Burton Sensors, Inc.
, Student Spreadsheet Supplement
Harvard Business School Brief Case 9-918-539
Courseware 9-918-541
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Created 6/27/2018
Exhibit 1
Burton Sensors Consolidated Balance Sheets (Actual/Projected), 2014-2021 (Fiscal years ending December 31; U.S. $000s)
2014A 2015A 2016A 2017E 2018E 2019E 2020E 2021E
Cash and equivalents 279.7 251.3 304.3 371.3 359.7 368.6 437.5 484.6
Accounts receivable 1,552.5 1,894.0 2,315.4 2,824.9 3,276.9 3,539.1 3,751.4 3,976.5
Inventory 1,672.9 2,096.7 2,436.3 2,997.9 3,477.6 3,755.8 3,981.1 4,220.0
Other current assets 253.5 311.8 371.9 461.2 535.0 577.8 612.5 649.2
Current assets 3,758.6 4,553.8 5,427.8 6,655.3 7,649.2 8,241.3 8,782.5 9,330.3
Net PP&E 3,874.0 4,293.3 4,654.1 4,847.8 4,938.8 4,875.2 4,789.5 4,698.6
Total assets 7,632.6 8,847.2 10,082.0 11,503.2 12,588.0 13,116.5 13,572.0 14,028.9
Accounts payable 773.1 935.3 1,153.0 1,383.6 1,605.0 1,733.4 1,837.4 1,947.7
Accrued expenses 418.2 491.0 567.2 714.9 829.3 895.6 949.3 1,006.3
Bank loans 3,020.0 3,880.0 4,580.0 5,080.0 5,230.0 4,930.0 4,530.0 4,030.0
Deferred taxes 351.9 360.7 406.2 527.9 590.1 624.0 658.3 702.5
Long-term debt, current portion 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0
Current Liabilities 4,713.2 5,817.0 6,856.5 7,856.4 8,404.4 8,333.1 8,125.1 7,836.5
Long-term debt 1,980.0 1,830.0 1,680.0 1,530.0 1,380.0 1,230.0 1,080.0 930.0
Total liabilities 6,693.2 7,647.0 8,536.5 9,386.4 9,784.4 9,563.1 9,205.1 8,766.5
Shareholders' equity 939.4 1,200.1 1,545.5 2,116.8 2,803.6 3,553.4 4,366.9 5,262.4
Total liabilities and equity 7,632.6 8,847.2 10,082.0 11,503.2 12,588.0 13,116.5 13,572.0 14,028.9
Bank loan / (receivables + inventory) 0.94 0.97 0.96 0.87 0.77 0.68 0.59 0.49
Liabilities / book equity 7.1x 6.4x 5.5x 4.4x 3.5x 2.7x 2.1x 1.7x
Total interest-bearing debt / book equity 5.5x 4.9x 4.1x 3.2x 2.4x 1.8x 1.3x 1.0x
Tables below are not shown in case
Working Capital Assumptions (U.S. $ thousands)
2014A 2015A 2016A 2017E 2018E 2019E 2020E 2021E
Income Statement Metrics
Revenue 6,336.9 7,794.4 9,298.7 11,530.4 13,375.3 14,445.3 15,312.0 16,230.7
Cost of Goods Sold 2,686.8 3,359.4 4,035.6 4,958.1 5,751.4 6,211.5 6,584.2 6,979.2
Working Capital Ratios
Accounts receivable (% Sales) 24.5% 24.3% 24.9% 24.5% 24.5% 24.5% 24.5% 24.5%
Inventory (% Sales) 26.4% 26.9% 26.2% 26.0% 26.0% 26.0% 26.0% 26.0%
Accounts payable (% Sales) 12.2% 12.0% 12.4% 12.0% 12.0% 12.0% 12.0% 12.0%
Other Activity Ratios
Other Current Assets (% Sales) 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0%
Accrued Expenses (% Sales) 6.6% 6.3% 6.1% 6.2% 6.2% 6.2% 6.2% 6.2%
2014A 2015A 2016A 2017E 2018E 2019E 2020E 2021E
PP&E (Beginning) 3,618.0 3,874.0 4,293.3 4,654.1 4,847.8 4,938.8 4,875.2 4,789.5
Less: Depreciation (98.9) (102.9) (122.7) (152.2) (176.6) (208.0) (238.9) (253.2)
Add: CapEx & Purchase of PP&E 354.9 522.2 483.5 345.9 267.5 144.5 153.1 162.3
PP&E (Ending) 3,874.0 4,293.3 4,654.1 4,847.8 4,938.8 4,875.2 4,789.5 4,698.6
Depreciation (% Sales) 1.6% 1.3% 1.3% 1.3% 1.3% 1.4% 1.6% 1.6%
CapEx (% Sales) 5.6% 6.7% 5.2% 3.0% 2.0% 1.0% 1.0% 1.0%
Long-Term Debt Schedule (U.S. $ thousands)
2014A 2015A 2016A 2017E 2018E 2019E 2020E 2021E
Beginning balance (with current portion) 2,280.0 2,130.0 1,980.0 1,830.0 1,680.0 1,530.0 1,380.0 1,230.0
Add: issuances 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Less: retirements (150.0) (150.0) (150.0) (150.0) (150.0) (150.0) (150.0) (150.0)
Ending balance (with current portion) 2,130.0 1,980.0 1,830.0 1,680.0 1,530.0 1,380.0 1,230.0 1,080.0
Ending balance (without current portion) 1,980.0 1,830.0 1,680.0 1,530.0 1,380.0 1,230.0 1,080.0 930.0
Current portion of long-term debt 150.0 150.0 150.0 150.0 150.0 150.0 150.0 150.0
Interest rate as % of beginning balance 5.5% 5.5% 5.5% 5.5% 5.5% 5.5% 5.5% 5.5%
Interest payment 247.5 283.3 322.3 352.6 371.8 371.8 347.1 316.8
Deferred Tax Schedule (U.S. $ thousands)
2014A 2015A 2016A 2017E 2018E 2019E 2020E 2021E
Beg. accrued taxes 515.8 351.9 360.7 406.2 527.9 590.1 624.0 658.3
Accrual of taxes 131.6 140.4 186.0 307.6 369.8 403.8 438.0 482.2
Tax payments 295.5 131.6 140.4 186.0 307.6 369.8 403.8 438.0
End. accrued taxes 351.9 360.7 406.2 527.9 590.1 624.0 658.3 702.5
Tax payments as % of previous year's EBT 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%
ember 31; U.S. $000s)
(24.5% of projected sales)
(26% of projected sales)
(4% of projected sales)
(12% of projected sales)
(6.2% of projected sales)
Exhibit 2
Burton Sensors Consolidated Income Statements (Actual/Projected), 2014-2021 (Fiscal years ending December 31; U.S. $000s
2014A 2015A 2016A 2017E 2018E 2019E 2020E 2021E
Net sales 6,336.9 7,794.4 9,298.7 11,530.4 13,375.3 14,445.3 15,312.0 16,230.7
COGS 2,686.8 3,359.4 4,035.6 4,958.1 5,751.4 6,211.5 6,584.2 6,979.2
Gross profit 3,650.1 4,435.0 5,263.1 6,572.3 7,623.9 8,233.8 8,727.8 9,251.5
SG&A expense 2,230.6 2,790.4 3,263.8 4,035.6 4,681.3 5,055.8 5,359.2 5,680.7
R&D expense 697.1 857.4 1,022.9 1,153.0 1,337.5 1,444.5 1,531.2 1,623.1
Depreciation and amortization 98.9 102.9 122.7 152.2 176.6 208.0 238.9 253.2
Net interest expense (income)* 247.5 283.3 322.3 352.6 371.8 371.8 347.1 316.8
Pretax income (loss) 376.1 401.1 531.3 878.9 1,056.7 1,153.6 1,251.5 1,377.7
Income taxes 131.6 140.4 186.0 307.6 369.8 403.8 438.0 482.2
Net income 244.4 260.7 345.4 571.3 686.8 749.9 813.5 895.5
Number of common shares (thousands) 1,500 1,500 1,500 1,500 1,500 1,500 1,500 1,500
Earnings per share 0.16 0.17 0.23 0.38 0.46 0.50 0.54 0.60
Cash dividend per share 0 0 0 0 0 0 0 0
*
Burton pays an average of 5.5% interest on all interest bearing debt.
Tables below are not shown in case
Assumptions
2014A 2015A 2016A 2017E 2018E 2019E 2020E 2021E
Revenue growth 23.0% 19.3% 24.0% 16.0% 8.0% 6.0% 6.0%
Items as a % of Revenue
COGS 42.4% 43.1% 43.4% 43.0% 43.0% 43.0% 43.0% 43.0%
SG&A expense 35.2% 35.8% 35.1% 35.0% 35.0% 35.0% 35.0% 35.0%
R&D expense 11.0% 11.0% 11.0% 10.0% 10.0% 10.0% 10.0% 10.0%
Tax rate 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0% 35.0%
Payout ratio - - -
December 31; U.S. $000s)
(43% of projected sales)
(35% of projected sales)
(10% of projected sales)
(35% of projected EBT)
Exhibit 3
Burton Sensors Consolidated Statement of Cash Flows (Actual/Projected), 2014-2021 (Fiscal years ending December 31; U.S.
2014A 2015A 2016A 2017E 2018E 2019E 2020E 2021E
Operating Activities
Net income 244.4 260.7 345.4 571.3 686.8 749.9 813.5 895.5
Depreciation and amortization 98.9 102.9 122.7 152.2 176.6 208.0 238.9 253.2
Less: increase (decrease) in accounts receivable 320.0 341.5 421.3 509.6 452.0 262.2 212.3 225.1
Less: increase (decrease) in inventory 289.8 423.7 339.6 561.6 479.7 278.2 225.3 238.9
Less: increase (decrease) in other current assets 55.6 58.3 60.2 89.3 73.8 42.8 34.7 36.7
Add: increase (decrease) in accounts payable 120.3 162.2 217.7 230.6 221.4 128.4 104.0 110.2
Add: increase (decrease) in accrued expenses 30.2 72.8 76.2 147.7 114.4 66.3 53.7 57.0
Add: increase (decrease) in deferred taxes (163.9) 8.8 45.6 121.7 62.2 33.9 34.3 44.2
Operating activities - net cash flow (335.5) (216.1) (13.5) 62.9 255.9 603.4 772.0 859.4
Investing Activities
Less: capex (354.9) (522.2) (483.5) (345.9) (267.5) (144.5) (153.1) (162.3)
Investing activities - net cash flow (354.9) (522.2) (483.5) (345.9) (267.5) (144.5) (153.1) (162.3)
Financing Activities
Add: changes in bank borrowings 800.0 860.0 700.0 500.0 150.0 (300.0) (400.0) (500.0)
Add: long-term debt net issuance (150.0) (150.0) (150.0) (150.0) (150.0) (150.0) (150.0) (150.0)
Add: net issuance of common stock 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Less: cash dividend 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Financing activities - net cash flow 650.0 710.0 550.0 350.0 0.0 (450.0) (550.0) (650.0)
Total net cash flow (40.3) (28.4) 53.0 67.0 (11.6) 8.9 68.9 47.1
Beginning cash 320.0 279.7 251.3 304.3 371.3 359.7 368.6 437.5
Change in cash (40.3) (28.4) 53.0 67.0 (11.6) 8.9 68.9 47.1
Ending cash 279.7 251.3 304.3 371.3 359.7 368.6 437.5 484.6
ending December 31; U.S. $000s)
Exhibit 4
Comparative Data on Four Publically Traded Sensor Manufacturers, 2014-2016 (U.S. $ millions)
TE Connectivity (TEL) Ametek (AME) Opsens (OPS)
2014 2015 2016 2014 2015 2016 2014 2015
Net sales 12,233.00 12,238.00 13,113.00 3,974.30 3,840.09 4,300.17 5.21 9.60
Operating profit 1,992.00 1,936.00 2,201.00 944.32 841.40 931.89 (5.13) (8.49)
Net income 2,420.00 2,009.00 1,683.00 590.86 512.16 681.47 (2.88) (9.28)
Assets 20,589.00 17,608.00 19,403.00 6,660.45 7,100.67 7,796.06 12.76 16.86
Total debt 3,884.00 4,070.00 4,344.00 1,866.12 2,062.64 1,866.17 3.69 5.58
Total liabilities 11,004.00 9,123.00 9,652.00 3,405.82 3,844.16 3,768.43 6.87 9.55
Shareholders' equity 9,585.00 8,485.00 9,751.00 3,254.63 3,256.51 4,027.63 5.89 7.31
Operating margin 0.16 0.16 0.17 0.24 0.22 0.22 (0.99) (0.88)
Profit margin 0.20 0.16 0.13 0.15 0.13 0.16 (0.55) (0.97)
Shares outstanding 405.00 366.00 355.00 239.91 232.59 230.23 60.18 66.74
Market capitalization 24,959.14 24,618.77 33,490.92 12,748.27 15,280.00 16,940.38 51.75 108.11
Equity beta* 1.30 1.26 1.24 1.29 1.16 1.25 1.32 1.17
EPS 5.98 5.49 4.74 2.46 2.20 2.96 (0.05) (0.14)
P/E 10.31 12.25 19.90 21.58 29.83 24.86 NA NA
D/Marketcap 0.16 0.17 0.13 0.15 0.13 0.11 0.07 0.05
*Based on previous five years
Opsens (OPS) Cyberoptics (CYBE)
2016 2014 2015 2016
17.75 41.13 66.24 53.33
(6.38) (2.20) 6.15 1.02
(6.54) (2.10) 11.56 2.00
27.61 44.74 59.58 59.50
5.30 - - -
9.64 8.68 10.68 7.22
17.97 36.06 48.90 52.28
(0.36) (0.05) 0.09 0.02
(0.37) (0.05) 0.17 0.04
80.95 6.71 6.83 6.95
90.67 51.30 191.30 114.61
1.02 0.82 0.80 0.85
(0.08) (0.31) 1.69 0.29
NA NA 16.55 57.30
0.06
Exhibit 5
Electro-Engineering Consolidated Balance Sheets (Actual), 2014-2016 (Fiscal years ending December 31; U.S. $000s)
2014 2015 2016
Cash and equivalents 379.1 350.2 359.8
Accounts receivable 485.9 592.0 680.1
Inventory 279.8 413.7 480.6
Prepaid expenses 27.8 5.2 16.9
Current assets 1,172.5 1,361.1 1,537.4
Net PP&E 249.1 339.3 479.8
Total assets 1,421.6 1,700.3 2,017.1
Bank loans 340.6 340.6 310.6
Accounts payable 126.6 153.4 175.1
Accrued expenses 104.9 77.0 101.8
Total Liabilities 572.1 570.9 587.5
Shareholders' equity 849.5 1,129.4 1,429.6
Total liabilities and equity 1,421.6 1,700.3 2,017.1
r 31; U.S. $000s)
Exhibit 6
Electro-Engineering Consolidated Income Statements (Actual), 2014-2016 (Fiscal years ending December 31; U.S. $000s)
2014 2015 2016
Net sales 2,944.9 3,566.3 4,072.7
COGS 1,525.0 1,811.7 2,085.2
Gross profit 1,420.0 1,754.6 1,987.5
SG&A expense 814.9 930.1 1,080.9
R&D expense 153.1 178.3 219.9
Depreciation and amortization 142.2 196.9 206.1
Interest expense 18.7 18.7 18.7
Pretax income (loss) 291.0 430.6 461.8
Income taxes 101.8 150.7 161.6
Net income 189.1 279.9 300.2
Number of common shares (thousand 1,100 1,100 1,100
Earnings per share 0.17 0.25 0.27
Cash dividend per share 0.0 0.0 0.0
ecember 31; U.S. $000s)
Exhibit 7
Electro-Engineering Consolidated Statement of Cash Flows (Actual), 2014-2016 (Fiscal years ending December 31; U.S. $000s
2014 2015 2016
Operating Activities
Net income 189.1 279.9 300.2
Depreciation and amortization 142.2 196.9 206.1
Less: increase (decrease) in accounts receivable 9.0 106.1 88.1
Less: increase (decrease) in inventory (108.5) 133.9 66.9
Less: increase (decrease) in prepaid expenses (28.0) (22.6) 11.7
Add: increase (decrease) in accounts payable 35.0 26.7 21.8
Add: increase (decrease) in accrued expenses 14.0 (27.9) 24.8
Operating activities - net cash flow 507.9 258.2 386.1
Investing Activities
Less: capex (230.3) (287.1) (346.6)
Investing activities - net cash flow (230.3) (287.1) (346.6)
Financing Activities
Add: debt net issuance (100.0) 0.0 (30.0)
Add: net issuance of common stock 0.0 0.0 0.0
Less: cash dividend 0.0 0.0 0.0
Financing activities - net cash flow (100.0) 0.0 (30.0)
Total net cash flow 177.6 (28.9) 9.6
Beginning cash 201.5 379.1 350.2
Change in cash 177.6 (28.9) 9.6
Ending cash 379.1 350.2 359.8
ng December 31; U.S. $000s)
