RATIOS

1993 1994 1995 AVERAGE

Net Sales 2921 3477 4519
19.03% 29.97% 24.50%
Total Cost of Goods Sold 2202 2634 3424
COGS/Sales 75.39% 75.75% 75.77% 75.64%
Net Fixed Assets 233 262 388
NFA TO Ratio 12.54 13.27 11.65 12.48
Account Receivables 306 411 606
AR/Sales 38.24 43.14 48.95 43.44
Inventory 337 432 587
Inventory/Daily COGS 55.86 59.86 62.57 59.43
Accounts Payables 213 340 376
AP/Purchases 35.19 45.47 38.35 39.67
Accrued Expenses 42 45 75
Acc. Exp./Sales 1.44% 1.29% 1.66% 1.46%

Operating Expenses 622 717 940

Op Exp/ Sales 21.29% 20.62% 20.80% 20.91%

EBIT 97 126 155

OPM 3.3% 3.6% 3.4% 3.46%
COGS/Sales

NFA TO Ratio

AR/daily Sales

Inventory/Daily COGS

AP/daily Purchases

Acc. Exp./Sales

Op Exp/ Sales

OPM
INCOME STATEMENT
1993 1994 1995
Net Sales 2921 3477 4519
Sales Growth Rate 19.03% 29.97%
Beginning Inventory 330 337 432
Purchases 2209 2729 3579
Ending Inventory 337 432 587
Total Cost of Goods Sold 2202 2634 3424
COGS / Sales 75.39% 75.75% 75.77% 75.64%
Gross Profit 719 843 1095
Operating Expenses 622 717 940
EBIT 97 126 155
Interest Expense 23 42 56
Net Income Before Income Tax 74 84 99
Provision for Income Taxes 14 16 22
Net Income 60 68 77

0.212940773708 0.206212251941 0.208010621819 20.91%

BALANCE SHEET
1993 1994 1995
Cash 43 52 56
Accounts Receivable 306 411 606
Inventory 337 432 587
Current Assets 686 895 1249
Property 233 262 388
Total Assets 919 1157 1637

Notes Payable, bank 60 390

Notes Payable, Holz 100 100
Notes Payable, trade 127
Accounts Payable 213 340 376
Accrued Expenses 42 45 75
Term Loan, current portion 20 20 20
Current Liabilities 275 565 1088
Term Loan 140 120 100
Note 100
Total Liabilities 415 785 1188
Net Worth 504 372 449
Total Liabilities 919 1157 1637
0

0
(1) Base Scenario:

Projection Assumptions Average 1996 1997 1998 1999

93-95
Sales *) 5,500 6,600 7,590 8,349
Sales growth rate *) 24.50% 21.70% 20% 15% 10%
CGS/Sales 75.64% 75.00% 74.00% 74.00% 74.00%
Op Exp/Sales 20.91% 20.40% 20.00% 20.00% 20.00%
Tax rate 35% 35% 35% 35%

AR DOH (AR/Daily Sales) 43.44 43.4 43.4 43.4 43.4

Inv DOH (Inv/Daily Cogs) 59.43 59.4 59.4 59.4 59.4
NFATO (@Sales) 12.48 12.5 12.5 12.5 12.5
AP DOH (AP/Daily
Purchases) 39.67 10 10 10 10

Acc Exp/Sales 1.46% 1.46% 1.46% 1.46% 1.46%

*) Sales 1996 to 2000 grow at the Sales growth rates as shown above. Sales continue to grow at 5% p.a. after 2000.

(2) Alternative Scenario 1: As per the Base Scenario. But now sales growth rate is nil (0) for
the period after 2000 (Sales in 2002 = Sales in 2001 = Sales in 2000).

(3) Alternative Scenario 2: AP DOH is now 45 days (not 10 days as in the Base Scenario), meaning Clarkson is not able
to improve its cost structure and operating margin. Everything else is as in the Base Scenario.

Projection Assumptions Average 1996 1997 1998 1999

93-95
Sales 5,500 6,600 7,590 8,349
Sales growth rate 24.50% 21.70% 20% 15% 10%
CGS/Sales 75.64% 75.60% 75.60% 75.60% 75.60%
Op Exp/Sales 20.91% 20.90% 20.90% 20.90% 20.90%
Tax rate 35% 35% 35% 35%

AR DOH (AR/Daily Sales) 43.44 43.4 43.4 43.4 43.4

Inv DOH (Inv/Daily Cogs) 59.43 59.4 59.4 59.4 59.4
NFATO (@Sales) 12.48 12.5 12.5 12.5 12.5
AP DOH (AP/Daily
39.67 45 45 45 45
Purchases)
Acc Exp/Sales 1.46% 1.46% 1.46% 1.46% 1.46%
 2000

8,766
5%
74.00%
20.00%
35%

43.4
59.4
12.5

10

1.46%
ow at 5% p.a. after 2000.

meaning Clarkson is not able

2000

8,766
5%
75.60%
20.90%
35%

43.4
59.4
12.5

45

1.46%