MOODY’S KMV riskanalyst ™ Sample Reports MMAS Financial Template and Middle Market Internal Rating Template Copyright © 2006 Moody’s KMV Company. All rights reserved. Moody’s KMV, RiskAnalyst, Credit Monitor, Risk Advisor, CreditEdge, LossCalc, RiskCalc, Decisions, Benchmark, Expected Default Frequency, and EDF are trademarks of MIS Quality Management Corp. used under license. All other trademarks are the property of their respective owners. Acknowledgements: We would like to thank everyone at Moody’s KMV who contributed to this document. Published by: Moody’s KMV Company 405 Howard Street, Suite 300 San Francisco, CA 94105 USA Phone: +1.415.874.6000 Fax: +1.415.874.6799 Author: MKMV Email: docs@mkmv.com Website: www.moodyskmv.com To Learn More: Please contact your Moody’s KMV client representative, visit us online at www.moodyskmv.com, contact Moody’s KMV via e-mail at info@mkmv.com or call: from north and south america: +1.866.321.MKMV (6568) or +1 (415).874.6000 from europe, the middle east and africa: +44 (20) 7208 7300 from asia, new zealand, australia and india: +81 (3) 3218 1160 ™ RiskAnalyst MMAS Financial Template and Middle Market Internal Rating Template Sample Reports Table of Contents Financial Package Reports ........................................................................................................................................................4 Financial Reports .................................................................................................................................................................4 Detailed Balance Sheet – Actual............................................................................................................................................5 Detailed Comprehensive Income Statement – Actual............................................................................................................6 Detailed Income Statement – % ...........................................................................................................................................7 Detailed Balance Sheet – Actual and %.................................................................................................................................8 Detailed Comprehensive Income Statement – Actual and %.................................................................................................9 Detailed Income Statement – Exchange Rate......................................................................................................................10 Detailed Income Statement – Trend...................................................................................................................................11 Detailed Reconciliations .....................................................................................................................................................12 Detailed UCA Cash Flow ...................................................................................................................................................13 Detailed FAS 95 Stmt of Cash Flows (Indirect) ..................................................................................................................15 Detailed Ratios ...................................................................................................................................................................16 Cash Flow Management .....................................................................................................................................................17 Summary Balance Sheet – Actual........................................................................................................................................18 Summary Comprehensive Income Statement – Actual........................................................................................................19 Summary Income Statement – % .......................................................................................................................................20 Summary Balance Sheet – Actual and %.............................................................................................................................21 Summary Comprehensive Income Statement – Actual and %.............................................................................................22 Summary Reconciliations ...................................................................................................................................................23 Summary UCA Cash Flow .................................................................................................................................................24 Summary FAS 95 Stmt of Cash Flows (Indirect) ................................................................................................................25 Summary Ratios .................................................................................................................................................................26 Summary Cash Flow Management .....................................................................................................................................27 Executive Financial Statement – Actual and % ...................................................................................................................28 Executive Reconciliations & Ratios.....................................................................................................................................29 Executive FAS 95 Stmt of Cash Flows (Indirect).................................................................................................................30 Asset Based Lending Report................................................................................................................................................31 Balance Sheet Account Assumptions...................................................................................................................................32 Income Statement Account Assumptions............................................................................................................................33 Quick Projection Variables .................................................................................................................................................34 Peer Comparison Reports...................................................................................................................................................35 Peer Comparison – Detailed Balance Sheet – Actual...........................................................................................................36 Peer Comparison – Detailed Income Statement % .............................................................................................................37 Peer Comparison – Detailed Income Sheet – Actual and % ................................................................................................38 Peer Comparison – Summary Balance Sheet – Actual .........................................................................................................39 Peer Comparison – Summary Income Statement – %.........................................................................................................40 Peer Comparison – Summary Income Statement – Actual and % .......................................................................................41 Moody’s KMV Sample Reports Page 1 Peer Comparison – Executive Financial Statement – Actual................................................................................................42 Peer Comparison – Executive Financial Statement – % ......................................................................................................43 Peer Comparison – Ratios ..................................................................................................................................................44 Peer Comparison – Comparison of Industry Values............................................................................................................45 Consultant Reports ............................................................................................................................................................47 Quick Call Summary..........................................................................................................................................................48 Focus Questions Report......................................................................................................................................................49 Cash Flow Summary ..........................................................................................................................................................50 Financial Statements Alerts.................................................................................................................................................52 Summary of Financial Parameters.......................................................................................................................................53 EDF Measures Reports.......................................................................................................................................................54 RiskCalc for Private Firm ...................................................................................................................................................55 Credit Edge ........................................................................................................................................................................57 Long-Term Projection Reports...........................................................................................................................................59 Long-Term Projections: Detailed Balance Sheet – Actual....................................................................................................60 Long-Term Projections: Detailed Comprehensive Income Statement – Actual....................................................................61 Long-Term Projections: Detailed Balance Sheet – Actual and %.........................................................................................62 Long-Term Projections: Detailed Comprehensive Income Statement – Actual and %.........................................................63 Long-Term Projections: Detailed Income Statement – Exchange Rate................................................................................64 Long-Term Projections: Detailed Income Statement – Trend.............................................................................................65 Long-Term Projections: Detailed UCA Cash Flow .............................................................................................................66 Long-Term Projections: Detailed FAS 95 Stmt of Cash Flows (Indirect) ............................................................................67 Long-Term Projections: Cash Flow Management ...............................................................................................................68 Long-Term Projections: Summary Income Statement – Actual and %................................................................................69 Long-Term Projections: Summary FAS 95 Stmt of Cash Flows (Direct).............................................................................70 Long-Term Projections: Summary Ratios ...........................................................................................................................71 Long-Term Projections: Executive Financial Statement – Actual and % .............................................................................72 Long-Term Projections: Executive FAS 95 Stmt of Cash Flows (Direct) .............................................................................73 Long-Term Projections: RiskCalc for Private Firm Version 3.1...........................................................................................74 Short-Term Projection Reports ..........................................................................................................................................76 Short-Term Projections: Detailed Income Statement – Actual ............................................................................................77 Short-Term Projections: Detailed Reconciliations...............................................................................................................78 Short-Term Projections: Detailed FAS 95 Stmt of Cash Flows (Direct) ..............................................................................79 Short-Term Projections: Detailed Ratios.............................................................................................................................81 Short-Term Projections: Summary Balance Sheet – Actual .................................................................................................82 Short-Term Projections: Summary Comprehensive Income Statement – Actual .................................................................83 Short-Term Projections: Summary UCA Cash Flow...........................................................................................................84 Short-Term Projections: FAS 95 Stmt of Cash Flows (Indirect)..........................................................................................85 Short-Term Projections: Summary Cash Flow Management...............................................................................................86 Short-Term Projections: Executive Reconciliations & Ratios ..............................................................................................87 Short-Term Projections: Executive FAS 95 Stmt of Cash Flows (Indirect) ..........................................................................89 Moody’s KMV Sample Reports Page 2 Short-Term Projections: Credit Compliance Report ...........................................................................................................90 Short-Term Projections: Balance Sheet Account Assumptions ............................................................................................91 Short-Term Projections: Quick Projection Variables...........................................................................................................94 Miscellaneous Reports........................................................................................................................................................95 Chart of Accounts ..............................................................................................................................................................96 User-Defined Analyses......................................................................................................................................................100 Added and Relabeled Accounts.........................................................................................................................................100 Ratings Package Reports.......................................................................................................................................................101 Ratings Summary .............................................................................................................................................................102 Scorecard Detail ...............................................................................................................................................................103 Facility Summary – Committed........................................................................................................................................105 Facility Summary – Proposed ...........................................................................................................................................106 Facility Details – Committed............................................................................................................................................107 Facility Details – Proposed ...............................................................................................................................................108 Scorecard Detail (Explanation) .........................................................................................................................................109 Facility Explanation Report – Committed ........................................................................................................................111 Facility Explanation Report – Proposed ............................................................................................................................114 Moody’s KMV SupportLine .................................................................................................................................................117 Moody’s KMV Sample Reports Page 3 FINANCIAL PACKAGE REPORTS FINANCIAL REPORTS Financial Reports in the RiskAnalyst General Business Financial Template (MMAS) are used to analyze the historical trends of the borrower financial statement data. Financial Reports are available in the following formats: • Detailed – prints all accounts from the borrower’s financial statements, including added and relabeled accounts. • Summary – summarizes the borrower’s financial statements into primary financial reporting classifications. • Executive – summarizes the borrower’s financial statements into very high-level financial reporting classifications. In addition to the sample Financial Reports shown in this document, the following reports are also available: 1. Detailed Income Statement – Actual 2. Detailed Balance Sheet – % 3. Detailed Comprehensive Income Statement – % 4. Detailed Income Statement – Actual and % 5. Detailed Balance Sheet – Exchange Rate 6. Detailed Balance Sheet – Trend 7. Detailed FAS 95 Stmt of Cash Flows (Direct) 8. Summary Income Statement – Actual 9. Summary Balance Sheet –% 10. Summary Comprehensive Income Statement – % 11. Summary Income Statement – Actual and % 12. Summary FAS 95 Stmt of Cash Flows (Direct) 13. Executive Financial Statement – Actual 14. Executive Financial Statement – % 15. Executive FAS 95 Stmt of Cash Flows (Direct) 16. Notes to Financial Statements 17. Credit Compliance Report Moody’s KMV Sample Reports Page 4 Detailed Balance Sheet – Actual MMAS Sample Customer (MMASSample) Detailed Balance Sheet - Actual Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Unqualif'd Unqualif'd Accountant KPMG KPMG KPMG KPMG KPMG Analyst GJH GJH GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual Source Currency: USD United States Dollars CURRENT ASSETS Cash Accts/Notes Rec-Trade Bad Debt Reserve (-) Target Currency: USD United States Dollars 71 1,424 54 ¯ 1,370 1,936 88 ¯ 3,465 ¯ 121 1,744 54 ¯ 1,690 2,211 77 ¯ 4,099 ¯ 144 1,669 64 ¯ 1,605 2,141 59 ¯ 3,949 ¯ 90 1,842 86 ¯ 1,756 2,610 119 ¯ 4,575 ¯ 75 1,698 90 ¯ 1,608 3,056 131 ¯ 4,870 ¯ 1,644 182 ¯ 1,826 1,161 ¯ 665 12 42 ¯ 719 4,184 ¯ 1,885 282 ¯ 2,167 1,412 ¯ 755 14 122 ¯ 891 4,990 ¯ 1,922 356 ¯ 2,278 1,675 ¯ 603 18 66 ¯ 687 4,636 ¯ 2,011 421 ¯ 2,432 1,912 ¯ 520 20 20 ¯ 560 5,135 ¯ 2,957 568 ¯ 3,525 2,205 ¯ 1,320 22 22 ¯ 1,364 6,234 ¯ 433 199 651 277 ¯ 1,560 ¯ 1,200 226 832 236 ¯ 2,494 ¯ 1,148 142 583 214 30 ¯ 2,117 ¯ 1,134 115 980 222 ¯ 2,451 ¯ 1,475 169 1,139 281 ¯ 3,064 ¯ 907 ¯ 907 860 ¯ 860 630 ¯ 630 492 ¯ 492 1,347 ¯ 1,347 ¯ 2,467 ¯ 3,354 ¯ 2,747 ¯ 2,943 ¯ 4,411 ¯ ¯ TOTAL NET WORTH TOTAL LIABILITIES & NET WORTH 17 1,700 ¯ 1,717 4,184 17 1,619 ¯ 1,636 4,990 17 1,872 ¯ 1,889 4,636 17 2,175 ¯ 2,192 5,135 17 1,806 ¯ 1,823 6,234 1,905 1,717 ¯ 1,605 1,636 ¯ 1,832 1,889 ¯ 2,124 2,192 ¯ 1,806 1,823 ¯ ¯ Total Accts/Rec-Net Inventory Prepaid Expenses ¯ TOTAL CURRENT ASSETS ¯ NON-CURRENT ASSETS Property Plant & Equipment Furniture, Fixtures & Vehicles ¯ Gross Fixed Assets Accumulated Deprec (-) ¯ Total Fixed Assets - Net Cash Value Life Insurance Other Assets ¯ TOTAL NON-CURRENT ASSETS TOTAL ASSETS ¯ CURRENT LIABILITIES Note Payable - Bank CPLTD-Bank Accounts Payable-Trade Accrued Expenses Income Taxes Payable ¯ TOTAL CURRENT LIABILITIES ¯ NON-CURRENT LIABILITIES Long Term Debt ¯ TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET WORTH Common Stock Retained Earnings Working Capital Tang Net Worth-Actual ¯ Moody’s KMV Sample Reports Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Page 5 Detailed Comprehensive Income Statement – Actual MMAS Sample Customer (MMASSample) Detailed Comprehensive Income Statement - Actual Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Unqualif'd Unqualif'd Accountant KPMG KPMG KPMG KPMG KPMG Analyst GJH GJH GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual Source Currency: USD United States Dollars Target Currency: USD United States Dollars Net Sales - Manufacturing Division Net Sales - Catalog Division ¯ NET SALES/REVENUE 9,785 126 ¯ 9,911 9,523 445 ¯ 9,968 9,477 1,058 ¯ 10,535 9,564 2,284 ¯ 11,848 9,317 3,102 ¯ 12,419 Cost of Goods Sold Cost of Goods Sold - Depreciation 7,311 155 ¯ 7,466 ¯ 2,445 7,477 209 ¯ 7,686 ¯ 2,282 7,739 239 ¯ 7,978 ¯ 2,557 8,552 224 ¯ 8,776 ¯ 3,072 9,468 273 ¯ 9,741 ¯ 2,678 1,843 19 ¯ 1,862 ¯ 583 2,032 15 ¯ 2,047 ¯ 235 2,114 13 ¯ 2,127 ¯ 430 2,454 17 ¯ 2,471 ¯ 601 2,755 21 ¯ 2,776 ¯ (98) 68 14 42 ¯ (12) ¯ 571 126 46 2 ¯ (78) ¯ 157 147 47 ¯ (100) ¯ 330 153 32 13 ¯ (108) ¯ 493 306 35 ¯ (271) ¯ (369) NET PROFIT 122 ¯ 449 31 ¯ 126 77 ¯ 253 144 ¯ 349 ¯ (369) EBIT EBITDA EBIDA 639 813 691 283 507 476 477 729 652 646 887 743 (63) 231 231 COMPREHENSIVE INCOME 449 126 253 349 (369) Dividends - Common Adj to Retained Earnings (27) (40) ¯ (207) ¯ ¯ (46) ¯ ¯ ¯ TOTAL COST OF SALES/REV ¯ GROSS PROFIT SG & A Expense Depreciation ¯ TOTAL OPERATING EXPENSE ¯ NET OPERATING PROFIT Interest Expense (-) Other Income Gain(Loss) on Asset Sale ¯ TOTAL OTHER INCOME(EXP) ¯ PROFIT BEFORE TAXES Current Income Tax ¯ ¯ Moody’s KMV Sample Reports Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Page 6 Detailed Income Statement – % MMAS Sample Customer (MMASSample) Detailed Income Statement - % Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Unqualif'd Unqualif'd Accountant KPMG KPMG KPMG KPMG KPMG Analyst GJH GJH GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual Source Currency: USD United States Dollars Target Currency: USD United States Dollars Net Sales - Manufacturing Division Net Sales - Catalog Division ¯ NET SALES/REVENUE 98.7 1.3 ¯ 100.0 95.5 4.5 ¯ 100.0 90.0 10.0 ¯ 100.0 80.7 19.3 ¯ 100.0 75.0 25.0 ¯ 100.0 Cost of Goods Sold Cost of Goods Sold - Depreciation 73.8 1.6 ¯ 75.3 ¯ 24.7 75.0 2.1 ¯ 77.1 ¯ 22.9 73.5 2.3 ¯ 75.7 ¯ 24.3 72.2 1.9 ¯ 74.1 ¯ 25.9 76.2 2.2 ¯ 78.4 ¯ 21.6 18.6 0.2 ¯ 18.8 ¯ 5.9 20.4 0.2 ¯ 20.5 ¯ 2.4 20.1 0.1 ¯ 20.2 ¯ 4.1 20.7 0.1 ¯ 20.9 ¯ 5.1 22.2 0.2 ¯ 22.4 ¯ (0.8) 0.7 0.1 0.4 ¯ (0.1) ¯ 5.8 1.3 0.5 ¯ (0.8) ¯ 1.6 1.4 0.4 ¯ (0.9) ¯ 3.1 1.3 0.3 0.1 ¯ (0.9) ¯ 4.2 2.5 0.3 ¯ (2.2) ¯ (3.0) NET PROFIT 1.2 ¯ 4.5 0.3 ¯ 1.3 0.7 ¯ 2.4 1.2 ¯ 2.9 ¯ (3.0) EBIT EBITDA EBIDA 6.4 8.2 7.0 2.8 5.1 4.8 4.5 6.9 6.2 5.5 7.5 6.3 (0.5) 1.9 1.9 ¯ ¯ ¯ ¯ ¯ ¯ TOTAL COST OF SALES/REV ¯ GROSS PROFIT SG & A Expense Depreciation ¯ TOTAL OPERATING EXPENSE ¯ NET OPERATING PROFIT Interest Expense (-) Other Income Gain(Loss) on Asset Sale ¯ TOTAL OTHER INCOME(EXP) ¯ PROFIT BEFORE TAXES Current Income Tax ¯ ¯ Moody’s KMV Sample Reports Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Page 7 Detailed Balance Sheet – Actual and % MMAS Sample Customer (MMASSample) Detailed Balance Sheet - Actual and % Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 Months Covered 12 Audit Mthd Unqualif'd Accountant KPMG Analyst GJH Stmt Type Annual Source Currency: USD United States Dollars CURRENT ASSETS Cash Accts/Notes Rec-Trade Bad Debt Reserve (-) ¯ Total Accts/Rec-Net Inventory Prepaid Expenses ¯ TOTAL CURRENT ASSETS ¯ NON-CURRENT ASSETS Property Plant & Equipment Furniture, Fixtures & Vehicles ¯ Gross Fixed Assets Accumulated Deprec (-) ¯ Total Fixed Assets - Net Cash Value Life Insurance Other Assets ¯ TOTAL NON-CURRENT ASSETS TOTAL ASSETS ¯ CURRENT LIABILITIES Note Payable - Bank CPLTD-Bank Accounts Payable-Trade Accrued Expenses Income Taxes Payable ¯ TOTAL CURRENT LIABILITIES ¯ NON-CURRENT LIABILITIES Long Term Debt ¯ TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES ¯ NET WORTH Common Stock Retained Earnings ¯ TOTAL NET WORTH TOTAL LIABILITIES & NET WORTH Working Capital Tang Net Worth-Actual ¯ 6/30/2002 12 Unqualif'd KPMG GJH Annual 6/30/2003 12 Unqualif'd KPMG GJH Annual Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 6/30/2005 12 Unqualif'd KPMG GJH Annual 6/30/2004 12 Unqualif'd KPMG GJH Annual Target Currency: USD United States Dollars 71 1,424 54 ¯ 1,370 1,936 88 ¯ 3,465 1.7 34.0 1.3 ¯ 32.7 46.3 2.1 ¯ 82.8 121 1,744 54 ¯ 1,690 2,211 77 ¯ 4,099 2.4 34.9 1.1 ¯ 33.9 44.3 1.5 ¯ 82.1 144 1,669 64 ¯ 1,605 2,141 59 ¯ 3,949 3.1 36.0 1.4 ¯ 34.6 46.2 1.3 ¯ 85.2 90 1,842 86 ¯ 1,756 2,610 119 ¯ 4,575 1.8 35.9 1.7 ¯ 34.2 50.8 2.3 ¯ 89.1 75 1,698 90 ¯ 1,608 3,056 131 ¯ 4,870 1.2 27.2 1.4 ¯ 25.8 49.0 2.1 ¯ 78.1 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 1,644 39.3 1,885 37.8 1,922 41.5 2,011 39.2 2,957 47.4 182 4.3 282 5.7 356 7.7 421 8.2 568 9.1 ¯ 1,826 1,161 ¯ 665 12 42 ¯ 719 ¯ 43.6 27.7 ¯ 15.9 0.3 1.0 ¯ 17.2 ¯ 2,167 1,412 ¯ 755 14 122 ¯ 891 ¯ 43.4 28.3 ¯ 15.1 0.3 2.4 ¯ 17.9 ¯ 2,278 1,675 ¯ 603 18 66 ¯ 687 ¯ 49.1 36.1 ¯ 13.0 0.4 1.4 ¯ 14.8 ¯ 2,432 1,912 ¯ 520 20 20 ¯ 560 ¯ 47.4 37.2 ¯ 10.1 0.4 0.4 ¯ 10.9 ¯ 3,525 2,205 ¯ 1,320 22 22 ¯ 1,364 ¯ 56.5 35.4 ¯ 21.2 0.4 0.4 ¯ 21.9 4,184 ¯ 100.0 ¯ 4,990 ¯ 100.0 ¯ 4,636 ¯ 100.0 ¯ 5,135 ¯ 100.0 ¯ 6,234 ¯ 100.0 ¯ 433 199 651 277 ¯ 1,560 10.3 4.8 15.6 6.6 ¯ 37.3 1,200 226 832 236 ¯ 2,494 24.0 4.5 16.7 4.7 ¯ 50.0 1,148 142 583 214 30 ¯ 2,117 24.8 3.1 12.6 4.6 0.6 ¯ 45.7 1,134 115 980 222 ¯ 2,451 22.1 2.2 19.1 4.3 ¯ 47.7 1,475 169 1,139 281 ¯ 3,064 23.7 2.7 18.3 4.5 ¯ 49.1 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 907 ¯ 907 21.7 ¯ 21.7 860 ¯ 860 17.2 ¯ 17.2 630 ¯ 630 13.6 ¯ 13.6 492 ¯ 492 9.6 ¯ 9.6 1,347 ¯ 1,347 21.6 ¯ 21.6 2,467 ¯ 59.0 ¯ 3,354 ¯ 67.2 ¯ 2,747 ¯ 59.3 ¯ 2,943 ¯ 57.3 ¯ 4,411 ¯ 70.8 ¯ 17 1,700 ¯ 1,717 4,184 0.4 40.6 ¯ 41.0 100.0 17 1,619 ¯ 1,636 4,990 0.3 32.4 ¯ 32.8 100.0 17 1,872 ¯ 1,889 4,636 0.4 40.4 ¯ 40.7 100.0 17 2,175 ¯ 2,192 5,135 0.3 42.4 ¯ 42.7 100.0 17 1,806 ¯ 1,823 6,234 0.3 29.0 ¯ 29.2 100.0 1,905 1,717 ¯ 45.5 41.0 ¯ 1,605 1,636 ¯ 32.2 32.8 ¯ 1,832 1,889 ¯ 39.5 40.7 ¯ 2,124 2,192 ¯ 41.4 42.7 ¯ 1,806 1,823 ¯ 29.0 29.2 ¯ Moody’s KMV Sample Reports Page 8 Detailed Comprehensive Income Statement – Actual and % MMAS Sample Customer (MMASSample) Detailed Comprehensive Income Statement - Actual and % Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 Months Covered 12 12 Audit Mthd Unqualif'd Unqualif'd Accountant KPMG KPMG Analyst GJH GJH Stmt Type Annual Annual Source Currency: USD United States Dollars 6/30/2003 12 Unqualif'd KPMG GJH Annual Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 6/30/2005 12 Unqualif'd KPMG GJH Annual 6/30/2004 12 Unqualif'd KPMG GJH Annual Target Currency: USD United States Dollars Net Sales - Manufacturing Division Net Sales - Catalog Division ¯ NET SALES/REVENUE 9,785 98.7 9,523 95.5 9,477 90.0 9,564 80.7 9,317 75.0 126 ¯ 9,911 1.3 ¯ 100.0 445 ¯ 9,968 4.5 ¯ 100.0 1,058 ¯ 10,535 10.0 ¯ 100.0 2,284 ¯ 11,848 19.3 ¯ 100.0 3,102 ¯ 12,419 25.0 ¯ 100.0 Cost of Goods Sold Cost of Goods Sold Depreciation 7,311 155 73.8 1.6 7,477 209 75.0 2.1 7,739 239 73.5 2.3 8,552 224 72.2 1.9 9,468 273 76.2 2.2 ¯ ¯ 7,466 ¯ 75.3 ¯ 7,686 ¯ 77.1 ¯ 7,978 ¯ 75.7 ¯ 8,776 ¯ 74.1 ¯ 9,741 ¯ 78.4 ¯ ¯ 2,445 ¯ 24.7 ¯ 2,282 ¯ 22.9 ¯ 2,557 ¯ 24.3 ¯ 3,072 ¯ 25.9 ¯ 2,678 ¯ 21.6 1,843 19 ¯ 1,862 18.6 0.2 ¯ 18.8 2,032 15 ¯ 2,047 20.4 0.2 ¯ 20.5 2,114 13 ¯ 2,127 20.1 0.1 ¯ 20.2 2,454 17 ¯ 2,471 20.7 0.1 ¯ 20.9 2,755 21 ¯ 2,776 22.2 0.2 ¯ 22.4 ¯ 583 ¯ 5.9 ¯ 235 ¯ 2.4 ¯ 430 ¯ 4.1 ¯ 601 ¯ 5.1 ¯ (98) ¯ (0.8) 68 14 42 ¯ (12) 0.7 0.1 0.4 ¯ (0.1) 126 46 2 ¯ (78) 1.3 0.5 ¯ (0.8) 147 47 ¯ (100) 1.4 0.4 ¯ (0.9) 153 32 13 ¯ (108) 1.3 0.3 0.1 ¯ (0.9) 306 35 ¯ (271) 2.5 0.3 ¯ (2.2) ¯ 571 ¯ 5.8 ¯ 157 ¯ 1.6 ¯ 330 ¯ 3.1 ¯ 493 ¯ 4.2 ¯ (369) ¯ (3.0) NET PROFIT 122 ¯ 449 1.2 ¯ 4.5 31 ¯ 126 0.3 ¯ 1.3 77 ¯ 253 0.7 ¯ 2.4 144 ¯ 349 1.2 ¯ 2.9 ¯ (369) ¯ (3.0) EBIT EBITDA EBIDA 639 813 691 6.4 8.2 7.0 283 507 476 2.8 5.1 4.8 477 729 652 4.5 6.9 6.2 646 887 743 5.5 7.5 6.3 (63) 231 231 (0.5) 1.9 1.9 COMPREHENSIVE INCOME 449 4.5 126 1.3 253 2.4 349 2.9 (369) (3.0) Dividends - Common Adj to Retained Earnings (27) (40) ¯ ¯ (207) ¯ ¯ ¯ ¯ (46) ¯ ¯ ¯ ¯ TOTAL COST OF SALES/REV GROSS PROFIT SG & A Expense Depreciation ¯ TOTAL OPERATING EXPENSE ¯ NET OPERATING PROFIT Interest Expense (-) Other Income Gain(Loss) on Asset Sale ¯ TOTAL OTHER INCOME(EXP) ¯ PROFIT BEFORE TAXES Current Income Tax ¯ ¯ Moody’s KMV Sample Reports Page 9 Detailed Income Statement – Exchange Rate MMAS Sample Customer (MMASSample) Detailed Income Statement - Exchange Rate Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 Months Covered 12 12 Audit Mthd Unqualif'd Unqualif'd Accountant KPMG KPMG Analyst GJH GJH Stmt Type Annual Annual Currency Target Source Target Source Currency: USD United States Dollars Exchange Rate 6/30/2004 12 Unqualif'd KPMG GJH Annual Source Target Target Currency: USD United States Dollars 1.00000 Net Sales - Manufacturing Division Net Sales - Catalog Division 6/30/2003 12 Unqualif'd KPMG GJH Annual Source Target Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 6/30/2005 12 Unqualif'd KPMG GJH Annual Source Target Source 1.00000 1.00000 1.00000 1.00000 9,785 9,785 9,523 9,523 9,477 9,477 9,564 9,564 9,317 9,317 126 ¯ 9,911 126 ¯ 9,911 445 ¯ 9,968 445 ¯ 9,968 1,058 ¯ 10,535 1,058 ¯ 10,535 2,284 ¯ 11,848 2,284 ¯ 11,848 3,102 ¯ 12,419 3,102 ¯ 12,419 Cost of Goods Sold Cost of Goods Sold Depreciation 7,311 155 7,311 155 7,477 209 7,477 209 7,739 239 7,739 239 8,552 224 8,552 224 9,468 273 9,468 273 ¯ TOTAL COST OF SALES/REV ¯ GROSS PROFIT ¯ 7,466 ¯ 2,445 ¯ 7,466 ¯ 2,445 ¯ 7,686 ¯ 2,282 ¯ 7,686 ¯ 2,282 ¯ 7,978 ¯ 2,557 ¯ 7,978 ¯ 2,557 ¯ 8,776 ¯ 3,072 ¯ 8,776 ¯ 3,072 ¯ 9,741 ¯ 2,678 ¯ 9,741 ¯ 2,678 1,843 19 ¯ 1,862 1,843 19 ¯ 1,862 2,032 15 ¯ 2,047 2,032 15 ¯ 2,047 2,114 13 ¯ 2,127 2,114 13 ¯ 2,127 2,454 17 ¯ 2,471 2,454 17 ¯ 2,471 2,755 21 ¯ 2,776 2,755 21 ¯ 2,776 ¯ 583 ¯ 583 ¯ 235 ¯ 235 ¯ 430 ¯ 430 ¯ 601 ¯ 601 ¯ (98) ¯ (98) 68 14 42 ¯ (12) 68 14 42 ¯ (12) 126 46 2 ¯ (78) 126 46 2 ¯ (78) 147 47 ¯ (100) 147 47 ¯ (100) 153 32 13 ¯ (108) 153 32 13 ¯ (108) 306 35 ¯ (271) 306 35 ¯ (271) ¯ 571 ¯ 571 ¯ 157 ¯ 157 ¯ 330 ¯ 330 ¯ 493 ¯ 493 ¯ (369) ¯ (369) NET PROFIT 122 ¯ 449 122 ¯ 449 31 ¯ 126 31 ¯ 126 77 ¯ 253 77 ¯ 253 144 ¯ 349 144 ¯ 349 ¯ (369) ¯ (369) EBIT EBITDA EBIDA 639 813 691 639 813 691 283 507 476 283 507 476 477 729 652 477 729 652 646 887 743 646 887 743 (63) 231 231 (63) 231 231 Dividends - Common Adj to Retained Earnings (27) (40) ¯ (27) (40) ¯ (207) ¯ (207) ¯ ¯ ¯ (46) ¯ (46) ¯ ¯ ¯ ¯ NET SALES/REVENUE SG & A Expense Depreciation ¯ TOTAL OPERATING EXPENSE ¯ NET OPERATING PROFIT Interest Expense (-) Other Income Gain(Loss) on Asset Sale ¯ TOTAL OTHER INCOME(EXP) ¯ PROFIT BEFORE TAXES Current Income Tax ¯ ¯ Moody’s KMV Sample Reports Page 10 Detailed Income Statement – Trend MMAS Sample Customer (MMASSample) Detailed Income Statement - Trend Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 Months Covered 12 12 Audit Mthd Unqualif'd Unqualif'd Accountant KPMG KPMG Analyst GJH Trend GJH Stmt Type Annual % Chg Annual Source Currency: USD United States Dollars Net Sales - Manufacturing Division Net Sales - Catalog Division NET SALES/REVENUE 126 ¯ 9,911 Cost of Goods Sold Cost of Goods Sold Depreciation 7,311 155 ¯ TOTAL COST OF SALES/REV ¯ GROSS PROFIT ¯ 7,466 ¯ 2,445 SG & A Expense Depreciation ¯ TOTAL OPERATING EXPENSE ¯ NET OPERATING PROFIT Interest Expense (-) Other Income Gain(Loss) on Asset Sale ¯ TOTAL OTHER INCOME(EXP) ¯ PROFIT BEFORE TAXES Current Income Tax 1,843 19 ¯ 1,862 ¯ 583 68 14 42 ¯ (12) ¯ 571 6/30/2004 12 Unqualif'd KPMG Trend GJH % Chg Annual Target Currency: USD United States Dollars 9,785 ¯ 6/30/2003 12 Unqualif'd KPMG Trend GJH % Chg Annual ¯ ¯ ¯ ¯ ¯ ¯ ¯ 9,523 (2.7) 9,477 (0.5) 9,564 0.9 9,317 (2.6) 445 ¯ 9,968 253.2 ¯ 0.6 1,058 ¯ 10,535 137.8 ¯ 5.7 2,284 ¯ 11,848 115.9 ¯ 12.5 3,102 ¯ 12,419 35.8 ¯ 4.8 7,477 209 2.3 34.8 7,739 239 3.5 14.4 8,552 224 10.5 (6.3) 9,468 273 10.7 21.9 ¯ 7,686 ¯ 2,282 ¯ 2.9 ¯ (6.7) ¯ 7,978 ¯ 2,557 ¯ 3.8 ¯ 12.1 ¯ 8,776 ¯ 3,072 ¯ 10.0 ¯ 20.1 ¯ 9,741 ¯ 2,678 ¯ 11.0 ¯ (12.8) 2,032 15 ¯ 2,047 10.3 (21.1) ¯ 9.9 2,114 13 ¯ 2,127 4.0 (13.3) ¯ 3.9 2,454 17 ¯ 2,471 16.1 30.8 ¯ 16.2 2,755 21 ¯ 2,776 12.3 23.5 ¯ 12.3 ¯ 235 ¯ (59.7) ¯ 430 ¯ 83.0 ¯ 601 ¯ 39.8 ¯ (98) ¯ (116.3) 126 46 2 ¯ (78) 85.3 228.6 (95.2) ¯ 550.0 147 47 ¯ (100) 16.7 2.2 (100.0) ¯ 28.2 153 32 13 ¯ (108) 4.1 (31.9) ¯ 8.0 306 35 ¯ (271) 100.0 9.4 (100.0) ¯ 150.9 ¯ 157 ¯ (72.5) ¯ 330 ¯ 110.2 ¯ 493 ¯ 49.4 ¯ (369) ¯ (174.8) 31 ¯ 126 (74.6) ¯ (71.9) 77 ¯ 253 148.4 ¯ 100.8 144 ¯ 349 87.0 ¯ 37.9 ¯ (369) (100.0) ¯ (205.7) 35.4 21.7 14.0 (63) 231 231 (109.8) (74.0) (68.9) (100.0) ¯ ¯ NET PROFIT 122 ¯ 449 EBIT EBITDA EBIDA 639 813 691 283 507 476 (55.7) (37.6) (31.1) 477 729 652 68.6 43.8 37.0 646 887 743 Dividends - Common Adj to Retained Earnings (27) (40) ¯ (207) ¯ 666.7 (100.0) ¯ ¯ (100.0) (46) ¯ ¯ ¯ Moody’s KMV Sample Reports Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 6/30/2005 12 Unqualif'd KPMG Trend GJH Trend % Chg Annual % Chg ¯ ¯ ¯ ¯ Page 11 Detailed Reconciliations MMAS Sample Customer (MMASSample) Detailed Reconciliations Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Analyst GJH GJH GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual Reconciliation of Retained Earnings ¯ ¯ ¯ ¯ BEGINNING RETAINED EARNINGS, AS PREVIOUSLY REPORTED 1,700 1,619 ¯ ¯ ¯ BEG RET. EARNINGS, RESTATED 1,700 1,619 Net Profit 126 253 Dividends - Common (207) ENDING RETAINED EARNINGS 1,619 1,872 ¯ ¯ ¯ ¯ Reconciliation of Net Worth ¯ ¯ ¯ ¯ BEGINNING NET WORTH 1,717 1,636 Net Profit 126 253 Div & Withdrawals-Cash (207) ACTUAL ENDING NET WORTH 1,636 1,889 INCR(DECR) IN NET WORTH (81) 253 ¯ ¯ ¯ ¯ Reconciliation of Working Capital ¯ ¯ ¯ ¯ BEGINNING WORKING CAPITAL 1,905 1,605 Decrease(Increase) in Non-Current Assets: Total Fixed Assets-Net (90) 152 Cash Value Life Insurance (2) (4) Other Assets (80) 56 Increase(Decrease) in Non-Current Liabilities: Long Term Debt (47) (230) Increase(Decrease) in Net Worth (81) 253 ENDING WORKING CAPITAL 1,605 1,832 ¯ ¯ ¯ ¯ Moody’s KMV Sample Reports ¯ Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) ¯ 1,872 ¯ 1,872 349 (46) 2,175 ¯ 2,175 ¯ 2,175 (369) 1,806 ¯ ¯ 1,889 349 (46) 2,192 303 ¯ ¯ 2,192 (369) 1,823 (369) ¯ ¯ 1,832 ¯ 2,124 83 (2) 46 (800) (2) (2) (138) 303 2,124 ¯ 855 (369) 1,806 ¯ Page 12 Detailed UCA Cash Flow MMAS Sample Customer (MMASSample) Detailed UCA Cash Flow Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Analyst GJH GJH GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual Net Sales - Manufacturing Division Net Sales - Catalog Division Chg in Accts/Notes Rec-Trade Chg in Bad Debt Reserve (-) ¯ Cash Collected From Sales 9,523 445 (320) ¯ 9,648 9,477 1,058 75 10 ¯ 10,620 9,564 2,284 (173) 22 ¯ 11,697 9,317 3,102 144 4 ¯ 12,567 (7,477) (275) 181 ¯ (7,571) ¯ (7,739) 70 (249) ¯ (7,918) ¯ (8,552) (469) 397 ¯ (8,624) ¯ (9,468) (446) 159 ¯ (9,755) ¯ 2,077 2,702 3,073 2,812 (2,032) 11 (41) ¯ (2,062) ¯ 15 (2,114) 18 (22) ¯ (2,118) ¯ 584 (2,454) (60) 8 ¯ (2,506) ¯ 567 (2,755) (12) 59 ¯ (2,708) ¯ 104 46 (31) ¯ 15 ¯ 30 ¯ 47 (77) 30 ¯ ¯ 584 ¯ 32 (144) (30) ¯ (142) ¯ 425 ¯ 35 ¯ 35 ¯ 139 ¯ (126) (207) ¯ (333) ¯ (303) (147) ¯ (147) ¯ 437 (153) (46) ¯ (199) ¯ 226 (306) ¯ (306) ¯ (167) (199) ¯ (199) ¯ (502) (226) ¯ (226) ¯ 211 (142) ¯ (142) ¯ 84 (115) ¯ (115) ¯ (282) Chg in Property Plant & Equipment Chg in Furniture, Fixtures & Vehicles Chg in Accumulated Deprec (-) Cost of Goods Sold - Depreciation Depreciation Gain(Loss) on Asset Sale ¯ Chg in Net Fixed Assets (241) (100) (37) (74) (89) (65) (946) (147) 251 (209) (15) 2 ¯ (312) 263 (239) (13) ¯ (100) 237 (224) (17) 13 ¯ (145) 293 (273) (21) ¯ (1,094) Chg in Cash Value Life Insurance Chg in Other Assets (2) (80) ¯ (82) (4) 56 ¯ 52 (2) 46 ¯ 44 (2) (2) ¯ (4) ¯ (394) ¯ (48) ¯ (101) ¯ (1,098) Cost of Goods Sold Chg in Inventory Chg in Accounts Payable-Trade ¯ Cash Paid To Suppliers ¯ CASH FROM TRADING ACTIVITIES SG & A Expense Chg in Prepaid Expenses Chg in Accrued Expenses ¯ Cash Paid for Operating Costs ¯ CASH AFTER OPERATIONS Other Income Current Income Tax Chg in Income Taxes Payable ¯ Other Income(Exp) & Taxes Paid ¯ NET CASH AFTER OPERATIONS ¯ Interest Expense (-) Dividends - Common ¯ Cash Paid for Dividends & Interest ¯ NET CASH INCOME CPLTD-Bank ¯ Current Portion Long Term Debt ¯ CASH AFTER DEBT AMORT. ¯ Chg in Investments ¯ Cash Paid for Plant and Investments Moody’s KMV Sample Reports ¯ Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Page 13 FINANCING SURPLUS (REQMNTS) Chg in Note Payable - Bank Chg in Long Term Debt ¯ Total External Financing ¯ CASH AFTER FINANCING Add: Cash ¯ ENDING CASH & EQUIVALENTS ¯ Moody’s KMV Sample Reports ¯ (896) 163 (17) (1,380) 767 179 ¯ 946 ¯ 50 (52) (88) ¯ (140) ¯ 23 (14) (23) ¯ (37) ¯ (54) 341 1,024 ¯ 1,365 ¯ (15) 71 ¯ 121 ¯ 121 ¯ 144 ¯ 144 ¯ 90 ¯ 90 ¯ 75 ¯ Page 14 Detailed FAS 95 Stmt of Cash Flows (Indirect) MMAS Sample Customer (MMASSample) Detailed FAS 95 Stmt of Cash Flows (Indirect) Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Analyst GJH GJH GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual CASH FLOWS FROM OPERATING ACTIVITIES: Net Income 126 253 349 (369) 209 15 (2) (320) (275) 11 181 (41) ¯ (222) ¯ 239 13 75 10 70 18 (249) (22) 30 ¯ 184 ¯ 224 17 (13) (173) 22 (469) (60) 397 8 (30) ¯ (77) ¯ 273 21 144 4 (446) (12) 159 59 ¯ 202 ¯ ¯ (96) ¯ 437 ¯ 272 ¯ (167) ¯ CASH FLOWS FROM INVESTING ACTIVITIES: Chg in Property Plant & Equipment Chg in Furniture, Fixtures & Vehicles Chg in Accumulated Deprec (-) Cost of Goods Sold - Depreciation Depreciation Gain(Loss) on Asset Sale ¯ Chg in Net Fixed Assets (241) (100) 251 (209) (15) 2 ¯ (312) (37) (74) 263 (239) (13) ¯ (100) (89) (65) 237 (224) (17) 13 ¯ (145) (946) (147) 293 (273) (21) ¯ (1,094) (2) (80) ¯ (82) (4) 56 ¯ 52 (2) 46 ¯ 44 (2) (2) ¯ (4) NET CASH USED IN INVESTING ¯ (394) ¯ (48) ¯ (101) ¯ (1,098) CASH FLOWS FROM FINANCING ACTIVITIES: Chg in Note Payable - Bank Chg in CPLTD-Bank Chg in Long Term Debt ¯ Net Chg in Borrowings Dividends - Common ¯ NET CASH PROV BY FINANCING 767 27 (47) ¯ 747 (207) ¯ 540 (52) (84) (230) ¯ (366) ¯ (366) (14) (27) (138) ¯ (179) (46) ¯ (225) 341 54 855 ¯ 1,250 ¯ 1,250 ¯ 50 ¯ 23 ¯ (54) ¯ (15) 71 ¯ 121 ¯ 121 ¯ 144 ¯ 144 ¯ 90 ¯ 90 ¯ 75 ¯ Reconciling Items Cost of Goods Sold - Depreciation Depreciation Gain(Loss) on Asset Sale Chg in Accts/Notes Rec-Trade Chg in Bad Debt Reserve (-) Chg in Inventory Chg in Prepaid Expenses Chg in Accounts Payable-Trade Chg in Accrued Expenses Chg in Income Taxes Payable ¯ Total Adjustments ¯ NET CASH PROVIDED BY OPERATIONS ¯ Chg in Cash Value Life Insurance Chg in Other Assets ¯ Chg in Investments ¯ ¯ CHANGE IN CASH & EQUIV. Add: Cash ¯ CASH AND EQUIVALENTS AT EOP ¯ Moody’s KMV Sample Reports ¯ Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Page 15 Detailed Ratios MMAS Sample Customer (MMASSample) Detailed Ratios Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Analyst GJH GJH GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual LIQUIDITY Working Capital Quick Ratio Current Ratio Net Sales/Working Capital 1,905 0.92 2.22 5.20 1,605 0.73 1.64 6.21 1,832 0.83 1.87 5.75 2,124 0.75 1.87 5.58 1,806 0.55 1.59 6.88 LEVERAGE Net Worth-Actual Tang Net Worth-Actual Eff Tang Net Worth-Actual Debt/Worth Debt/Tang Worth Debt Less Sub Debt-Liability/Eff Tg Wth Borrowed Funds/Eff Tg Worth LT Debt/Net Fixed Assets Total Liabilities/Total Assets 1,717 1,717 1,717 1.44 1.44 1.44 0.90 1.66 0.59 1,636 1,636 1,636 2.05 2.05 2.05 1.40 1.44 0.67 1,889 1,889 1,889 1.45 1.45 1.45 1.02 1.28 0.59 2,192 2,192 2,192 1.34 1.34 1.34 0.79 1.17 0.57 1,823 1,823 1,823 2.42 2.42 2.42 1.64 1.15 0.71 9.40 2.99 813 691 3.04 2.25 0.63 0.72 0.05 0.06 1.44 1.56 507 476 1.44 3.24 3.56 2.23 2.02 1.57 2.52 1.95 729 652 2.52 4.22 4.73 3.83 1.35 1.25 3.31 3.01 887 743 3.31 (0.21) (0.44) (0.65) 0.29 0.33 0.49 0.55 231 231 0.49 PROFITABILITY (%) Return on Assets Return on Equity Gross Margin Gross Margin (plus Depr) % Operating Expense % Operating Expense (excl Depr) % Operating Profit Margin Operating Profit Margin (plus Depr) % Net Margin Dividend Payout Rate Effective Tax Rate 10.73 26.15 24.67 26.23 18.79 18.60 5.88 7.64 4.53 6.01 21.37 2.53 7.70 22.89 24.99 20.54 20.39 2.36 4.60 1.26 164.29 19.75 5.46 13.39 24.27 26.54 20.19 20.07 4.08 6.47 2.40 23.33 6.80 15.92 25.93 27.82 20.86 20.71 5.07 7.11 2.95 13.18 29.21 (5.92) (20.24) 21.56 23.76 22.35 22.18 (0.79) 1.58 (2.97) - ACTIVITY Gross Accounts Receivable Days Net Accounts Receivable Days Inventory Days on Hand Inventory Days on Hand (excl Depr) Accounts Payable Days Accounts Payable Days (excl Depr) Net Sales/Total Assets Net Sales/Net Worth Net Sales/Net Fixed Assets Profit Before Taxes/Total Assets (%) 52.44 50.45 94.65 96.65 31.83 32.50 2.37 5.77 14.90 13.65 63.86 61.88 105.00 107.93 39.51 40.62 2.00 6.09 13.20 3.15 57.82 55.61 97.95 100.98 26.67 27.50 2.27 5.58 17.47 7.12 56.75 54.10 108.55 111.39 40.76 41.83 2.31 5.41 22.78 9.60 49.90 47.26 114.51 117.81 42.68 43.91 1.99 6.81 9.41 (5.92) 32.59 19.26 35.95 (4.72) 0.58 (59.69) (71.94) (4.72) (7.09) (18.10) 15.46 5.69 82.98 100.79 15.46 10.76 7.14 16.04 12.46 39.77 37.94 16.04 21.40 49.88 (16.83) 4.82 N/A N/A (16.83) COVERAGE Interest Coverage Net Income+Depr+Amort-Divs/CPLTD Net Income+Depr+Amort-Divs/CPLTD pp UCA Cash Flow Coverage UCA Cash Flow/CPLTD pp EBITDA/Interest Exp+CPLTD EBITDA/Interest Exp+CPLTD pp EBITDA EBIDA Fixed Charge Coverage GROWTH (%) Total Assets Growth Total Liabilities Growth Net Worth Growth Net Sales Growth Operating Profit Growth Net Profit Growth Sustainable Growth 3.04 Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) ¯ Moody’s KMV Sample Reports Page 16 Cash Flow Management MMAS Sample Customer (MMASSample) Cash Flow Management Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Stmt Type Annual Annual Annual Annual Annual ¯ CASH FLOW DRIVERS Net Sales Growth Gross Margin (plus Depr) % Operating Expense (excl Depr) % Accounts Receivable Days Inventory Days on Hand (excl Depr) Accounts Payable Days (excl Depr) OTHER FACTORS Other Operating Assets Accrued Expenses Days Other Current Liabilities CASH FLOW DRIVERS ¯ ¯ ¯ ¯ ¯ 5.69 26.54 20.07 55.61 100.98 27.50 12.46 27.82 20.71 54.10 111.39 41.83 4.82 23.76 22.18 47.26 117.81 43.91 88 77 59 54.86 42.39 36.95 ¯ ¯ ¯ ¯ CASH MARGIN MANAGEMENT SUMMARY ¯ ¯ ¯ 119 33.02 ¯ 131 37.23 ¯ 26.23 18.60 50.45 96.65 32.50 ¯ GROSS PROFIT: BEGINNING GROSS PROFIT Gross Profit Management Gross Profit Growth ENDING GROSS PROFIT (PLUS DEPR) 0.58 24.99 20.39 61.88 107.93 40.62 ¯ ¯ 2,600 (124) 15 2,491 2,491 163 142 2,796 2,796 152 348 3,296 3,296 (504) 159 2,951 (1,843) (178) (11) (2,032) (2,032) 34 (116) (2,114) (2,114) (77) (263) (2,454) (2,454) (183) (118) (2,755) 459 682 ¯ ¯ ¯ ¯ TRADING ACCOUNT MANAGEMENT SUMMARY ¯ ¯ ¯ ¯ CASH IMPACT OF MANAGEMENT: Accounts Receivable (312) 181 Inventory (231) 147 Accounts Payable 166 (278) Total Management - Trading Acct (377) 50 Other Operating Assets 12 22 Accruals (69) (32) Other Current Liabilities Total Management - Other Factors (58) (9) TOTAL CASH IMPACT OF MGMT (435) 41 842 ¯ 196 ¯ OPERATING EXPENSES: BEGINNING OPERATING EXPENSE Operating Expense Management Operating Expense Growth ENDING OPER EXP (LESS DEPR) CASH OPERATING PROFIT CASH IMPACT OF GROWTH: Accounts Receivable Inventory Accounts Payable Total Growth - Trading Accounts Other Operating Assets Accruals Other Current Liabilities Total Growth - Other Factors TOTAL CASH IMPACT OF SALES GROWTH TOTAL TRADING ACCOUNT AND OTHER FACTOR CHG CASH AFTER OPERATIONS ¯ Moody’s KMV Sample Reports ¯ Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) ¯ ¯ 49 (244) 336 141 (53) (26) (79) 62 233 (166) 54 120 (6) 32 26 146 (8) (44) 15 (37) (1) 28 28 (96) (77) 29 (144) (4) 10 5 (200) (225) 61 (364) (7) 34 27 (85) (280) 105 (259) (6) 27 21 (9) (139) (337) (238) (444) (98) (275) (92) 15 ¯ 584 ¯ 567 ¯ 104 ¯ Page 17 Summary Balance Sheet – Actual MMAS Sample Customer (MMASSample) Summary Balance Sheet - Actual Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Unqualif'd Unqualif'd Accountant KPMG KPMG KPMG KPMG KPMG Analyst GJH GJH GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual Source Currency: USD United States Dollars ASSETS Cash & Equivalents Accts/Notes Rec-Trade (Net) Trade Inventory Operating Current Assets ¯ TOTAL CURRENT ASSETS Net Fixed Assets Investments Non-Op Non-Curr Assets ¯ TOTAL NON-CURRENT ASSETS ¯ TOTAL ASSETS ¯ LIABILITIES/NET WORTH S/T Loans Payable CPLTD-Bank Accounts Payable - Trade Other Accruals Taxes Payable ¯ TOTAL CURRENT LIABILITIES Long Term Debt ¯ TOTAL NON-CURRENT LIABILITIES ¯ TOTAL LIABILITIES Stock Retained Earnings ¯ TOTAL NET WORTH ¯ TOTAL LIABILITIES & NET WORTH ¯ Moody’s KMV Sample Reports Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Target Currency: USD United States Dollars 71 1,370 1,936 88 ¯ 3,465 121 1,690 2,211 77 ¯ 4,099 144 1,605 2,141 59 ¯ 3,949 90 1,756 2,610 119 ¯ 4,575 75 1,608 3,056 131 ¯ 4,870 665 12 42 ¯ 719 ¯ 4,184 ¯ 755 14 122 ¯ 891 ¯ 4,990 ¯ 603 18 66 ¯ 687 ¯ 4,636 ¯ 520 20 20 ¯ 560 ¯ 5,135 ¯ 1,320 22 22 ¯ 1,364 ¯ 6,234 ¯ 433 199 651 277 ¯ 1,560 1,200 226 832 236 ¯ 2,494 1,148 142 583 214 30 ¯ 2,117 1,134 115 980 222 ¯ 2,451 1,475 169 1,139 281 ¯ 3,064 907 ¯ 907 860 ¯ 860 630 ¯ 630 492 ¯ 492 1,347 ¯ 1,347 ¯ 2,467 ¯ 3,354 ¯ 2,747 ¯ 2,943 ¯ 4,411 17 1,700 ¯ 1,717 ¯ 4,184 ¯ 17 1,619 ¯ 1,636 ¯ 4,990 ¯ 17 1,872 ¯ 1,889 ¯ 4,636 ¯ 17 2,175 ¯ 2,192 ¯ 5,135 ¯ 17 1,806 ¯ 1,823 ¯ 6,234 ¯ Page 18 Summary Comprehensive Income Statement – Actual MMAS Sample Customer (MMASSample) Summary Comprehensive Income Statement - Actual Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Unqualif'd Unqualif'd Accountant KPMG KPMG KPMG KPMG KPMG Analyst GJH GJH GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual Source Currency: USD United States Dollars Target Currency: USD United States Dollars Sales/Revenues 9,911 9,968 10,535 11,848 12,419 Cost of Sales/Revenues Cost of Sales - Depreciation 7,311 155 ¯ 7,466 ¯ 2,445 7,477 209 ¯ 7,686 ¯ 2,282 7,739 239 ¯ 7,978 ¯ 2,557 8,552 224 ¯ 8,776 ¯ 3,072 9,468 273 ¯ 9,741 ¯ 2,678 1,843 19 ¯ 1,862 ¯ 583 2,032 15 ¯ 2,047 ¯ 235 2,114 13 ¯ 2,127 ¯ 430 2,454 17 ¯ 2,471 ¯ 601 2,755 21 ¯ 2,776 ¯ (98) PROFIT BEFORE TAXES (68) 14 42 ¯ (12) ¯ 571 (126) 46 2 ¯ (78) ¯ 157 (147) 47 ¯ (100) ¯ 330 (153) 32 13 ¯ (108) ¯ 493 (306) 35 ¯ (271) ¯ (369) Income Taxes NET PROFIT 122 449 31 126 77 253 144 349 (369) EBIT EBITDA EBIDA 639 813 691 283 507 476 477 729 652 646 887 743 (63) 231 231 ¯ 449 ¯ 126 ¯ 253 ¯ 349 ¯ (369) (27) (40) ¯ (207) ¯ ¯ (46) ¯ ¯ ¯ TOTAL COST OF SALES/REV ¯ GROSS PROFIT S,G, & A Expense Depreciation ¯ TOTAL OPERATING EXP(INC) ¯ NET OPERATING PROFIT Interest Income(Expense) Other Income(Expense) Gain(Loss) on Sale of Assets ¯ TOTAL OTHER INCOME(EXP) ¯ Other Comprehensive Income ¯ COMPREHENSIVE INCOME Cash Dividends & Withdrawals Adj to Retained Earnings ¯ Moody’s KMV Sample Reports Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Page 19 Summary Income Statement – % MMAS Sample Customer (MMASSample) Summary Income Statement - % Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 Months Covered 12 12 12 12 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Unqualif'd Accountant KPMG KPMG KPMG KPMG Analyst GJH GJH GJH GJH Stmt Type Annual Annual Annual Annual Source Currency: USD United States Dollars Sales/Revenues Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 6/30/2005 12 Unqualif'd KPMG GJH Annual Target Currency: USD United States Dollars 100.0 100.0 100.0 100.0 100.0 73.8 1.6 ¯ 75.3 ¯ 24.7 75.0 2.1 ¯ 77.1 ¯ 22.9 73.5 2.3 ¯ 75.7 ¯ 24.3 72.2 1.9 ¯ 74.1 ¯ 25.9 76.2 2.2 ¯ 78.4 ¯ 21.6 18.6 0.2 ¯ 18.8 ¯ 5.9 20.4 0.2 ¯ 20.5 ¯ 2.4 20.1 0.1 ¯ 20.2 ¯ 4.1 20.7 0.1 ¯ 20.9 ¯ 5.1 22.2 0.2 ¯ 22.4 ¯ (0.8) (0.7) 0.1 0.4 ¯ (0.1) ¯ 5.8 (1.3) 0.5 ¯ (0.8) ¯ 1.6 (1.4) 0.4 ¯ (0.9) ¯ 3.1 (1.3) 0.3 0.1 ¯ (0.9) ¯ 4.2 (2.5) 0.3 ¯ (2.2) ¯ (3.0) Income Taxes NET PROFIT 1.2 4.5 0.3 1.3 0.7 2.4 1.2 2.9 (3.0) EBIT EBITDA EBIDA 6.4 8.2 7.0 2.8 5.1 4.8 4.5 6.9 6.2 5.5 7.5 6.3 (0.5) 1.9 1.9 ¯ ¯ ¯ ¯ ¯ Cost of Sales/Revenues Cost of Sales - Depreciation ¯ TOTAL COST OF SALES/REV ¯ GROSS PROFIT S,G, & A Expense Depreciation ¯ TOTAL OPERATING EXP(INC) ¯ NET OPERATING PROFIT Interest Income(Expense) Other Income(Expense) Gain(Loss) on Sale of Assets ¯ TOTAL OTHER INCOME(EXP) ¯ PROFIT BEFORE TAXES ¯ Moody’s KMV Sample Reports Page 20 Summary Balance Sheet – Actual and % MMAS Sample Customer (MMASSample) Summary Balance Sheet - Actual and % Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 Months Covered 12 Audit Mthd Unqualif'd Accountant KPMG Analyst GJH Stmt Type Annual Source Currency: USD United States Dollars ASSETS Cash & Equivalents Accts/Notes Rec-Trade (Net) Trade Inventory Operating Current Assets ¯ TOTAL CURRENT ASSETS Net Fixed Assets Investments Non-Op Non-Curr Assets ¯ TOTAL NON-CURRENT ASSETS ¯ TOTAL ASSETS ¯ LIABILITIES/NET WORTH S/T Loans Payable CPLTD-Bank Accounts Payable - Trade Other Accruals Taxes Payable ¯ TOTAL CURRENT LIABILITIES Long Term Debt ¯ TOTAL NON-CURRENT LIABILITIES ¯ TOTAL LIABILITIES Stock Retained Earnings ¯ TOTAL NET WORTH ¯ TOTAL LIABILITIES & NET WORTH ¯ Moody’s KMV Sample Reports 6/30/2002 12 Unqualif'd KPMG GJH Annual 6/30/2003 12 Unqualif'd KPMG GJH Annual Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 6/30/2005 12 Unqualif'd KPMG GJH Annual 6/30/2004 12 Unqualif'd KPMG GJH Annual Target Currency: USD United States Dollars 71 1,370 1,936 88 ¯ 3,465 1.7 32.7 46.3 2.1 ¯ 82.8 121 1,690 2,211 77 ¯ 4,099 2.4 33.9 44.3 1.5 ¯ 82.1 144 1,605 2,141 59 ¯ 3,949 3.1 34.6 46.2 1.3 ¯ 85.2 90 1,756 2,610 119 ¯ 4,575 1.8 34.2 50.8 2.3 ¯ 89.1 75 1,608 3,056 131 ¯ 4,870 1.2 25.8 49.0 2.1 ¯ 78.1 665 12 42 ¯ 719 15.9 0.3 1.0 ¯ 17.2 755 14 122 ¯ 891 15.1 0.3 2.4 ¯ 17.9 603 18 66 ¯ 687 13.0 0.4 1.4 ¯ 14.8 520 20 20 ¯ 560 10.1 0.4 0.4 ¯ 10.9 1,320 22 22 ¯ 1,364 21.2 0.4 0.4 ¯ 21.9 ¯ 4,184 ¯ ¯ 100.0 ¯ ¯ 4,990 ¯ ¯ 100.0 ¯ ¯ 4,636 ¯ ¯ 100.0 ¯ ¯ 5,135 ¯ ¯ 100.0 ¯ ¯ 6,234 ¯ ¯ 100.0 ¯ 433 199 651 277 ¯ 1,560 10.3 4.8 15.6 6.6 ¯ 37.3 1,200 226 832 236 ¯ 2,494 24.0 4.5 16.7 4.7 ¯ 50.0 1,148 142 583 214 30 ¯ 2,117 24.8 3.1 12.6 4.6 0.6 ¯ 45.7 1,134 115 980 222 ¯ 2,451 22.1 2.2 19.1 4.3 ¯ 47.7 1,475 169 1,139 281 ¯ 3,064 23.7 2.7 18.3 4.5 ¯ 49.1 907 ¯ 907 21.7 ¯ 21.7 860 ¯ 860 17.2 ¯ 17.2 630 ¯ 630 13.6 ¯ 13.6 492 ¯ 492 9.6 ¯ 9.6 1,347 ¯ 1,347 21.6 ¯ 21.6 ¯ 2,467 ¯ 59.0 ¯ 3,354 ¯ 67.2 ¯ 2,747 ¯ 59.3 ¯ 2,943 ¯ 57.3 ¯ 4,411 ¯ 70.8 17 1,700 ¯ 1,717 ¯ 4,184 0.4 40.6 ¯ 41.0 ¯ 100.0 17 1,619 ¯ 1,636 ¯ 4,990 0.3 32.4 ¯ 32.8 ¯ 100.0 17 1,872 ¯ 1,889 ¯ 4,636 0.4 40.4 ¯ 40.7 ¯ 100.0 17 2,175 ¯ 2,192 ¯ 5,135 0.3 42.4 ¯ 42.7 ¯ 100.0 17 1,806 ¯ 1,823 ¯ 6,234 0.3 29.0 ¯ 29.2 ¯ 100.0 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Page 21 Summary Comprehensive Income Statement – Actual and % MMAS Sample Customer (MMASSample) Summary Comprehensive Income Statement - Actual and % Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 Months Covered 12 12 Audit Mthd Unqualif'd Unqualif'd Accountant KPMG KPMG Analyst GJH GJH Stmt Type Annual Annual Source Currency: USD United States Dollars Sales/Revenues 6/30/2003 12 Unqualif'd KPMG GJH Annual Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 6/30/2005 12 Unqualif'd KPMG GJH Annual 6/30/2004 12 Unqualif'd KPMG GJH Annual Target Currency: USD United States Dollars 9,911 100.0 9,968 100.0 10,535 100.0 11,848 100.0 12,419 100.0 7,311 155 73.8 1.6 7,477 209 75.0 2.1 7,739 239 73.5 2.3 8,552 224 72.2 1.9 9,468 273 76.2 2.2 ¯ ¯ 7,466 ¯ 75.3 ¯ 7,686 ¯ 77.1 ¯ 7,978 ¯ 75.7 ¯ 8,776 ¯ 74.1 ¯ 9,741 ¯ 78.4 ¯ ¯ 2,445 ¯ 24.7 ¯ 2,282 ¯ 22.9 ¯ 2,557 ¯ 24.3 ¯ 3,072 ¯ 25.9 ¯ 2,678 ¯ 21.6 1,843 19 ¯ 1,862 18.6 0.2 ¯ 18.8 2,032 15 ¯ 2,047 20.4 0.2 ¯ 20.5 2,114 13 ¯ 2,127 20.1 0.1 ¯ 20.2 2,454 17 ¯ 2,471 20.7 0.1 ¯ 20.9 2,755 21 ¯ 2,776 22.2 0.2 ¯ 22.4 ¯ 583 ¯ 5.9 ¯ 235 ¯ 2.4 ¯ 430 ¯ 4.1 ¯ 601 ¯ 5.1 ¯ (98) ¯ (0.8) (68) 14 42 (0.7) 0.1 0.4 (126) 46 2 (1.3) 0.5 - (147) 47 - (1.4) 0.4 - (153) 32 13 (1.3) 0.3 0.1 (306) 35 - (2.5) 0.3 - ¯ ¯ (12) ¯ (0.1) ¯ (78) ¯ (0.8) ¯ (100) ¯ (0.9) ¯ (108) ¯ (0.9) ¯ (271) ¯ (2.2) ¯ PROFIT BEFORE TAXES ¯ 571 ¯ 5.8 ¯ 157 ¯ 1.6 ¯ 330 ¯ 3.1 ¯ 493 ¯ 4.2 ¯ (369) ¯ (3.0) Income Taxes NET PROFIT 122 449 1.2 4.5 31 126 0.3 1.3 77 253 0.7 2.4 144 349 1.2 2.9 (369) (3.0) EBIT EBITDA EBIDA 639 813 691 6.4 8.2 7.0 283 507 476 2.8 5.1 4.8 477 729 652 4.5 6.9 6.2 646 887 743 5.5 7.5 6.3 (63) 231 231 (0.5) 1.9 1.9 - - - - - - - - - - ¯ 449 ¯ 4.5 ¯ 126 ¯ 1.3 ¯ 253 ¯ 2.4 ¯ 349 ¯ 2.9 ¯ (369) ¯ (3.0) Cost of Sales/Revenues Cost of Sales Depreciation TOTAL COST OF SALES/REV GROSS PROFIT S,G, & A Expense Depreciation ¯ TOTAL OPERATING EXP(INC) ¯ NET OPERATING PROFIT Interest Income(Expense) Other Income(Expense) Gain(Loss) on Sale of Assets TOTAL OTHER INCOME(EXP) Other Comprehensive Income ¯ COMPREHENSIVE INCOME Cash Dividends & Withdrawals Adj to Retained Earnings (27) ¯ Moody’s KMV Sample Reports (40) ¯ (207) ¯ ¯ - ¯ ¯ (46) ¯ ¯ - ¯ ¯ ¯ Page 22 Summary Reconciliations MMAS Sample Customer (MMASSample) Summary Reconciliations Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Analyst GJH GJH GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual Reconciliation of Retained Earnings ¯ ¯ ¯ ¯ BEGINNING RETAINED EARNINGS, AS PREVIOUSLY REPORTED 1,700 1,619 ¯ ¯ ¯ BEG RET. EARNINGS, RESTATED 1,700 1,619 Net Profit 126 253 Div and Withdrawals-Cash (207) ENDING RETAINED EARNINGS 1,619 1,872 ¯ ¯ ¯ ¯ Reconciliation of Net Worth ¯ ¯ ¯ ¯ BEGINNING NET WORTH 1,717 1,636 Net Profit 126 253 Div and Withdrawals-Cash (207) ACTUAL ENDING NET WORTH 1,636 1,889 INCR(DECR) IN NET WORTH (81) 253 ¯ ¯ ¯ ¯ Reconciliation of Working Captial ¯ ¯ ¯ ¯ BEGINNING WORKING CAPITAL 1,905 1,605 Decrease(Increase) in Non-Current Assets: Total Fixed Assets-Net (90) 152 Investments (2) (4) Non-Op Non-Curr Assets (80) 56 Increase(Decrease) in Non-Current Liabilities: Long Term Debt (47) (230) Increase(Decrease) in Net Worth (81) 253 ENDING WORKING CAPITAL 1,605 1,832 ¯ ¯ ¯ ¯ Moody’s KMV Sample Reports ¯ Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) ¯ 1,872 ¯ 1,872 349 (46) 2,175 ¯ 2,175 ¯ 2,175 (369) 1,806 ¯ ¯ 1,889 349 (46) 2,192 303 ¯ ¯ 2,192 (369) 1,823 (369) ¯ ¯ 1,832 ¯ 2,124 83 (2) 46 (800) (2) (2) (138) 303 2,124 ¯ 855 (369) 1,806 ¯ Page 23 Summary UCA Cash Flow MMAS Sample Customer (MMASSample) Summary UCA Cash Flow Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Analyst GJH GJH GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual Net Sales Chg in Accts/Notes Rec-Trade(Net) ¯ Cash Collected From Sales Cost of Sales/Revenues Chg in Inventories Chg in Accts Payable-Trade ¯ Cash Paid To Suppliers ¯ CASH FROM TRADING ACTIVITIES S,G&A Expense(Less Non-Cash Exp) Chg in Prepaids/Deferreds Chg in Accruals & Other Pay ¯ Cash Paid for Operating Costs ¯ CASH AFTER OPERATIONS Other Income (Expense) Taxes - Paid in Cash ¯ Other Income (Expense) & Taxes Paid ¯ NET CASH AFTER OPERATIONS Interest Expense Dividends - Paid in Cash ¯ Cash Paid for Dividends & Interest ¯ NET CASH INCOME Current Portion Long Term Debt ¯ CASH AFTER DEBT AMORTIZATION Chg in Net Fixed Assets Chg in Investments ¯ Cash Paid for Plant and Investments ¯ FINANCING SURPLUS (REQMNTS) Chg in ST Loans/Other Payables Chg in LT & Sub Debt ¯ Total External Financing ¯ CASH AFTER FINANCING Add:Beginning Cash & Equivalents ¯ ENDING CASH & EQUIVALENTS ¯ Moody’s KMV Sample Reports ¯ 9,968 (320) ¯ 9,648 (7,477) (275) 181 ¯ (7,571) ¯ 2,077 (2,032) 11 (41) ¯ (2,062) ¯ 15 46 (31) ¯ 15 ¯ 30 10,535 85 ¯ 10,620 (7,739) 70 (249) ¯ (7,918) ¯ 2,702 (2,114) 18 (22) ¯ (2,118) ¯ 584 47 (47) ¯ ¯ 584 11,848 (151) ¯ 11,697 (8,552) (469) 397 ¯ (8,624) ¯ 3,073 (2,454) (60) 8 ¯ (2,506) ¯ 567 32 (174) ¯ (142) ¯ 425 12,419 148 ¯ 12,567 (9,468) (446) 159 ¯ (9,755) ¯ 2,812 (2,755) (12) 59 ¯ (2,708) ¯ 104 35 ¯ 35 ¯ 139 (126) (207) ¯ (333) ¯ (303) (199) ¯ (502) (312) (82) ¯ (394) ¯ (896) 767 179 ¯ 946 ¯ 50 71 ¯ 121 ¯ (147) ¯ (147) ¯ 437 (226) ¯ 211 (100) 52 ¯ (48) ¯ 163 (52) (88) ¯ (140) ¯ 23 121 ¯ 144 ¯ (153) (46) ¯ (199) ¯ 226 (142) ¯ 84 (145) 44 ¯ (101) ¯ (17) (14) (23) ¯ (37) ¯ (54) 144 ¯ 90 ¯ (306) ¯ (306) ¯ (167) (115) ¯ (282) (1,094) (4) ¯ (1,098) ¯ (1,380) 341 1,024 ¯ 1,365 ¯ (15) 90 ¯ 75 ¯ Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Page 24 Summary FAS 95 Stmt of Cash Flows (Indirect) MMAS Sample Customer (MMASSample) Summary FAS 95 Stmt of Cash Flows (Indirect) Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 Months Covered 12 12 12 Analyst GJH GJH GJH Stmt Type Annual Annual Annual CASH FLOWS FROM OPERATING ACTIVITIES: Net Income Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 6/30/2004 6/30/2005 12 12 GJH GJH Annual Annual 126 253 349 (369) NET CASH PROV BY OPERATIONS 224 (2) (320) (275) 11 181 (41) ¯ (222) ¯ (96) 252 85 70 18 (249) (22) 30 ¯ 184 ¯ 437 241 (13) (151) (469) (60) 397 8 (30) ¯ (77) ¯ 272 294 148 (446) (12) 159 59 ¯ 202 ¯ (167) CASH FLOWS FROM INVESTING ACTIVITIES: Chg in Net Fixed Assets Chg in Long Term Investments ¯ NET CASH USED IN INVESTING (312) (82) ¯ (394) (100) 52 ¯ (48) (145) 44 ¯ (101) (1,094) (4) ¯ (1,098) CASH FLOWS FROM FINANCING ACTIVITIES: Chg in ST Loans Chg in CP-Long Term Debt Chg in Long Term Debt ¯ Net Chg in Borrowings Cash Dividends Paid ¯ NET CASH PROV BY FINANCING ¯ CHANGE IN CASH & EQUIVALENTS 767 27 (47) ¯ 747 (207) ¯ 540 ¯ 50 (52) (84) (230) ¯ (366) ¯ (366) ¯ 23 (14) (27) (138) ¯ (179) (46) ¯ (225) ¯ (54) 341 54 855 ¯ 1,250 ¯ 1,250 ¯ (15) 71 ¯ 121 ¯ 121 ¯ 144 ¯ 144 ¯ 90 ¯ 90 ¯ 75 ¯ Reconciling Items Deprec & Amort Non-Operating Income Chg in Net Receivables Chg in Inventories Chg in Prepaids/Deferreds Chg in Accts Payable-Trade & Othr Chg in Accruals Chg in Taxes ¯ Total Adjustments ¯ ADD:CASH AND EQUIVALENTS AT BOP ¯ CASH AND EQUIVALENTS AT EOP ¯ Moody’s KMV Sample Reports ¯ Page 25 Summary Ratios MMAS Sample Customer (MMASSample) Summary Ratios Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Analyst GJH GJH GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual LIQUIDITY Working Capital Quick Ratio Current Ratio Net Sales/Working Capital 1,905 0.92 2.22 5.20 1,605 0.73 1.64 6.21 1,832 0.83 1.87 5.75 2,124 0.75 1.87 5.58 1,806 0.55 1.59 6.88 LEVERAGE Net Worth-Actual Tang Net Worth-Actual Eff Tang Net Worth-Actual Debt/Worth Debt/Tang Worth Debt Less Sub Debt-Liability/Eff Tg Wth Borrowed Funds/Eff Tg Worth LT Debt/Net Fixed Assets Total Liabilities/Total Assets 1,717 1,717 1,717 1.44 1.44 1.44 0.90 1.66 0.59 1,636 1,636 1,636 2.05 2.05 2.05 1.40 1.44 0.67 1,889 1,889 1,889 1.45 1.45 1.45 1.02 1.28 0.59 2,192 2,192 2,192 1.34 1.34 1.34 0.79 1.17 0.57 1,823 1,823 1,823 2.42 2.42 2.42 1.64 1.15 0.71 9.40 2.99 813 691 2.25 0.63 0.05 0.06 1.44 1.56 507 476 3.24 3.56 2.02 1.57 2.52 1.95 729 652 4.22 4.73 1.35 1.25 3.31 3.01 887 743 (0.21) (0.44) 0.29 0.33 0.49 0.55 231 231 PROFITABILITY (%) Return on Assets Return on Equity Gross Margin Net Margin 10.73 26.15 24.67 4.53 2.53 7.70 22.89 1.26 5.46 13.39 24.27 2.40 6.80 15.92 25.93 2.95 (5.92) (20.24) 21.56 (2.97) ACTIVITY Net Accounts Receivable Days Inventory Days on Hand Accounts Payable Days Net Sales/Total Assets Net Sales/Net Worth Net Sales/Net Fixed Assets Profit Before Taxes/Total Assets (%) 50.45 94.65 31.83 2.37 5.77 14.90 13.65 61.88 105.00 39.51 2.00 6.09 13.20 3.15 55.61 97.95 26.67 2.27 5.58 17.47 7.12 54.10 108.55 40.76 2.31 5.41 22.78 9.60 47.26 114.51 42.68 1.99 6.81 9.41 (5.92) 19.26 35.95 (4.72) 0.58 (59.69) (71.94) (7.09) (18.10) 15.46 5.69 82.98 100.79 10.76 7.14 16.04 12.46 39.77 37.94 21.40 49.88 (16.83) 4.82 N/A N/A ¯ ¯ ¯ ¯ COVERAGE Interest Coverage Net Income+Depr+Amort-Divs/CPLTD UCA Cash Flow Coverage UCA Cash Flow/CPLTD pp EBITDA/Interest Exp+CPLTD EBITDA/Interest Exp+CPLTD pp EBITDA EBIDA 3.04 GROWTH (%) Total Assets Growth Total Liabilities Growth Net Worth Growth Net Sales Growth Operating Profit Growth Net Profit Growth ¯ Moody’s KMV Sample Reports ¯ Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Page 26 Summary Cash Flow Management MMAS Sample Customer (MMASSample) Summary Cash Flow Management Industry Classification: NAICS Code: 315228 Statement Date Months Covered Analyst Stmt Type Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 12 12 12 12 12 GJH GJH GJH GJH GJH Annual Annual Annual Annual Annual UCA CASH AFTER OPERATIONS Net Sales Chg in Accts/Notes Rec-Trade(Net) ¯ Cash Collected From Sales Cost of Sales/Revenues Chg in Inventories Chg in Accts Payable-Trade ¯ Cash Paid To Suppliers ¯ CASH FROM TRADING ACTIVITIES S,G&A Expense(Less Non-Cash Exp) Chg in Prepaids/Deferreds Chg in Accruals & Other Pay ¯ Cash Paid for Operating Costs ¯ CASH AFTER OPERATIONS ¯ ¯ 9,968 (320) ¯ 9,648 10,535 85 ¯ 10,620 11,848 (151) ¯ 11,697 12,419 148 ¯ 12,567 (7,477) (275) 181 ¯ (7,571) ¯ 2,077 (7,739) 70 (249) ¯ (7,918) ¯ 2,702 (8,552) (469) 397 ¯ (8,624) ¯ 3,073 (9,468) (446) 159 ¯ (9,755) ¯ 2,812 (2,032) 11 (41) ¯ (2,062) ¯ 15 ¯ (2,114) 18 (22) ¯ (2,118) ¯ 584 ¯ (2,454) (60) 8 ¯ (2,506) ¯ 567 ¯ (2,755) (12) 59 ¯ (2,708) ¯ 104 ¯ 0.58 (9) 5.69 (139) 12.46 (337) 4.82 (238) CASH IMPACT ANALYSIS Net Sales Growth (%) Total Cash Impact of Growth Gross Margin (plus Depr) % Cash Impact of Gross Margin Mgmt 26.23 24.99 (124) 26.54 163 27.82 152 23.76 (504) Operating Expense (excl Depr) % Cash Impact of Oper Exp Mgmt 18.60 20.39 (178) 20.07 34 20.71 (77) 22.18 (183) Accounts Receivable Days Cash Impact of Accts Rec Days Mgmt 50.45 61.88 (312) 55.61 181 54.10 49 47.26 233 Inventory Days on Hand (excl Depr) Cash Impact of Inv Days Mgmt 96.65 107.93 (231) 100.98 147 111.39 (244) 117.81 (166) Accounts Payable Days (excl Depr) Cash Impact of A/P Days Mgmt 32.50 40.62 166 27.50 (278) 41.83 336 43.91 54 88 77 12 59 22 119 (53) 131 (6) 54.86 42.39 (69) 36.95 (32) 33.02 (26) 37.23 32 - ¯ ¯ ¯ ¯ Other Operating Assets Cash Impact of Other Op Assets Mgmt Accrued Expenses Days Cash Impact of Accruals Mgmt Other Current Liabilities Cash Impact of Other Current Liabilities Mgmt ¯ Moody’s KMV Sample Reports ¯ Page 27 Executive Financial Statement – Actual and % MMAS Sample Customer (MMASSample) Executive Financial Statement - Actual and % Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 Months Covered 12 Audit Mthd Unqualif'd Accountant KPMG Analyst GJH Stmt Type Annual Source Currency: USD United States Dollars ASSETS Cash & Near Cash Accts/Notes Rec (Net) Inventory Other Current Assets 6/30/2002 12 Unqualif'd KPMG GJH Annual 6/30/2003 12 Unqualif'd KPMG GJH Annual 6/30/2004 12 Unqualif'd KPMG GJH Annual Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 6/30/2005 12 Unqualif'd KPMG GJH Annual Target Currency: USD United States Dollars 71 1,370 1,936 88 ¯ 3,465 1.7 32.7 46.3 2.1 ¯ 82.8 121 1,690 2,211 77 ¯ 4,099 2.4 33.9 44.3 1.5 ¯ 82.1 144 1,605 2,141 59 ¯ 3,949 3.1 34.6 46.2 1.3 ¯ 85.2 90 1,756 2,610 119 ¯ 4,575 1.8 34.2 50.8 2.3 ¯ 89.1 75 1,608 3,056 131 ¯ 4,870 1.2 25.8 49.0 2.1 ¯ 78.1 665 12 42 ¯ 719 ¯ 4,184 ¯ 15.9 0.3 1.0 ¯ 17.2 ¯ 100.0 ¯ 755 14 122 ¯ 891 ¯ 4,990 ¯ 15.1 0.3 2.4 ¯ 17.9 ¯ 100.0 ¯ 603 18 66 ¯ 687 ¯ 4,636 ¯ 13.0 0.4 1.4 ¯ 14.8 ¯ 100.0 ¯ 520 20 20 ¯ 560 ¯ 5,135 ¯ 10.1 0.4 0.4 ¯ 10.9 ¯ 100.0 ¯ 1,320 22 22 ¯ 1,364 ¯ 6,234 ¯ 21.2 0.4 0.4 ¯ 21.9 ¯ 100.0 ¯ 433 199 651 277 ¯ 1,560 10.3 4.8 15.6 6.6 ¯ 37.3 1,200 226 832 236 ¯ 2,494 24.0 4.5 16.7 4.7 ¯ 50.0 1,148 142 583 214 30 ¯ 2,117 24.8 3.1 12.6 4.6 0.6 ¯ 45.7 1,134 115 980 222 ¯ 2,451 22.1 2.2 19.1 4.3 ¯ 47.7 1,475 169 1,139 281 ¯ 3,064 23.7 2.7 18.3 4.5 ¯ 49.1 907 ¯ 907 21.7 ¯ 21.7 860 ¯ 860 17.2 ¯ 17.2 630 ¯ 630 13.6 ¯ 13.6 492 ¯ 492 9.6 ¯ 9.6 1,347 ¯ 1,347 21.6 ¯ 21.6 ¯ TOTAL LIABILITIES ¯ 2,467 ¯ 59.0 ¯ 3,354 ¯ 67.2 ¯ 2,747 ¯ 59.3 ¯ 2,943 ¯ 57.3 ¯ 4,411 ¯ 70.8 TOTAL NET WORTH TOTAL LIABILITIES & NET WORTH 1,717 4,184 41.0 100.0 1,636 4,990 32.8 100.0 1,889 4,636 40.7 100.0 2,192 5,135 42.7 100.0 1,823 6,234 29.2 100.0 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 9,911 7,311 155 100.0 73.8 1.6 9,968 7,477 209 100.0 75.0 2.1 10,535 7,739 239 100.0 73.5 2.3 11,848 8,552 224 100.0 72.2 1.9 12,419 9,468 273 100.0 76.2 2.2 ¯ TOTAL CURRENT ASSETS Net Fixed Assets LT Receivables & Investments Other Non-Current Assets ¯ TOTAL NON-CURRENT ASSETS ¯ TOTAL ASSETS ¯ LIABILITIES/NET WORTH S/T Loans Payable Current Portion - LTD Accounts Payable Accrued Liabilities Taxes Payable ¯ TOTAL CURRENT LIABILITIES Long Term Debt ¯ TOTAL NON-CURRENT LIABILITIES INCOME STATEMENT Net Sales/Revenues Cost of Sales/Revenues Cost of Sales - Depreciation ¯ GROSS PROFIT Net Operating Expenses Depr & Amort ¯ NET OPERATING PROFIT Interest Income(Expense) Other Income(Expense) ¯ PROFIT BEFORE TAXES Income Taxes ¯ PROFIT BEFORE EXTRAORDINARY ITEMS ¯ NET PROFIT ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 2,445 1,843 19 24.7 18.6 0.2 2,282 2,032 15 22.9 20.4 0.2 2,557 2,114 13 24.3 20.1 0.1 3,072 2,454 17 25.9 20.7 0.1 2,678 2,755 21 21.6 22.2 0.2 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 583 (68) 56 5.9 (0.7) 0.6 235 (126) 48 2.4 (1.3) 0.5 430 (147) 47 4.1 (1.4) 0.4 601 (153) 45 5.1 (1.3) 0.4 (98) (306) 35 (0.8) (2.5) 0.3 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 571 122 5.8 1.2 157 31 1.6 0.3 330 77 3.1 0.7 493 144 4.2 1.2 (369) - (3.0) - ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 449 4.5 126 1.3 253 2.4 349 2.9 (369) (3.0) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 449 4.5 126 1.3 253 2.4 349 2.9 (369) (3.0) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ COMPREHENSIVE INCOME 449 4.5 126 1.3 253 2.4 349 2.9 (369) (3.0) Cash Dividends & Withdrawals Adj to Retained Earnings ¯¯ (27) (40) Moody’s KMV Sample Reports (207) - - (46) - - Page 28 Executive Reconciliations & Ratios MMAS Sample Customer (MMASSample) Executive Reconciliations & Ratios Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Analyst GJH GJH GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual Reconciliation of Working Captial ¯ ¯ ¯ BEGINNING WORKING CAPITAL 1,905 Chg in Total Fixed Assets-Net (90) Chg in Long Term Rec & Invest (2) Chg in Other LT Assets (80) Chg in Long Term Debt (47) Chg in Net Worth (81) ENDING WORKING CAPITAL 1,605 ¯ ¯ ¯ UCA Cash Flow ¯ ¯ ¯ Cash Collected From Sales 9,648 Cash Paid To Suppliers (7,571) CASH FROM TRADING ACTIVITIES 2,077 Cash Paid for Operating Costs (2,062) CASH AFTER OPERATIONS 15 Other Cash Expenses 46 Taxes - Paid in Cash (31) NET CASH AFTER OPERATIONS 30 Interest - Paid in Cash (126) Dividends - Paid in Cash (207) NET CASH INCOME (303) Current Portion Long Term Debt (199) CASH AFTER DEBT AMORTIZATION (502) Chg in Net Fixed Assets (312) Chg in Investments & Intangibles (82) Extraordinary and Non-Cash Items FINANCING SURPLUS (REQMNTS) (896) Total External Financing 946 CASH AFTER FINANCING 50 Add:Beginning Cash & Equivalents 71 ENDING CASH & EQUIVALENTS 121 ¯ ¯ ¯ Ratios ¯ ¯ ¯ Working Capital 1,905 1,605 Quick Ratio 0.92 0.73 Current Ratio 2.22 1.64 Debt/Worth 1.44 2.05 Debt/Tang Worth 1.44 2.05 Net Income+Depr+Amort-Divs/CPLTD 2.99 0.63 Return on Assets (%) 10.73 2.53 Return on Equity (%) 26.15 7.70 Net Accounts Receivable Days 50.45 61.88 Inventory Days on Hand 94.65 105.00 Accounts Payable Days 31.83 39.51 Total Assets Growth (%) 19.26 Total Liabilities Growth (%) 35.95 Net Worth Growth (%) (4.72) Net Sales Growth (%) 0.58 Net Profit Growth (%) (71.94) ¯ ¯ ¯ Moody’s KMV Sample Reports ¯ 1,605 152 (4) 56 (230) 253 1,832 ¯ ¯ 1,832 83 (2) 46 (138) 303 2,124 ¯ ¯ 2,124 (800) (2) (2) 855 (369) 1,806 ¯ ¯ 10,620 (7,918) 2,702 (2,118) 584 47 (47) 584 (147) 437 (226) 211 (100) 52 163 (140) 23 121 144 ¯ ¯ 11,697 (8,624) 3,073 (2,506) 567 32 (174) 425 (153) (46) 226 (142) 84 (145) 44 (17) (37) (54) 144 90 ¯ ¯ 12,567 (9,755) 2,812 (2,708) 104 35 139 (306) (167) (115) (282) (1,094) (4) (1,380) 1,365 (15) 90 75 ¯ ¯ 1,832 0.83 1.87 1.45 1.45 3.56 5.46 13.39 55.61 97.95 26.67 (7.09) (18.10) 15.46 5.69 100.79 ¯ ¯ 2,124 0.75 1.87 1.34 1.34 4.73 6.80 15.92 54.10 108.55 40.76 10.76 7.14 16.04 12.46 37.94 ¯ ¯ 1,806 0.55 1.59 2.42 2.42 (0.44) (5.92) (20.24) 47.26 114.51 42.68 21.40 49.88 (16.83) 4.82 N/A ¯ Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Page 29 Executive FAS 95 Stmt of Cash Flows (Indirect) MMAS Sample Customer (MMASSample) Executive FAS 95 Stmt of Cash Flows (Indirect) Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Analyst GJH GJH GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual CASH FLOWS FROM OPERATING ACTIVITIES: Net Income 126 253 349 (369) NET CASH PROV BY OPERATIONS 224 (2) (320) (275) 11 181 (41) ¯ (222) ¯ (96) 252 85 70 18 (249) (22) 30 ¯ 184 ¯ 437 241 (13) (151) (469) (60) 397 8 (30) ¯ (77) ¯ 272 294 148 (446) (12) 159 59 ¯ 202 ¯ (167) CASH FLOWS FROM INVESTING ACTIVITIES: Chg in Net Fixed Assets Chg in Investments ¯ NET CASH USED IN INVESTING (312) (82) ¯ (394) (100) 52 ¯ (48) (145) 44 ¯ (101) (1,094) (4) ¯ (1,098) CASH FLOWS FROM FINANCING ACTIVITIES: Chg in Short Term Liabilities Chg in Long Term Debt ¯ Net Chg in Borrowings Deferred Interest Expense Chg in Other ST and LT Liabilities Cash Dividends Paid Chg in Capital(Less Non-Cash) ¯ NET CASH PROV BY FINANCING Chg in Currency Translation ¯ CHANGE IN CASH & EQUIVALENTS 794 (47) ¯ 747 (207) ¯ 540 ¯ 50 (136) (230) ¯ (366) ¯ (366) ¯ 23 (41) (138) ¯ (179) (46) ¯ (225) ¯ (54) 395 855 ¯ 1,250 ¯ 1,250 ¯ (15) 71 ¯ 121 ¯ 121 ¯ 144 ¯ 144 ¯ 90 ¯ 90 ¯ 75 ¯ Reconciling Items Non-Cash Items Non-Operating Income Chg in Net Receivables Chg in Deferred Revenue Chg in Inventories Chg in Prepaids/Deferreds Chg in Accounts Rec-Related Co Chg in Accts Payable-Trade & Othr Chg in Overdrafts Chg in Accruals Chg in Taxes Chg in Oper Assets and Liabilities ¯ Total Adjustments ¯ ADD:CASH AND EQUIVALENTS AT BOP ¯ CASH AND EQUIVALENTS AT EOP ¯ Moody’s KMV Sample Reports ¯ Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Page 30 Asset Based Lending Report MMAS Sample Customer (MMASSample) Asset Based Lending Report Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Analyst GJH GJH GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual ACCOUNTS RECEIVABLE Total Accounts Receivable (AR) AR Base before Cap & Sr Liens NET AR BORROWING BASE 1,370 ¯ - 1,690 ¯ - 1,605 ¯ - 1,756 ¯ - 1,608 ¯ - INVENTORY Finished Goods NET INVENTORY BORROWING BASE 1,936 - 2,211 - 2,141 - 2,610 - 3,056 - - - - - - 3,306 3,306 ¯ - 3,901 3,901 ¯ - 3,746 3,746 ¯ - 4,366 4,366 ¯ - 4,664 4,664 ¯ - ¯ ¯ ¯ ¯ ¯ ¯ ORDERS Orders Base Before Cap NET ORDERS BORROWING BASE BORROWING BASE SUMMARY Total Assets in Borrowing Base Eligible Assets ¯ TOTAL BORROWING BASE ¯ Moody’s KMV Sample Reports Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Page 31 Balance Sheet Account Assumptions MMAS Sample Customer (MMASSample) Balance Sheet Account Assumptions Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Stmt Type Annual Annual Annual Annual Annual ¯ CURRENT LIABILITIES Note Payable - Bank Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales ¯ ¯ ¯ ¯ ¯ 433 1,200 767 177.14 12.04 1,148 (52) (4.33) 10.90 1,134 (14) (1.22) 9.57 1,475 341 30.07 11.88 226 27 13.57 2.27 26.28 142 (84) (37.17) 1.35 22.54 115 (27) (19.01) 0.97 23.37 169 54 46.96 1.36 12.55 832 181 27.80 8.35 39.51 583 (249) (29.93) 5.53 26.67 980 397 68.10 8.27 40.76 1,139 159 16.22 9.17 42.68 236 (41) (14.80) 2.37 214 (22) (9.32) 2.03 222 8 3.74 1.87 281 59 26.58 2.26 - N/A - 30 30 N/A 0.28 9.09 (30) (100.00) - N/A - ¯ ¯ ¯ ¯ ¯ 907 9.15 860 (47) (5.18) 8.63 630 (230) (26.74) 5.98 492 (138) (21.90) 4.15 1,347 855 173.78 10.85 ¯ ¯ ¯ ¯ ¯ 17 0.17 17 0.17 17 0.16 17 0.14 17 0.14 ¯ ¯ ¯ ¯ ¯ 4.37 CPLTD-Bank Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales % of Long Term Debt Accounts 199 2.01 21.94 Accounts Payable-Trade Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales Days On Hand 651 6.57 31.83 Accrued Expenses Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales 277 2.79 Income Taxes Payable Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales % of Profit Before Taxes - ¯ NON-CURRENT LIABILITIES Long Term Debt Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales ¯ EQUITY Common Stock Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales ¯ Moody’s KMV Sample Reports Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Page 32 Income Statement Account Assumptions MMAS Sample Customer (MMASSample) Income Statement Account Assumptions Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Stmt Type Annual Annual Annual Annual Annual INCOME STATEMENT Net Sales - Manufacturing Division Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period 9,785 9,523 9,477 9,564 9,317 (262) (2.68) (46) (0.48) 87 0.92 (247) (2.58) Net Sales - Catalog Division Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period 126 445 319 253.17 1,058 613 137.75 2,284 1,226 115.88 3,102 818 35.81 Cost of Goods Sold Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales 7,311 73.77 7,477 166 2.27 75.01 7,739 262 3.50 73.46 8,552 813 10.51 72.18 9,468 916 10.71 76.24 Cost of Goods Sold Depreciation Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales 155 209 239 224 273 1.56 54 34.84 2.10 30 14.35 2.27 (15) (6.28) 1.89 49 21.88 2.20 2,032 189 10.26 20.39 2,114 82 4.04 20.07 2,454 340 16.08 20.71 2,755 301 12.27 22.18 15 (4) (21.05) 0.15 0.69 13 (2) (13.33) 0.12 0.57 17 4 30.77 0.14 0.70 21 4 23.53 0.17 0.60 126 58 85.29 1.26 147 21 16.67 1.40 153 6 4.08 1.29 306 153 100.00 2.46 46 32 228.57 0.46 47 1 2.17 0.45 32 (15) (31.91) 0.27 35 3 9.38 0.28 2 (40) (95.24) 0.02 (2) N/A - 13 13 N/A 0.11 (13) N/A - 31 (91) (74.59) 0.31 19.75 77 46 148.39 0.73 23.33 144 67 87.01 1.22 29.21 (144) (100.00) - 207 180 666.67 164.29 (207) (100.00) - 46 46 N/A 13.18 (46) (100.00) - (40) 40 N/A N/A N/A N/A ¯ ¯ ¯ ¯ ¯ SG & A Expense Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales 1,843 Depreciation Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales % of Gross Fixed Assets 19 Interest Expense (-) Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales Other Income Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales Gain(Loss) on Asset Sale Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales Current Income Tax Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales % of Profit Before Taxes Dividends - Common Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Profit Adj to Retained Earnings Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period ¯ Moody’s KMV Sample Reports 18.60 0.19 1.04 68 0.69 14 0.14 42 0.42 122 1.23 21.37 27 6.01 Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Page 33 Quick Projection Variables MMAS Sample Customer (MMASSample) Quick Projection Variables Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 Months Covered 12 12 12 12 12 Stmt Type Annual Annual Annual Annual Annual Annual Sales Growth (%) 0.58 5.69 12.46 4.82 Gross Margin (plus Depr) (%) 26.23 24.99 26.54 27.82 23.76 Operating Expense (excl Depr) (%) 18.60 20.39 20.07 20.71 22.18 Net Accounts Receivable Days 50.45 61.88 55.61 54.10 47.26 Inventory Days on Hand (excl Depr) 96.65 107.93 100.98 111.39 117.81 Accounts Payable Days (excl Depr) 32.50 40.62 27.50 41.83 43.91 0.78 1.27 1.46 0.82 0.61 341 111 154 1,093 19.26 (7.09) 10.76 21.40 0.58 5.69 12.46 4.82 Depreciation Rate (%) 11.22 11.34 10.23 9.87 Depreciation Rate to Accumulated (%) 11.22 11.34 10.23 9.87 21.37 19.75 23.33 29.21 - 6.01 164.29 - 13.18 - 6.59 6.99 8.36 12.93 ¯ ¯ ¯ ¯ Cash/(SG&A + COGS) (%) Capital Spending Misc Balance Sheet Growth Rate Misc Income Statement Growth Rate Effective Tax Rate (%) Dividend Payout Rate (%) Interest Expense Rate (%) Interest Income Rate (%) ¯ Moody’s KMV Sample Reports ¯ Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Page 34 FINANCIAL PACKAGE REPORTS PEER COMPARISON REPORTS Peer Comparison Reports are used to compare the borrower’s financial statement data to the Risk Management Association’s (RMA) Annual Statement Studies Database. RMA provides common-sized Balance Sheet and Income Statement values, and quartiled ratios for comparison. In addition to the sample Peer Comparison Reports shown in this document, the following reports are also available: 1. Peer Comparison – Detailed Income Statement – Actual 2. Peer Comparison – Detailed Balance Sheet – % 3. Peer Comparison – Detailed Balance Sheet – Actual and % 4. Peer Comparison – Summary Income Statement – Actual 5. Peer Comparison – Summary Balance Sheet – % 6. Peer Comparison – Summary Balance Sheet – Actual and % 7. Peer Comparison – Executive Financial Statement – Actual and % Moody’s KMV Sample Reports Page 35 Peer Comparison – Detailed Balance Sheet – Actual MMAS Sample Customer (MMASSample) Prepared: 17:58, 9/22/2005 Detailed Balance Sheet - Actual Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 3/31/2004 6/30/2005 Months Covered 12 12 12 12 12 12 0 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Unqualif'd Unqualif'd 315228 Variance Accountant KPMG KPMG KPMG KPMG KPMG Peer Peer Analyst GJH GJH GJH GJH GJH 6/30/2005 Stmt Type Annual Annual Annual Annual Annual Source Currency: USD United States Dollars CURRENT ASSETS Cash Accts/Notes Rec-Trade Bad Debt Reserve (-) Target Currency: USD United States Dollars 71 1,424 54 ¯ Total Accts/Rec-Net Raw Materials Inventory ¯ Total Inventory Prepaid Expenses Operating Current Assets ¯ TOTAL CURRENT ASSETS ¯ NON-CURRENT ASSETS Land Property Plant & Equipment Furniture, Fixtures & Vehicles ¯ Gross Fixed Assets Accumulated Deprec (-) ¯ Total Fixed Assets - Net Cash Value Life Insurance Operating Non-Cur Assets Other Assets Intangibles - Goodwill ¯ TOTAL NON-CURRENT ASSETS TOTAL ASSETS ¯ CURRENT LIABILITIES Note Payable - Bank CPLTD-Bank Accounts Payable-Trade Accrued Expenses Income Taxes Payable Operating Current Liabs ¯ TOTAL CURRENT LIABILITIES ¯ NON-CURRENT LIABILITIES Long Term Debt Operating Non-Cur Liabs Deferred Fed Inc Tax - LTP ¯ TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES ¯ NET WORTH Common Stock Retained Earnings ¯ 121 1,744 54 144 1,669 64 90 1,842 86 75 1,698 90 630 1,733 - (555) (35) 90 ¯ ¯ ¯ ¯ ¯ ¯ ¯ 1,370 1,936 1,690 2,211 1,605 2,141 1,756 2,610 1,608 3,056 1,733 2,313 - (125) (2,313) 3,056 ¯ ¯ ¯ ¯ ¯ ¯ ¯ 1,936 88 - 2,211 77 - 2,141 59 - 2,610 119 - 3,056 131 - 2,313 143 743 131 (143) ¯ ¯ ¯ ¯ ¯ ¯ ¯ 3,465 4,099 3,949 4,575 4,870 4,819 51 ¯ ¯ ¯ ¯ ¯ ¯ ¯ 1,644 182 1,885 282 1,922 356 2,011 421 2,957 568 723 - (723) 2,957 568 ¯ ¯ ¯ ¯ ¯ ¯ ¯ 1,826 1,161 2,167 1,412 2,278 1,675 2,432 1,912 3,525 2,205 723 - 2,802 2,205 ¯ ¯ ¯ ¯ ¯ ¯ ¯ 665 12 42 - 755 14 122 - 603 18 66 - 520 20 20 - 1,320 22 22 - 723 318 374 597 22 (318) 22 (374) ¯ ¯ ¯ ¯ ¯ ¯ ¯ 719 4,184 891 4,990 687 4,636 560 5,135 1,364 6,234 1,415 6,234 (51) - ¯ ¯ ¯ ¯ ¯ ¯ ¯ 433 199 651 277 - 1,200 226 832 236 - 1,148 142 583 214 30 - 1,134 115 980 222 - 1,475 169 1,139 281 - 792 137 1,103 6 567 683 32 36 281 (6) (567) ¯ ¯ ¯ ¯ ¯ ¯ ¯ 1,560 2,494 2,117 2,451 3,064 2,605 459 ¯ ¯ ¯ ¯ ¯ ¯ ¯ 907 - 860 - 630 - 492 - 1,347 - 530 611 12 817 (611) (12) ¯ ¯ ¯ ¯ ¯ ¯ ¯ 907 2,467 860 3,354 630 2,747 492 2,943 1,347 4,411 1,153 3,758 194 653 ¯ ¯ ¯ ¯ ¯ ¯ ¯ 17 1,700 17 1,619 17 1,872 17 2,175 17 1,806 2,476 17 (670) ¯ ¯ ¯ ¯ ¯ ¯ ¯ TOTAL NET WORTH TOTAL LIABILITIES & NET WORTH 1,717 4,184 1,636 4,990 1,889 4,636 2,192 5,135 1,823 6,234 2,476 6,234 (653) - Working Capital Tang Net Worth-Actual 1,905 1,717 1,605 1,636 1,832 1,889 2,124 2,192 1,806 1,823 2,214 2,102 (408) (279) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Moody’s KMV Sample Reports Page 36 Peer Comparison – Detailed Income Statement % MMAS Sample Customer (MMASSample) Prepared: 17:58, 9/22/2005 Detailed Income Statement - % Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 3/31/2004 6/30/2005 Months Covered 12 12 12 12 12 12 0 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Unqualif'd Unqualif'd 315228 Variance Accountant KPMG KPMG KPMG KPMG KPMG Peer Peer Analyst GJH GJH GJH GJH GJH 6/30/2005 Stmt Type Annual Annual Annual Annual Annual Source Currency: USD United States Dollars Target Currency: USD United States Dollars Net Sales - Manufacturing Division Net Sales - Catalog Division ¯ NET SALES/REVENUE 98.7 1.3 ¯ 100.0 95.5 4.5 ¯ 100.0 90.0 10.0 ¯ 100.0 80.7 19.3 ¯ 100.0 75.0 25.0 ¯ 100.0 100.0 ¯ 100.0 (25.0) 25.0 ¯ - Cost of Goods Sold Cost of Goods Sold - Depreciation ¯ TOTAL COST OF SALES/REV ¯ GROSS PROFIT 73.8 1.6 ¯ 75.3 ¯ 24.7 75.0 2.1 ¯ 77.1 ¯ 22.9 73.5 2.3 ¯ 75.7 ¯ 24.3 72.2 1.9 ¯ 74.1 ¯ 25.9 76.2 2.2 ¯ 78.4 ¯ 21.6 68.7 ¯ 68.7 ¯ 31.3 7.5 2.2 ¯ 9.7 ¯ (9.7) 18.6 0.2 ¯ 18.8 ¯ 5.9 20.4 0.2 ¯ 20.5 ¯ 2.4 20.1 0.1 ¯ 20.2 ¯ 4.1 20.7 0.1 ¯ 20.9 ¯ 5.1 22.2 0.2 ¯ 22.4 ¯ (0.8) 27.7 ¯ 27.7 ¯ 3.6 22.2 0.2 (27.7) ¯ (5.3) ¯ (4.4) 0.7 0.1 0.4 ¯ (0.1) ¯ 5.8 1.3 0.5 ¯ (0.8) ¯ 1.6 1.4 0.4 ¯ (0.9) ¯ 3.1 1.3 0.3 0.1 ¯ (0.9) ¯ 4.2 2.5 0.3 ¯ (2.2) ¯ (3.0) 1.8 ¯ (1.8) ¯ 1.8 2.5 0.3 (1.8) ¯ (0.4) ¯ (4.8) NET PROFIT 1.2 ¯ 4.5 0.3 ¯ 1.3 0.7 ¯ 2.4 1.2 ¯ 2.9 ¯ (3.0) ¯ 1.8 ¯ (4.8) EBIT EBITDA EBIDA 6.4 8.2 7.0 2.8 5.1 4.8 4.5 6.9 6.2 5.5 7.5 6.3 (0.5) 1.9 1.9 1.8 1.8 1.8 (2.3) 0.1 0.1 ¯ ¯ ¯ ¯ ¯ ¯ ¯ SG & A Expense Depreciation Operating Expense ¯ TOTAL OPERATING EXPENSE ¯ NET OPERATING PROFIT Interest Expense (-) Other Income Other Expense (-) Gain(Loss) on Asset Sale ¯ TOTAL OTHER INCOME(EXP) ¯ PROFIT BEFORE TAXES Current Income Tax ¯ ¯ Moody’s KMV Sample Reports Page 37 Peer Comparison – Detailed Income Sheet – Actual and % MMAS Sample Customer (MMASSample) Detailed Income Statement - Actual and % Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 Months Covered 12 Audit Mthd Unqualif'd Accountant KPMG Analyst GJH Stmt Type Annual Source Currency: USD United States Dollars Net Sales - Manufacturing Division Net Sales - Catalog Division 6/30/2002 12 Unqualif'd KPMG GJH Annual 6/30/2003 12 Unqualif'd KPMG GJH Annual 6/30/2004 12 Unqualif'd KPMG GJH Annual Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 3/31/2004 6/30/2005 12 0 315228 Variance Peer Peer 6/30/2005 6/30/2005 12 Unqualif'd KPMG GJH Annual Target Currency: USD United States Dollars 9,785 126 ¯ 9,911 98.7 1.3 ¯ 100.0 9,523 445 ¯ 9,968 95.5 4.5 ¯ 100.0 9,477 1,058 ¯ 10,535 90.0 10.0 ¯ 100.0 9,564 2,284 ¯ 11,848 80.7 19.3 ¯ 100.0 9,317 3,102 ¯ 12,419 75.0 25.0 ¯ 100.0 13,091 ¯ 13,091 100.0 ¯ 100.0 (3,774) 3,102 ¯ (672) (25.0) 25.0 ¯ - 7,311 155 ¯ 7,466 ¯ 2,445 73.8 1.6 ¯ 75.3 ¯ 24.7 7,477 209 ¯ 7,686 ¯ 2,282 75.0 2.1 ¯ 77.1 ¯ 22.9 7,739 239 ¯ 7,978 ¯ 2,557 73.5 2.3 ¯ 75.7 ¯ 24.3 8,552 224 ¯ 8,776 ¯ 3,072 72.2 1.9 ¯ 74.1 ¯ 25.9 9,468 273 ¯ 9,741 ¯ 2,678 76.2 2.2 ¯ 78.4 ¯ 21.6 8,993 ¯ 8,993 ¯ 4,098 68.7 ¯ 68.7 ¯ 31.3 475 273 ¯ 748 ¯ (1,420) 7.5 2.2 ¯ 9.7 ¯ (9.7) 1,843 19 ¯ 1,862 ¯ 583 18.6 0.2 ¯ 18.8 ¯ 5.9 2,032 15 ¯ 2,047 ¯ 235 20.4 0.2 ¯ 20.5 ¯ 2.4 2,114 13 ¯ 2,127 ¯ 430 20.1 0.1 ¯ 20.2 ¯ 4.1 2,454 17 ¯ 2,471 ¯ 601 20.7 0.1 ¯ 20.9 ¯ 5.1 2,755 21 ¯ 2,776 ¯ (98) 22.2 0.2 ¯ 22.4 ¯ (0.8) 3,626 ¯ 3,626 ¯ 472 27.7 ¯ 27.7 ¯ 3.6 2,755 21 (3,626) ¯ (850) ¯ (570) 22.2 0.2 (27.7) ¯ (5.3) ¯ (4.4) 68 14 42 ¯ (12) ¯ 571 0.7 0.1 0.4 ¯ (0.1) ¯ 5.8 126 46 2 ¯ (78) ¯ 157 1.3 0.5 ¯ (0.8) ¯ 1.6 147 47 ¯ (100) ¯ 330 1.4 0.4 ¯ (0.9) ¯ 3.1 153 32 13 ¯ (108) ¯ 493 1.3 0.3 0.1 ¯ (0.9) ¯ 4.2 306 35 ¯ (271) ¯ (369) 2.5 0.3 ¯ (2.2) ¯ (3.0) 236 ¯ (236) ¯ 236 1.8 ¯ (1.8) ¯ 1.8 306 35 (236) ¯ (35) ¯ (605) 2.5 0.3 (1.8) ¯ (0.4) ¯ (4.8) NET PROFIT 122 ¯ 449 1.2 ¯ 4.5 31 ¯ 126 0.3 ¯ 1.3 77 ¯ 253 0.7 ¯ 2.4 144 ¯ 349 1.2 ¯ 2.9 ¯ (369) ¯ (3.0) ¯ 236 ¯ 1.8 ¯ (605) ¯ (4.8) EBIT EBITDA EBIDA 639 813 691 6.4 8.2 7.0 283 507 476 2.8 5.1 4.8 477 729 652 4.5 6.9 6.2 646 887 743 5.5 7.5 6.3 (63) 231 231 (0.5) 1.9 1.9 236 236 236 1.8 1.8 1.8 (299) (5) (5) (2.3) 0.1 0.1 Dividends - Common Adj to Retained Earnings (27) (40) ¯ ¯ (207) ¯ ¯ ¯ ¯ (46) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ NET SALES/REVENUE Cost of Goods Sold Cost of Goods Sold - Depreciation ¯ TOTAL COST OF SALES/REV ¯ GROSS PROFIT SG & A Expense Depreciation Operating Expense ¯ TOTAL OPERATING EXPENSE ¯ NET OPERATING PROFIT Interest Expense (-) Other Income Other Expense (-) Gain(Loss) on Asset Sale ¯ TOTAL OTHER INCOME(EXP) ¯ PROFIT BEFORE TAXES Current Income Tax ¯ ¯ Moody’s KMV Sample Reports Page 38 Peer Comparison – Summary Balance Sheet – Actual MMAS Sample Customer (MMASSample) Prepared: 17:58, 9/22/2005 Summary Balance Sheet - Actual Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 3/31/2004 6/30/2005 Months Covered 12 12 12 12 12 12 0 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Unqualif'd Unqualif'd 315228 Variance Accountant KPMG KPMG KPMG KPMG KPMG Peer Peer Analyst GJH GJH GJH GJH GJH 6/30/2005 Stmt Type Annual Annual Annual Annual Annual Source Currency: USD United States Dollars ASSETS Cash & Equivalents Accts/Notes Rec-Trade (Net) Trade Inventory Operating Current Assets ¯ TOTAL CURRENT ASSETS Net Fixed Assets Investments Op Non-Current Assets Non-Op Non-Curr Assets Intangibles - Net ¯ TOTAL NON-CURRENT ASSETS ¯ TOTAL ASSETS ¯ LIABILITIES/NET WORTH S/T Loans Payable CPLTD-Bank Accounts Payable - Trade Other Accruals Taxes Payable Operating Current Liabilities ¯ TOTAL CURRENT LIABILITIES Long Term Debt Other Non-Current Liabilities Deferred Fed Income Tax - LTP ¯ TOTAL NON-CURRENT LIABILITIES ¯ TOTAL LIABILITIES Stock Retained Earnings ¯ TOTAL NET WORTH ¯ TOTAL LIABILITIES & NET WORTH ¯ Moody’s KMV Sample Reports Target Currency: USD United States Dollars 71 1,370 1,936 88 ¯ 3,465 121 1,690 2,211 77 ¯ 4,099 144 1,605 2,141 59 ¯ 3,949 90 1,756 2,610 119 ¯ 4,575 75 1,608 3,056 131 ¯ 4,870 630 1,733 2,313 143 ¯ 4,819 (555) (125) 743 (12) ¯ 51 665 12 42 ¯ 719 ¯ 4,184 ¯ 755 14 122 ¯ 891 ¯ 4,990 ¯ 603 18 66 ¯ 687 ¯ 4,636 ¯ 520 20 20 ¯ 560 ¯ 5,135 ¯ 1,320 22 22 ¯ 1,364 ¯ 6,234 ¯ 723 318 374 ¯ 1,415 ¯ 6,234 ¯ 597 22 (318) 22 (374) ¯ (51) ¯ ¯ 433 199 651 277 ¯ 1,560 1,200 226 832 236 ¯ 2,494 1,148 142 583 214 30 ¯ 2,117 1,134 115 980 222 ¯ 2,451 1,475 169 1,139 281 ¯ 3,064 792 137 1,103 6 567 ¯ 2,605 683 32 36 281 (6) (567) ¯ 459 907 ¯ 907 ¯ 2,467 860 ¯ 860 ¯ 3,354 630 ¯ 630 ¯ 2,747 492 ¯ 492 ¯ 2,943 1,347 ¯ 1,347 ¯ 4,411 530 611 12 ¯ 1,153 ¯ 3,758 817 (611) (12) ¯ 194 ¯ 653 17 1,700 ¯ 1,717 ¯ 4,184 ¯ 17 1,619 ¯ 1,636 ¯ 4,990 ¯ 17 1,872 ¯ 1,889 ¯ 4,636 ¯ 17 2,175 ¯ 2,192 ¯ 5,135 ¯ 17 1,806 ¯ 1,823 ¯ 6,234 ¯ 2,476 ¯ 2,476 ¯ 6,234 ¯ 17 (670) ¯ (653) ¯ ¯ Page 39 Peer Comparison – Summary Income Statement – % MMAS Sample Customer (MMASSample) Summary Income Statement - % Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 3/31/2004 6/30/2005 Months Covered 12 12 12 12 12 12 0 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Unqualif'd Unqualif'd 315228 Variance Accountant KPMG KPMG KPMG KPMG KPMG Peer Peer Analyst GJH GJH GJH GJH GJH 6/30/2005 Stmt Type Annual Annual Annual Annual Annual Source Currency: USD United States Dollars Sales/Revenues Target Currency: USD United States Dollars 100.0 100.0 100.0 100.0 100.0 100.0 - 73.8 1.6 ¯ 75.3 ¯ 24.7 75.0 2.1 ¯ 77.1 ¯ 22.9 73.5 2.3 ¯ 75.7 ¯ 24.3 72.2 1.9 ¯ 74.1 ¯ 25.9 76.2 2.2 ¯ 78.4 ¯ 21.6 68.7 ¯ 68.7 ¯ 31.3 7.5 2.2 ¯ 9.7 ¯ (9.7) 18.6 0.2 ¯ 18.8 ¯ 5.9 20.4 0.2 ¯ 20.5 ¯ 2.4 20.1 0.1 ¯ 20.2 ¯ 4.1 20.7 0.1 ¯ 20.9 ¯ 5.1 22.2 0.2 ¯ 22.4 ¯ (0.8) 27.7 ¯ 27.7 ¯ 3.6 22.2 (27.7) 0.2 ¯ (5.3) ¯ (4.4) (0.7) 0.1 0.4 ¯ (0.1) ¯ 5.8 (1.3) 0.5 ¯ (0.8) ¯ 1.6 (1.4) 0.4 ¯ (0.9) ¯ 3.1 (1.3) 0.3 0.1 ¯ (0.9) ¯ 4.2 (2.5) 0.3 ¯ (2.2) ¯ (3.0) (1.8) ¯ (1.8) ¯ 1.8 (2.5) 2.1 ¯ (0.4) ¯ (4.8) Income Taxes NET PROFIT 1.2 4.5 0.3 1.3 0.7 2.4 1.2 2.9 (3.0) 1.8 (4.8) EBIT EBITDA EBIDA 6.4 8.2 7.0 2.8 5.1 4.8 4.5 6.9 6.2 5.5 7.5 6.3 (0.5) 1.9 1.9 1.8 1.8 1.8 (2.3) 0.1 0.1 ¯ ¯ ¯ ¯ ¯ ¯ ¯ Cost of Sales/Revenues Cost of Sales - Depreciation ¯ TOTAL COST OF SALES/REV ¯ GROSS PROFIT S,G, & A Expense Operating Expense Depreciation ¯ TOTAL OPERATING EXP(INC) ¯ NET OPERATING PROFIT Interest Income(Expense) Other Income(Expense) Gain(Loss) on Sale of Assets ¯ TOTAL OTHER INCOME(EXP) ¯ PROFIT BEFORE TAXES ¯ Moody’s KMV Sample Reports Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Page 40 Peer Comparison – Summary Income Statement – Actual and % MMAS Sample Customer (MMASSample) Summary Income Statement - Actual and % Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 Months Covered 12 Audit Mthd Unqualif'd Accountant KPMG Analyst GJH Stmt Type Annual Source Currency: USD United States Dollars 6/30/2002 12 Unqualif'd KPMG GJH Annual 6/30/2003 12 Unqualif'd KPMG GJH Annual 6/30/2004 12 Unqualif'd KPMG GJH Annual Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 3/31/2004 6/30/2005 12 0 315228 Variance Peer Peer 6/30/2005 6/30/2005 12 Unqualif'd KPMG GJH Annual Target Currency: USD United States Dollars Sales/Revenues 9,911 100.0 9,968 100.0 10,535 100.0 11,848 100.0 12,419 100.0 13,091 100.0 (672) - Cost of Sales/Revenues Cost of Sales - Depreciation 7,311 155 ¯ 7,466 ¯ 2,445 73.8 1.6 ¯ 75.3 ¯ 24.7 7,477 209 ¯ 7,686 ¯ 2,282 75.0 2.1 ¯ 77.1 ¯ 22.9 7,739 239 ¯ 7,978 ¯ 2,557 73.5 2.3 ¯ 75.7 ¯ 24.3 8,552 224 ¯ 8,776 ¯ 3,072 72.2 1.9 ¯ 74.1 ¯ 25.9 9,468 273 ¯ 9,741 ¯ 2,678 76.2 2.2 ¯ 78.4 ¯ 21.6 8,993 ¯ 8,993 ¯ 4,098 68.7 ¯ 68.7 ¯ 31.3 475 273 ¯ 748 ¯ (1,420) 7.5 2.2 ¯ 9.7 ¯ (9.7) 1,843 19 ¯ 1,862 ¯ 583 18.6 0.2 ¯ 18.8 ¯ 5.9 2,032 15 ¯ 2,047 ¯ 235 20.4 0.2 ¯ 20.5 ¯ 2.4 2,114 13 ¯ 2,127 ¯ 430 20.1 0.1 ¯ 20.2 ¯ 4.1 2,454 17 ¯ 2,471 ¯ 601 20.7 0.1 ¯ 20.9 ¯ 5.1 2,755 21 ¯ 2,776 ¯ (98) 22.2 0.2 ¯ 22.4 ¯ (0.8) 3,626 ¯ 3,626 ¯ 472 27.7 ¯ 27.7 ¯ 3.6 2,755 (3,626) 21 ¯ (850) ¯ (570) 22.2 (27.7) 0.2 ¯ (5.3) ¯ (4.4) PROFIT BEFORE TAXES (68) 14 42 ¯ (12) ¯ 571 (0.7) 0.1 0.4 ¯ (0.1) ¯ 5.8 (126) 46 2 ¯ (78) ¯ 157 (1.3) 0.5 ¯ (0.8) ¯ 1.6 (147) 47 ¯ (100) ¯ 330 (1.4) 0.4 ¯ (0.9) ¯ 3.1 (153) 32 13 ¯ (108) ¯ 493 (1.3) 0.3 0.1 ¯ (0.9) ¯ 4.2 (306) 35 ¯ (271) ¯ (369) (2.5) 0.3 ¯ (2.2) ¯ (3.0) (236) ¯ (236) ¯ 236 (1.8) ¯ (1.8) ¯ 1.8 (306) 271 ¯ (35) ¯ (605) (2.5) 2.1 ¯ (0.4) ¯ (4.8) Income Taxes NET PROFIT 122 449 1.2 4.5 31 126 0.3 1.3 77 253 0.7 2.4 144 349 1.2 2.9 (369) (3.0) 236 1.8 (605) (4.8) EBIT EBITDA EBIDA 639 813 691 6.4 8.2 7.0 283 507 476 2.8 5.1 4.8 477 729 652 4.5 6.9 6.2 646 887 743 5.5 7.5 6.3 (63) 231 231 (0.5) 1.9 1.9 236 236 236 1.8 1.8 1.8 (299) (5) (5) (2.3) 0.1 0.1 Cash Dividends & Withdrawals Adj to Retained Earnings (27) (40) ¯ ¯ (207) ¯ ¯ ¯ ¯ (46) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ TOTAL COST OF SALES/REV ¯ GROSS PROFIT S,G, & A Expense Operating Expense Depreciation ¯ TOTAL OPERATING EXP(INC) ¯ NET OPERATING PROFIT Interest Income(Expense) Other Income(Expense) Gain(Loss) on Sale of Assets ¯ TOTAL OTHER INCOME(EXP) ¯ ¯ Moody’s KMV Sample Reports Page 41 Peer Comparison – Executive Financial Statement – Actual MMAS Sample Customer (MMASSample) Executive Financial Statement - Actual Industry Classification: NAICS Code: 315228 Statement Date Months Covered Audit Mthd Accountant Analyst Stmt Type 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 3/31/2004 12 12 12 12 12 12 Unqualif'd Unqualif'd Unqualif'd Unqualif'd Unqualif'd 315228 KPMG KPMG KPMG KPMG KPMG Peer GJH GJH GJH GJH GJH Annual Annual Annual Annual Annual Source Currency: USD United States Dollars Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 6/30/2005 0 Variance Peer 6/30/2005 Target Currency: USD United States Dollars ASSETS Cash & Near Cash Accts/Notes Rec (Net) Inventory Other Current Assets 71 1,370 1,936 88 ¯ TOTAL CURRENT ASSETS Net Fixed Assets LT Receivables & Investments Other Non-Current Assets Intangibles - Net ¯ TOTAL NON-CURRENT ASSETS ¯ TOTAL ASSETS ¯ LIABILITIES/NET WORTH S/T Loans Payable Current Portion - LTD Accounts Payable Accrued Liabilities Taxes Payable Other Current Liabilities ¯ TOTAL CURRENT LIABILITIES Long Term Debt Other Non-Current Liabilities ¯ TOTAL NON-CURRENT LIABILITIES ¯ 121 1,690 2,211 77 144 1,605 2,141 59 90 1,756 2,610 119 75 1,608 3,056 131 630 1,733 2,313 143 (555) (125) 743 (12) ¯ ¯ ¯ ¯ ¯ ¯ ¯ 3,465 4,099 3,949 4,575 4,870 4,819 51 665 12 42 - 755 14 122 - 603 18 66 - 520 20 20 - 1,320 22 22 - 723 318 374 597 22 (296) (374) ¯ ¯ ¯ ¯ ¯ ¯ ¯ 719 891 687 560 1,364 1,415 (51) ¯ ¯ ¯ ¯ ¯ ¯ ¯ 4,184 4,990 4,636 5,135 6,234 6,234 - ¯ ¯ ¯ ¯ ¯ ¯ ¯ 433 199 651 277 - 1,200 226 832 236 - 1,148 142 583 214 30 - 1,134 115 980 222 - 1,475 169 1,139 281 - 792 137 1,103 6 567 683 32 36 281 (6) (567) ¯ ¯ ¯ ¯ ¯ ¯ ¯ 1,560 2,494 2,117 2,451 3,064 2,605 459 907 - 860 - 630 - 492 - 1,347 - 530 623 817 (623) ¯ ¯ ¯ ¯ ¯ ¯ ¯ 907 860 630 492 1,347 1,153 194 ¯ ¯ ¯ ¯ ¯ ¯ ¯ TOTAL LIABILITIES 2,467 3,354 2,747 2,943 4,411 3,758 653 TOTAL NET WORTH TOTAL LIABILITIES & NET WORTH 1,717 4,184 1,636 4,990 1,889 4,636 2,192 5,135 1,823 6,234 2,476 6,234 (653) - ¯ ¯ ¯ ¯ ¯ ¯ ¯ 9,911 7,311 155 9,968 7,477 209 10,535 7,739 239 11,848 8,552 224 12,419 9,468 273 13,091 8,993 - (672) 475 273 ¯ INCOME STATEMENT Net Sales/Revenues Cost of Sales/Revenues Cost of Sales - Depreciation ¯ GROSS PROFIT Net Operating Expenses Depr & Amort ¯ NET OPERATING PROFIT Interest Income(Expense) Other Income(Expense) ¯ PROFIT BEFORE TAXES Income Taxes ¯ PROFIT BEFORE EXTRAORDINARY ITEMS ¯ NET PROFIT ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 2,445 1,843 19 2,282 2,032 15 2,557 2,114 13 3,072 2,454 17 2,678 2,755 21 4,098 3,626 - (1,420) (871) 21 ¯ ¯ ¯ ¯ ¯ ¯ ¯ 583 (68) 56 235 (126) 48 430 (147) 47 601 (153) 45 (98) (306) 35 472 (236) (570) (306) 271 ¯ ¯ ¯ ¯ ¯ ¯ ¯ 571 122 157 31 330 77 493 144 (369) - 236 - (605) - ¯ ¯ ¯ ¯ ¯ ¯ ¯ 449 126 253 349 (369) 236 (605) ¯ ¯ ¯ ¯ ¯ ¯ ¯ 449 126 253 349 (369) 236 (605) ¯ ¯ ¯ ¯ ¯ ¯ ¯ COMPREHENSIVE INCOME 449 126 253 349 (369) 236 (605) Cash Dividends & Withdrawals Adj to Retained Earnings (27) (40) (207) - - (46) - - - - ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Moody’s KMV Sample Reports Page 42 Peer Comparison – Executive Financial Statement – % MMAS Sample Customer (MMASSample) Executive Financial Statement - % Industry Classification: NAICS Code: 315228 Statement Date Months Covered Audit Mthd Accountant Analyst Stmt Type 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 3/31/2004 12 12 12 12 12 12 Unqualif'd Unqualif'd Unqualif'd Unqualif'd Unqualif'd 315228 KPMG KPMG KPMG KPMG KPMG Peer GJH GJH GJH GJH GJH Annual Annual Annual Annual Annual Source Currency: USD United States Dollars Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 6/30/2005 0 Variance Peer 6/30/2005 Target Currency: USD United States Dollars ASSETS Cash & Near Cash Accts/Notes Rec (Net) Inventory Other Current Assets 1.7 32.7 46.3 2.1 ¯ 2.4 33.9 44.3 1.5 3.1 34.6 46.2 1.3 1.8 34.2 50.8 2.3 1.2 25.8 49.0 2.1 10.1 27.8 37.1 2.3 (8.9) (2.0) 11.9 (0.2) ¯ ¯ ¯ ¯ ¯ ¯ ¯ TOTAL CURRENT ASSETS 82.8 82.1 85.2 89.1 78.1 77.3 0.8 Net Fixed Assets LT Receivables & Investments Other Non-Current Assets Intangibles - Net 15.9 0.3 1.0 - 15.1 0.3 2.4 - 13.0 0.4 1.4 - 10.1 0.4 0.4 - 21.2 0.4 0.4 - 11.6 5.1 6.0 9.6 0.4 (4.7) (6.0) ¯ TOTAL NON-CURRENT ASSETS ¯ TOTAL ASSETS ¯ LIABILITIES/NET WORTH S/T Loans Payable Current Portion - LTD Accounts Payable Accrued Liabilities Taxes Payable Other Current Liabilities ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 17.2 17.9 14.8 10.9 21.9 22.7 (0.8) ¯ ¯ ¯ ¯ ¯ ¯ ¯ 100.0 100.0 100.0 100.0 100.0 100.0 - ¯ ¯ ¯ ¯ ¯ ¯ ¯ 10.3 4.8 15.6 6.6 - 24.0 4.5 16.7 4.7 - 24.8 3.1 12.6 4.6 0.6 - 22.1 2.2 19.1 4.3 - 23.7 2.7 18.3 4.5 - 12.7 2.2 17.7 0.1 9.1 11.0 0.5 0.6 4.5 (0.1) (9.1) ¯ ¯ ¯ ¯ ¯ ¯ ¯ TOTAL CURRENT LIABILITIES 37.3 50.0 45.7 47.7 49.1 41.8 7.4 Long Term Debt Other Non-Current Liabilities 21.7 - 17.2 - 13.6 - 9.6 - 21.6 - 8.5 10.0 13.1 (10.0) ¯ TOTAL NON-CURRENT LIABILITIES ¯ TOTAL LIABILITIES TOTAL NET WORTH TOTAL LIABILITIES & NET WORTH ¯ INCOME STATEMENT Net Sales/Revenues Cost of Sales/Revenues Cost of Sales - Depreciation ¯ GROSS PROFIT Net Operating Expenses Depr & Amort ¯ NET OPERATING PROFIT Interest Income(Expense) Other Income(Expense) ¯ PROFIT BEFORE TAXES Income Taxes ¯ PROFIT BEFORE EXTRAORDINARY ITEMS ¯ NET PROFIT ¯ COMPREHENSIVE INCOME ¯ Moody’s KMV Sample Reports ¯ ¯ ¯ ¯ ¯ ¯ ¯ 21.7 17.2 13.6 9.6 21.6 18.5 3.1 ¯ ¯ ¯ ¯ ¯ ¯ ¯ 59.0 67.2 59.3 57.3 70.8 60.3 10.5 41.0 100.0 32.8 100.0 40.7 100.0 42.7 100.0 29.2 100.0 39.7 100.0 (10.5) - ¯ ¯ ¯ ¯ ¯ ¯ ¯ 100.0 73.8 1.6 100.0 75.0 2.1 100.0 73.5 2.3 100.0 72.2 1.9 100.0 76.2 2.2 100.0 68.7 - 7.5 2.2 ¯ ¯ ¯ ¯ ¯ ¯ ¯ 24.7 18.6 0.2 22.9 20.4 0.2 24.3 20.1 0.1 25.9 20.7 0.1 21.6 22.2 0.2 31.3 27.7 - (9.7) (5.5) 0.2 ¯ ¯ ¯ ¯ ¯ ¯ ¯ 5.9 (0.7) 0.6 2.4 (1.3) 0.5 4.1 (1.4) 0.4 5.1 (1.3) 0.4 (0.8) (2.5) 0.3 3.6 (1.8) (4.4) (2.5) 2.1 ¯ ¯ ¯ ¯ ¯ ¯ ¯ 5.8 1.2 1.6 0.3 3.1 0.7 4.2 1.2 (3.0) - 1.8 - (4.8) - ¯ ¯ ¯ ¯ ¯ ¯ ¯ 4.5 1.3 2.4 2.9 (3.0) 1.8 (4.8) ¯ ¯ ¯ ¯ ¯ ¯ ¯ 4.5 1.3 2.4 2.9 (3.0) 1.8 (4.8) ¯ ¯ ¯ ¯ ¯ ¯ ¯ 4.5 1.3 2.4 2.9 (3.0) 1.8 (4.8) ¯ ¯ ¯ ¯ ¯ ¯ ¯ Page 43 Peer Comparison – Ratios MMAS Sample Customer (MMASSample) Prepared: 17:58, 9/22/2005 Ratios Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 6/30/2005 3/31/2004 6/30/2005 Months Covered 12 12 12 12 12 12 0 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Unqualif'd Unqualif'd 315228 Variance Accountant KPMG KPMG KPMG KPMG KPMG Peer Peer Analyst GJH GJH GJH GJH GJH 6/30/2005 Stmt Type Annual Annual Annual Annual Annual LIQUIDITY Working Capital Quick Ratio Current Ratio Net Sales/Working Capital 1,905 0.92 2.22 5.20 1,605 0.73 1.64 6.21 1,832 0.83 1.87 5.75 2,124 0.75 1.87 5.58 1,806 0.55 1.59 6.88 2,214 0.91 1.85 5.91 (408) (0.36) (0.26) 0.96 LEVERAGE Net Worth-Actual Tang Net Worth-Actual Eff Tang Net Worth-Actual Debt/Worth Debt/Tang Worth Debt Less Sub Debt-Liability/Eff Tg Wth Borrowed Funds/Eff Tg Worth LT Debt/Net Fixed Assets Total Liabilities/Total Assets 1,717 1,717 1,717 1.44 1.44 1.44 0.90 1.66 0.59 1,636 1,636 1,636 2.05 2.05 2.05 1.40 1.44 0.67 1,889 1,889 1,889 1.45 1.45 1.45 1.02 1.28 0.59 2,192 2,192 2,192 1.34 1.34 1.34 0.79 1.17 0.57 1,823 1,823 1,823 2.42 2.42 2.42 1.64 1.15 0.71 2,476 2,102 2,102 1.52 1.79 1.79 0.69 0.92 0.60 (653) (279) (279) 0.90 0.63 0.63 0.95 0.23 0.10 COVERAGE Interest Coverage Net Income+Depr+Amort-Divs/CPLTD EBITDA/Interest Exp+CPLTD EBITDA EBIDA Fixed Charge Coverage 9.40 2.99 3.04 813 691 3.04 2.25 0.63 1.44 507 476 1.44 3.24 3.56 2.52 729 652 2.52 4.22 4.73 3.31 887 743 3.31 (0.21) (0.44) 0.49 231 231 0.49 N/A 1.72 1.72 236 236 1.72 (0.21) (2.17) (1.24) (5) (5) (1.24) PROFITABILITY (%) Return on Assets Return on Equity Gross Margin Gross Margin (plus Depr) % Operating Expense % Operating Expense (excl Depr) % Operating Profit Margin Operating Profit Margin (plus Depr) % Net Margin Dividend Payout Rate Effective Tax Rate 10.73 26.15 24.67 26.23 18.79 18.60 5.88 7.64 4.53 6.01 21.37 2.53 7.70 22.89 24.99 20.54 20.39 2.36 4.60 1.26 164.29 19.75 5.46 13.39 24.27 26.54 20.19 20.07 4.08 6.47 2.40 23.33 6.80 15.92 25.93 27.82 20.86 20.71 5.07 7.11 2.95 13.18 29.21 (5.92) (20.24) 21.56 23.76 22.35 22.18 (0.79) 1.58 (2.97) - 3.79 9.53 31.30 31.30 27.70 27.70 3.61 3.61 1.80 - (9.70) (29.77) (9.74) (7.54) (5.35) (5.51) (4.39) (2.03) (4.77) - ACTIVITY Gross Accounts Receivable Days Net Accounts Receivable Days Raw Materials Days on Hand Work in Process Days on Hand Inventory Days on Hand Inventory Days on Hand Inventory Days on Hand (excl Depr) Accounts Payable Days Accounts Payable Days (excl Depr) Net Sales/Total Assets Net Sales/Net Worth Net Sales/Net Fixed Assets Profit Before Taxes/Total Assets (%) Sustainable Growth 52.44 50.45 94.65 94.65 96.65 31.83 32.50 2.37 5.77 14.90 13.65 32.59 63.86 61.88 105.00 105.00 107.93 39.51 40.62 2.00 6.09 13.20 3.15 (4.72) 57.82 55.61 97.95 97.95 100.98 26.67 27.50 2.27 5.58 17.47 7.12 15.46 56.75 54.10 108.55 108.55 111.39 40.76 41.83 2.31 5.41 22.78 9.60 16.04 49.90 47.26 114.51 114.51 117.81 42.68 43.91 1.99 6.81 9.41 (5.92) (16.83) 48.32 93.88 93.88 93.88 44.77 44.77 2.10 5.29 18.11 3.79 11.80 49.90 (1.06) (93.88) 114.51 20.63 23.93 (2.09) (0.86) (0.11) 1.53 (8.70) (9.70) (28.63) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Moody’s KMV Sample Reports Page 44 Peer Comparison – Comparison of Industry Values MMAS Sample Customer (MMASSample) Prepared: 17:58, 9/22/2005 Comparison of Industry Values Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Based on unqualified financial data for fiscal year 2005. The analysis of this company uses the 2004 data for all of the companies in the industry code 315228, Men's and boys' cut and sew other outerwear manufacturing, for comparative purposes. The peer group consists of 56 companies. BALANCE SHEET DATA Cust Value Peer Value Variance Cash & Equivalents 1.2 10.1 (8.9) Trade Receivables - (net) 25.8 27.8 (2.0) Inventory 49.0 37.0 12.0 All Other Current Assets 2.1 2.3 (0.2) Total Current Assets 78.1 77.2 0.9 Fixed Assets (net) Intangibles All Other Non-Current Assets Total Non-Current Assets 21.2 0.7 21.9 11.6 6.0 5.1 22.7 9.6 (6.0) (4.4) (0.8) Notes Payable-Short Term Current Maturities-L/T/D Trade Payables Income Taxes Payable All Other Current Liabilities Total Current Liabilities 23.7 2.7 18.3 4.5 49.1 12.7 2.2 17.7 0.1 9.1 41.8 11.0 0.5 0.6 (0.1) (4.6) 7.3 Long Term Debt Deferred Taxes All Other Non-Current Liabilities Total Non-Current Liabilities Net Worth 21.6 21.6 29.2 8.5 0.2 9.8 18.5 39.7 13.1 (0.2) (9.8) 3.1 (10.5) 21.6 22.4 (0.8) (2.2) (3.0) 31.3 27.7 3.6 1.8 1.8 (9.7) (5.3) (4.4) (4.0) (4.8) Cust Value Peer Value Variance 1.6 - 4.6 1.9 1.2 (3.0) (0.3) 0.4 Quick Ratio Upper Median Lower 0.5 - 1.9 1.1 0.5 (1.4) (0.6) - A/R Days Turnover Upper Median Lower 47 - 30 46 71 17 1 (24) 115 - 51 86 146 64 29 (31) A/P Days Turnover Upper Median Lower 43 - 16 32 58 27 11 (15) Sales/Working Capital Upper Median Lower 6.9 - 3.4 6.4 19.7 3.5 0.5 (12.8) (0.2) - 13.5 2.5 N/A N/A INCOME DATA Gross Profit (%) Operating Expenses (%) Operating Profit (%) All Other Expenses (net) Profit Before Taxes (%) RATIOS Current Ratio Upper Median Lower Inventory Days Upper Median Lower Interest Coverage Upper Median Moody’s KMV Sample Reports Page 45 MMAS Sample Customer (MMASSample) Comparison of Industry Values Industry Classification: NAICS Code: 315228 Lower - Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 1.5 N/A Net Income+Depr+Amort-Divs/CPLTD Upper (0.4) Median Lower - - N/A N/A N/A Net Fixed Asset/TNW Upper Median Lower 0.7 - 0.1 0.3 1.1 0.6 0.4 (0.4) Debt/Tang Net Worth Upper Median Lower 2.4 - 0.6 2.2 7.1 1.8 0.2 (4.7) (20.2) - 71.2 14.4 2.9 N/A N/A N/A (5.9) - 12.4 5.9 0.8 N/A N/A N/A Sales/Net Fixed Assets Upper Median Lower 9.4 - 72.5 24.5 13.5 (63.1) (15.1) (4.1) Sales/Total Assets Upper Median Lower 2.0 - 2.9 2.1 1.5 (0.9) (0.1) 0.5 Depr & Amort/Sales (%) Upper Median Lower 2.4 - 0.4 0.9 1.8 2.0 1.5 0.6 Officer Comp/Sales (%) Upper Median Lower - 2.2 3.5 5.5 (2.2) (3.5) (5.5) % Profit B4 Taxes/TNW Upper Median Lower % Profit B4 Taxes/TA Upper Median Lower The RiskCalc™ peer values were calculated using RiskCalc™ for private companies (North America) version 1.50. Peer sample sizes for RiskCalc™ values are different from the above information and the RiskCalc™ sample size for this peer group consists of 47 companies. Customer values for RiskCalc™ are not available on this report. Please select the RiskCalc™ report from the print menu to view customer RiskCalc™ values. RISKCALC™ Peer Value 1 Yr EDF Credit Measure Upper Median Lower - 0.5 1.1 3.0 5 Yr EDF Credit Measure Upper Median Lower - 3.7 7.2 9.6 Moody’s KMV Sample Reports Page 46 FINANCIAL PACKAGE REPORTS CONSULTANT REPORTS Consultant Reports are narrative reports based on a rule-based expert system that analyzes changes and trends in the financial statement data (balance sheet, income statement, cash flow, and ratio). Consultant reports can be used as a due diligence check for experienced analysts and as guidance for new analysts. In addition to the sample Consultant Reports shown in this document, the following reports are also available: 1. Consultant Ratios 2. Financial Performance Analysis Moody’s KMV Sample Reports Page 47 Quick Call Summary MMAS Sample Customer (MMASSample) Quick Call Summary Industry Classification: NAICS Code: 315228 This analysis is based on unqualif'd financial data for fiscal year ending 6/30/2005. Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) All financial information is reported in USD. The analysis of this company uses the 2004 data for all of the companies in the industry code 315228, men's and boys' cut and sew other outerwear manufacturing, for comparative purposes. The peer group consists of 56 companies. SALES GROWTH Net Sales increased moderately, growing by 4.82%. This is less than the 12.46% growth rate for 2004. CASH STATUS There was 139 of cash flow from operations generated in 2005, which was insufficient to cover all financing costs or any debt amortization. Therefore, capital and investment expenditures of 1,098 had to be met by new debt, additional equity, or cash depletion. NEGATIVE INDICATORS Gross Margin (excluding Cost of Goods Depreciation) decreased significantly to 23.76% compared to 27.82% in 2004 which resulted in a cash outflow of -504. The peer group median is 31.3%. Operating expenses (excluding depreciation) as a percentage of sales increased moderately from 20.71% in 2004 to 22.18% during the current period, which resulted in a cash outflow of 183. Operating Profit turned negative in 2005, at -98, which was -0.79% of sales. Operating Profit of -98 decreased very significantly to -0.79% of sales from 5.07% in 2004. Net Profit Margin turned negative, at -2.97% of sales, providing Net Profit of -369. Bad Debt Reserve (as a % of Accounts Receivable) is at a high level and is increasing. Debt/TNW increased very significantly to 2.42. Moody’s KMV Sample Reports Page 48 Focus Questions Report MMAS Sample Customer (MMASSample) Focus Questions Report Industry Classification: NAICS Code: 315228 This analysis is based on unqualif'd financial data for fiscal year ending 6/30/2005. Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) All financial information is reported in USD United States Dollars. SALES GROWTH was moderate at 4.82% in 2005 although lower than 12.46% in the prior year. Was this slowing rate caused by: Change in sales targets set by management? Change in strategic direction with regard to marketing goals? Changes in product mix? Capacity limitations? Increased competition in the company's major markets? Financial deterioration of major buyers? Changes in general market demand? Will the growth rate continue to decline or will it stabilize in the near future? The business, even at this modest growth rate, is not generating sufficient cash to service its debt. Is management considering cost controls or reductions? Are wages and salaries unusually high? Can management tighten control of balance sheet cash flow drivers? What has caused the decline of GROSS MARGIN (excl. Cost of Sales-Depreciation) to 23.76%? Management-initiated price reductions to gain market share? Production or distribution inefficiencies? Increased inventory costs? Strategic mistakes? Price pressure from key buyers due to product/service issues? Loss of market share due to obsolescence or style factors? Increased competition from major rivals? Increased cost pressures from labor or suppliers? Can management reverse or halt this decline? If not, are strategic plans being developed to address the fundamental issues? What has caused the OPERATING EXPENSE (excl. depreciation) to increase as a percent of sales? Increased administrative or overhead costs? Increased marketing or advertising costs? Higher selling or technical costs due to salary pressures? High proportion of fixed costs in operating expense? Expansion or reorganization costs? Unusual necessary expenses? OPERATING PROFIT was -98 in 2005. Does management have plans to restore operating profitability? NET PROFIT was negative, at -369. Can management effect changes to return the company to profitability? Why are ACCOUNTS RECEIVABLE in days at such a high level? Is this normal for this business or industry? If not, how is management planning to speed A/R turnover? Why is BAD DEBT RESERVE high and increasing? What is management doing to improve asset quality? The company seems to be managing its Accounts Receivable, Trade Creditors, and Inventory turnover consistently. Is this expected to continue? If not, what will be the contributing factors? What plans does management have to offset these changes? Does the company expect a continued high level of CAPITAL EXPENDITURES for the next several years? Even so, are there any leased premises or equipment? Do any of these leases have cancellation or obsolescence risk? Does management plan to continue this high spending rate? If so, how much further investment is expected or necessary? If not, what sales level can be sustained by capital assets? What caused DEBT/TNW to increase in 2005? Were these changes consistent with management plans? Moody’s KMV Sample Reports Page 49 Cash Flow Summary MMAS Sample Customer (MMASSample) Cash Flow Summary Industry Classification: NAICS Code: 315228 Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Based on unqualified financial data for fiscal year 2005. All financial information is reported in USD United States Dollars. The analysis of this company uses the 2004 data for all of the companies in the industry code 315228, Men's and boys' cut and sew other outerwear manufacturing, for comparative purposes. The peer group consists of 56 companies. OVERVIEW With positive Cash After Operations during the period, the business was capable of funding its trading cycle from internal operations. While an increase in trading accounts absorbed 92 in cash flow, Operating Profit (excluding depreciation) covered this increase and allowed the business to realize 104 of Cash After Operations. Net Cash After Operations was positive during the period, however it was not adequate to cover interest payments or the current portion of long term debt. This means the business is relying on sources of funding that are not part of its trading cycle. You will want to identify these sources. Typically they include: - Increasing levels of bank or other external debt; - Decrease in cash or cash equivalents; - Liquidation of other non-operating assets (e.g., investments, fixed assets); - Increases in equity; - Increases in other non-operating liabilities. Consistent reliance on these funding sources for meeting debt service may be a concern since it can weaken the financial position of the company. In addition, these additional sources of funding may not be available to support future cash needs. In addition to examining cash flow for the recent period, you also need to consider the past trend of cash flow. Historically, the cash performance of the business has been weak. In two of the past 4 periods, Cash After Debt Amortization has been negative which means Net Cash After Operations has been inadequate to meet requirements for all financial charges and scheduled debt service. Over the past 4 periods, Cash after Debt Amortization has averaged -122. If this pattern continues, the future prospect of repayment from internal operations is limited and the ability of the business to remain a going concern may be threatened. CASH EFFECT OF MANAGEMENT Given the inability of the business to cover its financial charges and debt service from operating cash flows during the period, you will want to determine the underlying reasons for this cash performance and their significance. You may want to start by examining the magnitude of the cash impact from changes in some key financial factors known as "cash flow drivers". These are the factors in a company's business that, by varying from one period to the next, can significantly influence operating cash flows. The cash effect of changes in each of these factors is discussed below. CASH MARGIN MANAGEMENT PROFITABILITY: During the current period, the Gross Profit Margin (excluding Cost of Goods Sold depreciation) declined from 27.82% to 23.76% which reduced Cash After Operations during the period by 504. Over the past 4 periods, the cumulative effect on cash of the period-to-period changes in the Gross Profit Margin totaled -313 and averaged -78. Operating expenses (excluding depreciation) as a percentage of sales increased from 20.71% to 22.18% during the current period, which reduced Cash After Operations by 183. Over the past 4 periods, the cumulative effect on cash flow of the period-to-period change in Operating Expenses (excluding depreciation) as a percentage of sales totaled -404 and averaged -101. Overall, the combination of the change in Gross Profit Margin and Operating Expenses as a percentage of Sales produced a negative cash effect of 687. TRADING ACCOUNT MANAGEMENT ACCOUNTS RECEIVABLE: During the current period, the business converted its sales to cash more quickly than in the previous period. The reduction in A/R days from 54.10 days to 47.26 days increased Cash After Operations by 233. Over the past 4 periods, the cumulative effect on cash flow of the period-to-period change in A/R days totaled 151 and averaged 38. INVENTORY: During the current period, relative levels of inventory increased from the prior period. The change in inventory due to management decreased Cash After Operations by 166. Over the past 4 periods, the cumulative effect on cash flow of the period-to-period change in inventory totaled -494 and averaged -124. Moody’s KMV Sample Reports Page 50 ACCOUNTS PAYABLE: During the current period, relative levels of accounts payable increased from the prior period. The change in accounts payable due to management was 54. Over the past 4 periods, the cumulative effect on cash flow of the period-to-period change in the accounts payable days totaled 278 and averaged 69. OTHER OPERATING ASSETS: During the current period, an increase in other operating assets from 119 to 131 decreased Cash After Operations. The cash effect of management (vs. sales growth) was -6. ACCRUED EXPENSES: During the current period, relative levels of accrued expenses increased from the prior period. The change in accrued expenses due to management was 32. The management of trading accounts produced a 120 net effect on Cash After Operations. The management of the Other Factors produced a 26 net effect. Overall, the combined management of trading accounts and other factors produced a 146 net effect on Cash After Operations. For analysis, consider the following issues: With positive Cash After Operations during the period, the business was capable of funding its trading cycle from internal operations. While an increase in trading accounts absorbed 92 in cash flow, Operating Profit (excluding depreciation) covered this increase and allowed the business to realize 104 of Cash After Operations. CASH EFFECT OF SALES GROWTH During the period, sales increased by 4.82%. An increase in sales generally requires a proportional increase in trading accounts and this produced a 259 net cash effect. Other factors had a 21 net effect. Overall, the combined growth of trading accounts and other factors produced a -238 net effect on Cash After Operations. Over the past 4 periods, the cumulative effect on cash flow of the period-to-period changes in trading accounts due to sales growth totaled -804 and averaged -201. The combined growth of trading accounts and other factors totaled -723 and averaged -181. Moody’s KMV Sample Reports Page 51 Financial Statements Alerts MMAS Sample Customer (MMASSample) Financial Statement Alerts Industry Classification: NAICS Code: 315228 Based on unqualifid financial data for fiscal year 2005. Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) All financial information is reported in USD United States Dollars. The analysis of this company uses the 2004 data for all of the companies in the industry code 315228, Men's and boys' cut and sew other outerwear manufacturing, for comparative purposes. The peer group consists of 56 companies. This report presents comments about problems found in the financial statements of MMAS Sample Customer. These comments direct the analyst's attention to special conditions or potential problems. In addition, this report generates notes about potential discrepancies and areas of concern on the borrower's financial reports. INDUSTRY VALUES There are no comparative industry values available for Net Profit + Depr./Cur. Mat. LTD for the SIC code and asset size category you selected. You may want to select a different asset size category INCOME TAXES You may be concerned about contingent tax liabilities based on the low effective tax rate and/or the low average effective tax rate. These rates are calculated on the most recent annual income statement. The tax rate may have resulted from Investment Tax Credits or Net Operating Loss Carry Forwards. Audited statements will reconcile the effective to statutory rate. However, if the statements are not audited, look in particular for the following possible warning signals: - Recent tax audits, - Aggressive use of tax shelters, and/or - Primarily cash operations. You should take these warning signals into account when estimating tax contingent liabilities. You can also use a footnote to point out concerns and relevant facts. GROSS FIXED ASSETS In this period, accumulated depreciation is 62.55% of Gross Fixed Assets. This percentage indicates the borrower may need higher than planned capital expenditures to support future operations. If this percentage has been consistently high in recent years, you should investigate it further with the borrower. In your analysis, you should pay close attention to its effect on the company's projected financial condition. Moody’s KMV Sample Reports Page 52 Summary of Financial Parameters MMAS Sample Customer (MMASSample) Summary of Financial Parameters Industry Classification: NAICS Code: 315228 Based on unqualified financial data for fiscal year 2005. Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) All financial information is reported in USD United States Dollars. The analysis of this company uses the 2004 data for all of the companies in the industry code 315228 - Men's and boys' cut and sew other outerwear manufacturing, for comparative purposes. The peer group consists of 56 companies. Moderate Sales Growth (%) Change Gross Margin (%) Change Operating Expenses (%) Change A/R Days Change Inventory Days Change A/P Days Change UCA Cash Flow/CPLTD Change Net Income+Depr+Amort-Divs/CPLTD Change Debt/TNW Change Net Margin (PB4T/Sales) Change EBIT/Interest Change Current Ratio Quick Ratio Profit Before Tax/TNW Profit Before Tax/TA Net Sales/Fixed Assets Net Sales/Total Assets Operating Profit Margin Operating Exp/Gross Margin % Capital Exp. Over Expected % Capital Exp. Under Expected 2.00 0.25 0.25 2.00 2.00 2.00 0.15 0.15 0.10 0.25 0.15 0.10 0.10 1.00 0.25 0.25 0.10 0.25 1.00 10.00 10.00 Significant 8.00 2.50 2.50 8.00 8.00 8.00 1.00 1.00 0.50 1.50 1.00 0.50 0.50 4.00 2.00 2.00 1.50 1.50 4.00 Adequate UCA Cash Flow/CPLTD Net Income+Depr+Amort-Divs/CPLTD EBIT/Interest Moody’s KMV Sample Reports 1.00 1.00 1.00 Page 53 FINANCIAL PACKAGE REPORTS EDF MEASURES REPORTS TM The EDF Measures Reports include both Moody’s KMV RiskCalc ® and CreditEdge sample reports. TM TM RiskAnalyst is integrated with RiskCalc, which provides you with Estimated Default Frequency (EDF ) credit measures for private companies. Built from over 15 years of experience with market and fundamental data and modeling, EDF credit measures have been extensively validated on defaults and have become the de facto standard for lenders and investors. The General Business Financial Template (MMAS) is integrated with the following geographic specific RiskCalc models: • United States • Canada • Australia The RiskCalc for Private Firm report is based on RiskCalc for the United States. RiskAnalyst is also integrated with CreditEdge, which provides you with Estimated Default Frequency (EDF) credit measures for public companies. The CreditEdge report shows the information available in RiskAnalyst for public companies. Moody’s KMV Sample Reports Page 54 RiskCalc for Private Firm MMAS Sample Customer (MMASSample) RiskCalc for Private Firm (United States) - Version 3.1 Industry Classification: NAICS Code: 315228 EDFs calculated with Credit Cycle Adjustments Statement Date 6/30/2001 Months Covered 12 Audit Mthd Unqualif'd Accountant KPMG Analyst GJH Stmt Type Annual Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands SYSTEMREPORTS (3.1.8.0) 6/30/2002 12 Unqualif'd KPMG GJH Annual 6/30/2003 12 Unqualif'd KPMG GJH Annual 6/30/2004 12 Unqualif'd KPMG GJH Annual 6/30/2005 12 Unqualif'd KPMG GJH Annual Source Currency: USD United States Dollars Target Currency: USD United States Dollars Exchange Rate: Exchange Rate Date: 1 6/30/2001 1 6/30/2002 1 6/30/2003 1 6/30/2004 1 6/30/2005 1 Yr Bond Default Rate Mapping 1 Yr Percentile 1 Yr Custom Rating Ba2.edf 59.02 N/A Ba3.edf 69.72 N/A Baa3.edf 34.71 N/A Baa2.edf 17.31 N/A B2.edf 86.44 N/A 5 Yr Bond Default Rate Mapping 5 Yr Percentile 5 Yr Custom Rating Ba2.edf 62.42 N/A Ba3.edf 77.21 N/A Ba1.edf 42.59 N/A Baa3.edf 28.96 N/A B1.edf 86.15 N/A Cumulative EDFs: 1 Year 2 Year 3 Year 4 Year 5 Year 1.24 2.59 3.98 5.39 6.81 1.76 3.63 5.52 7.42 9.31 0.62 1.45 2.39 3.39 4.45 0.30 0.85 1.57 2.42 3.37 4.26 6.84 8.98 10.88 12.60 Forward EDFs: 1 Year 2 Year 3 Year 4 Year 5 Year 1.24 1.37 1.43 1.47 1.50 1.76 1.91 1.97 2.01 2.04 0.62 0.84 0.95 1.03 1.09 0.30 0.56 0.72 0.86 0.98 4.26 2.69 2.30 2.08 1.93 Annualized EDFs: 1 Year 2 Year 3 Year 4 Year 5 Year 1.24 1.30 1.35 1.38 1.40 1.76 1.83 1.88 1.91 1.93 0.62 0.73 0.80 0.86 0.91 0.30 0.43 0.53 0.61 0.68 4.26 3.48 3.09 2.84 2.66 1-Yr. Relative Contributions: Return On Assets (ROA) Sales Growth Cash to Assets Change in AR Turnover Change in Return On Assets (ROA) Inventory to Sales Cash Flow to Interest Expense Retained Earnings to Current Liabilities Current Liabilities to Sales Leverage Size -31.63 N/A 23.61 N/A N/A 9.24 -19.90 -9.40 -0.75 1.20 -4.27 -9.26 -8.49 15.56 10.24 17.74 7.58 18.55 -0.49 8.39 0.79 -2.92 -22.58 -12.24 17.01 -1.77 -15.10 7.95 -4.90 -4.18 5.29 -5.71 -3.27 -19.95 -8.06 15.59 -9.23 -14.44 7.59 -4.22 -3.60 5.35 -9.05 -2.93 40.60 -6.10 9.21 -0.90 15.55 4.89 11.74 0.22 4.93 4.05 -1.82 5-Yr. Relative Contributions: Return On Assets (ROA) Sales Growth Cash to Assets Change in AR Turnover Change in Return On Assets (ROA) Inventory to Sales Cash Flow to Interest Expense Retained Earnings to Current Liabilities Current Liabilities to Sales Leverage Size -14.59 N/A 22.75 N/A N/A 17.62 -24.43 -10.16 -0.70 1.14 -8.62 -3.98 -10.38 13.99 7.18 15.76 13.48 21.25 -0.49 7.28 0.70 -5.51 -10.29 -15.85 16.20 -1.32 -14.21 14.97 -5.95 -4.47 4.86 -5.36 -6.53 -9.34 -10.71 15.25 -7.04 -13.96 14.69 -5.27 -3.95 5.05 -8.73 -6.01 21.48 -9.16 10.19 -0.77 16.98 10.70 16.55 0.28 5.26 4.41 -4.22 1-Yr. Relative Sensitivities: Return On Assets (ROA) -12.76 -268.67 -92.82 -34.41 -103.13 Moody’s KMV Sample Reports Page 55 MMAS Sample Customer (MMASSample) RiskCalc for Private Firm (United States) - Version 3.1 Industry Classification: NAICS Code: 315228 Statement Date 6/30/2001 6/30/2002 6/30/2003 6/30/2004 Months Covered 12 12 12 12 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Unqualif'd Accountant KPMG KPMG KPMG KPMG Analyst GJH GJH GJH GJH Stmt Type Annual Annual Annual Annual Prepared: 17:58, 9/22/2005 Amounts Printed in: Thousands SYSTEMREPORTS (3.1.8.0) 6/30/2005 12 Unqualif'd KPMG GJH Annual Sales Growth Cash to Assets Change in AR Turnover Change in Return On Assets (ROA) Inventory to Sales Cash Flow to Interest Expense Retained Earnings to Current Liabilities Current Liabilities to Sales Leverage Size 0.00 -358.58 0.00 0.00 23.18 -76.82 -124.92 87.10 99.14 -17.51 -54.38 -223.80 70.88 -45.24 11.59 -158.99 -159.09 36.61 62.14 -8.60 -1.89 -210.36 -86.42 72.32 19.47 -295.44 -164.10 68.46 71.62 -17.10 38.15 -371.33 -35.12 -39.86 14.47 -293.75 -144.34 58.99 58.85 -10.73 -19.93 -301.65 -70.59 -24.36 10.86 -205.13 -217.71 47.11 92.32 -7.21 5-Yr. Relative Sensitivities: Return On Assets (ROA) Sales Growth Cash to Assets Change in AR Turnover Change in Return On Assets (ROA) Inventory to Sales Cash Flow to Interest Expense Retained Earnings to Current Liabilities Current Liabilities to Sales Leverage Size -5.44 0.00 -346.17 0.00 0.00 40.83 -87.07 -126.00 74.82 86.96 -32.70 -134.36 -76.20 -240.96 56.99 -46.08 23.67 -215.54 -188.02 36.43 63.14 -18.60 -45.33 -2.64 -193.47 -69.03 73.35 39.63 -328.23 -171.16 67.83 72.47 -36.87 -16.95 53.45 -305.39 -28.27 -40.45 31.72 -320.51 -162.05 57.61 58.71 -24.89 -47.79 -26.24 -291.97 -53.33 -23.31 20.81 -253.22 -236.53 44.03 88.13 -14.64 Percentiles: Return On Assets (ROA) Sales Growth Cash to Assets Change in AR Turnover Change in Return On Assets (ROA) Inventory to Sales Cash Flow to Interest Expense Retained Earnings to Current Liabilities Current Liabilities to Sales Leverage Size 77.32 N/A 35.79 N/A N/A 89.30 N/A 59.71 52.08 66.52 46.07 38.08 33.42 42.26 88.36 15.08 92.15 19.06 45.36 77.35 66.43 49.84 57.04 48.44 47.14 23.59 76.17 90.26 50.65 53.80 66.44 58.01 47.59 63.75 66.16 36.33 39.31 66.70 92.03 50.79 53.90 68.01 51.44 49.46 9.11 45.91 30.52 22.37 9.63 94.14 16.89 42.95 76.74 73.10 53.15 Ratios or Levels: Return On Assets (ROA) Sales Growth Cash to Assets Change in AR Turnover Change in Return On Assets (ROA) Inventory to Sales Cash Flow to Interest Expense Retained Earnings to Current Liabilities Current Liabilities to Sales Leverage Size 10.73 2.53 5.46 6.80 -5.92 N/A 0.58 5.69 12.46 4.82 1.70 2.42 3.11 1.75 1.20 N/A 3.13 -1.72 -0.41 -1.87 N/A -8.21 2.93 1.34 -12.72 19.53 22.18 20.32 22.03 24.61 N/A 73.81 431.97 433.99 30.07 108.97 64.92 88.43 88.74 58.94 15.74 25.02 20.09 20.69 24.67 34.57 34.46 25.01 18.33 42.49 417,926.96 490,396.55 445,691.62 482,635.37 569,864.36 When defining percentiles, be aware that observations in the sample population are sorted in order of increasing ratio value. This means that the item's impact on risk relative to its location within a certain percentile depends upon the relationship between the ratio and risk. An item that is in a high percentile for profitability has a positive impact by lowering the probability of default, since more profitable companies have lower risk of default. Conversely, an item in a high percentile in a leverage ratio has a negative impact, since a highly leveraged company has a higher risk of default. Moody’s KMV Sample Reports Page 56 Credit Edge CreditEdge Report - Version 2 MICROSOFT CORP MKMVID: 594918 EDF Type: Annual Trading Date: 9/23/2005 Published Outputs Dates Requested 9/23/2005 6/30/2005 6/30/2004 6/30/2003 6/30/2002 6/30/2001 CreditEdge Statement Date Trading Date 6/30/2005 9/23/2005 3/31/2005 6/30/2005 3/31/2004 6/30/2004 3/31/2003 6/30/2003 3/29/2002 6/30/2002 3/30/2001 6/30/2001 USD UNITED STATES COMPUTER SOFTWARE 7372 USD UNITED STATES COMPUTER SOFTWARE 7372 USD UNITED STATES COMPUTER SOFTWARE 7372 USD UNITED STATES COMPUTER SOFTWARE 7372 USD UNITED STATES COMPUTER SOFTWARE 7372 USD UNITED STATES COMPUTER SOFTWARE 7372 annual 0.02 0.02 0.02 0.02 0.02 annual 0.02 0.02 0.02 0.02 0.02 annual 0.02 0.02 0.02 0.02 0.03 annual 0.05 0.07 0.08 0.09 0.10 annual 0.06 0.08 0.09 0.10 0.11 annual 0.03 0.04 0.05 0.06 0.06 EDF Drivers Default Point (Year 1) Debt Due Year 2 Debt Due Year 3 Debt Due Year 4 Debt Due Year 5 19,788,500.00 0.00 0.00 0.00 0.00 17,520,500.00 0.00 0.00 0.00 0.00 16,690,328.13 0.00 0.00 0.00 0.00 14,496,000.00 0.00 0.00 0.00 0.00 12,931,000.00 0.00 0.00 0.00 0.00 9,740,000.00 0.00 0.00 0.00 0.00 Market Data Market Capitalization Share Price Shares Outstanding Share Equivalents Market Leverage Equity Volatility 0.00 0.00 10,712,706.05 9,265,907.23 0.07 0.21 0.00 0.00 10,804,000.98 10,745,315.43 0.06 0.23 0.00 0.00 10,777,000.00 10,728,973.63 0.05 0.27 0.00 0.00 10,722,000.00 10,816,034.18 0.05 0.35 0.00 0.00 5,415,000.00 5,372,750.49 0.04 0.39 0.00 0.00 5,336,000.00 5,241,057.13 0.02 0.40 Financial Data Short Term Liabilities Long Term Liabilities Total Adjusted Liabilities Deferred Tax Minority Interest Total Liabilities Other Liabilities 16,877,000.00 5,823,000.00 22,700,000.00 0.00 0.00 22,700,000.00 5,823,000.00 16,139,000.00 2,763,000.00 18,902,000.00 0.00 0.00 18,902,000.00 2,763,000.00 15,984,000.00 1,412,654.30 17,396,654.30 1,790,345.34 0.00 19,187,000.00 1,412,654.66 13,161,000.00 2,670,000.00 15,831,000.00 369,000.00 0.00 16,200,000.00 2,670,000.00 11,842,000.00 2,178,000.00 14,020,000.00 59,000.00 0.00 14,079,000.00 2,178,000.00 9,740,000.00 0.00 9,740,000.00 1,775,000.00 0.00 11,515,000.00 0.00 3,427,199.71 0.00 3,457,280.03 0.00 1,724,320.07 0.00 857,759.95 0.00 0.00 0.00 0.00 0.00 Currency Primary Country Primary Industry Primary SIC Prepared: 15:12, 9/26/2005 Amounts Printed in: Thousands SYSTEMREPORTS (3.1.8.0) Yearly EDF EDF Type EDF 1 EDF 2 EDF 3 EDF 4 EDF 5 Common Dividends Preferred Dividends Moody’s KMV Sample Reports Page 57 CreditEdge Report - Version 2 MICROSOFT CORP MKMVID: 594918 EDF Type: Annual Trading Date: 9/23/2005 Published Outputs Dates Requested Prepared: 15:12, 9/26/2005 Amounts Printed in: Thousands SYSTEMREPORTS (3.1.8.0) 9/23/2005 6/30/2005 6/30/2004 6/30/2003 6/30/2002 6/30/2001 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A AA 6/30/2004 N/A N/A AA 6/30/2003 N/A N/A AA 6/30/2002 N/A N/A AA 6/30/2001 Industry Details Industry 1 Industry Code Industry Name Weight N09 BUSINESS SERVICES 4.28 N09 BUSINESS SERVICES 4.72 N09 BUSINESS SERVICES 5.11 N09 BUSINESS SERVICES 0.61 N09 BUSINESS SERVICES 1.41 N09 BUSINESS SERVICES 8.29 Industry 2 Industry Code Industry Name Weight N11 COMPUTER HARDWARE 0.25 N11 COMPUTER HARDWARE 0.20 N11 COMPUTER HARDWARE 0.14 N11 N11 COMPUTER HARDWARE COMPUTER HARDWARE 1.34 1.77 N12 COMPUTER SOFTWARE 62.57 Industry 3 Industry Code Industry Name Weight N12 COMPUTER SOFTWARE 89.77 N12 COMPUTER SOFTWARE 89.54 N12 COMPUTER SOFTWARE 88.75 N12 COMPUTER SOFTWARE 93.71 N12 COMPUTER SOFTWARE 67.43 N57 UNASSIGNED 29.14 Industry 4 Industry Code Industry Name Weight N17 CONSUMER PRODUCTS 5.70 N17 CONSUMER PRODUCTS 5.54 N17 CONSUMER PRODUCTS 6.00 N17 N17 CONSUMER PRODUCTS CONSUMER PRODUCTS 3.77 2.28 N/A N/A N/A Industry 5 Industry Code Industry Name Weight N/A N/A N/A N/A N/A N/A N/A N/A N/A N45 PUBLISHING 0.57 N45 PUBLISHING 0.76 N/A N/A N/A Industry 6 Industry Code Industry Name Weight N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N57 UNASSIGNED 26.36 N/A N/A N/A Agency Ratings Moody's Rating Moody's Rating Date S & P Rating S & P Rating Date Moody’s KMV Sample Reports Page 58 FINANCIAL PACKAGE REPORTS LONG-TERM PROJECTION REPORTS Long-Term Projection Reports are used to project borrower financial statement data into future periods. With Long-Term Projections, the analyst can project annual, fiscal year-to-date, quarterly, or monthly statements. In addition to the sample Long-Term Projection Reports shown in this document, the following reports are also available: 3. Long-Term Projections: Detailed Income Statement – Actual 4. Long-Term Projections: Detailed Balance Sheet – % 5. Long-Term Projections: Detailed Income Statement – % 6. Long-Term Projections: Detailed Comprehensive Income Statement – % 7. Long-Term Projections: Detailed Income Statement – Actual and % 8. Long-Term Projections: Detailed Balance Sheet – Exchange Rate 9. Long-Term Projections: Detailed Balance Sheet – Trend 10. Long-Term Projections: Detailed Reconciliations 11. Long-Term Projections: Detailed FAS 95 Stmt of Cash Flows (Direct) 12. Long-Term Projections: Detailed Ratios 13. Long-Term Projections: Summary Balance Sheet – Actual 14. Long-Term Projections: Summary Income Statement – Actual 15. Long-Term Projections: Summary Comprehensive Income Statement – Actual 16. Long-Term Projections: Summary Balance Sheet – % 17. Long-Term Projections: Summary Income Statement – % 18. Long-Term Projections: Summary Comprehensive Income Statement – % 19. Long-Term Projections: Summary Balance Sheet – Actual and % 20. Long-Term Projections: Summary Comprehensive Income Statement – Actual and % 21. Long-Term Projections: Summary Reconciliations 22. Long-Term Projections: Summary UCA Cash Flow 23. Long-Term Projections: Summary FAS 95 Stmt of Cash Flows (Indirect) 24. Long-Term Projections: Summary Cash Flow Management 25. Long-Term Projections: Executive Financial Statement – Actual 26. Long-Term Projections: Executive Financial Statement – % 27. Long-Term Projections: Executive Reconciliations & Ratios 28. Long-Term Projections: Executive FAS 95 Stmt of Cash Flows (Indirect) 29. Long-Term Projections: Notes to Financial Statements 30. Long-Term Projections: Credit Compliance Report 31. Long-Term Projections: Asset Based Lending Report 32. Long-Term Projections: Balance Sheet Account Assumptions 33. Long-Term Projections: Income Statement Account Assumptions 34. Long-Term Projections: Quick Projection Variable Moody’s KMV Sample Reports Page 59 Long-Term Projections: Detailed Balance Sheet – Actual MMAS Sample Customer (MMASSample) Detailed Balance Sheet - Actual Industry Classification: NAICS Code: 315228 Projection Title: Long term Statement Date 6/30/2003 6/30/2004 6/30/2005 6/30/2006 6/30/2007 Months Covered 12 12 12 12 12 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Projection Projection Accountant KPMG KPMG KPMG Analyst GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual Source Currency: USD United States Dollars CURRENT ASSETS Cash Accts/Notes Rec-Trade Bad Debt Reserve (-) Total Accts/Rec-Net Inventory Prepaid Expenses TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property Plant & Equipment Furniture, Fixtures & Vehicles Gross Fixed Assets Accumulated Deprec (-) Total Fixed Assets - Net Cash Value Life Insurance Other Assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Required Borrowings Note Payable - Bank CPLTD-Bank Accounts Payable-Trade Accrued Expenses Income Taxes Payable TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Long Term Debt TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET WORTH Common Stock Retained Earnings TOTAL NET WORTH TOTAL LIABILITIES & NET WORTH 90 1,842 86 1,756 2,610 119 4,575 75 1,698 90 1,608 3,056 131 4,870 129 2,027 93 1,934 3,122 152 5,337 144 2,203 101 2,101 3,453 177 5,875 ¯ ¯ ¯ ¯ ¯ 1,922 356 2,278 1,675 603 18 66 687 4,636 2,011 421 2,432 1,912 520 20 20 560 5,135 2,957 568 3,525 2,205 1,320 22 22 1,364 6,234 3,471 678 4,149 2,591 1,558 26 26 1,609 6,947 3,993 780 4,773 3,039 1,734 30 30 1,793 7,668 ¯ ¯ ¯ ¯ ¯ 1,148 142 583 214 30 2,117 1,134 115 980 222 2,451 1,475 169 1,139 281 3,064 1,265 1,475 169 1,071 305 4,285 2,682 1,475 169 1,184 332 5,842 ¯ ¯ ¯ ¯ ¯ 630 630 2,747 492 492 2,943 1,347 1,347 4,411 1,347 1,347 5,632 1,347 1,347 7,189 ¯ ¯ ¯ ¯ ¯ ¯ ¯ 17 1,872 1,889 4,636 ¯ 17 2,175 2,192 5,135 ¯ 17 1,806 1,823 6,234 ¯ 17 1,298 1,315 6,947 ¯ 17 462 479 7,668 1,832 1,889 2,124 2,192 1,806 1,823 1,052 1,315 33 479 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Working Capital Tang Net Worth-Actual ¯ Moody’s KMV Sample Reports Target Currency: USD United States Dollars 144 1,669 64 1,605 2,141 59 3,949 ¯ Prepared: 18:12, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Page 60 Long-Term Projections: Detailed Comprehensive Income Statement – Actual MMAS Sample Customer (MMASSample) Detailed Comprehensive Income Statement - Actual Industry Classification: NAICS Code: 315228 Projection Title: Long term Statement Date 6/30/2003 6/30/2004 6/30/2005 6/30/2006 6/30/2007 Months Covered 12 12 12 12 12 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Projection Projection Accountant KPMG KPMG KPMG Analyst GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual Source Currency: USD United States Dollars Net Sales - Manufacturing Division Net Sales - Catalog Division NET SALES/REVENUE Target Currency: USD United States Dollars 9,477 1,058 10,535 9,564 2,284 11,848 9,317 3,102 12,419 10,122 3,370 13,492 10,997 3,661 14,658 7,739 239 7,978 2,557 8,552 224 8,776 3,072 9,468 273 9,741 2,678 10,354 361 10,714 2,778 11,452 419 11,871 2,786 2,114 13 2,127 430 2,454 17 2,471 601 2,755 21 2,776 (98) 3,117 25 3,142 (364) 3,540 29 3,569 (783) 147 147 47 (100) 330 153 153 32 13 (108) 493 306 306 35 (271) (369) 157 18 143 318 38 (280) (644) 157 18 143 318 41 (277) (1,059) 77 253 ¯ 144 349 ¯ (369) ¯ (113) (531) ¯ (186) (874) EBIT EBITDA EBIDA 477 729 652 646 887 743 (63) 231 231 (326) 60 172 (741) (293) (107) COMPREHENSIVE INCOME 253 349 (369) (531) (874) - (46) - 23 38 ¯ ¯ ¯ ¯ ¯ Cost of Goods Sold Cost of Goods Sold - Depreciation TOTAL COST OF SALES/REV GROSS PROFIT SG & A Expense Depreciation TOTAL OPERATING EXPENSE NET OPERATING PROFIT Interest Expense (-) Int. Exp. ST Loans Payable-Bank Int. Exp. CPLTD-Bank Int. Exp. Long Term Debt-Bank Total Interest Expense Other Income Gain(Loss) on Asset Sale TOTAL OTHER INCOME(EXP) PROFIT BEFORE TAXES Current Income Tax NET PROFIT ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Dividends - Common ¯ Moody’s KMV Sample Reports Prepared: 18:12, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Page 61 Long-Term Projections: Detailed Balance Sheet – Actual and % MMAS Sample Customer (MMASSample) Detailed Balance Sheet - Actual and % Industry Classification: NAICS Code: 315228 Projection Title: Long term Statement Date 6/30/2003 Months Covered 12 Audit Mthd Unqualif'd Accountant KPMG Analyst GJH Stmt Type Annual Source Currency: USD United States Dollars CURRENT ASSETS Cash Accts/Notes Rec-Trade Bad Debt Reserve (-) Total Accts/Rec-Net Inventory Prepaid Expenses TOTAL CURRENT ASSETS NON-CURRENT ASSETS Property Plant & Equipment Furniture, Fixtures & Vehicles Gross Fixed Assets Accumulated Deprec (-) Total Fixed Assets - Net Cash Value Life Insurance Other Assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS CURRENT LIABILITIES Required Borrowings Note Payable - Bank CPLTD-Bank Accounts Payable-Trade Accrued Expenses Income Taxes Payable TOTAL CURRENT LIABILITIES NON-CURRENT LIABILITIES Long Term Debt TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES NET WORTH Common Stock Retained Earnings TOTAL NET WORTH TOTAL LIABILITIES & NET WORTH ¯ ¯ Prepared: 18:12, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 6/30/2004 12 Unqualif'd KPMG GJH Annual 6/30/2005 12 Unqualif'd KPMG GJH Annual 6/30/2006 12 Projection 6/30/2007 12 Projection Annual Annual Target Currency: USD United States Dollars 144 1,669 64 1,605 2,141 59 3,949 3.1 36.0 1.4 34.6 46.2 1.3 85.2 90 1,842 86 1,756 2,610 119 4,575 1.8 35.9 1.7 34.2 50.8 2.3 89.1 75 1,698 90 1,608 3,056 131 4,870 1.2 27.2 1.4 25.8 49.0 2.1 78.1 129 2,027 93 1,934 3,122 152 5,337 1.9 29.2 1.3 27.8 44.9 2.2 76.8 144 2,203 101 2,101 3,453 177 5,875 1.9 28.7 1.3 27.4 45.0 2.3 76.6 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 1,922 41.5 2,011 39.2 2,957 47.4 3,471 50.0 3,993 52.1 356 7.7 421 8.2 568 9.1 678 9.8 780 10.2 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 2,278 1,675 603 18 66 687 49.1 36.1 13.0 0.4 1.4 14.8 2,432 1,912 520 20 20 560 47.4 37.2 10.1 0.4 0.4 10.9 3,525 2,205 1,320 22 22 1,364 56.5 35.4 21.2 0.4 0.4 21.9 4,149 2,591 1,558 26 26 1,609 59.7 37.3 22.4 0.4 0.4 23.2 4,773 3,039 1,734 30 30 1,793 62.2 39.6 22.6 0.4 0.4 23.4 4,636 100.0 5,135 100.0 6,234 100.0 6,947 100.0 7,668 100.0 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 1,148 142 583 214 30 2,117 24.8 3.1 12.6 4.6 0.6 45.7 1,134 115 980 222 2,451 22.1 2.2 19.1 4.3 47.7 1,475 169 1,139 281 3,064 23.7 2.7 18.3 4.5 49.1 1,265 1,475 169 1,071 305 4,285 18.2 21.2 2.4 15.4 4.4 61.7 2,682 1,475 169 1,184 332 5,842 35.0 19.2 2.2 15.4 4.3 76.2 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 630 630 ¯ 13.6 13.6 ¯ 492 492 ¯ 9.6 9.6 ¯ 1,347 1,347 ¯ 21.6 21.6 ¯ 1,347 1,347 ¯ 19.4 19.4 ¯ 1,347 1,347 ¯ 17.6 17.6 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 2,747 59.3 2,943 57.3 4,411 70.8 5,632 81.1 7,189 93.7 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 17 1,872 1,889 4,636 ¯ 0.4 40.4 40.7 100.0 ¯ 17 2,175 2,192 5,135 ¯ 0.3 42.4 42.7 100.0 ¯ 17 1,806 1,823 6,234 ¯ 0.3 29.0 29.2 100.0 ¯ 17 1,298 1,315 6,947 ¯ 0.2 18.7 18.9 100.0 ¯ 17 462 479 7,668 ¯ 0.2 6.0 6.3 100.0 1,832 1,889 39.5 40.7 2,124 2,192 41.4 42.7 1,806 1,823 29.0 29.2 1,052 1,315 15.1 18.9 33 479 0.4 6.3 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Working Capital Tang Net Worth-Actual ¯ Moody’s KMV Sample Reports ¯ Page 62 Long-Term Projections: Detailed Comprehensive Income Statement – Actual and % MMAS Sample Customer (MMASSample) Detailed Comprehensive Income Statement - Actual and % Industry Classification: NAICS Code: 315228 Projection Title: Long term Statement Date 6/30/2003 6/30/2004 Months Covered 12 12 Audit Mthd Unqualif'd Unqualif'd Accountant KPMG KPMG Analyst GJH GJH Stmt Type Annual Annual Source Currency: USD United States Dollars Net Sales - Manufacturing Division Net Sales - Catalog Division NET SALES/REVENUE Prepared: 18:12, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 6/30/2005 12 Unqualif'd KPMG GJH Annual 6/30/2006 12 Projection 6/30/2007 12 Projection Annual Annual Target Currency: USD United States Dollars 9,477 1,058 10,535 90.0 10.0 100.0 9,564 2,284 11,848 80.7 19.3 100.0 9,317 3,102 12,419 75.0 25.0 100.0 10,122 3,370 13,492 75.0 25.0 100.0 10,997 3,661 14,658 75.0 25.0 100.0 7,739 239 7,978 2,557 73.5 2.3 75.7 24.3 8,552 224 8,776 3,072 72.2 1.9 74.1 25.9 9,468 273 9,741 2,678 76.2 2.2 78.4 21.6 10,354 361 10,714 2,778 76.7 2.7 79.4 20.6 11,452 419 11,871 2,786 78.1 2.9 81.0 19.0 2,114 13 2,127 430 20.1 0.1 20.2 4.1 2,454 17 2,471 601 20.7 0.1 20.9 5.1 2,755 21 2,776 (98) 22.2 0.2 22.4 (0.8) 3,117 25 3,142 (364) 23.1 0.2 23.3 (2.7) 3,540 29 3,569 (783) 24.2 0.2 24.3 (5.3) 147 147 47 (100) 330 1.4 1.4 0.4 (0.9) 3.1 153 153 32 13 (108) 493 1.3 1.3 0.3 0.1 (0.9) 4.2 306 306 35 (271) (369) 2.5 2.5 0.3 (2.2) (3.0) 157 18 143 318 38 (280) (644) 1.2 0.1 1.1 2.4 0.3 (2.1) (4.8) 157 18 143 318 41 (277) (1,059) 1.1 0.1 1.0 2.2 0.3 (1.9) (7.2) 77 253 ¯ 0.7 2.4 ¯ 144 349 ¯ 1.2 2.9 ¯ (369) ¯ (3.0) ¯ (113) (531) ¯ (0.8) (3.9) ¯ (186) (874) ¯ (1.3) (6.0) EBIT EBITDA EBIDA 477 729 652 4.5 6.9 6.2 646 887 743 5.5 7.5 6.3 (63) 231 231 (0.5) 1.9 1.9 (326) 60 172 (2.4) 0.4 1.3 (741) (293) (107) (5.1) (2.0) (0.7) COMPREHENSIVE INCOME 253 2.4 349 2.9 (369) (3.0) (531) (3.9) (874) (6.0) Cost of Goods Sold Cost of Goods Sold - Depreciation TOTAL COST OF SALES/REV GROSS PROFIT SG & A Expense Depreciation TOTAL OPERATING EXPENSE NET OPERATING PROFIT Interest Expense (-) Int. Exp. ST Loans Payable-Bank Int. Exp. CPLTD-Bank Int. Exp. Long Term Debt-Bank Total Interest Expense Other Income Gain(Loss) on Asset Sale TOTAL OTHER INCOME(EXP) PROFIT BEFORE TAXES Current Income Tax NET PROFIT ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Dividends - Common ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Moody’s KMV Sample Reports ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ (46) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 23 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 38 ¯ ¯ ¯ Page 63 Long-Term Projections: Detailed Income Statement – Exchange Rate MMAS Sample Customer (MMASSample) Detailed Income Statement - Exchange Rate Industry Classification: NAICS Code: 315228 Projection Title: Long term Statement Date 6/30/2003 Months Covered 12 Audit Mthd Unqualif'd Accountant KPMG Analyst GJH Stmt Type Annual Currency Target Source Currency: USD United States Dollars Exchange Rate Net Sales - Manufacturing Division Net Sales - Catalog Division NET SALES/REVENUE Cost of Goods Sold Cost of Goods Sold - Depreciation TOTAL COST OF SALES/REV GROSS PROFIT SG & A Expense Depreciation TOTAL OPERATING EXPENSE NET OPERATING PROFIT Interest Expense (-) Int. Exp. ST Loans Payable-Bank Int. Exp. CPLTD-Bank Int. Exp. Long Term Debt-Bank Total Interest Expense Other Income Gain(Loss) on Asset Sale TOTAL OTHER INCOME(EXP) PROFIT BEFORE TAXES Current Income Tax NET PROFIT 6/30/2004 12 Unqualif'd KPMG GJH Annual Source Target ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Dividends - Common ¯ 6/30/2005 12 Unqualif'd KPMG GJH Annual Source Target 6/30/2006 12 Projection Source Annual Target 6/30/2007 12 Projection Source Annual Target Source Target Currency: USD United States Dollars 1.00000 EBIT EBITDA EBIDA Moody’s KMV Sample Reports Prepared: 18:12, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 1.00000 1.00000 1.00000 1.00000 9,477 1,058 10,535 9,477 1,058 10,535 9,564 2,284 11,848 9,564 2,284 11,848 9,317 3,102 12,419 9,317 3,102 12,419 10,122 3,370 13,492 10,122 3,370 13,492 10,997 3,661 14,658 10,997 3,661 14,658 7,739 239 7,978 2,557 7,739 239 7,978 2,557 8,552 224 8,776 3,072 8,552 224 8,776 3,072 9,468 273 9,741 2,678 9,468 273 9,741 2,678 10,354 361 10,714 2,778 10,354 361 10,714 2,778 11,452 419 11,871 2,786 11,452 419 11,871 2,786 2,114 13 2,127 430 2,114 13 2,127 430 2,454 17 2,471 601 2,454 17 2,471 601 2,755 21 2,776 (98) 2,755 21 2,776 (98) 3,117 25 3,142 (364) 3,117 25 3,142 (364) 3,540 29 3,569 (783) 3,540 29 3,569 (783) 147 147 47 (100) 330 147 147 47 (100) 330 153 153 32 13 (108) 493 153 153 32 13 (108) 493 306 306 35 (271) (369) 306 306 35 (271) (369) 157 18 143 318 38 (280) (644) 157 18 143 318 38 (280) (644) 157 18 143 318 41 (277) (1,059) 157 18 143 318 41 (277) (1,059) 77 253 ¯ 77 253 ¯ 144 349 ¯ 144 349 ¯ (369) ¯ (369) ¯ (113) (531) ¯ (113) (531) ¯ (186) (874) ¯ (186) (874) 477 729 652 477 729 652 646 887 743 646 887 743 (63) 231 231 (63) 231 231 (326) 60 172 (326) 60 172 (741) (293) (107) (741) (293) (107) - - (46) (46) - - 23 23 38 38 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Page 64 Long-Term Projections: Detailed Income Statement – Trend MMAS Sample Customer (MMASSample) Detailed Income Statement - Trend Industry Classification: NAICS Code: 315228 Projection Title: Long term Statement Date 6/30/2003 Months Covered 12 Audit Mthd Unqualif'd Accountant KPMG Analyst GJH Stmt Type Annual Source Currency: USD United States Dollars Net Sales - Manufacturing Division Net Sales - Catalog Division NET SALES/REVENUE Cost of Goods Sold Cost of Goods Sold - Depreciation TOTAL COST OF SALES/REV GROSS PROFIT SG & A Expense Depreciation TOTAL OPERATING EXPENSE NET OPERATING PROFIT Interest Expense (-) Int. Exp. ST Loans Payable-Bank Int. Exp. CPLTD-Bank Int. Exp. Long Term Debt-Bank Total Interest Expense Other Income Gain(Loss) on Asset Sale TOTAL OTHER INCOME(EXP) PROFIT BEFORE TAXES Current Income Tax NET PROFIT 6/30/2004 12 Unqualif'd KPMG Trend GJH % Chg Annual ¯ ¯ 7,739 239 7,978 2,557 ¯ ¯ ¯ ¯ ¯ ¯ 2,114 13 2,127 430 ¯ ¯ ¯ ¯ ¯ ¯ 147 147 47 (100) 330 ¯ ¯ ¯ ¯ ¯ 6/30/2007 12 Projection Trend % Chg Annual Trend % Chg Annual Trend % Chg ¯ ¯ ¯ ¯ 77 253 ¯ 0.9 115.9 12.5 9,317 3,102 12,419 (2.6) 35.8 4.8 10,122 3,370 13,492 8.6 8.6 8.6 10,997 3,661 14,658 8.6 8.6 8.6 8,552 224 8,776 3,072 10.5 (6.3) 10.0 20.1 9,468 273 9,741 2,678 10.7 21.9 11.0 (12.8) 10,354 361 10,714 2,778 9.4 32.1 10.0 3.7 11,452 419 11,871 2,786 10.6 16.3 10.8 0.3 2,454 17 2,471 601 16.1 30.8 16.2 39.8 2,755 21 2,776 (98) 12.3 23.5 12.3 (116.3) 3,117 25 3,142 (364) 13.1 19.0 13.2 271.5 3,540 29 3,569 (783) 13.6 16.3 13.6 115.0 153 153 32 13 (108) 493 4.1 100.0 (100.0) 4.1 (31.9) 100.0 9.4 (100.0) 150.9 (174.8) 157 18 143 318 38 (280) (644) 157 18 143 318 41 (277) (1,059) ¯ ¯ ¯ (1.2) 64.4 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 8.0 49.4 144 349 87.0 37.9 (369) (100.0) (205.7) (113) (531) ¯ 44.0 (186) (874) 64.4 64.4 646 887 743 35.4 21.7 14.0 (63) 231 231 (109.8) (74.0) (68.9) (326) 60 172 417.5 (74.2) (25.4) (741) (293) (107) 127.4 (591.3) (162.3) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 306 306 35 (271) (369) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ (46) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ - ¯ ¯ ¯ 477 729 652 ¯ 6/30/2006 12 Projection 9,564 2,284 11,848 ¯ ¯ ¯ Dividends - Common 6/30/2005 12 Unqualif'd KPMG Trend GJH % Chg Annual Target Currency: USD United States Dollars 9,477 1,058 10,535 ¯ EBIT EBITDA EBIDA Moody’s KMV Sample Reports Prepared: 18:12, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) ¯ 4.0 8.6 ¯ ¯ ¯ 3.4 74.6 ¯ ¯ (100.0) ¯ ¯ ¯ 23 ¯ 8.6 ¯ ¯ ¯ 38 ¯ ¯ 64.4 ¯ ¯ Page 65 Long-Term Projections: Detailed UCA Cash Flow MMAS Sample Customer (MMASSample) Detailed UCA Cash Flow Industry Classification: NAICS Code: 315228 Projection Title: Long term Statement Date 6/30/2003 6/30/2004 6/30/2005 6/30/2006 6/30/2007 Months Covered 12 12 12 12 12 Analyst GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual Net Sales - Manufacturing Division Net Sales - Catalog Division Chg in Accts/Notes Rec-Trade Chg in Bad Debt Reserve (-) Cash Collected From Sales Cost of Goods Sold Chg in Inventory Chg in Accounts Payable-Trade Cash Paid To Suppliers CASH FROM TRADING ACTIVITIES SG & A Expense Chg in Prepaid Expenses Chg in Accrued Expenses Cash Paid for Operating Costs CASH AFTER OPERATIONS Other Income Current Income Tax Chg in Income Taxes Payable Other Income(Exp) & Taxes Paid NET CASH AFTER OPERATIONS ¯ CPLTD-Bank Current Portion Long Term Debt CASH AFTER DEBT AMORT. Chg in Property Plant & Equipment Chg in Furniture, Fixtures & Vehicles Chg in Accumulated Deprec (-) Cost of Goods Sold - Depreciation Depreciation Gain(Loss) on Asset Sale Chg in Net Fixed Assets Chg in Cash Value Life Insurance Chg in Other Assets Chg in Investments 9,317 3,102 144 4 12,567 10,122 3,370 (329) 3 13,166 10,997 3,661 (175) 8 14,491 (8,552) (469) 397 (8,624) (9,468) (446) 159 (9,755) (10,354) (66) (68) (10,488) (11,452) (331) 114 (11,670) ¯ ¯ ¯ ¯ 3,073 2,812 2,678 2,821 (2,454) (60) 8 (2,506) 567 (2,755) (12) 59 (2,708) 104 (3,117) (21) 24 (3,113) (435) (3,540) (24) 26 (3,538) (717) 32 (144) (30) (142) 425 35 35 139 38 113 151 (285) 41 186 227 (490) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Interest Expense (-) Int. Exp. ST Loans Payable-Bank Int. Exp. CPLTD-Bank Int. Exp. Long Term Debt-Bank Dividends - Common Cash Paid for Dividends & Interest NET CASH INCOME 9,564 2,284 (173) 22 11,697 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ (157) (18) (143) 38 (280) (770) (142) (142) 84 (115) (115) (282) (169) (169) (748) (169) (169) (939) (89) (65) 237 (224) (17) 13 (145) (946) (147) 293 (273) (21) (1,094) (514) (110) 386 (361) (25) (624) (522) (102) 448 (419) (29) (624) (2) 46 44 (2) (2) (4) (4) (4) (7) (4) (4) (8) ¯ ¯ ¯ ¯ (157) (18) (143) 23 (295) (579) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ (306) (306) (167) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ (153) (46) (199) 226 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Cash Paid for Plant and Investments (101) (1,098) (631) (632) FINANCING SURPLUS (REQMNTS) (17) (1,380) (1,380) (1,571) Chg in Required Borrowings Chg in Note Payable - Bank Chg in Long Term Debt Total External Financing CASH AFTER FINANCING (14) (23) (37) (54) 341 1,024 1,365 (15) 1,265 169 1,434 54 1,417 169 1,586 15 144 90 ¯ 90 75 ¯ 75 129 ¯ 129 144 ¯ ¯ ¯ ¯ Add: Cash ENDING CASH & EQUIVALENTS ¯ ¯ ¯ ¯ Moody’s KMV Sample Reports ¯ ¯ ¯ ¯ ¯ ¯ ¯ Prepared: 18:12, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) ¯ ¯ ¯ Page 66 Long-Term Projections: Detailed FAS 95 Stmt of Cash Flows (Indirect) MMAS Sample Customer (MMASSample) Detailed FAS 95 Stmt of Cash Flows (Indirect) Industry Classification: NAICS Code: 315228 Projection Title: Long term Statement Date 6/30/2003 6/30/2004 6/30/2005 6/30/2006 6/30/2007 Months Covered 12 12 12 12 12 Analyst GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual CASH FLOWS FROM OPERATING ACTIVITIES: Net Income Reconciling Items Cost of Goods Sold - Depreciation Depreciation Gain(Loss) on Asset Sale Chg in Accts/Notes Rec-Trade Chg in Bad Debt Reserve (-) Chg in Inventory Chg in Prepaid Expenses Chg in Accounts Payable-Trade Chg in Accrued Expenses Chg in Income Taxes Payable Total Adjustments NET CASH PROVIDED BY OPERATIONS ¯ ¯ CASH FLOWS FROM INVESTING ACTIVITIES: Chg in Property Plant & Equipment Chg in Furniture, Fixtures & Vehicles Chg in Accumulated Deprec (-) Cost of Goods Sold - Depreciation Depreciation Gain(Loss) on Asset Sale Chg in Net Fixed Assets ¯ Chg in Cash Value Life Insurance Chg in Other Assets Chg in Investments (369) (531) (874) 224 17 (13) (173) 22 (469) (60) 397 8 (30) (77) 273 21 144 4 (446) (12) 159 59 202 361 25 (329) 3 (66) (21) (68) 24 (71) 419 29 (175) 8 (331) (24) 114 26 66 ¯ ¯ ¯ ¯ 272 (167) (603) (808) ¯ ¯ ¯ ¯ (89) (65) 237 (224) (17) 13 (145) (946) (147) 293 (273) (21) (1,094) (514) (110) 386 (361) (25) (624) (522) (102) 448 (419) (29) (624) (2) 46 44 (2) (2) (4) (4) (4) (7) (4) (4) (8) ¯ ¯ ¯ 349 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ NET CASH USED IN INVESTING (101) (1,098) (631) (632) CASH FLOWS FROM FINANCING ACTIVITIES: Chg in Required Borrowings Chg in Note Payable - Bank Chg in CPLTD-Bank Chg in Long Term Debt Net Chg in Borrowings Dividends - Common NET CASH PROV BY FINANCING (14) (27) (138) (179) (46) (225) 341 54 855 1,250 1,250 1,265 1,265 23 1,288 1,417 1,417 38 1,455 ¯ ¯ ¯ CHANGE IN CASH & EQUIV. Add: Cash CASH AND EQUIVALENTS AT EOP ¯ Moody’s KMV Sample Reports ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Prepared: 18:12, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) ¯ ¯ ¯ ¯ ¯ ¯ (54) (15) 54 15 144 90 ¯ 90 75 ¯ 75 129 ¯ 129 144 ¯ ¯ ¯ ¯ ¯ Page 67 Long-Term Projections: Cash Flow Management MMAS Sample Customer (MMASSample) Cash Flow Management Industry Classification: NAICS Code: 315228 Projection Title: Long term Statement Date 6/30/2003 6/30/2004 6/30/2005 6/30/2006 6/30/2007 Months Covered 12 12 12 12 12 Stmt Type Annual Annual Annual Annual Annual CASH FLOW DRIVERS CASH FLOW DRIVERS Net Sales Growth 12.46 4.82 Gross Margin (plus Depr) % 26.54 27.82 23.76 Operating Expense (excl Depr) % 20.07 20.71 22.18 Accounts Receivable Days 55.61 54.10 47.26 Inventory Days on Hand (excl Depr) 100.98 111.39 117.81 Accounts Payable Days (excl Depr) 27.50 41.83 43.91 OTHER FACTORS Other Operating Assets 59 119 131 Accrued Expenses Days 36.95 33.02 37.23 Other Current Liabilities CASH MARGIN MANAGEMENT SUMMARY GROSS PROFIT: BEGINNING GROSS PROFIT 2,796 3,296 Gross Profit Management 152 (504) Gross Profit Growth 348 159 ENDING GROSS PROFIT (PLUS 3,296 2,951 DEPR) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 8.64 23.26 23.10 52.32 110.06 37.75 8.64 21.87 24.15 52.32 110.06 37.75 152 35.75 - 177 34.20 - ¯ ¯ ¯ ¯ ¯ ¯ 2,951 (68) 255 3,138 3,138 (204) 271 3,206 (2,454) (183) (118) (2,755) (2,755) (124) (238) (3,117) (3,117) (154) (269) (3,540) CASH OPERATING PROFIT 842 196 TRADING ACCOUNT MANAGEMENT SUMMARY CASH IMPACT OF MANAGEMENT: Accounts Receivable 49 233 Inventory (244) (166) Accounts Payable 336 54 Total Management - Trading Acct 141 120 Other Operating Assets (53) (6) Accruals (26) 32 Other Current Liabilities Total Management - Other Factors (79) 26 TOTAL CASH IMPACT OF MGMT 62 146 22 (334) OPERATING EXPENSES: BEGINNING OPERATING EXPENSE Operating Expense Management Operating Expense Growth ENDING OPER EXP (LESS DEPR) (2,114) (77) (263) (2,454) ¯ ¯ ¯ ¯ ¯ CASH IMPACT OF GROWTH: Accounts Receivable Inventory Accounts Payable Total Growth - Trading Accounts Other Operating Assets Accruals Other Current Liabilities Total Growth - Other Factors TOTAL CASH IMPACT OF SALES GROWTH TOTAL TRADING ACCOUNT AND OTHER FACTOR CHG CASH AFTER OPERATIONS ¯ Moody’s KMV Sample Reports ¯ ¯ ¯ ¯ Prepared: 18:12, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) ¯ ¯ ¯ ¯ (187) 220 (175) (142) (10) (13) (22) (164) (11) (15) (26) (26) (200) (225) 61 (364) (7) 34 27 (85) (280) 105 (259) (6) 27 21 (139) (286) 107 (318) (11) 37 26 (167) (331) 114 (385) (13) 41 28 (337) (238) (293) (356) (275) (92) (457) (383) 567 104 (435) (717) ¯ ¯ ¯ ¯ Page 68 Long-Term Projections: Summary Income Statement – Actual and % MMAS Sample Customer (MMASSample) Summary Income Statement - Actual and % Industry Classification: NAICS Code: 315228 Projection Title: Long term Statement Date 6/30/2003 Months Covered 12 Audit Mthd Unqualif'd Accountant KPMG Analyst GJH Stmt Type Annual Source Currency: USD United States Dollars Sales/Revenues Prepared: 18:12, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 6/30/2004 12 Unqualif'd KPMG GJH Annual 6/30/2005 12 Unqualif'd KPMG GJH Annual 6/30/2006 12 Projection 6/30/2007 12 Projection Annual Annual Target Currency: USD United States Dollars 10,535 100.0 11,848 100.0 12,419 100.0 13,492 100.0 14,658 100.0 7,739 239 7,978 2,557 73.5 2.3 75.7 24.3 8,552 224 8,776 3,072 72.2 1.9 74.1 25.9 9,468 273 9,741 2,678 76.2 2.2 78.4 21.6 10,354 361 10,714 2,778 76.7 2.7 79.4 20.6 11,452 419 11,871 2,786 78.1 2.9 81.0 19.0 2,114 13 2,127 430 20.1 0.1 20.2 4.1 2,454 17 2,471 601 20.7 0.1 20.9 5.1 2,755 21 2,776 (98) 22.2 0.2 22.4 (0.8) 3,117 25 3,142 (364) 23.1 0.2 23.3 (2.7) 3,540 29 3,569 (783) 24.2 0.2 24.3 (5.3) (147) 47 (100) 330 (1.4) 0.4 (0.9) 3.1 (153) 32 13 (108) 493 (1.3) 0.3 0.1 (0.9) 4.2 (306) 35 (271) (369) (2.5) 0.3 (2.2) (3.0) (318) 38 (280) (644) (2.4) 0.3 (2.1) (4.8) (318) 41 (277) (1,059) (2.2) 0.3 (1.9) (7.2) Income Taxes NET PROFIT 77 253 0.7 2.4 144 349 1.2 2.9 (369) (3.0) (113) (531) (0.8) (3.9) (186) (874) (1.3) (6.0) EBIT EBITDA EBIDA 477 729 652 4.5 6.9 6.2 646 887 743 5.5 7.5 6.3 (63) 231 231 (0.5) 1.9 1.9 (326) 60 172 (2.4) 0.4 1.3 (741) (293) (107) (5.1) (2.0) (0.7) Cost of Sales/Revenues Cost of Sales - Depreciation TOTAL COST OF SALES/REV GROSS PROFIT S,G, & A Expense Depreciation TOTAL OPERATING EXP(INC) NET OPERATING PROFIT Interest Income(Expense) Other Income(Expense) Gain(Loss) on Sale of Assets TOTAL OTHER INCOME(EXP) PROFIT BEFORE TAXES ¯ ¯ ¯ ¯ ¯ ¯ Cash Dividends & Withdrawals ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Moody’s KMV Sample Reports ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ (46) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 23 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 38 ¯ ¯ ¯ Page 69 Long-Term Projections: Summary FAS 95 Stmt of Cash Flows (Direct) MMAS Sample Customer (MMASSample) Summary FAS 95 Stmt of Cash Flows (Direct) Industry Classification: NAICS Code: 315228 Projection Title: Long term Statement Date 6/30/2003 6/30/2004 6/30/2005 6/30/2006 6/30/2007 Months Covered 12 12 12 12 12 Analyst GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual CASH FLOWS FROM OPERATING ACTIVITIES: Net Sales Chg in Net Receivables CASH RECEIVED FROM CUSTOMERS Cost of Sales/Revenues Chg in Inventories Chg in Accts Payable-Trade & Othr Operating Expenses Chg in Prepaids/Deferreds Chg in Accruals CASH PAID TO SUPPLIERS AND EMPLOYEES INTEREST PAID INCOME TAXES PAID INTEREST & DIVIDENDS RECEIVED MISC CASH RECEIVED(PAID) NET CASH PROV BY OPERATIONS 11,848 (151) 11,697 (8,552) (469) 397 (2,454) (60) 8 12,419 148 12,567 (9,468) (446) 159 (2,755) (12) 59 13,492 (326) 13,166 (10,354) (66) (68) (3,117) (21) 24 14,658 (167) 14,491 (11,452) (331) 114 (3,540) (24) 26 ¯ ¯ ¯ ¯ (11,130) (153) (174) 32 272 (12,463) (306) 35 (167) (13,601) (318) 113 38 (603) (15,208) (318) 186 41 (808) CASH FLOWS FROM INVESTING ACTIVITIES: Chg in Net Fixed Assets Chg in Long Term Investments NET CASH USED IN INVESTING (145) 44 (101) (1,094) (4) (1,098) (624) (7) (631) (624) (8) (632) CASH FLOWS FROM FINANCING ACTIVITIES: Chg in ST Loans Chg in CP-Long Term Debt Chg in Long Term Debt Net Chg in Borrowings Cash Dividends Paid NET CASH PROV BY FINANCING CHANGE IN CASH & EQUIVALENTS ADD:CASH AND EQUIVALENTS AT BOP CASH AND EQUIVALENTS AT EOP (14) (27) (138) (179) (46) (225) (54) 144 90 341 54 855 1,250 1,250 (15) 90 75 1,265 1,265 23 1,288 54 75 129 1,417 1,417 38 1,455 15 129 144 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Moody’s KMV Sample Reports ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Prepared: 18:12, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) ¯ ¯ ¯ ¯ ¯ ¯ ¯ Page 70 Long-Term Projections: Summary Ratios MMAS Sample Customer (MMASSample) Summary Ratios Industry Classification: NAICS Code: 315228 Projection Title: Long term Statement Date 6/30/2003 6/30/2004 6/30/2005 6/30/2006 6/30/2007 Months Covered 12 12 12 12 12 Analyst GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual LIQUIDITY Working Capital Quick Ratio Current Ratio Net Sales/Working Capital 1,832 0.83 1.87 5.75 2,124 0.75 1.87 5.58 1,806 0.55 1.59 6.88 1,052 0.48 1.25 12.82 33 0.38 1.01 444.61 LEVERAGE Net Worth-Actual Tang Net Worth-Actual Eff Tang Net Worth-Actual Debt/Worth Debt/Tang Worth Debt Less Sub Debt-Liability/Eff Tg Wth Borrowed Funds/Eff Tg Worth LT Debt/Net Fixed Assets Total Liabilities/Total Assets 1,889 1,889 1,889 1.45 1.45 1.45 1.02 1.28 0.59 2,192 2,192 2,192 1.34 1.34 1.34 0.79 1.17 0.57 1,823 1,823 1,823 2.42 2.42 2.42 1.64 1.15 0.71 1,315 1,315 1,315 4.28 4.28 4.28 3.24 0.97 0.81 479 479 479 15.00 15.00 15.00 11.84 0.87 0.94 3.24 3.56 729 652 4.22 4.73 1.35 1.25 3.31 3.01 887 743 (0.21) (0.44) 0.29 0.33 0.49 0.55 231 231 (1.02) (0.72) (0.61) (0.61) 0.12 0.12 60 172 (2.33) (2.29) (1.09) (1.09) (0.60) (0.60) (293) (107) PROFITABILITY (%) Return on Assets Return on Equity Gross Margin Net Margin 5.46 13.39 24.27 2.40 6.80 15.92 25.93 2.95 (5.92) (20.24) 21.56 (2.97) (7.65) (40.42) 20.59 (3.94) (11.40) (182.34) 19.01 (5.96) ACTIVITY Net Accounts Receivable Days Inventory Days on Hand Accounts Payable Days Net Sales/Total Assets Net Sales/Net Worth Net Sales/Net Fixed Assets Profit Before Taxes/Total Assets (%) 55.61 97.95 26.67 2.27 5.58 17.47 7.12 54.10 108.55 40.76 2.31 5.41 22.78 9.60 47.26 114.51 42.68 1.99 6.81 9.41 (5.92) 52.32 106.36 36.48 1.94 10.26 8.66 (9.27) 52.32 106.17 36.42 1.91 30.58 8.45 (13.82) 10.76 7.14 16.04 12.46 39.77 37.94 21.40 49.88 (16.83) 4.82 N/A N/A 11.43 27.68 (27.87) 8.64 (271.46) (44.02) 10.38 27.64 (63.55) 8.64 (114.96) (64.45) 2,776 3,275 2,929 3,115 3,181 ¯ ¯ ¯ ¯ ¯ COVERAGE Interest Coverage Net Income+Depr+Amort-Divs/CPLTD UCA Cash Flow Coverage UCA Cash Flow/CPLTD pp EBITDA/Interest Exp+CPLTD EBITDA/Interest Exp+CPLTD pp EBITDA EBIDA 2.52 GROWTH (%) Total Assets Growth Total Liabilities Growth Net Worth Growth Net Sales Growth Operating Profit Growth Net Profit Growth USER-DEFINED CALCULATIONS Pro Forma EBITDA ¯ Moody’s KMV Sample Reports Prepared: 18:12, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) Page 71 Long-Term Projections: Executive Financial Statement – Actual and % MMAS Sample Customer (MMASSample) Executive Financial Statement - Actual and % Industry Classification: NAICS Code: 315228 Projection Title: Long term Statement Date 6/30/2003 Months Covered 12 Audit Mthd Unqualif'd Accountant KPMG Analyst GJH Stmt Type Annual Source Currency: USD United States Dollars ASSETS Cash & Near Cash Accts/Notes Rec (Net) Inventory Other Current Assets TOTAL CURRENT ASSETS Net Fixed Assets LT Receivables & Investments Other Non-Current Assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES/NET WORTH S/T Loans Payable Current Portion - LTD Accounts Payable Accrued Liabilities Taxes Payable TOTAL CURRENT LIABILITIES Long Term Debt TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES ¯ ¯ ¯ ¯ ¯ ¯ ¯ TOTAL NET WORTH TOTAL LIABILITIES & NET WORTH ¯ INCOME STATEMENT Net Sales/Revenues Cost of Sales/Revenues Cost of Sales - Depreciation GROSS PROFIT Net Operating Expenses Depr & Amort NET OPERATING PROFIT Interest Income(Expense) Other Income(Expense) PROFIT BEFORE TAXES Income Taxes PROFIT BEFORE EXTRAORDINARY ITEMS NET PROFIT COMPREHENSIVE INCOME ¯ ¯ ¯ ¯ 6/30/2004 12 Unqualif'd KPMG GJH Annual 6/30/2005 12 Unqualif'd KPMG GJH Annual 6/30/2006 12 Projection 6/30/2007 12 Projection Annual Annual Target Currency: USD United States Dollars 144 1,605 2,141 59 3,949 3.1 34.6 46.2 1.3 85.2 90 1,756 2,610 119 4,575 1.8 34.2 50.8 2.3 89.1 75 1,608 3,056 131 4,870 1.2 25.8 49.0 2.1 78.1 129 1,934 3,122 152 5,337 1.9 27.8 44.9 2.2 76.8 144 2,101 3,453 177 5,875 1.9 27.4 45.0 2.3 76.6 603 18 66 687 4,636 13.0 0.4 1.4 14.8 100.0 520 20 20 560 5,135 10.1 0.4 0.4 10.9 100.0 1,320 22 22 1,364 6,234 21.2 0.4 0.4 21.9 100.0 1,558 26 26 1,609 6,947 22.4 0.4 0.4 23.2 100.0 1,734 30 30 1,793 7,668 22.6 0.4 0.4 23.4 100.0 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 1,148 142 583 214 30 2,117 24.8 3.1 12.6 4.6 0.6 45.7 1,134 115 980 222 2,451 22.1 2.2 19.1 4.3 47.7 1,475 169 1,139 281 3,064 23.7 2.7 18.3 4.5 49.1 2,740 169 1,071 305 4,285 39.4 2.4 15.4 4.4 61.7 4,157 169 1,184 332 5,842 54.2 2.2 15.4 4.3 76.2 630 630 13.6 13.6 492 492 9.6 9.6 1,347 1,347 21.6 21.6 1,347 1,347 19.4 19.4 1,347 1,347 17.6 17.6 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 2,747 59.3 2,943 57.3 4,411 70.8 5,632 81.1 7,189 93.7 1,889 4,636 40.7 100.0 2,192 5,135 42.7 100.0 1,823 6,234 29.2 100.0 1,315 6,947 18.9 100.0 479 7,668 6.3 100.0 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 10,535 7,739 239 2,557 2,114 13 430 (147) 47 330 77 253 100.0 73.5 2.3 24.3 20.1 0.1 4.1 (1.4) 0.4 3.1 0.7 2.4 11,848 8,552 224 3,072 2,454 17 601 (153) 45 493 144 349 100.0 72.2 1.9 25.9 20.7 0.1 5.1 (1.3) 0.4 4.2 1.2 2.9 12,419 9,468 273 2,678 2,755 21 (98) (306) 35 (369) (369) 100.0 76.2 2.2 21.6 22.2 0.2 (0.8) (2.5) 0.3 (3.0) (3.0) 13,492 10,354 361 2,778 3,117 25 (364) (318) 38 (644) (113) (531) 100.0 76.7 2.7 20.6 23.1 0.2 (2.7) (2.4) 0.3 (4.8) (0.8) (3.9) 14,658 11,452 419 2,786 3,540 29 (783) (318) 41 (1,059) (186) (874) 100.0 78.1 2.9 19.0 24.2 0.2 (5.3) (2.2) 0.3 (7.2) (1.3) (6.0) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 253 253 2.4 2.4 349 349 2.9 2.9 (369) (369) (3.0) (3.0) (531) (531) (3.9) (3.9) (874) (874) (6.0) (6.0) Cash Dividends & Withdrawals ¯ ¯ ¯ Moody’s KMV Sample Reports Prepared: 18:12, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) ¯ ¯ ¯ (46) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 23 ¯ ¯ ¯ ¯ 38 ¯ ¯ ¯ Page 72 Long-Term Projections: Executive FAS 95 Stmt of Cash Flows (Direct) MMAS Sample Customer (MMASSample) Executive FAS 95 Stmt of Cash Flows (Direct) Industry Classification: NAICS Code: 315228 Projection Title: Long term Statement Date 6/30/2003 6/30/2004 6/30/2005 6/30/2006 6/30/2007 Months Covered 12 12 12 12 12 Analyst GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual CASH FLOWS FROM OPERATING ACTIVITIES: Cash Received From Customers Cash Pd To Suppliers & Employees Interest Paid Income Taxes Paid Interest & Dividends Received Misc Cash Received (Paid) NET CASH PROV BY OPERATIONS 11,697 (11,130) (153) (174) 32 272 12,567 (12,463) (306) 35 (167) 13,166 (13,601) (318) 113 38 (603) 14,491 (15,208) (318) 186 41 (808) CASH FLOWS FROM INVESTING ACTIVITIES: Chg in Net Fixed Assets Chg in Investments Chg in Intangibles - Net NET CASH USED IN INVESTING (145) 44 (101) (1,094) (4) (1,098) (624) (7) (631) (624) (8) (632) CASH FLOWS FROM FINANCING ACTIVITIES: Chg in Short Term Liabilities Chg in Long Term Debt Net Chg in Borrowings Deferred Interest Expense Chg in Other ST and LT Liabilities Cash Dividends Paid Chg in Capital(Less Non-Cash) NET CASH PROV BY FINANCING Chg in Currency Translation CHANGE IN CASH & EQUIVALENTS (41) (138) (179) (46) (225) (54) 395 855 1,250 1,250 (15) 1,265 1,265 23 1,288 54 1,417 1,417 38 1,455 15 144 90 ¯ 90 75 ¯ 75 129 ¯ 129 144 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ADD:CASH AND EQUIVALENTS AT BOP CASH AND EQUIVALENTS AT EOP ¯ ¯ Moody’s KMV Sample Reports ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Prepared: 18:12, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) ¯ ¯ ¯ ¯ ¯ ¯ Page 73 Long-Term Projections: RiskCalc for Private Firm Version 3.1 MMAS Sample Customer (MMASSample) RiskCalc for Private Firm (United States) - Version 3.1 Industry Classification: NAICS Code: 315228 Projection Title: Long term Historical EDFs calculated with Credit Cycle Adjustments, Projected EDFs with Financial Statements Only Statement Date 6/30/2003 6/30/2004 6/30/2005 6/30/2006 6/30/2007 Months Covered 12 12 12 12 12 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Projection Projection Accountant KPMG KPMG KPMG Analyst GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual Source Currency: USD United States Dollars Target Currency: USD United States Dollars Exchange Rate: Exchange Rate Date: 1 6/30/2003 1 6/30/2004 1 6/30/2005 1 6/30/2006 1 6/30/2007 1 Yr Bond Default Rate Mapping 1 Yr Percentile 1 Yr Custom Rating Ba1.edf 46.21 N/A Baa2.edf 17.31 N/A B2.edf 86.44 N/A B3.edf 94.79 N/A Caa-C.edf 97.46 N/A 5 Yr Bond Default Rate Mapping 5 Yr Percentile 5 Yr Custom Rating Ba2.edf 55.88 N/A Baa3.edf 28.96 N/A B1.edf 86.15 N/A B3.edf 93.56 N/A Caa-C.edf 96.87 N/A Cumulative EDFs: 1 Year 2 Year 3 Year 4 Year 5 Year 0.85 1.99 3.25 4.59 5.99 0.30 0.85 1.57 2.42 3.37 4.26 6.84 8.98 10.88 12.60 6.81 10.21 12.88 15.15 17.16 9.85 14.70 18.46 21.63 24.39 Forward EDFs: 1 Year 2 Year 3 Year 4 Year 5 Year 0.85 1.14 1.28 1.39 1.47 0.30 0.56 0.72 0.86 0.98 4.26 2.69 2.30 2.08 1.93 6.81 3.64 2.98 2.61 2.37 9.85 5.38 4.41 3.88 3.53 Annualized EDFs: 1 Year 2 Year 3 Year 4 Year 5 Year 0.85 1.00 1.09 1.17 1.23 0.30 0.43 0.53 0.61 0.68 4.26 3.48 3.09 2.84 2.66 6.81 5.24 4.49 4.03 3.70 9.85 7.64 6.58 5.91 5.44 1-Yr. Relative Contributions: Return On Assets (ROA) Sales Growth Cash to Assets Change in AR Turnover Change in Return On Assets (ROA) Inventory to Sales Cash Flow to Interest Expense Retained Earnings to Current Liabilities Current Liabilities to Sales Leverage Size -32.37 N/A 24.39 N/A N/A 11.39 -5.40 -5.99 7.58 -8.19 -4.69 -19.95 -8.06 15.59 -9.23 -14.44 7.59 -4.22 -3.60 5.35 -9.05 -2.93 40.60 -6.10 9.21 -0.90 15.55 4.89 11.74 0.22 4.93 4.05 -1.82 42.01 -5.29 8.50 -3.11 -1.99 4.14 13.20 4.14 8.05 7.85 -1.72 37.60 -4.30 6.90 -4.23 0.62 3.36 10.72 7.71 7.82 15.33 -1.43 5-Yr. Relative Contributions: Return On Assets (ROA) Sales Growth Cash to Assets Change in AR Turnover Change in Return On Assets (ROA) Inventory to Sales Cash Flow to Interest Expense Retained Earnings to Current Liabilities Current Liabilities to Sales Leverage Size -15.30 N/A 24.08 N/A N/A 22.27 -6.80 -6.64 7.22 -7.97 -9.71 -9.34 -10.71 15.25 -7.04 -13.96 14.69 -5.27 -3.95 5.05 -8.73 -6.01 21.48 -9.16 10.19 -0.77 16.98 10.70 16.55 0.28 5.26 4.41 -4.22 22.60 -8.08 9.55 -2.73 -2.21 9.20 18.91 5.22 8.74 8.70 -4.06 20.16 -6.54 7.73 -3.70 0.68 7.45 15.31 9.69 8.45 16.93 -3.35 1-Yr. Relative Sensitivities: Return On Assets (ROA) -75.89 -34.41 -103.13 -47.62 -16.17 Moody’s KMV Sample Reports Prepared: 18:12, 9/22/2005 Amounts Printed in: Thousands SYSTEMREPORTS (3.1.8.0) Page 74 MMAS Sample Customer (MMASSample) RiskCalc for Private Firm (United States) - Version 3.1 Industry Classification: NAICS Code: 315228 Projection Title: Long term Statement Date 6/30/2003 6/30/2004 6/30/2005 6/30/2006 6/30/2007 Months Covered 12 12 12 12 12 Audit Mthd Unqualif'd Unqualif'd Unqualif'd Projection Projection Accountant KPMG KPMG KPMG Analyst GJH GJH GJH Stmt Type Annual Annual Annual Annual Annual Sales Growth Cash to Assets Change in AR Turnover Change in Return On Assets (ROA) Inventory to Sales Cash Flow to Interest Expense Retained Earnings to Current Liabilities Current Liabilities to Sales Leverage Size 0.00 -176.21 0.00 0.00 15.94 -268.33 -135.28 55.90 58.45 -14.00 38.15 -371.33 -35.12 -39.86 14.47 -293.75 -144.34 58.99 58.85 -10.73 -19.93 -301.65 -70.59 -24.36 10.86 -205.13 -217.71 47.11 92.32 -7.21 18.42 -310.94 95.45 -118.77 15.66 -109.33 -227.05 39.53 111.06 -6.17 22.33 -376.67 -7.31 -131.17 18.99 -132.52 -244.75 37.01 107.31 -5.79 5-Yr. Relative Sensitivities: Return On Assets (ROA) Sales Growth Cash to Assets Change in AR Turnover Change in Return On Assets (ROA) Inventory to Sales Cash Flow to Interest Expense Retained Earnings to Current Liabilities Current Liabilities to Sales Leverage Size -32.74 0.00 -160.17 0.00 0.00 28.62 -313.14 -137.60 48.88 52.20 -26.64 -16.95 53.45 -305.39 -28.27 -40.45 31.72 -320.51 -162.05 57.61 58.71 -24.89 -47.79 -26.24 -291.97 -53.33 -23.31 20.81 -253.22 -236.53 44.03 88.13 -14.64 -22.06 24.25 -300.94 72.09 -113.62 30.01 -134.93 -246.65 36.94 105.99 -12.52 -7.18 28.19 -349.60 -5.30 -120.36 34.89 -156.85 -254.97 33.17 98.23 -11.27 Percentiles: Return On Assets (ROA) Sales Growth Cash to Assets Change in AR Turnover Change in Return On Assets (ROA) Inventory to Sales Cash Flow to Interest Expense Retained Earnings to Current Liabilities Current Liabilities to Sales Leverage Size 57.04 N/A 47.14 N/A N/A 90.26 N/A 53.80 66.44 58.01 47.59 63.75 66.16 36.33 39.31 66.70 92.03 50.79 53.90 68.01 51.44 49.46 9.11 45.91 30.52 22.37 9.63 94.14 16.89 42.95 76.74 73.10 53.15 7.71 56.85 37.37 76.78 37.80 92.96 11.89 29.65 86.07 79.01 55.54 5.73 56.85 37.52 50.00 27.06 93.31 10.12 18.58 91.63 91.15 57.61 Prepared: 18:12, 9/22/2005 Amounts Printed in: Thousands SYSTEMREPORTS (3.1.8.0) Ratios or Levels: Return On Assets (ROA) 5.46 6.80 -5.92 -7.65 -11.40 Sales Growth N/A 12.46 4.82 8.64 8.64 Cash to Assets 3.11 1.75 1.20 1.86 1.88 Change in AR Turnover N/A -0.41 -1.87 1.39 0.00 Change in Return On Assets (ROA) N/A 1.34 -12.72 -1.73 -3.75 Inventory to Sales 20.32 22.03 24.61 23.14 23.56 Cash Flow to Interest Expense N/A 433.99 30.07 -125.86 -212.91 Retained Earnings to Current Liabilities 88.43 88.74 58.94 30.29 7.91 Current Liabilities to Sales 20.09 20.69 24.67 31.76 39.85 Leverage 25.01 18.33 42.49 50.60 73.76 Size 445,691.62 482,635.37 569,864.36 635,025.62 700,953.4 2 When defining percentiles, be aware that observations in the sample population are sorted in order of increasing ratio value. This means that the item's impact on risk relative to its location within a certain percentile depends upon the relationship between the ratio and risk. An item that is in a high percentile for profitability has a positive impact by lowering the probability of default, since more profitable companies have lower risk of default. Conversely, an item in a high percentile in a leverage ratio has a negative impact, since a highly leveraged company has a higher risk of default. Moody’s KMV Sample Reports Page 75 FINANCIAL PACKAGE REPORTS SHORT-TERM PROJECTION REPORTS Short-Term Projection Reports are used to project borrower financial statement data into future periods. With Short-Term Projections, the analyst can project monthly statements. In addition to the sample Short-Term Projection Reports shown in this document, the following reports are also available: 1. Short-Term Projections: Detailed Balance Sheet – Actual 2. Short-Term Projections: Comprehensive Income Statement – Actual 3. Short-Term Projections: Detailed Balance Sheet – % 4. Short-Term Projections: Detailed Income Statement – % 5. Short-Term Projections: Detailed Comprehensive Income Statement – % 6. Short-Term Projections: Detailed Balance Sheet – Actual and % 7. Short-Term Projections: Detailed Income Statement – Actual and % 8. Short-Term Projections: Detailed Comprehensive Income Statement – Actual and % 9. Short-Term Projections: Detailed Balance Sheet – Exchange Rate 10. Short-Term Projections: Detailed Income Statement – Exchange Rate 11. Short-Term Projections: Detailed Balance Sheet – Trend 12. Short-Term Projections: Detailed Income Statement – Trend 13. Short-Term Projections: Detailed UCA Cash Flow 14. Short-Term Projections: Detailed FAS 95 Stmt of Cash Flows (Indirect) 15. Short-Term Projections: Cash Flow Management 16. Short-Term Projections: Summary Income Statement – Actual 17. Short-Term Projections: Summary Balance Sheet – % 18. Short-Term Projections: Summary Income Statement – % 19. Short-Term Projections: Summary Comprehensive Income Statement – % 20. Short-Term Projections: Summary Balance Sheet – Actual and % 21. Short-Term Projections: Summary Income Statement – Actual and % 22. Short-Term Projections: Summary Comprehension Income Statement – Actual and % 23. Short-Term Projections: Summary Reconciliations 24. Short-Term Projections: FAS Stmt of Cash Flows (Direct) 25. Short-Term Projections: Summary Ratios 26. Short-Term Projections: Executive Financial Statement – Actual 27. Short-Term Projections: Executive Financial Statement – % 28. Short-Term Projections: Executive Financial Statement – Actual and % 29. Short-Term Projections: Executive FAS 95 Stmt of Cash Flows (Direct) 30. Short-Term Projections: Notes to Financial Statements 31. Short-Term Projections: Asset Based Lending Report 32. Short-Term Projections: Income Statement Account Assumptions 33. Short-Term Projections: RiskCalc for Private Firm Moody’s KMV Sample Reports Page 76 Short-Term Projections: Detailed Income Statement – Actual MMAS Sample Customer (MMASSample) Prepared: 18:15, 9/22/2005 Detailed Income Statement - Actual Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Projection Title: Short Term Statement Date 6/30/2005 7/31/2005 8/31/2005 9/30/2005 10/31/2005 11/30/2005 12/31/2005 1/31/2006 2/28/2006 3/31/2006 4/30/2006 5/31/2006 6/30/2006 6/30/2006 Months Covered 12 1 1 1 1 1 1 1 1 1 1 1 1 12 Audit Mthd Unqualif'd Total Accountant KPMG Analyst GJH Stmt Type Annual Source Currency: USD United States Dollars Net Sales - Manufacturing Division Net Sales - Catalog Division NET SALES/REVENUE Cost of Goods Sold Cost of Goods Sold Depreciation TOTAL COST OF SALES/REV GROSS PROFIT SG & A Expense Depreciation TOTAL OPERATING EXPENSE NET OPERATING PROFIT Interest Expense (-) Int. Exp. ST Loans Payable-Bank Int. Exp. CPLTD-Bank Int. Exp. Long Term Debt-Bank Total Interest Expense Other Income TOTAL OTHER INCOME(EXP) PROFIT BEFORE TAXES Current Income Tax NET PROFIT ¯ 9,317 814 814 814 814 814 814 814 814 814 814 814 814 9,768 3,102 12,419 ¯ 271 1,085 ¯ 271 1,085 ¯ 271 1,085 ¯ 271 1,085 ¯ 271 1,085 ¯ 271 1,085 ¯ 271 1,085 ¯ 271 1,085 ¯ 271 1,085 ¯ 271 1,085 ¯ 271 1,085 ¯ 271 1,085 ¯ 3,252 13,020 9,468 273 831 27 834 28 838 29 842 29 845 30 849 31 853 31 856 32 860 33 864 34 867 34 871 35 10,210 373 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 9,741 2,678 ¯ 858 227 ¯ 862 222 ¯ 867 218 ¯ 871 214 ¯ 875 209 ¯ 880 205 ¯ 884 201 ¯ 889 196 ¯ 893 192 ¯ 897 188 ¯ 902 183 ¯ 906 179 ¯ 10,584 2,434 2,755 21 2,776 (98) 242 2 244 (17) 243 2 245 (23) 245 2 247 (29) 246 2 248 (34) 247 2 250 (40) 249 2 251 (46) 250 2 252 (52) 251 2 254 (57) 253 3 255 (63) 254 3 256 (69) 255 3 258 (75) 257 3 259 (80) 2,992 28 3,019 (585) 306 306 35 (271) (369) 16 2 15 32 3 (29) (46) 16 2 15 32 3 (29) (52) 16 2 15 32 3 (29) (58) 16 2 15 32 3 (29) (64) 16 2 15 32 3 (29) (69) 16 2 15 32 3 (29) (75) 16 2 15 32 3 (29) (81) 16 2 15 32 3 (29) (87) 16 2 15 32 3 (29) (92) 16 2 15 32 3 (29) (98) 16 2 15 32 3 (29) (104) 16 2 15 32 3 (29) (110) 192 24 180 384 36 (348) (936) (369) ¯ (7) (40) ¯ (8) (45) ¯ (8) (50) ¯ (9) (54) ¯ (10) (59) ¯ (11) (64) ¯ (12) (69) ¯ (13) (74) ¯ (13) (79) ¯ (14) (84) ¯ (15) (89) ¯ (16) (94) ¯ (136) (801) (63) 231 231 (14) 15 22 (20) 10 18 (26) 5 14 (31) 10 (37) (5) 5 (43) (10) 1 (49) (15) (3) (54) (20) (7) (60) (25) (11) (66) (30) (15) (72) (35) (20) (77) (40) (24) (549) (150) (10) - 3 3 3 4 4 4 5 5 5 6 6 6 54 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ EBIT EBITDA EBIDA Dividends - Common ¯ Moody’s KMV Sample Reports Target Currency: USD United States Dollars ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Page 77 Short-Term Projections: Detailed Reconciliations MMAS Sample Customer (MMASSample) Prepared: 18:15, 9/22/2005 Detailed Reconciliations Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Projection Title: Short Term Statement Date 6/30/2005 7/31/2005 8/31/2005 9/30/2005 10/31/2005 11/30/2005 12/31/2005 1/31/2006 2/28/2006 3/31/2006 4/30/2006 5/31/2006 6/30/2006 Months Covered 12 1 1 1 1 1 1 1 1 1 1 1 1 Analyst GJH Stmt Type Annual ¯ ¯ BEGINNING RETAINED EARNINGS Net Profit Dividends - Common ENDING RETAINED EARNINGS ¯ 2,175 (369) 1,806 ¯ ¯ ¯ ¯ BEGINNING NET WORTH Net Profit Div & Withdrawals-Cash ACTUAL ENDING NET WORTH INCR(DECR) IN NET WORTH ¯ ¯ Moody’s KMV Sample Reports ¯ ¯ ¯ ¯ ¯ ¯ 1,786 (45) 3 1,744 (42) ¯ ¯ BEGINNING WORKING CAPITAL 2,124 Decrease(Increase) in Non-Current Assets: Total Fixed Assets-Net (800) Cash Value Life Insurance (2) Other Assets (2) Increase(Decrease) in Non-Current Liabilities: Long Term Debt 855 Increase(Decrease) in Net Worth (369) ENDING WORKING CAPITAL 1,806 ¯ ¯ 1,823 (40) 3 1,786 (37) ¯ ¯ Reconciliation of Retained Earnings 1,727 1,681 1,630 (50) (54) (59) 3 4 4 1,681 1,630 1,575 ¯ 1,769 (45) 3 1,727 ¯ ¯ 2,192 (369) 1,823 (369) ¯ ¯ 1,806 (40) 3 1,769 ¯ ¯ ¯ ¯ 1,575 (64) 4 1,515 ¯ ¯ ¯ ¯ ¯ 1,515 (69) 5 1,451 1,451 (74) 5 1,382 1,382 (79) 5 1,308 1,308 (84) 6 1,230 ¯ ¯ 1,592 (64) 4 1,532 (60) ¯ Reconciliation of Working Capital 1,603 1,496 1,385 ¯ ¯ ¯ Reconciliation of Net Worth 1,744 1,698 1,647 (50) (54) (59) 3 4 4 1,698 1,647 1,592 (46) (51) (55) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 1,532 (69) 5 1,468 (65) 1,468 (74) 5 1,399 (69) 1,399 (79) 5 1,325 (74) 1,325 (84) 6 1,247 (78) ¯ ¯ ¯ ¯ ¯ 1,230 (89) 6 1,147 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 1,247 (89) 6 1,164 (83) ¯ ¯ 1,147 (94) 6 1,059 1,164 (94) 6 1,076 (87) ¯ ¯ ¯ ¯ ¯ ¯ 1,271 1,152 1,030 903 773 639 501 1,806 1,707 (62) - (61) - (60) - (59) - (59) - (58) - (57) - (56) - (56) - (55) - (54) - (53) - (37) 1,707 (42) 1,603 (46) 1,496 (51) 1,385 (55) 1,271 (60) 1,152 (65) 1,030 (69) 903 (74) 773 (78) 639 (83) 501 (87) 360 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Page 78 Short-Term Projections: Detailed FAS 95 Stmt of Cash Flows (Direct) MMAS Sample Customer (MMASSample) Prepared: 18:15, 9/22/2005 Detailed FAS 95 Stmt of Cash Flows (Direct) Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Projection Title: Short Term Statement Date 6/30/2005 7/31/2005 8/31/2005 9/30/2005 10/31/2005 11/30/2005 12/31/2005 1/31/2006 2/28/2006 3/31/2006 4/30/2006 5/31/2006 6/30/2006 6/30/2006 Months Covered 12 1 1 1 1 1 1 1 1 1 1 1 1 12 Analyst GJH Stmt Type Annual CASH FLOWS FROM OPERATING ACTIVITIES: Net Sales - Manufacturing 9,317 Division Net Sales - Catalog Division 3,102 Chg in Accts/Notes Rec-Trade 144 Chg in Bad Debt Reserve (-) 4 Cash Received From Customers 12,567 ¯ Cost of Goods Sold Chg in Inventory Chg in Accounts Payable-Trade SG & A Expense Chg in Prepaid Expenses Chg in Accrued Expenses Cash Paid To Suppliers and Employees Interest Expense (-) Int. Exp. ST Loans Payable-Bank Int. Exp. CPLTD-Bank Int. Exp. Long Term Debt-Bank Interest Paid Current Income Tax Income Taxes Paid ¯ ¯ ¯ Interest & Dividends Received Other Income Misc Cash Received(Paid) ¯ NET CASH PROVIDED BY OPERATIONS ¯ 814 814 814 814 814 814 814 814 814 814 814 814 9,768 271 (204) 5 885 271 1,085 271 1,085 271 1,085 271 1,085 271 1,085 271 1,085 271 1,085 271 1,085 271 1,085 271 1,085 271 1,085 3,252 (204) 5 12,820 (9,468) (446) 159 (2,755) (12) 59 (831) (74) 32 (242) (2) 1 (834) (14) 5 (243) (2) 1 (838) (14) 5 (245) (2) 1 (842) (13) 5 (246) (2) 1 (845) (14) 5 (247) (2) 1 (849) (14) 5 (249) (2) 1 (853) (14) 5 (250) (2) 1 (856) (14) 5 (251) (2) 1 (860) (14) 5 (253) (2) 1 (864) (13) 5 (254) (2) 1 (867) (14) 5 (255) (3) 1 (871) (14) 5 (257) (3) 1 (10,210) (226) 87 (2,992) (26) 12 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ (12,463) (1,116) (1,087) (1,093) (1,097) (1,102) (1,107) (1,113) (1,118) (1,123) (1,127) (1,133) (1,138) (13,354) (306) (306) (16) (2) (15) (32) (16) (2) (15) (32) (16) (2) (15) (32) (16) (2) (15) (32) (16) (2) (15) (32) (16) (2) (15) (32) (16) (2) (15) (32) (16) (2) (15) (32) (16) (2) (15) (32) (16) (2) (15) (32) (16) (2) (15) (32) (16) (2) (15) (32) (192) (24) (180) (384) - ¯ 7 7 ¯ 8 8 ¯ 8 8 ¯ 9 9 ¯ 10 10 ¯ 11 11 ¯ 12 12 ¯ 13 13 ¯ 13 13 ¯ 14 14 ¯ 15 15 ¯ 16 16 ¯ 136 136 - - - - - - - - - - - - - - 35 35 ¯ 3 3 ¯ 3 3 ¯ 3 3 ¯ 3 3 ¯ 3 3 ¯ 3 3 ¯ 3 3 ¯ 3 3 ¯ 3 3 ¯ 3 3 ¯ 3 3 ¯ 3 3 ¯ 36 36 (167) (253) (24) (28) (32) (37) (41) (45) (49) (54) (57) (62) (66) (748) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ (59) (76) (76) (76) (76) (76) (76) (76) (76) (76) (76) (76) (895) (32) (15) (15) (15) (15) (15) (15) (15) (15) (15) (15) (15) (197) 29 (27) 30 (28) 31 (29) 32 (29) 32 (30) 33 (31) 34 (31) 35 (32) 35 (33) 36 (34) 37 (34) 38 (35) 402 (373) (2) (91) (2) (91) (2) (91) (2) (91) (2) (91) (2) (91) (2) (91) (2) (91) (3) (91) (3) (91) (3) (91) (3) (91) (28) (1,092) ¯ ¯ CASH FLOWS FROM INVESTING ACTIVITIES: Chg in Property Plant & (946) Equipment Chg in Furniture, Fixtures & (147) Vehicles Chg in Accumulated Deprec (-) 293 Cost of Goods Sold (273) Depreciation Depreciation (21) Chg in Net Fixed Assets (1,094) ¯ Moody’s KMV Sample Reports ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Page 79 MMAS Sample Customer (MMASSample) Prepared: 18:15, 9/22/2005 Detailed FAS 95 Stmt of Cash Flows (Direct) Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Projection Title: Short Term Statement Date 6/30/2005 7/31/2005 8/31/2005 9/30/2005 10/31/2005 11/30/2005 12/31/2005 1/31/2006 2/28/2006 3/31/2006 4/30/2006 5/31/2006 6/30/2006 6/30/2006 Months Covered 12 1 1 1 1 1 1 1 1 1 1 1 1 12 Analyst GJH Stmt Type Annual Chg in Cash Value Life Insurance Chg in Other Assets Chg in Investments ¯ ¯ NET CASH USED IN INVESTING (2) - - - - - - - - - - - - - (2) (4) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (1) (12) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ (92) (92) (92) (92) (92) (92) (92) (92) (92) (92) (92) (92) (1,104) 360 360 3 362 113 113 3 116 117 117 3 121 121 121 4 124 125 125 4 129 129 129 4 133 133 133 5 137 137 137 5 142 141 141 5 146 144 144 6 150 148 148 6 154 152 152 6 158 1,820 1,820 54 1,872 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ (15) 18 - - - - - - - - - - - 18 ¯ 90 75 ¯ 75 93 ¯ 93 93 ¯ 93 94 ¯ 94 94 ¯ 94 94 ¯ 94 95 ¯ 95 95 ¯ 95 96 ¯ 96 96 ¯ 96 97 ¯ 97 97 ¯ 97 97 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ CHANGE IN CASH & EQUIV. Add: Cash CASH AND EQUIVALENTS AT EOP ¯ (1,098) CASH FLOWS FROM FINANCING ACTIVITIES: Chg in Required Borrowings Chg in Note Payable - Bank 341 Chg in CPLTD-Bank 54 Chg in Long Term Debt 855 Net Chg in Borrowings 1,250 Dividends - Common NET CASH PROV BY 1,250 FINANCING ¯ ¯ Moody’s KMV Sample Reports Page 80 Short-Term Projections: Detailed Ratios MMAS Sample Customer (MMASSample) Prepared: 18:15, 9/22/2005 Detailed Ratios Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Projection Title: Short Term Statement Date 6/30/2005 7/31/2005 8/31/2005 9/30/2005 10/31/2005 11/30/2005 12/31/2005 1/31/2006 2/28/2006 3/31/2006 4/30/2006 5/31/2006 6/30/2006 Months Covered 12 1 1 1 1 1 1 1 1 1 1 1 1 Analyst GJH Stmt Type Annual ACTIVITY Gross Accounts Receivable Days Net Accounts Receivable Days Inventory Days on Hand Inventory Days on Hand (excl Depr) Accounts Payable Days Accounts Payable Days (excl Depr) Net Sales/Total Assets Net Sales/Net Worth Net Sales/Net Fixed Assets Profit Before Taxes/Total Assets (%) 49.90 47.26 114.51 117.81 42.68 43.91 1.99 6.81 9.41 (5.92) 53.33 50.68 110.96 114.60 41.51 42.87 1.98 7.29 9.42 (8.45) 53.33 50.68 110.88 114.60 41.48 42.87 1.95 7.46 9.02 (9.38) 53.33 50.68 110.81 114.60 41.45 42.87 1.93 7.67 8.66 (10.31) 53.33 50.68 110.74 114.60 41.42 42.87 1.91 7.90 8.33 (11.19) 53.33 50.68 110.66 114.60 41.40 42.87 1.89 8.18 8.03 (12.06) 53.33 50.68 110.59 114.60 41.37 42.87 1.87 8.50 7.76 (12.92) 53.33 50.68 110.52 114.60 41.35 42.87 1.85 8.87 7.50 (13.78) 53.33 50.68 110.45 114.60 41.32 42.87 1.83 9.31 7.26 (14.60) 53.33 50.68 110.39 114.60 41.29 42.87 1.81 9.83 7.05 (15.41) 53.33 50.68 110.32 114.60 41.27 42.87 1.79 10.44 6.84 (16.19) 53.33 50.68 110.25 114.60 41.24 42.87 1.77 11.19 6.65 (16.99) 53.33 50.68 110.18 114.60 41.22 42.87 1.76 12.09 6.48 (17.75) GROWTH (%) Total Assets Growth Total Liabilities Growth Net Worth Growth Net Sales Growth Operating Profit Growth Net Profit Growth Sustainable Growth 21.40 49.88 (16.83) 4.82 N/A N/A (16.83) 5.70 8.90 (2.03) 4.82 (110.83) (28.83) (19.91) 1.19 2.49 (2.33) (33.33) (12.37) (22.24) 1.16 2.51 (2.65) (25.47) (11.22) (24.63) 1.13 2.52 (2.99) (19.55) (9.71) (26.99) 1.11 2.54 (3.36) (16.67) (9.02) (29.42) 1.09 2.55 (3.76) (14.29) (8.28) (31.93) 1.07 2.56 (4.21) (12.74) (7.79) (34.55) 1.05 2.56 (4.71) (11.09) (7.09) (37.23) 1.03 2.57 (5.27) (9.98) (6.62) (40.04) 1.00 2.56 (5.90) (8.90) (6.09) (42.95) 0.99 2.57 (6.65) (8.49) (5.96) (46.08) 0.97 2.57 (7.51) (7.68) (5.52) (49.37) 2,929 232 228 224 220 217 213 209 205 201 198 194 190 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ USER-DEFINED CALCULATIONS Pro Forma EBITDA ¯ Moody’s KMV Sample Reports Page 81 Short-Term Projections: Summary Balance Sheet – Actual MMAS Sample Customer (MMASSample) Summary Balance Sheet - Actual Industry Classification: NAICS Code: 315228 Projection Title: Short Term Statement Date 6/30/2005 7/31/2005 8/31/2005 9/30/2005 Months Covered 12 1 1 1 Audit Mthd Unqualif'd Accountant KPMG Analyst GJH Stmt Type Annual Source Currency: USD United States Dollars ASSETS Cash & Equivalents Accts/Notes Rec-Trade (Net) Trade Inventory Operating Current Assets TOTAL CURRENT ASSETS Net Fixed Assets Investments Non-Op Non-Curr Assets TOTAL NON-CURRENT ASSETS TOTAL ASSETS LIABILITIES/NET WORTH Overdrafts (Financing) S/T Loans Payable CPLTD-Bank Accounts Payable - Trade Other Accruals TOTAL CURRENT LIABILITIES Long Term Debt TOTAL NON-CURRENT LIABILITIES TOTAL LIABILITIES Stock Retained Earnings TOTAL NET WORTH TOTAL LIABILITIES & NET WORTH ¯ 93 1,807 3,130 133 5,163 93 1,807 3,144 135 5,180 94 1,807 3,158 138 5,196 94 1,807 3,171 140 5,212 94 1,807 3,185 142 5,229 95 1,807 3,199 144 5,246 95 1,807 3,213 147 5,262 96 1,807 3,227 149 5,279 96 1,807 3,241 152 5,296 97 1,807 3,254 154 5,312 97 1,807 3,268 156 5,329 97 1,807 3,282 159 5,346 1,320 22 22 1,364 6,234 1,382 22 22 1,426 6,590 1,443 23 23 1,488 6,668 1,503 23 23 1,549 6,745 1,562 23 23 1,609 6,821 1,621 24 24 1,668 6,897 1,679 24 24 1,727 6,973 1,736 25 25 1,785 7,047 1,792 25 25 1,842 7,121 1,848 25 25 1,899 7,194 1,903 26 26 1,954 7,267 1,957 26 26 2,009 7,338 2,010 27 27 2,064 7,410 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 1,475 169 1,139 281 3,064 360 1,475 169 1,171 282 3,457 473 1,475 169 1,176 283 3,576 590 1,475 169 1,181 284 3,700 711 1,475 169 1,186 285 3,827 836 1,475 169 1,192 287 3,958 965 1,475 169 1,197 288 4,094 1,098 1,475 169 1,202 289 4,233 1,235 1,475 169 1,207 290 4,376 1,375 1,475 169 1,212 291 4,523 1,519 1,475 169 1,217 292 4,673 1,668 1,475 169 1,223 293 4,828 1,820 1,475 169 1,228 295 4,986 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 1,347 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 4,411 4,804 4,923 5,047 5,174 5,305 5,441 5,580 5,723 5,870 6,020 6,175 6,333 17 1,806 1,823 6,234 17 1,769 1,786 6,590 17 1,727 1,744 6,668 17 1,681 1,698 6,745 17 1,630 1,647 6,821 17 1,575 1,592 6,897 17 1,515 1,532 6,973 17 1,451 1,468 7,047 17 1,382 1,399 7,121 17 1,308 1,325 7,194 17 1,230 1,247 7,267 17 1,147 1,164 7,338 17 1,059 1,076 7,410 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Moody’s KMV Sample Reports 75 1,608 3,056 131 4,870 ¯ ¯ 10/31/2005 11/30/2005 12/31/2005 1/31/2006 2/28/2006 3/31/2006 4/30/2006 5/31/2006 6/30/2006 1 1 1 1 1 1 1 1 1 Target Currency: USD United States Dollars ¯ ¯ Prepared: 18:15, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Page 82 Short-Term Projections: Summary Comprehensive Income Statement – Actual MMAS Sample Customer (MMASSample) Prepared: 18:15, 9/22/2005 Summary Comprehensive Income Statement - Actual Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Projection Title: Short Term Statement Date 6/30/2005 7/31/2005 8/31/2005 9/30/2005 10/31/2005 11/30/2005 12/31/2005 1/31/2006 2/28/2006 3/31/2006 4/30/2006 5/31/2006 6/30/2006 6/30/2006 Months Covered 12 1 1 1 1 1 1 1 1 1 1 1 1 12 Audit Mthd Unqualif'd Total Accountant KPMG Analyst GJH Stmt Type Annual Source Currency: USD United States Dollars Sales/Revenues Cost of Sales/Revenues Cost of Sales - Depreciation TOTAL COST OF SALES/REV GROSS PROFIT S,G, & A Expense Depreciation TOTAL OPERATING EXP(INC) NET OPERATING PROFIT Interest Income(Expense) Other Income(Expense) TOTAL OTHER INCOME(EXP) PROFIT BEFORE TAXES ¯ 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 13,020 9,468 273 9,741 2,678 831 27 858 227 834 28 862 222 838 29 867 218 842 29 871 214 845 30 875 209 849 31 880 205 853 31 884 201 856 32 889 196 860 33 893 192 864 34 897 188 867 34 902 183 871 35 906 179 10,210 373 10,584 2,434 2,755 21 2,776 (98) 242 2 244 (17) 243 2 245 (23) 245 2 247 (29) 246 2 248 (34) 247 2 250 (40) 249 2 251 (46) 250 2 252 (52) 251 2 254 (57) 253 3 255 (63) 254 3 256 (69) 255 3 258 (75) 257 3 259 (80) 2,992 28 3,019 (585) (306) 35 (271) (369) (32) 3 (29) (46) (32) 3 (29) (52) (32) 3 (29) (58) (32) 3 (29) (64) (32) 3 (29) (69) (32) 3 (29) (75) (32) 3 (29) (81) (32) 3 (29) (87) (32) 3 (29) (92) (32) 3 (29) (98) (32) 3 (29) (104) (32) 3 (29) (110) (384) 36 (348) (936) (369) (7) (40) (8) (45) (8) (50) (9) (54) (10) (59) (11) (64) (12) (69) (13) (74) (13) (79) (14) (84) (15) (89) (16) (94) (136) (801) (63) 231 231 (14) 15 22 (20) 10 18 (26) 5 14 (31) 10 (37) (5) 5 (43) (10) 1 (49) (15) (3) (54) (20) (7) (60) (25) (11) (66) (30) (15) (72) (35) (20) (77) (40) (24) (549) (150) (10) (369) (40) (45) (50) (54) (59) (64) (69) (74) (79) (84) (89) (94) (801) ¯ ¯ ¯ ¯ ¯ EBIT EBITDA EBIDA ¯ ¯ ¯ Cash Dividends & Withdrawals ¯ ¯ Moody’s KMV Sample Reports ¯ ¯ 3 ¯ ¯ ¯ 3 ¯ ¯ ¯ 3 ¯ ¯ ¯ 4 ¯ ¯ ¯ 4 ¯ ¯ ¯ 4 ¯ ¯ ¯ 5 ¯ ¯ ¯ 5 ¯ 5 ¯ ¯ ¯ 6 ¯ ¯ ¯ ¯ 6 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Income Taxes NET PROFIT Other Comprehensive Income COMPREHENSIVE INCOME 12,419 ¯ ¯ Target Currency: USD United States Dollars ¯ 6 ¯ 54 ¯ ¯ Page 83 Short-Term Projections: Summary UCA Cash Flow MMAS Sample Customer (MMASSample) Summary UCA Cash Flow Industry Classification: NAICS Code: 315228 Projection Title: Short Term Statement Date 6/30/2005 7/31/2005 Months Covered 12 1 Analyst GJH Stmt Type Annual Net Sales Chg in Accts/Notes RecTrade(Net) Cash Collected From Sales Cost of Sales/Revenues Chg in Inventories Chg in Accts Payable-Trade Cash Paid To Suppliers CASH FROM TRADING ACTIVITIES S,G&A Expense(Less Non-Cash Exp) Chg in Prepaids/Deferreds Chg in Accruals & Other Pay Cash Paid for Operating Costs CASH AFTER OPERATIONS Other Income (Expense) Taxes - Paid in Cash Other Income (Expense) & Taxes Paid NET CASH AFTER OPERATIONS ¯ ¯ ¯ ¯ ¯ ¯ ¯ Interest Expense Dividends - Paid in Cash Cash Paid for Dividends & Interest NET CASH INCOME Current Portion Long Term Debt CASH AFTER DEBT AMORTIZATION Chg in Net Fixed Assets Chg in Investments Cash Paid for Plant and Investments FINANCING SURPLUS (REQMNTS) Chg in ST Loans/Other Payables Chg in LT & Sub Debt Total External Financing CASH AFTER FINANCING Add:Beginning Cash & Equivalents ENDING CASH & EQUIVALENTS ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Moody’s KMV Sample Reports 12,419 148 1,085 (199) Prepared: 18:15, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 8/31/2005 1 1,085 - 9/30/2005 10/31/2005 11/30/2005 12/31/2005 1/31/2006 1 1 1 1 1 1,085 - 1,085 - 1,085 - 1,085 - 1,085 - 2/28/2006 1 1,085 - 3/31/2006 4/30/2006 1 1 1,085 - 1,085 - 5/31/2006 6/30/2006 6/30/2006 1 1 12 1,085 - 1,085 - 13,020 (199) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 12,567 (9,468) (446) 159 (9,755) 2,812 885 (831) (74) 32 (873) 12 1,085 (834) (14) 5 (843) 242 1,085 (838) (14) 5 (847) 238 1,085 (842) (13) 5 (850) 235 1,085 (845) (14) 5 (854) 231 1,085 (849) (14) 5 (858) 227 1,085 (853) (14) 5 (861) 223 1,085 (856) (14) 5 (865) 220 1,085 (860) (14) 5 (869) 216 1,085 (864) (13) 5 (872) 213 1,085 (867) (14) 5 (876) 209 1,085 (871) (14) 5 (880) 205 12,820 (10,210) (226) 87 (10,348) 2,471 (2,755) (242) (243) (245) (246) (247) (249) (250) (251) (253) (254) (255) (257) (2,992) (12) 59 (2,708) 104 35 35 (2) 1 (243) (230) 3 7 10 (2) 1 (244) (3) 3 8 11 (2) 1 (246) (8) 3 8 12 (2) 1 (247) (12) 3 9 12 (2) 1 (248) (18) 3 10 13 (2) 1 (250) (23) 3 11 14 (2) 1 (251) (28) 3 12 15 (2) 1 (252) (33) 3 13 16 (2) 1 (254) (38) 3 13 17 (2) 1 (255) (43) 3 14 17 (3) 1 (257) (48) 3 15 18 (3) 1 (258) (53) 3 16 19 (26) 12 (3,005) (537) 36 136 174 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 139 (221) 8 4 - (4) (9) (13) (17) (21) (25) (30) (34) (362) (306) (306) (167) (115) (282) (32) 3 (30) (250) (14) (264) (32) 3 (29) (21) (14) (35) (32) 3 (29) (25) (14) (39) (32) 4 (29) (29) (14) (43) (32) 4 (28) (33) (14) (47) (32) 4 (28) (37) (14) (51) (32) 5 (28) (41) (14) (55) (32) 5 (27) (44) (14) (59) (32) 5 (27) (48) (14) (62) (32) 6 (27) (52) (14) (66) (32) 6 (26) (56) (14) (70) (32) 6 (26) (60) (14) (74) (384) 54 (334) (696) (168) (865) (1,094) (4) (1,098) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) (1,092) (12) (1,104) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ (1,380) (356) (127) (131) (135) (139) (143) (146) (150) (154) (158) (162) (166) (1,967) 341 1,024 1,365 (15) 90 360 14 374 18 75 113 14 127 93 117 14 131 93 121 14 135 94 125 14 139 94 129 14 143 94 133 14 147 95 137 14 151 95 141 14 155 96 144 14 158 96 148 14 162 97 152 14 166 97 1,820 168 1,988 18 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 75 93 93 94 94 94 95 95 96 96 97 97 97 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Page 84 ¯ ¯ ¯ Short-Term Projections: FAS 95 Stmt of Cash Flows (Indirect) MMAS Sample Customer (MMASSample) Prepared: 18:15, 9/22/2005 Summary FAS 95 Stmt of Cash Flows (Indirect) Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Projection Title: Short Term Statement Date 6/30/2005 7/31/2005 8/31/2005 9/30/2005 10/31/2005 11/30/2005 12/31/2005 1/31/2006 2/28/2006 3/31/2006 4/30/2006 5/31/2006 6/30/2006 Months Covered 12 1 1 1 1 1 1 1 1 1 1 1 1 Analyst GJH Stmt Type Annual CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (369) (40) (45) (50) (54) (59) (64) (69) (74) (79) (84) (89) (94) 294 148 (446) (12) 159 59 202 (167) 29 (199) (74) (2) 32 1 (213) (253) 30 (14) (2) 5 1 20 (24) 31 (14) (2) 5 1 21 (28) 32 (13) (2) 5 1 22 (32) 32 (14) (2) 5 1 23 (37) 33 (14) (2) 5 1 23 (41) 34 (14) (2) 5 1 24 (45) 35 (14) (2) 5 1 25 (49) 35 (14) (2) 5 1 25 (54) 36 (13) (2) 5 1 26 (57) 37 (14) (3) 5 1 27 (62) 38 (14) (3) 5 1 28 (66) CASH FLOWS FROM INVESTING ACTIVITIES: Chg in Net Fixed Assets (1,094) Chg in Long Term Investments (4) NET CASH USED IN INVESTING (1,098) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) (91) (1) (92) CASH FLOWS FROM FINANCING ACTIVITIES: Chg in ST Loans 341 Chg in CP-Long Term Debt 54 Chg in Long Term Debt 855 Net Chg in Borrowings 1,250 Cash Dividends Paid NET CASH PROV BY FINANCING 1,250 CHANGE IN CASH & EQUIVALENTS (15) 360 360 3 362 18 113 113 3 116 - 117 117 3 121 - 121 121 4 124 - 125 125 4 129 - 129 129 4 133 - 133 133 5 137 - 137 137 5 142 - 141 141 5 146 - 144 144 6 150 - 148 148 6 154 - 152 152 6 158 - Reconciling Items Deprec & Amort Chg in Net Receivables Chg in Inventories Chg in Prepaids/Deferreds Chg in Accts Payable-Trade & Othr Chg in Accruals Total Adjustments NET CASH PROV BY OPERATIONS ¯ ¯ ¯ ADD:CASH AND EQUIVALENTS AT BOP CASH AND EQUIVALENTS AT EOP Moody’s KMV Sample Reports ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 75 93 ¯ 93 93 ¯ 93 94 ¯ 94 94 ¯ 94 94 ¯ 94 95 ¯ 95 95 ¯ 95 96 ¯ 96 96 ¯ 96 97 ¯ 97 97 ¯ 97 97 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 90 75 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Page 85 Short-Term Projections: Summary Cash Flow Management MMAS Sample Customer (MMASSample) Summary Cash Flow Management Industry Classification: NAICS Code: 315228 Projection Title: Short Term Statement Date Months Covered Analyst Stmt Type UCA CASH AFTER OPERATIONS Net Sales Chg in Accts/Notes Rec-Trade(Net) Cash Collected From Sales Prepared: 18:15, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 6/30/2005 7/31/2005 8/31/2005 9/30/2005 10/31/2005 11/30/2005 12/31/2005 1/31/2006 2/28/2006 3/31/2006 4/30/2006 5/31/2006 6/30/2006 12 1 1 1 1 1 1 1 1 1 1 1 1 GJH Annual 12,419 148 12,567 1,085 (199) 885 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 1,085 (9,468) (446) 159 (9,755) 2,812 (831) (74) 32 (873) 12 (834) (14) 5 (843) 242 (838) (14) 5 (847) 238 (842) (13) 5 (850) 235 (845) (14) 5 (854) 231 (849) (14) 5 (858) 227 (853) (14) 5 (861) 223 (856) (14) 5 (865) 220 (860) (14) 5 (869) 216 (864) (13) 5 (872) 213 (867) (14) 5 (876) 209 (871) (14) 5 (880) 205 (2,755) (12) 59 (2,708) 104 (242) (2) 1 (243) (230) (243) (2) 1 (244) (3) (245) (2) 1 (246) (8) (246) (2) 1 (247) (12) (247) (2) 1 (248) (18) (249) (2) 1 (250) (23) (250) (2) 1 (251) (28) (251) (2) 1 (252) (33) (253) (2) 1 (254) (38) (254) (2) 1 (255) (43) (255) (3) 1 (257) (48) (257) (3) 1 (258) (53) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Net Sales Growth (%) Total Cash Impact of Growth 4.82 (238) 4.82 (170) (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) (7) Gross Margin (plus Depr) % Cash Impact of Gross Margin Mgmt 23.76 (504) 23.42 (4) 23.08 (4) 22.74 (4) 22.41 (4) 22.07 (4) 21.73 (4) 21.39 (4) 21.05 (4) 20.71 (4) 20.38 (4) 20.04 (4) 19.70 (4) Operating Expense (excl Depr) % Cash Impact of Oper Exp Mgmt 22.18 (183) 22.30 (1) 22.42 (1) 22.55 (1) 22.67 (1) 22.79 (1) 22.91 (1) 23.04 (1) 23.16 (1) 23.28 (1) 23.40 (1) 23.53 (1) 23.65 (1) Accounts Receivable Days Cash Impact of Accts Rec Days Mgmt 47.26 233 50.68 (122) 50.68 - 50.68 - 50.68 - 50.68 - 50.68 - 50.68 - 50.68 - 50.68 - 50.68 - 50.68 - 50.68 - Inventory Days on Hand (excl Depr) Cash Impact of Inv Days Mgmt 117.81 (166) 114.60 88 114.60 - 114.60 - 114.60 - 114.60 - 114.60 - 114.60 - 114.60 - 114.60 - 114.60 - 114.60 - 114.60 - Accounts Payable Days (excl Depr) Cash Impact of A/P Days Mgmt 43.91 54 42.87 (28) 42.87 - 42.87 - 42.87 - 42.87 - 42.87 - 42.87 - 42.87 - 42.87 - 42.87 - 42.87 - 42.87 - 131 (6) 133 4 135 (2) 138 (2) 140 (2) 142 (2) 144 (2) 147 (2) 149 (2) 152 (2) 154 (2) 156 (3) 159 (3) 37.23 32 35.47 (14) 35.42 - 35.35 (1) 35.30 - 35.26 - 35.21 - 35.15 (1) 35.10 - 35.06 - 35.02 - 34.96 - 34.92 - - - - - - - - - - - - - - ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Cost of Sales/Revenues Chg in Inventories Chg in Accts Payable-Trade Cash Paid To Suppliers CASH FROM TRADING ACTIVITIES S,G&A Expense(Less Non-Cash Exp) Chg in Prepaids/Deferreds Chg in Accruals & Other Pay Cash Paid for Operating Costs CASH AFTER OPERATIONS ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ CASH IMPACT ANALYSIS Other Operating Assets Cash Impact of Other Op Assets Mgmt Accrued Expenses Days Cash Impact of Accruals Mgmt Other Current Liabilities Cash Impact of Other Current Liabilities Mgmt ¯ Moody’s KMV Sample Reports Page 86 Short-Term Projections: Executive Reconciliations & Ratios MMAS Sample Customer (MMASSample) Prepared: 18:15, 9/22/2005 Executive Reconciliations & Ratios Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Projection Title: Short Term Statement Date 6/30/2005 7/31/2005 8/31/2005 9/30/2005 10/31/2005 11/30/2005 12/31/2005 1/31/2006 2/28/2006 3/31/2006 4/30/2006 5/31/2006 6/30/2006 6/30/2006 Months Covered 12 1 1 1 1 1 1 1 1 1 1 1 1 12 Analyst GJH Stmt Type Annual ¯ ¯ BEGINNING WORKING CAPITAL Chg in Total Fixed Assets-Net Chg in Long Term Rec & Invest Chg in Other LT Assets Chg in Long Term Debt Chg in Net Worth ENDING WORKING CAPITAL ¯ Moody’s KMV Sample Reports ¯ 1,603 (800) (2) (2) 855 (369) 1,806 (62) (37) 1,707 (61) (42) 1,603 (60) (46) 1,496 ¯ ¯ ¯ Reconciliation of Working Captial 1,496 1,385 1,271 ¯ 1,707 ¯ (59) (51) 1,385 ¯ ¯ (59) (55) 1,271 ¯ 12,567 (9,755) 2,812 885 (873) 12 1,085 (843) 242 1,085 (847) 238 (2,708) 104 35 139 (243) (230) 3 7 (221) (244) (3) 3 8 8 (246) (8) 3 8 4 (247) (12) 3 9 - (306) (167) (115) (32) 3 (250) (14) (32) 3 (21) (14) (32) 3 (25) (14) (282) (264) (35) (1,094) (4) (91) (1) - ¯ ¯ ¯ ¯ (58) (60) 1,152 ¯ UCA Cash Flow 1,085 1,085 (850) (854) 235 231 ¯ Cash Collected From Sales Cash Paid To Suppliers CASH FROM TRADING ACTIVITIES Cash Paid for Operating Costs CASH AFTER OPERATIONS Other Cash Expenses Taxes - Paid in Cash NET CASH AFTER OPERATIONS Interest - Paid in Cash Dividends - Paid in Cash NET CASH INCOME Current Portion Long Term Debt CASH AFTER DEBT AMORTIZATION Chg in Net Fixed Assets Chg in Investments & Intangibles Extraordinary and Non-Cash Items FINANCING SURPLUS (REQMNTS) Total External Financing CASH AFTER FINANCING Add:Beginning Cash & Equivalents ENDING CASH & EQUIVALENTS ¯ 1,806 ¯ ¯ ¯ 2,124 ¯ ¯ ¯ ¯ ¯ ¯ ¯ 1,030 903 773 639 501 (57) (65) 1,030 (56) (69) 903 (56) (74) 773 (55) (78) 639 (54) (83) 501 (53) (87) 360 ¯ ¯ ¯ 1,152 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 1,085 (858) 227 1,085 (861) 223 1,085 (865) 220 1,085 (869) 216 1,085 (872) 213 1,085 (876) 209 1,085 (880) 205 12,820 (10,348) 2,471 (248) (18) 3 10 (4) (250) (23) 3 11 (9) (251) (28) 3 12 (13) (252) (33) 3 13 (17) (254) (38) 3 13 (21) (255) (43) 3 14 (25) (257) (48) 3 15 (30) (258) (53) 3 16 (34) (3,005) (537) 36 136 (362) (32) 4 (29) (14) (32) 4 (33) (14) (32) 4 (37) (14) (32) 5 (41) (14) (32) 5 (44) (14) (32) 5 (48) (14) (32) 6 (52) (14) (32) 6 (56) (14) (32) 6 (60) (14) (384) 54 (696) (168) (39) (43) (47) (51) (55) (59) (62) (66) (70) (74) (865) (91) (1) (91) (1) (91) (1) (91) (1) (91) (1) (91) (1) (91) (1) (91) (1) (91) (1) (91) (1) (91) (1) (1,092) (12) - - - - - - - - - - - - - (1,380) (356) (127) (131) (135) (139) (143) (146) (150) (154) (158) (162) (166) (1,967) 1,365 (15) 90 374 18 75 127 93 131 93 135 94 139 94 143 94 147 95 151 95 155 96 158 96 162 97 166 97 1,988 18 75 93 93 94 94 94 95 95 96 96 97 97 97 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Page 87 MMAS Sample Customer (MMASSample) Prepared: 18:15, 9/22/2005 Executive Reconciliations & Ratios Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Projection Title: Short Term Statement Date 6/30/2005 7/31/2005 8/31/2005 9/30/2005 10/31/2005 11/30/2005 12/31/2005 1/31/2006 2/28/2006 3/31/2006 4/30/2006 5/31/2006 6/30/2006 6/30/2006 Months Covered 12 1 1 1 1 1 1 1 1 1 1 1 1 12 Analyst GJH Stmt Type Annual ¯ 1,806 0.55 1.59 2.42 2.42 (0.44) 1,707 0.55 1.49 2.69 2.69 (0.54) 1,603 0.53 1.45 2.82 2.82 (0.81) 1,496 0.51 1.40 2.97 2.97 (1.09) 1,385 0.50 1.36 3.14 3.14 (1.36) Ratios 1,271 0.48 1.32 3.33 3.33 (1.63) (5.92) (20.24) 47.26 114.51 42.68 21.40 49.88 (16.83) 4.82 N/A (7.21) (26.62) 50.68 110.96 41.51 5.70 8.90 (2.03) 4.82 (28.83) (8.01) (30.62) 50.68 110.88 41.48 1.19 2.49 (2.33) (12.37) (8.81) (34.99) 50.68 110.81 41.45 1.16 2.51 (2.65) (11.22) (9.56) (39.57) 50.68 110.74 41.42 1.13 2.52 (2.99) (9.71) ¯ ¯ ¯ ¯ ¯ ¯ Working Capital Quick Ratio Current Ratio Debt/Worth Debt/Tang Worth Net Income+Depr+AmortDivs/CPLTD Return on Assets (%) Return on Equity (%) Net Accounts Receivable Days Inventory Days on Hand Accounts Payable Days Total Assets Growth (%) Total Liabilities Growth (%) Net Worth Growth (%) Net Sales Growth (%) Net Profit Growth (%) ¯ Moody’s KMV Sample Reports ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 1,152 0.46 1.28 3.55 3.55 (1.90) 1,030 0.45 1.24 3.80 3.80 (2.18) 903 0.43 1.21 4.09 4.09 (2.45) 773 0.42 1.17 4.43 4.43 (2.72) 639 0.41 1.14 4.83 4.83 (2.99) 501 0.39 1.10 5.31 5.31 (3.27) 360 0.38 1.07 5.88 5.88 (3.54) (10.30) (44.63) 50.68 110.66 41.40 1.11 2.54 (3.36) (9.02) (11.03) (50.22) 50.68 110.59 41.37 1.09 2.55 (3.76) (8.28) (11.77) (56.51) 50.68 110.52 41.35 1.07 2.56 (4.21) (7.79) (12.47) (63.51) 50.68 110.45 41.32 1.05 2.56 (4.71) (7.09) (13.16) (71.48) 50.68 110.39 41.29 1.03 2.57 (5.27) (6.62) (13.83) (80.59) 50.68 110.32 41.27 1.00 2.56 (5.90) (6.09) (14.51) (91.48) 50.68 110.25 41.24 0.99 2.57 (6.65) (5.96) (15.16) (104.38) 50.68 110.18 41.22 0.97 2.57 (7.51) (5.52) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Page 88 Short-Term Projections: Executive FAS 95 Stmt of Cash Flows (Indirect) MMAS Sample Customer (MMASSample) Executive FAS 95 Stmt of Cash Flows (Indirect) Industry Classification: NAICS Code: 315228 Projection Title: Short Term Statement Date 6/30/2005 7/31/2005 Months Covered 12 1 Analyst GJH Stmt Type Annual CASH FLOWS FROM OPERATING ACTIVITIES: Net Income (369) Prepared: 18:15, 9/22/2005 Amounts Printed in: Thousands MMAS (3.1.6.0) 8/31/2005 9/30/2005 10/31/2005 11/30/2005 12/31/2005 1/31/2006 1 1 1 1 1 1 2/28/2006 3/31/2006 4/30/2006 5/31/2006 6/30/2006 6/30/2006 1 1 1 1 1 12 (40) (45) (50) (54) (59) (64) (69) (74) (79) (84) (89) (94) (801) 294 148 (446) (12) 159 59 202 (167) 29 (199) (74) (2) 32 1 (213) (253) 30 (14) (2) 5 1 20 (24) 31 (14) (2) 5 1 21 (28) 32 (13) (2) 5 1 22 (32) 32 (14) (2) 5 1 23 (37) 33 (14) (2) 5 1 23 (41) 34 (14) (2) 5 1 24 (45) 35 (14) (2) 5 1 25 (49) 35 (14) (2) 5 1 25 (54) 36 (13) (2) 5 1 26 (57) 37 (14) (3) 5 1 27 (62) 38 (14) (3) 5 1 28 (66) 402 (199) (226) (26) 87 12 51 (748) CASH FLOWS FROM INVESTING ACTIVITIES: Chg in Net Fixed Assets (1,094) Chg in Investments (4) (91) (1) (91) (1) (91) (1) (91) (1) (91) (1) (91) (1) (91) (1) (91) (1) (91) (1) (91) (1) (91) (1) (91) (1) (1,092) (12) Reconciling Items Non-Cash Items Non-Operating Income Chg in Net Receivables Chg in Deferred Revenue Chg in Inventories Chg in Prepaids/Deferreds Chg in Accounts Rec-Related Co Chg in Accts Payable-Trade & Othr Chg in Overdrafts Chg in Accruals Chg in Taxes Chg in Oper Assets and Liabilities Total Adjustments NET CASH PROV BY OPERATIONS ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ (1,098) (92) (92) (92) (92) (92) (92) (92) (92) (92) (92) (92) (92) (1,104) CASH FLOWS FROM FINANCING ACTIVITIES: Chg in Short Term Liabilities 395 Chg in Long Term Debt 855 Net Chg in Borrowings 1,250 Deferred Interest Expense Chg in Other ST and LT Liabilities Cash Dividends Paid Chg in Capital(Less Non-Cash) NET CASH PROV BY FINANCING 1,250 Chg in Currency Translation CHANGE IN CASH & (15) EQUIVALENTS 360 360 3 362 18 113 113 3 116 - 117 117 3 121 - 121 121 4 124 - 125 125 4 129 - 129 129 4 133 - 133 133 5 137 - 137 137 5 142 - 141 141 5 146 - 144 144 6 150 - 148 148 6 154 - 152 152 6 158 - 1,820 1,820 54 1,872 18 97 NET CASH USED IN INVESTING ¯ ¯ ¯ ¯ ¯ ¯ ADD:CASH AND EQUIVALENTS AT BOP CASH AND EQUIVALENTS AT EOP 90 75 93 93 94 94 94 95 95 96 96 97 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 75 93 93 94 94 94 95 95 96 96 97 97 97 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Moody’s KMV Sample Reports ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Page 89 Short-Term Projections: Credit Compliance Report MMAS Sample Customer (MMASSample) Prepared: 18:15, 9/22/2005 Credit Compliance Report Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Projection Title: Short Term Statement Date 6/30/2005 7/31/2005 8/31/2005 9/30/2005 10/31/2005 11/30/2005 12/31/2005 1/31/2006 2/28/2006 3/31/2006 4/30/2006 5/31/2006 6/30/2006 Months Covered 12 1 1 1 1 1 1 1 1 1 1 1 1 Stmt Type Annual USER-DEFINED COMPLIANCE Pro Forma EBITDA: Actual 2,929 Standard (Min) Variance 2,929 Result ¯ ¯ Moody’s KMV Sample Reports 232 228 224 400 400 232 (172) (176) DEFAULT DEFAULT ¯ ¯ ¯ 220 217 213 209 205 201 198 194 190 220 217 213 209 205 201 198 194 190 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Page 90 Short-Term Projections: Balance Sheet Account Assumptions MMAS Sample Customer (MMASSample) Prepared: 18:15, 9/22/2005 Balance Sheet Account Assumptions Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Projection Title: Short Term Statement Date 6/30/2005 7/31/2005 8/31/2005 9/30/2005 10/31/2005 11/30/2005 12/31/2005 1/31/2006 2/28/2006 3/31/2006 4/30/2006 5/31/2006 6/30/2006 Months Covered 12 1 1 1 1 1 1 1 1 1 1 1 1 Stmt Type Annual CURRENT ASSETS Cash Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales 75 (15) (16.67) 0.60 93 18 23.57 0.71 93 0.47 0.72 94 0.47 0.72 94 0.45 0.72 94 0.46 0.73 95 0.46 0.73 95 0.46 0.73 96 0.45 0.74 96 0.45 0.74 97 0.44 0.74 97 0.46 0.75 97 0.44 0.75 1,698 (144) (7.82) 13.67 49.90 1,902 204 12.02 14.61 53.33 1,902 14.61 53.33 1,902 14.61 53.33 1,902 14.61 53.33 1,902 14.61 53.33 1,902 14.61 53.33 1,902 14.61 53.33 1,902 14.61 53.33 1,902 14.61 53.33 1,902 14.61 53.33 1,902 14.61 53.33 1,902 14.61 53.33 Bad Debt Reserve (-) Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales 90 4 4.65 0.72 95 5 5.07 0.73 95 0.73 95 0.73 95 0.73 95 0.73 95 0.73 95 0.73 95 0.73 95 0.73 95 0.73 95 0.73 95 0.73 Inventory Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales Days On Hand 3,056 446 17.09 24.61 114.51 3,130 74 2.42 24.04 110.96 3,144 14 0.44 24.15 110.88 3,158 14 0.44 24.26 110.81 3,171 13 0.43 24.36 110.74 3,185 14 0.44 24.47 110.66 3,199 14 0.44 24.57 110.59 3,213 14 0.43 24.68 110.52 3,227 14 0.43 24.79 110.45 3,241 14 0.43 24.89 110.39 3,254 13 0.42 25.00 110.32 3,268 14 0.43 25.11 110.25 3,282 14 0.43 25.21 110.18 Prepaid Expenses Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales 131 12 10.08 1.05 133 2 1.63 1.02 135 2 1.63 1.04 138 2 1.63 1.06 140 2 1.63 1.07 142 2 1.63 1.09 144 2 1.63 1.11 147 2 1.63 1.13 149 2 1.63 1.15 152 2 1.63 1.16 154 2 1.63 1.18 156 3 1.63 1.20 159 3 1.63 1.22 Accts/Notes Rec-Trade Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales Days On Hand (Gross Receivables) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ NON-CURRENT ASSETS Property Plant & Equipment Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales ¯ 2,957 946 47.04 23.81 3,016 59 1.98 23.17 3,092 76 2.52 23.75 3,167 76 2.45 24.33 3,243 76 2.40 24.92 3,319 76 2.34 25.50 3,395 76 2.29 26.08 3,471 76 2.24 26.66 3,547 76 2.19 27.25 3,623 76 2.14 27.83 3,699 76 2.09 28.41 3,775 76 2.05 29.00 3,850 76 2.01 29.58 Furniture, Fixtures & Vehicles Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales 568 147 34.92 4.57 600 32 5.69 4.61 615 15 2.52 4.73 631 15 2.45 4.84 646 15 2.40 4.96 661 15 2.34 5.08 676 15 2.29 5.19 691 15 2.24 5.31 706 15 2.19 5.42 721 15 2.14 5.54 736 15 2.09 5.66 751 15 2.05 5.77 767 15 2.01 5.89 Gross Fixed Assets (excl Land) Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period 3,525 1,093 44.94 3,616 91 2.58 3,707 91 2.52 3,798 91 2.45 3,889 91 2.40 3,980 91 2.34 4,071 91 2.29 4,162 91 2.24 4,253 91 2.19 4,344 91 2.14 4,435 91 2.09 4,526 91 2.05 4,617 91 2.01 Moody’s KMV Sample Reports Page 91 MMAS Sample Customer (MMASSample) Prepared: 18:15, 9/22/2005 Balance Sheet Account Assumptions Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Projection Title: Short Term Statement Date 6/30/2005 7/31/2005 8/31/2005 9/30/2005 10/31/2005 11/30/2005 12/31/2005 1/31/2006 2/28/2006 3/31/2006 4/30/2006 5/31/2006 6/30/2006 Months Covered 12 1 1 1 1 1 1 1 1 1 1 1 1 Stmt Type Annual Beg Accumulated Depreciation Plus: Depreciation Expense Purchase/Sale of Assets Ending Accumulated Depreciation 1,912 294 (1) 2,205 2,205 29 2,234 2,234 30 2,264 2,264 31 2,295 2,295 32 2,327 2,327 32 2,359 2,359 33 2,392 2,392 34 2,426 2,426 35 2,461 2,461 35 2,496 2,496 36 2,532 2,532 37 2,569 2,569 38 2,607 293 15.32 17.76 62.55 29 1.33 17.16 61.79 30 1.35 17.40 61.09 31 1.36 17.63 60.44 32 1.38 17.88 59.83 32 1.39 18.12 59.28 33 1.40 18.38 58.77 34 1.42 18.64 58.30 35 1.43 18.90 57.86 35 1.44 19.18 57.46 36 1.45 19.45 57.10 37 1.46 19.74 56.77 38 1.46 20.03 56.46 Cash Value Life Insurance Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales 22 2 10.00 0.18 22 1.63 0.17 23 1.63 0.17 23 1.63 0.18 23 1.63 0.18 24 1.63 0.18 24 1.63 0.19 25 1.63 0.19 25 1.63 0.19 25 1.63 0.20 26 1.63 0.20 26 1.63 0.20 27 1.63 0.21 Other Assets Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales 22 2 10.00 0.18 22 1.63 0.17 23 1.63 0.17 23 1.63 0.18 23 1.63 0.18 24 1.63 0.18 24 1.63 0.19 25 1.63 0.19 25 1.63 0.19 25 1.63 0.20 26 1.63 0.20 26 1.63 0.20 27 1.63 0.21 ¯ Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales % of Gross Fixed Assets (excl Land) ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ CURRENT LIABILITIES Note Payable - Bank Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales 1,475 341 30.07 11.88 1,475 11.33 1,475 11.33 1,475 11.33 1,475 11.33 1,475 11.33 1,475 11.33 1,475 11.33 1,475 11.33 1,475 11.33 1,475 11.33 1,475 11.33 1,475 11.33 CPLTD-Bank Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales % of Long Term Debt Accounts 169 54 46.96 1.36 12.55 169 1.30 12.55 169 1.30 12.55 169 1.30 12.55 169 1.30 12.55 169 1.30 12.55 169 1.30 12.55 169 1.30 12.55 169 1.30 12.55 169 1.30 12.55 169 1.30 12.55 169 1.30 12.55 169 1.30 12.55 Accounts Payable-Trade Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales Days On Hand 1,139 159 16.22 9.17 42.68 1,171 32 2.80 8.99 41.51 1,176 5 0.44 9.03 41.48 1,181 5 0.44 9.07 41.45 1,186 5 0.43 9.11 41.42 1,192 5 0.44 9.15 41.40 1,197 5 0.44 9.19 41.37 1,202 5 0.43 9.23 41.35 1,207 5 0.43 9.27 41.32 1,212 5 0.43 9.31 41.29 1,217 5 0.42 9.35 41.27 1,223 5 0.43 9.39 41.24 1,228 5 0.43 9.43 41.22 Accrued Expenses Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales 281 59 26.58 2.26 282 1 0.39 2.17 283 1 0.39 2.18 284 1 0.39 2.18 285 1 0.39 2.19 287 1 0.39 2.20 288 1 0.39 2.21 289 1 0.39 2.22 290 1 0.39 2.23 291 1 0.39 2.24 292 1 0.39 2.24 293 1 0.39 2.25 295 1 0.39 2.26 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Moody’s KMV Sample Reports Page 92 MMAS Sample Customer (MMASSample) Prepared: 18:15, 9/22/2005 Balance Sheet Account Assumptions Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Projection Title: Short Term Statement Date 6/30/2005 7/31/2005 8/31/2005 9/30/2005 10/31/2005 11/30/2005 12/31/2005 1/31/2006 2/28/2006 3/31/2006 4/30/2006 5/31/2006 6/30/2006 Months Covered 12 1 1 1 1 1 1 1 1 1 1 1 1 Stmt Type Annual NON-CURRENT LIABILITIES Long Term Debt Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales ¯ EQUITY Common Stock Actual Incr (Decr) Over Prior % Incr (Decr) Over Prior Period % of Net Sales ¯ Moody’s KMV Sample Reports 1,347 855 173.78 10.85 1,347 10.35 1,347 10.35 1,347 10.35 1,347 10.35 1,347 10.35 1,347 10.35 1,347 10.35 1,347 10.35 1,347 10.35 1,347 10.35 1,347 10.35 1,347 10.35 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ 17 0.14 17 0.13 17 0.13 17 0.13 17 0.13 17 0.13 17 0.13 17 0.13 17 0.13 17 0.13 17 0.13 17 0.13 17 0.13 ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Page 93 Short-Term Projections: Quick Projection Variables MMAS Sample Customer (MMASSample) Prepared: 18:15, 9/22/2005 Quick Projection Variables Amounts Printed in: Thousands Industry Classification: NAICS Code: 315228 MMAS (3.1.6.0) Projection Title: Short Term Statement Date 6/30/2005 7/31/2005 8/31/2005 9/30/2005 10/31/2005 11/30/2005 12/31/2005 1/31/2006 2/28/2006 3/31/2006 4/30/2006 5/31/2006 6/30/2006 Months Covered 12 1 1 1 1 1 1 1 1 1 1 1 1 Stmt Type Annual Annual Sales Growth (%) 4.82 4.82 - - - - - - - - - - - Gross Margin (plus Depr) (%) 23.76 23.42 23.08 22.74 22.41 22.07 21.73 21.39 21.05 20.71 20.38 20.04 19.70 Operating Expense (excl Depr) (%) 22.18 22.30 22.42 22.55 22.67 22.79 22.91 23.04 23.16 23.28 23.40 23.53 23.65 Net Accounts Receivable Days 47.26 50.68 50.68 50.68 50.68 50.68 50.68 50.68 50.68 50.68 50.68 50.68 50.68 Inventory Days on Hand (excl Depr) 117.81 114.60 114.60 114.60 114.60 114.60 114.60 114.60 114.60 114.60 114.60 114.60 114.60 Accounts Payable Days (excl Depr) 43.91 42.87 42.87 42.87 42.87 42.87 42.87 42.87 42.87 42.87 42.87 42.87 42.87 0.61 0.72 0.72 0.72 0.72 0.72 0.72 0.72 0.72 0.72 0.72 0.72 0.72 Capital Spending 1,093 91 91 91 91 91 91 91 91 91 91 91 91 Misc Balance Sheet Growth Rate 21.40 5.70 1.19 1.16 1.13 1.11 1.09 1.07 1.05 1.03 1.00 0.99 0.97 Misc Income Statement Growth Rate 4.82 4.82 - - - - - - - - - - - Depreciation Rate (%) 9.87 9.87 9.87 9.87 9.87 9.87 9.87 9.87 9.87 9.87 9.87 9.87 9.87 Depreciation Rate to Accumulated (%) 9.87 9.87 9.87 9.87 9.87 9.87 9.87 9.87 9.87 9.87 9.87 9.87 9.87 Effective Tax Rate (%) - 14.60 14.60 14.60 14.60 14.60 14.60 14.60 14.60 14.60 14.60 14.60 14.60 Dividend Payout Rate (%) - 6.59 6.59 6.59 6.59 6.59 6.59 6.59 6.59 6.59 6.59 6.59 6.59 Interest Expense Rate (%) 12.93 12.20 11.35 10.98 10.62 10.27 9.94 9.61 9.30 9.00 8.71 8.44 8.17 - - - - - - - - - - - - - ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ ¯ Cash/(SG&A + COGS) (%) Interest Income Rate (%) ¯ Moody’s KMV Sample Reports Page 94 FINANCIAL PACKAGE REPORTS MISCELLANEOUS REPORTS Miscellaneous reports are those reports not associated with historicals or projections. The following sample Miscellaneous reports are available in this document: • Chart of Accounts: This report details the Chart of Accounts available in the RiskAnalyst General Business Financial Template (MMAS). The Chart of Accounts represents all of the standard data input items. In Moody’s KMV Financial Analyst, you can customize the standard Chart of Accounts for each borrower’s financial statements by adding and relabeling accounts as necessary. • User-Defined Analyses: User-Defined Analyses are unique calculations that are designed for each customer. The User-Defined Analyses report lists all the user-defined analyses that have been created for the customer. • Added and Relabeled Accounts: This report details the accounts that have been added and relabeled for the customer. In addition to the sample Miscellaneous Reports shown in this document, the following report is also available: • Customer List: The Customer List report lists all customers available in a specific directory. The report lists the customers' short name, customer name, model, and group. Moody’s KMV Sample Reports Page 95 Chart of Accounts Chart of Accounts MMAS Account 100 Annual Sales Growth (%) 150 Gross Margin (plus Depr) (%) 200 Operating Expense (excl Depr) (%) 250 Net Accounts Receivable Days 300 Inventory Days on Hand (excl Depr) 350 Accounts Payable Days (excl Depr) 400 Cash/(SG&A + COGS) (%) 450 Capital Spending 550 Misc Balance Sheet Growth Rate (%) 600 Misc Income Statement Growth Rate (%) 650 Depreciation Rate (%) 670 Depreciation Rate to Accumulated (%) 700 Effective Tax Rate (%) 750 Dividends Payout Rate (%) 800 Interest Expense Rate (%) 850 Interest Income Rate (%) 940 Total Accounts Receivable (AR) 960 Less: Intracompany AR 970 Less: Holdback/Retainage 980 Less: Concentrations 990 Less: Government and Other 1000 Less: AR over XXX days past due 1020 AR Advance Rate (%) 1050 Cash 1100 Time Deposits 1150 Marketable Securities 1200 Accts/Notes Rec-Trade 1300 Bad Debt Reserve (-) 1230 Loans to Related Co - CP 1240 Due from Related Co - CP 1250 Accts/Notes Rec-Other 1670 Income Tax Receivable 1680 Def Inc Tax Recover - CP 1400 Raw Materials 1450 Work in Process 1500 Inventory 1550 Other Inventory 1600 Supplies 1650 Costs in Excess of Billings 1350 Operating Current Assets 1700 Prepaid Expenses 1750 Operating Current Assets 1790 Derivative Assets - CP 1800 Non-Op Current Assets 1810 Memo - 0 Decimals 1850 LIFO Reserve 1900 Off Bal Sheet Cur Assets 1820 Memo - 2 Decimals 1830 Footnote - Current Assets 2050 Land 2070 Construction in Progress 2100 Property Plant & Equipment 2150 Furniture, Fixtures & Vehicles 2200 Furniture & Fixtures 2250 Leasehold Improvements 2300 Transportation Equipment 2350 Capital Leases 2400 Accumulated Deprec (-) 2450 Accts/Notes Rec-Long Term 2500 Accts/Notes Rec-Offcr/Stkh 2530 Cash Value Life Insurance 2550 Investment in Subsidiaries 2560 Loans to Related Co - LTP 2600 Other Investments 2650 Prepaids/Deferreds - LTP 2800 Operating Non-Cur Assets 2700 Def Inc Tax Recover - LTP 2740 Derivative Assets - LTP 2750 Other Assets 2850 Intangibles - Goodwill 2900 Intangibles - Other Moody’s KMV Sample Reports Prepared: 18:05, 9/22/2005 Class Type Flow 2 245 145 2 245 145 2 245 145 2 245 145 2 245 145 2 245 145 2 245 145 2 244 145 2 245 145 2 245 145 2 245 145 2 245 145 2 245 145 2 245 145 2 245 145 2 245 145 50 248 140 50 250 140 50 250 140 50 250 140 50 250 140 50 250 140 50 252 140 5 5 5 5 5 5 5 7 7 5 10 15 5 11 20 5 13 81 5 13 15 5 12 80 5 25 65 5 25 65 5 15 25 5 16 25 5 17 25 5 20 35 5 20 35 5 27 30 5 30 50 5 30 40 5 30 50 5 35 80 5 35 80 5 215 135 5 216 135 5 217 135 5 220 135 5 212 135 10 39 90 10 38 90 10 40 90 10 40 90 10 40 90 10 40 90 10 40 90 10 40 90 10 45 95 10 50 80 10 50 80 10 55 80 10 55 80 10 55 80 10 55 80 10 62 40 10 60 50 10 25 65 10 65 80 10 65 80 10 70 100 10 70 100 Page 96 Chart of Accounts MMAS Account 2820 Accumulated Amort (-) 2910 Memo - 0 Decimals 2940 Off Bal Sheet Non-Cur Assets 2920 Memo - 2 Decimals 2930 Footnote - Non-Cur Assets 3050 Overdrafts (Book) 3070 Overdrafts (Financing) 3100 Note Payable - Bank 3150 ST Loans Payable-Other 3200 CPLTD-Bank 3250 CPLTD-Other Secured 3300 CPLTD-Other Unsecured 3350 CP-Capital Lease Obligatns 3370 CP-Subordinated Debt 3400 Accounts Payable-Trade 3450 Loans from Related Co - CP 3460 Due to Related Co - CP 3500 Accounts Pay-Other 3600 Interest Payable 3650 Dividends Payable 3550 Wages/Salaries Payable 3700 P/S Plan Contribution 3750 Bonuses Payable 3800 Accrued Expenses 3920 Other Taxes Payable 3850 Billings in Excess of Costs 3900 Income Taxes Payable 3910 Deferred Fed Inc Tax - CP 3960 Acr'd Post Retrmt Benfts-CP 3970 Operating Current Liabs 3940 Derivative Liabilities - CP 3950 Non-Op Current Liabs 3980 Memo - 0 Decimals 4010 Off Bal Sheet Cur Liabs 3990 Memo - 2 Decimals 4000 Footnote - Current Liabs 4050 Long Term Debt 4100 Long Term Debt-Other Sec 4150 Long Term Debt-Other Unsec 4220 Deferred Debt 4230 Deferred Interest 4200 Capital Lease Obligations 4390 Derivative Liabilities - LTP 4400 Non-Op Non-Cur Liabs 4250 Loans from Officers/Stkhldrs 4300 Loans from Related Co - LTP 4330 Deferred Revenue 4340 Acr'd Post Rtrmt Benfts-LTP 4350 Operating Non-Cur Liabs 4450 Deferred Fed Inc Tax - LTP 4600 Subordinated Debt-Liab 4660 Subord Deferred Debt-Liab 4680 Subord Deferred Int-Liab 4700 Minority Interest-Liab 4800 Other Liabilities-Gray Area 4460 Memo - 0 Decimals 4490 Off Bal Sheet Non-Cur Liabs 4470 Memo - 2 Decimals 4860 Memo - 0 Decimals 4870 Memo - 2 Decimals 4480 Footnote - Non-Cur Liabs 4880 Footnote - Other Liab 4650 Subordinated Debt-Equity 4670 Subord Deferred Debt-Equity 4690 Subord Deferred Int-Equity 4750 Minority Interest-Equity 4850 Other Equity-Gray Area 5050 Preferred Stock 5100 Common Stock 5150 Paid In Capital 5200 Other Equity Moody’s KMV Sample Reports Prepared: 18:05, 9/22/2005 Class Type Flow 10 71 120 10 215 135 10 217 135 10 220 135 10 212 135 15 72 37 15 73 105 15 75 105 15 75 105 15 80 75 15 80 75 15 80 75 15 80 75 15 81 75 15 85 25 15 87 106 15 87 25 15 87 27 15 91 70 15 92 130 15 90 35 15 90 35 15 90 35 15 90 35 15 90 35 15 102 15 15 95 65 15 95 65 15 100 50 15 100 50 15 105 106 15 105 106 15 215 135 15 218 135 15 220 135 15 212 135 20 110 125 20 110 125 20 110 125 20 110 107 20 110 107 20 112 125 20 125 105 20 125 105 20 127 105 20 127 105 20 126 15 20 126 50 20 126 50 20 115 65 22 120 105 22 120 108 22 120 108 22 122 106 22 122 106 20 215 135 20 218 135 20 220 135 22 215 135 22 220 135 20 212 135 22 212 135 22 134 102 22 134 109 22 134 109 22 135 102 22 135 102 25 129 102 25 130 102 25 131 102 25 131 102 Page 97 Chart of Accounts MMAS Account 5250 Other Equity 5420 Currency Translation 5400 Retained Earnings 5410 Accumulated OCI 5450 Treasury Stock (-) 5460 Memo - 0 Decimals 5470 Memo - 2 Decimals 5480 Footnote - Net Worth 4900 AR Borrowing Base Cap 4920 Senior Liens on Accounts Receivable 4940 Raw Materials 4950 Raw Materials Advance Rate (%) 4970 Work in Process 4980 Work in Process Advance Rate (%) 5000 Finished Goods 5010 Finished Goods Advance Rate (%) 5520 Inventory Borrowing Base Cap 5540 Senior Liens on Inventory 5560 Orders on Hand 5630 Less: Ineligible Orders 5640 Orders Advance Rate (%) 5650 Orders on Hand Cap 5700 Maximum Loan Amount 5720 Current Balance on Loan 5740 Current Overdraft (if any) 5760 Accounts Payable Offset 6050 Net Sales - Manufacturing Division 6070 Net Sales - Catalog Division 6100 Sales/Revenues 6150 Returns & Allowances (-) 6200 Discounts (-) 6250 Cost of Goods Sold 6270 Cost of Sales/Revenues 6300 Cost of Sales/Revenues 6350 Cost of Goods Sold - Depreciation 6400 Other Operating Income (+) 6420 Selling Expense 6450 SG & A Expense 6470 Other Gen & Admin Expense 6490 Post Retirement Benefit Expense 6500 Operating Expense 6550 Officers' Compensation 6560 Personnel Expense 6570 Lease/Rent Expense 6600 Depreciation 6650 Amortization 6580 Research & Development 6700 Bad Debt Expense 6750 Other Operating Expense 7530 Dividends - ESOP Trust 6850 Interest Expense (-) 6870 Deferred Interest Expense (-) 6880 Capitalized Interest 6800 Interest Income 6900 Income from Subs/Joint Ventures 7000 Non-Cash Income 7010 Non-Cash Expense (-) 7040 Gain on Derivatives 7050 Other Income 7090 Loss on Derivatives (-) 7100 Other Expense (-) 7120 Commitment Fees (-) 7150 Gain(Loss) on Asset Sale 7250 Current Income Tax 7300 Deferred Income Tax 7320 Income Tax Credit (+) 7230 Minority Interest 7200 Extraordinary Gain(Loss) 7350 After Tax Income 7400 After Tax Expense (-) 7470 Cumulative Effect of Acct'g Chg Moody’s KMV Sample Reports Prepared: 18:05, 9/22/2005 Class Type Flow 25 131 102 25 133 5 25 140 103 25 141 118 25 132 105 25 215 135 25 220 135 25 212 135 50 254 140 50 256 140 50 258 140 50 252 140 50 260 140 50 252 140 50 262 140 50 252 140 50 264 140 50 266 140 50 268 140 50 270 140 50 252 140 50 272 140 50 274 140 50 276 140 50 278 140 50 280 140 30 145 15 30 145 15 30 145 15 30 147 20 30 147 20 30 150 25 30 150 25 30 150 25 30 152 95 30 157 45 30 156 55 30 156 55 30 156 55 30 156 55 30 155 35 30 158 35 30 155 35 30 159 35 30 160 95 30 162 120 30 155 35 30 155 21 30 155 35 30 207 35 30 170 70 30 170 107 30 171 91 30 165 85 30 182 110 30 175 60 30 176 61 30 180 87 30 180 87 30 185 115 30 185 115 30 185 115 30 184 90 30 190 65 30 190 65 30 192 66 30 196 104 30 195 88 30 195 88 30 200 116 30 197 67 Page 98 Chart of Accounts MMAS Account 7480 After Tax Non-Cash Inc(Exp) 7450 Dividends - Stock 7500 Dividends - Preferred 7520 Dividends - Common 7550 Withdrawals 7600 Prior Period Adjustments 7650 Adj to Retained Earnings 7540 Memo - 0 Decimals 7660 Memo - 2 Decimals 7670 Footnote - Income/Expense 7700 Unreal Gain/(Loss) on Mark Sec 7720 OCI Foreign Currency Translation 7740 Minimum Pension Liab Adj 7760 Other OCI Adjustment 7780 Deferred Hedging Gain/(Loss) 7790 Derivatives - FMV Adjustment 8000 Min Working Capital 8050 Min Current Ratio 8100 Min Quick Ratio 8150 Max Debt to Tangible Worth 8170 Min Interest Coverage 8200 Min Net Income+Depr+AmortDivs/CPLTD 8250 Max Capital Expenditures 8300 Min Net Margin 8350 Min Return on Equity 8400 Min Return on Assets 8450 Max Net Accounts Receivable Days 8500 Max Inventory Days 8550 Max Accounts Payable Days 8600 Max Officers' Compensation 8650 Max Lease/Rent Expense 8700 Max Cash Dividends & Withdrawals 8750 Max Subordinated Debt Payment 8800 Max New Debt 8850 Min Tangible Net Worth 8880 Min Cash Balance 8900 Max Sales Growth (%) 9000 Prime Rate 9050 LIBOR 9100 Money Market 9150 Market Value of Equity 9160 Non-Op Income from Above 9200 Proceeds from Asset Sales 9210 Capital Expenditures 9230 Capitalized Interest 9250 Proceeds from ST/LT Borrowings 9270 Principal Pmts on ST and LTD 9300 Total Line of Credit 9320 Unused Portion-Line of Credit 9500 SIC Code 9600 Projected Interest Expense 9650 Projected Interest Income 9700 Proj Int Exp - Def Debt Amort 9750 Percent Cash Sales 9760 Footnote - Statistics 9850 Adjustments to Intangibles 9900 Contingent Liabilities 9950 Exchange Rate Moody’s KMV Sample Reports Prepared: 18:05, 9/22/2005 Class Type Flow 30 197 67 32 205 102 32 208 130 32 206 130 32 206 130 32 210 103 32 210 103 30 215 135 30 220 135 30 212 135 31 201 117 31 201 117 31 201 117 31 201 117 31 201 117 31 201 117 40 230 135 40 235 135 40 235 135 40 235 135 40 235 135 40 235 135 40 40 40 40 40 40 40 40 40 40 40 40 40 40 40 35 35 35 35 35 35 35 35 35 35 35 35 35 30 30 30 35 35 35 35 35 230 235 235 235 235 235 235 230 230 230 230 230 230 230 235 240 240 240 215 215 215 215 215 215 215 215 215 219 170 165 170 220 212 222 215 221 135 135 135 135 135 135 135 135 135 135 135 135 135 135 135 135 135 135 135 135 96 97 98 76 77 135 135 135 70 85 107 135 135 135 135 135 Page 99 User-Defined Analyses User-Defined Analyses Customer: MMAS Sample Customer Name: Pro Forma EBITDA Print On Reports: Yes Decimal Places: 0 Round Protect: No Credit Compliance: Yes Date Value 6/30/2001 400 6/30/2002 400 6/30/2003 400 6/30/2004 400 6/30/2005 400 Compliance Is Minimum: Yes Formula: MacroValue=FE.MACRO(M.GROSS_PROFIT)FE.MACRO(M.OPERATING_EXP_EXCL_DEPR_TO_SALES)+FE.ACCOUNT(A.CostofSalesDepreciation) Prepared: 18:05, 9/22/2005 Added and Relabeled Accounts Added and Relabeled Accounts Customer: MMAS Sample Customer Original Name New Name Added Accounts Relabeled Accounts Finished Goods Inventory Prepaids/Deferreds - CP Prepaid Expenses Buildings & Improvements Property Plant & Equipment Machinery & Equipment Furniture, Fixtures & Vehicles Non-Op Non-Cur Assets Other Assets ST Loans Payable-Bank Note Payable - Bank Other Accruals Accrued Expenses Long Term Debt-Bank Long Term Debt Sales/Revenues Net Sales - Manufacturing Division Sales/Revenues Net Sales - Catalog Division Cost of Sales/Revenues Cost of Goods Sold Cost of Sales - Depreciation Cost of Goods Sold - Depreciation General & Admin Expense SG & A Expense Moody’s KMV Sample Reports Prepared: 18:05, 9/22/2005 Class Type Flow Current Assets Current Assets Non-Current Assets Non-Current Assets Non-Current Assets Current Liabilities Current Liabilities Non-Current Liabilities Income/Expenses Income/Expenses Income/Expenses Income/Expenses Income/Expenses Inventory-Fin Good Op Current Asset Gross Fixed Assets Gross Fixed Assets Non-Op Non-Cur Asset Short Term Payables Accrued Liabilities Long Term Debt Sales Sales Cost of Sales Cost of Sales-Deprec SG & A Expense Purchases Prepaids Fixed Assets Fixed Assets Investments Financings Operating Expenses LT Financings Revenue Revenue Purchases Depreciation SG & A Expense Page 100 RATINGS PACKAGE REPORTS Ratings Package Reports include both Customer and Explanation reports. These reports display information on the assessment of a customer by the internal rating model. The various reports cover Borrower Rating or scorecard score, facility or LGD analysis, and the history of customer archives. Each report reproduces information available in the scorecard, facility, and archive functionality within RiskAnalyst. In addition to the sample Ratings Package Reports shown in this document, the following report is also available: • Archive History Moody’s KMV Sample Reports Page 101 Ratings Summary Durawear Limited, Inc. (2005) (DWLMMAS) Ratings Summary Industry Classification: NAICS Code: 315228 Scorecard Name: Source Currency: Target Currency: User Name: Prepared: 09:12, 10/14/2005 Amounts Printed in: Thousands SYSTEMREPORTS (3.1.8.0) Middle Market MMAS USD United States Dollars USD United States Dollars John Baer Scorecard Summary Section Weighted Score Historical Ratio Assessments Balance Sheet Factors Industry / Market Company Management Total Grade Equivalent PD 1 Yr EDF 5 2.06 % 4.26 Facilities Summary: Committed EAD 3100.00 LGD 37.81 % Facility Grade C EL% 1.61 % LGD 59.04 % Facility Grade E EL% 2.52 % Facilities Summary: Proposed EAD 7225.00 Moody’s KMV Sample Reports Page 102 Scorecard Detail Durawear Limited, Inc. (2005) (DWLMMAS) Scorecard Detail Industry Classification: NAICS Code: 315228 Scorecard Name: Source Currency: Target Currency: User Name: Prepared: 09:12, 10/14/2005 Amounts Printed in: Thousands SYSTEMREPORTS (3.1.8.0) Middle Market MMAS USD United States Dollars USD United States Dollars John Baer Section Name: Historical Ratio Assessments Factor Operations Net Profit before Tax / TA Net Profit before Tax / Sales Net profit before Tax / TNW Net Sales Growth Gross Margin Operating Profit Margin Breakeven Sales Realization Debt Service Earnings Coverage Cash Flow Coverage Liquidity Accounts Payable Days Accounts Receivable Days Quick Inventory Days Capital Structure Debt / Tangible Net Worth Borrowed Funds / EBITDA Borrowed Funds / Effective TNW Section Total Value 14 9 12 87 41 19 37 10 40 50 98 30 63 64 4 60 Section Name: Balance Sheet Factors Factor Audit Method Operations Growth Funding Liquidity Inventory Valuation Debtor Risk Capital Structure Debt Repayment Owner Support (% of Existing Facilities) Intrinsic Full Value of Intangibles Section Total Value Unqualified Poor Auditor Present Average Spread / Good Quality Tight Spread < 10% Negligible Section Name: Industry / Market Factor Industry Industry Type Market Market Conditions Customer Power Diversification of Products Competitive Positioning Section Total Value Manufacturing - Miscellaneous Industries Neutral Some Many Products, Narrow Market Neutral Section Name: Company Factor Years in Relationship Business Stage Quality Management Supplier Power Credit History Conduct of Account Section Total Moody’s KMV Sample Reports Value > 2 Years Stable - Mature Exceeds Industry Standards Some Clear Good Page 103 Section Name: Management Factor Experience in Industry Financial Reporting and Formal Planning Risk Management Openness Risk Appetite Management Style and Structure Section Total Value > 20 years Appropriate Planning and Reporting Pro-active Meets Expectations Balanced Adequate Scorecard Summary Section Weighted Score Historical Ratio Assessments Balance Sheet Factors Industry / Market Company Management Total Grade Equivalent PD 1 Yr EDF Moody’s KMV Sample Reports 5 2.06 % 4.26 Page 104 Facility Summary – Committed Durawear Limited, Inc. (2005) (DWLMMAS) Facility Summary - Committed Industry Classification: NAICS Code: 315228 Source Currency: USD United States Dollars Target Currency: USD United States Dollars Borrower Grade: 5 Borrower PD: 2.06 % 1 Yr EDF 4.26 Facility Grade: C Total EAD 3100.00 Facility: OD1 Type Overdraft Aggregate LGD% 37.81 % EAD 1500.00 Seniority Senior Prepared: 09:12, 10/14/2005 Amounts Printed in: Thousands SYSTEMREPORTS (3.1.8.0) Total LGD 1172.08 Guaranteed Yes Aggregate EL% 1.61 % LGD% 37.81 % Facility Grade C Total EL 49.94 EL% 1.61 % LGD by Portion Valuation 3100.00 8279.00 Guaranteed Collateralized Unsecured Non-Guaranteed Facility: TL1 Type Term Loan EAD 1600.00 Seniority Senior Eligible Amount 0.00 1500.00 0.00 1500.00 Guaranteed Yes LGD% 0.00 % 37.81 % 45.00 % 37.81 % LGD% 37.81 % LGD Amount 0.00 567.14 0.00 567.14 Facility Grade C EL% 1.61 % LGD by Portion Guaranteed Collateralized Unsecured Non-Guaranteed Moody’s KMV Sample Reports Valuation 3100.00 8279.00 Eligible Amount 0.00 1600.00 0.00 1600.00 LGD% 0.00 % 37.81 % 45.00 % 37.81 % LGD Amount 0.00 604.94 0.00 604.94 Page 105 Facility Summary – Proposed Durawear Limited, Inc. (2005) (DWLMMAS) Facility Summary - Proposed Industry Classification: NAICS Code: 315228 Source Currency: USD United States Dollars Target Currency: USD United States Dollars Borrower Grade: 5 Borrower PD: 2.06 % 1 Yr EDF 4.26 Facility Grade: E Total EAD 7225.00 Facility: OD1 Type Overdraft Aggregate LGD% 59.04 % EAD 1500.00 Seniority Senior Prepared: 09:12, 10/14/2005 Amounts Printed in: Thousands SYSTEMREPORTS (3.1.8.0) Total LGD 4265.83 Guaranteed Yes Aggregate EL% 2.52 % LGD% 37.81 % Facility Grade C Total EL 181.74 EL% 1.61 % LGD by Portion Valuation 3100.00 8279.00 Guaranteed Collateralized Unsecured Non-Guaranteed Facility: RLC 1 Type Revolving Line of Credit EAD 4125.00 Seniority Subordinated Eligible Amount 0.00 1500.00 0.00 1500.00 Guaranteed No LGD% 0.00 % 37.81 % 45.00 % 37.81 % LGD% 75.00 % LGD Amount 0.00 567.14 0.00 567.14 Facility Grade F EL% 3.20 % LGD by Portion Valuation 0.00 Collateralized Unsecured Non-Guaranteed Facility: TL1 Type Term Loan EAD 1600.00 Seniority Senior Eligible Amount 0.00 4125.00 4125.00 Guaranteed Yes LGD% 0.00 % 75.00 % 75.00 % LGD% 37.81 % LGD Amount 0.00 3093.75 3093.75 Facility Grade C EL% 1.61 % LGD by Portion Guaranteed Collateralized Unsecured Non-Guaranteed Moody’s KMV Sample Reports Valuation 3100.00 8279.00 Eligible Amount 0.00 1600.00 0.00 1600.00 LGD% 0.00 % 37.81 % 45.00 % 37.81 % LGD Amount 0.00 604.94 0.00 604.94 Page 106 Facility Details – Committed Durawear Limited, Inc. (2005) (DWLMMAS) Facility Details - Committed Industry Classification: NAICS Code: 315228 Source Currency: USD United States Dollars Target Currency: USD United States Dollars Borrower Grade: 5 Borrower PD: 2.06 % 1 Yr EDF 4.26 Facility Grade: C Total EAD 3100.00 Facility: OD1 Type Overdraft Guarantees ID PG1 Prepared: 09:12, 10/14/2005 Amounts Printed in: Thousands SYSTEMREPORTS (3.1.8.0) Aggregate LGD% 37.81 % EAD 1500.00 Total LGD 1172.08 Seniority Senior Aggregate EL% 1.61 % Guaranteed Yes Type Personal Eligible Amount 0.00 Type Receivables (Less Than 1 Year) - Not Affiliate Plant and Equipment (excl Leasehold Improvements) Inventory - Not Inspected LGD% 37.81 % PD 3.20 % Facility Grade C Total EL 49.94 EL% 1.61 % LGD% 0.00 % LGD Amount 0.00 Eligible Amount 657.29 LGD% 35.00 % LGD Amount 230.05 842.71 40.00 % 337.08 0.00 40.00 % 0.00 Collateral ID Rec1 PE1 Inv1 Facility: TL1 Type Term Loan Guarantees ID PG1 EAD 1600.00 Seniority Senior Guaranteed Yes Type Personal Eligible Amount 0.00 Type Receivables (Less Than 1 Year) - Not Affiliate Plant and Equipment (excl Leasehold Improvements) Inventory - Not Inspected LGD% 37.81 % PD 3.20 % Facility Grade C EL% 1.61 % LGD% 0.00 % LGD Amount 0.00 Eligible Amount 701.11 LGD% 35.00 % LGD Amount 245.39 898.89 40.00 % 359.56 0.00 40.00 % 0.00 Collateral ID Rec1 PE1 Inv1 Moody’s KMV Sample Reports Page 107 Facility Details – Proposed Durawear Limited, Inc. (2005) (DWLMMAS) Facility Details - Proposed Industry Classification: NAICS Code: 315228 Source Currency: USD United States Dollars Target Currency: USD United States Dollars Borrower Grade: 5 Borrower PD: 2.06 % 1 Yr EDF 4.26 Facility Grade: E Total EAD 7225.00 Facility: OD1 Type Overdraft Guarantees ID PG1 Prepared: 09:12, 10/14/2005 Amounts Printed in: Thousands SYSTEMREPORTS (3.1.8.0) Aggregate LGD% 59.04 % EAD 1500.00 Total LGD 4265.83 Seniority Senior Aggregate EL% 2.52 % Guaranteed Yes Type Personal Eligible Amount 0.00 Type Receivables (Less Than 1 Year) - Not Affiliate Plant and Equipment (excl Leasehold Improvements) Inventory - Not Inspected LGD% 37.81 % PD 3.20 % Facility Grade C Total EL 181.74 EL% 1.61 % LGD% 0.00 % LGD Amount 0.00 Eligible Amount 657.29 LGD% 35.00 % LGD Amount 230.05 842.71 40.00 % 337.08 0.00 40.00 % 0.00 Collateral ID Rec1 PE1 Inv1 Facility: RLC 1 Type Revolving Line of Credit Facility: TL1 Type Term Loan Guarantees ID PG1 EAD 4125.00 Seniority Subordinated Guaranteed No LGD% 75.00 % Facility Grade F EL% 3.20 % EAD 1600.00 Seniority Senior Guaranteed Yes LGD% 37.81 % Facility Grade C EL% 1.61 % Type Personal Eligible Amount 0.00 Type Receivables (Less Than 1 Year) - Not Affiliate Plant and Equipment (excl Leasehold Improvements) Inventory - Not Inspected PD 3.20 % LGD% 0.00 % LGD Amount 0.00 Eligible Amount 701.11 LGD% 35.00 % LGD Amount 245.39 898.89 40.00 % 359.56 0.00 40.00 % 0.00 Collateral ID Rec1 PE1 Inv1 Moody’s KMV Sample Reports Page 108 Scorecard Detail (Explanation) Durawear Limited, Inc. (2005) (DWLMMAS) Scorecard Detail (Explanation) Industry Classification: NAICS Code: 315228 Scorecard Name: Scorecard Description: Source Currency: Target Currency: User Name: Prepared: 09:26, 10/14/2005 Amounts Printed in: Thousands SYSTEMREPORTS (3.1.8.0) Middle Market MMAS Middle Market Internal Rating model USD United States Dollars USD United States Dollars John Baer Section Name: Historical Ratio Assessments Factor Operations Net Profit before Tax / TA Net Profit before Tax / Sales Net profit before Tax / TNW Net Sales Growth Gross Margin Operating Profit Margin Breakeven Sales Realization Debt Service Earnings Coverage Cash Flow Coverage Liquidity Accounts Payable Days Accounts Receivable Days Quick Inventory Days Capital Structure Debt / Tangible Net Worth Borrowed Funds / EBITDA Borrowed Funds / Effective TNW Section Total Value Raw Score 14 9 12 87 41 19 37 14 9 12 87 41 19 37 10 40 10 40 50 98 30 63 50 98 30 63 64 4 60 64 4 60 Range ~ 0.00 ~ 100.00 0.00 ~ 100.00 0.00 ~ 100.00 0.00 ~ 100.00 0.00 ~ 100.00 0.00 ~ 100.00 0.00 ~ 100.00 ~ 0.00 ~ 100.00 0.00 ~ 100.00 ~ 0.00 ~ 100.00 0.00 ~ 100.00 0.00 ~ 100.00 0.00 ~ 100.00 ~ 0.00 ~ 100.00 0.00 ~ 100.00 0.00 ~ 100.00 Weight Weighted Score 0.04 0.04 0.04 0.05 0.03 0.04 0.06 0.56 0.36 0.48 4.35 1.23 0.76 2.22 0.13 0.12 1.3 4.8 0.06 0.03 0.06 0.06 3 2.94 1.8 3.78 0.08 0.08 0.08 5.12 0.32 4.8 Weight 0.15 Weighted Score 8.25 0.4 4 0.07 0.08 7 6.8 0.15 0.1 3.75 0 0.05 2.25 Section Name: Balance Sheet Factors Factor Audit Method Operations Growth Funding Liquidity Inventory Valuation Debtor Risk Capital Structure Debt Repayment Owner Support (% of Existing Facilities) Intrinsic Full Value of Intangibles Section Total Value Raw Score Tight Spread < 10% 25 0 Range -15.00 ~ 55.00 ~ 0.00 ~ 115.00 ~ 0.00 ~ 100.00 0.00 ~ 87.50 ~ 0.00 ~ 110.00 0.00 ~ 100.00 Negligible 45 45.00 ~ 105.00 Unqualified 55 Poor 10 Auditor Present Average Spread / Good Quality 100 85 Section Name: Industry / Market Factor Industry Industry Type Market Market Conditions Customer Power Diversification of Products Competitive Positioning Section Total Moody’s KMV Sample Reports Value Raw Score Manufacturing - Miscellaneous Industries 46.07 Neutral Some Many Products, Narrow Market Neutral 25 50 75 25 Range ~ 6.21 ~ 76.68 ~ -7.50 ~ 128.00 0.00 ~ 100.00 0.00 ~ 100.00 0.00 ~ 100.00 Weight Weighted Score 0.3 13.821 0.25 0.25 0.12 0.08 6.25 12.5 9 2 Page 109 Section Name: Company Factor Years in Relationship Business Stage Quality Management Supplier Power Credit History Conduct of Account Section Total Value > 2 Years Stable - Mature Exceeds Industry Standards Some Clear Good Raw Score 66.7 75 115 50 110 110 Range 0.00 ~ 66.70 0.00 ~ 80.00 0.00 ~ 115.00 0.00 ~ 100.00 0.00 ~ 110.00 0.00 ~ 110.00 Weight Value > 20 years Appropriate Planning and Reporting Pro-active Meets Expectations Balanced Adequate Raw Score Range 0.00 ~ 100.00 0.00 ~ 85.00 Weight 100 75 100 50 100 50 0.00 ~ 100.00 0.00 ~ 100.00 0.00 ~ 100.00 0.00 ~ 115.00 0.1 0.14 0.1 0.2 0.23 0.23 Weighted Score 6.67 10.5 11.5 10 25.3 25.3 Section Name: Management Factor Experience in Industry Financial Reporting and Formal Planning Risk Management Openness Risk Appetite Management Style and Structure Section Total Weighted Score 0.1 0.2 10 15 0.2 0.2 0.1 0.2 20 10 10 10 Scorecard Summary Section Historical Ratio Assessments Weight Weighted Score 0.4 Balance Sheet Factors 0.15 Industry / Market 0.1 Company 0.2 Management 0.15 Total Grade Equivalent PD 1 Yr EDF Moody’s KMV Sample Reports 5 2.06 % 4.26 Page 110 Facility Explanation Report – Committed MMAS Sample Customer (MMASSample) Facility Explanation Report - Committed Industry Classification: NAICS Code: 315228 Source Currency: USD United States Dollars Target Currency: USD United States Dollars Prepared: 18:10, 9/22/2005 Amounts Printed in: Thousands SYSTEMREPORTS (3.1.8.0) Facilities Facility ID OD1 Facility Type Overdraft Seniority Senior Facility Grade C TL1 Term Loan Senior C Facility Expected Loss Expected Loss is often defined as the product of the PD, the EAD and the LGD%. However, it should be noted that for portions of facilities that are guaranteed, the guarantor's PD is used in place of the Borrower's. Therefore RiskAnalyst actually calculates the facility expected loss as the sum of the expected losses for each portion of the exposure. RiskAnalyst calculates the EAD for the facility and then divides this into three main portions: a collateralized portion, a guaranteed portion and an unsecured portion. The collateralized and guaranteed portions are in turn further subdivided into portions attributed to each piece of collateral and guarantee. The Borrower’s PD is 2.06 % and this is used in the EL calculations for the collateralized and unsecured portions. For the guaranteed portion, the PD of each guarantor will be used for the portion covered by that guarantee. Therefore, one must calculate ELs for each guarantee separately and then sum them up. In order to work out the sizes of the guaranteed and collateralized portions, RiskAnalyst determines eligible amounts for each guarantee and collateral item allocated to the facility. This is done by first applying the relevant haircut, any prior liens and limitation, and allocation percentage. Applying the result to the amount required for this facility gives the eligible amount. The process used for eligible collateral is very similar. The following sections take each proposed and committed facility in turn and describe how it is broken into portions and the allocation of each guarantee and collateral item. Facility ID: OD1 Guaranteed Portion Collateralized Portion Unsecured Portion Facility Type: Overdraft Exposure Portion (Eligible Amount) 0.00 1500.00 0.00 Loss Given Default 0.00 567.14 0.00 Expected Loss 0.00 24.16 0.00 Guaranteed Portion of: OD1 Guarantee ID:PG1 Guarantor Haircut Allocation Using EAD Weighting Allocation Used Eligible LGD% used Owner Type Valuation Value after haircut 0.00 % 0.00 % 0.00 % Net Allocation No - Personal Guarantees not eligible Amount Used (Eligible Amount) Unused surplus 45.00 % Loss Given Default Personal 3100.00 3100.00 0.00 0.00 0.00 0.00 Collateralized Portion of: OD1 Collateral ID: Rec1 Type Haircut Prior Liens Limitation Allocation Using EAD Weighting Allocation Used Eligible LGD% for Collateral Type LGD% used Moody’s KMV Sample Reports Receivables (Less Than 1 Year) - Not Valuation Affiliate 20.00 % Value after haircut 0.00 Expected Realization 48.39 % 48.39 % Net Allocation Yes Amount Used (Eligible Amount) Unused surplus 35.00 % 35.00 % Loss Given Default Expected Loss 1698.00 1358.40 1358.40 657.29 657.29 0.00 230.05 9.80 Page 111 Collateral ID: PE1 Type Haircut Prior Liens Limitation Allocation Using EAD Weighting Allocation Used Eligible LGD% for Collateral Type LGD% used Collateral ID: Inv1 Type Haircut Prior Liens Limitation Allocation Using EAD Weighting Allocation Used Eligible LGD% for Collateral Type LGD% used Plant and Equipment (excl Leasehold Valuation Improvements) 28.57 % Value after haircut 0.00 Expected Realization 48.39 % 48.39 % Net Allocation Yes Amount Used (Eligible Amount) Unused surplus 40.00 % 40.00 % Loss Given Default Expected Loss Inventory - Not Inspected 28.57 % 0.00 0.00 % 0.00 % No - Collateral type not eligible 40.00 % 40.00 % Facility ID: TL1 Guaranteed Portion Collateralized Portion Unsecured Portion 3525.00 2517.86 2517.86 1218.32 842.71 375.61 337.08 14.36 Valuation Value after haircut 3056.00 2182.86 Expected Realization 2182.86 Net Allocation Amount Used (Eligible Amount) Unused surplus 0.00 0.00 0.00 Loss Given Default Expected Loss 0.00 0.00 Facility Type: Term Loan Exposure Portion (Eligible Amount) 0.00 1600.00 0.00 Loss Given Default 0.00 604.94 0.00 Expected Loss 0.00 25.77 0.00 Guaranteed Portion of: TL1 Guarantee ID:PG1 Guarantor Haircut Allocation Using EAD Weighting Allocation Used Eligible LGD% used Owner Type Valuation Value after haircut 0.00 % 0.00 % 0.00 % Net Allocation No - Personal Guarantees not eligible Amount Used (Eligible Amount) Unused surplus 45.00 % Loss Given Default Personal 3100.00 3100.00 0.00 0.00 0.00 0.00 Collateralized Portion of: TL1 Collateral ID: Rec1 Type Haircut Prior Liens Limitation Allocation Using EAD Weighting Allocation Used Eligible LGD% for Collateral Type LGD% used Moody’s KMV Sample Reports Receivables (Less Than 1 Year) - Not Valuation Affiliate 20.00 % Value after haircut 0.00 Expected Realization 51.61 % 51.61 % Net Allocation Yes Amount Used (Eligible Amount) Unused surplus 35.00 % 35.00 % Loss Given Default Expected Loss 1698.00 1358.40 1358.40 701.11 701.11 0.00 245.39 10.45 Page 112 Collateral ID: PE1 Type Haircut Prior Liens Limitation Allocation Using EAD Weighting Allocation Used Eligible LGD% for Collateral Type LGD% used Collateral ID: Inv1 Type Haircut Prior Liens Limitation Allocation Using EAD Weighting Allocation Used Eligible LGD% for Collateral Type LGD% used Moody’s KMV Sample Reports Plant and Equipment (excl Leasehold Valuation Improvements) 28.57 % Value after haircut 0.00 Expected Realization 51.61 % 51.61 % Net Allocation Yes Amount Used (Eligible Amount) Unused surplus 40.00 % 40.00 % Loss Given Default Expected Loss Inventory - Not Inspected 28.57 % 0.00 0.00 % 0.00 % No - Collateral type not eligible 40.00 % 40.00 % 3525.00 2517.86 2517.86 1299.54 898.89 400.65 359.56 15.32 Valuation Value after haircut 3056.00 2182.86 Expected Realization 2182.86 Net Allocation Amount Used (Eligible Amount) Unused surplus 0.00 0.00 0.00 Loss Given Default Expected Loss 0.00 0.00 Page 113 Facility Explanation Report – Proposed MMAS Sample Customer (MMASSample) Facility Explanation Report - Proposed Industry Classification: NAICS Code: 315228 Source Currency: USD United States Dollars Target Currency: USD United States Dollars Prepared: 18:10, 9/22/2005 Amounts Printed in: Thousands SYSTEMREPORTS (3.1.8.0) Facilities Facility ID OD1 Facility Type Overdraft Seniority Senior Facility Grade C TL1 Term Loan Senior C Facility Expected Loss Expected Loss is often defined as the product of the PD, the EAD and the LGD%. However, it should be noted that for portions of facilities that are guaranteed, the guarantor's PD is used in place of the Borrower's. Therefore RiskAnalyst actually calculates the facility expected loss as the sum of the expected losses for each portion of the exposure. RiskAnalyst calculates the EAD for the facility and then divides this into three main portions: a collateralized portion, a guaranteed portion and an unsecured portion. The collateralized and guaranteed portions are in turn further subdivided into portions attributed to each piece of collateral and guarantee. The Borrower’s PD is 2.06 % and this is used in the EL calculations for the collateralized and unsecured portions. For the guaranteed portion, the PD of each guarantor will be used for the portion covered by that guarantee. Therefore, one must calculate ELs for each guarantee separately and then sum them up. In order to work out the sizes of the guaranteed and collateralized portions, RiskAnalyst determines eligible amounts for each guarantee and collateral item allocated to the facility. This is done by first applying the relevant haircut, any prior liens and limitation, and allocation percentage. Applying the result to the amount required for this facility gives the eligible amount. The process used for eligible collateral is very similar. The following sections take each proposed and committed facility in turn and describe how it is broken into portions and the allocation of each guarantee and collateral item. Facility ID: OD1 Guaranteed Portion Collateralized Portion Unsecured Portion Facility Type: Overdraft Exposure Portion (Eligible Amount) 0.00 1500.00 0.00 Loss Given Default 0.00 567.14 0.00 Expected Loss 0.00 24.16 0.00 Guaranteed Portion of: OD1 Guarantee ID:PG1 Guarantor Haircut Allocation Using EAD Weighting Allocation Used Eligible LGD% used Owner Type Valuation Value after haircut 0.00 % 0.00 % 0.00 % Net Allocation No - Personal Guarantees not eligible Amount Used (Eligible Amount) Unused surplus 45.00 % Loss Given Default Personal 3100.00 3100.00 0.00 0.00 0.00 0.00 Collateralized Portion of: OD1 Collateral ID: Rec1 Type Haircut Prior Liens Limitation Allocation Using EAD Weighting Allocation Used Eligible LGD% for Collateral Type LGD% used Moody’s KMV Sample Reports Receivables (Less Than 1 Year) - Not Valuation Affiliate 20.00 % Value after haircut 0.00 Expected Realization 48.39 % 48.39 % Net Allocation Yes Amount Used (Eligible Amount) Unused surplus 35.00 % 35.00 % Loss Given Default Expected Loss 1698.00 1358.40 1358.40 657.29 657.29 0.00 230.05 9.80 Page 114 Collateral ID: PE1 Type Haircut Prior Liens Limitation Allocation Using EAD Weighting Allocation Used Eligible LGD% for Collateral Type LGD% used Collateral ID: Inv1 Type Haircut Prior Liens Limitation Allocation Using EAD Weighting Allocation Used Eligible LGD% for Collateral Type LGD% used Plant and Equipment (excl Leasehold Valuation Improvements) 28.57 % Value after haircut 0.00 Expected Realization 48.39 % 48.39 % Net Allocation Yes Amount Used (Eligible Amount) Unused surplus 40.00 % 40.00 % Loss Given Default Expected Loss Inventory - Not Inspected 28.57 % 0.00 0.00 % 0.00 % No - Collateral type not eligible 40.00 % 40.00 % Facility ID: RLC 1 Guaranteed Portion Collateralized Portion Unsecured Portion 2517.86 2517.86 1218.32 842.71 375.61 337.08 14.36 Valuation Value after haircut 3056.00 2182.86 Expected Realization 2182.86 Net Allocation Amount Used (Eligible Amount) Unused surplus 0.00 0.00 0.00 Loss Given Default Expected Loss 0.00 0.00 Facility Type: Revolving Line of Credit Exposure Portion (Eligible Amount) 0.00 0.00 4125.00 Facility ID: TL1 Guaranteed Portion Collateralized Portion Unsecured Portion 3525.00 Loss Given Default 0.00 0.00 3093.75 Expected Loss 0.00 0.00 131.81 Facility Type: Term Loan Exposure Portion (Eligible Amount) 0.00 1600.00 0.00 Loss Given Default 0.00 604.94 0.00 Expected Loss 0.00 25.77 0.00 Guaranteed Portion of: TL1 Guarantee ID:PG1 Guarantor Haircut Allocation Using EAD Weighting Allocation Used Eligible LGD% used Owner Type Valuation Value after haircut 0.00 % 0.00 % 0.00 % Net Allocation No - Personal Guarantees not eligible Amount Used (Eligible Amount) Unused surplus 45.00 % Loss Given Default Personal 3100.00 3100.00 0.00 0.00 0.00 0.00 Collateralized Portion of: TL1 Collateral ID: Rec1 Type Haircut Prior Liens Limitation Allocation Using EAD Weighting Allocation Used Eligible LGD% for Collateral Type LGD% used Moody’s KMV Sample Reports Receivables (Less Than 1 Year) - Not Valuation Affiliate 20.00 % Value after haircut 0.00 Expected Realization 51.61 % 51.61 % Net Allocation Yes Amount Used (Eligible Amount) Unused surplus 35.00 % 35.00 % Loss Given Default Expected Loss 1698.00 1358.40 1358.40 701.11 701.11 0.00 245.39 10.45 Page 115 Collateral ID: PE1 Type Haircut Prior Liens Limitation Allocation Using EAD Weighting Allocation Used Eligible LGD% for Collateral Type LGD% used Collateral ID: Inv1 Type Haircut Prior Liens Limitation Allocation Using EAD Weighting Allocation Used Eligible LGD% for Collateral Type LGD% used Moody’s KMV Sample Reports Plant and Equipment (excl Leasehold Valuation Improvements) 28.57 % Value after haircut 0.00 Expected Realization 51.61 % 51.61 % Net Allocation Yes Amount Used (Eligible Amount) Unused surplus 40.00 % 40.00 % Loss Given Default Expected Loss Inventory - Not Inspected 28.57 % 0.00 0.00 % 0.00 % No - Collateral type not eligible 40.00 % 40.00 % 3525.00 2517.86 2517.86 1299.54 898.89 400.65 359.56 15.32 Valuation Value after haircut 3056.00 2182.86 Expected Realization 2182.86 Net Allocation Amount Used (Eligible Amount) Unused surplus 0.00 0.00 0.00 Loss Given Default Expected Loss 0.00 0.00 Page 116 MOODY’S KMV SUPPORTLINE If you are still having problems after referring to the Online Help System, you can reach the Moody’s KMV SupportLine at: Phone: North American Callers: +1.866.995.9659 International Callers: Dial your AT&T Country Access Code followed by +1.866.995.9659 or +1.415.874.6568 To obtain your country’s AT&T Direct Access code, visit http://www.business.att.com/bt/access.jsp?c=a Email: mailto:techsupport@MKMV.com Web Site: https://support.moodyskmv.com/ Moody’s KMV Sample Reports Page 117