Industry Financial Report

Transcription

1 Developed By: Main Street Accounting Developed For: Foundation Plumbing Financial Report NAICS Plumbing, Heating, and Air-Conditioning Contractors $1m - $2.49m Harrisburg Metro Area Release Date: June 2018

2 TABLE OF CONTENTS 1 - INTRODUCTION 2 - SUMMARY SCORES 3 - PROFIT LOSS 4 - BALANCE SHEET 5 - FINANCIAL RATIOS CASH FLOW-SOLVENCY PROFITABILITY EFFICIENCY DEBT-RISK 6 - SOURCES & USES OF FUNDS 7 - ABOUT THE DATA 7.1- DATA SOURCES 7.2- SCORING

3 INTRODUCTION GET THE MOST OUT OF YOUR INDUSTRY FINANCIAL REPORT The Bizminer Financial Report presents detailed information to help you understand any firm s position relative to the financial performance of similar firms in the industry. If you input your firm financials, comparison of dollar, percentage and financial ratio performance become an even more powerful benchmark of firm performance against industry standards. The results can help you understand your industry and become an important part of your toolkit that helps to guide management decisions. If you aren t already, consider working with a qualified advisor to obtain personalized guidance. To assist you, the report includes definitions of most line items and ratios; and (if you take advantage of the inputs tool) a simple scoring interface that compares your firm and the industry peer group you selected. YOUR INDUSTRY PEER GROUP When you accessed your Financial Report, you selected a comparison peer group that most closely represents the character of your firm. Firms Analyzed Your peers are determined through a series of criteria and can include your selections of: Segment (of 5000 classifications) Market Area (US- State-Metro) Sales Class (of 15 available) Time Series (1-5 year display options) YOUR INDUSTRY IN CONTEXT: THE NAICS CLASSIFICATION SYSTEM The industry your selected fits within the official NAICS (North American Classification System) and Bizminer s proprietary taxonomy, which breaks out more detailed industries classifications than NAICS by adding up to eight decimal digits after the NAICS-6 code. The industry you selected fits into this industry hierarchy: NAICS 23: Construction NAICS 238: Specialty Trade Contractors NAICS 2382: Building Equipment Contractors NAICS : Plumbing, Heating, and Air-Conditioning Contractors RATIO CATEGORIES The Bizminer Financial Report is based on selected financial ratios that are typically considered to be Key Performance Indicators (KPIs) which includes: Cash Flow/Solvency: Cash Flow ratios indicate a company s ability to meet various levels of demand on cash and easily obtainable cash resources against current and anticipated near-term payments due. Profitability: Profitability ratios compare levels of return against various expense and balance sheet components to measure your performance against reasonable industry peer group standards, indicating bottom line performance. Efficiency: Efficiency ratios measure your success in marshalling resources at hand to effectively manage various components of your business operations. These indicators often point most specifically toward actions that could enhance your bottom line. Debt-Risk: Debt-Risk ratios assess the appropriateness of a firm s level of debt against the ability to pay, as well as the risk of insolvency. If you submit corresponding inputs, ratios will be scored against industry values for the most recent three calendar years. CUSTOMIZE YOUR REPORT Customize any Bizminer Financial Report with these options: Co-brand with your name and logo (and/or your client s); input and benchmark firm financials; specify tables, ratios and years you want to display. Display options are On by default.

4 SUMMARY SCORES SUMMARY PERFORMANCE SCORES Based on your inputs, the Financial Report calculates the percentage difference (variance) between client ratios and the industry average for the selected industry peer group. Your firm performance on each ratio is scored on a 1-5 scale (5 being best) for each year displayed in the report. The scoring approach depends on the specific scored ratio. You can find a detailed explanation for each at the end of this report. The value of peer comparisons with your business depends on the accuracy and completeness of the firm financial information that is being entered. The more detail that you provide, the more comprehensive and meaningful the benchmark. For each ratio, the score for those years selected from the most recent three calendar years is averaged and integrated into a Ratio Category Score. The Score for each of the four categories (Cash Flow/Solvency; Profitability; Efficiency; Debt-Risk) are then averaged to produce an Overall Score. Summary Scores ( ) (Scale 1-5) OVERALL TOTAL SCORE: 3.37 RATIO CATEGORY SCORES CASH FLOW/ SOLVENCY: 3.47 PROFITABILITY: 4.00 EFFICIENCY: 3.71 DEBT-RISK: 2.29 RATIO CATEGORIES The Bizminer Financial Report is based on selected financial ratios that are typically considered to be Key Performance Indicators (KPIs) which includes: Cash Flow/Solvency: Cash Flow ratios indicate a company s ability to meet various levels of demand on cash and easily obtainable cash resources against current and anticipated near-term payments due. Profitability: Profitability ratios compare levels of return against various expense and balance sheet components to measure your performance against reasonable industry peer group standards, indicating bottom line performance, Efficiency: Efficiency ratios measure your success in marshalling resources at hand to effectively manage various components of your business operations. These indicators often point most specifically toward actions that could enhance your bottom line. Debt-Risk: Debt-Risk ratios assess the appropriateness of a firm s level of debt against the ability to pay, as well as the risk of insolvency. WORTH YOUR FOCUS: Ratio Category scores are simply a reflection of the more focused individual ratios that they include. Any ratios that score below 3.0 should be examined closely for weaknesses in management or performance that could be improved with reasonable effort and expense. While you should work with a qualified advisor to obtain specific guidance, we ve flagged these areas for attention: Current Liabilities: Net Worth 1.00 Long-Term Liabilities: Net Worth 1.00 Total Liabilities: Net Worth 1.00

5 PROFIT LOSS ($): INCOME & EXPENSE - INDUSTRY Business Revenue 1,700,061 1,475,287 1,696,498 1,688,109 1,697,795 Cost of Sales 947, , , , ,607 Cost of Sales - Labor Portion 603, , , , ,161 Gross Margin 752, , , , ,188 Officers Comp. 121,044 99, , , ,430 Salary-Wages 182, , , , ,837 Rent 37,741 29,211 33,930 34,086 34,295 Taxes Paid 50,152 43,226 54,967 55,201 56,706 Advertising 25,841 20,359 15,438 15,539 15,620 Benefits-Pensions 42,162 29,358 44,957 45,060 45,331 Repairs 12,750 5,311 9,331 9,357 9,338 Bad Debt 5,270 1,770 1,188 1,170 1,188 Sales, General, Admin & Misc. 141, , , , ,404 EBITDA 133, , , , ,039 Amortization Depreciation Depletion 27,201 16,376 20,528 20,552 20,543 Operating Expenses 645, , , , ,692 Operating Income 106, , ,619 97,176 81,496 Interest Income Interest Expense 6,800 5,459 6,277 6,349 6,452 Other Income 8,670 3,393 4,241 4,389 4,244 Pre-Tax Net Profit 108, ,677 99,922 95,550 79,628 Income Tax 25,750 26,804 22,223 22,729 15,324 After Tax Net Profit 83,224 84,873 77,699 72,821 64,304 Discretionary Owner Earnings 231, , , , ,277

6 PROFIT LOSS ($): INCOME & EXPENSE - YOUR FIRM Business Revenue 1,612,441 1,599,085 1,718,455 1,736,918 1,749,451 Cost of Sales 928,251 1,007,518 1,013,071 1,016,144 1,007,072 Cost of Sales - Labor Portion 569, , , , ,916 Gross Margin 684, , , , ,379 Officers Comp. 98,334 80, , , ,091 Salary-Wages 158, , , , ,814 Rent 34,635 27,157 33,167 34,324 35,928 Taxes Paid 48,163 42,448 54,620 56,438 59,117 Advertising 22,990 18,289 13,824 14,367 15,130 Benefits-Pensions 39,258 27,463 44,597 46,010 48,075 Repairs 10,147 2,998 7,493 7,714 8,137 Bad Debt 7,471 4,169 3,565 3,593 3,622 Sales, General, Admin & Misc. 138, , , , ,385 EBITDA 126, , , , ,080 Amortization Depreciation Depletion 24,189 14,160 19,099 19,760 20,652 Operating Expenses 582, , , , ,951 Operating Income 101, , , , ,428 Interest Income Interest Expense 6,902 5,728 6,729 7,055 7,401 Other Income 8,956 3,740 4,619 4,898 4,824 Pre-Tax Net Profit 104, , , , ,442 Income Tax 22,609 25,575 25,306 24,563 21,575 After Tax Net Profit 81,821 86,461 85,864 84,878 79,867 Discretionary Owner Earnings 204, , , , ,610

7 PROFIT LOSS ($): VARIANCE FROM INDUSTRY Business Revenue -5.15% 8.39% 1.29% 2.89% 3.04% Cost of Sales -2.03% 20.17% 4.11% 4.79% 1.97% Cost of Sales - Labor Portion -5.66% -4.55% -6.33% -3.18% -0.56% Gross Margin -9.09% -7.11% -2.49% 0.32% 4.53% Officers Comp % % % -9.86% -5.95% Salary-Wages % % -8.48% -5.62% -1.85% Rent -8.23% -7.03% -2.25% 0.70% 4.76% Taxes Paid -3.97% -1.80% -0.63% 2.24% 4.25% Advertising % % % -7.54% -3.14% Benefits-Pensions -6.89% -6.45% -0.80% 2.11% 6.05% Repairs % % % % % Bad Debt 41.76% % % % % Sales, General, Admin & Misc % 0.87% 2.61% 5.40% 8.19% EBITDA -5.95% -1.67% 7.91% 11.08% 21.60% Amortization Depreciation Depletion % % -6.96% -3.85% 0.53% Operating Expenses -9.83% -8.67% -4.68% -1.85% 1.63% Operating Income -4.64% 0.04% 10.91% 14.24% 26.91% Interest Income 66.18% 79.32% 69.62% 74.55% 73.82% Interest Expense 1.50% 4.93% 7.20% 11.12% 14.71% Other Income 3.30% 10.23% 8.91% 11.60% 13.67% Pre-Tax Net Profit -4.17% 0.32% 11.26% 14.54% 27.39% Income Tax % -4.59% 13.87% 8.07% 40.79% After Tax Net Profit -1.69% 1.87% 10.51% 16.56% 24.20% Discretionary Owner Earnings % -9.87% -3.99% -0.37% 4.00%

8 PROFIT LOSS ($): EXPENSES Expenses: Sales 2017 Firm Expenses: Sales 2017 Cost of Sales Operating Expenses Other Income-Interest Pre-Tax Net Profit Cost of Sales Operating Expenses Other Income-Interest Pre-Tax Net Profit $79,628 $101,442 $628,692 $987,607 $638,951 $1,007,072

9 PROFIT LOSS ($): OWNER EARNINGS Earnings: Sales 2017 Firm Earnings: Sales 2017 Officer Compensation Non-Cash Expenses After-Tax Net Profit All Cash Expenses Officer Compensation Non-Cash Expenses After-Tax Net Profit All Other Expenses $158,404 $123,430 $171,385 $116,091 $64,304 $20,543 $79,867 $20,652

10 PROFIT LOSS (%): INCOME & EXPENSE - INDUSTRY Business Revenue 100% 100% 100% 100% 100% Cost of Sales 55.73% 56.83% 57.36% 57.44% 58.17% Cost of Sales - Labor Portion 35.51% 34.99% 33.66% 35.00% 34.41% Gross Margin 44.27% 43.17% 42.64% 42.56% 41.83% Officers Comp. 7.12% 6.77% 7.18% 7.24% 7.27% Salary-Wages 10.74% 10.11% 9.53% 9.62% 9.65% Rent 2.22% 1.98% 2.00% 2.02% 2.02% Taxes Paid 2.95% 2.93% 3.24% 3.27% 3.34% Advertising 1.52% 1.38% 0.91% 0.92% 0.92% Benefits-Pensions 2.48% 1.99% 2.65% 2.67% 2.67% Repairs 0.75% 0.36% 0.55% 0.55% 0.55% Bad Debt 0.31% 0.12% 0.07% 0.07% 0.07% Sales, General, Admin & Misc. 8.30% 8.73% 9.31% 9.22% 9.33% EBITDA 7.88% 8.80% 7.20% 6.98% 6.01% Amortization Depreciation Depletion 1.60% 1.11% 1.21% 1.22% 1.21% Operating Expenses 37.99% 35.48% 36.65% 36.80% 37.03% Operating Income 6.28% 7.69% 5.99% 5.76% 4.80% Interest Income 0.02% 0.02% 0.02% 0.02% 0.02% Interest Expense 0.40% 0.37% 0.37% 0.38% 0.38% Other Income 0.51% 0.23% 0.25% 0.26% 0.25% Pre-Tax Net Profit 6.41% 7.57% 5.89% 5.66% 4.69% Income Tax 1.51% 1.82% 1.31% 1.35% 0.90% After Tax Net Profit 4.90% 5.75% 4.58% 4.31% 3.79% Discretionary Owner Earnings 13.62% 13.63% 12.97% 12.78% 12.27%

11 PROFIT LOSS (%): INCOME & EXPENSE - YOUR FIRM Business Revenue 100% 100% 100% 100% 100% Cost of Sales 57.57% 63.01% 58.95% 58.50% 57.57% Cost of Sales - Labor Portion 35.32% 30.81% 31.13% 32.93% 33.21% Gross Margin 42.43% 36.99% 41.05% 41.50% 42.43% Officers Comp. 6.10% 5.04% 6.19% 6.35% 6.64% Salary-Wages 9.86% 8.18% 8.61% 8.82% 9.19% Rent 2.15% 1.70% 1.93% 1.98% 2.05% Taxes Paid 2.99% 2.65% 3.18% 3.25% 3.38% Advertising 1.43% 1.14% 0.80% 0.83% 0.86% Benefits-Pensions 2.43% 1.72% 2.60% 2.65% 2.75% Repairs 0.63% 0.19% 0.44% 0.44% 0.47% Bad Debt 0.46% 0.26% 0.21% 0.21% 0.21% Sales, General, Admin & Misc. 8.57% 8.12% 9.43% 9.45% 9.80% EBITDA 7.81% 7.98% 7.67% 7.53% 7.09% Amortization Depreciation Depletion 1.50% 0.89% 1.11% 1.14% 1.18% Operating Expenses 36.12% 29.90% 34.49% 35.11% 36.52% Operating Income 6.31% 7.10% 6.56% 6.39% 5.91% Interest Income 0.04% 0.03% 0.03% 0.03% 0.03% Interest Expense 0.43% 0.36% 0.39% 0.41% 0.42% Other Income 0.56% 0.23% 0.27% 0.28% 0.28% Pre-Tax Net Profit 6.48% 7.01% 6.47% 6.30% 5.80% Income Tax 1.40% 1.60% 1.47% 1.41% 1.23% After Tax Net Profit 5.07% 5.41% 5.00% 4.89% 4.57% Discretionary Owner Earnings 12.67% 11.34% 12.29% 12.37% 12.38%

12 PROFIT LOSS (%): VARIANCE FROM INDUSTRY Business Revenue 0.00% 0.00% 0.00% 0.00% 0.00% Cost of Sales 3.30% 10.87% 2.77% 1.85% -1.03% Cost of Sales - Labor Portion -0.54% % -7.52% -5.91% -3.49% Gross Margin -4.16% % -3.73% -2.49% 1.43% Officers Comp % % % % -8.67% Salary-Wages -8.19% % -9.65% -8.32% -4.77% Rent -3.15% % -3.50% -1.98% 1.49% Taxes Paid 1.36% -9.56% -1.85% -0.61% 1.20% Advertising -5.92% % % -9.78% -6.52% Benefits-Pensions -2.02% % -1.89% -0.75% 3.00% Repairs % % % % % Bad Debt 48.39% % % % % Sales, General, Admin & Misc. 3.25% -6.99% 1.29% 2.49% 5.04% EBITDA -0.89% -9.32% 6.53% 7.88% 17.97% Amortization Depreciation Depletion -6.25% % -8.26% -6.56% -2.48% Operating Expenses -4.92% % -5.89% -4.59% -1.38% Operating Income 0.48% -7.67% 9.52% 10.94% 23.13% Interest Income % 50.00% 50.00% 50.00% 50.00% Interest Expense 7.50% -2.70% 5.41% 7.89% 10.53% Other Income 9.80% 0.00% 8.00% 7.69% 12.00% Pre-Tax Net Profit 1.09% -7.40% 9.85% 11.31% 23.67% Income Tax -7.28% % 12.21% 4.44% 36.67% After Tax Net Profit 3.47% -5.91% 9.17% 13.46% 20.58% Discretionary Owner Earnings -6.98% % -5.24% -3.21% 0.90%

13 PROFIT LOSS (%): EXPENSES Expenses: Sales 2017 Firm Expenses: Sales 2017 Cost of Sales Operating Expenses Other Income-Interest Pre-Tax Net Profit Cost of Sales Operating Expenses Other Income-Interest Pre-Tax Net Profit 4.69% 5.8% 37.03% 58.17% 36.52% 57.57%

14 PROFIT LOSS (%): OWNER EARNINGS Earnings: Sales 2017 Firm Earnings: Sales 2017 Officer Compensation Non-Cash Expenses After-Tax Net Profit All Cash Expenses Officer Compensation Non-Cash Expenses After-Tax Net Profit All Other Expenses 9.33% 7.27% 9.8% 6.64% 3.79% 1.21% 4.57% 1.18%

15 BALANCE SHEET ($): INDUSTRY Cash 90,771 93, , , ,877 Receivables 105, , , , ,905 Inventory 21,812 22,222 27,266 28,349 29,210 Other Current Assets 9,385 9,030 13,674 14,218 14,901 Total Current Assets 227, , , , ,893 Gross Fixed Assets 495, , , , ,336 Accum. Depreciation-Amortization-Depltn. 406, , , , ,547 Net Fixed Assets 88,438 89,368 96,643 98, ,788 Other Non-Current Assets 54,821 52,359 58,555 59,980 64,010 Total Assets 370, , , , ,691 Accounts Payable 56,050 56,557 61,597 63,098 65,164 Loans/Notes Payable 19,178 19,583 23,650 24,097 24,288 Other Current Liabilities 44,180 41,507 49,086 49,869 52,496 Total Current Liabilities 119, , , , ,948 Total Long Term Liabilities 74,672 76,289 79,386 82,084 85,670 Total Liabilities 194, , , , ,618 Net Worth 176, , , , ,073 Total Liabilities & Net Worth 370, , , , ,691

16 BALANCE SHEET ($): YOUR FIRM Cash 85,349 89,801 94,771 87, ,535 Receivables 96,277 99, , , ,244 Inventory 23,224 24,285 29,507 27,448 32,955 Other Current Assets 11,646 10,787 15,316 14,291 17,032 Total Current Assets 216, , , , ,766 Gross Fixed Assets 502, , , , ,382 Accum. Depreciation-Amortization-Depltn. 408, , , , ,833 Net Fixed Assets 82,904 85,877 88,338 79, ,298 Other Non-Current Assets 44,198 43,856 50,424 45,145 58,972 Total Assets 343, , , , ,036 Accounts Payable 55,898 58,045 63,165 57,646 69,943 Loans/Notes Payable 18,682 19,672 23,840 21,604 25,646 Other Current Liabilities 43,900 42,429 50,213 45,435 56,239 Total Current Liabilities 118, , , , ,828 Total Long Term Liabilities 76,001 79,830 82,892 76,479 93,491 Total Liabilities 194, , , , ,319 Net Worth 149, , , , ,717 Total Liabilities & Net Worth 343, , , , ,036

17 BALANCE SHEET ($): VARIANCE FROM INDUSTRY Cash -5.97% -3.45% -7.91% % -5.57% Receivables -8.93% -6.01% -5.14% % 0.27% Inventory 6.47% 9.28% 8.22% -3.18% 12.82% Other Current Assets 24.09% 19.46% 12.01% 0.51% 14.30% Total Current Assets -4.92% -2.50% -3.94% % -0.04% Gross Fixed Assets 1.35% 3.89% -0.16% % 1.52% Accum. Depreciation-Amortization-Depltn. 0.49% 3.09% -0.72% % 1.02% Net Fixed Assets -6.26% -3.91% -8.59% % -5.97% Other Non-Current Assets % % % % -7.87% Total Assets -7.37% -4.77% -6.42% % -2.56% Accounts Payable -0.27% 2.63% 2.55% -8.64% 7.33% Loans/Notes Payable -2.59% 0.45% 0.80% % 5.59% Other Current Liabilities -0.63% 2.22% 2.30% -8.89% 7.13% Total Current Liabilities -0.78% 2.12% 2.15% -9.03% 6.96% Total Long Term Liabilities 1.78% 4.64% 4.42% -6.83% 9.13% Total Liabilities 0.21% 3.11% 2.99% -8.21% 7.78% Net Worth % % % % % Total Liabilities & Net Worth -7.37% -4.77% -6.42% % -2.56%

18 BALANCE SHEET ($): ASSETS Assets 2017 Firm Assets 2017 Cash-Receivables Inventory Other Current Net Fixed Other Non-Current Cash-Receivables Inventory Other Current Net Fixed Other Non-Current $64,010 $58,972 $108,788 $238,782 $102,298 $232,779 $14,901 $29,210 $17,032 $32,955

19 BALANCE SHEET ($): LIABILITIES Liabilities 2017 Firm Liabilities 2017 Payables Other Current Long Term Net Worth Payables Other Current Long Term Net Worth $89,452 $95,589 $228,073 $14,901 $198,717 $17,032 $85,670 $93,491

20 BALANCE SHEET (%): INDUSTRY Cash 24.47% 25.03% 24.76% 24.89% 24.99% Receivables 28.50% 28.42% 28.05% 28.20% 27.41% Inventory 5.88% 5.98% 6.56% 6.60% 6.41% Other Current Assets 2.53% 2.43% 3.29% 3.31% 3.27% Total Current Assets 61.38% 61.86% 62.66% 63.00% 62.08% Gross Fixed Assets % % % % % Accum. Depreciation-Amortization-Depltn % % 90.04% 89.20% 92.29% Net Fixed Assets 23.84% 24.05% 23.25% 23.04% 23.87% Other Non-Current Assets 14.78% 14.09% 14.09% 13.96% 14.05% Total Assets % % % % % Accounts Payable 15.11% 15.22% 14.82% 14.69% 14.30% Loans/Notes Payable 5.17% 5.27% 5.69% 5.61% 5.33% Other Current Liabilities 11.91% 11.17% 11.81% 11.61% 11.52% Total Current Liabilities 32.19% 31.66% 32.32% 31.91% 31.15% Total Long Term Liabilities 20.13% 20.53% 19.10% 19.11% 18.80% Total Liabilities 52.32% 52.19% 51.42% 51.02% 49.95% Net Worth 47.68% 47.81% 48.58% 48.98% 50.05% Total Liabilities & Net Worth % % % % %

21 BALANCE SHEET (%): YOUR FIRM Cash 24.84% 25.38% 24.37% 24.49% 24.22% Receivables 28.02% 28.05% 28.43% 28.61% 28.21% Inventory 6.76% 6.86% 7.59% 7.72% 7.42% Other Current Assets 3.39% 3.05% 3.94% 4.02% 3.84% Total Current Assets 63.01% 63.34% 64.32% 64.85% 63.68% Gross Fixed Assets % % % % % Accum. Depreciation-Amortization-Depltn % % 95.52% 95.21% 95.68% Net Fixed Assets 24.13% 24.27% 22.71% 22.45% 23.04% Other Non-Current Assets 12.86% 12.39% 12.96% 12.70% 13.28% Total Assets % % % % % Accounts Payable 16.27% 16.40% 16.24% 16.22% 15.75% Loans/Notes Payable 5.44% 5.56% 6.13% 6.08% 5.78% Other Current Liabilities 12.78% 11.99% 12.91% 12.78% 12.67% Total Current Liabilities 34.48% 33.95% 35.28% 35.08% 34.19% Total Long Term Liabilities 22.12% 22.56% 21.31% 21.52% 21.05% Total Liabilities 56.60% 56.51% 56.59% 56.60% 55.25% Net Worth 43.40% 43.49% 43.41% 43.40% 44.75% Total Liabilities & Net Worth % % % % %

22 BALANCE SHEET (%): VARIANCE FROM INDUSTRY Cash 1.51% 1.40% -1.58% -1.61% -3.08% Receivables -1.68% -1.30% 1.35% 1.45% 2.92% Inventory 14.97% 14.72% 15.70% 16.97% 15.76% Other Current Assets 33.99% 25.51% 19.76% 21.45% 17.43% Total Current Assets 2.66% 2.39% 2.65% 2.94% 2.58% Gross Fixed Assets 9.42% 9.09% 6.68% 7.39% 4.18% Accum. Depreciation-Amortization-Depltn. 8.49% 8.25% 6.09% 6.74% 3.67% Net Fixed Assets 1.22% 0.91% -2.32% -2.56% -3.48% Other Non-Current Assets % % -8.02% -9.03% -5.48% Total Assets 0.00% 0.00% 0.00% 0.00% 0.00% Accounts Payable 7.68% 7.75% 9.58% 10.42% 10.14% Loans/Notes Payable 5.22% 5.50% 7.73% 8.38% 8.44% Other Current Liabilities 7.30% 7.34% 9.31% 10.08% 9.98% Total Current Liabilities 7.11% 7.23% 9.16% 9.93% 9.76% Total Long Term Liabilities 9.89% 9.89% 11.57% 12.61% 11.97% Total Liabilities 8.18% 8.28% 10.05% 10.94% 10.61% Net Worth -8.98% -9.04% % % % Total Liabilities & Net Worth 0.00% 0.00% 0.00% 0.00% 0.00%

23 BALANCE SHEET (%): ASSETS Assets 2017 Firm Assets 2017 Cash-Receivables Inventory Other Current Net Fixed Other Non-Current Cash-Receivables Inventory Other Current Net Fixed Other Non-Current 14.05% 13.28% 23.87% 52.4% 23.04% 52.43% 3.27% 6.41% 3.84% 7.42%

24 BALANCE SHEET (%): LIABILITIES Liabilities 2017 Firm Liabilities 2017 Payables Other Current Long Term Net Worth Payables Other Current Long Term Net Worth 19.63% 21.53% 50.05% 3.27% 44.75% 3.84% 18.8% 21.05%

25 FINANCIAL RATIOS: CASH FLOW-SOLVENCY Financial Ratios: Cash Flow- Solvency Accounts Payable: Business Revenue Current Ratio Quick Ratio Days Payable Current Liabilities: Inventory Net Working Capital: Business Revenue Cost of Sales: Accounts Payable Cost of Sales: Inventory Financial Ratios: Cash Flow- Solvency Accounts Payable: Business Revenue Current Ratio Quick Ratio Days Payable Current Liabilities: Inventory Net Working Capital: Business Revenue Cost of Sales: Accounts Payable Cost of Sales: Inventory

26 FINANCIAL RATIOS: CASH FLOW-SOLVENCY Variance from Accounts Payable: Business Revenue 5.15% -5.22% 1.38% % 4.17% Current Ratio -4.19% -4.10% -6.19% -6.09% -6.53% Quick Ratio -7.27% -7.10% -7.98% -9.04% -8.93% Days Payable 1.81% % -1.47% % 5.27% Current Liabilities: Inventory -6.76% -6.43% -5.68% -6.00% -5.14% Net Working Capital: Business Revenue 0.00% % 0.00% % % Cost of Sales: Accounts Payable -1.72% 17.14% 1.52% -0.45% -5.01% Cost of Sales: Inventory -7.99% 9.97% -3.81% -6.09% -9.61%

27 FINANCIAL RATIOS: CASH FLOW-SOLVENCY Accounts Payable: Business Revenue Current Ratio Notes: Accounts Payable/Business Revenue: Measures the speed with which a company pays vendors. Ratios significantly higher than the industry average may indicate that suppliers are used to float operations. Very low ratios may indicate cash management issues. Your score suggests that the business is generally on target with industry peers. Notes: Current Assets/Current Liabilities: Measures current assets available to cover current liabilities, a test of near-term solvency. The Current Ratio indicates the extent to which cash on hand and disposable assets can pay off near term liabilities. Higher is better unless it constrains necessary investment. Your score suggests that the business is generally on target with industry peers.

28 FINANCIAL RATIOS: CASH FLOW-SOLVENCY Quick Ratio Days Payable Notes: Cash plus Accounts Receivable/Current Liabilities. A more stringent version of the Current Ratio, indicating liquid assets available to cover current debt. This is a harsher version of the Current Ratio. Higher is better unless it constrains necessary investment. Your score suggests that the business is generally on target with industry peers. Notes: 365/(Cost of Sales/Accounts Payable ratio). Reflects the average number of days for each payable before payment is made. High ratios may indicate cash flow difficulties. Your score suggests that the business is generally on target with industry peers.

29 FINANCIAL RATIOS: CASH FLOW-SOLVENCY Current Liabilities: Inventory Net Working Capital: Business Revenue Notes: Current Liabilities/Inventory. A high ratio relative to the industry average may indicate over-reliance on unsold goods to finance operations. Your score suggests that the business is generally on target with industry peers. Notes: Net Working Capital (Current Assets-Current Liabilities)/Business Revenue. Indicates if a company is maintaining a reasonable level of liquidity relative to its Business Revenue volume. Higher is generally better, but very high ratios may indicate an overly conservative reliance on liquid assets, while low ratios suggest the opposite. Your score suggests that the business should undertake a significant review of liquidity practices.

30 FINANCIAL RATIOS: PROFITABILITY Financial Ratios: Profitability EBITDA: Business Revenue (%) Pre-Tax Return On Assets (%) Pre-Tax Return on Net Worth (%) Pre-Tax Return on Business Revenue (%) Discretionary Owner Earnings After-Tax Return On Assets (%) After-Tax Return On Net Worth (%) After-Tax Return On Business Revenue (%) Financial Ratios: Profitability EBITDA: Business Revenue (%) Pre-Tax Return On Assets (%) Pre-Tax Return on Net Worth (%) Pre-Tax Return on Business Revenue (%) Discretionary Owner Earnings After-Tax Return On Assets (%) After-Tax Return On Net Worth (%) After-Tax Return On Business Revenue (%)

31 FINANCIAL RATIOS: PROFITABILITY Variance from EBITDA: Business Revenue (%) -0.89% -9.32% 6.53% 7.88% 17.97% Pre-Tax Return On Assets (%) 3.44% 5.36% 18.89% 38.38% 30.80% Pre-Tax Return on Net Worth (%) 13.67% 15.81% 33.06% 56.21% 46.23% Pre-Tax Return on Business Revenue (%) 1.09% -7.40% 9.85% 11.31% 23.67% Discretionary Owner Earnings -6.98% % -5.24% -3.21% 0.90% After-Tax Return On Assets (%) 6.11% 6.96% 18.14% 22.21% 27.50% After-Tax Return On Net Worth (%) 16.62% 17.61% 32.17% 37.95% 42.57% After-Tax Return On Business Revenue (%) 3.47% -5.91% 9.17% 13.46% 20.58%

32 FINANCIAL RATIOS: PROFITABILITY EBITDA: Business Revenue (%) Pre-Tax Return On Assets (%) Notes: (Earnings Before Interest, Income Taxes Due, Depreciation and Amortization)/Business Revenue. A metric designed to eliminate the effect of finance and accounting decisions when comparing companies and industry benchmarks. Tax credits and deferral procedures, non-cash expenditures (Amortization and Depreciation) and interest expenditures are not deducted from the profit equation. Your score suggests that the business is generally on target with industry peers. Notes: Pre-Tax Net Profit/Total Assets. A critical indicator of profitability. Companies which use their assets efficiently tend to show a ratio higher than the industry norm. This ratio can be used as a predictor of the company's ability to withstand changes in prices or market conditions. The ratio may appear higher for small businesses due to owner compensation draws accounted as net profit. Your score suggests that the business indicates superior ability to withstand adverse market conditions than industry peers.

33 FINANCIAL RATIOS: PROFITABILITY Pre-Tax Return on Net Worth (%) Pre-Tax Return on Business Revenue (%) Notes: Pre-Tax Net Profit/Net Worth. This ratio measures return relative to investment and how well a company leverages the investment in it. May appear higher for small businesses due to owner compensation draws accounted as net profit. Your score suggests that the business indicates superior return on investment than industry peers. Notes: Pre-Tax Net Profit/Business Revenue. Indicates the level of profit from each dollar of Business Revenue. This ratio can be used as a predictor of the company's ability to withstand changes in prices or market conditions. May appear higher for small businesses due to owner compensation draws accounted as net profit. Your score suggests that the business reflects higher profitability than industry peers.

34 FINANCIAL RATIOS: PROFITABILITY Discretionary Owner Earnings Notes: (Officer Compensation+Depreciation+Post-Tax Net Profit)/Business Revenue. This ratio measures the in-pocket return to owner(s) of privately held companies. Most useful for small company measurement and rule-of-thumb valuation. Your score suggests that the business is generally on target with industry peers.

35 FINANCIAL RATIOS: EFFICIENCY Financial Ratios: Efficiency Assets: Business Revenue Days Inventory Days Receivables Current Asset Turnover Fixed Asset Turnover (Business Revenue/Fixed Assets) Gross Margin: Business Revenue Sales Per Employee 191, , , , ,301 Inventory Turnover Receivables Turnover Total Asset Turnover Working Capital Turnover Days Working Capital Cash Turnover

36 FINANCIAL RATIOS: EFFICIENCY Financial Ratios: Efficiency Assets: Business Revenue Days Inventory Days Receivables Current Asset Turnover Fixed Asset Turnover (Business Revenue/Fixed Assets) Gross Margin: Business Revenue Sales Per Employee 161, , , , ,945 Inventory Turnover Receivables Turnover Total Asset Turnover Working Capital Turnover Days Working Capital Cash Turnover

37 FINANCIAL RATIOS: EFFICIENCY Variance from Assets: Business Revenue -4.55% % -4.17% % -7.41% Days Inventory 8.69% -9.00% 3.91% -7.59% 10.56% Days Receivables -4.01% % -6.34% % -2.68% Current Asset Turnover -0.27% 11.06% 5.53% 20.83% 3.17% Fixed Asset Turnover (Business Revenue/Fixed Assets) 1.20% 12.78% 10.83% 27.61% 9.55% Gross Margin: Business Revenue -4.16% % -3.73% -2.49% 1.43% Sales Per Employee % % -9.17% -7.40% -8.55% Inventory Turnover % -0.81% -6.40% 6.26% -8.65% Receivables Turnover 4.17% 15.32% 6.80% 22.53% 2.80% Total Asset Turnover 2.40% 13.85% 8.33% 24.43% 5.63% Working Capital Turnover 4.78% 16.96% 13.09% 29.91% 10.87% Days Working Capital -4.56% % % % -9.83% Cash Turnover 0.85% 12.30% 9.95% 26.35% 9.12%

38 FINANCIAL RATIOS: EFFICIENCY Assets: Business Revenue Days Inventory Notes: Total Assets/Business Revenue. Indicates whether a company is handling a reasonable volume of Business Revenue in relation to investment. High ratios relative to industry norms might indicate overly conservative sales efforts or lagging sales management. Low ratios may indicate lagging investment in business resources. Your score suggests that the business generates a red flag around weak business resource investment practices. Notes: 365/(Cost of Sales/Inventory) Reflects the number of times inventory is turned over during the course of the year. High levels can mean shortages in the ability to deliver on a timely basis. Low levels may be a sign of poor cash flow or overstocking. Your score suggests that the business is generally on target with industry peers.

39 FINANCIAL RATIOS: EFFICIENCY Days Receivables Current Asset Turnover Notes: 365/(Business Revenue/Receivables). Reflects the number of days that receivables are outstanding. Higher than average ratios may indicate a problem in the collection process. Target average or lower. Your score suggests that the business is generally on target with industry peers. Notes: Business Revenue/Current Assets. An indicator of the efficiency of short-term asset use. In general, higher is better. Your score suggests that the business is generally on target with industry peers.

40 FINANCIAL RATIOS: EFFICIENCY Fixed Asset Turnover (Business Revenue/Fixed Assets) Gross Margin: Business Revenue Notes: Business Revenue/Fixed Assets. An indicator of the efficiency of investment in fixed assets such as plant and equipment as a sales generator. Higher (but nonextreme) ratios indicate more efficiency while lower ratios suggest over-investment in fixed assets. Your score suggests that the business reflects higher fixed asset efficiency than industry peers. Notes: Gross Margin/Business Revenue. This is the profit ratio before discretionary expenses and taxes. This ratio indicates the "play" in discretionary expenses which could be adjusted to increase the Net Profit margin. It also suggests whether the costs of product or service delivery are line with industry norms. Your score suggests that the business is generally on target with industry peers.

41 FINANCIAL RATIOS: EFFICIENCY Sales Per Employee ($000) , , , , , , Notes: Business Revenue/FTE Employees. A basic efficiency measure developed outside the formal financial statement, often reflecting relative value-added. Higher is usually better. Your score suggests that the business is generally on target with industry peers.

42 FINANCIAL RATIOS: DEBT-RISK Financial Ratios: Debt-Risk Interest Coverage Current Liabilities: Net Worth Long-Term Liabilities: Net Worth Loans-Notes Payable/Net Worth Modified Z-Score Total Liabilities: Net Worth Fixed Assets: Net Worth Financial Ratios: Debt-Risk Interest Coverage Current Liabilities: Net Worth Long-Term Liabilities: Net Worth Loans-Notes Payable/Net Worth Modified Z-Score Total Liabilities: Net Worth Fixed Assets: Net Worth

43 FINANCIAL RATIOS: DEBT-RISK Variance from Interest Coverage -7.31% -6.27% 0.67% 0.00% 6.01% Current Liabilities: Net Worth 16.18% 18.18% 20.90% 24.62% 22.58% Long-Term Liabilities: Net Worth 21.43% 20.93% 25.64% 28.21% 23.68% Loans-Notes Payable/Net Worth 18.18% 18.18% 16.67% 27.27% 18.18% Modified Z-Score -3.37% -2.97% 1.26% 10.02% 2.96% Total Liabilities: Net Worth 18.18% 19.27% 22.64% 25.00% 23.00% Fixed Assets: Net Worth 12.00% 12.00% 8.33% 10.64% 6.25%

44 FINANCIAL RATIOS: DEBT-RISK Interest Coverage Current Liabilities: Net Worth Notes: [Earnings before Interest, Income Taxes due, Depreciation- Amortization]/Interest expense. Assesses financial stability by examining whether a company is profitable enough to pay interest expense. A ratio >1.00 is desirable. Your score suggests that the business reflects debt risk on par with industry peers. Notes: Current Liabilities/Net Worth. Reflects a level of capability to satisfy shortterm debt. The larger the ratio relative to industry norms, the higher the risk and the less security there is for creditors. Your score suggests that the business indicates significantly higher short-term debt risk relative to industry peers.

45 FINANCIAL RATIOS: DEBT-RISK Long-Term Liabilities: Net Worth Loans-Notes Payable/Net Worth Notes: Long-Term Liabilities/Net Worth, a measure of debt coverage. Indicates the business capability to satisfy long term debt. The larger the ratio relative to industry norms, the higher the risk. Your score suggests that the business indicates significantly higher long-term debt risk relative to industry peers. Notes: Loans-Notes Payable/Net Worth. The Loans plus notes payable portion of current liabilities, a measure of short-term debt coverage. In general, lower is better. Your score suggests that the business reflects higher than average overall debt risk in this peer group.

46 FINANCIAL RATIOS: DEBT-RISK Modified Z-Score Total Liabilities: Net Worth Notes: A modified form of the Altman Z-Score which evaluates default risk. The modified Z-Score substitutes Discretionary Owner Earnings for Net Profit and Net Worth for Retained Earnings to better capture small business operations. In all cases higher (at or above the industry level) is desired. Modified Z-Score calculations for this industry are: ([Operating Income/Total Assets]*6.72) + ([Net Worth/Total Liabilities]*1.05) + ([Working Capital/Total Assets]*6.5) + ([Discretionary Owner Earnings/Total Assets]*3.26) Your score suggests that the business indicates default risk on par with industry peers. Notes: Total liabilities/net Worth. This ratio helps to clarify the total risk impact of debt. Total liability levels should be comfortably less than Net Worth except in special circumstances. The most advantageous ratios are around or somewhat below industry norms, balancing current and long term liability values. Your score suggests that the business indicates significantly higher overall debt risk relative to industry peer group standards.

47 SOURCES & USES OF FUNDS Change In: Cash & cash equivalents 2,240 9,900 4,000 6,966 Worksheet: Accounts Receivable ,977-4,543-3,777 Inventory ,044-1, Other Curr Assets 355-4, Net Fixed Assets ,275-2,305-9,841 Other Non-Curr Assets 2,462-6,196-1,425-4,029 Accounts Payable 507 5,040 1,501 2,066 Loans/Notes Payable 405 4, Other current Liabilities -2,673 7, ,627 Long-term debt 1,617 3,097 2,698 3,586 Net Worth ,253 8,471 17,687 Total Sources & Uses 2,240 9,900 4,000 6,966 Cash: Beginning Period 90,771 93, , ,911 Cash: End Period 93, , , ,877 Change in Cash & Cash Equivalents 2,240 9,900 4,000 6,966 Sources and Uses: The Sources and Uses of Funds table tests the accuracy of the balance sheet and distinguishes the sources of funds from their use. It is the basic worksheet preliminary to a formal cash flow statement examining the liquidity of a business. A multi-year industry benchmark common size balance sheet, which includes overlapped but not identical sets of firms in each year, is not well-suited for the presentation of a formal cash flow analysis.

48 ABOUT THE DATA: DATA-SOURCES ABOUT THE DATA BizMiner data is widely accepted for industry analytical work, benchmarking, valuations, forensics and litigation. BizMiner content is accepted in US Tax Court (Bauer vs. IRS: T.C. Memo ) and is utilized by state, provincial and national taxing agencies in the US and Canada. Raw data analyzed for BizMiner reports is sourced from an array of the nation's government and private statistical sources. None of these raw data sources creates the final measures reflected in BizMiner industry profiles. In total, BizMiner accesses over a billion sourced data points from 15 million business operations for each of its twice annual updates covering a 3-5 year time series. Historical data and BizMiner algorithms are used to inform and test projections for non-reporting firms. Data elements are sourced specifically from: IRS SOI Corporation Tax Book IRS Statistics of Income US Economic Census US Census Quarterly Financial Reports US Census County Business Patterns Bureau of Labor Statistics Monthly Employment Reports Bureau of Labor Statistics Monthly Unemployment Reports Bureau of Labor Statistics Annual Wage Survey Bureau of Labor Statistics Productivity Reports Bureau of Labor Statistics Price Indices National Agricultural Statistical Service US Census Quarterly Financial Reports US Census Retail Trade Report InfoGroup, Inc. Credit Reporting Agencies Business Directories American Community Survey While 100% firm coverage is desirable for analysis purposes, the greatest value of BizMiner reports rests in discerning patterns of activity, which are reflected in the large samples used to develop our reports. The overall current coverage of the databases surpasses 13 million active business operations at any point in time. As is the case with any databases this large, some errors are inevitable. Some firms are missed and specific information on others is lacking from the database. Not all information received is uniform or complete, resulting in the need to develop projection algorithms for specific industry segments and metrics in some report series. No representation is made as to the accuracy of the databases utilized or the results of subsequent analyses. Neither the Brandow Company nor its resellers has undertaken independent primary research to confirm the accuracy of the data utilized in the Profile analyses. Neither the Brandow Company nor its resellers are responsible for conclusions drawn or decisions made based upon this data or analysis. In no event will the Brandow Company or its resellers be liable for any damages, direct, indirect, incidental or consequential resulting from the use of the information contained in BizMiner reports.

49 ABOUT THE DATA: SCORING OUR APPROACH TO SCORING Financial reports offer two types of scoring. The Variance shown for each ratio measures the percentage difference between client ratios and the industry average for the selected industry, sales class and market. The Variance results in a Score of 1-5 (5 being best) for each year of each selected ratio. The application of the Variances to the Score depends on the specific ratio involved; in some cases (which we call Standard Scoring) higher is better; in some, lower (Reverse Scoring) is better; in a few, closest to the industry average (Balanced Scoring) is best. You can find the detailed approach for each Financial ratio below. For each ratio, the score for all selected years is averaged to determine the overall Ratio Score. The Ratio Scores for each of the four ratio categories (Cash flow/solvency; Profitability; Efficiency; Debt-Risk) reflect the average Ratio Scores in each category. (P1 also provides Category Scores for each year as well as the average of all selected years.) The Overall Total Score on P1 of the Financial report reflects the average of the Category Scores. Scoring for ratios is calculated in one of three ways: Standard (higher is generally better) Reverse (lower is generally better) Balanced (middle is generally good, too high or too low is not) All three types are based on a scale of 1-5, with 5 being "best" and 1 being "worst". All percentages are shown as a deviation from the industry average. Standard (basically higher is better) +/-10% from average= 3 +11% to +20% above average= 4 >20% above average= 5 +11% to +20% below average= 2 >20% below average= 1 Reverse (lower is better) +/-10% from average= 3 +11% to +20% above average= 2 >20% above average= 1 +11% to +20% below average= 4 >20% below average= 5 Balanced (middle is good, too high or too low is not) +/-10% from average= 5 11% to 15% above or below average= 4 +16% to +25% above or below average= 3 25%-30% above or below average= 2 30% above or below average= 1 See the next page for Ratio Scoring details.

50 The corresponding applications for each ratio are highlighted below. Individual ratio scores are averaged for all selected years. CASH FLOW/SOLVENCY Summary: Average selected ratios for this category Current Ratio: STANDARD SCORING Quick Ratio: STANDARD SCORING Net Working Capital: STANDARD SCORING Accounts Payable: Business Revenue: BALANCED SCORING Days Payable: BALANCED SCORING PROFITABILITY Summary: Average selected ratios for this category Return on Business Revenue: STANDARD SCORING EBITDA: Business Revenue: STANDARD SCORING Discretionary Owner Earnings: STANDARD SCORING Return on Assets: STANDARD SCORING Return on Net Worth: STANDARD SCORING EFFICIENCY Summary: Average selected ratios for this category Assets: Business Revenue: BALANCED SCORING Days Inventory: BALANCED SCORING Days Receivables: REVERSE SCORING Current Asset Turnover: STANDARD SCORING Fixed Asset Turnover: STANDARD SCORING Gross Margin: Business Revenue: STANDARD SCORING Sales Per Employee: STANDARD SCORING DEBT-RISK Summary: Average selected ratios for this category Interest Coverage: STANDARD SCORING Current Liabilities: Net Worth: REVERSE SCORING Long-Term Liabilities: Net Worth: REVERSE SCORING Total Liabilities: Net Worth: REVERSE SCORING Loans-Notes Payable: Net Worth: REVERSE SCORING Current Liabilities: Inventory: BALANCED SCORING Modified Z-Score:: STANDARD SCORING