Detailed Balance Sheet - Actual and % Audit Mthd Unqualif'd Unqualif'd Unqualif'd Accountant Dowe Cheat Dowe Cheat Dowe Cheat CURRENT ASSETS Cash 394 2.2 - - 78 0.5 Accts/Notes Rec-Trade 6,752 38.3 7,977 27.1 4,268 29.0 Bad Debt Reserve (-) 352 2.0 567 1.9 900 6.1 Total Accts/Rec-Net 6,400 36.3 7,410 25.2 3,368 22.9 Inventory 8,083 45.8 16,150 54.9 8,523 57.8 TOTAL CURRENT ASSETS 14,877 84.3 23,560 80.1 11,969 81.2 NON-CURRENT ASSETS Machinery & Equipment 299 1.7 382 1.3 283 1.9 Furniture & Fixtures 841 4.8 1,317 4.5 737 5.0 Leasehold Improvements 333 1.9 484 1.6 218 1.5 Gross Fixed Assets 1,473 8.4 2,183 7.4 1,238 8.4 Accum Deprec & Impairment(-) 924 5.2 1,218 4.1 711 4.8 Total Fixed Assets - Net 549 3.1 965 3.3 527 3.6 Accts/Notes Rec-Long Term 88 0.5 28 0.1 - - Loans to Related Co - LTP 46 0.3 42 0.1 73 0.5 Prepaids/Deferreds - LTP 588 3.3 582 2.0 1,310 8.9 Def Inc Tax Recover - LTP 263 1.5 422 1.4 300 2.0 Non-Op Non-Cur Assets 1,229 7.0 1,080 3.7 558 3.8 Intangibles - Other - - 2,732 9.3 - - TOTAL NON-CURRENT ASSETS 2,763 15.7 5,851 19.9 2,768 18.8 TOTAL ASSETS 17,640 100.0 29,411 100.0 14,737 100.0 CURRENT LIABILITIES ST Loans Payable-Bank 3,285 18.6 7,872 26.8 5,011 34.0 CP-Capital Lease Obligatns - - 390 1.3 - - Accounts Payable-Trade 3,057 17.3 5,557 18.9 1,860 12.6 Other Accruals 1,025 5.8 1,287 4.4 412 2.8 Income Taxes Payable 298 1.7 78 0.3 128 0.9 Deferred Fed Inc Tax - CP 104 0.6 331 1.1 - - Operating Current Liabs 86 0.5 - - 106 0.7 TOTAL CURRENT LIABILITIES 7,855 44.5 15,515 52.8 7,517 51.0 NON-CURRENT LIABILITIES Capital Lease Obligations - - 780 2.7 - - Deferred Revenue 134 0.8 277 0.9 55 0.4 TOTAL NON-CURRENT LIABILITIES 134 0.8 1,057 3.6 55 0.4 TOTAL LIABILITIES 7,989 45.3 16,572 56.3 7,572 51.4 NET WORTH Preferred Stock 18,044 102.3 22,198 75.5 14,274 96.9 Common Stock 3-4 - 3 - Paid In Capital 9,293 52.7 5,309 18.1 12,924 87.7 Retained Earnings (17,689) (100.3) (14,672) (49.9) (20,036) (136.0) TOTAL NET WORTH 9,651 54.7 12,839 43.7 7,165 48.6 TOTAL LIABILITIES & NET WORTH 17,640 100.0 29,411 100.0 14,737 100.0 Working Capital 7,022 39.8 8,045 27.4 4,452 30.2 Tang Net Worth-Actual 9,651 54.7 10,107 34.4 7,165 48.6 Notes: 1. Customer MRA ID: 356992 Page 1
Detailed Comprehensive Income Statement - Actual and % Audit Mthd Unqualif'd Unqualif'd Unqualif'd Accountant Dowe Cheat Dowe Cheat Dowe Cheat Sales/Revenues 51,660 100.0 66,366 100.0 45,964 100.0 Cost of Sales/Revenues 32,729 63.4 41,407 62.4 29,591 64.4 GROSS PROFIT 18,931 36.6 24,959 37.6 16,373 35.6 Selling Expense 3,958 7.7 2,610 3.9 3,520 7.7 General & Admin Expense 395 0.8 3,444 5.2 746 1.6 Advertising Expense 974 1.9 1,591 2.4 589 1.3 Lease/Rent Expense 732 1.4 832 1.3 612 1.3 Depreciation 219 0.4 294 0.4 228 0.5 Personnel Expense 8,846 17.1 11,035 16.6 7,190 15.6 TOTAL OPERATING EXPENSE 15,124 29.3 19,806 29.8 12,885 28.0 NET OPERATING PROFIT 3,807 7.4 5,153 7.8 3,488 7.6 Interest Expense (-) 166 0.3 221 0.3 220 0.5 Interest Income 13-5 - 1 - Total Interest Inc(Exp) (153) (0.3) (216) (0.3) (219) (0.5) Other Income 4-9 - 67 0.1 Gain(Loss) on Asset Sale (2) - - - - - TOTAL OTHER INCOME(EXP) (151) (0.3) (207) (0.3) (152) (0.3) PROFIT BEFORE TAXES 3,656 7.1 4,946 7.5 3,336 7.3 Current Income Tax 1,310 2.5 1,928 2.9 717 1.6 Income Tax Credit (+) - - - - 300 0.7 TOTAL INCOME TAX EXPENSE 1,310 2.5 1,928 2.9 417 0.9 NET PROFIT 2,346 4.5 3,018 4.5 2,919 6.4 EBIT 3,822 7.4 5,167 7.8 3,556 7.7 EBITDA 4,041 7.8 5,461 8.2 3,784 8.2 EBIDA 2,731 5.3 3,533 5.3 3,367 7.3 COMPREHENSIVE INCOME 2,346 4.5 3,018 4.5 2,919 6.4 Withdrawals - - (25,281) Adj to Retained Earnings 1 (1) 16,998 Page 2
Detailed Reconciliations Reconciliation of Retained Earnings BEGINNING RETAINED EARNINGS, AS PREVIOUSLY REPORTED (17,689) (14,672) Adj to Retained Earnings (1) 16,998 BEG RET. EARNINGS, RESTATED (17,690) 2,326 Net Profit 3,018 2,919 Withdrawals - (25,281) ENDING RETAINED EARNINGS (14,672) (20,036) Reconciliation of Net Worth BEGINNING NET WORTH 9,651 12,839 Net Profit 3,018 2,919 Div & Withdrawals-Cash - (25,281) Adjs to Ret Earnings (Above) (1) 16,998 Increase(Decrease) in: Preferred Stock 4,154 (7,924) Common Stock 1 (1) Paid In Capital (3,984) 7,615 ACTUAL ENDING NET WORTH 12,839 7,165 INCR(DECR) IN NET WORTH 3,188 (5,674) Reconciliation of Working Capital BEGINNING WORKING CAPITAL 7,022 8,045 Decrease(Increase) in Non-Current Assets: Total Fixed Assets-Net (416) 438 Accts/Notes Rec-Long Term 60 28 Loans to Related Co - LTP 4 (31) Prepaids/Deferreds - LTP 6 (728) Def Inc Tax Recover - LTP (159) 122 Non-Op Non-Cur Assets 149 522 Intangibles - Net (2,732) 2,732 Increase(Decrease) in Non-Current Liabilities: Capital Lease Obligations 780 (780) Other Non-Current Liabilities 143 (222) Increase(Decrease) in Net Worth 3,188 (5,674) ENDING WORKING CAPITAL 8,045 4,452 Page 3
Detailed UCA Cash Flow Sales/Revenues 66,366 45,964 Chg in Accts/Notes Rec-Trade (1,225) 3,709 Chg in Bad Debt Reserve (-) 215 333 Chg in Deferred Revenue 143 (222) Cash Collected From Sales 65,499 49,784 Cost of Sales/Revenues (41,407) (29,591) Chg in Inventory (8,067) 7,627 Chg in Accounts Payable-Trade 2,500 (3,697) Cash Paid To Suppliers (46,974) (25,661) CASH FROM TRADING ACTIVITIES 18,525 24,123 Selling Expense (2,610) (3,520) General & Admin Expense (3,444) (746) Advertising Expense (1,591) (589) Personnel Expense (11,035) (7,190) Lease/Rent Expense (832) (612) Chg in Prepaids/Deferreds - LTP 6 (728) Chg in Other Accruals 262 (875) Cash Paid for Operating Costs (19,244) (14,260) CASH AFTER OPERATIONS (719) 9,863 Other Income 9 67 Interest Income 5 1 Chg in Operating Current Liabs (86) 106 Current Income Tax (1,928) (717) Income Tax Credit (+) - 300 Chg in Def Inc Tax Recover - LTP (159) 122 Chg in Income Taxes Payable (220) 50 Chg in Deferred Fed Inc Tax - CP 227 (331) Other Income(Exp) & Taxes Paid (2,152) (402) NET CASH AFTER OPERATIONS (2,871) 9,461 Interest Expense (-) (221) (220) Withdrawals - (25,281) Cash Paid for Dividends & Interest (221) (25,501) NET CASH INCOME (3,092) (16,040) CP-Capital Lease Obligatns - (390) Current Portion Long Term Debt - (390) CASH AFTER DEBT AMORT. (3,092) (16,430) Chg in Machinery & Equipment (83) 99 Chg in Furniture & Fixtures (476) 580 Chg in Leasehold Improvements (151) 266 Chg in Accum Deprec & Impairment(-) 294 (507) Depreciation (294) (228) Chg in Net Fixed Assets (710) 210 Chg in Accts/Notes Rec-Long Term 60 28 Chg in Loans to Related Co - LTP 4 (31) Chg in Non-Op Non-Cur Assets 149 522 Chg in Investments 213 519 Chg in Intangibles - Other (2,732) 2,732 Chg in Net Intangibles (2,732) 2,732 Cash Paid for Plant and Investments (3,229) 3,461 FINANCING SURPLUS (REQMNTS) (6,321) (12,969) Page 4
Detailed UCA Cash Flow Chg in ST Loans Payable-Bank 4,587 (2,861) Chg in Long Term Debt 1,170 (780) Adj to Retained Earnings (1) 16,998 Chg in Preferred Stock 4,154 (7,924) Chg in Common Stock 1 (1) Chg in Paid In Capital (3,984) 7,615 Total External Financing 5,927 13,047 CASH AFTER FINANCING (394) 78 Add: Cash 394 - ENDING CASH & EQUIVALENTS - 78 Page 5
Detailed Ratios LIQUIDITY Working Capital 7,022 8,045 4,452 Quick Ratio 0.86 0.48 0.46 Current Ratio 1.89 1.52 1.59 Net Sales/Working Capital 7.36 8.25 10.32 LEVERAGE Net Worth-Actual 9,651 12,839 7,165 Tang Net Worth-Actual 9,651 10,107 7,165 Eff Tang Net Worth-Actual 9,651 10,107 7,165 Debt/Worth 0.83 1.29 1.06 Debt/Tang Worth 0.83 1.64 1.06 Debt Less Sub Debt-Liability/Eff Tg Wth 0.83 1.64 1.06 Borrowed Funds/Eff Tg Worth 0.34 0.89 0.70 LT Debt/Net Fixed Assets - 1.21 - Total Liabilities/Total Assets 0.45 0.56 0.51 Debt to Book Capital 0.25 0.41 0.41 COVERAGE Interest Coverage 23.02 23.38 16.16 Net Income+Depr+Amort-Divs/CPLTD N/A 8.49 N/A Net Income+Depr+Amort-Divs/CPLTD pp N/A (56.75) Input Cash Flow Coverage - - - UCA Cash Flow Coverage (4.70) 0.37 UCA Cash Flow/CPLTD pp (12.99) 0.37 EBITDA/Interest Exp+CPLTD 24.34 8.94 17.20 EBITDA/Interest Exp+CPLTD pp 24.71 6.20 EBITDA 4,041 5,461 3,784 EBIDA 2,731 3,533 3,367 Fixed Charge Coverage 5.32 4.36 5.28 (FFO + Interest) / Interest Expense N/A 18.50 17.16 Debt Coverage Ratio N/A (0.34) 1.84 Funded Debt/EBITDA 0.81 1.66 1.32 PROFITABILITY (%) Return on Assets 13.30 10.26 19.81 Return on Equity 24.31 23.51 40.74 Gross Margin 36.65 37.61 35.62 Gross Margin (plus Depr) % 36.65 37.61 35.62 Operating Expense % 29.28 29.84 28.03 Operating Expense (excl Depr) % 28.85 29.40 27.54 Operating Profit Margin 7.37 7.76 7.59 Operating Profit Margin (plus Depr) % 7.79 8.21 8.08 Net Margin 4.54 4.55 6.35 Dividend Payout Rate - - 866.08 Effective Tax Rate 35.83 38.98 12.50 EBITA Margin % 7.40 7.79 7.74 Page 6
Detailed Ratios ACTIVITY Gross Accounts Receivable Days 47.71 43.87 33.89 Net Accounts Receivable Days 45.22 40.75 26.75 Inventory Days on Hand 90.14 142.36 105.13 Inventory Days on Hand (excl Depr) 90.14 142.36 105.13 Accounts Payable Days 34.09 48.98 22.94 Accounts Payable Days (excl Depr) 34.09 48.98 22.94 Net Sales/Total Assets 2.93 2.26 3.12 Net Sales/Net Worth 5.35 5.17 6.42 Net Sales/Net Fixed Assets 94.10 68.77 87.22 Profit Before Taxes/Total Assets (%) 20.73 16.82 22.64 CAPEX / Depreciation Expense N/A 2.41 (0.92) Cash to Net Sales 0.01 - - Log 10 (Net Sales) 7.71 7.82 7.66 GROWTH (%) Total Assets Growth 66.73 (49.89) Total Liabilities Growth 107.44 (54.31) Net Worth Growth 33.03 (44.19) Net Sales Growth 28.47 (30.74) Operating Profit Growth 35.36 (32.31) Net Profit Growth 28.64 (3.28) Sustainable Growth 32.11 37.15 (75.73) CASH FLOW RCF / Adjusted Debt 0.28 (2.50) RCF / Net Adjusted Debt 0.28 (2.52) (RCF - CAPEX) / Adjusted Debt 0.22 (2.48) FCF / Adjusted Debt (0.27) (1.74) FCF / Net Adjusted Debt (0.27) (1.75) FFO / Adjusted Debt N/A 0.28 0.41 FFO / Net Adjusted Debt N/A 0.28 0.41 CAPEX / CFO N/A (0.23) (0.02) CFO / Profit Before Extraordinary Items N/A (1.02) 3.17 Page 7
Cash Flow Management CASH FLOW DRIVERS CASH FLOW DRIVERS Net Sales Growth 28.47 (30.74) Gross Margin (plus Depr) % 36.65 37.61 35.62 Operating Expense (excl Depr) % 28.85 29.40 27.54 Accounts Receivable Days 45.22 40.75 26.75 Inventory Days on Hand (excl Depr) 90.14 142.36 105.13 Accounts Payable Days (excl Depr) 34.09 48.98 22.94 OTHER FACTORS Other Operating Assets 588 582 1,310 Accrued Expenses Days 25.10 24.08 11.88 Other Current Liabilities - - - CASH MARGIN MANAGEMENT SUMMARY GROSS PROFIT: BEGINNING GROSS PROFIT 18,931 24,959 Gross Profit Management 639 (913) Gross Profit Growth 5,389 (7,673) ENDING GROSS PROFIT (PLUS DEPR) 24,959 16,373 OPERATING EXPENSES: BEGINNING OPERATING EXPENSE (14,905) (19,512) Operating Expense Management (364) 857 Operating Expense Growth (4,243) 5,998 ENDING OPER EXP (LESS DEPR) (19,512) (12,657) CASH OPERATING PROFIT 5,447 3,716 TRADING ACCOUNT MANAGEMENT SUMMARY CASH IMPACT OF MANAGEMENT: Accounts Receivable 917 1,627 Inventory (5,924) 3,018 Accounts Payable 1,689 (2,111) Total Management - Trading Acct (3,318) 2,534 Other Operating Assets 173 (907) Accruals (55) (423) Other Current Liabilities - - Total Management - Other Factors 119 (1,330) TOTAL CASH IMPACT OF MGMT (3,199) 1,205 CASH IMPACT OF GROWTH: Accounts Receivable (1,784) 2,193 Inventory (2,143) 4,609 Accounts Payable 811 (1,586) Total Growth - Trading Accounts (3,116) 5,216 Other Operating Assets (167) 179 Accruals 317 (452) Other Current Liabilities - - Total Growth - Other Factors 149 (273) TOTAL CASH IMPACT OF SALES GROWTH (2,967) 4,942 TOTAL TRADING ACCOUNT AND OTHER FACTOR CHG (6,166) 6,147 CASH AFTER OPERATIONS (719) 9,863 Page 8
Executive Financial Statement - Actual and % Audit Mthd Unqualif'd Unqualif'd Unqualif'd Accountant Dowe Cheat Dowe Cheat Dowe Cheat ASSETS Cash & Near Cash 394 2.2 - - 78 0.5 Accts/Notes Rec (Net) 6,400 36.3 7,410 25.2 3,368 22.9 Inventory 8,083 45.8 16,150 54.9 8,523 57.8 TOTAL CURRENT ASSETS 14,877 84.3 23,560 80.1 11,969 81.2 Net Fixed Assets 549 3.1 965 3.3 527 3.6 LT Receivables & Investments 134 0.8 70 0.2 73 0.5 Other Non-Current Assets 2,080 11.8 2,084 7.1 2,168 14.7 Intangibles - Net - - 2,732 9.3 - - TOTAL NON-CURRENT ASSETS 2,763 15.7 5,851 19.9 2,768 18.8 TOTAL ASSETS 17,640 100.0 29,411 100.0 14,737 100.0 LIABILITIES/NET WORTH S/T Loans Payable 3,285 18.6 7,872 26.8 5,011 34.0 Current Portion - LTD - - 390 1.3 - - Accounts Payable 3,057 17.3 5,557 18.9 1,860 12.6 Accrued Liabilities 1,025 5.8 1,287 4.4 412 2.8 Taxes Payable 402 2.3 409 1.4 128 0.9 Other Current Liabilities 86 0.5 - - 106 0.7 TOTAL CURRENT LIABILITIES 7,855 44.5 15,515 52.8 7,517 51.0 Long Term Debt - - 780 2.7 - - Other Non-Current Liabilities 134 0.8 277 0.9 55 0.4 TOTAL NON-CURRENT LIABILITIES 134 0.8 1,057 3.6 55 0.4 TOTAL LIABILITIES 7,989 45.3 16,572 56.3 7,572 51.4 TOTAL NET WORTH 9,651 54.7 12,839 43.7 7,165 48.6 TOTAL LIABILITIES & NET WORTH 17,640 100.0 29,411 100.0 14,737 100.0 INCOME STATEMENT Net Sales/Revenues 51,660 100.0 66,366 100.0 45,964 100.0 Cost of Sales/Revenues 32,729 63.4 41,407 62.4 29,591 64.4 GROSS PROFIT 18,931 36.6 24,959 37.6 16,373 35.6 Net Operating Expenses 14,905 28.9 19,512 29.4 12,657 27.5 Depr & Amort 219 0.4 294 0.4 228 0.5 NET OPERATING PROFIT 3,807 7.4 5,153 7.8 3,488 7.6 Interest Income(Expense) (153) (0.3) (216) (0.3) (219) (0.5) Other Income(Expense) 2-9 - 67 0.1 PROFIT BEFORE TAXES 3,656 7.1 4,946 7.5 3,336 7.3 Income Taxes 1,310 2.5 1,928 2.9 417 0.9 PROFIT BEFORE EXTRAORDINARY ITEMS 2,346 4.5 3,018 4.5 2,919 6.4 NET PROFIT 2,346 4.5 3,018 4.5 2,919 6.4 COMPREHENSIVE INCOME 2,346 4.5 3,018 4.5 2,919 6.4 Cash Dividends & Withdrawals - - (25,281) Adj to Retained Earnings 1 (1) 16,998 Page 9
Consultant Ratios PROFITABILITY Profit Before Taxes/Sales (%) 7.08 7.45 7.26 Profit Before Taxes/TNW (%) 37.88 48.94 46.56 Operating Expenses/Sales (%) 29.28 29.84 28.03 Operating Leverage (%) 31.61 32.36 30.33 BORROWING AND CAPITAL SPENDING Capital Expenditures 710 (210) Avg Cap Expenditures 710 250 Expected Capital Expenditures 450 (69) Avg Expected Cap Expenditures 450 191 $ Change Short Term Debt 4,587 (2,861) $ Change Long Term Debt 780 (780) CONSULTANT ALERTS Def Tax + Tax Payable/Tax Exp (%) 30.69 21.21 30.70 Average Tax Rate (%) 37.41 29.10 Other Cur Assets/Tot Cur Assets (%) - - - Other Cur Liabs/Tot Cur Liabs (%) 1.09-1.41 Other Non Cur Assets/Tot Assets (%) 7.73 13.20 4.28 Accum Deprec/Gross Fixed Assets (%) 62.73 55.79 57.43 Other Income/Net Income Aft Tax (%) 0.72 0.46 2.33 Investments/Total Assets (%) 0.76 0.24 0.50 Other Cash Income Adjustments (72) 174 % Growth Accrued Liabs 25.56 (67.99) % Growth Pref Stock 23.02 (35.70) % Growth Common Stock 33.33 (25.00) % Growth Other Equity (42.87) 143.44 Page 10
RiskCalc for Private Firm (United States) - Version 3.1 Industry Classification: NAICS Code: 424330 MKMV.RiskAnalyst.Reports.DefaultRisk (5.5.1.0) EDF credit measures calculated with Credit Cycle Adjustments Current Date 12/2010 12/2011 12/2012 2/2013 12/31/2012 12 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Accountant Dowe Cheat Dowe Cheat Dowe Cheat Source Currency: USD United States Dollars Dollars Target Currency: USD United States Exchange Rate: 1.00000 1.00000 1.00000 1.00000 Exchange Rate Date: 12/31/2010 12/31/2011 12/31/2012 12/31/2012 1 Yr Bond Default Rate Mapping Ba1.edf Ba2.edf Ba1.edf Ba1.edf 1 Yr Percentile 42.73 64.71 38.03 41.79 1 Yr Custom Rating NA NA NA NA 5 Yr Bond Default Rate Mapping Ba1.edf Ba3.edf Ba1.edf Ba1.edf 5 Yr Percentile 46.78 78.13 49.39 52.31 5 Yr Custom Rating NA NA NA NA Cumulative EDF Credit Measures (%): 1 Year 0.78 1.47 0.70 0.76 2 Year 1.72 3.32 1.65 1.79 3 Year 2.72 5.31 2.73 2.95 4 Year 3.77 7.38 3.90 4.20 5 Year 4.84 9.51 5.12 5.51 Forward EDF Credit Measures (%): 1 Year 0.78 1.47 0.70 0.76 2 Year 0.95 1.87 0.96 1.04 3 Year 1.02 2.06 1.10 1.18 4 Year 1.08 2.19 1.20 1.29 5 Year 1.12 2.30 1.28 1.37 Annualized EDF Credit Measures (%): 1 Year 0.78 1.47 0.70 0.76 2 Year 0.86 1.67 0.83 0.90 3 Year 0.92 1.80 0.92 0.99 4 Year 0.96 1.90 0.99 1.07 5 Year 0.99 1.98 1.05 1.13 1-Yr. Relative Contributions: Return On Assets (ROA) -18.56-12.24-15.19-15.19 Sales Growth N/A 5.49 8.09 8.09 Cash to Assets 13.56 23.48 13.90 13.90 Change in AR Turnover N/A -3.47 4.91 4.91 Change in Return On Assets (ROA) N/A -0.41 2.75 2.75 Inventory to Sales 3.41 4.45 4.23 4.23 Cash Flow to Interest Expense -12.94 15.76-11.11-11.11 Retained Earnings to Current Liabilities 31.12 19.59 24.81 24.81 Current Liabilities to Sales -1.71 4.49 0.11 0.11 Leverage -15.80-8.64-12.59-12.59 Size -2.91-1.99-2.31-2.31 5-Yr. Relative Contributions: Return On Assets (ROA) -8.55-5.43-6.83-6.83 Sales Growth N/A 6.92 10.33 10.33 Cash to Assets 13.04 21.78 13.06 13.06 Change in AR Turnover N/A -2.51 3.60 3.60 Change in Return On Assets (ROA) N/A -0.38 2.56 2.56 Inventory to Sales 6.49 8.17 7.86 7.86 Cash Flow to Interest Expense -15.87 18.63-13.31-13.31 Retained Earnings to Current Liabilities 33.60 20.39 26.15 26.15 Current Liabilities to Sales -1.59 4.02 0.10 0.10 Page 11
RiskCalc for Private Firm (United States) - Version 3.1 Industry Classification: NAICS Code: 424330 MKMV.RiskAnalyst.Reports.DefaultRisk (5.5.1.0) Current Date 12/2010 12/2011 12/2012 2/2013 12/31/2012 12 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Accountant Dowe Cheat Dowe Cheat Dowe Cheat Leverage -14.98-7.91-11.66-11.66 Size -5.88-3.86-4.54-4.54 1-Yr. Relative Sensitivities: Return On Assets (ROA) -9.99-14.25-6.51-6.51 Sales Growth 0.00 144.83-13.79-13.79 Cash to Assets -541.05-522.98-696.11-696.11 Change in AR Turnover 0.00-95.48-54.76-54.76 Change in Return On Assets (ROA) 0.00-148.03 93.41 93.41 Inventory to Sales 39.98 20.73 36.30 36.30 Cash Flow to Interest Expense -15.65-38.09-2.23-2.23 Retained Earnings to Current Liabilities -11.35-8.42-11.81-11.81 Current Liabilities to Sales 136.12 68.40 136.78 136.78 Leverage 44.61 38.04 46.14 46.14 Size -1.25-0.76-2.17-2.17 5-Yr. Relative Sensitivities: Return On Assets (ROA) -4.07-5.86-3.12-3.12 Sales Growth 0.00 185.08-18.78-18.78 Cash to Assets -519.56-534.94-671.12-671.12 Change in AR Turnover 0.00-63.96-42.80-42.80 Change in Return On Assets (ROA) 0.00-134.87 92.82 92.82 Inventory to Sales 76.40 35.23 72.03 72.03 Cash Flow to Interest Expense -17.83-41.69-2.84-2.84 Retained Earnings to Current Liabilities -10.83-8.11-13.28-13.28 Current Liabilities to Sales 127.57 56.70 133.09 133.09 Leverage 41.50 32.20 45.57 45.57 Size -2.24-1.36-4.55-4.55 Percentiles: Return On Assets (ROA) 82.90 76.10 91.13 91.13 Sales Growth N/A 86.58 4.02 4.02 Cash to Assets 40.70 2.00 21.30 21.30 Change in AR Turnover N/A 28.26 12.54 12.54 Change in Return On Assets (ROA) N/A 30.26 92.27 92.27 Inventory to Sales 83.42 93.96 88.01 88.01 Cash Flow to Interest Expense N/A 6.97 96.17 96.17 Retained Earnings to Current Liabilities 3.54 5.47 3.28 3.28 Current Liabilities to Sales 49.93 74.31 54.43 54.43 Leverage 4.00 37.07 4.00 4.00 Size 70.44 76.77 66.59 66.59 Ratios or Levels: Return On Assets (ROA) 13.30 10.26 19.81 19.81 Sales Growth N/A 28.47-30.74-30.74 Cash to Assets 2.23 0.00 0.53 0.53 Change in AR Turnover N/A -1.22-3.84-3.84 Change in Return On Assets (ROA) N/A -3.04 9.55 9.55 Inventory to Sales 15.65 24.33 18.54 18.54 Cash Flow to Interest Expense N/A -504.98 5,343.64 5,343.64 Retained Earnings to Current Liabilities -225.19-94.57-266.54-266.54 Current Liabilities to Sales 15.21 23.38 16.35 16.35 Leverage 0.00 5.73 0.00 0.00 Size 1,425,162.90 2,295,248.05 1,125,739.95 1,125,739.95 When defining percentiles, be aware that observations in the sample population are sorted in order of increasing ratio value. This means that the item's impact on risk relative to its location within a certain percentile depends upon the relationship between the ratio and risk. An item that is in a high percentile for profitability has a positive impact by lowering the probability of default, since more profitable companies have lower risk of default. Conversely, an item in a high percentile in a leverage ratio has a negative impact, since a highly leveraged company has a higher risk of default. EDF Notes for statement: 12/31/2010 Inventory Previous Year: EDF is based on sector averages for corresponding ratio. Page 12
RiskCalc for Private Firm (United States) - Version 3.1 Industry Classification: NAICS Code: 424330 MKMV.RiskAnalyst.Reports.DefaultRisk (5.5.1.0) Accounts Receivable Previous Year: EDF is based on sector averages for corresponding ratio. Total Assets Previous Year: EDF is based on sector averages for corresponding ratio. Accounts Payable Previous Year: EDF is based on sector averages for corresponding ratio. Sales Previous Year: EDF is based on sector averages for corresponding ratio. Net Income Previous Year: EDF is based on sector averages for corresponding ratio. NAICS: 424330:Trade EDF Notes for statement: 12/31/2011 NAICS: 424330:Trade EDF Notes for statement: 12/31/2012 NAICS: 424330:Trade Page 13