Exhibit 1
page 2 of 7
Flowell Electric Association, Inc.
Historical Balance Sheets
Years Ended December 31
2005 to 2009
Avg. Annual
Account Name 2005 2006 2007 2008 2009 Pct. Change
Current Assets:
Cash & Equivalents 125,340 128,340 178,128 67,949 36,461 -26.56%
Accounts Receivable, net 181,100 103,863 140,074 121,257 135,060 -7.07%
Patronage Capital Credit - DG&T 225,000 225,000 225,000 225,000 225,000 0.00%
Other Current Assets 17,087 17,026 -0.09%
Total Current Assets 548,527 457,203 543,202 414,206 413,547 -6.82%
Plant & Equipment:
Plant in Service 2,317,592 2,645,957 4,593,943 4,784,065 5,006,010 21.23%
Construction Work in Progress 250,379
Other PP&E
Total Plant & Equipment: 2,317,592 2,896,336 4,593,943 4,784,065 5,006,010 21.23%
1,351,277
Accumulated Depreciation & Amort. 1,420,275 1,481,789 1,597,595 1,718,918 6.20%
Net Plant & Equipment 966,315 1,476,061 3,112,154 3,186,470 3,287,092 35.81%
Other Assets:
Regulatory Assets
Goodwill
Investment in CFC and Others 71,752 72,152 79,103 94,038 104,855 9.95%
Total Other Assets 71,752 72,152 79,103 94,038 104,855 9.95%
Total Non-Current Assets 1,038,067 1,548,213 3,191,257 3,280,508 3,391,947 34.45%
Total Assets 1,586,594 2,005,416 3,734,459 3,694,714 3,805,494 24.45%
Current Liabilities:
Current Portion of LTD 119,442 23,402 38,445 37,952 39,923
Acounts Payable 259,932 474,098 366,917 327,882 304,483 4.03%
Accrued Expenses 169,195 95,895 101,385 103,476 34,174 -32.96%
Customer Deposits 11,107 1,882 1,764 1,740 1,340 -41.06%
Perpetual Line of Credit 250,000 250,000 250,000
Other Current and Accrued Liabilities -
Total Current Liabilities 559,676 595,277 758,511 721,050 629,920 3.00%
Long-Term Debt 98,654 325,251 1,631,773 1,593,821 1,553,898 99.22%
Deferred Income Taxes
Other Deferred Credits 8,482 7,069 5,656 4,243 2,830
Total LTD & Deferrals 107,136 332,320 1,637,429 1,598,064 1,556,728 95.24%
Total Liabilities 666,812 927,597 2,395,940 2,319,114 2,186,648 34.57%
Deferred Revenue - Impact Fees 88,532 96,223 104,709 129,809
Common Equity:
Patrons Capital 919,782 989,287 1,242,296 1,270,891 1,489,037 12.80%
Retained Earnings
Total Patronage Equity 919,782 989,287 1,242,296 1,270,891 1,489,037 12.80%
Total Liabilities & Equity 1,586,594 2,005,416 3,734,459 3,694,714 3,805,494 24.45%
Exhibit 1
page 7 of 7
Flowell Electric Association, Inc.
Common Size
Historical Balance Sheets
2005 to 2009
Account Name 2005 2006 2007 2008 2009 Wt. Average
Current Assets:
Cash & Equivalents 7.90% 6.40% 4.77% 1.84% 0.96% 3.62%
Accounts Receivable, net 11.41% 5.18% 3.75% 3.28% 3.55% 4.60%
Patronage Capital Credit - DG&T 14.18% 11.22% 6.02% 6.09% 5.91% 7.59%
Other Current Assets 1.08% 0.00% 0.00% 0.00% 0.45% 0.23%
Total Current Assets 34.57% 22.80% 14.55% 11.21% 10.87% 16.03%
Plant & Equipment:
Plant in Service 146.07% 131.94% 123.01% 129.48% 131.55% 130.49%
Construction Work in Progress 0.00% 12.49% 0.00% 0.00% 0.00% 1.69%
Other PP&E 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Plant & Equipment: 146.07% 144.43% 123.01% 129.48% 131.55% 132.18%
Accumulated Depreciation & Amort. 85.17% 70.82% 39.68% 43.24% 45.17% 51.06%
Net Plant & Equipment 60.90% 73.60% 83.34% 86.24% 86.38% 81.12%
Regulatory Assets 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Goodwill 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Investment in CFC and Others 4.52% 3.60% 2.12% 2.55% 2.76% 2.85%
Total Other Assets 4.52% 3.60% 2.12% 2.55% 2.76% 2.85%
Total Non-Current Assets 65.43% 77.20% 85.45% 88.79% 89.13% 83.97%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Current Liabilities:
Current Portion of LTD 7.53% 1.17% 1.03% 1.03% 1.05% 1.75%
Acounts Payable 16.38% 23.64% 9.83% 8.87% 8.00% 11.69%
Accrued Expenses 10.66% 4.78% 2.71% 2.80% 0.90% 3.40%
Customer Deposits 0.70% 0.09% 0.05% 0.05% 0.04% 0.12%
Perpetual Line of Credit 0.00% 0.00% 6.69% 6.77% 6.57% 5.06%
Other Current and Accrued Liabilities 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Current Liabilities 35.28% 29.68% 20.31% 19.52% 16.55% 22.02%
Long-Term Debt 6.22% 16.22% 43.70% 43.14% 40.83% 35.09%
Deferred Income Taxes 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other Deferred Credits 0.53% 0.35% 0.15% 0.11% 0.07% 0.19%
Total LTD & Deferrals 6.75% 16.57% 43.85% 43.25% 40.91% 35.29%
Total Liabilities 42.03% 46.25% 64.16% 62.77% 57.46% 57.30%
Deferred Revenue - Impact Fees 0.00% 4.41% 2.58% 2.83% 3.41% 2.83%
Common Equity:
Patrons Capital 57.97% 49.33% 33.27% 34.40% 39.13% 39.87%
Retained Earnings 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Patronage Equity 57.97% 49.33% 33.27% 34.40% 39.13% 39.87%
Total Liabilities & Equity 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Exhibit 1
page 1 of 7
Flowell Electric Association, Inc.
Historical Income Statements
Years Ended December 31
2005 to 2009
Avg. Annual
Account Name 2005 2006 2007 2008 2009 Pct. Change
Operating Sales and Revenues:
Operating Revenues 1,405,531 1,536,786 1,708,992 1,741,611 2,072,765 10.20%
Total Revenues 1,405,531 1,536,786 1,708,992 1,741,611 2,072,765 10.20%
Operating Expenses:
Cost of Purchased Power 725,230 825,092 837,007 854,059 924,116 6.25%
Administrative and General Expenses
Operating and Maintenance 257,168 350,730 232,002 393,167 455,014 15.33%
Depreciation and amortization 52,802 51,599 61,514 115,806 121,323 23.12%
Administrative and General 203,435 229,436 183,109 220,140 230,182 3.14%
Taxes, other than income taxes 12,078 14,419 15,444 25,337 25,536 20.58%
Total Operating Expenses 1,250,713 1,471,276 1,329,076 1,608,509 1,756,171 8.86%
Earnings From Operations 154,818 65,510 379,916 133,102 316,594 19.58%
Interest expense (net) 12,100 21,453 91,169 125,856 118,306 76.83%
Interest and Other Income (2,820) (2,787) (5,951) (2,794) (1,370) -16.51%
Loss (Gain) on Sale of Assets 11,690 8,269
Other (Income) Expense (1,413) (1,413) (1,413) (1,413) (1,413)
Total Other Income/Expense 19,557 25,522 83,805 121,649 115,523 55.90%
Earnings Before Taxes 135,261 39,988 296,111 11,453 201,071 10.42%
1
Other Capital Credits and Patronage Div,251 1,762 8,756 19,106 17,075
Income Taxes
Net Margin 136,512 41,750 304,867 30,559 218,146 12.43%
Preferred Stock Dividends - - - - -
Return of Patrons Capital
Exhibit 1
page 6 of 7
Flowell Electric Association, Inc.
Common Size
Historical Income Statements
2005 to 2009
Account Name 2005 2006 2007 2008 2009 Average
Operating Revenues:
Operating Revenues 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Revenues 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Operating Expenses:
Cost of Purchased Power 51.60% 53.69% 48.98% 49.04% 44.58% 49.20%
Administrative and General Expenses
Operating and Maintenance 18.30% 22.82% 13.58% 22.57% 21.95% 19.94%
Depreciation and amortization 3.76% 3.36% 3.60% 6.65% 5.85% 4.76%
Administrative and General 14.47% 14.93% 10.71% 12.64% 11.11% 12.60%
Taxes, other than income taxes 0.86% 0.94% 0.90% 1.45% 1.23% 1.10%
Total Operating Expenses 88.99% 95.74% 77.77% 92.36% 84.73% 87.60%
Earnings From Operations 11.01% 4.26% 22.23% 7.64% 15.27% 12.40%
Interest expense (net) 0.86% 1.40% 5.33% 7.23% 5.71% 4.36%
Interest and Other Income -0.20% -0.18% -0.35% -0.16% -0.07% -0.18%
Loss (Gain) on Sale of Assets 0.83% 0.54% 0.00% 0.00% 0.00% 0.24%
Other (Income) Expense -0.10% -0.09% -0.08% -0.08% -0.07% -0.08%
Total Other Income/Expense 1.39% 1.66% 4.90% 6.98% 5.57% 4.32%
Earnings Before Taxes 9.62% 2.60% 17.33% 0.66% 9.70% 8.08%
0
Other Capital Credits and Patronage Div.09% 0.11% 0.51% 1.10% 0.82% 0.57%
Income Taxes 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Net Margin 9.71% 2.72% 17.84% 1.75% 10.52% 8.64%
Preferred Stock Dividends 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Return of Patrons Capital 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Exhibit 1
page 4 of 7
Flowell Electric Association, Inc.
Historical Financial Ratios
Years Ended December 31
2005 to 2009
Ratio Group And Name 2005 2006 2007 2008 2009 Average
Short-term Liquidity Ratios:
Current 0.98 0.77 0.72 0.57 0.66 0.74
Quick 0.55 0.39 0.42 0.26 0.27 0.38
Days Revenues Receivable 35.35 27.43 27.64 24.53 28.74
Long-term Solvency Ratios:
Net Worth/Total Debt 1.38 1.07 0.52 0.55 0.68 0.84
Net Worth/Non Current Debt 8.59 2.98 0.76 0.80 0.96 2.81
Net Worth/Fixed Assets 0.95 0.67 0.40 0.40 0.45 0.57
Times Interest Earned 12.18 2.86 4.25 1.09 2.70 2.73
Profitability Ratios:
Return On Total Assets 9.34% 3.52% 13.80% 4.21% 8.97% 7.97%
Return On Total Capital 14.41% 5.22% 18.11% 5.27% 10.96% 10.79%
Return On Patrons Capital 14.79% 4.37% 27.32% 2.43% 15.81% 12.95%
Asset-utilization Ratios:
Sales/Cash 10.09 12.12 11.15 14.16 39.70 17.44
Sales/Accounts Receivable 7.04 10.79 14.01 13.33 16.17 12.27
Sales/Working Capital 47.70 -20.60 -9.67 -6.67 -7.92 -8.09
Sales/Fixed Assets 1.50 1.26 0.84 0.75 0.65 1.00
Sales/Total Assets 0.88 0.86 0.60 0.47 0.55 0.67
Loan Covenants:
Debt Service Coverage Ratio > 1.35 1.54 2.58 3.51 1.56 2.79 2.61
Capital Structure (Regulatory):
Long-Term Debt 9.69% 24.74% 56.78% 55.64% 51.07% 54.49%
Common Equity 90.31% 75.26% 43.22% 44.36% 48.93% 45.51%
Capital Structure:
Short-Term Debt 10.50% 1.75% 1.32% 1.31% 1.29% 1.31%
Long-Term Debt 8.67% 24.31% 56.03% 54.91% 50.40% 53.78%
Common Equity 80.83% 73.94% 42.65% 43.78% 48.30% 44.91%
Exhibit 1
Page 5 of 7
Flowell Electric Association, Inc.
Supplemental Information
Years Ended December 31 2005 to 2009
Avg. Annual
2005 2006 2007 2008 2009 Pct. Change
Operating Revenue
Residential Sales 153,978 165,866 188,828 191,738 212,532 8.39%
Irrigation Sales 1,088,089 1,194,269 1,335,201 1,360,956 1,630,213 10.64%
Commercial & Industrial Sales
Small (or Commercial) 132,590 138,050 147,795 167,035 199,228 10.72%
Large (or Industrial) 9,877 9,202 13,820 2,569 6,892 -8.60%
Other Sales or Public Authority 1,577 2,595 2,306 3,163 3,968 25.95%
Total 1,386,111 1,509,982 1,687,950 1,725,461 2,052,833
Kilowatt-hours Sold - Dollars
Residential Sales 2,228,216 2,443,890 2,685,733 2,639,057 2,642,372 4.35%
Irrigation Sales 19,805,542 22,121,092 23,265,715 23,056,320 25,297,016 6.31%
Commercial & Industrial Sales
Small (or Commercial) 2,068,811 2,001,563 2,080,349 2,292,887 2,483,136 4.67%
Large (or Industrial) 62,760 41,080 53,960 9,520 17,880 -26.94%
Other Sales or Public Authority 6,831 5,313 10,200 14,406 17,685 26.85%
Total 24,172,160 26,612,938 28,095,957 28,012,190 30,458,089 5.95%
Kilowatt-hours Sold - Percent
Residential Sales 9.22% 9.18% 9.56% 9.42% 8.68% -1.51%
Irrigation Sales 81.94% 83.12% 82.81% 82.31% 83.06% 0.34%
Commercial & Industrial Sales
Small (or Commercial) 8.56% 7.52% 7.40% 8.19% 8.15% -1.21%
Large (or Industrial) 0.26% 0.15% 0.19% 0.03% 0.06% -31.04%
Other Sales or Public Authority 0.03% 0.02% 0.04% 0.05% 0.06% 19.72%
Total 100.00% 100.00% 100.00% 100.00% 100.00%
Average Number of Customers
Residential 175 179 184 186 190 2.08%
Irrigation 151 152 161 161 163 1.93%
Commercial & Industrial
Small (or Commercial) 91 93 96 100 103 3.15%
Large (or Industrial) 1 1 1 1 1
Other Sales or Public Authority 2 2 2 2 2
Total 420 427 444 450 459 2.24%
Purchased Power
Kilowatt-Hours purchased 26,576,036 29,824,297 31,010,279 31,788,991 33,510,682 5.97%
Cost per Kilowatt-hour 2.70 2.77 2.70 2.68 2.75 0.46%
Kilowatt-Hours Purchased less Sales,403,876
2 3,211,359 2,914,322 3,776,801 3,052,593 3,071,790
Percentage Difference 9.05% 10.77% 9.40% 11.88% 9.11% 10.22%
Exhibit 1
page 3 of 7
Flowell Electric Association, Inc.
Historical Cash Flow Statements
Years Ended December 31
2005 2006 2007 2008 2009
Cash flows from operating activities:
Net Margin 136,512 41,750 304,867 30,559 218,146
Adjustments to reconcile net income
Depreciation and amortization 52,802 51,599 61,514 115,806 121,323
Accretion of deferred revenue (5,502) (6,238) (6,832)
Accretion of gain (Debt Restructure) (1,413) (1,413) (1,413) (1,413) (1,413)
Cumulative Affect of Accounting Chng and Other 141,640
Changes in Assets & Liabilities:
(Increase)/Decrease Accts Receivable 37,154 77,237 (36,211) 18,817 (13,803)
(Increase)/Decrease CFC Investment (1,225) (14,935) (10,817)
Increase/(Decrease) Accts Payable (81,207) 214,166 (107,181) (39,035) (99,655)
Increase/(Decrease) Impact Fees
Increase/(Decrease) Deposits 2,180 (9,225) (118) (24) (400)
Increase/(Decrease) Accrued Expense 19,217 2,055 6,253 127 (2,546)
Other Assets and Liabilities (625) 17,087 (7,526)
Net cash provided by operating activities 164,620 534,896 220,984 103,664 196,477
Cash flows from investing activities:
Additions to Utility Plant (282,066) (593,835) (1,697,607) (190,122) (221,945)
Retirement of Utility Plant 175,593 15,091
Proceeds from sales of assets
Other
Net cash used in investing activities (106,473) (578,744) (1,697,607) (190,122) (221,945)
Cash flows from financing activities:
Customer Advances and Impact Fees 75,355 13,177 13,193 14,724 31,932
Refund of Capital Credits (142,965) (96,487) (52,621)
Proceeds from new borrowings 250,000 1,600,000
Long-term debt repaid (18,118) (119,442) (34,161) (38,445) (37,952)
Other (247) (400)
Net cash provided by (used in) financing activities
(85,975) 46,848 1,526,411 (23,721) (6,020)
Change in cash and cash equivalents (27,828) 3,000 49,788 (110,179) (31,488)
Cash and cash equivalents at beginning of period
153,168 125,340 128,340 178,128 67,949
Cash and cash equivalents at end of period 125,340 128,340 178,128 67,949 36,461
1 FORECAST ASSUMPTIONS 11/28/2011 15:27
2
3 Company Name Flowell Electric Association, Inc.
4
5 Dividend Payout 2004 2005 2006 2007
6 Inflation (GDP) 2.50% Annual Rate 2.50%
7 Income Tax Rate 7.00% Approximate 2007 amount 0.000% 0.000% 0.000% 0.000%
8 Depreciation Rate 5.00%
9
10
11
12 Revenues 5.00% annualized 2008 plus inflation going forward
13 Other Revenues
14
15 Operating Expenses:
16 Cost of Purchased Power 48.53% Historical Average
17 Administrative and General Expenses 0.00% Historical Average
18 Operating and Maintenance 21.76% Historical Average 2005 2006e 2007e
19 Depreciation and amortization 2.42% Historical Average 2.2783% 2.8711% 2.7026%
20 Administrative and General 11.49%
21 Taxes, other than income taxes 1.34% inflation growth rate
22
23 Interest (Surplus Cash)/Add. Loans 2.00% Calculated on forecast sheet Annual Rate 3.5%
24 Interest expense (net) 5.16% of LTD (including Current) 2006 estimated weighted average yield on existing debt
25 Interest and Other Income -0.18% approximate current yield on money market funds
26 Loss (Gain) on Sale of Assets $9,980 avg. of hist. amounts calculation
27 Other (Income) Expense ($1,413) avg. of hist. amounts calculation
28 Other Capital Credits and Patronage Div $0 by assumption
29 Income Taxes 0.00% only pays income taxes on unregulated propane sub.
30
31 Preferred Stock Dividends 0.00% of pfd. Stock balance no preferred stock
32 Return of Patrons Capital 0.00% of patronage capital approximate 2004-2007 median
33
34 Cash & Equivalents 4.17% 1/24th of revenues assumes about two weeks of cash
35 Surplus Cash computed by forecast model
36 Accounts Receivable, net 6.22% of revenue approx. hist. average
37 Patronage Capital Credit - DG&T 5.91% of total assets approx. hist. average
38 Other Current Assets $17,057 of total assets approx. hist. average
39
40 Plant & Equipment:
41 Plant in Service 4.39% 2008 est. from Nov. balance sheet, after 2008 growth rate average of last year's Co. growth rate and inflation
42
43 Construction Work in Progress set at zero, plant in service is total amount
44
45 Other PP&E $0 latest year by assumption
46 2004 2005 2006 2007 2008
47 Accumulated Depreciation & Amort. 42.70% avg. % of PP&E 58.31% 53.68% 32.26% 33.39% 34.34% 42.39%
48
49 Regulatory Assets
50 Goodwill
51 Investment in CFC and Others $0 Constant approx. 2004-2007 hist. median
52
53 Current Portion of LTD 2.44% of LTD 2004 2005 2006 2007
54 Acounts Payable 8.44% of reveneues approx. 2004-2007 hist. avg. 18.49% 30.85% 21.47% 18.83% 22.41%
55 Accrued Expenses 100,825.00
56 Customer Deposits 36,610.00 Added per year approx. hist. avg. (2004-2007)
57 Perpetual Line of Credit 0.00% or revenues approx. hist. avg.
58 Other Current and Accrued Liabilities 0.00% of total assets approx. hist. average
59 Interest on LTD 6.00%
60 Long-Term Debt -2.44% of LTD (including Current)
61 Deferred Income Taxes 0.00% of plant in service approx. hist. average, 2004-2007
62 Other Deferred Credits ($1,413) of total assets approx. hist. average, 2004-2007
63 Additional Loans 7.00% calculated
64
65 Deferred Revenue - Impact Fees 2.83% fixed at latest year by assumption
66
67 Patrons Capital $0 annual growth 2004-2007 avg. growth to reflect addition of new patrons and remove some of retained earnings
68 Retained Earnings calculated
Exhibit 2
Page 2 of 5
Flowell Electric Association, Inc.
Forecast Balance Sheets
11/28/2011 15:27
Historical Historical Forecast Forecast Forecast Forecast ForecastAvg. Annual
Account Name 2008 2009 2010 2011 2012 2013 2014Pct. Change
Current Assets:
Cash & Equivalents 67,949 36,461 90,683 95,218 99,979 104,977 110,226 24.76%
Surplus Cash - - - - - - 1,151
Accounts Receivable, net 121,257 135,060 135,478 142,252 149,365 156,833 164,674 4.04%
Patronage Capital Credit - DG&T 225,000 225,000 225,000 225,000 225,000 225,000 225,000 0.00%
Other Current Assets - 17,026 17,057 17,057 17,057 17,057 17,057 0.04%
Total Current Assets 414,206 413,547 468,218 479,526 491,400 503,867 518,108 4.61%
Plant & Equipment:
Plant in Service 4,784,065 5,006,010 5,375,704 5,736,621 5,988,379 6,251,184 6,525,523 5.44%
Construction Work in Progress - - - - - - -
Other PP&E - - - - - - -
Total Plant & Equipment: 4,784,065 5,006,010 5,375,704 5,736,621 5,988,379 6,251,184 6,525,523 5.44%
1,597,595
Accumulated Depreciation & Amort. 1,718,918 1,920,214 2,074,312 2,206,802 2,344,010 2,461,142 7.44%
Net Plant & Equipment 3,186,470 3,287,092 3,455,489 3,662,310 3,781,576 3,907,174 4,064,381 4.34%
Other Assets:
Regulatory Assets - - - - - - -
Goodwill - - - - - - -
Investment in CFC and Others 94,038 104,855 111,146 117,815 124,884 132,377 140,320 6.00%
Total Other Assets 94,038 104,855 111,146 117,815 124,884 132,377 140,320 6.00%
Total Non-Current Assets 3,280,508 3,391,947 3,566,636 3,780,125 3,906,460 4,039,551 4,204,701 4.39%
Total Assets 3,694,714 3,805,494 4,034,854 4,259,651 4,397,860 4,543,418 4,722,809 4.41%
Current Liabilities:
Current Portion of LTD 37,952 39,923 37,845 37,670 38,495 36,976 35,142 -2.52%
Acounts Payable 327,882 304,483 340,451 359,419 371,080 383,362 398,499 5.53%
Accrued Expenses 103,476 34,174 100,825 100,825 100,825 100,825 100,825 24.16%
Customer Deposits 1,740 1,340 1,615 1,615 1,615 1,615 1,615 3.80%
Perpetual Line of Credit 250,000 250,000 250,000 250,000 250,000 250,000 250,000
Other Current and Accrued Liabilities - - - - - - -
Total Current Liabilities 721,050 629,920 730,736 749,528 762,015 772,778 786,081 4.53%
Long-Term Debt 1,593,821 1,553,898 1,516,053 1,479,130 1,443,106 1,407,960 1,373,669 -2.44%
Deferred Income Taxes - - - - - - -
Other Deferred Credits 4,243 2,830 1,417 4 - - -
Additional Loans - - 30,650 101,463 75,117 34,968 -
Total LTD & Deferrals 1,598,064 1,556,728 1,548,120 1,580,597 1,518,223 1,442,927 1,373,669 -2.47%
Total Liabilities 2,319,114 2,186,648 2,278,856 2,330,125 2,280,238 2,215,705 2,159,750 -0.25%
Deferred Revenue - Impact Fees 104,709 129,809 114,099 120,456 124,364 128,480 133,553 0.57%
Common Equity:
Patrons Capital 1,270,891 1,489,037 1,489,037 1,489,037 1,489,037 1,489,037 1,489,037 0.00%
Retained Earnings - - 152,862 320,033 504,221 710,196 940,469
Total Patronage Equity 1,270,891 1,489,037 1,641,899 1,809,070 1,993,258 2,199,233 2,429,506 10.29%
Total Liabilities & Equity 3,694,714 3,805,494 4,034,854 4,259,651 4,397,860 4,543,418 4,722,809 4.41%
Exhibit 2
Page 1 of 5
Flowell Electric Association, Inc.
Forecast Income Statements
11/28/2011 15:27
Historical Historical Forecast Forecast Forecast Forecast Forecast Avg. Annual
Account Name 2008 2009 2010 2011 2012 2013 2014 Pct. Change
Operating Revenues 1,741,611 2,072,765 2,176,403 2,285,223 2,399,485 2,519,459 2,645,432 5.00%
Additional Revenue Requirements - - - - - - -
Total Revenues 1,741,611 2,072,765 2,176,403 2,285,223 2,399,485 2,519,459 2,645,432 5.00%
Operating Expenses:
Cost of Purchased Power 854,059 924,116 1,056,273 1,109,086 1,164,540 1,222,768 1,283,906 6.80%
Administrative and General Expenses
Operating and Maintenance 393,167 455,014 473,661 497,344 522,211 548,322 575,738 4.82%
Depreciation and amortization 115,806 121,323 124,263 127,275 130,359 133,519 136,755 2.42%
Administrative and General 220,140 230,182 249,993 262,492 275,617 289,398 303,868 5.71%
Taxes, other than income taxes 25,337 25,536 29,238 30,699 32,234 33,846 35,538 6.83%
Total Operating Expenses 1,608,509 1,756,171 1,933,427 2,026,897 2,124,962 2,227,852 2,335,805 5.87%
Earnings From Operations 133,102 316,594 242,976 258,327 274,522 291,607 309,627 -0.44%
Interest (Surplus Cash)/Add. Loans - - 1,073 4,624 6,180 3,853 (12)
Interest expense (net) 125,856 118,306 94,432 92,121 89,952 87,796 85,612 -6.26%
Interest and Other Income (2,794) (1,370) (3,977) (4,176) (4,385) (4,604) (4,834) 28.68%
Loss (Gain) on Sale of Assets - -
Other Income (Expense) (1,413) (1,413) (1,413) (1,413) (1,413) (1,413) (1,413)
Total Other Income/Expense 121,649 115,523 90,114 91,156 90,334 85,632 79,354 -7.24%
Earnings Before Taxes 11,453 201,071 152,862 167,171 184,188 205,975 230,274 2.75%
Patronage Capital Credits 19,106 17,075 - - - - -
Income Taxes - - - - - - -
Net Margin 30,559 218,146 152,862 167,171 184,188 205,975 230,274 1.09%
Preferred Stock Dividends - - - - - - -
Return of Patronage Capital - - - - - - -
Exhibit 2
Page 5 of 5
Flowell Electric Association, Inc.
Common Size
Forecast Balance Sheets
Historical Historical Forecast Forecast Forecast Forecast Forecast Forecast
Account Name 2007 2009 2010 2011 2012 2013 2014 Average
Current Assets:
Cash & Equivalents 1.84% 0.96% 2.25% 2.24% 2.27% 2.31% 2.33% 2.28%
Surplus Cash 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.02% 0.01%
Accounts Receivable, net 3.28% 3.55% 3.36% 3.34% 3.40% 3.45% 3.49% 3.41%
Patronage Capital Credit - DG&T 6.09% 5.91% 5.58% 5.28% 5.12% 4.95% 4.76% 5.12%
Other Current Assets 0.00% 0.45% 0.42% 0.40% 0.39% 0.38% 0.36% 0.39%
Total Current Assets 11.21% 10.87% 11.60% 11.26% 11.17% 11.09% 10.97% 11.21%
Plant & Equipment:
Plant in Service 129.48% 131.55% 133.23% 134.67% 136.17% 137.59% 138.17% 136.06%
Construction Work in Progress 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other PP&E 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Plant & Equipment: 129.48% 131.55% 133.23% 134.67% 136.17% 137.59% 138.17% 136.06%
Accumulated Depreciation & Amort. 43.24% 45.17% 47.59% 48.70% 50.18% 51.59% 52.11% 50.12%
Net Plant & Equipment 86.24% 86.38% 85.64% 85.98% 85.99% 86.00% 86.06% 85.94%
Other Assets:
Regulatory Assets 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Goodwill 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Investment in CFC and Others 2.55% 2.76% 2.75% 2.77% 2.84% 2.91% 2.97% 2.85%
Total Other Assets 2.55% 2.76% 2.75% 2.77% 2.84% 2.91% 2.97% 2.85%
Total Non-Current Assets 88.79% 89.13% 88.40% 88.74% 88.83% 88.91% 89.03% 88.79%
Total Assets 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Current Liabilities:
Current Portion of LTD 1.03% 1.05% 0.94% 0.88% 0.88% 0.81% 0.74% 0.85%
Acounts Payable 8.87% 8.00% 8.44% 8.44% 8.44% 8.44% 8.44% 8.44%
Accrued Expenses 2.80% 0.90% 2.50% 2.37% 2.29% 2.22% 2.13% 2.30%
Customer Deposits 0.05% 0.04% 0.04% 0.04% 0.04% 0.04% 0.03% 0.04%
Perpetual Line of Credit 6.77% 6.57% 6.20% 5.87% 5.68% 5.50% 5.29% 5.69%
Other Current and Accrued Liabilities 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Current Liabilities 19.52% 16.55% 18.11% 17.60% 17.33% 17.01% 16.64% 17.31%
Long-Term Debt 43.14% 40.83% 37.57% 34.72% 32.81% 30.99% 29.09% 32.88%
Deferred Income Taxes 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other Deferred Credits 0.11% 0.07% 0.04% 0.00% 0.00% 0.00% 0.00% 0.01%
Additional Loans 0.00% 0.00% 0.76% 2.38% 1.71% 0.77% 0.00% 1.10%
Total LTD & Deferrals 43.25% 40.91% 38.37% 37.11% 34.52% 31.76% 29.09% 33.99%
Total Liabilities 62.77% 57.46% 56.48% 54.70% 51.85% 48.77% 45.73% 51.30%
Deferred Revenue - Impact Fees 2.83% 3.41% 2.83% 2.83% 2.83% 2.83% 2.83% 2.83%
Common Equity:
Patrons Capital 34.40% 39.13% 36.90% 34.96% 33.86% 32.77% 31.53% 33.91%
Retained Earnings 0.00% 0.00% 3.79% 7.51% 11.47% 15.63% 19.91% 11.97%
Total Patronage Equity 34.40% 39.13% 40.69% 42.47% 45.32% 48.40% 51.44% 45.87%
Total Liabilities & Equity 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Exhibit 2
Page 4 of 5
Flowell Electric Association, Inc.
Common Size
Forecast Income Statements
Historical Historical Forecast Forecast Forecast Forecast Forecast Forecast
Account Name 2007 2009 2010 2011 2012 2013 2014 Average
Operating Revenues:
Operating Revenues 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Additional Revenue Requirements 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total Revenues 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Operating Expenses:
Cost of Purchased Power 49.04% 44.58% 48.53% 48.53% 48.53% 48.53% 48.53% 48.53%
Administrative and General Expenses
Operating and Maintenance 22.57% 21.95% 21.76% 21.76% 21.76% 21.76% 21.76% 21.76%
Depreciation and amortization 6.65% 5.85% 5.71% 5.57% 5.43% 5.30% 5.17% 5.42%
Administrative and General 12.64% 11.11% 11.49% 11.49% 11.49% 11.49% 11.49% 11.49%
Taxes, other than income taxes 1.45% 1.23% 1.34% 1.34% 1.34% 1.34% 1.34% 1.34%
Total Operating Expenses 92.36% 84.73% 88.84% 88.70% 88.56% 88.43% 88.30% 88.55%
Earnings From Operations 7.64% 15.27% 11.16% 11.30% 11.44% 11.57% 11.70% 11.45%
Interest (Surplus Cash)/Add. Loans 0.00% 0.00% 0.05% 0.20% 0.26% 0.15% 0.00% 0.13%
Interest expense (net) 7.23% 5.71% 4.39% 4.23% 4.01% 3.64% 3.24% 3.87%
Interest and Other Income -0.16% -0.07% -0.18% -0.18% -0.18% -0.18% -0.18% -0.18%
Loss (Gain) on Sale of Assets 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Other Income (Expense) -0.08% -0.07% -0.06% -0.06% -0.06% -0.06% -0.05% -0.06%
Earnings Before Taxes 0.66% 9.70% 7.02% 7.32% 7.68% 8.18% 8.70% 7.82%
Extraordinary Items 1.10% 0.82% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Income Taxes 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Net Income 1.75% 10.52% 7.02% 7.32% 7.68% 8.18% 8.70% 7.82%
Preferred Stock Dividends 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Return of Patronage Capital 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Exhibit 2
Page 3 of 5
Flowell Electric Association, Inc.
Forecast Financial Ratios
Historical Historical Forecast Forecast Forecast Forecast Forecast Forecast
Ratio Group And Name Averages 2009 2010 2011 2012 2013 2014 Average
Short-term Liquidity Ratios:
Current 0.74 0.66 0.64 0.64 0.64 0.65 0.66 0.65
Quick 0.38 0.27 0.31 0.32 0.33 0.34 0.35 0.33
Days Revenues Receivable 28.74 24.53 23.24 22.72 22.72 22.72 22.72 22.82
Long-term Solvency Ratios:
Net Worth/Total Debt 0.84 0.68 0.72 0.78 0.87 0.99 1.12 0.90
Net Worth/Non Current Debt 2.81 0.96 1.06 1.14 1.31 1.52 1.77 1.36
Net Worth/Fixed Assets 0.57 0.45 0.48 0.49 0.53 0.56 0.60 0.53
Times Interest Earned 2.73 2.70 2.60 2.73 2.92 3.25 3.69 3.04
Profitability Ratios:
Return On Total Assets 7.97% 8.97% 6.31% 6.25% 6.33% 6.57% 6.82% 6.46%
Return On Total Capital 10.79% 10.96% 7.67% 7.76% 7.87% 8.05% 8.23% 7.92%
Return On Patrons Capital 12.95% 15.81% 9.76% 9.69% 9.69% 9.83% 9.95% 9.78%
Asset-utilization Ratios:
Sales/Cash 17.44 56.85 24.00 24.00 24.00 24.00 23.75 23.95
Sales/Accounts Receivable 12.27 16.17 16.09 16.46 16.46 16.46 16.46 16.38
Sales/Working Capital -8.09 -7.92 -9.09 -8.58 -8.88 -9.34 -9.85 -9.15
Sales/Fixed Assets 1.00 0.64 0.65 0.64 0.64 0.66 0.66 0.65
Sales/Total Assets 0.67 0.55 0.56 0.55 0.55 0.56 0.57 0.56
Loan Covenants:
Debt Coverage Ratio > 1.35 2.61 2.79 2.82 2.99 3.11 3.35 3.70 3.19
Capital Structure (Regulatory):
Long-Term Debt 56.22% 51.70% 52.77% 50.80% 47.55% 44.03% 40.57% 47.14%
Common Equity 43.78% 48.30% 47.23% 49.20% 52.45% 55.97% 59.43% 52.86%
Capital Structure:
Short-Term Debt 9.13% 8.70% 8.28% 7.82% 7.59% 7.30% 6.97% 7.59%
Long-Term Debt 50.55% 46.62% 44.49% 42.98% 39.95% 36.72% 33.60% 39.55%
Common Equity 40.31% 44.68% 47.23% 49.20% 52.45% 55.97% 59.43% 52.86%