Exhibit 1 Operating Statements for Years Ending December 31, 2004-2006,

and for the first quarter 2007 (thousands of dollars)

Exhibit 1

First Quarter
2004 2005 2006 2007
Net sales $1 624 $1 916 $2 242 $608
Cost of goods sold $1 304 $1 535 $1 818 $499
Gross profit on sales $320 $381 $424 $109

Operating expense b $272 $307 $347 $94

Interest expense $27 $30 $31 $8
Net income before taxes $21 $44 $46 $7

Provision for income taxes $7 $15 $16 $2

Net income $14 $29 $30 $5

Exhibit 1

2004 2004 2005 2005 2006

Net sales $1 624 $1 916 $2 242
Cost of goods sold $1 304 80,30% $1 535 80,10% $1 818
Gross profit on sales $320 19,70% $381 19,90% $424

Operating expense b $272 16,75% $307 16,04% $347

Interest expense $27 1,65% $30 1,56% $31
Net income before taxes $21 1,30% $44 2,30% $46

Provision for income taxes $7 0,46% $15 0,81% $16

Net income $14 0,85% $29 1,50% $30
↑
−
↓
Exhibit 2 Balance Sheet as of December 31, 2004-2006
and March 31, 2007 (thousands of dollars)

Exhibit 2

First Quarter
2004 2005 2006 2007
Cash $45 $53 $23 $32
Accounts receivable $187 $231 $264 $290
Inventory $243 $278 $379 $432
Total current assets $475 $562 $666 $755

Property & equipment $187 $202 $252 $252

Accumulated depreciation ($74) ($99) ($134) ($142)
Total PP&E, net $113 $103 $118 $110

Total assets $588 $665 $784 $865

Accounts payable $36 $42 $120 $203

Line of credit payable $149 $214 $249 $250
Accrued expenses $13 $14 $14 $12
Long term debt, current portion $24 $24 $24 $24
Current liabiliities $222 $294 $407 $489

Long-term debt $182 $158 $134 $128

Total liabilities $404 $452 $541 $617

Net worth $184 $213 $243 $248

Total liabilities and net worth $588 $665 $784 $865

Exhibit 2

First Quarter First Quarter

a
2006 2007 2007
$608 Cash
81,10% $499 82,10% Accounts receivable
18,90% $109 17,90% Inventory
Total current assets
15,46% $94 15,46%
1,39% $8 1,27% Property & equipment
2,05% $7 1,18% Accumulated depreciation
Total PP&E, net
0,71% $2 0,40%
1,34% $5 0,78% Total assets
Accounts payable
Line of credit payable
Accrued expenses
Long term debt, current portion
Current liabiliities

Long-term debt
Total liabilities

Net worth
Total liabilities and net worth
 Statements of Cash Flows: 2005 and 2006

2005 2006 2005-06

Net Income $29 $30 $59 Before Depreciations

Depreciation $25 $35 $60 Método de cálculo (direto ou indire
Inventory ($35) ($101) ($136) Reforço de inventário Gatou-se mai
Accounts receivable ($44) ($33) ($77) Igual ao inventário
Trade credit (Accounts payable) $6 $77 $84
Accrued expenses $1 $1 $1
Cash flows from operations ($18) $9 ($9)

Capital expenditures ($15) ($50) ($65)

Cash flows from investing activities ($15) ($50) ($65)

Bank borrowing (Line of credit) $65 $35 $100

Reduce long-term debt ($24) ($24) ($48)
Cash flow from financing activities $41 $11 $52

Increase / (decrease) in cash $8 ($30) ($22)

First Quarter
2004 2004 2005 2005 2006 2006 2007
$45 7,65% $53 7,98% $23 2,93% $32
$187 31,79% $231 34,76% $264 33,70% $290
$243 41,32% $278 41,77% $379 48,31% $432
$475 80,78% $562 84,50% $666 84,94% $755

$187 31,81% $202 30,40% $252 32,15% $252

($74) -12,59% ($99) -14,90% ($134) -17,10% ($142)
$113 19,22% $103 15,50% $118 15,06% $110

$588 $665 $784 $865

 $36 6,08% $42 6,33% $120 15,26% $203
$149 25,38% $214 32,23% $249 31,79% $250
$13 2,21% $14 2,05% $14 1,83% $12
$24 4,08% $24 3,61% $24 3,06% $24
$222 37,75% $294 44,22% $407 51,94% $489

$182 30,96% $158 23,77% $134 17,10% $128

$404 68,70% $452 68,00% $541 69,04% $617

$184 31,30% $213 32,00% $243 30,96% $248

$588 $665 $784 $865
ore Depreciations
todo de cálculo (direto ou indireto?) Parte do Net Income para obter Cash Flow From Operations. Método indireto da demonstração de flux
orço de inventário Gatou-se mais dinheiro a comprar face ao ano anterior
al ao inventário

First Quarter
2007
3,70%
33,57%
50,00%
87,28%

29,15%
-16,43%
12,72%
23,46%
28,92% linha de crédito diferente de empréstimo.
1,39% É mais flexível;usado para gerir
2,78% necessidades de financiamento a curto
56,53% prazo

14,80%
71,34%

28,65%
Flow From Operations. Método indireto da demonstração de fluxos de caixa

First Quarter
Profitability Ratios
2004 2005 2006 2007
Net Profit Margin/ Return on Sales 0,85% 1,50% 1,34% 0,78%
Return on Assets 2,34% 4,32% 3,83% 0,55%
Return on Equity 7,46% 13,49% 12,35% 1,91%
Return on Invested Capital 8,15% 11,13% 9,85% 1,72%
Gross Profit Margin 19,70% 19,90% 18,90% 17,90%
Operating Margin 2,95% 3,86% 3,44% 2,44%

First Quarter
Efficiency
2004 2005 2006 2007
Asset turnover 2,76 2,88 2,86 2,81
Equity Turnover 8,83 9,01 9,24 9,81
Accounts Receivable Turnover 8,69 8,30 8,49 8,37
Inventory turnover 5,37 5,53 4,80 4,62
Average collection period 42,00 44,00 43,00 43,60
Average payment period 10,00 10,00 24,00 37,10
Average inventory period 68,00 66,00 76,00 79,08

First Quarter
Liquidity
2004 2005 2006 2007
Current ratio 2,14 1,91 1,64 1,54
Quick ratio (acid test) 1,05 0,97 0,71 0,66
Cash ratio 0,20 0,18 0,06 0,07

First Quarter
Financial stability and Leverage
2004 2005 2006 2007
Total Debt Ratio 0,69 0,68 0,69 0,71
Debt to Equity 2,20 2,12 2,23 2,49
Financial Autonomy 0,31 0,32 0,31 0,29
Solvency 0,46 0,47 0,45 0,40
Interest Coverage 1,79 2,48 2,47 1,93
Equity Multiplier 3,20 3,12 3,23 3,49

Cashflow Ratios 2005-06

Cash Coverage -29,74%
Cash Flow Margin -0,41%
Current Liabilities Coverage -2,28%
Long Term Debt Coverage -6,93%
External Financing Index -559,65%

Growth Ratios 2004-05 2005-06

Sales 15,25% 14,53%
Profit 52,13% 4,30%
Assets 11,53% 15,21%
Industry
values
1,00% Está a par com a indústria, encontrando-se um bocado acima
3,50% A par com a indústria
6,80% Melhor que a indústria

Industry
values
2,2x Melhor que a indústria!! Bom!
 3.5x Superior ao da indústria! Explicado pelo aumento de vendas
20d Pior que a indústria! Muitos clientes a dever. Em 2004 e 2005 pagamos aos fornecedores num quarto do tempo qu
22d Melhor que a indústria. Paga rápido. Explicado no texto. NOTA: Demora-se mais a receber do que a pagar SEMP
104,6 Inferior à indústria. Bom! Boa gestão de inventário.

Industry
values
3,1 : 1 Valor a piorar e muito inferior à indústria. Péssimo
0,9 : 1 Valor a piorar e muito inferior à indústria. Péssimo

Industry
values
Está a financiar-se mais com passivo do que com capital próprio. Mau. Sempre acima de 2/3. Precisam do emprés
0,9 : 1 Superior à indústria. Péssimo

2,8x Pior que a indústria, mas a melhorar

ornecedores num quarto do tempo que os clientes demoram a pagar.