Beuttenmuller 1 Investment Opportunity: Schuff Steel (“Schuff” or

Beuttenmuller 1 Investment Opportunity: Schuff Steel (“Schuff” or

Beuttenmuller 1
Investment Opportunity:
Schuff Steel (“Schuff” or “the Company”) (OTCPK: SHFK | Market Capitalization: $118.1mm | FV/2013A EBITDA:
4.8x) is a pink-sheet listed, steel fabrication contractor that operates in the southeastern and southwestern United
States. Despite operating as the largest competitor and posting extreme growth in its backlog at the end of 2013,
Schuff only trades at less than 5x 2013A EBITDA, at less than 3x 2014E EBITDA, and at slightly over book value.
SHFK Valuation as of 06/18/2014 with Return Profile
Firm Value ($ in mm)
Market Price
% Increase
Shares Outstanding
Equity Value
Less: Cash
Plus: Debt
Plus: Minority Interest
Firm Value
Current
$28.25
4.180
$118.1
(1.1)
11.8
4.3
$133.1
2013A EBITDA
FV/2013A EBITDA
$27.9
4.8x
2014E EBITDA
FV/2013A EBITDA
$46.6
2.9x
Base
$52.54
86.0%
4.180
$219.6
(1.0)
10.0
4.3
$232.9
$46.6
5.0x
Upside
$74.8
164.9%
4.180
$312.8
(1.0)
10.0
4.3
$326.1
$46.6
7.0x
Why Does This Opportunity Exist



Microcap: The stock has an equity value of $118mm and a firm value of $133mm, which eliminates all but
the smallest of institutional investors as candidates for its investor base.
Illiquidity: The daily average volume is 500 shares (~$10,000).
Annual Filings: Schuff only reports once per year.
Investment Highlights

Backlog: As a steel fabricator, Schuff operates in a backlog-driven business, and as you can see in the
chart below, revenue increases with backlog. Schuff’s EBITDA has also historically been highly correlated
its own backlog (R2=.77). Schuff’s backlog increased from $186.2mm at the end of 2012 to $426.9mm at
the end of 2013, representing a 130% increase. With that increase in backlog, I project revenue to grow
by at least 33% and EBITDA to grow by 67%.
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Beuttenmuller 2

Valuation: With the S&P trading at ~10x FV/EBITDA, SHFK currently trades at a 4.8x FV/2013A EBITDA and
slightly above book value. Relative to its own historical trading and the current market, SHFK is just plain
cheap.

ROE / ROIC: Despite operating in a cyclical industry, SHFK is a high-quality business, and over the last
fifteen years, SHFK has averaged at 28.7% ROIC and a 26.7% ROE.

Size: Only a handful of fabricators can compete for the types of projects—skyscrapers, airports and
football stadiums to name a few—that Schuff does. Schuff purchases its steel directly from mills, which
gives the Company as much as a 10% cost advantage, and raw material represent a large portion of a
given project’s cost structure. Schuff’s size also drives a higher utilization rate of its workforce because
the Company has more throughput, which in turn drives higher margins. Finally, Schuff does its own
engineering in house, further distinguishing itself from its competitors.
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Beuttenmuller 3
Investment Risks



Illiquidity: As discussed above, the shares are extremely illiquid. This opportunity is only suitable for small
funds, and even then, if a downside case materializes, any reasonably sized position will be difficult to
exit.
BP Lawsuit: BP claims that one of Schuff’s subcontracts misapplied a fireproofing material to a BP
refinery. BP has sued claiming damages of tens of millions; SHFK is one of many parties to the suit. I
expect a negotiated settlement in the single digit millions range.
Management/Ownership Change: On May 13, HC2, an entity controlled by Philip Falcone, bought the
entire Schuff family’s stake. Historically, the business had been run by the Schuffs, who owned 60% of the
Company up until last month. The purchase price was roughly $31/share, so HC2 did not pay much of a
control premium. There are a number of ways to look at this transaction: some positive, some negative.
Taking a bearish viewpoint, insider selling signals that the Schuffs did not see much upside to the current
price. Taking the bullish view, management had historically been less than fair with their minority
shareholders, as they attempted two take-unders, offering less than the market price to buy the business.
The controlling shareholder is now a sophisticated hedge fund, and minority shareholders will benefit
alongside HC2. Ultimately, my view is that investors sell for a thousand different reasons (e.g., estate
planning, retirement, divorce, etc.), but investors only buy for one reason.
Business Overview
Schuff is the largest steel fabricator in the United States, and Schuff’s main end market is non-residential
construction. The industry is regionally fragmented because steel shipping costs are high enough to eliminate any
advantage for a national player. Schuff is headquartered in Phoenix, AZ and also operates in Florida, Georgia,
Texas, Kansas, California and New York with offices and/or plants in each region. The company employs 1,600
people and has completed many impressive projects like the Cardinals Stadium, the Bronco's Stadium, Bank One
Ballpark, Sprint Arena, the Sacramento Airport, and other large projects such as hospitals, shopping centers, and
casinos. Current projects include the Brickell City Center in Miami, FL, The Source in Buena Park, CA, the Wilshire
Grand tower, San Francisco Airport Tower Control, and a variety of buildings on Stanford’s campus. Schuff
operates on a fixed price basis, and in times of oversupply, the margins can be quite weak. As you can see in the
financial overview section, margins have started come back however: smaller players went bankrupt in the last
downturn, and demand for non-residential is growing.
Other Resources
Though there is no institutional research coverage of the stock, a few other bloggers have picked up on the
opportunity:
The Variant View: http://thevariantview.com/2012/11/15/schuff-international-shfk-cheap-ugly-and-a-potentialmulti-bagger/
Oddball Stocks: http://www.oddballstocks.com/2012/10/schuff-potential-10-bagger-or-bankrupt.html
OTC Adventures: http://otcadventures.com/?p=39
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Project Shovel
Financials
Draft – Preliminary & Confidential
Income Statement
18-yr
Avg.
Revenue
Revenue Growth
(-) Cash COGS
Cash Gross Profit
Gross Margin
(-) SG&A
EBITDA
EBITDA Margin
(-) D&A
EBIT
EBIT Margin
(-) Interest Expense
(-)/(+) Other Income
(-) Non-Recurring Items
EBT
Provision for Income Tax
Implied Tax Rate
Net Income
Revenue
(/) Backlog
Revenue / Prior Year Backlog
1995A
1996A
$103.9
8.6%
COGS
(-) D&A
Cash COGS
2000A
2001A
2002A
Historical FYE 12/31
2003A
2004A
2005A
Projected
2006A
2007A
2008A
2009A
2010A
2011A
2012A
2013A
$236.8
24.7%
(188.0)
$48.8
20.6%
(24.1)
$24.7
10.4%
(3.5)
$21.2
8.9%
(11.8)
1.3
0.0
$10.7
(3.4)
31.9%
$7.3
$278.1
17.4%
(217.2)
$60.9
21.9%
(28.9)
$31.9
11.5%
(4.3)
$27.6
9.9%
(11.7)
1.1
(1.8)
$15.2
(5.5)
36.2%
$9.7
$234.1
(15.8%)
(185.7)
$48.4
20.7%
(28.4)
$20.0
8.5%
(4.0)
$15.9
6.8%
(10.9)
1.6
0.0
$6.7
(2.0)
30.6%
$4.6
$231.0
(1.3%)
(194.5)
$36.5
15.8%
(23.6)
$12.9
5.6%
(4.0)
$8.8
3.8%
(10.5)
0.9
0.7
($0.1)
0.3
526.3%
$0.2
$174.2
(24.6%)
(148.1)
$26.1
15.0%
(23.6)
$2.5
1.4%
(3.8)
($1.3)
(0.7%)
(10.1)
0.7
1.1
($9.6)
3.5
36.6%
($6.1)
$264.4
51.7%
(217.9)
$46.5
17.6%
(27.0)
$19.4
7.3%
(3.3)
$16.1
6.1%
(9.7)
0.4
0.0
$6.9
(2.1)
31.1%
$4.7
$396.8
50.1%
(323.7)
$73.1
18.4%
(34.1)
$39.1
9.8%
(3.0)
$36.1
9.1%
(9.0)
0.5
0.0
$27.6
(10.4)
37.6%
$17.2
$494.3
24.6%
(397.8)
$96.5
19.5%
(42.6)
$53.9
10.9%
(4.1)
$49.8
10.1%
(10.2)
2.9
(1.2)
$41.3
(15.5)
37.5%
$25.8
$736.2
48.9%
(577.5)
$158.7
21.6%
(55.8)
$102.8
14.0%
(4.5)
$98.3
13.4%
(7.2)
0.8
0.0
$91.9
(32.1)
34.9%
$59.9
$681.6
(7.4%)
(519.2)
$162.5
23.8%
(64.8)
$97.7
14.3%
(5.9)
$91.8
13.5%
(5.0)
0.5
0.0
$87.4
(31.0)
35.5%
$56.3
$420.9
(38.3%)
(317.9)
$103.0
24.5%
(49.9)
$53.1
12.6%
(7.5)
$45.6
10.8%
(11.1)
(0.8)
0.0
$33.7
(14.8)
43.8%
$19.0
$287.6
(31.7%)
(237.9)
$49.7
17.3%
(37.6)
$12.1
4.2%
(8.2)
$3.9
1.4%
(1.4)
0.1
0.0
$2.7
(1.4)
51.2%
$1.3
$392.2
36.4%
(340.6)
$51.6
13.2%
(38.4)
$13.2
3.4%
(8.6)
$4.6
1.2%
(1.1)
0.4
(7.1)
($3.2)
(1.8)
(55.9%)
($5.0)
$427.2
8.9%
(374.3)
$52.9
12.4%
(34.4)
$18.5
4.3%
(8.2)
$10.3
2.4%
(5.8)
0.8
0.0
$5.3
(1.7)
31.3%
$3.6
$416.1
(2.6%)
(347.7)
$68.4
16.4%
(40.6)
$27.9
6.7%
(8.3)
$19.6
4.7%
(3.7)
(0.7)
0.0
$15.2
(2.7)
17.4%
$12.6
$138.2
$56.8
2.1x
$189.9
$132.9
3.3x
$236.8
$165.4
1.8x
$278.1
$130.5
1.7x
$234.1
$161.3
1.8x
$231.0
$112.6
1.4x
$174.2
$113.3
1.5x
$264.4
$161.9
2.3x
$396.8
$216.2
2.5x
$494.3
$380.8
2.3x
$736.2
$416.6
1.9x
$681.6
$364.0
1.6x
$420.9
$220.5
1.2x
$287.6
$173.4
1.3x
$392.2
$258.8
2.3x
$427.2
$186.2
1.7x
$416.1
$426.9
2.2x
(15.7%)
134.1%
24.4%
(21.1%)
23.6%
(30.2%)
0.6%
42.9%
33.5%
76.2%
9.4%
(12.6%)
(39.4%)
(21.4%)
49.3%
(28.0%)
129.2%
1.2%
6.4%
32.2%
1.1%
8.2%
74.7%
1.4%
10.2%
55.4%
1.5%
10.4%
20.0%
1.6%
12.1%
(2.0%)
1.7%
10.2%
(16.7%)
1.8%
13.6%
0.0%
2.2%
10.2%
14.4%
1.2%
8.6%
25.9%
0.8%
8.6%
25.1%
0.8%
7.6%
31.1%
0.6%
9.5%
16.0%
0.9%
11.9%
(22.9%)
1.8%
13.1%
(24.7%)
2.8%
9.8%
2.1%
2.2%
8.1%
(10.3%)
1.9%
9.7%
17.9%
2.0%
$87.0
(1.3)
$85.7
$118.0
(1.5)
$116.4
$160.6
(2.7)
$158.0
$191.6
(3.5)
$188.0
$221.6
(4.3)
$217.2
$189.7
(4.0)
$185.7
$198.5
(4.0)
$194.5
$151.9
(3.8)
$148.1
$221.2
(3.3)
$217.9
$326.7
(3.0)
$323.7
$401.9
(4.1)
$397.8
$582.0
(4.5)
$577.5
$525.1
(5.9)
$519.2
$325.4
(7.5)
$317.9
$246.0
(8.2)
$237.9
$349.1
(8.6)
$340.6
$382.5
(8.2)
$374.3
$356.0
(8.3)
$347.7
(85.7)
$18.2
17.5%
(6.7)
$11.5
11.0%
(1.3)
$10.2
9.8%
(0.5)
0.3
0.0
$10.0
(4.0)
40.2%
$6.0
$67.3
1.9x
9.7%
14.0%
1.5%
1999A
$189.9
37.4%
(158.0)
$32.0
16.8%
(15.5)
$16.5
8.7%
(2.7)
$13.8
7.3%
(6.8)
1.7
0.0
$8.7
(3.5)
39.6%
$5.3
Growth in Backlog
SG&A as a % of Sales
SG&A Growth
D&A as a % of Revenue
1998A
$138.2
33.0%
(116.4)
$21.8
15.8%
(8.9)
$12.9
9.3%
(1.5)
$11.4
8.2%
(0.3)
0.5
0.0
$11.6
(4.3)
37.4%
$7.3
12.4%
18.3%
1997A
6.5%
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Project Shovel
Financials
Draft – Preliminary & Confidential
Cash Flow Statement
1995A
1996A
1997A
1998A
1999A
2000A
2001A
2002A
Historical FYE 12/31
2003A
2004A
2005A
Projected
2006A
2007A
2008A
2009A
2010A
2011A
2012A
2013A
Net Income
(+) D&A
(+) Stock-based Compensation
Funds from Operation
(-) Change in Working Capital
Cash Flow from Operation
$6.0
1.3
0.0
$7.2
$7.3
1.5
0.0
$8.8
(21.3)
($12.5)
$5.3
2.7
0.0
$8.0
(20.5)
($12.5)
$7.3
3.5
0.1
$10.9
(9.3)
$1.5
$9.7
4.3
0.1
$14.1
(0.3)
$13.8
$4.6
4.0
0.0
$8.7
(4.8)
$3.9
$0.2
4.0
0.1
$4.4
8.3
$12.7
($6.1)
3.8
0.0
($2.3)
6.2
$4.0
$4.7
3.3
0.0
$8.0
(10.2)
($2.1)
$17.2
3.0
0.1
$20.3
0.3
$20.6
$25.8
4.1
0.3
$30.2
(12.8)
$17.5
$59.9
4.5
0.5
$64.9
(15.9)
$49.0
$56.3
5.9
1.7
$64.0
(20.8)
$43.2
$19.0
7.5
1.7
$28.1
59.9
$88.0
$1.3
8.2
1.7
$11.2
4.4
$15.6
($5.0)
8.6
0.7
$4.3
(19.0)
($14.7)
$3.6
8.2
0.8
$12.7
19.4
$32.1
$12.6
8.3
0.5
$21.3
(2.2)
$19.1
Capital Expenditures
Cash flow from Investing
($2.3)
($3.2)
($3.2)
($2.3)
($2.3)
($7.7)
($7.7)
($8.5)
($8.5)
($4.4)
($4.4)
($1.0)
($1.0)
($1.5)
($1.5)
($1.2)
($1.2)
($7.9)
($7.9)
($5.0)
($5.0)
($9.0)
($9.0)
($25.2)
($25.2)
($18.9)
($18.9)
($10.7)
($10.7)
($3.4)
($3.4)
($4.0)
($4.0)
($10.0)
($10.0)
($15.7)
($14.8)
($6.2)
$5.3
($0.5)
$11.7
$2.5
($3.3)
$12.7
$12.5
$40.0
$18.0
$69.1
$4.9
($18.1)
$28.1
$9.1
$11.4
(4.3)
1.5
0.0
(21.3)
(3.2)
($15.9)
$13.8
(5.2)
2.7
0.0
(20.5)
(2.3)
($11.5)
$21.2
(8.0)
3.5
0.1
(9.3)
(7.7)
($0.3)
$27.6
(10.5)
4.3
0.1
(0.3)
(8.5)
$12.7
$15.9
(6.1)
4.0
0.0
(4.8)
(4.4)
$4.8
$8.8
(3.4)
4.0
0.1
8.3
(1.0)
$16.9
($1.3)
0.5
3.8
0.0
6.2
(1.5)
$7.7
$16.1
(6.1)
3.3
0.0
(10.2)
(1.2)
$2.0
$36.1
(13.7)
3.0
0.1
0.3
(7.9)
$17.9
$49.8
(18.9)
4.1
0.3
(12.8)
(5.0)
$17.5
$98.3
(37.4)
4.5
0.5
(15.9)
(9.0)
$41.1
$91.8
(34.9)
5.9
1.7
(20.8)
(25.2)
$18.5
$45.6
(17.3)
7.5
1.7
59.9
(18.9)
$78.5
$3.9
(1.5)
8.2
1.7
4.4
(10.7)
$6.0
$4.6
(1.8)
8.6
0.7
(19.0)
(3.4)
($10.2)
$10.3
(3.9)
8.2
0.8
19.4
(4.0)
$30.9
$19.6
(7.5)
8.3
0.5
(2.2)
(10.0)
$8.7
2.3%
1.2%
3.3%
3.1%
1.9%
0.4%
0.9%
0.5%
2.0%
1.0%
1.2%
3.7%
4.5%
3.7%
0.9%
0.9%
2.4%
Levered Free Cash Flow
EBIT
(-) Unlevered Taxes
(+) D&A
(+) Stock-based Compensation
(-) Change in Wokring Capital
(-) Capital Expenditures
Unlevered Free Cash Flow
Capital Expenditures as a % of Revenue
38.0%
2.2%
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Project Shovel
Financials
Draft – Preliminary & Confidential
Working Capital
1995A
1996A
1997A
1998A
1999A
2000A
2001A
2002A
Historical FYE 12/31
2003A
2004A
2005A
Projected
2006A
2007A
2008A
2009A
2010A
2011A
2012A
2013A
Receivables
Inventory
Prepaid Expenses
Other Current Assets
Total Current Assets
$20.2
1.3
0.2
2.2
$23.9
$28.7
2.4
1.2
2.1
$34.3
$59.2
6.8
1.3
2.6
$69.9
$68.1
7.6
1.4
2.7
$79.8
$71.4
11.3
0.4
0.0
$83.2
$76.3
7.2
0.5
0.0
$84.0
$78.5
4.7
0.6
3.5
$87.3
$62.1
4.4
0.7
7.5
$74.8
$65.0
21.7
1.1
11.1
$98.9
$96.1
21.8
1.4
2.7
$121.9
$126.6
28.4
1.2
0.0
$156.2
$158.8
39.3
1.4
0.0
$199.5
$149.0
53.4
1.4
0.0
$203.8
$94.8
23.9
1.3
0.0
$119.9
$93.9
26.7
1.6
0.0
$122.2
$105.0
49.1
1.5
0.0
$155.6
$93.1
23.6
1.5
13.6
$131.7
$106.8
32.4
1.4
1.5
$142.1
Accounts Payable
Accrued Exp.
Unearned Revenue
Other Current Liabilities
Total Current Liabilities
$4.0
1.7
12.1
4.7
$22.6
$5.7
1.4
3.8
0.7
$11.7
$11.4
8.3
7.0
0.0
$26.7
$10.1
8.4
8.9
0.0
$27.3
$7.3
10.4
12.7
0.0
$30.4
$7.9
9.7
8.8
0.0
$26.4
$12.7
8.9
13.5
2.9
$38.0
$11.9
8.3
8.5
2.9
$31.6
$20.8
5.2
14.6
5.1
$45.6
$26.4
13.1
29.1
0.3
$68.9
$35.8
14.6
39.8
0.2
$90.4
$47.5
19.9
49.3
1.1
$117.8
$35.9
11.7
51.4
2.4
$101.4
$18.7
13.4
43.6
1.7
$77.4
$23.8
11.4
48.3
0.6
$84.1
$57.3
16.1
24.5
0.6
$98.5
$37.9
11.6
39.6
5.0
$94.1
$49.9
10.9
38.6
2.9
$102.3
Net Working Capital
Change in Net Working Capital
$1.4
$22.7
($21.3)
$43.2
($20.5)
$52.5
($9.3)
$52.8
($0.3)
$57.6
($4.8)
$49.3
$8.3
$43.1
$6.2
$53.3
($10.2)
$53.0
$0.3
$65.7
($12.8)
$81.7
($15.9)
$102.5
($20.8)
$42.6
$59.9
$38.1
$4.4
$57.1
($19.0)
$37.6
$19.4
$39.8
($2.2)
A/R Days
96.4
Inventory Days
23.5
Prepaid Expenses as a % of Revenue
0.4%
Other Current Assets as a % of Revenue
1.1%
71.0
5.4
0.2%
2.2%
75.8
7.4
0.8%
1.5%
113.7
15.8
0.7%
1.4%
104.9
14.8
0.6%
1.1%
93.8
19.0
0.2%
0.0%
119.0
14.2
0.2%
0.0%
124.1
8.8
0.3%
1.5%
130.2
10.8
0.4%
4.3%
89.7
36.4
0.4%
4.2%
88.4
24.6
0.3%
0.7%
93.5
26.0
0.2%
0.0%
78.8
24.8
0.2%
0.0%
79.8
37.6
0.2%
0.0%
82.2
27.4
0.3%
0.0%
119.2
41.0
0.6%
0.0%
97.7
52.7
0.4%
0.0%
79.5
23.0
0.3%
3.2%
93.7
34.0
0.3%
0.4%
A/P Days
29.1
Accrued Expenses as a % of COGS 3.8%
Unearned Revenue as a % of Revenue
7.1%
Other Current Liabilities as % of COGS
0.9%
17.2
2.0%
11.6%
5.5%
18.0
1.2%
2.7%
0.6%
26.3
5.3%
3.7%
0.0%
19.5
4.5%
3.7%
0.0%
12.2
4.8%
4.6%
0.0%
15.5
5.2%
3.8%
0.0%
23.8
4.6%
5.9%
1.5%
29.4
5.6%
4.9%
2.0%
34.8
2.4%
5.5%
2.3%
29.8
4.1%
7.3%
0.1%
32.9
3.7%
8.0%
0.1%
30.0
3.5%
6.7%
0.2%
25.2
2.2%
7.5%
0.5%
21.5
4.2%
10.4%
0.5%
36.5
4.8%
16.8%
0.3%
61.4
4.7%
6.3%
0.2%
37.0
3.1%
9.3%
1.3%
52.4
3.1%
9.3%
0.8%
Downloaded from www.hvst.com by IP address 78.47.27.170 on 2016/10/27
Project Shovel
Financials
Draft – Preliminary & Confidential
Balance Sheet
1995A
1996A
1997A
1998A
1999A
2000A
2001A
2002A
Historical FYE 12/31
2003A
2004A
2005A
Projected
2006A
2007A
2008A
2009A
2010A
2011A
2012A
2013A
Cash And Equivalents
Total Receivables
Inventory
Prepaid Exp.
Deferred Tax Assets, Curr.
Restricted Cash
Other Current Assets
Total Current Assets
$7.3
20.2
1.3
0.2
0.0
0.0
2.2
$31.2
$0.2
28.7
2.4
1.2
0.0
0.0
2.1
$34.5
$15.4
59.2
6.8
1.3
0.6
0.0
2.6
$85.9
$6.8
68.1
7.6
1.4
1.4
0.0
2.7
$88.0
$11.1
71.4
11.3
0.4
1.7
0.0
0.0
$95.9
$4.6
76.3
7.2
0.5
1.7
0.0
0.0
$90.3
$10.8
78.5
4.7
0.6
2.3
0.0
3.5
$100.4
$7.6
62.1
4.4
0.7
2.7
0.0
7.5
$85.1
$6.5
65.0
21.7
1.1
1.6
0.0
11.1
$107.0
$13.7
96.1
21.8
1.4
1.1
0.0
2.7
$136.8
$13.5
126.6
28.4
1.2
0.7
0.0
0.0
$170.4
$39.0
158.8
39.3
1.4
0.7
0.1
0.0
$239.3
$40.0
149.0
53.4
1.4
1.7
0.9
0.0
$246.5
$47.6
94.8
23.9
1.3
2.8
0.0
0.0
$170.3
$48.0
93.9
26.7
1.6
1.9
0.0
0.0
$172.1
$7.6
105.0
49.1
1.5
3.3
0.0
0.0
$166.5
$8.8
93.1
23.6
1.5
1.9
0.0
13.6
$142.4
$1.1
106.8
32.4
1.4
1.7
0.0
1.5
$144.9
Net PP&E
Goodwill
Other Long-term Assets
Total Assets
$5.1
0.0
0.1
$36.4
$7.4
0.0
0.1
$42.0
$20.9
53.0
5.8
$165.6
$25.3
51.0
7.0
$171.4
$29.9
48.9
4.3
$179.0
$30.1
46.7
4.0
$171.1
$27.1
17.1
3.7
$148.3
$24.4
17.1
3.7
$130.3
$19.6
17.1
3.1
$146.9
$24.4
17.1
2.7
$181.0
$25.7
17.1
4.9
$218.1
$35.3
17.1
5.3
$297.0
$55.0
17.1
5.2
$323.8
$71.4
17.1
3.7
$262.5
$74.0
17.1
3.7
$267.0
$75.4
10.1
6.0
$258.0
$67.9
10.1
9.4
$229.8
$70.2
10.1
4.4
$229.6
Accounts Payable
Accrued Exp.
Current Portion of LT Debt
Current Income Taxes Payable
Unearned Revenue, Current
Other Current Liabilities
Total Current Liabilities
$4.0
1.7
0.1
0.0
12.1
4.7
$22.7
$5.7
1.4
0.3
0.0
3.8
0.7
$12.0
$11.4
8.3
3.8
0.0
7.0
0.0
$30.6
$10.1
8.4
5.2
0.0
8.9
0.0
$32.5
$7.3
10.4
1.2
2.2
12.7
0.0
$33.8
$7.9
9.7
0.0
0.0
8.8
0.0
$26.4
$12.7
8.9
0.1
0.0
13.5
2.9
$38.1
$11.9
8.3
0.0
0.0
8.5
2.9
$31.6
$20.8
5.2
0.0
0.0
14.6
5.1
$45.6
$26.4
13.1
0.0
4.9
29.1
0.3
$73.9
$35.8
14.6
4.4
4.1
39.8
0.2
$98.9
$47.5
19.9
3.6
7.6
49.3
1.1
$129.0
$35.9
11.7
7.4
0.0
51.4
2.4
$108.8
$18.7
13.4
3.5
0.0
43.6
1.7
$80.8
$23.8
11.4
2.0
0.0
48.3
0.6
$86.1
$57.3
16.1
26.4
3.4
24.5
0.6
$128.3
$37.9
11.6
4.9
3.7
39.6
5.0
$102.7
$49.9
10.9
2.7
0.0
38.6
2.9
$104.9
Long-Term Debt
Def. Tax Liability, Non-Curr.
Other Non-Current Liabilities
Total Liabilities
$2.8
0.0
0.3
$25.7
$4.9
0.2
0.2
$17.4
$103.9
1.6
0.4
$136.5
$101.4
2.5
0.4
$136.8
$100.2
2.3
0.4
$136.6
$95.5
2.0
2.1
$126.0
$91.2
1.9
1.7
$132.9
$87.0
1.7
0.4
$120.8
$85.0
1.6
0.3
$132.6
$74.2
1.8
0.3
$150.2
$60.7
1.5
0.3
$161.3
$48.3
2.3
0.3
$179.9
$39.3
3.7
0.3
$152.1
$10.5
5.2
0.3
$96.8
$5.6
7.0
0.2
$98.9
$29.4
7.1
0.2
$165.0
$23.5
6.1
1.7
$134.0
$9.2
6.5
0.7
$121.3
Total Common Equity
(/) Total Shares Out. on Balance Sheet Date
Book Value/Share
Release Date
Share Price One-Day after Release Date
Market Price as a % of Book Value
$10.7
$24.7
$29.1
$34.6
$42.4
$45.1
$15.5
$9.5
$14.3
$30.9
$56.8
$117.2
$171.7
$165.7
$168.0
$93.0
$95.7
$108.3
5.000
7.000
7.023
7.067
7.161
7.263
6.937
7.037
7.063
7.063
7.116
7.168
7.081
9.656
9.757
4.147
4.180
4.203
$2.1
$3.5
$4.1
$4.9
$5.9
$6.2
$2.2
$1.4
$2.0
$4.4
$8.0
$16.3
$24.2
$17.2
$17.2
$22.4
$22.9
$25.8
03/18/99 03/30/00 03/19/01 03/27/02 03/31/03 03/29/04 03/01/05 03/01/06 03/01/07 03/01/07 03/18/08 03/17/09 03/15/10 03/16/11 03/15/12 03/22/13 03/06/14 03/06/14
$6.3
$3.1
$4.6
$2.7
$1.2
$2.2
$2.5
$8.6
$20.0
$20.0
$23.0
$11.0
$19.0
$15.0
$11.0
$11.8
$19.0
$19.0
292.5%
88.7%
109.7%
54.6%
20.3%
34.6%
112.1%
632.0%
988.4%
457.6%
288.1%
67.3%
78.4%
87.4%
63.9%
52.4%
83.0%
73.7%
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Project Shovel
Financials
Draft – Preliminary & Confidential
ROIC/ROE
1995A
Working Capital
Net PP&E
Total Invested Capital
EBIT
ROIC
Book Value/Share
ROE
1996A
1997A
1998A
1999A
2000A
2001A
2002A
Historical FYE 12/31
2003A
2004A
2005A
Projected
2006A
2007A
2008A
2009A
2010A
2011A
2012A
2013A
$1.4
5.1
$6.5
$10.2
157.3%
$22.7
7.4
$30.1
$11.4
37.9%
$43.2
20.9
$64.0
$13.8
21.5%
$52.5
25.3
$77.8
$21.2
27.2%
$52.8
29.9
$82.7
$27.6
33.4%
$57.6
30.1
$87.7
$15.9
18.2%
$49.3
27.1
$76.5
$8.8
11.6%
$43.1
24.4
$67.5
($1.3)
(1.9%)
$53.3
19.6
$72.9
$16.1
22.1%
$53.0
24.4
$77.4
$36.1
46.6%
$65.7
25.7
$91.4
$49.8
54.5%
$81.7
35.3
$117.0
$98.3
84.1%
$102.5
55.0
$157.5
$91.8
58.3%
$42.6
71.4
$114.0
$45.6
40.0%
$38.1
74.0
$112.2
$3.9
3.5%
$57.1
75.4
$132.5
$4.6
3.5%
$37.6
67.9
$105.6
$10.3
9.7%
$39.8
70.2
$110.1
$19.6
17.8%
$2.1
$3.5
65.0%
$4.1
17.7%
$4.9
17.8%
$5.9
21.1%
$6.2
4.9%
$2.2
(64.1%)
$1.4
(39.3%)
$2.0
49.4%
$4.4
116.0%
$8.0
82.6%
$16.3
104.7%
$24.2
48.3%
$17.2
(29.2%)
$17.2
0.4%
$22.4
30.2%
$22.9
2.1%
$25.8
12.5%
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