BLAINE KITCHENWARE
Case Exhibit 1
Operating Results:
Revenue
Less: Cost of Goods Sold
Gross Profit
Less: Selling, General & Administrative
Operating Income
Plus: Depreciation & Amortization
EBITDA
EBIT
Interest Expense
Plus: Other Income (expense)
Earnings Before Tax
Less: Taxes
Net Income
Dividends
Revenue Growth
Gross Margin
EBIT Margin
EBITDA Margin
Effective Tax Rate (1)
Net Income Margin
Dividend payout ratio
2004
291,940
204,265
87,676
25,293
62,383
6,987
69,370
2005
307,964
220,234
87,731
27,049
60,682
8,213
68,895
2006
342,251
249,794
92,458
28,512
63,946
9,914
73,860
62,383
60,682
63,946
15,719
78,101
24,989
53,112
18,589
16,057
76,738
24,303
52,435
22,871
13,506
77,451
23,821
53,630
28,345
5.5%
28.5%
19.7%
22.4%
31.7%
17.0%
43.6%
11.1%
27.0%
18.7%
21.6%
30.8%
15.7%
52.9%
Margins:
3.2%
30.0%
21.4%
23.8%
32.0%
18.2%
35.0%
BLAINE KITCHENWARE
Case Exhibit 2
Assets:
Cash & Cash Equivalents
Marketable Securities
Accounts Receivable
Inventory
Other Current Assets
Total Current Assets
2004
67,391
218,403
40,709
47,262
2,586
376,351
2005
70,853
196,763
43,235
49,728
3,871
364,449
Property, Plant & Equipment
Goodwill
Other Assets
Total Assets
99,402
8,134
13,331
497,217
138,546
20,439
27,394
550,829
Liabilities & Shareholders' Equity:
Long term debts
Accounts Payable
Accrued Liabilities
Taxes Payable
Total Current Liabilities
Other liabilities
Deferred Taxes
Total Liabilities
Shareholders' Equity
Total Liabilities & Shareholders' Equity
26,106
22,605
14,225
62,935
1,794
15,111
79,840
417,377
497,217
28,589
24,921
17,196
70,705
3,151
18,434
92,290
458,538
550,829
2006 AdjustmentPost Adjustment
66,557 (209,000)
(142,443)
164,309
164,309
48,780
48,780
54,874
54,874
5,157
5,157
339,678
339,678
0
174,321
174,321
38,281
38,281
39,973
39,973
592,253 (209,000)
383,253
0
0
50,000
50,000
31,936
31,936
27,761
3,375
31,136
16,884
(1,350)
15,534
76,581
52,025
128,606
4,814
4,814
22,495
22,495
103,890
103,890
488,363 (261,025)
227,338
592,253 (209,000)
383,253
Exhibit 3 Selected Operating and Financial Data for Public Kitchenware Producers
Revenue
EBIT
EBITDA
Net income
Home & Hearth Design AutoTech Appliances
$589,747
$18,080,000
106,763
2,505,200
119,190
3,055,200
$53,698
$1,416,012
XQL Corp.
$4,313,300
721,297
796,497
$412,307
Bunkerhill, Inc.
$3,671,100
566,099
610,399
$335,073
EasyLiving Systems
$188,955
19,613
23,356
$13,173
Cash & securities
Net working capital*
Net fixed assets
Total assets
$21,495
54,316
900,803
$976,613
$536,099
1,247,520
7,463,564
$9,247,183
$21,425
353,691
3,322,837
$3,697,952
$153,680
334,804
815,304
$1,303,788
$242,102
21,220
68,788
$332,110
Net debt (1)
Total debt
Book equity
$350,798
372,293
$475,377
$4,437,314
4,973,413
$3,283,000
$950,802
972,227
$2,109,400
$238,056
391,736
$804,400
($64,800)
177,302
$94,919
776,427
$1,127,226
13,978,375
$18,415,689
5,290,145
$6,240,947
3,962,780
$4,200,836
418,749
$353,949
1.03
1.24
0.96
0.92
0.67
LTM Trading Multiples
MVIC/Revenue
MVIC/EBIT
MVIC/EBITDA
Market/Book equity
1.91x
10.56x
9.46x
1.63x
1.02x
7.35x
6.03x
4.26x
1.45x
8.65x
7.84x
2.51x
1.14x
7.42x
6.88x
4.93x
1.87x
18.05x
15.15x
4.41x
Net Debt/Equity
Net Debt/Enterprise Value
45.18%
31.12%
31.74%
24.10%
17.97%
15.23%
6.01%
5.67%
-15.47%
-18.31%
Market capitalization
Enterprise value (MVIC)
Equity beta
* Net working capital excludes cash and securities
(1) Net debt is total long term and short term debt less excess cash.
Blaine Kitchenware
$342,251
63,946
73,860
$53,630
$230,866
32,231
174,321
$592,253
($230,866)
$488,363
959,596
$728,730
0.56
2.13x
11.40x
9.87x
1.96x
-24.06%
-31.68%
Exhibit 4
Contemporaneous Capital Market Data: April 21, 2007
Yields on US Treasury Securities
Maturity
30 days
4.55%
60 days
4.73%
90 days
4.91%
1 year
4.90%
5 years
4.91%
10 years
5.02%
20 years
5.26%
30 years
5.10%
Seasoned corporate bond yields* Default spread
Moody's Aaa
5.88%
0.86%
Aa
6.04%
1.02%
A
6.35%
1.33%
Baa
Err:522
Err:522
Ba
7.88%
2.86%
B
8.94%
3.92%
Assumptions
*We are assuming that the bond yields are also 10 years.
**We have assumed a AAA bond yield rating for this exercise as the Interest Coverage Ratio is higher than 13 times.
