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Exhibit 1 Actual and Forecasted Financial Statements Assuming No Investment in New Product Line, No Sale of New
Common Stock, and All Borrowings at 9.25%
Income Statement ($000s except EPS)
Actual
Forecast
2007
2008
2009
2010
2011
2012
$77,131
$62,519
81.1%
$14,612
$80,953
5.0%
$68,382
84.5%
$12,571
$89,250
10.2%
$72,424
81.1%
$16,826
$120,000
34.5%
$97,320
81.1%
$22,680
$144,000
20.0%
$116,784
81.1%
$27,216
$144,000
0.0%
$116,784
81.1%
$27,216
$3,726
4.8%
$6,594
8.5%
$4,292
$4,133
5.1%
$7,536
9.3%
$902
$4,416
4.9%
$7,458
8.4%
$4,952
$6,000
5.0%
$10,032
8.4%
$6,648
$7,200
5.0%
$12,038
8.4%
$7,978
$7,200
5.0%
$12,038
8.4%
$7,978
$480
$652
$735
-$39
-$27
-$35
$937
9.25%
-$50
$1,323
9.25%
-$50
$1,565
9.25%
-$50
$3,773
$223
$4,182
$5,661
$6,604
$6,363
Income taxes
- % of income before taxes
Net income
$1,509
40.0%
$2,264
$89
39.9%
$134
$1,673
40.0%
$2,509
$2,264
$2,642
$2,545
$3,396
$3,963
$3,818
$1.52
$0.09
$1.68
$2.28
$2.66
$2.56
2007
2008
2009
2010
2011
2012
$2,536
3.3%
$10,988
33
$9,592
56
$309
0.3%
$23,425
$2,218
2.7%
$12,864
33
$11,072
59
$324
0.2%
$26,478
$2,934
3.3%
$14,671
37
$11,509
58
$357
0.2%
$29,471
$3,960
3.3%
$19,726
60
$13,865
52
$480
0.4%
$38,031
$4,752
3.3%
$23,671
60
$16,638
52
$576
0.4%
$45,637
$4,752
3.3%
$23,671
60
$16,638
52
$576
0.4%
$45,637
$5,306
$792
$4,514
$6,116
$1,174
$4,942
$7,282
$1,633
$5,649
$8,182
$2,179
$6,003
$9,082
$2,793
$6,290
$9,982
$3,474
$6,508
$27,939
$31,420
$35,120
$44,034
$51,926
$52,145
Accounts payable
- Days purchases
Notes payable
$3,084
30
$6,620
$4,268
38
$8,873
$3,929
33
$10,132
$4,799
30
$14,306
$5,759
30
$16,914
$5,759
30
$13,325
Accrued expenses
$563
$591
$652
$876
$1,051
$1,051
$151
10%
$478
0.6%
$10,896
$9
10%
$502
0.6%
$14,243
$167
10%
$554
0.6%
$15,434
$226
10%
$744
0.6%
$20,951
$264
10%
$893
0.6%
$24,881
$255
10%
$893
0.6%
$21,282
$15
$7,980
$9,048
$17,043
$15
$7,980
$9,182
$17,177
$15
$7,980
$11,691
$19,686
$15
$7,980
$15,087
$23,082
$15
$7,980
$19,050
$27,045
$15
$7,980
$22,868
$30,863
$27,939
$31,420
$35,120
$44,034
$51,926
$52,145
1,491,662
1,491,662
1,491,662
1,491,662
1,491,662
1,491,662
$11.43
$11.52
$13.20
$15.47
$18.13
$20.69
Return on equity
Interest coverage ratio (times)
Notes payable / accounts receivable
Notes payable / shareholders' equity
Total liabilities / shareholders' equity
13.3%
8.9
60.2%
38.8%
63.9%
0.8%
1.4
69.0%
51.7%
82.9%
12.7%
6.7
69.1%
51.5%
78.4%
14.7%
7.1
72.5%
62.0%
90.8%
14.7%
6.0
71.5%
62.5%
92.0%
12.4%
5.1
56.3%
43.2%
69.0%
Sales
- YOY growth
Cost of goods sold
- % of sales
Gross margin
Research and development
- % of sales
Selling, general and administrative
- % of sales
Operating income
Interest expense
- Interest rate %
Other income (expenses)
Exhibit 1 (continued)
Balance Sheet ($000s except shares outstanding and book value per share)
Actual
Cash
- % of sales
Accounts receivable
- Days of sales
Inventories
- Days of COGS
Prepaid expenses
- % of sales
Total current assets
Property, plant & equipment at cost
Less: Accumulated depreciation
Net property, plant & equipment
Total assets
Forecast
$128,000
-11.1%
Micron Technology
D = book value of debt (4-30-2010)
BVE = book value of equity (4-30-2010)
MVE = market value of equity (4-30-2010)
$2,760
$5,603
$7,925
$975
$4,157
$9,135
$0
$276
$699
Exhibit 2 (continued)
$10,132
$37,292
25.8%
74.2%
1.25
1.03
9.6%
90.4%
1.36
1.28
0.0%
100.0%
1.00
1.00
1.10
21.4%
78.6%
18.0%
82.0%
1.10
1.25
3.70%
1.25
6.00%
11.20%
18.00%
7.25%
40.00%
82.00%
11.20%
9.96%
2011
2012
2013
2014
2015
Total
Investment in equipment
$5,648
26.15%
-$5,648
$7,322
26.15%
-$1,674
$7,322
26.15%
$0
$2,877
26.15%
$4,446
$1,308
26.15%
$1,569
$0
26.15%
$1,308
$0
$21,600
$17,064
79.00%
$0
$1,806
8.36%
$300
$28,000
$22,120
79.00%
$0
$2,341
8.36%
$0
$28,000
$22,120
79.00%
$0
$2,341
8.36%
$0
$11,000
$8,690
79.00%
$0
$920
8.36%
$0
$5,000
$3,950
79.00%
$0
$418
8.36%
$0
$2,430
$972
$3,539
$1,416
$3,539
$1,416
$1,390
$556
$632
$253
Net income
Depreciation of equipment @ 20% SLM
$1,458
$440
$2,124
$440
$2,124
$440
$834
$440
$379
$440
$1,898
$2,564
$2,564
$1,274
$819
$225
$2,564
$7,009
$2,843
$2,127
Sales
Cost of goods sold (includes equipment depreciation)
- % of sales
Research & development
Selling, general & administrative
- % of slaes
Launch promotion
-$7,848
$3,014
21.9%
17.3%
Cost of capital
9.96%
$2,200
2008
2009
2010
Sales
Cost of goods sold (includes equipment depreciation)
Research and development
Selling, general and administrative (includes launch)
Increase in operating income
Cash (3.3% of sales)
Accounts receivable (60 DSO)
Inventories (52 days of COGS)
Prepaid expenses (0.4% of sales)
Net property, plant & equipment
Accounts payable (60 days of purchases)
Accrued expenses (0.73% of sales)
Other current liabilities (0.62% of sales)
$2,200
Forecast
2011
2012
$21,600
$17,064
$0
$2,106
$2,430
$28,000
$22,120
$0
$2,341
$3,539
$713
$3,551
$2,431
$86
$1,760
$924
$4,603
$3,151
$112
$1,320
$842
$158
$134
$1,091
$204
$174
26.15%
26.15%
2007
Actual
2008
2009
2010
Forecast
2011
2012
$77,131
$62,519
$14,612
$80,953
$68,382
$12,571
$89,250
$72,424
$16,826
$120,000
$97,320
$22,680
$165,600
$133,848
$31,752
$172,000
$138,904
$33,096
$3,726
$6,594
$4,292
$4,133
$7,536
$902
$4,416
$7,458
$4,952
$6,000
$10,032
$6,648
$7,200
$14,144
$10,408
$7,200
$14,379
$11,517
$480
-$39
$652
-$27
$735
-$35
$937
-$50
$1,527
-$50
$2,118
-$50
$3,773
$223
$4,182
$5,661
$8,831
$9,349
Income taxes
Net income
$1,509
$2,264
$89
$134
$1,673
$2,509
$2,264
$3,396
$3,532
$5,299
$3,740
$5,609
$1.52
$0.09
$1.68
$2.28
$3.55
$3.76
2007
2008
2009
2010
Forecast
2011
2012
$2,536
$10,988
$9,592
$309
$23,425
$2,218
$12,864
$11,072
$324
$26,478
$2,934
$14,671
$11,509
$357
$29,471
$3,960
$19,726
$13,865
$480
$38,031
$5,465
$27,222
$19,069
$662
$52,418
$5,676
$28,274
$19,789
$688
$54,427
$5,306
$792
$4,514
$6,116
$1,174
$4,942
$7,282
$1,633
$5,649
$10,382
$2,179
$8,203
$11,282
$3,233
$8,050
$12,182
$4,354
$7,828
$27,939
$31,420
$35,120
$46,234
$60,467
$62,255
Accounts payable
Notes payable
Accrued expenses
Income taxes payable
Other current liabilities
Total current liabilities
$3,084
$6,620
$563
$151
$478
$10,896
$4,268
$8,873
$591
$9
$502
$14,243
$3,929
$10,132
$652
$167
$554
$15,434
$4,799
$16,506
$876
$226
$744
$23,151
$6,601
$22,897
$1,209
$353
$1,027
$32,086
$6,850
$18,719
$1,256
$374
$1,066
$28,265
$15
$7,980
$9,048
$17,043
$15
$7,980
$9,182
$17,177
$15
$7,980
$11,691
$19,686
$15
$7,980
$15,087
$23,082
$15
$7,980
$20,386
$28,381
$15
$7,980
$25,995
$33,990
$27,939
$31,420
$35,120
$46,234
$60,467
$62,255
1,491,662
1,491,662
1,491,662
1,491,662
1,491,662
1,491,662
$11.43
$11.52
$13.20
$15.47
$19.03
$22.79
Return on equity
Interest coverage ratio (times)
Notes payable / accounts receivable
Notes payable / shareholders' equity
Total liabilities / shareholders' equity
13.3%
8.9
60.2%
38.8%
63.9%
0.8%
1.4
69.0%
51.7%
82.9%
12.7%
6.7
69.1%
51.5%
78.4%
14.7%
7.1
83.7%
71.5%
100.3%
18.7%
6.8
84.1%
80.7%
113.1%
16.5%
5.4
66.2%
55.1%
83.2%
Sales
Cost of goods sold
Gross margin
Research and development
Selling, general and administrative
Operating income
Interest expense
Other income (expenses)
Exhibit 5 (continued)
Balance Sheet ($000s except shares outstanding and book value per share)
Actual
Cash
Accounts receivable
Inventories
Prepaid expenses
Total current assets
Property, plant & equipment at cost
Less: Accumulated depreciation
Net property, plant & equipment
Total assets
2007
Actual
2008
2009
2010
Forecast
2011
2012
$77,131
$62,519
$14,612
$80,953
$68,382
$12,571
$89,250
$72,424
$16,826
$120,000
$97,320
$22,680
$165,600
$133,848
$31,752
$172,000
$138,904
$33,096
$3,726
$6,594
$4,292
$4,133
$7,536
$902
$4,416
$7,458
$4,952
$6,000
$10,032
$6,648
$7,200
$14,144
$10,408
$7,200
$14,379
$11,517
$480
-$39
$652
-$27
$735
-$35
$735
-$50
$687
-$50
$1,112
-$50
$3,773
$223
$4,182
$5,863
$9,671
$10,355
Income taxes
Net income
$1,509
$2,264
$89
$134
$1,673
$2,509
$2,345
$3,518
$3,868
$5,802
$4,142
$6,213
$1.52
$0.09
$1.68
$1.96
$3.24
$3.47
2007
2008
2009
2010
Forecast
2011
2012
$2,536
$10,988
$9,592
$309
$23,425
$2,218
$12,864
$11,072
$324
$26,478
$2,934
$14,671
$11,509
$357
$29,471
$3,960
$19,726
$13,865
$480
$38,031
$5,465
$27,222
$19,069
$662
$52,418
$5,676
$28,274
$19,789
$688
$54,427
$5,306
$792
$4,514
$6,116
$1,174
$4,942
$7,282
$1,633
$5,649
$10,382
$2,179
$8,203
$11,282
$3,233
$8,050
$12,182
$4,354
$7,828
$27,939
$31,420
$35,120
$46,234
$60,467
$62,255
Accounts payable
Notes payable
Accrued expenses
Income taxes payable
Other current liabilities
Total current liabilities
$3,084
$6,620
$563
$151
$478
$10,896
$4,268
$8,873
$591
$9
$502
$14,243
$3,929
$10,132
$652
$167
$554
$15,434
$4,799
$9,476
$876
$235
$744
$16,130
$6,601
$15,338
$1,209
$387
$1,027
$24,561
$6,850
$10,550
$1,256
$414
$1,066
$20,136
$15
$7,980
$9,048
$17,043
$15
$7,980
$9,182
$17,177
$15
$7,980
$11,691
$19,686
$18
$14,877
$15,209
$30,104
$18
$14,877
$21,012
$35,907
$18
$14,877
$27,224
$42,119
$27,939
$31,420
$35,120
$46,234
$60,467
$62,255
1,491,662
1,491,662
1,491,662
1,791,662
1,791,662
1,791,662
$11.43
$11.52
$13.20
$16.80
$20.04
$23.51
Return on equity
Interest coverage ratio (times)
Notes payable / accounts receivable
Notes payable / shareholders' equity
Total liabilities / shareholders' equity
13.3%
8.9
60.2%
38.8%
63.9%
0.8%
1.4
69.0%
51.7%
82.9%
12.7%
6.7
69.1%
51.5%
78.4%
11.7%
9.1
48.0%
31.5%
53.6%
16.2%
15.1
56.3%
42.7%
68.4%
14.8%
10.4
37.3%
25.0%
47.8%
Sales
Cost of goods sold
Gross margin
Research and development
Selling, general and administrative
Operating income
Interest expense
Other income (expenses)
Exhibit 6 (continued)
Balance Sheet ($000s except shares outstanding and book value per share)
Actual
Cash
Accounts receivable
Inventories
Prepaid expenses
Total current assets
Property, plant & equipment at cost
Less: Accumulated depreciation
Net property, plant & equipment
Total assets
$2.28
$2.66
7.1
6.0
14.7%
14.7%
72.5%
71.5%
62.0%
62.5%
90.8%
92.0%
$14,306
$16,914
Invest in the New Product Line
2010
2011
$2.28
$3.55
7.1
6.8
14.7%
18.7%
83.7%
84.1%
71.5%
80.7%
100.3%
113.1%
$16,506
$22,897
Invest in the New Product Line
2010
2011
$1.96
9.1
11.7%
48.0%
31.5%
53.6%
$9,476
$3.24
15.1
16.2%
56.3%
42.7%
68.4%
$15,338