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Exhibit 1 Consolidated Income Statements, 1980 - 1984 ($ 000s)

Exhibit 1

Consolidated Income Statements, 1980 - 1984 ($ 000s)

Actual
1980

1981

1982

1983

1984

Net sales

9,740

10,044

11,948

13,970

15,260

Cost of sales

5,836

5,648

6,994

8,304

9,298

Gross profit on sales

3,904

4,396

4,954

5,666

5,962

Selling and admin. expenses

2,216

2,072

2,470

3,022

3,274

40

108

70

128

120

1,728

2,432

2,554

2,772

2,808

Federal income taxes

816

972

920

942

842

Net profit

912

1,460

1,634

1,830

1,966

Other income and (expense), net


Profit before income taxes

Exhibit 2

Consolidated Balance Sheet as of December 31, 1984

ASSETS

LIABILITIES & SHAREHOLDERS EQUITY

Current assets:

Current liabilities

Cash and marketable securities

5,762

Accounts payable

654

Accounts receivable

2,540

Accrued expenses

366

Accrued income taxes

246

Inventories at lower cost or market

588

Prepaid expenses

108

Total current assets


Property,plant, & equipment, net
Miscellaneous assets

Total current liabilities

1,266

8,998

Common stock ($1.00 par value)

2,110

Retained profits

9,716

Shareholders' equity

9,916

74

200

Total liability and


Total assets:

11,182

shareholders' equity

11,182

Exhibit 3 Ten-Year Summary of Operations, 1975 - 1984 ($ 000, except per share data)

1975

1976

1977

1978

1979

1980

1981

1982

1983

1984

Net sales

7,688

8,356

8,526

8,790

9,350

9,740 10,044

11,948

13,970

15,260

Net profit

638

668

742

748

758

912

1,460

1,634

1,830

1,966

Dividends

600

200

280

280

440

440

480

1,220

1,374

1,480

Earnings per share ($)

3.19

3.34

3.71

3.74

3.79

4.56

7.3

8.17

9.15

9.83

Net profit margin

Exhibit 4

8.30% 8.00% 8.70% 8.50% 8.10% 9.40% 14.50% 13.70% 13.10% 12.90%

Monthly Working Capital Balances, 1984 ($ 000s)

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Cash

5,536

5,714

5,396

4,784

4,328

4,098

2,354

Accounts Receivable

1,480

760

734

804

718

604

Inventories

1,124

1,666

2,210

2,752

3,294

Current Liabilities

1,186

1,220

1,242

1,146

Net Working Capital

6,954

6,920

7,098

7,194

Aug.

Sep.

Oct.

Nov.

Dec.

766

2,050

3,830

5,734

5,762

3,432

6,104

6,164

4,322

2,398

2,540

3,838

2,754

1,670

526

588

608

588

1,422

1,344

1,072

1,216

1,174

1,384

1,340

1,266

6,918

7,196

7,468

7,324

7,566

7,356

7,400

7,624

Exhibit 5

Comparative Data on Selected Companies in Related Lines of Business


Standard & Poor's Standard & Poor's
425 Industrial
Publishing
Stocks
Averages
DeLuther, Inc.*

Trading market
Current market price
Indicated dividend yield

Wakefield Co.**

John M. Case
Company

Officomp, Inc.***

OTC

OTC

OTC

---

$22.25

$14.75

$29.25

---

5.50%

8.70%

3.70%

---

Price-earning ratio
1984

9.9

14.6

8.7

7.2

10.5

---

1983

11.8

19.6

6.4

10.2

---

1982

10.4

14.4

10.8

11.9

13.8

---

1984

$24.625-16.25

$14.125-8.125

$33.125-26.5

1983

$18.5-12.125

Price range

Earnings per share (E)($) and Index(I)

$11.5-5.125

$19.75-12.875

(E)

(I)

(E)

(I)

(E)

(I)

(E)

(I)

1984

$2.48

110

$1.62

82

$2.98

177

$9.83

216

1980

$2.26

100

$1.97

100

$1.68

100

$4.56

100

(S)

(I)

(S)

(I)

(S)

(I)

(S)

(I)

1984

$16,427

142

$12,223

108

$18,608

160

$15,260

157

Sales (S)($000s) and Index (I)

1980

$11,568

100

$11,317

100

$11,630

100

$9,740

100

Net earnings (N)($000s) and Index (I)

(N)

(I)

(N)

(I)

(N)

(I)

(N)

(I)

1984

$1,051

117

$501

84

$1,656

178

$1,966

216

1980

$902

100

$600

100

$930

100

$912

100

1984

6.40%

4.10%

8.90%

12.90%

1980

7.80%

5.30%

8.00%

9.40%

1984

16.60%

6.00%

16.90%

19.80%

1983

14.20%

5.70%

15.00%

19.00%

1982

15.40%

8.80%

14.70%

19.20%

Net profit margins

Profit/Net worth

Book capitalization ($000s)****


Long-term debt

$3,995

39%

$1,882

18%

$4,173

29.90%

---

---

Common stock and surplus

$6,318

61%

$8,298

82%

$9,783

70.10%

$9,916

100%

$10,313

100%

$10,180

100%

$13,956

100.00%

$9,916

100%

Total

Total market value


Shares outstanding

* Producer of desk-top accessories, advertising specialty calendars, office stationery.


** Producer of advertising specialty calendars

$9,456

$4,573

$16,234

---

425

310

555

200

*** Producer of broad line of office paper products and desk accessories
**** All companies, December 31, 1984

exhibit 7

Exhibit 7 Cash Flow Forecasts 1985-1990 ($000s)

Net sales
Earnings before interest and taxes*
Interest expense**
Profit before tax
Taxes
Profit after tax
Add back: noncash charges
Cash flow from operations
Less: increase in working capital
Less: capital expenditures
Available for debt retirement

1985

1986

1987

1988

1989

1990

16,024
3,433
1,675
1,758
274
1,484
240
1,724
156
120
1,448

$16,844
3,640
1,538
2,102
364
1,738
260
1,998
162
134
1,702

$17,686
3,757
1,369
2,388
440
1,948
284
2,232
170
142
1,920

$18,570
3,608
908
2,700
556
2,144
300
2,444
180
150
2,114

$19,498
3,788
800
2,988
660
2,328
310
2,638
190
466
1,982

$20,472
3,976
800
3,176
714
2,462
340
2,802
200
600
2,002

1,448
0
0
89%

1,702
0
0
80%

1,920
0
0
70%

930
1,184
0
58%

0
4766***
0
47%

2,002
0
0
35%

Planned debt retirement:


Bank loan
Mr. Case's loan
Subordinated loan
Debt as % of total capital

* Reflects elimination of Mr. Case's salary.


** 9% coupon on subordinated loan of $6 million; 4% coupon on sellers note of $6 million; 12%
rate on bank term loan; 10% rate on seasonal loan.
*** Mr. Case's note is retired from cash flow and a $2.8 million new bank term loan in 1989.

Page 6

exhibit 7

1985

1986

1987

1988

1989

1990

17%

18%

21%

22%

22%

Kd
1.156768
0.214241
0.785759
16%

Page 7

Capital Structure for John M. Case after Acquisition


Particular
Amount
Rate
Term
Bank Loan
6000
12% 6 year
Seller Note
4000
4% 5 year
Venture Capitalist
9,500
9% 9% Coupon Convertible
Equity
500
Total Capital
20000

Cost of Debt
Debt
Bank Loan
Seller Note
Venture Capitalist
Total Debt

Weight
6000
4000
9,500
19500

Rate
31%
21%
49%

12%
4%
9%

Weight
30.0%
20.0%
47.5%
2.5%

Wght Avg
4%
1%
4%
9%

Free Cashflow to the Firm (John M. Case Company)


Year
Revenue
EBIT
Tax Rate
EBIT (1-T)
Depreciation
Capital Expenditure
Change in Working Capital
Free Cash Flow of the Firm
PV

1985
16,024
3,433
16%
2898
240
120
156
2862

1986
16,844
3,640
17%
3010
260
134
162
2974

1987
17,686
3,757
18%
3065
284
142
170
3037

1988
18,570
3,608
21%
2865
300
150
180
2835

1989
19,498
3,788
22%
2951
310
466
190
2605

Debt Retirement Obligation


Bank Loan
Seller note
Subordinated Loan

1985

1986

1987

1988

1989

1985
9.00%
1.1
6.00%
15.60%

1986
9.00%
1.1
6.00%
15.60%

1987
9.00%
1.1
6.00%
15.60%

1988
9.00%
1.1
6.00%
15.60%

1989
9.00%
1.1
6.00%
15.60%

Free Cashflow to the Expansion Plan


Particulars
1985
Expansion Rev
1000
Net Income
60
Depreciation
40
Initial Inv
200
Merchandising
450
FCF
-550

1986
1400
84
40
0
450
-326

1987
1960
118
40
0
0
158

1988
2744
165
40
0
0
205

1989
3114
187
40
0
0
227

Discount Factor
Risk Free
Beta
Risk Premium
Cost of Equity (CAPM)
Cost of Debt
Weight of Debt
Weight of Equity
WACC
Discount Denominator
Discount Factor

1990
20,472
3,976
22%
3082
340 *Non Cash charges are d
600
200
2622

1990

1990
9.00% Assumption: Risk free ra
1.1
6.00%
15.60%

1990
3535
212
0
0
0
212

*Non Cash charges are depreciation expenses

Assumption: Risk free rate = 9% based on US data