748.7 $ 130.0 $ 42.4 $ 819.3
Company size, as measured by revenue, seems to matter in determining the
Market Cap $ 525.0 $ 181.2 $ 49.2 $ 432.5
P/E ratio multiple; the Top 5 have a much higher market capitalization
Profitability
and revenues than that of the Bottom 5
GM % 17.4% 17.4% 7.5% 19.9%
SGA % 13.6% 16.4% 16.4% 14.2% Profitability
EBIT margin 4.3% 3.1% (0.8)% 3.5% Average gross margin for the Top 5 companies in the sub-industry is
EBITDA margin 5.3% 3.9% (0.4)% 4.5% approximately 2.5% lower than the overall industry average. However, the
ROA 9.1% 7.1% (2.2)% 4.7% Bottom 5 appear to have a gross margin significantly lower. This would
ROC 11.0% 9.6% (2.8)% 7.0% signify that the top companies are able to negotiate better terms with their
ROE 17.9% 5.4% (15.2)% 10.0% vendors. This metric is especially important to lenders
Average SG&A as a % of sales for Top 5 companies is 0.6% lower than
Note on P/E multiple the industry average indicating better overhead management, thus resulting
While the Aggregate P/E multiple for this sub-industry is 0.2, this is in a higher EBIT margin. This helps offset the lower than industry gross
skewed by a large negative multiple for Central Garden and Pet Company. margins. However, the sub-industry average is almost 2.2% higher than the
When normalized for Central Garden and Pet Co., the median Aggregate is wholesale industry average, indicating that most companies are not able to
11.1 times manage overhead as efficiently
The P/E multiple for the Top 5 companies is 27.7, much higher than the Average Top 5 and Aggregate ROA is higher than the industry average by
industry median of 16.2. Most of the Top 5 companies are large in size and almost 3.0% to 5.0%. This ratio is significantly lower for the Bottom 5,
have CAGR growth of an average of 20.5%, justifying the higher multiple which appear to be in distress
In comparison, the Bottom 5 companies have a P/E multiple of (26.9)%. The difference between the EBIT and EBITDA margins for Top 5
These companies are much smaller in size and have negative ROE, companies is almost 1.0% as compared to 0.4% for Bottom 5, implying
justifying the negative multiple higher capital investment, which helps fuel growth and may reflect M&A
activity in the sector
Notes: 1 - Includes Companies under the SIC code 5140 Groceries and related products - wholesale (Primary); the data
set has been scrubbed by GT for outliers, anomalies, companies that have ceased operations and that do not
actively trade
Average Aggregate ROE appears to be almost half of the industry average.
Sources: Capital IQ However, after eliminating the outliers, it increases to 10.9%, inline with
2014 Grant Thornton | NAW Roundtable | June 2014
industry average. This metric is especially important for investors
24
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Food & grocery wholesalers

Key performance indicators Food & grocery wholesalers


Food and groceries wholesale industry (Median analysis) Key observations
Wholesale The table opposite sets out the median KPI's for the Top 5 (ranked by P/E
($ in millions) Top 5 Aggregate Bottom 5 Industry ov erall multiple), Aggregate and Bottom 5 publicly traded wholesalers. The key
Efficiency observations are:
TA turnov er 3.6 3.6 3.1 1.9
Efficiency
FA turnov er 18.5 25.6 25.6 20.1
Cash Cycle Total asset turnover and fixed asset turnover ratios are much higher than
DSO 27.4 28.4 29.1 39.7 the wholesale industry average both for the Top 5 and for the Aggregate
DPO 21.1 21.1 27.2 35.6 companies. This appears to be in line with the hypothesis that a lot of
DIO 35.1 28.4 28.4 38.8 companies in this sub-industry employ sub-contracted transportation
Liquidity companies rather than owning trucking fleets, which would inflate the
Current ratio 1.7 1.7 1.7 1.9 fixed assets on the balance sheet
Quick ratio 0.9 0.9 1.0 1.1
The correlation between total asset turnover and the P/E multiple is
Leverage
approximately 40%, suggesting that the higher the efficiency, the more
Debt / EBITDA 1.3 1.3 1.4 2.1
positively the company is rewarded by investors
EBITDA / Int ex pense 19.7 5.0 1.3 7.1
Capital Structure Cash cycle
Debt / Equity 40.3% 16.3% 9.1% 25.8% The cash cycle for the Top 5 companies is 41 days, compared to 43 days
Debt / Capital 35.7% 17.0% 8.0% 20.4% for the Aggregate wholesale companies
The Bottom 5 companies have a cash cycle of approximately 30 days,
implying lower working capital needs
Liquidity
Liquidity is an especially important KPI for the lenders and given that this
sub-industry has a lower than industry DSO, the availability of asset based
lending is low, forcing companies to rely on cash flow based lending
Leverage and capital structure
Leverage tends to be higher for Top 5 as compared to Bottom 5, implying
greater funding availability
Notes: 1 - Includes Companies under the SIC code 5140 Groceries and related products - wholesale (Primary); the data
set has been scrubbed by GT for outliers, anomalies, companies that have ceased operations and that do not
actively trade
Sources: Capital IQ

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Section 6 Containers, packaging, paper & forest products wholesalers

01. Introduction

02. Industry and sub-industry overview

03. Key performance indicators wholesale industry

04. Electrical & electronics equipment & components wholesalers

05. Food & grocery wholesalers

06. Containers, packaging, paper & forest products wholesalers

07. Appendix supporting schedules

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Containers, packaging, paper & forest products wholesalers

Industry overview Containers, packaging, paper & forest products wholesalers


Overview
3.0% or $48BN of non-durable goods segment
Key products sold include writing and printing paper, newspaper, coated and laminated paper, packaging materials, paper
board, plastics foil and paper bags
Industry trends
The sector is experiencing year on year declines in demand and production as result of move from print to electronic
media and communication
Five year revenue forecast to decline at an average annual rate of 1.6%
Horizontal expansion - increased partnership trends amongst paper wholesalers and manufacturers with companies that
offer complementary products like print management and software, to sustain demand and enhance growth
Increased vertical integration trends merging manufacturing and distribution in order to gain from economies of scale
through reduced transportation and operating costs and to contain the degree of wholesale bypass
Drivers of change
Increasing competition from technology and internet
Developments in media technology

Sources: IBIS World Report and U.S. Bureau of Labor Statistics

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Containers, packaging, paper & forest products wholesalers

Industry overview Containers, packaging, paper & forest products wholesalers


Demand factors
Increased demand from cardboard box and container manufacturing
Paper converters - analyst estimates, accounts for 21.5% of revenue in the industry and marks an increase from previous
levels driven by increased demand for cardboard packaging products
Demand for laminated and coated paper has also increased over the same period as companies turned to direct mail
advertising in the stead of more costly advertising mediums
Decreased demand from printing and publishing
Increase in paper price
Competitive market characteristics
Low market concentration
Low barriers to entry
Medium capital intensity
High internal competition
Medium technology change
Key success factors
Proximity to key markets and constituents
Automation
Cost pass-through

Sources: IBIS World Report and U.S. Bureau of Labor Statistics

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Containers, packaging, paper & forest products wholesalers

Comparables Containers, packaging, paper & forest products wholesalers


Industry comparables

Stock Performance LTM Margins TEV / EBITDA Revenue


Current 1-Month 1-Year % of LTM 3 Year
Company Name TEV ($MM) Price Change Change High EBITDA Gross 2013 LTM 2014E CAGR
Containers, Packaging, Paper & Forest Products Wholesalers
Sealed Air Corporation $ 11,548 $ 33.13 (0.2% ) 37.9% 89.1% 13.7% 34.0% 11.1x 10.6x 19.0%
Insignia Systems Inc. 21 3.18 4.3% 59.8% 91.4% 9.9% 44.4% 6.0x - (2.7% )
ZAGG Inc 132 4.58 2.7% (9.3% ) 77.2% 15.8% 39.6% 3.8x 4.0x 32.0%
3M Company 97,356 142.32 1.6% 29.1% 99.3% 26.1% 48.0% 12.1x 11.5x 4.0%
Bemis Company, Inc. 5,482 41.26 2.7% 5.4% 97.4% 12.3% 19.3% 8.9x 8.5x (0.8% )
Avery Dennison Corporation 5,650 49.94 3.2% 14.8% 95.6% 10.1% 26.5% 9.0x 7.9x 2.5%
Orchids Paper Products Company 243 29.73 12.1% 18.8% 86.9% 22.1% 23.3% 9.3x 8.7x 7.7%
CSS Industries Inc. 119 23.38 (6.0% ) (15.4% ) 73.2% 11.1% 32.2% 3.2x - (5.8% )
SugarMade, Inc. 1 0.02 57.5% (95.0% ) 1.4% n/a (105.7% ) n/a - -
Proguard Acquisition Corp 1 0.10 - (50.0% ) 5.3% (0.9% ) 13.2% n/a - -
ADB International Group, Inc. 6 0.02 19.4% (53.3% ) 21.5% - - n/a - -
Chase Packaging Corp. 2 0.06 20.0% 300.0% 75.0% - - n/a - -

Median 3.0% 10.1% 82.1% 11.1% 24.9% 8.9x 2.0x -


Mean 9.8% 20.2% 67.8% 10.9% 14.6% 7.9x 4.3x 4.7%

S&P Performance 2.3% 17.3% 99.8%

Key observations
Investors and lenders primary focus will be the CAGR, stock performance and EBITDA margin %. The investor's sentiments are reflected by the sub-
industry's stock performance that has been much lower at 10.1% and 5.4% (normalized for Chase Packaging) as compared to that of the overall S&P's at
17.3%
Stock performance below the S&P and no growth will be the primary driver of a lower P/E multiple. However an EBITDA of 1.1% suggests the stronger
businesses can fund debt or diversification and investment
Sources: 1. Capital IQ

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Containers, packaging, paper & forest products wholesalers

Key performance indicators Containers, packaging, paper & forest products


wholesalers
Key observations
Packaging & paper wholesale industry (Median analysis)
This data is extracted from a sample of 9 businesses. The limited sample
Wholesale
has resulted in some anomalies which are outlined below
($ in millions) Top 3 Aggregate Bottom 3 Industry ov erall
Market Value Further Capital IQ has included Zagg Inc.. as a packaging wholesale
PE multiple 39.7 20.1 11.9 16.2 business, which is technically correct, except it is in a niche market
Rev enue $ 216.9 $ 320.5 $ 117.5 $ 819.3 distributing iPhone, cellular phone and other electronic packaging (cover)
Market Cap $ 142.3 $ 251.0 $ 247.0 $ 432.5 items
Profitability Market capitalization
GM % 39.6% 32.2% 23.3% 19.9%
SGA % 24.9% 20.7% 14.1% 14.2%
The median of the Top 3 Company's P/E multiple fairly reflects
EBIT margin 9.8% 8.7% 8.7% 3.5% performance, however the revenue of $216.9 is skewed as the Top
EBITDA margin 13.7% 12.3% 11.1% 4.5% company has revenue or $7,690
ROA 5.3% 6.0% 6.0% 4.7% When normalized for this company, a correlation between size and P/E
ROC 7.7% 8.5% 6.9% 7.0% multiple is not as apparent
ROE 4.0% 12.1% 11.5% 10.0%
However, given the challenges and projected downward trend in this sub-
industry, it would seem reasonable that a premium is placed on scale in the
sub-industry, which would allow for economies of scale, diversification and
investment in new technologies as well as possible consolidation to realize
inorganic growth or gain of market share
Profitability
The Top 3 businesses have both higher GM% and SG&A% than the
Aggregate but due to the volume this translates into a higher EBIT and
EBITDA, reconfirming the importance of size in this industry
The Top 3 and Aggregate have a 1% delta between EBIT and EBITDA
more than the Bottom 3 indicating higher D&A expenses resulting from
higher depreciable asset balances and/or higher amortization expenses
related to recent transaction
Notes: 1 - Includes Companies under the SIC codes 2670 Converted paper and paperboard products, except
containers and boxes (Primary) and 5110 Paper and paper products - wholesale (Primary); the data set
has been scrubbed by GT for outliers and anomalies
Sources: Capital IQ

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Containers, packaging, paper & forest products wholesalers

Key performance indicators Containers, packaging, paper & forest products


wholesalers
Packaging & paper wholesale industry (Median analysis) Efficiency
Wholesale Fixed asset turnover for the Top 3 is skewed by Zagg Inc. which has a
($ in millions) Top 3 Aggregate Bottom 3 Industry ov erall fixed asset turnover of 45.7, which reflects the relative high value of items
Efficiency sold. When this is normalized the FA turnover for the Top 3 and
TA turnov er 0.9 1.1 1.1 1.9 Aggregate are in line with no clear trends. Similarly the smallest 3 FA
FA turnov er 14.6 6.7 11.6 20.1 turnover is skewed by one company with a FA turnover of 354.6, this is
Cash Cycle skewed because its subsidiaries hold the fixed assets
DSO 60.6 53.0 18.7 39.7
DPO 41.5 41.2 20.4 35.6 When normalized, the FA turnover for the Top 3 and the Bottom 3 would
DIO 56.8 56.8 48.0 38.8 be approximately 6.5, much lower than the industry median and suggesting
Liquidity an inefficient use of capital
Current ratio 3.8 2.5 3.3 1.9 Cash cycle / Liquidity
Quick ratio 1.8 1.3 1.9 1.1
The Top 3 businesses have a 75 day cash cycle compared to an Aggregate
Leverage
of 68 and Bottom 3 of 46. This compares to industry of 42. The primary
Debt / EBITDA - 0.7 0.3 2.1
driver of the 75 day cash cycle are an extended period collecting
EBITDA / Int ex pense 3.0 33.4 107.3 7.1
Capital Structure
receivables compared to the bottom three and the industry average
Debt / Equity - 20.3% 8.0% 25.8% The lower DSO in the Bottom 3 companies could also suggest that those
Debt / Capital - 15.8% 6.8% 20.4% companies might be in distress and might use either factors or other
discounts to collect faster
Leverage and capital structure
Four of the Company's in the sample group appear to be debt free based
upon data within Capital IQ. This creates anomalies, resulting in
inconclusive data. However, lower or no debt does lower default risk
But in Aggregate the sub-industry appears to have healthy EBITDA /
Interest expense coverage at 33.3 compared to an industry average of 7.1.
This masks a number of outliers. For instance:
The business with the highest P/E multiple of 43 Sealed Air
Corporation has Debt / EBITDA of 4.6, EBITDA / Interest expense
Notes: 1 - Includes Companies under the SIC codes 2670 Converted paper and paperboard products, except
containers and boxes (Primary) and 5110 Paper and paper products - wholesale (Primary); the data set coverage of 3.0 which is materially below the industry averages. We
has been scrubbed by GT for outliers and anomalies
Sources: Capital IQ would expect lenders and investors to be paying close attention to this
2014 Grant Thornton | NAW Roundtable | June 2014
and to pricing in a risk discount
31
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Section 7 Appendix supporting schedules

01. Introduction

02. Industry and sub-industry overview

03. Key performance indicators wholesale industry

04. Electrical & electronics equipment & components wholesalers

05. Food & grocery wholesalers

06. Containers, packaging, paper & forest products wholesalers

07. Appendix supporting schedules

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Appendix supporting schedules

Industry metrics Wholesale Industry


Top 10 Companies With Highest P/E ratios in the Industry
Return on
Market Total Gross SG&A as EBIT EBITDA Total Return on Return on
Company Name P/E Capital Rev enue Margin % of Sales Margin Margin Assets Capital Equity
($ in millions) Market Data Profitability

Whole Sale Industry1


Infosonics Corp. 201.5 $ 50 $ 42 18.3% 16.3% (0.8)% (0.2)% (1.0)% (1.2)% 1.0%
SemGroup Corporation 140.6 154 138 29.8% 29.7% 0.1% 0.9% 0.1% 0.1% 0.6%
Plains GP Holdings, L.P. 85.7 9 82 19.7% 18.5% 1.2% 1.7% 1.3% 1.5% 0.6%
CTD Holdings Inc. 51.9 33 33 27.7% 22.9% 4.8% 6.1% 2.0% 2.3% 1.5%
Richardson Electronics Ltd. 27.1 236 389 21.8% 8.7% 6.3% 7.1% 8.0% 9.1% 7.0%
Amex drug Corp. 18.6 3,694 7,516 20.5% 13.8% 5.8% 6.6% 5.8% 8.3% 14.4%
Central Steel and Wire Company 16.4 3,225 6,259 23.0% 17.2% 5.8% 6.2% 7.7% 11.7% 19.7%
Univ ersal Pow er Group Inc. 15.9 4 40 18.3% 17.1% 0.9% 1.2% - - -
NGL Energy Partners LP 15.9 289 560 24.7% 19.9% 4.7% 5.4% 8.7% 14.9% 14.8%
Arc Logistics Partners LP 13.8 5,734 21,590 13.2% 8.8% 3.8% 4.4% 4.8% 8.1% 10.6%
Top 10 Companies Median 22.9 $ 195 $ 264 21.2% 17.2% 4.3% 4.9% 3.4% 5.2% 4.2%
Top 10 Companies Average 58.7 $ 1,343 $ 3,665 21.7% 17.3% 3.3% 3.9% 3.7% 5.5% 7.0%

Industry Median 16.2 $ 432 $ 819 19.9% 14.2% 3.5% 4.5% 4.7% 7.0% 10.0%
Industry Average 11.7 $ 2,290 $ 6,249 24.6% 26.5% 0.3% 2.9% (1.4)% (5.9)% 7.2%

Notes: 1 - Includes Companies under the SIC codes 5000 Durable goods wholesale and 5100 Non-durable goods wholesale; the data set has been scrubbed by GT for outliers, anomalies, companies that have ceased operations and that
do not actively trade
Sources: Capital IQ

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Appendix supporting schedules

Industry metrics Wholesale Industry


Bottom 10 Companies With Lowest P/E ratios in the Industry
Return on
Market Total Gross SG&A as EBIT EBITDA Total Return on Return on
Company Name P/E Capital Rev enue Margin % of Sales Margin Margin Assets Capital Equity
($ in millions) Market Data Profitability

Whole Sale Industry1


Digital Riv er Inc. (35.2) $ 577 $ 376 66.1% 40.1% (2.0)% 7.9% (0.5)% (0.8)% (3.4)%
Coast Distribution Sy stem Inc. (35.4) 18 113 17.8% 17.5% 0.2% 0.8% 0.3% 0.4% (1.6)%
Coffee Holding Company , Inc. (46.4) 32 130 4.9% 5.8% (0.8)% (0.4)% (2.2)% (2.8)% (4.4)%
Martin Midstream Partners LP (61.1) 1,146 1,697 9.7% 1.8% 4.7% 7.9% 4.7% 5.6% (6.0)%
InnerWorkings Inc. (68.3) 393 928 22.7% 20.0% 0.8% 2.1% 0.8% 1.5% (2.3)%
Stock Building Supply Holdings, Inc. (75.6) 531 1,228 23.3% 21.6% 1.0% 2.0% 2.4% 4.3% (5.3)%
Agily sy s Inc. (95.1) 296 101 63.2% 34.4% (4.4)% 4.3% (1.4)% (2.3)% (2.8)%
GreenParts International, Inc. (182.9) 13 15 20.4% 15.8% 4.6% 6.0% 7.0% 8.0% (3.7)%
Ironclad Performance Wear Corporation (207.9) 16 24 31.3% 28.3% (0.5)% 0.1% (0.6)% (0.8)% 2.0%
Central Garden & Pet Company (560.4) 401 1,655 27.9% 24.8% 3.1% 5.4% 2.4% 3.0% (0.1)%
Bottom 10 Companies Median (72) $ 345 $ 253 23.0% 20.8% 0.5% 3.2% 0.5% 0.9% (3.1)%
Bottom 10 Companies Average (137) $ 343 $ 593 28.2% 21.0% 0.7% 3.6% 1.2% 1.6% (2.8)%

Industry Median 16.2 $ 432 $ 819 19.9% 14.2% 3.5% 4.5% 4.7% 7.0% 10.0%
Industry Average 11.7 $ 2,290 $ 6,249 24.6% 26.5% 0.3% 2.9% (1.4)% (5.9)% 7.2%

Notes: 1 - Includes Companies under the SIC codes 5000 Durable goods wholesale and 5100 Non-durable goods wholesale; the data set has been scrubbed by GT for outliers, anomalies, companies that have ceased operations and that
do not actively trade
Sources: Capital IQ

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Appendix supporting schedules

Industry metrics Wholesale Industry


Top 10 Companies With Highest P/E ratios in the Industry
Fix ed
Total Asset Asset Current Debt / EBITDA / Net Debt / Debt / Debt /
Company Name Turnov er Turnov er DSO DPO DIO Ratio Quick Ratio EBITDA Int. Ex p. EBITDA Equity Capital
($ in millions) Efficiency Cash Cy cle Liquidity Lev erage Capital Structure

Whole Sale Industry1


Infosonics Corp. 2.0 175.9 103.0 14.4 33.4 4.6 3.2 - - NM - -
SemGroup Corporation 0.6 24.4 52.5 45.5 131.8 10.3 8.3 - 4.2 NM - -
Plains GP Holdings, L.P. 1.7 73.2 49.4 36.7 164.1 2.4 0.8 9.9 6.3 8.7 14.4% 9.1%
CTD Holdings Inc. 0.7 4.6 43.0 47.9 339.0 4.6 1.3 3.2 12.4 0.9 14.5% 12.4%
Richardson Electronics Ltd. 2.0 55.2 59.2 13.9 104.2 5.8 2.4 2.2 - 2.2 52.0% 33.6%
Amex drug Corp. 1.6 37.4 53.4 46.5 49.0 2.1 1.2 3.0 8.0 2.8 82.2% 44.5%
Central Steel and Wire Company 2.1 60.7 71.2 53.3 75.5 2.6 1.5 2.2 - 2.0 81.1% 44.8%
Univ ersal Pow er Group Inc. - - - - - 5.5 2.5 0.4 3.3 NM - -
NGL Energy Partners LP 2.9 24.4 48.6 49.9 53.0 2.4 1.3 0.1 4.2 NM 1.9% 1.9%
Arc Logistics Partners LP 2.0 34.7 78.7 67.0 40.4 1.7 1.2 2.3 2.7 2.0 50.7% 33.6%
Top 10 Companies Median 1.8 36.0 53.0 46.0 64.2 3.6 1.4 2.2 3.7 2.1 14.5% 10.8%
Top 10 Companies Average 1.6 49.1 55.9 37.5 99.0 4.2 2.4 2.3 4.1 3.1 29.7% 18.0%

Industry Median 1.9 20.1 39.7 35.6 38.8 1.9 1.1 2.1 7.1 2.7 25.8% 20.4%
Industry Average 2.6 65.0 43.3 46.0 56.7 2.9 1.6 5.0 49.7 6.1 62.6% 28.6%

Notes: 1 - Includes Companies under the SIC codes 5000 Durable goods wholesale and 5100 Non-durable goods wholesale; the data set has been scrubbed by GT for outliers, anomalies, companies that have ceased operations and that
do not actively trade
Sources: Capital IQ

2014 Grant Thornton | NAW Roundtable | June 2014 35


U.S. member firm of Grant Thornton International Ltd.
Appendix supporting schedules

Industry metrics Wholesale Industry


Bottom 10 Companies With Lowest P/E ratios in the Industry
Fix ed
Total Asset Asset Current Debt / EBITDA / Net Debt / Debt / Debt /
Company Name Turnov er Turnov er DSO DPO DIO Ratio Quick Ratio EBITDA Int. Ex p. EBITDA Equity Capital
($ in millions) Efficiency Cash Cy cle Liquidity Lev erage Capital Structure

Whole Sale Industry1


Digital Riv er Inc. 0.4 7.1 66.3 529.2 - 2.1 2.0 4.5 4.0 NM 36.4% 26.7%
Coast Distribution Sy stem Inc. 1.9 95.2 57.4 33.9 131.6 4.2 1.4 19.5 1.7 18.4 66.3% 39.9%
Coffee Holding Company , Inc. 4.1 68.7 28.4 17.2 28.4 5.0 2.8 - NM NM - -
Martin Midstream Partners LP 1.6 2.8 34.7 28.6 19.8 1.6 0.9 4.8 3.0 4.8 251.4% 71.5%
InnerWorkings Inc. 1.6 39.9 77.3 74.4 10.4 1.3 1.0 4.4 5.3 3.3 34.4% 25.6%
Stock Building Supply Holdings, Inc. 3.7 21.3 32.1 33.7 38.8 2.0 1.0 2.9 7.4 2.6 57.9% 36.5%
Agily sy s Inc. 0.5 7.3 124.8 295.6 62.4 2.7 2.6 0.1 23.5 NM 0.2% 0.2%
GreenParts International, Inc. 2.4 6.8 1.4 8.8 77.1 1.2 0.1 4.5 1.5 4.3 145.7% 38.3%
Ironclad Performance Wear Corporation 1.8 109.5 58.6 40.4 134.3 3.6 1.5 - 0.4 NM - -
Central Garden & Pet Company 1.3 8.7 71.0 48.3 127.8 3.6 1.6 6.1 2.0 5.7 112.3% 52.9%
Bottom 10 Companies Median 1.7 15.0 58.0 37.2 50.6 2.4 1.5 4.5 3.0 4.6 47.2% 31.6%
Bottom 10 Companies Average 1.9 34.8 55.5 104.3 61.9 2.7 1.5 4.7 5.2 6.3 68.3% 29.4%

Industry Median 1.9 20.1 39.7 35.6 38.8 1.9 1.1 2.1 7.1 2.7 25.8% 20.4%
Industry Average 2.6 65.0 43.3 46.0 56.7 2.9 1.6 5.0 49.7 6.1 62.6% 28.6%

Notes: 1 - Includes Companies under the SIC codes 5000 Durable goods wholesale and 5100 Non-durable goods wholesale; the data set has been scrubbed by GT for outliers, anomalies, companies that have ceased operations and that
do not actively trade
Sources: Capital IQ

2014 Grant Thornton | NAW Roundtable | June 2014 36


U.S. member firm of Grant Thornton International Ltd.
Appendix supporting schedules

Industry metrics Electrical & electronics equipment & components wholesalers


Return on
Market Total Gross SG&A as EBIT EBITDA Total Return on Return on
Company Name P/E Capital Rev enue Margin % of Sales Margin Margin Assets Capital Equity
($ in millions) Market Data Profitability

Electrical Equipment, Instruments and Com ponents1


Univ ersal Pow er Group Inc. 85.7 9 82 19.7% 18.5% 1.2% 1.7% 1.3% 1.5% 0.6%
ADDv antage Technologies Group Inc. 51.9 33 33 27.7% 22.9% 4.8% 6.1% 2.0% 2.3% 1.5%
Houston Wire & Cable Company 27.1 236 389 21.8% 8.7% 6.3% 7.1% 8.0% 9.1% 7.0%
WESCO International Inc. 18.6 3,694 7,516 20.5% 13.8% 5.8% 6.6% 5.8% 8.3% 14.4%
Anix ter International Inc. 16.4 3,225 6,259 23.0% 17.2% 5.8% 6.2% 7.7% 11.7% 19.7%
Wireless Xcessories Group Inc. 15.9 4 40 18.3% 17.1% 0.9% 1.2% - - -
TESSCO Technologies Inc. 15.9 289 560 24.7% 19.9% 4.7% 5.4% 8.7% 14.9% 14.8%
Arrow Electronics, Inc. 13.8 5,734 21,590 13.2% 8.8% 3.8% 4.4% 4.8% 8.1% 10.6%
Av net, Inc. 12.6 6,308 27,042 11.7% 8.4% 3.2% 3.7% 5.2% 8.4% 11.0%
Surge Components Inc. 6.7 8 26 27.0% 21.5% 5.3% 5.6% 6.8% 9.0% 11.8%
Taitron Components Inc. (5.6) 6 6 22.6% 38.7% (16.1)% (13.1)% (3.1)% (3.2)% (5.7)%
5Barz International Inc. (6.5) 35 - - - - - (64.7)% (111.4)% (289.7)%
Signature Group Holdings, Inc. (14.0) 126 39 (6.1)% - NM NM (8.2)% - (16.4)%
Sub-industry Median 15.9 $ 126 $ 82 20.5% 17.1% 4.3% 4.9% 4.8% 8.1% 7.0%
Sub-industry Average 18.3 $ 1,417 $ 4,547 17.5% 15.2% 2.3% 3.1% (1.5)% (2.4)% (15.2)%

Industry Median 16.2 $ 432 $ 819 19.9% 14.2% 3.5% 4.5% 4.7% 7.0% 10.0%
Industry Average 11.7 $ 2,290 $ 6,249 24.6% 26.5% 0.3% 2.9% (1.4)% (5.9)% 7.2%

Notes: 1 - Includes Companies under the SIC code 5060 Electrical goods - wholesale (Primary); the data set has been scrubbed by GT for outliers, anomalies, companies that have ceased operations and that do not actively trade
Sources: Capital IQ

2014 Grant Thornton | NAW Roundtable | June 2014 37


U.S. member firm of Grant Thornton International Ltd.
Appendix supporting schedules

Industry metrics Electrical & electronics equipment & components wholesalers


Fix ed
Total Asset Asset Current Debt / EBITDA / Net Debt / Debt / Debt /
Company Name Turnov er Turnov er DSO DPO DIO Ratio Quick Ratio EBITDA Int. Ex p. EBITDA Equity Capital
($ in millions) Efficiency Cash Cy cle Liquidity Lev erage Capital Structure

Electrical Equipment, Instruments and Components1


Univ ersal Pow er Group Inc. 1.7 73.2 49.4 36.7 164.1 2.4 0.8 9.9 3.3 8.7 14.4% 9.1%
ADDv antage Technologies Group Inc. 0.7 4.6 43.0 47.9 339.0 4.6 1.3 3.2 46.4 0.9 14.5% 12.4%
Houston Wire & Cable Company 2.0 55.2 59.2 13.9 104.2 5.8 2.4 2.2 28.0 2.2 52.0% 33.6%
WESCO International Inc. 1.6 37.4 53.4 46.5 49.0 2.1 1.2 3.0 5.9 2.8 82.2% 44.5%
Anix ter International Inc. 2.1 60.7 71.2 53.3 75.5 2.6 1.5 2.2 8.6 2.0 81.1% 44.8%
Wireless Xcessories Group Inc. - - - - - 5.5 2.5 0.4 - NM - -
TESSCO Technologies Inc. 2.9 24.4 48.6 49.9 53.0 2.4 1.3 0.1 170.9 NM 1.9% 1.9%
Arrow Electronics, Inc. 2.0 34.7 78.7 67.0 40.4 1.7 1.2 2.3 7.9 2.0 50.7% 33.6%
Av net, Inc. 2.6 53.6 65.7 48.2 36.5 1.8 1.2 2.1 9.2 1.1 25.8% 18.0%
Surge Components Inc. 2.0 366.4 55.3 39.1 56.5 3.7 2.6 - - NM - -
Taitron Components Inc. 0.3 1.3 29.0 53.3 NM 19.6 4.7 NM NM NM 9.0% 8.3%
5Barz International Inc. - - - - - 0.3 0.2 NM - NM 2.7% 2.3%
Signature Group Holdings, Inc. 0.4 - - - - 5.9 4.4 NA NA NA 41.9% 27.3%
Sub-industry Median 1.7 34.7 49.4 46.5 51.0 2.6 1.3 2.2 7.9 2.0 14.5% 12.4%
Sub-industry Average 1.4 53.3 43.1 35.9 74.5 4.4 1.9 2.5 24.0 2.7 27.9% 17.7%

Industry Median 1.9 20.1 39.7 35.6 38.8 1.9 1.1 2.1 7.1 2.7 25.8% 20.4%
Industry Average 2.6 65.0 43.3 46.0 56.7 2.9 1.6 5.0 49.7 6.1 62.6% 28.6%

Notes: 1 - Includes Companies under the SIC code 5060 Electrical goods - wholesale (Primary); the data set has been scrubbed by GT for outliers, anomalies, companies that have ceased operations and that do not actively trade
Sources: Capital IQ

2014 Grant Thornton | NAW Roundtable | June 2014 38


U.S. member firm of Grant Thornton International Ltd.
Appendix supporting schedules

Industry metrics Food & grocery wholesalers


Return on
Market Total Gross SG&A as EBIT EBITDA Total Return on Return on
Company Name P/E Capital Rev enue Margin % of Sales Margin Margin Assets Capital Equity
($ in millions) Market Data Profitability

3
Food & Grocery Products
Forev erGreen Worldw ide Corporation 46.3 $ 31 $ 26 75.0% 71.4% 2.9% 3.7% 13.1% NM NM
United Natural Foods, Inc. 27.9 3,352 6,457 16.8% 13.6% 3.2% 3.9% 7.1% 9.8% 10.9%
The Chefs' Warehouse, Inc. 27.7 525 721 25.4% 20.6% 4.8% 5.9% 7.6% 9.6% 17.5%
Sy sco Corporation 23.2 21,047 45,831 17.4% 13.1% 4.3% 5.3% 9.6% 15.1% 18.5%
Calav o Grow ers Inc. 22.1 488 749 9.2% 4.3% 4.7% 5.5% 9.1% 12.2% 18.3%
Zurv ita Holdings, Inc. 0.2 1 19 19.6% 28.9% (9.5)% (9.3)% (59.9)% NM NM
Consumer Capital Group Inc. - 181 6 1.4% 16.4% (15.0)% (14.6)% (29.0)% (61.3)% NM
Innov ativ e Food Holdings, Inc. (7.1) 13 24 29.0% 22.1% 5.1% 6.2% 15.2% 27.7% (109.4)%
Pizza Inn Holdings, Inc. (26.9) 49 42 7.5% 10.6% (4.2)% (0.9)% (8.3)% (12.5)% (26.0)%
Coffee Holding Company , Inc. (46.4) 32 130 4.9% 5.8% (0.8)% (0.4)% (2.2)% (2.8)% (4.4)%
Central Garden & Pet Company (560.4) 401 1,655 27.9% 24.8% 3.1% 5.4% 2.4% 3.0% (0.1)%
Sub-industry Median 0.2 $ 181 $ 130 17.4% 16.4% 3.1% 3.9% 7.1% 9.6% 5.4%
Sub-industry Average (44.9) $ 2,375 $ 5,060 21.3% 21.1% (0.1)% 1.0% (3.2)% 0.1% (9.3)%

Industry Median 16.2 $ 432 $ 819 19.9% 14.2% 3.5% 4.5% 4.7% 7.0% 10.0%
Industry Average 11.7 $ 2,290 $ 6,249 24.6% 26.5% 0.3% 2.9% (1.4)% (5.9)% 7.2%

Notes: 3 - Includes Companies under the SIC code 5140 Groceries and related products - wholesale (Primary); the data set has been scrubbed by GT for outliers, anomalies, companies that have ceased operations and that do not actively trade
Sources: Capital IQ

2014 Grant Thornton | NAW Roundtable | June 2014 39


U.S. member firm of Grant Thornton International Ltd.
Appendix supporting schedules

Industry metrics Food & grocery wholesalers


Fix ed
Total Asset Asset Current Debt / EBITDA / Net Debt / Debt / Debt /
Company Name Turnov er Turnov er DSO DPO DIO Ratio Quick Ratio EBITDA Int. Ex p. EBITDA Equity Capital
($ in millions) Efficiency Cash Cy cle Liquidity Lev erage Capital Structure

3
Food & Grocery Products
Forev erGreen Worldw ide Corporation 7.2 64.7 9.8 44.7 45.8 0.9 0.6 2.1 2.2 0.6 NM 317.9%
United Natural Foods, Inc. 3.6 18.5 22.0 21.1 49.7 2.8 0.9 1.1 35.0 1.0 23.6% 19.1%
The Chefs' Warehouse, Inc. 2.5 31.4 32.2 20.4 35.1 2.9 1.7 3.5 5.0 2.8 105.4% 50.0%
Sy sco Corporation 3.6 11.6 27.4 24.9 23.8 1.7 1.0 1.3 19.7 1.1 57.1% 35.7%
Calav o Grow ers Inc. 3.1 14.0 30.1 17.2 15.5 1.3 0.8 1.3 38.4 0.8 4.0% 2.9%
Zurv ita Holdings, Inc. 10.1 320.8 8.6 - - 0.5 0.3 NM NM NM - -
Consumer Capital Group Inc. 3.1 153.4 29.1 41.9 49.0 0.5 0.1 NM NM NM - -
Innov ativ e Food Holdings, Inc. 4.7 25.6 14.5 27.2 15.9 1.0 0.7 1.4 0.6 0.0 46.5% 17.0%
Pizza Inn Holdings, Inc. 3.1 7.9 30.6 17.6 14.8 1.7 1.0 NM NM NM 9.1% 8.0%
Coffee Holding Company , Inc. 4.1 68.7 28.4 17.2 28.4 5.0 2.8 - NM NM - -
Central Garden & Pet Company 1.3 8.7 71.0 48.3 127.8 3.6 1.6 6.1 2.0 5.7 112.3% 52.9%
Sub-industry Median 3.6 25.6 28.4 21.1 28.4 1.7 0.9 1.3 5.0 1.0 16.3% 17.0%
Sub-industry Average 4.2 65.9 27.6 25.5 36.9 2.0 1.0 2.1 14.7 1.7 35.8% 45.8%

Industry Median 1.9 20.1 39.7 35.6 38.8 1.9 1.1 2.1 7.1 2.7 25.8% 20.4%
Industry Average 2.6 65.0 43.3 46.0 56.7 2.9 1.6 5.0 49.7 6.1 62.6% 28.6%

Notes: 3 - Includes Companies under the SIC code 5140 Groceries and related products - wholesale (Primary); the data set has been scrubbed by GT for outliers, anomalies, companies that have ceased operations and that do not actively trade
Sources: Capital IQ

2014 Grant Thornton | NAW Roundtable | June 2014 40


U.S. member firm of Grant Thornton International Ltd.
Appendix supporting schedules

Industry metrics Containers, packaging, paper & forest products wholesalers


Return on
Market Total Gross SG&A as EBIT EBITDA Total Return on Return on
Company Name P/E Capital Rev enue Margin % of Sales Margin Margin Assets Capital Equity
($ in millions) Market Data Profitability

Containers & Packaging and Paper & Forest Products2


Sealed Air Corporation 43.1 $ 7,040 $ 7,690 34.0% 22.6% 9.8% 13.7% 5.3% 7.7% 11.3%
Insignia Sy stems Inc. 39.7 39 27 44.4% 38.5% 5.9% 9.9% 3.1% 3.7% 4.0%
ZAGG Inc 30.5 142 217 39.6% 24.9% 10.2% 15.8% 8.3% 9.7% 4.0%
3M Company 20.6 89,238 31,068 48.0% 20.7% 21.7% 26.1% 12.5% 17.2% 26.7%
Bemis Company , Inc. 20.1 3,965 5,013 19.3% 10.0% 8.6% 12.3% 6.3% 8.5% 12.8%
Av ery Dennison Corporation 19.9 4,797 6,191 26.5% 17.5% 7.4% 10.1% 5.9% 10.4% 16.2%
Orchids Paper Products Company 18.6 247 118 23.3% 8.0% 15.3% 22.1% 9.0% 11.6% 15.7%
CSS Industries Inc. 11.9 251 320 32.2% 23.5% 8.7% 11.1% 6.0% 6.9% 7.3%
Proguard Acquisition Corp (1.0) 0 11 13.2% 14.1% (4.0)% (0.9)% (22.6)% (311.7)% NM
Sub-industry Median 20.1 $ 251 $ 320 32.2% 20.7% 8.7% 12.3% 6.0% 8.5% 12.1%
Sub-industry Average 22.6 $ 11,747 $ 5,628 31.2% 20.0% 9.3% 13.4% 3.8% (26.2)% 12.3%

Industry Median 16.2 $ 432 $ 819 19.9% 14.2% 3.5% 4.5% 4.7% 7.0% 10.0%
Industry Average 11.7 $ 2,290 $ 6,249 24.6% 26.5% 0.3% 2.9% (1.4)% (5.9)% 7.2%

Notes: 2 - Includes Companies under the SIC codes 2670 Converted paper and paperboard products, except containers and boxes (Primary) and 5110 Paper and paper products - wholesale (Primary); the data set has been scrubbed by GT for
outliers and anomalies
Sources: Capital IQ

2014 Grant Thornton | NAW Roundtable | June 2014 41


U.S. member firm of Grant Thornton International Ltd.
Appendix supporting schedules

Industry metrics Containers, packaging, paper & forest products wholesalers


Fix ed
Total Asset Asset Current Debt / EBITDA / Net Debt / Debt / Debt /
Company Name Turnov er Turnov er DSO DPO DIO Ratio Quick Ratio EBITDA Int. Ex p. EBITDA Equity Capital
($ in millions) Efficiency Cash Cy cle Liquidity Lev erage Capital Structure

Containers & Packaging and Paper & Forest Products2


Sealed Air Corporation 0.9 6.7 53.1 41.5 56.8 1.3 0.7 4.6 3.0 4.2 277.7% 65.4%
Insignia Sy stems Inc. 0.8 14.6 79.0 64.9 9.0 6.2 6.0 - - NM - -
ZAGG Inc 1.3 45.7 60.6 41.5 111.9 3.8 1.8 - 87.2 NM - -
3M Company 0.9 3.7 53.0 41.2 87.9 1.7 1.0 0.8 56.8 0.5 24.6% 18.0%
Bemis Company , Inc. 1.2 3.9 49.7 36.5 61.6 2.5 1.3 2.4 9.0 2.1 86.8% 46.2%
Av ery Dennison Corporation 1.3 6.7 61.0 67.6 42.6 1.3 0.8 1.8 10.1 1.4 63.6% 36.4%
Orchids Paper Products Company 0.9 1.3 18.7 13.8 48.0 3.3 1.9 0.6 89.1 0.1 16.1% 13.7%
CSS Industries Inc. 1.1 11.6 49.8 20.4 102.3 6.9 4.5 - 125.4 NM - -
Proguard Acquisition Corp 9.1 354.6 13.5 27.8 0.7 0.4 0.3 NM NM NM NM NM
Sub-industry Median 1.1 6.7 53.0 41.2 56.8 2.5 1.3 0.7 33.4 1.4 20.3% 15.8%
Sub-industry Average 1.9 49.9 48.7 39.5 57.9 3.0 2.0 1.3 47.6 1.7 58.6% 22.4%

Industry Median 1.9 20.1 39.7 35.6 38.8 1.9 1.1 2.1 7.1 2.7 25.8% 20.4%
Industry Average 2.6 65.0 43.3 46.0 56.7 2.9 1.6 5.0 49.7 6.1 62.6% 28.6%

Notes: 2 - Includes Companies under the SIC codes 2670 Converted paper and paperboard products, except containers and boxes (Primary) and 5110 Paper and paper products - wholesale (Primary); the data set has been scrubbed by GT for
outliers and anomalies
Sources: Capital IQ

2014 Grant Thornton | NAW Roundtable | June 2014 42


U.S. member firm of Grant Thornton International Ltd.