Ganiu Oluwasegun Aina

© Corporate Finance Institute US$ thousands 31/Aug/17 Balance Sheet Check Actuals --> 30/Sep/17 31/Oct/17 30/Nov/17 31/Dec/17 Forecast --> 31/Jan/18 28/Feb/18 31/Mar/18 30/Apr/18 31/May/18 30/Jun/18 31/Jul/18 31/Aug/18 30/Sep/18 31/Oct/18 30/Nov/18 31/Dec/18 OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK OK - - - - - - - - - - - - - - - - -,- -,- -,- -,- -,- -,- -,- -,- -,- -,- -,- -,- -,- -,- -,- -,- Operating cost assumptions Gross margins SG&A SG&A as a percent of revenues 28.6% 9,577 23.4% 28.3% 9,687 23.6% 27.0% 9,510 21.8% 26.5% 9,482 21.4% 26.5% 9,500 23.2% 26.5% 9,500 22.1% 26.5% 9,500 22.1% 26.5% 9,500 22.1% 26.5% 9,500 21.1% 26.5% 9,500 21.1% 26.5% 9,500 21.1% 26.5% 9,500 21.1% 26.5% 9,500 20.1% 26.5% 9,500 20.1% 26.5% 9,500 20.1% 26.5% 9,500 20.1% Tax assumptions Effective tax rate 57.7% 77.5% 54.7% 55.3% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% - - - - - - - - - - - - - - - - 10.0% 100.0 10.0% 100.0 10.0% 100.0 10.0% 100.0 10.0% 100.0 10.0% 100.0 10.0% 100.0 10.0% 100.0 10.0% 100.0 10.0% 100.0 10.0% 100.0 10.0% 100.0 10.0% 100.0 10.0% 100.0 10.0% 100.0 10.0% 100.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 -% -% -% -% -% -% -% -% -% -% -% -% -% -% -% -% 0.75x 3.00x 0.75x 3.00x 0.75x 3.00x 0.75x 3.00x 0.75x 3.00x 0.75x 3.00x 0.75x 3.00x 0.75x 3.00x 0.75x 3.00x 0.75x 3.00x 0.75x 3.00x 0.75x 3.00x 0.75x 3.00x 0.75x 3.00x 0.75x 3.00x 0.75x 3.00x 40,850.7 (29,157.2) 11,693.5 41,050.0 (29,442.5) 11,607.5 43,630.2 (31,836.5) 11,793.7 44,206.5 (32,486.5) 11,720.0 41,016.7 (30,147.3) 10,869.4 43,067.5 (31,654.6) 11,412.9 43,067.5 (31,654.6) 11,412.9 43,067.5 (31,654.6) 11,412.9 45,118.3 (33,162.0) 11,956.4 45,118.3 (33,162.0) 11,956.4 45,118.3 (33,162.0) 11,956.4 45,118.3 (33,162.0) 11,956.4 47,169.2 (34,669.3) 12,499.8 47,169.2 (34,669.3) 12,499.8 47,169.2 (34,669.3) 12,499.8 47,169.2 (34,669.3) 12,499.8 Assumptions Time Periods Days in Year Days in Period Periods in Year Revenue assumption Number of stores Number of new stores Sq ft per store Sales per square foot ($/ft/yr) Working capital assumptions Receivable Days Inventory Days Payable Days Capital expenditure assumptions Depreciation rate Cost to build per square foot Financing assumptions Equity raised (repurchased) Dividends paid Term debt issued Term debt principal repayment Term debt interest rate Debt/Equity ratio covenant Debt service coverage ratio covenant Income Statement Revenues COGS Gross profit © Management Development Associates (NA) Inc. - 21317 SG&A EBITDA Depreciation EBIT Interest Income before taxes Taxes Net income (9,577.0) 2,116.5 (849.0) 1,267.5 (143.8) 1,123.8 - (9,687.0) 1,920.5 (849.0) 1,071.5 - - (9,510.3) 2,283.4 (849.0) 1,434.4 (139.0) 1,295.5 - (9,481.6) 2,238.4 (849.0) 1,389.4 (136.6) 1,252.9 - (9,500.0) 1,369.4 - - - (9,500.0) 1,912.9 (849.0) 1,063.9 - - (9,500.0) 1,912.9 (887.3) 1,025.6 - - (9,500.0) 1,912.9 (887.3) 1,025.6 - - (9,500.0) 2,456.4 (887.3) 1,569.1 (123.4) 1,445.7 - (9,500.0) 2,456.4 (925.6) 1,530.7 (121.0) 1,409.7 - (9,500.0) 2,456.4 (925.6) 1,530.7 (118.6) 1,412.1 - (9,500.0) 2,456.4 (925.6) 1,530.7 (116.2) 1,414.5 - (9,500.0) 2,999.8 (925.6) 2,074.2 (113.8) 1,960.4 (686.1) 1,274.3 (9,500.0) 2,999.8 (964.0) 2,035.9 (111.4) 1,924.5 (673.6) 1,250.9 (9,500.0) 2,999.8 (964.0) 2,035.9 (109.0) 1,926.9 (674.4) 1,252.5 (9,500.0) 2,999.8 (964.0) 2,035.9 (106.6) 1,929.3 (675.2) 1,254.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 6,350.0 6,268.8 30,106.8 42,725.6 6,008.0 6,688.8 31,480.8 44,177.6 6,014.1 7,812.0 29,640.0 43,466.1 5,220.6 10,908.0 30,744.0 46,872.6 5,989.1 9,261.8 28,202.3 43,453.2 681.6 10,766.9 32,785.1 44,233.7 2,803.6 9,724.9 29,612.4 42,140.9 3,417.6 10,049.1 30,599.5 44,066.1 (8.9) 10,188.0 31,022.5 41,201.6 957.8 10,527.6 32,056.6 43,541.9 2,676.5 10,188.0 31,022.5 43,887.0 4,021.6 10,188.0 31,022.5 45,232.1 217.5 11,006.1 33,513.7 44,737.3 2,324.6 10,651.1 32,432.6 45,408.3 3,648.7 11,006.1 33,513.7 48,168.6 5,759.0 10,651.1 32,432.6 48,842.7 63,-,897.8 62,-,500.9 61,-,940.4 60,-,497.9 59,-,229.6 63,-,761.1 62,-,781.1 61,-,819.0 65,-,667.1 64,-,081.9 63,-,501.3 62,-,920.8 66,-,100.3 65,-,807.4 64,-,603.7 63,-,313.9 Liabilities and shareholders' equity Current liabilities Trade and other payables Term loan Total liabilities 29,506.8 29,500.0 59,006.8 30,400.8 29,000.0 59,400.8 28,753.0 28,500.0 57,253.0 31,250.0 28,000.0 59,250.0 27,229.8 27,500.0 54,729.8 31,654.6 27,000.0 58,654.6 28,591.3 26,500.0 55,091.3 29,544.3 26,000.0 55,544.3 29,952.8 25,500.0 55,452.8 30,951.2 25,000.0 55,951.2 29,952.8 24,500.0 54,452.8 29,952.8 24,000.0 53,952.8 32,358.0 23,500.0 55,858.0 31,314.2 23,000.0 54,314.2 32,358.0 22,500.0 54,858.0 31,314.2 22,000.0 53,314.2 Shareholder's equity: Common stock and paid-in capital Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 7,025.0 39,866.0 46,-,897.8 7,025.0 40,075.1 47,-,500.9 7,025.0 40,662.4 47,-,940.4 7,025.0 41,222.9 48,-,497.9 7,025.0 41,474.8 48,-,229.6 7,025.0 42,081.5 49,-,761.1 7,025.0 42,664.8 49,-,781.1 7,025.0 43,249.7 50,-,819.0 7,025.0 44,189.4 51,-,667.1 7,025.0 45,105.7 52,-,081.9 7,025.0 46,023.6 53,-,501.3 7,025.0 46,943.0 53,-,920.8 7,025.0 48,217.3 55,-,100.3 7,025.0 49,468.2 56,-,807.4 7,025.0 50,720.7 57,-,603.7 7,025.0 51,974.7 58,-,313.9 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 - - - - - - - - - - - - 1,- 1,- 1,- 1,- 420.0 (1,- (1,123.2) 1,840.8 (1,- (3,096.0) (1,104.0) 2,497.0 (293.5) 1,646.2 2,541.7 (4,020.2) 1,268.5 (1,505.0) (4,582.9) 4,424.8 (207.4) 1,042.0 3,172.8 (3,063.3) 2,622.0 (324.2) -,114.0 (138.9) -,673.5 (339.6) (1,-,466.7 339.6 1,034.1 (998.4) 2,218.8 -,845.1 (818.1) (2,491.2) 2,405.3 1,295.9 355.0 1,081.1 (1,043.8) 2,607.2 (355.0) (1,081.1) 1,043.8 1,824.1 355.0 1,081.1 (1,043.8) 2,610.3 Dividends paid Balance Sheet Assets Current assets: Cash Trade and other receivables Inventories Total current assets Non-current assets Property and equipment, net Total assets Check Cash Flow Statement Cash from operating activities: Net income Depreciation Changes in working capital: Trade and other receivables Inventories Trade and other payables Cash from operating activities © Management Development Associates (NA) Inc. - 21317 Investing activities: Acquisitions of PP&E Cash from investing activities 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (4,600.0) (4,600.0) 0.0 0.0 0.0 0.0 (4,600.0) (4,600.0) 0.0 0.0 0.0 0.0 0.0 0.0 (4,600.0) (4,600.0) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 (500.0) (500.0) 0.0 0.0 (500.0) (500.0) 0.0 0.0 (500.0) (500.0) 0.0 0.0 (500.0) (500.0) 0.0 0.0 (500.0) (500.0) 0.0 0.0 (500.0) (500.0) 0.0 0.0 (500.0) (500.0) 0.0 0.0 (500.0) (500.0) 0.0 0.0 (500.0) (500.0) 0.0 0.0 (500.0) (500.0) 0.0 0.0 (500.0) (500.0) 0.0 0.0 (500.0) (500.0) 0.0 0.0 (500.0) (500.0) 0.0 0.0 (500.0) (500.0) 0.0 0.0 (500.0) (500.0) 498.0 6,350.0 6,848.0 6.1 6,008.0 6,014.1 (793.5) 6,014.1 5,220.6 768.5 5,220.6 5,989.1 (5,307.4) 5,- 2,-,803.6 614.0 2,803.6 3,417.6 (3,426.5) 3,417.6 (8.9) 966.7 (8.9) 957.8 1,-,676.5 1,345.1 2,676.5 4,021.6 (3,804.1) 4,- 2,-,324.6 1,324.1 2,324.6 3,648.7 2,110.3 3,648.7 5,759.0 101,-,875.2 101,-,875.2 101,-,875.2 101,-,875.2 101,-,875.2 101,875.2 4,-,475.2 106,-,475.2 106,-,475.2 106,475.2 4,-,075.2 111,-,075.2 111,-,075.2 111,-,075.2 111,075.2 4,-,675.2 115,-,675.2 115,-,675.2 115,-,675.2 Accumulated depreciation At start of month Current month expense At end of month 37,-,703.0 38,-,551.9 39,-,400.9 40,-,249.8 41,-,098.8 42,-,947.8 42,-,835.1 43,-,722.3 44,-,609.6 45,-,535.3 46,-,460.9 47,-,386.5 48,-,312.1 49,-,276.1 50,-,240.1 51,-,204.0 Net book value of PP&E 63,172.2 62,323.3 61,474.3 60,625.4 59,776.4 63,527.4 62,640.1 61,752.9 65,465.6 64,539.9 63,614.3 62,688.7 66,363.1 65,399.1 64,435.1 63,471.2 Debt Schedule Opening balance Issuance Repayments Closing balance 30,-,500.0 29,-,000.0 29,-,500.0 28,-,000.0 28,-,500.0 27,-,000.0 27,-,500.0 26,-,000.0 26,-,500.0 25,-,000.0 25,-,500.0 24,-,000.0 24,-,500.0 23,-,000.0 23,-,500.0 22,-,000.0 Interest payment 143.8 141.4 139.0 136.6 133.0 130.6 128.2 125.8 123.4 121.0 118.6 116.2 113.8 111.4 109.0 106.6 Total debt service 643.8 641.4 639.0 636.6 633.0 630.6 628.2 625.8 623.4 621.0 618.6 616.2 613.8 611.4 609.0 606.6 Debt/Equity ratio Debt/Eqtuiy covenant 0.63x 0.75x 0.62x 0.75x 0.60x 0.75x 0.58x 0.75x 0.57x 0.75x 0.55x 0.75x 0.53x 0.75x 0.52x 0.75x 0.50x 0.75x 0.48x 0.75x 0.46x 0.75x 0.44x 0.75x 0.43x 0.75x 0.41x 0.75x 0.39x 0.75x 0.37x 0.75x Debt service ratio Debt service ratio covenant 3.29x 3.00x 2.99x 3.00x 3.57x 3.00x 3.52x 3.00x 2.16x 3.00x 3.03x 3.00x 3.05x 3.00x 3.06x 3.00x 3.94x 3.00x 3.96x 3.00x 3.97x 3.00x 3.99x 3.00x 4.89x 3.00x 4.91x 3.00x 4.93x 3.00x 4.95x 3.00x 998.0 0.0 506.1 0.0 (293.5) 0.0 1,268.5 0.0 (207.4) (4,600.0) 2,622.0 0.0 1,114.0 0.0 1,673.5 (4,600.0) 1,466.7 0.0 2,218.8 0.0 1,845.1 0.0 1,295.9 (4,600.0) 2,607.2 0.0 1,824.1 0.0 2,610.3 0.0 Financing activities: Issuance of common stock Dividends paid Increase/(decrease) in term debt Cash flows from financing activities Increase/(decrease) in cash Cash, beginning of the month Cash, end of the month Supporting Schedules PP&E Gross cost At start of month CAPEX At end of month Summary Charts Cash Flow Summary Operating cash flow Investing cash flow © Management Development Associates (NA) Inc. - 21317 Financing cash flow Monthly cash balance Debt Service Ratio Debt service ratio Debt service ratio covenant (500.0) 6,848.0 (500.0) 6,014.1 (500.0) 5,220.6 (500.0) 5,989.1 - (500.0) 2,803.6 (500.0) 3,417.6 (500.0) (8.9) - (500.0) 2,676.5 (500.0) 4,021.6 - (500.0) 2,324.6 (500.0) 3,648.7 (500.0) 5,759.0 2.99x 3.00x 3.57x 3.00x 3.52x 3.00x 2.16x 3.00x 3.03x 3.00x 3.05x 3.00x 3.06x 3.00x 3.94x 3.00x 3.96x 3.00x 3.97x 3.00x 3.99x 3.00x 4.89x 3.00x 4.91x 3.00x 4.93x 3.00x 4.95x 3.00x Monthly Cash Flow & Cash Balance Debt Service Ratio and Covenant 8,000.0 6.00x 6,000.0 5.00x 4,000.0 4.00x 2,-x 0.0 2.00x (2,000.0) (4,000.0) 1.00x (6,000.0) 0.00x Debt service ratio Debt service ratio covenant Operating cash flow Investing cash flow Financing cash flow Monthly cash balance op capex - © Management Development Associates (NA) Inc. - 21317 accum 25000 © Management Development Associates (NA) Inc. - 21317