Teuer Furniture B Case solution

Group 4 , Section BName Roll No. Vishwas 342 Shorya Chaplot 344 Shubham Gupta 346 Tushar Johri 354 These spreadsheet exhibits relate to the case Teuer Furniture (B): Multiples Valuation, Case #KEL790. ©2014 by the Kellogg School of Management at Northwestern University. This case was prepared by Professor Mitchell A. Petersen. Teuer Furniture is a fictional company whose profile was created based on data from real industry leaders. Cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. To order copies or request permission to reproduce materials, call 800-545-7685 (or 617783-7600 outside the United States or Canada) or e-mail [email protected]. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any form or by any means—electronic, mechanical, photocopying, recording, or otherwise—without the permission of Kellogg Case Publishing. ation, Case #KEL790. se was prepared by le was created based on discussion. Cases are f effective or ineffective 800-545-7685 (or 617.edu. No part of this et, or transmitted in any wise—without the Exhibit 1-A: Bassett Furniture Industries Inc (BSET) Income Statement 12/31/2012 12/31/2011 269.7 253.2 Cost of goods sold 128.4 125.6 Selling, general, and administrative Revenue 134.8 122.0 Depreciation 0.0 0.0 R&D 0.0 0.0 -5.2 -54.8 Other expenses (income) Interest expenses (net) -0.2 0.6 12.0 59.7 -14.7 4.4 26.7 55.3 Earnings before interest and taxes 11.7 60.3 Adjusted taxes (all equity firm) -14.4 4.4 26.1 55.9 12/31/2012 12/31/2011 Income before taxes Taxes Net Income Adjusted income (all equity firm) Net income (all equity firm) Balance Sheet Assets Cash and equivalents 45.6 69.6 Accounts receivable 15.8 14.8 Inventory 57.9 45.1 Other current assets 13.3 10.7 Total current assets 132.5 140.2 Property, plant, and equipment 56.6 49.9 Goodwill and other intangibles 0.0 0.0 38.0 33.0 Other long-term assets Total long-term assets 94.7 83.0 227.2 223.2 Accounts payable 22.4 18.8 Accrued expenses Total assets Liabilities 17.4 17.7 Notes payable 0.0 0.0 Current maturities of long-term debt 0.0 0.0 12.8 15.3 52.6 51.8 3.1 3.7 Other liabilities 14.3 15.3 Common equity 157.3 152.4 227.2 223.2 Other current liabilities Total current liabilities Long-term debt and capital leases Total liabilities and shareholder's equity Financial Data 5% 15.3x Asset price/Sales 0.2 Ratios and Summary Data Sales growth Gross profit margin 6.Cash flow to assets -2.7 Enterprise value 112.2 Common shares outstanding 10.9% AP/CGS 17.4x Equity price/Net income 5.4% 50.0% Net investment 28.2 Stock price 14.4% Net profit margin 9.6% 52.9% 21.8% 5.8% Inventory/CGS 45.5% 7.3 Multiples Asset price/Cash flow assets NMF Asset price/Adjusted net income 4.9 Market value of equity 154.8x .1% 35.9% AR/sales 5. 0 0.0 9.1 23.5 4.2 -1.0 -22.4 10.6 129.3 110.5 -0.5 46.7 197.4 7.8 33.8 2.9 30.9 12/31/2010 12/31/2009 11.7 -3.1 7.1 14.8 0.2 -24.0 13.6 34.3 232.0 0.3 216.3 122.6 41.3 216.7 106.3 50.0 24.0 61.3 32.7 17.8 -2.6 -0.0 0.8 43.3 197.7 -20.0 -22.2 .12/31/2010 12/31/2009 12/31/2008 235.2 0.9 110.5 46.7 -2.8 111.0 -2.4 17.9 44.0 4.5 104.2 24.0 0.9 14.6 15.9 21.8 103.3 91.5 -0.2 31.7 288.3 -1.3 4.1 105. 1% -19.4% 14.3% .3% 11.3% 47.1.2% -0.8% 13.9% 44.8% -9.9% 34.7% 20.1% 25. 953 4277.185 .6421 328.5136 65.Firms Bassett Furniture Industries Inc (BSET) Ethan Allen Interiors Inc (ETH) Furniture Brands International Inc (FBN) Haverty Furniture Companies Inc (HVT) La-Z-Boy Incorporated (LZB) Restoration Hardware Holdings Inc (RN) Stanley Furniture Company (STLY) Tempur Sealy International Inc (TPX) Williams-Sonoma Inc (WSM) Teuer Market Cap 154.8975 801.565 1879.12 59.6568 362.671 573.3616 2735. 4% 15.8% 4.8% Net investment 32.0 65.7 Property.9 -25.5 Net Income Adjusted income (all equity firm) Net income (all equity firm) Balance Sheet Assets Inventory Other current assets 23.2% 2.8 Market value of equity 573.0 Current maturities of long-term debt 0.2 26.3 27.0 Other expenses (income) 0.0 65.9 Ratios and Summary Data Sales growth 7.4 23.1 394.9x 11.1 45.0 Accounts receivable 14.4 -27.0 3.2 25.9% 43.0 0.2 6/30/2012 6/30/2011 6/30/2010 6/30/2009 Cash and equivalents 88.9 644.5 Total liabilities and shareholder's equity Financial Data Cash flow to assets 27.0 0.9 Selling.0 199.1 8.1 Other long-term assets 21.8 -81.2 Revenue Depreciation Income before taxes Taxes -8.4 203.7 134.7 31.6 394.0% 2.9 -11.1 Gross profit margin Inventory/CGS Multiples Asset price/Cash flow assets 23.0 0.9 15.2 282.5 15.2 16.0 296.7x Asset price/Sales Equity price/Net income 0.8 21.5x .5 5.6 7.4 20.0 0.9 35.1 Total long-term assets 362.4 41.3 980.0 359.3 -44.7 281.3% -7. and equipment 295.7 151. plant.5 -28.1% 8.5 309.8 268.2% 53.6 31.6 R&D 0.5 Accounts payable 27.1 674.7 112.0x Asset price/Adjusted net income 10.6 145.0 156.0 590.7 251.5% 51.1 13.0% 43.9% 45.8 628.9 25. general.5% -7.8 326.8 372.5% -31.0 0.4 25.5 259.1 45.7% 6.6 Goodwill and other intangibles 45.3 631.1 Total current assets Liabilities Other current liabilities Total current liabilities Long-term debt and capital leases Other liabilities 17.5 -2.0 17.5% 51.5 154.3 58.0 0.6 29.8% AR/sales 2.9% AP/CGS 8.5% 47.7 262.7 333.9 53.4 679.6 20.0 Cost of goods sold 339.1 154.8 27.3 165.5% Net profit margin 6.0 0.3 0.1 155.7 91.2 Accrued expenses 58.7 646.3 -52.0 22.4 -18.0 Interest expenses (net) 8.5 49.5 18.7 Stock price 19.7 -47.1% -12.1 Enterprise value 638.8 Adjusted taxes (all equity firm) -10.5 Notes payable 0.9% 1.7 258.2% 7.5 305.0 24.8 646.9 Common shares outstanding 28.0 28.2 19.4 84.3 631. and administrative 322.0 0.7 294.0 Common equity 321.3% 47.8 628.0 0.6 52.9 305.5 59.9 0.1 45.8 Total assets 644.7 29.7 Earnings before interest and taxes 49.5 62.0 65.1 329.Exhibit 1-B: Ethan Allen Interiors Inc (ETH) Income Statement 6/30/2012 6/30/2011 6/30/2010 6/30/2009 6/30/2008 729.7 141.7 -72.2 -3.8 29. 1 77.8 132.4 614.3 -43.1 Selling. and administrative 252.2 371.0 Other current liabilities 0.8 -40.7 108.0 Other liabilities 286.4 614.8 5.3 9.4 115.8 Earnings before interest and taxes -43.4 12/29/2012 12/31/2011 11.0 172. general.6 20.1 Common equity 54.0 -46.0 16.3 837.8 Goodwill and other intangibles 76.3 618.3 266.3 1107.9 18.0 Inventory 244.6 -41.6 85. plant.2 11.5 Total assets 618.9 21.5 Revenue Depreciation R&D Other expenses (income) Interest expenses (net) Income before taxes Taxes Net Income Adjusted income (all equity firm) Net income (all equity firm) Balance Sheet Assets Cash and equivalents Other current assets Total current assets Liabilities Total current liabilities Total liabilities and shareholder's equity Financial Data Cash flow to assets Stock price -5.0 0.9 25.9 0.5 393.6 -2.4 Accounts receivable 125.0 Adjusted taxes (all equity firm) -1.3 228.0 0.5 Accounts payable 113.0 0.6 -1.7 Cost of goods sold 827.2 243.0 Current maturities of long-term debt 0.7 50.0 Property.6 Accrued expenses 58.2 Long-term debt and capital leases 105.8 -2.0 77.6 -49.0 0.Exhibit 1-C: Furniture Brands International Inc (FBN) Income Statement 12/29/2012 12/31/2011 1072.8 270.7 3.5 Other long-term assets 45.2 Total long-term assets 225.8 7.3 139.4 .6 Notes payable 0.7 53.4 -43.8 -47. and equipment 103. 3% AP/CGS 13.5% 27.5% Gross profit margin 22.4% Net profit margin -4.8% 24.1x Equity Price/Net income NMF .9% AR/sales 11.0 59.2% Net investment (36.Common shares outstanding Market value of equity Enterprise value 8.2% -4.7% 9.7% Inventory/CGS 29.7% 10.8 Ratios and Summary Data Sales growth -3.4% -3.0) Multiples Asset Price/Cash flow assets NMF Asset price/Adjusted net income NMF Asset Price/Sales 0.7 152. 8 -171.9 134.2 285.4 758.4 12/31/2010 12/31/2009 52.0 0.8 -39.7 226.4 249.8 676.5 87.0 -108.0 78.6 37.7 -36.2 75.2 986.0 83.8 77.7 -44.1 11.7 0.0 254.4 -105.0 141.3 -47.9 83.0 0.2 322.4 676.0 16.5 879.4 86.5 249.0 17.5 184.7 124.3 -65.0 0.0 0.6 259.3 427.8 23.6 262.9 0.8 3.9 20.1 176.4 503.5 -8.4 758.4 1744.8 61.2 9.2 5.1 -8.6 32.5 65.9 -67.9 -176.12/31/2010 12/31/2009 12/31/2008 1159.0 198.9 1224.0 0.1 .9 114.1 79.8 240. 4% 22.8% 24.4% -8.1% 8.3% -29.9% 9.-5.9% 9.5% -3.5% .1% 28.9% 15.2% 19. 9 93.9 12/31/2012 12/31/2011 53.2 207.2 Accrued expenses 11.3 .4 621.2 0.1 Accounts payable 28.8 11.5 Adjusted income (all equity firm) Earnings before interest and taxes 24.8 19.3 Adjusted taxes (all equity firm) 8.6 -10.1 Total long-term assets 222.6 15.Exhibit 1-D: Haverty Furniture Companies Inc (HVT) Income Statement 12/31/2012 12/31/2011 670.2 21.7 193.1 385.4 Total assets 402.9 72.5 12.5 Inventory 96.8 Common equity 259.4 18.2 0.4 262.3 37.8 -12. and administrative 309.0 0.6 49.4 18.1 Total liabilities and shareholder's equity Financial Data Cash flow to assets 16. and equipment Goodwill and other intangibles 0. general.7 402.4 89.7 22.4 Cost of goods sold 318.6 297.6 9.6 0. plant.2 Selling.0 Other long-term assets Liabilities Notes payable Current maturities of long-term debt Other current liabilities Total current liabilities Long-term debt and capital leases 0.0 0.9 14.1 179.1 5.2 Stock price 16.3 Other liabilities 34.9 15.1 385.7 11.0 0.0 29.9 179.9 177.1 28.3 Net income (all equity firm) Balance Sheet Assets Cash and equivalents Accounts receivable Total current assets Property.7 Other current assets 19.0 300.7 Revenue Depreciation R&D Other expenses (income) Interest expenses (net) Income before taxes Taxes Net Income 23.8 49.0 0.6 8.9 0.5 4.0 39.8 -0.0 -0.3 17. 1% Net investment (0.9) Inventory/CGS Multiples Asset Price/Cash flow assets 20.3x .9% 7.5% 31.3 Market value of equity 362.2% 2.7 Ratios and Summary Data Sales growth Gross profit margin 7.9 Enterprise value 328.5% AR/sales 1.4% 1.5x 24.8% 30.3x Asset price/Adjusted net income 21.9% 0.2% AP/CGS 8.6% 51.7% Net profit margin 2.5x Asset Price/Sales Equity Price/Net income 0.Common shares outstanding 22.2% 52. 2 244.3 91.6 282.0 -1.2 0.1 44.0 0.4 0.9 168.4 292.2 193.2 360.6 21.3 13.3 -1.8 37.1 253.9 38.4 0.6 370.2 192.1 19.2 360.9 19.12/31/2010 12/31/2009 12/31/2008 620.5 13.9 .5 0.8 295.2 8.0 0.0 17.9 18.0 0.0 -3.2 16.9 93.1 31.8 70.0 0.7 16.6 71.4 8.2 9.2 -1.2 -3.2 15.3 691.7 -5.2 176.0 9.8 15.6 0.4 30.5 -4.3 588.4 0.6 370.4 -4.6 12/31/2010 12/31/2009 58.6 6.5 176.1 301.3 0.8 0.8 8.3 175.4 20. 6% 30.4% 51.5.0% 6.5% -14.7% 2.4% -0.2% 2.9% 51.0% 6.9% 1.8% .5% 33. 3 .8 832.4 2.9 17.7 18.6 88.1 1.8 132.7 23.2 Total assets 685.7 299.4 120.3 0.5 Accrued expenses 44.5 Stock price 15.5 9. and equipment Goodwill and other intangibles 3.6 2.9 29.0 8.1 Cost of goods sold 851.6 Taxes Net Income Adjusted income (all equity firm) Net income (all equity firm) Balance Sheet Assets Other current assets Total current assets Property.3 Adjusted taxes (all equity firm) -22.5 24.3 Inventory 143.2 161.7 593.4 Earnings before interest and taxes 68.2 114.3 685.1 70.1 46.4 115.3 Revenue Depreciation R&D Other expenses (income) Interest expenses (net) Income before taxes 66.6 17.9 26.0 -18.4 0.0 0.7 593.4 36.0 0.1 Common equity 441.4 90.3 37.8 Selling.0 Other long-term assets Liabilities Notes payable Current maturities of long-term debt Other current liabilities Total current liabilities Long-term debt and capital leases 1.2 500.5 Accounts payable 56.2 28.1 68.0 -22.8 5.0 3.0 149.7 1187.9 Other liabilities 86.9 4/28/2012 4/30/2011 Cash and equivalents 152.6 49.5 Total long-term assets 185. general.1 7. and administrative 306.4 Total liabilities and shareholder's equity Financial Data Cash flow to assets 72.4 40.9 361.7 161.8 138.Exhibit 1-E: La-Z-Boy Incorporated (LZB) Income Statement 4/28/2012 4/30/2011 1231.9 37.3 Accounts receivable 167. plant.0 432. 9% Net investment 18.8% 29.2 Gross profit margin Net profit margin Multiples Asset price/Cash flow assets 9.2 Market value of equity 801.3x Asset price/Sales 0.1x Asset price/Adjusted net income 7.2% 1.5x Equity price/Net income 9.Common shares outstanding 52.4 Enterprise value 658.8% 0.0x .7% 30.6% AP/CGS 6.6% 5.8% 7.6% Inventory/CGS 16.5% AR/sales 13.6% 13.9% 16.8 Ratios and Summary Data Sales growth 3. 1 8.8 -2.0 0.8 0.2 -114.8 138.8 552.2 23.7 75.9 52.4 4/24/2010 4/25/2009 108.0 147.0 1.4 36.1 -121.4 180.3 32.7 24.2 3.9 150.5 887.0 12.9 804.8 305.7 39.1 165.0 46.2 1226.7 -97.4 13.7 204.2 21.7 41.5 408.0 5.5 .7 607.8 552.9 34.6 3.7 427.2 24.6 51.8 51.1 0.1 38.1 3.5 54.3 126.9 307.7 0.0 0.5 140.1 347.8 607.7 68.7 25.1 73.0 147.7 -91.7 1450.0 -5.3 47.6 44.5 22.9 132.6 339.4/24/2010 4/25/2009 4/25/2008 1179. -3.7% .6% 2.5% 15.1% 16.9% -15.8% 6.8% 4.7% -9.8% 27.5% 31.0% 12.9% 14. 7 Accounts receivable Total current assets 492.Exhibit 1-F: Restoration Hardware Holdings Inc (RN) Income Statement 2/2/2013 1/28/2012 1193.0 Current maturities of long-term debt 2.6 5.7 175.4 162.4 8.6 586.0 1.8 5.7 58.1 1.3 245.3 Total long-term assets 296.1 Common equity 451.0 56.9 Property.1 Cost of goods sold 756.1 52.9 263.5 789.0 0. general.8 21.6 Earnings before interest and taxes -69.6 586.8 Total liabilities and shareholder's equity Financial Data .7 Selling.9 4.3 Other liabilities 34.0 R&D 0.6 250.1 71.3 Notes payable 0. and administrative 390.0 26.8 Adjusted taxes (all equity firm) -57.4 -11.8 Accounts payable 81.7 5.8 25.5 17.0 Long-term debt and capital leases 84.1 -74.6 47.9 Depreciation 0.2 Other current liabilities Total current liabilities 219.5 52.0 11.4 Accrued expenses Other long-term assets Liabilities 63.0 115.0 0.6 601. plant.8 20.9 Total assets 789.8 322.6 Goodwill and other intangibles 172.1 122.7 -62.8 Inventory 353.0 958.1 -12.5 2/2/2013 1/28/2012 Revenue Other expenses (income) Interest expenses (net) Income before taxes Taxes Net Income Adjusted income (all equity firm) Net income (all equity firm) Balance Sheet Assets Cash and equivalents 8.0 0.1 12.4 327. and equipment 111.4 83.9 Other current assets 114.2 1. 1% 2.2 Ratios and Summary Data Sales growth 24.8 Stock price 70.0% Gross profit margin (revenue-CGS)/Revenue 36.Cash flow to assets -173.3 Common shares outstanding 38.9 AR/sales Multiples Asset Price/Cash flow assets NMF Asset price/Adjusted net income NMF Asset Price/Sales 2.7% 40.6% 37.2% Inventory/CGS 46.5% 24.9% Net investment 161.9 Market value of equity 2735.2% 1.8% 7.5 Enterprise value 2814.4x Equity Price/Net income NMF .4% 1.9% AP/CGS 10.2% net profit margin (net profit/revenue) -1. 8 57.6 -3.5 1.9 0.8 0.5 51.5 4.0 0.0 0.0 0.9 36.7 -0.0 431.0 423.1 -28.4 246.4 47.6 185.2 -6.8 244.0 2.3 37.6 -25.4 149.4 18.8 0.8 221.3 2.5 206.4 1.8 215.1 274.4 13.5 129.2 -25.0 502.5 3.0 2.5 76.4 -3.4 -7.0 0.0 0.5 257.4 -29.3 499.4 -0.5 1/29/2011 1/30/2010 13.5 .7 288.0 39.5 182.0 431.2 3.1 502.1 -10.2 111.0 20.7 117.2 178.8 238.5 62.1/29/2011 1/30/2010 1/30/2010 772.2 4.6 30.4 44.6 35.8 625. 2% 10.4% -0.9% -4.23.4% 32.3% 11.1% .7% 41.0% 35.4% 35.6% 0.5% 117.6% 0. 1 5.9 16.7 80.0 0.6 18.1 6.6 R&D 0.3 Inventory 35.2 6.7 -2.0 -39.7 4.0 0.1 31.6 Total liabilities and shareholder's equity Financial Data Cash flow to assets Stock price 22.2 Selling. general.7 80.9 15.Exhibit 1-G: Stanley Furniture Company (STLY) Income Statement 12/31/2012 12/31/2011 98.5 87.5 Notes payable 0.0 14.6 Depreciation 1.0 0.0 Other current liabilities 0.0 -4.0 110.0 0.6 Goodwill and other intangibles 0. and equipment 19.4 -5.1 2.7 Accounts receivable 10.7 0.5 0.7 Adjusted taxes (all equity firm) 0.1 110.0 32.3 2.0 Current maturities of long-term debt 0.0 Revenue Other expenses (income) Interest expenses (net) Income before taxes Taxes Net Income Adjusted income (all equity firm) Net income (all equity firm) Balance Sheet Assets Other current assets Total current assets Total long-term assets Total assets Liabilities Total current liabilities Long-term debt and capital leases Other liabilities 8.8 1.7 10.5 17. and administrative 16.7 12/31/2012 12/31/2011 Cash and equivalents 35.9 92.0 Accrued expenses 6.7 0.1 Common equity 87.7 0.0 0.0 -5.0 10.5 Property.0 0.0 30.9 17.6 Cost of goods sold 85.3 31.5 .6 Accounts payable 8.0 0.6 7.0 Earnings before interest and taxes 33.2 62.4 -2.5 23.6 104. plant.0 Other long-term assets 3.2 57. 8% -4.2% 9.9% 11.Common shares outstanding 14.9% Net profit margin 30.6 Market value of equity 65.3x Equity price/Net income 2.3x Asset price/Adjusted net income 0.6 Ratios and Summary Data Sales growth -5.0 Multiples Asset price/Cash flow assets 1.7% AP/CGS 10.2x .6 Enterprise value 29.8% -23.6% Gross profit margin 12.8% Inventory/CGS 40.8% AR/sales 10.8% Net investment 10.1% 10.9x Asset price/Sales 0.8% 33. 4 .2 0.0 160.2 25.3 0.7 9.4 150.2 20.0 109.5 -9.5 226.5 41.5 16.0 0.4 40.0 9.1 11.0 -7.0 0.8 92.7 37.9 -40.4 0.2 -15.9 61.5 9.5 12/31/2010 12/31/2009 25.4 -3.8 13.6 16.0 19.9 88.4 1.0 0.9 88.4 0.0 0.2 6.4 150.7 -5.8 -11.3 72.7 -44.7 9.5 3.0 26.5 -9.4 7.5 153.7 -47.9 8.0 2.4 -43.7 11.1 0.1 -4.0 31.8 22.0 7.12/31/2010 12/31/2009 12/31/2008 137.4 6.1 158.6 7.5 3.8 -19.4 8.2 22.4 0. 8% 23.0% -7.0% 7.8% 1.3% 10.2% -11.3% .1% -32.6% -29.5% 6.-14.8% 16.1% 13. 0 R&D 15.0 51.6 227.0 Other liabilities 53.8 833.5 Goodwill and other intangibles 279.1 186.3 674. and equipment 186.Exhibit 1-H: Tempur Sealy International Inc (TPX) Income Statement 12/31/2012 12/31/2011 1402.8 Property.8 219.8 Selling.3 111.6 54.0 0.0 160.2 Other current liabilities Total current liabilities Long-term debt and capital leases Total liabilities and shareholder's equity Financial Data Cash flow to assets 88.9 229.6 9.3 0. general.5 Stock price 31.6 12/31/2012 12/31/2011 Cash and equivalents 554.1 Accounts payable 85.9 Cost of goods sold 688.4 Inventory 93.6 1025.7 115.7 341.7 30.7 Depreciation 42.2 279.8 69.6 0.2 167.9 458.2 18.4 Accounts receivable 129.8 1325.7 18.8 11.0 340.9 Accrued expenses 84. and administrative 408.6 Earnings before interest and taxes 248.3 52. plant.0 Revenue Other expenses (income) Interest expenses (net) Income before taxes Taxes Net Income Adjusted income (all equity firm) Net income (all equity firm) Balance Sheet Assets Total current assets Other long-term assets Total long-term assets Total assets Liabilities Notes payable Current maturities of long-term debt 0.6 379.8 26.4 108.1 491.2 Other current assets 56.5 .0 585.3 Adjusted taxes (all equity firm) 132.8 106.4 112.0 91.2 328.5 34.9 1417.0 16.5 838.9 0.4 1325.0 0.1 45.5 838.4 122.8 Common equity 60.8 142. 7x 17.5% 13.5% AP/CGS 12.0 Enterprise value 2350.9% 52.Common shares outstanding 59.4% Net profit margin 7.3% 10.4% Net investment 27.5% 10.6x .7 Market value of equity 1880.3x Asset price/Sales Equity price/Net income 1.6% 15.1% 28.5% AR/sales 9.6x Asset price/Adjusted net income 20.0% Inventory/CGS 13.3% Gross profit margin 50.1 Multiples Asset price/Cash flow assets 26.7 Ratios and Summary Data Sales growth -1. 7 32.1 3.5 434.0 437.0 159.5 0.8 60.9 167.4 716.7 37.5 17.4 78.1 126.7 43.5 281.5 209.0 643.4 831.3 81.7 7.3 230.0 40.6 105.0 0.0 297.6 14.8 444.6 44.0 245.0 96.8 550.0 37.0 0.3 716.8 172.4 31.2 258.3 47.1 208.9 128.3 146.9 57.6 69.4 0.5 258.0 0.12/31/2010 12/31/2009 12/31/2008 1105.0 115.5 12/31/2010 12/31/2009 53.0 172.5 3.2 136.5 -0.4 14.2 927.5 407.4 .0 643.5 36.0 73.2 85.4 48.7 271.4 48.2 7.0 157.4 145.0 0. 2% 8.2% 47.4% 50.7% 13.9% .33.5% 12.0% -10.2% 10.8% 10.7% 12.4% 14.2% 10. 7 Adjusted taxes (all equity firm) 152.5 Interest expenses (net) -0.5 130.5 2187.6 0.9 256.0 43.1 134.9 940.9 Cost of goods sold 2450.8 275.9 784.8 -0.0 0.8 0.0 7.0 Selling.8 .8 153.8 63.5 Other liabilities 217.7 2060.0 0.0 553.7 2060.9 657.8 Accounts payable 259.5 Other current assets 189. and equipment Goodwill and other intangibles 0.2 144. plant.8 870.8 Total liabilities and shareholder's equity Financial Data Cash flow to assets Stock price 126.6 239.0 0.Exhibit 1-I: Williams-Sonoma Inc (WSM) Income Statement 2/3/2013 1/29/2012 4042. general.9 49.0 58.3 Accrued expenses 120.0 Inventory 640.4 2261.9 3720.2 1316.2 381.3 Common equity 1309.1 1255.0 Other expenses (income) 13.9 256.7 1.2 174.7 Revenue Depreciation R&D Income before taxes Taxes Net Income Adjusted income (all equity firm) Net income (all equity firm) Balance Sheet Assets Cash and equivalents Accounts receivable Total current assets Property.2 236.1 410.8 3.6 111.6 502.9 2/3/2013 1/29/2012 424.0 381.9 144.8 5.7 236.9 Earnings before interest and taxes 409.0 46.7 228.2 218.4 812.0 Other long-term assets Total long-term assets Total assets Liabilities Notes payable Current maturities of long-term debt Other current liabilities Total current liabilities Long-term debt and capital leases 1.0 734. and administrative 1035.1 571.3 2187.8 1276. 1% 24.0x 16.7x .7% Net investment 130.6 Enterprise value 3858.1x Asset price/Sales Equity price/Net income 1.6% 1.2% Net profit margin 6.2% Inventory/CGS 26.7 Market value of equity 4277.6x Asset price/Adjusted net income 15.7% 6.3 Multiples Asset price/Cash flow assets 30.6% 9.2% 39.4% AR/sales 1.6 Ratios and Summary Data Sales growth Gross profit margin 8.5% AP/CGS 10.4% 6.Common shares outstanding 97.4% 39. 7 563.6 259.2 730.4 466.0 0.3 797.5 32.3 1999.0 17.5 1.7 2079.7 2079.6 1180.2 513.7 254.4 121.1 8.1 295.1 164.6 69.8 265.6 44.4 1258.0 2131.2 3102.0 0.0 53.5 888.4 78.0 1.7 2130.4 513.8 200.3 200.5 7.5 323.1 120.7 0.6 2131.3 122.4 107.1 144.8 42.3 1/30/2011 1/31/2010 628.7 123.2 .7 3364.6 151.9 1347.0 0.2 77.2 228.0 43.0 188.2 899.9 611.9 784.9 1211.3 155.6 829.4 323.7 0.4 1.8 0.9 41.2 122.1/30/2011 1/31/2010 1/31/2009 3504.0 0. 3% 10.12.5% 1.2% 35.8% 39.4% 24.2% 1.7% 9.6% 5.4% .9% -7.1% 23.7% 2. 0 Earnings before interest and taxes 36.1 Cost of goods sold 62.4 Inventory 33.0 0.0 Total assets Liabilities Total current liabilities 13.5 Notes payable 0.9 3.0 11.0 Common equity 72.7 20.1 85.0 0.Exhibit 2: Teuer Furniture Income Statement 12/31/2012 12/31/2011 148.7 Interest expenses (net) 0.0 0. plant.0 0.4 63.1 33.5 74.4 21.0 0.0 Current maturities of long-term debt 0.0 55.3 85.0 Total long-term assets 3.9 3.1 Goodwill and other intangibles 0.5 Long-term debt and capital leases 0.5 74.6 Property.0 12/31/2012 12/31/2011 Income before taxes Taxes Net Income Adjusted income (all equity firm) Net income (all equity firm) Balance Sheet Assets 0.0 Other long-term assets 0.0 Other current assets Total current assets 81.2 0.0 0.0 Other expenses (income) 7.7 20.5 Selling.7 1.8 Total liabilities and shareholder's equity Financial Data .0 Other liabilities 0.8 Accounts payable 11.2 42.3 36.7 Depreciation 1.4 21.0 Accounts receivable Cash and equivalents 48. and administrative Revenue 41.0 Accrued expenses 1. general.5 1.4 Adjusted taxes (all equity firm) 14.8 R&D 0.4 13.0 0.4 13.4 10.0 0. and equipment 3.0 0.0 0.4 14.4 6.5 71.0 36.0 Other current liabilities 0.2 134.0 0.3 29.1 33. 0x Asset Price/Sales 0.0x Equity Price/Net income 0.0x Asset price/Adjusted net income 0.6% Net profit margin 14.8% 52.5 Stock price Common shares outstanding 9.9 Market value of equity 0.6% 14.1 Multiples Asset Price/Cash flow assets 0.0x .5% 20.Cash flow to assets 12.2% 58.0 Enterprise value 0.0% Net investment 9.3% Gross profit margin 58.5% 31.3% 18.9% AR/sales 32.6% Inventory/CGS 53.7% AP/CGS 18.0 Ratios and Summary Data Sales growth 10. 2 8.5 9.1 67.6 2.1 26.3 32.2 6.5 13.5 29.8 24.7 79.0 0.2 49.9 3.5 90.3 59.3 1.1 47.2 8.0 0.9 0.0 0.0 0.6 12/31/2010 12/31/2009 0.6 5.6 22.3 59.0 0.8 49.0 0.6 67.0 0.8 5.6 29.12/31/2010 12/31/2009 12/31/2008 111.0 .0 2.0 9.3 5.4 1.0 56.1 8.5 13.0 10.0 36.0 0.0 0.9 0.3 5.0 0.0 3.5 0.0 63.8 5.2 0.0 5.1 0.0 0.0 22.4 53.2 0.0 0.0 0.0 0.9 0.4 0.0 0.2 6. 6% 52.8% 12.6% 18.5% .5% 56.0% 54.6% 17.2% 32.9% 14.9% 32.22.0% 6.0% 47. 51 65.Manufacturing Geographical Presence Yes USA Yes International Yes International No NA Yes USA.90 801. Canada No USA.12 59. Canada Yes USA Yes International No International No USA 154.66 362.Exhibit: Comparable Firm Characteristics Firm Characteristic BSET ETH FBN HVT LZB RN STLY TPX WSM Teuer Business. .00 Market Cap Based on the above parameters. RN and WSM have been chosen.95 4277. HVT.36 2735.64 307.67 573.57 1879. 65 148.12 395.94 141.24 395.63 25.03 72.49 464.95 18.46 349.24 383.95 21.36 15.47 2.44 30.49 187.06 0.27 0.49 318.36 15.51 21.47 0.Exhibit: Multiples of Comparable Firms Multiples BSET ETH FBN HVT LZB RN STLY TPX WSM Mean Median High Low Asset price/Cash flow assets 20.05 Average Equity Equity Value : 301 ±10% 10% is taken based on the Industry standards 399.49 NMF 2.27 18.26 NMF 30.62 253.92 Proposed EV 318.44 25.37 326.26 Asset price/Adjusted net income Asset price/Sales 21.27 1.55 285.68 300.06 217.22 21.63 20.65 13.36 Teuer Furniture CFA Adjusted Net Income Sales Net Income Net Debt 12.23 301 .06 0.