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Forecast

SureCut Shears, Inc.


Exhibit 1: Pro Forma Income Statements by Mont
Fiscal Year Ending June 30, 1996 (dollar figures in thou
Actual,
Year Ended, 1995
June 30,
1995 July Aug. Sept. Oct.
Sales $ 30,135 $ 2,100 $ 2,700 $ 3,300 $ 4,500
Materials and labor at 60% of sale $ 18,081 $ 1,260 $ 1,620 $ 1,980 $ 2,700
Overhead (includes $130/mo depr $ 3,560 $ 300 $ 300 $ 300 $ 300
Total COGS $ 21,641 $ 1,560 $ 1,920 $ 2,280 $ 3,000
Gross profit $ 8,494 $ 540 $ 780 $ 1,020 $ 1,500
Selling & Admin. Expenses $ 3,240 $ 270 $ 270 $ 270 $ 270
Profit before Taxes $ 5,254 $ 270 $ 510 $ 750 $ 1,230
Taxes at 36% $ 1,891 $ 97 $ 184 $ 270 $ 443
Profits after Taxes $ 3,363 $ 173 $ 326 $ 480 $ 787
Dividends $ 1,495 $ - $ - $ 300 $ -
Retained Earnings $ 1,868 $ 173 $ 326 $ 180 $ 787
Cumulative Retained Earnings $ 173 $ 499 $ 679 $ 1,466

Exhibit 2: Pro Forma Balance Sheets by Months, Fisca


(dollar figures in thousands)
Actual 1995
June 30,
Assets 1995 Jul 31 Aug 31 Sep 30 Oct 31
Cash $ 2,121 $ 736 $ 736 $ 736 $ 736
Accounts Receivables (a) $ 2,084 $ 2,850 $ 3,750 $ 4,650 $ 6,150
Inventories (see below) $ 8,106 $ 8,368 $ 8,303 $ 7,878 $ 6,733
Total Current Assets $ 12,311 $ 11,954 $ 12,789 $ 13,264 $ 13,619
Net Plant $ 24,564 $ 26,059 $ 27,554 $ 27,554 $ 27,554
Total Assets $ 36,875 $ 38,013 $ 40,343 $ 40,818 $ 41,173

Liabilities & Net Worth


Bank Loans Payable (Plug) $ - $ 985 $ 2,772 $ 3,270 $ 2,395
Accounts Payable- Trade (b) $ 861 $ 744 $ 777 $ 777 $ 777
Taxes Payable (c) $ - $ 97 $ 281 $ 78 $ 521
Misc. Other $ 270 $ 270 $ 270 $ 270 $ 270
Total Current Liabilities $ 1,131 $ 2,096 $ 4,100 $ 4,395 $ 3,963
Mortgage $ 11,960 $ 11,960 $ 11,960 $ 11,960 $ 11,960
Common Stock $ 11,500 $ 11,500 $ 11,500 $ 11,500 $ 11,500
Earned Surplus $ 12,284 $ 12,457 $ 12,783 $ 12,963 $ 13,750
Total Liabs and Net Worth $ 36,875 $ 38,013 $ 40,343 $ 40,818 $ 41,173

See Notes in case exhibits


Inventory Subsidiary Data (FIFO)
1995

Jul 31 Aug 31 Sep 30 Oct 31


Raw Materials

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Forecast

Opening Balances $ 810 $ 777 $ 777 $ 777


Plus Purchases $ 744 $ 777 $ 777 $ 777
Less Transfers to Work In Progess $ 777 $ 777 $ 777 $ 777
Closing Balance $ 777 $ 777 $ 777 $ 777
Work-In-Progress
Opening Balance $ 3,110 $ 3,110 $ 3,110 $ 3,110
Plus Raw Materials Additions $ 777 $ 777 $ 777 $ 777
Plus Labor Additions $ 778 $ 778 $ 778 $ 778
Transfers to Finished Goods Inven. $ 1,555 $ 1,555 $ 1,555 $ 1,555
Closing Balance $ 3,110 $ 3,110 $ 3,110 $ 3,110
Finished Goods
Opening Balance $ 4,186 $ 4,481 $ 4,416 $ 3,991
Plus Additions from Work In Prog. $ 1,555 $ 1,555 $ 1,555 $ 1,555
Less Cost of Goods Sold $ 1,260 $ 1,620 $ 1,980 $ 2,700
Closing Balance $ 4,481 $ 4,416 $ 3,991 $ 2,846

Total Closing Inventory $ 8,368 $ 8,303 $ 7,878 $ 6,733

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Forecast

SureCut Shears, Inc.


Pro Forma Income Statements by Months
ding June 30, 1996 (dollar figures in thousands)
Pro Forma,
1996 Year ending
June 30,
Nov. Dec. Jan. Feb. March April May June 1996
$ 3,900 $ 3,300 $ 2,100 $ 2,100 $ 1,800 $ 1,500 $ 1,200 $ 1,500 $ 30,000
$ 2,340 $ 1,980 $ 1,260 $ 1,260 $ 1,080 $ 900 $ 720 $ 900 $ 18,000
$ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 300 $ 3,600
$ 2,640 $ 2,280 $ 1,560 $ 1,560 $ 1,380 $ 1,200 $ 1,020 $ 1,200 $ 21,600
$ 1,260 $ 1,020 $ 540 $ 540 $ 420 $ 300 $ 180 $ 300 $ 8,400
$ 270 $ 270 $ 270 $ 270 $ 270 $ 270 $ 270 $ 270 $ 3,240
$ 990 $ 750 $ 270 $ 270 $ 150 $ 30 $ (90) $ 30 $ 5,160
$ 356 $ 270 $ 97 $ 97 $ 54 $ 11 $ (32) $ 11 $ 1,754
$ 634 $ 480 $ 173 $ 173 $ 96 $ 19 $ (58) $ 19 $ 3,302
$ - $ 300 $ - $ - $ 300 $ - $ - $ 600 $ 1,500
$ 634 $ 180 $ 173 $ 173 $ (204) $ 19 $ (58) $ (581) $ 1,802
$ 2,100 $ 2,280 $ 2,453 $ 2,626 $ 2,422 $ 2,441 $ 2,383 $ 1,802

Forma Balance Sheets by Months, Fiscal 1991


(dollar figures in thousands)
1996

Nov 30 Dec 31 Jan 31 Feb 28 Mar 31 Apr 30 May 31 Jun 30


$ 736 $ 1,119 $ 2,594 $ 3,169 $ 2,371 $ 2,196 $ 1,721 $ 736
$ 6,150 $ 5,250 $ 3,750 $ 3,150 $ 2,850 $ 2,400 $ 1,950 $ 2,100
$ 5,948 $ 5,523 $ 5,818 $ 6,113 $ 6,588 $ 7,243 $ 8,078 $ 8,733
$ 12,834 $ 11,892 $ 12,162 $ 12,432 $ 11,809 $ 11,839 $ 11,749 $ 11,569
$ 27,554 $ 27,554 $ 27,554 $ 27,554 $ 27,554 $ 27,554 $ 27,554 $ 27,554
$ 40,388 $ 39,446 $ 39,716 $ 39,986 $ 39,363 $ 39,393 $ 39,303 $ 39,123

$ 620 $ - $ - $ - $ - $ - $ - $ 1,162
$ 777 $ 777 $ 777 $ 777 $ 777 $ 777 $ 777 $ 777
$ 877 $ 674 $ 771 $ 868 $ 449 $ 460 $ 428 $ (34)
$ 270 $ 270 $ 270 $ 270 $ 270 $ 270 $ 270 $ 270
$ 2,544 $ 1,721 $ 1,818 $ 1,915 $ 1,496 $ 1,507 $ 1,475 $ 2,175
$ 11,960 $ 11,661 $ 11,661 $ 11,661 $ 11,661 $ 11,661 $ 11,661 $ 11,362
$ 11,500 $ 11,500 $ 11,500 $ 11,500 $ 11,500 $ 11,500 $ 11,500 $ 11,500
$ 14,384 $ 14,564 $ 14,737 $ 14,910 $ 14,706 $ 14,725 $ 14,667 $ 14,086
$ 40,388 $ 39,446 $ 39,716 $ 39,986 $ 39,363 $ 39,393 $ 39,303 $ 39,123

nventory Subsidiary Data (FIFO)


1996

Nov 30 Dec 31 Jan 31 Feb 28 Mar 31 Apr 30 May 31 Jun 30

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Forecast

$ 777 $ 777 $ 777 $ 777 $ 777 $ 777 $ 777 $ 777


$ 777 $ 777 $ 777 $ 777 $ 777 $ 777 $ 777 $ 777
$ 777 $ 777 $ 777 $ 777 $ 777 $ 777 $ 777 $ 777
$ 777 $ 777 $ 777 $ 777 $ 777 $ 777 $ 777 $ 777

$ 3,110 $ 3,110 $ 3,110 $ 3,110 $ 3,110 $ 3,110 $ 3,110 $ 3,110


$ 777 $ 777 $ 777 $ 777 $ 777 $ 777 $ 777 $ 777
$ 778 $ 778 $ 778 $ 778 $ 778 $ 778 $ 778 $ 778
$ 1,555 $ 1,555 $ 1,555 $ 1,555 $ 1,555 $ 1,555 $ 1,555 $ 1,555
$ 3,110 $ 3,110 $ 3,110 $ 3,110 $ 3,110 $ 3,110 $ 3,110 $ 3,110

$ 2,846 $ 2,061 $ 1,636 $ 1,931 $ 2,226 $ 2,701 $ 3,356 $ 4,191


$ 1,555 $ 1,555 $ 1,555 $ 1,555 $ 1,555 $ 1,555 $ 1,555 $ 1,555
$ 2,340 $ 1,980 $ 1,260 $ 1,260 $ 1,080 $ 900 $ 720 $ 900
$ 2,061 $ 1,636 $ 1,931 $ 2,226 $ 2,701 $ 3,356 $ 4,191 $ 4,846

$ 5,948 $ 5,523 $ 5,818 $ 6,113 $ 6,588 $ 7,243 $ 8,078 $ 8,733

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Actual

SureCut Shears, Inc.


Exhibit 4: Actual Income Statements by Months, July 1995 - March 1996
(dollar figures in thousands)
1995
July Aug. Sept. Oct. Nov.
Sales $ 2,070 $ 2,605 $ 3,080 $ 4,066 $ 3,373
Materials and Labor $ 1,304 $ 1,641 $ 1,949 $ 2,440 $ 2,024
Overhead (a) $ 296 $ 290 $ 340 $ 310 $ 303
Total costs $ 1,600 $ 1,931 $ 2,289 $ 2,750 $ 2,327
Gross Profit $ 470 $ 674 $ 791 $ 1,316 $ 1,046
Selling and Administrative Expense $ 273 $ 273 $ 293 $ 275 $ 275
Profit before Tax $ 197 $ 401 $ 498 $ 1,041 $ 771
Taxes at 36% $ 71 $ 144 $ 179 $ 375 $ 278
Profits after Tax $ 126 $ 257 $ 319 $ 666 $ 493
Dividends $ - $ - $ 300 $ - $ -
Retained Earnings $ 126 $ 257 $ 19 $ 666 $ 493
Cumulative Retained Earnings $ 126 $ 383 $ 401 $ 1,068 $ 1,561

Notes: Feb and March. include special costs for personnel reduction

Exhibit 3: Actual Balance Sheets by Months, June 30, 1995 - March 31, 1996
(dollar figures in thousands)

1995
Assets Jun 30 Jul 31 Aug 31 Sep 30 Oct 31 Nov 30
Cash $ 2,121 $ 957 $ 573 $ 702 $ 696 $ 830
Accounts Receivables $ 2,084 $ 2,837 $ 3,644 $ 4,395 $ 5,651 $ 5,526
Inventories $ 8,106 $ 8,378 $ 8,303 $ 7,963 $ 7,179 $ 6,705
Total Current Assets $ 12,311 $ 12,172 $ 12,520 $ 13,060 $ 13,526 $ 13,061
Net Plant $ 24,564 $ 26,103 $ 27,672 $ 27,848 $ 27,858 $ 27,843
Total Assets $ 36,875 $ 38,275 $ 40,192 $ 40,908 $ 41,384 $ 40,904

Liabilites & Net Worth


Bank Loans Payable $ - $ 1,270 $ 2,759 $ 3,714 $ 3,110 $ 1,916
Accounts Payable - Trade $ 861 $ 789 $ 774 $ 843 $ 876 $ 834
Taxes Payable $ - $ 71 $ 215 $ (78) $ 296 $ 574
Misc. Other $ 270 $ 275 $ 317 $ 284 $ 290 $ 275
Total Current Liabilities $ 1,131 $ 2,405 $ 4,065 $ 4,763 $ 4,572 $ 3,599
Mortgage $ 11,960 $ 11,960 $ 11,960 $ 11,960 $ 11,960 $ 11,960
Common Stock $ 11,500 $ 11,500 $ 11,500 $ 11,500 $ 11,500 $ 11,500
Earned Surplus $ 12,284 $ 12,410 $ 12,667 $ 12,685 $ 13,352 $ 13,845
Total Liabilities & Net Worth $ 36,875 $ 38,275 $ 40,192 $ 40,908 $ 41,384 $ 40,904

Inventory Subsidiary Data (FIFO)


1990
Jul 31 Aug 31 Sep 30 Oct 31 Nov 30
Raw Materials
Opening Balances $ 810 $ 814 $ 757 $ 760 $ 793

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Actual

Plus Purchases $ 787 $ 777 $ 837 $ 867 $ 802


Less Transfers to Work In Progress $ 783 $ 834 $ 834 $ 834 $ 772
Closing Balance $ 814 $ 757 $ 760 $ 793 $ 823
Work-In-Progress
Opening Balance $ 3,110 $ 3,131 $ 3,196 $ 3,221 $ 3,224
Plus Raw Materials Additions $ 783 $ 834 $ 834 $ 834 $ 772
Plus Labor Additions $ 789 $ 789 $ 772 $ 789 $ 748
Transfers to Finished Goods Inven. $ 1,551 $ 1,558 $ 1,581 $ 1,620 $ 1,605
Closing Balance $ 3,131 $ 3,196 $ 3,221 $ 3,224 $ 3,139
Finished Goods
Opening Balance $ 4,186 $ 4,433 $ 4,350 $ 3,982 $ 3,162
Plus Additions from Work In Prog. $ 1,551 $ 1,558 $ 1,581 $ 1,620 $ 1,605
Less Cost of Goods Sold $ 1,304 $ 1,641 $ 1,949 $ 2,440 $ 2,024
Closing Balance $ 4,433 $ 4,350 $ 3,982 $ 3,162 $ 2,743

Total Closing Inventory $ 8,378 $ 8,303 $ 7,963 $ 7,179 $ 6,705

COGS as % of sales 63.0% 63.0% 63.3% 60.0% 60.0%

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Actual

1995 - March 1996

1996
Dec. Jan. Feb. Mar.
$ 2,799 $ 1,758 $ 1,738 $ 1,498
$ 1,680 $ 1,056 $ 1,095 $ 960
$ 288 $ 293 $ 374 $ 323
$ 1,968 $ 1,349 $ 1,469 $ 1,283
$ 831 $ 409 $ 269 $ 215
$ 269 $ 260 $ 258 $ 258
$ 562 $ 149 $ 11 $ (43)
$ 202 $ 54 $ 4 $ (15)
$ 360 $ 95 $ 7 $ (28)
$ 300 $ - $ - $ 300
$ 60 $ 95 $ 7 $ (328)
$ 1,621 $ 1,716 $ 1,723 $ 1,396

1995 - March 31, 1996

1996
Dec 31 Jan 31 Feb 28 Mar 31
$ 641 $ 1,133 $ 1,076 $ 688
$ 5,573 $ 3,958 $ 3,169 $ 2,867
$ 6,502 $ 6,925 $ 7,170 $ 7,374
$ 12,716 $ 12,016 $ 11,415 $ 10,929
$ 27,885 $ 27,843 $ 27,810 $ 27,812
$ 40,601 $ 39,859 $ 39,225 $ 38,741

$ 2,279 $ 1,376 $ 778 $ 1,256


$ 684 $ 699 $ 658 $ 514
$ 303 $ 357 $ 361 $ (128)
$ 269 $ 266 $ 260 $ 258
$ 3,535 $ 2,698 $ 2,057 $ 1,900
$ 11,661 $ 11,661 $ 11,661 $ 11,661
$ 11,500 $ 11,500 $ 11,500 $ 11,500
$ 13,905 $ 14,000 $ 14,007 $ 13,680
$ 40,601 $ 39,859 $ 39,225 $ 38,741

1991
Dec 31 Jan 31 Feb 28 Mar 31

$ 823 $ 778 $ 762 $ 753

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Actual

$ 688 $ 690 $ 652 $ 518


$ 733 $ 706 $ 661 $ 601
$ 778 $ 762 $ 753 $ 670

$ 3,139 $ 3,037 $ 2,953 $ 2,781


$ 733 $ 706 $ 661 $ 601
$ 789 $ 789 $ 688 $ 646
$ 1,624 $ 1,579 $ 1,521 $ 1,495
$ 3,037 $ 2,953 $ 2,781 $ 2,533

$ 2,743 $ 2,687 $ 3,210 $ 3,636


$ 1,624 $ 1,579 $ 1,521 $ 1,495
$ 1,680 $ 1,056 $ 1,095 $ 960
$ 2,687 $ 3,210 $ 3,636 $ 4,171

$ 6,502 $ 6,925 $ 7,170 $ 7,374

60.0% 60.1% 63.0% 64.1%

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