In the 6-month period ended March 31, 2014:
- Revenues exceeded budget by 4.3% but EBITDA only exceeded by 1.4% due to rising SG&A expenses. FYTD revenues were on par with budget but EBITDA was 10.9% below budget for the same reason.
- The CMS division significantly outperformed on revenues and EBITDA due to strong performance on BP North Slope contracts. However, new business revenue has not materialized for CMS.
- SG&A growth remains a concern, expected to be $1.7 million over budget by fiscal year end, reducing profitability. The analyst's forecast is more conservative than management's on profitability
7-Commercial Real-Estate Ideas by jimmy stepanianJimmy Stepanian
Spend a day Google searching for your local, newspapers, magazines, and business gazettes. Most editorials will have a list of contacts. With this information you willl be able to email your press releases. Send these contacts a simple email containing property details, how much it sold, property photo and information on seller, buyer or leasing business. Some press releases will be picked up while others would not. The likelihood of your stories being printed will depend on the news flow for that week.
1
News Release
Boeing Corporate Offices
100 North Riverside Plaza
Chicago, IL 60606-1596
www.boeing.com
Boeing Reports Strong Second-Quarter Results and Raises 2013 EPS Guidance
Core EPS (non-GAAP)* rose 13 percent to $1.67 on strong operating performance; GAAP EPS of $1.41
Revenue increased 9 percent to $21.8 billion reflecting higher deliveries on the 787 and 737 programs
Backlog grew to a record $410 billion, including $40 billion of net orders during the quarter
Operating cash flow before pension contributions* more than doubled to $3.5 billion
2013 Core EPS guidance increased to between $6.20 and $6.40; GAAP EPS to between $5.10 and $5.30
Table 1. Summary Financial Results Second Quarter First Half
(Dollars in Millions, except per share data) 2013 2012 Change 2013 2012 Change
Revenues $21,815 $20,005 9% $40,708 $39,388 3%
Non-GAAP*
Core Operating Earnings $2,028 $1,787 13% $3,895 $3,560 9%
Core Operating Margin 9.3% 8.9% 0.4 Pts 9.6% 9.0% 0.6 Pts
Core Earnings Per Share $1.67 $1.48 13% $3.40 $2.88 18%
Operating Cash Flow Before Pension
Contributions
$3,480 $1,671 108% $4,004 $2,508 60%
GAAP
Earnings From Operations $1,716 $1,542 11% $3,244 $3,107 4%
Operating Margin 7.9% 7.7% 0.2 Pts 8.0% 7.9% 0.1 Pts
Net Earnings $1,088 $967 13% $2,194 $1,890 16%
Earnings Per Share $1.41 $1.27 11% $2.85 $2.49 14%
Operating Cash Flow $3,467 $908 282% $3,991 $1,745 129%
* Non-GAAP measures (core operating earnings, core operating margin and core earnings per share) exclude certain
components of pension and post retirement benefit expense that the company believes are not reflective of underlying business
performance. Complete definitions of Boeing’s non-GAAP measures begin on page 6, “Non-GAAP Measures Disclosures.”
CHICAGO, July 24, 2013 – The Boeing Company [NYSE: BA] reported second-quarter core earnings per
share (non-GAAP) increased 13 percent* to $1.67, driven by strong performance across the company's businesses
(Table 1). Second-quarter core operating earnings (non-GAAP) also increased 13 percent* to $2.0 billion from the
same period of the prior year. Second-quarter revenue was $21.8 billion, GAAP earnings from operations was $1.7
billion and earnings per share was $1.41. Core earnings per share guidance increased to between $6.20 and
2
$6.40 and GAAP earnings per share guidance increased to between $5.10 and $5.30, reflecting the strong
performance. The company also increased its revenue guidance to between $83 and $86 billion on higher
Defense, Space & Security revenues, and reaffirmed its 2013 operating cash flow outlook.
"Continued strong core operating performance drove higher earnings, revenue and operating cash flow
during the quarter, and we returned significant value to shareholders through share repurchases and increased
dividends," said Boeing Chairman, President and CEO Jim McNerney. "We also further strengthened our market-
leading position in commercial airplanes with the succe ...
TCS recently reported its Q1FY15 results, which were in line on revenue front & at operating level. However, the net profits were above estimates, aided by higher other income. Buy on dips.
ING Vyasa Bank Q2FY14 Result: Maintain neutralIndiaNotes.com
ING Vysya Bank’s (VYSB) 2QFY15 PAT was 9% above estimate at INR1.8b (+2% YoY) led by better-than-expected NIM (+10bp) and lower provisioning. Reported NIM improved 17bp QoQ to 3.54%. However, adjusted for interest reversal on account of stressed accounts in 1QFY15, NIM was stable QoQ at 3.54%.
DB Corp’s 1QFY15 proforma PAT grew 4% YoY to INR791m vs our estimate of INR771m. While print ad revenue was 4% below estimate, EBITDA/PAT were 3-4% above estimate led by lower RM cost and other expenses.; buy.
1. CORPORATION
Business Analyst Report
COMPANY XYZ
For the 6-Month Period Ended March 31, 2014
SUMMARY
1A: Reporting Period Summary
1B: Analysis of Financial Results and Forecast
1C: Key Metrics MTD Bud Var FYTD Bud Var
Revenue 19,903,877 19,086,295 4.3% 99,616,001 99,729,515 -0.1%
EBITDA 771,144 760,758 1.4% 2,318,560 2,600,832 -10.9%
EBITDA Margin 3.9% 4.0% -2.8% 2.3% 2.6% -10.8%
DSO 41 40 0.5% Bud = PY
Free Cash flow (2,124,841) 1,469,697 -244.6%
ROE 17.4% 20.1% -13.3%
Capex Spend 444,288 1,639,780 72.9%
* In March, revenues exceed budget by $0.8 million or 4.3% (Fig. 1C). The gross margin of 10.7% was on par with budget (Fig. 3D & 4A).
EBITDA exceeded budget by $0.01 million, or 1.4%, a result that could have been better were it not for rising SG&A expenses (Fig. 3E).
* FYTD, revenues of $99.6 million were on par with budget (Fig. 1C). The gross margin of 9.9% exceeded budget of 9.8% and prior year of
9.0% (Fig. 3D & 4A). EBITDA was below budget by $0.3 million, or 10.9%, due to high SG&A expenses (Fig. 1C & 3E).
* To improve performance, management has begun multiple initiatives to grow revenue and reduce indirect costs over the next 18
months. From the analyst’s perspective, the risk is that the expected timeline for executing on these all initiatives is too aggressive given
that resources are already stretch thinly. In addition, management is getting pushback from NDC on high SG&A spending. The analyst FYE
projection is for SG&A to exceed budget by $1.7 million. Some initiatives—making 401(k) contributions more competitive and increasing
employee training, for instance—would increase costs further, but XYZ may not have sufficient funds to carry them out.
* In April, NMS wired $1.425 million to the contractor to start building the restaurant at the new UAA sports arena.
* DSO was 41 days (Fig 2G). Management expects to increase the level of automation in the billing process which should reduce DSO.
*FCF was negative $2.4 million (Fig. 2D), driven by net income of $1.8 million (Fig. 4A), depreciation of $0.5 million, capex spend of $0.4
million (Fig. 2D), and an increase in working capital of $4.0 million (Fig. 5A).
* The outlook for FY14 is good. XYZ is expected to exceed the revenue target but underperform on EBITDA. The analyst's projection is
more conservative than management's regarding profitability due to the rate of increase in SG&A.
FYTD, XYZ revenues tracked closely with budget (Fig. 3C), while the gross margin exceeded budget and prior year (Fig. 3D). Since
December the gross margin has increased significantly. In particular, SEC and STF have shown noticeable improvement. On the downside,
EBITDA significantly lagged budget. The key driver for the underperformance was an increase in SG&A. The increase included $1.5 million
of indirect expenses attributable to higher executive management costs, the facility consolidation, a PMO, severance payments, and
increased employee participation in the health plan. Simultaneously, there were offsetting expense reductions in STF leadership, IT costs,
and workman’s comp and 401(k) accruals. The net effect FYTD was a $1.0 million increase over FY13 (Fig. 3E & 4A). Division specific
performance was as follows:
* CMS has had a stellar year so far thanks to the strong performance of the BP North Slope contracts. EBITDA of $4.2 million exceeded
budget by $1.1 million or 36.9%, the highest among the divisions (Fig. 3C). On the downside, new business revenue has not materialized.
However, XYZ has invested in leadership capacity (VPO and two managers), which management believes will result in new contracts. In
the long-term, CMS is working to increase revenues from other contracts to reduce the risk of being so heavily dependent upon BP.
* FFM’s revenues and EBITDA have lagged budget FYTD (Fig. 3C). On the upside, gross margins have improved over the past four months,
and FFM has signed several contracts that management believes will add material earnings in this and future years.
*LDG was ahead of budget for revenue and EBITDA (Fig. 3C), and FYE EBITDA is expected to reach $1.8 million vs. budget of $1.6 million.
The Faribanks property is the only one that has experienced operational and financial challanges.
* STF’s revenues and EBITDA have lagged budget FYTD (Fig. 3C). However, management has pointed a new leader who has successfully
transformed the division over the past five months. STF's FYE EBITDA is expected to exceed budget by over 30% (Fig. 3G). Once STF has
a strong operation in AK, it will seek to provide staffing services to L48 clients again.
* SEC revenues and EBITDA have lagged budget FYTD (Fig. 3C). The main challenges have been the lack of new business revenue (Fig. 3F)
and unprofitable L48 contracts. Management is working with Sodexo to ensure that new bids are competitive and existing contracts with
P&G are renegotiated or terminated. On the upside, DVS center is gaining traction, and management projects that the investment will
break even in September 2014, a delay of one year compared to the original business case.
The growth in SG&A remains a concern. By FYE, SG&A is likely to reach $14.6 million (Fig. 4B) vs. budget of 12.9 million vs. FY13 of $11.8
million. This increase will reduce profitability. The FYE EBITDA forecast is the same as last month: $5.7 million vs. budget of $6.4 million,
with a margin of 2.8% vs. budget of 3.2%.
XYZ - BAR - FY14 Period 6 Print
date: 4/25/2014 7:43 AM Page 1 of 10
2. COMPANY
Business Analyst Report
NANA Management Services
For the 6-Month Period Ended March 31, 2014
STANDARD CHARTS
47 46 46
55
41 41
40
69
Days
Monthly Days Sales Outstanding
DSO PY Avg Sodexo FY13 Avg
2G
1,470
820
(2,125)
444
1,751
2,244
(3,000)
(2,000)
(1,000)
0
1,000
2,000
3,000
FCF Capex
Thousands
FCF & Capex
Bud YTD Act YTD FYE
2D
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
0
5
10
15
20
25
Millions
Revenue by Month
PY Budget Actual Forecast Variance %
2A
Monthly Revenue Variance to Budget %
14.3%
10.5%
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
0%
5%
10%
15%
20%
25%
0%
5%
10%
15%
20%
Gross Margin %
PY
Actual
Sodexo
Budget
Forecast
XYZ Company Avg
2B
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
0%
5%
10%
0%
5%
10%
SG&A Expenses, % of Gross Revenue
PY Budget Actual Forecast
2C
6.9%
4.4%
2.8%
1.7% 1.9%
2.3% 2.4% 2.4% 2.4% 2.5% 2.7% 2.8%
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
0%
1%
2%
3%
4%
5%
6%
7%
8%
0
1
2
3
4
5
6
7
Millions
Cumulative EBITDA & Margin %
PY Budget Actual Forecast PY Margin % Bud Margin % Actual/F'cast Margin %
2F
Cumulative $ Cumulative Margin %
20.1%
17.4%
17.0%
15%
16%
16%
17%
17%
18%
18%
19%
19%
20%
20%
21%
ROE
ROE
Bud YTD Act YTD FYE
2E
FYE capex is driven primarily by the investment in the UAA arena.
Print date: 4/25/2014 7:43 AM Page 2 of 10
3. CORPORATION
Business Analyst Report
NANA Management Services
For the 5-Month Period Ended February 28, 2014
CUSTOM CHARTS
March Revenue (in $ Thousands) March EBITDA (in $ Thousands) EBITDA Margin %
ACT BUD PY ACT BudVar BudVar% PYVar PYVar% ACT BUD PY ACT BudVar BudVar% PYVar PYVar% ACT BUD PY ACT
CMS 7,740 6,970 6,649 770 11.0% 1,091 16.4% 753 618 419 135 21.9% 334 79.8% 9.7% 8.9% 6.3%
FFM 4,685 4,544 4,453 140 3.1% 232 5.2% 566 630 522 (65) -10.3% 43 8.3% 12.1% 13.9% 11.7%
LDG 1,709 1,712 1,694 (2) -0.1% 15 0.9% 76 74 52 2 2.3% 24 45.8% 4.4% 4.3% 3.1%
STF 1,418 1,482 1,397 (64) -4.3% 21 1.5% 269 199 183 70 35.0% 86 46.8% 19.0% 13.5% 13.1%
SEC 4,352 4,378 3,709 (26) -0.6% 643 17.3% 294 364 78 (70) -19.2% 217 278.9% 6.8% 8.3% 2.1%
Other 0 - - 0 0.0% 0 0.0% (1,187) (1,125) (1,127) (62) -5.5% (60) -5.3%
Total 19,904 19,086 17,902 818 4.3% 2,002 11.2% 771 761 127 10 1.4% 644 507.2% 3.9% 4.0% 0.7%
TRUE TRUE
FYTD Revenue (in $ Thousands) FYTD EBITDA (in $ Thousands) EBITDA Margin %
ACT BUD PY ACT BudVar BudVar% PYVar PYVar% ACT BUD PY ACT BudVar BudVar% PYVar PYVar% ACT BUD PY ACT
CMS 39,526 36,672 35,076 2,854 7.8% 4,449 12.7% 4,176 3,050 2,802 1,127 36.9% 1,374 49.0% 10.6% 8.3% 8.0%
FFM 23,772 24,781 22,727 (1,008) -4.1% 1,045 4.6% 2,786 3,145 2,959 (359) -11.4% (174) -5.9% 11.7% 12.7% 13.0%
LDG 8,890 8,738 8,786 153 1.7% 104 1.2% 279 228 191 51 22.5% 88 46.0% 3.1% 2.6% 2.2%
STF 7,092 7,809 6,311 (717) -9.2% 780 12.4% 892 945 532 (53) -5.6% 360 67.7% 12.6% 12.1% 8.4%
SEC 20,336 21,730 18,409 (1,394) -6.4% 1,927 10.5% 856 1,593 764 (737) -46.3% 92 12.0% 4.2% 7.3% 4.2%
Other - - 0 0 0.0% (0) -100.0% (6,670) (6,359) (5,979) (311) -4.9% (691) -11.6%
Total 99,616 99,730 91,310 (114) -0.1% 8,306 9.1% 2,319 2,601 1,270 (282) -10.9% 1,049 82.6% 2.3% 2.6% 1.4%
TRUE TRUE
3C
FFM's revenue were down due to
lower than expected new business
revenue ($1.1M) and the delayed
start-date of the Alaska Airlines
Maintenance contract.
SEC's revenues were below budget driven by lower than
expected new revenue from Lower 48 business. EBITDA
was below budget because SEC incurred significant fixed
expenses for the DVSC, while spending heavily on product
installations to build capacity, and because existing P&G
contracts resulted in losses.
3B
CMS posted above budget revenues and strong margins, driven by the BP North Slope contracts, and thus resulting in above budget EBITDA.
SEC's revenues rebounded thanks to an increase in existing business revenues as well as new business revenues. EBITDA was stronger than in prior month but the Lower
48 contracts still lost money on average mainly due to high administrative costs.
SG&A was significantly above budget and dragged down overall profitability.
Financial Performance Goals:
* Grow revenue to $320M by FY18 (CAGR of 11.6%)
* Achieve FY14 EBT of $5.5 million and EBT margin of 2.7%, growing to $13.1 million and 4.0% by FY18
3A
Print date: 4/25/2014 7:43 AM Page 3 of 10
4. CORPORATION
Business Analyst Report
XYZ Company
For the 5-Month Period Ended February 28, 2014
CUSTOM CHARTS
Gross Margin %
Period Trend FYTD Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Total
CMS ACT 10.9% 14.6% 11.6% 10.3% 7.6% 11.8% 10.2% 10.9%
BUD 8.8% 8.7% 8.7% 6.9% 8.3% 10.8% 9.4% 9.3% 9.4% 9.5% 8.9% 9.2% 8.1% 8.9%
PY ACT 8.6% 13.0% 9.0% 7.7% 5.8% 9.5% 7.4% 10.2% 10.7% 10.5% 7.4% 11.3% 9.9% 9.3%
FFM ACT 11.9% 18.5% 12.0% 9.1% 9.7% 10.3% 12.1% 11.9%
BUD 12.8% 14.9% 12.3% 13.5% 8.0% 13.0% 14.0% 12.2% 12.8% 10.7% 9.4% 9.0% 20.1% 12.8%
PY ACT 13.4% 18.0% 13.7% 12.4% 8.6% 14.7% 12.2% 13.7% 15.6% 4.6% 7.6% 9.1% 14.1% 12.4%
LDG ACT 5.8% 5.4% 5.4% 6.2% 5.0% 6.1% 6.6% 5.8%
BUD 5.6% 6.1% 5.1% 5.0% 4.7% 5.7% 6.7% 6.9% 9.1% 17.8% 17.9% 21.0% 13.2% 10.7%
PY ACT 6.0% 6.6% 4.3% 6.6% 3.7% 6.5% 7.5% 12.3% 11.3% 19.3% 19.4% 19.2% 12.0% 11.4%
STF ACT 13.1% 15.2% 12.1% 6.3% 10.3% 13.3% 20.3% 13.1%
BUD 14.0% 15.0% 13.7% 14.1% 12.2% 13.3% 15.2% 14.0% 14.5% 12.4% 13.5% 15.6% 13.1% 13.9%
PY ACT 10.7% 10.9% 11.2% 8.5% 5.3% 12.0% 14.4% 13.3% 16.3% 10.1% 9.0% 18.6% 18.4% 12.6%
SEC ACT 5.1% 7.5% 4.8% 0.6% 2.6% 6.9% 7.7% 5.1%
BUD 8.3% 10.0% 8.1% 6.7% 6.7% 9.2% 9.3% 8.4% 9.2% 7.6% 7.6% 9.8% 8.4% 8.4%
PY ACT 5.7% 11.9% 7.6% 4.7% 5.6% 2.2% 3.4% 3.4% 1.8% 1.8% 4.5% 10.8% 10.2% 5.7%
Total ACT 9.9% 13.4% 9.9% 7.5% 6.9% 11.1% 10.7% 9.9%
BUD 9.8% 10.9% 9.6% 8.9% 7.9% 10.8% 10.7% 10.0% 10.5% 10.5% 10.1% 11.1% 12.5% 10.3%
PY ACT 9.0% 13.4% 9.5% 8.1% 5.8% 9.2% 8.3% 10.1% 10.8% 8.8% 8.5% 12.3% 11.8% 9.7%
3D
All divisions except CMS reported an increase in gross margin for the three-month
period January to March.
* CMS’ gross margin decreased 160 bps to 10.2% in March. The decrease was
mainly attributable to the BP North Slope contracts. Increasing labor expenses
were also to blame.
* FFM's gross margin increased 180 bps to 12.1% in March. The increase was
attributable to the Healthcare Food Services and Fairbanks Airport contracts.
* SEC' gross margin rose due to new projects as well as the Exxon Fairweather, and
BP North Slope contracts.
* STF's gross margin increased thanks to the NSO Alyeska contract.
FYTD, SEC's gross margin remains low because the division is
incurring significant fixed expenses for the Digital Video
Surveillance Center, while spending heavily on product
installations to build capacity. However, the margin has
improved significantly since December, as the division's
revenues have increased.
Primarily driven by the NSO Alyeska contract.
Print date: 4/25/2014 7:43 AM Page 4 of 10
5. NANA DEVELOPMENT CORPORATION
Business Analyst Report
XYZ Company
For the 5-Month Period Ended February 28, 2014
CUSTOM CHARTS
SG&A
Oct Nov Dec Jan Feb Mar Total
ACT 889 1,138 1,230 1,199 1,356 1,256 7,068
BUD 990 1,057 1,247 1,018 994 1,139 6,445
PY ACT 845 1,000 1,233 902 957 1,170 6,107
SG&A, % of Revenue
Oct Nov Dec Jan Feb Mar Total
ACT 6.1% 7.4% 6.8% 8.1% 8.1% 6.3% 7.3%
BUD 6.2% 6.8% 6.9% 6.9% 6.1% 6.0% 6.6%
PY ACT 6.1% 6.9% 7.2% 6.9% 6.5% 6.5% 6.7%
(in $ '000)
New Business Revenue New Business Revenue New Business Revenue
FYTD March
Mgmt.'s Projection for Fiscal Year
End
Mgmt.'s Projection for FYE made in
Budget Actual Var Budget Projection Var Dec Jan Feb Mar Change from Feb.
CMS 750 - (750) 1,500 - (1,500) 550 - 1,523 - (1,523)
FFM 1,696 848 (847) 3,391 4,145 754 2,165 2,759 3,552 4,145 593
LDG - - 0 - - 0 - - - - 0
STF 356 46 (310) 707 586 (121) 774 779 698 586 (112)
SEC 2,618 717 (1,901) 5,349 3,468 (1,881) 2,848 2,530 3,035 3,468 433
Total 5,420 1,611 (3,808) 10,947 8,199 (2,748) 6,338 6,067 8,808 8,199 (609)
Existing Business
Budget Projection Var
CMS 73,753 76,965 3,212
FFM 44,337 43,912 (425)
LDG 19,019 19,838 819
STF 15,080 14,323 (757)
SEC 38,412 38,879 467
Total 190,600 193,917 3,317
Total Business
Budget Projection Var
CMS 75,253 76,965 1,712
FFM 47,728 48,057 329
LDG 19,019 19,838 819
STF 15,787 14,909 (878)
SEC 43,761 42,347 (1,414)
Total 201,547 202,116 569
Management's Forecast for Fiscal Year End Operating Income
Forecast BUD PY ACT BudVar BudVar% PYVar PYVar%
CMS 7,408 6,335 6,281 1,073 16.9% 1,127 17.9%
FFM 5,054 5,448 4,615 (394) -7.2% 439 9.5%
LDG 1,753 1,574 1,647 179 11.4% 106 6.5%
STF 1,954 1,887 1,461 67 3.6% 493 33.7%
SEC 2,573 3,061 1,513 (488) -15.9% 1,060 70.1%
Other (13,640) (12,819) (10,695) (821) -6.4% (2,945) -27.5%
Total 5,102 5,486 4,822 (384) -7.0% 280 5.8%
3F
The projection for CMS' existing business has increased materially as compared to
budget, offsetting the decrease in CMS' new business revenue. The main drivers
for the increase were BP North Slope ($2.9M) and PGI Conoco ($1.6M). It is worth
noting that the projection does not include revenues for ENI after July/August
because the client has indicated dissatisfaction with the pricing and is planning on
finding another contractor. In addition, the revenue projection for the BP
Anchorage Ops/Hsk contract has decreased by $1.3M since February because BP
has indicated that it will not be doing as much capital project work in the building
as originally thought.
Lodging has increased revenue projection based on projected strength of the
market and pricing, mainly at the Anchorage Courtyard and University Lakes
hotels.
FFM: Main drivers were Maniilaq Health FDS ($0.2M), Juneau SD Food Service
($0.2M), and NDC Benson Fac & Janitorial ($0.2M), offset by Northwest Arctic
Borough SD FDS ($0.2M).
SEC: Lack of new business,
including Purcell in Alaska
($0.9M) and P&G in the
Lower 48 ($2.0M).
SEC: multiple upward adjustment, including Exxon ($0.4M), Repsol Services 2
($0.4M), and PGI Conoco ($0.2M), partially offset by Benton Harbor (-$0.4M).
Overall, XYZ will likely exceed its revenue target for the FY14.
The lack of new business
revenue poses a threat to
long-term growth.
However, XYZ appears to
be regaining some ground.
STF: multiple downward adjustment, including ANTHC Staffing ($0.7M), LEISNOI
MSA ($0.3M) and contracts in Houston ($1.1M), partially offset by upward
adjustments, including NSO Alyeska ($0.6M) and AK Frontier Constructors
($0.4M).
3E SG&A expenses have increased both in absolute terms and as
a percent of revenue as compared to FY13, driven by
increases in facilities consolidation expenses, a PMO office,
severance packages, healthcare costs, and new leadership
positions.
Management's projection for
new revenue has been revised
downward by $0.5M since
February. The main reason
for the adjustment pertained
to CMS. The February
numbers for CMS included
projections for Black Gold
Oilfield Services.
3G
FYE Operating Income is projected to lag
budget by 7%, driven by lower than
expected new business revenue in FFM
and SEC. However, all divisions are
expected outperform FY13, with STF and
SEC showing very strong improvements.
FYTD SEC has generated only $0.7M in new revenue . Yet management's projection for the next six months is very aggressive. It is based
on the assumption that tighter collaboration between the sales executives and operations will support these results. Given that six
months have already passed, it will be challenging to achieve the projection.
Print date: 4/25/2014 7:43 AM Page 5 of 10
6. NANA DEVELOPMENT CORPORATION
Business Analyst Report
XYZ Company
For the 5-Month Period Ended February 28, 2014
CUSTOM CHARTS
0%
2%
4%
6%
8%
10%
12%
14%
16%
0
200
400
600
800
1,000
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Thousands
Camp Services
EBITDA and EBITDA Margin % by Month
PY Actual Budget Actuals PY Act % Bud % Act %
3K
0%
5%
10%
15%
20%
25%
0
100
200
300
400
500
600
700
800
900
1,000
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Thousands
Food & Facilities Management
EBITDA and EBITDA Margin % by Month
PY Actual Budget Actuals PY Act % Bud % Act %
3M
0%
5%
10%
15%
20%
25%
0
100
200
300
400
500
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Thousands
Lodging
EBITDA and EBITDA Margin % by Month
PY Actual Budget Actuals PY Act % Bud % Act %
3O
-4%
-2%
0%
2%
4%
6%
8%
-400
-200
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Thousands
XYZ Company
EBITDA and EBITDA Margin % by Month
PY Actual Budget Actuals
PY Act % Bud % Act %
3I
-10%
-5%
0%
5%
10%
15%
0
2,000
4,000
6,000
8,000
10,000
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Thousands
Camp Services
Revenue by Month
PY Actual Budget Actuals Variance %
3J
Monthly Revenue Variance to Budget %
-15%
-10%
-5%
0%
5%
0
1,000
2,000
3,000
4,000
5,000
6,000
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Thousands
Food & Facilities Management
Revenue by Month
PY Actual Budget Actuals Variance %
3L
Monthly Revenue
Variance to Budget %
-10%
-5%
0%
5%
10%
15%
0
500
1,000
1,500
2,000
2,500
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Thousands
Lodging
Revenue by Month
PY Actual Budget Actuals Variance %
3N
Monthly Revenue Variance to Budget %
The EBITDA margin rebounded compared to January.
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
-12%
-10%
-8%
-6%
-4%
-2%
0%
2%
4%
6%
0
5
10
15
20
25
Millions
Revenue by Month
PY Budget Actual Forecast Variance %
3H
Monthly Revenue Variance to Budget %
Print date: 4/25/2014 7:43 AM Page 6 of 10
7. NANA DEVELOPMENT CORPORATION
Business Analyst Report
XYZ Company
For the 5-Month Period Ended February 28, 2014
CUSTOM CHARTS
3S Note: DWC = Days Sales Outstanding + Days Inventory on Hand - Number of Days of Payables
-2%
0%
2%
4%
6%
8%
10%
12%
-100
0
100
200
300
400
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Thousands
Security
EBITDA and EBITDA Margin % by Month
PY Actual Budget Actuals PY Act % Bud % Act %
3S
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
0
50
100
150
200
250
300
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Thousands
Staffing
EBITDA and EBITDA Margin %
PY Actual Budget Actuals PY Act % Bud % Act %
3Q
-14%
-12%
-10%
-8%
-6%
-4%
-2%
0%
0
1,000
2,000
3,000
4,000
5,000
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Thousands
Security
Revenue by Month
PY Actual Budget Actuals Variance %
3R
Monthly Revenue Variance to Budget %
-20%
-15%
-10%
-5%
0%
0
500
1,000
1,500
2,000
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Thousands
Staffing
Revenue by Month
PY Actual Budget Actuals Variance %
3P
Monthly Revenue Variance to Budget %
0
10
20
30
40
50
60
70
Days Working Capital by Division
CMS FFM LDG STF SEC Total Linear (Total)
3T
The total DWC decreased two days to 38, as compared to February. The main driver was
FFM, which saw a decrease of 7 days in DSO.
14.1
14.5 14.4
13.7
12.3 11.9
15.0
15.7
14.9 14.4
13.7
13.1 12.9 12.6
11.2
10.4 10.8
12.8
0
2
4
6
8
10
12
14
16
18
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
Days Payables Outstanding
FY14 DPO FY13 DPO Linear (FY14 DPO)
3U
EBITDA has been tracking below budget as the division has incurred significant fixed
expenses for the Digital Video Surveillance Center, while spending heavily on product
installations to build capacity. In February and March, SEC has rebounded thanks to
stronger margins and new business revenue.
For FY14, the DPO has been on a downward trend. Since September, DPO
has decreased by 0.9 days, following a drop in the AP balance of
$2.2million, or 28%. At the same time, AR has increased by $3.6 million, or
15.9%. Together, the changes in AP and AR drove the increase in working
capital from September to February (see Fig. 5A).
Very positive trend.
Print date: 4/25/2014 7:43 AM Page 7 of 10
8. APPENDIX 1
NANA DEVELOPMENT CORPORATION
Business Analyst Report
XYZ Company
For the 6-Month Period Ended March 31, 2014
FINANCIAL AND OPERATING METRICS
Financial Metrics (in $ Millions)
4A Income Statement MTD BUD Var FYTD BUD Var PYFYTD Var
Revenues 19.9 19.1 4.3% 99.6 99.7 -0.1% 91.3 9.1%
COGS -17.8 -17.0 -4.3% -89.8 -89.9 0.2% -83.1 -8.0%
Gross Margin % 10.7% 10.7% 0.2% 9.9% 9.8% 0.7% 9.0% 9.7%
Overhead -0.2 -0.2 13.9% -1.0 -1.2 19.5% -1.3 22.8%
Gross Profit 1.9 1.8 6.8% 8.8 8.6 3.5% 6.9 27.6%
SG&A -1.3 -1.1 -10.2% -7.1 -6.4 -9.7% -6.1 -15.7%
Operating Income 0.7 0.7 0.9% 1.8 2.1 -15.5% 0.8 114.8%
Oper Margin % 3.4% 3.5% -3.2% 1.8% 2.1% -15.4% 0.9% 96.8%
Net Income 0.7 0.7 1.5% 1.8 2.1 -13.3% 0.8 120.1%
Net Margin % 3.4% 3.5% -2.6% 1.8% 2.1% -13.2% 0.9% 101.8%
EBITDA 0.8 0.8 1.4% 2.3 2.6 -10.9% 1.3 82.6%
EBITDA Margin % 3.9% 4.0% -2.8% 2.3% 2.6% -10.8% 1.4% 67.3%
TRUE TRUE
Forecast
4B Financials Trend Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 FYTD14 FYE 2014
Revenue 14.5 15.5 18.1 14.9 16.8 19.9 99.6 202.1
COGS (12.6) (13.9) (16.7) (13.9) (14.9) (17.8) (89.8) (180.8)
Gross Margin % 13.4% 9.9% 7.5% 6.9% 11.1% 10.7% 9.9% 10.5%
Overhead (0.1) (0.2) (0.2) (0.2) (0.1) (0.2) (1.0) (2.1)
Gross Profit 1.8 1.4 1.2 0.9 1.7 1.9 8.8 19.2
SG&A (0.9) (1.1) (1.2) (1.2) (1.4) (1.3) (7.0) (14.6)
Operating Income 0.9 0.2 (0.1) (0.3) 0.4 0.7 1.8 4.7
Oper Margin % 6.3% 1.4% -0.3% -2.3% 2.2% 3.4% 1.8% 2.3%
Net Income 0.9 0.2 (0.1) (0.3) 0.4 0.7 1.8 3.6
Net Margin % 6.3% 1.6% -0.3% -2.2% 2.2% 3.4% 1.8% 1.8%
EBITDA 1.0 0.3 0.0 (0.2) 0.5 0.8 2.3 5.7
EBITDA Margin % 6.9% 2.0% 0.2% -1.6% 2.7% 3.9% 2.3% 2.8%
4C Ratios Trend Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14
Revenue growth -30.1% 6.4% 16.8% -17.6% 13.0% 18.5%
Current ratio 1.76 2.06 2.11 2.15 2.10 2.08
Quick ratio 1.40 1.85 1.91 1.91 1.89 1.88
Cash ratio 0.36 0.30 0.06 (0.01) 0.21 0.21
Days Payable Outstanding 15 14 12 11 10 10
Total Asset Turnover ratio 0.35 0.43 0.52 0.44 0.48 0.55
Cash Turnover 1.95 3.40 21.57 (92.43) 5.47 6.11
Working capital TO ratio 1.72 1.33 1.19 0.93 1.29 1.47
4D Profitability Trend 2008 2009 2010 2011 2012 2013 FYTD14 *
ROE 23.9% 18.3% 6.6% 21.9% 25.2% 20.5% 18.0%
S&P 500 Annual % ∆ 1
-23.6% -9.4% 8.0% -0.9% 27.3% 16.7% 11.3%
Notes:
1 Based on the fiscal period Oct. 1 - Sep. 30. FYTD as of March 31, 2013.
* FYTD14 Net Income has been annualized.
XYZ beat the S&P 500 in FY13 and looks very likely to do the same in FY14.
XYZ - BAR - FY14 Period 6 Printe
date: 4/25/2014 7:43 AM
Page 8 of 10
9. APPENDIX 2
NANA DEVELOPMENT CORPORATION
Business Analyst Report
XYZ Company
As of March 31, 2014
BALANCE SHEET: 6-month rolling
5A Balance Sheet FY2013 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14
Total assets
Cash and cash equivalents 210,553 211,769 137,873 137,311 137,952 115,549 114,398
Cash held in NANA Central Treasury 5,257,657 7,246,426 4,414,480 699,865 (298,849) 2,956,698 3,142,443
Marketable securities - - - - - - -
Derivative financial instruments - - - - - - -
Trade accounts receivable, net 22,459,707 21,854,037 23,779,289 26,842,174 26,282,341 24,668,392 26,028,123
Income tax receivable - - - - - - -
Due from related parties 1,939,019 5,250,962 1,022,689 688,512 1,267,440 1,136,266 1,127,588
Income tax receivable from parent - - - - - - -
Other accounts receivable, net 36,361 32,346 6,799 15,524 22,189 23,213 26,369
Inventories 1,690,364 1,744,272 1,813,247 1,738,032 1,728,009 1,729,834 1,771,000
Deferred tax asset - - - - - - -
Prepaid expenses 394,872 358,043 313,465 363,978 322,265 195,638 154,085
Investments in subsidiaries 135,318 135,318 - - - - -
Total Current Assets 32,123,851 36,833,173 31,487,842 30,485,396 29,461,347 30,825,590 32,364,006
Net property and equipment, at cost 2,275,943 2,278,259 2,210,727 2,295,371 2,257,411 2,252,990 2,278,309
Other assets: - - - - - - -
Investments in affiliates - - - - - - -
Investments in subsidiaries - - - - - - -
Goodwill 1,634,337 1,634,337 1,634,337 1,634,337 1,634,337 1,634,337 1,634,337
Intangible assets, net - - - - - - -
Non-current deferred tax asset - - - - - - -
Other non-current assets 234,165 235,165 284,444 306,018 256,092 250,417 244,092
Total other assets 1,868,502 1,869,502 1,918,781 1,940,355 1,890,429 1,884,754 1,878,429
Total assets 36,268,296 40,980,934 35,617,350 34,721,122 33,609,187 34,963,334 36,520,744
Liabilities and Shareholders’ Equity - - - -
Current liabilities: - - - -
Accounts payable 7,777,085 5,986,494 6,278,845 6,203,767 4,872,524 5,477,608 5,596,334
Accrued expenses 7,496,646 7,852,928 7,337,580 7,108,896 8,081,579 8,129,082 8,458,658
Interest rate swap - - - - - - -
Taxes payable - - - - - - -
Due to NANA Central Treasury - - - - - - -
Due to related parties 1,538,500 6,723,838 1,576,904 1,103,271 776,487 756,429 1,340,591
Income tax payable to parent - - - - - - -
Dividends payable - - - - - - -
Resource revenue distributable - - - - - - -
Line of credit - - - - - - -
Deferred revenue 310,586 355,940 116,988 59,929 (32,742) 321,744 162,848
Elders' Settlement Trust Payable - - - - - - -
Current portion of long-term debt - - - - -
Current portion of long-term capital leases 8,966 7,462 6,040 4,618 3,106 4,089 3,955
Other current liabilities - - -
Cash Overdrafts - - - - - - -
Total current liabilities 17,131,783 20,926,662 15,316,357 14,480,481 13,700,954 14,688,952 15,562,386
Long- term debt, line of credit - - - - - - -
Interest rate swap - - - - - - -
Long-term debt, less current portion - - - - - - -
Long-term capital leases, less current portion - - - - - - -
Long-term deferred tax liability - - - - - - -
Pension benefit liability - - - - - - -
Other long-term liabilities - - - - - - -
Total liabilities 17,131,783 20,926,662 15,316,357 14,480,481 13,700,954 14,688,952 15,562,386
XYZ - BAR - FY14 Period 6 Printe
date: 4/25/2014 7:43 AM
Page 9 of 10
10. APPENDIX 2
NANA DEVELOPMENT CORPORATION
Business Analyst Report
XYZ Company
As of March 31, 2014
BALANCE SHEET: 6-month rolling
5A Balance Sheet FY2013 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14
Shareholders’ equity:
Common stock - - - - - - -
Preferred stock - - - - - - -
Additional paid-in capital 1,386,226 1,386,226 1,386,226 1,386,226 1,386,226 1,386,226 1,386,226
Contributed capital - - - - - - -
Retained earnings 13,825,618 17,750,287 17,750,287 17,750,287 17,750,287 17,750,287 17,750,287
Dividends - - - - - - -
Accumulated other comprehensive income - - - - - - -
Net Income (loss) 3,924,669 917,759 1,164,480 1,104,128 771,720 1,137,870 1,821,846
Total Shareholders' Equity 19,136,513 20,054,272 20,300,993 20,240,641 19,908,233 20,274,383 20,958,359
Noncontrolling interest - - - - - - -
Total equity 19,136,513 20,054,272 20,300,993 20,240,641 19,908,233 20,274,383 20,958,359
Total liabilities and equity 36,268,296 40,980,934 35,617,350 34,721,122 33,609,187 34,963,335 36,520,745
Working Capital (excl. cash and CT balances) 9,523,858 8,448,316 11,619,132 15,167,739 15,921,290 13,064,391 13,544,779
The increase of $3.5 million in working capital was due to the changes in AR and
AP. Since September, AR has increased by $3.6 million, or 15.9%, while AP has
decreased by $2.2 million, or 28.0%.
XYZ - BAR - FY14 Period 6 Printe
date: 4/25/2014 7:43 AM
Page 10 of 10