Sie sind auf Seite 1von 48

These spreadsheet exhibits relate to the case Teuer Furniture (B): Multiples Valuation, Case #KEL790.

2014 by the Kellogg School of Management at Northwestern University. This case was prepared by Professor
Mitchell A. Petersen. Teuer Furniture is a fictional company whose profile was created based on data from real
industry leaders. Cases are developed solely as the basis for class discussion. Cases are not intended to serve
as endorsements, sources of primary data, or illustrations of effective or ineffective management. To order
copies or request permission to reproduce materials, call 800-545-7685 (or 617-783-7600 outside the United
States or Canada) or e-mail custserv@hbsp.harvard.edu. No part of this publication may be reproduced, stored
in a retrieval system, used in a spreadsheet, or transmitted in any form or by any meanselectronic,
mechanical, photocopying, recording, or otherwisewithout the permission of Kellogg Case Publishing.

Case #KEL790.

as prepared by Professor
based on data from real
are not intended to serve
nagement. To order
600 outside the United
ay be reproduced, stored
nselectronic,
Case Publishing.

Exhibit 1-A: Bassett Furniture Industries Inc (BSET)


Income Statement

12/31/2012

12/31/2011

269.7

253.2

Cost of goods sold

128.4

125.6

Selling, general, and administrative

134.8

122.0

0.0

0.0

Revenue

Depreciation
R&D
Other expenses (income)
Interest expenses (net)

0.0

0.0

-5.2

-54.8

-0.2

0.6

12.0

59.7

-14.7

4.4

26.7

55.3

Earnings before interest and taxes

11.7

60.3

Adjusted taxes (all equity firm)

-14.4

4.4

26.1

55.9

12/31/2012

12/31/2011

Cash and equivalents

45.6

69.6

Accounts receivable

15.8

14.8

Inventory

57.9

45.1

Other current assets

13.3

10.7

Income before taxes


Taxes
Net Income
Adjusted income (all equity firm)

Net income (all equity firm)


Balance Sheet
Assets

Total current assets

132.5

140.2

Property, plant, and equipment

56.6

49.9

Goodwill and other intangibles

0.0

0.0

38.0

33.0

94.7

83.0

227.2

223.2

Accounts payable

22.4

18.8

Accrued expenses

17.4

17.7

0.0

0.0

Other long-term assets


Total long-term assets
Total assets
Liabilities

Notes payable
Current maturities of long-term debt
Other current liabilities
Total current liabilities
Long-term debt and capital leases

0.0

0.0

12.8

15.3

52.6

51.8

3.1

3.7

Other liabilities

14.3

15.3

Common equity

157.3

152.4

227.2

223.2

Total liabilities and shareholder's equity


Financial Data
Cash flow to assets

-2.2

Stock price
Common shares outstanding

14.2
10.9

Market value of equity

154.7

Enterprise value

112.2

Ratios and Summary Data


Sales growth
Gross profit margin
Net profit margin
AR/sales

6.5%

7.6%

52.4%

50.4%

9.9%

21.9%

5.8%

5.8%

Inventory/CGS

45.1%

35.9%

AP/CGS

17.5%

15.0%

Net investment

28.3

Multiples
Asset price/Cash flow assets

NMF

Asset price/Adjusted net income

4.3x

Asset price/Sales

0.4x

Equity price/Net income

5.8x

g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
Debt to Equity Ratio

0.1416327569

9.9%
-12.3928955223
0.6611436065
0.0194112411

2%

12/31/2010

12/31/2009

12/31/2008

235.3

232.7

288.3

122.6

129.9

110.8

103.8

0.0

0.0

0.0

0.0

4.9

21.6

-0.8

2.0

-2.2

-24.5

-0.2

-1.8

-2.0

-22.7

-3.0

-22.5

-0.3

-1.7

-2.7

-20.9

12/31/2010

12/31/2009

11.1

23.2

31.6

34.6

41.8

33.4

7.0

13.3

91.5

104.5

46.3

50.6

15.1

14.9

44.5

46.1

105.8

111.7

197.3

216.2

24.9

14.7

17.4

17.2

0.0

0.0

9.5

4.4

10.1

7.0

61.8

43.3

4.3

32.0

24.9

30.7

106.3

110.3

197.3

216.2

6.8

4.9
5.6689134658

1.1%

-19.3%

47.9%

44.2%

-0.8%

-9.8%

13.4%

14.9%

34.1%

25.7%

20.3%

11.3%

Exhibit 1-B: Ethan Allen Interiors Inc (ETH)


Income Statement

6/30/2012

6/30/2011

6/30/2010

6/30/2009

6/30/2008

729.4

679.0

590.1

674.3

980.0

Cost of goods sold

339.1

329.5

309.8

326.9

Selling, general, and administrative

322.0

296.7

262.6

394.5

18.6

20.8

29.4

25.6

R&D

0.0

0.0

0.0

0.0

Other expenses (income)

0.0

0.0

0.0

0.0

Interest expenses (net)

8.5

5.6

7.1

8.4

41.2

26.4

-18.8

-81.2

Revenue

Depreciation

Income before taxes


Taxes

-8.5

-2.9

25.5

-28.5

49.7

29.3

-44.3

-52.7

Earnings before interest and taxes

49.7

31.9

-11.7

-72.8

Adjusted taxes (all equity firm)

-10.2

-3.5

15.9

-25.5

59.9

35.4

-27.7

-47.2

6/30/2012

6/30/2011

6/30/2010

6/30/2009

Cash and equivalents

88.7

91.4

84.9

53.0

Accounts receivable

14.9

15.0

17.1

13.1

155.7

141.7

134.0

156.5

Net Income
Adjusted income (all equity firm)

Net income (all equity firm)

Balance Sheet
Assets

Inventory
Other current assets

23.4

20.4

23.6

29.2

282.8

268.5

259.7

251.7

Property, plant, and equipment

295.7

294.9

305.7

333.6

Goodwill and other intangibles

45.1

45.1

45.1

45.1

Other long-term assets

21.2

19.8

21.2

16.1

Total long-term assets

362.0

359.8

372.1

394.8

Total assets

644.8

628.3

631.8

646.5

Accounts payable

27.3

27.0

24.0

22.2

Accrued expenses

58.0

65.0

65.3

58.5

Notes payable

0.0

0.0

0.0

0.0

Current maturities of long-term debt

0.3

0.0

3.9

0.0

65.5

62.6

52.6

31.7

151.1

154.6

145.7

112.5

154.3

165.0

199.4

203.1

Total current assets

Liabilities

Other current liabilities


Total current liabilities
Long-term debt and capital leases
Other liabilities

17.8

27.0

28.2

25.0

Common equity

321.7

281.7

258.5

305.9

644.8

628.3

631.7

646.5

Total liabilities and shareholder's equity

Financial Data
Cash flow to assets

27.7

Stock price

19.9

Common shares outstanding

28.8

Market value of equity

573.1

Enterprise value

638.9

Ratios and Summary Data


Sales growth

7.4%

15.1%

-12.5%

-31.2%

53.5%

51.5%

47.5%

51.5%

Net profit margin

6.8%

4.3%

-7.5%

-7.8%

AR/sales

2.0%

2.2%

2.9%

1.9%

45.9%

43.0%

43.3%

47.9%

AP/CGS

8.1%

8.2%

7.7%

6.8%

Net investment

32.1

Gross profit margin

Inventory/CGS

Multiples
Asset price/Cash flow assets

23.0x

Asset price/Adjusted net income

10.7x

Asset price/Sales
Equity price/Net income

g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
Debt to Equity Ratio

0.9x
11.5x

0.0662791059
6.8%
7.4885002291
1.2419576799
0.4803059036

32%

Exhibit 1-C: Furniture Brands International Inc (FBN)


Income Statement

12/29/2012

12/31/2011

1072.3

1107.7

Cost of goods sold

827.3

837.1

Selling, general, and administrative

252.8

270.9

18.9

21.9

0.0

0.0

16.6

20.8

Revenue

Depreciation
R&D
Other expenses (income)
Interest expenses (net)

5.7

3.6

-49.0

-46.6

-1.8

-2.8

-47.3

-43.8

Earnings before interest and taxes

-43.4

-43.0

Adjusted taxes (all equity firm)

-1.6

-2.6

-41.8

-40.4

12/29/2012

12/31/2011

11.9

25.4

Accounts receivable

125.7

108.0

Inventory

244.3

228.2

11.3

9.5

393.2

371.0

Property, plant, and equipment

103.4

115.8

Goodwill and other intangibles

76.1

77.5

Other long-term assets

45.7

50.2

Total long-term assets

225.2

243.5

Total assets

618.4

614.5

Accounts payable

113.6

85.6

Accrued expenses

58.7

53.6

Notes payable

0.0

0.0

Current maturities of long-term debt

0.0

0.0

Other current liabilities

0.0

0.0

172.3

139.2

Income before taxes


Taxes
Net Income
Adjusted income (all equity firm)

Net income (all equity firm)

Balance Sheet
Assets
Cash and equivalents

Other current assets


Total current assets

Liabilities

Total current liabilities


Long-term debt and capital leases

105.0

77.0

Other liabilities

286.3

266.1

Common equity

54.8

132.3

618.4

614.5

Total liabilities and shareholder's equity

Financial Data
Cash flow to assets
Stock price

-5.8
7.4

Common shares outstanding


Market value of equity
Enterprise value

8.0
59.7
152.8

93.1

Ratios and Summary Data


Sales growth

-3.2%

-4.5%

Gross profit margin

22.8%

24.4%

Net profit margin

-4.4%

-3.9%

AR/sales

11.7%

9.7%

Inventory/CGS

29.5%

27.3%

AP/CGS

13.7%

10.2%

Net investment

(36.0)

Multiples
Asset Price/Cash flow assets

NMF

Asset price/Adjusted net income

NMF

Asset Price/Sales

0.1x

Equity Price/Net income

NMF

g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
Debt to Equity Ratio

-0.1795620438
-4.4%
-0.2771131359
3.9207596806
1.9160583942

12/31/2010

12/31/2009

12/31/2008

1159.9

1224.4

1744.5

879.2

986.2

285.2

322.8

23.9

20.7

0.0

0.0

16.5

65.8

3.2

5.3

-47.9

-176.5

-8.9

-67.8

-39.0

-108.7

-44.8

-171.1

-8.3

-65.7

-36.4

-105.4

12/31/2010

12/31/2009

52.0

83.9

114.5

184.5

249.7

226.1

11.2

9.3

427.4

503.7

124.9

134.4

86.5

87.6

37.6

32.4

249.0

254.4

676.4

758.1

79.9

83.8

61.2

75.9

0.0

0.0

0.0

17.0

0.0

0.0

141.1

176.8

77.0

78.0

198.8

240.6

259.6

262.8

676.4

758.1

-5.3%

-29.8%

24.2%

19.5%

-3.4%

-8.9%

9.9%

15.1%

28.4%

22.9%

9.1%

8.5%

-0.14974606

Exhibit 1-D: Haverty Furniture Companies Inc (HVT)


Income Statement

12/31/2012

12/31/2011

670.4

621.4

Cost of goods sold

318.0

300.2

Selling, general, and administrative

309.6

297.8

19.4

18.2

0.0

0.0

-0.8

-0.2

Revenue

Depreciation
R&D
Other expenses (income)
Interest expenses (net)

0.6

0.7

23.5

4.6

8.6

-10.9

14.9

15.5

Earnings before interest and taxes

24.1

5.3

Adjusted taxes (all equity firm)

8.8

-12.6

15.3

17.9

12/31/2012

12/31/2011

53.6

49.6

Income before taxes


Taxes
Net Income
Adjusted income (all equity firm)

Net income (all equity firm)

Balance Sheet
Assets
Cash and equivalents
Accounts receivable

9.7

11.5

Inventory

96.9

93.7

Other current assets

19.7

22.9

179.9

177.7

Property, plant, and equipment

193.1

179.3

Goodwill and other intangibles

0.0

0.0

29.1

28.1

Total long-term assets

222.2

207.4

Total assets

402.1

385.1

Accounts payable

28.2

21.2

Accrued expenses

11.8

11.0

Notes payable

0.0

0.0

Current maturities of long-term debt

0.9

0.8

49.0

39.4

89.9

72.4

Long-term debt and capital leases

18.5

12.3

Other liabilities

34.3

37.8

Common equity

259.4

262.7

402.1

385.1

Total current assets

Other long-term assets

Liabilities

Other current liabilities


Total current liabilities

Total liabilities and shareholder's equity

Financial Data
Cash flow to assets

16.2

Stock price

16.3

Common shares outstanding

22.3

Market value of equity

362.9

Enterprise value

328.7

Ratios and Summary Data


Sales growth

7.9%

0.2%

52.6%

51.7%

Net profit margin

2.2%

2.5%

AR/sales

1.4%

1.8%

Gross profit margin

Inventory/CGS

30.5%

31.2%

AP/CGS

8.9%

7.1%

Net investment

(0.9)

Multiples
Asset Price/Cash flow assets

20.3x

Asset price/Adjusted net income

21.5x

Asset Price/Sales
Equity Price/Net income

g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
Debt to Equity Ratio

0.5x
24.3x

-0.0212003238
2.2%
44.6415548509
-0.0416775249
0.0745865937

12/31/2010

12/31/2009

12/31/2008

620.3

588.3

691.1

301.6

282.8

295.4

292.2

16.9

19.3

0.0

0.0

-3.0

-1.4

0.8

0.8

8.7

-5.4

0.2

-1.2

8.4

-4.2

9.5

-4.6

0.3

-1.0

9.2

-3.6

12/31/2010

12/31/2009

58.1

44.5

13.8

15.3

91.9

93.3

13.2

15.2

176.9

168.3

175.5

176.4

0.0

0.0

17.7

16.2

193.2

192.6

370.2

360.9

18.1

19.1

31.4

30.2

0.0

0.0

0.5

0.4

20.6

21.8

70.6

71.4

8.6

6.8

37.9

38.1

253.2

244.6

370.2

360.9

5.5%

-14.9%

51.4%

51.9%

1.4%

-0.7%

2.2%

2.6%

30.5%

33.0%

6.0%

6.8%

Exhibit 1-E: La-Z-Boy Incorporated (LZB)


Income Statement

4/28/2012

4/30/2011

1231.7

1187.1

Cost of goods sold

851.8

832.8

Selling, general, and administrative

306.7

299.7

23.5

24.3

0.0

0.0

-18.6

2.1

Revenue

Depreciation
R&D
Other expenses (income)
Interest expenses (net)

1.4

2.3

66.9

26.0

-22.0

8.6

88.9

17.4

Earnings before interest and taxes

68.2

28.3

Adjusted taxes (all equity firm)

-22.5

9.4

90.7

18.9

4/28/2012

4/30/2011

Cash and equivalents

152.4

115.3

Accounts receivable

167.2

161.3

Inventory

143.8

138.4

36.6

17.2

500.0

432.2

Property, plant, and equipment

114.4

120.6

Goodwill and other intangibles

3.0

3.1

68.3

37.5

Total long-term assets

185.7

161.2

Total assets

685.7

593.5

Accounts payable

56.6

49.5

Accrued expenses

44.9

37.4

Notes payable

0.0

0.0

Current maturities of long-term debt

1.8

5.1

46.4

40.0

149.8

132.1

Income before taxes


Taxes
Net Income
Adjusted income (all equity firm)

Net income (all equity firm)

Balance Sheet
Assets

Other current assets


Total current assets

Other long-term assets

Liabilities

Other current liabilities


Total current liabilities
Long-term debt and capital leases

7.9

29.9

Other liabilities

86.1

70.1

Common equity

441.9

361.3

685.7

593.4

Total liabilities and shareholder's equity

Financial Data
Cash flow to assets

72.5

Stock price

15.3

Common shares outstanding

52.2

Market value of equity

801.4

Enterprise value

658.8

Ratios and Summary Data


Sales growth

3.8%

0.7%

30.8%

29.8%

7.2%

1.5%

AR/sales

13.6%

13.6%

Inventory/CGS

Gross profit margin


Net profit margin

16.9%

16.6%

AP/CGS

6.6%

5.9%

Net investment

18.2

Multiples
Asset price/Cash flow assets

9.1x

Asset price/Adjusted net income

7.3x

Asset price/Sales

0.5x

Equity price/Net income

9.0x

g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
Debt to Equity Ratio

0.0153428377
7.2%
37.5936681811
2.6874127404
0.0220864449

4/24/2010

4/25/2009

4/25/2008

1179.2

1226.7

1450.9

804.5

887.9

307.5

408.7

25.2

24.1

0.0

0.0

-5.8

-2.6

3.0

5.6

44.7

-97.0

12.7

24.3

32.1

-121.3

47.7

-91.4

13.5

22.9

34.2

-114.4

4/24/2010

4/25/2009

108.4

36.1

165.0

147.9

132.5

140.2

21.2

23.7

427.1

347.8

138.9

150.2

3.1

3.1

38.8

51.4

180.7

204.8

607.8

552.5

54.7

41.6

51.7

75.7

0.0

0.0

1.1

8.7

39.8

0.0

147.3

126.0

46.9

52.1

73.7

68.6

339.8

305.7

607.8

552.5

-3.9%

-15.5%

31.8%

27.6%

2.7%

-9.9%

14.0%

12.1%

16.5%

15.8%

6.8%

4.7%

Exhibit 1-F: Restoration Hardware Holdings Inc (RN)


Income Statement
Revenue

2/2/2013

1/28/2012

1193.0

958.1

Cost of goods sold

756.6

601.7

Selling, general, and administrative

390.4

327.9

0.0

0.0

Depreciation
R&D
Other expenses (income)
Interest expenses (net)
Income before taxes
Taxes

0.0

0.0

115.1

1.6

5.8

5.1

-74.8

21.7

-62.0

1.1

-12.8

20.6

Earnings before interest and taxes

-69.0

26.8

Adjusted taxes (all equity firm)

-57.2

1.4

-11.8

25.5

2/2/2013

1/28/2012

8.4

8.5

17.0

11.8

353.3

245.9

Net Income
Adjusted income (all equity firm)

Net income (all equity firm)

Balance Sheet
Assets
Cash and equivalents
Accounts receivable
Inventory
Other current assets

114.0

56.7

492.8

322.9

Property, plant, and equipment

111.4

83.6

Goodwill and other intangibles

172.7

175.1

Total current assets

12.7

5.3

Total long-term assets

Other long-term assets

296.9

263.9

Total assets

789.6

586.8

Accounts payable

81.6

47.4

Accrued expenses

63.7

58.3

Notes payable

0.0

0.0

Current maturities of long-term debt

2.9

4.1

Liabilities

Other current liabilities

71.1

52.2

219.4

162.0

Long-term debt and capital leases

84.1

122.3

Other liabilities

34.5

52.1

Common equity

451.6

250.5

789.6

586.8

Total current liabilities

Total liabilities and shareholder's equity

Financial Data

Cash flow to assets

-173.8

Stock price

70.3

Common shares outstanding

38.9

Market value of equity

2735.5

Enterprise value

2814.2

Ratios and Summary Data


Sales growth

24.5%

24.0%

Gross profit margin (revenue-CGS)/Revenue

36.6%

37.2%

net profit margin (net profit/revenue)

-1.1%

2.2%

1.4%

1.2%

AR/sales
Inventory/CGS

46.7%

40.9%

AP/CGS

10.8%

7.9%

Net investment

161.9

Multiples
Asset Price/Cash flow assets

NMF

Asset price/Adjusted net income

NMF

Asset Price/Sales

2.4x

Equity Price/Net income

NMF

g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
Debt to Equity Ratio

0.3109667391
-1.1%
-14.5724140268
0.4099329693
0.1927056693

1/29/2011

1/30/2010

1/30/2010

772.8

625.7

288.3

499.0

423.1

274.8

238.9

0.0

0.0

0.0

0.0

2.1

-10.5

3.2

3.2

-6.4

-29.0

0.7

-0.4

-7.1

-28.6

-3.2

-25.8

0.4

-0.4

-3.6

-25.5

1/29/2011

1/30/2010

13.4

13.2

4.5

4.5

206.4

149.0

20.4

18.8

244.6

185.5

76.5

62.2

178.5

182.3

2.5

1.5

257.4

246.0

502.0

431.5

51.4

47.0

39.3

37.8

0.0

0.0

2.4

1.9

36.6

30.5

129.7

117.2

111.8

57.4

44.6

35.8

215.8

221.1

502.0

431.5

23.5%

117.0%

35.4%

32.4%

-0.9%

-4.6%

0.6%

0.7%

41.4%

35.2%

10.3%

11.1%

Exhibit 1-G: Stanley Furniture Company (STLY)


Income Statement

12/31/2012

12/31/2011

98.6

104.6

Cost of goods sold

85.9

92.2

Selling, general, and administrative

Revenue

16.5

17.6

Depreciation

1.8

1.6

R&D

0.0

0.0

-39.0

-4.1

Other expenses (income)


Interest expenses (net)

2.3

2.3

31.0

-5.0

0.7

0.0

30.4

-5.0

Earnings before interest and taxes

33.4

-2.7

Adjusted taxes (all equity firm)

0.7

0.0

32.7

-2.7

12/31/2012

12/31/2011

Cash and equivalents

35.9

15.7

Accounts receivable

10.0

10.3

Inventory

35.1

31.1

6.1

5.5

87.2

62.5

Property, plant, and equipment

19.9

17.6

Goodwill and other intangibles

0.0

0.0

Other long-term assets

3.7

0.5

23.6

18.1

110.7

80.6

Accounts payable

8.7

10.0

Accrued expenses

6.2

6.5

Notes payable

0.0

0.0

Current maturities of long-term debt

0.0

0.0

Other current liabilities

0.0

0.0

14.9

16.5

Long-term debt and capital leases

0.0

0.0

Other liabilities

8.6

7.1

Common equity

87.2

57.0

110.7

80.6

Income before taxes


Taxes
Net Income
Adjusted income (all equity firm)

Net income (all equity firm)

Balance Sheet
Assets

Other current assets


Total current assets

Total long-term assets


Total assets
Liabilities

Total current liabilities

Total liabilities and shareholder's equity

Financial Data
Cash flow to assets
Stock price

22.7
4.5

Common shares outstanding

14.6

Market value of equity

65.6

Enterprise value

29.6

Ratios and Summary Data


Sales growth

-5.8%

-23.6%

Gross profit margin

12.9%

11.9%

Net profit margin

30.8%

-4.8%

AR/sales

10.2%

9.8%

Inventory/CGS

40.8%

33.7%

AP/CGS

10.1%

10.8%

Net investment

10.0

Multiples
Asset price/Cash flow assets

1.3x

Asset price/Adjusted net income

0.9x

Asset price/Sales

0.3x

Equity price/Net income

2.2x

g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
Debt to Equity Ratio

0.0942686841

30.8%
230.747694017
0.9788148875
0

12/31/2010

12/31/2009

12/31/2008

137.0

160.5

226.5

153.1

158.7

11.2

20.7

9.4

6.0

0.0

0.0

7.5

-9.5

3.5

3.7

-47.8

-19.1

-4.0

-7.4

-43.8

-11.7

-44.2

-15.4

-3.7

-5.9

-40.5

-9.5

12/31/2010

12/31/2009

25.5

41.8

13.8

22.2

25.7

37.2

6.9

8.3

72.0

109.6

16.0

31.4

0.0

9.1

0.4

0.5

16.4

40.9

88.4

150.5

9.1

11.6

7.7

9.2

0.0

0.0

2.4

1.4

0.0

0.0

19.2

22.3

0.0

26.4

7.4

8.9

61.8

92.9

88.4

150.4

-14.6%

-29.2%

-11.8%

1.1%

-32.0%

-7.3%

10.1%

13.8%

16.8%

23.5%

6.0%

7.3%

Exhibit 1-H: Tempur Sealy International Inc (TPX)


Income Statement

12/31/2012

12/31/2011

1402.9

1417.9

Cost of goods sold

688.3

674.8

Selling, general, and administrative

Revenue

408.7

341.7

Depreciation

42.0

51.0

R&D

15.6

9.9

0.3

0.2

Other expenses (income)


Interest expenses (net)

18.8

11.9

229.2

328.4

122.4

108.8

106.8

219.6

Earnings before interest and taxes

248.0

340.3

Adjusted taxes (all equity firm)

132.4

112.7

115.6

227.6

12/31/2012

12/31/2011

Cash and equivalents

554.3

111.4

Accounts receivable

Income before taxes


Taxes
Net Income
Adjusted income (all equity firm)

Net income (all equity firm)

Balance Sheet
Assets

129.8

142.4

Inventory

93.0

91.2

Other current assets

56.5

34.8

833.6

379.8

Property, plant, and equipment

186.0

160.5

Goodwill and other intangibles

279.2

279.8

26.7

18.1

491.9

458.4

1325.5

838.1

Accounts payable

85.8

69.9

Accrued expenses

84.3

52.6

Notes payable

0.0

0.0

Current maturities of long-term debt

0.0

0.0

16.1

45.1

186.2

167.6

Total current assets

Other long-term assets


Total long-term assets
Total assets
Liabilities

Other current liabilities


Total current liabilities
Long-term debt and capital leases

1025.0

585.0

Other liabilities

53.6

54.8

Common equity

60.7

30.8

1325.5

838.2

Total liabilities and shareholder's equity

Financial Data
Cash flow to assets

88.5

Stock price

31.5

Common shares outstanding

59.7

Market value of equity

1880.0

Enterprise value

2350.7

Ratios and Summary Data


Sales growth

-1.1%

28.3%

Gross profit margin

50.9%

52.4%

Net profit margin

7.6%

15.5%

AR/sales

9.3%

10.0%

Inventory/CGS

13.5%

13.5%

AP/CGS

12.5%

10.4%

Net investment

27.1

Multiples
Asset price/Cash flow assets

26.6x

Asset price/Adjusted net income

20.3x

Asset price/Sales
Equity price/Net income

g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
Debt to Equity Ratio

1.7x
17.6x

0.2934102142

7.6%
25.6426359505
1.8145195075
16.8863261944

12/31/2010

12/31/2009

12/31/2008

1105.4

831.2

927.8

550.0

437.5

258.1

208.6

44.0

40.2

7.4

0.0

0.5

-0.4

14.5

17.3

230.9

128.0

73.7

43.0

157.2

85.0

245.4

145.4

78.4

48.9

167.0

96.5

12/31/2010

12/31/2009

53.6

14.0

115.6

105.6

69.9

57.7

32.4

31.7

271.5

209.0

159.8

172.5

281.2

258.1

3.5

3.8

444.5

434.4

716.0

643.4

48.3

47.8

60.3

81.5

0.0

0.0

0.0

0.0

37.7

7.3

146.2

136.5

407.0

297.5

36.7

37.1

126.0

172.3

716.0

643.4

33.0%

-10.4%

50.2%

47.4%

14.2%

10.2%

10.5%

12.7%

12.7%

13.2%

8.8%

10.9%

0.9444444444

Exhibit 1-I: Williams-Sonoma Inc (WSM)


Income Statement

2/3/2013

1/29/2012

4042.9

3720.9

Cost of goods sold

2450.4

2261.0

Selling, general, and administrative

1035.9

940.1

134.5

130.6

0.0

0.0

13.0

7.5

Revenue

Depreciation
R&D
Other expenses (income)
Interest expenses (net)

-0.8

-0.1

410.0

381.8

153.2

144.9

256.7

236.9

Earnings before interest and taxes

409.2

381.7

Adjusted taxes (all equity firm)

152.9

144.9

256.2

236.9

2/3/2013

1/29/2012

424.6

502.8

Income before taxes


Taxes
Net Income
Adjusted income (all equity firm)

Net income (all equity firm)

Balance Sheet
Assets
Cash and equivalents
Accounts receivable

63.0

46.0

Inventory

640.0

553.5

Other current assets

189.2

174.2

1316.8

1276.4

Property, plant, and equipment

812.0

734.7

Goodwill and other intangibles

0.0

0.0

58.9

49.8

870.9

784.5

2187.7

2060.8

Accounts payable

259.2

218.3

Accrued expenses

120.6

111.8

Notes payable

0.0

0.0

Current maturities of long-term debt

1.7

1.8

275.6

239.9

657.1

571.8

Total current assets

Other long-term assets


Total long-term assets
Total assets
Liabilities

Other current liabilities


Total current liabilities
Long-term debt and capital leases

3.8

5.5

Other liabilities

217.7

228.3

Common equity

1309.1

1255.3

2187.7

2060.8

Total liabilities and shareholder's equity

Financial Data
Cash flow to assets
Stock price

126.0
43.8

Common shares outstanding

97.7

Market value of equity

4277.6

Enterprise value

3858.6

Ratios and Summary Data


Sales growth

8.7%

6.2%

39.4%

39.2%

Net profit margin

6.4%

6.4%

AR/sales

1.6%

1.2%

Inventory/CGS

26.1%

24.5%

AP/CGS

10.6%

9.7%

Net investment

130.3

Gross profit margin

Multiples
Asset price/Cash flow assets

30.6x

Asset price/Adjusted net income

15.1x

Asset price/Sales
Equity price/Net income

g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
Debt to Equity Ratio

1.0x
16.7x

0.0844982202

6.4%
0.8303784573
1.1374596995
0.0041783155

1/30/2011

1/31/2010

1/31/2009

3504.2

3102.7

3364.7

2130.3

1999.5

888.3

797.1

144.6

151.8

0.0

0.0

17.5

32.7

0.4

1.4

323.1

120.3

122.8

42.8

200.2

77.5

323.4

121.7

123.0

43.3

200.4

78.3

1/30/2011

1/31/2010

628.4

513.9

41.6

44.2

513.4

466.1

164.3

155.9

1347.6

1180.2

730.6

829.0

0.0

0.0

53.6

69.9

784.2

899.0

2131.7

2079.2

228.0

188.2

122.4

107.7

0.0

0.0

1.5

1.6

259.8

265.9

611.7

563.5

7.1

8.7

254.1

295.4

1258.9

1211.6

2131.7

2079.2

12.9%

-7.8%

39.2%

35.6%

5.7%

2.5%

1.2%

1.4%

24.1%

23.3%

10.7%

9.4%

Exhibit 2: Teuer Furniture


Income Statement

12/31/2012

12/31/2011

148.2

134.1

Cost of goods sold

62.0

55.5

Selling, general, and administrative

41.3

36.7

Depreciation

1.5

1.8

R&D

0.0

0.0

Other expenses (income)

7.4

6.7

Revenue

Interest expenses (net)

0.0

0.0

36.1

33.4

14.4

13.4

21.7

20.0

Earnings before interest and taxes

36.1

33.4

Adjusted taxes (all equity firm)

14.4

13.4

21.7

20.0

12/31/2012

12/31/2011

0.0

0.0

Accounts receivable

48.2

42.4

Inventory

33.3

29.2

0.0

0.0

Income before taxes


Taxes
Net Income
Adjusted income (all equity firm)

Net income (all equity firm)


Balance Sheet
Assets
Cash and equivalents

Other current assets


Total current assets

81.5

71.6

Property, plant, and equipment

3.9

3.1

Goodwill and other intangibles

0.0

0.0

Other long-term assets

0.0

0.0

3.9

3.1

85.5

74.8

Accounts payable

11.4

10.0

Accrued expenses

1.7

1.5

Notes payable

0.0

0.0

Current maturities of long-term debt

0.0

0.0

Other current liabilities

0.0

0.0

13.0

11.5

Long-term debt and capital leases

0.0

0.0

Other liabilities

0.0

0.0

Common equity

72.4

63.3

85.5

74.8

Total long-term assets


Total assets
Liabilities

Total current liabilities

Total liabilities and shareholder's equity


Financial Data
Cash flow to assets

12.5

Stock price
Common shares outstanding

9.9

Market value of equity

0.0

Enterprise value

0.0

Ratios and Summary Data


Sales growth

10.5%

20.3%

Gross profit margin

58.2%

58.6%

Net profit margin

14.6%

14.9%

AR/sales

32.5%

31.6%

Inventory/CGS

53.8%

52.7%

AP/CGS

18.3%

18.0%

Net investment

9.1

Multiples
Asset Price/Cash flow assets

0.0x

Asset price/Adjusted net income

0.0x

Asset Price/Sales

0.0x

Equity Price/Net income

0.0x

g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
Debt to Equity Ratio

0.126258465

14.6%
0.7667289419
1
0

12/31/2010

12/31/2009

12/31/2008

111.5

90.7

79.2

49.1

47.3

32.5

29.6

2.0

2.2

0.0

0.0

5.6

5.4

0.0

0.0

22.2

6.2

8.9

0.5

13.3

5.6

22.2

6.2

8.9

0.5

13.3

5.6

12/31/2010

12/31/2009

0.0

0.0

36.6

29.1

26.8

24.9

0.0

0.0

63.4

53.9

3.8

5.1

0.0

0.0

0.0

0.0

3.8

5.1

67.3

59.0

9.1

8.3

1.4

1.2

0.0

0.0

0.0

0.0

0.0

0.0

10.5

9.5

0.0

0.0

0.0

0.0

56.8

49.6

67.3

59.0

22.9%

14.5%

56.0%

47.8%

12.0%

6.2%

32.9%

32.0%

54.6%

52.6%

18.6%

17.5%

1.49697

355.68 35.76471

Exhibit: Comparable Firm Characteristics


Firm Characteristic
Online
Manufacturing

BSET
N
Y

ETH
N
Y

FBN
N
Y

HVT
N
N

LZB
N
Y

RN
Y
N

STLY
Y
Y

TPX
Y
Y

WSM
Y
N

International
Import

N
Y

Y
N

Y
N

Y
Y

Y
Y

N
N

N
Y

Y
N

Y
N

Lease

Teuer

N
N
N
N
Y

Exhibit: Multiples of Comparable Firms


Multiples
Growth CAGR of Sales
Growth CAGR of Net Income
g (equity)
Implied Growth
Net Income Margin
Degree of OL
Degree of FL
Debt to Equity Ratio

Assumption: Asset Discount Rate

BSET

HVT

LZB

5.0%
#VALUE!
14.2%

ETH
2.7%
#VALUE!
6.6%

-4.3%
-26.5%
-18.0%

4.5%
#VALUE!
-2.1%

0.1%
#VALUE!
1.5%

24.0%
-22.5%
31.1%

-15.0%
#VALUE!
9.4%

19.1%
6.2%
29.3%

9.2%
48.4%
8.4%

17.8%
56.7%
12.6%

0.0%
9.9%

0.0%
6.8%

0.0%
-4.4%

0.0%
2.2%

0.0%
7.2%

0.0%
-1.1%

0.0%
30.8%

0.0%
7.6%

0.0%
6.4%

0.0%
14.6%

-1239.3%
66.1%

748.9%
124.2%

-27.7%
392.1%

4464.2%
-4.2%

3759.4%
268.7%

-1457.2%
41.0%

23074.8%
97.9%

2564.3%
181.5%

83.0%
113.7%

76.7%
100.0%

0.02

0.48

1.92

0.07

0.02

0.19

0.00

16.89

0.00

0.00

12.10%

FBN

RN

STLY

TPX

WSM

Teuer

BSET & WSM selected on the basis of business and financial characteristics
Multiples

Asset price/Cash flow assets


Asset price/Adjusted net income
Asset price/Sales
Equity price/Net income

BSET

NMF
4.29
0.42
5.80

ncial characteristics
Teuer E.V.

NA
92.97
61.64
125.6

Share price

NA
9.35
6.20
12.63

WSM

30.63
15.06
0.95
16.66

Teuer E.V.

383.12
326.03
141.46
360.74

Share price

38.52
32.78
14.22
36.27

Avg of multiples

NA
9.68
0.69
11.23

Teur (EV)

NA
209.50
101.55
243.17

Share price

NA
21.07
10.21
24.45