Exhibit 1:
Consolidated Balance Sheet of High Performance Corporation,
Fiscal Year Ended December 31, 1999 ($ millions)
Assets
Cash and cash equivalents
Receivables, less allowances for doubtful accounts
Inventories
Prepaid expenses and other current assets
Total current assets
Land, buildings, equipment (at cost, less depreciation)
Intangible assets
Total assets
98
126
131
77
432
486
262
1180
Liabilities and Stockholder' Equity
Notes payable
Accounts payable
Current portion of long-term debt
Other current liabilities
Current Liabilities
Long-term debt
Deferred income taxes
Other noncurrent liabilities
Total liabilities
Stockholders' equity
Preferred stock issued
Common stock issued
Retained earnings
Less common stock in treasury, at cost
Deferred compensation
Accumulated other comprehensive income (loss)
Total stockholders' equity
Total liabilities and stockholders' equity
142
125
35
222
524
185
32
190
931
7
337
495
-530
-21
-39
249
1180
Exhibit 2:
Consolidated Income Statement of High Performance
Corporation, Fiscal Year Ended December 31, 1999 ($ millions)
Sales
1904
Costs and expenses:
Cost of goods sold
SG&A
Interest, net
Unusual items
Total costs and expenses
806
801
34
2
1643
Income before taxes
261
Income taxes
83
Net income
178
Average number of common shares
108
Earnings per share of common stock, $
1.65
Exhibit 3:
Common Stock Prices of High Performance Corporation and Selected Market Data (October, 2000)
Month
May
June
July
August
September
Short and Long-Term Bond Rates
90-Day Treasury Bills
One-Year Treasury Bonds
Five-Year Treasury Bonds
Ten-Year Treasury Bonds
Thirty-Year Treasury Bonds
Ten-Year AA Corporate Bonds
Ten-Year A Corporate Bonds
(HPC)
Debt Rating (HPC)
Low
High
27.76
27.05
25.93
25.38
25.32
6.06%
6.06%
5.94%
5.90%
5.95%
7.71%
7.80%
0.7
AA
39.59
39.27
38.72
37.61
37.99
Close
37.92
37.46
36.31
35.60
36.67
Exhibit 4
Historical and Pro-Forma Performance of the Energy Bar Business, 1996 - 2005 (as of June 2000)
1996
1997
1998
1999
2000
Pro-forma
Units 1)
Sales
- Cost of Goods Sold (incl. Depreciation)
- Advertising Expense
- Selling Expenses
- General and Administrative Expenses
Earnings before Taxes
- Taxes
Net Income
1)
million
$ million
$ million
$ million
$ million
$ million
$ million
$ million
$ million
25
45.3
23.7
4.2
2.7
8.0
6.7
2.3
4.4
28.0
52.0
25.0
4.5
3.3
8.8
10.4
3.6
6.8
Unit sales do not account for potential 10% cannibalization as discussed by Mark Leiter.
31.4
59.8
29.9
5.3
3.6
9.7
11.3
4.0
7.3
35.2
68.7
36.4
6
3.6
10.7
12.0
4.2
7.8
39.4
78.8
40.4
7.1
4.4
11.8
15.1
5.3
9.8
2001
Pro-forma
43.3
88.8
43.4
8.0
4.9
12.7
19.8
6.9
12.9
2002
Pro-forma
47.6
100.0
49.0
9.0
5.5
13.7
22.8
8.0
14.8
2003
Pro-forma
51.9
111.8
54.4
10.1
6.2
14.7
26.4
9.2
17.2
2004
Pro-forma
56.1
123.8
60.4
11.1
6.8
15.6
29.9
10.5
19.4
2005
Pro-forma
60.6
137.1
66.9
12.3
7.6
16.5
33.8
11.8
22.0
Exhibit 5
HPC Financial Evaluation Form - Energy Gel Project [$ million]
Project Name:
Project Start Date:
Project Operational Date:
Energy Gel
January 2001
June 2001
Project Request Detail ($ million)
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010 10-Yr Avg
4.2
6.3
4.0
2.3
2.2
10.0
15.0
9.3
5.7
3.3
11.8
17.7
10.9
6.8
2.7
13.6
20.4
12.5
7.9
2.5
15.2
22.8
13.9
8.9
2.3
16.8
25.2
15.4
9.8
2.5
18.1
27.1
16.5
10.6
2.7
19.3
28.9
17.6
11.3
3.0
20.2
30.3
18.4
11.9
3.2
21.2
31.8
19.3
12.5
3.4
15.00
22.55
13.78
8.77
2.78
2.5
-2.4
-0.8
-1.6
-1.6
2.4
0.8
1.6
0.0
4.1
1.4
2.7
2.7
5.4
1.8
3.6
6.3
6.6
2.3
4.3
10.6
7.3
2.5
4.8
15.4
7.9
2.7
5.2
20.6
8.3
2.9
5.4
26.0
8.7
3.0
5.7
31.7
9.1
3.1
6.0
37.7
5.74
1.97
3.77
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010 10-Yr Avg
Project Costs
Less: Cumulative Depreciation
Invested Capital in Fixed Assets
Cash
Receivables
Inventories
Accounts Payable
Total Working Capital
Total Invested Capital
3.5
0.3
3.2
0.1
0.7
0.4
0.3
0.9
4.1
3.5
0.6
2.9
0.2
1.8
0.9
0.7
2.2
5.1
3.5
0.9
2.6
0.2
2.1
1.1
0.8
2.6
5.2
3.5
1.2
2.3
0.3
2.4
1.3
0.9
3.1
5.4
3.5
1.5
2.0
0.3
2.7
1.4
1.0
3.4
5.4
3.5
1.8
1.7
0.4
3.0
1.6
1.2
3.8
5.5
3.5
2.1
1.4
0.4
3.2
1.7
1.3
4.0
5.4
3.5
2.4
1.1
0.4
3.4
1.9
1.4
4.3
5.4
3.5
2.7
0.8
0.4
3.6
1.9
1.4
4.5
5.3
Payback Years from Operational Date
Total Project Cost
Number of Full Years to Pay Back
3.5
4
Land
Buildings
Machinery and Equipment
Subtotal
Less: Salvage Value
Total Project Cost
2000
0
1.5
2
3.5
0
3.5
Profit and Loss Pro-Forma
Units (million)
Sales
- Cost of Goods Sold (incl. Depreciation)
Gross Profit
- Advertising Expense
- Selling Expense
- General and Administrative Expense
- R&D and Market Research Expense
Earnings before Taxes
- Taxes (35%)
Net Income
Cumulative Net Income
Invested Capital ($ million)
Return on Invested Capital (ROIC) - 10-Year Average
Net income
Invested Capital
ROIC
Hurdle Rate
3.77
5.21
72%
15%
3.5
3.0
0.5
0.5
3.8
2.0
1.5
4.8
5.3
1.9
0.3
2.7
1.4
1.1
3.4
5.2
