Lecture Series #1
Understanding Financial Statements & Analysis
Chris Droussiotis
October 2011
Table of Contents



Accounting Definitions, Terms and Concepts
Using Financial Statements
Financial Ratio Analysis
These slides could be obtain via the Instructor’s Web page at
www.celeritymoment.com
2
Accounting Definitions and Concepts
A = L + NW
Own
Owe
A = Assets
L = Liabilities
NW = Net Worth
Keep (Value Creation)
Government
How did you pay for the Assets that you own
Similar Concepts in Other Areas of Finance:
• Consumer finance: Value of the House = Mortgage + Equity
• Corporation Value: Enterprise Value = Net Debt + Equity
3
• Investments: Value of the Investment: Margin Loan + Equity
• Deficit or Surplus
Accounting Definitions and Concepts
Book Value Vs Market Value
4
Book Value
Market Value
 Accounting
 Finance
 Fixed Assets
 Financial Assets
 Corporate Taxation
 Investment Taxation
Accounting Definitions and Concepts
Income Vs Cash
The Perfect World:
Every business is run like a lemonade Stand
Income Statement
5
Cash Flow Statement
Lemonade Sales
Sold 100 cups @ $1 each
$ 100.00
Profit
Expenses
Box of 100 Cups
Lemonade concetrate
4 Gallons of Water
Total Expenses
$ 5.00
$ 5.00
$ 10.00
$ 20.00
Net Income (Profit)
$ 80.00
$ 80.00
Plus Money that we owe
Less Money owed to us
$0.00
$0.00
Net Working Capital
$0.00
Cash
$ 80.00
Accounting Definitions and Concepts
Income Vs Cash
Not So Perfect World:
The world of IOUs
Income Statement
6
Cash Flow Statement
Lemonade Sales
Sold 100 cups @ $1 each
$ 100.00
Profit
Expenses
Box of 100 Cups
Lemonade concetrate
4 Gallons of Water
Total Expenses
$ 5.00
$ 5.00
$ 10.00
$ 20.00
Net Income (Profit)
$ 80.00
$ 80.00
Plus Money that we owe
Less Money owed to us
$0.00
-$1.00
Net Working Capital
-$1.00
Cash
$ 79.00
Income Statement



7
Measurement of Profit and Loss over a Period of Time
Top Line to Bottom Line
Revenue (Sales) Less Expenses = Profit or Loss
Income Statement
Income Statement (000's)
8
2009
2010
50
51
52
53
54
55
56
57
58
59
60
Revenues by Geography
U.S.
Europe
Asia
Total Revenue
800,000
120,000
40,000
960,000
920,000
140,000
50,000
1,110,000
Cost of Revenues by Geography
U.S.
Europe
Asia
Total Cost of Revenue
220,000
100,000
25,000
345,000
270,000
115,000
35,000
420,000
62
63
64
65
66
67
68
69
70
Gross Profit
615,000
690,000
Operating Expenses
Administrative & General
Marketing Expenses
Other Operating Expenses
Total Operating Expenses
145,000
75,000
10,000
230,000
165,000
80,000
12,000
257,000
EBITDA
385,000
433,000
72
Depreciation & Amortization
60,000
65,000
74
EBIT
325,000
368,000
76
Interest Expense
130,000
120,000
78
EBT
195,000
248,000
80
81
82
Taxes
78,000
99,200
117,000
148,800
Net Income
40%
Balance Sheet Statement


9
It shows us on a snap shot the Wealth of the Company
The statement is set-up in Order of Liquidity
Balance Sheet Statement
Balance Sheet (000's)
10
6
7
8
9
10
11
Current Assets
Cash
Accounts Receivable
Inventories
Prepaid Expenses
Total Current Assets
13
14
15
16
17
18
19
Property and Equipment
Land
Building
Furniture & Equipment
Total Gross P&E
Less Accumulated Depreciaition
Net P&E
21
Long-Term Investments
23
Total Assets
25
Liabilities and Owners Equity
27
28
29
30
31
32
Current Liabilities
Accounts Payable
Accrued Income Taxes
Accrued Expenses
Current Portion of Long Term Debt
Total Current Liabilities
34
Long-Term Debt:
36
Deferred Income Taxes
38
40
41
42
43
44
46
2009
45,000
45,000
35,000
10,000
135,000
2,500,000
450,000
50,000
3,000,000
(300,000)
2,700,000
2010
65,800
60,000
40,000
9,000
174,800
2,500,000
550,000
75,000
3,125,000
(365,000)
2,760,000
$ Change
% Change
20,800
15,000
5,000
(1,000)
39,800
46.2%
33.3%
14.3%
-10.0%
29.5%
100,000
25,000
125,000
(65,000)
60,000
0.0%
22.2%
50.0%
4.2%
21.7%
2.2%
200,000
250,000
50,000
25.0%
3,035,000
3,184,800
149,800
4.9%
35,000
12,000
10,000
20,000
77,000
40,000
10,000
8,000
10,000
68,000
5,000
(2,000)
(2,000)
(10,000)
(9,000)
14.3%
-16.7%
-20.0%
-50.0%
-11.7%
1,200,000
1,180,000
(20,000)
-1.7%
12,000
17,000
Total Liabilties
1,289,000
1,265,000
(24,000)
Owners' Equity
Common Stock
Paid-in-Capital
Retained Earnings
Total Owners' Equity
1,000,000
746,000
1,746,000
1,000,000
25,000
894,800
1,919,800
25,000
148,800
173,800
19.9%
10.0%
Total Liabilities & Owner's Equity
3,035,000
3,184,800
149,800
4.9%
5,000
41.7%
-1.9%
0.0%
Cash Flow Statement

It shows the Company’s Cash Inflow and Outflow over a period of time

Differences between Income Statement and Cash Flow Statement




Represents the changes from last Year’s Balance Sheet to this Year’s
Balance Sheet






11
Timing Differences (Working Capital Activities)
Capital Expenses Vs Operating Expenses (Investment Activities)
Financing Expenses not included in the Income Statement (Financing
Activities)
Asset goes Up = Cash Negative
Asset goes down = Cash Positive
Liability goes up = Cash Positive
Liability goes down = Cash Negative
Owner’s Equity goes up = Cash Positive
Owner’s Equity goes down = Cash Negative
Cash Flow Statement
Balance Sheet (000's)
Current Assets
Cash
Accounts Receivable
Inventories
Prepaid Expenses
Total Current Assets
Property and Equipment
Land
Building
Furniture & Equipment
Total Gross P&E
Less Accumulated Depreciaition
Net P&E
Long-Term Investments
2009
2010
$ Change
Cash Flow Statement (000's)
45,000
45,000
35,000
10,000
135,000
65,800
60,000
40,000
9,000
174,800
2,500,000
450,000
50,000
3,000,000
(300,000)
2,700,000
2,500,000
550,000
75,000
3,125,000
(365,000)
2,760,000
20,800
15,000
5,000
(1,000)
39,800
100,000
25,000
125,000
(65,000)
60,000
200,000
250,000
50,000
3,035,000
3,184,800
149,800
35,000
12,000
10,000
20,000
77,000
40,000
10,000
8,000
10,000
68,000
5,000
(2,000)
(2,000)
(10,000)
(9,000)
1,200,000
1,180,000
(20,000)
12,000
17,000
Total Liabilties
1,289,000
1,265,000
(24,000)
Owners' Equity
Common Stock
Paid-in-Capital
Retained Earnings
Total Owners' Equity
1,000,000
746,000
1,746,000
1,000,000
25,000
894,800
1,919,800
25,000
148,800
173,800
Total Liabilities & Owner's Equity
3,035,000
3,184,800
149,800
Total Assets
Liabilities and Owners Equity
Current Liabilities
Accounts Payable
Accrued Income Taxes
Accrued Expenses
Current Portion of Long Term Debt
Total Current Liabilities
Long-Term Debt:
Deferred Income Taxes
12
Adjusting Income to Cash
5,000
Net Income
Plus Depreciation
Plus Deffered Taxes
Cash Income
2010
148,800
65,000
5,000
218,800
Cash Flow Statement
Balance Sheet (000's)
Current Assets
Cash
Accounts Receivable
Inventories
Prepaid Expenses
Total Current Assets
2009
2010
$ Change
45,000
45,000
35,000
10,000
135,000
65,800
60,000
40,000
9,000
174,800
2,500,000
450,000
50,000
3,000,000
(300,000)
2,700,000
2,500,000
550,000
75,000
3,125,000
(365,000)
2,760,000
100,000
25,000
125,000
(65,000)
60,000
200,000
250,000
50,000
3,035,000
3,184,800
149,800
35,000
12,000
10,000
20,000
77,000
40,000
10,000
8,000
10,000
68,000
5,000
(2,000)
(2,000)
(10,000)
(9,000)
1,200,000
1,180,000
(20,000)
12,000
17,000
Total Liabilties
1,289,000
1,265,000
(24,000)
Owners' Equity
Common Stock
Paid-in-Capital
Retained Earnings
Total Owners' Equity
1,000,000
746,000
1,746,000
1,000,000
25,000
894,800
1,919,800
25,000
148,800
173,800
Total Liabilities & Owner's Equity
3,035,000
3,184,800
149,800
Property and Equipment
Land
Building
Furniture & Equipment
Total Gross P&E
Less Accumulated Depreciaition
Net P&E
Long-Term Investments
Total Assets
20,800
15,000
5,000
(1,000)
39,800
Liabilities and Owners Equity
Current Liabilities
Accounts Payable
Accrued Income Taxes
Accrued Expenses
Current Portion of Long Term Debt
Total Current Liabilities
Long-Term Debt:
Deferred Income Taxes
13
Working Capital Activities
5,000
Cash Flow Statement (000's)
2010
Net Income
Plus Depreciation
Plus Deffered Taxes
Cash Income
148,800
65,000
5,000
218,800
Working Capital Activities
Change in Accounts Receivable
Change in Inventory
Change in Prepaid Expenses
Change in Accounts Payable
Change in Accrued Income Taxes
Change in Accrued Expenses
Total Change in Working Capital
(15,000)
(5,000)
1,000
5,000
(2,000)
(2,000)
(18,000)
Operating Cash Flow (OCF)
200,800
Cash Flow Statement
Balance Sheet (000's)
Current Assets
Cash
Accounts Receivable
Inventories
Prepaid Expenses
Total Current Assets
2009
2010
$ Change
Cash Flow Statement (000's)
45,000
45,000
35,000
10,000
135,000
65,800
60,000
40,000
9,000
174,800
20,800
15,000
5,000
(1,000)
39,800
2,500,000
450,000
50,000
3,000,000
(300,000)
2,700,000
2,500,000
550,000
75,000
3,125,000
(365,000)
2,760,000
100,000
25,000
125,000
(65,000)
60,000
200,000
250,000
50,000
3,035,000
3,184,800
149,800
35,000
12,000
10,000
20,000
77,000
40,000
10,000
8,000
10,000
68,000
5,000
(2,000)
(2,000)
(10,000)
(9,000)
1,200,000
1,180,000
(20,000)
12,000
17,000
Total Liabilties
1,289,000
1,265,000
(24,000)
Owners' Equity
Common Stock
Paid-in-Capital
Retained Earnings
Total Owners' Equity
1,000,000
746,000
1,746,000
1,000,000
25,000
894,800
1,919,800
25,000
148,800
173,800
Total Liabilities & Owner's Equity
3,035,000
3,184,800
149,800
Property and Equipment
Land
Building
Furniture & Equipment
Total Gross P&E
Less Accumulated Depreciaition
Net P&E
Long-Term Investments
Total Assets
Liabilities and Owners Equity
Current Liabilities
Accounts Payable
Accrued Income Taxes
Accrued Expenses
Current Portion of Long Term Debt
Total Current Liabilities
Long-Term Debt:
Deferred Income Taxes
14
Investment Activities
5,000
2010
Net Income
Plus Depreciation
Plus Deffered Taxes
Cash Income
148,800
65,000
5,000
218,800
Working Capital Activities
Change in Accounts Receivable
Change in Inventory
Change in Prepaid Expenses
Change in Accounts Payable
Change in Accrued Income Taxes
Change in Accrued Expenses
Total Change in Working Capital
(15,000)
(5,000)
1,000
5,000
(2,000)
(2,000)
(18,000)
Operating Cash Flow (OCF)
200,800
Investment Activities
Capital Expenditures
Investments (Change)
Total Financing Activities
Cash Available for Debt Service (CAFDS)
(125,000)
(50,000)
(175,000)
25,800
Cash Flow Statement
Balance Sheet (000's)
Current Assets
Cash
Accounts Receivable
Inventories
Prepaid Expenses
Total Current Assets
Property and Equipment
Land
Building
Furniture & Equipment
Total Gross P&E
Less Accumulated Depreciaition
Net P&E
Long-Term Investments
Total Assets
2009
2010
$ Change
45,000
45,000
35,000
10,000
135,000
65,800
60,000
40,000
9,000
174,800
20,800
15,000
5,000
(1,000)
39,800
2,500,000
450,000
50,000
3,000,000
(300,000)
2,700,000
2,500,000
550,000
75,000
3,125,000
(365,000)
2,760,000
100,000
25,000
125,000
(65,000)
60,000
200,000
250,000
50,000
3,035,000
3,184,800
149,800
Liabilities and Owners Equity
Current Liabilities
Accounts Payable
Accrued Income Taxes
Accrued Expenses
Current Portion of Long Term Debt
Total Current Liabilities
Long-Term Debt:
Deferred Income Taxes
15
Financing Activities
Cash Flow Statement (000's)
Net Income
Plus Depreciation
Plus Deffered Taxes
Cash Income
148,800
65,000
5,000
218,800
Working Capital Activities
Change in Accounts Receivable
Change in Inventory
Change in Prepaid Expenses
Change in Accounts Payable
Change in Accrued Income Taxes
Change in Accrued Expenses
Total Change in Working Capital
(15,000)
(5,000)
1,000
5,000
(2,000)
(2,000)
(18,000)
Operating Cash Flow (OCF)
200,800
35,000
12,000
10,000
20,000
77,000
40,000
10,000
8,000
10,000
68,000
5,000
(2,000)
(2,000)
(10,000)
(9,000)
Investment Activities
Capital Expenditures
Investments (Change)
Total Financing Activities
1,200,000
1,180,000
(20,000)
Cash Available for Debt Service (CAFDS)
12,000
17,000
Total Liabilties
1,289,000
1,265,000
(24,000)
5,000
Owners' Equity
Common Stock
Paid-in-Capital
Retained Earnings
Total Owners' Equity
1,000,000
746,000
1,746,000
1,000,000
25,000
894,800
1,919,800
25,000
148,800
173,800
Total Liabilities & Owner's Equity
3,035,000
3,184,800
149,800
2010
Financing Activities
ST Debt Payments
LT Payments
Equity Contribution
Total Financing Activities
Free Cash Flow
(125,000)
(50,000)
(175,000)
25,800
(10,000)
(20,000)
25,000
(5,000)
20,800
Cash Flow Statement
Cash Flow Statement (000's)
86 Net Income
87 Plus Depreciation
88 Plus Deffered Taxes
89 Cash Income
91 Working Capital Activities
92 Change in Accounts Receivable
93 Change in Inventory
94 Change in Prepaid Expenses
95 Change in Accounts Payable
96 Change in Accrued Income Taxes
97 Change in Accrued Expenses
98 Total Change in Working Capital
99
100 Operating Cash Flow (OCF)
102 Investment Activities
103 Capital Expenditures
104 Investments (Change)
105 Total Financing Activities
106
107 Cash Available for Debt Service (CAFDS)
16
Recap
2010
148,800
65,000
5,000
218,800
(15,000)
(5,000)
1,000
5,000
(2,000)
(2,000)
(18,000)
Balance Sheet (000's)
Retained Earnings
2009
746,000
2010
894,800
$ Change
148,800
Timing Differences
(Working Capital
Activities)
200,800
(125,000)
(50,000)
(175,000)
Investment Activities
25,800
109 Financing Activities
110
ST Debt Payments
111
LT Payments
112
Equity Contribution
113 Total Financing Activities
(10,000)
(20,000)
25,000
(5,000)
115 Free Cash Flow
20,800
117 Beginning Cash
45,000
119 Ending Cash
65,800
Financing Activities
Balance Sheet (000's)
Current Assets
Cash
2009
45,000
2010
65,800
$ Change
20,800
Financial Analysis

Management Discussion and Analysis (MD&A)

Equity & Bond Research – Wall Street Analysts

The Financial Statements could be used by analysts to project the
Company’s performance and valuation

For an effective performance of the Company, you need to ask the three
following questions:
1.
2.
3.
17
How is the Company doing versus Last Year
How is the Company doing versus its competitors / piers/ market
How is the Company doing versus expectations
Financial Ratio Analysis

Trend Analysis
2010
18
Definition
Trend Analysis Ratios
U.S. Revenue Growth
Europe Revenue Growth
Asia Revenue Growth
Total Revenue Growth
15.0%
16.7%
25.0%
15.6%
(Rev 2010/Rev 2009) -1
EBITDA Growth
12.5%
(EBITDA 2010/EBITDA 2009) -1
Financial Ratio Analysis

Liquidity Ratio

How well the Company manages Cash
2010
Liquidity Ratios
Current Ratio
Quick ratio
Accounts Receivable Turnover (ART)
Accounts Receivable Days
19
2.57x
1.85x
21.14x
17.26
Definition
CA/CL
(Cash + A/R) / CL
Revenue/Avg AR
365 / ART
Financial Ratio Analysis

Solvency Ratio

How well the Company manages Debt
2010
Solvency Ratios
LTD / Total Capitalization
EBITDA / Interest (Coverage Ratio)
LTD / EBITDA (Leverage Ratio)
20
38.1%
3.61x
2.73x
Definition
LTD / (LTD + Equity)
EBITDA / Interest
LTD / EBITDA
Financial Ratio Analysis

Activity and Operating Ratios

It measures productivity and efficiency for running the business
2010
Activity Ratios / Operating Ratios
Inventory Ratio (IR)
Inventory Ratio - Days
11.20x
32.59
Definition
Cost of Revenues/Avg Inventory
365 / IR
Please note that there are a lot of ratios establish by specialization (i.e. for a Hotel
company is Occupancy Rate or for a Cable company is revenue per subscriber)
21
Financial Ratio Analysis

Profitability Ratio

How profitable is the company
2010
Profitability Ratios
Gross Margin
EBITDA Margin
EBIT Margin
Return on Assets (ROA)
Gross Return on Assets
Return on Equity (ROE)
22
62.2%
39.0%
33.2%
4.8%
11.8%
8.1%
Definition
Gross Margin / Revenues
EBITDA / Revenue
EBIT / Revenue
NI / Avg Assets
EBIT / Avg Assets
NI / Avg Equity
Income Statement – Publicly Traded Company
Annual
Quarterly
31-Dec-10
31-Dec-09
31-Dec-08
31-Dec-07
30-Jun-11 31-Mar-11
31-Dec-10
30-Sep-10
5,316,000
1,885,000
3,431,000
5,071,000
1,800,000
3,271,000
4,696,000
1,737,000
2,959,000
5,907,000
2,184,936
3,722,064
6,153,000
2,235,664
3,917,336
1,426,000
493,000
933,000
1,295,000
472,000
823,000
1,340,000
470,000
870,000
1,255,000
450,000
805,000
Operating Expenses
Research Development
Selling General and Administrative
Non Recurring - One time
Others
Total Operating Expenses
2,559,000
(74,000)
271,000
2,756,000
2,461,000
(75,000)
285,000
2,671,000
2,245,000
379,000
309,000
2,933,000
2,639,064
141,000
323,000
3,103,064
2,700,336
53,000
306,000
3,059,336
689,000
67,000
756,000
635,000
68,000
703,000
622,000
(73,000)
65,000
614,000
613,000
(1,000)
71,000
683,000
Operating Income or Loss
Total Other Income/Expenses Net - One time
Earnings Before Interest And Taxes (EBIT)
Interest Expense
Earnings Before Taxes (EBT)
Income Tax Expense
Minority Interest
Earnings After Taxes (EAT)
675,000
(312,000)
363,000
221,000
142,000
2,000
140,000
600,000
(39,000)
561,000
236,000
325,000
27,000
2,000
300,000
26,000
(91,000)
(65,000)
227,000
(292,000)
(293,000)
2,000
3,000
619,000
(79,000)
666,000
210,000
456,000
76,000
380,000
858,000
43,000
666,001
168,000
498,001
189,000
(1,000)
308,001
177,000
(50,000)
127,000
52,000
75,000
(16,000)
91,000
120,000
(87,000)
33,000
54,000
(21,000)
10,000
2,000
(29,000)
256,000
(65,000)
191,000
56,000
135,000
(5,000)
140,000
122,000
(110,000)
12,000
59,000
(47,000)
11,000
(58,000)
112,000
252,000
252,000
167,000
467,000
467,000
74,000
77,000
77,000
75,000
455,000
455,000
(1,000)
307,001
307,001
(19,000)
72,000
72,000
(1,000)
(30,000)
(30,000)
133,000
273,000
273,000
(1,000)
(59,000)
(59,000)
PERIOD ENDING
Total Revenue
Cost of Revenue
Gross Profit
Non-recurring Events
Discontinued Operations
Extraordinary Items
Effect Of Accounting Changes
Other Items
Net Income
Preferred Stock And Other Adjustments
Net Income Applicable To Common Shares
23
LTM
30-Jun-11
Balance Sheet – Publicly Traded Company
PERIOD ENDING
Assets
Current Assets
Cash And Cash Equivalents
Short Term Investments
Net Receivables
Inventory
Other Current Assets
Total Current Assets
24
30-Jun-11
31-Dec-10
31-Dec-09
31-Dec-08
31-Dec-07
1,077,000
640,000
848,000
185,000
2,750,000
806,000
572,000
802,000
126,000
2,306,000
134,000
445,000
783,000
127,000
1,489,000
485,000
552,000
986,000
143,000
2,166,000
358,000
616,000
714,000
136,000
1,824,000
Long Term Investments
Property Plant and Equipment
Goodwill
Intangible Assets
Other Assets
Deferred Long Term Asset Charges
Total Assets
645,000
3,129,000
2,047,000
440,000
988,000
9,999,000
720,000
3,323,000
2,067,000
381,000
979,000
9,776,000
368,000
3,421,000
2,063,000
438,000
982,000
8,761,000
848,000
3,609,000
1,639,000
596,000
206,000
639,000
9,703,000
837,000
3,850,000
2,302,000
80,000
729,000
9,622,000
Liabilities
Current Liabilities
Accounts Payable
Short/Current Long Term Debt
Other Current Liabilities
Total Current Liabilities
Long Term Debt
Other Liabilities
Deferred Long Term Liability Charges
Minority Interest
Total Liabilities
2,009,000
733,000
2,742,000
2,489,000
1,935,000
30,000
1,000
7,197,000
2,025,000
136,000
2,161,000
3,215,000
1,886,000
28,000
15,000
7,305,000
2,022,000
5,000
2,027,000
2,955,000
1,903,000
31,000
21,000
6,937,000
2,182,000
506,000
2,688,000
3,502,000
719,000
1,150,000
23,000
8,082,000
2,096,000
5,000
2,101,000
3,590,000
1,801,000
28,000
26,000
7,546,000
Stockholders' Equity
Common Stock
Retained Earnings
Treasury Stock
Capital Surplus
Other Stockholder Equity
Total Stockholder Equity
Total Liabilities & Equity
2,000
2,106,000
901,000
(207,000)
2,802,000
9,999,000
2,000
1,947,000
805,000
(283,000)
2,471,000
9,776,000
2,000
1,553,000
552,000
(283,000)
1,824,000
8,761,000
2,000
1,517,000
493,000
(391,000)
1,621,000
9,703,000
2,000
1,353,000
868,000
(147,000)
2,076,000
9,622,000
Cash Flow Statement – Publicly Traded Company
Annual
31-Dec-10
477,000
217,000
9,000
31-Dec-09
73,000
245,000
161,000
31-Dec-08
329,000
245,000
249,000
31-Dec-07
542,000
229,000
69,000
Working Capital Activities
Changes In Accounts Receivables
Changes In Liabilities
Changes In Inventories
Changes In Other Operating Activities
Total Cash Flow From Operating Activities
(54,000)
101,000
(110,000)
45,000
795,000
(50,000)
213,000
(110,000)
10,000
766,000
230,000
(94,000)
(98,000)
56,000
573,000
(116,000)
63,000
(280,000)
156,000
646,000
(23,000)
387,000
(143,000)
(166,000)
895,000
(5,000)
(82,000)
2,000
133,000
Investing Activities
Capital Expenditures
Investments
Other Cashflows from Investing Activities
Total Cash Flows From Investing Activities
(298,000)
46,000
346,000
94,000
(227,000)
18,000
138,000
(71,000)
(196,000)
28,000
284,000
116,000
(476,000)
5,000
299,000
(172,000)
(384,000)
108,000
61,000
(215,000)
(59,000)
150,000
(88,000)
(37,000)
(34,000)
24,000
879,000
(93,000)
141,000
(64,000)
(30,000)
(46,000)
(1,000)
648,000
(165,000)
2,000
(1,057,000)
227,000
(993,000)
4,000
(300,000)
(172,000)
(473,000)
412,000
(10,000)
(243,000)
7,000
238,000
(90,000)
(1,597,000)
942,000
33,000
(712,000)
11,000
(21,000)
PERIOD ENDING
Net Income
Depreciation
Adjustments To Net Income
Financing Activities
Dividends Paid
Sale Purchase of Stock
Net Borrowings
Other Cash Flows from Financing Activities
Total Cash Flows From Financing Activities
Effect Of Exchange Rate Changes
Change In Cash and Cash Equivalents
25
Quarterly
LTM
30-Jun-11
492,000
201,000
120,000
30-Jun-11 31-Mar-11
131,000
28,000
46,000
47,000
41,000
49,000
31-Dec-10
339,000
57,000
(73,000)
30-Sep-10
-6,000
51,000
103,000
(4,000)
(2,000)
(127,000)
(9,000)
(32,000)
203,000
(110,000)
77,000
461,000
(13,000)
(18,000)
93,000
210,000
(80,000)
1,000
287,000
208,000
(61,000)
1,000
(9,000)
(69,000)
(108,000)
43,000
3,000
(62,000)
(49,000)
1,000
65,000
17,000
(1,000)
12,000
(39,000)
(2,000)
(30,000)
7,000
318,000
(2,000)
43,000
(37,000)
(27,000)
(23,000)
13,000
(88,000)
(56,000)
85,000
(40,000)
(2,000)
(13,000)
(2,000)
384,000
10,000
28,000
(6,000)
32,000
6,000
265,000
Ratio Analysis – Publicly Traded Company
PERIOD ENDING
EBITDA (Operating Income + Depreciation+Non Rec. Exp)
26
LTM
30-Jun-11
31-Dec-10
31-Dec-09
31-Dec-08
31-Dec-07
802,000
742,000
650,000
1,005,000
1,140,000
Liquidity Ratios
Current Ratio
Accounts Receivable Turnover
Accounts Receivable - Days
1.00x
9.62x
37.92x
1.07x
9.97x
36.60x
0.73x
9.42x
38.75x
0.81x
10.70x
34.11x
0.87x
9.99x
36.54x
Solvency Ratios
LTD / Total Capitalization
EBITDA / Interest (Interest Coverage)
LTD / EBITDA
53.5%
3.63x
4.02x
57.6%
3.14x
4.52x
61.9%
2.86x
4.55x
71.2%
4.79x
3.99x
63.4%
6.79x
3.15x
Profitability Ratios
Gross Margin
EBITDA Margin
Return on Assets (ROA)
Return on Equity (ROE)
64.5%
15.1%
2.6%
10.7%
64.5%
14.6%
5.0%
21.7%
63.0%
13.8%
0.8%
4.5%
63.0%
17.0%
4.7%
28.1%
63.7%
18.5%
3.2%
14.8%
Trend Analysis Ratios
Revenue Growth
4.8%
8.0%
-20.5%
-4.0%