Document OEDnBRJEv84rw1L2GQex16y3w

TYLER PIPE INDUSTRIES, INC. 1935 ANNUAL PROFIT PLAN CONFIDENTIAL T-53417 * - H K ^ L f M A i X > r ^ O O C TYLER PIPE INDUSTRIES/ INC. 1985 ANNUAL PROFIT PLAN I. Company Organization II. Company Objectives III. 1984 Performance Review A. B. C. D. E. F. F-l. G. H. I. J. K. L. M. N. O. P. P-1. Q. Q-l. R. S. S-l. T. U. Net Sales - By Quarter Operating Profits - By Quarter Capital Expenditures - By Quarter Depreciation - By Quarter Return on Net Assets Net Assets Employed Calculations Industrial Revenue Bonds Escrow Account Net Income Balance Sheet Source and Application of Funds Cash Flow to Corporate Long-Term Debt (Incl. Curr. Port.) Potential Problem Areas Major Anticipated Events Disappointments Accomplishments Net Income - By Period Net Income - By Period Balance Sheet - By Period Balance Sheet - By Period Cash Flow to Corporate Intercompany Accounts Intercompany Accounts Capital Expenditures Income Taxes Payable D*OH r--HI CMK f-H r-H >^r I--| mr--i LD r i-- r--^ Oi r--O1Cr HT >0 CM *-H < (NJ Cn N^ CN -3 'CM Ln<-0 CM CM c-tfST' TYLER PIPE INDUSTRIES, INC. 1985 ANNUAL PROFIT PLAN IV. 1985 Annual Profit Plan A. B. C. D. E. F. F-l. 6. H. I. J. K. K-l. L. M. N. O. 0-1. P. P-1. Q. R. S. Net Sales - By Quarter Operating Profits - By (Barter Capital Expenditures - By Quarter Depreciation - By (Barter Return on Net Assets Net Assets Employed Calculations Industrial Revenue Bonds Escrow Account Net Income - By Quarter Balance Sheet - By Quarter Source and Application of Funds - By Quarter Cash Flow to Corporate Intercompany Accounts Intercompany Accounts - By Period Review of Competition Potential Problem Areas Major Anticipated Events Net Income - By Period Net Income - By Period Balance Sheet - By Period Balance Sheet - By Period Capital Expenditures Long-Term Debt - By Quarter Income Taxes Payable V. 1986 Annual Profit Plan A. B. C. D. E. F. F-l. 6. H. I. J. K. L. M. Net Sales - By Quarter Operating Profits - By Quarter Capital Expenditures - By Quarter Depreciation - By Quarter Return on Net Assets Net Assets Employed Calculations Industrial Revenue Bonds Escrow Account Net Income - By Quarter Balance Sheet - By Quarter Source and Application of Funds - By Quarter Cash Flow to Corporate Intercompany Accounts Long-Term Debt - By Quarter Income Taxes Payable , t 27 27 28 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 48 49 49 50 51 52 53 54 55 56 57 58 59 CONFIDENTIAL T-53419  O C D O O 'v IC J IU lJ C - V ^ iP O t -->--* 0 0 TYLER PIPE INDUSTRIES, INC. 1985 ANNUAL PROFIT PLAN VI. Long Range Plan - 5 Years A. B. C. D. E. F. F-l. G. H. I. J. K. L. M. N. O. P. Q. R. Net Sales Operating Profits Capital Expenditures Depreciation Return on Net Assets Net Assets Employed Calculations Industrial Revenue Bonds Escrow Account Net Income Balance Sheet Source and Application of Funds Cash Flow to Corporate Intercompany Accounts Long-Term Debt (Incl. Curr. Port.) Income Taxes Payable Permanent Differences Capital Gains Investment Tax Credit Timing Differences and Deferred Taxes Key Influencing Factors CONFIDENTIAL T-53420 TYLER PIPE INDUSTRIES, INC. 1985 ANNUAL PROFIT PLAN II. COMPANY OBJECTIVES 1. TO MAINTAIN QUALITY AND SERVICE SO THAT OUR PRODUCTS WILL BE PREFERRED AND SPECIFIED. 2. TO IMPROVE PRESENT, AND DEVELOP NEW, PROCESSES Atyp TECHNIQUES. 'i 3. TO DEFINE FIELDS OF INTEREST AND PROPOSE THE MEANS FOR ACHIEVING ADDITIONAL GROWTH IN THESE FIELDS BY CONSTANTLY RE-EXAMINING PRODUCT AND MARKET OPPORTUNITIES. 4. TO MAINTAIN A MINIMUM OPERATING PROFIT OF 12%. 5. TO MAINTAIN A MINIMUM OPERATING PROFIT RETURN ON NET ASSETS OF 30%. CONFIDENTIAL T-53421 DATE November 16, 1984 CONFIDENTIAL T-53422 v.p. ino. h i . v.p. met. 4 plastic mre. v.. c.i. m k . v.p. pukh. joisn v p ,gin mgi pihn oiv v.r. owv uvo vp. umirr SAW I I I . 1984 CONFIDENTIAL T-53423 I I I . 1984 PERFORMANCE REVIEW 1985 ANNUAL PROFIT PLAN A. NET SALES CAST IRON DWV PLAN VARIANCE B U_ 5: ZT CT 1ST Q. 26.2 1 30.6 2ND Q. 32.6 00 in CM m in m 1984 MID-YEAR REVIEW 30.6 3RD Q. 35.7 36.5 32.9 OO o R 3" oo L 'l 30.3 33.0 CO CM oo LA -3" in CM*--H m YEAR 10.7 ACTUAL 1983 UTILITIES PLAN VARIANCE Is-* r-H 28.8 30.7 32.1 30.1 121.7 rn 10.1 11.8 13.9 15.6 971 16.1 -=T ^H \ 53.5 59.1 3- p-H Is-* id in t*. CM ft ITS in pH 1*--0i -H r-v OO 00 pH OO co T-S a B CO U1 Q i2 & ACTUAL 1983 r < i______ i s 15.6 12.9 13.9 13.0 <T> 3" o perating unct: TYLER PIPE INDUSTRIES. INC.I PREPARED BY.____________________________________ OATE 11/16/84 PAGE NO I I I . 1984 PERFORMANCE REVIEW A. NET SALES PLASTICS PLAN ACTUAL/F'CST VARIANCE LH in 1ST Q. in =r 1984 MID-YEAR REVIEW ACTUAL 1983 r--i CD -3" in -=r -=r in 2ND Q. (2.0) 5.9 1985 ANNUAL PROFIT PLAN 3RD Q. YEAR o oo in =r S3 3" in in CD 8.2 26.5 3.0 17.5 (2.8) (9.0) CO 3" =r 21.3 21.1 3 CN 5 1 c3n- s CONSOLIDATED VARIANCE T^a ga CON UD r--i cr J" --"i IN* 56.4 ^ 2.5 60.0 57.5 C*C-MMH IV oo rv a in rH CO in IT s I3V Cn IV CM s R cr> =r in R 3- mAL 5 H-- a a<3 U- 1 a <T> cr ACTUAL 1983 OPERATING UNIT: TYLER PIPE INDUSTRIES. INC, PREPARED BY: & DATE: 1 1 /lfi/R U PAGE* CNI CO 5T -i--3H" CD I I I . 198*1 PERFORMANCE REVIEW1385 B. OPERATING PROFITS CAST IRON DWV PLAN 1ST Q. P U. VARIANCE 1984 MID-YEAR REVIEW ACTUAL 1983 > CD -aIA re CD 04 fA oo oo CD o -=T LA 2ND Q. 5.6 3RD Q. 7.5 2.8 4.5 3.5 3.9 o .=r c4 CNJ Z2T cn 97T YEAR 21.2 15.5 - iL* z " LTY KO P"H CD p-H pH pH L P u_ UTILITIES PLAN VARIANCE no S |1984 MID-YEAR REVIEW pH pH ACTUAL 1983 OPERATING UNIT: TYLER PIPE INDUSTRIES. INC. OO rA lA OJ IA 3.3 3.0 2.9 PREPARED BY: re fA o IA 3r OJ pH 1 eg 2.5 10.1 11.3 2.3 10.3 8.7 OATE 1 fA sa. 5 CD *--H I I I . 1984 PERFORMANCE REVIEW ' CAPITAL EXPENDITURES _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1985 ANNUAL PROFIT PLAN --------- .--------- ,--------- ,--------- ,--------- .----------.--------- .----- TYLER PIPE INDUSTRIES, INC.prepared by:date: /11 lfi/RU pageno I I I . 1984 IFORMANCE REVIEW E. RETURN ON NET ASSETS ACTUAL 1983 OPERATING PROFITS | 25.2 NET ASSETS EMPLOYED 60.1 3 RETURN ON NET ASSETS NVld B-S 1984 25.9 65.0 iSD.J 3 U3 R 3cr> 1985 ANNUAL PROFIT PLAN 32.8 * \ J CO iden-riAi 53429 ID -O r^FQRMANCE REVIEW _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1985 ANNUAL PROFIT PLAN ACTUAL 1984 1984 0 OCD m a& 0 00 ac oo tj ax <_Jc <5 a in in UO Om CO ivT ro m R oo oo lO in R 00 U3 UoqJ oao: CUMD ilnd s <c o CONFIDENTIAL T-53430 OPERATING UNIT:TYLER PIPE INDUSTRIES* INC,PREPARED BY. DATE: 11/16/84 page no I I I . 1984 PERFORMANCE REVIEW 1985 ANNUAL PROFIT PLAN IA O] inI U5 Z 'L vzxz I I I . 1984 PERFORMANCE REVIEW G. NET INCOPE to pH ACTUAL NET SALES 192.0 OPERATING PROFITS 25.2 ADJ. TO OPERATING PROFITS OUTSIDE INTEREST (NET) PROFITS PRETAX/INTERCO INT. INTERCOMPANY INTEREST 25.1 6.5 PROFITS PRETAX 18.6 opH CM j OO o P"H C DENT 33432 LL. t Z !o -STATE -h NET INCOME 1ST NINE MONTHS PLAN ACTUAL VAR. 155.3 162.0 1985 ANNUAL PROFIT PLAN 4TH QTR. PLAN VAR. CO 5 U_ LA ?' 50.1 tn pH to LA CO I 21.0 26.1 6.7 11 j 11 ! *"n. LA LA pH cn o CSI cn IA --1 rA 00 pH CM LA LA .a- CN CM "H -=T o6 26.0 5.2 15.7 20.5 9.3 10.9 (A pH CN LA 11 pH LO IA pH LA pH I fA ia =r 1pH 6.7 2.2 pH 11 *j OO 00 11 CO i YEAR PLAN A/F VAR. 25.9 32.8 p"H 1 pH 00 32.7 6.5 6.8 19.3 25.9 6.6 8.7 10.4 10.5 15.2 pH cn IA u5 in CN IA IN, -O' cn OWUTINO UNfT: TYLER PIPE INDUSTRIES, INC. PREPARED BY: DATE: 11/16/84 DAACMf 111. 1984 PERFORMANCE REVIEW1985 ANN1IA1 PROFIT PI AN H I. 1984 PERFORMANCE REVIEW1985 ANNUM PROFIT PI AN 111. 1984 . fORMANCE REVIEW 1985 ANNUAL PROFIT PLAN TYLER PIPE INDUSTRIES, INC. 1985 ANNUAL PROFIT PLAN ' 1984 PERFORMANCE REVIEW L. POTENTIAL PROBLEM AREAS A. The Potential Problem Areas for Tyler Pipe Industries, Inc. in 1984 were as follows: 1. Level and mix of construction spending 2. Price of scrap 3. Government regulations 4. Industry over-capacity 5. Import competition 6. Energy Costs 7. Price of PVC Resin 8. Possible labor problems 9. Customer bankruptcies B. New Potential Problem Areas since Last Annual Review: NONE C. REVIEW Date CONFIDENTIAL T-53437 November 16, 1984 PAGE 14 TYLER PIPE INDUSTRIES, INC. 1985 ANNUAL PROFIT PLAN III. 1984 PERFORMANCE REVIEW M. Major Anticipated Events A. The Major Anticipated Events for Tyler Pipe Industries, Inc. in 1984 were as follows: 1. Start Impact Molding Project 2. Continuation of Ductile Iron Program B. New Major Anticipated Events since Last Annual Review 1. Purchase of Gustin-Bacon 2. IBM 4381 Computer C. REVIEW Date CONFIDENTIAL T-53438 November 16, 1984 PAGE 15 TYLER PIPE INDUSTRIES, INC. 1985 ANNUAL PROFIT PLAN 1984 PERFORMANCE REVIEW N. DISAPPOINTMENTS In 1984 Tyler Pipe Industries, Inc. met with the following DISAPPOINTMENTS: 1. Profitability of Plastics Division 2. Export Business DATE CONFIDENTIAL T-53439 November 16, 1984 page 16 TYLER PIPE INDUSTRIES, INC. 1985 ANNUAL PROFIT PLAN 1984 PERFORMANCE REVIEW 0. ACCOMPLISHMENTS In 1984 Tyler Pipe Industries, Inc. had the following ACCOMPLISHMENTS: 1. Exceeded profit and cash plan 2. Improved Cast Iron DWV profit margins 3. Conversion of Medical Benefit Plan DATE CONFIDENT**1' T-SJMD November 16, 1984 PAGE 17 I I I . 1984 PERFORMANCE REVIEW _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1985 ANNUAL PROFIT PLAN OPERATING UNH: TYLER PIPE INDUSTRIES, INC.PREPAREO BY:' I DATE: I I I . 1984 PERFORMANCE REVIEW 12/31 3. BALANCE SHEET 1983 CASH UJ i ACCOUNTS RECEIVABLE (NET) OTHER 16.2 1 20.7 ' CURRENT ASSETS 37.6 INTANGIBLES & OTHER 32.5 PROP.,PLANT & EQUIP. (NET) 33.3 m 8 TOTAL ASSETS ACCTS.PAYABLE & ACCR. LIAB. 13.3 INCOME TAXES PAYABLE CURRENT LIABILITIES 13.3 3m in 3 to 0-j ACTUAL 9/30 23.3 19.0 31.6 108.7 15.5 1 1 rA ! LA cr 04 OO LONG TERM DEBT DEFERRED F .l.T . STOCKHOLDERS EQUITY I ?tint) ^ TOTAL LIAB. & S.E. 84.1 ZT 8 85.7 108.7 OPERATING UNTT: TYLER PIPE INDUSTRIES, INC. ( 8701 07T 8701 in LA -3" rH 04 rn 1985 ANNUAL PROFIT PLAN FORECAST 10/31 11/30 12/31 IA 23.7 18.4 l 20.9 18.1 18.6 I 18.0 ! 1 -=r 1 OJ 31.6 35.6 109.6 39.8 36.5 31.5 31.5 36.5 37.5 105.5 16.2 15.6 12.8 oo j- Ir--D\ ID CO r--t 12.9 (1.0) (2.1) * ri LA -=r rn OJ rn -3" -H o CN ro 88 -=T CN ro 87.3 109.6 86.4 105.5 PREPAREOBY: DATE. ll/lfi/B L PAGE NO.: 20 H i. 1984 PERFORMANCE REVIEW _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1985 ANNUAL PROFIT RAN 12/31 A C T U A L F O R E C A S T |Q-1, BALANCE SHEET 1983 9/30 10/31 11/30 12/31 CASH 382 355 355 355 ACCOUNTS RECEIVABLE (NET) INVENTORIES 16142 20719 23280 18996 23633 18395 20943 18095 3io--i 3* r--i ro lo o i-H LA o ln fH CD m tn CM =r 3ro--H S' in R CM m OTHER CURRENT ASSETS 37578 INTANGIBLES & OTHER PROP.,PLANT & EQUIP. (NET) j 33339 31609 34482 39856 36506 31563 35641 31532 36564 37506 TOTAL ASSETS 103391 108732 109597 107952 S R LlJ 1 1 Zj SS pH JQ3" 8 ACCTS.PAYABLE & ACCR. LIAB. CURRENT LIABILITIES (37) 13312 15522 1513 17035 1 1 16205 15618 12777 1557 17762 12926 (1039) (2038) opinH CO HFID T-5 GO DEFERRED F.I.T. STOCKHOLDERS EQUITY TOTAL LIAB. & S.E. =r TO ' 3125 r 1 103391 3125 85712 108732 poH cn -3" K oo 3125 3125 3362 88059 86378 109597 107952 opcRATiwo unit: TYLER PIPE INDUSTRIES, INC,I PREPARED BY:I DATE; 1 1 / lf i/ R l| | PAPE NO : 21  2= GO GO g s Q_ g C_> <c I I I . 1984 PERFORMANCE REVIEW _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1985 ANNUAL PROFIT PLAN I YEAR A C TU A LFO R E C A S T R. CASH FLOW TO CORPORATE 1983 1ST Q. 2ND Q. 3RD Q. C7> in iH 00 K\ -DIVIDENDS TOTAL OTHER CORPORATE CHARGES FEDERAL INCOME TAX TOTAL CASH FLOW cn cm .=r CM 2.3 5.5 7.3 15.1 8.2 1 CM 1 P"H pH i in cn --H in _r pH CM pH CM 3" 1 3" 1 2.5 6.8 8.2 3.8 8.5 12.5 1 -=r I \ o 1 -3" .3" 1 pH CM cr CM ^*H 3 -H >- 5.6 11.7 11.3 29.9 27 -- c s \ r \~ cc>nfidENTLilL T-S 445 OPERATING UNIT. TYLER PIPE INDUSTRIES, INC. PREPARED BY: DATE: 11/16/84 PAGE N O : 22 I I I . 1984 .IFORMANCE REVIEW 1985 ANNUAL PROFIT PLAN I I I . 1984 FORMANCE REVIEW T. CAPITAL EXPENDITURES ACTUAL 1983 CAST IRON DWV 6.9 UTILITIES PLASTICS TOTAL 8.6 ! SIGNIFICANT PROJECTS: IMPACT MOLDING IMPACT MOLDING CAPITALIZED INTEREST FORK TRUCKS ROAD TRUCKS & TRAILERS pH LA 11 F-- U3 IA 3 Ll_ i-H p-H IA p^ IA pH PLAN 13.3 1984 10.5 VAR. (2.8) 1985 ANNUAL PROFIT PLAN AFTER 1984 PLAN lL 5 VAR. pH pH id 6.0 pH lO IA lT\ fA 11 07 04 CO id 14.7 (3.3) 5.0 Z'Z O'T cr IA LTv oo ! o CM ^H ti fA 11 11 (1.6) IA 3 fA 11 11 pH 04 ii l1 o 04 oo lO CM CM IA rA ho in LA j 00 pH fA 1 1 _l 11 ! fA 11 LA CM 11 ! IA CM IA tA ^* IA ro IA o 11 fA OO YARD IMPROVEMENTS PLASTIC TOOLING VIATERMA1N GRAY IRON PATTERNS WATERMAIN DUCTILE PATTERNS O r i5n3 TOTAL AL CM pH 5.0 8.6 S3 o 1OPERATING UNIT: TYLER PIPE INDUSTF Z UCOJ 1^ <3T pH *=T ID (.1) (.3) 5.3 (1.8) 11.4 " PREPARED BY: fA fA 6.8 -- LA CM 2 3 a. iT DO B r--1 p-H lii <O I l l , 198H PERFORMANCE REVIEW1985 ANNUM PROFIT PI Ml oo 111. 1984 PERFORMANCE REVIEW _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1985 ANNUAL PROFIT RAN ACTUAL ACTUAL FORECAST U. INCOME TAXES PAYABLE 1983 1ST Q. 2ND Q. 3RD Q. o3 3 NA ADDITIONS LA 3 CN PROVISIONS DEFERRED (INCR.) DECR. 8.2 1 1 1 1 (.2) cn 1 cn 1 CN o oo LA 3 CNI TOTAL 3.2 YEAR 13.0 (.2) 12.8 3 1 *--*i 1 FIT TRF/INTERCO. AT Y/E FIT PAID TO CORP. SIT PAID AUTH. FIT PAID AUIU. TOTAL 8.2 NET CHANGE BEGINNING BALANCE n | p"H oo pi ! 1 CN 1 "H 1 CSI !1 Z*3 CN 11 r--< 1 CO 1 1 pi 1 3 a- 1 1 1 1 3" 8 3 LA 'l *--i pH 1 LO 1 3 11 CN 3* fH hA CN !f--i 11.4 12.7 I 3 rv r--4 --I LA r-i ii )nfid bntlu. r-a449 LU O z 3 m 2 OPERATING UNIT: TYLER PIPE INDUSTRIES, INC. PREPARED BY: date /1 1 Ifi/J U l PAGENC CNpDBNTjAL T-53450 o zr. s! t--ai-- 5 <c in 8--H8 u_ a: ^ cR <c cl. = in 8R A. NtrSAHS B. OPERATING PROFIT 1ST 0, 2ND Q. 3RD Q. YEAR A. NET SALES CAST IRON DWV UTILITIES PLASTICS CONSOLIDATED 135.5 59.1 17.5 212.1 30.6 10.3 3.5 -=r a* 35.3 36.5 137.3 CSI 00 0f-0( cr 16.0 59.3 3.5 16.5 CNI R 59.5 213.1 O') 00 =r CT m B. OPERATING PROFITS CAST IRON DWV UTILITIES PLASTICS g fCONSOLIDATED CON 21.2 11.3 32.8 rn 2.6 ro oo r--i rn oo a- in -a ro oo CO VD .3" -=T CM CO, -=r CNt 15.8 11.6 (.1) 6.7 | -=T rs. cnj mu l 2 OO UJ Q 53 g g 0_ oc LU fzc 3 s i PREPARED BY: OATE: 11/16/81! PAGE NO: 27 IV. 1985 ANNUAL PROFIT PLAN . CAPITAL EXPENDITURES |D. DEPRECIATION 88 --i _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1985 ANNUAL PROFIT P1AN A/F 1985 1ST Q. 2ND Q. 3RD Q. =r O" CM pH pH C. CAPITAL EXPENDITURES r-C D. DEPRECIATION Z*2 Z*3 in r*^ oo -=r O CM nz i-- in eg OT o fn e--H LTV in pH YEAR 1 CO NFEDIJNTIAL T-5J452 OPERATING UNIT. TYLER PIPE INDUSTRIES, INC. PREPARED BY: DATE: 1 1 /1 6 /R li PAGE NO 28 IV. 198E FILIAL PROFIT PLAN | F'CST E. RETURN ON NET ASSETS 1984 OPERATING PROFITS 32.8 NET ASSETS EMPLOYED RETURN ON NET ASSETS 53% =T H rv. .aCM LD -aa PLAN 1985 1985 ANNUAL PROFIT PLAN * I % CLUO [FIDENHA1 T-534S 1OPERATING UNIT: TYIER PIPE INDUSTF PREPARED BY: DATE: 11/16/84 pAQE NO.: 29 1 =r 00 1 o <T) LH ST ---4 R IV. 198b jNUAL PROFIT PLAN _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1985 ANNUAL PROFIT PLAN If . net assets employed F'CST 1 1985 PLAN TOTAL ASSETS 109.4 116.3 LESS: INDUSTRIAL REVENUE BONDS ESCROW ACCT. GOODWILL ACCOUNTS PAYABLE ACCRUED LIABILITIES 8.5 7.6 8.7 TOTAL 62.4 67.4 - n 1 8 NFEDl2VTIAL T-5J4S4 OPERATING UNIT: TYLER PIPE INDUSTRIES/ INC. PREPARED BY: DATE: 11/16/84 PAGE NO : 30 IV. 1985 ANNUAL PROFIT PLAN1985 ANNUAL PROFIT PLAN IV. 1985 ANNUAL PROFIT PLAN1985 ANNUfll PROFIT PI AN J1NQ UNIT:TYLER PIPE INDUSTRIES; INC, PREPARED BY: DATE: /11 PAGE NO m K\ 00 9 f06 Z 'Z 0*81 IV. 1985 ANNUAL PROFIT PLAN __________________________________ 1985 ANNUAL PROFIT PLAN 12/31 1985 H. BALANCE SHEET 3/31 6/30 9/30 12/31 in ai--H N"\ CASH m i-H oo s? CX t"H cn CM --aa-- r-=or ro 3" --i ro ACCOUNTS RECEIVABLE (NET) 18.1 20.5 23.1 23.8 o CM INVENTORIES 18.6 18.0 r-i s 1 oa 3 5s 1 OTHER CURRENT ASSETS | 36.5 31.5 PROP..PLANT & EQUIP. (NET) 37.5 i.--0H" 31.3 41.3 31.1 -3* 31.0 43.6 36.7 31.0 TOTAL 105.5 113.9 119.4 111.0 in i3n- I"* p--1 Oi--Oi pH r-H in 3- CM CONF 1 oo o So CD 5_J 11 cn. rn' ACCTS.PAYABLE & ACCR. LIAB. 12.8 INCOME TAXES PAYABLE CURRENT LIABILITIES 12.9 DEFERRED F .I.T . STOCKHOLDERS EQUITY g | 3.3 ? 86.4 TOTAL LIAB. & S.E. in ^H LA CM uo N"\ O^HO 17.7 2.3 3.3 87.5 113.9 cn cr Q-YH 18.5 3.5 2.3 3.3 90.9 119.4 19.8 3.3 91.6 117.4 in 13.9 2.2 3.8 111.0 LA OPERATING UNIT: TYLER PIPE INDUSTRIES. INC,PREPARED BY:______________________________________________ _________ DATE: 11/18/8*4 PAGE NO.: IV. 1985 ANNUAL PROFIT PLAN __________________________________ 1985 ANNUAL PROFIT PLAN I . SOURCE AND APPLICATION F'CST OF FUNDS 1ST Q. 2ND Q. 3RD Q. SOURCE OF FUNDS: rH pH CM ST in pH 8i 5 DEPRECIATION TOTAL 3.4 3.7 oo r--H 7.2 1.7 2.5 2.7 2.8 5.2 6.2 APPLICATION OF FUNDS: 11 CUR. ASSETS INCR. (DECR) CUR. LIAB. DECR. (INCR) OTHER ASSETS INCR.(DECR) (1.0) (1.0) .=T (0*1) 3 LA (2.0) 3.6 (1.1) 3.0 (2.1) 3 ! 5.9 in pH CAPITAL EXP. (NET) 3.9 2.7 (1*9) 3" CN 11 rM 00 o3 3 3 in SR 11 CM YEAR 12.6 21.3 (1.0) n in CM 3r--( t1 ipH \ CM ! j 11 11 oo 3 CM in pH 3* 11 i ii LONG TERM DEBT DEF. FIT DECR. (INCR) (.2) DIVIDEND PAYMENTS TO C0RP 12.9 TOTAL 1 22.5 CONFIDE*JTIAL T-534S8 2.8 pH 3 rn CASH CHANGE CASH BALANCE-BEGINNING CASH BALANCE-ENDING OPCRAHNQUNCT: TYLER PIPE INDUSTRIES INC. 11 rn m 11 1 1 ----------1 5.2 3.0 6.2 | m rn PREPAREDBY. 11 rn m tI mm 11 3 in p-*H in ii , __ (.5) 3 CO rn CM 11 m rn I oaTE: 11/16/84 ! i Ul Sa. c ONFTD-D53E4N59Tl1AL UuL_ MfO3 oo u5 oo IV. 1985 ANNUAL PROFIT PLAN J. CASH FLOW TO CORPORATE )(ADVANCES /PAYMENTS (NET) ACCT. PAY1ENTS-INTEREST -DIVIDENDS TOTAL OTTER CORPORATE CHARGES FEDERAL INCOME TAX TOTAL CASH FLOW 3" CN "H 5.6 11.7 11.3 29.9 i-- -=r 3S * i--H LL- ____ 1ST Q. 2ND Q. 1985 ANNUAL PROFIT PLAN 1985 3RD Q. (2.0) (1.0) 3.0 LA 1 lA ro -3* i OJ 3* 11 pH pH OJ LTS 3.0 (.6) 3.2 3.2 10.9 5.5 3.0 8.2 97 07 YEAR 6.0 13.0 ' ' 1 ro pH 3" J CT> o j in O KN pH 3" .3" LD | IV. 1985 ANNUAL PROFIT PLAN 1985 ANNUAL PROFIT PLAN IV. 1985 ANNUAL PROFIT PLAN1985 ANNUAL PROFIT PLAN K-l. INTERCOMPANY ACCOUNTS INCREASE IN INTERCO. ACCTS. CASH ADVANCES INTERCOMPANY INTEREST FIT YEAR-END ADJ. DIVIDENDS DECLARED 6 3s: & ioU_ qCL. QC 8L3t- Z<--C) JUNE JULY SEPT. TOTAL 1 LA S*"H' I3A 11 LA S' 83* 11 11 | o LA ! 11 S * j So i ri--nA1 ii i aLA ii s s11 IA 8R sii LA ii ii CLaAN ii s11 2> 8R 11 s a 8R [i aCIAN ii IcaAn *i 11 s 38R 11 3 3133 2500 1 ii Lr.3-Ov* ii rH 5 ii ii s 8 ii s UC--Df1! j s CLAM a 1 3000 3573 TOTAL DECREASE IN INTERCO. ACCTS. 5526 19319 (3500) 6013 7000 FIT YEAR-END ADJ. o DIVIDENDS PAID LcasAi I3A 8 LA S' I 5 o--1 LA ! 11 S 2000 pILAAH ii 11 S CN rH aLA sLA ! ii 3000 s 1s 2000 2500 a CSI ii IA cLaAn ! to *--1 3" 11 l ii ii Is 11 s 1--i \1 s RLA 11 3 OCNO L3 11 raUs3-. ii 11 s I 11 1 ii C/3 C/3 11 S KLD 11 S CLMA S oft 353E46N1TLAL 2 <5r SE _i I6 3089 2083 2070 2031 19278 NET CHANGE IN INTERCO ACCTS 1007 BEGINNING BALANCE (977) (977) T :E 3" i 8 rA 8 IA a 8 ? i (2003) 1 IpLHAA 1 pH 33" rCLA-AH 0 03 ft pH 3" ft IA Lr--Al aa sflAt! a 3fA Q5UJ. as 2505 (969) (500) (1995) (2506) 4993 2476 2476 2488 Cr-M^ (J f--H 3 LL/U3 5 p-H g ST cc a I1 i 11/16/84 TYLER PIPE INDUSTRIES, INC. 1985 ANNUAL PROFIT PLANNING CONFERENCE IV. 1985 ANNUAL PROFIT PLAN L. REVIEW OF COMPETITION Major Products CI-DWV Tyler Pipe Industries, Inc. U. S. Pipe Charlotte Eastern Short Line Foundries West Coast No-Hub Foundries Total Estimated Market Size (OOP) Dollars 1984 114,733 33,000 24,000 41,267 42,000 2557000 1985 iX 112,141 245,000 % of Market Penetration 1984 1985 45.0 13.0 9.4 16.2 16,4 10070 45.8 10070 PLASTICS DWV Tyler Pipe Industries, Inc. All Other Total 17,455 232,545 250,000 16,521 218,479 235,000 7.0 93.0 10070 7.0 10070 UTILITIES Tyler Pipe Industries, Inc. U. S. Pipe Acipco Trinity Valley Union All other Total 59,129 42,236 42,236 18,100 19,306 60,336 241,343 59,305 242.Ubi 24.5 17.5 17.5 7.5 8.0 25.0 10070 24.5 10070 SPECIFICATION PRODUCTS Tyler Pipe Industries, Inc. Smith Zurn Josam All Other Total Grand Total 20,822 19,000 20,000 15,000 178 "751300 821,343 21,108 "737000 795.061 27.8 25.3 26.7 20.0 i2 10070 28.9 10070 # Eastern Short Line Foundries - Griffin, Eastern, Jones & Southeastern **West Coast No-Hub Foundries - AB&I, Anaheim, Universal, and American DATE November. 1984 PAGE 38 CONFIDENTIAL T-51462 TYLER PIPE INDUSTRIES, k. 1985 ANNUAL PROFIT PLAN IV. 1985 ANNUAL PROFIT PLAN M. POTENTIAL PROBLEM AREAS The Potential Problem Areas for Tyler Pipe Industries, Inc. IN 1985 ARE AS FOLLOWS: 1. Level and mix of construction spending 2. Price of scrap 5. Government regulations 4. Industry over-capacity 5. Import competition 6. Energy costs 7. Price of PVC resin 8. Possible labor problems 9. Customer bankruptcies CONFIDENTIAL T-53463 DATE November 16, 1984 PAGE 39 TYLER PIPE INDUSTRIES, II^C. 1985 ANNUAL PROFIT PLAN IV. 1985 ANNUAL PROFIT PLAN N. MAJOR ANTICIPATED EVENTS The Major Anticipated Events for Tyler Pipe Industries, Inc. IN 1985 ARE AS FOLLOWS: 1. Start up of Impact Molding Unit 2. Re-location of Gustin-Bacon to Tyler 3. Conversion to MVS Computer System 4. Additions to Ductile Iron Fittings Line CONFIDENTIAL T-53464 DATE November 16. 1984 PAGE 40 IV. 1985 ANNUAL PROFIT PLAN _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1985 ANNUAL 0. NET INCOME NET SALES 1985 213.1 18.1 2.8 OPERATING PROFITS 16.2 14.6 2.3 2.3 p-H FEB. 13.5 MAY 16.9 JUNE 22.0 3- a" E GO a ScX CJT --i >s-5 o oP"oH APR. i--H CM -T ar f-H MAR. *K0\ r-H cn CM CO cl aCN CO p-H ro f-H CT> JAN. 16.5 cc O' CM ADJ. TO OPERATING PROFITS OUTSIDE INTEREST (NET) (.2) Z'Z 273 11 p-H p"H 11 cn 11 c\ CD in t 11 00 CD CM I1 CD 11 cn CD CM 11 CD CO CM 11 3" CD CM *i----H> CD rH ln in rH 11 ro CD r--4 11 cn in O1 OO 00 p-H fH im CM CN i*H I1 11 in CM fH fH 11 2.3 o H pH o CM cn 11 00 r-H oo 11 13" pH CM H O in 11 ^4 rn 11 a- CM 11 e CN CT in pH p-H a* F-H CN F^ pH o --1 fH in a- CM oo CD 8 noi 8.0 .2 sntiai 165 PROFITS PRETAX/INTERCO INT. 3.0 INCOIC TAXES-FEDERAL S -STATE PROFITS PRETAX l %5 12.6 i I a. <o 5 Q. U<CJ Q. o CUOJ a: a a g (1.0) 11/16/84 IV. 1985 ANNUAL PROFIT PLAN __________________________________ 1985 ANNUAL PROFIT PLAN 12/31 1985 22.0 I 18.3 18.0 fA aa " fA fA 31.0 fA a* pH oo 3- CO s f3A" g fA UD q =T CM fA CD CO pH pH pH oo s? 42.9 31.0 31.0 LA 3 fSA', N pH pH CO 9 26.0 23.8 SEPT. 21.6 21.4 MAY JUNE JULY S fA LA oo r--4 fA CM pH CD cn CM ph ia fA CM pH cn 3" 3- 31.0 LA fA =T qpH q CO LA pH fA . -3" N"Y ST cr>pH pH 3 3 spH KY 3 cn pH fA -=T CM fA to pH rr p--H CM CSI 00pH pH CM S pH fA s? pH rA fA fA s?CD -=T fA APR. a: fA fA 21.C 20.5 19.6 KY.3- pH fA o pH ' 4 H CM 3 fA 3 pH -q- pH 3 3 H s JAN. FEB. 38.3 31.5 39.0 CO pH cn OO r--4 pH pH 3 fA ofH OO 00 pH pH pH 36.5 31.5 37.5 TOTAL ASSETS ACCOUNTS RECEIVABLE (NET) INVENTORIES OTHER CURRENT ASSETS PROP. PLANT & EQUIP. (NET), P. BALANCE SHEET e i ofl 3 1 35 5 36.7 31.0 105.5 108.8 112.5 113.9 119.9 120.1 119.4 120.3 117.4 115.2 9*16 VI O' ITT 3.8 90.6 111.0 13.9 (3.0) 13.9 ! CA T 1IfA3 oo q fM rC OO .--4 --4 CM fA CM fA o CM S LA 1 q hO oo pH rM pH 00 oo Cn f-4 pH pH 04 8 pH q pH pH o pH CM CM qLA 3 cno*--o4 pH fM q cn --4 q3 pH oOr pH pH CM 20.6 21.3 (1.0) 93.5 120,3 20.2 3 cm pH CM fA fA LA CM CM fA fA fA fA CM fA LT\ fA pH CM fA fA LA fA fA CM fA fA pH fA 3T CM fA fA q fA LA CM fA fA 3pH IcAn rC pH cO pH pH -- pH q rC - *o an pH pH pH & cn 82 pH o UcJ 00 88 0L UcaJ. 86.6 87.5 89.8 108.8 112.5 113,9 119,9 120,1 ID fA oo pH pH LA fA CM CM fA fA 16.8 LA fA pH LA 3 04 OJ fA fA 078 fA q 3 LA pH pH LT\ 3 pH 04 IA fA TO qpH C.--M4 CM pH LA 3 04 fA fA ZT LA s pH g3 I i9| | -- g < 1AL OO <c g ofl UJ <x 1 TOTAL LIAB. & S.E. ] DEFERRED F.I.T. LONG TERM DEBT INCOME TAXES PAYABLE CURRENT LIABILITIES OO dt_> . d 0PERAT1NQ UNIT. TYLER PIPE CONFIDENTIAL T-53468 CONFIDENTIAL T-53469 iinn m IV, 1985 ANNUAL PROFIT PLAN _1985 ANNUAL PROFIT PLAN iinn m >- in LA 13 m i iiinnn e pH P-1. BALANCE SHEET CASH ACCOUNTS RECEIVABLE (NET) INVENTORIES HH JAN. 355 iinn m FEB. MAR. LA LA m in LA LA =T fA 3CSI LA LA m H 20957 19528 20370 21080 oCr--Mo. OO LApH 3- pH LO CM CM ID C3M- 9 mCi-M^ iinn fA SEPT. LA rLnA 355 355 pH ma s CSI C^TNJ 3 pH pH 23136 26174 25989 23860 18569 17888 In 3 21961 18351 17987 <_ 8| H 8 H SH 8 H 8 H 8 pH 8 pH 81 81 8 pH 3" 8 .3" fA, a 8 1i pH tAH 8 pH O OTHER CURRENT ASSETS INTANGIBLES & OTHER PROP..PLANT & EQUIP. (NET) 36506 38383 31468 37506 38955 IpAH a pH a o 1CM^ 31350 31314 31160 41290 42273 42759 gm CT IHA R 45675 31010 30976 43601 S> -3" HLA fA 3 1 l 100 30948 1 i ts 36793 43297 8 3 H H pH 9 CM ^H t--. TOTAL ASSETS 108791 113910 119891 120139 120286 119376 117375 117372 115168 111038 pH -3" pH 8 pH 3- 8 H LA 3" 8 H I'M 8 *H H S riiMni a* pH oo CD 3" CM pH ACCTS.PAYABLE & ACCR. L1AB. 17623 19309 19967 20075 18921 13989 606 pH CT> rH LO LO 3" pH INCOME TAXES PAYABLE 1106| 826 1066 1198 1290 853 CO i CURRENT LIABILITIES 12927 15039 pH LO 8 18242 20415 20671 4993 19389 21033 21273 ----- ar*------ 1529 (977) 18602 513 (1490) 1 pH pH pH 8 8 inpH 3 JD <T> LONG TERM DEBT DEFERRED F .I.T . STOCKHOLDERS EQUITY 2353 g | 3362 P ' 86378 2353 3362 86570 2353 2307 3362 3362 ii 86981 87511 2307 2307 3362 3362 89775 1 ra pH 2261 2261 3362 3362 3362 2215 2215 3362 2215 3362 3- 1 B 92101 91630 93983 s 8 2169 3791 TOTAL LIAB. & S.E. -- !105480 108791 112481 113910 119891 120139 119400 120286 119376 117375 117372 115168 111038 1 OPERATING UNIT: TYLER PIPE INDUSTRIES. INC. PREPARED BY: DATE: 1 1 /1 6 /R U PAGE NO.: 44 U ilfi/B k _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1985 ANNUAL PROFIT PLAN LA r-H LA TO oc <c CM LO lO CT) cn in =r OO O LA CO LO LA CM ID o CM TO o LA O OO LA fA fA CM LO LA mCM CM O LA CM fA fA fA O CM u- LA lO fA t 88 O t3 Q. S3 g ss x s i nf O CM TO LO CM IA fA fA LA (A TO t> TO & CL. CzO si s 9p 56 2 >iM U_ d d^ ! TO la TO 6 CONFIDENTIAL T-53471 CzO __I g Ij coZ ZO_ SE o :2 <51uj d<E 9 .a _) Cl. \ IV. 1985 ANNUAL PROFIT PLAN IV. 1985 JNUAL PROFIT PLAN _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1985 ANNUAL PROFIT PLAN I A/F 1985 R. LONG-TERM DEBT 1INDUSTRIAL REVENUE BONDS 1984 1ST Q, 2.3 2ND Q. 2.3 3RD Q. 2.2 1 ro 1 CM I CM 3" 1 3* 1 CN CN OTHER TOTAL 2.2 j O CM CM H3- 1 1 2.2 - i 8* * -- - 8* i t ~' a"" OPERATING UNIT: TYLER PIPE INDUSTRIES. INC. PREPARED BY: DATE: 11/16/84 PAGE NO IV. 1985 ANNUAL PROFIT PLAN S. INCOME TAXES PAYABLE i--H F'CST 4 ADDITIONS PROVISIONS DEFERRED (INCR.) DECR. 13.0 TOTAL 12.8 PAYFENTS FIT TRF/INTERCO. AT Y/E FIT PAID TO CORP. 11.4 t--H SIT PAID AUTD. 1 FIT PAID AUTH. TOTAL 12.7 p~H CO] LlJ i tn 1 ' IBEGINNING BALANCE t isS ENDING BALANCE 8r CS4 -11 CD fA l> CP o LA CD *--H -a- \1 1 1 o o- \ 1 r--I 1ST Q. 2ND Q. 1985 ANNUAL PROFIT PLAN 1985 3RD Q. 2 . 8 3.3 2.8 3.3 1 pH fA 1 Csl 1 1 lA | 11 (1.4) 2.3 3.0 1 1 1 1 \ LA 2.5 3 .! 1.7 (1.1) LA ^H AJ CP 1 p-H i !1 87 6*8 1 1 rH (A I YEAR 8.2 ( .5) 7.7 p--H r--H OPERATINGUNIT: TYLER PIPE INDUSTRIES, INC. PREPARED BY: DATE: 11/16/84 PAGENO: 47 CONFIDENTIAL T- 53474 a o -O' >H ln .cr 4UAL PROFIT PLAN A. NET SALES B. OPERATING PROFIT PLAN 1985 1ST Q. 1985 ANNUAL PROFIT PLAN 2ND Q, 3RD Q, YEAR A. NET SALES 213.1 61.9 68.9 56.6 oo i in \ .=r cn OJ in a- rCCN 3HNTIAL SJ473 _____1_____ B. OPERATING PROFITS o 9.9 30.3 o S . 1986 ANNUAL PROFIT PLAN C, CAPITAL EXPENDITURES D. DEPRECIATION _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1985 ANNUAL PROFIT PLAN PLAN _________________________________ ___ 1986_____ _________ 1985 1ST Q. 2ND Q. 3RD Q. cc 0 2 01 >- C3 3" lO csj Z'Z C. CAPITAL EXPENDITURES cr tn CN cT to <N CN D. DEPRECIATION LA 00 ' 3" cn in cT 3T cr> 3* s Ul 3 o. 5 \ CONFEDEhTnAL 1 53476 OPERATING UNIT: TYLER PIPE INDUSTRIES, INC. PREPARED BY: I DATE 11/lfi/R U 1986 h JAL PROFIT PLAN E. RETURN ON NET ASSETS PLAN 1985 OPERATING PROFITS NET ASSETS EMPLOYED 67.4 RETURN ON NET ASSETS 6 LL. CM .3" .3" 1986 30.3 68.2 1985 ANNUAL PROFIT PLAN l X cc>NFIDENTL/a T-S5477 B Y : D A T E :I OPERATING UNIT:TYLER PIPE INDUSTRIES. INC.PREPARED 11/16/841 PAGE NO . 1986 A. .JAL PROFIT PLAN 1985 ANNUAL PROFIT PLAN . 1986 ANNUAL PROFIT PLAN 1985 ANNUAL PROFIT PLAN `l 67 6*6 H 11 l 1 \ .rr in 1 cn f 1 oo in i--H oo r-v 05 p-H sr 3" CO o CM UD o 00 CNl CM .AJAL PROFIT PLAN G. NET INCOME PLAN 1985 NET SALES 213.1 OPERATING PROFITS ADJ. TO OPERATING PROFITS OUTSIDE INTEREST (NET) (.2) PROFITS PRETAX/INTERCO.INT. 27.2 CM 1 in CM *in 1ST Q. 47.5 1985 ANNUAL PROFIT PLAN o -=r r( 2ND Q. 61.9 3RD Q. 68.9 56.6 =r cn 5.8 p"1 pH oo PROFITS PRETAX s S u_ 1 C/5 i -STATE no NFID T-5 NET INCOME 12.6 ! rH oo CM -3- I 1 3.5 3.7 3.7 11 3" 2.9 CM 1 1 p-H YEAR 234.9 30.3 30.2 6.6 23.6 10.3 L S w i OO <X) pH --t 1OPERATING UNIT: TYLER PIPE INDUSTRIES. INC. PREPARED BY: date ro ha <8i--H> ra ha ha V. 1986 ANNUAL PROFIT PLAN _______________________________ 1985 ANNUAL PROFIT PLAN 12/31 H. BALANCE SHEET 1985 3/31 6/30 9/30 12/31 CASH ACCOUNTS RECEIVABLE (NET) INVENTORIES 18.3 18.0 20.5, 21.5 26.8 20.5 28.9 18.7 20.6 19.2 OJ iH s CN 00 OJ in g m taa- a ol 1 LsU 00 O0 UJ 5^ s?% 1 oj OTHER CURRENT ASSETS TOTAL ASSETS 36.7 31.0 111.0 31.0 42.9 116.4 o h-=ar 31.0 121.8 OJ raa- 31.0 122.3 31.0 114.2 oo in in in ID 00 P"H CTl 1r-H0 11 ACCTS.PAYABLE & ACCR. LIAB. 13.9 INCOTE TAXES PAYABLE CURRENT LIABILITIES 13.9 O' TII 9*06 071 O oo pH in in oo in cc oo 0<c 1 " LONG TERM DEBT DEFERRED F .I.T . STOCKHOLDERS EQUITY !w t1 gw F 2.2 2.2 92.4 TOTAL LIAB. & S.E. OPERATING UMT: ITYLER PIPE INDUSTRIES# 116.4 NC 15.7 in pH 17.2 2.0 2.2 2.2 96.6 97.5 121.8 122.3 .| PREPARED BY:I DATE: CO rn 12.4 2.0 95.2 CN =r pcHn pH in 11 cn c-aT- C'J m s - 11/16/8*J I PAGE NO : 1986 ANNUAL PROFIT PLAN 1985 ANNUAL PROFIT PLAN 11 oo o LH 00 . 1986 ANNUAL PROFIT PLAN | PLAN J. CASH FLOW TO CORPORATE 1985 L (ADVANCES)/PAYMEMTS (NET) i V3 s 5 -DIVIDENDS TOTAL OTHER CORPORATE CHARGES FEDERAL INCOME TAX TOTAL CASH FLOW 13.0 22.4 hd p'i oi 11 11 F\ in i--H 1ST Q, 2.0 0*9 07 0*9 O CM oo 2ND Q. o fH 1985 ANNUAL PROFIT PLAN -r o in LTt (1.0) i--4 11 CM 3" O CM rn 3.5 6.5 3.7 3.6 9.3 CM pH in ln in -=r 11 YEAR 13.8 25.3 00 po--i } \ cONFH5ENTIAL T- 534S3 | _l_l OPCHATINQ UNfT: TYLER PIPE INDUSTRIES# INC. PREPARED BY: I DATE: 11/16/84 I PAQENO.: . 1986 ANNUAL PROFIT PLAN1985 ANNUAL PROFIT R AN ..UAL PROFIT PLAN 1985 ANNUAL PROFIT PLAN cc. $d V. 1986 ANNUAL PROFIT PLAN M. INCOME TAXES PAYABLE _______________________________ 1985 ANffNlUUAAL PROFIT PLIAAN PLAN r--1 1985 1ST Q. 2ND Q. 3RD Q, ADDITIONS IV 1*5 rv NO IV 11 PROVISIONS DEFERRED (INCR.) DECR. 8.2 (.5) 11 11 TOTAL 7.7 3.7 3.7 d Cs NT cn -- 1 (.3) W79I7TT 87 O'OT fv tn 11 H C/5 2 FIT TRF/INTERCO. AT Y/E FIT PAID TO CORP. SIT PAID AUTH. FIT PAID AlfTH. TOTAL . 8.9 ONFn T. NET CHANGE O 5 2 i ENDING BALANCE * 11 05 i 05 11 00 ii 11 oo i-H ro CO 05 LA 11 j PA ! 11 in 11 11 11 U5 ii i' y -CT C-j 11 ro 11 (.7) 3.7 10.7 3.7 ------------1 (1.5) / o d 1 ! ii 11 j ITS i-- \L s? i 1 | ix 2 & 0 UJ 1 UCi a. y S3 1 g a. L--aUsj I cot*FnjnAL T-53tfI T--t cn LA t--1 5 * CSI \ cn -=r ri SQ CM ^r CONHDBJTIAL T-534 B -V I k. LONG jE PLAN 5 YEARS A. NET SALES B. OPERATING PROFIT ACTUAL 1983 1985 1985 ANNUAL PROFIT PLAN FORECAST 1987 A. NET SALES 192.0 212,1 213.1 251.8 B. OPERATING PROFITS 25.2 32.8 30.3 32.7 278.3 36.3 I OPERATING UNIT: TYLER PIPE INDUSTRIES. INC. PREPARED BY: DATE: 11/16/84 PAGE NO.: 60 5 YEARS 1985 ANNUAL PROFIT PLAN LH -=T / CD =r a t-H ^r .=r fH -=r \> CcOn CoMr VI. LONG -,GE PLAN 5 YEARS 1985 ANNUAL PROFIT PLAN ACTUAL E. RETURN ON NET ASSETS i 1983 1985 OPERATING PROFITS i | 25.2 32.8 NET ASSETS EMPLOYED ! 60.1 62.4 RETURN ON NET ASSETS 53% FORECAST 1987 30.3 32.7 68.2 71.1 73.4 47% 36.3 78.9 46% } \ cONFD3ENT1AL T- 53490 B Y :| o per atin g u n it :TYLER PIPE INDUSTRIES* INC.I PREPARED PATE: 11/16/84 I PAGE NO : ,,JGE PLAN 5 YEARS- 1985 ANNUAL PROFIT PLAN m in in CD RCO CNI ai r-T 0fv0. m 8 o co o in rn in o R Cji .R 0 in R 01 CO CT> o R oo CD CM s in m CD 00 om oi 00 1^ ID in =r in cD R oo a- m rov. oo CD in R o6 CD s s 86 * & 8 GO UJ CONFIDENTIAL T-Sil operatino uwn: TYLER PIPE INDUSTRIES, INC. I_ _ _ _ PREPARED BY:| DATE; 11/16/8H 1 PAGE NO 63 -VI. LON*, .ANGE PLAN 5 YEARS 1985 ANNUAL PROFIT PLAN Z LCU/3 a! 8_5i t Z3 j -<GE PLAN 5 YEARS 6. NET INCOME |ACTUAL 1983 IET SALES 192.0 OPERATING PROFITS 25.2 ADJ. TO OPERATING PROFITS (.1) sr 1-- 1 | o PROFITS PRETAX/IWTERCO.INT. 25.1 6.5 PROFITS PRETAX 18.6 INCOME TAXES-FEDERAL -STATE 2 8.0 NET INCOME 10.4 r>A CM 1TIAL 3 1984 212.1 32.8 32.7 25.9 10.4 15.2 3" CM 3* CM OO u5 t*\ 00 CSI LA KJ\ OaO: oLL- i--l 1985 ANNUAL PROFIT PLAN 1985 213.1 234.9 1987 251.8 30.3 32.7 264.9 1989 36.3 3" -3 fH (.1) I'L l 20.8 8.0 30.2 6.6 23.6 10.3 i iiT-HH. 32.6 6.7 25.9 1 6.8 27.6 36.2 6.9 29.3 12.9 j cm CM 11 11 11 3" to OD !"*--t 12.6 i 13.3 PREPARED BY: 15.5 DATE: ^ L0A3 s U1 as. IB -jMGE PLAN 5 YEARS 1985 ANNUAL PROFIT PLAN OPERATING UNIT: TYI FR PIPF INTCISTRIFS. INr. 1PREPARED BY: __________________________________________ 1DATE: l l / l k / f t t H b /PAGE NO., o E LL. in 8 2 in zd 1 2 !o l2 1-- y<x ACTUAL J. CASH FLOW TO CORPORATE 1983 1 2.3 -DIVIDENDS TOTAL OTHER CORPORATE CHARGES FEDERAL INCOME TAX TOTAL CASH FLOW 15.1 cn C4 CM CO C4MT in K\ in i7 -3" CNJ Oic--nOi i--1 5.6 11.7 11.3 29.9 671 07 cn cn oo m cn ii ii ii 1985 6.0 13.0 22.4 1987 5.8 8.0 13.8 10.7 25.3 1 5.8 11.0 16.8 11.6 29.3 i M 5.9 12.0 12.3 31.1 5.9 13.0 18.9 13.1 33.0 - ti* VPIDEN7U. T-J34 J LJ___ 1___ 8 OPERATING UNIT: TY1ER PIPE INDUSTRIES. INC. PREPAREOBY: DATE: 11/16/84 PAGE MO: 6 8 -VI. LONG I. .oE PLAN 5 YEARS 1985 ANNUAL PROFIT PLAN -T i--H *--1 -VI. LONG K jE PLAN 5 YEARS ACTUAL L. LONG TERM DEBT 1983 ST i j- cT INDUSTRIAL REVENUE BONDS i CN OTHER TOTAL ST <cxr>> cT f--1 VI 1 1 iH ! 1985 ANNUAL PROFIT PLAN FORECAST 1985 1987 2.0 i i 2.4 2.2 2.0 CD 1 lO 1 r--1 00 1 CO 1 rH 1 ^r 1 i--^ - 5 1 CONFIDEJ4TIAL T-53498 I N C . | B Y : |OPERATINGUNH: TYLER PIPE INDUSTRIES, PREPAREO DATE: 1 1 / l K / f t i i 1 PAGE NO.: ro z0cr0r> csl -VI. LONG i. .oE PLAN 5 YEARS 1985 ANNUAL PROFIT PLAN ACTUAL I M. INCOME TAXES PAYABLE 1983 1985 ADDITIONS PROVISIONS DEFERRED (INCR.) DECR. 8.2 13.0 (.2) 8.2 (.5) TOTAL 8.0 12.8 PAYMENTS -3" (A ii rH CSJ =r --1 ip---i^ FIT PAID TO CORP. SIT PAID AUTH. FIT PAID AUTH. TOTAL 8.2 i 12.7 8.9 .3- tA \ iH i-i i OO LU >- s' Cd >-- u_ r--H 1 t NET CHANGE BEGINNING BALANCr nn ENDING BALANCE 87 i r-H ! i I ii FORECAST 1987 10.3 11.3 10.0 11.0 (.7) 10.7 (.6) 11.6 I ii ii j 0*01 11.0 ii 11 * \! 11 11 ii LA 11 11 1-- OO LA ! i 12.1 (.3) 12.3 11.8 i \ 1l 11 1989 12.9 (.3) 12.6 12.6 l 1 04TUlL 499 3 1--( a > CD aAUCJ <aaU<Jr. y cL/li CK 1 a! ua. tz: 3 s i s* PAGE m VI. LONG I. -oE PLAN 5 YEARS 1985 ANNUAL PROFIT PLAN I 1 r--i 1 1 1 1 i cn at i ld i I ze! > Y E A R S5 1985 ANNUAL PROFIT PLAN O . CAPITAL GAINS ACTUAL FORECAST P. INVESTMENT TAX CREDIT 1983 1985 1986 1987 CAPITAL GAINS 1 LD 1 1 ZT 1 ID ID <D INVESTMENT TAX CREDIT FQ 5 S a. * <o \ c DNFH)ENTlAL T- 53501 W9T7TT or Ll 5 6 ft a Lal: t. s p 5 K r>^ V 3T I e! a: LA 8 3* 8 GcnO LA e! o 5 > 8 i <> CN l 1 q , TIMING DIFFERENCES AND ACTUAL DEFERRED TAXES 1983 TIMING DIFFERENCES- INCREASE (DECR.) INCOME: DEPRECIATION EXPENSE (.2) TOTAL LESS CURRENT ITEMS TAX RATE CHANGE IN DEFERRED TAXES DEF TAX CHG (CR) BEG OF YR. (2.9) DEF TAX CHG (CR) END OF YR. (3.1) (.6) (.2) (3.1) (3.3) CO fA 1985 (.9) (.9) (3.3) lO a- LA IA =T o i-H FORECAST 1987 (.6) (.3) LO -=T fA (.7) (.7) (.3) (5.0) *--1 -=T :onfT]D51e50n2 i1AL 1OPERATING UNIT:JYLER PIPE INDUSTRIES. INC. PREPARED BY: DATE: 11/16/84 PAGE NO 7U TYLER PIPE INDUSTRIES, INC. 1985 ANNUAL PROFIT PLAN VI. LONG RANGE PLAN - 5 YEARS ? R. Key Influencing Factors 1. Governmental a. Housing Programs b. Sewer and Water Programs c. Health and Safety Act d. Environmental and Ecological Standards 2. Growth in construction spending in real terms 3. Percent of DWV market in cast iron, plastic and other materials 4. Other products sold by Tyler using present distribution CHANNELS THAT OFFER ATTRACTIVE RETURN ON INVESTMENT OPPORTUNITIES 5. Competitor production decisions 6. Import competition 7. U. S. AND WORLDWIDE SUPPLY OF ENERGY DATE CONFIDENTIAL T - 53503 November 16. 1984 PAGE 75 SPECIAL VU- GRAPHS CONFIDENTIAL T-53504 H I. 1984 PERFORMANCE REVIEW1985 ANNUAL PROFIT PLAN s u_ <_xi bc A. NET SALES CAST IRON DWV-TEXAS VARIANCE 1ST Q. 17.7 20.9 3.2 2ND Q. 22.0 22.7 1984 MID-YEAR REVIEW 20.9 22.7 LA j- CM 3RD Q. 1 i (2.1) 22.0 V IZ ACTUAL 1983 20.2 20.7 00 FE3 u_ 5=:> b B. OPERATING PROFITS CAST IRON DWV-TEXAS PLAN VARIANCE J 1984 MID-YEAR REVIEW t LD TDEN" 53305 2.0 2.6 2.6 CM CM ACTUAL 1983 OPERATING UNIT: TYLER PIPE INDUSTR1IES, INC. IA 3.3 3.2 3.6 5.0 3.6 3.6 2.7 2.6 PREPARED BY: PE CM o LA o 3" 0a0- rA L0A0 20.3 21.5 YEAR 87.5 CM o r"H o 19.8 82.0 9.7 K\ lD t CM f-i cn r-^ PO r--t LA CM 12.3 2.6 10.1 DATE: 11/16/84 PAGE NO.: uo in I I I . 1984 ,<FORMANCE REVIEW1985 ANNUAL PROFIT PLAN A. NET SALES CAST IRON DWV-PENN PLAN ACTUAL/F'CST VARIANCE CT tn 00 zr IX) 1ST Q. 2ND Q. 1984 MID-YEAR REVIEW zar O =T -3" 3RD Q. lh ZT ACTUAL 1983 B. OPERATING PROFITS CAST IRON DWV-PENN PLAN o OO 00 o ID ID rH in or 3" u_ ____1 <E g VARIANCE o DNFIE T-3 o pH ^H pH ID OO *"H cn or 1984 MID-YEAR REVIEW U. ACTUAL 1983 B Y : D A T E :OPERATING UNIT:TYLER PIPE INDUSTRIES. INC.PREPARED 11/16/84 CNJ in 0 LPv id ^H in iA 1 o in ZT ID 00 oj U3 KO ZT NN or CT> rn po O rn in CN * \ oo o CNJ / OJ LA YEAR 22.0 l___________ 27.2 24.8 22.0 ] p*GE NO R E Y I E V JH I, 1984 i j<FORMANCE 1985 ANNUAL PROFIT PLAN -rr O if 1-- CO A. NET SALES CAST IRON DWV PLAN ACTUAL/F'CST VARIANCE 26.2 i 30.6 2ND Q. 32.6 -3" oo LA CN fA iT Ln rA 11984 MID-YEAR REVIEW 30.6 3RD Q. 35.7 36.5 32.9 ACTUAL 1983 28.8 30.7 32.1 - 00 ID CO if in ID cT rn 5 u. --i 3 t3 <c B. OPERATING PROFITS CAST IRON DWV PLAN VARIANCE IQ HDD* nAL r-ssw ID O LA iT ID 3" rn 1984 MID-YEAR REVIEW ACTUAL 1983 OPERATING UNIT: TYLER PIPE INDUSTRIES, INC. PREPARED BY. CM iT in 00 if CO oo if Cf--vHl o f OO 30.3 33.0 2.7 29.8 30.1 YEAR 135.5 10.7 128.7 121.7 ' OO r--* * a ln --i if CM 21.2 zr u5 971 ln ro 3.9 15.5 DATE 11/] .3OO ID PAGE NO CAST IRON-DWV CUSTOMER TONS SOLD TOP TEN STATES 1982-1984 A/F 1984 PERFORMANCE REVIEW 5 CM cn CM rn lO CO I'M o in CM cr--n1 IM in' if CM rn fn CM rn -3 to 3" OO CO CO cn CM CM* CM 8 O co CO LA CM fA CM CM1 nT CS1 cn CT) oo CO co CD oo if to PO cn CM C2M CM sfQ iC--HN 5 rLCxHN. Crr^-Pvs oo<-o+ Cm--Di fO--oOi um0*0\ iCcoToi 0CM3 rC o rC CP if in if to if ti-nnT 6< cn ccnn CM .3" SQ COMO CD octono in UD ICLATNi Nr--~H\ 01 rv* oo o<--t tmfi 8.3- &cn co m m CinM 8m 2o2o iinn o R CON' r-N. RCM 88 iionnr moo in tmo S r-T in in t<\ cinn cinn cn cn a. cn cn <ar coe cn s* 8 22 <x cn ^2 CONFIDENTIAL T-53508 0*9 -h cn -3" cD in ZT c> zf LD o zT ZT 3- A. NET SALES SPECIFICATION PRODUCTS PLAN ACTUAL/F'CST VARIANCE 1984 MID-YEAR REVIEW 1ST Q. 3.7 2ND Q. 5.3 3RD Q. 5.3 ACTUAL 1983 B. OPERATING PROFITS SPECIFICATION PRODUCTS PLAN in rM CM in ZT pH =r pH in 5 US_lj 5 VARIANCE LDEN1 53509 pn in ZT in mpH 1984 MID-YEAR REVIEW P ACTUAL 1983 OPERATINGUNfT: TYLER PIPE INDUSTRIES, INC. PREPAREDBY: DATE: H/16/84 PAGENO o 13--=CT cn H - ZT OO ID CM HppH tV ZT 3- ` ZT ZT mCD CM zr in LTi CH oo in o CM CM 18.3 18.5 17.7 ro ia OO S o-=r U5 ia CM CD O IA IA i-H 8R C <3 8e ia IA CT> Cv. IA LA IA LD .=r cr -3" -=r LA LO OO', ^ cm IA =f\ -3* B-S AIA IA IA IA IA S'? 1^LO OO CM 3l^ LA to o 8LA 00 CD CM CM U"S lA CM s % 8 sIA IA CD CM 3" >--1 IA OO Q IA 1^ 00 CD -3* OCD LA LA LA LA IA -3" LA -3" CO LO CM T.P.I SPECIFICATION PRODUCTS THOUSANDS OF POUNDS SOLD TOP TEN STATES 1982-1984 A/F 1984 PERFORMANCE REVIEW CONFIDENTIAL T-53510 B u_ S3 S: P iHD i B LI. oq UJ S' => s 5__i P ZD 111,198*, cRFORMAMCE REVIEW 1985 ANNUAL PROFIT PLAN A. NET SALES 1ST Q. 2ND Q. VARIANCE pH 10.1 11.8 13.9 15.6 r\ r--1 1984 MID-YEAR REVIEW 15.6 00 oo rH 00 ACTUAL 1983 12.9 B. OPERATING PROFITS 00 PA m cT rA LO pH PLAN u5 pH --1 CO)TDENTIAI T-515 1 VARIANCE LO r--H 1984 MID-YEAR REVIEW r*"1 r--H ACTUAL 1983 operating unit: TYLER PIPE INDUSTRIES, INC.I PREPAREO BY: ofA rA PA -=r a: t-- a roi 971 3RD Q. LO 13.4 -3" > 11 YEAR 59.1 LA LO ro LA LA p--t LA 3- LA pH LO rH 13.9 13.0 57.7 =r rH - CN cn 3- - rA o rA JT 2.5 2.4 11.3 OJ p-- rH 2.3 10.3 00 1.7 _________________________ | DATE: 11/16/84 I PAGE NO cn PA CN UTILITY DIVISION FITTINGS CUSTOMER TONS SOLD TOP TEN STATES 1984 PERFORMANCE REVIEW oo 3" cn cn CM A A 00 im! A A CM CM CM CM sC n e-e A csi 00 CNJ pm cn A A p^ A & a oo CT) A A A CM CM CM CM e cm CM A 88 3T 3T.a. 3: OOA pm CD cn Pm A cn CD cn A A A A CM CM CM e A =r A 00 s 0*--0< CM A JT ar-* A Pm 3" cn A A A CD pm a A (A CM CM r--1 r-H cOrO> C*--HIN oo a oo cn <5? A (A oo 9a cm AA oo cn a CM CM A --l CM A CM Pm i--1 --1 CM fH i--H ^H A 3" s rH rM .3" A CM 3" Q in oo CM r\ cn cn CM 3" a a Rl si--< pm O' hO r-H CM 00 -3" A r-H I'M -H ^H r-H A A LA LfT CM --H r--i *--( 00 CM rM. AA CO OO o c_a_i:) o_1 s Q OC OU_-1 g _> A D= s: 5 aac <C 5 A CO s O0-0A0 *-!S 5: oo So A CONFIDENTIAL T-flJB 10.7 (55.1) 6.2 a Otncn =r cm cn orAiA CM UO --I cn cm cn r^tdrsin =r rocM CM SR LA CD OO Ct--M1 CrDCrC NON C--O UNt--001 631,915 (238,288) 393,627 5,908,368 432,366 6,340,734 6,540,283 194,078 6,734,361 .--* r\ co c*o nOCODOMN hj(n z CD CO <_> foAo i co UJ CM S ~ CT> r- DC CO = CO gg: --' i_> CO UJ co cnI SI LU CM --0-_=_ ItcnI cr 00 p LU F fA OO 1 CN CD LA <--I 1 LA CD cn O -=r -3" O--1 r-M3 00 cn f--1 n. [A co cn UN CM r^. 0 CD CO <D CM g> -3"( <2cr5n> I< iinn K cn cm CM LA CO 3 ON UN fA --1 LA good 1--i -H ' CO<L5A? . o =r cm (n !R > CM fA 00 co La la cd fA fA LA 3T ( CM O < la jt < IA NO -3" cr Sen. ,si 00 u5 a-Qcr t--. A iH 00 cnr^. fAOOCM JT LA f-- 1--^ ' sfA cq c OO COLDO LD cn go UN |o5] RRS CM 3T fM RSu! cn CD LA CD CM ON cmi^on CN LA fN fA fA a- cn fA INCNQ .3- 3r cn cn --i o CM fA Stz3 co CD 00 tz CO a if OS a! a od a! 1a 51 Q_ CO 03 oc CO a u to ^ CL-t-- iS CO CO <c CD 3C 8 I coNFnjEN'nAL T-53513 NO-HUB ACCESSORIES* Do m e s t ic Export Total Customer TYLER PIPE INDUSTRIES, INC. SALES COMPARISON vm Q_?Q_a^ vs <3-24-84 143,814 1983 1984 EXPORT TONS 8,900 2,861 1983 1984 CON*lD*'nAL T-51514 Hk CT> S3 8 8R 8 3 en CAST IRON DWV & UTILITIES EXPORT SALES AS %OF TOTAL SALES 779 957 672 cmr 969 8 f3M CN ro^H --i 8 rH p-H SCNB CO a cr OO Cmn rO-M3" <=r SO 8rn o(rMM fm tooo rH -C3O" pH s1--H CCMO UD iinn i"H oCM ^H pin CO OO CD tr\ o CO CO o 1--H i-H CM in CO CM to ooc <_> 3 8 s --i CO CD in 8pH .3- m ^H CM CM CM rn LH CO oo O CM CO cr> cn a? TYLER PIPE INDUSTRIES, INC. -SALES COMPARISON JOE CRAIG YTD 9-29-84 VS 9-24-83 (DENVER) e o oacocc sfoAio- CM LA cn IOO CT> cCnMI oo oo S' IA CM s IA a IA B fA CM CM IM 00 fM cn IA fA LO fA CM o LA fA CM 3 CM g u5 fH s s NO-HUB ACCESSORIES* 512,558 483,621 28,937 ^ir 65.2 121,045 00 fO fM. in rvT 03 LA H CM coecoe: CO CNM3 * -- QC/3 2llj C/3 fAO O. CM 03 5d. C=/33 K\ 00I =r, CMI K3 3- IA SR CO LTl r-x $in co 00 03 CM (A C_J 03 iRi O 00 S3 03 03 & L0A3 CM R A CM co SQ 185,752 306,797 NO-HUB ACCESSORIES* confidential T-53517 19.4 69,793 <0 CO 10 oo ro in pH g 88oo ococ K 5 Rno 3" NO o*o Mg no NO 10 NO =oDo <_> noaoio ICN) cn uo <80 NO B S3 CM cn NO a- oao- f S (0 cf> in rH NO N-* cn $CM 359,215 429,008 NO-HUB ACCESSORIES* * CONFIDENTIAL T-5J518 <ZCD HO" 2" Oc3nOT 8 r-i Q Ll_ rA 3 QC s 111.198*, -RFORMANCE REVIEW A. NET SALES PLASTICS PLAN 1ST Q. LO in P U_ <_CJ 5 VARIANCE 1984 MID-YEAR REVIEW in zr ACTUAL 1983 Z2 (_> <_X1 B. OPERATING PROFITS PLASTICS PLAN VARIANCE h--` o rtAL 5 zr ZT m m r--H 02 o zr ZT Qz in Csl CNJ m o 1 r 1 1 LA in (2.0) 5.9 o oo ZT =r ZT zr 00 rn -=f 1985 ANNUAL PROFIT PLAN 3RD Q. YEAR 8.2 5.8 26.5 3.0 | 17.5 (2.8) (9.0) 5.4 21.3 6.5 o hA r--1 111' 1 1 LA ZT CSI (.2) (.2) (.6) (.2) (.7) V IZ i rn CO 00 <x. n iinn r^. o LL- 3* < c8 i--l CM &Z rO LPi Nn CN tD t= i :8 NOOO^i Ft 1----l 11 in rM 00 hPs i-m oo CM pH --1 --i & r--i =r CM ID CN CN CM CM o s-1 m cnMT inm 1 1 r--t CN in *--! CM =T DO o CM m ooID pH CM r--( i--i 1--1 CSI s sop3H" CN CO fH pH c3D* c*--n4i t oQo 83* 8 CD CD <oC -- <t >2 Qs s o OO S Q o<_> 8 o=or --oo OO Q PLASTIC DIVISION THOUSANDS OF POUNDS SOLD PVC PIPE AND FITTINGS TOP TEN STATES 93 1984 PERFORMANCE REVIEW mI s &-S K\ NO 3- LT> ID CM j 3" m s iD CN Nn CM CM s S'? O U_ =T ID CM LH ID oo CM o UD LT\ CM nlO pp-HH in a- a- 1--1 CN 8 no D s CLON 8cn 8 ID <CoxMo> c3n- CN N3"n** Ci--NH \r\ i-H ol pucHnn cCnN Om s U_ -3" 3" cn rH l3h* CLODD' CrC^DNv 8o fCc--Mni aCM CcNr 3o* 8 cI3Nn" s m CN p-H i"H pH Hp ---1 CM CM sOO S <rct ^O a: ^ --oo 8--> 8 O_i 8 oooxo ~c3e se oo OQ_ L--U o*xo. Z- ctoo fei oo <s o "TotT" CO oJ -=f UooJ HOQ--OC | B s z3 1 i s I I I . 1981 .RFORMANCE REVIEW A. NET SALES CONSOLIDATED PLAN 1ST Q. , 41.4 B U_ _l ZD t<3r VARIANCE 6.7 1984 MID-YEAR REVIEW ACTUAL 1983 B. OPERATING PROFITS @ U- <c :0 1 B 5 3 PLAN VARIANCE 1984 MID-YEAR REVIEW 5 | f FID T-as o j ACTUAL 1983 CO LA LA 03 rH -=r 03 icnr 3" LA S 0m3 C-=Trt f-H cn o<36- CO i---=TH o --1 cc cn 2ND Q. 53.9 2.5 03 LT\ LT\ co a- 1985 ANNUAL PROFIT PLAN o 3RD Q. YEAR 60.0 57.5 (2.5) 49.5 50.1 204,8 212.1 7.3 53.1 192.0 8.5 25.9 11.4 32.8 2.9 OO 03 8.1 28.6 5.7 25.2 LO >00UccJ <0UCQC..I p 1 N"\ cn ocor CO ui o< cn 03 t cn OO cr cCN3I PAGE NO.: e K 1e FQfH t--i CNJ 10 1 s8 in in SR a- iv. in S' o in CO tv CN in i --1 in r--i rv IV CrnSI 10 * ss ^r 00V CO r-H ^crT> CN o .zr 00 5 r%. 00 o r*T 1.-- e cn CSI cn s e o in ii--n4 8 i-4 iin-i rTMi 8 8cn .=r CM CTJ 8 8in r\ in 5in in 00 --H oi--^ V* TYLER PIPE INDUSTRIES, INC. CUSTOMER SALES VARIANCE ANALYSIS (IN THOUSANDS OF DOLLARS) CONFIDENTIAL T-53522 TYLER PIPE INDUSTRIES, INC. DIRECT MATERIAL COST/TON TEXAS & PENN DIVISION BY QUARTER 1982-84 1983 S 9 St \ \' \ \ \ \ \ cn ?' / / iLcTni \ \ cn s. / / / / CONFIDENTIAL T-5UZJ 3 8 J< v> >3 a 31- 9 3-- 9 9 CAST IRON DWV - TEXAS DIVISION ANALYSIS OF FACTORY PAYROLL Y1D 9/29/84 VS. YTD 9/24/83 TOTAL FACTORY PAYROLL-EXCLUDING TRUCK DRIVERS AND PLASTICS PAYROLL (1) TONS PRODUCED LABOR PER N.T. AVERAGE NUMBER OF EMPLOYEES HOURS WORKED AVERAGE HOURLY RATE MAN HOURS PER N.T. ACTUAL YTD 9/29/84 $ 26,719,868 144,998 $ 184.28 1,912 2,804,162 $ 9.53 19.34 ACTUAL YTD 9/24/83 ' S 23,306,581 134,140 $ 173.75 1,925 2,587,578 S 9.01 19.29 (1) INCLUDES VACATION PAY AND HOLIDAY PAY. CONFIDENTIAL T-53524 CAST IRON DWV - PENN DIVISION ANALYSIS OF FACTORY PAYROLL YTD 9/29/84 VS. YTD 9/24/83 TOTAL FACTORY PAYROLL-EXCLUDING TRUCK DRIVERS PAYROLL (1) TONS PRODUCED LABOR PER N.T. AVERAGE NUMBER OF EMPLOYEES HOURS WORKED AVERAGE HOURLY RATE MAN HOURS PER N.T. ACTUAL YTD 9/29/84 $ 2,297,784 23,099 $ 99.48 192 273,288 $ 8.41 11.83 ACTUAL YTD 9/24/83 fi $ 1,947,088 19,204 $ 101.39 183 244,387 $ 7.97 12.73 (1) INCLUDES VACATION PAY AND HOLIDAY PAY. CONFIDENTIAL T-53525 TYLER PIPE INDUSTRIES, INC. CI-DWV OPERATIONS COMPARISON NORTH PLANT 8 lO CD 9 CM 9 CM a. 38 mO3 C3 8 &CM CM 33 CM OO in CD 3 in CD m in CD ID CM 3 l_n In 3 CD LPl 2 D_ m A CD Q 8 ^-1 00 88 8 3* Pm r--H 8 3 cn CD 3^ cr .3* m r--t V -3" --H CM <H CM 001 ml g a 1GO CO CD CM a e in s CinD CD A 3* <_> CD CD OO Pm CM a_ 8oo LQCO CM I'M 3 CO 8m CD CM 3TCD OO CD CM a ld -=r CM CM =r CM cm 9 3-cr--di cn 3- oo *--i Pm f: s 8 oo im a CD 3 CT\ 8 m g cD sO p^ CM 8R 3" s m 5T m 3 r--H LA CM CMl 2? r--i ml a SRI3- CM r--4CM Pm CM cn CD LA LA CO CD CD CM CD LA iCnD OoO iOnO oo oo LA LO CM P^ CM LO p-- pH CM CM CM CM 3" 3" 3" 3" aA A CD CM 3" CM 3* 3 CM 3" 3LA 3' " H CD 3" A CM o in OO P^cn LA A I'C CN 3* LA in LA v> V* 5 8 83" A in CM LA K A rC-D| oo r> A -H 4* v> CD CM CM A| a! SRIfO--1 LA A 8o OO OO m (M oo C*--Di CO cd oo <D 3" CM s 8m r--1 3* 3 m in f 1 CD o CD CD CM QC >oc- r c=Ec zo _ 5 a 2 CJC cc && sQ z CM 00 m 33 CONFIDENTIAL T'53526 TYLER PIPE INDUSTRIES, INC. CI-DWV OPERATIONS COMPARISON SOUTH PLANT ,298 g tA tCoM CtoM to g! g c3.=p-r 3=TT =r -33T" C3 CD CM CP Df-' CP CP p OO CD CM in* aup LA fi LA UP UP CD a. & g aia 3 CNJ CM --l r--H LA CD tR a gLA CD 3 3 IA a SI3T CM CN OO i CP ofel oo o fRIrA CO CP Ci M'1 CP LA CM OO Dp tA CM cr; la 3T MX IA CM r"H Q- oo a 3tQ LA CP tA cn IA r-%. pH CD A LA i--"iIA 3 3 CS1 QC >cc- <qcE ** s 5 69 a: CtoM K OO OO 3 S tft tR R .3" 3 3 3T oo LA tA CD CP r- --i tv. -3- CO CD LA 3 3> CM 00 r> o CM IR 1 s3 CP CM LA 1--H V* s>lLA CM LD "H a CM --H fSI \RS8 LA A 3T A IA 3 LA LA -h UP 3 in. R 00 --H rN OO 333A *-H QC Q Z CM 3" O 3" 3 CN CN CN CN 3* 3* 3" 3 oo f-n -- --i 3 3 LA LA 3 3 33 i38TtA CP -3- CM JO LA CM [A rs i^. CNJ i A LA 8CM 3 UP CN CO NP i 8 tRtM MX CM 3 LA s lO CD 3*11 a CNI i--H Sll s S a3 *-H 3 A 3 CD LA LA LA CD '--i & aor UP CNI CP LD CN UP LA 3 3 MX IA oc at--c LU O ~> E tA CONFIDENTIAL T-51527 TYLER PIPE INDUSTRIES, INC. CI-DWV OPERATIONS COMPARISON MOLDMASTER 36 47 oo te SR LA s 00 OO 3" 00 3" co fN IM 3" 3" R RrLaD 3" 3" OO cn CM Ro tM --i CfinO'1 CM g V* CM O i s? iS 8 aC--NH CM *--H i! o G>O- hACP AJ CM fAl 800 cr> cp CP .3- CP CP rN IM fN 3- 3" 3- s UD fN* .3* 3" 3 LA fN CO f OO 8 fN O nR a R r-~l LA o--1 CO CM V* LTV LA 8 8*--H CD ha (M 88 fA CO 5? 3 r--4 v* V* CD <o 8 8AJ 8CM .3" 8 8LA t--i CP o--t ha V> 8 8r\ LA **--4 fctn! fA fH 3" 8 3cn cn 3" CO F-1 LA CM s 911 811tF--o1 ci--oH CP-DH CM CM FAlCOI CM CM CMl col fAl 88S LA lO CO r--H --4 -H 5 3 Q_ o -a- (A 38 (Ar\ cp LA -3- OO CO CO O CM IM CM CM OO LA CO CM CM CO O LQ OO 3" l7S o r\ ra 3r CN CN CN g LA rC CO -3- pH CM fM CP cp CO CO CM LA i--l t--, =r ONl P r3--1 fMha CO CM CM im 1 oc =r s ci CO 69 <er QC ce 6O oz CO 5 CM fA GQNnDEjnAL T-53528 TYLER PIPE INDUSTRIES, INC. OSHA/ENV1RONMENTAL EXPENDITURES 867 o S A 8R CO FC cO Cc=Mnr CN i--i ^ o CM > GO S2 g: OLxJ GQzO: GO ZZ CO 11 arvi im CD OO CO OO D_ <x a cti im a S k' ANO CO KCO LA cn co a OCM OO W -=r A *-H; OO no co cn NO CN) A A3 0-=0T CSC occ 2 OC oo cn A CT> 8 <5 a_ CONFIDENTIAL T-53529 1985 BUDGET TYLER PIPE INDUSTRIES CAPITAL EXPENDITURES BUDGET 1984 PERFORMANCE REVIEW 9/29/84 ORIGINAL AMOUNT DELETIONS ACTUAL EXPENDITURES 1983 1984 1984 FORECAST TOTAL 1984 BUDGET ORIGINAL AMOUNT 4 * ACTUAL EXPENDITURES 1984 a 9/29/84 FORECAST FOURTH QUARTER CARRY OVER (A) 25 ROAD TRUCKS (B) ALL OTHER TOTAL 1984 BUDGET - IMPACT ORIGINAL AMOUNT ACTUAL EXPENDITURES - 1984 FORECAST EXPENDITURES - LAST QTR. 1984 TOTAL $ 8,000 1,000 5,978 684 358 $ 8,000 $ 9,000 2,797 2,540 1,663 2,000 $ 9,000 $ 5,000 3,085 1,915 $ 5,000 CONFIDENTIAL T-53530 CM A A LD OO <p <NI TYLER PIPE INDUSTRIES, INC, PROFIT AND SALES COMPARISON 1973-1984 PERFORMANCE REVIEW $ 33,374 cn A OO a s CO oo 88 8 8>--i eg 3" OO CD A LA LA CP <--I OO CD 88CM pH CP 01 iv i-H LA r-H if oo iv oo IV. Ln CM LA CM 8 CM oo s 6-3s: LL. OC LD tv LD LA iv iv IV LA iv iv OO LD iv rv oo K >- LD iT iv iv LA fv oo & oZD i a oo <r LlJ >- IA LA CM rv LD OO CP CM 88 CP LTV LD -3" rv 3 .3" oo a o CP rv s LD o p*"H -H rv rv. UD s CM CP A LD i--1 LD p-H or NA pH in cr 00 CM A iX r--H o A lD pH p"H rv an A 00 8 i--i CM rv V 3* LD CN A OO m rv. cn _ o CM eg 8RCP ID "i 3" CM IM -=r LA CM OO CM CP LD 8 00NA pH LO CM A lD LA h-- 04 ifO CM IA LA CM IA rv CM CM NA C>l LA CN NA OJ LA fA LA eg 4P CL. CJD &3LL. CC cnO iv. DLlJ CP iv OO LD CM OO CP LA cn rv rv rv rv l OO LA rv IV. CP IV. 6-3 >- o 00LD CM LA A CP CM QC <X 8 8A CM IA CP o eg LD LD 8 pH A CP*P1 O' ir CM LD LD iT CM ZT rv A CM o OO LD cr CP s 00LD CP CM eg OO o oo o O 4X CP CNI p--1 CM pH r--1 78% hc K c S'? LD rv s iA CM oo 25 cvp CO tv rv rv. LD IV A V -3" rv fC CP n <p CP <J> CP CP cn CP CONFIDENTIAL T-53531 1973 1983 MEDIAN- 1984 BASED ON 11 YEAR MEDIAN IV. 1985 ANNUAL PROFIT PLAN1985 ANNUAL PROFIT PIAN 11/16/84 CAST IRON DVJV CUSTOMER TONS SOLD & MET YIELD 1981-1985 8 (3 ) or3v.- 3- KN CM CP s CO 3- iLnO <in5 in in B-e 0 ua m m CtCOO g IX 0IX & CM LO s m . S1- rx rx UO LO 5 &-e 6 CT> Cxi 00 =r CM CM LT\ .3" 8 8cr .3" iH 00 CO OO V* 4* *> v* i B in cn in 8 fn cn CP m f--1 rn 00 CM 00 CM --1 m a 0m ca CM IX m co IX S scr rx Ij 3T -3* >- 4r* v* v> 8 sm rx CT ea in 00 0 rn sin 0 CD Cr--M4 1--^ t 00 rH *--1 U_ =31 < Z!u 8 c0m0 o> 0m0 cn 3- 8 in 8 1^ 1 rn _ II (T> i CM 6~S O Jl 1--4 &2 &-S 04 ud *=r m c0m0 m00 0-=0r i0n0 < tillcn *--cf4> cn cr^> 5 5-S --CM ^ J 8 g? 8 8 CO LXU acft oC> S 0<_0c1 Zj> 00 GO LU 02; OC o * CON?D85nAI' TYLER PIPE INDUSTRIES, INC. CAST IRON DWV SALES TO CUSTOMERS a IA 8 LH IA tn S LA CR O o o o LA & oo rov'. o Ocsi LA &_ rO->O. O s o E3 A <_) ACN cor^Oo. co-=nor o-s=r A CR s00 o o3" oA3- Co--SotI O-A='r! 3oA" -3- CT> CSI OO CD A 3* oooo cC lT 00 00 SSy colo. oqo_ Q. LU 03 0d 03 >- s 2S --I l> (A (A t--1 UD IA IA SCJM OA =r o Csl A OO A CSI A OO A CSI A Cr-xji cc>ni oo -- csj oo oo a: oo oo >- ti ?= s CONFIDENTIAL T-53534 Q_ I UJ go; oon OO Z Q. OO OCDU- S__MO OO 1 -go*--oo t-- ooo e<_lW;caC---J(l<Zx -- _J oo --LL->od OZ> tac__)jLsoU: h--m- COI-- on ra LO pH K\ NO LO CD CT LA Jj f--i p^ >- V> *= V* v> oHn- <_> CQOH a_ =r Q_ C/0 . fA CO CD o o OO r-H *--H -=T LA o OQ CN o o CN LA no I'O CM ro p 1 p*H " 1 *--1 6*5 6^ 6- B-S p-->s -=T CNI p*H 'w' t""H 6-S &~e B~S B-S P--- p-- P--* 1--H OO LA '---' '--- 1 ----' y~ LL. __l < Q. r--1 CN ia -3* LT\ CO OO OO 00 00 cn cn on cn cn p*h --i pH pH p--H CN NO =r LA UJ OO OO OO OO o CD cn CD cn z f--l p"H --l --i 1 1 1 i o *-H CNI A =r o OO 00 OO OO CD cn cn cn B p--i p-H i-H p-H C0N^ SPECIFICATION PRODUCTS SALES TO CUSTOMERS (IN THOUSANDS OF LBS) CONFIDENTIAL T-53536 UTILITY DIVISION SALES TO CUSTOMERS a 3" a m in 8 a 3 CM a P-- GO *"1 888 cn rN 1 'c fA r--< --i g 8p. ^ g 3 CM ID iH g88 3s --i ia i--H LA --i fH 888 CO CP ID oo cn in o o--I ri--nI V* v> in -t o in LA s CNJ LA I 1 o CD U_ 3" a m . o o CNI <<Dc 3" 8 00 CO in in goo o <--i 8 OO CP in. cT IA iH cD CD 3" --i *-H LA -- r--i ON 8 rN -H --i CNI la LA CIND, CO CD 3 3" LA *--1 fA CP CN) 88 fA o r-"t r--1 i--H Q min t<-- ina- m 8 rN UA V* v> oQC"oY> iC-n3D". V* V> CD CM 8 cn o d ID CONFIDENTIAL T-53537 (4)% 1% 105 % 11111117 FITTINGS CUSTOMER TONS SOLD & NET YIELD 1981-1985 21 CNJ oo SIla CD cn Z3" or--i 65 55 S'? LA CM CM (11)% SI 0" 00 r-v 8 LO cn LA 3- -zr LA 1984-1985 Lel>J 8 8 Q_ CM ro J LA g s OO 00 CD CD o<inx. I CONFIDENTIAL T-53538 3R o LD -=T *-- OQ s s? LD iH r--t CM fM LA cn IV. LA CO ai R fA s ia LA 8 ID i 00 c*"n"1 r*n lO -=T zr * ) 3 (D LO NA 8 aLO (A V ID PLASTICS DIVISION SALES TO CUSTOMERS .3 6 cr> CM 8 oco CM rA LA s r""1 00 JT f--H 8 LA LA 8 n-s. 3T oo 8LD LA CNi <=c CD 2LO CNI NN OO oo 8 CM o *1-- 8ST LD 88 r "1 CD ld CO CM CM CO s fe CO CO LD ca ECO o_ u_ oo LD CNI NA CM O LD -3" CM V* V) cn .3=r cm cm J o2= ZD Cd CO LD o_ I E LU >- Q_ Ll_ CAST IRON DWV-TEXAS DIVISION MANUFACTURING EXPENSE LA r^. LA LD LA LA CM CSI iLoaOo LA sz CM Zll LA s CcnO LO a LO CM fc* S0R0 acn CM CM im. CCMD 00 o cn) f--i OO *K5Q LA v> ccmn cn cm crAo "1 CM LA im. jt !l nR cr o JT cn CM (A --I CM LA Ocn 00 CM CM IA r--* CM 3 CrvM. CM LA 3" CM v> 8!1 cr rH A 00 oc, , 3T 3s i 1 CM 00 LA IA Q CM O CNI ^ i CM CM CM 3" s88 hs. LTN LA CM <x. IA IA LA OO CM ' '--i CJ CM OO a CO r-H -=r ro -zr CM ** a ohVO1 aa 1--1 v> UegJ oo { a eg fe 5: <5 3- CM OO OO CM --I i--I CM CM lO rA ld OO CM '--I -- CM LA CM qc=--qXcUozoJ; QC a <x O Q QQ t 1 co^ir CAST IRON DWV TEXAS DIVISION- MANUFACTURING EXPENSE ANALYSIS 1981 - 1985 r*N r*N rg LH 8CT> 3ro s CMZT ZT v* fa* fa* fa* or--ot 8 CM 8 CNI 03 i--4 CM CM hO CM S fa* V* V* fa* fa* cc a! LH hr--O1 O Cr-NHI o--oI cQ 00 iC--HM fa* fa* fa* fa* fa* 6-S *9 S'? ^ 03 ! 'I &-S CM 1 LH r\ b b- B~e --t CNI J -3" oZT oo LD 00 O') -fact fa* fa* fa* </* Q--J B-S B-6 B-S =T O UN 6<^*s B^ B~S OO KN 03 (3)% 1984-1985 -=r CH. U_ <. ^ 5^ -3- lPi a8 8 I 3>- 030> CO> oCTo> CONFIDENTIAL T-53541 TYLER PIPE INDUSTRIES, INC. ACCOUNTS RECEIVABLE AVERAGE COLLECTION PERIOD e n CM LA r-H CD UoJ 8 CaOr Cnsol --H 8 oo 8 rloh 8 oo LT> 8 CT> K\ 88 LTV l> cr CJ LT^ hn CNJ LH -=X .3" 00 LhOO ign? hn CNi v* 8 m 8 mo mUJ cn r-H NiinnO 0m0 --H ID l-v no cn CM 8 SQ 8m CM V V, S<_ ) QC co cn como cmn m cn o como csi </ v> cn in J--Tl -33T" 3" O aT CM oa ac kt: 1E 8 oo LD 8 oo s __ I UJ CaD: = OO CD no 8 UJ CD x S 8 QC UJ Q_ UJ 8 >-- CD 8 oo UJ 8 oo id <x oox .=r CD 8 o CD > 8 8 oo UJ oo <r <00 an 8o CONFIDENTIAL T-53542 9 cd cd O CD WJ CM cn 0r--01 e m LA sr LA rv. ia CM lO cd SRCD fA m IA CD ST orv! CD s CSI CM MK LA LA ST oLA fA CM CD CD lO fA fA CD 00 LO LA CD N Ci-hD cr> ** IA LA CM CM LO CD cn ia fA TYLER PIPE INDUSTRIES, INC. SIX YEAR SUMMARY CONFIDENTIAL T * 51543 rA OO CM cm on LA 3 CD CO CM CM cor^ CO CD OO on --t O '--1 LD LA LA CM CM CM > O' CM FINNS' K>3" fA fA IC 4 CM CM LA p-n. r>s, tn 8R ssssa CM CM CM CM CM 3 rA cm 3 co co oo cn fA LA CD CM 3 CD CD LA O O Cr--M4 CM CM CM CM CM CnI ccrAno 30 000 cm--i cm*--i 3 LA CM CO CM CM CM --i O 8 CcoM cm LA LA cn LA CM rA rA C\i o CM CM CM cn cIMn rA CM LA rA3- r3A cn >--1 r3A" fCAM CfAM CM CD fA fA OCMOQ A fA A A <--i rA O 00 3 LA IM gTlM IM fA A CM CM CM OO CM (M LA cn --t rA 3 LA LA fA rA rA CM CM C*O CrAM 0300 O --i CM ia rA rA cm CM LA CM A 3 CM oCMo cCMd CoMo OO CpNoI o o oo oo O O LA odoi O O LA O oodd LA LA LA OO LA on cm cn a 3 imALAors 3 on oi cm on 3 --i O O O LA cm cn cm oo o cn OO CM cn cm on o LA TYLER PIPE INDUSTRIES, INC. SALES, OPERATING PROFIT & CAPITAL EXPENDITURES FIVE YEAR PLAN 1984 PERFORMANCE REVIEW rA fACM CO O CM O CM cn oo cm r--, CO CM *--i CD ld cn o cd CM CM CM Q r-1 cn r"H 00 co <r toMn (< cm< oo cn r--H i rA 3 oa: i oo opt ion on o o oo cn cd 3 CM CM on Q --1 CM rA 3 o ^^ M^ GO <sQ 52 CD fM OO OO cn Q >--I CM IA 3 O M r-H f--1 ^ ^ 4 CONFIDENTIAL T-53544 CONFIDENhal T-S3545 ATLAS POWDER COMPANY 1985 ANNUAL PROFIT PLANNING CONFERENCE PRESENTATION CONFIDENTIAL T-51546 m mATLAS COMPANY 1985 ANNUAL PROFIT PLANNING CONFERENCE COMPANY ORGANIZATION O ATLAS POWDER COMPANY 1985 ANNUAL PROFIT PLANNING CONFERENCE COMPANY OBJECTIVES 1. To Strive for an Accident-Free Environment 2. To Maintain Plants and Facilities in a Safe and Efficient Manner 3. To Be the Industry Leader in Product Innovation and Technical Expertise ToA, Achieve 15% Operating Profit on Gross Sales while Maintaining a Minimum of 30% Return on Net Assets 5. To 15%Achieve a Average Annual Growth Rate in Sales 6. To Increase Productivity through a Work Environment in which Employees can Achieve Company and Individual Goals 7. To Be Recognized as the Industry Leader For: Quality - Service - Innovation CONFIDENTIAL T'535fl 12/05/89 1985 ANNUAL PROFIT PLANNING CONFERENCE ATLAw POWDER COMPANYm l: 1!m1 1 1! i1 ;1 i1 i II! 1 1 11 ! ii 1 ___ !___ ! | 1i jj i ! ! i 1 ! j ti t ! 111 ii 1; i j sj j Actual 1983 Plan F 'cast O' ; II r--i =r oo cn oi 1 i Cr--N4 ! ! or i | | W^ 1 ill r ______ j '_3 ! i! | 32 !1 1 ! j ! | UD cn! i ! i cc i cr i--i j i | !^ i 1 1 ! ^cnj j ii 3rM MM MM ln ; j ;1 III' jI i i oc Ml i\ > AAowsMA I 1 cn a? Operating Pr o fits 1984 PERFORMANCE REVIEW Net Sales Operating Pr o fits Ne t Sales 23 oX wK i AO CONFIDENTIAL T-53549 w m ATLAw POWDER COMPANY i m PERFQRMANCLREVIEW.1985 ANNUALPRQFIT PLANNING CQiNERENCE CONFIDENTIAL T-51550 r1 I t CO LO B 3" CNI j i| CONFIDENTTIAALL T-53551 198A PERFORMANCE REVIEW Return on Net Assets 1 S cn mcsi m a iy m ATLA_ POWDER COMPANY 1085 ANNUAL PROFIT PLANNING CONFERENCE Actual 1983 ) iLL. CT> r--i p! ! h" 1 t 1 CO LD LC 3* i-1 O6 3" LO 3" Ln K 3- Operating Pro fits 12.0 Ne t Assets Employed Return on Net Assets | ! ! i ATLAS POWDER COMPANY , ,,BcP.,,D . ,, t0 ]2A5/W II t5 cn NN ro O l oo CNI ai i o_n cn i o I Csl CD i N"\ CD CNI 3 CO DO UJ CUH I' a: 03 oO < Q_ Q_ al CO <_) -a: lot;vi: Si: CONFIDENTIAL T-53552 <E i j1 9(XPc9 a0. co m pn l ai 1984 PERFORMANCE REVIEW Ca p it a l Expenditures (Net) At la s Powder S--u-b s id ia r ie-s--- ----- To t a l Sig n if ic a n t Projects 2.3 - 2.0 ' IPr o f it mprovement Ex p a n s io n IEnvironmental mprovement Replacement Sa f e t y New Products Un s p e c if ie d Purchase o f: M/A Assets WSE Assets I 'Bagging Pl t . n t l -Cast Primers Kinepak -Trans.Eq u ip . E.Kentucky -Relocate Mag. Site s PR -Power AN EM: Un s p e c if ie d To tal __ 1 og C-J pn i--1 a- a- i--1 CNI i--4 _<Pl O pn a- c hn t i--1 i i! ro i1;! i--1 i ATLA POWDER COMPANY 1985 ANNUAL PROFIT PLANNING CONFERENCE LL_ -=T ! j i--1 F 'Plan cast 5.6 Plan 2.9 -=T r--t 6.9 8.3 2.9 2.2 3.8 2.2 (1.2) 2.9 UD i--1 T"H 3" f-H i--1 CT OJ 03 a; rv. i--t LO pn Pn ar i--l pn pn ln i--t pn a- r-H lh pn m CVJ CT LO 3" i--l 8.3 &oWsC&w :l rv. a- cn C^j b |I <tLL--CUi. ; LT\ LO i--i r*v. p--i UD OJ i-H i--l to LD CNJ i--l i--H in H C-0 LTi 3- J8R P Ur OO i-H OO i--1 i ji (2.3) a< & | CNJ!1 [! i' - S' i; |j ATLAS POWDER COMPANY 1985 ANNUAL PROFIT PLANNING CONFERENCE 1984 PERFORMANCE REVIEW Potential Problem Areas t 1 A. The Potential Problem Areas for Atlas Powder Company in 1984 were as follows: 1. Coal Industry Strike 2. Failure to Increase Selling Prices 3, Economic Recovery Falters 4, Non-Electric Lawsuit B. New Potential Problem Areas Since Last Annual Review: 1. Failure of AG Season 2. ANFO Margins in Subs 3. Deterioration Permissible Prices - Dupont Cut $59 to 4. International Market - Bulk Transport AN - Columbia Bagging Operation 5. Nitro Nobel Relationship 12/05/84 ATLAS POWDER COMPANY 1985 ANNUAL PROFIT PLANNING CONFERENCE 1984 PERFORMANCE REVIEW Major Anticipated Events B \ A. The Major Anticipated Events for Atlas Powder Company in 1984 were as follows: 1. Non-Electric Introduction 2. Introduction High-Tech E B C 3. Emphasis on Service B. New Major Anticipated Events Since Last Annual Review: 1. Nitrogen Turnaround 2. Bulk/Package Plants 3. Austin Accident 4. Industry Unrest -- Sale Ireco -- Sale Gulf Explosives -- Change Control Austin 5. Non-Electric Plant - Reynolds 12/05/84 ATLAS POWDER COMPANY 1985 ANNUAL PROFIT PLANNING CONFERENCE 1984 PERFORMANCE REVIEW Disappointments & In 1984 Atlas Powder Company met with the following Disappointments: 1. Fatality - ARDL 2. Delay Non-Electric Program 3. Crane Accident - Joplin 4. Down-Time Chemicals - Big Freeze 5. Powder River Explosives Performance CONFIDENTIAL T-53556 12/05/84 ATLAS POWDER COMPANY 1985 ANNUAL PROFIT PLANNING CONFERENCE 1985 ANNUAL PROFIT PLAN In 1984 Atlas Powder Company had the following Accomplishments: 1, 2, 3, 4, 5, 6, 7, 8, 9, 10. 11. 12. 13. 14. 15. Shut Down T.T.S. Purchase Nitric Acid Plant Ohio Subsidiary Commercialize Non-Electric Double Capital Expenditures Ohio Emulsion Plant Austin NG Agreement Settled Austin Lawsuit License Farmers Supply Pruchase/Sold Wayland PRE Turnaround Bulk Program Increased Productivity Cast Primer Manufacture Decentralize Purchasing a CO 12/05/84 NUAL PROFIT PLAN ATLAo p o w d e r c o m p a n y 1985 ANNUAL PROFIT PLANNING CONFERENCE CONFIDENTIAL T-53560 1Q5 AiNNMAI PROFIT PLAN _ _ _ _ w m .ATU POWDER COMPANY 1985 ANNUAL PROFIT PLANNING CONFERENCE s:: ;! CNI ATL POWDER COMPANY 1985 ANNUAL PROFIT PLANNING CONFERENCE LoQo o> LPl cq inI CNI Pi jnI NO o NO co I o ICO 3CNI CNI <nq zxx> =r NO cn NO o NO CNI CNI UJ LLI < OOCQ C/5 UJ Ul cuucr 03 M in cuu cn B s CONFIDENTIAL T-53561 JiU ALPfm LM J___ ATLAS POWDER COMPANY 1985 ANNUAL PROFIT PLANNING CONFERENCE 1985 ANNUAL PROFIT PLAN , Potential Problem Areas The Potential Problem Areas for Atlas Powder Company IN 1985 ARE AS FOLLOWS: 1. Competitive AN Capacity 2. Price Cutting 3. Labor Negotiations - Reynolds CONFIDENTIAL T-51563 12/05/84 ATLAS POWDER COMPANY 1985 ANNUAL PROFIT PLANNING CONFERENCE 1985 ANNUAL PROFIT PLAN Major Anticipated Events t The Major Anticipated Events for Atlas Powder Company in 1985 are as follows: 1. Discount Program 2. Siting of Non-Electric Plant 3. Moving Headquarters CONFIDENTIAL T-53564 12/05/84 1VE YEAR FORECAST W m ATLAo POWDER COMPANY 1985 ANNUAL PROFIT PLANNING CONFERENCE r j I i-H Cs, I =r LCNH1 K * 1--1 sK O 6*S s N"N j1 C'J o6 A S TFIVE YEAR FOREC ATLA. POWDER COMPANY 1985 ANNUAL PROFIT PLANNING CONFERENCE i cn r-H l Return on Net Assets i Actual 1983 1985 1987 CO CD S C=Or Operating Pr o fits 19.5 21.9 cr ccrr\ K--1 Net Assets Employed 57.0 . H 8 Return on Net Assets i--H 1 23.9 CD CD K ! j rKo S:i i| & w <> O - 6 1I. O u c ; w cc a CONFIDENTIAL 1*53567 t0 " "AT, GUM,T: ATLAS POWDER COMPANY ELVE YEAR FORECAST ATLAv. POWDER COMPANY 1985 ANNUAL PROFIT PLANNING CONFERENCE ATLAS POWDER COMPANY 1985 ANNUAL PROFIT PLANNING CONFERENCE LONG RANGE PLAN - 5 YEARS Key Influencing Factors 1. AN Over Capacity 2. Price of Ammonia 3. Pricing A. DuPont Lawsuit OOKFTDO^nAL T 53569 12/05/8A HALL-M ARK \ CON*pENTlAL T-53S70 /&-<"/ > HALL-MARK ELECTRONICS CORP. 1985 ANNUAL PROFIT PLANNING CONFERENCE PRESENTATION / * "1^ l x a $ * I2 o <2 u *5 tn U KN oz O cl Z O< CL Q. L? 0 _l < CL < 5 ID Z Z < >z- < o. IT) 00 O' 5 O u < x HALL-MARK ELECTRONICS CORE, ^ 1985 ANNUAL PROFIT PLAN/W*' COMPANY OBJECTIVES / A. Hall-Mark's "Evergreen" Objective ^ \ \ To BE THE MOST EFFECTIVE BUSINESS ENTITY WITHIN THE ELEC TRONIC COMPONENT INDUSTRY IN SERVING THE CUSTOMER NEEDS WHILE AT THE SAME TIME OPTIMIZING THE ECONOMIC RETURN TO OUR STOCKHOLDERS; AND TO OUR EMPLOYEES. B. Specific Points ^ 1. TO BECOME A LEADING NATIONWIDE DISTRIBUTOR IN TERMS OF PROFITABILITY; RETURN ON ASSETS; SHARE OF MARKET AND OVERALL INTANGIBLE POSITION OF INDUSTRY RESPECT^ 2. TO ACHIEVE SPECIFIED MARKET SHARE POSITIONS IN EACH INDIVIDUAL INDENTIFIED SERVED MARKET - SUCH MARKET SHARE FOR EACH OF OUR MAJOR PRODUCT GROUPS; MAJOR SUPPLIERS; AND TOTAL MARKET. "MARKET SHARE OBJECTIVES TO BE RELATED TO TOTAL MARKET SIZE; HALL-MARK'S TIME IN THE MARKET; AND HALL-MARK'S CORPORATE OBJECTIVES.*^ 3. TO YIELD A RETURN ON ASSETS EMPLOYED CONSISTENT WITH Tyler's overall objectives.^ 4. TO CONTRIBUTE TO AND PARTICIPATE IN THE INCREASE IN THE PERCENTAGE OF; ELECTRONIC COMPONENTS SOLD THROUGH DISTRIBUTION. ^ CONFIDENTIAL T-53573 Q_ locrno\ \ 1984 PERFORMANCE REVIEW y LLIJ-- s <=--3 \l \ - 'V I 1 CT S3 CM "'.____ PlanF 'cast 22.9 o_ _l s* a8 25 25 X' CNI a jg LrcyO~fi\ >k i sd S2] \ 2\ hLcU~o CO y \__ \_AJ ' X cn cn E=Sr iR CM Operating Pro fits - / Net Assets Employed ^ Return on Net Assets ^ s g y 35 zc3t--c 25 y 1 u-- ] < o j ti \ ! 1 1 j PREPARED BY X a -; cuo ! cH--r a y jj 1 CONfidemu I111l *z w ----- l1c WING CONFERENCE \ >V > 0V \; Of 1^: o LA S ooj LCAM LA ii \lv 1a CM LL '\ o sa r--| i fj CL CN \ 'V o ivl LA i>4 1%'j ANNUAL PROF Accounts Re c e iv a b l e (Ne t ) / Inventories i Prop. Pla n t & Eq u ip . (Ne t ) ^ Ac c t s . Pa y . & Accr. L ia b . / i >- . -i '! N` 5a ^ i-- "s o V UD L(^ \ 3 y at- i &o Ha S & y Qixi t- <_> ijj z2Oa 11 W.i \ CTi U5 I r-v. C--Xlt i| \ \ i 1 ! !i 1 i | i i i aoDCili1' u cc)NFT1-ES,>J5a77v7iAL | 11 <; o CONFIDENTIAL T-53578 / HALL-MARK ELECTRONICS CORP. 1985 ANNUAL PROFII PLAN/V/rf^ 1984 PERFORMANCE REVIEW / Potential Problem Areas/ A. The Potential Problem Areas for Hall-Mark in 1984 WERE AS FOLLOWS: ' 1. Sustaining nation's general economy/ 2. Product shortages and allocations/ 3. Stretching of the systems, procedures and PHYSICAL FACILITIES TO ABSORB GROWTH.^ A. Transitional problems due to change of MAJOR SEMICONDUCTOR FRANCHISES^ B. New Potential Problem Areas since Last Annual Review: ^ 1. Sensitivity to potential significant rise IN BUSINESS FAILURES. ^ 2. Oversupply - Pricing Pressures x 3. Special Supplier situations ^ C. Review f Current Status of Potential Problem Areas for 1984: /' 1. Economy has held up most of '84,^Beginning to level, ^ 2. Product is freeing up. x 3. Relief of stretch in '85;./ 4. Time will resolve, 5. (Bl) Monitoring marginal accounts more closely/,.- , 6. (B2) Aggressively Addressing. / 7. (B3) Situations to be resolved by 3-31-85. / CONFIDENTIAL T-51579 -94 *11-21 04' HALL-MARK ELECTRONICS CORE. x 1985 ANNUAL PROF 11 PLA 1989 PERFORMANCE REVIEW / Major Anticipated Events ^ % A. The Major Anticipated Events for Hall-Mark in 1989 WERE AS FOLLOWS: ^ 1. Expansion to Southern California, with re sultant posture of Hall-Mark by year-end of being truly "national" in scopes 2. Continued gain in market share in traditional MARKETS AND CONTINUED SOLIDIFICATION IN 1982- 83 EXPANSION OPERATIONS, ^ 3. Final planning processes to carry Hall-Mark through "$500M Objective". / B. New Major Anticipated Events since Last Annual Review: NONE ^ C. Review , Current Status of Major Anticipated Events for 1989: ^ 1. Progressing as planned. / 2. "Share of market" has continued to grow, / 3. "$500M Objective" has been finalized. / CONFIDENTIAL T-53580 11-21-tW HALL-MARK LLLCTRORICL CORP. 1985 ANNUAL PROFIT PLAN^/W^ c&. ' 1984 PERFORMANCE REVIEW / y Disappointments / I ! 't In 1984 Hall-Mark met with the following Disappointments:^ 1. Our computer capability limited growth, lowered PRODUCTIVITY AND RESULTED IN ONE OF THE COMPANY'S TOUGHEST YEARS. / 2. Product availability (allocations) in new markets IHURT PENETRATION. 3. Product availability (allocations) in established markets hurt growth. 4. Inability to expand "nationally" with major semi conductor LINES. / ^5. Major vendor problem in systems product. CONFIDENTIAL T-53581 /2-L iJ IWM* HALL-MARK ELECTRONICS CORP. 1985 ANNUAL PROFIT PLANMNir 198A PERFORMANCE REVIEW/ ^Accomplishments \ In 198^4 Hall-Mark had the following accomplishments: ^ 1. Continued assimilation of significant growth in A VERY SHORT TIME (WHILE OVERCOMING THE COMPUTER INADEQUACIES). ) 2. Exceeded industry growth. J 3. Increased penetration in established markets. ^ A. Became "national" in scope. ^ 5. Strengthened position with major vendorsJ CONFIDENTIAL T-53582 rx-u-YO il-TT-Si J.IW> ANNUAL PROFI BANNING CONFERENCE 10& ANNUAL PROFI ANNING CONFERENCE ) o< ANNUALri'i'j PROF. .ANNINO COfFERENCE 1- r-i Ha l l -Mark Electron cs Corp . ! NX i? D- tD uCS5J 159.5 Ki-H 3 CT lj u_| J <-J 3 ND CO \ "BO CT oCNj1 CT 8CNI i| _ _ LJ_ _ >, CD O'! CO 1" X CCST1 Operating Profits / Return on Net Assets / l szcJ 1,C-ofi !1 acL>L <CUCC"cOOOJ hUJ=n _ 11111i j i, 1i ____ : I -ONFCDEKT1AL T 53585 i I ------1------ PREPARED BV OPERA T .M , U N IT -- Jrw> ANNUAL PROFI ,WNING CONFERENCE m ANNUAL PROF /ANNING CONFERENCE 4 CONFIDENTIAL T-53587 - r .'IHa l l i ark Electronics Cor / PREPARED RY / 1A OATt /HALL-MARK ELECTRONICS CORP. 1985 ANNUAL PROFIT PLAN/W^6" CoaIrtfit*** 1985 ANNUAL PROFIT PLAN \ Potential Problem Areas I . The Potential Problem Areas for Hall-Mark in 1985 ' ARE AS FOLLOWS: / 1. Economy - Overall/Electronics Industry. I 2. Oversupply - Pressure on Gross Profit Margins 1 . MIS3. - Inability to use computer to fullest extentJ A. Properly and INTELLIGENTLY responding to antici pated INDUSTRY FLUCTUATIONS OVER NEXT 12-18 MONTHS. 5. Profitability of systems business.x o. Asset ccntro: in flat market conditions. 7. Importance of new locations gaining "Share of Market". / CONFIDENTIAL T-53588 HALL-MARK ELECTRONICS CORP. / 1985> ANNUAL PROF 11 PLANVaV^ y 1985 ANNUAL PROFIT PLAN J Major Anticipated Events ^ i The Major Anticipated Events for Hall-Mark iVi 1985 ARE AS FOLLOWS: ^ 1. New on-line Data Center/ A. Completion of Design and implementation of "BEST" ON-LINE COMPUTER SYSTEM IN DISTRIBUTION. B. Design and implementation of asset management SYSTEMS ON NEW COMPUTER.1 C. Productivity gains from computer expansion/ 2. Reach $500M in Sales - a corporate milestone/ 3. Construction of new Corporate Headquarters Scheduled completion 1986. ` Other Significant Events fop. Hall-Mark in 1985 ape as follows: ) 1. Move up 1 rank in Top 10 Distributors. ^ 2. Attainment of S100M in sales in expansion areas (N.W., S.W., N.E.) / 3. Solidification of "all location" franchises on /major (Top 10) lines. 4. Attain $100M in sales in Top Vendor (Motorola). /5. Expansion in "NICHE" markets. CONFIDENTIAL T-53589 /;-(-if Ha l l -Mark ism iod urn iAi:j HVLYEABLHEECASI Ha h -Hark Fi fctrqnics Cora*. ANNUAL PROFJ WING CONFERENCE/ l'i::S ANNUAL PROFT ANNING CONFERENCE HALL-MARK LLLCTRONICS CORP. / 1985 ANNUAL PROFIT PLAN/^^ QfitlfftZrtce, / LON6 RANGE PLAN - 5 YEARS / Key Influencing Factors / 1 1. Overall national economy, / 2. National Priorities (Politically sensitive)^ 3. Technology growth capability of electronics INDUSTRY. / A. Electronic distribution's ability to handle INCREASED PRODUCT COMPLEXITY. S' f5. Tyler's long range objectives, 5, Hall-Mark's management capabilities and Smotivation. CONFIDENTIAL T-53594 tI* RELIANCE LlJ QC LU Cz--_> Oo oz CD ,, <r oroo rvj > -- _j 0_ o oCT Lz(_J> LocLr >ze- S Q_ CL. U--JJ --cI Ou ce: xj NV v.% in 0<0n U_ Ll_ < 1-- OO 1-- UJ _i z a < lu a z a lu o -- -I -- CO h- h<cr UcJr cl- Dar uj Q. LU "O O MOM Q. > CT O O 1-- ZX LU J-- Q-- --X 0. oo oo 3 LU o <r CT Q_ --3 <3 LU U 03 > --I < 1z- 3a< --Zo LaU -- Xzcj l-- oo -- <zcr aLcU_r o<_ zMCoMO-ozM**M* cI<-r czo uj UJ u t MLHzMU- MLuUM a. Cl. ~ O--'W-l CM > CD >- CO (-- M-<1M _<J MuM OX UJ UJ oao. ox CO zo 1-- t<- cr LU oa. CM Ci<cacOLo--_Ur>r. oUchcU><<_oJJrr--> U1--J XMM OO aLU X cd LU ' -- 3 C_> 00 < Z LU > <z CoT_ Q_ CONFIDENnAL T-5J596 RELIANCE UNIVERSAL INC. 1985 ANNUAL PROFIT PLANNING CONFERENCE COMPANY OBJECTIVES l 1. TO BE A MAJOR SUPPLIER IN CAREFULLY SELECTED MAJOR STRATEGIC MARKETS OF THE COATINGS AND RESINS INDUSTRIES. 2. TO ACHIEVE EARNINGS GROWTH OF 15% PER YEAR. 3. TO MAINTAIN A MINIMUM OF 30% RETURN ON NET ASSETS. CONFIDENTIAL T-51597 DATE: 12/5/84 NET SALES OPERATING PROFITS NET SALES ai oo r-H o CM a a 1985 ANNUAL PROFIT PLANNING CONFERENCE ACTUAL 1983 PLAN F 'C S T 176.7 195.1 (9 .7 ) OPERATING PROFITS pH in 15.8 (.7 ) l 11 C LT\ -3" i i i (:onf1ID53E59N8UAL j! i! 1 1 CSj j UHi o< 3-il OOII tn|! Z D O ? s* aUJ: , O o* PREPARED BY RETURN ON NET ASSETS OPERATING PROFITS NET ASSETS EMPLOYED RETURN ON NET ASSETS LA t--H =T f--H IALA =X E5 a CO s? LIAA CO LA ILAA c3n r--1 o<-=Dor 2d 1985 ANNUAL PROFIT PLANNING CONFERENCE ACTUAL 1983 (-5 U. 15.8 15.1 CON[FIDENTIAL T-53600 || !! ii 5 tn CN Ui a< : r ; r?:.E uN,T reliance universal inc. IPREPAREO BV I/O s -3 CN =r 00 r-H a w 6 aa _> z jzji 55 eo oo 1985 ANNUAL PROFIT PLANNING CONFERENCE AC1UAL 12/83 VAR 00 3cn 1--1 ACCOUNTS RECEIVABLE (NET) 21.2 30.5 27.7 INVENTORIES 17.7 19.5 18.1 CN LA i-H -3" 3- CN 00 s 00 PROP., PLANT & EQUIP.(NET) 37.5 (3.7) ACCTS. PAY. & ACCR. LIAB. 21.3 (3.2) i 3- !1 i in ! i cIONF1DENIrTAT T-53601 !i i ____ ____ i CO !; CN : r:.?:.E A uN,T RELIANCE UNIVERSAL INC. PREPARED BY UKJ < a eC. N'T ai i o ro 0-1 a- 1984 PERFORMANCE REVIEW CAPITAL EXPENDITURES (NET) 1985 ANNUAL PROFIT PLANNING CONFERENCE =r 8R oB 5 LL. ACTUAL 1983 PLAN VAR -=r n't CAPITAL EXPENDITURES (TOTAL) 2.8 2.8 (1.5) 00 ar (1.7) (.8) N'T i-H fH CAPITAL EXPENDITURES (NET) (2.0) (2.3) _U- X a rv 1 5 VAR =r -0" 1 a | 1 1 LU l C/3 CO OJ ST r--1 CN i iii oo CNJ fH 1i111i CONFIDENTIAL T-53602 11i1i NORTH EAST MFG, FACILITY LOU. CT6S. P D -II EXPANSION CLINTON WAREHOUSE/MFG. HIGH PT. EMULSION EXPANSION ROANOKE TANK FARM BELGIUM PLANT RENOVATION LOU. CTGS. TANKERS GRAVURE PROGRAM CERRITOS ACQUISITION ALL OTHER ro eg eg uo in oo CT </) GO s a NET TOTAL (2.0) ;.:.?:.e a ,.ngun,t RELIANCE UNIVERSAL INC. 0>J UD i.. CNJ N'T 1 3.2 (1.6) (.9) (1.7) (.8 ) (2.3) 1 > OCD Ui X a<. Ui Xa. a- rn i 111iiiiii n't 1 11i 1i11 --H CO a1 iiI1 1i1i 4 1t> f-H D A T E 1< !1 11 5 i| ! | in I RELIANCE UNIVERSAL INC. 1985 ANNUAL PROFIT PLANNING CONFERENCE 1984 PERFORMANCE REVIEW POTENTIAL PROBLEM AREAS A. THE POTENTIAL PROBLEM AREAS FOR RELIANCE UNIVERSAL INC. IN 1984 WERE AS FOLLOWS: 1. RAW MATERIAL COSTS INCREASING AT A HIGHER RATE THAN CAN BE PASSED THROUGH. 2. CONTINUING FLIGHT OF FURNITURE INDUSTRY OVERSEAS. 3. COMMERCIALIZATION OF NEW PRODUCTS NOT PROCEEDING ON SCHEDULE. 4. INCREASED GOVERNMENTAL AND MEDIA EMPHASIS ON HAZARDOUS MATERIALS. B. NEW POTENTIAL PROBLEM AREAS SINCE LAST ANNUAL REVIEW: 1. WEAKENING MARKET CONDITIONS IN LATE 1984. 2. 1984 "LOSS" OPERATIONS. C. REVIEW - CURRENT STATUS OF POTENTIAL PROBLEM AREAS FOR 1984: 1. RAW COSTS HAVE DEFINITELY FIRMED UP, NEGATIVE PROFIT IMPACT. 2. CONTINUING AT A RAPID RATE. 3. SOME SIGNIFICANT GAINS OF NEW PRODUCT IN NEW MARKETS, OTHERS BELOW EXPECTATIONS. 4. GROWING RATE OF LEGISLATION AND REGULATIONS RELATED TO HAZARDOUS MATERIALS. 5. SOME WEAKENING OF MARKETS VS. LATE 1983, EARLY 1984. 6. TWO OPERATIONS HAD SIGNIFICANT NEGATIVE PROFIT IMPACT. confidential T-53603 DATE: 12/5/84 RELIANCE UNIVERSAL INC, 1985 ANNUAL PROFIT PLANNING CONFERENCE 1984 PERFORMANCE REVIEW MAJOR ANTICIPATED EVENTS A. THE MAJOR ANTICIPATED EVENTS FOR RELIANCE UNIVERSAL INC. IN 1984 WERE AS FOLLOWS: ' 1. HIGH LEVEL OF HOUSING STARTS/IMPROVED DEMAND FOR NON-HOUSING DURABLES. 2. SUCCESSFUL COMMERCIALIZATION OF NEW PRODUCTS, ON SCHEDULE. 3. ACHIEVE INCREASED MARKET PENETRATION IN MAJOR STRATEGIC MARKETS. 4. ASSIMILATION OF INMONT WOOD COATINGS BUSINESS. 5. EXPANSION OF CERRITOS (WEST COAST) OPERATION IN STRATEGIC MARKETS. 6. DEVELOP LOCATION TO SERVE NORTHEAST WOOD COATINGS MARKET. B. NEW MAJOR ANTICIPATED EVENTS SINCE LAST ANNUAL REVIEW: 1. LEEDER CHEMICAL DIVESTMENT. 2. ZEBRON PRODUCT LINE MARKETING SUCCESS. 3. UPGRADING "LOSS OPERATIONS" TO A PROFIT CONTRIBUTING STATUS. C. REVIEW - CURRENT STATUS OF MAJOR ANTICIPATED EVENTS FOR 1984: 1. IMPROVED OVER 1983 LEVEL, WEAKENED AS 1984 PROGRESSED. 2. SIGNIFICANT GAINS WITH NEW PRODUCTS IN NEW MARKETS. 3. SUCCESSFUL IN ACHIEVING INCREASED MARKET SHARE. 4. SUCCESSFULLY ACCOMPLISHED. 5. EXPANDING, BUT AT A SLOWER RATE THAN ANTICIPATED. 6. MARKET BEING SERVED SATISFACTORILY - PROJECT ON HOLD. 7. LEEDER CHEMICAL DIVESTMENT IS COMPLETED. 8. ZEBRON NOW ACQUIRED, BEING ASSIMILATED. 9. WORKING TO EXPAND MARKET BASE, PROGRESS BEING MADE. confidential T-53604 DATE: 12/5/84 RELIANCE UNIVERSAL INC. 1985 ANNUAL PROFIT PLANNING CONFERENCE 1984 PERFORMANCE REVIEW ACCOMPLISHMENTS IN 1984 RELIANCE UNIVERSAL HAD THE FOLLOWING ACCOMPLISHMENTS: i 1. COMPLETED DIVESTMENT OF ALL NON-COATIrfc ORIENTED OPERATIONS. IN SUPPORT OF STRATEGY OF COMMITTING ALL RESOURCES IN SUPPORT OF INDUSTRIAL COATINGS ACTIVITIES. 2. FULLY AND SUCCESSFULLY ASSIMILATED THE INMONT WOOD COATINGS ACQUISITION. LEADING TO $10 MILLION ADDITIONAL SALES. 3. ACQUIRED THE ZEBRON COATINGS PRODUCT LINE, AND NOW ASSIMILATING INTO THE ASSIGNED OPERATIONS. 4. MADE PROGRESS IN EXPANDING MARKET BASE, BEYOND WOOD COATINGS INTO OTHER SPECIALTY COATINGS MARKET SEGMENTS, PARTICULARLY RADITION CURE COATINGS - UP 300%. BUSINESS MACHINE COATINGS - UP 25%. 5. STRENGTHENED POSITION IN SUPPLYING COATINGS TO FOREIGN FURNITURE MANUFACTURERS, TO COUNTERACT FLIGHT OF THE U.S. FURNITURE INDUSTRY OVERSEAS - LEADING U.S. SUPPLIER IN EUROPE AND FAR EAST. confidential T-53605 6. GAINED CONSIDERABLE MARKET SHARE, FOR EIGHT MONTHS 1984, RELIANCE UNITS SOLD INCREASED 16.2% OVER 1983, INDUSTRY 12.9%. DATE: 12/5/84 RELIANCE UNIVERSAL INC. 1985 ANNUAL PROFIT PLANNING CONFERENCE 1984 PERFORMANCE REVIEW DISAPPOINTMENTS IN 1984, RELIANCE UNIVERSAL INC. MET WITH?ITHE FOLLOWING DISAPPOINTMENTS: 1. TWO OPERATIONS CONTINUED TO PERFORM BELOW BREAK-EVEN, LEADING TO A SIGNIFICANT PROFIT SHORTFALL. 2. MARKET CONDITIONS PRECLUDED THE PASS THROUGH OF RAW MATERIAL COSTS IN A TIMELY AND ADEQUATE MANNER, LEADING TO A PROFIT SLIPPAGE. 3. FELL SHORT OF PLANNED PENETRATION OF THE SPECIALTY COATINGS DIVISION INTO NEW MAJOR STRATEGIC MARKETS. CONFIDENTIAL T-53606 DATE: 12/5/84 ! LA cc o Cl! a- 1985 ANNUAL PROFIT PLANNING CONFERENCE 00 <T> U_ CAPITAL EXPENDITURES (NET) ACTUAL DEPRECIATION 1983 c-0--=n0ri 1985 -H r-H CAPITAL EXPENDITURES (NET)' (2.0) CNJ ZT o ss a- T--* -J i DEPRECIATION 3.9 * NET OF 4.8 MILLION (1983) AND 1.7 4) und{ 3H-- UoCucLJ CO V<o) QCO. a UCC<OOJ uo. LU ZD --1 r-4 sal i! !ii i 1 I 1 0a01'i;. ini! '?r.Er,AJ,'.NGUNT RELIANCE UNIVERSAL INC. PREPAREDBY | DATE 12 1985 ANNUAL PROFIT PLANNING CONFERENCE E <c cd LH 0cn0 cd CO BALANCE SHEET ITEMS 12/83 12/84 12/85 ACCOUNTS RECEIVABLE (NET) 21,2 27.7 32.0 INVENTORIES 17.7 18.1 20.3 00 s 0i--0( PROP., PLANT & EQUIP.(NET) 37.5 37.3 ACCTS. PAY. & ACCR. LIAB. 21.3 23.8 | i : I LH i CN j 1j 1 1 COK?1tdenT1AL r. i i i x GO zD .o? <8 cI uj : o CONFIDENTIAL T-53611 RELIANCE UNIVERSAL INC. 1985 ANNUAL PROFIT PLANNING CONFERENCE 1985 ANNUAL PROFIT PLAN POTENTIAL PROBLEM AREAS THE POTENTIAL PROBLEM AREAS FOR RELIANCE UNIVERSAL INC. IN 1985 ARE AS FOLLOWS: 1. AN ECONOMIC SCENARIO THAT WOULD FURTHER PINCH OFF HOUSING STARTS, COMMERCIAL BUILDING AND DURABLE GOODS PURCHASES. 2. A MARKET CONDITION THAT WOULD CURTAIL THE PASSING THROUGH OF COSTS, PARTICULARLY RAW MATERIAL COST INCREASES. 3. NOT ACHIEVING THE TURNAROUND OF THE TWO MAJOR LOSS OPERATIONS OF THE SPECIALTY COATINGS DIVISION. 4. NOT ACHIEVING THE PLANNED BROADENING OF RELIANCE'S MARKET BASE THROUGH COMMERCIALIZATION OF NEW PRODUCTS NOT PROCEEDING ON SCHEDULE. 5. INCREASED GOVERNMENTAL EMPHASIS ON HAZARDOUS MATERIAL LEGISLATION. DATE: 12/5/84 confidential T- 53612 RELIANCE UNIVERSAL INC. 1985 ANNUAL PROFIT PLANNING CONFERENCE 1985 ANNUAL PROFIT PLAN MAJOR ANTICIPATED EVENTS THE MAJOR ANTICIPATED EVENTS FOR RELIANCE UNIVERSAL INC. IN 1985 ARE AS FOLLOWS: 1. THE ECONOMY CONTINUING TO EXPAND IN 1985, PARTICULARLY THOSE SEGMENTS WHICH INFLUENCE OUR SPECIFIC MARKETS. 2. THE CONTINUING EXPANSION OF MARKET SHARE OF THE WOOD COATINGS DIVISION, IN THE MARKET SEGMENTS IT SERVES. 3. THE SUBSTANTIAL PLANNED PROFIT IMPROVEMENT OF THE SPECIALTY CHEMICALS DIVISION THROUGH THE PERFORMANCE IMPROVEMENT OF THE HOUSTON OPERATION, AND THROUGH THE SUCCESSFUL ASSIMILATION OF THE NEWLY ACQUIRED ZEBRON PRODUCT LINE. 4. THROUGH THE SPECIALTY COATINGS DIVISION, A SIGNIFICANT BROADENING OF RELIANCE'S MARKET BASE INTO NEW MAJOR STRATEGIC MARKETS BEYOND THE TRADITIONAL WOOD COATINGS ACTIVITIES, LEADING TO THE TURNAROUND OF TWO LOSS OPERATIONS AND SUBSTANTIALLY IMPROVED PROFITABILITY ACCORDING TO PLAN. 5. THE PASSING THROUGH OF COSTS, PARTICULARLY RAW MATERIAL COSTS, IN A TIMELY FASHION AT ADEQUATE LEVELS, AS A MINIMUM RETURNING TO 1983'S LEVEL OF RAW MATERIAL COSTS AS A PERCENT OF SALES. confident^ T-53613 DATE: 12/5/84 1985 ANNUAL PROFIT PLANNING CONFRERENCE 5<T> r-H . 1985 ANNUAL PROFIT PLANNING CONFERENCE G<s_OE> CAPITAL EXPENDITURES (NET) DEPRECIATION ACTUAL 1983 1985 1986 o if CAPITAL EXPENDITURES (NET)* (2.0) CN 3" DEPRECIATION 3.9 CNJ 3" -=r 8R hG--O G_> to a- o a- 3" *-- 3" 4.6 5.0 a- S5 a 2CO > a o i<-- if o LacUL; ! CO Q h-- L<Cf/UO^ uo. LU iT 8 f*s. i-H Q 3 00 3v*r OLi. LU Z * T-53615 1i; 1! 'i ! ; 3-i: 22jl ITi | CNJl ! 1? !o ?r.ErfcT'.NGUNIT RELIANCE UNIVERSAL INC. PREPARED BY | 1985 ANNUAL PROFIT PLANNING CONFERENCE S<T CO L=AT LA =r CM CO SR88 CT -=T CM H =r CM OO occr CD 8 ha & SR 3- CD CM L--Ai haa- haa- LP $CT LA hMa & S? ha ICD oc LA cr LA ha <C ha 9 Ca_>: LA a* he LhAa h--ai OO oo 3 <E o t3 Q<EC oo Sipo oo 1/01-- =C(^ oo t a-: oo la CM ai CONFIDENTIAL T-536M OzD Z. $; cr , &O 5^ r--H a r>. JT a fO 2 zd S cn LTV 8R oao: t_> <QEC SELECTED BALANCE SHEET ITEMS ACTUAL 1983 ACCTS. RECEIVABLE (NET) 21.2 INVENTORIES 17.7 PROP., PLANT & EQUIP.(NET) ACCTS. PAY. & ACCR. LIAB. 18,1 00 - oo s 27.7 37.5 21.3 1985 32.0 20.3 37.3 23.8 FORECAST 1986 38.7 21.0 22.5 37.0 36.6 25.5 28.2 to in 3- CM 00 CM s? 1 1989 23.8 31.3 35.8 33.9 t j ii !j sf LA 1 CM H<UJ- Q o 0* r a t in g u n it reliance UNIVERSAL INC. 1PREPARED BY RELIANCE UNIVERSAL INC, 1985 ANNUAL PROFIT PLANNING CONFERENCE LONG RANGE PLAN - 5 YEARS KEY INFLUENCING FACTORS: 1. THE BEHAVIOR OF THE ECONOMIC EXPANSION IN GENERAL, AND THE RELATED BEHAVIOR OF THOSE PARTICULAR SEGMENTS WHICH INFLUENCE OUR SPECIFIC MARKETS, I.E., INTEREST RATES, HOUSING STARTS, COMMERCIAL BUILDING, NON-HOUSING DURABLES, DISPOSABLE INCOME AND CONSUMER ATTITUDES. 2. THE DEGREE OF SUCCESS IN COPING WITH RAPIDLY ESCALATING ENVIRONMENTAL AND PRODUCT LIABILITY LEGISLATION, AND OUR FURTHER SUCCESS IN CONTROLLING COSTS RELATED THERETO. 3. THE DEGREE OF SUCCESS IN EXPANDING RELIANCE'S MARKET BASE WELL BEYOND THE TRADITIONAL WOOD COATINGS MARKETS INTO NEW SPECIALTY COATINGS MARKET SEGMENTS, INVOLVING NEW PRODUCTS AND NEW CUSTOMERS. 4. THE DEGREE OF SUCCESS IN PASSING THROUGH OF INCREASED COSTS, PARTICULARLY RAW MATERIAL COSTS, IN A TIMELY FASHION AND AT ADEQUATE LEVELS. DATE: 12/5/84 C0N^E*TUL T-5361S THURSTON AVIATIO N CONFIDENTIAL T-53619 THURSTON AVIATION, INC, 1985 ANNUAL PROFIT PLANNING CONFERENCE PRESENTATION CONFIDENTIAL T-53620 jl/OUL (JJdW JJJU J1UU Vo) S 3 o> <y> 5 z < oz 5 N 0= occ Q. Occ 1o 3< Z Z z> 2 <2 oicn>o oo CONFIDENTIAL T'53621 THURSTON AVIATION 1985 ANNUAL PROFIT PLANcc*)rUE*JC4^ COMPANY OBJECTIVES . 1. TO ATTAIN A RONA OF M. AND MAINTAIN AN ANNUAL GROWTH RATE OF NO LESS THAN IQ*. ' 2. TO MAINTAIN A REPUTATION OF QUALITY SERVICEj CAPABLE, HONEST MANAGEMENT AND FAIRNESS IN DEALINGS WITH OUR CUSTOMERS./ 3. TO CREATE A WORK ENVIRONMENT WHICH IS CONDUCIVE TO CREATIVE THINKING, SAFETY AND HIGH PRODUCTIVI TY ON BEHALF OF MANAGEMENT AND EMPLOYEES.^ CONFIDENTIAL T-53622 DATE DECEMBER 5. 1984 1985 ANNUAL PROFIT WING CONFERENCE \\ a CSl CSl r--| s# Q. U_ Q_ _<_s:I cH 5 --i 1<--/: 1_<u i_n Nw cr co -=r o i*-- LH CSI i--H a o & a Selected IBalance Sheet tems Accounts Receivable (Net) Actual 12/83 Inventories Prop, Plant & Equip, (Net) Accts. Pay. & Accr.L ia b . 5.9 2.8 \ LPl O' NS LT\ i--l \ -=r N (2.5) 3.0 CcOr j-n 9<C=N1I CONIIDEMIT1AL 1'*53621 ||| OPERATING UNIT: THURSTON AVIATION, INC. PREPARED BY: ) rH I UJ w1 ) UJ CM OO Q_ CO LTV csh CM g y CD & y Ca p i t a l Ex p e n d it u r e s (N e t ) Ac tu a l 1983 F 'Pl a n cast Va r . F 'P l a n castI Va r , 1 I 1 il 11 it 1l CO CSJ CO 1 CM co CO 1 1 1 o CM CM L is t S ig n if ic a n t Pr o je c t s : FBO S IT E OTHER TOTAL VI o per atin g u n it : T H U R S T O N A V 1 A T 1 01 CONTTDENUAL 1'53621 1 11 1 1 oc1 LT CN D-- m> O UJ (C <a UJ a: a. THURSTON AVIATION 1985 ANNUAL PROFIT PLAN/Z/V^ 1984 PERFORMANCE REVIEW ^ POTENTIAL PROBLEM AREAS / A. THE POTENTIAL PROBLEM AREAS FOR THURSTON AVIATION IN 1984 WERE AS FOLLOWS:' 1. SOFTNESS IN NEW AIRCRAFT SALES MARKET/ B. NEW POTENTIAL PROBLEM AREAS SINCE LAST ANNUAL REVIEW: / 1. POTENTIAL RADICAL MOVES ON BEHALF OF BUTLER AVIATION TO GAIN FUEL BUSINESS AT CHARLOTTE INTERNATIONAL AIRPORT. / C. . REVIEW / CURRENT STATUS OF POTENTIAL PROBLEM AREAS FOR 1984: / 1. SALES OF NEW AIRCRAFT STILL SOFT NATIONWIDE. 2. BUTLER REPORTEDLY GIVING FREE/PRICE REDUCED 4 HANGAR SPACE TO SEVERAL CORPORATE CUSTOMERS. CONFIDENTIAL T-S3628 DATE DECEMBER 5. 1984 CoCNDoI O=T IN crNr u-3o" no csi CNI i--i _i <cuo NO oo CD <O--I cr in -o=T no in N NO CNI CD oo o CNI LTi CD =r CD <-D LoUc QC <r Qs_: o<_> oi--o LU sr Q_ OO NOCNI in CO CO OO LO IN. CD oc OLU CQ NO CNI CO OO NO fN NO CD CL LU OOl OO OO NO CD CD <c 3: 2T QC 0 OO LU LU OO Q_ LU LU > 1 CQ LO Q_ THURSTON AVIATION / 1985 ANNUAL PROFIT PLAN 1984 PERFORMANCE REVIEW 7 MAJOR ANTICIPATED EVENTSx A. THE MAJOR ANTICIPATED EVENTS FOR THURSTON AVIATION IN 1984 WERE AS FOLLOWS: ^ 1. MOVE INTO AND SUCCESSFUL STARTUP OF NEW FBO AT CHARLOTTE AIRPORT. x 2. SALE OF "66" FACILITY TO CITY. 3. POSSIBLE PURCHASE OF ADDITIONAL FBO IN SOUTHEAST. / B. NEW MAJOR ANTICIPATED EVENTS SINCE LAST ANNUAL REVIEW: 1. PROPOSED REDUCTION TO CESSNA OF AIRCRAFT STOCKING REQUIREMENTS. ^ C. REVIEW / CURRENT STATUS OF MAJOR ANTICIPATED EVENTS FOR 1984: ^ ,1. MOVE AND STARTUP COMPLETE WITH MINIMUM INTERRUPTION OF BUSINESS. 2. OFFER OF $300,000 ACCEPTED FOR "66" FACILITY, x 3. FREDERICK, MD. A POSSIBILITY. 4. STOCKING REQUIREMENTS ARE REDUCED FOR 1985. x CONFIDENTIAL T-53630 DATE DECEMBER 5. 1984 THURSTON AVIATION 1985 ANNUAL PROFIT PLAN*///**' Inventory Requirements - Cessna Aircraft 1984 Prop-Jet 441 425 M/E Piston 4xx 3xx HPSE 2xx lxx LSE lxx Cost -- $3,,740,000 1985 (Proposed) Prop-Jet M/E Piston HPSE LSE 0 1 2 1 Cost -- $800,000 1985 Requirements Prop-Jet M/E Piston HPSE LSE 425 1 2 1 Cost -- $1,800,000 CONFIDENTIAL T-53631 DATE DECEMBER 5, 1984 THURSTON AVIATION 1985 ANNUAL PROFIT PLAN6- 1984 PERFORMANCE REVIEW^ DISAPPOINTMENTS / IN 1984, THURSTON AVIATION MET WITH THE FOLLOWING DISAPPOINTMENTS:^ 1. SLOW NEW AIRCRAFT INVENTORY TURNOVER CONTRIBUTING TO LOW ROA\Zl. 2. INABILITY TO PRODUCE PROFITS - IN CHARTER ACTIVITY DUE TO PRICING PRESSURES AND "NO GROWTH" MARKET. / CONFIDENTIAL DATE DECEMBER 5, 1984 THURSTON AVIATION 1985 ANNUAL PROFIT PLAN/V/MS" 1984 PERFORMANCE REVIEW - ACCOMPLISHMENTS IN 1984, THURSTON AVIATION HAD THE FOLLOWING ACCOMPLISHMENTS: ^ 1. VERY SMALL EROSION OF FUEL BUSINESS WHEN COMPETITION OPENED ON AIRPORT. ^ 2. ATTAINED SALES AND PROFIT PLAN FOR 1984. / 3. ACCOUNTING SEPARATION (PAYROLL, SAVINGS AND INVESTMENT AND ANNUAL PLANNING) FROM TML WITHOUT DISRUPTIONS. ^ ' CONFIDENTIAL T-53633 DATE DECEMBER 5, 1984 w?/^m a I Q_ s! LH y UJ ^2 z< c q: Q_ H LTl g? 1985 ANNUAL PROFIT PLAN Return on Net Assets Actual 1983 oo Operating Profits Net Assets Employed Return on Net Assets k. 7.2 i 6^ (A -1 ii----ii i--1 6*6 r-H <C- || if. LA H i--l CNJ cn 6^ 1985 cONFEdeniTAL T- 53636 THURSTON AVIATION, INC,PREPAREDBy: |T3>5/8^4 Selected Balance Sheet temsI Accounts Receivable (Net) a 12/85 3.0 lO aZ r--H NO -3- Q_ _<EI 5 lL 3 LPi t--H 3- NO Z5. us 3.0 cr 5.8 Actual 12/83 ^r =r i--i CNI ( ~Net--) ' CX. Plant & Equip. o_ 3* CLUO Lono CD 5o1z-- L>zU: Prop. -1- -- Accts.Pa y . & Accr.L ia b . LO occr <ac--si >0oUc<cl UQ.l (aL: z: > o oo ZD *-- COlMFTDIJNTMi. T-5J 37 Z OzD Ha<Uc*l aO. c5 CuoC_L Q_ LOCQTO. THURSTON AVIATION . 1985 ANNUAL PROFIT PLANfJlM 1985 ANNUAL PROFIT PLAN ^ POTENTIAL PROBLEM AREAS ^ THE POTENTIAL PROBLEM AREAS FOR THURSTON AVIATION IN 1985 ARE AS FOLLOWS: -- 1. SLOWER THAN PROJECTED RECOVERY IN NEW AIRCRAFT SA^ES. 2. FUEL AND/OR STORAGE PRICE CUTTING ON BEHALF OF BUTLER AVIATION. _ CJVPID: t-m DATE DECEMBER 5. im THURSTON AVIATION 1985 ANNUAL PROFIT PLAN rft 1985 ANNUAL PROFIT PLAN ^ MAJOR ANTICIPATED EVENTS / THE MAJOR ANTICIPATED EVENTS FOR THURSTON AVIATION IN 1985 ARE AS FOLLOWS: 1. INCREASED SALES AND BROKERAGES OF USED AIRCRAFT, BOTH TURBINE AND PISTON. 2. APPOINTMENT AS CITATION SERVICE STATION WITH ACCESS TO CITATION PARTS AND WARRANTY MAINTENANCE. ^ 3. FASTER TURN OF AIRCRAFT INVENTORY CREATING IMPROVED RONA AND CASH FLOW TO CORPORATE. / CONFIDENTIAL T-53640 DATE DECEMBER 5. 198A~ y s & L CL. 3 LPi a a S CDi & Q_ 1-H lo OO cm &-S r-^ r----HH k * OC OO OO OO --6*5 i .C-HD Return on Net Assets ' Actual 1983 Operating Profits Net Assets Employed Return on Net Assets . 1.3 9.9 1985 67 6m>S r-H 04 i--f L>--T\1 =T OO hO *--1 N Forecast 1986 1987 .r--^H. OO LTN r--| 1988 8.8 6oCN-eJ com? T Srn*z. 11i operating unit THURSTON AVIATION. INC. ^ ^p reobv oCTa1;! 'S LP h<CP*\ O'-' Scr--n OO r--1 <--1 OO 1'-- -=T cn Nn cr hO rv. T--1 cr i--H LD O cr i--H k-\ -=r .=r O 1985 ANNUAL PROFIT ANNING CONFERENCE FIVE YEAR FORECAST Selected IBalance Sheet tems Accounts Receivable (Net) r-H Actual 1983 1985 Forecasi 1986 1987 1 .7 LH =r --1 Inventories r 5.8 3.7 3 .6 3.7 Prop. Plant & Equip. (Net) 3 .0 i 3 .2 Csl r--) cr cr 0" Accts.Pay. & Accr. Lia b , CON] 7DEN TlAL '536ti cr OO \ LT\ & > CD O UO<CJ a. U&crJ H35 O2 H<<r UJ Oa. <_j z o 1-- <c > <c z o OcnO THURSTON AVIATION 1985 ANNUAL PROFIT PLAW/a/^ LONG-RANGE PLAN - 5 YEARS KEY INFLUENCING FACTORS / 1. AIRCRAFT SALES MARKET. ' 2. AMPLE SUPPLIES OF AVIATION FUEL WITH STABILITY IN PRICES. ^ 3. POSSIBLE FEDERAL REGULATIONS WHICH COULD RESTRICT USE OF, OR TAX BENEFITS IN PURCHASE OF, GENERAL AVIATION AIRCRAFT./ C^%AL T-m$ Dtiny LD & V1 \ * CL. ^ \ *> LA "N \ s. _^ ^lo y* & o o2 y * N \ D ) VCa p it a l ie n d it u r e s (Ne t Ac t u a l De p r e c ia t io n ^ j 1983' /Ca p it a l Expenditures (Ne t ) j r- H C*> S\ Pla n r--j F 'cast oo \ UD \ I. \De p r e c ia t io n ^ X . r--) \ r--H CO?JFIDENTLAL T-53d47 THURSTON AVIATION. INC/ I I 1 7 /5 /8*4 | | -- /1989 PERFORMANCE REVIEW Se l e c t e d IBalance Sheet tems / /Accounts Re c e iv a b le (Ne t ) K------ 1985 ANNUAL PROFLl . JOINING CONFERENCE Ac t u a l 12/83, LL- 1 \LT M CO <o --^ N CNI a<: > / (NT 1\ \ -- ' i 1^ ; lh I nventories / \ oo \ i_n X" 5,CNI o\ NN OO * >0 F% Cxi k CT F $V. CNI V* Vk. c 3 CO V <s v) Pr o p . Plant & Eq u ip . (Ne t ) ^Accounts Payable /N 4 V. V > CON; 'IDfiji itial 'Sto W F57ZT1 ....... .. \ Jn I n u I iu ia v N u ib d ilh i' 1985 ANNUAL PROFIT BANNING CONFERENCE 1 Va r , \ \' h" \ p-H C<O o\ i CECD Uh-- \i Pl a n cast Va r . \ V 5 oC 2- \ \ Plan F ' t_q \ ---- - \ 3 a o & a Ac t u a l /1983 N i' = LU CO UJ cr Z) h- Q Z LU C_ <_J J-- r" ko i L is t S ig n if ic a n t Pr o je c ts : FBO S it e CO <CN. i 1 t \ i si OD 3S> LD * > \r^ O Csl \ 4 h> Si ('jy^ X c <r > <=x w cn \ a <_> S' Q_ lr\ \ UJ & LPi r--( 1985 ANNUAL 1PROP 1 PLANNING COilFERENCE \ \\ \ 1985 ANNUAL PROFIT P' "TNING CONFERENCE CONFIDENTIAL T-53660 TYLER PIPE INDUSTRIES, INC. 1985 ANNUAL PROFIT PLANNING CONFERENCE PRESENTATION CONFIDENTIAL T-5366J TYLER PIPE INDUSTRIES, INC. \ 1985 ANNUAL PROFIT PLANNING CONFERENCE \COMPANY OBJECTIVES ' 1. TO MAINTAIN QUALITY AND SERVICE SO THAT OUR PRODUCTS WILL BE PREFERRED AND SPECIFIED. ^ 2. TO IMPROVE PRESENT, AND DEVELOP NEW, PROCESSES AND TECHNIQUES.^ 3. TO DEFINE FIELDS OF INTEREST AND PROPOSE THE MEANS FOR ACHIEVING ADDITIONAL GROWTH IN THESE FIELDS BY CONSTANTLY RE-EXAMINING PRODUCT AND MARKET OPPORTUNITIES./ 4. TO MAINTAIN A MINIMUM OPERATING PROFIT OF 12%./ 5. TO MAINTAIN A MINIMUM OPERATING PROFIT RETURN ON NET ASSETS OF 30%. DATE CONFIDENTIAL T-53663 \ /1984 PERI .1ANCE REVIEW/ NET SALES ' _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1985 ANNUAL PROFIT PLANNING CONFERENCE/ .ACTUAL- . / ...^ PLAN F CST _ 1984 PEk ,<MANCE REVIEW 1985 ANNUAL PROFIT PLANNING CONFERENCE /1984 PERI v...1ANCE REVIEW _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1985 ANNUAL PROFIT PLANNING CONFERENCE/ OPERATING _UNIT: _ _ _ _ TYLER PIPE INDUSTRIES, INC,/PREPARED BY:DATE: 12/fc/84 | pAGE n q TYLER PIPE INDUSTRIES, INC. 1985 ANNUAL PROFIT PLANNING CONFERENCE^ 1984 PERFORMANCE REVIEW / POTENTIAL PROBLEM AREAS ^ A. The Potential Problem Areas for Tyler Pipe/ Industries, Inc. in 1984 were as follows: 1. Level and mix of construction spendingJ 2. Price of scrap t 3. Government regulations ; 4. Industry over-capacity/ 5. Import competition/ 6. Energy Costs/ 7. Price of PVC Resin / 8. Possible labor problems' 9. Customer bankruptcies / B. New Potential Problem Areas sincf Last Annual Review NONE / C. REVIEW / CONFIDENTIAL T-53669 Date Decemberb, 1984 7 TYLER PIPE INDUSTRIES, INC. 1985 ANNUAL PROFIT PLANNING CONFERENCE 1984 PERFORMANCE REVIEW Major Anticipated Events ^ A. The Major Anticipated Events for Tyler Pipe^ Industries, Inc. in 1984 were as follows: 1. Start Impact Molding Project/ 2. Continuation of Ductile Iron Program/ B. New Major Anticipated Events since Last Annual Review 1. Purchase of Gustin-Baccn/ 2. IBM 4381 Computer^ C. REVIEW / CONFIDENTIAL T-53670 Date December 1984 TYLER PIPE INDUSTRIESi INC. / 1985 ANNUAL PROFIT PLANNING CONFERENCE / 1984 PERFORMANCE REVIEW / DISAPPOINTMENTS y I 1984n Tyler Pipe Industries, Inc. met with the following DISAPPOINTMENTS: / 1. Profitability of Plastics Division 2. Export Business CONFIDENTIAL T-53671 DATE a DECFMBFR 1984 TYLER PIPE INDUSTRIES, INC. 7 2985 ANNUAL PROFIT PLANNING CONFERENCE / 1984 PERFORMANCE REVIEW ACCOMPLISHMENTS , 1984In Tyler Pipe Industries, Inc. had the following ACCOMPLISHMENTS: 1. Exceeded profit and cash plan i 2. Improved Cast Iron DWV profit margins 3. Conversion of Medical Benefit Plan) CONFIDENTIAL T-53672 DATE December 0, 1984 \ $ 1985 ANNIjml PROFIT PLAN /MET SALES /OPERATING PROFITS / ACTUAL 1983J So o3" NET SALES 7 CAST IRON DWV 7 SPECIFICATION PRODUCTS, UTILITIES PLASTICS / / 17.7 21.1 CN cn <cur si 192.0 X \' gcoo C-c3On" U_ _ _ _ _ _ _ _ _ 1985 ANNUAL PROFIT PLANNING CONFERENCE af &cn r--I m .7 20.8 59.1 17.5 212.1 La_ _ \ \ ___ i \ CD cLAn CM CD r--1 7 213.1 CN LTi ', __A. s. _ >i_ \ CO r^v OPERATING PROFITS ' CAST IRON DWV > j 'SPECIFICATION PRODUCTS 13.9 gLUo" **** __1 5 V PLASTICS 1 \CONSOLIDATED o 7*3 g jg ^3 \ \\ N O r--t o6 19.6 11.3 32.8 . ro\ LCHN * IAL OPERATING UNIT: TYLER PIPE INDUSTRIES# INC. \ PREPARED BY A CM IDV __ I 1 r--^ __v CM CD iJ---i DATE 12/078^ PAGE N< \ < 1a_ \ 1985 ANNUAL PROFIT PLAN X CAPITAL EXPENDITURES (NET) ACTUAL DEPRECIATION 1983! HoCO- 5C71 Li_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1985 ANNUAL PROFIT PLANNING CONFERENCE: 1 ___ !ii_ ^_ i s 2 CAPITAL EXPENDITURES (NET), 9,W t /DEPRECIATION 7.3 *N \ \ tVAi- co^?ssk I cz OUJ < d. Cnj UJ i-- o< (y-> LU Fc"c: CO o:z> a. cc LlJ z3 ? p 5 s > 03 O UcrJ < CL UccJ CL 1985 AMTiurtL PROFIT PLAN / 1985 ANNUAL PROFIT PLANNING CONFERENCE \ 71985 ANNIjml PROFIT PLAN _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 1985 ANNUAL PROFIT PLANNING CONFERENCE,/ '1985 ANNi>L PROFIT PLAN 1985 ANNUAL PROFIT PLANnUG CONFERENCE TYLER PIPE INDUSTRIES, INC. 1985 ANNUAL PROFIT PLANNING CONFERENCE 1985 ANNUAL PROFIT PLAN . POTENTIAL PROBLEM AREAS / The Potential Problem Areas for Tyler Pipe Industries, Inc. in 1985 are as follows: 1. Level and mix of construction spending 2. Price of scrap 3. Government regulations A. Industry over-capacity/ 5. Import competition' 6. Energy costs . 7. Price of PVC resin' 8. Possible labor problems 9. Customer bankruptcies ' CONFIDENTIAL T-S67S DATE December I, 198A TYLER PIPE INDUSTRIES, INC. 1985 ANNUAL PROFIT PLANNING CONFERENCE . 1985 ANNUAL PROFIT PLAN MAJOR ANTICIPATED EVENTS - The Major Anticipated Events for Tyler Pipe Industries, Inc. IN 1985 ARE AS FOLLOWS: 1. Start up of Impact Molding Unit x 2. Re-locaticn of Gustin-Bacon to Tyler ^ 3. Conversion to MVS Computer System: ^ 4. Additions to Ductile Iron Fittings Line ' /FIVE YEAR FORECAST 1985 ANNUAL PROFIT PLANNING CONFERENCE FIVE YEAl, . ORECAST ' 1985 ANNUAL PROFIT PLANNING CONFERENCE FIVE YEAK . ORECAST / J985 ANNUAL PROFIT PLANNING CONFERENCE & l; v |CNi F I \ oo V CN> \ oaJ- ^FIVE YEAu . ORECAST SELECTED BALANCE SHEET ITEMS /ACCOUNTS RECEIVABLE (NET) ACTUAL 12/83 \ CUOJ cc 20.7 PROP., PLANT & EQUIP. (NET)^ 33.3 | ACCTS. PAYABLE & ACCR.LIAB. 1 13.4 cc CO r_l '1 ___________ ____________, | i 1 ___ i_ _ _ \ i, CO CJ pH \ 37.5 i o oc1 1 1 \ 1GO i ! 12/85 1985 ANNUAL PROFIT PLANNING CONFERENCE ^FORECAST /12/86 r 20.6 12/87 r 22.4 12/88 \ \ L ] CNJ V cn ' iH 21.3 22.7 \ \ o) CSMT cT \ hSOT 42.7 1_3_.9 13.0 L . 0 . 5 SCMT i j CM -- \ I, o CONfTDENnAL 1[-53683 operating unit: /TYLER PIPE INDUSTRIES, INC. prepared by d a te 12/)vR4 PAGE N< TYLER PI PE INDUSTRIES, INC. 1985 ANNUAL PROFIT PLANNING CONFERENCE / 1GE PLAN - 5 YEARS x Influencing Factors x 1. Governmental - , a. Housing Programs b. Sewer and Water Programs " c. Health and Safety Act / D. Environmental and Ecological Standards ^ Growth in construction spending in real terms Percent of DW-market in cast iron, plastic and other MATERIALS / OTHEF PRODUCTS SOLD BY TYLEP USING PRESENT DISTRIBUTION CHANNELS THAT OFFER ATTRACTIVE RETURN ON INVESTMENT OPPORTUNITIES ^ Competitor production decisions ^ Import competition/^ U. S. and worldwide SUPPLY OF ENERGY / \j4 ro xr v.n CONFIDENTIAL T-53685