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Investment Analysis Polar Sports

Investment Analysis
Polar Sports, Inc.

Apndice

Investment Analysis Polar Sports

Anexo 1 (Balance En Nivel de Produccin)


2012 Pro Forma Balances y devengados Impuestos Bajo Nivel de
Produccin (en miles de dlares)
Actual
Dic
31,
2011

Feb
2,24
3

Mar
1,43
7

Apr

Ma
y

Jun

Jul

500

500

500

500

500

500

832
2,31
4
5,38
9
2,98
8
8,37
7

630
2,96
6
5,03
3
2,98
8
8,02
1

554
3,63
9
4,69
3
2,98
8
7,68
1

378
4,44
2
5,32
0
2,98
8
8,30
8

239
5,23
4
5,97
3
2,98
8
8,96
1

391
5,90
7
6,79
8
2,98
8
9,78
6

643
6,48
3
7,62
6
2,98
8
10,6
14

2,457

495
1,05
3

495
2,28
9

495
3,37
9

495

-563
100
1,08
5
1,00
0
2,08
5
6,22
2
8,30
8

-875
100
2,00
9

-966
100
3,00
8

495
4,42
1
1,03
8
100
3,97
8

950
2,95
9
6,00
3
8,96
1

950
3,95
8
5,82
7
9,78
6

950
4,92
8
5,68
6
10,6
14

Cuentas por Cobrarb

5,245

Inventariosc

1,227

Activos Circulantes

6,972

Propiedad, planta y equiposd

2,988

Total de activos

9,960

Jan
1,32
7
2,54
1
1,70
6
5,57
4
2,98
8
8,56
2

Accounts payablee

966

495

495

495

495

Notes payable, bank

826

96

Accrued taxesf
Long-term debt, current portion

139
100

104
100

41
100

-171
100

-451
100

Current Liabilities

2,031

Long-term debtg

1,000

Total liabilities

3,031

Shareholders' equity

6,929

Total liabilities and equity

9,960

699
1,00
0
1,69
9
6,86
3
8,56
2

636
1,00
0
1,63
6
6,74
0
8,37
7

424
1,00
0
1,42
4
6,59
7
8,02
1

241
1,00
0
1,24
1
6,44
1
7,68
1

Efectivoa

500

Aug

Sep

5,601
8,558
2,988
11,54
6

4,798
-981
100
4,412
950
5,362
6,184
11,54
6

Oct
500
3,84
3
4,98
9
9,33
2
2,98
8
12,3
20
495
4,99
8
-786
100
4,80
7
950
5,75
7
6,56
3
12,3
20

Nov

Dec

500

500

5,771

6,489

2,455

1,227

8,725

8,216

2,988
11,71
3

2,988
11,20
4

495

495

2,521

1,229

-150
100

2
100

2,966

1,826

950

900

3,916

2,726

7,797
11,71
3

8,478
11,20
4

Investment Analysis Polar Sports

Accrued Taxes
Beg. accrued taxes
Accrual of monthly taxes
Tax payments
End. accrued taxes

139

139
-34
0

104
-63
0

41
-74
-139

-171
-81
-199

-451
-112
0

-563
-113
-199

-875
-90
0

104

41

-171

-451

-563

-875

-966

-966
-73
0
1,03
8

1,038
256
-199

-981
195
0

-786
636
0

-150
351
-199

-981

-786

-150

Investment Analysis Polar Sports

Anexo 2 (Estado de Resultados En Nivel de Produccin)


2012 Pro Forma Estado de Resultados En Nivel de Produccin (en miles
de dlares)
Ma
Ma
Au
Jan Feb
r
Apr
y
Jun
Jul
g
Net sales
702 486 414 378 162 180 378 540
a
COGS
421 292 248 227
97 108 227 324
Gross profit
281 194 166 151
65
72 151 216
Operating expensesb
Storage & Handling Costs
Interest expensee
Interest incomec
Profit (loss) before tax

360
11
11
1
101

360
15
7
2
186

360
19
7
4
217

360
23
7
2
237

Income taxesd

-34

Net income

-66

-63
122

-74
143

-81
156

360
28
8
1
331
112
218

360
33
13
1
333
113
220

Sep
2,970
1,782
1,188

Oct
2,520
1,512
1,008

Nov
5,724
3,434
2,290

Dec
3,546
2,128
1,418

Total
18,000
10,800
7,200

360
38
20
1
265

360
41
30
1
214

360
36
39
1

360
32
43
1

360
16
44
1

360
8
20
1

4,320
0
249
16

754

574

1,870

1,032

2,647

-90
175

-73
141

256

195

636

351

798

498

379

1,234

681

1,849

Assumed cost of goods sold equal to 60% sales due to the savings regarding the maintenance ($480,000) and training
($600,000) costs.
b
Assumed to be same for each month throughout the year.

Investment Analysis Polar Sports

2% annualized rate of return on monthly cash


balances.
d
Negative figures are tax credits from operating losses, and reduced accured taxes shown on balance sheets. The federal
tax rate on all earnings was 34%.
e Interest expense includes the coupon rate (8%) on the long-term date, interest rate of 6% and 11% (exceeding 2m
loans) on the line of credit.

Anexo 3 (Estado de Flujos de Efectivo bajo nivel de produccin)


2012 Pro Forma Estado de Flujos de Efectivo En Nivel de
Produccin ( en miles de dlares )
Jan

Feb

M
ar

-66
25
2,7
04

122
25
1,7
10

14
3
25
20
2

608

65
2

Add: Increase (Decrease) in A/P

479
471

Add: Increase (Decrease) in Accrued


Taxes

-34

-63

Apr

Ma
y

Jun

Jul

Aug

Sep

Oct

Nov

Dec

220
25

-175
25

141
25

498
25

379
25

1,23
4
25

681
25

139

151

252

1,8
14

1,3
86

792

673

576

882

612

312

-90

-73

57

195

636

152

Operating Activities
Net income
Depreciation
Less: Increase (Decrease) in A/R
Less: Increase (Decrease) in
Inventory

0
21
2

-76

21
8
25
17
6

673

80
3

156
25

0
280

0
11
2

1,92
8 718
2,53 1,22
4
8

Investment Analysis Polar Sports

78
1

1,0
09

93
2

1,1
61

1,06
5

1,0
17

916

-25
80
6

-25
1,0
34

1,6
53

1,7
43

93
7

-96

-25
95
7
95
7

-25
1,1
86
1,1
86

-25
1,09
0
1,09
0

-25
1,0
42
1,0
42

826
0

0
0

0
0

0
0

Add: bank note issuance

96

0
0
95
7

0
50
1,2
36

0
0
1,09
0

0
0
1,0
42

Cash flow from financing

826

96

95
7

1,1
86

1,09
0

916

80
6

937

Cash flow from operations

1,6
78

941

Investing Activities
Less: capital expenditures

-25

-25

Cash flow from operating and


investing

1,6
53

Cash available before financing


activities

353

175

2,50 1,36
2
7

-25

-25

378

200

2,47 1,34
7
2

378

200

2,47 1,34
7
2

0
0

0
0

2,47 1,29
7
2
0
50

378

200

1,0
42

378

200

-25

-25

Financing Activities
Less: bank note repayment
Less: debt repayment

Total Cash Flow

827

Exhibit 4 (Inventory Plan)

2012 Inventory Plan Under Level Production (in thousands of


dollars)

0
0
2,47 1,34
7
2

Investment Analysis Polar Sports

Dec,20
11
Sales
Labour Costs
Less:COGS-Material
Cost
Purchases
Ending Inventory

1227

Januar
y

Februar
y

Marc
h

April

May

Augus
t

Septem
ber

Octob
er

Novemb
er

Decemb
er

702
405

486
405

414
405

378
405

162
405

180
405

378
405

540
405

2,970
405

2,520
405

5,724
405

3546
405

421

292

248

227

97

108

227

324

1782

1512

3434

2128

495

495

495

1706

2314

2966

495
363
9

495

495

495

495

495

495

495

495

4442

5234

5907

6483

5601

4989

2455

1227

June

July

Exhibit 5 (Ratios)
Ratios Under level of Production
Januar
y
Debt Ratio

0.25

Februa
ry
0.24

March

0.22

April

0.19

May

June

Leverage
0.34
0.49

July

0.68

Augus
t

Septem
ber

Octob
er

Novemb
er

Decembe
r

0.87

0.87

0.88

0.50

0.32

Investment Analysis Polar Sports

Debt-Equity ratio
Times interest earned
Working Capital-to Total
Assets
Current ratio

0.15
-21.19

0.15
-25.68

0.15
-28.23

0.17
-38.20

0.57

0.57

0.57

0.58

7.97

8.47

11.87

19.49

0.083
0.075

0.059
0.054

0.053
0.048

-30.92%

38.23
%

64.29%

-1.73%

-1.83%

-2.02%

Sales-to-Assets
Sales-to-Working Capital

Net Profit Margin

20.82%

ROA

0.33
0.54
-23.53
-11.27
Liquidity

0.74
-5.41

0.94
20.85

0.93
15.03

0.91
43.59

0.45
54.86

0.25
11.66

0.44

0.39

0.34

0.36

0.37

0.49

0.57

4.90
2.97
Efficiency
0.047
0.019
0.041
0.017
Profitability
129.04
74.03
%
%

2.26

1.92

1.94

1.94

2.94

4.50

0.019
0.017

0.037
0.034

0.049
0.046

0.249
0.234

0.210
0.212

0.500
0.466

160.20
%

12.12%

68.20
%

7.24%

71.33%

-0.93%

7.81%

3.02%

14.30%

3.62%

0.06
0.16
-21.63

0.06
0.17
96.40

0.21
0.15
74.54

0.32
0.27
147.47

0.39
0.14
117.69

0.39
0.22
19.32

0.62

0.61

0.61

0.55

0.52

0.52

0.53

-11.44
-6.14
Efficiency

-5.68

-5.39

13.77

4.95

3.72

3.69

0.054
0.024
0.049
0.023
Profitability
119.78
71.49
59.60%
%
%

0.061
0.057

0.080
0.071

0.372
0.331

0.265
0.236

0.528
0.469

131.71
%

9.34%

56.32
%

5.41%

42.72%

-1.56%

10.51%

3.47%

14.90%

2.86%

0.51

-3.04%

-2.42%

25.18
%
1.42%

Ratios Under Seasonal Production*

Debt Ratio
Debt-Equity ratio
Times interest earned
Working Capital-to Total
Assets
Current ratio

0.19
0.15
-26.49

0.16
0.15
-28.16

0.13
0.16
-38.17

0.59

0.59

0.60

0.61

12.41

17.49

95.28

-26.13

0.086
0.078

0.062
0.057

0.056
0.051

0.029
0.026

-31.15%

37.71
%

-1.84%

-1.94%

-2.10%

25.51
%
2.04%

Sales-to-Assets
Sales-to-Working Capital

Net Profit Margin


ROA

Leverage
0.11
0.07
0.16
0.16
-37.34
-29.50
Liquidity

0.21
0.15
-23.15

21.35%

0.61

-3.19%

-2.92%

Investment Analysis Polar Sports