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Exhibit 1: Teuer Furnitures Showrooms and Square Footage
Stores Total SQ FT TotalOpened Stores Opened SQ FT
2003 1 1 17,200 17,2002004 3 4 17,600 70,0002005 4 8 18,500 144,0002006 5 13 21,100 249,5002007 6 19 22,100 382,1002008 2 21 15,500 413,1002009 1 22 14,500 427,6002010 2 24 14,700 457,0002011 2 26 15,400 487,8002012 3 29 16,300 536,7002013 2 31 16,000 568,7002014 2 33 16,000 600,7002015 2 35 15,000 630,700 2003 2005 2007 2009 2011 2013 2015
0
5
10
15
20
25
30
35
40
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Number of Showrooms Total Square Feet
2003 2005 2007 2009 2011 2013 20150
5
10
15
20
25
30
35
40
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
Number of Showrooms Total Square Feet
Exhibit 2: Economic Indicators: GDP and Furniture Sales Growth2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
CPI index 180.9 184.3 190.3 196.8 201.8 210.0 210.2 215.9 219.2 225.7 229.6 233.5 237.7 242.3 247.4 252.1 256.6 261.3 Inflation (CPI) 1.9% 3.3% 3.4% 2.5% 4.1% 0.1% 2.7% 1.5% 3.0% 1.7% 1.7% 1.8% 1.9% 2.1% 1.9% 1.8% 1.8%GDP (T$) 10,642 11,142 11,853 12,623 13,377 14,029 14,292 13,974 14,499 15,076 15,685 16,238 17,049 18,012 19,021 20,078 21,101 GDP growth 4.7% 6.4% 6.5% 6.0% 4.9% 1.9% -2.2% 3.8% 4.0% 4.0% 3.5% 5.0% 5.6% 5.6% 5.6% 5.1%Furniture sales ($B) 94.44 96.7 103.8 109.1 112.8 111.1 99.6 86.3 87.3 90.1 93.1 95.9 98.6 101.2 103.6 105.9 108.0 110.2 Furniture sales growth 2.4% 7.3% 5.2% 3.4% -1.5% -10.4% -13.4% 1.2% 3.2% 3.4% 3.0% 2.8% 2.6% 2.4% 2.2% 2.0% 2.0%
2003 2005 2007 2009 2011 2013 2015 2017
-15.0%
-10.0%
-5.0%
0.0%
5.0%
10.0%
GDP Growth Furniture Sales Growth Inflation (CPI)
Exhibit 3: Teuer Furniture Income Statement2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Sales 2,057 10,415 26,701 51,540 79,191 90,680 111,451 134,093 148,218Cost of goods sold -1,463 -7,057 -17,424 -30,730 -43,834 -47,290 -49,068 -55,487 -61,955Selling, general and admin -410 -1,812 -4,958 -9,230 -13,576 -14,679 -16,471 -18,698 -21,253 Advertising -203 -1,019 -2,411 -4,588 -6,585 -7,532 -8,367 -9,545 -10,744 Depreciation -72 -307 -669 -1,264 -2,075 -2,188 -2,032 -1,820 -1,450Lease -250 -1,080 -2,330 -4,240 -6,770 -7,380 -7,712 -8,450 -9,320Corporate expense -185 -729 -1,602 -3,092 -4,751 -5,441 -5,573 -6,705 -7,411Taxes 0 0 0 0 0 -543 -8,892 -13,356 -14,434Net income -526 -1,588 -2,693 -1,604 1,600 5,626 13,337 20,033 21,651
Parameters:Corporate tax rate 40%
Exhibit 4: Teuer Furniture Balance Sheet2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
AssetsAccounts Receivable 0 751 3,479 8,675 16,946 25,272 29,059 36,625 42,421 48,200Inventory 671 3,151 8,216 15,125 20,908 21,715 24,868 26,808 29,216 33,343
Total Current Assets 671 3,902 11,695 23,800 37,853 46,987 53,927 63,433 71,637 81,543PPE 358 1,461 2,969 5,270 8,065 6,914 5,119 3,839 3,142 3,920
Total Assets 1,029 5,364 14,663 29,070 45,918 53,900 59,046 67,272 74,779 85,463
Liabilities and EquityAccounts Payable 236 1,158 2,781 5,119 7,228 7,767 8,277 9,133 9,986 11,364Accrued Expenses 29 145 358 658 958 1,055 1,203 1,359 1,519 1,682
Total Current Liabilities 265 1,303 3,139 5,777 8,186 8,822 9,480 10,493 11,505 13,046Debt 0 0 0 0 0 0 0 0 0 0Equity 764 4,061 11,525 23,293 37,732 45,079 49,565 56,779 63,274 72,417
Total Liabilities and Equity 1,029 5,364 14,663 29,070 45,918 53,900 59,046 67,272 74,779 85,463
Balance sheet check
Exhibit 5: Teuer Furniture Income Statement for Individual Showrooms # Avg Size 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019
2003 1 17,200 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Sales 2,057 3,754 5,224 6,148 6,341 5,503 5,636 5,871 6,034 6,235 6,430 6,618 6,799 6,971 7,133 7,299
CGS 1,463 2,309 3,018 2,394 2,753 2,311 2,194 2,150 2,416 2,486 2,564 2,639 2,711 2,779 2,844 2,910
SGA 410 640 857 856 815 765 767 687 791 848 874 900 925 948 970 993
Advertising 203 334 399 434 422 423 391 401 457 447 461 474 487 499 511 523
Depreciation 72 72 72 72 72 0 0 0 65 65 65 65 65 0 0 0 1027.124Lease 250 250 250 250 250 250 302 302 302
2004 3 17,600 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Sales 6,661 11,907 15,158 16,488 15,446 16,187 17,279 17,869 18,464 19,041 19,599 20,134 20,643 21,123 21,615
CGS 4,748 7,428 7,894 7,216 6,031 6,675 6,691 7,176 7,362 7,592 7,815 8,028 8,231 8,422 8,618
SGA 1,171 2,148 2,631 2,323 2,239 2,224 2,395 2,319 2,511 2,589 2,665 2,738 2,807 2,873 2,939
Advertising 685 971 1,266 1,213 1,235 1,241 1,245 1,287 1,323 1,364 1,404 1,442 1,479 1,513 1,548
Depreciation 235 235 235 235 235 0 0 0 187 187 187 187 187 0 0
Lease 830 830 830 830 830 830 1,003 1,003
2005 4 18,500 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Sales 9,570 16,651 19,785 20,951 22,847 24,451 24,499 25,315 26,108 26,872 27,605 28,303 28,962 29,636
CGS 6,978 10,917 11,430 8,499 9,387 9,857 9,042 10,094 10,410 10,715 11,007 11,285 11,548 11,817
SGA 1,953 2,977 3,371 3,039 3,021 3,228 3,693 3,443 3,550 3,654 3,754 3,849 3,939 4,030
Advertising 1,041 1,488 1,587 1,598 1,605 1,645 1,793 1,813 1,870 1,925 1,977 2,027 2,074 2,123
Depreciation 363 363 363 363 363 0 0 0 0 0 0 0 0 0
Lease 1,250 1,250 1,250 1,250 1,250 1,250 1,510
2006 5 21,100 1 2 3 4 5 6 7 8 9 10 11 12 13
Sales 13,583 21,142 23,592 29,702 34,105 34,824 35,984 37,110 38,197 39,239 40,231 41,167 42,125
CGS 9,526 11,229 13,594 9,902 13,259 13,932 14,348 14,797 15,230 15,646 16,041 16,415 16,797
SGA 2,767 4,016 4,237 3,780 4,895 4,946 4,893 5,047 5,194 5,336 5,471 5,598 5,729
Advertising 1,400 1,784 1,964 2,014 2,327 2,287 2,577 2,658 2,736 2,811 2,882 2,949 3,017
Depreciation 594 594 594 594 594 0 0 0 0 0 0 0 0
Lease 1,910 1,910 1,910 1,910 1,910 1,910
2007 6 22,100 1 2 3 4 5 6 7 8 9 10 11 12
Sales 15,435 22,001 30,466 39,628 43,541 45,542 46,967 48,343 49,662 50,917 52,102 53,315
CGS 11,205 14,801 16,422 15,232 17,856 18,159 18,727 19,276 19,802 20,302 20,775 21,258
SGA 3,050 3,878 5,471 5,166 5,917 6,193 6,387 6,574 6,754 6,924 7,085 7,250
Advertising 1,578 1,986 2,458 2,748 3,109 3,262 3,364 3,463 3,557 3,647 3,732 3,819
Depreciation 812 812 812 812 812 0 0 0 0 0 0 0
Lease 2,530 2,530 2,530 2,530 2,530
2008 2 15,500 1 2 3 4 5 6 7 8 9 10 11
Sales 3,187 5,176 7,244 9,257 10,461 10,921 11,241 11,547 11,839 12,115 12,397
CGS 2,053 3,467 4,421 3,764 4,171 4,354 4,482 4,604 4,721 4,830 4,943
SGA 522 951 1,225 1,243 1,423 1,485 1,529 1,570 1,610 1,647 1,686
Advertising 326 499 598 675 749 782 805 827 848 868 888
Depreciation 185 185 185 185 185 0 0 0 0 0 0
Lease 610 610 610 610
2009 1 14,500 1 2 3 4 5 6 7 8 9 10
Sales 1,437 2,507 3,540 4,480 5,053 5,264 5,408 5,545 5,674 5,806
CGS 1,021 1,652 1,887 1,786 2,015 2,099 2,156 2,211 2,262 2,315
SGA 257 480 615 609 687 716 735 754 772 790
Advertising 158 227 303 321 362 377 387 397 406 416
Depreciation 79 79 79 79 79 0 0 0 0 0
Lease 280 280 280
2010 2 14,700 1 2 3 4 5 6 7 8 9
Sales 3,008 5,300 7,286 9,202 10,359 10,771 11,044 11,301 11,564
CGS 2,226 3,526 4,096 3,669 4,130 4,295 4,403 4,506 4,611
SGA 623 1,028 1,259 1,251 1,409 1,465 1,502 1,537 1,573
Advertising 353 473 596 659 742 772 791 809 828
Depreciation 150 150 150 150 150 0 0 0 0
Lease 565 565
2011 2 15,400 1 2 3 4 5 6 7 8
Sales 3,354 5,878 8,065 10,166 11,421 11,853 12,129 12,412
CGS 2,357 3,742 4,533 4,054 4,554 4,726 4,836 4,949
SGA 701 1,077 1,394 1,383 1,553 1,612 1,649 1,688
Advertising 358 522 659 728 818 849 869 889
Depreciation 160 160 160 160 160 0 0 0
Lease 610
2012 3 16,300 1 2 3 4 5 6 7
Sales 5,379 9,409 12,885 16,210 18,176 18,827 19,265
CGS 3,812 5,989 7,243 6,464 7,248 7,507 7,682
SGA 1,039 1,723 2,227 2,204 2,472 2,560 2,620
Advertising 569 836 1,053 1,161 1,302 1,349 1,380
Depreciation 259 259 259 259 259 0 0
Lease 1,000
2013 2 16,000 1 2 3 4 5 6
Sales 3,622 6,324 8,644 10,853 12,145 12,580
CGS 2,567 4,026 4,859 4,327 4,843 5,016
SGA 700 1,158 1,494 1,476 1,652 1,711
Advertising 383 562 707 777 870 901
Depreciation 172 172 172 172 172 0
Lease 668
2014 2 16,000 1 2 3 4 5
Sales 3,731 6,502 8,868 11,114 12,437
CGS 2,644 4,138 4,985 4,431 4,959
SGA 721 1,191 1,533 1,511 1,691
Advertising 395 578 725 796 891
Depreciation 175 175 175 175 175
Lease 682
2015 2 15,000 1 2 3 4
Sales 3,597 6,256 8,516 10,672
CGS 2,549 3,982 4,787 4,255
SGA 695 1,146 1,472 1,451
Advertising 381 556 696 764
Depreciation 167 167 167 167
Lease 652
Parameters:Lease rate (2013) 20.88Lease inflation 2.0%
TotalSales 2,057 10,415 26,701 51,540 79,191 90,680 111,451 134,093 148,218 165,024 181,929 199,600 217,540 231,499 242,308 251,122CGS 1,463 7,057 17,424 30,730 43,834 47,290 49,068 55,487 61,955 70,055 77,218 84,352 90,813 95,242 98,007 100,130SGA 410 1,812 4,958 9,230 13,576 14,679 16,471 18,698 21,253 23,295 25,689 28,131 30,415 32,104 33,266 34,150 Advertising 203 1,019 2,411 4,588 6,585 7,532 8,367 9,545 10,744 12,179 13,399 14,664 15,904 16,779 17,442 17,987 Depreciation 72 307 669 1,264 2,075 2,188 2,032 1,820 1,450 1,084 1,071 1,168 1,185 960 515 343Lease 250 1,080 2,330 4,240 6,770 7,380 7,712 8,450 9,320 1,000 668 682 652 0 0 0
Exhibit 6: Teuer Furniture Balance Sheet for Individual Showrooms # Avg Size 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
2003 1 17,200 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15
Cap expenditure 358 324
Accts receivable 751 1,187 1,665 1,975 2,040 1,700 1,745 1,742 1,902
Inventory 671 1,090 1,330 1,206 1,167 980 972 1,082 1,027 1,090
Accts payable 236 396 448 405 403 350 345 370 369 390
Accr expenses 29 49 62 61 61 53 54 57 58 58
2004 3 17,600 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
Cap expenditure 1,175 936
Accts receivable 2,292 3,870 5,029 5,526 5,276 5,599 5,612 5,691 5,989
Inventory 2,061 3,590 4,304 3,352 2,851 3,042 3,248 3,397 3,619
Accts payable 762 1,255 1,421 1,124 1,025 1,090 1,124 1,139 1,153
Accr expenses 95 158 193 173 162 162 175 177 179
2005 4 18,500 0 1 2 3 4 5 6 7 8 9 10 11 12 13
Cap expenditure 1,814
Accts receivable 3,140 5,508 6,296 6,231 7,149 7,751 7,950
Inventory 3,296 5,271 4,640 3,975 4,075 4,427 4,354 5,114
Accts payable 1,078 1,760 1,742 1,381 1,523 1,572 1,565 1,631
Accr expenses 138 212 240 203 240 244 251 259
2006 5 21,100 0 1 2 3 4 5 6 7 8 9 10 11 12
Cap expenditure 2,971
Accts receivable 4,433 6,593 7,974 10,040 10,908 11,761
Inventory 4,344 6,518 6,635 5,870 6,689 6,854 6,348
Accts payable 1,533 2,227 2,181 1,889 2,165 2,325 2,377
Accr expenses 193 272 300 291 337 343 362
2007 6 22,100 0 1 2 3 4 5 6 7 8 9 10 11
Cap expenditure 4,058
Accts receivable 4,817 6,829 9,849 12,400 13,920
Inventory 5,232 6,246 8,710 7,320 8,121 9,022
Accts payable 1,732 2,480 2,712 2,631 2,712 2,919
Accr expenses 213 293 362 381 436 435
2008 2 15,500 0 1 2 3 4 5 6 7 8 9 10
Cap expenditure 924
Accts receivable 1,048 1,758 2,212 2,905
Inventory 1,028 1,711 2,147 1,727 1,911
Accts payable 349 547 662 586 690
Accr expenses 43 72 88 94 101
2009 1 14,500 0 1 2 3 4 5 6 7 8 9
Cap expenditure 394
Accts receivable 484 840 1,191
Inventory 488 882 881 823
Accts payable 171 261 327 281
Accr expenses 21 34 43 44
2010 2 14,700 0 1 2 3 4 5 6 7 8
Cap expenditure 752
Accts receivable 956 1,787
Inventory 1,013 1,787 1,913
Accts payable 348 577 683
Accr expenses 44 71 91
2011 2 15,400 0 1 2 3 4 5 6 7
Cap expenditure 798
Accts receivable 1,093
Inventory 1,067 1,795
Accts payable 387 623
Accr expenses 47 76
2012 3 16,300 0 1 2 3 4 5 6
Cap expenditure 1,293
Accts receivable
Inventory 1,708
Accts payable 617
Accr expenses 79
2013 2 16,000 0 1 2 3 4 5
Cap expenditure 860
Accts receivable
Inventory
Accts payable
Accr expenses
2014 2 16,000 0 1 2 3 4
Cap expenditure 876
Accts receivable
Inventory
Accts payable
Accr expenses
2015 2 15,000 0 1 2 3
Cap expenditure 837
Accts receivable
Inventory
Accts payable
Accr expenses
PPE 358 1,175 1,814 2,971 4,058 924 394 752 1,122 2,229 860 876 837 0 0 0358 1,533 3,275 5,940 9,328 8,989 7,308 5,871 4,961 5,370 4,780 4,572 4,338 3,170 1,985 1,025358 1,461 2,969 5,270 8,065 6,914 5,119 3,839 3,142 3,920 3,696 3,501 3,170 1,985 1,025 510
Equity 29,495 32,872 36,374 40,617 44,903 48,578 72,417 101,912 134,784 171,159 211,776 256,679 305,256
Exhibit 7: Teuer Furniture Cash Flow Assets 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Sales 2,057 10,415 26,701 51,540 79,191 90,680 111,451 134,093 148,218 - Costs -2,583 -12,003 -29,394 -53,144 -77,592 -84,510 -89,222 -100,704 -112,132 - Taxes 0 0 0 0 0 -543 -8,892 -13,356 -14,434Net income 0 -526 -1,588 -2,693 -1,604 1,600 5,626 13,337 20,033 21,651 - Capital expenditure -358 -1,175 -1,814 -2,971 -4,058 -924 -394 -752 -1,122 -2,229 + Depreciation 0 72 307 669 1,264 2,075 2,188 2,032 1,820 1,450 - Increase in NWC -406 -2,193 -5,957 -9,467 -11,645 -8,498 -6,281 -8,494 -7,192 -8,365Cash flow to assets -764 -3,823 -9,052 -14,461 -16,043 -5,747 1,139 6,124 13,539 12,508
Exhibit 8: Forecasting Sales Revenue and CostsYear 1 2 3 4 5 6 7 8 9
Sales growth 2003 73.6% 34.6% 19.5% 15.1% 0.2% 1.2% 1.0% -0.6%2004 72.9% 29.2% 21.4% 8.1% 3.6% 3.4% 0.0%2005 76.6% 32.6% 22.2% 7.8% 3.7% -3.1%2006 73.8% 28.8% 24.4% 11.3% -1.3%2007 64.5% 36.8% 26.1% 6.3%2008 60.5% 35.6% 23.6%2009 69.0% 36.6%2010 70.4%2011
Average 70.2% 33.5% 22.9% 9.7% 1.5% 0.3%
Year 1 2 3 4 5 6 7 8 9CGS 2003 71.1% 61.5% 57.8% 38.9% 43.4% 42.0% 38.9% 36.6% 40.0%
2004 71.3% 62.4% 52.1% 43.8% 39.0% 41.2% 38.7% 40.2%2005 72.9% 65.6% 57.8% 40.6% 41.1% 40.3% 40.2%2006 70.1% 53.1% 57.6% 33.3% 38.9% 40.0%2007 72.6% 67.3% 53.9% 38.4% 41.0%2008 64.4% 67.0% 61.0% 40.7%2009 71.0% 65.9% 53.3%2010 74.0% 66.5%2011 70.3%
Average 70.9% 63.7% 56.2% 39.9%
Year 1 2 3 4 5 6 7 8 9SGA 2003 19.9% 17.1% 16.4% 13.9% 12.9% 13.9% 13.6% 11.7% 13.1%
2004 17.6% 18.0% 17.4% 14.1% 14.5% 13.7% 13.9% 13.0%2005 20.4% 17.9% 17.0% 14.5% 13.2% 13.2% 15.1%2006 20.4% 19.0% 18.0% 12.7% 14.4% 14.2%2007 19.8% 17.6% 18.0% 13.0% 13.6%2008 16.4% 18.4% 16.9% 13.4%2009 17.9% 19.2% 17.4%
2010 20.7% 19.4%2011 20.9%
Average 19.3% 18.3% 17.3% 13.6%
Year 1 2 3 4 5 6 7 8 9Advertising 2003 9.9% 8.9% 7.6% 7.1% 6.7% 7.7% 6.9% 6.8% 7.6%
2004 10.3% 8.2% 8.3% 7.4% 8.0% 7.7% 7.2% 7.2%2005 10.9% 8.9% 8.0% 7.6% 7.0% 6.7% 7.3%2006 10.3% 8.4% 8.3% 6.8% 6.8% 6.6%2007 10.2% 9.0% 8.1% 6.9% 7.1%2008 10.2% 9.6% 8.3% 7.3%2009 11.0% 9.1% 8.6%2010 11.7% 8.9%2011 10.7%
Average 10.6% 8.9% 8.2% 7.2%
Exhibit 9: Forecasting InvestmentYear 1 2 3 4 5 6 7 8 9
Accounts Receivable 2003 36.5% 31.6% 31.9% 32.1% 32.2% 30.9% 31.0% 29.7% 31.5%2004 34.4% 32.5% 33.2% 33.5% 34.2% 34.6% 32.5% 31.9%2005 32.8% 33.1% 31.8% 29.7% 31.3% 31.7% 32.4%2006 32.6% 31.2% 33.8% 33.8% 32.0% 33.8%2007 31.2% 31.0% 32.3% 31.3% 32.0%2008 32.9% 34.0% 30.5% 31.4%2009 33.7% 33.5% 33.6%2010 31.8% 33.7%2011 32.6%
Average 32.4%
Year 1 2 3 4 5 6 7 8 9Inventory 2003 45.9% 47.2% 44.0% 50.4% 42.4% 42.4% 44.3% 50.3% 42.5%
2004 43.4% 48.3% 54.5% 46.4% 47.3% 45.6% 48.5% 47.3%2005 47.2% 48.3% 40.6% 46.8% 43.4% 44.9% 48.2%2006 45.6% 58.0% 48.8% 59.3% 50.4% 49.2%2007 46.7% 42.2% 53.0% 48.1% 45.5%2008 50.1% 49.4% 48.6% 45.9%2009 47.8% 53.4% 46.7%2010 45.5% 50.7%2011 45.3%
Average 47.6%
Year 1 2 3 4 5 6 7 8 9Accounts Payable 2003 16.1% 17.2% 14.8% 16.9% 14.6% 15.2% 15.7% 17.2% 15.3%
2004 16.1% 16.9% 18.0% 15.6% 17.0% 16.3% 16.8% 15.9%2005 15.4% 16.1% 15.2% 16.2% 16.2% 15.9% 17.3%2006 16.1% 19.8% 16.0% 19.1% 16.3% 16.7%2007 15.5% 16.8% 16.5% 17.3% 15.2%2008 17.0% 15.8% 15.0% 15.6%2009 16.8% 15.8% 17.3%
2010 15.6% 16.4%2011 16.4%
Average 16.3%
Year 1 2 3 4 5 6 7 8 9Accrued Expenses 2003 4.7% 5.1% 4.9% 4.7% 4.9% 4.5% 4.6% 5.2% 4.7%
2004 5.1% 5.1% 4.9% 4.9% 4.7% 4.7% 4.8% 4.9%2005 4.6% 4.7% 4.8% 4.4% 5.2% 5.0% 4.6%2006 4.6% 4.7% 4.8% 5.0% 4.7% 4.7%2007 4.6% 5.0% 4.6% 4.8% 4.8%2008 5.1% 5.0% 4.8% 4.9%2009 5.2% 4.8% 4.7%2010 4.5% 4.7%2011 4.4%
Average 4.8%
Nominal RealConstruction costs 2003 20.8 25.9
2004 22.3 26.82005 24.5 28.62006 28.2 32.02007 30.6 33.52008 29.8 32.62009 27.2 28.92010 25.6 26.82011 25.9 26.42012 26.4 26.42013 26.9 26.42014 27.4 26.42015 27.9 26.4
Nominal Real
Refresh cost 2003 90.6% 74.0%2004 79.6% 66.0%
Average 70.0%
Exhibit 10: Forecasting Parameters1 2 3 4 5 6 7
Sales growth 70.2% 33.5% 22.9% 9.7% 1.5% 0.3%CGS (% sales) 70.9% 63.7% 56.2% 39.9% 39.9% 39.9% 39.9%SGA (% sales, excluding dep & advertising) 19.3% 18.3% 17.3% 13.6% 13.6% 13.6% 13.6%Advertising (% sales) 10.6% 8.9% 8.2% 7.2% 7.2% 7.2% 7.2%Accounts Receivable (% sales) 32.4%Inventory (% next year's CGS) 47.6%Accounts Payable (% next year's CGS) 16.3%Accrued expenses (next year's SGA adv) 4.8%Depreciation (years) 5Refresh cost 70%Corporate tax rate 40.0%Corporate expenses 5.0%Discount rate 12.1%Long-term growth rate 3.5%Shares outstanding (K) 9,945
Teuer Furniture Pro Forma Income Statement 2,012 2,013 2,014 2,015 2,016 2,017 2,018 2,019
Sales 148,218 165,024 181,929 199,600 217,540 231,499 242,308 251,122 CGS (61,955) (70,055) (77,218) (84,352) (90,813) (95,242) (98,007) (100,130)SGA (exc adv & dep) (21,253) (23,295) (25,689) (28,131) (30,415) (32,104) (33,266) (34,150) Advertising (10,744) (12,179) (13,399) (14,664) (15,904) (16,779) (17,442) (17,987) Depreciation (1,450) (1,084) (1,071) (1,168) (1,185) (960) (515) (343)Lease (stores) (9,320) (1,000) (668) (682) (652) - - - Corp Expense (inc lease/adv) (7,411) (8,251) (9,096) (9,980) (10,877) (11,575) (12,115) (12,556)Taxes (14,434) (19,663) (21,915) (24,250) (27,078) (29,935) (32,385) (34,382)Net income 21,651 29,495 32,872 36,374 40,617 44,903 48,578 51,573
Parameters:Corporate tax rate 40%Corporate expenses 5%
PF2012 2013 2014 2015 2016 2017 2018
AssetsAccounts Receivable 48,200 53,529 59,012 64,745 70,564 75,092 78,598Inventory 33,343 36,726 40,119 43,192 45,299 46,614 47,624
Total Current Assets 81,543 90,255 99,132 107,937 115,863 121,706 126,221Cash (bal fig) 0 22,451 47,985 77,110 111,832 152,392 197,384PPE 3,920 3,696 3,501 3,170 1,985 1,025 510
Total Assets 85,463 116,402 150,618 188,217 229,680 275,122 324,116
Liabilities and EquityAccounts Payable 11,364 12,611 13,777 14,832 15,555 16,007 16,353Accrued Expenses 1,682 1,879 2,057 2,226 2,349 2,437 2,506
Total Current Liabilities 13,046 14,490 15,833 17,058 17,904 18,444 18,859Debt 0 0 0 0 0 0 0Equity 72,417 101,912 134,784 171,159 211,776 256,679 305,256
Total Liabilities and Equity 85,463 116,402 150,618 188,217 229,680 275,122 324,116
Balance sheet check (A=L+E)
Teuer Furniture Pro Forma Cash Flow Assets 2012 2013 2014 2015 2016 2017 2018
Sales 148,218 165,024 181,929 199,600 217,540 231,499 242,308 - Costs (excl taxes) -112,132 -115,865 -127,142 -138,976 -149,845 -156,661 -161,345 - Taxes -14,434 -19,663 -21,915 -24,250 -27,078 -29,935 -32,385Net income 21,651 29,495 32,872 36,374 40,617 44,903 48,578 - Capital expenditure -2,229 -860 -876 -837 0 0 0 + Depreciation 1,450 1,084 1,071 1,168 1,185 960 515 - Increase in NWC -8,365 -7,268 -7,533 -7,580 -7,079 -5,304 -4,100Cash flow assets 12,508 22,451 25,534 29,125 34,722 40,560 44,992Terminal value 541,476
22,451 25,534 29,125 34,722 40,560 586,468Asset value 20,027 20,319 20,675 21,988 22,912 295,536Present Value 401,459Share value 40.37
Parameters:Asset discount rate 12.1%Long-term growth rate 3.5%Shareholders (#) 187 Shares outstanding (K) 9,945
2012 2013 2014 2015 2016 2017Sales 148,218 165,024 181,929 199,600 217,540 231,499 - Costs (excl taxes) -112,132 -115,865 -127,142 -138,976 -149,845 -156,661 - Taxes -14,434 -19,663 -21,915 -24,250 -27,078 -29,935Net income 21,651 29,495 32,872 36,374 40,617 44,903 - Capital expenditure -2,229 -860 -876 -837 0 0 + Depreciation 1,450 1,084 1,071 1,168 1,185 960 - Increase in NWC -8,365 -7,268 -7,533 -7,580 -7,079 -5,304Cash flow assets 12,508 22,451 25,534 29,125 34,722 40,560Terminal value
22,451 25,534 29,125 34,722 40,560Asset value 20,027 20,319 20,675 21,988 22,912Present Value 401,459
Parameters:Asset discount rate 12.1%Long-term growth rate 3.5%Shareholders (#) 187 Shares outstanding (K) 9,945
2018242,308
-161,345-32,38548,578
0515
-4,10044,992
541,476586,468295,536
1. To adjust the effecct of new showrooms and effect of economy the growth rate of sales is calculated as the ratio of paricular year to last year sales and divided by one plus the growth rate of total furniture sales in the year2. Because inventory, AP, and CGS all depend upon price paid for merchandise, inventory and AP can be forcasted as afunctionof next year CGS
1. To adjust the effecct of new showrooms and effect of economy the growth rate of sales is calculated as the ratio of paricular year to last year sales and divided by one plus the growth rate of total furniture sales in the year2. Because inventory, AP, and CGS all depend upon price paid for merchandise, inventory and AP can be forcasted as afunctionof next year CGS
1. To adjust the effecct of new showrooms and effect of economy the growth rate of sales is calculated as the ratio of paricular year to last year sales and divided by one plus the growth rate of total furniture sales in the year