Exhibit 1 Financial Statements for Tire City, Inc.

For years ending 12/31 1993 1994 1995

INCOME STATEMENT

Net sales $ 16,230 $ 20,355 $ 23,505 Proportion of COGS to Sales

Cost of sales 9,430 11,898 13,612 58.10% 58.45%
Gross Profit 6,800 8,457 9,893
Proportion of SGA to Sales
Selling, general, and administrative expenses5,195 6,352 7,471 32.01% 31.21%
Depreciation 160 180 213
Net interest expense 119 106 94
Pre-tax income 1,326 1,819 2,115 Proportion of Income Taxes to Pre Tax Income
Income taxes 546 822 925 41.18% 45.19%
Net income $ 780 $ 997 $ 1,190
Proportion of PAT paid as Dividends
Dividends $ 155 $ 200 $ 240 19.87% 20.06%

BALANCE SHEET

Assets Proportion of Cash to Sales

Cash balances $ 508 $ 609 $ 706 3.13% 2.99%
Accounts receivable 2,545 3,095 3,652
Inventories 1,630 1,838 2,190 Proportion of Account Receivables to Sales
Total current assets 4,683 5,542 6,548 15.68% 15.21%

Gross plant & equipment 3,232 3,795 4,163

Accumulated depreciation 1,335 1,515 1,728
Net plant & equipment 1,897 2,280 2,435

Total assets $ 6,580 $ 7,822 $ 8,983

Liabilities
Current maturities $ 125 $ 125 $ 125
Accounts payable 1,042 1,325 1,440
Accrued expenses 1,145 1,432 1,653
Total current liabilities 2,312 2,882 3,218

Long-term debt 1,000 875 750

Common stock 1,135 1,135 1,135

Retained earnings 2,133 2,930 3,880
Total shareholders' equity 3,268 4,065 5,015

Total liabilities $ 6,580 $ 7,822 $ 8,983

3
 Proportion of COGS to Sales Average
57.91% 58.16%

Proportion of SGA to Sales Average

31.78% 31.67%

Proportion of Income Taxes to Pre Tax Income Average

43.74% 43.37%

Proportion of PAT paid as Dividends Average

20.17% 20.03%

Proportion of Cash to Sales Average

3.00% 3.04%

Proportion of Account Receivables to Sales Average

15.54% 15.47%

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 1993 1994 1995
Profitability
Return on Sales 4.81% 4.90% 5.06%
Return on Capital 18.28% 20.18% 20.64%
Return on Equity 23.87% 24.53% 23.73%

Liquidity
Current Ratio 2.03 1.92 2.03
Quick Ratio 1.32 1.29 1.35

Leverage
Assets / Equity 2.01 1.92 1.79
Debt / Total Capital 26.36% 20.24% 15.18%
Interest Coverage 12.14 18.16 23.50

Activity Ratios
Sales / Assets 2.47 2.60 2.62
Days Receivable 57.24 55.50 56.71
Days Inventory 63.09 56.39 58.72
Days Payable NA 39.95 37.64

Purchases Data NA 12,106 13,964

 In Thousands of Dollars

INCOME STATEMENT ASSUMPTIONS 1996 1997

Net Sales 20% Growth Per Annum 28,206 33,847

Cost of Sales 58.2% of Sales 16,416 19,699
Gross Profit 11,790 14,148

Selling, General &

Administrative Expenses 31.7% of Sales 8,941 10,730 Average Relationship with Sales
Depreciation Assumption Given in the Case 213 333
Net Interest Expense Reconciled 129 116
Pre Tax Income 2,507 2,970

Income Taxes 43.4% of PBT 1,088 1,289 Average Tax Rate

Net Income 1,419 1,681

Dividends 20% of PAT 284 336 Average Dividends Payout Ratio

BALANCE SHEET 1996 1997

ASSETS
Cash Balances 3% of Sales 846 1,015 Average of Relationship with Sales
Accounts Receivables 15.5% of Sales 4,372 5,246 Average Realtionship with Sales
Inventories Assumptions Given 1,625 3,146
Total Current Assets 6,843 9,408

Gross Plant & Equipment Assumptions Given 6,163 6,563

Accumulated Depreciation 1996, Increase of $213
1997, Increase of $213 plus Increase in Dep
5% of $2,400 1,941 2,274 333
Net Plant & Equipment 4,222 4,289

Total Assets 11,065 13,697

LIABILITIES
Current Maturities Constant 125 125
Bank Debt Balancing Figure 414 1,077
Accounts Payable 7% of Sales 1,777 2,132
Accrued Expenses 7% of Sales 1,974 2,369
Total Current Liabilities 4,290 5,704

Long Term Debt Decreases by $125 625 500

Common Stock Constant 1,135 1,135

Retained Earnings Beginning RE + PAT + Dividends 5,015 6,360
Total Shareholders Equity 6,150 7,495

Total Liabilities & Equity 11,065 13,698

nship with Sales

nds Payout Ratio

tionship with Sales

nship with Sales

Total Depreciation
for 1997
2,274
 1996 1997
Profitability
Return on Sales 5.03% 4.97%
Return on Capital 22.85% 22.47%
Return on Equity 23.07% 22.43%

Liquidity
Current Ratio 1.59 1.65
Quick Ratio 1.22 1.10

Leverage
Assets / Equity 1.80 1.83
Debt / Total Capital 11.07% 7.82%
Interest Coverage 20.43 26.60

Activity Ratios
Sales / Assets 2.55 2.47
Days Receivable 56.58 56.58
Days Inventory 36.13 58.29
Days Payable 40.92 34.07

Purchases 15,851 22,845