Tire City, Inc.

Exhibit 1 Financial Statements

For years ending 12/31

INCOME STATEMENT
Net sales
Cost of sales
Gross profit
SG&A expenses
Depreciation (on existing PPE)
Depreciation (on new warehouse)
Operating Income (EBIT)
Interest expense (on existing loan)
Interest expense (on new loan)
Pre-tax income
Income taxes
Net Income
Tax rate

STATEMENT OF RETAINED EARNINGS

Beginning balance
Net income
Dividends
Ending balance

BALANCE SHEET
Cash
Excess Cash
Accounts receivable
Inventories
Total current assets
Gross plant & equipment
Net plant & equipment
Total assets
Current maturities of LTD
Accounts payable
Accrued expenses
Total current liabilities
Long-term debt
Long-term debt (new bank loan)
Common stock
Retained eamings
Total liabilities and equity
Total Assets EXCEPT asset plug
Liab. & Equity EXCEPT liab plug
Financing plug required

Atual
1994

1993
$

16,230
9,430
6,800
5,195
160

20,355
11,898
8,457
6,352
180

Projections
1996
1997

1995
$

23,505
13,612
9,893
7,471
213

28,206
16,403
11,803
8,932
213

1,445
119

1,925
106

2,209
94

1,326
546
780 $
41%

1,819
822
997 $
45%

2,115
925
1,190 $
44%

2,658
63
37
2,559
1,110
1,449 $
43%

3,880
1,449
290
5,039

2,930
1,190
240
3,880

2,133
997
200
2,930

1,508
780
155
2,133

508

609

706

2,545
1,630
4,683
3,232
1,335
1,897
6,580

3,095
1,838
5,542
3,795
1,515
2,280
7,822

3,652
2,190
6,548
4,163
1,728
2,435
8,983

858
4,365
1,625
6,848
6,163
1,941
4,222
11,070
125
1,792
1,986
3,903
625
368
1,135
5,039
11,070

125
1,042
1,145
2,312
1,000
1,135
2,133
6,580

125
1,325
1,432
2,882
875
1,135
2,930
7,822

125
1,440
1,653
3,218
750
1,135
3,880
8,983

11,070
10,701
368

33,847
19,684
14,163
10,718
213
120
3,232
50
103
3,079
1,335
1,744
43%

5,039
1,744
349
6,433

1,030
5,238
3,203
9,470
6,563
2,274
4,289
13,759
125
2,150
2,383
4,658
500
1,033
1,135
6,433
13,759
13,759
12,726
1,033

Assumptions
For years ending 12/31
COMMON SIZE ANALYSIS (%)
Net sales
Cost of sales
Gross profit
SG&A expense
32% of Sales
Depreciation
the same as 1995
5% of cost of new warehouseDepreciation (on new warehous
Operating income (EBIT)
Interest expense (STD)
10% on LTD
Interest expense (LTD)
10% on LTD
Pre-tax income
Tax allowance
43% Tax rate
Net income
Dividend Payout Ratio
20% Growth rate
58% of Sales

20% of Net income

3% of Sales
ASSET PLUG
15% of Sales
9% of Sales for 1997

ACTIVITY RATES
Sales per day (365 day/yr)
Cost of sales per day

ACTIVITY RATIOS
Cash on hand % of sales
Account receivable % of sales
Inventory % of sales
Account payable % of sales
Accrued expense % of sales

$
$

1993

1994

100.00%
58.10%
41.90%
32.01%
0.99%
0.00%
8.90%
0.73%
0.00%
8.17%
3.36%
4.81%
19.87%

100.00%
58.45%
41.55%
31.21%
0.88%
0.00%
9.46%
0.52%
0.00%
8.94%
4.04%
4.90%
20.06%

44.47
25.84

3.13%
15.68%
10.04%
6.42%
7.05%

$
$

55.77
32.60

2.99%
15.21%
9.03%
6.51%
7.04%

add. $2,000 in 1996, $400 in 1997

LIQUIDITY RATIOS
Current ratio
Quick ratio
Cash ratio

2.03
1.32
0.22

1.92
1.29
0.21

0.50
0.31
12.14

0.48
0.22
18.16

41.90%
8.90%
4.81%
11.85%
23.87%

41.55%
9.46%
4.90%
12.75%
24.53%

6% of Sales
7% of Sales

LIAB. PLUG

LEVERAGE RATIOS
Total debt to assets
Long term debt to equity
Time interest earned

PROFITABILITY RATIOS
Gross profit margin
Operating profit margin
Net profit margin
Return on assets
Return on equity

1995

1996

1997

100.00%
57.91%
42.09%
31.78%
0.91%
0.00%
9.40%
0.40%
0.00%
9.00%
3.94%
5.06%
20.17%

100.00%
58.16%
41.84%
31.67%
0.76%
0.00%
9.42%
0.22%
0.13%
9.07%
3.93%
5.14%
20.03%

100.00%
58.16%
41.84%
31.67%
0.63%
0.35%
9.55%
0.15%
0.31%
9.10%
3.94%
5.15%
20.03%

$
$

64.40
37.29

3.00%
15.54%
9.32%
6.13%
7.03%

$
$

77.28
44.94

3.04%
15.47%
5.76%
6.35%
7.04%

$
$

92.73
53.93

3.04%
15.47%
9.46%
6.35%
7.04%

2.03
1.35
0.22

1.75
1.34
0.22

2.03
1.35
0.22

0.44
0.15
23.50

0.44
0.16
26.76

0.45
0.20
21.08

42.09%
9.40%
5.06%
13.25%
23.73%

41.84%
9.42%
5.14%
13.09%
23.47%

41.84%
9.55%
5.15%
12.67%
23.04%