Financial Analysis & Valuation - Spyder Active Sports—2004

Spyder Active Sports, Inc. is a manufacturer of high-performance ski apparel that is owned and managed by its founder
David Jacobs. His two sons, Jake and Bill, also work at the company. In 1997, Jacobs sold a minority stake in the
company to CHB Capital Partners, a private equity firm that specializes in working with the existing owner-managers of
the companies it invests in. By 2004, CHB is seeking a liquidity event, and Jacobs is considering alternative types of
equity transactions that would allow him to harvest wealth, including a “trade sale” to another apparel company and the
sale of a large block of stock to another private equity firm.
Spyder Ownership Structure in 2004
Owner: % of equity owned
CHB Capital 37.90%
David Jacobs 25.40%
Tsunehisa Shimokuba 25.40%
Jake Jacobs & Other Employees 11.30%
Total 100.00%

Notes for Spyder Case:

Before calculating forecasted free cash flow for the planning period see exhibit 5 of the case for Capital Expenditures and Net Working Capital.
You do not need to calculate these figures, they are given.
Tax rate could not be determined from the income statement. It ranges from 16% to 45%.
Since Spyder has international operations and those foreign tax rates weren't mentioned, it is acceptable
to assume an average tax rate based on the data provided or a corporate tax rate assumption is also fine.
There is no statement of cash flow provided. Depreciation & Amortization is only given in the income statement.
It's acceptable to use the D&A from the income statement in this case.
Working Capital.
Exhibit 5 Spyder Consolidated Income Statement and Cash Flow Adjustments—Historical and Forecasted (in $ thousands)

FY2001 FY2002 FY2003 FY2004 FY2005E FY2006E FY2007E FY2008E

Net Sales 27,303 33,960 40,290 61,366 85,281 105,630 133,223 165,732
Cost of Sales 16,536 20,008 22,537 31,011 43,279 55,075 70,419 88,253
Gross Profit 10,767 13,952 17,753 30,355 42,002 50,554 62,804 77,479

Total Operating Expenses 9,573 12,175 14,159 21,007 28,014 33,571 41,028 49,584
Mgt Fee, Licns & Rylty Income 20 27 10 26 - - - -
Op. Income Before Depreciation 1,214 1,804 3,604 9,374 13,988 16,983 21,777 27,895

Non-Operating Income (Expense) 113 142 295 208 (217) - - -

EBITDA 1,327 1,946 3,899 9,582 13,771 16,983 21,777 27,895

Depreciation & Amortization 467 464 668 744 1,078 2,097 3,260 3,098
Interest Expense & Bank Fees 805 664 613 846 1,260 1,396 1,769 2,263
FAS 133 Expense (63) (185) 1,076 1,065 0 0 0 0
Taxes 35 159 688 1,858 2,297 2,898 3,729 5,396

Net Income 83 844 854 5,069 9,136 10,593 13,019 17,139

Capital Expenditures* 251 410 621 1,797 2,619 3,000 3,500 4,250
Net Working Capital Investment* n/a (1,592) (86) 69 1,590 929 1,292 1,459

a FY2004 figures are unaudited.

*CapEx and Net Working Capital are given for purposes of calculating FCFF. You do not need to calculate changes in NWC off of the projected balance sheet.
These are presented as the actual outflows, for example in 2008 Spyder spent 4,250 on CapEx and 1,459 on Net Working Capital Investment.
Source: Company documents
Exhibit 6 Spyder Consolidated Balance Sheet—Historical and Forecasted (in $ thousands)

FY2001 FY2002 FY2003 FY2004 FY2005E FY2006E FY2007E FY2008E

Cash 485 793 2,693 7,975 6,812 15,572 27,060 41,587

Accounts Receivable 4,797 3,568 2,560 3,192 5,625 6,873 8,521 10,409
Inventories 1,458 1,284 922 845 1,130 1,402 1,798 2,246
Prepaid Expenses 250 483 406 346 454 543 666 806
Other Current Assets 155 242 829 617 617 617 617 617
Total Current Assets 7,145 6,370 7,410 12,975 14,638 25,008 38,661 55,665

Net PP&E 844 827 849 1,970 3,581 4,554 4,865 6,087
Other Assets 815 1,049 826 906 836 766 696 626

Total Assets 8,804 8,246 9,085 15,851 19,055 30,328 44,222 62,378

Accts Payable & Accrued Exp 2,001 2,216 2,834 5,499 3,372 4,052 4,927 5,945
Other Current Liabilities 123 295 162 - - - - -
Total Current Liabilities 2,124 2,511 2,996 5,499 3,372 4,052 4,927 5,945

Other Liabilities 2,109 502 - 3,814 - - - -

Total Liabilities 4,233 3,013 2,996 9,313 3,372 4,052 4,927 5,945

Preferred Stock & Commmon 4,717 4,719 4,723 4,731 4,731 4,731 4,731 4,731
Retained Earnings (146) 514 1,366 1,807 10,952 21,545 34,564 51,702
Total Stockholders' Equity 4,571 5,233 6,089 6,538 15,683 26,276 39,295 56,433

Total Liabilities & Equity 8,804 8,246 9,085 15,851 19,055 30,328 44,222 62,378

a FY2004 figures are unaudited.

*CapEx and Net Working Capital are given in exhibit 5 for purposes of calculating FCFF. You do not need to calculate changes in NWC off of the projected balance sheet.
Source: Company documents
Exhibit 9 Recent Acquisitions of Companies Comparable to Spyder a

Date LTM EBITDA

Announce Date Total Ent. Value LTM Sales ($
Acquiror Target d Effective ($ millions) ($ millions) millions) EV/Sales EV/EBITDA

Strategic Acquirors
VF Corp. The North Face Inc. 4/7/00 8/16/00 129 244 -44 0.53x NM
adidas-Salomon AG Arc'Teryx Inc. 12/5/01 3/1/02 21 19 1.4 1.10x 15.47x
Deckers Outdoor Corp. Teva Sandals 10/11/02 11/26/02 62 56 6.1 1.12x 10.30x
Columbia Sportswear Co. Mountain Hardwear Inc. 3/13/03 4/1/03 36 31 3.2 1.15x 11.11x
VF Corp. Nautica Enterprises Inc. 7/7/03 8/27/03 600 694 66 0.86x 9.08x
Nike Inc. Converse Inc. 7/9/03 9/4/03 335 205 36 1.63x 9.41x

high 1.63x 15.47x

low 0.53x 9.08x
average 1.07x 11.08x

Financial Acquirors
Investcorp International Inc. Helly Hansen ASA 4/11/97 5/1/97 160 146 18 1.10x 8.89x
Bain Capital Inc. Jack Wolfskin GmbH 8/28/02 9/9/02 63 52 7 1.20x 9.30x
Cerberus Partners LP Fila Holding SpA 3/7/03 6/10/03 586 954 44 0.61x 13.25x
Bear Stearns & Co. CameIBak Inc. 11/6/03 12/2/03 209 74 25 2.83x 8.22x

high 2.83x 13.25x

low 0.61x 8.22x
average 1.43x 9.92x

a
All acquisitions were for 100% of the target's equity except for The North Face (81.2% acquired) and Helly Hansen (70% acquired)

Source: SDC Platinum, a Thomson Financial Product, accessed [May, 2005] and casewriters’ analysis.
Exhibit 9 Comparable M&A Comparables Description

Company Name Description

The North Face Inc. VF acquired the company when it was on the verge of bankruptcy. The company's products include jackets & vests, shirts,
pants, shorts, skirts, footwear, and accessories in Men's & Women's Apparel; and tents, packs, and sleeping bags in
equipment. The company's products are sold to specialty mountaineering, backpacking, and skiing retailers; premium-
sporting goods retailers; and major outdoor specialty retail chains.

Arc'Teryx Inc. ARC'TERYX Equipment, Inc. designs and manufactures men and women technical outwear. It offers jackets, pants,
sweaters,
shirts, shorts, vests, and suits, as well as various harnesses for men and women alpine and ice climbers, snow sports and
backcountry ski touring enthusiasts, backpackers, and trail runners. The company also provides accessories, including hats,
scarves, gloves, and protective kneecaps; and trekking, ascent, descent, daypack, and travel packs, as well as accessories.
It
offers its products through specialty outdoor clothing and equipment retailers, including its own brand stores. ARC'TERYX
Equipment, Inc. was founded in 1989 as Rock Solid Manufacturing and changed its name to ARC'TERYX Equipment, Inc. in
1991.
The company is headquartered in North Vancouver, Canada. The purchase follows Arc'Teryx's meteoric rise in the North
American market with an average 54 percent annual growth between 1995 and 2000. The company was ready to go global
and Salomon's purchase gives them the needed traction. The company is best known for its line of backpacks, but also has
been making inroads into other outdoor sports niches. "Arc'Teryx is a niche success story. Its next step was to expand
around the world and become a year-round brand," explained James Curleigh, president and CEO of Salomon North
America. "Salomon will help accelerate that process."

Teva Sandals Deckers Outdoor Corporation (NASDAQ: DECK) entered into a definitive agreement to acquire Teva, from Mark Thatcher,
the
inventor of the Teva sport sandal and owner of the Teva patents and trademarks, in a cash and stock transaction. Deckers is
a long time license-holder of Teva and plans to expand the brand into more closed-toe and athletic product categories.
Decker expects the transaction to be accretive to net income by approximately $1 million in 2003. Deckers also expects the
acquisition to be accretive to its fiscal 2003 earnings before interest, taxes, depreciation and amortization ("EBITDA") by
approximately $6 million. Deckers Outdoor Corporation engages in the design, production, and brand management of
footwear for outdoor activities and
casual lifestyle use. It offers casual open-toe and closed-toe footwear, adventure travel shoes, trail running shoes, outdoor
cross
training shoes, amphibious footwear, sheepskin boots and slippers, sustainable shoes and bags, hiking boots, rugged
closed-toe
footwear, and sandals under various styles for men, women, and kids. The company also offers various accessories,
including
handbags, headwear, packs, and outerwear. It markets its products under the ‘Teva’, ‘UGG', and ‘Simple’ proprietary brand
names. The company sells its products primarily to specialty retailers, department stores, outdoor retailers, sporting goods
retailers, and shoe stores. Deckers Outdoor Corporation sells its products directly to end-user consumers through its Web
sites,
catalogs, and retail outlet stores, as well as through retailers in the United States, and distributors in the Europe, Canada,
Australia, Asia, and Latin America. The company was founded in 1973 and is headquartered in Goleta, California.

Mountain Hardwear Inc. Mountain Hardwear, Inc. was acquired by Columbia Sportswear Company. Mountain Hardwear President, Jack Gilbert, Vice
President of Design and Sourcing, Paul Kramer, and Vice President of Sales and Marketing, Mike Wallenfels will remain
executive leaders of the company they founded in 1993. Mountain Hardwear's employees, many of whom were also involved
in founding the company, will remain at the company's headquarters in Richmond, Calif. Mountain Hardwear, Inc.
manufactures mountaineering and outdoor equipment and clothing products for the trekking and outdoor industry. Its
products include men’s and women’s apparel, tents, sleeping bags, backpacks, and accessories for mountain climbing.
Mountain Hardwear markets its products through specialty outdoor shops, and sales representatives and associates in the
United States, Europe, Canada, Asia, South America, Australia, Nepal, and New Zealand. The company was founded in
1993 and is based in Richmond, California. Columbia expects to be able to leverage the acquisition by utilizing its existing
relationships with retailers in the U.S. and Europe, and apparel makers in Asia, to boost Mountain Hardwear's fortunes.
Goals: triple Mountain Hardwear's annual sales to $100 million in five years and lift its operating margin to Columbia's 22%
from its current level of roughly 10%. Mountain Hardware probably would have met that goal on its own; high-volume
outdoors retailers like REI, Erehwon, Galyan's Trading and Eastern Mountain Sports were pushing to get more gear from the
company. But meeting the demand would have meant borrowing heavily against receivables, and Mountain Hardwear's
managers refused to carry working capital greater than 25% of its $30 million in revenue. Now, backed by Columbia's
balance sheet--Mountain Hardwear can expand more rapidly and will also get use of Columbia's vast network of Asian textile
suppliers to avoid onerous import and export fees. Columbia does business with 300 factories in 19 countries, mostly in and
around Asia.

Nautica Enterprises Inc. Nautica Enterprises, Inc. (Nasdaq: NAUT) was acquired by VF Corporation (NYSE: VFC) VF expects the acquisition of
Nautica could add an additional $.05 to $.08 to its earnings per share in 2003. The transaction will also result in an additional
$10 million to $15 million in cash flow from operations in 2003. As a result of this transaction, VF Corporation now expects
earnings per share could increase 5-7% from the $3.24 per share from continuing operations reported in 2002. Full year
sales are now expected to increase approximately 3%. VF Corporation financed the acquisition through available cash and
short-term borrowings. Nautica Enterprises, Inc. engages in the design, source, and distribution of apparel under the brands
Nautica, Nautica Competition, Nautica Jeans Company, Earl Jean, John Varvatos, E.Magrath, and Byron Nelson. It operates
in three segments: wholesale, retail, and licensing. In the wholesale segment, the company sells Nautica branded apparel
primarily to department and specialty stores in approximately 2,300 retail locations throughout the United States. Earl Jean
and John Varvatos products are sold primarily to department stores, specialty retailers, and fashion forward boutiques
primarily throughout the United States and certain European markets. In the retail segment, Nautica operates 100 Nautica,
nine Nautica Jeans, one Earl Jean, and one John Varvatos outlet stores located in outlet centers throughout the United
States. Such operations are primarily conducted through its wholly owned subsidiary, Nautica Retail USA, Inc. The company
operates six full-price retail stores consisting of one Nautica store, three Earl Jean stores, and two John Varvatos stores.
Nautica Licensing segment licenses products for wholesale and/or retail distribution in the product categories of fragrances,
tailored clothing, dress shirts, neckwear, watches, hosiery, eyewear, women's swimwear, leather belts, top coats, gloves,
scarves, umbrellas, and beach towels; and the Nautica Home Collection featuring bedding, bath linens and accessories,
tableware, and furniture. Internationally, Nautica apparel is licensed for sale in approximately 100 countries.

Converse Inc. Nike Inc. announced that it has agreed to acquire CVEO Corporation, formerly known as Converse Inc., for $305 million on
July 9,
2003. Perseus, L.L.C. will sell its stake in the transaction.CVEO Corporation designs, manufactures, and markets athletic
footwear and apparel for men, women, and children in the United States. The company offers footwear products for
basketball, training, and cheering activities, as well as for alternative sports, such as skateboarding. It offers its products
through a network of athletic specialty, sporting goods, department, and shoe stores, as well as skate shops, children's
bootery, and specialty apparel retailers. CVEO Corporation was founded in 1908 under the name Converse, Inc. and
changed its name to CVEO Corporation in 2001. The company is based in North Andover, Massachusetts. As of September
4, 2003, CVEO Corporation is a subsidiary of Nike, Inc.

Helly Hansen ASA

Investcorp acquired 70% stake in Helly Hansen on April 12, 1997. in a deal worth $112 million. Inverscorp acquired 70
percent of
Helly Hansen. The transaction valued Helly Hansen at about $160 million. Helly Hansen ASA offers protective technical gear
for work, survival, and sport. It offers jackets, pants, baselayer, thermal wear, footwear, and tops for men and women, as well
as outerwear, tops, hats, and gloves for kids. The company also offers accessories, such as gloves, bags, and headwear. It
offers its products through retail stores in Estonia, Australia, Austria, Belgium, Canada, Denmark, France, Germany, Greece,
Hungary, Iceland, Italy, Japan, the Netherlands, Switzerland, Sweden, Spain, Norway, and the united States, as well as
through online. The company was founded in 1877 and is based in Moss, Norway. Investcorp Bank BSC, Private Equity is a
private equity firm specializing in investments in mid sized companies. The firm seeks to invest in companies in almost any
industry based in North America and Western Europe. It typically invests in companies with enterprise values between $300
million and $1 billion. The firm seeks to exit its investments through a private sale or a public offering. It operates as a
subsidiary of Investcorp Bank BSC. Investcorp Bank BSC, Private Equity is based in the New York, New York with an
additional office in London, United Kingdom.

Jack Wolfskin GmbH Johnson Outdoors, Inc. (NasdaqNM:JOUT) reached an agreement for the sale of Jack Wolfskin Ausrustung fur Draussen
GmbH to
the management of the company and Bain Capital on August 28, 2002. Dresdner Kleinwort Wasserstein acted as the
financial advisor to Johnson Outdoors, Inc. Dr. Thomas N König and Hans Jürgen Meyer of Shearman & Sterling LLP
provided legal advice. Dr. Jörg Kirchner, Rainer Eichholz and Hans-Günther Nordhues of Ashurst Morris Crisp provided legal
advice to Bain Capital. James L Learner, David Eich and Erik C Dahl of Kirkland & Ellis and Gleiss Lutz also advised Bain
Capital on the deal. Ernst & Young Corporate Finance LLC served as an Accountant for Bain Capital. JACK WOLFSKIN
Ausrüstung für Draussen GmbH & Co. KGaA engages in the design and production of functional apparel, equipment, and
footwear for outdoor activities, leisure, and travel. The company’s apparel products include travel and leisure, jackets, vests,
fleeces, sweaters, t-shirts, shirts, blouses, zip-pants, skirts, underwears, and headgears. It also offers footwear products,
such as sandals, socks, and accessories; and daypacks, travel gears, bags, rucksacks, child carriers, schoolbags, sleeping
bags, mats, umbrellas, tunnel and dome tents, and family accessories. The company offers its products for alpine
mountaineering, hiking, biking, camping, paddling, climbing, skating, trail running, skiing, ice-skating, snowshoeing, and
trekking. It markets its products through retail outlets, outdoor and sports shops, mail orders, and brand stores in Europe and
Japan. The company was founded in 1981 and is based in Idstein, Germany. JACK WOLFSKIN Ausrüstung für Draussen
GmbH &
Co. KGaA is a former subsidiary of Johnson Outdoors, Inc.

Fila Holding SpA Fila develops, produces, and distributes footwear, apparel, and accessories. It offers tennis, running, mountain, golf, fitness
and wellness, vintage, and sports wear. The company distributes its products through boutiques, athletic specialty, and
department stores. It operates in Americas, Europe, and Asia.

CameIBak Inc.

Bear Stearns Merchant Banking II, L.P. (MBP II), managed by Bear Stearns Merchant Banking announced the acquisition of
CamelBak Products, Inc. from the Bowes family. Bear Stearns Merchant Banking contributed $90 million of equity while
Bank of New York and BNP Paribas contributed $80 million in senior debt. American Capital Strategies Ltd. is investing $38
million in the form of senior and junior subordinated debt in the transaction. The company’s executive management team,
including Chief Executive Glenn Gross, Woody Scale, who oversees sales and R&D, and Chuck Hunter, who oversees
military sales, will remain with the company after the buyout, and its headquarters will stay in Petaluma.J.P. JP Morgan
Chase & Co. (NYSE:JPM) was the financial advisor and Morgan, Lewis & Bockius, L.L.P was the legal advisor to the
company. Kirkland & Ellis LLP was the legal advisor and Bo Arlander and Rick Perkal of Bear, Stearns & Co. Inc. were the
financial advisors to Bear Stearns Merchant Banking. PricewaterhouseCoopers, LLP served as an accountant.
Exhibit 10 Comparable Companies Description

Company Name Description

Adidas-Salomon AG Designs, manufactures, and markets sports footwear, apparel and accessories,
under the brands adidas (footwear and apparel), Salomon (ski and snowboard
equipment), Arc'Teryx (ski and outdoor apparel), Bonfire (snowboard apparel), and
Maxfli (golf equipment). Headquartered in Germany and traded in the Frankfurt
Stock Exchange.
Columbia Sportswear Co. Manufactures ski and outdoor apparel.
K2 Inc. Manufactures outdoor sports equipment and apparel for ski, snowboard, skating,
fishing, mountain bike, and paintball, as well as industrial products like fiberglass for
marine applications. Brands include K2 and Volkl (skis and apparel), Marker (ski
bindings and apparel), Marmot (outdoor apparel), Ride (snowboards and apparel).
Nike Inc. Designs, develops, and markets sports footwear and apparel for running, basketball,
tennis, golf, soccer, baseball, football, bicycling, volleyball, wrestling, cheerleading,
aquatic activities, and hiking.
Quiksilver Inc. Designs, manufactures, and distributes surf, swimming, and snowboard apparel and
equipment under the Quiksilver, Roxy, and Gotcha brands.
Skis Rossignol SA Manufactures ski and snowboard equipment and apparel under the brands
Rossignol (skis and ski apparel), Dynastar (skis and boots), Look (bindings), Kerma
(poles), and Lange (boots). Headquartered in France and traded in the Paris Stock
Exchange.
VF Corp. Manufactures and markets branded apparel and accessories. Subsidiaries include
The North Face, focused on technically advanced products for climbers and extreme
skiers, Lee jeans, and Jansport backpacks.

Source: Bloomberg LP, accessed [May/2005].

Exhibit 11 Selected Financial Data about Comparable Companies (in $ or Euro millions, as of 03/31/2004) a

LTM Interest- Five-Year

Market Value Bearing Debt Average Debt-
Company Name Industry Beta b
of Equity c
to-Total Value LTM Sales LTM EBITDA EV/Sales EV/EBITDA

Adidas-Salomon AGd Sports Apparel, Footwear, & Equipment 0.81 4,302 1,459 0.39 6,221 586 0.93x 9.84x
Columbia Sportswear Co. Sports Apparel 1.48 2,239 20 0.06 990 220 2.28x 10.29x
K2 Inc. Sports Equipment 1.36 559 209 0.41 839 63 0.92x 12.11x
Nike Inc.e Sports Apparel & Footwear 0.70 20,558 866 0.08 11,751 1,736 1.82x 12.34x
Quiksilver Inc.f Sports Apparel 1.01 1,217 138 0.17 1,039 130 1.30x 10.44x
Skis Rossignol SAg Sports Equipment & Apparel 0.55 174 118 0.44 479 25 0.61x 11.94x
VF Corp Apparel, incl. Sports Apparel 0.59 5,113 994 0.20 5,390 725 1.13x 8.42x

high 2.28x 12.34x

low 0.61x 8.42x
average 1.28x 10.77x

a
Figures are in U.S. dollars for all companies except for Adidas-Salomon AG and Skis Rossignol SA, which are in Euros
b
Estimated by 60-month regression of stock returns on S&P500 returns
c
For companies that have dual share classes including one non-traded class, market value of equity is computed as the product of the publicly traded
share price by the total number of shares outstanding of all classes
d
Traded in the Frankfurt stock exchange
e
Fiscal quarter ending Jan 31, 2004
f
Fiscal quarter ending Feb 29, 2004
g
Traded in the Paris stock exchange

Sources: Compiled from Bloomberg LP, accessed [May/2005], http://www.adidas-salomon.com, http://www.rossignolcorporate.com, Standard & Poor’s Compustat data, accessed [May/2005], and casewriters’ analysis.
Case Supplement: Spyder Active Sports - Comparable Company Financials

Columbia Sportswear Co.

1999 2000 2001 2002 2003
Sales 470.5 614.8 779.6 816.3 951.8
COGS 259.6 334.7 422.4 437.8 511.1
SG&A 150.8 183.7 209.5 216.1 252.3
EBIT 60.1 96.4 148.2 163.7 190.2
EBITDA 72.7 110.0 164.9 182.4 213.3
Net Income 33.0 58.6 88.8 102.5 120.1
Diluted EPS 0.859 1.48 2.23 2.559 2.959

Multiples
LTM P/E 15.53x 24.25x 16.49x 17.07x 19.75x
LTM EV/Revenue 1.23x 2.14x 1.77x 1.99x 2.42x
LTM EV/EBITDA 8.33x 12.44x 9.16x 9.23x 10.59x

ROE 19.8% 27.0% 29.5% 24.8% 21.6%

ROA 13.1% 17.7% 21.8% 19.2% 17.3%

K2 Inc.
1999 2000 2001 2002 2003
Sales 646.0 665.6 589.5 582.2 718.5
COGS 451.5 462.2 413.7 411.6 498.6
SG&A 147.0 151.2 144.3 143.3 187.9
EBIT 35.3 38.8 19.3 27.3 32.1
EBITDA 49.1 53.1 35.2 41.2 50.4
Net Income 9.8 16.6 (7.7) 12.1 11.4
Diluted EPS 0.504 0.926 (0.429) 0.671 0.444

Multiples
LTM P/E 21.31x 18.04x 8.37x 19.70x 36.26x
LTM EV/Revenue 0.47x 0.38x 0.35x 0.45x 0.87x
LTM EV/EBITDA 7.76x 6.07x 5.00x 6.16x 11.89x

ROE 4.0% 7.5% (3.5%) 5.4% 3.4%

ROA 4.7% 5.3% 2.8% 4.0% 3.1%

Nike Inc.(1)
1999 2000 2001 2002 2003
Sales 8,776.9 8,995.1 9,488.8 9,893.0 10,697.0
COGS 5,506.3 5,403.8 5,784.9 6,004.7 6,313.6
SG&A 2,426.6 2,606.4 2,689.7 2,835.8 3,154.1
EBIT 824.6 984.9 1,014.2 1,052.5 1,229.3
EBITDA 1,053.4 1,208.5 1,228.3 1,324.1 1,491.8
Net Income 451.4 579.1 589.7 663.3 474.0
Diluted EPS 0.783 1.036 1.079 1.228 1.383

Multiples
LTM P/E 30.14x 20.16x 23.95x 17.55x 21.83x
LTM EV/Revenue 1.70x 1.39x 1.55x 1.21x 1.54x
LTM EV/EBITDA 13.58x 10.65x 12.44x 8.93x 10.50x
ROE 13.7% 17.9% 17.8% 18.2% 18.9%
ROA 9.7% 11.1% 10.9% 10.7% 11.6%
Quicksilver Inc.(2)
1999 2000 2001 2002 2003
Sales 443.7 519.4 620.6 705.5 975.0
COGS 273.5 315.9 382.8 419.2 541.8
SG&A 124.5 146.3 181.2 216.6 332.2
EBIT 47.9 57.1 56.6 69.7 101.1
EBITDA 55.6 67.2 70.5 84.1 122.3
Net Income 26.6 31.8 28.0 37.6 58.5
Diluted EPS 0.285 0.343 0.291 0.384 0.517

Multiples
LTM P/E 14.50x 15.35x 9.49x 20.79x 17.41x
LTM EV/Revenue 0.96x 1.12x 0.77x 0.99x 1.17x
LTM EV/EBITDA 7.89x 8.54x 5.87x 9.42x 9.49x

ROE 19.7% 19.3% 14.2% 15.4% 16.3%

ROA 12.7% 11.5% 9.1% 10.0% 10.9%

VF Corp.
1999 2000 2001 2002 2003
Sales 5,551.6 5,403.1 5,220.4 5,083.5 5,245.4
COGS 3,657.1 3,555.0 3,440.5 3,254.0 3,262.4
SG&A 1,230.0 1,273.8 1,200.3 1,229.9 1,338.1
EBIT 652.6 558.7 568.8 624.2 644.9
EBITDA 820.1 718.3 740.8 747.9 752.9
Net Income 366.2 260.3 137.8 (154.5) 397.9
Diluted EPS 2.987 2.261 1.886 3.238 3.607

Multiples
LTM P/E 9.76x 9.36x 16.05x 22.96x 12.71x
LTM EV/Revenue 0.82x 0.79x 0.88x 0.84x 1.04x
LTM EV/EBITDA 5.60x 5.45x 7.29x 5.88x 7.14x

ROE 17.0% 12.0% 9.9% 18.9% 21.7%

ROA 10.4% 8.3% 8.4% 10.3% 10.4%

Adidas-Salomon AG
1999 2000 2001 2002 2003
Sales 7,513.8 8,188.6 8,578.1 9,155.0 8,794.9
COGS 4,212.9 4,640.9 4,927.6 5,198.6 4,846.2
SG&A 2,536.3 2,824.1 2,858.0 3,151.2 3,127.0
EBIT 669.7 617.9 668.6 669.7 684.0
EBITDA 837.0 804.2 876.4 893.6 901.7
Net Income 319.6 255.0 292.6 320.8 365.0
Diluted EPS 1.762 1.406 1.613 1.767 2.007

Multiples
LTM P/E 10.69x 11.70x 17.17x 16.11x 14.69x
LTM EV/Revenue 1.00x 0.70x 0.86x 0.85x 0.83x
LTM EV/EBITDA 8.81x 7.20x 8.54x 8.68x 8.00x

ROE 39.9% 24.3% 22.8% 21.8% 21.3%

ROA 8.8% 7.2% 7.3% 7.1% 7.2%
 Skis Rossignol SA(3)
1999 2000 2001 2002 2003
Sales 540.8 662.8 668.8 672.5 679.2
COGS 342.8 424.7 429.4 436.6 444.3
SG&A 127.6 148.2 152.7 150.8 153.3
EBIT 26.6 43.7 37.5 42.6 34.1
EBITDA 61.2 78.1 71.9 75.5 65.2
Net Income 5.4 10.3 8.7 8.7 10.1
Diluted EPS 0.435 0.825 0.697 0.701 0.814

Multiples
LTM P/E NM 52.84x 23.41x 79.81x 32.07x
LTM EV/Revenue 0.88x 0.81x 0.64x 0.72x 0.74x
LTM EV/EBITDA - - - - -

ROE 4.7% 9.1% 7.0% 7.0% 8.2%

ROA 3.7% 5.7% 4.6% 5.3% 4.3%

Source: Capital IQ
Data in millions of US Dollars, except per share data, percentages and multiples.
(1) FYE May
(2) FYE October
(3) FYE March
 2004
1,095.3
597.4
290.5
211.4
230.1
138.6
3.397

18.14x
2.08x
9.79x

19.5%
15.2%

2004
1,200.7
800.7
319.0
81.0
113.3
38.9
0.862

20.69x
1.00x
12.39x

7.0%
4.3%

2004
12,253.1
7,001.4
3,702.0
1,549.7
1,863.2
945.6
1.753

22.26x
1.68x
11.10x
21.6%
13.2%
 2004
1,266.9
688.8
446.2
131.9
158.8
81.4
0.682

22.18x
1.50x
12.01x

15.7%
9.7%

2004
5,218.1
3,067.7
1,486.0
664.4
794.6
474.7
3.538

13.20x
1.18x
7.95x

17.6%
9.0%

2004
8,224.0
4,275.6
3,004.6
820.0
986.7
441.0
2.374

17.03x
0.99x
8.57x

22.5%
8.5%
 2004
681.6
453.1
162.0
13.0
41.1
(35.0)
(2.807)

21.86x
0.80x
7.72x

(33.2%)
1.5%