EX-99.(C) 2 exhibit99_121506.htm

 

VALUATION ANALYSIS

 

 

 

Presentation to the

Board of Directors of

 

 

 

 


 

 

 

 

November 8, 2006

 

 

 

 

Goldsmith, Agio, Helms & Lynner, LLC

Copyright 2006

 

PREFACE

 

This presentation document has been prepared by Goldsmith, Agio, Helms & Lynner, LLC (“GAH”), as part of a presentation being made in support of our opinion as to the fair market value of the enterprise value and the equity value of Hanover Direct, Inc. (“Hanover” or the “Company”). Unless otherwise noted, the information and analyses contained in this document were prepared as of October 30, 2006. The material in this presentation and all analyses contained herein are confidential and are for the use of Hanover’s senior management team (“Management”) in connection with its ongoing strategic planning initiatives. Any use of this material or the analyses contained herein for any other purpose or any publication of this material or the analyses contained herein without the expressed written consent of GAH is strictly prohibited.

 

Among the activities conducted in the course of our preparation of our opinion, GAH received and reviewed business and financial information of Hanover and held discussions with Management regarding this information, including the projections prepared by Management. In connection with the analyses contained herein, GAH has not independently verified the historical financial information received and has relied on all such information as being complete and accurate in all material respects. We assume that such information has been reasonably prepared and reflects the best currently available estimates and judgment of Management, as the case may be. In addition, we have not performed or obtained any independent appraisal of the properties, assets, or liabilities of the Company.

 

Several analytical methodologies have been employed herein and no one method of analysis should be regarded as critical to the overall conclusion we have reached. Each analytical technique has inherent strengths and weaknesses, and the nature of the available information may further affect the value of particular techniques. The overall conclusions we have reached are based on all the analyses and factors presented herein taken as a whole and also on application of our own experience and judgment. Such conclusions may involve significant elements of subjective judgment and qualitative analysis. We therefore give no opinion as to the value or merit standing alone of any one or more parts of the material that follows. The opinion, the analyses contained herein, and all conclusions drawn from such analyses are necessarily based upon market, economic, and other conditions that exist and can be evaluated as of the date of this presentation, and on information available to GAH as the date hereof.

 

TABLE OF CONTENTS

 

 

I.

Scope of Primary Due Diligence ..........................................................

1

 

II.

Assessment of Hanover Direct, Inc. ......................................................

5

 

III.

Valuation ....................................................................................

23

 

IV.

Appendices ..................................................................................

35

 

SCOPE OF PRIMARY DUE DILIGENCE

 

•

Information related to Hanover’s history, background, and ownership including:

 

-

List of key milestones in the history of the business, including acquisitions and divestitures;

 

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Current capitalization table with details regarding the different types of equity and debt securities;

 

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Current corporate organizational chart;

 

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Copies of existing documents describing or evaluating the Company or its business plan, including The May 1, 2004 fair value appraisal of Hanover prepared by American Appraisal Associates; and

 

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Copies of letters of intent of parties who have contacted Hanover regarding a potential sale (i.e., buyers) or acquisition of Hanover and/or one or more of its subsidiary businesses.

•

Information related to Hanover’s products, product lines, and product sourcing including:

 

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Total stock keeping units;

 

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Top 20 items over time, by dollar volume and EBITDA (contribution-to-fixed);

 

-

List of major vendors by product category and function; and

 

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Copies of vendor contracts.

•

Information related to Hanover’s marketing operations including:

 

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Description of Hanover’s marketing department;

 

-

12- and 24-month buyer counts from 2001-2005 and 2006E; and

 

-

Customer list demographics, geographical distribution of customers, and frequency of customer contacts.

•

Information related to Hanover’s catalog and direct marketing operations including:

 

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Break out costs per catalog including paper, production/printing, postage, and pricing increase assumptions;

 

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Detailed review of five-year historical circulation history and 2006 estimate for each catalog title; and

 

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List of top 10 rental lists for each catalog title.

•

Information related to Hanover’s Internet operations including:

 

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Annual sales, order volume, and average order for the past five years and 2006 YTD; and

 

 

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Number of new names procured from the Internet by site over the last five years

•

Information related to Hanover’s retail operations including retail outlets, stores opened/closed, and annual financial results for the past five years.

•

Information related to Hanover’s order processing, fulfillment, and inventory including:

 

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Total orders, packages, and average order size by title and channel (catalog, Internet, telephone, retail outlet) 2003-2006;

 

-

Detail of shipping methods (e.g., facility, carrier), variable pick/pack, and shipping costs per order and per package for 2003-2006;

 

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Detail of shipping carriers including pieces shipped and average weight for fiscal 2003 through August 2006;

 

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Detail of payment methods (e.g., check, credit card) as a percentage of gross sales for 2001 through August 2006;

 

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Detail of returns/cancellations and rates for the past five years, including description of return policy for 2003-2006E;

 

-

Overview of Hanover’s call center/telemarketing operations;

 

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Average order turnaround time for 2001-2006E;

 

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Order fill rates for 2001-2006E;

 

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Back-order rates for 2003-2006E; and

 

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Sales for each product liquidation method 2003-2006E.

•

Information related to Hanover’s management information systems including:

 

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Overview of management information systems, including key hardware server platform and key software systems; and

 

-

Overview of management information system integration.

•

Information related to Hanover’s management team including:

 

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Biographies of key management personnel; and

 

-

Executive compensation detail of key managers, with breakout of salary and summary of options/warrants.

•

Information related to Hanover’s employees including:

 

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Key characteristics of Hanover’s workforce headcount, hourly vs. salaried, and breakdown by department/function/location;

 

-

Average workforce tenure and employee turnover rates;

 

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Average hourly wages and ranges;

 

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Impact of seasonality on employment levels;

 

 

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Pension plans and collective bargaining agreements; and

 

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Work force unionization contracts.

•

Information related to Hanover’s warehouse and office facilities capacity and expansion alternatives.

•

Historical financial information: 2003 – 2005, 2006E, and year-to-date results including:

 

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SEC Form 10-K for the years 2000-2005, Form 10-Q for the period ended September 30, 2005 and draft Form 10-Q for the period ended September 30, 2006;

 

-

Annual internal Hanover financial statements for the years 2004 and 2005;

 

-

Schedule of depreciation, amortization, and capital expenditures by dollar amount;

 

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Summary of equipment leases and related terms;

 

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Detailed breakout of cost of goods sold and operating expenses;

 

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Two years of consolidated monthly statements (2004-2005 and 2006 YTD), including balance sheets and income statements;

 

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Copy of the 2006 budget;

 

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One-time, non-recurring, and extraordinary expenses;

 

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Accountant’s letters to management regarding internal controls and company policies;

 

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Accounts receivable and accounts payable aging schedules and off-balance sheet assets and liabilities;

 

-

Book/market value of properties;

 

-

Tax and book basis of assets/stock; and

 

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Net operating loss (“NOL”) carry forwards.

•

Projected financial information for the fiscal years 2006 – 2009 including:

 

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Projected balance sheet and income statements and assumptions in support of these projections;

 

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Projected Hanover capital expenditures and depreciation; and

 

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Schedules detailing changes in Hanover EBITDA from 2006 through 2009.

•

Description of legal issues or actions involving the Company over the past five years.

•

List of intellectual property such as patents, trademarks, and licenses.

•

Discussions with management.

•

Review of publicly available information for selected public companies that are deemed to be generally comparable to Hanover.

 

•

Review of publicly available information for selected public companies that compete in the “catalog retail” industries that were not selected as being comparable to Hanover.

•

Review of publicly available information on selected merger and acquisition transactions for the last five years that involved targets deemed to be generally comparable to Hanover.

•

Hanover’s stock price trading history.

 

Outside the Scope of Goldsmith Agio Helms Due Diligence

 

•

Contact with employees or customers of Hanover.

•

Contact with suppliers of Hanover.

•

Independent review or business study of Hanover’s markets.

•

Asset (tangible or intangible) or liability appraisals.

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Contact with any state or federal regulatory agencies.

 

ASSESSMENT OF HANOVER DIRECT, INC.

 

Hanover Direct, Inc. (“Hanover” or the “Company”) is a leading specialty direct marketer with a diverse portfolio of home fashions and men’s and women’s apparel marketed via direct mail-order catalogs, websites, and retail outlets (“direct commerce”). All of these categories utilize the Company’s centralized purchasing and inventory management functions, its common systems platform, and its telemarketing, fulfillment, distribution, and administrative functions. The Company mailed approximately 174 million, 164 million, and 170 million catalogs for the years 2005, 2004, and 2003, respectively. The Company’s portfolio of home fashion and apparel catalogs and Internet websites include Domestications, The Company Store, Company Kids, Silhouettes, Clearance World, International Male and Undergear, and Scandia Down. Summary historical and projected financial statements are presented in Appendix A.

 

The following is a description of Hanover’s catalogs and product categories:

 

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The Company Store is a home fashions catalog focused on high-quality products that Hanover manufactures as well as other private label and branded home furnishings. Basic bedding lines are produced at the Company’s LaCrosse, Wisconsin factory.

 

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Exclusive designs and vibrant colors, along with a unique and sophisticated catalog presentation, gives The Company Store a strong identity within its market. Even as The Company Store website continued to grow with an increasing percentage of its revenue coming through this channel, catalogs remained the biggest catalyst for driving website orders in 2005.

 

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Demographics.

 

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Average household income - $73,000

 

•

Age range – 35 to 54

 

•

Homeowners – 80%

 

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Married – 70%

 

•

Presence of children – 31%

 

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Unit of sale. $155

 

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Gender. 79% female

 

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Source. 100% direct mail

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Company Kids is a catalog developed from a category offered in The Company Store catalog and has grown over the past four years to nine exclusive Company Kids mailings. The unique themes and full room views gives the Company Kids customer the opportunity to purchase the “entire room” including bed, bedding, storage, wall hangings, lamps, and rugs.

 

 

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Creative design and varied color pallets for the complete bed ensemble are developed by The Company Store’s own design staff and sourced around the world. These exclusive designs and vibrant color pallets remain the signature identity for this quality oriented, better-priced catalog and position both The Company Store and Company Kids as strong competitors in the direct home textile market.

 

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Demographics.

 

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Average household income - $73,000

 

•

Age range – 35 to 54

 

•

Presence of children – 90%

 

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Gender. 80% female

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Domestications is “America’s Authority in Home Fashions®.” For over 20 years Hanover has been and continues to be the value minded customer’s top-of-mind choice when shopping for the latest in home furnishings. Domestications targets the mid-tier marketplace with the primary focus on bedding for every taste and lifestyle, featuring unique and novel ideas, affordable luxury, hard to find problem solvers, and exclusive designs found nowhere else. The Company also offers a wide range of fashion and seasonal products for every other room of the house and even has great ideas for the backyard.

 

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Demographics.

 

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Average household income - $53,000+

 

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Age range – 35 to 55

 

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Product selects.

 

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Children’s products

 

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Bath

 

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Table linens

 

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Home furnishings

 

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Furniture

 

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Window treatments

 

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Bedroom accents

 

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Decorative accessories

 

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Unit of sale. $110

 

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Gender. 80% female

 

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Source. 100% direct mail (catalog)

 

•

Silhouettes is a moderate-to-better priced fashion catalog dedicated to woman’s styles starting at size 12W. The catalog carries the current trends in fashion along with core classics, seasonal favorites, and Silhouettes exclusives. Silhouettes carries a full range of apparel from boots to bathing suits, sleepwear to swimwear, and everything in between.

 

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Silhouettes core strengths include exclusive designs and manufacturing sourced around the world. Utilizing key manufacturing plants allows Silhouettes to control costs and ensure the quality of these designs, offering the customer a product of style and value.

 

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The Silhouettes catalog and website create a virtual department store, carrying something for every 12W plus-sized woman. The catalog continues to be the primary driver for website orders. In each of the past four years Silhouettes has enjoyed significant Internet sales growth. Improved on-site search capabilities and navigations have taken the tedium and frustration out of the search and have created a better virtual shopping experience, getting Silhouettes closer to its goal of being the customer’s best friend.

 

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Demographics.

 

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Average household income - $50,000+

 

.

24.5% have household income of $50,000 to $75,000

 

.

25.2% have household income greater than $75,000

 

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Age range – 42+

 

.

43.6% are between the ages of 35 and 54

 

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49.4% are 55 or older

 

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Most are homeowners

 

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77.6% reside in a single-family home

 

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15.2% live in an apartment

 

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Nearly 20% completed graduate school

 

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Marketing insight.

 

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In Management’s opinion, the Silhouettes list is an excellent prospecting vehicle for a variety of offers, including home décor, gifts, apparel and accessories, shoes, epicurean, general merchandise, financial, travel, insurance, publishing, and fundraisers.

 

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Unit of sale. $120

 

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Gender. 95% female

 

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Source. 100% direct mail (catalog)

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International Male and Undergear went through a key transitional year in 2005. The businesses have recently relocated to Hanover’s New Jersey headquarters, where new

 

management and a newly formed creative team have been charged with the ultimate goal of re-establishing the unique qualities of both brands and making them well-known to consumers. Fashion offerings have been increased and diversified, while the catalogs have been given a more modern look and feel to more accurately reflect these brands’ evolving image and solidify their niche in the men’s fashion and underwear business.

 

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International Male carries a full line of men’s apparel, from sportswear to dress clothing, outerwear to underwear, shoes and accessories, offering contemporary fashion at prices that represent value to the consumer. By updating its selection with a more eclectic mix of current designs, as well as a greater variety of internationally recognized brand names, Hanover has increased the brand’s appeal to new customers in its target demographic group. At the same time, the Company has continued to refine classic favorites and renew its core product lines to meet the demands of International Male’s more established customers.

 

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Undergear continues to be a market leader in the men’s underwear catalog and Internet business, remaining true to its origins as a “handbook of men’s underwear from around the world”. In addition to underwear and swimwear from globally renowned resources, Undergear today includes more and varied offerings such as loungewear and workout wear that cross over into the true fashion/sportswear arena of International Male, along with skincare lines that complement our commitment to a youthful look and feel. Undergear’s core strengths include the production of numerous exclusive styles and the continued expansion of its private label programs, recognized for their exceptional quality and value.

 

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Marketing insight – International Male.

 

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In Management’s opinion, the International Male list is an excellent prospecting vehicle for a variety of offers, including gift and home, high-tech/gadgets, publishing, fundraising, financial, apparel, and epicurean.

 

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Demographics – International Male.

 

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Average household income - $35,000 to $100,000

 

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Additional information – International Male.

 

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Unit of sale. $100

 

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Gender. 75% female

 

•

Source. 100% direct mail

 

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Marketing insight – Undergear.

 

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In Management’s opinion, the Undergear list is an excellent prospecting vehicle for a variety of offers, including gift and home, high-tech/gadgets, publishing, fundraising, financial, apparel, and epicurean.

 

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Demographics – Undergear.

 

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Average household income - $50,000 to $75,000

 

 

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Age range – 35 to 44

 

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Additional information – Undergear.

 

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Unit of sale. $70

 

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Gender. 84% female

 

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Source. 100% direct mail

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Scandia Down manufactures luxury European down comforters, pillows, and featherbeds from the Company’s LaCrosse, Wisconsin facility and distributes these products together with proprietary branded luxury sheeting, towels, and related accessories through its network of over 120 high-end retailers in North and South America. Scandia Down’s core growth strategy is focused on expanding distribution in select markets with key retailers, expanding product lines and categories, and developing sales and marketing support programs for licensed retailers. In August 2006, Scandia Down launched a business-to-consumer website with e-commerce capabilities allowing orders to be accepted directly over the Internet.

 

While Hanover’s back-end/fulfillment functions are centralized, the Company operates merchandising, purchasing, and catalog production separately for each of The Company Store/Company Kids, Domestications, Silhouettes and International Male/Undergear catalogs and websites. Each of Hanover’s specialty catalogs targets its market by offering a focused assortment of merchandise designed to meet the needs and preferences of each catalog’s customers. Through market research and ongoing testing of new products and concepts, each catalog has its own merchandise strategy, including appropriate price points, mailing plans, and presentation of its products. The Company is continuing its development of exclusive or private label products for a number of its catalogs to further differentiate the catalog’s identities.

 

Hanover’s catalogs range in size from approximately 48 to 108 pages with nine to 22 editions per year depending on the seasonality and fashion content of the products offered. Each edition may be mailed several times each season with variations in format and content. The Company employs the services of outside creative agencies or has its own creative staff that is responsible for the designs, layout, copy, feel, and theme of the catalogs. Generally, the initial sourcing of new merchandise for a catalog begins six to nine months before the catalog is mailed.

 

The Company operates commerce-enabled websites for each of its catalogs. The websites offer all of a particular catalog’s merchandise and more extensive offerings than any single issue of a print catalog. Customers can request catalogs and place orders for not only website merchandise, but also from any print catalog already mailed.

 

As of December 31, 2005, Hanover operated three outlet stores. These locations are used to clear mark-downs and liquidate slow-moving inventory. The Company opened one additional outlet store in Roanoke, Virginia in July 2006 and closed its store in Hanover,

 

Pennsylvania in February 2006. Two outlet stores were closed during 2005, one in Kenosha, Wisconsin and the other in Oshkosh, Wisconsin.

 

The Company operates three call centers in La Crosse, Wisconsin; Hanover, Pennsylvania; and York, Pennsylvania. All centers take in-bound calls from customers for the various catalogs to place orders. At the end of every sales call, upsells are offered.

 

•

The first offer is the Buyers’ Edge by United Marketing Group, a third-party money saving membership; this program was launched in October 2006. Employees receive incentive payments per membership sold with a quarterly sales contest featuring bonus payouts.

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The second offer is Hanover’s Buyer’s Club that applies to Domestications and Silhouettes providing regular customers with a discount for paying for an annual membership.

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The third offer is a private label credit card based on the catalog designation; employees receive spiffs per activation.

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The fourth offer is a featured item comprised of special items, sometimes overstocks, at a discounted price.

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All calls are recorded with regular monitoring to ensure compliance.

 

The La Crosse call center primarily takes calls for The Company Store and Domestications catalogs with representatives in sales, customer service, outbound, Internet, and commercial sales. The La Crosse facility currently employs approximately 500 people, inclusive of the representatives, training, and management staff. This call center recently introduced a commission sales initiative relative to The Company Store and Domestications order values.

 

The York call center primarily takes phone calls for the Company’s third-party businesses with representatives in sales, customer service, and Internet. Third-party clientele includes Improvements (expires August 2007), Gump’s (expired October 2006), Alsto’s (expires August 2007), Home Focus (expires August 2007), National Geographic, and National Geographic Webstore (expires May 2007). The Hanover facility currently employs 350 people inclusive of the representatives, training, information technology, and finance staff.

 

The Hanover facility primarily handles Hanover’s apparel lines including Silhouettes, Undergear, and International Male with representatives in sales, service, and Internet. The York call center currently employs 200 representatives.

 

Calls are routed through two switches located in La Crosse and Hanover. Domestications and Improvements are utilized to equalize volume between the centers. The operations groups forecast and schedule manpower to meet volume requirements. Local management handles day-to-day activities with leadership channeled centrally through to corporate headquarters.

 

 

History

The Company is the successor entity resulting from the 1972 merger of The Horn & Hardart Company, a restaurant company founded in 1911, and Hanover House Industries, Inc., founded in 1934. Hanover House initially operated as a chain of specialty retail women’s fashion. In 1950, it published its first catalog offering women’s fashion and by the end of the decade a majority of its revenues was derived from catalog sales.

 

The current Hanover reflects numerous acquisitions, divestitures, and financing transactions that are summarized below.

 

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Richemont. In the fall of 1991, NAR Group Limited gained control of the Company. NAR was a private investment holding company, a joint venture between the family of Mr. Alan G. Quasha, a former Hanover Chairman, and Compagnie Financiere Richemont A.G., a Swiss public company.

•

Gump’s. In May 1993, the Company acquired substantially all of the assets of Gump’s Inc., the San Francisco retailer and catalog marketer of exclusive gifts, for a total purchase price of $13.2 million, consisting of $6.9 million in cash and $6.3 million of Hanover common stock.

•

The Company Store. In August 1993, the Company acquired in Chapter 11 bankruptcy proceedings substantially all of the assets of Company Store Holdings, Inc., an upscale direct marketer of down comforters and other down and related products for the home, sold under The Company Store and Scandia Down names, for a total purchase price of $7 million, consisting of the issuance of $4.6 million of notes and $2.4 million of common stock.

•

Tweeds. In September 1993, the Company purchased all of the outstanding stock of Tweeds, a women’s fashion catalog, for a total purchase price of $8.8 million, consisting of the assumption of $5.1 million of liabilities, $0.1 million in cash, and $3.6 million of common stock. The Company discontinued the Tweed’s catalog in 1999; the Company licensed the Tweed’s name in 2006.

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The Safety Zone. In September 1993, the Company acquired 20% of the outstanding common stock of Aegis Safety Holdings, Inc. (“Aegis”), a direct marketer of safety and anti-hazard products through The Safety Zone catalog. In February 1995, the Company acquired the remaining 80% of the outstanding common stock through the issuance of 634,900 shares of a newly-created Series B Convertible Additional Preferred Stock; the new preferred stock had a stated value of $10 per share. Hanover sold The Safety Zone in 2001 as part of its sale of Improvements.

•

Blue Ridge Associates. In January 1994, the Company purchased for $1.1million a 50% interest in Blue Ridge Associates (“Blue Ridge”), a partnership that owned the Company’s apparel distribution center in Roanoke, Virginia. The remaining 50% interest was held by an unrelated third party. In December 1996, the Company decided

 

to consolidate this facility into its new Roanoke, Virginia distribution facility. In February 2000, the Company sold its partnership interest to the holder of the other 50% interest for $0.8 million.

•

Boston Publishing Company. In February 1994, Hanover acquired a 20% ownership interest in Boston Publishing Company, Inc. (“BPC”), the publisher of The Museum Collection and Finishing Touches in consideration for providing $3.0 million of secured working capital financing, a $0.75 million short-term loan and a $0.5 million convertible term loan. In August 1994, BPC filed for bankruptcy protection. In 1995, the Company received inventory and the customer mailing list of BPC in payment of its $1.2 million loan and subsequently realized $0.3 million upon disposition of these assets; the remaining assets were written off.

•

Regal Communications, Inc. During 1994, Hanover invested approximately $2.7 million in convertible debt securities of Regal Communications, Inc. (“Regal”). In September 1994, Regal filed for bankruptcy protection. In December 1995, a plan of reorganization was confirmed by the Bankruptcy Court and the Company recovered $0.8 million.

•

Improvements. In January 1995, the Company acquired substantially all of the assets of Leichtung, Inc., a direct marketer of wood-working and home improvement tools and related products sold under the Improvements and Leichtung Workshops names, for a purchase price of approximately $12.8 million in cash and the assumption of certain liabilities. In the first quarter of 1996, the Company sold the assets of the Leichtung Workshops catalog for $0.9 million in cash and short-term notes.

•

Tiger Direct. In February 1995, Hanover entered into an agreement to acquire certain securities of Tiger Direct, Inc. (“Tiger”), a direct marketer of computer software, peripherals, and CD-ROM hardware and software. In February 1995, the Company entered into a loan and security agreement with Tiger pursuant to which the Company provided a secured working capital line of credit to Tiger, up to a maximum of $3.0 million, which was loaned under such agreement. In September 1995, due to the continued deterioration of Tiger’s financial condition, the Company terminated the securities purchase agreement and sold the loan to a third party and received payment in full for the principal of the loan and interest to the date of sale.

•

Austad’s. In May 1995, the Company acquired 67.5% of the outstanding shares of Austad’s Holdings, Inc. (“Austad’s”), which owned The Austad Company (“TAC”), the publisher of the Austad’s catalog featuring golf equipment, apparel, and gifts, for a purchase price of $1.8 million in cash.

•

On February 16, 1996, former minority shareholders surrendered to Austad’s their Austad’s shares, amounting to 32.5% of the outstanding shares, and paid approximately $1.1 million in exchange for all the outstanding shares of AGS, Inc. (“AGS”), a South Dakota corporation formed by TAC to hold the existing retail assets and liabilities of TAC. In October 1999, the Company sold the remaining assets of its non-core Austad’s catalog.

 

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The Shopper’s Edge. In March 1999, Hanover, through a newly formed subsidiary, launched and promoted a discount buyers’ club to consumers known as “The Shopper’s Edge.” Effective December 1999, the Company sold its interest in The Shopper’s Edge subsidiary to an unrelated third party for a nominal amount based upon an independent appraisal.

•

On June 29, 2001, the Company sold assets and liabilities of the Company’s Improvements business to HSN, a division of USA Networks, Inc.’s Interactive Group for approximately $33 million. As part of this sale, the Company entered into a multi-year agreement to provide telemarketing and fulfillment services. This service agreement will terminate in August 2007.

•

On May 19, 2003 Chelsey Direct, LLC (“Chelsey”) acquired Richemont’s interest in the Company, which at that time consisted of 2,944,688 shares of common stock and 1,622,111 shares of Series B Participating Preferred Stock.

 

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Hanover was recapitalized in November 2003 which resulted in Chelsey acquiring control.

 

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On July 8, 2004, Chelsey Finance, LLC, (“Chelsey Finance”), a Chelsey affiliate, provided the Company with a $20.0 million junior secured credit facility. As part of this transaction, the Company issued to Chelsey 434,476 shares of common stock in payment of a waiver fee and Chelsey Finance received a 10-year warrant to purchase 30.0% of the fully diluted shares of Hanover common stock (then equal to 10,259,366 shares).

 

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On January 10, 2005, Chelsey purchased an aggregate of 3,799,735 shares of common stock from Mr. Basil Regan, Regan International Fund Ltd., and Regan Partners, L.P, constituting all of the common stock held by them. Mr. Regan had previously resigned from the Board of Directors on July 30, 2004.

 

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The Company received a proposal from Chelsey to acquire the shares of common stock that Chelsey did not already own for a cash purchase price of $1.25 per share in a letter dated February 23, 2006. The letter indicated Chelsey’s belief that Hanover should become privately owned due to the financial drain imposed by remaining public as well as the limited benefits of remaining public. The letter stated that Chelsey or an affiliate proposed to enter into a cash merger agreement with the Company and to commence a cash tender promptly after the execution of that agreement.

 

•

Shortly after receipt of the letter, the Board of Directors met and formed a special committee comprised of the three directors who were not Company employees or affiliated with Chelsey.

 

•

On May 25, 2006, the Company was advised that discussions with Chelsey and the special committee concerning Chelsey’s proposal had been terminated and as a result, the offer had been withdrawn.

 

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On March 14, 2005, the Company sold all of the stock of Gump’s to Gump’s Holdings, LLC, an unrelated third party, for $8.9 million, including a purchase price adjustment of $0.4 million, pursuant to the terms of a February 11, 2005 Stock Purchase Agreement. The Company recognized a gain of approximately $3.6 million in the first quarter of 2005.

 

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Chelsey, as the holder of all of the Series C Participating Preferred Stock (“Series C Preferred”), consented to the application of the sales proceeds to reduce the outstanding balance of the credit facility provided by Wachovia National Bank (“Wachovia”) in lieu of the current redemption of a portion of the Series C Preferred.

 

•

Chelsey expressly retained its right to require redemption of approximately $6.9 million of the Series C Preferred subject to Wachovia’s approval.

 

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After the sale, the Company continued as the guarantor of one of the two leases for the San Francisco building where the store is located (the Company was released from liability on the other lease). Gump’s Holdings was required to use its commercially reasonable efforts to secure the Company’s release from the guarantee within a year of the closing. As of October 31, 2006, there are $5.7 million (net of $0.5 million in expected sublease income) in lease commitments for which the Company is the guarantor.

 

•

Based on its evaluation, the Company has concluded it is unlikely any payments will be required under the guarantee, thus it has not established a guarantee liability as of the March 14, 2005 sale date or as of September 30, 2006.

 

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The Company entered into a direct marketing services agreement with Gump’s Holdings to provide telemarketing and fulfillment services for the Gump’s catalog and direct marketing businesses for 18 months. This agreement expired in October 2006 and was not renewed.

•

Effective June 1, 2006, the Company entered into an agreement with the National Geographic Society to terminate the agreement between the parties for product distribution and telemarketing services effective no later than May 30, 2007. The Company’s services agreement with Improvements will expire in August 2007.

 

Performance

Hanover has struggled financially and operationally during the past several years. In 2004 the Company installed a new management team and secured additional financing that alleviated the capital constraints that had previously hampered its business. In the last half of 2004, Hanover was able to increase inventory levels to service its customer demand and begin increasing catalog circulation. This led to increased sales and net income of nearly $5 million. The Company also decided to consolidate its catalog operations into one facility located in New Jersey and consolidate its distribution function into the Roanoke, Virginia distribution center because of capacity constraints at the LaCrosse facility and lower shipping costs available from the Roanoke facility.

 

 

During the first half of 2005 the Company experienced positive trends in both revenues and profits compared to 2004. These improvements, however, reversed starting in the third quarter of the year, which resulted in lower profits in the fourth quarter of the year.

 

•

Demand and customer response in the The Company Store catalog, which had been Hanover’s strongest catalog for the last several years, began a downward trend late in the second quarter of 2005 that continued throughout the remainder of the year. While the Company has hired a new President for The Company Store, Hanover expects this trend to continue for some time. The Company Store also suffered from higher merchandise costs and catalog expenses that also adversely affected its results. Domestications saw its demand increase markedly but experienced inventory problems, exacerbated in part by the larger-than-projected demand, which led to higher backorder levels and customer cancellations that adversely affected its results. Silhouettes had stronger revenues and profits throughout the year. The men’s business experienced lower revenues and profits for the year after it went through a relocation and installation of a completely new management team.

•

On November 9, 2004, the Company decided to relocate its International Male and Undergear catalog operations to its offices in New Jersey. The Company completed the relocation on February 28, 2005. The relocation was done primarily to consolidate operations, reduce costs, and leverage its catalog expertise in New Jersey.

 

-

The Company accrued a total of $0.9 million in severance and related costs during the fourth quarter of 2004 associated with the elimination of 32 California based full-time equivalent positions.

•

The Company was also adversely affected by diminished productivity in its distribution function brought on by the consolidation of the LaCrosse distribution facility into Hanover’s Roanoke distribution facility. This reached a head in the fourth quarter, the Company’s busiest quarter, when high employee turnover in Roanoke and space constraints brought on by larger-than-expected inventory levels both in Hanover’s catalogs and its third-party business-to-business customers led to diminished productivity. The Company’s 2005 results were also hurt by increasing costs including paper and product shipping costs.

 

-

The LaCrosse fulfillment center and the storage facility were closed in June 2005 and August 2005, upon the expiration of their respective leases. The Company substantially completed the consolidation into the Roanoke, Virginia fulfillment center by the end of June 2005.

 

-

The Company has incurred approximately $0.8 million in facility exit costs from the date of the announcement through July 1, 2006. The Company accrued $0.5 million in severance and related costs during 2004 associated with the LaCrosse operations and the elimination of 149 full and part-time positions, of which 96 employees have been or are being provided severance benefits by the Company.

 

 

-

Since the consolidation of the fulfillment centers, the Company’s Roanoke fulfillment center has experienced high levels of employee turnover and lower productivity that has negatively impacted fulfillment costs and the Company’s overall performance. This trend of high levels of employee turnover and lower productivity continued through the first half of fiscal 2006 and is expected to continue further into 2006.

•

Hanover’s 2005 results from continuing operations were positively impacted by a number of expense/income items outside of normal operations that provided a net benefit in 2005. As set forth in the table below, in 2004 the Company had a number of expense items that adversely affected its results in that year by approximately $5.7 million. In 2005, some of these items, principally a $4.5 million reserve that had been established for post-employment benefits for a former chief executive officer, were reversed and the Company had a net benefit from these items that improved 2005 results by over $1.2 million. A summary of these items incurred during year to date 2006, 2005, and 2004 are set forth below (figures are in thousands).

 

 

 

 

 

 

 

LTM

Non-Operating Items

 

2004

 

2005

 

30-Sep-06

Severance and termination costs

 

$          2,607

 

760

 

760

Special charges

 

1,684

 

(69)

 

(76)

Legal and audit fees related to restatement

 

617

 

2,559

 

841

Class action litigation reserve

 

535

 

-

 

-

Facility exit costs

 

201

 

-

 

-

Rakesh Kaul accrual

 

196

 

(4,488)

 

-

Net (benefit) expense

 

$          5,840

 

$        (1,238)

 

$          1,525

 

 

During the first nine months of 2006, net revenues increased $16.0 million (5.6%) for the 39-week period ended September 30, 2006 to $302.8 million from $286.8 million for the first nine months of 2005. This increase was primarily driven by an increase in catalog circulation levels. In addition, net revenues grew because of higher postage and handling rates, which we put into effect to offset an increase in United States Postal Service (“USPS”) rates that occurred in early January 2006. These increases were partially offset by lower average order sizes. Hanover experienced higher demand in our Domestications and Silhouettes catalogs, lower demand in The Company Store catalog and flat demand in our men’s division which consists of the International Male and Undergear catalogs.

 

•

During the first nine months of 2006, income before interest and income taxes (“EBIT” or “operating income”) decreased by approximately $11.2 million to $3.3 million from $14.5 million in the first nine months of 2005. The principal factors which negatively impacted the operating results for the nine months of 2006 included the following items.

 

–

The continuation of diminished productivity in the Company’s distribution center, which began in the fall of 2005 and has led to higher product fulfillment costs.

 

 

–

Higher outbound merchandise shipping costs caused by the bankruptcy of a consolidator utilized by the Company to deliver packages into the USPS system in mid March 2006, which caused the Company to utilize more expensive methods of delivery within the USPS system. While we expect this bankruptcy will continue to significantly increase our merchandise shipping costs for the remainder of 2006, the incremental increase in outbound merchandise shipping costs will diminish over the second half of the year.

 

–

Higher catalog paper costs, which started in the fall of 2005.

 

–

Higher general and administrative expenses due to the reversal in September 2005 of a $4.5 million accrual related to Rakesh Kaul, a former CEO who pursued claims against the Company.  

•

The Company reported a net loss applicable to common shareholders of $2.2 million, or $0.10 basic and diluted net loss per share, for the 13- weeks ended September 30, 2006 compared with net income applicable to common shareholders of $6.6 million, or $0.30 basic earnings per share and $0.20 diluted earnings per share, for the comparable period in 2005.

 

–

The decrease in net income (loss) applicable to common shareholders was primarily a result of the following issues.

 

•

A decline in operating profit primarily driven by higher outbound merchandise shipping, product fulfillment, catalog paper and postage costs.

 

•

Higher general and administrative expenses due to the reversal in September 2005 of a $4.5 million accrual related to Rakesh Kaul, a former CEO who pursued claims against the Company.

 

-

Net income was favorably impacted by the items set forth below.

 

•

Lower product costs due to improved sourcing of merchandise.

The Company generates the majority of its sales from two titles – The Company Store and Domestications. In 2005, The Company Store (specifically its mail order operations) generated $131.5 million of net merchandise sales, or nearly 40% of Hanover’s total (excluding Gump’s). The Company Store also has a retail presence and American Down & Textile (often referred to as “AD&T), both of which generate sales that are not included in the above figure.

 

•

AD&T is the manufacturing arm of The Company Store. It is located in LaCrosse, Wisconsin and manufactures comforters and other down products which represent approximately 30% of The Company Store’s business. In addition it manufactures all of Scandia Down’s down products. A small percentage of AD&T’s volume, approximately 2%, is production for third parties.

 

At the EBITDA level The Company Store is even more important to Hanover. In 2005 it generated EBITDA of $12.0 million, nearly 43% of the Company’s total EBITDA,

 

excluding Gump’s, non-recurring items, and overhead. In 2003 and 2004 this figure was greater than 70%.

 

Despite its leading role in the Company’s economic performance, The Company Store has been negatively affected by a combination of issues in the recent past.

 

•

This segment of the home fashions business has become extremely competitive, with pressure coming from both higher-end companies and discounters like Target and Wal-Mart, as well as from other Internet competitors.

•

The comforter business and solid bedding have become more commoditized, leaving The Company Store at risk in these areas. In addition, management believes that The Company Store’s offer and presentation had become stale under previous management; it was also severely impacted by increased paper and shipping costs, as well as increases in the cost of down fill.

•

Due to heightened competition price increases to offset the escalating cost of key inputs have not been available. Importantly, the higher costs have resulted in a higher break-even point for catalog circulation, which reduced profitable mailing lists, leading management to reduce circulation.

•

The Company has changed management at The Company Store and is in the process of improving the offer, both in terms of merchandise and presentation, and it has been investing in Internet marketing. These initiatives appear to have stabilized the business.

•

Senior Hanover management believes that direct sourcing will be particularly helpful for The Company Store.

 

Domestications has consistently accounted for approximately one-third of Hanover’s net merchandise sales over the past three years (excluding Gump’s sales) and in 2005 generated net merchandise sales of $107.5 million. This brand, however, has generated low profits during this time frame, and while its performance improved in 2005, Domestications was still able to produce only $2.5 million in EBITDA last year.

 

The other large brand for Hanover is Silhouettes, which posted net merchandise sales of just under $50 million in 2005 and contributed $6.2 million of EBITDA. For the past three years Silhouettes has generated 14%-15% of Company net merchandise sales (exclusive of Gump’s) and roughly one-fifth of corporate EBITDA (again, excluding Gump’s, non-recurring items, and overhead).

 

The other catalog titles’ financial performances are summarized below.

 

•

Total Men’s. The combined International Male and UnderGear businesses generated $20.0 million in net merchandise sales in 2005, down from $23.4 million in 2004 and $24.6 million in 2003. The operation has seen its profitability decline as well. Total

 

Men’s EBITDA dropped from $1.7 million in 2003 to $1.2 million in 2004 and $0.7 million in 2005.

•

Keystone. Keystone Internet Services, LLC (“Keystone”) was established in 1997 by Hanover. Keystone provides business-to-business fulfillment, call center, information technology, distribution, and related services. Fulfillment sales (which in the Company’s statements are referred to as net merchandise sales) through Keystone exceeded $15 million in 2005, up sharply from $9.5 million in 2004 and $8.5 million in 2003. Profitability at Keystone has turned around over the last three years. In 2003 and 2004 Keystone reported negative EBITDA of $4.4 million and $3.2 million, respectively; in June of 2005, however, Improvements’ contract was renegotiated and 2005 EBITDA totaled $0.6 million.

•

Scandia. While Scandia is often included as part of The Company Store, on a stand-alone basis it represents a strong niche business. Net merchandise sales have grown from $3.3 million in 2003 to $4.3 million in 2004 and $5.2 million in 2005. These incremental sales dollars have contributed significantly higher profits – in 2003, Scandia generated $0.6 million in EBITDA; in 2005, this figure was $1.2 million.

•

Outlets. The Company uses its outlet stores to clear mark-downs and liquidate slow-moving merchandise. Including The Company Store outlets, Hanover generated $3.8 million in net merchandise sales in 2005, down from $4.6 million in 2004 and $4.9 million in 2003. The Company’s outlets have consistently lost money during the past three years, with EBITDA dropping to negative $0.5 million in 2005.

•

Membership.

 

-

Third-Party Membership Programs. The Company markets and offers a variety of membership programs to its catalog customers through Hanover’s call centers when they call to place an order. Hanover also offers membership programs on its websites. The membership programs offer members discounts on a wide variety of goods and services. Initially, prospective members participate in a 30-day trial period that, unless canceled, is automatically converted into a one-year membership. Memberships are automatically renewed at the end of each year unless canceled by the member.

 

•

Until March of 2006, Hanover marketed membership programs provided by Vertrue. After the expiration of the agreement with Vertrue, the Company began offering similar membership programs provided by Encore Marketing International (“Encore”) under a two-year agreement. The economic terms of the Encore program were more favorable to the Company than those under the Vertrue agreement. In fact, the terms were so favorable that Encore subsequently asked for relief from Hanover. While the pricing structure was attractive to the Company, Encore was not providing Hanover with the deliverables it was expecting. As a result, this relationship was terminated, and Hanover has contracted with United Marketing Group (“UMG”).

 

 

-

Buyers’ Club. Hanover customers may purchase memberships in a number of the Company’s catalog Buyers’ Club programs for an annual fee. The Buyers’ Clubs offer members merchandise discounts or free delivery and service charge, advance notice of sales, and other benefits. The Company uses Buyers’ Club programs to promote catalog loyalty, repeat business, and to increase sales.

 

-

Membership programs are extremely profitable for the Company. In fact, in 2005 membership income of $10.7 million exceeded operating cash flow from all other Hanover brands except The Company Store. Membership income totaled $7.0 million in 2004.

 

Challenges

•

In response to the discovery during the second half of 2004 of errors in the Company’s accounting treatment of certain items, it was determined in the third quarter of 2004 that the Company needed to restate previously filed financial statements (“Restatement”). Shortly thereafter, the audit committee of the Board of Directors launched an independent investigation relating to the Restatement and other accounting-related matters and engaged independent counsel to conduct the investigation. The Company was notified in January 2005 by the Securities and Exchange Commission (“SEC”) that it was conducting an informal inquiry into the Company’s financial results and financial reporting since 1998. On October 20, 2005, the audit committee dismissed KPMG LLP (“KPMG”) as the Company’s independent auditors and thereafter engaged Goldstein Golub Kessler LLP (“GGK”). GGK completed its audit of the Company’s 2004, 2003, and 2002 fiscal year-end financial statements and its review of the Company’s quarterly financial statements for the third fiscal quarter of 2004 and the first three quarters of 2005 in February of 2006. On February 21, 2006, the Company filed the past due periodic reports with the SEC. Since those filings, the Company has filed its periodic reports on a timely basis.

•

As a result of the going-private proposal discussed above, three substantially identical complaints have been filed against the Company, Chelsey, and each of the Company’s directors. In each complaint, the plaintiffs challenge Chelsey’s going-private proposal and allege, among other things, that the consideration to be paid in the going private proposal was unfair and grossly inadequate. In each complaint, plaintiffs seek class action certification, preliminary and permanent injunctive relief, rescission of the transaction if the offer is consummated, and unspecified damages.

 

-

The Company believes that the complaints are without merit and intends to defend its interests vigorously.

•

The Company was involved in four lawsuits instituted by former employees arising from the Company’s denial of change in control (“CIC”) benefits under compensation continuation plans following the termination of employment. Two of these cases have been settled and two of these cases remain pending.

 

 

-

The Company believes that it properly denied CIC benefits with respect to each of the two former employees and that it has meritorious defenses in each of the cases and plans a vigorous defense.

 

-

In addition, the Company is involved in various routine lawsuits of a nature that is deemed customary and incidental to its businesses. In the opinion of management, the ultimate disposition of these actions will not have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

 

Prospects

According to senior management, each of Hanover’s titles faces strong competition in each of their respective markets and new competitors are entering on a regular basis. With the growth of the Internet consumers can more easily compare pricing and quality of merchandise from a wide variety of retailers. This is putting downward pressure on retail prices. The Company exchanges or rents customer lists from many of its competitors when sending out prospecting catalogs. Heightened competition increases the risk that some (or many) of these providers will no longer share their lists with Hanover. The following list highlights various competitors by catalog title.

 

•

The Company Store

 

-

Linen Source

 

-

Garnett Hill

 

-

Pottery Barn

 

-

Lands’ End

•

Domestications

 

-

Brylane Home

 

-

Wal-Mart

 

-

Target

•

Silhouettes

 

-

Lane Bryant

 

-

Jessica London

 

-

Roamans

 

-

Willow Ridge

•

Men’s

 

-

J. Crew

 

-

Blair

 

-

Bachrach

 

In addition to strong competition, in 2007 the Company will face significantly higher postage costs due to the USPS’s anticipated rate increases ($5.0 million higher than 2006), increased expenses associated with Sarbanes Oxley compliance initiatives (estimated at

 

$3.0 million in 2007 and approximately $1.5 million per year thereafter), a $3.2-million reduction to EBITDA due to the change in third-party upsell providers and the associated accounting treatments, as well as the loss of the third-party fulfillment revenues generated through services provided to Gump’s, the National Geographic Society, and Improvements which will negatively impact earnings by an anticipated $2.0 million.

 

Partially offsetting these challenges will be lower printing and pre-press costs due to new contracts entered into in 2006 (anticipated savings – $3.7 million) and plans to lower merchandise costs by 90 basis points (anticipated savings – $2.9 million) through the use of global sourcing and a new China buying office being established (at a cost of $0.4 million). In addition, management is assuming improved productivity in the Company’s distribution center and greater capacity, which will be realized through the elimination of third-party fulfillment services (anticipated savings – $1.5 million).

 

Management expects Hanover’s brands to grow in the low- to mid-single-digit range going forward. Growth is projected to come from both increases in circulation and a significant increase in Internet spending (of $2.5 million) on key-word and trademark searches and Netplus Internet management services.

 

 

VALUATION

 

Methodologies

 

In determining the fair market value of the enterprise value and the equity value of Hanover, we performed valuation analyses of the Company using the following methods:

 

•

An analysis of Hanover’s projected future cash flows, discounted back to present value at a rate appropriate for the relative risk of achieving these cash flows;

•

An analysis of market prices and resulting valuation multiples for publicly traded companies engaged in business activities that may be considered comparable to those of Hanover; and

•

An analysis of transaction prices and resulting valuation multiples for selected acquisitions that have been completed where the acquired company participated in industries with standard industrial classification (“SIC”) codes of 7331 (direct mail advertising services), 5719 (miscellaneous home furnishings stores), 5611 (men’s and boys’ clothing stores), and 5961 (catalog and mail-order houses).

 

All analyses using stock price data have been prepared using stock prices as of the close of trading on October 30, 2006.

 

Valuation Summary


We conclude that the range of fair market value of Hanover Direct, Inc., on an enterprise basis, is $64 to $67 million.

 

Implied Equity Value Range

(dollars in millions)

 

 

Low

High

Enterprise Value

$ 63.5

$ 67.0

Net debt1

110.0

110.0

GAH Adjustments

(22.3)

(23.8)

Equity value

(24.2)

(19.2)

 

 

We conclude that the range of fair market value of Hanover Direct, Inc., on an equity basis, is -$24 to -$19 million.1

_________________________

1 Assuming that as of September 30, 2006 the Company had $1.493 million of Wachovia Tranche A term loans, Wachovia revolver of $15.556 million, Chelsea Capital facility of $20.0 million, current capital lease obligations of $0.338 million, preferred stock of $72.689 million, less cash and cash equivalents of $0.061 million on its balance sheet.

 

Discounted Cash Flow Analysis

 

ASSUMPTIONS

 

•

Management estimates for the years 2006 through 2009.

•

Terminal year earnings before interest, taxes, depreciation, and amortization (“EBITDA”) multiples of between 6.5x and 8.0x.

•

Weighted average cost of capital (“WACC”) of 21.4%.

•

Detailed calculations are presented in Appendix B.

 

ENTERPRISE VALUE RESULTS

 

 

 

WACC

 

 

 

20.4%

20.9%

21.4%

21.9%

22.4%

Average

 

6.5

$ 38.6

$ 38.1

$ 37.7

$ 37.2

$ 36.8

$ 37.7

EBITDA

7.0

41.1

40.6

40.1

39.6

39.2

40.1

Multiple

7.5

43.6

43.1

42.6

42.0

41.5

42.6

 

8.0

46.1

45.5

45.0

44.4

43.9

45.0

 

 

 

Guideline Public Company Analysis

 

METRICS

 

•

Time frame

 

-

Projected fiscal year ended December 31, 2006

 

-

Latest 12-months ended September 30, 2006

•

Valuation multiples

 

-

Earnings before interest and taxes (“EBIT”)

 

-

Earnings before interest, taxes, depreciation, and amortization (“EBITDA”)

 

-

Total assets

•

Guideline companies analyzed

 

-

Blair Corporation

 

-

Blyth, Inc.

 

-

Bed Bath & Beyond, Inc.

 

-

Cabela’s, Inc.

 

-

Charming Shoppes, Inc.

 

-

Sharper Image, Inc.

 

-

Yankee Candle Company, Inc.

•

Public companies considered, but not included, in comparable company analysis

 

-

Bebe Stores, Inc.

 

-

Casual Male Retail Group, Inc.

 

-

Dover Saddlery, Inc.

 

-

Hartmarx Corp.

 

-

J. Crew, Inc.

 

-

RedEnvelope, Inc.

 

-

Under Armour Inc.

 

-

United Retail Group, Inc.

•

Detailed financial analyses are presented in Appendix C.

 

RESULTS2

 

Valuation Summary

 

Hanover Direct

 

Multiple

 

Enterprise Value

Projected 12-months ended December 31, 2006

 

 

 

 

 

 

EBIT

 

 

 

 

$ 5.6

 

12.5

 

$ 69.6

EBITDA

 

 

 

 

8.0

 

9.3

 

73.8

 

 

 

 

 

 

 

 

 

 

Latest 12-months ended September 30, 2006

 

 

 

 

 

 

EBIT

 

 

 

 

7.5

 

11.3

 

84.4

EBITDA

 

 

 

 

10.0

 

6.9

 

69.0

Total assets

 

 

 

127.9

 

0.4

 

55.1

 

 

 

 

 

 

 

 

 

 

Implied Values Based On

 

 

 

 

 

Enterprise Value

 

 

 

 

 

Low

 

 

 

$ 69.6

Fiscal year ending December 31, 2006

 

Median

 

 

 

71.7

 

 

 

 

 

High

 

 

 

73.8

 

 

 

 

 

Low

 

 

 

55.1

Latest 12-months ended September 30, 2006

 

Median

 

 

 

69.0

 

 

 

 

 

High

 

 

 

84.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Range

 

 

 

Enterprise Value

 

 

 

 

 

Median

 

 

 

$ 69.6

 

 

 

 

 

Mean

 

 

 

70.4

 

 

 

_________________________

2 December 31, 2006 earnings are applied to median multiples from guideline companies analyzed. September 30, 2006 earnings are applied to low multiples from guideline companies analyzed.

 

Precedent Transaction Analysis

 

METRICS

 

•

Total of 56 transactions for which financial information is publicly available since May 1, 2000 in SIC codes of 7331 (direct mail advertising services), 5719 (miscellaneous home furnishings stores), 5611 (men’s and boys’ clothing stores), and 5961 (catalog and mail-order houses).

•

Time frame

 

-

Projected 12 months ended December 31, 2006

•

Valuation multiples

 

-

EBITDA

 

-

EBIT

•

See Appendix D for a detailed summary of included transactions.

 

RESULTS3

 

(figures in millions)

Hanover Direct

Selected Multiple

Enterprise Value

Fiscal year ending December 31, 2006 EBIT

$ 5.6

11.1

$         62.0

Fiscal year ending December 31, 2006 EBITDA

8.0

7.7

61.5

 

 

 

_________________________

3 Based on mean valuation multiples derived from precedent transactions.

 

Analysis of Previous Offers

 

METRICS

 

•

Seven offers in the past five years to acquire the assets of Hanover, the common and preferred shares of Hanover, and/or one of its subsidiary companies.

•

Two of the seven offers were excluded from our analysis.

 

-

Palmetto Partners LLC offer dated March 4, 2004 (understanding of offer inconsistent with valuation).

 

-

Carey Property Advisors offer dated March 29, 2004 (sale and lease back of distribution in Roanoke, VA).

•

Valuation multiples

 

-

Estimated EBITDA

•

These acquisition proposals are summarized in greater detail in Appendix E.

 

RESULTS

 

 

Palmetto 10/19/06

Crosstown 4/23/04

Avalon 03/01/04

Charming 04/28/04

Pipkorn 04/30/04

Total consideration

$ 109.5

$22.0 - $24.0

$     10.5

$    22.0

$      2.3

Estimated EBITDA

14.5

4.4 - 4.8

2.3

4.3

0.6

Implied EBITDA multiple

7.6x

5.0x

4.6x

5.1x

3.6x

Fiscal year ending December 31, 2006 EBITDA

8

8.0

8.0

8.0

8.0

Enterprise value

$ 60.6

$ 40.1

$ 36.6

$ 41.0

$ 28.9

 

 

 

 

 

 

Low

$ 28.9

 

 

 

 

Median

40.1

 

 

 

 

High

60.6

 

 

 

 

 

 

 

Valuation Adjustments

 

•

Series C Participating Preferred Stock

 

-

Calculate the present value of the Series C Participating Preferred Stock (“Series C Pfd”) assuming.

 

-

Discount rates equal to Hanover’s calculated weighted average cost of capital used in the DCF analysis (i.e., 21% to 23%).

 

-

October 1, 2008 redemption date.

 

-

Implication

 

•

Present value of projected future Series C Pfd obligation equals $48.9 million to $50.4 million.

 

•

These present value figures are less than the recorded value on the Company’s balance sheet by $22.3 million to $23.8 million.

 

•

These calculations are set forth in Appendix F.

 

•

Concluded enterprise values are unaffected; concluded equity values increase.

 

-

Observation

 

•

The discount rates used here to calculate the present value of the Series C Pfd are not the only discount rates that could be applied. The 21% to 23% range is consistent with the weighted average costs of capital used in the DCF methodology. Given Hanover’s financial challenges, and given the magnitude of this obligation relative to the overall value of the Company, it is appropriate, in our opinion, to use these kinds of equity-like discount rates.

 

•

The risks that the holder of the Series C Pfd faces are tantamount to equity risks, under the financial circumstances, and as such this instrument should be valued with equity rates of return.

 

•

If the situation was different, i.e., if Hanover’s financial performance was significantly stronger and the ability to retire the Series C Pfd at its fully accrued $72.7 million was much less in doubt, then a lower discount rate would be appropriate to apply. Appendix F sets forth a range of such discount rates and the resulting present value for the Series C Pfd.

 

•

Ultimately, the use of higher discount rates reduces the present value of the Series C Pfd. Because debt and preferred stock (which is senior to common stock and has liquidation preference) are subtracted from enterprise value when establishing equity value, a lower preferred stock valuation leads, by definition, to a higher common stock valuation. In our opinion this is another reason to use the discount rates that we did.

 

•

Net operating losses

 

-

Treat the Company’s net operating loss (“NOL”) carryforwards as a separate asset that has discrete value.

 

-

Project future Hanover profits and determine when NOLs will be available for use to reduce future income taxes.

 

-

Discount rates equal to Hanover’s calculated weighted average cost of capital used in the DCF analysis (i.e., 21% to 23%).

 

-

Implication

 

•

Present value of projected NOL tax shield equals $3.2 million to $3.6 million (see Appendix G for a detailed summary of these calculations).

 

•

Concluded enterprise and equity values increase.

 

-

Observation

 

•

As with the Series C Pfd, the selection of discount rates with which to value NOLs is subject to debate. In this case, we have again used the same discount rates that were used in the DCF analysis, and for the same reasons that we used these rates to value the Series C Pfd. The ability to utilize net operating loss carryforwards hinges on the Company’s ability to generate positive pretax income. As management’s projections show, Hanover is not expected to earn positive pretax income for some time. The ability to realize value from the NOL is subordinate to interest payments, for example, which, in our opinion, makes the use of equity-like discount rates appropriate.

 

•

Elimination of unprofitable titles

 

-

Management is forecasting significant operating losses for certain of the Company’s titles in 2006 and for the next three years. At the EBITDA level these losses are estimated to equal $1.2 million in 2006.

 

-

Assuming for the sake of analysis that these titles were excluded from management’s projections, and that for valuation purposes the 2006 losses were treated as non-recurring, then it is reasonable to assume that the Company’s overall value would be increased.

 

-

Appendix H presents these hypothetical calculations.

 

-

Implication

 

•

Increased EBITDA and EBIT translate directly into higher enterprise values; increased net income translates into higher equity value.

 

•

Applying multiples derived from the guideline public company and precedent M&A transactions methodologies to this $1.2 million restatement produce an increase in enterprise and equity value of $5.3 million to $8.4 million.

 

•

Concluded enterprise and equity values increase.

 

 

Valuation Adjustment Summary

 

-

Series C Participating Preferred Stock

 

•

Enterprise value – no impact

 

•

Equity value – $22.3 to $23.8 million

 

-

Net operating losses

 

•

Enterprise value – $3.2 to $3.6 million

 

•

Equity value – $3.2 to $3.6 million

 

-

Elimination of unprofitable titles

 

•

Enterprise value – $5.3 to $8.4 million

 

•

Equity value – $5.3 to $8.4 million

 

-

Total adjustments

 

-

Enterprise value – $8.5 to $12.0 million

 

-

Equity value – $30.8 to $35.8 million

 

Hanover Direct, Inc. Common Stock

 

The Company’s common stock’s trading history is summarized in Appendix I. It is important to recognize that Hanover’s common stock does trade publicly, and that all else being equal, a publicly traded security’s value is generally consider the definition of fair market value, on a marketable minority basis. In the case of Hanover, however, it is our opinion that the Company’s common stock price is not indicative of fair market value, which we have demonstrated in the foregoing analyses, and that it is trading on a speculative, as opposed to an economic, basis. In our opinion the trading behavior of the stock – sharp price swings on low volumes, extremely thin trading, having been halted for several weeks – all suggest that investors are speculating on potential future financial gains and not on the Company’s fundamentals.

 

 

 

APPENDIX A

Hanover Direct, Inc.

Historical Financial Statements

For The Years Ended December 31, 2001 - 2005 And For The 12-Month Period Ended September 30, 2006

(figures in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LTM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ended

INCOME STATEMENT

2001

 

2002

 

2003

 

2004

 

2005

 

30-Sep-06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales

 

$    532.165

 

$     456.990

 

$    370.096

 

$    360.526

 

$    407.442

 

$  423.449

Cost of goods sold

339.556

 

290.383

 

233.552

 

216.940

 

252.991

 

267.592

 

 

 

Gross profit

192.609

 

166.607

 

136.544

 

143.586

 

154.451

 

155.857

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

General and administrative expenses

56.727

 

53.322

 

42.657

 

40.374

 

32.562

 

35.956

 

Selling expenses

141.140

 

105.448

 

89.722

 

90.903

 

101.956

 

111.629

 

Depreciation and amortization

7.430

 

5.650

 

4.093

 

3.312

 

2.866

 

2.366

 

Write-down of inventory of discontinued catalogs

-

 

-

 

-

 

-

 

-

 

-

 

Special (charges)/credits

11.277

 

4.398

 

0.215

 

1.684

 

(0.069)

 

(0.062)

 

 

Total operating expenses

216.574

 

168.818

 

136.687

 

136.273

 

137.315

 

149.889

 

 

 

Reported operating income (EBIT)

(23.965)

 

(2.211)

 

(0.143)

 

7.313

 

17.136

 

5.968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other/non-recurring items

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

6.529

 

5.477

 

11.715

 

5.105

 

8.146

 

9.348

 

Gain on sale of Gump’s business

-

 

-

 

1.215

 

2.967

 

2.996

 

-

 

Gain on sale of Kindig lane property

1.529

 

-

 

-

 

-

 

-

 

-

 

Gain on sale of improvements business

23.240

 

0.570

 

1.911

 

-

 

-

 

-

 

 

Total other items

24.769

 

0.570

 

3.126

 

2.967

 

2.996

 

-

 

 

 

Pretax income

(5.725)

 

(7.118)

 

(8.732)

 

5.175

 

11.986

 

(3.380)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

0.120

 

3.791

 

11.328

 

0.174

 

0.029

 

-

 

 

 

Net income

$      (5.845)

 

$    (10.909)

 

$    (20.060)

 

$        5.001

 

$    11.957

 

$      (3.380)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

$        0.120

 

$         3.791

 

$      11.328

 

$        0.174

 

$        0.029

 

$             -

 

Interest expense

6.529

 

5.477

 

4.515

 

5.105

 

8.146

 

9.348

 

Discontinued operations

-

 

-

 

-

 

-

 

-

 

-

 

Special (charges)/credits

11.277

 

4.398

 

1.308

 

1.684

 

(0.069)

 

(0.076)

 

Severance and termination costs

-

 

-

 

0.725

 

2.607

 

0.760

 

0.760

 

Facility exit costs

-

 

-

 

-

 

0.201

 

-

 

-

 

(Gains)/losses from litigation

-

 

-

 

(3.300)

 

1.152

 

(1.929)

 

0.841

 

 

Total adjustments

17.926

 

13.666

 

14.576

 

10.923

 

6.937

 

10.873

 

 

 

Adjusted EBIT

$    (12.688)

 

$        2.187

 

$      (1.410)

 

$      12.957

 

$    15.898

 

$         7.493

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

10.931

 

8.762

 

5.234

 

3.496

 

3.013

 

2.459

 

 

 

Adjusted EBITDA

$      (1.757)

 

$      10.949

 

$        3.824

 

$      16.453

 

$    18.911

 

$         9.952

 

 

 

Hanover Direct, Inc.

Historical Financial Statements

As Of December 31, 2001 - 2005 And September 30, 2006

(figures in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BALANCE SHEET

2001

 

2002

 

2003

 

2004

 

2005

 

30-Sep-06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash, marketable securities, and equivalents

$        1.121

 

$        0.785

 

$          2.282

 

$        0.510

 

$      0.275

 

$      0.061

 

 

Accounts receivable, net

19.456

 

16.945

 

14.335

 

17.819

 

16.518

 

13.085

 

 

Inventory

59.223

 

53.131

 

42.806

 

53.147

 

51.356

 

58.558

 

 

Other current assets

20.920

 

17.426

 

16.724

 

20.126

 

20.311

 

22.647

 

 

 

Total current assets

100.720

 

88.287

 

76.147

 

91.602

 

88.460

 

94.351

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

 

 

 

 

 

 

 

Property, plant, and equipment, net

34.232

 

29.233

 

27.778

 

24.624

 

20.189

 

21.362

 

 

Goodwill

9.278

 

9.278

 

9.278

 

9.278

 

8.649

 

8.649

 

 

Intangible assets, net

-

 

-

 

-

 

-

 

-

 

-

 

 

Other long-term assets

13.431

 

13.302

 

3.344

 

4.995

 

4.879

 

3.496

 

 

 

Total non-current assets

56.941

 

51.813

 

40.400

 

38.897

 

33.717

 

33.507

 

 

 

 

Total assets

$    157.661

 

$    140.100

 

$       116.547

 

$    130.499

 

$  122.177

 

$  127.858

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND OWNERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Accounts payable

$      46.348

 

$      42.873

 

$        42.742

 

$      29.544

 

$    27.043

 

$    20.593

 

 

Accrued expenses

25.132

 

26.351

 

17.088

 

20.535

 

12.341

 

14.029

 

 

Current portion of long-term debt

16.685

 

12.621

 

13.468

 

16.690

 

10.105

 

32.095

 

 

Current portion of capital leases

-

 

-

 

-

 

-

 

-

 

-

 

 

Revolving debt, line of credit, etc.

-

 

-

 

-

 

-

 

-

 

-

 

 

Other current liabilities

5.143

 

5.822

 

13.248

 

14.211

 

12.964

 

17.462

 

 

 

Total current liabilities

93.308

 

87.667

 

86.546

 

80.980

 

62.453

 

84.179

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-term debt

13.025

 

12.508

 

9.042

 

11.196

 

12.543

 

0.259

 

 

Capital leases

-

 

-

 

-

 

-

 

-

 

-

 

 

Other long-term liabilities

10.233

 

6.387

 

4.609

 

3.286

 

0.040

 

0.080

 

 

Preferred stock

76.823

 

92.379

 

72.689

 

72.689

 

72.689

 

72.689

 

 

 

Total long-term liabilities

100.081

 

111.274

 

86.340

 

87.171

 

85.272

 

73.028

 

 

 

 

Total liabilities

193.389

 

198.941

 

172.886

 

168.151

 

147.725

 

157.207

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Owners’ equity

 

 

 

 

 

 

 

 

 

 

 

 

 

Paid-in capital

93.558

 

93.625

 

0.222

 

0.225

 

0.225

 

0.225

 

 

Capital in excess of par value

351.558

 

337.507

 

450.407

 

460.744

 

460.891

 

460.952

 

 

Retained earnings

(477.497)

 

(486.627)

 

(503.622)

 

(498.621)

 

(486.664)

 

(490.526)

 

 

Less: treasury stock/notes receivable

(3.347)

 

(3.346)

 

(3.346)

 

-

 

-

 

-

 

 

 

 

Total owner’s equity

(35.728)

 

(58.841)

 

(56.339)

 

(37.652)

 

(25.548)

 

(29.349)

 

 

 

 

Total liabilities and owners’ equity

$    157.661

 

$    140.100

 

$       116.547

 

$    130.499

 

$  122.177

 

$  127.858

 

 

 

APPENDIX B

Hanover Direct, Inc.

Discounted Cash Flow Analysis - Projected Income Statement and Margin Analysis

(dollars in millions)

 

 

 

 

 

 

 

 

Historical

Income Statement

 

2001

 

2002

 

2003

 

2004

 

2005

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$532.165

 

$456.990

 

$370.096

 

$360.526

 

$407.442

 

% growth

 

-11.7%

 

-14.1%

 

-19.0%

 

-2.6%

 

13.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

339.556

 

290.383

 

233.552

 

216.940

 

252.991

 

 

Gross profit

 

192.609

 

166.607

 

136.544

 

143.586

 

154.451

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

216.574

 

168.818

 

136.687

 

136.273

 

137.315

 

 

Reported EBIT

 

(23.965)

 

(2.211)

 

(0.143)

 

7.313

 

17.136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

9.271

 

6.982

 

5.234

 

3.496

 

3.013

 

 

Reported EBITDA

 

(14.694)

 

4.771

 

5.091

 

10.809

 

20.149

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

Operating expense

 

11.277

 

4.398

 

3.506

 

5.840

 

(1.238)

 

 

Adjusted EBIT

 

(12.688)

 

2.187

 

3.363

 

13.153

 

15.898

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow

 

-

 

-

 

-

 

-

 

-

 

 

Adjusted EBITDA

 

(3.417)

 

9.169

 

8.597

 

16.649

 

18.911

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision @ 40%

 

(5.075)

 

0.875

 

1.345

 

5.261

 

6.359

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOPAT

 

$(7.613)

 

$ 1.312

 

$ 2.018

 

$ 7.892

 

$ 9.539

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flow Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sources of cash

 

 

 

 

 

 

 

 

 

 

 

NOPAT

 

$(7.613)

 

$ 1.312

 

$ 2.018

 

$ 7.892

 

$ 9.539

 

Depreciation and amortization

 

9.271

 

6.982

 

5.234

 

3.496

 

3.013

 

 

Total sources of cash

 

1.658

 

8.294

 

7.252

 

11.388

 

12.552

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Uses of cash

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

1.627

 

0.639

 

1.895

 

0.840

 

1.664

 

Incremental working capital obligations

 

22.976

 

(10.520)

 

(11.669)

 

26.015

 

9.035

 

 

Total uses of cash

 

24.603

 

(9.881)

 

(9.774)

 

26.855

 

10.699

 

 

 

Free cash flow

 

$(22.945)

 

$ 18.175

 

$ 17.026

 

$(15.467)

 

$ 1.853

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margin Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

63.8%

 

63.5%

 

63.1%

 

60.2%

 

62.1%

 

 

Gross profit

 

36.2%

 

36.5%

 

36.9%

 

39.8%

 

37.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

40.7%

 

36.9%

 

36.9%

 

37.8%

 

33.7%

 

 

Reported EBIT

 

-4.5%

 

-0.5%

 

0.0%

 

2.0%

 

4.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

1.7%

 

1.5%

 

1.4%

 

1.0%

 

0.7%

 

 

Reported EBITDA

 

-2.8%

 

1.0%

 

1.4%

 

3.0%

 

4.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

Operating expense

 

2.1%

 

1.0%

 

0.9%

 

1.6%

 

-0.3%

 

 

Adjusted EBIT

 

-2.4%

 

0.5%

 

0.9%

 

3.6%

 

3.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow

 

0.0%

 

0.0%

 

0.0%

 

0.0%

 

0.0%

 

 

Adjusted EBITDA

 

-0.6%

 

2.0%

 

2.3%

 

4.6%

 

4.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision @ 40%

 

-1.0%

 

0.2%

 

0.4%

 

1.5%

 

1.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOPAT

 

-1.4%

 

0.3%

 

0.5%

 

2.2%

 

2.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanover Direct, Inc.

Discounted Cash Flow Analysis - Projected Income Statement and Margin Analysis

(dollars in millions

 

 

 

 

 

 

 

LTM

 

Projected

Income Statement

 

30-Sep-06

 

2006

 

2007

 

2008

 

2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenues

 

$423.449

 

$418.577

 

$418.753

 

$434.440

 

$459.458

 

% growth

 

3.9%

 

2.7%

 

0.0%

 

3.7%

 

5.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

267.592

 

260.452

 

253.009

 

255.817

 

268.360

 

 

Gross profit

 

155.857

 

158.126

 

165.744

 

178.624

 

191.098

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

149.889

 

154.538

 

164.902

 

173.824

 

185.336

 

 

Reported EBIT

 

5.968

 

3.587

 

0.842

 

4.800

 

5.762

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

2.459

 

2.441

 

2.536

 

3.314

 

3.227

 

 

Reported EBITDA

 

8.427

 

6.028

 

3.378

 

8.114

 

8.989

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

Operating expense

 

1.525

 

-

 

-

 

-

 

-

 

 

Adjusted EBIT

 

7.493

 

3.587

 

0.842

 

4.800

 

5.762

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow

 

-

 

1.994

 

3.948

 

1.804

 

0.739

 

 

Adjusted EBITDA

 

9.952

 

8.022

 

7.326

 

9.918

 

9.728

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision @ 40%

 

2.997

 

1.435

 

0.337

 

1.920

 

2.305

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOPAT

 

$ 4.496

 

$ 2.152

 

$ 0.505

 

$ 2.880

 

$ 3.457

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Flow Statement

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sources of cash

 

 

 

 

 

 

 

 

 

 

 

NOPAT

 

$ 4.496

 

$ 2.152

 

$ 0.505

 

$ 2.880

 

$ 3.457

 

Depreciation and amortization

 

2.459

 

2.441

 

2.536

 

3.314

 

3.227

 

 

Total sources of cash

 

6.955

 

4.593

 

3.041

 

6.194

 

6.684

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Uses of cash

 

 

 

 

 

 

 

 

 

 

 

Capital expenditures

 

2.735

 

2.600

 

7.400

 

3.000

 

1.700

 

Incremental working capital obligations

 

6.369

 

(1.175)

 

(6.353)

 

0.369

 

2.062

 

 

Total uses of cash

 

9.104

 

1.425

 

1.047

 

3.369

 

3.762

 

 

 

Free cash flow

 

$(2.149)

 

$ 3.168

 

$ 1.994

 

$ 2.825

 

$ 2.922

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Margin Analysis

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of goods sold

 

63.2%

 

62.2%

 

60.4%

 

58.9%

 

58.4%

 

 

Gross profit

 

36.8%

 

37.8%

 

39.6%

 

41.1%

 

41.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

35.4%

 

36.9%

 

39.4%

 

40.0%

 

40.3%

 

 

Reported EBIT

 

1.4%

 

0.9%

 

0.2%

 

1.1%

 

1.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

0.6%

 

0.6%

 

0.6%

 

0.8%

 

0.7%

 

 

Reported EBITDA

 

2.0%

 

1.4%

 

0.8%

 

1.9%

 

2.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjustments

 

 

 

 

 

 

 

 

 

 

 

Operating expense

 

0.4%

 

0.0%

 

0.0%

 

0.0%

 

0.0%

 

 

Adjusted EBIT

 

1.8%

 

0.9%

 

0.2%

 

1.1%

 

1.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow

 

0.0%

 

0.5%

 

0.9%

 

0.4%

 

0.2%

 

 

Adjusted EBITDA

 

2.4%

 

1.9%

 

1.7%

 

2.3%

 

2.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax provision @ 40%

 

0.7%

 

0.3%

 

0.1%

 

0.4%

 

0.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

NOPAT

 

1.1%

 

0.5%

 

0.1%

 

0.7%

 

0.8%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanover Direct, Inc.

Discounted Cash Flow Method - Present Value Calculations and Summary of Results

(figures in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average cost of capital

 

21.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projections

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2006

2007

2008

2009

CAGR

 

 

 

Revenues

 

$ 418.577

$ 418.753

$  434.440

$ 459.458

3.0%

 

 

 

Adjusted EBIT

 

3.587

0.842

4.800

5.762

-22.4%

 

 

 

Adjusted EBITDA

 

8.022

7.326

9.918

9.728

-15.3%

 

 

 

NOPAT

 

 

2.152

0.505

2.880

3.457

-22.4%

 

 

 

Free cash flow

 

3.168

1.994

2.825

2.922

12.1%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DCF free cash flow

 

$     0.528

$     1.994

$     2.825

$     2.922

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Present Value Calculations

 

 

Weighted average cost of capital

 

 

 

 

 

 

 

20.4%

20.9%

21.4%

21.9%

22.4%

 

Average

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Present value of 2006 - 2009 available cash flow

$ 6.138

$ 6.099

$ 6.060

$ 6.022

$ 5.985

 

$ 6.061

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus:

 

 

 

 

 

 

 

 

 

 

 

Present value of terminal year

 

 

 

 

 

 

 

 

 

 

EBITDA multiple

 

6.5

$ 32.470

$ 32.046

$ 31.630

$ 31.221

$ 30.819

 

$ 31.637

 

 

 

 

 

 

7.0

34.967

34.511

34.063

33.623

33.190

 

34.071

 

 

 

 

 

 

7.5

37.465

36.976

36.496

36.024

35.560

 

36.504

 

 

 

 

 

 

8.0

39.963

39.442

38.929

38.426

37.931

 

38.938

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equals:

 

 

 

 

 

 

 

 

 

 

Enterprise value

 

 

 

 

 

 

 

 

 

 

EBITDA multiple

 

6.5

$ 38.607

$ 38.145

$ 37.690

$ 37.243

$ 36.804

 

$ 37.698

 

 

 

 

 

 

7.0

41.105

40.610

40.124

39.645

39.174

 

40.132

 

 

 

 

 

 

7.5

43.603

43.075

42.557

42.047

41.545

 

42.565

 

 

 

 

 

 

8.0

46.100

45.540

44.990

44.448

43.916

 

44.999

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) See "Calculations and Factors" on following page.

 

 

 

 

 

 

 

 

Hanover Direct, Inc.

Discounted Cash Flow Analysis

Calculations and Factors

(figures in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Terminal

Cash Flow Valuation

 

 

2006

2007

2008

2009

Year

 

 

 

 

 

 

 

 

 

 

 

 

Number of years to cash flows

 

 

0.08

0.67

1.67

2.67

3.17

 

 

 

 

 

 

 

 

 

 

 

 

Discount factor

 

20.4%

1.0156

1.1317

1.3624

1.6401

1.7995

 

 

 

 

 

 

20.9%

1.0159

1.1348

1.3718

1.6583

1.8233

 

 

 

 

 

 

21.4%

1.0163

1.1379

1.3813

1.6767

1.8473

 

 

 

 

 

 

21.9%

1.0166

1.1411

1.3908

1.6952

1.8715

 

 

 

 

 

 

22.4%

1.0170

1.1442

1.4003

1.7138

1.8959

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

Present value of cash flows

 

20.4%

$      0.520

$       1.762

$       2.073

$      1.782

$       6.138

 

 

 

 

 

 

20.9%

0.520

1.758

2.059

1.762

6.099

 

 

 

 

 

 

21.4%

0.520

1.753

2.045

1.743

6.060

 

 

 

 

 

 

21.9%

0.519

1.748

2.031

1.724

6.022

 

 

 

 

 

 

22.4%

0.519

1.743

2.017

1.705

5.985

 

 

 

 

 

 

 

 

 

 

 

 

Terminal Year Valuations

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EBITDA multiple

 

 

6.5

7.0

7.5

8.0

 

 

 

 

 

 

 

 

 

 

 

 

 

Value in terminal year

 

 

$    58.430

$     62.925

$    67.419

$    71.914

 

 

 

 

 

 

 

 

58.430

62.925

67.419

71.914

 

 

 

 

 

 

 

 

58.430

62.925

67.419

71.914

 

 

 

 

 

 

 

 

58.430

62.925

67.419

71.914

 

 

 

 

 

 

 

 

58.430

62.925

67.419

71.914

 

 

 

 

 

 

 

 

 

 

 

 

 

Present value

 

20.4%

$    32.470

$     34.967

$    37.465

$    39.963

 

 

 

 

 

 

 

20.9%

32.046

34.511

36.976

39.442

 

 

 

 

 

 

 

21.4%

31.630

34.063

36.496

38.929

 

 

 

 

 

 

 

21.9%

31.221

33.623

36.024

38.426

 

 

 

 

 

 

 

22.4%

30.819

33.190

35.560

37.931

 

 

 

Hanover Direct, Inc.

Discounted Cash Flow Analysis – Cost of Capital

October 30, 2006

(in millions, except per share data)

 

 

 

 

 

Blair

Corp.

 

Sharper

Image Inc.

 

Blyth

Inc.

 

Bed Bath &

Beyond Inc.

 

Cabela's

Inc.

 

Charming

Shoppes Inc.

 

Yankee Candle

Company Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Levered (observed) beta

 

0.35

 

1.05

 

0.52

 

0.69

 

1.52

 

0.90

 

1.13

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Market value of debt, net

 

($27.1)

 

($34.3)

 

$109.9

 

($817.2)

 

$217.3

 

($79.4)

 

$231.4

Market value of preferred

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

Market value of minority

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

 

0.0

Total net debt

 

($27.1)

 

($34.3)

 

$109.9

 

($817.2)

 

$217.3

 

($79.4)

 

$231.4

Market value of equity

 

122.1

 

166.4

 

973.5

 

11,696.5

 

1,639.4

 

2,114.7

 

1,435.1

Total invested capital

 

$94.9

 

$132.0

 

$1,083.4

 

$10,879.3

 

$1,856.6

 

$2,035.3

 

$1,666.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt/equity ratio (D/E)

 

-22.24%

 

-20.62%

 

11.29%

 

-6.99%

 

13.25%

 

-3.76%

 

16.12%

Debt/capital ratio (D/C)

 

-28.60%

 

-25.98%

 

10.14%

 

-7.51%

 

11.70%

 

-3.90%

 

13.88%

Equity/capital ratio (E/C)

 

128.60%

 

125.98%

 

89.86%

 

107.51%

 

88.30%

 

103.90%

 

86.12%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Unlevered beta

 

 

0.40

 

1.20

 

0.49

 

0.72

 

1.41

 

0.92

 

1.03

Weighted by invested capital

 

0.00

 

0.01

 

0.03

 

0.44

 

0.15

 

0.11

 

0.10

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25th

 

 

 

75th

 

 

 

 

 

Percentile

 

Median

 

Percentile

 

 

 

 

 

 

 

 

 

 

 

Levered (observed) beta

 

0.61

 

0.90

 

1.09

 

 

 

 

 

 

 

 

 

 

 

Debt/equity ratio (D/E)

 

-13.81%

 

-3.76%

 

12.27%

 

Debt/capital ratio (D/C)

 

-16.75%

 

-3.90%

 

10.92%

 

Equity/capital ratio (E/C)

 

116.75%

 

103.90%

 

89.08%

 

 

 

 

 

 

 

 

 

 

 

Unlevered beta (a)

 

0.61

 

0.92

 

1.11

 

Weighted unlevered beta (b)

 

 

 

0.83

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of equity calculation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Risk-free rate of return

 

4.98%

 

(20-year constant maturity treasury bond rate as of 10/25/2006,

 

 

 

 

 

 

 

 

Federal Reserve Statistical Release)

 

 

 

 

 

 

Equity risk premium

 

7.20%

 

(Ibbotson Associates' "SBBI Valuation Edition 2005 Yearbook")

 

 

Small-stock premium

 

9.80%

 

(Ibbotson Associates' "SBBI Valuation Edition 2005 Yearbook")

 

 

Marginal tax rate

 

 

40.00%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital structure assumptions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Target D/E ratio

 

0.00%

 

(Based on the median D/E ratio of guideline companies)

 

 

 

 

 

Unlevered beta

 

0.917

 

(Median unlevered beta for peer group)

 

 

 

 

 

 

 

Levered beta

 

0.917

 

(Based on the median unlevered beta)

 

 

 

 

 

 

Estimated cost of equity

 

21.39%

 

(Capital Asset Pricing Model; the risk-free rate of return plus the

 

 

 

 

 

 

 

 

equity risk premium multiplied by levered beta plus the small-stock premium)

Weighted average cost of capital calculation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cost of debt

 

 

6.43%

 

Moody's Baa

 

 

 

 

 

 

 

 

 

Target D/C ratio

 

 

0.00%

 

 

 

 

 

 

 

 

 

 

 

 

Target E/C ratio

 

 

100.00%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Estimated WACC

 

21.39%

 

(The cost of equity multiplied by the equity/capital ratio plus the cost

 

 

 

 

 

 

 

of debt multiplied by the debt/capital ratio multiplied by one minus the tax rate)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a)

 

The marginal tax rate is assumed to be 40.0%. Unlevered beta equals levered beta divided by the quantity one plus the debt/equity ratio multiplied by one minus the tax rate.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(b)

Unlevered beta weighted by the market value of invested capital of guideline companies.

 

 

 

 

 

 


APPENDIX C

Blair Corp.

AMEX: BL

(LINE GRAPH) 

Blair Corporation sells fashion apparel for men and women, as well as a range of home products in the United States. It offers womenswear, such as coordinates, dresses, tops, pants, skirts, lingerie, sportswear, suits, jackets, outerwear, and shoes; menswear, including suits, shirts, outerwear, active wear, slacks, shoes, and accessories; and home merchandise, such as bedspread ensembles, draperies, furniture covers, area rugs, bath accessories, kitchenware, gifts, collectibles, and personal care items. The company markets its products primarily by direct mail. It also offers its products through three retail stores, two in Pennsylvania and one in Delaware. Blair Corporation was founded by John L. Blair, Sr. in 1910. The company is headquartered in Warren, Pennsylvania.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL INCOME STATEMENT

 
   

 In Millions of U.S. Dollars
 (except per share items)

 

 

12 Months Ending

 

 

LTM
30-Jun-06

 

 

 

31-Dec-01

 

 

31-Dec-02

 

 

31-Dec-03

 

 

31-Dec-04

 

 

31-Dec-05

 

 

 

 

 

                                              

 Total revenue

 

 

$

628.5

 

 

$

606.8

 

 

$

623.5

 

 

$

540.8

 

 

$

492.7

 

 

$

463.6

 

 Cost of revenue

 

 

 

285.9

 

 

 

268.7

 

 

 

275.7

 

 

 

235.0

 

 

 

204.1

 

 

 

195.6

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Gross profit

 

 

 

342.5

 

 

 

338.0

 

 

 

347.8

 

 

 

305.9

 

 

 

288.6

 

 

 

268.0

 
                                                   

 Total operating expenses

 

 

 

327.7

 

 

 

306.8

 

 

 

324.5

 

 

 

282.4

 

 

 

266.6

 

 

 

263.6

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported operating income

 

 

 

14.8

 

 

 

31.3

 

 

 

23.3

 

 

 

23.5

 

 

 

22.0

 

 

 

4.4

 
                                                   

 Interest expense

 

 

 

2.1

 

 

 

0.1

 

 

 

(0.1

)

 

 

(0.1

)

 

 

0.6

 

 

 

0.4

 

 Other, net

 

 

 

0.0

 

 

 

0.0

 

 

 

0.3

 

 

 

0.2

 

 

 

(27.7

)

 

 

(27.3

)

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported income before tax

 

 

 

12.7

 

 

 

31.1

 

 

 

23.2

 

 

 

23.4

 

 

 

49.1

 

 

 

31.4

 
                                                   

 Income tax

 

 

 

3.4

 

 

 

12.0

 

 

 

8.6

 

 

 

8.5

 

 

 

17.6

 

 

 

11.1

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported net income

 

 

$

9.3

 

 

$

19.1

 

 

$

14.5

 

 

$

14.9

 

 

$

31.5

 

 

$

20.3

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Non-standard items (after tax)

 

 

 

1.5

 

 

 

0.0

 

 

 

0.2

 

 

 

1.6

 

 

 

(13.8

)

 

 

(27.7

)
                                                   

 Adjusted net income (pre FAS 123)

 

 

$

10.8

 

 

$

19.1

 

 

$

14.8

 

 

$

16.5

 

 

$

17.7

 

 

$

14.7

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Adjusted net income (post FAS 123)

 

 

$

10.7

 

 

$

18.8

 

 

$

14.0

 

 

$

15.8

 

 

$

17.3

 

 

$

3.2

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Diluted EPS (post FAS 123)

 

 

$

1.34

 

 

$

2.34

 

 

$

1.75

 

 

$

1.91

 

 

$

2.58

 

 

$

0.30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL BALANCE SHEET

 
   

 In Millions of U.S. Dollars
 (except per share items)

 

 

As of

 

 

      

 

 

31-Dec-01

 

 

31-Dec-02

 

 

31-Dec-03

 

 

31-Dec-04

 

 

31-Dec-05

 

 

30-Jun-06

 

 

 

                                    

 Cash and short term investments

 

 

$

5.7

 

 

$

50.0

 

 

$

36.4

 

 

$

50.6

 

 

$

53.1

 

 

$

27.2

 

 Total assets

 

 

$

324.1

 

 

$

344.1

 

 

$

346.0

 

 

$

351.2

 

 

$

193.1

 

 

$

162.4

 

 Total debt

 

 

$

16.2

 

 

$

15.8

 

 

$

15.5

 

 

$

15.1

 

 

$

0.0

 

 

$

0.0

 

 Minority interest

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 Total liabilities

 

 

$

82.3

 

 

$

86.8

 

 

$

77.2

 

 

$

68.7

 

 

$

66.7

 

 

$

43.9

 

 Total equity

 

 

$

241.8

 

 

$

257.3

 

 

$

268.8

 

 

$

282.6

 

 

$

126.4

 

 

$

118.4

 


Sharper Image

Nasdaq: SHRP

(LINE GRAPH) 

Sharper Image Corporation operates as a specialty retailer of electronics, recreation and fitness, personal care, house ware, travel, toy, gifts, and other categories of products. It has two store formats, The Sharper Image store and outlet stores. As of January 31, 2006, the company operated 186 The Sharper Image stores and 4 outlet stores in 37 states and the District of Columbia. Sharper Image markets and sells merchandise primarily through three sales channels: The Sharper Image stores; The Sharper Image catalog, which includes direct marketing activities and television infomercials; and the Internet. In addition, the company engages in wholesale operations. Sharper Image was founded in 1977 by Richard J. Thalheimer and is headquartered in San Francisco, California.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL INCOME STATEMENT

 
   

 In Millions of U.S. Dollars
 (except per share items)

 

 

12 Months Ending

 

 

LTM
30-Apr-06

 

 

 

31-Jan-02

 

 

31-Jan-03

 

 

31-Jan-04

 

 

31-Jan-05

 

 

31-Jan-06

 

 

 

 

 

                                              

 Total revenue

 

 

$

389.1

 

 

$

513.8

 

 

$

647.5

 

 

$

760.0

 

 

$

669.0

 

 

$

631.0

 

 Cost of revenue

 

 

 

222.3

 

 

 

269.9

 

 

 

338.4

 

 

 

412.6

 

 

 

421.9

 

 

 

411.4

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Gross profit

 

 

 

166.8

 

 

 

243.8

 

 

 

309.2

 

 

 

347.4

 

 

 

247.1

 

 

 

219.6

 
                                                   

 Total operating expenses

 

 

 

164.9

 

 

 

217.9

 

 

 

269.8

 

 

 

321.7

 

 

 

274.0

 

 

 

260.0

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported operating income

 

 

 

1.8

 

 

 

25.9

 

 

 

39.4

 

 

 

25.7

 

 

 

(26.9

)

 

 

(40.4

)

                                                   

 Interest expense

 

 

 

(0.4

)

 

 

0.1

 

 

 

(0.5

)

 

 

(0.6

)

 

 

(0.4

)

 

 

(0.3

)

 Other, net

 

 

 

0.4

 

 

 

0.1

 

 

 

0.4

 

 

 

1.5

 

 

 

0.9

 

 

 

0.7

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported income before tax

 

 

 

1.9

 

 

 

25.7

 

 

 

39.4

 

 

 

24.8

 

 

 

(27.4

)

 

 

(40.8

)

                                                   

 Income tax

 

 

 

0.8

 

 

 

10.6

 

 

 

16.3

 

 

 

10.2

 

 

 

(12.1

)

 

 

(17.5

)

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported net income

 

 

$

1.1

 

 

$

15.2

 

 

$

23.1

 

 

$

14.7

 

 

($

15.2

)

 

($

23.3

)

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Non-standard items (after tax)

 

 

 

0.4

 

 

 

0.1

 

 

 

0.4

 

 

 

2.4

 

 

 

1.1

 

 

 

0.0

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Adjusted net income (pre FAS 123)

 

 

$

1.5

 

 

$

15.2

 

 

$

23.6

 

 

$

17.0

 

 

($

14.1

)

 

($

22.1

)

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Adjusted net income (post FAS 123)

 

 

$

0.3

 

 

$

13.6

 

 

$

21.6

 

 

$

9.0

 

 

($

17.6

)

 

($

25.7

)

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Diluted EPS (post FAS 123)

 

 

$

0.03

 

 

$

1.03

 

 

$

1.41

 

 

$

0.55

 

 

($

1.17

)

 

($

1.73

)


 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL BALANCE SHEET

 
   

 In Millions of U.S. Dollars
 (except per share items)

 

 

As of

 

 

      

 

 

31-Jan-02

 

 

31-Jan-03

 

 

31-Jan-04

 

 

31-Jan-05

 

 

31-Jan-06

 

 

30-Apr-06

 

 

 

                                    

 Cash and short term investments

 

 

$

40.4

 

 

$

55.6

 

 

$

83.5

 

 

$

94.0

 

 

$

53.2

 

 

$

34.9

 

 Total assets

 

 

$

162.5

 

 

$

214.4

 

 

$

315.3

 

 

$

376.1

 

 

$

328.8

 

 

$

306.4

 

 Total debt

 

 

$

2.2

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.2

 

 

$

0.6

 

 Minority interest

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 Total liabilities

 

 

$

68.4

 

 

$

97.0

 

 

$

130.1

 

 

$

170.1

 

 

$

148.3

 

 

$

138.5

 

 Total equity

 

 

$

94.1

 

 

$

117.4

 

 

$

185.3

 

 

$

206.0

 

 

$

180.4

 

 

$

167.9

 


Blyth Inc.

NYSE: BTH

(LINE GRAPH) 

Blyth, Inc., together with its subsidiaries, operates as a home expressions company. The company operates in two segments, Direct Selling, and Catalog, Internet, and North American Wholesale Business. The Direct Selling segment offers scented candles, candle-related accessories, fragranced bath gels and body lotions, and other fragranced products under Purple Tree, Two Sisters Gourmet, and PartyLite brands in North America, Europe, and Australia. The Catalog, Internet, and North American Wholesale Business segment supplies household convenience items, photo albums, frames, holiday cards, personalized gifts, kitchen accessories, and gourmet coffee and tea under the Boca Java, Easy Comforts, Exposuresa, Home Marketplace, Miles Kimballa, and Walter Drakea brands. This segment also designs, manufactures, and distributes a range of home fragrance products; candle-related accessories; seasonal decorations, such as ornaments, artificial trees, and trim; and home decor products, such as picture frames, lamps, and textiles. The company sells these products to retailers, such as gift shops, specialty chains, department stores, food and drug outlets, mass retailers, and

North America under CBK, Carolina, Colonial, Colonial Candle of Cape Cod, Colonial at HOME, Edelman, Euro-Decor, Florasense, Gies, Liljeholmens, Seasons of Cannon Falls, and Triumph Tree brands. In addition, this segment offers chafing fuel, and tabletop lighting products and accessories for the away from home or foodservice trade under the Ambria, FilterMate, HandyFuel, and Sterno brands. Blyth, Inc. was founded in 1933 and is based in Greenwich, Connecticut.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL INCOME STATEMENT

 
   

 In Millions of U.S. Dollars
 (except per share items)

 

 

12 Months Ending

 

 

LTM
31-Jul-05

 

 

 

31-Jan-02

 

 

31-Jan-03

 

 

31-Jan-04

 

 

31-Jan-05

 

 

31-Jan-06

 

 

 

 

 

                                              

 Total revenue

 

 

$

1,178.8

 

 

$

1,288.6

 

 

$

1,505.6

 

 

$

1,586.3

 

 

$

1,573.1

 

 

$

1,570.8

 

 Cost of revenue

 

 

 

601.8

 

 

 

648.3

 

 

 

781.9

 

 

 

814.6

 

 

 

859.8

 

 

 

871.8

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Gross profit

 

 

 

577.0

 

 

 

640.3

 

 

 

723.7

 

 

 

771.7

 

 

 

713.3

 

 

 

699.0

 
                                                   

 Total operating expenses

 

 

 

456.5

 

 

 

484.8

 

 

 

570.6

 

 

 

602.4

 

 

 

657.1

 

 

 

658.3

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported operating income

 

 

 

120.5

 

 

 

155.5

 

 

 

153.1

 

 

 

169.3

 

 

 

56.2

 

 

 

40.8

 
                                                   

 Interest expense

 

 

 

17.2

 

 

 

14.7

 

 

 

17.4

 

 

 

22.1

 

 

 

23.7

 

 

 

21.6

 

 Other, net

 

 

 

(5.0

)

 

 

30.0

 

 

 

(1.3

)

 

 

(1.9

)

 

 

0.4

 

 

 

0.4

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported income before tax

 

 

 

108.3

 

 

 

110.8

 

 

 

136.9

 

 

 

149.1

 

 

 

32.0

 

 

 

18.7

 
                                                   

 Income tax

 

 

 

40.3

 

 

 

53.0

 

 

 

50.4

 

 

 

52.9

 

 

 

7.8

 

 

 

(7.6

)

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported net income

 

 

$

68.0

 

 

$

57.8

 

 

$

86.4

 

 

$

96.5

 

 

$

24.9

 

 

$

27.5

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Non-standard items (after tax)

 

 

 

(17.5

)

 

 

17.5

 

 

 

(14.3

)

 

 

0.0

 

 

 

35.0

 

 

 

0.0

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Adjusted net income (pre FAS 123)

 

 

$

50.5

 

 

$

75.3

 

 

$

72.1

 

 

$

96.5

 

 

$

59.8

 

 

$

62.5

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Adjusted net income (post FAS 123)

 

 

$

48.2

 

 

$

72.5

 

 

$

69.6

 

 

$

94.1

 

 

$

56.9

 

 

$

59.6

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Diluted EPS (post FAS 123)

 

 

$

1.02

 

 

$

1.56

 

 

$

1.51

 

 

$

2.16

 

 

$

1.38

 

 

$

1.46

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL BALANCE SHEET

 
   

 In Millions of U.S. Dollars
 (except per share items)

 

 

As of

 

 

      

 

 

31-Jan-02

 

 

31-Jan-03

 

 

31-Jan-04

 

 

31-Jan-05

 

 

31-Jan-06

 

 

31-Jul-05

 

 

 

                                    

 Cash and short term investments

 

 

$

135.4

 

 

$

168.6

 

 

$

229.7

 

 

$

91.7

 

 

$

242.1

 

 

$

156.7

 

 Total assets

 

 

$

804.8

 

 

$

860.1

 

 

$

1,128.0

 

 

$

1,075.8

 

 

$

1,116.5

 

 

$

832.6

 

 Total debt

 

 

$

191.7

 

 

$

176.5

 

 

$

293.9

 

 

$

287.9

 

 

$

371.7

 

 

$

266.6

 

 Minority interest

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 Total liabilities

 

 

$

336.7

 

 

$

352.2

 

 

$

539.0

 

 

$

554.5

 

 

$

622.7

 

 

$

488.4

 

 Total equity

 

 

$

468.1

 

 

$

507.9

 

 

$

589.0

 

 

$

521.3

 

 

$

493.8

 

 

$

344.2

 


Bed Bath & Beyond Inc.

Nasdaq: BBBY

(LINE GRAPH)

Bed Bath & Beyond, Inc. and its subsidiaries operate as a national chain of retail stores in the United States. It operates stores under the Bed Bath & Beyond (BBB), Christmas Tree Shops (CTS), and Harmon trade names. The company sells an assortment of merchandise, primarily including domestic merchandise, such as bed linens and related items, bath items, and kitchen textiles; and home furnishings, including kitchen and tabletop items, fine tabletop, basic housewares, and general home furnishings, as well as food, giftware, and health and beauty care items. As of May 27, 2006, it operated 751 BBB stores, 30 CTS stores, and 38 Harmon stores. In addition, the company maintains two e-service fulfillment centers. Bed Bath & Beyond was founded by Leonard Feinstein and Warren Eisenberg in 1971. The company is headquartered in Union, New Jersey.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL INCOME STATEMENT

 
   

 In Millions of U.S. Dollars
 (except per share items)

 

 

12 Months Ending

 

 

LTM
26-Aug-06

 

 

 

2-Mar-02

 

 

1-Mar-03

 

 

28-Feb-04

 

 

26-Feb-05

 

 

25-Feb-06

 

 

 

 

 

                                              

 Total revenue

 

 

$

2,928.0

 

 

$

3,665.2

 

 

$

4,478.0

 

 

$

5,147.7

 

 

$

5,809.6

 

 

$

6,137.2

 

 Cost of revenue

 

 

 

1,720.4

 

 

 

2,146.6

 

 

 

2,601.3

 

 

 

2,961.4

 

 

 

3,323.8

 

 

 

3,505.6

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Gross profit

 

 

 

1,207.6

 

 

 

1,518.5

 

 

 

1,876.7

 

 

 

2,186.3

 

 

 

2,485.7

 

 

 

2,631.5

 
                                                   

 Total operating expenses

 

 

 

861.5

 

 

 

1,038.5

 

 

 

1,237.3

 

 

 

1,393.9

 

 

 

1,606.6

 

 

 

1,752.7

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported operating income

 

 

 

346.1

 

 

 

480.1

 

 

 

639.3

 

 

 

792.4

 

 

 

879.2

 

 

 

878.8

 
                                                   

 Interest expense

 

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

 Other, net

 

 

 

(11.0

)

 

 

(11.3

)

 

 

(10.2

)

 

 

(18.8

)

 

 

(35.9

)

 

 

(40.4

)

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported income before tax

 

 

 

357.1

 

 

 

491.3

 

 

 

649.5

 

 

 

811.2

 

 

 

915.1

 

 

 

919.2

 
                                                   

 Income tax

 

 

 

137.5

 

 

 

189.2

 

 

 

250.1

 

 

 

306.2

 

 

 

342.2

 

 

 

340.7

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported net income

 

 

$

219.6

 

 

$

302.2

 

 

$

399.5

 

 

$

505.0

 

 

$

572.8

 

 

$

578.5

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Non-standard items (after tax)

 

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Adjusted net income (pre FAS 123)

 

 

$

219.6

 

 

$

302.2

 

 

$

399.5

 

 

$

505.0

 

 

$

572.8

 

 

$

578.5

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Adjusted net income (post FAS 123)

 

 

$

200.0

 

 

$

276.7

 

 

$

370.1

 

 

$

470.3

 

 

$

541.4

 

 

$

547.1

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 

 

                                    

 Diluted EPS (post FAS 123)

 

 

$

0.67

 

 

$

0.92

 

 

$

1.21

 

 

$

1.53

 

 

$

1.81

 

 

$

1.86

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL BALANCE SHEET

 
   

 In Millions of U.S. Dollars
 (except per share items)

 

 

 As of

 

 

      

 

 

2-Mar-02

 

 

1-Mar-03

 

 

28-Feb-04

 

 

26-Feb-05

 

 

25-Feb-06

 

 

26-Aug-06

 

 

 

                                    

 Cash and short term investments

 

 

$

429.5

 

 

$

616.6

 

 

$

866.6

 

 

$

851.4

 

 

$

651.8

 

 

$

817.2

 

 Total assets

 

 

$

1,647.5

 

 

$

2,188.8

 

 

$

2,865.0

 

 

$

3,200.0

 

 

$

3,382.1

 

 

$

3,710.8

 

 Total debt

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 Minority interest

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 Total liabilities

 

 

$

553.2

 

 

$

736.9

 

 

$

874.2

 

 

$

996.2

 

 

$

1,119.7

 

 

$

1,161.5

 

 Total equity

 

 

$

1,094.4

 

 

$

1,451.9

 

 

$

1,990.8

 

 

$

2,203.8

 

 

$

2,262.5

 

 

$

2,549.2

 


Cabela’s Inc.

NYSE: CAB

(LINE GRAPH)

Cabela’s Incorporated operates as a direct marketer and a retailer of hunting, fishing, camping, and related outdoor merchandise. Its products include hunting, fishing, marine, and camping merchandise; casual and outdoor apparel and footwear; optics; taxidermy products; vehicle accessories; and gifts and home furnishings. The company markets its products through catalog mailings, the Internet, and telephone. As of December 31, 2005, Cabela’s operated 14 destination retail stores located in Nebraska, Kansas, Minnesota, South Dakota, Michigan, Wisconsin, Pennsylvania, West Virginia, Texas, and Utah. It sells its products in the United States and internationally. The company was founded in 1961 and is headquartered in Sidney, Nebraska.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL INCOME STATEMENT

 
   

 In Millions of U.S. Dollars
 (except per share items)

 

 

12 Months Ending

 

 

LTM
1-Jul-06

 

 

 

29-Dec-01

 

 

28-Dec-02

 

 

31-Dec-03

 

 

31-Dec-04

 

 

31-Dec-05

 

 

 

 

 

                                              

 Total revenue

 

 

$

1,077.6

 

 

$

1,224.6

 

 

$

1,392.4

 

 

$

1,556.0

 

 

$

1,799.7

 

 

$

1,897.3

 

 Cost of revenue

 

 

 

662.2

 

 

 

735.4

 

 

 

827.5

 

 

 

925.7

 

 

 

1,064.3

 

 

 

1,114.1

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Gross profit

 

 

 

415.4

 

 

 

489.1

 

 

 

564.9

 

 

 

630.3

 

 

 

735.3

 

 

 

783.2

 
                                                   

 Total operating expenses

 

 

 

353.5

 

 

 

413.1

 

 

 

480.0

 

 

 

533.1

 

 

 

620.4

 

 

 

659.3

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported operating income

 

 

 

62.0

 

 

 

76.0

 

 

 

84.9

 

 

 

97.2

 

 

 

115.0

 

 

 

123.9

 
                                                   

 Interest expense

 

 

 

6.9

 

 

 

8.0

 

 

 

10.8

 

 

 

7.6

 

 

 

10.3

 

 

 

13.0

 

 Other, net

 

 

 

(4.4

)

 

 

(4.7

)

 

 

(5.6

)

 

 

(10.4

)

 

 

(10.7

)

 

 

(10.7

)

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported income before tax

 

 

 

59.4

 

 

 

72.7

 

 

 

79.8

 

 

 

100.1

 

 

 

115.4

 

 

 

121.5

 
                                                   

 Income tax

 

 

 

21.0

 

 

 

25.8

 

 

 

28.4

 

 

 

35.1

 

 

 

42.8

 

 

 

45.3

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported net income

 

 

$

38.4

 

 

$

46.9

 

 

$

51.4

 

 

$

65.0

 

 

$

72.6

 

 

$

76.2

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Non-standard items (after tax)

 

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

 

 

(2.5

)

 

 

0.0

 

 

 

0.0

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Adjusted net income (pre FAS 123)

 

 

$

38.4

 

 

$

46.9

 

 

$

51.4

 

 

$

62.5

 

 

$

72.6

 

 

$

76.2

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Adjusted net income (post FAS 123)

 

 

$

38.4

 

 

$

45.9

 

 

$

50.4

 

 

$

58.9

 

 

$

66.4

 

 

$

70.0

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 

 

                                    

 Diluted EPS (post FAS 123)

 

 

$

0.71

 

 

$

0.86

 

 

$

0.94

 

 

$

0.96

 

 

$

1.00

 

 

$

1.06

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL BALANCE SHEET

 
   

 In Millions of U.S. Dollars
 (except per share items)

 

 

As of

 

 

      

 

 

29-Dec-01

 

 

28-Dec-02

 

 

31-Dec-03

 

 

31-Dec-04

 

 

31-Dec-05

 

 

1-Jul-06

 

 

 

                                    

 Cash and short term investments

 

 

$

0.0

 

 

$

178.6

 

 

$

192.6

 

 

$

248.2

 

 

$

86.9

 

 

$

120.7

 

 Total assets

 

 

$

0.0

 

 

$

835.0

 

 

$

963.6

 

 

$

1,228.2

 

 

$

1,366.3

 

 

$

1,527.9

 

 Total debt

 

 

$

0.0

 

 

$

200.1

 

 

$

142.7

 

 

$

148.2

 

 

$

119.8

 

 

$

337.9

 

 Minority interest

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 Total liabilities

 

 

$

0.0

 

 

$

575.4

 

 

$

591.0

 

 

$

661.9

 

 

$

726.4

 

 

$

867.1

 

 Total equity

 

 

$

0.0

 

 

$

259.5

 

 

$

372.5

 

 

$

566.4

 

 

$

639.9

 

 

$

660.8

 


Charming Shoppes Inc.

Nasdaq: CHRS

(LINE GRAPH)

Charming Shoppes, Inc. operates as a multichannel, multibrand specialty apparel retailer specializing in plus-size women’s apparel in the United States. The company offers plus-size, misses, and junior sportswear; wear-to-work; dresses; coats; intimate apparel; and casual sportswear, as well as accessories and casual footwear. In addition, the company, through its subsidiary, Crosstown Traders, Inc., operates as a direct marketer of women’s apparel, footwear, accessories, and specialty gifts throughout the continental United States through multiple catalogs and related Web sites. As of March 20, 2006, the company operated 2,236 retail stores in 48 states under the names LANE BRYANT, FASHION BUG, FASHION BUG PLUS, and CATHERINES PLUS SIZES. Charming Shoppes was founded by Morris and Arthur Sidewater in 1940 and is headquartered in Bensalem, Pennsylvania.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL INCOME STATEMENT

 
   

 In Millions of U.S. Dollars
 (except per share items)

 

 

12 Months Ending

 

 

LTM
29-Jul-06

 

 

 

2-Feb-02

 

 

1-Feb-03

 

 

31-Jan-04

 

 

29-Jan-05

 

 

28-Jan-06

 

 

 

 

 

                                              

 Total revenue

 

 

 $

1,995.8

 

 

 $

2,412.4

 

 

$

2,288.4

 

 

$

2,334.7

 

 

$

2,755.7

 

 

$

2,961.6

 

 Cost of revenue

 

 

 

1,462.2

 

 

 

1,726.3

 

 

 

1,645.5

 

 

 

1,642.7

 

 

 

1,911.3

 

 

 

2,071.9

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Gross profit

 

 

 

533.6

 

 

 

686.1

 

 

 

642.9

 

 

 

692.1

 

 

 

844.5

 

 

 

889.7

 
                                                   

 Total operating expenses

 

 

 

528.8

 

 

 

598.7

 

 

 

569.8

 

 

 

577.9

 

 

 

683.2

 

 

 

737.4

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported operating income

 

 

 

4.8

 

 

 

87.4

 

 

 

73.1

 

 

 

114.2

 

 

 

161.2

 

 

 

152.3

 
                                                   

 Interest expense

 

 

 

18.7

 

 

 

20.3

 

 

 

15.6

 

 

 

15.6

 

 

 

17.9

 

 

 

17.2

 

 Other, net

 

 

 

(4.7

)

 

 

46.8

 

 

 

(2.1

)

 

 

(3.1

)

 

 

(9.1

)

 

 

(8.7

)

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported income before tax

 

 

 

(9.2

)

 

 

20.4

 

 

 

59.5

 

 

 

101.7

 

 

 

152.4

 

 

 

143.8

 
                                                   

 Income tax

 

 

 

(1.8

)

 

 

27.1

 

 

 

21.6

 

 

 

37.1

 

 

 

53.0

 

 

 

49.2

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported net income

 

 

($

7.3

)

 

($

6.1

)

 

$

38.0

 

 

$

64.5

 

 

$

99.4

 

 

$

94.6

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Non-standard items (after tax)

 

 

 

22.6

 

 

 

1.8

 

 

 

13.0

 

 

 

6.1

 

 

 

5.9

 

 

 

0.0

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Adjusted net income (pre FAS 123)

 

 

 $

15.3

 

 

($

4.3

)

 

$

51.0

 

 

$

70.6

 

 

$

105.3

 

 

$

100.5

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Adjusted net income (post FAS 123)

 

 

 $

15.3

 

 

($

4.3

)

 

$

51.0

 

 

$

70.6

 

 

$

105.3

 

 

$

100.5

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Diluted EPS (post FAS 123)

 

 

 $

0.14

 

 

($

0.03

)

 

$

0.40

 

 

$

0.53

 

 

$

0.77

 

 

$

0.72

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL BALANCE SHEET

 
   

 In Millions of U.S. Dollars
 (except per share items)

 

 

As of

 

 

      

 

 

2-Feb-02

 

 

1-Feb-03

 

 

31-Jan-04

 

 

29-Jan-05

 

 

28-Jan-06

 

 

29-Jul-06

 

 

 

                                    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 Cash and short term investments

 

 

$

65.2

 

 

$

152.3

 

 

$

179.5

 

 

$

325.9

 

 

$

217.1

 

 

$

298.6

 

 Total assets

 

 

$

1,124.2

 

 

$

1,131.9

 

 

$

1,173.1

 

 

$

1,303.8

 

 

$

1,567.0

 

 

$

1,646.1

 

 Total debt

 

 

$

272.2

 

 

$

215.6

 

 

$

220.1

 

 

$

225.1

 

 

$

256.7

 

 

$

219.1

 

 Minority interest

 

 

$

1.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 Total liabilities

 

 

$

573.4

 

 

$

570.3

 

 

$

585.7

 

 

$

609.3

 

 

$

752.6

 

 

$

756.4

 

 Total equity

 

 

$

550.8

 

 

$

561.6

 

 

$

587.4

 

 

$

694.5

 

 

$

814.3

 

 

$

889.6

 


Yankee Candle Company Inc.

NYSE: YCC

(LINE GRAPH)

The Yankee Candle Company, Inc. engages in the design, manufacture, and marketing of scented candles in the giftware industry. Its products include jar candles, votive candles, wax potpourri, pillars, and other candle products. The company also offers home décor accessories, such as electric home fragrancers, branded potpourri, sachets, room sprays, and linen sprays and air fresheners. Through its Web site, The Yankee Candle Company offers personalized guest registration, gift cards and other gift giving programs, a store locator, decorating ideas, sites dedicated to corporate gifts, weddings and other customized purchases, and personalized candle configuring capability. The company sells its products through wholesale customer and retail stores, direct mail catalogs, Web site, and international distributors in the United States, Europe, and the Middle East. As of December 31, 2005, the company owned and operated 390 stores. The Yankee Candle Company was founded in 1976 and is headquartered in South Deerfield, Massachusetts.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL INCOME STATEMENT

 
   

 In Millions of U.S. Dollars
 (except per share items)

 

 

12 Months Ending

 

 

LTM
1-Jul-06

 

 

 

29-Dec-01

 

 

28-Dec-02

 

 

3-Jan-04

 

 

1-Jan-05

 

 

31-Dec-05

 

 

 

 

 

                                              

 Total revenue

 

 

$

379.8

 

 

$

444.8

 

 

$

508.6

 

 

$

554.2

 

 

$

601.2

 

 

$

623.5

 

 Cost of revenue

 

 

 

174.1

 

 

 

194.7

 

 

 

215.3

 

 

 

230.5

 

 

 

257.5

 

 

 

271.4

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Gross profit

 

 

 

205.7

 

 

 

250.1

 

 

 

293.3

 

 

 

323.7

 

 

 

343.7

 

 

 

352.2

 
                                                   

 Total operating expenses

 

 

 

123.9

 

 

 

140.3

 

 

 

166.3

 

 

 

184.4

 

 

 

209.0

 

 

 

221.4

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported operating income

 

 

 

81.9

 

 

 

109.8

 

 

 

127.0

 

 

 

139.3

 

 

 

134.8

 

 

 

130.7

 
                                                   

 Interest expense

 

 

 

10.5

 

 

 

4.8

 

 

 

3.8

 

 

 

4.1

 

 

 

7.2

 

 

 

11.3

 

 Other, net

 

 

 

0.4

 

 

 

(0.4

)

 

 

(0.4

)

 

 

(1.5

)

 

 

(0.5

)

 

 

(1.5

)

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported income before tax

 

 

 

71.0

 

 

 

105.4

 

 

 

123.6

 

 

 

136.7

 

 

 

128.0

 

 

 

120.9

 
                                                   

 Income tax

 

 

 

27.7

 

 

 

41.4

 

 

 

48.8

 

 

 

54.0

 

 

 

49.9

 

 

 

44.8

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 Reported net income

 

 

$

43.3

 

 

$

64.0

 

 

$

74.8

 

 

$

82.7

 

 

$

78.1

 

 

$

76.1

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Non-standard items (after tax)

 

 

 

4.8

 

 

 

0.0

 

 

 

0.0

 

 

 

0.0

 

 

 

3.3

 

 

 

0.0

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Adjusted net income (pre FAS 123)

 

 

$

48.1

 

 

$

64.0

 

 

$

74.8

 

 

$

82.7

 

 

$

81.4

 

 

$

79.4

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 
                                                   

 Adjusted net income (post FAS 123)

 

 

$

46.7

 

 

$

62.5

 

 

$

73.4

 

 

$

81.6

 

 

$

80.9

 

 

$

78.9

 

 

 

 

    

 

 

      

 

    

 

 

    

 

 

    

 

 

    

 

 

 Diluted EPS (post FAS 123)

 

 

$

0.85

 

 

$

1.14

 

 

$

1.37

 

 

$

1.66

 

 

$

1.80

 

 

$

1.80

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ANNUAL BALANCE SHEET

 
   

 In Millions of U.S. Dollars
 (except per share items)

 

 

As of

 

 

 

29-Dec-01

 

 

28-Dec-02

 

 

3-Jan-04

 

 

1-Jan-05

 

 

31-Dec-05

 

 

1-Jul-06

 

 

 

                                    

 

 Cash and short term investments

 

 

$

30.5

 

 

$

43.7

 

 

$

40.7

 

 

$

36.4

 

 

$

12.7

 

 

$

9.6

 

 Total assets

 

 

$

321.3

 

 

$

340.6

 

 

$

334.7

 

 

$

346.4

 

 

$

355.1

 

 

$

353.1

 

 Total debt

 

 

$

115.0

 

 

$

60.6

 

 

$

65.0

 

 

$

75.0

 

 

$

178.0

 

 

$

241.0

 

 Minority interest

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 

$

0.0

 

 Total liabilities

 

 

$

173.2

 

 

$

127.7

 

 

$

144.4

 

 

$

166.7

 

 

$

287.0

 

 

$

306.1

 

 Total equity

 

 

$

148.1

 

 

$

212.9

 

 

$

190.3

 

 

$

179.7

 

 

$

68.1

 

 

$

47.0

 


 

Hanover Direct, Inc.
 

Comparison of Hanover Direct, Inc. Latest Twelve Months (Ended September 30, 2006) Financial Results to Comparable Companies

October 30, 2006

(dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanover
Direct Inc.

 

Blair
Corp.

 

Sharper
Image Inc.

 

Blyth
Inc.

 

Bed Bath &
Beyond Inc.

 

Cabela’s
Inc.

 

 

 

 

 

 

 

 

 

 

    

 

  

 

  

 

  

 

  

 

Size

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 $

423.4

 

$

463.6

 

$

631.0

 

$

1,570.8

 

$

6,137.2

 

$

1,897.3

 

EBIT

 

 

7.5

 

 

4.4

 

 

(40.4

)

 

96.2

 

 

878.8

 

 

123.9

 

EBITDA

 

 

10.0

 

 

13.7

 

 

(12.6

)

 

130.5

 

 

1,005.2

 

 

165.2

 

Net income

 

 

(1.7

)

 

3.2

 

 

(25.7

)

 

59.6

 

 

547.1

 

 

70.0

 

Total assets

 

 

127.9

 

 

162.4

 

 

306.4

 

 

832.6

 

 

3,710.8

 

 

1,527.9

 

Owner’s equity

 

 

(29.3

)

 

118.4

 

 

167.9

 

 

344.2

 

 

2,549.2

 

 

660.8

 

Tangible net worth

 

 

(38.0

)

 

118.1

 

 

167.9

 

 

217.3

 

 

2,549.2

 

 

660.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Growth

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

5.3

%

 

-11.9

%

 

-23.3

%

 

0.3

%

 

11.3

%

 

10.9

%

EBIT

 

 

-70.7

%

 

-168.4

%

 

205.6

%

 

27.4

%

 

-0.1

%

 

15.5

%

EBITDA

 

 

-63.3

%

 

-126.7

%

 

-26946.9

%

 

22.9

%

 

3.0

%

 

20.5

%

Net income

 

 

-164.4

%

 

-164.5

%

 

187.1

%

 

-9.3

%

 

2.1

%

 

11.0

%

Earnings per share (post FAS 123)

 

 

-183.1

%

 

-178.6

%

 

195.2

%

 

-11.2

%

 

5.8

%

 

11.3

%

Total assets

 

 

6.2

%

 

-32.1

%

 

-28.0

%

 

50.4

%

 

19.5

%

 

23.7

%

Owner’s equity

 

 

-216.9

%

 

-12.7

%

 

-28.5

%

 

60.1

%

 

25.4

%

 

6.6

%

Tangible net worth

 

 

-265.7

%

 

-12.7

%

 

-28.5

%

 

39.6

%

 

25.4

%

 

7.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

36.8

%

 

57.8

%

 

34.8

%

 

44.5

%

 

42.9

%

 

41.3

%

EBIT margin

 

 

1.8

%

 

1.0

%

 

-6.4

%

 

6.1

%

 

14.3

%

 

6.5

%

EBITDA margin

 

 

2.4

%

 

3.0

%

 

-2.0

%

 

8.3

%

 

16.4

%

 

8.7

%

Pre-tax margin

 

 

-0.4

%

 

0.8

%

 

-6.2

%

 

5.0

%

 

15.0

%

 

6.4

%

Net margin

 

 

-0.4

%

 

0.7

%

 

-4.1

%

 

3.8

%

 

8.9

%

 

3.7

%

Return on owner’s equity

 

 

5.9

%

 

2.7

%

 

-15.3

%

 

17.3

%

 

21.5

%

 

10.6

%

Return on total invested capital

 

 

1.9

%

 

-1.6

%

 

-25.5

%

 

83.1

%

 

-166.3

%

 

12.9

%

Return on net invested capital

 

 

1.9

%

 

-1.4

%

 

-39.0

%

 

-91.5

%

 

-47.7

%

 

16.3

%

Return on average total assets

 

 

1.6

%

 

2.1

% 

 

-8.4

% 

 

8.2

% 

 

14.7

% 

 

4.9

%

Earnings per share (post FAS 123)

 

 $

(0.09

)

$

0.30

 

$

(1.73

)

$

1.46

 

$

1.86

 

$

1.06

 

Dividend payout

 

 

16.4

%

 

127.5

%

 

0.0

%

 

0.0

%

 

0.0

%

 

0.0

%

FCF/Owner’s equity

 

 

-1.6

%

 

100.6

%

 

-12.6

%

 

77.0

%

 

10.1

%

 

-7.5

%

FCF/Total invested capital

 

 

0.4

%

 

-57.1

%

 

-20.9

%

 

322.6

%

 

-77.9

%

 

-8.6

%

FCF/Net invested capital

 

 

0.4

%

 

-50.5

%

 

-31.9

%

 

-355.2

%

 

-22.4

%

 

-10.8

%

FCF/Total assets

 

 

0.4

%

 

73.4

%

 

-6.9

%

 

31.8

%

 

6.9

%

 

-3.3

%

EBIT/Total assets

 

 

5.9

%

 

2.7

%

 

-13.2

%

 

11.6

%

 

23.7

%

 

8.1

%

Depreciation/Sales

 

 

0.6

%

 

2.0

%

 

4.4

%

 

2.2

%

 

2.1

%

 

2.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanover
Direct Inc.
Rank

 

 

 

Charming
Shoppes Inc.

 

Yankee Candle
Company Inc.

 

Percentiles

 

 

 

 

 

25th

 

Median

 

75th

 

 

 

  

 

  

 

  

 

  

 

  

 

  

Size

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

$

2,961.6

 

$

623.5

 

$

865.9

 

$

1,734.1

 

$

2,695.5

 

 

8

 

EBIT

 

 

162.2

 

 

136.3

 

 

27.4

 

 

110.0

 

 

152.6

 

 

6

 

EBITDA

 

 

260.9

 

 

162.5

 

 

42.9

 

 

147.9

 

 

237.0

 

 

7

 

Net income

 

 

100.5

 

 

78.9

 

 

17.3

 

 

64.8

 

 

92.9

 

 

16

 

Total assets

 

 

1,646.1

 

 

353.1

 

 

437.9

 

 

1,180.3

 

 

1,616.5

 

 

8

 

Owner’s equity

 

 

889.6

 

 

47.0

 

 

212.0

 

 

502.5

 

 

832.4

 

 

8

 

Tangible net worth

 

 

486.0

 

 

33.4

 

 

180.2

 

 

351.7

 

 

617.1

 

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Growth

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

15.0

%

 

7.5

%

 

-8.9

%

 

5.6

%

 

11.2

%

 

5

 

EBIT

 

 

-10.5

%

 

-5.8

%

 

-7.9

%

 

7.7

%

 

24.4

%

 

7

 

EBITDA

 

 

-1.0

%

 

-3.1

%

 

-95.2

%

 

1.0

%

 

16.2

%

 

6

 

Net income

 

 

-9.2

%

 

-5.0

%

 

-9.3

%

 

-3.5

%

 

8.8

%

 

7

 

Earnings per share
(post FAS 123)

 

 

-12.2

%

 

0.0

%

 

-11.9

%

 

-2.7

%

 

9.9

%

 

8

 

Total assets

 

 

10.1

%

 

-1.1

%

 

-18.4

%

 

14.8

%

 

22.7

%

 

5

 

Owner’s equity

 

 

18.5

%

 

-62.1

%

 

-7.9

%

 

12.6

%

 

23.7

%

 

8

 

Tangible net worth

 

 

37.3

%

 

-79.4

%

 

-7.6

%

 

16.6

%

 

34.4

%

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Profitability

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross margin

 

 

30.0

%

 

56.5

%

 

36.4

%

 

42.1

%

 

44.1

%

 

6

 

EBIT margin

 

 

5.5

%

 

21.9

%

 

2.1

%

 

5.8

%

 

6.4

%

 

6

 

EBITDA margin

 

 

8.8

%

 

26.1

%

 

4.3

%

 

8.5

%

 

8.8

%

 

7

 

Pre-tax margin

 

 

5.2

%

 

20.3

%

 

1.8

%

 

5.1

%

 

6.1

%

 

7

 

Net margin

 

 

3.4

%

 

12.7

%

 

1.4

%

 

3.5

%

 

3.8

%

 

7

 

Return on owner’s equity

 

 

11.3

%

 

167.7

%

 

4.7

%

 

10.9

%

 

15.8

%

 

6

 

Return on total invested capital

 

 

25.6

%

 

29.0

%

 

-19.5

%

 

5.7

%

 

22.4

%

 

5

 

Return on net invested capital

 

 

88.3

%

 

30.0

%

 

-45.5

%

 

-20.2

%

 

11.9

%

 

4

 

Return on average total assets

 

 

6.5

% 

 

23.6

% 

 

2.8

% 

 

5.7

% 

 

7.8

% 

 

7

 

Earnings per share
(post FAS 123)

 

$

0.72

 

$

1.80

 

$

0.40

 

$

0.89

 

$

1.36

 

 

7

 

Dividend payout

 

 

0.0

%

 

0.0

%

 

0.0

%

 

0.0

%

 

0.0

%

 

7

 

FCF/Owner’s equity

 

 

7.9

%

 

143.5

%

 

-3.7

%

 

9.0

%

 

60.2

%

 

3

 

FCF/Total invested capital

 

 

16.8

%

 

23.4

%

 

-48.1

%

 

-14.7

%

 

10.5

%

 

4

 

FCF/Net invested capital

 

 

58.1

%

 

24.3

%

 

-45.9

%

 

-27.1

%

 

-13.7

%

 

3

 

FCF/Total assets

 

 

4.3

%

 

19.1

%

 

-1.4

%

 

5.6

%

 

25.6

%

 

3

 

EBIT/Total assets

 

 

9.9

%

 

38.6

%

 

4.1

%

 

9.0

%

 

11.1

%

 

3

 

Depreciation/Sales

 

 

3.3

%

 

4.2

%

 

2.1

%

 

2.2

%

 

3.8

%

 

8

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Hanover Direct, Inc.
 

Comparison of Hanover Direct, Inc. Latest Twelve Months (Ended September 30, 2006) Financial Results to Comparable Companies

October 30, 2006

(dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanover
Direct Inc.

 

Blair
Corp.

 

Sharper
Image Inc.

 

Blyth
Inc.

 

Bed Bath &
Beyond Inc.

 

Cabela’s
Inc.

 

 

 

 

 

 

 

 

 

 

    

 

  

 

  

 

  

 

  

 

Turnover

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventory

 

 

4.6

 

 

3.0

 

 

3.8

 

 

3.5

 

 

2.6

 

 

2.6

 

Days

 

 

79.0

 

 

119.9

 

 

95.2

 

 

103.6

 

 

138.5

 

 

143.0

 

% Sales

 

 

13.7

%

 

13.9

%

 

17.0

%

 

15.8

%

 

21.7

%

 

23.0

%

Accounts receivable

 

 

35.4

 

 

6.7

 

 

29.9

 

 

20.0

 

 

—

 

 

64.0

 

Days

 

 

10.3

 

 

54.6

 

 

12.2

 

 

18.3

 

 

—

 

 

5.7

 

% Inventory

 

 

22.6

%

 

6.2

%

 

19.0

%

 

24.0

%

 

0.0

%

 

6.9

%

Accounts payable

 

 

11.5

 

 

10.7

 

 

11.6

 

 

14.4

 

 

6.4

 

 

6.9

 

Days

 

 

31.8

 

 

34.2

 

 

31.3

 

 

25.4

 

 

57.0

 

 

53.2

 

% Sales

 

 

4.9

%

 

3.5

%

 

5.3

%

 

3.6

%

 

9.6

%

 

8.6

%

Operating cycle

 

 

89.3

 

 

174.5

 

 

107.4

 

 

121.9

 

 

138.5

 

 

148.7

 

Cash cycle

 

 

57.5

 

 

140.2

 

 

76.1

 

 

96.5

 

 

81.5

 

 

95.5

 

Fixed assets

 

 

20.2

 

 

9.5

 

 

6.1

 

 

7.8

 

 

8.5

 

 

3.9

 

Working capital

 

 

10.5

 

 

2.4

 

 

11.2

 

 

6.1

 

 

12.2

 

 

13.2

 

Total assets

 

 

3.34

 

 

1.8

 

 

1.9

 

 

1.7

 

 

1.7

 

 

1.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leverage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities/Owner’s equity

 

 

(5.36

)

 

0.37

 

 

0.82

 

 

1.42

 

 

0.46

 

 

1.31

 

Total liabilities/Total assets

 

 

1.23

 

 

0.27

 

 

0.45

 

 

0.59

 

 

0.31

 

 

0.57

 

Current liabilities/Owner’s equity

 

 

(2.87

)

 

0.35

 

 

0.61

 

 

0.52

 

 

0.40

 

 

0.69

 

Current liabilities/Inventory

 

 

1.44

 

 

0.62

 

 

1.12

 

 

0.89

 

 

0.71

 

 

0.99

 

Total debt/Owner’s equity

 

 

(3.58

)

 

0.00

 

 

0.00

 

 

0.77

 

 

—

 

 

0.51

 

Total debt/Total invested capital

 

 

1.00

 

 

(0.00

)

 

0.01

 

 

3.25

 

 

—

 

 

0.58

 

Total debt/Fixed assets

 

 

4.92

 

 

0.00

 

 

0.01

 

 

1.60

 

 

—

 

 

0.62

 

Total debt/Total assets

 

 

0.82

 

 

0.00

 

 

0.00

 

 

0.32

 

 

—

 

 

0.22

 

Financial leverage effect

 

 

(4.35

)

 

1.39

 

 

1.57

 

 

1.61

 

 

1.61

 

 

1.77

 

Times interest earned

 

 

0.80

 

 

11.52

 

 

119.19

 

 

4.45

 

 

NM

 

 

9.53

 

Times interest earned
(cash basis)

 

 

0.05

 

 

309.85

 

 

62.44

 

 

12.24

 

 

NM

 

 

(3.83

)

Capital expenditure ratio

 

 

3.64

 

 

1.53

 

 

(0.47

)

 

7.03

 

 

3.30

 

 

1.42

 

Gross cash flow to CMLT debt

 

 

0.02

 

 

NM

 

 

NM

 

 

109.17

 

 

NM

 

 

4.02

 

Free cash flow/Total debt

 

 

0.00

 

 

3,418.90

 

 

(35.69

)

 

0.99

 

 

NM

 

 

(0.15

)

EBITDA/Total debt

 

 

0.09

 

 

392.98

 

 

(21.17

)

 

0.49

 

 

NM

 

 

0.49

 

Fixed assets/Owner’s equity

 

 

(0.73

)

 

0.41

 

 

0.61

 

 

0.48

 

 

0.31

 

 

0.82

 

Total assets/Owner’s equity

 

 

(4.36

)

 

1.37

 

 

1.82

 

 

2.42

 

 

1.46

 

 

2.31

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanover
Direct Inc.
Rank

 

 

 

Charming
Shoppes Inc.

 

Yankee Candle
Company Inc.

 

Percentiles

 

 

 

 

 

25th

 

Median

 

75th

 

 

 

  

 

  

 

  

 

  

 

  

 

  

Turnover

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventory

 

 

5.3

 

 

4.2

 

 

2.7

 

 

3.3

 

 

3.8

 

 

2

 

Days

 

 

68.2

 

 

86.6

 

 

97.3

 

 

111.8

 

 

133.9

 

 

2

 

% Sales

 

 

13.1

%

 

10.3

%

 

14.3

%

 

16.4

%

 

20.5

%

 

3

 

Accounts receivable

 

 

1,883.4

 

 

19.2

 

 

10.0

 

 

24.9

 

 

55.5

 

 

3

 

Days

 

 

0.2

 

 

19.0

 

 

1.6

 

 

9.0

 

 

16.7

 

 

4

 

% Inventory

 

 

0.8

%

 

50.4

%

 

2.2

%

 

6.5

%

 

15.9

%

 

6

 

Accounts payable

 

 

11.9

 

 

17.7

 

 

7.8

 

 

11.2

 

 

11.8

 

 

5

 

Days

 

 

30.7

 

 

20.6

 

 

30.9

 

 

32.8

 

 

48.5

 

 

5

 

% Sales

 

 

5.9

%

 

1.8

%

 

4.0

%

 

5.6

%

 

7.9

%

 

4

 

Operating cycle

 

 

68.4

 

 

105.6

 

 

111.0

 

 

130.2

 

 

146.1

 

 

2

 

Cash cycle

 

 

37.7

 

 

85.0

 

 

77.4

 

 

88.5

 

 

96.2

 

 

2

 

Fixed assets

 

 

8.3

 

 

4.8

 

 

6.5

 

 

8.0

 

 

8.4

 

 

1

 

Working capital

 

 

20.7

 

 

8.9

 

 

7.4

 

 

11.7

 

 

13.0

 

 

5

 

Total assets

 

 

1.8

 

 

1.8

 

 

1.7

 

 

1.8

 

 

1.8

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Leverage

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total liabilities/Owner’s equity

 

 

0.85

 

 

6.51

 

 

0.55

 

 

0.84

 

 

1.20

 

 

1

 

Total liabilities/Total assets

 

 

0.46

 

 

0.87

 

 

0.35

 

 

0.46

 

 

0.54

 

 

8

 

Current liabilities/Owner’s equity

 

 

0.46

 

 

0.99

 

 

0.41

 

 

0.49

 

 

0.59

 

 

1

 

Current liabilities/Inventory

 

 

1.07

 

 

0.65

 

 

0.76

 

 

0.94

 

 

1.05

 

 

8

 

Total debt/Owner’s equity

 

 

0.25

 

 

5.12

 

 

0.00

 

 

0.12

 

 

0.45

 

 

1

 

Total debt/Total invested capital

 

 

0.52

 

 

0.84

 

 

0.00

 

 

0.26

 

 

0.57

 

 

7

 

Total debt/Fixed assets

 

 

0.59

 

 

1.80

 

 

0.00

 

 

0.30

 

 

0.61

 

 

8

 

Total debt/Total assets

 

 

0.13

 

 

0.68

 

 

0.00

 

 

0.07

 

 

0.20

 

 

8

 

Financial leverage effect

 

 

1.61

 

 

1.73

 

 

1.58

 

 

1.61

 

 

1.61

 

 

1

 

Times interest earned

 

 

9.43

 

 

12.07

 

 

9.43

 

 

9.53

 

 

11.52

 

 

7

 

Times interest earned (cash basis)

 

 

4.11

 

 

5.98

 

 

4.11

 

 

12.24

 

 

62.44

 

 

6

 

Capital expenditure ratio

 

 

2.05

 

 

4.15

 

 

1.44

 

 

1.79

 

 

2.99

 

 

3

 

Gross cash flow to CMLT debt

 

 

15.72

 

 

NM

 

 

9.87

 

 

15.72

 

 

62.44

 

 

4

 

Free cash flow/Total debt

 

 

0.32

 

 

0.28

 

 

(0.15

)

 

0.32

 

 

0.99

 

 

5

 

EBITDA/Total debt

 

 

1.19

 

 

0.67

 

 

0.49

 

 

0.49

 

 

1.19

 

 

6

 

Fixed assets/Owner’s equity

 

 

0.42

 

 

2.85

 

 

0.41

 

 

0.45

 

 

0.58

 

 

1

 

Total assets/Owner’s equity

 

 

1.85

 

 

7.51

 

 

1.55

 

 

1.84

 

 

2.20

 

 

1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Hanover Direct, Inc.
 

Comparison of Hanover Direct, Inc. Latest Twelve Months (Ended September 30, 2006) Financial Results to Comparable Companies

October 30, 2006

(dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanover
Direct Inc.

 

Blair
Corp.

 

Sharper
Image Inc.

 

Blyth
Inc.

 

Bed Bath &
Beyond Inc.

 

Cabela’s
Inc.

 

 

 

 

 

 

 

 

 

 

    

 

  

 

  

 

  

 

  

 

Liquidity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current ratio

 

 

1.12

 

 

2.69

 

 

1.87

 

 

2.92

 

 

2.35

 

 

1.57

 

Quick ratio

 

 

0.16

 

 

0.75

 

 

0.54

 

 

1.21

 

 

0.80

 

 

0.33

 

Cash ratio

 

 

0.00

 

 

0.65

 

 

0.34

 

 

0.88

 

 

0.80

 

 

0.26

 

Cash/Total assets

 

 

0.00

 

 

0.17

 

 

0.11

 

 

0.19

 

 

0.22

 

 

0.08

 

Cash/Revenues

 

 

0.00

 

 

0.06

 

 

0.06

 

 

0.10

 

 

0.13

 

 

0.06

 

Operating working capital/Revenues

 

 

0.10

 

 

0.49

 

 

0.09

 

 

0.12

 

 

0.09

 

 

0.09

 

Free cash flow/Current liabilities

 

 

0.01

 

 

2.86

 

 

(0.21

)

 

1.49

 

 

0.25

 

 

(0.11

)

Free cash flow/Total liabilities

 

 

0.00

 

 

2.71

 

 

(0.15

)

 

0.54

 

 

0.22

 

 

(0.06

)

Defensive interval (days)

 

 

1,754

 

 

1,273

 

 

752

 

 

4,248

 

 

981

 

 

471

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanover
Direct Inc.
Rank

 

 

 

Charming
Shoppes Inc.

 

Yankee Candle
Company Inc.

 

Percentiles

 

 

 

 

 

25th

 

Median

 

75th

 

 

 

  

 

  

 

  

 

  

 

  

 

  

Liquidity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current ratio

 

 

1.99

 

 

2.81

 

 

1.90

 

 

2.17

 

 

2.61

 

 

8

 

Quick ratio

 

 

0.74

 

 

0.90

 

 

0.59

 

 

0.74

 

 

0.79

 

 

8

 

Cash ratio

 

 

0.73

 

 

0.21

 

 

0.42

 

 

0.69

 

 

0.79

 

 

8

 

Cash/Total assets

 

 

0.18

 

 

0.03

 

 

0.13

 

 

0.17

 

 

0.19

 

 

8

 

Cash/Revenues

 

 

0.10

 

 

0.02

 

 

0.06

 

 

0.08

 

 

0.10

 

 

8

 

Operating working capital/Revenues

 

 

0.05

 

 

0.12

 

 

0.09

 

 

0.09

 

 

0.11

 

 

4

 

Free cash flow/Current liabilities

 

 

0.17

 

 

1.45

 

 

(0.04

)

 

0.21

 

 

1.18

 

 

6

 

Free cash flow/Total liabilities

 

 

0.09

 

 

0.22

 

 

(0.02

)

 

0.16

 

 

0.46

 

 

6

 

Defensive interval (days)

 

 

863

 

 

392

 

 

780

 

 

922

 

 

1,200

 

 

2

 


 

Hanover Direct, Inc.
 

Financial Summary

October 30, 2006

(dollars in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hanover
Direct Inc.

 

 

Blair
Corp.

 

Sharper
Image Inc.

 

Blyth
Inc.

 

Bed Bath &
Beyond Inc.

 

Cabela’s
Inc.

 

Charming
Shoppes Inc.

 

Yankee Candle
Company Inc.

 
 

 

    

 

                              

Current stock data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ticker symbol

 

 

 

 

 

 

 

BL

 

 

SHRP

 

 

BTH

 

 

BBBY

 

 

CAB

 

 

CHRS

 

 

YCC

 

Diluted shares outstanding

 

 

 

 

 

 

 

4.0

 

 

15.0

 

 

40.3

 

 

291.3

 

 

66.3

 

 

138.7

 

 

42.4

 

Closing common share price

 

 

 

 

 

 

$

30.50

 

$

11.11

 

$

24.15

 

$

40.15

 

$

24.72

 

$

15.25

 

$

33.88

 

Equity market capitalization

 

 

 

 

 

 

 

122.08

 

 

166.36

 

 

166.36

 

 

11,696.52

 

 

1,639.36

 

 

2,114.74

 

 

1,435.14

 

52-week high

 

 

 

 

 

 

 

46.44

 

 

16.21

 

 

26.25

 

 

44.10

 

 

26.00

 

 

15.35

 

 

33.88

 

52-week low

 

 

 

 

 

 

 

23.73

 

 

8.75

 

 

16.29

 

 

30.92

 

 

15.34

 

 

9.69

 

 

20.80

 

5-year monthly beta

 

 

 

 

 

 

 

0.49

 

 

1.14

 

 

0.51

 

 

0.89

 

 

1.70

 

 

0.84

 

$

1.12

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latest 12-months ended

 

 

 

September-06

 

 

 

June-06

 

 

April-06

 

 

July-05

 

 

August-06

 

 

July-06

 

 

July-06

 

 

July-06

 

Revenue

 

 

$

423.4

 

 

$

463.6

 

$

631.0

 

$

1,570.8

 

$

6,137.2

 

$

1,897.3

 

$

2,961.6

 

$

623.5

 

Gross profit

 

 

 

155.9

 

 

 

268.0

 

 

219.6

 

 

699.0

 

 

2,631.5

 

 

783.2

 

 

889.7

 

 

352.2

 

EBIT

 

 

 

7.5

 

 

 

4.4

 

 

(40.4

)

 

96.2

 

 

878.8

 

 

123.9

 

 

162.2

 

 

136.3

 

Depreciation and amortization

 

 

 

2.5

 

 

 

9.3

 

 

27.9

 

 

34.3

 

 

126.4

 

 

41.4

 

 

98.7

 

 

26.3

 

EBITDA

 

 

 

10.0

 

 

 

13.7

 

 

(12.6

)

 

130.5

 

 

1,005.2

 

 

165.2

 

 

260.9

 

 

162.5

 

Net income

 

 

 

(1.7

)

 

 

3.2

 

 

(25.7

)

 

59.6

 

 

547.1

 

 

70.0

 

 

100.5

 

 

78.9

 

Diluted earnings per share

 

 

 

(0.09

)

 

 

0.30

 

 

(1.73

)

 

1.46

 

 

1.86

 

 

1.06

 

 

0.72

 

 

1.80

 

Free cash flow

 

 

 

0.5

 

 

 

119.2

 

 

(21.2

)

 

264.9

 

 

256.3

 

 

(49.8

)

 

70.7

 

 

67.5

 

Total assets

 

 

 

127.9

 

 

 

162.4

 

 

306.4

 

 

832.6

 

 

3,710.8

 

 

1,527.9

 

 

1,646.1

 

 

353.1

 

Owners equity

 

 

 

(29.3

)

 

 

118.4

 

 

167.9

 

 

344.2

 

 

2,549.2

 

 

660.8

 

 

889.6

 

 

47.0

 

Tangible net worth

 

 

 

(38.0

)

 

 

118.1

 

 

167.9

 

 

217.3

 

 

2,549.2

 

 

660.8

 

 

486.0

 

 

33.4

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Current balance sheet data as of

 

 

 

September-06

 

 

 

June-06

 

 

April-06

 

 

July-05

 

 

August-06

 

 

July-06

 

 

July-06

 

 

July-06

 

Cash and equivalents

 

 

$

0.1

 

 

$

27.2

 

$

34.9

 

$

156.7

 

$

817.2

 

$

120.7

 

$

298.6

 

$

9.6

 

Working capital (b)

 

 

 

42.2

 

 

 

43.3

 

 

54.8

 

 

186.0

 

 

549.6

 

 

168.0

 

 

122.0

 

 

74.8

 

Total Debt

 

 

 

105.0

 

 

 

0.0

 

 

0.6

 

 

266.6

 

 

0.0

 

 

337.9

 

 

219.1

 

 

241.0

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average interest rate

 

 

 

32.2

%

 

 

7.6

%

 

-350.2

%

 

7.2

%

 

NM

 

 

7.7

%

 

7.4

%

 

5.7

%

Average tax rate

 

 

 

5.3

%

 

 

32.1

%

 

44.7

%

 

34.2

%

 

37.4

%

 

37.1

%

 

35.1

%

 

39.0

%

Estimated current fiscal EPS

 

 

 

0.00

 

 

 

0.00

 

 

0.00

 

 

0.00

 

 

0.00

 

 

0.00

 

 

0.00

 

 

0.00

 

Projected next fiscal EPS

 

 

 

0.00

 

 

 

0.00

 

 

0.00

 

 

0.00

 

 

0.00

 

 

0.00

 

 

0.00

 

 

0.00

 

Price as a % of 52-week high

 

 

 

NA

 

 

 

0.66

 

 

0.69

 

 

0.92

 

 

0.91

 

 

0.95

 

 

0.99

 

 

1.00

 


 

Hanover Direct, Inc.
 

Multiples Summary

October 30, 2006

(dollars in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Blair
Corp.

 

Sharper
Image Inc.

 

Blyth
Inc.

 

Bed Bath &
Beyond Inc.

 

Cabela’s
Inc.

 

Charming
Shoppes Inc.

 

Yankee Candle
Company Inc.

 
                                               

Valuation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Closing common share price

 

 

$

30.50

 

$

11.11

 

$

24.15

 

$

40.15

 

$

24.72

 

$

15.25

 

$

33.88

 

Diluted shares outstanding

 

 

 

4.0

 

 

15.0

 

 

40.3

 

 

291.3

 

 

66.3

 

 

138.7

 

 

42.4

 

 

 

 

    

 

    

 

    

 

    

 

    

 

    

 

    

 

Equity market capitalization

 

 

$

122.1

 

$

166.4

 

$

973.5

 

$

11,696.5

 

$

1,639.4

 

$

2,114.7

 

$

1,435.1

 

Plus: debt, preferred, min int.

 

 

 

0.0

 

 

0.6

 

 

266.6

 

 

0.0

 

 

337.9

 

 

219.1

 

 

241.0

 

Less: cash and equivalents

 

 

 

27.2

 

 

34.9

 

 

156.7

 

 

817.2

 

 

120.7

 

 

298.6

 

 

9.6

 

 

 

 

    

 

    

 

    

 

    

 

    

 

    

 

    

 

Enterprise value

 

 

$

94.9

 

$

132.0

 

$

1,083.4

 

$

10,879.3

 

$

1,856.6

 

$

2,035.3

 

$

1,666.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation multiples

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latest 12-months ended

 

 

 

June-06

 

 

April-06

 

 

July-05

 

 

August-06

 

 

July-06

 

 

July-06

 

 

July-06

 

Revenue

 

 

 

0.2

 

 

0.2

 

 

0.7

 

 

1.8

 

 

1.0

 

 

0.7

 

 

2.7

 

EBIT

 

 

 

21.4

 

 

NM

 

 

11.3

 

 

12.4

 

 

15.0

 

 

12.5

 

 

12.2

 

EBITDA

 

 

 

6.9

 

 

NM

 

 

8.3

 

 

10.8

 

 

11.2

 

 

7.8

 

 

10.3

 

Net income

 

 

 

38.3

 

 

NM

 

 

16.3

 

 

21.4

 

 

23.4

 

 

21.0

 

 

18.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

0.6

 

 

0.4

 

 

1.3

 

 

2.9

 

 

1.2

 

 

1.2

 

 

4.7

 

Owners equity

 

 

 

1.0

 

 

1.0

 

 

2.8

 

 

4.6

 

 

2.5

 

 

2.4

 

 

30.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Implied Multiples Summary

 

 

 

 

    

 

 

 

High

 

75th

 

Mean

 

Median

 

25th

 

Low

 
                             

Valuation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Closing common share price

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diluted shares outstanding

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity market capitalization

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Plus: debt, preferred, min int.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Less: cash and equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Enterprise value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation multiples

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Latest 12-months ended

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue

 

 

 

2.7

 

 

1.4

 

 

1.0

 

 

0.7

 

 

0.4

 

 

0.2

 

EBIT

 

 

 

21.4

 

 

14.4

 

 

14.1

 

 

12.5

 

 

12.3

 

 

11.3

 

EBITDA

 

 

 

11.2

 

 

10.7

 

 

9.2

 

 

9.3

 

 

7.9

 

 

6.9

 

Net income

 

 

 

38.3

 

 

22.9

 

 

23.1

 

 

21.2

 

 

18.9

 

 

16.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total assets

 

 

 

4.7

 

 

2.1

 

 

1.8

 

 

1.2

 

 

0.9

 

 

0.4

 

Owners equity

 

 

 

30.5

 

 

3.7

 

 

6.4

 

 

2.5

 

 

1.7

 

 

1.0

 


Hanover Direct, Inc.

Valuation Summary - Multiples
October 30, 2006
(dollars in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Summary

 

 

Hanover
Direct Inc.

 

Multiple

 

Enterprise
Value

 

 

 

 

 

 

 

 

 

 

 Fiscal year ending December 31, 2006

 

 

 

 

 

 

 

 

 

 

 

EBIT

 

 

$

5.6

 

 

12.5

 

$

69.6

 

EBITDA

 

 

 

8.0

 

 

9.3

 

 

73.8

 

 

 

 

 

 

 

 

 

 

 

 

 

 Latest 12-months ended September 30, 2006

 

 

 

 

 

 

 

 

 

 

 

EBIT

 

 

 

7.5

 

 

11.3

 

 

84.4

 

EBITDA

 

 

 

10.0

 

 

6.9

 

 

69.0

 

Total assets

 

 

 

127.9

 

 

0.4

 

 

55.1

 

 

 

 

 

 

 

 

 

 

 

 

 

Implied Values

 

 

 

 

 

 

 

 

 

Enterprise
Value

 
 

 

                    

 

 

 

Low

 

 

 

 

$

69.6

 

Fiscal year ending December 31, 2006

 

 

Median

 

 

 

 

 

71.7

 

 

 

 

High

 

 

 

 

 

73.8

 

 

 

 

 

 

 

 

 

 

 

 

 
 

 

                  

 

 

 

Low

 

 

 

 

 

55.1

 

Latest 12-months ended September 30, 2006

 

 

Median

 

 

 

 

 

69.0

 

 

 

 

High

 

 

 

 

 

84.4

 

 

 

 

Selected
Range

 

 

 

 

Enterprise
Value

 

 

 

 

Median

 

 

 

 

$

69.6

 

 

 

 

Mean

 

 

 

 

 

70.4

 

 

 

Notes:

(1)

December 31, 2006 enterprise value calculations incorporate median multiples derived from the guideline companies.

 

(2)

Latest 12-months ended July 1, 2006 enterprise value calculations incorporate low multiples from the guideline companies.

APPENDIX D

Hanover Direct, Inc.

Precedent Mergers and Acquisitions Transactions

 

 

Closed

Seller

Target Business Description

Buyer

Enterprise
Value - EV ($mm)

EV as a Multiple of:

EBIT

EBITDA

9-May-00

Alaniz & Sons

Provider of Direct Mail

Private Equity Capital Corp

$20.9

5.0x

4.6x

27-Apr-01

Strouds, Inc.

Operates home furnishing stores

Cruttenden Partners LLC / Strouds, Inc. /Wagner/

89.0

NM

10.1x

13-Mar-02

Dr. Leonard’s Healthcare Corporation

Direct mail retailer of home healthcare, comfort, convenience and general merchandise products targeted at the “over 55” market, the fastest growing demographic.

AIG Global Investment Corp.

210.0

NM

6.1x

9-Sep-02

Johnson Outdoors, Inc.

Manufactures and markets outdoor clothing, footwear and equipment

Bain Capital LLC

62.9

11.3x

NM

25-Oct-02

Potpourri Holdings, Inc., a portfolio company of H.I.G. Capital (a)

Multi-title direct marketer of consumer products serving the personal gift, home décor, casual apparel, jewelry, and craft markets, to Linsalata Capital Partners.

Linsalata Capital Partners

ND

ND

ND

19-Dec-03

Summit America Television, Inc.

Operates a catalog business that allows for leisure shopping experiences

The E. W. Scripps Co.

225.4

7.9x

7.5x

1-Jul-04

Dmail Group SpA

Provides online information services through catalogues and internet.

Dmail Group SpA /De Carolis, Percassi & Nora Famil

29.0

NM

7.3x

8-Nov-04

Chef’s Catalog (a)

 

JH Partners

ND

ND

ND

20-Dec-04

Barney’s New York

Retails Luxury goods

Jones Apparel Group

342.9

10.4x

6.9x

4-Feb-05

Specialty Catalog Corp.

Multi-channel direct marketer of women’s wigs, hairpieces, and related products,

Edgestone Capital

57.0

NM

6.3x

22-Feb-05

Tony Barlow Australia Ltd.

Operates mens retail stores

Epicure Capital Pty Ltd.

11.6

8.3x

8.2x

15-Apr-05

Brookstone, Inc.

Sells personal care products, lawn and garden tools, and household products

OSIM International Ltd.

412.2

11.7x

8.5x

6-May-05

Senshukai Co. Ltd.

Operates a catalog mail order service

Nikko Cordial Corp.

297.3

11.9x

6.3x

16-May-05

Vermont Teddy Bear Co, Inc.

Markets and sells teddy bears and other gifts for special occasions

Hibernation Holding Co., Inc.

26.3

10.9x

7.9x

 

 

Hanover Direct, Inc.

Precedent Mergers and Acquisitions Transactions

 

 

21-Jun-05

Potpourri Group, Inc. (a)

Markets distinctive home decor, casual apparel, gifts and other unique accessories

American Capital Strategies Ltd.

ND

ND

ND

1-Nov-05

Haggar Corp.

Manufactures and sells men’s and women’s clothing

Perseus LLC / Symphony Holdings Ltd. / Infinity As

185.2

12.7x

9.2x

5-Dec-05

SkyMall Inc. - Gemstar (a)

 

Spire Capital

ND

ND

ND

10-Jun-06

Eckler’s Enterprises (a)

A market leader in multi-title catalog and Internet marketing of classic and enthusiast auto aftermarket parts for Corvette and other classic Chevy automobiles, to Century Park Capital Partners, LLC.

Century Park Capital Partners

ND

ND

ND

14-Jun-06

Oriental Trading Company

 

Carlyle Group

1,000.0

12.6x

11.8x

30-Aug-06

The Sportsman’s Guide, Inc.

Sells outdoor gear and merchandise

PPR SA

219.2

12.0x

11.1x

 

 

 

 

 

 

EBIT

EBITDA

 

 

 

 

Maximum

12.7

11.8

 

 

 

 

75th Percentile

11.9

9.0

 

 

 

 

Median

11.1

7.7

 

 

 

 

Average

10.2

7.8

 

 

 

 

25th Percentile

8.2

6.3

 

 

 

 

Minimum

5.0

4.3

 

 

 

 

 

 

 

 

 

 

 

 

Hanover 12/31/2006

 

 

 

 

EBIT

EBITDA

 

 

 

 

 

5.6

8.0

 

 

 

 

 

 

 

 

 

 

 

 

Implied Hanover Enterprise Value

 

 

 

 

 

EBIT

EBITDA

 

 

 

 

Maximum

71.0

94.4

 

 

 

 

75th Percentile

66.6

72.4

 

 

 

 

Median

62.0

61.5

 

 

 

 

Average

56.8

62.5

 

 

 

 

25th Percentile

45.9

50.9

 

 

 

 

Minimum

27.9

34.5

 

 

Note:

 

 

 

(a) Multiple has been included in calculation but not disclosed for confidentiality purposes.

 

 

 

APPENDIX E

Hanover Direct, Inc.

Summary of Previous Offers to Purchase Hanover Direct, Inc. and/or its Subsidiary Companies

 

 

 

 

Total

Estimated

Implied

2006E

Enterprise

Date

Acquiror

Terms

Consideration

EBITDA

Multiple

EBITDA

Value

10/19/2006

HDA Acquisition Corp. (Palmetto Fund, LLC)

Acquisition of 100% of the issued and outstanding common and preferred stock of Hanover Direct, Inc and its subsidiaries. 22,426,296 common shares at $1.35/share ($30,275,500). 564,819 preferred shares for $51,000,000 ($45,000,000 at closing, $6,000,000 in form of a 3-year, 7% subordinated debenture).

$109.5

$14.5

7.6

$8.0

$60.6

1/21/2004

Crosstown Traders, Inc.

Acquisition of substantially all of the assets of Hanover Direct’s Silhouettes business for cash consideration of $22 million to $24 million (5.0x normalized latest twelve months EBITDA).

22.0 - 24.0

4.4 - 4.8

5.0

8.0

40.1

3/1/2004

Avalon Equity Fund, L.P.

Acquisition of all assets of Brawn of California, Inc. for $10.5 million ($5.0 million cash at closing and $5.5 million in a 5-year subordinated note paying 7% per year).

10.5

2.3

4.6

8.0

36.6

4/28/2004

Charming Shoppes, Inc.

Acquisition of all assets of the Silhouettes brand for $22.0 million ($21.0 million cash at closing, $1.0 million cash at first anniversary date of transaction).

22.0

4.3

5.1

8.0

41.0

4/30/2004

David Pipkorn

Acquisition of all the assets of Scandia Down, LLC

2.3

0.6

3.6

8.0

28.9

 

 

 

APPENDIX F

Hanover Direct, Inc.

Series C Participating Preferred Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares outstanding

 

 

564,819

 

 

 

 

 

 

Liquidation preference

 

$           100.00

 

 

 

 

 

 

 

Total liquidation preference

 

$    56,481,900

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividend rate

 

2006

 

7.00%

 

 

 

 

 

 

 

 

 

2007

 

8.50%

 

 

 

 

 

 

 

 

 

2008

 

10.00%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Share of

 

 

 

 

 

 

 

 

 

Accrued

 

Accrued

 

 

 

 

 

 

 

Quarter End

 

Dividend

 

Dividend

 

Balance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Q1 ‘06

 

$         988,433

 

6.10%

 

$ 57,470,333

 

 

 

 

 

Q2 ‘06

 

1,005,731

 

6.21%

 

58,476,064

 

 

 

 

 

Q3 ‘06

 

1,023,331

 

6.31%

 

59,499,395

 

 

 

 

 

Q4 ‘06

 

1,041,239

 

6.42%

 

60,540,635

 

 

 

 

 

Q1 ‘07

 

1,286,488

 

7.94%

 

61,827,123

 

 

 

 

 

Q2 ‘07

 

1,313,826

 

8.11%

 

63,140,949

 

 

 

 

 

Q3 ‘07

 

1,341,745

 

8.28%

 

64,482,695

 

 

 

 

 

Q4 ‘07

 

1,370,257

 

8.45%

 

65,852,952

 

 

 

 

 

Q1 ‘08

 

1,646,324

 

10.16%

 

67,499,276

 

 

 

 

 

Q2 ‘08

 

1,687,482

 

10.41%

 

69,186,758

 

 

 

 

 

Q3 ‘08

 

1,729,669

 

10.67%

 

70,916,427

 

 

 

 

 

Q4 ‘08

 

1,772,911

 

10.94%

 

72,689,337

 

 

 

 

 

 

 

$   16,207,437

 

100%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation

 

Discount

 

 

 

 

 

 

 

Date

 

Rate

 

 

 

10/1/2008

 

 

 

 

 

 

 

 

 

 

 

 

 

11/1/2006

 

10.0%

 

 

 

$ 60,546,282

- Present

Value

 

 

 

 

11.0%

 

 

 

59,504,516

 

 

 

 

12.0%

 

 

 

58,489,779

 

 

 

 

13.0%

 

 

 

57,501,137

 

 

 

 

14.0%

 

 

 

56,537,697

 

 

 

 

15.0%

 

 

 

55,598,605

 

 

 

 

16.0%

 

 

 

54,683,040

 

 

 

 

17.0%

 

 

 

53,790,218

 

 

 

 

18.0%

 

 

 

52,919,387

 

 

 

 

19.0%

 

 

 

52,069,826

 

 

 

 

20.0%

 

 

 

51,240,843

 

 

 

 

21.0%

 

 

 

50,431,774

 

 

 

 

22.0%

 

 

 

49,641,982

 

 

 

 

23.0%

 

 

 

48,870,856

 

 

 

 

24.0%

 

 

 

48,117,808

 

 

 

 

25.0%

 

 

 

47,382,273

 

 

 

 

 

 

 

 

 

 

 

 

 

 


APPENDIX G

 

Hanover Direct, Inc.
 

Estimated Present Value of Net Operating Losses

(figures in thousands)

 

 

 

 

 

Assumptions

 Gross net operating losses

 

$

57,505

 

 

 

 

 

 

 IRC Section 382 annual limitation

 

$

3,029

 

 

 

 

 

 

 Effective income tax rate

 

 

40.0

%

 

 

 

 

 

 Discount rate

 

 

22.0

% 

 

 

 

23.0

% 

 

 

 

24.0

% 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2005

 

2006

 

2007

 

2008

 

2009

 

2010

 

2011

 

2012

 

 

 

                                

Projected pretax income(1)

 

 

 

 

$

(6,296

)

$

(7,097

)

$

2,509

 

$

(5,516

)

$

3,029

 

$

3,029

 

$

3,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss (“NOL”)

 

$

57,505

 

 

63,801

 

 

70,898

 

 

68,389

 

 

73,905

 

 

70,876

 

 

67,847

 

 

64,818

 

IRC Section 382 limitation

 

 

 

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

NOL utilized

 

 

 

 

 

—

 

 

—

 

 

2,509

 

 

—

 

 

3,029

 

 

3,029

 

 

3,029

 

Tax shield benefit

 

 

 

 

 

—

 

 

—

 

 

1,004

 

 

—

 

 

1,212

 

 

1,212

 

 

1,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Present value period

 

 

 

 

 

0.17

 

 

1.17

 

 

2.17

 

 

3.17

 

 

4.17

 

 

5.17

 

 

6.17

 

Present value factor @ 22.0%

 

 

 

 

 

0.97

 

 

0.79

 

 

0.65

 

 

0.53

 

 

0.44

 

 

0.36

 

 

0.29

 

 

 

 

 

 

                                          

Net present value of NOL benefit

 

 

 

 

$

—

 

$

—

 

$

652

 

$

—

 

$

529

 

$

434

 

$

355

 

 

 

 

 

 

                                          

Total present value of NOL benefit                     $ 3,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected pretax income(1)

 

 

 

 

$

(6,296

)

$

(7,097

)

$

2,509

 

$

(5,516

)

$

3,029

 

$

3,029

 

$

3,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss (“NOL”)

 

$

57,505

 

 

63,801

 

 

70,898

 

 

68,389

 

 

73,905

 

 

70,876

 

 

67,847

 

 

64,818

 

IRC Section 382 limitation

 

 

 

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

NOL utilized

 

 

 

 

 

—

 

 

—

 

 

2,509

 

 

—

 

 

3,029

 

 

3,029

 

 

3,029

 

Tax shield benefit

 

 

 

 

 

—

 

 

—

 

 

1,004

 

 

—

 

 

1,212

 

 

1,212

 

 

1,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Present value period

 

 

 

 

 

0.17

 

 

1.17

 

 

2.17

 

 

3.17

 

 

4.17

 

 

5.17

 

 

6.17

 

Present value factor @ 23.0%

 

 

 

 

 

0.97

 

 

0.79

 

 

0.64

 

 

0.52

 

 

0.42

 

 

0.34

 

 

0.28

 

 

 

 

 

 

                                          

Net present value of NOL benefit

 

 

 

 

$

—

 

$

—

 

$

641

 

$

—

 

$

511

 

$

416

 

$

338

 

 

 

 

 

 

                                          

Total present value of NOL benefit                     $ 3,357

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected pretax income(1)

 

 

 

 

$

(6,296

)

$

(7,097

)

$

2,509

 

$

(5,516

)

$

3,029

 

$

3,029

 

$

3,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss (“NOL”)

 

$

57,505

 

 

63,801

 

 

70,898

 

 

68,389

 

 

73,905

 

 

70,876

 

 

67,847

 

 

64,818

 

IRC Section 382 limitation

 

 

 

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

NOL utilized

 

 

 

 

 

—

 

 

—

 

 

2,509

 

 

—

 

 

3,029

 

 

3,029

 

 

3,029

 

Tax shield benefit

 

 

 

 

 

—

 

 

—

 

 

1,004

 

 

—

 

 

1,212

 

 

1,212

 

 

1,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Present value period

 

 

 

 

 

0.17

 

 

1.17

 

 

2.17

 

 

3.17

 

 

4.17

 

 

5.17

 

 

6.17

 

Present value factor @ 24.0%

 

 

 

 

 

0.96

 

 

0.78

 

 

0.63

 

 

0.51

 

 

0.41

 

 

0.33

 

 

0.27

 

 

 

 

 

 

                                          

Net present value of NOL benefit

 

 

 

 

$

—

 

$

—

 

$

630

 

$

—

 

$

494

 

$

399

 

$

322

 

 

 

 

 

 

                                          

Total present value of NOL benefit                     $ 3,170

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2013

 

2014

 

2015

 

2016

 

2017

 

2018

 

2019

 

 

 

                            

Projected pretax income(1)

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss (“NOL”)

 

 

61,789

 

 

58,760

 

 

55,731

 

 

52,702

 

 

49,673

 

 

46,644

 

 

43,615

 

IRC Section 382 limitation

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

NOL utilized

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

Tax shield benefit

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Present value period

 

 

7.17

 

 

8.17

 

 

9.17

 

 

10.17

 

 

11.17

 

 

12.17

 

 

13.17

 

Present value factor @ 22.0%

 

 

0.24

 

 

0.20

 

 

0.16

 

 

0.13

 

 

0.11

 

 

0.09

 

 

0.07

 

 

 

                                          

Net present value of NOL benefit

 

$

291

 

$

239

 

$

196

 

$

160

 

$

132

 

$

108

 

$

88

 

 

 

                                          

Total present value of NOL benefit                                $ 3,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected pretax income(1)

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss (“NOL”)

 

 

61,789

 

 

58,760

 

 

55,731

 

 

52,702

 

 

49,673

 

 

46,644

 

 

43,615

 

IRC Section 382 limitation

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

NOL utilized

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

Tax shield benefit

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Present value period

 

 

7.17

 

 

8.17

 

 

9.17

 

 

10.17

 

 

11.17

 

 

12.17

 

 

13.17

 

Present value factor @ 23.0%

 

 

0.23

 

 

0.18

 

 

0.15

 

 

0.12

 

 

0.10

 

 

0.08

 

 

0.07

 

 

 

                                          

Net present value of NOL benefit

 

$

275

 

$

223

 

$

182

 

$

148

 

$

120

 

$

98

 

$

79

 

 

 

                                          

Total present value of NOL benefit                                $ 3,357

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected pretax income(1)

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss (“NOL”)

 

 

61,789

 

 

58,760

 

 

55,731

 

 

52,702

 

 

49,673

 

 

46,644

 

 

43,615

 

IRC Section 382 limitation

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

NOL utilized

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

Tax shield benefit

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Present value period

 

 

7.17

 

 

8.17

 

 

9.17

 

 

10.17

 

 

11.17

 

 

12.17

 

 

13.17

 

Present value factor @ 24.0%

 

 

0.21

 

 

0.17

 

 

0.14

 

 

0.11

 

 

0.09

 

 

0.07

 

 

0.06

 

 

 

                                          

Net present value of NOL benefit

 

$

259

 

$

209

 

$

169

 

$

136

 

$

110

 

$

88

 

$

71

 

 

 

                                          

Total present value of NOL benefit                                $ 3,170

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Assumes Hanover will be able to fully utilize NOLs up to the

 

 

 

Section 382(l)(5) cap beginning in 2010.


 

Hanover Direct, Inc.
 

Estimated Present Value of Net Operating Losses

(figures in thousands)

 

 

 

 

 

Assumptions

 Gross net operating losses

 

$

57,505

 

 

 

 

 

 

 IRC Section 382 annual limitation

 

$

3,029

 

 

 

 

 

 

 Effective income tax rate

 

 

40.0

%

 

 

 

 

 

 Discount rate

 

 

22.0

% 

 

 

 

23.0

% 

 

 

 

24.0

% 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2020

 

2021

 

2022

 

2023

 

2024

 

2025

 

2026

 

2027

 

 

 

                                                

Projected pretax income(1)

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss (“NOL”)

 

 

40,586

 

 

37,557

 

 

34,528

 

 

31,499

 

 

28,470

 

 

25,441

 

 

22,412

 

 

19,383

 

IRC Section 382 limitation

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

NOL utilized

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

Tax shield benefit

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Present value period

 

 

14.17

 

 

15.17

 

 

16.17

 

 

17.17

 

 

18.17

 

 

19.17

 

 

20.17

 

 

21.17

 

Present value factor @ 22.0%

 

 

0.06

 

 

0.05

 

 

0.04

 

 

0.03

 

 

0.03

 

 

0.02

 

 

0.02

 

 

0.01

 

 

 

                                                

Net present value of NOL benefit

 

$

72

 

$

59

 

$

49

 

$

40

 

$

33

 

$

27

 

$

22

 

$

18

 

 

 

                                                

Total present value of NOL benefit                 $ 3,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected pretax income(1)

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss (“NOL”)

 

 

40,586

 

 

37,557

 

 

34,528

 

 

31,499

 

 

28,470

 

 

25,441

 

 

22,412

 

 

19,383

 

IRC Section 382 limitation

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

NOL utilized

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

Tax shield benefit

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Present value period

 

 

14.17

 

 

15.17

 

 

16.17

 

 

17.17

 

 

18.17

 

 

19.17

 

 

20.17

 

 

21.17

 

Present value factor @ 23.0%

 

 

0.05

 

 

0.04

 

 

0.04

 

 

0.03

 

 

0.02

 

 

0.02

 

 

0.02

 

 

0.01

 

 

 

                                                

Net present value of NOL benefit

 

$

65

 

$

52

 

$

43

 

$

35

 

$

28

 

$

23

 

$

19

 

$

15

 

 

 

                                                

Total present value of NOL benefit                 $ 3,357

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected pretax income(1)

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss (“NOL”)

 

 

40,586

 

 

37,557

 

 

34,528

 

 

31,499

 

 

28,470

 

 

25,441

 

 

22,412

 

 

19,383

 

IRC Section 382 limitation

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

NOL utilized

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

Tax shield benefit

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Present value period

 

 

14.17

 

 

15.17

 

 

16.17

 

 

17.17

 

 

18.17

 

 

19.17

 

 

20.17

 

 

21.17

 

Present value factor @ 24.0%

 

 

0.05

 

 

0.04

 

 

0.03

 

 

0.02

 

 

0.02

 

 

0.02

 

 

0.01

 

 

0.01

 

 

 

                                                

Net present value of NOL benefit

 

$

58

 

$

46

 

$

37

 

$

30

 

$

24

 

$

20

 

$

16

 

$

13

 

 

 

                                                

Total present value of NOL benefit                 $ 3,170

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2028

 

2029

 

2030

 

2031

 

2032

 

2033

 

2034

 

 

 

                            

Projected pretax income(1)

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

1,209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss (“NOL”)

 

 

16,354

 

 

13,325

 

 

10,296

 

 

7,267

 

 

4,238

 

 

1,209

 

 

—

 

IRC Section 382 limitation

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

NOL utilized

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

1,209

 

Tax shield benefit

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Present value period

 

 

22.17

 

 

23.17

 

 

24.17

 

 

25.17

 

 

26.17

 

 

27.17

 

 

28.17

 

Present value factor @ 22.0%

 

 

0.01

 

 

0.01

 

 

0.01

 

 

0.01

 

 

0.01

 

 

0.00

 

 

0.00

 

 

 

                                          

Net present value of NOL benefit

 

$

15

 

$

12

 

$

10

 

$

8

 

$

7

 

$

5

 

$

2

 

 

 

                                          

Total present value of NOL benefit                                                 $ 3,562

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected pretax income(1)

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

1,209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss (“NOL”)

 

 

16,354

 

 

13,325

 

 

10,296

 

 

7,267

 

 

4,238

 

 

1,209

 

 

—

 

IRC Section 382 limitation

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

NOL utilized

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

1,209

 

Tax shield benefit

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Present value period

 

 

22.17

 

 

23.17

 

 

24.17

 

 

25.17

 

 

26.17

 

 

27.17

 

 

28.17

 

Present value factor @ 23.0%

 

 

0.01

 

 

0.01

 

 

0.01

 

 

0.01

 

 

0.00

 

 

0.00

 

 

0.00

 

 

 

                                          

Net present value of NOL benefit

 

$

12

 

$

10

 

$

8

 

$

7

 

$

5

 

$

4

 

$

1

 

 

 

                                          

Total present value of NOL benefit                                                 $ 3,357

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected pretax income(1)

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

3,029

 

$

1,209

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net operating loss (“NOL”)

 

 

16,354

 

 

13,325

 

 

10,296

 

 

7,267

 

 

4,238

 

 

1,209

 

 

—

 

IRC Section 382 limitation

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

NOL utilized

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

3,029

 

 

1,209

 

Tax shield benefit

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

1,212

 

 

484

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Present value period

 

 

22.17

 

 

23.17

 

 

24.17

 

 

25.17

 

 

26.17

 

 

27.17

 

 

28.17

 

Present value factor @ 24.0%

 

 

0.01

 

 

0.01

 

 

0.01

 

 

0.00

 

 

0.00

 

 

0.00

 

 

0.00

 

 

 

                                          

Net present value of NOL benefit

 

$

10

 

$

8

 

$

7

 

$

5

 

$

4

 

$

4

 

$

1

 

 

 

                                          

Total present value of NOL benefit                                                 $ 3,170

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

Assumes Hanover will be able to fully utilize NOLs up to the

 

 

 

Section 382(l)(5) cap beginning in 2010.

APPENDIX H

Hanover Direct, Inc.

 

 

Elimination of Unprofitable Titles

 

(figures in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Projected EBITDA - 2006

 

$      (1,221)

 

 

 

 

 

 

Selected EBITDA Multiples

 

 

 

 

 

 

 

 

 

Guideline public companies

6.9x

 

 

 

 

 

 

 

Precedent M&A transactions

4.3x

 

 

 

 

 

 

Implied enterprise value

 

 

 

 

 

 

 

 

 

Guideline public companies

$      (8,425)

 

 

 

 

 

 

 

Precedent M&A transactions

(5,250)

 

 

 

APPENDIX I

Hanover Direct, Inc.

Historical Stock Prices - Daily

For The Period January 1, 2003 - November 1, 2006

 

Date

 

Close

 

Volume

 

Statistics

 

 

 

 

 

 

 

 

 

 

 

 

 

1-Nov-06

 

$ 1.25

 

7,200

 

Average daily trading volume

 

19,481

31-Oct-06

 

1.39

 

2,400

 

Shares outstanding

 

22,426,296

30-Oct-06

 

1.24

 

6,000

 

 

% of shares outstanding

 

0.09%

27-Oct-06

 

1.30

 

10,100

 

 

 

 

 

 

 

 

26-Oct-06

 

1.30

 

8,900

 

Standard deviation

 

 

25-Oct-06

 

1.35

 

8,400

 

 

Closing price

$             0.61

 

 

24-Oct-06

 

1.15

 

100

 

 

Trading volume

48,267

 

 

23-Oct-06

 

1.10

 

8,200

 

 

 

 

 

 

 

 

20-Oct-06

 

1.25

 

-

 

Highs

 

 

 

 

19-Oct-06

 

1.25

 

200

 

 

Closing price

$             3.00

 

28-Jan-04

18-Oct-06

 

1.20

 

12,300

 

 

Trading volume

670,300

 

27-Jan-04

17-Oct-06

 

1.25

 

4,900

 

 

 

 

 

 

 

 

16-Oct-06

 

1.25

 

2,000

 

Lows

 

 

 

 

13-Oct-06

 

1.24

 

4,200

 

 

Closing price

$             0.69

 

30-Mar-05

12-Oct-06

 

1.25

 

6,300

 

 

Trading volume

-

 

Often

11-Oct-06

 

1.25

 

2,200

 

 

 

 

 

 

 

 

10-Oct-06

 

1.26

 

8,400

 

 

 

 

 

 

 

 

9-Oct-06

 

1.25

 

5,600

 

 

 

 

 

 

 

 

6-Oct-06

 

1.21

 

2,600

 

 

 

 

 

 

 

 

5-Oct-06

 

1.21

 

2,600

 

 

 

 

 

 

 

 

4-Oct-06

 

1.25

 

5,900

 

 

 

 

 

 

 

 

3-Oct-06

 

1.25

 

6,200

 

 

 

 

 

 

 

 

2-Oct-06

 

1.35

 

16,600

 

 

 

 

 

 

 

 

29-Sep-06

 

1.35

 

800

 

 

 

 

 

 

 

 

28-Sep-06

 

1.35

 

500

 

 

 

 

 

 

 

 

27-Sep-06

 

1.35

 

3,000

 

 

 

 

 

 

 

 

26-Sep-06

 

1.40

 

4,000

 

 

 

 

 

 

 

 

25-Sep-06

 

1.30

 

200

 

 

 

 

 

 

 

 

22-Sep-06

 

1.40

 

4,200

 

 

 

 

 

 

 

 

21-Sep-06

 

1.30

 

1,100

 

 

 

 

 

 

 

 

20-Sep-06

 

1.40

 

3,200

 

 

 

 

 

 

 

 

19-Sep-06

 

1.40

 

6,600

 

 

 

 

 

 

 

 

18-Sep-06

 

1.40

 

1,300

 

 

 

 

 

 

 

 

15-Sep-06

 

1.40

 

-

 

 

 

 

 

 

 

 

14-Sep-06

 

1.40

 

4,400

 

 

 

 

 

 

 

 

 

 

 

13-Sep-06

 

1.40

 

8,300

 

 

 

 

 

 

 

 

12-Sep-06

 

1.35

 

14,500

 

 

 

 

 

 

 

 

11-Sep-06

 

1.40

 

-

 

 

 

 

 

 

 

 

8-Sep-06

 

1.40

 

2,400

 

 

 

 

 

 

 

 

7-Sep-06

 

1.40

 

20,400

 

 

 

 

 

 

 

 

6-Sep-06

 

1.40

 

-

 

 

 

 

 

 

 

 

5-Sep-06

 

1.40

 

900

 

 

 

 

 

 

 

 

1-Sep-06

 

1.40

 

1,000

 

 

 

 

 

 

 

 

31-Aug-06

 

1.40

 

3,500

 

 

 

 

 

 

 

 

30-Aug-06

 

1.40

 

1,600

 

 

 

 

 

 

 

 

29-Aug-06

 

1.40

 

-

 

 

 

 

 

 

 

 

28-Aug-06

 

1.40

 

900

 

 

 

 

 

 

 

 

25-Aug-06

 

1.40

 

2,300

 

 

 

 

 

 

 

 

24-Aug-06

 

1.25

 

1,400

 

 

 

 

 

 

 

 

23-Aug-06

 

1.15

 

11,300

 

 

 

 

 

 

 

 

22-Aug-06

 

1.01

 

2,500

 

 

 

 

 

 

 

 

21-Aug-06

 

1.25

 

1,200

 

 

 

 

 

 

 

 

18-Aug-06

 

1.30

 

2,300

 

 

 

 

 

 

 

 

17-Aug-06

 

1.25

 

6,700

 

 

 

 

 

 

 

 

16-Aug-06

 

1.35

 

600

 

 

 

 

 

 

 

 

15-Aug-06

 

1.25

 

1,800

 

 

 

 

 

 

 

 

14-Aug-06

 

0.85

 

10,100

 

 

 

 

 

 

 

 

11-Aug-06

 

1.25

 

5,200

 

 

 

 

 

 

 

 

10-Aug-06

 

1.35

 

500

 

 

 

 

 

 

 

 

9-Aug-06

 

1.45

 

-

 

 

 

 

 

 

 

 

8-Aug-06

 

1.45

 

1,900

 

 

 

 

 

 

 

 

7-Aug-06

 

1.25

 

1,300

 

 

 

 

 

 

 

 

4-Aug-06

 

1.25

 

800

 

 

 

 

 

 

 

 

3-Aug-06

 

1.25

 

5,500

 

 

 

 

 

 

 

 

2-Aug-06

 

1.55

 

-

 

 

 

 

 

 

 

 

1-Aug-06

 

1.55

 

3,900

 

 

 

 

 

 

 

 

31-Jul-06

 

1.55

 

500

 

 

 

 

 

 

 

 

28-Jul-06

 

1.25

 

300

 

 

 

 

 

 

 

 

27-Jul-06

 

1.20

 

200

 

 

 

 

 

 

 

 

26-Jul-06

 

1.50

 

200

 

 

 

 

 

 

 

 

25-Jul-06

 

1.55

 

21,000

 

 

 

 

 

 

 

 

24-Jul-06

 

1.30

 

3,500

 

 

 

 

 

 

 

 

21-Jul-06

 

1.50

 

1,000

 

 

 

 

 

 

 

 

20-Jul-06

 

1.50

 

53,800

 

 

 

 

 

 

 

 

 

 

 

19-Jul-06

 

1.45

 

74,400

 

 

 

 

 

 

 

 

18-Jul-06

 

1.30

 

300

 

 

 

 

 

 

 

 

17-Jul-06

 

1.25

 

2,000

 

 

 

 

 

 

 

 

14-Jul-06

 

1.25

 

13,500

 

 

 

 

 

 

 

 

13-Jul-06

 

1.25

 

5,200

 

 

 

 

 

 

 

 

12-Jul-06

 

1.25

 

-

 

 

 

 

 

 

 

 

11-Jul-06

 

1.25

 

2,800

 

 

 

 

 

 

 

 

10-Jul-06

 

1.25

 

500

 

 

 

 

 

 

 

 

7-Jul-06

 

1.25

 

34,700

 

 

 

 

 

 

 

 

6-Jul-06

 

1.25

 

38,000

 

 

 

 

 

 

 

 

5-Jul-06

 

1.25

 

1,400

 

 

 

 

 

 

 

 

3-Jul-06

 

1.25

 

7,200

 

 

 

 

 

 

 

 

30-Jun-06

 

1.30

 

14,400

 

 

 

 

 

 

 

 

29-Jun-06

 

1.30

 

500

 

 

 

 

 

 

 

 

28-Jun-06

 

1.30

 

400

 

 

 

 

 

 

 

 

27-Jun-06

 

1.05

 

400

 

 

 

 

 

 

 

 

26-Jun-06

 

1.30

 

300

 

 

 

 

 

 

 

 

23-Jun-06

 

1.30

 

2,000

 

 

 

 

 

 

 

 

22-Jun-06

 

1.25

 

-

 

 

 

 

 

 

 

 

21-Jun-06

 

1.25

 

-

 

 

 

 

 

 

 

 

20-Jun-06

 

1.25

 

45,300

 

 

 

 

 

 

 

 

19-Jun-06

 

1.20

 

-

 

 

 

 

 

 

 

 

16-Jun-06

 

1.20

 

2,500

 

 

 

 

 

 

 

 

15-Jun-06

 

1.30

 

3,800

 

 

 

 

 

 

 

 

14-Jun-06

 

1.25

 

20,100

 

 

 

 

 

 

 

 

13-Jun-06

 

1.17

 

100

 

 

 

 

 

 

 

 

12-Jun-06

 

1.38

 

8,400

 

 

 

 

 

 

 

 

9-Jun-06

 

1.21

 

4,000

 

 

 

 

 

 

 

 

8-Jun-06

 

1.17

 

600

 

 

 

 

 

 

 

 

7-Jun-06

 

1.17

 

500

 

 

 

 

 

 

 

 

6-Jun-06

 

1.21

 

18,100

 

 

 

 

 

 

 

 

5-Jun-06

 

1.25

 

100

 

 

 

 

 

 

 

 

2-Jun-06

 

1.20

 

200

 

 

 

 

 

 

 

 

1-Jun-06

 

1.30

 

9,000

 

 

 

 

 

 

 

 

31-May-06

 

1.20

 

200

 

 

 

 

 

 

 

 

30-May-06

 

1.20

 

33,000

 

 

 

 

 

 

 

 

26-May-06

 

1.00

 

52,800

 

 

 

 

 

 

 

 

25-May-06

 

1.43

 

500

 

 

 

 

 

 

 

 

24-May-06

 

1.35

 

14,600

 

 

 

 

 

 

 

 

 

 

 

23-May-06

 

1.36

 

900

 

 

 

 

 

 

 

 

22-May-06

 

1.25

 

4,400

 

 

 

 

 

 

 

 

19-May-06

 

1.46

 

11,600

 

 

 

 

 

 

 

 

18-May-06

 

1.48

 

45,600

 

 

 

 

 

 

 

 

17-May-06

 

1.46

 

12,200

 

 

 

 

 

 

 

 

16-May-06

 

1.45

 

-

 

 

 

 

 

 

 

 

15-May-06

 

1.45

 

4,200

 

 

 

 

 

 

 

 

12-May-06

 

1.45

 

100

 

 

 

 

 

 

 

 

11-May-06

 

1.45

 

400

 

 

 

 

 

 

 

 

10-May-06

 

1.45

 

1,200

 

 

 

 

 

 

 

 

9-May-06

 

1.45

 

600

 

 

 

 

 

 

 

 

8-May-06

 

1.45

 

16,400

 

 

 

 

 

 

 

 

5-May-06

 

1.40

 

1,200

 

 

 

 

 

 

 

 

4-May-06

 

1.40

 

400

 

 

 

 

 

 

 

 

3-May-06

 

1.50

 

100

 

 

 

 

 

 

 

 

2-May-06

 

1.52

 

1,000

 

 

 

 

 

 

 

 

1-May-06

 

1.50

 

94,100

 

 

 

 

 

 

 

 

28-Apr-06

 

1.40

 

1,700

 

 

 

 

 

 

 

 

27-Apr-06

 

1.40

 

200

 

 

 

 

 

 

 

 

26-Apr-06

 

1.45

 

200

 

 

 

 

 

 

 

 

25-Apr-06

 

1.40

 

11,400

 

 

 

 

 

 

 

 

24-Apr-06

 

1.45

 

5,800

 

 

 

 

 

 

 

 

21-Apr-06

 

1.50

 

1,700

 

 

 

 

 

 

 

 

20-Apr-06

 

1.48

 

800

 

 

 

 

 

 

 

 

19-Apr-06

 

1.50

 

2,400

 

 

 

 

 

 

 

 

18-Apr-06

 

1.50

 

6,400

 

 

 

 

 

 

 

 

17-Apr-06

 

1.50

 

2,000

 

 

 

 

 

 

 

 

13-Apr-06

 

1.40

 

1,100

 

 

 

 

 

 

 

 

12-Apr-06

 

1.50

 

12,800

 

 

 

 

 

 

 

 

11-Apr-06

 

1.40

 

500

 

 

 

 

 

 

 

 

10-Apr-06

 

1.45

 

3,100

 

 

 

 

 

 

 

 

7-Apr-06

 

1.40

 

700

 

 

 

 

 

 

 

 

6-Apr-06

 

1.48

 

23,200

 

 

 

 

 

 

 

 

5-Apr-06

 

1.35

 

300

 

 

 

 

 

 

 

 

4-Apr-06

 

1.34

 

2,900

 

 

 

 

 

 

 

 

3-Apr-06

 

1.33

 

2,000

 

 

 

 

 

 

 

 

31-Mar-06

 

1.33

 

200

 

 

 

 

 

 

 

 

30-Mar-06

 

1.35

 

200

 

 

 

 

 

 

 

 

29-Mar-06

 

1.35

 

3,900

 

 

 

 

 

 

 

 

 

 

 

28-Mar-06

 

1.33

 

43,400

 

 

 

 

 

 

 

 

27-Mar-06

 

1.34

 

10,500

 

 

 

 

 

 

 

 

24-Mar-06

 

1.34

 

10,400

 

 

 

 

 

 

 

 

23-Mar-06

 

1.55

 

4,600

 

 

 

 

 

 

 

 

22-Mar-06

 

1.32

 

2,500

 

 

 

 

 

 

 

 

21-Mar-06

 

1.32

 

1,600

 

 

 

 

 

 

 

 

20-Mar-06

 

1.37

 

6,000

 

 

 

 

 

 

 

 

17-Mar-06

 

1.32

 

2,700

 

 

 

 

 

 

 

 

16-Mar-06

 

1.32

 

10,800

 

 

 

 

 

 

 

 

15-Mar-06

 

1.32

 

52,100

 

 

 

 

 

 

 

 

14-Mar-06

 

1.32

 

-

 

 

 

 

 

 

 

 

13-Mar-06

 

1.32

 

6,200

 

 

 

 

 

 

 

 

10-Mar-06

 

1.32

 

5,600

 

 

 

 

 

 

 

 

9-Mar-06

 

1.34

 

31,500

 

 

 

 

 

 

 

 

8-Mar-06

 

1.32

 

36,700

 

 

 

 

 

 

 

 

7-Mar-06

 

1.35

 

25,700

 

 

 

 

 

 

 

 

6-Mar-06

 

1.28

 

24,400

 

 

 

 

 

 

 

 

3-Mar-06

 

1.30

 

56,600

 

 

 

 

 

 

 

 

2-Mar-06

 

1.35

 

6,700

 

 

 

 

 

 

 

 

1-Mar-06

 

1.36

 

38,200

 

 

 

 

 

 

 

 

28-Feb-06

 

1.40

 

31,600

 

 

 

 

 

 

 

 

27-Feb-06

 

1.50

 

105,600

 

 

 

 

 

 

 

 

24-Feb-06

 

2.55

 

6,300

 

 

 

 

 

 

 

 

23-Feb-06

 

2.75

 

24,000

 

 

 

 

 

 

 

 

22-Feb-06

 

2.40

 

56,900

 

 

 

 

 

 

 

 

21-Feb-06

 

2.77

 

33,000

 

 

 

 

 

 

 

 

17-Feb-06

 

2.80

 

5,400

 

 

 

 

 

 

 

 

16-Feb-06

 

2.80

 

2,900

 

 

 

 

 

 

 

 

15-Feb-06

 

2.80

 

6,200

 

 

 

 

 

 

 

 

14-Feb-06

 

2.90

 

12,000

 

 

 

 

 

 

 

 

13-Feb-06

 

2.95

 

19,800

 

 

 

 

 

 

 

 

10-Feb-06

 

2.95

 

3,500

 

 

 

 

 

 

 

 

9-Feb-06

 

2.99

 

21,400

 

 

 

 

 

 

 

 

8-Feb-06

 

2.99

 

11,200

 

 

 

 

 

 

 

 

7-Feb-06

 

2.85

 

10,100

 

 

 

 

 

 

 

 

6-Feb-06

 

2.93

 

33,900

 

 

 

 

 

 

 

 

3-Feb-06

 

2.79

 

30,900

 

 

 

 

 

 

 

 

2-Feb-06

 

2.30

 

2,500

 

 

 

 

 

 

 

 

1-Feb-06

 

2.40

 

2,400

 

 

 

 

 

 

 

 

 

 

 

31-Jan-06

 

2.40

 

22,000

 

 

 

 

 

 

 

 

30-Jan-06

 

2.45

 

16,400

 

 

 

 

 

 

 

 

27-Jan-06

 

2.46

 

12,100

 

 

 

 

 

 

 

 

26-Jan-06

 

2.66

 

29,700

 

 

 

 

 

 

 

 

25-Jan-06

 

2.50

 

39,200

 

 

 

 

 

 

 

 

24-Jan-06

 

2.10

 

11,800

 

 

 

 

 

 

 

 

23-Jan-06

 

2.59

 

70,700

 

 

 

 

 

 

 

 

20-Jan-06

 

1.98

 

33,600

 

 

 

 

 

 

 

 

19-Jan-06

 

1.89

 

48,400

 

 

 

 

 

 

 

 

18-Jan-06

 

1.70

 

14,400

 

 

 

 

 

 

 

 

17-Jan-06

 

1.55

 

19,100

 

 

 

 

 

 

 

 

13-Jan-06

 

1.60

 

21,400

 

 

 

 

 

 

 

 

12-Jan-06

 

1.60

 

12,200

 

 

 

 

 

 

 

 

11-Jan-06

 

1.64

 

13,100

 

 

 

 

 

 

 

 

10-Jan-06

 

1.49

 

5,200

 

 

 

 

 

 

 

 

9-Jan-06

 

1.60

 

6,700

 

 

 

 

 

 

 

 

6-Jan-06

 

1.60

 

17,900

 

 

 

 

 

 

 

 

5-Jan-06

 

1.50

 

25,100

 

 

 

 

 

 

 

 

4-Jan-06

 

1.50

 

2,700

 

 

 

 

 

 

 

 

3-Jan-06

 

1.44

 

12,700

 

 

 

 

 

 

 

 

30-Dec-05

 

1.50

 

6,400

 

 

 

 

 

 

 

 

29-Dec-05

 

1.44

 

10,400

 

 

 

 

 

 

 

 

28-Dec-05

 

1.45

 

2,300

 

 

 

 

 

 

 

 

27-Dec-05

 

1.44

 

27,700

 

 

 

 

 

 

 

 

23-Dec-05

 

1.50

 

10,400

 

 

 

 

 

 

 

 

22-Dec-05

 

1.44

 

10,100

 

 

 

 

 

 

 

 

21-Dec-05

 

1.44

 

2,300

 

 

 

 

 

 

 

 

20-Dec-05

 

1.44

 

78,900

 

 

 

 

 

 

 

 

19-Dec-05

 

1.40

 

82,300

 

 

 

 

 

 

 

 

16-Dec-05

 

1.50

 

47,600

 

 

 

 

 

 

 

 

15-Dec-05

 

1.35

 

14,700

 

 

 

 

 

 

 

 

14-Dec-05

 

1.39

 

55,600

 

 

 

 

 

 

 

 

13-Dec-05

 

1.41

 

44,800

 

 

 

 

 

 

 

 

12-Dec-05

 

1.40

 

84,800

 

 

 

 

 

 

 

 

9-Dec-05

 

1.22

 

4,500

 

 

 

 

 

 

 

 

8-Dec-05

 

1.24

 

19,300

 

 

 

 

 

 

 

 

7-Dec-05

 

1.30

 

3,900

 

 

 

 

 

 

 

 

6-Dec-05

 

1.25

 

3,900

 

 

 

 

 

 

 

 

5-Dec-05

 

1.21

 

14,700

 

 

 

 

 

 

 

 

 

 

 

2-Dec-05

 

1.41

 

18,600

 

 

 

 

 

 

 

 

1-Dec-05

 

1.21

 

2,200

 

 

 

 

 

 

 

 

30-Nov-05

 

1.25

 

3,400

 

 

 

 

 

 

 

 

29-Nov-05

 

1.30

 

22,300

 

 

 

 

 

 

 

 

28-Nov-05

 

1.22

 

2,700

 

 

 

 

 

 

 

 

25-Nov-05

 

1.25

 

16,000

 

 

 

 

 

 

 

 

23-Nov-05

 

1.25

 

2,100

 

 

 

 

 

 

 

 

22-Nov-05

 

1.17

 

3,100

 

 

 

 

 

 

 

 

21-Nov-05

 

1.15

 

-

 

 

 

 

 

 

 

 

18-Nov-05

 

1.15

 

500

 

 

 

 

 

 

 

 

17-Nov-05

 

1.24

 

10,800

 

 

 

 

 

 

 

 

16-Nov-05

 

1.25

 

4,300

 

 

 

 

 

 

 

 

15-Nov-05

 

1.25

 

22,100

 

 

 

 

 

 

 

 

14-Nov-05

 

1.32

 

14,300

 

 

 

 

 

 

 

 

11-Nov-05

 

1.32

 

500

 

 

 

 

 

 

 

 

10-Nov-05

 

1.34

 

4,700

 

 

 

 

 

 

 

 

9-Nov-05

 

1.32

 

100

 

 

 

 

 

 

 

 

8-Nov-05

 

1.35

 

-

 

 

 

 

 

 

 

 

7-Nov-05

 

1.35

 

1,900

 

 

 

 

 

 

 

 

4-Nov-05

 

1.40

 

27,000

 

 

 

 

 

 

 

 

3-Nov-05

 

1.35

 

4,900

 

 

 

 

 

 

 

 

2-Nov-05

 

1.30

 

18,500

 

 

 

 

 

 

 

 

1-Nov-05

 

1.32

 

1,500

 

 

 

 

 

 

 

 

31-Oct-05

 

1.28

 

41,700

 

 

 

 

 

 

 

 

28-Oct-05

 

1.28

 

79,000

 

 

 

 

 

 

 

 

27-Oct-05

 

1.00

 

47,600

 

 

 

 

 

 

 

 

26-Oct-05

 

1.00

 

1,100

 

 

 

 

 

 

 

 

25-Oct-05

 

0.96

 

-

 

 

 

 

 

 

 

 

24-Oct-05

 

0.96

 

9,300

 

 

 

 

 

 

 

 

21-Oct-05

 

0.96

 

9,000

 

 

 

 

 

 

 

 

20-Oct-05

 

0.95

 

52,900

 

 

 

 

 

 

 

 

19-Oct-05

 

1.05

 

13,300

 

 

 

 

 

 

 

 

18-Oct-05

 

1.10

 

17,500

 

 

 

 

 

 

 

 

17-Oct-05

 

1.00

 

14,700

 

 

 

 

 

 

 

 

14-Oct-05

 

1.09

 

600

 

 

 

 

 

 

 

 

13-Oct-05

 

1.09

 

2,600

 

 

 

 

 

 

 

 

12-Oct-05

 

1.10

 

2,200

 

 

 

 

 

 

 

 

11-Oct-05

 

1.12

 

16,300

 

 

 

 

 

 

 

 

10-Oct-05

 

1.08

 

400

 

 

 

 

 

 

 

 

 

 

 

7-Oct-05

 

1.08

 

100

 

 

 

 

 

 

 

 

6-Oct-05

 

1.08

 

2,100

 

 

 

 

 

 

 

 

5-Oct-05

 

1.08

 

3,000

 

 

 

 

 

 

 

 

4-Oct-05

 

1.08

 

300

 

 

 

 

 

 

 

 

3-Oct-05

 

1.14

 

-

 

 

 

 

 

 

 

 

30-Sep-05

 

1.14

 

4,600

 

 

 

 

 

 

 

 

29-Sep-05

 

1.10

 

7,000

 

 

 

 

 

 

 

 

28-Sep-05

 

1.23

 

600

 

 

 

 

 

 

 

 

27-Sep-05

 

1.20

 

4,500

 

 

 

 

 

 

 

 

26-Sep-05

 

1.10

 

3,100

 

 

 

 

 

 

 

 

23-Sep-05

 

1.08

 

1,500

 

 

 

 

 

 

 

 

22-Sep-05

 

1.10

 

2,700

 

 

 

 

 

 

 

 

21-Sep-05

 

1.08

 

15,300

 

 

 

 

 

 

 

 

20-Sep-05

 

1.39

 

32,400

 

 

 

 

 

 

 

 

19-Sep-05

 

1.20

 

9,600

 

 

 

 

 

 

 

 

16-Sep-05

 

1.25

 

300

 

 

 

 

 

 

 

 

15-Sep-05

 

1.10

 

-

 

 

 

 

 

 

 

 

14-Sep-05

 

1.10

 

1,500

 

 

 

 

 

 

 

 

13-Sep-05

 

1.08

 

600

 

 

 

 

 

 

 

 

12-Sep-05

 

1.10

 

28,100

 

 

 

 

 

 

 

 

9-Sep-05

 

1.10

 

7,800

 

 

 

 

 

 

 

 

8-Sep-05

 

1.10

 

20,500

 

 

 

 

 

 

 

 

7-Sep-05

 

1.10

 

200

 

 

 

 

 

 

 

 

6-Sep-05

 

1.02

 

15,800

 

 

 

 

 

 

 

 

2-Sep-05

 

1.09

 

200

 

 

 

 

 

 

 

 

1-Sep-05

 

1.09

 

5,700

 

 

 

 

 

 

 

 

31-Aug-05

 

1.20

 

1,900

 

 

 

 

 

 

 

 

30-Aug-05

 

1.08

 

200

 

 

 

 

 

 

 

 

29-Aug-05

 

1.10

 

1,800

 

 

 

 

 

 

 

 

26-Aug-05

 

1.20

 

5,000

 

 

 

 

 

 

 

 

25-Aug-05

 

1.10

 

2,200

 

 

 

 

 

 

 

 

24-Aug-05

 

1.08

 

100

 

 

 

 

 

 

 

 

23-Aug-05

 

1.08

 

1,100

 

 

 

 

 

 

 

 

22-Aug-05

 

0.95

 

8,900

 

 

 

 

 

 

 

 

19-Aug-05

 

1.25

 

2,600

 

 

 

 

 

 

 

 

18-Aug-05

 

1.05

 

1,700

 

 

 

 

 

 

 

 

17-Aug-05

 

1.30

 

3,900

 

 

 

 

 

 

 

 

16-Aug-05

 

1.12

 

1,700

 

 

 

 

 

 

 

 

15-Aug-05

 

1.20

 

8,100

 

 

 

 

 

 

 

 

 

 

 

12-Aug-05

 

1.05

 

12,500

 

 

 

 

 

 

 

 

11-Aug-05

 

1.00

 

16,300

 

 

 

 

 

 

 

 

10-Aug-05

 

1.10

 

-

 

 

 

 

 

 

 

 

9-Aug-05

 

1.10

 

-

 

 

 

 

 

 

 

 

8-Aug-05

 

1.10

 

16,700

 

 

 

 

 

 

 

 

5-Aug-05

 

1.55

 

2,900

 

 

 

 

 

 

 

 

4-Aug-05

 

1.49

 

500

 

 

 

 

 

 

 

 

3-Aug-05

 

1.53

 

2,100

 

 

 

 

 

 

 

 

2-Aug-05

 

1.42

 

20,300

 

 

 

 

 

 

 

 

1-Aug-05

 

1.45

 

9,100

 

 

 

 

 

 

 

 

29-Jul-05

 

1.46

 

6,800

 

 

 

 

 

 

 

 

28-Jul-05

 

1.15

 

4,300

 

 

 

 

 

 

 

 

27-Jul-05

 

1.20

 

4,600

 

 

 

 

 

 

 

 

26-Jul-05

 

1.10

 

1,600

 

 

 

 

 

 

 

 

25-Jul-05

 

0.97

 

400

 

 

 

 

 

 

 

 

22-Jul-05

 

0.96

 

10,000

 

 

 

 

 

 

 

 

21-Jul-05

 

1.30

 

25,900

 

 

 

 

 

 

 

 

20-Jul-05

 

1.00

 

6,200

 

 

 

 

 

 

 

 

19-Jul-05

 

1.00

 

2,500

 

 

 

 

 

 

 

 

18-Jul-05

 

0.97

 

2,700

 

 

 

 

 

 

 

 

15-Jul-05

 

0.97

 

10,200

 

 

 

 

 

 

 

 

14-Jul-05

 

1.00

 

200

 

 

 

 

 

 

 

 

13-Jul-05

 

0.95

 

20,100

 

 

 

 

 

 

 

 

12-Jul-05

 

0.97

 

5,700

 

 

 

 

 

 

 

 

11-Jul-05

 

0.97

 

400

 

 

 

 

 

 

 

 

8-Jul-05

 

0.95

 

23,300

 

 

 

 

 

 

 

 

7-Jul-05

 

0.90

 

-

 

 

 

 

 

 

 

 

6-Jul-05

 

0.90

 

1,500

 

 

 

 

 

 

 

 

5-Jul-05

 

0.95

 

1,400

 

 

 

 

 

 

 

 

1-Jul-05

 

0.88

 

35,300

 

 

 

 

 

 

 

 

30-Jun-05

 

0.88

 

13,100

 

 

 

 

 

 

 

 

29-Jun-05

 

0.88

 

1,400

 

 

 

 

 

 

 

 

28-Jun-05

 

0.90

 

2,700

 

 

 

 

 

 

 

 

27-Jun-05

 

0.93

 

20,500

 

 

 

 

 

 

 

 

24-Jun-05

 

0.88

 

9,300

 

 

 

 

 

 

 

 

23-Jun-05

 

0.90

 

3,800

 

 

 

 

 

 

 

 

22-Jun-05

 

1.00

 

-

 

 

 

 

 

 

 

 

21-Jun-05

 

1.00

 

1,100

 

 

 

 

 

 

 

 

20-Jun-05

 

1.00

 

1,000

 

 

 

 

 

 

 

 

 

 

 

17-Jun-05

 

0.85

 

400

 

 

 

 

 

 

 

 

16-Jun-05

 

0.85

 

3,000

 

 

 

 

 

 

 

 

15-Jun-05

 

1.00

 

-

 

 

 

 

 

 

 

 

14-Jun-05

 

1.00

 

22,200

 

 

 

 

 

 

 

 

13-Jun-05

 

0.99

 

5,500

 

 

 

 

 

 

 

 

10-Jun-05

 

0.97

 

900

 

 

 

 

 

 

 

 

9-Jun-05

 

0.95

 

9,700

 

 

 

 

 

 

 

 

8-Jun-05

 

0.85

 

15,600

 

 

 

 

 

 

 

 

7-Jun-05

 

1.00

 

11,500

 

 

 

 

 

 

 

 

6-Jun-05

 

0.96

 

8,700

 

 

 

 

 

 

 

 

3-Jun-05

 

0.90

 

3,700

 

 

 

 

 

 

 

 

2-Jun-05

 

0.90

 

2,600

 

 

 

 

 

 

 

 

1-Jun-05

 

0.90

 

23,700

 

 

 

 

 

 

 

 

31-May-05

 

0.85

 

6,800

 

 

 

 

 

 

 

 

27-May-05

 

0.85

 

3,300

 

 

 

 

 

 

 

 

26-May-05

 

0.85

 

800

 

 

 

 

 

 

 

 

25-May-05

 

0.85

 

200

 

 

 

 

 

 

 

 

24-May-05

 

0.90

 

17,900

 

 

 

 

 

 

 

 

23-May-05

 

0.80

 

5,200

 

 

 

 

 

 

 

 

20-May-05

 

0.77

 

7,200

 

 

 

 

 

 

 

 

19-May-05

 

0.75

 

1,900

 

 

 

 

 

 

 

 

18-May-05

 

0.75

 

7,100

 

 

 

 

 

 

 

 

17-May-05

 

0.75

 

500

 

 

 

 

 

 

 

 

16-May-05

 

0.75

 

8,300

 

 

 

 

 

 

 

 

13-May-05

 

0.75

 

5,000

 

 

 

 

 

 

 

 

12-May-05

 

0.70

 

12,200

 

 

 

 

 

 

 

 

11-May-05

 

0.75

 

200

 

 

 

 

 

 

 

 

10-May-05

 

0.75

 

1,900

 

 

 

 

 

 

 

 

9-May-05

 

0.75

 

5,000

 

 

 

 

 

 

 

 

6-May-05

 

0.75

 

-

 

 

 

 

 

 

 

 

5-May-05

 

0.75

 

3,200

 

 

 

 

 

 

 

 

4-May-05

 

0.75

 

1,000

 

 

 

 

 

 

 

 

3-May-05

 

0.75

 

-

 

 

 

 

 

 

 

 

2-May-05

 

0.75

 

9,800

 

 

 

 

 

 

 

 

29-Apr-05

 

0.85

 

11,600

 

 

 

 

 

 

 

 

28-Apr-05

 

0.75

 

-

 

 

 

 

 

 

 

 

27-Apr-05

 

0.75

 

62,600

 

 

 

 

 

 

 

 

26-Apr-05

 

0.78

 

5,300

 

 

 

 

 

 

 

 

25-Apr-05

 

0.75

 

11,500

 

 

 

 

 

 

 

 

 

 

 

22-Apr-05

 

0.85

 

17,100

 

 

 

 

 

 

 

 

21-Apr-05

 

0.82

 

19,300

 

 

 

 

 

 

 

 

20-Apr-05

 

0.82

 

400

 

 

 

 

 

 

 

 

19-Apr-05

 

0.82

 

12,500

 

 

 

 

 

 

 

 

18-Apr-05

 

0.82

 

1,100

 

 

 

 

 

 

 

 

15-Apr-05

 

0.82

 

1,700

 

 

 

 

 

 

 

 

14-Apr-05

 

0.70

 

13,500

 

 

 

 

 

 

 

 

13-Apr-05

 

0.85

 

18,400

 

 

 

 

 

 

 

 

12-Apr-05

 

0.82

 

800

 

 

 

 

 

 

 

 

11-Apr-05

 

0.82

 

2,600

 

 

 

 

 

 

 

 

8-Apr-05

 

0.85

 

2,500

 

 

 

 

 

 

 

 

7-Apr-05

 

0.82

 

5,000

 

 

 

 

 

 

 

 

6-Apr-05

 

0.83

 

800

 

 

 

 

 

 

 

 

5-Apr-05

 

0.86

 

13,500

 

 

 

 

 

 

 

 

4-Apr-05

 

0.83

 

30,000

 

 

 

 

 

 

 

 

1-Apr-05

 

0.88

 

6,800

 

 

 

 

 

 

 

 

31-Mar-05

 

0.85

 

3,700

 

 

 

 

 

 

 

 

30-Mar-05

 

0.69

 

63,900

 

 

 

 

 

 

 

 

29-Mar-05

 

0.72

 

900

 

 

 

 

 

 

 

 

28-Mar-05

 

0.75

 

67,500

 

 

 

 

 

 

 

 

24-Mar-05

 

0.75

 

1,000

 

 

 

 

 

 

 

 

23-Mar-05

 

0.75

 

2,100

 

 

 

 

 

 

 

 

22-Mar-05

 

0.88

 

12,700

 

 

 

 

 

 

 

 

21-Mar-05

 

0.85

 

79,800

 

 

 

 

 

 

 

 

18-Mar-05

 

0.85

 

15,500

 

 

 

 

 

 

 

 

17-Mar-05

 

0.88

 

6,800

 

 

 

 

 

 

 

 

16-Mar-05

 

0.88

 

16,300

 

 

 

 

 

 

 

 

15-Mar-05

 

0.88

 

7,100

 

 

 

 

 

 

 

 

14-Mar-05

 

0.88

 

52,000

 

 

 

 

 

 

 

 

11-Mar-05

 

0.70

 

4,000

 

 

 

 

 

 

 

 

10-Mar-05

 

0.89

 

10,100

 

 

 

 

 

 

 

 

9-Mar-05

 

0.89

 

12,200

 

 

 

 

 

 

 

 

8-Mar-05

 

0.70

 

11,300

 

 

 

 

 

 

 

 

7-Mar-05

 

0.70

 

38,800

 

 

 

 

 

 

 

 

4-Mar-05

 

0.85

 

-

 

 

 

 

 

 

 

 

3-Mar-05

 

0.85

 

4,800

 

 

 

 

 

 

 

 

2-Mar-05

 

0.85

 

1,000

 

 

 

 

 

 

 

 

1-Mar-05

 

0.99

 

7,500

 

 

 

 

 

 

 

 

28-Feb-05

 

0.95

 

7,600

 

 

 

 

 

 

 

 

 

 

 

25-Feb-05

 

0.70

 

22,300

 

 

 

 

 

 

 

 

24-Feb-05

 

0.85

 

11,300

 

 

 

 

 

 

 

 

23-Feb-05

 

0.90

 

26,300

 

 

 

 

 

 

 

 

22-Feb-05

 

0.75

 

4,300

 

 

 

 

 

 

 

 

18-Feb-05

 

0.85

 

28,300

 

 

 

 

 

 

 

 

17-Feb-05

 

0.80

 

21,500

 

 

 

 

 

 

 

 

16-Feb-05

 

0.80

 

18,800

 

 

 

 

 

 

 

 

15-Feb-05

 

1.00

 

2,400

 

 

 

 

 

 

 

 

14-Feb-05

 

0.85

 

3,600

 

 

 

 

 

 

 

 

11-Feb-05

 

0.99

 

13,800

 

 

 

 

 

 

 

 

10-Feb-05

 

1.00

 

9,300

 

 

 

 

 

 

 

 

9-Feb-05

 

1.10

 

17,400

 

 

 

 

 

 

 

 

8-Feb-05

 

1.15

 

5,100

 

 

 

 

 

 

 

 

7-Feb-05

 

1.00

 

13,500

 

 

 

 

 

 

 

 

4-Feb-05

 

1.20

 

4,000

 

 

 

 

 

 

 

 

3-Feb-05

 

1.25

 

9,300

 

 

 

 

 

 

 

 

2-Feb-05

 

1.20

 

7,400

 

 

 

 

 

 

 

 

1-Feb-05

 

1.44

 

6,400

 

 

 

 

 

 

 

 

31-Jan-05

 

1.44

 

6,400

 

 

 

 

 

 

 

 

28-Jan-05

 

1.44

 

6,400

 

 

 

 

 

 

 

 

27-Jan-05

 

1.44

 

6,400

 

 

 

 

 

 

 

 

26-Jan-05

 

1.44

 

-

 

 

 

 

 

 

 

 

25-Jan-05

 

1.44

 

-

 

 

 

 

 

 

 

 

24-Jan-05

 

1.44

 

-

 

 

 

 

 

 

 

 

21-Jan-05

 

1.44

 

-

 

 

 

 

 

 

 

 

20-Jan-05

 

1.44

 

-

 

 

 

 

 

 

 

 

19-Jan-05

 

1.44

 

-

 

 

 

 

 

 

 

 

18-Jan-05

 

1.44

 

-

 

 

 

 

 

 

 

 

14-Jan-05

 

1.44

 

-

 

 

 

 

 

 

 

 

13-Jan-05

 

1.44

 

-

 

 

 

 

 

 

 

 

12-Jan-05

 

1.44

 

-

 

 

 

 

 

 

 

 

11-Jan-05

 

1.44

 

-

 

 

 

 

 

 

 

 

10-Jan-05

 

1.44

 

-

 

 

 

 

 

 

 

 

7-Jan-05

 

1.44

 

-

 

 

 

 

 

 

 

 

6-Jan-05

 

1.44

 

-

 

 

 

 

 

 

 

 

5-Jan-05

 

1.44

 

-

 

 

 

 

 

 

 

 

4-Jan-05

 

1.44

 

-

 

 

 

 

 

 

 

 

3-Jan-05

 

1.44

 

-

 

 

 

 

 

 

 

 

31-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

 

 

 

30-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

29-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

28-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

27-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

23-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

22-Dec-04

 

1.44

 

-

-

Trading Halted

 

 

 

 

21-Dec-04

 

1.44

 

-

 

 

 

 

 

20-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

17-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

16-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

15-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

14-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

13-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

10-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

9-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

8-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

7-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

6-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

3-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

2-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

1-Dec-04

 

1.44

 

-

 

 

 

 

 

 

 

 

30-Nov-04

 

1.44

 

-

 

 

 

 

 

 

 

 

29-Nov-04

 

1.44

 

-

 

 

 

 

 

 

 

 

26-Nov-04

 

1.44

 

-

 

 

 

 

 

 

 

 

24-Nov-04

 

1.44

 

-

 

 

 

 

 

 

 

 

23-Nov-04

 

1.44

 

-

 

 

 

 

 

 

 

 

22-Nov-04

 

1.44

 

-

 

 

 

 

 

 

 

 

19-Nov-04

 

1.44

 

-

 

 

 

 

 

 

 

 

18-Nov-04

 

1.44

 

-

 

 

 

 

 

 

 

 

17-Nov-04

 

1.44

 

-

 

 

 

 

 

 

 

 

16-Nov-04

 

1.44

 

6,400

 

 

 

 

 

 

 

 

15-Nov-04

 

1.45

 

25,500

 

 

 

 

 

 

 

 

12-Nov-04

 

1.40

 

2,900

 

 

 

 

 

 

 

 

11-Nov-04

 

1.35

 

3,600

 

 

 

 

 

 

 

 

10-Nov-04

 

1.35

 

7,900

 

 

 

 

 

 

 

 

9-Nov-04

 

1.45

 

20,400

 

 

 

 

 

 

 

 

8-Nov-04

 

1.53

 

56,100

 

 

 

 

 

 

 

 

5-Nov-04

 

1.50

 

15,200

 

 

 

 

 

 

 

 

4-Nov-04

 

1.50

 

6,600

 

 

 

 

 

 

 

 

 

 

 

3-Nov-04

 

1.54

 

10,200

 

 

 

 

 

 

 

 

2-Nov-04

 

1.56

 

11,100

 

 

 

 

 

 

 

 

1-Nov-04

 

1.57

 

7,900

 

 

 

 

 

 

 

 

29-Oct-04

 

1.57

 

16,600

 

 

 

 

 

 

 

 

28-Oct-04

 

1.46

 

7,200

 

 

 

 

 

 

 

 

27-Oct-04

 

1.48

 

1,100

 

 

 

 

 

 

 

 

26-Oct-04

 

1.51

 

24,300

 

 

 

 

 

 

 

 

25-Oct-04

 

1.59

 

21,400

 

 

 

 

 

 

 

 

22-Oct-04

 

1.45

 

11,100

 

 

 

 

 

 

 

 

21-Oct-04

 

1.45

 

11,600

 

 

 

 

 

 

 

 

20-Oct-04

 

1.39

 

12,300

 

 

 

 

 

 

 

 

19-Oct-04

 

1.38

 

29,400

 

 

 

 

 

 

 

 

18-Oct-04

 

1.26

 

7,300

 

 

 

 

 

 

 

 

15-Oct-04

 

1.30

 

17,400

 

 

 

 

 

 

 

 

14-Oct-04

 

1.32

 

3,600

 

 

 

 

 

 

 

 

13-Oct-04

 

1.35

 

24,400

 

 

 

 

 

 

 

 

12-Oct-04

 

1.32

 

1,100

 

 

 

 

 

 

 

 

11-Oct-04

 

1.41

 

1,400

 

 

 

 

 

 

 

 

8-Oct-04

 

1.36

 

8,600

 

 

 

 

 

 

 

 

7-Oct-04

 

1.40

 

11,200

 

 

 

 

 

 

 

 

6-Oct-04

 

1.40

 

28,700

 

 

 

 

 

 

 

 

5-Oct-04

 

1.40

 

5,300

 

 

 

 

 

 

 

 

4-Oct-04

 

1.40

 

4,400

 

 

 

 

 

 

 

 

1-Oct-04

 

1.43

 

11,200

 

 

 

 

 

 

 

 

30-Sep-04

 

1.40

 

7,900

 

 

 

 

 

 

 

 

29-Sep-04

 

1.40

 

3,500

 

 

 

 

 

 

 

 

28-Sep-04

 

1.40

 

2,100

 

 

 

 

 

 

 

 

27-Sep-04

 

1.49

 

8,800

 

 

 

 

 

 

 

 

24-Sep-04

 

1.54

 

7,500

 

 

 

 

 

 

 

 

23-Sep-04

 

1.40

 

76,000

1:10 Stock Split

 

 

 

 

22-Sep-04

 

1.40

 

10,500

 

 

 

 

 

 

 

 

21-Sep-04

 

1.60

 

32,800

 

 

 

 

 

 

 

 

20-Sep-04

 

1.80

 

7,000

 

 

 

 

 

 

 

 

17-Sep-04

 

1.60

 

5,900

 

 

 

 

 

 

 

 

16-Sep-04

 

1.80

 

9,200

 

 

 

 

 

 

 

 

15-Sep-04

 

1.70

 

1,700

 

 

 

 

 

 

 

 

14-Sep-04

 

1.60

 

6,400

 

 

 

 

 

 

 

 

13-Sep-04

 

1.60

 

5,600

 

 

 

 

 

 

 

 

10-Sep-04

 

1.60

 

11,200

 

 

 

 

 

 

 

 

 

 

 

9-Sep-04

 

1.60

 

3,400

 

 

 

 

 

 

 

 

8-Sep-04

 

1.60

 

10,400

 

 

 

 

 

 

 

 

7-Sep-04

 

1.60

 

2,700

 

 

 

 

 

 

 

 

3-Sep-04

 

1.40

 

1,300

 

 

 

 

 

 

 

 

2-Sep-04

 

1.60

 

1,400

 

 

 

 

 

 

 

 

1-Sep-04

 

1.60

 

6,400

 

 

 

 

 

 

 

 

31-Aug-04

 

1.40

 

200

 

 

 

 

 

 

 

 

30-Aug-04

 

1.40

 

2,500

 

 

 

 

 

 

 

 

27-Aug-04

 

1.40

 

2,400

 

 

 

 

 

 

 

 

26-Aug-04

 

1.50

 

5,700

 

 

 

 

 

 

 

 

25-Aug-04

 

1.50

 

11,300

 

 

 

 

 

 

 

 

24-Aug-04

 

1.50

 

12,000

 

 

 

 

 

 

 

 

23-Aug-04

 

1.40

 

4,900

 

 

 

 

 

 

 

 

20-Aug-04

 

1.50

 

1,300

 

 

 

 

 

 

 

 

19-Aug-04

 

1.60

 

1,700

 

 

 

 

 

 

 

 

18-Aug-04

 

1.60

 

2,200

 

 

 

 

 

 

 

 

17-Aug-04

 

1.60

 

2,200

 

 

 

 

 

 

 

 

16-Aug-04

 

1.40

 

1,400

 

 

 

 

 

 

 

 

13-Aug-04

 

1.40

 

7,600

 

 

 

 

 

 

 

 

12-Aug-04

 

1.50

 

71,200

 

 

 

 

 

 

 

 

11-Aug-04

 

1.30

 

10,600

 

 

 

 

 

 

 

 

10-Aug-04

 

1.40

 

17,100

 

 

 

 

 

 

 

 

9-Aug-04

 

1.40

 

12,600

 

 

 

 

 

 

 

 

6-Aug-04

 

1.40

 

8,300

 

 

 

 

 

 

 

 

5-Aug-04

 

1.30

 

24,200

 

 

 

 

 

 

 

 

4-Aug-04

 

1.20

 

23,500

 

 

 

 

 

 

 

 

3-Aug-04

 

1.40

 

12,700

 

 

 

 

 

 

 

 

2-Aug-04

 

1.40

 

11,000

 

 

 

 

 

 

 

 

30-Jul-04

 

1.40

 

6,100

 

 

 

 

 

 

 

 

29-Jul-04

 

1.40

 

3,800

 

 

 

 

 

 

 

 

28-Jul-04

 

1.40

 

10,400

 

 

 

 

 

 

 

 

27-Jul-04

 

1.40

 

6,400

 

 

 

 

 

 

 

 

26-Jul-04

 

1.50

 

10,600

 

 

 

 

 

 

 

 

23-Jul-04

 

1.60

 

26,300

 

 

 

 

 

 

 

 

22-Jul-04

 

1.60

 

3,200

 

 

 

 

 

 

 

 

21-Jul-04

 

1.60

 

18,300

 

 

 

 

 

 

 

 

20-Jul-04

 

1.50

 

12,700

 

 

 

 

 

 

 

 

19-Jul-04

 

1.50

 

2,200

 

 

 

 

 

 

 

 

16-Jul-04

 

1.50

 

24,300

 

 

 

 

 

 

 

 

 

 

 

15-Jul-04

 

1.50

 

9,000

 

 

 

 

 

 

 

 

14-Jul-04

 

1.60

 

6,700

 

 

 

 

 

 

 

 

13-Jul-04

 

1.50

 

10,000

 

 

 

 

 

 

 

 

12-Jul-04

 

1.60

 

9,700

 

 

 

 

 

 

 

 

9-Jul-04

 

1.50

 

27,900

 

 

 

 

 

 

 

 

8-Jul-04

 

1.30

 

25,400

 

 

 

 

 

 

 

 

7-Jul-04

 

1.30

 

2,200

 

 

 

 

 

 

 

 

6-Jul-04

 

1.30

 

12,300

 

 

 

 

 

 

 

 

2-Jul-04

 

1.30

 

3,500

 

 

 

 

 

 

 

 

1-Jul-04

 

1.30

 

17,500

 

 

 

 

 

 

 

 

30-Jun-04

 

1.40

 

21,300

 

 

 

 

 

 

 

 

29-Jun-04

 

1.40

 

12,400

 

 

 

 

 

 

 

 

28-Jun-04

 

1.40

 

4,700

 

 

 

 

 

 

 

 

25-Jun-04

 

1.40

 

6,700

 

 

 

 

 

 

 

 

24-Jun-04

 

1.40

 

5,900

 

 

 

 

 

 

 

 

23-Jun-04

 

1.30

 

96,100

 

 

 

 

 

 

 

 

22-Jun-04

 

1.50

 

4,000

 

 

 

 

 

 

 

 

21-Jun-04

 

1.60

 

5,700

 

 

 

 

 

 

 

 

18-Jun-04

 

1.40

 

23,200

 

 

 

 

 

 

 

 

17-Jun-04

 

1.40

 

24,900

 

 

 

 

 

 

 

 

16-Jun-04

 

1.50

 

66,100

 

 

 

 

 

 

 

 

15-Jun-04

 

1.50

 

136,400

 

 

 

 

 

 

 

 

14-Jun-04

 

1.70

 

4,600

 

 

 

 

 

 

 

 

10-Jun-04

 

1.70

 

4,700

 

 

 

 

 

 

 

 

9-Jun-04

 

1.70

 

3,000

 

 

 

 

 

 

 

 

8-Jun-04

 

1.70

 

27,300

 

 

 

 

 

 

 

 

7-Jun-04

 

1.80

 

66,900

 

 

 

 

 

 

 

 

4-Jun-04

 

1.70

 

16,200

 

 

 

 

 

 

 

 

3-Jun-04

 

1.60

 

35,800

 

 

 

 

 

 

 

 

2-Jun-04

 

1.80

 

79,100

 

 

 

 

 

 

 

 

1-Jun-04

 

1.80

 

27,300

 

 

 

 

 

 

 

 

28-May-04

 

1.80

 

4,800

 

 

 

 

 

 

 

 

27-May-04

 

1.80

 

17,400

 

 

 

 

 

 

 

 

26-May-04

 

1.90

 

19,400

 

 

 

 

 

 

 

 

25-May-04

 

1.90

 

3,300

 

 

 

 

 

 

 

 

24-May-04

 

2.00

 

300

 

 

 

 

 

 

 

 

21-May-04

 

2.00

 

3,900

 

 

 

 

 

 

 

 

20-May-04

 

1.90

 

26,600

 

 

 

 

 

 

 

 

19-May-04

 

1.80

 

21,400

 

 

 

 

 

 

 

 

 

 

 

18-May-04

 

1.70

 

67,600

 

 

 

 

 

 

 

 

17-May-04

 

1.90

 

12,500

 

 

 

 

 

 

 

 

14-May-04

 

1.90

 

3,100

 

 

 

 

 

 

 

 

13-May-04

 

1.90

 

9,700

 

 

 

 

 

 

 

 

12-May-04

 

1.90

 

5,200

 

 

 

 

 

 

 

 

11-May-04

 

2.00

 

13,500

 

 

 

 

 

 

 

 

10-May-04

 

2.00

 

1,300

 

 

 

 

 

 

 

 

7-May-04

 

2.00

 

9,000

 

 

 

 

 

 

 

 

6-May-04

 

2.00

 

11,700

 

 

 

 

 

 

 

 

5-May-04

 

2.00

 

37,400

 

 

 

 

 

 

 

 

4-May-04

 

2.00

 

13,100

 

 

 

 

 

 

 

 

3-May-04

 

2.00

 

3,000

 

 

 

 

 

 

 

 

30-Apr-04

 

2.00

 

6,600

 

 

 

 

 

 

 

 

29-Apr-04

 

2.00

 

4,500

 

 

 

 

 

 

 

 

28-Apr-04

 

1.90

 

8,800

 

 

 

 

 

 

 

 

27-Apr-04

 

2.00

 

12,400

 

 

 

 

 

 

 

 

26-Apr-04

 

2.00

 

28,500

 

 

 

 

 

 

 

 

23-Apr-04

 

2.00

 

53,700

 

 

 

 

 

 

 

 

22-Apr-04

 

2.10

 

8,200

 

 

 

 

 

 

 

 

21-Apr-04

 

2.00

 

7,600

 

 

 

 

 

 

 

 

20-Apr-04

 

2.10

 

21,500

 

 

 

 

 

 

 

 

19-Apr-04

 

2.10

 

4,600

 

 

 

 

 

 

 

 

16-Apr-04

 

2.10

 

88,600

 

 

 

 

 

 

 

 

15-Apr-04

 

2.00

 

44,300

 

 

 

 

 

 

 

 

14-Apr-04

 

2.10

 

67,300

 

 

 

 

 

 

 

 

13-Apr-04

 

2.40

 

37,900

 

 

 

 

 

 

 

 

12-Apr-04

 

2.40

 

68,200

 

 

 

 

 

 

 

 

8-Apr-04

 

2.40

 

17,300

 

 

 

 

 

 

 

 

7-Apr-04

 

2.40

 

8,900

 

 

 

 

 

 

 

 

6-Apr-04

 

2.50

 

10,900

 

 

 

 

 

 

 

 

5-Apr-04

 

2.50

 

7,100

 

 

 

 

 

 

 

 

2-Apr-04

 

2.50

 

13,300

 

 

 

 

 

 

 

 

1-Apr-04

 

2.40

 

17,600

 

 

 

 

 

 

 

 

31-Mar-04

 

2.50

 

5,800

 

 

 

 

 

 

 

 

30-Mar-04

 

2.50

 

17,300

 

 

 

 

 

 

 

 

29-Mar-04

 

2.30

 

27,600

 

 

 

 

 

 

 

 

26-Mar-04

 

2.60

 

14,000

 

 

 

 

 

 

 

 

25-Mar-04

 

2.60

 

23,800

 

 

 

 

 

 

 

 

24-Mar-04

 

2.70

 

18,500

 

 

 

 

 

 

 

 

 

 

 

23-Mar-04

 

2.60

 

8,900

 

 

 

 

 

 

 

 

22-Mar-04

 

2.60

 

9,800

 

 

 

 

 

 

 

 

19-Mar-04

 

2.60

 

18,300

 

 

 

 

 

 

 

 

18-Mar-04

 

2.50

 

13,600

 

 

 

 

 

 

 

 

17-Mar-04

 

2.70

 

17,500

 

 

 

 

 

 

 

 

16-Mar-04

 

2.70

 

16,900

 

 

 

 

 

 

 

 

15-Mar-04

 

2.60

 

3,400

 

 

 

 

 

 

 

 

12-Mar-04

 

2.70

 

5,100

 

 

 

 

 

 

 

 

11-Mar-04

 

2.60

 

19,000

 

 

 

 

 

 

 

 

10-Mar-04

 

2.70

 

21,600

 

 

 

 

 

 

 

 

9-Mar-04

 

2.80

 

90,900

 

 

 

 

 

 

 

 

8-Mar-04

 

2.70

 

8,900

 

 

 

 

 

 

 

 

5-Mar-04

 

2.80

 

4,700

 

 

 

 

 

 

 

 

4-Mar-04

 

2.80

 

40,700

 

 

 

 

 

 

 

 

3-Mar-04

 

2.70

 

12,200

 

 

 

 

 

 

 

 

2-Mar-04

 

2.70

 

16,000

 

 

 

 

 

 

 

 

1-Mar-04

 

2.60

 

19,800

 

 

 

 

 

 

 

 

27-Feb-04

 

2.60

 

11,900

 

 

 

 

 

 

 

 

26-Feb-04

 

2.70

 

23,700

 

 

 

 

 

 

 

 

25-Feb-04

 

2.50

 

12,700

 

 

 

 

 

 

 

 

24-Feb-04

 

2.60

 

21,500

 

 

 

 

 

 

 

 

23-Feb-04

 

2.70

 

14,500

 

 

 

 

 

 

 

 

20-Feb-04

 

2.70

 

16,900

 

 

 

 

 

 

 

 

19-Feb-04

 

2.70

 

28,200

 

 

 

 

 

 

 

 

18-Feb-04

 

2.50

 

43,500

 

 

 

 

 

 

 

 

17-Feb-04

 

2.60

 

75,400

 

 

 

 

 

 

 

 

13-Feb-04

 

2.70

 

12,700

 

 

 

 

 

 

 

 

12-Feb-04

 

2.70

 

15,600

 

 

 

 

 

 

 

 

11-Feb-04

 

2.80

 

100,300

 

 

 

 

 

 

 

 

10-Feb-04

 

2.70

 

27,300

 

 

 

 

 

 

 

 

9-Feb-04

 

2.70

 

53,200

 

 

 

 

 

 

 

 

6-Feb-04

 

2.80

 

30,900

 

 

 

 

 

 

 

 

5-Feb-04

 

2.70

 

113,600

 

 

 

 

 

 

 

 

4-Feb-04

 

2.80

 

19,500

 

 

 

 

 

 

 

 

3-Feb-04

 

2.80

 

45,300

 

 

 

 

 

 

 

 

2-Feb-04

 

2.70

 

73,900

 

 

 

 

 

 

 

 

30-Jan-04

 

2.80

 

80,400

 

 

 

 

 

 

 

 

29-Jan-04

 

2.90

 

84,200

 

 

 

 

 

 

 

 

28-Jan-04

 

3.00

 

211,700

 

 

 

 

 

 

 

 

 

 

 

27-Jan-04

 

2.90

 

670,300

 

 

 

 

 

 

 

 

26-Jan-04

 

2.70

 

286,100

 

 

 

 

 

 

 

 

23-Jan-04

 

2.70

 

122,300

 

 

 

 

 

 

 

 

22-Jan-04

 

2.50

 

161,200

 

 

 

 

 

 

 

 

21-Jan-04

 

2.30

 

91,300

 

 

 

 

 

 

 

 

20-Jan-04

 

2.40

 

198,600

 

 

 

 

 

 

 

 

16-Jan-04

 

2.30

 

54,300

 

 

 

 

 

 

 

 

15-Jan-04

 

2.30

 

127,500

 

 

 

 

 

 

 

 

14-Jan-04

 

2.20

 

77,100

 

 

 

 

 

 

 

 

13-Jan-04

 

2.20

 

44,800

 

 

 

 

 

 

 

 

12-Jan-04

 

2.10

 

26,100

 

 

 

 

 

 

 

 

9-Jan-04

 

2.20

 

28,500

 

 

 

 

 

 

 

 

8-Jan-04

 

2.10

 

14,500

 

 

 

 

 

 

 

 

7-Jan-04

 

2.10

 

16,700

 

 

 

 

 

 

 

 

6-Jan-04

 

2.10

 

15,500

 

 

 

 

 

 

 

 

5-Jan-04

 

2.00

 

21,400

 

 

 

 

 

 

 

 

2-Jan-04

 

2.20

 

12,700

 

 

 

 

 

 

 

 

31-Dec-03

 

2.20

 

40,800

 

 

 

 

 

 

 

 

30-Dec-03

 

2.10

 

109,000

 

 

 

 

 

 

 

 

29-Dec-03

 

2.10

 

80,500

 

 

 

 

 

 

 

 

26-Dec-03

 

2.20

 

47,600

 

 

 

 

 

 

 

 

24-Dec-03

 

2.20

 

13,400

 

 

 

 

 

 

 

 

23-Dec-03

 

2.20

 

29,600

 

 

 

 

 

 

 

 

22-Dec-03

 

2.30

 

99,900

 

 

 

 

 

 

 

 

19-Dec-03

 

2.20

 

183,400

 

 

 

 

 

 

 

 

18-Dec-03

 

2.20

 

118,600

 

 

 

 

 

 

 

 

17-Dec-03

 

2.10

 

237,700

 

 

 

 

 

 

 

 

16-Dec-03

 

2.30

 

536,400

 

 

 

 

 

 

 

 

15-Dec-03

 

2.00

 

328,000

 

 

 

 

 

 

 

 

12-Dec-03

 

2.10

 

106,800

 

 

 

 

 

 

 

 

11-Dec-03

 

2.10

 

26,300

 

 

 

 

 

 

 

 

10-Dec-03

 

2.10

 

18,600

 

 

 

 

 

 

 

 

9-Dec-03

 

2.20

 

33,500

 

 

 

 

 

 

 

 

8-Dec-03

 

2.20

 

75,400

 

 

 

 

 

 

 

 

5-Dec-03

 

2.00

 

114,500

 

 

 

 

 

 

 

 

4-Dec-03

 

2.30

 

37,000

 

 

 

 

 

 

 

 

3-Dec-03

 

2.30

 

61,000

 

 

 

 

 

 

 

 

2-Dec-03

 

2.40

 

94,900

 

 

 

 

 

 

 

 

1-Dec-03

 

2.40

 

230,500

 

 

 

 

 

 

 

 

 

 

 

28-Nov-03

 

2.40

 

464,300

 

 

 

 

 

 

 

 

26-Nov-03

 

2.00

 

241,000

 

 

 

 

 

 

 

 

25-Nov-03

 

2.00

 

49,200

 

 

 

 

 

 

 

 

24-Nov-03

 

2.10

 

40,000

 

 

 

 

 

 

 

 

21-Nov-03

 

2.10

 

43,700

 

 

 

 

 

 

 

 

20-Nov-03

 

2.10

 

28,300

 

 

 

 

 

 

 

 

19-Nov-03

 

2.20

 

345,000

 

 

 

 

 

 

 

 

18-Nov-03

 

2.00

 

17,900

 

 

 

 

 

 

 

 

17-Nov-03

 

2.10

 

45,000

 

 

 

 

 

 

 

 

14-Nov-03

 

2.10

 

19,100

 

 

 

 

 

 

 

 

13-Nov-03

 

2.10

 

110,600

 

 

 

 

 

 

 

 

12-Nov-03

 

2.10

 

108,000

 

 

 

 

 

 

 

 

11-Nov-03

 

2.00

 

80,300

 

 

 

 

 

 

 

 

10-Nov-03

 

2.20

 

486,500

 

 

 

 

 

 

 

 

7-Nov-03

 

2.30

 

81,800

 

 

 

 

 

 

 

 

6-Nov-03

 

2.40

 

187,800

 

 

 

 

 

 

 

 

5-Nov-03

 

2.40

 

15,300

 

 

 

 

 

 

 

 

4-Nov-03

 

2.40

 

91,300

 

 

 

 

 

 

 

 

3-Nov-03

 

2.60

 

5,700

 

 

 

 

 

 

 

 

31-Oct-03

 

2.60

 

24,100

 

 

 

 

 

 

 

 

30-Oct-03

 

2.60

 

72,300

 

 

 

 

 

 

 

 

29-Oct-03

 

2.80

 

14,400

 

 

 

 

 

 

 

 

28-Oct-03

 

2.40

 

24,300

 

 

 

 

 

 

 

 

27-Oct-03

 

3.00

 

19,700

 

 

 

 

 

 

 

 

24-Oct-03

 

2.40

 

25,800

 

 

 

 

 

 

 

 

23-Oct-03

 

2.60

 

75,800

 

 

 

 

 

 

 

 

22-Oct-03

 

2.60

 

54,600

 

 

 

 

 

 

 

 

21-Oct-03

 

3.00

 

118,000

 

 

 

 

 

 

 

 

20-Oct-03

 

2.60

 

25,100

 

 

 

 

 

 

 

 

17-Oct-03

 

2.50

 

7,700

 

 

 

 

 

 

 

 

16-Oct-03

 

2.60

 

43,300

 

 

 

 

 

 

 

 

15-Oct-03

 

2.60

 

3,400

 

 

 

 

 

 

 

 

14-Oct-03

 

2.60

 

19,800

 

 

 

 

 

 

 

 

13-Oct-03

 

2.50

 

8,900

 

 

 

 

 

 

 

 

10-Oct-03

 

2.70

 

5,100

 

 

 

 

 

 

 

 

9-Oct-03

 

2.70

 

4,300

 

 

 

 

 

 

 

 

8-Oct-03

 

2.60

 

11,700

 

 

 

 

 

 

 

 

7-Oct-03

 

2.60

 

5,300

 

 

 

 

 

 

 

 

6-Oct-03

 

2.60

 

2,400

 

 

 

 

 

 

 

 

 

 

 

3-Oct-03

 

2.70

 

3,700

 

 

 

 

 

 

 

 

2-Oct-03

 

2.60

 

14,500

 

 

 

 

 

 

 

 

1-Oct-03

 

2.90

 

44,900

 

 

 

 

 

 

 

 

30-Sep-03

 

2.70

 

6,100

 

 

 

 

 

 

 

 

29-Sep-03

 

2.70

 

4,700

 

 

 

 

 

 

 

 

26-Sep-03

 

2.80

 

1,600

 

 

 

 

 

 

 

 

25-Sep-03

 

2.80

 

1,200

 

 

 

 

 

 

 

 

24-Sep-03

 

2.80

 

42,000

 

 

 

 

 

 

 

 

23-Sep-03

 

2.80

 

57,700

 

 

 

 

 

 

 

 

22-Sep-03

 

2.80

 

13,000

 

 

 

 

 

 

 

 

19-Sep-03

 

2.50

 

34,100

 

 

 

 

 

 

 

 

18-Sep-03

 

2.60

 

4,100

 

 

 

 

 

 

 

 

17-Sep-03

 

2.60

 

11,300

 

 

 

 

 

 

 

 

16-Sep-03

 

2.70

 

6,400

 

 

 

 

 

 

 

 

15-Sep-03

 

2.80

 

3,600

 

 

 

 

 

 

 

 

12-Sep-03

 

2.80

 

13,500

 

 

 

 

 

 

 

 

11-Sep-03

 

2.60

 

10,100

 

 

 

 

 

 

 

 

10-Sep-03

 

2.70

 

1,400

 

 

 

 

 

 

 

 

9-Sep-03

 

2.60

 

3,500

 

 

 

 

 

 

 

 

8-Sep-03

 

2.70

 

12,200

 

 

 

 

 

 

 

 

5-Sep-03

 

2.70

 

5,500

 

 

 

 

 

 

 

 

4-Sep-03

 

2.90

 

12,800

 

 

 

 

 

 

 

 

3-Sep-03

 

2.80

 

10,000

 

 

 

 

 

 

 

 

2-Sep-03

 

2.60

 

4,900

 

 

 

 

 

 

 

 

29-Aug-03

 

2.80

 

7,600

 

 

 

 

 

 

 

 

28-Aug-03

 

2.80

 

24,400

 

 

 

 

 

 

 

 

27-Aug-03

 

2.60

 

1,700

 

 

 

 

 

 

 

 

26-Aug-03

 

2.60

 

1,400

 

 

 

 

 

 

 

 

25-Aug-03

 

2.60

 

1,400

 

 

 

 

 

 

 

 

22-Aug-03

 

2.70

 

8,700

 

 

 

 

 

 

 

 

21-Aug-03

 

2.60

 

5,300

 

 

 

 

 

 

 

 

20-Aug-03

 

2.50

 

3,800

 

 

 

 

 

 

 

 

19-Aug-03

 

2.50

 

6,900

 

 

 

 

 

 

 

 

18-Aug-03

 

2.70

 

8,700

 

 

 

 

 

 

 

 

15-Aug-03

 

2.50

 

800

 

 

 

 

 

 

 

 

14-Aug-03

 

2.50

 

7,000

 

 

 

 

 

 

 

 

13-Aug-03

 

2.60

 

8,600

 

 

 

 

 

 

 

 

12-Aug-03

 

2.40

 

10,200

 

 

 

 

 

 

 

 

11-Aug-03

 

2.30

 

7,000

 

 

 

 

 

 

 

 

 

 

 

8-Aug-03

 

2.20

 

7,400

 

 

 

 

 

 

 

 

7-Aug-03

 

2.30

 

12,000

 

 

 

 

 

 

 

 

6-Aug-03

 

2.30

 

4,500

 

 

 

 

 

 

 

 

5-Aug-03

 

2.30

 

3,900

 

 

 

 

 

 

 

 

4-Aug-03

 

2.30

 

9,000

 

 

 

 

 

 

 

 

1-Aug-03

 

2.50

 

4,600

 

 

 

 

 

 

 

 

31-Jul-03

 

2.40

 

18,700

 

 

 

 

 

 

 

 

30-Jul-03

 

2.60

 

1,400

 

 

 

 

 

 

 

 

29-Jul-03

 

2.70

 

5,200

 

 

 

 

 

 

 

 

28-Jul-03

 

2.50

 

2,700

 

 

 

 

 

 

 

 

25-Jul-03

 

2.70

 

6,100

 

 

 

 

 

 

 

 

24-Jul-03

 

2.70

 

6,700

 

 

 

 

 

 

 

 

23-Jul-03

 

2.70

 

30,900

 

 

 

 

 

 

 

 

22-Jul-03

 

2.70

 

13,400

 

 

 

 

 

 

 

 

21-Jul-03

 

2.80

 

43,900

 

 

 

 

 

 

 

 

18-Jul-03

 

2.80

 

8,200

 

 

 

 

 

 

 

 

17-Jul-03

 

2.80

 

120,000

 

 

 

 

 

 

 

 

16-Jul-03

 

2.70

 

12,300

 

 

 

 

 

 

 

 

15-Jul-03

 

2.70

 

17,000

 

 

 

 

 

 

 

 

14-Jul-03

 

2.80

 

18,400

 

 

 

 

 

 

 

 

11-Jul-03

 

2.80

 

7,600

 

 

 

 

 

 

 

 

10-Jul-03

 

2.80

 

17,200

 

 

 

 

 

 

 

 

9-Jul-03

 

2.80

 

4,700

 

 

 

 

 

 

 

 

8-Jul-03

 

2.80

 

33,300

 

 

 

 

 

 

 

 

7-Jul-03

 

2.70

 

13,500

 

 

 

 

 

 

 

 

3-Jul-03

 

2.80

 

1,500

 

 

 

 

 

 

 

 

2-Jul-03

 

2.80

 

6,900

 

 

 

 

 

 

 

 

1-Jul-03

 

2.60

 

3,300

 

 

 

 

 

 

 

 

30-Jun-03

 

2.80

 

3,300

 

 

 

 

 

 

 

 

27-Jun-03

 

2.70

 

18,300

 

 

 

 

 

 

 

 

26-Jun-03

 

2.60

 

22,400

 

 

 

 

 

 

 

 

25-Jun-03

 

2.40

 

8,700

 

 

 

 

 

 

 

 

24-Jun-03

 

2.50

 

14,200

 

 

 

 

 

 

 

 

23-Jun-03

 

2.60

 

18,300

 

 

 

 

 

 

 

 

20-Jun-03

 

2.80

 

9,900

 

 

 

 

 

 

 

 

19-Jun-03

 

2.80

 

54,000

 

 

 

 

 

 

 

 

18-Jun-03

 

2.50

 

9,900

 

 

 

 

 

 

 

 

17-Jun-03

 

2.50

 

8,000

 

 

 

 

 

 

 

 

16-Jun-03

 

2.60

 

4,900

 

 

 

 

 

 

 

 

 

 

 

13-Jun-03

 

2.50

 

7,900

 

 

 

 

 

 

 

 

12-Jun-03

 

2.60

 

11,300

 

 

 

 

 

 

 

 

11-Jun-03

 

2.60

 

10,700

 

 

 

 

 

 

 

 

10-Jun-03

 

2.70

 

12,100

 

 

 

 

 

 

 

 

9-Jun-03

 

2.80

 

30,800

 

 

 

 

 

 

 

 

6-Jun-03

 

2.70

 

48,900

 

 

 

 

 

 

 

 

5-Jun-03

 

2.30

 

23,200

 

 

 

 

 

 

 

 

4-Jun-03

 

2.30

 

62,700

 

 

 

 

 

 

 

 

3-Jun-03

 

2.00

 

19,500

 

 

 

 

 

 

 

 

2-Jun-03

 

2.00

 

12,900

 

 

 

 

 

 

 

 

30-May-03

 

2.00

 

2,300

 

 

 

 

 

 

 

 

29-May-03

 

2.10

 

4,200

 

 

 

 

 

 

 

 

28-May-03

 

1.90

 

361,700

 

 

 

 

 

 

 

 

27-May-03

 

2.00

 

9,500

 

 

 

 

 

 

 

 

23-May-03

 

2.20

 

3,400

 

 

 

 

 

 

 

 

22-May-03

 

2.20

 

23,000

 

 

 

 

 

 

 

 

21-May-03

 

2.40

 

7,000

 

 

 

 

 

 

 

 

20-May-03

 

2.20

 

4,700

 

 

 

 

 

 

 

 

19-May-03

 

2.40

 

13,400

 

 

 

 

 

 

 

 

16-May-03

 

2.30

 

19,800

 

 

 

 

 

 

 

 

15-May-03

 

2.00

 

5,200

 

 

 

 

 

 

 

 

14-May-03

 

1.90

 

13,200

 

 

 

 

 

 

 

 

13-May-03

 

2.10

 

20,700

 

 

 

 

 

 

 

 

12-May-03

 

2.10

 

26,400

 

 

 

 

 

 

 

 

9-May-03

 

2.00

 

21,800

 

 

 

 

 

 

 

 

8-May-03

 

2.00

 

12,000

 

 

 

 

 

 

 

 

7-May-03

 

1.90

 

9,500

 

 

 

 

 

 

 

 

6-May-03

 

2.00

 

1,000

 

 

 

 

 

 

 

 

5-May-03

 

1.90

 

1,000

 

 

 

 

 

 

 

 

2-May-03

 

1.90

 

11,700

 

 

 

 

 

 

 

 

1-May-03

 

2.00

 

1,800

 

 

 

 

 

 

 

 

30-Apr-03

 

1.90

 

1,900

 

 

 

 

 

 

 

 

29-Apr-03

 

2.00

 

2,300

 

 

 

 

 

 

 

 

28-Apr-03

 

2.00

 

13,400

 

 

 

 

 

 

 

 

25-Apr-03

 

2.20

 

7,300

 

 

 

 

 

 

 

 

24-Apr-03

 

2.20

 

2,200

 

 

 

 

 

 

 

 

23-Apr-03

 

2.00

 

9,600

 

 

 

 

 

 

 

 

22-Apr-03

 

1.80

 

10,500

 

 

 

 

 

 

 

 

21-Apr-03

 

2.00

 

900

 

 

 

 

 

 

 

 

 

 

 

17-Apr-03

 

1.90

 

5,200

 

 

 

 

 

 

 

 

16-Apr-03

 

1.90

 

3,700

 

 

 

 

 

 

 

 

15-Apr-03

 

2.10

 

100

 

 

 

 

 

 

 

 

14-Apr-03

 

2.10

 

1,100

 

 

 

 

 

 

 

 

11-Apr-03

 

2.00

 

2,900

 

 

 

 

 

 

 

 

10-Apr-03

 

2.00

 

200

 

 

 

 

 

 

 

 

9-Apr-03

 

2.00

 

1,000

 

 

 

 

 

 

 

 

8-Apr-03

 

2.00

 

3,000

 

 

 

 

 

 

 

 

7-Apr-03

 

2.10

 

2,200

 

 

 

 

 

 

 

 

4-Apr-03

 

2.20

 

3,200

 

 

 

 

 

 

 

 

3-Apr-03

 

2.20

 

700

 

 

 

 

 

 

 

 

2-Apr-03

 

2.20

 

100

 

 

 

 

 

 

 

 

1-Apr-03

 

2.20

 

3,300

 

 

 

 

 

 

 

 

31-Mar-03

 

2.20

 

5,500

 

 

 

 

 

 

 

 

28-Mar-03

 

2.30

 

1,500

 

 

 

 

 

 

 

 

27-Mar-03

 

2.40

 

1,200

 

 

 

 

 

 

 

 

26-Mar-03

 

2.30

 

3,000

 

 

 

 

 

 

 

 

25-Mar-03

 

2.30

 

500

 

 

 

 

 

 

 

 

24-Mar-03

 

2.40

 

2,300

 

 

 

 

 

 

 

 

21-Mar-03

 

2.30

 

700

 

 

 

 

 

 

 

 

20-Mar-03

 

2.30

 

1,400

 

 

 

 

 

 

 

 

19-Mar-03

 

2.20

 

6,300

 

 

 

 

 

 

 

 

18-Mar-03

 

1.90

 

3,200

 

 

 

 

 

 

 

 

17-Mar-03

 

1.90

 

1,800

 

 

 

 

 

 

 

 

14-Mar-03

 

1.90

 

14,100

 

 

 

 

 

 

 

 

13-Mar-03

 

1.90

 

3,300

 

 

 

 

 

 

 

 

12-Mar-03

 

1.90

 

6,700

 

 

 

 

 

 

 

 

11-Mar-03

 

1.90

 

9,200

 

 

 

 

 

 

 

 

10-Mar-03

 

1.90

 

600

 

 

 

 

 

 

 

 

7-Mar-03

 

1.90

 

3,600

 

 

 

 

 

 

 

 

6-Mar-03

 

2.00

 

1,600

 

 

 

 

 

 

 

 

5-Mar-03

 

2.00

 

3,800

 

 

 

 

 

 

 

 

4-Mar-03

 

2.10

 

1,000

 

 

 

 

 

 

 

 

3-Mar-03

 

2.00

 

1,900

 

 

 

 

 

 

 

 

28-Feb-03

 

2.10

 

1,800

 

 

 

 

 

 

 

 

27-Feb-03

 

2.10

 

3,100

 

 

 

 

 

 

 

 

26-Feb-03

 

2.00

 

600

 

 

 

 

 

 

 

 

25-Feb-03

 

2.10

 

3,500

 

 

 

 

 

 

 

 

24-Feb-03

 

2.10

 

2,000

 

 

 

 

 

 

 

 

21-Feb-03

 

2.10

 

100

 

 

 

 

 

 

 

 

20-Feb-03

 

2.10

 

600

 

 

 

 

 

 

 

 

19-Feb-03

 

2.10

 

2,100

 

 

 

 

 

 

 

 

18-Feb-03

 

2.20

 

2,400

 

 

 

 

 

 

 

 

14-Feb-03

 

2.20

 

200

 

 

 

 

 

 

 

 

13-Feb-03

 

2.20

 

5,500

 

 

 

 

 

 

 

 

12-Feb-03

 

2.20

 

1,500

 

 

 

 

 

 

 

 

11-Feb-03

 

2.20

 

900

 

 

 

 

 

 

 

 

10-Feb-03

 

2.30

 

2,500

 

 

 

 

 

 

 

 

7-Feb-03

 

2.40

 

4,300

 

 

 

 

 

 

 

 

6-Feb-03

 

2.40

 

4,400

 

 

 

 

 

 

 

 

5-Feb-03

 

2.30

 

1,700

 

 

 

 

 

 

 

 

4-Feb-03

 

2.40

 

7,100

 

 

 

 

 

 

 

 

3-Feb-03

 

2.40

 

3,300

 

 

 

 

 

 

 

 

31-Jan-03

 

2.60

 

5,100

 

 

 

 

 

 

 

 

30-Jan-03

 

2.50

 

10,100

 

 

 

 

 

 

 

 

29-Jan-03

 

2.50

 

2,700

 

 

 

 

 

 

 

 

28-Jan-03

 

2.60

 

300

 

 

 

 

 

 

 

 

27-Jan-03

 

2.70

 

200

 

 

 

 

 

 

 

 

24-Jan-03

 

2.70

 

4,100

 

 

 

 

 

 

 

 

23-Jan-03

 

2.70

 

4,000

 

 

 

 

 

 

 

 

22-Jan-03

 

2.50

 

1,300

 

 

 

 

 

 

 

 

21-Jan-03

 

2.50

 

800

 

 

 

 

 

 

 

 

17-Jan-03

 

2.50

 

2,800

 

 

 

 

 

 

 

 

16-Jan-03

 

2.30

 

3,900

 

 

 

 

 

 

 

 

15-Jan-03

 

2.10

 

8,200

 

 

 

 

 

 

 

 

14-Jan-03

 

2.10

 

6,400

 

 

 

 

 

 

 

 

13-Jan-03

 

2.00

 

800

 

 

 

 

 

 

 

 

10-Jan-03

 

2.00

 

1,200

 

 

 

 

 

 

 

 

9-Jan-03

 

2.00

 

100

 

 

 

 

 

 

 

 

8-Jan-03

 

2.00

 

1,300

 

 

 

 

 

 

 

 

7-Jan-03

 

2.00

 

11,500

 

 

 

 

 

 

 

 

6-Jan-03

 

1.90

 

11,100

 

 

 

 

 

 

 

 

3-Jan-03

 

1.90

 

200

 

 

 

 

 

 

 

 

2-Jan-03

 

2.00

 

1,900