MERCURY ACTION ATHLETIC Synergies & AssumptionsProject: MERCURY ACTION ATHLETICAnalysis: Synergies & Ass!"tions#ra$t: N%ooter: Har&ar' (siness P)lis*ingHarvard Business PublishingMERCURY ACTION ATHLETIC Synergies & AssumptionsSynergies:Working Capital Synergies: 1 +,#SI (ase Case -RE%./,#SI 01Synergy 2324Women's Casual - Sales Growth: 1 +,(ase Case A$t3 Yr3 + 2325/,Synergy Case A$t3 Yr3 + 6325Women's Casual - B!" #argin: 1 +,(ase Case A$t3 Yr3 + 2325/,Synergy Case A$t3 Yr3 + 7325Harvard Business PublishingMERCURY ATHLETIC Historic! Income Sttements$%tive Gear $dvantage - Histori%al !n%ome StatementsCase E4*i)it +&perating 'esults: "##$"##%"##& Re'enue $%#(1)$$&*()#$$)#("+& Less:Cost o$ 8oo's Sol' //69:+;/6+99>7> ,ross -ro.it ""&(%%)"/+(1"1"/%()*" Less:Selling E4"enses +/;9;2/+629>;+ Less:8eneral & A'!inistrati&e E4"enses 6+9>6;66976=6:97;96>6=96:: E0IT (/&)&&(%**($"# Less:Net Interest E4"ense 9/>7++9=7 Tot! Assets "/"(#%/"/&(%*&"$+(%)1 (iabilities ) &wners' *uity:Acconts Paya)le + 1=%&1="+73;5E0IT E0IT1A Net Inc= E0IT E0IT1A -;E 0;8Company Mrgin Mrgin Mrgin Mu!tip!e Mu!tip!e Mu!tip!e Mu!tip!e#&( S*oe Co!"any >3>5 :3+5 /3;5 1/=%> )=*> 1#=%? *=#? 1/=+? "=%?@+,Net 'e)t is 'e$ine' as 'e)t less cas* & cas* eAi&alentsNote:MarGet !lti"les are )ase' on t*ree year a&erages3HLTMH 'enotes latest t0el&e !ont*s3Harvard Business PublishingCompr3!e Compny An!ysisHarvard Business PublishingMERCURY ATHLETIC Historic! Income Sttement#er%ury $%tion $thleti% - Histori%al !n%ome Statements&perating 'esults: "##$"##%"##& Net Re'enue /$#(%)+/%+()+#$/1(1"1 Less:Cost o$ 8oo's Sol' +7=9++2/+97/+=9/>/+/9;26@=>6, @79//>, >/9/77 Total Assets +>=99;2+629==2/;29:/@>9+6>, 6/96 E(IT Margins +63+62962/+6;97;:+=;=9://+2927=+292:++97 I O"erating E4"enses incl'e an allocation o$ 'e"reciation $or eac* seg!ent3Harvard Business PublishingMERCURY ATHLETIC Se!ect BorecsteA 0!nce S2eet 1tSele%t Balan%e Sheet $%%ounts "##)"##+"##*"#1#"#11 Cas* Use' in O"erations --- --- --- --- /3