Comparative Balance Sheet
Co. Name: Technology 80
Comparative Balance Sheet
Fiscal Y/E: 30-Aug 1997 1996 1995 1994 1993
Amounts in: (000's)
Assets
Cash and equivalents $284 $419 $926 $458 $1,199
Marketable securities 3,348 2,708 1,748 1,239 302
A/R - net 894 597 516 558 2,030
less: allowance for doubtful accts (12) (9) (9) (9) (1,587)
Accounts Receivable - net 882 588 507 549 443
Tax refund receivable 0 0 0 0 0
Inventory before lifo reserve 1,177 957 798 735 526
less: lifo reserve 0 0 0 0 0
Inventory - net 1,177 957 798 735 526
Prepaid expenses 0 0 0 0 4
Other current assets 26 29 42 31 0
Total Current Assets 5,717 4,701 4,021 3,012 2,474
Deferred tax assets 191 113 84 314 0
Property, plant, and equipment 497 448 426 405 388
less: accumulated depreciation (396) (364) (336) (339) (324)
Property, plant, and equipment - net 101 84 90 66 64
Investments in affiliates 0 0 0 0 0
Intangible assets 0 0 0 0 0
Other non-current assets 0 0 0 0 0
Total Noncurrent Assets 292 197 174 380 64
Total Assets $6,009 $4,898 $4,195 $3,392 $2,538
Liabilities
Accounts payable $95 $49 $51 $57 $52
Accrued expenses payable 647 292 215 197 156
ST notes payable 0 0 0 0 23
Current portion - LT debt and cap. leases 0 0 0 0 0
Interest payable 0 0 0 0 0
Dividends payable 0 0 0 0 0
Income taxes payable 37 206 0 0 0
Other current liabilities 285 0 0 25 0
Total Current Liabilities 1,064 547 266 279 231
LT debt 0 0 0 0 0
LT capitalized lease obligations 0 0 0 0 0
Deferred tax liability 0 0 72 0 0
Other noncurrent liabilities 0 0 0 0 0
Total Noncurrent Liabilities 0 0 72 0 0
Total Liabilities 1,064 547 338 279 231
Stockholder's Equity
Minority interest 0 0 0 0 0
Preferred stock 0 0 0 0 0
Common stock 3,263 3,239 3,224 3,208 3,362
Retained earnings(deficit) 1,948 1,215 550 (95) (1,055)
FX translation and long-term MES gain(loss) (266) (103) 83 0 0
Stock held in (Treasury) 0 0 0 0 0
Total Stockholder's Equity 4,945 4,351 3,857 3,113 2,307
Total Liabilities and Stockholder's Equity $6,009 $4,898 $4,195 $3,392 $2,538
Page 1
Comparative Income Statement
Co. name: Technology 80
Comparative Income Statement
Fiscal Y/E: 30-Aug 1997 1996 1995 1994 1993
Amounts in: (000's)
Sales - net $4,919 $4,207 $3,668 $3,204 $2,759
Other revenues - net 0 0 0 0 0
Other revenues - net 0 0 0 0 0
Other revenues - net 0 0 0 0 0
Total revenues 4,919 4,207 3,668 3,204 2,759
Cost of goods sold excl. dep'n (1,667) (1,451) (1,280) (1,100) (971)
Depreciation in cost of goods sold (35) (28) (32) (26) (30)
Gross profit 3,217 2,728 2,356 2,078 1,758
Operating expenses excl dep'n & amort'n (2,405) (1,952) (1,601) (1,460) (1,253)
Dep'n and amort'n in operating expenses 0 0 0 0 0
Operating income 812 776 755 618 505
Interest income 138 129 113 53 39
Interest expense 0 0 0 0 0
Gain (loss) sale of assets 145 82 117 0 0
Other income (expense) 0 0 0 (20) (58)
Income from investments 0 0 0 0 0
Income before taxes & extra. items 1,095 987 985 651 486
Income tax expense (credit) 362 322 340 271 5
Income before extra. items 733 665 645 380 481
Extraordinary gain (loss) 0 0 0 0 0
Discontinued operations gain (loss) 0 0 0 0 0
Minority interest in (income) loss 0 0 0 0 0
Accounting change gain (loss) 0 0 0 580 0
Net Income (loss) $733 $665 $645 $960 $481
Cash dividend - preferred stock 0 0 0 0 0
Cash dividend - common stock 0 0 0 0 0
Other inc (dec) in retained earnings 0 0 0 0 0
Change in Retained Earnings $733 $665 $645 $960 $481
Page 2
Common Size Balance Sheet
Co. Name: Technology 80
Common Size Balance Sheet
Fiscal Y/E: 30-Aug 1997 1996 1995 1994 1993
Fiscal Y/E: (%'s)
Assets
Cash and equivalents 4.73% 8.55% 22.07% 13.50% 47.24%
Marketable securities 55.72% 55.29% 41.67% 36.53% 11.90%
A/R - net 14.88% 12.19% 12.30% 16.45% 79.98%
less: allowance for doubtful accts 0.20% 0.18% 0.21% 0.27% 62.53%
Accounts Receivable - net 14.68% 12.00% 12.09% 16.19% 17.45%
Tax refund receivable 0.00% 0.00% 0.00% 0.00% 0.00%
Inventory before lifo reserve 19.59% 19.54% 19.02% 21.67% 20.72%
less: lifo reserve 0.00% 0.00% 0.00% 0.00% 0.00%
Inventory - net 19.59% 19.54% 19.02% 21.67% 20.72%
Prepaid expenses 0.00% 0.00% 0.00% 0.00% 0.16%
Other current assets 0.43% 0.59% 1.00% 0.91% 0.00%
Total Current Assets 95.14% 95.98% 95.85% 88.80% 97.48%
Deferred tax assets 3.18% 2.31% 2.00% 9.26% 0.00%
Property, plant, and equipment 8.27% 9.15% 10.15% 11.94% 15.29%
less: accumulated depreciation 6.59% 7.43% 8.01% 9.99% 12.77%
Property, plant, and equipment - net 1.68% 1.71% 2.15% 1.95% 2.52%
Investments in affiliates 0.00% 0.00% 0.00% 0.00% 0.00%
Intangible assets 0.00% 0.00% 0.00% 0.00% 0.00%
Other non-current assets 0.00% 0.00% 0.00% 0.00% 0.00%
Total Noncurrent Assets 4.86% 4.02% 4.15% 11.20% 2.52%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00%
Liabilities
Accounts payable 1.58% 1.00% 1.22% 1.68% 2.05%
Accrued expenses payable 10.77% 5.96% 5.13% 5.81% 6.15%
ST notes payable 0.00% 0.00% 0.00% 0.00% 0.91%
Current portion - LT debt and cap. leases 0.00% 0.00% 0.00% 0.00% 0.00%
Interest payable 0.00% 0.00% 0.00% 0.00% 0.00%
Dividends payable 0.00% 0.00% 0.00% 0.00% 0.00%
Income taxes payable 0.62% 4.21% 0.00% 0.00% 0.00%
Other current liabilities 4.74% 0.00% 0.00% 0.74% 0.00%
Total Current Liabilities 17.71% 11.17% 6.34% 8.23% 9.10%
LT debt 0.00% 0.00% 0.00% 0.00% 0.00%
LT capitalized lease obligations 0.00% 0.00% 0.00% 0.00% 0.00%
Deferred tax liability 0.00% 0.00% 1.72% 0.00% 0.00%
Other noncurrent liabilities 0.00% 0.00% 0.00% 0.00% 0.00%
Total Noncurrent Liabilities 0.00% 0.00% 1.72% 0.00% 0.00%
Total Liabilities 17.71% 11.17% 8.06% 8.23% 9.10%
Stockholder's Equity
Minority interest 0.00% 0.00% 0.00% 0.00% 0.00%
Preferred stock 0.00% 0.00% 0.00% 0.00% 0.00%
Common stock 54.30% 66.13% 76.85% 94.58% 132.47%
Retained earnings(deficit) 32.42% 24.81% 13.11% -2.80% -41.57%
FX translation and long-term MES gain(loss) -4.43% -2.10% 1.98% 0.00% 0.00%
Stock held in (Treasury) 0.00% 0.00% 0.00% 0.00% 0.00%
Total Stockholder's Equity 82.29% 88.83% 91.94% 91.77% 90.90%
Total Liabilities and Stockholder's Equity 100.00% 100.00% 100.00% 100.00% 100.00%
Page 3
Common Size Income Statement
Co. name: Technology 80
Common Size Income Statement
Fiscal Y/E: 30-Aug 1997 1996 1995 1994 1993
Amounts in: (%'s)
Sales - net 100.00% 100.00% 100.00% 100.00% 100.00%
Other revenues - net 0.00% 0.00% 0.00% 0.00% 0.00%
Other revenues - net 0.00% 0.00% 0.00% 0.00% 0.00%
Other revenues - net 0.00% 0.00% 0.00% 0.00% 0.00%
Total revenues 100.00% 100.00% 100.00% 100.00% 100.00%
Cost of goods sold 33.89% 34.49% 34.90% 34.33% 35.19%
Depreciation in cost of goods sold 0.71% 0.67% 0.87% 0.81% 1.09%
Gross profit 65.40% 64.84% 64.23% 64.86% 63.72%
Operating expenses 48.89% 46.40% 43.65% 45.57% 45.42%
Dep'n and amort'n in operating expenses 0.00% 0.00% 0.00% 0.00% 0.00%
Operating income 16.51% 18.45% 20.58% 19.29% 18.30%
Interest income 2.81% 3.07% 3.08% 1.65% 1.41%
Interest expense 0.00% 0.00% 0.00% 0.00% 0.00%
Gain (loss) sale of assets 2.95% 1.95% 3.19% 0.00% 0.00%
Other income (expense) 0.00% 0.00% 0.00% -0.62% -2.10%
Income from investments 0.00% 0.00% 0.00% 0.00% 0.00%
Income before taxes & extra. items 22.26% 23.46% 26.85% 20.32% 17.62%
Income tax expense (credit) 7.36% 7.65% 9.27% 8.46% 0.18%
Income before extra. items 14.90% 15.81% 17.58% 11.86% 17.43%
Extraordinary gain (loss) 0.00% 0.00% 0.00% 0.00% 0.00%
Discontinued operations gain (loss) 0.00% 0.00% 0.00% 0.00% 0.00%
Minority interest in (income) loss 0.00% 0.00% 0.00% 0.00% 0.00%
Accounting change gain (loss) 0.00% 0.00% 0.00% 18.10% 0.00%
Net Income (loss) 14.90% 15.81% 17.58% 29.96% 17.43%
Cash dividend - preferred stock 0.00% 0.00% 0.00% 0.00% 0.00%
Cash dividend - common stock 0.00% 0.00% 0.00% 0.00% 0.00%
Other inc (dec) in retained earnings 0.00% 0.00% 0.00% 0.00% 0.00%
Change in Retained Earnings 14.90% 15.81% 17.58% 29.96% 17.43%
Page 4
Cash Flow Analysis
Co. name: Technology 80
Cash Flow Analysis
Fiscal Y/E: 30-Aug 1997 1996 1995 1994
Amounts in: (000's)
Sales - net $4,919 $4,207 $3,668 $3,204
Change in receivables (294) (81) 42 (106)
CASH FROM SALES 4,625 4,126 3,710 3,098
Cost of goods sold excl dep'n (1,667) (1,451) (1,280) (1,100)
Change in inventories (220) (159) (63) (209)
Change in payables 46 (2) (6) 5
CASH PRODUCTION COSTS (1,841) (1,612) (1,349) (1,304)
GROSS CASH PROFITS 2,784 2,514 2,361 1,794
Operating expense excl dep'n & amort'n (2,405) (1,952) (1,601) (1,460)
Change in prepaids 0 0 0 4
Change in accruals 355 77 18 41
Cash operating expense (2,050) (1,875) (1,583) (1,415)
CASH AFTER OPERATIONS 734 639 778 379
Misc. cash income 426 142 77 607
Income taxes paid (609) (217) (38) (585)
NET CASH AFTER OPERATIONS 551 564 817 401
Interest expense 0 0 0 0
Dividends paid 0 0 0 0
Financing costs 0 0 0 0
NET CASH INCOME 551 564 817 401
Current portion long-term debt 0 0 0 0
CASH AFTER DEBT AMORTIZATION 551 564 817 401
Capital expenditures - tangible 93 60 61 (28)
Capital expenditures - intangible 0 0 0 0
ST and LT Investments (640) (960) (509) (937)
FINANCING SURPLUS (REQUIREMENTS) 4 (336) 369 (564)
Change in short-term debt 0 0 0 (23)
Change in long-term debt 0 0 0 0
Change in equity (139) (171) 99 (154)
Total external financing (139) (171) 99 (177)
Cash after financing ($135) ($507) $468 ($741)
Actual change in cash ($135) ($507) $468 ($741)
Net income + depreciation 768 693 677 986
Miscellaneous cash income detail:
Interest income 138 129 113 53
Dividend income 0 0 0 0
Other income (expense) 0 0 0 (20)
Other current assets 3 13 (11) (31)
Other non-current assets 0 0 0 0
Other current liabilities 285 0 (25) 25
Other noncurrent liabilities 0 0 0 0
Extraordinary gain (loss) 0 0 0 0
Discontinued operations gain (loss) 0 0 0 0
Accounting change gain (loss) 0 0 0 580
Miscellaneous cash income 426 142 77 607
Page 5
Ratios Report
Co. name: Technology 80
Financial Ratios
Fiscal Y/E: 30-Aug 1997 1996 1995 1994
Amounts In: (000's & %'s)
GROWTH RATIOS:
Sales - net growth % 16.92% 14.69% 14.48% 16.13%
net
Other revenues - growth % 0.00% 0.00% 0.00% 0.00%
net
Other revenues - growth % 0.00% 0.00% 0.00% 0.00%
net
Other revenues - growth % 0.00% 0.00% 0.00% 0.00%
Total revenues growth % 16.92% 14.69% 14.48% 16.13%
Net income growth % 10.23% 3.10% -32.81% 99.58%
Total assets growth % 22.68% 16.76% 23.67% 33.65%
Total liabilities growth % 94.52% 61.83% 21.15% 20.78%
Net worth growth % 13.65% 12.81% 23.90% 34.94%
PROFITABILITY RATIOS:
Gross profit / Total revenues 65.40% 64.84% 64.23% 64.86%
SG&A / Total revenues 48.89% 46.40% 43.65% 45.57%
Cushion % (Gross margin - SG&A) 16.51% 18.45% 20.58% 19.29%
Depreciation / Total revenues 0.71% 0.67% 0.87% 0.81%
Operating profit / Total revenues 16.51% 18.45% 20.58% 19.29%
R & D / Total revenues 14.31% 15.00% 13.03% 12.86%
Interest expense / Total revenues 0.00% 0.00% 0.00% 0.00%
Operating profit - Interest expense / Total revenues 16.51% 18.45% 20.58% 19.29%
Net income / Total revenues 14.90% 15.81% 17.58% 29.96%
Pretax Return on average assets 20.08% 21.71% 25.97% 21.96%
Return on average equity 15.77% 16.20% 18.51% 35.42%
COVERAGE RATIOS:
Interest coverage (EBIT / Interest) (i.e, accrual earnings coverage) 0.00 0.00 0.00 0.00
3.12
EBITDA / Taxes + Interest + CPLTD (i.e., WC coverage of taxes, interest & CPLTD) 3.15 2.99 2.50
EBIDA / Interest + CPLTD (i.e, WC coverage of interest & CPLTD) 0.00 0.00 0.00 0.00
NI + Dep'n & Amort'n / CPLTD (i.e., WC coverage of CPLTD) 0.00 0.00 0.00 0.00
ACTIVITY RATIOS:
Receivables in days 65.45 51.01 50.45 62.54
Inventory in days 252.41 236.18 222.00 238.25
Payables in days 20.37 12.09 14.19 18.48
Total assets in days 445.88 424.95 417.44 386.42
LIQUIDITY RATIOS:
Working capital $4,653 $4,154 $3,755 $2,733
Quick ratio 4.24 6.79 11.96 8.05
Current ratio 5.37 8.59 15.12 10.80
Sales / Working capital 1.06 1.01 0.98 1.17
LEVERAGE RATIOS:
Total liabilities / Tangible net worth 0.22 0.13 0.09 0.09
Long-term debt / Net fixed assets 0.00 0.00 0.00 0.00
CASH POSITION:
Cash margin (Gross cash profit / Total revenues) 56.60% 59.76% 64.37% 55.99%
Cash coverage (NCAO / Fin costs+CPLTD) 0.00 0.00 0.00 0.00
Cash and marketable securities per share $2.11 $1.81 $1.61 $1.06
Net cash income $551 $564 $817 $401
NI + Dep'n & Amort'n $768 $693 $677 $986
Page 6
Ratios Report
SUSTAINABLE GROWTH & BANKRUPTCY:
Sustainable growth % 13.89% 15.71% 18.17% 0.00%
Z=1.2x1 + 1.4x2 + 3.3x3 + .6x4 + .999x5 3.44 3.43 3.48 2.96
MISCELLANEOUS RATIOS:
Price $3.25 $2.50 $2.38 $1.50
EPS (Primary) $0.43 $0.39 $0.39 $0.24
EPS (Fully diluted) $0.43 $0.39 $0.39 $0.24
Sales per share (Fully diluted) $2.85 $2.44 $2.21 $2.00
Cash after debt amortization per share (Fully diluted) $0.32 $0.33 $0.49 $0.25
Free cash flow per share (Fully diluted) $0.30 $0.31 $0.47 $0.23
Book value per share $3.08 $2.77 $2.47 $2.00
Price / EPS (Fully diluted) (i.e., PE ratio) 7.56 6.41 6.09 6.25
Price / Sales per share 1.14 1.03 1.07 0.75
Price / Cash after debt amortization per share 10.17 7.65 4.82 5.99
Price / Free cash flow per share 10.86 8.05 5.02 6.41
Price / Book value per share 1.05 0.90 0.96 0.75
NCAO less Interest/Net Income (i.e., EQ on cash dimension) 0.75 0.85 1.27 0.42
SEB EBIT $950 $905 $868 $671
SEB EBIT / Reported EBIT (i.e., EQ on persistence dimension) 0.87 0.92 0.88 1.03
SEB NI $637 $615 $556 $392
SEB NI / Reported NI (i.e., EQ on persistence dimension) 0.87 0.93 0.86 0.41
Net cash + ST inv's per share (i.e., net of LT debt) $2.26 $1.99 $1.71 $1.09
Intangibles per share $0.00 $0.00 $0.00 $0.00
Effective tax rate 33.06% 32.62% 34.52% 41.63%
Doubtful accounts / Accounts receivable 1.34% 1.51% 1.74% 1.61%
LIFO Reserve $0.00 $0.00 $0.00 $0.00
Depreciation rate 7.41% 6.41% 7.70% 6.56%
Average life - PPE 13.50 15.61 12.98 15.25
EPS effects of change in gross margin $0.01 $0.01 ($0.01) $0.78
EPS effects of change in operating expense ratio ($0.05) ($0.05) $0.03 ($0.55)
EPS effects of change in effective tax rate ($0.00) $0.01 $0.04 ($0.17)
ROE Analysis
SEB NI / Sales 12.94% 14.63% 15.15% 12.23%
Sales / TA 90.20% 92.53% 96.69% 108.06%
After-tax ROA 11.67% 13.54% 14.64% 13.22%
TA / Equity 117.33% 110.78% 108.85% 109.41%
ROE 13.69% 15.00% 15.94% 14.46%
Net cash & invs less debt / Equity 72.71% 70.67% 62.71% 59.00%
ROE adj for net cash 50.18% 51.13% 42.75% 35.27%
Average Capital Expenditures 77 61 17 0
SEB OI 711 676 587 407
SEB OI ROE 15.30% 16.46% 16.83% 15.02%
Cash Cycle in days 297 275 258 282
Average Cash Req's of Growth (203) (181) 0 0
SEB OCF 914 856 587 407
GM% change 0.56% 0.61% (0.63%) 64.86%
SGA% change 2.49% 2.75% (1.92%) 45.57%
R&D% change (0.69%) 1.97% 0.17% 12.86%
Op Profit% Change (1.94%) (2.14%) 1.30% 19.29%
Page 7
Cash Variance Report
Co. name: Technology 80
Cash Variance Report
Fiscal Y/E: 30-Aug 1997 1996 1995 1994
Amounts In: (000's)
GROWTH FACTORS SUMMARY:
Revenues $712 $539 $464 $0
Cost of goods sold (250) (193) (163) 0
SG&A expense (330) (235) (211) 0
Total growth impact on pretax profits 131 111 89 0
Receivables (100) (75) (80) 0
Inventory (144) (102) (121) 0
Payables 7 6 9 0
Total receivables, inventory & payables (236) (170) (192) 0
Total tax provision (35) (1) (139) 0
Deferred tax provision (13) (16) (80) 0
Taxes payable, net of refund receivable 8 0 0 0
Total tax effect (40) (17) (219) 0
Total growth impact ($145) ($75) ($321) $0
PROFITABILITY & EFFICIENCY FACTORS SUMMARY:
Cost of goods sold $27 $26 ($23) $0
SG&A expense (123) (116) 70 0
Total change in fundamental profitability (95) (90) 48 0
Receivables (194) (6) 122 0
Inventory (76) (57) 58 0
Payables 39 (8) (15) 0
Total receivables, inventory & payables (232) (72) 165 0
Total tax provision (5) 19 70 0
Deferred tax provision 36 (387) 696 0
Taxes payable, net of tax refund receivable (177) 206 0 0
Total tax effect (146) (162) 766 0
Total profitability & efficiency ($473) ($325) $978 $0
ACCOUNT CHANGE SUMMARY:
Change from prior year in revenues $712 $539 $464 $0
Cost of goods sold - growth factors (250) (193) (163) 0
Cost of goods sold - profitability factors 27 26 (23) 0
Change from prior year in cost of goods sold (223) (167) (186) 0
SG&A - growth factors (330) (235) (211) 0
SG&A - profitability factors (123) (116) 70 0
Change from prior year in SG&A (453) (351) (141) 0
Receivables - growth factors (100) (75) (80) 0
Receivables - efficiency factors (194) (6) 122 0
Change from prior year in receivables (294) (81) 42 0
Inventory - growth factors (144) (102) (121) 0
Inventory - efficiency factors (76) (57) 58 0
Change from prior year in inventory (220) (159) (63) 0
Payables - growth factors 7 6 9 0
Payables - efficiency factors 39 (8) (15) 0
Change from prior year in payables 46 (2) (6) 0
Total tax provision - growth factors (35) (1) (139) 0
Total tax provision - profitability factors (5) 19 70 0
Change from prior year in total tax provision (40) 18 (69) 0
Deferred tax provision - growth factors (13) (16) (80) 0
Deferred tax provision - efficiency factors 36 (387) 696 0
Change from prior year in deferred tax provision 23 (403) 616 0
Taxes payable, net - growth factors 8 0 0 0
Taxes payable, net - efficiency factors (177) 206 0 0
Change from prior year in taxes payable, net (169) 206 0 0
Page 8