XYZ - BAR - FY14 Period 6

CORPORATION Business Analyst Report

COMPANY XYZFor the 6-Month Period Ended March 31, 2014

SUMMARY

1A: Reporting Period Summary

1B: Analysis of Financial Results and Forecast

1C: Key Metrics MTD Bud Var FYTD Bud Var

Revenue 19,903,877 19,086,295 4.3% 99,616,001 99,729,515 -0.1%

EBITDA 771,144 760,758 1.4% 2,318,560 2,600,832 -10.9%

EBITDA Margin 3.9% 4.0% -2.8% 2.3% 2.6% -10.8%

DSO 41 40 0.5% Bud = PY

Free Cash flow (2,124,841) 1,469,697 -244.6%

ROE 17.4% 20.1% -13.3%

Capex Spend 444,288 1,639,780 72.9%

* In March, revenues exceed budget by $0.8 million or 4.3% (Fig. 1C). The gross margin of 10.7% was on par with budget (Fig. 3D & 4A).EBITDA exceeded budget by $0.01 million, or 1.4%, a result that could have been better were it not for rising SG&A expenses (Fig. 3E). * FYTD, revenues of $99.6 million were on par with budget (Fig. 1C). The gross margin of 9.9% exceeded budget of 9.8% and prior year of9.0% (Fig. 3D & 4A). EBITDA was below budget by $0.3 million, or 10.9%, due to high SG&A expenses (Fig. 1C & 3E). * To improve performance, management has begun multiple initiatives to grow revenue and reduce indirect costs over the next 18months. From the analyst’s perspective, the risk is that the expected timeline for executing on these all initiatives is too aggressive given that resources are already stretch thinly. In addition, management is getting pushback from NDC on high SG&A spending. The analyst FYE projection is for SG&A to exceed budget by $1.7 million. Some initiatives—making 401(k) contributions more competitive and increasing employee training, for instance—would increase costs further, but XYZ may not have sufficient funds to carry them out.* In April, NMS wired $1.425 million to the contractor to start building the restaurant at the new UAA sports arena.* DSO was 41 days (Fig 2G). Management expects to increase the level of automation in the billing process which should reduce DSO.*FCF was negative $2.4 million (Fig. 2D), driven by net income of $1.8 million (Fig. 4A), depreciation of $0.5 million, capex spend of $0.4million (Fig. 2D), and an increase in working capital of $4.0 million (Fig. 5A). * The outlook for FY14 is good. XYZ is expected to exceed the revenue target but underperform on EBITDA. The analyst's projection ismore conservative than management's regarding profitability due to the rate of increase in SG&A.

FYTD, XYZ revenues tracked closely with budget (Fig. 3C), while the gross margin exceeded budget and prior year (Fig. 3D). SinceDecember the gross margin has increased significantly. In particular, SEC and STF have shown noticeable improvement. On the downside, EBITDA significantly lagged budget. The key driver for the underperformance was an increase in SG&A. The increase included $1.5 million of indirect expenses attributable to higher executive management costs, the facility consolidation, a PMO, severance payments, and increased employee participation in the health plan. Simultaneously, there were offsetting expense reductions in STF leadership, IT costs, and workman’s comp and 401(k) accruals. The net effect FYTD was a $1.0 million increase over FY13 (Fig. 3E & 4A). Division specific performance was as follows:

* CMS has had a stellar year so far thanks to the strong performance of the BP North Slope contracts. EBITDA of $4.2 million exceededbudget by $1.1 million or 36.9%, the highest among the divisions (Fig. 3C). On the downside, new business revenue has not materialized. However, XYZ has invested in leadership capacity (VPO and two managers), which management believes will result in new contracts. Inthe long-term, CMS is working to increase revenues from other contracts to reduce the risk of being so heavily dependent upon BP. * FFM’s revenues and EBITDA have lagged budget FYTD (Fig. 3C). On the upside, gross margins have improved over the past four months,and FFM has signed several contracts that management believes will add material earnings in this and future years . *LDG was ahead of budget for revenue and EBITDA (Fig. 3C), and FYE EBITDA is expected to reach $1.8 million vs. budget of $1.6 million.The Faribanks property is the only one that has experienced operational and financial challanges.* STF’s revenues and EBITDA have lagged budget FYTD (Fig. 3C). However, management has pointed a new leader who has successfullytransformed the division over the past five months. STF's FYE EBITDA is expected to exceed budget by over 30% (Fig. 3G). Once STF has a strong operation in AK, it will seek to provide staffing services to L48 clients again.* SEC revenues and EBITDA have lagged budget FYTD (Fig. 3C). The main challenges have been the lack of new business revenue (Fig. 3F)and unprofitable L48 contracts. Management is working with Sodexo to ensure that new bids are competitive and existing contracts with P&G are renegotiated or terminated. On the upside, DVS center is gaining traction, and management projects that the investment will break even in September 2014, a delay of one year compared to the original business case.

The growth in SG&A remains a concern. By FYE, SG&A is likely to reach $14.6 million (Fig. 4B) vs. budget of 12.9 million vs. FY13 of $11.8 million. This increase will reduce profitability. The FYE EBITDA forecast is the same as last month: $5.7 million vs. budget of $6.4 million, with a margin of 2.8% vs. budget of 3.2%.

XYZ - BAR - FY14 Period 6 Print

date: 4/25/2014 7:43 AM Page 1 of 10

COMPANY Business Analyst Report

NANA Management Services

For the 6-Month Period Ended March 31, 2014

STANDARD CHARTS

47 46 4655

41 4140

69

Day

s

Monthly Days Sales Outstanding

DSO PY Avg Sodexo FY13 Avg

2G

1,470

820

(2,125)

444

1,751 2,244

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Monthly Revenue Variance to Budget %

14.3%

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PY Budget Actual Forecast

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6.9%

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Cumulative EBITDA & Margin %

PY Budget Actual Forecast PY Margin % Bud Margin % Actual/F'cast Margin %

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Cumulative $ Cumulative Margin %

20.1%

17.4%17.0%

15%16%16%

17%17%18%18%19%19%20%

20%21%

ROE

ROE

Bud YTD Act YTD FYE

2E

FYE capex is driven primarily by the investment in the UAA arena.

Print date: 4/25/2014 7:43 AM Page 2 of 10

CORPORATIONBusiness Analyst Report

NANA Management ServicesFor the 5-Month Period Ended February 28, 2014

CUSTOM CHARTS

March Revenue (in $ Thousands) March EBITDA (in $ Thousands) EBITDA Margin %ACT BUD PY ACT BudVar BudVar% PYVar PYVar% ACT BUD PY ACT BudVar BudVar% PYVar PYVar% ACT BUD PY ACT

CMS 7,740 6,970 6,649 770 11.0% 1,091 16.4% 753 618 419 135 21.9% 334 79.8% 9.7% 8.9% 6.3%FFM 4,685 4,544 4,453 140 3.1% 232 5.2% 566 630 522 (65) -10.3% 43 8.3% 12.1% 13.9% 11.7%LDG 1,709 1,712 1,694 (2) -0.1% 15 0.9% 76 74 52 2 2.3% 24 45.8% 4.4% 4.3% 3.1%STF 1,418 1,482 1,397 (64) -4.3% 21 1.5% 269 199 183 70 35.0% 86 46.8% 19.0% 13.5% 13.1%SEC 4,352 4,378 3,709 (26) -0.6% 643 17.3% 294 364 78 (70) -19.2% 217 278.9% 6.8% 8.3% 2.1%Other 0 - - 0 0.0% 0 0.0% (1,187) (1,125) (1,127) (62) -5.5% (60) -5.3%Total 19,904 19,086 17,902 818 4.3% 2,002 11.2% 771 761 127 10 1.4% 644 507.2% 3.9% 4.0% 0.7%

TRUE TRUE

FYTD Revenue (in $ Thousands) FYTD EBITDA (in $ Thousands) EBITDA Margin %ACT BUD PY ACT BudVar BudVar% PYVar PYVar% ACT BUD PY ACT BudVar BudVar% PYVar PYVar% ACT BUD PY ACT

CMS 39,526 36,672 35,076 2,854 7.8% 4,449 12.7% 4,176 3,050 2,802 1,127 36.9% 1,374 49.0% 10.6% 8.3% 8.0%FFM 23,772 24,781 22,727 (1,008) -4.1% 1,045 4.6% 2,786 3,145 2,959 (359) -11.4% (174) -5.9% 11.7% 12.7% 13.0%LDG 8,890 8,738 8,786 153 1.7% 104 1.2% 279 228 191 51 22.5% 88 46.0% 3.1% 2.6% 2.2%STF 7,092 7,809 6,311 (717) -9.2% 780 12.4% 892 945 532 (53) -5.6% 360 67.7% 12.6% 12.1% 8.4%SEC 20,336 21,730 18,409 (1,394) -6.4% 1,927 10.5% 856 1,593 764 (737) -46.3% 92 12.0% 4.2% 7.3% 4.2%Other - - 0 0 0.0% (0) -100.0% (6,670) (6,359) (5,979) (311) -4.9% (691) -11.6%Total 99,616 99,730 91,310 (114) -0.1% 8,306 9.1% 2,319 2,601 1,270 (282) -10.9% 1,049 82.6% 2.3% 2.6% 1.4%

TRUE TRUE

3C

FFM's revenue were down due to lower than expected new business revenue ($1.1M) and the delayed start-date of the Alaska Airlines Maintenance contract.

SEC's revenues were below budget driven by lower than expected new revenue from Lower 48 business. EBITDA was below budget because SEC incurred significant fixed expenses for the DVSC, while spending heavily on product installations to build capacity, and because existing P&G contracts resulted in losses.

3B

CMS posted above budget revenues and strong margins, driven by the BP North Slope contracts, and thus resulting in above budget EBITDA. SEC's revenues rebounded thanks to an increase in existing business revenues as well as new business revenues. EBITDA was stronger than in prior month but the Lower 48 contracts still lost money on average mainly due to high administrative costs.SG&A was significantly above budget and dragged down overall profitability.

Financial Performance Goals: * Grow revenue to $320M by FY18 (CAGR of 11.6%)* Achieve FY14 EBT of $5.5 million and EBT margin of 2.7%, growing to $13.1 million and 4.0% by FY18

3A


CORPORATIONBusiness Analyst Report

XYZ CompanyFor the 5-Month Period Ended February 28, 2014

CUSTOM CHARTS

Gross Margin %

Period Trend FYTD Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Total

CMS ACT 10.9% 14.6% 11.6% 10.3% 7.6% 11.8% 10.2% 10.9%BUD 8.8% 8.7% 8.7% 6.9% 8.3% 10.8% 9.4% 9.3% 9.4% 9.5% 8.9% 9.2% 8.1% 8.9%PY ACT 8.6% 13.0% 9.0% 7.7% 5.8% 9.5% 7.4% 10.2% 10.7% 10.5% 7.4% 11.3% 9.9% 9.3%

FFM ACT 11.9% 18.5% 12.0% 9.1% 9.7% 10.3% 12.1% 11.9%BUD 12.8% 14.9% 12.3% 13.5% 8.0% 13.0% 14.0% 12.2% 12.8% 10.7% 9.4% 9.0% 20.1% 12.8%PY ACT 13.4% 18.0% 13.7% 12.4% 8.6% 14.7% 12.2% 13.7% 15.6% 4.6% 7.6% 9.1% 14.1% 12.4%

LDG ACT 5.8% 5.4% 5.4% 6.2% 5.0% 6.1% 6.6% 5.8%BUD 5.6% 6.1% 5.1% 5.0% 4.7% 5.7% 6.7% 6.9% 9.1% 17.8% 17.9% 21.0% 13.2% 10.7%PY ACT 6.0% 6.6% 4.3% 6.6% 3.7% 6.5% 7.5% 12.3% 11.3% 19.3% 19.4% 19.2% 12.0% 11.4%

STF ACT 13.1% 15.2% 12.1% 6.3% 10.3% 13.3% 20.3% 13.1%BUD 14.0% 15.0% 13.7% 14.1% 12.2% 13.3% 15.2% 14.0% 14.5% 12.4% 13.5% 15.6% 13.1% 13.9%PY ACT 10.7% 10.9% 11.2% 8.5% 5.3% 12.0% 14.4% 13.3% 16.3% 10.1% 9.0% 18.6% 18.4% 12.6%

SEC ACT 5.1% 7.5% 4.8% 0.6% 2.6% 6.9% 7.7% 5.1%BUD 8.3% 10.0% 8.1% 6.7% 6.7% 9.2% 9.3% 8.4% 9.2% 7.6% 7.6% 9.8% 8.4% 8.4%PY ACT 5.7% 11.9% 7.6% 4.7% 5.6% 2.2% 3.4% 3.4% 1.8% 1.8% 4.5% 10.8% 10.2% 5.7%

Total ACT 9.9% 13.4% 9.9% 7.5% 6.9% 11.1% 10.7% 9.9%BUD 9.8% 10.9% 9.6% 8.9% 7.9% 10.8% 10.7% 10.0% 10.5% 10.5% 10.1% 11.1% 12.5% 10.3%PY ACT 9.0% 13.4% 9.5% 8.1% 5.8% 9.2% 8.3% 10.1% 10.8% 8.8% 8.5% 12.3% 11.8% 9.7%

3D

All divisions except CMS reported an increase in gross margin for the three-month period January to March. * CMS’ gross margin decreased 160 bps to 10.2% in March. The decrease wasmainly attributable to the BP North Slope contracts. Increasing labor expenses were also to blame. * FFM's gross margin increased 180 bps to 12.1% in March. The increase wasattributable to the Healthcare Food Services and Fairbanks Airport contracts. * SEC' gross margin rose due to new projects as well as the Exxon Fairweather, andBP North Slope contracts.* STF's gross margin increased thanks to the NSO Alyeska contract.

FYTD, SEC's gross margin remains low because the division is incurring significant fixed expenses for the Digital Video Surveillance Center, while spending heavily on product installations to build capacity. However, the margin has improved significantly since December, as the division's revenues have increased.

Primarily driven by the NSO Alyeska contract.


NANA DEVELOPMENT CORPORATION Business Analyst Report


CUSTOM CHARTS

SG&A

Oct Nov Dec Jan Feb Mar Total

ACT 889 1,138 1,230 1,199 1,356 1,256 7,068

BUD 990 1,057 1,247 1,018 994 1,139 6,445

PY ACT 845 1,000 1,233 902 957 1,170 6,107

SG&A, % of Revenue

Oct Nov Dec Jan Feb Mar Total

ACT 6.1% 7.4% 6.8% 8.1% 8.1% 6.3% 7.3%

BUD 6.2% 6.8% 6.9% 6.9% 6.1% 6.0% 6.6%

PY ACT 6.1% 6.9% 7.2% 6.9% 6.5% 6.5% 6.7%

(in $ '000)New Business Revenue New Business Revenue New Business Revenue

FYTD March

Mgmt.'s Projection for Fiscal Year

End

Mgmt.'s Projection for FYE made in

Budget Actual Var Budget Projection Var Dec Jan Feb Mar Change from Feb.CMS 750 - (750) 1,500 - (1,500) 550 - 1,523 - (1,523)FFM 1,696 848 (847) 3,391 4,145 754 2,165 2,759 3,552 4,145 593LDG - - 0 - - 0 - - - - 0STF 356 46 (310) 707 586 (121) 774 779 698 586 (112)SEC 2,618 717 (1,901) 5,349 3,468 (1,881) 2,848 2,530 3,035 3,468 433Total 5,420 1,611 (3,808) 10,947 8,199 (2,748) 6,338 6,067 8,808 8,199 (609)

Existing BusinessBudget Projection Var

CMS 73,753 76,965 3,212FFM 44,337 43,912 (425)LDG 19,019 19,838 819STF 15,080 14,323 (757)SEC 38,412 38,879 467Total 190,600 193,917 3,317

Total BusinessBudget Projection Var

CMS 75,253 76,965 1,712FFM 47,728 48,057 329LDG 19,019 19,838 819STF 15,787 14,909 (878)SEC 43,761 42,347 (1,414)Total 201,547 202,116 569

Management's Forecast for Fiscal Year End Operating Income

Forecast BUD PY ACT BudVar BudVar% PYVar PYVar%CMS 7,408 6,335 6,281 1,073 16.9% 1,127 17.9%FFM 5,054 5,448 4,615 (394) -7.2% 439 9.5%LDG 1,753 1,574 1,647 179 11.4% 106 6.5%STF 1,954 1,887 1,461 67 3.6% 493 33.7%SEC 2,573 3,061 1,513 (488) -15.9% 1,060 70.1%Other (13,640) (12,819) (10,695) (821) -6.4% (2,945) -27.5%Total 5,102 5,486 4,822 (384) -7.0% 280 5.8%

3F

The projection for CMS' existing business has increased materially as compared to budget, offsetting the decrease in CMS' new business revenue. The main drivers for the increase were BP North Slope ($2.9M) and PGI Conoco ($1.6M). It is worth noting that the projection does not include revenues for ENI after July/August because the client has indicated dissatisfaction with the pricing and is planning on finding another contractor. In addition, the revenue projection for the BP Anchorage Ops/Hsk contract has decreased by $1.3M since February because BP has indicated that it will not be doing as much capital project work in the building as originally thought.

Lodging has increased revenue projection based on projected strength of the market and pricing, mainly at the Anchorage Courtyard and University Lakes hotels.

FFM: Main drivers were Maniilaq Health FDS ($0.2M), Juneau SD Food Service ($0.2M), and NDC Benson Fac & Janitorial ($0.2M), offset by Northwest Arctic Borough SD FDS ($0.2M).

SEC: Lack of new business, including Purcell in Alaska ($0.9M) and P&G in the Lower 48 ($2.0M).

SEC: multiple upward adjustment, including Exxon ($0.4M), Repsol Services 2 ($0.4M), and PGI Conoco ($0.2M), partially offset by Benton Harbor (-$0.4M).

Overall, XYZ will likely exceed its revenue target for the FY14.

The lack of new business revenue poses a threat to long-term growth. However, XYZ appears tobe regaining some ground.

STF: multiple downward adjustment, including ANTHC Staffing ($0.7M), LEISNOI MSA ($0.3M) and contracts in Houston ($1.1M), partially offset by upward adjustments, including NSO Alyeska ($0.6M) and AK Frontier Constructors ($0.4M).

3E SG&A expenses have increased both in absolute terms and as a percent of revenue as compared to FY13, driven by increases in facilities consolidation expenses, a PMO office, severance packages, healthcare costs, and new leadership positions.

Management's projection for new revenue has been revised downward by $0.5M since February. The main reason for the adjustment pertained to CMS. The February numbers for CMS included projections for Black Gold Oilfield Services.

3G

FYE Operating Income is projected to lag budget by 7%, driven by lower than expected new business revenue in FFM and SEC. However, all divisions are expected outperform FY13, with STF and SEC showing very strong improvements.

FYTD SEC has generated only $0.7M in new revenue . Yet management's projection for the next six months is very aggressive. It is basedon the assumption that tighter collaboration between the sales executives and operations will support these results. Given that six months have already passed, it will be challenging to achieve the projection.




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The EBITDA margin rebounded compared to January.Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

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3H





CUSTOM CHARTS

3S Note: DWC = Days Sales Outstanding + Days Inventory on Hand - Number of Days of Payables

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Days Working Capital by Division

CMS FFM LDG STF SEC Total Linear (Total)

3T

The total DWC decreased two days to 38, as compared to February. The main driver was FFM, which saw a decrease of 7 days in DSO.

14.114.5 14.4

13.7

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3U

EBITDA has been tracking below budget as the division has incurred significant fixed expenses for the Digital Video Surveillance Center, while spending heavily on product installations to build capacity. In February and March, SEC has rebounded thanks to stronger margins and new business revenue.

For FY14, the DPO has been on a downward trend. Since September, DPO has decreased by 0.9 days, following a drop in the AP balance of $2.2million, or 28%. At the same time, AR has increased by $3.6 million, or 15.9%. Together, the changes in AP and AR drove the increase in working capital from September to February (see Fig. 5A).

Very positive trend.


APPENDIX 1NANA DEVELOPMENT CORPORATION

Business Analyst ReportXYZ Company

For the 6-Month Period Ended March 31, 2014

FINANCIAL AND OPERATING METRICS

Financial Metrics (in $ Millions)

4A Income Statement MTD BUD Var FYTD BUD Var PYFYTD Var

Revenues 19.9 19.1 4.3% 99.6 99.7 -0.1% 91.3 9.1%COGS -17.8 -17.0 -4.3% -89.8 -89.9 0.2% -83.1 -8.0%Gross Margin % 10.7% 10.7% 0.2% 9.9% 9.8% 0.7% 9.0% 9.7%Overhead -0.2 -0.2 13.9% -1.0 -1.2 19.5% -1.3 22.8%Gross Profit 1.9 1.8 6.8% 8.8 8.6 3.5% 6.9 27.6%SG&A -1.3 -1.1 -10.2% -7.1 -6.4 -9.7% -6.1 -15.7%Operating Income 0.7 0.7 0.9% 1.8 2.1 -15.5% 0.8 114.8%Oper Margin % 3.4% 3.5% -3.2% 1.8% 2.1% -15.4% 0.9% 96.8%Net Income 0.7 0.7 1.5% 1.8 2.1 -13.3% 0.8 120.1%Net Margin % 3.4% 3.5% -2.6% 1.8% 2.1% -13.2% 0.9% 101.8%EBITDA 0.8 0.8 1.4% 2.3 2.6 -10.9% 1.3 82.6%EBITDA Margin % 3.9% 4.0% -2.8% 2.3% 2.6% -10.8% 1.4% 67.3%

TRUE TRUEForecast

4B Financials Trend Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 FYTD14 FYE 2014Revenue 14.5 15.5 18.1 14.9 16.8 19.9 99.6 202.1 COGS (12.6) (13.9) (16.7) (13.9) (14.9) (17.8) (89.8) (180.8) Gross Margin % 13.4% 9.9% 7.5% 6.9% 11.1% 10.7% 9.9% 10.5%Overhead (0.1) (0.2) (0.2) (0.2) (0.1) (0.2) (1.0) (2.1) Gross Profit 1.8 1.4 1.2 0.9 1.7 1.9 8.8 19.2 SG&A (0.9) (1.1) (1.2) (1.2) (1.4) (1.3) (7.0) (14.6) Operating Income 0.9 0.2 (0.1) (0.3) 0.4 0.7 1.8 4.7 Oper Margin % 6.3% 1.4% -0.3% -2.3% 2.2% 3.4% 1.8% 2.3%Net Income 0.9 0.2 (0.1) (0.3) 0.4 0.7 1.8 3.6 Net Margin % 6.3% 1.6% -0.3% -2.2% 2.2% 3.4% 1.8% 1.8%EBITDA 1.0 0.3 0.0 (0.2) 0.5 0.8 2.3 5.7 EBITDA Margin % 6.9% 2.0% 0.2% -1.6% 2.7% 3.9% 2.3% 2.8%

4C Ratios Trend Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14

Revenue growth -30.1% 6.4% 16.8% -17.6% 13.0% 18.5%Current ratio 1.76 2.06 2.11 2.15 2.10 2.08 Quick ratio 1.40 1.85 1.91 1.91 1.89 1.88 Cash ratio 0.36 0.30 0.06 (0.01) 0.21 0.21 Days Payable Outstanding 15 14 12 11 10 10 Total Asset Turnover ratio 0.35 0.43 0.52 0.44 0.48 0.55 Cash Turnover 1.95 3.40 21.57 (92.43) 5.47 6.11 Working capital TO ratio 1.72 1.33 1.19 0.93 1.29 1.47

4D Profitability Trend 2008 2009 2010 2011 2012 2013 FYTD14 *

ROE 23.9% 18.3% 6.6% 21.9% 25.2% 20.5% 18.0%S&P 500 Annual % ∆

1-23.6% -9.4% 8.0% -0.9% 27.3% 16.7% 11.3%

Notes:1 Based on the fiscal period Oct. 1 - Sep. 30. FYTD as of March 31, 2013.* FYTD14 Net Income has been annualized.

XYZ beat the S&P 500 in FY13 and looks very likely to do the same in FY14.

XYZ - BAR - FY14 Period 6 Printe

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APPENDIX 2


XYZ CompanyAs of March 31, 2014

BALANCE SHEET: 6-month rolling

5A Balance Sheet FY2013 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14

Total assets

Cash and cash equivalents 210,553 211,769 137,873 137,311 137,952 115,549 114,398

Cash held in NANA Central Treasury 5,257,657 7,246,426 4,414,480 699,865 (298,849) 2,956,698 3,142,443

Marketable securities - - - - - - -

Derivative financial instruments - - - - - - -

Trade accounts receivable, net 22,459,707 21,854,037 23,779,289 26,842,174 26,282,341 24,668,392 26,028,123

Income tax receivable - - - - - - -

Due from related parties 1,939,019 5,250,962 1,022,689 688,512 1,267,440 1,136,266 1,127,588

Income tax receivable from parent - - - - - - -

Other accounts receivable, net 36,361 32,346 6,799 15,524 22,189 23,213 26,369

Inventories 1,690,364 1,744,272 1,813,247 1,738,032 1,728,009 1,729,834 1,771,000

Deferred tax asset - - - - - - -

Prepaid expenses 394,872 358,043 313,465 363,978 322,265 195,638 154,085

Investments in subsidiaries 135,318 135,318 - - - - -

Total Current Assets 32,123,851 36,833,173 31,487,842 30,485,396 29,461,347 30,825,590 32,364,006

Net property and equipment, at cost 2,275,943 2,278,259 2,210,727 2,295,371 2,257,411 2,252,990 2,278,309

Other assets: - - - - - - -

Investments in affiliates - - - - - - -

Investments in subsidiaries - - - - - - -

Goodwill 1,634,337 1,634,337 1,634,337 1,634,337 1,634,337 1,634,337 1,634,337

Intangible assets, net - - - - - - -

Non-current deferred tax asset - - - - - - -

Other non-current assets 234,165 235,165 284,444 306,018 256,092 250,417 244,092

Total other assets 1,868,502 1,869,502 1,918,781 1,940,355 1,890,429 1,884,754 1,878,429

Total assets 36,268,296 40,980,934 35,617,350 34,721,122 33,609,187 34,963,334 36,520,744

Liabilities and Shareholders’ Equity - - - -

Current liabilities: - - - -

Accounts payable 7,777,085 5,986,494 6,278,845 6,203,767 4,872,524 5,477,608 5,596,334

Accrued expenses 7,496,646 7,852,928 7,337,580 7,108,896 8,081,579 8,129,082 8,458,658

Interest rate swap - - - - - - -

Taxes payable - - - - - - -

Due to NANA Central Treasury - - - - - - -

Due to related parties 1,538,500 6,723,838 1,576,904 1,103,271 776,487 756,429 1,340,591

Income tax payable to parent - - - - - - -

Dividends payable - - - - - - -

Resource revenue distributable - - - - - - -

Line of credit - - - - - - -

Deferred revenue 310,586 355,940 116,988 59,929 (32,742) 321,744 162,848

Elders' Settlement Trust Payable - - - - - - -

Current portion of long-term debt - - - - -

Current portion of long-term capital leases 8,966 7,462 6,040 4,618 3,106 4,089 3,955

Other current liabilities - - -

Cash Overdrafts - - - - - - -

Total current liabilities 17,131,783 20,926,662 15,316,357 14,480,481 13,700,954 14,688,952 15,562,386

Long- term debt, line of credit - - - - - - -

Interest rate swap - - - - - - -

Long-term debt, less current portion - - - - - - -

Long-term capital leases, less current portion - - - - - - -

Long-term deferred tax liability - - - - - - -

Pension benefit liability - - - - - - -

Other long-term liabilities - - - - - - -

Total liabilities 17,131,783 20,926,662 15,316,357 14,480,481 13,700,954 14,688,952 15,562,386


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APPENDIX 2


XYZ CompanyAs of March 31, 2014

BALANCE SHEET: 6-month rolling

5A Balance Sheet FY2013 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14

Shareholders’ equity:

Common stock - - - - - - -

Preferred stock - - - - - - -

Additional paid-in capital 1,386,226 1,386,226 1,386,226 1,386,226 1,386,226 1,386,226 1,386,226

Contributed capital - - - - - - -

Retained earnings 13,825,618 17,750,287 17,750,287 17,750,287 17,750,287 17,750,287 17,750,287

Dividends - - - - - - -

Accumulated other comprehensive income - - - - - - -

Net Income (loss) 3,924,669 917,759 1,164,480 1,104,128 771,720 1,137,870 1,821,846

Total Shareholders' Equity 19,136,513 20,054,272 20,300,993 20,240,641 19,908,233 20,274,383 20,958,359

Noncontrolling interest - - - - - - -

Total equity 19,136,513 20,054,272 20,300,993 20,240,641 19,908,233 20,274,383 20,958,359

Total liabilities and equity 36,268,296 40,980,934 35,617,350 34,721,122 33,609,187 34,963,335 36,520,745

Working Capital (excl. cash and CT balances) 9,523,858 8,448,316 11,619,132 15,167,739 15,921,290 13,064,391 13,544,779

The increase of $3.5 million in working capital was due to the changes in AR and AP. Since September, AR has increased by $3.6 million, or 15.9%, while AP has decreased by $2.2 million, or 28.0%.


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Documents

XYZ - BAR - FY14 Period 6