<PAGE> 1
Exhibit (c)(2)
COMPANY BACKGROUND
<PAGE> 2
COMPANY BACKGROUNDS
- Flathead, organized in 1983, owns, operates and franchises buffet style
restaurants and steakhouse restaurants. The Company's core buffet
restaurants offer a wide variety of freshly prepared menu items,
including soups, salads, entrees, vegetables, non-alcoholic beverages and
deserts, presented in a self-service buffet format in which consumers
select the items and portions of their choice. Average ticket size is
$6.99 to $9.19 for dinner and $5.89 to $6.59 for lunch. The Company's
buffet restaurants utilize uniform menus, recipes and ingredient
specifications.
Recently, the Company successfully developed and expanded newer
complementary concepts in the steakhouse grill and soup and salad
segment. As of January 31, 2000, the Company owned and operated 404
units, including 386 core buffet restaurants and 18 complementary concept
restaurants. The Company also franchises 24 buffet units.
- Caxton-Iseman Capital is New York based private equity firm with more
than $700 million of equity under management. Since 1993, the company has
made investments in the following industries: foodservice, hotel
management, defense, IT services, heavy and light manufacturing,
print/database publishing, medical devices, business services,
agribusiness and hotel management.
Project Flathead 2 U.S. Bancorp Piper Jaffray
<PAGE> 3
SUMMARY PROCESS OVERVIEW
<TABLE>
<S> <C>
August 1999 Board meeting - discussed strategic alternatives
December 1999 Engaged U.S. Bancorp Piper Jaffray to approach potential
partners
January -April 2000 Strategic and financial buyers contacted
- Potential partners contacted: 88
- Executed Confidentiality Agreements and received
Confidential Memorandum: 37
- First Round Bids received: 8
- Second Round Bids received: 4
May 2000 30 day exclusivity granted to Caxton-Iseman
</TABLE>
Project Flathead 3 U.S. Bancorp Piper Jaffray
<PAGE> 4
TRANSACTION SUMMARY
<PAGE> 5
TRANSACTION SUMMARY
<TABLE>
<S> <C>
Structure: 100% cash
Per Share Price: $13.85 per common share
Break-Up Break-up fee of $19.3 million, or 3% of the transaction
Fee/Expenses: value plus reimbursement of expenses up to $6.4 million,
or 1% of the transaction value, paid to Caxton-Iseman
Capital if a transaction is executed with another party.
Deal Value: $643 million equity value
- 46.4 million fully-diluted shares
- 41.6 million basic shares
- 3.6 million shares from conversion of
subordinated note
- 1.3 million common share equivalents (based
on treasury stock method)
- $13.85 per share of Flathead
$550 million Company value as of 4/19/00
- $643 million equity value
- $93 million of cash as of 4/19/00
- $0 million of debt as of 4/19/00 (assumes
conversion of convertible notes)
</TABLE>
Project Flathead 5 U.S. Bancorp Piper Jaffray
<PAGE> 6
TRANSACTION SUMMARY
<TABLE>
<S> <C>
Sources of Funds: $110 million Cash on Balance Sheet projected at 9/30/00
$310 million Senior Term Debt
$95 million Mezzanine Financing
$20 million Sale/Leaseback Net Proceeds
$130 million Total Equity (includes approximately $9
million equity rolled by management)
$665 million
Closing Considerations: Requires approval by Flathead shareholders
</TABLE>
Project Flathead 6 U.S. Bancorp Piper Jaffray
<PAGE> 7
PROPOSED DEAL MULTIPLES
<TABLE>
<CAPTION>
Implied
Flathead Multiples(1)
---------------------
<S> <C>
Company Value/LTM Revenues 0.6x
Company Value/LTM EBITDA 4.7x
Company Value/LTM Operating Income 7.6x
Equity Value/LTM Net Income 13.1x
LTM P/E(2) 12.8x
2000E P/E(2) 12.2x
Premium Paid(3)
1 Day Prior 14.2%
1 Week Prior 27.4%
1 Month Prior 41.1%
</TABLE>
(1) LTM data is as of 4/19/00. Company value calculated using fully diluted
shares outstanding.
(2) Earnings based upon management's estimates as adjusted to account for
increase in fully-diluted shares outstanding due to assumed $13.85 purchase
price.
(3) Based on share prices as of 6/02/00, 5/26/00 and 4/28/00 of $12.13, $10.88
and $9.81.
Project Flathead 7 U.S. Bancorp Piper Jaffray
<PAGE> 8
CURRENT MARKET VIEW AND
FINANCIAL DATA FOR FLATHEAD
<PAGE> 9
FLATHEAD MARKET OVERVIEW
In Thousands Except Per Share Data
<TABLE>
<CAPTION>
SUMMARY CAPITALIZATION (AS OF 6/02/00) :
<S> <C>
Stock price $ 12.13
Shares outstanding(1) 41,576
Market capitalization $504,111
Less cash and equivalents(1) $ 92,604
Plus debt(1) $ 41,465
-- --------
Company Value $452,972
</TABLE>
ANALYSTS FOLLOWING FLATHEAD :
<TABLE>
<CAPTION>
EPS
----------------- Last
2000 2001 Comment Revised
----------------- ---------- -------
<S> <C> <C> <C> <C> <C>
1)U.S. BANCORP PIPER JAFFRAY $1.16 $1.35 STRONG BUY 5/5/00
2)Dain Rauscher Wessels $1.12 NA Buy 2/17/00
3)Ragen Mackenzie $1.15 NA NA 5/12/00
4)SunTrust Equitable Securities $1.16 $1.30 Buy 5/16/00
-----------------
Mean: $1.15 $1.33
P/E: 10.6x 9.2x
</TABLE>
(1) As of 4/19/00.
Project Flathead 9 U.S. Bancorp Piper Jaffray
<PAGE> 10
FLATHEAD MARKET OVERVIEW
<TABLE>
<CAPTION>
Stock Market NASDAQ
<S> <C>
Stock Price (as of 6/02/00) $12.13
-- 30 Day Average $11.25
-- 60 Day Average $10.29
-- 90 Day Average $ 9.71
-- 180 Day Average $ 9.67
In the 12 month period ending 6/02/00 the stock has traded at:
-- A Low of $ 7.91
-- A High of $12.50
-- An Average Daily Volume (000's) of 212.1
In the 3 month period ending 6/02/00 the stock has traded at:
-- A Low of $ 7.91
-- A High of $12.50
-- An Average Daily Volume (000's) of 224.9
</TABLE>
Project Flathead 10 U.S. Bancorp Piper Jaffray
<PAGE> 11
FLATHEAD - PRICE/VOLUME GRAPH (1 YEAR)
<TABLE>
<CAPTION>
---------------------------------------------------------------
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------
<S> <C> <C> <C> <C>
6/02/99 566.0 10.88 10.19 10.50
6/03/99 1,303.5 10.50 9.94 10.19
6/04/99 779.0 11.06 10.13 10.75
6/07/99 172.9 11.00 10.50 10.94
6/08/99 282.3 10.81 10.50 10.63
6/09/99 99.5 10.94 10.50 10.94
6/10/99 117.4 11.00 10.75 10.88
6/11/99 134.9 10.97 10.75 10.88
6/14/99 164.1 11.00 10.63 10.75
6/15/99 255.7 11.06 10.69 10.81
6/16/99 99.4 10.81 10.69 10.69
6/17/99 156.0 10.94 10.63 10.94
6/18/99 425.0 11.25 10.94 11.06
6/21/99 527.0 11.13 11.00 11.00
6/22/99 552.7 11.13 10.88 11.00
6/23/99 102.9 11.13 10.88 11.13
6/24/99 891.7 11.13 11.00 11.00
6/25/99 70.1 11.19 11.00 11.13
6/28/99 103.2 11.19 11.00 11.13
6/29/99 161.4 11.50 11.13 11.44
6/30/99 167.3 11.50 11.38 11.50
7/01/99 180.4 11.56 11.31 11.31
7/02/99 82.9 11.50 11.25 11.31
7/06/99 113.1 11.56 11.25 11.38
7/07/99 184.5 11.56 11.31 11.38
7/08/99 111.7 11.50 11.25 11.31
7/09/99 420.2 11.50 11.25 11.38
7/12/99 64.4 11.50 11.31 11.44
7/13/99 205.1 11.50 11.31 11.38
7/14/99 370.2 11.50 11.25 11.50
7/15/99 60.3 11.50 11.31 11.38
7/16/99 45.8 11.50 11.31 11.41
7/19/99 220.9 11.50 11.31 11.50
7/20/99 110.0 11.50 11.25 11.31
7/21/99 194.7 11.50 11.25 11.25
7/22/99 243.5 11.56 11.25 11.44
7/23/99 68.9 11.44 11.31 11.38
7/26/99 490.8 11.50 11.31 11.50
7/27/99 762.0 12.00 11.38 11.88
7/28/99 1,128.9 12.00 11.63 11.81
7/29/99 143.4 11.88 11.50 11.50
7/30/99 126.4 11.81 11.44 11.75
8/02/99 129.1 12.00 11.50 11.50
8/03/99 109.2 11.75 11.31 11.56
8/04/99 262.8 11.88 11.50 11.63
8/05/99 51.1 11.61 11.38 11.50
8/06/99 165.4 11.50 10.94 11.13
8/09/99 141.5 11.63 11.19 11.56
8/10/99 218.0 11.56 11.25 11.38
8/11/99 257.1 11.75 11.38 11.75
8/12/99 112.0 11.75 11.50 11.75
8/13/99 115.9 11.88 11.50 11.50
8/16/99 144.8 11.75 11.50 11.63
8/17/99 81.6 11.75 11.50 11.69
8/18/99 81.8 11.81 11.58 11.63
8/19/99 103.2 11.78 11.56 11.63
8/20/99 208.2 11.63 11.50 11.56
8/23/99 198.6 11.69 11.50 11.69
8/24/99 431.9 11.75 11.56 11.69
8/25/99 64.1 11.75 11.50 11.63
8/26/99 60.5 11.75 11.56 11.56
8/27/99 100.2 11.56 11.38 11.38
8/30/99 133.5 11.50 11.25 11.44
8/31/99 248.6 11.38 11.19 11.19
9/01/99 209.1 11.31 11.13 11.31
9/02/99 290.6 11.44 11.13 11.44
9/03/99 20.9 11.56 11.31 11.56
9/07/99 103.9 11.44 10.75 10.94
9/08/99 58.3 10.94 10.69 10.81
9/09/99 67.5 10.69 10.38 10.69
9/10/99 63.3 10.94 10.50 10.75
9/13/99 226.7 10.75 10.31 10.56
9/14/99 68.2 10.69 10.38 10.38
9/15/99 121.2 10.63 10.38 10.44
9/16/99 182.6 11.00 10.50 10.50
9/17/99 134.0 11.00 10.38 10.94
9/20/99 35.6 11.00 10.75 10.94
9/21/99 34.9 10.94 10.63 10.63
9/22/99 174.1 10.81 10.50 10.63
9/23/99 35.5 10.88 10.44 10.44
9/24/99 86.8 10.63 10.44 10.44
9/27/99 96.4 10.94 10.50 10.75
9/28/99 264.6 10.94 10.50 10.75
9/29/99 175.6 10.69 10.44 10.44
9/30/99 253.1 11.69 10.44 11.63
10/01/99 145.9 11.56 11.00 11.13
10/04/99 135.2 11.19 10.81 11.06
10/05/99 56.5 11.13 10.81 10.94
10/06/99 185.7 10.81 10.38 10.44
10/07/99 184.8 10.63 10.25 10.53
10/08/99 118.1 10.75 10.38 10.38
10/11/99 195.5 10.50 10.13 10.31
10/12/99 193.8 10.44 10.13 10.25
10/13/99 34.2 10.31 10.13 10.31
10/14/99 186.2 10.19 9.69 9.88
10/15/99 76.7 9.88 9.44 9.47
10/18/99 198.2 9.81 9.50 9.78
10/19/99 265.3 10.00 9.44 9.56
10/20/99 333.4 9.81 9.38 9.50
10/21/99 31.5 9.56 9.25 9.44
10/22/99 25.5 9.44 9.25 9.44
10/25/99 295.9 9.44 9.25 9.28
10/26/99 414.4 9.34 8.91 9.13
10/27/99 557.4 9.72 9.34 9.41
10/28/99 343.2 9.56 9.13 9.31
10/29/99 207.4 9.56 9.19 9.31
11/01/99 202.8 9.56 9.28 9.56
11/02/99 105.3 9.69 9.50 9.50
11/03/99 275.0 9.63 9.50 9.56
11/04/99 139.3 10.13 9.50 10.13
11/05/99 225.2 10.59 9.94 10.56
11/08/99 106.6 10.75 10.38 10.75
11/09/99 147.8 10.72 9.94 10.06
11/10/99 1,819.6 10.13 9.63 9.88
11/11/99 92.6 10.19 9.75 9.88
11/12/99 80.9 10.25 9.63 9.88
11/15/99 236.0 10.00 9.50 10.00
11/16/99 165.5 10.13 9.88 9.97
11/17/99 128.8 10.19 9.88 10.16
11/18/99 68.2 10.19 9.88 10.06
11/19/99 319.3 10.50 10.00 10.50
11/22/99 66.0 10.44 10.00 10.19
11/23/99 203.4 10.88 10.19 10.75
11/24/99 278.6 11.06 10.81 10.94
11/26/99 262.9 11.88 10.63 11.63
11/29/99 586.0 11.88 10.50 10.50
11/30/99 169.3 11.00 9.94 10.75
12/01/99 40.6 11.00 10.44 10.63
12/02/99 86.6 10.38 10.06 10.19
12/03/99 508.1 10.63 10.00 10.56
12/06/99 40.7 10.75 10.53 10.63
12/07/99 77.2 10.88 10.50 10.50
12/08/99 127.2 10.63 9.75 9.75
12/09/99 121.1 10.25 10.00 10.03
12/10/99 117.9 10.06 10.00 10.06
12/13/99 86.6 10.13 10.00 10.06
12/14/99 62.0 10.13 9.63 9.69
12/15/99 94.4 10.06 9.38 10.00
12/16/99 39.1 10.00 9.72 9.94
12/17/99 176.1 10.00 9.31 9.98
12/20/99 167.4 10.00 9.44 9.75
12/21/99 82.3 10.06 9.50 10.06
12/22/99 144.9 10.25 9.50 10.00
12/23/99 77.4 10.13 9.75 10.00
12/27/99 153.9 10.25 9.75 10.13
12/28/99 73.3 10.00 9.50 9.50
12/29/99 45.0 10.00 9.50 9.94
12/30/99 74.0 10.13 9.94 10.06
12/31/99 84.3 10.13 9.75 10.00
1/03/00 45.6 10.03 9.75 9.88
1/04/00 36.0 9.84 9.63 9.69
1/05/00 158.4 9.72 9.25 9.38
1/06/00 126.2 9.69 9.28 9.59
1/07/00 122.4 10.13 9.66 10.00
1/10/00 459.0 10.13 9.77 9.98
1/11/00 105.4 10.00 9.75 9.81
1/12/00 43.1 9.88 9.50 9.66
1/13/00 161.2 10.00 9.50 9.94
1/14/00 183.2 10.00 9.75 9.75
1/18/00 44.1 10.00 9.69 9.69
1/19/00 233.1 10.31 9.69 10.31
1/20/00 119.7 10.38 9.70 10.06
1/21/00 176.0 10.22 9.25 9.63
1/24/00 167.7 9.75 9.19 9.31
1/25/00 170.9 9.63 9.19 9.38
1/26/00 89.9 9.50 9.25 9.44
1/27/00 72.7 9.63 9.31 9.44
1/28/00 59.4 9.63 9.38 9.61
1/31/00 142.5 9.69 9.13 9.31
2/01/00 67.3 9.38 9.06 9.06
2/02/00 152.7 9.31 9.00 9.13
2/03/00 121.5 9.63 9.13 9.50
2/04/00 61.3 9.56 9.39 9.50
2/07/00 154.9 9.94 9.13 9.75
2/08/00 251.2 9.94 9.63 9.84
2/09/00 111.4 10.19 9.75 10.09
2/10/00 324.1 10.50 9.81 9.98
2/11/00 280.6 10.19 9.50 9.50
2/14/00 120.0 9.91 9.44 9.50
2/15/00 291.5 9.75 9.38 9.75
2/16/00 286.7 9.88 9.38 9.56
2/17/00 1,031.2 9.56 8.88 9.00
2/18/00 305.8 9.06 8.25 8.38
2/22/00 463.9 8.75 8.38 8.75
2/23/00 327.8 8.81 8.31 8.41
2/24/00 349.3 8.75 8.50 8.69
2/25/00 254.9 8.88 8.50 8.69
2/28/00 282.7 8.88 8.38 8.56
2/29/00 423.3 8.75 8.50 8.69
3/01/00 171.0 8.91 8.50 8.75
3/02/00 29.2 8.88 8.75 8.75
3/03/00 634.6 8.81 8.50 8.69
3/06/00 93.6 9.06 8.50 9.06
3/07/00 117.5 9.13 8.56 8.63
3/08/00 186.6 8.88 8.22 8.22
3/09/00 149.7 8.75 8.22 8.75
3/10/00 92.8 8.88 8.50 8.88
3/13/00 46.4 9.00 8.63 8.94
3/14/00 275.4 9.00 8.44 8.50
3/15/00 574.1 8.88 8.13 8.16
3/16/00 410.8 8.50 7.91 8.06
3/17/00 464.8 8.63 7.98 8.13
3/20/00 211.0 8.50 8.28 8.44
3/21/00 254.1 9.00 8.38 8.38
3/22/00 194.3 8.81 8.25 8.31
3/23/00 401.6 8.75 8.28 8.69
3/24/00 292.2 9.00 8.25 8.38
3/27/00 61.0 9.00 8.63 8.94
3/28/00 110.9 8.94 8.50 8.50
3/29/00 603.1 8.88 8.38 8.50
3/30/00 84.6 9.00 8.50 8.75
3/31/00 509.2 9.06 8.31 9.03
4/03/00 50.0 9.00 8.69 8.72
4/04/00 92.3 9.00 8.38 8.59
4/05/00 69.8 8.81 8.25 8.25
4/06/00 123.0 8.81 8.38 8.69
4/07/00 71.1 9.00 8.56 9.00
4/10/00 63.0 9.00 8.53 8.53
4/11/00 355.8 9.06 8.53 8.88
4/12/00 191.4 9.00 8.88 8.94
4/13/00 128.9 9.00 8.88 9.00
4/14/00 84.0 9.06 8.63 8.75
4/17/00 158.8 9.03 8.56 8.88
4/18/00 232.9 9.13 8.84 9.09
4/19/00 71.5 9.50 8.94 9.13
4/20/00 279.7 9.50 9.13 9.44
4/24/00 142.3 9.75 9.25 9.72
4/25/00 267.4 10.50 9.69 10.50
4/26/00 89.0 10.63 10.00 10.25
4/27/00 165.0 10.06 9.50 9.53
4/28/00 241.5 9.88 9.50 9.81
5/01/00 287.6 10.38 9.75 10.00
5/02/00 94.8 10.25 9.88 10.25
5/03/00 138.2 10.16 10.00 10.06
5/04/00 248.1 11.56 10.44 10.56
5/05/00 198.5 10.88 10.50 10.88
5/08/00 268.6 11.25 11.00 11.25
5/09/00 801.2 11.44 11.00 11.44
5/10/00 763.5 11.44 11.08 11.38
5/11/00 978.1 11.75 11.38 11.75
5/12/00 293.6 12.00 11.63 11.84
5/15/00 90.0 12.00 11.75 11.94
5/16/00 200.4 12.00 11.56 11.56
5/17/00 409.6 12.25 11.75 12.00
5/18/00 97.4 12.25 11.13 11.31
5/19/00 28.2 11.31 11.00 11.25
5/22/00 57.4 11.19 10.75 10.94
5/23/00 122.6 11.25 10.63 11.06
5/24/00 36.3 11.00 10.81 10.94
5/25/00 36.3 11.63 10.88 11.19
5/26/00 110.2 10.88 10.44 10.88
5/30/00 60.1 11.25 10.69 11.00
5/31/00 124.9 11.75 11.31 11.63
6/01/00 145.0 12.00 11.38 11.44
6/02/00 350.7 12.50 11.00 12.13
</TABLE>
Project Flathead 11 U.S. Bancorp Piper Jaffray
<PAGE> 12
FLATHEAD - PRICE/VOLUME GRAPH (5 YEAR)
<TABLE>
<CAPTION>
---------------------------------------------------------------
DATE VOLUME HIGH LOW CLOSE
---------------------------------------------------------------
<S> <C> <C> <C> <C>
6/02/95 874.1 15.00 13.63 14.63
6/09/95 944.5 15.13 13.25 13.38
6/16/95 1,163.3 13.63 13.00 13.00
6/23/95 1,887.2 14.38 13.00 14.25
6/30/95 987.7 14.38 12.50 13.75
7/07/95 1,312.0 14.25 12.63 14.25
7/14/95 946.7 14.25 13.75 14.13
7/21/95 859.3 14.25 13.75 13.88
7/28/95 1,365.4 14.13 13.13 13.75
8/04/95 2,789.5 14.63 13.50 13.63
8/11/95 936.1 13.88 13.25 13.31
8/18/95 870.7 13.38 12.63 12.63
8/25/95 764.6 13.50 12.63 13.50
9/01/95 1,106.4 13.63 12.63 12.63
9/08/95 563.9 13.94 12.75 13.88
9/15/95 1,121.8 14.00 12.63 13.00
9/22/95 900.5 13.00 11.88 12.38
9/29/95 1,260.2 12.75 11.25 12.50
10/06/95 937.3 12.88 11.75 11.75
10/13/95 471.6 12.13 11.38 12.13
10/20/95 415.7 12.25 11.88 12.00
10/27/95 1,624.2 13.75 11.88 13.00
11/03/95 1,585.1 13.25 12.50 12.75
11/10/95 1,182.6 13.50 12.75 13.25
11/17/95 534.5 13.38 12.88 12.88
11/24/95 386.1 13.13 12.63 12.88
12/01/95 1,874.5 13.50 12.63 13.38
12/08/95 1,046.0 14.88 13.38 13.63
12/15/95 856.4 14.13 12.88 13.75
12/22/95 1,487.8 15.50 13.38 15.00
12/29/95 820.9 15.13 13.25 13.75
1/05/96 205.0 14.25 13.50 13.75
1/12/96 388.3 13.88 13.13 13.13
1/19/96 895.6 13.25 11.88 12.38
1/26/96 2,215.6 14.75 12.13 13.88
2/02/96 946.6 14.00 13.25 13.38
2/09/96 526.1 13.50 12.63 13.25
2/16/96 913.0 13.25 12.00 12.25
2/23/96 1,866.9 13.13 11.75 12.00
3/01/96 1,523.9 13.25 11.88 12.00
3/08/96 898.8 12.75 12.00 12.50
3/15/96 997.2 13.38 12.25 13.31
3/22/96 1,141.9 14.25 13.13 13.75
3/29/96 369.9 14.25 13.63 14.25
4/04/96 222.3 14.25 13.00 13.00
4/12/96 1,476.0 14.25 12.50 13.88
4/19/96 389.5 14.13 13.75 14.00
4/26/96 637.8 14.13 13.75 14.00
5/03/96 842.3 14.13 13.75 13.81
5/10/96 2,550.5 14.13 11.88 14.06
5/17/96 629.8 14.13 12.63 12.88
5/24/96 731.2 13.88 12.75 12.88
5/31/96 587.3 13.00 12.38 12.63
6/07/96 3,141.9 12.63 11.38 11.63
6/14/96 2,727.9 12.50 11.50 12.31
6/21/96 2,569.4 13.13 12.13 12.81
6/28/96 956.1 13.13 12.00 12.25
7/05/96 531.3 12.50 12.00 12.00
7/12/96 1,068.8 12.13 11.38 11.94
7/19/96 2,094.0 12.50 11.38 12.25
7/26/96 1,154.2 12.25 11.75 12.00
8/02/96 1,172.1 12.88 12.00 12.88
8/09/96 1,221.7 13.13 12.63 12.94
8/16/96 1,206.3 13.13 12.88 13.00
8/23/96 661.8 13.13 12.88 13.00
8/30/96 686.5 14.00 12.88 13.75
9/06/96 538.4 14.13 13.38 14.13
9/13/96 1,245.6 15.75 13.63 14.88
9/20/96 4,830.2 13.75 9.50 10.31
9/27/96 4,712.9 10.50 9.50 9.88
10/04/96 1,731.7 11.13 10.00 10.63
10/11/96 679.6 10.88 9.88 10.13
10/18/96 1,029.0 10.25 9.75 10.13
10/25/96 1,107.1 10.88 10.00 10.75
11/01/96 790.6 11.13 10.50 10.88
11/08/96 1,926.9 11.00 8.63 8.94
11/15/96 1,318.6 9.88 8.63 9.44
11/22/96 377.1 9.63 8.88 9.00
11/29/96 2,302.2 9.50 8.75 9.31
12/06/96 866.2 9.75 8.88 9.63
12/13/96 577.1 9.75 9.00 9.25
12/20/96 2,250.1 9.50 8.88 9.00
12/27/96 1,546.2 9.75 9.13 9.38
1/03/97 2,090.7 9.38 8.88 9.38
1/10/97 2,865.7 10.25 8.00 8.00
1/17/97 2,711.4 8.25 7.50 7.75
1/24/97 1,636.5 7.88 7.63 7.88
1/31/97 1,063.7 8.25 7.75 8.00
2/07/97 811.1 8.00 7.56 7.75
2/14/97 678.8 8.00 7.63 7.75
2/21/97 1,140.0 7.75 7.13 7.38
2/28/97 1,258.2 7.50 7.13 7.19
3/07/97 3,306.1 7.38 6.44 6.56
3/14/97 1,625.2 6.75 6.38 6.63
3/21/97 1,120.9 7.13 6.50 7.00
3/27/97 1,015.5 7.50 7.00 7.25
4/04/97 1,062.2 7.50 6.75 7.38
4/11/97 1,119.6 8.75 7.25 8.38
4/18/97 749.7 9.13 8.13 8.38
4/25/97 269.2 8.63 7.50 7.75
5/02/97 397.6 8.38 7.50 8.13
5/09/97 1,310.6 9.06 8.00 8.25
5/16/97 619.6 9.25 8.14 8.88
5/23/97 926.6 9.13 8.88 8.94
5/30/97 443.8 9.00 8.63 8.88
6/06/97 695.7 9.00 8.25 8.56
6/13/97 782.0 8.63 8.00 8.25
6/20/97 1,411.1 9.13 8.13 8.94
6/27/97 945.1 9.00 8.38 8.50
7/03/97 862.7 8.75 8.38 8.50
7/11/97 3,473.6 9.19 8.50 8.88
7/18/97 982.1 9.25 8.81 9.00
7/25/97 717.0 9.38 8.88 9.31
8/01/97 854.9 10.06 9.31 9.81
8/08/97 1,314.5 10.13 9.50 9.69
8/15/97 835.0 9.88 9.50 9.75
8/22/97 2,020.6 11.13 9.56 11.00
8/29/97 1,066.5 11.13 10.81 10.94
9/05/97 1,554.1 11.63 10.88 11.56
9/12/97 1,359.5 11.88 11.13 11.31
9/19/97 434.8 11.50 10.56 10.56
9/26/97 731.4 11.00 10.00 10.44
10/03/97 1,246.1 11.13 10.19 11.06
10/10/97 1,758.0 11.38 10.75 10.81
10/17/97 534.2 10.88 10.13 10.44
10/24/97 462.0 11.13 9.75 9.75
10/31/97 1,418.7 10.63 8.50 10.50
11/07/97 679.1 10.56 10.00 10.25
11/14/97 993.5 10.31 9.25 9.63
11/21/97 562.7 9.88 9.38 9.38
11/28/97 310.0 9.50 8.75 8.88
12/05/97 546.9 9.13 8.69 8.88
12/12/97 944.4 8.94 7.81 8.13
12/19/97 1,831.0 8.25 7.69 7.75
12/26/97 254.5 8.56 7.75 8.06
1/02/98 1,161.7 9.63 7.88 9.50
1/09/98 822.5 9.44 8.38 8.53
1/16/98 314.5 9.13 8.50 8.91
1/23/98 193.5 9.13 8.69 8.75
1/30/98 627.8 9.41 8.50 9.19
2/06/98 814.1 9.41 9.13 9.27
2/13/98 347.9 9.69 9.19 9.41
2/20/98 1,813.5 11.13 9.38 10.25
2/27/98 929.3 11.31 10.25 10.56
3/06/98 1,372.0 11.88 10.50 11.81
3/13/98 2,398.3 12.75 11.63 12.44
3/20/98 1,653.0 13.81 11.88 13.75
3/27/98 1,411.5 13.63 13.00 13.50
4/03/98 1,313.5 13.94 13.31 13.56
4/09/98 528.3 13.63 12.88 13.19
4/17/98 3,432.5 15.50 13.13 15.31
4/24/98 2,278.3 15.56 14.38 14.50
5/01/98 1,791.3 14.88 13.88 14.44
5/08/98 2,064.8 15.63 14.25 15.00
5/15/98 2,872.6 15.88 14.81 15.75
5/22/98 1,241.7 16.50 15.56 16.19
5/29/98 2,237.6 16.50 15.69 16.31
6/05/98 2,533.4 17.13 15.25 16.88
6/12/98 2,020.3 17.13 15.00 15.56
6/19/98 2,184.8 16.50 15.06 16.44
6/26/98 3,279.1 16.88 15.41 15.56
7/02/98 2,013.2 15.88 14.63 14.75
7/10/98 2,177.6 15.88 14.19 15.75
7/17/98 1,436.3 15.75 14.88 15.06
7/24/98 1,253.4 15.75 14.88 15.00
7/31/98 1,313.7 15.63 13.56 13.81
8/07/98 1,965.1 14.38 12.50 13.88
8/14/98 1,359.9 15.13 12.88 14.63
8/21/98 484.5 14.94 14.00 14.06
8/28/98 827.3 14.75 13.75 13.88
9/04/98 2,149.3 14.00 12.56 13.31
9/11/98 1,727.0 14.38 12.25 13.06
9/18/98 1,026.8 13.44 12.38 13.31
9/25/98 1,259.1 14.00 12.94 13.53
10/02/98 4,099.8 13.94 9.50 10.88
10/09/98 1,277.3 11.00 9.75 10.13
10/16/98 741.4 12.31 9.63 12.00
10/23/98 1,027.0 14.13 11.75 13.75
10/30/98 2,662.3 13.88 10.00 10.81
11/06/98 2,207.2 11.81 10.75 10.88
11/13/98 1,771.9 12.25 10.81 12.09
11/20/98 1,823.4 13.00 11.50 12.69
11/27/98 332.2 12.81 12.25 12.25
12/04/98 619.4 12.88 11.13 12.75
12/11/98 1,069.6 12.75 11.44 11.75
12/18/98 1,486.7 12.16 11.50 12.06
12/24/98 461.4 12.31 11.63 11.94
12/31/98 446.2 12.13 11.38 11.94
1/08/99 1,116.2 12.06 10.25 10.38
1/15/99 1,291.3 10.63 9.94 10.06
1/22/99 617.7 10.13 9.25 9.38
1/29/99 1,713.6 9.81 9.00 9.06
2/05/99 4,307.8 9.38 7.81 8.94
2/12/99 2,042.3 9.88 8.88 9.00
2/19/99 2,618.0 10.88 8.75 9.94
2/26/99 1,797.0 11.00 9.88 10.06
3/05/99 3,108.9 10.63 9.30 10.13
3/12/99 1,449.3 10.13 9.13 9.63
3/19/99 3,041.5 10.06 9.56 9.94
3/26/99 1,878.4 10.13 9.75 10.00
4/01/99 831.4 10.38 9.88 10.00
4/09/99 614.9 10.25 9.63 10.00
4/16/99 515.1 10.31 9.81 10.00
4/23/99 539.5 10.19 9.63 10.13
4/30/99 586.0 10.25 9.88 10.00
5/07/99 1,347.3 10.75 9.88 10.00
5/14/99 1,129.4 10.38 9.88 10.19
5/21/99 1,701.7 11.75 10.13 10.69
5/28/99 1,730.1 11.13 10.06 10.50
6/04/99 2,883.1 11.06 9.94 10.75
6/11/99 807.0 11.00 10.50 10.88
6/18/99 1,100.2 11.25 10.63 11.06
6/25/99 2,144.4 11.19 10.88 11.13
7/02/99 695.2 11.56 11.00 11.31
7/09/99 829.5 11.56 11.25 11.38
7/16/99 745.8 11.50 11.25 11.41
7/23/99 838.0 11.56 11.25 11.38
7/30/99 2,651.5 12.00 11.31 11.75
8/06/99 717.6 12.00 10.94 11.13
8/13/99 844.5 11.88 11.19 11.50
8/20/99 619.6 11.81 11.50 11.56
8/27/99 855.3 11.75 11.38 11.38
9/03/99 902.7 11.56 11.13 11.56
9/10/99 293.0 11.44 10.38 10.75
9/17/99 732.7 11.00 10.31 10.94
9/24/99 366.9 11.00 10.44 10.44
10/01/99 935.6 11.69 10.44 11.13
10/08/99 680.3 11.19 10.25 10.38
10/15/99 686.4 10.50 9.44 9.47
10/22/99 853.9 10.00 9.25 9.44
10/29/99 1,818.3 9.72 8.91 9.31
11/05/99 947.6 10.59 9.28 10.56
11/12/99 2,247.5 10.75 9.63 9.88
11/19/99 917.8 10.50 9.50 10.50
11/26/99 810.9 11.88 10.00 11.63
12/03/99 1,390.6 11.88 9.94 10.56
12/10/99 484.1 10.88 9.75 10.06
12/17/99 458.2 10.13 9.31 9.98
12/23/99 472.0 10.25 9.44 10.00
12/31/99 430.5 10.25 9.50 10.00
1/07/00 488.6 10.13 9.25 10.00
1/14/00 951.9 10.13 9.50 9.75
1/21/00 572.9 10.38 9.25 9.63
1/28/00 560.6 9.75 9.19 9.61
2/04/00 545.3 9.69 9.00 9.50
2/11/00 1,122.2 10.50 9.13 9.50
2/18/00 2,035.2 9.91 8.25 8.38
2/25/00 1,395.9 8.88 8.31 8.69
3/03/00 1,540.8 8.91 8.38 8.69
3/10/00 640.2 9.13 8.22 8.88
3/17/00 1,771.5 9.00 7.91 8.13
3/24/00 1,353.2 9.00 8.25 8.38
3/31/00 1,368.8 9.06 8.31 9.03
4/07/00 406.2 9.00 8.25 9.00
4/14/00 823.1 9.06 8.53 8.75
4/20/00 742.9 9.50 8.56 9.44
4/28/00 905.2 10.63 9.25 9.81
5/05/00 967.2 11.56 9.75 10.88
5/12/00 3,105.0 12.00 11.00 11.84
5/19/00 825.6 12.25 11.00 11.25
5/26/00 362.8 11.63 10.44 10.88
6/02/00 680.7 12.50 10.69 12.13
</TABLE>
Project Flathead 12 U.S. Bancorp Piper Jaffray
<PAGE> 13
RELATIVE STOCK PERFORMANCE - 1 YEAR
<TABLE>
<CAPTION>
Date BOCB SP8CQ COMP
<S> <C> <C> <C> <C> <C>
6/02/99 100.00 100.00 100.00 BOCB Buffets
6/03/99 97.02 100.94 98.80 SP8CQ S&P Supercomp Restaurant
6/04/99 102.38 103.73 101.89 COMP NASDAQ
6/07/99 104.17 102.62 103.77
6/08/99 101.19 103.00 101.73
6/09/99 104.17 102.75 103.57
6/10/99 103.57 104.56 102.15
6/11/99 103.57 103.78 100.64
6/14/99 102.38 103.05 98.60
6/15/99 102.98 103.92 99.27
6/16/99 101.79 105.02 103.51
6/17/99 104.17 105.97 104.59
6/18/99 105.36 104.95 105.39
6/21/99 104.76 104.13 108.13
6/22/99 104.76 103.31 106.08
6/23/99 105.95 102.78 106.81
6/24/99 104.76 101.47 105.00
6/25/99 105.95 100.67 104.94
6/28/99 105.95 102.04 106.99
6/29/99 108.93 105.11 108.62
6/30/99 109.52 104.80 110.43
7/01/99 107.74 103.47 111.26
7/02/99 107.74 102.83 112.69
7/06/99 108.33 101.89 112.51
7/07/99 108.33 102.01 112.77
7/08/99 107.74 101.21 113.96
7/09/99 108.33 107.84 114.83
7/12/99 108.93 106.62 114.72
7/13/99 108.33 108.05 114.22
7/14/99 109.52 107.23 115.86
7/15/99 108.33 106.92 116.73
7/16/99 108.63 107.65 117.76
7/19/99 109.52 106.17 116.36
7/20/99 107.74 104.71 112.32
7/21/99 107.14 104.12 113.54
7/22/99 108.93 102.21 110.36
7/23/99 108.33 101.66 110.69
7/26/99 109.52 102.41 107.68
7/27/99 113.10 101.69 110.15
7/28/99 112.50 100.82 111.24
7/29/99 109.52 99.88 108.53
7/30/99 111.90 99.76 108.47
8/02/99 109.52 100.98 107.86
8/03/99 110.12 100.32 106.40
8/04/99 110.71 99.01 104.42
8/05/99 109.52 97.98 105.49
8/06/99 105.95 95.39 104.75
8/09/99 110.12 95.56 103.56
8/10/99 108.33 93.25 102.37
8/11/99 111.90 93.66 105.45
8/12/99 111.90 93.10 104.81
8/13/99 109.52 94.78 108.44
8/16/99 110.71 95.83 108.75
8/17/99 111.31 97.27 109.82
8/18/99 110.71 98.13 109.26
8/19/99 110.71 96.78 107.77
8/20/99 110.12 97.21 108.88
8/23/99 111.31 97.47 111.81
8/24/99 111.31 96.44 113.15
8/25/99 110.71 98.77 115.34
8/26/99 110.12 98.20 114.07
8/27/99 108.33 99.24 113.42
8/30/99 108.93 97.60 111.52
8/31/99 106.55 96.29 112.62
9/01/99 107.74 95.03 113.09
9/02/99 108.93 94.95 112.41
9/03/99 110.12 97.74 116.88
9/07/99 104.17 98.07 116.64
9/08/99 102.98 97.65 115.47
9/09/99 101.79 97.55 117.25
9/10/99 102.38 99.84 118.69
9/13/99 100.60 101.52 116.95
9/14/99 98.81 101.11 117.92
9/15/99 99.40 100.25 115.69
9/16/99 100.00 98.36 115.39
9/17/99 104.17 98.70 117.97
9/20/99 104.17 97.89 118.65
9/21/99 101.19 97.82 115.98
9/22/99 101.19 98.97 117.50
9/23/99 99.40 99.64 113.05
9/24/99 99.40 99.23 112.66
9/27/99 102.38 99.61 113.54
9/28/99 102.38 99.82 113.31
9/29/99 99.40 98.69 112.25
9/30/99 110.71 100.08 112.90
10/01/99 105.95 100.15 112.52
10/04/99 105.36 101.79 114.95
10/05/99 104.17 99.81 115.10
10/06/99 99.40 99.63 117.46
10/07/99 100.30 99.08 117.61
10/08/99 98.81 99.96 118.67
10/11/99 98.21 100.07 119.88
10/12/99 97.62 98.95 118.09
10/13/99 98.21 97.09 115.16
10/14/99 94.05 95.87 115.39
10/15/99 90.18 95.34 112.31
10/18/99 93.15 95.81 110.55
10/19/99 91.07 98.07 110.52
10/20/99 90.48 99.27 114.62
10/21/99 89.88 96.65 115.19
10/22/99 89.88 93.24 115.79
10/25/99 88.39 91.08 115.77
10/26/99 86.90 91.51 115.58
10/27/99 89.58 91.57 115.22
10/28/99 88.69 94.06 118.20
10/29/99 88.69 95.56 121.95
11/01/99 91.07 96.17 122.00
11/02/99 90.48 96.07 122.58
11/03/99 91.07 96.38 124.51
11/04/99 96.43 101.33 125.63
11/05/99 100.60 104.24 127.54
11/08/99 102.38 105.00 129.25
11/09/99 95.83 104.00 128.48
11/10/99 94.05 103.84 129.75
11/11/99 94.05 105.30 131.45
11/12/99 94.05 107.43 132.43
11/15/99 95.24 105.73 132.36
11/16/99 94.94 104.34 135.38
11/17/99 96.73 103.98 134.41
11/18/99 95.83 105.51 137.60
11/19/99 100.00 105.46 138.51
11/22/99 97.02 104.23 139.47
11/23/99 102.38 103.40 137.43
11/24/99 104.17 101.07 140.62
11/26/99 110.71 99.75 141.74
11/29/99 100.00 101.21 140.66
11/30/99 102.38 100.87 137.15
12/01/99 101.19 103.27 137.88
12/02/99 97.02 100.86 141.95
12/03/99 100.60 101.99 144.74
12/06/99 101.19 101.94 145.78
12/07/99 100.00 99.76 147.46
12/08/99 92.86 98.73 147.43
12/09/99 95.54 97.57 147.76
12/10/99 95.83 95.85 148.83
12/13/99 95.83 93.65 150.39
12/14/99 92.26 92.39 146.84
12/15/99 95.24 93.42 148.90
12/16/99 94.64 93.59 152.73
12/17/99 95.09 93.38 154.29
12/20/99 92.86 94.24 155.56
12/21/99 95.83 93.57 160.79
12/22/99 95.24 92.78 161.87
12/23/99 95.24 91.93 163.19
12/27/99 96.43 92.91 163.43
12/28/99 90.48 92.41 163.30
12/29/99 94.64 91.76 166.15
12/30/99 95.83 91.14 165.96
12/31/99 95.24 92.29 167.30
1/03/00 94.05 90.59 169.84
1/04/00 92.26 88.91 160.40
1/05/00 89.29 90.09 159.41
1/06/00 91.37 89.28 153.23
1/07/00 95.24 90.64 159.62
1/10/00 95.09 91.82 166.49
1/11/00 93.45 93.02 161.21
1/12/00 91.96 95.46 158.28
1/13/00 94.64 95.99 162.69
1/14/00 92.86 96.29 167.09
1/18/00 92.26 94.15 169.82
1/19/00 98.21 95.18 170.67
1/20/00 95.83 92.54 172.24
1/21/00 91.67 92.50 174.12
1/24/00 88.69 90.29 168.40
1/25/00 89.29 90.08 171.33
1/26/00 89.88 84.11 167.32
1/27/00 89.88 87.26 166.07
1/28/00 91.52 85.57 159.80
1/31/00 88.69 86.74 161.99
2/01/00 86.31 85.94 166.58
2/02/00 86.90 83.78 167.49
2/03/00 90.48 83.42 173.12
2/04/00 90.48 84.36 174.48
2/07/00 92.86 83.94 177.67
2/08/00 93.75 86.54 182.02
2/09/00 96.13 85.21 179.38
2/10/00 95.09 83.33 184.41
2/11/00 90.48 82.41 180.70
2/14/00 90.48 80.83 181.65
2/15/00 92.86 80.88 181.74
2/16/00 91.07 80.05 182.03
2/17/00 85.71 80.94 187.01
2/18/00 79.76 78.28 181.37
2/22/00 83.33 77.84 180.16
2/23/00 80.06 78.69 187.07
2/24/00 82.74 76.28 189.84
2/25/00 82.74 75.39 188.72
2/28/00 81.55 75.62 188.20
2/29/00 82.74 76.96 193.09
3/01/00 83.33 76.74 196.68
3/02/00 83.33 75.44 195.46
3/03/00 82.74 78.44 202.05
3/06/00 86.31 77.43 201.65
3/07/00 82.14 73.61 199.30
3/08/00 78.27 74.78 201.33
3/09/00 83.33 77.92 207.48
3/10/00 84.52 77.59 207.56
3/13/00 85.12 78.17 201.74
3/14/00 80.95 74.56 193.50
3/15/00 77.68 79.39 188.40
3/16/00 76.79 84.33 193.94
3/17/00 77.38 83.21 197.26
3/20/00 80.36 83.56 189.52
3/21/00 79.76 85.95 193.70
3/22/00 79.17 85.45 200.00
3/23/00 82.74 85.54 203.12
3/24/00 79.76 84.94 204.04
3/27/00 85.12 84.85 203.85
3/28/00 80.95 85.28 198.73
3/29/00 80.95 88.61 190.95
3/30/00 83.33 90.59 183.27
3/31/00 86.01 91.67 188.00
4/03/00 83.04 92.92 173.64
4/04/00 81.85 93.32 170.57
4/05/00 78.57 92.77 171.40
4/06/00 82.74 89.83 175.45
4/07/00 85.71 90.47 182.80
4/10/00 81.25 88.65 172.18
4/11/00 84.52 91.34 166.74
4/12/00 85.12 89.46 154.98
4/13/00 85.71 85.96 151.16
4/14/00 83.33 83.21 136.54
4/17/00 84.52 83.61 145.50
4/18/00 86.61 82.27 155.96
4/19/00 86.90 83.23 152.38
4/20/00 89.88 88.30 149.81
4/24/00 92.56 94.21 143.17
4/25/00 100.00 94.14 152.57
4/26/00 97.62 94.41 149.24
4/27/00 90.77 94.29 155.16
4/28/00 93.45 91.49 158.72
5/01/00 95.24 93.13 162.72
5/02/00 97.62 93.45 155.63
5/03/00 95.83 89.92 152.41
5/04/00 100.60 87.66 152.94
5/05/00 103.57 88.41 156.92
5/08/00 107.14 87.99 150.85
5/09/00 108.93 90.14 147.39
5/10/00 108.33 92.41 139.15
5/11/00 111.90 92.52 143.87
5/12/00 112.80 91.11 145.08
5/15/00 113.69 92.23 148.32
5/16/00 110.12 94.53 152.83
5/17/00 114.29 93.76 149.85
5/18/00 107.74 92.37 145.48
5/19/00 107.14 90.16 139.38
5/22/00 104.17 91.56 138.31
5/23/00 105.36 92.01 130.10
5/24/00 104.17 92.22 134.46
5/25/00 106.55 89.08 131.78
5/26/00 103.57 89.48 131.77
5/30/00 104.76 88.19 142.22
5/31/00 110.71 86.69 139.82
6/01/00 108.93 86.77 147.28
6/02/00 115.48 88.50 156.77
</TABLE>
Project Flathead 13 U.S. Bancorp Piper Jaffray
<PAGE> 14
RELATIVE STOCK PERFORMANCE - 5 YEAR
<TABLE>
<CAPTION>
Date BOCB SP8CQ COMP BOCB Buffets
<S> <C> <C> <C> <C> <C>
6/02/95 100.00 100.00 100.00 SP8CQ S&P Supercomp Restaurant
6/09/95 91.45 99.36 101.31 COMP NASDAQ
6/16/95 88.89 101.79 104.09
6/23/95 97.44 103.47 107.55
6/30/95 94.02 104.29 106.93
7/07/95 97.44 103.50 111.09
7/14/95 96.58 103.79 114.47
7/21/95 94.87 104.92 110.17
7/28/95 94.02 106.08 115.16
8/04/95 93.16 103.62 113.53
8/11/95 91.03 103.99 115.02
8/18/95 86.32 102.69 118.13
8/25/95 92.31 102.38 116.84
9/01/95 86.32 101.58 116.78
9/08/95 94.87 104.48 121.43
9/15/95 88.89 108.65 120.41
9/22/95 84.62 110.38 120.67
9/29/95 85.47 105.09 119.54
10/06/95 80.34 105.05 115.93
10/13/95 82.91 107.03 116.66
10/20/95 82.05 109.78 119.08
10/27/95 88.89 108.64 117.48
11/03/95 87.18 108.59 122.07
11/10/95 90.60 112.12 121.87
11/17/95 88.03 115.38 119.71
11/24/95 88.03 114.45 118.01
12/01/95 91.45 116.44 120.89
12/08/95 93.16 116.89 121.70
12/15/95 94.02 119.03 118.04
12/22/95 102.56 115.24 119.92
12/29/95 94.02 116.68 120.52
1/05/96 94.02 115.05 118.39
1/12/96 89.74 112.62 115.49
1/19/96 84.62 118.95 116.66
1/26/96 94.87 122.21 119.24
2/02/96 91.45 122.25 122.81
2/09/96 90.60 127.92 125.39
2/16/96 83.76 123.26 124.94
2/23/96 82.05 127.14 128.04
3/01/96 82.05 124.01 124.41
3/08/96 85.47 125.68 121.85
3/15/96 91.03 129.45 125.96
3/22/96 94.02 128.67 126.26
3/29/96 97.44 125.02 126.17
4/04/96 88.89 127.44 128.09
4/12/96 94.87 125.93 126.11
4/19/96 95.73 124.44 130.44
4/26/96 95.73 128.12 135.96
5/03/96 94.44 125.37 135.70
5/10/96 96.15 126.31 137.78
5/17/96 88.03 127.87 142.26
5/24/96 88.03 129.34 142.94
5/31/96 86.32 127.70 142.44
</TABLE>
Project Flathead 14 U.S. Bancorp Piper Jaffray
<PAGE> 15
FLATHEAD - TRADING VOLUME AT VARIOUS PRICES (1 YEAR)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
$ 7.01-$7.50 $ 7.51-$8.00 $ 8.01-$8.50 $ 8.51-$9.00 $ 9.01-$9.50 $ 9.51-$10.00
0% 0% 8% 11% 9% 15%
$10.01-$10.50 $10.51-$11.00 $11.01-$11.50 $11.51-$12.00 $12.01-$12.50 $12.51-$13.00
12% 18% 15% 12% 0% 0%
$13.01-$13.50
0%
</TABLE>
Project Flathead 15 U.S. Bancorp Piper Jaffray
<PAGE> 16
FLATHEAD - TRADING VOLUME AT VARIOUS PRICES (5 YEAR)
<TABLE>
<S> <C> <C> <C> <C> <C>
$ 5.01-$6.00 $ 6.01-$7.00 $ 7.01-$8.00 $ 8.01-$9.00 $ 9.01-$10.00 $10.01-$11.00
0% 2% 5% 12% 16% 17%
$11.01-$12.00 $12.01-$13.00 $13.01-$14.00 $14.01-$15.00 $15.01-$16.00 $16.01-$17.00
11% 11% 13% 7% 5% 2%
$17.01-$18.00
0%
</TABLE>
Project Flathead 16 U.S. Bancorp Piper Jaffray
<PAGE> 17
INTEREST RATE DATA
[CHART]
Date Close
06/02/97 8.5000
06/03/97 8.5000
06/04/97 8.5000
06/05/97 8.5000
06/06/97 8.5000
06/09/97 8.5000
06/10/97 8.5000
06/11/97 8.5000
06/12/97 8.5000
06/13/97 8.5000
06/16/97 8.5000
06/17/97 8.5000
06/18/97 8.5000
06/19/97 8.5000
06/20/97 8.5000
06/23/97 8.5000
06/24/97 8.5000
06/25/97 8.5000
06/26/97 8.5000
06/27/97 8.5000
06/30/97 8.5000
07/01/97 8.5000
07/02/97 8.5000
07/03/97 8.5000
07/07/97 8.5000
07/08/97 8.5000
07/09/97 8.5000
07/10/97 8.5000
07/11/97 8.5000
07/14/97 8.5000
07/15/97 8.5000
07/16/97 8.5000
07/17/97 8.5000
07/18/97 8.5000
07/21/97 8.5000
07/22/97 8.5000
07/23/97 8.5000
07/24/97 8.5000
07/25/97 8.5000
07/28/97 8.5000
07/29/97 8.5000
07/30/97 8.5000
07/31/97 8.5000
08/01/97 8.5000
08/04/97 8.5000
08/05/97 8.5000
08/06/97 8.5000
08/07/97 8.5000
08/08/97 8.5000
08/11/97 8.5000
08/12/97 8.5000
08/13/97 8.5000
08/14/97 8.5000
08/15/97 8.5000
08/18/97 8.5000
08/19/97 8.5000
08/20/97 8.5000
08/21/97 8.5000
08/22/97 8.5000
08/25/97 8.5000
08/26/97 8.5000
08/27/97 8.5000
08/28/97 8.5000
08/29/97 8.5000
09/02/97 8.5000
09/03/97 8.5000
09/04/97 8.5000
09/05/97 8.5000
09/08/97 8.5000
09/09/97 8.5000
09/10/97 8.5000
09/11/97 8.5000
09/12/97 8.5000
09/15/97 8.5000
09/16/97 8.5000
09/17/97 8.5000
09/18/97 8.5000
09/19/97 8.5000
09/22/97 8.5000
09/23/97 8.5000
09/24/97 8.5000
09/25/97 8.5000
09/26/97 8.5000
09/29/97 8.5000
09/30/97 8.5000
10/01/97 8.5000
10/02/97 8.5000
10/03/97 8.5000
10/06/97 8.5000
10/07/97 8.5000
10/08/97 8.5000
10/09/97 8.5000
10/10/97 8.5000
10/13/97 8.5000
10/14/97 8.5000
10/15/97 8.5000
10/16/97 8.5000
10/17/97 8.5000
10/20/97 8.5000
10/21/97 8.5000
10/22/97 8.5000
10/23/97 8.5000
10/24/97 8.5000
10/27/97 8.5000
10/28/97 8.5000
10/29/97 8.5000
10/30/97 8.5000
10/31/97 8.5000
11/03/97 8.5000
11/04/97 8.5000
11/05/97 8.5000
11/06/97 8.5000
11/07/97 8.5000
11/10/97 8.5000
11/11/97 8.5000
11/12/97 8.5000
11/13/97 8.5000
11/14/97 8.5000
11/17/97 8.5000
11/18/97 8.5000
11/19/97 8.5000
11/20/97 8.5000
11/21/97 8.5000
11/24/97 8.5000
11/25/97 8.5000
11/26/97 8.5000
11/28/97 8.5000
12/01/97 8.5000
12/02/97 8.5000
12/03/97 8.5000
12/04/97 8.5000
12/05/97 8.5000
12/08/97 8.5000
12/09/97 8.5000
12/10/97 8.5000
12/11/97 8.5000
12/12/97 8.5000
12/15/97 8.5000
12/16/97 8.5000
12/17/97 8.5000
12/18/97 8.5000
12/19/97 8.5000
12/22/97 8.5000
12/23/97 8.5000
12/24/97 8.5000
12/26/97 8.5000
12/29/97 8.5000
12/30/97 8.5000
12/31/97 8.5000
01/02/98 8.5000
01/05/98 8.5000
01/06/98 8.5000
01/07/98 8.5000
01/08/98 8.5000
01/09/98 8.5000
01/12/98 8.5000
01/13/98 8.5000
01/14/98 8.5000
01/15/98 8.5000
01/16/98 8.5000
01/20/98 8.5000
01/21/98 8.5000
01/22/98 8.5000
01/23/98 8.5000
01/26/98 8.5000
01/27/98 8.5000
01/28/98 8.5000
01/29/98 8.5000
01/30/98 8.5000
02/02/98 8.5000
02/03/98 8.5000
02/04/98 8.5000
02/05/98 8.5000
02/06/98 8.5000
02/09/98 8.5000
02/10/98 8.5000
02/11/98 8.5000
02/12/98 8.5000
02/13/98 8.5000
02/17/98 8.5000
02/18/98 8.5000
02/19/98 8.5000
02/20/98 8.5000
02/23/98 8.5000
02/24/98 8.5000
02/25/98 8.5000
02/26/98 8.5000
02/27/98 8.5000
03/02/98 8.5000
03/03/98 8.5000
03/04/98 8.5000
03/05/98 8.5000
03/06/98 8.5000
03/09/98 8.5000
03/10/98 8.5000
03/11/98 8.5000
03/12/98 8.5000
03/13/98 8.5000
03/16/98 8.5000
03/17/98 8.5000
03/18/98 8.5000
03/19/98 8.5000
03/20/98 8.5000
03/23/98 8.5000
03/24/98 8.5000
03/25/98 8.5000
03/26/98 8.5000
03/27/98 8.5000
03/30/98 8.5000
03/31/98 8.5000
04/01/98 8.5000
04/02/98 8.5000
04/03/98 8.5000
04/06/98 8.5000
04/07/98 8.5000
04/08/98 8.5000
04/09/98 8.5000
04/13/98 8.5000
04/14/98 8.5000
04/15/98 8.5000
04/16/98 8.5000
04/17/98 8.5000
04/20/98 8.5000
04/21/98 8.5000
04/22/98 8.5000
04/23/98 8.5000
04/24/98 8.5000
04/27/98 8.5000
04/28/98 8.5000
04/29/98 8.5000
04/30/98 8.5000
05/01/98 8.5000
05/04/98 8.5000
05/05/98 8.5000
05/06/98 8.5000
05/07/98 8.5000
05/08/98 8.5000
05/11/98 8.5000
05/12/98 8.5000
05/13/98 8.5000
05/14/98 8.5000
05/15/98 8.5000
05/18/98 8.5000
05/19/98 8.5000
05/20/98 8.5000
05/21/98 8.5000
05/22/98 8.5000
05/26/98 8.5000
05/27/98 8.5000
05/28/98 8.5000
05/29/98 8.5000
06/01/98 8.5000
06/02/98 8.5000
06/03/98 8.5000
06/04/98 8.5000
06/05/98 8.5000
06/08/98 8.5000
06/09/98 8.5000
06/10/98 8.5000
06/11/98 8.5000
06/12/98 8.5000
06/15/98 8.5000
06/16/98 8.5000
06/17/98 8.5000
06/18/98 8.5000
06/19/98 8.5000
06/22/98 8.5000
06/23/98 8.5000
06/24/98 8.5000
06/25/98 8.5000
06/26/98 8.5000
06/29/98 8.5000
06/30/98 8.5000
07/01/98 8.5000
07/02/98 8.5000
07/06/98 8.5000
07/07/98 8.5000
07/08/98 8.5000
07/09/98 8.5000
07/10/98 8.5000
07/13/98 8.5000
07/14/98 8.5000
07/15/98 8.5000
07/16/98 8.5000
07/17/98 8.5000
07/20/98 8.5000
07/21/98 8.5000
07/22/98 8.5000
07/23/98 8.5000
07/24/98 8.5000
07/27/98 8.5000
07/28/98 8.5000
07/29/98 8.5000
07/30/98 8.5000
07/31/98 8.5000
08/03/98 8.5000
08/04/98 8.5000
08/05/98 8.5000
08/06/98 8.5000
08/07/98 8.5000
08/10/98 8.5000
08/11/98 8.5000
08/12/98 8.5000
08/13/98 8.5000
08/14/98 8.5000
08/17/98 8.5000
08/18/98 8.5000
08/19/98 8.5000
08/20/98 8.5000
08/21/98 8.5000
08/24/98 8.5000
08/25/98 8.5000
08/26/98 8.5000
08/27/98 8.5000
08/28/98 8.5000
08/31/98 8.5000
09/01/98 8.5000
09/02/98 8.5000
09/03/98 8.5000
09/04/98 8.5000
09/08/98 8.5000
09/09/98 8.5000
09/10/98 8.5000
09/11/98 8.5000
09/14/98 8.5000
09/15/98 8.5000
09/16/98 8.5000
09/17/98 8.5000
09/18/98 8.5000
09/21/98 8.5000
09/22/98 8.5000
09/23/98 8.5000
09/24/98 8.5000
09/25/98 8.5000
09/28/98 8.5000
09/29/98 8.5000
09/30/98 8.2500
10/01/98 8.2500
10/02/98 8.2500
10/05/98 8.2500
10/06/98 8.2500
10/07/98 8.2500
10/08/98 8.2500
10/09/98 8.2500
10/12/98 8.2500
10/13/98 8.2500
10/14/98 8.2500
10/15/98 8.2500
10/16/98 8.0000
10/19/98 8.0000
10/20/98 8.0000
10/21/98 8.0000
10/22/98 8.0000
10/23/98 8.0000
10/26/98 8.0000
10/27/98 8.0000
10/28/98 8.0000
10/29/98 8.0000
10/30/98 8.0000
11/02/98 8.0000
11/03/98 8.0000
11/04/98 8.0000
11/05/98 8.0000
11/06/98 8.0000
11/09/98 8.0000
11/10/98 8.0000
11/11/98 8.0000
11/12/98 8.0000
11/13/98 8.0000
11/16/98 8.0000
11/17/98 8.0000
11/18/98 7.7500
11/19/98 7.7500
11/20/98 7.7500
11/23/98 7.7500
11/24/98 7.7500
11/25/98 7.7500
11/27/98 7.7500
11/30/98 7.7500
12/01/98 7.7500
12/02/98 7.7500
12/03/98 7.7500
12/04/98 7.7500
12/07/98 7.7500
12/08/98 7.7500
12/09/98 7.7500
12/10/98 7.7500
12/11/98 7.7500
12/14/98 7.7500
12/15/98 7.7500
12/16/98 7.7500
12/17/98 7.7500
12/18/98 7.7500
12/21/98 7.7500
12/22/98 7.7500
12/23/98 7.7500
12/24/98 7.7500
12/28/98 7.7500
12/29/98 7.7500
12/30/98 7.7500
12/31/98 7.7500
01/04/99 7.7500
01/05/99 7.7500
01/06/99 7.7500
01/07/99 7.7500
01/08/99 7.7500
01/11/99 7.7500
01/12/99 7.7500
01/13/99 7.7500
01/14/99 7.7500
01/15/99 7.7500
01/19/99 7.7500
01/20/99 7.7500
01/21/99 7.7500
01/22/99 7.7500
01/25/99 7.7500
01/26/99 7.7500
01/27/99 7.7500
01/28/99 7.7500
01/29/99 7.7500
02/01/99 7.7500
02/02/99 7.7500
02/03/99 7.7500
02/04/99 7.7500
02/05/99 7.7500
02/08/99 7.7500
02/09/99 7.7500
02/10/99 7.7500
02/11/99 7.7500
02/12/99 7.7500
02/16/99 7.7500
02/17/99 7.7500
02/18/99 7.7500
02/19/99 7.7500
02/22/99 7.7500
02/23/99 7.7500
02/24/99 7.7500
02/25/99 7.7500
02/26/99 7.7500
03/01/99 7.7500
03/02/99 7.7500
03/03/99 7.7500
03/04/99 7.7500
03/05/99 7.7500
03/08/99 7.7500
03/09/99 7.7500
03/10/99 7.7500
03/11/99 7.7500
03/12/99 7.7500
03/15/99 7.7500
03/16/99 7.7500
03/17/99 7.7500
03/18/99 7.7500
03/19/99 7.7500
03/22/99 7.7500
03/23/99 7.7500
03/24/99 7.7500
03/25/99 7.7500
03/26/99 7.7500
03/29/99 7.7500
03/30/99 7.7500
03/31/99 7.7500
04/01/99 7.7500
04/05/99 7.7500
04/06/99 7.7500
04/07/99 7.7500
04/08/99 7.7500
04/09/99 7.7500
04/12/99 7.7500
04/13/99 7.7500
04/14/99 7.7500
04/15/99 7.7500
04/16/99 7.7500
04/19/99 7.7500
04/20/99 7.7500
04/21/99 7.7500
04/22/99 7.7500
04/23/99 7.7500
04/26/99 7.7500
04/27/99 7.7500
04/28/99 7.7500
04/29/99 7.7500
04/30/99 7.7500
05/03/99 7.7500
05/04/99 7.7500
05/05/99 7.7500
05/06/99 7.7500
05/07/99 7.7500
05/10/99 7.7500
05/11/99 7.7500
05/12/99 7.7500
05/13/99 7.7500
05/14/99 7.7500
05/17/99 7.7500
05/18/99 7.7500
05/19/99 7.7500
05/20/99 7.7500
05/21/99 7.7500
05/24/99 7.7500
05/25/99 7.7500
05/26/99 7.7500
05/27/99 7.7500
05/28/99 7.7500
06/01/99 7.7500
06/02/99 7.7500
06/03/99 7.7500
06/04/99 7.7500
06/07/99 7.7500
06/08/99 7.7500
06/09/99 7.7500
06/10/99 7.7500
06/11/99 7.7500
06/14/99 7.7500
06/15/99 7.7500
06/16/99 7.7500
06/17/99 7.7500
06/18/99 7.7500
06/21/99 7.7500
06/22/99 7.7500
06/23/99 7.7500
06/24/99 7.7500
06/25/99 7.7500
06/28/99 7.7500
06/29/99 7.7500
06/30/99 7.7500
07/01/99 8.0000
07/02/99 8.0000
07/06/99 8.0000
07/07/99 8.0000
07/08/99 8.0000
07/09/99 8.0000
07/12/99 8.0000
07/13/99 8.0000
07/14/99 8.0000
07/15/99 8.0000
07/16/99 8.0000
07/19/99 8.0000
07/20/99 8.0000
07/21/99 8.0000
07/22/99 8.0000
07/23/99 8.0000
07/26/99 8.0000
07/27/99 8.0000
07/28/99 8.0000
07/29/99 8.0000
07/30/99 8.0000
08/02/99 8.0000
08/03/99 8.0000
08/04/99 8.0000
08/05/99 8.0000
08/06/99 8.0000
08/09/99 8.0000
08/10/99 8.0000
08/11/99 8.0000
08/12/99 8.0000
08/13/99 8.0000
08/16/99 8.0000
08/17/99 8.0000
08/18/99 8.0000
08/19/99 8.0000
08/20/99 8.0000
08/23/99 8.0000
08/24/99 8.0000
08/25/99 8.2500
08/26/99 8.2500
08/27/99 8.2500
08/30/99 8.2500
08/31/99 8.2500
09/01/99 8.2500
09/02/99 8.2500
09/03/99 8.2500
09/07/99 8.2500
09/08/99 8.2500
09/09/99 8.2500
09/10/99 8.2500
09/13/99 8.2500
09/14/99 8.2500
09/15/99 8.2500
09/16/99 8.2500
09/17/99 8.2500
09/20/99 8.2500
09/21/99 8.2500
09/22/99 8.2500
09/23/99 8.2500
09/24/99 8.2500
09/27/99 8.2500
09/28/99 8.2500
09/29/99 8.2500
09/30/99 8.2500
10/01/99 8.2500
10/04/99 8.2500
10/05/99 8.2500
10/06/99 8.2500
10/07/99 8.2500
10/08/99 8.2500
10/11/99 8.2500
10/12/99 8.2500
10/13/99 8.2500
10/14/99 8.2500
10/15/99 8.2500
10/18/99 8.2500
10/19/99 8.2500
10/20/99 8.2500
10/21/99 8.2500
10/22/99 8.2500
10/25/99 8.2500
10/26/99 8.2500
10/27/99 8.2500
10/28/99 8.2500
10/29/99 8.2500
11/01/99 8.2500
11/02/99 8.2500
11/03/99 8.2500
11/04/99 8.2500
11/05/99 8.2500
11/08/99 8.2500
11/09/99 8.2500
11/10/99 8.2500
11/11/99 8.2500
11/12/99 8.2500
11/15/99 8.2500
11/16/99 8.2500
11/17/99 8.5000
11/18/99 8.5000
11/19/99 8.5000
11/22/99 8.5000
11/23/99 8.5000
11/24/99 8.5000
11/26/99 8.5000
11/29/99 8.5000
11/30/99 8.5000
12/01/99 8.5000
12/02/99 8.5000
12/03/99 8.5000
12/06/99 8.5000
12/07/99 8.5000
12/08/99 8.5000
12/09/99 8.5000
12/10/99 8.5000
12/13/99 8.5000
12/14/99 8.5000
12/15/99 8.5000
12/16/99 8.5000
12/17/99 8.5000
12/20/99 8.5000
12/21/99 8.5000
12/22/99 8.5000
12/23/99 8.5000
12/27/99 8.5000
12/28/99 8.5000
12/29/99 8.5000
12/30/99 8.5000
12/31/99 8.5000
01/03/00 8.5000
01/04/00 8.5000
01/05/00 8.5000
01/06/00 8.5000
01/07/00 8.5000
01/10/00 8.5000
01/11/00 8.5000
01/12/00 8.5000
01/13/00 8.5000
01/14/00 8.5000
01/18/00 8.5000
01/19/00 8.5000
01/20/00 8.5000
01/21/00 8.5000
01/24/00 8.5000
01/25/00 8.5000
01/26/00 8.5000
01/27/00 8.5000
01/28/00 8.5000
01/31/00 8.5000
02/01/00 8.5000
02/02/00 8.5000
02/03/00 8.7500
02/04/00 8.7500
02/07/00 8.7500
02/08/00 8.7500
02/09/00 8.7500
02/10/00 8.7500
02/11/00 8.7500
02/14/00 8.7500
02/15/00 8.7500
02/16/00 8.7500
02/17/00 8.7500
02/18/00 8.7500
02/22/00 8.7500
02/23/00 8.7500
02/24/00 8.7500
02/25/00 8.7500
02/28/00 8.7500
02/29/00 8.7500
03/01/00 8.7500
03/02/00 8.7500
03/03/00 8.7500
03/06/00 8.7500
03/07/00 8.7500
03/08/00 8.7500
03/09/00 8.7500
03/10/00 8.7500
03/13/00 8.7500
03/14/00 8.7500
03/15/00 8.7500
03/16/00 8.7500
03/17/00 8.7500
03/20/00 8.7500
03/21/00 8.7500
03/22/00 9.0000
03/23/00 9.0000
03/24/00 9.0000
03/27/00 9.0000
03/28/00 9.0000
03/29/00 9.0000
03/30/00 9.0000
03/31/00 9.0000
04/03/00 9.0000
04/04/00 9.0000
04/05/00 9.0000
04/06/00 9.0000
04/07/00 9.0000
04/10/00 9.0000
04/11/00 9.0000
04/12/00 9.0000
04/13/00 9.0000
04/14/00 9.0000
04/17/00 9.0000
04/18/00 9.0000
04/19/00 9.0000
04/20/00 9.0000
04/24/00 9.0000
04/25/00 9.0000
04/26/00 9.0000
04/27/00 9.0000
04/28/00 9.0000
05/01/00 9.0000
05/02/00 9.0000
05/03/00 9.0000
05/04/00 9.0000
05/05/00 9.0000
05/08/00 9.0000
05/09/00 9.0000
05/10/00 9.0000
05/11/00 9.0000
05/12/00 9.0000
05/15/00 9.0000
05/16/00 9.0000
05/17/00 9.5000
05/18/00 9.5000
05/19/00 9.5000
05/22/00 9.5000
05/23/00 9.5000
05/24/00 9.5000
05/25/00 9.5000
05/26/00 9.5000
05/30/00 9.5000
05/31/00 9.5000
06/01/00 9.5000
06/02/00 9.5000
Project Flathead 17 U.S. Bancorp Piper Jaffray
<PAGE> 18
FLATHEAD SUMMARY FINANCIAL DATA
Dollars in Thousands Except Per Share Data
<TABLE>
<CAPTION>
Quarter Ended Quarter Ended
1995 1996 1997 1998 1999 4/21/99 4/19/00
<S> <C> <C> <C> <C> <C> <C> <C>
RESTAURANT SALES $661,445 $750,707 $808,529 $868,858 $936,854 $277,838 $302,740
GROWTH % 36.5% 13.5% 7.7% 7.5% 7.8% 9.0%
GAGR % (1) 9.1%
Comparable Store Sales % (2.1%) (3.4%) (0.9%) 2.5% 1.9% 0.8% 3.4%
Restaurant Costs 567,290 659,784 712,004 745,282 800,255 240,234 256,052
Restaurant Profits 94,155 90,923 96,525 123,576 136,599 37,604 46,688
Restaurant Profit Margin % 14.2% 12.1% 11.9% 14.2% 14.6% 13.5% 15.4%
Franchise Fees & Royalties 1,356 1,506 1,395 1,478 1,451 474 489
Selling, General & Administrative 40,276 47,594 48,158 60,777 70,985 21,744 25,092
Operating Income (2) 55,235 44,835 49,762 64,277 67,065 16,334 22,085
Operating Margin % 8.4% 6.0% 6.2% 7.4% 7.2% 5.9% 7.3%
GAGR % (1) 5.0%
Net Income (3) 33,755 26,542 29,520 40,301 43,684 10,413 14,062
Net Margin % 5.1% 3.5% 3.7% 4.6% 4.7% 3.7% 4.6%
EARNINGS PER SHARE (3) $0.74 $0.59 $0.64 $0.85 $0.97 $0.22 $0.33
FIRST CALL CONSENSUS ESTIMATES
Depreciation & Amortization $32,617 $39,504 $41,192 $42,206 $43,254 $13,321 $13,083
EBITDA $87,852 $84,339 $90,954 $106,483 $110,319 $29,655 $35,168
EBITDA MARGIN % 13.3% 11.2% 11.2% 12.3% 11.8% 10.7% 11.6%
GAGR % (1) 5.9%
TOTAL RESTAURANTS 338 370 384 410 427
</TABLE>
<TABLE>
<CAPTION>
LTM 4/19/00 2000 2001 2002 2003 2004
<S> <C> <C> <C> <C> <C> <C>
RESTAURANT SALES $961,756 $1,025,016 $1,098,567 $1,190,944 $1,287,100 $1,391,195
GROWTH % 9.4% 7.2% 8.4% 8.1% 8.1%
GAGR % (1) 8.2%
Comparable Store Sales % NA 2.5% 2.5% 2.5% 2.5% 2.5%
Restaurant Costs 816,073 865,518 920,909 996,788 1,073,349 1,157,680
Restaurant Profits 145,683 159,497 177,658 194,156 213,751 233,515
Restaurant Profit Margin % 15.1% 15.6% 16.2% 16.3% 16.6% 16.8%
Franchise Fees & Royalties 1,466 1,489 1,430 1,430 1,430 1,430
Selling, General & Administrative 74,333 79,238 81,131 84,375 87,443 90,092
Operating Income (2) 72,816 81,656 97,707 110,827 127,212 144,853
Operating Margin % 7.6% 8.0% 8.9% 9.3% 9.9% 10.4%
GAGR % (1) 16.7%
Net Income (3) 47,333 50,822 62,484 72,004 85,099 97,702
Net Margin % 4.9% 5.0% 5.7% 6.0% 6.6% 7.0%
EARNINGS PER SHARE (3) $1.08 $1.13 $1.39 $1.59 $1.83 $2.11
FIRST CALL CONSENSUS ESTIMATES $1.16 $1.33
Depreciation & Amortization $43,016 $46,291 $48,932 $51,855 $54,866 $58,024
EBITDA $115,832 $127,947 $146,639 $162,682 $182,078 $202,877
EBITDA MARGIN % 12.0% 12.5% 13.3% 13.7% 14.1% 14.6%
GAGR % (1) 13.0%
TOTAL RESTAURANTS 444 463 482 501 524
</TABLE>
(1) Compound Annual Growth Rates calculated from 1995 to 1999 and 1999 to 2004
(2) Excludes merger related costs, duplicate site closing costs and impairment
and other site closing costs.
(3) Assumes a 38.0% tax rate in FY 1996.
Project Flathead 18 U.S. Bancorp Piper Jaffray
<PAGE> 19
FLATHEAD BALANCE SHEET DATA
Dollars in Thousands
<TABLE>
<CAPTION>
4/19/00
<S> <C>
ASSETS:
CURRENT ASSETS:
Cash & Cash Equivalents $ 92,604
Receivable from Landlords 1,162
Inventory 4,435
Prepaid Rents 1,023
Other Current Assets 7,999
Deferred Income Taxes 14,919
--------
TOTAL CURRENT ASSETS 122,142
LONG-TERM ASSETS:
Net Fixed Assets 358,007
Goodwill 16,071
Other Assets 7,238
--------
TOTAL ASSETS: $503,458
--------
</TABLE>
Project Flathead 19 U.S. Bancorp Piper Jaffray
<PAGE> 20
FLATHEAD BALANCE SHEET DATA
Dollars in Thousands
<TABLE>
<CAPTION>
4/19/00
<S> <C>
LIABILITIES:
CURRENT LIABILITIES:
Accounts Payable $ 33,913
Accrued Payroll & Related Benefits 27,051
Accrued Other 46,299
Income Taxes Payable 5,243
Current Portion of Capital Leases 26
--------
TOTAL CURRENT LIABILITIES 112,532
LONG-TERM LIABILITIES:
Long-term Debt 41,465
Other Liabilities 29,703
--------
TOTAL LONG-TERM LIABILITIES 71,168
TOTAL LIABILITIES: 183,700
TOTAL STOCKHOLDERS' EQUITY 319,758
--------
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY: $503,458
--------
</TABLE>
Project Flathead 20 U.S. Bancorp Piper Jaffray
<PAGE> 21
VALUATION ANALYSES
<PAGE> 22
SUMMARY OF ANALYSES
<TABLE>
<CAPTION>
COMPARABLE PUBLIC COMPANY ANALYSIS COMPARABLE PUBLIC COMPANIES[8](1)
FLATHEAD @
$13.85 LOW MEAN MEDIAN HIGH
<S> <C> <C> <C> <C> <C>
Company Value/LTM Revenue(2) 0.6x 0.2x 0.7x 0.7x 2.0x
Company Value/LTM EBITDA(2) 4.7x 3.4x 5.0x 4.8x 6.6x
Company Value/LTM EBIT(2) 7.6x 6.5x 7.5x 7.0x 10.2x
LTM P/E(3) 12.8x 5.7x 9.6x 9.1x 16.4x
2000 P/E(3) 12.2x 2.6x 8.4x 9.1x 12.4x
Price as a % of 52 week high 110.8% 25.9% 57.4% 59.6% 80.5%
</TABLE>
(1) Earnings estimates per First Call. Revenue estimates per IBES.
(2) LTM as of 4/19/00.
(3) Earnings per management projections.
<TABLE>
<CAPTION>
COMPARABLE TRANSACTION ANALYSIS COMPARABLE TRANSACTIONS[23]
FLATHEAD @
$13.85 LOW MEAN MEDIAN HIGH
<S> <C> <C> <C> <C> <C>
Company Value/LTM Revenue(1) 0.6x 0.2x 0.8x 0.7x 1.8x
Company Value/LTM EBITDA(1) 4.7x 4.2x 6.6x 6.3x 10.7x
Company Value/LTM EBIT(1) 7.6x 7.0x 13.1x 12.2x 31.3x
Equity Value/LTM Net Income(1) 13.1x 13.0x 18.9x 17.6x 32.6x
</TABLE>
(1) LTM as of 4/19/00.
Project Flathead 22 U.S. Bancorp Piper Jaffray
<PAGE> 23
SUMMARY OF ANALYSES
<TABLE>
<CAPTION>
DISCOUNTED CASH FLOW ANALYSIS
FLATHEAD LOW MIDPOINT HIGH
<S> <C> <C> <C> <C>
Equity Value Per Share $13.85 $11.30 $13.71 $16.46
</TABLE>
<TABLE>
<CAPTION>
PREMIUM ANALYSIS (RESTAURANTS) COMPARABLE TRANSACTIONS[11]
FLATHEAD @
$13.85 LOW MEAN MEDIAN HIGH
<S> <C> <C> <C> <C> <C>
One Day Premium 14.2% (33.3%) 25.9% 15.0% 132.0%
One Week Premium 27.4% (35.5%) 28.6% 16.6% 169.8%
One Month Premium 41.1% (11.8%) 40.3% 24.8% 176.2%
</TABLE>
<TABLE>
<CAPTION>
PREMIUM ANALYSIS (ALL INDUSTRIES) COMPARABLE TRANSACTIONS[136]
FLATHEAD @
$13.85 LOW MEAN MEDIAN HIGH
<S> <C> <C> <C> <C> <C>
One Day Premium 14.2% (72.7%) 26.7% 22.1% 149.0%
One Week Premium 27.4% (74.7%) 35.4% 28.8% 187.7%
One Month Premium 41.1% (71.0%) 42.0% 37.7% 186.0%
</TABLE>
Project Flathead 23 U.S. Bancorp Piper Jaffray
<PAGE> 24
COMPARABLE COMPANY ANALYSIS
<PAGE> 25
COMPARABLE COMPANY ANALYSIS
Overview
The Comparable Company Analysis reviews securities of publicly traded companies
deemed comparable to Flathead. Our analysis includes a comparison of the
financial data for Flathead and the Comparable Companies including revenues,
EBITDA, operating income, net income, EBITDA margin, operating margin, net
margin and projected earnings per share growth.
SELECTION PROCESS FOR FLATHEAD COMPARABLE RESTAURANT COMPANIES INCLUDING, AMONG
OTHERS, THE FOLLOWING CRITERIA:
- Eating and Drinking Places with SIC codes of 5812 and 5813
- Market capitalization greater than $25 million and less than $850 million
- Family dining restaurant companies
- Profitable operations
- Restaurant companies otherwise deemed comparable by U.S. Bancorp Piper
Jaffray
Based on the above criteria, the following companies were selected:
<TABLE>
<S> <C>
Bob Evans Farms, Inc. Luby's, Inc.
CBRL Group, Inc. Picadilly Cafeterias, Inc.
Garden Fresh Restaurant Corp. Ryan's Family Steak Houses, Inc.
IHOP Corp. Star Buffet, Inc.
</TABLE>
Project Flathead 25 U.S. Bancorp Piper Jaffray
<PAGE> 26
COMPARABLE COMPANY ANALYSIS SUMMARY
<TABLE>
<CAPTION>
COMPARABLE PUBLIC COMPANY ANALYSIS COMPARABLE PUBLIC COMPANIES[8] (1)
FLATHEAD @
$13.85 LOW MEAN MEDIAN HIGH
<S> <C> <C> <C> <C> <C>
Company Value/LTM Revenue(2) 0.6x 0.2x 0.7x 0.7x 2.0x
Company Value/LTM EBITDA(2) 4.7x 3.4x 5.0x 4.8x 6.6x
Company Value/LTM EBIT(2) 7.6x 6.5x 7.5x 7.0x 10.2x
LTM P/E(3) 12.8x 5.7x 9.6x 9.1x 16.4x
2000 P/E(3) 12.2x 2.6x 8.4x 9.1x 12.4x
Price as a % of 52 week high 110.8% 25.9% 57.4% 59.6% 80.5%
</TABLE>
(1) Earnings estimates per First Call. Revenue estimates per IBES.
(2) LTM as of 4/19/00.
(3) Earnings per management projections.
Project Flathead 26 U.S. Bancorp Piper Jaffray
<PAGE> 27
COMPARABLE COMPANY ANALYSIS - FLATHEAD
<TABLE>
<CAPTION>
CURRENT AVERAGE
LTM STOCK PRICE AS A DAILY
QUARTER PRICE % OF 52 MARKET VOLUME COMPANY
DATE 6/02/00 WEEK HIGH CAPITALIZATION (000'S) VALUE
---- ------- --------- -------------- ------- -----
<S> <C> <C> <C> <C> <C> <C>
Bob Evans Farms 1/00 $14.56 66.0% $538 190 $ 614
CBRL Group Inc(1) 4/00 $14.94 80.5% $872 657 $1,175
Garden Fresh Restaurant Corp 3/00 $10.75 52.1% $ 61 22 $ 101
IHOP Corp 3/00 $16.94 65.1% $337 38 $ 560
Lubys Inc 2/00 $ 9.25 54.0% $207 78 $ 308
Piccadilly Cafeterias Inc 3/00 $ 2.75 25.9% $ 29 22 $ 102
Ryan's Family Stk Houses Inc 3/00 $ 8.75 73.3% $284 149 $ 476
Star Buffet Inc 1/00 $ 2.75 42.3% $ 8 9 $ 24
MINIMUM 25.9% $ 9
MEAN 57.4% $146
MEDIAN 59.6% $ 58
MAXIMUM 80.5% $657
FLATHEAD(2) 4/00 $13.85 110.8% $643 212 $ 550
</TABLE>
<TABLE>
<CAPTION>
VALUATION MULTIPLES
--------------------------------------------
COMPANY COMPANY COMPANY
LTM 2000 VALUE/ VALUE/ VALUE/
P/E P/E REVENUE EBITDA EBIT
--- --- ------- ------ ----
<S> <C> <C> <C> <C> <C>
Bob Evans Farms 10.3x 10.0x 0.6x 4.9x 7.0x
CBRL Group Inc(1) 16.4x 12.4x 0.7x 6.6x 10.2x
Garden Fresh Restaurant Corp 9.1x 8.5x 0.7x 4.4x 7.3x
IHOP Corp 10.5x 9.4x 2.0x 6.4x 7.4x
Lubys Inc 7.5x 9.1x 0.6x 4.7x 7.0x
Piccadilly Cafeterias Inc NM NA 0.2x 4.8x NM
Ryan's Family Stk Houses Inc 7.7x 6.8x 0.7x 4.7x 6.5x
Star Buffet Inc 5.7x 2.6x 0.2x 3.4x 7.0x
MINIMUM 5.7x 2.6x 0.2x 3.4x 6.5x
MEAN 9.6x 8.4x 0.7x 5.0x 7.5x
MEDIAN 9.1x 9.1x 0.7x 4.8x 7.0x
MAXIMUM 16.4x 12.4x 2.0x 6.6x 10.2x
FLATHEAD(2) 12.8x 12.2x 0.6x 4.7x 7.6x
</TABLE>
(1) Figures, excluding shares, taken from press release dated May 18, 2000.
(2) Assumes conversion of convertible note.
Project Flathead 27 U.S. Bancorp Piper Jaffray
<PAGE> 28
COMPARABLE COMPANY ANALYSIS - FLATHEAD
<TABLE>
<CAPTION>
Latest Twelve Months ("LTM") Data
------------------------------------------------------------------
EBITDA EBIT
REVENUE EBITDA MARGIN EBIT MARGIN
------- ------ ------ ---- ------
<S> <C> <C> <C> <C> <C>
Bob Evans Farms $ 964 $124 12.9% $ 88 9.2%
CBRL Group Inc(1) $1,728 $178 10.3% $115 6.7%
Garden Fresh Restaurant Corp $ 147 $ 23 15.7% $ 14 9.3%
IHOP Corp $ 280 $ 88 31.3% $ 75 26.8%
Lubys Inc $ 497 $ 65 13.2% $ 44 8.9%
Piccadilly Cafeterias Inc $ 454 $ 21 (2) 4.7% $ 4 (2) 0.8%
Ryan's Family Stk Houses Inc $ 673 $102 15.2% $ 74 10.9%
Star Buffet Inc $ 99 $ 7 (3) 7.3% $ 3 (3) 3.5%
MINIMUM 4.7% 0.8%
MEAN 13.8% 9.5%
MEDIAN 13.0% 9.0%
MAXIMUM 31.3% 26.8%
FLATHEAD(4) $ 962 $116 (3) 12.0% $ 73 (3) 7.6%
</TABLE>
<TABLE>
<CAPTION>
Latest Twelve Months
("LTM") Data
---------------------- ESTIMATED
NET NET 5 YEAR EPS CASH AND TOTAL
INCOME MARGIN GROWTH RATE EQUIVALENTS DEBT
------ ------ ----------- ----------- ----
<S> <C> <C> <C> <C> <C>
Bob Evans Farms $56 5.8% 10.0% $ 5 $ 81
CBRL Group Inc(1) $48 2.8% 15.0% $14 $318
Garden Fresh Restaurant Corp $ 7 4.7% 21.0% $ 1 $ 41
IHOP Corp $33 11.7% 12.0% $ 2 $225
Lubys Inc $28 5.5% 10.0% $ 1 $101
Piccadilly Cafeterias Inc ($2)(2) NM 12.0% $ 0 $ 73
Ryan's Family Stk Houses Inc $41 6.2% 11.0% $ 2 $194
Star Buffet Inc $ 1 (3) 1.4% 20.0% $ 1 $ 17
MINIMUM 1.4% 10.0%
MEAN 5.4% 13.9%
MEDIAN 5.5% 12.0%
MAXIMUM 11.7% 21.0%
FLATHEAD(4) $49 (3) 5.1% 15.0% $93 $ 0
</TABLE>
(1) Figures, excluding shares, taken from press release dated May 18, 2000.
(2) Excludes gain on sale of assets.
(3) Excludes impairment of assets and site closing costs.
(4) Assumes $1.8 of after-tax net interest savings from conversion of
convertible note.
Project Flathead 28 U.S. Bancorp Piper Jaffray
<PAGE> 29
COMPARABLE TRANSACTION ANALYSIS
<PAGE> 30
COMPARABLE TRANSACTION ANALYSIS
OVERVIEW
The Comparable Transaction Analysis encompasses a review of transactions
involving acquired entities deemed comparable to Flathead. This analysis is
based upon information obtained from SEC filings, public company disclosures,
press releases, industry and popular press reports, databases and other sources.
TRANSACTION SELECTION PROCESS
- Eating and Drinking Places with SIC codes of 5812 and 5813
- Transaction value of greater than $10 million
- Excludes Repurchases and Spinoffs
- Restaurant industry transactions otherwise deemed comparable by U.S. Bancorp
Piper Jaffray
This search process yielded 23 transactions with sufficient data available for
the analysis.
Project Flathead 30 U.S. Bancorp Piper Jaffray
<PAGE> 31
COMPARABLE TRANSACTION ANALYSIS SUMMARY
<TABLE>
<CAPTION>
COMPARABLE TRANSACTION ANALYSIS COMPARABLE TRANSACTIONS [23]
FLATHEAD @
$13.85 LOW MEAN MEDIAN HIGH
---------- ----- ----- ------- -----
<S> <C> <C> <C> <C> <C>
Company Value/ LTM Revenue (1) 0.6x 0.2x 0.8x 0.7x 1.8x
Company Value/ LTM EBITDA (1) 4.7x 4.2x 6.6x 6.3x 10.7x
Company Value/ LTM EBIT (1) 7.6x 7.0x 13.1x 12.2x 31.3x
Equity Value/ LTM Net Income (1) 13.1x 13.0x 18.9x 17.6x 32.6x
</TABLE>
(1) LTM as of 4/19/00.
Project Flathead 31 U.S. Bancorp Piper Jaffray
<PAGE> 32
RESTAURANT INDUSTRY MERGERS & ACQUISITIONS
<TABLE>
<CAPTION>
Multiples
-------------------------------------------------
Company Equity Company Company Company Equity
Date Value Value Value/ Value/ Value/ Value/
Effective Target Acquiror $mil $mil Sales EBITDA EBIT Net Income
------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C> <C> <C> <C> <C>
12/29/99 EL Pollo Loco American Securities
Capital Part $ 128.0 $113.0 1.0x 5.7x NA NA
09/29/99 Sbarro Inc. Sbarro Family $ 468.3 $585.0 1.3x 5.9x 8.4x 16.2x
08/13/99 Rock Bottom Restaurants Inc. RB Capital Inc. $ 103.1 $ 82.9 0.6x 6.0x 12.0x 19.0x
08/09/99 Rally's Hamburgers, Inc. Checkers Drive-In
Restaurants $ 91.2 $ 35.8 0.6x 5.8x 17.0x NM
07/08/99 Coffee People Inc. Deidrich Coffee, Inc. $ 33.8 $ 31.7 0.7x NM NM NM
05/17/99 Au Bon Pain Bruckmann, Rosser,
Sherill, & Co. $ 138.4 $ 73.0 0.5x 6.5x 12.2x 19.9x
04/12/99 Rio Bravo (Applebee's) Chevy's
(J.W. Childs) $ 53.0 $ 47.0 0.6x 6.8x 15.3x 21.6x
04/05/99 Back Hay Restaurant Group SRC Holdings, Inc. $ 41.3 $ 37.7 0.4x 5.0x 10.1x 14.9x
02/16/99 Logan's Roadhouse CBRL Group, Inc. $ 177.1 $178.2 1.8x 10.7x 14.7x 21.3x
01/25/99 Spaghetti Warehouse(2) Cracken, Harkey
& Co. $ 49.8 $ 45.3 0.7x 9.1x 31.3x NM
12/21/98 Domino's Pizza Inc. Bain Capital $1,070.4 $920.7 0.9x 8.2x 14.3x NM
11/24/98 Fuddruckers Inc. King Cannon $ 43.0 $ 43.0 0.3x 4.2x 9.6x 32.6x
10/30/98 Koo Koo Roo Enterprises, Inc. Family Restaurants,
Inc. $ 66.3 $ 57.8 0.8x NM NM NM
09/01/98 Timber Lodge Steakhouse Inc. GB Foods Corp. $ 18.6 $ 18.2 0.6x 6.3x 14.6x 20.6x
07/31/98 Morrison Restaurants Inc. Picadilly
Cafeterias Inc. $ 58.3 $ 46.3 0.2x 8.8x MM NM
07/21/98 Bertucci's NB Restaurant
Co., Inc. $ 103.4 $ 93.6 0.7x 6.6x 16.1x 26.3x
07/09/98 Pollo Tropical Carrols Corp $ 89.5 $ 90.8 1.3x 6.8x 9.1x 15.3x
07/07/98 Hoolihans Restaurant Group Hampstead/Scoggia $ 125.0 $ 30.0 0.5x 5.7x 13.9x NM
04/28/98 Skyline Chili Inc. Fleet Equity Partners $ 26.1 $ 22.9 0.8x 4.6x 7.0x 13.0x
04/03/98 DavCo Restaurant Inc. Citicorp Venture
Capital $ 180.3 $133.6 0.8x 7.3x 11.7x 14.7x
02/03/98 Sagebrush Inc. WSMP Inc. $ 41.6 $ 39.4 0.8x 5.4x 8.9x 14.2x
01/22/98 El Chico Restaurants Inc. Cracken, Harkey
& Co. $ 57.8 $ 49.4 0.6x 6.0x 14.3x NM
01/05/98 International Dairy Queen Inc. Berkshire
Hathaway, Inc. $ 536.9 $585.0 1.3x 8.0x 9.0x 15.4x
MINIMUM .24x 4.2x 7.0x 13.0x
MEAN .78x 6.6x 13.1x 18.9x
MEDIAN .72x 6.3x 12.2x 17.6x
MAXIMUM 1.75x 10.7x 31.3x 32.6x
Flathead(6) $ 554.1 $642.7 0.6x 4.7x 7.6x 13.1x
Target LTM Financial Information
---------------------------------------------------------------------
Net Net
Date Sales EBITDA EBIT Income
Effective Target Acquiror $mil $mil % $mil % $mil(1) %
------------------------------------------------------------------------------------------------------------------------------------
<C> <C> <S> <C> <C> <C> <C> <C> <C> <C>
12/29/99 EL Pollo Loco American Securities
Capital Part $132.4 $22.6 17% NA NA NA NA
09/29/99 Sbarro Inc. Sbarro Family $348.2 $79.0 23% $55.4 15.9% $36.2 10.4%
08/13/99 Rock Bottom Restaurants Inc. RB Capital Inc. $160.1 $17.2 11% $8.6 5.4% $4.4 NM
08/09/99 Rally's Hamburgers, Inc. Checkers Drive-In $144.8 $15.7 11% $5.4 3.7% ($1.4) NM
Restaurants
07/08/99 Coffee People Inc. Diedrich Coffee, Inc. $49.7 $2.1 4% $0.3 0.5% ($0.1) NM
05/17/99 Au Bon Pain Bruckmann, Rosser,
Sherill, & Co. $252.6 $21.1 8% $11.2 4.4% $3.7 1.4%
04/12/99 Rio Bravo (Applebee's) Chevy's
(J.W. Childs) $94.9 $7.8 8% $3.5 3.6% $2.2 NM
04/05/99 Back Hay Restaurant Group SRC Holdings, Inc. $97.3 $8.2 8% $4.1 4.2% $2.5 2.6%
02/16/99 Logan's Roadhouse CBRL Group, Inc. $101.0 $16.6 16% $12.0 11.5% $8.4 8.3%
01/25/99 Spaghetti Warehouse(2) Cracken, Harkey $67.7 $5.4 8% $1.6 2.3% $0.8 1.2%
& Co.
12/21/98 Domino's Pizza Inc. Bain Capital $1,176.8 $130.6 11% $74.9 6.4% $1.8 0.2%
11/24/98 Fuddruckers Inc. King Cannon $134.2 $10.3 8% $4.5 3.3% $1.3 1.0%
10/30/98 Koo Koo Roo Enterprises, Inc. Family Restaurants,
Inc. $86.2 ($4.5) NM ($12.6) NM ($13.8) NM
09/01/98 Timber Lodge Steakhouse Inc. GB Foods Corp. $29.9 $3.0 10% $1.3 4.3% $0.9 3.0%
07/31/98 Morrison Restaurants Inc. Picadilly
Cafeterias Inc. $241.3 $6.6 3% ($3.4) NM ($2.3) NM
07/21/98 Bertucci's NB Restaurant
Co., Inc. $143.2 $15.6(3) 11% $6.4 4.5% $3.6 2.5%
07/09/98 Pollo Tropical Carrols Corp $67.7 $13.2 20% $9.8 14.5% $5.9 8.8%
07/07/98 Hoolihans Restaurant Group Hampstead/Scoggia $262.6 $22.0 8% $9.0 3.4% ($2.7) NM
04/28/98 Skyline Chili Inc. Fleet Equity Partners $34.4 $5.6 16% $3.7 10.8% $1.8 5.1%
04/03/98 DavCo Restaurant Inc. Citicorp Venture
Capital $238.4 $24.6 10% $15.4 6.5% $9.1 3.8%
02/03/98 Sagebrush Inc. WSMP Inc. $49.8 $7.7 15% $4.6 9.3% $2.8 5.6%
01/22/98 El Chico Restaurants Inc. Cracken, Harkey
& Co. $102.5 $9.7 9% $4.1(4) 4.0% $0.8 (4) 0.8%
01/05/98 International Dairy Queen Inc. Berkshire
Hathaway, INc. $421.1 $67.3 16% $59.7 14.2% $38.1 9.0%
MINIMUM 2.7% 0.5% 0.2%
MEAN 11.5% 6.7% 4.2%
MEDIAN 10.5% 4.5% 3.0%
MAXIMUM 22.7% 15.9% 10.4%
Flathead(6) $961.8 $115.8(5) 12% $72.8(5) 7.6% $49.1 (5) 5.1%
</TABLE>
(1) Fully Taxed.
(2) Based on LTM information available at the day of the announcement.
(3) Deferred rent expense amount ($.388) on Bertucci's income statement have
been reclassified from operating expense to depreciation and amortization.
(4) Excludes special charges.
(5) Excludes impairment of assets and site closing costs.
(6) Assumes conversion of convertible note.
Project Flathead U.S. Bancorp Piper Jaffray
32
<PAGE> 33
DISCOUNTED CASH FLOW ANALYSIS
<PAGE> 34
DISCOUNTED CASH FLOW ANALYSIS
Overview
- The Discounted Cash Flow Analysis is used to calculate a range of
theoretical values for Flathead based on the (i) present value of
implied future cash flows of Flathead and (ii) a terminal value which
is an estimate of the future value of Flathead. This range of aggregate
and per share equity values can then be compared to the consideration
being received in the transaction.
- For purposes of this analysis, we used a range of discount rates of 19%
to 23% and a range of EBITDA (earnings before interest, taxes,
depreciation and amortization) multiples for the terminal value of 3.5x
to 5.5x.
- The following pages contain the projected income statement and working
capital assumptions for 2000 through 2004 derived using assumptions
from management.
<TABLE>
<CAPTION>
Discounted Cash Flow Analysis
-------------------------------------------------------------------------------
FLATHEAD LOW MIDPOINT HIGH
-----------------------------------------------
<S> <C> <C> <C> <C>
Equity Value Per Share $13.85 $11.30 $13.71 $16.46
</TABLE>
Project Flathead U.S. Bancorp Piper Jaffray
34
<PAGE> 35
DISCOUNTED CASH FLOW ANALYSIS
$ IN 000'S EXCEPT PER SHARE DATA
<TABLE>
<CAPTION>
PROJECTED
2000 (1) 2001 2002 2003 2004
-------- ------- -------- -------- --------
<S> <C> <C> <C> <C> <C>
OPERATING INCOME $58,921 $97,707 $110,827 $127,212 $144,853
Income Taxes 22,649 38,719 43,594 49,518 56,312
------- ------- -------- -------- --------
After Tax Operating Income 36,272 58,988 67,233 77,694 88,541
Depreciation and Amortization 33,208 48,932 51,855 54,866 58,024
(Increase) Decrease in Working Capital 2,384 3,576 3,667 3,483 4,217
Capital Expenditures (35,781) (58,900) (60,651) (63,481) (80,903)
------- ------- -------- -------- --------
FREE CASH FLOW 36,082 52,596 62,104 72,562 69,879
Plus: Terminal Value @ 4.5x EBITDA 912,945
------- ------- -------- -------- --------
TOTAL CASH FLOW $36,082 $52,596 $62,104 $72,562 $982,824
</TABLE>
<TABLE>
<CAPTION>
NET PRESENT VALUE CALCULATION 4/19/00
<S> <C>
NPV of Free Cash Flow $171,043
NPV of Terminal Value $372,403
-----------
COMPANY VALUE $543,446
Cash and Cash Equivalents $92,604
Debt and Preferred(2) $0
-----------
EQUITY VALUE $636,050
Share Outstanding(2) 46,404,546
EQUITY VALUE PER SHARE $13.71
</TABLE>
<TABLE>
<CAPTION>
ASSUMPTIONS
<S> <C>
EBITDA Multiple: 4.5x
Discount Rate: 21.0%
Tax Rate: 38.0%
</TABLE>
<TABLE>
<CAPTION>
SENSITIVITY ANALYSIS - EQUITY VALUE
EBITDA Discount Rate
Multiple 19.0% 21.0% 23.0%
-------------------------------------------------------
<S> <C> <C> <C>
3.5x $584,696 $553,294 $524,557
4.5x $674,202 $636,050 $601,171
5.5x $763,708 $718,806 $677,785
</TABLE>
<TABLE>
<CAPTION>
SENSITIVITY ANALYSIS - EQUITY VALUE PER SHARE
EBITDA Discount Rate
Multiple 19.0% 21.0% 23.0%
-------------------------------------------------------
<S> <C> <C> <C>
3.5x $12.60 $11.92 $11.30
4.5x $14.53 $13.71 $12.95
5.5x $16.46 $15.49 $14.61
</TABLE>
(1) For the period 4/19/00 to 12/31/00.
(2) Assumes conversion of convertible note.
Project Flathead U.S. Bancorp Piper Jaffray
35
<PAGE> 36
PREMIUMS PAID ANALYSIS
<PAGE> 37
PREMIUMS PAID ANALYSIS
- The following is an analysis of premiums paid relative to public market
pre-announcement trading prices for control acquisitions in the
restaurant industry as well as acquisitions with similar parameters
outside of the restaurant industry.
- This analysis examines the difference between the acquisition cost and
the target's market price at distinct points in time. This analysis is
based upon information obtained from SEC filings, public company
disclosures, press releases, industry and popular press reports,
databases and other sources.
- We reviewed two distinct comparable groups for the Premiums Paid
Analysis:
- Restaurant Industry Acquisitions
* Completed transactions
* Transaction size greater than $50 million
* 1/1/97 - present
- Non-Industry Specific Transactions
* Completed transactions
* Transaction size greater than $500 million and less than $1
billion
* 1/1/99 - present
37
<PAGE> 38
PREMIUMS PAID ANALYSIS
<TABLE>
<CAPTION>
PREMIUM ANALYSIS (RESTAURANTS) COMPARABLE TRANSACTIONS [ 11 ]
FLATHEAD @
$13.85 Low Mean Median High
------ --- ---- ------ ----
<S> <C> <C> <C> <C> <C>
One Day Premium 14.2% (33.3%) 25.9% 15.0% 132.0%
One Week Premium 27.4% (35.5%) 28.6% 16.6% 169.8%
One Month Premium 41.1% (11.8%) 40.3% 24.8% 176.2%
</TABLE>
<TABLE>
<CAPTION>
PREMIUM ANALYSIS (ALL INDUSTRIES) COMPARABLE TRANSACTIONS [ 136]
FLATHEAD @
$13.85 Low Mean Median High
------ --- ---- ------ ----
<S> <C> <C> <C> <C> <C>
One Day Premium 14.2% (72.7%) 26.7% 22.1% 149.0%
One Week Premium 27.4% (74.7%) 35.4% 28.8% 187.7%
One Month Premium 41.1% (71.0%) 42.0% 37.7% 186.0%
</TABLE>
38
<PAGE> 39
PREMIUMS PAID ANALYSIS
Restaurant Industry Completed Deals
1/1/1997 - 5/25/00
Company Value > $50 million
<TABLE>
<CAPTION>
Date Date Target Business Company Price Per
Announced Effective Target Name Description Acquiror Name Value Share
--------- --------- ----------- ----------- ------------- ----- -----
<S> <C> <C> <C> <C> <C> <C>
11/25/98 9/29/99 Sbarro Inc Operate, franchise Investor Group $498 $28.85
restaurants
7/26/99 9/2/99 Host Marriott Services Own,op concession stands Autogrill(Edizione $947 $15.75
Holding)
3/19/99 8/13/99 Rock Bottom Restaurants Own,op restaurants RB Capital Inc $116 $10.00
Inc
12/11/98 2/16/99 Logans Roadhouse Inc Own,operate restaurants Cracker Barrel Old $178 $24.00
Country Str
4/3/98 7/21/98 Bertucci's Inc Own and operate NE Restaurant Co Inc $104 $10.50
restaurants
6/4/98 7/20/98 Pollo Tropical Inc Own and operate Carrols Corp $97 $11.00
restaurants
9/23/97 1/22/98 El Chico Restaurants Inc Own and operate Investor Group $59 $12.75
restaurants
12/31/97 12/30/97 Unique Casual Restaurants Own,operate eating places Investor Group $82 $7.04
Inc
8/4/97 12/23/97 Perkins Family Restaurant Own,op franchised Restaurant Co $215 $14.00
LP restaurants
9/2/97 12/3/97 Ground Round Restaurants Own and operate GRR Holdings LLC $57 $1.65
Inc restaurants
5/28/97 7/17/97 DAKA International Inc Own,operate restaurants Compass Group PLC $189 $7.50
</TABLE>
<TABLE>
<CAPTION> PRICE PRIOR
PREMIUM PAID TO ANNOUNCEMENTS
------------ ------------------------
1 Day 1 Week 1 Month 1 Day 1 Week 1 Month
----- ------ ------- ----- ------ -------
<S> <C> <C> <C> <C> <C>
8.4% 10.4% 7.9% $26.63 $26.13 $26.75
61.5% 73.8% 101.6% $9.75 $9.06 $7.81
53.8% 53.8% 95.1% $6.50 $6.50 $5.13
13.9% 10.3% 33.8% $21.06 $21.75 $17.94
35.5% 35.5% 35.5% $7.75 $7.75 $7.75
10.0% 7.3% 18.1% $10.00 $10.25 $9.31
64.5% 75.9% 104.0% $7.75 $7.25 $6.25
4.3% 14.9% 6.3% $6.75 $6.13 $6.63
28.7% 26.6% 31.8% $10.88 $11.06 $10.63
10.0% 10.0% (5.7%) $1.50 $1.50 $1.75
(33.3%) (35.5%) (7.7%) $11.25 $11.63 $8.13
</TABLE>
<TABLE>
<CAPTION>
------------------------------------
<S> <C> <C> <C>
Minimum (33.3%) (35.5%) (7.7%)
Mean 23.4% 25.7% 38.2%
Median 13.9% 14.9% 31.8%
Maximum 64.5% 75.9% 104.0%
------------------------------------
</TABLE>
39
<PAGE> 40
PREMIUMS PAID ANALYSIS
Completed Deals
1/1/1999 - 5/25/00
$500 Million<Company Value <$1 Billion
<TABLE>
<CAPTION>
Date Date Company Price Per
Announced Effective Target Name Target Business Description Acquiror Name Value Share
--------- ---------- ----------- --------------------------- ------------- ------- ---------
<S> <C> <C> <C> <C> <C> <C>
2/25/00 5/15/00 Mission Critical Software Develop LAN products NetIQ Corp $961 $69.16
Inc
1/31/00 5/12/00 Thermo Optek Corp Mnfr spectroscopy Thermo Instrument Systems $811 $15.00
instruments Inc
12/20/99 4/20/00 NFO Worldwide Inc Pvd advertising research Interpublic Group of Cos Inc $678 $21.19
svcs
1/26/00 4/14/00 Interleaf Inc Dvlp,whl e-publishing BroadVision Inc $727 $54.33
software
11/8/99 4/4/00 Carolina First Bancshares,NC Commercial bank holding co First Charter Corp, $893 $42.50
Concord,NC
2/17/00 4/3/00 Shorewood Packaging Corp Mnfr paperboard packaging International Paper Co $876 $21.00
prod
11/16/99 4/3/00 Arcadia Financial Ltd Provide loan brokerage svcs Associates First Capital $767 $4.90
Corp
2/6/00 3/28/00 United Payors & United Pvd ins contract mediator BCE Emergis Inc(BCE Inc) $526 $27.00
svcs
8/1/99 3/20/00 Chicago Title Corp Pvd title insurance,trust Fidelity National Financial $899 $52.00
svcs
11/9/99 3/16/00 Aironet Wireless Dvlp,mnfr wireless LAN Cisco Systems Inc $633 $47.97
Communication prods
12/20/99 3/13/00 Maker Communications Inc Manufacture silicon Conexant Systems Inc $828 $45.95
technology
1/25/00 3/10/00 CompUSA Inc Own,operate computer stores Grupo Sanborns(Grupo Carso) $1,002 $10.10
10/4/99 3/8/00 Preview Travel Inc Pvd online travel agency Travelocity.com(Sabre Hldg) $669 $43.88
svcs
10/19/99 3/7/00 Foremost Corp of America Insurance holding company Farmers Insurance Group $897 $29.25
12/1/99 3/1/00 Ardent Software Inc Develop applications Informix Corp $884 $38.50
software
9/22/99 3/1/00 Pacific Bank NA,CA Commercial bank City National $717 $29.00
Corp,California
6/15/99 3/1/00 Yankee Energy System Inc Gas utility; holding Northeast Utilities $671 $45.00
company
7/29/99 2/11/00 Merchants Bancorp,Aurora,IL Bank holding company Old Kent Finl Corp,Michigan $928 $35.12
2/17/99 2/10/00 PSNC Pvd natural gas distn svcs SCANA Corp $931 $33.00
1/19/00 2/9/00 Trigen Energy Corp Operate co-generation Elyo(Suez Lyonnaise des $700 $23.50
plants Eaux)
11/17/99 2/8/00 Safeskin Corp Mnfr latex med exam gloves Kimberly-Clark Corp $823 $13.12
4/23/99 2/8/00 Connecticut Energy Gas utility holding company Energy East Corp $608 $42.00
8/13/99 2/4/00 Fidelity Financial of Ohio Bank holding company Provident Financial Group $797 $21.00
Inc Inc
12/21/99 2/3/00 Micro Warehouse Inc Pvd catalog,online retail Investor Group $543 $19.00
svcs
5/17/99 1/13/00 Wyman-Gordon Co Nonferrous iron,steel Precision Castparts Corp $829 $20.00
forgings
6/1/99 1/7/00 Aquarion Co Water utility holding Kelda Group PLC $581 $37.05
company
4/12/99 1/7/00 Statewide Financial Corp,NJ Commercial bank Independence Community Bank $549 $25.31
7/12/99 1/6/00 Global Industrial Mnfr industrial machinery RHI AG $562 $13.00
Technologies
11/5/99 12/31/99 Synthetic Industries Inc Mnfr polypropylene fabric Investcorp $548 $33.00
5/26/99 12/30/99 Capital Re Corp Reinsurance co;holding co ACE Ltd $907 $25.16
10/14/99 12/22/99 LeukoSite Inc Mnfr pharmaceutical Millennium Pharmaceuticals $574 $35.87
products Inc
12/20/99 12/20/99 Ascent Entertainment Group Pvd entertainment services Investor Group $643 $12.90
Inc
10/10/99 12/16/99 Authentic Fitness Corp Mnfr,whl swimwear,swim Warnaco Group Inc $541 $20.80
access
8/27/99 12/8/99 Destia Communications Inc Pvd telecommunications svcs Viatel Inc $985 $18.63
</TABLE>
<TABLE>
<CAPTION>
PRICE PRIOR
PREMIUM PAID TO ANNOUNCEMENT
------------------------- -------------------------
1 Day 1 Week 1 Month 1 Day 1 Week 1 Month
----- ------ ------- ----- ------ -------
<S> <C> <C> <C> <C> <C>
10.7% 8.3% 13.8% $62.50 $63.88 $60.75
6.7% (5.1%) 41.2% $14.06 $15.81 $10.63
51.4% 71.2% 58.4% $14.00 $12.38 $13.38
40.0% 42.5% 55.8% $38.81 $38.13 $34.88
63.5% 61.9% 104.8% $26.00 $26.25 $20.75
57.0% 69.7% 59.2% $13.38 $12.38 $13.19
5.9% 28.5% 17.0% $4.63 $3.81 $4.19
31.7% 46.9% 63.6% $20.50 $18.38 $16.50
21.6% 42.5% 47.5% $42.75 $36.50 $35.25
10.9% 8.1% 92.4% $43.25 $44.38 $24.94
34.2% 44.2% 83.8% $34.25 $31.88 $25.00
6.3% 85.7% 92.4% $9.50 $5.44 $5.25
149.0% 187.7% 165.9% $17.63 $15.25 $16.50
22.2% 22.2% 22.5% $23.94 $23.94 $23.88
46.7% 51.4% 80.6% $26.25 $25.44 $21.31
42.3% 49.7% 54.7% $20.38 $19.38 $18.75
38.5% 46.9% 51.9% $32.50 $30.63 $29.63
21.1% 26.8% 27.7% $29.00 $27.69 $27.50
45.1% 45.1% 32.0% $22.75 $22.75 $25.00
38.2% 42.4% 31.9% $17.00 $16.50 $17.81
28.0% 45.0% 66.6% $10.25 $9.05 $7.88
34.1% 50.0% 65.1% $31.31 $28.00 $25.44
73.2% 75.0% 73.2% $12.13 $12.00 $12.13
24.6% 51.2% 47.6% $15.25 $12.56 $12.88
50.9% 56.9% 87.1% $13.25 $12.75 $10.69
19.3% 28.0% 39.5% $31.06 $28.94 $26.56
20.2% 33.7% 42.6% $21.06 $18.94 $17.75
4.0% 6.1% 9.5% $12.50 $12.25 $11.88
13.5% 16.8% 20.0% $29.06 $28.25 $27.50
29.0% 29.0% 24.2% $19.50 $19.50 $20.25
60.3% 91.3% 52.6% $22.38 $18.75 $23.50
8.6% 1.7% (2.6%) $11.88 $12.69 $13.25
18.4% 17.6% 24.2% $17.56 $17.69 $16.75
33.7% 72.3% 75.9% $13.94 $10.81 $10.59
</TABLE>
Project Flathead U.S. Bancorp Piper Jaffray
40
<PAGE> 41
PREMIUMS PAID ANALYSIS
Completed Deals
1/1/1999 - 5/25/00
$500 Million<Company Value <$1 Billion
<TABLE>
<CAPTION>
Date Date Company
Announced Effective Target Name Target Business Description Acquiror Name Value
--------- --------------------- --------------------------- ------------- -----
<S> <C> <C> <C> <C> <C>
6/29/99 12/1/99 New England Cmnty Bancorp,CT Bank holding company Webster Finl Corp,Waterbury, $817
CT
6/24/99 12/1/99 Citation Corp Mnfr iron and steel Kelso & Co $629
products
5/10/99 11/30/99 Xoom.com Inc Pvd online information svcs NBC $826
11/29/99 11/29/99 Shorewood Packaging Corp Mnfr paperboard packaging Chesapeake Corp $745
prod
6/14/99 11/26/99 Abacus Direct Corp Pvd info to direct DoubleClick Inc $981
marketers
1/11/99 11/24/99 Pool Energy Services Co Pvd oil well services Nabors Industries Inc $505
8/23/99 11/23/99 Transaction Network Services Pvd network communication PSINet Inc $707
svcs
4/5/99 11/22/99 Sunstone Hotel Investors Inc Real estate investment Investor Group $774
trust
9/20/99 11/22/99 Furon Co Inc Mnfr highly engineered Cie de Saint-Gobain SA $637
prods
8/31/99 11/22/99 AFC Cable Systems Inc Mnfr electrical products Tyco International Ltd $613
7/9/99 11/19/99 Peoples Bank Corp,Indiana Commercial bank Fifth Third Bancorp $776
7/8/99 11/19/99 Perclose Inc Mnfr surgical,medical equip Abbott Laboratories $651
6/21/99 11/16/99 Metricom Inc Mnfr wireless commun MCI WorldCom $524
products
6/14/99 11/12/99 Maxxim Medical Inc Mnfr surgical instruments Investor Group $677
6/14/99 11/11/99 Superior Services Inc Pvd solid waste disposal Vivendi SA $1,001
svcs
8/27/99 11/5/99 Xomed Surgical Products Inc Mnfr surgical products Medtronic Inc $875
11/5/99 11/5/99 PEC Israel Economic Corp Investment firm Discount Investment $792
Corp(IDB)
8/3/99 11/4/99 American Health Properties Real estate investment Health Care Property $822
Inc trust Investors
6/7/99 11/4/99 Pennsylvania Enterprises Inc Gas and water utility hldg Southern Union Co $538
co
7/8/99 11/2/99 American Heritage Life Invt Insurance holding co Allstate Corp $954
8/10/99 11/2/99 International Integration Pvd computer programming Razorfish Inc $569
Inc svcs
3/11/99 11/1/99 Franchise Mortgage Specialty finance company Bay View Capital,San $691
Acceptance Mateo,CA
7/27/99 10/27/99 Standard Products Co Mnfr rubber, plastic auto Cooper Tire & Rubber Co $763
prod
7/12/99 10/26/99 NetGravity Inc Dvlp advertising mgmt DoubleClick Inc $502
software
6/28/99 10/25/99 Zenith National Insurance Insurance company Fairfax Financial Holdings $562
Corp Ltd
6/28/99 10/21/99 Marshall Industries Whl electronic components Avnet Inc $776
8/23/99 10/20/99 Forte Software Inc Develop computer software Sun Microsystems Inc $530
10/19/99 10/19/99 Lodgian Inc Own,op hotels Casuarina Cayman Holdings $984
Ltd
7/23/99 10/15/99 Unitrode Corp Manufacture semiconductors Texas Instruments Inc $751
4/16/99 10/7/99 Ocwen Asset Investment Corp Investment firm; REIT Ocwen Financial Corp $686
7/1/99 10/1/99 Lexford Residential Trust Real estate investment Equity Residential Pptys $721
trust Trust
7/19/99 10/1/99 Vistana Inc Own,op timeshare resorts Starlight Communications $655
5/19/99 10/1/99 Long Beach Financial Corp Mort bank Washington Mutual,Seattle,WA $561
5/14/99 10/1/99 Life USA Holding Inc Life insurance holding Allianz Life Ins Co(Allianz) $543
company
</TABLE>
<TABLE>
<CAPTION>
PRICE PRIOR
PREMIUM PAID TO ANNOUNCEMENT
------------ ----------------------------
Price Per
Share 1 Day 1 Week 1 Month 1 Day 1 Week 1 Month
----- ----- ------ ------- ----- ------ -------
<S> <C> <C> <C> <C> <C> <C>
$30.08 13.0% 19.4% 56.3% $26.63 $25.19 $19.25
$17.00 18.3% 14.3% 26.5% $14.38 $14.88 $13.44
$73.00 (2.8%) 6.5% (5.0%) $75.13 $68.56 $76.88
$17.25 22.1% 27.8% 32.1% $14.13 $13.50 $13.06
$93.25 25.1% 25.1% 16.9% $74.56 $74.56 $79.75
$16.46 39.3% 73.3% 105.8% $11.81 $9.50 $8.00
$45.28 32.2% 61.7% 56.5% $34.25 $28.00 $28.94
$10.38 41.9% 43.2% 40.7% $7.31 $7.25 $7.38
$25.50 56.3% 50.0% 60.0% $16.31 $17.00 $15.94
$44.25 24.6% 24.2% 13.8% $35.50 $35.63 $38.88
$73.00 78.0% 80.8% 89.6% $41.00 $40.38 $38.50
$54.00 12.5% 9.4% 22.7% $48.00 $49.38 $44.00
$10.00 (9.6%) (3.0%) 23.1% $11.06 $10.31 $8.13
$26.00 30.8% 38.2% 71.2% $19.88 $18.81 $15.19
$27.00 13.7% 25.6% 20.3% $23.75 $21.50 $22.44
$65.85 28.5% 38.1% 44.5% $51.25 $47.69 $45.56
$36.50 0.2% 1.0% 2.8% $36.44 $36.13 $35.50
$20.18 11.0% 9.5% (0.7%) $18.19 $18.44 $20.31
$35.00 17.9% 20.7% 35.3% $29.69 $29.00 $25.88
$32.25 21.1% 25.9% 40.2% $26.63 $25.63 $23.00
$24.72 16.3% 18.1% 17.7% $21.25 $20.94 $21.00
$11.23 35.1% 32.1% 72.8% $8.31 $8.50 $6.50
$36.50 46.0% 54.9% 35.8% $25.00 $23.56 $26.88
$26.32 (11.2%) 4.2% 54.3% $29.63 $25.25 $17.06
$28.00 12.8% 13.1% 23.1% $24.81 $24.75 $22.75
$35.19 74.9% 99.7% 99.7% $20.13 $17.63 $17.63
$22.28 31.1% 64.3% 61.3% $17.00 $13.56 $13.81
$4.25 (2.9%) 6.3% (1.4%) $4.38 $4.00 $4.31
$24.57 (7.7%) (18.8%) (15.3%) $26.63 $30.25 $29.00
$5.50 37.5% 39.7% 57.1% $4.00 $3.94 $3.50
$20.86 (12.6%) 3.3% 10.5% $23.88 $20.19 $18.88
$18.56 7.6% 14.2% 32.6% $17.25 $16.25 $14.00
$15.50 25.9% 24.0% 35.5% $12.31 $12.50 $11.44
$20.75 106.9% 97.6% 101.2% $10.03 $10.50 $10.31
</TABLE>
Project Flathead U.S. Bancorp Piper Jaffray
41
<PAGE> 42
PREMIUMS PAID ANALYSIS
Completed Deals
1/1/1999 - 5/25/00
$500 Million<Company Value <$1 Billion
<TABLE>
<CAPTION>
Date Date Company
Announced Effective Target Name Target Business Description Acquiror Name Value
--------- --------- ----------- --------------------------- ------------- -----
<S> <C> <C> <C> <C> <C>
7/12/99 9/24/99 Sequent Computer Systems Inc Manufacture computer IBM Corp $688
systems
6/2/99 9/23/99 Metro Networks Inc Provide communication Westwood One Inc $899
services
12/23/98 9/23/99 Ballard Medical Products Mnfr disposable medical Kimberly-Clark Corp $773
prod
5/11/99 9/3/99 Empire District Electric Co Electric utility UtiliCorp United Inc $795
7/26/99 9/2/99 Host Marriott Services Own,op concession stands Autogrill(Edizione Holding) $947
6/24/99 8/31/99 International Comfort Mnfr heating,refrig equip Carrier Corp(United Tech $732
Products Corp)
2/25/99 8/30/99 Matewan Bancshares Inc Bank holding company BB&T Corp,Winston-Salem,NC $684
6/24/99 8/30/99 Data Processing Resources Develop computer system CompuWare Corp $510
Corp
5/3/99 8/24/99 Cellular Commun of Puerto Pvd cellular commun svcs Investor Group $851
Rico
7/6/99 8/20/99 Scotsman Industries Inc Mnfr,whl refrigeration Berisford PLC $695
equip
4/19/99 8/19/99 Blount International Inc Manufacture saw blades Investor Group $884
4/1/99 8/15/99 Aqua Alliance Inc Pvd engineering services Vivendi SA $663
3/1/99 8/6/99 Emerald Financial Corp,OH Savings and loan Fifth Third Bancorp $773
7/26/99 8/3/99 Quantum Corp Mnfr info storage products Shareholders $703
2/1/99 8/2/99 Broad Natl Bancorp,Newark,NJ National commercial bank Independence Community Bank $659
5/6/99 8/2/99 Avondale Industries Inc Mnfr,repair Litton Industries Inc $523
ships,ferryboats
3/1/99 7/29/99 NeXstar Pharmaceuticals Inc Mnfr AIDS pharmaceuticals Gilead Sciences Inc $870
4/20/99 7/28/99 HealthCare Financial Pvd asset-based financing Heller Financial Inc $647
Partners svcs
3/22/99 7/27/99 Paymentech Inc(First USA) Pvd payment processing svcs First Data Corp $708
5/10/99 7/26/99 Penske Motorsports Inc Pvd racing promotion svcs International Speedway Corp $749
4/30/99 7/22/99 ABR Information Services Inc Pvd benefits admin services Ceridian Corp $703
2/18/99 7/19/99 Bank of Commerce,San Commercial bank US Bancorp,Minneapolis,MN $899
Diego,CA
1/28/99 7/15/99 Mason-Dixon Bancshares,MD Bank holding company BB&T Corp,Winston-Salem,NC $836
6/1/99 7/13/99 Dialogic Corp Mnfr computer telephony Intel Corp $688
equip
7/13/99 7/13/99 John H Harland Co Pvd commercial printing Investor Group $686
svcs
2/24/99 7/9/99 CFSB Bancorp Inc,Lansing,MI Bank holding company Old Kent Finl Corp,Michigan $820
2/3/99 7/7/99 St John Knits Inc Mnfr,whl women's clothing Investor Group $503
3/25/99 7/2/99 Norrell Corp Pvd personnel,business svcs Interim Services Inc $545
2/25/99 7/1/99 SierraWest Commercial bank;holding co BancWest Corp,San $929
Bancorp,Truckee,CA Francisco,CA
11/16/98 6/30/99 HF Bancorp Inc,Hemet,CA Bank holding co; savings Temple-Inland $956
bank Inc,Diboll,Texas
9/8/98 6/30/99 Peoples Bancorp Inc,New Bank holding company Sovereign Bancorp,PA $897
Jersey
5/5/99 6/24/99 Dames & Moore Group Pvd envi,engineering svcs URS Corp $598
4/29/99 6/17/99 CMP Media Inc Publish info tech magazines United News & Media PLC $990
4/28/99 6/17/99 Walbro Corp Mnfr fuel system components TI Group PLC $548
</TABLE>
<TABLE>
<CAPTION>
PRICE PRIOR
PREMIUM PAID TO ANNOUNCEMENT
------------ --------------------------------
Price Per
Share 1 Day 1 Week 1 Month 1 Day 1 Week 1 Month
----- ----- ------ ------- ----- ------ -------
<S> <C> <C> <C> <C> <C> <C>
$18.00 7.5% 32.1% 41.9% $16.75 $13.63 $12.69
$52.50 (5.4%) (7.9%) 4.9% $55.50 $57.00 $50.06
$25.00 (0.5%) 12.4% 13.0% $25.13 $22.25 $22.13
$29.50 38.8% 39.6% 36.0% $21.25 $21.13 $21.69
$15.75 61.5% 73.8% 101.6% $ 9.75 $ 9.06 $ 7.81
$11.75 9.3% 11.9% 33.3% $10.75 $10.50 $ 8.81
$26.13 (15.7%) (9.9%) (1.9%) $31.00 $29.00 $26.63
$24.00 95.9% 76.1% 42.8% $12.25 $13.63 $16.81
$29.50 24.2% 12.9% 7.3% $23.75 $26.13 $27.50
$33.00 1.1% 48.7% 57.6% $32.63 $22.19 $20.94
$30.00 8.4% 8.1% 11.6% $27.69 $27.75 $26.88
$ 2.90 28.9% 19.0% 101.7% $ 2.25 $ 2.44 $ 1.44
$19.80 36.6% 36.6% 52.3% $14.50 $14.50 $13.00
$ 6.75 (72.7%) (74.7%) (71.0%) $24.75 $26.69 $23.31
$26.50 18.1% 24.7% 33.3% $22.44 $21.25 $19.88
$39.50 47.0% 47.0% 38.6% $26.88 $26.88 $28.50
$24.18 75.1% 128.9% 169.6% $13.81 $10.56 $ 8.97
$35.00 22.8% 25.0% 39.3% $28.50 $28.00 $25.13
$25.50 2.3% 10.9% 29.1% $24.94 $23.00 $19.75
$50.00 29.0% 37.9% 37.0% $38.75 $36.25 $36.50
$25.50 48.4% 50.6% 54.5% $17.19 $16.94 $16.50
$19.13 15.9% 13.4% 15.1% $16.50 $16.88 $16.63
$48.34 74.2% 74.2% 65.3% $27.75 $27.75 $29.25
$44.00 31.8% 40.8% 53.7% $33.38 $31.25 $28.63
$20.25 0.0% (3.9%) 5.2% $20.25 $21.06 $19.25
$28.27 34.6% 33.0% 27.1% $21.00 $21.25 $22.25
$30.00 42.9% 44.1% 50.0% $21.00 $20.81 $20.00
$16.03 27.0% 19.9% 2.6% $12.63 $13.38 $15.63
$36.08 26.7% 45.0% 40.8% $28.47 $24.88 $25.63
$18.50 8.8% 10.4% 39.6% $17.00 $16.75 $13.25
$10.50 26.3% 44.8% 21.7% $ 8.31 $ 7.25 $ 8.63
$16.00 33.3% 33.3% 51.5% $12.00 $12.00 $10.56
$39.00 15.1% 27.9% 25.6% $33.88 $30.50 $31.06
$20.00 62.4% 102.5% 122.2% $12.31 $ 9.88 $ 9.00
</TABLE>
Project Flathead U.S. Bancorp Piper Jaffray
42
<PAGE> 43
PREMIUMS PAID ANALYSIS
Completed Deals
1/1/1999 - 5/25/00
$500 Million<Company Value <$1 Billion
<TABLE>
<CAPTION>
Date Date Company
Announced Effective Target Name Target Business Description Acquiror Name Value
--------- --------- ----------- --------------------------- ------------- -----
<S> <C> <C> <C> <C> <C>
12/14/98 6/15/99 Physician Reliance Network Pvd physician mgmt bus svcs American Oncology Resources $681
Inc
4/16/99 6/15/99 Trico Marine Svcs(Berkshire) Pvd oil field supply Inverness Management LLC $519
services
11/23/98 6/9/99 Amerin Corp Mortgage insurance company CMAC Investment Corp $591
4/27/99 6/9/99 Lawter International Inc Mnfr printing ink and Eastman Chemical Co $547
resins
12/10/98 6/1/99 FNB Rochester Corp,NY Bank holding company M&T Bank Corp,Buffalo,New York $618
12/9/98 5/24/99 Tower Realty Trust Inc Real estate investment Investor Group $630
trust
2/16/99 5/11/99 ASA Holdings Inc Passenger airline;holding Delta Air Lines Inc $940
co
2/16/99 5/7/99 American Media Inc Publish tabloid newspapers Evercore Capital Partners LP $646
1/13/99 5/5/99 Snyder Oil Corp Oil and gas exploration, Santa Fe Energy Resources $637
prodn
10/22/98 4/29/99 BA Merchant Pvd payment processing svcs Bank of America National Trust $949
Svcs(BankAmerica)
2/8/99 4/29/99 Building One Services Corp Pvd facilities maintenance Building One Services Corp $743
svc
3/24/98 4/27/99 Investment Technology Group Pvd equity trading svcs Shareholders $672
12/2/98 4/23/99 Brylane Inc Own,op mail-order house Pinault-Printemps Redoute $804
11/20/98 4/2/99 Eagle Hardware & Garden Inc Own,op home improvement Lowe's Companies Inc $958
ctrs
11/2/98 3/30/99 Boole & Babbage Inc Computer programming BMC Software Inc $966
services
10/28/98 3/29/99 First Coastal Bankshares Inc Commercial bank Centura Banks Inc,NC $512
1/11/99 3/24/99 Unitog Co Mnfr, whl and supply Cintas Corp $614
uniforms
11/12/98 3/22/99 Hills Stores Co Own,op dept stores,shoe Ames Department Stores Inc $646
stores
7/20/98 3/22/99 Bayonne Bancshares,New Savings bank Richmond County Financial,NY $595
Jersey
2/24/99 3/17/99 Capital Re Corp Reinsurance co;holding co ACE Ltd $617
10/5/98 3/17/99 SEQUUS Pharmaceuticals Inc Develop drug delivery ALZA Corp $582
systems
10/16/98 3/16/99 Greyhound Lines Inc Pvd inter city bus transp Laidlaw Inc $739
svcs
12/18/98 3/1/99 Kuhlman Corp Mnfr transformers,indl Borg-Warner Automotive Inc $793
springs
11/6/98 3/1/99 MiniMed Inc Mnfr,whl infusion systems Medtronic Inc $788
8/19/98 2/26/99 GA Financial Commercial bank;holding co GA Financial Inc,Pittsburgh,PA $559
Inc,Pittsburgh,PA
9/23/98 2/25/99 Ryerson Tull Inc Wholesale steel Inland Steel Industries Inc $511
12/7/98 2/11/99 Interlake Corp Mnfr,whl storage GKN PLC $568
racks,metals
2/11/99 2/10/99 John H Harland Co Pvd commercial printing Investor Group $522
svcs
8/5/98 2/5/99 Storage Trust Realty Real estate investment Public Storage Inc $527
trust
11/23/98 2/2/99 Carmike Cinemas Inc Own,operate movie theaters GS Capital Partners III $750
8/6/98 1/19/99 Equity Corp International Pvd deathcare services Service Corp International $982
11/16/98 1/6/99 CalMat Co Mnfr,whl aggregates, concrete Vulcan Materials Co $887
8/10/98 1/4/99 Rio Hotel & Casino Inc Own,operate casino hotel Harrah's Entertainment Inc $805
8/3/98 1/4/99 Priority Healthcare Corp Whl pharmaceuticals Shareholders $533
</TABLE>
<TABLE>
<CAPTION>
PREMIUM PAID PRICE PRIOR TO ANNOUNCEMENT
--------------------------------- --------------------------------
Price Per
Share 1 Day 1 Week 1 Month 1 Day 1 Week 1 Month
----- ----- ------ ------- ----- ------ -------
<S> <C> <C> <C> <C> <C> <C>
$12.00 4.3% 15.7% 21.9% $11.50 $10.38 $ 9.84
$ 6.25 19.8% 33.3% 22.0% $ 5.22 $ 4.69 $ 5.13
$23.43 12.2% 10.9% 17.9% $20.88 $21.13 $19.88
$12.25 38.0% 62.0% 76.6% $ 8.88 $ 7.56 $ 6.94
$33.00 6.0% 55.3% 85.9% $31.13 $21.25 $17.75
$20.37 9.4% 9.7% 16.4% $18.63 $18.56 $17.50
$34.00 6.5% 10.6% 4.2% $31.94 $30.75 $32.63
$ 7.00 13.1% 21.7% 36.6% $ 6.19 $ 5.75 $ 5.13
$13.58 2.5% (8.7%) 9.2% $13.25 $14.88 $12.44
$20.50 47.1% 56.2% 42.0% $13.94 $13.13 $14.44
$22.50 11.8% 12.3% 10.1% $20.13 $20.03 $20.44
$40.31 13.5% 16.0% 45.3% $35.50 $34.75 $27.75
$24.50 45.2% 88.5% 44.1% $16.88 $13.00 $17.00
$29.00 10.5% 18.4% 26.1% $26.25 $24.50 $23.00
$32.44 21.8% 22.4% 62.2% $26.63 $26.50 $20.00
$23.80 27.8% 56.1% 68.5% $18.63 $15.25 $14.13
$52.62 76.9% 83.0% 93.1% $29.75 $28.75 $27.25
$ 1.50 14.3% 9.1% (11.1%) $ 1.31 $ 1.38 $ 1.69
$19.03 11.1% 16.7% 18.9% $17.13 $16.31 $16.00
$16.95 14.4% 41.3% (8.1%) $14.81 $12.00 $18.44
$16.98 56.1% 81.1% 186.0% $10.88 $ 9.38 $ 5.94
$ 6.50 36.8% 79.3% 42.5% $ 4.75 $ 3.63 $ 4.56
$39.00 23.8% 43.1% 38.4% $31.50 $27.25 $28.19
$60.00 (1.6%) 8.1% (1.8%) $61.00 $55.50 $61.13
$15.63 0.0% 2.5% (14.4%) $15.63 $15.25 $18.25
$11.44 (8.5%) (11.6%) (40.8%) $12.50 $12.94 $19.31
$ 7.25 107.1% 110.9% 100.0% $ 3.50 $ 3.44 $ 3.63
$14.13 5.6% 7.1% 1.4% $13.38 $13.19 $13.94
$21.50 (9.5%) (3.4%) (12.9%) $23.75 $22.25 $24.69
$25.00 18.7% 24.6% 26.6% $21.06 $20.06 $19.75
$27.00 22.0% 30.1% 18.0% $22.13 $20.75 $22.88
$31.00 14.0% 16.7% 33.0% $27.19 $26.56 $23.31
$20.13 6.6% 14.6% 13.8% $18.88 $17.56 $17.69
$42.88 99.4% 101.8% 127.2% $21.50 $21.25 $18.88
</TABLE>
<TABLE>
<S> <C> <C> <C>
Minimum (72.7%) (74.7%) (71.0%)
Mean 26.7% 35.4% 42.0%
Median 22.1% 28.8% 37.7%
Maximum 149.0% 187.7% 186.0%
</TABLE>
Project Flathead U.S. Bancorp Piper Jaffray
43
<PAGE> 44
FLATHEAD DUE DILIGENCE PROCEDURES
In the course of performing its due diligence in connection with the rendering
of its fairness opinion, U.S. Bancorp Piper Jaffray has, among other things,
undertaken the following steps with respect to Flathead:
1) Performed business and financial due diligence with certain members of
senior management of Flathead concerning topics such as Flathead's
financial condition, operating performance and balance sheet, as well
as the prospects for Flathead.
2) Conducted discussions with members of the Board of Directors for
Flathead.
3) Made on-site visits to Flathead headquarters, including visits with Roe
Hatlen, Flathead Chairman; Kerry Kramp, Flathead CEO; Michael Andrews,
Flathead CFO; David Goronkin, EVP; Glenn Drasher, EVP and other
Flathead employees.
4) Participated in numerous telephonic meetings with members of Flathead
executive management to discuss the status of the proposed transaction.
5) Reviewed certain publicly available business and financial information
relating to Flathead, including the reports on Form 10-K for the years
ended December 31, 1997, December 30, 1998 and December 29, 1999, and
the reports on Form 10-Q for the quarters ended April 21, 1999, July
14, 1999, October 6, 1999, and June 19, 2000 and proxy statements for
the periods ended May 9, 2000 and May 11, 1999 as well as recent
published research analyst reports and press releases.
6) Reviewed the Company's unaudited financial results for the years ended
December 31, 1997, December 30, 1998 and December 29, 1999 and certain
unaudited financial and operating data for the quarter ended April 19,
2000.
7) Reviewed 5-year financial forecasts for Flathead on a stand-alone
public company basis furnished to U.S. Bancorp Piper Jaffray by
Flathead management for the years ended 2000-2004.
8) Reviewed the latest draft of the Agreement and Plan of Merger.
Project Flathead U.S. Bancorp Piper Jaffray
44
<PAGE> 45
FLATHEAD DUE DILIGENCE PROCEDURES
9) Reviewed the results of store level operations.
10) Reviewed information regarding the Company's owned/leased properties.
11) Reviewed the historical prices and trading activity for Flathead Common
Stock.
12) Compared certain public financial data of Flathead with certain
financial and securities data of companies deemed similar to Flathead.
13) Reviewed the financial terms, to the extent publicly available, of
certain comparable merger and acquisition transactions which we deemed
relevant.
14) Performed discounted cash flow analysis on the financial forecast for
Flathead furnished to us by Flathead management.
15) Compared premiums paid relative to recent public market
pre-announcement trading prices to Flathead implied premium.
16) Reviewed such other financial studies and analyses and took into
account such other matters as we deemed necessary, including our
assessment of general economic, market and monetary conditions.
Project Flathead U.S. Bancorp Piper Jaffray
45
<PAGE> 46
PRESENTATION TO THE
SPECIAL COMMITTEE OF THE BOARD OF DIRECTORS
PROJECT FLATHEAD
[U.S. Bancorp Piper Jaffray LOGO]
June 4, 2000
<PAGE> 47
TABLE OF CONTENTS
<TABLE>
<CAPTION>
Section
-------
<S> <C>
Background & Process Overview 1
Transaction Summary 2
Current Flathead Market and Financial Data 3
Valuation Analyses 4
- Summary
- Comparable Company Analysis
- Comparable Transaction Analysis
- Discounted Cash Flow Analysis
- Premiums Paid Analysis
Appendix
--------
Summary of Due Diligence Procedures A
</TABLE>
