Strategic Analysis of LRH Enterprises, Inc. Group 1Final ProjectFall 2009

OverviewManufacturer of a wide variety of cutting toolsCompetes in the North American Woodworking-Tool-Manufacturing IndustryServes small- to medium-size cabinet shops Known for quality, speedy delivery, and knowledgeable sales representativesPresident is Curt HubertHeadquartered in Chatsworth, CaliforniaRevenues in 2008 were $1.54MFor the first eight months of 2009, revenues are down by 40%, but NIAT up by 32%

HistoryHubert Saw began operations in the 1950sIt was dissolved in 1975 and LRH Enterprises was begunEstablished by Leo Remy HubertSwitched from servicing to manufacturingSwitched focus from saws to cutters and bitsLRH received an industry award for leadership in ergonomics and safetyThe company began to downsize in 2008 to cope with economic downturnCurt Hubert took over the presidency of the company from his father in August 2009

Company StructureThree years agoEmployed 40 peopleRan two shifts at its manufacturing plantTodayTen full-time and 2 part-time, on-call staffPresidentBookkeeper/CFOOne production managerFive production personnel (+ two additional part-timers on call)One drafting engineer/machine programmerThree salesmenOne day shift

Company Structure (cont.)President has full control of day-to-day operationsThree members of the Board of Directors vote on major decisionsThe company has four major stakeholdersTwo are members of the Board of Directors EmployeesMost have been with company over 20 yearsThree employees are family members, including the bookkeeper

Recent ChangesReduction of in-stock inventory parts by 1/3Animosity between sales and marketing being addressedManagers creating the problems removedSales department shifting focusNew emphasis on increasing product awareness and demandPrior emphasis was on customer service and order-takingCulture becoming more corporate

ProductsCatalog of standard productsNiche router bits used inYacht constructionMusical instrumentsCustom, made-to-order cutters and bits100% American madeOpen-style cuttersHigh qualityTechnology used in productionAutomatic CNC equipmentCAD/CAM design, scanner, and template systemElectronic spin-balancing for vibration-free and chatter-free performance

Product LinesMagic MolderEnables use of table saw to create moldingsOver 70 profile plug sets

Magic ShaperStackable shaper headsAllows the Magic Molder Plugs to be used on a shaper

CO-ST CuttersTwo-wing cutters for light-duty shapers with or spindles5 fluting cutters and 2 inlay rosette bitsKing CuttersStandard, high-quality, shaper cuttersOffer over 1,000 standard profiles

Router Shaper BitsMore than 90 anti-kickback router bits for making cabinet doors

Insert Tip ToolingInsert heads and tips Over 150 products

SalesGenerationDistributors LRH provides educationTradeshows limited benefit, rarely usedWoodworking shows - limitedCustomer referralsTypeDistributor NetworkApprox. 1,500 distributors and retailers in U.S. and CanadaAbout 70% of salesDirect SalesPrimarily from rural areasAbout 30% of sales

North American Woodworking-Tool-Manufacturing IndustryClassified as part of the hand-and-edge-tool-manufacturing industryIn 2002, comprised 1,178 establishmentsIn 2002, totaled $6.03B in shipmentsBetween 1997 and 2002, establishments decreased 9%Highly dependent on other industries, such as construction and furniture salesEconomic downturn causing a major shakeoutLimited technological innovationNumerous manufacturing regulationsThe degree of concentration is moderate but increasingThis industry is in the shakeout stage of the life-cycle

Industry Driving ForcesDemand for quick turn-around by customersPoor economy causing fluctuations in demandCost of carrying too much inventoryDivergent responses within industryIncreasing efforts to reduce costsRising cost of metals and energyCustomers highly price sensitiveIncreasing use of technology for process improvementsDemand for increased quality, speed, and durability

Porters Five-Forces Model

Intensity of RivalryHigh: companies fighting to survive

POTENTIAL NEW ENTRANTSAnyone with capitaland manufacturing experience

Bargaining Power Suppliers: HighDistributors: HighEnd-Users: High

SUPPLIERSEarle M JorgensonTigra-USACeratizit

Threat of Substitutes Low: no alternative to woodworking tools

Barriers to EntryMedium: Those with enough capital can enter the industry

SUBSTITUTESItems prefabricated by large companies or made from other materials

RIVALSLRH EnterprisesAmanaFreudFreeborn

BUYERSAny company or person in need of woodworking cutters and bits

Industry Attractiveness

FactorsWeightRatingProductMarket Size300.7 21.0Sales Growth Rate200.24.0Profitability200.510.0Intensity of Competition100.2 2.0Barriers to Entry100.44.0Regulation100.44.045.0

Competitive Strength

FactorsWeightRatingProductSpecialization350.931.5 Management200.48.0 Quality200.918.0 Reputation 150.812.0 Distributor Network100.55.0 74.5

G.E. MatrixIndustry AttractivenessCompetitive StrengthHighHighMediumLowAvg.WeakInvestDivest

LRH has three main competitorsFreeborn ToolAmana ToolFreud ToolAll produce woodworking cutting toolsCompete on price, quality, and speed of deliveryAll serve North American woodworking industryFreud also serves Europe, Russia, and ChinaCompetitive Analysis

Freeborn Tool Founded in 1976 as a saw-sharpening shopHeadquartered in Spokane, WASmall private company Approximately 55 employeesManufactures European style spindle cuttersProduced domestically and abroadProducts sold through a dealer network; no direct salesCompetitive Analysis

Amana Tool Founded in 1972 as a router bit manufacturerHeadquartered in Farmingdale, New YorkFulfillment center in El Cajon, CASmall private companyApproximately 70 employeesEstimated annual revenues of $7.2MManufactures router bits, CNC bits, European style shaper cutters saw blades, boring bits, and planar knivesProduced abroadProducts sold through a distributor network and online dealers; no direct salesCompetitive Analysis

Freud Tools (Freud America, Inc.)Founded in 1960s as a cutting tool manufacturerHeadquartered in Milan, ItalyManufacturing facilities in Italy and SpainSubsidiaries in Britain, Poland, Russia, China, Canada, and U.S.Large company Over 1000 employeesAcquired by Robert Bosch GmbH in 20082007 revenues of 100 million euros2007 revenues of Bosch Power Tool Division of 3.1 billion eurosManufactures router bits, saw blades, European style shaper cutters, drill bits, and accessories; also power tools routers, saws, jointers, and planersVast distributor network (B&M and online); no direct sales

Competitive Analysis

Strategic Group MapOpenLowCutter StyleQualityEuropeanHigh

Market AnalysisTarget market comprises any individual or company requiring high-quality woodworking cutters and bits, in North AmericaServed market is small- to medium-size businesses that produce custom cabinets, interior & exterior entry doors, andfurniture in North America Distribution channelsDistributors Catalog salesInternet salesSales representativesCustomers expect higher speeds and longer lifetimes from their toolsCustomers are extremely sensitive to price and speed of delivery

Environmental TrendsIncreasing demand for quality positiveMore companies using Computer Numerically Controlled (CNC) machines positiveMore companies outsourcing negativeEconomic downturn getting worse negativeDecline in construction industryDecline in furniture salesDecline in customization

Revenues ($M)

REVENUE

2.705113

2.719746

2.517597

2.211602

1.542653

Ann. Rev. Grow.

0.0054093859

-0.0743264261

-0.1215424867

-0.3024725968

NIAT

97.648

38.745

-398.996

-249.46

-209.754

Cash

11.645

-42.954

-19.761

-12.376

-19.592

Current Ratio

4.3880320091

4.0158770169

3.6443199748

2.3994780224

1.7590511995

D A

0.3420277412

0.3626518592

0.3395514545

0.8720349256

1.2247621964

Net Profit Margin

0.0360975678

0.0142458156

-0.1584828708

-0.1127960637

-0.1359696575

Altman

5.1571585622

4.890628592

3.9593952003

3.5466655636

2.2677250676

Chart

20042005200620072008

Revenues2,705,1132,719,7462,517,5972,211,6021,542,653

33322

1%-7%-12%-30%

9764838745-398996-249460-209754

$98$39$(399)$(249)$(210)

$11,645$(42,954)$(19,761)$(12,376)$(19,592)

$12$(43)$(20)$(12)$(20)

Current Ratio4.44.03.62.41.8

D/A0.30.40.30.91.2

Net profit Margin0.00.0-0.2-0.1-0.1

Altman5.164.893.963.552.27

START

tw

Financial Analysis Module - For Use With 5 Years Data

TABLE OF CONTENTS

Income Statements Input SheetActivity Ratios

Balance Sheets Input SheetLeverage Ratios

Year-to-Year Change Income StatementProfitability Ratios

Common Size Income StatementsAltman's Z-Score Analysis

Liquidity RatiosFinancial Analysis Summary

tw

TABLE OF CONTENTS

Print ALL Financial Analysis Worksheets

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

IS Input

LRH Enterprises, Inc.

Financial Analysis - Income Statement Data

Enter Name of this Company HERE:

LRH Enterprises, Inc.

Input the following information from the Company's Income Statements. It is important to input data carefully. Confirm

subtotals and Net Income with Company's Income Statements. Any line on the Income Statement can and should be

overwritten to match the Company's Income Statement EXCEPT the headings that are indicated in BOLD type (do not alter

bold headings as these are used to calculate various ratios). Enter whole numbers without commas. Indicate "In Millions",

"In Thousands," Etc.

Special Note: Charts within the Financial Analysis module may be copied to other applications for presentation purposes. Use the

Paste-Special-Picture command to paste charts as fixed graphic objects. They will not be linked to the original data, so if changes

are made, make sure to recopy/paste the charts to your presentation.

Prior Period4Prior Period3Prior Period2Prior Period1Most Recent Period

Overwrite the title cells with actual years of analysis

In Thousands20042005200620072008

Service Sales$162,521$156,245$129,161$108,133$87,032

Manufactured2,638,8772,628,9922,461,9522,177,5931,514,736

Merchandise Others10,6252,8462,1461,227102

Allowances, Credit, Restocking(106,176)(74,135)(78,232)(78,127)(60,755)-0.0401092996

Misc. Refunds(734)5,7982,5702,7761,538

Total Revenues or Sales2,705,1132,719,7462,517,5972,211,6021,542,653

Cost of Goods Sold1,478,2091,457,3101,544,6481,320,5041,036,753

Operating Income1,226,9041,262,436972,949891,098505,900

Selling Expenses472,119517,858508,924437,204274,132

General & Administrative566,397584,467744,278611,277362,673

Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)188,388160,111(280,253)(157,383)(130,905)

Depreciation and Amortization

Earnings Before Interest & Taxes (EBIT)188,388160,111(280,253)(157,383)(130,905)

Net Interest Expense39,40455,04459,85954,41945,789

Other Expense (Income)

Net Income Before Taxes (NIBT)148,984105,067(340,112)(211,802)(176,694)

Income Tax Expense51,33666,32258,88437,65833,060

Net Income After Taxes (NIAT)$97,648$38,745$(398,996)$(249,460)$(209,754)

Number of Shares Outstanding

Preferred Stock Dividends

Net Earnings per Share (EPS)0.00.00.00.00.0

DiscussionDiscussion

IS Input

0

0

0

0

0

Net Income After Taxes

BS Input

LRH Enterprises, Inc.

Financial Analysis - Balance Sheet Data

Input the following information from the Company's Balance Sheets. It is important to input data carefully. Confirm subtotals and

totals with Company's Financial Statements. Any line on the Balance Sheets can and should be overwritten to match the Company's

Balance Sheet EXCEPT the headings that are indicated in BOLD type (do not alter bold headings as these are used to calculate

various ratios). Enter whole numbers without commas.

Special Note: Charts within the Financial Analysis module may be copied to other applications for presentation purposes. Use the

Paste-Special-Picture command to paste charts as fixed graphic objects. They will not be linked to the original data, so if changes

are made, make sure to recopy/paste the charts to your presentation.

Prior Period4Prior Period3Prior Period2Prior Period1Most Recent Period

Overwrite the title cells with actual years, quarters, etc...

In Thousands20042005200620072008

Assets

Cash & Cash Equivalents$11,645$(42,954)$(19,761)$(12,376)$(19,592)

Accounts Receivable272,183264,889188,403206,295142,874

Inventory297,010378,319291,593296,070182,302

Other Variable Assets656,165668,545692,588174,266172,844

Other Current Assets2,2655,7482,0624,13410,057

Total Current Assets1,239,2681,274,5471,154,885668,389488,485

Land and Buildings

Furniture and Equipment1,085,8971,107,3331,109,4361,108,8061,113,384

Other Fixed Assets(1,041,658)(1,041,658)(1,041,658)(1,085,897)(1,085,897)

Total Fixed Assets44,23965,67567,77822,90927,487

Total Assets1,283,5071,340,2221,222,663691,298515,972

Liabilities and Stockholder's Equity

Liabilities

Accounts Payable233,944276,862295,267255,150279,512

Accrued Liabilities

Current Maturities of LT Debt

Suspense1,216(6,745)21,63323,407(9,628)

Other Current Liabilities47,26047,2600.0(1)7,814

Total Current Liabilities282,420317,377316,900278,556277,698

LT Debt, net of current portion137,346151,139117,341205,328153,729

Total Tax Liabilities19,22917,518(19,084)118,952200,516

Total Liabilities438,995486,034415,157602,836631,943

Stockholder's Equity

Common Stock32,95832,95832,95832,95832,958

Retained Earnings609,597670,401700,845164,928(97,654)

Additional Paid-in Capital383,932145,611145,611

Other Equity93,26233,580(403,840)(255,035)(196,885)

Total Stockholder's Equity735,817736,939713,89588,462(115,970)

Total Liabilities & Stockholder's Equity$1,174,812$1,222,973$1,129,052$691,298$515,973

$956,848$957,170$837,985$389,833$210,787

Discussion

Check Assets = Liabilities + Equity -->OUT OF BALANCEOUT OF BALANCEOUT OF BALANCEOKOUT OF BALANCE

(108,695)(117,249)(93,611)0.01

Print

Go To Start

Print

Go To Start

YR TO YR CHG IS

LRH Enterprises, Inc.

Financial Analysis

Income Statement - Year-to-Year Percentage Changes

Percentage Increase/(Decrease) 2004 to 2005Percentage Increase/(Decrease) 2005 to 2006Percentage Increase/(Decrease) 2006 to 2007Percentage Increase/(Decrease) 2007 to 2008Five-Yr Average Percentage Increase/(Decrease) 2004-2008Increase/(Decrease) 2005 to 2004Increase/(Decrease) 2005 to 2006Increase/(Decrease) 2006 to 2007Increase/(Decrease) 2007 to 2008

Service Sales(3.86%)(17.33%)(16.28%)(19.51%)(14.25%)(6,276.00)(27,084.00)(21,028.00)(21,101.00)

Manufactured(0.37%)(6.35%)(11.55%)(30.44%)(12.18%)(9,885.00)(167,040.00)(284,359.00)(662,857.00)

Merchandise Others(73.21%)(24.60%)(42.82%)(91.69%)(58.08%)(7,779.00)(700.00)(919.00)(1,125.00)

Misc. Refunds889.92%(55.67%)8.02%(44.60%)199.42%6,532.00(3,228.00)206.00(1,238.00)

Total Revenues or Sales0.54%(7.43%)(12.15%)(30.25%)(12.32%)14,633.00(202,149.00)(305,995.00)(668,949.00)

Cost of Goods Sold(1.41%)5.99%(14.51%)(21.49%)(7.85%)(20,899.00)87,338.00(224,144.00)(283,751.00)

Operating Income2.90%(22.93%)(8.41%)(43.23%)(17.92%)35,532.00(289,487.00)(81,851.00)(385,198.00)

Selling Expenses9.69%(1.73%)(14.09%)(37.30%)(10.86%)45,739.00(8,934.00)(71,720.00)(163,072.00)

General & Administrative3.19%27.34%(17.87%)(40.67%)(7.00%)18,070.00159,811.00(133,001.00)(248,604.00)

Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)(15.01%)(275.04%)43.84%16.82%(57.35%)(28,277.00)(440,364.00)122,870.0026,478.00

Depreciation and Amortization0.00%0.00%0.00%0.00%0.00%0.00.00.00.0

Earnings Before Interest & Taxes (EBIT)(15.01%)(275.04%)43.84%16.82%(57.35%)(28,277.00)(440,364.00)122,870.0026,478.00

Net Interest Expense39.69%8.75%(9.09%)(15.86%)5.87%15,640.004,815.00(5,440.00)(8,630.00)

Other Expense (Income)0.00%0.00%0.00%0.00%0.00%0.00.00.00.0

Net Income Before Taxes (NIBT)(29.48%)(423.71%)37.73%16.58%(99.72%)(43,917.00)(445,179.00)128,310.0035,108.00

Income Tax Expense29.19%(11.21%)(36.05%)(12.21%)(7.57%)14,986.00(7,438.00)(21,226.00)(4,598.00)

Net Income After Taxes (NIAT)(60.32%)(1129.80%)37.48%15.92%(284.18%)(58,903.00)(437,741.00)149,536.0039,706.00

Discussion

Print

Go To Start

COMMON SIZE IS

LRH Enterprises, Inc.

Financial Analysis

Common Size Income Statements

Line Items Reflected as a Percentage of Total Revenues or Sales

20042005200620072008

Service Sales6.01%5.74%5.13%4.89%5.64%

Manufactured97.55%96.66%97.79%98.46%98.19%

Merchandise Others0.39%0.10%0.09%0.06%0.01%

Misc. Refunds-0.03%0.21%0.10%0.13%0.10%

Total Revenues or Sales100.00%100.00%100.00%100.00%100.00%

Cost of Goods Sold54.65%53.58%61.35%59.71%67.21%

Operating Income45.35%46.42%38.65%40.29%32.79%

Selling Expenses17.45%19.04%20.21%19.77%17.77%

General & Administrative20.94%21.49%29.56%27.64%23.51%

Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)6.96%5.89%-11.13%-7.12%-8.49%

Depreciation and Amortization0.00%0.00%0.00%0.00%0.00%

Earnings Before Interest & Taxes (EBIT)6.96%5.89%-11.13%-7.12%-8.49%

Net Interest Expense1.46%2.02%2.38%2.46%2.97%

Other Expense (Income)0.00%0.00%0.00%0.00%0.00%

Net Income Before Taxes (NIBT)5.51%3.86%-13.51%-9.58%-11.45%

Income Tax Expense1.90%2.44%2.34%1.70%2.14%

Net Income After Taxes (NIAT)3.61%1.42%-15.85%-11.28%-13.60%

Discussion

Print

Go To Start

Liquidity

LRH Enterprises, Inc.

Financial Analysis

Liquidity Ratios & Analysis

Current Ratio20042005200620072008

Total Current Assets1,239,2681,274,5471,154,885668,389488,485

Total Current Liabilities282,420317,377316,900278,556277,698

=Current Ratio4.394.023.642.401.76

Discussion

Quick Ratio20042005200620072008

Total Current Assets - Inventories942,258896,228863,292372,319306,183

Total Current Liabilities282,420317,377316,900278,556277,698

=Quick Ratio3.342.822.721.341.10

Discussion

Inventory to Net Working Capital20042005200620072008

Inventory297,010378,319291,593296,070182,302

Current Assets - Current Liabilities956,848957,170837,985389,833210,787

=Inventory to Net Working Capital0.310.400.350.760.86

Discussion

Indicates the extent to which the claims of short-term creditors are covered by assets that could be converted into cash during the period corresponding to the maturity of the liabilities.

Measures the ability of the firm to pay off its short-term obligations without having to sell off its inventories.

Measures the extent to which the firm's working capital is tied up in inventory.

Liquidity

0

0

0

0

0

Activity

0

0

0

0

0

Leverage

0

0

0

0

0

Profitability

LRH Enterprises, Inc.

Financial Analysis

Activity Ratios & Analysis

Inventory Turnover20042005200620072008

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

Inventory297,010378,319291,593296,070182,302

=Inventory Turnover9.117.198.637.478.46

Discussion

Total-Asset Turnover20042005200620072008

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

Total Assets1,283,5071,340,2221,222,663691,298515,972

=Total Asset Turnover2.112.032.063.202.99

Discussion

Average Collection Period20042005200620072008

A/R272,183264,889188,403206,295142,874

Average Daily Sales7,411.37,451.46,897.56,059.24,226.4

=Average Collection Period36.7335.5527.3134.0533.80

Discussion

Print

Go To Start

When compared to industry averages, this indicates whether a company has excessive or perhaps inadequate finished-goods inventory.

Measures how well the company's assets are utilized. If lower than the industry average, this would indicate the firm is not generating sufficient sales given its investment in assets.

Indicates the average number of days the firm must wait for payment after making the sale.

Profitability

0

0

0

0

0

Altman's Z

0

0

0

0

0

Summary

0

0

0

0

0

LRH Enterprises, Inc.

Financial Analysis

Leverage Ratios & Analysis

Debt-to-Assets Ratio20042005200620072008

Total Debt438,995486,034415,157602,836631,943

Total Assets1,283,5071,340,2221,222,663691,298515,972

=Debt-to-Assets Ratio0.360.340.871.22

Discussion

Debt-to-Equity Ratio20042005200620072008

Total Debt438,995486,034415,157602,836631,943

Total Equity735,817736,939713,89588,462(115,970)

=Debt-to-Equity Ratio0.600.660.586.81(5.45)

Discussion

Times Interest Earned20042005200620072008

EBIT188,388160,111(280,253)(157,383)(130,905)

Interest Expense39,40455,04459,85954,41945,789

=Times Interest Earned4.782.91(4.68)(2.89)(2.86)

Discussion

Print

Go To Start

Indicates the extent to which borrowed funds have been used to finance the firm's operations.

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

LRH Enterprises, Inc.

Financial Analysis

Profitability Ratios & Analysis

Gross Profit Margin20042005200620072008

Sales - COGS1,226,9041,262,436972,949891,098505,900

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

=Gross Profit Margin0.450.460.390.400.33

Discussion

Net Profit Margin20042005200620072008

NIAT97,64838,745(398,996)(249,460)(209,754)

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

=Net Profit Margin0.040.01(0.16)(0.11)(0.14)

Discussion

Return on Sales20042005200620072008

EBIT188,388160,111(280,253)(157,383)(130,905)

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

=Return on Sales0.070.06(0.11)(0.07)(0.08)

Discussion

Return on Equity20042005200620072008

NIAT97,64838,745(398,996)(249,460)(209,754)

Stockholder's Equity735,817736,939713,89588,462(115,970)

=Return on Equity0.130.05(0.56)(2.82)1.81

Discussion

Return on Assets20042005200620072008

NIAT97,64838,745(398,996)(249,460)(209,754)

Total Assets1,283,5071,340,2221,222,663691,298515,972

=Return on Assets0.080.03(0.33)(0.36)(0.41)

Discussion

Measures the extent to which earnings can decline without the firm being unable to meet its annual interest costs.

Indicates the extent to which borrowed funds have been used to finance the firm's operations.

Print

Go To Start

Indicates the total margin available to cover operating expenses and yield a profit.

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

LRH Enterprises, Inc.

Financial Analysis

The Ratios:Results:

20042005200620072008

Net Working Capital / Total Assets0.750.710.690.560.41

Retained Earnings / Total Assets0.470.500.570.24(0.19)

EBIT / Total Assets0.150.12(0.23)(0.23)(0.25)

Market Value of Equity / Book Value of Debt1.681.521.720.15(0.18)

Sales / Total Assets2.112.032.063.202.99

Net Worth / Total Debt1.681.521.720.15(0.18)

Equity and Total Debt, respectively. In addition, it assumes that Total Equity equals Net Worth, so that, in fact, the

ratios X4 and X4a are computed to be identical. The resulting errors from these simplifying assumptions are negligible.

The Formulae and Results:

For manufacturers:

5.164.893.963.552.27

SafeSafeSafeSafeGray

For non-manufacturers:

9.148.676.593.070.14

SafeSafeSafeSafeBankrupt

What does it mean?

CriteriaCriteriaSafe RegionGray RegionBankrupt Region

Z (for Manufacturers)Z (for manufacturers)> 2.991.81 -- 2.99< 1.81

> 2.591.11 -- 2.59

NIAT ($K)

REVENUE

2.705113

2.719746

2.517597

2.211602

1.542653

Ann. Rev. Grow.

0.0054093859

-0.0743264261

-0.1215424867

-0.3024725968

NIAT

97.648

38.745

-398.996

-249.46

-209.754

Cash

11.645

-42.954

-19.761

-12.376

-19.592

Current Ratio

4.3880320091

4.0158770169

3.6443199748

2.3994780224

1.7590511995

D A

0.3420277412

0.3626518592

0.3395514545

0.8720349256

1.2247621964

Net Profit Margin

0.0360975678

0.0142458156

-0.1584828708

-0.1127960637

-0.1359696575

Altman

5.1571585622

4.890628592

3.9593952003

3.5466655636

2.2677250676

Chart

20042005200620072008

Revenues2,705,1132,719,7462,517,5972,211,6021,542,653

33322

1%-7%-12%-30%

9764838745-398996-249460-209754

$98$39$(399)$(249)$(210)

$11,645$(42,954)$(19,761)$(12,376)$(19,592)

$12$(43)$(20)$(12)$(20)

Current Ratio4.44.03.62.41.8

D/A0.30.40.30.91.2

Net profit Margin0.00.0-0.2-0.1-0.1

Altman5.164.893.963.552.27

START

tw

Financial Analysis Module - For Use With 5 Years Data

TABLE OF CONTENTS

Income Statements Input SheetActivity Ratios

Balance Sheets Input SheetLeverage Ratios

Year-to-Year Change Income StatementProfitability Ratios

Common Size Income StatementsAltman's Z-Score Analysis

Liquidity RatiosFinancial Analysis Summary

tw

TABLE OF CONTENTS

Print ALL Financial Analysis Worksheets

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

IS Input

LRH Enterprises, Inc.

Financial Analysis - Income Statement Data

Enter Name of this Company HERE:

LRH Enterprises, Inc.

Input the following information from the Company's Income Statements. It is important to input data carefully. Confirm

subtotals and Net Income with Company's Income Statements. Any line on the Income Statement can and should be

overwritten to match the Company's Income Statement EXCEPT the headings that are indicated in BOLD type (do not alter

bold headings as these are used to calculate various ratios). Enter whole numbers without commas. Indicate "In Millions",

"In Thousands," Etc.

Special Note: Charts within the Financial Analysis module may be copied to other applications for presentation purposes. Use the

Paste-Special-Picture command to paste charts as fixed graphic objects. They will not be linked to the original data, so if changes

are made, make sure to recopy/paste the charts to your presentation.

Prior Period4Prior Period3Prior Period2Prior Period1Most Recent Period

Overwrite the title cells with actual years of analysis

In Thousands20042005200620072008

Service Sales$162,521$156,245$129,161$108,133$87,032

Manufactured2,638,8772,628,9922,461,9522,177,5931,514,736

Merchandise Others10,6252,8462,1461,227102

Allowances, Credit, Restocking(106,176)(74,135)(78,232)(78,127)(60,755)-0.0401092996

Misc. Refunds(734)5,7982,5702,7761,538

Total Revenues or Sales2,705,1132,719,7462,517,5972,211,6021,542,653

Cost of Goods Sold1,478,2091,457,3101,544,6481,320,5041,036,753

Operating Income1,226,9041,262,436972,949891,098505,900

Selling Expenses472,119517,858508,924437,204274,132

General & Administrative566,397584,467744,278611,277362,673

Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)188,388160,111(280,253)(157,383)(130,905)

Depreciation and Amortization

Earnings Before Interest & Taxes (EBIT)188,388160,111(280,253)(157,383)(130,905)

Net Interest Expense39,40455,04459,85954,41945,789

Other Expense (Income)

Net Income Before Taxes (NIBT)148,984105,067(340,112)(211,802)(176,694)

Income Tax Expense51,33666,32258,88437,65833,060

Net Income After Taxes (NIAT)$97,648$38,745$(398,996)$(249,460)$(209,754)

Number of Shares Outstanding

Preferred Stock Dividends

Net Earnings per Share (EPS)0.00.00.00.00.0

DiscussionDiscussion

IS Input

0

0

0

0

0

Net Income After Taxes

BS Input

LRH Enterprises, Inc.

Financial Analysis - Balance Sheet Data

Input the following information from the Company's Balance Sheets. It is important to input data carefully. Confirm subtotals and

totals with Company's Financial Statements. Any line on the Balance Sheets can and should be overwritten to match the Company's

Balance Sheet EXCEPT the headings that are indicated in BOLD type (do not alter bold headings as these are used to calculate

various ratios). Enter whole numbers without commas.

Special Note: Charts within the Financial Analysis module may be copied to other applications for presentation purposes. Use the

Paste-Special-Picture command to paste charts as fixed graphic objects. They will not be linked to the original data, so if changes

are made, make sure to recopy/paste the charts to your presentation.

Prior Period4Prior Period3Prior Period2Prior Period1Most Recent Period

Overwrite the title cells with actual years, quarters, etc...

In Thousands20042005200620072008

Assets

Cash & Cash Equivalents$11,645$(42,954)$(19,761)$(12,376)$(19,592)

Accounts Receivable272,183264,889188,403206,295142,874

Inventory297,010378,319291,593296,070182,302

Other Variable Assets656,165668,545692,588174,266172,844

Other Current Assets2,2655,7482,0624,13410,057

Total Current Assets1,239,2681,274,5471,154,885668,389488,485

Land and Buildings

Furniture and Equipment1,085,8971,107,3331,109,4361,108,8061,113,384

Other Fixed Assets(1,041,658)(1,041,658)(1,041,658)(1,085,897)(1,085,897)

Total Fixed Assets44,23965,67567,77822,90927,487

Total Assets1,283,5071,340,2221,222,663691,298515,972

Liabilities and Stockholder's Equity

Liabilities

Accounts Payable233,944276,862295,267255,150279,512

Accrued Liabilities

Current Maturities of LT Debt

Suspense1,216(6,745)21,63323,407(9,628)

Other Current Liabilities47,26047,2600.0(1)7,814

Total Current Liabilities282,420317,377316,900278,556277,698

LT Debt, net of current portion137,346151,139117,341205,328153,729

Total Tax Liabilities19,22917,518(19,084)118,952200,516

Total Liabilities438,995486,034415,157602,836631,943

Stockholder's Equity

Common Stock32,95832,95832,95832,95832,958

Retained Earnings609,597670,401700,845164,928(97,654)

Additional Paid-in Capital383,932145,611145,611

Other Equity93,26233,580(403,840)(255,035)(196,885)

Total Stockholder's Equity735,817736,939713,89588,462(115,970)

Total Liabilities & Stockholder's Equity$1,174,812$1,222,973$1,129,052$691,298$515,973

$956,848$957,170$837,985$389,833$210,787

Discussion

Check Assets = Liabilities + Equity -->OUT OF BALANCEOUT OF BALANCEOUT OF BALANCEOKOUT OF BALANCE

(108,695)(117,249)(93,611)0.01

Print

Go To Start

Print

Go To Start

YR TO YR CHG IS

LRH Enterprises, Inc.

Financial Analysis

Income Statement - Year-to-Year Percentage Changes

Percentage Increase/(Decrease) 2004 to 2005Percentage Increase/(Decrease) 2005 to 2006Percentage Increase/(Decrease) 2006 to 2007Percentage Increase/(Decrease) 2007 to 2008Five-Yr Average Percentage Increase/(Decrease) 2004-2008Increase/(Decrease) 2005 to 2004Increase/(Decrease) 2005 to 2006Increase/(Decrease) 2006 to 2007Increase/(Decrease) 2007 to 2008

Service Sales(3.86%)(17.33%)(16.28%)(19.51%)(14.25%)(6,276.00)(27,084.00)(21,028.00)(21,101.00)

Manufactured(0.37%)(6.35%)(11.55%)(30.44%)(12.18%)(9,885.00)(167,040.00)(284,359.00)(662,857.00)

Merchandise Others(73.21%)(24.60%)(42.82%)(91.69%)(58.08%)(7,779.00)(700.00)(919.00)(1,125.00)

Misc. Refunds889.92%(55.67%)8.02%(44.60%)199.42%6,532.00(3,228.00)206.00(1,238.00)

Total Revenues or Sales0.54%(7.43%)(12.15%)(30.25%)(12.32%)14,633.00(202,149.00)(305,995.00)(668,949.00)

Cost of Goods Sold(1.41%)5.99%(14.51%)(21.49%)(7.85%)(20,899.00)87,338.00(224,144.00)(283,751.00)

Operating Income2.90%(22.93%)(8.41%)(43.23%)(17.92%)35,532.00(289,487.00)(81,851.00)(385,198.00)

Selling Expenses9.69%(1.73%)(14.09%)(37.30%)(10.86%)45,739.00(8,934.00)(71,720.00)(163,072.00)

General & Administrative3.19%27.34%(17.87%)(40.67%)(7.00%)18,070.00159,811.00(133,001.00)(248,604.00)

Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)(15.01%)(275.04%)43.84%16.82%(57.35%)(28,277.00)(440,364.00)122,870.0026,478.00

Depreciation and Amortization0.00%0.00%0.00%0.00%0.00%0.00.00.00.0

Earnings Before Interest & Taxes (EBIT)(15.01%)(275.04%)43.84%16.82%(57.35%)(28,277.00)(440,364.00)122,870.0026,478.00

Net Interest Expense39.69%8.75%(9.09%)(15.86%)5.87%15,640.004,815.00(5,440.00)(8,630.00)

Other Expense (Income)0.00%0.00%0.00%0.00%0.00%0.00.00.00.0

Net Income Before Taxes (NIBT)(29.48%)(423.71%)37.73%16.58%(99.72%)(43,917.00)(445,179.00)128,310.0035,108.00

Income Tax Expense29.19%(11.21%)(36.05%)(12.21%)(7.57%)14,986.00(7,438.00)(21,226.00)(4,598.00)

Net Income After Taxes (NIAT)(60.32%)(1129.80%)37.48%15.92%(284.18%)(58,903.00)(437,741.00)149,536.0039,706.00

Discussion

Print

Go To Start

COMMON SIZE IS

LRH Enterprises, Inc.

Financial Analysis

Common Size Income Statements

Line Items Reflected as a Percentage of Total Revenues or Sales

20042005200620072008

Service Sales6.01%5.74%5.13%4.89%5.64%

Manufactured97.55%96.66%97.79%98.46%98.19%

Merchandise Others0.39%0.10%0.09%0.06%0.01%

Misc. Refunds-0.03%0.21%0.10%0.13%0.10%

Total Revenues or Sales100.00%100.00%100.00%100.00%100.00%

Cost of Goods Sold54.65%53.58%61.35%59.71%67.21%

Operating Income45.35%46.42%38.65%40.29%32.79%

Selling Expenses17.45%19.04%20.21%19.77%17.77%

General & Administrative20.94%21.49%29.56%27.64%23.51%

Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)6.96%5.89%-11.13%-7.12%-8.49%

Depreciation and Amortization0.00%0.00%0.00%0.00%0.00%

Earnings Before Interest & Taxes (EBIT)6.96%5.89%-11.13%-7.12%-8.49%

Net Interest Expense1.46%2.02%2.38%2.46%2.97%

Other Expense (Income)0.00%0.00%0.00%0.00%0.00%

Net Income Before Taxes (NIBT)5.51%3.86%-13.51%-9.58%-11.45%

Income Tax Expense1.90%2.44%2.34%1.70%2.14%

Net Income After Taxes (NIAT)3.61%1.42%-15.85%-11.28%-13.60%

Discussion

Print

Go To Start

Liquidity

LRH Enterprises, Inc.

Financial Analysis

Liquidity Ratios & Analysis

Current Ratio20042005200620072008

Total Current Assets1,239,2681,274,5471,154,885668,389488,485

Total Current Liabilities282,420317,377316,900278,556277,698

=Current Ratio4.394.023.642.401.76

Discussion

Quick Ratio20042005200620072008

Total Current Assets - Inventories942,258896,228863,292372,319306,183

Total Current Liabilities282,420317,377316,900278,556277,698

=Quick Ratio3.342.822.721.341.10

Discussion

Inventory to Net Working Capital20042005200620072008

Inventory297,010378,319291,593296,070182,302

Current Assets - Current Liabilities956,848957,170837,985389,833210,787

=Inventory to Net Working Capital0.310.400.350.760.86

Discussion

Indicates the extent to which the claims of short-term creditors are covered by assets that could be converted into cash during the period corresponding to the maturity of the liabilities.

Measures the ability of the firm to pay off its short-term obligations without having to sell off its inventories.

Measures the extent to which the firm's working capital is tied up in inventory.

Liquidity

0

0

0

0

0

Activity

0

0

0

0

0

Leverage

0

0

0

0

0

Profitability

LRH Enterprises, Inc.

Financial Analysis

Activity Ratios & Analysis

Inventory Turnover20042005200620072008

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

Inventory297,010378,319291,593296,070182,302

=Inventory Turnover9.117.198.637.478.46

Discussion

Total-Asset Turnover20042005200620072008

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

Total Assets1,283,5071,340,2221,222,663691,298515,972

=Total Asset Turnover2.112.032.063.202.99

Discussion

Average Collection Period20042005200620072008

A/R272,183264,889188,403206,295142,874

Average Daily Sales7,411.37,451.46,897.56,059.24,226.4

=Average Collection Period36.7335.5527.3134.0533.80

Discussion

Print

Go To Start

When compared to industry averages, this indicates whether a company has excessive or perhaps inadequate finished-goods inventory.

Measures how well the company's assets are utilized. If lower than the industry average, this would indicate the firm is not generating sufficient sales given its investment in assets.

Indicates the average number of days the firm must wait for payment after making the sale.

Profitability

0

0

0

0

0

Altman's Z

0

0

0

0

0

Summary

0

0

0

0

0

LRH Enterprises, Inc.

Financial Analysis

Leverage Ratios & Analysis

Debt-to-Assets Ratio20042005200620072008

Total Debt438,995486,034415,157602,836631,943

Total Assets1,283,5071,340,2221,222,663691,298515,972

=Debt-to-Assets Ratio0.360.340.871.22

Discussion

Debt-to-Equity Ratio20042005200620072008

Total Debt438,995486,034415,157602,836631,943

Total Equity735,817736,939713,89588,462(115,970)

=Debt-to-Equity Ratio0.600.660.586.81(5.45)

Discussion

Times Interest Earned20042005200620072008

EBIT188,388160,111(280,253)(157,383)(130,905)

Interest Expense39,40455,04459,85954,41945,789

=Times Interest Earned4.782.91(4.68)(2.89)(2.86)

Discussion

Print

Go To Start

Indicates the extent to which borrowed funds have been used to finance the firm's operations.

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

LRH Enterprises, Inc.

Financial Analysis

Profitability Ratios & Analysis

Gross Profit Margin20042005200620072008

Sales - COGS1,226,9041,262,436972,949891,098505,900

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

=Gross Profit Margin0.450.460.390.400.33

Discussion

Net Profit Margin20042005200620072008

NIAT97,64838,745(398,996)(249,460)(209,754)

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

=Net Profit Margin0.040.01(0.16)(0.11)(0.14)

Discussion

Return on Sales20042005200620072008

EBIT188,388160,111(280,253)(157,383)(130,905)

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

=Return on Sales0.070.06(0.11)(0.07)(0.08)

Discussion

Return on Equity20042005200620072008

NIAT97,64838,745(398,996)(249,460)(209,754)

Stockholder's Equity735,817736,939713,89588,462(115,970)

=Return on Equity0.130.05(0.56)(2.82)1.81

Discussion

Return on Assets20042005200620072008

NIAT97,64838,745(398,996)(249,460)(209,754)

Total Assets1,283,5071,340,2221,222,663691,298515,972

=Return on Assets0.080.03(0.33)(0.36)(0.41)

Discussion

Measures the extent to which earnings can decline without the firm being unable to meet its annual interest costs.

Indicates the extent to which borrowed funds have been used to finance the firm's operations.

Print

Go To Start

Indicates the total margin available to cover operating expenses and yield a profit.

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

LRH Enterprises, Inc.

Financial Analysis

The Ratios:Results:

20042005200620072008

Net Working Capital / Total Assets0.750.710.690.560.41

Retained Earnings / Total Assets0.470.500.570.24(0.19)

EBIT / Total Assets0.150.12(0.23)(0.23)(0.25)

Market Value of Equity / Book Value of Debt1.681.521.720.15(0.18)

Sales / Total Assets2.112.032.063.202.99

Net Worth / Total Debt1.681.521.720.15(0.18)

Equity and Total Debt, respectively. In addition, it assumes that Total Equity equals Net Worth, so that, in fact, the

ratios X4 and X4a are computed to be identical. The resulting errors from these simplifying assumptions are negligible.

The Formulae and Results:

For manufacturers:

5.164.893.963.552.27

SafeSafeSafeSafeGray

For non-manufacturers:

9.148.676.593.070.14

SafeSafeSafeSafeBankrupt

What does it mean?

CriteriaCriteriaSafe RegionGray RegionBankrupt Region

Z (for Manufacturers)Z (for manufacturers)> 2.991.81 -- 2.99< 1.81

> 2.591.11 -- 2.59

Current Ratio

REVENUE

2.705113

2.719746

2.517597

2.211602

1.542653

Ann. Rev. Grow.

0.0054093859

-0.0743264261

-0.1215424867

-0.3024725968

NIAT

97.648

38.745

-398.996

-249.46

-209.754

Cash

11.645

-42.954

-19.761

-12.376

-19.592

Current Ratio

4.3880320091

4.0158770169

3.6443199748

2.3994780224

1.7590511995

D A

0.3420277412

0.3626518592

0.3395514545

0.8720349256

1.2247621964

Net Profit Margin

0.0360975678

0.0142458156

-0.1584828708

-0.1127960637

-0.1359696575

Altman

5.1571585622

4.890628592

3.9593952003

3.5466655636

2.2677250676

Chart

20042005200620072008

Revenues2,705,1132,719,7462,517,5972,211,6021,542,653

33322

1%-7%-12%-30%

9764838745-398996-249460-209754

$98$39$(399)$(249)$(210)

$11,645$(42,954)$(19,761)$(12,376)$(19,592)

$12$(43)$(20)$(12)$(20)

Current Ratio4.44.03.62.41.8

D/A0.30.40.30.91.2

Net profit Margin0.00.0-0.2-0.1-0.1

Altman5.164.893.963.552.27

START

tw

Financial Analysis Module - For Use With 5 Years Data

TABLE OF CONTENTS

Income Statements Input SheetActivity Ratios

Balance Sheets Input SheetLeverage Ratios

Year-to-Year Change Income StatementProfitability Ratios

Common Size Income StatementsAltman's Z-Score Analysis

Liquidity RatiosFinancial Analysis Summary

tw

TABLE OF CONTENTS

Print ALL Financial Analysis Worksheets

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

IS Input

LRH Enterprises, Inc.

Financial Analysis - Income Statement Data

Enter Name of this Company HERE:

LRH Enterprises, Inc.

Input the following information from the Company's Income Statements. It is important to input data carefully. Confirm

subtotals and Net Income with Company's Income Statements. Any line on the Income Statement can and should be

overwritten to match the Company's Income Statement EXCEPT the headings that are indicated in BOLD type (do not alter

bold headings as these are used to calculate various ratios). Enter whole numbers without commas. Indicate "In Millions",

"In Thousands," Etc.

Special Note: Charts within the Financial Analysis module may be copied to other applications for presentation purposes. Use the

Paste-Special-Picture command to paste charts as fixed graphic objects. They will not be linked to the original data, so if changes

are made, make sure to recopy/paste the charts to your presentation.

Prior Period4Prior Period3Prior Period2Prior Period1Most Recent Period

Overwrite the title cells with actual years of analysis

In Thousands20042005200620072008

Service Sales$162,521$156,245$129,161$108,133$87,032

Manufactured2,638,8772,628,9922,461,9522,177,5931,514,736

Merchandise Others10,6252,8462,1461,227102

Allowances, Credit, Restocking(106,176)(74,135)(78,232)(78,127)(60,755)-0.0401092996

Misc. Refunds(734)5,7982,5702,7761,538

Total Revenues or Sales2,705,1132,719,7462,517,5972,211,6021,542,653

Cost of Goods Sold1,478,2091,457,3101,544,6481,320,5041,036,753

Operating Income1,226,9041,262,436972,949891,098505,900

Selling Expenses472,119517,858508,924437,204274,132

General & Administrative566,397584,467744,278611,277362,673

Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)188,388160,111(280,253)(157,383)(130,905)

Depreciation and Amortization

Earnings Before Interest & Taxes (EBIT)188,388160,111(280,253)(157,383)(130,905)

Net Interest Expense39,40455,04459,85954,41945,789

Other Expense (Income)

Net Income Before Taxes (NIBT)148,984105,067(340,112)(211,802)(176,694)

Income Tax Expense51,33666,32258,88437,65833,060

Net Income After Taxes (NIAT)$97,648$38,745$(398,996)$(249,460)$(209,754)

Number of Shares Outstanding

Preferred Stock Dividends

Net Earnings per Share (EPS)0.00.00.00.00.0

DiscussionDiscussion

IS Input

0

0

0

0

0

Net Income After Taxes

BS Input

LRH Enterprises, Inc.

Financial Analysis - Balance Sheet Data

Input the following information from the Company's Balance Sheets. It is important to input data carefully. Confirm subtotals and

totals with Company's Financial Statements. Any line on the Balance Sheets can and should be overwritten to match the Company's

Balance Sheet EXCEPT the headings that are indicated in BOLD type (do not alter bold headings as these are used to calculate

various ratios). Enter whole numbers without commas.

Special Note: Charts within the Financial Analysis module may be copied to other applications for presentation purposes. Use the

Paste-Special-Picture command to paste charts as fixed graphic objects. They will not be linked to the original data, so if changes

are made, make sure to recopy/paste the charts to your presentation.

Prior Period4Prior Period3Prior Period2Prior Period1Most Recent Period

Overwrite the title cells with actual years, quarters, etc...

In Thousands20042005200620072008

Assets

Cash & Cash Equivalents$11,645$(42,954)$(19,761)$(12,376)$(19,592)

Accounts Receivable272,183264,889188,403206,295142,874

Inventory297,010378,319291,593296,070182,302

Other Variable Assets656,165668,545692,588174,266172,844

Other Current Assets2,2655,7482,0624,13410,057

Total Current Assets1,239,2681,274,5471,154,885668,389488,485

Land and Buildings

Furniture and Equipment1,085,8971,107,3331,109,4361,108,8061,113,384

Other Fixed Assets(1,041,658)(1,041,658)(1,041,658)(1,085,897)(1,085,897)

Total Fixed Assets44,23965,67567,77822,90927,487

Total Assets1,283,5071,340,2221,222,663691,298515,972

Liabilities and Stockholder's Equity

Liabilities

Accounts Payable233,944276,862295,267255,150279,512

Accrued Liabilities

Current Maturities of LT Debt

Suspense1,216(6,745)21,63323,407(9,628)

Other Current Liabilities47,26047,2600.0(1)7,814

Total Current Liabilities282,420317,377316,900278,556277,698

LT Debt, net of current portion137,346151,139117,341205,328153,729

Total Tax Liabilities19,22917,518(19,084)118,952200,516

Total Liabilities438,995486,034415,157602,836631,943

Stockholder's Equity

Common Stock32,95832,95832,95832,95832,958

Retained Earnings609,597670,401700,845164,928(97,654)

Additional Paid-in Capital383,932145,611145,611

Other Equity93,26233,580(403,840)(255,035)(196,885)

Total Stockholder's Equity735,817736,939713,89588,462(115,970)

Total Liabilities & Stockholder's Equity$1,174,812$1,222,973$1,129,052$691,298$515,973

$956,848$957,170$837,985$389,833$210,787

Discussion

Check Assets = Liabilities + Equity -->OUT OF BALANCEOUT OF BALANCEOUT OF BALANCEOKOUT OF BALANCE

(108,695)(117,249)(93,611)0.01

Print

Go To Start

Print

Go To Start

YR TO YR CHG IS

LRH Enterprises, Inc.

Financial Analysis

Income Statement - Year-to-Year Percentage Changes

Percentage Increase/(Decrease) 2004 to 2005Percentage Increase/(Decrease) 2005 to 2006Percentage Increase/(Decrease) 2006 to 2007Percentage Increase/(Decrease) 2007 to 2008Five-Yr Average Percentage Increase/(Decrease) 2004-2008Increase/(Decrease) 2005 to 2004Increase/(Decrease) 2005 to 2006Increase/(Decrease) 2006 to 2007Increase/(Decrease) 2007 to 2008

Service Sales(3.86%)(17.33%)(16.28%)(19.51%)(14.25%)(6,276.00)(27,084.00)(21,028.00)(21,101.00)

Manufactured(0.37%)(6.35%)(11.55%)(30.44%)(12.18%)(9,885.00)(167,040.00)(284,359.00)(662,857.00)

Merchandise Others(73.21%)(24.60%)(42.82%)(91.69%)(58.08%)(7,779.00)(700.00)(919.00)(1,125.00)

Misc. Refunds889.92%(55.67%)8.02%(44.60%)199.42%6,532.00(3,228.00)206.00(1,238.00)

Total Revenues or Sales0.54%(7.43%)(12.15%)(30.25%)(12.32%)14,633.00(202,149.00)(305,995.00)(668,949.00)

Cost of Goods Sold(1.41%)5.99%(14.51%)(21.49%)(7.85%)(20,899.00)87,338.00(224,144.00)(283,751.00)

Operating Income2.90%(22.93%)(8.41%)(43.23%)(17.92%)35,532.00(289,487.00)(81,851.00)(385,198.00)

Selling Expenses9.69%(1.73%)(14.09%)(37.30%)(10.86%)45,739.00(8,934.00)(71,720.00)(163,072.00)

General & Administrative3.19%27.34%(17.87%)(40.67%)(7.00%)18,070.00159,811.00(133,001.00)(248,604.00)

Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)(15.01%)(275.04%)43.84%16.82%(57.35%)(28,277.00)(440,364.00)122,870.0026,478.00

Depreciation and Amortization0.00%0.00%0.00%0.00%0.00%0.00.00.00.0

Earnings Before Interest & Taxes (EBIT)(15.01%)(275.04%)43.84%16.82%(57.35%)(28,277.00)(440,364.00)122,870.0026,478.00

Net Interest Expense39.69%8.75%(9.09%)(15.86%)5.87%15,640.004,815.00(5,440.00)(8,630.00)

Other Expense (Income)0.00%0.00%0.00%0.00%0.00%0.00.00.00.0

Net Income Before Taxes (NIBT)(29.48%)(423.71%)37.73%16.58%(99.72%)(43,917.00)(445,179.00)128,310.0035,108.00

Income Tax Expense29.19%(11.21%)(36.05%)(12.21%)(7.57%)14,986.00(7,438.00)(21,226.00)(4,598.00)

Net Income After Taxes (NIAT)(60.32%)(1129.80%)37.48%15.92%(284.18%)(58,903.00)(437,741.00)149,536.0039,706.00

Discussion

Print

Go To Start

COMMON SIZE IS

LRH Enterprises, Inc.

Financial Analysis

Common Size Income Statements

Line Items Reflected as a Percentage of Total Revenues or Sales

20042005200620072008

Service Sales6.01%5.74%5.13%4.89%5.64%

Manufactured97.55%96.66%97.79%98.46%98.19%

Merchandise Others0.39%0.10%0.09%0.06%0.01%

Misc. Refunds-0.03%0.21%0.10%0.13%0.10%

Total Revenues or Sales100.00%100.00%100.00%100.00%100.00%

Cost of Goods Sold54.65%53.58%61.35%59.71%67.21%

Operating Income45.35%46.42%38.65%40.29%32.79%

Selling Expenses17.45%19.04%20.21%19.77%17.77%

General & Administrative20.94%21.49%29.56%27.64%23.51%

Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)6.96%5.89%-11.13%-7.12%-8.49%

Depreciation and Amortization0.00%0.00%0.00%0.00%0.00%

Earnings Before Interest & Taxes (EBIT)6.96%5.89%-11.13%-7.12%-8.49%

Net Interest Expense1.46%2.02%2.38%2.46%2.97%

Other Expense (Income)0.00%0.00%0.00%0.00%0.00%

Net Income Before Taxes (NIBT)5.51%3.86%-13.51%-9.58%-11.45%

Income Tax Expense1.90%2.44%2.34%1.70%2.14%

Net Income After Taxes (NIAT)3.61%1.42%-15.85%-11.28%-13.60%

Discussion

Print

Go To Start

Liquidity

LRH Enterprises, Inc.

Financial Analysis

Liquidity Ratios & Analysis

Current Ratio20042005200620072008

Total Current Assets1,239,2681,274,5471,154,885668,389488,485

Total Current Liabilities282,420317,377316,900278,556277,698

=Current Ratio4.394.023.642.401.76

Discussion

Quick Ratio20042005200620072008

Total Current Assets - Inventories942,258896,228863,292372,319306,183

Total Current Liabilities282,420317,377316,900278,556277,698

=Quick Ratio3.342.822.721.341.10

Discussion

Inventory to Net Working Capital20042005200620072008

Inventory297,010378,319291,593296,070182,302

Current Assets - Current Liabilities956,848957,170837,985389,833210,787

=Inventory to Net Working Capital0.310.400.350.760.86

Discussion

Indicates the extent to which the claims of short-term creditors are covered by assets that could be converted into cash during the period corresponding to the maturity of the liabilities.

Measures the ability of the firm to pay off its short-term obligations without having to sell off its inventories.

Measures the extent to which the firm's working capital is tied up in inventory.

Liquidity

0

0

0

0

0

Activity

0

0

0

0

0

Leverage

0

0

0

0

0

Profitability

LRH Enterprises, Inc.

Financial Analysis

Activity Ratios & Analysis

Inventory Turnover20042005200620072008

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

Inventory297,010378,319291,593296,070182,302

=Inventory Turnover9.117.198.637.478.46

Discussion

Total-Asset Turnover20042005200620072008

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

Total Assets1,283,5071,340,2221,222,663691,298515,972

=Total Asset Turnover2.112.032.063.202.99

Discussion

Average Collection Period20042005200620072008

A/R272,183264,889188,403206,295142,874

Average Daily Sales7,411.37,451.46,897.56,059.24,226.4

=Average Collection Period36.7335.5527.3134.0533.80

Discussion

Print

Go To Start

When compared to industry averages, this indicates whether a company has excessive or perhaps inadequate finished-goods inventory.

Measures how well the company's assets are utilized. If lower than the industry average, this would indicate the firm is not generating sufficient sales given its investment in assets.

Indicates the average number of days the firm must wait for payment after making the sale.

Profitability

0

0

0

0

0

Altman's Z

0

0

0

0

0

Summary

0

0

0

0

0

LRH Enterprises, Inc.

Financial Analysis

Leverage Ratios & Analysis

Debt-to-Assets Ratio20042005200620072008

Total Debt438,995486,034415,157602,836631,943

Total Assets1,283,5071,340,2221,222,663691,298515,972

=Debt-to-Assets Ratio0.360.340.871.22

Discussion

Debt-to-Equity Ratio20042005200620072008

Total Debt438,995486,034415,157602,836631,943

Total Equity735,817736,939713,89588,462(115,970)

=Debt-to-Equity Ratio0.600.660.586.81(5.45)

Discussion

Times Interest Earned20042005200620072008

EBIT188,388160,111(280,253)(157,383)(130,905)

Interest Expense39,40455,04459,85954,41945,789

=Times Interest Earned4.782.91(4.68)(2.89)(2.86)

Discussion

Print

Go To Start

Indicates the extent to which borrowed funds have been used to finance the firm's operations.

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

LRH Enterprises, Inc.

Financial Analysis

Profitability Ratios & Analysis

Gross Profit Margin20042005200620072008

Sales - COGS1,226,9041,262,436972,949891,098505,900

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

=Gross Profit Margin0.450.460.390.400.33

Discussion

Net Profit Margin20042005200620072008

NIAT97,64838,745(398,996)(249,460)(209,754)

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

=Net Profit Margin0.040.01(0.16)(0.11)(0.14)

Discussion

Return on Sales20042005200620072008

EBIT188,388160,111(280,253)(157,383)(130,905)

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

=Return on Sales0.070.06(0.11)(0.07)(0.08)

Discussion

Return on Equity20042005200620072008

NIAT97,64838,745(398,996)(249,460)(209,754)

Stockholder's Equity735,817736,939713,89588,462(115,970)

=Return on Equity0.130.05(0.56)(2.82)1.81

Discussion

Return on Assets20042005200620072008

NIAT97,64838,745(398,996)(249,460)(209,754)

Total Assets1,283,5071,340,2221,222,663691,298515,972

=Return on Assets0.080.03(0.33)(0.36)(0.41)

Discussion

Measures the extent to which earnings can decline without the firm being unable to meet its annual interest costs.

Indicates the extent to which borrowed funds have been used to finance the firm's operations.

Print

Go To Start

Indicates the total margin available to cover operating expenses and yield a profit.

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

LRH Enterprises, Inc.

Financial Analysis

The Ratios:Results:

20042005200620072008

Net Working Capital / Total Assets0.750.710.690.560.41

Retained Earnings / Total Assets0.470.500.570.24(0.19)

EBIT / Total Assets0.150.12(0.23)(0.23)(0.25)

Market Value of Equity / Book Value of Debt1.681.521.720.15(0.18)

Sales / Total Assets2.112.032.063.202.99

Net Worth / Total Debt1.681.521.720.15(0.18)

Equity and Total Debt, respectively. In addition, it assumes that Total Equity equals Net Worth, so that, in fact, the

ratios X4 and X4a are computed to be identical. The resulting errors from these simplifying assumptions are negligible.

The Formulae and Results:

For manufacturers:

5.164.893.963.552.27

SafeSafeSafeSafeGray

For non-manufacturers:

9.148.676.593.070.14

SafeSafeSafeSafeBankrupt

What does it mean?

CriteriaCriteriaSafe RegionGray RegionBankrupt Region

Z (for Manufacturers)Z (for manufacturers)> 2.991.81 -- 2.99< 1.81

> 2.591.11 -- 2.59

D/A Ratio

REVENUE

2.705113

2.719746

2.517597

2.211602

1.542653

Ann. Rev. Grow.

0.0054093859

-0.0743264261

-0.1215424867

-0.3024725968

NIAT

97.648

38.745

-398.996

-249.46

-209.754

Cash

11.645

-42.954

-19.761

-12.376

-19.592

Current Ratio

4.3880320091

4.0158770169

3.6443199748

2.3994780224

1.7590511995

D A

0.3420277412

0.3626518592

0.3395514545

0.8720349256

1.2247621964

Net Profit Margin

0.0360975678

0.0142458156

-0.1584828708

-0.1127960637

-0.1359696575

Altman

5.1571585622

4.890628592

3.9593952003

3.5466655636

2.2677250676

Chart

20042005200620072008

Revenues2,705,1132,719,7462,517,5972,211,6021,542,653

33322

1%-7%-12%-30%

9764838745-398996-249460-209754

$98$39$(399)$(249)$(210)

$11,645$(42,954)$(19,761)$(12,376)$(19,592)

$12$(43)$(20)$(12)$(20)

Current Ratio4.44.03.62.41.8

D/A0.30.40.30.91.2

Net profit Margin0.00.0-0.2-0.1-0.1

Altman5.164.893.963.552.27

START

tw

Financial Analysis Module - For Use With 5 Years Data

TABLE OF CONTENTS

Income Statements Input SheetActivity Ratios

Balance Sheets Input SheetLeverage Ratios

Year-to-Year Change Income StatementProfitability Ratios

Common Size Income StatementsAltman's Z-Score Analysis

Liquidity RatiosFinancial Analysis Summary

tw

TABLE OF CONTENTS

Print ALL Financial Analysis Worksheets

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

IS Input

LRH Enterprises, Inc.

Financial Analysis - Income Statement Data

Enter Name of this Company HERE:

LRH Enterprises, Inc.

Input the following information from the Company's Income Statements. It is important to input data carefully. Confirm

subtotals and Net Income with Company's Income Statements. Any line on the Income Statement can and should be

overwritten to match the Company's Income Statement EXCEPT the headings that are indicated in BOLD type (do not alter

bold headings as these are used to calculate various ratios). Enter whole numbers without commas. Indicate "In Millions",

"In Thousands," Etc.

Special Note: Charts within the Financial Analysis module may be copied to other applications for presentation purposes. Use the

Paste-Special-Picture command to paste charts as fixed graphic objects. They will not be linked to the original data, so if changes

are made, make sure to recopy/paste the charts to your presentation.

Prior Period4Prior Period3Prior Period2Prior Period1Most Recent Period

Overwrite the title cells with actual years of analysis

In Thousands20042005200620072008

Service Sales$162,521$156,245$129,161$108,133$87,032

Manufactured2,638,8772,628,9922,461,9522,177,5931,514,736

Merchandise Others10,6252,8462,1461,227102

Allowances, Credit, Restocking(106,176)(74,135)(78,232)(78,127)(60,755)-0.0401092996

Misc. Refunds(734)5,7982,5702,7761,538

Total Revenues or Sales2,705,1132,719,7462,517,5972,211,6021,542,653

Cost of Goods Sold1,478,2091,457,3101,544,6481,320,5041,036,753

Operating Income1,226,9041,262,436972,949891,098505,900

Selling Expenses472,119517,858508,924437,204274,132

General & Administrative566,397584,467744,278611,277362,673

Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)188,388160,111(280,253)(157,383)(130,905)

Depreciation and Amortization

Earnings Before Interest & Taxes (EBIT)188,388160,111(280,253)(157,383)(130,905)

Net Interest Expense39,40455,04459,85954,41945,789

Other Expense (Income)

Net Income Before Taxes (NIBT)148,984105,067(340,112)(211,802)(176,694)

Income Tax Expense51,33666,32258,88437,65833,060

Net Income After Taxes (NIAT)$97,648$38,745$(398,996)$(249,460)$(209,754)

Number of Shares Outstanding

Preferred Stock Dividends

Net Earnings per Share (EPS)0.00.00.00.00.0

DiscussionDiscussion

IS Input

0

0

0

0

0

Net Income After Taxes

BS Input

LRH Enterprises, Inc.

Financial Analysis - Balance Sheet Data

Input the following information from the Company's Balance Sheets. It is important to input data carefully. Confirm subtotals and

totals with Company's Financial Statements. Any line on the Balance Sheets can and should be overwritten to match the Company's

Balance Sheet EXCEPT the headings that are indicated in BOLD type (do not alter bold headings as these are used to calculate

various ratios). Enter whole numbers without commas.

Special Note: Charts within the Financial Analysis module may be copied to other applications for presentation purposes. Use the

Paste-Special-Picture command to paste charts as fixed graphic objects. They will not be linked to the original data, so if changes

are made, make sure to recopy/paste the charts to your presentation.

Prior Period4Prior Period3Prior Period2Prior Period1Most Recent Period

Overwrite the title cells with actual years, quarters, etc...

In Thousands20042005200620072008

Assets

Cash & Cash Equivalents$11,645$(42,954)$(19,761)$(12,376)$(19,592)

Accounts Receivable272,183264,889188,403206,295142,874

Inventory297,010378,319291,593296,070182,302

Other Variable Assets656,165668,545692,588174,266172,844

Other Current Assets2,2655,7482,0624,13410,057

Total Current Assets1,239,2681,274,5471,154,885668,389488,485

Land and Buildings

Furniture and Equipment1,085,8971,107,3331,109,4361,108,8061,113,384

Other Fixed Assets(1,041,658)(1,041,658)(1,041,658)(1,085,897)(1,085,897)

Total Fixed Assets44,23965,67567,77822,90927,487

Total Assets1,283,5071,340,2221,222,663691,298515,972

Liabilities and Stockholder's Equity

Liabilities

Accounts Payable233,944276,862295,267255,150279,512

Accrued Liabilities

Current Maturities of LT Debt

Suspense1,216(6,745)21,63323,407(9,628)

Other Current Liabilities47,26047,2600.0(1)7,814

Total Current Liabilities282,420317,377316,900278,556277,698

LT Debt, net of current portion137,346151,139117,341205,328153,729

Total Tax Liabilities19,22917,518(19,084)118,952200,516

Total Liabilities438,995486,034415,157602,836631,943

Stockholder's Equity

Common Stock32,95832,95832,95832,95832,958

Retained Earnings609,597670,401700,845164,928(97,654)

Additional Paid-in Capital383,932145,611145,611

Other Equity93,26233,580(403,840)(255,035)(196,885)

Total Stockholder's Equity735,817736,939713,89588,462(115,970)

Total Liabilities & Stockholder's Equity$1,174,812$1,222,973$1,129,052$691,298$515,973

$956,848$957,170$837,985$389,833$210,787

Discussion

Check Assets = Liabilities + Equity -->OUT OF BALANCEOUT OF BALANCEOUT OF BALANCEOKOUT OF BALANCE

(108,695)(117,249)(93,611)0.01

Print

Go To Start

Print

Go To Start

YR TO YR CHG IS

LRH Enterprises, Inc.

Financial Analysis

Income Statement - Year-to-Year Percentage Changes

Percentage Increase/(Decrease) 2004 to 2005Percentage Increase/(Decrease) 2005 to 2006Percentage Increase/(Decrease) 2006 to 2007Percentage Increase/(Decrease) 2007 to 2008Five-Yr Average Percentage Increase/(Decrease) 2004-2008Increase/(Decrease) 2005 to 2004Increase/(Decrease) 2005 to 2006Increase/(Decrease) 2006 to 2007Increase/(Decrease) 2007 to 2008

Service Sales(3.86%)(17.33%)(16.28%)(19.51%)(14.25%)(6,276.00)(27,084.00)(21,028.00)(21,101.00)

Manufactured(0.37%)(6.35%)(11.55%)(30.44%)(12.18%)(9,885.00)(167,040.00)(284,359.00)(662,857.00)

Merchandise Others(73.21%)(24.60%)(42.82%)(91.69%)(58.08%)(7,779.00)(700.00)(919.00)(1,125.00)

Misc. Refunds889.92%(55.67%)8.02%(44.60%)199.42%6,532.00(3,228.00)206.00(1,238.00)

Total Revenues or Sales0.54%(7.43%)(12.15%)(30.25%)(12.32%)14,633.00(202,149.00)(305,995.00)(668,949.00)

Cost of Goods Sold(1.41%)5.99%(14.51%)(21.49%)(7.85%)(20,899.00)87,338.00(224,144.00)(283,751.00)

Operating Income2.90%(22.93%)(8.41%)(43.23%)(17.92%)35,532.00(289,487.00)(81,851.00)(385,198.00)

Selling Expenses9.69%(1.73%)(14.09%)(37.30%)(10.86%)45,739.00(8,934.00)(71,720.00)(163,072.00)

General & Administrative3.19%27.34%(17.87%)(40.67%)(7.00%)18,070.00159,811.00(133,001.00)(248,604.00)

Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)(15.01%)(275.04%)43.84%16.82%(57.35%)(28,277.00)(440,364.00)122,870.0026,478.00

Depreciation and Amortization0.00%0.00%0.00%0.00%0.00%0.00.00.00.0

Earnings Before Interest & Taxes (EBIT)(15.01%)(275.04%)43.84%16.82%(57.35%)(28,277.00)(440,364.00)122,870.0026,478.00

Net Interest Expense39.69%8.75%(9.09%)(15.86%)5.87%15,640.004,815.00(5,440.00)(8,630.00)

Other Expense (Income)0.00%0.00%0.00%0.00%0.00%0.00.00.00.0

Net Income Before Taxes (NIBT)(29.48%)(423.71%)37.73%16.58%(99.72%)(43,917.00)(445,179.00)128,310.0035,108.00

Income Tax Expense29.19%(11.21%)(36.05%)(12.21%)(7.57%)14,986.00(7,438.00)(21,226.00)(4,598.00)

Net Income After Taxes (NIAT)(60.32%)(1129.80%)37.48%15.92%(284.18%)(58,903.00)(437,741.00)149,536.0039,706.00

Discussion

Print

Go To Start

COMMON SIZE IS

LRH Enterprises, Inc.

Financial Analysis

Common Size Income Statements

Line Items Reflected as a Percentage of Total Revenues or Sales

20042005200620072008

Service Sales6.01%5.74%5.13%4.89%5.64%

Manufactured97.55%96.66%97.79%98.46%98.19%

Merchandise Others0.39%0.10%0.09%0.06%0.01%

Misc. Refunds-0.03%0.21%0.10%0.13%0.10%

Total Revenues or Sales100.00%100.00%100.00%100.00%100.00%

Cost of Goods Sold54.65%53.58%61.35%59.71%67.21%

Operating Income45.35%46.42%38.65%40.29%32.79%

Selling Expenses17.45%19.04%20.21%19.77%17.77%

General & Administrative20.94%21.49%29.56%27.64%23.51%

Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)6.96%5.89%-11.13%-7.12%-8.49%

Depreciation and Amortization0.00%0.00%0.00%0.00%0.00%

Earnings Before Interest & Taxes (EBIT)6.96%5.89%-11.13%-7.12%-8.49%

Net Interest Expense1.46%2.02%2.38%2.46%2.97%

Other Expense (Income)0.00%0.00%0.00%0.00%0.00%

Net Income Before Taxes (NIBT)5.51%3.86%-13.51%-9.58%-11.45%

Income Tax Expense1.90%2.44%2.34%1.70%2.14%

Net Income After Taxes (NIAT)3.61%1.42%-15.85%-11.28%-13.60%

Discussion

Print

Go To Start

Liquidity

LRH Enterprises, Inc.

Financial Analysis

Liquidity Ratios & Analysis

Current Ratio20042005200620072008

Total Current Assets1,239,2681,274,5471,154,885668,389488,485

Total Current Liabilities282,420317,377316,900278,556277,698

=Current Ratio4.394.023.642.401.76

Discussion

Quick Ratio20042005200620072008

Total Current Assets - Inventories942,258896,228863,292372,319306,183

Total Current Liabilities282,420317,377316,900278,556277,698

=Quick Ratio3.342.822.721.341.10

Discussion

Inventory to Net Working Capital20042005200620072008

Inventory297,010378,319291,593296,070182,302

Current Assets - Current Liabilities956,848957,170837,985389,833210,787

=Inventory to Net Working Capital0.310.400.350.760.86

Discussion

Indicates the extent to which the claims of short-term creditors are covered by assets that could be converted into cash during the period corresponding to the maturity of the liabilities.

Measures the ability of the firm to pay off its short-term obligations without having to sell off its inventories.

Measures the extent to which the firm's working capital is tied up in inventory.

Liquidity

0

0

0

0

0

Activity

0

0

0

0

0

Leverage

0

0

0

0

0

Profitability

LRH Enterprises, Inc.

Financial Analysis

Activity Ratios & Analysis

Inventory Turnover20042005200620072008

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

Inventory297,010378,319291,593296,070182,302

=Inventory Turnover9.117.198.637.478.46

Discussion

Total-Asset Turnover20042005200620072008

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

Total Assets1,283,5071,340,2221,222,663691,298515,972

=Total Asset Turnover2.112.032.063.202.99

Discussion

Average Collection Period20042005200620072008

A/R272,183264,889188,403206,295142,874

Average Daily Sales7,411.37,451.46,897.56,059.24,226.4

=Average Collection Period36.7335.5527.3134.0533.80

Discussion

Print

Go To Start

When compared to industry averages, this indicates whether a company has excessive or perhaps inadequate finished-goods inventory.

Measures how well the company's assets are utilized. If lower than the industry average, this would indicate the firm is not generating sufficient sales given its investment in assets.

Indicates the average number of days the firm must wait for payment after making the sale.

Profitability

0

0

0

0

0

Altman's Z

0

0

0

0

0

Summary

0

0

0

0

0

LRH Enterprises, Inc.

Financial Analysis

Leverage Ratios & Analysis

Debt-to-Assets Ratio20042005200620072008

Total Debt438,995486,034415,157602,836631,943

Total Assets1,283,5071,340,2221,222,663691,298515,972

=Debt-to-Assets Ratio0.360.340.871.22

Discussion

Debt-to-Equity Ratio20042005200620072008

Total Debt438,995486,034415,157602,836631,943

Total Equity735,817736,939713,89588,462(115,970)

=Debt-to-Equity Ratio0.600.660.586.81(5.45)

Discussion

Times Interest Earned20042005200620072008

EBIT188,388160,111(280,253)(157,383)(130,905)

Interest Expense39,40455,04459,85954,41945,789

=Times Interest Earned4.782.91(4.68)(2.89)(2.86)

Discussion

Print

Go To Start

Indicates the extent to which borrowed funds have been used to finance the firm's operations.

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

LRH Enterprises, Inc.

Financial Analysis

Profitability Ratios & Analysis

Gross Profit Margin20042005200620072008

Sales - COGS1,226,9041,262,436972,949891,098505,900

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

=Gross Profit Margin0.450.460.390.400.33

Discussion

Net Profit Margin20042005200620072008

NIAT97,64838,745(398,996)(249,460)(209,754)

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

=Net Profit Margin0.040.01(0.16)(0.11)(0.14)

Discussion

Return on Sales20042005200620072008

EBIT188,388160,111(280,253)(157,383)(130,905)

Sales2,705,1132,719,7462,517,5972,211,6021,542,653

=Return on Sales0.070.06(0.11)(0.07)(0.08)

Discussion

Return on Equity20042005200620072008

NIAT97,64838,745(398,996)(249,460)(209,754)

Stockholder's Equity735,817736,939713,89588,462(115,970)

=Return on Equity0.130.05(0.56)(2.82)1.81

Discussion

Return on Assets20042005200620072008

NIAT97,64838,745(398,996)(249,460)(209,754)

Total Assets1,283,5071,340,2221,222,663691,298515,972

=Return on Assets0.080.03(0.33)(0.36)(0.41)

Discussion

Measures the extent to which earnings can decline without the firm being unable to meet its annual interest costs.

Indicates the extent to which borrowed funds have been used to finance the firm's operations.

Print

Go To Start

Indicates the total margin available to cover operating expenses and yield a profit.

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

LRH Enterprises, Inc.

Financial Analysis

The Ratios:Results:

20042005200620072008

Net Working Capital / Total Assets0.750.710.690.560.41

Retained Earnings / Total Assets0.470.500.570.24(0.19)

EBIT / Total Assets0.150.12(0.23)(0.23)(0.25)

Market Value of Equity / Book Value of Debt1.681.521.720.15(0.18)

Sales / Total Assets2.112.032.063.202.99

Net Worth / Total Debt1.681.521.720.15(0.18)

Equity and Total Debt, respectively. In addition, it assumes that Total Equity equals Net Worth, so that, in fact, the

ratios X4 and X4a are computed to be identical. The resulting errors from these simplifying assumptions are negligible.

The Formulae and Results:

For manufacturers:

5.164.893.963.552.27

SafeSafeSafeSafeGray

For non-manufacturers:

9.148.676.593.070.14

SafeSafeSafeSafeBankrupt

What does it mean?

CriteriaCriteriaSafe RegionGray RegionBankrupt Region

Z (for Manufacturers)Z (for manufacturers)> 2.991.81 -- 2.99< 1.81

> 2.591.11 -- 2.59

Coverage Ratio

REVENUE

2.705113

2.719746

2.517597

2.211602

1.542653

Ann. Rev. Grow.

0.0054093859

-0.0743264261

-0.1215424867

-0.3024725968

NIAT

97.648

38.745

-398.996

-249.46

-209.754

Cash

11.645

-42.954

-19.761

-12.376

-19.592

Current Ratio

4.3880320091

4.0158770169

3.6443199748

2.3994780224

1.7590511995

D A

0.3420277412

0.3626518592

0.3395514545

0.8720349256

1.2247621964

Net Profit Margin

0.0360975678

0.0142458156

-0.1584828708

-0.1127960637

-0.1359696575

Altman

5.1571585622

4.890628592

3.9593952003

3.5466655636

2.2677250676

Interest Coverage Ratio

4.7809359456

2.9087820653

-4.6818857649

-2.8920597585

-2.8588744021

Chart

20042005200620072008

Revenues2,705,1132,719,7462,517,5972,211,6021,542,653

33322

1%-7%-12%-30%

9764838745-398996-249460-209754

$98$39$(399)$(249)$(210)

$11,645$(42,954)$(19,761)$(12,376)$(19,592)

$12$(43)$(20)$(12)$(20)

Current Ratio4.44.03.62.41.8

D/A0.30.40.30.91.2

Net profit Margin0.00.0-0.2-0.1-0.1

Altman5.164.893.963.552.27

Earnings Before Interest & Taxes (EBIT)188,388160,111(280,253)(157,383)(130,905)

Net Interest Expense39,40455,04459,85954,41945,789

Interest Coverage Ratio4.82.9-4.7-2.9-2.9

Average Collection Period36.7335.5527.3134.0533.80

Inventory297,010378,319291,593296,070182,302

NWC956,848957,170837,985389,833210,787

Inventory/NWC0.31040457840.39524744820.34796923570.7594790590.8648635827

START

tw

Financial Analysis Module - For Use With 5 Years Data

TABLE OF CONTENTS

Income Statements Input SheetActivity Ratios

Balance Sheets Input SheetLeverage Ratios

Year-to-Year Change Income StatementProfitability Ratios

Common Size Income StatementsAltman's Z-Score Analysis

Liquidity RatiosFinancial Analysis Summary

tw

TABLE OF CONTENTS

Print ALL Financial Analysis Worksheets

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

Go To Input

Print

IS Input

LRH Enterprises, Inc.

Financial Analysis - Income Statement Data

Enter Name of this Company HERE:

LRH Enterprises, Inc.

Input the following information from the Company's Income Statements. It is important to input data carefully. Confirm

subtotals and Net Income with Company's Income Statements. Any line on the Income Statement can and should be

overwritten to match the Company's Income Statement EXCEPT the headings that are indicated in BOLD type (do not alter

bold headings as these are used to calculate various ratios). Enter whole numbers without commas. Indicate "In Millions",

"In Thousands," Etc.

Special Note: Charts within the Financial Analysis module may be copied to other applications for presentation purposes. Use the

Paste-Special-Picture command to paste charts as fixed graphic objects. They will not be linked to the original data, so if changes

are made, make sure to recopy/paste the charts to your presentation.

Prior Period4Prior Period3Prior Period2Prior Period1Most Recent Period

Overwrite the title cells with actual years of analysis

In Thousands20042005200620072008

Service Sales$162,521$156,245$129,161$108,133$87,032

Manufactured2,638,8772,628,9922,461,9522,177,5931,514,736

Merchandise Others10,6252,8462,1461,227102

Allowances, Credit, Restocking(106,176)(74,135)(78,232)(78,127)(60,755)-0.0401092996

Misc. Refunds(734)5,7982,5702,7761,538

Total Revenues or Sales2,705,1132,719,7462,517,5972,211,6021,542,653

Cost of Goods Sold1,478,2091,457,3101,544,6481,320,5041,036,753

Operating Income1,226,9041,262,436972,949891,098505,900

Selling Expenses472,119517,858508,924437,204274,132

General & Administrative566,397584,467744,278611,277362,673

Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)188,388160,111(280,253)(157,383)(130,905)

Depreciation and Amortization

Earnings Before Interest & Taxes (EBIT)188,388160,111(280,253)(157,383)(130,905)

Net Interest Expense39,40455,04459,85954,41945,789

Other Expense (Income)

Net Income Before Taxes (NIBT)148,984105,067(340,112)(211,802)(176,694)

Income Tax Expense51,33666,32258,88437,65833,060

Net Income After Taxes (NIAT)$97,648$38,745$(398,996)$(249,460)$(209,754)

Number of Shares Outstanding

Preferred Stock Dividends

Net Earnings per Share (EPS)0.00.00.00.00.0

DiscussionDiscussion

IS Input

Net Income After Taxes

BS Input

LRH Enterprises, Inc.

Financial Analysis - Balance Sheet Data

Input the following information from the Company's Balance Sheets. It is important to input data carefully. Confirm subtotals and

totals with Company's Financial Statements. Any line on the Balance Sheets can and should be overwritten to match the Company's

Balance Sheet EXCEPT the headings that are indicated in BOLD type (do not alter bold headings as these are used to calculate

various ratios). Enter whole numbers without commas.

Special Note: Charts within the Financial Analysis module may be copied to other applications for presentation purposes. Use the

Paste-Special-Picture command to paste charts as fixed graphic objects. They will not be linked to the original data, so if changes

are made, make sure to recopy/paste the charts to your presentation.

Prior Period4Prior Period3Prior Period2Prior Period1Most Recent Period

Overwrite the title cells with actual years, quarters, etc...

In Thousands20042005200620072008

Assets

Cash & Cash Equivalents$11,645$(42,954)$(19,761)$(12,376)$(19,592)

Accounts Receivable272,183264,889188,403206,295142,874

Inventory297,010378,319291,593296,070182,302

Other Variable Assets656,165668,545692,588174,266172,844

Other Current Assets2,2655,7482,0624,13410,057

Total Current Assets1,239,2681,274,5471,154,885668,389488,485

Land and Buildings

Furniture and Equipment1,085,8971,107,3331,109,4361,108,8061,113,384

Other Fixed Assets(1,041,658)(1,041,658)(1,041,658)(1,085,897)(1,085,897)

Total Fixed Assets44,23965,67567,77822,90927,487

Total Assets1,283,5071,340,2221,222,663691,298515,972

Liabilities and Stockholder's Equity

Liabilities

Accounts Payable233,944276,862295,267255,150279,512

Accrued Liabilities

Current Maturities of LT Debt

Suspense1,216(6,745)21,63323,407(9,628)

Other Current Liabilities47,26047,2600.0(1)7,814

Total Current Liabilities282,420317,377316,900278,556277,698

LT Debt, net of current portion137,346151,139117,341205,328153,729

Total Tax Liabilities19,22917,518(19,084)118,952200,516

Total Liabilities438,995486,034415,157602,836631,943

Stockholder's Equity

Common Stock32,95832,95832,95832,95832,958

Retained Earnings609,597670,401700,845164,928(97,654)

Additional Paid-in Capital383,932145,611145,611

Other Equity93,26233,580(403,840)(255,035)(196,885)

Total Stockholder's Equity735,817736,939713,89588,462(115,970)

Total Liabilities & Stockholder's Equity$1,174,812$1,222,973$1,129,052$691,298$515,973

$956,848$957,170$837,985$389,833$210,787

Discussion

Check Assets = Liabilities + Equity -->OUT OF BALANCEOUT OF BALANCEOUT OF BALANCEOKOUT OF BALANCE

(108,695)(117,249)(93,611)0.01

Print

Go To Start

Print

Go To Start

YR TO YR CHG IS

LRH Enterprises, Inc.

Financial Analysis

Income Statement - Year-to-Year Percentage Changes

Percentage Increase/(Decrease) 2004 to 2005Percentage Increase/(Decrease) 2005 to 2006Percentage Increase/(Decrease) 2006 to 2007Percentage Increase/(Decrease) 2007 to 2008Five-Yr Average Percentage Increase/(Decrease) 2004-2008Increase/(Decrease) 2005 to 2004Increase/(Decrease) 2005 to 2006Increase/(Decrease) 2006 to 2007Increase/(Decrease) 2007 to 2008

Service Sales(3.86%)(17.33%)(16.28%)(19.51%)(14.25%)(6,276.00)(27,084.00)(21,028.00)(21,101.00)

Manufactured(0.37%)(6.35%)(11.55%)(30.44%)(12.18%)(9,885.00)(167,040.00)(284,359.00)(662,857.00)

Merchandise Others(73.21%)(24.60%)(42.82%)(91.69%)(58.08%)(7,779.00)(700.00)(919.00)(1,125.00)

Misc. Refunds889.92%(55.67%)8.02%(44.60%)199.42%6,532.00(3,228.00)206.00(1,238.00)

Total Revenues or Sales0.54%(7.43%)(12.15%)(30.25%)(12.32%)14,633.00(202,149.00)(305,995.00)(668,949.00)

Cost of Goods Sold(1.41%)5.99%(14.51%)(21.49%)(7.85%)(20,899.00)87,338.00(224,144.00)(283,751.00)

Operating Income2.90%(22.93%)(8.41%)(43.23%)(17.92%)35,532.00(289,487.00)(81,851.00)(385,198.00)

Selling Expenses9.69%(1.73%)(14.09%)(37.30%)(10.86%)45,739.00(8,934.00)(71,720.00)(163,072.00)

General & Administrative3.19%27.34%(17.87%)(40.67%)(7.00%)18,070.00159,811.00(133,001.00)(248,604.00)

Earnings Before Interest, Taxes, Depreciation & Amortization (EBITDA)(15.01%)(275.04%)43.84%16.82%(57.35%)(28,277.00)(440,364.00)122,870.0026,478.00

Depreciation and Amortization0.00%0.00%0.00%0.00%0.00%0.00.00.00.0

Earnings Before Interest & Taxes (EBIT)(15.01%)(275.04%)43.84%16.82%(57.35%)(28,277.00)(440,364.00)122,870.0026,478.00

Net Interest Expense39.69%8.75%(9.09%)(15.86%)5.87%15,640.004,815.00(5,440.00)(8,630.00)

Other Expense (Income)0.00%0.00%0.00%0.00%0.00%0.00.00.00.0

Net Income Before Taxes (NIBT)(29.48%)(423.71%)37.73%16.58%(99.72%)(43,917.00)(445,179.00)128,310.0035,108.00

Income Tax Expense29.19%(11.21%)(36.05%)(12.21%)(7.57%)14,986.00(7,438.00)(21,226.00)(4,598.00)

Net Income After Taxes (NIAT)(60.32%)(1129.80%)37.48%15.92%(284.18%)(58,903.00)(437,741.00)149,536.0039,706.00

Discussion

Print

Go To Start

COMMON SIZE IS

LRH Enterprises, Inc.

Financial Analysis

Common Size Income Statements

Line Items Reflected as a Percentage of Total Revenues or Sales

20042005200620072008

Service Sales6.01%5.74%5.13%4.89%5.64%

Manufactured97.55%96.66%97.79%98.46%98.19%

Merchandise Others0.39%0.10%0.09%0.06%0.01%

Misc. Refunds-0.03%0.21%0.10%0.13%0.10%

Total Revenues or Sales100.00%100.00%100.00%10