Pro Forma Financial Statements 2014 2015 2016

FINANCIAL ASSUMPTIONS
Income Statement Assumptions
Market Share Growth (% Change) 1.0% 1.2% 2.0%
Market Growth (% Change) 7.0% 14.0% 11.0%
Revenue Growth (% Change) 5.10% 7.21% -2.66%
Cost of Goods Sold (% of Revenue) 31.18% 35.30% 34.11%
SG&A (% of Revenue) 23.59% 21.72% 21.06%
Depreciation & Amortization (% of Gross PP&E) 7.19% 8.70% 5.75%
Interest (% of LT Debt) 2.89% 2.81% 3.06%
Tax Rate (% of Income Before Tax) 21.24% 36.72% 19.46%
Balance Sheet Assumptions
Net Receivable (Days) 82 70 73
Inventory (Days) 36 32 26
Capital Expenditures ($000's) 4,533 5,819 9,757
Debt Issuance (Repayment) ($000's) 7,163 13,510 37,180
Equity Issued (Repaid) ($000's) 838 10,806 12,575

INCOME STATEMENT
REVENUE AND GROSS PROFIT
Total Revenue 86,833 93,580 91,154
OPERATING EXPENSES
COGS Expenses 27,078 33,038 31,090
SG&A Expenses 20,488 20,324 19,198
Research & Development 11,381 12,046 11,988
Unusual Expense (Income) 233 10,194 1,432
Total Operating Expense 58,947 65,408 62,276
Operating Income 27,653 17,978 27,446
NON-OPERATING INCOME & EXPENSES
Interest Expense 597 781 1,243
Income Before Tax 27,056 17,197 26,203
INCOME TAXES
Income Tax - Total 5,746 6,314 5,100
Income After Tax 21,310 10,883 21,103
Total Extraordinary Items 100 100 100
Net Income 21,410 10,983 21,203
EPS RECONCILIATION
Basic/Primary Weighted Average Shares 8,239 8,027 7,808

Basic Normalized EPS 2.60 1.37 2.72

BALANCE SHEET
ASSETS
Cash & Equivalents 8,669 5,595 6,510
Short Term Investments 76,796 90,687 106,657
Cash and Short Term Inv 85,465 96,282 113,167
Total Receivables, Net 19,544 17,918 18,277
Total Inventory 2,660 2,902 2,251
Other Current. Assets, Total 6,577 5,705 5,965
Total Current Assets 114,246 122,807 139,660
Prop./Plant/Equip. - Gross 27,804 32,337 38,156
Accumulated Depreciation -14,793 -17,606 -19,800
Prop./Plant/Equip. - Net 13,011 14,731 18,356
Goodwill, Net 20,127 16,939 17,872
Intangibles, Net 6,981 4,835 3,733
Long Term Investments 14,590 12,028 10,413
Other Long Term Assets 3,429 2,900 3,215
Total Assets 172,384 174,240 193,249
LIABILITIES
Total Current Liabilities 45,625 49,647 59,357
Long Term Debt 20,645 27,808 40,557
Capital Lease Obligations -- -- 761
Total Long Term Debt 20,645 27,808 41,318
Deferred Income Tax 2,728 1,295 1,476
Other Liabilities, Total 13,602 15,639 19,320
Total Liabilities 103,245 122,197 162,789
SHAREHOLDER EQUITY
Common Stock 51,494 50,169 48,800
Additional Paid-In Capital 16,872 18,296 19,378
Retained Earnings (Accumulated Deficit) 13,531 14,632 25,953
Unrealized Gain (Loss) 3,531 3,169 2,941
Total Equity 85,428 86,266 97,072
Total Liabilities & Shareholders Equity 188,673 208,463 259,861
Total Common Shares Outstanding 8,239 8,027 7,808

STATEMENT OF CASH FLOWS

CASH FROM (USED BY) OPERATING ACTIVITIES
Net Income 21,410 10,983 21,203
Plus: Depreciation/Depletion 2,000 2,813 2,194
Net Receivables 2,500 -1,626 359
Inventories 2,660 242 -651
Changes in Working Capital 500 4,539 7,143
Total Cash from Operations 29,070 16,951 30,248
PLUS: CASH FROM (USED BY) INVESTING ACTIVITIES
Capital Expenditures 3,000 1,720 3,625
Sale/Maturity of Investment 65,366 85,861 85,861
Purchase of Investments -72,690 -88,729 -88,729
Total Cash from Investing -4,324 -1,148 757
PLUS: CASH FROM (USED BY) FINANCING ACTIVITIES
Total Cash Dividends Paid -8,879 -9,882 -9,882
Issuance (Retirement) of Stock, Net -6,709 -13,809 -13,809
Issuance (Retirement) of Debt, Net 6,962 13,661 13,661
Total Cash From Financing -8,626 -10,030 -10,030
EQUALS: INCREASE (DECREASE) IN CASH
Foreign Exchange Effects -139 -73 -73
Net Change in Cash 15,981 5,700 20,902
Net Cash - Beginning Balance / Reserved for Future Use 3,804 19,785 25,485
Net Cash -Ending Balance /Reserved for Future Use 19,785 25,485 46,387
 2017 2018 2019 2020 2021 2022 2023

-1.5% 1.5% 0.8% 0.7% 0.4% 0.8% 0.7%

10.6% 4.6% 10.1% 9.1% 8.6% 8.1% 8.9%
5.61% 12.49% 5.7% 5.3% 7.3% 7.7% 6.5%
35.48% 34.75% 34.9% 34.8% 35.0% 34.9% 34.9%
19.31% 20.14% 20.6% 20.3% 20.1% 20.3% 20.3%
9.14% 8.60% 8.0% 7.9% 8.4% 8.2% 8.1%
2.92% 3.78% 3.1% 3.2% 3.3% 3.4% 3.2%
16.49% 19.22% 23.0% 19.5% 19.6% 20.3% 20.6%

85 88 80 79 81 82 82
23 25 29 27 26 26 27
10,770 -58,683 -5,561 -7,580 -10,259 -14,263 -19,269
-2,131 13,931 15,622 16,150 10,893 14,149
15,484 9,926 12,198 12,546 12,538 11,802

96,571 110,360

34,261 38,353
18,648 22,223
12,292 14,726
2,400 47
65,201 75,302
28,970 35,011

2,222 2,733
26,748 32,278

4,412 6,203
22,336 26,075
100 100
22,436 26,175

7,708 7,677

2.91 3.41

7,663 11,946
125,218 121,704
132,881 133,650
22,431 26,481
 2,181 2,662
5,203 6,869
162,696 169,662
47,913 58,683
-24,179 -29,223
23,734 29,460
35,122 35,683
10,106 8,053
5,956 1,862
4,443 5,642
242,057 250,362

55,745 58,488
76,073 72,242
2,425 4,125
78,498 76,367
5,734 541
22,624 40,734
241,099 252,497

48,175 47,981
21,140 23,242
38,507 54,800
1,825 -892
109,647 125,131
350,746 377,628
7,708 7,677

22,436 26,175
4,379 5,044
4,154 4,050
-70 481
26,648 4,223
57,547 39,973

5,378 5,726
85,861 85,861
-88,729 -88,729
2,510 2,858

-9,882 -9,882
-13,809 -13,809
13,661 13,661
-10,030 -10,030

-73 -73
49,954 32,728
46,387 96,341
96,341 129,069