4383-xls-eng

9
Exhibit 1 2008 2009 Veterinary care spending ($B) 11.1 12.04 Annual growth 8.5% Source: American Pet Products Association Note: Veterinary care spending excludes over-the-counter medicines

Upload: sandrapgg

Post on 10-Nov-2015

213 views

Category:

Documents


1 download

DESCRIPTION

case excel

TRANSCRIPT

Exhibit 1 - Market DataExhibit 12008200920102011FVeterinary care spending ($B)11.112.0413.0114.11Annual growth8.5%8.1%8.5%Source: American Pet Products AssociationNote: Veterinary care spending excludes over-the-counter medicines

Exhibit 2 - ISExhibit 2Year ended December 31st (in thousands)200920082007

Revenues66,24856,04448,200Cost of revenues26,10922,00818,362Gross profit40,13934,03629,838

Operating ExpensesResearch & development6,0204,4644,176Sales & marketing17,78416,27214,256General & administrative4,9524,2483,960Total Operating Expenses28,75624,98422,392

Income from Operations11,3839,0527,446Interest and other income (expense), net(576)(432)(360)Pre-Tax Income10,8078,6207,086Income tax provision4,1913,3622,764Net Income6,6165,2584,322

Exhibit 3 - BSExhibit 3At December 31 (in thousands)20092008ASSETSCurrent AssetsCash and cash equivalents20,18716,842Short-term investments12,04712,218Accounts receivable12,93110,724Inventories9,2108,191Prepaid expenses and other current assets1,6281,132Total Current Assets56,00349,107

Long-Term AssetsPlant, property, and equipment, net9,1177,014Intangible assets, net1,9542,082Other assets559408Total Long-Term Assets11,6309,504

Total Assets67,63358,611LIABILITIES AND STOCKHOLDERS EQUITYCurrent LiabilitiesAccounts payable5,3924,525Accrued payroll and other liabilities2,8382,534Warranty reserve559543Total Current Liabilities8,7897,602

Long-Term LiabilitiesWarranty reserve1,3541,192Notes payable, less current portion5,5824,525Total Long-Term Liabilities6,9365,717

Stockholders' EquityCommon stock34,88434,884Retained earnings17,02410,408Total Stockholders' Equity51,90845,292

Total Liabilities and Stockholders' Equity67,63358,611

Exhibit 4 - ProposalExhibit 4GenieTechIn-House Labor - CartridgeSupervision236,500Production coordinator, 3 foremen242,100Production supervisor, 2 foremenDirect / Indirect Labor260,70012 machine operators @ ~$22K230,5006 machine operators @ ~$30K, plus profit-sharing bonus in line with current compensation structureBenefits and Taxes646,400614,400Total Labor1,143,6001,087,000

Raw Material (RM) Costs - CartridgeCost per lb, delivered$2.45Avg cost, Q1/Q2 2010 for specialty PMMA$2.45Avg cost, Q1/Q2 2010 for specialty PMMAYield (RM lbs per 1000 units)320Current RM requirement3103% reduction in RM waste with new machinesTotal cartridges (units)4,687,5002010 EOY estimated installed base x 2.5 cartridges/day4,687,5002010 EOY estimated installed base x 2.5 cartridges/dayLbs for annual demand1,500,0001,453,125RM Costs - Cartridges3,675,0003,560,156

Labor and Raw Materials - ReagentsAverage cost per cartridge$1.15$1.15Total cartridges (units)4,687,5004,687,500Labor and RM Costs - Reagents5,390,6255,390,625

OverheadRent / Floor Space255,000Current rental of 25K sq ft, incl office space147,900Allocation of 10K sq ft at Parsippany plantDepreciation315,4008 presses @ $275K + $320K aux equip, 8-year straight-line depreciation378,8004 presses @ $490K + $645K aux equip + $425K installation, 8-year straight-line depreciation Utilities482,400Incl 8 presses @ 50 kw x 24 hrs x 5 days x 50 weeks x ~$0.20/kwh411,100Incl 4 presses @ 75 kw x 24 hrs x 5 days x 50 weeks x ~$0.23/kwhInsurance (Equipment)54,90032,800Repairs & Maintenance213,20057,100Maintenance, Repair, & Ops Supplies108,90045,700Variable Overhead329,700Controller, billing, sales order clerk, and warehouse manager0.0No incremental cost; all functions performed by current Parsippany staffTotal Overhead1,759,5001,073,400

Contingency0.0No allowance required for ongoing operation90,000Includes allowance for consulting engineer @ $7.5K/month

Comparison of Cost per UnitLabor1,143,6001,087,000Raw Materials3,675,0003,560,156Reagents Costs5,390,6255,390,625Overhead1,759,5001,073,400Contingency0.090,000Annual Operating Cost11,968,72511,201,181

Annual Production of Cartridges4,687,5004,687,500

Cost per Unit$2.553$2.390

Current Cost per Unit, Delivered$2.960$2.960Cost per Unit, Bergerac$2.703Includes delivery costs (transportation, fuel, handling) of $0.15/unit$2.390No delivery requiredSavings per Unit$0.257$0.570Annual Savings @ Current Production1,204,6882,673,819

Capital RequirementsAcquisition Price5,750,000Based on 5x EBITDA multiple0.0Machinery & Equipment0.03,182,000Molding Machines Cost0.0375,000Estimated cost for new Hitachi molding machineMolds0.0115,000Cartridge cover and base molds for each molding machineNumber of Molding Machines0.04Installation Cost0.0425,000Quoted installation costAuxiliary Equipment0.0645,000Contingency0.0152,000Allowance of 5% of total capital investment in equipmentBuilding & Building Equipment0.0425,000Total Capital Requirements5,750,0003,607,000

Savings per Unit$0.257$0.570Break-Even Volume22,373,5416,323,470Annual Production Volume4,687,5004,687,500Payback Period, Years4.81.3

Sheet1