Timber Flooring Financial Data Student Clean 11-2-2021

LIQUIDITY RATIOS:
Current Ratio
Year
Company: 2021 2020 2019 2018
TF 2.5 3.3 2.9 3.4
Highes 1.2 1.3 1.3 1.4
Home Warehouse 1.4 1.3 1.5 1.3
MS Stockholdings 2.3 2.2 1.1 -
Workers Firstource 1.9 2.6 3.2 4.2
Quick Ratio
2021 2020 2019 2018
TF 0.3 0.9 0.8 1.0
Highes 0.1 0.2 0.2 0.2
Workers Firstsource 1.1 1.6 2.3 3.2
EFFICIENCY RATIOS:
Inventory Turnover
2021 2020 2019
TF 2.2 2.6 2.7

Highes 3.9 3.9 3.9
Home Warehouse 4.8 4.7 4.4
MS Stockholdings 9.7 8.8 16.0
Workers Firstsource 9.5 10.1 9.2
Fixed Asset Turnover

2021 2020 2019
TF 11.0 17.6 17.7

Highes 2.5 2.3 2.3
Total Asset Turnover

2021 2020 2019
TF 2.3 2.6 2.5

Highes 1.6 1.5 1.5
DEBT MANAGEMENT RATIOS:

Total Debt to Equity
2021 2020 2019 2018
TF 0.5 0.4 0.5 0.4
Highes 1.8 1.4 1.0 0.9

Workers Firstsource 13.3 32.6 10.5 3.9
Times Interest Earned

2021 2020 2019 2018
TF - - - -
Highes 8.7 8.4 8.8 10.7
Home Warehouse 12.9 12.3 11.0 11.0

MS Stockholdings 0.2 (4.7) (20.9) -
Workers Firstsource 1.6 0.5 (0.2) (1.5)
P/E Ratio
2021 2020 2019 2018
TF 28.7 37.1 31.4 19.0
Highes 32.1 29.3 24.8 17.9
Home Warehouse 27.8 25.6 27.1 22.1

MS Stockholdings - - - -
Workers Firstsource 37.1 - - -
Note: Missing or Nonsensical ratios were replaced with "-" E.g. Negative P/E Ratios were replaced with -
PROFITABILITY RATIOS:
Gross Margin
Year
Company: 2021 2020 2019 2018
TF 39.9% 41.1% 38.0% 35.3%
Highes 34.6% 34.3% 34.6% 35.1%
Home Warehouse 34.2% 34.6% 34.5% 34.3%
MS Stockholdings 22.9% 22.8% 22.2% -
Workers Firstource 22.3% 21.5% 20.0% 20.3%
Net Profit Margin

2021 2020 2019 2018
TF 6.1% 7.7% 5.8% 3.9%
Highes 4.3% 3.9% 3.7% 4.1%
Home Warehouse 6.8% 6.1% 5.5% 4.9%
MS Stockholdings -0.4% -1.5% -5.5% -
Workers Firstsource 1.1% -2.9% -5.3% -8.3%
Operating Margin
2021 2020 2019 2018
TF 9.9% 12.6% 9.6% 6.2%
Highes 7.8% 7.0% 6.5% 7.3%

Home Warehouse 11.6% 10.4% 9.5% 8.6%
MS Stockholdings 0.1% -2.0% -7.8% -
Workers Firstsource 3.1% 3.2% -0.8% -4.8%
Return on Assets
2021 2020 2019
TF 13.7% 19.9% 14.7%
Highes 7.0% 5.9% 5.5%

Home Warehouse 13.2% 11.1% 9.6%
MS Stockholdings -1.3% -4.8% -29.5%
Workers Firstsource 3.3% -8.0% -10.9%
Return on Equity
2021 2020 2019

TF 19.8% 28.5% 20.9%
Highes 17.8% 12.9% 10.6%

Home Warehouse 35.5% 25.4% 21.1%
MS Stockholdings -3.5% -18.0% -246.7%
Workers Firstsource 65.3% -134.5% -76.2%
TF had $84,000 of interest expense in 2021. This amount was excluded from the analysis as it was deemed immaterial.
egative P/E Ratios were replaced with -

Note: Ratios requiring prior year data from years not presented were dropped
Formulas:
Current Ratio Current Assets / Current Liabilities
Quick Ratio (Current Assets - Inventory) / Current Liabilities
Gross Margin (Revenue - COGS)/ Revenue
Net Profit Margin Net Income / Revenue
Inventory Turnover Ratio (COGS/((Beg. Inventory + End Inventory)/2)
Fixed Asset Turnover Revenue / Average Fixed Assets
Operating Margin Earnings Before Interest and Taxes (EBIT) / Sales
Return on Assets Net Income / Average Total Assets
Return on Equity Net Income / Average Total Equity
Total Asset Turnover Revenue / Average Total Assets

Total Debt to Equity Total Liabilities/ Total Equity
Times Interest Earned Earnings Before Interest and Taxes (EBIT) / Interest Expense
P/E Ratio Market Value Per Share /Diluted EPS
Timber Flooring LLC, Inc.
Consolidated Balance Sheets

(in thousands, except share data)
Year End December 31
Account Titles: 2021 2020
Assets:
Current Assets:
Cash and Cash Equivalents $20,287 $80,634
Merchandise Inventories 314,371 252,428
Prepaid Expenses 5,575 6,229
Refundable Income Taxes 5,575
Deferred Tax Asset 8,901
Other Current Assets (1) 17,044 12,916
Total Current Assets 357,277 352,207
Property and Equipment, net 124,867 65,947
Goodwill 9,693 9,693
Other Assets 1,625 1,712
Total Assets 493,462 429,559
Liabilities and Stockholders' Equity

Current Liabilities:
Accounts Payable 80,303 56,327
Customer Deposits and Store Credits 34,943 22,377
Accrued Compensation 3,693 11,709
Sales and Income Tax Liabilities 7,472 4,878
Other Current Liabilities 17,836 11,709
Total Current Liabilities 144,247 107,000
Deferred Rent 6,603 4,169
Deferred Tax Liability 10,558 9,061
Total Liabilities 161,408 120,230
Stockholders' Equity:
Common Stock ($0.001 par value; 35,000,000 shares authorized;

27,069,307 and 27,557,570 shares outstanding, respectively) 30 30
Treasury Stock, at cost (2,816,780 and 2,133,307 shares, respectively) (138,692) (85,382)
Additional Capital 177,479 164,581
Retained Earnings 294,033 230,662
Accumulated Other Comprehensive Loss (796) (562)
Total Stockholders' Equity 332,054 309,329
Total Liabilities and Stockholders' Equity 493,462 429,559
Number of shares outstanding 27,557,570 27,069,307
Market price per share 66.31 102.89
Consolidated Statements of Income (Loss)

Income Statement 2021 2020
Net Sales $1,047,419 $1,000,240
Cost of Sales 629,252 589,257
Gross Profit 418,167 410,983
Selling, General and Administrative Expenses 314,094 284,960
Operating (Loss) Income 104,073 126,023
Other Expense (Income) 490* (442)
(Loss) Income Before Income Taxes 103,583 126,465
Income Tax (Benefit) Expense 40,212 49,070
Net (Loss) Income 63,371 77,395
Net (Loss) Income per Common Share Basic $2.32 $2.82
Net (Loss) Income per Common Share Diluted $2.31 $2.77
Weighted Average Common Shares Outstanding:
Basic 27,264,882 27,484,790
Diluted 27,485,852 27,914,322
* Per the financial statement footnotes, this included $84,000 total of interest expense.
Consolidated Statement of Cash Flows

(in thousands, except share data) Year End December 31
2021 2020
Cash Flows from Operating Activities:
Net Income $63,371 $77,395
Adjustments to Reconcile Net Income to Net Cash Provided by
Operating Activities:
Depreciation and Amortization 14,714 11,666
Deferred Income Taxes (152) (846)
Stock-Based Compensation Expense 5,593 5,974
Changes in Operating Assets and Liabilities:
Merchandise Inventories (62,140) (45,834)
Accounts Payable 21,478 (15)
Customer Deposits and Store Credits 12,623 (3,354)
Prepaid Expenses and Other Current Assets (1,836) (257)
Other Assets and Liabilities 3,436 8,271
Net Cash Provided by Operating Activities 57,087 53,000
Cash Flows from Investing Activities:
Purchases of Property and Equipment (71,138) (28,585)
Net Cash Used in Investing Activities (71,138) (28,585)
Cash Flows from Financing Activities:
Payments for Stock Repurchases (53,310) (34,830)
Proceeds from the Exercise of Stock Options 3,150 10,255
Excess Tax Benefit from Stock-Based Compensation 4,004 17,132
Borrowings on Revolving Credit Facility 0 0
Payments on Revolving Credit Facility 0 0
Net Cash Used in Financing Activities (46,156) (7,443)
Effect of Exchange Rates on Cash and Cash Equivalents (140) (505)
Net (Decrease) Increase in Cash and Cash Equivalents (60,347) 16,467
Cash and Cash Equivalents, Beginning of Year 80,634 64,167
Cash and Cash Equivalents, End of Year 20,287 80,634
r End December 31
2019 2018
$64,167 $61,675
206,704 164,139
5,168 4,292
12,106 7,863
288,145 237,969
47,764 44,147
9,693 9,693
1,785 3,045
347,387 294,854
55,110 38,161
25,747 18,120
7,969 2,509
4,314 5,092
7,887 6,839
101,027 70,721
3,653 3,328
8,166 5,721
112,846 79,770
29 28
(50,552) (1,116)
131,724 110,163
153,267 106,203
73 (194)
234,541 215,084
347,387 294,854
27,557,570 27,894,543
52.83 17.66
r End December 31
2019 2018
$813,327 $681,587
504,542 440,912
308,785 240,675
230,439 198,237
78,346 42,438
(140) (587)
78,486 43,025
31,422 16,769
47,064 26,256
$1.71 $0.95
$1.68 $0.93
27,448,333 27,706,629
28,031,453 28,379,693
r End December 31
2019 2018
$47,064 $26,256
9,957 8,328
160 2,402
3,997 4,005
(42,712) (9,197)
16,756 4,467
7,626 6,104
(2,835) (1,943)
7,256 3,679
47,269 44,101
(13,376) (16,988)
(13,376) (21,713)
(49,436) (249)
10,454 3,070
7,131 1,690
0 0
0 0
(31,851) 4,511
450 (54)
2,492 26,845
61,675 34,830
64,167 61,675
VERTICAL ANALYSIS
2021 2020 2019
Account Titles:
Cash and Cash Equivalents 4.11% 18.77% 18.47%
Merchandise Inventories 63.71% 58.76% 59.50%
Prepaid Expenses 1.13% 1.45% 1.49%
Refundable Income Taxes 1.13% 0.00% 0.00%
Deferred Tax Asset 1.80% 0.00% 0.00%
Other Current Assets (1) 3.45% 3.01% 3.48%
Total Current Assets 72.40% 81.99% 82.95%
Property and Equipment, net 25.30% 15.35% 13.75%
Goodwill 1.96% 2.26% 2.79%
Other Assets 0.33% 0.40% 0.51%
Total Assets 100.00% 100.00% 100.00%

Accounts Payable 16.27% 13.11% 15.86%
Customer Deposits and Store Credits 7.08% 5.21% 7.41%
Accrued Compensation 0.75% 2.73% 2.29%
Sales and Income Tax Liabilities 1.51% 1.14% 1.24%
Other Current Liabilities 3.61% 2.73% 2.27%
Total Current Liabilities 29.23% 24.91% 29.08%
Deferred Rent 1.34% 0.97% 1.05%
Deferred Tax Liability 2.14% 2.11% 2.35%
Total Liabilities 32.71% 27.99% 32.48%
Common Stock ($0.001 par value; 35,000,000 shares authorized;

27,069,307 and 27,557,570 shares outstanding, respectively) 0.01% 0.01% 0.01%
Treasury Stock, at cost (2,816,780 and 2,133,307 shares, respectively) -28.11% -19.88% -14.55%
Additional Capital 35.97% 38.31% 37.92%
Retained Earnings 59.59% 53.70% 44.12%
Accumulated Other Comprehensive Loss -0.16% -0.13% 0.02%
Total Stockholders' Equity 67.29% 72.01% 67.52%
Total Liabilities and Stockholders' Equity 100.00% 100.00% 100.00%
Income Statement 2021 2020 2019

Net Sales 100.00% 100.00% 100.00%
Cost of Sales 60.08% 58.91% 62.03%
Gross Profit 39.92% 41.09% 37.97%
Selling, General and Administrative Expenses 29.99% 28.49% 28.33%
Operating (Loss) Income 9.94% 12.60% 9.63%
Other Expense (Income) #VALUE! -0.04% -0.02%
(Loss) Income Before Income Taxes 9.89% 12.64% 9.65%
Income Tax (Benefit) Expense 3.84% 4.91% 3.86%
Net (Loss) Income 6.05% 7.74% 5.79%
HORIZONTAL ANALYSIS (CY = Current year)
2018 CY - CY-1 in $ CY - CY-1 in %
Account Titles:
20.92% Cash and Cash Equivalents (60,347) -74.84%
55.67% Merchandise Inventories 61,943 24.54%
1.46% Prepaid Expenses (654) -10.50%
0.00% Refundable Income Taxes 5,575 -
0.00% Deferred Tax Asset 8,901 -
2.67% Other Current Assets (1) 4,128 31.96%
80.71% Total Current Assets 5,070 1.44%
14.97% Property and Equipment, net 58,920 89.34%
3.29% Goodwill 0 0.00%
1.03% Other Assets (87) -5.08%
100.00% Total Assets 63,903 14.88%

12.94% Accounts Payable 23,976 42.57%
6.15% Customer Deposits and Store Credits 12,566 56.16%
0.85% Accrued Compensation (8,016) -68.46%
1.73% Sales and Income Tax Liabilities 2,594 53.18%
2.32% Other Current Liabilities 6,127 52.33%
23.99% Total Current Liabilities 37,247 34.81%
1.13% Deferred Rent 2,434 58.38%
1.94% Deferred Tax Liability 1,497 16.52%
27.05% Total Liabilities 41,178 34.25%
Common Stock ($0.001 par value; 35,000,000

shares authorized; 27,069,307 and 27,557,570
0.01% shares outstanding, respectively) 0 0.00%
Treasury Stock, at cost (2,816,780 and 2,133,307
-0.38% shares, respectively) (53,310) 62.44%
37.36% Additional Capital 12,898 7.84%
36.02% Retained Earnings 63,371 27.47%
-0.07% Accumulated Other Comprehensive Loss (234) 41.64%
72.95% Total Stockholders' Equity 22,725 7.35%
100.00% Total Liabilities and Stockholders' Equity 63,903 14.88%
2018 CY - CY-1 in $ CY - CY-1 in %

100.00% Net Sales 47,179 4.72%
64.69% Cost of Sales 39,995 6.79%
35.31% Gross Profit 7,184 1.75%
29.08% Selling, General and Administrative Expenses 29,134 10.22%
6.23% Operating (Loss) Income (21,950) -17.42%
-0.09% Other Expense (Income) #VALUE! #VALUE!
6.31% (Loss) Income Before Income Taxes (22,882) -18.09%
2.46% Income Tax (Benefit) Expense (8,858) -18.05%
3.85% Net (Loss) Income (14,024) -18.12%
CY-1 - CY-2 in $ CY-1 - CY-2 in % CY-2 - CY-3 in $ CY-2 - CY-3 in %
16,467 25.66% 2,492 4.04%

45,724 22.12% 42,565 25.93%
1,061 20.53% 876 20.41%
0 - 0 -
0 - 0 -
810 6.69% 4,243 53.96%
64,062 22.23% 50,176 21.09%
18,183 38.07% 3,617 8.19%
0 0.00% 0 0.00%
(73) -4.09% (1,260) -41.38%
82,172 23.65% 52,533 17.82%
1,217 2.21% 16,949 44.41%

(3,370) -13.09% 7,627 42.09%
3,740 46.93% 5,460 217.62%
564 13.07% (778) -15.28%
3,822 48.46% 1,048 15.32%
5,973 5.91% 30,306 42.85%
516 14.13% 325 9.77%
895 10.96% 2,445 42.74%
7,384 6.54% 33,076 41.46%
1 3.45% 1 3.57%
(34,830) 68.90% (49,436) 4429.75%

32,857 24.94% 21,561 19.57%
77,395 50.50% 47,064 44.32%
(635) -869.86% 267 -137.63%
74,788 31.89% 19,457 9.05%
82,172 23.65% 52,533 17.82%

186,913 22.98% 131,740 19.33%
84,715 16.79% 63,630 14.43%
102,198 33.10% 68,110 28.30%
54,521 23.66% 32,202 16.24%
47,677 60.85% 35,908 84.61%
(302) 215.71% 447 -76.15%
47,979 61.13% 35,461 82.42%
17,648 56.16% 14,653 87.38%
30,331 64.45% 20,808 79.25%
Highes, Inc.

(in millions $, except share data)
Account Titles: 2021 2020 2019
Assets:
Current assets:
Cash and cash equivalents $391 $541 $1,014
Short-term investments 185 125 286
Merchandise inventory - net 9,127 8,600 8,355
Deferred income taxes - net 252 217 183
Other current assets 341 301 234
Total current assets 10,296 9,784 10,072
Property, less accumulated depreciation 20,834 21,477 21,970
Long-term investments 279 271 504
Other assets 1,323 1,134 1,013
Total assets 32,732 32,666 33,559
Liabilities and Stockholders Equity:

Current liabilities:
Short-term borrowings 386 0 0
Current maturities of long-term debt 49 47 592
Accounts payable 5,008 4,657 4,352
Accrued compensation and employee benefits 785 670 613
Deferred revenue 892 824 801
Other current liabilities 1,756 1,510 1,533
Total current liabilities 8,876 7,708 7,891
Long-term debt, excluding current maturities 10,086 9,030 7,035
Deferred income taxes - net 291 455 531
Deferred revenue - extended protection plans 730 715 704
Other liabilities 896 901 865
Total liabilities 20,879 18,809 17,026
Shareholders' Equity:
Preferred stock - $5 par value, none issued 0 0 0
Common stock - $.50 par value 515 555 621
Capital in excess of par value 0 26 14
Retained earnings 11,355 13,224 15,852
Accumulated other comprehensive loss (17) 52 46
Total shareholders' equity 11,853 13,857 16,533
Total liabilities and shareholders' equity 32,732 32,666 33,559
Number Shares Outstanding 960,000,000 1,030,000 1,241,000
Market Price per Share $68.80 $49.55 $35.52
Consolidated Statement of Income

(in millions, except share data) Year End December 31
2021 2020 2019
Income Statement:
Net sales $53,417 $50,521 $50,208
Cost of sales 34,941 33,194 32,858
Gross margin 18,476 17,327 17,350
Expenses:
Selling, general and administrative 12,865 12,244 12,593
Depreciation 1,462 1,523 1,480
Earnings before interest and taxes 4,149 3,560 3,277
Interest - net 476 423 371
Pre-tax earnings 3,672 3,137 2,906
Income tax provision 1,387 1,178 1,067
Net earnings $2,286 $1,959 $1,839
rounding leads to
footing error
Basic earnings per common share $2.14 $1.69 $1.43

Diluted earnings per common share $2.14 $1.69 $1.43
Cash dividends per share $0.70 $0.62 $0.53
Consolidated Statements of Cash Flows

(in millions, except share data)
2021 2020 2019
Cash flows from operating activities:
Net earnings $2,286 $1,959 $1,839
Adjustments to reconcile net earnings to net cash
provided by operating activities:
Depreciation and amortization 1,562 1,623 1,579
Deferred income taxes (162) (140) 54
Loss on property and other assets - net 64 83 456
Loss on equity method investments 52 48 12
Share-based payment expense 100 100 107
Changes in operating assets and liabilities:
Merchandise inventory - net (396) (244) (33)
Other operating assets (5) (87) 125
Accounts payable 291 303 (5)
Other operating liabilities 319 117 215
Net cash provided by operating activities 4,111 3,762 4,349
Cash flows from investing activities:
Purchases of investments (759) (1,444) (1,433)
Proceeds from sale/maturity of investments 709 1,837 2,120
Capital expenditures (940) (1,211) (1,829)
Contributions to equity method investments - net (173) (219) (232)
Proceeds from sale of property and other long-term ass 75 130 52
Acquisition of business - net (203) 0 (100)
Other - net 5 4 (15)
Net cash used in investing activities (1,286) (903) (1,437)
Cash flows from financing activities:
Net change in short-term borrowings 386 0 0
Net proceeds from issuance of long-term debt 985 1,984 993
Repayment of long-term debt (47) (591) (37)
Proceeds from issuance of common stock under
share-based payment plans 165 349 100
Cash dividend payments (733) (704) (647)
Repurchase of common stock (3,710) (4,393) (2,937)
Other - net (15) 22 (21)
Net cash used in financing activities (2,969) (3,333) (2,549)
Effect of exchange rate changes on cash (6) 1 (1)
Net increase/(decrease) in cash and cash equivalents
(150) (473) 362
Cash and cash equivalents, beginning of year 541 1,014 652
Cash and cash equivalents, end of year $391 $541 $1,014
er 31
2018
$652
471
8,321
193
330
9,967
22,089
1,008
635
33,699
0
36
4,351
667
707
1,358
7,119
6,537
467
631
833
15,587
0
677
11
17,371
53
18,112
33,699
1,354,000
$25.38
er 31
2018
$48,815
31,663
17,152 5,611
4,149
12,006
1,586
3,560
332
3,228
1,218
$2,010
$1.42
$1.42
$0.42
er 31
2018
$2,010
1,684
(133)
103
4
115
(64)
(146)
60
219
3,852
(2,605)
1,822
(1,329)
(83)
25
0
(14)
(2,184)
0
1,985
(552)
104
(571)
(2,618)
1
(1,651)
3
20
532
$652
Consolidated Statements of Earnings - USD ($)
$ in Millions Jan. 30, 2015
Consolidated Statements of Earnings
Net sales $56,223
Cost of sales 36,665
Gross margin 19,558

Expenses:
Depreciation 1,485
Interest - net 516
Total expenses 15,282
Pre-tax earnings
4,276
Income tax provision 1,578
Net earnings $2,698
Basic earnings per common share $2.71
Diluted earnings per common share 2.71
Cash dividends per share $0.87
2011
GM 34.56%
PM 3.66%
#DIV/0!
Jan. 31, 2014 Feb. 01, 2013 Feb. 03, 2012
$53,417 $50,521 $50,208

34,941 33,194 32,858
18,476 17,327 17,350
1,462 1,523 1,480

476 423 371
14,803 14,190 14,444
3,673 3,137 2,906

1,387 1,178 1,067
$2,286 $1,959 $1,839
$2.14 $1.69 $1.43
2.14 $1.69 $1.43
$0.70 $0.62 $0.53
2012 2013 2014

34.30% 34.59% 34.79%
3.88% 4.28% 4.80%
Vertical Analysis
2021 2020 2019

Account Titles:
Cash and cash equivalents 1.19% 1.66% 3.02%
Short-term investments 0.57% 0.38% 0.85%
Merchandise inventory - net 27.88% 26.33% 24.90%
Deferred income taxes - net 0.77% 0.66% 0.55%
Other current assets 1.04% 0.92% 0.70%
Total current assets 31.46% 29.95% 30.01%
Property, less accumulated depreciation 63.65% 65.75% 65.47%

Long-term investments 0.85% 0.83% 1.50%
Other assets 4.04% 3.47% 3.02%
Total assets 100.00% 100.00% 100.00%

Short-term borrowings 1.18% 0.00% 0.00%
Current maturities of long-term debt 0.15% 0.14% 1.76%
Accounts payable 15.30% 14.26% 12.97%
Accrued compensation and employee benefits 2.40% 2.05% 1.83%

Deferred revenue 2.73% 2.52% 2.39%
Other current liabilities 5.36% 4.62% 4.57%
Total current liabilities 27.12% 23.60% 23.51%
Long-term debt, excluding current maturities 30.81% 27.64% 20.96%

Deferred income taxes - net 0.89% 1.39% 1.58%
Deferred revenue - extended protection plans 2.23% 2.19% 2.10%

Other liabilities 2.74% 2.76% 2.58%
Total liabilities 63.79% 57.58% 50.73%
Preferred stock - $5 par value, none issued 0.00% 0.00% 0.00%

Common stock - $.50 par value 1.57% 1.70% 1.85%
Capital in excess of par value 0.00% 0.08% 0.04%
Retained earnings 34.69% 40.48% 47.24%
Accumulated other comprehensive loss -0.05% 0.16% 0.14%

Total shareholders' equity 36.21% 42.42% 49.27%
Total liabilities and shareholders' equity 100.00% 100.00% 100.00%

Net sales 100% 100% 100%
Cost of sales 65% 66% 65%
Gross margin 35% 34% 35%
Expenses:
Selling, general and administrative 24% 24% 25%
Depreciation 3% 3% 3%
Earnings before interest and taxes 8% 7% 7%
Interest - net 1% 1% 1%
Pre-tax earnings 7% 6% 6%
Income tax provision 3% 2% 2%
Net earnings 4% 4% 4%
Horizontal Analysis (CY = Current Year)
2018 CY- CY-1 in $ CY- CY-1 in %

Account Titles:
1.93% Cash and cash equivalents (150) -27.73%
1.40% Short-term investments 60 48.00%
24.69% Merchandise inventory - net 527 6.13%
0.57% Deferred income taxes - net 35 16.13%
0.98% Other current assets 40 13.29%
29.58% Total current assets 512 5.23%
65.55% Property, less accumulated depreciation (643) -2.99%

2.99% Long-term investments 8 2.95%
1.88% Other assets 189 16.67%
100.00% Total assets 66 0.20%

0.00% Short-term borrowings 386
0.11% Current maturities of long-term debt 2 4.26%
12.91% Accounts payable 351 7.54%
Accrued compensation and employee
1.98% benefits 115 17.16%
2.10% Deferred revenue 68 8.25%
4.03% Other current liabilities 246 16.29%
21.13% Total current liabilities 1,168 15.15%
Long-term debt, excluding current
19.40% maturities 1,056 11.69%
1.39% Deferred income taxes - net (164) -36.04%
Deferred revenue - extended protection
1.87% plans 15 2.10%
2.47% Other liabilities (5) -0.55%
46.25% Total liabilities 2,070 11.01%
Preferred stock - $5 par value, none
0.00% issued 0 -
2.01% Common stock - $.50 par value (40) -7.21%
0.03% Capital in excess of par value (26) -100.00%
51.55% Retained earnings (1,869) -14.13%
0.16% Accumulated other comprehensive loss (69) -132.69%

53.75% Total shareholders' equity (2,004) -14.46%
100.00% Total liabilities and shareholders' equity 66 0.20%
2018 Income Statement CY- CY-1 in $ CY- CY-1 in %

100% Net sales 2,896 5.73%
65% Cost of sales 1,747 5.26%
35% Gross margin 1,149 6.63%
Expenses:
25% Selling, general and administrative 621 5.07%
3% Depreciation (61) -4.01%
7% Earnings before interest and taxes 589 16.54%
1% Interest - net 53 12.53%
7% Pre-tax earnings 535 17.05%
2% Income tax provision 209 17.74%
4% Net earnings 327 16.69%
CY-1-CY-2 in $ CY-1-CY-2 in % CY-2-CY-3 in $ CY-2-CY-3 in %
(473) -46.65% 362 55.52%

(161) -56.29% (185) -39.28%
245 2.93% 34 0.41%
34 18.58% (10) -5.18%
67 28.63% (96) -29.09%
(288) -2.86% 105 1.05%
(493) -2.24% (119) -0.54%

(233) -46.23% (504) -50.00%
121 11.94% 378 59.53%
(893) -2.66% (140) -0.42%
(545) -92.06% 556 1544.44%

305 7.01% 1 0.02%
57 9.30% (54) -8.10%

23 2.87% 94 13.30%
(23) -1.50% 175 12.89%
(183) -2.32% 772 10.84%
1,995 28.36% 498 7.62%

(76) -14.31% 64 13.70%
11 1.56% 73 11.57%
36 4.16% 32 3.84%
1,783 10.47% 1,439 9.23%
0 - 0 -
(66) -10.63% (56) -8.27%
12 85.71% 3 27.27%
(2,628) -16.58% (1,519) -8.74%
6 13.04% (7) -13.21%

(2,676) -16.19% (1,579) -8.72%
(893) -2.66% (140) -0.42%
CY-1-CY-2 in $ CY-1-CY-2 in % CY-2-CY-3 in $ CY-2-CY-3 in %

313 0.62% 1,393 2.85%
336 1.02% 1,195 3.77%
(23) -0.13% 198 1.15%
(349) -2.77% 587 4.89%

43 2.91% (106) -6.68%
283 8.64% (283) -7.95%
52 14.02% 39 11.75%
231 7.95% (322) -9.98%
111 10.40% (151) -12.40%
120 6.53% (171) -8.51%
Home Warehouse

(in millions, except share data)
Year End January 31
Assets
Current Assets:
Cash and Cash Equivalents $1,929 $2,494
Receivables, net 1,398 1,395
Merchandise Inventories 11,057 10,710
Other Current Assets 895 773
Total Current Assets 15,279 15,372
Property and Equipment, at cost 39,064 38,491
Less Accumulated Depreciation and Amortization 15,716 14,422
Net Property and Equipment 23,348 24,069
Other Assets 602 473
Total Assets 40,518 41,084
Accounts Payable 5,797 5,376
Accrued Salaries and Related Expenses 1,428 1,414
Sales Taxes Payable 396 472
Deferred Revenue 1,337 1,270
Income Taxes Payable 12 22
Current Installments of Long-Term Debt 33 1,321
Other Accrued Expenses 1,746 1,587
Total Current Liabilities 10,749 11,462
Long-Term Debt, excluding current installments 14,691 9,475
Other Long-Term Liabilities 2,042 2,051
Deferred Income Taxes 514 319
Total Liabilities 27,996 23,307
STOCKHOLDERS' EQUITY
Common Stock, par value $0.05 88 88
Paid-In Capital 8,402 7,948
Retained Earnings 23,180 20,038
Accumulated Other Comprehensive Loss 46 397
Treasury Stock, at cost, 520 million shares at January 31 (19,194) (10,694)
Total Stockholders’ Equity 12,522 17,777
Total Liabilities and Stockholders' Equity 40,518 41,084
Number Shares Outstanding (in billions) 1.761 1.754
Market price per share 104.42 76.85

(in millions, except Per Share data, unless otherwise specified)
Year End January 31
2021 2020
Income Statement:
NET SALES $78,812 $74,754
Cost of Sales 51,897 48,912
GROSS PROFIT 26,915 25,842
Operating Expenses:
Selling, General and Administrative 16,122 16,508
Total Operating Expenses 17,749 18,076
OPERATING INCOME 9,166 7,766
Interest and Other (Income) Expense:
Interest and Investment Income (12) (20)
Interest Expense 711 632
Other 0 (67)
Interest and Other, net 699 545
EARNINGS BEFORE PROVISION FOR INCOME TAXES 8,467 7,221
Provision for Income Taxes 3,082 2,686
NET EARNINGS 5,385 4,535
Weighted Average Common Shares: 1,425 1,499
BASIC EARNINGS PER SHARE $3.78 $3.03

Diluted Weighted Average Common Shares 1,434 1,511
DILUTED EARNINGS PER SHARE $3.76 $3.00
Consolidated Statements Of Cash Flows

(in millions, unless otherwise specified)
Year End January 31
2021 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Earnings $5,385 $4,535
Reconciliation of Net Earnings to Net Cash Provided by Operating
Activities:
Stock-Based Compensation Expense 228 218
Gain on Sales of Investments 0 97
Changes in Assets and Liabilities, net of the effects of acquisitions:
Receivables, net (15) (143)
Merchandise Inventories (455) (350)
Other Current Assets (5) 93
Accounts Payable and Accrued Expenses 605 698
Deferred Revenue 75 121
Income Taxes Payable 119 87
Deferred Income Taxes (31) 107
Other (35) (172)
Net Cash Provided by Operating Activities 7,628 6,975
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital Expenditures, net of $165, $217 and $46 of non-cash capital
expenditures (1,389) (1,312)
Proceeds from Sales of Investments 0 0
Payments for Businesses Acquired, net (206) (170)
Proceeds from Sales of Property and Equipment 88 50
Net Cash Used in Investing Activities (1,507) (1,432)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from Short-Term Borrowings, net 0 0
Proceeds from Long-Term Borrowings, net of discount 5,222 0
Repayments of Long-Term Debt (1,289) (32)
Repurchases of Common Stock (8,546) (3,984)
Proceeds from Sales of Common Stock 241 784
Cash Dividends Paid to Stockholders (2,243) (1,743)
Other Financing Activities (37) (59)
Net Cash Used in Financing Activities (6,652) (5,034)
Change in Cash and Cash Equivalents (531) 509
Effect of Exchange Rate Changes on Cash and Cash Equivalents (34) (2)
Cash and Cash Equivalents at Beginning of Year 2,494 1,987
Cash and Cash Equivalents at End of Year 1,929 2,494
SUPPLEMENTAL DISCLOSURE OF CASH PAYMENTS MADE

FOR:
Interest, net of interest capitalized 639 617
Income Taxes 2,839 2,482
Year End January 31
2019 2018
$1,987 $545
1,245 1,085
10,325 10,625
963 1,224
14,520 13,479
38,975 38,385
14,527 13,325
24,448 25,060
1,120 1,187
430 260
40,518 40,125
4,856 4,717
1,372 1,290
391 368
1,147 1,177
23 13
30 1,042
1,557 1,515
9,376 10,122
10,758 8,707
2,146 2,135
340 272
22,620 21,236
87 86
6,966 6,556
17,246 14,995
293 445
(6,694) (3,193)
17,898 18,889
40,518 40,125
1.537 1.623
66.92 44.39
Year End January 31
2019 2018
$70,395 $67,997
46,133 44,693
24,262 23,304
16,028 15,849
1,573 1,616
17,601 17,465
6,661 5,839
(13) (15)
606 530
0 51
593 566
6,068 5,273
2,185 1,935
3,883 3,338
1,562 1,648
$2.49 $2.03
1,570 1,658
$2.47 $2.01
Year End January 31

2019 2018
$3,883 $3,338
1,682 1,718
215 201
0 0
(170) (102)
256 (355)
159 12
422 (133)
(29) 10
14 (85)
170 104
49 (61)
6,651 45,585
(1,221) (1,096)
101 0
(65) 0
56 84
(1,129) (1,012)
0 0
1,994 998
(1,028) (1,029)
(3,470) (2,608)
306 104
(1,632) (1,569)
(218) (347)
(4,048) (4,451)
1,474 (878)
(32) 2
545 1,421
1,987 545
580 579
1,865 2,067
VERTICAL ANALYSIS
2021 2020 2019

Account Titles:
Assets
Cash and Cash Equivalents 4.76% 6.07% 4.90%
Receivables, net 3.45% 3.40% 3.07%
Merchandise Inventories 27.29% 26.07% 25.48%
Other Current Assets 2.21% 1.88% 2.38%
Total Current Assets 37.71% 37.42% 35.84%
Property and Equipment, at cost 96.41% 93.69% 96.19%
Less Accumulated Depreciation and Amortization 38.79% 35.10% 35.85%

Net Property and Equipment 57.62% 58.58% 60.34%
Goodwill 3.18% 2.85% 2.76%
Other Assets 1.49% 1.15% 1.06%
Total Assets 100.00% 100.00% 100.00%
Liabilities:
Accounts Payable 14.31% 13.09% 11.98%
Accrued Salaries and Related Expenses 3.52% 3.44% 3.39%
Sales Taxes Payable 0.98% 1.15% 0.97%
Deferred Revenue 3.30% 3.09% 2.83%
Income Taxes Payable 0.03% 0.05% 0.06%
Current Installments of Long-Term Debt 0.08% 3.22% 0.07%
Other Accrued Expenses 4.31% 3.86% 3.84%
Total Current Liabilities 26.53% 27.90% 23.14%
Long-Term Debt, excluding current installments 36.26% 23.06% 26.55%

Other Long-Term Liabilities 5.04% 4.99% 5.30%
Deferred Income Taxes 1.27% 0.78% 0.84%
Total Liabilities 69.10% 56.73% 55.83%
Common Stock, par value $0.05 0.22% 0.21% 0.21%
Paid-In Capital 20.74% 19.35% 17.19%
Retained Earnings 57.21% 48.77% 42.56%
Accumulated Other Comprehensive Loss 0.11% 0.97% 0.72%
Treasury Stock, at cost, 520 million shares at
January 31 -47.37% -26.03% -16.52%
Total Stockholders’ Equity 30.90% 43.27% 44.17%
Total Liabilities and Stockholders' Equity 100.00% 100.00% 100.00%

NET SALES 100% 100% 100%
Cost of Sales 66% 65% 66%
GROSS PROFIT 34% 35% 34%
Operating Expenses:
Selling, General and Administrative 20% 22% 23%
Depreciation and Amortization 2% 2% 2%
Total Operating Expenses 23% 24% 25%
OPERATING INCOME 12% 10% 9%
Interest and Investment Income 0% 0% 0%
Interest Expense 1% 1% 1%
Other 0% 0% 0%
Interest and Other, net 1% 1% 1%
EARNINGS BEFORE PROVISION FOR
INCOME TAXES 11% 10% 9%
Provision for Income Taxes 4% 4% 3%
NET EARNINGS 7% 6% 6%
HORIZONTAL ANALYSIS (CY = Current Year)
2018 CY-CY-1 in $ CY-CY-1 in %

Account Titles:
Assets
1.36% Cash and Cash Equivalents (565) -29.29%
2.70% Receivables, net 3 0.21%
26.48% Merchandise Inventories 347 3.14%
3.05% Other Current Assets 122 13.63%
33.59% Total Current Assets (93) -0.61%
95.66% Property and Equipment, at cost 573 1.47%
Less Accumulated Depreciation and
33.21% Amortization 1,294 8.23%
62.45% Net Property and Equipment (721) -3.09%
2.96% Goodwill 119 9.23%
0.65% Other Assets 129 21.43%
100.00% Total Assets (566) -1.40%
Liabilities:
11.76% Accounts Payable 421 7.26%
3.21% Accrued Salaries and Related Expenses 14 0.98%
0.92% Sales Taxes Payable (76) -19.19%
2.93% Deferred Revenue 67 5.01%
0.03% Income Taxes Payable (10) -83.33%
2.60% Current Installments of Long-Term Debt (1,288) -3903.03%
3.78% Other Accrued Expenses 159 9.11%
25.23% Total Current Liabilities (713) -6.63%
Long-Term Debt, excluding current
21.70% installments 5,216 35.50%
5.32% Other Long-Term Liabilities (9) -0.44%
0.68% Deferred Income Taxes 195 37.94%
52.92% Total Liabilities 4,689 16.75%
0.21% Common Stock, par value $0.05 0 0.00%
16.34% Paid-In Capital 454 5.40%
37.37% Retained Earnings 3,142 13.55%
1.11% Accumulated Other Comprehensive Loss (351) -763.04%
Treasury Stock, at cost, 520 million shares at
-7.96% January 31 (8,500) 44.28%
47.08% Total Stockholders’ Equity (5,255) -41.97%
100.00% Total Liabilities and Stockholders' Equity (566) -1.40%
2018 CY-CY-1 in $ CY-CY-1 in %

100% NET SALES 4,058 5.43%
66% Cost of Sales 2,985 6.10%
34% GROSS PROFIT 1,073 4.15%
Operating Expenses:
23% Selling, General and Administrative (386) -2.34%
2% Depreciation and Amortization 59 3.76%
26% Total Operating Expenses (327) -1.81%
9% OPERATING INCOME 1,400 18.03%
0% Interest and Investment Income 8 -40.00%
1% Interest Expense 79 12.50%
0% Other 67 -100.00%
1% Interest and Other, net 154 28.26%
EARNINGS BEFORE PROVISION FOR
8% INCOME TAXES 1,246 17.26%
3% Provision for Income Taxes 396 14.74%
5% NET EARNINGS 850 18.74%
507 25.52% 1,442 264.59%

150 12.05% 160 14.75%
385 3.73% (300) -2.82%
(190) -19.73% (261) -21.32%
852 5.87% 1,041 7.72%
(484) -1.24% 590 1.54%
(105) -0.72% 1,202 9.02%

(379) -1.55% (612) -2.44%
50 4.46% (67) -5.64%
43 10.00% 170 65.38%
566 1.40% 393 0.98%
520 10.71% 139 2.95%

42 3.06% 82 6.36%
81 20.72% 23 6.25%
123 10.72% (30) -2.55%
(1) -4.35% 10 76.92%
1,291 4303.33% (1,012) -97.12%
30 1.93% 42 2.77%
2,086 22.25% (746) -7.37%
(1,283) -11.93% 2,051 23.56%

(95) -4.43% 11 0.52%
(21) -6.18% 68 25.00%
687 3.04% 1,384 6.52%
1 1.15% 1 1.16%
982 14.10% 410 6.25%
2,792 16.19% 2,251 15.01%
104 35.49% (152) -34.16%
(4,000) 59.76% (3,501) 109.65%

(121) -0.68% (991) -5.25%
566 1.40% 393 0.98%

4,359 6.19% 2,398 3.53%
2,779 6.02% 1,440 3.22%
1,580 6.51% 958 4.11%
480 2.99% 179 1.13%
(5) -0.32% (43) -2.66%
475 2.70% 136 0.78%
1,105 16.59% 822 14.08%
(7) 53.85% 2 -13.33%

26 4.29% 76 14.34%
(67) - (51) -100.00%
(48) -8.09% 27 4.77%
1,153 19.00% 795 15.08%

501 22.93% 250 12.92%
652 16.79% 545 16.33%
MS Holdings

Current assets
Cash and cash equivalents $5,806 $1,138
Restricted assets 1,076 460
Accounts receivable, net 114,448 111,285
Inventories, net 98,259 91,303
Costs in excess of billings on uncompleted contracts 7,981 7,921
Assets held for sale 0 2,363
Current income taxes receivable 4,863 0
Prepaid expenses and other current assets 11,718 9,332
Deferred income taxes 4,081 3,332
Total current assets 248,232 227,134
Property and equipment, net of accumulated depreciation 90,611 56,039
Intangible assets, net of accumulated amortization 22,536 24,789
Restricted assets 861 1,359
Other assets 1,792 2,033
Total assets 371,218 318,540

Accounts payable 72,029 64,984
Accrued expenses and other liabilities 32,957 30,528
Revolving line of credit 0 0
Income taxes payable 0 2,989
Current portion of restructuring reserve 892 1,594
Current portion of capital lease obligation 1,706 1,240
Billings in excess of costs on uncompleted contracts 592 1,599
Total current liabilities 108,176 102,934
Revolving line of credit 90,114 59,072
Long-term portion of capital lease obligation 5,955 6,011
Other long-term liabilities 7,222 7,346
Total liabilities 230,347 190,859
Preferred stock, $0.01 par value, 50,000,000 shares authorized, no shares
issued and outstanding at December 31, 2021 0 0
Common stock, $0.01 par value, 300,000,000 shares authorized,
26,176,056 and 26,112,007 shares issued and outstanding at December 31,
2021 262 261
Additional paid-in capital 147,340 144,570
Retained deficit (6,731) (17,150)
Total stockholders' equity 140,871 127,681
Total liabilities and stockholders' equity 371,218 318,540
Shares Outstanding 26,176,056 26,112,007
Market Value Per Share 19.73 14.00
Consolidated Statements of Earnings - USD ($)

(in thousands, except Per Share data, unless otherwise specified)
2021 2020
Income Statement
Net sales $1,197,037 $942,398
Cost of goods sold 922,634 727,670
Gross profit 274,403 214,728
Selling, general and administrative expenses 254,935 221,192
Depreciation expense 5,890 7,759
Amortization expense 2,236 1,470
Impairment assets held for sale 432 361
Public offering transaction-related costs 10,008 0
Restructuring expense 141 2,853
Total operating expenses 273,642 233,635
Income (loss) from operations 761 (18,907)
Other income (expenses)
Interest expense (3,793) (4,037)
Other income (expense), net 870 278
Income (loss) from continuing operations before income taxes (2,162) (22,666)
Income tax expense 2,874 (8,084)
Income (loss) from continuing operations (5,036) (14,582)
Income from discontinued operations, net of income tax expense of $201,
$243 and $52, respectively 401 49
Net income (loss) (4,635) (14,533)
Redeemable Class B Senior Preferred stock deemed dividend (1,836) 4,480
Accretion of beneficial conversion feature on Convertible Class C Preferred
stock 0 (5,000)
Income (loss) attributable to common stockholders (6,471) (24,013)
Weighted Average Common Shares Outstanding:
Weighted average common shares outstanding, basic (in shares) 18,205,892 13,153,446
Weighted average common shares outstanding, diluted (in shares) 18,205,892 13,153,446
MSper
Earnings Stockholdings
share Consolidated Statements of Cash Flows ($0.25) ($1.10)
(in thousands, execpt Per Share data, unless otherwise specified)

2021 2020
Cash flows from operating activities
Net income (loss) ($4,635) ($14,533)
Adjustments to reconcile net income (loss) to net cash from operating
activities
Depreciation expense 9,827 10,299
Amortization of intangible assets 2,236 1,470
Amortization of debt issuance costs 596 902
Deferred income taxes (1,257) (3,633)
Non-cash stock compensation expense 1,049 1,305
Impairment of assets held for sale 432 481
(Gain) loss on sale of property, equipment and real estate (60) 169
Gain on reduction of earnout liability (195) 0
Bad debt expense 1,051 2,333
Change in assets and liabilities
Accounts receivable (21,008) (27,026)
Inventories, net (16,858) (22,712)
Costs in excess of billings on uncompleted contracts (2,745) (1,288)
Prepaid expenses and other current assets (650) (784)
Current income taxes receivable/payable 50 12,110
Other assets (13) 2,314
Accounts payable (10,795) 24,821
Accrued expenses and other liabilities 3,736 1,798
Restructuring reserve (1,522) 1,125
Billings in excess of costs on uncompleted contracts 360 131
Other long-term liabilities 137 (1,525)
Net cash provided by (used in) operating activities (40,264) (12,243)
Purchases of property, equipment and real estate (7,448) (2,741)
Proceeds from sale of property, equipment and real estate 3,754 1,393
Change in restricted assets 4,204 3,069
Purchases of businesses (2,373) (5,732)
Loan to seller of Total Building Services Group, LLC 0 (850)
Net cash used in investing activities (1,863) (4,861)
Cash flows from financing activities
Proceeds from revolving line of credit 1,301,290 1,042,850
Repayments of proceeds from revolving line of credit (1,314,436) (1,004,482)
Redemption of Class B Senior Preferred stock 0 (12,372)
Proceeds from issuance of common stock, net of offering costs 55,225 0
Exercise of stock options 0 0
Excess tax benefit related to stock based compensation 0 0
Loans from related parties 401 11
Sale of Class B Senior Preferred stock 0 328
Dividends paid on Class B Senior Preferred stock 0 (10,628)
Payments of debt issuance costs (298) (555)
Holdback payment related to acquisition 0 0
Payments on capital leases (1,610) (1,311)
Secured borrowings 2 997
Net cash provided by financing activities 40,574 14,838
Net increase (decrease) in cash and cash equivalents (1,553) (2,266)
Cash and cash equivalents
Beginning of period 2,691 4,957
End of period 1,138 2,691
d December 31
2019
$2,691
3,821
90,297
73,918
5,176
6,198
0
8,682
3,562
194,345
55,076
25,865
6,511
2,202
2,013
286,012
74,231
25,277
72,218
2,939
1,513
1,329
1,239
178,746
0
5,635
16,983
9,007
210,371
0
46,534
(12,515)
34,164
286,012
26,107,231
11.93
d December 31
2019
$759,982
591,017
168,965
213,036
11,844
1,457
580
0
1,349
228,226
(59,301)
(2,842)
(2,120)
(64,263)
22,332
(41,931)
(202)
(42,133)
4,188
0
(46,321)
22,262,337
22,262,337
($1.89)
d December 31
2019
($42,133)
15,257
1,457
1,553
(5,926)
384
610
(2,609)
0
1,753
(677)
14,593
(1,165)
1,022
8,920
(5,771)
(1,162)
(699)
(462)
47
8,007
(7,001)
(1,339)
6,106
2,555
0
0
7,322
787,394
(766,544)
0
(25,000)
5,000
0
134
0
0
0
0
(1,511)
665
138
459
4,498
4,957
VERTICAL ANALYSIS
2021 2020 2019

Account Titles:
Restricted assets 0.29% 0.14% 1.34%
Accounts receivable, net 30.83% 34.94% 31.57%
Inventories, net 26.47% 28.66% 25.84%
Costs in excess of billings on uncompleted
contracts 2.15% 2.49% 1.81%
Assets held for sale 0.00% 0.74% 2.17%
Current income taxes receivable 1.31% 0.00% 0.00%
Prepaid expenses and other current assets 3.16% 2.93% 3.04%
Deferred income taxes 1.10% 1.05% 1.25%
Property and equipment, net of accumulated
depreciation 24.41% 17.59% 19.26%
Intangible assets, net of accumulated amortization 6.07% 7.78% 9.04%

Goodwill 1.94% 2.26% 2.28%
Restricted assets 0.23% 0.43% 0.77%
Other assets 0.48% 0.64% 0.70%
Total assets 100.00% 100.00% 100.00%
Liabilities:
Accrued expenses and other liabilities 8.88% 9.58% 8.84%
Revolving line of credit 0.00% 0.00% 25.25%
Income taxes payable 0.00% 0.94% 1.03%
Current portion of restructuring reserve 0.24% 0.50% 0.53%
Current portion of capital lease obligation 0.46% 0.39% 0.46%
Billings in excess of costs on uncompleted
contracts 0.16% 0.50% 0.43%
Revolving line of credit 24.28% 18.54% 0.00%
Long-term portion of capital lease obligation 1.60% 1.89% 1.97%
Other long-term liabilities 1.95% 2.31% 3.15%
Stockholders Equity:
Preferred stock, $0.01 par value, 50,000,000 shares
authorized, no shares issued and outstanding at
December 31, 2021 0.00% 0.00% 0.00%
Common stock, $0.01 par value, 300,000,000
shares authorized, 26,176,056 and 26,112,007
shares issued and outstanding at December 31,
2021 0.07% 0.08% 0.00%
Additional paid-in capital 39.69% 45.39% 16.27%
Retained deficit -1.81% -5.38% -4.38%
Total stockholders' equity 37.95% 40.08% 11.94%
Total liabilities and stockholders' equity 100.00% 100.00% 100.00%
Income Statement
Net sales 100.00% 100.00% 100.00%
Cost of goods sold 77.08% 77.21% 77.77%
Gross profit 22.92% 22.79% 22.23%
Selling, general and administrative expenses 21.30% 23.47% 28.03%
Depreciation expense 0.49% 0.82% 1.56%
Amortization expense 0.19% 0.16% 0.19%
Impairment assets held for sale 0.04% 0.04% 0.08%
Public offering transaction-related costs 0.84% 0.00% 0.00%
Restructuring expense 0.01% 0.30% 0.18%
Total operating expenses 22.86% 24.79% 30.03%
Income (loss) from operations 0.06% -2.01% -7.80%
Interest expense -0.32% -0.43% -0.37%
Other income (expense), net 0.07% 0.03% -0.28%
Income (loss) from continuing operations before
income taxes -0.18% -2.41% -8.46%
Income tax expense 0.24% -0.86% 2.94%
Income (loss) from continuing operations -0.42% -1.55% -5.52%
Income from discontinued operations, net of
income tax expense of $201, $243 and $52,
respectively 0.03% 0.01% -0.03%
Net income (loss) -0.39% -1.54% -5.54%
CY - CY1 in $ CY - CY1 in %
Account Titles:
Cash and cash equivalents 4,668 410.19%
Restricted assets 616 133.91%
Accounts receivable, net 3,163 2.84%
Inventories, net 6,956 7.62%
Costs in excess of billings on uncompleted contracts 60 0.76%

Assets held for sale (2,363) -100.00%
Current income taxes receivable 4,863 -
Prepaid expenses and other current assets 2,386 25.57%
Deferred income taxes 749 22.48%
Total current assets 21,098 9.29%
Property and equipment, net of accumulated
depreciation 34,572 61.69%
Intangible assets, net of accumulated amortization (2,253) -9.09%

Goodwill 0 0.00%
Restricted assets (498) -36.64%
Other assets (241) -11.85%
Total assets 52,678 16.54%
Liabilities:
Accounts payable 7,045 10.84%
Accrued expenses and other liabilities 2,429 7.96%
Revolving line of credit 0 -
Income taxes payable (2,989) -100.00%
Current portion of restructuring reserve (702) -44.04%
Current portion of capital lease obligation 466 37.58%
Billings in excess of costs on uncompleted contracts (1,007) -62.98%

Total current liabilities 5,242 5.09%
Revolving line of credit 31,042 52.55%
Long-term portion of capital lease obligation (56) -0.93%
Deferred income taxes 3,384 21.84%
Other long-term liabilities (124) -1.69%
Total liabilities 39,488 20.69%
Stockholders Equity:
Preferred stock, $0.01 par value, 50,000,000 shares
authorized, no shares issued and outstanding at
December 31, 2021 0 0.00%
Common stock, $0.01 par value, 300,000,000 shares

authorized, 26,176,056 and 26,112,007 shares issued
and outstanding at December 31, 2021 1 0.38%
Additional paid-in capital 2,770 1.92%
Retained deficit 10,419 -60.75%
Total stockholders' equity 13,190 10.33%
Total liabilities and stockholders' equity 52,678 16.54%
Income Statement
Net sales 254,639 27.02%
Cost of goods sold 194,964 26.79%
Gross profit 59,675 27.79%
Selling, general and administrative expenses 33,743 15.26%
Depreciation expense (1,869) -24.09%
Amortization expense 766 52.11%
Impairment assets held for sale 71 19.67%
Public offering transaction-related costs 10,008 -
Restructuring expense (2,712) -95.06%
Total operating expenses 40,007 17.12%
Income (loss) from operations 19,668 -104.02%
Interest expense 244 -6.04%
Other income (expense), net 592 212.95%
Income (loss) from continuing operations before
income taxes 20,504 -90.46%
Income tax expense 10,958 -135.55%
Income (loss) from continuing operations 9,546 -65.46%
Income from discontinued operations, net of income

tax expense of $201, $243 and $52, respectively 352 718.37%
Net income (loss) 9,898 -68.11%
CY1 - CY-2 in $ CY1 - CY-2in %
(1,553) -57.71%
(3,361) -87.96%
20,988 23.24%
17,385 23.52%
2,745 53.03%
(3,835) -61.87%
0 -
650 7.49%
(230) -6.46%
32,789 16.87%
963 1.75%
(1,076) -4.16%
675 10.37%
(843) -38.28%
20 0.99%
32,528 11.37%
(9,247) -12.46%
5,251 20.77%
(72,218) -100.00%
50 1.70%
81 5.35%
(89) -6.70%
360 29.06%
(75,812) -42.41%
59,072 -
376 6.67%
(1,487) -8.76%
(1,661) -18.44%
(19,512) -9.28%
0 -
261 -
98,036 210.68%
(4,635) 37.04%
93,517 273.73%
32,528 11.37%
182,416 24.00%
136,653 23.12%
45,763 27.08%
8,156 3.83%
(4,085) -34.49%
13 0.89%
(219) -37.76%
0 -
1,504 111.49%
5,409 2.37%
40,394 -68.12%
(1,195) 42.05%
2,398 -113.11%
41,597 -64.73%
(30,416) -136.20%
27,349 -65.22%
251 -124.26%
27,600 -65.51%
Workers Firstsource

Year End February 21
Asset Accounts: 2021 2020
Current assets:
Cash and cash equivalents $17,773 $54,696
Accounts receivable, less allowances of $8,049 and $3,153 for 2022 and
2021, respectively 140,064
Other receivables 24,070 143,036
Inventories, net 138,156 123,636
Other current assets 11,477 9,793
Total current assets 331,540 331,161
Property, plant and equipment, net 75,679 49,392
Assets held for sale 1,395
Goodwill 139,774 111,193
Intangible assets, net 17,228 827
Other assets, net 8,449 23,266
Total assets 574,065 515,839

Accounts payable 74,427 81,046
Accrued liabilities 67,666 45,310
Current maturities of long-term debt and lease obligations 30,074 67
Total current liabilities 172,167 126,423
Long-term debt and lease obligations, net of current maturities, debt
discount, and deferred loan costs 344,829 353,904
Other long-term liabilities 10,428 13,474
Total liabilities 533,865 500,471
Stockholders’ equity:
Preferred stock, $0.01 par value, 10,000 shares authorized; zero shares
issued and outstanding at December 31, 2022
Common stock, $0.01 par value, 200,000 shares authorized; 109,726 and
98,226 shares issued and outstanding at December 31, 2022
982 973
Additional paid-in capital 380,091 373,418
Accumulated deficit (340,873) (359,023)
Total stockholders’ equity 40,200 15,368
Total liabilities and stockholders’ equity 574,065 515,839
Number of shares outstanding 98,226 97,905
Market Value Per Share 6.87 7.13

(in thousands, except Per Share data, unless specified)
2021 2020
Income Statement [Abstract]
Sales $1,604,096 $1,489,892
Cost of sales 1,247,099 1,169,972
Gross margin 356,997 319,920
Selling, general and administrative expenses 306,979 271,878
Asset impairments 0 0
Facility closure costs 0 0
Income from operations 50,018 48,042
Interest expense, net 30,349 89,638
Income (loss) from continuing operations before income taxes 19,669 (41,596)
Income tax expense 1,111 769
Income (loss) from continuing operations 18,558 (42,365)
Income (loss) from discontinued operations (net of income tax expense of
$0 in 2022, 2021 and 2020) (408) (326)
Net income (loss) 18,150 (42,691)
Comprehensive income (loss) 18,150 (42,691)
Weighted average common shares outstanding:
Basic 98,050 96,449
Diluted 100,522 96,449
Earnings per share $0.19 ($0.44)
Consolidated Statements of Cash Flows

(in thousands, except Per Share data, unless specified)
2021 2020
Cash flows from operating activities:
Net income (loss) $18,150 (42,691)
Adjustments to reconcile net income (loss) to net cash provided by (used
in) operating activities:
Depreciation and amortization 9,519 9,305
Asset impairments
Amortization and write-off of deferred loan costs 2,432 4,067
Amortization and write-off of debt discount 7,794
Fair value adjustment of stock warrants (456) 1,502
Deferred income taxes 524 917
Bad debt, net of recoveries (274) 900
Net non-cash income from discontinued operations (195)
Stock compensation expense 6,157 4,245
Net gain on sales of assets (114) (284)
Changes in assets and liabilities, net of assets acquired and liabilities
assumed:
Receivables 1,113 (25,592)
Inventories (9,103) (14,637)
Other current assets (4,791) (1,116)
Other assets and liabilities (660) (1,344)
Accounts payable and checks outstanding (5,410) 1,332
Accrued liabilities 10,406 8,221
Net cash provided by (used in) operating activities 27,493 (47,576)
Purchases of property, plant and equipment (25,716) (15,051)
Proceeds from sale of property, plant and equipment 213 2,592
Cash used for acquisitions, net (69,337)
Decrease in restricted cash 13,030
Net cash provided by (used in) investing activities (94,840) 571
Cash flows from financing activities:
Borrowings under revolving credit facility 30,000 30,000
Payments under revolving credit facility (30,000)
Proceeds from issuance of notes 350,000
Proceeds from term loan
Repayments of long-term debt and other loans (67) (364,778)
Payments of loan costs (34) (15,634)
Payment of recapitalization costs (37)
Proceeds from public offering of common stock, net of issuance costs
Exercise of stock options 1,831 1,754
Repurchase of common stock (1,306) (1,036)
Net cash provided by (used in) financing activities 30,424 (29,731)
Net increase (decrease) in cash and cash equivalents (36,923) (76,736)
Cash and cash equivalents at beginning of period 54,696 131,432
Cash and cash equivalents at end of period 17,773 54,696
2019 2018
$131,432 $146,833
12,068 13,229
117,405 76,429
108,999 77,085
9,968 8,361
379,872 321,937
44,084 48,224
111,193 111,193
1,208 1,657
14,484 10,783
550,841 493,794
79,397 48,618
37,778 27,459
60 54
117,235 76,131
360,895 297,455
5,993 5,539
18,622 13,445
502,745 392,570
957 950
363,471 359,750
(316,332) (259,476)
48,096 101,224
550,841 493,794
96,916 96,806
5.58 -

2019 2018
$1,070,676 $779,093
856,110 621,148
214,566 157,945
222,263 192,959
48
958 2,461
(8,703) (37,475)
45,139 24,939
(53,842) (62,414)
577 2,217
(54,419) (64,631)
(2,437) (364)
(56,856) (64,995)
(56,856) (62,838)
95,463 94,950
95,463 94,950
($0.60) ($0.66)

2019 2018
(56,856) (64,995)
11,120 14,041
48
744 1,344
1,425 106
4,992 736
458 1,817
751 437
1,064
3,628 4,559
(38) (212)
(41,727) (17,175)
(31,914) (13,275)
(710) 1,792
(195) 384
30,779 3,752
9,581 281
(66,850) (66,408)
(10,398) (4,792)
230 349
1,135 (14,165)
(9,033) (18,608)
(20,000)
62,075 155,200
(54) (5,298)
(1,639) (1,285)
596
(496) (2)
60,482 128,615
(15,401) 43,599
146,833 103,234
131,432 146,833
VERTICAL ANALYSIS
Account Titles: 2021 2020 2019
Accounts receivable, less allowances of $8,049

and $3,153 for 2022 and 2021, respectively 24.40% 0.00% 2.19%
Other receivables 4.19% 27.73% 21.31%
Inventories, net 24.07% 23.97% 19.79%
Other current assets 2.00% 1.90% 1.81%
Property, plant and equipment, net 13.18% 9.58% 8.00%
Assets held for sale 0.24% 0.00% 0.00%
Goodwill 24.35% 21.56% 20.19%
Intangible assets, net 3.00% 0.16% 0.22%
Other assets, net 1.47% 4.51% 2.63%
Total assets 100.00% 100.00% 100.00%
Liabilities:
Accrued liabilities 11.79% 8.78% 6.86%
Current maturities of long-term debt and lease
obligations 5.24% 0.01% 0.01%
Long-term debt and lease obligations, net of
current maturities, debt discount, and deferred
loan costs 60.07% 68.61% 65.52%
Other long-term liabilities 1.82% 2.61% 3.38%
Common stock, $0.01 par value, 200,000

shares authorized; 109,726 and 98,226 shares
issued and outstanding at December 31, 2022 0.17% 0.19% 0.17%
Additional paid-in capital 66.21% 72.39% 65.98%
Accumulated deficit -59.38% -69.60% -57.43%
Total stockholders’ equity 7.00% 2.98% 8.73%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00%

Sales 100% 100% 100%
Cost of sales 78% 79% 80%
Gross margin 22% 21% 20%
Selling, general and administrative expenses 19% 18% 21%
Asset impairments 0% 0% 0%
Facility closure costs 0% 0% 0%
Income from operations 3% 3% -1%
Interest expense, net 2% 6% 4%
Income (loss) from continuing operations befor 1% -3% -5%

Income tax expense 0% 0% 0%
Income (loss) from continuing operations 1% -3% -5%
Income (loss) from discontinued operations

(net of income tax expense of $0 in 2022, 2021
and 2020) 0% 0% 0%
Net income (loss) 1% -3% -5%
2018 CY - CY-1 in $ CY - CY-1 in %

Account Titles:
29.74% Cash and cash equivalents (36,923) -67.51%
Accounts receivable, less allowances of
$8,049 and $3,153 for 2022 and 2021,
2.68% respectively 140,064 -
15.48% Other receivables (118,966) -83.17%
15.61% Inventories, net 14,520 11.74%
1.69% Other current assets 1,684 17.20%
65.20% Total current assets 379 0.11%
9.77% Property, plant and equipment, net 26,287 53.22%
0.00% Assets held for sale 1,395 -
22.52% Goodwill 28,581 25.70%
0.34% Intangible assets, net 16,401 1983.19%
2.18% Other assets, net (14,817) -63.69%
100.00% Total assets 58,226 11.29%
Liabilities:
9.85% Accounts payable (6,619) -8.17%
5.56% Accrued liabilities 22,356 49.34%
Current maturities of long-term debt and lease
0.01% obligations 30,007 44786.57%
15.42% Total current liabilities 45,744 36.18%
Long-term debt and lease obligations, net of -2.56%
current maturities, debt discount, and deferred
60.24% loan costs (9,075)
1.12% Deferred income taxes (229) -3.43%
2.72% Other long-term liabilities (3,046) -22.61%
79.50% Total liabilities 33,394 6.67%
Common stock, $0.01 par value, 200,000

shares authorized; 109,726 and 98,226 shares
0.19% issued and outstanding at December 31, 2022 9 0.92%
72.85% Additional paid-in capital 6,673 1.79%
-52.55% Accumulated deficit 18,150 -5.06%
20.50% Total stockholders’ equity 24,832 161.58%
100.00% Total liabilities and stockholders’ equity 58,226 11.29%
2018 CY - CY-1 in $ CY - CY-1 in %

100% Sales 114,204 7.67%
80% Cost of sales 77,127 6.59%
20% Gross margin 37,077 11.59%
25% Selling, general and administrative expenses 35,101 12.91%
0% Asset impairments 0 -
0% Facility closure costs 0 -
-5% Income from operations 1,976 4.11%
3% Interest expense, net (59,289) -66.14%
Income (loss) from continuing operations
-8% before income taxes 61,265 -147.29%
0% Income tax expense 342 44.47%
-8% Income (loss) from continuing operations 60,923 -143.81%
Income (loss) from discontinued operations

(net of income tax expense of $0 in 2022,
0% 2021 and 2020) (82) 25.15%
-8% Net income (loss) 60,841 -142.51%
60,841 -142.51%
(76,736) -58.38% (15,401) -10.49%
(12,068) -100.00% (1,161) -8.78%

25,631 21.83% 40,976 53.61%
14,637 13.43% 31,914 41.40%
(175) -1.76% 1,607 19.22%
(48,711) -12.82% 57,935 18.00%
5,308 12.04% (4,140) -8.58%
0 - 0 -
0 0.00% 0 0.00%
(381) -31.54% (449) -27.10%
8,782 60.63% 3,701 34.32%
(35,002) -6.35% 57,047 11.55%
1,649 2.08% 30,779 63.31%

7,532 19.94% 10,319 37.58%
7 11.67% 6 11.11%
9,188 7.84% 41,104 53.99%
-1.94% 21.33%
(6,991) 63,440
677 11.30% 454 8.20%
(5,148) -27.64% 5,177 38.51%
(2,274) -0.45% 110,175 28.07%
16 1.67% 7 0.74%
9,947 2.74% 3,721 1.03%
(42,691) 13.50% (56,856) 21.91%
(32,728) -68.05% (53,128) -52.49%
(35,002) -6.35% 57,047 11.55%

419,216 39.15% 291,583 37.43%
313,862 36.66% 234,962 37.83%
105,354 49.10% 56,621 35.85%
49,615 22.32% 29,304 15.19%
(48) -100.00% 48 -
(958) -100.00% (1,503) -61.07%
56,745 -652.02% 28,772 -76.78%
44,499 98.58% 20,200 81.00%
12,246 -22.74% 8,572 -13.73%

192 33.28% (1,640) -73.97%
12,054 -22.15% 10,212 -15.80%
2,111 -86.62% (2,073) 569.51%

14,165 -24.91% 8,139 -12.52%
14,165 -24.91% 5,982 -9.52%

Timber Flooring Financial Data Student Clean 11-2-2021

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LIQUIDITY RATIOS:

TF 2.2 2.6 2.7

Fixed Asset Turnover

TF 11.0 17.6 17.7

Total Asset Turnover

TF 2.3 2.6 2.5

DEBT MANAGEMENT RATIOS:

Home Warehouse 2.2 1.3 1.3 1.1

Times Interest Earned

Home Warehouse 12.9 12.3 11.0 11.0

Home Warehouse 27.8 25.6 27.1 22.1

Net Profit Margin

2021 2020 2019 2018

TF 9.9% 12.6% 9.6% 6.2%

Highes 7.8% 7.0% 6.5% 7.3%

2021 2020 2019

TF 13.7% 19.9% 14.7%

Highes 7.0% 5.9% 5.5%

2021 2020 2019

Highes 17.8% 12.9% 10.6%

egative P/E Ratios were replaced with -

Total Asset Turnover Revenue / Average Total Assets

Consolidated Balance Sheets

Liabilities and Stockholders' Equity

Common Stock ($0.001 par value; 35,000,000 shares authorized;

Consolidated Statements of Income (Loss)

Consolidated Statement of Cash Flows

2021 2020 2019

Liabilities and Stockholders' Equity

Common Stock ($0.001 par value; 35,000,000 shares authorized;

Income Statement 2021 2020 2019

2018 CY - CY-1 in $ CY - CY-1 in %

Liabilities and Stockholders' Equity

Common Stock ($0.001 par value; 35,000,000

2018 CY - CY-1 in $ CY - CY-1 in %

16,467 25.66% 2,492 4.04%

1,217 2.21% 16,949 44.41%

(34,830) 68.90% (49,436) 4429.75%

CY-1 - CY-2 in $ CY-1 - CY-2 in % CY-2 - CY-3 in $ CY-2 - CY-3 in %

Consolidated Balance Sheets

Liabilities and Stockholders Equity:

Consolidated Statement of Income

Basic earnings per common share $2.14 $1.69 $1.43

Consolidated Statements of Cash Flows

Gross margin 19,558

$53,417 $50,521 $50,208

18,476 17,327 17,350

1,462 1,523 1,480

3,673 3,137 2,906

2012 2013 2014

2021 2020 2019

Property, less accumulated depreciation 63.65% 65.75% 65.47%

Liabilities and Stockholders Equity:

Accrued compensation and employee benefits 2.40% 2.05% 1.83%

Long-term debt, excluding current maturities 30.81% 27.64% 20.96%

Deferred revenue - extended protection plans 2.23% 2.19% 2.10%

Preferred stock - $5 par value, none issued 0.00% 0.00% 0.00%

Accumulated other comprehensive loss -0.05% 0.16% 0.14%

Total liabilities and shareholders' equity 100.00% 100.00% 100.00%

Income Statement 2021 2020 2019

2018 CY- CY-1 in $ CY- CY-1 in %

65.55% Property, less accumulated depreciation (643) -2.99%

Liabilities and Stockholders Equity: