Better Buy Inc

7/25/2019 Better Buy Inc

1/25

Income statement

2008

Revenue 33,125,000

COGS (21,696,875)

Gross proft 11,428,125

Operatin e!penses

"i!e# $as% operatin e!penses (2,000,000)&aria'e $as% operatin e!penses (5,300,000)

epre$iation e!pense (1,343,750)

*et operatin in$o+e 2,784,375

*on operatin in$o+e 300,000

arnins 'e-ore interest an# ta!es 3,084,375

.nterest e!pense (974,438)

arnins 'e-ore ta!es 2,109,937

/a!es (843,975)

*et in$o+e 1,265,962

ivi#en#s pai# (200,000)##ition to R 1,065,962

Balance Sheet 2007 2008

Cas% an# +areta'e se$urities 624,000 650,000

$$ounts re$eiva'e 6,651,500 7,102,000

.nventories 10,001,000 10,643,000

Current assets 17,276,500 18,395,000

*et 13,437,500 14,243,750

.nvest+ents 3,000,000 3,000,000

/ota 33,714,000 35,638,750

$$ounts paa'e 7,812,500 8,281,250

S%ortter+ #e't 6,875,000 7,287,500

Current ia'iities 14,687,500 15,568,749

on ter+ ia'iities 4,603,061 4,563,719

/ota ia'iities 19,290,561 20,132,468

e-erre# in$o+e ta!es 329,749 346,629

Co++on sto$ 10,000,000 10,000,000

Retaine# earnins 4,093,690 5,159,653

/ota oners euit 14,093,690 15,159,653

/ota ia'iities an# oners euit 33,714,000 35,638,750

Input Assumption

Revenue 6 $onstant rot%

COGS 64:8 per$entae o- sae

"i!e# $as% operatin e!penses 2,000,000 $onstant

&aria'e $as% operatin e!penses 16 per$entae o- sae

epre$iation e!pense 10 per$entae o- f!e


2/25

*on operatin in$o+e 300,000 $onstant

.nterest e!pense 7 per$entae o- inte

/a!es 40

ivi#en#s pai# 200,000 $onstant

Cas% an# +areta'e se$urities 2 per$entae o- sae

$$ounts re$eiva'e 21 per$entae o- sae

.nventories 33 per$entae o- sae*et 43 per$entae o- sae

.nvest+ents 3,000,000 $ostant

$$ounts paa'e 22:8 per$entae o- sae

S%ortter+ #e't 20:30 per$entae o- sae

e-erre# in$o+e ta!es 1 per$entae o- ta!

Co++on sto$ 10,000,000 $onstant

operatin C" 15

non operatin C" 10

Proforma Income Statement2010 2011

Revenue 37,219,250 39,452,405

COGS (24,192,513) (25,578,309)

Gross proft 13,026,737 13,874,096

Operatin e!penses

"i!e# $as% operatin e!penses (2,000,000) (2,000,000)

&aria'e $as% operatin e!penses (6,029,519) (6,338,687)

epre$iation e!pense (1,509,838) (1,600,428)

*et operatin in$o+e 3,487,380 3,934,981

*on operatin in$o+e 300,000 300,000

arnins 'e-ore interest an# ta!es 3,787,380 4,234,981

.nterest e!pense (888,841) (885,724)

arnins 'e-ore ta!es 2,898,539 3,349,257

/a!es (1,159,416) (1,339,703)

*et in$o+e 1,739,123 2,009,554

ivi#en#s pai# (200,000) (200,000)

##ition to R 1,539,123 1,809,554

Proforma Balance Sheet 2010 2011

!$ess Cas% 0

Cas% an# +areta'e se$urities 744,385 749,596

$$ounts re$eiva'e 8,113,797 8,442,815

.nventories 12,282,353 12,900,936

Current assets 21,140,534 22,093,347

*et 16,004,278 16,964,534

.nvest+ents 3,000,000 3,000,000

/ota 40,144,812 42,057,881


3/25

$$ounts paa'e 8,800,100 8,995,148

S%ortter+ #e't 8,188,235 8,008,838

Current ia'iities 16,988,335 17,003,987

on ter+ ia'iities 4,464,966 4,526,036

/ota ia'iities 21,453,301 21,530,022

e-erre# in$o+e ta!es 370,372 397,166Co++on sto$ 10,000,000 10,000,000

Retaine# earnins 8,321,139 10,130,693

/ota oners euit 18,321,139 20,130,693

/ota ia'iities an# oners euit 40,144,812 42,057,881

/ria sset 42,057,881

/ria ia'iities 37,531,846

u; on ter+ ia'iities (e!$ess $as%) 4,526,036

Firm FCF2011

*et operatin in$o+e 3,934,981

/a!es (1,573,992)

*O/ 2,360,988

us; epre$iation 1,600,428

ess; C< (2,560,684)

ess; C%ane in operatin net orin $apita (757,765)

.n$rease (#e$rease) in #e-erre# ta! 26,794

"ir+ "C" (-ro+ operation) 669,761

*on Operatin in$o+e a-ter ta! 180,000

"ir+ "C" avaia'e to investors 849,761

v o- "ir+ "C" (-ro+ operation) =2,985,096:81

& o- non operatin in$o+e =682,341:62

& o- /& fr+ "C" (-ro+ operation) =12,160,116

& o- /& non operatin in$o+e =4,336,364

=20,163,918:28

uit "C" 2011

*et in$o+e 2,009,554

.n$rease (#e$rease) in S/ e't (179,397)

.n$rease (#e$rease) in / e't 61,070

.n$rease (#e$rease) in #e-erre# ta! 26,794

us; epre$iation 1,600,428

ess; C< (2,560,684)

ess; C%ane in operatin net orin $apita (757,765)

uit "C" 200,000


4/25

2008 2009

C 78 77

Sensitivity analysis

Revenue rot% 2011 2012

849,761 980,5934

5

6

7

8

COGS>Saes 2011 2012

849,761 980,593

63

6465

66

68

*et >Saes 2011 2012

849,761 980,593

41

42

43

44

45

.nventor>saes 2011 2012

849,761 980,593

31

32

33

34

35

Revenue

!$ess Cas% / e't

562,280

4

5

6

7


5/25

8

COGS

!$ess Cas% / e't

562,280

63

6465

66

68

*et >Saes

!$ess Cas% / e't

0 562,280

41

42

4344

45

.nventor>saes

!$ess Cas% / e't

562,280

31

32

33

34

35


6/25

2009 2010 2008

35,112,500 37,219,250 100

(22,472,000) (24,192,513) 66

12,640,500 13,026,737 35

(2,000,000) (2,000,000) 6 (5,618,000) (6,029,519) 16

(1,424,375) (1,509,838) 4

3,598,125 3,487,380 8

300,000 ??? 1

3,898,125 3,787,380 9

(860,855) (888,841) 3

3,037,270 2,898,539 6

(1,214,908) (1,159,416) 3

1,822,362 1,739,123 4

(200,000) (200,000) 1 1,622,362 1,539,123 3

2009 2010 2007 2008

702,500 744,385 2 2

7,408,738 8,113,797 20 20

11,938,250 12,282,353 30 30

20,049,488 21,140,534 51 52

15,098,375 16,004,278 40 40

3,000,000 ??? 9 8

38,147,863 40,144,812 100 100

8,778,125 8,800,100 23 23

7,724,750 8,188,235 20 20

16,502,875 16,988,335 44 44

4,504,195 4,464,966 14 13

21,007,070 21,453,301 57 56

358,778 370,372 1 1

10,000,000 ??? 30 28

6,782,015 8,321,139 12 14

16,782,015 18,321,139 42 43

38,147,863 40,144,812 100 100

s

s

asset (t1)


7/25

rest 'earin #e't (t1)

s

s

ss

s

s

ia'iit

2012 201 201! 201"

41,819,549 44,328,722 46,988,446 49,807,752

(27,113,008) (28,739,788) (30,464,176) (32,292,026)

14,706,541 15,588,934 16,524,270 17,515,726

(2,000,000) (2,000,000) (2,000,000) (2,000,000)

(6,719,008) (7,122,148) (7,549,477) (8,002,446)

(1,696,454) (1,798,241) (1,906,136) (2,020,504)

4,291,080 4,668,544 5,068,657 5,492,776

300,000 300,000 300,000 300,000

4,591,080 4,968,544 5,368,657 5,792,776

(877,441) (859,652) (832,617) (795,433)

3,713,638 4,108,892 4,536,040 4,997,344

(1,485,455) (1,643,557) (1,814,416) (1,998,937)

2,228,183 2,465,335 2,721,624 2,998,406

(200,000) (200,000) (200,000) (200,000)

2,028,183 2,265,335 2,521,624 2,798,406

2012 201 201! 201"

0 0 0 0

794,572 842,246 892,781 946,348

8,949,384 9,486,347 10,055,528 10,658,859

13,674,993 14,495,492 15,365,222 16,287,135

23,418,948 24,824,085 26,313,530 27,892,342

17,982,406 19,061,350 20,205,031 21,417,333

3,000,000 3,000,000 3,000,000 3,000,000

44,401,354 46,885,435 49,518,562 52,309,675


8/25

9,534,857 10,106,949 10,713,366 11,356,168

8,489,369 8,998,731 9,538,654 10,110,974

18,024,226 19,105,679 20,252,020 21,467,141

3,791,377 2,895,799 1,824,671 562,280

21,815,603 22,001,478 22,076,691 22,029,421

426,875 459,746 496,035 536,01310,000,000 10,000,000 10,000,000 10,000,000

12,158,876 14,424,211 16,945,835 19,744,241

22,158,876 24,424,211 26,945,835 29,744,241

44,401,354 46,885,435 49,518,562 52,309,675

44,401,354 46,885,435 49,518,562 52,309,675

40,609,977 43,989,637 47,693,890 51,747,396

3,791,377 2,895,799 1,824,671 562,280

2012 201 201! 201" #$

4,291,080 4,668,544 5,068,657 5,492,776

(1,716,432) (1,867,418) (2,027,463) (2,197,111)

2,574,648 2,801,127 3,041,194 3,295,666

1,696,454 1,798,241 1,906,136 2,020,504

(2,714,326) (2,877,186) (3,049,817) (3,232,806)

(785,892) (833,045) (883,028) (936,010)

29,709 32,871 36,289 39,978

800,593 922,008 1,050,774 1,187,332 13,984,134

180,000 180,000 180,000 180,000 4,770,000

980,593 1,102,008 1,230,774 1,367,332

2012 201 201! 201"

2,228,183 2,465,335 2,721,624 2,998,406

480,530 509,362 539,924 572,319

(734,658) (895,579) (1,071,128) (1,262,392)

29,709 32,871 36,289 39,978

1,696,454 1,798,241 1,906,136 2,020,504

(2,714,326) (2,877,186) (3,049,817) (3,232,806)

(785,892) (833,045) (883,028) (936,010)

200,000 200,000 200,000 200,000


9/25

2010 2011 2012 201 201!

80 78 78 78 78

201 201! 201"

1,102,008 1,230,774 1,367,3321,545,155 1,649,865 837,228

1,328,432 1,447,628 1,376,559

1,102,008 1,230,774 1,367,332

865,739 998,858 1,141,327

619,481 751,428 893,928

201 201! 201"

1,102,008 1,230,774 1,367,332

1,633,952 1,420,664 28,304

1,367,980 1,512,705 784,1191,102,008 1,230,774 1,367,332

836,035 948,843 1,068,486

304,091 384,982 470,793

201 201! 201"

1,102,008 1,230,774 1,367,332

1,202,375 1,337,163 672,460

1,152,191 1,283,968 1,301,036

1,102,008 1,230,774 1,367,332

1,051,824 1,177,580 1,310,946

1,001,641 1,124,385 1,254,560

201 201! 201"

1,102,008 1,230,774 1,367,332

1,152,191 1,283,968 835,938

1,127,100 1,257,371 1,382,775

1,102,008 1,230,774 1,367,332

1,076,916 1,204,177 1,339,139

1,051,824 1,177,580 1,310,946


10/25


11/25

2009 2010 su+si

100 100 6

64 65 64:8

36 35

6 5 2,000,00016 16 16

4 4 10

10 9

1 1 300,000

11 10

2 2 7

9 8

3 3 40

5 5

1 1 200,0005 4

2009 2010

2 2 2

19 20 20

31 31 30

53 53

40 40 40

8 7 3,000,000

100 100

23 22 23

20 20 20

43 42

12 11

55 53

1 1 1

26 25 10,000,000

18 21

44 46

100 100


12/25


13/25

2011 2012 201

.nterest a-ter ta! 531,434 526,465 515,791

(.n$rease)#e$rease in S/ #e't 179,397 (480,530) (509,362)

(.n$rease)#e$rease in / #e't (61,070) 734,658 895,579

ivi#en#s 200,000 200,000 200,000

(.n$rease)#e$rease in CS

"C" "ir+ 849,761 980,593 1,102,008

2011 2012 201

ivi#en#s 200,000 200,000 200,000

ess; Sto$ issuan$e

us; Sto$ repur$%ase

uit "C" 200,000 200,000 200,000


14/25

201"

78


15/25


16/25

*et

$onstant rot% epre$iation e!pense

per$entae o- saes

$a$uate#

interest 'earin #e't

$onstant .nterest e!penseper$entae o- saes

per$entae o- f!e# asset (t1)

$a$uate#

$onstant

$a$uate#

per$entae o- ia'iities (t1)

$a$uate#

ta! rate ! @/

$a$uate#

$onstant$a$uate#

per$entae o- saes

per$entae o- saes

per$entae o- saes

$a$uate#

per$entae o- saes

$ostant

$a$uate#

per$entae o- saes

per$entae o- saes

$a$uate#

pu

$a$uate#

per$entae o- ta! ia'iit

$onstant


17/25


18/25

201! 201"

499,570 477,260

(539,924) (572,319)

1,071,128 1,262,392

200,000 200,000

1,230,774 1,367,332

201! 201"

200,000 200,000

200,000 200,000


19/25


20/25


21/25

2007 2008 2009 2010

13,437,500 14,243,750 15,098,375 16,004,278

(1,343,750) (1,424,375) (1,509,838)

10 10 10

11,478,061 11,851,219 12,228,945 12,653,201

(974,438) (860,855) (888,841)8 7 7


22/25


23/25


24/25


25/25

Better Buy Inc

Documents

Transcript of Better Buy Inc