EX-16.C.4 3 ex16c4.txt EXHIBITS REVISED OPINION OF COMSTOCK 4-24-01 Exhibit 16.C.4 FRONTIER ADJUSTERS OF AMERICA, INC. COMPARATIVE FINANCIAL STATEMENTS BALANCE SHEET
Month End Year End Year End Year End Year End Year End ASSETS Dec-00 Jun-00 Jun-99 Jun-98 Jun-97 Jun-96 ------------ ------------ ------------ ------------ ------------ ------------ Cash & Equivalents $ 3,420,000 $ 2,130,000 $ 6,890,000 $ 2,220,000 $ 2,300,000 $ 1,780,000 Net Receivables 1,040,000 1,370,000 1,740,000 1,800,000 1,640,000 1,570,000 Prepaid Expenses -- 210,000 340,000 320,000 270,000 290,000 Other Current Assets 510,000 240,000 170,000 220,000 410,000 140,000 ------------ ------------ ------------ ------------ ------------ ------------ Total Current Assets $ 4,970,000 $ 3,950,000 $ 9,140,000 $ 4,560,000 $ 4,620,000 $ 3,780,000 Gross Property & Equipment $ 2,660,000 $ 2,660,000 $ 2,540,000 $ 2,540,000 $ 2,450,000 $ 2,440,000 Accumulated Depreciation 1,100,000 1,040,000 930,000 820,000 720,000 890,000 ------------ ------------ ------------ ------------ ------------ ------------ Net Property & Equipment $ 1,560,000 $ 1,620,000 $ 1,610,000 $ 1,720,000 $ 1,730,000 $ 1,550,000 Other Investments -- 830,000 1,030,000 1,130,000 1,150,000 1,080,000 Intangibles -- 200,000 260,000 190,000 280,000 340,000 Other Assets 1,060,000 120,000 80,000 200,000 130,000 130,000 ------------ ------------ ------------ ------------ ------------ ------------ Total Assets $ 7,590,000 $ 6,720,000 $ 12,120,000 $ 7,800,000 $ 7,910,000 $ 6,880,000 ============ ============ ============ ============ ============ ============ LIABILITIES Long Term Debt, Current Portion -- -- -- $ 30,000 $ 30,000 $ 30,000 Accounts Payable 20,000 140,000 580,000 610,000 430,000 150,000 Accrued & Other Expenses 370,000 280,000 6,490,000 710,000 850,000 410,000 ------------ ------------ ------------ ------------ ------------ ------------ Total Current Liabilities $ 390,000 $ 420,000 $ 7,070,000 $ 1,350,000 $ 1,310,000 $ 590,000 Long Term Debt -- -- -- -- $ 30,000 $ 60,000 Total Liabilities $ 390,000 $ 420,000 $ 7,070,000 $ 1,350,000 $ 1,340,000 $ 650,000 ============ ============ ============ ============ ============ ============ EQUITY Common Stock $ 90,000 $ 90,000 $ 90,000 $ 50,000 $ 50,000 $ 50,000 Capital Surplus 2,100,000 2,100,000 2,100,000 2,150,000 2,150,000 2,150,000 Retained Earnings 5,190,000 4,290,000 3,040,000 4,780,000 4,900,000 4,520,000 Less Deductions from Equity (180,000) (180,000) (180,000) (530,000) (530,000) (490,000) ------------ ------------ ------------ ------------ ------------ ------------ Common Equity $ 7,200,000 $ 6,300,000 $ 5,050,000 $ 6,450,000 $ 6,570,000 $ 6,230,000 ------------ ------------ ------------ ------------ ------------ ------------ Total Equity $ 7,200,000 $ 6,300,000 $ 5,050,000 $ 6,450,000 $ 6,570,000 $ 6,230,000 ------------ ------------ ------------ ------------ ------------ ------------ Total Liabilities & Equity $ 7,590,000 $ 6,720,000 $ 12,120,000 $ 7,800,000 $ 7,910,000 $ 6,880,000 ============ ============ ============ ============ ============ ============ Common Shares Outstanding 8,960,000 8,960,000 8,960,000 4,610,000 4,610,000 4,620,000
ComStock Valuation Advisors, Inc. Exhibit A-1 FRONTIER ADJUSTERS OF AMERICA, INC. COMPARATIVE FINANCIAL STATEMENTS INCOME STATEMENT
12 Months Year End Year End Year End Year End Year End Dec-00 Jun-00 Jun-99 Jun-98 Jun-97 Jun-96 ----------- ----------- ----------- ----------- ----------- ----------- Sales $ 6,080,000 $ 6,260,000 $ 6,340,000 $ 5,820,000 $ 6,160,000 $ 5,640,000 Cost of Sales 3,490,000 4,160,000 4,740,000 4,670,000 4,450,000 3,740,000 ----------- ----------- ----------- ----------- ----------- ----------- Gross Profit $ 2,590,000 $ 2,100,000 $ 1,600,000 $ 1,150,000 $ 1,710,000 $ 1,900,000 Depreciation & Amortization 200,000 220,000 270,000 250,000 240,000 190,000 ----------- ----------- ----------- ----------- ----------- ----------- EBIT $ 2,390,000 $ 1,880,000 $ 1,330,000 $ 900,000 $ 1,470,000 $ 1,710,000 Interest Expense -- -- -- 30,000 10,000 10,000 Other Income/(Expense) 230,000 190,000 230,000 160,000 180,000 150,000 Special Items -- -- (580,000) (60,000) (50,000) -- ----------- ----------- ----------- ----------- ----------- ----------- Pretax Income $ 2,620,000 $ 2,070,000 $ 980,000 $ 1,030,000 $ 1,610,000 $ 1,870,000 Income taxes (1,040,000) (830,000) (440,000) (420,000) (620,000) (720,000) ----------- ----------- ----------- ----------- ----------- ----------- Net Income $ 1,580,000 $ 1,240,000 $ 540,000 $ 610,000 $ 990,000 $ 1,150,000 =========== =========== =========== =========== =========== =========== Primary Earnings Per Share $ 0.18 $ 0.14 $ 0.06 $ 0.13 $ 0.21 $ 0.25 EPS from Operations $ 0.27 $ 0.21 $ 0.15 $ 0.20 $ 0.32 $ 0.37
ComStock Valuation Advisors, Inc. Exhibit A-2 FRONTIER ADJUSTERS OF AMERICA, INC. COMPARATIVE FINANCIAL STATEMENTS ADJUSTED OPERATING PERFORMANCE BEFORE DEBT SERVICE
12 Months Year End Year End Year End Year End Year End Dec-00 Jun-00 Jun-99 Jun-98 Jun-97 Jun-96 ----------- ----------- ----------- ----------- ----------- ----------- Pretax Income, as reported $ 2,620,000 $ 2,070,000 $ 980,000 $ 1,030,000 $ 1,610,000 $ 1,870,000 Pretax Adjustments Interest Expense -- -- -- $ (30,000) $ (10,000) $ (10,000) ----------- ----------- ----------- ----------- ----------- ----------- Total Pretax Adjustments -- -- -- $ (30,000) $ (10,000) $ (10,000) Adjusted EBIT $ 2,620,000 $ 2,070,000 $ 980,000 $ 1,000,000 $ 1,600,000 $ 1,860,000 =========== =========== =========== =========== =========== =========== Adjusted EBIT Margin 43.1% 33.1% 15.5% 17.2% 26.0% 33.0% =========== =========== =========== =========== =========== =========== 3 Year Weighted Average $ 2,163,333 5 Year Weighted Average $ 1,861,333 WEIGHTING ASSIGNED TO EACH YEAR Three-year weighting 3 2 1 Five-year weighting 5 4 3 2 1 Adjusted EBIT $ 2,620,000 $ 2,070,000 $ 980,000 $ 1,000,000 $ 1,600,000 $ 1,860,000 Depreciation & Amortization 200,000 220,000 270,000 250,000 240,000 190,000 ----------- ----------- ----------- ----------- ----------- ----------- Adjusted EBITDA $ 2,820,000 $ 2,290,000 $ 1,250,000 $ 1,250,000 $ 1,840,000 $ 2,050,000 =========== =========== =========== =========== =========== =========== 3 Year Weighted Average $ 2,381,667 5 Year Weighted Average $ 2,090,000
ComStock Valuation Advisors, Inc. Exhibit A-3 FRONTIER ADJUSTERS OF AMERICA, INC. COMPARATIVE FINANCIAL STATEMENTS COMMON SIZE BALANCE SHEET
Month End Year End Year End Year End Year End Year End ASSETS Dec-00 Jun-00 Jun-99 Jun-98 Jun-97 Jun-96 ------ ------ ------ ------ ------ ------ Cash & Equivalents 45.1% 31.7% 56.8% 28.5% 29.1% 25.9% Net Receivables 13.7% 20.4% 14.4% 23.1% 20.7% 22.8% Other Current Assets 6.7% 6.7% 4.2% 6.9% 8.6% 6.3% ------ ------ ------ ------ ------ ------ Total Current Assets 65.5% 58.8% 75.4% 58.5% 58.4% 54.9% Net Property & Equipment 20.6% 24.1% 13.3% 22.1% 21.9% 22.5% Other Assets 14.0% 17.1% 11.3% 19.5% 19.7% 22.5% ------ ------ ------ ------ ------ ------ Total Assets 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% ====== ====== ====== ====== ====== ====== LIABILITIES & EQUITIES Notes Payable & Current Portion 0.0% 0.0% 0.0% 0.4% 0.4% 0.4% Accounts Payable 0.3% 2.1% 4.8% 7.8% 5.4% 2.2% Accrued & Other Expenses 4.9% 4.2% 53.5% 9.1% 10.7% 6.0% ------ ------ ------ ------ ------ ------ Total Current Liabilities 5.1% 6.3% 58.3% 17.3% 16.6% 8.6% Long Term Debt 0.0% 0.0% 0.0% 0.0% 0.4% 0.9% Total Liabilities 5.1% 6.3% 58.3% 17.3% 16.9% 9.4% ------ ------ ------ ------ ------ ------ Total Equity 94.9% 93.8% 41.7% 82.7% 83.1% 90.6% ------ ------ ------ ------ ------ ------ Total Liabilities & Equity 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% ====== ====== ====== ====== ====== ====== COMMON SIZE INCOME STATEMENT 12 Months Year End Year End Year End Year End Year End Dec-00 Jun-00 Jun-99 Jun-98 Jun-97 Jun-96 ------ ------ ------ ------ ------ ------ Sales 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% Cost of Sales 57.4% 66.5% 74.8% 80.2% 72.2% 66.3% ------ ------ ------ ------ ------ ------ Gross Profit 42.6% 33.5% 25.2% 19.8% 27.8% 33.7% Depreciation & Amortization 3.3% 3.5% 4.3% 4.3% 3.9% 3.4% ------ ------ ------ ------ ------ ------ EBIT 39.3% 30.0% 21.0% 15.5% 23.9% 30.3% Interest Expense 0.0% 0.0% 0.0% 0.5% 0.2% 0.2% Other Income/(Expense) 3.8% 3.0% 3.6% 2.7% 2.9% 2.7% Special Items 0.0% 0.0% (9.1%) (1.0%) (0.8%) 0.0% ------ ------ ------ ------ ------ ------ Pretax Income 43.1% 33.1% 15.5% 17.7% 26.1% 33.2% Income taxes (17.1%) (13.3%) (6.9%) (7.2%) (10.1%) (12.8%) ------ ------ ------ ------ ------ ------ Net Income 26.0% 19.8% 8.5% 10.5% 16.1% 20.4% ====== ====== ====== ====== ====== ======
ComStock Valuation Advisors, Inc. Exhibit A-4 FRONTIER ADJUSTERS OF AMERICA, INC. COMPARATIVE FINANCIAL STATEMENTS BALANCE SHEET TREND ANALYSIS
Month End Year End Year End Year End Year End Year End ASSETS Dec-00 Jun-00 Jun-99 Jun-98 Jun-97 Jun-96 ------ ------ ------ ------ ------ ------ Cash & Equivalents 60.6% (69.1%) 210.4% (3.5%) 29.2% NA Net Receivables (24.1%) (21.3%) (3.3%) 9.8% 4.5% NA Other Current Assets 13.3% (11.8%) (5.6%) (20.6%) 58.1% NA ------ ------ ------ ------ ------ ------ Total Current Assets 25.8% (56.8%) 100.4% (1.3%) 22.2% NA Net Property & Equipment (3.7%) 0.6% (6.4%) (0.6%) 11.6% NA Other Assets (7.8%) (16.1%) (9.9%) (2.6%) 0.6% NA ------ ------ ------ ------ ------ ------ Total Assets 12.9% (44.6%) 55.4% (1.4%) 15.0% NA ====== ====== ====== ====== ====== ====== LIABILITIES & EQUITIES Notes Payable & Current Portion NA NA (100.0%) 0.0% 0.0% NA Accounts Payable (85.7%) (75.9%) (4.9%) 41.9% 186.7% NA Accrued & Other Expenses 32.1% (95.7%) 814.1% (16.5%) 107.3% NA ------ ------ ------ ------ ------ ------ Total Current Liabilities (7.1%) (94.1%) 423.7% 3.1% 122.0% NA Long Term Debt NA NA NA (100.0%) (50.0%) NA Total Liabilities (7.1%) (94.1%) 423.7% 0.7% 106.2% NA ------ ------ ------ ------ ------ ------ Total Equity 14.3% 24.8% (21.7%) (1.8%) 5.5% NA ------ ------ ------ ------ ------ ------ Total Liabilities & Equity 12.9% (44.6%) 55.4% (1.4%) 15.0% NA ====== ====== ====== ====== ====== ====== INCOME STATEMENT TREND ANALYSIS 12 Months Year End Year End Year End Year End Year End Dec-00 Jun-00 Jun-99 Jun-98 Jun-97 Jun-96 ------ ------ ------ ------ ------ ------ Sales (2.9%) (1.3%) 8.9% (5.5%) 9.2% NA Cost of Sales (16.1%) (12.2%) 1.5% 4.9% 19.0% NA ------ ------ ------ ------ ------ ------ Gross Profit 23.3% 31.3% 39.1% (32.7%) (10.0%) NA Depreciation & Amortization (9.1%) (18.5%) 8.0% 4.2% 26.3% NA ------ ------ ------ ------ ------ ------ EBIT 27.1% 41.4% 47.8% (38.8%) (14.0%) NA Interest Expense NA NA (100.0%) 200.0% 0.0% NA Other Income/(Expense) 21.1% (17.4%) 43.8% (11.1%) 20.0% NA Special Items NA (100.0%) 866.7% 20.0% NA NA ------ ------ ------ ------ ------ ------ Pretax Income 26.6% 111.2% (4.9%) (36.0%) (13.9%) NA Income taxes 25.3% 88.6% 4.8% (32.3%) (13.9%) NA ------ ------ ------ ------ ------ ------ Net Income 27.4% 129.6% (11.5%) (38.4%) (13.9%) NA ====== ====== ====== ====== ====== ======
ComStock Valuation Advisors, Inc. Exhibit A-5 FRONTIER ADJUSTERS OF AMERICA, INC. COMPARATIVE FINANCIAL STATEMENTS RATIO ANALYSIS
12 Months Year End Year End Year End Year End Dec-00 Jun-00 Jun-99 Jun-98 Jun-97 3-yr. Avg. ------ ------ ------ ------ ------ ---------- LIQUIDITY Current Ratio 12.7 9.4 1.3 3.4 3.5 Quick Ratio 11.4 8.3 1.2 3.0 3.0 Working Capital Per Share 0.51 0.39 0.23 0.70 0.72 Cash Flow Per Share 0.20 0.16 0.09 0.19 0.27 ACTIVITY Receivables Turnover 5.0 4.0 3.6 3.4 3.8 4.2 Total Asset Turnover 0.8 0.7 0.6 0.7 0.8 Accounts Payable Turnover 191.3 31.8 8.1 7.5 9.5 77.0 Average Collection Period (Days) 71 89 101 106 94 PERFORMANCE Sales/Net Property & Equipment 3.9 3.9 3.9 3.4 3.6 Sales/Stockholder Equity 0.8 1.0 1.3 0.9 0.9 Sales/Working Capital 1.3 1.8 3.1 1.8 1.9 Sales/Total Assets 0.8 0.9 0.5 0.7 0.8 PROFITABILITY Operating Margin Before Depr (%) 42.6 33.5 25.2 19.8 27.8 Operating Margin After Depr (%) 39.3 30.0 21.0 15.5 23.9 Pretax Profit Margin (%) 43.1 33.1 15.5 17.7 26.1 Net Profit Margin (%) 26.0 19.8 8.5 10.5 16.1 Return on Assets (%) 20.8 18.5 4.5 7.8 12.5 Return on Equity (%) 21.9 19.7 10.7 9.5 15.1 Return on Investment (%) 21.9 19.7 10.7 9.4 14.9 ADJUSTED PROFITABILITY Operating Margin Before Depr (%) 46.4 36.6 19.7 21.5 29.9 Operating Margin After Depr (%) 43.1 33.1 15.5 17.2 26.0 Pretax Profit Margin (%) 43.1 33.1 15.5 17.7 26.1 Net Profit Margin (%) 25.5 19.5 9.1 10.5 15.4 Return on Assets (%) 20.4 18.2 4.8 7.8 12.0 Return on Equity (%) 21.5 19.4 11.5 9.4 14.5 Return on Investment (%) 21.5 19.4 11.5 9.4 14.3 LEVERAGE Interest Coverage Before Tax NA NA NA 35.3 162.0 Interest Coverage After Tax NA NA NA 21.3 100.0 Long-Term Debt/Common Equity (%) -- -- -- -- 0.5 Long-Term Debt/Total Equity (%) -- -- -- -- 0.5 Total Debt/Invested Capital (%) -- -- -- 0.5 0.9 Total Debt/Total Assets (%) -- -- -- 0.4 0.8 Total Assets/Common Equity 1.1 1.1 2.4 1.2 1.2
ComStock Valuation Advisors, Inc. Exhibit A-6 FRONTIER ADJUSTERS OF AMERICA, INC. ANALYSIS OF WORKING CAPITAL
Month End Year End Year End Year End Year End Year End Dec-00 Jun-00 Jun-99 Jun-98 Jun-97 Jun-96 ----------- ----------- ----------- ----------- ----------- ----------- NON-CASH CURRENT ASSETS Net Receivables $ 1,040,000 $ 1,370,000 $ 1,740,000 $ 1,800,000 $ 1,640,000 $ 1,570,000 Prepaid Expenses 0 210,000 340,000 320,000 270,000 290,000 Other Current Assets 510,000 240,000 170,000 220,000 410,000 140,000 ----------- ----------- ----------- ----------- ----------- ----------- Total Non-cash Current Assets $ 1,550,000 $ 1,820,000 $ 2,250,000 $ 2,340,000 $ 2,320,000 $ 2,000,000 NON-DEBT CURRENT LIABILITIES Accounts Payable $ 20,000 $ 140,000 $ 580,000 $ 610,000 $ 430,000 $ 150,000 Accrued & Other Expenses 370,000 280,000 6,490,000 710,000 850,000 410,000 ----------- ----------- ----------- ----------- ----------- ----------- Total Non-Debt Current Liabilities $ 390,000 $ 420,000 $ 7,070,000 $ 1,320,000 $ 1,280,000 $ 560,000 ADJUSTED WORKING CAPITAL $ 1,160,000 $ 1,400,000 $(4,820,000) $ 1,020,000 $ 1,040,000 $ 1,440,000 CHANGE IN WORKING CAPITAL $ 240,000 $(6,220,000) $ 5,840,000 $ 20,000 $ 400,000 N/A Average historical change $ 56,000 Median historical change $ 240,000 Average change from forecast $ (28,000) ----------- Average of data points $ 89,000 Selected change in working capital $ (28,000)
ComStock Valuation Advisors, Inc. Exhibit A-1 FRONTIER ADJUSTERS OF AMERICA, INC. CAPITALIZED CASH FLOW METHOD AS OF 4/23/01 AFTER-TAX CASH FLOW CALCULATION: Adjusted EBIT $ 1,861,333 Income Taxes at 40.9% (761,844) ------------ Adjusted After-Tax Earnings $ 1,099,490 Average Change in Working Capital (28,000) ------------ Adjusted Cash Flow $ 1,071,490 CALCULATION OF VALUE: Adjusted Cash Flow $ 1,071,490 Cash flow multiple 10.9 ------------ Value of invested capital, minority basis $ 11,679,241 Debt outstanding -- ------------ Equity value, minority basis $ 11,679,241 Premium for Control of 35% 4,087,734 ------------ Equity value, freely-traded basis $ 15,766,975 Discount for risks associated with the thinly-traded market of 10% (1,576,698) ------------ Equity value, privately-held basis $ 14,190,277 ============ ROUNDED VALUE $ 14,190,000 ============ ComStock Valuation Advisors, Inc. Exhibit B-1 FRONTIER ADJUSTERS OF AMERICA, INC. CAPITALIZED CASH FLOW METHOD AS OF APRIL 23, 2001 WEIGHTED AVERAGE ADJUSTED PRETAX EARNINGS
12 Months Year End Year End Year End Year End Dec-00 Jun-00 Jun-99 Jun-98 Jun-97 ----------- ----------- ----------- ----------- ----------- Pretax Income, as reported $ 2,620,000 $ 2,070,000 $ 980,000 $ 1,030,000 $ 1,610,000 Pretax Adjustments Interest Expense -- -- -- $ (30,000) $ (10,000) ----------- ----------- ----------- ----------- ----------- Total Pretax Adjustments -- -- -- $ (30,000) $ (10,000) Adjusted EBIT $ 2,620,000 $ 2,070,000 $ 980,000 $ 1,000,000 $ 1,600,000 =========== =========== =========== =========== =========== Adjusted EBIT Margin 43.1% 33.1% 15.5% 17.2% 26.0% =========== =========== =========== =========== =========== Adjusted EBIT $ 2,620,000 $ 2,070,000 $ 980,000 $ 1,000,000 $ 1,600,000 Weight Factors 5 4 3 2 1 ----------- ----------- ----------- ----------- ----------- Weighted Adjusted Pretax Earnings $13,100,000 $ 8,280,000 $ 2,940,000 $ 2,000,000 $ 1,600,000 Sum of Weight Factors 15 Weighted Average Adjusted EBIT $ 1,861,333
ComStock Valuation Advisors, Inc. Exhibit B-2 FRONTIER ADJUSTERS OF AMERICA, INC. COST OF CAPITAL ANALYSIS AS OF APRIL 23, 2001 ASSUMPTIONS DETAILS FOR FRONTIER ADJUSTERS OF AMERICA, INC. Tax Rate 40.93% Percent Debt 10.00% Cost of Debt 8.00% Percent Equity 90.00% RISK FREE RATE 20 Year Treasuries (semi-annual rate) 5.78% 20 Year Treasuries (annualized rate) 5.86% LARGE CAP EQUITY RISK PREMIUM SBBI 2001 Rate 7.80% SMALL CAP EQUITY RISK PREMIUM SBBI 2001 Rate 2.60% BETA ESTIMATE Levered Percent Tax Unlev. Company Beta Debt/MC Rate Beta ------- ---- ------- ---- ---- ARTHUR J.GALLAGHER & CO. 0.43 (0.0%) 35.0% 0.43 CHOICEPOINT, INC. 0.79 7.8% 43.3% 0.76 CRAWFORD & CO. 0.03 11.3% 38.4% N/A HALLMARK FINANCIAL SERVICES, INC. (0.21) 66.1% 38.9% N/A HILB ROGAL & HAMILTON CO. 0.07 18.4% 41.1% N/A INSPIRE INSURANCE SOLUTIONS, INC. 2.75 0.0% 18.1% 2.75 INSURANCE MGMT SOLUTIONS GROUP 2.08 4.6% 44.2% 2.02 KAYE GROUP, INC. 0.54 3.0% 30.1% 0.52 MEADOWBROOK INSURANCE GROUP, INC. (0.02) 64.5% 44.2% N/A PROGRESSIVE CORP. 1.15 13.0% 28.4% 1.04 ST. PAUL COS., INC. 0.78 17.4% 23.4% 0.67 STIRLING COOKE BROWN HOLDINGS, LTD. 0.92 0.0% 28.7% 0.92 ----- ----- First quartile 2.2% 0.64 Median 9.6% 0.84 Average 17.2% 1.14 Third quartile 17.7% 1.29 Ibbotson Median Adj. Beta for SIC 6411 0.34 Ibbotson Median Sum Beta for SIC 6411 0.66 Ibbotson SIC Composite Adj. Beta for SIC 6411 0.63 Ibbotson SIC Composite Sum Beta for SIC 6411 0.72 ----- Selected Unleveraged Beta 0.80 ===== Releveraged Beta based on Hamada Releveraging Formula 0.85 =====
ComStock Valuation Advisors, Inc. Exhibit B-1 FRONTIER ADJUSTERS OF AMERICA, INC. COST OF CAPITAL ANALYSIS AS OF APRIL 23, 2001 CAPITALIZATION RATES RELEVERAGED COST OF EQUITY CAPITAL Risk Free Rate 5.86% Market Risk Premium 7.80% Leveraged Beta 0.85 ------ Equity Risk Premium (Leveraged) 6.65% Small Company Premium 2.60% ------ Releveraged Cost of Equity Capital 15.11% ====== WEIGHTED AVERAGE COST OF CAPITAL (WACC) Weight Cost ------ ---- Leveraged Cost of Equity Capital 90.0% 15.1% 13.60% After Tax Cost of Debt 10.0% 4.7% 0.47% ------ Weighted Average Cost of Capital (WACC) 14.07% ====== CASH FLOW MULTIPLE WACC 14.07% Long-term cash flow growth rate 4.50% ------ Cash flow multiple = (1 + g)/(WACC - g) 10.9 ====== GROWTH RATE ANALYSIS Growth rate in residual year of cash flow forecast 4.0% CAGR for 20-year forecast period 5.0% ------ Average of data points 4.5% Selected long-term cash flow growth rate 4.5% ComStock Valuation Advisors, Inc. Exhibit B-2 FRONTIER ADJUSTERS OF AMERICA, INC. DISCOUNTED VALUE AS OF APRIL 23, 2001 ESTIMATED VALUE AS OF APRIL 23, 2001 Value of invested capital, minority basis $12,830,118 Debt outstanding 0 ----------- Equity value, minority basis $12,830,118 Premium for control of 35% 4,490,541 ----------- Equity value, freely-traded basis $17,320,660 Discount for risks associated with the thinly-traded market of 10% (1,732,066) ----------- Equity value, privately-held basis $15,588,594 =========== Rounded Value $15,590,000 =========== ComStock Valuation Advisors, Inc. Exhibit C-1 FRONTIER ADJUSTERS OF AMERICA, INC. DISCOUNTED VALUE AS OF APRIL 23, 2001 PRESENT VALUE CALCULATIONS
Projected Projected Projected Projected Projected Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 ----------- ----------- ----------- ----------- ----------- Operating Cash Flow $ 1,296,493 $ 1,137,550 $ 1,486,164 $ 1,480,152 $ 1,523,225 % to be reflected in valuation 67% 100% 100% 100% 100% ----------- ----------- ----------- ----------- ----------- Operating cash flow $$ reflected in valuation $ 864,329 $ 1,137,550 $ 1,486,164 $ 1,480,152 $ 1,523,225 Discount Periods 0.33 1.33 2.33 3.33 4.33 Discount Rate 14.07% 14.07% 14.07% 14.07% 14.07% Discount Factor 0.95706 0.83898 0.73546 0.64472 0.56518 ----------- ----------- ----------- ----------- ----------- Discounted Free Cash Flows $ 827,214 $ 954,381 $ 1,093,014 $ 954,284 $ 860,896 Present value of interim cash flows $ 4,689,790 Residual Value Calculation: Residual Cash Flow $ 1,523,225 Long-term growth rate of cash flows 4.0% Future Value of Residual Cash Flows $15,724,667 Discount Factor (based on five years) 0.51768 ----------- Present Value of Residual Cash Flows $ 8,140,328 Present Value of Interim Cash Flows $ 4,689,790 Present Value of Residual Cash Flows 8,140,328 ----------- Value of invested capital, minority basis $12,830,118 ===========
ComStock Valuation Advisors, Inc. Exhibit C-2 FRONTIER ADJUSTERS OF AMERICA, INC. DISCOUNTED VALUE AS OF APRIL 23, 2001 PROJECTED CASH FLOW
Projected Projected Projected Projected Projected Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 ----------- ----------- ----------- ----------- ----------- CASH FLOWS FROM OPERATIONS Adjusted Net Income $ 1,588,600 $ 1,606,000 $ 1,647,000 $ 1,689,000 $ 1,733,000 Non-cash Items: Depreciation 162,000 170,000 179,000 188,000 197,000 ----------- ----------- ----------- ----------- ----------- SUBTOTAL CASH FLOW FROM OPERATIONS $ 1,583,267 $ 1,610,616 $ 1,660,591 $ 1,711,586 $ 1,764,558 Changes in Working Capital: Receivables (138,000) (339,000) (45,000) (47,000) (48,000) A/P and Accrued Liabilities 13,226 35,934 49,573 3,567 3,667 ----------- ----------- ----------- ----------- ----------- SUBTOTAL CHANGES IN WORKING CAPITAL ($ 124,774) ($ 303,066) $ 4,573 ($ 43,433) ($ 44,333) Cash Flows From Investment Activities: Property and Equipment Additions, Net (162,000) (170,000) (179,000) (188,000) (197,000) ----------- ----------- ----------- ----------- ----------- CASH FLOW AVAILABLE FOR DEBT & DISTRIBUTIONS $ 1,296,493 $ 1,137,550 $ 1,486,164 $ 1,480,152 $ 1,523,225
ComStock Valuation Advisors, Inc. Exhibit C-3 FRONTIER ADJUSTERS OF AMERICA, INC. DISCOUNTED VALUE AS OF APRIL 23, 2001 PROJECTED INCOME STATEMENT
Adjusted Projected Projected Projected Projected Projected Jun-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 ----------- ----------- ----------- ----------- ----------- ----------- Total Revenues $ 6,080,000 $ 5,890,000 $ 6,067,000 $ 6,249,000 $ 6,436,000 $ 6,629,000 Annual Increase in Revenues 3.0% 3.0% 3.0% 3.0% Operating Expenses 3,490,000 3,322,600 3,458,000 3,562,000 3,669,000 3,779,000 ----------- ----------- ----------- ----------- ----------- ----------- EBITDA $ 2,590,000 $ 2,567,400 $ 2,609,000 $ 2,687,000 $ 2,767,000 $ 2,850,000 EBITDA Margin 42.6% 43.6% 43.0% 43.0% 43.0% 43.0% Depreciation 200,000 162,000 170,000 179,000 188,000 197,000 ----------- ----------- ----------- ----------- ----------- ----------- EBIT $ 2,390,000 $ 2,405,400 $ 2,439,000 $ 2,508,000 $ 2,579,000 $ 2,653,000 EBIT Margin 39.3% 40.8% 40.2% 40.1% 40.1% 40.0% Other Income/(Expense) 230,000 283,200 280,000 280,000 280,000 280,000 ----------- ----------- ----------- ----------- ----------- ----------- Pretax Income $ 2,620,000 $ 2,688,600 $ 2,719,000 $ 2,788,000 $ 2,859,000 $ 2,933,000 Corporate income taxes (1,072,000) (1,100,000) (1,113,000) (1,141,000) (1,170,000) (1,200,000) ----------- ----------- ----------- ----------- ----------- ----------- Net Income $ 1,548,000 $ 1,588,600 $ 1,606,000 $ 1,647,000 $ 1,689,000 $ 1,733,000 =========== =========== =========== =========== =========== =========== Effective tax rate 40.9% 40.9% 40.9% 40.9% 40.9% 40.9% =========== =========== =========== =========== =========== ===========
ComStock Valuation Advisors, Inc. Exhibit C-4 FRONTIER ADJUSTERS OF AMERICA, INC. DISCOUNTED CASH FLOW METHOD PROJECTED BALANCE SHEET
Actual Projected Projected Projected Projected Projected ASSETS Jun-00 Dec-01 Dec-02 Dec-03 Dec-04 Dec-05 ------------ ------------ ------------ ------------ ------------ ------------ Cash & Equivalents (before distributions) $ 3,420,000 $ 4,883,826 $ 6,197,760 $ 7,860,333 $ 9,517,900 $ 11,218,567 Net Receivables 1,040,000 1,178,000 1,517,000 1,562,000 1,609,000 1,657,000 Receivables Turnover 5.8 5.0 4.0 4.0 4.0 4.0 Other Current Assets 510,000 510,000 510,000 510,000 510,000 510,000 ------------ ------------ ------------ ------------ ------------ ------------ Total Current Assets $ 4,970,000 $ 6,571,826 $ 8,224,760 $ 9,932,333 $ 11,636,900 $ 13,385,567 Net Plant, Property & Equipment 1,560,000 1,560,000 1,560,000 1,560,000 1,560,000 1,560,000 Other Assets 1,060,000 1,060,000 1,060,000 1,060,000 1,060,000 1,060,000 ------------ ------------ ------------ ------------ ------------ ------------ Total Assets $ 7,590,000 $ 9,191,826 $ 10,844,760 $ 12,552,333 $ 14,256,900 $ 16,005,567 ============ ============ ============ ============ ============ ============ LIABILITIES Current Portion of Outstanding Debt $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Accounts Payable 20,000 33,226 69,160 118,733 122,300 125,967 Accounts Payable Turnover 174.5 100.0 50.0 30.0 30.0 30.0 Accrued & Other Expenses 370,000 370,000 381,000 392,000 404,000 416,000 ------------ ------------ ------------ ------------ ------------ ------------ Total Current Liabilities $ 390,000 $ 403,226 $ 450,160 $ 510,733 $ 526,300 $ 541,967 Long Term Debt $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 ------------ ------------ ------------ ------------ ------------ ------------ Total Liabilities $ 390,000 $ 403,226 $ 450,160 $ 510,733 $ 526,300 $ 541,967 EQUITY Common Stock & Capital Surplus $ 2,190,000 $ 2,190,000 $ 2,190,000 $ 2,190,000 $ 2,190,000 $ 2,190,000 Retained Earnings 5,190,000 6,778,600 8,384,600 10,031,600 11,720,600 13,453,600 Deductions from Equity (180,000) (180,000) (180,000) (180,000) (180,000) (180,000) ------------ ------------ ------------ ------------ ------------ ------------ Total Equity $ 7,200,000 $ 8,788,600 $ 10,394,600 $ 12,041,600 $ 13,730,600 $ 15,463,600 ------------ ------------ ------------ ------------ ------------ ------------ Total Liabilities & Equity $ 7,590,000 $ 9,191,826 $ 10,844,760 $ 12,552,333 $ 14,256,900 $ 16,005,567 ============ ============ ============ ============ ============ ============
ComStock Valuation Advisors, Inc. Exhibit C-5 FRONTIER ADJUSTERS OF AMERICA, INC. GUIDELINE COMPANIES METHOD USING LEVERAGED RATIOS SUMMARY OF VALUE AS OF APRIL 23, 2001
Frontier Market Value Method Data Multiple Estimate ------ ----------- ----------- ----------- MARKET EQUITY TO BOOK EQUITY $ 7,200,000 135.0% $ 9,720,000 MARKET EQUITY TO SALES $ 6,080,000 125.0% $ 7,600,000 MARKET EQUITY TO ADJUSTED EARNINGS Current $ 1,547,634 10.2 $15,723,961 Three Year Weighted Average $ 1,277,881 9.8 $12,574,349 Five Year Weighted Average $ 1,102,246 11.4 $12,609,697 MARKET EQUITY TO ADJUSTED CASH FLOW Current $ 1,747,634 7.4 $12,862,586 Three Year Weighted Average $ 1,496,214 7.7 $11,490,926 Five Year Weighted Average $ 1,330,913 8.3 $11,073,195 MEDIAN $12,032,638 ----------- Equity value, minority basis $12,032,638 Premium for Control of 35% 4,211,423 ----------- Equity value, freely-traded basis $16,244,061 Discount for risks associated with the thinly-traded market of 10% (1,624,406) ----------- Equity value, privately-held basis $14,619,655 =========== ROUNDED VALUE $14,620,000 ===========
ComStock Valuation Advisors, Inc. Exhibit D-1 FRONTIER ADJUSTERS OF AMERICA, INC. Guideline Companies Method Using Leveraged Ratios Market Equity to Book Equity
Market Recent Return on Equity Book Equity Book Guideline Company (MM's) (MM's) ME/BE Equity ----------------- ------ ------ ----- ------ ARTHUR J.GALLAGHER & CO $2,021.1 $ 301.0 671.5% 27.5% CHOICEPOINT, INC $2,142.1 $ 357.8 598.7% 16.8% CRAWFORD & CO $ 477.4 $ 217.8 219.2% 16.3% HALLMARK FINANCIAL SERVICES, INC $ 6.4 $ 12.2 52.6% 10.1% HILB ROGAL & HAMILTON CO $ 481.5 $ 88.2 545.8% 30.7% INSPIRE INSURANCE SOLUTIONS, INC $ 14.5 $ 75.5 19.3% (5.4%) INSURANCE MGMT SOLUTIONS GROUP $ 6.4 $ 32.9 19.4% (1.4%) KAYE GROUP, INC $ 110.5 $ 54.0 204.6% 18.3% MEADOWBROOK INSURANCE GROUP, INC $ 28.5 $ 102.7 27.8% 0.6% PROGRESSIVE CORP $7,039.7 $2,795.0 251.9% 1.8% ST. PAUL COS., INC $9,352.2 $7,047.0 132.7% 15.5% STIRLING COOKE BROWN HOLDINGS, LTD $ 9.6 $ 78.6 12.2% (11.0%) ------------------------------------------------------------------------------------------- 1st Quartile 25.7% 0.1% Median 168.6% 12.8% Average 229.6% 10.0% 3rd Quartile 325.3% 17.2% Frontier -------- Selected Ratio 168.6% 21.5% Risk Adjustment Factor 80.0% ------ Risk Adjusted Selected Ratio 135.0% ======
ComStock Valuation Advisors, Inc. Exhibit D-2 FRONTIER ADJUSTERS OF AMERICA, INC. Guideline Companies Method Using Leveraged Ratios Market Equity to Sales
Market Recent Net Equity Sales ME/ Profit Guideline Company (MM's) (MM's) Sales Margin ----------------- ------ ------ ----- ------ ARTHUR J.GALLAGHER & CO $2,021.1 $ 712.6 283.6% 11.6% CHOICEPOINT, INC $2,142.1 $ 558.7 383.4% 10.8% CRAWFORD & CO $ 477.4 $ 712.2 67.0% 5.0% HALLMARK FINANCIAL SERVICES, INC $ 6.4 $ 23.5 27.2% 5.2% HILB ROGAL & HAMILTON CO $ 481.5 $ 262.1 183.7% 10.3% INSPIRE INSURANCE SOLUTIONS, INC $ 14.5 $ 126.6 11.5% (3.2%) INSURANCE MGMT SOLUTIONS GROUP $ 6.4 $ 66.0 9.7% (0.7%) KAYE GROUP, INC $ 110.5 $ 75.3 146.8% 13.1% MEADOWBROOK INSURANCE GROUP, INC $ 28.5 $ 210.0 13.6% 0.3% PROGRESSIVE CORP $7,039.7 $6,610.4 106.5% 0.8% ST. PAUL COS., INC $9,352.2 $8,330.0 112.3% 13.1% STIRLING COOKE BROWN HOLDINGS, LTD $ 9.6 $ 51.1 18.8% (17.0%) --------------------------------------------------------------------------------------------- 1st Quartile 17.5% 0.1% Median 86.8% 5.1% Average 113.7% 4.1% 3rd Quartile 156.0% 11.0% Frontier -------- Selected Ratio 156.0% 25.5% Risk Adjustment Factor 80.0% ----- Risk Adjusted Selected Ratio 125.0% =====
ComStock Valuation Advisors, Inc. Exhibit D-3 FRONTIER ADJUSTERS OF AMERICA, INC. Guideline Companies Method Using Leveraged Ratios Market Equity to Recent Adjusted Earnings Recent Market Adjusted ME/ Equity Earnings Current Guideline Company (MM's) (MM's) Adj. Earn. ----------------- ------ ------ ---------- ARTHUR J.GALLAGHER & CO $2,021.1 $ 82.7 24.4 CHOICEPOINT, INC $2,142.1 $ 52.9 N/A CRAWFORD & CO $ 477.4 $ 35.6 13.4 HALLMARK FINANCIAL SERVICES, INC $ 6.4 $ 0.6 10.3 HILB ROGAL & HAMILTON CO $ 481.5 $ 22.1 21.8 INSPIRE INSURANCE SOLUTIONS, INC $ 14.5 $ (4.1) N/A INSURANCE MGMT SOLUTIONS GROUP $ 6.4 $ (0.5) N/A KAYE GROUP, INC $ 110.5 $ 9.2 12.0 MEADOWBROOK INSURANCE GROUP, INC $ 28.5 $ (2.5) N/A PROGRESSIVE CORP $7,039.7 $ 1.9 N/A ST. PAUL COS., INC $9,352.2 $1,031.0 9.1 STIRLING COOKE BROWN HOLDINGS, LTD $ 9.6 $ (8.7) N/A -------------------------------------------------------------------------------- 1st Quartile 10.7 Median 12.7 Average 15.2 3rd Quartile 19.7 Selected Ratio 12.7 Risk Adjustment Factor 80.0% ----- Risk Adjusted Selected Ratio 10.2 ===== ComStock Valuation Advisors, Inc. Exhibit D-4 FRONTIER ADJUSTERS OF AMERICA, INC. Guideline Companies Method Using Leveraged Ratios Market Equity to Historical Adjusted Earnings
3 Year 5 Year Wgt. Avg. ME/ Wgt. Avg. ME/ Market Adjusted 3 Year Adjusted 5 Year Equity Earnings Wgt. Avg. Earnings Wgt. Avg. Guideline Company (MM's) (MM's) Adj. Earn. (MM's) Adj. Earn. ----------------- ------ ------ ---------- ------ ---------- ARTHUR J.GALLAGHER & CO $2,021.1 $ 73.5 27.5 $ 66.8 30.2 CHOICEPOINT, INC $2,142.1 $ 44.8 N/A $ 39.2 N/A CRAWFORD & CO $ 477.4 $ 38.7 12.3 $ 41.5 11.5 HALLMARK FINANCIAL SERVICES, INC $ 6.4 $ 0.5 11.7 $ 0.4 14.3 HILB ROGAL & HAMILTON CO $ 481.5 $ 20.4 23.6 $ 18.3 26.3 INSPIRE INSURANCE SOLUTIONS, INC $ 14.5 $ (0.2) N/A $ 1.5 9.5 INSURANCE MGMT SOLUTIONS GROUP $ 6.4 $ 1.5 4.2 N/A N/A KAYE GROUP, INC $ 110.5 $ 8.3 13.3 $ 7.3 15.1 MEADOWBROOK INSURANCE GROUP, INC $ 28.5 $ (2.7) N/A $ 0.7 N/A PROGRESSIVE CORP $7,039.7 $ 174.4 N/A $ 243.9 28.9 ST. PAUL COS., INC $9,352.2 $ 862.9 10.8 $ 792.0 11.8 STIRLING COOKE BROWN HOLDINGS, LTD $ 9.6 $ (0.5) N/A $ 3.6 2.7 ------------------------------------------------------------------------------------------------------- 1st Quartile 11.3 11.5 Median 12.3 14.3 Average 14.8 16.7 3rd Quartile 18.4 26.3 Selected Ratio 12.3 14.3 Risk Adjustment Factor 80.0% 80.0% ----- ---- Risk Adjusted Selected Ratio 9.8 11.4 ===== ====
ComStock Valuation Advisors, Inc. Exhibit D-5 FRONTIER ADJUSTERS OF AMERICA, INC. Guideline Companies Method Using Leveraged Ratios Market Equity to Recent Adjusted Cash Flow Recent Market Adjusted ME/ Equity CF Current Guideline Company (MM's) (MM's) Adj. CF ----------------- ------ ------ ------- ARTHUR J.GALLAGHER & CO $2,021.1 $ 99.7 20.3 CHOICEPOINT, INC $2,142.1 $ 101.7 21.1 CRAWFORD & CO $ 477.4 $ 50.3 9.5 HALLMARK FINANCIAL SERVICES, INC $ 6.4 $ 1.0 6.7 HILB ROGAL & HAMILTON CO $ 481.5 $ 35.1 13.7 INSPIRE INSURANCE SOLUTIONS, INC $ 14.5 $ 4.3 3.4 INSURANCE MGMT SOLUTIONS GROUP $ 6.4 $ 4.9 1.3 KAYE GROUP, INC $ 110.5 $ 12.4 8.9 MEADOWBROOK INSURANCE GROUP, INC $ 28.5 $ 2.3 12.2 PROGRESSIVE CORP $7,039.7 $ 82.1 N/A ST. PAUL COS., INC $9,352.2 $1,140.0 8.2 STIRLING COOKE BROWN HOLDINGS, LTD $ 9.6 $ (6.2) N/A -------------------------------------------------------------------------------- 1st Quartile 7.1 Median 9.2 Average 10.5 3rd Quartile 13.3 Selected Ratio 9.2 Risk Adjustment Factor 80.0% ---- Risk Adjusted Selected Ratio 7.4 ==== ComStock Valuation Advisors, Inc. Exhibit D-6 FRONTIER ADJUSTERS OF AMERICA, INC. Guideline Companies Method Using Leveraged Ratios Market Equity to Historical Adjusted Cash Flow
3 Year 5 Year Wgt. Avg. ME/ Wgt. Avg. ME/ Market Adjusted 3 Year Adjusted 5 Year Equity CF Wgt. Avg. CF Wgt. Avg. Guideline Company (MM's) (MM's) Unlev. CF (MM's) Unlev. CF ----------------- ------ ------ --------- ------ --------- ARTHUR J.GALLAGHER & CO $2,021.1 $ 89.1 22.7 $ 81.1 24.9 CHOICEPOINT, INC $2,142.1 $ 87.0 24.6 $ 76.8 27.9 CRAWFORD & CO $ 477.4 $ 54.2 8.8 $ 57.0 8.4 HALLMARK FINANCIAL SERVICES, INC $ 6.4 $ 0.9 7.3 $ 0.8 8.1 HILB ROGAL & HAMILTON CO $ 481.5 $ 33.9 14.2 $ 31.3 15.4 INSPIRE INSURANCE SOLUTIONS, INC $ 14.5 $ 8.1 1.8 $ 8.6 1.7 INSURANCE MGMT SOLUTIONS GROUP $ 6.4 $ 6.8 0.9 N/A N/A KAYE GROUP, INC $ 110.5 $ 11.3 9.8 $ 10.2 10.9 MEADOWBROOK INSURANCE GROUP, INC $ 28.5 $ 1.8 15.7 $ 4.8 6.0 PROGRESSIVE CORP $7,039.7 $ 247.8 28.4 $ 307.5 22.9 ST. PAUL COS., INC $9,352.2 $ 982.9 9.5 $ 903.1 10.4 STIRLING COOKE BROWN HOLDINGS, LTD $ 9.6 $ 2.0 4.8 $ 6.0 1.6 ---------------------------------------------------------------------------------------------------- 1st Quartile 6.6 7.0 Median 9.6 10.4 Average 12.4 12.6 3rd Quartile 17.4 19.1 Selected Ratio 9.6 10.4 Risk Adjustment Factor 80.0% 80.0% ------ ----- Risk Adjusted Selected Ratio 7.7 8.3 ====== =====
ComStock Valuation Advisors, Inc. Exhibit D-7 FRONTIER ADJUSTERS OF AMERICA, INC. Mergers & Acquisitions Method Summary of Value as of April 23, 2001
Revenue Lev. Income Cash Flow Method Method Method Average ------ ------ ------ ------- Frontier Adjusters of America, Inc. Financial Data $ 6,080,000 $ 1,547,634 $ 1,747,634 Multiple selected from market data 0.9 19.1 9.3 Risk adjustment factor 20% (0.2) (3.8) (1.9) ----------- ----------- ----------- Multiple applied to Frontier Adjusters of America, Inc. 0.7 15.3 7.5 ----------- ----------- ----------- Equity value, privately-held control basis $ 4,169,143 $23,628,000 $13,038,480 ROUNDED VALUE $ 4,170,000 $23,630,000 $13,040,000 $13,610,000 =========== =========== =========== ===========
ComStock Valuation Advisors, Inc. Exhibit E-1 FRONTIER ADJUSTERS OF AMERICA, INC. Mergers & Acquisitions Method Market Data
Leveraged Cash Book Equity Revenue Income Flow Value Price Acquired Company Date ($000's) ($000's) ($000's) ($000's) ($000's) ---------------- ---- -------- -------- -------- -------- -------- Premier Express Claims, Inc. 6/28/2000 $4,133 $(159) $(320) $79 $1,330 Prime Capital Services, Inc. 4/5/1999 19,418 295 802 285 8,800 American Phoenix Corporation 3/3/1999 72,900 146 5,900 (16,000) 94,600 MedCap Medical Cost Management, Inc. 2/15/1999 4,667 524 1,303 1,600 10,000 Subro-Audit, Inc. 1/25/1999 7,067 504 1,199 2,500 32,900 M&N Risk Management, Inc. 12/31/1998 7,000 583 801 (473) 6,000 Arrow Claims Management, Inc. 12/1/1998 16,267 513 273 47 13,500 Kizorek, Inc. 9/1/1998 14,500 1,200 1,400 3,600 9,000 Coverdell & Company, Inc. 4/2/1998 14,000 (194) (243) 1,900 16,600 First quartile multiples Median multiples Average multiples Third quartile multiples =================================================================================== EQUITY VALUATION MULTIPLES -------------------------------------------- Acquired Company Revenue Lev. Inc. Cash Flow Book Value ---------------- ------- --------- --------- ---------- Premier Express Claims, Inc. 0.3 N/A N/A 16.8 Prime Capital Services, Inc. 0.5 29.9 11.0 N/A American Phoenix Corporation 1.3 N/A 16.0 N/A MedCap Medical Cost Management, Inc. 2.1 19.1 7.7 6.3 Subro-Audit, Inc. 4.7 N/A 27.4 13.2 M&N Risk Management, Inc. 0.9 10.3 7.5 N/A Arrow Claims Management, Inc. 0.8 26.3 N/A N/A Kizorek, Inc. 0.6 7.5 6.4 2.5 Coverdell & Company, Inc. 1.2 N/A N/A 8.7 -------------------------------------------- First quartile multiples 0.6 10.3 7.5 6.3 Median multiples 0.9 19.1 9.3 8.7 Average multiples 1.4 18.6 12.7 9.5 Third quartile multiples 1.3 26.3 14.8 13.2 ===================================================================================
ComStock Valuation Advisors, Inc. Exhibit E-2 FRONTIER ADJUSTERS OF AMERICA, INC. Comparative Ratio Analysis Liquidity Ratios Current Quick Receivable Guideline Company Ratio Ratio Turnover ----------------- ----- ----- -------- ARTHUR J.GALLAGHER & CO 1.06 0.89 2.06 CHOICEPOINT, INC 1.64 1.43 4.70 CRAWFORD & CO 1.70 1.59 3.01 HALLMARK FINANCIAL SERVICES, INC 3.91 3.91 0.77 HILB ROGAL & HAMILTON CO 0.87 0.83 3.19 INSPIRE INSURANCE SOLUTIONS, INC 2.07 1.59 4.52 INSURANCE MGMT SOLUTIONS GROUP 2.00 1.76 9.78 KAYE GROUP, INC 1.28 1.24 2.05 MEADOWBROOK INSURANCE GROUP, INC N/A N/A 0.96 PROGRESSIVE CORP 3.14 3.14 3.09 ST. PAUL COS., INC 7.23 7.21 1.00 STIRLING COOKE BROWN HOLDINGS, LTD 1.10 1.10 0.06 Frontier Adjusters of America, Inc. 9.40 8.33 4.03 COMPARABLE MEDIAN 1.70 1.59 2.54 ----- ----- ----- RANKING BY RATIO 1 1 4 NUMBER OF OBSERVATIONS 12 12 13 ----- ----- ----- ComStock Valuation Advisors, Inc. Exhibit F-1 FRONTIER ADJUSTERS OF AMERICA, INC. Comparative Ratio Analysis Activity Ratios
Asset Sales to Sales to Sales to Sales to Guideline Company Turnover Net PP&E Equity W.C. T. Assets ----------------- -------- -------- ------ ---- --------- ARTHUR J.GALLAGHER & CO 0.79 17.50 2.37 19.76 0.76 CHOICEPOINT, INC 0.88 8.27 1.56 8.17 0.80 CRAWFORD & CO 1.48 16.64 3.27 6.54 1.55 HALLMARK FINANCIAL SERVICES, INC 0.33 N/A 1.93 0.66 0.31 HILB ROGAL & HAMILTON CO 0.78 15.89 2.97 (13.43) 0.74 INSPIRE INSURANCE SOLUTIONS, INC 1.06 16.10 1.68 5.38 1.29 INSURANCE MGMT SOLUTIONS GROUP 1.66 7.91 2.00 10.07 1.64 KAYE GROUP, INC 0.51 17.40 1.39 4.48 0.50 MEADOWBROOK INSURANCE GROUP, INC 0.36 N/a 2.05 0.82 0.33 PROGRESSIVE CORP 0.65 13.32 2.37 4.04 0.63 ST. PAUL COS., INC 0.21 16.17 1.18 0.92 0.20 STIRLING COOKE BROWN HOLDINGS, LTD 0.05 N/A 0.65 0.56 0.05 Frontier Adjusters of America, Inc. 0.66 3.86 0.99 1.77 0.93 COMPARABLE MEDIAN 0.72 16.10 1.97 4.26 0.69 ----- ----- ----- ----- ----- RANKING BY RATIO 7 10 12 8 4 NUMBER OF OBSERVATIONS 13 10 13 13 13 ----- ----- ----- ----- -----
ComStock Valuation Advisors, Inc. Exhibit F-2 FRONTIER ADJUSTERS OF AMERICA, INC. Comparative Ratio Analysis Profitability Ratios Operating 5 Year Net 5 Year Profit Average Profit Average Guideline Company Margin O.P.M. Margin N.P.M. ----------------- ------ ------ ------ ------ ARTHUR J.GALLAGHER & CO 19.77 18.39 16.11 11.73 CHOICEPOINT, INC 29.75 21.63 11.56 8.54 CRAWFORD & CO 12.00 12.91 (3.13) 4.02 HALLMARK FINANCIAL SERVICES, INC 4.93 8.05 (1.53) 0.77 HILB ROGAL & HAMILTON CO 25.89 22.52 6.40 7.56 INSPIRE INSURANCE SOLUTIONS, INC (26.31) 6.14 (72.15) (14.72) INSURANCE MGMT SOLUTIONS GROUP 4.17 14.74 (3.44) 3.98 KAYE GROUP, INC 22.97 19.24 12.40 9.53 MEADOWBROOK INSURANCE GROUP, INC 2.17 8.16 1.15 4.38 PROGRESSIVE CORP 6.93 12.13 3.36 6.91 ST. PAUL COS., INC 17.63 15.18 11.32 8.95 STIRLING COOKE BROWN HOLDINGS, LTD (11.75) 15.78 (17.09) 7.01 Frontier Adjusters of America, Inc. 33.55 26.58 19.81 13.72 COMPARABLE MEDIAN 9.47 14.96 2.26 6.96 ------ ----- ------ ---- RANKING BY RATIO 1 1 1 1 NUMBER OF OBSERVATIONS 13 13 13 13 ------ ----- ------ ---- ComStock Valuation Advisors, Inc. Exhibit F-3 FRONTIER ADJUSTERS OF AMERICA, INC Comparative Ratio Analysis Performance Ratios
Return 5 Year Return 5 Year Return 5 Year on Average on Average on Average Guideline Company Assets R.O.A. Equity R.O.E. Investment R.O.I. ----------------- ------ ------ ------ ------ ---------- ------ ARTHUR J.GALLAGHER & CO 8.82 8.02 27.49 29.99 27.49 29.93 CHOICEPOINT, INC 5.03 6.96 9.85 17.20 6.53 10.30 CRAWFORD & CO 5.53 8.55 11.64 15.99 9.43 14.84 HALLMARK FINANCIAL SERVICES, INC 0.81 0.51 5.11 2.59 2.52 2.17 HILB ROGAL & HAMILTON CO 6.26 6.73 25.08 26.14 11.56 13.60 INSPIRE INSURANCE SOLUTIONS, INC (25.88) (7.86) (33.56) (24.85) (33.56) (24.86) INSURANCE MGMT SOLUTIONS GROUP (1.24) 8.49 (1.51) 514.61 (1.51) 15.84 KAYE GROUP, INC 6.04 4.10 17.01 15.00 16.55 12.99 MEADOWBROOK INSURANCE GROUP, INC (0.39) 1.36 (2.39) 2.94 (1.59) 3.22 PROGRESSIVE CORP 0.02 3.75 0.07 13.18 0.05 9.74 ST. PAUL COS., INC 2.47 2.18 14.71 11.65 11.41 9.32 STIRLING COOKE BROWN HOLDINGS, LTD (1.30) 1.59 (18.49) 8.04 (18.49) 5.76 Frontier Adjusters of America, Inc. 18.45 10.81 19.68 13.73 19.68 13.68 COMPARABLE MEDIAN 1.64 3.93 7.48 14.09 4.53 10.02 ------ ----- ------ ------ ------ ------ RANKING BY RATIO 1 1 3 7 2 4 NUMBER OF OBSERVATIONS 13 13 13 13 13 13 -------------------------------------------------------------------------------------------------------
ComStock Valuation Advisors, Inc. Exhibit F-4 FRONTIER ADJUSTERS OF AMERICA, INC. COMPARATIVE RATIO ANALYSIS GROWTH RATES-INCOME STATEMENT
Latest Year 5 Year Latest Year 5 Year Latest Year 5 Year Sales Compound Op. Profit Compound Net Income Compound Guideline Company Growth Sales Gr. Growth O.P. Gr. Growth N.I. Gr. ----------------- ------ --------- ------ -------- ------ -------- ARTHUR J.GALLAGHER & CO. 17.6 11.6 18.9 14.5 22.1 14.8 CHOICEPOINT, INC. 29.9 11.2 33.8 21.0 (10.5) 18.8 CRAWFORD & CO. 1.5 3.2 (16.0) (0.8) (35.4) (6.8) HALLMARK FINANCIAL SERVICES, INC. 22.5 11.3 5.4 6.3 (20.8) (13.1) HILB ROGAL & HAMILTON CO. 15.4 12.1 15.6 18.9 13.6 13.3 INSPIRE INSURANCE SOLUTIONS, INC. (9.9) N/A (139.2) N/A 28.7 N/A INSURANCE MGMT SOLUTIONS GROUP (7.5) N/A (103.2) N/A (115.6) N/A KAYE GROUP, INC. 9.5 6.3 22.2 11.3 22.4 12.1 MEADOWBROOK INSURANCE GROUP, INC. 20.0 18.5 (97.6) N/A (68.7) N/A PROGRESSIVE CORP. 8.0 17.1 (91.3) (36.3) (99.4) (62.3) ST. PAUL COS., INC. 10.1 9.0 33.5 17.4 33.1 14.8 STIRLING COOKE BROWN HOLDINGS, LTD. (24.7) 21.8 (230.1) N/A 126.8 N/A Frontier Adjusters of America, Inc. (2.9) 1.5 27.1 6.9 27.4 6.6 COMPARABLE MEDIAN 9.8 11.4 (5.3) 12.9 1.5 12.7 ------ ------ ------ ------ ------ ------ RANKING BY RATIO 10 11 3 6 4 6 NUMBER OF OBSERVATIONS 13 11 13 9 13 9 ------ ------ ------ ------ ------ ------
ComStock Valuation Advisors, Inc. Exhibit F-5 FRONTIER ADJUSTERS OF AMERICA, INC. COMPARATIVE RATIO ANALYSIS GROWTH RATES-BALANCE SHEET
Latest Year 5 Year Latest Year 5 Year Asset Compound Equity Compound Guideline Company Growth Asset Gr. Growth Equity Gr. ----------------- ------ --------- ------ ---------- ARTHUR J.GALLAGHER & CO. 6.1 13.6 24.1 20.6 CHOICEPOINT, INC. 31.5 28.4 76.3 27.9 CRAWFORD & CO. (3.3) 4.5 (13.0) (0.3) HALLMARK FINANCIAL SERVICES, INC. 26.4 5.0 4.0 3.3 HILB ROGAL & HAMILTON CO. 11.1 16.7 23.9 9.3 INSPIRE INSURANCE SOLUTIONS, INC. (25.9) N/A (27.7) N/A INSURANCE MGMT SOLUTIONS GROUP 1.6 N/A 0.1 N/A KAYE GROUP, INC. 1.9 (2.7) 14.3 18.7 MEADOWBROOK INSURANCE GROUP, INC. 14.4 21.2 2.2 2.2 PROGRESSIVE CORP. 8.1 14.4 1.5 13.6 ST. PAUL COS., INC. 7.2 16.2 8.9 13.6 STIRLING COOKE BROWN HOLDINGS, LTD. 10.7 61.1 (7.3) 62.0 Frontier Adjusters of America, Inc. 12.9 2.0 14.3 2.9 COMPARABLE MEDIAN 7.6 15.3 3.1 13.6 ------ ------ ------ ------ RANKING BY RATIO 4 10 5 9 NUMBER OF OBSERVATIONS 13 11 13 11 ------ ------ ------ ------
ComStock Valuation Advisors, Inc. Exhibit F-6 FRONTIER ADJUSTERS OF AMERICA, INC. STOCK PRICE HISTORY
Average Weekly Volume --------------------- Date Close Volume % - 1 Yr. % - 5 Yr. % of O/S ---- ----- ------ --------- --------- -------- 23-Apr-01 $1.2000 800 6.1% 3.1% 0.0089% 20-Apr-01 $1.2000 0 0.0% 0.0% 0.0000% 19-Apr-01 $1.2000 2,500 19.2% 9.7% 0.0279% 18-Apr-01 $1.2500 3,500 26.9% 13.5% 0.0391% 17-Apr-01 $1.1000 3,600 27.6% 13.9% 0.0402% 16-Apr-01 $1.1000 100 0.8% 0.4% 0.0011% 13-Apr-01 $1.1000 2,900 22.3% 11.2% 0.0324% 12-Apr-01 $1.1000 2,900 22.3% 11.2% 0.0324% 11-Apr-01 $1.2500 100 0.8% 0.4% 0.0011% 10-Apr-01 $1.1500 10,000 76.8% 38.7% 0.1116% 9-Apr-01 $1.2500 300 2.3% 1.2% 0.0033% 5-Apr-01 $1.3000 2,600 20.0% 10.1% 0.0290% 4-Apr-01 $1.1000 1,700 13.1% 6.6% 0.0190% 3-Apr-01 $1.1500 2,000 15.4% 7.7% 0.0223% 2-Apr-01 $1.2500 500 3.8% 1.9% 0.0056% 30-Mar-01 $1.3900 100 0.8% 0.4% 0.0011% 27-Mar-01 $1.3000 3,100 23.8% 12.0% 0.0346% 20 DAY STATISTICS ----------------- 26-Mar-01 $1.4500 1,100 8.4% 4.3% 0.0123% Avg. $1.2170 23-Mar-01 $1.3000 1,000 7.7% 3.9% 0.0112% High $1.4500 21-Mar-01 $1.2000 500 3.8% 1.9% 0.0056% Low $1.1000 ---------------------------------------------------------------------------------------------- 20-Mar-01 $1.3000 200 1.5% 0.8% 0.0022% 19-Mar-01 $1.3000 2,300 17.7% 8.9% 0.0257% 16-Mar-01 $1.4000 1,100 8.4% 4.3% 0.0123% 15-Mar-01 $1.4500 8,100 62.2% 31.3% 0.0904% 14-Mar-01 $1.4000 2,500 19.2% 9.7% 0.0279% 9-Mar-01 $1.3500 3,000 23.0% 11.6% 0.0335% 7-Mar-01 $1.4000 1,200 9.2% 4.6% 0.0134% 6-Mar-01 $1.4000 1,900 14.6% 7.3% 0.0212% 5-Mar-01 $1.3500 1,400 10.8% 5.4% 0.0156% 27-Feb-01 $1.2700 300 2.3% 1.2% 0.0033% 26-Feb-01 $1.2000 7,700 59.1% 29.8% 0.0860% 23-Feb-01 $1.4500 7,000 53.8% 27.1% 0.0781% 21-Feb-01 $1.5500 2,000 15.4% 7.7% 0.0223% 20-Feb-01 $1.6500 2,100 16.1% 8.1% 0.0234% 16-Feb-01 $1.5500 4,000 30.7% 15.5% 0.0447% 15-Feb-01 $1.5500 100 0.8% 0.4% 0.0011% 14-Feb-01 $1.5500 600 4.6% 2.3% 0.0067% 12-Feb-01 $1.5600 6,300 48.4% 24.4% 0.0703% 9-Feb-01 $1.5500 1,200 9.2% 4.6% 0.0134% 7-Feb-01 $1.5500 400 3.1% 1.5% 0.0045% 6-Feb-01 $1.4500 1,000 7.7% 3.9% 0.0112% 5-Feb-01 $1.6500 2,000 15.4% 7.7% 0.0223% 2-Feb-01 $1.7400 1,600 12.3% 6.2% 0.0179% 1-Feb-01 $1.6000 1,000 7.7% 3.9% 0.0112% 31-Jan-01 $1.3500 300 2.3% 1.2% 0.0033% 30-Jan-01 $1.3500 200 1.5% 0.8% 0.0022% 26-Jan-01 $1.3125 500 3.8% 1.9% 0.0056% 24-Jan-01 $1.4375 2,300 17.7% 8.9% 0.0257% 23-Jan-01 $1.5625 1,200 9.2% 4.6% 0.0134% 22-Jan-01 $1.6875 1,500 11.5% 5.8% 0.0167% 18-Jan-01 $1.6250 700 5.4% 2.7% 0.0078% 12-Jan-01 $1.3750 1,300 10.0% 5.0% 0.0145% 11-Jan-01 $1.1875 2,300 17.7% 8.9% 0.0257% 9-Jan-01 $1.1250 1,000 7.7% 3.9% 0.0112% 5-Jan-01 $1.1250 6,500 49.9% 25.1% 0.0726% 3-Jan-01 $1.1875 200 1.5% 0.8% 0.0022% 2-Jan-01 $1.0625 1,800 13.8% 7.0% 0.0201% 29-Dec-00 $1.2500 3,700 28.4% 14.3% 0.0413% 28-Dec-00 $1.1250 4,900 37.6% 19.0% 0.0547% 27-Dec-00 $1.1250 5,600 43.0% 21.7% 0.0625%
ComStock Valuation Advisors, Inc. Exhibit G-1 FRONTIER ADJUSTERS OF AMERICA, INC. STOCK PRICE HISTORY Average Weekly Volume --------------------- Date Close Volume % - 1 Yr. % - 5 Yr. % of O/S ---- ----- ------ --------- --------- -------- 26-Dec-00 $1.1250 700 5.4% 2.7% 0.0078% 22-Dec-00 $1.1250 2,100 16.1% 8.1% 0.0234% 20-Dec-00 $1.2500 2,800 21.5% 10.8% 0.0313% 19-Dec-00 $1.2500 1,000 7.7% 3.9% 0.0112% 18-Dec-00 $1.3750 1,800 13.8% 7.0% 0.0201% 15-Dec-00 $1.3750 3,000 23.0% 11.6% 0.0335% 13-Dec-00 $1.1875 900 6.9% 3.5% 0.0100% 12-Dec-00 $1.0625 4,000 30.7% 15.5% 0.0447% 11-Dec-00 $1.2500 200 1.5% 0.8% 0.0022% 8-Dec-00 $1.2500 3,000 23.0% 11.6% 0.0335% 7-Dec-00 $1.3750 2,500 19.2% 9.7% 0.0279% 4-Dec-00 $1.6250 1,000 7.7% 3.9% 0.0112% 1-Dec-00 $1.8750 300 2.3% 1.2% 0.0033% 30-Nov-00 $1.6250 4,100 31.5% 15.9% 0.0458% 29-Nov-00 $1.8125 400 3.1% 1.5% 0.0045% 28-Nov-00 $1.8750 14,700 112.9% 56.9% 0.1641% 27-Nov-00 $1.5000 9,000 69.1% 34.8% 0.1005% 22-Nov-00 $1.2500 3,900 30.0% 15.1% 0.0435% 21-Nov-00 $1.1250 8,200 63.0% 31.7% 0.0915% 20-Nov-00 $1.1250 4,600 35.3% 17.8% 0.0514% 17-Nov-00 $1.6250 1,100 8.4% 4.3% 0.0123% 16-Nov-00 $1.6250 600 4.6% 2.3% 0.0067% 13-Nov-00 $1.7500 200 1.5% 0.8% 0.0022% 10-Nov-00 $1.6250 1,700 13.1% 6.6% 0.0190% 7-Nov-00 $1.8750 1,100 8.4% 4.3% 0.0123% 6-Nov-00 $1.7500 7,700 59.1% 29.8% 0.0860% 3-Nov-00 $1.5625 100 0.8% 0.4% 0.0011% 2-Nov-00 $1.5000 1,300 10.0% 5.0% 0.0145% 30-Oct-00 $1.5000 2,100 16.1% 8.1% 0.0234% 27-Oct-00 $1.5000 9,600 73.7% 37.1% 0.1072% 26-Oct-00 $1.7500 4,300 33.0% 16.6% 0.0480% 25-Oct-00 $1.7500 2,000 15.4% 7.7% 0.0223% 24-Oct-00 $1.9375 3,000 23.0% 11.6% 0.0335% 23-Oct-00 $2.0000 2,400 18.4% 9.3% 0.0268% 19-Oct-00 $2.1875 400 3.1% 1.5% 0.0045% 18-Oct-00 $2.1250 4,900 37.6% 19.0% 0.0547% 16-Oct-00 $2.0000 7,300 56.1% 28.2% 0.0815% 13-Oct-00 $2.7500 1,500 11.5% 5.8% 0.0167% 11-Oct-00 $2.7500 2,000 15.4% 7.7% 0.0223% 10-Oct-00 $2.7500 500 3.8% 1.9% 0.0056% 6-Oct-00 $2.8750 100 0.8% 0.4% 0.0011% 5-Oct-00 $3.0000 1,000 7.7% 3.9% 0.0112% 4-Oct-00 $2.8750 1,000 7.7% 3.9% 0.0112% 3-Oct-00 $2.7500 1,200 9.2% 4.6% 0.0134% 29-Sep-00 $2.5000 300 2.3% 1.2% 0.0033% 27-Sep-00 $2.6250 2,200 16.9% 8.5% 0.0246% 25-Sep-00 $2.8750 2,700 20.7% 10.4% 0.0301% 22-Sep-00 $2.8750 3,000 23.0% 11.6% 0.0335% 21-Sep-00 $2.9375 100 0.8% 0.4% 0.0011% 20-Sep-00 $3.0000 6,300 48.4% 24.4% 0.0703% 19-Sep-00 $3.2500 1,000 7.7% 3.9% 0.0112% 18-Sep-00 $3.1250 1,000 7.7% 3.9% 0.0112% 14-Sep-00 $3.2500 2,600 20.0% 10.1% 0.0290% 13-Sep-00 $3.1250 2,000 15.4% 7.7% 0.0223% 12-Sep-00 $3.3750 5,300 40.7% 20.5% 0.0592% 11-Sep-00 $3.5000 6,500 49.9% 25.1% 0.0726% 8-Sep-00 $3.3750 1,200 9.2% 4.6% 0.0134% ComStock Valuation Advisors, Inc. Exhibit G-2 FRONTIER ADJUSTERS OF AMERICA, INC. STOCK PRICE HISTORY Average Weekly Volume --------------------- Date Close Volume % - 1 Yr. % - 5 Yr. % of O/S ---- ----- ------ --------- --------- -------- 6-Sep-00 $3.5000 1,500 11.5% 5.8% 0.0167% 5-Sep-00 $3.7500 600 4.6% 2.3% 0.0067% 1-Sep-00 $3.7500 1,000 7.7% 3.9% 0.0112% 31-Aug-00 $3.7500 400 3.1% 1.5% 0.0045% 30-Aug-00 $3.5625 1,000 7.7% 3.9% 0.0112% 28-Aug-00 $3.8125 200 1.5% 0.8% 0.0022% 25-Aug-00 $3.6875 1,300 10.0% 5.0% 0.0145% 24-Aug-00 $3.6875 1,500 11.5% 5.8% 0.0167% 23-Aug-00 $3.8125 800 6.1% 3.1% 0.0089% 22-Aug-00 $3.5625 500 3.8% 1.9% 0.0056% 21-Aug-00 $3.6875 4,500 34.6% 17.4% 0.0502% 18-Aug-00 $4.0000 600 4.6% 2.3% 0.0067% 17-Aug-00 $4.0000 500 3.8% 1.9% 0.0056% 16-Aug-00 $4.0000 2,000 15.4% 7.7% 0.0223% 15-Aug-00 $3.9375 2,200 16.9% 8.5% 0.0246% 14-Aug-00 $3.8750 600 4.6% 2.3% 0.0067% 11-Aug-00 $3.7500 1,400 10.8% 5.4% 0.0156% 10-Aug-00 $3.7500 800 6.1% 3.1% 0.0089% 9-Aug-00 $3.6250 3,100 23.8% 12.0% 0.0346% 8-Aug-00 $3.6250 2,800 21.5% 10.8% 0.0313% 7-Aug-00 $3.6875 1,000 7.7% 3.9% 0.0112% 4-Aug-00 $3.5625 1,600 12.3% 6.2% 0.0179% 3-Aug-00 $3.5000 600 4.6% 2.3% 0.0067% 2-Aug-00 $3.5000 800 6.1% 3.1% 0.0089% 1-Aug-00 $3.5000 1,100 8.4% 4.3% 0.0123% 31-Jul-00 $3.5000 1,800 13.8% 7.0% 0.0201% 28-Jul-00 $3.5000 2,600 20.0% 10.1% 0.0290% 27-Jul-00 $3.3750 5,200 39.9% 20.1% 0.0580% 26-Jul-00 $3.3750 1,100 8.4% 4.3% 0.0123% 25-Jul-00 $3.5000 3,900 30.0% 15.1% 0.0435% 24-Jul-00 $3.5000 1,000 7.7% 3.9% 0.0112% 21-Jul-00 $3.5625 100 0.8% 0.4% 0.0011% 20-Jul-00 $3.5000 5,600 43.0% 21.7% 0.0625% 19-Jul-00 $3.5000 500 3.8% 1.9% 0.0056% 18-Jul-00 $3.5000 600 4.6% 2.3% 0.0067% 17-Jul-00 $3.3750 2,600 20.0% 10.1% 0.0290% 14-Jul-00 $3.2500 4,800 36.9% 18.6% 0.0536% 13-Jul-00 $3.5000 6,400 49.2% 24.8% 0.0714% 12-Jul-00 $4.0000 700 5.4% 2.7% 0.0078% 11-Jul-00 $4.0000 1,300 10.0% 5.0% 0.0145% 10-Jul-00 $3.8750 2,500 19.2% 9.7% 0.0279% 7-Jul-00 $3.8750 5,600 43.0% 21.7% 0.0625% 6-Jul-00 $4.0000 4,400 33.8% 17.0% 0.0491% 5-Jul-00 $3.8750 2,300 17.7% 8.9% 0.0257% 3-Jul-00 $3.8750 1,200 9.2% 4.6% 0.0134% 30-Jun-00 $3.6875 6,000 46.1% 23.2% 0.0670% 29-Jun-00 $3.9375 2,500 19.2% 9.7% 0.0279% 28-Jun-00 $4.0000 1,900 14.6% 7.3% 0.0212% 27-Jun-00 $4.0000 1,600 12.3% 6.2% 0.0179% 26-Jun-00 $3.9375 900 6.9% 3.5% 0.0100% 23-Jun-00 $3.7500 6,100 46.8% 23.6% 0.0681% 22-Jun-00 $3.8125 2,900 22.3% 11.2% 0.0324% 21-Jun-00 $4.0000 2,700 20.7% 10.4% 0.0301% 20-Jun-00 $4.0000 8,700 66.8% 33.7% 0.0971% 19-Jun-00 $4.0000 2,600 20.0% 10.1% 0.0290% 16-Jun-00 $4.0000 2,300 17.7% 8.9% 0.0257% 15-Jun-00 $4.0000 4,900 37.6% 19.0% 0.0547% ComStock Valuation Advisors, Inc. Exhibit G-3 FRONTIER ADJUSTERS OF AMERICA, INC. STOCK PRICE HISTORY Average Weekly Volume --------------------- Date Close Volume % - 1 Yr. % - 5 Yr. % of O/S ---- ----- ------ --------- --------- -------- 14-Jun-00 $4.0000 900 6.9% 3.5% 0.0100% 13-Jun-00 $4.0000 7,000 53.8% 27.1% 0.0781% 12-Jun-00 $3.9375 2,900 22.3% 11.2% 0.0324% 9-Jun-00 $3.9375 6,100 46.8% 23.6% 0.0681% 8-Jun-00 $3.8750 200 1.5% 0.8% 0.0022% 7-Jun-00 $3.8750 1,000 7.7% 3.9% 0.0112% 6-Jun-00 $3.8750 2,900 22.3% 11.2% 0.0324% 5-Jun-00 $3.9375 1,000 7.7% 3.9% 0.0112% 2-Jun-00 $3.9375 2,100 16.1% 8.1% 0.0234% 31-May-00 $3.9375 6,200 47.6% 24.0% 0.0692% 30-May-00 $3.8750 8,600 66.0% 33.3% 0.0960% 26-May-00 $3.7500 1,000 7.7% 3.9% 0.0112% 25-May-00 $3.8125 2,900 22.3% 11.2% 0.0324% 24-May-00 $3.7500 2,400 18.4% 9.3% 0.0268% 22-May-00 $3.8125 2,800 21.5% 10.8% 0.0313% 19-May-00 $3.7500 400 3.1% 1.5% 0.0045% 18-May-00 $3.7500 1,100 8.4% 4.3% 0.0123% 17-May-00 $3.7500 500 3.8% 1.9% 0.0056% 16-May-00 $3.6875 1,500 11.5% 5.8% 0.0167% 15-May-00 $3.8750 2,800 21.5% 10.8% 0.0313% 12-May-00 $3.8750 600 4.6% 2.3% 0.0067% 11-May-00 $3.8750 7,000 53.8% 27.1% 0.0781% 10-May-00 $3.8750 5,500 42.2% 21.3% 0.0614% 9-May-00 $3.6250 4,100 31.5% 15.9% 0.0458% 8-May-00 $3.8125 5,600 43.0% 21.7% 0.0625% 5-May-00 $3.9375 5,000 38.4% 19.3% 0.0558% 4-May-00 $3.8750 1,800 13.8% 7.0% 0.0201% 3-May-00 $3.8750 8,200 63.0% 31.7% 0.0915% 2-May-00 $3.5000 1,800 13.8% 7.0% 0.0201% 1-May-00 $3.3750 3,600 27.6% 13.9% 0.0402% 28-Apr-00 $3.2500 3,100 23.8% 12.0% 0.0346% 27-Apr-00 $3.2500 2,600 20.0% 10.1% 0.0290% 26-Apr-00 $3.3750 6,300 48.4% 24.4% 0.0703% 25-Apr-00 $3.5000 3,900 30.0% 15.1% 0.0435% 24-Apr-00 $3.5000 1,500 11.5% 5.8% 0.0167% ------- High trading price (June & August 2000) $4.0000
Daily Weekly Daily Weekly % of Statistics Statistics Statistics Statistics Normal ---------- ---------- ---------- ---------- ------ Average for five year period 5,171 25,853 0.0577% 0.2886% N/A Median for five year period 2,700 13,500 0.0301% 0.1507% N/A Average for one year period 2,604 13,021 0.0291% 0.1454% 6.3029% Median for one year period 1,950 9,750 0.0218% 0.1088% 5.1368% Total shares outstanding 8,958,000 4/18/01
ComStock Valuation Advisors, Inc. Exhibit G-4