<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
SCHEDULE 13E-3/A
(AMENDMENT NO. 1)
RULE 13E-3 TRANSACTION STATEMENT
(PURSUANT TO SECTION 13(E) OF THE SECURITIES EXCHANGE ACT OF 1934)
CONSO INTERNATIONAL CORPORATION
- -------------------------------------------------------------------------------
(Name of the Issuer)
CONSO INTERNATIONAL CORPORATION
CIC ACQUISITION CO.
CIC ACQUISITION SUB, INC.
J. CARY FINDLAY
- -------------------------------------------------------------------------------
(Name of Persons Filing Statement)
COMMON STOCK
- -------------------------------------------------------------------------------
(Title of Class of Securities)
20854R 10 5
- -------------------------------------------------------------------------------
(CUSIP Number of Class of Securities)
J. Cary Findlay
Conso International Corporation
513 North Duncan Bypass
Union, South Carolina 29379
Telephone 864/427-9004
Copies to:
J. Norfleet Pruden, III Geoffrey W. Levin
Kennedy Covington Lobdell & Hickman, LLP Kirkland & Ellis
Bank of America Corporate Center, Suite 4200 Citicorp Center
100 North Tryon Street 153 East 53rd Street
Charlotte, North Carolina 28202-4006 New York, New York 10022-4675
Telephone 704/331-7442 Telephone 212/446-4904
- -------------------------------------------------------------------------------
(Name, Address and Telephone Number of Person Authorized to Receive Notices and
Communications On Behalf Of Persons Filing Statement)
This statement is filed in connection with (check the appropriate box):
a. [x] The filing of solicitation materials or an information statement
subject to Regulation 14A, Regulation 14C, or Rule 13e-3(c) under the
Securities Exchange Act of 1934.
b. [ ] The filing of a registration statement under the Securities Act of
1933.
c. [ ] A tender offer.
d. [ ] None of the above.
Check the following box if the soliciting materials or information statement
referred to in checking box (a) are preliminary copies: [ ]
Calculation Of Filing Fee
Transaction Valuation(1) Amount Of Filing Fee
------------------------ --------------------
$66,928,500 $13,385.70
[x] Check box if any part of the fee is offset as provided by Rule
0-11(a)(2) and identify the filing with which the offsetting fee was
previously paid. Identify the previous filing by registration statement
number, or the form or schedule and the date of its filing.
Amount previously paid: $13,385.70
Filing party: Conso International Corporation
Form or registration no.: Schedule 14A - Preliminary Proxy Statement
Date filed: October 20, 1999
(1) Pursuant to Exchange Act Rule 0-11(b), 7,436,500 shares of Common
Stock of the Issuer are valued at $9.00 per share, based upon cash
merger consideration per share.
<PAGE> 2
INTRODUCTORY NOTE
This Amendment No. 1 to the Rule 13e-3 Transaction Statement on
Schedule 13E-3 (the "Schedule 13E-3") relates to the proposed merger (the
"Merger") of CIC Acquisition Sub, Inc., a South Carolina corporation
("Acquisition Sub"), with and into Conso International Corporation, a South
Carolina corporation (the "Company"), pursuant to the Merger Agreement dated as
of October 5, 1999, by and among the Company, Acquisition Sub and CIC
Acquisition Co., a Delaware corporation ("Parent"), and the related Plan of
Merger. In the Merger, certain shares of the Company's Common Stock held by J.
Cary Findlay, the Company's Chairman of the Board, President and Chief
Executive Officer, will be converted into stock of the surviving corporation.
The cross reference sheet below is being supplied pursuant to General
Instruction F to Schedule 13E-3 and shows the location in the Definitive Proxy
Statement (the "Proxy Statement"), filed by the Corporation with the Securities
and Exchange Commission on the date hereof of the information required to be
included in response to the items of Schedule 13E-3. The information set forth
in the Proxy Statement (including the appendixes thereto) is hereby expressly
incorporated herein by reference and the responses to each item are qualified
in their entirety by the information contained in the Proxy Statement.
<PAGE> 3
CROSS REFERENCE SHEET
<TABLE>
<CAPTION>
Item in Schedule 13E-3 Caption or Location in Proxy Statement
- ---------------------- --------------------------------------
<S> <C>
Item 1(a) Outside Front Cover Page; "Summary - The
Parties to the Transaction"; "The Special
Meeting - General"; "Certain Information
Concerning the Transaction Participants -
Conso"
Item 1(b) "Summary -- The Special Meeting"; "The
Special Meeting - Record Date and Voting"
Items 1(c), (d) and (f) "Comparative Market Price Data and
Dividends"
Item 1(e) Not applicable
Items 2(a) - (d) and (g) "Summary - The Parties to the Transaction";
"Certain Information Concerning the
Transaction Participants"
Items 2(e) and (f) Neither J. Cary Findlay nor any of the
directors or executive officers of the
Company, Acquisition Sub or Parent (a) was,
during the last five years, convicted in a
criminal proceeding (excluding traffic
violations and similar proceedings) or (b)
was a party to a civil proceeding of a
judicial or administrative body of
competent jurisdiction and as a result of
such proceeding was or is subject to a
judgment, decree or final order enjoining
further violations of, or prohibiting
activities subject to, federal or state
securities laws or finding any violation of
such laws.
Items 3(a) and (b) "Summary - The Merger Agreement";
"Comparative Market Price Data and
Dividends"; "Special Factors - Background
of the Merger"; "Special Factors -
Interests of Certain Persons in the
Merger"; "The Merger Agreement"; "Financing
of the Merger
</TABLE>
3
<PAGE> 4
<TABLE>
<S> <C>
Item 4(a) "Summary"; "Special Factors"; "The Special
Meeting"; "The Merger"; "The Merger
Agreement"; Appendix A.
Item 4(b) "Summary - The Parties to the Transaction";
"Summary - The Merger"; "Summary - Certain
Effects of the Merger"; "Summary -
Interests of Certain Persons in the
Merger"; "Summary - The Merger Agreement";
"Summary - Financing of the Merger";
"Special Factors -- Certain Effects of the
Merger"; "Special Factors - Background of
the Merger"; "Special Factors - Interests
of Certain Persons in the Merger"; "The
Merger - Effects of the Merger"; "The
Merger - Plans or Proposals After the
Merger"; "The Merger Agreement -
Consideration to Be Received by
Shareholders"; "Financing of the Merger -
General"; "Financing of the Merger - Equity
Investments"
Items 5(a) - (g) "Summary - Certain Effects of the Merger";
"Special Factors - Certain Effects of the
Merger"; "Special Factors - Interests of
Certain Persons in the Merger"; "The Merger
- Effects of the Merger"; "The Merger -
Plans or Proposals After the Merger";
"Financing of the Merger - Equity
Investment"; "Certain Information
Concerning The Transaction Participants -
Directors and Executive Officers of Conso";
"Certain Information Concerning The
Transaction Participants - Parent and
Acquisition Sub"
Item 6(a) "Summary - Interests of Certain Persons in
the Merger"; "Summary - Financing of the
Merger"; "Special Factors - Interests of
Certain Persons in the Merger"; "Financing
of the Merger"
Item 6(b) "The Merger Agreement - Termination Fees;
Expenses"
</TABLE>
4
<PAGE> 5
<TABLE>
<S> <C>
Item 6(c) "Financing of the Merger - Senior Credit
Facility"
Item 6(d) Not Applicable
Items 7(a) - (d) "Summary - Certain Effects of the Merger";
"Summary - Interests of Certain Persons in
the Merger"; "Summary - U.S. Federal Income
Tax Consequences"; "Special Factors -
Background of the Merger"; "Special Factors
- Conso's Reasons for the Merger;
Recommendation of the Board of Directors";
"Special Factors - Certain Effects of the
Merger"; "Special Factors - Interests of
Certain Persons in the Merger"; "Special
Factors - U.S. Federal Income Tax
Consequences of the Merger to
Shareholders"; "Special Factors - Effect of
the Merger on Conso Stock Options"
Items 8(a) - (f) "Summary - Quorum and Vote Required";
"Special Factors - Background of the
Merger"; "Special Factors - Opinion of
Financial Advisor"; "Special Factors -
Conso's Reasons for the Merger;
Recommendation of the Board of Directors";
"Special Factors - Conso's and J. Cary
Findlay's Belief as to the Fairness of the
Merger"; "Special Factors - Parent's and
Acquisition Sub's Belief as to the Fairness
of the Merger"; "The Special Meeting -
Record Date and Voting"
Items 9(a) - (c) "Special Factors - Background of the
Merger"; "Special Factors - Opinion of
Financial Advisors"; Appendix C
Item 10(a) "Security Ownership of Certain Beneficial
Owners and Management"
Item 10(b) "Comparative Market Price Data and Dividends"
Item 11 "Summary - Interests of Certain Persons in
the Merger"; "Special Factors - Interests
of Certain Persons in the Merger"; "The
</TABLE>
5
<PAGE> 6
<TABLE>
<S> <C>
Special Meeting - Record Date and Voting";
"The Merger Agreement"; Appendix A
Items 12(a) and (b) "Summary - Voting of Shares of Certain
Holders"; "Special Factors - Conso's
Reasons for the Merger; Recommendation of
the Board of Directors"; "Special Factors -
Interests of Certain Persons in the
Merger"; "The Special Meeting - Record Date
and Voting"
Items 13(a) and (b) "Summary - Dissenter's Rights"; "The
Merger - Dissenter's Rights"; Appendix B
Item 13(c) Not Applicable
Items 14 (a) "Selected Historical Consolidated Financial
Data"
Item 14 (b) Not Applicable
Item 15(a) "Summary"; "Special Factors - Background of
the Merger"; "Special Factors - Opinion of
Financial Advisor"; "Special Factors -
Interests of Certain Persons in the
Merger"; "The Special Meeting -
Solicitation of Proxies"
Item 15(b) Not Applicable
Item 16 Proxy Statement (and Appendixes thereto)
generally
Item 17(e) Appendix B
</TABLE>
6
<PAGE> 7
ITEM 1. ISSUER AND CLASS OF SECURITY SUBJECT TO THE TRANSACTION.
(a) Reference hereby is made to the information set forth on the cover
page and the headings "Summary - The Parties to the Transaction", "The
Special Meeting - General" and "Certain Information Concerning the
Transaction Participants - Conso" of the Proxy Statement, which
information is incorporated herein by reference.
(b) Reference hereby is made to the information set forth under the
headings "Summary - The Special Meeting" and "The Special Meeting -
Record Date and Voting" in the Proxy Statement, which information is
incorporated herein by reference.
(c) Reference hereby is made to the information set forth under the
heading "Comparative Market Price Data and Dividends" in the Proxy
Statement, which information is incorporated herein by reference.
(d) Reference hereby is made to the information set forth under the
heading "Comparative Market Price Data and Dividends" in the Proxy
Statement, which information is incorporated herein by reference.
(e) Not applicable.
(f) Reference hereby is made to the information set forth under the
heading "Comparative Market Price Data and Dividends" in the Proxy
Statement, which information is incorporated herein by reference.
ITEM 2. IDENTITY AND BACKGROUND.
(a)-(d) and (g) Reference hereby is made to the information set forth
under the headings "Summary - The Parties to the Transaction" and
"Certain Information Concerning the Transaction Participants" in the
Proxy Statement, which information is incorporated herein by
reference.
(e)-(f) Neither J. Cary Findlay nor any of the directors or executive officers
of the Company, Acquisition Sub or Parent (a) was, during the last
five years, convicted in a criminal proceeding (excluding traffic
violations and similar proceedings) or (b) was a party to a civil
proceeding of a judicial or administrative body of competent
jurisdiction and as a result of such proceeding was or is subject to a
judgment, decree or final order enjoining further violations of, or
prohibiting activities subject to, federal or state securities laws or
finding any violation of such laws.
7
<PAGE> 8
ITEM 3. PAST CONTACTS, TRANSACTIONS OR NEGOTIATIONS.
(a) Reference hereby is made to the information set forth under the
headings "Summary - The Merger Agreement," "Comparative Market Price
Data and Dividends," "Special Factors - Background of the Merger,"
"Special Factors - Interests of Certain Persons in the Merger," "The
Merger Agreement" and "Financing of the Merger" in the Proxy
Statement, which information is incorporated herein by reference.
(b) Reference hereby is made to the information set forth under the
headings "Summary - The Merger Agreement," "Comparative Market Price
Data and Dividends," "Special Factors - Background of the Merger,"
"Special Factors - Interests of Certain Persons in the Merger," "The
Merger Agreement" and "Financing of the Merger" in the Proxy
Statement, which information is incorporated herein by reference.
ITEM 4. TERMS OF THE TRANSACTION.
(a) Reference hereby is made to the information set forth under the
headings "Summary," "Special Factors,", "The Special Meeting," "The
Merger," "The Merger Agreement" and Appendix A in the Proxy Statement,
which information is incorporated herein by reference.
(b) Reference hereby is made to the information set forth under the
headings "Summary - The Parties to the Transaction," "Summary - The
Merger," "Summary - Certain Effects of the Merger," "Summary -
Interests of Certain Persons in the Merger," "Summary - The Merger
Agreement," "Summary - Financing of the Merger," "Special Factors -
Background of the Merger," "Special Factors - Certain Effects of the
Merger," "Special Factors - Interests of Certain Persons in the
Merger," "The Merger - Effects of the Merger," "The Merger - Plans or
Proposals After the Merger," "The Merger Agreement - Consideration to
Be Received by Shareholders," "Financing of the Merger - General" and
"Financing of the Merger - Equity Investments" in the Proxy Statement,
which information is incorporated herein by reference.
ITEM 5. PLANS OR PROPOSALS OF THE ISSUER OR AFFILIATE.
(a)-(g) Reference hereby is made to the information set forth under the
headings "Summary - Certain Effects of the Merger," "Special Factors -
Certain Effects of the Merger," "Special Factors - Interests of
Certain Persons in the Merger," "The Merger - Effects of the Merger"
"The Merger - Plans or Proposals After the Merger," "Financing of the
Merger - Equity Investment," "Certain Information Concerning The
Transaction Participants - Directors and Executive Officers of Conso,"
and "Certain Information Concerning The Transaction Participants -
8
<PAGE> 9
Parent and Acquisition Sub" in the Proxy Statement, which information
is incorporated herein by reference.
ITEM 6. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
(a) Reference hereby is made to the information set forth under the
headings "Summary - Interests of Certain Persons in the Merger,"
"Summary - Financing of the Merger," "Special Factors - Interests of
Certain Persons in the Merger" and "Financing of the Merger" in the
Proxy Statement, which information is incorporated herein by
reference.
(b) Reference hereby is made to the information set forth under the
heading "The Merger Agreement - Termination Fees; Expenses" in the
Proxy Statement, which information is incorporated herein by
reference.
(c) Reference hereby is made to the information set forth under the
heading "Financing of the Merger - Senior Credit Facility" in the
Proxy Statement, which information is incorporated herein by
reference.
(d) Not applicable.
ITEM 7. PURPOSE(S), ALTERNATIVES, REASONS AND EFFECTS.
(a)-(d) Reference hereby is made to the information set forth under the
headings "Summary - Certain Effects of the Merger," "Summary -
Interests of Certain Persons in the Merger," "Summary - U.S. Federal
Income Tax Consequences," "Special Factors - Background of the Merger,"
"Special Factors - Conso's Reasons for the Merger; Recommendation of
the Board of Directors," "Special Factors - Certain Effects of the
Merger," "Special Factors - Interests of Certain Persons in the Merger"
and "Special Factors - U.S. Federal Income Tax Consequences of the
Merger to Shareholders," "Special Factors - Effect of the Merger on
Conso Stock Options" in the Proxy Statement, which information is
incorporated herein by reference.
ITEM 8. FAIRNESS OF THE TRANSACTION.
(a)-(f) Reference hereby is made to the information under the headings
"Summary - Quorum and Vote Required," "Special Factors - Background of
the Merger," "Special Factors - Opinion of Financial Advisor,"
"Special Factors - Conso's Reasons for the Merger; Recommendation of
the Board of Directors," "Special Factors - Conso's and J. Cary
Findlay's Belief as to the Fairness of the Merger," "Special Factors -
Parent's and Acquisition Sub's Belief as to the Fairness of the
9
<PAGE> 10
Merger" and "The Special Meeting - Record Date and Voting" in the Proxy
Statement, which information is incorporated herein by reference.
ITEM 9. REPORTS, OPINIONS, APPRAISALS AND CERTAIN NEGOTIATIONS.
(a)-(c) Reference hereby is made to the information under the headings
"Special Factors - Background of the Merger," "Special Factors -
Opinion of Financial Advisor" and in Appendix C in the Proxy
Statement, which information is incorporated herein by reference.
ITEM 10. INTEREST IN SECURITIES OF THE ISSUER.
(a) Reference hereby is made to the information under the heading
"Security Ownership of Certain Beneficial Owners and Management" in
the Proxy Statement, which information is incorporated herein by
reference.
(b) Reference hereby is made to the information under the heading
"Comparative Market Price Data and Dividends" in the Proxy Statement,
which information is incorporated herein by reference.
ITEM 11. CONTRACTS, ARRANGEMENTS OR UNDERSTANDINGS WITH RESPECT TO THE ISSUER'S
SECURITIES.
Reference hereby is made to the information under the headings
"Summary - Interests of Certain Persons in the Merger," "Special
Factors - Interests of Certain Persons in the Merger," "The Special
Meeting - Record Date and Voting," "The Merger Agreement" and the
information in Appendix A in the Proxy Statement, which information is
incorporated herein by reference.
ITEM 12. PRESENT INTENTION AND RECOMMENDATION OF CERTAIN PERSONS WITH REGARD TO
THE TRANSACTION.
(a)-(b) Reference hereby is made to the information under the headings
"Summary - Voting of Shares of Certain Holders," "Special Factors -
Conso's Reasons for the Merger; Recommendation of the Board of
Directors," "Special Factors - Interests of Certain Persons in the
Merger" and "The Special Meeting - Record Date and Voting," of the
Proxy Statement, which information is incorporated herein by
reference.
10
<PAGE> 11
ITEM 13. OTHER PROVISIONS OF THE TRANSACTION.
(a)-(b) Reference hereby is made to the information under the headings
"Summary - Dissenter's Rights," "The Merger - Dissenter's Rights" and
in Appendix B in the Proxy Statement, which information is
incorporated herein by reference.
(c) Not applicable.
ITEM 14. FINANCIAL INFORMATION.
(a) Reference hereby is made to the information under the heading
"Selected Historical Consolidated Financial Data" in the Proxy
Statement, which information is incorporated herein by reference.
(b) Not applicable.
ITEM 15. PERSONS AND ASSETS EMPLOYED, RETAINED OR UTILIZED.
(a) The Issuer is engaged in the Rule 13e-3 transaction. As such, its
officers and employees are being used in connection with the Rule
13e-3 transaction. Reference hereby is made to the information under
the headings "Summary," "Special Factors Background of the Merger,"
"Special Factors - Opinion of Financial Advisor" and "Special Factors
- Interests of Certain Persons in the Merger" in the Proxy Statement,
which information is incorporated herein by reference.
(b) Not applicable.
ITEM 16. ADDITIONAL INFORMATION.
Reference hereby is made to the Proxy Statement, the Appendixes
thereto and the exhibits hereto, which contain additional information
regarding the Merger, which information is incorporated herein by
reference.
ITEM 17. MATERIAL TO BE FILED AS EXHIBITS.
(a) Commitment Letter, dated October 1, 1999, by and among Suntrust
Equitable Securities Corporation, Suntrust Bank, Atlanta, Suntrust
Banks, Inc., Citicorp Venture Capital Limited and CIC Acquisition Co.*
(b) (1) Opinion of The Robinson-Humphrey Company, LLC (Attached as
Appendix C to the Proxy Statement and incorporated herein by
reference)
11
<PAGE> 12
(2) The Robinson-Humphrey Company, LLC Presentation to the Special
Committee of the Board of Directors of the Company on October 5, 1999
(filed herewith)
(c) (1) Merger Agreement, dated as of October 5, 1999, by and among
Parent, Acquisition Sub, and the Company (Attached as Appendix A to
the Proxy Statement and incorporated herein by reference)
(2) Support Agreement, dated as of October 5, 1999, between CIC
Acquisition Sub, Inc. and J. Cary Findlay*
(3) Confidentiality Agreement dated May 5, 1999 referred to in
Section 4.3 of the Merger Agreement*
(d) Definitive Proxy Statement (filed by the Company on the date hereof
and incorporated herein by reference)
(e) Chapter 13 of the South Carolina Business Corporation Act (Attached as
Appendix B to the Proxy Statement and incorporated herein by
reference)
(f) Not applicable.
- ---------------------
* Previously filed.
12
<PAGE> 13
SIGNATURES
After due inquiry and to the best of my knowledge and belief, the
undersigned certifies that the information set forth in this statement is true,
complete and correct.
Date: December 8, 1999
CONSO INTERNATIONAL CORPORATION
By /s/ J. Cary Findlay
-----------------------------------------
Name: J. Cary Findlay
Title: Chairman, President and Chief
Executive Officer
CIC ACQUISITION CO.
By /s/ Michael Bradley
-----------------------------------------
Name: Michael Bradley
Title: Vice President
CIC ACQUISITION SUB, INC.
By /s/ Michael Bradley
-----------------------------------------
Name: Michael Bradley
Title: Vice President
/s/ J. Cary Findlay
-------------------------------------------
J. Cary Findlay
13
<PAGE> 14
EXHIBIT INDEX
<TABLE>
<CAPTION>
EXHIBIT
NUMBER DESCRIPTION
<S> <C>
(a) Commitment Letter, dated October 1, 1999, by and among Suntrust
Equitable Securities Corporation, Suntrust Bank, Atlanta, Suntrust
Banks, Inc., Citicorp Venture Capital Limited and CIC Acquisition Co.*
(b)(1) Opinion of The Robinson-Humphrey Company, LLC (Attached as Appendix C
to the Proxy Statement and incorporated herein by reference)
(b)(2) The Robinson-Humphrey Company, LLC Presentation to the Special
Committee of the Board of Directors of the Company on October 5, 1999
(filed herewith)
(c)(1) Merger Agreement, dated as of October 5, 1999, among Parent,
Acquisition Sub, and the Company (Attached as Appendix A to the Proxy
Statement and incorporated herein by reference)
(c)(2) Support Agreement, dated as of October 5, 1999, between CIC
Acquisition Sub, Inc. and J. Cary Findlay*
(c)(3) Confidentiality Agreement dated May 5, 1999 referred to in Section 4.3
of the Merger Agreement*
(d) Definitive Proxy Statement (filed by the Company on the date hereof
and incorporated herein by reference)
(e) Chapter 13 of the South Carolina Business Corporation Act (Attached as
Appendix B to the Proxy Statement and incorporated herein by
reference)
(f) Not applicable.
</TABLE>
- ----------------------
* Previously filed.
14
<PAGE> 1
Exhibit (b)(2)
Confidential
Investment Banking Presentation
to the Special Committee of the Board of Directors and
the Board of Directors
of
PALMETTO
October 5, 1999
THE ROBINSON-HUMPHREY COMPANY, LLC
Investment Bankers Since 1894
<PAGE> 2
- --------------------------------------------------------------------------
TABLE OF CONTENTS
- --------------------------------------------------------------------------
I. SUMMARY OF PROPOSED TRANSACTION
II. PALMETTO HISTORICAL AND PROJECTED FINANCIAL INFORMATION
III. VALUATION SUMMARY
IV. STOCK PERFORMANCE AND OWNERSHIP ANALYSIS FOR PALMETTO
A. Selected Price and Volume Statistics
B. Ownership Analysis
C. Analysis of Institutional Ownership Changes
V. VALUATION ANALYSES FOR PALMETTO
A. Market Comparison of Selected Public Companies
B. Public Company Implied Valuation
C. Analysis of Selected Mergers and Acquisitions
D. Mergers and Acquisitions Implied Valuation
E. Acquisition Premiums Analysis and Implied Valuation
F. MergerStat Review Premiums Implied Valuation
G. Discounted Cash Flow Analysis
H. Leveraged Buyout Analysis
- --------------------------------------------------------------------------------
Robinson-Humphrey
<PAGE> 3
- --------------------------------------------------------------------------------
SUMMARY OF PROPOSED TRANSACTION
- --------------------------------------------------------------------------------
OVERVIEW
- Citicorp Venture Capital, Ltd. proposes to acquire all of the issued and
outstanding shares of Common Stock of Palmetto at a price of $9.00 per
share in an all-cash transaction. This offer represents a 76% premium to
Palmetto's closing share price of $5.13 on September 29, 1999. The equity
value of this transaction totals approximately $66 million. The total
transaction is valued at approximately $107 million, including $40.6
million of net debt assumed.
- Under the proposed transaction, Palmetto's Chairman of the Board, President
and Chief Executive Officer, J. Cary Findlay, who currently owns
approximately 42% of the Company's outstanding shares, will reinvest a
total of $4.8 million in common and preferred equity capital of the
post-transaction entity on the same terms as Citicorp.
- The following page summarizes key multiples and other statistics related
to the proposed transaction.
- Section III of this presentation provides a summary of the implied values
for Palmetto based upon a range of valuation techniques, including market
comparison of selected public companies, analysis of selected mergers and
acquisitions, acquisition premiums analysis and discounted cash flow
analysis. Detailed valuation analyses are found in Section V.
- --------------------------------------------------------------------------------
Robinson-Humphrey
<PAGE> 4
Robinson-Humphrey
PROJECT PALMETTO
ANALYSIS OF PROPOSED TRANSACTION
- --------------------------------------------------------------------------------
($ IN THOUSANDS)
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------
PURCHASE CURRENT NET VALUE OF TRANSACTION PALMETTO TOTAL
PRICE PER SHARES EQUITY IN-THE-MONEY EQUITY NET TRANSACTION
SHARE OUTSTANDING [1] VALUE OPTIONS VALUE DEBT VALUE
- -------------- ------------- -------------- ----------- ------------ ------------ ------------------
<S> <C> <C> <C> <C> <C> <C>
$9.00 x 7,334 = $66,008 + $260 = $66,267 + $40,622 = $106,889
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
TRANSACTION EQUITY VALUE AS A MULTIPLE OF: TOTAL TRANSACTION VALUE AS A MULTIPLE OF:
- ---------------------------------------------------------------------------------------------------------------------------------
FISCAL FISCAL
-------------------------------------- --------------------------------------------
1999 2000 E [2] 2001 (E) [2] 1999 2000 E [2] 2001 (E) [2]
---- ---------- ------------ ---- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
NET INCOME 11.5 x 7.7 x 6.3 x REVENUES 0.89 x 0.89 x 0.85 x
BOOK VALUE 1.4 x EBITDA [3] 6.2 x 5.1 x 4.5 x
EBIT [4] 8.1 x 6.3 x 5.5 x
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
AVERAGE STOCK PRICE FOR LAST SPLIT-ADJUSTED LTM [5] LTM [5]
STOCK PRICE ------------------------------------ IPO PRICE HIGH CLOSING LOW CLOSING
AS OF 09/29/99 5 DAYS 30 DAYS 60 DAYS 90 DAYS 12/93 PRICE PRICE
-------------- ------ ------- ------- ------- ----- ----- -----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ACTUAL VALUE $5.13 $5.14 $5.50 $5.62 $5.64 $5.02 $8.00 $5.06
PREMIUM AT $9.00 PER SHARE 75.6% 75.2% 63.5% 60.1% 59.5% 79.4% 12.5% 77.8%
</TABLE>
<TABLE>
<CAPTION>
STOCK PRICE BEFORE ANNOUNCEMENT
----------------------------------------------------
09/29/99 1 WEEK PRIOR 4 WEEKS PRIOR
-------- ------------ -------------
<S> <C> <C> <C>
ACTUAL VALUE $5.13 $5.50 $5.81
PREMIUM AT $9.00 PER SHARE 75.6% 63.6% 54.8%
</TABLE>
- ---------------------------------------------------
[1] As of September 15, 1999.
[2] Projections provided by Palmetto management.
[3] Defined as earnings before interest, taxes, depreciation and amortization.
[4] Defined as earnings before interest and taxes.
[5] As of September 29, 1999.
<PAGE> 5
Robinson-Humphrey
PROJECT PALMETTO
Schedule of Outstanding Options
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Cumulative Cumulative
Options Exercise Aggregate Options Exercise
Outstanding Price Exercise Price Outstanding Price
----------- -------- -------------- ----------- ----------
<S> <C> <C> <C> <C>
71,950 $6.67 $479,907 71,950 $479,907
46,000 $7.00 $322,000 117,950 $801,907
14,000 $10.30 $144,200 131,950 $946,107
58,500 $11.00 $643,500 190,450 $1,589,607
----------- --------------
190,450 $1,431,071
</TABLE>
<TABLE>
<CAPTION>
Cumulative Additional
Deal Exercise In-the-Money Shares Fully Diluted
Price Price Options Outstanding Shares Out [1]
- ----------------- ------------ -------------------- ---------------- -------------------
<S> <C> <C> <C> <C>
$9.00 $801,907 117,950 24,849 7,363,026
</TABLE>
<TABLE>
<CAPTION>
Cumulative Net Value of
Deal In-the-Money Value of Exercise In-the-Money
Price Options Options Price Options
- ----------------- ------------ -------------------- ---------------- ------------------
<S> <C> <C> <C> <C>
$9.00 117,950 $1,061,550 $801,907 $259,644
</TABLE>
- ---------------------------------------------------------
[1] Assumes 7,334,177 pre-deal shares outstanding as of September 15, 1999,
and uses the treasury stock method.
<PAGE> 6
Robinson-Humphrey
PROJECT PALMETTO
HISTORICAL INCOME STATEMENTS
($ IN THOUSANDS)
<TABLE>
<CAPTION>
FISCAL YEAR
FISCAL YEAR ENDED JUNE, PRO FORMA ENDED JULY 3,
---------------------------------------------------------------- ----------- -------------
1994 1995 1996 1997 1998 1998[1] 1999
------- ------- ------- ------- -------- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
Net sales $41,559 $59,621 $70,714 $73,447 $ 71,861 $125,518 $ 119,660
% growth -- 43.5% 18.6% 3.9% (2.2%) 70.9% 66.5%
Cost of goods sold 28,343 38,885 45,281 45,624 46,591 72,960 72,377
------- ------- ------- ------- -------- -------- ---------
Gross profit 13,216 20,736 25,432 27,823 25,269 52,558 47,283
% margin 31.8% 34.8% 36.0% 37.9% 35.2% 41.9% 39.5%
Selling, general & administrative
expenses 8,114 13,040 15,560 16,305 16,337 37,734 34,159
------- ------- ------- ------- -------- -------- ---------
Operating income 5,102 7,696 9,872 11,518 8,933 14,824 13,124
% margin 12.3% 12.9% 14.0% 15.7% 12.4% 11.8% 11.0%
Interest expense, net 688 870 753 498 609 2,981 2,904
------- ------- ------- ------- -------- -------- ---------
Pre-tax income 4,414 6,826 9,119 11,020 8,324 11,843 10,220
% margin 10.6% 11.4% 12.9% 15.0% 11.6% 9.4% 8.5%
Income tax expense 1,638 1,287 2,676 3,993 3,292 4,876 4,458
------- ------- ------- ------- -------- -------- ---------
Net income $ 2,776 $ 5,539 $ 6,443 $ 7,027 $ 5,032 $ 6,967 $ 5,762
======= ======= ======= ======= ======== ======== =========
Weighted average shares
outstanding
Basic 4,114 7,425 7,457 7,486 7,447 7,447 7,349
Diluted 4,114 7,425 7,495 7,539 7,470 7,470 7,349
Earnings per share
Basic $ 0.67 $ 0.75 $ 0.86 $ 0.94 $ 0.68 $ 0.94 $ 0.78
======= ======= ======= ======= ======== ======== =========
Diluted $ 0.67 $ 0.75 $ 0.86 $ 0.93 $ 0.67 $ 0.93 $ 0.78
======= ======= ======= ======= ======== ======== =========
Other Operating Data:
Number of employees 1,177 1,472 1,446 1,569 1,378 1,816
Depreciation and amortization $ 1,010 $ 1,519 $ 1,751 $ 1,843 $ 2,283 $ 4,022 $ 3,994
Capital expenditures 2,765 2,678 2,602 5,706 6,984 7,240 5,173
EBITDA 6,111 9,215 11,623 13,361 11,215 18,846 17,118
EBITDA margin 14.7% 15.5% 16.4% 18.2% 15.6% 15.0% 14.3%
</TABLE>
- -----------------------
[1] Represents pro forma results for the acquisition of Simplicity as if it had
occurred at the beginning of 1998.
<PAGE> 7
Robinson-Humphrey
PROJECT PALMETTO
HISTORICAL BALANCE SHEETS
($ IN THOUSANDS)
<TABLE>
<CAPTION>
JUNE 29, JUNE 28, JUNE 27, JULY 3,
1996 1997 1998 1999
-------- ------- -------- --------
<S> <C> <C> <C> <C>
ASSETS:
Current Assets
Cash $ 190 $ 490 $ 2,333 $ 1,671
Accounts receivable 11,523 11,747 22,755 22,009
Inventories 20,065 25,340 30,358 30,657
Deferred income taxes - current portion 603 626 1,397 1,947
Prepaid expenses and other 942 427 3,781 2,689
-------- -------- -------- --------
Total current assets 33,322 38,629 60,624 58,973
Property and Equipment
Land and improvements 1,083 1,177 1,455 1,539
Buildings and improvements 6,780 9,655 15,114 17,338
Machinery and equipment 11,104 14,216 23,791 26,996
Total 18,967 25,049 40,361 45,873
Less: Accumulated depreciation (6,592) (8,486) (10,599) (13,788)
-------- -------- -------- --------
Total property and equipment, net 12,374 16,563 29,761 32,085
Intangible assets -- -- 20,367 20,740
Deferred income taxes 1,283 1,121 3,273 1,032
Deferred costs and other assets 299 246 1,668 549
-------- -------- -------- --------
Total Assets $ 47,278 $ 56,559 $115,692 $113,379
======== ======== ======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY:
Current Liabilities
Short-term borrowings $ 6,991 $ 10,406 $ 558 $ 385
Current maturities of long-term debt 478 208 2,104 2,000
Trade accounts payable 3,416 4,162 7,562 5,314
Accrued liabilities and other 2,977 2,880 15,402 13,088
-------- -------- -------- --------
Total current liabilities 13,861 17,656 25,626 20,787
Noncurrent Liabilities
Long-term debt 2,108 -- 42,508 39,908
Deferred income taxes 530 535 484 244
Other noncurrent liabilities -- -- 4,984 4,638
-------- -------- -------- --------
Total noncurrent liabilities 2,638 535 47,976 44,790
Shareholders' Equity
Common stock 16,896 16,970 16,245 16,596
Retained earnings 13,701 20,728 25,134 30,728
Cumulative translations gain 181 670 711 478
-------- -------- -------- --------
Total shareholders' equity 30,778 38,368 42,090 47,802
-------- -------- -------- --------
Total Liabilities and Shareholders' $ 47,278 $ 56,559 $115,692 $113,379
======== ======== ======== ========
</TABLE>
<PAGE> 8
Robinson-Humphrey
PROJECT PALMETTO
HISTORICAL CASH FLOW STATEMENTS
($ IN THOUSANDS)
<TABLE>
<CAPTION>
FISCAL YEARS ENDED JUNE,
---------------------------------------------------
1996 1997 1998 1999
-------- -------- ------- -------
<S> <C> <C> <C> <C>
OPERATING ACTIVITIES
Net income $ 6,443 $ 7,027 $ 5,032 $ 5,762
Adjustments to reconcile net income to
Net cash provided by operating activities:
Depreciation 1,663 1,760 2,224 3,278
Amortization of deferred expenses 88 83 59 716
Deferred tax (benefit) expense (758) (132) 241 1,457
Currency transaction gain (20) (63) (17) (77)
Loss (gain) on sale of plant and equipment (125) -- -- --
Change in assets and liabilities excluding
effects of businesses acquired:
Accounts receivable (1,732) 9 (698) 670
Inventories (171) (4,702) 434 (652)
Prepaid expenses and other (107) 543 (234) 1,251
Trade accounts payable (285) 636 (915) (2,203)
Accrued liabilities 106 53 1,092 (2,904)
------- ------- -------- -------
Net cash provided by operating activities 5,102 5,215 7,218 7,298
INVESTING ACTIVITIES
Sale of officer's life insurance 39 -- -- --
Redemption of certificates of deposit -- -- -- 1,350
Construction of new warehouse and dyehouse -- (3,741) (5,427) (1,493)
Purchase of digital catalog design equipment -- -- -- (997)
Purchase of London facilities (791) -- -- --
Purchases of other property and improvement (264) (400) -- (93)
Purchases of equipment (1,547) (1,566) (1,558) (2,590)
Payments for businesses, net of cash acquired (386) (85) (31,634) (1,228)
Sale of plant and equipment 138 323 81 --
------- ------- -------- -------
Net cash used in investing activities (2,811) (5,469) (38,538) (5,051)
FINANCING ACTIVITIES
Net borrowings (repayments) under line of
credit arrangements (2,006) 2,886 14,641 (259)
Borrowings of fixed rate debt -- -- 20,000 --
Principal payments on long-term debt (410) (2,336) (104) (2,183)
Payments of capitalized loan origination costs (1) -- (22) --
Principal payments under capital
lease obligations (151) (70) -- --
Proceeds from issuance of common stock,
net of expenses 325 74 47 36
Repurchase of Conso common stock -- -- (1,399) (503)
------- ------- -------- -------
Net cash provided by (used in) financing
activities $(2,244) $ 554 $ 33,163 $(2,909)
------- ------- -------- -------
Increase in cash $ 47 $ 300 $ 1,843 $ (662)
Cash at beginning of year $ 143 $ 190 $ 490 $ 2,333
------- ------- -------- -------
Cash at end of year $ 190 $ 490 $ 2,333 $ 1,671
</TABLE>
<PAGE> 9
Robinson-Humphrey
PROJECT PALMETTO
PROJECTED INCOME STATEMENTS [1]
($ IN THOUSANDS)
<TABLE>
<CAPTION>
PROJECTED FISCAL YEAR ENDING JUNE 2000, PROJECTED FISCAL YEAR ENDING JUNE 2001,
--------------------------------------------------- ------------------------------------------------
BRITISH FY 2000 BRITISH FY 2001
CONSO US TRIMMINGS SIMPLICITY CONSOLIDATED CONSO US TRIMMINGS SIMPLICITY CONSOLIDATED
--------- ---------- ---------- ------------ -------- --------- ---------- ------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net sales $ 54,500 $19,000 $ 46,000 $ 119,500 $ 57,225 $20,000 $48,300 $125,525
% growth 1.8% 6.3% (4.6%) (0.1%) 5.0% 5.3% 5.0% 5.0%
Costs of goods sold 32,500 13,600 23,000 69,100 33,477 14,000 24,150 71,627
-------- ------- -------- --------- -------- ------- ------- --------
Gross profit 22,000 5,400 23,000 50,400 23,748 6,000 24,150 53,898
% margin 40.4% 28.4% 50.0% 42.2% 41.5% 30.0% 50.0% 42.9%
Selling, general &
administrative expense 11,450 4,400 17,500 33,350 11,800 4,600 18,000 34,400
-------- ------- -------- --------- -------- ------- ------- --------
Operating income 10,550 1,000 5,500 17,050 11,948 1,400 6,150 19,498
% margin 19.4% 5.3% 12.0% 14.3% 20.9% 7.0% 12.7% 15.5%
Interest expense (income), net (200) 900 2,000 2,700 (250) 800 1,700 2,250
-------- ------- -------- --------- -------- ------- ------- --------
Pre-tax income 10,750 100 3,500 14,350 12,198 600 4,450 17,248
% margin 19.7% 0.5% 7.6% 12.0% 21.3% 3.0% 9.2% 13.7%
Income tax provision 4,085 35 1,602 5,722 4,635 210 1,963 6,808
-------- ------- -------- --------- -------- ------- ------- --------
Net income $ 6,665 $ 65 $ 1,898 $ 8,628 $ 7,563 $ 390 $ 2,487 $ 10,440
======== ======= ======== ========= ======== ======= ======= ========
Weighted average shares
outstanding 7,357 7,357 7,357 7,357 7,357 7,357 7,357 7,357
======== ======= ======== ========= ======== ======= ======= ========
Earnings per share $ 0.91 $ 0.01 $ 0.26 $ 1.17 $ 1.03 $ 0.05 $ 0.34 $ 1.42
======== ======= ======== ========= ======== ======= ======= ========
EBITDA NA NA NA $ 21,050 NA NA NA $ 23,498
<CAPTION>
PROJECTED FISCAL YEAR ENDING JUNE 2002,
-------------------------------------------------------
BRITISH FY 2002
CONSO US TRIMMINGS SIMPLICITY CONSOLIDATED
--------- --------- ---------- ------------
<S> <C> <C> <C> <C>
Net sales $ 60,000 $21,000 $50,000 $131,000
% growth 4.8% 5.0% 3.5% 4.4%
Costs of goods sold 34,800 14,280 25,000 74,080
-------- ------- ------- --------
Gross profit 25,200 6,720 25,000 56,920
% margin 42.0% 32.0% 50.0% 43.5%
Selling, general &
administrative expense 12,200 5,000 18,500 35,700
-------- ------- ------- --------
Operating income 13,000 1,720 6,500 21,220
% margin 21.7% 8.2% 13.0% 16.2%
Interest expense (income), net (300) 700 1,500 1,900
-------- ------- ------- --------
Pre-tax income 13,300 1,020 5,000 19,320
% margin 22.2% 4.9% 10.0% 14.7%
Income tax provision 5,054 357 2,172 7,583
-------- ------- ------- --------
Net income $ 8,246 $ 663 $ 2,828 $ 11,737
======== ======= ======= ========
Weighted average shares
outstanding 7,357 7,357 7,357 7,357
======== ======= ======= ========
Earnings per share $ 1.12 $ 0.09 $ 0.38 $ 1.60
======== ======= ======= ========
EBITDA NA NA NA $ 25,220
</TABLE>
- ------------------------------
[1] Projections provided by Palmetto Management.
<PAGE> 10
Robinson-Humphrey
PROJECT PALMETTO
VALUATION SUMMARY
($ IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
---------------------------------------
IMPLIED EQUITY VALUE PER SHARE
---------------------------------------
HIGH LOW AVERAGE
---------------------------------------
<S> <C> <C> <C>
I. ANALYSIS OF COMPARABLE COMPANIES
Utilizing Average Current Trading Multiples of Diversified Textile Companies
and Company Projections $11.95 $3.83 $8.13
Utilizing Average Current Trading Multiples of Limited Size Diversified Textile
Companies and Company Projections $11.28 $1.92 $6.94
II. ANALYSIS OF ACQUISITION PREMIUMS
TRANSACTIONS $50 - $150MM (1/1/98 - 09/29/99)
Based on Average Premium 1 Day Prior To Announcement Date NA NA $6.72
Based on Average Premium 1 Week Prior To Announcement Date NA NA $7.61
Based on Average Premium 4 Weeks Prior To Announcement Date NA NA $8.53
III. ANALYSIS OF MERGERS AND ACQUISITIONS
Utilizing Multiples of Recent Disclosed Textile Industry Transactions $16.72 $5.18 $11.52
Using Historical Mergerstat Review Reported Premiums
All Industries NA NA $7.17
Textile Industry NA NA $6.07
IV. DISCOUNTED CASH FLOW ANALYSIS $13.02 $5.70 $9.08
----------------------------------------
AVERAGE $7.97
MEDIAN $7.61
HIGH $11.52
LOW $6.07
</TABLE>
<PAGE> 11
Robinson-Humphrey
PROJECT PALMETTO
TRADING STATISTICS
SEPTEMBER 29, 1998 - SEPTEMBER 29, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AVERAGE CLOSING PRICE: AVERAGE DAILY VOLUME:
---------------------- ---------------------
<S> <C> <C> <C>
ONE YEAR $5.99 ONE YEAR 10,068
90 DAYS 5.64 90 DAYS 7,737
60 DAYS 5.62 60 DAYS 8,413
30 DAYS 5.50 30 DAYS 10,489
5 DAYS 5.14 5 DAYS 11,320
HIGH CLOSE $8.00 HIGH VOLUME 171,800
LOW CLOSE 5.06 LOW VOLUME 0
</TABLE>
<TABLE>
<CAPTION>
DATE HIGH LOW CLOSE VOLUME
- -------------- ------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
29-Sep-1999 5.25 4.75 5.13 25,300
28-Sep-1999 5.06 5.06 5.06 4,700
27-Sep-1999 5.13 5.13 5.13 200
24-Sep-1999 5.50 5.06 5.13 11,100
23-Sep-1999 5.25 5.13 5.25 15,300
22-Sep-1999 5.50 5.31 5.50 1,800
21-Sep-1999 5.31 5.31 5.31 1,300
20-Sep-1999 5.44 5.38 5.38 1,700
17-Sep-1999 5.38 5.38 5.38 200
16-Sep-1999 5.75 5.13 5.31 14,000
15-Sep-1999 5.38 5.13 5.13 22,100
14-Sep-1999 5.50 5.38 5.38 1,700
13-Sep-1999 5.75 5.50 5.50 900
10-Sep-1999 5.50 5.25 5.50 38,000
09-Sep-1999 5.75 5.50 5.50 3,700
08-Sep-1999 5.75 5.56 5.56 37,500
</TABLE>
<PAGE> 12
<TABLE>
<CAPTION>
DATE HIGH LOW CLOSE VOLUME
- -------------- ------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
07-Sep-1999 $5.88 $5.69 $5.69 46,200
03-Sep-1999 5.69 5.69 5.69 15,400
02-Sep-1999 5.88 5.63 5.81 3,700
01-Sep-1999 6.00 5.63 5.63 9,300
31-Aug-1999 6.00 5.63 5.81 NA
30-Aug-1999 5.63 5.63 5.63 200
27-Aug-1999 6.00 5.63 5.63 12,500
26-Aug-1999 6.00 5.88 6.00 7,200
25-Aug-1999 5.88 5.63 5.75 NA
24-Aug-1999 5.63 5.63 5.63 8,800
23-Aug-1999 5.75 5.56 5.63 5,800
20-Aug-1999 5.75 5.63 5.63 2,300
19-Aug-1999 5.75 5.75 5.75 1,000
18-Aug-1999 5.75 5.69 5.75 1,800
17-Aug-1999 5.75 5.69 5.69 800
16-Aug-1999 5.94 5.94 5.94 100
13-Aug-1999 5.75 5.75 5.63 1,900
12-Aug-1999 5.97 5.88 5.88 5,400
11-Aug-1999 6.00 6.00 5.88 2,200
10-Aug-1999 5.75 5.75 5.75 200
09-Aug-1999 5.97 5.86 5.75 NA
06-Aug-1999 6.06 6.00 6.00 500
05-Aug-1999 6.00 6.00 5.88 3,300
04-Aug-1999 5.88 5.63 5.88 21,700
03-Aug-1999 5.63 5.63 5.63 400
02-Aug-1999 5.63 5.63 5.63 100
30-July-1999 5.88 5.63 5.75 NA
29-July-1999 5.63 5.63 5.63 9,100
28-July-1999 5.75 5.63 5.63 1,200
27-July-1999 6.13 5.88 6.00 35,100
26-July-1999 5.63 5.63 5.63 200
23-July-1999 5.63 5.63 5.63 400
22-July-1999 5.63 5.63 5.63 1,000
21-July-1999 5.63 5.63 5.63 5,000
20-July-1999 5.91 5.69 5.91 14,600
19-July-1999 5.78 5.77 5.78 700
15-July-1999 5.75 5.75 5.75 9,100
14-July-1999 5.81 0.22 5.81 7,300
13-July-1999 5.75 5.63 5.69 4,800
12-July-1999 5.63 5.63 5.63 13,500
</TABLE>
<PAGE> 13
<TABLE>
<CAPTION>
DATE HIGH LOW CLOSE VOLUME
- -------------- ------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
09-July-1999 $5.69 $5.44 $5.44 18,700
08-July-1999 5.69 5.69 5.69 100
07-July-1999 5.69 5.56 5.69 12,200
06-July-1999 5.69 5.50 5.69 7,800
02-July-1999 5.75 5.63 5.69 14,400
01-July-1999 5.75 5.50 5.75 12,700
30-June-1999 5.75 5.63 5.75 1,200
29-June-1999 NA NA NA NA
28-June-1999 5.75 5.63 5.69 2,100
25-June-1999 5.63 5.50 5.63 1,700
24-June-1999 5.63 5.63 5.63 7,200
23-June-1999 5.63 5.50 5.63 5,000
22-June-1999 NA NA NA NA
21-June-1999 NA NA NA NA
18-June-1999 5.63 5.25 5.63 13,000
17-June-1999 5.56 5.31 5.31 29,600
16-June-1999 5.75 5.63 5.63 4,500
15-June-1999 5.88 5.56 5.88 3,000
14-June-1999 5.75 5.38 5.75 8,600
11-June-1999 5.63 5.63 5.63 500
10-June-1999 5.75 5.50 5.50 600
09-June-1999 5.50 5.44 5.50 8,900
08-June-1999 5.56 5.50 5.50 8,300
07-June-1999 5.75 5.69 5.69 3,100
04-June-1999 5.75 5.75 5.75 200
03-June-1999 5.50 5.50 5.50 300
02-June-1999 NA NA NA NA
01-June-1999 5.88 5.50 5.50 3,600
28-May-1999 5.94 5.94 5.94 800
27-May-1999 5.81 5.81 5.81 2,600
26-May-1999 5.94 5.69 5.94 19,000
25-May-1999 5.94 5.69 5.94 400
24-May-1999 6.00 5.81 6.00 5,700
21-May-1999 5.81 5.63 5.81 6,300
20-May-1999 5.69 5.63 5.69 6,500
19-May-1999 NA NA NA NA
18-May-1999 5.56 5.56 5.56 12,000
17-May-1999 NA NA NA NA
14-May-1999 5.63 5.56 5.56 6,400
13-May-1999 5.81 5.44 5.69 3,800
</TABLE>
<PAGE> 14
<TABLE>
<CAPTION>
DATE HIGH LOW CLOSE VOLUME
- -------------- ------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
12-May-1999 $5.56 $5.56 $5.56 200
11-May-1999 5.75 5.56 5.56 8,100
10-May-1999 5.88 5.50 5.63 3,900
07-May-1999 5.88 5.38 5.63 12,700
06-May-1999 5.56 5.31 5.56 5,200
05-May-1999 5.56 5.25 5.56 14,800
04-May-1999 5.63 5.25 5.56 15,700
03-May-1999 5.88 5.63 5.63 6,400
30-Apr-1999 5.75 5.38 5.50 14,100
29-Apr-1999 5.94 5.50 5.75 7,600
28-Apr-1999 6.00 5.75 5.84 11,100
27-Apr-1999 5.94 5.75 5.94 1,100
26-Apr-1999 5.94 5.94 5.94 1,000
23-Apr-1999 5.94 5.88 5.94 4,400
22-Apr-1999 6.00 5.75 6.00 19,400
21-Apr-1999 5.88 5.63 5.88 7,100
20-Apr-1999 5.50 5.50 5.50 34,800
19-Apr-1999 5.56 5.25 5.50 35,900
16-Apr-1999 5.63 5.13 5.56 31,400
15-Apr-1999 5.38 5.00 5.25 12,500
14-Apr-1999 5.50 5.25 5.50 7,800
13-Apr-1999 5.50 5.31 5.31 1,300
12-Apr-1999 5.38 5.25 5.31 8,400
09-Apr-1999 5.63 5.25 5.25 7,400
08-Apr-1999 5.75 5.75 5.75 100
07-Apr-1999 5.75 5.63 5.75 16,400
06-Apr-1999 6.00 5.63 5.75 31,300
05-Apr-1999 6.25 5.50 5.50 14,800
01-Apr-1999 6.31 6.00 6.00 7,900
31-Mar-1999 6.25 6.06 6.13 26,800
30-Mar-1999 6.06 6.00 6.03 1,500
29-Mar-1999 6.19 6.03 6.06 2,500
26-Mar-1999 6.13 6.00 6.13 1,000
25-Mar-1999 6.25 6.25 6.25 100
24-Mar-1999 6.06 6.06 6.06 100
23-Mar-1999 6.25 6.06 6.25 1,400
22-Mar-1999 6.13 6.13 6.13 1,200
19-Mar-1999 6.28 6.25 6.25 6,700
18-Mar-1999 6.50 6.31 6.50 12,400
17-Mar-1999 6.25 6.13 6.25 8,300
</TABLE>
<PAGE> 15
<TABLE>
<CAPTION>
DATE HIGH LOW CLOSE VOLUME
- -------------- ------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
16-Mar-1999 $6.31 $5.94 $6.00 18,500
15-Mar-1999 6.28 6.25 6.25 5,500
12-Mar-1999 7.00 6.50 6.50 9,700
11-Mar-1999 6.75 6.56 6.69 1,800
10-Mar-1999 6.56 6.56 6.56 1,600
09-Mar-1999 6.38 6.38 6.38 1,300
08-Mar-1999 6.88 6.38 6.63 0
05-Mar-1999 6.53 6.00 6.50 9,100
04-Mar-1999 7.13 6.63 6.88 8,900
03-Mar-1999 6.75 6.50 6.75 1,200
02-Mar-1999 7.19 7.00 7.19 25,500
01-Mar-1999 7.44 7.00 7.38 19,900
26-Feb-1999 7.00 6.56 7.00 4,600
25-Feb-1999 7.00 6.50 6.53 1,700
24-Feb-1999 7.25 6.50 7.25 3,300
23-Feb-1999 7.25 6.75 6.75 900
22-Feb-1999 6.50 6.50 6.50 200
19-Feb-1999 6.50 6.50 6.50 200
18-Feb-1999 6.75 6.50 6.75 1,000
17-Feb-1999 7.00 7.00 7.00 2,000
16-Feb-1999 7.13 6.75 7.13 4,800
12-Feb-1999 7.25 7.00 7.00 600
11-Feb-1999 7.50 7.13 7.25 16,600
10-Feb-1999 7.50 6.75 7.00 13,300
09-Feb-1999 7.00 6.75 6.75 6,800
08-Feb-1999 7.00 6.75 7.00 10,500
05-Feb-1999 7.00 6.75 6.81 2,800
04-Feb-1999 7.25 6.88 6.88 7,800
03-Feb-1999 7.81 7.63 7.63 2,500
02-Feb-1999 8.00 7.63 8.00 3,800
01-Feb-1999 7.75 7.63 7.75 3,600
29-Jan-1999 8.63 7.25 8.00 35,800
28-Jan-1999 7.25 6.88 7.25 6,400
27-Jan-1999 6.88 6.88 6.88 300
26-Jan-1999 6.88 6.88 6.88 200
25-Jan-1999 7.19 6.88 7.03 0
22-Jan-1999 6.75 6.75 6.75 2,200
21-Jan-1999 7.25 6.81 7.03 0
20-Jan-1999 6.75 6.63 6.75 51,100
19-Jan-1999 6.75 6.63 6.63 5,900
</TABLE>
<PAGE> 16
<TABLE>
<CAPTION>
DATE HIGH LOW CLOSE VOLUME
- -------------- ------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
15-Jan-1999 $7.00 $6.50 $6.88 15,000
14-Jan-1999 6.69 6.50 6.50 18,700
13-Jan-1999 7.25 6.00 6.88 23,100
12-Jan-1999 6.88 6.63 6.88 1,800
11-Jan-1999 6.88 6.63 6.63 13,200
08-Jan-1999 6.88 6.38 6.88 4,000
07-Jan-1999 7.00 6.50 6.50 5,200
06-Jan-1999 6.75 6.28 6.28 3,200
05-Jan-1999 6.75 6.13 6.75 15,200
04-Jan-1999 6.50 6.00 6.00 27,800
31-Dec-1998 6.00 5.81 5.88 41,100
30-Dec-1998 6.00 5.75 5.81 14,000
29-Dec-1998 6.19 5.88 5.88 13,100
28-Dec-1998 6.38 6.00 6.13 66,700
24-Dec-1998 6.50 6.25 6.38 2,400
23-Dec-1998 6.09 6.06 6.06 7,600
22-Dec-1998 6.00 5.88 5.88 3,400
21-Dec-1998 6.25 5.88 6.25 7,900
18-Dec-1998 6.25 5.88 6.00 9,500
17-Dec-1998 6.13 5.50 6.06 24,900
16-Dec-1998 5.88 5.25 5.63 7,800
15-Dec-1998 5.63 5.63 5.63 18,400
14-Dec-1998 5.75 5.50 5.63 43,600
11-Dec-1998 5.56 5.50 5.50 2,700
10-Dec-1998 5.69 5.50 5.50 12,100
09-Dec-1998 5.69 5.50 5.50 8,600
08-Dec-1998 5.75 5.50 5.63 7,900
07-Dec-1998 5.75 5.38 5.63 21,000
04-Dec-1998 5.81 5.75 5.81 2,300
03-Dec-1998 5.92 5.88 5.88 6,800
02-Dec-1998 5.81 5.69 5.81 3,000
01-Dec-1998 5.97 5.94 5.94 4,000
30-Nov-1998 6.13 5.81 6.06 5,500
27-Nov-1998 6.19 6.06 6.13 4,300
25-Nov-1998 6.19 6.06 6.06 2,100
24-Nov-1998 6.25 6.06 6.16 0
23-Nov-1998 6.38 6.00 6.00 5,300
20-Nov-1998 6.25 6.13 6.13 1,800
19-Nov-1998 6.13 6.13 6.13 1,500
18-Nov-1998 6.25 6.00 6.13 30,400
</TABLE>
<PAGE> 17
<TABLE>
<CAPTION>
DATE HIGH LOW CLOSE VOLUME
- -------------- ------------- ------------- -------------- ----------------
<S> <C> <C> <C> <C>
17-Nov-1998 $6.13 $6.13 $6.13 1,000
16-Nov-1998 6.25 6.00 6.06 35,500
13-Nov-1998 6.13 5.75 5.81 171,800
12-Nov-1998 6.75 6.13 6.75 15,500
11-Nov-1998 7.25 6.56 6.63 17,100
10-Nov-1998 7.25 6.81 7.00 67,200
09-Nov-1998 6.13 6.06 6.06 20,700
06-Nov-1998 6.25 6.06 6.06 3,000
05-Nov-1998 6.25 6.00 6.25 6,800
04-Nov-1998 6.25 6.00 6.06 9,800
03-Nov-1998 6.13 6.06 6.13 64,000
02-Nov-1998 6.00 5.75 6.00 2,900
30-Oct-1998 6.19 5.88 5.88 1,300
29-Oct-1998 6.00 6.00 6.00 400
28-Oct-1998 6.03 5.75 5.75 10,300
27-Oct-1998 6.25 6.00 6.00 9,200
26-Oct-1998 6.25 6.13 6.13 2,300
23-Oct-1998 6.25 6.13 6.19 0
22-Oct-1998 6.00 5.88 6.00 10,500
21-Oct-1998 6.25 5.81 6.00 2,500
20-Oct-1998 6.25 5.78 6.00 2,100
19-Oct-1998 6.00 5.63 5.75 4,100
16-Oct-1998 6.00 5.63 5.81 0
15-Oct-1998 6.00 5.53 5.53 1,200
14-Oct-1998 5.88 5.63 5.75 0
13-Oct-1998 5.56 5.56 5.56 100
12-Oct-1998 5.63 5.50 5.63 50,400
09-Oct-1998 6.00 5.50 5.63 25,100
08-Oct-1998 6.00 5.25 5.50 14,600
07-Oct-1998 5.88 5.69 5.88 1,400
06-Oct-1998 6.00 5.50 5.50 3,100
05-Oct-1998 5.88 5.88 5.88 200
02-Oct-1998 5.88 5.50 5.88 1,100
01-Oct-1998 5.75 5.50 5.50 9,500
30-Sep-1998 6.00 6.00 6.00 5,100
29-Sep-1998 6.38 6.00 6.19 0
</TABLE>
- --------------------------------
Source: FactSet as of September 29, 1999.
<PAGE> 18
Robinson-Humphrey
PROJECT PALMETTO
Price and Volume - One Year
Daily from September 29, 1998 - September 29, 1999
[Graph]
<TABLE>
<CAPTION>
DATE VOLUME PRICE CLOSE
- -------- ------ -----------
(in Thousands)
<S> <C> <C>
09/29/98 0.00 $6.19
09/30/98 5.10 $6.00
10/01/98 9.50 $5.50
10/02/98 1.10 $5.88
10/05/98 0.20 $5.88
10/06/98 3.10 $5.50
10/07/98 1.40 $5.88
10/08/98 14.60 $5.50
10/09/98 25.10 $5.63
10/12/98 50.40 $5.63
10/13/98 0.10 $5.56
10/14/98 0.00 $5.75
10/15/98 1.20 $5.53
10/16/98 0.00 $5.81
10/19/98 4.10 $5.75
10/20/98 2.10 $6.00
10/21/98 2.50 $6.00
10/22/98 10.50 $6.00
10/23/98 0.00 $6.19
10/26/98 2.30 $6.13
10/27/98 9.20 $6.00
10/28/98 10.30 $5.75
10/29/98 0.40 $6.00
10/30/98 1.30 $5.88
11/02/98 2.90 $6.00
11/03/98 64.00 $6.13
11/04/98 9.80 $6.06
11/05/98 6.80 $6.25
11/06/98 3.00 $6.06
11/09/98 20.70 $6.06
11/10/98 67.20 $7.00
11/11/98 17.10 $6.63
11/12/98 15.50 $6.75
11/13/98 171.80 $5.81
11/16/98 35.50 $6.06
11/17/98 1.00 $6.13
11/18/98 30.40 $6.13
11/19/98 1.50 $6.13
11/20/98 1.80 $6.13
11/23/98 5.30 $6.00
11/24/98 0.00 $6.16
11/25/98 2.10 $6.06
11/27/98 4.30 $6.13
11/30/98 5.50 $6.06
12/01/98 4.00 $5.94
12/02/98 3.00 $5.81
12/03/98 6.80 $5.88
12/04/98 2.30 $5.81
12/07/98 21.00 $5.63
12/08/98 7.90 $5.63
12/09/98 8.60 $5.50
</TABLE>
<PAGE> 19
<TABLE>
<S> <C> <C>
12/10/98 12.10 $5.50
12/11/98 2.70 $5.50
12/14/98 43.60 $5.63
12/15/98 18.40 $5.63
12/16/98 7.80 $5.63
12/17/98 24.90 $6.06
12/18/98 9.50 $6.00
12/21/98 7.90 $6.25
12/22/98 3.40 $5.88
12/23/98 7.60 $6.06
12/24/98 2.40 $6.38
12/28/98 66.70 $6.13
12/29/98 13.10 $5.88
12/30/98 14.00 $5.81
12/31/98 41.10 $5.88
01/04/99 27.80 $6.00
01/05/99 15.20 $6.75
01/06/99 3.20 $6.28
01/07/99 5.20 $6.50
01/08/99 4.00 $6.88
01/11/99 13.20 $6.63
01/12/99 1.80 $6.88
01/13/99 23.10 $6.88
01/14/99 18.70 $6.50
01/15/99 15.00 $6.88
01/19/99 5.90 $6.63
01/20/99 51.10 $6.75
01/21/99 0.00 $7.03
01/22/99 2.20 $6.75
01/25/99 0.00 $7.03
01/26/99 0.20 $6.88
01/27/99 0.30 $6.88
01/28/99 6.40 $7.25
01/29/99 35.80 $8.00
02/01/99 3.60 $7.75
02/02/99 3.80 $8.00
02/03/99 2.50 $7.63
02/04/99 7.80 $6.88
02/05/99 2.80 $6.81
02/08/99 10.50 $7.00
02/09/99 6.80 $6.75
02/10/99 13.30 $7.00
02/11/99 16.60 $7.25
02/12/99 0.60 $7.00
02/16/99 4.80 $7.13
02/17/99 2.00 $7.00
02/18/99 1.00 $6.75
02/19/99 0.20 $6.50
02/22/99 0.20 $6.50
02/23/99 0.90 $6.75
02/24/99 3.30 $7.25
02/25/99 1.70 $6.53
02/26/99 4.60 $7.00
03/01/99 19.90 $7.38
</TABLE>
<PAGE> 20
<TABLE>
<S> <C> <C>
03/02/99 25.50 $7.19
03/03/99 1.20 $6.75
03/04/99 8.90 $6.88
03/05/99 9.10 $6.50
03/08/99 0.00 $6.63
03/09/99 1.30 $6.38
03/10/99 1.60 $6.56
03/11/99 1.80 $6.69
03/12/99 9.70 $6.50
03/15/99 5.50 $6.25
03/16/99 18.50 $6.00
03/17/99 8.30 $6.25
03/18/99 12.40 $6.50
03/19/99 6.70 $6.25
03/22/99 1.20 $6.13
03/23/99 1.40 $6.25
03/24/99 0.10 $6.06
03/25/99 0.10 $6.25
03/26/99 1.00 $6.13
03/29/99 2.50 $6.06
03/30/99 1.50 $6.03
03/31/99 26.80 $6.13
04/01/99 7.90 $6.00
04/05/99 14.80 $5.50
04/06/99 31.30 $5.75
04/07/99 16.40 $5.75
04/08/99 0.10 $5.75
04/09/99 7.40 $5.25
04/12/99 8.40 $5.31
04/13/99 1.30 $5.31
04/14/99 7.80 $5.50
04/15/99 12.50 $5.25
04/16/99 31.40 $5.56
04/19/99 35.90 $5.50
04/20/99 34.80 $5.50
04/21/99 7.10 $5.88
04/22/99 19.40 $6.00
04/23/99 4.40 $5.94
04/26/99 1.00 $5.94
04/27/99 1.10 $5.94
04/28/99 11.10 $5.84
04/29/99 7.60 $5.75
04/30/99 14.10 $5.50
05/03/99 6.40 $5.63
05/04/99 15.70 $5.56
05/05/99 14.80 $5.56
05/06/99 5.20 $5.56
05/07/99 12.70 $5.63
05/10/99 3.90 $5.63
05/11/99 8.10 $5.56
05/12/99 0.20 $5.56
05/13/99 3.80 $5.69
05/14/99 6.40 $5.56
05/17/99 0.00 $5.53
</TABLE>
<PAGE> 21
<TABLE>
<S> <C> <C>
05/18/99 12.00 $5.56
05/19/99 0.00 $5.59
05/20/99 6.50 $5.69
05/21/99 6.30 $5.81
05/24/99 5.70 $6.00
05/25/99 0.40 $5.94
05/26/99 19.00 $5.94
05/27/99 2.60 $5.81
05/28/99 0.80 $5.94
06/01/99 3.60 $5.50
06/02/99 0.00 $5.66
06/03/99 0.30 $5.50
06/04/99 0.20 $5.75
06/07/99 3.10 $5.69
06/08/99 8.30 $5.50
06/09/99 8.90 $5.50
06/10/99 0.60 $5.50
06/11/99 0.50 $5.63
06/14/99 8.60 $5.75
06/15/99 3.00 $5.88
06/16/99 4.50 $5.63
06/17/99 29.60 $5.31
06/18/99 13.00 $5.63
06/21/99 0.00 $5.56
06/22/99 0.00 $5.56
06/23/99 5.00 $5.63
06/24/99 7.20 $5.63
06/25/99 1.70 $5.63
06/28/99 2.10 $5.69
06/29/99 0.00 $5.69
06/30/99 1.20 $5.75
07/01/99 12.70 $5.75
07/02/99 14.40 $5.69
07/06/99 7.80 $5.69
07/07/99 12.20 $5.69
07/08/99 0.10 $5.69
07/09/99 18.70 $5.44
07/12/99 13.50 $5.63
07/13/99 4.80 $5.69
07/14/99 7.30 $5.81
07/15/99 9.10 $5.75
07/16/99 0.10 $5.75
07/19/99 0.70 $5.78
07/20/99 14.60 $5.91
07/21/99 5.00 $5.63
07/22/99 1.00 $5.63
07/23/99 0.40 $5.63
07/26/99 0.20 $5.63
07/27/99 35.10 $6.00
07/28/99 1.20 $5.63
07/29/99 9.10 $5.63
07/30/99 0.00 $5.75
08/02/99 0.10 $5.63
08/03/99 0.40 $5.63
</TABLE>
<PAGE> 22
<TABLE>
<S> <C> <C>
08/04/99 21.70 $5.88
08/05/99 3.30 $6.00
08/06/99 0.50 $6.00
08/09/99 0.00 $5.86
08/10/99 0.20 $5.75
08/11/99 2.20 $6.00
08/12/99 5.40 $5.88
08/13/99 1.90 $5.75
08/16/99 0.10 $5.94
08/17/99 0.80 $5.69
08/18/99 1.80 $5.75
08/19/99 1.00 $5.75
08/20/99 2.30 $5.63
08/23/99 5.80 $5.63
08/24/99 8.80 $5.63
08/25/99 0.00 $5.75
08/26/99 7.20 $6.00
08/27/99 12.50 $5.63
08/30/99 0.20 $5.63
08/31/99 0.00 $5.81
09/01/99 9.30 $5.63
09/02/99 3.70 $5.81
09/03/99 15.40 $5.69
09/07/99 46.20 $5.69
09/08/99 37.50 $5.56
09/09/99 3.70 $5.50
09/10/99 38.00 $5.50
09/13/99 0.90 $5.50
09/14/99 1.70 $5.38
09/15/99 22.10 $5.13
09/16/99 14.00 $5.31
09/17/99 0.20 $5.38
09/20/99 1.70 $5.38
09/21/99 1.30 $5.31
09/22/99 1.80 $5.50
09/23/99 15.30 $5.25
09/24/99 11.10 $5.13
09/27/99 0.20 $5.13
09/28/99 4.70 $5.06
09/29/99 25.30 $5.13
</TABLE>
<PAGE> 23
Robinson-Humphrey
PROJECT PALMETTO
Price and Volume - Two Years
Weekly from October 3, 1997 - September 24, 1999
<TABLE>
<CAPTION>
DATE VOLUME PRICE CLOSE
(in Thousands)
<S> <C> <C>
10/03/97 86.80 $11.00
10/10/97 49.90 $10.75
10/17/97 95.40 $10.50
10/24/97 50.60 $10.38
10/31/97 62.70 $10.38
11/07/97 39.60 $10.00
11/14/97 360.40 $ 8.25
11/21/97 50.10 $ 8.50
11/28/97 35.50 $ 8.13
12/05/97 99.00 $ 7.50
12/12/97 55.50 $ 7.50
12/19/97 262.10 $ 7.38
12/26/97 188.60 $ 7.38
01/02/98 258.20 $ 8.00
01/09/98 25.10 $ 7.56
01/16/98 56.50 $ 7.63
01/23/98 10.80 $ 7.50
01/30/98 15.70 $ 7.38
02/06/98 66.90 $ 7.88
02/13/98 83.60 $ 7.50
02/20/98 14.00 $ 7.50
02/27/98 98.90 $ 7.75
03/06/98 30.50 $ 7.63
03/13/98 249.70 $ 8.00
03/20/98 188.90 $ 8.38
03/27/98 55.70 $ 8.19
04/03/98 277.50 $ 8.25
04/09/98 67.50 $ 8.13
04/17/98 532.20 $ 9.88
04/24/98 96.20 $ 9.13
05/01/98 65.80 $ 8.88
05/08/98 77.50 $ 8.75
05/15/98 92.90 $ 8.66
05/22/98 16.20 $ 8.75
05/29/98 37.20 $ 8.75
06/05/98 10.60 $ 8.50
06/12/98 244.10 $ 9.06
06/19/98 73.80 $ 8.50
06/26/98 80.80 $ 8.25
07/02/98 68.90 $ 8.25
07/10/98 70.70 $ 8.00
07/17/98 35.80 $ 7.88
07/24/98 23.00 $ 7.38
07/31/98 18.80 $ 7.13
08/07/98 27.60 $ 6.75
08/14/98 92.30 $ 6.25
08/21/98 191.70 $ 7.00
08/28/98 45.50 $ 6.25
09/04/98 32.50 $ 6.13
</TABLE>
<PAGE> 24
<TABLE>
<S> <C> <C>
09/11/98 34.80 $6.00
09/18/98 5.20 $5.63
09/25/98 113.30 $6.13
10/02/98 15.70 $5.88
10/09/98 44.40 $5.63
10/16/98 51.70 $5.81
10/23/98 19.20 $6.19
10/30/98 23.50 $5.88
11/06/98 86.50 $6.06
11/13/98 292.30 $5.81
11/20/98 70.20 $6.13
11/27/98 11.70 $6.13
12/04/98 21.60 $5.81
12/11/98 52.30 $5.50
12/18/98 104.20 $6.00
12/24/98 21.30 $6.38
12/31/98 134.90 $5.88
01/08/99 55.40 $6.88
01/15/99 71.80 $6.88
01/22/99 59.20 $6.75
01/29/99 42.70 $8.00
02/05/99 20.50 $6.81
02/12/99 47.80 $7.00
02/19/99 8.00 $6.50
02/26/99 10.70 $7.00
03/05/99 64.60 $6.50
03/12/99 14.40 $6.50
03/19/99 51.40 $6.25
03/26/99 3.80 $6.13
04/01/99 38.70 $6.00
04/09/99 70.00 $5.25
04/16/99 61.40 $5.56
04/23/99 101.60 $5.94
04/30/99 34.90 $5.50
05/07/99 54.80 $5.63
05/14/99 22.40 $5.56
05/21/99 24.80 $5.81
05/28/99 28.50 $5.94
06/04/99 4.10 $5.75
06/11/99 21.40 $5.63
06/18/99 58.70 $5.63
06/25/99 13.90 $5.63
07/02/99 30.40 $5.69
07/09/99 38.80 $5.44
07/16/99 34.80 $5.75
07/23/99 21.70 $5.63
07/30/99 45.60 $5.75
08/06/99 26.00 $6.00
08/13/99 9.70 $5.75
08/20/99 6.00 $5.63
08/27/99 34.30 $5.63
09/03/99 28.60 $5.69
09/10/99 125.40 $5.50
09/17/99 38.90 $5.38
</TABLE>
<PAGE> 25
<TABLE>
<S> <C> <C>
09/24/99 31.20 $5.13
</TABLE>
<PAGE> 26
Robinson-Humphrey
PROJECT PALMETTO
Price and Volume - Since IPO
Monthly from December 31, 1993 - August 31, 1999
<TABLE>
<CAPTION>
DATE VOLUME PRICE CLOSE
(in Thousands)
<S> <C> <C>
12/31/93 2,381.85 $ 5.22
01/31/94 973.13 $ 5.39
02/28/94 1,101.38 $ 5.83
03/31/94 693.68 $ 6.67
04/29/94 70.20 $ 6.33
05/31/94 327.83 $ 5.67
06/30/94 197.10 $ 6.11
07/29/94 143.33 $ 5.67
08/31/94 487.35 $ 5.78
09/30/94 32.85 $ 6.33
10/31/94 97.43 $ 6.56
11/30/94 103.73 $ 5.56
12/30/94 138.38 $ 5.67
01/31/95 392.40 $ 5.89
02/28/95 233.10 $ 6.56
03/31/95 179.55 $ 6.22
04/28/95 92.70 $ 6.11
05/31/95 140.63 $ 6.22
06/30/95 524.48 $ 6.22
07/31/95 385.65 $ 6.22
08/31/95 717.53 $ 6.44
09/29/95 1,104.98 $ 7.33
10/31/95 314.48 $ 8.00
11/30/95 539.40 $10.50
12/29/95 636.45 $12.17
01/31/96 392.70 $12.00
02/29/96 585.30 $10.75
03/29/96 1,002.90 $11.83
04/30/96 321.00 $10.50
05/31/96 492.30 $11.67
06/28/96 225.90 $10.83
07/31/96 101.55 $10.17
08/30/96 357.45 $11.17
09/30/96 810.15 $12.83
10/31/96 180.75 $14.25
11/29/96 179.50 $13.25
12/31/96 64.80 $12.88
01/31/97 123.40 $12.63
02/28/97 204.10 $14.50
03/31/97 199.30 $13.88
04/30/97 416.20 $13.63
05/30/97 414.60 $13.25
06/30/97 573.50 $12.25
07/31/97 300.00 $12.13
08/29/97 1,523.80 $10.63
09/30/97 633.80 $10.88
10/31/97 306.00 $10.38
11/28/97 485.60 $ 8.13
12/31/97 858.50 $ 7.63
</TABLE>
<PAGE> 27
<TABLE>
<S> <C> <C>
01/30/98 113.00 $7.38
02/27/98 263.40 $7.75
03/31/98 585.80 $8.44
04/30/98 965.30 $8.75
05/29/98 236.70 $8.75
06/30/98 435.40 $8.25
07/31/98 191.10 $7.13
08/31/98 362.20 $6.00
09/30/98 185.80 $6.00
10/30/98 149.40 $5.88
11/30/98 466.20 $6.06
12/31/98 328.80 $5.88
01/29/99 229.10 $8.00
02/26/99 87.00 $7.00
03/31/99 165.00 $6.13
04/30/99 275.80 $5.50
05/28/99 130.50 $5.94
06/30/99 101.40 $5.75
07/30/99 168.00 $5.75
08/31/99 76.20 $5.81
</TABLE>
<PAGE> 28
Robinson-Humphrey
PROJECT PALMETTO
Indexed Price Comparison - One Year
Daily from September 29, 1998 - September 29, 1999
<TABLE>
<CAPTION>
DATE PALMETTO NASDAQ S&P 500 DIVERSIFIED TEXTILE COMP
<S> <C> <C> <C> <C>
09/29/98 100.00 100.00 100.00 100.00
09/30/98 96.97 97.68 96.95 100.90
10/01/98 88.89 92.98 94.03 97.00
10/02/98 94.95 93.13 95.57 97.80
10/05/98 94.95 88.62 94.24 94.77
10/06/98 88.89 87.13 93.86 94.09
10/07/98 94.95 84.35 92.53 90.32
10/08/98 88.89 81.84 91.46 85.50
10/09/98 90.91 86.07 93.84 88.34
10/12/98 90.91 89.16 95.11 89.21
10/13/98 89.90 87.05 94.83 90.09
10/14/98 92.93 88.87 95.85 92.47
10/15/98 89.39 92.90 99.85 92.41
10/16/98 93.94 93.48 100.71 93.74
10/19/98 92.93 95.08 101.27 96.25
10/20/98 96.97 94.53 101.42 99.71
10/21/98 96.97 96.58 101.99 97.55
10/22/98 96.97 98.19 102.81 97.66
10/23/98 100.00 97.68 102.06 97.92
10/26/98 98.99 99.48 102.22 99.09
10/27/98 96.97 99.05 101.56 96.27
10/28/98 92.93 100.19 101.82 95.96
10/29/98 96.97 101.33 103.52 97.12
10/30/98 94.95 102.15 104.73 98.66
11/02/98 96.97 103.86 105.97 103.87
11/03/98 98.99 103.14 105.89 106.12
11/04/98 97.98 105.16 106.64 106.78
11/05/98 101.01 105.94 108.09 105.51
11/06/98 97.98 107.06 108.77 107.17
11/09/98 97.98 107.32 107.74 107.75
11/10/98 113.13 107.59 107.55 105.71
11/11/98 107.07 107.39 106.86 104.44
11/12/98 109.09 106.75 106.55 105.94
11/13/98 93.94 106.57 107.31 105.85
11/16/98 97.98 107.36 108.28 103.63
11/17/98 98.99 108.33 108.61 103.23
11/18/98 98.99 109.42 109.10 104.52
11/19/98 98.99 110.71 109.87 104.99
11/20/98 98.99 111.20 110.92 104.61
11/23/98 96.97 114.03 113.27 106.17
11/24/98 99.49 113.37 112.77 104.10
11/25/98 97.98 114.48 113.14 104.84
11/27/98 98.99 116.29 113.66 105.05
11/30/98 97.98 112.43 110.93 104.46
12/01/98 95.96 115.55 112.04 104.48
12/02/98 93.94 115.06 111.65 103.71
12/03/98 94.95 112.70 109.64 103.50
12/04/98 93.94 115.52 112.18 102.70
12/07/98 90.91 117.68 113.22 103.62
</TABLE>
<PAGE> 29
Robinson-Humphrey
PROJECT PALMETTO
Indexed Price Comparison - One Year
Daily from September 29, 1998 - September 29, 1999
<TABLE>
<CAPTION>
DATE PALMETTO NASDAQ S&P 500 DIVERSIFIED TEXTILE COMP
<S> <C> <C> <C> <C>
12/08/98 90.91 117.34 112.62 103.08
12/09/98 88.89 118.24 112.82 103.50
12/10/98 88.89 116.26 111.06 101.37
12/11/98 88.89 117.03 111.20 100.21
12/14/98 90.91 113.43 108.79 99.03
12/15/98 90.91 116.06 110.85 99.19
12/16/98 90.91 115.88 110.76 97.56
12/17/98 97.98 117.87 112.48 99.93
12/18/98 96.97 120.30 113.25 97.60
12/21/98 101.01 123.30 114.66 100.34
12/22/98 94.95 122.31 114.73 98.31
12/23/98 97.98 125.29 117.11 100.24
12/24/98 103.03 124.74 116.90 99.62
12/28/98 98.99 125.73 116.82 100.47
12/29/98 94.95 125.82 118.38 101.57
12/30/98 93.94 124.96 117.44 104.03
12/31/98 94.95 126.45 117.18 108.91
01/04/99 96.97 127.33 117.07 106.41
01/05/99 109.09 129.83 118.66 107.08
01/06/99 101.52 133.84 121.29 105.64
01/07/99 105.05 134.14 121.04 105.92
01/08/99 111.11 135.20 121.55 104.04
01/11/99 107.07 137.52 120.48 104.37
01/12/99 111.11 133.83 118.16 102.50
01/13/99 111.11 133.61 117.67 101.01
01/14/99 105.05 131.30 115.55 100.26
01/15/99 111.11 135.42 118.52 100.26
01/19/99 107.07 138.88 119.35 99.91
01/20/99 109.09 139.30 119.79 100.80
01/21/99 113.64 135.22 117.74 100.62
01/22/99 109.09 134.88 116.79 101.31
01/25/99 113.64 136.63 117.63 101.34
01/26/99 111.11 140.33 119.38 99.54
01/27/99 111.11 138.82 118.51 96.91
01/28/99 117.17 142.86 120.62 96.43
01/29/99 129.29 144.51 121.98 94.12
02/01/99 125.25 144.75 121.35 92.58
02/02/99 129.29 142.06 120.30 92.38
02/03/99 123.23 143.79 121.26 93.18
02/04/99 111.11 138.99 119.01 93.11
02/05/99 110.10 136.88 118.15 92.53
02/08/99 113.13 138.69 118.56 94.79
02/09/99 109.09 133.26 115.93 95.19
02/10/99 113.13 133.19 116.64 93.72
02/11/99 117.17 138.72 119.54 91.94
02/12/99 113.13 133.90 117.26 90.63
02/16/99 115.15 133.44 118.38 89.16
02/17/99 113.13 129.69 116.68 87.39
02/18/99 109.09 130.36 117.95 85.66
</TABLE>
<PAGE> 30
Robinson-Humphrey
PROJECT PALMETTO
Indexed Price Comparison - One Year
Daily from September 29, 1998 - September 29, 1999
<TABLE>
<CAPTION>
DATE PALMETTO NASDAQ S&P 500 DIVERSIFIED TEXTILE COMP
<S> <C> <C> <C> <C>
02/19/99 105.05 131.69 118.13 84.53
02/22/99 105.05 135.06 121.27 85.02
02/23/99 109.09 137.04 121.18 81.77
02/24/99 117.17 134.91 119.48 81.69
02/25/99 105.56 134.18 118.68 83.17
02/26/99 113.13 131.95 118.05 82.56
03/01/99 119.19 132.36 117.84 81.51
03/02/99 116.16 130.27 116.82 81.45
03/03/99 109.09 130.63 117.03 80.53
03/04/99 111.11 132.23 118.84 81.14
03/05/99 105.05 134.78 121.59 82.08
03/08/99 107.07 138.27 122.28 82.45
03/09/99 103.03 138.00 122.00 80.44
03/10/99 106.06 138.75 122.67 80.08
03/11/99 108.08 139.11 123.70 79.41
03/12/99 105.05 137.34 123.41 77.37
03/15/99 101.01 140.22 124.62 76.55
03/16/99 96.97 140.67 124.53 78.23
03/17/99 101.01 140.08 123.72 79.76
03/18/99 105.05 142.04 125.50 80.87
03/19/99 101.01 139.63 123.86 80.86
03/22/99 98.99 138.17 123.64 82.39
03/23/99 101.01 133.95 120.32 79.96
03/24/99 97.98 136.40 120.93 81.12
03/25/99 101.01 140.41 122.97 82.51
03/26/99 98.99 139.51 122.29 81.86
03/29/99 97.98 143.76 124.89 83.26
03/30/99 97.47 143.03 124.00 82.08
03/31/99 98.99 141.95 122.63 79.46
04/01/99 96.97 143.79 123.33 80.98
04/05/99 88.89 147.63 125.94 80.74
04/06/99 92.93 147.81 125.63 79.59
04/07/99 92.93 146.73 126.49 81.39
04/08/99 92.93 148.40 128.12 80.70
04/09/99 84.85 149.54 128.53 82.93
04/12/99 85.86 149.87 129.52 82.81
04/13/99 85.86 148.99 128.67 84.00
04/14/99 88.89 144.59 126.64 84.78
04/15/99 84.85 145.43 126.10 87.44
04/16/99 89.90 143.25 125.74 91.73
04/19/99 88.89 135.27 122.92 95.99
04/20/99 88.89 138.96 124.51 94.47
04/21/99 94.95 143.54 127.37 93.96
04/22/99 96.97 147.72 129.53 93.17
04/23/99 95.96 149.40 129.34 93.92
04/26/99 95.96 152.94 129.65 93.54
04/27/99 95.96 150.08 129.91 92.34
04/28/99 94.44 147.08 128.78 91.88
04/29/99 92.93 145.81 128.01 94.74
</TABLE>
<PAGE> 31
Robinson-Humphrey
PROJECT PALMETTO
Indexed Price Comparison - One Year
Daily from September 29, 1998 - September 29, 1999
<TABLE>
<CAPTION>
DATE PALMETTO NASDAQ S&P 500 DIVERSIFIED TEXTILE COMP
<S> <C> <C> <C> <C>
04/30/99 88.89 146.64 127.28 94.58
05/03/99 90.91 146.22 129.13 94.84
05/04/99 89.90 143.31 126.98 96.49
05/05/99 89.90 146.16 128.44 96.16
05/06/99 89.90 142.57 126.98 97.13
05/07/99 90.91 144.38 128.21 98.23
05/10/99 90.91 145.69 127.77 99.08
05/11/99 89.90 148.02 129.23 101.28
05/12/99 89.90 150.32 130.03 100.49
05/13/99 91.92 148.90 130.37 102.82
05/14/99 89.90 145.78 127.53 102.39
05/17/99 89.39 147.74 127.69 100.00
05/18/99 89.90 147.54 127.10 99.09
05/19/99 90.40 148.63 128.14 99.96
05/20/99 91.92 146.61 127.63 101.33
05/21/99 93.94 145.33 126.81 102.15
05/24/99 96.97 141.50 124.56 98.61
05/25/99 95.96 137.30 122.44 97.18
05/26/99 95.96 139.97 124.38 97.36
05/27/99 93.94 139.51 122.15 96.07
05/28/99 95.96 142.47 124.10 97.86
06/01/99 88.89 139.10 123.38 96.96
06/02/99 91.41 140.27 123.43 95.44
06/03/99 88.89 138.60 123.88 97.49
06/04/99 92.93 142.92 126.57 96.42
06/07/99 91.92 145.57 127.22 96.67
06/08/99 88.89 142.70 125.58 96.93
06/09/99 88.89 145.29 125.70 95.20
06/10/99 88.89 143.28 124.19 95.60
06/11/99 90.91 141.17 123.32 94.76
06/14/99 92.93 138.31 123.35 93.64
06/15/99 94.95 139.25 124.04 93.52
06/16/99 90.91 145.20 126.82 93.48
06/17/99 85.86 146.72 127.73 94.20
06/18/99 90.91 147.83 128.01 94.65
06/21/99 89.90 151.68 128.60 96.92
06/22/99 89.90 148.80 127.35 95.82
06/23/99 90.91 149.83 127.08 96.44
06/24/99 90.91 147.28 125.43 95.29
06/25/99 90.91 147.21 125.38 97.26
06/28/99 91.92 150.08 126.91 97.59
06/29/99 91.92 152.37 128.83 99.85
06/30/99 92.93 154.90 130.86 102.62
07/01/99 92.93 156.06 131.64 100.62
07/02/99 91.92 158.07 132.62 99.61
07/06/99 91.92 157.83 132.33 99.19
07/07/99 91.92 158.19 133.06 97.95
07/08/99 91.92 159.85 132.93 97.06
07/09/99 87.88 161.07 133.77 97.16
</TABLE>
<PAGE> 32
Robinson-Humphrey
PROJECT PALMETTO
Indexed Price Comparison - One Year
Daily from September 29, 1998 - September 29, 1999
<TABLE>
<CAPTION>
DATE PALMETTO NASDAQ S&P 500 DIVERSIFIED TEXTILE COMP
<S> <C> <C> <C> <C>
07/12/99 90.91 160.92 133.37 96.94
07/13/99 91.92 160.22 132.84 96.55
07/14/99 93.94 162.52 133.28 97.73
07/15/99 92.93 163.74 134.37 98.30
07/16/99 92.93 165.19 135.25 99.34
07/19/99 93.43 163.22 134.19 98.17
07/20/99 95.45 157.56 131.27 97.34
07/21/99 90.91 159.27 131.48 99.12
07/22/99 90.91 154.81 129.74 96.84
07/23/99 90.91 155.27 129.35 97.13
07/26/99 90.91 151.04 128.48 95.40
07/27/99 96.97 154.51 129.92 94.72
07/28/99 90.91 156.04 130.16 92.94
07/29/99 90.91 152.25 127.84 89.74
07/30/99 92.93 152.16 126.66 88.41
08/02/99 90.91 151.30 126.60 88.49
08/03/99 90.91 149.25 126.04 88.21
08/04/99 94.95 146.48 124.43 85.61
08/05/99 96.97 147.97 125.23 85.96
08/06/99 96.97 146.94 123.95 87.04
08/09/99 94.70 145.27 123.72 86.47
08/10/99 92.93 143.60 122.15 86.39
08/11/99 96.97 147.92 124.11 87.12
08/12/99 94.95 147.03 123.75 87.34
08/13/99 92.93 152.12 126.56 87.89
08/16/99 95.96 152.55 126.86 87.49
08/17/99 91.92 154.05 128.13 87.32
08/18/99 92.93 153.27 127.06 87.48
08/19/99 92.93 151.17 126.17 85.85
08/20/99 90.91 152.73 127.42 85.61
08/23/99 90.91 156.83 129.67 85.11
08/24/99 90.91 158.72 129.98 83.73
08/25/99 92.93 161.79 131.72 83.42
08/26/99 96.97 160.01 129.84 83.35
08/27/99 90.91 159.10 128.53 81.22
08/30/99 90.91 156.44 126.21 79.03
08/31/99 93.94 157.97 125.87 77.26
09/01/99 90.91 158.63 126.89 78.94
09/02/99 93.94 157.68 125.75 76.80
09/03/99 91.92 163.96 129.38 76.84
09/07/99 91.92 163.62 128.73 79.27
09/08/99 89.90 161.98 128.13 78.70
09/09/99 88.89 164.47 128.47 78.93
09/10/99 88.89 166.49 128.85 80.49
09/13/99 88.89 164.05 128.13 79.82
09/14/99 86.87 165.41 127.38 78.31
09/15/99 82.83 162.29 125.64 78.43
09/16/99 85.86 161.86 125.69 76.56
09/17/99 86.87 165.49 127.30 77.47
</TABLE>
<PAGE> 33
Robinson-Humphrey
PROJECT PALMETTO
Indexed Price Comparison - One Year
Daily from September 29, 1998 - September 29, 1999
<TABLE>
<CAPTION>
DATE PALMETTO NASDAQ S&P 500 DIVERSIFIED TEXTILE COMP
<S> <C> <C> <C> <C>
09/20/99 86.87 166.44 127.31 76.90
09/21/99 85.86 162.69 124.65 75.60
09/22/99 88.89 164.83 124.93 72.86
09/23/99 84.85 158.58 122.06 69.87
09/24/99 82.83 158.04 121.77 70.46
09/27/99 82.83 159.27 122.33 70.54
09/28/99 81.82 158.95 122.23 70.25
09/29/99 82.83 157.45 120.91 70.05
</TABLE>
<PAGE> 34
Robinson-Humphrey
PROJECT PALMETTO
Indexed Price Comparison - Two Years
Weekly from October 3, 1997 - September 24, 1999
<TABLE>
<CAPTION>
DATE PALMETTO NASDAQ S&P 500 DIVERSIFIED TEXTILE COMP
<S> <C> <C> <C> <C>
10/03/97 100.00 100.00 100.00 100.00
10/10/97 97.73 101.35 100.20 99.54
10/17/97 95.45 97.14 97.84 95.11
10/24/97 94.32 96.21 97.58 97.20
10/31/97 94.32 92.87 94.78 95.62
11/07/97 90.91 93.39 96.11 95.37
11/14/97 75.00 92.29 96.20 93.42
11/21/97 77.27 94.46 99.80 95.80
11/28/97 73.86 93.28 99.00 94.25
12/05/97 68.18 95.22 101.94 98.80
12/12/97 68.18 89.55 98.79 98.40
12/19/97 67.05 88.86 98.11 97.88
12/26/97 67.05 88.08 97.04 98.08
01/02/98 72.73 92.17 101.04 100.13
01/09/98 68.75 87.61 96.13 97.73
01/16/98 69.32 91.08 99.64 99.11
01/23/98 68.18 91.84 99.23 99.35
01/30/98 67.05 94.38 101.58 100.32
02/06/98 71.59 98.75 104.91 101.57
02/13/98 68.18 99.68 105.71 104.36
02/20/98 68.18 100.71 107.17 99.82
02/27/98 70.45 103.18 108.74 103.67
03/06/98 69.32 102.19 109.39 105.11
03/13/98 72.73 103.25 110.73 107.03
03/20/98 76.14 104.27 113.90 105.97
03/27/98 74.43 106.28 113.51 107.05
04/03/98 75.00 108.13 116.34 110.32
04/09/98 73.86 106.08 115.09 110.57
04/17/98 89.77 108.78 116.34 111.87
04/24/98 82.95 108.92 114.80 113.59
05/01/98 80.68 109.18 116.16 115.69
05/08/98 79.55 108.65 114.83 113.38
05/15/98 78.69 107.63 114.89 109.87
05/22/98 79.55 105.19 115.07 110.33
05/29/98 79.55 103.67 113.03 111.19
06/05/98 77.27 103.91 115.42 110.70
06/12/98 82.39 101.70 113.87 105.59
06/19/98 77.27 103.81 114.05 100.10
06/26/98 75.00 108.96 117.43 98.36
07/02/98 75.00 110.38 118.80 98.43
07/10/98 72.73 113.24 120.65 96.62
07/17/98 71.59 117.07 122.98 100.54
07/24/98 67.05 112.54 118.21 91.98
07/31/98 64.77 109.12 116.13 87.34
08/07/98 61.36 107.63 112.89 84.40
08/14/98 56.82 104.33 110.13 84.08
08/21/98 63.64 104.76 112.04 83.74
08/28/98 56.82 95.56 106.44 76.97
09/04/98 55.68 91.30 100.92 73.31
</TABLE>
<PAGE> 35
<TABLE>
<S> <C> <C> <C> <C>
09/11/98 54.55 95.67 104.56 71.28
09/18/98 51.14 96.96 105.71 73.52
09/25/98 55.68 101.62 108.26 70.12
10/02/98 53.41 94.12 103.89 67.53
10/09/98 51.14 86.98 102.01 60.99
10/16/98 52.84 94.47 109.47 64.72
10/23/98 56.25 98.72 110.95 67.61
10/30/98 53.41 103.24 113.85 68.11
11/06/98 55.11 108.20 118.24 74.00
11/13/98 52.84 107.70 116.65 73.08
11/20/98 55.68 112.38 120.57 72.23
11/27/98 55.68 117.52 123.55 72.53
12/04/98 52.84 116.74 121.94 70.90
12/11/98 50.00 118.27 120.87 69.18
12/18/98 54.55 121.58 123.11 67.39
12/24/98 57.95 126.06 127.07 68.78
12/31/98 53.41 127.79 127.38 75.19
01/08/99 62.50 136.63 132.13 71.83
01/15/99 62.50 136.85 128.83 69.22
01/22/99 61.36 136.31 126.96 69.95
01/29/99 72.73 146.04 132.60 64.99
02/05/99 61.93 138.33 128.43 63.89
02/12/99 63.64 135.32 127.47 62.58
02/19/99 59.09 133.09 128.41 58.36
02/26/99 63.64 133.35 128.32 57.00
03/05/99 59.09 136.21 132.17 56.67
03/12/99 59.09 138.79 134.15 53.42
03/19/99 56.82 141.11 134.64 55.83
03/26/99 55.68 140.99 132.93 56.52
04/01/99 54.55 145.31 134.06 55.91
04/09/99 47.73 151.12 139.72 57.26
04/16/99 50.57 144.77 136.68 63.33
04/23/99 53.98 150.98 140.60 64.84
04/30/99 50.00 148.20 138.36 65.30
05/07/99 51.14 145.91 139.37 67.82
05/14/99 50.57 147.32 138.63 70.70
05/21/99 52.84 146.87 137.85 70.53
05/28/99 53.98 143.98 134.90 67.57
06/04/99 52.27 144.44 137.59 66.57
06/11/99 51.14 142.66 134.05 65.43
06/18/99 51.14 149.40 139.15 65.35
06/25/99 51.14 148.77 136.30 67.15
07/02/99 51.70 159.75 144.16 68.78
07/09/99 49.43 162.78 145.41 67.08
07/16/99 52.27 166.94 147.02 68.58
07/23/99 51.14 156.91 140.61 67.06
07/30/99 52.27 153.77 137.69 61.04
08/06/99 54.55 148.49 134.74 60.10
08/13/99 52.27 153.73 137.58 60.68
08/20/99 51.14 154.34 138.50 59.10
08/27/99 51.14 160.79 139.71 56.08
09/03/99 51.70 165.70 140.64 53.05
09/10/99 50.00 168.26 140.06 55.57
09/17/99 48.86 167.24 138.38 53.49
</TABLE>
<PAGE> 36
<TABLE>
<S> <C> <C> <C> <C>
09/24/99 46.59 159.71 132.36 48.65
</TABLE>
<PAGE> 37
Robinson-Humphrey
PROJECT PALMETTO
Indexed Price Comparison - Since IPO
Monthly from December 31, 1993 - August 31, 1999
<TABLE>
<CAPTION>
DATE PALMETTO NASDAQ S&P 500 DIVERSIFIED TEXTILE COMP
<S> <C> <C> <C> <C>
12/31/93 100.00 100.00 100.00 100.00
01/31/94 103.19 103.05 103.25 95.72
02/28/94 111.70 102.02 100.15 94.25
03/31/94 127.66 95.71 95.57 89.00
04/29/94 121.28 94.47 96.67 92.24
05/31/94 108.51 94.64 97.87 89.61
06/30/94 117.02 90.88 95.24 85.95
07/29/94 108.51 92.97 98.24 89.13
08/31/94 110.64 98.56 101.94 88.34
09/30/94 121.28 98.39 99.19 84.16
10/31/94 125.53 100.09 101.26 82.69
11/30/94 106.38 96.59 97.26 80.65
12/30/94 108.51 96.80 98.46 81.63
01/31/95 112.77 97.22 100.85 82.08
02/28/95 125.53 102.18 104.49 84.74
03/31/95 119.15 105.20 107.34 82.63
04/28/95 117.02 108.65 110.35 83.08
05/31/95 119.15 111.30 114.35 82.18
06/30/95 119.15 120.17 116.79 83.37
07/31/95 119.15 128.89 120.50 88.43
08/31/95 123.40 131.32 120.46 89.23
09/29/95 140.43 134.34 125.29 86.61
10/31/95 153.19 133.38 124.67 80.22
11/30/95 201.06 136.35 129.78 80.84
12/29/95 232.98 135.44 132.05 79.34
01/31/96 229.79 136.43 136.35 78.24
02/29/96 205.85 141.61 137.30 79.22
03/29/96 226.60 141.79 138.39 81.92
04/30/96 201.06 153.26 140.24 84.70
05/31/96 223.40 160.07 143.45 88.26
06/28/96 207.45 152.55 143.77 89.25
07/31/96 194.68 139.11 137.20 85.88
08/30/96 213.83 146.95 139.78 86.69
09/30/96 245.74 157.95 147.35 84.54
10/31/96 272.87 157.25 151.20 89.10
11/29/96 253.72 166.40 162.29 91.33
12/31/96 246.54 166.20 158.80 93.52
01/31/97 241.76 177.63 168.54 95.87
02/28/97 277.66 168.51 169.54 99.40
03/31/97 265.69 157.27 162.32 99.69
04/30/97 260.90 162.30 171.80 100.20
05/30/97 253.72 180.27 181.86 106.59
06/30/97 234.57 185.64 189.76 113.01
07/31/97 232.18 205.18 204.59 115.07
08/29/97 203.46 204.34 192.83 115.88
09/30/97 208.24 217.00 203.08 125.07
10/31/97 198.67 205.15 196.08 119.50
11/28/97 155.59 206.04 204.82 117.80
12/31/97 146.01 202.16 208.05 125.88
</TABLE>
<PAGE> 38
<TABLE>
<S> <C> <C> <C> <C>
01/30/98 141.22 208.47 210.16 125.38
02/27/98 148.40 227.92 224.96 129.57
03/31/98 161.57 236.31 236.20 137.67
04/30/98 167.55 240.53 238.34 142.56
05/29/98 167.55 229.00 233.86 138.97
06/30/98 157.98 243.92 243.08 124.37
07/31/98 136.44 241.04 240.26 109.16
08/31/98 114.89 193.00 205.23 93.61
09/30/98 114.89 218.05 218.03 87.07
10/30/98 112.50 228.04 235.54 85.13
11/30/98 116.09 250.97 249.47 90.14
12/31/98 112.50 282.27 263.53 93.98
01/29/99 153.19 322.59 274.34 81.22
02/26/99 134.04 294.55 265.48 71.24
03/31/99 117.29 316.86 275.78 68.57
04/30/99 105.32 327.35 286.24 81.62
05/28/99 113.70 318.04 279.10 84.45
06/30/99 110.11 345.79 294.29 88.56
07/30/99 110.11 339.66 284.86 76.29
08/31/99 111.30 352.65 283.08 66.67
</TABLE>
<PAGE> 39
Robinson-Humphrey
PROJECT PALMETTO
Analysis of Trading Volume -Latest Three Months
Daily from July 1, 1999 - September 29, 1999
<TABLE>
<CAPTION>
Price Range Actual Volume % Volume Traded
<S> <C> <C>
$4.70 - $4.95 25,300 5.1%
$4.95 - $5.20 20,200 4.0%
$5.20 - $5.45 91,900 18.4%
$5.45 - $5.70 178,100 35.9%
$5.70 - $5.95 147,200 29.5%
$5.95 - $6.20 35,600 7.1%
</TABLE>
<PAGE> 40
Robinson-Humphrey
PROJECT PALMETTO
Analysis of Trading Volume - One Year
Daily from September 29, 1998 - September 29, 1999
<TABLE>
<CAPTION>
Price Range Actual Volume % Volume Traded
<S> <C> <C>
$4.50 - $5.00 25,300 1.0%
$5.00 - $5.50 304,000 12.5%
$5.50 - $6.00 1,166,600 47.9%
$6.00 - $6.50 514,700 21.1%
$6.50 - $7.00 220,100 9.0%
$7.00 - $7.50 160,200 6.6%
$7.50 - $8.00 45,700 1.9%
</TABLE>
<PAGE> 41
ROBINSON-HUMPHREY
PROJECT PALMETTO
OWNERSHIP ANALYSIS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
INSTITUTIONAL OWNERSHIP [1] DATE HOLDINGS OWNERSHIP INSIDER OWNERSHIP [2] DATE HOLDINGS OWNERSHIP
--------------------------- ---- -------- --------- --------------------- ---- -------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
ROYCE & ASSOCIATES, INC. 30-Jun-99 791,475 10.8% J. CARY FINDLAY 22-Sep-99 3,076,033 41.9%
FIDELITY MGMT & RESEARCH CO 30-Jun-99 748,050 10.2% KONSTANCE J.K. FINDLAY 22-Sep-99 212,248 [3] 2.9%
DIMENSIONAL FD ADVISORS, INC. 30-Jun-99 379,600 5.2% ANTONY W. LAUGHTON 22-Sep-99 49,275 0.7%
BRANDYWINE ASSET MGMT, INC. 30-Jun-99 141,325 1.9% JOHN H. MAXHEIM 22-Sep-99 11,494 0.2%
REICH & TANG ASSET MGMT L.P. 30-Jun-99 63,000 0.9% JAMES H. SHAW 22-Sep-99 2,500 0.0%
BARCLAYS BANK PLC 30-Jun-99 61,005 0.8% SARA H. BISSELL 22-Sep-99 2,078 0.0%
REGAL ASSET MANAGEMENT CORP 30-Jun-99 55,000 0.7% LOUIS S. OLTMAN 22-Sep-99 1,300 0.0%
LEGG MASON WOOD WALKER, INC. 30-Jun-99 48,765 0.7% WILLIAM M. STEWART 22-Sep-99 225 0.0%
ROANOKE ASSET MANAGEMENT 31-Dec-98 32,804 0.4%
MELLON PRIVATE ASSET MGMT 30-Jun-99 26,125 0.4%
DAVID L. BABSON & CO, INC. 30-Jun-99 17,000 0.2%
NATIONAL CITY BK OF CLEVELAND 30-Jun-99 13,000 0.2% TOTAL INSIDER HOLDINGS 3,144,845 [4] 42.9%
EQUITABLE COMPANIES INC 30-Jun-99 1,500 0.0%
CREDIT SUISSE FIRST BOSTON COR 30-Jun-99 -- 0.0%
SPEAR, LEEDS & KELLOGG 30-Jun-99 -- 0.0% TOTAL RETAIL HOLDINGS 1,810,683 24.7%
TOTAL INSTITUTIONAL HOLDINGS 2,378,649 32.4% TOTAL SHARES OUTSTANDING 7,334,177 100.0%
</TABLE>
(OWNERSHIP ANALYSIS OF PALMETTO)
(GRAPH CHART)
- --------------------
[1] Institutional ownership figures are from CDA Spectrum as of September 29,
1999.
[2] Insider ownership figures are from the Company's proxy statement dated
September 22, 1999 and exclude options.
[3] Konstance Findlay's shares include 68,500 shares held by the Findlay
Charitable Foundation, 63,020 shares held by the Findlay-Conso Education
Foundation and 78,788 shares that Ms. Findlay holds jointly with her
husband.
[4] Total excludes shares owned jointly by Cary Findlay and his wife Konstance
Findlay.
<PAGE> 42
PROJECT PALMETTO
ANALYSIS OF CHANGES IN PALMETTO INSTITUTIONAL OWNERSHIP
<TABLE>
<CAPTION>
Holdings As Of
-----------------------------------------------------------
Change in Change in
Institutional Owner 30-Jun-98 30-Sep-98 Holdings 31-Dec-98 Holdings
- ----------------------------------- ----------- --------------------- ---------------------
<S> <C> <C> <C> <C> <C>
ROYCE & ASSOCIATES, INC. 623,775 705,775 82,000 726,775 21,000
FIDELITY MGMT & RESEARCH CO 748,050 748,050 - 748,050 -
DIMENSIONAL FD ADVISORS, INC. 215,300 - (215,300) 335,900 335,900
BRANDYWINE ASSET MGMT, INC. 73,925 102,825 28,900 117,925 15,100
REICH & TANG ASSET MGMT L.P. 56,500 67,500 11,000 80,000 12,500
BARCLAYS BANK PLC 88,321 88,321 - 86,321 (2,000)
REGAL ASSET MANAGEMENT CORP - - - 35,000 35,000
LEGG MASON WOOD WALKER, INC. 32,625 32,425 (200) 53,090 20,665
MELLON PRIVATE ASSET MGMT 26,125 26,125 - 26,125 -
DAVID L. BABSON & CO, INC. 17,000 17,000 - 17,000 -
NATIONAL CITY BK OF CLEVELAND - 10,200 10,200 11,200 1,000
EQUITABLE COMPANIES INC - 1,000 1,000 3,000 2,000
BANKERS TRUST N Y CORP 150 - (150) - -
BEAR, STEARNS & CO. INC. 42,800 67,200 24,400 37,400 (29,800)
CITIGROUP INC 71,707 32,807 (38,900) 36,153 3,346
CREDIT SUISSE FIRST BOSTON COR - - - 102,000 102,000
NEUBERGER BERMAN 24,000 24,000 - - (24,000)
PALOMA SECURITIES, L.L.C. 60,000 - (60,000) - -
ROANOKE ASSET MGMT 47,889 38,019 (9,870) 32,804 (5,215)
SPEAR, LEEDS & KELLOGG - - - - -
----------- --------------------- ---------------------
TOTAL 2,128,167 1,961,247 (166,920) 2,448,743 487,496
=========== ===================== =====================
<CAPTION>
Holdings As Of
---------------------------------------------
Cumulative
Change in Change in Change
Institutional Owner 31-Mar-99 Holdings 30-Jun-99 Holdings Since 6-30-98
- ----------------------------------- --------------------- ---------------------- -------------
<S> <C> <C> <C> <C> <C>
ROYCE & ASSOCIATES, INC. 791,475 64,700 791,475 - 167,700
FIDELITY MGMT & RESEARCH CO 748,050 - 748,050 - -
DIMENSIONAL FD ADVISORS, INC. 362,100 26,200 379,600 17,500 164,300
BRANDYWINE ASSET MGMT, INC. 128,425 10,500 141,325 12,900 67,400
REICH & TANG ASSET MGMT L.P. 78,000 (2,000) 63,000 (15,000) 6,500
BARCLAYS BANK PLC 87,858 1,537 61,005 (26,853) (27,316)
REGAL ASSET MANAGEMENT CORP 55,000 20,000 55,000 - 55,000
LEGG MASON WOOD WALKER, INC. 53,655 565 48,765 (4,890) 16,140
MELLON PRIVATE ASSET MGMT 26,125 - 26,125 - -
DAVID L. BABSON & CO, INC. 17,000 - 17,000 - -
NATIONAL CITY BK OF CLEVELAND 11,200 - 13,000 1,800 13,000
EQUITABLE COMPANIES INC 4,500 1,500 1,500 (3,000) 1,500
BANKERS TRUST N Y CORP - - - - (150)
BEAR, STEARNS & CO. INC. - (37,400) - - (42,800)
CITIGROUP INC - (36,153) - - (71,707)
CREDIT SUISSE FIRST BOSTON COR 102,000 - - (102,000) -
NEUBERGER BERMAN - - - - (24,000)
PALOMA SECURITIES, L.L.C. - - - - (60,000)
ROANOKE ASSET MGMT - (32,804) - - (47,889)
SPEAR, LEEDS & KELLOGG 19,600 19,600 - (19,600) -
--------------------- --------------------- -----------
TOTAL 2,484,988 36,245 2,345,845 (139,143) 217,678
===================== ===================== ===========
</TABLE>
- -----------------------------------
Source: CDA Spectrum as of September 29, 1999.
<PAGE> 43
ROBINSON-HUMPHREY
PROJECT PALMETTO
MARKET COMPARISON OF SELECTED PUBLIC COMPANIES
<TABLE>
<CAPTION>
52 WEEK MARKET
LATEST ------- PRICE % OF
TICKER EXCHANGE COMPANY FYE FILING HIGH LOW 09/29/99 HIGH
- ------ -------- ------- --- ------ ---- --- -------- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Diversified Textile Companies
BUR NYSE Burlington Industries, Inc. SP 06/99 $11.12 $4.37 $4.50 40.5%
CKC NYSE Collins & Aikman Corp. DC 06/99 $7.62 $3.93 $5.75 75.5%
COE NYSE Cone Mills Corp. DC 06/99 $7.18 $3.81 $4.88 67.9%
CRW NYSE Crown Crafts, Inc. MR 06/99 $8.25 $3.12 $3.13 37.9%
DRF NYSE Dan River, Inc. DC 06/99 $11.75 $6.18 $6.44 54.8%
DLW NYSE Delta Woodside Ind. JE 03/99 $7.37 $2.75 $3.06 41.6%
DXYN OTC Dixie Group, Inc. DC 06/99 $9.75 $4.00 $7.38 75.6%
FIT AMEX Fab Industries, Inc. NV 05/99 $23.62 $12.56 $12.75 54.0%
GFD NYSE Guilford Mills, Inc. SP 06/99 $18.00 $8.12 $8.75 48.6%
PTX NYSE Pillowtex Corp. DC 06/99 $35.25 $6.81 $8.06 22.9%
SMI NYSE Springs Industries, Inc. DC 06/99 $44.50 $27.06 $33.69 75.7%
UFI NYSE Unifi Inc. JE 06/99 $21.31 $10.56 $10.75 50.4%
WPSN OTC WestPoint Stevens, Inc. DC 06/99 $37.56 $22.25 $23.94 63.7%
AVERAGE 54.5%
OTC Palmetto JE 06/99 $8.62 $5.00 $5.13 59.5%
<CAPTION>
EARNINGS PER SHARE [1] PRICE/EARNINGS RATIO
------------------------------- EST. 5 YR ------------------------------
CAL. CAL. GROWTH CAL. CAL. SHARES MARKET BOOK MARKET/
TICKER LTM 1999 2000 RATE LTM 1999 2000 OUTSTANDING CAP'N VALUE BOOK
- ------ --- ---- ---- ---- --- ---- ---- ----------- ----- ----- ----
(MM) ($MM) ($MM)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Diversified Textile Companies
BUR $0.77 $0.36 $0.78 F 8.0% 5.8 x 12.5 x 5.8 x 52.91 $238.1 $630.9 0.4 x
CKC 0.00 0.25 0.50 14.0% NM 23.0 11.5 61.95 356.2 (143.4) NM
COE (0.01) (0.31) (0.02) 5.0% NM NM NM 25.49 124.2 171.8 0.7
CRW (0.79) (0.72) 0.37 11.0% NM NM 8.4 8.61 26.9 82.6 0.3
DRF 0.63 0.64 1.10 15.0% 10.2 10.1 5.9 23.39 150.6 265.3 0.6
DLW (0.70) 0.03 0.76 F 5.0% NM 102.1 * 4.0 23.72 72.6 171.7 0.4
DXYN 0.87 1.01 1.19 16.0% 8.5 7.3 6.2 11.41 84.2 111.2 0.8
FIT 0.39 NA NA NA 37.7 * NA NA 5.41 68.9 132.3 0.5
GFD 0.72 0.56 0.92 F 3.0% 12.2 15.6 9.5 22.19 194.1 369.0 0.5
PTX 2.47 1.44 2.14 15.0% 3.3 * 5.6 3.8 14.18 114.4 247.6 0.5
SMI 3.12 3.40 3.73 8.0% 10.8 9.9 9.0 17.88 602.2 744.0 0.8
UFI 1.13 0.67 1.03 15.0% 9.5 16.0 10.4 59.55 640.1 646.1 1.0
WPSN 1.67 1.87 2.23 20.0% 14.3 12.8 10.7 55.68 1,332.8 (479.2) NM
AVERAGE 11.3% 10.2 x 12.5 x 7.8 x 0.6 x
OTC $0.78 $0.78 $1.00 10.0% 6.6 x 6.6 x 5.1 x 7.33 $37.6 $47.8 0.8 x
</TABLE>
- ---------------------------------------------
NA - Not Available NM - Not Meaningful * - Excluded from average F - Fiscal
Year End Estimate
[1] All earnings estimates are from the First Call Research Network dated
September 29, 1999, except for WPSN, which is from Robinson-Humphrey
Research.
<PAGE> 44
ROBINSON-HUMPHREY
PROJECT PALMETTO
MARKET COMPARISON OF SELECTED PUBLIC COMPANIES
<TABLE>
<CAPTION>
LTM
TOTAL TOTAL TOTAL ------------------------------------ OPERATING
COMPANY DEBT CASH FIRM VALUE [1] REVENUES OP. INC. EBITDA MARGIN
- ------- ---- ---- -------------- -------- -------- ------ ------
($MM) ($MM) ($MM) ($MM) ($MM) ($MM)
<S> <C> <C> <C> <C> <C> <C> <C>
Diversified Textile Companies
Burlington Industries, Inc. $870.6 $41.0 $1,067.7 $1,745.4 $80.1 [2] $165.5 [2] 4.6%
Collins & Aikman Corp. 947.4 44.0 1,259.6 1,849.2 105.1 [3] 173.2 [3] 5.7%
Cone Mills Corp. 182.3 4.0 302.6 672.9 4.6 [4] 33.8 [4] 0.7%
Crown Crafts, Inc. 134.5 1.2 160.2 366.2 (6.1) 6.7 -1.7% *
Dan River, Inc. 324.0 4.9 469.7 601.5 42.0 78.7 7.0%
Delta Woodside Ind. 177.1 4.1 245.7 503.8 28.8 48.9 5.7%
Dixie Group, Inc. 149.3 2.7 230.8 540.7 28.4 52.8 5.2%
Fab Industries, Inc. 0.4 50.6 18.8 143.9 (1.9) 4.3 -1.4% *
Guilford Mills, Inc. 244.9 13.1 426.0 871.0 43.2 [5] 108.2 [5] 5.0%
Pillowtex Corp. 1,036.3 9.0 1,141.6 1,542.4 146.2 [6] 200.6 [6] 9.5%
Springs Industries, Inc. 342.6 0.7 944.2 2,215.6 127.8 [7] 221.0 [7] 5.8%
Unifi Inc. 495.2 44.4 1,090.9 1,251.2 119.2 209.1 9.5%
WestPoint Stevens, Inc. 1,403.3 0.2 2,735.9 1,838.3 257.0 350.5 14.0%
AVERAGE 6.1%
Palmetto $42.3 $1.7 $78.2 $119.7 $13.1 $17.1 11.0%
<CAPTION>
3 YEAR CAGR
FIRM VALUE TO: ----------------------
EBITDA ------------------------------- NET
COMPANY MARGIN REVENUES OP. INC. EBITDA REVENUE INCOME
- ------- ------ -------- -------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C>
Diversified Textile Companies
Burlington Industries, Inc. 9.5% 0.61% 13.3 x 6.5 x (4.0%) 39.1%
Collins & Aikman Corp. 9.4% 0.68 12.0 7.3 31.6% NM
Cone Mills Corp. 5.0% 0.45 66.3 * 9.0 (1.2%) NM
Crown Crafts, Inc. 1.8% * 0.44 NM 24.1 * 18.8% NM
Dan River, Inc. 13.1% 0.78 11.2 6.0 16.8% 71.4% *
Delta Woodside Ind. 9.7% 0.49 8.5 5.0 4.8% NM
Dixie Group, Inc. 9.8% 0.43 8.1 4.4 16.9% 26.4%
Fab Industries, Inc. 3.0% 0.13 NM 4.4 (1.5%) (17.3%)
Guilford Mills, Inc. 12.4% 0.49 9.9 3.9 3.8% 4.4%
Pillowtex Corp. 13.0% 0.74 7.8 5.7 75.4% * 72.4% *
Springs Industries, Inc. 10.0% 0.43 7.4 4.3 (0.9%) (28.0%)
Unifi Inc. 16.7% 0.87 9.2 5.2 (14.3%) (26.8%)
WestPoint Stevens, Inc. 19.1% 1.49 10.6 7.8 8.8% 25.0%
AVERAGE 10.9% 0.62 x 9.8 x 5.8 x 6.6% 3.2%
Palmetto 14.3% 0.65 x 6.0 x 4.6 x 27.6% (9.4%)
</TABLE>
- ------------------------------------
NA - Not Available NM - Not Meaningful * - excluded from average
[1] Firm value is equal to market capitalization plus debt minus cash.
[2] Excludes $65.3 million restructuring charge.
[3] Excludes $4.6 million restructuring charge.
[4] Excludes $30.0 million in charges for restructuring and impairment of
assets.
[5] Excludes $6.5 million restructuring charge.
[6] Excludes $1.5 million restructuring charge.
[7] Excludes $21.5 million in non-recurring charges.
<PAGE> 45
ROBINSON-HUMPHREY
PROJECT PALMETTO
MARKET COMPARISON OF SELECTED LIMITED SIZE COMPARABLE PUBLIC COMPANIES [1]
<TABLE>
<CAPTION>
EARNINGS PER SHARE [2]
52 WEEK MARKET -------------------------
LATEST ------- PRICE % OF CAL. CAL.
TICKER EXCHANGE COMPANY FYE FILING HIGH LOW 10/5/99 HIGH LTM 1999 2000
- ------ -------- ------- --- ------ ---- --- ------- ---- --- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Limited Size Textile Companies
COE NYSE Cone Mills Corp. DC 06/99 $7.18 $3.81 $4.88 67.9% ($0.01) ($0.31) ($0.02)
CRW NYSE Crown Crafts, Inc. MR 06/99 $8.25 $3.12 $3.13 37.9% (0.79) (0.72) 0.37
DRF NYSE Dan River, Inc. DC 06/99 $11.75 $6.18 $6.44 54.8% 0.63 0.64 1.10
DLW NYSE Delta Woodside Ind. JE 03/99 $7.37 $2.75 $3.06 41.6% (0.70) (0.03) 0.76 F
DXYN OTC Dixie Group, Inc. DC 06/99 $9.75 $4.00 $7.38 75.6% 0.87 1.01 1.19 F
FIT AMEX Fab Industries, Inc. NV 05/99 $23.62 $12.56 $12.75 54.0% 0.39 NA NA
GFD NYSE Guilford Mills, Inc. SP 06/99 $18.00 $8.12 $8.75 48.6% 0.72 0.56 0.92 F
AVERAGE 54.3%
OTC Palmetto JE 06/99 $8.62 $5.00 $5.13 59.5% $0.78 $0.78 $1.00
<CAPTION>
PRICE/EARNINGS RATIO
EST. 5YR -------------------------
GROWTH CAL. CAL. SHARES MARKET BOOK MARKET/
TICKER COMPANY RATE LTM 1999 2000 OUTSTANDING CAP'N VALUE BOOK
- ------ ------- ---- --- ---- ---- ----------- ----- ----- ----
(MM) ($MM) ($MM)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Limited Size Textile Companies
COE 6.0% NM x NM x NM x 25.49 $124.2 $171.8 0.7 x
CRW 11.0% NM NM 8.4 8.61 26.9 82.6 0.3
DRF 15.0% 10.2 10.1 5.9 23.39 150.6 265.3 0.6
DLW 5.0% NM 102.1 * 4.0 23.72 72.6 171.7 0.4
DXYN 16.0% 8.5 7.3 6.2 11.41 84.2 111.2 0.8
FIT NA 37.7 * NA NA 5.41 68.9 132.3 0.5
GFD 3.0% 12.2 15.6 9.5 22.19 194.1 369.0 0.5
AVERAGE 9.3% 10.3 x 11.0 x 6.8 x 0.5 x
OTC Palmetto 10.0% 6.6 x 6.6 x 5.1 x 7.33 $37.6 $47.8 0.8 x
</TABLE>
- ----------------------------------
NA - Not Available NM - Not Meaningful * - Excluded from average F - Fiscal
Year End Estimate
[1] All companies from the universe of comparable diversified textile companies
with revenues and firm values less than $1.0 billion.
[2] All earnings estimates are from the First Call Research Network dated
September 29, 1999, except for WPSN, which is from Robinson-Humphrey
Research.
<PAGE> 46
ROBINSON-HUMPHREY
PROJECT PALMETTO
MARKET COMPARISON OF SELECTED LIMITED SIZE COMPARABLE PUBLIC COMPANIES
<TABLE>
<CAPTION>
LTM
TOTAL TOTAL TOTAL ------------------------------------ OPERATING
COMPANY DEBT CASH FIRM VALUE [1] REVENUES OP. INC. EBITDA MARGIN
- ------- ---- ---- -------------- -------- -------- ------ ------
($MM) ($MM) ($MM) ($MM) ($MM) ($MM)
<S> <C> <C> <C> <C> <C> <C> <C>
Limited Size Textile Companies
Cone Mills Corp. $182.3 $4.0 $302.6 $672.9 $4.6 [2] $33.8 [2] 0.7%
Crown Crafts, Inc. 134.5 1.2 160.2 366.2 (6.1) 6.7 -1.7% *
Dan River, Inc. 324.0 4.9 469.7 601.5 42.0 78.7 7.0%
Delta Woodside Ind. 177.1 4.1 245.7 503.8 28.8 48.9 5.7%
Dixie Group, Inc. 149.3 2.7 230.8 540.7 28.4 52.8 5.2%
Fab Industries, Inc. 0.4 50.6 18.8 143.9 (1.9) 4.3 -1.4% *
Guilford Mills, Inc. 244.9 13.1 426.0 871.0 43.2 [3] 108.2 [3] 5.0%
AVERAGE 4.7%
Palmetto $42.3 $1.7 $78.2 $119.7 $13.1 $17.1 11.0%
<CAPTION>
3 YEAR CAGR
FIRM VALUE TO: -----------------------
EBITDA -------------------------------- NET
COMPANY MARGIN REVENUES OP. INC. EBITDA REVENUE INCOME
- ------- ------ -------- -------- ------ ------- ------
<S> <C> <C> <C> <C> <C> <C>
Limited Size Textile Companies
Cone Mills Corp. 5.0% 0.45 66.3 x* 9.6 -1.2% NM
Crown Crafts, Inc. 1.8% * 0.44 NM 24.1 * 18.8% NM
Dan River, Inc. 13.1% 0.78 11.2 6.0 16.8% 71.4% *
Delta Woodside Ind. 9.7% 0.49 8.5 5.0 4.8% NM
Dixie Group, Inc. 9.8% 0.43 8.1 4.4 16.9% 26.4%
Fab Industries, Inc. 3.0% 0.13 NM 4.4 (1.5%) (17.3%)
Guilford Mills, Inc. 12.4% 0.49 9.9 3.9 3.8% 4.4%
AVERAGE 8.8% 0.46 x 9.4 x 5.4 x 8.3% 4.5%
Palmetto 14.3% 0.65 x 6.0 x 4.6 x 27.6% (9.4%)
</TABLE>
- ----------------------------------------------
NA - Not Available NM - Not Meaningful * - excluded from average
[1] Firm value is equal to market capitalization plus debt minus cash.
[2] Excludes $30.0 million in charges for restructuring and impairment of
assets.
[3] Excludes $6.5 million restructuring charge.
<PAGE> 47
ROBINSON-HUMPHREY
PROJECT PALMETTO
IMPLIED VALUATION USING SELECTED DIVERSIFIED TEXTILE COMPANIES
($ IN THOUSANDS)
<TABLE>
<CAPTION>
AVERAGE MULTIPLE
--------------------------------------------------------------
PALMETTO IMPORTANCE PRICE/ PRICE/ MARKET/
VALUATION PARAMETER VALUE WEIGHTING 1999 EPS 2000 EPS BOOK
- ---------------------------------- --------- ----------- --------- --------- -------
<S> <C> <C> <C> <C> <C>
Fiscal 1999 Net Income $ 5,762 20.0% 12.5 x
Est. Fiscal 2000 Net Income [1] 8,628 10.0% 7.8 x
Book Value [2] 47,802 10.0% 0.6 x
<CAPTION>
AVERAGE MULTIPLE
-------------------------------------------------------------
PALMETTO IMPORTANCE FIRM VALUE [3]/ FIRM VALUE [3]/ FIRM VALUE [3]/
VALUATION PARAMETER VALUE WEIGHTING LTM REVENUES LTM EBITDA LTM EBIT
- ---------------------------------- -------- ----------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Fiscal 1999 Revenues $119,660 20.0% 0.62 x
Fiscal 1999 EBITDA 17,118 20.0% 5.8 x
Fiscal 1999 EBIT 13,124 20.0% 9.8 x
<CAPTION>
IMPLIED IMPLIED
EQUITY EQUITY VALUE
VALUATION PARAMETER VALUE PER SHARE [5]
---------------------------------- ----- -------------
<S> <C> <C>
Fiscal 1999 Net Income $72,242 $9.81
Est. Fiscal 2000 Net Income [1] $66,887 $9.08
Book Value [2] $28,173 $3.83
<CAPTION>
LESS
VALUATION PARAMETER NET DEBT [2,4]
---------------------------------- --------------
<S> <C> <C> <C>
Fiscal 1999 Revenues $40,622 $33,210 $4.51
Fiscal 1999 EBITDA $40,622 $58,289 $7.92
Fiscal 1999 EBIT $40,622 $87,982 $11.95
WEIGHTED AVERAGE: $59,851 $8.13
UNWEIGHTED AVERAGE: $57,797 $7.85
</TABLE>
----------------------------------
[1] Projections provided by the Company.
[2] Balance sheet data as of July 3, 1999.
[3] Firm value equals market capitalization plus total debt and preferred stock
minus cash and marketable securities.
[4] Net debt equals debt plus preferred stock less cash and marketable
securities.
[5] Based on 7,363,026 diluted shares outstanding as of September 15, 1999.
<PAGE> 48
ROBINSON-HUMPHREY
PROJECT PALMETTO
IMPLIED VALUATION USING SELECTED LIMITED SIZE DIVERSIFIED TEXTILE COMPANIES[1]
($ IN THOUSANDS)
<TABLE>
<CAPTION>
AVERAGE MULTIPLE
------------------------------------------------
PALMETTO IMPORTANCE PRICE/ PRICE/ MARKET/
VALUATION PARAMETER VALUE WEIGHTING 1999 EPS 2000 EPS BOOK
- -------------------------------- -------- --------- ---------- --------- -------
<S> <C> <C> <C> <C> <C>
Fiscal 1999 Net Income $ 5,762 20.0% 11.0 x
Est. Fiscal 2000 Net Income [2] 8,628 10.0% 6.8 x
Book Value [3] 47,802 10.0% 0.5 x
<CAPTION>
AVERAGE MULTIPLE
----------------------------------------------------
PALMETTO IMPORTANCE FIRM VALUE [4]/ FIRM VALUE [4]/ FIRM VALUE [4]/
VALUATION PARAMETER VALUE WEIGHTING LTM REVENUES LTM EBITDA LTM EBIT
- -------------------------------- -------- --------- --------------- --------------- ---------------
<S> <C> <C> <C> <C> <C>
Fiscal 1999 Revenues $119,660 20.0% 0.46 x
Fiscal 1999 EBITDA 17,118 20.0% 5.4 x
Fiscal 1999 EBIT 13,124 20.0% 9.4 x
<CAPTION>
IMPLIED IMPLIED
EQUITY EQUITY VALUE
VALUATION PARAMETER VALUE PER SHARE [6]
- -------------------------------- ----- -------------
<S> <C> <C>
Fiscal 1999 Net Income $63,354 $8.60
Est. Fiscal 2000 Net Income [2] $58,733 $7.98
Book Value [3] $26,248 $3.56
<CAPTION>
LESS
VALUATION PARAMETER NET DEBT [3,5]
- ------------------------------- --------------
<S> <C> <C> <C>
Fiscal 1999 Revenues $40,622 $14,113 $1.92
Fiscal 1999 EBITDA $40,622 $52,468 $7.13
Fiscal 1999 EBIT $40,622 $83,048 $11.28
WEIGHTED AVERAGE: $51,095 $6.94
UNWEIGHTED AVERAGE: $49,661 $6.74
</TABLE>
- -----------------------------
[1] All companies from the universe of comparable diversified textile companies
with revenues and firm values less than $1.0 billion.
[2] Projections provided by the Company.
[3] Balance sheet data as of July 3, 1999.
[4] Firm value equals market capitalization plus total debt and preferred stock
minus cash and marketable securities.
[5] Net debt equals debt plus preferred stock less cash and marketable
securities.
[6] Based on 7,363,026 diluted shares outstanding as of September 15, 1999.
<PAGE> 49
Robinson-Humphrey
PROJECT PALMETTO
TRANSACTION MULTIPLE ANALYSIS FOR SELECTED MERGERS AND ACQUISITIONS
IN THE TEXTILE INDUSTRY
<TABLE>
<CAPTION>
DATE
EFFECTIVE TARGET NAME TARGET BUSINESS DESCRIPTION ACQUIROR NAME
- --------- ----------- --------------------------- -------------
<S> <C> <C> <C>
09/13/99 Johnston Industries Inc Manufacture woven industrial textile products Jerry Zucker
08/30/99 JPS Ind-Mnfr Plant,Tennessee Manufacture cotton fabrics Chiquola Fabrics LLC
08/09/99 Burlington Inds Inc-Dyeing Manufacture wholesale dyeing,finishing products Riverplace LLC
08/02/99 Marino Technologies Inc Manufacture polypropylene products Consoltex Group Inc
07/26/99 JPS Inds-Spun Yarn Mnfg Plant Manufacture yarn Belding Hausman Inc
06/28/99 Monterey Carpets Finishers of textiles Collins & Aikman
03/04/99 JPS Converter-Home Furnishings Manufacture home furnishings Belding Hausman Inc
02/26/99 Ex-Cell Home Fashions, Inc. Manufacture bed, bath furnishings Glenoit Corp
02/18/99 Cookson Fibers Produce specialist fibre products Quad-C Inc
01/31/99 Rhodia-Textiles Chemicals Bus Manufacture textiles Eastman Chemical Co
01/19/99 Regal Rugs Inc(Readicut) Manufacture rugs Springs Industries Inc
01/11/99 Multitex Corp of America Inc Manufacture floorcoverings Dixie Group Inc
02/03/98 Artee Industries Inc Manufacture spun yarn Culp Inc
01/23/98 Pillowtex Corp-Finishing Div Manufacture woven fabrics Color-Tex International
12/22/97 Fieldcrest Cannon Inc Manufacture broadwoven fabrics Pillowtex Corp
12/01/97 Elastic Corp of America(NFA) Whl covered elastic fabrics Worldtex Inc
10/06/97 General Felt Inds-Needlepunch Manufacture carpets,artificial grass Bretlin Inc (Dixie Group
Inc)
08/27/97 Alamac Knit Fabrics Inc Manufacture knit fabric Dyersburg Corp
08/07/97 Phillips Industries, Inc. Manufacture upholstery fabrics Culp, Inc.
08/01/97 Texfi Industries Inc Manufacture textiles Polysindo Hong Kong Ltd
04/25/97 Collins & Aikman (Decorative Fabrics Unit) Manufacture decorative fabrics Joan Fabrics Corp.
12/11/96 Foamex (JPS Automotive Products) [2] Manufacture automotive carpets Collins & Aikman
08/01/96 Perfect Fit Inds (Foamex LP) Manufacture housefurnishings PFI Acquisition Corp
07/12/96 Belding Hausman Inc Manufacture home furnishings Lewis Textiles Corp
04/29/96 Triarc Companies (Graniteville Div.) Textile manufacturer Avondale Mills Inc.
04/17/96 Clark-Schwebel Inc Manufacture fiberglass fabrics Investor Group
01/23/96 Cone Mills-Certain Olympic Manufacture rubber,foam products British Vita PLC
11/17/95 JPS Textile Group-Carpet Unit Manufacture carpets Gulistan Holdings Inc
08/05/95 Tolaram Fibers Inc Manufacture finished fibers Camac Corp (Cookson
America)
07/03/95 Pharr Yarns of Georgia Inc Manufacture yarn Image Industries Inc
05/31/95 Dawson Home Fashions Manufacture retail draperies Springs Industries Inc
05/29/95 Dundee Mills, Inc. Manufacture cotton towels, bedding & apparel Springs Industries, Inc.
04/03/95 Texfi Indus-Greige Goods Ops Manufacture unfinished textile goods Investor Group
02/01/95 Custom Coating & Laminating Manufacture coated fabrics Furon Co Inc
12/08/94 Golding Industries Inc-Raytex Manufacture wide fabrics Cone Mills Corp
12/01/94 Beacon Manufacturing Co. Manufacture cotton, synthetic blankets Pillowtex Corp.
11/18/94 Cerex Advanced Fabrics Manufacture nylon products Investor Group
06/30/94 Danfield Threads Inc, Bridge Manufacture thread;own,op bldgs Belding Heminway Co Inc
06/28/94 JPS Automotive Products Corp. Manufacture automotive carpets Foamex International,
Inc.
06/16/94 Revman Industries Manufacture housefurnishing Aeon Group
05/24/94 Acustar-Automotive Soft Trim Manufacture fabric,leather covers Johnson Controls Inc
04/29/94 Burlington Ind. (Decorative Prints) Manufacture fabrics for home use Galey & Lord Industries,
Inc.
03/23/94 United Merchants-Uniblend Yarn Manufacture yarn Investor Group
03/04/94 Carleton Woolen Mills Inc Manufacture wool,wool products Allied Textile Cos PLC
01/19/94 United Knitting Inc Manufacture sportswear fabrics Dyersburg Corp
12/15/93 United Merchants & Mnfr-Mill Manufacture millwork products UDPW Acquisition Corp
12/10/93 West Point-Pepperell Inc Manufacture apparel,fabrics Valley Fashions Corp
12/02/93 Amoskeag Company Manufacture of home furnishing textile products Fieldcrest Cannon, Inc.
11/19/93 Perfect Fit Industries, Inc. Manufacture house furnishings Foamex L.P.
11/18/93 Belding Heminway Co Inc Manufacture textile treads,accessory Noel Group Inc
11/12/93 Rossville Companies, Inc. Manufacture broadwoven fabrics Culp, Inc.
<CAPTION>
EQUITY VALUE AS A MULTIPLE OF:
------------------------------ FIRM VALUE AS A MULTIPLE OF LTM:
DATE TRANSACTION BOOK NET TRANSACTION --------------------------------
EFFECTIVE EQUITY VALUE VALUE INCOME FIRM VALUE [1] REVENUES EBITDA EBIT
- --------- ------------ ----- ------ -------------- -------- ------ ----
($MM) ($MM)
<S> <C> <C> <C> <C> <C> <C> <C>
09/13/99 $25.5 0.5 x* NM $150.5 0.56 x 4.9 x 16.5 x
08/30/99
08/09/99
08/02/99
07/26/99
06/28/99
03/04/99
02/26/99
02/18/99
01/31/99
01/19/99 30.0 -- -- -- -- -- --
01/11/99 30.4 -- -- -- -- -- --
02/03/98
01/23/98
12/22/97 468.2 2.1 55.3 * 787.2 0.72 11.8 26.0 *
12/01/97
10/06/97
08/27/97
08/07/97 36.5 -- -- 46.6 0.88 7.6 NA
08/01/97 53.1 NM -- 142.5 0.68 9.2 15.0
04/25/97 310.0 2.1 -- 310.0 1.05 6.4 8.2
12/11/96 26.0 -- -- 220.0 0.70 5.0 7.1
08/01/96
07/12/96
04/29/96 255.0 -- -- -- -- -- --
04/17/96
01/23/96
11/17/95
08/05/95
07/03/95
05/31/95
05/29/95 118.0 1.0 NM 143.5 0.53 9.8 40.7 *
04/03/95
02/01/95
12/08/94
12/01/94 100.7 2.3 48.7 * 111.7 0.97 10.1 15.7
11/18/94
06/30/94
06/28/94 264.0 3.1 -- 296.0 1.00 8.5 11.1
06/16/94
05/24/94
04/29/94 64.7 2.7 -- 64.7 0.99 6.4 7.2
03/23/94
03/04/94
01/19/94
12/15/93
12/10/93 1,358.7 1.5 11.5 1,638.1 1.12 11.0 486.9 *
12/02/93 137.6 1.2 21.2 540.1 0.54 5.7 9.0
11/19/93 20.7 1.0 -- 69.1 0.79 10.0 17.2 *
11/18/93 58.1 1.2 25.1 87.8 0.62 9.2 12.5
11/12/93 38.0 5.6 * -- 49.9 0.87 11.3 18.1 *
</TABLE>
<PAGE> 50
PROJECT PALMETTO
TRANSACTION MULTIPLE ANALYSIS FOR SELECTED MERGERS AND ACQUISITIONS
IN THE TEXTILE INDUSTRY
<TABLE>
<CAPTION>
DATE
EFFECTIVE TARGET NAME TARGET BUSINESS DESCRIPTION ACQUIROR NAME
- --------- ----------- --------------------------- -------------
<S> <C> <C> <C>
09/09/93 Tennessee Woolen Mills Inc Manufacture cotton Pillowtex Corp
09/02/93 Hanes Holding Company Manufacture fabrics & textiles Leggett & Platt, Inc.
08/18/93 Pioneer Yarns Mills, Inc. [3] Manufacture yarn Unifi, Inc.
08/02/93 Fieldcrest Cannon Inc-Carpet Manufacture carpets and rugs Mohawk Industries Inc
07/08/93 Goldtex Inc Finished woven, knitted fabric Tomen America Inc. (Tomen Corp)
06/30/93 LaSalle-Deitch Co (Sutton Corp) Manufacture and whl floor coverings Heywood Williams Group PLC
04/23/93 Vintage Yarns, Inc. Manufacture cotton, fiber yarn Unifi, Inc.
03/12/93 Carriage Industries, Inc. Textile and apparel products Dixie Yarns, Inc.
01/05/93 Mount Vernon Mills-Paper Mach Manufacture drying fabrics Albany International Corp
12/31/92 IGH Inc(BBA Group Inc) Manufacture proprietary textiles BBA Group PLC
11/19/92 West Point-Pepper-Cust Fabrics Manufacture textiles Jupiter National Inc
08/25/92 Wayn-Tex Inc Manufacture manmade woven fabrics Investor Group
03/02/92 Texfi Industries-2 Yarn Mills Manufacture yarn products Mayo Yarns Inc
08/08/91 Macfield, Inc. Manufacture textured nylon yarns & dyed yarns Unifi, Inc.
Historical Transactions
- -----------------------
01/14/97 Collins & Aikman
Corporation Manufacture floor & wall coverings Wickes Companies, Inc.
<CAPTION>
EQUITY VALUE
AS A MULTIPLE OF:
--------------------- FIRM VALUE AS A MULTIPLE OF LTM:
DATE TRANSACTION BOOK NET TRANSACTION --------------------------------
EFFECTIVE EQUITY VALUE VALUE INCOME FIRM VALUE [1] REVENUES EBITDA EBIT
--------- ------------ ----- ------ -------------- -------- ------ ----
($MM) ($MM)
<S> <C> <C> <C> <C> <C> <C> <C>
09/09/93
09/02/93 63.2 4.5 * 21.3 128.4 0.90 6.6 8.4
08/18/93 74.1 3.8 8.7 92.4 1.26 -- 6.4
08/02/93
07/08/93
06/30/93
04/23/93 266.0 4.7 * 6.1 328.8 1.90 * 5.7 6.8
03/12/93 58.0 1.8 951.3 * 88.9 0.71 6.1 9.9
01/05/93
12/31/92
11/19/92
08/25/92
03/02/92
08/08/91 432.3 5.7 * 21.3 536.1 1.02 8.9 12.7
AVERAGE 2.0 X 16.5 X 0.85 X 8.1 X 10.0 X
MEDIAN 2.2 X 21.3 X 0.88 X 8.5 X 12.5 X
Historical Transactions
- -----------------------
01/14/97 1,152.0 3.4 X 17.4 X $1,240.7 1.13 X 8.1 X 9.9 X
TEXTILE INDUSTRY TRANSACTIONS 1980 - 1990: [4]
19 Transactions with Book Value Multiples 1.5 X
15 Transactions with Net Income Multiples 15.1 X
19 Transactions with Revenue Multiples 0.66 X
17 Transactions with EBITDA Multiples 7.6 X
17 Transactions with EBIT Multiples 12.5 X
</TABLE>
------------------------------------------
* Excluded from the average.
NM - Not Meaningful
NA - Not Available
[1] Firm value equals equity value plus debt assumed minus cash and
marketable securities, if disclosed.
[2] Income statement data for JPS Automotive Products is for the 1995
calendar year.
[3] Income statement data for Pioneer Yarn Mills represents annualized
results for the nine months ended June 26, 1993.
[4] Securities Data Corporation is the source of the median multiples of
transactions occurring between 1980 and 1990.
<PAGE> 51
ROBINSON-HUMPHREY
PROJECT PALMETTO
BASED ON MULTIPLES FROM MERGERS & ACQUISITIONS IN THE TEXTILE INDUSTRY
($ IN THOUSANDS)
<TABLE>
<CAPTION>
AVERAGE MULTIPLES USING RECENT TRANSACTIONS (1991 - 1999)
---------------------------------------------------------
VALUATION PALMETTO PRICE/ PRICE/ FIRM VALUE/ FIRM VALUE/ FIRM VALUE/
PARAMETER [1] VALUE LTM NET INCOME BOOK VALUE LTM REVENUES LTM EBIT LTM EBITDA
- ------------- ----- -------------- ---------- ------------ ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
Fiscal 1999 Net Income $5,762 16.5 x
Book Value $47,802 2.0 x
Fiscal 1999 Revenues $119,660 0.85 x
Fiscal 1999 EBIT $13,124 10.0 x
Fiscal 1999 EBITDA $17,118 8.1 x
<CAPTION>
AVERAGE MULTIPLES USING HISTORICAL TRANSACTIONS (1980 - 1990)
-------------------------------------------------------------
PRICE/ PRICE/ FIRM VALUE/ FIRM VALUE/ FIRM VALUE/
LTM NET INCOME BOOK VALUE LTM REVENUES LTM EBIT LTM EBITDA
-------------- ---------- ------------ ----------- ----------
<S> <C> <C> <C> <C> <C> <C>
Fiscal 1999 Net Income $5,762 15.1 x
Book Value $47,802 1.5 x
Fiscal 1999 Revenues $119,660 0.66 x
Fiscal 1999 EBIT $13,124 12.5 x
Fiscal 1999 EBITDA $17,118 7.6 x
<CAPTION>
IMPLIED EQUITY
VALUATION EQUITY VALUE
PARAMETER [1] VALUE PER SHARE [3]
- ----------- --------- -------------
<S> <C> <C>
Fiscal 1999 Net Income $94,906 $12.89
Book Value $95,076 $12.91
<CAPTION>
IMPLIED LESS:
FIRM NET DEBT
VALUE AT FY END 1999 [2]
------- -------------------
<S> <C> <C> <C> <C>
Fiscal 1999 Revenue $102,054 $40,622 $61,432 $8.34
Fiscal 1999 EBIT $131,155 $40,622 $90,533 $12.30
Fiscal 1999 EBITDA $138,971 $40,622 $98,349 $13.36
$88,059 $11.96
AVERAGE
<CAPTION>
IMPLIED EQUITY
EQUITY VALUE
VALUE PER SHARE [3]
--------- -------------
<S> <C> <C>
Fiscal 1999 Net Income $86,770 $11.78
Book Value $69,743 $9.47
<CAPTION>
IMPLIED LESS:
FIRM NET DEBT
VALUE AT 07/03/99 [2]
------- ---------------
<S> <C> <C> <C> <C>
Fiscal 1999 Revenue $78,736 $40,622 $38,114 $5.18
Fiscal 1999 EBIT $163,735 $40,622 $123,113 $16.72
Fiscal 1999 EBITDA $130,559 $40,622 $89,937 $12.21
AVERAGE $81,535 $11.07
OVERALL AVERAGE $84,797 $11.52
</TABLE>
- -------------------------------------------
[1] Balance sheet data as of July 3, 1999.
[2] Net debt equals debt plus preferred stock less cash and marketable
securities at July 3, 1999.
[3] Based on 7,363,026 diluted shares outstanding as of September 15, 1999.
<PAGE> 52
Robinson-Humphrey
PROJECT PALMETTO
ANALYSIS OF PREMIUMS PAID IN SELECTED MERGER AND ACQUISITION TRANSACTIONS
($50MM TO $150MM) [1]
DATE ANNOUNCED: JANUARY 1, 1998 - SEPTEMBER 29, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DATE DATE
ANNOUNCED EFFECTIVE TARGET NAME TARGET BUSINESS DESCRIPTION
- --------- --------- ------------------------------- ----------------------------------------------
<S> <C> <C> <C>
09/22/99 Pacific Bank NA,CA Commercial bank
09/20/99 Trigen Energy Corp Operate co-generation plants
09/20/99 Diatide Inc Manufacture diagnostic substances
09/15/99 Align-Rite International Inc Manufacture pressed,blown glass
09/09/99 Novacare Employee Services Inc Provide help supply services
09/08/99 IMPCO Technologies Inc Manufacture, fuel management systems
09/08/99 Impac Commercial Holdings Inc Mortgage securities finance company
09/08/99 Applied Digital Access Inc Manufacture telephone test equipment
09/07/99 American Bancshares Inc Commercial bank
09/03/99 Digital Link Corp Manufacture,wholesale digital access products
08/31/99 Commercial Assets Inc Real estate investment trust
08/27/99 Openroute Networks Inc Develop networking systems
08/27/99 Cogeneration Corp of America Electric utility
08/23/99 General Surgical Innovations Manufacture surgical instruments
08/19/99 Metrowerks Inc Develop,wholesale applications software
08/18/99 Cel-Sci Corp Manufacture diagnostic substances
08/16/99 Lake Ariel Bancorp Inc Bank holding company
08/11/99 HCIA Inc(AMBAC Inc) Health care info content
08/09/99 Green Street Financial Corp Provide fund mgmt,financial advisory service
08/09/99 Union Bankshares Ltd,Denver,CO Bank holding company
08/05/99 Impac Commercial Holdings Inc Mortgage securities finance company
08/03/99 OHSL Financial Corp Savings and loan
08/02/99 Collagen Aesthetics Inc Manufacture biomedical implants
08/02/99 SIBIA Neurosciences Inc Manufacture pharmaceutical products
07/30/99 Todd-AO Corp Provide motion picture productions services
07/30/99 Xionics Document Technologies Develops, supplies system software
07/29/99 Western Beef Inc Own,operate grocery stores
07/28/99 Kofax Image Products Manufacture software for image,doc mgmt
07/26/99 Exogen Inc Manufacture biological products
07/15/99 SpecTran Corp Manufacture optical fiber
07/14/99 Racing Champions Corp Manufacture games,toys,etc.
07/13/99 SGV Bancorp,West Corvina,CA Holding company
07/12/99 Happy Kids Inc Manufacture children's clothing
07/08/99 Community Federal Bancorp Inc Savings and loan
07/07/99 Smartflex Systems Manufacture custom electronic products
06/30/99 08/09/99 TechForce Corp Provide computer repair services
06/28/99 Professional Bancorp Inc,CA Bank holding company
06/22/99 National Processing Inc Provide data processing services
06/22/99 09/24/99 Market Guide Inc Provide online financial data services
06/18/99 Durakon Industries Inc Truckbed liners; towing equipment
06/16/99 TSI Inc Manufacture industrial measuring instruments
06/16/99 08/26/99 Central Sprinkler Corp Manufacture,wholesale fire sprinkler systems
06/14/99 Physicians Specialty Corp Provide medical practice management services
</TABLE>
<TABLE>
<CAPTION>
% PREMIUM PRIOR TO ANNOUNCEMENT
DATE DATE ----------------------------------
ANNOUNCED EFFECTIVE ACQUIROR NAME 1 DAY 1 WEEK 4 WEEKS
- --------- --------- -------------------------------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
09/22/99 City National Corp,California 42.33 49.68 54.67
09/20/99 Elyo(Suez Lyonnaise des Eaux) 14.29 20.55 18.12
09/20/99 Schering Berlin Inc 20.64 10.15 63.44
09/15/99 Photronics Inc 59.24 55.23 65.67
09/09/99 Investor Group -4.76 -3.61 -21.57
09/08/99 BERU AG 30.99 28.74 33.33
09/08/99 Apex Mortgage Capital Inc 31.89 26.03 30.37
09/08/99 Dynatech Corp 4.78 10.87 26.35
09/07/99 Gold Banc Corp,Leawood,Kansas 51.50 77.37 127.25
09/03/99 Investor Group 25.80 22.99 32.90
08/31/99 Asset Investors Corporation .02 2.34 2.34
08/27/99 Netrix Corp 32.00 34.69 8.20
08/27/99 Calpine Corp 48.70 43.89 42.86
08/23/99 Tyco International Ltd 36.36 48.15 48.15
08/19/99 Motorola Inc 23.46 66.67 92.31
08/18/99 Undisclosed Acquiror 300.00 * 287.50 * 254.286 *
08/16/99 NBT Bancorp Inc,Norwich,NY 42.31 40.95 64.44
08/11/99 VS&A Commun Partners III LP 31.34 32.33 4.14
08/09/99 New South Bancorp 16.19 14.02 24.49
08/09/99 Gold Banc Corp,Leawood,Kansas 84.40 61.75 53.67
08/05/99 Amresco Capital Trust 12.51 5.76 -.23
08/03/99 Provident Financial Group Inc 47.54 48.76 48.76
08/02/99 Inamed Corp 45.25 53.85 32.65
08/02/99 Merck & Co Inc 61.91 67.90 71.07
07/30/99 Liberty Media Group(AT&T Corp) 70.36 123.40 144.12
07/30/99 Oak Technology Inc 20.53 25.17 36.55
07/29/99 Cactus Acquisitions Inc 40.00 42.86 38.61
07/28/99 Investor Group 36.00 30.77 30.77
07/26/99 Smith & Nephew Inc 19.42 111.28 122.70
07/15/99 Lucent Technologies Inc -21.74 -22.58 2.13
07/14/99 Enna Corp .00 -.89 -58.39
07/13/99 IndyMac Mortgage Holdings Inc 17.65 26.58 35.14
07/12/99 HIG Capital LLC 9.52 28.67 -18.58
07/08/99 First M&F Corp 32.85 40.52 37.86
07/07/99 Saturn Electronics 108.70 216.98 205.46
06/30/99 08/09/99 Equant NV 11.48 9.68 11.48
06/28/99 FirstFed Financial Corp 30.56 27.89 31.47
06/22/99 National City,Cleveland,Ohio 23.58 33.33 60.00
06/22/99 09/24/99 Multex.com Inc 26.78 52.63 71.85
06/18/99 Littlejohn & Co LLC 32.64 29.29 24.88
06/16/99 Investor Group 16.96 19.05 35.14
06/16/99 08/26/99 Tyco International Ltd 34.08 50.00 77.78
06/14/99 TA Associates 20.00 23.53 25.37
</TABLE>
<PAGE> 53
Robinson-Humphrey
PROJECT PALMETTO
ANALYSIS OF PREMIUMS PAID IN SELECTED MERGER AND ACQUISITION TRANSACTIONS
($50MM TO $150MM) [1]
DATE ANNOUNCED: JANUARY 1, 1998 - SEPTEMBER 29, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DATE DATE
ANNOUNCED EFFECTIVE TARGET NAME TARGET BUSINESS DESCRIPTION
- --------- --------- ------------------------------- ----------------------------------------------
<S> <C> <C> <C>
06/14/99 OrCAD Inc Develop CAE and CAD software
06/11/99 Supertel Hospitality Inc Own and operate hotels
06/11/99 Unimed Pharmaceuticals Inc Manufacture pharmaceuticals
06/10/99 RIBI ImmunoChem Research Inc Manufacture biological modifiers
06/07/99 08/23/99 ViaGrafix Corp Provide software training services
06/07/99 Neopath Inc Develop integrated software
06/04/99 07/12/99 Stimsonite Corp Manufacture optical safety instruments
05/27/99 Marcam Solutions Inc Develop prepackaged software
05/24/99 Texas Micro Inc Provide computer systems services
05/21/99 AmeriLink Corp Constructs cabling systems
05/19/99 Orange National Bancorp Bank holding company
05/19/99 First Commonwealth Inc Provide dental benefit services
05/18/99 PLD Telekom Inc Merchant banking firm
05/18/99 InSight Health Services Corp Own and operate medical labs
05/17/99 Ultradata Corp Provide data processing services
05/13/99 08/23/99 Compass International Svcs Provide outsourced business services
05/11/99 09/14/99 Meridian Data Manufacture electronic computers
05/10/99 Pride International Inc Provide oil well maintenance services
05/10/99 07/29/99 CMC Industries Inc Manufacture telecommunications equipment
05/10/99 06/18/99 EMCON Associates Provide engineering services
05/09/99 Voice Control Systems Develop computer integrated systems
05/06/99 06/18/99 Shelby Williams Industries Inc Manufacture seating products
05/05/99 09/17/99 Enterprise Software Inc Provide software management services
05/03/99 Integrated Sensor Solutions In Manufacture sensors,semiconductors
04/30/99 08/03/99 Artecon Inc Manufacture computer storage devices
04/28/99 Regency Bancorp,Fresno,CA Commercial bank
04/26/99 08/19/99 Bridgeport Machines Inc Manufacture metal cutting mach tools
04/16/99 Trico Marine Svcs(Berkshire) Provide oil field supply services
04/16/99 Ocwen Asset Investment Corp Provide real estate invest services
04/12/99 Statewide Financial Corp,NJ Commercial bank
04/12/99 Meadowcraft Inc Manufacture furniture and fixtures
04/05/99 07/16/99 Mosaix Inc Develop application software
04/05/99 07/19/99 National Propane Partners LP Retail sale of propane
04/01/99 CNBT Bancshares Inc,Bellaire Commercial bank
03/25/99 Sheridan Healthcare Inc Provide health care services
03/23/99 Mutual Savings Bank FSB Savings and loan
03/23/99 Interlink Computer Sciences Provide computer design services
03/19/99 Merit Holding Corp,Tucker,GA Bank holding company
03/16/99 Dominguez Services Corp Water utility
03/16/99 07/23/99 SeaMED Corp Manufacture electromedical equipment
03/15/99 05/30/99 Haskel International Inc Manufacture pumps,plungers,boosters
03/12/99 05/28/99 Trak Auto(Dart Group) Operate auto parts stores
03/11/99 08/26/99 LAI Worldwide Inc Provide employment consulting services
03/08/99 06/24/99 Analysis & Technology Inc Provide engineering services
</TABLE>
<TABLE>
<CAPTION>
% PREMIUM PRIOR TO ANNOUNCEMENT
DATE DATE ----------------------------------
ANNOUNCED EFFECTIVE ACQUIROR NAME 1 DAY 1 WEEK 4 WEEKS
- --------- --------- -------------------------------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
06/14/99 Cadence Design Systems Inc 38.67 % 57.58 % 70.49 %
06/11/99 Humphrey Hospitality 14.61 20.98 20.98
06/11/99 Solvay Pharmaceuticals SA 18.52 12.94 62.71
06/10/99 Corixa Corp 28.28 14.25 1.56
06/07/99 08/23/99 7th Street.com 31.86 46.22 49.17
06/07/99 AutoCyte Inc 55.56 53.13 51.94
06/04/99 07/12/99 Avery Dennison Corp 101.71 96.67 96.67
05/27/99 Invensys PLC 100.00 192.68 287.10
05/24/99 RadiSys Corp 74.36 72.15 81.33
05/21/99 Tandy Corp 41.03 54.34 115.26
05/19/99 CVB Financial Corp,Ontario,CA 28.35 33.83 43.15
05/19/99 Guardian Life Ins Co of Amer 34.23 39.37 70.94
05/18/99 Metromedia International Group 27.27 27.27 27.27
05/18/99 Investor Group 50.94 45.46 77.78
05/17/99 CFI ProServices Inc 42.86 50.00 66.67
05/13/99 08/23/99 NCO Group Inc 5.82 12.49 11.49
05/11/99 09/14/99 Quantum Corp 168.94 189.63 213.77
05/10/99 First Reserve Corp 24.03 -1.04 48.06
05/10/99 07/29/99 ACT Manufacturing Inc 23.98 42.95 66.44
05/10/99 06/18/99 IT Group Inc 23.43 33.33 74.19
05/09/99 Koninklijke Philips Electronic 25.49 30.61 25.49
05/06/99 06/18/99 Falcon Products Inc 20.00 24.53 66.04
05/05/99 09/17/99 LiveWire Ventures LLC 33.33 35.59 61.62
05/03/99 Texas Instruments Inc 31.43 76.44 88.03
04/30/99 08/03/99 Box Hill Systems Corp 1.05 6.67 113.33
04/28/99 Zions Bancorp,Utah 13.16 30.25 50.87
04/26/99 08/19/99 Goldman Industrial Group Inc 67.54 77.78 53.85
04/16/99 Inverness Management LLC 19.76 33.33 21.95
04/16/99 Ocwen Financial Corp 30.03 32.09 48.60
04/12/99 Independence Community Bank 20.17 33.65 42.59
04/12/99 Investor Group 64.95 63.27 77.78
04/05/99 07/16/99 Lucent Technologies Inc 28.56 35.65 38.93
04/05/99 07/19/99 Columbia Propane Corp 90.10 84.62 140.00
04/01/99 SouthTrust Corp,Birmingham,AL 45.89 58.34 47.55
03/25/99 Investor Group 8.82 12.12 17.46
03/23/99 Independent Bank Corp,Iona,MI 49.74 48.79 46.00
03/23/99 Sterling Software Inc 41.77 45.46 107.41
03/19/99 Synovus Financial Corp,GA 25.87 27.11 31.43
03/16/99 American States Water Co 22.64 39.79 47.73
03/16/99 07/23/99 Plexus Corp 80.83 75.04 70.94
03/15/99 05/30/99 Investor Group 42.35 49.57 51.77
03/12/99 05/28/99 Halart LLC 28.57 26.32 22.03
03/11/99 08/26/99 TMP Worldwide Inc 38.03 25.16 53.84
03/08/99 06/24/99 Anteon Corp 18.86 16.20 23.81
</TABLE>
<PAGE> 54
Robinson-Humphrey
PROJECT PALMETTO
ANALYSIS OF PREMIUMS PAID IN SELECTED MERGER AND ACQUISITION TRANSACTIONS
($50MM TO $150MM) [1]
DATE ANNOUNCED: JANUARY 1, 1998 - SEPTEMBER 29, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DATE DATE
ANNOUNCED EFFECTIVE TARGET NAME TARGET BUSINESS DESCRIPTION
- --------- --------- ------------------------------- ----------------------------------------------
<S> <C> <C> <C>
03/04/99 06/01/99 K&G Men's Center Inc Own,operate men's apparel stores
03/01/99 Collagen Aesthetics Inc Manufacture biomedical implants
03/01/99 Imperial Credit Industries Inc Mortgage banking services
03/01/99 04/29/99 Aydin Corp Manufacture telecommunication equipment
02/25/99 08/31/99 Matewan Bancshares Inc Bank holding company
02/24/99 03/17/99 Capital Re Corp Reinsurance company;holding company
02/23/99 Control Devices Inc Manufacture relays and industrial controls
02/23/99 07/08/99 Damen Financial Corp Provide financial credit services
02/22/99 06/22/99 SEEQ Technology Inc Manufacture semiconductors
02/19/99 Oacis Healthcare Holdings Corp Provide systems design services
02/17/99 08/06/99 Equitrac Corp Design computer integrated systems
02/11/99 02/10/99 John H Harland Co Provide commercial printing services
02/10/99 Hudson General Corp Provide aviation services
02/10/99 03/26/99 Hudson General Corp Provide aviation services
02/03/99 02/03/99 Texas Industries Inc Manufacture cement,steel products
02/02/99 Hudson General Corp Provide aviation services
02/01/99 08/02/99 Broad Natl Bancorp,Newark,NJ National commercial bank
01/27/99 07/12/99 First Citizens Corp,Newman,GA Savings bank
01/27/99 Rock Bottom Restaurants Inc Own,operate restaurants
01/26/99 05/20/99 Little Falls Bancorp Inc Commercial bank
01/18/99 04/28/99 FDP Corp Develop software
01/14/99 Axsys Technologies Inc Manufacture,wholesale precision optical systems
01/13/99 06/01/99 Comstock Bancorp,Reno,Nevada Savings and loan
01/11/99 02/22/99 Alarmguard Holdings Inc Provide security system services
01/07/99 02/24/99 Defiance Inc Manufacture,wholesale bearings
01/07/99 02/12/99 Trident International Inc Manufacture printing machinery
01/06/99 03/01/99 ExecuStay Corp Own and operate rooming houses
01/05/99 Peekskill Finl,Peekskill,NY Savings and loan holding company
12/18/98 06/11/99 Ramapo Financial Corp Commercial bank
12/17/98 07/19/99 Wood Bancorp,Bowling Green,OH Bank holding company
12/17/98 02/04/99 Rival Co Manufacture household appliances
12/16/98 01/25/99 LCS Industries Inc Provide mail advertising services
12/15/98 06/08/99 Hallwood Energy Partners LP Oil and gas exploration, production
12/11/98 05/13/99 STB Systems Inc Manufacture,wholesale multimedia systems
12/11/98 01/27/99 C-ATS Software Inc Develop risk management software
12/10/98 07/14/99 First Philson Financial Corp Bank holding company
12/10/98 06/01/99 FNB Rochester Corp Commercial bank
12/04/98 07/15/99 High Point Financial Corp Bank holding company
12/03/98 04/21/99 Denbury Resources Inc Oil and gas exploration,production
12/03/98 04/08/99 Banner Aerospace Inc Wholesale aerospace equipment
12/03/98 01/22/99 Microdyne Corp Manufacture,wholesale telemetry products
11/24/98 03/24/99 Besicorp Group Inc Manufacture, wholesale heating equipment
11/23/98 01/13/99 Total Control Products Inc Manufacture process control instruments
11/19/98 01/05/99 CN Biosciences Inc Manufacture medicinal biotech products
11/19/98 02/22/99 Reno Air Inc Passenger airline
</TABLE>
<TABLE>
<CAPTION>
% PREMIUM PRIOR TO ANNOUNCEMENT
DATE DATE ----------------------------------
ANNOUNCED EFFECTIVE ACQUIROR NAME 1 DAY 1 WEEK 4 WEEKS
- --------- --------- -------------------------------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
03/04/99 06/01/99 Men's Wearhouse Inc 37.35% 45.49% 44.92%
03/01/99 Mentor Corp 29.61 37.28 18.37
03/01/99 Leucadia National Corp 7.25 17.46 19.36
03/01/99 04/29/99 L-3 Communications Holdings 64.89 64.89 62.41
02/25/99 08/31/99 BB&T Corp,Winston-Salem,NC -15.71 -9.90 -1.86
02/24/99 03/17/99 ACE Ltd 14.43 41.25 -8.07
02/23/99 First Technology PLC 20.37 19.27 6.56
02/23/99 07/08/99 Midcity Financial Corp 20.33 28.77 25.47
02/22/99 06/22/99 LSI Logic Corp 46.91 44.68 117.02
02/19/99 SAIC 39.61 42.40 42.40
02/17/99 08/06/99 Investor Group 4.35 5.66 15.86
02/11/99 02/10/99 Investor Group 5.65 7.15 1.38
02/10/99 Ogden Corp 18.99 18.18 30.00
02/10/99 03/26/99 GlobeGround GmbH 39.13 38.18 52.00
02/03/99 02/03/99 Investor 26.84 32.25 27.13
02/02/99 Ranger Aerospace Corp 31.81 30.91 44.00
02/01/99 08/02/99 Independence Community Bank 18.11 24.71 33.33
01/27/99 07/12/99 BB&T Corp,Winston-Salem,NC 37.66 50.80 50.80
01/27/99 RB Capital Inc 53.85 53.85 95.12
01/26/99 05/20/99 Hudson United Bancorp,NJ 5.72 4.73 4.40
01/18/99 04/28/99 SunGard Data Systems Inc 14.47 20.70 37.09
01/14/99 Undisclosed Acquiror 42.86 42.86 42.86
01/13/99 06/01/99 First Security Corp,Utah 23.21 24.71 29.45
01/11/99 02/22/99 ADT Inc(ADT Group PLC) -5.13 12.98 21.31
01/07/99 02/24/99 General Chemical Group Inc 43.40 43.40 46.15
01/07/99 02/12/99 Illinois Tool Works Inc 78.38 83.33 78.38
01/06/99 03/01/99 Marriott International Inc 3.23 7.18 9.80
01/05/99 Investor Group 8.66 9.96 25.46
12/18/98 06/11/99 Valley National Bancorp,NJ 58.93 72.17 84.47
12/17/98 07/19/99 Sky Financial Group Inc 29.59 44.37 50.99
12/17/98 02/04/99 Moriarty Acquisition Corp 22.91 25.00 92.98
12/16/98 01/25/99 CustomerOne Holding Corp 11.11 21.74 52.17
12/15/98 06/08/99 Hallwood Consolidated Resource 27.77 10.02 -3.40
12/11/98 05/13/99 3Dfx Interactive Inc 81.17 81.17 73.78
12/11/98 01/27/99 Misys PLC 71.43 66.67 90.48
12/10/98 07/14/99 BT Financial Corp,Johnstown,PA 39.65 45.13 46.27
12/10/98 06/01/99 M&T Bank,Buffalo,New York 6.02 55.29 85.92
12/04/98 07/15/99 Lakeland Bancorp Inc,NJ 37.78 35.27 39.07
12/03/98 04/21/99 Texas Pacific Group Inc 54.00 13.47 -9.22
12/03/98 04/08/99 Fairchild Corp 25.71 41.94 40.80
12/03/98 01/22/99 L-3 Communications Holdings 15.94 60.00 44.14
11/24/98 03/24/99 BGI Acquisition LLC 11.17 11.59 6.37
11/23/98 01/13/99 GE Fanuc Automation N America 15.79 12.82 18.92
11/19/98 01/05/99 EM Industries Inc(Merck AG) 8.11 -4.31 -.50
11/19/98 02/22/99 American Airlines Inc(AMR) 6.90 15.89 44.19
</TABLE>
<PAGE> 55
Robinson-Humphrey
PROJECT PALMETTO
ANALYSIS OF PREMIUMS PAID IN SELECTED MERGER AND ACQUISITION TRANSACTIONS
($50MM TO $150MM) [1]
DATE ANNOUNCED: JANUARY 1, 1998 - SEPTEMBER 29, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DATE DATE
ANNOUNCED EFFECTIVE TARGET NAME TARGET BUSINESS DESCRIPTION
- --------- --------- ------------------------------- ----------------------------------------------
<S> <C> <C> <C>
11/18/98 05/14/99 National Information Group Fire insurance holding company
11/16/98 06/30/99 HF Bancorp Inc,Hemet,CA Bank holding co; savings bank
11/11/98 05/20/99 Village Bancorp Inc Commercial bank
11/11/98 03/25/99 Sulcus Hospitality Manufacture computers, Develop software
11/10/98 12/16/98 Steel of West Virginia Inc Manufacture steel products
11/10/98 12/22/98 Intensiva Healthcare Corp Provide acute,long-term care services
11/10/98 02/17/99 Rockford Industries Inc Provide medical equipment finance services
11/09/98 12/22/98 Global Motorsport Group Inc Wholesale motorcycle parts
11/02/98 12/10/98 AquaPenn Spring Water Co Inc Produce,wholesale spring water
10/28/98 03/22/99 General Scanning Inc Manufacture optical test equip
10/28/98 03/29/99 First Coastal Bankshares Inc Commercial bank
10/22/98 03/17/99 CardioGenesis Corp Manufacture electromedical equipment
10/21/98 03/31/99 Fort Bend Holding,Rosenberg,TX Bank holding company
10/19/98 03/11/99 DepoTech Corp Manufacture sustained-release prods
10/16/98 02/12/99 BRC Holdings Inc Develop health care software
10/16/98 12/15/98 BRC Holdings Inc Develop health care software
10/15/98 04/01/99 1st Bergen Bancorp Savings and loan
10/14/98 03/30/99 Quarterdeck Corp Develop utilities,commun software
10/13/98 12/31/98 DataWorks Corp Develop computer integrated systems
10/07/98 12/30/98 PNB Financial Group Bank & holding company
10/06/98 03/17/99 N2K Inc Retail music products on Internet
10/01/98 01/07/99 Richey Electronics Inc Wholesale electronic components
09/28/98 05/14/99 Enterprise Federal Bancorp,OH Bank holding company
09/25/98 04/01/99 Youth Services International Provide youth rehabilitation services
09/23/98 02/25/99 Ryerson Tull Inc Wholesale steel
09/23/98 12/17/98 J&L Specialty Steel Inc Manufacture steel,steel products
09/22/98 03/31/99 Raritan Bancorp Savings & loan holding company
09/11/98 06/22/99 Broughton Foods Co Produce dairy products
09/09/98 05/03/99 Calumet Bancorp Inc Commercial bank holding company
09/08/98 12/15/98 PEC Israel Economic Corp Investment firm
09/04/98 12/01/98 Monocacy Bancshares Inc Commercial bank
09/03/98 01/21/99 Gryphon Holdings Inc Insurance company; holding company
09/03/98 03/19/99 Cross-Continent Auto Retailers Wholesale,retail motor vehicles
08/28/98 06/10/99 CCAIR Inc Passenger airlines;courier services
08/26/98 01/08/99 Toastmaster Inc Manufacture electric consumer applications
08/17/98 01/00/00 Westco Bancorp Inc,IL Federal savings institution
08/13/98 12/03/98 Clearview Cinema Group Inc Own and operate movie theaters
08/10/98 03/26/99 Scott & Stringfellow Financial Securities brokerage holding company
08/04/98 12/31/98 InControl Inc Manufacture heart implants
08/03/98 11/17/98 Freeport-McMoRan Sulphur Inc Sulphur mining company
07/28/98 09/10/98 CyberMedia Inc Develop,wholesale support software products
07/24/98 12/23/98 Information Storage Devices Manufacture voice recorded circuits
07/23/98 10/08/98 Innova Corp Manufacture millimeter wave radios
07/21/98 09/29/98 Globalink Inc Provide computer programming services
</TABLE>
<TABLE>
<CAPTION>
% PREMIUM PRIOR TO ANNOUNCEMENT
DATE DATE ----------------------------------
ANNOUNCED EFFECTIVE ACQUIROR NAME 1 DAY 1 WEEK 4 WEEKS
- --------- --------- -------------------------------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
11/18/98 05/14/99 First American Financial Corp 100.64% 159.16% 273.18%
11/16/98 06/30/99 Temple-Inland Inc,Diboll,Texas 8.82 10.45 39.62
11/11/98 05/20/99 Webster Finl Corp,Waterbury,CT 21.05 27.10 26.31
11/11/98 03/25/99 Eltrax Systems Inc 159.58 149.60 260.53
11/10/98 12/16/98 Roanoke Electric Steel 75.51 100.00 79.17
11/10/98 12/22/98 Select Medical Corp 54.00 60.42 92.50
11/10/98 02/17/99 American Express Co 9.24 28.43 137.60
11/09/98 12/22/98 Stonington Partners Inc 13.46 33.76 31.09
11/02/98 12/10/98 Danone Group 34.19 100.00 160.00
10/28/98 03/22/99 Lumonics Inc 49.54 80.33 39.35
10/28/98 03/29/99 Centura Banks Inc,NC 27.79 56.07 68.50
10/22/98 03/17/99 Eclipse Surgical Technologies 167.62 155.46 134.17
10/21/98 03/31/99 Southwest Bancorporation,TX 14.47 14.47 7.41
10/19/98 03/11/99 SkyePharma PLC 43.20 50.74 30.18
10/16/98 02/12/99 Affiliated Computer Services 17.15 16.92 15.15
10/16/98 12/15/98 Affiliated Computer Services 17.15 16.92 15.15
10/15/98 04/01/99 Kearny Federal Savings Bank 31.51 65.52 37.14
10/14/98 03/30/99 Symantec Corp 28.00 66.40 28.00
10/13/98 12/31/98 Platinum Software Corp 23.72 54.20 23.72
10/07/98 12/30/98 Western Bancorp,California 7.73 -1.25 -.42
10/06/98 03/17/99 CDnow Inc 50.72 -10.51 -18.18
10/01/98 01/07/99 Arrow Electronics Inc 52.73 68.00 127.03
09/28/98 05/14/99 Fifth Third Bancorp,OH 51.63 49.68 74.37
09/25/98 04/01/99 Correctional Services Corp .90 -14.76 -43.82
09/23/98 02/25/99 Inland Steel Industries Inc -8.50 -11.60 -40.78
09/23/98 12/17/98 Usinor SA 100.00 112.50 37.84
09/22/98 03/31/99 United National Bancorp,NJ 16.46 52.20 31.67
09/11/98 06/22/99 Suiza Foods Corp -4.35 -2.94 -2.94
09/09/98 05/03/99 FBOP Corp,Oak Park,Illinois 18.52 19.63 3.23
09/08/98 12/15/98 Investor Group 31.51 28.00 23.71
09/04/98 12/01/98 F&M Bancorp,Frederick,MD 43.53 39.18 43.53
09/03/98 01/21/99 Markel Corp 33.33 49.02 20.64
09/03/98 03/19/99 Republic Industries Inc 66.21 67.84 55.64
08/28/98 06/10/99 Mesa Air Group Inc 2.35 2.35 -7.20
08/26/98 01/08/99 Salton/Maxim Housewares Inc 3.70 21.74 36.59
08/17/98 01/00/00 MAF Bancorp,Clarendon Hills,IL 14.31 8.30 6.43
08/13/98 12/03/98 Cablevision Systems Corp 10.23 10.23 7.78
08/10/98 03/26/99 BB&T Corp,Winston-Salem,NC 19.78 28.74 35.05
08/04/98 12/31/98 Guidant Corp 21.52 50.00 118.18
08/03/98 11/17/98 McMoRan Oil & Gas Co 14.94 6.38 4.17
07/28/98 09/10/98 Network Associates Inc 25.62 38.18 117.14
07/24/98 12/23/98 Windbond Electronic Corp 46.34 36.36 44.58
07/23/98 10/08/98 Digital Microwave Corp 16.17 36.50 30.00
07/21/98 09/29/98 Lernout & Hauspie Speech 21.08 -6.67 40.00
</TABLE>
<PAGE> 56
Robinson-Humphrey
PROJECT PALMETTO
ANALYSIS OF PREMIUMS PAID IN SELECTED MERGER AND ACQUISITION TRANSACTIONS
($50MM TO $150MM) [1]
DATE ANNOUNCED: JANUARY 1, 1998 - SEPTEMBER 29, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DATE DATE
ANNOUNCED EFFECTIVE TARGET NAME TARGET BUSINESS DESCRIPTION
- --------- --------- ------------------------------- ----------------------------------------------
<S> <C> <C> <C>
07/20/98 01/21/99 Financial Bancorp Inc Savings and loan
07/20/98 10/01/98 US SerVis Inc Develop,design,wholesale software
07/19/98 07/19/98 Transatlantic Holdings Inc Fire, marine, casualty insurance
07/14/98 10/26/98 New West Eyeworks Inc Own,operate eyeglass stores
07/14/98 09/18/98 DEP Corp Manufacture personal care products
07/13/98 03/08/99 AVECOR Cardiovascular Inc Manufacture,wholesale medical devices
07/06/98 12/23/98 Peoples Telephone Co Inc Own,operate public pay telephones
07/02/98 01/31/99 First Mutual Bancorp,Illinois Provide business credit services
07/01/98 07/01/98 Sotheby's Holdings Inc Provide auctioning, RE services
06/25/98 01/04/99 1st Bancorp,Vincennes,Indiana Bank holding company
06/22/98 10/02/98 GT Bicycles Inc Manufacture,wholesale bicycles
06/15/98 08/27/98 FTP Software Inc Holding company
06/15/98 07/28/98 Spartech Corp Manufacture plastic products
06/04/98 07/20/98 Pollo Tropical Inc Own and operate restaurants
06/04/98 11/13/98 Allied Life Financial Corp Insurance company; holding company
06/02/98 12/16/98 Home Bancorp of Elgin,Elgin,IL Savings and loan
06/02/98 07/08/98 Sigma Circuits Inc Manufacture printed circuit boards
06/02/98 10/08/98 RF Power Products Manufacture,wholesale RF power delivery systems
06/01/98 08/28/98 PST Vans Inc Trucking company
05/29/98 08/17/98 Arch Petroleum Inc Oil,gas mining
05/29/98 10/19/98 Wayne Bancorp Inc,Wayne,NJ Bank holding company
05/29/98 10/20/98 Emerging Communications Inc Provide local telephone services
05/28/98 05/28/98 MedImmune Inc Manufacture therapeutics, vaccines
05/28/98 07/07/98 Donnelley Enterprise Solutions Provide info management services
05/22/98 07/22/98 Pete's Brewing Co Produce beer
05/20/98 10/22/98 National Gas & Oil Co Gas utility; gas exploration and products
05/12/98 08/24/98 Virus Research Institute Inc Manufacture biological products
05/08/98 06/15/98 Authentic Specialty Foods Inc Wholesale,Manufacture Mexican foods
05/07/98 07/31/98 Innovative Tech Systems Inc Develop facilities management software
05/05/98 09/25/98 Allied Digital Technologies Co Manufacture multi media software products
05/04/98 03/16/99 Marquee Group Inc Provide professional management services
05/04/98 06/10/98 Farah Inc Manufacture, ret family apparel
04/27/98 07/27/98 CorporateFamily Solutions Inc Provide child day care services
04/22/98 06/29/98 AccelGraphics Inc Manufacture graphics accelerators
04/16/98 09/28/98 Award Software International Develop software
04/15/98 05/29/98 Simulation Sciences Inc Develop simulation software
04/14/98 08/31/98 ComSouth Bankshares Inc Commercial bank
04/03/98 07/21/98 Bertucci's Inc Own and operate restaurants
03/30/98 05/11/98 Children's Discovery Centers Operate child care centers
03/27/98 07/01/98 Grand Prix Assoc Of Long Beach Own,operate motorsport facilities
03/26/98 07/31/98 Whitehall Corp Manufacture electronic components
03/23/98 06/30/98 Ultra Pac Inc Manufacture packaging material
</TABLE>
<TABLE>
<CAPTION>
% PREMIUM PRIOR TO ANNOUNCEMENT
DATE DATE ----------------------------------
ANNOUNCED EFFECTIVE ACQUIROR NAME 1 DAY 1 WEEK 4 WEEKS
- --------- --------- -------------------------------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
07/20/98 01/21/99 Dime Community Bancorp Inc,NY 24.25% 20.49% 34.78%
07/20/98 10/01/98 HBO & Co 151.62 85.98 151.62
07/19/98 07/19/98 American International Group -3.71 -.86 6.08
07/14/98 10/26/98 National Vision Associates Ltd 23.81 33.33 30.00
07/14/98 09/18/98 Henkel KGaA 31.25 95.35 78.72
07/13/98 03/08/99 Medtronic Inc 31.65 76.27 114.43
07/06/98 12/23/98 Davel Communications Group Inc 87.52 80.31 118.05
07/02/98 01/31/99 Union Planters Corp,Memphis,TN 5.71 4.23 9.63
07/01/98 07/01/98 Investor Group .56 -1.10 1.12
06/25/98 01/04/99 German American Bancorp,IN 59.19 69.10 69.80
06/22/98 10/02/98 Schwinn Holdings Corp 68.42 77.78 36.17
06/15/98 08/27/98 NetManage Inc 14.05 -.01 -23.97
06/15/98 07/28/98 Vita International Ltd -6.08 -1.73 2.10
06/04/98 07/20/98 Carrols Corp 10.00 7.32 18.12
06/04/98 11/13/98 Nationwide Mutual Insurance Co 4.35 13.74 26.32
06/02/98 12/16/98 State Financial Services Corp 11.26 11.26 8.87
06/02/98 07/08/98 Tyco International Ltd 13.51 24.44 20.00
06/02/98 10/08/98 Advanced Energy Industries 15.61 49.33 74.83
06/01/98 08/28/98 US Xpress Enterprises Inc 32.80 35.82 10.67
05/29/98 08/17/98 Pogo Producing Co .13 5.47 -3.53
05/29/98 10/19/98 Valley National Bancorp,NJ 40.31 43.23 49.46
05/29/98 10/20/98 Innovative Communication Co 46.43 42.61 54.72
05/28/98 05/28/98 BB Biotech AG 15.81 13.48 7.30
05/28/98 07/07/98 Bowne & Co Inc 60.77 61.54 83.61
05/22/98 07/22/98 Gambrinus Co 6.25 39.73 42.66
05/20/98 10/22/98 Licking Rural Electrification 6.67 18.18 26.06
05/12/98 08/24/98 T Cell Sciences Inc 91.64 75.67 81.72
05/08/98 06/15/98 Agrobios(Desc SA de CV) 6.25 13.33 37.37
05/07/98 07/31/98 Peregrine Systems Inc 8.04 10.88 25.78
05/05/98 09/25/98 Investor Group 14.29 14.29 37.93
05/04/98 03/16/99 SFX Entertainment Inc -29.08 -26.04 -12.25
05/04/98 06/10/98 Tropical Sportswear Intl Corp 33.33 44.00 39.81
04/27/98 07/27/98 Bright Horizons Holdings Inc -21.36 -22.33 -7.55
04/22/98 06/29/98 Evans & Sutherland Computer 13.58 22.67 21.05
04/16/98 09/28/98 Phoenix Technologies Ltd 12.83 21.34 53.12
04/15/98 05/29/98 Siebe PLC 24.03 16.79 11.11
04/14/98 08/31/98 Anchor Financial Corp 9.32 17.86 20.00
04/03/98 07/21/98 NE Restaurant Co Inc 35.48 35.48 35.48
03/30/98 05/11/98 Knowledge Beginnings Inc 20.99 16.67 25.64
03/27/98 07/01/98 Dover Downs Entertainment Inc 11.81 22.06 21.55
03/26/98 07/31/98 Aviation Sales Co 2.57 -2.95 9.08
03/23/98 06/30/98 Ivex Packaging Corp 131.78 129.63 123.42
</TABLE>
<PAGE> 57
Robinson-Humphrey
PROJECT PALMETTO
ANALYSIS OF PREMIUMS PAID IN SELECTED MERGER AND ACQUISITION TRANSACTIONS
($50MM TO $150MM) [1]
DATE ANNOUNCED: JANUARY 1, 1998 - SEPTEMBER 29, 1999
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DATE DATE
ANNOUNCED EFFECTIVE TARGET NAME TARGET BUSINESS DESCRIPTION
- --------- --------- ------------------------------- ----------------------------------------------
<S> <C> <C> <C>
03/18/98 04/23/98 NetSpeak Corp Provide Internet telephony services
03/17/98 05/27/98 ForeFront Group Inc Develop software
03/16/98 10/30/98 Norwood Promotional Products Manufacture hats,promotional prods
03/11/98 05/15/98 Grist Mill Granola bars, natural cereal
03/10/98 06/05/98 Portec Inc Manufacture railroad track components
03/10/98 06/19/98 Corcom Inc Manufacture radio filters
03/09/98 04/30/98 3-D Geophysical Inc Provide oil,gas field exploration
03/06/98 04/30/98 Proxima Corp Manufacture PC liquid crystal display products
03/05/98 05/20/98 XLConnect Solutions Inc Provide integrated system design services
03/02/98 04/30/98 Signature Brands USA Inc Manufacture,wholesale consumer housewares
03/02/98 04/30/98 First Alert Inc Manufacture fire and burglar alarms
02/25/98 07/21/98 Environment/One Corp Manufacture pressure sewer systems
02/25/98 09/30/98 FAC Realty Trust Inc REIT;own,operate shopping centers
02/23/98 06/26/98 CompScript Inc Provide pharmaceutical management services
02/18/98 02/17/98 Seacor Smit Inc Water transportation services
02/18/98 10/02/98 Fed One Bancorp,Wheeling,WV Bank holding company
02/18/98 11/25/98 National Income Realty Trust Real estate investment trust
02/18/98 06/27/98 Republic Automotive Parts Inc Manufacture,wholesale automotive parts
02/11/98 06/05/98 EarthLink Network Inc Provide Internet services
02/09/98 06/18/98 American Waste Services Provide waste management services
02/04/98 03/15/99 Spice Entertainment Cos Inc Provide adult entertainment services
02/04/98 06/09/98 TresCom International Inc Provide communications services
02/02/98 12/03/98 Sandwich Bancorp,Sandwich,MA Bank holding company
01/29/98 06/05/98 Monroc Inc Manufacture,wholesale concrete,sand,gravel
01/26/98 09/14/98 Ambassador Bk of Commonwealth Commercial bank
01/26/98 05/06/98 TransAmerican Waste Industries Provide waste management services
01/23/98 01/23/98 Amerada Hess Corp Oil and gas exploration,prodn
01/22/98 09/29/98 BT Office Products Intl Inc Wholesale office stationary,supplies
01/20/98 04/16/98 NACT Telecommunications(GST) Provide telephone communication services
01/20/98 10/05/98 Buttrey Food and Drug Stores Own,operate supermarkets,drug store
01/14/98 06/02/98 Meridian Point Realty Trust Real estate investment trust
01/08/98 01/30/98 Rayonier Timberlands LP Own,operate tracts
01/06/98 04/01/98 Schult Homes Corp Manufacture mobile homes
</TABLE>
<TABLE>
<CAPTION>
% PREMIUM PRIOR TO ANNOUNCEMENT
DATE DATE ----------------------------------
ANNOUNCED EFFECTIVE ACQUIROR NAME 1 DAY 1 WEEK 4 WEEKS
- --------- --------- -------------------------------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C>
03/18/98 04/23/98 Motorola Inc 11.37% 16.22% 35.59%
03/17/98 05/27/98 CBT Group PLC 17.27 29.36 48.50
03/16/98 10/30/98 FPK LLC 19.14 19.14 23.58
03/11/98 05/15/98 International Home Foods Inc 18.37 21.47 47.77
03/10/98 06/05/98 J Richard Industries Inc 8.48 13.78 10.35
03/10/98 06/19/98 Communications Instruments Inc 33.33 31.65 36.84
03/09/98 04/30/98 Western Atlas Inc 8.73 16.09 24.52
03/06/98 04/30/98 ASK AS 31.34 25.71 23.94
03/05/98 05/20/98 Xerox Corp -11.11 15.11 22.14
03/02/98 04/30/98 Sunbeam Corp 57.14 60.98 106.25
03/02/98 04/30/98 Sunbeam Corp 68.00 90.91 110.00
02/25/98 07/21/98 Precision Castparts Corp 17.31 22.00 27.08
02/25/98 09/30/98 Prometheus Southeast Retail 7.04 21.60 29.92
02/23/98 06/26/98 Omnicare Inc 26.56 67.24 52.70
02/18/98 02/17/98 Investor Group 3.50 2.76 -4.79
02/18/98 10/02/98 United Bankshares Inc,WV 8.86 22.07 10.51
02/18/98 11/25/98 Tarragon Realty Investors 22.92 17.89 20.12
02/18/98 06/27/98 Keystone Automotive Inds Inc 33.03 33.33 28.57
02/11/98 06/05/98 Sprint Corp 16.51 40.08 57.90
02/09/98 06/18/98 USA Waste Services Inc 100.00 156.00 166.67
02/04/98 03/15/99 Playboy Enterprises Intl Inc 17.61 17.61 42.81
02/04/98 06/09/98 Primus Telecommunications 25.17 30.86 51.52
02/02/98 12/03/98 CompassBank,New Bedford,MA 47.13 48.84 48.84
01/29/98 06/05/98 US Aggregates Inc 5.07 10.46 6.37
01/26/98 09/14/98 Fulton Finl Corp,Lancaster,PA 26.26 28.59 27.41
01/26/98 05/06/98 USA Waste Services Inc 51.42 36.57 78.59
01/23/98 01/23/98 Drakes Office Systems Ltd 4.49 3.51 8.32
01/22/98 09/29/98 Buhrmann NV 32.53 78.86 78.86
01/20/98 04/16/98 World Access Inc 12.00 12.45 16.67
01/20/98 10/05/98 Albertson's Inc 44.19 44.19 47.62
01/14/98 06/02/98 EastGroup Properties 38.78 65.85 88.89
01/08/98 01/30/98 Rayonier Inc 11.23 25.30 17.51
01/06/98 04/01/98 Oakwood Homes Corp 1.12 10.43 19.21
---------------------------------------------------------------------
AVERAGE 31.19% 38.30% 46.71%
MEDIAN 25.17% 31.65% 37.37%
---------------------------------------------------------------------
</TABLE>
- ------------------------
Source: Securities Data Corporation
[1] Merger and acquisition transactions announced since 01/01/98 with total
transaction value greater than $50 million and less than $150 million.
Transactions announced prior to 01/01/99 which were not effective as of
09/29/99 have been omitted.
<PAGE> 58
Robinson-Humphrey
PROJECT PALMETTO
SELECTED M&A TRANSACTION PREMIUMS FOR DEALS BETWEEN $50 AND $150 MILLION
- --------------------------------------------------------------------------------
(DOLLARS IN THOUSANDS EXCEPT SHARE PRICE)
<TABLE>
<CAPTION>
AVERAGE PREMIUM AVERAGE PREMIUM AVERAGE PREMIUM IMPLIED EQUITY
PALMETTO 1 DAY PRIOR 1 WEEK PRIOR 4 WEEKS PRIOR EQUITY VALUE PER
VALUATION PARAMETER VALUE TO ANNOUNCEMENT TO ANNOUNCEMENT TO ANNOUNCEMENT VALUE SHARE [2]
------------------- ----- --------------- --------------- --------------- ----- ---------
<S> <C> <C> <C> <C> <C> <C>
Stock Price 1 Day Prior to Announcement[1] $5.13 31.2 % $49,505 $6.72
Stock Price 1 Week Prior to Announcement[1] $5.50 38.3 % $56,008 $7.61
Stock Price 4 Weeks Prior to Announcement[1] $5.81 46.7 % $62,787 $8.53
-----------------------------------
AVERAGE $56,100 $7.62
-----------------------------------
</TABLE>
- -------------------------------
[1] Assumes announcement date of 09/30/99.
[2] Based on 7,363,026 diluted shares outstanding as of September 15, 1999.
<PAGE> 59
ROBINSON-HUMPHREY
PROJECT PALMETTO
DISTRIBUTION OF M&A PREMIUMS OFFERED [1]
1991 - 1998
<TABLE>
<CAPTION>
OVER 20% OVER 40% OVER 60%
YEAR UNDER 20% THROUGH 40% THROUGH 60% THROUGH 80%
---- ----------------------- ----------------------- ------------------------- ------------------------
# OF DEALS % OF TOTAL # OF DEALS % OF TOTAL # OF DEALS % OF TOTAL # OF DEALS % OF TOTAL
---------- ---------- ---------- ---------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
1991 50 36.5% 42 30.7% 28 20.4% 7 5.1%
1992 42 29.6% 42 29.6% 21 14.8% 19 13.4%
1993 47 27.2% 63 36.4% 34 19.7% 14 8.1%
1994 66 25.4% 89 34.2% 52 20.0% 28 10.8%
1995 106 32.7% 108 33.3% 55 17.0% 22 6.8%
1996 136 35.7% 117 30.7% 70 18.4% 34 8.9%
1997 171 35.1% 169 34.7% 84 17.2% 35 7.2%
1998 175 34.2% 156 30.5% 83 16.2% 46 9.0%
<CAPTION>
OVER 80%
YEAR THROUGH 100% OVER 100% TOTAL
---- ----------------------- ----------------------- ----------------
# OF DEALS % OF TOTAL # OF DEALS % OF TOTAL
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
1991 4 2.9% 6 4.4% 137 100.0%
1992 14 9.9% 4 2.8% 142 100.0%
1993 9 5.2% 6 3.5% 173 100.0%
1994 7 2.7% 18 6.9% 260 100.0%
1995 6 1.9% 27 8.3% 324 100.0%
1996 10 2.6% 14 3.7% 381 100.0%
1997 15 3.1% 13 2.7% 487 100.0%
1998 17 3.3% 35 6.8% 512 100.0%
</TABLE>
- -----------------------------
[1] Only includes transactions with a publicly disclosed purchase price. All
statistics are based on the stock closing price one day prior to
announcement.
Source: Mergerstat Review
<PAGE> 60
Robinson-Humphrey
PROJECT PALMETTO
M&A Premiums by Deal Size[1]
1992-1998
I. Median Percent Premium Offered
<TABLE>
Purchase Price: 1992 (Base) 1993 (Base) 1994 (Base) 1995 (Base) 1996 (Base)
- --------------- ------------- ------------- -------------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$25.0 million or less 33.3% (35) 32.3% (38) 42.9% (45) 42.9% (53) 32.2% (39)
$25.0 through $50.0 million 21.6% (30) 36.7% (28) 33.9% (36) 24.4% (53) 26.4% (56)
$50.0 through $100.0 million 32.3% (22) 31.5% (31) 27.8% (53) 35.4% (44) 27.3% (68)
$100.0 million or more 39.0% (55) 32.0% (76) 35.8% (126) 29.0% (174) 26.6% (218)
100% Cash Consideration 29.6% (35) 32.5% (46) 36.8% (59) 28.4% (91) 26.7% (115)
<CAPTION>
Purchase Price: 1997 (Base) 1998 (Base)
- --------------- ------------- -------------
<S> <C> <C> <C> <C>
$25.0 million or less 36.9% (52) 39.8% (55)
$25.0 through $50.0 million 22.4% (40) 34.7% (54)
$50.0 through $100.0 million 26.6% (63) 38.5% (79)
$100.0 million or more 27.6% (332) 27.5% (323)
100% Cash Consideration 25.8% (191) 30.1% (213)
</TABLE>
- ---------------
[1] Only includes transactions with a publicly disclosed purchase price. All
statistics are based on the stock closing price one day prior to
announcement.
Source: Mergerstat Review
<PAGE> 61
Robinson-Humphrey
PROJECT PALMETTO
Summary of Recent Merger and Acquisition Activity [1]
(Dollars in Millions)
<TABLE>
<CAPTION>
1992 1993 1994 1995 1996 1997 1998 AVERAGE
------- -------- -------- -------- -------- -------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
All Industries:
- ---------------
Total Number of Net Acquisition
Announcements 2,574 2,663 2,997 3,510 5,848 7,800 7,809
Total Dollar Value Paid [1] $96,688 $176,400 $226,671 $356,016 $494,962 $657,063 $1,191,861
------- -------- -------- -------- -------- -------- ----------
Average Premium Paid Over Market 41.0% 38.7% 41.9% 44.7% 36.6% 35.7% 40.7% 39.9%
Median Premium Paid Over Market 34.7% 33.0% 35.0% 29.2% 27.3% 27.5% 30.1% 31.0%
</TABLE>
<TABLE>
<CAPTION>
1992 1993 1994 1995 1996 1997 1998 AVERAGE
------- -------- -------- -------- -------- -------- ---------- -------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Textiles:
- ---------
Total Number of Net Acquisition
Announcements 18 32 22 25 27 33 26
Total Dollar Value Paid [1] $467 $1,244 $484 $538 $886 $2,717 $3,909
Average Premium Paid Over Market 31.0% 2.8% NA 24.4% 21.2% 8.8% 22.2% 18.4%
</TABLE>
- ------------
[1] Only includes transactions with a publicly disclosed purchase price. All
statistics are based on the stock closing price one day prior to announcement.
Source: Mergerstat Review
<PAGE> 62
ROBINSON-HUMPHREY
PROJECT PALMETTO
IMPLIED VALUATION ANALYSIS UTILIZING SELECTED PREMIUMS FROM
M&A TRANSACTIONS IN GENERAL
- --------------------------------------------------------------------------------
(DOLLARS IN THOUSANDS EXCEPT SHARE PRICE)
<TABLE>
<CAPTION>
1992-98 AVERAGE VALUE
--------------------- IMPLIED
PREMIUM 1 IMPLIED EQUITY
PALMETTO DAY PRIOR EQUITY VALUE PER
VALUATION PARAMETER VALUE TO ANNOUNCEMENT VALUE SHARE [2]
- -------------------------------------------- -------- --------------- ------ ---------
<S> <C> <C> <C> <C>
Stock Price 1 Day Prior to Announcement [1] $5.13 39.9% $52,792 $7.17
<CAPTION>
1992-98 MEDIAN VALUE
-------------------- IMPLIED
PREMIUM 1 IMPLIED EQUITY
PALMETTO DAY PRIOR EQUITY VALUE PER
VALUATION PARAMETER VALUE TO ANNOUNCEMENT VALUE SHARE [2]
- -------------------------------------------- -------- --------------- ------ ---------
<S> <C> <C> <C> <C>
Stock Price 1 Day Prior to Announcement [1] $5.13 31.0% $49,423 $6.71
</TABLE>
- -----------------------------------
[1] Assumes announcement date of 09/30/99.
[2] Based on 7,363,026 diluted shares outstanding as of September 15, 1999.
<PAGE> 63
ROBINSON-HUMPHREY
PROJECT PALMETTO
IMPLIED VALUATION ANALYSIS UTILIZING SELECTED PREMIUMS FROM
TEXTILE M&A TRANSACTIONS
- --------------------------------------------------------------------------------
(DOLLARS IN THOUSANDS EXCEPT SHARE PRICE)
<TABLE>
<CAPTION>
1992-98 AVERAGE VALUE
--------------------- IMPLIED
PREMIUM 1 IMPLIED EQUITY
PALMETTO DAY PRIOR EQUITY VALUE PER
VALUATION PARAMETER VALUE TO ANNOUNCEMENT VALUE SHARE [2]
- -------------------------------------------- ---------- --------------- ------- ---------
<S> <C> <C> <C> <C>
Stock Price 1 Day Prior to Announcement [1] $5.13 18.4% $44,679 $6.07
</TABLE>
- -------------------------------
[1] Assumes announcement date of 09/30/99.
[2] Based on 7,363,026 diluted shares outstanding as of September 15, 1999.
<PAGE> 64
Robinson-Humphrey
PROJECT PALMETTO
DISCOUNTED CASH FLOW ANALYSIS
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Projected Years Ending June, [1]
----------------------------------------------------
PROJECTED CASH FLOWS 1999 2000 2001 2002 2003 2004
- ------------------------------------------------------------------ ----------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net Sales $119,660 $119,500 $125,525 $131,000 $136,714 $142,677
Cost of Goods Sold 72,377 69,100 71,627 74,080 78,125 81,533
--------- ----------------------------------------------------
Gross Profit 47,283 50,400 53,898 56,920 58,588 61,144
Operating Expenses 30,165 29,350 30,400 31,700 33,257 34,707
EBITDA 17,118 21,050 23,498 25,220 25,332 26,436
% of Net Sales 14.3% 17.6% 18.7% 19.3% 18.5% 18.5%
Depreciation and Amortization Expense 3,994 4,000 4,000 4,000 4,000 4,000
--------- ----------------------------------------------------
Operating Income 13,124 17,050 19,498 21,220 21,332 22,436
% of Net Sales 11.0% 14.3% 15.5% 16.2% 15.6% 15.7%
Other Non-Operating Expense 0 0 0 0 0 0
--------- ----------------------------------------------------
Earnings Before Interest and Taxes $13,124 $17,050 $19,498 $21,220 $21,332 $22,436
Effective Tax Rate 39.0% 39.0% 39.0% 39.0% 39.0% 39.0%
--------- ----------------------------------------------------
CASH SOURCES
Earnings Before Interest and After Tax $8,006 $10,401 $11,894 $12,944 $13,012 $13,686
Depreciation and Amortization Expense 3,994 4,000 4,000 4,000 4,000 4,000
Amortization of Intangibles (Transaction Costs) 0 0 0 0 0 0
Other Cash Sources 0 0 0 0 0 0
--------- ----------------------------------------------------
TOTAL SOURCES $12,000 $14,401 $15,894 $16,944 $17,012 $17,686
========= ====================================================
CASH USES
Capital Expenditures $5,173 $5,700 $2,000 $2,000 $2,000 $2,000
Increase (Decrease) in Current Assets Except Cash (989) 1,698 1,000 1,000 2,499 2,770
(Increase) Decrease in Current Liabilities Except
Debt 4,562 802 (500) (300) (730) (834)
--------- ----------------------------------------------------
Increase (Decrease) in Working Capital 3,573 2,500 500 700 1,769 1,935
TOTAL USES $8,746 $8,200 $2,500 $2,700 $3,769 $3,935
========= ====================================================
- ------------------------------------------------------------------------------------------------------------------------
FREE CASH FLOW $3,253 $6,201 $13,394 $14,244 $13,244 $13,751
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
DISCOUNTED PRESENT VALUE OF EQUITY
<TABLE>
<CAPTION>
PRESENT VALUE OF TERMINAL VALUE
AT YEAR 5 EBITDA MULTIPLES DISCOUNTED PRESENT VALUE OF EQUITY
DISCOUNT PRESENT VALUE OF ------------------------------- NET DEBT ----------------------------------
RATE FREE CASH FLOW 4.0X 5.5X 7.0X AT JULY 3, 1999[2] 4.0X 5.5X 7.0X
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
14.0% $40,343 $54,921 $75,517 $96,112 - $40,622 = $54,642 $ 75,357 $95,833
--------
16.0% $38,286 $50,347 $69,227 $88,107 - $40,622 = $48,011 $ 66,891 $85,771
--------
18.0% $36,385 $46,222 $63,556 $80,889 - $40,622 = $41,985 $ 59,319 $76,652
------------------------------------------------------------------------------------------------------------------
DISCOUNTED PRESENT VALUE OF EQUITY/SHARE [3]
-----------------------------------
4.0X 5.5X 7.0X
-----------------------------------
$7.42 $10.22 $13.02
-------
$6.52 $9.08 $11.65
-------
$5.70 $8.06 $10.41
-----------------------------------
</TABLE>
- ---------------------------
[1] Projections for 2000 through 2002 provided by the Company. Projections
for 2003 through 2004 assume 4.4% revenue growth and margins equal to the
average margins for fiscal 2000-2002.
[2] Net debt as of July 3, 1999.
[3] Based on 7,363,026 diluted shares outstanding as of September 15, 1999.
<PAGE> 65
- --------------------------------------------------------------------------------
PROJECT PALMETTO 30-SEP-99
BASE CASE PROJECTIONS 6:37 PM
($ IN THOUSANDS) SUMMARY PAGE
LBO ANALYSIS
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
SOURCES AND USES OF FUNDS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
% of Interest/
SOURCES Amount Total Div. Rate
- ------- ------ ----- ---------
<S> <C> <C> <C>
Excess Cash $1,671 1.5% N/A%
Revolver Borrowings 15,089 13.5% 8.7%
Senior Term Loan 55,000 49.3% 9.0%
Other Debt 0 0.0% 12.0%
Subordinated Debt 15,000 13.4% 12.0%
Seller Note 0 0.0% 12.0%
Other Debt 0 0.0% 12.0%
Management Common/Preferred 4,800 4.3% 12.0% [1]
Investor Common/Preferred 20,000 17.9% 12.0% [1]
-----------------------
TOTAL SOURCES 111,560 100.0%
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
USES
- ----
<S> <C>
Purchase Price of Equity $66,267
Refinance Existing Debt 42,293
Redeem Preferred Stock 0
Transaction Costs 3,000
Cap Ex Reserve 0
------------
TOTAL USES $111,560
EXCESS REVOLVER AVAILABILITY $9,911
</TABLE>
- --------------------------------------------------------------------------------
PURCHASE PRICE ANALYSIS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1999 2000
---- ----
<S> <C> <C>
Firm Value / EBITDA 6.3 5.1
Firm Value / EBITA 7.8 6.4
Firm Value/ EBITDA-Cap Ex 9.1 6.9
</TABLE>
- --------------------------------------------------------------------------------
OWNERSHIP AND RETURNS ANALYSIS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
IRR @ EBITDA MULTIPLES OF
------------------------------------
OWNERSHIP 4.0X 5.5X 7.0X
-------- ------------------------------------
<S> <C> <C> <C> <C>
Subordinated Debt 10.0% 16.7% 20.0% 23.0%
Management [2] 15.7% 19.4% 31.7% 40.5%
Investor Common/Preferred 65.3% 19.4% 31.7% 40.5%
Options 9.0% NM NM NM
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
KEY OPERATING STATISTICS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
HISTORICAL - JUNE, PROJECTED - JUNE,
------------------------------------------------------------------------------------------
1997 1998[3] 1999 2000 2001 2002 2003 2004
------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Annual Sales Growth (%) 3.9% 70.9% (4.7%) (0.1%) 5.0% 4.4% 4.4% 4.4%
Gross Margin (%) 37.9% 41.9% 39.5% 42.2% 42.9% 43.5% 42.9% 42.9%
EBITDA Margin (%) 18.2% 15.0% 14.3% 18.0% 19.1% 19.6% 18.9% 18.9%
EBIT Margin (%) 15.7% 11.8% 11.0% 14.3% 15.5% 16.2% 15.6% 15.8%
EBITDA/Total Interest NA NA 5.9x 2.6x 3.0x 3.5x 3.8x 4.3x
Senior Debt/(EBITDA-Cap Ex) NA NA 5.9x 4.5x 3.0x 2.5x 2.2x 1.9x
Total Debt/(EBITDA-Cap Ex) NA NA 7.1x 5.5x 3.7x 3.2x 2.9x 2.5x
</TABLE>
- --------------------------------------------------------------------------------
- --------------------------------
[1] Payable on Preferred only.
[2] Includes common and preferred equity.
[3] Represents pro forma results for the acquisition of Simplicity as if it had
occurred as of the beginning of fiscal 1998.
Robinson-Humphrey
<PAGE> 66
- --------------------------------------------------------------------------------
PROJECT PALMETTO 30-SEP-99
BASE CASE PROJECTIONS 6:37 PM
($ IN THOUSANDS) PAGE 1
INCOME STATEMENT SUMMARY
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
---------------------------------- --------------------------------------------------------
HISTORICAL YEAR ENDED JUNE, PROJECTED YEAR ENDING JUNE, [2]
---------------------------------- --------------------------------------------------------
1997 1998 [1] 1999 2000 2001 2002 2003 2004
---------------------------------- --------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net Sales $73,447 $125,518 $ 119,660 $ 119,500 $125,525 $131,000 $136,714 $142,677
% Growth 3.9% 70.9% (4.7)% (0.1)% 5.0% 4.4% 4.4% 4.4%
Cost of Goods Sold (excl. depr.) 45,624 72,960 72,377 69,100 71,627 74,080 78,125 81,533
---------------------------------------------------------------------------------------------
Gross Profit 27,823 52,558 47,283 50,400 53,898 56,920 58,588 61,144
% of Net Sales 37.9% 41.9% 39.5% 42.2% 42.9% 43.5% 42.9% 42.9%
SG&A Expenses (excl. depr. & amort.) 14,462 33,712 30,165 28,906 29,956 31,256 32,771 34,201
% of Net Sales 19.7% 26.9% 25.2% 24.1% 23.9% 23.9% 24.0% 24.0%
---------------------------------------------------------------------------------------------
EBITDA 13,361 18,846 17,118 21,494 23,942 25,664 25,817 26,943
% of Net Sales 18.2% 15.0% 14.3% 18.0% 19.1% 19.6% 18.9% 18.9%
Depreciation 1,760 3,301 3,278 3,300 3,300 3,300 3,300 3,300
---------------------------------------------------------------------------------------------
EBITA 11,601 15,545 13,840 18,194 20,642 22,364 22,517 23,643
Amortization 83 721 716 1,144 1,144 1,144 1,144 1,144
---------------------------------------------------------------------------------------------
EBIT 11,518 14,824 13,124 17,050 19,498 21,220 21,373 22,499
% of Net Sales 15.7% 11.8% 11.0% 14.3% 15.5% 16.2% 15.6% 15.8%
Other (Income)/Expense 0 0 0 0 0 0 0 0
Net Interest Expense 498 2,981 2,904 8,124 7,936 7,394 6,828 6,216
---------------------------------------------------------------------------------------------
Pre-Tax Income 11,020 11,843 10,220 8,926 11,562 13,826 14,545 16,283
---------------------------------------------------------------------------------------------
Net Income Before Preferred Dividend $ 4,999 $ 6,607 $ 7,988 $ 8,426 $9,486
===========================================================
Preferred Dividend Cash 2,760 2,760 2,760 2,760 2,760
-----------------------------------------------------------
Net Income $ 2,239 $ 3,847 $ 5,228 $ 5,666 $ 6,726
===========================================================
</TABLE>
- --------------------------
[1] Represents pro forma results for the acquisition of Simplicity as if it had
occurred at the beginning of fiscal 1998.
[2] Projections for 2000 through 2002 provided by the Company. Projections for
2003 through 2004 assume 4.4% revenue growth and margins equal to the
average margins for fiscal 2000-2002.
Robinson-Humphrey
<PAGE> 67
- --------------------------------------------------------------------------------
PROJECT PALMETTO 30-SEP-99
BASE CASE PROJECTIONS 6:37 PM
($ IN THOUSANDS) PAGE 2
PRO FORMA BALANCE SHEET
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-------------------------------------------------------
PURCHASE ADJUSTMENTS
ACTUAL ------------------------- PRO FORMA
07/03/99 FINANCING ACQUISITION 07/03/99
-------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Cash & Cash Equivalents $ 1,671 $ 109,889 $(111,560) $ 0
Accounts Receivable 22,009 22,009
Inventory 30,657 30,657
Prepaid Expenses 2,689 2,689
Other Current Assets 1,947 1,947
-------------------------------------------------------
Total Current Assets $ 58,973 $ 109,889 $(111,560) $ 57,302
Net PP&E $ 32,085 $ 32,085
Existing Goodwill & Other Intangibles 20,740 (20,740) 0
Capitalized Transaction Costs 0 3,000 3,000
Incremental Goodwill 0 18,465 18,465
Other Long Term Assets 1,581 1,581
-------------------------------------------------------
Total Assets $ 113,379 $ 109,889 $(110,835) $ 112,433
=======================================================
LIABILITIES & STOCKHOLDERS' EQUITY
Accounts Payable 5,314 5,314
Accrued Expenses 13,088 13,088
Other Current Liabilities 0 0
-------------------------------------------------------
Total Current Liabilities $ 18,402 $ 0 $ 18,402
Other Long Term Liabilities 4,882 4,882
Existing Long Term Debt $ 42,293 $ (42,293) $ 0
Revolver Borrowings 0 15,089 15,089
Senior Term Loan 0 55,000 55,000
Subordinated Debt 0 15,000 15,000
Seller Note 0 0 0
-------------------------------------------------------
Total Liabilities $ 65,577 $ 85,089 $ (42,293) $ 108,373
Preferred Stock 0 23,000 23,000
Common Stock 47,802 1,800 (68,542) (18,940)
-------------------------------------------------------
Total Liabilities & Stockholders' Equity $ 113,379 $ 109,889 $(110,835) $ 112,433
=======================================================
</TABLE>
Robinson-Humphrey
<PAGE> 68
- --------------------------------------------------------------------------------
PROJECT PALMETTO 30-SEP-99
BASE CASE PROJECTIONS 6:37 PM
($ IN THOUSANDS) PAGE 3
BALANCE SHEET
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------
HISTORICAL YEAR ENDED JUNE,
-------------------------------- PRO FORMA
1997 1998 1999 07/03/99
-----------------------------------------------
<S> <C> <C> <C> <C>
ASSETS
Cash & Cash Equivalents $ 490 $ 2,333 $ 1,671 $ 0
Accounts Receivable 11,747 22,755 22,009 22,009
Inventory 25,340 30,358 30,657 30,657
Prepaid Expenses 427 3,781 2,689 2,689
Other Current Assets 626 1,397 1,947 1,947
-----------------------------------------------
Total Current Assets $38,629 $ 60,624 $ 58,973 $ 57,302
Net PP&E $16,563 $ 29,761 $ 32,085 $ 32,085
Existing Goodwill & Other Intangibles 0 20,367 20,740 0
Capitalized Transaction Costs 0 0 0 3,000
Incremental Goodwill & Other Intangibles 0 0 0 18,465
Other Long Term Assets 1,367 4,940 1,581 1,581
-----------------------------------------------
Total Assets $56,559 $115,692 $113,379 $ 112,433
==============================================
LIABILITIES & STOCKHOLDERS' EQUITY
Accounts Payable $ 4,162 $ 7,562 $ 5,314 $ 5,314
Accrued Expenses 2,880 15,402 13,088 13,088
Other Current Liabilities 0 0 0 0
-----------------------------------------------
Total Current Liabilities $ 7,042 $ 22,964 $ 18,402 $ 18,402
Other Long Term Liabilities 535 5,468 4,882 4,882
Existing Long Term Debt $10,614 $ 45,170 $ 42,293 $ 0
Revolver Borrowings 0 0 0 15,089
Senior Term Loan 0 0 0 55,000
Subordinated Debt 0 0 0 15,000
Seller Note 0 0 0 0
-----------------------------------------------
Total Debt $10,614 $ 45,170 $ 42,293 $ 85,869
Preferred Stock 0 0 0 23,000
Common Stock 38,368 42,090 47,802 (18,940)
-----------------------------------------------
Total Liabilities & Stockholders' Equity $56,559 $115,692 $113,379 $ 112,433
==============================================
</TABLE>
<TABLE>
<CAPTION>
-------------------------------------------------------------
PROJECTED YEAR ENDING JUNE,
------------------------------------------------------------
2000 2001 2002 2003 2004
-------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS
Cash & Cash Equivalents $ 0 $ 0 $ 0 $ 0 $ 0
Accounts Receivable 22,500 23,000 23,500 24,264 25,322
Inventory 32,000 32,500 33,000 34,538 36,045
Prepaid Expenses 2,500 2,500 2,500 2,609 2,723
Other Current Assets 2,000 2,000 2,000 2,087 2,178
-------------------------------------------------------------
Total Current Assets $ 59,000 $ 60,000 $ 61,000 $ 63,499 $ 66,268
Net PP&E $ 34,485 $ 33,185 $ 31,885 $ 30,585 $ 29,285
Existing Goodwill & Other Intangibles 0 0 0 0 0
Capitalized Transaction Costs 2,594 2,189 1,783 1,377 971
Incremental Goodwill & Other Intangibles 17,727 16,988 16,249 15,511 14,772
Other Long Term Assets 700 700 700 700 700
-------------------------------------------------------------
Total Assets $ 114,506 $ 113,062 $ 111,617 $ 111,672 $111,997
=============================================================
LIABILITIES & STOCKHOLDERS' EQUITY
Accounts Payable $ 7,000 $ 7,500 $ 7,800 $ 8,068 $ 8,420
Accrued Expenses 10,600 10,600 10,600 11,062 11,545
Other Current Liabilities 0 0 0 0 0
-------------------------------------------------------------
Total Current Liabilities $ 17,600 $ 18,100 $ 18,400 $ 19,130 $ 19,964
Other Long Term Liabilities 3,800 3,800 3,000 3,000 3,000
Existing Long Term Debt $ 0 $ 0 $ 0 $ 0 $ 0
Revolver Borrowings 16,807 18,873 20,558 22,073 22,695
Senior Term Loan 55,000 47,143 39,286 31,429 23,571
Subordinated Debt 15,000 15,000 15,000 15,000 15,000
Seller Note 0 0 0 0 0
-------------------------------------------------------------
Total Debt $ 86,807 $ 81,016 $ 74,844 $ 68,502 $ 61,267
Preferred Stock 23,000 23,000 23,000 23,000 23,000
Common Stock (16,701) (12,854) (7,626) (1,960) 4,766
-------------------------------------------------------------
Total Liabilities & Stockholders' Equity $ 114,506 $ 113,062 $ 111,617 $ 111,672 $111,997
=============================================================
</TABLE>
Robinson-Humphrey
<PAGE> 69
- --------------------------------------------------------------------------------
PROJECT PALMETTO 30-SEP-99
BASE CASE PROJECTIONS 6:37 PM
($ IN THOUSANDS) PAGE 4
CASH FLOW STATEMENT
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------
PROJECTED YEAR ENDING JUNE,
------------------------------------------------------
2000 2001 2002 2003 2004
------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CASH FLOWS FROM OPERATING/INVESTING ACTIVITIES
Net Income Before Preferred Dividend $ 4,999 $ 6,607 $ 7,988 $ 8,426 $ 9,486
Items in Net Income Not Affecting Cash:
Existing Depreciation 3,300 3,300 3,300 3,300 3,300
Amortization of Transaction Costs 406 406 406 406 406
Amortization of Goodwill 739 739 739 739 739
Change in Net Working Capital (2,500) (500) (700) (1,769) (1,935)
(Increase)/Decrease in Other Long Term Assets 881 0 0 0 0
Cash Provided by (Used in) Operating/Investing Activities $ 1,042 $ 8,551 $ 8,932 $ 9,102 $ 9,995
- -----------------------------------------------------------------------------------------------------------------
Net Cash Available for Debt Repayment (Required Borrowing) $ 1,042 $ 8,551 $ 8,932 $ 9,102 $ 9,995
- -----------------------------------------------------------------------------------------------------------------
CASH FLOWS FROM FINANCING ACTIVITIES
Borrowings (Repayment) of Senior Term Loan $ 0 $(7,857) $(7,857) $(7,857) $ (7,857)
Additional Repayment of Senior Term Loan (Cash Flow Sweep) -- -- -- -- --
Borrowings (Repayment) of Other Debt 0 0 0 0 0
Borrowings (Repayment) of Subordinated Debt 0 0 0
Borrowings (Repayment) of Seller Note 0 0 0 0 0
Dividends on Preferred Stock (2,760) (2,760) (2,760) (2,760) (2,760)
Revolver Borrowings Funding 1,718 2,066 1,685 1,515 622
------------------------------------------------------
Net Cash Provided by (Used in) Financing Activities $(1,042) $(8,551) $(8,932) $(9,102) $(9,995)
- -----------------------------------------------------------------------------------------------------------------
Net Increase (Decrease) in Cash $ 0 $ 0 $ 0 $ 0 $ 0
- -----------------------------------------------------------------------------------------------------------------
Cash, Beginning of Period 0 0 0 0 0
======================================================
Cash, End of Period $ 0 $ 0 $ 0 $ 0 $ 0
======================================================
</TABLE>
Robinson-Humphrey
<PAGE> 70
- --------------------------------------------------------------------------------
PROJECT PALMETTO 30-SEP-99
BASE CASE PROJECTIONS 6:37 PM
($ IN THOUSANDS) PAGE 5
DEBT AMORTIZATION & INTEREST EXPENSE SCHEDULE
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
---------------------------------------------------------
PROJECTED YEAR ENDING JUNE,
---------------------------------------------------------
2000 2001 2002 2003 2004
---------------------------------------------------------
<S> <C> <C> <C> <C> <C>
DEBT AMORTIZATION & INTEREST EXPENSE
Beginning of Period Balance $ 15,089 $ 16,807 $ 18,873 $ 20,558 $ 22,073
Borrowings/(Repayments) 1,718 2,066 1,685 1,515 622
---------------------------------------------------------
End of Period Balance $ 16,807 $ 18,873 $ 26,558 $ 22,073 $ 22,695
Interest Expense $ 1,387 $ 1,552 $ 1,715 $ 1,854 $ 1,947
SENIOR TERM LOAN
Beginning of Period Balance $ 55,000 $ 55,000 $ 47,143 $ 39,286 $ 31,429
Borrowings / Repayments 0 (7,857) (7,857) (7,857) (7,857)
Repayment from Cash Sweep 0 0 0 0 0
---------------------------------------------------------
End of Period Balance $ 55,000 $ 47,143 $ 39,286 $ 31,429 $ 23,571
Interest Expense 4,936 4,584 3,878 3,173 2,468
OTHER DEBT
Beginning of Period Balance $ 0 $ 0 $ 0 $ 0 $ 0
Borrowings / Repayments 0 0 0 0 0
---------------------------------------------------------
End of Period Balance $ 0 $ 0 $ 0 $ 0 $ 0
Interest Expense $ 0 $ 0 $ 0 $ 0 $ 0
SUBORDINATED DEBT
Borrowings / Repayments 0 0 0 0 0
---------------------------------------------------------
End of Period Balance $ 15,000 $ 15,000 $ 15,000 $ 15,000 $ 15,000
Interest Expense $ 1,800 $ 1,800 $ 1,800 $ 1,800 $ 1,800
- -----------------------------------------------------------------------------------------------
Pro Forma Interest Expense $ 8,124 $ 7,956 $ 7,394 $ 6,828 $ 6,216
- -----------------------------------------------------------------------------------------------
PREFERRED STOCK
Beginning of Period Balance $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000
Dividend Payment Cash 2,760 2,760 2,760 2,760 2,760
Borrowings / Repayments 0 0 0 0 0
---------------------------------------------------------
End of Period Balance $ 23,000 $ 23,000 $ 23,000 $ 23,000 $ 23,000
</TABLE>
Robinson-Humphrey
<PAGE> 71
- --------------------------------------------------------------------------------
PROJECT PALMETTO 30-SEP-99
BASE CASE PROJECTIONS 6:37 PM
($ IN THOUSANDS) PAGE 6
DEPRECIATION & AMORTIZATION SCHEDULE
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
---------------------------------------------------
PROJECTED YEAR ENDING JUNE,
---------------------------------------------------
AMOUNT YEARS 2000 2001 2002 2003 2004
------ ----- ---------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
TOTAL EXISTING DEPRECIATION $3,300 $3,300 $3,300 $3,300 $3,300
GOODWILL AMORTIZATION
Pro Forma Goodwill 18,465 25 739 739 739 739 739
Senior Debt $ 900 7 129 129 129 129 129
Subordinated Debt 300 15 20 20 20 20 20
Advisory 1,000 7 143 143 143 143 143
Lender 250 7 36 36 36 36 36
Legal/Accounting 350 7 50 50 50 50 50
Other 200 7 29 29 29 29 29
-------- ---------------------------------------------------
Total Transaction Costs $ 3,000 $ 406 $ 406 $ 406 $ 406 $ 406
- ---------------------------------------------------------------------------------------------------------------
Pro Forma Depreciation & Amortization $4,444 $4,444 $4,444 $4,444 $4,444
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
Robinson-Humphrey
<PAGE> 72
- --------------------------------------------------------------------------------
PROJECT PALMETTO 30-SEP-99
BASE CASE PROJECTIONS 6:37 PM
($ IN THOUSANDS) PAGE 7
WORKING CAPITAL ANALYSIS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
HISTORICAL YEAR ENDED JUNE, PROJECTED YEAR ENDING JUNE,
--------------------------------------------------------------------------------------
1997 1998 1999 2000 2001 2002 2003 2004
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
WORKING CAPITAL ANALYSIS
Average Receivable Days -- 50.2 68.3 68.0 66.2 64.8 64.8 64.8
Average Inventory Days -- 139.3 153.9 165.5 164.3 161.4 161.4 161.4
Other Current Assets (% of Net Sales) 0.9% 1.1% 1.6% 1.7% 1.6% 1.5% 1.5% 1.5%
Average Payable Days -- 29.3 32.5 32.5 36.9 37.7 37.7 37.7
Other Current Liab. (% of Net Sales) 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0%
Net Working Capital (% of Net Sales) 42.3% 28.1% 32.5% 34.6% 33.4% 32.5% 32.5% 32.5%
Accounts Receivable $11,747 $22,755 $22,009 $22,500 $23,000 $23,500 $24,264 $25,322
Inventory 25,340 30,358 30,657 32,000 32,500 33,000 34,538 36,045
Prepaid Expenses 427 3,781 2,689 2,500 2,500 2,500 2,609 2,723
Other Current Assets 626 1,397 1,947 2,000 2,000 2,000 2,087 2,178
Accounts Payable 4,162 7,562 5,314 7,000 7,500 7,800 8,068 8,420
Accrued Expenses 2,880 15,402 13,088 10,600 10,600 10,600 11,062 11,545
Other Current Liabilities -- -- -- -- -- -- -- --
--------------------------------------------------------------------------------------
Total Working Capital $31,098 $35,327 $38,900 $41,400 $41,900 $42,600 $44,369 $46,304
======================================================================================
Change in Working Capital -- $ 4,229 $ 3,573 $ 2,500 $ 500 $ 700 $ 1,769 $ 1,935
======================================================================================
</TABLE>
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------------
EFFECTIVE PROJECTED YEAR ENDING JUNE,
ADVANCE PRO FORMA ---------------------------------------------------
RATE 07/03/99 2000 2001 2002 2003 2004
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
REVOLVER AVAILABILITY
Availability:
Accounts Receivable 76.5% $17,213 $17,595 $17,978 $18,562 $19,372
Inventory 40.0% 12,800 13,000 13,200 13,815 14,418
----------------------------------------------------------------
$25,000 $30,013 $30,595 $31,178 $32,377 $33,790
- ----------------------------------------------------------------------------------------------------------------------------
Excess Revolver Availability $ 9,911 $13,206 $11,722 $10,620 $10,304 $11,095
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
Robinson-Humphrey
<PAGE> 73
- --------------------------------------------------------------------------------
PROJECT PALMETTO 30-SEP-99
BASE CASE PROJECTIONS 6:37 PM
($ IN THOUSANDS) PAGE 8
FINANCIAL RATIO ANALYSIS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
------------------------------------------------------------------
PROJECTED YEAR ENDING JUNE,
------------------------------------------------------------------
2000 2001 2002 2003 2004
------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
SUMMARY OF KEY LEVELS
EBIT $ 17,050 $ 19,498 $ 21,220 $ 21,373 $22,499
EBITDA 21,494 23,942 25,664 25,817 26,943
Increase (Decrease) in Working Capital 2,500 500 700 1,769 1,935
Capital Expenditures 5,700 2,000 2,000 2,000 2,000
Cash Taxes Payable 3,928 4,956 5,839 6,119 6,797
------------------------------------------------------------------
Senior Interest Expense 6,324 6,136 5,594 5,028 4,416
Total Net Interest (Income) Expense 8,124 7,936 7,394 6,828 6,216
Principal Repayment -- 7,857 7,857 7,857 7,857
Total Debt $ 86,807 $ 81,016 $ 74,844 $ 68,502 $61,267
Preferred Stock [1] 23,000 23,000 23,000 23,000 23,000
Common Equity $ (16,701) $(12,854) $ (7,626) $ (1,960) $ 4,766
- -----------------------------------------------------------------------------------------------------------------------
COVERAGE RATIOS
EBITDA/Senior Interest 3.4x 3.9x 4.6x 5.1x 6.1x
EBITDA/Total Interest 2.6 3.0 3.5 3.8 4.3
(EBITDA - Cap Ex)/(Total Interest + Principal Repayment) 1.9 1.4 1.6 1.6 1.8
(EBITDA-Cap Ex)/Senior Interest 2.5x 3.6x 4.2x 4.7x 5.6x
(EBITDA-Cap Ex)/Total Interest 1.9 2.8 3.2 3.5 4.0
3.3x 2.8x 2.3x 2.1x 1.7x
Total Debt/EBITDA 4.0 3.4 2.9 2.7 2.3
Total Debt/(EBITDA - Cap Ex) 5.5 3.7 3.2 2.9 2.5
Total Debt/Equity 13.8 8.0 4.9 3.3 2.2
Senior Debt/Total Capital 77.1% 72.4% 66.3% 59.8% 52.0%
Total Debt/Total Capital 93.2% 88.9% 83.0% 76.5% 68.8%
Senior Debt as % of Original Senior Debt 102.5% 94.2% 85.4% 76.3% 66.0%
Total Debt as % of Original Total Debt 102.0% 95.2% 88.0% 80.5% 72.0%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
- --------------------------
[1] Assumed to be converted into common equity upon exit.
Robinson-Humphrey
<PAGE> 74
- --------------------------------------------------------------------------------
PROJECT PALMETTO 30-SEP-99
BASE CASE PROJECTIONS 6:37 PM
($ IN THOUSANDS) PAGE 9
SUMMARY RETURN ANALYSIS
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
TERMINAL VALUE
-------------------------------------------
2004
-------------------------------------------
4.0X 5.5X 7.0X
-------------------------------------------
<S> <C> <C> <C>
EBITDA $ 26,943 $ 26,943 $ 26,943
EBITDA x Multiple $107,772 $148,186 $188,601
Less: Debt $ 61,267 $ 61,267 $ 61,267
Less: Preferred Stock (1) 0 0 0
Plus: Excess Cash 0 0 0
Plus: Strike Proceeds 2,728 2,728 2,728
-------------------------------------------
Value of Common Stock 49,233 89,648 130,062
</TABLE>
<TABLE>
<CAPTION>
DILUTION TABLE
-------------------------------------------
IRR
-------------------------------------------
4.0X 5.5X 7.0X
-------------------------------------------
<S> <C> <C> <C>
Subordinated 16.7% 20.0% 23.0%
Management (2) 19.4% 31.7% 40.5%
Investor Common/Preferred 19.4% 31.7% 40.5%
Options NM NM NM
-------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
OWNERSHIP TABLE
-------------------------------------------
OWNERSHIP
-------------------------------------------
4.0X 5.5X 7.0X
-------------------------------------------
<S> <C> <C> <C>
Subordinated 10.0% 10.0% 10.0%
Management (2) 15.7% 15.7% 15.7%
Investor Common/Preferred 65.3% 65.3% 65.3%
Options 9.0% 9.0% 9.0%
-------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
VALUE
-------------------------------------------
OPTIONS
-------------------------------------------
4.0X 5.5X 7.0X
-------------------------------------------
<S> <C> <C> <C>
Gross Value 4,431 8,068 11,706
Strike Price 2,728 2,728 2,728
-------------------------------------------
Net Value 1,703 5,340 8,978
</TABLE>
<TABLE>
<CAPTION>
-----------------------------------------------
PRE- FULLY-
INITIAL OPTIONS WARRANTS WARRANTS DILUTED
-----------------------------------------------
<S> <C> <C> <C> <C>
4.0X EBITDA
Subordinated 0.0% NA 0.0% 10.0% 10.0%
Management (2) 19.4% 0.0% 17.4% -1.7% 15.7%
Investor Common/Preferred 80.6% 0.0% 72.6% -7.3% 65.3%
Options 8.0% 0.0% 10.0% -1.0% 9.0%
-----------------------------------------------
Total 100.0% 0.0% 100.0% 0.0% 100.0%
5.5X EBITDA
Subordinated 0.0% 10.0% 10.0%
Management (2) 17.4% -1.7% 15.7%
Investor Common/Preferred 72.6% -7.3% 65.3%
Options 10.0% -1.0% 9.0%
------------------------------
Total 100.0% 0.0% 100.0%
==============================
7.0X EBITDA
Subordinated 0.0% 10.0% 10.0%
Investor Common/Preferred 72.6% -7.3% 65.3%
Options 10.0% -1.0% 9.0%
------------------------------
Total 100.0% 0.0% 100.0%
==============================
</TABLE>
Robinson-Humphrey
- ----------------------
(1) Assumed to be converted into common equity upon exit.
(2) Includes common and preferred equity.
<PAGE> 75
- --------------------------------------------------------------------------------
PROJECT PALMETTO 30-SEP-99
BASE CASE PROJECTIONS 6:37 PM
($ IN THOUSANDS) PAGE 10
RETURN ANALYSIS - TERMINAL EBITDA MULTIPLE OF 4.0X
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------
PROJECTED YEAR ENDING JUNE,
---------------------------------------------------
AT CLOSING 2000 2001 2002 2003 2004
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EBITDA $ 17,118 $ 21,494 $22,942 $ 25,664 $ 25,817 $ 26,943
Terminal EBITDA Multiple 6.4 4.0 4.0 4.0 4.0 4.0
-----------------------------------------------------------------
Terminal Enterprise Value $109,889 $ 85,977 $95,769 $102,657 $103,268 $107,772
Less:
Revolver Borrowings 15,089 16,807 18,873 20,558 22,073 22,695
Senior Term Loan 55,000 55,000 47,143 39,286 31,429 23,571
Seller Note 0 0 0 0 0 0
-----------------------------------------------------------------------
Total Debt 85,089 86,807 81,016 74,844 68,502 61,267
Plus: Excess Cash 0 0 0 0 0 0
Plus: Strike Proceeds 0 2,728 2,728 2,728 2,728 2,728
- -------------------------------------------------------------------------------------------
Equity Value $ 24,800 $ 1,899 $17,482 $ 30,542 $ 37,494 $ 49,233
- -------------------------------------------------------------------------------------------
Less: Preferred Stock (1) 0 0 0 0 0
---------------------------------------------------
Net Sales Proceeds $ 1,899 $17,482 $ 30,542 $ 37,494 $ 49,233
===================================================
</TABLE>
<TABLE>
<CAPTION>
------
EQUITY ----------------------------------------------------------------- IRR
% 07/03/99 2000 2001 2002 2003 2004 %
----------------------------------------------------------------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
SUBORDINATED DEBT
Principal $(15,000) $ 0 $ 0 $ 0 $ 0 $ 15,000
Interest 1,800 1,800 1,800 1,800 1,800
Equity Ownership 10.0% 4,923
-----------------------------------------------------------------
$(15,000) $ 1,800 $ 1,800 $ 1,800 $ 1,800 21,723 16.7%
INVESTOR COMMON/PREFERRED 65.3% $(20,000) $ 2,226 $ 2,226 $ 2,226 $ 2,226 $ 34,386 19.4%
-----------------------------------------------------------------
MANAGEMENT (2) 15.7% $ (4,801) $ 534 $ 534 $ 534 $ 534 $ 8,253 19.4%
-----------------------------------------------------------------
OPTIONS 9.0% $ 0 $ 0 $ 0 $ 0 $ 0 $ 1,703 NM
------
</TABLE>
Robinson-Humphrey
- ------------------------
(1) Assumed to be converted into common equity upon exit.
(2) Includes common and preferred equity.
<PAGE> 76
- --------------------------------------------------------------------------------
PROJECT PALMETTO 30-SEP-99
BASE CASE PROJECTIONS 6:37 PM
($ IN THOUSANDS) PAGE 11
RETURN ANALYSIS - TERMINAL EBITDA MULTIPLE OF 5.5X
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------
PROJECTED YEAR ENDING JUNE,
---------------------------------------------------
AT CLOSING 2000 2001 2002 2003 2004
-----------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
EBITDA $ 17,118 $ 21,583 $ 24,031 $ 25,753 $ 25,914 $ 27,044
Terminal EBITDA Multiple 6.4 5.5 5.5 5.5 5.5 5.5
-----------------------------------------------------------------
Terminal Enterprise Value $109,889 $118,219 $131,683 $141,154 $141,993 $148,186
Less:
Revolver Borrowings 15,089 16,807 18,873 20,558 22,073 22,695
Senior Term Loan 55,000 55,000 47,143 39,286 31,429 23,571
Seller Note 0 0 0 0 0 0
-----------------------------------------------------------------------
Total Debt 85,089 86,807 81,016 79,844 68,502 61,267
Plus: Excess Cash 0 0 0 0 0 0
Plus: Strike Proceeds 0 2,728 2,728 2,728 2,728 2,728
- -------------------------------------------------------------------------------------------
Equity Value $ 24,800 $ 34,140 $ 53,395 $ 69,038 $ 76,219 $ 89,648
- -------------------------------------------------------------------------------------------
Less: Preferred Stock (1) 0 0 0 0 0
---------------------------------------------------
Net Sales Proceeds 34,140 53,395 $ 69,038 $ 76,219 $ 89,648
===================================================
</TABLE>
<TABLE>
<CAPTION>
------
EQUITY ----------------------------------------------------------------- IRR
% 07/03/99 2000 2001 2002 2003 2004 %
----------------------------------------------------------------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
SUBORDINATED DEBT
Principal $(15,000) $ 0 $ 0 $ 0 $ 0 $ 15,000
Interest 1,800 1,800 1,800 1,800 1,800
Equity Ownership 10.0% 8,965
-----------------------------------------------------------------
$(15,000) $ 1,800 $ 1,800 $ 1,800 $ 1,800 25,765 20.0%
-----------------------------------------------------------------
INVESTOR COMMON/PREFERRED 65.3% $(20,000) $ 2,226 $ 2,226 $ 2,226 $ 2,226 $ 60,785 31.7%
-----------------------------------------------------------------
MANAGEMENT (2) 15.7% $ (4,800) $ 534 $ 534 $ 534 $ 534 $ 14,590 31.7%
OPTIONS 9.0% $ 0 $ 0 $ 0 $ 0 $ 0 $ 5,340 NM
------
</TABLE>
Robinson-Humphrey
- ---------------------------
(1) Assumed to be converted into common equity upon exit.
(2) Includes common and preferred equity.
<PAGE> 77
- --------------------------------------------------------------------------------
PROJECT PALMETTO 30-SEP-99
BASE CASE PROJECTIONS 6:37 PM
($ IN THOUSANDS) PAGE 12
RETURN ANALYSIS - TERMINAL EBITDA MULTIPLE OF 7.0X
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
-----------------------------------------------------------------
PROJECTED YEAR ENDING JUNE,
---------------------------------------------------
AT CLOSING 2000 2001 2002 2003 2004
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<S> <C> <C> <C> <C> <C> <C>
EBITDA $ 17,118 $ 21,494 $ 23,942 $ 25,664 $ 25,817 $ 26,943
Terminal EBITDA Multiple 6.4 7.0 7.0 7.0 7.0 7.0
-----------------------------------------------------------------
Terminal Enterprise Value $109,889 $150,460 $167,596 $179,650 $180,718 $188,601
Less:
Revolver Borrowings 15,089 16,807 18,873 20,588 22,073 22,695
Senior Term Loan 55,000 55,000 47,143 39,286 31,429 23,571
Seller Note 0 0 0 0 0 0
-----------------------------------------------------------------------
Total Debt 85,089 86,807 81,016 74,844 68,502 61,267
Plus: Excess Cash 180 0 0 0 0 0
Plus: Strike Proceeds 0 2,728 2,728 2,728 2,728 2,728
- -------------------------------------------------------------------------------------------
Equity Value $ 24,800 $ 66,382 $ 89,309 $107,535 $114,944 $130,062
- -------------------------------------------------------------------------------------------
Less: Preferred Stock (1) 0 0 0 0 0
---------------------------------------------------
Net Sales Proceeds $ 66,382 $ 89,309 $ 107,535 $114,944 $130,062
===================================================
</TABLE>
<TABLE>
<CAPTION>
------
EQUITY ----------------------------------------------------------------- IRR
% 07/03/99 2000 2001 2002 2003 2004 %
----------------------------------------------------------------- ------
<S> <C> <C> <C> <C> <C> <C> <C>
SUBORDINATED DEBT
Principal $(15,000) $ 0 $ 0 $ 0 $ 0 $ 15,000
Interest 1,800 1,800 1,800 1,800 1,800
Equity Ownership 10.0% 13,006
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$(15,000) $ 1,800 $ 1,800 $ 1,800 $ 1,800 29,806 23.0%
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INVESTOR COMMON/PREFERRED 65.3% $(20,000) $ 2,226 $ 2,226 $ 2,226 $ 2,226 $ 87,184 40.5%
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MANAGEMENT (2) 15.7% $ (4,800) $ 534 $ 534 $ 534 $ 534 $ 20,926 40.5%
OPTIONS 9.0% $ 0 $ 0 $ 0 $ 0 $ 0 $ 8,978 NM
------
</TABLE>
Robinson-Humphrey
- -----------------
(1) Assumed to be converted into common equity upon exit.
(2) Includes common and preferred equity.
