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Case Exhibit 1
Operating Results: 2004 2005 2006
Revenue 291,940 307,964 342,251
Less: Cost of Goods Sold 204,265 220,234 249,794
Gross Profit 87,676 87,731 92,458
Less: Selling, General & Administrative 25,293 27,049 28,512
Operating Income 62,383 60,682 63,946
Plus: Depreciation & Amortization 6,987 8,213 9,914
EBITDA 69,370 68,895 73,860
EBIT 62,383 60,682 63,946
Plus: Other Income (expense) 15,719 16,057 13,506
Earnings Before Tax 78,101 76,738 77,451
Less: Taxes 24,989 24,303 23,821
Net Income 53,112 52,435 53,630
Dividends 18,589 22,871 28,345
Margins:
Revenue Growth 3.2% 5.5% 11.1%
Gross Margin 30.0% 28.5% 27.0%
EBIT Margin 21.4% 19.7% 18.7%
EBITDA Margin 23.8% 22.4% 21.6%
Effective Tax Rate (1) 32.0% 31.7% 30.8%
Net Income Margin 18.2% 17.0% 15.7%
Dividend payout ratio 35.0% 43.6% 52.9%
BLAINE KITCHENWARE
Case Exhibit 2
Assets: 2004 2005 2006
Cash & Cash Equivalents 67,391 70,853 66,557
Marketable Securities 218,403 196,763 164,309
Accounts Receivable 40,709 43,235 48,780
Inventory 47,262 49,728 54,874
Other Current Assets 2,586 3,871 5,157
Total Current Assets 376,351 364,449 339,678
Property, Plant & Equipm 99,402 138,546 174,321
Goodwill 8,134 20,439 38,281
Other Assets 13,331 27,394 39,973
Total Assets 497,217 550,829 592,253
Liabilities & Shareholders' Equity:
Accounts Payable 26,106 28,589 31,936
Accrued Liabilities 22,605 24,921 27,761
Taxes Payable 14,225 17,196 16,884
Total Current Liabilities 62,935 70,705 76,581
Other liabilities 1,794 3,151 4,814
Deferred Taxes 15,111 18,434 22,495
Total Liabilities 79,840 92,290 103,890
Shareholders' Equity 417,377 458,538 488,363
Total Liabilities & Shar 497,217 550,829 592,253
Exhibit 3 Selected Operating and Financial Data for Public Kitchenware Producers
Home & Hearth Design AutoTech Appliances XQL Corp. Bunkerhill, Inc. EasyLiving Systems
Revenue $589,747 $18,080,000 $4,313,300 $3,671,100 $188,955
EBIT 106,763 2,505,200 721,297 566,099 19,613
EBITDA 119,190 3,055,200 796,497 610,399 23,356
Net income $53,698 $1,416,012 $412,307 $335,073 $13,173
Cash & securities $21,495 $536,099 $21,425 $153,680 $242,102
Net working capital* 54,316 1,247,520 353,691 334,804 21,220
Net fixed assets 900,803 7,463,564 3,322,837 815,304 68,788
Total assets $976,613 $9,247,183 $3,697,952 $1,303,788 $332,110
Net debt (1) $350,798 $4,437,314 $950,802 $238,056 ($64,800)
Total debt 372,293 4,973,413 972,227 391,736 177,302
Book equity $475,377 $3,283,000 $2,109,400 $804,400 $94,919
Market capitalization 776,427 13,978,375 5,290,145 3,962,780 418,749
Enterprise value (MVIC) $1,127,226 $18,415,689 $6,240,947 $4,200,836 $353,949
Equity beta 1.03 1.24 0.96 0.92 0.67
LTM Trading Multiples
MVIC/Revenue 1.91x 1.02x 1.45x 1.14x 1.87x
MVIC/EBIT 10.56x 7.35x 8.65x 7.42x 18.05x
MVIC/EBITDA 9.46x 6.03x 7.84x 6.88x 15.15x
Market/Book equity 1.63x 4.26x 2.51x 4.93x 4.41x
Net Debt/Equity 45.18% 31.74% 17.97% 6.01% -15.47%
Net Debt/Enterprise Value 31.12% 24.10% 15.23% 5.67% -18.31%
* Net working capital excludes cash and securities
(1) Net debt is total long term and short term debt less excess cash.
Blaine Kitchenware
$342,251
63,946
73,860
$53,630
$230,866
32,231
174,321
$592,253
($230,866)
-
$488,363
959,596
$728,730
0.56
2.13x
11.40x
9.87x
1.96x
-24.06%
-31.68%
Exhibit 4 Contemporaneous Capital Market Data: April 21, 2007
Yields on US Treasury Securities
Maturity
30 days 4.55%
60 days 4.73%
90 days 4.91%
1 year 4.90%
5 years 4.91%
10 years 5.02%
20 years 5.26%
30 years 5.10%
Seasoned corporate bond yields Default spread
Moody's Aaa 5.88% 0.86%
Aa 6.04% 1.02%
A 6.35% 1.33%
Baa Err:522 Err:522
Ba 7.88% 2.86%
B 8.94% 3.92%
