Manufacturing 1cqhd8sj1 - 416110

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This workbook contains a two-part valuation of a manufacturing "Company" with two operating units and an corporate
The Company-level Rollup includes a Discounted Cash Flow Valuation of the business. The tabs are color-coded as follow
Company Rollup Business Unit #1

Income Statement & DCF Business Drivers w/ assumptions
Balance Sheet P&L
Statement of Cash Flows Balance Sheet
Financial Ratios & Analysis Statement of Cash Flows
Debt Schedule
The "Comparables" tab contains financial information about a "peer-group" of 3 public companies, whose Price-to-Earn
Comparables
Peer companies 1, 2, & 3
Similar stats for Company
Finally, the Presentation tab contains a brief introduction to the methodology, calculations of the two Valuations, and su
Select the "Print Preview" option in the Presentation tab to see a slideshow version:
Presentation
Introduction & methodology
Cost of Capital calculation
Valuations (DCF & EV/EBITDA)
Summary graphs
ct scott@ExcelModels.com to unlock
h two operating units and an corporate overhead cost center
ness. The tabs are color-coded as follows:
Business Unit #2 Overhead Unit

Business Drivers w/ assumptions P&L
P&L Balance Sheet
Balance Sheet Statement of Cash Flows
Statement of Cash Flows
public companies, whose Price-to-Earnings (EV/EBITDA) ratio determines an alternate Valuation:
lculations of the two Valuations, and summary exhibits
Copyright 2016, Scott Beber, ExcelModels.com

Valuation A
Project: Valuation
by Scott Beber
TABLE OF CONTENTS `
Background Exhibits:
Valuation Approaches Four methods to calculate Market Value………………………………….1
Comparison of Methodologies Which methodology is most appropriate?................................................. 2
Discounted Cash Flow Valuation How to determine a company's NPV………………………………...… 3
Selected Approach Two methodologies for Company……………….…………………... 4
Valuation
Weighted Average Cost of Capital Company's WACC…………………………………...…………………. 5
Market Comparables Company's Market Comps Valuation………………………………… 6
Discounted Cash Flows Company's DCF Valuation……………………………………………… 7
Results & Illustrations

Conclusion Company is Undervalued by the Market……………………………… 8
Summary of Findings Composition of Enterprise Values…………..…………………………. 9
Operating Leverage…………………………………………………… 10
Operating Performance…………………………………………………. 11
2012 Percent Returns………..…….……………………………………. 12
Net Working Capital..………..…….…………………………………… 13
1
Valuation Approaches Comparison o
Four Approachs to measuring Market Value
Approach Methodology Formula: Data Sources: Used Primarily By:
Income Discounted Cash Flow Period cash flows Company financials, Companies with stable
Ʃ (1+WACC) ^ Period Management estimates or estimable growth
Market Market capitalization $ Share Price x WSJ, Yahoo! Finance Public companies
# Shares outstanding
Earnings multiple of Average of peers' P/E ratios WSJ, Yahoo! Finance Privately-held cos.
comparable "peer group" x Company Earnings and Company financials Individual business units
Asset Liquidation value, Market prices of Auctions, Indexes, Companies in distress

Acquisition value Ʃ individual assets Historical transactions Sum of parts > whole
Other Option pricing models Various WSJ, Yahoo! Finance Companies whose assets
Economic Value Added Company financials, are valued like options
Contingent claim models Management estimates
2
Comparison of Methodologies Discounted C
Which is most appropriate?
Methodology Advantages Drawbacks

Discounted Cash Flow • Most theoretically correct • Ignores market moods and perceptions
• Takes growth and change into account • Can be long and arduous to calculate
• Entails deep understanding of company • Requires deep understanding of company
• Fundamentals-driven • Requires many estimates (WACC, beta, sales)
Market capitalization • Easily to obtain; "quick & dirty" • Does not capture true intrinsic value
• Easy to relate to • Markets can be inefficient and slow to equalize
• Requires fewer assumptions • Trading can be emotional, momentum-based
Earnings multiple of • In reality, the most commonly-used method • Precise comparables rarely exist
comparable peer group • Easily to obtain; "quick & dirty" • Does not account for growth, strategy, change
• Market has final say in what something's worth • Easy to manipulate and misuse
Liquidation value, • Accurate in short term • Does not account for growth, strategy, change
Acquisition value • Easy to relate to • Whole may be more valuable than sum of parts
• Easy to support with data • May leave money on the table in short sales
Option models • Allow for management to quickly assimilate, • Can easily lead to overvaluation when options
react to, and learn from real-time data argument does not hold up
• Some assets' values derive entirely from their • Bad for long-term options on non-traded assets
option-like characteristics (e.g. biotech patent)
3
Discounted Cash Flow Valuation Selected Approa
How to determine a company's Net Present Value
In a DCF valuation, a company's value (V) is deemed to be the present value of all future cash flows (CF)
Cash flows are 'discounted' by the company's Weighted Average Cost of Capital (WACC) each year (t) out they occur
A terminal year (n+1) and a cash flow growth rate (g) are chosen, to represent the company's cash flow in perpetuity
n
CF in period t … CF / (WACC-g)
V= Ʃ (1+WACC) ^ t + (1+WACC) ^ n+1
t=0
Factors that affect V:

The higher a company's cost of capital, the lower the present value of a period's cash flows
Given constant cash flows, the further out the period, the less its cash flow contributes to V
The higher the terminal growth rate, the higher perpetuity component will be. However…
… The termianl growth rate cannot exceed the growth rate of the economy as a whole
4
Selected Approach Company We
Two methodologies chosen:
Methodology Rationale Requirements

Discounted Cash Flow • Appropriate for Company's steady growth • Income Statements and Balance Sheets of all
and estimability of future sales & earnings Business Units plus Corporate Overhead unit
• Ideal for "sum of the parts" valuation involving • Historical "Actuals" data from FY 2008-2012
separate valuations of 5 business units, a • Business drivers to generate forecasts for
corporate overhead unit, and an additive rollup FY 2013-2017
• Availability of data and deep understanding • Terminal year values and terminal growth %
of company input, output, and dynamics • A single corporate-wide Debt Schedule
• Estimates of Beta and Costs of Capital
Earnings multiple of • Provides powerful check on DCF method • Peer groups for each Business Unit
comparable peer group • Greater accuracy than typical P/E approach • Market cap, debt, cash, and EBITDA of each
by using different peer groups for each B.U. company in peer groups
• Includes market sentiment as component of • EV/EBITDA multiples of peer groups to apply
end-product Valuation to Company's Business Units' EBITDA
• Company EBITDA by Business Unit
Market Capitalization • Basis of comparison for both Valuations • Determine market Over/Under Valuation
5
Company Weighted Average Cost of Capital Company Marke
Cost of Equity (using CAPM) Cost of Debt (from Company financials)
Company Beta 3.35 $ million: 2011 2012 2013 (F) 3 yr avg
Risk Free Rate Principal Balance 324,620 228,493 235,204 262,772
10-year Treasury-Bond 2.00% Total Interest Expense 23,382 20,969 20,214 21,521
Equity Risk Premium * 3.99% Average annual cost 7.20% 9.18% 8.59% 8.19%
Company Cost of Equity 15.37% Company Cost of Debt 8.19%
Weighted Average Cost of Capital

$ mil Pct. Cost
Market Value of Equity 500.0 69% 15.37%
Value of Debt, 2012 228.5 31% 8.19%
728.5 100% 13.12%
Weighted Avg Cost of Capital (WACC) 13.12%
Estimates of Equity Risk Premium (ERP) for the United States in 2012: (Aswath Damodaran- http://pages.stern.nyu.edu/~adamodar/)
Approach ERP Source
Survey: CFOs 3.07% Campbell and Harvey (2010); Avg. estimate. Median = 2.7%
Survey: Global Fund Managers 4.08% Merrill Lynch (Jan., 2012)
Historical - US 4.10% Geometric avg - Stocks over T.Bonds: 1928-2011
Average Implied premium 3.99% Avg. of implied equity risk premium: 1960-2011 ← Selected estimate
Implied premium adj. for T.Bond rate and term 3.50% Using regression of implied premium on T.Bond rate
6
Company Market Comparables Valuation Company DC
Public Comparable sym Multiple Calculation Company Bus. Units Apply multiple in $ mil…
Ent Val ($ mil) EBITDA (ttm) EV/EBITDA Operations EBITDA Ent Val
Comp1 COMP1 $462.7 $80.3 5.76 Biz1 $45,621 $337.4
Comp2 COMP2 $4,740.0 $608.8 7.79 Biz2 $1,429 $10.6
Comp3 COMP3 $122.3 $30.9 3.96
Weighted Avg. Multiple: 7.40 Total Operations $47,050 $348.0
Corporate Overhead ($30,313) $0.0
Enterprise Value is equal to: Enterprise Value Market Comp Enterprise Value: $348.0
+ Value of Equity Discounted Cash Flow Valuation: $24.5
+ Value of Debt Debt (3-yr avg) Company financials: $262.8
- Cash Cash Yahoo! Finance: $40.7
hence…
Equity Value is equal to: Equity Value Market Comparables model: $125.9
Enterprise Value - Debt + Cash Discounted Cash Flow model: ($197.6)
Note: Market data from Yahoo! Finance
7
Company DCF Valuation Conclusion
By Business Unit
Discounted Cash Flows ($ mil):
Forecasted Fiscal Years: Terminal Years
Business Unit WACC 2012* 2013 2014 2015 2016 2017 Stage 1 Stage 2 Valuation
Operations
Biz1 13.1% 58.3 (33.7) 45.1 31.8 35.7 11.5 0.0 30.2 178.9 0
Biz2 13.1% 4.6 (8.3) 3.1 0.2 0.4 (0.4) 0.0 (1.0) (1.4) 0
Total, Operations 62.9 (41.9) 48.2 32.1 36.1 11.1 0.0 29.2 177.5 ###
Corporate Overhead 13.1% (3.6) (21.1) (21.0) (20.5) (21.7) (19.1) 0.0 (46.1) (153.0)
###
Total, Company 59.3 (63.0) 27.2 11.6 14.5 (8.1) 0.0 (16.9) $24.5
0 ###
*Forecast of remainder of fiscal year

0
8
Conclusion Summary of F
Company is Undervalued by the Market
Company's Equity Value ($ mil), per:

Market Comparables model $125.9
Discounted Cash Flow model ($197.6)
Book (Shareholders Equity) $213.7
Company's Market Value of Common Equity:

Share Price $18.75
Shares Outstanding (mil) 26.67
Market Capitalization ($ mil) $500.0
Common Stock Over / (Under) Valuation:
Overall Dollars
($ mil) per share Δ
Market Comparables model $374 $14.03 297%
Discounted Cash Flow model $698 $26.16 -353%
Book (Shareholders Equity) $286 $10.73 134%
9
Summary of Findings (pt. 1) Summary of
Business Unit contribution to Enterprise Value ($ mil)
Market Compara... Discounted Cash ...

$
Market CoDiscounted Cash Flow
Biz1 $0
$337$11 $179 97% $337 730% $179
Biz2 $11 ($1) 3% $11 (6%) ($1)
$
Corp. Overhead $0 ($153) 0% $0 (625%) ($153)
$
$337
$
$179
$0 ($1)
($153)
($
($
Enterprise Value ($ mil): $348.0 $24.5

10
Business Unit Operating Leverage
8.0x
15%
7.0x 6.9x
0%
6.0x 2011 2012 2013 2008
Biz1 2.5x 5.3x1.7x 1.8x
Biz2 5.3x 6.9x 4.3x
(15%)
5.0x
4.3x
4.0x Biz1 (30%)
Biz2
3.0x
2.5x $20
2.0x 1.7x 1.8x

$0
2008
1.0x ($20)
($40)
0.0x
2011 2012 2013
($60)
Note: Operating Leverage measures the effect on EBIT of a change in Revenue
11
Summary of Findings (pt. 3) Summary of F
Business Unit performance (historical & forecasted)
Operating (EBITDA) Margin

2008 2009 2010 2011 2012 2013 (F) 2014 (F) 2015 (F) 2016 (F) 2017 (F) Biz
100.0%
Biz1 -5% -14% -7% 3% 5% 4% 5% 5% 5% 4%
15%
Biz2 1% 4% 5% 2% 1% 2% 2% 2% 2% 2%
50.0%
0% Biz1
2008 2009 2010 2011 2012 2013 (F) 2014 (F) 2015 (F) 2016 (F) 2017 (F) Biz2
7.9%
0.0%
(15%)
(50.0%)
(30%)
(100.0%)
Economic Profit ($ mil)
$20
(150.0%)
$0 Biz1 (49) (57) (39) (19) (6) (14) (13) (16) (23) (38)
2008 2009 2010 2011 2012 2013 (F) 2014 (F) 2015 (F) 2016 (F) 2017 (F) Biz1
Biz2 (0) 6 2 (1) (2) (1) (1) (2) (2) (2) Biz2 (200.0%)
($20) Free
($40)
|
($60)
Note: Economic Profit measures the dollar amount returned in excess of the Required Return (per the Cost of Capital)
12
Business Unit return, 2012
Biz1 Biz2 Corporate Overhead
100.0%
69.2% 600,000
EBITDA FCF N.I. Mkt CompDCF
50.0%
Biz1 45.6 26.6 12.7 337.4 178.9
25.5% 500,000
Biz2 19.9% 1.4 2.1 (0.9) 10.6
14.9% (1.4) 20% 20%
7.9% 7.1%
Corporate (30.3) (1.7)
3.8% (30.3) 0.0 (153.0)
1%
0.0%
400,000
(9.0%)
(50.0%) 300,000
Return on Mkt Comp Valn Return on DCF Valn

Free Cash Fl Net IncomFree Cash Net IncomEBITDA 200,000
(100.0%)
Biz1 7.9% 3.8% 14.9% 7.1% 25.5% (104.4%)
Biz2 19.9% (9.0%) (153.5%) 69.2% (104.4%)
100,000
(150.0%)
Corporate #DIV/0! #DIV/0! 1% 20% 20%
(153.5%)
0
2010
(200.0%)
Free Cash Flow Net Income Free Cash Flow Net Income EBITDA (100,000)
| Return on Market Comps Value

| | Return on Discounted Cash Flow Value
|
Note: Return on Enterprise Value (i.e. Return on Market Value) is an imperfect measure, since it lacks a hard baseline, such as invested capital
Growth opportunities are already priced into market value, making RoEV somewhat subjective. Nevertheless, it is useful for BU comparisons.
13
Summary of Findings (pt. 5)
Net Working Capital- Historical & Forecasted ($000's)
Current Assets less Current Liabilities

600,000 Fiscal Years:
2010 2011 2012 2013 2014 2013 (F) 2014 (F) 2015 (F) 2016 (F) 2017 (F)
Biz1 39,502 7,810 (4,615) 13,455 2,314 58,230 91,318 127,208 165,603 188,050
500,000
Biz2 (1,736) 2,257 8,667 5,550 9,269 12,249 13,858 15,588 17,415 19,242
Total Mfg
400,000 37,767 10,066 4,052 19,005 11,583 70,479 105,176 142,795 183,018 207,292
Biz1
300,000 Biz2
COR
200,000
COR 522,362 489,581 444,184 416,700 319,080 196,210 166,491 135,135 98,387 61,639
100,000
Total 560,129 499,647 448,236 435,706 330,664 266,689 271,667 277,930 281,404 268,931
0
2010 2011 2012 2013 2014 2013 (F) 2014 (F) 2015 (F) 2016 (F) 2017 (F)
(100,000)
Current Assets: • Cash Current Liabilities: • Accounts payable

• Accounts receivable • Other accrued current
• Inventory • Deferred revenue
• Assets held for sale
• Other current
1 2 3 4 5 6 7 8 9 10
Valuation Return
Market Trailing Price / EV

Name Ticker Cap EV P/E Fwd P/E Sales /EBITDA Beta: ROA ROE
million million
ttm Dec2013 ttm ttm ttm ttm
Comp1 COMP1 444 463 20.6 8.32 0.75 5.76 2.58 5.3% 6.9%
Comp2 COMP2 2,000 4,740 11.74 7.3 0.61 7.78 2.28 4.3% 8.9%
Comp3 COMP3 246 122 15.5 9.72 0.4 3.96 1.72 4.0% 8.0%
Company CO 500 600 8.75 5.1 0.25 4.45 3.35 4.6% 10.6%
11 12 13 14 15 16 17 18 19
Income Statement Balance Sheet Cash Flow St.
N.I. to Diluted Total Total Current Levered

Rev EBITDA Common EPS Cash Debt Ratio Oper. CF FCF
million million million million million million million
ttm ttm ttm ttm ttm ttm
616 80 22 1.01 273 275 4.69 40 (53)
3,370 609 165 2.13 305 2,980 2.15 181 (890)
634 31 16 1.33 128 0 2.6 73 59
1,290 292 71 1.37 41 420 1.19 16 (32)
Consolidated Company View
Historical & Projected P&L ($000's) Fiscal Years:
chk 2010 2011 2012 2013 2014
Periods out ► 0.3
Revenue 0 611,456 374,046 242,936 688,041 995,761
Cost of revenues 0 602,347 386,821 230,243 641,732 915,310
Gross margin $ 0 9,110 (12,775) 12,693 46,309 80,452
Gross margin % 0 1.5% -3.4% 5.2% 6.7% 8.1%
Operating expense (G&A) 0 55,996 44,240 51,818 53,928 63,715
EBITDA 0 (46,887) (57,015) (39,125) (7,619) 16,737
Impair/Spec & (Gain) eqp. sales 0 2,302 55,667 (11,870) 0 0
Dep'n & amort. 0 11,935 13,015 13,123 12,622 13,504
EBIT 0 (61,124) (125,697) (40,378) (20,241) 3,233
Interest expense/(benefit) 0 38,230 40,686 38,966 23,382 20,969
Earnings before taxes 0 (99,354) (166,383) (79,344) (43,623) (17,735)
Income taxes 0 (28,167) (36,429) (24,799) (16,907) (3,520)
Earnings before unconsol. affil. 0 (71,187) (129,954) (54,545) (26,716) (14,215)
Earnings from unconsol. affil. 0 872 (565) (561) (592) (342)
Earnings, Internal 0 (70,315) (130,519) (55,106) (27,308) (14,557)
Earnings attrib to non-contr ints 0 3,182 1,472 (4,054) (2,101) (3,993)
Net earnings 0 (67,133) (129,047) (59,160) (29,409) (18,551)
NOPAT 0 (32,957) (89,268) (15,579) (3,335) 6,753
Capital expense (net) 0 (26,491) (11,807) (12,359) (22,455) (21,456)
Working capital delta 0 0 14,336 253 (5,934) 28,281
Free cash flow (47,513) (73,724) (14,562) (19,101) 27,082
Discounted FCF 0 0 0 0 59,251
Click 's for individual BU's

WACC
Discounting Factors 13.1%
←
Terminal Value Stage:
1-# Years 1-growth % 2-growth%
Terminal Growth 10 2.7% 1.3%
←
Forecasted Term Stg. 1 Term. Stg. 2 Total Comps
Valuation (Discounted FCF) 41,408 0 (16,914) 24,494 347,991
now thru 2017 1 to 10 yrs ∞ now thru ∞
←
Fully-diluted shares outst (000) 26,669
F/D 2012 earnings per share (0.70)
Deliveries 7,272 3,746 2,487 9,475 13,346

←
Quarters, FY2013 Fiscal Years:
Nov30 Feb28 May31 Aug31 2015 2016 2017 2018 2019
0.5 0.8 1.0 1.3 1.3 2.3 3.3 4.3 5.3
248,174 248,174 248,174 248,174 992,698 1,135,356 1,175,758 1,146,099 821,769
228,765 228,765 228,765 228,765 915,059 1,043,428 1,079,509 1,051,713 752,092
19,410 19,410 19,410 19,410 77,639 91,928 96,249 94,386 69,677
7.8% 7.8% 7.8% 7.8% 7.8% 8.1% 8.2% 8.2% 8.5%
18,298 18,298 18,298 18,298 73,194 79,638 83,214 83,674 79,139
1,111 1,111 1,111 1,111 4,445 12,290 13,035 10,713 (9,462)
0 0 0 0 0 0 0 0 0
5,688 5,688 5,688 5,688 14,500 14,750 14,750 14,750 14,750
(4,576) (4,576) (4,576) (4,576) (10,055) (2,460) (1,715) (4,037) (24,212)
5,453 5,453 5,453 5,453 20,214 20,250 20,300 19,681 19,681
(10,029) (10,029) (10,029) (10,029) (30,269) (22,710) (22,015) (23,719) (43,894)
(4,030) (4,030) (4,030) (4,030) (12,259) (9,210) (8,842) (9,550) (17,620)
(5,999) (5,999) (5,999) (5,999) (18,010) (13,500) (13,173) (14,169) (26,274)
63 63 63 63 250 500 500 500 500
(5,937) (5,937) (5,937) (5,937) (17,760) (13,000) (12,673) (13,669) (25,774)
(746) (746) (746) (746) (2,984) (4,591) (4,942) (5,088) (3,652)
(6,683) (6,683) (6,683) (6,683) (20,744) (17,592) (17,615) (18,757) (29,426)
(546) (546) (546) (546) 2,204 6,749 7,127 5,512 (6,593)
(3,750) (3,750) (3,750) (3,750) (16,500) (17,500) (17,500) (16,500) (16,500)
(1,248) 0 0 0 (32,780) 11,908 3,279 7,067 1,516
0 0 0 0 (32,576) 15,907 7,656 10,829 (6,827)
0 0 0 0 (63,006) 27,190 11,569 14,467 (8,062)
Δ
1320.7%
3,133 3,133 3,133 3,133 12,534 13,971 14,175 13,724 9,011

Terminal Years:
6.3 7.3 8.3 9.3 10.3 11.3 12.3 13.3 14.3 15.3
0 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

0 0 0 0 0 0 0 0 0 0
Historical & Projected Balance Sheet ($000's) Fiscal Years:
chk 2010 2011 2012 2013 2014
ASSETS
Cash & cash equivalents 0 466,425 420,279 369,121 350,657 273,896
Restricted cash 0 1,231 1,083 2,525 1,973 1,973
Accounts receivable 0 61,116 28,296 18,712 44,157 57,188
Inventory 0 97,759 41,113 42,866 113,136 118,804
Assets held for sale 0 0 0 0 0 0
Invest. in direct finance leases 0 0 0 0 0 0
Equipment on operating leases 0 0 0 0 0 0
Plant & equipment 0 136,506 127,974 132,614 163,521 177,329
Accumulated depreciation 0 0 0 0 0 0
Net P&E 0 136,506 127,974 132,614 163,521 177,329
Goodwill 0 0 0 0 0 0
Intangibles & Other Assets 0 99,061 96,902 90,679 82,613 75,007
TOTAL ASSETS 0 862,098 715,647 656,517 756,057 704,197
LIABILITIES
Revolving notes 0 0 0 2,630 16,858 (7,115)
A/P and other accrued 0 146,604 71,543 64,040 147,448 187,945
Losses in ex. of inv. of de-con sub 0 15,313 15,313 0 0 0
Deferred revenue 0 17,628 15,400 9,102 7,410 6,286
Deferred income taxes 0 0 0 0 0 0
Notes payable 0 306,750 306,750 308,166 307,762 235,608
Other liabilities 0 0 0 0 0 0
TOTAL LIABILITIES 0 486,295 409,006 383,937 479,478 422,724
EQUITY
Company
Preferred stock 0 0 0 0 0 0
Common stock 0 17 17 22 26 26
Additional paid-in capital 0 99,677 117,060 172,404 240,906 247,298
Retained earnings 0 199,767 113,116 20,961 (45,645) (51,137)
Accum. other comprehensive loss 0 0 0 0 0 0
Total Equity Company 0 299,461 230,193 193,387 195,286 196,186
Noncontrolling interest 0 8,618 8,724 11,469 13,570 17,563
TOTAL EQUITY 0 308,079 238,917 204,856 208,856 213,749
TOTAL LIABILITIES + EQUITY 0 794,374 647,923 588,793 688,333 636,473
Net Working Capital 0 560,129 499,647 448,236 435,706 330,664
Check 0 67,724 67,724 67,724 67,724 67,724

Nov30 Feb28 May31 Aug31 2015 2016 2017 2018 2019
273,884 273,873 273,862 273,851 175,894 192,779 202,321 212,862 201,905

1,973 1,973 1,973 1,973 1,973 1,973 1,973 1,973 1,973
51,276 51,276 51,276 51,276 73,606 84,146 87,102 83,450 80,476
106,503 106,503 106,503 106,503 141,161 149,414 154,559 148,000 142,836
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
177,329 177,329 177,329 177,329 181,172 185,280 189,257 189,257 189,257
0 0 0 0 0 0 0 0 0
177,329 177,329 177,329 177,329 181,172 185,280 189,257 189,257 189,257
0 0 0 0 0 0 0 0 0
75,007 75,007 75,007 75,007 71,581 68,300 64,867 64,867 64,867
685,973 685,962 685,950 685,939 645,387 681,892 700,079 700,409 681,314
0 0 0 0 0 0 0 0 0
168,485 168,485 168,485 168,485 188,537 214,911 222,312 219,167 212,545
0 0 0 0 0 0 0 0 0
6,286 6,286 6,286 6,286 7,015 8,061 8,608 8,608 8,608
0 0 0 0 0 0 0 0 0
235,608 235,608 235,608 235,608 235,204 235,000 235,000 235,000 235,000
0 0 0 0 0 0 0 0 0
410,379 410,379 410,379 410,379 430,756 457,972 465,919 462,775 456,154
0 0 0 0 0 0 0 0 0
26 26 26 26 26 26 26 26 26
247,298 247,298 247,298 247,298 253,690 260,082 266,474 266,474 266,474
(58,264) (58,275) (58,286) (58,298) (56,699) (58,351) (58,901) (56,179) (68,607)
0 0 0 0 0 0 0 0 0
189,060 189,049 189,037 189,026 197,016 201,757 207,598 210,321 197,892
17,563 17,563 17,563 17,563 20,620 24,746 29,709 29,709 29,709
206,623 206,611 206,600 206,589 217,636 226,503 237,308 240,030 227,602
617,001 616,990 616,979 616,968 648,392 684,475 703,227 702,805 683,755
266,689 271,667 277,930 281,404 268,931
68,972 68,972 68,972 68,972 (3,005) (2,583) (3,148) (2,397) (2,441)

Historical & Projected Statement of Cash Flows ($000's) Fiscal Years:
chk 2010 2011 2012 2013
OPERATING ACTIVITIES
Net Earnings 0 (67,133) (129,047) (59,160) (29,409)
Deferred income taxes 0 0 0 0 0
Depreciation & amortization 0 11,935 13,015 13,123 12,622
(Gain)/Loss on sale of equipment 0 0 0 0 0
Impairment & special charges 0 2,302 55,667 (11,870) 0
Other operating items 0 (3,182) (1,472) 4,054 2,101
Change in Assets:
Accounts receivable 0 0 32,820 9,584 (25,446)
Inventories 0 0 56,646 (1,753) (70,269)
Assets held for sale 0 0 0 0 0
Intangibles & Other Assets 0 0 2,159 6,223 8,066
Change in Liabilities
A/P and other accrued 0 0 (75,061) (7,503) 83,408
Deferred revenue 0 0 (2,228) (6,298) (1,692)
NET CASH +/(-) OPERATING ACTIVITIES 0 (56,078) (47,501) (53,600) (20,620)
INVESTING ACTIVITIES
Use of (investment in) restricted cash 0 0 148 (1,442) 552
Proceeds from sale of equipment 0 0 0 0 0
Investment in and advances to unconsol sub. 0 858 0 (927) (479)
Acquisition 0 (91,166) 0 0 0
Other investing items 0 0 0 0 0
Capital expenditures 0 (26,491) (11,807) (12,359) (22,455)
Capital expenditures 0 0 0 0 0
NET CASH +/(-) INVESTING ACTIVITIES 0 (116,799) (11,659) (14,728) (22,382)
FINANCING ACTIVITIES
Change in Revolver 0 0 0 2,630 14,228
Proceeds (Repayment) of borrowings 0 0 0 1,416 (404)
Repayment of Subdebt 0 0 0 0 0
Dividends 0 0 0 0 0
Investment by joint venture partner 0 0 0 0 0
Stock options & restr. stock awds exercised 0 0 0 0 0
Equity Re-purchase/Retirement 0 0 0 0 0
Equity Issuance Proceeds 0 0 0 0 0
Excess Tax Benefit of stock options exercised 0 0 0 0 0
Other financing items 0 0 0 0 0
NET CASH +/(-) FINANCING ACTIVITIES 0 0 0 4,046 13,824
Effect of exchange rate changes 0 0 0 0 0

INCREASE (DECREASE) IN CASH & EQUIV. 0 (172,877) (59,160) (64,282) (29,178)
Cash & Equivalents at Beginning of Period 0 627,367 454,490 395,330 331,048
CASH & EQUIVALENTS AT END OF PERIOD 0 454,490 395,330 331,048 301,871
Check 0 11,935 24,949 38,073 48,786

s: Quarters, FY2013 Fiscal Years:
2014 Nov30 Feb28 May31 Aug31 2015 2016 2017 2018
(18,551) (6,683) (6,683) (6,683) (6,683) (20,744) (17,592) (17,615) (18,757)

0 0 0 0 0 0 0 0 0
13,504 5,688 5,688 5,688 5,688 14,500 14,750 14,750 14,750
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
3,993 746 746 746 746 2,984 4,591 4,942 5,088
(13,030) 5,912 0 0 0 (22,330) (10,540) (2,956) 3,652

(5,668) 12,301 0 0 0 (34,658) (8,253) (5,145) 6,560
0 0 0 0 0 0 0 0 0
7,606 0 0 0 0 3,427 3,281 3,433 0
40,498 (19,460) 0 0 0 20,052 26,374 7,400 (3,145)

(1,124) 0 0 0 0 729 1,046 547 0
27,228 (1,497) (249) (249) (249) (36,040) 13,657 5,356 8,148
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
(100) 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
(21,456) (3,750) (3,750) (3,750) (3,750) (16,500) (17,500) (17,500) (16,500)
0 0 0 0 0 0 0 0 0
(21,556) (3,750) (3,750) (3,750) (3,750) (16,500) (17,500) (17,500) (16,500)
(23,973) 0 0 0 0 7,115 0 0 0
(72,154) 0 0 0 0 (404) (204) 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
(96,127) 0 0 0 0 6,711 (204) 0 0
0 0 0 0 0 0 0 0 0
(90,456) (5,247) (3,999) (3,999) (3,999) (45,829) (4,047) (12,144) (8,351)
301,871 211,415 206,168 202,169 198,169 194,170 148,341 144,294 132,150
211,415 206,168 202,169 198,169 194,170 148,341 144,294 132,150 123,799
62,481 67,716 71,704 75,693 79,681 27,553 48,485 70,171 89,064

2019
(29,426)
0
14,750
0
0
3,652
2,974
5,164
0
0
(6,621)
0
(9,508)
0
0
0
0
0
(16,500)
0
(16,500)
0
0
0
0
0
0
0
0
0
0
0
0
(26,008)
123,799
97,791
104,115
Historical & Projected Ratios & Analysis Fiscal Years:
2010 2011 2012 2013 2014
RATIOS
Profitability Ratios
Gross Margin 1.5% -3.4% 5.2% 6.7% 8.1%
EBITDA Margin -7.7% -15.2% -16.1% -1.1% 1.7%
Return on Equity (ROE) -43.1% -25.7% -15.2% -9.5%
Ret. on Invested Capital (ROIC) -41.3% -8.1% -1.6% 2.9%
Cash ROIC -35.3% -1.3% 4.4% 8.7%
Turnover / Efficiency Ratios
Asset Turnover 0.71x 0.52x 0.37x 0.91x 1.41x
Inventory Turns - COGS/Invntry 6.16x 9.41x 5.37x 5.67x 7.70x
Days Receivable - AR/Revenue 36 days 28 days 28 days 23 days 21 days
Days Payable - AP/COGS 89 days 68 days 102 days 84 days 75 days
Liquidity Ratios
Debt-to-EBITDA (6.5)x (5.4)x (7.9)x (42.6)x 13.7x
Net Debt-to-EBITDA 3.4x 2.0x 1.5x 3.4x (2.7)x
EBITDA-to-Interest Expense (1.2)x (1.4)x (1.0)x (0.3)x 0.8x
Times Interest Earned (1.6)x (3.1)x (1.0)x (0.9)x 0.2x
Current Ratio 3.49 4.80 5.72 2.97 2.41
Quick Ratio 2.95 4.40 5.15 2.31 1.78
Leverage Ratios
Debt / Equity 1.0 1.3 1.6 1.7 1.2
Net Debt / Equity (0.5) (0.5) (0.3) (0.1) (0.2)
Long-Term Debt / Equity 1.0 1.3 1.6 1.6 1.2
Debt / Total Capitalization 0.5 1.8 1.9 2.3 2.0
Net Debt / Total Capitalization (2.1) (4.3) (4.0) (1.3) (0.4)
ECONOMIC PROFIT ANALYSIS

Net operating profit after-tax (32,957) (89,268) (15,579) (3,335) 6,753
Total operating capital 583,492 516,489 492,696 518,586 434,958
After-tax cost of capital 13.1% 13.1% 13.1% 13.1% 13.1%
Dollar cost of capital 76,529 67,741 64,620 68,016 57,048
Economic profit (109,485) (157,009) (80,199) (71,350) (50,294)
←
LEVERAGE ANALYSIS 2011 Sales+10% Delta Leverage

Operating: ∆EBIT / ∆Sales Revenue 688,041 756,845 10.0% (4.5)x
← 3rd parties (2,693) (2,693)
COGS 641,732 705,905
OpEx 53,928 53,928
Impairmt 0 0
Financial: ∆Earnings / ∆EBIT EBIT (10,312) (5,681) -44.9% 0.3x
← Interest 23,382 23,382
Taxes (16,907) (14,583)
Combined: ∆Earnings / ∆Sales Earnings (16,787) (14,480) -13.7% (1.4)x
←
Z-SCORE FOR FINANCIAL DISTRESS MV Equity: 414,000

Where Z is the sum of:
1.2 * Net Working Cap'l / Assets 0.622 0.651 0.653 0.537 0.451
1.4 * Retained Earnings / Assets 0.324 0.221 0.045 -0.085 -0.102
3.3 * EBIT / Assets -0.234 -0.580 -0.203 -0.088 0.015
0.6 * MV Equity / BV of Liabilities 0.511 0.607 0.647 0.518 0.588
1.0 * Sales / Assets 0.709 0.523 0.370 0.910 1.414
If no changes to the status-quo: 1.933 1.423 1.512 1.792 2.366
1.81 >Z ... Risk of Isolvency 0 1 1 1 0
<Z< … Potential Distress 1 0 0 0 1
2.675 <Z ... No Distress 0 0 0 0 0
Click 's below to unhide:

INCOME STATEMENT
← BALANCE SHEET
←
Nov30 Feb28 May31 Aug31 2015 2016 2017 2018 2019
7.8% 7.8% 7.8% 7.8% 7.8% 8.1% 8.2% 8.2% 8.5%

0.4% 0.4% 0.4% 0.4% 0.4% 1.1% 1.1% 0.9% -1.2%
-3.4% -3.5% -3.5% -3.5% -11.0% -8.9% -8.7% -9.0% -14.0%
-0.2% -0.2% -0.2% -0.2% 0.9% 2.5% 2.7% 2.1% -2.5%
2.1% 2.2% 2.2% 2.2% 7.0% 7.8% 8.2% 7.6% 3.1%
0.36x 0.36x 0.36x 0.36x 1.54x 1.67x 1.68x 1.64x 1.21x

2.15x 2.15x 2.15x 2.15x 6.48x 6.98x 6.98x 7.11x 5.27x
75 days 75 days 75 days 75 days 27 days 27 days 27 days 27 days 36 days
212.0x 212.0x 212.0x 212.0x 52.9x 19.1x 18.0x 21.9x (24.8)x

(34.4)x (34.4)x (34.4)x (34.4)x 13.3x 3.4x 2.5x 2.1x (3.5)x
0.2x 0.2x 0.2x 0.2x 0.2x 0.6x 0.6x 0.5x (0.5)x
(0.8)x (0.8)x (0.8)x (0.8)x (0.5)x (0.1)x (0.1)x (0.2)x (1.2)x
2.48 2.48 2.48 2.48 2.01 1.92 1.93 1.96 1.93
1.87 1.87 1.87 1.87 1.29 1.25 1.26 1.31 1.29
1.2 1.2 1.2 1.2 1.2 1.2 1.1 1.1 1.2

(0.2) (0.2) (0.2) (0.2) 0.3 0.2 0.2 0.1 0.2
1.2 1.2 1.2 1.2 1.2 1.2 1.1 1.1 1.2
2.0 2.0 2.0 2.0 2.0 2.0 2.0 1.9 2.0
(0.6) (0.6) (0.6) (0.6) 0.1 0.1 0.1 0.0 0.0
(546) (546) (546) (546) 2,204 6,749 7,127 5,512 (6,593)

436,195 436,183 436,172 436,161 378,254 390,620 404,292 407,767 395,294
13.1% 13.1% 13.1% 13.1% 13.1% 13.1% 13.1% 13.1% 13.1%
57,210 57,208 57,207 57,205 49,610 51,232 53,025 53,481 51,845
(57,756) (57,754) (57,753) (57,751) (47,406) (44,483) (45,898) (47,969) (58,438)
2012 Sales+10% Delta Leverage 2013 Sales+10% Delta

995,761 1,095,337 10.0% 6.5x 992,698 1,091,968 10.0%
(4,335) (4,335) (2,734) (2,734)
915,310 1,006,841 915,059 1,006,565
63,715 63,715 73,194 73,194
0 0 0 0
12,402 20,447 64.9% (1.4)x 1,711 9,475 453.7%
20,969 20,969 20,214 20,214
(3,520) (214) (12,259) (7,115)
(5,047) (307) -93.9% (9.4)x (6,244) (3,624) -42.0%
0.453 0.453 0.453 0.453 0.366 0.361 0.369 0.374 0.363

-0.119 -0.119 -0.119 -0.119 -0.123 -0.120 -0.118 -0.112 -0.141
-0.022 -0.022 -0.022 -0.022 -0.051 -0.012 -0.008 -0.019 -0.117
0.605 0.605 0.605 0.605 0.577 0.542 0.533 0.537 0.545
0.362 0.362 0.362 0.362 1.538 1.665 1.679 1.636 1.206
1.279 1.279 1.279 1.279 2.307 2.437 2.455 2.416 1.855
1 1 1 1 0 0 0 0 0
0 0 0 0 1 1 1 1 1
0 0 0 0 0 0 0 0 0
Leverage
45.4x
(0.1)x
(4.2)x
Historical & Projected Debt Schedule ($000's) Fiscal Years:
2010 2011 2012 2013 2014
NOTES PAYABLE
Proceeds / (Repayments)
Term Loan #1 0 (71,750)
Senior Notes 0 0
Term Loan #2 1,416 (404) (404)
Term Loan #3 0 0
Total Proceeds & Repayments 0 0 1,416 (404) (72,154)
check against Cash Flows 0 0 0 0 0
Principal Balance
Term Loan #1 71,750 71,750 71,750 71,750 0
Senior Notes 235,000 235,000 235,000 235,000 235,000
Term Loan #2 1,416 1,012 608
Term Loan #3 0 0 0
Total Principal Balance 306,750 306,750 308,166 307,762 235,608
check against Balance Sheet 0 0 0 0 0
Interest Expense
Term Loan #1 31,592 32,789 35,255 2,770 345
Senior Notes 19,681 19,681
Term Loan #2 297 339
Term Loan #3 0 0
Total Interest Expense 31,592 32,789 35,255 22,748 20,366
REVOLVING NOTES
Draws / (Paybacks) of Revolvers
Revolver 0 18,250 (8,250)
Line of Credit 2,630 (1,392) 1,135
Ending (outstanding) Balance 0 0 2,630 16,858 (7,115)
check against Balance Sheet 0 0 0 0 0
Revolver Interest Expense

Revolver 729 3,233 1,868 303 485
Line of Credit 5,909 4,665 1,843 330 117
Total Revolver Interest Expense 6,638 7,897 3,711 633 603
TOTAL INTEREST EXPENSE 38,230 40,686 38,966 23,382 20,969

check against P&L 0 0 0 0 0
Nov30 Feb28 May31 Aug31 2015 2016 2017 2018 2019
0 0
0 0
(404) (204) 0
0 0 0
0 0 0 0 (404) (204) 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0
235,000 235,000 235,000 235,000 235,000 235,000 235,000 235,000 235,000
608 608 608 608 204 (0) (0)
0 0 0 0 0 0 0
235,608 235,608 235,608 235,608 235,204 235,000 235,000 235,000 235,000
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0
4,920 4,920 4,920 4,920 19,681 19,681 19,681 19,681 19,681
14 14 14 14 14 0 0
0 0 0 0 0 0 0
4,935 4,935 4,935 4,935 19,695 19,681 19,681 19,681 19,681
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
400 400 400 400 400 450 500

119 119 119 119 119 119 119
519 519 519 519 519 569 619
5,453 5,453 5,453 5,453 20,214 20,250 20,300 19,681 19,681

0 0 0 0 0 0 0 0 0
Business Unit 1
Business Drivers (totals in 000's) Fiscal Years:
2010 2011 2012
Production by Product Type Facility

Product 1 BBB 3,786 4,621 4,946
Product 2 CCC 33
Product 3 CCC 325 325 325
Product 4 CCC 1,311 1,429 1,287
Small Product 5 CCC
Small Product 5 AAA 1,440 1,129 973
Medium Product 5 CCC
Medium Product 5 AAA 4,195 4,712 4,736
Large Product 5 CCC
Large Product 5 AAA 125 191
Product 6 AAA 244 430 516
Other #1
Other #2
Other #3
Total 11,334 12,771 12,975
Pricing by Product Type Facility Inflation: 4.08% 3.02%

Product 1 BBB $63 $66 $67
Product 2 CCC $77 $80 $82
Product 3 CCC $128 $133 $137
Product 4 CCC $102 $106 $109
Small Product 5 CCC $0 $0
Small Product 5 AAA $64 $67 $69
Medium Product 5 CCC $0 $0
Medium Product 5 AAA $77 $80 $82
Large Product 5 CCC $0 $0
Large Product 5 AAA $0 $0
Product 6 AAA $98 $102 $105
Other #1 $0 $0
Other #2 $0 $0
Other #3 $0 $0
Gross Margin % Facility

Product 1 BBB 7.0% 7.0% 7.0%
Product 2 CCC 8%
Product 3 CCC 8% 8% 8%
Product 4 CCC 7% 7% 7%
Small Product 5 CCC
Small Product 5 AAA 8% 9% 9%
Medium Product 5 CCC
Medium Product 5 AAA 8% 9% 9%
Large Product 5 CCC
Large Product 5 AAA 7% 7%
Product 6 AAA 10% 7% 9%
Other #1
Other #2
Other #3
Capital Expenditures
Maintenance $13,000 $14,000 $14,000
Growth $0 $0 $0
Total Capital Expenditures $13,000 $14,000 $14,000
Revenue Facility
Product 1 BBB $238,284 $302,685 $333,745
Product 2 CCC $2,486 $0 $0
Product 3 CCC $41,438 $43,130 $44,431
Product 4 CCC $133,722 $151,711 $140,756
Small Product 5 CCC $0 $0 $0
Small Product 5 AAA $92,343 $75,370 $66,917
Medium Product 5 CCC $0 $0 $0
Medium Product 5 AAA $321,917 $376,372 $389,698
Large Product 5 CCC $0 $0 $0
Large Product 5 AAA $0 $0 $0
Product 6 AAA $23,796 $43,681 $53,999
Other #1 $0 $0 $0
Other #2 $0 $0 $0
Other #3 $0 $0 $0
Total Revenue $853,986 $992,948 $1,029,545
Cost of Revenues Facility

Product 1 BBB $221,604 $281,497 $310,383
Product 2 CCC $2,287 $0 $0
Product 3 CCC $38,123 $39,679 $40,876
Product 4 CCC $124,361 $141,091 $130,903
Product 6 AAA $21,416 $40,624 $49,139
Other #1 $0 $0 $0
Other #2 $0 $0 $0
Other #3 $0 $0 $0
Overhead (Under)/Over Absorbed
Total Cost of Revenues $788,911 $913,976 $946,820
Gross Margin $ Facility

Product 1 BBB $16,680 $21,188 $23,362
Product 2 CCC $199 $0 $0
Product 3 CCC $3,315 $3,450 $3,554
Product 4 CCC $9,361 $10,620 $9,853
Product 6 AAA $2,380 $3,058 $4,860
Other #1 $0 $0 $0
Other #2 $0 $0 $0
Other #3 $0 $0 $0
Overhead (Under)/Over Absorbed $0 $0 $0
Total Cost of Revenues $65,075 $78,973 $82,725
Years:
2013 2014 ###
P&L
4,946 1,625 Revenue
Cost of revenues
325 325 Gross margin $
837 837 Gross margin %
973 973 AAA P&L

Revenue
4,736 3,000 Cost of revenues
OH Variance %
191 191 OH Variance $
516 860 Gross margin $
Gross margin %
Operating expense (SG&A)
AAA OpEx
12,524 7,811 BBB OpEx
CCC OpEx
2.00% 2.00% Mgmt Fee 3.00%
$69 $70 Partner Mgmt Fee % 1.50%
$84 $85 Total operating expense
$139 $142 Net (pretax) earnings
$112 $114 BBB AAA 2.50%
$0 $0 AAA 97.50%
$70 $72 Total Pretax Earnings
$0 $0 Taxes
$84 $86 BBB AAA 40%
$0 $0 AAA 40%
$0 $0 Total Taxes
$107 $109 After-tax Profit
$0 $0 Earnings to Minority Interest 50%
$0 $0
$0 $0
7.0% 7.0%
8% 8%
7% 7%
9% 9%
9% 9%
7% 7%
9% 9%
$14,000 $14,000
$0 $0
$14,000 $14,000
$340,420 $114,085
$0 $0
$45,319 $46,226
$93,321 $95,188
$0 $0
$68,255 $69,620
$0 $0
$397,492 $256,804
$0 $0
$0 $0
$55,079 $93,634
$0 $0
$0 $0
$0 $0
$999,886 $675,556
$316,591 $106,099
$0 $0
$41,694 $42,528
$86,789 $88,525
$0 $0
$62,112 $63,354
$0 $0
$361,718 $233,691
$0 $0
$0 $0
$50,122 $85,207
$0 $0
$0 $0
$0 $0
$919,024 $619,403
$23,829 $7,986
$0 $0
$3,626 $3,698
$6,532 $6,663
$0 $0
$6,143 $6,266
$0 $0
$35,774 $23,112
$0 $0
$0 $0
$4,957 $8,427
$0 $0
$0 $0
$0 $0
$0 $0
$80,862 $56,152
Fiscal Years:
2016 2017 2018 2019 2017
853,986 992,948 1,029,545 999,886 675,556

788,911 913,976 946,820 919,024 619,403
65,075 78,973 82,725 80,862 56,152
7.6% 8.0% 8.0% 8.1% 8.3%
438,056 495,423 510,613 520,826 420,058

402,536 451,709 464,658 473,951 382,252
-0.25% 0.00% 0.00% 0.00% 0.00%
(1,095) (1,239) (1,277) (1,302) (1,050)
36,616 44,953 47,232 48,176 38,855
8.4% 9.1% 9.3% 9.3% 9.3%
1,755 1,878 2,009 2,009 2,009

2,806 2,890 2,977 2,977 2,977
2,395 2,587 2,794 2,794 2,794
13,142 14,863 15,318 15,625 12,602
6,571 7,431 7,659 7,812 6,301
26,668 29,649 30,757 31,217 26,682
249 383 412 424 304

9,698 14,922 16,063 16,536 11,869
9,947 15,304 16,474 16,960 12,173
99 153 165 170 122

3,879 5,969 6,425 6,614 4,748
3,979 6,122 6,590 6,784 4,869
5,968 9,183 9,885 10,176 7,304
2,984 4,591 4,942 5,088 3,652
Business Unit 1
Historical & Projected P&L ($000's) Fiscal Years: Quarters, FY2013
2010 2011 2012 2013 2014 Nov30
Periods out ► -6.4 -8.4
Revenue 400,939 229,083 161,309 598,906 870,658 213,496
Cost of revenues 403,769 256,093 161,351 563,940 800,693 197,228
Gross margin $ (2,830) (27,010) (42) 34,966 69,966 16,269
Gross margin % -0.7% -11.8% 0.0% 5.8% 8.0% 7.6%
Operating expense (G&A) 15,434 5,691 11,386 18,559 24,345 6,667
EBITDA (18,264) (32,701) (11,428) 16,407 45,621 9,602
Impairment & special charges 0
Dep'n & amort. 8,435 9,556 9,151 8,361 8,800 2,438
EBIT (26,698) (42,257) (20,579) 8,046 36,821 7,164
Interest expense/(benefit) 729 3,233 1,868 600 825 414
Earnings before taxes (27,427) (45,490) (22,447) 7,446 35,996 6,750
Income taxes (489) (3,279) 1,387 4,201 18,991 2,700
Earnings before unconsol. affil. (26,939) (42,211) (23,834) 3,245 17,005 4,050
Earnings from unconsol. affil. 872 (565) (607) (592) (342) 63
Earnings, Internal (26,067) (42,776) (24,441) 2,653 16,663 4,112
Earnings attrib to non-contr ints 3,182 1,472 (4,054) (2,101) (3,993) (746)
Net earnings (22,885) (41,304) (28,495) 552 12,670 3,366
NOPAT (26,210) (38,978) (21,966) 3,845 17,830 4,464
Capital expense (net) (19,719) (8,029) (7,702) (19,150) (18,500) (3,250)
Working capital delta 0 9,582 (1,977) (11,103) 18,506 (1,248)
Free cash flow (37,494) (27,869) (22,494) (18,048) 26,635
Discounted FCF 58,273 0
Tax Rate 40% Term'l Per.
Terminal Stage1 # Yrs beyond 2017 10 8.7

Terminal Stage1 Growth % 3.0% 30,163
Terminal Stage2 Growth % 2.0% Perp. DCF
WACC 13.1%
Valuation 178,909 337,419 88.6%
DCF Comps Δ
Deliveries 5,786 2,611 1,907 8,735 12,246 2,833

Quarters, FY2013 Fiscal Years: Terminal Years:
Feb28 May31 Aug31 2015 2016 2017 2018 2019
-8.2 -7.9 -7.7 -5.4 -4.3 -3.3 -2.3 -1.3 -0.3 0.7
213,496 213,496 213,496 853,986 992,948 1,029,545 999,886 675,556
197,228 197,228 197,228 788,911 913,976 946,820 919,024 619,403
16,269 16,269 16,269 65,075 78,973 82,725 80,862 56,152
7.6% 7.6% 7.6% 7.6% 8.0% 8.0% 8.1% 8.3%
6,667 6,667 6,667 26,668 29,649 30,757 31,217 26,682
9,602 9,602 9,602 38,406 49,324 51,967 49,645 29,470
0 0 0 0 0 0 0 0
2,438 2,438 2,438 9,750 10,250 10,500 10,500 10,500
7,164 7,164 7,164 28,656 39,074 41,467 39,145 18,970
414 414 414 414 450 500 0 0
6,750 6,750 6,750 28,242 38,624 40,967 39,145 18,970
2,700 2,700 2,700 11,297 15,450 16,387 15,658 7,588
4,050 4,050 4,050 16,945 23,174 24,580 23,487 11,382
63 63 63 250 500 500 500 500
4,112 4,112 4,112 17,195 23,674 25,080 23,987 11,882
(746) (746) (746) (2,984) (4,591) (4,942) (5,088) (3,652)
3,366 3,366 3,366 14,211 19,083 20,138 18,899 8,230
4,464 4,464 4,464 17,359 23,624 25,080 23,487 11,382
(3,250) (3,250) (3,250) (13,000) (14,000) (14,000) (14,000) (14,000)
0 0 0 (31,523) 6,513 (506) 6,742 1,854
(17,414) 26,387 21,075 26,729 9,736 ###
0 0 0 (33,681) 45,103 31,846 35,706 11,498
2,833 2,833 2,833 11,334 12,771 12,975 12,524 7,811

1.7 2.7 3.7 4.7 5.7 6.7 7.7 8.7
### ### #VALUE! ### ### ### ### ###

Business Unit 1
2010 2011 2012 2013 2014
ASSETS
Cash & cash equivalents 36,513 14,402 0 6,967 14,332
Restricted cash
Accounts receivable 40,117 17,380 12,470 38,470 50,019
Inventory 65,488 27,188 29,983 99,345 103,895
Assets held for sale
Invest. in direct finance leases
Equipment on operating leases
Plant & equipment 136,506 127,974 132,614 163,521 177,329
Accumulated depreciation
Net P&E 136,506 127,974 132,614 163,521 177,329
Goodwill
Intangibles & Other Assets
TOTAL ASSETS 278,623 186,945 175,068 308,304 345,575
LIABILITIES
Revolving notes 0 0 0 18,250 (8,250)
A/P and other accrued 98,208 47,311 44,793 129,475 164,360
Losses in ex. of inv. of de-con sub
Deferred revenue 4,407 3,850 2,275 1,852 1,571
Deferred income taxes
Notes payable 0 0 1,416 1,012 608
Other liabilities
TOTAL LIABILITIES 102,615 51,161 48,485 150,589 158,289
EQUITY
Company
Preferred stock
Common stock
Additional paid-in capital
Retained earnings 176,008 135,784 126,583 157,715 187,286
Accum. other comprehensive loss
Total Equity Company 176,008 135,784 126,583 157,715 187,286
Noncontrolling interest
TOTAL EQUITY 176,008 135,784 126,583 157,715 187,286
TOTAL LIABILITIES + EQUITY 278,623 186,945 175,068 308,304 345,575
Net Working Capital 39,502 7,810 (4,615) 13,455 2,314
Check 0 0 0 0 0
Ratio Toggles
Nov30 Feb28 May31 Aug31 2015 2016 2017 2018 2019
20,623 26,914 33,205 39,497 37,477 77,077 112,461 157,597 181,899 (plug to tie Cash Flo
44,107 44,107 44,107 44,107 63,352 73,627 76,323 72,671 69,698

91,594 91,594 91,594 91,594 121,701 130,877 135,562 129,002 123,838
177,329 177,329 177,329 177,329 181,172 185,280 189,257 189,257 189,257
177,329 177,329 177,329 177,329 181,172 185,280 189,257 189,257 189,257
333,653 339,945 346,236 352,527 403,702 466,862 513,602 548,527 564,691
0 0 0 0 0 0 0 0 0
144,899 144,899 144,899 144,899 162,546 188,248 194,986 191,516 185,233
1,571 1,571 1,571 1,571 1,754 2,015 2,152 2,152 2,152
608 608 608 608 204 (0) (0) 0 0
147,079 147,079 147,079 147,079 164,504 190,263 197,138 193,668 187,385
185,327 191,618 197,909 204,201 242,204 279,182 319,613 357,256 379,748 (plug to Balance)
185,327 191,618 197,909 204,201 242,204 279,182 319,613 357,256 379,748
185,327 191,618 197,909 204,201 242,204 279,182 319,613 357,256 379,748

332,406 338,697 344,988 351,279 406,707 469,445 516,750 550,923 567,132
58,230 91,318 127,208 165,603 188,050
1,248 1,248 1,248 1,248 (3,005) (2,583) (3,148) (2,397) (2,441)

2.15x 2.15x 2.15x 2.15x 6.48x 6.98x 6.98x 7.12x 5.00x
(plug to tie Cash Flow)
(plug to Balance)
Business Unit 1
2010 2011 2012 2013 2014
Net Earnings (22,885) (41,304) (28,495) 552 12,670
Deferred income taxes 0 0 0 0
Depreciation & amortization 8,435 9,556 9,151 8,361 8,800
(Gain)/Loss on sale of equipment
Impairment & special charges 0 0 0 0 0
Other operating items (3,182) (1,472) 4,054 2,101 3,993
Change in Assets:
Accounts receivable 22,736 4,910 (26,000) (11,548)
Inventories 38,300 (2,795) (69,362) (4,550)
Assets held for sale 0 0 0 0
Intangibles & Other Assets 0 0 0 0
A/P and other accrued (50,897) (2,518) 84,681 34,885
Deferred revenue (557) (1,575) (423) (281)
NET CASH +/(-) OPERATING ACTIVITIES (17,632) (23,638) (17,267) (90) 43,969
Use of (investment in) restricted cash 0 0 0 0
Proceeds from sale of equipment
Investment in and advances to unconsol sub.
Acquisition
Other investing items 0 0 0 0
Capital expenditures (maintenance) (19,719) (8,029) (7,702) (19,150) (18,500)
Capital expenditures (growth)
NET CASH +/(-) INVESTING ACTIVITIES (19,719) (8,029) (7,702) (19,150) (18,500)
Change in Revolver 0 0 18,250 (26,500)
Proceeds (Repayment) of borrowings 0 1,416 (404) (404)
Repayment of Subdebt
Dividends
Investment by joint venture partner
Stock options & restr. stock awds exercised
Equity Re-purchase/Retirement
Equity Issuance Proceeds
Excess Tax Benefit of stock options exercised
Other financing items
NET CASH +/(-) FINANCING ACTIVITIES 0 0 1,416 17,846 (26,904)
Effect of exchange rate changes

INCREASE (DECREASE) IN CASH & EQUIV. (37,351) (31,667) (23,553) (1,394) (1,435)
Cash & Equivalents at Beginning of Period 65,429 28,078 (3,589) (27,142) (28,536)
CASH & EQUIVALENTS AT END OF PERIOD 28,078 (3,589) (27,142) (28,536) (29,971)
Check 8,435 17,991 27,142 35,503 44,303

Nov30 Feb28 May31 Aug31 2015 2016 2017 2018 2019
3,366 3,366 3,366 3,366 14,211 19,083 20,138 18,899 8,230

0 0 0 0 0 0 0 0 0
2,438 2,438 2,438 2,438 9,750 10,250 10,500 10,500 10,500
0 0 0 0 0 0 0 0 0
746 746 746 746 2,984 4,591 4,942 5,088 3,652
5,912 0 0 0 (19,245) (10,275) (2,696) 3,652 2,974

12,301 0 0 0 (30,107) (9,176) (4,684) 6,560 5,164
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
(19,460) 0 0 0 17,646 25,703 6,738 (3,470) (6,283)

0 0 0 0 182 262 137 0 0
5,302 6,550 6,550 6,550 (4,578) 40,437 35,075 41,229 24,236
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
(3,250) (3,250) (3,250) (3,250) (13,000) (14,000) (14,000) (14,000) (14,000)
0 0 0 0 0
(3,250) (3,250) (3,250) (3,250) (13,000) (14,000) (14,000) (14,000) (14,000)
0 0 0 0 8,250 0 0 0 0
0 0 0 0 (404) (204) 0 0 0
0 0 0 0 7,846 (204) 0 0 0
2,052 3,300 3,300 3,300 (9,732) 26,233 21,075 27,229 10,236

(29,971) (27,919) (24,619) (21,319) (18,019) (27,751) (1,519) 19,556 46,785
(27,919) (24,619) (21,319) (18,019) (27,751) (1,519) 19,556 46,785 57,021
48,542 51,533 54,524 57,516 65,228 78,596 92,905 110,813 124,878

Business Unit 2
Business Drivers (totals in 000's) Fiscal Years:
2010 2011 2012 2013
Production by Type
Product 1 1,200 1,200 1,200 1,200
Product 2
Product 3
Total 1,200 1,200 1,200 1,200
Avg Sales Price (PLN)

Product 1 $346 $355 $363 $363
Product 2
Product 3
Gross Margin %
Product 1 8.7% 8.7% 8.7% 8.7%
Product 2
Product 3
Exchange Rate 3.00 3.00 3.00 3.00
Capital Expenditures
Maintenance $2,000 $2,500 $2,500 $2,500
Growth $0 $0 $0 $0
Total Capital Expenditures $2,000 $2,500 $2,500 $2,500
Revenue (USD)
Product 1 $138,220 $141,853 $145,399 $145,399
Product 2 $0 $0 $0 $0
Product 3 $0 $0 $0 $0
Total Revenue $138,220 $141,853 $145,399 $145,399
Cost of Revenues (USD)

Product 1 $126,148 $129,452 $132,689 $132,689
Product 2 $0 $0 $0 $0
Product 3 $0 $0 $0 $0
Total Cost of Revenues $126,148 $129,452 $132,689 $132,689
Gross Margin $
Product 1 $12,072 $12,401 $12,711 $12,711
Product 2 $0 $0 $0 $0
Product 3 $0 $0 $0 $0
Total Cost of Revenues $12,072 $12,401 $12,711 $12,711
Fiscal Years:
2014 ### 2016 2017 2018
P&L
1,200 Revenue 138,220 141,853 145,399
Cost of revenues 126,148 129,452 132,689
Gross margin $ 12,072 12,401 12,711
1,200 Gross margin % 8.7% 8.7% 8.7%
OpEx (SG&A $7,764 $8,153 $8,560
Biz2 Mgmt Fee $380 $380 $380
$363 Other $1,122 $1,178 $1,237
Total OpEx $9,266 $9,711 $10,177
8.7%
3.00
$2,500
$0
$2,500
$145,399
$0
$0
$145,399
$132,689
$0
$0
$132,689
$12,711
$0
$0
$12,711
cal Years:
2019 2017
145,399 145,399
132,689 132,689
12,711 12,711
8.7% 8.7%
$8,560 $8,560
$380 $380
$1,237 $1,237
$10,177 $10,177
Business Unit 2
2010 2011 2012 2013 2014 Nov30
Revenue 209,873 143,868 80,734 88,535 124,787 34,555
Cost of revenues 198,972 131,166 69,329 78,283 114,899 31,537
Gross margin $ 10,901 12,702 11,405 10,252 9,888 3,018
Gross margin % 5.2% 8.8% 14.1% 11.6% 7.9% 8.7%
EBITDA 2,486 5,322 4,414 1,921 1,429 701
Impairment & special charges 0
Dep'n & amort. 2,832 1,914 1,909 1,583 1,798 500
EBIT (346) 3,407 2,505 338 (369) 201
Interest expense/(benefit) 5,909 4,665 1,843 330 117 119
Earnings before taxes (6,255) (1,258) 662 8 (486) 83
Income taxes 0 (2,501) (312) 463 462 15
Earnings before unconsol. affil. (6,255) 1,243 974 (456) (948) 68
Earnings from unconsol. affil. 0
Earnings, Internal (6,255) 1,243 974 (456) (948) 68
Earnings attrib to non-contr ints 0
Net earnings (6,255) 1,243 974 (456) (948) 68
NOPAT (346) 5,908 2,817 (125) (831) 187
Capital expense (net) (4,393) (1,080) (1,012) (1,806) (1,456) (500)
Working capital delta 0 3,431 (1,631) (2,261) 2,591 0
Free cash flow (1,907) 10,173 2,083 (2,609) 2,102
Discounted FCF 4,599 0

Terminal Stage1 Growth % 3.0% (1,012)
WACC 13.1%
Valuation (1,369) 10,572 -872.1%
DCF Comps Δ
Deliveries 1,486 1,135 580 740 1,100 300

Feb28 May31 Aug31 2015 2016 2017 2018 2019
-8.2 -7.9 -7.7 -5.4 -4.3 -3.3 -2.3 -1.3 -0.3 0.7
34,555 34,555 34,555 138,220 141,853 145,399 145,399 145,399
31,537 31,537 31,537 126,148 129,452 132,689 132,689 132,689
3,018 3,018 3,018 12,072 12,401 12,711 12,711 12,711
8.7% 8.7% 8.7% 8.7% 8.7% 8.7% 8.7% 8.7%
2,317 2,317 2,317 9,266 9,711 10,177 10,177 10,177
701 701 701 2,806 2,690 2,533 2,533 2,533
0 0 0 0 0 0 0 0
500 500 500 2,000 2,000 2,250 2,250 2,250
201 201 201 806 690 283 283 283
119 119 119 119 119 119 0 0
83 83 83 687 571 165 283 283
15 15 15 124 103 30 51 51
68 68 68 563 468 135 232 232
0 0 0 0 0 0 0 0
68 68 68 563 468 135 232 232
0 0 0 0 0 0 0 0
68 68 68 563 468 135 232 232
187 187 187 682 587 254 232 232
(500) (500) (500) (2,000) (2,500) (2,500) (2,500) (2,500)
0 0 0 (4,957) 1,722 147 325 (338)
(4,275) 1,809 150 308 (356) #VALUE!
0 0 0 (8,268) 3,093 227 411 (420)
300 300 300 1,200 1,200 1,200 1,200 1,200

1.7 2.7 3.7 4.7 5.7 6.7 7.7 8.7
#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Business Unit 2
2010 2011 2012 2013 2014
ASSETS
Cash & cash equivalents 0 7,423 12,203 6,824 13,134
Restricted cash
Accounts receivable 20,999 10,915 6,241 5,687 7,169
Inventory 32,272 13,925 12,883 13,791 14,909
Plant & equipment
Net P&E 0 0 0 0 0
Goodwill
Intangibles & Other Assets
TOTAL ASSETS 53,271 32,263 31,327 26,302 35,212
LIABILITIES
Revolving notes 0 0 2,630 (1,392) 1,135
A/P and other accrued 48,396 24,232 19,247 17,973 23,586
Losses in ex. of inv. of de-con sub
Deferred revenue 6,611 5,775 3,413 2,779 2,357
Notes payable
Other liabilities
TOTAL LIABILITIES 55,006 30,007 25,289 19,360 27,078
EQUITY
Company
Preferred stock
Common stock
Additional paid-in capital
Retained earnings (1,736) 2,257 6,038 6,942 8,134
Total Equity Company (1,736) 2,257 6,038 6,942 8,134
Noncontrolling interest
TOTAL EQUITY (1,736) 2,257 6,038 6,942 8,134
TOTAL LIABILITIES + EQUITY 53,271 32,263 31,327 26,302 35,212
Net Working Capital (1,736) 2,257 8,667 5,550 9,269
Check 0 0 0 0 0
Ratio Toggles
Nov30 Feb28 May31 Aug31 2015 2016 2017 2018 2019
13,612 14,090 14,568 15,046 11,157 14,488 16,365 18,517 20,007 (plug to tie Cash Flo
7,169 7,169 7,169 7,169 10,254 10,518 10,779 10,779 10,779

14,909 14,909 14,909 14,909 19,460 18,537 18,998 18,998 18,998
0 0 0 0 0 0 0 0 0
35,690 36,168 36,645 37,123 40,871 43,543 46,141 48,294 49,783
0 0 0 0 0 0 0 0 0
23,586 23,586 23,586 23,586 25,991 26,663 27,326 27,651 27,313
2,357 2,357 2,357 2,357 2,631 3,023 3,228 3,228 3,228
25,943 25,943 25,943 25,943 28,622 29,686 30,554 30,879 30,541
9,747 10,225 10,703 11,181 12,249 13,858 15,588 17,415 19,242 (plug to Balance)
9,747 10,225 10,703 11,181 12,249 13,858 15,588 17,415 19,242
9,747 10,225 10,703 11,181 12,249 13,858 15,588 17,415 19,242

35,690 36,168 36,645 37,123 40,871 43,543 46,141 48,294 49,783
12,249 13,858 15,588 17,415 19,242
0 0 0 0 0 0 0 0 0
2.12x 2.12x 2.12x 2.12x 6.48x 6.98x 6.98x 6.98x 6.98x
(plug to tie Cash Flow)
(plug to Balance)
Business Unit 2
2010 2011 2012 2013
Net Earnings (6,255) 1,243 974 (456)
Deferred income taxes 0 0 0
Depreciation & amortization 2,832 1,914 1,909 1,583
Impairment & special charges 0 0 0 0
Other operating items 0 0 0 0
Change in Assets:
Accounts receivable 10,084 4,674 554
Inventories 18,346 1,042 (907)
Assets held for sale 0 0 0
Intangibles & Other Assets 0 0 0
A/P and other accrued (24,164) (4,985) (1,274)
Deferred revenue (836) (2,362) (634)
NET CASH +/(-) OPERATING ACTIVITIES (3,423) 6,589 1,253 (1,134)
Use of (investment in) restricted cash 0 0 0
Investment in and advances to unconsol sub.
Acquisition
Other investing items 0 0 0
Capital expenditures (maintenance) (4,393) (1,080) (1,012) (1,806)
Capital expenditures (growth) 0 0 0 0
NET CASH +/(-) INVESTING ACTIVITIES (4,393) (1,080) (1,012) (1,806)
Change in Revolver 0 2,630 (4,022)
Proceeds (Repayment) of borrowings 0 0 0
Dividends
NET CASH +/(-) FINANCING ACTIVITIES 0 0 2,630 (4,022)

INCREASE (DECREASE) IN CASH & EQUIV. (7,816) 5,509 2,870 (6,961)
Cash & Equivalents at Beginning of Period 4,984 (2,832) 2,677 5,547
CASH & EQUIVALENTS AT END OF PERIOD (2,832) 2,677 5,547 (1,414)
Check 2,832 4,746 6,656 8,238

2014 Nov30 Feb28 May31 Aug31 2015 2016 2017 2018 2019
(948) 68 68 68 68 563 468 135 232 232

0 0 0 0 0 0 0 0 0 0
1,798 500 500 500 500 2,000 2,000 2,250 2,250 2,250
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
(1,482) 0 0 0 0 (3,085) (265) (260) 0 0

(1,118) 0 0 0 0 (4,551) 923 (461) 0 0
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
5,613 0 0 0 0 2,406 672 663 325 (338)

(421) 0 0 0 0 273 392 205 0 0
3,441 568 568 568 568 (2,393) 4,191 2,532 2,808 2,144
0 0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0 0
(1,456) (500) (500) (500) (500) (2,000) (2,500) (2,500) (2,500) (2,500)
0 0 0 0 0 0 0 0 0 0
(1,456) (500) (500) (500) (500) (2,000) (2,500) (2,500) (2,500) (2,500)
2,527 0 0 0 0 (1,135) 0 0 0 0
0 0 0 0 0 0 0 0 0 0
2,527 0 0 0 0 (1,135) 0 0 0 0
4,512 68 68 68 68 (5,528) 1,691 32 308 (356)

(1,414) 3,097 3,165 3,233 3,301 3,369 (2,159) (468) (437) (129)
3,097 3,165 3,233 3,301 3,369 (2,159) (468) (437) (129) (485)
10,036 10,446 10,856 11,266 11,676 13,316 14,956 16,801 18,646 20,491
Corporate Overhead Business Unit
2010 2011 2012 2013 2014 Nov30
Revenue 644 1,095 893 600 316 123
Cost of revenues (395) (438) (437) (491) (282) 0
Gross margin $ 1,039 1,533 1,330 1,091 598 123
Gross margin % 161.3% 140.0% 148.9% 181.8% 189.2% 100.0%
EBITDA (31,109) (29,636) (32,111) (25,947) (30,313) (9,192)
Impairment & special charges 2,302 55,667 (11,870)
Dep'n & amort. 668 1,544 2,063 2,678 2,906 2,750
EBIT (34,079) (86,847) (22,304) (28,625) (33,219) (11,942)
Interest expense/(benefit) 31,592 32,789 35,255 22,451 20,027 4,920
Earnings before taxes (65,672) (119,635) (57,559) (51,076) (53,245) (16,862)
Income taxes (27,678) (30,649) (25,874) (21,571) (22,973) (6,745)
Earnings before unconsol. affil. (37,993) (88,986) (31,685) (29,506) (30,272) (10,117)
Earnings from unconsol. affil. 0 0 46 0 0 0
Earnings, Internal (37,993) (88,986) (31,639) (29,506) (30,272) (10,117)
Earnings attrib to non-contr ints
Net earnings (37,993) (88,986) (31,639) (29,506) (30,272) (10,117)
NOPAT (6,401) (56,197) 3,570 (7,054) (10,246) (5,197)
Capital expense (net) (2,379) (2,698) (3,645) (1,500) (1,500) 0
Working capital delta 0 1,324 3,861 7,431 7,185 0
Free cash flow (8,112) (56,028) 5,849 1,556 (1,655)
Discounted FCF (3,622) 0

Terminal Stage1 Growth % 2.0% (46,066)
WACC 13.1%
Valuation (153,045) 0 -100.0%
DCF Comps Δ
Feb28 May31 Aug31 2015 2016 2017 2018 2019
-8.2 -7.9 -7.7 -5.4 -4.3 -3.3 -2.3 -1.3 -0.3 0.7
123 123 123 492 555 814 814 814
0 0 0 0 0 0 0 0
123 123 123 492 555 814 814 814
100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
9,315 9,315 9,315 37,259 40,279 42,280 42,280 42,280
(9,192) (9,192) (9,192) (36,767) (39,724) (41,466) (41,466) (41,466)
2,750 2,750 2,750 2,750 2,500 2,000 2,000 2,000

(11,942) (11,942) (11,942) (39,517) (42,224) (43,466) (43,466) (43,466)
4,920 4,920 4,920 19,681 19,681 19,681 19,681 19,681
(16,862) (16,862) (16,862) (59,198) (61,905) (63,147) (63,147) (63,147)
(6,745) (6,745) (6,745) (23,679) (24,762) (25,259) (25,259) (25,259)
(10,117) (10,117) (10,117) (35,519) (37,143) (37,888) (37,888) (37,888)
0 0 0 0 0 0
(10,117) (10,117) (10,117) (35,519) (37,143) (37,888) (37,888) (37,888)
(10,117) (10,117) (10,117) (35,519) (37,143) (37,888) (37,888) (37,888)

(5,197) (5,197) (5,197) (15,837) (17,462) (18,207) (18,207) (18,207)
0 0 0 (1,500) (1,000) (1,000) 0 0
0 0 0 3,700 3,673 3,638 0 0
(10,887) (12,289) (13,569) (16,207) (16,207) #VALUE!
0 0 0 (21,057) (21,005) (20,504) (21,651) (19,140)
1.7 2.7 3.7 4.7 5.7 6.7 7.7 8.7
#VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

2010 2011 2012 2013
ASSETS
Cash & cash equivalents 429,912 398,454 356,918 336,866
Restricted cash 1,231 1,083 2,525 1,973
Accounts receivable 0 0 0 0
Inventory 0 0 0 0
Plant & equipment
Net P&E 0 0 0 0
Goodwill
Intangibles & Other Assets 99,061 96,902 90,679 82,613
TOTAL ASSETS 530,204 496,439 450,122 421,452
LIABILITIES
Revolving notes 0 0 0 0
A/P and other accrued 0 0 0 0
Losses in ex. of inv. of de-con sub 15,313 15,313 0 0
Deferred revenue 6,611 5,775 3,413 2,779
Notes payable 306,750 306,750 306,750 306,750
Other liabilities
TOTAL LIABILITIES 328,674 327,838 310,163 309,529
EQUITY
Company
Preferred stock
Common stock 17 17 22 26
Additional paid-in capital 99,677 117,060 172,404 240,906
Retained earnings 25,495 (24,924) (111,660) (210,302)
Total Equity Company 125,188 92,153 60,766 30,630
Noncontrolling interest 8,618 8,724 11,469 13,570
TOTAL EQUITY 133,806 100,877 72,235 44,199
TOTAL LIABILITIES + EQUITY 462,480 428,715 382,398 353,728
Net Working Capital 522,362 489,581 444,184 416,700
Check 67,724 67,724 67,724 67,724
Ratio Toggles
Inventory Turns - COGS/Invntry 0.00x 0.00x 0.00x 0.00x
Days Receivable - AR/Revenue 0 days 0 days 0 days 0 days
Days Payable - AP/COGS 0 days 0 days 0 days 0 days
: Quarters, FY2013 Fiscal Years:
2014 Nov30 Feb28 May31 Aug31 2015 2016 2017 2018
246,430 239,650 232,869 226,089 219,309 127,260 101,214 73,496 36,748

1,973 1,973 1,973 1,973 1,973 1,973 1,973 1,973 1,973
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0
75,007 75,007 75,007 75,007 75,007 71,581 68,300 64,867 64,867

323,410 316,630 309,850 303,069 296,289 200,814 171,486 140,336 103,588
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
2,357 2,357 2,357 2,357 2,357 2,631 3,023 3,228 3,228
235,000 235,000 235,000 235,000 235,000 235,000 235,000 235,000 235,000
237,357 237,357 237,357 237,357 237,357 237,631 238,023 238,228 238,228
26 26 26 26 26 26 26 26 26
247,298 247,298 247,298 247,298 247,298 253,690 260,082 266,474 266,474
(246,557) (253,338) (260,118) (266,898) (273,679) (311,152) (351,390) (394,101) (430,849)
766 (6,014) (12,794) (19,575) (26,355) (57,437) (91,283) (127,602) (164,350)

17,563 17,563 17,563 17,563 17,563 20,620 24,746 29,709 29,709
18,329 11,549 4,768 (2,012) (8,792) (36,817) (66,537) (97,892) (134,640)
255,686 248,906 242,126 235,345 228,565 200,814 171,486 140,336 103,588
319,080 196,210 166,491 135,135 98,387
67,724 67,724 67,724 67,724 67,724 0 0 0 0

0.00x 0.00x 0.00x 0.00x 0.00x 0.00x 0.00x 0.00x 0.00x
2019
0 (plug to tie Cash Flow)

1,973
0
0
64,867
66,840
0
0
3,228
235,000
238,228
26
266,474
(467,597) (plug to Balance)
(201,097)
29,709
(171,388)
66,840
61,639
0
0.00x
0 days
0 days
2010 2011 2012 2013
Net Earnings (37,993) (88,986) (31,639) (29,506)
Deferred income taxes 0 0 0 0
Depreciation & amortization 668 1,544 2,063 2,678
Impairment & special charges 2,302 55,667 (11,870) 0
Other operating items 0 0 0 0
Change in Assets:
Accounts receivable 0 0 0
Inventories 0 0 0
Assets held for sale 0 0 0
Intangibles & Other Assets 2,159 6,223 8,066
A/P and other accrued 0 0 0
Deferred revenue (836) (2,362) (634)
NET CASH +/(-) OPERATING ACTIVITIES (35,023) (30,452) (37,585) (19,396)
Use of (investment in) restricted cash 148 (1,442) 552
Investment in and advances to unconsol sub. 858 0 (927) (479)
Acquisition (91,166) 0 0
Other investing items 0 0 0
Capital expenditures (maintenance) (2,379) (2,698) (3,645) (1,500)
Capital expenditures (growth)
NET CASH +/(-) INVESTING ACTIVITIES (92,687) (2,550) (6,014) (1,426)
Change in Revolver 0 0 0
Proceeds (Repayment) of borrowings 0 0 0
Dividends
NET CASH +/(-) FINANCING ACTIVITIES 0 0 0 0

INCREASE (DECREASE) IN CASH & EQUIV. (127,710) (33,002) (43,598) (20,823)
Cash & Equivalents at Beginning of Period 556,954 429,244 396,242 352,644
CASH & EQUIVALENTS AT END OF PERIOD 429,244 396,242 352,644 331,821
Check 668 2,212 4,275 5,045

2014 Nov30 Feb28 May31 Aug31 2015 2016 2017 2018
(30,272) (10,117) (10,117) (10,117) (10,117) (35,519) (37,143) (37,888) (37,888)

0 0 0 0 0 0 0 0 0
2,906 2,750 2,750 2,750 2,750 2,750 2,500 2,000 2,000
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
7,606 0 0 0 0 3,427 3,281 3,433 0
0 0 0 0 0 0 0 0 0
(421) 0 0 0 0 273 392 205 0
(20,182) (7,367) (7,367) (7,367) (7,367) (29,069) (30,970) (32,250) (35,888)
0 0 0 0 0 0 0 0 0
(100) 0 0 0
0 0 0 0
0 0 0 0 0 0 0 0 0
(1,500) (1,500) (1,000) (1,000)
(1,600) 0 0 0 0 (1,500) (1,000) (1,000) 0
0 0 0 0 0 0 0 0 0
(71,750) 0 0 0 0 0 0 0 0
(71,750) 0 0 0 0 0 0 0 0
(93,532) (7,367) (7,367) (7,367) (7,367) (30,569) (31,970) (33,250) (35,888)

331,821 238,289 230,922 223,554 216,187 208,820 178,252 146,281 113,031
238,289 230,922 223,554 216,187 208,820 178,252 146,281 113,031 77,143
8,141 8,728 9,315 9,902 10,488 (50,991) (45,068) (39,535) (40,395)

2019
(37,888)
0
2,000
0
0
0
0
0
0
0
0
(35,888)
0
0
(35,888)
77,143
41,255
(41,255)

Manufacturing 1cqhd8sj1 - 416110

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Note: All except the Rollup (black) tabs are protected; please contact scott@ExcelModels.

Company Rollup Business Unit #1

h two operating units and an corporate overhead cost center

ness. The tabs are color-coded as follows:

Business Unit #2 Overhead Unit

public companies, whose Price-to-Earnings (EV/EBITDA) ratio determines an alternate Valuation:

lculations of the two Valuations, and summary exhibits

Copyright 2016, Scott Beber, ExcelModels.com

Results & Illustrations

Approach Methodology Formula: Data Sources: Used Primarily By:

Asset Liquidation value, Market prices of Auctions, Indexes, Companies in distress

Methodology Advantages Drawbacks

Factors that affect V:

Methodology Rationale Requirements

Weighted Average Cost of Capital

Corporate Overhead ($30,313) $0.0

*Forecast of remainder of fiscal year

Company's Equity Value ($ mil), per:

Company's Market Value of Common Equity:

Common Stock Over / (Under) Valuation:

Market Compara... Discounted Cash ...

Enterprise Value ($ mil): $348.0 $24.5

2.0x 1.7x 1.8x

Operating (EBITDA) Margin

Return on Mkt Comp Valn Return on DCF Valn

| Return on Market Comps Value

Current Assets less Current Liabilities

Current Assets: • Cash Current Liabilities: • Accounts payable

Market Trailing Price / EV

N.I. to Diluted Total Total Current Levered

Click 's for individual BU's

Deliveries 7,272 3,746 2,487 9,475 13,346

3,133 3,133 3,133 3,133 12,534 13,971 14,175 13,724 9,011

0 #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE! #VALUE!

Net Working Capital 0 560,129 499,647 448,236 435,706 330,664

Check 0 67,724 67,724 67,724 67,724 67,724

273,884 273,873 273,862 273,851 175,894 192,779 202,321 212,862 201,905

266,689 271,667 277,930 281,404 268,931

68,972 68,972 68,972 68,972 (3,005) (2,583) (3,148) (2,397) (2,441)

Effect of exchange rate changes 0 0 0 0 0

Check 0 11,935 24,949 38,073 48,786

(18,551) (6,683) (6,683) (6,683) (6,683) (20,744) (17,592) (17,615) (18,757)

(13,030) 5,912 0 0 0 (22,330) (10,540) (2,956) 3,652

40,498 (19,460) 0 0 0 20,052 26,374 7,400 (3,145)

62,481 67,716 71,704 75,693 79,681 27,553 48,485 70,171 89,064

Click 's for individual BU's

ECONOMIC PROFIT ANALYSIS

LEVERAGE ANALYSIS 2011 Sales+10% Delta Leverage

Click 's for individual BU's

Z-SCORE FOR FINANCIAL DISTRESS MV Equity: 414,000

Click 's below to unhide:

7.8% 7.8% 7.8% 7.8% 7.8% 8.1% 8.2% 8.2% 8.5%

0.36x 0.36x 0.36x 0.36x 1.54x 1.67x 1.68x 1.64x 1.21x

212.0x 212.0x 212.0x 212.0x 52.9x 19.1x 18.0x 21.9x (24.8)x

1.2 1.2 1.2 1.2 1.2 1.2 1.1 1.1 1.2

(546) (546) (546) (546) 2,204 6,749 7,127 5,512 (6,593)

2012 Sales+10% Delta Leverage 2013 Sales+10% Delta

0.453 0.453 0.453 0.453 0.366 0.361 0.369 0.374 0.363

check against Cash Flows 0 0 0 0 0

check against Balance Sheet 0 0 0 0 0

check against Balance Sheet 0 0 0 0 0

Revolver Interest Expense

TOTAL INTEREST EXPENSE 38,230 40,686 38,966 23,382 20,969