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SAM tw = Strategic Analysis Model that works

Financial Analysis Module - For Use With 3 Years Data

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TABLE OF CONTENTS

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Income Statements Input Sheet Activity Ratios

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Balance Sheets Input Sheet Leverage Ratios

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Year-to-Year Change Income Statement Profitability Ratios

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Common Size Income Statements Altman's Z-Score Analysis

ALL Financial Analysis Worksheets

Liquidity Ratios Financial Analysis Summary

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SAM tw = Strategic Analysis Model that works

TABLE OF CONTENTS
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Sonic
Financial Analysis - Income Statement Data

Enter Name of this Company HERE:

Sonic

Input the following information from the Company's Income Statements. It is important to input data carefully. Confirm
subtotals and Net Income with Company's Income Statements. Any line on the Income Statement can and should be
overwritten to match the Company's Income Statement EXCEPT the headings that are indicated in BOLD type (do not alter
bold headings as these are used to calculate various ratios). Enter whole numbers without commas. Indicate "In Millions",
"In Thousands," Etc.

Special Note: Charts within the Financial Analysis module may be copied to other applications for presentation purposes. Use
thePaste-Special-Picture command to paste charts as fixed graphic objects. They will not be linked to the original data, so if
changesare made, make sure to recopy/paste the charts to your presentation.

Prior Period2 Prior Period1 Most Recent Period

Overwrite the title cells with actual years, quarters, etc...

In Thousands
1999 2000 2001

Net Sales $254,746 $276,192 $326,091

Total Revenues or Sales 254,746 276,192 326,091

Cost of Goods Sold 155,521 163,570 195,338
Operating Income 99,225 112,622 130,753
Selling Gen and Admin Expense 25,543 27,894 30,602
- - -
Earnings Before Interest, Taxes,
Depreciation & Amortization
(EBITDA) 73,682 84,728 100,151
Depreciation and Amortization 18,464 20,287 23,855
Earnings Before Interest & Taxes
(EBIT) 55,218 64,441 76,296
Net Interest Expense 5,047 6,234 6,628
Non Operating Income 6,512 6,212 7,586
Net Income Before Taxes (NIBT) 43,659 51,995 62,082
Income Tax Expense 16,263 19,368 23,126

Net Income After Taxes (NIAT) $27,396 $32,627 $38,956

Number of Shares Outstanding 18,582 26,372 26,885

Preferred Stock Dividends - - -

Net Earnings per Share (EPS) $1.47 $1.24 $1.45

Revenues Net Income After Taxes

$350,000 $40,000 $38,956
$326,091
$325,000
$300,000 $35,000
$276,192 $32,627
$275,000
$254,746 $30,000
$250,000 $27,396
$225,000 $25,000
$200,000
$175,000 $20,000
$150,000
$125,000
We currently anticipate that$15,000
we
$100,000 will retain all of our earnings to
$75,000 support our operations and$10,000
$50,000 develop our business.
$5,000
$25,000 Therefore, we do not pay any
$- cash dividends on our $-
1999 2000 2001
outstanding common stock. 1999 2000 2001
Future cash dividends, if any,
will be at the discretion of our
Discussion Board of Directors and will Discussion
depend upon, among other
things, future operations and
earnings, capital
requirements,general financial
conditions,contractual
restrictions, and other factors
that our Board may consider
We can see a steady growth in revenues relevant. (2005 Annual Report) NIAT has also grow steadily.
Go To Start Print Sonic
Financial Analysis - Balance Sheet Data

Input the following information from the Company's Balance Sheets. It is important to input data carefully. Confirm subtotals and
totals with Company's Financial Statements. Any line on the Balance Sheets can and should be overwritten to match the Company's
Balance Sheet EXCEPT the headings that are indicated in BOLD type (do not alter bold headings as these are used to calculate
various ratios). Enter whole numbers without commas.

Special Note: Charts within the Financial Analysis module may be copied to other applications for presentation purposes. Use the
Paste-Special-Picture command to paste charts as fixed graphic objects. They will not be linked to the original data, so if changes
are made, make sure to recopy/paste the charts to your presentation.

Prior Period2 Prior Period1 Most Recent Period

Overwrite the title cells with actual years, quarters, etc...

In Thousands
1999 2000 2001

Assets
Cash $1,612 $3,477 $6,971
Recievables 7,652 9,685 12,142

Marketable Securities 645 625 683

Inventories 1,460 1,677 2,030

Other Current Assets 1,207 1,413 1,703

Total Current Assets 12,576 16,877 23,529
Property Plant and Equipment 207,890 222,318 273,198
Invest and adv to Subs 5,795 7,220 7,148

Non current Assets and Intangibles 30,416 31,956 54,125

Total Fixed Assets 244,101 261,494 334,471

Total Assets 256,677 278,371 358,000

Liabilities and Stockholder's Equity

Liabilities

Accounts Payable 5,104 7,455 8,052

Current LT Debt 838 652 1,083
Accrued Expenses 13,564 14,363 16,709

Other Current Liabilities 813 778 1,020

Total Current Liabilities 20,319 23,248 26,864

Long Term Debt 72,331 83,860 108,972
Def Charges/Cap Lease/Other Long Liab 14,272 16,000 21,445
Total Liabilities 106,922 123,108 157,281

Stockholder's Equity

Common Stock 207 313 319

Capital Surplus 67,212 69,786 78,427

Retained Earnings 116,851 149,478 188,434

Treasury Stock (34,515) (64,314) (66,461)

Total Stockholder's Equity 149,755 155,263 200,719

Total Liabilities &

Stockholder's Equity $256,677 $278,371 $358,000

Working Capi tal

(Current Assets
- Current Liabilities) $(7,743) $(6,371) $(3,335)

Discussion

Check Assets = Liabilities + Equity --> OK OK OK OK

- - - -
Go To Start Print
Sonic
Financial Analysis

Income Statement - Year-to-Year Percentage Changes

Three-Yr Average Increase/(Decreas Increase/(Decreas Increase/(Decreas

Percentage Percentage Percentage e) to 1999 e) 1999 to 2000 e) 2000 to 2001
Increase/(Decrease) Increase/(Decrease) Increase/(Decrease)
1999 to 2000 2000 to 2001 1999-2001

Net Sales 8.42% 18.07% 13.24% 254,746.00 21,446.00 49,899.00

0 #DIV/0! #DIV/0! #DIV/0! - - -

0 #DIV/0! #DIV/0! #DIV/0! - - -

0 #DIV/0! #DIV/0! #DIV/0! - - -

Total Revenues or Sales 8.42% 18.07% 13.24% 254,746.00 21,446.00 49,899.00

Cost of Goods Sold 5.18% 19.42% 12.30% 155,521.00 8,049.00 31,768.00

Operating Income 13.50% 16.10% 14.80% 99,225.00 13,397.00 18,131.00

Selling Gen and Admin Expense 9.20% 9.71% 9.46% 25,543.00 2,351.00 2,708.00

0 #DIV/0! #DIV/0! #DIV/0! - - -

Earnings Before Interest, Taxes,

Depreciation & Amortization (EBITDA) 14.99% 18.20% 16.60% 73,682.00 11,046.00 15,423.00

Depreciation and Amortization 9.87% 17.59% 13.73% 18,464.00 1,823.00 3,568.00

Earnings Before Interest & Taxes

(EBIT) 16.70% 18.40% 17.55% 55,218.00 9,223.00 11,855.00

Net Interest Expense 23.52% 6.32% 14.92% 5,047.00 1,187.00 394.00

Non Operating Income (4.61%) 22.12% 8.76% 6,512.00 (300.00) 1,374.00

Net Income Before Taxes (NIBT) 19.09% 19.40% 19.25% 43,659.00 8,336.00 10,087.00

Income Tax Expense 19.09% 19.40% 19.25% 16,263.00 3,105.00 3,758.00

Net Income After Taxes (NIAT) 19.09% 19.40% 19.25% 27,396.00 5,231.00 6,329.00

Discussion
Go To Start Print

Sonic
Financial Analysis

Common Size Income Statements

Line Items Reflected as a Percentage of Total Revenues or Sales

1999 2000 2001

Net Sales 100.00% 100.00% 100.00%

0 0.00% 0.00% 0.00%

0 0.00% 0.00% 0.00%

0 0.00% 0.00% 0.00%

Total Revenues or Sales 100.00% 100.00% 100.00%

Cost of Goods Sold 61.05% 59.22% 59.90%

Operating Income 38.95% 40.78% 40.10%

Selling Gen and Admin Expense 10.03% 10.10% 9.38%

0 0.00% 0.00% 0.00%

Earnings Before Interest, Taxes,

Depreciation & Amortization (EBITDA) 28.92% 30.68% 30.71%

Depreciation and Amortization 7.25% 7.35% 7.32%

Earnings Before Interest & Taxes (EBIT) 21.68% 23.33% 23.40%

Net Interest Expense 1.98% 2.26% 2.03%

Non Operating Income 2.56% 2.25% 2.33%

Net Income Before Taxes (NIBT) 17.14% 18.83% 19.04%

Income Tax Expense 6.38% 7.01% 7.09%

Net Income After Taxes (NIAT) 10.75% 11.81% 11.95%

Discussion
Go To Start Print

Sonic
Financial Analysis

Liquidity Ratios & Analysis

0.90
0.80
Current Ratio 1999 2000 2001 0.70
0.60
Total Current 0.50
Assets 12,576 16,877 23,529 0.40
0.30
÷ Total Current 0.20
Liabilities 20,319 23,248 26,864 0.10
-
= Current Ratio 0.62 0.73 0.88 1999 2000 2001

Discussion

0.90
0.80
Quick Ratio 1999 2000 2001 0.70
0.60
Total Current
0.50
Assets -
Inventories 11,931 16,252 22,846 0.40
0.30
÷ Total Current 0.20
Liabilities 20,319 23,248 26,864 0.10
-
= Quick Ratio 0.59 0.70 0.85 1999 2000 2001

Discussion

(0.00)
Inventory to Net
(0.03)
Working Capital 1999 2000 2001 (0.05)
(0.08)
Inventory 645 625 683 (0.10)
(0.13)

÷ Current Assets - (0.15)

(0.18)
Current Liabilities (7,743) (6,371) (3,335)
(0.20)
Inventory to Net (0.23)
= Working Capital (0.08) (0.10) (0.20) 1999 2000 2001

Discussion
Go To Start Print

Sonic
Financial Analysis

Activity Ratios & Analysis

500.00
Inventory
Turnover 1999 2000 2001 400.00

300.00
Sales 254,746 276,192 326,091
200.00
÷
Inventory 645 625 683 100.00

= Inventory -
Turnover 394.96 441.91 477.44 1999 2000 2001

Discussion

1.00
Total-Asset 0.90
Turnover 1999 2000 2001 0.80
0.70
0.60
0.50
Sales 254,746 276,192 326,091 0.40
0.30
÷ 0.20
Total Assets 256,677 278,371 358,000 0.10
= Total Asset -
Turnover 0.99 0.99 0.91 1999 2000 2001

Discussion

15.00
Average Collection
12.50
Period 1999 2000 2001
10.00

A/R 7,652 9,685 12,142 7.50

5.00
÷ Average Daily
Sales 697.9 756.7 893.4 2.50
= Average -
Collection Period 10.96 12.80 13.59 1999 2000 2001

Discussion
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Sonic
Financial Analysis

Leverage Ratios & Analysis

0.50
Debt-to-Assets
Ratio 1999 2000 2001 0.40

0.30
Total Debt 106,922 123,108 157,281
0.20
÷
Total Assets 256,677 278,371 358,000 0.10

= Debt-to-Assets -
Ratio 0.42 0.44 0.44 1999 2000 2001

Discussion

0.80
Debt-to-Equity 0.70
Ratio 1999 2000 2001 0.60
0.50
0.40
Total Debt 106,922 123,108 157,281 0.30
0.20
÷
Total Equity 149,755 155,263 200,719 0.10
= Debt-to-Equity -
Ratio 0.71 0.79 0.78 1999 2000 2001

Discussion

12.00
Times Interest
Earned 1999 2000 2001 10.00

8.00
EBIT 55,218 64,441 76,296 6.00

4.00
÷
Interest Expense 5,047 6,234 6,628 2.00
= Times Interest -
Earned 10.94 10.34 11.51 1999 2000 2001

Discussion
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Sonic
Financial Analysis
Profitability Ratios & Analysis
0.50

Gross Profit Margin 1999 2000 2001 0.40

0.30
Sales - COGS 99,225 112,622 130,753 0.20

÷ Sales 254,746 276,192 326,091 0.10

-
= Gross Profit Margin 0.39 0.41 0.40 1999 2000 2001

Discussion

0.12

0.10
Net Profit Margin 1999 2000 2001 0.08

0.06
NIAT 27,396 32,627 38,956 0.04

÷ Sales 254,746 276,192 326,091 0.02

-
= Net Profit Margin 0.11 0.12 0.12 1999 2000 2001

Discussion

Numbers are constant over the past three years.

0.25

Return on Sales 1999 2000 2001 0.20

0.15
EBIT 55,218 64,441 76,296 0.10

÷ Sales 254,746 276,192 326,091 0.05

-
= Return on Sales 0.22 0.23 0.23 1999 2000 2001

Discussion

0.25

Return on Equity 1999 2000 2001 0.20

0.15
NIAT 27,396 32,627 38,956 0.10

÷ Stockholder's Equity 149,755 155,263 200,719 0.05

-
= Return on Equity 0.18 0.21 0.19 1999 2000 2001

Discussion

0.13

Return on Assets 1999 2000 2001 0.10

0.08
NIAT 27,396 32,627 38,956 0.05

÷ Total Assets 256,677 278,371 358,000 0.03

-
= Return on Assets 0.11 0.12 0.11 1999 2000 2001

Discussion
Go To StartPrint Sonic
Financial Analysis

Altman's Z-Score (for manufacturers) and Z 2-Score (for non-manufacturers)

The Ratios: Results:

1999 2000 2001

Net Working Capital / Total
X1 =
Assets X1 = (0.03) (0.02) (0.01)
Retained Earnings / Total
X2 =
Assets
X2 = 0.26 0.25 0.22
X3 = EBIT / Total Assets
X3 = 0.29 0.30 0.28
Market Value of Equity /
X4 =
Book Value of Debt X4 = 1.40 1.26 1.28
X5 = Sales / Total Assets
X5 = 0.99 0.99 0.91
X4a = Net Worth / Total Debt
X4a = 1.40 1.26 1.28
Note: Because in most instances the market value of equity and the book value of debt are not given, SAM TW instead uses Total
Equity and Total Debt, respectively. In addition, it assumes that Total Equity equals Net Worth, so that, in fact, the
ratios X4 and X4a are computed to be identical. The resulting errors from these simplifying assumptions are negligible.

The Formulae and Results:

For manufacturers: Z = 1.2X1 + 1.4X2 + 3.3X3 + 0.6X4 + 1.0X5 =
3.11 3.08 2.90
Safe Safe Gray

For non-manufacturers: Z2 = 6.5X1 + 3.26X2 + 6.72X3 + 1.05X 4a =

4.06 4.04 3.87
Safe Safe Safe

What does it mean?

Criteria Safe Region Gray Region Bankrupt Region

Z (for Manufacturers) > 2.99 1.81 -- 2.99 < 1.81

Z2 (for Non-Manufacturers) > 2.59 1.11 -- 2.59 <1.11

Go To Start Print Sonic
Financial Analysis

Summary of Financial Analysis

There are five types of general conclusions that can be drawn from this type of financial analysis.
Please check the one that you feel is most representative of this company's performance.
Be prepared to support the conclusion chosen.
Choose one Conclusion Based Upon the Results Presented in the Financial Analysis
2 1 all indicators chosen should show strong performance to support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N."
The company has been well managed, has performed well, and is in strong financial c ondition. 2 all indicators chosen, except one, should be positive to support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N."

●
As above, except for one major aspect that is problematic.

The results are inconclusive, mixed.

As below, except for one major aspec t that is good.

3 a roughly equal number of indicators chosen should show good and poor performance to support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N."

4 all indicators chosen, except one, should show poor performance to support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N."

5 all indicators chosen should show poor performance to support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N."

The company has not been well managed, has not been performing well, and in fact is in serious trouble.

In the table below, indicate up to seven financial indicators and their values as of the most recent year that
support your conclusion. All indicators chosen should somehow support the chosen conclusion. If you find
that, in fact, they support a different conclusion, then click on that one.

Based upon the conclusion chosen above, all indicators chosen, except one, should be positive to
support your conclusion. Indicate P or N for Positive or Negative in the column labeled "P/N."

Indicator Indication Comments/Discussion P/N

General Discussion / Results of Analysis